Brokers trade at their computer terminals at a stock brokerage firm in Mumbai.
The Indian markets ended over half a per cent higher on Friday, lifted by financial stocks, while volatility index, India VIX, dipped 4 per cent to below 20 levels.
The S&P BSE Sensex gained 214 points, or 0.56 per cent, to 38,435 levels, and the Nifty50 index ended above the 11,350-mark at 11,372, up 59 points or 0.53 per cent. NTPC (up over 4.5 per cent), Asian Paints (up over 4 per cent) and Power Grid (up over 4 per cent) were the top Sensex gainers. Asian Paints hit a record high of Rs 1,971 during the day. The stock settled at Rs 1,958.35 on the BSE.
On a weekly basis, Sensex gained 1.47 per cent while Nifty added 1.72 per cent.
On the flip side, ONGC (down over 1 per cent), Bharti Airtel (down 1 per cent), and Tata Steel (down nearly 1 per cent) were the biggest losers on the index.
Among other individual stocks, GMM Pfaudler surged over 8 per cent in early deals after it said it has acquired a 54 per cent stake in its parent firm Pfaudler Group for a consideration of around $27.4 million.
The trend among Nifty sectoral indices was positive, led by Nifty PSU Bank index, up 1.8 per cent.
Meanwhile, the broader markets kept up their outperformance. The S&P BSE MidCap index ended at 14,954, up 0.57 per cent while the S&P BSE SmallCap index ended at 14,625.19, up nearly 1.5 per cent.
China stocks ended higher on Friday and posted a weekly rise, as investors cheered a series of solid corporate earnings, though uncertainty over Sino-US trade talks kept a check on gains. The blue-chip CSI300 index rose 0.9 per cent, to 4,718.84, while the Shanghai Composite Index added 0.5 per cent to 3,380.68.
In Europe, shares edged higher after data showed Germany’s manufacturing sector rebounded further in August, but gains were capped as overall recovery in euro zone business activity stalled.
Oil prices edged lower but held near a five-month high as an easing of coronavirus lockdowns aids a slow recovery in fuel demand while major crude producers seek to limit supply.
MARKET COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services
Indian indices had a strong opening and inspite of volatility held onto some of the gains, supported by positive global cues. The broader market indices performed better than the benchmarks. Overnight gains in US Tech shares, in spite of underwhelming economic data in the US, helped global markets. Domestically, more hopes arose regarding normalisation of businesses and affected sectors, as the government continued with the “unlock” process.
Markets were up by almost 1.5% on a weekly basis. Expectations and remarks from Central Banks, especially from the US Fed, drove global markets this week.
Indian markets are showing strong correlation with the global markets. The markets, globally, are currently running on hope and liquidity. The expectation of economic activity picking up and earning normalising will have to translate into reality or at least show signs of it, for the markets to sustain the current momentum. Until then investors are advised to remain cautious while trading and remain stock specific.
The BSE-30 Index gained 1.6 per cent in the current week. Market mood remained volatile over the past week as participants grappled with the pace of economic recovery. NTPC, Tata Steel and ONGC were among the top gainers while State Bank of India, Mahindra & Mahindra and Axis Bank were major losers in the BSE-30 Index.
Action has shifted to mid and small cap indices. Metals and Power stocks have done well in this week. On the economy front, trade deficit for July was at US$4.8 bn against a surplus of US$0.8 bn in June; July exports fell by 10.2 per cent YoY while imports fell by 28.4 per cent YoY. FPIs bought equities worth US$1.9 bn over the past five trading sessions while DIIs sold US$368 mn worth of equities in the same period.
