MARKET WRAP: Fiscal stimulus, US-China trade talk hopes lift Sensex 793 pts

Markets staged impressive gains on Monday lifted by banking, NBFCs, and realty stocks. Fiscal stimulus announced by the government on Friday, August 23, lifted sentiment at D-Street where investors rejoiced rollback of super-rich tax on FPIs, upfront capitalisation of public sector banks, and deferment of hiked registration fees for automobiles. That apart, the sentiment was also aided by a possible resumption in trade talks between the United States and China. 

 
The benchmark S&P BSE Sensex vaulted 843 points in the intra-day trade before settling at 37,494 level, up 793 points or 2.16 per cent. HDFC twins, ICICI Bank, ITC, and Larsen and Toubro were the top contributors towards the gains.

HDFC, YES Bank, Bajaj Finance, and ICICI Bank were the top gainers at the 30-share index, while Vedanta, Sun Pharma, and Hero Moto Corp dipped the most. Meanwhile, the broader Nifty50 jumped 241 points in the intra-day deals to close above the psychological mark of 11,000 after three trading sessions. The 50-share index ended at 11,058 level, up 229 points or 2.11 per cent. 

While early morning gains were sold-into after weak global cues due to trade war concerns caught up with the investors, indices rallied again after US President Donald Trump said China wanted to resume trade talks. 

The news helped to trim losses at the Nifty metal index, which closed at 2,255 level, down 0.97 per cent. All other sectoral indices ended in the green. Nifty Financial Services index settled 4 per cent higher, followed by Nifty Realty index (up 3.74 per cent), Nifty Bank index (up 3.68 per cent), and Nifty private bank index (up 3.65 per cent). 

In the broader market, S&P BSE mid-cap index settled 207 points, or 1.5 per cent, higher at 13,409 level. Similarly, S&P BSE small-cap index, too, closed at 12,387 level, up 201 points or 1.68 per cent.


3:40 PM IST

3:39 PM IST

3:38 PM IST The S&P BSE Sensex zoomed 793 points or 2.16 per cent to settle at 37,494 while NSE's Nifty50 index gained 229 points or 2.11 per cent to end at 11,058. 

3:18 PM IST -- Govt mulling various options to operationalise surcharge rollback -- Govt mulling moving an amendment in the upcoming Winter session -- Govt mulling FPI surcharge rollback via Ordinance

3:11 PM IST

2:53 PM IST Source: Bloomberg

2:50 PM IST

2:47 PM IST UBS Global Wealth Management, which oversees more than $2.48 trillion in invested assets, has gone underweight on equities for the first time since the Eurozone crisis. The Swiss asset manager cut its stock positioning relative to high-grade bonds to reduce its exposure to trade wars and political uncertainty, Global Chief Investment Officer Mark Haefele wrote in a note to investors. READ MORE

2:39 PM IST Shares of Adani Ports and Special Economic Zone (APSEZ) climbed 6 per cent to Rs 371 in intra-day trade on the BSE on Monday after the company announced that the proposed share buyback offer will open on September 6, 2019, and close on September 20. In June, APSEZ had announced its plan to buy back up to 39.2 million equity shares, representing 1.89 per cent stake, at Rs 500 per share, each payable in cash for an amount aggregating up to Rs 1,960 crore on a proportionate basis, through the tender offer route. READ MORE

2:34 PM IST Demand for steel in India could grow at the slowest pace in three years as an economic slowdown in the global industry’s bright spot deepens. Steel consumption in India is likely to increase by less than 6 per cent this fiscal year, according to ICRA Ltd., the local arm of Moody’s Investors Service. That would make it the slowest pace since a 3.1 per cent increase in the year ended March 2017. READ MORE

2:32 PM IST

LIVE UPDATES

Sectoral gainers and losers on the NSE


Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex zoomed 793 points or 2.16 per cent to settle at 37,494 while NSE's Nifty50 index gained 229 points or 2.11 per cent to end at 11,058. 

