Vinod Nair, Head of Research, Geojit Financial Services
Market advanced and touched another historic high on firm global cues. Strength in rupee and a gradual pick up in FII buying has increased the liquidity in the market. On the other hand, focus has now shifted to US Fed policy meet, which begins tomorrow. The consensus is showing status quo in interest rate while investors are keenly looking for any announcement for trimming the balance sheet.
4:12 PM Nifty Bank ends above 25,000
4:09 PM Nifty PSU Bank sole sectoral loser
3:59 PM Sensex heatmap at close
3:55 PM Market breadth
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,530 shares rose and 1,075 shares declined. A total of 195 shares were unchanged.
Broader markets outperform
The BSE Midcap and the BSE Smallcap added 0.7% and 0.8%, respectively. The Nifty Midcap settled at fresh closing high to gain nearly 1% at 4,977.
3:41 PM Markets at close
The Sensex settled at 32,423, up 151 points, while the Nifty50 closed at 10,153, up 67 points.
Centrum Broking on Sundaram Finance
We retain 'Buy' on Sundaram Finance (SUF) with SOTP based TP revised upwards to Rs 2,000 (Rs 1,740 earlier). The increase in our TP follows a) revision in earnings estimates for the core - asset financing business and b) higher contribution from the subsidiaries following improved profitability and outlook therein. Strong capital position, best-in-class asset quality and superior returns profile continue to remain key strengths. Value un-locking through demerger of non-financial investments into a separate entity could lead to further upside in the stock. Prefer Sundaram Finance in the NBFC space.
3:20 PM All but two sectors are trading in green
3:15 PM Buzzing stocks
Shares of Himachal Futuristic Communications (HFCL), HEG and MIRC Electronics are locked in their respective upper limit of circuit filters for the second straight session on the BSE.
HFCL hit an over nine-year high of Rs 35.95, up 10%, extending its 17% surge in past two trading sessions 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
3:13 PM Volatility index
India VIX, an index to measure the volatility in the markets, eased over 2% to 11.51.
US oil prices hit $50
US crude oil prices rose above $50 per barrel and were near last week’s multi-month highs as the number of US rigs drilling for new production fell and refineries continued to restart after getting knocked out by Hurricane Harvey.
US West Texas Intermediate (WTI) crude futures were trading up 41 cents, or 0.8 percent, at $50.30 by 0852 GMT, near the three-month high of $50.50 it reached last Thursday. Brent crude futures, the benchmark for oil prices outside the United States, were at $55.91 a barrel, up 29 cents, and also not far from the near five-month high of $55.99 touched on Thursday.
European markets trade higher
European markets rose to six-year high as global investors returned to equities amid cooling geopolitical tensions. The pan-European Stoxx 600 was up by around 0.5%, Germany's DAX, Britain's FTSE and France's CAC 40 added 0.6%, 0.3% and 0.4%, respectively.
HDFC Securities on Va Tech Wabag
With ~2.3x Order book to revenue, Va Tech Wabag offers strong revenue visibility. We expect revenues to grow at 17% CAGR over FY17‐19E driven by faster execution. EBITDA margin expansion of 50bps over the next two years should lead to EBITDA CAGR of 19%. We expect earnings to witness 41% CAGR FY17‐19E led by better operating performance and improvement in overseas operations.
At CMP of Rs 636, the stock is trading at 16x of its FY19E EPS and ~8x EV/EBITDA. We recommend investors to buy the stock between Rs 585-636 with target of Rs 780 over the next 4 quarters. We have valued the stock based upon ~20x FY19E earnings and 9.5x EV/EBITDA.
2:45 PM Nifty holds on to morning gains, trades above 10,150
Top five gainers
Small-cap rally: Indiabulls Ventures zooms 1262% in CY17
he S&P BSE Small-cap index hit its all-time high of 16,869 level in intra-day deals on Monday. The index has gained nearly 40% thus far in calendar year 2017 (CY17). However, the rally in some of the individual stocks that comprise this index has been sharper. READ FULL REPORT
Tide Water Oil (India) has moved higher by 15% to Rs 6,437 on BSE in noon deals after the company announced that it has approved the pre-dealing application form received from Standard Greases and Specialities, joint promoter in connection with further acquisition of 174,240 equity shares or 5% stake of the company. READ MORE
Edelweiss Securities on Minda Corporation
We estimate consolidated EPS to clock nearly 24% CAGR over FY17-19 led by higher SOB across key clients and new product launches. We estimate RoE to improve to nearly 20% in FY19 (13% in FY17) given improving margin outlook. We revise up target multiple to 18x (from 15x) in sync with upgrade of multiples across the sector and Motherson. We maintain ‘BUY’ with target price of Rs 151 (18x FY19E EPS). At CMP, the stock trades at 15.5x FY19E PER.
