MARKET WRAP: Sensex slips 316 pts from day's high, ends 52 pts up; PSBs dip

Domestic indices pared gains in the afternoon trade to end flat on Monday. The benchmark S&P BSE Sensex rose 316 points to touch an intra-day high of 37,719 after hopes of a revivial package from the government lifted sentiment at D-Street. Sentiment was also supported by gains in the Asian markets.

 
The S&P BSE Sensex ended 52 points, or 0.14 per cent higher, at 37,402 levels with buying being witnessed across the board. Sun Pharma, Tech Mahindra, Axis Bank, and L&T ended the day as top gainers at the 30-share index, while YES Bank, Power Grid, State Bank of India, and ONGC settled as top laggards. The broader Nifty50, settled at 11,054 levels, up 6 points or 0.05 per cent.

Sectorally, pharma stocks gained the most, while public sector banks ended as the top losers. Nifty Pharma index closed 0.84 per cent higher, followed by gains in Nifty Media index, up 0.65 per cent, and Nifty Realty index, up 0.38 per cent. Nifty PSU Bank index settled 0.85 per cent lower.

In the broader market, S&P BSE mid-cap closed at 13,518 levels, up 27 points, or 0.20 per cent. The S&P BSE small-cap index settled 64 points higher, or 0.51 per cent, at 12,649 levels.

GLOBAL CUES

Global equity markets rose on Monday on signs that major economies would look to prop up stalling growth with fresh stimulus measures, easing pressure on bonds and dampening demand for perceived safe-havens such as gold.

Hopes of government action to stave off fears of recession - triggered by an inversion in the U.S. bond yield curve - grew as China’s central bank unveiled interest rate reforms expected to lower corporate borrowing costs.

MSCI's world equity index, which follows shares in 47 countries, gained 0.3 per cent, powered by a 0.8 per cent gain for the Euro STOXX 600 . Bourses in London .FTSE, Frankfurt and Paris rose between 0.7 per cent -0.9 per cent.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.1 per cent.

(With inputs from Reuters)


4:18 PM IST Nifty opened on a gap-up note and was seen trading with strong gains for major part of trading session. It, however, failed to sustain higher levels and closed flat. Nifty has witnessed good selling in 11000pe in weekly series which implies the index can find support near these10,980-11,000 levels. The index is forming 'C Clamp' formation on ichimoku charts and is expected to witness a move till 11220-11240 in next few trading sessions.   Same goes for Nifty Bank index, which has also formed 'C Clamp' on daily charts and can witness a move till 29,000 levels. It has also witnessed bullish MACD crossover, which is likely to keep the uptrend intact

4:15 PM IST Global trade optimism and rebound in IT & Pharma stocks provided an initial push to the market but the bulls failed to maintain the momentum due to absence of earnings growth. Industries are facing the heat of slowdown, while the market is expecting a solid intervention by government to revive the economy, until such announcements volatility may continue

3:44 PM IST

3:43 PM IST

3:40 PM IST The S&P BSE Sensex gained 52 points or 0.14 per cent to end at 37,402.49 while NSE's Nifty50 index settled at 11,054, up just 6 points or 0.05 per cent. 

3:22 PM IST -- Govt keen to allay concerns on use of BS-IV vehicles post April 2020 to help clear inventory

3:21 PM IST -- Govt yet to finalise relief measures, discussions underway

3:04 PM IST    

3:03 PM IST - Midcap staples, IT provide good investment opportunity

3:00 PM IST While global graphite electrode prices have witnessed a softening trend, the uptick in prices of key raw material (viz. needle coke) is likely to impact the company’s margin profile. We downward revise capacity utilisation level to 70.0% for FY20E (from 85% earlier) and to 75%for FY21E (from 85% earlier). We value the stock at 6x FY21E EPS and arrive at a target price of Rs 900. We maintain our REDUCE rating on the stock.

