MARKET WRAP: Sensex dips 110 pts ahead of F&O expiry; FMCG, IT stocks fall

Among sectoral indices, the Nifty FMCG index fell 1.5 per cent led by a fall in ITC and Hindustan Unilever. The Nifty IT index, on the other hand, settled 1.9 per cent lower weighed by Infosys.

4:05 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking Ltd.

In a volatile trading session, the equity benchmark indices opened on a positive note however, it witnessed selling pressure at higher levels with Nifty index correcting from an intraday high of 11,146 levels to close at 11,054 levels, 0.1% lower. The broader markets outperformed the benchmark with BSE Midcap and Smallcap ending with marginal gains of 0.2% and 0.1%. The sector indices witnessed mixed trend. While FMCG, IT and Auto were the top losers, Metal, Realty and Capital Goods ended with gains of ~1.2-1.7%.

 

We maintain our cautious stance on the Indian markets as volatility is likely to remain high in the near term. On the global front, US FOMC meet scheduled tonight, crude oil and currency movement would be actively tracked by the investors. We would advise investors and traders to remain selective in stock picking.

3:46 PM

Nifty FMCG index ends 1.47% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
ITC	293.10	301.15	-8.05	-2.67	19889764
P & G HYGIENE	9500.00	9673.75	-173.75	-1.80	8025
BRITANNIA INDS.	5680.00	5773.85	-93.85	-1.63	190471
HIND. UNILEVER	1610.00	1630.85	-20.85	-1.28	980614
GODREJ CONSUMER	772.60	782.40	-9.80	-1.25	775681

3:41 PM

Sectoral gainers and losers on NSE

3:39 PM

BSE Sensex: Tata Motors, SBI, ITC among top losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 36,542, down 110 points while the broader Nifty50 index settled at 11,054, down 14 points.

3:18 PM

TD Power Systems surges 31% in four days on share buyback plan

Shares of TD Power Systems have moved higher by 13% to Rs 145 per share, extending their 16.5% rally in past three days on the BSE ahead of the board meeting later in the day to consider a share buyback proposal. READ MORE

3:04 PM

Half of the 22 listed PSBs are unfit to absorb weaker state-owned banks

Last week, the Central Government announced the merger of three public sector banks — Bank of Baroda, Dena Bank and Vijaya Bank — setting off speculation that similar mergers of public sector banks may be around the corner.

 

But given the deteriorating financial health of most public sector banks (PSBs), the fundamental question is whether there are any healthy PSBs left that can absorb the weaker ones. READ MORE

2:55 PM

Most active stocks in terms of value on BSE

COMPANY NAME	LATEST	HIGH	LOW	CHG ( )	CHG(%)	VALUE (  CR)	VOLUME
DEWAN HSG. FIN.	307.60	319.90	277.45	6.90	2.29	157.05	5105782
APOLLO HOSPITALS	1041.50	1060.65	1033.35	-5.15	-0.49	148.20	1422906
YES BANK	222.75	229.55	217.00	2.90	1.32	76.55	3436568
EICHER MOTORS	25180.00	26254.35	25076.40	-433.65	-1.69	75.10	29827
TATA MOTORS	233.25	244.00	229.80	-7.65	-3.18	70.42	3019132

2:49 PM

Sadbhav Engineering, PNB Housing, Motherson Sumi, 8K Miles hit 52-week low

 

8K Miles Software Services locked in lower circuit for the third straight day, down 5% at Rs 213 on the BSE, despite clarification to social media rumors. The stock slipped 35% thus far in the month of September. READ MORE

2:29 PM

Ultra-rich families ride stock surge to double their annual gains: Report

These are heady times for the world’s richest clans. Family offices scored average returns of 15.5 per cent last year, up from 7 per cent in 2016 and 0.3 per cent the prior year, according to UBS Group AG and Campden Wealth. Those in Asia led the way with a 16.4 per cent return in 2017, fuelled by soaring stock markets and private equity. READ MORE

2:15 PM

United Breweries Ltd spurts 0.9%, up for five straight sessions

The stock is quoting at Rs 1397.55, up 0.9% on the day on the NSE. United Breweries Ltd is up 69.56% in last one year as compared to a 13.32% gain in NIFTY and a 20.98% gain in the Nifty FMCG. United Breweries Ltd rose for a fifth straight session today. READ MORE

2:01 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,456.42	-195.64	-0.53
S&P BSE SENSEX 50	11,519.76	-46.13	-0.40
S&P BSE SENSEX Next 50	32,747.59	+148.12	+0.45
S&P BSE 100	11,275.22	-30.77	-0.27
S&P BSE Bharat 22 Index	3,513.63	-19.43	-0.55

(Source: BSE)

1:46 PM

Hindustan Zinc well placed on rising volumes, supply situation

Though the broader markets have been under pressure, Hindustan Zinc continues to gain and has bounced back 13.8 per cent from its July lows. While trade war concerns have led to volatility in base metal prices, what offers comfort is the outlook for zinc given the supply shortages.

