MARKET WRAP: Sensex ends 140 pts down, FMCG stocks slip; Rupee hits new low

In sectors, the Nifty FMCG index slipped 0.9 per cent, weighed by fall in Godrej Consumer Products and Hindustan Unilever (HUL), which lost 2.7 per cent to end the day at Rs 1,606 levels.

3:47 PM

Nifty FMCG index ends 0.87% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
GODREJ CONSUMER	1350.05	1399.15	-49.10	-3.51
GLAXOSMITH C H L	7250.10	7499.45	-249.35	-3.32
HIND. UNILEVER	1606.25	1651.20	-44.95	-2.72
BRITANNIA INDS.	6196.50	6344.05	-147.55	-2.33
GODREJ INDS.	603.00	612.15	-9.15	-1.49

3:44 PM

Nifty sectoral gainers and losers of the day

3:38 PM

BSE Sensex: HUL, RIL among top losers of the day, YES Bank top gainer

3:37 PM

Market at close

The S&P BSE Sensex ended at 38,018, down 140 points while the broader Nifty50 index settled at 11,477, down 43 points.

3:16 PM

Reliance Infra rallies 6% as CRISIL changes ratings for NCDs

Shares of Reliance Infrastructure have moved 6% higher to Rs 479 on the BSE, after the company said the rating agency Crisil withdrawn its ‘D’ rating for non-convertible debentures (NCDs) worth of Rs 7.10 billion.
 

The company has repaid the NCDs from the funds received from the sale of Integrated Mumbai Distribution Business to Adani Transmission. READ MORE

2:59 PM

Financial crisis explained: How greedy US banks crippled world economy

It has been 10 years since the Lehman Brothers shut shop. People who faced the global recession at that time say it was not their fault and still had to leave their homes. The housing market in the USA crashed and the whole world's economy went for a toss. Three million people in the US lost their jobs and five million lost their homes. But, how did it all happen? READ HERE

Lehman Brothers (Photo: Reuters)

2:55 PM

Motilal Oswal Research on MAS Financial Services (MASFIN)

We believe MASFIN has all the ingredients of a good investment: (a) a small base and presence in well-developed states for strong growth, (b) relentless management focus on generating sustainable, high return ratios, (c) healthy capitalization and d) consistent and healthy asset quality, despite catering to the lower end of the socio-economic customer segment. We maintain our estimates for FY19/20 and reiterate Buy with a target price of Rs 780 (24x Jun’20E EPS, implied 4.3x Jun’20E BV).

2:50 PM

Economists expect RBI to hike rates in Oct policy as rupee fall continues

With the continued fall in the rupee, economists and bond market participants expect the Reserve Bank of India (RBI) to hike rates in its October policy. The rupee closed at 71.57 a dollar, down from its previous record close of 71.18. Other emerging markets currencies also fell against the dollar. READ MORE

2:49 PM

COMMENT Nomura on rupee

•  A deteriorating EM risk backdrop and pressure on current account deficit currencies has led USD/INR to multi-year highs. We see risk of continued INR depreciation in the near term and enter a short-dated long USD/ INR call spread position.

 

•  Local factors for depreciation include limited intervention by the Reserve Bank of India (RBI) and limited concerns, in our view, over FX depreciation (watch this space), a lack of urgency to hike rates, rising political risks, and a large trade deficit with a higher oil price and portfolio outflows.

 

•  However, there are reasons to expect INR depreciation to be controlled, given the substantial space for policy action by the RBI and government (if desired). Option positioning risk (selling of high strike INR puts) is also less of an RBI concern, while the dual deficits are a drag on INR, but have become less so over the past five years.

