Markets extend losses for 6th session in a row; Nifty settles below 9,900

All that happened in today's trade

4:05 PM

Anand James, Chief Market Strategist, Geojit Financial Services

 

Domestic indices pared the initial losses stimulated by a pull back in the banking stocks. Strong put writing was also seen at the 9800 strike indicating that traders may have deemed the downside a bit overdone, setting the stage for short covering ahead of the F&O expiry. GST council meeting scheduled in the first week of October may also enthuse the investors now, while the sharp weakness in rupee shall also give reprieve to exporters.

3:57 PM

Nifty Realty leading sectoral gainer 

All but two stocks were trading in red.  

Source: NSE

3:45 PM

Sensex heatmap at close

3:38 PM

Broader markets outperform 

 

Broader markets bucked the weak trend with the BSE Smallcap and the BSE Midcap indices gaining 1% and 0.4%, respectively.

3:37 PM

Markets at close

The S&P BSE Sensex settled the day at 31,599, down 26 points, while the broader Nifty50 was ruling at 9,871, down 1 point. 

3:26 PM

Volatility index

India VIX eases over 3% to 13. 

Source: NSE

3:15 PM

Nifty Metal index recovers after five-session losing streak 

Source: NSE

3:06 PM

Buzzing stocks 

 

ITI, Indiabulls Ventures, Graphite India, Signet Industries, Deep Industries, MIRC Electronics, HEG and OM Metals Infraprojects are among the 39 stocks from the S&P BSE Smallcap index that have recovered more than 10% after a bounce back in equity market in late noon trade. READ MORE

 

2:59 PM

Top five losers on Nifty

Source: NSE

2:45 PM

D-Mart market-cap crosses Rs 75,000 crore

 

Avenue Supermarts, which owns and operates D-Mart retail chain, have joined the league of companies with market capitalization(m-cap) of more than Rs 75,000 crore after more than 15% rally in shares on Tuesday. READ MORE

2:26 PM

Broader markets outperform 

 

The BSE Smallcap index gained over 15, while the BSE Midcap index was up 0.7% in the noon deals. 

2:24 PM

Mrakets check 

At 2:15 pm, the Sensex was trading at 31,618, down 8 points, while the broader Nifty50 was ruling at 9,871, down 0.75 point. 

2:07 PM

Why the rupee could touch 66 in the next four months

 

To conclude, the risks to USD/INR stemming from global and domestic factors are skewed to the up side. While 64.35 would be a key support on the down side, levels of 65.50 and 66.00 could be seen in 4-6 months time frame. READ FULL ANALYSIS

1:48 PM

D-Mart hits new high

 

Shares of Avenue Supermarts, which owns and operates D-Mart retail chain, on Tuesday, hit a new high of Rs 1,218, up 18% on the National Stock Exchange (NSE) in intra-day trade in an otherwise weak market on heavy volumes. READ MORE

1:33 PM

BSE-500 underperforms Sensex in last 5 sessions

 

The selling spree continued on Dalal Street amid weak domestic and global cues. As the S&P BSE Sensex and the Nifty50 shed over 2% in the last five sessions, there were at least 45 stocks on the BSE-500, which tanked over 10% during the same period.  CLICK HERE FOR FULL REPORT

1:18 PM

Europe Check

European stocks opened lower on rising tensions between North Korea and the United States. The pan-European Stoxx 600 was 0.04% lower with most of the sectors moving in negative ground.

12:59 PM

HDFC Securities on ITC

 

ITC, number 4 company in terms of market capitalisation in India, has suffered at the hands of regulatory changes wherein a prior lenient GST rate under the new taxation regime was followed by an increase in the tax incidence for cigarettes. Cigarettes being the major source of revenue, the company’s stock suffered.

However, we feel that the market has over- reacted and that other segments of the company, specifically the foods division under FMCG segment, the agri business and the hotels business have good growth potential and may drive up the profitability due to the efforts taken by company.

 

With major capex in the hotels, foods business, reviving demand in the consumer segment, newer products in the agri-business, and long term positive view on the cigarettes consumption in India, we expect company to drive up its profitability and get re-rated.

 

We feel investors could buy the stock at the CMP and add on dips to Rs.247-251 band (~22.0x Sept 19E EPS) for sequential targets of Rs. 300 (26.5x Sept 19E EPS) and Rs. 322 (28.5x Sept 19E EPS) over the next 3-4 quarters.

12:45 PM

Metals shine

Metal index gained nearly 2% in today's trade with all except 2 constituents trading in green

Source: NSE

12:25 PM

Rupee check

The Indian rupee fell further since morning, down sharply by 24 paise at Rs 65.35 against the US dolllar, from previous close. The heavy demand for the American currency from importers and banks caused decline in rupee.

12:13 PM

Shoppers Stop slips

 

Shoppers Stop lost 3.3% to Rs 483 on BSE, with the stock sliding on profit booking after Monday's rally triggered by the company's nod to sell 5% of shares to Amazon unit.

11:53 AM

Market Check

The benchmark indices extended losses after opening flat tracking Asian peers and global cues. At 11:53 am, the S&P BSE Sensex was trading at 31,467, down 159 points while the broader Nifty50 index was ruling at 9,821, down 50 points.

11:37 AM

Prataap Snacks IPO

The Rs 482-crore initial public offering of Prataap Snacks has been oversubscribed 2.8 times, as per latest data available on exchanges.

