Oil Prices Fall To New April Lows As Oversupply Bites

Singapore: Oil prices fell to fresh April lows on Friday as slowing economic growth threatened to worsen ongoing oversupply of crude and refined products.

International Brent crude oil futures were trading at $42.51 at 0617 GMT (11:47 a.m. in India), down 19 cents, or 0.4 per cent, from their previous close, the lowest since April.

US West Texas Intermediate (WTI) crude fell 26 cents, or 0.6 per cent, to $40.88 a barrel, slipping below $41 for the first time since April.

Both crude benchmarks are now down around 20 per cent since their last peak in June.

Because refiners produced too much fuel from cheap crude, margins in the Americas, Europe and Asia have fallen sharply this year, eroding revenues for oil producers and refiners like Royal Dutch Shell, which this week reported poor results.

"Margins remain on a negative trajectory... This seems a clear signal that Atlantic Basin refined product markets are currently oversupplied," Jason Gammel of US investment bank Jefferies said on Friday.

Benchmark Singapore refinery margins are down 60 per cent from their January highs to $4.28 per barrel, with stocks of product brimming near historic highs.

"We expect that the upcoming maintenance season combined with economic run cuts will correct the refined product markets... (and) the corresponding reduction in crude oil demand could weigh on Brent prices in the near term," he added.

On the supply side, Iranian exports to Asia's main buyers - China, India, Japan and South Korea - jumped 47.1 per cent in June from a year ago to 1.72 million barrels per day - the highest levels in over four years.

The sales jump is the latest sign that Tehran's aggressive moves to recoup market share, lost under international sanctions, are paying off.

Because of ongoing oversupply, US bank Goldman Sachs said this week that it did not expect a big recovery in prices any time soon.

"We continue to expect that oil prices will remain in a $45 per barrel to $50 per barrel trading range through mid-2017 with near-term risks skewed to the downside," the bank said.

Despite this, some analysts said recent price falls in oil had been overdone, especially as demand remains strong despite concerns over future economic growth.

"Investors have become overly bearish on oil as US production and gasoline inventories continue to rise. We think those concerns are unwarranted. Underlying demand in the US remains robust," ANZ bank said.

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GST Hopes Send Nifty To 15-Month High: 10 Updates

India stock markets surged today with Nifty hitting a 15-month high of 8,665 as hopes of the passage of GST Bill during the current monsoon session of Parliament lifted sentiments. The Sensex also rose over 200 points to an 11-month high of 28,210. A rally in global equity markets also lifted the sentiment in domestic markets.



Here Are 10 Updates: 

1) In a big boost for the passage of the key GST Bill, a majority of states on Tuesday backed the government on key issues which have been stalling the Bill. This has raised hopes that with greater numbers backing the bill, it could be taken up in the Rajya Sabha or upper house in the current monsoon session of Parliament.

2) Asian markets climbed to fresh near one-year highs today as with Japan's Nikkei surging 2 per cent amid reports that Japan has unveiled more than $266 billion economic stimulus.

3)  Back in the domestic markets, gains in today's session were led by strong buying interest in rate-sensitive banking, auto and auto stocks. The banking sub-index or Bank Nifty on the NSE also rose close to its highest level in a year.

4) Traders are betting that with good monsoon rains, the inflation will edge lower in coming months, giving room to the Reserve Bank to lower rates.  The RBI's next policy review is scheduled on August 9.

5) The Reserve Bank is expected to cut key interest rates by 25 basis points in its policy review meet on August 9, if good rains damp pulse price inflation, says a Bank of America Merrill Lynch (BofA-ML) report.

6) Indian markets have rallied 27 per cent from the Budget day (February 29) low. This has led some analysts to adopt a cautious stance. The market at the current juncture looks a touch expensive from the perspective of six months to one year, says Sunil Subramaniam, CEO of Sundaram Mutual Fund. But from the horizon of two to three years, it is reasonably priced because the earnings growth in coming quarters will justify the valuations, he added.

7) Analysts expect earnings growth to pick up in the coming quarters on the back of good monsoon and the award of Seventh Pay Commission recommendations. With the government notifying the hike, employees may get revised pay from August which will further spur consumption demand.

8) Sumeet Bagadia, associate director at Choice Broking, says Nifty has strong support at 8,550-8,540 and a move above 8,650 could extend the rally by another 100-150 points.

9) The global uncertainty caused by Brexit has bolstered expectations that the US Fed will delay its rate hikes. The Fed's two-day policy meet ends today and it is widely expected that the US central bank will stay put on its rates.

10) The cautious stance from the global central banks has led to strong inflows into emerging markets, including India.  Foreign investors have bought $1.2 billion worth of Indian shares this month, according to Bloomberg. Global investors have been buyers of Indian shares for five months, the longest stretch since November 2014, Bloomberg added. The rupee has remained stable around 67 dollar, further boosting the sentiment in Indian equity markets.

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Nifty Surges To 15-Month High, Sensex Up Over 200 Points

10:15 a.m.: Nifty rose to its highest level in 15 months on the back of strong gains in banking, auto and capital goods stocks.

10:02 a.m.: Banking stocks were witnessing good buying interest. The Bank Nifty jumps 1.14 per cent or 214 points to 19,075; ICICI Bank was the top gainer from this space, up 2.9 per cent to Rs 269.25. Punjab National Bank, State Bank of India, Bank of Baroda, Federal Bank, Canara Bank, Kotak Mahindra Bank and IndusInd Bank were also among the gainers.

9:56 a.m.: Stock markets continue to trade on a strong note on the back of gains in banking, oil & gas, power, capital goods and auto stocks. Sensex rises 206 points to 28,182 and Nifty advances 69 points to 8,659.

9:33 a.m.: Buying was visible across the sectors barring a few pharma stocks. Banking, metal, oil & gas, power and auto stocks were witnessing good buying interest in the opening deals.

From the Nifty basket of stocks, 46 were advancing while 5 were declining.

Zee Entertainment was the top Nifty gainer, up 3.3 per cent to Rs 490 after the company post the market hours on Tuesday reported that its net profit in June quarter rose 22 per cent to Rs 217 crore.