2:47 PM

Stock view: Balkrishna Industries

The Board of Directors of Balkrishna Industries (BIL) has approved a capex outlay of Rs 1,700 crore, which will be completed over 30 months. Incorporating the revised capex outlay disclosed by the company and consequent decline in other income, we change our PAT estimates for FY18-20E. We now expect BIL to clock PAT CAGR of 24.4% vs. 30.3% in the past. We also reduce our valuation multiple, to value BIL at 21x P/E on FY20E EPS of Rs 59.2 and assign a target price of Rs 1250 with a HOLD rating on the stock.
 

(Source: ICICI Securities)

2:46 PM

Amazon follows Apple Inc, hits $1 trillion market value milestone

Amazon.com Inc on Tuesday became the second US company to reach $1 trillion in stock market value, just weeks after Apple Inc hit the same milestone on Aug 2.

 

Shares in the world's largest online retailer last traded up 1.4 per cent at $2,041.68. Its shares hit the $2050.2677 level to give its stock a value of $1 trillion. READ MORE

 

2:45 PM

News rover

Centrum Financial Services Ltd, the NBFC arm of the Centrum Group, a leading domestic integrated financial services organisation, signed an agreement to acquire L&T Finance’s Supply Chain Finance business. The business has a loan book of approximately Rs. 800 crore, a staff strength of 50 professionals and operates out of 16 cities in India. L&T Finance Ltd. is a subsidiary of L&T Finance Holdings Ltd

2:44 PM

Edelweiss on road construction sector

While FY18 marked stellar NHAI project awards (up ~100% by value), our recent meeting with the authority indicates FY19 may be a period of consolidation. While 84 out of the 104 hybrid annuity (HAM) projects awarded till date have achieved financial closure, banks/developers’ limited ability to absorb incremental HAM projects means EPC may be the preferred mode of project awards in FY19. NHAI is targeting FY19 spend of ~INR1.1tn, up 32%.

Factors such as upcoming elections and limited appetite for HAM projects are likely to limit FY19 project award to 4,000–5,000km (versus ~7,400km in FY18), in our view. That said, our analysis reveals reasonable revenue visibility for FY21 even after assuming conservative order inflows for FY19/20. Developers with strong financial health such as Sadbhav Engineering, KNR Constructions and Ashoka Buildcon remain the best plays on the Indian road space in our view.

2:37 PM

Top losers in BSE Sensex:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
HIND. UNILEVER	1601.20	1651.40	-50.20	-3.04
TATA MOTORS-DVR	139.00	142.65	-3.65	-2.56
BHARTI AIRTEL	368.55	377.75	-9.20	-2.44
KOTAK MAH. BANK	1236.00	1259.70	-23.70	-1.88
TATA MOTORS	257.15	262.05	-4.90	-1.87

2:29 PM

Nifty FMCG index down over 1%

2:11 PM

Bharat Electronics, Vodafone Idea, Force Motors, IndiGo hit 52-week lows

Shares of Bharat Electronics (BEL), Vodafone Idea, Force Motors, Castrol India, InterGlobe Aviation (IndiGo) and Tata Communications have hit their respective 52-week lows on the BSE as the benchmark indices are trading lower for the sixth trading days. READ MORE

2:00 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,830.76	-327.16	-0.86
S&P BSE SENSEX 50	11,947.25	-114.45	-0.95
S&P BSE SENSEX Next 50	33,866.79	-433.85	-1.26
S&P BSE 100	11,688.69	-117.63	-1.00
S&P BSE Bharat 22 Index	3,625.41	-34.40	-0.94

(Source: BSE)

1:45 PM

US, European banks divided over 'high-risk jurisdiction' list of nations

Global custodians are at loggerheads among themselves over preparing a list of nations that should be classified as “high-risk jurisdictions”. Sources said US-based banks had pushed for the inclusion of Mauritius in the list, but a few European ones are opposed to it. READ MORE

1:30 PM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
BHARAT ELECTRON	93.95	-15.10	-13.85
SHANKARA BUILD.	1451.20	-105.90	-6.80
ENGINEERS INDIA	124.35	-8.55	-6.43
M & M FIN. SERV.	440.30	-25.70	-5.52
ANDHRA BANK	30.70	-1.70	-5.25

