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HINDUJA BANK (SWITZERLAND) LTD
BUILDING WEALTH, ENABLING ENTERPRISE
9 March 2015
DAILY MARKET COMMENTS – INDIA
SUMMARY
Benchmark share indices ended near one-month low, tracking a sell-off in global stocks, with bank
and information technology shares leading the decline. Further, fears of foreign fund outflows in the
short term amid sooner-than-expected hike interest rates by the US Fed in wake of robust jobs data
also dampened sentiment. The 30-share Sensex ended down 604 points at 28,845 and the 50-share
Nifty ended down 181 points at 8,757. The Bank Nifty ended down 602 points at 19,146. ICICI Bank,
HDFC Bank and Axis Bank ended down 2.4-4.3% each. The Indian rupee was trading sharply lower
to the US dollar after the greenback rallied against other currencies on expectations of that the US Fed
would hike interest rates sooner-than-expected. IT shares also witnessed profit taking despite the
weakening rupee after TCS flagged that growth in the March quarter would remain in-line with last
year trend adding that cross currency headwinds would impact rupee revenue by 275 basis points and
dollar revenue by 200 basis points. TCS ended down 2%, Infosys slipped 2.7% and Wipro ended
down over 1%. Hindustan Unilever ended up 3.8% on defensive buying. Metal shares were also
trading lower on fears that higher rates paid to acquire coal mines would hurt margins going forward.
HIGHLIGHTS
IN THE HEADLINES TODAY
Sensex, Bank Nifty slump over 600 points on weak global cues
Sun Pharma, Ranbaxy hit fresh high on Punjab & Haryana High Court nod for merger
Q4 to be muted says TCS
Hindustan Unilever hits new high
RBI to hold rates on April 7, says poll
BHEL commissions 660 MW thermal unit in Bihar
Suven Life Sciences gets patents for neuro-degenerative drug
INSTITUTIONAL ACTIVITY ON NSE, BSE & MCX-SX
Category
Buy Value (Rs bn)
Sell Value (Rs bn)
Net Value (R bn)
Foreign Institutional Investors (FII)
57.52
49.14
8.38
Domestic Institutional Investors (DII)
14.86
15.21
(0.35)
GENEVA
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LUGANO
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ZURICH
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INDEX MOVEMENTS
Prev.
Close
Open
High
Low
Close
Gain / Loss
S&P BSE Sensex
29,449
29,317
29,321
28,800
28,845
(604.17)
(2.05)
CNX Nifty
8,938
8,891
8,891
8,740
8,757
(181.00)
(2.03)
CNX 500
7,303
7,267
7,267
7,162
7,172
(131.85)
(1.81)
CNX Nifty Junior
19,975
19,899
19,959
19,690
19,722
(252.50)
(1.26)
CNX Midcap
13,350
13,292
13,315
13,159
13,175
(174.25)
(1.31)
CNX IT
12,666
12,600
12,600
12,372
12,422
(243.25)
(1.92)
CNX 100
8,934
8,889
8,889
8,749
8,763
(170.30)
(1.91)
BANK Nifty
19,748
19,545
19,545
19,113
19,146
(602.45)
(3.05)
Curr.
Price
Prev.
Price
Loss
(%)
Index
NIFTY GAINERS
Var. (%)
NIFTY LOSERS
Curr.
Price
Prev.
Price
JINDALSTEL
194
186
4.56
SSLT
198
210
(5.62)
HINDUNILVR
972
940
3.44
HINDALCO
141
148
(5.06)
LUPIN
1,870
1,838
1.73
AXISBANK
590
617
(4.35)
DRREDDY
3,465
3,442
0.67
ICICIBANK
333
348
(4.33)
SUNPHARMA
1,042
1,039
0.30
GAIL
386
403
(4.29)
Var.
(%)
Company
Gain
(%)
COMMODITIES & CURRENCIES
ASIAN MARKETS
Index
Closing
Gain /
Loss
59.49
Hang Seng
24,123
40.95
0.17
1,164.30
1,173.80
Nikkei-225
18,790
180.45
0.95
15.81
15.91
Shanghai
Composite
3,302
61.22
1.89
Straits Times
3,421
14.36
0.42
Taiwan TAIEX
9,563
82.79
0.86
Commodity (Futures)
Prev.
