Indian equity market once again sky rocketed extending its winning streak to third consecutive trading session. Sentiment got a fillip after index heavyweight L&T announced quarterly earning which was better than expected. The BSE Sensex opened above the psychologically 26,000 mark and went on to hit its highest level in almost 21 weeks. Sensex galloped approximately 1,100 points in last 2 trading session. Nifty closed with again of 135 points at 8,070 while Sensex ended with again of 486 points at 26,367.

Shares of Larsen & Toubro (L&T) surged more than 13% in today’s trade after the company reported 18.5% increase in consolidated net profit for the March quarter. Consolidated net profit in the three months ended March was up 18.5% YoY. Net sales rose 18.5% YoY.

About 54% of the total revenue in the quarter came from its infrastructure business (Subscription Required), in which revenue rose about 19% YoY. L&T garnered fresh orders worth Rs 1.3 trillion at the group level during the quarter, which constituted 62% of domestic and 32% of international orders. The consolidated order book of the group rose 7% to Rs 2.5 trillion for the year ended 31 March, with international orders constituting 28% of the total. Reportedly, the company is expecting 12-15% increase in revenues and a 15% growth in its order inflows for 2016-17. The company is looking at countries like Mozambique, Tunisia, Kenya, Uganda, Tanzania, Algeria, Botswana and Zimbabwe for its international business .

The engineering industry in India has grown tremendously over the years. But that growth has been marked by extreme volatility. Over the last eight years, the sector has seen numbers ranging from an output growth of 48% YoY in one year, to a contraction of 6% YoY in another. In our recent edition of the The 5 Minute Wrap Up Premium, we explain what factors to look for when picking an engineering stock (Subscription Required).

Engineering stocks finished on a strong note with L&T and Bharat Bijlee leading the gains.

Moving on to news from mining sector. According to an article in The Economic Times, Coal India is in talks with power companies in Bangladesh to supply coal. This is the first time Coal India will be exporting the fossil fuel on a commercial basis.

Reportedly, Coal India subsidiaries, Bharat Coking Coal and North Eastern Coalfields, plan to supply coal to Bangladesh. It is likely to be transported to Haldia port in West Bengal from where it could be forwarded through sea route to ports in Bangladesh. Coal India could not afford to export coal till last year because the fossil fuel was in short supply. The scenario changed last year when the company managed to pull up production at a considerable pace. Surplus stocks at pit head and slow lifting by power companies have prompted the company to explore the international market.

Apart from local Bangladeshi companies Coal India has also initiated talks with NTPC’s joint venture in Bangladesh, the 1,320 mw Maitree Project at Rampal in Bagerhat district. The project is a 50:50 JV between NTPC and the Bangladesh Power Development Board. Coal India finished the trading on a flat note.

USDINR trade today trading up 16 paise at 67.17 per US dollar.

Out of 1,812 stocks traded on the NSE, 1046 declined and 503 advanced today.

Top 5 Nifty Gainers: Sun Pharma (4.13%), Lupin Ltd (2.58%), Adani Ports & Sez (2.22%), SBI (1.82%) and Reliance Ind. (1.59%).

Top 5 Nifty Losers: ITC Ltd (-1.26%), L&T (-0.66%), NTPC (-0.60%), Tata Motors (-0.44%) and Axis Bank (-0.13%)

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The Indian indices shot up on Wednesday tracking a strong rally in equity markets across the globe. Sentiment got a boost after US home sales data supported the consensus view that the economy may be strong enough for the Federal Reserve to raise interest rates in the coming months. Besides, hopes of above normal rains in the upcoming monsoon season kept the sentiment high too. Nifty closed with again of 186 points at 7,935 while Sensex ended with again of 576 points at 25,881.

Buying activity was witnessed across majority of the pharma stocks with Indoco Remedies and Torrent Pharmaleading the gains. Shares of Dr. Reddy’s Laboratories finished the trading day on an optimistic note (up 1.3%) after it was reported that the company has entered into the branded consumer health arena through the acquisition of six over-the-counter (OTC) brands from Ducere Pharma, including Doan’s, Bufferins, Nupercainal Ointment, Cruex Nail Gel, Comtrex and Myoflex.

These legacy products enjoy strong brand equity built over several decades. The company is extremely excited to be entering the branded consumer health arena through these brands and embarking upon the next avenue of growth for our OTC business in the US.

