Sensex ends flat, Nifty settles below 10,100; Wipro top loser, down 4%

All that happened in Thursday's trade

4:04 PM

Anand James, Chief Market Strategist, Geojit Financial Services 

 

Unsteady movements in the oil marketing company stocks, with uncertainties prevailing over the fuel prices kept markets volatile early in the day, but strength in midcaps kept market sentiments buoyant. The late surge in PSUs is suggestive that investors are expectant of the speeding process of NPA resolution and anticipating news on the consolidation of PSU banks, sooner than later.

3:47 PM

Sectoral trend 

Source: NSE

3:46 PM

Nikhil Kamath, Co-Founder and Head of Trading, Zerodha

 

The indices continued to scale up, now within touching distance of the all time highs yet again. An overall bull trend has been firmly established and is definitely in play, in the short term there could be fluctuations based on the inherent froth that has crept into the system. Everybody seems to be calling for higher levels and the overall sentiment is definitely bullish. In the near term we expect some volatility taking the markets lower by 3-5%, post which the bull trend could resume again.

3:44 PM

Sensex heatmap at close 

Source: BSE

3:41 PM

Market breadth 

The breadth, indicating the overall health of the market, remained neutral. On BSE, 1,311 shares rose and 1,304 shares declined. A total of 152 shares were unchanged. 

3:39 PM

Broader markets outperform 

Broader markets outperformed with the BSE Midcap and the BSE Smallcap indices adding 0.6% each. 

3:37 PM

Markets at close

The Sensex ended at 32,241, up 55 points, while the broader Nifty50 closed at 10,086, up 7 points.

3:24 PM

Centrum on Orient Refractories 

 

We maintain Buy on Orient Refractories (ORL), with an unchanged target price of Rs 170 as the growth story remains on track with i) steady revenue growth led by improving domestic demand, and ii) strong traction in exports sales with approval of increased transaction limits with parent, RHI. Q1 performance was a mixed bag with revenue growth above expectations but provisioning for steel accounts keeping EBITDA/PAT supressed. 

 

We remain structurally positive on ORL and believe that the tremendous scope for brownfield expansion, as well as low capital and operational costs, MNC parentage and strong return ratios make it a compelling long term bet.

3:20 PM

Oil prices

Oil prices steadied, holding on to most of their recent gains after forecasts for stronger oil demand by the International Energy Agency (IEA).

 

Benchmark Brent crude was down 10 cents at $55.06 a barrel after rising 89 cents or 1.6% on Wednesday. US light crude was unchanged at $49.30 after gaining 2.2% in the previous session.

3:17 PM

European markets

 

European stock markets inched lower on Thursday, weighed down by weaker miners, while shares in German reinsurer Munich shrugged off a profit warning.

 

The pan-European STOXX 600 index was down 0.2% with the basic resources sector taking most points off as investors digested a decline in industrial metals and disappointing data from top consumer China.

 

Among other regional benchmarks, Britain's FTSE fell 0.1% ahead of the results of Bank of England policy meeting later in the day, while Germany's DAX was down 0.3%.

3:12 PM

Volatility index

 

India VIX declined for the sixth straight session.

Source: NSE

3:07 PM

Sebi orders forensic audit of 3 firms

 

Markets regulator Sebi has ordered forensic audit of three firms -- Trinity Tradelink, Info-Drive Software and Edynamics Solutions -- which figure among 331 suspected shell companies that are under its scanner. 

 

These are in addition to Sebi ordering forensic of four other such firms -- IRIS Mediaworks, Hit Kit Global Solutions, Kavit Industries and GV Films. READ DETAILS HERE

3:01 PM

Markets check

At 3:00 pm, the Sensex was trading at 32,248, up 62 points, while the broader Nifty50 was ruling at 10,089, up 10 points. 

2:46 PM

Buzzing stock

Private lender Axis Bank rose over 4% to Rs 520, and was the top percentage gainer on the Sensex and Nifty, after brokerage firm Deutsche Bank upgraded the stock to “buy” and raised its target price to Rs 600.

 

2:29 PM

Recapitalisation a major issue: UCO bank chief

 

Recapitalisation is a major issue for state-run banks owing to the massive non-performing assets (NPAs), or bad loans, accumulated by them and they are now exploring various sources of raising capital, according to a leading public sector bank (PSB). READ FULL STORY

2:15 PM

Kotak Institutional Equities on OMCs

 

The petroleum minister’s clarification on not interfering with auto fuels pricing mechanism on an ad-hoc basis may provide some relief, post a media flash suggesting the possibility of OMCs absorbing higher crude prices. However, the government’s intent to maintain higher excise duties despite a sharp jump in fuel prices over the past few months, may rule out any possibility of expansion in marketing margins even in a reasonable crude price and exchange rate environment and thus, defy the thesis of higher multiples for marketing profits. We remain negative on OMCs.

