Market rundown by Vinod Nair, Head of Research at Geojit Financial Services
Market is facing resistance around 10k mark as participants are waiting on the sideline and awaiting earnings season for more clarity on direction. Earnings growth for the second quarter is likely to be subdued but on a QoQ basis it will be better. Sectors like Finance, Metals, Mining, Infra, Defence and Chemical are expecting some pick up which could limit a sharp cut in earnings forecast for FY18.
Realty shares in focus
Shares of realty companies have rallied by up to 20% on the BSE in intra-day trade after the real estate developer Sobha reported a good set of new sales volumes in July-September 2017 quarter (Q2FY18).
Besides Sobha, Purvankara, Ajmera Realty & Infra India and Marathon Nextgen have surged between 12% and 19% on the BSE. Kolte-Patil Developers, Anant Raj Industries, Prestige Estates and Delta Corp, Simplex Realty were up in the range of 3% to 4%.
3:41 PM FMCG index gains
3:39 PM Sectoral Trend: Realty and FMCG indices led the gains
3:37 PM Top gainers and losers on BSE Sensex
3:34 PM Broader Markets
In broader markets, BSE midcap index was a little changed (down 0.04%) while the BSE Smallcap index outperformed the frontline indices, up 0.6%
3:32 PM Markets at Close
In a choppy session, benchmark indices end flat but continued a steady recovery from recent losses, with consumer sector leading the way, but gains were capped as corporate results kick off later this week.
The S&P BSE Sensex settled the day at 31,846, up 32 points while the Nifty50 index ended at 9,989, up 9 points
Dwarikesh Sugar expects sales to rise
Dwarikesh Sugar Industries expects sales to rise by up to 15 percent in the 2017/18 crop year as production in Uttar Pradesh could jump to a record high, a top company executive said on Monday.
Farmers in the country's top sugar producing state where the company has its operations, have adopted an early-maturing cane variety that has boosted productivity, said Vijay Banka, the chief financial officer of the company.
Marksans Pharma share price rallied 8% in intraday on receipt of establishments inspection report for Goa plant.
The Mumbai-based pharma company informed exchanges that it has received establishments inspection report from the US Food and Drug Administration for Goa facility.
2:55 PM BUZZING STOCK
Jaiprakash Associates rose as much as 3.8% after the company approved transfer of certain assets and liabilities to unit Jaypee Infrastructure Development.
Note ban, GST made career's last year most eventful: Arundhati Bhattacharya
Arundhati Bhattacharya, who recently retired as the chairman of State Bank of India, the country’s largest bank, believes the problem of bad loans banks have been facing would be solved shortly. “I regret not seeing the end of the NPA (non-performing asset) story,” she says.
In an interview published in the Times of India on Monday, Bhattacharya, who served at the helm of SBI for four years, spoke on a range of issues – from NPAs to her winning mantra and her experiences as the first woman head of SBI. Click Here for are the highlights of her interview
Arundhati Bhattacharya, Illustration: Ajay Mohanty
These 15 stocks from BSE Smallcap index surge over 25% in 5 trading days
TVS Electronics, HEG, Ramky Infrastructure, Graphite India, Gujarat Alkalies & Chemicals, Arshiya and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) are among 15 stocks from the S&P BSE Smallcap index, which rallied more than 25% in first five trading days of the current month.
Thus far in the month of October, the S&P BSE Smallcap index has outperformed the market by gaining 3.6% as compared to 2.5% rise in the S&P BSE Midcap and 1.7% gain in the benchmark S&P BSE Sensex. READ MORE
2:00 PM Market Check
Benchmark indices were trading marginally higher in the afternoon deals as investors stayed on edge ahead of September-quarter earnings season.
At 2:00 pm, the S&P BSE Sensex was trading at 31,902, up 88 points, while the broader Nifty50 was ruling at 9,995, up 16 points.
1:44 PM Sobha surges 9% on September-quarter sales volumes
Sobha surged 9% to Rs 426 on the BSE in intra-day trade after the company said that it achieved new sales value of Rs 593 crore in July- September quarter (Q2FY18) was the highest in the past 10 quarters. The real estate developer had reported sales value of Rs 518 crore in the same quarter last fiscal.
“The company achieved new sales volumes of 861,084 square feet total valued at Rs 675 crore with an average realisation of Rs 7,840 per square feet in second quarter. Sales volume is marginally higher and total sales value is up by 22.5% as compared to Q2FY17,” Sobha said in an exchange filing.
Gold Bonds in Focus
The government on Friday announced several changes that would increase the attractiveness of sovereign gold bonds.
The most important change is that these bonds will now virtually be available on tap, as the issue that opened on Monday will remain open until December 27. However, the long-tenure issue will see the setting of price on a weekly basis.
for 5 reasons to invest in gold bonds
Adani Enterprises lost over 4% to Rs 383 in intraday trade after large protests were held across Australia on Saturday against the company’s proposed Carmichael coal mine on environmental concerns.
Economic growth to top 7% in next two quarters: Urjit Patel
Fostering monetary conditions conducive to economic growth were a constant consideration for Indian policymakers, but would not take priority over achieving the central bank's inflation target, Governor Urjit Patel told a newspaper on Monday. READ MORE
Markets reeling under problem of plenty?
It seems to be a problem of plenty in the Indian stock market, with foreign portfolio investors and domestic institutions acting almost in tandem in buying all available quality stocks, but the worry is who will be the buyer when these holdings get liquidated to book profit. READ FULL REPORT
12:21 PM Markets check
At 12:20 am, the S&P BSE Sensex was trading at 31,836, up 22 points, while the broader Nifty50 was ruling at 9,983, up 3 points.
