Closing bell: Sensex, Nifty close mildly lower; ADAG stocks shine, RCom up 34%

3:30 pm Market Closing: Equity benchmarks closed rangebound session on a weak note as the Nifty failed to hold 10,450 level, tracking tepid global cues.

The 30-share BSE Sensex was down 59.36 points at 33,777.38 and the 50-share NSE Nifty declined 19 points to 10,444.20.

About 1,583 shares advanced against 1,124 declining shares on the BSE.

3:15 pm Forensic Audit: Sebi has ordered forensic audit of Pincon Spirit, which figures in the list of suspected shell companies, to check misuse of funds even as the regulator lifted trading curbs imposed on it.

Trading in the securities of Pincon Spirit will be reverted to the status prior to August 7, when the curbs were imposed, the Securities and Exchange Board of India (Sebi) said in an interim order dated December 19.

“There is prima facie evidence of misrepresentation of business/financials as well as suspicion of misuse of funds/ books of accounts of the company. The directors and KMPs (key management persons) have, therefore, prima facie failed to discharge their fiduciary responsibility.

3:05 pm Market Update: Benchmark indices erased gains in late trade, dragged by HDFC Bank and Reliance Industries.

The 30-share BSE Sensex was down 48.83 points at 33,787.91 and the 50-share NSE Nifty fell 15.80 points to 10,447.40.

About 1,597 shares advanced against 978 declining shares on the BSE.

3:00 pm ADAG stocks in action: Anil Dhirubhai Ambani Group stocks rallied, following the upsurge in Reliance Communications that shot up 45 percent.

Reliance Infrastructure, Reliance Naval, Reliance Capital and Reliance Power gained 7-12 percent.

2:45 pm Acquisition: The board of Bharti Airtel, India’s largest telecom firm, today approved an arrangement for takeover of consumer mobile business of Tata Teleservices, in a deal involving issue of equity and preference shares.

In October this year, the takeover of Tata Group’s consumer mobile business by Airtel on a ‘no-debt, no-cash basis’ was announced by the two firms.

“…the Board of Director in its meeting held on December 19, 2017 has approved…composite scheme of arrangement between Tata Teleservices, Bharti Airtel and Bharti Hexacom and their respective shareholders and creditors…,” Airtel said in a regulatory filing.

2:28 pm Prompt Corrective Action Framework: Bank of India informed exchanges that the Reserve Bank of India has placed the bank under Prompt Corrective Action Framework, consequent to the onsite inspection under the Risk Based Supervision Model carried out for year ended March 2017, and the report issued thereof.

“This is in view of high net NPA, insufficient CET1 Capital and negative return on assets for two consequent years. This action will contribute to the overall improvement in risk management, asset quality, profitability, efficiency, etc of the bank,” it said.

2:15 pm Buzzing: Global brokerage firm Deutsche Bank said Jubilant Foodworks remains its top pick in consumer discretionary space. The stock gained more than a percent intraday.

The research house has maintained its Buy rating on the stock with a target price of Rs 2,000.

Consumer feedback is positive on recent extension of ‘everyday value’, Deutsche said while expecting national launch of Rs 99 price point in 2018 to enhance value-proposition positioning For Domino’s.

Turnaround plans implemented are steps in the right direction, it said.

2:05 pm SIAM on Electric Vehicles: Automobile industry body SIAM has
proposed all new vehicle sales in India to be pure electric by 2047 while the same for intra-city public transport fleet can be achieved by 2030.

In a white paper submitted to the government, the Society of Indian Automobile Manufacturers (SIAM) said it is aiming at 40 percent of new vehicle sales in the country to be pure electric by 2030.

The paper has been brought out in line with the government’s vision of 100 per cent electric for public mobility and 40 percent electric for personal mobility by 2030, it said in a statement.

However, former power minister Piyush Goyal had in April this year said: “The idea is that by 2030, not a single petrol or diesel car should be sold in the country.”

1:59 pm Buzzing: The golden run for Maruti Suzuki India (MSIL) continued as the stock hit Rs 10,000 mark for the first time in intraday trade. The stock which has already rallied over 80 percent so far in the year 2017 is all set to close the year on a high note.

Maruti Suzuki entered the list of stocks which trade above Rs 10,000. Most of the high-value stocks have outperformed the S&P BSE Sensex returns so far in the year 2017.

Stocks which are trading above Rs10,000 market price include names like MRF, Rasoi, Eicher Motors, Page Industries, Honeywell Automation, Bosch, Shree Cements, 3M India, Polson, and Maruti Suzuki.

1:47 pm Market Update: Equity benchmarks continued to trade higher with mild gains while the broader markets outperformed as the Nifty Midcap index gained half a percent.

The 30-share BSE Sensex was up 55 points at 33,891.74 and the 50-share NSE Nifty rose 16.20 points to 10,479.40.

About two shares advanced for every share falling on the BSE.