PSBs gain; All the 12 constituents of the PSU Bank index end in the green
Metal index ends as top loser on NSE; 10 out of 15 constituents end in the red
BSE Snapshot at Close
Sectoral trends on NSE at Close
Sensex Heatmap at Close
Closing Bell | Indices end off day's high
>> The S&P BSE Sensex ends at 38,435, up 214 points or 0.56 per cent. The index hit intra-day high of 38,579.83
>> NSE's Nifty ends at 11,377, up 65 points or 0.57 per cent. The index's intra-day high was 11,418.5
Oil check :: Motilal Oswal Financial Services
Oil is set for a third weekly gain in New York on nascent signs of a demand recovery, but the pandemic is continuing to cloud the outlook while concerns are rising about over-supply. US Future is up 0.2%. #MOMarketUpdates
Asian Markets Wrap :: Motilal Oswal Financial Services
Asian market gained after progress on a Pfizer Inc. vaccine and potential U.S.-China trade negotiations boosted investor sentiment. Nikkei Index gained 0.2%. Both China and Hong Kong gained 1% each. #MOMarketUpdates
US Court reduces $280 mn punitive damages in TCS-Epic Systems case
The US Court of Appeals, 7th Circuit, Chicago, returned a verdict on the appeal filed by TCS, reducing the damages award. The court held that the punitive damages award of $280 million is constitutionally excessive and directed the Trial Court to reassess them. READ MORE
SECTOR CHECK :: Metals, ITs reverse gains
MARKET CHECK :: Indices cooling off a bit
AGR Case :: Spectrum is recognized as an asset, it is the most valuable asset with telcos, says Kipal Sibal for Airtel
>> Spectrum is taken as security by the lenders.
>> If SC refuses to recognise the sale of spectrum, banks will stop lending to telcos, will grievously hurt the telecom sector
AGR Case :: SC holding that spectrum can't be sold, will not help recover AGR dues, says Salve for RComm CoC
>> If spectrum sale is not allowed, Spectrum will be returned to DoT, auctioned for future use, wont help recover AGR.
>> Issue of sale of spectrum should be left to NCLT
HDFC twins contribute the most to today's gain in Sensex
NEWS ALERT :: YES Bank executes definitive agreement for sale of 100% equity shareholding of YES Asset Management, YES Trustee
GAIL: Demand, fertiliser plants, city-gas distribution to drive earnings
Domestic gas demand has rebounded to pre-Covid-19 levels now as reflected in GAIL’s stock prices. The country’s largest state-owned gas processor and distributor has seen its stock prices surge 25 per cent from May lows. Though the June quarter performance reported last week disappointed the Street, prospects are nevertheless improving for the company. READ MORE
STOCK ALERT :: Asian Paints hits record high
AGR Case :: Videocon RP concludes arguments
>> AGR dues for Videocon is pegged at Rs 1,376 cr
Alert: RP is resolution professional
AGR Case :: We are not liable to pay anything beyond the CIRP process, says Videocon counsel
>> AGR dues will be addressed as operational dues under the IBC Process
>> Waterfall mechanism will have to be followed as per IBC.
AGR Case :: As per trading guidelines, past dues need to be paid before transfer of spectrum, observes SC
>> If you don't pay, Bharti, who acquired Videocon spectrum, will have to pay
BUZZING SOTCK:: Jubilant Life Sciences gains 4%
Indian PSBs face fresh capital shortages as coronavirus bites: Moody's
The most likely source of capital to plug these capital shortfalls is the government, despite its completion of a large recapitalisation just a few months ago. READ MORE
GMM Pfaudler, IndiaMART: 70% of Nifty500 stocks trade above their 200-DMA
The 200-day moving average (DMA) is widely acknowledged as an indicator to determine the overall trend by market participants. Simply put, this average assists in identifying a bullish and bearish sentiment for an index or a stock. One can even consider taking a medium-to-long term position in an index or a stock with the help of 200-DMA. READ MORE
Rupee ends higher at 74.84/$ vs Thursday's close of 75.03 against the US dollar
Va Tech Wabag rallies 20% as Co's board to consider fundraising next week
For the quarter ended March 2020, Va Tech Wabag reported profit before tax (PBT) of Rs 45.23 crore, up 186 per cent against Rs 15.82 crore in the March 2019 quarter. Revenue from operations stood at Rs 785.06 crore, up 15.5 per cent against Rs 679.25 crore in the year-ago period. The net profit of the company came in at Rs 30.47 crore, down 25.2 per cent against Rs 40.77 crore in June 2019 quarter. READ MORE
MPC minutes show panel's hawkish turn on inflation, sovereign bonds decline
The yield on the new 5.77% 2030 bond rose five basis points to 6%, after gaining 18 basis points in the previous two weeks. Traders are watching for demand at Rs 300 billion bond sale on Friday after last week’s auction of the new benchmark 10-year paper had to be rescued by underwriters. READ MORE
Kamath committee recommendations will be out by September 6: RBI Governor