Ambuja Cements, Maruti Suzuki, Hindalco, ICICI Bank, Tata Motors, Bank of Baroda and Power Grid were also among the gainers.

On the other hand, Dr Reddy's Labs, Bajaj Auto, Lupin, Cipla, Reliance Industries and Sun Pharma were among the notable laggards.

The broader markets were outperforming the benchmark indices. The BSE mid-cap and small-cap indices were up 0.7 per cent each.

9.15 a.m.: The BSE Sensex and Nifty opened higher tracking gains in banking and auto shares. Dr Reddy's Lab extended selloff and fell as much as 10 per cent following its weak Q1 earnings yesterday. 

8.35 a.m.: The BSE Sensex and the broader Nifty are likely to open with a positive bias tracking positive trade in Asian stock markets. The Nifty futures trading on the Singapore Exchange (SGX) were up 0.14 per cent or 12 points at 8,603 as of 8.30 a.m., indicating a higher start for the Sensex and Nifty.

Foreign investors bought cash shares worth Rs 671 crore on Tuesday, while domestic investors were net sellers to the tune of Rs 418 crore.

Investors would be eyeing developments around the Goods and Services Tax or GST bill after states cleared the way for the central government to present it for approval of the Rajya Sabha or upper house of Parliament. State finance ministers agreed that a cap on the rate of GST will not be mentioned in the main bill.   

 

Earnings season will continue to dominate sentiments. Dr Reddy's Lab, which missed Q1 profit estimate by a wide mark, is likely to remain under pressure. Bharti Infratel and Ambuja Cements, which reported Q1 earnings after market hours yesterday, will also be in focus.

Meanwhile, Asian Paints, Bajaj Auto, Bharti Airtel, HDFC, JSW Steel and Yes Bank will report their Q1 numbers today.

In Asia, markets in Japan and Hong Kong edge up on Wednesday following a relatively upbeat session overnight for US and European stocks. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, while Japan's Nikkei climbed over 1 per cent.

Global investors are eyeing the Fed, which concludes its two-day policy meeting later on Wednesday. The US central bank is widely expected to stand pat on monetary policy and the markets will sift through its statements - a post-meeting press conference will not be held - for any hints of a future interest rate hike.

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Sovereign Gold Bond: NSE Gets Bids Worth Rs 106 Crore

New Delhi: Leading bourse National Stock Exchange (NSE) on Monday said it has received about 341 kg worth of subscription bids valuing over Rs 106 crore for the fourth tranche of the sovereign gold bond scheme.

Bids for the bonds issued by RBI on behalf of the central government were received during the 5-day window that ended on July 22.

"An initial estimate shows that the total collection stands at 341.6 kg and is worth Rs 106.5 crore. The numbers are subject to verification by RBI and other authorities," NSE said in a statement.

Earlier, the central bank appointed NSE the 'Receiving Office' for collecting subscription bids from investors. The exchange has received some 8,000 applications.

It organised nearly 100 programmes across India last one month to popularise the product.

The first three tranches had attracted an investment of Rs 1,318 crore, equivalent to 4.9 tonnes of gold, at prices prevailing at those times.

SGB -- the government securities denominated in grams of gold -- offers an alternative to keeping gold in physical form. The scheme was announced by the government on October 30, 2015.

The scheme offers an interest of 2.75 per cent per annum, payable every six months on initial investment minus the risk of theft/loss or impurities associated with physical gold.

The bond can be converted into demat form and used as collateral for availing loans. It will be repayable after eight years from the date of issue and premature redemption is permitted after 5th, 6th and 7th years from the date of issuance.

Funds raised through the bonds will form part of the government's market borrowing programme.

Redemption of sovereign gold bonds by an individual is exempt from capital gains tax. It also provides that long-term capital gains accruing to any person on transfer of sovereign gold bonds shall be eligible for indexation benefits.

India imports about 1,000 tonnes of gold every year, which is the second-biggest constituent of the import bill after crude oil.

Gold imports showed a decline of about 8 per cent to $31.72 billion in 2015-16 due to weak global prices and are expected to keep a lid on the country's current account deficit. The print read $34.38 billion in 2014-15.

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Merger With Cairn India To Be Earnings Dilutive For Vedanta: Analysts

Cairn India and Vedanta shares traded flat on Monday after posting a strong rally on Friday, when billionaire Anil Agarwal-controlled Vedanta offered to sweeten the terms for taking over subsidiary Cairn India.

Under the new offer, Vedanta will give one share and four redeemable preference shares for each share in Cairn India. The additional three preference shares are worth Rs 30 and would carry a coupon (interest rate) of 7.5 per cent.

Earlier Vedanta was offering one share and one redeemable preference share for each Cairn share. Vedanta shareholders will vote on the new offer on September 8, while Cairn India shareholders will vote on September 12.

Some analysts said the new deal is attractive for Vedanta, which will get Cairn India's Rs 20,000 crore of cash on books, helping the company to reduce its debt liability.

"The revised terms seem definitely more attractive and conducive than (the offer) in the past," said Jigar Shah, chief executive at Maybank Kimeng Securities.

However, brokerages added that the deal will be earnings dilutive for Vedanta, which means earnings of Vedanta are likely to fall post the merger with Cairn India.

According to CLSA, Vedanta's FY18 earnings per share (EPS) may fall to Rs 17.6, compared to its earlier estimate of Rs 20. However, CLSA has upped target price on Vedanta to Rs 205 saying that the merger will drive re-rating of Vedanta shares as it will get better access to cash. CLSA has a "buy" call on Vedanta.

Duetsche Bank also said that the deal will be earnings dilutive for Vedanta in the near term. The brokerage has a "hold" rating on Vedanta with a target price of Rs 163 per share.

As of 10.41 a.m., Vedanta shares traded 1.3 per cent higher at Rs 171.1 apiece and Cairn India shares were up 1 per cent at Rs 193.80 compared to a flat Nifty.