1:57 PM

Buzzing stock 

Reliance Communications fell over 2% to Rs 21, a day after the Indian arm of Ericsson filed a petition seeking to drag the debt-laden telecom firm into insolvency due to unpaid dues. CLICK HERE FOR DETAILS 

1:46 PM

Buzzing stock 

Himachal Futuristic Communications (HFCL) hit an over nine-year high of Rs 30.10, up 8% on the National Stock Exchange (NSE) in intra-day trade, after the company said it was no longer under the Corporate Debt Restructuring (CDR) mechanism. The stock was trading at its highest level since February, 2008. READ MORE

1:30 PM

Broader markets outperform

The BSE Midcap and the BSE Smallcap indices gained 0.4% and 0.6%, respectively. 

1:22 PM

Top five losers on Nifty in noon deals 

Source: NSE

1:06 PM

Market Check

The benchmark indices pared morning gains to trun flat in the afternoon deals oil & gas, realty and IT sector indices.

At 1:06 pm, the S&P BSE index was trading at 32,198, up 12 points while the broader Nifty50 index was ruling at 10,077, down 2 points.

12:54 PM

August wholesale inflation hits four-month high at 3.2%

 

Wholesale price inflation has risen to 3.24% from a year ago, its fastest pace in four months, driven by higher prices of food and fuel products, data showed.

 

The rise compares with a 3% increase forecast by economists in a Reuters poll and a provisional 1.88% rise in July.

 

Wholesale food prices in August rose 4.41% on year, compared with a 2.12% rise a month earlier, government data showed on Thursday.

12:38 PM

Thermax gains on order win

Thermax was up 5% to Rs 943 on BSE in intra-day trade after the company said that the Thermax Group has won a contract worth $43 million (Rs 276 crore approximately) from a leading cement company in the UAE for a turnkey captive power plant.

 

“This is the first engineering, procurement and constructions (EPC) order that Thermax will be executing for a GCC (Gulf Co-operation Council) country. We intend to expand our footprint in this region where we have been providing business solutions,” said MS Unnikrishnan, Thermax MD and CEO. READ MORE

12:22 PM

ALERT: 10-year bond yield at 3-month high on higg WPI Inflation

12:21 PM

WPI inflation

August WPI inflation at 3.24% vs 1.88% in July

12:19 PM

Godrej Property gains
 

Godrej Properties rose 2.93% on BSE after the company announced that it has entered into a joint venture with Nirmal Ventures for developing a residential project located on the Lal Bahadur Shastri Marg, Thane West.

12:06 PM

Emerging markets to double returns in two years, says BofA-ML

 

Even as Asian markets are ruling at their decade high levels, there is enough room for them to deliver over 100% returns in the next two years, believes foreign brokerage BofA-ML, advising investors to raise exposure, if they have not already.

 

"EM equities are already up 60% since January 2016 in this bull market, and we think a potential doubling is likely in the next two years to mirror the trajectory of prior bull markets," said BofA-ML. 

 

If history is a guide, EM equities rise 230% on average, in bull markets that last about 42 months, at three times the pace of the rise in the S&P500 in the same period, the brokerage pointed out.  READ MORE

11:51 AM

BUZZING STOCK

Divi’s Laboratories was up 4% in intra-day trade, extending its 19% rally of the last four trading sessions on media reports that the company has re-invited US Food and Drug Administration (USFDA) for reinspection of Unit-II, which comprises of 60-65% of total sales for the company.

11:39 AM

Kotak Securities on economy

 

Inflation continues to inch up. CPI inflation continued to move up from its trough and is set to hit the 4% mark in November. Vegetable prices continued increasing sequentially in line with the seasonal effect. Core inflation inched up on the back of housing (7CPC HRA effect). We expect the upward trend to continue over the next few months along with some sequential seasonal softening of food prices in 3QFY18. We maintain our call that the RBI would pause for the rest of FY2018

11:38 AM

Centrum on Orient Refractories

 

We maintain Buy on Orient Refractories (ORL), with an unchanged target price of Rs 170 as the growth story remains on track with i) steady revenue growth led by improving domestic demand, and ii) strong traction in exports sales with approval of increased transaction limits with parent, RHI. 

 

Q1 performance was a mixed bag with revenue growth above expectations but provisioning for steel accounts keeping EBITDA/PAT supressed. We remain structurally positive on ORL and believe that the tremendous scope for brownfield expansion, as well as low capital and operational costs, MNC parentage and strong return ratios make it a compelling long term bet.