NEWS ALERT | Govt mulling moving a cabinet note to pass FPI surcharge rollback: sources to CNBC TV18

-- Govt mulling various options to operationalise surcharge rollback

-- Govt mulling moving an amendment in the upcoming Winter session

-- Govt mulling FPI surcharge rollback via Ordinance

Buzzing | Hatsun Agro Products sheds 15%


Dow Futures up 200 pts

Source: Bloomberg

Market check | Profit-booking at higher levels drag indices lower


World's largest wealth manager turns bearish on stocks as trade war deepens

UBS Global Wealth Management, which oversees more than $2.48 trillion in invested assets, has gone underweight on equities for the first time since the Eurozone crisis. The Swiss asset manager cut its stock positioning relative to high-grade bonds to reduce its exposure to trade wars and political uncertainty, Global Chief Investment Officer Mark Haefele wrote in a note to investors. READ MORE

Adani Ports surges 6% on announcement of buyback schedule

Shares of Adani Ports and Special Economic Zone (APSEZ) climbed 6 per cent to Rs 371 in intra-day trade on the BSE on Monday after the company announced that the proposed share buyback offer will open on September 6, 2019, and close on September 20. In June, APSEZ had announced its plan to buy back up to 39.2 million equity shares, representing 1.89 per cent stake, at Rs 500 per share, each payable in cash for an amount aggregating up to Rs 1,960 crore on a proportionate basis, through the tender offer route. READ MORE

Economic slowdown: Steel consumption set for slowest growth in three years

Demand for steel in India could grow at the slowest pace in three years as an economic slowdown in the global industry’s bright spot deepens. Steel consumption in India is likely to increase by less than 6 per cent this fiscal year, according to ICRA Ltd., the local arm of Moody’s Investors Service. That would make it the slowest pace since a 3.1 per cent increase in the year ended March 2017. READ MORE



Jtekt India hits 20% upper circuit


Oil in longest losing run in five weeks as US-China trade war deepens

Oil fell for a fourth day, set for the longest run of declines in more than five weeks, after the latest escalation in the trade war blindsided investors and worsened an already-shaky global demand outlook. Futures in New York dropped as much as 2.2 per cent after closing down 2.1 per cent on Friday as Beijing said it would impose retaliatory tariffs on another $75 billion of US goods, including oil for the first time. READ MORE

Market check


Market check | Sensex rallies over 800 pts


MARKET ALERT | HDFC twin accounts nearly half of the Sensex 746 points rally

-- HDFC is up 4.6% while HDFC Bank has added 4%


Ashok Leyland adds over 5%


NEWS ALERT | Cement prices set to rebound in parts of South India post recent sharp correction: sources to CNBC TV18

-- Prices set to increase by Rs 50-60/bag in Andhra Pradesh & Telangana

Cements stocks gain

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
INDIA CEMENTS 71.50 0.75 1.06 349038
AMBUJA CEM. 199.85 2.50 1.27 106987
ACC 1480.60 11.65 0.79 32678
ULTRATECH CEM. 3970.90 109.85 2.85 19496
HEIDELBERG CEM. 187.40 1.05 0.56 16346
» More

Market check


Market check


BUZZING STOCK:: Capacite Infra zooms over 9%


NEWS ALERT | DHFL appoints KK Mankeshwar & Co as statutory auditors w.e.f today: BSE filing


Pick of the week :: HDFC Securities

HCL Tech: BUY

CMP: Rs 1,087

Recommended action: Buy at CMP and add on dips to Rs 1,023- Rs1,035 band

Target: Rs 1,162 – 1,205

Stop loss: Rs 999

Investment rationale:
 
-- Healthy order pipeline
 
-- Focused on fast growing and high margin verticals
 
-- Margins expected to ramp up in near to medium term due to lapsing of one-off expense and consolidation of IBM business
 
-- Positioning across the verticals, resulting in growth and better margins
 
-- Fastest growing among large IT companies with better industry productivity.

