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Sensex, Nifty end higher for fourth straight session; Infosys gains 3%

Catch all that happened in the market here

SI Reporter  |  New Delhi 

markets

Benchmark indices ended higher on Monday, gaining for a fourth consecutive session of gains with settling above 9,900, as index heavyweight surged on the first day of trading since the appointment of co-founder as chairman on hopes that the move would help defuse a months-long row between the founders and the board.

shares ended 3% higher after earlier rising as much as 4.6% on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of Chief Executive Vishal Sikka, who waged an acrimonious battle with the founders for months over alleged corporate governance lapses.

Globally, European shares fell in a broad sell-off as the euro strengthened after ECB chief Mario Draghi did not express concern about a strong currency in a closely watched speech.

4:03 PM

Analyst View
 
Jayant Manglik, President, Retail Distribution at Religare Securities: Nifty gained over half a percent today amid volatility. It opened with an uptick and remained range bound thereafter due to lack of follow-up buying. The prevailing dullness in our markets can be attributed to the recently concluded earnings season, which failed to cheer the participants at large. And now, the anxiety of derivatives expiry has taken over. 
 
Things would be clear by the end of this week. Meanwhile, focus on risk management aspect and keep a close on upcoming data viz. GDP, auto sales for further cues. 

3:47 PM Infosys top gainer

Infosys shares ended 3% higher after earlier rising as much as 4.6% on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of Chief Executive Vishal Sikka, who waged an acrimonious battle with the founders for months over alleged corporate governance lapses.

Infosys

3:45 PM Sectoral index chart

PSU Bank was the only index that ended in red on NSE. 

Nifty
Source: NSE

3:42 PM IT stocks led the gains. The Nifty IT index rose as much as 1.3%, gaining for a fourth straight session. It ended 0.8% higher.

Nifty
Source: NSE

3:39 PM Top gainers and losers on BSE Sensex

Source: BSE



3:34 PM Broader Markets

Broader makrets outperformed benchmark indices with BSE Midcap and BSE Smallcap rising over 1% each

3:33 PM

Markets at close

Benchmark indices ended higher on Monday, gaining for a fourth consecutive session of gains, as index heavyweight Infosys surged on the first day of trading since the appointment of co-founder Nandan Nilekani as chairman on hopes that the move would help defuse a months-long row between the founders and the board.
 
The S&P BSE Sensex ended at 31,751, up 155 points while the broader Nifty50 index was ruling at 9,912, up 55 points.

3:30 PM India Inc on record fundraising spree; Rs 62,000-crore IPOs filed with Sebi READ THE STORY HERE

3:24 PM BUZZING STOCK

Dr Reddy's Laboratories fell over 2% after it said that a law firm representing an investor filed a class action lawsuit in New Jersey against the company, its CEO and CFO.

medicine, drug, antibiotic, doctor, pharmaceuticals

3:16 PM DLF extends fall

Realty major DLF fell nearly 5% despite the audit committee approved the deal between the company and GIC for stake sale in rental arm DLF Cyber City Developers.

Realty

3:08 PM

Oil Check

Oil markets were roiled on Monday after Hurricane Harvey wreaked havoc along the US Gulf coast over the weekend, knocking out numerous refineries and some crude production.
 
Gasoline prices hit two-year highs as massive floods caused by the storm forced refineries across the US Gulf Coast to shut down.
 
In crude markets, Brent futures were pushed up by pipeline blockades in Libya, but US crude futures eased as the US refinery shutdowns could reduce demand for American crude.

3:07 PM Europe Check

European shares fell on Monday in a broad sell-off as the euro strengthened after ECB chief Mario Draghi did not express concern about a strong currency in a closely watched speech.
 
While London was closed for a holiday, reducing activity, the broad STOXX index for euro zone stocks fell as much as 0.7% to a two-week low.

2:56 PM Broader Markets

Broader makrets outperformed benchmark indices with BSE Midcap and BSE Smallcap rising 0.8% and 1% respectively

2:48 PM Market Check

Benchmark indices continued to hold the morning gains led mainly by gaind in index heavyweight Infosys after Nandan Nilekani returned to take stock of teh situation in the company.

At 2:47 pm, the S&P BSE Sensex was trading at 31,769, up 173 points while the broader Nifty50 index was ruling at 9,911, up 54 points.

2:31 PM Nestle India touched a one-month high after it reassured investors that it would focus on driving volume growth through new product launches, and Credit Suisse upgraded it to "outperform". 

The Nestle logo is pictured on the company headquarters entrance building in Vevey, Switzerland

2:16 PM

India's GDP growth seen picking up to 6.6%: Reuters poll
 
India's economic growth likely accelerated to 6.6% in the quarter just ended, but analysts polled by Reuters are sounding increasingly worried that confusion over a new goods and services tax will dampen activity in coming months.
 
