MARKET WRAP: Sensex surges 164 pts, Nifty ends at 11,003; banks, autos gain

Topics Markets | MARKET WRAP

Extending their gains for the second straight day, equity benchmark indices ended in the positive territory on Monday led by buying in counters such as HDFC, Larsen & Toubro (L&T), ICICI Bank, Maruti and Bajaj Finance. 

The S&P BSE Sensex added 164 points or 0.44 per cent to settle at 37,145.45, with YES Bank (up over 4 per cent) being the top gainer and HCL Tech (down 1.50 per cent) the worst performer. 

On NSE, the Nifty50 index reclaimed the crucial 11,000 level to settle at 11,003.05, up 57 points or 0.52 per cent. Out of 50 constituents, 35 advanced while 15 declined. 

Volatility index India VIX slipped around 3 per cent to settle at 15.79. 

Market breadth was in favour of the bulls as out of 2,719 stocks traded on the BSE, 1,602 advanced, 935 declined while 182 remained unchanged. 

In the broader market, the S&P MidCap index surged 130 points, or 0.97 per cent, to 13,495 levels, and the S&P BSE SmallCap ended at 12,709.96, up 115 points or 0.92 per cent. 

On the sectoral front, all the indices on NSE, except Nifty IT index ended in the red. PSU bank stocks gained the most, followed by private bank and auto counters. The Nifty PSU Bank index gained 1.61 per cent to settle at 2,419.70.  

GLOBAL STOCKS

Global stock markets gained on Monday as investors pinned their hopes on stimulus that’s expected from the world’s central banks to support slowing growth. European markets opened higher after data showed a surprise rise in German exports and on expectations of stimulus by the European Central Bank later this week. MSCI’s All Country World Index, which tracks shares across 47 countries, was up 0.05 per cent. 

In Asian markets, China's blue-chip CSI300 index was up 0.6 per cent at 3,972.95, while the Shanghai Composite Index added 0.8 per cent to 3,024.74 points. Chinese yuan softened after Beijing’s latest stimulus package.

(With inputs from Reuters)


3:55 PM IST

3:55 PM IST Markets will remain closed on Tuesday, September 10, on account of Moharram

3:52 PM IST (Index level and % change; Image source: NSE)

3:50 PM IST

3:49 PM IST

3:48 PM IST

3:43 PM IST The S&P BSE Sensex rallied 164 points or 0.44 per cent to settle at 37,145.45, while NSE's Nifty50 index ended at 11,003, up 57 points or 0.52 per cent.

3:20 PM IST

3:04 PM IST -- Total net equity inflows up 12.3% on a MoM basis at Rs 9,090 cr vs Rs 8,092 cr

2:59 PM IST

2:58 PM IST "Domestic PV Wholesale dispatches declined by 30%+ for the second consecutive month, in the backdrop of subdued consumer sentiments and tighter financing environment. Deferment in purchases by consumers in anticipation of GST revision and steep discounting ahead of BS-VI rollout further dented demand. The government has taken various initiatives to ease liquidity crunch, though it will be unlikely to provide any immediate respite to the industry," says Ashish Modani, Vice President & Co-Head, Corporate Ratings, ICRA.

2:44 PM IST -- For loans up to Rs 30 lakh

LIVE UPDATES

Top contributors to Sensex's gain on Monday


ALERT :: Market holiday

Markets will remain closed on Tuesday, September 10, on account of Moharram

PSU banks gained ground in trade today

(Index level and % change; Image source: NSE)



Mid-and small-caps outperform


Key indices on BSE


Sensex heat map


CLOSING BELL

The S&P BSE Sensex rallied 164 points or 0.44 per cent to settle at 37,145.45, while NSE's Nifty50 index ended at 11,003, up 57 points or 0.52 per cent.

MARKET CHECK | Top gainers on the BSE at this hour


August Mutual Fund data

-- Total net equity inflows up 12.3% on a MoM basis at Rs 9,090 cr vs Rs 8,092 cr

NEWS ALERT | Skipper bags order worth Rs 524 cr from Power Grid


ICRA Comments on Monthly Auto Sales (Passenger Vehicles)

"Domestic PV Wholesale dispatches declined by 30%+ for the second consecutive month, in the backdrop of subdued consumer sentiments and tighter financing environment. Deferment in purchases by consumers in anticipation of GST revision and steep discounting ahead of BS-VI rollout further dented demand. The government has taken various initiatives to ease liquidity crunch, though it will be unlikely to provide any immediate respite to the industry," says Ashish Modani, Vice President & Co-Head, Corporate Ratings, ICRA.

