Vinod Nair, Head of Research, Geojit Financial Services
Market has come out of the consolidation phase on account of continued uptrend in global market. Buying in metal and auto stocks with signS of improvement in demand added impetus to the market and closed near their fresh highs. Additionally, domestic macro data IIP & CPI inflation to be released today are expected to improve to 1.7% from -0.1% June and 3.2% vs 2.4% July, respectively.
Mutual funds' flow into equities at two-year high
Till September 7 2017, MFs have pumped in a net Rs 73,428 crore in equities, surpassing their previous high recorded two years ago. During the entire calendar year 2015 (CY15), they had made a net investment of Rs 72,199 crore in equities. In CY15, MFs reported net inflow of Rs 48,170 crore. READ FULL REPORT
3:51 PM Mahanagar Gas zooms 128% since listing
Since July 1, 2016, the stock appreciated by 128% from Rs 520, against 18% rise in the Nifty 50 index. It zoomed 181% against its initial public offer (IPO) price of Rs 421 per share. READ FULL REPORT
3:47 PM Sensex heatmap at close
3:39 PM Broader markets hit fresh highs
Broader markets outperformed to hit their fresh closing highs. The BSE Midcap and the BSE Smallcap indices added 1% each.
Markets at close
The Nifty50 index witnessed its second-best closing. The index settled at 10,093, up 87 points, while the Sensex closed at 32,158, up 276 points.
Equirus on DCB Bank
Given that 86% of DCB’s mortgage borrowers are self-employed, it could see some increase in mortgage NPLs in 2QFY18 due to the GST impact. However, we believe eventually, loss given defaults would be contained. Moreover, DCB has floating provisions of ~Rs 440 million. We have an ADD rating with an ERoE-based TP of Rs 210 corresponding to a 2.5x Sep’18 ABV of Rs 86.
3:24 PM Top five gainers on Nifty as index nears 10,100
Why you should bank on gold in these uncertain times
Gold has rallied 3.48 per cent over the past one month and is now trading above the Rs 30,000-mark in the Indian market. In the international market too, it has breached the $1,300 per ounce mark — a level it had been unable to cross for about 10 months. READ FULL REPORT
European bourses continued their relief rally, trading higher on Tuesday after stock markets in Asia and in the United States hit record highs as worries about Hurricane Irma and North Korea’s nuclear standoff eased.
All major trading centers and most sectors traded in positive territory as the The pan-European STOXX 600 index jumped to a one-month peak, although some investors questioned how sustainable current markets levels are. France's CAC 40 was up 0.4%, while Britain's FTSE 100 bucked the trend to lose 0.1%.
NBCC (India) rose over 3% to Rs 214 on BSE after the company said it was awarded two contracts in the capacity of project management consultant.
Markets extend gains
At 3:07 am, the Sensex was trading at 32,167, up 285 points, while the broader Nifty50 was ruling at 10,096, up 90 points.
3:00 PM Volatility index
India VIX eased nearly 6% to 11.
Divi's Laboratories leads gainers in 'A' group
Divi's Laboratories jumped over 9% to Rs 786. The stock topped the gainers in the BSE's 'A' group. On the BSE, 5.71 lakh shares were traded on the counter so far as against the average daily volumes of 99,000 shares in the past two weeks.
Reliance Securities on YES Bank
We expect YES Bank will sustain continued improvement in operating metrics led by dwindling headwinds on asset quality front and improving balance sheet growth, especially from retail segment. Hence, we maintain our BUY recommendation on the stock with a target price of Rs 2,051, based on 3.1x FY19E (earlier 1.9x) adjusted book value.
CD Equisearch on Skipper
The stock currently trades at 17.1x FY18e EPS of Rs 12.18 and 13.5x FY19e EPS of Rs 15.43. Notwithstanding near term stress in its polymer products business, regional capacities mostly set up on asset light model and strategic tie ups with Sekisui of Japan (for CPVC compound) and WAVIN of Netherlands for advanced plumbing solutions are not worthy of sidestepping. Sustenance of its engineering products business would rest on increased PGCIL investments in 13th Plan - also in North East and emerging T&D opportunities in South East Asia, Latin America and Africa.
We recommend buying the stock with a target of Rs 262 based on 17x FY19e earnings (peg ratio: 0.9 on 19% average earnings growth).
