Sensex ends flat, Nifty settles below 10,150 ahead of Fed outcome

All that happened in Wednesday's trade

3:50 PM

Anand James, Chief Market Strategist, Geojit Financial Services 

 

Domestic indices traded flat for the second consecutive day ahead of the FOMC rate decision scheduled later today. FII's passive trading approach with capital inflow limited to primary market and debt also might have weighed down the momentum of the indices near the record high levels. Investors could now be eying GST rate revisions and updates on GST implementation in the petroleum products to take the next crucial step.

3:50 PM

Sectoral trend at close

Source: NSE

3:43 PM

Top gainers and losers on Sensex

Source: BSE

3:40 PM

Market breadth

 

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,358 shares declined and 1,215 shares rose. A total of 160 shares were unchanged.

3:38 PM

Broader markets

 

The BSE Smallcap index pared gains to end 0.1% lower, while the BSE Midcap index closed flat. 

3:37 PM

Markets end little changed

 

The Sensex settled at 32,400, down 2 points, while the Nifty closed at 10,141, down 6 points. 

3:25 PM

IUC cut to dent margins of Bharti and Idea

 

The move, analysts believe, will negatively impact margins of the incumbent telecom companies- Bharti Airtel and Idea Cellular. Reliance Jio, on the other hand, will stand to gain. They also believe that the ultimate beneficiary of the move will be the consumer that could end up paying less for voice calls. Since the usage is moving more towards data, with interconnect charges seeing a steep cut and sharp growth in data uptake, incumbents will introduce more (data and voice) bundled plans going ahead. READ FULL STORY

 

3:19 PM

Jaitley briefs media after Cabinet meeting

 

JUST IN: Govt to transfer ITDC hotels in Jaipur, Mysore, Itanagar to states

3:16 PM

Jaitley briefs media after Cabinet meeting

 

JUST IN: Cabinet okays transfer of 3 more ITDC hotels to states

3:12 PM

European markets

European stocks hovered in cautious trade on Wednesday ahead of a policy decision by the US Federal Reserve, with rate-sensitive banking shares edging lower. The pan-European STOXX 600 was flat in percentage terms, helped by buoyant energy stocks and gains among the more defensive health care sector, while euro zone blue chips retreated 0.1%. Britain's FTSE was listtle changed, while France' CAC 40 was trading marginally higher. 

3:04 PM

Buzzing stock

 

SMS Lifesciences is locked in upper circuit for the 24th straight session, up 5% at Rs 475 on BSE, with only buyers seeing on the counter. READ MORE

 

2:58 PM

Sebi revokes ban on 114 entities

 

Markets regulator Sebi has revoked trading ban imposed on 114 entities, which had come under the scanner for alleged manipulation and misuse of stock market platform for tax evasion, saying it did not find any adverse evidence against them. READ FULL REPORT 

2:41 PM

Bharti Airtel recovers after initial fall

 

Bharti Airtel recouped losses in noon deals to trade at Rs 395 levels after falling nearly 6% to Rs 370 on the Bombay Stock Exchange (BSE). Idea Cellular, on the other hand, continued to trade over 2% lower at Rs 81 levels. READ FULL REPORT

2:23 PM

Nifty PSU Bank leading sectoral gainer in noon deals 

Source: NSE

2:07 PM

Broader markets

 

The BSE Smallcap index outperformed to add 0.2%, while the BSE Midcap index was little changed. 

1:50 PM

Markets check 

 

At 1:50 pm, the Sensex was trading at 32,435, up 33 points, while the broader Nifty50 was ruling at 10,148, up 0.90 point. 

1:36 PM

Buzzing stock

 

Oil and Natural Gas Corp (ONGC) rose as much as 3% to a three-month high after Reuters reported that the oil explorer discovered reserves of about 20 million tonnes of oil and gas, citing sources. READ FULL REPORT 

1:19 PM

Kotak Institutional Securities on cement companies 

 

Valuations of cement companies are rich, and factor improved contribution from expanded capacities. However, we caution that cement companies will either have to adopt a modest capacity ramp-up or risk disruption in cement prices.

 

A way out would be a robust demand growth, that can better help absorb incremental capacities—though current demand trends and likely curtailment of government spending (owing to budget constraints) are not supportive of a strong demand revival.

1:03 PM

ONGC discovers 'good' offshore oil, gas field with reserves of 20 mn tonnes

 

Oil and Natural Gas Corp to the west of its Mumbai High offshore fields is estimated to hold in-place reserves of about 20 million tonnes, sources with knowledge of the matter said.

 

The Mumbai High field annually produces oil and natural gas of about 9 million to 10 million tonnes of oil equivalent. The company discovered hydrocarbon reserves west of Mumbai High at well WO 24-3 in July.

 

ONGC tested nine zones in the well, the two sources with knowledge of the matter told Reuters.

12:50 PM

These stocks rallied over 50% in 1 week

Bharati Defence and Infrastructure, Walchandnagar Industries, Shivalik Bimetal Controls, Toyo Rolls and Tinplate Company are among 10 stocks, which have rallied more than 50% in past one week.

