Vinod Nair, Head of Research, Geojit Financial Services
The outcome from GST council will decide the trajectory of some sectors like Consumer durables, Auto ancillaries, Infra and building products. Whereas, weaknesses in global market and rising oil prices may push investors to turn conservative on the board market.
3:50 PM Sectoral trend
3:43 PM Sensex heatmap at close
Markets at close
The S&P BSE Sensex ended at 33,314, up 63 points, while the broader Nifty50 was ruling at 10,321, up 12 points.
3:29 PM Top five gainers on Nifty
At 3:05 pm, the S&P Sensex was trading at 33,231, down 19 points, while the broader Nifty50 was ruling at 10,294, down 14 points.
177 items to become cheaper as GST Council decides to trim 28% slab
In the first half of the meeting taking place in Guwahati, the Council decided to trim the 28 per cent slab to just 50 items, as against 227 items currently. High-end items, including automobiles, washing machine, refrigerator, sin goods like paan masala and cigar are among these 50 items. This is the biggest reduction seen since the GST implementation on July 1. READ FULL REPORT
Mahindra & Mahindra Q2 profit beats estimates
Mahindra & Mahindra reported a 25 per cent jump in quarterly profit, beating street estimates. Net profit for the quarter ended September 30 rose to Rs 1,332 crore ($204.73 million) from Rs 1,067 crore in the year-ago quarter. READ FULL REPORT
M&M Board approves 1:1 bonus issue. The stock trades over 2% higher at Rs 1394.
2:15 PM SBI gains 7% post Q2
State Bank of India (SBI) has moved higher by 7% to Rs 338, bouncing back 8.5% from intra-day low on the BSE, after the bank’s assets quality in September quarter (Q2FY18) improves on sequential basis. The stock hit a low of Rs 310 in intra-day trade. READ MORE
2:05 PM GST Council Meet update
Only 50 items remain in the 28% slab: Chewing Gum, Chocolates, Detergent, granite, marble now in 18% slab
Interview of the day
State-run Hindustan Petroleum Corporation (HPCL) is approaching a new era in its history with the Oil and Natural Gas Corporation (ONGC) set to grab a majority stake in the company. In this backdrop, HPCL Chairman and Managing Director M K SURANA talks to Business Standard about the current global pricing scenario, the scope of a Mangalore Refinery and Petrochemicals Limited (MRPL) acquisition after the ONGC deal, and the company's expansion plans.
1:19 PM How SBI performed so far in today's trade
1:14 PM SBI Q2 earnings
SBI made Rs 16,175.20 crore worth of provisions for non-performing assets, which was higher than Rs 12,125.26 crore provisions it made in June quarter and Rs 7,669.66 crore provisions in year-ago quarter.
SBI Q2 earnings
Net interest income (NII) came in at Rs 18,595 crore
SBI Q2 earnings
SBI's standalone net profit dropped 38% year-on-year at Rs 1,581 crore.
12:59 PM Market Check at 1 pm
Balkrishna Industries extends rally post Q2 results; 1:1 bonus issue
Balkrishna Industries hit a record high of Rs 1,974, up 8%, extending its Thursday’s 2% gain on the BSE in an otherwise subdued market after the board recommended 1:1 bonus share.
“The board has recommended for issue of bonus shares to the members of the company by capitalization of free reserves in the ratio of 1 (one) bonus equity share of Rs 2 each fully paid up for every 1 (one) existing equity share of Rs 2 each fully paid up (i.e. in the ratio 1:1),” Balkrishna Industries said in a statement. READ MORE
Sun Pharma: Taro provides some respite
The performance of Taro, Sun Pharma’s US subsidiary, for the quarter ending September 2017 (Q2), while indicating that pricing pressure continues in the US market, has some positives.
The numbers show compared to the sharp fall in sales, gross margins fell at a slower pace. Taro also saw volumes grow by one per cent for Q2 and four per cent during the first half of FY18. The company clocked some market share gains as well. While these are positives, from an investors’ perspective, it may not be enough to significantly move the needle for Sun Pharma’s stock.