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Rallis India Surges As Q1 Net Jumps Four-Fold

Shares of Tata group company Rallis India surged as much as 8 per cent to hit intraday high of Rs 224.90 after the agrochemical company's net profit surged in the June quarter. 

The Mumbai-based company's net profit jumped over four times to Rs 174.20 crore, aided by an exceptional gain of Rs 158 crore on sale of land parcel in Mumbai.

Rallis India's net sales jumped 7 per cent to Rs 467.66 crore on annual basis

As of 10:21 a.m., shares of Rallis India traded 5 per cent higher at Rs 219.35, outperforming the Nifty which was down 0.07 per cent.

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Asian Shares Near 9-Month Peak, Dollar Shines

Tokyo: Asian shares held near nine-month highs on Monday as worries over the impact of Britain's Brexit vote eased amid efforts to maintain growth, while the dollar was buoyed by a run of solid U.S. economic data.

Policy makers from the Group of 20 countries agreed to work to support global growth and better share the benefits of trade, in a weekend meeting dominated by the impact of Britain's exit from Europe and fears of rising protectionism.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent to stand just below its nine-month peak hit on Thursday. Japan's Nikkei rose 0.4 percent.

U.S. stock prices marked four straight weeks of gains last week, supported by renewed strength in the tech and telecom sectors and a stronger-than-expected report on manufacturing.

The S&P 500 set another record closing high on Friday.

"At the moment, U.S. markets are attracting global funds. Globally there remain risks, such as European financial institutions or the Chinese yuan," said Koichi Yoshikawa, executive director of finance at Standard Chartered Bank in Tokyo.

"We have to see if investors are ready to diversify to other markets than the U.S. in coming weeks," he added.

The strength of U.S. economic data in recent weeks has revived speculation that the Federal Reserve may raise interest rates around the end of year.

Dollar interest rates futures, which had priced out any chance of a rate hike this in the days that followed the UK referendum, are now pricing in about a 40 percent chance of a 0.25 percentage point increase by the end of year.

That is boosting the relative attraction of the dollar in the currency market.

The dollar's index against a basket of six major currencies hit a 4-1/2-month high of 97.543 on Friday and stood at 97.426 in early Monday trade.

As the dollar gains, the euro has been put on back foot, trading at $1.0970. The single currency hit a one-month low of $1.09555 on Friday.

The British pound is also under pressure after surveys showed on Friday business activity had wilted in the wake of the Brexit vote.

The pound traded at $1.3141, near last week's low of $1.3065.

The yen traded at 106.23 per dollar, off last week's six-week low of 107.49.

The yen showed la imited response to comments from Bank of Japan Governor Haruhiko Kuroda on the sidelines of the G20 meeting.

Kuroda said he would ease policy further if necessary to achieve its 2 percent inflation goal, but also said there was no discussion on "helicopter money" - a radical policy of expanding fiscal stimulus financed by printing money.

Oil prices hovered near 2-1/2-month lows after having lost about 4 percent last week on renewed worries about a global crude glut.

Brent crude futures traded at $45.83 per barrel, near Friday's low of $45.17, its lowest since May 11.

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Sensex Trades On Lacklustre Note; Broader Markets Outperform

9:51 a.m.: Oil & gas stocks were witnessing buying interest. The BSE Oil & Gas index was the top sectoral gainer, up 1.3 per cent; Indian Oil, HPCL, Bharat Petroleum, Indraprastha Gas, Petronet LNG and Oil India were among the gainers.

9:41 a.m.: Banking stocks were witnessing selling pressure. The Nifty Bank index was down 0.3 per cent or 52 points at 18,638; Axis Bank, Kotak Mahindra Bank, ICICI Bank, Yes Bank and HDFC Bank were among losers.

9:29 a.m.: The broader markets were outperforming the benchmark indices. The BSE Mid-cap and small-cap indices were up 0.5 per cent each. Mphasis was the top gainer from the mid-cap space, up 3.4 per cent to Rs 558.60. MRPL, Indiabulls Housing Finance, HPCL, Bajaj Finserv, Sriram City Union Finance, Oberoi Realty and Oriental Bank of Commerce were also among the gainers, up 1.8-3.3 per cent each.

9.20 a.m.: The BSE Sensex opened nearly 60 points lower while the Nifty50 index fell as much as 20 points to 8,517.20. Auto, FMCG, infra shares witnessed buying while banks, IT and metals stocks saw profit booking.
Axis Bank was the top loser in the Nifty50 index, down over 2 per cent as it missed profit estimates in the Q1 on account of higher bad loans.

8.30 a.m.: The BSE Sensex and the broader Nifty50 index are likely to open flat on Monday, according to futures trading on the Singapore Exchange (SGX). The SGX Nifty traded 5.5 points or 0.06 per cent higher at 8,562.50 as of 08.14 a.m.

Indian stock markets are likely to get support from Asian stocks, which edged higher on hopes of a fresh round of Bank of Japan stimulus later this week. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 per cent to stand just below its nine-month peak hit on Thursday. Japan's Nikkei rose 0.4 per cent.

Meanwhile, US stock prices marked four straight weeks of gains last week, supported by renewed strength in the tech and telecom sectors and a stronger-than-expected report on manufacturing. The S&P 500 set another record closing high on Friday.

Foreign institutional investors continued their buying streak in domestic stock markets. On Friday, they bought cash shares worth Rs 438 crore. Domestic institutional investors however were net sellers to the tune of Rs 366 crore.

Corporate earnings will continue to be in focus, with companies such as Bajaj Corp, Canara Bank and Indiabulls Housing Finance, Info Edge reporting Q1 numbers today.

Private lender Axis Bank, which reported a surge in Q1 bad loans on Friday, is likely to make a weak start today. Axis Bank said net profit fell 21 per cent from a year earlier to Rs 1,556 crore, missing analysts' estimate.

Vedanta will also be in focus after it offered to sweeten the terms for taking over subsidiary Cairn India after an initial bid had been stymied for a year.

Under the new offer, Vedanta will give one share and four redeemable preference shares for each share in Cairn India. Earlier it was offering one share and one redeemable preference share for each Cairn share.

