Anand James, Chief Market Strategist, Geojit Financial Services
Unsteady movements in the oil marketing company stocks, with uncertainties prevailing over the fuel prices kept markets volatile early in the day, but strength in midcaps kept market sentiments buoyant. The late surge in PSUs is suggestive that investors are expectant of the speeding process of NPA resolution and anticipating news on the consolidation of PSU banks, sooner than later.
3:47 PM Sectoral trend
Nikhil Kamath, Co-Founder and Head of Trading, Zerodha
The indices continued to scale up, now within touching distance of the all time highs yet again. An overall bull trend has been firmly established and is definitely in play, in the short term there could be fluctuations based on the inherent froth that has crept into the system. Everybody seems to be calling for higher levels and the overall sentiment is definitely bullish. In the near term we expect some volatility taking the markets lower by 3-5%, post which the bull trend could resume again.
3:44 PM Sensex heatmap at close
3:41 PM Market breadth
The breadth, indicating the overall health of the market, remained neutral. On BSE, 1,311 shares rose and 1,304 shares declined. A total of 152 shares were unchanged.
3:39 PM Broader markets outperform
Broader markets outperformed with the BSE Midcap and the BSE Smallcap indices adding 0.6% each.
3:37 PM Markets at close
The Sensex ended at 32,241, up 55 points, while the broader Nifty50 closed at 10,086, up 7 points.
Centrum on Orient Refractories
We maintain Buy on Orient Refractories (ORL), with an unchanged target price of Rs 170 as the growth story remains on track with i) steady revenue growth led by improving domestic demand, and ii) strong traction in exports sales with approval of increased transaction limits with parent, RHI. Q1 performance was a mixed bag with revenue growth above expectations but provisioning for steel accounts keeping EBITDA/PAT supressed.
We remain structurally positive on ORL and believe that the tremendous scope for brownfield expansion, as well as low capital and operational costs, MNC parentage and strong return ratios make it a compelling long term bet.
3:20 PM Oil prices
Oil prices steadied, holding on to most of their recent gains after forecasts for stronger oil demand by the International Energy Agency (IEA).
Benchmark Brent crude was down 10 cents at $55.06 a barrel after rising 89 cents or 1.6% on Wednesday. US light crude was unchanged at $49.30 after gaining 2.2% in the previous session.
European stock markets inched lower on Thursday, weighed down by weaker miners, while shares in German reinsurer Munich shrugged off a profit warning.
The pan-European STOXX 600 index was down 0.2% with the basic resources sector taking most points off as investors digested a decline in industrial metals and disappointing data from top consumer China.
Among other regional benchmarks, Britain's FTSE fell 0.1% ahead of the results of Bank of England policy meeting later in the day, while Germany's DAX was down 0.3%.
India VIX declined for the sixth straight session.
Sebi orders forensic audit of 3 firms
Markets regulator Sebi has ordered forensic audit of three firms -- Trinity Tradelink, Info-Drive Software and Edynamics Solutions -- which figure among 331 suspected shell companies that are under its scanner.
These are in addition to Sebi ordering forensic of four other such firms -- IRIS Mediaworks, Hit Kit Global Solutions, Kavit Industries and GV Films. READ DETAILS HERE
3:01 PM Markets check
At 3:00 pm, the Sensex was trading at 32,248, up 62 points, while the broader Nifty50 was ruling at 10,089, up 10 points.
2:46 PM Buzzing stock
Private lender Axis Bank rose over 4% to Rs 520, and was the top percentage gainer on the Sensex and Nifty, after brokerage firm Deutsche Bank upgraded the stock to “buy” and raised its target price to Rs 600.
