Nifty sees biggest % fall of 2017, ends at 9,963; Sensex tanks 447 points

All that happened in today's trade

3:50 PM

Anand James, Chief Market Strategist, Geojit Financial Services 

 

With global equity markets in risk-off mode over Korean tensions, the ongoing weakness has gained momentum. Approaching F&O expiry has also added to liquidation pressure. With the FIIs continuing to be net sellers, investors are also fretting on the impact on fiscal deficit targets if government were to go overdrive on with economic revival plans.

3:49 PM

Sectoral trend 

Source: NSE

3:46 PM

Top Sensex losers and gainers 

Source: BSE

3:43 PM

Broader markets underperform 

 

The BSE Midcap and the BSE Smallcap indices tanked nearly 3% each.  

3:40 PM

Markets at close

 

The S&P BSE Sensex ended 447 points down at 31,922, while the broader Nifty50 settled at 9,964, down 157 points.

3:28 PM

Economy booster package should stimulate pvt investment: Ex-RBI chief

 

Former Reserve Bank of India Governor C. Rangarajan on Friday said the package the government is looking at to revive the economy should be partly to raise capital expenditure and look at problems preventing private investments from rising. READ FULL REPORT

3:20 PM

Volatility index 

India VIX rose over 10% to 12.86. 

Source: NSE

3:14 PM

European markets

European shares steadied on Friday amid fresh tensions over North Korea but remained near recent highs ahead of this weekend’s general election in Germany, where conservative Chancellor Angela Merkel is expected to win a fourth term. The pan-European STOXX 600 index fell 0.1%. 

3:04 PM

Debt-laden banks 'concern' for economy: Jaitley

 

India will make efforts to find resources to support debt-laden banks to help them fund economic growth, Finance Minister Arun Jaitley told a meeting of bankers on Friday. Jaitley said stressed bank assets have become a "concern" for the economy. Bad loans have crimped the ability of Indian lenders to offer new credit. READ FULL REPORT

2:50 PM

Buzzing stock 

 

Dena Bank gained nearly 3% to Rs 31.80 on news reports that Vijaya Bank and Dena Bank have expressed interest in a merger and are discussing synergies. READ MORE

2:32 PM

Adhunik Industries hits 52-week low

 

Adhunik Industries hits 52-week low of Rs 83.55, tanked 20% on BSE after the Securities Appellate Tribunal (SAT) directed the market regulator and stock exchanges to reverse their decisions all dated August 7, 2017 qua the appellant forthwith. READ MORE

2:17 PM

Nifty slips below 9,900 mark 

Source: NSE

2:06 PM

Broader markets underperform 

The BSE Midcap and the BSE Smallcap indices underperformed to lose 2% each. 

2:05 PM

Markets check

 

At 2:00 pm, the S&P BSE Sensex was trading at 31,994, down 375 points, while the broader Nifty50 was ruling at 9,987, down 134 points. 

1:41 PM

Kotak Securities on VIP Industries

 

We initiate coverage on VIP Industries (VIP) which is the market leader in the organized luggage industry in India with more than 50% market share, manufacturing and supplying a wide range of hard sided and soft-sided luggage. We expect the company to maintain a strong growth momentum with increasing penetration of luggage bags and back-packs, healthy GDP growth, improving disposable income, increased air and rail travel and with increased use of luggage as a gifting tool. We estimate revenue CAGR of 17% and earnings CAGR of 28% over FY17 to FY20E with improvement in operating margins and return ratios. We believe VIP would be one of the major beneficiaries of healthy GDP growth, rising income level, changing life style and implementation of GST. We initiate coverage on the stock with a TP of Rs 325 valued at 30x FY19 earnings.

1:25 PM

Buzzing Stocks

Shares of ITI and Orchid Pharma rallied up to 19% for the second straight day in an otherwise weak market on the back of positive corporate announcements.

 

ITI has surged 19% to Rs 146, extending its Thursday’s 20% rally on the National Stock Exchange (NSE), after the company announced that it has won Rs 7,000 crore-phase IV tender of Army (Army Static Switched Communication Network-ASCON) for deploying and maintaining its strategic communication network across the country.

 

Orchid Pharma soared 16% to Rs 25, after yesterday’s 20% gain as the company received an establishment inspection report (EIR) from U.S. Food and Drug Administration (US-FDA) on the successful inspection of the active pharmaceutical (API) manufacturing facility in Tamil Nadu. This facility was inspected by USFDA in May 2017. READ MORE

1:11 PM

Nifty's 15-year journey: Financials lord over the index

 

Nifty constituents, over the last 15 years, have undergone a sea change to reflect the underlying changes in the economy. In a recent report, Gautam Duggad and Deven Mistry of Motilal Oswal Research (MOSL) suggest that the weight of financials has seen a secular rise in the benchmark indices, with banking & financial services and insurance (BFSI) now contributing 35.6% (+3.1x in 15 years) weightage in the Nifty-50. 

 

The share of private banks / NBFC in the index, they believe, has gone up led by: a) better earnings performance, coupled with capital raising from the markets (this boosted the free float of Financials), b) sub-par earnings growth witnessed in other sections of the market over the last eight years and c) index moving to a free float basis from June 2009. READ MORE

12:55 PM

S&P says downgraded China as credit growth still too fast

 

China's attempts to reduce risks from its rapid buildup in debt are not working as quickly as expected and credit growth is still too fast, S&P Global Ratings said on Friday, a day after it downgraded the country's sovereign credit rating.

