Market rundown by Vinod Nair, Head of Research of Geojit Financial Services
Fall in rupee on account of FEDs plan to unwind balance sheet and a rate hike by the end of the year impacted the market sentiment. However, market gradually recovered from low as liquidity was driven to export oriented sectors like IT & Pharma to take the benefit of the dollar and of regulatory approvals.
3:48 PM Sectoral Trend
3:42 PM Nifty PSU Bank index fell over 1% post the Fed announced possibility of one more hike before the end of this year. All constituents were trading in red in the index.
3:38 PM Nifty Pharma gained over 3%, hitting 7-week high with all constituents ending in green for the day
3:36 PM Top gainers and losers on BSE Sensex
3:34 PM Broader Markets
The broader markets underperformed the frontline indices with BSE midcap and BSE Smallcap down 0.3% and 0.5% respectively
3:33 PM Markets at close
Benchmark indices pared some of the morning losses to end flat after pharma stocks rallied on positive corporate announcements. The Nifty Pharma index rose over 3% hitting 7-week high on Thursday.
The S&P BSE Sensex ended the day at 32,370, down 30 points while the broader Nifty50 index settled at 10,121, down 19 points
Bhagiradha Chemicals zooms 41% in two days on fund raising plan
Bhagiradha Chemicals & Industries was locked in upper circuit for the second straight session, up 20% at Rs 291 on BSE ahead of its board meeting on Friday, September 22, to consider fund raising plan.
“A meeting of the board of directors of the company will be held on September 22, 2017 to consider and approve, raising of funds by way of issue of convertible warrants and equity shares on preferential basis,” Bhagiradha Chemicals & Industries said in a BSE filing.
Zydus Pharma recalls 44,800 bottles of antidepressant in US
Cadila Healthcare's US arm, Zydus Pharmaceuticals USA Inc, is recalling 44,800 bottles of antidepressant Paroxetine tablets from the American market, the US health regulator said in a report.
In its latest Enforcement Report, United States Food and Drug Administration (USFDA) has said Zydus Pharmaceuticals USA Inc is recalling the Paroxetine tablets in the strength of 30 mg, manufactured by Cadila Healthcare Ltd.
The reason for the recall is the presence of foreign tablets. "Risperidone tablets were found in the bottle of paroxetine tablets", the report said.
3:09 PM Market Check
The benchmark indices pared all losses to turn flat in the last leg of the trade, lifted by pharma stocks. At 3:08 pm, the S&P BSE Sensex was trading at 32,374, up 26 points while the broader Nifty50 index was ruling at 10,122, down 18 points.
Orchid Pharma up over 15%
Orchid Pharma gained over 15% after it received the Establishment Inspection Report (EIR) from USFDA on the successful inspection of the Active Pharmaceutical Ingredients (API) manufacturing facility located at SIDCO Industrial Estate, Aalthur, Kanchipuram District, Tamil Nadu, India.
2:44 PM Europe Check
European markets opened slightly higher, after the Federal Reserve announced a plan to begin unwinding its balance sheet and signaled one more interest rate hike for this year.
The pan-European Stoxx 600 edged up around 0.27% shortly after the opening bell, with almost all sectors and major bourses in positive territory.
2:31 PM The Nifty PSU bank index fell 1% heading for a fourth session of fall in five, on profit-booking
ITI soared 19% to Rs 121, also its 52-week high on BSE, after the company announced that it has been declared as the lowest (L1) bidder for the contract value of Rs 7,000 crore.
“The company has been declared as L1 in the “ASCON Phase IV Project” by Ministry of Defence. The contract value of the project is approximately Rs 7,000 crore,” ITI said in a BSE filing.
READ FULL REPORT HERE
Note ban, GST pull business confidence of CFOs to 1.5-yr low in Q3: Survey
Amid subdued demand after goods and services (GST) implementation and demonetisation woes, the business confidence in India’s chief financial officers (CFOs) touch one-and-a-half-year low in the July-September period, reveals a survey.
The Composite CFO Optimism Index for Q3FY17 declined by 11% year-on-year and by 5.7% on a quarter-on-quarter basis, says Dun & Bradstreet Composite Optimism Index for Q1 2017.
