Vinod Nair, Head of Research, Geojit Financial Services
Noise surrounding the global market continued to impact the liquidity in domestic market. But, the impact is narrowing due to a feeling that the risk is short-lived. FIIs continued to pull out their exposure while liquidity from DIIs increased on expectations of a pickup in economic growth momentum.
3:44 PM Top sectoral loser
Nifty Pharma index extended losses for the third day to end 1.5% lower.
3:39 PM Top Sensex gainers and losers
3:37 PM Market breadth
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,331 shares rose and 1,237 shares fell. A total of 150 shares remained unchanged.
3:36 PM Broader markets
The BSE Midcap and the BSE Smallcap indices outpeeformed to add 0.2% and 0.3%, respectively.
3:35 PM Markets at close
The Sensex ended at 31,661, down 147 points, while the Nifty50 settled at 9,916, down 36 points.
Asian markets at close
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5% and Tokyo's Nikkei hit a four-month low and closed down 0.1%. South Korea's KOSPI index ended down 0.3% at a near four-week low. China's Shanghai Composite settled little changed, while Hong Kong's Hang Seng shed 0.4%.
3:25 PM European markets
European shares opened lower. The pan-European STOXX 600 index fell 0.3% with an index of banks losing 0.5%. France's CAC 40 and Britain's FTSE 100 were also down 0.2% and 0.5%, respectively.
3:21 PM Nifty holds above 9,900
Top five losers on the index
Morgan Stanley on GDP growth
Economic activity in the country lost some pace amid GST related disruptions but underlying growth momentum remains strong and the country may clock 6.7 per cent growth this fiscal, says a Morgan Stanley report. READ FULL REPORT
3:07 PM Markets check
At 3:05 pm, the Sensex was trading at 31,679, down 130 points, while the Nifty50 was ruling at 9,921, down 30 points.
Bajaj Finance surpasses IndusInd Bank in market cap
Bajaj Finance had a market capitalization (m-cap) of Rs 103,196 crore, which was Rs 2,298 crore more than IndusInd Bank’s m-cap of Rs 100,898 crore, the BSE data shows. READ MORE
RIL to turn ex-bonus tomorrow
Reliance Industries (RIL) was up 1% at Rs 1,650, extending its 6.6% surge in past five trading sessions on BSE, after the company fixed September 9 as the record date for 1:1 bonus issue. The stock will turn ex-bonus tomorrow on September 7.
Shankara Building Products rallies 124% since listing
Since listing on April 5, 2017, the stock price of the company zoomed 124% from Rs 633, as compared to 6% rise in the S&P BSE Sensex. It soared 2088% against its initial public offer (IPO) price of Rs 460 per share. CLICK HERE FOR DETAILS
Alternative investment funds gain traction, draw Rs 1 lakh cr
With buoyancy in the capital markets, investors are increasingly looking at Alternative Investment Funds (AIFs), which offer investment flexibility. According to data from the Securities and Exchange Board of India (Sebi), investment commitments were worth Rs 1 lakh crore as of June 2017, a fourfold jump from Rs 24,873 crore two years earlier. READ MORE
1:52 PM Apex Frozen Foods
Apex Frozen Foods is locked in upper circuit of 5% at Rs 234 on the National Stock Exchange (NSE), with no sellers witnessed on the counter. The stock has frozen maximum upper limit of the day for third straight trading sessions since its listing on September 4, 2017. CLICK HERE FOR MORE
BRNL's IPO not yet the road to travel
The portfolio of assets is large, with five operating and one under-construction project, totalling 1,622 km across Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha. However, the initial public offering (IPO) is unattractive, due to weak financial performance in the past and the valuations. READ MORE
Ashok Leyland signs MoU with Russian, Indian firms
Ashok Leyland Defence Systems (ALDS), part of Hinduja Group flagship Ashok Leyland, has signed a Memorandum of Understanding (MoU) on cooperation with Rosoboronexport (ROE), Russia, and an Indian firm ELCOM Group, to provide tracked vehicle solutions to Indian armed forces. CLICK HERE FOR FULL STORY
Raghuram Rajan on demonetisation: We may never know real cost and benefits
“We still have to wait for the full evolution of the data to understand what exactly the cost and benefits have been. It may be that we never know because we do not measure some of the areas where demonetisation had an impact because those were part of the informal economy,” said Rajan. He, however, said the cost of demonetisation has been quite substantial.
