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HINDUJA BANK (SWITZERLAND) LTD
BUILDING WEALTH, ENABLING ENTERPRISE
7 April 2015
DAILY MARKET COMMENTS – INDIA
SUMMARY
Marginal recovery in rate sensitive shares in late trades helped markets recoup intra-day losses to
finally end flat even as the Reserve Bank of India (RBI) at its policy meet early today maintained
status quo on key rates. The 30-share Sensex ended up 12 points at 28,517 while the 50-share Nifty
ended nearly unchanged at 8,660. Reserve Bank Governor Raghuram Rajan on Tuesday held repo rate
unchanged at 7.5%, as expected. Financial shares ended mixed on concerns of slowdown in
incremental credit growth amid high interest rates. Auto stocks ended mixed on concerns that
customers would postpone their vehicle purchases in the wake of high cost of auto loans. Tata Motors
and Hero MotoCorp ended down 0.9-1.3% each while M&M gained 2.7% and Bajaj Auto rebounded
after a decline in yesterday’s trade on reporting a 22% drop in motorcycle sales. Buying interest was
seen in metal stocks with Sesa Sterlite, Tata Steel and Hindalco up between 2-5% each. Larsen &
Toubro ended up 1% after the engineering major said its construction arm has bagged orders worth Rs
54.92 bn across various segments in March. SKS Microfinance surged nearly 9% in an otherwise
weak market after the RBI raised the borrowing limits relating to total indebtedness of the borrower.
HIGHLIGHTS
IN THE HEADLINES TODAY
Markets shrug off RBI neutral stance; L&T up 1%, NTPC up 3%
RBI leaves repo rate unchanged at 7.5%
RBI governor puts onus on banks to transmit policy rates
Rural Electrification Corporation dips ahead of offer for sale issue
Glenmark gets USFDA nod for osteoporosis drugs
BNY Mellon sells shares worth over Rs 230 mn in Apollo Hospitals
Demand notices on foreign investors not retrospective: govt
INSTITUTIONAL ACTIVITY ON NSE, BSE & MCX-SX
Category
Buy Value (Rs bn)
Sell Value (Rs bn)
Net Value (R bn)
Foreign Institutional Investors (FII)
37.19
35.75
1.44
Domestic Institutional Investors (DII)
12.60
15.86
(3.26)
GENEVA
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INDEX MOVEMENTS
Prev.
Close
Open
High
Low
Close
S&P BSE Sensex
28,504
28,582
28,641
28,274
28,517
12.13
0.04
CNX Nifty
8,660
8,684
8,694
8,587
8,660
0.40
0.00
CNX 500
7,127
7,149
7,158
7,084
7,144
17.65
0.25
CNX Nifty Junior
19,820
19,885
20,059
19,759
20,028
208.00
1.05
CNX Midcap
13,274
13,323
13,398
13,247
13,390
115.60
0.87
CNX IT
11,969
11,999
12,062
11,882
11,989
20.10
0.17
CNX 100
8,688
8,714
8,724
8,625
8,703
14.35
0.17
BANK Nifty
18,605
18,667
18,670
18,352
18,469
(136.15)
(0.73)
Curr.
Price
Prev.
Price
Loss
(%)
Index
NIFTY GAINERS
Gain / Loss
Var. (%)
NIFTY LOSERS
Curr.
Price
Prev.
Price
TATASTEEL
334
318
5.12
IDFC
172
175
(2.11)
SSLT
198
192
3.55
AXISBANK
559
569
(1.76)
NTPC
157
152
3.02
SUNPHARMA
1,150
1,169
(1.65)
M&M
1,276
1,243
2.70
TATAMOTOR
561
568
(1.26)
BAJAJ-AUTO
2,091
2,036
2.69
HEROMOTOC
2,641
2,673
(1.20)
Company
Gain
(%)
COMMODITIES & CURRENCIES
ASIAN MARKETS
Index
Closing
Gain /
Loss
Var.
(%)
57.82
Hang Seng
25,276
-
-
1,218.60
1,211.10
Nikkei-225
19,640
242.56
1.25
17.11
16.86
Shanghai
Composite
3,961
97.45
2.52
Straits Times
3,466
12.71
0.37
Taiwan TAIEX
9,642
41.58
0.43
Commodity (Futures)
Prev.
Day
Curr. Day
Brent Crude (USD / bbl)
58.12
Gold (USD / t. Oz)
Silver (USD / t. Oz)
Currency
Curr. Rate
USD / INR
62.32
EUR / INR
67.63
100 Yen / INR
51.84
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Company
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GLOBAL MARKET OVERVIEW
European stocks edged higher today, 7 April 2015, as investors returned from the long holiday break
and followed up on a rally in the US fueled by interest-rate expectations. Asian markets rose today, 7
April 2015, after overnight gains in US stocks. Key indices in Indonesia, South Korea, Japan, China,
Singapore, and Taiwan rose by 0.03% to 2.52%.
GLOBAL NEWS
Markit Economics said today that the growth rate of the eurozone economy continued to
improve in March. At 54, up from 53.3 in February, the final Markit Eurozone PMI Composite
Output Index rose to an 11-month high and its joint-highest level for almost four years.
Greek lawmakers voted early Tuesday in favour of a parliamentary probe into the circumstances
concerning Greece's resort to a bailout programme in May 2010 and the painful austerity
policies introduced ever since. "We need to shed light onto the dark aspects of the past five
years," Xinhua news agency quoted Greek Prime Minister Alexis Tsipras as saying in the
plenary session. He argued that Greek people demanded answers and it was a fundamental step
to restore citizens' trust in the political system.
