MARKET WRAP: Sensex gains 264 pts ahead of FM's media briefing, Q1 GDP nos

Topics MARKET WRAP | Markets

Domestic indices remained volatile on Friday, but rallied in the fag-end of the session, ahead of the June quarter GDP numbers, due later in the day. Further, likely announcement by the Finance Ministry on recapitalisation of state-owned banks and their consolidation witnessed increased buying interest at the counters. That apart, hopes of face-to-face trade talks between the United States and China helped ease investors' worries.

The benchmark S&P BSE Sensex settled 264 points, or 0.71 per cent, higher at 37,333 level. HDFC twins, ITC, ICICI Bank, and Hindustan Unilever emerged as the top contributors to the index's gain, which were up in the range of 1-3 per cent. YES Bank, Sun Pharma, IndusInd Bank, and Tata Steel ended the day as top gainers, while Power Grid, ONGC, HCL Tech, and Larsen and Toubro were the top losers.

Meanwhile, the broader Nifty50 ended at 11,023-mark, up 75 points or 0.68 per cent.

On a weely basis, the Sensex gained 1.72 per cent, while the Nifty50 was up 1.79.

Sectorally, all the indices on the NSE ended in the green. Nifty Pharma index ended the day as top gainer, up 2.4 per cent, followed by Nifty Metal index, up 1.8 per cent. 

In the broader market, the S&P BSE MidCap index closed at 13,468 level, up 134 points, or 1.01 per cent. The S&P BSE SmallCap index closed at 12,535 level, up 104 points, or 0.84 per cent. 


Union Finance Minister Nirmala Sitharaman is scheduled to address media later in the day, where she is likely to announce mega plan for merging multiple set of public sector banks (PSB). 

The department of financial services in the finance ministry called a meeting, on Friday, with chief executives of ten public sector banks which are seen as top contenders for merger. The banks invited for consultations on Friday are: Union Bank of India, Canara Bank, Punjab National Bank, United Bank, Oriental Bank of Commerce, United Bank, Allahabad Bank, Corporation Bank, Syndicate Bank and Andhra Bank. READ MORE

Shares of PSBs ended mixed on the National Stock Exchange (NSE). Oriental Bank of Commerce, Central Bank of India, Syndicate Bank and Allahabad Bank gained up to 6 per cent. On the other hand, State Bank of India (SBI), Union Bank of India, Bank of India, Indian Bank and Bank of Baroda were down between 1 and 2 per cent. 


Asian shares jumped to a one-week high on Friday as the United States and China showed a willingness to resolve their trade dispute by returning to the negotiating table, though lingering recession fears tempered some of the enthusiasm.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose to the highest since Aug. 23, but soon pared some of those gains after Chinese and Hong Kong stock markets turned negative. The MSCI index was last up 0.8 per cent.

Japan’s Nikkei jumped 1.2 per cent while South Korea’s KOSPI index gained 1.8 per cent and Australian shares were 0.9 per cent higher.


Sectoral gainers and losers on the NSE

Gainers and losers on the S&P BSE Sensex


The S&P BSE Sensex rallied 264 points or 0.71 per cent to settle at 37,333 while NSE's Nifty50 index ended at 11,023, up 75 points or 0.68 per cent. 

MARKET CHECK | Top stocks that hit new highs

HDFC AMC, Infosys, Bata India, Asian Paints, Berger Paints among BSE500 index stocks that hit record highs in today's session

Market check | Markets rebound in last trading hour

Market check

Page Industries surges over 3%

Stocks that hit 52-week low on S&P BSE Sensex

BANK OF BARODA 90.80 89.10 -1.10 -1.20
CYIENT 417.80 414.00 -12.25 -2.85
GODREJ INDS. 419.00 414.15 -3.85 -0.91
INDIABULLS INTEG 80.30 79.95 -3.45 -4.12
JYOTHY LABS 141.55 138.85 -2.35 -1.63
» More on 52 Week Low