The Sensex had closed 93 points or 0.33 per cent higher at 27,803 on Friday, while the Nifty ended 31 points up at 8,541.

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HPCL Shares Hit 52-Week High On Bonus Issue

Shares of state-run Hindustan Petroleum Corporation (HPCL) surged over 8 per cent to a fresh 52-week high of Rs 1,215 on the National Stock Exchange on Thursday after the oil marketing company's board approved a 2:1 bonus issue.


"The board of directors of the company at its meeting held on July 20, 2016, inter alia, have considered and recommended increase in authorised share capital to Rs.2,500 crore and further recommended capitalisation of reserves and issue of fully paid bonus shares in the ratio of 2 bonus equity share of Rs. 10 each for every 1 existing equity share of Rs. 10 each," HPCL said in a release to Bombay Stock Exchange.

HPCL will seek the approval of its shareholders for the bonus issue in its forthcoming annual general meeting on September 8, 2016.

Bonus share are taken positively by the investor community as it shows management's confidence to service the additional equity (increase its profits and distribute dividends).

As of 11.24 a.m., HPCL shares traded 4.13 per cent higher at Rs 1,167.30 a piece compared to a flat Nifty.

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L&T Infotech Shares Make Weak Debut, Slump 6%

L&T Infotech shares made a weak debut in stock markets on Thursday, falling as much as 6.2 per cent to Rs 666 against their issue price of Rs 710. L&T Infotech, part of the diversified Larsen & Toubro group, joined the list of about a dozen other companies that have come out with their IPOs so far this year.

However, L&T Infotech bucked the trend of stellar listing-day gains seen in case of companies such as Dr Lal PathLabs, Alkem Labs, TeamLease Services, Thyrocare Tech and more recently Mahanagar Gas.

L&T Infotech is a midcap IT company, in the league of Tech Mahindra, Mindtree and Hexaware. Analysts attributed the weak listing of L&T Infotech shares to the current cautious sentiments around the IT sector.

Frontline IT companies such as TCS, Infosys and Wipro have missed Q1 earnings estimates, leading to a selloff in IT stocks. Midcap companies such as Mindtree have also reported weak numbers in the June quarter.

IT companies have reported sluggish revenue growth on account of global headwinds. Concerns around Britain's decision to exit the European Union have also hit IT stocks.

L&T Infotech had raised Rs 1,243-crore in its IPO. The company's IPO had attracted more than one million applications, the highest for any share sale offer in at least five years.

L&T Infotech shares traded 2 per cent lower at Rs 695.60 as of 10.15 a.m., underperforming the Nifty traded 0.1 per cent lower.

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VRL Logistics Shares Jump 20% As Promoters Cancel Airline Plan

VRL Logistics shares jumped 20 per cent on Thursday after the Hubli-based company's promoters withdrew their plan to launch a regional airline.

"There have been several developments including the announcement of the new aviation policy by the center. The regional connectivity related aspects listed in the said policy do not augur well with our planned business model envisaged for the proposed activity," said Vijay Sankeshwar, promoter of VRL Logistics, in a statement yesterday.

The decision to not go ahead with a regional airline is seen as a boost for VRL Logistics, whose shares have been under severe pressure since the plan was announced in May. VRL Logistics shares are down over 21 per cent since May 23, when the promoters had first announced the plan to launch a  regional airline.

G Chokkalingam of Equinomics told NDTV Profit that it is certainly a positive development and the management has been taught a lesson.

VRL Logistics promoters wanted to incorporate a separate company to start a regional airline. They wanted to sell a minority stake in VRL Logistics to raise Rs 1,400 crore for the airline, according to reports.

With the airline overhang out of the way, investors expect VRL Logistics promoters to focus on the core business, analysts said.

Mr Chokkalingam however advised investors against putting money in VRL Logistics shares. Valuations of many companies in the logistics sector are "super-rich" and hence not sustainable, he added.

VRL Logistics, which came out with its IPO in April 2015, had a spectacular listing last year. Its shares gained over 50 per cent (against issue price of Rs 205) on the day of listing. VRL Logistics made a 52-week high of Rs 479 in September last year.

As of 09.48 a.m., VRL Logistics shares traded 15 per cent higher at Rs 360, outperforming the broader market that traded lower.

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Sensex, Nifty Turn Flat; Energy Stocks Outperform

9.20 a.m.: The BSE Sensex and the Nifty turned flat after opening marginally higher. The Sensex gained as much as 70 points to 27,988.76 while the 50-shares Nifty added nearly 20 points to touch a high of 8,585.20.

Energy shares witnessed buying tracking overnight gains in the crude oil. Oil marketing companies like BPCL, IOC surged over 1 per cent each. Among the Nifty50 stocks Ambuja Cement was the top gainer, up 1.25 per cent followed by ACC and BPCL.

8.35 a.m.: The BSE Sensex and the broader Nifty are likely to open flat on Thursday, according to futures trade on the Singapore Exchange (SGX). The Nifty, which closed at 8,566 on Wednesday, traded 4.50 points lower at 8,584.50 on the SGX as of 08.20 a.m.

Domestic investors will be tracking quarterly earnings closely. The June quarter has not been impressive so far, with all big IT companies - TCS, Infosys and Wipro - missing estimates. Reliance Industries is the only big corporate to outperform so far.

Index heavyweight ITC and private lenders Kotak Bank and HDFC Bank will report their quarterly numbers today.

Meanwhile, global analysts continue to be bullish on India. CLSA's Laurence Balanco said today that India is leading the breakout among emerging markets and the recent surge has bullish implications. On Wednesday, Morgan Stanley has upped its Sensex target to 30,000.

Foreign institutional investors, who have been net buyers of domestic equities this month, purchased cash shares worth another Rs 215 crore on Wednesday. Domestic investors were net sellers to the tune of Rs 45 crore.

The Sensex and Nifty are likely to get psychological boost from Asian markets, which climbed to nine-month highs on Thursday.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent, its highest level since October 2015 after earnings overnight helped push both the Dow Jones industrial average and the S&P 500 to record highs.

