Market rundown by Anand James, Chief Market Strategist at Geojit Financial Services
Government's decision to stick to its budgeted borrowing limit eased the nerves of the investors and bargain hunting in the recently trampled stocks gave impetus to the domestic indices. Positivity from global markets, also added more legs to yesterday’s f&o related short covering, but with a long weekend ahead, followed by RBI rate decision and a series of macro data, traders opted to limit aggressive bets.
3:45 PM Nifty Chart for the day
3:41 PM Nifty Realty was the top sectoral gainer, up 2.6%
3:39 PM Sectoral Trend
3:37 PM Top Sensex gainers and losers
3:35 PM Broader Markets
Broader markets outperformed benchmark indices with BSE Midcap and BSE smallcap indices gaining 0.8% and 1% respectively. Both indices ended over 1% for the week
3:33 PM Markets at close
Benchmark indices pared gains to end flat, losing over 1.5% in the week on foreign fund outflows amid worries that the government may widen its fiscal deficit target of 3.2% of gross domestic product for the year ending in March 2018 to boost an economy that grew at a slower pace than expected.
The S&P BSE Sensex ended the day at 31,283, up 1 point while the broader Nifty50 index settled at 9,788 up 19 points
3:22 PM FMCG sector slips over 1%
3:14 PM Buzzing Stocks
MEP Infrastructure Developers surged 5.58% to Rs 102.10 on BSE after the company said it has secured a contract for collection of toll at all entry points to Delhi.
3:05 PM USFDA Nod
Drug firm Zydus Cadila has received final approval from the US health regulator to market doxycycline tablets, used for treatment of different types of bacterial infections such as acne and eye infection.
The company has received approval from the US Food and Drug Administration (USFDA) to market the drug in strengths of 50 mg, 75 mg, 100 mg and 150 mg, Zydus Cadila said in a BSE filing today.
2:59 PM Sectoral trend
2:46 PM BUZZING STOCK
Ganesh Benzoplast hit 52-week high of Rs 94.50, up 15% on BSE after the company said it has won a case against Pan Asia Industries, for recovery of outstanding dues of Rs 5.50 crore plus interest.
In past four trading sessions the stock rallied 35% from Rs 70.10 on Monday, September 25, 2017.
“The company has won a case filed u/s 138 of the Negotiable Instruments Act, 1881, against M/s Pan Asia Industries Limited, for recovery of outstanding dues of Rs 5.50 crore plus interest. The Hon'ble M. M. 33rd Ballard Pier Court passed an order directing M/s Pan Asia Industries ('the defaulter') to pay a sum of Rs 9.00 crore to Ganesh Benzoplast,” the company said in a BSE filing today. READ MORE
2:34 PM Markets Check
Benchmark indices extended morning gains with Nofty50 reclaiming the crucial 9,850 levels led by gains in realty, auto, metal and pharma sectors.
At 2:34 pm, S&P BSE Sensex was trading at 31,390, up 108 points, while the broader Nifty50 was ruling at 9,808, up 39 points.
2:19 PM Gold Check
Gold traded little changed on Friday amid pressure from a stronger dollar, but was headed for its biggest monthly fall this year amid rising prospects of a US rate hike in December.
Spot gold was nearly unchanged at $1,286.96 per ounce, on track to register a 2.5% decline in September, its largest monthly fall so far in 2017 and the biggest since November 2016.
However, it was set to end the quarter around 3.7% higher.
Energy firm ACME applies to Sebi for Rs 2,200-cr IPO
Renewable energy firm ACME Solar Holdings has filed preliminary papers with Sebi to raise Rs 2,200 crore through an initial public offering, according to draft papers filed with the markets regulator.
Funds raised through the issue would be used to pay debt and to finance the company's 200 MW solar power project in Rajasthan and for other general corporate purposes.
