MARKET WRAP: Sensex slips 167 pts, Nifty ends at 10,981; YES Bank loses 5%

After trading flat for most part of the session, benchmark indices witnessed sharp decline in the fag-end of the trade on Thursday as investors turned cautious ahead of European Central Bank's (ECB) policy meeting later in the day. It is widely expected that the ECB will deliver stimulus to arrest a slowing global economy.

That apart, investors also await key macro data such as IIP (index of industrial production) numbers for July and retail inflation (CPI) print for August due later in the day. 

The S&P BSE Sensex shed 167 points or 0.45 per cent to settle at 37,104.28, with ICICI Bank (up 2 per cent) being the top gainer and YES Bank (down 5 per cent) the biggest loser. 

On NSE, the Nifty50 index slipped below the crucial 11,000 level to close at 10,981, down 55 points or 0.50 per cent. Out of 50 constituents, 15 advanced while 35 declined. 

Volatility index India VIX dropped over 3 per cent to end at 14.88 levels. 

In the broader market, the S&P BSE MidCap index lost 25 points, or 0.18 per cent, to close at 13,610.09 levels, and the S&P BSE SmallCap index rose 16 points, or 0.12 per cent, to 12,908 levels.

Among the sectoral indices on NSE, auto stocks bled the most, followed by FMCG, realty and IT stocks. The Nifty Auto index ended at 7,288.90, down 135 points or 1.81 per cent.

BUZZING STOCKS

Walchandnagar Industries (WIL), the heavy engineering products company, hit an upper circuit limit of 20 per cent at Rs 72.15 apiece on the BSE after the company secured an order worth Rs 77.20 crore plus escalation from the Vikram Sarabhai Space Centre of Indian Space Research Organisation (ISRO).

Zee Media ended 8 per cent higher after its chief financial officer (CFO) resigned with effect from close of business on September 13, 2019.

 
GLOBAL MARKETS

Asian stocks advanced to a six-week high on Thursday on hopes for a thaw in US-China trade relations and expectations that the European Central Bank would kick off another wave of monetary easing by global central banks. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent and Tokyo’s Nikkei stock index rose 0.96 per cent. Australian shares were up 0.2 per cent.

Following suit, European shares, too, opened at their highest level since July 30. Investors widely expect the central bank to announce an interest rate cut for the first time since 2016 and restart an asset purchase program. But analysts have warned against setting expectations too high.

(With inputs from Reuters)

3:56 PM IST The Nifty has formed a probable inverse 'Head and Shoulder' pattern and has its neckline at 11,150 levels. There will be support around the 10,850-10,800 levels, which is likely to act as a cushion on the lower side in case of a decline. The index has been witnessing consolidation since past few sessions, but market breadth continues to remain positive. The index should head up going forward. We expect the index to test 11,300-11,500 zone on the upside and continue to remain bullish. Support: 10,870-10,750; Resistance: 11,050-11,150 (Source: Manav Chopra, head of research for equity, Indiabulls Ventures)

3:53 PM IST

3:51 PM IST

3:50 PM IST

3:49 PM IST

3:42 PM IST The S&P BSE Sensex lost 167 points or 0.45 per cent to end at 37,104.28 while NSE's Nifty50 index ended at 10,981, down 55 points or 0.50 per cent. 

3:16 PM IST The three-year wage settlement will be implemented with retrospective effect from April 1, 2019, and will remain effective until March 31, 2022. The settlement will be applicable to all the permanent employees in Yamaha’s Chennai factory. READ MORE

3:15 PM IST - Priority is to work in the best interest of shareholders and stakeholders; - Pledge after Apollo Munich transaction will be 20%

2:49 PM IST Asian stocks advanced to a six-week high on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent and Tokyo’s Nikkei stock index rose 0.96 per cent. Australian shares were up 0.2 per cent. In early European trading, the futures for pan-region Euro Stoxx 50 were up 0.65 per cent, German DAX 0.6 per cent, and London’s FTSE 0.52 per cent. (From Reuters)

