MARKET WRAP: Sell-off continues, Sensex loses 199 pts, Nifty ends at 11,313

All that happened in markets today

3:42 PM

IPO WATCH :: IRCTC

Demand data (Source: NSE website)

3:40 PM

Rate sensitives end mixed ahead of RBI policy on Friday

3:39 PM

Financials among top losers today

Index contribution

3:38 PM

Sensex heat map

YES Bank sees a massive jump in trade

3:37 PM

Index watch

Index	Current	Pt. Change	% Change
S&P BSE Bharat 22 Index	3,302.99	+10.92	+0.33
S&P BSE 100	11,418.39	-46.93	-0.41
S&P BSE SENSEX Next 50	30,482.41	-132.36	-0.43
S&P BSE SENSEX 50	11,820.19	-48.16	-0.41
S&P BSE SENSEX	38,106.87	-198.54	-0.52

3:36 PM

CLOSING BELL

The S&P BSE Sensex lost 199 points or 0.52 per cent to end at 38,106.87 levels while the NSE's Nifty50 index ended at 11,313.10, down 47 points or 0.41 per cent.

3:27 PM

Will the RBI cut repo rate tomorrow?

We continue to expect the RBI MPC to follow RBI Governor Shaktikanta Das into another 'out-of-the-box' 35bp repo rate cut on October 4. This should send a strong signal for bank lending rate cuts with the 'busy' industrial season round the corner.

(Source: BofAML report)

3:25 PM

Anand Rathi Securities on Amber Enterprises

We initiate coverage on the stock with a Buy recommendation and a target price of `1,248, based on a sum-of-parts calculation, which values the standalone business and each of its subsidiaries separately. Synergies of the standalone business and its subsidiaries, along with Sidwal, could together result in the RoCE expanding from 14% to 18% over FY19-21. Risk: Lower volumes in the domestic room-AC segment

3:25 PM

Elara Capital on OMCs

We revise our stance to positive on OMC from negative. We prefer HPCL among OMC, as its earnings are most exposed to marketing. We recommend Accumulate on BPCL and raise our target price to Rs 507. We revise our rating for HPCL to Buy from Accumulate and raise our target price to Rs 415. We revise our rating for IOCL to Buy from Accumulate and raise our target price to rs 182. We value refining at 5.5x (unchanged), petchem at 5.5x (unchanged), marketing at 4.2-4.5x (from 4.0-4.4x) FY21E EBITDA and retail MS & HSD gross margin of Rs 3.4/liter from Rs 3.0/liter

3:23 PM

MARKET COMMENT :: Elara Capital

Given the potential uptick in current and future earnings on the back of corporate tax reductions and expected rate cut ahead of festive season (25bps in Oct19 policy), we believe that the party is far from over. 

 

The market is currently trading at 17.6x (fairly valued vs historical trend and as per our proprietary framework) one year rolling forward earnings. At the current multiple and rolling 1 year forward EPS (INR 680); we reiterate our December 2019 Nifty target of 12,000

3:23 PM

Jefferies on M&M

M&M will acquire a 51% stake in most of Ford's India operations at an EV of US$138mn & equity value of US$93mn. Despite potential cost savings, we do not see much merit to the acquisition of additional manufacturing capacity & Ford's weak domestic franchise especially given investor concerns around M&M's capital allocation. The key logic seems to be to cement its strategic alliance with Ford which can help in technology access & product development in long run

3:22 PM

Emkay Global on United Spirits

Maharashtra is a key profitable state for UNSP and the increasing competitive intensity could impact growth and earnings going forward, in our view. Valuations at 45x FY21E EPS appear rich given downside risks to earnings from rising competition, higher input prices and slower volume growth. We currently maintain our forecasts and Hold rating on the stock with a target price of Rs650

3:07 PM

STOCK ALERT :: YES Bank logs biggest one-day gain ever

3:03 PM

Expert Comment :: RBI Policy expectations | ICICI Securities

-- We expect the August 2019 MPC to vote for a cut in Repo rate by 25 bps, with a 5-1 voting pattern, with a dovish guidance

 

-- Although not our base case, if the proposal on the table is that of 35-40 bps, given growth concerns, this would likely see a 4-2 voting pattern, given couple of members’ apprehensions of further efficacy of monetary policy

 

-- Food inflation could see volatile surges primarily due to vegetables and crop damage due to recent floods in several regions. However, other mitigating factors in the food group, as well as moderating core inflation, should keep overall inflation in check 

 

-- Markets would expect some discussion about transmission in light of the fact that the banking system has just transitioned to an external benchmark linked lending system

