Sensex down 67 points, Nifty ends above 10,100 ahead of RBI policy outcome

All that happened in today's trade

3:53 PM

Vinod Nair, Head of Research, Geojit Financial Services

 

After a subdued trade through the day, the market reversed from day’s low led by banking stocks. The recent correction in PSU banks provides an opportunity for investors to accumulate as the long term prospects remains strong owing to healthy recapitalisation. On the macro front, upcoming RBI policy and Gujarat state election will be an influential factor for investors which is steering the market to consolidate.

3:51 PM

Nifty PSU Bank leading sectoral gainer ahead of RBI policy 

Source: NSE

3:49 PM

Sensex heatmap at close

Source: BSE

3:41 PM

Markets at close

 

The S&P BSE Sensex ended at 32,802, down 67 points, while the broader Nifty50 settled at 10,118, down 9 points. 

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,802.44	-67.28	-0.20
S&P BSE SENSEX 50	10,559.16	-14.57	-0.14
S&P BSE SENSEX Next 50	35,116.63	+83.31	+0.24
S&P BSE 100	10,591.10	-8.13	-0.08
S&P BSE Bharat 22 Index	3,660.60	-14.65	-0.40

Source: BSE

3:28 PM

Sugar shares in focus

 

Shares of sugar companies have moved higher by up to 10% on the BSE on back of heavy volumes.Dwarikesh Sugar Industries, Triveni Engineering Industries, Ugar Sugar Mills, Uttam Sugar Mills, Dhampur Sugar, Simbhaoli Sugar and Balrampur Chini Mills were up more than 2%. On comparison, the S&P BSE Sensex was down 0.15% at 32,828 points at 03:09 PM. READ MORE

3:06 PM

Markets check

 

At 3:05 pm, the S&P BSE Sensex was trading at 32,814, down 55 points, while the broader Nifty50 was ruling at 10,119, down 8 points. 

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,809.85	-59.87	-0.18
S&P BSE SENSEX 50	10,563.57	-10.16	-0.10
S&P BSE SENSEX Next 50	35,086.42	+53.10	+0.15
S&P BSE 100	10,593.34	-5.89	-0.06
S&P BSE Bharat 22 Index	3,660.82	-14.43	-0.39

Source: BSE

2:50 PM

Reliance Securities on ​​KEC International

 

​​KEC International (KEC) has delivered a strong performance in 2QFY18. Despite higher commodity prices, KEC’s overall EBITDA margin expanded by 139bps YoY to 10.1% in 2QFY18 owing to absence of low-margin legacy orders in Water, Railways and Power Systems segments and execution of recently bagged better-margin orders by SAE Towers. Its net profit rising by 42% YoY to Rs894mn led by higher margin and lower interest cost.

 

With fresh orders worth Rs 57.5 billion, KEC’s order book stood at Rs 140 billion as of FY18 YTD (+14% YoY). We expect the strong order intake traction to continue, going forward led by higher T&D spending by SEBs, improved Railways ordering and recovery in overseas markets i.e. Saudi, SAARC & Africa.

 

We expect KEC’s earnings to witness 25.2% CAGR over FY16-19E on strong order book, improving margin profile and healthy outlook in T&D and other emerging business segments.

 

We continue to remain positive on the fundamentals of KEC with a Target Price of Rs 372.

2:36 PM

Level the playing field

 

The Bombay Stock Exchange’s (BSE) suggestion that benefits related to the long-term capital gains (LTCG) tax on equity investments should be removed to curb market manipulation via the exchange platform deserves serious thought.

 

Though this demand has emerged from several quarters in the run-up to some earlier Budgets as well, the government has been ignoring it on the grounds that a differential tax treatment is required in order to encourage long-term investments instead of short-term trading in the capital market. READ MORE

2:22 PM

Top five Nifty losers in afternoon trade 

Source: NSE

2:02 PM

Buzzing stock

 

Ramky Infrastructure hit a new high of Rs 258, up 8% on the BSE in otherwise weak market on back of heavy volumes. The trading volumes on the counter almost doubled with a combined 1.36 million shares changed hands on the BSE and NSE till 01:19 PM.