1:16 PM

Global financial crisis: How US housing industry went bust, shattered lives

“It is not what you don’t know that gets you into trouble. It is what you know for sure that just ain't so.” Though the author of the quote is still unknown, there is nothing better than this to define the global financial crisis of 2008. READ MORE

12:59 PM

Zydus Cadila gets USFDA nod to sell herpes viruses treatment drug

Drug firm Zydus Cadila Wednesday said it has received final approval from the US health regulator to market Acyclovir injecion, used to treat infections caused by herpes viruses, in the US market.

The stock of Cadila Healthcare was trading 1.18 per cent higher at Rs 396.90 apiece on the BSE. READ MORE

12:54 PM

NEWS ALERT Rupee slips to new low of 71.94 per dollar

12:35 PM

Merck falls 14% in two days after CCI nod for acquisition by P&G

Shares of Merck were locked in the lower circuit for the second straight day, down 5% at Rs 3,064 per share on the BSE, after the Competition Commission of India (CCI) approved the acquisition of 51.8% stake in the company by Procter and Gamble Overseas. READ MORE

12:21 PM

Beneficial ownership norms: Centre, Sebi assuage FPI outflow concerns

The government and the Securities and Exchange Board of India (Sebi) on Tuesday assuaged fears of capital outflows from the country on account of the new beneficial ownership norms for foreign portfolio investors (FPIs). Economic Affairs Secretary SC Garg said there was nothing new in the Sebi circular of April 10. READ MORE

12:08 PM

India's services growth slows in August on weaker demand, rising input prices

India's dominant services sector expanded at a slower pace last month than in July as weaker demand and rising input costs kept a lid on hiring, a private survey showed on Wednesday.

 

The Nikkei/IHS Markit Services Purchasing Managers' Index declined to 51.5 in August from a 21-month high of 54.2 in July. READ MORE

12:00 PM

Market at Noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,025.56	-132.36	-0.35
S&P BSE SENSEX 50	12,009.30	-52.40	-0.43
S&P BSE SENSEX Next 50	33,976.04	-324.60	-0.95
S&P BSE 100	11,745.87	-60.45	-0.51
S&P BSE Bharat 22 Index	3,641.32	-18.49	-0.51

(Source: BSE)

11:45 AM

The worst is not yet over for rupee, global headwinds to inflict more pain

 

India’s rupee owes its tag of Asia’s worst-performing currency this year to the selloff sweeping emerging markets. There’s more pain in store from beyond its borders.

 

While foreign currency debt has zoomed, various external vulnerability indicators paint a rather mixed picture, according to the Reserve Bank of India’s annual report. Indeed, data due as early as next week will probably show the nation’s current-account deficit widened in the June quarter to 2.6 per cent of gross domestic product, the highest in 4 1/2 years. READ MORE

11:30 AM

Sical Logistics surges 14% on fund raising plan through preferential issue

 

Shares of Sical Logistics surged 14% to Rs 191 on the BSE on back of heavy volumes after the company announced fund raising plan through preferential issue.

 

“A meeting of the board of directors of the company will be held on September 7, 2018, to consider raising funds through issue of equity shares on a preferential basis, subject to the approval from shareholders and regulatory approvals,” Sical Logistics said in a statement. READ MORE

11:15 AM

Sebi imposes Rs 7.45 million fine on 48 entities for fraudulent trading

 

Markets regulator Sebi has slapped a total fine of Rs 7.45 million on 48 entities for fraudulent trading in the shares of Vandana Knitwear. The entities have been fined for violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.

 

An investigation was conducted into the alleged irregularities in trading in the scrip of Knitwear from March to December 2012. It was found that the entities who are connected to each other executed repetitive on-market and off-market transactions amongst themselves. READ MORE

11:00 AM

Nifty Realty index down over 1%