NEWS ALERT | Bajaj Housing Finance reduces home loan rates to 8.6% from 8.8%

-- For loans up to Rs 30 lakh


NEWS ALERT | Gujarat Metro Rail Corp revives contract with IL&FS Engg: BSE filing

--  Contract revived for construction work in Ahmedabad Metro Project- Phase I

-- Revived without changes in financial terms of original contract

-- IL&FS to complete project within 15 months

Alert: GMRC had terminated contract on Jan 19, 2019

Mitsubishi gets CCI nod to increase TVS Automobile Solutions stake to 25%

The Competition Commission of India (CCI) on Monday said it has given nod to Japan-based Mitsubishi Corporation for increasing stake in TVS Automobile Solutions to 25 per cent. 
 
The CCI in a tweet said it "approves increase in shareholding of Mitsubishi Corporation in TVS Automobile Solutions Private Limited from 3.26 per cent to 25 per cent".  READ MORE

NEWS ALERT | Kopran board to consider and approve early redemption of 5.5 mn unlisted preference shares at face value of Rs 10 each on Sept 11: BSE filing


Nifty IT index dips 0.9% as Rupee strengthens


NEWS ALERT | Union Bank board approves raising upto Rs 17,200 cr via equity and tier-II bonds

-- Board approves amalgamation of Andhra Bank and Corporation Bank into company


Contribution to Sensex


Ashok Leyland sheds 3% as it declares non-working days across units

Shares of commercial vehicle maker Ashok Leyland slipped up to 2.8 per cent to Rs 62.1 apiece on the BSE on Monday after it announced no working days at various manufacturing plants for September, due to the continued weak demand for its products.
 
The company's Pantnagar plant will have as many as 18 non-working days in September, while the Ennore unit would have 16. The Alwar and Bhandara plants would have 10 non-working days each, while Hosur 1 and 2 and CPPs will have five such days, the company informed the exchanges READ MORE

NEWS ALERT | CBIC extends GST return filing date

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
SUZLON ENERGY 2.86 -0.34 -10.63 6500286
YES BANK 61.70 1.30 2.15 6143142
VODAFONE IDEA 5.25 0.07 1.35 5561624
REL. COMM. 0.76 0.03 4.11 4873470
TATA MOTORS 121.35 0.25 0.21 2109913
» More on Most Active Volume

Bajaj Finserv trades 2% higher


DHFL surges 12% on payment of pending amount to DSP Mutual Fund, IDBI AMC

DHFL shares zoomed as much as 12 per cent intra-day to Rs 51.95 apiece on the National Stock Exchange (NSE) on Monday after paying the entire pending amount to DSP Mutual Fund. DSP Mutual Fund had an exposure of Rs 150 crore to Commercial Papers (CPs) issued by DHFL with scheduled maturity on June 25, 2019. The company had made part payments of Rs 60 crore on June 28, 2019, cumulatively paying Rs 75 crore (equivalent to 50 per cent of the total exposure) till June 28, 2019. READ MORE

Dilip Buildcon stock surges 11% as company mulls sale of 7 more HAM assets

The company is in talks to sell seven more HAM assets, said Rohan Suryavanshi, Head - Strategy and Planning at Dilip Buildcon, in an interaction with CNBC-TV18 . The company's standalone debt would stand at Rs 3,300 crore while its consolidated debt would reduce by Rs 1,800 crore as a result of sale of five HAM assets, Suryavanshi said. READ MORE


Bank of Baroda plans to raise capital up to Rs 3,000 cr via tier-II bonds

Public sector lender Bank of Baroda (BoB) plans to raise capital up to Rs 3,000 crore through tier-II bonds for meeting capital adequacy norms for the merged entity (integration of Vijaya and Dena Bank with BoB).
 
Rating agency India Ratings has assigned “AAA” stable rating to proposed bond offering by the PSB. Ratings for state-owned lender factors in large franchise, a pan-India presence, adequate funding base and liquidity. BOB is amongst the better capitalised PSBs, with a common equity tier I capital of 8.49 per cent in 1QFY20 (June 2019) and a capital adequacy ratio of 11.50 per cent. READ MORE

NEWS ALERT | Infosys collaborates with Microsoft for digital transformation of a Philippines-based Co: BSE Filing


NEWS ALERT | Received the balance Commercial Paper amount of Rs 12.5 cr from DHFL on Saturday: IDBI AMC


Passenger vehicle sales dip 31.6% in Aug; down ten months in a row: SIAM

India's domestic passenger vehicle sales fell for the tenth straight month in August, declining 31.57 per cent to 1,96,524 units from 2,87,198 units in the year-ago period. Domestic car sales were down 41.09 per cent to 1,15,957 units as against 1,96,847 units in August 2018, according to data released by the Society of Indian Automobile Manufacturers (SIAM) released on Monday. READ MORE

Auto slowdown: Ashok Leyland declares non-working days across units in Sept

Ashok Leyland has announced non-working days across its plants for the month of September, due to the continued weak demand for its products.
 