NEWS ALERT | SpiceJet to launch six new international and domestic flights

ICRA slides 5% after it terminates MD and Group CEO Naresh Takkar

Shares of ICRA, the Indian arm of global rating agency Moody's, declined around 5 per cent on the BSE in the intra-day trade on Friday after the company terminated its Managing Director (MD) and Group Chief Executive Officer (CEO) Naresh Takkar’s employment. The rating agency has attributed the unprecedented move to protect interests of the company and its shareholders. READ MORE

Market check

Market check | Markets recover

Market check

NEWS ALERT | GST Council to discuss simplified GST returns in next meeting: BTVi

-- States seek launch of simplified return filing from April 1, 2020

Alert: Next GST Council meeting expected on Sept 20

NEWS ALERT | FM to meet PSU bankers on mergers at 2 PM today: ET Now

How and when to invest in SIP variants when the market is facing turbulence

Indian investors have already adopted the mantra of investing through systematic investment plans (SIPs) in a big way in recent years. The industry has so far garnered 2.78 crore SIP accounts. Fresh collection via the SIP route was Rs 8,324 crore in July 2019. And the total SIP assets under management stood at a healthy Rs 2,81,393 crore. Now, several players are trying to tweak the regular SIP to make it more effective and enhance investors’ returns. READ MORE

NEWS ALERT | Delhi High Court disposes petition filed against PNB Housing: BSE fiing

-- Petition disposed without giving any reliefs asked by the petitioner, Abhijit Mishra

--  The Hon'ble High Court observed that the National Housing Bank being a regulator, shall take care of the execution of its own circulars and any housing finance
institution found in violation shall be dealt with by the regulator in accordance with its rules and regulations, it said in the filing.

PSBs trade lower; Nifty PSU Bank index down 1.7%

SBI slips over 2% after 0.5% equity gets exchanged

SECTOR WATCH | S&P BSE Utilities index drops over 1%

NEWS ALERT | Sebi allows AMCs to join Inter-Creditors Agreement subject to condition: CNBC TV18

Sebi says:

-- Segregation of portfolio pursuant to credit event

-- AMCs must inform rating agencies on intimation of any ICA

-- Signing of ICA must be in the best interest of investors

-- AMCs can exit ICA, if resolution conditions are contrary to Sebi rules

-- Resolution plan must be implemented in 180 days

-- Extension beyond 180 days only if it meets investors' interest

Around 85 securities on NSE hit 52-week low so far in trade

ADHUNIK Adhunik Metaliks Limited 1.05 1.05 29-Aug-2019 1.15 1.10 0.05 4.55
ALOKTEXT Alok Industries Limited 2.55 2.55 29-Aug-2019 2.65 2.60 0.05 1.92
AUTOIND Autoline Industries Limited 32.10 33.10 23-Aug-2019 32.10 33.95 -1.85 -5.45
BANKBARODA Bank of Baroda 89.10 89.65 22-Aug-2019 89.35 91.80 -2.45 -2.67
BKMINDST Bkm Industries Limited 1.30 1.35 29-Aug-2019 1.30 1.35 -0.05 -3.70

(Source: NSE)

Click here for the complete list

NTPC slips 6% after it incorporates subsidiary to take up coal mining

Shares of NTPC (National Thermal Power Corporation) slumped 6 per cent to Rs 116 on the BSE, in the intra-day trade on Friday, after the company announced incorporation of NTPC Mining, a wholly-owned subsidiary to take up coal mining business.  READ MORE

Balrampur Chini, Kothari Sugar: Is it the right time to buy sugar stocks?

The Union Cabinet recently approved a subsidy of Rs 6,268 crore for the export of 6 million tonnes of sugar. The development triggered a rally in select counters with Dharani Sugar and Chemical hitting the upper circuit of 20 per cent on Thursday. The opening hour witnessed selling pressure in most stocks, which closed weak (negative candle on the charts). READ MORE

Public sector banks merger: Modi govt to announce big bang plan soon

The department of financial services in the finance ministry has called a meeting with chief executives of ten public sector banks, which are seen as top contenders for merger, on Friday.
The banks invited for consultations on Friday are: Union Bank of India, Canara Bank, Punjab National Bank, United Bank, Oriental Bank of Commerce, United Bank, Allahabad Bank, Corporation Bank, Syndicate Bank and Andhra Bank. READ MORE

