HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE 7 September 2015 DAILY MARKET COMMENTS INDIA SUMMARY Benchmark shares indices ended lower for the sixth straight session amid sell-off in late trades after the rupee hit a fresh 2-year low while growth concerns in China dampened investor sentiment. Further, persistent selling by foreign institutional investors at higher levels and weak monsoon forecast also weighed on the markets. The 30-share Sensex dropped 308 points to end below 25,000 at 24,894 and the 50-share Nifty slipped 96 points to end at fresh 13-month low of 7,559. In the broader markets, the BSE Mid-cap and Small-cap indices closed 1.8-2.2% lower. Healthcare shares ended lower on profit taking at higher levels. Lupin and Sun Pharma ended 2.7% lower. Dr Reddy s ended down 2.8% after the company decided to recall over 55,000 bottles of Amlodipine besylate and Atorvastatin calcium tablets. Abbott India ended 2.5% higher in an otherwise weak market. Post June quarter results, shares of pharmaceutical company outperformed the market by gaining 20%. Natco Pharma ended down 3.6%. The Reserve Bank of India (RBI) approved hike in investment limit of the company's paid-up capital by overseas investors. ONGC ended marginally higher after overseas investment arm -- ONGC Videsh (OVL) -- has acquired a 15% stake in Vankor oil field in East Siberia. HIGHLIGHTS IN THE HEADLINES TODAY Weak rupee, China growth woes drag Sensex below 25,000; Nifty breaches 7,600 Metal stocks lose sheen as China growth weakens Rupee drops to two-year low of 66.85 ONGC: Multiple gains from Russian oil deal Pfizer's arthritis drug patent rejected again PM to meet industrialists tomorrow to discuss economic crisis Deficient rains to spoil cotton farmers' party INSTITUTIONAL ACTIVITY ON NSE & BSE Category Buy Value (Rs bn) Sell Value (Rs bn) Net Value (Rs bn) Foreign Institutional Investors (FII) 23.29 31.56 (8.27) Domestic Institutional Investors (DII) 15.22 10.18 5.04
INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 25,202 25,303 25,387 24,852 24,894 (308.09) (1.22) CNX Nifty 7,655 7,686 7,705 7,546 7,559 (96.25) (1.26) CNX 500 6,421 6,445 6,459 6,317 6,323 (97.65) (1.52) CNX Nifty Junior 19,408 19,467 19,515 18,919 18,947 (460.80) (2.37) CNX Midcap 12,592 12,631 12,659 12,309 12,319 (272.70) (2.17) CNX IT 11,414 11,445 11,451 11,265 11,318 (95.30) (0.83) CNX 100 7,805 7,835 7,853 7,681 7,692 (112.60) (1.44) BANK Nifty 16,129 16,222 16,273 15,762 15,790 (339.00) (2.10) NIFTY GAINERS Company Curr. Gain TECHM 536 529 1..29 HDFC 1,153 1,142 0.99 YESBANK 651 647 0.59 TATAMOTORS 324 323 0.34 ACC 1,348 1,345 0.19 NIFTY LOSERS Company Curr. Loss NMDC 94 98 (4.43) BOSCHLTD 20,953 21,820 (3.97) AXISBANK 452 468 (3.53) ICICIBANK 249 258 (3.39) VEDL 90 93 (3.38) COMMODITIES & CURRENCIES Commodity (Futures) Day Curr. Day Brent Crude (USD / bbl) 49.61 49.06 Gold (USD / t. Oz) 1,121.40 1,120.30 Silver (USD / t. Oz) 14.55 14.50 Currency Curr. Rate USD / INR 66.85 EUR / INR 74.54 ASIAN MARKETS Index Closing Gain / Loss Var. Hang Seng 20,583 257.09 1.23 Nikkei-225 17,860 68.31 0.38 Shanghai Composite 3,080 79.75 2.52 Straits Times 2,852 11.40 0.40 Taiwan TAIEX 7,987 14.04 0.18 100 Yen / INR 55.99
GLOBAL MARKET OVERVIEW European stocks rose on Monday, led by a surge in mining and commodities giant Glencore after it pledged to slash its debt by a third, but a fall in China after markets there reopened after a four-day break dragged down Asian bourses. Trading is lighter than usual with US markets closed for Labor Day, while investors across all asset classes continued to digest the implications of last week's US jobs data on the timing of the first US interest rate hike since 2006. GLOBAL NEWS China has revised its annual economic growth rate in 2014 to 7.3% from the previously released figure of 7.4%, the National Bureau of Statistics said on Monday. Gross domestic product stood at 63.6 trillion yuan ($10.00 trillion) last year, down by 32.4 billion yuan from the initial estimate, the bureau said in a statement on its website. The bureau has revised down 2014 growth of the services sector by 0.3 percentage points to 7.8%, which helped drag down estimated GDP growth rate, it said. China's foreign exchange reserves, the world's largest, shrank by $93.9 billion in August, the biggest monthly fall on record, reflecting the scale of intervention by the central bank to support the yuan after a surprise devaluation last month. The People's Bank of China reported reserves had dropped to $3.557 trillion, having descended from a record $3.99 trillion in June 2014, as capital outflows escalated due to fears over China's economic slowdown and prospects of rising US interest rates. The US job creation in August was the slowest in 5 months and significantly undershot consensus expectations of about 220,000. However, there was a notable fall in the unemployment rate to 5.1%, the lowest