Sensex ends flat, Nifty below 9,800; broader markets underperform

All that happened in Tuesday's trade

3:54 PM

Anand James, Chief Market Strategist, Geojit Financial Services  

 

Domestic indices couldn't sustain the momentum from a positive opening and exhibited volatility on the backdrop of BSE putting a noose around the neck of 200 illicit companies by announcing compulsory delisting from Wednesday. On the other hand, FIIs persistent selling also seems to have impeded the general strength of the market. However, oil marketing companies continued to show strength fuelled by upbeat gross refining margins and the recent developments in the re-organization of heavy weights from the sector.

3:52 PM

Sectoral trend 

Source: NSE

3:46 PM

Sensex gainers and losers at close

Source: BSE

3:42 PM

Market breadth

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,649 shares declined and 925 shares rose. A total of 128 shares were unchanged.

3:39 PM

Broader markets underperform 

 

The BSE Midcap and the BSE Smallcap indices closed 0.4% and 0.3% lower.

3:37 PM

Markets at close

 

Sensex closed at 31,291, up 33 points, while the broader Nifty50 ended at 9,765, up 11 points. 

3:22 PM

Energy stocks gained with HPCL, BPCL and IOC rallying up to 3%. 

Source: NSE

3:16 PM

Stock trading volume light but don't blame the eclipse

 

US stock futures trading volume fell during the two hours on Monday that people across a large portion of the United States donned special glasses to catch a glimpse of the first total solar eclipse to unfold across the country in nearly a century. READ FULL STORY HERE 

3:12 PM

Infosys turmoil

The Securities and Exchange Board of India (Sebi) will keep a close watch on the share price movement of information technology bellwether Infosys, the market regulator's chairman Ajay Tyagi said on Tuesday. READ MORE 

3:06 PM

European markets trade higher

European stocks broke a three-day losing streak on Tuesday, building on gains in other markets boosted by signs of a global economic recovery and rising commodity prices. Gains for heavyweight miners boosted European shares after strong commodities prices steadied Asian markets earlier in the session.

 

The FTSE 100 rose 0.7%, led higher by mining stocks. The Stoxx 600 was up 0.5% and the Xetra Dax was 0.7% higher.

 

3:00 PM

Markets check

 

At 3:00 pm, the Sensex was trading at 31,322, up 63 points, while the broader Nifty50 was ruling at 9,773, up 19 points. 

2:55 PM

Buzzing stock

Hercules Hoists surged over 14% to Rs 152 on BSE after a bulk deal of 12.89 lakh shares was executed on the scrip at Rs 144 per share in the opening trade. 

2:22 PM

FPIs turn net sellers of equity

 

Foreign Portfolio Investors (FPIs) have turned net sellers of Indian equities in the past seven trading sessions, offloading a net amount of over Rs 10,000 crore. READ FULL REPORT HERE 

2:04 PM

Buzzing stock

Dr Reddy's Laboratories rose over 3% to Rs 2,011 and was the top gainer on Sensex after the company announced the out-licensing of DFD-06 to Encore Dermatology.  

1:58 PM

DBS CIO Investment Insights: EM Outperforms DM on Mounting US Political Turmoil

 

The writing has been on the wall – Developed Markets (DM) equities valuation is expensive and global investors have been hesitant to add on positions. Valuation for the S&P 500, in particular, is looking stretched and it should not come as a surprise that portfolio allocators pare down their exposure in the face of the rising turmoil in US President Donald Trump’s fledging presidency. 

 

Emerging Markets (EM), on the other hand, managed to outperform DM as the North Korean tension eased while investors look for cheaper exposure to equities. Meanwhile in currencies, the US Dollar Index (DXY) has seen a massive correction this year and the prevailing dollar weakness will have meaningful implications on the earnings trajectory of US corporates. Geared beneficiaries include the technology and materials sectors. This week, all eyes will be on the Jackson Hole meeting

1:32 PM

Markets check

 

At 1:30 pm, the S&P BSE Sensex was trading at 31,370, up 112 points, while the broader Nifty50 was ruling at 9,790, up 36 points.

