Anand James, Chief Market Strategist, Geojit Financial Services
Market hesitated to take a stance amid weak cues from European peers fuelled by political instability in Spain. Nifty looked reluctant to push beyond its 50-day moving average, but outcome of Friday's GST council meeting and the upcoming earnings season will decide the direction of the market in the short run.
3:44 PM Sectoral trend
3:42 PM Sensex heatmap at close
3:38 PM Markets at close
The Sensex settled at 31,592, down 79 points, while the broader Nifty50 ended at 9,888, down 26 points.
These 18 stocks from BSE Smallcap index up between 10% and 20%
Gravita India, Ramky Infrastructure, D-Link (India), Ashapura Minechem, Tinplate Company of India, TVS Electronics, Walchandnagar Industries and Jai Corp were among 18 stocks from the small-cap index that rallied between 10% and 20% on the BSE in otherwise range-bound market. READ FULL REPORT
Global stock market party settles down
Global stocks came off record highs and the euro held near a seven-week low on Thursday as investors prepared to parse minutes from the European Central Bank’s last meeting for clues to its exit from ultra-easy monetary policy.
Political tensions emanating from Spain, where one of its richest regions Catalonia has pledged to declare ‘independence in days’, was also at the forefront of concerns for European markets.
Spain's government bond yields rose to their highest level since March while Madrid's stock market headed for its biggest weekly loss of the year.
3:20 PM Buzzing stock
Hatsun Agro Product lost over 2% to Rs 760 on BSE, with the stock sliding on profit booking after Wednesday's rally triggered by SBI MF purchasing bulk shares of the company.
3:13 PM Top losers on Nifty in last leg of trade
Shell companies crackdown
As many as 450,000 directors may face disqualification for their association with shell companies, Union minister P P Chaudhary said on Thursday as the government steps up its fight against the black money menace. READ MORE
Apex Frozen Foods hit a new high of Rs 364, up 8% on BSE in intra-day trade, appreciating 108% against its initial public offer (IPO) price of Rs 175 per share. CLICK HERE FOR DETAILS
Arundhati Bhattacharya made SBI more relevant in just 4 years
State Bank of India (SBI) Chairman Arundhati Bhattacharya’s four-year term, which will end on October 6, has been eventful. Her tenure also coincided with rising bad loans of the banking sector, and the subsequent fire-fighting that is going on the resolution front. Besides that, she prepared the ground for the merger of its associate banks with itself which was completed earlier this year. READ FULL REPORT
At 1:40 pm, the Sensex was trading at 31,655, down 16 points, while the broader Nifty50 was ruling at 9,909, down 5 points.
Sensex at 32,500 by year-end?
Indian stocks are set to rise further over the coming year but will lag predictions from three months ago on worries shares have become too pricey and that the economy is headed for a rough patch, a Reuters poll showed. READ FULL REPORT
Bhansali Engineering Polymers hits record high
Bhansali Engineering Polymers hit a new high of Rs 115, up 16% on the National Stock Exchange (NSE), extending its previous day’s rally on back of heavy volumes. In past two trading sessions, the stock zoomed 39% from Rs 83 on October 3, 2017.
The BSE said, the exchange has sought clarification from Bhansali Engineering Polymers on October 5, 2017, with reference to increase in volume. READ MORE
Credit growth on consumer front doing well: SBI's new head Rajnish Kumar
Corporate credit growth is limited but credit is growing well on the consumer front, the newly named head of SBI, Rajnish Kumar, said in a conference call on Thursday. He will take over from current Chairman Arundhati Bhattacharya, who will complete her four-year term on Friday.
Kumar also said that the Indian economy is undergoing a transformation and that the banking industry is facing huge challenges. Kumar added that SBI would completely transform in the next three years. READ MORE
12:28 PM BUZZING STOCK
Natco Pharma rose 4.10% to Rs 993.45 on BSE, extending yesterday's 20% rise triggered by Mylan receiving US drug regulator's approval for generic version of Copaxone.
On the BSE, 1.67 lakh shares were traded in the counter so far, compared with average daily volumes of 60,127 shares in the past one quarter. The stock had hit a high of Rs 1,049.75 and a low of Rs 988.60 so far during the day.
Fake stock tips continue to circulate
The Securities and Exchange Board of India's (Sebi's) and Telecom Regulatory Authority of India's (Trai's) joint effort to curb messages on mobile phones (SMSes) with fake stock tips has not yielded the desired result.
Many continue to receive these, claiming to be sent from leading brokerages. Sources say the regulators and police cyber teams haven't been able to identify the people doing this. Regulators can only warn investors of such traps, said an official at one. READ MORE
Vedanta: Triggers outweigh worries
The Vedanta stock may have come off its peak seen in the last fortnight of September, but the company’s business prospects remain firm. The temporary closure of almost half of its captive power capacities (1,605 MW out of 3,615 MW) at Odisha aluminium smelter due to environmental reasons is one factor that has impacted street sentiment, but broader markets too have been under pressure.