2:07 PM Buzzing stock
Tata Coffee hit a record high of Rs 175, up 17%, extending yesterday’s nearly 4% gain on the National Stock Exchange (NSE), after Equity Intelligence bought one million shares of Tata Group Company through open market. READ FULL STORY
1:44 PM Top five losers on Nifty in an otherwise positive market
1:36 PM Markets check
At 1:30 pm, the Sensex was trading at 32,055, up 173 points, while the broader Nifty50 was ruling at 10,057, up 51 points.
Force Motors has moved higher by 5% to Rs 4,300 on BSE in noon deals after the company said it has entered into a non-binding term sheet with Rolls-Royce Power Systems AG (R-RPS) to form an Indian Joint Venture company for producing engines (for power generation and rail application), and complete power generation systems, including associated spare parts for Indian and global markets. READ MORE
A new ITC is in the making, says Sanjiv Puri
Once heavily dependent on the cigarettes segment, corporate behemoth ITC has diversified over the past two decades into many businesses that now generates 58 per cent of its revenue. However, to stay future ready and hedge against volatility, it is now looking at newer segments which it expects would bring in higher growth.
Tata Sons to raise stake in TGBL, Tata Chemicals for Rs 1,458 cr
Tata Sons, the promoter of major Tata group companies, will hike its shareholding in Tata Global Beverages and Tata Chemicals by up to 6.84% and 4.39% respectively for a total estimated value of Rs 1,458 crore.
Tata Sons will acquire up to 4.31 crore shares or 6.84% stake in Tata Global Beverages Ltd (TGBL) from Tata Chemicals as a part of restructuring of its investment portfolio, TGBL said in a regulatory filing.
Tata Chemicals said Tata Sons will acquire up to 1.11 crore shares or 4.39% stake in the company from Tata Global Beverages Ltd (TGBL).
12:33 PM BUZZING STOCK
BPCL gained over 3% to Rs 529 on BSE after the company said that the Government of India conferred BPCL with Maharatna status. The stock had hit a high of Rs 529 and a low of Rs 512.55 so far during the day.
Indian banks to face $65-bn capital shortage by FY19, cautions Fitch
Flagging the negative effect of a weak capital base, ratings agency Fitch on Tuesday said Indian banks might require around $65 billion of additional capital to meet the new Basel-III capital standards by March 2019 (financial year 2018-19).
The ratings agency has reduced its capital requirement estimate to $65 billion from its earlier assessment of $90 billion.
Capital needs have fallen from its previous estimate of $90 billion largely as a result of asset rationalisation and weaker-than-expected loan growth, Fitch said. READ MORE
12:00 PM IndusInd Bank falls
IndusInd Bank fell more than 2% after hitting a record high of Rs 1,818 in early trade, dragged by profit booking.
The stock rallied 5.6% in previous session after the company entered into exclusivity agreement to evaluate with microfinance company Bharat Financial Inclusion for proposed potential strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure.
11:44 AM Market Check
Equity benchmarks extended gains in morning trade, with the Nifty reclaiming 10,050 level on support from pharma, realty, FMCG and PSU banks stocks.
The S&P BSE Sensex was trading at 32,057 up 175 points while the broader Nifty50 index was ruling at 10,055, up 49 points.
The BSE Midcap and Smallcap indices also extended gains to 0.8% each. About 1,327 shares advanced against 840 declining shares on the BSE.
HDFC Bank hits new high; surpasses TCS in market cap ranking
HDFC Bank hit a new high of Rs 1,840 on BSE on Tuesday in intra-day trade, surpassing information technology (IT) giant Tata Consultancy Services (TCS) in market capitalisation (market-cap) ranking.
HDFC Bank with market-cap of Rs 473,944 crore came in at number two position in overall ranking ahead of TCS which had market-cap of Rs 470,934 crore at 10:24 am; the BSE data showed.
Analysts at JP Morgan are overweight on the HDFC Bank, as they see the bank as the best-quality play in the current environment, given what they believe are its stable margins, healthy asset quality, consistent performance and superior management. READ MORE
HDFC Bank branch office in Mumbai
Porinju buys stocks
Shares of Liberty Shoes and Tata Coffee touched 52-week high, gaining 16% intraday as Equity Intelligence of Porinju Veliyath has bought stake in the companies.