1:19 PM

NOMURA ON ECONOMIC GROWTH

 

high-frequency data suggest that while survey-related indicators slowed sharply after the GST, real activity data were more mixed. Consumption and services growth indicators bounced back in July, but industry, investment and external sector data remain weak, or have slowed at the margin. 

 

Leading indicators, though, are clearly signalling a growth recovery by year-end, aided by remonetisation and an improvement in financial conditions. Given the impact of the GST and in line with our indicators, we expect only a modest recovery in GDP growth to 6.6% y-o-y in Q2 compared to 6.1% in Q1, which was affected by demonetisation. However, in H2 2017, we expect growth to accelerate sharply to 7.4%

Economy

1:17 PM

RELIANCE SECURITIES ON EMAMI

 

We believe that adverse impact of GST is transitory in nature and will correct itself in coming quarters with steady up-stocking by the trade, good monsoons and other favourable ​​macroeconomic factors. We expect the Company to witness a gradual recovery in 2QFY18 and a full-fledged recovery from 3QFY18 onwards.

 

Based on estimated adjusted EPS of Rs35.3, the stock currently trades at reasonable valuation of 31.4x FY19E earnings. We maintain our BUY recommendation on the stock with a revised rolled forward Target Price of Rs1316, based on 35x June’19 earnings.

1:16 PM

IPO WATCH: Apex Frozen Foods Ltd

 

AFFL has shown consistent growth in sales as well as profitability. Sales have grown at 28.6% CAGR between FY13-17 while PAT grew by 27.6% during the same period with consistently higher RoE of over 25%. Shrimp business in India is growing and the company has vast opportunities for exports as well. With the expansion the company is likely to maintain the sales and profitability momentum in coming years.  

 

Though there is no direct comparable listed company, we have taken Avanti Feeds (engaged in Shrimp feeding), Waterbase (Shrimp feeding) and Zeal Aqua (Shrimp farming) as peers. We like the business model of the company given its high asset turnover, customer stickiness and integrated business operations. At upper price band of Rs 175, the stock looks attractive and hence recommends investors to subscribe the issue for listing as well as long term gains

 

(Source: Nirmal Bang)

1:13 PM

ECONOMY WATCH: ICRA ON GDP GROWTH

 

ICRA expects the growth of the Indian gross value added (GVA) at basic prices in year-on-year (YoY) terms to moderate to 6.3% in Q1 FY2018 from 7.6% in Q1 FY2017, with a slowdown in expansion of the industry (to 3.9% from 7.4%) and services (to 8.2% from 9.0%) outweighing the impact of the anticipated pickup in agriculture (to 4.0% from 2.5%)

 

Industrial growth is expected to slow to a modest 3.9% in Q1 FY2018 from the healthy 7.4% in Q1 FY2017, led by manufacturing, electricity, gas, water supply and other utility services and construction. 

 

services sector growth is expected to ease to 8.2% in Q1 FY2018 from 9.0% in Q1 FY2017, led by the weak trend in earnings, displayed by two of the key sub-sectors, namely banks and telecom, as well as the sluggish momentum recorded by non-food bank credit, commercial paper etc

1:11 PM

HDFC SECURITIES ON JAIN IRRIGATION

 

Jain Irrigation Systems Ltd (JISL), for Q1FY18 on a consolidated basis, reported subdued numbers. Revenue grew 1% YoY to Rs1,681 crore, owing to the impact of GST on businesses and currency headwinds. Although near term growth is expected to be subdued, we believe the long term triggers are intact. We maintain our Accumulate rating and target price of Rs112 (12x FY19E EPS). Key growth drivers: Better investment in the infra space (Smart cities), mandatory micro-irrigation systems, improving balance sheet position.

1:07 PM

Indian Hotels Company slips

Indian Hotels Company was trading 6% lower at Rs 112.50, extending its Monday’s 3% fall on BSE, after the company said its board approved the fund raising of upto Rs 1,500 crore through rights issue.

 

Tata Group hospitality firm said the objective of the rights issue is to meet the long-term financing needs for capital expenditure, growth plans and debt repayment.