“What (the impact) is because of demonetisation, what is because of banking sector stress, what is because of anticipation of the goods and services tax... All three are happening at the same time. So I don’t think you can pinpoint and say exactly this much, but analysts have made an estimate — 1 per cent and 2 per cent of gross domestic product (GDP) in terms of the growth cost,” said the former RBI governor. READ MORE
File photo of former RBI Governor Raghuram Rajan. (Photo: Reuters)
12:53 PM Nifty FMCG cracks over 1% dragged by losses in Godrej Consumer Products, ITC and Dabur, down up to 2.4%'
12:38 PM Earnings Impact
Aegis Logistics surged 6% to Rs 196 on BSE after the company reported a healthy 47% year on year (YoY) growth in its consolidated profit after tax at Rs 47 crore in June quarter (Q1FY18). It had posted profit of Rs 32 crore in an year ago quarter.
Revenue grew 16% at Rs 858 crore during the quarter under review against Rs 740 crore in the corresponding quarter of previous fiscal year. This was primarily driven by increase in revenue from gas terminal division and liquid terminal division by 15.9% YoY and 13.4% YoY, respectively.
Gravita gains 5%
Shares of Gravita India advanced 5% intraday as it increased Chittoor plant capacity to 28000 mtpa.
The company raised capacity at the unit in Andhra Pradesh to 28000 mtpa from 12000 mtpa, making it the flagship plant of the Jaipur-based company.
ITC slips on downgrades
ITC fell 1.98% to Rs 276.80 on BSE after a couple of brokerages reportedly downgraded their ratings on the stock.
On the BSE, 1.84 lakh shares were traded in the counter so far, compared with average daily volumes of 11.71 lakh shares in the past one quarter. The stock had hit a high of Rs 281 and a low of Rs 276.25 so far during the day.
Merck rose 3.77% to Rs 1,252.10 after the company said that its holding company is considering full or partial sale of its consumer health business.
On the BSE, 5,980 shares were traded in the counter so far, compared with average daily volumes of 4,720 shares in the past one quarter. The stock had hit a high of Rs 1,280 and a low of Rs 1,205 so far during the day.
Bajaj Finance trades firm on QIP launch
Bajaj Finance was trading firm at Rs 1,811, up 1.3% in otherwise weak market after the company said that it has launched a qualified institutional placement (QIP) offering up to Rs 4,500 crore from institutional investors. The company set the floor price at Rs 1,771.90 per share.
The stock has hit a high of Rs 1,816 and a low of Rs 1,780 on BSE so far. A combined 388,237 shares changed hands on the counter on BSE and NSE. in comparision, the S&P BSE Sensex was down 183 points or 0.57% at 31,627. READ MORE
Natco Pharma's niche portfolio an opportunity
Natco Pharma, which had reported a strong June quarter performance, has seen a steep correction in its share price thereafter. The reason being an indication by marketing partner Mylan towards a delay in the launch of generic Copaxone, a drug used for the treatment of multiple sclerosis.
Mylan indicated that all major launches, including generic Copaxone, would be deferred to 2018, from 2017, looking at the ongoing challenges in the US and uncertain regulatory environment.
Click here for full report
Infosys delays Q2 results by two weeks to October 24
Infosys, India’s second-largest information technology (IT) services firm, has deferred announcing its second-quarter (Q2) results by nearly two weeks — the first time in recent years.
The bellwether IT services firm generally discloses its quarter numbers within 15 days of the beginning of the next quarter but this time, however, it has set October 24 as the date of announcement.
Infosys has attributed this delay to “logistics issues”. The following week has holidays on account of Diwali, resulting in a further delay by a week. READ MORE
Debt mutual funds cut exposure to debentures issued by PSUs
Debt mutual funds (MFs), which account for the bulk of sectoral assets, have cut exposure to debentures issued by public sector undertakings (PSUs) by nearly 200 basis points (bps) since April.
This comes amid deteriorating financial health of some of the state-owned institutions, particularly banks. At the end of March, exposure to PSU bonds and debt issuances stood at Rs 1.33 lakh crore or 11.7 per cent of the total of debt assets under management (AUM).
By July, fund managers had pruned it to Rs 1.26 lakh crore or 9.9 per cent of the AUM. READ MORE
10:29 AM NDTV Zooms
New Delhi Television (NDTV) has rallied 9% to Rs 62.20 on Wednesday, extending its three-session long gains of over 50% on BSE, in an otherwise weak market on back of heavy volumes.