NEWS ALERT | 1 of 2 blast furnaces at Kharagpur to be closed for maintenance for 3 days: Tata Metaliks


Market check


Market check


ICICI Securities on auto sector

In terms of segments that will benefit from current measures, it will benefit the CV, PV, 3-W, 2-W in order of preference. We abstain from changing our volume estimates for full year FY20E. However, we upgrade our P/E multiples in tandem with long period averages valuation multiples. Given that the major auto OEMs are now trading near or above their long period average P/E multiples, we are still not positive on this space and not recommending any fresh buys. We further downgrade Maruti to SELL with an unchanged target price of Rs 5,000. We maintain our REDUCE rating on Bajaj Auto. However, we continue to have a HOLD recommendation on Hero MotoCorp, Eicher Motors, Ashok Leyland, M&M and Tata Motors.
 

NEWS ALERT | No irregularities found during the search operation by I-T Authorities: Capacit'e Infra

-- There have been no claims made against the co nor have there been any disclosures.

-- Proceedings have no impact on financial & operational performance of the company
(via BSE filing)

Markets may see selling pressure; Sensex faces resistance at 37,000 mark

S&P BSE SENSEX: The daily chart reveals 37,500 to be the breakout level for the index, one that can change the negative sentiment and revive the upside rally. The index ws unable to sustain above the 37,000 mark, going ahead, 37,000 – 37,500 levels will act as a resistance range. A bigger upside rally is expected only if it has added volumes and the index is able to hold above the resistance zone. The candlestick pattern on Friday showed a bullish reversal. That said, this reversal needs to have one more positive close. If that happens, then only we can see a positive sentiment prevailing for the current week, which also has F&O expiry on Thursday READ MORE

NBCC to get Rs 7 cr to finish 2 Amrapali projects; ED gets audit report: SC

The Supreme Court on Monday directed that a forensic audit report be given to the Enforcement Directorate, Delhi Police and the Institute of Chartered Accountants in India (ICAI) for taking appropriate action against Amrapali directors and auditors for siphoning off over Rs 3,000 crore of home buyers' money.
 
A bench of justices Arun Mishra and U U Lalit also directed the apex court registry to disburse Rs 7.16 crore deposited by the Amrapali group to the National Buildings Construction Corporation (NBCC) for completion of stalled projects of the group. READ MORE

Market check


China says wants 'calm' resolution to U.S. trade war: Reuters

China is willing to resolve its trade dispute with the United States through “calm” negotiations and resolutely opposes the escalation of the conflict, Vice Premier Liu He, who has been leading the talks with Washington, said on Monday.

The increasingly bitter trade war between the world’s two largest economies sharply escalated on Friday, with both sides levelling more tariffs on each other’s exports. U.S. President Donald Trump announced an additional duty on some $550 billion of targeted Chinese goods on Friday, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods.

Eicher Motors hits 44 month-low on growth concerns, slips 13% in two weeks

Shares of Eicher Motors, the manufacturer of the iconic Royal Enfield brand of motorcycles, on Monday hit a 44 month-low of Rs 15,197, down 1 per cent in the intra-day trade on the BSE, on concerns of weak demand outlook.
 
The stock was trading at its lowest level since January 19, 2016. In two weeks, it has underperformed the market by falling 13 per cent, as compared to a two per cent decline in the benchmark S&P BSE Sensex and S&P BSE Auto index. READ MORE

NEWS ALERT | FM undertaking review meeting with senior govt officers on GST network issues: CNBC TV18

-- Meeting underway to discuss network issues, fast-tracking refunds

Market check | Sensex soaring high


NEWS ALERT | Dilip Buildcon to divest part/entire equity stake in 5 BOT projects: BSE filing

-- BOT is build operate transfer


NEWS ALERT | ED examining 'colourable’ transactions of Jet Airways: sources to CNBC TV18