"Investors are optimistic on the outlook for Asian equities compared to developed markets and despite the looming geopolitical uncertainty so we are advising clients to buy on dips," said a markets strategist at a U.S. bank in Hong Kong

Portfolio inflows to emerging market assets rose to the highest level in nearly three years last week, according to the latest survey by the Institute of International Finance.

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Anant Raj Surges 17% To 52-Week High On Demerger Nod

Anant Raj shares surged nearly 17 per cent to hit fresh 52-week high of Rs 55 on Wednesday after its board decided to demerge its real estate and project divisions.

In a statement to Bombay Stock Exchange, the Delhi-based property developer said its board has approved the demerger of real estate division of Anant Raj Agencies into Tauras Promoters & Developers and subsequent amalgamation of remaining of Anant Raj Agencies with the company.

Anant Raj's board also gave its nod to demerge the project division of the company into Anant Raj Global. After the demerger, Anant Raj Global will be listed separately on both BSE and NSE.

The project division of Anant Raj had reported revenue of Rs 138 crore last fiscal, which is 32 per cent of the total revenue of the company.

The project division of Anant Raj executes several projects related to construction of IT parks, residential projects, township projects, SEZ and commercial projects.

Anant Raj said the demerger of real estate and projects divisions will streamline the holding structure of the company.

As of 10.58 a.m., Anant Raj shares traded 12.85 per cent higher at Rs 53.15 apiece compared to 0.22 per cent gains in the broader Nifty.

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Aurobindo Pharma Surges 4% On US Approval For Cholesterol Drug

Aurobindo Pharma surged nearly 4 per cent to Rs 788 today after the drugmaker launched the Rosuvastatin Calcium Tablets in the US following approval from the American drug regulator.

Aurobindo Pharma said it has received final approval from the US FDA to manufacture and market Rosuvastatin Calcium Tablets.

Rosuvastatin Calcium is a cholesterol-lowering medicine.

Since Aurobindo is one of the first applicants to submit application for launching the drug, the pharma company is eligible for 180 days of generic drug shared exclusivity in the US, the Indian drugmaker said.

The product has an estimated annual market size of $6.7 billion.

In another development, global brokerage JP Morgan has initiated its coverage on the stock with an "overweight" rating for a target price of Rs 900 per share, indicating a potential upside of 18 per cent over Tuesday's closing price.

JP Morgan expects 18 per cent compound annual growth rate (CAGR) in its earnings over FY17-19. With improved execution, US market is likely to be the key growth driver for Aurobindo Pharma, the brokerage said. Debt reduction efforts to be another trigger for the stock over next two years, it added.

The brokerage expects Aurobindo Pharma's profit margin to expand by 150 basis points by FY18.

As of 10:32 a.m., shares of Aurobindo Pharma shares traded 3.1 per cent higher at Rs 784 apiece compared to 0.23 per cent gains in the broader Nifty index.

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Wipro Shares Sink 6% On Q1 Earnings: Five Things To Know.

Asia markets lost momentum on Wednesday, after a mixed finish in the U.S. as investors digested second-quarter earnings.

In Japan, the benchmark Nikkei 225 was down 0.64 percent, after finishing the Tuesday session at a six-week high. Across the Korean Strait, the Kospi was off by 0.19 percent. In Hong Kong, the Hang Seng index advanced 0.84 percent.

Chinese mainland markets traded mixed, with the Shanghai composite near flat at 3,035.87, while the Shenzhen composite gained 0.41 percent.

Australia's ASX 200 traded up 0.61 percent, with the materials sub-index lagging, down 1.40 percent. Miners remained in focus on the broader index as they released production reports.

Wipro shares slumped as much 5.7 per cent, following the IT major's June quarter earnings announcement after market hours on Tuesday. Wipro, India's third largest outsourcer, was the top loser in the Nifty50 index today.

Here are the reasons for the selloff in Wipro shares:

1) Wipro posted a net profit of Rs 2,052 crore in the June quarter, missing the Street estimates. Profit miss was on account of 190 basis point sequential dip in EBIT or operating margin to 17.8 per cent. Wipro's margins were hit by salary hikes and on account of its acquisition of Florida-based HealthPlan Services earlier this year. Wipro's bigger rivals TCS and Infosys had reported margins of 25.1 per cent and 24.1 per cent respectively in Q1.

2) Analysts expect Wipro's margin to dip further in Q2, before recovering in the second half of FY17. "Wipro believes that margins will recover in 2HFY17 as acquisitions become more profitable and more automation is brought to bear in projects of strategic accounts," said Nirmal Bang Securities.

3) Wipro forecast muted revenue growth for the September quarter, disappointing investors. Bengaluru-based Wipro expects Q2 revenue to rise by 0.1 per cent to 1 per cent sequentially, indicating major growth headwinds. Analysts said low revenue guidance for Q2 means Wipro will struggle to post a double-digit rise in revenue in the current fiscal.

4) Wipro warned that Britain's decision to leave the European Union could lead some customers to defer business over the medium term. This could hit Wipro's revenue growth in Europe from where the company gets 25 per cent of revenues.

5) Brokerages are not impressed by Wipro's performance in Q1. Emkay Global said Wipro remains its "least preferred" pick in the tier I space. Nirmal Bang Securities retained its "sell" call on Wipro (target Rs 478).

As of 09.40 a.m., Wipro shares traded 4.5 per cent lower at Rs 524.35, underperforming the broader Nifty that traded 0.25 per cent higher.

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Asia markets lose momentum; Nintendo shares tumble 17 pct

Asia markets lost momentum on Wednesday, after a mixed finish in the U.S. as investors digested second-quarter earnings.

In Japan, the benchmark Nikkei 225 was down 0.64 percent, after finishing the Tuesday session at a six-week high. Across the Korean Strait, the Kospi was off by 0.19 percent. In Hong Kong, the Hang Seng index advanced 0.84 percent.

Chinese mainland markets traded mixed, with the Shanghai composite near flat at 3,035.87, while the Shenzhen composite gained 0.41 percent.