The trading volumes on the counter nearly doubled with a combined 769,529 shares have already changed hands on BSE and NSE in first 10 minutes of trade.
Click here for more
Alternative investment funds gain traction, draw Rs 1 lakh cr
With buoyancy in the capital markets, investors are increasingly looking at Alternative Investment Funds (AIFs), which offer investment flexibility.
According to data from the Securities and Exchange Board of India (Sebi), investment commitments were worth Rs 1 lakh crore as of June 2017, a fourfold jump from Rs 24,873 crore two years earlier. Market participants attribute the surge to stellar returns from existing funds and easing of the regulatory framework.
Click for full report
Bajaj Fin launches Rs 4,500-cr QIP
Bajaj Finance has set the floor price of its proposed QIP worth Rs 4,500 crore at Rs 1,771.90 per share.
Earlier in July, the company had informed about the board meeting that gave its go ahead for the Rs 4,500 crore capital raise plan through a qualified institutions placement (QIP) to qualified institutional buyers. READ MORE
Sebi panel suggests splitting of CMD roles at listed companies
The Securities and Exchange Board of India (Sebi) is considering splitting the roles of chairman and managing director (CMD) at listed companies to prevent a potential conflict of interest arising out of the same person playing the two roles.
The capital markets regulator is also considering greater scrutiny of royalty payments by Indian arms of multinational companies (MNCs) to their foreign parents. Both these issues came up for discussion at a meeting held by a Sebi-appointed expert panel to improve corporate governance standards at India Inc, said sources. READ MORE
My focus was always under-promise and over-achieve: Raghuram Rajan
Banks were fooling themselves by not acknowledging their bad debt mess, says former Reserve Bank of India (RBI) governor Raghuram Rajan. Speaking to Anup Roy on the sidelines of the release of his book “I do what I do” in Chennai, Rajan says through his speeches he had tried to warn about the impending dangers, which have largely come true now. He also reveals his plan for setting up a liberal arts university in south India as part of his continued engagement with the country.
9:39 AM Interview of the day
Flaring up of geopolitical tensions between North Korea and the United States have kept global investors on the edge since the past few weeks. MARC FABER, Editor and Publisher of The Gloom, Boom & Doom Report says that though the situation may remain tense, it will not escalate to a full-fledged war. Investors should not look at making huge returns right now, but should protect against the losses.
Read full interview here
Just Dial gains 5% after HDFC Mutual Fund bought 32.07 lakh shares, or a 4.6% stake, in the company at Rs 375 per share on Tuesday, bulk deal data on the National Stock Exchange showed.
9:24 AM Sectoral Trend
All sectoral indices were trading in red in the early morning trade, dragged mainly by pharma, realty, metal, banking and financial indices
9:21 AM Top gainers and losers on BSE Sensex
9:19 AM Broader Markets
Broader Markets were in line with the frontline indices with BSE Midcap and BSE Smallcap down 0.6% and 0.4% respectively
9:18 AM Markets at open
Benchmark indices opened lower woth Nifty opening below 9,900 levels, reacting to the drop in Wall Street in the overhight trade as growing concerns over another test by North Korea is keeping investors across the globe on the edge.
At 9:17 am, the S&P BSE Sensex was trading at 31,636, doen 173 points while the broader Nifty50 index was ruling at 9,889, down 62 points
Nifty Outlook from HDFC Securities
Nifty has been forming higher top and higher bottom formation on the daily charts. At Present, Nifty is placed above 5, 20, 50 and 100 DMAs, indicating bullish setup on time frames. It clearly seems that supply is getting absorbed on every dip and Nifty is climbing wall of worries.
All time high of 10,137 would remain next resistance, while support is now shifted upwards to 9,840. Oscillators are also showing strength on the charts. Considering the technical evidences, we advise remaining long in Nifty with stoploss of 9,840 on closing basis.