3:01 PM

Market check | Sudden decline in Sensex

3:00 PM

Paper stocks fall up to 12% as govt shelves plan to ban single-use plastic

Originally, Prime Minister Narendra Modi had to outline six items on Wednesday, the 150th birth anniversary of Mahatma Gandhi, as part of a broader campaign to rid India of single-use plastics by 2022. Two officials, however, told news agency Reuters, that there would be no immediate move to ban plastic bags, cups, plates, small bottles, straws and certain types of sachets and instead the government would try to curb their use. READ MORE

2:45 PM

Centrum Broking on automobiles

Lull in economic activity, weak freight rates and excess fleet capacity is weighing on commoercial vehicle (CV) volumes. However, three-wheelers (3Ws) were a mixed bag while tractor volumes improved with hope of increase in rural income on the back of good monsoon. With no impact of the policy reforms till now on the sector, we expect earliest recovery will be by H2FY21E with two-wheelers (2Ws) first witnessing a bounce back.

2:42 PM

Domestic gas price revision marginally positive for the urea sector: ICRA

With the recent revision in the domestic gas price from $3.69/mmbtu to $3.23/mmbtu, the pooled price for the fertiliser sector is expected to moderate by $0.19/mmbtu. This should result in lowering of the cost of production and subsidy receivables for the urea players. Natural gas is a key raw material for manufacturing of urea and comprises nearly 70% of the total cost of  producing urea. For the fertiliser sector, nearly 42% of the gas requirement of the fertiliser sector is met through domestic gas while the remaining is met through R-LNG imports. Moreover, the industry is supplied gas at pooled pricing, which takes into account weighted average of domestic and R-LNG prices.

2:41 PM

MARKET CHECK | Top 5 losers on the BSE at present

2:39 PM

MARKET CHECK

2:38 PM

NEWS ALERT | Promoters of Balrampur Chini created pledge on 20% stake on Oct 1

1:52 PM

Abbott India hits all-time high, surges 35% in two months

In the past two months, the stock of the pharmaceutical company has surged 35 per cent after reporting a strong set of numbers for the quarter ended June 2019 (Q1FY20). The benchmark index was up 4 per cent during the same period. READ MORE  

1:28 PM

Anand Rathi Research on Amber Enterprises, India

We initiate coverage on the stock with a Buy recommendation and a target price of Rs 1,248,based on a sum-of-the-parts (SOTP) calculation, which values the standalone business and each of its subsidiaries separately. Synergies of the standalone business and its subsidiaries, along with Sidwal, could together result in the RoCE (return on captal employed) expanding from 14 per cent to 18 per cent over FY19-21. 

 

Risk: Lower volumes in the domestic room-AC segment.

1:19 PM

Market check

1:18 PM

Chart Check: Over 50% stocks in Nifty F&O segment trading below 200 DMA

Out of 150 stocks traded in the Nifty F&O segment, 76 stocks, at present, are trading below their 200-day moving average (DMA). In the Nifty 500 segment, around 268 stocks are trading below it while the benchmark indices, BSE Sensex and Nifty50 are ruling around the same moving average.

 

As the stocks slip below the most crucial moving average i.e 200 DMA, the trend appears to turn weak going ahead. READ MORE

1:07 PM

NEWS ALERT | No structural reason why there can't be a trade deal quickly: US commerce secy

-- Elections are over in India so it should be lot easier to take decisive action

1:04 PM

NEWS ALERT | Feel India-US trade deficit is too high: Wilbur Ross, US commerce Secy at India Economic Summit

-- Deficit due to artificial barrier is of greatest concern

-- Have a focussed effort on trade deficit reduction

1:00 PM

NEWS ALERT | Have been discussing how to break $500 bn barrier in trade: Goyal at India Economic Summit

12:59 PM

NEWS ALERT | Imports from US to India growing at 30%: Commerce min Piyush Goyal

-- Exports from India to the US growing by nearly 20% in the last one year

-- Trade between US, India robust

-- Relation between US, India better than ever before

(As reported by CNBC TV18)

12:55 PM

Expert Comment :: RBI Policy expectations | Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities

The MPC will be going into the meeting with 1QFY20 GDP growth at 5% against estimate of 5.8-6.6% in 1HFY20 and 6.9% for FY2020 and having unequivocally expressed growth as its primary concern. With inflation remaining within its comfort range, despite recent onion price increases, revisions to its growth forecast warrant a sharper-than-usual rate cut in the October policy. We pencil in a 40 bps of rate cut which should be a signal to the market that the MPC is not quite done as it front loads the remaining couple of rate cuts in the cycle. Further, with the start of the external benchmarked loans in October, a larger rate cut will help in quicker transmission of rate cuts even as the non-benchmarked loans continue to factor in the past rate cuts.