NEWS ALERT | Kalpataru Power bags orders worth Rs 1,263 crore: BSE filing

Contributions to S&P BSE Sensex's fall today

Nifty sectoral indices at this hour

CreditAccess Grameen surges 12% in range-bound market, nears all-time high

CreditAccess Grameen shares surged 12 per cent to Rs 587 in intra-day trade on the BSE on Friday in an otherwise range-bound market on the back of heavy volumes. The non-banking housing finance company's (NBFC's) stock was trading close to its record high level of Rs 591, touched on June 11, 2019 in intra-day trade. The microfinance institution (MFI) made stock market debut on August 2018. READ MORE

Market check

NEWS ALERT | NTPC incorporates arm, NTPC Mining, for taking up coal mining business: BSE filing

Adani Green surges 10% as it inks pact with Essel Infra to buy solar assets

Shares of Adani Green advanced as much as much 10.49 per cent to Rs 47.90 apiece on the BSE in the early morning deals on Friday, a day after the company announced it will acquire Essel Infra's 205 megawatt (Mw) of solar assets for Rs 1,300 crore.
The assets are located in Punjab, Karnataka, and Uttar Pradesh. All these assets have long-term power purchase agreements with various state electricity distribution companies, the company said. READ MORE

YES Bank dips 3% ahead of board meet to consider fund raising

YES Bank shares slipped up to 3 per cent to Rs 55.55 in intra-day trade on the BSE on Friday, ahead of its board meeting scheduled for later in the day. The bank's board is likely to consider raising funds worth $1.2 billion. The private sector lender's stock has slipped 14 per cent in the past three trading days, as compared to a 2 per cent decline in the S&P BSE Sensex in the same period. READ MORE

Market check

Market check

NLC India zooms 4%

NEWS ALERT | There is no investigation by any regulator on Related Party Transactions: IndiGo chairman to CNBC TV18

-- Need to take the airline to even higher growth

YES Bank off day's high

NEWS ALERT | Truce between promoters sustainable: M Damodaran, chairman, IndiGo to CNBC TV18

-- Truce, however, is not peace

-- All previous transactions were certified by auditors

-- Share price of IndiGo has recovered most of its corrected price.

-- Working towards bringing peace between the airlines' promoters 

Gruh Finance gains 8% after HDFC sells 9% stake through block deal

Shares of Gruh Finance rallied up to 8 per cent to quote at Rs 270 apiece in the early morning trade on the National Stock Exchange (NSE) on Friday after mortgage lender Housing Development Finance Corporation (HDFC) sold nearly 9 percentage point stake in the company through block deal. READ MORE

Market check

Edelweiss Financial dips over 2%

Vedanta up 3%

Nifty IT index trades lower, weighed down by Mindtree, Tech Mahindra

Most active stocks by volume

REDINGTON INDIA 111.80 2.85 2.62 10572338
GRUH FINANCE 260.55 11.00 4.41 3074971
YES BANK 58.40 1.05 1.83 2873288
VODAFONE IDEA 5.01 0.13 2.66 1173678
NATCO PHARMA 545.40 4.70 0.87 900834
» More on Most Active Volume

Market check

NEWS ALERT | National level PSBs-Fin Min meet likely in a few days: sources to CNBC TV18

-- Fin Min to hold review meet with PSBs

Tata Steel gains 3%

Nifty Metal index gains on US-China trade talks optimism

Nifty hits 11,000

Vodafone Idea jumps 4%

NEWS ALERT | L&T's power business bags order in range of Rs 2,500-Rs 5,000 cr from THDC: BSE filing

Bombay Dyeing gains 6%

J&K Bank rises over 4%

Navkar Corp soars over 11%

LIC Housing Fin rises 2%

Mindtree slips 1.5% in morning deals

Glenmark Pharma trades mildly lower

DHFL adds 1.5%

-- DHFL’s lenders are planning to put loans worth Rs 30,000 - Rs 32,000 crore to builders to the special purpose vehicles (SPVs).

HCL Tech trades flat with negative bias

-- Purdue Pharma, which is being primarily blamed for the opioid epidemic and is in settlement talks in the US, is expected to pay as much as $12 billion and file for bankruptcy. The development could hurt HCL Technologies as it is the IT service vendor to the pharma company.