2:33 PM IST -- Promoter Group's stake stands atstands at 30.8 per cent post block deal

2:29 PM IST The gems and jewellery industry has entered a state of turmoil with the fall in exports increasing month after month. After an over 11 per cent fall in July, overall gross exports of gems and jewellery declined 14.44 per cent to $28.84 billion in August. The Gem and Jewellery Export Promotions Council’s (GJEPC) provisional data shows that during the current financial year, total gross exports have declined 8.92 per cent to $15.33bn. READ MORE

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COMMENT :: Tech view

The Nifty has formed a probable inverse 'Head and Shoulder' pattern and has its neckline at 11,150 levels. There will be support around the 10,850-10,800 levels, which is likely to act as a cushion on the lower side in case of a decline.

The index has been witnessing consolidation since past few sessions, but market breadth continues to remain positive. The index should head up going forward. We expect the index to test 11,300-11,500 zone on the upside and continue to remain bullish. Support: 10,870-10,750; Resistance: 11,050-11,150

(Source: Manav Chopra, head of research for equity, Indiabulls Ventures)

Stocks that contributed most to Sensex's fall


Tata Motors dips over 3% on the NSE


Auto stocks among worst-hit today


Sensex heat map


CLOSING BELL

The S&P BSE Sensex lost 167 points or 0.45 per cent to end at 37,104.28 while NSE's Nifty50 index ended at 10,981, down 55 points or 0.50 per cent. 


Yamaha signs 3-year wage settlement with workers at Chennai factory

The three-year wage settlement will be implemented with retrospective effect from April 1, 2019, and will remain effective until March 31, 2022. The settlement will be applicable to all the permanent employees in Yamaha’s Chennai factory. READ MORE

Apollo Munich deal should be completed by October: Apollo Hospitals to CNBC-TV18

- Priority is to work in the best interest of shareholders and stakeholders;
- Pledge after Apollo Munich transaction will be 20%

Global markets check

Asian stocks advanced to a six-week high on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent and Tokyo’s Nikkei stock index rose 0.96 per cent. Australian shares were up 0.2 per cent. In early European trading, the futures for pan-region Euro Stoxx 50 were up 0.65 per cent, German DAX 0.6 per cent, and London’s FTSE 0.52 per cent.

(From Reuters)

NEWS ALERT | Apollo Hospitals promoter group confirms selling 3.6% stake via block deal: BSE filing

-- Promoter Group's stake stands atstands at 30.8 per cent post block deal

Gems & jewellery industry in turmoil as exports fall sharply in August

The gems and jewellery industry has entered a state of turmoil with the fall in exports increasing month after month. After an over 11 per cent fall in July, overall gross exports of gems and jewellery declined 14.44 per cent to $28.84 billion in August. The Gem and Jewellery Export Promotions Council’s (GJEPC) provisional data shows that during the current financial year, total gross exports have declined 8.92 per cent to $15.33bn. READ MORE

Cadila Healthcare recovers on India, emerging market sales forecast

The Cadila Healthcare stock has rebounded 12 per cent after falling to its five-year low last month. The uptick, which came on the back of brokerage upgrades, was largely on expectations of earnings recovery. Analysts believe that investments in India and emerging markets (EMs), as well as new products, should help revenue growth with most concerns already priced in. READ MORE

Banks target weaker borrowers as credit growth slips: Why it's a risky bet

With business collateral losing its sheen, India’s top three private-sector banks have been expanding their credit card and personal loan business at 30 per cent-plus rates, double the pace of growth in their corporate loan book. They can’t keep up for long. If they try, they would only be storing trouble for the future. READ MORE    


MARKET CHECK | S&P BSE Energy index slips over 1%; RIL, HPCL among top losers


MARKET CHECK | 13 securities hit 52-week high on NSE

Source: NSE

Edelweiss Securities on ACC

We expect pan-India player ACC to be a prime beneficiary of the positive industry fundamentals – high industry clinker utilisation, bright demand outlook over medium term and benign fuel cost. We continue to value the stock at 12x CY20E EV/EBITDA and maintain ‘BUY/SP’ with a TP of Rs 1,846/share. The stock is trading at 9.4x CY20E EV/EBITDA.