Equity Intelligence India [P M S] bought 3,21,308 shares of Liberty Shoes at Rs 235.48 and bought 10,00,000 shares of Tata Coffee at Rs 150 on the NSE on Monday.
10:59 AM Earnings Impact
Speciality Restaurants lost 5.83% to Rs 116.40 on BSE after the company reported net loss of Rs 15.82 crore in Q1 June 2017, higher than net loss of Rs 5.60 crore in Q1 June 2016.
IndusInd-BFIL merger a win-win deal
After months of speculation, IndusInd Bank and Bharat Financial Inclusion (BFIL) ended the guessing game on Monday. The parties have entered into an exclusivity agreement for a potential amalgamation or any other suitable structure. While pricing or valuation-related details aren’t known, Romesh Sobti, MD & CEO, IndusInd Bank, states the transaction would be a share-swap deal.
READ FULL REPORT HERE
Godrej Industries gained 3% after its arm Godrej Agrovet received capital markets regulator Sebi's go-ahead to raise an estimated Rs 1,000-1,200 crore through an initial public offering.
The company had filed draft red herring prospectus (DRHP) with Sebi in July and received its 'observations' on September 8, which is very necessary for any company to launch public offer, as per the latest update with the markets regulator.
Tata Steel hits over 6-year high
Tata Steel hit an over 6-year high of Rs 692, up 4.7% on BSE in early morning trade after Tata Steel UK said that the British Steel Pension Scheme (BSPS) has been separated from itself and a number of affiliated companies. The stock was trading at its highest level since January 2011.
“Tata Steel UK has received confirmation from The Pensions Regulator that it has approved a Regulated Apportionment Arrangement (RAA) in respect of the British Steel Pension Scheme (BSPS). The BSPS has now been separated from Tata Steel UK and a number of affiliated companies,” Tata Steel said in a news release. READ MORE
Matrimony.com IPO subscribed 67% on Day 1
The initial public offer (IPO) of Matrimony.Com, which runs online match-making portals, was subscribed 67 per cent on the first day of bidding today.
The IPO, with an aim to raise over Rs 500 crore, received bids for 18,78,510 shares against the total issue size of 28,11,280 shares, data available with the NSE showed.
The portion set aside for qualified institutional buyers (QIBs) was subscribed 83 per cent and retail investors 1.19 times. READ MORE
Sebi may tighten norms for firms' audit committees
Capital markets regulator the Securities and Exchange Board of India (Sebi) is likely to tighten norms pertaining to constitution and functioning of the audit committees for listed companies. These committees act as independent oversight bodies responsible for transparency and accuracy in functioning of company and the board.
According to sources, the markets regulator plans to look at how India Inc is appointing members on the audit committee, their qualifications and whether they are discharging their duties, without undue influence of the promoters. READ MORE
Mutual funds diversify stocks amid inflows
Money managers are on the hunt for newer stocks, amid sharp and consistent inflows into equity schemes. Equity mutual funds (MFs) have added close to three dozen new companies to their portfolio.
This is besides the new listings through initial public offerings (IPO), where, too, they have invested heavily. Industry players say fund managers are increasingly researching newer stocks, beyond their traditional investment universe.
Some of the stocks to feature for the first time in equity MF portfolios are Sunteck Realty, DFM Foods, Lux Industries, Gufic Biosciences, among others
9:29 AM Nifty Metal was the biggest sectoral gainer, up over 1%
9:27 AM Sectoral Trend
9:25 AM Top Sensex gainers and losers
9:22 AM Broader Markets
The broader markets were trading in line with the frontline indices with BSE Midcap and BSE Smallcap indices up 0.5% and 0.6% respectively
9:19 AM Markets at open
Benchmark indices open higher tracking Asian peers with investors breathing a sigh of relief as North Korean fears eased slightly and the worst-case scenario from Hurricane Irma looks to have been avoided.
At 9:18 am, the S&P BSE Sensex was trading at 31,992, up 110 points while the broader Nifty50 index was ruling at 10,036, up 30 points
Technical calls from Prabhudas Lilladher:
CMP: Rs 126.85
TARGET: Rs 135
STOP LOSS: Rs 119
BUY TATA POWER
CMP: Rs 80.60
TARGET: Rs 87
STOP LOSS: Rs 76.50
BUY ASIAN PAINTS
CMP: Rs 1238.05
TARGET: Rs 1345
STOP LOSS: Rs 1190
Nifty View from Prabhudas Lilladher:
Nifty after a string of failed attempts finally crossed the barrier of 9,980 and closed above the 10,000, indicating a positive sentiment to bring in hopes for further upward movement in coming days. However, the support for the day is seen at 9,950 while resistance is seen at 10,050.