The company's Pantnagar plant will have as many as 18 non-working days in September, while the Ennore unit would have 16. The Alwar and Bhandara plants would have 10 non-working days each, while Hosur 1 and 2 and CPPs will have five such days. READ MORE


Dilip Buildcon surges over 9%


Sensex holds gains


Sharp surge in DHFL


Sical Logistics hits 5% upper circuit on reports Coffee Day may sell stake

Shares of Sical Logistics were locked in the upper circuit band of 5 per cent at Rs 27.05 apiece, after reports said the parent firm Coffee Day Enterprises (CDEL) has decided to sell entire stake in the company to pare company's debts.
 
"Coffee Day Enterprises has hired ICICI Securities as adviser for the potential transaction, which could see the group holding company raise Rs 1,000-1,500 crore," business dailyMint reported, quoting unnamed sources. READ MORE

BUZZING STOCK:: Shankara Building Products


Can Fin Homes surges nearly 4% after Canara Bank invites bid to sell stake

Bids have been invited through merchant bankers for sale of 3,99,30,365 equity shares of the face value of Rs 2 each, constituting 29.99 per cent, Canara Bank said on Friday in a regulatory filing.
 
The decision to invite bids comes ahead of amalgamation of Syndicate Bank with Canara Bank. READ MORE

Rupee gains 15 paise


NEWS ALERT | August SIAM data

-- 2-wheeler slaes down 22.2% YoY at 15.1 lakh units
 
-- Commerical vehicle sales down 38.7% YoY at 51,897 units
 
-- Vehicle exports up 2.4% YoY at 4.2 lakh units
 
-- Passenger car sales down 41.1% YoY at 1.15 lakh units

Market check


Nifty past 11,000


Eveready hits 5% lower circuit on report Duracell plans to buy co's assets

Eveready Industries shares were locked in 5 per cent lower circuit at Rs 70.50 apiece on the BSE on Monday on reports that Duracell Inc, owned by Warren Buffett's Berkshire Hathaway, is set to acquire the company's battery and flashlight business in a slump sale for Rs 1,600-1,700 crore.  The deal includes manufacturing plants, distribution network and the Eveready brand, The Economic Times said in its report. READ MORE

FMCG stocks gain


NEWS ALERT | Ashok Leyland announces non-working days across various cities: BSE Filing

-- Non-working days announced for Ennore, Alwar, Bhandara, Pantnagar & Hosur 1,2 and CPPS units due to weak demand

 

SBI trades flat with positive bias


Sugar prices have slumped to lowest in 11 months and the world blames India

The Indian government’s policies on subsidies and export quotas spurred a challenge from other producers at the World Trade Organization. The escalating rift is said to be on Brazilian President Jair Bolsonaro’s agenda for a visit to India in November, the International Sugar Organization said in a report. READ MORE

NEWS ALERT | State Bank of India cuts lending rate by 10 bps across all tenors w.e.f Sep 10

--  Also cuts 1-yr MCLR to 8.15% from 8.25%

-- Cuts retail term-deposit rates by 20-25 bps, cuts bulk term-deposit rates by 10-20 bps

Market check


Equitas dips 10% as RBI denies listing extension for its small finance bank

Shares of Equitas Holding crashed 10 per cent to trade at Rs 104.4 apiece on the BSE on Monday, after Reserve Bank of India (RBI) denied to extend deadline for its subsidiary Equitas Small Finance Bank (ESFB), to get listed at the bourses.
 
"As the regulator did not consent to this (extension of the deaadline) proposal, the Boards of EHL and ESFB had approved a Scheme of Arrangement wherein, ESFB would capitalize its free reserves and issue shares of ESFB to the shareholders of EHL without cash consideration, in proportion to their holding in EHL. This Scheme of Arrangement was subject to approval from SEBI, RBI, NCLT, Shareholders and creditors," Equitas Holdings (EHL) said in an exchange filing. READ MORE

Indian consumers remain confident despite economic slowdown: Nielsen

Notwithstanding the slowdown, Indian consumers seem confident about the future, the data from market research agency Nielsen shows.
 