-- Colorable transactions done under the guise of selling & distribution expense

-- 19 privately held properties being investigated

-- Commission, other fictitious expenses booked at high price

-- Jet Air allegedly made lease deals with "ghost" offshore companies

-- ED searched Hasmukh Gardi, investor in Tailwind Corp

Alert: ED raided Naresh Goyal & cos related to him on Aug 23 had raided 

         Hasmukh Gardi's name appeared i Panama Papers for holding Fraudulent companies

Market check


Nifty Fin Service index is trading 2% higher


Sensex up over 300 pts


NEWS ALERT| SC asks Noida, Greater Noida Authority to act on Amrapali's auditors' report: ET Now

-- SC directs release of Rs 7.12 cr to NBCC

-- Adjourns hearing to Sep 11
 

NEWS ALERT | NCLT approves merger of PVR & SPI Cinemas: CNBC TV18


Gold at over 6-year peak as trade war escalation sparks rush to safe-haven

Gold prices scaled a fresh six-year high on Monday, as the latest tit-for-tat tariffs by the United States and China in their year-long trade war battered global equities and boosted demand for safe-have assets. Spot gold jumped 0.9 per cent to $1,539.70 per ounce as of 0414 GMT, having earlier touched $1,554.56 an ounce, its highest since April 2013. READ MORE

Market check


Market check


NEWS ALERT | Bank recap to help calibrate PSBs' balance sheets: Moody's

-- India's bank recap will help banks grow loans by 13-15% this FY


Views on Gold by Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

"The US-China trade war with new tariff announcement has pushed gold and silver prices to a new six-year high as investors rushed for safe-have assets. Depreciating Indian rupee also helped the rise in prices. We expect the current trend to continue for gold and silver. On the MCX, the gold is likely to move towards 39,900 to 40,000 levels. Saying that 38,800 and 39,000 act as a strong crucial support levels for gold on the downside. Similarly, we expect positive trend to continue for silver with prices expected to move higher towards 48,000 levels in coming days with 45,900 and 46,200 as support levels on downside."

NEWS ALERT | CG Power Board likely to meet soon to address investors, lenders demand: sources to CNBC TV18

-- Co needs Rs 500 cr working capital

-- Co to sell non-core assets to raise cash

-- Ouster of Gautam Thapar, revivial of Co keep demands of investors

-- Co to evaluate loss-making overseas assets

Delta Corp surges 9%


NEWS ALERT | OMCs are independently talking to Air India on ATF supply: Dharmendra Pradhan, Minister of Petroleum & Natural Gas

Alert: ATF is Aviation Turbine Fuel 

         OMCs is Oil Marketing Cos

         OMCs has stopped supply of fuel to Air India due to non-payment of dues


Rupee Check | Re at 72.17/$; declines by 51 paise to hit new 2019 low

Indiabulls Real zooms over 9%


NEWS ALERT | An explosion occurred at co's unit II, Saidpura, Punjab on August 24: Nectar Lifesciences

-- 16 people were reported to be injured out of which 7 are discharged

(Via BSE filing)


Nifty Metal index hits over 3-year low as US-China trade war escalates

Shares of metal companies were under pressure on Monday with Nifty Metal index hitting an over 3-year low in the intra-day trade amid US-China trade war concerns. At 10:07 am, the Nifty Metal index, the biggest loser among sectoral indices, was down 4 per cent at 2,185 level, as compared to a 0.53 per cent decline in the benchmark Nifty50 index. The index hit an intra-day low of 2,180, its lowest level since June 29, 2016 on the National Stock Exchange (NSE). READ MORE

NEWS ALERT | South American conglomerate submitted EoI for Jet Airways: sources to CNBC TV18

-- 3 bidders submitted EoIs before Aug 10; one after Aug 10

NEWS ALERT | US FDA issues 1 observation for Unichem Lab's Ghaziabad Unit: BSE Filing


Market check


Rupee check

Source: Bloomberg


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
YES BANK 58.30 -0.95 -1.60 7369787
VODAFONE IDEA 5.57 -0.17 -2.96 5450609
ASHOK LEYLAND 60.95 0.70 1.16 2454426
REL. COMM. 0.98 0.00 0.00 2120933
BHARTI INFRA. 244.25 -2.80 -1.13 2061374
» More on Most Active Volume