ONGC, Hindalco Industries, Hero Motocorp, Lupin, GAIL and Tata Motors were top gainers while Dr Reddy’s Labs, HPCL, Eicher Motors, Ambuja Cements, Tata Steel and Adani Ports were under pressure.

1:29 pm VRS: SAIL said the scheme of VRS-2017 was implemented during the period June 18, 2017 to November 30, 2017 and total number of 1269 employees has been taken VRS and one time financial implication works out to be Rs 254 crore etc.

1:20 pm US FDA nod: Morepen Laboratories today said the US health regulator has given approval to Montelukast Sodium, used in managing asthma symptoms and seasonal allergies, for sale in the US market.

“The US Food and Drug Administration (USFDA) has cleared Montelukast Sodium, a bulk drug/API manufactured by Morepen Laboratories, for sale in the US market,” the company said in a regulatory filing.

“This gives Morepen an entry into the Rs 2,000 crore (approximately USD 300 million) US market for Montelukast. The first commercial orders for the bulk drug are expected in the second quarter of the next financial year,” it added.

1:05 pm ONGC gains: Shares of oil & gas major Oil and Natural Gas Corporation (ONGC) gained over 2 percent intraday on Wednesday after global research firm Macquarie initiated a coverage on the stock with an outperform call for target at Rs 290 per share, implying 60 percent potential upside and 6 percent dividend yield.

The house is of the view that realisations and margin are likely to gradually rise and sees the mispricing with respect to HPCL deal a substantial opportunity.

Macquarie expects production growth after five years of lacklustre performance adding that oil & gas production is likely to rise 35 percent by FY 22. It expects favourable dividend yield of 6 percent over FY18-22.

12:45 pm Stock view: Phillip Capital has initiated coverage with Buy rating on Sintex Plastics Technology and set a target price at Rs 145, implying a potential upside of 85 percent. The stock rallied as much as 6.7 percent intraday Wednesday.

The subsidiary of Sintex Industries is in strong position to capitalise on economic recovery and growth in retail, warehousing and cold chain post GST.

Sintex Plastics Technology operates under two divisions – custom moulding solutions and building products & solutions (water storage tanks, prefab and construction for mass housing).

12:35 pm Buzzing: Phillip Capital has initiated coverage with Buy rating on Sintex Plastics Technology and set a target price at Rs 145, implying a potential upside of 85 percent. The stock rallied as much as 6.7 percent intraday Wednesday.

The subsidiary of Sintex Industries is in strong position to capitalise on economic recovery and growth in retail, warehousing and cold chain post GST.

Sintex Plastics Technology operates under two divisions – custom moulding solutions and building products & solutions (water storage tanks, prefab and construction for mass housing).

The research house sees stable and sustainable growth in custom moulding segment and expects prefab business to grow on government spending on healthcare, education, and sanitation.

Phillip Capital expects revenue/EBITDA/net profit to grow at a CAGR of 9/6/10 percent over FY17-20.

12:20 pm Market Check: The broader markets continued to outperform benchmark indices in afternoon despite sluggish trade in Asian stocks.

All sectoral indices traded in green barring PSU Bank (down 0.8 percent) and FMCG.

The 30-share BSE Sensex was up 34.72 points at 33,871.46 and the 50-share NSE Nifty rose 12.80 points to 10,476.

About two shares advanced for every share falling on the BSE.

12:05 pm Order Win: Ramco Systems, a enterprise software company, said its Global Tax Engine is configured to address UAE VAT, which is one of the biggest tax reforms being introduced in the Gulf nation.

Ramco’s Finance and Accounting Suite will offer clients’ a VAT-ready application to manage the new tax regime.

Effective 1st January 2018, the UAE government will implement taxation in efforts to diversify its source of revenue.

11:55 am Order Win: Veer Energy and Infrastructure has received an order from well-known chain of school group having schools in Gujarat and Maharashtra for rooftop solar panel installation.

The company is eyeing on this cost saving advantage as the big opening for solar rooftop industry.

11:40 am Redemption of CP: Havells India informed exchanges that the commercial papers issued on September 19 by the company to UTI Mutual Fund, for an amount of Rs 150 crore have been redeemed on the maturity date i.e. December 19, 2017.

11:20 am Fundraising: HDFC Bank informed exchanges that the board of directors today has approved raising of funds aggregating up to Rs.24,000 crore.

Of which, an amount up to a maximum of Rs 8,500 crore will be through issuance of equity shares of face value of Rs 2 each pursuant to a preferential issue to promoter Housing Development Finance Corporation, the bank said.

The balance will be raised through issuance of equity shares / convertible securities / depository receipts pursuant to a qualified institutions placement / American Depository Receipts / Global Depository Receipts, it added.

The bank said extra-ordinary general meeting will be held on January 19, 2018 to seek approval of the shareholders of the bank for above fund raising plant.

10:50 am Acquisition: Strides Pharma Asia Pte, Singapore, a wholly owned subsidiary of Strides Shasun has entered into definitive agreements with Trinity Pharma proprietary, South Africa for acquisition of controlling stake in Trinity.