Recapitalisation a major issue: UCO bank chief
Recapitalisation is a major issue for state-run banks owing to the massive non-performing assets (NPAs), or bad loans, accumulated by them and they are now exploring various sources of raising capital, according to a leading public sector bank (PSB). READ FULL STORY
Kotak Institutional Equities on OMCs
The petroleum minister’s clarification on not interfering with auto fuels pricing mechanism on an ad-hoc basis may provide some relief, post a media flash suggesting the possibility of OMCs absorbing higher crude prices. However, the government’s intent to maintain higher excise duties despite a sharp jump in fuel prices over the past few months, may rule out any possibility of expansion in marketing margins even in a reasonable crude price and exchange rate environment and thus, defy the thesis of higher multiples for marketing profits. We remain negative on OMCs.
1:57 PM Buzzing stock
Reliance Communications fell over 2% to Rs 21, a day after the Indian arm of Ericsson filed a petition seeking to drag the debt-laden telecom firm into insolvency due to unpaid dues. CLICK HERE FOR DETAILS
1:46 PM Buzzing stock
Himachal Futuristic Communications (HFCL) hit an over nine-year high of Rs 30.10, up 8% on the National Stock Exchange (NSE) in intra-day trade, after the company said it was no longer under the Corporate Debt Restructuring (CDR) mechanism. The stock was trading at its highest level since February, 2008. READ MORE
1:30 PM Broader markets outperform
The BSE Midcap and the BSE Smallcap indices gained 0.4% and 0.6%, respectively.
1:22 PM Top five losers on Nifty in noon deals
1:06 PM Market Check
The benchmark indices pared morning gains to trun flat in the afternoon deals oil & gas, realty and IT sector indices.
At 1:06 pm, the S&P BSE index was trading at 32,198, up 12 points while the broader Nifty50 index was ruling at 10,077, down 2 points.
August wholesale inflation hits four-month high at 3.2%
Wholesale price inflation has risen to 3.24% from a year ago, its fastest pace in four months, driven by higher prices of food and fuel products, data showed.
The rise compares with a 3% increase forecast by economists in a Reuters poll and a provisional 1.88% rise in July.
Wholesale food prices in August rose 4.41% on year, compared with a 2.12% rise a month earlier, government data showed on Thursday.
Thermax gains on order win
Thermax was up 5% to Rs 943 on BSE in intra-day trade after the company said that the Thermax Group has won a contract worth $43 million (Rs 276 crore approximately) from a leading cement company in the UAE for a turnkey captive power plant.
“This is the first engineering, procurement and constructions (EPC) order that Thermax will be executing for a GCC (Gulf Co-operation Council) country. We intend to expand our footprint in this region where we have been providing business solutions,” said MS Unnikrishnan, Thermax MD and CEO. READ MORE
12:22 PM ALERT: 10-year bond yield at 3-month high on higg WPI Inflation
12:21 PM WPI inflation
August WPI inflation at 3.24% vs 1.88% in July
Godrej Property gains
Godrej Properties rose 2.93% on BSE after the company announced that it has entered into a joint venture with Nirmal Ventures for developing a residential project located on the Lal Bahadur Shastri Marg, Thane West.
Emerging markets to double returns in two years, says BofA-ML
Even as Asian markets are ruling at their decade high levels, there is enough room for them to deliver over 100% returns in the next two years, believes foreign brokerage BofA-ML, advising investors to raise exposure, if they have not already.
"EM equities are already up 60% since January 2016 in this bull market, and we think a potential doubling is likely in the next two years to mirror the trajectory of prior bull markets," said BofA-ML.
If history is a guide, EM equities rise 230% on average, in bull markets that last about 42 months, at three times the pace of the rise in the S&P500 in the same period, the brokerage pointed out. READ MORE
11:51 AM BUZZING STOCK
Divi’s Laboratories was up 4% in intra-day trade, extending its 19% rally of the last four trading sessions on media reports that the company has re-invited US Food and Drug Administration (USFDA) for reinspection of Unit-II, which comprises of 60-65% of total sales for the company.