The forecast, from a survey of over 40 economists taken over the past week, compares with growth of 6.1% in the first three months of the year, the slowest pace in two years. The range of forecasts was wide from 5.7% to 7.2%.

GDP

1:57 PM

Adani Enterprises surges

Adani Enterprises gained over 9% after the company announced that it plans to begin work in October to build the controversial Carmichael coal project in Australia, aiming to make its first shipment in March 2020.
 
The project has been delayed for years by court challenges from green groups and indigenous groups concerned about climate change, and the impact on native land and water supply, but those challenges have been rejected.

Coal

1:40 PM BUZZING STOCK

Kiri Industries rose 3% to Rs 302.95 on BSE after consolidated net profit rose 26.9% to Rs 103.68 crore on 6.8% decrease in net sales to Rs 272.64 crore in Q1 June 2017 over Q1 June 2016.

1:19 PM

PSB consolidation move in India is credit positive: Moody's
 
Rating agency Moody's on Monday said the government’s decision to form a panel to consider and oversee mergers amongst public sector banks is credit positive as consolidation would provide scale efficiencies and improve corporate governance.
 
Last Wednesday, the Union Cabinet decided to form a ministerial panel led by Finance Minister Arun Jaitley to consider and oversee mergers among the country’s 21 public-sector banks.
 
However, such mergers would not improve the banks’ weak capitalisation due to lack of fresh capital infusions from the government, Moody’s said in a statement. READ MORE

PSU, banks, merger

1:02 PM Buzzing stock

Gillette India fell over 2% to Rs 5,200 on BSE after the company's net profit fell 20.4% to Rs 37.67 crore on 14.7% decline in net sales to Rs 407.60 crore in Q4 June 2017 over Q4 June 2016.

Gillette


12:40 PM

Environmental 'troubles' for delay in PSU IPO
 
After the success of Cochin Shipyard, the Centre is planning to take another big state-owned shipbuilder Mazgaon Dock Shipbuilders public. The proposal, however, has run into rough weather with the Union environment ministry. Investment banking sources say the initial public offering (IPO) may get pushed to the next financial year due to the delay in the environment ministry’s nod. READ MORE

12:21 PM

Buzzing stock

Bharat Bijlee slumped over 7% to Rs 1,127 on BSE after the company reported net loss of Rs 3.87 crore in Q1 June 2017, compared with net loss of Rs 2.15 crore in Q1 June 2016.
 
The result was announced after market hours on Thursday, 24 Aug 2017. READ FULL REPORT HERE

12:00 PM

GDP growth seen picking up to 6.6% in June quarter
 
Country’s economic growth likely accelerated to 6.6% in the quarter just ended, but analysts polled by Reuters are sounding increasingly worried that confusion over a new goods and services tax (GST) will dampen activity in coming months.
 
The forecast, from a survey of over 40 economists taken over the past week, compares with growth of 6.1% in the first three months of the year, the slowest pace in two years. The range of forecasts was wide from 5.7% to 7.2%.

Statsguru: The year gone by

11:24 AM

Buzzing stock

Emco rallied over 10% to Rs 18.75 on news reports that an Asia-focused special situations investment firm SSG Capital Management may acquire a stake in the company.
 
Meanwhile, BSE has sought clarification from Emco with reference to news in www.livemint.com quoting "SSG Capital Management in talks to buy stake in Emco Ltd".

Emco

11:04 AM

Markets check
 
At 11:00 am, the Sensex was trading at 31,762, up 166 points, while the broader Nifty50 was ruling at 9,911, up 54 points. 

10:50 AM

IPOs a big hit for investors so far this year
 
Two of three IPOs that have hit markets this year have made money for the investors. At Thursday’s closing price, 10 of the 15 companies that launched IPOs this year are trading above their issue price. READ MORE  

L&T Fin, group to raise ~15,000 cr for IPO finance

10:39 AM

The worst is over for firm, say brokerages
 
After Nandan Nilekani's return in Infosys, brokerages have revised their price target for the stock and suggest that the worst may be over for the company as regards corporate governance issues are concerned. Infosys, they feel, can now get back to focussing on tackling business-related issues. READ FULL REPORT HERE 

10:24 AM Buzzing stock

Realty major DLF wiped off all its morning gains to slip in red after the company on Sunday said it has entered into a joint venture (JV) with GIC to build rental assets in India. CLICK HERE FOR MORE

