Nifty, Sensex end nearly 1% higher; M&M top loser on cess hike

Catch all that happened in the market here

3:56 PM

Analyst View

 

Anand James, Chief Market Strategist, Geojit Financial Services says: Domestic indices ascended on the back drop of a recovery in the global markets, while receding intensity of rain havoc in the financial capital also helped improve risk appetite. Subdued rollover numbers seems to be concerning, but significant short covering was seen in the IT and pharma sectors, keeping market buoyant.

3:55 PM

Nifty chart for the day

Source: NSE

3:53 PM

Other gainers

Nifty Financial Services ended nearly 1% higher led by gains in M&M Finance, PFC, HDFC and HDFC Bank

3:51 PM

Adani Enterprises surges

Adani Enterprises surged 8% after Australian Trade Minister said all approvals for Carmichael coal mine are in place and Adani group will make decisions on exporting coal from Carmichael mine to India.

3:49 PM

Metals Shine

Source: NSE

3:42 PM

Sectoral Trend

All sectoral indices except Nifty IT (down 0.1%) ended the day in green. Nifty Metal was the top sectoral gainer, up 2.6%, followed by Nifty Realty, Nifty Fin Services and Nifty FMCG

3:37 PM

Top gainers and losers on BSE Sensex

Source: BSE

3:35 PM

Broader Markets

Broader markets outperformed benchmark indices with BSE Midcap and BSE Smallcap rising 1.5% and 1.3% respectively.

3:33 PM

Markets at close

The Sensex and Nifty rose nearly 1% on Wednesday, recouping most of the losses in the previous session, ahead of derivatives expiry of August series due tomorrow.

The Sensex settle at 31,646, up 258 points, while the broader Nifty50 was ruling at 9,884, up 88 points

3:20 PM

Nifty Gainers

IOC traded at record high with 4.5% gains followed by Hindalco (up 4%) and BPCL (up 3.8%)

Source: NSE

3:13 PM

BUZZING STOCK

HEG surged 8.85% to Rs 659.05 on BSE, with the stock extending recent strong gains.

 

High volumes were witnessed on the counter. On the BSE, 2.99 lakh shares were traded on the counter so far as against the average daily volumes of 92,041 shares in the past one quarter. The stock had hit a high of Rs 668.95 so far during the day, which is also its record high.

3:07 PM

Global Markets

The dollar came off a 2-1/2 year low and world stocks rose on Wednesday after the United States’ measured response to North Korea’s missile test soothed jittery investors who turned their focus to positive economic data.

 

European stocks rose higher, tracking counterparts in Asia and the United States and reversing losses from the day before when investors were spooked by Pyongyang’s firing of a ballistic missile over Japan.

 

In Europe, the pan-European STOXX 600 gained 0.6%, recovering nearly all the ground lost in the previous session and banking stocks .SX7P - which had led the risk-averse move lower on Tuesday - were up nearly 1%.

 

This followed gains in Asia: MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.6% while Japan's Nikkei rose 0.7%.

3:01 PM

47% of global venture capital transactions came from Asia in 2017

 

Global venture capital transactions witnessed significant uptrend this year with deals worth USD 47 billion in the April-June quarter, says a report.

 

The largest proportion of deal value came from Asia, which contributed 47 per cent to the deal value this year so far, the report by alternative investment research firm Preqin said. 

Click here for full report

2:56 PM

Equinomics Research on Infosys

 

In our view, the stock has been already punished more than what it deserves. It has slipped 14.2% from its 52-week high (October 2015). During the same period, the Sensex has gained 14%. Infosys now trades at 14.7x its FY2017 earnings. This valuation is at steep discount to peers like TCS and it is on par with small IT companies which have an annual revenue of less than Rs 5,000 crore

2:54 PM

COMMENT: GST collection

 

As per latest data, Rs 92,300 crore has been collected for the month of July. July CGST (including share in IGST) would likely be Rs 40,000 - 45000 crore. This might seem low given that around Rs78,000 crore is expected to be garnered on an average every month from indirect taxes as per budget estimates. 

 

However, we note that it is early to assess the impact on government accounts. We view this data positively given that only 46% of the potential tax payers have filed GST till now. We need to await data over the next two - three months for better clarity

 

 

(Source: Kotak Securities)

2:52 PM

Finance Minister on cess hike

 

"Price of luxury vehicles substantially came down post GST rollout; Cess was to be levied on large or luxury vehicles," the FM said.

