Markets end at five-week high; Sensex up 276 pts, Nifty settles at 10,093

All that happened in Tuesday's trade

4:18 PM

Vinod Nair, Head of Research, Geojit Financial Services 

 

Market has come out of the consolidation phase on account of continued uptrend in global market. Buying in metal and auto stocks with signS of improvement in demand added impetus to the market and closed near their fresh highs. Additionally, domestic macro data IIP & CPI inflation to be released today are expected to improve to 1.7% from -0.1% June and 3.2% vs 2.4% July, respectively.

4:17 PM

Mutual funds' flow into equities at two-year high

 

Till September 7 2017, MFs have pumped in a net Rs 73,428 crore in equities, surpassing their previous high recorded two years ago. During the entire calendar year 2015 (CY15), they had made a net investment of Rs 72,199 crore in equities. In CY15, MFs reported net inflow of Rs 48,170 crore. READ FULL REPORT

3:51 PM

Mahanagar Gas zooms 128% since listing

Since July 1, 2016, the stock appreciated by 128% from Rs 520, against 18% rise in the Nifty 50 index. It zoomed 181% against its initial public offer (IPO) price of Rs 421 per share. READ FULL REPORT 

3:47 PM

Sensex heatmap at close 

Source: BSE

3:39 PM

Broader markets hit fresh highs

Broader markets outperformed to hit their fresh closing highs. The BSE Midcap and the BSE Smallcap indices added 1% each. 

3:37 PM

Markets at close

 

The Nifty50 index witnessed its second-best closing. The index settled at 10,093, up 87 points, while the Sensex closed at 32,158, up 276 points. 

3:27 PM

Equirus on DCB Bank

 

Given that 86% of DCB’s mortgage borrowers are self-employed, it could see some increase in mortgage NPLs in 2QFY18 due to the GST impact. However, we believe eventually, loss given defaults would be contained. Moreover, DCB has floating provisions of ~Rs 440 million. We have an ADD rating with an ERoE-based TP of Rs 210 corresponding to a 2.5x Sep’18 ABV of Rs 86.

3:24 PM

Top five gainers on Nifty as index nears 10,100

Source: NSE

3:19 PM

Why you should bank on gold in these uncertain times

 

Gold has rallied 3.48 per cent over the past one month and is now trading above the Rs 30,000-mark in the Indian market. In the international market too, it has breached the $1,300 per ounce mark — a level it had been unable to cross for about 10 months. READ FULL REPORT

3:15 PM

European markets

 

European bourses continued their relief rally, trading higher on Tuesday after stock markets in Asia and in the United States hit record highs as worries about Hurricane Irma and North Korea’s nuclear standoff eased.

 

All major trading centers and most sectors traded in positive territory as the The pan-European STOXX 600 index jumped to a one-month peak, although some investors questioned how sustainable current markets levels are. France's CAC 40 was up 0.4%, while Britain's FTSE 100 bucked the trend to lose 0.1%.

3:12 PM

Buzzing stock

 

NBCC (India) rose over 3% to Rs 214 on BSE after the company said it was awarded two contracts in the capacity of project management consultant.

3:08 PM

Markets extend gains

 

At 3:07 am, the Sensex was trading at 32,167, up 285 points, while the broader Nifty50 was ruling at 10,096, up 90 points.

3:00 PM

Volatility index

India VIX eased nearly 6% to 11.

Source: NSE

2:49 PM

Divi's Laboratories leads gainers in 'A' group

 

Divi's Laboratories jumped over 9% to Rs 786. The stock topped the gainers in the BSE's 'A' group. On the BSE, 5.71 lakh shares were traded on the counter so far as against the average daily volumes of 99,000 shares in the past two weeks.

2:36 PM

Reliance Securities on YES Bank

 

We expect YES Bank will sustain continued improvement in operating metrics led by dwindling headwinds on asset quality front and improving balance sheet growth, especially from retail segment. Hence, we maintain our BUY recommendation on the stock with a target price of Rs 2,051, based on 3.1x FY19E (earlier 1.9x) adjusted book value.

2:20 PM

CD Equisearch on Skipper 

 

The stock currently trades at 17.1x FY18e EPS of Rs 12.18 and 13.5x FY19e EPS of Rs 15.43. Notwithstanding near term stress in its polymer products business, regional capacities mostly set up on asset light model and strategic tie ups with Sekisui of Japan (for CPVC compound) and WAVIN of Netherlands for advanced plumbing solutions are not worthy of sidestepping. Sustenance of its engineering products business would rest on increased PGCIL investments in 13th Plan - also in North East and emerging T&D opportunities in South East Asia, Latin America and Africa.

 

We recommend buying the stock with a target of Rs 262 based on 17x FY19e earnings (peg ratio: 0.9 on 19% average earnings growth).

2:07 PM

Buzzing stock

Tata Coffee hit a record high of Rs 175, up 17%, extending yesterday’s nearly 4% gain on the National Stock Exchange (NSE), after Equity Intelligence bought one million shares of Tata Group Company through open market. READ FULL STORY

1:44 PM

Top five losers on Nifty in an otherwise positive market 

Source: NSE

1:36 PM

Markets check 

At 1:30 pm, the Sensex was trading at 32,055, up 173 points, while the broader Nifty50 was ruling at 10,057, up 51 points. 

