Sensex slips 162 points, Nifty below 10,500 on fiscal deficit concerns

All that happened in the markets today.

4:17 PM

MARKET COMMENT: Jayant Manglik, President, Religare Broking

Indian market saw another lackluster trading session amid volatility, taking cues from global markets and dismal PMI data. The Nifty index ended down 0.6% led by selling in Banking, Metal and Capital Goods stocks. The broader market indices outperformed the frontline index. On global front, Asian and Europeans markets faltered and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the US.

 

We expect the Indian equities to consolidate in the coming sessions without any major triggers in the near term. Also global developments could lead to market volatility in the near term. However, any further correction at this juncture should be considered as a healthy buying opportunity for investors in quality companies with strong financials and bright outlook. Meanwhile traders should remain cautious and keep their positions hedged, as volatility is likely to remain high in the coming sessions

 

3:41 PM

Sectoral Watch Private banks fall, Nifty Bank ends 1% lower

3:39 PM

Sectoral watch Nifty PSU Banks pare losses, ends in green

3:34 PM

Sectoral Trend

3:33 PM

Sensex top gainers and losers

3:33 PM

Markets at Close

 

The S&P BSE Sensex ended at 34,184, down 162 points while the broader Nifty50 index settled at 10,492, down 61 points.

3:27 PM

Infosys gains for second straight day in weak market

Infosys was up nearly 4% to Rs 1,189 on Wednesday in intra-day trade, extending its Tuesday’s 0.6% gain on the BSE in otherwise weak market. The stock trading close to its 52-week high of Rs 1,220 touched on January 24, 2018 in intra-day trade. READ MORE

3:23 PM

April-January fiscal deficit touches 113.7% of full-year target

 

India reported on Wednesday a fiscal deficit of Rs 6.77 trillion ($103.72 billion) for April-January or 113.7 per cent of the target originally set for the fiscal year that ends in March.

 

Net tax receipts in the first ten months of 2017/18 fiscal year were Rs 9.7 trillion, government data showed. READ MORE

3:14 PM

Elara Capital on Strides Shasun

 

Given corporate actions over FY17-18, the company will now focus on the B2C model, which remains profitable with improved leverage. It has multiple drivers, comprising the US, Australia & EU generics, branded formulations across Africa and institutional supplies (HIV & malaria). 

 

We see a pickup in profitability, aided by niche launches in the US, healthy institutional supplies and continued momentum in the Australia business. Recommend Buy with a target price of Rs 1,025 on 18x December 2019E P/E and Rs 70 for its API business.

3:14 PM

PNB scam throws long shadow on diamond industry in Surat, deals drop 10%

 

The Nirav Modi-Mehul Choksi scam has thrown a long shadow on the diamond polishing and trading industry, with its hub in Surat, Gujarat. Deals are down 8-10 per cent since the incident came to the fore on February 14. “Diamantaires do not want to take chances. Also, now, banks are tight-fisted about disbursing working capital, especially to diamantaires. This has slowed business by at least 10 per cent,” said Kirti Shah, a Surat-based diamond polisher and trader. READ MORE

3:00 PM

Market Check

S&P BSE Sensex	34,259.90		-0.25%
Nifty 50	10,515.45		-0.37%
S&P BSE 200	4,600.39		-0.24%
Nifty 500	9,273.65		-0.31%
S&P BSE Mid-Cap	16,574.26		-0.16%
S&P BSE Small-Cap	18,112.52		0.12%

2:58 PM

FISCAL DEFICIT: April-January revenue spending at Rs 15.75 trillion, at 81% of FY18 target of Rs 19.45 trillion

2:56 PM

FISCAL DEFICIT: April- January capital spending at Rs 2.64 trillion, at 96.9% of FY18 target of Rs 2.73 trillion.

2:54 PM

FISCAL DEFICIT: April-January tax revenue at Rs 9.71 trillion, at 76.5% of FY18 target of Rs 12.69 trillion

2:52 PM

FISCAL DEFICIT: Apr-Jan total spending at Rs 18.39 trillion, at 83% of FY18 target of Rs 22.17 trillion

2:48 PM

Just in April-January fiscal deficit at Rs 6.77 trillion vs Rs 5.64 trillion year-on-year

2:38 PM

Sectoral Trend

2:31 PM

Motilal Oswal Research on UPL

 

We expect UPL to clock 12% revenue CAGR and 14% PAT CAGR over FY18-20 and value the company at 17x FY20E EPS of INR55.6, arriving at a TP of Rs 945. Initiate coverage with Buy.