Small investors flock to IPOs
Small investors are chasing initial public offerings (IPOs) like never before. Of the past 10 IPOs which have hit the market, five have seen more than a million applications from them. State-owned Cochin Shipyard’s IPO saw nearly two million applications, while the recently concluded one of Godrej Agrovet saw 1.5 million applications in the retail category, meant for investors applying for shares worth up to Rs 2 lakh. READ FULL ANALYSIS HERE
11:36 AM Buzzing stocks
Shares of pumps manufacturers such as Shakti Pumps (India), Kirloskar Brothers, KSB Pumps and Roto Pumps have rallied by up to 12% on BSE in intra-day trade after the Goods and Service Tax (GST) on pump parts has been reduced from 28% to 18%. READ FULL REPORT
Interview of the day
Amid rising worry over slowing economic growth, Nirmal Jain, chairman of IIFL, the financial services group, said that slowdown for a quarter or two is a small price to pay for the radical reforms implemented, as these would have a strongly positive impact on economic growth over the next five to 10 years. READ FULL INTERVIEW HERE
Nirmal Jain, Chairman, IIFL Group
11:02 AM Markets check
At 11:00 am, the S&P BSE Sensex was trading at 31,889, up 75 points, while the broader Nifty50 was ruling at 10,001, up 21 points.
10:45 AM Buzzing stocks
Shares of jewellery companies were trading higher by up to 9% on BSE in early morning trade on expectation of revival in sales after the government revoked an order that mandated PAN and Aadhaar cards for purchases above Rs 50,000. READ MORE
Tata Teleservices closure may cost the group dear
With the curtains likely to be drawn on Tata Teleservices soon, the group is staring at some serious challenges — paying debt of over Rs 28,000 crore to banks, deciding the fate of over 6,000 employees and battling the realisation that despite investing over Rs 50,000 crore (based on estimates) through the years, it would be able to recover little. READ FULL REPORT
10:20 AM Buzzing stock
Sun Pharma Advanced Research (SPARC) has dipped 15% to Rs 332 on BSE in early morning trade after the company said its two pivotal phase III studies of Baclofen GRS for treatment of spasticity in patients with multiple sclerosis did not meet the primary end point in placebo controlled studies. READ MORE
10:00 AM Nifty outlook by Angel Broking
If the Nifty50 manages to continue the positive momentum, then the index could extend the gains upto its resistances of 10,050-10,140. On the flipside, 9,880 is now a crucial support for this week, which if breached, could lead the index to resume the corrective trend to test the recent low.
9:56 AM Top five gainers as Nifty50 reclaims 10,000
Tata Teleservices tanked 15% following news reports that the Tata Teleservices is likely to wind down operations in phases, and has had discussions with the government.
9:28 AM Sectoral trend
9:25 AM Sensex heatmap at open
The BSE Midcap and the BSE Smallcap indices outperformed slightly to gain 2% each.
9:21 AM Markets at open
At 9:20 am, the S&P BSE Sensex was trading at 31,807, down 6.38 points, while the broader Nifty50 was ruling at 9,969, down 10 points.
Q2 earnings preview
India’s top 50 listed firms, which comprise the benchmark NSE Nifty50 index, are expected to report a mild recovery in earnings during the July-September 2017 quarter, driven by a relatively good show by banks and commodity producers.
However, domestic manufacturers and information technology (IT) exporters are likely to continue in the slow lane due to a combination of the disruption due to the goods and services tax (GST), poor demand, and rise in input costs. READ MORE DETAILS
Nifty outlook by Prabhudas Lilladher
Nifty is now very likely to re-test the previous high as technically we see signs of improvement as RSI has bounced back from oversold and getting into a trend. The support for the week is seen at 9,820 while resistance is seen at 10,130.
DABUR – BUY
CLOSE – Rs 316
TARGET – Rs 325-330
Nifty outlook by Devang Shah
Short-term outlook for the market remains negative till Nifty trades below 10,095 levels and expecting target of 9,640-9,480 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. READ MORE
Mustard seed prices at the Jaipur markets were trading at Rs 3,900 a quintal. In the week ahead, prices are expected to head towards Rs 3,940 a quintal. CLICK HERE FOR MORE
Wall Street update
The S&P 500 eased on Friday, ending a six-day run of record highs as the first monthly decline in US nonfarm jobs in seven years dampened sentiment and pharmacy shares fell on Amazon competition fears. The Nasdaq ended up for a ninth straight day, however, and set its sixth straight record high close, its longest such streak since seven records in February.
The Dow Jones Industrial Average fell 1.72 points, or 0.01% to end at 22,773.67, the S&P 500 lost 2.74 points, or 0.11% to 2,549.33 and the Nasdaq Composite added 4.82 points, or 0.07% to 6,590.18.
8:51 AM Asian markets
Chinese shares climbed on Monday after a week-long break as a disappointing survey on the country’s service sector did little to dent optimism on global growth.
Liquidity was lacking with Japan and South Korea on holiday and a partial holiday in the United States where stocks will be open but bonds will be closed. The Chinese blue-chip CSI300 index rose 1.9% to heights not seen since late 2015, partly in a delayed reaction to a targeted easing by the country’s central bank announced a week ago.
Australian stocks still managed to put on 0.7%, while Nikkei futures added 0.1% even though the cash market was shut. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1%, having rebounded by 1.7% last week.
At 8:45 am, SGX Nifty was trading at 9,984, down 35 points or 0.36%.
8:49 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Mon, October 09 2017. 15:30 IST