Sensex ends 137 pts down, Nifty at 10,458 levels; PSU banks fall

All that happened in the markets today.

3:38 PM

Top Sectoral loser: Nifty PSU Bank index

3:36 PM

Sectoral Trend

3:34 PM

Top Sensex gainers and losers

3:32 PM

Markets at Close

The S&P BSE Sensex ended the day at 34,047, down 137 points while the broader Nifty50 index settled at 10,458, down 34 points

3:19 PM

ALERT: Indian equity, forex and commodity markets will remain closed on Friday, March 2, on account of Holi.

3:15 PM

Sector watch: Auto

The demand for auto components from domestic original equipment manufacturers (OEMs), especially high volume two-wheeler (2W) and passenger-vehicle (PV) industry which together constitute about two-third of overall ancillary industry size, has remained strong in Q3FY2018. Moreover, stellar growth in CV as well as tractor segment has further supported overall volume growth.

According to an ICRA note on the industry, given the indicative trends, the growth momentum is expected to sustain in Q4FY2018 as well. This will be strongly supported by improved demand outlook in key end user segments as well as expected pickup in rural income. Going forward, pickup in infrastructure activity will further drive growth in construction & mining equipment as well as the tipper segment (classified under M&HCVs)

(Source: ICRA report)

3:13 PM

Fund flow tracker: January month flow update

 

India flows—listed funds turned net buyers in January. India saw inflows of US$3 bn, led by US$1.7 bn of non-ETF inflows and US$1.3 bn of ETF inflows. GEM funds saw higher inflows than India-dedicated funds. GEM funds saw US$1.7 bn of inflows (US$919 mn of ETF flows and US$745 mn non-ETF flows). India-dedicated funds saw US$821 mn of inflows, led by non-ETF inflows of US$579 mn.
 

Emerging market flows—China saw the highest inflows, US$9.2 bn, led by strong non-ETF flows of US$5.5 bn. Total FPI activity and EPFR activity showed similar trends for most of the countries in January.

Country allocations—allocations to India and China constitute more than one-third of the average Asia ex-Japan fund portfolio. Allocation to India by Asia ex-Japanese funds declined to 11.8% in January from 13.6% a year ago. Fund allocation to India by GEM funds declined to 9.8% from 10.8% a year ago. Allocation by Asia ex-Japan non-ETF funds to India declined to 12.3% in January from 14.2% in January 2017. Allocation to India by GEM ETF funds increased to 9.4% in January from 9.3% a year ago.

(Source: Kotak Securities report)

foreign flows, Stock markets

3:10 PM

Weight of cyclicals to go up in Nifty50

Effective April 2, Ambuja Cement, Aurobindo Pharma and Bosch will make way for Grasim Industries, Titan and Bajaj Finserv in Nifty 50. Consequently, the sectoral weight will increase in Consumer Discretionary (+82bps), NBFC (+61bps) and Cement (+60bps) at the expense of Auto (-55bps), Pharma (-47bps) and Private Bank (-34bps). Moreover, the number of financials will increase to 11 and their weight will marginally increase from 36.4% to 36.6%

(Source: Elara Capital report)

3:08 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,058.09	-125.95	-0.37
S&P BSE SENSEX 50	10,924.42	-35.10	-0.32
S&P BSE SENSEX Next 50	33,682.82	-208.28	-0.61
S&P BSE 100	10,825.16	-39.79	-0.37
S&P BSE Bharat 22 Index	3,579.61	-16.94	-0.47

(Source: BSE)

3:08 PM

K R Choksey Institutional Research on VA Tech Wabag

At Rs 550, the stock is trading at 14.2x on FY19E and 11.4x on FY20E of our earnings estimates. The stock has been historically trading at medium multiple of ~17x on 1 yr fwd and ~12x 2yr fwd P/E band. However, valuations improved at the time of NDA victory on the expectations of uptick in the order activity.

We expect more wastewater treatment order to be announced before next election and hence, players like VA Tech Wabag are expected to benefit from this process. This, in turn, could improve valuations of the company and hence, valuing the company at 15x on FY20E earnings of Rs 48.1, we have arrived a target price of Rs 722, potential upside of 31% from Rs 550. We have ‘BUY’ rating on the stock.

3:05 PM

Edelweiss on HUL

We envisage HUL to be key beneficiary of anticipated rural recovery and herbal push. We estimate better-than-expected volume growth (trend too indicates the same) and with rural revival in the offing, we retain our target multiple of 47x and arrive at target price of rs 1,518 on FY20E EPS. Maintain ‘HOLD/Sector Performer’ since at the current market price, the stock offers limited upside

3:04 PM

Kotak Securities on Indian economic growth

Upward revision of CSO’s first advance estimate of Real GDP and GVA growth affirms visible signs of an underlying improvement in the economy. The pickup in the quarterly GVA growth was largely witnessed in manufacturing, construction and agriculture. We expect the economy to recover to 7.1% in FY2019. In the backdrop of a gradual recovery, we expect RBI to maintain status quo at least through 1HCY18 while closely assessing the upcoming inflation prints

3:03 PM

Etihad Airways may sell its entire 24% stake in Jet Airways: CAPA

 

Abu Dhabi-based Etihad Airways may sell its entire 24 per cent stake in Jet Airways by the third quarter of FY 2019 as it redraws its growth strategy, aviation consultancy CAPA said in a report.