L&T nears all-time high on orders win of Rs 4,023 crore
Larsen & Toubro (L&T) hit a 52-week high of Rs 1,260, up 3.5% on the BSE after the company said its construction arm has won orders worth Rs 4,023 crore across various business segments.
L&T said its heavy civil infrastructure business has bagged orders cumulatively worth Rs 1,906 crore including a major government order worth Rs 1,824 crore in a joint venture with an international partner – Seaport Dredging Private Limited, for the construction of various marine facilities. READ MORE
Higher revenue visibility to drive Bharat Forge's prospects
The Bharat Forge stock has been hitting its 52-week highs on expectations of stronger growth in FY18 and FY19, led by both the auto and industrial segments. Recent quarterly results, including that of the September quarter (Q2), have increased investor confidence. Most brokerages have increased their earnings estimates as well as target prices given the recovery in key segments. While there are multiple triggers, the company’s Q2 results have been the most recent. READ MORE
Mahindra Logistics falls below issue price after quite debut
Mahindra Logistics (MLL) was trading at Rs 422, below its issue price of Rs 429 per share, after making quite debut on the bourses.
On the National Stock Exchange (NSE), the stock listed at par of Rs 429, while on the BSE, it opened less than 1% higher at Rs 432. It touched low of Rs 420 on the NSE and of Rs 421 on the BSE. A combined 4.64 million shares changed hands on the NSE and BSE. READ MORE
11:00 AM Market Check
Divi's Labs gains as USFDA closes out warning letter for Vizag unit
Divi’s Laboratories rallied 8% to Rs 1,090 on the BSE in early morning deal after the pharmaceutical company said that the US health regulator has completed evaluation of company’s corrective actions in response to FDA’s warning letter dated April 13.
“Further to our letter dated 2nd November, 2017, Divi's Laboratories has been informed by the US Food and Drug Administration (US-FDA) that the Agency has completed evaluation of the Company's corrective actions in response to FDA's Warning Letter: 320-17-34 dated April 13, 2017,” the company said in a regulatory filing. READ MORE
NPS equity cap for govt staff may be raised to 50%
The pension regulator has approached the Centre to allow government employees to raise their investments in equity to 50 per cent from the current 15 per cent under the National Pension System (NPS).
This, it says, will help address the issue of declining interest rates. A committee of secretaries is looking at the request.
The Pension Fund Regulatory and Development Authority (PFRDA) wants it to be increased to 25 per cent under one scheme and 50 per cent under another. It has also sought a greater say for employees in choosing their fund managers and investment pattern. READ MORE
Sebi mulls 'out of the box' approach for effective corporate governance
Capital market regulator Securities and Exchange Board of India (Sebi) is exploring “out of the box” measures to improve corporate governance standard at India Inc.
Speaking at a corporate governance summit “Gatekeepers of Governance', Ajay Tyagi, chairman, Sebi said: “The need of the hour is to have a back-to-basics reconceptualisation of what sound corporate governance means.” READ MORE
Just Dial surges 20% on talks of takeover by Google
Just Dial surged 20% to Rs 551 on the National Stock Exchange (NSE) in early morning trade after the media report suggested that the US internet giant Google, a subsidiary of parent Alphabet, is in talks with the company to acquire its business.
Google has been talking to Just Dial for an acquisition for some time. Both the companies entered into exclusive talks about two months ago, the Business Standard reported quoting an investment banker familiar with the discussions. READ MORE
India Inc's credit ratio hits 5-year low of 0.97 in first half of FY18
India Inc’s credit health has further deteriorated in the current financial year (FY18), if rating action is to go by. The credit ratio — number of upgrades to downgrades of debt paper — is at a five-year low of 0.97.
