MARKET WRAP: Sensex slips 45 pts, RIL falls 2.75%; Rupee hits all-time low

Among sectoral indices, the Nifty Pharma index rose 2.7 per cent led by a rise in Lupin and Dr. Reddy's Laboratories. The Nifty IT index, too, settled 1.8 per cent higher.

3:39 PM

Nifty sectoral gainers and losers of the day

3:37 PM

BSE Sensex: YES Bank, RIL among top losers of the day, Tata Motors top gainer

3:32 PM

Market at close

The S&P BSE Sensex ended at 38,645, down 45 points while the broader Nifty50 index settled at 11,680, up 4 points.

3:14 PM

J B Chemicals gains as board approves buyback

J B Chemicals & Pharmaceuticals rose 1.51% to Rs 342.20 on BSE after the company's board of directors the buy-back of equity shares. The announcement was made during market hours today, 31 August 2018. READ MORE

2:58 PM

Equirus on Century Plyboards

We expect CPBI to post a 18%/21% CAGR in both EBITDA/PAT over FY18-FY21E led by higher contribution from the Laminate and MDF segments. However, we

expect some margin pressure due to higher chemical (RM) costs in laminates, and realization pressure in MDF as competition heats up in North India. We currently have an ADD rating on the stock with a Dec’19 target price of Rs 283.

2:56 PM

Top losers on BSE today

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
YES BANK	343.50	-18.40	-5.08	4233891
KIRLOSKAR OIL	297.80	-15.65	-4.99	7919
KWALITY	19.95	-1.04	-4.95	50184
J KUMAR INFRA	259.85	-10.15	-3.76	24828
TATA COMM	538.00	-20.50	-3.67	21605

2:54 PM

MUST READ ​Why India's world-beating growth is not enough to end its deep jobs drought

The world’s fastest growing major economy isn’t growing nearly fast enough. That may seem like an absurd description for India, an economy the International Monetary Fund expects to expand 7.3 percent in the fiscal year through March 2019 and 7.5 percent in the next. Yet the reality is that even at its current pace, India is having trouble creating enough new jobs for its massive workforce or enough wealth to broaden its middle class READ MORE HERE

2:53 PM

Kotak Securities on Phoenix Mills

2:51 PM

JM Financial on textiles sector

In Jun’18, India’s market share in home textile exports to the US (sum of all products) decreased 5ppt YoY to 29%. In the same month, India’s market share in cotton sheets exports to the US (in USD terms) increased 2ppt YoY to 49%, while market share in terry towels declined significantly by 13ppt YoY to 33%.

India’s exports to the US (in USD terms) in terry towels and cotton sheets declined 16.5%/7.2% YoY YTD, respectively. a) Extension of MEIS (4% export benefit), b) INR depreciation (10% YTD-CY18) and c) settling of market place disruption in the US are a welcome relief to the home textile exporters. High cotton prices (INR 134/kg) remain a key concern.

Recovery in export volumes, increase in export subsidy (ROSL) and cotton price movement in the new season starting Oct’18 are the key monitorables. We remain positive on the space

2:48 PM

Sector watch: Automobiles

India Ratings and Research (Ind-Ra) has maintained a stable outlook for the auto sector for the remainder of FY19. This is in line with Ind-Ra’s earlier expectations of moderate sales volume growth in the passenger vehicle (PV) segment, double-digit growth in the commercial vehicle (CV) segment and steady growth in the two-wheeler segment (2W) on a year-on-year basis.

 

While the growth momentum in CVs is likely to continue, thanks to improved economic activity, increased infrastructure development and improved mining activities, the growth rate is likely to moderate in 2HFY19 due to a higher base. Amid several regulatory changes undergoing in the industry, CV growth would remain susceptible to clarity regarding the new axle load norms and vehicle scrappage policy.

