MARKET WRAP: Sensex falls 509 pts, Nifty at 11,287 as rupee hits fresh low

In the broader markets, both S&P BSE MidCap and S&P BSE SmallCap ended 1.4 per cent lower.

3:53 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

The bears continued to dominate on Tuesday, as the Indian equity benchmark indices fell sharply for second straight session. A continued sharp fall in rupee to a new record low (vs USD), firm crude oil prices and weak global cues impacted the sentiments on the domestic bourses and dragged the Nifty index down to an intra-day low of 11,274 before it closed the session at 11,288 levels. 

With lack of any positive triggers on the domestic bourses and ongoing global uncertainties, weakness in market could continue in the coming sessions. The near-term direction will be dictated by key domestic macro data like July IIP, Aug CPI (due Wednesday) & Aug WPI (due on September 14). Further, the strengthening crude oil prices, weakening INR (vs USD), widening CAD and mounting tensions over trade war is certainly a worrisome factor for the Indian market and could continue to induce high volatility in the index. We advise investors and traders to remain selective in stock picking

3:43 PM

Nifty FMCG index ends 2.4% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
GODREJ CONSUMER	1248.25	1298.10	-49.85	-3.84	1462477
ITC	297.20	306.55	-9.35	-3.05	25990181
UNITED SPIRITS	578.30	595.20	-16.90	-2.84	1961814
TATA GLOBAL	216.00	222.00	-6.00	-2.70	3504972
JUBILANT FOOD.	1353.30	1390.55	-37.25	-2.68	1061089

3:41 PM

Here's how the sectoral indices on NSE performed today

3:40 PM

BSE Sensex: Power Grid, Tata Steel top losers of the day

3:34 PM

Markets at close

The S&P BSE Sensex shut shop at 37,413.13, down509.04 points or1.34 per cent while the broader Nifty50 index of National Stock Exchange settled 150.60 points or 1.32 per cent lower at11,287.50. 

3:11 PM

NEWS ALERT Rupee hits fresh lifetime low of 72.72 per dollar

3:05 PM

Will not let manipulators cash in on market volatility: Sebi

Market regulator Securities and Exchange Board of India (Sebi) Tuesday warned that the manipulators will not be allowed to take advantage of the volatility in the stock market. READ MORE

2:55 PM

Unilever single holding company shares to start trading in December

Consumer goods giant Unilever said simplifying its parent company structure from two UK and Dutch legal entities into a single holding company would conclude in December, when shares in the new firm would start trading.

 

The Anglo-Dutch maker of Dove soap, Lipton teas and Ben & Jerry's ice cream said the simplification would be achieved through a UK scheme of arrangement and a Dutch legal merger. READ MORE

2:45 PM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
POWER FIN.CORPN.	81.50	-6.95	-7.86
MAX FINANCIAL	473.10	-31.30	-6.21
MAHINDRA CIE	279.35	-18.45	-6.20
SWAN ENERGY	150.10	-9.30	-5.83
CHOLAMAN.INV.&FN	1309.05	-77.95	-5.62

2:31 PM

Once-in-a-life deals fuel $100-billion mergers-and-acquisitions boom

The biggest mergers-and-acquisitions (M&As) boom in Indian history has investment bankers preparing for even more deal-making to come. Transactions involving Indian companies have reached $104.5billion in 2018, trouncing the previous annual record, with almost four months left in the year, according to data compiled by Bloomberg. The tally may surpass $100 billion again in 2019, said Sanjeev Krishan, a Gurgaon-based partner at PwC India, who focuses on private equity and deals. READ MORE

2:14 PM

Amidst falling rupee, RBI adds another 6.8 tonnes of gold to forex reserves

The Reserve Bank of India (RBI) has found solace in gold as its foreign currency reserves are concerned. In July, the central bank added another 6.8 tonnes of gold to its forex reserves which are the highest monthly addition to the reserves so far after 2009. READ MORE

1:59 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,765.74	-156.43	-0.41
S&P BSE SENSEX 50	11,918.44	-57.22	-0.48
S&P BSE SENSEX Next 50	34,197.05	-67.93	-0.20
S&P BSE 100	11,681.86	-51.01	-0.43
S&P BSE Bharat 22 Index	3,601.90	-18.58	-0.51

(Source: BSE)