The guidelines on the KV Kamath committee recommendations will be out by September 6, Reserve Bank of India (RBI) governor Shaktikanta Das said in a television interview on Friday. READ MORE
European indices trade with slim gains in early deals
Sanofi India gains 5%, hits 52-week high; stock soars 8% so far in August
For June quarter, the company reported a net profit of Rs 136.3 crore as against a net profit of Rs 97.4 crore for the corresponding period of the previous fiscal. Revenue from operations stood at Rs 710.5 crore for the quarter under consideration. It was Rs 747.9 crore for the same period year ago, it added. READ MORE
Market share, valuation: 5 reasons why CLSA is bullish on SBI amid Covid-19
India's largest public sector bank, State Bank of India (SBI), is firming its position as analysts' favourite in the banking sector amid the Covid-19 pandemic. Despite the potential instability in the financial sector due to fear of spurt in non-performing assets (NPA), global brokerage CLSA sees SBI as "a deep value opportunity", as it believes the bank is relatively better positioned on asset quality post Covid-19, and is driven by high government / PSU share in loan book. READ MORE
V-Mart Retail gains in trade; stock advances 26% in three sessions
Shares of V-Mart Retail advanced over 16 per cent to Rs 2,250 on the BSE on Friday as compared to around 1 per cent rise in the benchmark S&P BSE Sensex. At 12:16 PM, the stock was trading nearly 13 per cent higher at Rs 2,178. With today's rally, the stock has gained 25.8 per cent in three sessions. For the quarter ended June 2020, V-Mart reported a loss of Rs 33.64 crore as against net profit of Rs 17.60 crore during the previous quarter ended June 2019. Sales declined 82.77 per cent to Rs 78.06 crore during the period as against Rs 453.05 crore in the year-ago period. READ MORE
NEWS ALERT :: NCLT Mumbai allows initiation of bankruptcy proceedings against Anil Ambani over Rs 1,200 cr personal guarantee to SBI
>> Sec 60(2) clearly provides for proceedings to be launched Vs personal guarantors, running parallel to CIRP
>> Fallacious to assume that no action can be taken against guarantors until Resolution Plan accepted
>> RP to be appointed, SBI to take necessary action
(Via CNBC TV18)
Expert View :: Yash Gupta, Equity Research Associate, Angel Broking on Max Health
Listing of Max Healthcare Institute Ltd - Max Healthcare and Radiant merged their healthcare business to create the second largest healthcare chain in India by revenue after Apollo Hospitals. Max Healthcare will be led by Abhay Soi and backed by KKR&Co., who are well known as a global investment company. Revenue for the merged entity for FY 2020 is 4,026 Crores and it will be the second largest private hospital chain after Apollo Hospitals. Currently Max Healthcare has 17 Facilities with total bed capacity of 3,400 with Major facilities in the NCR region. Abhay Soi and KKR will be the promoters of Max Healthcare with controlling stakes of 52% and 23.3% respectively. We expect Max Healthcare to do well under the leadership of Abhay Soi and KKR
BUZZING STOCK:: Whirlpool of India zooms 6%
Centre turns down Sebi request to tap phones in insider trading cases
The Centre has rejected the Securities and Exchange Board of India’s (Sebi’s) proposal for being granted the powers to tap phone calls to book those doing insider trading. The government authority concerned is learnt to be of the view that access to the details of phone calls should be used in only cases such as threats to national security, terror financing, and money laundering. READ MORE
Don't see much upside in mid, smallcaps from here: Vinay Khattar, Edelweiss
"The broader market which consists of mid and large-cap segments began to suffer beginning 2018 given developments such as the IL&FS crisis, broader macroeconomic structure, among others. Now, after two years, markets have rebounded strongly. That said, we believe mid and small-caps have reached reasonable valuations post this rally and we don't see much upside, except in sector-specific plays like the diagnostics, information technology (IT) and pharma, and the sectors where government policies have been announced," Khattar said. READ MORE
Strides Pharma shares zoom 8% on US FDA approval for Ursodiol tablets
Shares of Strides Pharma Science rose 8.16 per cent to Rs 614.65.on the BSE on Friday after the company received the approval of US health regulator (US FDA) for Ursodiol Tablets used for treatment of patients with primary biliary cirrhosis (PBC). PBC is a progressive disease of the liver caused by a buildup of bile within the liver that results in damage to the small bile ducts that drain bile from the liver. READ MORE
BROKERAGE VIEW::Geojit Financial Services on Cochin Shipyard
RATING: BUY | TARGET PRICE: Rs 445
Given improvement in order book visibility, capacity expansion and strong execution capabilities, we continue to maintain our positive view on the stock. We
value CSL at a P/E multiple of 10x on FY22E with a target price of Rs445 and maintain BUY rating.