 

The CAPA report has been prepared for private circulation and is not available on its website. The consultancy tweeted today “CAPA research indicates that Etihad may divest its 24% stake in @jetairways, possibly by Q3 of FY2019. This could lead to a rationalisation of capacity between India and the Gulf, particularly Abu Dhabi.” READ MORE

2:57 PM

ONGC seeks shareholders' approval for HPCL deal worth Rs 369.15 bn

 

State-owned Oil and Natural Gas Corp (ONGC) has sought shareholder approval for its decision to buy government's 51.11 per cent stake in Hindustan Petroleum Corp Ltd (HPCL) for Rs 369.15 bn.

 

With government also being a majority shareholder in ONGC, the acquisition fell in the definition of related party transaction for which shareholder nod is needed as per law, the company said in a shareholder notice seeking approval for the deal through a postal ballot. READ MORE

2:42 PM

Top Sectoral loser: Nifty PSU Bank index

2:29 PM

BSE to delist 36 cos from Mar 5 as shares remain suspended for over 3 yrs

Leading stock exchange BSE will delist 36 companies from next week as trading in their shares has remained suspended for over three years.

These companies will be delisted from March 5, BSE said in two separate circulars READ MORE

2:15 PM

Cloud over tax sops for eligible foreign investors trading at GIFT City

 

Despite tax sops doled out to lure investors transacting at the Gujarat International Finance Tec-City (GIFT), entities known as eligible foreign investors, or EFIs, are still unsure if they would escape the tax net.

 

EFIs are not registered as FPIs and there is a concern that income earned by these entities from transactions done on the IFSC exchanges might be classified as business income. This could mean a hefty tax outgo of 40 per cent plus surcharge and cess. READ MORE

2:00 PM

What to make of US Fed chairman Jerome Powell's hawkish testimony

Jerome H Powell, the newly minted Chairman of the US Federal Reserve (US Fed) came out as a clear hawk in his first testimony before the Congress on Tuesday.
 

Powell said that his expectations for domestic economic growth have increased since the beginning of the year, citing the passage of the $1.5 trillion tax cut, lifting of the debt ceiling and stronger global growth. READ MORE

1:45 PM

Venky's (India) hits new high; stock zooms 1600% in two years

Venky’s (India) continued its upward march for the seventh straight trading day, hitting new high of Rs 4,530, up 15% on the BSE in otherwise subdued market. The stock rallied 69% from Rs 2,673 on February 20, 2018, as compared to 1.3% rise in the S&P BSE Sensex. READ MORE
 

1:29 PM

Fortis Healthcare trades flat despite poor December-quarter earnings

Fortis Healthcare was trading flat on Thursday even after the company reported a consolidated net loss of Rs 191 million for the quarter ended December 2017 against a profit of Rs 4.5 billion year-ago periods. READ MORE

1:14 PM

MFs' equity portfolio hit hard during February corrections

February was a tough month for India's equity asset managers. With a sudden and sharp decline after the Union Budget, several of the equity schemes lost value and under-performed their respective benchmarks. In a month where key stock indices lost about 5 per cent, almost all of the 20 top most invested stocks by mutual funds lost, on an average, about 6 per cent of their value. READ MORE

1:00 PM

Market Check

 

S&P BSE Sensex	34,154.77		-0.09%
Nifty 50	10,488.85		-0.04%
S&P BSE 200	4,592.18		0.01%
Nifty 500	9,261.15		-0.01%
S&P BSE Mid-Cap	16,568.93		0.04%
S&P BSE Small-Cap	18,175.02		0.26%

12:52 PM

Sensex gainers and losers

12:46 PM

Mimicking fund managers of no use to investors wanting to double earnings

The Nifty Smallcap 250 index is trading at a PE of 100-plus, which implies investors are looking for a doubling of earnings within a year. While individual businesses, especially small businesses starting from a low base, can double earnings within a year, it is utterly impossible for a batch of 250 companies spread across multiple sectors to do this. READ MORE

12:38 PM

Sectoral Trend

12:29 PM

Alteria Capital makes first close for $125-mn venture debt fund

Venture debt firm Alteria Capital, founded by two former executives of InnoVen Capital, announced the first close of its maiden venture debt fund. It has received commitments of $55 million (Rs 3.56 billion) for the Rs 8-billion venture debt fund, with a greenshoe option of Rs 2 billion. READ MORE

12:15 PM

WhatsApp refuses to share user-specific data with Sebi

Instant messaging platform WhatsApp has declined to share user-specific data with the Securities and Exchange Board of India (Sebi), citing its privacy policy.
 

The market regulator had written to WhatsApp, seeking information on the origin of messages that allegedly contained unpublished price-sensitive information of listed companies, sources said. The information is crucial for Sebi’s investigation into the leakage of financial data at blue-chip companies. READ MORE

12:01 PM

ICICI Bank trades lower for third straight day; hits over two-month low

ICICI Bank was trading lower for the third straight day, down 2.7% to Rs 305, an over two-month low on the BSE in intra-day trade on Thursday.
 

The stock of private sector lender hit its lowest level since December 12, 2017. In past three trading sessions, ICICI Bank was down 6.7% against 0.89% decline in the S&P BSE Sensex. READ MORE

11:45 AM

Godrej Agrovet hits highest level since listing

Godrej Agrovet rallied 10% to Rs 667 on the BSE in early morning trade in otherwise subdued market on back of heavy volumes.

The stock of Godrej Group Company was up 45% against issue price of Rs 460 per share hit its highest level since listing on October 16, 2017. It made a strong debut by gaining 30% to close at Rs 596 on debut day. READ MORE

11:27 AM

Market Check

S&P BSE Sensex	34,120.28		-0.19%
Nifty 50	10,490.65		-0.02%
S&P BSE 200	4,587.65		-0.08%
Nifty 500	9,260.75		-0.01%
S&P BSE Mid-Cap	16,546.04		-0.10%
S&P BSE Small-Cap	18,186.21		0.32%