DLF

10:08 AM

India Inc on record fundraising spree
 
India Inc is embarking on a record fundraising spree, bolstered by a sustained rally in the stock market and the flood of money sloshing around with domestic and overseas institutional investors.  More than 150 companies have expressed their intent to raise capital amounting to an estimated Rs 2.5 lakh crore by way of initial public offerings (IPOs), qualified institutional placements (QIPs), and follow-on public offerings. READ FULL REPORT HERE 

9:50 AM

Reimagining Infosys
 
He may have joined Infosys at 26 and rejoined at 62, but Nandan Nilekani clearly hasn’t lost any of his old traits: Combative (some questions from the media on Friday were dismissed with disdain); clear-headed and diplomatic (over the weekend, he has already given the world enough idea about his course of action without giving away anything specific); confident (he has repeatedly asserted that he will take all the critical decisions and wants everybody to leave him alone); consensus-builder (he has talked about using his skills as a unifier) and loyal (he has described NR Narayana Murthy as the father of corporate governance in India and got the board to issue an apology letter of sorts to Mr Murthy). READ FULL EDITORIAL HERE 

Nandan Nilekani
Illustration: Ajay Mohanty

9:44 AM Sectoral trend

All sectoral indices on the NSE were trading in green. 

Sectoral
Source: NSE

9:35 AM Sensex heatmap at open

heatmap
Source: BSE


9:29 AM

Broader markets
 
Broader markets mirror gains in the frontline indices. The BSE Midcap and the BSE Smallcap indices add 0.5% each. 

9:26 AM

Infosys top gainer
 
The Street has taken the appointment of Nandan Nilekani as Infosys’ new non-executive chairman positively. The stock gained over 4% to Rs 953 in early trade. It was the top gainer on Sensex, Nifty and Nifty IT index. 

Infosys

9:20 AM Markets at open

At 9:19 am, the Sensex was trading at 31,756, up 160 points, while the broader Nifty50 was ruling at 9,907, up 50 points. 

9:15 AM Stocks in news

Infosys, Tata Motors, banking stocks, Reliance Industries, Inox Wind, DLF etc

9:14 AM

Nifty outlook by Angel Broking 
 
We expect the Nifty to slide towards the daily '89-EMA' level of 9,640-9,620 and even below that in the coming weeks; whereas, in the upward direction, crossing the 10,000 mark would be a daunting task in the near term. Traders are advised not to get carried away by this bounce back; as such moves in a consolidation phase can be deceptive at times. 
 
At this juncture, a prudent strategy would be to keep tracking above mentioned levels and following a stock centric approach.

9:13 AM

MOTILAL OSWAL RESEARCH ON NESTLE
 
Opportunities in the Indian packaged food space are massive, and while Nestle has proven itself inept for nearly a decade at utilising this opportunity, there is some evidence now that the company could get things right now, though the path would still be challenging. 
 
As we roll forward to September 2019, the downside is also limited to 7% at the derived target price of Rs 6,160. We maintain our target P/E at 25% discount to the 3-year average P/E multiple

Nestle, which internationally has over 2,000 brands, is betting on its pharma business to reduce dependence on Maggi in India
Nestle, which internationally has over 2,000 brands, is betting on its pharma business to reduce dependence on Maggi in India

9:12 AM

Commodity Picks
 
Refined soy oil is trading at Rs 659 a 10 kg in the Indore market. For the week ahead, prices are expected to head toward Rs 650 a 10 kg. Slow down in domestic demand, amid profit-booking after recent gains, may weigh on prices. READ MORE 

9:10 AM

Technical calls
 
Buy Aurobindo Pharma with a target of Rs 780, says Prabhudas Lilladher. CLICK HERE FOR MORE

9:10 AM MARKET WATCH

The outlook is a slow start as investors are back after an extended weekend. Infosys shareholders may cheer the return of former CEO Nandan Nilekani as non-executive chairman of the company. Despite North Korea firing three ballistic missiles over the weekend, US says it will negotiate to reduce nuclear tensions on Korean peninsula: Amar Ambani, head research, IIFL

9:08 AM

BARCLAYS ON GLOBAL ECONOMY & CURRENCIES
 
Following speeches on Friday by ECB President Mario Draghi and Federal Reserve Chair Janet Yellen at the 2017 Jackson Hole Economic Symposium, investors will turn their attention to inflation prints from the eurozone and United States this week. Although the data are expected to show weak inflation in both economies, the United States leads the eurozone in its cyclical recovery, as noted by Draghi at Jackson Hole. 
 
As we approach the September ECB and Fed meetings, risks are skewed towards a change in narrative that favours the USD, particularly at the expense of the EUR. Until that shift in narrative occurs, however, markets’ focus on inflation as the primary driver of policy represents a risk to our short EURUSD view.