1:48 PM

Global market check

INDEX	DATE	LATEST	PREV CLOSE	CHG(PTS)	CHG(%)
HANG SENG	10-09-2018	26613.42	26973.47	-360.05	-1.33
SHANGHAI COMPOSITE	10-09-2018	2669.49	2702.31	-32.82	-1.21
MERVAL	11-09-2018	29455.22	29811.22	-356.00	-1.19
TAIWAN WEIGHTED	10-09-2018	10725.80	10846.99	-121.19	-1.12
NZX 50 INDEX	10-09-2018	9048.63	9095.39	-46.76	-0.51

1:44 PM

Global markets update

 

Hong Kong's benchmark index Hang Seng slips into bear market; falls 20% from January high

1:35 PM

Unlisted companies have to issue new shares in demat form from Oct 2: Govt

Unlisted public companies have to compulsorily issue new shares in demat form beginning October 2, the government said Tuesday. Besides, transfer of shares has to be done only in the demat or electronic form.

This step has been taken for "further enhancing transparency, investor protection and governance in the corporate sector," the Corporate Affairs Ministry said in a release. READ MORE

1:26 PM

Market outlook by Sharekhan

Long-term outlook on Indian equities continues to remain positive and we feel that any correction should be used to buy into quality companies with strong earning visibility and future growth potential. We like HDFC ltd in Financial space and L&T in capital goods & engineering space. One can accumulate quality stocks in tranches.

1:25 PM

Will Bank of England (BoE) hike rates on Thursday?

We expect the Bank of England to keep Bank rate at 0.75% in a unanimous vote on Thursday. This is the consensus view as well and the GBP OIS curve implies a 0% chance of a rate hike. After raising rates in August, the MPC will now be in wait-and-see mode while putting emphasis on the risk of further tightening should there be an inflationary no-deal Brexit.

Even though Brexit ‘shouldn’t handicap policy making’, the MPC will nonetheless only start thinking about raising rates again when it has a better idea of what Brexit will look like. We view May 2019 as the first realistic opportunity for the MPC to raise Bank rate to 1.00%.

(Source: Rabobank International note)

1:23 PM

HDFC Securities on Ramkrishna Forgings (RMKF)

Management expects strong traction in CVs sales and the new axle load norms to  help post double digit volume growth to >140-145k tons in FY19E vs 122k in  FY18  (65%  domestic  and  35%  exports).  We  expect  RMKF to register Revenue/PAT  CAGR  of 17/24% over FY18-21E on the back of a robust domestic CV  cycle,  market  share gains, increased content per truck (via producing new  components)  and favourable operating leverage. However new capex will result  in  higher interest/depreciation) cost and limit free cash flow. We value the stock Rs 908 (18x Sept-20E EPS) and recommend a BUY

1:22 PM

Antique Stock Broking on Dr Reddy's

The company has identified core areas of growth: a) given the company's legacy strength in complex APIs, it is likely to intensify efforts in complex generics and develop dossiers for world markets. Focus will remain squarely on oral solids and injectables; b) double the number of marketed molecules in US in the coming years; c) capitalize on the first-mover advantage in China and increase the filing tempo; d) break into top-10 league in India; and e) keep enhancing the compliance processes at Dr.Reddy's plants by introducing global best practices. Maintain BUY with a revised target price of Rs 2,950 based on 21x Sep'20 earnings.

1:21 PM

Prabhudas Lilladher on capital goods sector

Corporates believe awarding activity/momentum is likely to stay for next 2-3 quarters as government tries to award increased number of projects with an eye on elections. The fact that government is in the last year of its current term in our view will expedite execution to show case their achievement. Most corporates continue to be confident of medium-term growth prospects, given the various initiatives taken by the government.

Being on the cusp of a change, we prefer companies with sustainable competitive advantage and those which can deliver sustained earnings growth over the next few years. Our preferred picks are L&T, Voltas, Cummins India, Crompton Consumer and Bharat Electronics.

1:19 PM

Edelweiss on Indian Hotes

Indian Hotels Company’s (IHCL) FY18 annual report indicates robust growth in standalone profitability over FY16-18. While EBITDA of key domestic subsidiaries (Roots Corp, Piem, Benares Hotels) declined YoY, that of key domestic JVs (Taj GVK Hotels, Taj SATS Air Catering) reported strong improvement. International operations (led by US) continued to incur losses and are a drag on consolidated profitability.

