Markets snap 7-session rally; Nifty settles September series above 9,750

All that happened in today's trade

3:46 PM

Anand James, Chief Market Strategist, Geojit Financial Services 

 

Short covering ahead of the F&O expiry gave muscle to relief rallies, after bargain hunting trickled in Nifty tested 100-EMA. Market will now look forward to possible return of FIIs from a month long hiatus and positive outcomes from the next week's GST council meeting may instil some buying interest in the domestic market.

3:45 PM

Sectoral trend 

All but two sectors (Nifty IT, Nifty Media) ended in green.

Source: NSE

3:42 PM

Sensex heatmap at close

Source: BSE

3:39 PM

Broader markets 

 

The BSE Smallcap and the BSE Midcap outperformed to gain 0.9% and 0.7%, respectively.

3:39 PM

Markets at close

The S&P BSE Sensex ended at 31,282, up 122 points, while the broader Nifty50 closed at 9,768, up 33 points. 

3:22 PM

World Gold Council to set up India's first spot gold exchange

 

The World Gold Council (WGC) plans to form a committee soon to help set up India's first spot gold exchange within 12 to 18 months, a senior official of the industry body said on Thursday.

 

A dedicated exchange for physical gold is expected to pave the way for standard gold pricing practices in India, apart from bringing in transparency into a market which sees large cash transactions. READ MORE

3:17 PM

European markets

European shares were little changed on Thursday as gains in financial stocks and a weaker euro provided support, while fashion group H&M fell after disappointing results.

 

The pan-European STOXX 600 index was down 0.1% to just below the two-month high it reached in the previous session in anticipation of US President Donald Trump’s tax overhaul proposal.

 

Germany's export-oriented DAX index and France's CAC outperformed, trading up 0.2% and flat respectively. Spain's IBEX added 0.1% as worries over the Catalonia independence referendum eased.

3:15 PM

Volatility index 

India VIX eases nearly 5%. 

Source: NSE

3:01 PM

Markets check 

 

At 3:00 pm, the S&P BSE Sensex was trading at 31,242, up 83 points, while the broader Nifty50 was ruling at 9,751, up 15 points. 

2:50 PM

Buzzing stock

Dishman Carbogen Amcis hit an upper circuit limit of 5% at Rs 321.55 on BSE after the company said its Switzerland unit received zero observations from the US health regulator. 

2:33 PM

Top five losers on Nifty 

Source: NSE

2:16 PM

Top 10 stocks Morgan Stanley recommends

 

Bajaj Finance

 

Babaj Finance, which has gained over 100 per cent year-to-date, is the preferred pick of the global brokerage from its financials coverage. The stock is a pure play on consumer and SME financing growth given it has the highest exposure (over 90 per cent) to these segments as a share of the loan book.

 

CLICK HERE FOR MORE

1:55 PM

Cement shares trade firm

 

Shares of cement companies were trading higher by up to 7% on the BSE in noon deal on expectation of production recovery in October-December (Q3) quarter of FY17.

 

The frontline cement shares like ACC, Ambuja Cements, India Cements, UltraTech Cement and Shree Cement were up in the range of 1% to 4%, as compared to 0.06% rise in the S&P BSE Sensex. Sanghi Industries, Saurashtra Cement, NCL Industries, Mangalam Cement and KCP were up between 2% to 5% on BSE. READ MORE

1:41 PM

Market Check

Equity benchmarks continued to be volatile in afternoon ahead of expiry of September derivative contracts today.

 

At 1:40 pm, the S&P BSE Sensex was trading at 31,176 up 17 points while the broader Nifty50 index was ruling at 9,728, down 7 points

1:28 PM

 Agrovet listing additional trigger for Godrej Industries

 

Strong prospects of subsidiaries and steady performance of its investment companies are expected to be the much-needed shot in the arm for Godrej Industries’ valuation. While it has stakes in Godrej Consumer (23.8%) and Godrej Properties (56.7%), and will benefit from their growth, the immediate trigger is the listing of Godrej Agrovet, its 63.7% subsidiary. 

 

Given that Godrej Agrovet is valued at Rs 8,600-8,800 crore, the value of Godrej Industries’ stake after considering holding company discount would be about Rs 4,200 crore. READ MORE

1:13 PM

Gold declines

Gold fell to over one-month lows today as the dollar rose on expectations of a US interest rate hike in December.

 

US gold futures for December delivery fell 0.36% to $1,283.10 a barrel.

12:57 PM

IPO

Prince Pipes and Fittings filed draft prospectus with capital market regulator to raise an estimated Rs 800 crore through an initial public offering.

 

The public issue comprises fresh issue of shares worth up to Rs 500 crore besides an offer for sale by the company's promoters -- Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda and Vipul Jayant Chheda, according to the draft red herring prospectus (DRHP).

12:43 PM

Buzzing Stock

Rai Saheb Reckhchand (RSR) Mohota Spinning & Weaving Mills hit a fresh 52-week high of Rs 256, up 5% on BSE, extending its past one-month rally after the company said it has taken various initiatives including expansion plans.

 

In the last one month, the stock soared 53% from Rs 167, as compared to 2% decline in the S&P BSE Sensex. In four months, it zoomed 246% from Rs 74 against a marginal 0.42% gain in the benchmark index.

