MARKET WRAP: Sensex gains 230 pts, ends above 39K level; auto stocks rally

Topics Moodys | ICRA | Indraprastha Gas

Stock brokers react to the movement share prices on BSE Sensex in Mumbai. Photo: Kamlesh Pednekar
Extending their gaining streak into the fourth session in a row, the domestic equity market settled with over 0.5 per cent gains on Wednesday.  

The S&P BSE Sensex reclaimed the crucial 39,000 level to settle at 39,074, up 230 points or 0.59 per cent.

IndusInd Bank (up 6 per cent) ended as the top gainer on the index, followed by Reliance Industries (up over 2.6 per cent) and Axis Bank (up over 2.5 per cent).

NSE's Nifty ended at 11,550, up 77 points, or 0.67 per cent.  

Among sectoral indices on the NSE, barring Nifty FMCG, and Nifty Pharma, all the other indices ended in the green. Nifty Auto advanced nearly 1.5 per cent to 8,100.50 levels. 

In the broader market, the S&P BSE MidCap index gained 0.38 per cent while the S&P BSE SmallCap index rose 0.69 per cent. 

Buzzing stocks

Shares of automobile companies were in focus after Finance Minister Nirmala Sitharaman said the Goods and Services Tax (GST) Council would look into the auto industry’s demand for lowering the tax rate on two-wheelers, which are now taxed at the highest slab rate of 28 per cent. READ MORE

Shares of drug firm FDC Ltd rose as much as 6.12 per cent to Rs 336.95 on the BSE after the company launched two variants of the Covid-19 drug Favipiravir under the brand names PiFLU and Favenza. The stock settled at Rs 327.40, up over 3 per cent. READ MORE

Shares of Indiabulls Housing Finance surged 8 per cent in the intra-day trade on the BSE on the back of heavy volume. The stock eventually settled at Rs 218, up around 5.5 per cent. READ MORE 

Global markets

European stocks inched higher on Wednesday as hopes of additional stimulus for Germany and France outweighed worries about rising cases of Covid-19 across the continent.

In China, shares closed lower, hurt by weakness in tech-heavy startup board ChiNext, after investors booked profits after two consecutive sessions of sharp gains. The blue-chip CSI300 index ended down 1.2 per cent at 4,706.13 and the Shanghai Composite index shed 1.3 per cent to close at 3,329.74.

In commodities, oil rose towards $46 a barrel, near the highest since March, lifted by US producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in US crude inventories.

(With inputs from Reuters)

LIVE UPDATES

MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

"Indian benchmark indices picked up positivity towards the latter half of the trading day, after trading flat with a slight positive bias, and ended in gains. It was in sync with a positive opening in the European markets which is banking on additional stimulus measures to aid economic recovery. Index heavyweight Reliance contributed more than half of the Nifty gains, while sectorally Auto and the Banking index contributed most. Auto stocks gained on expectations of government measures to help out the ailing sector.  Markets expected to trade uncertain on lack of fresh triggers while stock-specific action will continue."

SECTOR WATCH:: Nifty Auto gains around 1.5%


MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended 230 points or 0.59 per cent higher at 39,074 levels while NSE's Nifty ended at 11,549.60, up 77 points, or 0.67 per cent. 

MARKET CHECK:: Top 5 losers on the BSE at this hour


BROKERAGE VIEW:: ICICI Securities on Gabriel India

Improving demand outlook leads to an upgrade in our estimates for GIL. We now expect sales, PAT to grow at a CAGR of 0.6%, -2.5%, respectively, in FY20-22E. GIL offers a play on the 2-W demand revival post-Covid and possesses strong financials (debt free B/S, healthy cash flow generation, double-digit return ratios). The recent run-up in stock price, however, limits our ability for a rating upgrade. Consequently, we retain our HOLD rating on the stock, valuing it at Rs 125 i.e. 22x FY22E EPS of Rs 5.6.