 

Indian Hotels has a consolidated gross debt of Rs 3,383 crore. After taking into account liquidity of Rs 161 crore, the net debt was Rs 3,221 crore as at June 30, 2017 (Q1FY18).

12:51 PM

Fortis Healthcare erased losses after hitting 30-month low of Rs 126, down 13% on the National Stock Exchange (NSE) in intra-day trade, on the back of heavy volumes. At 12:43 pm the stocks was trading 2.5% lower as against 0.4% rise in BSE Sensex

 

12:32 PM

GDP growth seen at 6.6% for April-June quarter: Nomura

India is expected to see a modest recovery in GDP growth at 6.6% for the April-June quarter as compared to 6.1% in January-March, which was affected by demonetisation, says a Nomura report.

 

Economic activity in the country, which had lost some momentum in the run up to the Goods and Services Tax (GST) rollout, has started to recover, according to Nomura.

 

"Given the impact of the GST and in line with our indicators, we expect only a modest recovery in GDP growth to 6.6% year-on-year in Q2 (April-June) compared to 6.1% in January-March, which was affected by demonetisation. However, in the second half of 2017, we expect growth to accelerate sharply to 7.4%," it said in a research note.

12:13 PM

Realty drags

Extending fall for third consecutive session, Nifty Realty fell 0.5% dragged by DLF, Sobha, Unitech and IndiaBulls Real Estate

Source: NSE

11:53 AM

Balakrishnan seeks exit of Infosys chairman, co-chairman

Former Infosys chief financial officer (CFO) and N R Narayana Murthy supporter V Balakrishnan has sought the resignation of four members of the company board, including Chairman R Seshasayee and Co-chairman Ravi Venkatesan, over alleged governance failure.

 

Following last week’s public spat at the information technology (IT) bellwether, he suggested that the board be reshuffled before a new chief executive is named to replace Vishal Sikka, who resigned on Friday after three years at the helm over “malicious personal attacks amplified by the very people from whom we all expected the most steadfast support”. 

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V Balakrishnan, former Infosys, chief financial officer

 

11:39 AM

Buzzing stock

Westlife Development surged 15% to Rs 283, also its 52-week high on BSE in intra-day trade, on back of heavy volumes. The company is owner of the Master Franchisee of McDonald’s restaurants in West and South India.

The trading volumes on the counter jumped more than eight-fold with 179,000 shares changed hands on BSE till 11:17 am as against an average 21,000 shares were traded daily in past two weeks.

11:17 AM

HDFC Life IPO: Not much room to bargain

 

A finer reading of HDFC Life’s draft red herring prospectus could prompt investors to question if the mega-merger of HDFC Life and Max Life is truly a missed opportunity, particularly for HDFC Life. 

 

That may seem justified looking at the way the insurer's financials stack up against ICICI Prudential Life (I-Pru Life) and SBI Life, which are ahead in terms of income and net profit. HDFC Life’s market share has receded from 7.6% in FY16 to 6.9% as of July 31, 2017. 

Click here for full report

11:01 AM

Fortis Healthcare at 30-month low

Fortis Healthcare has hit 30-month low of Rs 126, down 13% on the National Stock Exchange (NSE) in intra-day trade, on the back of heavy volumes. The stock was trading at its lowest level since February 11, 2015.

 

On August 14, Fortis Healthcare had informed the stock exchanges that, Fortis Healthcare Holdings Private Limited, the promoter of the company, sold 5.46 million (1.05%) equity shares on August 10, through off-market.

10:39 AM

India-focussed offshore funds, ETFs mop up $2.6 billion in Q1

 

India-focussed offshore funds and exchange-traded funds (ETFs) continued to receive robust flows during the June quarter (Q1), with inflows of $2.6 billion, higher than the $2 billion received in the previous quarter. 

 

The total assets of the 10 largest India-focussed offshore funds and ETFs grew 7.5% to $27.3 billion. Two Japan-domiciled funds mopped up $1.2 billion of the inflows, the most within the category. 

 

In the six months to June, the category received net inflows of $4.6 billion compared with net outflows of $2.3 billion in Q1 of FY17, according to a note put out by fund tracker Morningstar India. 

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