Markets shake off Korea tensions: Sensex ends 107 pts higher, Nifty at 9952

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3:53 PM

Analyst view

 

Anand James, Chief Market Strategist, Geojit Financial Services says: Domestic indices traded in a range during the early hours as the investors kept a cautious stance as tensions over Korea brewed. However the positivity from European peers reinstated buying interest during in the second half and with few domestic signals, markets will look up to global cues, especially central bank announcements.

3:42 PM

Nifty IT was one of the top sectoral gainers on NSE led by gains in Tech Mahindra, Just Dial, TCS and Tata Elxsi

3:40 PM

Nifty Realty up 1%

Source: NSE

3:38 PM

Sectoral Trend

Source: NSE

3:36 PM

Top gainers and losers on BSE Sensex

Source: BSE

3:34 PM

Broader Markets

Broader markets outperformed benchmark indices with BSE Midcap and BSE Smallcap indices up 0.6% and 1% respectively

3:33 PM

Markets at Close

Benchmark indices ended higher as the Street shrugged off lingering concerns about the escalating North Korea crisis. The S&P BSE Sensex ended at 31,809, up 107 points while the broader Nifty50 index settled at 9,951, up 39 points

3:22 PM

Bank of Baroda keeps MCLR unchanged

 

Bank of Baroda rose 1.10% to Rs 138.25 on BSE after the bank said that it has decided to keep marginal cost of funds based lending rates unchanged. The stock had hit a high of Rs 138.65 and a low of Rs 136.05 so far during the day. 

3:13 PM

Oil Check

 

In commodity markets, US WTI oil prices edged higher, while US gasoline prices slumped to pre-Hurricane Harvey levels, as oil refineries and pipelines in the US Gulf Coast slowly resumed activity, easing supply concerns.

 

US West Texas Intermediate (WTI) crude futures ticked up 0.2% to trade at $47.38 per barrel, though global benchmark Brent prices barely budged at $52.37.

3:01 PM

Hotel Leela's clarification

Hotel Leelaventure today said there is no final agreement with any party to sell its Chennai hotel, though negotiations are on to sell the property in coordination with JM Financial.

 

The company has already received shareholders' nod for the 'sale of hotels in Delhi/Chennai' in September 2016, Hotel Leelaventure said in a filing to BSE.

 

The hospitality chain was reacting to a media report that Marigold Capital and Investments has agreed to buy the company's Chennai property.

 

2:52 PM

Dewan Housing gains

Dewan Housing rose 3.55% to hit its record high on sustained buying interest. On the BSE, 1.57 lakh shares were traded on the counter so far as against the average daily volumes of 2.36 lakh shares in the past one quarter. The stock had hit a high of Rs 539 so far during the day, which is a record high.

2:38 PM

Market Check

Equity benchmarks continued to trade higher with moderate gains, backed by Reliance Industries and realty, banking & financials stocks.

 

At 2:38 pm, the S&P BSE Sensex was trading at 31,854, up 151 points while teh broader NIfty50 index was ruling at 9,959, up 47 points

2:21 PM

IDBI moves SC against stay of insolvency proceedings against Jaypee
 

The Supreme Court on Tuesday agreed to hear IDBI Bank's plea seeking modification of its order staying insolvency proceedings against embattled real estate firm Jaypee Infratech on September 11.

 

A bench comprising Chief Justice Dipak Misra and Justices Amitava Roy and A M Khanwilkar considered the submission of the bank that staying the order of the National Company Law Tribunal (NCLT) in Allahabad had reversed the position and, as a consequence, the company had gone back to defaulting promoters.

2:04 PM

RIL gains

Reliance Industries advanced 1.16% to Rs 1,630.05 on BSE after a foreign brokerage reportedly stated that it expects the company's gross refining margins to gain on a global supply glut concerns.

 

1:39 PM

Europe Check

European markets were mixed, as geopolitical tension concerning North Korea kept investors at bay while markets lacked overnight guidance due to a Labor Day holiday in North America.

 

The pan-European Stoxx 600 edged marginally higher shortly after the opening bell, with sectors and major bourses pointing in opposite directions.

1:20 PM

BUZZING STOCK

D-Link (India) rose 3.16% to Rs 93.05 on BSE, with the stock recovering on bargain hunting after Monday's slide triggered by company's weak Q1 results.

 

It reported net loss of Rs 10.59 crore in Q1 June 2017 as against net profit of Rs 0.51 crore in Q1 June 2016. Net sales declined 39% to Rs 92.17 crore in Q1 June 2017 over Q1 June 2016.

1:00 PM

Over 200 BSE-500 stocks under-perform since August

 

As the markets remain in a consolidation mode after the S&P BSE Sensex fell 2.6% (873 points) from its closing high of 32,575, hit on August 1, 2017, there are over 200 stocks in the BSE500 index that underperformed the indices and fell up to 58% during this period. Meanwhile, Nifty50 index also cracked 1.9% (201 points) from its closing high of 10,114. READ FULL REPORT HERE

1:00 PM

IPO Review: Bharat Road Network Ltd

 

Incorporated in 2006, BRNL is a BOT company focused on development, operation & maintenance of road projects. Currently, it has six BOT projects. Out of these, five are complete/partially complete. Residual concession period for its BOT projects is 18.5 years. 