12:29 PM

Dr Reddy's gains

Dr Reddy’s Laboratories has moved higher by 4% to Rs 2,409 on BSE in intra-day trade after the company received an Establishment Inspection Report (EIR) from the US health regulator for a unit of its Srikakulam plant in Andhra Pradesh.

 

“The company's formulation Srikakulam plant (SEZ) Unit I, Andhra Pradesh, have received an Establishment Inspection Report (EIR) from the US FDA,” Dr Reddy’s Laboratories said in BSE filing.

12:15 PM

Consumer loans will drive growth: Morgan Stanley

 

Morgan Stanley is of the view that corporate loan growth will remain muted even when the economy picks up on account of RBI's regulations on exposures to large corporates. 

 

The brokerage, however, added that consumer loans will remain big drivers of growth.

 

“As data availability becomes better and quicker, banks will be able to roll out new products (for instance HDFC Bank's "loan in 10 seconds"); in our view this, along with fairly strong economic growth, will help drive consumer loan growth at a 17% CAGR over the next decade,” the brokerage said. 

Click here for more from the report

12:02 PM

Top Sensex gainers and losers

Source: BSE

11:49 AM

Key takeaways from Morgan Stanley report

Global brokerage Morgan Stanley is bullish on India. It sees a multi-trillion-dollar opportunity in the country, riding on the government's digitisation drive.  

 

In a report titled 'India's digital leap - The multi-trillion-dollar opportunity' released on Wednesday, the brokerage forecasts India's gross domestic product (GDP) to touch $6 trillion -- the third largest in the world -- in the next ten years, and expects Sensex to hit the 100,000 mark with an equity market capitalisation of $6.1 trillion during the same period.  

 

Click here for seven key takeaways from the report:

11:33 AM

Ruchi Soya surges 14% post signing distribution pact with Patanjali

 

Ruchi Soya Industries surged 14% to Rs 25.30 on BSE on back of heavy volumes after the signing distribution partnership with Patanjali.

 

“The company has signed  a memorandum of understanding (MOU) with Yoga Guru Baba Ramdevji promoted Patanjali Ayurved for an exclusive sales and distribution arrangement for the entire range of Patanjali edible oil in large packs,” Ruchi Soya Industries said in a statement. Read full report here

11:21 AM

Direct tax receipts may be a spoiler for fiscal maths

 

Growth in advance tax collections slowed to 11% in the first half of the financial year, against 14%  a year ago, posing a challenge to the government’s tax collection target for the year. 

 

This may, in turn, disturb the fiscal maths in these difficult times when the economy is in need of additional expenditure.

 

Fiscal consolidation is facing challenges from the non-tax revenue side due to lower than expected receipts from spectrum. Besides, the income declaration scheme is likely to yield only Rs 7,000-8,000 crore in its third instalment, due by September 30, against Rs 15,000 crore in the first two. READ MORE

11:07 AM

Morgan Stanley report on Consumption sector

We forecast market capitalization of the consumption sector to grow 4x from current levels, to US$2 trillion in the next ten years: Future consumption is being advanced through leveraging, and non-food consumption itself is likely to grow faster than overall consumption, setting this sector, especially discretionary consumption, up for strong performance in the coming ten years. Consumption-related sectors including consumer discretionary and consumer staples are just over 25% of the market. We estimate this ratio could rise to 33%.

10:46 AM

Buzzing Stock

Divi's Laboratories rose 1.38% to Rs 861.85 at 10:04 IST on BSE on bargain hunting after yesterday's slide triggered by reports of US drug regulator issuing six observations to the company's Vizag unit.

10:36 AM

HPCL, Indian Oil, BPCL hit 8-week lows

 

Shares of oil marketing companies (OMCs) Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOCL) hit their respective eight-week lows on the BSE.

 

At 9:49 am, HPCL, BPCL and IOCL were down in the range of 2% to 3%, as compared to 0.06% rise in the S&P BSE Sensex. In past one month these three stocks have underperformed the market by falling between 10% and 13% against 1.9% decline in the benchmark index. READ MORE

10:26 AM

Market Check

Benchmark indices pared morning losses to turn flat ahead of September F&O expiry. At 10:25 am, the S&P BSE Sensex was trading at 31,216, up 57 points while the broader Nifty50 index was ruling at 9,731, down 4 points

10:23 AM

Rupee at over 6-month low

 

The rupee took more blows today as it slipped 16 paise to a fresh six and a half month low of 65.88 against the dollar that gained clout overseas on talk of a US rate hike and the prospect of monetary stimulus pullout.

10:20 AM

What If Digitization Fails? This means that:

 

1. GDP will likely settle at $ 5.5 trillion, implying a nominal growth rate of 9% over the next ten years.

 

2. India's market capitalization could grow more modestly at 9% to $ 5 trillion by 2027.

 

3. Loan growth by banks will likely be closer to 10% CAGR for the coming decade as MSMEs struggle to get loans and corporates move to bond markets compared to the current base case of ~13% CAGR.

 

4. Accordingly the financial and consumer sector returns may also be tempered and the respective market capitalizations will likely settle at lower levels somewhere between our bear and base case.

(Excerpt from Morgan Stanley report)