Recovery from intra-day lows in today's session

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
INDOSTAR CAPITAL 286.20 330.20 324.90 13.52
IIFL FINANCE 78.50 89.85 89.10 13.50
KPIT TECHNOLOGI. 82.05 94.25 92.95 13.28
INDIAMART INTER. 3226.00 3820.00 3640.00 12.83
Click here for the full list

Invest directly only if you can pick stocks with good earnings potential

The mid- and small-cap indices have performed better than the large-cap index in the current rally. While the S&P BSE Sensex is up 26.62 per cent over the past three months, the S&P BSE Midcap index is up 34.61 per cent, and the S&P BSE Smallcap index is up 42.2 per cent over the same period. READ MORE

NEWS ALERT | KNR Constructions wins order worth Rs 1,157 crore from TN govt; stock recovers from day's low


Heatmap: S&P BSE Sensex gainers and losers at this hour


Government debt likely to stand at 80% of GDP by FY30: Motilal Oswal

The government's debt rose to 75 per cent of GDP in FY20 from 70 per cent in FY18 and is likely to reach 91 per cent in FY21, according to estimates from the EcoScope report of Motilal Oswal Financial Services. It will stay at more than 90 per cent up to FY23 before moderating slowly to 80 per cent by FY30. This surge in government debt-to-GDP ratio will restrict its ability to grow its spending significantly and support economic activity in the 2020s decade as it has done in the past few years, said the report released on Wednesday. READ MORE
 

BUZZING STOCK:: Venky's India zooms 13%


NEWS ALERT :: Markets move higher on vaccine hope

Asian Market Wrap :: Motilal Oswal Financial Services

Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ADANI GAS 187.65 196.50 1.41
AFFLE INDIA 2943.35 2943.35 5.00
ALLCARGO LOGIST. 129.75 139.90 -0.80
APL APOLLO TUBES 2467.50 2489.25 0.77
BAJAJ ELECTRICAL 508.45 513.00 6.05
» More on 52 Week High

NEWS ALERT :: Edgefield Securities sells 2.84% stake in JK Tyre via open market on August 25

(As reported by CNBC TV18)

MARKET UPDATE:: Sensex at day's high


Indostar Capital Finance hits 52-week high; stock surges 37% in 7 days

On August 18, the company allotted 2,000, Secured, Redeemable, Non-Convertible, Rated, Listed, Taxable Bonds in the nature of Debentures of Face Value of Rs 10 lakh each, for cash, at par, aggregating to Rs 200 crore to State Bank of India on private placement basis. READ MORE

Rupee Closing

Rupee ends at 74.30 per US dollar vs Tuesday's close of 74.32/$

Phoenix Mills: Resumption uncertainty to keep stock under pressure

The Phoenix Mills stock was down about 11 per cent on Tuesday after the company's promoters sold a partial stake (7.3 per cent). Promoter holding in the company at the end of June quarter stood at just over 59 per cent.
 
The block deal comes close on the heels of a qualified institutional placement (QIP) last week which helped raise Rs 1,089 crore at Rs 605 per share. READ MORE

MARKET CHECK:: Top 5 gainers on the BSE at this hour


BROKERAGE VIEW:: LKP Securities on The Federal Bank

Despite substantial improvement in all major operating matrix, profitability may remain under pressure in FY21 led by the higher provision for LuM. We have incorporated higher provision requirement along with steady growth in balance sheet and thus expect it to deliver RoA/ RoE of ~1%/~13% by FY22E. In our view, maximum negatives are in the price and thus we recommend BUY with a TP of Rs 71 (based on 0.8x FY22E Adj. BVPS); a potential upside of 27%.

European indices trade mixed


GMM Pfaudler, Laurus Labs, Birlasoft: 13 BSE500 stocks that doubled in 2020

At a time when the return in the frontline indices have been nothing to write home about in calendar year 2020, the action has shifted to the mid-and small-cap stocks. While the S&P BSE Sensex has lost nearly 6 per cent YTD till August 25, the S&P BSE Midcap and the S&P BSE Smallcap indices have gained around 1 per cent and 9 per cent, respectively during this period. READ MORE

Should you buy LIC Housing Finance post Q1 nos? Here's what analysts say

Shares of LIC Housing Finance were trading flat with a positive bias in the afternoon deals on the BSE on Wednesday. The stock had settled over 8 per cent higher on Tuesday following its June quarter (Q1FY21) result announcement. For the quarter under review, LIC Housing Finance's profit before tax (PBT) rose 21 per cent to Rs 1,017.67 crore from Rs 840.89 crore in Q1FY20 while the net profit climbed 34 per cent to Rs 817.48 crore against Rs 610.68 crore in the year-ago period. READ MORE

