3:52 PM Sectoral trend: All but Nifty IT ended in green
3:48 PM Sensex heatmap at close
3:38 PM Markets at close
The S&P BSE Sensex ended at 33,342, up 236 points, while the broader Nifty50 settled at 10,283, up 69 points.
Moody's boost to Modi: Should India really cheer?
The Narendra Modi government is celebrating the upgrade of India’s sovereign credit rating by Moody’s Investors Service. The new rating places India at Baa2, up a notch from Baa3. The outlook has also been raised from positive to stable, while other ratings, including the one for short-term local currency, have seen an upgrade by a notch each. READ FULL VIEW
Centrum Broking on CARE Ratings
We have tweaked our estimates for FY18E/ FY19E marginally and are now building in 14.5%/ 13.9% CAGR in revenues/ EBIDTA over FY17-19E. We continue to like CARE for its business model and the free cash flow yield. Valuations at 22.4x FY19E EPS however limit near-term upside. Retain Hold with TP at Rs 1,560 (valued at 25x FY19E EPS). In our earlier notes, we have argued for higher valuation multiples for CARE (discount gap with peers to narrow) and we expect the trend to continue as more signs of superior growth get visible. We continue to prefer CARE as a proxy play to revival in rating opportunities. Lower-than-expected volume growth/ price reduction are key risks.
Still short of best rating
Global rating agency Moody’s on Friday upgraded India’s sovereign bond rating by a notch to Baa2. This is the best for the country in the recent past, but India's sovereign ratings in late 1980s and 1990 were higher. The economy had a rating of A2 in 1988 which was downgraded by two notches to Baa1 in 1990. However, the rating in 1990 was still a notch higher than now. CLICK HERE FOR GRAPHIC
2:40 PM Top five Nifty gainers
2:38 PM Markets check
At 2:35 pm, the S&P BSE Sensex was trading at 33,397, up 290 points, while the broader Nifty50 was ruling at 10,298, up 83 points.
Shares of real estate companies were in focus with DLF, Puravankara, Kolte Patil Developers, Sunteck Realty and Ajmera Realty hitting their respective 52-week highs on Friday. All these stocks were up in the range of 5% to 15% on the BSE in intra-day deal. READ FULL REPORT
Govt sets up panel to ensure GST benefits reach you
Angry that the stated benefits of GST have not reached you yet as a consumer? Perhaps it's the restaurant bill, which hits your pocket just as much as it did when 18 per cent GST was levied on AC restaurants. Maybe it's regarding the sundry items you need for everyday living. Now, the government has come up with measures to stop businesses from giving you a raw deal. READ MORE
'India's growth potential higher than other Baa economies'
Moody’s Investor Services on Friday upgraded India’s sovereign ratings by a notch to Baa2 from Baa3. In order to understand what factors prompted this upgrade, Business Standard spoke to William Foster, vice-president, Sovereign Risk Group, Moody’s Investors Service. READ FULL INTERVIEW
1:29 PM Markets in late noon deals
Sebi to investigate possible leak of company earnings on WhatsApp chats
The Securities and Exchange Board of India (Sebi) will investigate possible leaks of company earnings in social media chatrooms, its chief Ajay Tyagi said on Friday.
A Reuters investigation documented at least 12 cases of prescient messages about major Indian companies being posted in private WhatsApp groups.
“We will certainly investigate the issue. It is a work in progress,” Tyagi, chairman of Sebi, India’s market regulator, told Reuters, when asked what action the regulator was considering. READ MORE
Cipla gains 3% on final approval for generic Pulmicort Respules
Cipla was up 3.4% to Rs 613 on the BSE in intra-day trade after the pharmaceutical company announced that it has received a final approval from the US health regulator for generic Pulmicort Respules used for treatment of asthma.
“The company has received final approval for its Abbreviated New Drug Application (ANDA) for Budesonide Inhalation Suspension, 0.25mg/2mL, 0.5mg/2mL, and 1mg/2mL from the United States Food and Drug Administration (USFDA) to market a generic version of Astrazeneca’s Pulmicort Respules,” Cipla said in a press release. READ MORE
12:30 PM Market Check at 12:30 pm
19 stocks from BSE500 index hit 52-week highs
ICICI Bank, Bank of India, Cholamandalam Investment and Finance Company, HeidelbergCement India, Jubilant FoodWorks, L&T Technology, KPIT Technologies, Polaris Consultancy Services and Titagarh Wagons were among 19 stocks from the S&P BSE500 index that hit 52-week highs , follwoing over 1% rally in the equity markets.
