MARKET WRAP: Sensex slips 73 pts amid selling in pvt banks, auto stocks

All that happened in markets today.

3:38 PM

Nifty snapshot :: Mid, small-caps outperform

India VIX up over 4%

3:37 PM

Sensex heat map

Banks, autos among top losers today

3:36 PM

Index watch

3:35 PM

CLOSING BELL

The S&P BSE Sensex lost 73 points or 0.18 per cent to settle at 40,284 while NSE's Nifty50 index ended at 11,894, down 1 point or 0.01 per cent.

3:21 PM

Govt looks to ease norms to attract global coal miners, industry sceptical

India plans to float global tenders for the first time for coal mining blocks before end-2019, sources familiar with the matter told Reuters in August, a move that could end Coal India Ltd's near-monopoly on the fuel. READ MORE  

3:04 PM

MARKET CHECK

3:01 PM

SpiceJet in talks with Boeing to buy more 737 Max planes: Ajay Singh

Indian low-cost carrier SpiceJet Ltd. is in talks with Boeing Co. to buy more 737 Max aircraft to feed its expansion plans, a deal that could mark a Dubai Airshow coup for the grounded narrow-body.
 

A sales lull for the Max, idled globally since March, allows SpiceJet to acquire planes at a lower cost, Chairman Ajay Singh said in an interview with Bloomberg TV at the biennial event. He said the carrier is looking to set up a new hub in the Middle East and expand to eastern Europe. READ MORE

2:50 PM

BROKERAGE RADAR | LKP Securities on ICICI Bank

Loans are estimated to grow by 16.8% CAGR over FY20-22e led by both retail and corporate advances. Retail loans, which currently form 60% of the advances, are expected to grow at CAGR of 21% over FY20-22e led by home loans, unsecured loans like PL and credit cards. In corporate sector, incremental demand is coming from refinancing, public sector companies, road sector and gas distribution side while there is no fresh capacity being generated. However, the bank is witnessing utilization rates going up in power and cement sector, hence there could be possibility of capex coming there.

We value the bank at Rs 598 with BUY rating, assigning multiple of 2.6x FY21e ABV of the bank and valuing the subsidiaries at Rs 138 post 15% holdco discount. Currently, the bank is trading at 2x FY21e ABV on standalone basis. We expect re-rating of the bank to continue in coming quarters as well.

2:40 PM

BUZZING STOCK | Hind Rectifiers surges 13%

2:31 PM

Rupee check

Photo: Bloomberg

2:29 PM

S&P revises Tata Steel UK's outlook to stable, 'B+' Rating Affirmed

Standard & Poor’s has revised its outlook on Tata Steel UK Holdings (TSUKH) from “positive” to “stable” in line with parent Tata Steel.

 

The outlook revision reflects view that Tata Steel will deleverage slower than earlier expectations as the outlook for steel prices weakened materially over the last three quarters. READ MORE

2:19 PM

Broader indices outperform

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	11882.10	11895.45	-13.35	-0.11
	9664.55	9667.30	-2.75	-0.03
	16882.70	16803.85	78.85	0.47
	5692.25	5675.25	17.00	0.30
	16.00	15.03	0.97	6.45

2:15 PM

Anand Rathi Resrach on AIA Engineering

With de-stocking in the mining sector, AIA's revenue declined 6 per cent y/y. As inventories at its plant were high, production was curtailed, by 18 per cent y/y to 59,078 tons. With lower ferro-chrome prices, FY20 and FY21 margins are likely to expand. Concerns about the Vale mines continue. Factoring in the short-term uncertainties in the industry and the lower management guidance, we reduce our multiple from 30x to 28x. However with customers added and greater profitability, we retain our Buy, with a target of Rs 1,995 (28x FY21e earnings).

2:04 PM

India Inc Q2 profit at 15-yr low on record telco losses, net sales dip 0.8%

India’s listed companies, excluding financials and oil and gas, reported a combined net loss for the first time in at least 15 years, while their net sales contracted for the first time in four years in the July-September quarter (second quarter, or Q2). While the bottom line slipped into the red due to record losses posted by mobile operators during the quarter, the decline in sales is attributed to demand contraction in the domestic economy. READ MORE

2:04 PM

Tata Steel extends gain after S&P revises UK holdings' outlook to 'stable'

1:43 PM

Index Contributors at this hour

1:32 PM

Pokarna tanks 20% after USDOC hikes preliminary CVD for subsidiary

PESL, wholly-owned subsidiary of Pokarna, is India’s largest exporter of natural quartz surface to the US. The major part of Pokarna's revenue comes from the US markets and quartz contributes nearly 68 per cent to the company's overall revenue.