2:30 PM

L&T hits over two-month high; stock up 11% in two weeks

Shares of Larsen & Toubro (L&T) hit an over two-month high of Rs 1,374 per share, up 2%, gaining 11% in the past two weeks after the company announced a share buyback proposal. In comparison, the S&P BSE Sensex was up 2% during the same period. The stock was trading at its highest level since June 4, 2018, on the BSE. READ MORE

2:14 PM

RInfra's Mumbai power biz sale a positive; analysts cautiously optimistic

Completion of its Mumbai power business sale to Adani Transmission and the plan to cut debt sharply from the earlier Rs 220 billion to Rs 75 billion and become a debt-free company by next year pushed the Reliance Infra (RInfra) stock higher by over 7 per cent to Rs 477 levels on the Bombay Stock Exchange (BSE) in intra-day deals on Thursday in an otherwise weak market. READ MORE

2:00 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,601.57	-88.53	-0.23
S&P BSE SENSEX 50	12,214.58	-10.49	-0.09
S&P BSE SENSEX Next 50	35,534.15	+37.54	+0.11
S&P BSE 100	11,997.17	-6.77	-0.06
S&P BSE Bharat 22 Index	3,748.23	+13.15	+0.35

(Source: BSE)

1:45 PM

Nifty Pharma index set to post sharpest monthly rally in 9 years

Shares of pharmaceutical companies were on a roll with the Nifty Pharma index set to post its sharpest rally in past nine years on the back of a strong rally in Sun Pharmaceutical Industries, Aurobindo Pharma, Glenmark Pharma and Dr Reddy’s Laboratories.

 

The pharma index hit a fresh 52-week high of 10,390 in intra-day on Friday, rallied 13% thus far in the month of August. In comparison, the Nifty 50 index was up 2.6% during the month. During the month of June, the pharma index had soared 11.6% against a 0.2% decline in the benchmark index. READ MORE

1:32 PM

Gold rises, but set for longest monthly losing streak in 5-1/2 years

Gold rose on Friday as investors hedged against risks stemming from the ongoing trade dispute, with $1,200 acting as a strong support, but the bullion was headed for its longest monthly losing streak since 2013.

 

Spot gold was up 0.6 per cent at $1,207.06 an ounce, after touching a near one-week low of $1,195.95 on Thursday. Prices are down 1.3 per cent so far this month, on track for a fifth straight monthly decline. US gold futures were up 0.7 per cent at $1,212.80 an ounce. READ MORE

gold

1:14 PM

Amid green shoots, economy to grow 7.6% in Q1 on low-base effect: Report

The economic growth is expected to rise to 7.6 per cent in the April-June quarter of 2018-19 from a sub-six per cent figure in the year-ago period mainly due to a low-base effect, says a report by HDFC Bank.

According to a HDFC Bank research report, growth numbers across sectors in the first quarter are likely to get a boost from a favourable base effect even as there are some genuine signs of revival in the economy. READ MORE

1:01 PM

Crude oil prices may rise further in 2018, remain above $75 a barrel: IEA

In what could be the bad news for consuming countries like India, the International Energy Agency (IEA) has said crude oil prices are likely to rise further in 2018 and may remain above $75 a barrel for some time, owing to the geo-political situations across the world — including Iran sanctions and drop in Venezuela production. READ MORE

12:55 PM

NEWS IMPACT

12:53 PM

NEWS ALERT: LIC's 7.9% investment in IDBI Bank not subject to HC directive

12:51 PM

NEWS ALERT: IDBI board concludes discussion on LIC's investment

12:49 PM

Top gainers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
WELSPUN INDIA	75.45	6.15	8.87
JAI CORP	169.45	11.65	7.38
INDO COUNT INDS.	79.50	4.50	6.00
HIMATSING. SEIDE	295.10	15.95	5.71
PNC INFRATECH	168.45	8.50	5.31

12:42 PM

Uncertainty over Rana Kapoor's reappointment is 'big negative' for YES Bank

Markets, for one, do not like uncertainty – and that’s exactly what’s driving down YES Bank at the bourses. On Thursday, the Reserve Bank of India (RBI) approved the continuation of Rana Kapoor as their managing director and chief executive till further notice.

