MARKET WRAP: Indices rise for 2nd day, Sensex up 185 pts; auto stocks rally

All that happened in the markets today

4:20 PM

MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

"After initially trading with uncertainty, the markets gained strength, in sync with positive global cues. European and Asian markets gained from encouraging economic data which could be assumed as an indicator of economic recovery in most of the major economies. Encouraging US, Chinese, and European manufacturing data and also the expectation that the US would bring in additional stimulus kept up the buoyancy in the markets. Domestically, investors chose to ignore the border tensions with China which led to the volatility in the opening trades. With markets reacting to stock-specific news and with heightened volatility, Investors are advised to remain alert, trade cautiously, and keep booking profits".

3:44 PM

SECTOR WATCH:: Nifty Media jumps nearly 3.5%

3:42 PM

MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex gained 185 points or 0.48 per cent to settle at 39,086 levels while NSE's Nifty ended at 11,535, up up 65 points, or 0.56 per cent. 

3:23 PM

MARKET CHECK:: Top 5 gainers on the BSE at this hour

3:10 PM

Escorts hits all-time high after recording best-ever August tractor sales

Shares of Escorts zoomed 10 per cent to its fresh all-time high of Rs 1,221 on the BSE on Wednesday. It has rallied 12 per cent in the past two trading days after the company’s Agri Machinery Segment (EAM) reported an 80 per cent year-on-year growth in tractor sales at 7,268 units in the month of August. The stock surpassed its previous high of Rs 1,211, touched on July 22, 2020. READ MORE

3:05 PM

Why Premjis, Ambanis and Nadars beat professionally run companies

Family-owned companies, the Credit Suisse findings suggest, tend to be more profitable. Since 2006, revenue growth generated by such companies has been over 200 bps higher than that of non-family-owned companies for both smaller and larger companies. That apart, they, on average, tend to have slightly better ESG scores than non-family-owned companies. READ MORE

2:52 PM

Interest Waiver Case | Sibal, representing an association of the construction companies, to SC

>> Says, as on before the pandemic in March, 57% of the insolvency cases resulted in insolvency.

>> The August 6 circular makes only some accounts eligible to be given benefit of the resolution plan.

>> The resolution plan has to be approved by 70% of the lenders. The accounts need to continue to remain "standard" for this benefit.

>> Our submission is we want the extension of the moratorium

>> In this context I want a complete waiver of interest, no question of interest on interest, we want a complete waiver of interest. 

2:52 PM

Top gainers on BSE at this hour

COMPANY	PRICE(rs)	CHG(%)
ADANI GREEN	546.00	9.99
ADANI GAS	193.05	8.88
INDIAMART INTER.	4167.45	8.81
UNITED BREWERIES	1090.65	8.48
VODAFONE IDEA	9.62	8.21

2:42 PM

Interest Waiver Case | Kapil Sibal presents arguments on the behalf of one of the petitioners

>> The recommendations of the NDMA were sought for the first time on August 28.

>> Decisions under section 13 in the context of the NDM Act will have an overriding effect. That is the extent of the power of the NDMA and what we see here is the absolute absence of exercise of this power.

>> The decisions (under August 6 circular) have been left completely on the Banks and this is arbitrary

2:38 PM

JK Tyre, CEAT: How to trade auto ancillary stocks post August sales nos

Amara Raja Batteries Limited (AMARAJABAT): With the “higher high, higher low” formation on the daily chart, this counter is gradually rising with the support of 50-day moving average (DMA) currently placed at Rs 710 levels. As it manages to sustain above the significant moving average, one can view a positive crossover of 100-DMA and 200-DMA in the process. If this crossover succeeds, then an upside towards recent high of Rs 769 may be expected. READ MORE  

2:35 PM

NEWS ALERT :: Jubilant FoodWorks to shut 105 loss-incurring Domino's outlets

>> Says, Operating environment continues to be uncertain

>> Take-away services back to normal levels in August

>> Revenue recovery in July, August encouraging

2:30 PM

NEWS ALERT :: NCC wins six new orders worth Rs 1,548 cr in August

>> Out of this, one order of Rs. 959 crore pertains to Water Division and second order of Rs. 262 crorc pertains to Building Division and balance four orders of Rs. 327 crore pertain to Electrical Division.

>> These orders are received from state government agencies and do not include any internal orders.

2:25 PM

Jubilant FoodWorks recovers post Q1 nos

>> Reports net loss of Rs 74 cr vs expectations of around Rs 100 cr loss

>> Same-store-sales growth at -61.4% Vs -3.4% (QoQ) and 4.1% YoY

2:13 PM

Bajaj Auto dips over 3% after reporting 9% YoY fall in August sales

Shares of Bajaj Auto dipped 3.8 per cent to Rs 2,845 on the BSE on Wednesday after the company reported a 9 per cent fall in its total vehicle sales at 3,56,199 units in August.The Pune-based automaker had sold a total of 390,206 vehicles in August 2019. Total domestic sales in August stood at 1,85,879 units as compared to 2,08,109 units in the same month of 2019, a drop of 11 per cent, Bajaj Auto said in a regulatory filing. READ MORE