2:57 PM IST Power is one sector where investors should look at companies with an assured ROE (on average 15.5%-plus incentives) and increased fuel security (15-20% higher imports & an 8% increased supply from Coal India), which, in turn, would provide adequate earnings visibility and command a premium over current valuation. We initiate coverage of NTPC on inexpensive valuation (1.0x P/ABV), Tata Power on all negatives priced in, Torrent Power on strong earnings recovery & PTC India on attractive valuation with a Buy rating and JSW Energy on strong cashflow visibility, CESC on pure power play with earnings stability, Adani Power on turning profitable & Coal India on domestic growth story with an Accumulate rating. We have a Reduce rating on Power Grid Corporation as we believe its high capex story is over and earnings growth is tapering off.

LIVE UPDATES

TECH VIEW :: Gaurav Bissa, AVP (Derivatives and Technical), LKP Securities

Nifty opened on a gap-up note and was seen trading with strong gains for major part of trading session. It, however, failed to sustain higher levels and closed flat. Nifty has witnessed good selling in 11000pe in weekly series which implies the index can find support near these10,980-11,000 levels. The index is forming 'C Clamp' formation on ichimoku charts and is expected to witness a move till 11220-11240 in next few trading sessions.
 
Same goes for Nifty Bank index, which has also formed 'C Clamp' on daily charts and can witness a move till 29,000 levels. It has also witnessed bullish MACD crossover, which is likely to keep the uptrend intact

MARKET COMMENT :: Vinod Nair, head of research, Geojit Financial Services

Global trade optimism and rebound in IT & Pharma stocks provided an initial push to the market but the bulls failed to maintain the momentum due to absence of earnings growth. Industries are facing the heat of slowdown, while the market is expecting a solid intervention by government to revive the economy, until such announcements volatility may continue

Sectoral gainers and losers on the NSE


Top gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex gained 52 points or 0.14 per cent to end at 37,402.49 while NSE's Nifty50 index settled at 11,054, up just 6 points or 0.05 per cent. 

NEWS ALERT | BS-IV vehicles registered before April 1 2020 not to face any regulatory challenge

-- Govt keen to allay concerns on use of BS-IV vehicles post April 2020 to help clear inventory

NEWS ALERT | Govt to allay concerns on use of BS-IV vehicles post April 1 2020: sources to CNBC TV18

-- Govt yet to finalise relief measures, discussions underway

NEWS ALERT | KEC International wins order worth Rs 845 crore

 
 

Prefer two-wheelers over four-wheelers in this market: BNP Paribas to CNBC-TV18

- Midcap staples, IT provide good investment opportunity

ICICI Securities on HEG

While global graphite electrode prices have witnessed a softening trend, the uptick in prices of key raw material (viz. needle coke) is likely to impact the company’s margin profile. We downward revise capacity utilisation level to 70.0% for FY20E (from 85% earlier) and to 75%for FY21E (from 85% earlier). We value the stock at 6x FY21E EPS and arrive at a target price of Rs 900. We maintain our REDUCE rating on the stock.

Elara Capital on utilities sector

Power is one sector where investors should look at companies with an assured ROE (on average 15.5%-plus incentives) and increased fuel security (15-20% higher imports & an 8% increased supply from Coal India), which, in turn, would provide adequate earnings visibility and command a premium over current valuation. We initiate coverage of NTPC on inexpensive valuation (1.0x P/ABV), Tata Power on all negatives priced in, Torrent Power on strong earnings recovery & PTC India on attractive valuation with a Buy rating and JSW Energy on strong cashflow visibility, CESC on pure power play with earnings stability, Adani Power on turning profitable & Coal India on domestic growth story with an Accumulate rating. We have a Reduce rating on Power Grid Corporation as we believe its high capex story is over and earnings growth is tapering off.

MARKET CHECK | Most capital good stocks rally; S&P BSE Capital Goods up over 1%


ABB, Siemens, Thermax: How to trade capital goods stocks in this market?

ABB India Ltd (ABB): Although the counter is trading slightly below the 200-day moving average, it has not showed any signs of a bigger breakdown yet. That said, failing to hold above Rs 1,500 has led to price erosion. Going ahead, if the counter sustains above Rs 1,300 - its immediate support – then a rally towards Rs 1,500 may be expected. READ MORE

Market check


NEWS ALERT | Expect India MPC to pause in Oct; focus on rate-cut transmission: Industrial and Commercial Bank of China

-- India Bond Yield Curve to steepen more as sovereign bond issue unlikely in FY20
 
-- India's shorter end of Bond Yield Curve looks attractive
 
-- See India repo rate falling to 5% by March

(Via BTVi)

NEWS ALERT | Confusion in consumer mind with regards to EV and BS-VI leading to postponement of demand pick-up: FADA

-- The consumer sentiment and demand continues to be quite weak and purchase postponement continues

-- Transmission of surplus liquidity and interest rate cuts still not seen in retail lending

-- Surplus liquidity in the system after a prolonged shortage of it. Hopeful of aggression in retail lending soon.