1:18 PM

Buzzing stock

 

Force Motors has moved higher by 5% to Rs 4,300 on BSE in noon deals after the company said it has entered into a non-binding term sheet with Rolls-Royce Power Systems AG (R-RPS) to form an Indian Joint Venture company for producing engines (for power generation and rail application), and complete power generation systems, including associated spare parts for Indian and global markets. READ MORE

1:04 PM

A new ITC is in the making, says Sanjiv Puri

Once heavily dependent on the cigarettes segment, corporate behemoth ITC has diversified over the past two decades into many businesses that now generates 58 per cent of its revenue. However, to stay future ready and hedge against volatility, it is now looking at newer segments which it expects would bring in higher growth. 

 

Read full interview of Sanjiv Puri, CEO, ITC here

Sanjiv Puri, CEO, ITC

12:47 PM

Tata Sons to raise stake in TGBL, Tata Chemicals for Rs 1,458 cr

 

Tata Sons, the promoter of major Tata group companies, will hike its shareholding in Tata Global Beverages and Tata Chemicals by up to 6.84% and 4.39% respectively for a total estimated value of Rs 1,458 crore.

 

Tata Sons will acquire up to 4.31 crore shares or 6.84% stake in Tata Global Beverages Ltd (TGBL) from Tata Chemicals as a part of restructuring of its investment portfolio, TGBL said in a regulatory filing.

 

Tata Chemicals said Tata Sons will acquire up to 1.11 crore shares or 4.39% stake in the company from Tata Global Beverages Ltd (TGBL).

12:33 PM

BUZZING STOCK

BPCL gained over 3% to Rs 529 on BSE after the company said that the Government of India conferred BPCL with Maharatna status. The stock had hit a high of Rs 529 and a low of Rs 512.55 so far during the day. 

12:16 PM

Indian banks to face $65-bn capital shortage by FY19, cautions Fitch

 

Flagging the negative effect of a weak capital base, ratings agency Fitch on Tuesday said Indian banks might require around $65 billion of additional capital to meet the new Basel-III capital standards by March 2019 (financial year 2018-19).

 

The ratings agency has reduced its capital requirement estimate to $65 billion from its earlier assessment of $90 billion.

 

Capital needs have fallen from its previous estimate of $90 billion largely as a result of asset rationalisation and weaker-than-expected loan growth, Fitch said. READ MORE

 

12:00 PM

IndusInd Bank falls

IndusInd Bank fell more than 2% after hitting a record high of Rs 1,818 in early trade, dragged by profit booking.

 

The stock rallied 5.6% in previous session after the company entered into exclusivity agreement to evaluate with microfinance company Bharat Financial Inclusion for proposed potential strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure.

 

11:44 AM

Market Check

Equity benchmarks extended gains in morning trade, with the Nifty reclaiming 10,050 level on support from pharma, realty, FMCG and PSU banks stocks.

 

The S&P BSE Sensex was trading at 32,057 up 175 points while the broader Nifty50 index was ruling at 10,055, up 49 points.

 

The BSE Midcap and Smallcap indices also extended gains to 0.8% each. About 1,327 shares advanced against 840 declining shares on the BSE.

11:27 AM

HDFC Bank hits new high; surpasses TCS in market cap ranking

 

HDFC Bank hit a new high of Rs 1,840 on BSE on Tuesday in intra-day trade, surpassing information technology (IT) giant Tata Consultancy Services (TCS) in market capitalisation (market-cap) ranking.

 

HDFC Bank with market-cap of Rs 473,944 crore came in at number two position in overall ranking ahead of TCS which had market-cap of Rs 470,934 crore at 10:24 am; the BSE data showed. 

 

Analysts at JP Morgan are overweight on the HDFC Bank, as they see the bank as the best-quality play in the current environment, given what they believe are its stable margins, healthy asset quality, consistent performance and superior management. READ MORE

HDFC Bank branch office in Mumbai

11:13 AM

Porinju buys stocks

Shares of Liberty Shoes and Tata Coffee touched 52-week high, gaining 16% intraday as Equity Intelligence of Porinju Veliyath has bought stake in the companies.

 

Equity Intelligence India [P M S] bought 3,21,308 shares of Liberty Shoes at Rs 235.48 and bought 10,00,000 shares of Tata Coffee at Rs 150 on the NSE on Monday.

10:59 AM

Earnings Impact

Speciality Restaurants lost 5.83% to Rs 116.40 on BSE after the company reported net loss of Rs 15.82 crore in Q1 June 2017, higher than net loss of Rs 5.60 crore in Q1 June 2016.

10:42 AM

IndusInd-BFIL merger a win-win deal

After months of speculation, IndusInd Bank and Bharat Financial Inclusion (BFIL) ended the guessing game on Monday. The parties have entered into an exclusivity agreement for a potential amalgamation or any other suitable structure. While pricing or valuation-related details aren’t known, Romesh Sobti, MD & CEO, IndusInd Bank, states the transaction would be a share-swap deal. 

READ FULL REPORT HERE