Australia's ASX 200 traded up 0.61 percent, with the materials sub-index lagging, down 1.40 percent. Miners remained in focus on the broader index as they released production reports.

Symbol	Name	Price		Change	%Change
NIKKEI	NIKKEI	16685.52		-37.79	-0.23%
HSI	HSI	21863.20		190.00	0.88%
ASX 200	S&P/ASX 200	5479.60		28.35	0.52%
SHANGHAI	Shanghai	3035.79		-0.81	-0.03%
KOSPI	KOSPI Index	2012.60		-4.29	-0.21%
CNBC 100	CNBC 100 ASIA IDX	6533.41		19.70	0.30%

BHP Billiton released its production numbers for the fourth quarter and year ended June 30 and gave guidance for fiscal 2017, saying that Q4 iron ore production came in at 55,626 kilo tons (KT), down 7 percent on-year. Copper production was at 413 KT in Q4, down 5 percent on-year.

For fiscal 2017, BHP said it expected between 228 metric tons (MT) and 237 MT of iron ore production, excluding production from its Samarco mine, which was the site of a major dam-burst in Brazil in 2015.
BHP shares were down 3.03 percent, after narrowly missing analysts' expectations as a result of the Samarco disaster, which caused the mine to shut down. Other major miners were also lower, with Rio Tinto down 1.94 percent and Fortescue off 0.99 percent.

"Inklings of concern about China's support for its industrial sector are starting to hit metals prices, and commodity-linked sectors are exerting the biggest drag on equity indices globally," said Angus Nicholson, a market analyst at brokerage firm IG.
Shanghai steel rebar futures were mostly lower, but the August contract traded up 0.71 percent. Iron ore futures in Dalian traded lower, with the September contract down some 1.87 percent.

Nintendo shares took a 16.57 percent tumble on Wednesday, halting its impressive winning streak since the wildly popular "Pokemon Go" mobile app was released on July 6.

Technology news portal TechCrunch said the highly anticipated launch of the app in Japan, the birth place of Pokemon, has been delayed, after a previous report said the app was set to go live on Wednesday.

TechCrunch, citing sources, said game-maker Niantic decided to postpone the roll out of "Pokemon Go" in Japan after internal communication detailing the launch from McDonald's Japan, the game's sponsor, were leaked on the internet.

In the currency market, the dollar traded higher against a basket of currencies at 97.083, up from levels near 96.00 last week.

"The outperformance of the U.S. economy, safety of U.S. assets and steady monetary policy makes American investments attractive and keeps the dollar in demand," said Kathy Lien, managing director for foreign exchange strategy at BK Asset Management.

"We continue to look for the dollar to outperform, with further losses expected for many major currencies," she said.
The Japanese yen traded at 105.93 against the greenback, off an earlier session low of 106.25. The yen has weakened considerably from levels near 100 two weeks earlier, with the market anticipating upcoming fiscal and monetary stimulus from Japan.

The Australian dollar traded at $0.7502, down from Monday's level over $0.76, likely due to fresh concerns over China, said experts.

"Detailed Chinese GDP data underlined how much stimulus and credit to the industrial and construction sectors bailed out a weakening economy. This is not good news for the Aussie dollar," Nicholson said.

Oil prices advanced during Asian hours, with global benchmark Brent up 0.30 percent at $46.80 a barrel, while U.S. crude futures added 0.31 percent at $44.79.

The Dow Jones industrial average closed up 26 points, or 0.14 percent, at 18,559.01. The S&P 500 dropped 3.11 points, or 0.14 percent, to 2,163.78, while the Nasdaq composite finished 19.41 points lower, or 0.38 percent, to 5,036.37. 

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Jaiprakash Power Surges On Sale Of Plant To JSW Energy

Shares of Jaiprakash Power Ventures surged as much as 13 per cent to hit intraday high of Rs 6.90 after the company said it plans to sell its thermal power plant in Bina, Madhya Pradesh, to JSW Energy for Rs 2,700 crore.

Jaiprakash Power Ventures plans to sell a 500 MW thermal power plant, Bina Power Supply Ltd, to JSW Energy Ltd for Rs 2,700 crore including debt, both the companies said on Monday.

The companies signed a memorandum of understanding for the deal in September 2015.

The planned sale from Jaiprakash Power Ventures is considered positive by market participants as it will lead to lowering the company's debt.

Total debt of the company stood at Rs 23,000 crore at the end of financial year 2015.

As of 10:13 a.m., shares of Jaiprakash Power Ventures traded 7.4 per cent higher at Rs 6.52, outperforming the Nifty which was up 0.07 per cent.

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Asia markets mostly lower; shares of SoftBank, Line tumble 10 pct each

Asian markets were mostly lower on Tuesday, with shares of internet and telecommunication giant SoftBank tumbling around 10 percent after its $32 billion bid for a chip firm.

Japan's benchmark Nikkei 225 beat its regional peers to trade up 0.64 percent, with stocks receiving a boost from a relatively weaker yen, after the market was closed on Monday for a public holiday.

SoftBank shares, however, were down 10.55 percent as investors reacted to the company's announcement on Monday that it had agreed to acquire British semiconductor firm ARM Holdings in a deal worth $32 billion.

SoftBank's chairman and chief executive, Masayoshi Son, said the decision to acquire ARM was not motivated by a weaker pound, after the British currency fell in the aftermath of the U.K.'s decision to leave the European Union. Instead, Son said, it was about taking advantage of the "paradigm shift" seen in the internet-of-things technology.

Some analysts believed the $32 billion price tag was a bargain for SoftBank.

"ARMs purchase is a coup," Amir Anvarzadeh from BGC Securities told CNBC's "Squawk Box" on Tuesday. "It's probably the best semiconductor-related company in the world. They have 95 percent market share [in the smartphone architecture market], all of the processes that go into mobile architecture."

Analysts previously told CNBC that SoftBank would likely use the money raised from its divestiture plan, including selling off stakes in Alibaba, GungHo Online Entertainment and more recently in Finnish mobile gaming firm Supercell, to shore up its balance sheet.

