Markets gain for the thrid straight session; Nifty ends above 7,750

Markets gained for the third straight day as market players seem to have already discounted the much expected US interest rate hike that is due later today. The rally in the Market was led by oil & gas and energy shares.

Provisionally, the S&P BSE Sensex has climbed 169 points to trade at 25,490 and the Nifty50 has gained 52 points to quote at 7,752

Markets have maintained an uptrend in the late afternoon trades and are heading towards the third straight session of gains as market players seem to have already discounted the much expected US interest rate hike that is due later today.

By 2:45 pm, the S&P BSE Sensex has climbed 205 points to trade at 25,525 and the Nifty50 has gained 60 points to quote at 7,761.

The two day FOMC meet of the US Federal Reserve will conclude today in which the Fed Chair Janet Yellen is widely expected to announce the hike in the interest rates for the first time in almost a decade. 

In another major development for the day, the Supreme Court of India has banned the registration of all new diesel cars with over 2000 cc capacity in Delhi-NCR till March 31st, 2016. As a step to curb pollution in the capital city, the apex court has also ordered that the taxis in Delhi be converted to CNG by March 31, 2016.

Following the order, the shares of CNG manufacturers are trading higher. Everest Kanto Cylinder has surged 16% on the BSE while Nitin Fire Protection Industries has climbed 1%

Meanwhile, while speaking at the Rajya Sabha, Finance Minister Arun Jaitley said the government will achieve its fiscal deficit target without any cuts in the government spending.

On the macro-economic front, India’s merchandise exports fell for the twelfth consecutive month in November this year.

Stock tips from Anand Rathi: Buy Crompton Greaves, DHFL; Sell Hindalco

Here are a few trading ideas from Chandon Taparia of Anand Rathi:

The Sharp Investment has been consolidating in a range from last 13 weeks and has managed to hold the support base above Rs 1,700-1,730 zones. It has given a price volume breakout above Rs 1,800 zones by forming a small triangle on daily chart. It has managed to close above 50 DMA and also set to surpass its falling supply trend line. Thus we are recommending buying the stock with stop loss of Rs 1,785 for the upside target of Rs 1,890 levels.

The stock has taken multiple support and has been making higher lows from last four trading sessions and crossed the hurdle of Rs 220 zones. It is set to start an up move after the sideways move of last twelve trading sessions. Earlier it corrected from 242 to 205 zones and now moving upwards after an accumulation so looks strong even in terms of risk reward ratio. Thus recommending the traders to buy the stock with the stop loss Rs 210 for the upside immediate target of Rs 228levels.

The stock has seen a V shape recovery from Rs 164 to Rs 190 levels in last three weeks and given an early sign of major breakout on weekly chart. It has been making higher top – higher bottom formation on daily charts from last couple of days with rising volume activities. It registered highest daily close of last three series and holding above its volume weight age average of Rs 176 levels. Traders can buy the stock with the stop loss Rs 180 for the upside immediate target of Rs 196 levels.

The major trend of the Share price is intact to weak as it has been falling down from last six weeks. It witnesses sustain selling pressure at every small bounce back and has set perfect example of support becoming resistance. It has seen fresh call writing at Rs 80 strikes which will continue to push the stock to lower levels. One can sell the stock on bounce back move with stop loss of Rs 78.50 for the downside target of Rs 71 levels.

Pharma shares dip on profit bookings

Shares of pharmaceutical companies have fallen by up to 17% on the bourses in late noon trade on profit bookings.

Sun Pharma Advanced Research (SPARC), Natco pharma share price, Ajanta Pharma, Strides Arcolab, Suven Life Sciences, Dishman Pharmaceuticals and Chemicals, Shasun Pharmaceuticals, Wockhardt, Orchid Chemicals and Pharmaceuticals and Aurobindo Pharma were down 5- 17% on the Bombay Stock Exchange (BSE). Most of these stocks had rallied 10% -60% in past one month.

At 1512 hours, S&P BSE Healthcare index was down 1.5% or 269 points at 17,043 compared with 0.70% or 200 points decline in the S&P BSE Sensex.

In past one month, S&P BSE Healthcare index had rallied 9.6% against 3.3% fall in the benchmark index till yesterday.

Among the individual stocks, SPAC has tanked 17% to Rs 449 on the BSE.  The stock had rallied 42% in from Rs 381 to Rs 540 in past one month.

Natco Pharma locked in lower circuit of 10% at Rs 1,948 with no buyers were seen on the counter. It rallied nearly 60% from Rs 1,369 on February 20, 2015 to Rs 2,164 on Thursday.