Besides, the company is considering a pre-IPO placement of up to 52,22,079 equity shares to certain investors for up to Rs 500 crore. READ MORE
Despite slowdown, India may become 3rd largest economy in 10 yrs: HSBC
Reforms over the past year have created disruption in India's GDP numbers, but the medium-term potential looks bullish, and considering the growth trend, it could become the world's third-largest economy in the next decade, says an HSBC report.
According to the global financial services major, although reforms over the past year have caused disruptions that will likely mean lower growth rates in the near term, they should allow India to unleash more of its undoubted potential over the medium term.
"Although just 3 per cent of global GDP today, India's trend growth should see it overtake Japan and Germany to become the world's third-largest economy within the next decade," HSBC said in a research note. READ MORE
Asian shares gain
MSCI’s broadest index of Asia-Pacific shares outside Japan bounced 0.4%, but was still down 1.7% for the week so far. For the quarter, it looked set to gain 4.7%.
Japan’s Nikkei was a fraction lower, though South Korea managed to rebound 0.8%. Shanghai shares firmed 0.2% but were flat on the week.
Hindustan Construction Company rose 6.8% to Rs 35 on BSE after the company said that lenders had decided to invoke the strategic debt restructuring scheme for its Lavasa township project.
1:06 PM Markets check
At 1:00 pm, S&P BSE Sensex was trading at 31,463, up 181 points, while the broader Nifty50 was ruling at 9,833, up 64 points.
BSE Midcap, Smallcap index beat Sensex in H1FY18
Shares of midcap and smallcap companies fared better as compared to its large-cap peers in first half (April to September) of the current financial year 2017-18 (FY19). The S&P BSE Smallcap index rallied 12%, while S&P BSE Midcap index surged 10% as compared to 6% rise in the benchmark S&P BSE Sensex till 12:29 PM. READ MORE
Avoid lumpsum bets, stay with SIP, say fund managers
The five per cent fall in share market prices over the past fortnight is not enough reason to make big lumpsum investments, say mutual fund (MF) managers. One should continue through the Systematic Investment Plan (SIP) route, as it is impossible to time the market, they add. Most fund managers have a cautious stand, as the earlier sharp rally this year, without earnings support, has made valuations expensive. Stocks continue to remain expensive even after the latest correction, they add. READ FULL ANALYSIS HERE
Ashok Leyland Limited (ALL) hit a new high of Rs 121, up 3% on BSE, surpassing its previous high of Rs 120 touched in last of week, after the rating agency ICRA assigns credit rating for commercial paper issue with stable outlook. READ MORE
RBI likely to hold rates on October 4 policy: Morgan Stanley
With the weak GDP growth in the Jun-17 quarter, the debate on providing stimulus to the economy reemerged. However, the prospects of a rate cut had been dampened by the August CPI inflation print of 3.4%, which surprised on the upside. READ FULL REPORT
11:33 AM Broader markets outperform
The BSE Midcap and the BSE Smallcap indices continued to outperform gaining over 1% each.
11:32 AM Markets check
At 11:30 am, S&P BSE Sensex was trading at 31,421, up 138.64 points, while the broader Nifty50 was ruling at 9,815, up 46 points.
Little headroom for PSUs to invest
The government’s move to take the public sector route to kick-start the capex cycle in the economy may not yield the desired results, analysts say. That’s because of the poor finances of non-oil PSUs and excess capacity in most of the sectors where these firms operate. READ FULL REPORT
10:47 AM Buzzing stock
GAIL India rallied 8% to Rs 428 on BSE in early morning trade after media reports suggested that the Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed consultation on integrated authorization for unified/pooled tariff for all connected pipelines of the company. READ FULL REPORT
India the worst major market in September
India is likely to earn the worst-performing major market tag for September. So far this month, the benchmark BSE Sensex is down nearly four per cent in dollar terms. In comparison, the MSCI EM index, a gauge for the performance of emerging market (EM) equities, has lost about one per cent during the month. CLICK HERE FOR FULL REPORT
Shreyas Shipping & Logistics rallied over 3% to Rs 447 on BSE after the company said it has signed a memorandum of association for acquiring one multipurpose vessel and one container vessel.