level since April 2008. China's top economic planner has given the green light to 77 billion yuan ($12.10 billion) worth of highway and bridge projects, the latest in a spate of such approvals as Beijing looks to infrastructure to support economic growth. The projects included a feasibility study for a 23.3- billion-yuan highway in the south-west province of Guizhou and a 7.3-billion-yuan bridge project in the central province of Hubei, the National Development and Reform Commission said. ECONOMIC AND POLITICAL NEWS Prime Minister Narendra Modi is learnt to have called a two-and-a-half-hour meeting with top industrialists of the country on Tuesday to discuss the global economy. Reliance Industries chairman Mukesh Ambani and Tata group CMD Cyrus Mistry will be among the leading business honchos who are going to be present at 7 Race Course Road. The focus of the interaction will be how the global economic downturn, especially in China, can be an opportunity for India, a source aware of the development told Business Standard. In the past two weeks, the PM and his senior cabinet colleagues have engaged in dialogue with bankers and global experts on managing the economy. The rupee hit a two-year low in intraday trade against the US dollar tracking the Non Deliverable Forward (NDF) market and depreciated by 0.5% as against Friday's close. The rupee slipped to 66.85 as against a closing of 66.46 on Friday.
INDUSTRY NEWS The cotton growers in Maharashtra, Gujarat and Karnataka are expected to be severely hit due to deficit monsoon this year. A shortfall of 50% of monsoon rain till now may result in 20% fall in production in the pockets in these states and if there are no rains in next ten days, a draught like situation may exist, cutting the production by 50%. This could result in sharp fall in season's cotton crop and the fall is estimated between 5 to 12 % by various intermediaries. Life Insurance Corporation (LIC), the country's largest institutional investor, is reorganising its investment in automobile companies. The government-owned giant is booking profits in stocks like Maruti Suzuki and Ashok Leyland that have seen significant appreciation. It has also raised its stake in stocks like Tata Motors and Hero MotoCorp that have underperformed. SECTOR PERFORMANCE AND TRENDS Out of 2774 scrips traded over BSE, 659 advanced & 2016 declined. Sector Var S&P BSE Fast Moving Consumer Goods (1.50) S&P BSE Healthcare (2.57) S&P BSE Information Technology (0.96) S&P BSE AUTO (1.16) S&P BSE BANKEX (2.10) S&P BSE CAPITAL GOODS (1.89) S&P BSE CONSUMER DURABLES (0.86) S&P BSE METAL (2.31) S&P BSE OIL & GAS (1.01) Sector Trend * Auto BFSI Construction Consumer Goods Energy Industrial Manufacturing IT Metals Telecom * Shows trend for current and last four trading session S&P BSE POWER (1.92) S&P BSE REALTY (1.75) S&P BSE TECK (0.97) IPOs / BONDS ABB India said it has raised Rs 6 bn by issuing non-convertible debentures (NCD) on private placement basis. "The committee constituted by the board of directors of the company at its meeting held on September 4, 2015 has allotted 600 rated listed, unsecured redeemable nonconvertible debentures of face value of Rs 1,00,00,000 each at par on Private Placement basis aggregating...(rupees six hundred crore only) to the identified investor," the company said in a regulatory filing.
COMMODITIES Gulf oil ministers are due to meet this week in Qatar for an annual meeting, in the first gathering by the heavyweight crude producers since the latest slide in oil prices. But while the price drop is not on the agenda for the scheduled meeting of the six-nation Gulf Cooperation Council (GCC) - Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain and Oman, it will be a chance for oil ministers to air views on the market. CORPORATE ANNOUNCEMENTS The Indian Patent Office has again denied Pfizer Inc a patent on its rheumatoid arthritis drug tofacitinib, the latest setback for a multinational drugmaker seeking to enforce its intellectual property rights in the country. Pfizer is reviewing its options for further action, a Mumbai-based company spokesman said in an emailed statement. The information in this publication was developed using data which Hinduja Bank () Ltd assumes to be accurate; nevertheless, Hinduja Bank () Ltd accepts no liability and offers no guarantee. The availability of such information does not constitute a recommendation to buy or sell any of the securities discussed therein. Statements made in this publication can be changed without prior notice. Moreover, the content is not intended for individuals (or entities) who (which), by reason of their nationality or domicile or for any other reason, are subject to foreign regulations prohibiting access to banking services or investment instruments via one or several distribution channels, or prohibiting or restricting the use of any information provided in this document.