In South Korea, the Kospi dropped 0.39 percent. In Hong Kong, the Hang Seng index was down 0.63 percent. Chinese mainland markets also traded lower, with the Shanghai composite down 0.71 percent and the Shenzhen composite off by 0.54 percent.

Australian shares were mixed, with the ASX 200 index down 0.34 percent. The materials sub-index was under pressure, dropping 0.53 percent as miners remain in focus as they release second-quarter production reports.

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Reliance Industries Shares Rise On Forecast-Beating Q1 Earnings

Reliance Industries shares jumped over 2 per cent on Monday, following the energy major's earnings beat in the June quarter. RIL's Q1 result was announced post market hours on Friday.

Reliance, which runs the world's biggest refinery at Jamnagar in Gujarat, posted a standalone net profit of Rs. 7,548 crore on sales of Rs. 53,496 crore in Q1. Net profit was up 18.5 per cent year-on-year, though net revenue declined 18.7 per cent on lower crude oil prices.

RIL's outperformance in Q1 was driven by refining segment, where EBIT increased 3 per cent quarter-on-quarter to Rs. 6,580 crore, led by robust refining margins, which offset fall in crude throughput due to a planned maintenance shutdown, said Kotak Institutional Equities.

Reliance, which gets 95 per cent of its profit from oil and petrochemicals, said gross refining margin on each barrel of crude processed was $11.5 in the June quarter, higher than $10.4 a year earlier.

"RIL's premium over Singapore benchmark margins expanded to $6.5/barrel from $3.1/barrel in the March quarter, highest in past eight years, led by benefits of $2/barrel on account of adventitious gains on crude inventory and hedging gains on product spreads," the brokerage said.

On a consolidated basis, Reliance Industries reported a net profit of Rs. 7,113 crore on sales of Rs. 71,451 crore in the June quarter. Analysts attributed the dip in consolidated profit to the implementation of new Indian Accounting Standards.

Apart from strong performance in the refining segment, RIL also posted strong numbers for its petchem business, with EBIT rising 7 per cent quarter-on-quarter to Rs. 2,900 crore, driven by strength in domestic demand, Kotak said.

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Sensex gains over 140 points ahead of monsoon session; RIL rises 2.2%.

9:45am: The 30-share S&P BSE Sensex is currently trading higher by 144.57 points, or 0.52%, to 27,981.07, while the Nifty 50 of the National Stock Exchange (NSE) rises 37.60 points, or 0.44%, to 8,579.
 
9:40am: Reliance Industries Ltd (RIL) rises 2.2% to Rs.1,034.85. RIL on Friday posted a higher-than-expected group profit in the three months ended June, helped by stronger margins in its core refining and petrochemicals business. The profit surpassed analyst expectations of Rs.6,515 crore, Reuters reported.

9:35am: The Indian rupee on Monday weakens against the US dollar, while 10-year bond yield gained after Reserve Bank of India (RBI) governor Raghuram Rajan ruled out a rate cut in the next policy meeting.

9:30am: India’s 10-year bond yield is trading at 7.282%, compared with Friday’s close of 7.272%.

9:25am: The dollar rises to ¥105.52 from Friday’s ¥104.81. The euro edges up to $1.1062 from $1.1037.

9:20am: Benchmark US crude adds 2 cents to $45.97 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude advances 20 cents to $47.81 per barrel in London.

9:10am: The Shanghai Composite Index loses 0.5% to 3,038.69 points while Sydney’s S&P-ASX 200 rises 0.5% to 5,455.20. Hong Kong’s Hang Seng is up 0.1% to 21,674.28 and Seoul’s Kospi is unchanged at 2,017.13. Japanese markets are closed for a holiday. Benchmarks in Singapore and New Zealand gain while the Philippines and Indonesia retreat.

9:00am: Asian stock markets are trading mixed on Monday after Wall Street ended the week up, a Turkish military coup failed and China reported better economic data.

8:50am: The Dow Jones industrial average gained 10.14 points, or 0.1%, to 18,516.55. The Standard & Poor’s 500 index slipped 2.01 points, or 0.1%, to 2,161.74. The Nasdaq composite lost 4.47 points, or 0.1%, to end at 5,029.59.


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Oil Falls As Glut Fears Return, China Data Eyed

 Crude futures fell in early trading in Asia on Friday as concerns about a global oil glut returned to the fore and traders wait on data from China, which is expected to report its lowest growth rate since 2009.

Brent crude futures were down 41 cents at $46.96 a barrel at 0024 GMT. On Thursday they settled up $1.11, or 2.4 percent, at $47.37 a barrel, supported by short covering.

U.S. West Texas Intermediate (WTI) was down 40 cents at $45.28 a barrel. The contract rose 93 cents, or 2.1 percent, to end at $45.68 a barrel in the previous session.

China is expected to post its weakest quarterly economic growth since the global financial crisis on Friday, raising pressure on policymakers to take more steps to bolster demand. The data is due at 0200 GMT.

While fears of a hard landing in China have eased, investors fear a further slowdown and any major fallout from Britain's decision to leave the EU earlier this month would leave the world even more vulnerable to the risk of a global recession.

That would push demand for oil and its products down further amid indications of a persistent oversupply, which were reinforced this week by the International Energy Agency and the U.S. official energy think tank.

Both the IEA and the Energy Information Administration issued reports and data showing that an oil glut which sent prices crashing from the northern hemisphere's summer of 2014 through to early this year is not clearing as early as many had expected.

Data on Thursday from market intelligence firm Genscape showed a 171,511-barrel build at the Cushing, Oklahoma delivery hub for WTI futures during the week to July 12, traders said.

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Sensex Falls Over 150 Points After Infosys Disappoints In Q1

10:20 a.m.: Infosys has cut its revenue guidance for FY17 causing a huge downfall in Infosys shares.

10:14 a.m.: IT stocks were witnessing heavy selling pressure after Infosys disappointed in its first quarter earnings. The BSE IT index slumped 4 per cent; Infosys was the top loser, down 10 per cent to Rs 1,082. TCS, Tech Mahindra, Wipro and HCL Technologies also fell upto 3 per cent each.