Broader markets outperform
The BSE Smallcap index held on to gains to trade near its all-time high hit in early trade. The index was up over 1%, while the BSE Midcap was trading 0.8% higher.
1:26 PM Markets check
At 1:25 pm, the Sensex was trading at 32,471, up 198 points, while the broader Nifty50 was ruling at 10,162, up 76 points.
1:12 PM Nifty Auto was the top sectoral gainer, up over 1% in the afternoon deals
Shares of Punj Lloyd gained nearly 9% intraday as it has won order worth Rs 120 crore.
The company has won a prestigious order worth Rs 120 crore for the supply and commission of five full body truck scanners (FBTS) from the Ministry of Home Affairs.
The company will become first private sector company in India to install these X-ray based FBTS at the country's borders, which can detect concealed arms, ammunition, explosives, detonators, IEDs, narcotics, and fake currency.
Nifty, Nifty Midcap, BSE Smallcap, BSE500 indices hit new high
Supportive global cues helped Nifty 50, Nifty Midcap from the National Stock Exchange (NSE) and S&P BSE Small-cap and S&P BSE500 index from the BSE (Bombay Stock Exchange) hit their respective high in intra-day deals on Monday.
While Nifty 50 index hit a new high of 10,167, surpassing its previous high of 10,115 made on August 1, 2017 in intra-day trade, the Nifty Midcap50 and Nifty Midcap100 indices, too, recorded high of 4,979 and 19,126 levels, respectively on the NSE.
Going ahead, experts remain optimistic on foreign fund flows into the Indian equity markets. Economic growth, they say, is the key factor driving them to invest here. That said, investors will also be keeping a tab on the upcoming results season to assess the impact of the goods and services tax (GST) bill, progress of monsoon and Reserve Bank of India’s (RBI’s) strategy on rates. READ FULL REPORT HERE
Bajaj Auto hits record high; market-cap crosses Rs 90,000 crore
Bajaj Auto hit a record high of Rs 3,129, up 3.5% on BSE in intra-day trade to regain its status as the country’s most valued two-wheeler company in terms of market capitalisation (market-cap).
The stock surpassed its previous high of Rs 3,122 touched on September 9, 2016 in intra-day trade.
The market-cap of Bajaj Auto crossed Rs 90,000 crore mark today, after a sharp 7% rally in the last two trading sessions.
Click to read full report
August equity flows surprise fund executives
Equity mutual funds got inflows of Rs 20,000 crore in August, 2.4 times the average monthly inflows seen during the previous seven months of 2017. The unusually high inflow tally raised many eyebrows, with some market players requesting industry body, the Association of Mutual Funds in India (Amfi), to reconfirm the data.
Sources in the Amfi said the data were accurate. Also, the high tally was not on account of huge one-off flows into arbitrage schemes, said industry players. READ MORE
Slips in trade
Indiabulls Real Estate dipped 7% to Rs 232 in intra-day on BSE after more than eight percentage points of total equity of real estate developer changed hands in multiple block deals.
The name of the buyers and sellers were not ascertained immediately.
The promoter group entity IBREL IBL Scheme Trust had sold its entire of 8.99% in the company through open market in past two months.
Over 90 stocks on the NSE hit fresh 52-week highs.
As much as 93 stocks on the NSE hit fresh 52-week highs which include names like Page Industries, Honeywell Auto, Britannia Industries, Bajaj Auto, Dixon Technologies, HDFC Bank, L&T, Bata India, TVS Motors, JBM Auto, HEG, and Gillette India among others.
Mutual Fund assets now a fifth of banking system deposits
Assets under management (AUM) of the domestic mutual fund (MF) industry touched a record high of Rs 20.6 lakh crore in August. This is nearly a fifth of the banking system deposits, which stood at Rs 106.7 lakh crore last month. In March 2014, MF assets accounted for only a tenth of the banking system deposits.
The MF industry, which offers a mix of equity and debt products, has been a prime beneficiary of the improvement in and shift towards financial savings in the country. READ MORE
11:25 AM Markets Check
Benchmark indices held on to morning gains led by auto, banking and FMCG indices. At 11:25 am, the S&P BSE Sensex was trading at 32,472, up 200 points while the broader Nifty50 inces was ruling at 10,159, up 74 points.
Infosys' Senior VP quits
Infosys Senior Vice President Sanjay Rajagopalan has resigned from his post, a month after Vishal Sikka stepped down as the company’s MD and CEO.