July Vehicle Registration Data | 2W sales see de-growth of -5%, PV by -11% and CV at -14% YoY: FADA

-- Positive growth seen on a MoM basis, with overall sales up by 5% 

-- PV inventory levels reduces further and comes closer to FADA’s proposed 21 days inventory

-- CV inventory continues to be at high level

-- Very slight reduction seen in 2W inventory levels and they continue to remain at very high levels and a serious cause of concern for dealers

Alert: FADA is Fedederation of Automobile Dealers Association

Buzzing | Force Motors soars 18%


Majority of economists expect US recession in next 2 years: Survey

A majority of economists expect a US recession in the next two years, but have pushed back the onset amid Federal Reserve actions, according to a survey released Monday. 
 
The National Association for Business Economists found far fewer experts now think the next recession will start this year compared to a survey in February. READ MORE

APL Apollo Tubes slips nearly 3%


Market check | Nifty slips below 11,100


Market check | Sensex pares gains partially


NEWS ALERT | South Indian Bank cuts MCLR by 5 bps across all tenors w.e.f August 20


NEWS ALERT | Banks to give incremental loan to DHFL for wholesale real estate project: sources to BTVi

-- Banks decide to restructure term loan for the retail books of DHFL
 
-- Loans to be given in the range of Rs 10,000 cr-Rs 18,000 cr
 

NEWS ALERT | Considering market conditions, response to IPO exceeded co's expectations: Padmaja Reddy, MD, Spandana Sphoorty to BTVi

-- Micro & macroeconomic conditions behind lukewarm IPO
 
-- Portfolios diversified not only across states but also across districts

Alert:  Spandana Sphoorty's IPO got listed today, earlier in the day, at a discounted price of Rs 824/sh (on the BSE) as against an issue price of Rs 856

DHFL zooms 10%


IDBI rises over 7%


ICICI Securities on Sadbhav Engineering

While SIPL (Sadbhav Infrastructure Project) deal should deleverage Sadbhav Engineering (SEL) and SIPL’s balance sheet, the management has lowered its guidance sharply resulting in earnings downgrades. Secondly, we are unclear in terms of possible synergies from the considered merger between SEL and SIPL. Besides this, the awaited equity swap ratio would influence the price movement of each stock if the merger goes through. Hence, we downgrade the stock to HOLD with a target price of Rs 140/share.

MARKET CHECK | YES Bank slips around 3%


Edelweiss Securities on Essel Propack

Given the disappointing Q1FY20 show, we cut FY20/21 estimates. Due to several headwinds faced in the oral business across geographies, we expect Essel Propack (EPL) to trade close to the lower end of long-term average. We maintain ‘HOLD’ with revised TP of Rs 110.

Marico hits new high, gains 10% thus far in August on strong Q1 results

Shares of Marico rose 2.6 per cent intra-day to hit an all-time-high of Rs 402 on the BSE on Monday, gaining 10 per cent thus far in August, after it reported a strong set of numbers for April-June quarter (Q1FY20). In comparison, the benchmark S&P BSE Sensex has gained 0.46 per cent in the past 11 trading days. READ MORE

Market check | Sensex rises 350 pts


NEWS ALERT | Dr. Reddy's Laboratories announces the launch of Versavo in India: BSE filing


SBI slips 1%


Top gainers on the BSE at this hour

BALRAMCHIN 125.50 +6.45 +5.42
KNRCON 248.25 +14.10 +6.02
 
IDBI 26.80 +1.95 +7.85
 
DHFL 51.05 +5.15 +11.22
 
FORCEMOT 1,283.15 +163.85 +14.64
 

MARKET CHECK | Ajanta Pharma slips 2%


NEWS ALERT | Glenmark gets nod for Remogliflozin Etabonate & Metformin Hydrochloride in India.