Kotak Securities on economy
Inflation continues to inch up. CPI inflation continued to move up from its trough and is set to hit the 4% mark in November. Vegetable prices continued increasing sequentially in line with the seasonal effect. Core inflation inched up on the back of housing (7CPC HRA effect). We expect the upward trend to continue over the next few months along with some sequential seasonal softening of food prices in 3QFY18. We maintain our call that the RBI would pause for the rest of FY2018
Centrum on Orient Refractories
We maintain Buy on Orient Refractories (ORL), with an unchanged target price of Rs 170 as the growth story remains on track with i) steady revenue growth led by improving domestic demand, and ii) strong traction in exports sales with approval of increased transaction limits with parent, RHI.
Q1 performance was a mixed bag with revenue growth above expectations but provisioning for steel accounts keeping EBITDA/PAT supressed. We remain structurally positive on ORL and believe that the tremendous scope for brownfield expansion, as well as low capital and operational costs, MNC parentage and strong return ratios make it a compelling long term bet.
BHEL surges 10%
Bharat Heavy Electricals Limited (BHEL) has moved higher by 10% to Rs 146 on the back of heavy volumes after Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe on Thursday laid foundation stone for India's first bullet train between Ahmedabad and Mumbai.
Till 11:00 AM; a combined 23.1 million equity shares changed hands against an average 3.2 million shares were traded daily in past two weeks on BSE and NSE. READ MORE
Sharekhan on Thomas Cook
We maintain our Hold recommendation on the stock with a revised sum-of-the-parts (SOTP) price target of Rs.262 (the increase in target price is largely to factor in better growth in the core travel and related businesses and increase in the valuation of Quess Corp due to the recent run-up in the stock price in which Thomas Cook India has 57.2% stake).
Prabhudas Lilladher on markets
With the downward revision of earnings for both Auto as well as Banks, EPS estimates for FY18 for the Nifty is revised to Rs488.9 from the earlier levels of Rs503.6. This makes the market more challenging and expensive as a significant amount of reduction in earnings have come due to increased provisions of the banks. As the PCR of the banks increases to around 65% and incremental slippages slow down, we are likely to see a sharp jump in earnings for the banks.
As the market sees new highs, increased inflow into equities from DIIs is likely to result in increased fund raising programme of the corporates. We expect to see slew of new issuances in addition to QIPs. This insatiable supply of paper is likely to keep the market under check.
We expect markets to consolidate in a range of 10000 – 10138 (for the Nifty) with slightly higher volatility. Traders are advised to be very selective while making the stock selection. It’s advisable to stay light and focus on individual stocks as we may see some incremental change in the volatility
(Source: Angel Broking)
Godrej Properties rises after forming JV for residential project
Godrej Properties rose 2.93% to Rs 651.45 at 9:25 IST on BSE after the company announced that it has entered into a joint venture with Nirmal Ventures for developing a residential project located on the Lal Bahadur Shastri Marg, Thane West.
The stock had hit a high of Rs 655.05 and a low of Rs 641.50 so far during the day.
Long-term equity returns: Claim vs reality
When on August 1, 2017, Nifty 50 touched 10,114, it gave a return (theoretical) of over 32x in approximately 27 years. While Nifty 50 was launched for trading on April 1996, it was back calculated all the way to July 20, 1990, for the purpose of index creation.
From July 20, 1990, till date, Nifty 50 has given an annualised return of approximately 13.7%. While such headlines create a case for long-term investment in Indian equities, it also sets wrong expectations about risk and return among retail investors. READ MORE
Wipro turns ex-date for share buyback; stock down 5% intra-day
Wipro dipped 5% to Rs 282 on BSE in intra-day trade after the stock turned ex-date for the proposed buyback.
Wipro on September 1, 2017 informed the stock exchanges that the Company has fixed September 15, 2017 as the record date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buyback. READ MORE
Pharma shares extend gain
Shares of pharmaceutical companies were trading higher for the third straight session with Sun Pharmaceutical Company and Divi’s Laboratories gaining more than 10% each.
In the past three trading sessions, the Nifty Pharma index surged 6%, while the S&P BSE Healthcare gained 5% against 1% rise in the benchmark indices.