Hindalco trades 2% higher

-- US aluminum producer Novelis is set to secure EU antitrust approval for its $2.6 billion bid for Aleris, Reuters reported citing sources.

YES Bank trades nearly 1% higher

Cox & Kings declines 5%

-- Beleaguered tours and travel firm Cox & Kings on Thursday said it has received approval from the Registrar of Companies (ROC) for a 3-month extension for its annual general meeting 2018-19.

NEWS ALERT | 1.82% equity exchanged in Redington via block deal

HDFC trades flat

Gruh Finance gains over 5%

ICRA tradees 4.6% lower

Adani Green Energy zooms 8%

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

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

Market at Pre-open

Rupee opening

Rupee opens higher at 71.78/$ vs Thursday's close of 71.80 against the US dollar

Market at Pre-open

NEWS ALERT | Glenmark gets US FDA nod for Pimecrolimus cream, used to treat Atopic dermatitis

New FDI norms: Key online media companies feel the pinch of 26% cap

The government’s move to cap foreign direct investment in digital media in line with print media has left a few key players in the lurch.
News portal VCCircle, owned by NewsCorp, New-York-headquartered Quartz, which has a partnership with, and HuffPost, which operates independently in the country, will have to reduce their foreign holding to comply with the rules, experts said. READ MORE

New FDI norms: Govt plans mega meet to fast-track Make in India

Soon after announcing 100 per cent foreign direct investment (FDI) under automatic route for contract manufacturing, the government is rushing to explain the policy vision to the industry for fast-tracking the Make in India plan.
Telecom and IT minister Ravi Shankar Prasad has invited all stakeholders in the handset industry for a meeting next month to clear any doubt on the contract manufacturing policy, people in the know said.  READ MORE

Slowdown cyclical, but deep reforms needed, says RBI in its annual report

The macroeconomic environment remains “unsettled and financial markets are experiencing considerable flux” as the financial year 2019-20 progresses, the report said.
“The key question that confronts the Indian economy as it looks ahead to the rest of 2019-20 is: are we dealing with a soft patch, or a cyclical downswing, or a structural slowdown? This will determine the policy responses.” READ MORE

Moody's Indian arm ICRA terminates MD and Group CEO Naresh Takkar

Takkar had been on indefinite leave since July pending an inquiry by the Securities and Exchange Board of India (Sebi) after a whistle-blower alleged interference by top executives of the rating agency in issuing good ratings to Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries. Without disclosing reasons, ICRA informed the stock exchanges on Thursday, “The board, after due consideration and taking into account the best interests of the company and its various stakeholders, has decided to terminate the employment of Takkar with immediate effect.” READ MORE

Q1 GDP growth likely to be weaker at 5.5%, says RBI annual report

An internal assessment of the Reserve Bank of India (RBI) presented in its Annual Report broadly indicates that real growth in gross domestic product (GDP) in the first quarter of 2019-20 would be lower than that achieved in the previous quarter (Q4 FY19). The estimate for real GDP growth for Q1 FY20 is near 5.5 per cent, people with direct knowledge of the matter told Business Standard. The National Statistics Office (NSO) will present the government’s official estimate of GDP growth for Q1 FY20 on Friday. READ MORE

Stocks to watch: ICRA, HDFC, Gruh Finance, Adani Green, DHFL, Cox & Kings

Here's a look at the top stocks that may remain in focus today -
ICRA: The board of rating agency ICRA, an affiliate of Moody's, on Thursday terminated the services of its Managing Director and CEO Naresh Takkar, following appearance of his name in the IL&FS case. READ MORE
Cox & Kings: Beleaguered tours and travel firm Cox & Kings on Thursday said it has received approval from the Registrar of Companies (ROC) for a 3-month extension for its annual general meeting 2018-19. READ MORE

BSE ties up with Steel Users Federation of India for steel futures

Stock exchange BSE on Thursday said it has signed a pact with the Steel Users Federation of India (SUFI) to work towards enlisting steel futures and help in stronger and transparent steel trade.
"BSE and SUFI will work towards enlisting steel futures in both long and flat segments. This will bring in stability, avert risks and facilitate a level-playing field to one and all players," the bourse said in a release. READ MORE