India Vix up 6%


HDFC climbs 2%, top gainer in S&P BSE Sensex now


NEWS ALERT | CBIC compulsorily retires 22 officers on corruption & other charges: CNBC TV18

-- Officers of the rank of Superintendent/AO retired

Alert: CBIC is Central Board Of Indirect Taxes & Customs

         27 IRS Officers including 12 from CBDT were compulsorily retired in June


Market check


Nomura to CNBC TV18 on Indian market

-- Indian market's outlook looks brighter than competing economies

-- Positive on banks, insurance, and select infra companies

-- Rising global trade tensions could aid domestic-demand-driven countries like India

Four reasons why Sitharaman's stimulus measures are short on vision

India is belatedly acknowledging that something’s gone wrong with what was once billed as the world’s fastest-growing economy. That’s the good news. The bad news is that New Delhi still doesn’t have a cohesive strategy to reverse the slowdown. Finance Minister Nirmala Sitharaman did offer a stimulus package on Friday. The highlight was the rollback of a tax surcharge on overseas investors that she herself had imposed in July’s budget. It’s a welcome concession, though there’s no logic in giving global banks a break on derivatives they trade in India while denying the same tax benefit to local hedge funds. READ MORE
Nirmala Sitharaman | Photo: @ANI

New announcement will improve the demand sentiment: Eicher Motors to CNBC TV-18

  • Rural demand should be supported by normal monsoon;
  • Increased govt spending on infra would boost demand
 

Motherson Sumi slips in trade


Market check


Market slips into the red


JSW Steel dips over 4%


Momentum picks by ICICI Securities

 

Indian Overseas Bank rises 7%


Procter & Gamble Hygiene slips over 4%


Market check


Market check


Vedanta slides 5%


Public sector banks gain on Rs 70,000-crore capital boost from govt

Shares of public sector banks (PSU) rallied by up to 11 per cent on the National Stock Exchange (NSE) in Monday's early morning trade after the government announced that it will infuse Rs 70,000 crore upfront into state-owned banks. State Bank of India (SBI), Bank of Baroda, Punjab National Bank, Bank of India, Oriental Bank of Commerce, Central Bank of India, Allahabad Bank, Syndicate Bank, Union Bank of India, and Canara Bank were all up 5 per cent to 12 per cent on the NSE in intra-day trade. READ MORE

Sunteck Realty dips 2.3%


Nifty Auto slips in the red


IndusInd Bank hits 52-week low in an otherwise strong market


NEWS ALERT | Market is at record oversold level: Atul Suri to CNBC TV18

-- Quality stocks will matter in this environment

-- Doubt that short-covering rallies will reverse the market course

Zee Media adds 3%


M&M gains in trade


Jet Airways dips 5%


NEWS ALERT | L&T Power bags order in the range of Rs 1,000-2,500 cr from NTPC in Madhya Pradesh


Nifty metal index dips nearly 3% on US-China trade concerns


Weak global cues denting Indian indices


PSU bank stocks rally on Rs 70,000-cr capital infusion into PSBs


Market check


Market check | Profit-booking at higher levels drag markets lower


Infosys trades lower


Tata Steel slips on weak global cues


Central Bank of India soars over 8%


Broader Market Check | Mid, small-caps outperform benchmarks


Rupee tumbles 40 paise to 72.06 against US dollar in early trade

The rupee on Monday slipped to 72.06 in the opening deals on Monday amid weak global cues. The domestic unit on Friday ended at 71.66, up 15 paise on hopes that the government will roll back the FPI surcharge and unveil measures to boost growth. It had breached the 72-mark for the first time in 2019 during the intra-day trade on Friday.
 