-- Metformin is used with a proper diet and exercise program and possibly with other medications to control high blood sugar


NEWS ALERT | Pennar Industries bags order worth Rs 538 cr during the months of June and July 2019 across its business verticals


Maruti seeks GST benefit for hybrid, CNG cars to promote green mobility

The country's largest carmaker Maruti Suzuki India (MSI) is pitching for tax relief for hybrid and CNG cars in addition to electric vehicles in order to promote green mobility in the country.
 
MSI Chairman R C Bhargava said there is a need to promote hybrid and CNG cars as it will take some time for mass acceptance of electric vehicles (EVs) considering the high cost of technology right now. READ MORE
Maruti Suzuki Chairman R C Bhargava

NEWS ALERT | DIPAM, NMDC & NITI Aayog to soon take final call on Nagarnar Plant sale: Govt official via Agencies

-- Centre aims to raise about Rs 15,000 cr

NEWS ALERT | PSBs asked to align lending activities with national priorities: sources to CNBC TV18

-- Exercise focused on ways and means to increase credit flow

-- DFS asks PSBs to hold bottom-up consultative process

-- PSBs asked to generate ideas, review performance, and engage in self-engagement

-- Suggestions to be collated and sent for state, national level discussions

NEWS ALERT | Banks likely to slow down on credit growth: Axis Bank CEO

Amitabh Chaudhry, CEO, Axis Bank

ICICI Securities on Brigade Enterprises

CMP: Rs 271 
 
Target: Rs 330 (22%) 
 
Target Period: 12 months
 
Considering a sharp ramp up in its leasing portfolio and in sales momentum in the residential business, we believe BEL’s current valuation is attractive (1.6x FY20E P/BV). Hence, we maintain our BUY recommendation on the stock with an SoTP-based target price of Rs 330/share.

Nirmal Bang Securities on Equitas Holdings

Target: Rs. 147
 
Upside: 31%
 
Recommendation: BUY
 
With visible ROE (return on equity) expansion to nearly 16-18 per cent levels in the long term (by FY22E) on the back of strong AUM growth, lower opex and stable credit costs, we believe Equitas’ valuations will gravitate towards that of small finance banks (SFBs), banks and NBFCs demonstrating similar growth and profitability. We remain positive on the stock given strong earnings growth of 48 per cent CAGR over FY19-21E. We value (Equitas SFB at 3.0x FY21E Adj. BV) Equitas Holdings at a 45 per cent discount to SFB, at 1.7x FY21E adjusted book value at Rs 147, post factoring the holdco discount.

Godfrey Phillips India surges 53% in four days on strong Q1 results

Shares of Godfrey Phillips India surged 9 per cent to Rs 1,088 apiece in the intra-day trade on Monday, rallying 53 per cent in past four trading days on the BSE after the company reported a more than double consolidated net profit at Rs 119 crore in April-June quarter (Q1FY20) on strong volume growth. The company, which is engaged in cigarettes and tobacco products business, had posted a profit of Rs 57 crore in the year-ago quarter. READ MORE

STOCK ALERT :: HDFC Life hits record high


Spandana Sphoorty trades with huge cuts


NEWS ALERT | No proposal to have AQR of NBFCs currently: RBI governor

Alert: AQR is Asset Quality Review

Bank stocks fall up to 40% since Budget. Is it a good time to buy?

“There are legacy issues with banks, especially the ones in the public sector domain. One cannot paint the entire sector with the same brush. The non-performing loan issue is now getting addressed, which is expected to peak out in the current financial year 2019 – 20 (FY20). This should lessen the amount needed for provisioning and aid overall profitability” says G Chokkalingam, founder and managing director at Equinomics Research. READ MORE

Market check


NEWS ALERT | US FDA tags Sun Pharma's Halol unit at 'No Action Initiated'


Reliance Capital slips 4%


Market check


INEOS Styrolution freezes at 20% upper circuit on voluntary delisting plan

Shares of INEOS Styrolution were frozen in the upper circuit band of 20 per cent at Rs 466 apiece on the BSE on Monday after the promoter proposed voluntary delisting of the equity shares of the company. It has fixed an indicative delisting offer price of Rs 480 per share.
 