Investment via P-Notes rises to Rs 2.58 lakh cr in October

Investment through Participatory Notes (P-Notes) into India's capital market grew to over Rs 2.58 lakh crore (about $39 billion) at the end of October.

P-Notes, mostly used by overseas HNIs (High Net Worth Individuals), hedge funds and other foreign institutions, allow such investors to invest in Indian markets through registered foreign institutional investors (FIIs).

This saves time and cost for them, but the flip side is that the route can also be used for round-tripping of black money.

According to Sebi data, total value of P-Notes investment in Indian markets (equity, debt and derivatives) increased to Rs 2,58,287 crore at October-end, from Rs 2,53,875 crore in the previous month.

This was the second successive month when investment through this route increased.

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Fight against black money: Sebi to discuss P-Notes issue

The total outstanding value of P-Notes witnessed a steady rise since January and the momentum continued till March.

However, investments through this route registered a drop in April, but hit a seven-year high in May. The inflows slipped in the subsequent three months (June-August) but marginally rose in September and again grew in October.

As things stand, P-Notes make up around 15-20% of the total FII investment in India since 2009. While it used to be much higher 25-40% in 2008, the reading was as high as over 50% at the peak of stock market bull run in 2007.

The drop in investment via P-Notes during June-August comes amid Supreme Court-appointed Special Investigation Team (SIT) on black money asking Sebi to review its regulations on participatory notes to help identify the end users of these instruments.

However, the government later said it has no intention of banning this financial instrument overnight.

Responding to a query on apprehensions that P-Notes are being misused, Sebi chief UK Sinha had last month said the regulator has all the data about entities who are using this.

The quantum (percentage) of FII investments via P-Notes remain unchanged at 11%.

Till a few years ago, P-Notes used to account for more than 50% of total FII investment, but their share has fallen over the years after Sebi tightened disclosure norms and other related regulations.

In absolute terms, the value of P-Notes investment rose to a record of Rs 4.5 lakh crore in October 2007, but dropped to Rs 3.22 lakh crore in February 2008 and Rs 60,948 crore in February 2009.

Article Source: Business Standard.

Asia shares rise on Wall Street bounce as Fed hikes seen gradual- Business Standard

Asian share markets rose on Thursday as Wall Street bounced on expectations the Federal Reserve would be confident enough of the US economy to raise rates in December but would then proceed with great caution on further tightening.

The prospect of the first US hike in almost a decade kept the dollar strong overall and commodities under severe pressure. Investors also have to steer past a Bank of Japan policy meeting and minutes of the European Central Bank's last meeting.

Japan's Nikkei firmed 1%, brushing aside a disappointing report on exports and imports.

MSCI's broadest index of Asia-Pacific shares market outside Japan added 0.6%. Australia's main index rose 1.1%, aiming for a third straight session of gains.

Sentiment was supported by the Dow which ended Wednesday with a gain of 1.43%, while the S&P 500 added 1.62% and the Nasdaq 1.79%.

Major European stock indexes fell as security issues remained a focus for investors. A suicide bomber blew herself up in a police raid that sources said had foiled a jihadi plan to hit Paris's business district, days after attacks that killed 129 across the French capital.

The French CAC 40 index fell 0.6%.

Minutes of the Fed's last policy meeting showed most members were ready to sanction a lift off in December as long as further moves were then highly dependent on the economy continuing to perform well.

"If - when - they lift rates in December, the Fed will likely be very aggressive in highlighting the idea of a very gradual pace," said Tom Porcelli, chief US economist at RBC Capital Markets.

"We fully expect Yellen to promote this heavily at her press conference."

The bond market seemed to get the message with longer-term debt outperforming and the yield curve flattening noticeably. While two-year yields rose 3 basis points those on 30-year paperactually dipped a basis point.

The premium offered by US two-year debt over its German counterpart also yawned out to 124 basis points, the fattest margin since 2006 and a fillip to the dollar.

The dollar hit a seven-month peak against a currency basket and a 10-month high on the Swiss franc . The euro edged up to $1.0676 , having hit its lowest since August.

The dollar was steady on the yen at 123.51 , after touching a three-month peak of 123.67.

The Bank of Japan holds a policy meeting Thursday and is thought likely to maintain its current pace of asset buying despite the economy slipping back into recession.

Minutes of the European Central Bank's last policy meeting are also due later Thursday and will likely reinforce expectations of further easing in December.

In commodity markets, the high dollar and worries about Chinese demand saw zinc, copper, lead and nickel prices near their lowest in five to seven years.

Oil prices came off three-month lows as short-covering lifted a market initially suppressed by worries about a global supply glut. US crude was up 13 cents to $40.88 a barrel, while Brent stood at $43.14.

Article Source: Business Standard.