MARKET WRAP: HDFC twins drag Sensex; AMC stocks fall on Sebi's TER order

Catch all the live market actions here.

3:44 PM

Sectoral trend on NSE

3:44 PM

BSE Sensex: Top gainers & losers

3:36 PM

MARKET UPDATE BSE Sensex slipped 169 points, or 0.5 per cent, dragged lower by HDFC Bank and HDFC that lost nearly 1.4 per cent each. NSE's Nifty50, on the other hand, ended 43 points, or 0.4 per cent lower.

3:00 PM

Primer Sebi has cut total expense ratio for MFs: Here's what this means for you

In a bid to make investing in mutual fund (MF) schemes cheaper, market regulator Securities and Exchange Board of India (Sebi) on Tuesday lowered the total expense ratio (TER) of MFs. The move is likely not only to make it easier for you to invest in MFs but also improve the returns. So, should you park more money in these funds now? READ HERE

2:44 PM

Dinesh Engineers sets IPO price band at Rs 183185; issue to open on Sep 28

Dinesh Engineers, a passive communication infrastructure provider firm, Wednesday said it has fixed a price band of Rs 183-185 per equity share for its initial public offering, through which it is estimated to raise Rs 185 crore.

 

The company's IPO will be open for public subscription on September 28 and close on October 3, it said in a statement. READ MORE

2:30 PM

Rising liquidity issues in ILFS credit negative for Indian banks: Moody's

Moody's Investors Service Wednesday said rising liquidity issues in ILFS, which has recently defaulted on repayment of Rs 100 crore, are credit negative for Indian banks.

 

The debts incurred by ILFS in the form of bank loans accounted for around 0.5-0.7 per cent of overall banking system loans as on March 31, 2018. READ MORE

2:21 PM

World Gold Council warns India against curbs on gold imports

India should not tamper with its gold import duty or impose other restrictions to support the rupee, the World Gold Council said on Wednesday, as the government considers ways to cut "non-necessary" imports to stem an outflow of dollars. READ MORE

2:19 PM

No taker yet for IL&FS Financial Services; high NPAs keep investors away

IL&FS Financial Services (IFIN), a subsidiary of beleaguered infrastructure financing company IL&FS put up for sale three weeks ago, has failed to find any taker as prospective investors are worried over its high bad debt and recent defaults. READ MORE

2:11 PM

NEWS ALERT JP Morgan's Pinakin Parekh: Continue to see steel production cuts in China. Globally, steel stocks are trading at low-single digit PE multiples.

2:09 PM

NEWS ALERT JP Morgan's Pinakin Parekh: Steel prices are holding on to highest levels since a decade. Seen large amount of de-stocking in base metals.

2:00 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,307.35	+16.68	+0.04
S&P BSE SENSEX 50	11,804.54	+5.02	+0.04
S&P BSE SENSEX Next 50	33,939.14	+59.08	+0.17
S&P BSE 100	11,573.66	+7.22	+0.06
S&P BSE Bharat 22 Index	3,584.83	+29.52	+0.83

(Source: BSE)

2:00 PM

NEWS ALERT JP Morgan: More impact of trade wars seen in financials so far

1:47 PM

More triggers needed for sugar rally; prices may remain under pressure

Stock prices of sugar companies have gained sharply after the government’s decision to hike ethanol price, a few days ago. Balrampur Chini, Bajaj Hindusthan, Shree Renuka Sugar, and Dhampur Sugar have all risen 13-57 per cent since the move.

 

The price hike for a by-product (ethanol) brought some relief to a sector struggling with cost pressures, even as sugar realisations are trending down. READ MORE

1:36 PM

Board of KIOCL approves buyback of shares up to Rs 214 crore

At meeting held on 18 September, 2018, the Board of KIOCL at its meeting held on 18 September 2018 has approved the proposal to buyback of not exceeding 1,25,88,235 equity shares (representing 1.98% of the total number of equity shares in the Paid-up share capital of the Company at a price of Rs. 170 (Rupees One Hundred Seventy only) per equity share (the 'Buyback Offer Price') of face value Rs.10 each, payable in cash for an aggregate consideration not exceeding Rs 214 crore.

1:29 PM

Usha Martin rallies after bidders express interest in buying co's steel biz

Shares of Usha Martin jumped nearly 9 per cent in the intraday trade on Wednesday after reports said five companies have expressed interest in buying Usha Martin’s steel business.

 

The five — JSW Steel, Tata Steel, Liberty House, Kalyani and Vedanta — have signed non-disclosure agreements (NDAs) in this regard, while they do their due-diligence. Once the offers are made, it would be evaluated by an independent committee set up by Usha Martin’s board of directors. READ MORE

1:13 PM

MCX rises after Sebi allows foreign investors to trade in commodity market

Shares of commodity exchange MCX (Multi Commodity Exchange of India) surged as much as 4 per cent in the intraday trade on Wednesday after the markets regulator Sebi approved a proposal to allow foreign investors to trade in commodity derivatives market. READ MORE

12:59 PM

India mulls raising import duty on steel to support rupee: Sources

India's steel ministry has proposed increasing the effective import duty on some steel products to 15 per cent from current rates ranging from 5 per cent to 12.5 per cent, according to two sources and a government document reviewed by Reuters, as the country looks to support the rupee. READ MORE