InterGlobe Aviation and SpiceJet are ready to fly higher, show charts

At a time when the benchmark indices -- S&P BSE Sensex and NSE's Nifty50 -- are hovering around 37,200 and 11,000 levels and have remained mostly flat thus fgar in September, aviation stocks such as InterGlobe Aviation (parent company of IndiGo) and SpiceJet are showing a decent formation on the technical charts. While InterGlobe Aviation is heading towards a new all time high, SpiceJet has managed to absorb selling pressure at around Rs 150 levels from April this year. READ MORE

IRB Infra up 5%


After strong gains the past 4 months, some headwinds for Nestle stock

Shares of Nestle India, have been in demand among investors, having risen by about 25 per cent in the past four months. In contrast, the Nifty 50 and Nifty FMCG indices has lost about two per cent each in the same period. Double-digit volume-led topline growth in the June 2019 quarter, even as most of its FMCG peers saw their volumes decline, and recent inclusion of the stock in the Nifty 50 index, turned investors bullish on the maker of Maggi noodles, Nescafe and Kit Kat chocolates. READ MORE

Indiabulls Housing Finance up over 5%


NEWS ALERT | L&T Construction bags orders of Rs 1,000 cr- Rs 2,500 cr in Maharashtra and Odisha: Exchange filing


Emami zooms 4%


BUZZING STOCK:: Dishman Carbogen Amcis


Earnings pressure to persist even in September quarter, says Gautam Duggad

The June quarter performance of India Inc was subdued with majority of the companies seeing their earnings getting downgraded, said Gautam Duggad, head of research, institutional equities, Motilal Oswal Financial Services. Given the macro economic backdrop, corporate earnings will remain under pressure in the September quarter as well, Duggad tells Sundar Sethuraman. READ MORE

InterGlobe Aviation at fresh all-time high


YES Bank cracks 4%


Nifty sectoral indices at this hour


Tide is turning for mid, smallcaps. Buy selectively for long-term: Analysts

The tide seems to be slowly turning for the mid-and small-cap segments. After a sharp correction post the presentation of Budget in July 2019 that dragged the S&P BSE Midcap and S&P BSE Smallcap indices lower by 9.8 per cent and 12.6 per cent, respectively till August 30 (S&P BSE Sensex down 6.5 per cent during this period), the sentiment in both these segments has started to pick up in September. READ MORE

Rupee check


Walchandnagar Ind hits 20% upper circuit after winning order from ISRO

Walchandnagar Industries (WIL), the heavy engineering products company, hit an upper circuit limit of 20 per cent at Rs 72.15 apiece on the BSE after the company secured an order worth Rs 77.20 crore plus escalation from the Vikram Sarabhai Space Centre of Indian Space Research Organisation (ISRO). The order is towards manufacturing and supply of Head, Middle and Nozzle End segments (total 30 nos) for the GSLV M Klll launch vehicle.  READ MORE

Value and contra funds disappoint investors, fail to beat benchmark returns

Mutual fund (MF) investors who have made allocations to value and contra funds are yet to see meaningful outperformance on their investments. According to data from Value Research, 13 of 15 such schemes have failed to beat the benchmark returns over a three-year period. Industry experts say the value calls may take more time to play out, given certain sectors are facing structural challenges rather than short-term issues. READ MORE

Sensex turns flat


SBI Life Insurance shares slip 2% as SBI's two-day OFS begins

SBI Life Insurance Company dipped 2 per cent to Rs 786 in Thursday's early morning trade on the BSE as the two-day offer for sale (OFS) in the company by the State Bank of India (SBI) opened today. The SBI plans to sell up to 3.5 crore equity shares (3.5 per cent of the total paid-up equity) in its insurance arm on September 12-13, as per SBI Life Insurance Company's exchange filing. READ MORE