Mid- and small-cap funds outperform large-caps in three months
Small- and mid-cap funds have started to outperform large-caps, providing some relief to mutual fund (MF) investors who were holding onto their investments despite the prolonged period of underperformance. Over a three-month period, small-cap funds are up 37.9 per cent, while mid-cap funds fetched returns of 29.9 per cent, showed data from Value Research. READ MORE
BROKERAGE VIEW:: ICICI Securities on HealthCare Global Enterprises
We factor in impact of COVID-19 in our estimates and hence, cut our revenue/EBITDA estimates by 6-13/10-26%. However, we raise target EV/EBITDA to 13x from 11x as the balance sheet strengthens with falling leverage which was the key overhang on valuations. Maintain BUY with a revised target of Rs 156/share based on 13xFY22E EBITDA (earlier: Rs148).
Key downside risks: Higher competition in oncology, and delay in operational turnaround of new centres.
Should you buy Divi's Lab, SBI Life before they enter Nifty50 in September?
Bharti Infratel and Zee Entertainment will make way for SBI Life Insurance and Divi's Laboratories in the benchmark index Nifty 50 from September 25, NSE Indices, a subsidiary of the National Stock Exchange, said on Thursday. Changes have been made in several indices, including Nifty 500, Nifty 200, Nifty 100, Nifty Midcap 150, Nifty Midcap 100, Nifty Midcap 50, Nifty Smallcap 250, Nifty Smallcap 100 and Nifty Smallcap 50 and host of sectoral indices like energy, MNC commodities and services sector. READ MORE
Max Healthcare freezes at 5% upper circuit, debuts at Rs 112 on the BSE
Shares of Max Healthcare Institute listed at the bourses at Rs 112 per share -- at Rs 112.3 on the BSE and Rs 111.7 on the NSE -- on Friday. The shares were locked in the 5 per cent upper circuit band with a combined 0.82 million shares changing hands within the initial minutes of trade. In June, Max India informed the exchanges that the National Company Law Tribunal (NCLT) had approved the composite scheme of merger and demerger which involved a merger of the healthcare assets of Max India into Max Healthcare and demerger of the residual businesses of Max India into Advaita, a wholly-owned subsidiary of Max India. READ MORE
BUZZING STOCK:: IDBI Bank hits 10% upper circuit
Chris Wood hikes gold price target, sees yellow metal at $5,500/ounce
The earlier price forecast, Wood wrote in his weekly note to investors GREED & fear, was based on adjusting the gold price for US per capita disposable income that was invested in gold when the price of the yellow metal hit its peak of $850/oz during the last secular bull market in January 1980. READ MORE
Shares of Divi's Laboratories and SBI Life Insurance rallied on Friday, a day after the NSE Indices, a subsidiary of the National Stock Exchange (NSE) announced that both the stocks will enter the benchmark index Nifty50 from September 25, 2020. The stock of Divi's Laboratories hit an all-time high of Rs 3,331 in the early trade, up nearly 4.5 per cent against Thursday's close of Rs 3,189.30 with the market capitalisation (m-cap) nearing Rs 90,000 crore. READ MORE
GMM Pfaudler surges 8% on acquiring majority stake in parent firm
Shares of GMM Pfaudler rose as much as 8.18 per cent to Rs 6,360 on the BSE on Friday after the process equipment manufacturer acquired a 54 per cent stake in its parent firm Pfaudler Group for a consideration of around $27.4 million. GMM, which supplies process equipment to pharmaceutical and chemical industries, has signed definitive agreements to acquire a majority stake in Pfaudler Group from the private equity firm Deutsche Beteiligungs AG Fund VI (DBAG) for the stake. READ MORE
Future Group stocks rally on report Co may merge subsidiaries; RIL adds 1%
Once the merger is complete, Reliance Industries will be investing Rs 8,500 crore in the merged entity, resulting in the Mukesh Ambani-led conglomerate owning close to 50 per cent in it. READ MORE
Rupee opens higher at 74.97/$ vs Thursday's close of 75.03 against the US dollar
NEW LISTING :: Max Healthcare Institute
Volatility index, India VIX, dips 4% to below 20-mark
>> The board of Future Enterprises Ltd (FEL) is likely to discuss on Saturday the proposal to merge other listed group entities, such as Future Lifestyle, Future Retail, and Future Supply Chain Solutions, with itself.