Other takeaways: 1) IHCL (standalone) infused additional Rs 0.5bn capital in the overseas arm towards loss funding; 2) standalone trade receivables days rose further to 33 (FY17: 28, FY16: 24); 3) deposits with government authorities (standalone) surged to Rs 944mn (FY17: Rs 551mn); 4) goodwill stood at Rs 5.6bn (~14% of net-worth; FY17: Rs 5.5bn); and 5) contingent liability towards taxes jumped to Rs 4.4bn (FY17: Rs 2.8bn).

1:17 PM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
MAX FINANCIAL	481.60	-22.80	-4.52
ASHOKA BUILDCON	131.50	-5.00	-3.66
SWAN ENERGY	153.60	-5.80	-3.64
HIMADRI SPECIALT	124.20	-4.50	-3.50
PHILLIPS CARBON	228.95	-7.15	-3.03

1:05 PM

Strong successor taking up the top job could improve Axis Bank fortunes

The Street gave thumbs up to the stock of Axis Bank, India's third-largest private sector bank, following its announcement that Amitabh Chaudhry would succeed Shikha Sharma as its head. In fact, Axis was the only one among frontline banking stocks to end in the green, with a gain of one per cent on a day when the broader indices shed over 1.2 per cent. READ MORE

12:54 PM

NEWS ALERT

HCL Tech share buyback offer to open on September 18, close on October 3

12:45 PM

Saksoft hits new high on credit rating upgrade; stock surges 14%

Shares of Saksoft have rallied 14% to Rs 343 per share, extending their 6% gain on the BSE in the past two days, after the rating agency CARE Rating upgraded the long-term bank facilities of the company with a positive outlook. The stock of information technology (IT) software products firm was trading at its 52-week high level on the BSE. READ MORE

12:31 PM

GAIL on strong wicket aided by robust LNG demand, share price may rise

GAIL's share price has risen 24 per cent from a May low, on the back of multiple triggers. Rising natural gas prices have eased concern on placement of higher-priced liquefied natural gas (LNG) cargoes from the US. READ MORE

12:18 PM

COMMENT  Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI

The recent rupee depreciation with the rising crude oil prices has made the headlines and created anxiety. The rupee decline in consonance with rising crude has made a significant impact on domestic petroleum and diesel prices. This windfall gain will have positive impact on State finances, which might push down the states fiscal deficit by 15-20 bps, other things remaining unchanged.

We also estimate that since the states are having an incremental revenue over the budgeted one, they could cut on an average petrol prices by Rs. 3.20 /litre and diesel by Rs. 2.30/ litre, without affecting their revenue arithmetic, States like Maharashtra, Madhya Pradesh, Punjab, Tamil Nadu, Andhra Pradesh, Rajasthan and Karnataka have the privilege to cut petrol prices by at least Rs. 3 from their existing rates and Rs. 2.5 on diesel. We heartily welcome that Rajasthan and Andhra Pradesh have already pared rates.

12:15 PM

MUST READ This pharma stock zooms over 100% in five weeks

 

Shares of Albert David hit a new high of Rs 830, up 10%, surging more than 100% in past five weeks in otherwise weak market. The stock of pharmaceutical company zoomed 103% from Rs 408 on August 7, as compared to 0.58% rise in the S&P BSE Sensex.

 

Albert David had reported a net profit of Rs 78.4 million in June quarter against a net loss of Rs 8.30 million during the same quarter last fiscal. Operation income of the company increased 73% to Rs 944 million from Rs 546 million in previous year quarter. READ MORE

12:00 PM

Markets at noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,809.37	-112.80	-0.30
S&P BSE SENSEX 50	11,935.39	-40.27	-0.34
S&P BSE SENSEX Next 50	34,255.10	-9.88	-0.03
S&P BSE 100	11,698.83	-34.04	-0.29
S&P BSE Bharat 22 Index	3,606.88	-13.60	-0.38

11:47 AM

10 yrs of Lehman collapse: How a crisis snowballed into a global meltdown

The first tremors of the global financial crises could perhaps be traced back to when the Federal Home Loan Mortgage Corporation (Freddie Mac) said in February 2007 that it would no longer buy risky subprime mortgages, nor would it invest in related securities. READ MORE