10:40 am Amara Raja in focus: Shares of Amara Raja Batteries advanced 4.7 percent intraday as it has commissioned its two-wheelers battery plant at the Amara Raja growth Corridor in Chittoor, Andhra Pradesh.

The plant was inaugurated by George R Oliver, Chairman and CEO at Johnson Controls, showcasing another milestone in the successful joint venture between the two companies.

The first phase of the plant was commissioned will have a capacity of 5 mn units.

The plant will have an ultimate capacity of 17 mn units with an estimated investment of Rs 700 crore taking the total capacity for two-wheelers batteries to 29 million units.

10:20 am Buzzing: The US Food and Drug Administration has cleared Montelukast Sodium, a bulk drug / API manufactured by Morepen Laboratories, for sale in the US market. The stock rallied 10 percent.

“This gives Morepen an entry into the Rs 2,000 crore (approximately USD 300 million) US market for Montelukast. The first commercial orders for the bulk drug are expected in Q2FY19,” the company said.

10:01 am Earnings: Telecom operator Tata Teleservices (Maharashtra) today reported widening of loss to Rs 8,194.67 crore in the second quarter ended September 30, mainly on account of writing off its consumer mobile business.

The company had posted a loss of Rs 452.82 crore in the same period a year ago.

Tata Teleservices (Maharashtra) (TTML) impaired Rs 7,708.63 crore for its mobile business which it is transferring to Bharti Airtel.

“The company has recorded Rs 7,708.63 crore towards impairment loss during the quarter and half year ended September 30, 2017 on its consumer mobile business (CMB) assets based on the assessment of its recoverable value,” TTML said in its result report.

In the last quarter of previous fiscal, the TTML had written off Rs 905.41 crore for spectrum it acquired in an auction that was conducted by the Department of Telecom in 2015.

9:45 am Market Update: Equity benchmarks remained rangebound around previous closing values, after hitting record highs in opening.

The 30-share BSE Sensex was down 13.05 points at 33,823.69 and the 50-share NSE Nifty fell 6.90 points to 10,456.30.

Midcap continued to outperform benchmark indices. Market breadth remained strong as about three shares advanced for every share falling.

GAIL, Maruti Suzuki, HDFC Bank and M&M hit fresh record highs.

9:35 am Merger: Fair trade regulator CCI has approved the scheme of amalgamation between IndusInd Bank and Bharat Financial Inclusion.

The Competition Commission of India (CCI) intimated that the commission in its meeting held today considered the proposed combination and approved the same, a regulatory filing on stock exchanges by both companies said.

The scheme remains subject to the receipt of approval from the RBI and regulatory approval including approvals of the stock exchanges, Sebi, the National Company Law Tribunal and respective shareholders, it said.

IndusInd Bank in October decided to acquire country’s leading microfinance player Bharat Financial Inclusion Limited (BFIL).

9:29 am Fundraising: Steel major Tata Steel said its board has approved raising Rs 12,800 crore through a rights issue to finance organic and inorganic growth plans.

The board in its meeting today also approved a proposal to expand the capacity of Kalinganagar plant by 5 million tonne per annum (MTPA) to 8 MTPA with a total investment of Rs 23,500 crore, the company said in a statement.

The board also reviewed the financial strategy of the company in the light of organic and inorganic growth strategy of the company and approved financial plan to raise capital for the plan.

“The Board approved issuance of equity and equity linked instruments including ordinary shares of the company by way of a rights issue to existing shareholders on record date for an amount not exceeding Rs 12,800 crore…,” the statement said.

9:20 am Ruchi Soya in focus: Debt-ridden Ruchi Soya Industries said that insolvency proceeding has been initiated against the company and the powers of its board have been suspended.

On December 9, the company had said that petitions filed by Standard Chartered Bank and DBS Bank against Ruchi Soya Industries before the National Company Law Tribunal (NCLT), Mumbai have been admitted.

In a filing to the BSE, Ruchi Soya said that pursuant to an order of the NCLT, Mumbai Bench, “Corporate Insolvency Resolution Process (CIRP) has been initiated for the company as per the provisions of the Insolvency and Bankruptcy Code”.

9:15 am Market Check: Equity benchmarks started off trade at record highs on Wednesday, but immediately slipped into red to trade volatile.

The 30-share BSE Sensex was down 18.70 points at 33,818.04 and the 50-share NSE Nifty fell 12.40 points to 10,450.80.

About 785 shares advanced against 445 declining shares on the BSE.

Tata Steel, UltraTech Cement, Dr Reddy’s Labs, SBI, L&T, HUL and Power Grid were early losers while ONGC, Coal India, Maruti Suzuki, GAIL, M&M and Hero MotoCorp were gainers.

Nifty Midcap was flat.

Religare Enterprises rallied 5 percent and Edelweiss Financial was up 1.7 percent. Edelweiss Financial will buy Religare’s securities business which includes securities & commodities broking & depository participants services.

MTNL, Reliance Communications, Indiabulls Real Estate and Jain Irrigation gained 2-12 percent.