FedEx Corp is seeking to buy Dutch package delivery firm TNT Express for an agreed 4.4
billion euros ($4.8 billion), aiming to succeed where United Parcel Service failed two years ago
when its bid was blocked by competition regulators. FedEx and TNT said on Tuesday they did
not expect significant opposition from regulators. Unlike FedEx, UPS already had a strong
European network when it bid for TNT.
ECONOMIC AND POLITICAL NEWS
The RBI in its first bi-monthly monetary policy statement for 2015-16 kept the repo rate
unchanged at 7.5%. Also, the cash reserve ratio (CRR) was unchanged at 4%. Rajan has cut the
repo rate by 25 bps twice this calendar year, once in January and again in March, both outside of
the policy review cycle. The central bank, however, pointed out that neither of those rate cuts
have been passed on. "Transmission of policy rates to lending rates has not taken place so far
despite weak credit off take and the front loading of two rate cuts... With little transmission, and
the possibility that incoming data will provide more clarity on the balance of risks on inflation,
the Reserve Bank will maintain status quo in its monetary policy stance in this review," it said.
The government today rejected suggestions that tax notices to Foreign Institutional Investors
(FIIs), which have created a controversy, amounted to retrospective taxation. Highly-placed
sources in the government said the notices to foreign institutional and portfolio investors are a
genuine demand and cannot be compared with retrospective taxation. It is one thing to talk
about retrospective taxation and complain about it. It is another seeking retrospective exemption
from what has to be legitimately paid to the exchequer, the sources said. They maintained that
the current demand of 20 per cent minimum alternate tax (MAT) on capital gains made by the
foreign investors is what is genuinely due to the government.
India's wheat output prospects in 2015 appeared to have been hit by unseasonal rains during the
harvest season, farm minister Radha Mohan Singh said on Tuesday. In February, the farm
ministry's initial estimate put this year's wheat production at 95.76 million tonne compared with
95.85 million tonne in 2014. India bought up to 80,000 tonne of Australian wheat in recent
deals, the biggest such imports by the country in five years due to unseasonal rains.
GENEVA
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LUCERNE
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LUGANO
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6901 Lugano
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T. +41 91 910 43 43
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ZURICH
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Switzerland
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INDUSTRY NEWS
Good times are back for India's equity fund managers after six long years. They pumped in a
record sum in shares in the financial year 2014-15. With surplus cash inflows from investors
throughout the year, they never had a dearth of money to buy stocks. Their net investment
touched a whopping Rs 400 bn. This is not only the highest in sector's history but almost
equivalent to what they put in the last bull run from 2003-04 to 2007-08 during which BSE's
benchmark index Sensex rose from levels of 3,200 to 20,800.
SECTOR PERFORMANCE AND TRENDS
Out of 2855 scrips traded over BSE, 1631 advanced & 1127 declined.
Sector
Var (%)
S&P BSE AUTO
S&P BSE BANKEX
Sector
0.08
Auto
(0.71)
BFSI
S&P BSE CONSUMER
DURABLES
0.66
S&P BSE CAPITAL GOODS
0.45
S&P BSE FMCG
0.64
Trend *
Construction
Consumer Goods
S&P BSE HEALTHCARE
(0.19)
S&P BSE IT
0.32
S&P BSE METAL
2.20
S&P BSE OIL & GAS
0.05
S&P BSE POWER
0.93
S&P BSE REALTY
(1.62)
S&P BSE TECK
Energy
Industrial Manufacturing
IT
Metals
Telecom
* Shows trend for current and previous trading session
0.44
BONDS, T-BILLS & IPOs
The Reserve Bank of India (RBI) is considering allowing companies to raise rupee debt
offshore, it said on Tuesday, noting strong demand for such debt following issues by Asian
Development Bank and International Finance Corp. The RBI said it was in talks with the
government to make it easier for international financial institutions like ADB and IFC, a World
Bank financing arm, to raise more funds for Indian infrastructure projects via offshore rupeedenominated bond sales.
The government plans to sell 49.37 million equity shares, representing 5% of the total paid up
equity share capital, in REC on Wednesday, 8 April. “The offer shall take place during trading
hours on a separate window of the stock exchanges and shall commence on 8 April,” REC said
in a filing to BSE. The government will announce the base price for the stake sale today post
market hours. The retail investors will be allocated offer shares at a discount of 5% of the bid
price.
GENEVA
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1204 Geneva
Switzerland
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LUCERNE
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6003 Lucerne
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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
Gold steadied below a seven-week high on Tuesday as the dollar regained momentum, although
uncertainty about the timing of a US interest rate hike kept bullion above $1,200 an ounce.
Oil futures fell on Tuesday from overnight gains of nearly 6 per cent after Goldman Sachs said
prices needed to remain low for months to achieve a slowdown in US output growth.
Benchmark crude prices surged on Monday as traders reassessed how quickly Iran might
increase exports after a preliminary nuclear deal and judged that a months-long rise in US crude
inventories may be slowing.
COMPANY ANNOUNCEMENTS
Glenmark Pharmaceuticals today said it has received the final approval from the United States
Food and Drug Administration (USFDA) for sale of drugs meant to prevent post-menopause
osteoporosis. The approval for sale of Norethindrone Acetate and Ethinyl Estradiol tablets was
given to Glenmark Generics Inc USA, a subsidiary of Glenmark Generics Ltd.
Apollo Hospitals today said Bank of New York Mellon Corporation (BNY Mellon) has sold
shares worth over Rs 230 mn in the group. Post the sale, BNY Mellon's stake in Apollo
Hospitals Enterprises has come down to 3.13 per cent from the earlier 3.24 per cent.
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
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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