Only 41 per cent of the CFOs expressed optimism about liquidity position of their companies — the lowest since Q2 (April-June) 2014. READ MORE
Tata Steel's new start with ThyssenKrupp JV: Deal decoded
Even while concerns regarding loss of jobs and opposition from politicians in Berlin continue, German steelmaker ThyssenKrupp and Tata Steel have agreed to form an equal joint venture that would create Europe’s second-largest steel firm, after ArcelorMittal.
The new entity — ThyssenKrupp Tata Steel — would be headquartered in Amsterdam, the Netherlands. The entity would have 21.3-million tonne (mt) capacity, sales of about €15 billion and a workforce of about 48,000 at 34 locations. The merger is, however, likely to lead to 4,000 people losing their jobs both on the production side and administration side. READ MORE
1:35 PM Rupee Check: Rupee hits 12-week low as dollar strengthens post Fed policy
Equity report from Prabhudas Lilladher:
Tata Steel - BUY
CMP: Rs 688
Target Price: Rs 750
Tata Steel (TATA) and ThyssenKrupp AG signed a MoU to form a 50:50 Joint Venture (JV) for merger of flat steel operations of both the entities in Europe and the steel mill services of the ThyssenKrupp Group. JV would make combined entity the second largest steel producer in Europe with production of 22 MT and market share at 14% (based on production).
We believe that the JV is structurally positive for TATA as its debt (based on 50% economic interest) exposure for European operations would come down by ~30% to 3.25 bn euros from the current 4.7 bn euros with higher EBITDA base of 783 mn euros, 12% above the current EBITDA.
The JV would help the company to strengthen its focus on India. Management guided to double the capacity of Indian operations to 26MT in the next five years.
Electric vehicles may have a limited visibility on the Indian roads at the moment. But the government focus and push on electric vehicles (EVs) has led to a sharp rally in stock prices of small-cap companies with an exposure to EVs. Share price of two companies which are into electric buses- JBM Auto and Goldstone Infratech- have more than doubled since April this year. The government had first talked about its intent of making India a hundred per cent electric vehicle nation by 2030 in March this year. READ FULL ANALYSIS
Pharma stocks hog limelight
Shares of pharmaceutical companies continued trading higher for the second straight session, with Nifty Pharma index hitting seven-week high on Thursday, on positive corporate announcements from Divi’s Laboratories and Dr Reddy’s Laboratories.
Besides these two pharmaceutical stocks, Glenmark Pharmaceuticals, Lupin, Cadila Healthcare, Cipla and Sun Pharmaceutical Industries were trading higher in the range of 2% to 4% on the National Stock Exchange (NSE). READ FULL REPORT
12:34 PM Broader markets
The BSE Midcap and the BSE Smallcap indices underperformed to lose 0.4 and 0.7%, respectively.
12:32 PM Markets check
At 12:30 pm, the S&P BSE Sensex was trading at 32,284, down 116 points, while the broader Nifty50 was ruling at 10,094, down 46 points.
YES Bank hits new high
Yes Bank hit a new high of Rs 383, up 2% on BSE after the stock turned ex-stock split in the ratio of 1:5 with effect from today. READ MORE
11:34 AM Buzzing stock
ITDC jumped over 14% to Rs 658 after the Centre on Wednesday decided to exit three India Tourism Development Corporation (ITDC) hotels, including Jaipur Ashok, and hand them over to the state governments concerned. READ FULL REPORT
Interview of the day
With the US Federal Reserve (US Fed) deciding to wind down its $4.2 trillion balance-sheet starting October, US-based ROBERT F BAUR, chief global economist, Principal Global Investors that has around $431 billion worth of assets under management believes that global equity markets can continue to move up in tandem as long as the (corporate) profit growth is strong, economic growth is robust and interest rates don't get too high. CLICK HERE FOR FULL INTERVIEW
ROBERT F. BAUR, chief global economist, Principal Global Investors
Matrimony.com makes a quiet debut
Matrimony.com, the first pure-play Indian matchmaking website, has made a quite debut, listed at par against its initial public offer (IPO) price of Rs 985 per share on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). READ MORE
10:39 AM Dr Reddy's hogs limelight
Dr Reddy’s Laboratories moved higher by nearly 7% to Rs 2,466 after the company received an Establishment Inspection Report (EIR) from the US Food and Drug Administration (US-FDA), for its formulation facility at Srikakulam plant (SEZ) Unit II, Andhra Pradesh. CLICK HERE FOR FULL REPORT
10:25 AM Nifty dips below 10,100
Equity MFs stick to their top picks
The chase for a few major stocks among India’s equity mutual fund (MF) managers has intensified this year. They are largely sticking to select stocks in their most-owned list as the markets trade at an all-time high, with higher valuations making several market participants uncomfortable. READ MORE
Novartis India surged 7% to Rs 697 on BSE in early morning trade after the pharmaceuticals company said that the board will meet on Monday, September 25, 2017 to consider a proposal for buyback of the company's equity shares. READ MORE
9:46 AM Nifty Pharma index leading sectoral gainer
Pharma stocks rallied with Divi's Labs and Dr Reddy's contributing most to the gains.