READ FULL REPORT HERE
'Time-bound listing' plan for PSUs fails to take off
The 'time-bound listing' for public sector undertakings (PSUs), announced in this year's Union Budget, isn't being met. A state-owned unit was to list within 165 days after its Initial Public Offer of equity (IPO) got approval by its parent ministry or department and by the department of investment and public asset management (Dipam).
The idea was to help the Centre with its ambitious disinvestment target of over Rs 70,000 crore for the current financial year. However, PSUs have repeatedly missed the schedule set under the guidelines. READ MORE
Interglobe Aviation approves price band for QIP at Rs 1,125-1,175 per share
India's InterGlobe Aviation Ltd, which runs the country's top airline IndiGo, will conduct a share sale to institutional investors on Friday that will raise for the company and its founders as much as Rs 3,945 crore ($616 million).
The company set a price range on Wednesday of Rs 1,125 to Rs 1,175 a share for the sale of up to 33.6 million shares, comprising of 22.4 million new shares and 11.2 million existing shares.
The share sale is aimed at helping the company meet minimum public holding rules. READ MORE
SIP inflows touch Rs 5,206-cr milestone in August
Mutual fund (MF) investments through the systematic investment plan (SIP) route touched a new high of Rs 5,206 crore in August. A record 700,000 new SIP accounts were also opened during the month, taking the total tally of such accounts to around 16 million.
According to industry experts, the impressive figure indicates that flows into MFs would sustain at record levels.
Nearly half of the new accounts prefer the SIP mode over the traditional lump-sum or one-time investment option. During the start of FY18, the number of SIP accounts stood at 13.5 million. READ MORE
9:42 AM Sectoral trend
9:32 AM Sun Pharma extends gains
Shares of Sun Pharmaceutical Industries extended yesterday's gains, advanced over 3%, becoming the top gainer on frontline indices. The pharma company rallied on Wednesday after global financial services firm Credit Suisse upgraded the pharma major stock to ‘Outperform’ from ‘Neutral’.
9:27 AM OMCs gain
Oil & Gas index was the top sectoral gainer, up over 1.5% as OMCs recovered from Tuesday's losses after the Oil Minister ruled out government intervention and said the govt would not ask state-run companies to absorb the price rise in petrol and diesel and would stay to market-driven pricing. IOC, BPCL and HPCL gained between 2.5-3.5%.
9:22 AM Top Sensex gainers and losers on BSE Sensex
9:20 AM Broader Markets
Broader markets were outperforming the frontline indices with BSE Midcap and BSE Smallcap indices up 0.7% each.
9:19 AM Markets open
Benchmark indices open marginally higher with Nifty reclaiming 10,100 levels on Thursday following Asian peers after focus returned this week to fundamentals from geopolitical risks and natural disasters.
The S&P BSE Sensex was trading at 32,259, up 73 points, while the Nifty50 was ruling at 10,100, up 21 points
Nifty view from Prabhudas Lilladher
Nifty for now is showing resistance at 10130 levels; however RSI on daily chart shows no sign of fatigue. A decisive move past 10,150 gives us further upside target of 10,250-10,300 levels. The support for the day is seen at 10,030 while resistance is seen at 10,130.
9:07 AM Trading ideas from Prabhudas Lilladher
BUY AUROBINDO PHARMA
CMP: Rs 760
TARGET: Rs 825
STOP LOSS: Rs 735
The stock after a short phase of consolidation has indicated a positive move with a bullish candle pattern in the daily chart and we anticipate further more upward movement in the coming days. The RSI has also indicated a trend reversal recently signaling a buy and maintaining the positive bias. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 825 keeping a stop loss of Rs 735.