Indiabulls Housing Fin soars 8% on heavy volume; up 10% so far this week

Shares of Indiabulls Housing Finance surged 8 per cent in the intra-day trade, to quote at Rs 223 apiece, on the BSE on Wednesday on the back of heavy volume. At 12:25 pm, the stock was ruling 6.7 per cent higher at Rs 220.3 on the BSE, as against 0.03 per cent dip in the benchmark S&P BSE Sensex. A combined 46.31 million shares had changed hands on the counter on the NSE and BSE till the time of writing of this report. READ MORE

BUZZING STOCK:: IndusInd Bank at day's high


Top gainers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
INDOSTAR CAPITAL 318.00 15.09
DISH TV INDIA 10.93 9.96
TVS SRICHAKRA 1591.80 7.77
PARAG MILK FOODS 119.30 7.67
ASTER DM HEALTH. 150.00 7.60
» More on Top Gainers

Why is illiquid Elcid Investments stock so valuable off-market?

Elcid Investments is a highly illiquid stock with hardly any trades -- the share has changed hands only 31 times since July 2011--on the exchange. The Mumbai-based company is currently trading at Rs 11.03 a share on the BSE, with a market capitalisation of merely Rs 20 lakh. Prima facie, it looks like a dud penny stock, with no investor willing to take a punt on. Are there no buyers for the stock? READ MORE

MARKET UPDATE:: Broader indices continue to outperform benchmarks


NEWS ALERT :: DGTR recommends anti-dumping duty for 5 years on Choline Chloride imports from China, Malaysia, Vietnam

>> Jubilant Life Sciences had approached DGTR on Choline Chloride imports.

(Source: CNBC TV18)

FDC jumps 6% after launching 2 variants of Covid-19 drug Favipiravir

Shares of drug firm FDC Ltd on Wednesday rose as much as 6.12 per cent to Rs 336.95 on the BSE after the company launched two variants of the Covid-19 drug Favipiravir under the brand names PiFLU and Favenza. The Drug Controller General of India (DCGI) had earlier approved the use of Favipiravir, an off-patent, oral antiviral drug that has been shown to quicken clinical recovery in Covid-19 patients with mild to moderate symptoms, FDC said in a statement to the exchanges yesterday. READ MORE

Birla Tyres hits 5% upper circuit as Co to consider fundraising this week

The company's board will meet on August 28 (Friday) to consider capital raising options for an amount aggregating up to Rs 1,100 crore by way of equity or debt instruments, including non-convertible debentures, among others, Birla Tyres said. READ MORE 


Interest Waiver Case | Govt seems to be hiding behind the RBI, observes RBI

>> Next hearing on Sept 1

Interest Waiver Case | Centre has still not filed its response to the issue, says SC

>> Seeks ine week to file reply to plea seeking waiver of interest on interest

>> The Supreme Court observes that this problem arose on account of Govt-announced lockdown, it must clarify its position.

>> Ample powers are available with the Govt under the Disaster Management Act.

>> Stand of RBI so far is aligned with concerns of the the industry

JMC Projects leaps 16% on bagging new order worth Rs 554 crore

Shares of JMC Projects leaped 16.2 per cent to Rs 62.2 apiece on the BSE on Wednesday after the company bagged new project orders worth Rs 554 crore. Among these, project worth Rs 315 crore was a 'Building Project' in South India, while Rs 239 crore worth project was a 'Factory Project' in Maharashtra. READ MORE

Interest Waiver Case | Centre must clarify its position under the Disaster Management Act, says SC

>> Says, Centre should not think about only business, should also think about plight of people

BUZZING STOCK:: Zee Entertainment up 5%


5Paisa, Dolat Investments, Emkay Global: Time to look at brokerage stocks?

