Stock Market

Sensex, Nifty end in red; Reliance down 3%, Bharti slumps 6%


Chillicious Bureau

3:30 pm Market closing:

After a very choppy day, the market ended in red. The Sensex slipped 28.69 points or 0.1 percent at 28423.48, and the Nifty was down 11.55 points or 0.1 percent at 8774.65. About 1084 shares have advanced, 1645 shares declined, and 176 shares are unchanged.

Bharti was down 6 percent, Reliance fell 3 percent while BHEL, Wipro and Adani were losers in the Sensex. GAIL, Tata Motors, ICICI Bank, Lupin and Coal were gainers in the Sensex.

3:00 pm BoAML on telecom: The brokerage house sees some near term impact on Bharti/Idea Cellular financials given that the service is free till
December, and expect consensus downgrades on back of it.

“For the incumbents, we expect some adverse impact in the lower tier segment, as the lowest Rs 149 offer will appeal to the voice only consumers who will be able to make free voice calls on Jio’s network. In our view, this is a surprise as the market was not expecting Jio to aggressively target the low end market,” BoAML says.

The brokerage house sees three price point plans to be most disruptive – Rs 149/Rs 299/and Rs 499.

The impact on the higher tier segment is likely to be muted as Jio does not have any plan between Rs 299 to Rs 500 (Bharti/Idea total ARPUs are in the Rs. 180-190 range), it feels.

Currently incumbents offer 1-1.5GB at Rs 300 price points, but it expects them to respond with a more aggressive offer, and reiterate buy/neutral rating on Bharti/Idea.

2:52 pm Market off day’s high: Equity benchmarks remained choppy despite strong Europe. The Sensex was up 14.21 points at 28466.38 while the Nifty fell 3.15 points to 8783.05.

2:42 pm Reliance on petchem biz: Mukesh Ambani says Reliance Industries has invested over Rs 1,10,000 crore on petchem business and investments in last 5 years have been more than investments in 35 years. 

Ethane project at jamnagar will be ready by end of this fiscal while synthetic rubber plants are now operational, he adds.

Ambani says the company is working on monetising 3-4 tn cubic ft from KG basin under new gas price guidelines.

“We will be opening 200 fuel retail outlets soon,” he says, adding petrochem & refining business to see 40-50 percent growth anually in future.

2:40 pm Market gains some strength: The Sensex was up 85.83 points at 28538 and the Nifty rose 22.90 points to 8809.10, led by banking & financials and FMCG stocks, though the fall in telecom stocks and Reliance Industries capped gains.

2:36 pm Motilal Oswal on Jio: “The launch of Reliance Jio was much awaited and is very much welcome. No doubt tariff plans for voice and data is going to be a Game Changer for telecom industry. As for Reliance its large part of capital employed in telecom segment around INR 1.35 lakh crore will start delivering revenues, Dharmesh Kant, Head – Retail Research, Motilal Oswal Sec said.

Investor community will closely monitor the roll out and effectiveness of Reliance Jio, in conjunction with plans by competitors to tackle new scenario, he said.

2:30 pm Auto sales: India Yamaha Motor today reported 22 percent increase in domestic sales to 74,868 units in August.

The company had sold 61,440 units in the same month a year ago, India Yamaha Motor said in a statement.

Yamaha Motor India Sales Vice President (Sales and Marketing) Roy Kurian said: “The major breakthrough in sale numbers is the result of Yamaha’s continuous dedication to develop its products by exploring widely held customer choices. The vantage through strategic approach of customer centric activities and network development has contributed to the strong momentum.

2:15 pm LPG price hike: The price of subsidised cooking gas (LPG) was today hiked by about Rs 2 per cylinder, third increase since July, while the jet fuel price was cut by 3.8 percent.

A subsidised 14.2-kg cylinder will now cost Rs 425.06 in Delhi as against Rs 423.09 previously, according to state- owned oil firms.

This is the third straight increase in subsidised cooking gas since July when the government decided to go in for a small hike in rates every month to cut down subsidies.

LPG rates were last hiked by Rs 1.93 per cylinder on August 16. Prior to that rates were hiked by Rs 1.98 per 14.2 -kg cylinder on July 1.

The government had recently decided to take the diesel route for eliminating subsidies on LPG and kerosene. Diesel price was deregulated in November 2014 after the previous UPA government effected 50 paise hikes every month to eliminate subsidies.

Also read – Ambani’s datagiri on offer; Jio to come with free calls, cheap data

2:00 pm Market Check

The consolidation continued in afternoon trade with the Nifty hovering around 8800 level due to lack of domestic as well global cues.

The Sensex was up 65.72 points at 28517.89 and the Nifty gained 12.10 points at 8798.30.

Reliance Industries fell 1 percent on profit booking. Finally chairman Mukhesh Ambani unveiled much awaited tariff plans for its telecom business, saying the Jio will commercially be launched on December 31.

Bharti Airtel and Idea Cellular crashed 7-10 percent after Jio’s tariff plans. Ambani says Reliance Jio roaming charges will be zero within India and will charge Rs 50 per gigabyte for data.

All the plans will have free voice calls & unlimited messages, he says while addressing annual general meeting.

Disclaimer: Reliance Industries owns Network 18 that publishes