 

He added that, "states which lose revenue on GST rollout will be compensated via cess."

2:51 PM

Settlement with Vikram Bakshi not possible: McDonald's to NCLAT

2:50 PM

COMMENT: Sridhar V, Partner, Grant Thornton India on cess hike

 

While the ordinance sets right the anomalies which crept in while the rates were finalised for the passenger car segment in early June, the additional 10% cess will have a dampening impact on the otherwise increased demand expectation for luxury cars and SUV, which in recent times have been picking up. The government is expected to come up with more clarity if it intends to have a couple of more levels of cess within the overall cess of 25%

2:45 PM

Cess hike on large cars will not dent volumes, say analysts

 

Auto and auto ancillary stocks continued to trade higher even after the Cabinet on Wednesday cleared an ordinance to hike cess on luxury cars and sport-utility vehicles to 25% from 15% under the goods and services tax (GST) regime at present. 

 

Ankur Varman, AVP - Institutional Equity sales at SBI Capital Markets maintained his bullish on the auto stocks, saying cess hike wouldn't impact volumes.  

 

"The cess hike doesn't change our outlook on the auto stocks. We’re particularly bullish on Maruti Suzuki in the four-wheeler space and Hero MotoCorp among the two-wheelers," said Varman. READ MORE

2:31 PM

Market Check

Benchmark indices maintained strong gains in afternoon, tracking positive European peers after easing of geopolitical tensions surrounding around North Korea.

At 2:30 pm, the Sensex was trading at 31,653, up 264 points, while the broader Nifty50 was ruling at 9,888, up 92 points.

2:15 PM

Earnings Impact

Jenburkt Pharmaceuticals fell 4.42% to Rs 414.90 on BSE after the company reported net loss of Rs 2.88 crore in Q1 June 2017, compared with net profit of Rs 3.53 crore in Q1 June 2016.

2:02 PM

G20 economic growth to exceed 3%, predicts Moody's

 

Moody's Investors Service kept its forecast for G20 economic growth at just over 3% for this year and next, but warned of geopolitical risks, US protectionism and spillovers from global monetary tightening and China's deleveraging measures.

 

The rating agency said surprisingly strong data in the first half of the year prompted it to raise 2017 growth forecasts for China to 6.8% from 6.6%, for South Korea to 2.8% from 2.5%, and for Japan to 1.5% from 1.1%.

1:49 PM

Nifty Bank

Private sector banks like YES Bank, HDFC Bank were among the top five gainers on the index

Source: NSE

1:33 PM

Order win

 

Wind turbine maker Inox Wind on Wednesday said it had bagged an order from Adani Green Energy to develop a 100 MW wind power project in Gujarat.

 

"The company has closed a deal for developing a 100 MW wind power project for Adani Green Energy, a part of the Adani group at Kutch in Gujarat," Inox Wind said in a regulatory filing.

1:23 PM

Crude Check

Oil prices dipped on Wednesday but gasoline spiked to its highest since mid-2015 as flooding in the wake of Hurricane Harvey knocked out almost a quarter of US refineries, crimping demand for crude but raising fears of fuel shortages.

 

US West Texas Intermediate (WTI) crude futures were at $46.35 per barrel, down 9 cents from their last close while Brent crude futures were down 6 cents, at $51.94 a barrel.

1:06 PM

European Markets

European markets started the session in the black as investors tried to oust any nerves surrounding North Korea tensions and took advantage of the positive sentiment seen overseas.

 

The pan-European Stoxx 600 was 0.6% higher after hitting a six-month low in the previous session.

12:51 PM

KEI Industries hits record high

 

KEI Industries rose over 2% to Rs 251 on BSE after net profit surged 144.8% to Rs 27.47 crore on 43.8% growth in net sales to Rs 790.89 crore in the June quarter of FY18 compared to the same quarter of FY17. 

12:36 PM

Nifty Auto continues trading 1% higher post Cabinet approval to cess hike ordinance

Source: NSE

12:19 PM

ALERT: Cabinet approves raising levy on luxury cars, sport-utility vehicles to 25% from 15%, says Reuters quoting government sources

12:10 PM

Broader markets continue to outperform 

 

The BSE Midcap and the BSE Smallcap indices were trading 1.5% higher each.