F&O expiry: Sensex slips 218 pts; consumer durables crack, YES Bank down 9%

Among sectoral indices, the Nifty Bank index settled 1.3 per cent lower due to a fall in the shares of YES Bank, which cracked 9 per cent to end at Rs 203.60.

3:44 PM

Nifty Bank index falls 1.3%

3:39 PM

Sectoral losers on NSE

3:37 PM

BSE Sensex: YES Bank top loser of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 36,324, down 218 points while the broader Nifty50 index settled at 10,978, down 76 points.

3:16 PM

Indian realty market to become third largest, touch $1 tn by 2030: Survey

Indian real estate market is expected to touch $1 trillion by 2030, becoming the third largest globally, a recent survey said.

 

According to the survey conducted by KPMG in association withe Naredco and APREA revealed that the sector is estimated to grow to $650 billion by 2025 and surpass $850 billion by 2028 to touch $1 trillion by 2030. READ MORE

2:59 PM

Govt, RBI make coordinated policy moves to fight rupee drop, cash crunch

India upped the ante in its efforts to restore investor confidence, with the central bank taking measures to ease liquidity for lenders a day after the government raised import tariffs to support the battered rupee.

 

The Reserve Bank of India allowed banks to dip further into statutory liquidity reserves to help them meet their liquidity coverage ratio needs, a step that would boost cash available for lending. On Wednesday, the government raised import taxes on $12 billion of goods as it seeks to narrow the current-account deficit from a five-year high. READ MORE

2:45 PM

MARKET COMMENT Madhavi Arora, Economist, FX & Rates, Edelweiss Securities

Markets have been reacting to possible RBI action to defend the currency via the interest rate route and to reckon higher imported inflation pressures ahead amid higher oil prices and INR depreciation.. Of course, recent stress in NBFC space has suddenly led to sharp uptick in money market rates in the last one week, leading to tighter financial conditions in the money market space. However, the sovereign papers have been largely insulted and have been more a function of INR and crude movement. We think RBI will likely follow suit of the EM peers and will likely raise policy rates by 25bps in the upcoming October policy

2:34 PM

BSE Smallcap index hits 52-week low; down 13% in September

The S&P BSE Smallcap index hit a 52-week low of 15,017, down 1.5% on Thursday in intra-day trade on the back of sharp fall in financials, real estate, constructions, infrastructures, sugar and aviation sector stocks. The index has fallen below its previous low of 15,025 touched on Tuesday, September 25, 2018.
 

Indiabulls Real Estate, Sadbhav Engineering, Can Fin Homes, JM Financial, Srei Infrastructure Finance, Thangamayil Jewellery, Jet Airways (India), Dhampur Sugar Mills and Avadh Sugar & Energy have fallen more than 5% on the BSE. READ MORE

2:16 PM

Soymeal traders see exports surging 70% on Chinese demand, weak rupee

India's soymeal exports in 2018/19 could jump as much as 70 per cent from a year ago, buoyed by expected purchases from the world's biggest soybean buyer China, industry officials told Reuters on Thursday.

 

A depreciation in the rupee and a jump in soybean output will help India gain market share in China, which is looking for new suppliers after imposing tariffs on key US farm commodities as part of a Sino-US trade row, they said. READ MORE

2:00 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,333.21	-209.06	-0.57
S&P BSE SENSEX 50	11,477.04	-65.95	-0.57
S&P BSE SENSEX Next 50	32,426.27	-368.06	-1.12
S&P BSE 100	11,223.18	-73.79	-0.65
S&P BSE Bharat 22 Index	3,499.27	-23.73	-0.67

(Source: BSE)

1:51 PM

Garden Reach Shipbuilders extends IPO closure by 3 days, revises price band

 

The IPO received weak response from investors with only 67 per cent of the shares on offer being subscribed on the closing day on Wednesday. READ MORE

1:38 PM

IPO WATCH

Aavas Financiers issue subscribed 43% so far on Day 3

1:32 PM

Nifty Bank index down over 1%. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
YES BANK	210.00	223.75	-13.75	-6.15	48022986
IDFC BANK	37.30	38.25	-0.95	-2.48	9409258
AXIS BANK	602.45	617.45	-15.00	-2.43	5093874
BANK OF BARODA	106.85	109.15	-2.30	-2.11	9983827
ICICI BANK	306.75	313.10	-6.35	-2.03	10050014

1:17 PM

5 subsidiaries wiped out all FY18 profits of IL&FS, its 200-odd other arms

A power company, a maritime infrastructure company, a metro rail project, a tunnel and a border checkpost in Madhya Pradesh wiped out more capital for beleaguered infrastructure player IL&FS than all its other activities put together.