In his Linked In profile, Mr. Rajagopalan described himself as a “free man.” He also mentioned that he was employed with Infosys from August 2014 to September 2017, a duration of three years and two months.
It was widely anticipated that Mr. Rajagopalan would quit after Mr. Sikka put down his papers. Mr. Sikka had brought some of his former SAP colleagues to Infosys to help him implement his new initiatives. One among them was Mr. Rajagopalan, in October 2014.
Bharat Road Network gains 6% vs issue price after listing flat at Rs 450
Bharat Road Network Limited (BRNL) made a flat debut on the bourses by listing at Rs 490.90 on the BSE, against its initial public offer (IPO) price of Rs 205 per share. On NSE, BRNL listed right at its issue price of Rs 205.
The stock recovered by over 6% to Rs 218.65 against its issue price after hitting an intraday low of Rs 196.50 on the BSE in early trade. READ MORE
Dixon Technologies makes stellar debut
Dixon Technologies (India) made a strong debut on the bourses by listing at Rs 2,725, a 54% premium against its initial public offer (IPO) price of Rs 1,766 per share on the National Stock Exchange (NSE) and BSE.
The stock hit a high of Rs 2,908 on BSE and Rs 2,899 on NSE after few seconds of its listing. At 10:04 AM; it was trading at Rs 2,837, a 61% over its IPO price. A combined 1.67 million shares changed hands on the counter on BSE and NSE so far. READ MORE
As IPOs boom, playing in the grey market can hurt badly
Retail investors usually get caught up in the frenzy of a bull market and burn their fingers in IPOs. After a few of them perform well, small investors rush to the market to make a quick buck.
Investors don’t realise that a correction can destroy their wealth, as seen in the case of many IPOs during the bull run of 2008. Only a few companies that offer stock in a bull market manage to give decent returns over the long term due to their valuations at the time of listing.
Most of the real estate company IPOs between 2006-08 are still trading below their listing price, including DLF, HDIL, Parsvnath and Orbit Corporation. While DLF is trading at 63% below its issue price, Orbit Corporation is down 97%. READ FULL STORY HERE
National Insurance Company looks to raise Rs 5,000 cr from IPO
Non-life PSU insurer National Insurance Company (NIC) is expecting to receive between Rs 4,000 crore and Rs 5,000 crore from the proceeds of its planned public offer, industry sources said.
Sources also said that the NIC, now wholly-owned by the government, would be seeking the amount to shore up its capital base in order to maintain solvency margins. READ MORE
Life insurers cut fresh exposure in equities by 57% to Rs 16,793 cr in FY17
The life insurance industry, led by state-run LIC, drastically cut down its fresh exposure in equities by 57 per cent during the financial year 2016-17 to Rs 16,793 crore from Rs 39,535 crore a year ago, data collated by the Life Insurance Council said.
This reduction was despite the fact that key market indices went up remarkably during the year with the BSE Sensex alone rising to 29,620 on March 31 this year from 25,342 a year ago. READ MORE
9:43 AM Buzzing Stock
Shares of Laurus Labs added 2% as it has received the EIR from USFDA.
The company has received the establishment inspection report (EIR) from US Food and Drug Administration (USFDA) for its Finished Dosage Formulations (FDF) and Active Pharmaceuticals Ingredients (API's) manufacturing plant, Unit 2, located at Achutapuram, Vishakhapatnam, for the inspection completed in May 2017.
9:39 AM The coming session is likely to witness a range of 10000 on declines and 10200 on advances: SMC Global
9:35 AM Sectoral Trend
NIfty Auto was the biggest sectoral gainer, up 1%, followed by Nifty PSU Bank and Nifty Private Bank, up 0.8% and 0.7% respectively
9:30 AM Nifty Realty was the only sector trading in red, down 0.3% dragged mainly by losses in the Indiabulls real estate, which fell over 6% in the early morning trade.
9:25 AM Nifty at record high: Top ten gainers on the index
9:23 AM Top gainers and losers on BSE Sensex
9:21 AM Broader Markets
Broader markets outperformed the frontline indices with Nifty Midcap hitting its fresh high too. BSE Midcap and BSE Smallcap indices gained 0.8% and 0.9% respectively in the early morning trade.
9:19 AM Markets open
Benchmark indices open higher with Nifty hitting new record high of 10,154, surpassing the previous milestone of 10,137, hit on August 2 on Monday tracking Asian peers, which hit decade highs amid relief that the weekend passed with no new provocation by North Korea.