India topped the global consumer confidence index in April-June at 138, the highest in six quarters, coming at a time when domestic economic growth has fallen sharply. READ MORE

Motilal Oswal Financial Services on Coal India

In our view, from India’s standpoint, coal is here to stay, despite increasing renewable generation (unless storage technology develops). At current price, Coal India’s market cap = 12 years of its discounted free cash flow (FCF). We reiterate our Buy rating with a target price (TP) of Rs 264 (36% upside). 

Let equity markets worry about cars, bond investors have eyes on the road

India’s plunging auto sales are making investors nervous. Their bigger worry should be the vanishing new roads. The country’s top six automakers reported a 29% decline in August sales. A 45% slump in commercial vehicle sales by Tata Motors Ltd., the No. 1 Indian truck maker, added to the gloom. With GDP growth facing its longest slump since 2012, India is in a quasi-recession, Teresa John, an economist at Nirmal Bang Equities Pvt. in Mumbai, said in a report this week. READ MORE


Momentum picks by ICICI Securities


Rupee opens 5 paise higher at 71.67 against US dollar

The rupee on Monday opened five paise higher at 71.67 against the US dollar amid rise in crude oil prices and Asian equities. The domestic unit continued its winning momentum for a third session in a row on Friday, rising 12 paise to settle at 71.72. READ MORE


NBCC trades 2% higher


Varun Beverages slips in trade


Shilpa Medicare zooms 4%


Hero MotoCorp trades 1% lower


ABB trades in the red


Eveready Industries trades higher


Gail trades flat with negative bias


Equitas Holdings slumps nearly 8% in Opening Trade


Maruti Suzuki trades with over 2% cut


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 marginally higher at 71.70/$ vs Friday's close of 71.72 against the US dollar

Market at Pre-open


Stocks to watch

Gail: Canada’s Brookfield Asset Management and Singapore’s Temasek Holdings have joined the race to buy the gas pipeline assets of state-run Gail (India), according to a report by Mint.
 
ABB India: According to a report by Bloomberg Quint, the indirect tax investigating agency found ABB India evaded goods and services tax by wrongly classifying equipment. READ MORE

Despite several headwinds, analysts are turning positive on L&T stock

After a cautious and calculated guidance on order inflows by India’s infrastructure behemoth Larsen and Toubro (L&T) for FY20, the past few weeks seem to have pleasantly contrasted the projection. From the EPC (engineering, procurement and construction) contract for Navi Mumbai airport to a 1,320-megawatt boiler EPC order from THDC, worth about Rs 5,000 crore, the going has thus far been good for L&T in terms of orders. READ MORE

18 PSBs hit by 2,480 cases of fraud of over Rs 31,000 cr in Q1: RTI

A total of 2,480 cases of fraud involving a huge sum of Rs 31,898.63 crore rattled 18 public sector banks in the first quarter of this fiscal, an RTI query has revealed. The country's largest lender State Bank of India (SBI) remained the biggest prey to frauds with 38 per cent share, Neemuch-based activist Chandrashekhar Gaur told PTI on Sunday quoting an official of the RBI who furnished him replies to his RTI application. READ MORE

In a first, Maruti Suzuki to lease 100 sales outlets to car dealers

In a first for a passenger vehicle maker in the country, Maruti Suzuki India (MSIL) will soon start leasing nearly 100 outlets for showrooms and workshops to its principal dealers, based on a lottery system. In the past few years, the carmaker has acquired land parcels to build showrooms as part of its strategy to expand its reach in rural and semi-urban markets and deploy the surplus cash on its books, said a top official at the company. READ MORE

Auto industry may have to wait longer for GST cut on cars from 28% to 18%

The auto industry may be desperate for a cut in the goods and services tax (GST) on cars from 28 to 18 per cent, but the bleak revenue position has prompted the GST fitment committee to hold back from approving such a reduction. “With the revenue situation quite grim, one cannot recommend a rate cut on autos at this stage, which is one of the highest revenue contributors. READ MORE

Planning to invest in MFs? Reliance Large Cap Fund is an outperformer

Launched in August 2007 as Reliance Top 200 Fund, the fund was renamed Reliance Large Cap Fund in April 2018 and repositioned as a large-cap fund post the reclassification of mutual funds by the Securities and Exchange Board of India. It featured in the top 30 percentile in the large-cap category of CRISIL Mutual Fund Ranking (CMFR) during the past three quarters ended June 2019. READ MORE

Suzuki Motor India to hold back investment due to slowdown, BS-VI norms

Suzuki Motorcycles India Pvt Ltd has decided to hold back its planned investments on capacity enhancement due to the ongoing slowdown in two-wheeler sales and expectation of a hit in the market by the transition to stricter BS-VI emission norm from BS-IV in April 2020, according to a senior company official.
 
