3:35 PM Markets at close
The S&P BSE Sensex ended at 32,941, down 91 points, while the broader Nifty50 closed at 10,186, down 38 points.
3:17 PM Buzzing stocks
Vakrangee, Balkrishna Industries, VIP Industries, Graphite India, HEG, Minda Industries, Sterling Tools and Gulf Oil Lubricants were among 15 stocks from the S&P BSE500 and S&P BSE Smallcap index that hit their respective new highs on the BSE in intra-day trade. READ MORE
Encouraging earnings from telecoms companies put European shares on the front foot on Tuesday, helping them recover from a seven-week low hit in the previous session.
The pan-European STOXX 600 was up 0.2 per cent, also helped by gains in British retailer Tesco after the UK regulator approved its $4.9 billion takeover of wholesaler Booker.
Centrum Broking on SBI
We retain Buy on State Bank of India (SBIN) with SOTP-based TP revised upwards to Rs370. Q2FY18 results were on lower side to our estimates on revenue / profitability front. We however draw comfort in a) lower than expected slippages (2.4% in Q2’18 vs 6.7% in Q1’18) and b) ~430bps QoQ rise in PCR to 65.1%. Merged entity is on a strong footing with healthy CAR (13.9%); watchlist portfolio at 1.2% of loans (vs 1.4% QoQ) and well contained asset quality. Valuations remain attractive. Continue to prefer SBIN in the PSU space.
Kalpataru Power advances after good Q2 result
Kalpataru Power Transmission rose 3.65% to Rs 392 on BSE after net profit rose 23.66% to Rs 71.49 crore on 9.45% rise in total income to Rs 1237.52 crore in Q2 September 2017 over Q2 September 2016.
2:41 PM Markets turn flat
At 2:40 pm, the S&P BSE Sensex was trading at 33,044, up 11 points, while the broader Nifty50 was ruling at 10,218, down 6 points.
Experts see RBI keeping rates unchanged in December
Stronger food and fuel inflation pushed up headline CPI inflation to a seven-month high in October and accordingly, the Reserve Bank is expected to stay on hold in its upcoming policy review meet next month, a majority of experts believe. READ FULL REPORT
2:09 PM Sectoral trend in noon deals
JM Financial on SpiceJet
Spicejet reported EBITDAR of Rs 500 crore, broadly in-line with JMfe of Rs 520 crore. EBITDAR increased 21% YoY, driven by high pax growth. The company reported a PAT of Rs 100 crore in 2QFY18. The medium term fleet addition for SpiceJet remains limited. However, aggressive utilisation levels – PLF @90%+ backed by tactical pricing & ancillary revenue focus, continues to augur well for revenue maximisation. Industry high load factors, cost rationalisation by the new management, coupled with lower ATF prices have helped turn around the loss-making airline – delivering profits for almost three years in a row. SpiceJet’s strong regional presence places it favourably to avail benefits of the UDAN scheme. In accordance of the Division bench order relating to a dispute with the erstwhile promoters, the company has provided a bank guarantee of Rs 330 crore and deposited Rs 250 crore with the registrar. This impending arbitration remains an overhang on the name. Maintain BUY.
1:39 PM Buzzing stocks
Three stocks from the Anil Ambani controlled Reliance Group companies – Reliance Communications (RCom), Reliance Home Finance and Reliance Nippon Life Asset Management – have hit their respective new lows and Reliance Naval and Engineering hit 52-week low on the BSE in intra-day trade. READ FULL REPORT
Bharti sells stake in Bharti Infratel
Bharti Airtel on Tuesday said it had offloaded 83 million shares in subsidiary Bharti Infratel for Rs 3,325 crore through secondary share sale in the stock market. READ MORE
1:03 PM Market Check
Vakrangee extends rally on 1:1 bonus issue; stock hits new high
Vakrangee hit a new high of Rs 659, up 7% on the BSE in intra-day trade, extending its past six-session long rally, after the board of directors of the company on Monday recommended a bonus issue in the ratio of 1:1 i.e. 1 share for every 1 share held.
In past seven trading sessions, the stock rallied 25% from Rs 527 on November 3, after the company said its board will meet to consider and approve issue of bonus shares. On comparison, the S&P BSE Sensex was down 2% during the same period. READ MORE
12:32 PM WPI Data
Oct WPI stood at 3.59% vs 2.60% in Sept and 1.27% in Oct 2016
Govt seeks hefty dividends from state firms as its revenues falter
India is demanding millions of dollars in dividends from 12 reluctant state companies to make up for an expected tax revenue shortfall this fiscal year, as a slump in economic growth risks New Delhi overshooting its fiscal deficit target.
The demand has been made following a finance ministry assessment on Oct. 25 of the financial health of 14 state companies, including top miner NMDC Ltd and trading firm MMTC Ltd, according to a government document reviewed by Reuters.