 

Pokarna, in a regulatory filing, said it strongly disagreed with USDOC’s amended preliminary CVD determination. "The magnitude of this amended preliminary CVD duty is unfounded, absurd and divorced from reality...We continue to have full confidence that USDOC will conduct its investigation in fair and fact-based manner and we are confident that this unfounded preliminary CVD will be corrected and reversed in the final determination”, it said. READ MORE

1:13 PM

NEWS ALERT | Divestment proposal of BPCL, CONCOR, 2 other CPSEs could be taken up in next cabinet meet: sources to CNBC TV18

-- SCI, NEEPCO, THDC could receive cabinet approval for stake sale

-- EoI for BPCL, individual firms likely by Dec-end

-- Appointment of intermediaries within 10 days of cabinet nod

1:10 PM

Stocks that hit 52-week low on S&P BSE Sensex

COMPANY	PRICE(rs)	52 WK LOW	CHG(rs)	CHG(%)
BAJAJ ELECTRICAL	317.90	312.00	-8.45	-2.59
C P C L	140.80	139.35	0.60	0.43
GAYATRI PROJECTS	89.00	88.60	-8.95	-9.14
JAGRAN PRAKASHAN	49.25	48.50	-2.70	-5.20
MAGMA FINCORP	39.50	38.50	-1.80	-4.36

1:00 PM

PSB Q2 review: NII, net profit improve; experts see higher slippages ahead

Asset quality in Q2FY20 was broadly stable sequentially, analysts at Kotak Securities said in a note, as there were no major resolutions in the corporate segment. Slippages, however, continued to be on the higher side. Excluding State Bank of India (SBI), aggregate slippages for the rest of the banks were higher by around 40 bps sequentially at 4.3 per cent owing to slippages in multiple large corporate accounts. READ MORE

1:00 PM

BUZZING STOCK:: Wockhardt

12:53 PM

NEWS ALERT | Tata Motors gets order for 500 electric vehicles from Lithium Urban: CNBC TV18

12:44 PM

BUZZING STOCK:: Just Dial zooms 6%

12:39 PM

Parag Milk Foods surges over 14% as promoter increases holding

Shares of Parag Milk Foods climbed 14 per cent to Rs 145 on the BSE on Monday after its promoter acquired additional 0.24 per cent stake in the company through open market. The stock of packaged foods company hit an all-time low of Rs 125 in early morning deal today. On Friday, the company's promoter, Devendra Shah, had acquired 200,000 equity shares, representing 0.24 per cent stake in the company, through open market. READ MORE

12:38 PM

NEWS ALERT | Received certain representations with regard to BPCL disinvestment: Oil Minister

-- Ministry has not finalised BPCL disinvestment plan: Oil Minister

12:34 PM

NEWS ALERT | Govt plans to meet fiscal deficit target of 3.3%: FM in Lok Sabha

12:29 PM

BROKERAGE RADAR | Edelweiss Securities on Ashoka Buildcon

While improving working capital cycle is a positive, low revenue visibility and declining traffic in BOT projects are a cause for concern. Incremental order wins are critical to sustain revenue growth. We have cut FY20E EPS 4% and trimmed multiple to 11x considering concerns on the road awarding front. We maintain ‘BUY’ with revised SOTP-based target price of Rs 162— Rs 99/share from the EPC business and balance from BOT projects (DCF valuation)—as we roll forward to March 2021E.

12:21 PM

Morgan Stanley pegs 2020 global growth at 3.2%; EMs to outperform

After cutting their growth projections for global growth (real GDP) to a six-year low of 2.9 per cent by 2019-end in July 2019, analysts at Morgan Stanley now see a marginal recovery and expect 2019 to end with a 3 per cent growth. They, however, see retained the projection for 2020 at 3.2 per cent and expect the growth to pick up pace next year. As a result, their projection for global growth for 2021e stands at 3.5 per cent. READ MORE

12:12 PM

Contribution to Sensex's fall today

12:01 PM

MARKET CHECK: Sensex dips over 100 pts