Day
Curr. Day
Brent Crude (USD / bbl)
59.73
Gold (USD / t. Oz)
Silver (USD / t. Oz)
Currency
Curr. Rate
USD / INR
62.65
EUR / INR
68.07
100 Yen / INR
51.79
GENEVA
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Company
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LUGANO
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ZURICH
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F. +41 44 380 05 91
GLOBAL MARKET OVERVIEW
European stocks dropped today, 9 March 2015, falling in line with lower Asian stocks as strong US
jobs data fanned expectations that the Federal Reserve will consider hiking rates in June 2015. Asian
stocks buckled while the dollar held firm on Monday after strong US jobs data fanned expectations
that the US Federal Reserve may raise interest rates sooner than previously thought. Key indices in
Hong Kong, Japan, South Korea, Indonesia, Taiwan and Singapore were off 0.17% to 1.27%. In
mainland China, the Shanghai Composite was up 1.89%.
GLOBAL NEWS
The European Central Bank (ECB) is set to begin its long-awaited 1.1 trillion euro ($1.2 trillion)
quantitative easing programme today, 9 March 2015, to stimulate growth and ward off deflation
across the eurozone. The programme calls for the eurozone central bank to buy around 60
billion euros of public and private bonds each month -- a policy it will apply until at least
September 2016.
The ECB on Thursday, 5 March 2015, left its main rate, the one that it charges on its regular
bank loans, at a record low of 0.05%. It also kept its deposit rate at minus 0.2%, meaning that
banks pay to park excess cash at the central bank. The Bank of England also on Thursday, 5
March 2015, kept interest rates on hold, marking the sixth anniversary of ultra-loose monetary
policy.
China's exports picked up in the first two months of 2015, propelled by February's exceptionally
strong performance that was inflated by the timing of Lunar New Year, while a slide in imports
pointed to persistent weakness in the economy. Data released by the General Administration of
Customs on Sunday, 8 March 2015, showed that China posted a record trade surplus of $60.6
billion last month. February exports jumped 48.3% from a year earlier, the strongest rise since
May 2010 and comfortably beat market expectations, but customs office cautioned about
reading too much into the figure given seasonal distortions. A 20.5% slide in February imports
was the sharpest since the global financial crisis.
In Japan, the latest revised data showed that the nation's gross domestic product rose an
annualised 1.5% in the October-December quarter, less than the preliminary reading of a 2.2%
increase as capital expenditure weakened. On a quarter-on-quarter basis, the economy grew
0.4% in the fourth quarter, the Cabinet Office data showed.
ECONOMIC AND POLITICAL NEWS
The Reserve Bank of India (RBI) will lower interest rates further over the coming year but only
gradually, wary that subdued inflation may pick up again, according to economists polled by
Reuters, who gave only a one-in-three chance it would act again in April. The RBI is among a
growing number of global central banks which have recently eased policy, after a steep drop in
crude oil prices since June fuelled fears of deflation in many economies. Governor Raghuram
Rajan surprised markets last week by cutting the repo rate to 7.50%, its second mid-meeting cut
since January.
The Finance Ministry is trying to revive plans for initial public offerings in three Central Public
Sector Enterprises (CPSEs), namely Hindustan Aeronautics (HAL), Rashtriya Ispat Nigam Ltd
(RINL) and THDC India Ltd, as it aims to achieve a budgeted disinvestment target of Rs 695 bn
for 2015-16. A proposed 10% IPO in HAL has been discussed for the past two years, and RINL
and THDC public debuts, each 10%, were considered last fiscal as well. None of these plans
saw a resolution for a number of reasons.
GENEVA
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1204 Geneva
Switzerland
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LUCERNE
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6003 Lucerne
Switzerland
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F. +41 41 227 52 62
LUGANO
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6901 Lugano
Switzerland
T. +41 91 910 43 43
F. +41 91 923 55 73
ZURICH
Florastrasse 7
8008 Zurich
Switzerland
T. +41 44 388 45 45
F. +41 44 380 05 91
INDUSTRY NEWS
Directorate General of Civil Aviation has asked airlines and airports to take steps to reduce fuel
burn and control emissions by devising efficient flight procedures, reducing aircraft weight and
use renewable energy. These measures are part of draft regulations on climate change initiatives
and local air quality monitoring in civil aviation. While total number of aircraft movements in
India increased by 3.6% in 2013 over 2012, carbon emissions per flight reduced 0.22% (8706
kilograms to 8687 kilograms), according to a DGCA study. This was as a result of fuel saving
measures and induction of new efficient planes.