 

The issue has received bids for 1.01 crore equity shares against IPO size of 36 lakh shares, excluding anchor investors' portion.

11:29 AM

Reliance Securities on Coal India

Buy at Target Price of Rs 301

 

CIL’s current stock price has discounted decline in e-auction coal prices. Improvement in the policy environment and infrastructure spend coupled with manufacturing activities will aid in reviving the demand environment for the power sector thereby higher coal demand.

 

We believe that likely improvement in off-take from 2HFY18E onwards and improving e-auction realisations augur well for CIL. Further, as full impact of grade slippage seems to be over in FY17, we believe that the FSA realisations will recover, going forward.

 

In our view, CIL is a good defensive play with estimated dividend of Rs16/share in FY18, which translates into dividend yield of ~6.2% at CMP.

11:19 AM

Power stocks trade mixed after Modi launches Saubhagya scheme

 

Shares of power companies were trading mixed after the Prime Minister, on Monday, unveiled a flagship programme  called “Saubhagya — Pradhan Mantri Sahaj Bijli Har Ghar Yojana” to provide power to all households in the country by December 2018. The Rs 16,320-crore scheme aims at providing “last-mile electricity connectivity to all rural and urban household.

 

Siemens, Bharat Heavy Electricals, CESE, Reliance Infrastructure and Power Grid Corporation were trading higher by up to 1%, while Tata Power, JSW Energy, NTPC and Adani Power however, quoting 1% lower on BSE. On comparison, the S&P BSE Sensex was down 0.2% at 31,540 points.

11:05 AM

MFs step up buying amid market fall

 

The 'buy on dips' strategy continues to be the mantra of India's equity mutual fund managers. Flush with cash, domestic fund managers continued to be strong buyers, even as foreign institutional investors (FIIs) cashed out.   According to statistics available with the Securities and Exchange Board of India (Sebi), fund managers have already pumped over Rs 9,000 crore into stocks so far this month. READ MORE

10:31 AM

Emkay Global's top conviction ideas for September

 

Chambal Fertilisers; BUY; Target Price: Rs 158

 

Fertiliser segment enjoys higher ROCE at 14-15% compared to the Shipping segment where ROCE is ~5-6%. Due to the huge capex, we expect ROCE to remain depressed over FY18-19, post which it should come back to 15% from FY20E. We assign a BUY rating, valuing the company at 12x FY19E EPS of Rs13.2.

 

Cholamandalam Finance; ACCUMULATE; Target Price Rs 1,350

 

Cholamandalam Finance (CIFC) has built a well-diversified and de-risked product portfolio, which has insulated it from the CV downcycle. With 1) growth returning and asset quality improving in Vehicle Finance, 2) low overall Auto Financing market share and 3) expectation of revival in Home Equity (HE; LAP) portfolio post demonetisation, we believe CIFC is better placed than its peers. 

 

Indian Oil; BUY; Target Price: Rs 496

 

Stable GRM expectation of +US$5/bbl in the next 4-5 quarters, complimented by robust growth in marketed volume by c5.6% yoy in FY18E and stable marketing margin in FY18E will lead to a c36% yoy growth in FY18E EPS. Moreover, ROE should stay healthy at 21% in FY18.

 

Click here for more

10:15 AM

Govt bonds oversubscribed as FPIs bid for $700 mn

 

Government bonds on Monday received robust response from foreign investors attracting bids to the tune of about $700 million, against $429 million on offer.

 

The auction was conducted on NSE's e-bid platform from 1530 hours to 1730 hours, after the market hours.

 

At the end of the two-hour auction, as many as 37 bids were declared successful out of 47, the exchange data showed.

 

Foreign portfolio investors (FPIs) bid for investment limits in government debt securities worth Rs 4,541 crore ($699 million) as against Rs 2,786 crore ($429 million) on offer.

Click here for full report

9:59 AM

Re-rating likely of pharma stocks

 

The BSE Healthcare index has been one of the biggest gainers over the past few days, on easing of regulatory concerns, improving visibility over product launches and a return of growth in the domestic market. 

 

Ranjit Kapadia of Centrum Broking believes there are encouraging signs which could lead to a re-rating of pharmaceutical stocks, on the back of re-stocking in India and some recovery in the American market.  

 

Earlier, most analysts had thought there would be no revenue growth in the US market for large generic players for at least a year. READ MORE

9:42 AM

2017, the year of fewest market corrections

 

Investors went into a tizzy when the benchmark indices fell less than 2% on Friday, and after the stocks extended the fall by another 1% on Monday. Corrections of this magnitude are considered “business as usual”, but not this year.    

 

So far in 2017, the benchmark Nifty, a gauge tracking the movement of the country’s top 50 stocks, has fallen one per cent or more only on six occasions. READ MORE

9:36 AM

BHEL gets shareholders' nod for bonus share, 79% dividend

 

State-owned power equipment maker BHEL has received shareholders' approval for the proposal to issue 1 new equity bonus share for every 2 existing shares.

 

The proposal to issue bonus share in the ratio of one bonus share for every 2 existing shares to members was listed on the agenda for annual general meeting held on September 22, 2017, which as passed by the requisite majority, Bharat Heavy Electricals Ltd (BHEL) said in a BSE filing. READ MORE