Click for more calls
Technical calls by MOSL
ASHOK LEYLAND - BUY
Last Close: Rs 117
Stop Loss: Rs 112
Target: Rs 126
AXIS BANK - BUY
Last Close: Rs 1,823
Stop Loss: Rs 1,770
Target: Rs 1,920
Stock recos for today's trade from Tradebulls
BUY: TATA POWER
CMP: Rs 84.80
Stop Loss: Rs 80.30
Target: Rs 98
BUY: DR REDDY'S (DRL)
CMP: Rs 2217
Stop Loss: Rs 2135
Nifty Outlook by Sacchitanand Uttekar of Tradebulls
Nifty has commenced the week on a strong footing as it opened above the apex (9,950) of the contracting range in which it had oscillated during its past 3 weeks. The broad based participation compliments the setup & the ongoing momentum could see the index scale above its current life high placed around 10,138. The momentum could only be distorted in case 10,030 is breached from hereon on a closing basis and hence serves as a trail stop for trading longs. We expect the index to register fresh life highs near 10,260-10,350 zone soon.
Oil holds gains, buoyed by hopes for robust demand
Oil prices on Thursday held most of their gains of around 2% from the previous session, buoyed after the International Energy Agency raised its forecast for growth in global oil demand.
London Brent crude for November delivery was down 11 cents at $55.05 a barrel, after settling Wednesday up 89 cents, or 1.6%
Capacit'e Infra IPO fully subscribed on first day of sale
Indian construction company Capacit'e Infra Projects Ltd's initial public offering, to raise up to Rs 400 crore ($63 million), was fully subscribed on the first day of the sale, stock exchange data showed.
Capacit'e, which builds residential and commercial buildings, is selling new shares in a price range of Rs 245 to Rs 250 apiece in the sale which closes on Friday.
Matrimony.com IPO oversubscribed 441% on last day
Matrimony.com, the first pure-play Indian matchmaking website to launch a stock market listing, drew heavy demand for its offering, benefiting from the country's booming IPO market.
Matrimony.com's initial public offering of up to Rs 5 billion ($78 million) was subscribed 4.4 times or 441% over as of 7.45 pm (IST) on Wednesday, the last day of sale, with applications for over 12.5 million shares received, against the 2.8 million shares on offer, according to data from the National Stock Exchange. READ MORE
Sebi asks exchanges to frame new outsourcing policy
The Securities and Exchange Board of India (Sebi) has asked stock exchanges and clearing corporations to prepare a framework for appointing of third-party vendors. The market regulator has directed the so-called market infrastructure institutions to not outsource core and critical operations such as trading information, infrastructure and surveillance.
Industry players say the move will help in better risk management and safeguard the markets and investors from unforeseen risks.
READ FULL REPORT HERE
Oil Minister rules out intervention on daily fuel price revision
Oil minister Dharmendra Pradhan said the government would not ask state-run companies to absorb the price rise in petrol and diesel and would stay to market-driven pricing.
He ruled out government intervention to disrupt the daily revision in petrol and diesel prices despite Rs 7.3 per litre spike in rates since July, saying the reform will continue.
He added that a shift to the goods and services tax (GST) regime was the only way to have a transparent tax structure on fuel items.
"The government has no business to interfere in the day-to-day affairs of companies. We have linked product prices to the market and will stick to that," said Pradhan. READ MORE
The Nifty50 futures on the Singapore Stock Exchange were trading 11 points lower at 10090 indicating a flat opening for the domestic market.
8:47 AM Asian Markets
Asian stocks edged down on Thursday, consolidating after touching their highest in a decade, while the dollar held steady before the US inflation report for August is published.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1% after rising to its highest since 2007 the day before.
Japan's Nikkei was effectively flat following its climb to a one-month high on Wednesday.
Wall Street hits record high
Wall Street edged up to a record high on Wednesday with gains in consumer discretionary and energy stocks helping offset losses in technology heavyweight Apple Inc.
The Dow Jones Industrial Average rose rose 39.32 points, or 0.18%, to 22,158.18 The S&P 500 edged up and gained 1.89 points, or 0.08%, to 2,498.37, and the Nasdaq Composite added 5.91 points, or 0.09%, to 6,460.19.
8:44 AM Good Morning and welcome to market's live blog. Catch all the live market action here
First Published: Thu, September 14 2017. 15:48 IST