Subsidiaries involved in these projects had a collective loss of Rs 13.2 billion for the financial year ending March 2018 or 70 per cent of the consolidated loss for IL&FS of Rs 18.9 billion. READ MORE

1:00 PM

NBFC stocks fall; Edelweiss,GIC Housing, Reliance Capital hit 52-week lows

Shares of non-banking financial companies (NBFC) including housing finance companies (HFCs) continued to be under pressure with most of these stocks trading at their 52-week lows on concerns of rising funding costs, which will affect net interest margins (NIMs) and growth. Edelweiss Financial Services, Srei Infrastructure Finance, Can Fin Homes and Reliance Capital were down 5% to 14% on the BSE. READ MORE

12:46 PM

Mahindra looking for foreign partner to grow mutual fund business

Mahindra Mutual Fund has begun scouting for a foreign partner to ramp up operations and improve fund management capabilities, said people in the know. Mahindra MF, which began operations in July 2016, is currently a bit-player and placed 31 among 42 fund houses, with assets under management of about Rs 40 billion. It has three equity schemes with assets of Rs 10.5 billion and aims to make inroads in regions where Mahindra Finance and its subsidiaries are active in. READ MORE

12:33 PM

FPIs pull out Rs 196 billion in September; quantum of MF flows slows

Foreign portfolio investors (FPIs) have pulled out a combined Rs 196 billion from Indian debt and equity markets so far in September on concerns of widening current account deficit on the back of rising oil prices and sliding rupee and global trade wars.

 

According to the latest official data from NSDL, FPIs have withdrawn a net Rs 107.46 billion from the equity market and Rs 88.78 billion from debt between September 3 to September 26, taking the total amount withdrawn to Rs 196.24 billion ($2.7 billion), data show. READ MORE

12:16 PM

Multiple negatives derail stock price of PNB Housing; more downsides ahead

The PNB Housing stock slid 5 per cent on Wednesday to Rs 1,006 apiece. Including the last week, the fall has been a sharp 24 per cent. Despite the correction, experts believe there could be more downsides, citing three factors.

 

They are the potential increase in cost of funds after the IL&FS turmoil, potential asset-liability mismatch (ALM), and the proposed stake sale by PNB Housing’s promoters — Punjab National Bank and Carlyle group. PNB Housing meets 35 per cent of its funding needs through non-convertible debentures — mostly short-term instruments. READ MORE

12:05 PM

Prabhudas Lilladher on YES Bank

We downgrade Yes Bank to ACCUMULATE (from BUY) with target price of Rs250 based on 1.8x FY20ABV (from 2.7x multiple). Yes bank’s outcome of board meeting has left several loose ends and prolongs uncertainty regarding the succession.

It has recommended 1) establishment of committee to search & select a new MD & CEO and 2) request to RBI an extension for the MD &CEO up to April’19 at least to review the FY19 audited results and a further extension upto Sept’19 (till AGM) to oversee transition 3) appointed Mr. Rajat Monga & Mr. Praloy Mandal as EDs as a part of a long term succession planning. 

However, the board has not been able to give a clear picture on the succession and further course for the bank. The timelines and uncertainty on approvals from RBI for both MD & CEO (should be difficult) and EDs will keep near term stock performance muted.

12:02 PM

HDFC Securities recommends ICICI Securities

ICICI Securities (ISEC) is one of the strongest retail investing platforms for direct equities (9.2% vol. market share). The company has retained its market leadership position despite intense competition. ISEC has also built a strong financial products distribution business (26.2% of revenues). We believe that ISEC will be a key beneficiary as financialization of savings grows. We initiate with a BUY rating and target price of Rs 352

12:01 PM

Sector watch: Agrochemicals

Crop sowing (+0.2% YoY) and monsoon (7% below normal) trends are satisfactory, though there has been deficit rainfall in few subdivisions. Channel placement growth of 13% has been robust for fertiliser industry and players are eyeing high and quick liquidation to claim subsidy in the new DBT regime. Rainfall has been satisfactory in August and will give fillip to agrochemical sales.