In the first six months of the current financial year, rating agencies have upgraded 189 debt papers and downgraded 195. Debt worth nearly Rs 2.57 lakh has been downgraded in FY18, which is 1.5 times that of FY17’s, show data provided by the Securities and Exchange Board of India (Sebi). READ MORE
9:27 AM Top Sectoral gainer: Nifty PSU Banks
9:24 AM Sectoral Trend
9:22 AM Top Sensex gainers and losers
9:18 AM Markets open
Benchmark indices opens flat on Friday following Asian Markets which slipped on uncertainty about US tax reforms.
At 9:17 am, the S&P BSE Sensex was trading at 33,235, down 15 points while the broader Nifty50 index was ruling at 10,287, down 21 points
Few trading ideas by Prabhudas Lilladher:
BUY PIDILITE INDUSTRIES
CMP: Rs 812.75
TARGET: Rs 880
STOP LOSS: Rs 760
BUY ASIAN PAINTS
CMP: Rs 1195.60
TARGET: Rs 1270
STOP LOSS: Rs 1140
BUY KAJARIA CERAMICS
CMP: Rs 720.7 5
TARGET: Rs 790
Nifty outlook by Prabhudas Lilladher
Market continues to consolidate at these levels for now with THE Nifty holding the support of 10,250. The support for the day lies at 10,240, while resistance lies at 10,350. Select stocks are in round of momentum and we maintain a cautious view if Nifty breaches the level of 10,200 downside.
HDFC Standard Life IPO subscribed 4.89 times
HDFC Standard Life Insurance Company's initial public offer (IPO) was subscribed 4.89 times on the closing day of bidding on Thursday. The Rs 8,695-crore IPO, received bids for 1,07,50,87,700 shares against the total issue size of 21,97,59,218 shares, according to NSE data.
IIP data today
There is widespread expectation that the economy would pick up in the second quarter (Q2) of the current financial year (FY2017-18), compared to the previous three months when gross domestic product (GDP) grew 5.7% — the lowest so far in the Narendra Modi government’s tenure.
The Index of Industrial Production (IIP), which accounts for roughly one-fourth of industrial sector data in GDP — the rest constituted by corporate results — presents a case in point till August. The IIP data for September will be released on Friday; it remains a crucial component in measuring GDP — the Q2 numbers for which will be released by this month end.
GST Council may prune items in 28% slab
The GST Council may today consider reducing items in the 28% tax slab and slash rates for daily use items, plastic products and hand-made furniture as it looks to provide relief to consumers.
The 23rd meeting of the Council, being held here, will also deliberate on the suggestions made by Assam Finance Minister Himanta Biswa Sarma-headed GoM to cut tax rates for the composition scheme businesses to 1 per cent and lower rates for non-AC restaurants.
The Council may today rationalise rates in sectors where the total incidence of taxation has gone up because the goods were either exempt from excise or attracted lower VAT rates under the previous indirect tax regime.
8:54 AM Oil Price Check
Oil prices held firm, on course to log their fifth straight week of gains, on hopes of supply cuts by major exporters as well as continuing concern about political developments in Saudi Arabia.
The Nifty50 futures on the Singapore Stock Exchange were trading 51 points lower at 10326 indicating a negative opening for the domestic market.
Asian shares slipped on Friday on uncertainty about U.S. tax reforms after Senate Republicans unveiled a plan that differed from the House of Representatives’ version in several key areas, including a delay in the timing of a corporate tax cut.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1% while Japan's Nikkei lost 1.0%.
MSCI’s all-country equity index posted its first daily loss in more than two weeks on Thursday, ending its longest daily winning streak since 2003.
8:46 AM Wall Street slips
Wall Street stocks dropped on Thursday, weighed down by losses in Microsoft and other technology issues. The Dow Jones Industrial Average lost 0.43% to end at 23,461.94, while the S&P 500 declined 0.38% to 2,584.62. The Nasdaq Composite dropped 0.58% to 6,750.05.
8:45 AM Good Morning!
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First Published: Fri, November 10 2017. 15:38 IST