Raymond zooms 4%


MARKET CHECK | Top losers on the BSE at this hour


After strong gains the past 4 months, some headwinds for Nestle stock

The stock’s outperformance, however, has also led to pricey valuation or price-earnings ratio (P/E). At 58 times its CY20 estimated earnings, the Nestle stock not only trades at a staggering 28 per cent premium to its own long-term one-year forward P/E, but its valuation is 20 per cent higher that of Hindustan Unilever, India’s largest FMCG company, as well. READ MORE  


ICICI Securities on EIH

While EIH has certain company specific issues to deal with, industry tailwinds for the hotels business would provide the necessary cushion. Further healthy balance sheet, stable margins and opening up of new properties lead us to maintain a positive outlook despite the recent setbacks. We thus have a BUY rating on the company, valuing it at 25x FY21E EV/EBITDA arriving at a target price of Rs 210 per share.
 

Edelweiss Securities initiates coverage on IndiaMART InterMESH

We believe IndiaMART is on the cusp of strong profit growth momentum led by revenue growth and high operating leverage. Deferred revenue of Rs 6.1bn – 1.1x of TTM – provides strong visibility. The stock’s current valuation at 24x FY21E P/E is attractive vis-a-vis growth prospects in our view. We are initiating coverage with a ‘BUY’ and target price of Rs 1,900, valuing it at 33x Q3FY21E EPS.

Walchandnagar Industries surges 20%


Sensex extends gains


Momentum Picks by ICICI Securities

 

Apollo Hospitals surges 5% on promoter stake sale reports

Shares of Apollo Hospitals gained over 5 per cent to Rs 1,574.95 apiece on the BSE in the opening deals on Thursday after the promoter group family of the company said it will be issuing five million shares through secondary placement to raise around $101 million (Rs 720 crore). However, minutes later, the stock pared most of its gains and was trading around half a per cent higher at Rs 1,504.10. In comparison, the S&P BSE Sensex was trading at 37,396.40 levels, up 126 points or 0.34 per cent. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
FUTURE RETAIL 407.50 3.05 0.75 7408880
VODAFONE IDEA 5.84 0.11 1.92 515534
YES BANK 71.40 -0.20 -0.28 371865
TATA MOTORS 134.00 -0.35 -0.26 164927
SUZLON ENERGY 3.09 0.07 2.32 101813
» More on Most Active Volume

BUZZING STOCK:: Edelweiss Financial Services up over 3%


Metal stocks gain amid positive global cues


Reliance Nippon Life slips over 3% as OFS gets oversubscribed


Gujarat Alkalies rises 3% on reports co's board may soon consider stock split


Titan Company up 1% as ICRA assigns A1+ rating for its Rs 900-cr commercial paper


State Bank of India gains as it looks to offload up to 4.5 percent stake in SBI Life Insurance Co


ICICI Bank climbs 2%; top gainer in Sensex


Apollo Hospitals gains 3%


Top gainers on the BSE at this hour


Sectoral gainers and losers on the NSE


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


OPENING BELL

Sensex gains over 100 points, Nifty above 11,050 levels; ICICI Bank surges 2%

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


Market at pre-open


Rupee opening

Rupee opens stronger at 71.43/$ vs Wednesday's close of 71.65 against the US dollar

Stocks to watch

SBI, SBI Life: SBI said it will raise up to Rs 3,465 crore by offloading up to 4.5 percent stake in SBI Life Insurance Co to bring down the promoter shareholding as per regulatory norms.
 