 

Click here for full list

12:37 PM

SBI Life Insurance IPO opens today. Should you invest

SBI Life Insurance Company Ltd is the India’s largest private life insurer in terms of new business premium (NBP) generated in each fiscal year since FY10. It has also increased its market share of NBP generated among private life insurers in India, from 15.9% in FY15 to 20% in FY17. 

 

Over FY15-17, the company’s NBP increased by 35.5% CAGR, which is the highest among the top five private life insurers (in terms of total premium in FY17) in India.

 

Click here  to find what leading brokerages and research houses suggest.

12:20 PM

Tata Motors steps on the accelerator, JLR adds pace

 

Tata Motors has gained about 13% over the past 10 trading sessions on better earnings growth prospects and on reports that the promoters are increasing their stake in the company.  

 

Currently, promoter group companies together have a 34% share in Tata Motors, of which Tata Sons alone holds 31%. Analysts at Bank of America-Merrill Lynch and Motilal Oswal Securities say the second half of financial year 2017-18 (FY18) would be better aided by new launches and changes to the hedging policy.  READ MORE

11:59 AM

SBI Life raises Rs 2,226 crore from anchor investors

Country's largest private sector life insurer SBI Life Insurance Company has allotted 31.8 million shares worth Rs 2,226 crore to 69 anchor investors. The allotment was made at Rs 700 apiece, the top-end of the IPO prove band. 

 

SBI Life's Rs 8,400-crore IPO opens on Wednesday and will close on Friday. 

 

Some of the anchor investors are Blackrock, Canada Pension, Govt of Singapore, Aranda, Abu Dhabi Investment Authority, HSBC, Wells Fargo, Kuwait Investment Authority and Rochdale. 

 

The price band for the IPO is Rs 685 to Rs 700 per share. READ MORE

11:44 AM

Tyre stocks rally up to 11% after govt imposes anti-dumping duty

Shares of tyre companies such as J&K Tyre, MRF, Apollo Tyres, and TVS Srichakra etc rallid up to 11% follwoing news reports that the goverment has imposed the anti-dumping duty on import of certain type of radial tyres used in buses and trucks.

 

The decision has been taken to protect the domestic manufacturers from below-cost shipments from China for five years.

 

Reacting to the developmnet, JK Tyre gained as much as 11.7% to Rs 165. TVS Srichakra, MRF, Apollo Tyres, PTL Enterprises and Ceat added anywhere between 1% to 3%.  READ MORE

11:30 AM

Pain ahead for realty, housing finance players

 

The real estate sector is seeing the exposure of certain common malpractices. One model for raising money is for developers to pre-sell unbuilt houses. The deal is, the buyer takes a loan and hands over the amount to the builder. T

 

he builder pays the equated monthly instalment (EMI) until the house is delivered for possession.  This way, the builder gets cheaper capital (home mortgages are at lower rates than commercial real estate loans); the lender can lend more easily (banks have high-risk weights for real estate and sector limits for real estate exposure. READ MORE

11:18 AM

Divi’s Laboratories gains

Divi’s Laboratories moved higher by 6% to Rs 915 on BSE in intra-day trade after the company announced that all the previous observations by US drug regulator regarding Unit-2 of its Visakhapatnam facility have been confirmed as completed and resolved.

 

The stock hit nine-month high and was trading at its highest level since December 23, 2016 on BSE. It outperformed the market by surging 47% in past one month, as compared to 4% rise in the S&P BSE Sensex. Read full report here

11:05 AM

Buzzing Stock

Hindustan Copper rose 0.96% to Rs 63.30 at 09:21 IST on BSE after the company signed MoU with Nalco and Mineral Exploration Corp to form a joint venture for exploration and sale of minerals.

10:48 AM

Larsen & Toubro gains

Larsen & Toubro (L&T) was up by 1.5% to Rs 1,244 on BSE after the company announced that it has won contract valued around Rs 1,700 crore to build crude oil pipeline from Kuwait Oil Company (KOC), Kuwait.

 

“L&T’s hydrocarbon division has bagged a major pipeline contract with a value close to Rs 1,700 crore from Kuwait Oil Company (KOC) for engineering , procurement and construction of new 48” crude transit line (TL-5) from North Kuwait to Ahmadi,” the company said in a press release. READ FULL REPORT HERE

10:31 AM

IPO Note on SBI Life Insurance Company by Geojit Financial Services

 

Rating – Subscribe

Price Range - Rs 685 - Rs 700

 

The untapped opportunity and lower penetration in life insurance provides ample scope for the company to grow its portfolio at a rapid pace. SBI Life had an Embedded Value (EV) of Rs16,538cr as on FY17 with an operating RoEV of 23% (EV is a common valuation measure in the insurance industry which measures potential future profits from existing business). 

 

At upper price band of Rs700, SBI Life is available at P/EV of 4.2x on FY17 EV. We believe SBI Life commands a premium valuation over its peers on account of its leadership position and better financial parameters. 

 

We recommend 'Subscribe' to the issue only with a long term perspective given high valuation.

10:12 AM

JUST IN: Thyssenkrupp & Tata Steel sign MoU for a 50-50 European steel JV which will be named 'Thyssenkrupp Tata Steel'