Nevertheless, analysts don’t see much impact of the power capacity closure till remaining capacities are functional and the matter does not aggravate further. READ MORE
Services sector activity expands
Services sector activity in India expanded for the first time in three months in September as it rebounded from GST-related contractions, driven by a surge in new business orders that supported job creation, a monthly survey said today.
The Nikkei India Services PMI Business Activity Index rose to 50.7 in September -- from 47.5 in August -- a reading that pointed to a slight pace of expansion. READ MORE
Investment by foreign telcos goes up in smoke
Sistema Shyam Teleservices is expected to get a final nod for its merger with Reliance Communications in a few days. But this is one merger deal which the Russian company may not like to remember as part of its Indian telecom journey.
Most foreign telcos, which earlier made a beeline for the high-growth industry, have hardly found any return on India investments. The process of their exit at a substantial loss is being accentuated by the onslaught of Reliance Jio in the market. READ MORE
11:28 AM Market Check
Benchmark indices continued trading flat on the late morning deals. At 11:28 am, the S&P BSE Sensex was trading at 31,657, down 14 points while the broader Nifty50 index was trading at 9,906, down 8 points
11:11 AM Slips in trade
SBI Life Insurance Company was down 1% at Rs 693 in intra-day trade, falling below its initial public offer (IPO) price of Rs 700 per share on the National Stock Exchange (NSE) and BSE. The stock hit its lowest level since listing on Tuesday, October 3, 2017.
SBI Life Insurance Company had made a quite debut by listing at Rs 735, a 5% premium against its issue price of Rs 700 per share on the NSE. READ MORE
VST Tillers Tractors surged 10% to Rs 2,285 on BSE in early morning trade after the company reported 31% growth in total sales at 3,196 units in the month of September. It had sold 2,440 units in the same month last year.
The company sold 1,855 units of power tillers for the month, while the tractors sales of the company stood at 1,341 units for the month ended September 2017. READ MORE
Fresh investments to remain muted as slowdown continues
With the Reserve Bank of India (RBI) keeping its key rates unchanged, India Inc leaders said they do not expect the investment cycle to revive in the near future — especially for the capital-intensive sectors.
India's bank rates are already among the highest in the world which is making it easier for foreign companies, who borrow abroad, to buy out stressed companies while local companies suffer, say chief executive officers (CEOs). READ MORE
Prataap Snacks makes strong debut
Prataap Snacks has made a strong debut on bourses by listing at Rs 1,270, a 35% premium against its initial public offer (IPO) price of Rs 938 per share on the National Stock Exchange (NSE). On BSE, the stock listed at Rs 1,250, a 33% above its issue price.
The Rs 482 crore IPO of Prataap Snacks was subscribed 47.29 times, data from stock exchanges showed. The portions reserved for qualified institutional buyers (QIBs) and retail investors were subscribed 77 times and 8 times, respectively. READ MORE
IPO Note by Geojit Financial Services
Godrej Agrovet Ltd.– “Rating – Subscribe”
Price Range Rs 450 - Rs 460
Godrej Agrovet Ltd. (GAVL) is a well diversified R&D based agri-business company from the house of Godrej, with a major role in all its business verticals like animal feed (53% of revenue), crop protection (15% of revenue), oil palm (16% of revenue), dairy business (21% of revenue) and processed foods.
With its quality and innovative products and rising demand in each of its business verticals provides ample scope to further improve its revenue generation. At an upper price band of Rs 460, GAVL is available at a P/E of 35x on FY17 EPS (Post IPO dilution). With better future prospects in hand, we recommend 'Subscribe' to the issue, with a medium to long term perspective.
International funds gain on rupee fall, commodity gain
International funds have emerged the best-performing ones in the past month, with rupee depreciation and a rise in commodity prices propping their returns. Average category returns for the past month have been 3.6%, higher than all other categories, including diversified equity funds.
The benchmark Sensex on the BSE exchange slid 0.1% in the month. Within the international category, investors have a few choices and they need to look at the country and theme to assess if a particular fund is suitable, say experts. READ MORE
IT majors might disappoint in Sept quarter
The July-September quarter is usually a strong period for India's top information technology (IT) service companies but this one is likely to be different. Analysts estimate the sequential revenue growth on a constant currency basis in that quarter for the top five IT companies at no more than 2-3%.
Further, the expected revival in spending in the key segment of banking, financial services and insurance (BFSI) is also unlikely e soon, affecting revenue growth of the sector in FY18. READ MORE
Nearly half of stocks down 20% from 52-week highs
Nearly half the stocks in the broader market have come off more than 20% from their yearly highs, even as the benchmark indices are only three per cent shy of new record highs.
In the BSE 500 index, 91% of India's market capitalisation, 199 scrips have lost 20% or more from their highs as investors have turned wary, due to deteriorating fundamentals and lack of earnings growth.