The board of directors of the speciality chemicals company is scheduled to meet on August 23, 2019 to consider the voluntary delisting proposal. Shares of the company are listed on the BSE and the National Stock Exchange (NSE). READ MORE

Market check


Spandana Sphoorty sees tepid debut, lists at 4% discount to issue price

The company's Rs 1,200 crore initial public offering (IPO), which was opened for subscription between August 5 and 7, was subscribed 1.05 times. The category reserved for qualified institutional buyers (QIBs) was subscribed 3.10 times while non institutional investors' quota was subscribed 56 per cent. Retail individual investors' category was subscribed 9 per cent. READ MORE

New Listing Alert | Spandana Sphoorty Fin lists at a discounted price of Rs 824/sh

-- Issue price was Rs 856 per share


Explained in 7 charts: Cause and magnitude of automobile slowdown

While the gloom in passenger vehicles started early, commercial vehicles sales, an important indicator of economic activity have now followed (Chart 2). Overall recovery is not in sight if we look at vehicle registration at the user end. But two and three-wheelers seem to be doing better of late, as growth in their registrations in June was better than that in the April-June quarter  READ MORE

Credit rating agencies likely to get access to loan default details

According to a source, Sebi is planning to amend the regulations on CRAs by adding a clause in the agreement between an issuer and a rater to provide an ‘explicit consent’ from the issuer to obtain information related to loans, repayment, delay, etc. from banks or other lending institutions.  READ MORE

Dabur rises 1%


Crisil trades 1.6% lower


NEWS ALERT | Axis Bank cuts lending rates by 5-10 bps


RBL Bank rises 3%


Dr Reddy's Lab gains over 2%


Nifty PSU Bank index slips in red


Market check | Sensex gives up gains


Nifty outlook | Ashish Nanda, Kotak Securities

Previous week was dominated by Reliance industries and helped indices from falling below previous lowest levels.  Almost all Nifty 50 stocks have declared their number first quarterly numbers and they were below estimates.  Domestic developments are missing and global cues are highly uncertain, in such environment we should not biased to any specific view.  Pessimism is increasing on the street along with cash levels, which is precursor to bottoming formation. Even auto companies have started recovering from lower levels on week on week basis.  It may be too early to say but it would be an opportunity to invest in few large companies with a long term view. For the week focus should be on Banks, Auto and Metal companies. Avoid pharmaceuticals and Technology companies for trading.  Nifty would remain in the range of 10,900 and 11,200.  Expect technical price break out above 11,200.

(Ashish Nanda is EVP & Business Head - PCG, Commodities and Currency Business, Kotak securities)

Walchandnagar Industries trades 1% higher


Momentum picks by ICICI Securities


Oracle Financial Services Software top gainer among the IT pack


Sundaram Clayton up 1%


Brigade Enterprises hits 52-week high; up 7%


Market check


Broader Market Check


Westlife Development gains nearly 5%


ICRA trades over 3% higher


Sun Pharma trades 1.5% higher


DHFL adds 2% during morning deals


InterGlobe Aviation trades nearly 3% higher


M&M trades flat with negative bias


Ujjivan Financial Services under pressure


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


Govt speaking to banks about stimulus package for economy: SBI chairman

The government is speaking to banks as it considers a stimulus package to revive India's economy that has hurt credit demand in its slump, said Rajnish Kumar, chairman of State Bank of India (SBI), in Kolkata on Sunday.
 
"Hopefully, with increased government spending, monsoons and festive season we will see credit demand. Last year we saw nearly 14 per cent credit growth at SBI, and this year we expect at least 12-14 per cent credit growth,” he said. READ MORE
Rajnish Kumar, SBI Chairman

Intra-day futures recommendation by ICICI Securities


M&M lays off 1,500 temporary workers, seeks govt stimulus for industry

Indian auto major Mahindra & Mahindra has made a case for a fiscal stimulus package from the government for the automobile sector to tide over an unprecedented slump in sales and arrest job losses.
 