The Indian currency has witnessed heavy selling in the recent past, and has been depreciating against the dollar for the last seven consecutive weeks. There could be a pullback in the rupee as it looks extremely oversold in the short term, said VK Sharma, Head PCG & Capital Markets Strategy, HDFC Securities. READ MORE

DHFL gains 4.5%


Indian Oil Corp trades lower


Lupin trades marginally higher


SBI gains 4%


Tata Motors gains during morning deals


IndiGo rises over 1%


CG Power slips 1%


Bajaj Finance gains 3%


YES Bank gains 4%


Sectoral trends at NSE during Opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Market at Open


Market at Open


Rupee Check | Re weakens during morning deals


Top gainers and losers on S&P BSE Sensex during Pre-open


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens lower at 71.98/$ vs Friday's close of 71.66 against the US dollar

FM's fiscal stimulus can boost consumption ahead of festive season

The sustained post-Budget selling by Foreign Portfolio Investors (FPI), coupled with bad news on the consumption front has led to the finance minister announcing a combination of roll-backs of Budget provisions and new sops to try and reverse sentiment and encourage consumption.
 
The provision for higher tax surcharge on super-rich individuals and trusts is being removed. This should help reverse some of the pessimism as it affected many FIIs. In addition, the government has announced a few measures to try and encourage loan disbursal from banks and NBFCs, including HFCs, while trying to ensure lower cost of capital for borrowers. READ MORE

Commercial vehicle makers to gain the most from FM Sitharaman's measures

The slew of measures for the auto sector announced by Finance Minister Nirmala Sitharaman on Friday is expected to benefit the medium and heavy commercial vehicle (M&HCV) segment the most. The segment is the worst affected by the slowdown due to falling freight rates, which hit a three-year low, credit squeeze, higher costs and relaxation of axle load norms READ MORE

Despite surcharge rollback, near-term flows may remain muted: Chhaochharia

Being one of the early commentators to flag economic slowdown and caution investors on corporate earnings, Gautam Chhaochharia, head of India research, UBS Securities, in an interview with Hamsini Karthik says the markets remain in an expensive zone despite the recent correction. Edited excerpts: 1.
 
Will the roll back of FPI surcharge be viewed as a major positive by these investors? Do you expect this to reverse sentiments?  READ MORE
Gautam Chhaochharia, Head of India Research, UBS Securities

Market players see short-term bounce after FM Sitharaman's measures

The measures announced by Finance Minister Nirmala Sitharaman on Friday and the promise of more will be a shot in the arm for the bulls, who have been subdued for nearly two months. Experts have given the thumbs up to the government for taking steps to restore confidence among investors and businesses. However, they say more will be needed.
 
While the markets are set for an immediate surge, a prolonged upward climb is ruled out, given the precarious US-China trade situation and economic slowdown, both globally as well as domestically. READ MORE

Stocks to watch: GAIL, Reliance Capital, Jet Airways, Autos, Alkem Labs

Here's a look at the top stocks that may remain in focus today -
 
Reliance Capital: The ciompany on Friday informed that CARE Ratings (CARE) has downgraded the rating to CARE BB and revised rating outlook to Stable from credit watch with negative implications for long-term debt program, market-linked debentures and subordinated debt of the company.
 
GAIL: Supply of Compressed Natural Gas (CNG), domestic Piped Natural Gas (PNG) and CNG-run vehicles were launched in Ranchi on Friday. GAIL (India) is implementing the prestigious Pradhan Mantri Uty‘a Ganga and also the City Gas Distribution (CGD) projects in Ranchi and Jamshedpur. READ MORE

Commodity picks: 26 August 2019

Sugar
 
Sugar is trading at Rs 3,287 per quintal in Kolhapur. Prices may head towards Rs 3,320 per quintal following anticipation of a sugar subsidy announcement and hike in ethanol prices. Disruption in supply and sugarcane losses due to floods in Maharashtra and Karnataka, lower selling quota and steady demand ahead of upcoming festivals will support prices. READ MORE

With no major fiscal support, govt's growth measures seen falling short

Finance Minister Nirmala Sitharaman announced a number of measures on Friday to help re-ignite an economy that’s slowed sharply on the back of weak consumption and a deteriorating global environment. However, she didn’t outline any major fiscal support -- as businesses had been calling for -- focusing instead on steps to spur foreign funds and lending.
 