Similarly, 237 of 850 components in the BSE Small cap Index have lost more than 20% from their one-year peak, with 80 of these plunging over 50%. READ MORE
9:25 AM Nifty Realty was the top sectoral gainer
9:23 AM Sectoral trend
9:21 AM Top gainers and losers on BSE Sensex
9:19 AM Broader Markets
Broader markets were trading a tad higher than the fromline indices with BSE Midcap and BSE Smallcap indices up 0.3% and 0.4% respectively
9:18 AM Markets open
Benchmark indices open flat on Thursday after the Reserve Bank of India (RBI) held its policy rate steady near seven-year lows on Wednesday after inflation surged, but still looked to prop up the cooling economy by spurring banks into lending more.
At 9:17 am, the S&P BSE Sensex was trading at 31,697, up 25 points while the broader Nifty50 index was trading at 9,923, up 8 points
Technical calls by Prabhudas Lilladher
BUY AUROBINDO PHARMA
CMP: Rs 707.65
TARGET: Rs 800
STOP LOSS: Rs 680
BUY SOUTH INDIAN BANK
CMP: Rs 28
TARGET: Rs 32
STOP LOSS: Rs 27
CMP: Rs 1053.35
TARGET: Rs 1750
Nifty view by Prabhudas Lilladher:
Nifty has managed to bounce well after taking a support at 9,700 levels; it now needs to cross the hurdle of 9,950-10,000 levels for this rally to go on. The support for the day is seen at 9,870 while the resistance is seen at 9,960.
Forex, G-sec buying to be made easier for retail clients
The Reserve Bank of India (RBI) has set the ball rolling to ease the pain of retail investors wanting to deal in foreign exchange (forex) and government securities (G-secs). The central bank has proposed to provide retail clients direct access to the inter-bank electronic trading platform, the mechanism used for order-matching. READ MORE
Peer-to-peer NBFC lending restricted to 36 months or less
The Reserve Bank of India (RBI) on Wednesday issued rules for non-banking financial companies (NBFCs) that want to operate as peer-to-peer (P2P) lending platforms. The central bank has specified that the maturity of the loans must not exceed 36 months.
The aggregate exposure of a lender to all borrowers at any point of time, across all P2Ps, would be subject to a cap of Rs 10 lakh. The same limit applies to aggregate loans taken by a borrower at any point of time, across all P2Ps. READ MORE
Govt keeps oil excise hike option open
A day after the Union government cut the excise duty on petrol and diesel by Rs 2 a litre, a senior finance ministry official hinted on Wednesday that the levy could be hiked to the previous level once global crude oil prices cool down. READ MORE
Godrej Agrovet IPO subscribed 52% on Day 1
The initial public offer of Godrej Agrovet was subscribed 52 percent on the first day of bidding on Wednesday. The IPO to raise around Rs 1,157 crore received bids for 93,76,928 shares against the total issue size of 1,80,27,464 shares, data available with the NSE showed.
Click here for full report
Rajnish Kumar to be new SBI chairman
Rajnish Kumar was on Wednesday named the new chairman of State Bank of India (SBI), the country’s biggest lender. He would take over from current Chairman Arundhati Bhattacharya, who will complete her four-year term on Friday.
Kumar, 59, is at present one of the four managing directors at SBI, looking after the National Banking Group — which covers the retail, SME and agriculture business verticals. He had joined the lender in 1980. READ MORE
RBI pauses, revises growth forecast down sharply
The Reserve Bank of India (RBI) kept its policy rates unchanged on Wednesday, revised its inflation forecast for the second half of the fiscal year, and lowered the growth forecast sharply, while asking the government not to be too ambitious with its fiscal stimulus package.
Patel said in an interaction with the media that between the states and the Centre, there was hardly any space left for the fiscal stimulus that the government was contemplating. READ MORE
RBI Governor Urjit Patel
The Nifty50 futures on the Singapore Stock Exchange were trading 21.50 points lower at 9926 indicating a flat opening for the domestic market.
8:44 AM Asia Check
Asian shares were a tad firmer on Thursday, taking their cues from strong US data although holiday-thinned trade and uncertainty about the impact of recent hurricanes on the US economy are likely to keep investors cautious.
MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat while Japan's Nikkei ticked up 0.1%.
In Asia on Thursday, trade is expected to remain subdued with China, Hong Kong and South Korea closed for public holidays and analysts cautioning against reading too much into index moves.
Wall Street edged up
US stocks edged up to extend their run of record closing highs as data on the services sector added to signs of strength in the economy and prospects for earnings.
The Dow Jones Industrial Average rose 19.97 points, or 0.09%, to end at 22,661.64, the S&P 500 gained 3.16 points, or 0.12%, to 2,537.74 and the Nasdaq Composite added 2.91 points, or 0.04%, to 6,534.63.
8:42 AM Good Morning and welcome to market's live blog. Catch all live market action here
First Published: Thu, October 05 2017. 15:35 IST