The ministry asked 12 of the companies to payout between 30 percent and as much as 100 percent of their 2016/17 or 2017/18 net profit in dividends, share buybacks or bonus shares. The other two companies were exempted. READ MORE
Strong order book, margin gains ahead for Motherson
Motherson Sumi’s September quarter (Q2) results were marginally lower than estimates due to slowing revenue growth and margin pressure at its overseas subsidiaries, SMR and SMP, respectively.
Consolidated operating profit, which came in at Rs 1,250 crore (up 26 per cent year-on-year or y-o-y), was about five per cent lower than consensus estimates. Adjusted for the PKC group acquisition, operating profit growth was limited to 11 per cent. READ MORE
11:46 AM INTERVIEW OF THE DAY
Higher crude to intensify FII selling, delay earnings recovery: B Gopkumar
The recent selling by foreign institutional investors (FIIs) has been on account of rising crude prices, which could continue in the medium-term, tells B Gopkumar, Executive Director & CEO, at Reliance Securities in an interview. With the Bharat-22 ETF getting launched on Wednesday, Gopkumar advises retail investors to take a slice of it as the companies under the ETF hold a proven track record. READ FULL INTERVIEW HERE
We don't believe IPOs were overpriced: Anuradha Thakur
Responding to queries on weak post-listing performance of insurance companies, Anuradha Thakur, joint secretary, Department of Investment & Public Asset Management (Dipam) said, “We don’t believe the issues were overpriced. These companies have technical resources and high intrinsic value. This is not getting captured in regular valuation pattern.”
Dipam will take into consideration what happened with New India and GIC Re when it comes to pricing future initial public offerings (IPOs) from the insurance sector, she said on the sidelines of a conference to launch the Bharat-22 ETF. The Centre is looking to launch IPOs of at least three more insurance companies, which include United India, Oriental Insurance Company and National Insurance Company. READ MORE
Bharti Infratel down 4% after block deals
Bharti Infratel dipped 4% to Rs 398 on the NSE in intra-day trade after more than five percentage point equity of the company changed hands through multiple block deals.
The stock hit its lowest level since September 29, 2017. It hit a 52-week high of Rs 483 on October 17, in intra-day deal. READ MORE
10:59 AM Market Check
Khadim India makes tepid debut, lists 3% lower against issue price
Khadim India made a tepid debut on the bourses by listing at Rs 727, 3% lower against its issue price of Rs 750 per share on the BSE. The stock opened at Rs 730 on the National Stock Exchange (NSE).
Footwear retailer had raised Rs 543 crore through initial public offer (IPO), which was subscribed 1.90 times. The reserved portion for Qualified Institutional Buyers (QIBs) and Retail Individual Investors (RIIs) was oversubscribed by 2.45 times and 2.33 times, respectively. However, the reserved portion for Non-Institutional Investors or NIIs portion was undersubscribed at 0.18 times, exchange data show. READ MORE
Bitcoin tumble erases $38 bn as rival cryptocurrency gains
Bitcoin slumped as the cancellation of a technology upgrade prompted some users to switch out of the cryptocurrency, spooking speculators who had profited from a more than 500 per cent surge this year.
The cryptocurrency has dropped 5.6 per cent since late Friday, and at one point extended its slide from last week’s record to as much as 29 per cent. Bitcoin cash, a rival that split from the original bitcoin in August, has jumped 32 per cent since Friday, according to data compiled by Coinmarketcap.com. READ MORE
Repco Home Finance surges 14% post Q2 earnings
Repco Home Finance surged 14% to Rs 671 on the BSE in early morning trade after the company reported 22% growth in net profit at Rs 56 crore in September 2017 quarter (Q2FY18). It had reported profit of Rs 46 crore in a year ago quarter.
Net interest income (interest earned minus interest expended) during the quarter under review grew 21% at Rs 109 crore against Rs 90 crore in the corresponding quarter of previous fiscal. READ MORE
Inflows in equity MFs surge to Rs 2.86 lakh cr post demonetisation
Equity mutual funds registered a staggering inflow of Rs 2.86 lakh crore in the past 11 months bolstered by the ban on high value currency notes, latest industry data showed.
The sudden spike in bank deposits and consequent decline in interest rates following demonetisation on November 8, 2016 led to surge in inflow into equity mutual funds, an analyst said.
According to the Association of Mutual Funds in India (Amfi) data, equity funds received an inflow of Rs 2.86 lakh crore from November 2016 to October 2017. Prior to that, such funds had registered flows of Rs 1.5 lakh crore between October 2016 and December 2015. READ MORE
Seven Islands Shipping gets Sebi's nod for Rs 450-cr IPO
Seven Islands Shipping has received Sebi's go-ahead to raise an estimated Rs 450 crore through an initial public offering, latest update with markets regulator showed.