 

Since November 8, post July-September (Q2FY18) quarter results, the stock of construction & engineering company surged 50% from Rs 172, after it reported net profit of Rs 3.3 crore against a loss of Rs 41.5 crore in the same quarter previous year. Operational income of the company grew 46% to Rs 324 crore from Rs 222 crore in the corresponding quarter of previous fiscal. READ MORE

1:47 PM

Force Motors hits 52-week low

 

Force Motors hits 52-week low of Rs 3,164, down 3% on the BSE in intra-day trade, after the company recorded sales growth of 4% at 1,687 units in the month of November 2017. The car & utilities vehicles maker had sold 1,622 units in November 2016. It had recorded total sales of 2,539 units in October 2017. READ MORE

1:30 PM

Markets check

 

At 1:30 pm, the S&P BSE Sensex was trading at 32,719, down 150 points, while the broader Nifty50 was ruling at 10,084, down 43 points. 

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,733.62	-136.10	-0.41
S&P BSE SENSEX 50	10,526.96	-46.77	-0.44
S&P BSE SENSEX Next 50	34,887.49	-145.83	-0.42
S&P BSE 100	10,552.82	-46.41	-0.44
S&P BSE Bharat 22 Index	3,642.34	-32.91	-0.90

Source: BSE

1:01 PM

RBI policy: Current inflationary environment does not allow for a rate cut

 

RBI had maintained status quo on policy rates in its last review. It cited risks due to higher inflation, largely emanating from rising crude oil prices, uneven distribution of monsoon and amplified global geopolitical uncertainty. Other factors included increased volatility in financial markets as the US Fed unwound its balance sheet and domestic fiscal challenges.

 

Not much has changed since.

 

The upcoming RBI Monetary Policy Committee (MPC) bi-monthly meeting on 6th December will assess some of these factors before settling on new rates and direction. But any real change can safely be ruled out given the unchanged background.  However, it’s not totally an open and shut case and there are some points worth considering. READ MORE

12:44 PM

Interview of the day

 

Benign liquidity situation to support markets: Kalpen Parekh

 

A benign liquidity situation along with a pick-up in earnings, both globally and locally, will continue to support markets despite above-average valuations, says Kalpen Parekh, president, DSP BlackRock Mutual Fund.

 

Parekh says that investors should temper their return expectations as interest rates have fallen over the past three years and valuations have stretched considerably. Read full interview here

12:30 PM

Mastercard to repurchase up to $4 billion of its shares

 

Payment processor Mastercard Inc said on Monday it would buy back up to $4 billion of its class A shares.

 

The new share repurchase program will be effective at the completion of the company's previously announced $4 billion share repurchase program, Mastercard said.

 

Under the previously announced buyback, the company has about $1.5 billion remaining, the statement added.

 

The company said it also increased its quarterly cash dividend to 25 cents per share, a 14 percent increase over the previous dividend of 22 cents a share.

12:16 PM

Balaji Amines advances after project gets mega project status from govt

 

Balaji Amines rose 1.34% to Rs 641.05 at 9:25 IST on BSE after the company said that the Department of Industries, Energy and Labour, Mantralya, Mumbai has conferred mega project status to its expansion project.

 

The announcement was made after market hours yesterday, 4 December 2017. The stock had jumped 6.27% to Rs 632.60 yesterday, 4 December 2017, ahead of the announcement. READ MORE

11:58 AM

Sectoral Trend

Source: NSE

11:45 AM

Services PMI down in Nov as GST subdues domestic, foreign demand

 

Activity in India's dominant services industry shrank in November as rising prices, driven up in part by the new national sales tax, took a toll on both foreign and domestic demand, a business survey showed on Tuesday.

 

November's Nikkei/IHS Markit Services Purchasing Managers' Index fell to 48.5 - its lowest since August - from 51.7 in October, well below the 50 mark that separates expansion from contraction.

