MARKET WRAP: Indices end at record high, Nifty above 11,550; Infy down 3%

Among individual stocks, Infosys fell nearly 3% after MD Ranganath, its chief financial officer (CFO), quit the IT major to pursue external opportunities.

3:41 PM

Nifty Metal index ends 2.5% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
WELSPUN CORP	141.90	126.30	15.60	12.35
NATL. ALUMINIUM	71.85	68.80	3.05	4.43
TATA STEEL	600.95	580.15	20.80	3.59
VEDANTA	222.25	215.20	7.05	3.28
HINDALCO INDS.	226.75	219.70	7.05	3.21

3:38 PM

Nifty sectoral gainers of the day

3:35 PM

BSE Sensex: L&T, Tata Motors, RIL among top gainers of the day, Infosys top loser

3:33 PM

Market at close

The S&P BSE Sensex settled at a record high of 38,279, up 331 points, while the broader Nifty 50 index closed at a new high of 11,552, up 81 points. In intra-day deals, the S&P BSE Sensex hit an all-time high of 38,340.69. The Nifty50 index, on the other hand, touched its record high level of 11,565.30.

3:19 PM

RIL, YES Bank, HUL, M&M, Bata India hit new highs

Shares of Reliance Industries (RIL), YES Bank, Mahindra & Mahindra (M&M) and Hindustan Unilever (HUL) from the S&P BSE Sensex hit a new highs on the BSE in intra-day trade after the benchmark index gain 1% on Monday. READ MORE

3:10 PM

Strong finances, low debt to cap sovereign risks from rupee fall: Fitch

A recent sharp sell-off in the rupee will have limited impact on India’s sovereign credit profile due to relatively strong external finances, especially the low level of external debt. But there could be further bouts of pressure as global monetary tightening progresses. READ MORE

2:57 PM

Top gainers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
HIND.CONSTRUCT.	14.84	2.01	15.67
S H KELKAR & CO.	218.10	17.40	8.67
WELSPUN CORP	137.30	10.75	8.49
PTC INDIA FIN	18.30	1.35	7.96
DIVI'S LAB.	1252.95	79.95	6.82

2:46 PM

Gold gains on bargain hunting; US-China trade talks in focus

Gold edged higher on Monday as investors found the metal attractive after prices fell to a 19-month low last week, while a rising dollar weighed on the market ahead of planned US-China trade talks.

 

Spot gold was up 0.2 per cent at $1,186.33 an ounce, after touching its lowest since January 2017 at $1,159.96 on Thursday. US gold futures were up 0.7 per cent at $1,191.60 an ounce. READ MORE

2:27 PM

Flows through the SIP route could moderate going ahead: Experts

The mutual fund industry has seen moderation in flows, but investments through the systematic investment plans (SIPs) route continue to remain intact.

 

Data available with the Association of Mutual Funds in India (Amfi) shows that SIP contribution in July stood at Rs 75 billion, which was 18 per cent higher than the 12-month average of Rs 64 billion. READ MORE

2:15 PM

Vadilal Industries hits 52-week low; stock tanks 20%

Shares of Vadilal Industries hit a 52-week low of Rs 588, down 20% on the BSE in intra-day trade on the back of heavy volumes in an otherwise strong market. READ MORE

2:03 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	38298.41	37947.88	350.53	0.92
	15608.01	15495.21	112.80	0.73
	16452.38	16306.44	145.94	0.89
	16914.22	16866.21	48.01	0.28
	4484.63	4449.66	34.97	0.79

1:45 PM

Opinion More uncertainty with rupee's slide

Last Tuesday, the commerce ministry said the trade deficit for July was estimated at a little above $18 billion, as against one of nearly $11.5 bn during July 2017. On the same day, the rupee depreciated to around 70 to a dollar, weakening by almost 1.9 per cent in only two trading sessions. READ MORE

1:30 PM

S&P places IDBI Bank's rating on credit watch with negative implications

Global rating agency Standard and Poor's has placed IDBI Bank's foreign currency issuer rating and unsecured debt under watch with negative implications due to uncertainty over the bank's ability to meet its regulatory capital requirement over next few months. READ MORE

1:17 PM

Indian equity market best performer among emerging economies this year

The Indian equity market continue to be the best-performing among emerging economies for 2018 despite the rupee weakening to 70 against the US dollar. The benchmark index, S&P BSE Sensex, is up 11 per cent in local currency terms and 1.4 per cent in dollar terms this year. READ MORE

1:05 PM

INDEX WATCH

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	11549.50	11470.75	78.75	0.69
	9837.70	9770.20	67.50	0.69
	19583.50	19443.00	140.50	0.72
	7549.85	7522.50	27.35	0.36
	13.19	13.16	0.03	0.23

1:05 PM

Gitanjali Gems, Amtek Auto locked in 5% lower circuit on trade suspension

Shares of Gitanjali Gems and Amtek Auto are locked in the lower circuit of 5% after the BSE and NSE announced the suspension of trading in shares of nine firms including these two from September 10, 2018. The suspension is for not complying with listing norms pertaining to submission of financial results. READ MORE

1:03 PM

HEAT MAP (BSE)

1:00 PM

Anand Rathi on Indoco Remidies

We believe Indoco’s Europe (EU) and US revenue would be hit in FY19 by regulatory issues on its plants. However, post-resolution, we expect a gradual step-up in its earnings. Therefore, we retain our Hold recommendation on the stock, and lower our target price to Rs 210