Key takeaways from US Fed policy
Fed Chair Janet Yellen said that the central bank was ready to change the interest rate outlook if needed. CLICK HERE FOR FULL STORY
9:31 AM Sectoral trend
The BSE Midcap and the BSE Smallcap indices added 0.2% and 0.3%, respectively.
9:26 AM Sensex heatmap at open
9:20 AM Markets at open
At 9:19 am, the S&P BSE Sensex was trading at 32,441, up 41 points, while the broader Nifty50 was ruling at 10,153, up 12 points.
Stocks in news
Reliance Industries, Union Bank, ONGC, YES Bank, Mahindra & Mahindra
Nifty outlook by Angel Broking
In last couple of days, the Nifty has managed to respect the upward gap area of 10,131-10,115. Hence, we continue to see 10115 as an immediate support level followed by 10,043. On the other hand, we may see an attempt to march towards yet another landmark of 10,200. But, our interest remains in stock specific moves as trading opportunities are much superior to the index and therefore, we continue advising the same.
Technical calls by Prabhudas Lilladher
KARNATKA BANK - BUY
CMP: Rs 154.80
TARGET: Rs 170
STOP LOSS: Rs 145
Buy and sell ideas from Sacchitanand Uttekar of Tradebulls
BUY: Tata Power
CMP: Rs 84.60
Stop Loss: Rs 80.30
Target: Rs 98
Nifty outlook by Tradebulls Securities
Very much on the expected lines the index has continued its run so far. The current week started on a strong note as the Nifty registered fresh life high but the trading range has been capitulated as the index traded in a narrow range for last 3 trading sessions. A series of ‘Inside Bar’ formation coupled with the RSI yet to register an overbought state indicates that the rally still has some steam left. We expect the index to register fresh high near 10,260-10,350 during the current series.
US Fed keeps rates steady
The US Federal Reserve left interest rates unchanged on Wednesday but signaled it still expects one more increase by the end of the year despite recent weak inflation readings. FULL TEXT OF US FED MEETING
8:51 AM Asian markets
The US dollar shone while Asian shares slipped slightly on Thursday after the US Federal Reserve announced a plan to start shrinking its balance sheet and signalled one more rate hike later this year.
MSCI's broadest dollar-denominated index of Asia-Pacific shares outside Japan was down 0.4%. South Korea's Kospi was down 0.1% while Australia shed 0.6%. Japan's Nikkei gained 0.8% thanks to the yen's fall against the dollar.
8:50 AM Wall Street update
The S&P 500 and the Dow ended slightly higher on Wednesday, adding to their string of closing records after Fed policy decisions. The Dow Jones Industrial Average rose 41.79 points, or 0.19% to end at 22,412.59, its seventh straight record close. The S&P 500 gained 1.59 points, or 0.06% to 2,508.24, clocking its sixth record closing high in the last seven sessions. The Nasdaq Composite dropped 5.28 points, or 0.08% to 6,456.04, with Apple Inc as its biggest drag.
At 8:45 am, SGX Nifty was trading at 10,147, down 20 points or 0.20%.
8:48 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Thu, September 21 2017. 15:31 IST