These 12 stocks include Eveready Industries, Indian Bank, Radico Khaitan, Tata Global Beverages, Vakrangee and 3M India etc. READ MORE
It's time to move primarily into short-term funds
The one-week average returns of most long-term debt fund categories have turned negative: Gilt medium and short term (-0.32 per cent); dynamic bond (-0.18 per cent) and income funds (-0.13 per cent), according to Valueresearchonline.com. This has been caused by a spike in interest rates, with the yield on the 10-year government bond rising from 6.73 per cent to 7.06 per cent over the past month.
After this spike, investors need to re-examine their debt fund strategy. Several factors are responsible for the rise in interest rates. READ MORE
Moody's rating upgrade positive for India's financial ecosystem: Analysts
Moody’s sovereign rating upgrade for India to ‘Baa2’ with a stable outlook took benchmark indices, the S&P BSE Sensex and the Nifty 50, over 1% higher in intra-day deals to 33,520 and 10,339 levels respectively.
Analysts see the move as a big positive for the Indian financial ecosystem and India Inc. The banking sector, they say, will be one of the key beneficiaries as it remains a proxy to the country’s economic growth. That apart, the recent recapitalisation plan for public sector banks will also be viewed more constructively. READ MORE
HDFC Standard Life makes a positive debut, gains 7% against issue price
HDFC Standard Life Insurance Company (HDFCSL) made a positive debut by listing at Rs 311, a 7% premium against issue price of Rs 290 per share on the BSE. The stock opened at Rs 310 on the National Stock Exchange (NSE).
HDFCSL's Rs 8,695 crore initial public offer (IPO) was oversubscribed 4.9 times to its issue size. The issue got strong response from the qualified institutional buyers (QIBs), which saw 16.6 times more demand than shares on offer. READ MORE
11:02 AM Market Check at 11 am
New India, ICICI Lombard may take time to win investor faith
Despite being 2017’s celebrated Initial Public Offerings, ICICI Lombard and New India Assurance haven’t been able to sustain investor interest. While the former is trading around its listing price of Rs 681, the latter is trading six per cent lower than its issue price.
Even assuring September quarter (Q2) results hasn’t helped. For one, valuations are working against them. Analysts at Kotak Institutional Equities point out that ICICI Lombard is currently priced to perfection and ignores volatility of the insurance business and likely increase in competition. READ MORE
HDFC MF, SBI MF are top two AMCs in terms of equity assets
Domestic asset management companies (AMCs) are sitting on their highest-ever equity assets at over Rs 8 lakh crore. The mutual fund industry went through a turbulent phase after the 2008 financial crisis.
The tide turned in early 2014 when investors once again started flocking to equity schemes. Assets under management (AUM) of the industry in the equity segment have increased nearly fourfold from the 2013 lows. A lot of AMCs have managed to successfully cash in on this. Currently, HDFC Mutual Fund and SBI Mutual Fund are the top two AMCs in terms of equity assets. READ MORE
Options to revive group drying up for Anil Ambani
The shareholders of Anil Ambani group firms are a worried lot these days, particularly due to the stress in Reliance Communications (RCom).
News reports on the group have been mixed — while the demerger and separate listing of Reliance Capital’s (RCap’s) housing finance arm and the initial public offering (IPO) of its asset management business were positive, RCom disappointed. The telecom business defaulted on interest payment to its US dollar bond holders this week, sending its share price below Rs 10 in intra-day trades. READ MORE
India Inc's combined net profit down 2.6% led by telcos, textile firms
Festival sales and restocking of goods after the goods and services tax (GST) roll-out provided some relief to corporate India during the July-September quarter, but the gains were not enough to completely erase the losses caused by the note ban and the new indirect tax system.
While consumer companies and large manufacturers recovered some of their mojo during the second quarter, investment-related sectors and second-tier manufacturers continue to struggle with a flat-to-low-single-digit growth in their top line and a decline in earnings. READ MORE
9:48 AM Nifty Bank at record high post Moody's upgrade
9:37 AM Top Sectoral gainer: Nifty PSU Bank index
9:30 AM IT Sector falls as Rupee up nearly 1%
9:26 AM Sectoral Trend
9:21 AM Top Sensex gainers and losers
9:18 AM Broader Markets
Broader Markets were in line with the frontline indices with BSE Midcap and BSE Smallcap indices up 1.2% and 1.1% up respectively
9:17 AM Markets open
Benchmark indices open higher after global rating company, Moody's Investors Service upgraded India’s sovereign rating to Baa2 from Baa3 and changed the outlook to stable from positive.