The company, which is the only two-wheeler maker to post double digit growth so far this financial year, also said uncertainty created over electrification of two-wheelers had also played a role in parent Suzuki Motor Corporation to adopt a wait and watch strategy before finalising on setting up a new manufacturing plant in India. READ MORE

India is unlikely to underperform emerging markets, says Sanjay Mookim

It has been a roller-coaster ride for the Indian equity markets, given the slew of developments at home and globally. Sanjay Mookim, India Equity Strategist, Bank of America Merrill Lynch, tells Puneet Wadhwa that his fair value for the Nifty for December is 11,300. READ FULL INTERVIEW HERE
Sanjay Mookim, India Equity Strategist, Bank of America Merrill Lynch

Maruti, Bajaj Auto gain up to 12% in August. Time to exit auto stocks?

At a time when the auto companies in India are grappling with a steep drop in sales due to weak consumer demand, with several top automakers and component manufacturers cutting production and laying off employees, their performance at the bourses for the last month presents a totally different picture.
 
Shares of Maruti Suzuki India (MSIL), country's biggest carmaker, gained an impressive 12 per cent and was the top Nifty performer during this period. Bajaj Auto and Hero MotoCorp followed, rising 11 per cent and 9 per cent, respectively. In comparison, the benchmark Nifty index shed around a per cent while Nifty Auto index gained over 2 per cent during this period, ACE Equity data shows. READ MORE

Debt segment presents an interesting investment opportunity: S Naren

The recent policy announcements by the Finance Minister are positive and also sustainable. Going forward, there could be a case of government maintaining excess liquidity in the system such that there is faster transmission of rate cuts and that financial system does not come under duress. That apart, few multi-pronged growth strategy measures such as fast tracking infrastructure investments, raising export market share via competitiveness, attracting global value chains that are shifting away from China and prioritising domestic production over imports may be some of the steps implemented in order to revive the growth engine. READ MORE

Commodity picks: 9 September, 2019

Jeera
 
Jeera prices in Unjha market are trading at Rs 17,407 per quintal. Prices are expected to trade higher towards Rs 17,600 per quintal following steady export demand. Upcoming festive demand will also support the uptick.
 
Guar seed
 
Guar seed prices in Jodhpur are trading at Rs 4,160 per quintal. Prices are expected to trade lower towards Rs 4,000 per quintal in the approaching arrivals season and lethargic export as well as domestic demand. Stocks across the value chain are at higher levels. READ MORE

Stock calls by Sameet Chavan of Angel Broking: Buy Tata Steel, Bharat Forge

TATA STEEL
 
View – Bullish
 
Last Close – Rs.356.35
 
Of late, in the initial part of the correction, the stock did not move as per our expectations but now the way it’s shaped up, things look a bit encouraging. Also, the entire metal space has shown life in the week gone by after easing off some developments on the global front; augurs well for the counter. Technically speaking, after consolidating around its multi-year lows, stock managed to traverse its daily ’20-EMA’ for the first time in last two months. This resulted into a confirmation of ‘Dragonfly Doji’ pattern on weekly chart. We recommend buying this counter for a target of Rs.388 over the next few days. The stop loss should be fixed at Rs.337. READ MORE HERE

Nifty view and stock recommendation by Prabhudas Lilladher: Buy Bajaj Auto

NIFTY VIEW
 
Nifty has got its daily trend turned up after 3 days, while weekly and monthly continue to be down. Nifty for now has taken support of 10,750 to attempt for an inverted head & shoulder pattern. The support for the week is seen at 36,320/10,730 while resistance is seen at 37,600/11,150. Bank Nifty would have a range of 26,580-27,870. HDFC Bank looks promising from here on along with Axis. Metal and Auto sector too have shown signs of bounce back. READ MORE

Bulk deals on BSE as on Friday

Bulk deals on NSE as on Friday

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


Rupee Check

Sourcre: Bloomberg


Oil Check

-- Prices were heading north for a fourth day supported by comments from United Arab Emirates energy minister saying OPEC and its allies are committed to balancing the crude market

-- At 7:45 am, Brent Crude Futures were at $61.74 per barrel.
.


SGX Nifty

At 7:40 am, the Singaporean Exchange for Nifty Futures were trading 17 points higher at 10,976 level.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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