Client securities: Sebi extends deadline by a month for brokers

The Securities and Exchange Board of India on Thursday gave an extended deadline to brokers to square off all client trades that were not fully paid. These were related to clients’ shares that were pledged by the brokers. Earlier, the deadline to square-off these trades was August 31, 2019, if the client was unable to meet the payment obligation.
Now, it has been extended till September 31, 2019. The shares can be disposed five days after this deadline, by giving notice to the client. There were fears that unwinding of these positions could have added to the selling pressure in the markets.

Sebi exonerates three former executives of NSE in co-location case

The Securities and Exchange Board of India (Sebi), in its order on Thursday, disposed of the show cause notice (SCN) issued to senior employees of the National Stock Exchange (NSE) on January 4, with respect to the co-location (colo) case. The capital markets regulator did not levy any monetary penalty.
The capital markets regulator exonerated former employees Subramanian Anand, Ravi Apte, and Umesh Jain, with respect to charges levelled against them, via a circular issued on Thursday. READ MORE

Demand woes, downgrades keep sheen off steel industry, say analysts

The JSW Steel and JSPL stocks slipped to their 52 week-lows on Thursday, while Tata Steel and SAIL were trading near their lows. The concerns surrounding declining steel realisations, on the back of soft demand, have weighed on share prices. A change in outlook for Asian steel producers to negative by Moody’s Investors Service on Wednesday added to concerns. READ MORE

Govt's surcharge rollback fails to curb FPI selling spree, say experts

The rollback of the tax surcharge on foreign portfolio investors (FPIs) has failed to curb their selling spree, and they have offloaded equities worth more than Rs 4,000 crore since Monday.
Experts say concerns about a slowdown in the domestic economy, combined with fears of a global recession, have eclipsed the move to withdraw the surcharge. READ MORE

Today's picks: From Asian Paints to YES Bank, hot stocks to watch on Friday

Bank Nifty
Current: 27,305 (fut 27478)
Target: NA
Stop long positions at 27,250. Stop short positions at 27,600. Big moves could go till 27,750, 27,100. Trend remains negative.
Asian Paints
Current: Rs 1,615
Target: Rs 1,640
Keep a stop at 1,600 and go long. Add to the position between 1,632-1,638. Book profits at 1,40. READ MORE

Here's a derivative strategy from HDFC Securities for Tech Mahindra

Buy Tech Mahindra September Future @ Rs 691 | Stop loss of Rs 680 | Target Rs 710
-- We have seen long build up in the Tech Mahindra Sept futures’, where we have seen sharp rise in Open Interest with price rising by 0.2 per cent.
-- Stock price has already broken out on the daily chart by closing above the resistance level of 680 level last week. READ MORE

Commodity outlook and top two trading ideas by Tradebulls Securities

Weak Chinese Yuan has set the stage for Indian rupee to depreciate till 72.50-72.80. Chinese Yuan is trading at 10 year-low and the Indian market is also witnessing correction which is making rupee vulnerable. Any dips can be bought till 71.40 is not breached on the downside. With trade war spilling into currency war, we don’t expect a Chinese Yuan to come below 7.07. So, expect the rupee to depreciate further from here. READ MORE

Nifty Outlook and top trading ideas by CapitalVia Global Research Limited

Nifty View
The Nifty traded lower on Wednesday, after gaining for three consecutive trading days. It managed to close at 11,046.10 shading 59.25 points. Banking and automobile shares were in pain and we saw buying in IT stocks as Rupee depreciated on intraday. Niftybank shed 1.14 percent and closed at 27,804.30, losing 321.85 points, which hurt the market sentiment. READ MORE

Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday

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

Rupee Check

Source: Bloomberg

Oil Check

At 8:12 am, Brent Crude Futures were at $60.41 per barrel.

SGX Nifty

At 8:10 am, the Singaporean Exchange for Nifty Futures was trading 10 points lower at 10,997 level.

Asian Market Check

Source: Reuters

US Market Check

Source: Reuters

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