 

This, analysts believe, has triggered one of the catalysts that can trigger a correction in the stock. On Friday, the stock slipped 7 per cent in intra-day deals to hit an eight-week low of Rs 338 levels. READ MORE

12:33 PM

A fall in Indian stock mkt will be a buying opportunity: CLSA's Chris Wood

The rally in Indian equity markets thus far in calendar year 2018 (CY18) amid a weakening rupee has surprised CLSA’s Christopher Wood, their managing director and equity strategist.

 

One reason why the Indian stock market has been so resilient, Wood says, is that India is primarily a domestic-driven economy and is less exposed to Trump-driven trade concerns. He believes a correction in the Indian equities will be a good buying opportunity. READ MORE

Christopher Wood, Managing Director & Equity Strategist, CLSA

12:17 PM

Sensex set for new highs even though rated expensive: Reuters poll

Indian shares will hit a new record high by year-end despite being rated as expensive, strategists polled by Reuters said, citing high oil prices and election uncertainty as the biggest downside risks to the BSE Sensex. READ MORE

12:01 PM

Market at Noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,636.29	-53.81	-0.14
S&P BSE SENSEX 50	12,222.99	-2.08	-0.02
S&P BSE SENSEX Next 50	35,525.33	+28.72	+0.08
S&P BSE 100	12,003.70	-0.24	0.00
S&P BSE Bharat 22 Index	3,746.86	+11.78	+0.32

(Source: BSE)

11:48 AM

Top contributors to Sensex today

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
INFOSYS	1437.00	19.50	1.38	269361.00	41.99
ITC	321.75	2.55	0.80	390423.10	35.28
LARSEN & TOUBRO	1362.75	13.20	0.98	189206.91	20.97
INDUSIND BANK	1902.00	25.80	1.38	95831.32	14.92
SUN PHARMA.INDS.	650.65	11.15	1.74	70580.21	13.95

11:47 AM

Commodity derivatives: NCDEX's clearing corporation set to go live in Sept

The markets regulator is working to expand the width and depth of the commodity derivatives market.

 

Among the measures are a clearing corporation which is separate from an exchange’s trading function, allowing equity and commodity exchanges to enter each other’s area, inviting proposals for commodity index futures and rules for entry of foreign traders. READ MORE

11:46 AM

ICICI Securities recommends Security and Intelligence Services (SIS) 

We initiate coverage on SIS with an ADD rating and DCF based Jun’19 target price of Rs1240. Market leadership across underpenetrated market segments (especially India Security Services and Facilities management), favourable policy framework, active inorganic strategy and potential for scale-driven operating leverage are the key components of our positive rating on the stock.

11:44 AM

IT stocks gain ground

COMPANY	LATEST( )	CHG( )	CHG(%)	VOLUME
FIRSTSOUR.SOLU.	74.80	0.65	0.88	387904
WIPRO	302.85	4.00	1.34	164102
INFIBEAM AVENUES	228.50	0.45	0.20	155668
HEXAWARE TECH.	437.00	4.30	0.99	133050
INFOSYS	1435.30	17.80	1.26	109166

11:43 AM

Sector watch: Metals & mining

The July production volume for non-ferrous companies has come along expected lines. Key highlights: 1) HZL’s zinc and lead volumes were both down owing to operational issues at the Rampur Agucha mine and maintenance at the Dariba smelter, respectively. 2) Hindalco reported stable aluminium (Al) production while copper (Cu) volumes were crumbled by major maintenance activity in July. 3) Vedanta’s Al volume remained stable though the Cu division was impacted by the ongoing shutdown.

Going ahead, we believe that HZL’s mined metal (MM) production volume would be restored and thus do not see a risk to our full-year estimate. Al volumes at both Vedanta and Hindalco are expected to remain robust and Cu volumes at Hindalco are likely to spring back. Maintain ‘BUY’ on Hindalco, Vedanta and HZL

(Source: Edelweiss Securities)