The company's Managing Director Pawan Goenka told reporters here that the auto maker has retrenched about 1,500 temporary workers since April 1 this year, adding that if the slowdown continues it will be forced to lay off more employees. READ MORE

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


Market at Pre-open


Market at Pre-open


Rupee Alert

Rupee opens at Rs 71.17/$ vs Friday's close of Rs 71.15 per US dollar

Centre increases oil and gas bidding round to three times a year

Delays in bidding rounds notwithstanding, the government has increased the expression of interest (EoI) submission cycle for oil and gas acreage to three times a year from two times earlier, the Directorate General of Hydrocarbons (DGH) said.
 
India had in July 2017, allowed companies to carve out blocks of their choice with a view to bring about 2.8 million sq km of unexplored area in the country under exploration. READ MORE

YES Bank's growth secure with balance sheet repair, QIP: Ravneet Gill

YES Bank concluded its qualified institutional placement (QIP) of Rs 1,980 crore last week, which was oversubscribed three times and will take the bank’s common equity tier-1 capital ratio to 8.6 per cent from about 8 per cent a few months ago. “It was a job to be done and it is done,” Ravneet Gill, managing director and CEO, YES Bank said on whether the recently concluded was his most important achievement in his six months term at the bank. READ MORE

Equity mutual fund managers 'buy the dip' amid a huge downturn in market

Domestic money managers lapped up shares of several companies amid a huge downturn in the market last month. Equity mutual funds (MFs) bought shares worth Rs 15,000 crore, even as the benchmark Nifty fell 5.7 per cent in July. The correction was steeper in the broader market with the NSE Midcap 100 and the NSE Smallcap 100 indices declining 10 per cent and 11 per cent, respectively. READ MORE

Unnerved by Reliance Jio offer, leading multiplex companies hit back

Leading multiplex companies have said they will not screen films whose rights have been sold for an earlier or simultaneous release on OTT (over the top) digital platforms.
 
This is a significant development as it could lead them to challenge Reliance Industries chairman Mukesh Ambani, who recently announced that premium users of the commercially launched high-speed Jio Fiber (fibre to the home) would be able to see movies at home on the same day that they are released in the theatres. READ MORE

Stocks to watch: M&M, DHFL, Coffee Day, ICRA, Amtek Auto, Sundaram-Clayton

Here's a look at some of the counters that are likely to trade actively in today's trading session -
 
M&M: Auto major Mahindra & Mahindra has made a case for a fiscal stimulus package from the government for the automobile sector to tide over an unprecedented slump in sales and arrest job losses.
 
The company added it has deferred a portion of its new investments to cope slowdown.
 
DHFL: The consortium of banks led by Union Bank of India, which is working on the feasibility of the resolution plan submitted by cash-strapped housing financier Dewan Housing Finance Corporation (DHFL), is toying with the idea of taking a majority stake in the firm, said a Business Standard report. READ MORE

Credit rating agencies, auditors on ED radar in IL&FS charge sheet

The Enforcement Directorate’s (ED’s) first charge sheet in the Infrastructure Leasing & Financial Services (IL&FS) case has elaborated the role of India’s top credit rating agencies and auditors, indicating irregularities, concealment, and possible collusion with the beleaguered entity’s former management. READ MORE

150,000 bankers to discuss how to make India $5-trillion economy by 2024

More than 150,000 branch managers of public sector banks (PSBs) brainstormed over the weekend on what could be the banking system’s contribution to double the size of the economy to $5 trillion by 2024, with an additional aim of holding an impromptu performance audit of branches. This is the first level of a three-level exercise, done under the behest of the department of financial services of the Ministry of Finance. READ MORE


Bumpy road ahead: Automakers to face a long winter if govt doesn't act

The consensus seems to be that, in the absence of direct or indirect government intervention, it is almost certain that the slowdown, coupled with the new BSVI regulations on emission and safety that are going to kick in over the next six months, sales will remain negative till the next financial year. Analysts expect sales to turn positive only in the second or third quarter of 2021. READ MORE

Market Ahead, August 19: All you need to know before the Opening Bell

A host of factors such as global cues, hopes for government measures to revive economy, foreign fund flows, oil prices and movement of rupee against the US dollar are likely to guide markets this week.
 