12:59 PM

SECTOR WATCH Kotak Securities on banks

We believe that it is still too early to make any assessment of the impact of the recent floods in Kerala, a state that contributes ~3% to total loans. The four key banks to watch would be Dhanlaxmi Bank, South Indian Bank, Catholic Syrian Bank and Federal Bank which are highly dependent on this state. PSL dominates loans from this state making it susceptible to restructuring but high share of gold loans as collateral offers comfort

12:56 PM

Nomura downgrades NBCC

Despite the correction (~40% YTD), we think the share price reflects underlying concerns on execution. We continue to value NBCC at 25x FY20F EPS of Rs 3.3 to account for long-term growth visibility and arrive at a target price of Rs 82, implying ~13% upside, and hence we downgrade to Neutral; we prefer L&T (LT IN Buy). Key upside risk is resolution of stalled projects while further slippage in execution and commercial monetisation are key downside risks

12:53 PM

Anand Rathi on Ahluwalia Contracts

Q1 was muted as there was slower than expected movement on a couple of projects, for varying reasons. However, its recent strong order accretion and as projects that faced issues in Q1 get going, we see Ahluwalia set for healthy growth in the foreseeable future. While stiff competition are points of caution, we are positive on the appealing return ratios, a healthy balance sheet and healthy revenue assurance, which drive us to maintain our Buy on the stock

12:47 PM

Page Industries hits new high of Rs 35,049; stock zooms 52% in 3-months

Shares of Page Industries,which hit a new high of Rs 35,049, up 3% on the BSE, is set to touch market capitalisation (market-cap) of Rs 400-billion mark. READ MORE

12:33 PM

FPI stake in top 200 stocks drops to four- year low in June quarter

Foreign portfolio investor (FPI) ownership in top 200 companies dropped to a four-year low during the June 2018 quarter. FPIs’ holdings in BSE200 companies fell to 23.8 per cent, down 80 basis points (bps) compared to the March 2018 quarter. READ MORE

12:15 PM

WEB EXCLUSIVE Ranganath's exit from Infosys can puncture stock's momentum, say analysts

 

Problems, it seems, have a way of finding Infosys. Just when the company was stabilising after the high profile exits of Vishal Sikka, their managing director and chief executive and Vishal Dadlani, its Americas head and global head of manufacturing and retail in 2017, Infosys’ chief financial officer M. D. Ranganath decided to leave the company.

 

The exit, which was announced on Saturday, triggered a knee-jerk reaction in the stock that slipped around 4 per cent in intra-day trade once the markets opened for trade on Monday to Rs 1,373 levels on the NSE. It, however, recovered partially as trade progressed. READ MORE

12:00 PM

Markets at noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,235.11	+287.23	+0.76
S&P BSE SENSEX 50	12,085.37	+77.83	+0.65
S&P BSE SENSEX Next 50	34,327.47	+290.52	+0.85
S&P BSE 100	11,827.42	+79.77	+0.68
S&P BSE Bharat 22 Index	3,637.50	+35.41	+0.98

11:45 AM

Kerala floods to hurt one in five BSE500 cos; Tyre firms may be hit hardest

 

As ferocious floods hit life in Kerala, India Inc too is unlikely to remain unharmed. A look at the exposure of Indian companies to the state suggests that at least one in five BSE500 companies is likely to be impacted due to the floods, which could in turn have a bearing on their September quarter (Q2) results.

 

The impact and its longevity, however, is yet not known but experts say among the sectors most impacted are tyre and automobile, which are the first in line given Kerala’s monopoly in the rubber industry. READ MORE

11:30 AM

Top Nifty50 gainers

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
LARSEN & TOUBRO	1309.35	1240.15	69.20	5.58	6034503
TATA MOTORS	266.10	258.25	7.85	3.04	8492860
O N G C	167.90	163.05	4.85	2.97	5387141
COAL INDIA	287.35	281.40	5.95	2.11	1330484
H P C L	272.50	267.55	4.95	1.85	1684145

11:15 AM

Focus on steel sector closely

 

The inflation data for July showed that the Consumer Price Index (CPI) has moved up by 4.17 per cent year-on-year (YoY) versus July 2017. This is lower than the 4.92 per cent YoY change for June 2018. If inflation is moderating, there are good chances that the RBI will not hike rates in its next policy review.

 

That’s good for the financial sector, and for businesses that are capital-intensive. However, the ‘headline’ overall number is deceptively low. Food is a key component of the CPI basket, with a weight of around 45 per cent. READ MORE

11:00 AM

Should NSE be allowed to file 'Consent Terms'?

 

Stock exchanges in India are both regulators and regulated entities. In regulatory parlance, stock exchanges are the first line of regulators.

 

The website of the National Stock Exchange (NSE) says “in its role of a securities market participant, NSE is required to set out and implement rules and regulations to govern the securities market…NSE has a set of Rules and Regulations specifically applicable to each of its trading segments. NSE as an entity regulated by SEBI undergoes regular inspections by them to ensure compliance.” READ MORE

10:45 AM

Margin woes crash two-wheeler makers' 'joy' ride, stocks take a beating

 

Two-wheeler stocks have been the biggest underperformers in the auto pack and have shed between 7.5 per cent and 15 per cent over the last month, in contrast to the 4 per cent gains for the broader markets. Analysts say the trend may not change given the pressure on margins due to firm input costs, high competitive intensity and price discounting strategy of some players. READ MORE