Economists, finance leaders, industry executives and local media raised questions about the effectiveness of the measures, which included scrapping a tax on foreign funds, allowing concessions on vehicle purchases and hastening infusion of an already announced 700 billion rupees ($9.8 billion) of capital in state-run banks. READ MORE

Govt's reform push: Domestic equities and rupee likely to see a turnaround

Domestic equities and the currency are among the worst-performer in Asia this month. However, the latest measures announced by the government on Friday will help arrest this underperformance and could even see India outperform global markets in the near term. So far this month, the rupee, which briefly breached the 72-mark against the dollar on Friday, is the worst-performing Asian currency. READ MORE

Top stock picks by Angel Broking: Buy TATA Elxsi, Bharat Electronics

Nifty Outlook
 
Some respite on last day to reclaim 10,800
 
Last week, we closed with some hopes of a relief rally and on Monday, the proceedings began on expected lines. But at higher levels, market faced a sturdy wall around 11,150, which resulted into a moderate decline for the next couple of days. However, on Wednesday, things became worse as we witnessed a relentless sell-off and the Nifty slid below the recent swing low of 10,782.60. On Friday, th eindex continued its selling streak and gave a sharp correction to sneak below the 10,650-mark. READ MORE

Nifty outlook and top trading ideas by Prabhudas Lilladher

BUY MAHINDRA & MAHINDRA
 
CMP: Rs 533.25
 
TARGET: Rs 590
 
STOP LOSS: Rs 505
 
The stock has corrected sharply recently from the levels of Rs 675 and has consolidated near Rs 520, taking support at Rs 505 levels, maintaining a good base. Currently, a bullish engulfing candle has signified a positive bias and along with the relative strength index (RSI) indicating a trend reversal has made the stock look attractive and we recommend a buy in this stock for an upside target of Rs 590, keeping a stop loss of Rs 505. READ MORE

Market outlook and top trading ideas by CapitalVia Global Research

Nifty View
 
Markets bounced sharply from lower levels and formed piercing candle on daily charts, hinting towards the reliefs provided by Finance Minister Nirmala Sitharaman by revoking FPI surcharge, capitalization for PSBs and major announcements to boost the economy. The Nifty closed at 10,829.40 on Friday, surging 88 points, and making an intraday low of 10,638.
 
Niftybank was unable to contribute in the rally and closed in the red at 26,958.65, shedding 75.55 points. The Nifty will face resistance at 10,900 levels, and if it breaks this level, we may witness an upside up to 11,050. READ MORE

Bulk deals on BSE as on Friday

INTERVIEW OF THE DAY :: Despite surcharge rollback, near-term flows may remain muted: UBS

Being one of the early commentators to flag economic slowdown and caution investors on corporate earnings, Gautam Chhaochharia, head of India research, UBS Securities, in an interview with Hamsini Karthik says the markets remain in an expensive zone despite the recent correction READ MORE

Head of India Research, UBS, Gautam Chhaochharia

Bulk deals on NSE as on Friday

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


DEVANGSHU DATTA: FM's fiscal stimulus can boost consumption ahead of festive season

The sustained post-Budget selling by Foreign Portfolio Investors (FPI), coupled with bad news on the consumption front has led to the finance minister announcing a combination of roll-backs of Budget provisions and new sops to try and reverse sentiment and encourage consumption.
 
The provision for higher tax surcharge on super-rich individuals and trusts is being removed. This should help reverse some of the pessimism as it affected many FIIs. In addition, the government has announced a few measures to try and encourage loan disbursal from banks and NBFCs, including HFCs, while trying to ensure lower cost of capital for borrowers READ MORE HERE

Rupee Check

Source: Bloomberg


AMBAREESH BALIGA : FM's announcements show govt is now willing to listen and course-correct

My biggest takeaway from Finance Minister Nirmala Sitharaman’s press meet on Friday was that the BJP government was finally prepared to accept the ground reality and willing to take corrective action. More importantly, the entrepreneurs and tax payers are seen as “wealth creators” and not “villains”, trying to game the system. The announcements were, no doubt, a sentiment booster without a strain on the exchequer, which I think is a fine balancing act READ VIEWS HERE

Oil Check

At 8:35 am, Brent Crude Futures were trading at $58.39 per barrel, down 0.7 per cent from its last close.

