Sensex pares early gains to end 430 pts lower; Nifty PSU Bank index dips 3%

All that happened in the markets today.

4:21 PM

Market Analysis for Tuesday, 6th March 2018 by Jayant Manglik, President, Religare Broking

 

The equity benchmark indices started the day on a strong note, following positive global cues. However, it failed to sustain at higher levels, as the Nifty index slipped from an intra-day high of 10,441 to end the session sharply lower at 10,249 levels, down 1.1%. The broader market indices ‘BSE- Midcap and Smallcap’ also registered a sharp fall, closing the session with losses of 0.8% and 1.3% respectively. Barring Consumer durables, which closed marginally higher, all the other sectoral indices closed on a negative note with Auto, Banks, Capital Goods, FMCG and IT being the major losers.

4:01 PM

Market rundown by Vinod Nair, Head of Research, Geojit Financial Services: 

 

Market gave up gains despite positive trade in global market. Consolidation continues led by broad selling across all sector. Market has broken yesterday’s low while banks continue to struggle due to NPA issue, higher bond yield & cost of funds. Investors are little nervous to start accumulating and are waiting for major triggers to get direction."

3:36 PM

Nifty Bank index drags, falls for fifth straight session

3:35 PM

Nifty Realty index falls over 2%

3:33 PM

Sectoral Trend

3:32 PM

Sensex heatmap

3:31 PM

Markets at Close

The S&P BSE Sensex ended the day at 33,317, down 429 points, while the broader Nifty50 index settled at 10,249, down 109 points

3:25 PM

MARKET STRATEGY Time to buy dividend yield stocks, says Centrum Broking

As markets are somewhat under the weather, and as we are in the middle of fourth quarter of the financial year, Q4FY18, it’s good time to look at “Dividend” yielding stocks. In the current economy, where bank fixed deposits offer interest rates to the tune of 6-7%, there are stocks which are giving dividend yields similar to that. Further, the interest on bank fixed deposits is taxable whereas the dividend from equity is completely exempt from tax (except when the dividend income in a financial year exceeds Rs 1 million). In that context, post-tax dividend yields of some of the stocks is way higher than the post-tax interest yield on bank fixed deposits. So, investors can consider some of the high dividend yield stocks to bring in regular inflows.
 

3:14 PM

Nifty Auto slips over 1%, M&M, TVS Motors drag

3:14 PM

Nifty PSU Bank index slips over 2%

3:05 PM

Economy watch: Nomura on PMI numbers

 

The sudden dip in the services PMI back into contractionary territory is a negative surprise. The drop could be a data quirk – there have been many times in the past when the services PMI has fallen only to recover the following month. Or, it could reflect something more fundamental due to tighter lending standards (especially for trade financing) due to recent banking sector developments. 

 

We currently expect the cyclical growth recovery to continue, including in services, and will wait for the March PMI data and other leading indicators for services to assess whether this is a blip or not

2:54 PM

Asia's biggest currency gain in 20 years may be about to end

 

Asian currencies may be on the verge of a correction after completing the best year in at least two decades. The warning sign? Indonesia’s rupiah slumped to a two-year low last week.

 

The rupiah is seen as a bellwether of sorts for Asia given the high foreign ownership of the nation’s bonds. The currency is typically among the first in the region to be sold when sentiment sours, and this often heralds a broader decline among its peers. READ MORE

2:44 PM

Market Check

S&P BSE Sensex	33,684.22		-0.19%
Nifty 50	10,346.00		-0.12%
S&P BSE 200	4,528.72		0.04%
Nifty 500	9,128.75		-0.08%
S&P BSE Mid-Cap	16,355.23		0.31%
S&P BSE Small-Cap	17,857.54		-0.17%

2:28 PM

RBI set to give govt Rs 100 billion interim dividend, say sources

Government expects to receive Rs 100 billion ($1.5 billion) as interim dividend from the Reserve Bank of India this month, people with knowledge of the matter said. The amount has been calculated for the six month through Dec 31, the people said asking not to be identified as the information is private. Reserve Bank of India’s financial year runs from July to June READ MORE

A woman walks past the Reserve Bank of India (RBI) head office in Mumbai | Photo: Reuters

2:18 PM

Dilip Buildcon nears record high on strong order inflow

 

Shares of Dilip Buildcon moved up by 7% to Rs 1,030 on the BSE in noon deal, extending its 2% gain in past three trading sessions, after winning projects worth of about Rs 75.36 billion from the National Highways Authority of India (NHAI). The stock is trading close to its record high of Rs 1,059 touched on December 27, 2017 in intra-day trade. READ MORE

2:13 PM

Reliance Infrastructure wins DMRC arbitration award in Delhi High Court

Reliance Infrastructure won its case against the Delhi Metro Rail Corporation (DMRC) in the Delhi High Court on Tuesday. Anil Ambani-promoted Reliance Infrastructure said the court has upheld its arbitration award of Rs 29.50 billion as compensation along with interest to Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure Limited (RInfra). READ MORE

2:01 PM

Sectoral Trend

1:51 PM

India's apparel exports may dip in FY18 over GST, global challenges

If the 10-month data from April 2017 to January 2018 is anything to go by, India's apparel industry may post a rare decline in exports for the current fiscal 2017-18, let alone meeting the $20 billion target. READ MORE