>> Net profit of the company declined 97.93 per cent to Rs 1.88 crore in the quarter ended June 2020 as against Rs 90.70 crore in the year-ago period.
VA Tech Wabag gains on fund raising plan
>> The company's board is scheduled to meet on August 25 to consider and approve raising of funds by way of issue of Equity Shares, on a Preferential basis.
GMM Pfaudler surges 7%
>> Process equipment manufacturer GMM Pfaudler on Thursday said it has acquired a 54 per cent stake in its parent firm Pfaudler Group for a consideration of around USD 27.4 million
SAIL comes out of F&O ban
NSE announces Divi's Labs' inclusion in Nifty50
SBI Life rallies over 3% on Nifty inclusion decision
Realty, IT stocks dominate on NSE
Sensex Heatmap at Open
Opening Bell | All the 50 constituents of Nifty trade in the green
Markets at Pre-open
Markets at Pre-open
Trading strategies for Copper and Lead by Bhavik Patel of Tradebulls Sec
Sell Copper | TGT: 515 | Stop loss: 534
Copper, on daily scale, made ‘harami’ candlestick pattern which is a reversal formation. RSI_14 also is showing negative divergence on daily scale indicating that bullish momentum may be under threat. Prices are far from 20 DMA and historically we have seen mean reversion happening when prices run too far from 20 DMA. So we expect prices to retrace around 515 and that is why we recommend short with stop loss of 534. READ MORE
Top stocks to watch out for today
GMM Pfaudler: Process equipment manufacturer GMM Pfaudler on Thursday said it has acquired a 54 per cent stake in its parent firm Pfaudler Group for a consideration of around USD 27.4 million.
SBI Life, Divi's Lab: SBI Life Insurance and Divi's Laboratories will enter benchmark index Nifty 50 from September 25, NSE Indices, a subsidiary of the National Stock Exchange, said on Thursday. Bharti Infratel and Zee Entertainment Enterprises will be dropped from the Nifty 50, NSE Indices said in a statement.
VA Tech Vabag: The company's board is scheduled to meet on August 25 to consider and approve raising of funds by way of issue of Equity Shares, on a Preferential basis. READ MORE
The counter had earlier provided breakout from a saucer pattern on the daily chart and witnessed some throwback from higher levels. Now it has retested its breakout levels and again started rising. The overall setup signals that the positive momentum is likely to continue towards 690 levels. The RSI has also reversed from the oversold territory on the daily chart which hints at a further positive momentum in the counter. READ MORE
Here's a Bull Spread strategy for Havells India by HDFC Securities
Long build up is seen in the Havells Futures’ where we have seen 4%(Prov) rise in the Open Interest with Price moving up by 1.5%
Stock price has broken out on the daily chart where it closed at nearly six month high with higher volumes READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
Oil climbs for third straight week
>> Oil prices rose in early trade on Friday, on track for a third straight week of gains, buoyed by major oil producers’ efforts to hold back output amid concerns about the economic recovery from the coronavirus pandemic.
>> US West Texas Intermediate (WTI) crude futures inched up 8 cents, or 0.2%, to $42.90, on course for a 2% rise for the week.
>> Brent crude futures rose 16 cents, or 0.4%, to $44.07, heading for a weekly rise around 0.5%.
SGX Nifty update
>> At 8:19 am, the index was at 11,384.20 level, up90.70 points or0.80 per cent
Nasdaq closes at all-time high as strong tech sector offsets jobless data
Asian stocks set to rise after Wall Street tech-driven rally