 

"Despite the fact that the government has shown greater resolve to implement the deleveraging policy, we continue to see overall credit in the corporate sector to stay at a 9 percent point", Kim Eng Tan, an S&P senior director of sovereign ratings, said in a conference call to discuss the one-notch downgrade to A+ from AA-.

 

While S&P warned months ago that a cut may be on the cards, it said it decided to make the call after concluding that China's "de-risking" drive that started early this year was having less of an impact on credit growth than initially expected. READ MORE

 

12:43 PM

Rupee at 5-1/2month low

Rupee fell past 65/$, lowest since April 6, in the morning after dollar strengthened post Fed policy review. The Indian currency is currently trading at 64.8/$, down 53  paise

12:33 PM

Sebi allows unified licence for stock and commodity broking

 

The Securities & Exchange Board of India (Sebi) has allowed brokers of stock and commodity exchanges to do both businesses under one entity.

 

This was a major demand of brokers after commodity derivatives regulations came under Sebi, from the erstwhile Forward Markets Commission.

 

The change was notified in July, by amending the Securities Contracts (Regulation) Rules and Sebi (Stock Brokers and Sub-Brokers) (Amendment) Regulations. On Thursday, a circular was issued to give effect to these. READ MORE

12:19 PM

ICICI Pru Balanced Fund: Diversified portfolio, consistent outperformance

 

The fund has managed to consistently outperform the benchmark (CRISIL Balanced Fund - Aggressive Index) and its category (funds ranked under the balanced category in June 2017 CRISIL Mutual Fund Ranking) in all the periods under analysis. 

 

Given the fund's extensive track record, it has experienced various market phases, and has outperformed the benchmark across all phases under analysis and its peers in three phases.

 

An investment of Rs 1,000 in the fund on March 30, 2002 (since inception of the benchmark) would have grown to Rs 13,203 on September 18, 2017 at an annualised rate of 18.14% against the benchmark which would have grown to Rs 6,397 (12.73%).

READ MORE

12:05 PM

ITI hits 52-week high 

 

ITI surged 10.23% to Rs 134.70 on BSE, with the stock extending yesterday's rally after the company was declared as lowest bidder for a large project worth approximately Rs 7000 crore.

11:56 AM

Matrimony.com extends fall after weak listing; down 14% against IPO price

Matrimony.com has dipped 6% to Rs 843, extending its previous day’s 8% decline against its initial public offer (IPO) price of Rs 985 per share on the National Stock Exchange (NSE).

 

The company, the first pure-play Indian matchmaking website, on Thursday had made a quite debut by listing at par against its issue price on NSE and BSE. READ MORE

11:37 AM

Sectoral Trend: All indices were trading in red dragged mainly by metal, realty and bnaking indices

Source: NSE

 

11:24 AM

Market Check

Benchmark indices extended losses in the late morning deals as North Korea tensions escalate. At 11:23 am, the S&P BSE Sensex was trading at 32,083, down 286 points while the broader Nifty50 index was ruling at 10,008, down 113 points.

11:09 AM

Reliance Home Finance locked in upper circuit 

Reliance Home Finance, the demerged home business of Reliance Capital, got locked in 5% upper circuit at Rs 109 on BSE on the first day of its debut in an otherwise weak market. The stock listed at Rs 104 on the BSE.

 

On the National Stock Exchange (NSE), the stock too frozen at maximum upper limit of 5% at Rs 107 after listing at Rs 102. READ MORE

10:54 AM

IPOs of IRCTC, IRFC may be deferred

 

The listing of two public sector undertakings under the Railways Ministry — Indian Railway Finance Corporation (IRFC) and Indian Railway Catering and Tourism Corporation (IRCTC) — may get delayed, as the government now wants to sort out the financial issues facing the companies. 

 

Officials close to the developments said that new railways minister, Piyush Goyal, wanted to resolve these issues in order to get a better valuation before going for listing.

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10:42 AM

IPO Note on Prataap Snacks by Geojit Financial Services

 

Rating – Subscribe

 

Price Range Rs 930 - Rs 938

 

With current utilisation rates, Prataap has the capability to grow organically. Current Indian organised snacks market is estimated at Rs 22000 crore and is estimated to grow at ~14.6% CAGR, over 2016-21E. 

 

Prataap's story should be considered on its new product launch plans, strong, sustained revenue growth and strengthening market position in the last few years. 

 

The company intends to foray into relatively untapped high margin chocolate-based confectionary, the market for which is estimated to grow at 15-18% annually over the next four to five years. We recommend 'Subscribe' to the issue, with a long term perspective.

10:27 AM

Tata Sons' shareholders vote for going private

 

Tata Sons’ shareholders have voted in favour of going private, overruling objections raised by the Mistry family. “All resolutions placed before the annual general meeting were passed with a requisite majority,” a Tata Sons source said. 

 

The new structure, approved by the shareholders during the group’s AGM at Bombay House on Thursday, would mean significant changes. For one, as a private limited firm, the Tata group holding company, headed by N Chandrasekaran, would not need to make as many disclosures as it has made until now. 

 

Secondly, if it defaults in paying dividend for two or more years, its preference shareholders would get voting rights, with Chairman Emeritus Ratan Tata getting a bigger say. READ MORE

N Chandrasekaran, chairman, Tata Sons

10:16 AM

NDTV hits upper circuit

New Delhi Television (NDTV) is locked in upper circuit of 5% at Rs 53.10 on the Bombay Stock Exchange (BSE) in otherwise weak market, after media reports suggested that the SpiceJet’s co-founder Ajay Singh has picked up majority holding in the news channel. READ MORE