 

Further, while it posted softer volumes in the June quarter, there has been a recovery and analysts expect a better second half. READ MORE

1:36 PM

Cabinet okays Rs 4,500-cr package to sugar industry

The government Wednesday approved a Rs 4,500 crore package for the sugar industry that includes over two-fold jump in production assistance to cane growers and transport subsidy to mills for export up to 5 million tonnes in the marketing year 2018-19, sources said.

 

The Cabinet Committee on Economic Affairs (CCEA) approved the food ministry's proposal that seeks to address the surplus domestic stock of sugar and help mills in clearing huge cane arrears of around Rs 13,000 crore. READ MORE

1:25 PM

NEWS ALERT Cabinet approves national digital communication policy (telecom policy)

Telecom stocks in green:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
M T N L	14.85	14.10	0.75	5.32
REL. COMM.	11.80	11.55	0.25	2.16
VODAFONE IDEA	41.25	40.50	0.75	1.85
NETTLINX	72.50	71.25	1.25	1.75
TEJAS NETWORKS	272.40	268.25	4.15	1.55

1:16 PM

NEWS ALERT Cabinet approves package for sugar industry

Sugar stocks react:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
THIRU AROOR. SU.	31.55	29.55	2.00	6.77
GAYATRI SUGARS	4.63	4.41	0.22	4.99
RIGA SUGAR	8.09	7.71	0.38	4.93
KCP SUGAR &INDS.	24.70	23.55	1.15	4.88
UGAR SUGAR WORKS	16.13	15.47	0.66	4.27

1:07 PM

TOP TAKEAWAYS All you wanted to know about the Aadhar judgement Click here for more

1:05 PM

MID-CAP INDEX OUTPERFORMS Top gainers in the mid-cap segment

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	WEIGHT IN INDEX (%)
GODREJ PROPERT.	599.55	25.10	4.37	3987.18	0.47
HONEYWELL AUTO	21718.40	776.40	3.71	4799.77	0.56
OBEROI REALTY	419.05	11.90	2.92	4875.73	0.58
M & M FIN. SERV.	427.60	12.10	2.91	12943.35	1.53
IIFL HOLDINGS	569.50	15.95	2.88	12900.63	1.53
GLENMARK PHARMA.	652.85	17.00	2.67	9764.42	1.16

1:03 PM

TOP LOSERS IN TRADE TODAY

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
KPIT TECH.	247.35	-19.40	-7.27	737172
SADBHAV ENGG.	231.25	-17.95	-7.20	10520
BOMBAY DYEING	186.20	-9.80	-5.00	6191
8K MILES	213.00	-11.20	-5.00	2777
INDIABULLS VENT.	594.55	-31.25	-4.99	9005

1:01 PM

Prabhudas Lilladher on Aavas Financiers IPO

High capital adequacy (61%) will not only depress RoE in near term (current RoE at 11%) but elevated valuations would require high growth to improve ratios and justify valuations. Market conditions are challenging with high interest rates, bond yields volatility and anemic property market. Although technological driven processes (data analytics for onboarding customers, risk management, collection framework), regional expansion and stepping-up leverage signal bettering operational efficiencies in long term, valuations leave little scope for a negative surprise. AVOID.

1:00 PM

Edelweiss on JSW Energy

We met JSW Energy (JSWE) JMD & CEO Mr. Prashant Jain to size up the evolving landscape in the power sector and the company’s new business initiatives.

Key takeaways: 1) JSWE is likely to benefit from consolidation in the thermal power sector given its balance sheet (BS) strength. 2) Higher merchant prices due to favourable power demand-supply dynamics and rising fuel cost would force discoms to sign PPAs. 3) Management is long-term optimistic (but sees near-term pain) on renewables owing to the shift towards cleaner energy and expects tariffs to settle within INR3.25–4.0 in the medium term. 4) Management is confident of a successful foray into the electric vehicle (EV) business given opportunity size, structural shift in mobility and potential commercial parity over the next five years.