Trading ideas from HDFC Securities
Buy NCL Industries
CMP: Rs 240.15
SL: Rs 225
Target: Rs 270
Buy Godrej Properties
CMP: Rs 607
SL: Rs 580
Target: Rs 680
Top technical calls from Prabhudas Lilladher:
JK PAPER - BUY
CMP: Rs 106.85
TARGET: Rs 117
STOP LOSS: Rs 98
CENTURY PLY - BUY
CMP: Rs 242.85
TARGET: Rs 268
STOP LOSS: Rs 232
GMDC - BUY
CMP: Rs 147.25
TARGET: Rs 160
Nifty View from Prabhudas Lilladher
Nifty continues to move in a very narrow range and is witnessing resistance at every rise near the 9,900 level and is finding difficulty to surpass the 10,000 mark. We anticipate Nifty to be in a range bound zone in the near term and also due to global factors like the North Korean tensions, volatility can be expected. The support for the day is seen at 9,900 while resistance is seen at 10,000.
ICICI Lombard gets Sebi's approval for Rs 6,000 crore IPO
ICICI Lombard General Insurance Company has got capital markets regulator Sebi's go-ahead for its estimated Rs 6,000 crore initial public offer, which could be the first by a general insurer in the country.
ICICI Lombard is a joint venture between ICICI Bank and Canada-based Fairfax Financial Holdings Ltd. The IPO involves dilution of up to 86,247,187 equity shares of face value of Rs 10 each of ICICI Lombard General Insurance.
According to market sources, the IPO could be worth about Rs 6,000 crore. READ MORE
Govt freezes bank accounts of suspected shell firms
The bank accounts of 209,032 suspected shell companies have been frozen, the government said on Tuesday, while advising banks to be cautious about active ones not filing statutory returns.
The Registrar of Companies (RoCs) of 24 jurisdictions have deregistered these firms and because of that “the existing directors and authorised signatories of these companies will now become ex-directors or ex-authorised signatories,” the statement said. READ MORE
Two IPOs today
Dixon Technologies (India) expects to raise Rs 600 crore from its IPO today and plans to spend the proceeds on capacity expansion and debt repayment. It plans to offer about 33,93,425 equity shares of face value of Rs 10 each amounting to Rs 599.27 crore on the upper price band.
Bharat Road Network to open its IPO for subscription today aiming to garner around Rs 600 crore. At least 75 percent of the issue will be allotted on a proportionate basis to qualified institutional buyers, of which the company may allocate up to 60% of the QIB portion to anchor investors, on a discretionary basis.
Illustration by Ajay Mohanty
GDR manipulation: Sebi bars 19 companies from securities markets
Cracking the whip, Sebi on Tuesday barred 19 domestic and foreign entities from securities markets for manipulation in issuances of global depository receipts and warned several others including FIIs.
The regulator has imposed a ten-year ban on K Sera Sera and Asahi Infrastructure and Projects, which figured among the six companies whose GDR issuances were manipulated, while at least 26 entities including European American Investment Bank AG (Euram) have been warned that all their future dealings in Indian markets should be strictly as per regulations. READ MORE
Oil markets dip
Oil prices dipped on Wednesday as crude demand remained subdued on the back of refinery closures following Hurricane Harvey which hit the US Gulf coast 10 days ago.
US West Texas Intermediate (WTI) crude futures were at $48.63 barrel, 3 cents below their last settlement.
In international oil markets, Brent crude futures dipped 19 cents to $53.19 a barrel.
Gold up for fifth straight day
Gold was up for a fifth day on Wednesday as geopolitical risks over North Korea remained elevated, and as low US inflation concerns left some Federal Reserve officials backing delays in further interest rate hikes.
The Nifty50 futures on the Singapore Stock Exchange were trading 27 points lower at 9,947 indicating a flat opening for the domestic market.
Asian markets trade lower
Asian stocks tracked Wall Street’s slide overnight to slip on Wednesday while the dollar was on the defensive with tensions in the Korean Peninsula showing little signs of abating.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.15%.
Japan's Nikkei shed 0.55% and Australian stocks lost 0.3%.
South Korea's KOSPI was down 0.2% and on track for its fifth straight day of losses.
Wall Street cracks
US stocks sank yesterday, with the S&P 500 stumbling to its biggest single-day loss in about three weeks, as investors weighed fresh tensions with North Korea.
The Dow Jones Industrial Average fell 234.25 points, or 1.07%, to 21,753.31, the S&P 500 lost 18.7 points, or 0.76%, to 2,457.85 and the Nasdaq Composite dropped 59.76 points, or 0.93%, to 6,375.57.
8:39 AM Good Morning and welcome to market's liveblog. Catch all the live market action here
First Published: Wed, September 06 2017. 15:33 IST