Buy and sell calls by Religare Securities
Last Close: Rs 394.80
Initiation range: Rs 389-392
Target: Rs 410
Stoploss: Rs 380
GAIL has witnessed fresh breakout from a consolidation pattern today i.e. on 11th Sep and looks all set for a fresh surge. Traders can use any dip to accumulate in the given range.
8:59 AM Stock recos by MOSL for today's trade:
ASHOK LEYLAND - BUY
Last Close: 116
Stop Loss: Rs 111
Target: Rs 125
HDFC BANK - BUY
Last Close: Rs 1,823
Stop Loss: Rs 1,770
Nifty Outlook by Motilal Oswal Securities:
Nifty index surpassed its immediate hurdle of 9980 zone and headed towards 10028 levels. It registered the highest daily close in last 23 trading sessions and managed to close above psychological 10000 mark. It formed a bullish candle on the daily chart and supports are gradually shifting higher. Now it has to continue to hold above 9,980 zone to witness an up move towards 10,050 then 10,080 levels while on the downside supports are seen at 9928 then 9,880 levels.
Jaypee Infratech to deposit Rs 2,000
To keep a check on the promoters, the court ordered Jaiprakash Associates (JAL), the original promoter entity of Jaypee Infratech (JIL), to deposit Rs 2,000 crore in the court by October 27 to protect the interests of over 30,000 homebuyers, who bought flats. If JAL intends to sell any land to deposit this money, such a sale should be done only with the prior consent and approval of the court.
The court also restricted the managing director and directors of both companies from travelling abroad without prior permission.
Click to read full report
Direct tax revenue jumps 17.5% in Apr-Aug
Direct taxes fetched 17.5% higher receipts to the exchequer for the first five months (April-August) of the current financial year (FY18), more than what was projected for the entire financial year. However, the growth rate slowed in August.
Direct tax collections, net of refunds, stood at Rs 2.24 lakh crore during the April-August period of FY18. This is 22.9% of the total budget estimates of direct taxes, which comprise personal income and corporate tax, for the current financial year. The government estimates to collect Rs 9.80 lakh crore from direct taxes in the current fiscal. READ MORE
IIP, CPI to be announced today
The government will release industrial production data for July post market hours. The growth rate of industrial output slumped to 1.7% in May from 8% expansion in the same month last year.
India’s retail inflation, which will be annuonced later in the day, is expected to have picked up to a five-month high of 3.20% in August, largely driven by higher food costs, a Reuters poll showed
Oil prices edge down
Oil prices edged down in early Asian trading on Tuesday, as traders weighed up the dampening effect on demand of Hurricane Irma versus refinery restarts in the wake of Hurricane Harvey that should lead to more crude oil processing.
International benchmark Brent crude was down 5 cents, or 0.1%, at $53.79 per barrel from the previous close.
US West Texas Intermediate (WTI) crude was down 4 cents, or 0.1%, at $48.03 a barrel.
The Nifty50 futures on the Singapore Stock Exchange were trading 49 points higher at 10074.50 indicating a positive opening for the domestic market.
8:37 AM Asian shares rise
Asian shares joined a global equities rally, hitting a 10-year peak on Tuesday with investors breathing a sigh of relief as North Korean fears eased slightly and the worst-case scenario from Hurricane Irma looked to have been avoided.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.1% to its highest level since late 2007. Japan’s Nikkei rose 1%.
8:36 AM S&P 500 hits record high
The S&P 500 surged over 1% to a record high close on Monday as tropical storm Irma caused less damage than expected in Florida, and after North Korea did not test-fire missiles over the weekend, which some had feared.
The Dow Jones Industrial Average rose 1.19% to end at 22,057.37 points in its largest one-day gain since February. The S&P 500 gained 1.08% to 2,488.11 and the Nasdaq Composite added 1.13% to 6,432.26
8:33 AM Good Morning and welcome to market's live blog. Catch all live market action here
First Published: Tue, September 12 2017. 15:35 IST