1:38 PM

Govt might revise licence fee of Bt cotton seed for 2018-19 crop season

After a gap of two years, the central government might revise the ‘trait value’ (licence fee) of genetically modified (Bt) cotton seed for the 2018-19 crop season. The current price is Rs 800 for a 450g packet; this might also be changed. Of this, Rs 49 is the ‘trait fee’ and this could be cut by Rs 20-25. The Centre sets both rates. READ MORE

1:30 PM

Nomura on KNR Constructions

 

We continue to value the company on a sum of parts basis, with KNR’s EPC business at 18.0x FY20EPS of Rs 18.7 (in line with sector) together with Rs 47/sh value for BOT assets (at 1x BV) to arrive at a target price of Rs 383. Key risks are aggressive competition, payment issues in state projects and worsening working capital metrics.

1:15 PM

Gitanjali Gems downfall continues; tanks 71% in three weeks

Gitanjali Gems is locked in lower circuit for the 13th straight trading day, down 5% at Rs 18.35, its new low on the BSE, after the media report suggested that the Central Bureau of Investigation (CBI) arrested Vice President of the company in Punjab National Bank (PNB) case. READ MORE

1:12 PM

Prabhudas Lilladher on Aurobindo Pharma

Aurobindo received nine observations (Form 483) post USFDA visit of Unit‐IV in February 2018 and as management suggested, none of the observations were related to data‐integrity issues and were mostly on procedural aspects. We believe that ARBP will be able to address the issues raised in the observations as none of those are serious in nature and mostly are about GMP.

We expect Aurobindo to achieve resolutions on these observations in FY19E and is unlikely that any new approval of ANDAs to be blocked till resolution achieved. Maintain our 'BUY’ recommendation and retain target price at Rs 909

1:09 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,804.87	+58.09	+0.17
S&P BSE SENSEX 50	10,850.65	+34.57	+0.32
S&P BSE SENSEX Next 50	33,468.63	+200.74	+0.60
S&P BSE 100	10,752.71	+38.94	+0.36
S&P BSE Bharat 22 Index	3,549.63	+5.00	+0.14

(Source: BSE)

12:55 PM

STOCK WATCH Top gainers (BSE 500 index)

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
SCHNEIDER ELECT.	112.30	105.45	6.85	6.50	72023
PHOENIX MILLS	687.40	649.95	37.45	5.76	35905
BAJAJ HOLDINGS	2843.00	2705.45	137.55	5.08	4815
VAKRANGEE	170.65	162.55	8.10	4.98	673696
DILIP BUILDCON	1002.65	962.10	40.55	4.21	106943

12:50 PM

Equinomics maintains buy rating on Bayer Cropscience

 

The company’s strong presence in key crops of fruits and vegetables, cotton, and rice, along with a growing product portfolio, provides us comfort on the long-term growth trajectory. We expect Bayer to outperform industry growth given its strong product portfolio and line-up of new launches over the next few years.

 

At the current market price the stock trades at 36.7x its FY2018E EPS of Rs.104 and at 32.6x its FY2019E EPS of Rs.117. We reiterate a BUY on the stock with a target price of Rs.5,000 (which is 42.7x its FY2019E EPS of Rs.117). This leading global player in the agri space mostly trades at substantial premium in the Indian equity markets and we believe that it would continue to enjoy such high premium in future as well

12:40 PM

SITI Networks hits over four-year low; stock falls 14%

SITI Networks hit an over four-year low of Rs 15.70, down 14% on the BSE in intra-day trade, on back of heavy volumes. The stock is trading at its lowest level since September 2013. READ MORE

12:31 PM

Stock in News

 

Shares of Gitanjali Gems cracked another 5% in morning trade on bourses today after CBI said that the PNB fraud was going on since 2010. The CBI yesterday said the violation of norms for issuance of Letters of Undertaking (LoUs) to benefit billionaire jeweller Nirav Modi and his uncle Mehul Choksi had been going on since 2010. Reacting to the development, Gitanjali Gems stocvk slumped 5 per cent, to hit its fresh 52-week low of Rs 18.35 on BSE.

12:14 PM

Sharekhan on Grasim

 

Grasim is on a strong growth trajectory, with ongoing restructuring through trimming down its

loss-making businesses (fertiliser and telecom) and expanding its profit-making divisions (viscose, chemical and cement). Better earningsgrowth would also significantly improve return ratios at a consolidated level and trigger re-rating of the stock. 

 

Tactically, the inclusion of Grasim in Nifty 50 Index with effect from April 2, 2018, is also a re-rating trigger. We maintain our Buy recommendation with a revised price target of Rs. 1,480 (upward revision driven by lower share of Idea losses and strong demand in standalone VSF business).

12:01 PM

Markets @ Noon

S&P BSE Sensex	33,808.49		0.18%
Nifty 50	10,381.45		0.22%
S&P BSE 200	4,541.91		0.33%
Nifty 500	9,160.30		0.26%
S&P BSE Mid-Cap	16,406.97		0.63%
S&P BSE Small-Cap	17,907.94		0.11%

11:59 AM

NEWS IMPACT: Axis Bank trades flat; SFIO summons Shikha Sharma in PNB scam