9:56 a.m.: The stock markets came off the day's high on selling in power and oil & gas stocks. Sensex retreated from levels of 28,000 and was trading 13 points higher at 27,955 and Nifty was at 8,569, up 4 points.

9:24 a.m.: Sensex and Nifty edged higher in opening deals on Friday but the gains were capped on the back of selling in IT major TCS after it gave cautious commentary despite posting better-than-expected first quarter numbers.

As of 9:21 a.m., Sensex was at 28,010, up 68 points or 0.24 per cent and Nifty was at 8,582, up 17 points.

In early trading, buying interest was seen in FMCG, consumer durables, auto, banking and IT stocks.

At the same time, some power stocks were witnessing selling pressure.

From Nifty basket of stocks, 37 were advancing while 14 were declining.

Adani Ports was the top Nifty gainer, up 2 per cent to Rs 221.35. Idea Cellular, Bank of Baroda, ITC, Hindustan Unilever, Bharti Infratel, Asian Paints and State Bank of India were also among the gainers.

On the other hand, TCS was among the top Nifty losers, down 0.6 per cent to Rs 2,506. NTPC, Kotak Mahindra Bank, HDFC, BHEL, Coal India and Tata Motors were also among the losers.

The broader markets were outperforming the benchmark indices. The BSE mid-cap index was up 0.6 per cent and the small-cap index jumped 0.23 per cent.

7:58 a.m.: Sensex is set for a strong start in trades today while Nifty is likely to move above its important psychological hurdle of 8,600 tracking gains on Nifty futures traded on Singapore Stock Exchange amid strong global markets.

The Nifty futures on the Singapore Exchange traded 0.39 per cent or 33.50 points higher at 8,614.

Meanwhile, Asian shares rose to eight-month highs on Friday, on track for solid weekly gains, as record highs on Wall Street offset the impact on sentiment of an attack in France that lifted the safe-haven yen.

Japan's Nikkei advanced 1 per cent, Hong Kong's Hang Seng was up 0.4 per cent and South Korea's KOSPI jumped 0.6 per cent.

Overnight, two major U.S. stock indexes set fresh record closing highs on Thursday on investors' optimism about big banks' second-quarter earnings, while European shares also rose and oil prices rebounded from the previous session's bruising losses.

The benchmark S&P 500 ended at 2,163.75, its fourth straight record closing high after hitting a record intraday peak of 2,168.99. The Dow Jones industrial average closed at 18,506.41, its third straight record close after touching a record intraday high of 18,537.57.

Back home, foreign institutional investors bought shares worth Rs 870 crore while domestic institutional investors sold shares worth Rs 874 crore on Thursday.

Meanwhile, TCS is expected to lead gains in the benchmark indices after the company reported better-than-expected first quarter earnings.

The IT major on Thursday posted a net profit of Rs 6,317 crore on sales of Rs 29,305 crore in the June quarter, beating the Street's estimates. This is the second time when TCS surpassed profit estimates, after earlier missing estimates for six straight quarters.

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TCS Profit Beat Fails To Excite Investors, Shares.

 Tata Consultancy Services shares came under selling pressure on Friday, despite India's biggest outsourcer reporting better-than-expected profit in the June quarter. TCS on Thursday posted a net profit of Rs 6,317 crore on sales of Rs 29,305 crore in the June quarter.

Though a number of brokerages retained their "bullish" outlook on TCS, domestic brokerage Kotak Securities downgraded TCS to "reduce", saying the composition in growth is worrying. TCS stock price leaves no upside from the current levels, it added.

Meanwhile, TCS management sounded cautious about the demand environment, which also weighed on the stock, traders said. According to the management commentary, the key banking, financial services and insurance (BFSI) vertical is likely to remain sluggish due to weakness in macro environment.

CLSA maintained its "outperform" rating on TCS, saying the company posted "in-line" revenues despite BFSI dampener.

Credit Suisse, which has an "outperform" rating on TCS, said the company was "light" on revenue, but better on margins. FY17 revenue growth is likely to be below 11 per cent, it added.

As of 09.32 a.m., TCS shares traded 0.7 per cent lower at Rs 2,503, underperforming the broader Nifty that was up 0.2 per cent.

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Kwality Surges 6%, KKR To Infuse Rs 520 Crore

 Shares of Kwality Ltd jumped as much as 6 per cent to hit intraday high of Rs 118.35 after the dairy company said that it has received funding commitment of Rs 520 crore from private equity firm KKR.

Delhi-based Kwality said the "proceeds shall be utilized to fund capex to further strengthen milk procurement infrastructure solely for high-margin value-added product categories including cheese, paneer, table butters, tetra-packs, flavoured milk and yoghurt among others".

The company plans to roll out a series of such products in the near future, it added.

Kwality Limited has six milk processing units in Uttar Pradesh, Haryana, Uttarakhand, and Rajasthan, has milk processing capacity of over 3.2 million litres per day.

As of 10:49 a.m., shares of Kwality Ltd traded 4.48 per cent higher at Rs 116.50, outperforming the Nifty which was down 0.05 per cent.

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Indiabulls Group Shares Fall On Reports Of Tax Raids

Shares of Indiabulls group companies Indiabulls Wholesale Services, Indiabulls Housing Finance, Indiabulls Ventures and Indiabulls Real Estate fell between 5 per cent and 10 per cent on report that the Income Tax Department has raided Indiabulls offices across the country.

Meanwhile, the Bombay Stock Exchange has sought for clarification from Indiabulls on report of tax raids at its offices.

As of 11:26 a.m., shares of Indiabulls Real Estate (down 8.45 per cent to Rs 87.80), Indiabulls Ventures (down 8 per cent to Rs 31.50), Indiabulls Housing Finance (down 5.8 per cent to Rs 701) and Indiabulls Wholesale Services (down 4.86 per cent to Rs 28.40) were underperforming the Nifty, which was down 0.26 per cent.

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