9:08 AM

Pre-open trade
 
The Nifty hit its crucial 9,900 mark in pre-open trade. At 9:05 am, the Sensex was trading at 31,752, up 156 points, while the Nifty was ruling at 9,904, up 47 points.

9:06 AM

GEOJIT FINANCIAL ON AUROBONDO PHARMA
 
The stock has taken support around Rs 705 and has broken above the trendline resistance of Rs 725 and is likely to move towards Rs 750 in the near term. Volume has crossed 10-day average and MACD has crossed the signal line and zero line from below favoring more upsides.

9:06 AM

Derivative strategy on Bank Nifty by MOSL
 
Call writing at 24500 could restrict its upside towards 24500-24600. CLICK HERE FOR DETAILS 

9:04 AM

Technical calls by Angel Broking 
 
We recommend buying Chennai Petroleum at current levels for a target of Rs 445 over the next 14-21 sessions. CLICK HERE FOR MORE TECHNICAL CALLS

9:04 AM

Technical check on the markets (Source: Anand Rathi Research)
 
The momentum indicators are still in sell mode on the daily as well as weekly charts, hence that is a negative sign for the bulls however the Nifty50 has reversed from the lower levels, so the probability of a sideways to positive bias is quite high. 
 
Once this bounce is over the next leg down is likely to begin which take the Index below the recent lows of 9685 levels. Now, on the upside 9950 is an immediate resistance and thereafter 10000 levels, whereas, on the lower side, 9830 and 9800 are crucial supports levels.

9:03 AM

Nifty outlook by Devang Shah
 
Short-term outlook for the market remains positive till Nifty trades above 9,685 levels and expecting target of 10,400 levels in the 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

9:02 AM

Derivative call
 
Derivative Strategy on Pidilite Industries by Devarsh Vakil & Nandish Shah - PCG Desk at HDFC Securities. CLICK HERE FOR DETAILS

8:54 AM Asian cues

Most Asian indexes came under pressure following Friday speeches from the top central bankers. Japan's Nikkei 225 dipped 0.13%. Across the Korean strait, the Kospi slid 0.41% as tech stocks weighed on the market.
 
Chinese markets bucked the trend. Hong Kong's Hang Seng Index rose 0.56%, the Shanghai Composite advanced 0.72% and the Shenzhen Composite added 0.82%.
 
Philippine markets are closed for a public holiday.

8:50 AM

Wall Street on Friday
 
US stocks rose slightly on Friday, lifted by high-dividend-paying stocks, after Federal Reserve Chair Janet Yellen stayed silent on monetary policy in a much-anticipated speech.
 
The Dow Jones Industrial Average rose 30.27 points, or 0.14% to end at 21,813.67, the S&P 500 gained 4.08 points, or 0.17% to 2,443.05 and the Nasdaq Composite dropped 5.68 points, or 0.09% to 6,265.64.

8:47 AM

Singapore Nifty
 
At 8:45 am, the SGX Nifty, Nifty futures being traded on Singapore Stock Exchange, was trading at 9,893, up 8 points or 0.18%. 

8:47 AM Good Morning!

Welcome to Business Standard's market liveblog. 

First Published: Mon, August 28 2017. 15:30 IST
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Sensex, Nifty end higher for fourth straight session; Infosys gains 3%

Catch all that happened in the market here

Catch all that happened in the market here
Benchmark indices ended higher on Monday, gaining for a fourth consecutive session of gains with settling above 9,900, as index heavyweight surged on the first day of trading since the appointment of co-founder as chairman on hopes that the move would help defuse a months-long row between the founders and the board.

shares ended 3% higher after earlier rising as much as 4.6% on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of Chief Executive Vishal Sikka, who waged an acrimonious battle with the founders for months over alleged corporate governance lapses.

Globally, European shares fell in a broad sell-off as the euro strengthened after ECB chief Mario Draghi did not express concern about a strong currency in a closely watched speech.

image
Business Standard
177 22

Sensex, Nifty end higher for fourth straight session; Infosys gains 3%

Catch all that happened in the market here

Benchmark indices ended higher on Monday, gaining for a fourth consecutive session of gains with settling above 9,900, as index heavyweight surged on the first day of trading since the appointment of co-founder as chairman on hopes that the move would help defuse a months-long row between the founders and the board.

shares ended 3% higher after earlier rising as much as 4.6% on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of Chief Executive Vishal Sikka, who waged an acrimonious battle with the founders for months over alleged corporate governance lapses.

Globally, European shares fell in a broad sell-off as the euro strengthened after ECB chief Mario Draghi did not express concern about a strong currency in a closely watched speech.

image
Business Standard
177 22