We like JSWE’s strong balance sheet, which can spur growth once demand revives. Our cautious stance stems from its expansion into a relatively unrelated space. Maintain ‘HOLD/SP’.

1:00 PM

Sharekhan on Marico

We expect FY2019 and FY2020 earnings estimates to grow by 3.7% and 2.5%, respectively. The gradual improvement in domestic volume growth and correction in copra prices would aid Marico to achieve strong earnings growth (22% CAGR) over the next two years. Marico is currently trading at 35x its FY2020 earnings, which is at a discount to some of the large FMCG stocks.

Moreover, rupee depreciation against USD will have less impact on Marico’s earnings as the company has natural hedge with foreign currency earnings being higher than expenses. Thus, stable valuations and correcting copra prices make Marico as one of our top picks in the FMCG space. We maintain our Buy recommendation on the stock with an upgraded price target (PT) of Rs. 385 (in-line with increased earnings estimates).

12:58 PM

FOMC preview

Post European market close will see the outcome of the FOMC’s latest policy meeting. This will include a press conference from Powell and a fresh summary of economic projections (the latter of which of course includes the dot plot).

It is expected that the Fed will announce a 25bp hike to the target range for the Fed Funds Rate (FFR). Despite the fact that the effective FFR is now trading only 7bp below the upper band of its target range (which means that it is 2bp below the IOER rate), it is still expected the IOER will be increased by the full 25bp (rather than, for example, only increasing it by 20bp).

(Source: Rabobank International report)

12:47 PM

KEI Industries gets revision in credit ratings

KEI Industries announced that CARE Ratings (CARE) has upgraded the rating assigned to Long Term Bank Facilities availed by the Company from CARE A-; Outlook: Positive Single A Minus] to CARE A; Stable [Single A; Outlook Stable]. Further, CARE has upgraded the rating assigned to Short Term Bank Facilities availed by the Company from CARE A2+ [A Two Plus] to CARE A1 [A One]. READ MORE

12:29 PM

Anand Rathi Wealth Services files Rs 4.25-bn IPO papers with Sebi

Financial services firm Anand Rathi Wealth Services has filed draft papers with markets regulator Sebi to raise an estimated Rs 4.25 billion through an initial public offering (IPO).

 

The IPO comprises fresh issue of equity shares by Anand Rathi Wealth Services aggregating up to Rs 1.25 billion and an offer for sale of up to Rs 3 billion by the promoter Anand Rathi Financial Services, according to the draft red herring prospectus (DRHP) filed with Sebi. READ HERE

12:15 PM

US-China trade war dims Asia's 2019 growth outlook says Asian Development Bank

Developing Asia could grow more slowly than previously thought next year as the US-China trade war inflicts damage on the region's export-reliant economies, the Asian Development Bank (ADB) said on Wednesday.

 

Tightening global liquidity could also weigh on business activity by pushing up borrowing costs, while capital outflows are also a risk. READ MORE

12:03 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,456.34	-195.72	-0.53
S&P BSE SENSEX 50	11,515.74	-50.15	-0.43
S&P BSE SENSEX Next 50	32,521.40	-78.07	-0.24
S&P BSE 100	11,260.15	-45.84	-0.41
S&P BSE Bharat 22 Index	3,509.37	-23.69	-0.67

(Source: BSE)

11:52 AM

After IL&FS crisis, suspicion running deep in bond dealers' minds

Public sector North Eastern Electric Power Corp Ltd (NEEPCO) on Monday called for bids to raise Rs 3 billion in seven-year bonds through the electronic bidding platform. It received bids worth Rs 135 million, asking for a coupon of 9.25 per cent. Last week, government-owned Rural Electrification Corp (REC) wanted to raise three-year 13-day bonds worth Rs 5 billion with a greenshoe option of another Rs 20 billion. READ MORE

11:40 AM

NEWS ALERT SC upholds constitutional validity of Aadhaar

11:31 AM

Why the IL&FS crisis is spooking debt and equity markets in India

What is the genesis of the crisis at IL&FS? Focused on capital expenditure (capex) rich sectors, Infrastructure Leasing & Financial Services (IL&FS) has used the debt route to raise substantial capital in the past. The current problems started in August when IL&FS defaulted on Rs 4.5 billion worth of inter-corporate deposits (ICDs) to the Small Industries Development Bank of India (SIDBI). READ MORE