SECTOR PERFORMANCE AND TRENDS
Out of 2976 scrips traded over BSE, 950 advanced & 1921 declined.
Sector
Var (%)
Sector
S&P BSE AUTO
(1.08)
Auto
S&P BSE BANKEX
(3.01)
BFSI
S&P BSE CONSUMER
DURABLES
(0.28)
S&P BSE CAPITAL GOODS
(2.74)
S&P BSE FMCG
(0.74)
Trend *
Construction
Consumer Goods
S&P BSE HEALTHCARE
0.30
S&P BSE IT
(2.06)
S&P BSE METAL
(2.40)
S&P BSE OIL & GAS
(1.67)
S&P BSE POWER
(2.93)
S&P BSE REALTY
(2.58)
S&P BSE TECK
(1.92)
Energy
Industrial Manufacturing
IT
Metals
Telecom
* Shows trend for current and previous trading session
BONDS, T-BILLS & IPOs
Foreign institutional investors investing in top-rated Indian corporate bonds is nothing unusual,
but what's heartening is that now they are willing to go the distance with long-term bets. This is
largely due to RBI measures in recent times — a cap on short-term investment and surprise rate
cuts. Earlier, RBI had restricted FII in corporate bonds with less than three-year maturities, a
move that was aimed at having long-term money rather than unsustainable 'hot money'. FIIs
used to bet on one-to-three year maturities.
As many as 30 small and medium enterprises (SMEs) got listed on the stock market, raising Rs
2.36 bn, in the first 10 months of the current financial year. In comparison, only 26 SMEs had
launched initial public offers (IPO) and had raised a total of Rs 2.57 bn in the April-January
period of 2013-14, as per the Sebi data.
GENEVA
Place de la Fusterie 3bis
1204 Geneva
Switzerland
T. +41 58 906 08 08
F. +41 58 906 08 00
LUCERNE
Pilatusstrasse 35
6003 Lucerne
Switzerland
T. +41 41 227 52 52
F. +41 41 227 52 62
LUGANO
Via Serafino Balestra 5
6901 Lugano
Switzerland
T. +41 91 910 43 43
F. +41 91 923 55 73
ZURICH
Florastrasse 7
8008 Zurich
Switzerland
T. +41 44 388 45 45
F. +41 44 380 05 91
COMMODITIES
Brent crude fell towards $59 a barrel on Monday as a promising US jobs report pushed the
dollar up, offsetting geopolitical tensions and the threat of output cuts in Libya and Iraq. The
dollar hit a more than 11-year high against a basket of currencies after data showed the US
unemployment rate fell to the lowest since May 2008 in February, making commodities priced
in the greenback costlier for holders of other currencies.
COMPANY ANNOUNCEMENTS
Tata Consultancy Services has conveyed to brokerages that its revenue growth in the March
quarter would be muted, thanks to the impact of cross-currency movement. The company has
been leading the sector's growth even as growth of the sector's bellwether slipped to single digits
over the last few years. While the revenue growth in constant currency is expected to be in line
with corresponding quarter of the previous year (1.9% quarter on quarter growth in December
FY14), the company expects cross currency movement to impact revenue growth.
State-run BHEL has commissioned another 660 MW super-critical or energy efficient unit of
NTPC's Barh thermal power project in Bihar. Meanwhile, the company said it is currently
executing orders for 36 sets of super-critical boilers and 31 sets of super-critical turbine
generators, which are in various stages of execution.
Pharmaceutical firm Suven Life Sciences has been granted a patent each by Eurasia and Israel
for drug used in the treatment of neuro-degenerative diseases. Neuro-degenerative ailments
include Alzheimer's disease, Schizophrenia and Parkinson's disease.
The information in this publication was developed using data which Hinduja Bank (Switzerland) Ltd assumes to be accurate; nevertheless,
Hinduja Bank (Switzerland) 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.
GENEVA
Place de la Fusterie 3bis
1204 Geneva
Switzerland
T. +41 58 906 08 08
F. +41 58 906 08 00
LUCERNE
Pilatusstrasse 35
6003 Lucerne
Switzerland
T. +41 41 227 52 52
F. +41 41 227 52 62
LUGANO
Via Serafino Balestra 5
6901 Lugano
Switzerland
T. +41 91 910 43 43
F. +41 91 923 55 73
ZURICH
Florastrasse 7
8008 Zurich
Switzerland
T. +41 44 388 45 45
F. +41 44 380 05 91