The company had filed draft papers with the Securities and Exchange Board of India (Sebi) in late September and obtained its "observations" on November 10, which is very necessary for any firm to launch public offer.
Going by the preliminary papers, Seven Islands Shipping's IPO comprises fresh issue of shares worth Rs 200 crore, besides a sale of scrips to the tune of Rs 250 crore by private investor Wayzata Investment Partners and promoters.
Include Bharat-22 ETF in your satellite portfolio
The new fund offer (NFO) of Bharat-22 Exchange Traded Fund (ETF) will open for subscription by retail investors on November 15(the first day, November 14, is reserved for anchor investors). The latest offering from the government is more diversified than the Central Public Sector Enterprise (CPSE) ETF, which was heavy on the energy sector. The new ETF has 22 companies spread across six sectors compared to just 10 stocks spread across five sectors in the CPSE ETF. READ MORE
9:22 AM Sectoral Trend
9:21 AM Top Sensex gainers and losers
9:19 AM Broader Markets
In broader markets, BSE Midcap was a little changed while BSE Smallcap gained 0.2%
9:18 AM Markets open
At 9:17 am, the S&P BSE Sensex was trading at 33,018, down 15 points while the broader Nifty50 index was ruling at 10,220, down 4 points
Few trading ideas by Prabhudas Lilladher:
BUY MAH & MAH FINANCE
CMP: Rs 433.55
TARGET: Rs 470
STOP LOSS: Rs 413
CMP: Rs 576.60
TARGET: Rs 630
STOP LOSS: Rs 550
BUY JINDAL STEEL & POWER
CMP: Rs 171.70
TARGET: Rs 190
STOP LOSS: Rs 160
Nifty outlook by Prabhudas Lilladher:
As said earlier, Nifty after the decline from the levels of 10,500, now has broke the significant level of 10,250 and the chances of further profit booking in the coming days cannot be ruled out. We have now the level of 9,980 for Nifty as the crucial support for the near term. However, the support for the day lies at 10,170 while resistance lies at 10,270.
Strong support around 10,125 levels on Nifty
The market corrected through the past week. In fact, it has seen net losses through the November settlement. After hitting a high of 10,490 on November 6, the market has reacted to a recent low of 10,216 on November 13. There were multiple negative data points but one way of looking at this would be to assume that traders wanted an excuse to book profits.
A weak Index of Industrial Production for September, and rising retail inflation for October might have been triggers. Higher global crude oil prices may also have started to bite. Global trends have also weakened somewhat. READ MORE
Bharat 22 ETF opens today, aims to raise Rs 8,000 crore
The Bharat 22 Exchange Traded Fund (ETF) announced earlier this year as part of the government's disinvestment programme will open for investors on Tuesday and end on November 17.
With the initial issue size of Rs 8,000 crore, the ETF will open for anchor investors on Tuesday, for non-anchor investors on November 15, and close on November 17, Department of Investment and Public Asset Management (DIPAM) Joint Secretary Anuradha Thakur told reporters. READ MORE
Jaitley rules out single GST rate but hints at further rate cuts
Finance Minister Arun Jaitley on Monday ruled out a single rate for the goods and services tax (GST), adding any further rationalisation of tariffs would be contingent on revenues.
“Those who are speaking of a single rate for the GST have no understanding of the tariff structure. Food items have to be taxed at nil. ‘Common-man items’ have to be taxed at the lowest rate of 5 per cent,” he said. READ MORE
October retail inflation touches 7-month high, vegetable prices soar
Consumer Price Index (CPI)-based inflation rose to this financial year’s highest rate of 3.58 per cent in October, from 3.28 per cent in September, food and fuel prices increasing at a higher pace.
This could stop the Reserve Bank of India (RBI) from cutting rates in its policy review next month to spur falling industrial growth even as core inflation (relating to manufactured products sans food items) fell to 4.55 per cent, from 4.61 per cent. READ MORE
The Nifty50 futures on the Singapore Stock Exchange were trading 4 points lower at 10257 indicating a flat opening for the domestic market.
8:41 AM Asia Check
Asian stocks wobbled on Tuesday as investors awaited developments in U.S. tax reform efforts, while contemplating if a marked flattening in the U.S. yield curve might ultimately be a harbinger of an economic slowdown there.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.25% after two sessions of declines, while Australia fell 0.9%.
Japan's Nikkei was choppy, down 0.1% to add to four sessions of losses.
US markets ended higher
US stock indexes rose on Monday as a sharp drop in General Electric shares was more than offset by gains in high dividend-paying sectors.
The Dow Jones Industrial Average rose 17.49 points, or 0.07%, to 23,439.7, the S&P 500 gained 2.54 points, or 0.10%, to 2,584.84 and the Nasdaq Composite added 6.66 points, or 0.1%, to 6,757.60
8:38 AM Good Morning!
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First Published: Tue, November 14 2017. 15:33 IST