NSE adds Bajaj Finance, HPCL, UPL in Nifty 50 index from today
Lovable Lingerie surged 14% to Rs 256 on BSE in the early morning trade after the company said its board will meet on Friday, October 6, 2017 to consider the proposal for buyback of equity shares. READ MORE
Markets see largest one-day FII pull-out
Foreign investors on Thursday offloaded shares worth Rs 5,328 crore — the largest in a single session — but the markets managed to end with gains, thanks to support from domestic institutions.
Provisional data from stock exchanges showed foreign institutional investors (FIIs) extended their selling streak for a ninth straight day. Foreign funds pulled out Rs 9,900 crore during the period. READ MORE
9:35 AM Nifty Realty leading sectoral gainer
9:28 AM Sensex heatmap at open
Broader markets outperform
The BSE Midcap and the BSE Smallcap indices outperformed to gain 0.7% each.
9:21 AM Markets at open
At 9:20 am, S&P BSE Sensex was trading at 31,377, up 94 points, while the broader Nifty50 was ruling at 9,806, up 37 points.
Buy South Indian Bank October 27.5 call
CMP: Rs 1.70
Stop loss: Rs 1.
Target: Rs 3.50
Lot size: 33141
Stocks in news:
NTPC, Sun Pharma, SBI, Bank of Baroda, Reliance Industries, GAIL, DLF, Idea Cellular
Nifty above 9,800 at pre-open
At 9:05 am, the S&P BSE Sensex was trading at 31,351, up 69 points, while the broader Nifty50 was ruling at 9,822, up 53 points.
Nifty Outlook by Motilal Oswal Securities
Nifty index managed to hold near its previous swing low support of 9,685 and rebounded towards 9,789 mark. It formed a Hammer candle on the daily chart and closed positive after the seventh consecutive negative sessions. Now if it manages to hold above 9,750-9,777 zones then short term reversal could be seen for an up move towards 9,880 and 9,928 zones while below 9685 fresh weakness could intensify for the further declines.
Technical calls by Chandan Taparia
Last Close: Rs 267
Stop Loss: Rs 259
Target: Rs 285
Nifty outlook by Prabhudas Lilladher
Market has been corrective from 10,178 levels which is around 5% , we may see some bounce from here, but checking the daily charts the ADX is likely to rise with MDI crossover PDI indicating a break of 9,700 would accelerate the fall to lower levels. To think otherwise, we will have to wait for indicators to show signs of reversal. The support for the day is seen at 9,720 while resistance for the day is seen at 9,810.
FIRSTSOURCE SOLUTIONS: BUY
CMP: Rs 41.75
TARGET: Rs 46
STOP LOSS: Rs 39.50
Wall Street on Thursday
US stocks rose on Wednesday as gains in financial shares were powered by growing expectations for a December interest rate hike and on hopes President Donald Trump’s administration may be making progress on a tax plan.
The Dow Jones Industrial Average rose 56.39 points, or 0.25% to 22,340.71, the S&P 500 gained 10.2 points, or 0.41% to 2,507.04 and the Nasdaq Composite added 73.10 points, or 1.15% to 6,453.26.
8:52 AM Asian markets
Asian shares tried to regain some poise on Friday after a tough week in which the gathering risk of a US rate rise lifted Treasury yields towards nine-year highs and boosted borrowing costs across the region.
Activity seemed mainly confined to book-squaring for the end of the month and quarter, and moves in markets were modest at best.
MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1%, but was still down a sizable 2.1% for the week so far. Japan's Nikkei was off 0.1% though South Korea managed to recoup 0.4% of gains.
8:50 AM Singapore Nifty
At 9:45 am, SGX Nifty was trading at 9,809, up 14 points or 0.15%.
8:50 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Fri, September 29 2017. 15:31 IST