Normal monsoon in September is equally important for increase in agricultural output given mixed spatial distribution so far. Further boost in pesticide sales will be a function of monsoon activity over the coming few weeks. We have positive outlook on the agrochemical industry on the back of expectation of normal monsoon & remunerative crop prices (higher MSP), low channel inventory before commencement of placement and increasing ability of the industry to pass on the increase in raw material price

12:00 PM

Markets at noon

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	36483.98	36542.27	-58.29	-0.16
	14668.99	14745.99	-77.00	-0.52
	15135.25	15341.48	-206.23	-1.34
	15077.69	15239.54	-161.85	-1.06
	4262.01	4275.26	-13.25	-0.31

11:59 AM

Sector watch: Oil marketing companies

We see near-term upside to crude prices given a tightening global oil market amid (1) expected reduction in oil exports from Iran due to the US sanctions, (2) persisting decline in Venezuelan production and (3) slowdown of growth in the US liquids production due to mid-stream bottlenecks. We reiterate our positive stance on GAIL and ONGC, both being beneficiaries of elevated crude prices (and a weaker rupee), while maintain our cautious stance on OMCs, which are adversely impacted

(Source: Kotak Securities)

11:58 AM

BofAML on import tariff hike

The nominal import tariff hike buttresses our view that duty hikes are unlikely to be effective in supporting INR. Note the inflation impact is negligible with impacted items accounting for 1% of CPI. Although media reports had talked of possible tariff hikes on gold, electronics and steel, today's imposition was limited to just US$10-15bn of imports (2.8% of total).

The 10% hike was restricted to air condition-ers, refridgerators and washing machines (totalling US$1.8bn of imports). We do not also see 2.5-5% increases in import duties materially curtailing import demand for precious stones and jewelry. To the extent some of these are re-exported, the impact on the current account deficit is even more limited. Finally, while a 5% tariff was introduced on some aviation turbine fuels has, imports are small. On balance, we have not made any changes to our BoP forecasts

11:41 AM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
INDBULL.REALEST.	102.65	-10.25	-9.08	532350
SREI INFRA. FIN.	36.55	-3.45	-8.63	238865
EDELWEISS.FIN.	197.20	-14.90	-7.02	279626
INDIABULLS HOUS.	932.95	-64.60	-6.48	204326
CAN FIN HOMES	232.80	-16.05	-6.45	68647

11:30 AM

The 'tsunami of negatives' to sink $2.8 billion India-Bond support

Prime Minister Narendra Modi’s government appears set to trim its borrowings for the second time this year. Even so, the prospect of smaller debt sales is doing little to lift the pall over the battered Indian bond market. It’s not hard to see why, with headlines bringing in a barrage of bad news, from rising oil prices and a tumbling rupee to the debt crisis at a lender and a cash crunch in the banking system. The relief may be temporary, traders say. READ MORE

11:20 AM

Poor execution, weak results weigh on listed entities of IL&FS group

Listed entities of the IL&FS Group continue to see their share prices under pressure after its parent defaulted and their ratings were downgraded. The group’s borrowing is over Rs 900 billion, with reported losses during 2017-18 more than Rs 20 billion.

 

IL&FS runs its business through numerous subsidiaries. Analysts at Nomura say analysis of the larger subsidiaries indicate its financial position remains stressed, leading to the rating downgrades. READ MORE

11:10 AM

Rupee @75-plus: Turbulence ahead

With the US Federal Reserve raising rates, and the oil prices rising above $80 barrel after the recent OPEC meeting, there will be further pressure on the Rupee. That the rupee overshot by reaching Rs 72-73 to the USD, as some have argued, is wishful thinking.

 

The rupee had been stuck at around Rs 64-65 to the USD for almost three-plus years after recovering from a drop to Rs 70 during the taper tantrum in August 2013. READ MORE

10:59 AM

Havells, Voltas slip on custom duty hike; here's how analysts see the move

Shares of select consumer durable companies fell in trade on Thursday, after the government raised import duties on 19 essential items, including referigerators, air conditioners, and jet fuel.

 

Voltas was trading nearly 3.5 per cent lower at Rs 552.50 apiece on the BSE. The stock slipped nearly 7 per cent in the opening deals to hit a low of Rs 533.50. Havells India was trading at Rs 636 per share, nearly 2 per cent down. READ MORE

10:45 AM

RBI monetary policy preview: Expect a rate hike despite bond turmoil

Even as the bond market is going through some turmoil, the Reserve Bank would still continue with its rate-hiking cycle, say economists. At least a 25 basis points hike can be expected on the October 5 policy, economists said. READ MORE