 

After initial confusion among firms over the pricing of their products, firms are now better adjusted to the Goods and Services Tax (GST) and are gradually passing higher input costs to end-consumers. READ MORE

11:30 AM

Top Sensex gainers and losers

Source: BSE

11:16 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,773.42	-96.30	-0.29
S&P BSE SENSEX 50	10,538.84	-34.89	-0.33
S&P BSE SENSEX Next 50	34,944.62	-88.70	-0.25
S&P BSE 100	10,565.58	-33.65	-0.32
S&P BSE Bharat 22 Index	3,645.72	-29.53	-0.80

10:56 AM

RBI builds $31-bn forwards position as dollar tide rises

 

The Reserve Bank of India (RBI) has built up a $31-billion position in rupee-dollar forwards as a continuous foreign fund inflow has necessitated active intervention by the central bank in the spot market.

 

Forwards contracts are designed to buy foreign currencies at pre-agreed prices. A buyer has to pay a fee, the forward premium, for the right to buy at that price.

 

Economists and currency dealers said the RBI action could also be a form of insurance against an outflow of dollars as central banks around the world had begun normalising their easy money policies. In August and September, the markets witnessed outflows from the equity markets, highlighting the need to remain cautious on funds flow. READ MORE

10:45 AM

Shalby IPO kicks off today; should you subscribe?

 

Shalby, an operator of multi-specialty hospitals chain kicked off its initial public offering (IPO) on Tuesday in a price band of Rs 245-248 per share to raise Rs 504 crore. The issue will close on Thursday. 

 

The offer comprises a fresh issue of equity shares aggregating up to Rs 480 crore and an offer for sale of up to 10,00,000 equity shares by the promoter Vikram Shah Burman, which at the upper end of the price band will fetch Rs 24.8 crore.

 

Click here to find what brokerages recommend on the issue

10:30 AM

Top Sectoral Loser: Nifty Metal

Source: NSE

10:22 AM

Shree Pushkar gains on capacity expansion

 

Shree Pushkar Chemicals & Fertilisers was up 2.84% to Rs 278.90 on BSE after the company said an additional dye capacity of 3,000 MTA has been added to its plant.

10:17 AM

Only sectoral index in green: Nifty IT

Source: NSE

10:07 AM

Avoid timing the market with lump-sum investments

 

IDFC Mutual Fund is the latest fund house to join the ranks of those which have restricted heavy lump-sum investments in their funds. It has limited lump-sum investment in IDFC Focused Equity Fund to Rs 2 lakh a day. 

 

Similar restrictions have been imposed in the recent past in other funds: DSP BlackRock Micro Cap, Edelweiss Tax Advantage, L&T Emerging Businesses, and SBI Small and Midcap Fund. Investors should heed the message in these measures being taken by fund houses and avoid lump-sum investments at a time when valuations are high.  READ MORE

10:01 AM

Ruias want to pay up, bid for Essar Steel

 

The Essar Group is planning to pay its dues to lenders so that it can take part in the bidding process for its steel plant in Hazira, Gujarat. Tata Steel, ArcelorMittal and others are reportedly keen to acquire it.  

 

The group has sought clarification from lenders on the overdue interest so that it can pay it and submit its bid by December-end, said a lender.  Essar Steel is among the 12 companies that were sent to the National Company Law Tribunal (NCLT) by the RBI for resolution under the Insolvency and Bankruptcy Code (IBC). READ MORE

9:44 AM

NSE may refile IPO papers after getting clarity on algo-trading case

 

Leading bourse National Stock Exchange (NSE) may have to file fresh draft papers with markets regulator Sebi to float an initial public offering after getting clarity on the co-location matter.

 

However, the current preliminary IPO papers, which were filed with Sebi in December last year, will remain open, the exchange said.

 

The IPO is expected to be one of the biggest in recent times, with an estimated size of over Rs 10,000 crore, merchant banking sources said. READ MORE

9:31 AM

Bitcoin bigger than Buffett, Boeing, New Zealand's economy

Bitcoin’s extraordinary price surge means its market capitalisation now exceeds the annual output of whole economies, and the estimated worth of some of the world’s top billionaires.

 

With debate over its bubble status still raging, the flagship cryptocurrency continued its march higher on Monday, solidifying above $11,000 and bringing its climb this year to more than 1,000 per cent. With market tracker Coinmarketcap.com putting the total value of all bitcoins in circulation at $190 billion, it’s come a long way from August, when one coin could buy you a hefty supply of avocados.

 

Click here for five things that have been eclipsed by bitcoin in terms of market capitalisation:

9:24 AM

Sectoral Trend

Source: NSE