The Indian market started with a negative note today and ended with a marginal loss of 30.65 points to close at 7971.30 amidst some volatility. The drag in the second half was from the weak European markets with CAC down by 0.74% and DAX down by 0.64%. The strength in today’s pocket was from the Pharma and Oil & Gas. The highest gaining stocks today in the trade were CIPLA(3.66%), LUPIN(3.45%), DRREDDY(2.81%), GAIL(2.75%), BPCL(2.67%) while the stocks among the losing side were BHEL(3.64%), POWERGRID(3.51%), BHARTIAIRTEL(2.33%), ULTRATECHCEMENT(2.18%), ACC(2.16%).
Bharti Infratel up by 12% – The stock is up 12% on an intraday basis. Temasek who was holding 1.58% stake in the company, has sold 1.737 crore shares and thus reducing the stake to 0.66% as of now. On the other hand, CLSA stated that not only does Bharti Infratel offer growth, a strong balance sheet and 3% dividend yield but also the tower industry in India is consolidating with several companies in excessive leverage. Moreever Bharti Infratel’s planned merger and acquisition, especially to buy Idea Cellular and Vodafone’s 20000 towers, would be synergistic and add to growth. Thus CLSA maintains buy rating on the stock.
Punj Lloyd gets Haldia refinery contract from IOC – The stock was up by 9% on the news of bagging the Haldia refinery contract from IOC worth Rs 1094 crore. The company’s order backlog stands at Rs 20978 crore after this order win. The scope of work for project involves the residual process design, detailed engineering including HAZOP study, engineering, procurement, construction and commissioning of the sulphur block comprising sulphur refinery unit, amine regeneration unit, the sour water stripper including utilities and offsite facilities.
India’s Q1 Gross Domestic Product (GDP) expected at 7.5% but Gross Value Added (GVA) may fall to 6.7% – India’s first quarter GDP is expected to come at 7.5% vis-a-vis 6.7% year ago while GVA is expected to fall to 6.7% from 7.4% in the Q1 of previous year. Taxes are added while subsidies are subtracted from GVA to get GDP. The increase in GDP is due to marginal fall in subsidy and increases in taxes but GVA is lower due to poor Agricultural performance. So, services will limp along fine but industry as indicated by poor IIP data, and agriculture will take the number down.