At 9:17 am, the S&P BSE Sensex was trading at 32,458, up 185 points while the broader Nifty50 index was ruling at 10,150, up 65 points
Stock recommendations by Angel Broking:
Last Close: Rs 506.90
Last Close: Rs 2649
Trading ideas from Prabhudas Lilladher
BUY ALLAHABAD BANK
CMP: Rs 72.50
TARGET: Rs 79
STOP LOSS: Rs 68
The stock has recovered strongly from the low of Rs 63 and has moved on significantly and now has given a breakout above the 200-DMA level which was at around Rs 71 to indicate potential and strength to scale further upside. The RSI has been on the rise so is the MACD and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 79 keeping a stop loss of Rs 68.
Nifty view by Prabhudas Lilladher:
Nifty, after several failed attempts, is taking great difficulty to cross the peak level of 10,137 and is moving in a narrow range coupled with the geopolitical tensions prevailing. The weekly trend has turned up after five weeks and technically, there is no negative signal to create any chaos. However, the support for the week is seen at 9,940 while resistance is seen at 10,200.
8:55 AM Stock recos by Devang Shah
MARUTI SUZUKI– BUY
CLOSE – Rs 8,088
TARGET – Rs 8,200/8250
L&T FINANCE- BUY
CLOSE – Rs- 206.90
TARGET – Rs 215/219
ADANI PORTS- BUY
CLOSE – Rs 404
TARGET – Rs 420/425
8:54 AM Nifty Outlook by Devang Shah
Market finally broke out of short term Bullish Triangular consolidation range on upside as expected last week.One should expect market to trend towards higher levels targets as mentioned below in short term.
Short term trader should be stock specific & book profit at regular intervals in this rally. All the other indices such as midcap & small cap & Nifty Bank also closed weekly in positive territory.
Short-term outlook for the market remains positive till Nifty trades above 9,988 levels and expecting target of 10,300-10,500 levels in short term.
Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and is expecting targets in the range of 12,000-12,200 levels in medium term.
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FPIs withdraw Rs 3,000 cr from stocks in Sept so far
Continuing their selling spree, overseas investors have taken out over Rs 3,000 crore from equities this month so far amid "lacklustre earnings season" and geopolitical headwinds.
The net outflow by foreign portfolio investors (FPIs) follows a withdrawal of Rs 12,770 crore from the stock market in August. Prior to that, they had pumped in over Rs 62,000 crore in the past six months.
According to the latest depository data, FPIs withdrew a net Rs 3,085 crore ($481 million) from September 1-15.
However, they pumped in Rs 3,051 crore in debt markets during this period. READ MORE
India's forex reserves cross $400 billion
India’s foreign exchange reserves crossed the $400-billion mark last week, data released with a lag of seven days by the Reserve Bank of India (RBI) showed.
As of September 8, the forex reserves with the central bank stood at $400.73 billion, up $2.6 billion from a week earlier. Most of the reserves — about $376.20 billion — are held in foreign currency assets such as the US dollar, euro, pound sterling, Japanese yen, etc, and is valued in terms of the American greenback. READ MORE
India's CAD at 2.4% of GDP
India’s current account deficit (CAD) in the first quarter ended June soared to a four-year high of $14.3 billion, or 2.4% of gross domestic product (GDP), from 0.1 per cent a year ago and 0.6 per cent in the fourth quarter.
The CAD, the difference between imports and exports, was at $0.4 billion a year ago and $3.4 billion in the fourth quarter of 2016-17.
Despite the high CAD, strong capital flows ensured that the balance of payment surplus was at $11 billion, a two-year high. READ MORE
The Nifty50 futures on the Singapore Stock Exchange were trading 52 points higher at 10146 indicating a positive opening for the domestic market.
Asian Shares at 10-year highs
Asian shares hit decade highs on Monday and the dollar held firm early in a week in which the U.S. Federal Reserve is likely to wrestle with its bloated balance sheet as part of a long reversal of super-cheap money worldwide.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9% to reach heights not visited since late 2007. Samsung Electronics led the gains, along with healthcare and financial stocks.
Australia’s main index added 0.6% while Japan’s Nikkei was closed for a holiday. E-Mini futures for the S&P 500 rose 0.2%.
Wall Street hits record highs
Wall Street reached record highs on Friday, with the S&P 500 surpassing 2,500 points as telecommunications shares rose and technology bounced back after two days of declines.
The Dow Jones Industrial Average rose 0.29% to end at 22,268.34 points, while the S&P 500 gained 0.18% to 2,500.23. The Nasdaq Composite added 0.3% to 6,448.47.
8:42 AM Good Morning and welcome to markets live blog. Catch all live market action here.
First Published: Mon, September 18 2017. 15:17 IST