Metal stocks on the rise

12:46 PM

Kotak Securities on logistics sector

Freight rates, an indicator of broad-based demand, are suggesting a big uptick in economic activity happening in recent months. The improved economic activity will eventually reflect in higher GST collections, a positive for India’s infrastructure capex cycle. Enablers are also in place for a steady increase in tax compliance in the key transportation segment, further boosting the case for GST collections over time. The related transportation ecosystem is ripe for disruption by those having a network of customers/vendors and inspiring trust. Advantage L&T, Container Corporation and Mahindra Logistics

12:32 PM

Board of Electrosteel Steels to consider proposal of delisting

The Board of Electrosteel Steels will meet on 24 September 2018 to consider and approve Company has received a letter dated 18.09.2018 from Vedanta Star ('Acquirer'), wherein the Acquirer has expressed its intention to acquire up to 1961,67,342 equity shares of the Co. representing approx.10% of the paid up share capital of the Co. held by the shareholders of the Company (other than the Acquirer) at a price of Rs 9.54 per equity shares calculated in terms of the Resolution Plan approved by the Kolkata Bench of NCLT vide its order dated 17 April 2018. READ MORE

12:14 PM

Sebi pares IPO listing time to 3 days from 6, clears UPI as payment option

To boost fund raising from markets, regulator Sebi has decided to reduce the time to list shares on stock exchange after initial public offerings to three days from six days.

 

The board of Sebi Tuesday cleared a proposal to introduce Unified Payments Interface (UPI) as an alternative payment option for retail investors buying shares in an IPO. READ MORE

12:01 PM

Market at noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,411.56	+120.89	+0.32
S&P BSE SENSEX 50	11,838.82	+39.30	+0.33
S&P BSE SENSEX Next 50	34,105.31	+225.25	+0.66
S&P BSE 100	11,610.76	+44.32	+0.38
S&P BSE Bharat 22 Index	3,590.43	+35.12	+0.99

(Source: BSE)

11:47 AM

Responded to Sebi showcause notice, but no settlement offer: ICICI Bank

ICICI Bank and its Managing Director & Chief Executive Officer Chanda Kochhar have replied to a show cause notice for alleged violation of listing disclosure norms, said market regulator Securities and Exchange Board of India (Sebi).

 

On May 23, Sebi had issued a show cause notice to ICICI Bank and Chanda Kochhar for violating disclosure norms in connection with the conflict of interest in business dealings of Chanda Kochhar’s husband Deepak Kochhar with Videocon Group. READ MORE

11:30 AM

Foreign companies get Sebi nod to hedge in commodity derivatives

Sebi has clarified that hedging cannot be for a period longer than their physical market exposure. Foreign entities that don’t have exposure in India’s physical market will also not be allowed. READ MORE

11:15 AM

RBI has the reserves, if not the will, to prop up the sagging rupee

India’s central bank has enough reserves to defend the rupee, according to the State Bank of India and Nomura Holdings Inc., as the currency shrugged off the government’s supportive measures to plunge to a fresh record.

 

The Reserve Bank of India can sell an additional $25 billion, at least, in the foreign-exchange market, SBI estimates, based on intervention patterns since the 1990s. READ MORE

11:04 AM

Top gainers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
DCM SHRIRAM	448.50	25.85	6.12
8K MILES	261.25	12.40	4.98
MUTHOOT FINANCE	463.00	19.50	4.40
MONSANTO INDIA	3145.00	131.00	4.35
T N NEWSPRINT	297.00	11.65	4.08

10:59 AM

Kotak Securities on Mirc Electronics

MIRC is trading at 30.4x and 16x FY19E and FY20E earnings respectively. The stock's valuation is at a discount to peers in the consumer durables space. One of the reasons being weak earnings numbers in recent quarters. We remain positive on the consumer durables demand growth story in India and in view of the adequate upside to our unchanged target price of Rs 31 (at 18x FY20E), move rating to BUY (Accumulate earlier)

10:58 AM

IDFC Securities on Dr Lal Path Labs

With scale-driven efficiencies inherent in diagnostics business, we expect economic gains to increasingly get concentrated with select large players and create multi-year growth stories. We see DLPL as one of the winners, given its proven execution capabilities and profitable business model (FY21E ROIC ~89%). We initiate coverage on the stock with an Outperformer rating. Change in government regulations, mainly price caps, remains a key risk to the business

10:57 AM

Jefferies on consumer sector

Consumer staples have seen a sharp re-rating in the past 18 months, driven by gradual demand uptick from depressed levels. We believe the up-cycle has played out and see limited scope for earning upgrades and PE re-rating in the context of rising input costs (crude and currency led) and bond yields. Given stretched valuations, we expect de-rating over the next 6-12 months. We remain cautious on the sector with select buys, viz, ITC, Dabur, Nestle and Asian Paints.

10:56 AM

Nomura on steel sector

We expect Indian steel demand to grow at 5-7% over the next decade driven by large-scale infra spending and consumption growth. Steel capacity expansion in FY18-21F likely to be limited, which will likely saturate capacity in next 3-4 years, in our view. Already in FY19 we are seeing steel demand growing faster than GDP.

10:55 AM

Edelweiss on Whirlpool

We recently interacted with Whirlpool of India’s (WHIRL) top brass during the AGM and plant visit. Three highlights: 1) WHIRL continues to focus on plugging gaps in portfolio both organically (by launching a product every two months) and inorganically (Elica PB acquisition). 2) Focus on expanding presence in semi-urban/rural regions, which are outgrowing urban areas (50% of revenue). 3) Cost control via rationalisation of warehouses and commencement of direct dispatch.

Management aims to improve competitive positioning through aggressive branding & marketing, expansion of distribution network (targeting 33% jump) and cost control. All of this would improve market share in our view. Maintain ‘BUY’ with target price of Rs 1,915.