Apollo Hospitals: The promoter group family of Apollo Hospitals Enterprise (AHEL) will be issuing five million shares through secondary placement to raise around $101 million (Rs 720 crore). READ MORE

Record gold prices would take sparkle off diamonds: Citigroup analyst

Citigroup’s prediction that gold could rally above $2,000 an ounce in two years would be negative for another precious and shiny commodity: diamonds, according to Barry Ehrlich, an analyst at the bank. Citi’s bullish scenario for gold is based on drivers including the prospect of the Federal Reserve cutting interest rates to zero, rising risks of a global recession and heightened geopolitical tensions. READ MORE

Top stock picks by Tradebulls Securities

BUY ESCORTS
 
CMP: Rs 530.70
 
TARGET: Rs 570
 
Positive sector outlook and a fresh breakout from the continuation formation on the daily scale warrant upmove to continue in the short term. The breakout has been supported with fresh OI additions primarily on the long side. Momentum traders can still add longs with a stop below Rs 518 for a pattern target close to Rs 570 with a minor hurdle near Rs 550. READ MORE

Bulk deals on BSE as on Wednesday

Deal Date Security Code Security Name Client Name Deal Type * Quantity Price **
11/09/2019 541401 ARIHANTINS ARUNKUMAR DASHRATHBHAI PRAJAPATI B 52,000 5.67
11/09/2019 541401 ARIHANTINS ARUNKUMAR DASHRATHBHAI PRAJAPATI S 52,000 5.59
11/09/2019 590122 ASHIKACR DEEPAK KUMAR B 36,000 37.50
11/09/2019 590122 ASHIKACR SEEMA S 40,000 38.00
11/09/2019 539447 BEARDSELL ANUMOLU ANUMOLU BHARAT S 1,563,694 12.00
11/09/2019 539447 BEARDSELL JAGDISH AMRITLAL SHAH B 200,000 12.00
11/09/2019 539447 BEARDSELL VINODCHANDRA MANSUKHLAL PAREKH B 1,300,000 12.00
11/09/2019 542641 CKFSL ALPHA LEON ENTERPRISES LLP B 1,300,015 .52
11/09/2019 542641 CKFSL ALPHA LEON ENTERPRISES LLP S 22 .55
11/09/2019 542641 CKFSL KARST PEAK ASIA MASTER FUND S 449,838 .52
Click here for full list

Bulk deals on NSE as on Wednesday

Date Symbol Security Name Client Name Buy / Sell Quantity Traded Trade Price /
Wght. Avg. 
Price
Remarks
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd ALPHA LEON ENTERPRISES LLP BUY 38 0.71 -
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd ALPHA LEON ENTERPRISES LLP SELL 13,00,050 0.69 -
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd KARST PEAK ASIA MASTER FUND SELL 13,15,254 0.72 -
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd KARST PEAK VERMILION PARTNERS MASTER FUND SELL 7,31,432 0.72 -
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd MULTIPLIER S AND S ADV PVT LTD BUY 7,56,399 0.68 -
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd MULTIPLIER S AND S ADV PVT LTD SELL 4,57,399 0.66 -
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd VIJIT ASSET MANAGEMENT PRIVATE LIMITED BUY 11,00,000 0.65 -
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd VIJIT TRADING BUY 9,00,000 0.75 -
11-Sep-2019 CKFSL Cox & Kings Fin Serv Ltd XANDER FINANCE PRIVATE LIMITED SELL 9,33,079 0.65 -
11-Sep-2019 COX&KINGS Cox & Kings Limited SETU SECURITIES PVT LTD SELL 10,00,010 3.60 -

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


Rupee check

Source: Bloomberg


Oil check

-- Oil prices slumped more than 2 per cent after a report that Trump weighed easing sanctions on Iran, which could boost global crude supply. US crude settled down $2.87 at $55.75 per barrel and Brent settled at $60.81, down 2.52% on the day.

-- At 8:32 am, Brent Crude Futures were at $61.25 per barrel.

SGX Nifty

At 8:30 am, SGX Nifty was trading 36 points higher at 11,073 level.

US Market check


TRADE SET UP | Asian stocks trade higher

Asian stocks rose on Thursday on hopes for a thaw in US-China trade frictions and expectations that the European Central Bank will kick off another wave of monetary easing by global central banks. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent and Japan's Nikkei stock index rose 1 per cent. Australian shares were up 0.41 per cent.
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