 

Key concerns for BRNL:- i) all subsidiaries, associates companies made losses in last two years ii) delay in project construction may lead to cost overrun for under construction/new projects and ii) it has pledged a portion of its shares in subsidiaries and associates. 

 

The company is looking to raise around Rs 601 crore (at Rs 205/share) with a fresh issue of nearly 2.93 crore shares. Post IPO, promoter & promoter group’s stake would be reduced to 65.1%.

 

At the higher end of IPO price band of Rs 205, the stock is valued at 1.4x FY17 P/BV (post issue), which appears to be at par with other established player such as IRB Infrastructure (1.4x FY17 P/BV). Looking at the quality of projects (most projects commissioned in the past few years), we believe it should be at a discount to IRB

 

 

Source: ICICI Securities

12:56 PM

Reliance Securities on Coal India

 

We believe that CIL’s current stock price has discounted decline in e-auction coal prices. We expect volume and realisations to recover in FY18E. Moreover, valuations of 11.5x FY19E EPS seem to be inexpensive.

 

Improvement in the policy environment and infrastructure spend coupled with manufacturing activities will aid in reviving the demand environment for the power sector thereby higher coal demand. Reiterate our BUY recommendation on the stock with a Target Price of Rs 301

12:43 PM

Nifty nears 9,900 

Top five losers on the index 

12:30 PM

Markets turn flat

 

At 12:30 pm, the Sensex was trading at 31,702, down 0.24 points, while the Nifty50 was ruling at 9,911, down 1 points. 

12:05 PM

Jaypee Infratech erases gains, slips 5%

 

After witnessing a relief rally on Monday post Supreme Court stayed National Company Law Tribunal's (NCLT) order initiating insolvency proceedings against Jaypee Infratech, the company erased all its gains to fall as much as 4.8% to Rs 17.60 in intra-day on Tuesday. The stock gained 4.8% on Monday after the Apex Court ruling came out. READ MORE

11:57 AM

Japan Aug services PMI 

 

Japan's services sector expanded in August at the slowest rate in six months as the pace of new orders eased, a private survey showed on Tuesday in a sign the economy is losing some momentum after this year's solid gains.

 

The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) fell to a seasonally adjusted 51.6 from 52.0 in July.

11:41 AM

Edelweiss Securities on Sun TV

 

Star India has bagged the Indian Premier League’s (IPL) digital and television media rights for the next five years for a whopping Rs 16300 crore. Moreover, Vivo also retained the IPL title sponsorship at bid price of Rs 2200 crore for 5 years. It is debatable whether IPL will be profitable for Star India (media rights), Sun TV (owner of Sunrisers Hyderabad) has emerged clear winner as higher media and sponsorship rights will bolster its revenues. Sun TV also stands to benefit from decline in franchise cost with the change in fee structure from fixed (Rs 85. 5 crore) to 20% of revenues (lower cost during bad years), leading to upside of Rs 50 crore (pari passu). Maintain ‘BUY’.

11:20 AM

Buzzing stock

Hotel Leelaventure rallied over 8% to Rs 25, its highest level in three months, following news reports that US private equity fund Marigold Capital & Investments is looking to buy company’s hotel in Chennai. BSE has sought clarification from the company with reference to the same news. The reply is awaited.  

11:05 AM

Coal India: There's good news finally

 

For Coal India, which has lost almost a third of its market value from the highs seen in August last year and having touched its all-time intra-day low of Rs 234 on August 11, 2017, things may be turning around. READ MORE

10:42 AM

Consumer stocks and premium valuations

 

The reality is that disruption is underway even in the consumer space. Be it packaged food or consumer products, the moats around these businesses are under threat. Current valuations and investor thinking do not seem to be adjusting for this oncoming disruption. READ FULL VIEW HERE

10:38 AM

Morgan Stanley on ECB meeting

 

The ECB is unlikely to announce QE tapering at this week's meeting. We think that it'll likely do so at the following one in late October. The upcoming meeting should see a change in the QE easing bias. We expect the inflation projections to come down, but to still show an upward trend in core

10:36 AM

EDELWEISS ON AUTO SECTOR

 

The robust growth momentum seen in July extended across segments in August as well. Inventory re-stocking post GST rollout and early festive season lent impetus to PVs, 2Ws and tractors, while  M&HCVs sprung biggest surprise. We attribute the zest to normalising production post BS-IV and replacement led demand. We expect tonnage growth in M&HCVs to sustain higher than volumes (similar to July – refer chart 2). 

 

Key takeaways: a) YoY PVs grew 17%, 2W volumes moved up 14% (scooter led) and M&HCV grew 34% YoY; b) higher ticket segments (PVs and premium bikes) maintained strong demand traction; c) Maruti Suzuki (MSIL) and Tata Motors (TTMT) gained share in PVs and M&HCVs, respectively, while Hero MotoCorp (HMCL) lost share in 2Ws. 

 

Our pecking order in auto space remains - Ashok Leyland (AL; profitable market share gains), Eicher Motors (EIM; structural premiumisation play) and MSIL (widening gap with peers)

10:35 AM

Nikkei India Services PMI

 

Registering 47.5 in August, the seasonally adjusted Nikkei India Services PMI Business Activity Index pointed to a second successive decline in output. Rising from 45.9 in July, however, the latest figure was indicative of a softer rate of reduction that was moderate overall. The downturn was often associated with the implementation of the GST, though there were also mentions of shortages of inputs