2:11 PM

Rupee Closing

Rupee ends lower at 73.04 per US dollar vs Tuesday's clsoe of 72.86/$

2:01 PM

HSBC values Info Edge's stake in Zomato at $1.1 billion; stock jumps 5%

"Among all the potential positive triggers for the IE’s share, Zomato is the most critical. While other companies such as Naukri and Policybazaar are great assets for IE, Zomato can significantly impact it’s valuation in the coming years," the report said. It said this is an increase of $2.4 billion or 45 per cent of Info Edge's market cap. In that scenario, Zomato could be valued at $15 billion. READ MORE

1:50 PM

Adani Group shares rally; Adani Green, Adani Gas, Adani Ent gain over 6%

Shares of Gautam Adani-led Adani Group companies were in focus with Adani Green Energy, Adani Gas and Adani Enterprises rallying up to 10 per cent on the BSE on Wednesday in the afternoon deal in an otherwise range-bound market. Adani Ports and Special Economic Zone (SEZ), Adani Power, and Adani Transmission were up in the range of 1 per cent to 3 per cent. In comparison, the S&P BSE Sensex was down 0.09 per cent at 38,865 points at 01:28 pm. READ MORE

1:43 PM

SECTOR WATCH:: Nifty Media jumps nearly 3.5%

1:39 PM

BROKERAGE VIEW:: ICICI Securities on JM Financial

RATING: BUY | TARGET PRICE: Rs 114

Weak real estate sentiment and delayed resolution of distressed credit may weigh on earnings in the immediate term (flat in FY21E), partially offset by sustained momentum in IWS (Investment banking, Wealth management & Securities) business. Valuing operating businesses separately, we arrive at an SoTP-based target price of Rs114. Initiate coverage with BUY.

1:37 PM

BROKERAGE VIEW:: LKP Securities on ICICI Bank

RATING: BUY | TARGET PRICE: Rs 461

Considering the recent capital raise, we expect its loan book to fatten cautiously at CAGR of 10% over FY21-23E, led by balanced growth across segments. In our opinion, the bank’s asset quality may witness some hiccups and estimate return ratio ROA/ROE of 0.9% and 8.7% for FY22E. Moreover, the bank’s contingent provisioning (2.1% of loan book) is one of the highest in the industry. We value the standalone entity with 1.7xFY22E Adj. BVPS (Rs 200) and of investment in

subsidiaries and JVs (Rs 121 per share); we arrive at a target price of Rs 461. We recommend BUY rating with a potential upside of 18%.

1:32 PM

BROKERAGE VIEW:: Nirmal Bang Securities on Minda Corporation

RATING: BUY | TARGET PRICE: Rs 103

MCL has a diversified product base and strong clientele. The management has taken bold steps to improve profitability by getting rid of the loss making German business, undertaking cost rationalisation measures and improving business mix with focus on high yield products. We expect MCL’s top line to grow at 1.5x the automobile industry led by (i) organic and inorganic expansion, (ii) strong relationships with OEMs, (iii) opportunities in sensors, ABS and wiring harness on the back of BS6 implementation and (iv) focus on exports. At CMP, MCL is trading at a PE of 13.0x FY22E EPS. We maintain ‘Buy’ on the stock with a target of Rs 103 (at 18x FY22E).

1:28 PM

BROKERAGE VIEW:: Edelweiss Securities on Tata Motors

The new management team has done a commendable job of getting the house in order with redrawn strategies. However, the benefits in terms of sharp improvement in RoE/FCF will be subject to volumes revival/success of new products. While Evoque helped JLR in FY20, FY21-23 should benefit from Defender/RR/RRS. We maintain ‘BUY/SO’ with SOTP-based TP of Rs 182. At CMP the stock trades at FY22 PE of 6.2x.

1:25 PM

BROKERAGE VIEW:: ICICI Securities on Telecom sector

We expect the industry, as a whole, to utilise their management bandwidth to expand profitability and cash generation. Airtel, with comfortable leverage, superior customer quality, and consistent KPI is our top pick. We maintain BUY on Airtel with an unchanged target price of Rs 700/share. We also maintain SELL on VIL with an unchanged target price of Rs 6/share, given the difficult path ahead to assure the survival and lack of clarity on the same. We also downgrade Bharti Infratel to REDUCE (from HOLD earlier) with a target price of Rs 80/share. The key risk for Infratel is on tenancy growth concerns and possibly in the worst case, Vodafone Idea’s survival (as it is an anchor tenant).

1:22 PM

European indices make a mixed start

1:06 PM

Jubilant FoodWorks trades weak ahead of Q1 nos

1:00 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

12:59 PM

Siemens' decision on sale of mechanical drives business attracts criticism

Siemens last week announced its plan to sell the mechanical drives (MD) business to a subsidiary of the parent firm. The decision has attracted criticism from both analysts and proxy advisory firms. “Siemens India short-changing minority shareholders again. READ MORE

12:50 PM

NEWS ALERT :: Govt to soon float cabinet note seeking to monetise assets of Power Grid, GAIL

>> Expect asset monetisation of GAIL, Power Grid to yield around Rs 20,000 cr

(Source: NewsRise)

12:50 PM

BUZZING STOCK:: United Breweries up 8%