ICICI Securities Limited (ISEC): The counter has seen a surge in volume in the last two sessions. This indicates a buying interest of market participants as price is moving to the higher levels. The Moving Average Convergence Divergence (MACD) has crossed the zero line with price crossing resistance of Rs 505 levels. The subsequent resistance is at Rs 519, where the counter is expected to rally in the coming sessions as per the daily chart. The support stays at Rs 483 levels. READ MORE 


Auto stocks rally as GST Council set to mull tax cut on two-wheelers

Shares of automobile companies were in focus at the bourses on Wednesday after Finance Minister Nirmala Sitharaman said the Goods and Services Tax (GST) Council would look into the auto industry’s demand for lowering the tax rate on two-wheelers, which are now taxed at the highest slab rate of 28 per cent. At 10:10 AM, the Nifty Auto index, the top sectoral gainer, was trading 1.44 per cent higher as compared to a flat Nifty50 index. READ MORE

Can Fin Homes zooms 9% on healthy June quarter result, dividend bounty

Can Fin Homes shares zoomed up to 8.6 per cent to Rs 419.5 on the BSE on Wednesday after the housing finance company posted decent June quarter results on Tuesday, post market hours. The company also recommended dividend of Rs 2 per share. At 10:09 am, the stock was trading at Rs 402.6 per share, up 4.3 per cent, on the BSE, as against 0.09 per cent decline in the S&P BSE Sensex. READ MORE

Bharti Airtel declines 2%


VA Tech Wabag to raise Rs 120 crore; stock declines over 7.5%

Shares of Va Tech Wabag slipped as much as 7.56 per cent to Rs 210.10 apiece on the BSE on Wednesday, a day after the company said its board has approved the issuance of up to 75,00,000 equity shares on a preferential basis, at a price of Rs 160 per share aggregating Rs 120 crore. The proposed investors include marquee names and high net worth individuals (HNIs) such as Rekha Rakesh Jhunjhnwala, Basera Home Finance Private Limited, and Sushma Anand Jain Anand Jaikumar Jain (joint holding). READ MORE

Rupee opening

Rupee opens flat at 74.31/$ vs Tuesday's close of 74.32 against the US dollar

MARKET UPDATE:: Sensex slips into the red


Goldman Sachs upgrades SBI to 'Buy', ups target price by 54%; here's why

"We raise our 12-month target price on the back of increase in medium term adjusted-ROEs (leverage X return on risk weighted assets) by 250 bps to 11.2 per cent; lower cost of equity, by 50 bps on lower risk-free rate; change in FY21 BVPS (c.+20%) as we no longer adjust the capital infusion into YES Bank from SBI’s net worth; and higher subsidiary valuations as we update valuations for the listed subs of SBI and value SBI Life Insurance based on market cap," the report said. READ MORE

SECTOR WATCH:: Auto stocks in focus


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VA TECH WABAG 217.00 -4.53
VODAFONE IDEA 8.97 -0.55
CEAT 900.00 1.91
TATA MOTORS 130.15 2.44
GMR INFRA. 25.70 3.21
» More on Most Active Volume

SBI trades flat

>> Moody’s has downgraded State Bank of India’s (SBI’s) baseline credit assessment (BCA) from “ba1” to “ba2” as the economic shock from the Covid-19 pandemic may aggravate the weakening borrowers’ credit profiles.

Birla Tyres hits 5% upper circuit

>> The company's board will meet on August 28 (Friday) to consider capital raising options for an amount aggregating up to Rs 1,100 crore 

VA Tech Wabag slips around 5.5%

>> The company on Tuesday announced a preferential issue of equity shares aggregating to Rs 120 crore to marquee investors and high net worth individuals such as Rekha Rakesh Jhunjhnwala and others. Basera Home Finance would also be participating.

TVS Motor Co gains nearly 6%


Hero MotoCorp up over 3.6%

>> Finance Minister Nirmala Sitharaman Tuesday said the GST Council would look into the auto industry’s demand for lowering the tax rate on two-wheelers, which are now taxed at the highest slab rate of 28 per cent.

SECTOR WATCH:: Nifty Auto gains 1.5%


FIRST TRADE:: Gainers and losers on the S&P BSE Sensex


OPENING BELL

At 09:17 AM, the S&P BSE Sensex was trading 47 points, or 0.12 per cent higher at  38,890.42 levels while the NSE's Nifty was trading at 11,496, up 23 points, or 0.2 per cent.