At 9:16 am, the S&P BSE Sensex was trading at 33,519, up 412 points while the broader Nifty50 index gained over 10,333 up 118 points
9:11 AM Bond Alert
Bond open at 1-week low after Moody's upgrade. Rupee best gainer among Asian currencies against Dollar, opens 1% higher
Derivative Strategy on Karnataka Bank by HDFC Securities:
Buy Karnataka Bank November 160 call at Rs 3.80
Stop loss: Rs 3
Target: Rs 6.50
Few trading ideas by Prabhudas Lilladher:
CMP: Rs 623.50
TARGET: Rs 685
STOP LOSS: Rs 590
BUY HINDUSTAN ZINC
CMP: Rs 301.80
TARGET: Rs 328
STOP LOSS: Rs 288
CMP: Rs 1030.75
TARGET: Rs 1090
Nifty Outlook by Prabhudas Lilladher:
Nifty after correcting nearly by 50% of the recent swing has for now taken support at 10,100 levels. Market has witnessed a good bounce back rally from here, what now needs to be seen if Nifty manages to move past 10,350 levels decisively for this rally to continue. The support for the day is seen at 10,170 while resistance is seen at 10,260.
Structural reforms could change the glide path: Arun Jaitley
Union Finance Minister Arun Jaitley has hinted that reform measures such as the introduction of the goods and services tax (GST) could possibly lead to a deviation from the fiscal road map.
“No pause but challenges arising from structural reforms (which) could change the glide path,” a research report from Morgan Stanley quoted the Finance Minister as saying at an event in Singapore. READ MORE
India Inc raises Rs 1.4-lakh crore via equities in 2017
Fundraising through the equity route hit an all-time high, touching the Rs 1.4-lakh crore mark during the current calendar year (CY17). In all, companies raised a record Rs 1,40,073 crore in the ten-and-a-half months of CY17 (January – November 14, 2017) through various equity instruments.
This includes initial public offerings (IPOs), follow-on offers (FPOs), offer for sale (OFS), rights issues, and institutional placement programmes (IPPs), including qualified institutional placements (QIP). READ MORE
HDFC Standard Life to make stock market debut today
HDFC Standard Life Insurance Company, which has recently concluded its Rs 8,695-crore initial public offering, will make a debut on stock exchanges today.
The shares will be listed on the BSE and the NSE, the company said.
The IPO, which was open for subscription on November 7-9, was subscribed 4.89 times at a price band of Rs 275-290 per share. READ MORE
RBI eases rules for short-selling in govt bonds
The Reserve Bank of India on Thursday eased the rules for short-selling in government bonds, allowing traders to deliver securities from their own portfolio against short sales in “exceptional situations” of market stress.
Until now, the central bank had not permitted government bond market traders to use securities from their own portfolios for delivery against a short sale, forcing them to borrow in the repo market.
Moody's upgrades India's rating, changes outlook to stable
Global rating company, Moody's Investors Service has upgraded India’s sovereign rating to Baa2 from Baa3 and changed the outlook to stable from positive. The development that will give big boost to Modi government, reduce the cost overseas borrowing and improve investments in India,
Rating company, while justifying the upgrade said that the reforms undertaken by the government will "improve the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth."
This year it expects real GDP growth to moderate to 6.7% in the fiscal year ending in March 2018.
The Nifty50 futures on the Singapore Stock Exchange were trading 82 points higher at 10,342 indicating a positive opening for the domestic market.
Asian shares trade higher
Asian shares rose on Friday as strong US earnings and a step forward in the US Congress on tax reform brightened the mood, even though investors noted that many more hurdles must be passed to reach a final deal on tax cuts.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1% while Japan's Nikkei gained 0.9%, extending its recovery from a near three-week intraday low hit the previous day.
US markets end higher
Wall Street’s main indexes rose sharply on Thursday boosted by earnings-related gains in Wal-Mart and Cisco.
The Dow Jones Industrial Average rose 187.08 points, or 0.8%, to 23,458.36, the S&P 500 gained 21.02 points, or 0.82%, to 2,585.64 and the Nasdaq Composite added 87.08 points, or 1.3%, to 6,793.29,
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First Published: Fri, November 17 2017. 15:35 IST