2:20 PM

PNB fraud & more: Nifty PSU Bank index set for worst monthly fall in 2 yrs

With shares of public-sector banks continuing to reel under pressure on Wednesday, the Nifty PSU Bank index looks set to post its sharpest monthly fall in two years. The Nifty PSU Bank index, the largest loser among sectoral indices, was trading 1.9% lower in intra-day deals, falling 18.5% so far in February. It is trading close to its 52-week low of 2,928, touched on October 19 last year. By comparison, the Nifty 50 index has lost 4.3% and the Nifty Private Bank index has shed 5.9% this month. CLICK HERE FOR FULL STORY

2:10 PM

Market Check

S&P BSE Sensex	34,154.72		-0.56%
Nifty 50	10,475.50		-0.75%
S&P BSE 200	4,585.55		-0.56%
Nifty 500	9,239.70		-0.67%
S&P BSE Mid-Cap	16,503.36		-0.59%
S&P BSE Small-Cap	18,042.69		-0.26%

2:08 PM

ABC India surges 19% on order win of Rs 1,419 million from BHEL

ABC India surged 19% to Rs 109 on the BSE in intra-day trade after the company announced that it has been awarded an order of Rs 1,419 million from the state-owned company BHEL. The order is for multimodal transportation of export project cargo from India to the MSTPP Rampal Project in Bangladesh, ABC India said in a regulatory filing. READ MORE

1:56 PM

MUST READ PNB scam: How do you make regulators accountable?

Finance Minister Arun Jaitley has said that in India while the political leadership is held accountable for all its actions and inaction, the regulators are not accountable in the same way. Mr Jaitley’s comment came in the wake of the letter of undertaking (LoU) scam that has engulfed the state-controlled Punjab National Bank. CLICK HERE FOR FULL STORY

1:45 PM

Sharekhan on Indian Oil Corporation (IOC)

 

We believe that the profitability of the Paradip refinery would be the key monitorable in Q4FY2018 as the refinery has largely stablised and is believed to have commenced processing of heavy crude oil. 

 

Moreover, we maintain our positive view on domestic petroleum demand growth (expect 5% volume CAGR for diesel and 7% for petrol over FY2017-FY2020E) and thus expect mid-single digit volume growth for IOCL (However, it would not be at par with industry growth rates due to intensifying competition from private players).

 

Retain positive stance on IOCL with 18-20% upside potential from current levels.

1:33 PM

Lending rate hike coming? SBI raises term deposit rates across maturities

State Bank of India (SBI) on Wednesday raised retail deposit rates by 10 to 50 basis points across various maturity baskets, a move that may have to be followed by the banking system. CLICK HERE FOR FULL STORY

1:23 PM

COMMODITY CUES - Soybean: Local factors underpin prices

 

Indian Soybean prices also rallied substantially since the start of this calendar year. While global bullish factors supported local Soy prices, local primary factors caused a surge in Indian Soy prices. NCDEX Soybean spot prices rose near 25% in the last 2 months on the back of tighter supplies. Along with lower arrivals and tighter supplies, downgrade of Indian Soy crop also aided the bullish sentiment. Indian Soy trade body reduced its estimate of Indian crop output to 8.35 m MT from 9.15 m MT.  The rally in Soy prices surprised local Soy meal consumers who were short of supplies.

 

(Source: IIFL report)

1:09 PM

Air India stake sale: Govt may include call and put options in agreement

The government is likely to include call and put options in the share purchase agreement of Air India to profitably sell its residual stake in the airline after strategic disinvestment. READ MORE

1:03 PM

World steel output in January at 139.4 million tonne, up 0.8% yoy

Global crude steel production stood at 139.4 million tonnes in January, marginally up by 0.8 per cent from the corresponding period last year as India and Japan made a sizeable contribution, the World Steel Association said in its release. READ MORE

12:53 PM

Nomura on Bajaj Auto

 

We remain Neutral on Bajaj Auto. While we expect exports to grow at a ~12% CAGR over FY18-21F, its absence from scooters will make growth in domestic 2Ws more challenging. Also, the 3W segment has risk from high cost increases due to BS-VI, and EVs like e-rickshaws and e-autos.

12:50 PM

Morgan Stanley cuts its India overweight to 50 bps, citing weak earnings

Morgan Stanley has reduced its overweight stance on India in its portfolio to 50 basis points (bps) from 150 bps earlier, citing disappointment in earnings. Going ahead, it sees the impact of higher oil prices, the election calendar and the prospect of a higher deficit as obstacles for the market index. “We cut our overweight in India to 50 bps, after disappointing earnings season and slowing revisions breadth. READ MORE

12:40 PM

Ashok Leyland hits fresh high ahead of February sales figures

Shares of Ashok Leyland hit a fresh high of Rs 142, up 3% on the BSE in intra-day trade in otherwise weak market ahead of February sales figures. The commercial vehicles (CV) maker will announce its monthly sales volumes data on Thursday, March 1, 2018. READ MORE