According to a report, the government is speaking to banks as it considers a stimulus package to revive economy that has hurt credit demand in its slump, said Rajnish Kumar, chairman of State Bank of India (SBI), in Kolkata on Sunday. LISTEN TO PRE-MARKET PODCAST HERE

Criminal offences in Companies Act to be slashed, govt mulls 65 changes

In a move to relax punishment for fraud under the Companies Act, the corporate affairs ministry is planning to withdraw the criminalisation aspect in 65 sections where the offences are compoundable or not serious in nature, a government official in the know said. “Criminalisation has had no worthwhile outcome. We will look at decriminalising most of the compoundable offences. READ MORE

Investors burnt their fingers in small- and mid-caps, says Motilal Oswal

Developments back home and at the global level have kept the markets volatile over the past few sessions. MOTILAL OSWAL, managing director, Motilal Oswal Financial Services, tells Puneet Wadhwa that he expects the slowdown in the economy to last at least two more quarters. The fast-moving consumer goods (FMCG) sector will lead the recovery, he says. READ FULL INTERVIEW HERE
Motilal Oswal, managing director, Motilal Oswal Financial Services

From Dr Reddy's to Cipla, pharma companies aren't out of the woods: Experts

The BSE Healthcare Index hit an all-time low last week and continues to trade weak due to multiple headwinds. Despite easing competitive intensity in the US and lower price erosion, the sector does not seem to be out of the woods. There are multiple pain points for the sector in the core markets of the US and India which are pegging back the growth prospects. READ MORE

Commodity picks: 19 August, 2019

Cotton
 
Cotton price for 29 mm S6 cotton in Gujarat is at Rs 42,200 per candy and has corrected by close to 10 per cent since its recent high at the end of April 2019. This has happened as the US cotton has corrected by more than 24 per cent during this period. The prices could make a feeble attempt to go up but are unlikely to sustain due to onslaught of record Q4 imports just ahead of a larger new season cotton crop. Expect prices to ease to Rs 41,500 or more per candy in the near term. READ MORE

Top trading ideas by Prabhudas Lilladher: Buy HDFC AMC, Axis Bank

BUY HDFC AMC
 
CMP: Rs 2,262 
 
TARGET: Rs 2,800 
 
STOP LOSS: Rs 2,000
 
The stock has been on a good run for a long time and has maintained the uptrend consistently. The RSI has been on the rise and has significantly maintained the positive bias. We anticipate the stock to rise further with strength and potential and scale fresh new heights of 2800. With favourable factors supporting our view and decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 2800, keeping a stop loss of Rs2 000 READ MORE

Nifty outlook and trading ideas by CapitalVia: Buy Gruh Fin, Bank of Baroda

Nifty View
 
If we take a look at Bond Yield, India’s 10-year government bond rose over 10 basis points (bps) to hit a six-week high on Wednesday, August 14th. The growing uncertainties about the proposed $10-billion overseas bond program and concerns over higher borrowing from the domestic market (if the offshore plan fails), leads to volatility in Nifty and talks of a fiscal stimulus have provoked hesitations of a bond surplus this fiscal, leading to profit-taking and price corrections. Nifty on Friday, August 16th closed at 11,047.80. From Nifty weekly chart we are expecting that Nifty is taking a firm support of Exponential moving average EMA100. In the coming week we may see a marginal gain in the index in the range of previous week’s high that is 11,181.50 and 11,300. READ MORE
Image: iSTOCK

Market outlook and stock picks by Angel Broking: Buy Maruti, Tata Steel

Hope of relief rally remains intact 
 
Although the week gone by was a truncated one, it was not at all short of action. Despite some signs of relief rally from the previous week and with a smart move by Index heavyweight Reliance of 10 per cent, the market started with deep cuts on August 13th, losing more than one and a half percent. In the rest two sessions, in spite of global turmoil, Nifty managed to avoid further slip and amidst a stock-specific bounce back it eventually ended around 11050, registering a with loss of around half a percent against the previous week. READ MORE

Bulk deals on NSE as on Friday

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


Rupee Check

Source: Bloomberg


Oil Check

At 8:09 am, Brent Crude Futures were at $59.24 per barrel.

SGX Nifty

At 8:06 am, SGX Nifty was trading at 11,064.5, up 10 points.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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