Markets at pre-open


MARKET AT PRE-OPEN


India to post strong GDP growth pick up in second half of 2020: Moody's

Moody's Investors Service on Tuesday said India, China and Indonesia will be the only G-20 emerging economies to post a strong enough pick up of real GDP in the second half of 2020, and retained its projection of 3.1 per cent growth contraction for India in 2020. "The economic outlook of emerging market countries is more challenging than in advanced economies. In our baseline projections, China, India and Indonesia will be the only G-20 emerging economies to post a strong enough pick up of real GDP in the second half of 2020 and full-year 2021 to end next year above pre-coronavirus levels," Moody's said in the August update of Global Macro Outlook 2020-21. READ MORE

Covid-19 impact: Moody's lowers SBI's baseline credit assessment to 'ba2'

Rating agency Moody’s has downgraded State Bank of India’s (SBI’s) baseline credit assessment (BCA) from “ba1” to “ba2” as economic shock from the Covid-19 pandemic may aggravate the weakening borrowers’ credit profiles. It would hurt asset quality of India banks. The agency affirmed SBI’s Baa3 deposit ratings. The downgrading reflects that bank’s asset quality and profitability will deteriorate. The resultant weakening in internal capital generation will reverse improvements in its financial metrics achieved over the past two years. READ MORE

Top stocks to watch out for today

SBI: Rating agency Moody’s has downgraded State Bank of India’s (SBI’s) baseline credit assessment (BCA) from “ba1” to “ba2” as the economic shock from the Covid-19 pandemic may aggravate the weakening borrowers’ credit profiles. It would hurt asset quality of India banks. The agency affirmed SBI’s Baa3 deposit ratings.
 
TCS: S&P Global Ratings on Tuesday said Tata Consultancy Services (TCS) is likely to face slower growth in revenue and profitability over the next 12-18 months, given subdued global information technology (IT) spending.
 
Financial stocks may remain volatile as the Supreme Court is expected to hear the interest waiver case later today. READ MORE 


Charts indicate continuation of up-trend in Nifty: HDFC Securities

Hold Nifty longs with 11,290 Stop-loss
 
Nifty, on Tuesday, closed at the highest point of the rally which started from March 2020. Nifty has broken out from the rising wedge pattern on the daily chart, indicating the continuation of an uptrend. There is an intermediate resistance placed at 11,536 levels, which happens to be the partially-filled gap formed on February, 28, 2020. Above 11,536, Nifty would again find momentum. It would be advisable to hold on to the longs in Nifty with trailing on a stoploss basis. At present stop loss in longs should be at 11,290. READ MORE

Stock picks by Ajit Mishra of Religare Broking

Britannia Industries
 
Recommendation: Buy
 
Target: Rs 4,200
 
Britannia has been among the top-performing FMCG counters for the last several years. After a sharp dip in March 2020, it recovered almost vertically and made a new record high at Rs 4,010 in July 2020. It’s currently hovering in a range while holding firmly above the support zone of short term moving average (20 EMA) around its record high.  READ MORE

Bulk deals on BSE as on Tuesday

Bulk deals on NSE as on Tuesday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Brent rises on US output cuts ahead of biggest storm threat in 15 years

>> The price of Brent crude oil edged higher on Wednesday, lifted by US producers shutting most of their offshore output in the Gulf of Mexico ahead of Hurricane Laura and optimism over China-U.S. trade talks.
 
>> But gains were capped amid renewed concern over the coronavirus pandemic, which has squeezed fuel demand, after reports from Europe and Asia of patients being re-infected with Covid-19, raising concerns about future immunity.
 
>> Brent crude oil futures added 8 cents, or 0.2%, to $45.94 a barrel, while US West Texas Intermediate crude was down 2 cents, or 0.1%, at $43.33 a barrel. Both benchmarks settled at a five-month high on Tuesday.

(Source: Reuters)

SGX Nifty update

>> At 8:22 am, the index was at 11,497 level, up 17 points

S&P 500, Nasdaq close at record highs on trade, vaccine developments

Source: Reuters


Asian stocks set for cautious gains

Source: Reuters


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