MARKET COMMENT


SGX Nifty

At 8:30 am, the Singaporean Exchange for Nifty Futres was up 75 points at 10,905 level
 

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


GLOBAL MARKET UPDATE

Asian shares seemed set for a turbulent start on Monday as the latest salvo in the U.S.-China trade war shook confidence in the world economy and sent investors steaming to the safe harbor of sovereign bonds and the Japanese yen.
 
The Chinese yuan was also under pressure in early trade, with the dollar quoted up at 7.1763 and markets braced for more intervention from Beijing to support the currency. Nikkei futures pointed to an opening fall of more than 3%, while E-Mini futures for the S&P 500 were trading down 1.2%.
 
Wall Street nose-dived on Friday when President Donald Trump announced a 5% additional duty on $550 billion in targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. products

COMMENT :: Nomura on financial sector

The government has announced a slew of initiatives to address slowing growth. The measures are a mix of reversing the recent tax changes, front-ending PSU capital infusion and some new measures ranging from auto sector sops to clearing government dues to nudging banks to lower rates.

While these measures should aid in stemming the current slowdown, we believe a lot of the initiatives such as credit enhancement, continued focus on reducing government dues, co-lending between banks and NBFCs will need the right implementation to be successful.

MARKET COMMENT :: Ashishkumar Chauhan, MD & CEO, BSE

Long-term measures will improve ease of doing business and ease of living include giving GST refund in 30 days to MSME and randomized- faceless - e assessments for IT. These are some of the deep reforms which require a lot of thinking as well as preparing and IT prowess. Overall, the take home is that the government is listening, has listened, has identified solutions and have taken some quick and bold wide ranging decisions. 

It should give confidence to every one in business that this government is intent on solving all issues by discussions and taking steps that are necessary.
 

CSR spend and criminal proceeding on that was a surprise to many when it was announced. Taking it back, is a welcome move. It will allow corporations to think and employ their CSR funds in an effective way without the fear.  This step has certainly given a boost to the morale of corporate India

MARKET COMMENT :: Vijay Chandok, MD & CEO, ICICI Securities

We welcome the new announcements made by the finance minister and are confident that the slew of measures revealed by her would act as a major stimulus for the economy and provide an all-round sentiment boost. 
 
These steps are as much on ease of doing business as they are on rationalizing of taxes and injecting liquidity into the system. The measures are expected to aid both - consumption and investments as borrowing cost will come down. 
 
With withdrawal of surcharge on key investor categories like FPIs, inflows into the market is expected to improve. Some key job creating sectors like auto and real estate, who have been under pressure lately, have been given a good boost, which is a welcome step
 

Market Preview :: William O’Neil India

The U.S. indices fell heavily on Friday. This is the fourth consecutive week of decline for both the Nasdaq Composite and S&P 500. During the week, the indices found resistance at their 50-DMA. On the downside, the 200-DMA can act as support in the near-term. Asian market indices also opened in the red, taking cues from the U.S. markets.
 
On Friday, Nifty advanced 0.8% anticipating favorable announcements by the government. During a scheduled meeting, the government did announce some measures to boost the economy. Today’s market action will be in reaction to the slew of measures announced on Friday. FIIs/FPIs activity should be observed closely today, as the enhanced surcharge was revoked.
 
At 8:00 a.m. IST, the SGX Nifty Futures was 0.5% higher at 10,886, compared with its previous close. On Friday, FIIs/FPIs sold stocks worth Rs 1,737 crore while DIIs bought stocks worth Rs 1,548 crore. On a month-to-date basis, FIIs/FPIs sold stocks worth Rs 12,393 crore while domestic investors infused Rs 16,147 crore.
 
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