Recently, the Indian Health Ministry announced a ban on 344 fixed dosage combination (FDC) drugs. The ban came after an expert committee’s recommendation. Pharma companies will have to suspend the manufacturing and sale of drugs that fall into this category, including cough syrups, analgesics, and antibiotic combinations. In a recent edition of The 5 Minute WrapUp Premium, we explained how FDCs pose a new challenge for the pharma companies(Subscription Required).

Moving on to news from the engineering sector. As per a leading financial daily, Bharat Heavy Electricals(BHEL) has successfully commissioned the first 800 MW Supercritical thermal unit in Karnataka, which is also the highest rating unit in the state. The unit has been commissioned at the 2×800 MW Yeramarus Thermal Power Station (TPS) located in Raichur district of Karnataka. Yeramarus is being developed by Raichur Power Corporation (RPCL) – a Joint Venture of Karnataka Power Corporation (KPCL) and BHEL.

The second unit of this project is also in an advanced stage of construction and is expected to be commissioned shortly. BHEL’s scope of work for the project includes design, engineering, manufacture, supply, erection and commissioning of state-of-the-art supercritical Boiler and Turbine Generators along with associated civil works and agreed Balance of Plant packages.

Engineering stocks finished the day on a positive note with L&T and BHEL leading the gains.

USDINR trade today trading up 15 paise at 67.31 per US dollar.

Out of 1,812 stocks traded on the NSE, 1046 declined and 503 advanced today.

Top 5 Nifty Gainers: L&T (9.50%), BHEL (1.71%), GAIL (1.63%), ONGC (1.38%) and Hero Motocorp (1.90%).

Top 5 Nifty Losers: Sun Pharma (-1.42%), NTPC (-1.41%), SBI (-0.71%), Cipla (-0.49%) and TCS (-0.46%)

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.

The Indian equity market ended near day’s high on Tuesday snapping a four day losing streak amid a highly lackluster day. The session was so dull that NSE Nifty index was stuck in a mere 40 points range while BSE Sensex was trapped in a 160 points range. Nifty closed with again of 18 points at 7,749 while Sensex ended with again of 75 points at 25,305.

Asian markets finished mixed as of the most recent closing prices with Japanese shares dropping amid renewed strength in yen as fresh data showed the country’s exports continued to fall. The Nikkei 225 & the Hang Seng fell 0.49% and 0.22% respectively while the Shanghai Composite gained 0.64%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.29% while London’s FTSE 100 is off 0.10% and Germany’s DAX is lower by 0.09%.

A report by State Bank of India(SBI) highlighted that credit growth in India is unlikely to revive materially in near term as demand conditions are still acting as a drag. The report offered that it is too early and premature to conclude about the credit growth picking up in the country.

During the fiscal 2015-16, credit growth witnessed some improvement and stood at 11.3% as on March 18, 2016. However, come April 29 this year, credit off-take declined to 9.2%.

The report also stated that the supposed correlation between balance sheet cleaning and credit growth picking up will only happen once the growth cycle picks up significantly.

To aid credit growth, the Reserve Bank of India (RBI) has cut interest rates by 1.5% so far. However, the transmission of rates by banks has been much lower. Hopefully, with the marginal cost of funds based lending rate that came into effect from April 2016, banks are now in a better position to pass on the rate-cuts. However, more than this, the revival in the broad economy will play a key role in bringing about a more sustainable recovery in credit demand.

Engineering stocks are trading on a mixed note with Welspun Corp and Jyoti Structure leading the losses. In another news update it was reported that L&T Infotech, an arm of engineering giant Larsen and Toubro (L&T), has received approval from the SEBI for its proposed initial public offering (IPO).

The company had filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) in April. SEBI approved its final observations on the draft offer documents on May 20, which is necessary for any company to launch a public offer.

The company’s IPO comprises an offer-for-sale of up to 17,500,000 equity shares of the subsidiary by L&T. The issue is being managed by Kotak Mahindra Capital Company, Citigroup Global Markets India and ICICI Securities.

USDINR trade today tradingdown 15 paise at 67.63 per US dollar.

Out of 1,812 stocks traded on the NSE, 1046 declined and 503 advanced today.

Top 5 Nifty Gainers: ICICI Bank (2.50%), Asian Paints (2.07%), Infosys Ltd (1.98%), Tata Motors (1.91%) and Axis Bank (1.90%).

Top 5 Nifty Losers: Cipla (-6.73%)

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.