MARKET WRAP: Sensex ends 125 pts higher, Nifty at 11,036; PSBs, autos gain

Topics Markets | MARKET WRAP

Benchmark indices ended Wednesday's range-bound session higher, lifted by public sector banks and metal stocks, thus extending their gains to three straight days.

The S&P BSE Sensex added 125 points or 0.34 per cent to settle at 37,271.  YES Bank (up 13 per cent), Tata Motors (up 10%), Maruti Suzuki India (up 4%), Tata Steel (up 4%), and Vedanta (up 3 per cent) were the top gainers in the Sensex pack. About 1,845 shares advanced, 777 shares declined, and 153 shares remained unchanged on the BSE. 

On NSE, the Nifty50 index settled at 11,036, up 33 points or 0.3 per cent.

Majority of the Nifty sectoral indices ended higher. Nifty Realty index was up 4 per cent while Nifty PSU Bank and Nifty Auto indexes were up over 3 per cent each. On the other hand, Nifty IT index dipped 1 per cent.

in the broader market, the S&P BSE MidCap index surged 140 points, or 1.04 per cent, to 13,635, while the S&P BSE SmallCap index settled at 12,892, up 182 points, or 1.43 per cent.

GLOBAL MARKETS

World stocks rose for the sixth straight day on Wednesday and bond prices fell as investors continued to unwind safety bets, encouraged by hopes of a resolution to the Sino-U.S. trade standoff and signs Europe may be preparing to ease budget spending rules.

In Europe, Euro zone stocks were up 0.5 per cent, with investors piling into banks, miners, and auto parts shares for a second day. Germany's trade-sensitive DAX's rose 0.6 per cent, while London's FTSE 100 jumped 0.9 per cent.

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3:38 PM IST The S&P BSE Sensex gained 125 points or 0.34 per cent to settle at 37,271, while NSE's Nifty50 index ended at 11,036, up 33 points or 0.3 per cent.

3:29 PM IST Hong Kong Exchanges and Clearing Ltd. made an unexpected bid for London Stock Exchange Group Plc, which could potentially throw the European exchange’s own transformative deal into jeopardy.   The transaction values one of Europe’s largest exchanges at 29.6 billion pounds ($36.6 billion), according to a HKEX a statement Wednesday. The Asian bourse operator had considered the ‘ambitious and far-reaching’ deal for many months, HKEX Chief Executive Officer Charles Li said.

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2:59 PM IST

2:54 PM IST -- Fin MIn has sent divestment proposal to PMO seeking urgent approval -- Decision on new ETF basket only after cabinet nod for selling below 51% in PSU -- Fin Min seeks cabinet nod for PSUs to be divested this year -- SPVs of PSUs with land and non-core assets to be candidates for divestment

LIVE UPDATES

Contributions to S&P BSE Sensex's gain today


Broader indices outperform


Key indices on BSE


Sensex heatmap


CLOSING BELL

The S&P BSE Sensex gained 125 points or 0.34 per cent to settle at 37,271, while NSE's Nifty50 index ended at 11,036, up 33 points or 0.3 per cent.

ALERT :: Hong Kong Exchange makes surprise $36.6 billion bid for LSE

Hong Kong Exchanges and Clearing Ltd. made an unexpected bid for London Stock Exchange Group Plc, which could potentially throw the European exchange’s own transformative deal into jeopardy.
 
The transaction values one of Europe’s largest exchanges at 29.6 billion pounds ($36.6 billion), according to a HKEX a statement Wednesday. The Asian bourse operator had considered the ‘ambitious and far-reaching’ deal for many months, HKEX Chief Executive Officer Charles Li said.

Wockhardt hits 20% upper circuit


Maruti Suzuki India up 3%


Buzzing stock | Oberoi Realty surges 10%


Realty stocks gain


NEWS ALERT | PSBs unlikely to be part of strategic divestment this year: sources to ET Now

-- Fin MIn has sent divestment proposal to PMO seeking urgent approval

-- Decision on new ETF basket only after cabinet nod for selling below 51% in PSU

-- Fin Min seeks cabinet nod for PSUs to be divested this year

-- SPVs of PSUs with land and non-core assets to be candidates for divestment

BUZZING STOCK:: Balrampur Chini Mills surges over 12%


Rupee fall may not prop up margins of IT cos, attrition, pricing to weigh

The Nifty IT index has outperformed the Nifty 50 in the past one month and is currently near its two-month highs, thanks to a weak rupee, which fell by a sharp 99 paise against the US dollar last Tuesday. A weak rupee typically provides near-term support to margins of information technology (IT) companies. Analysts estimate that margins tend to gain by 20-25 basis point for every 1 per cent depreciation of the rupee against the US dollar. However, this time, it may be too early to think about any likely margin improvement. READ MORE

Tata Motors extends gain, at day's high now


NEWS ALERT | Dr Reddy's launches Fosaprepitant injection in the US market


PSU banks gain


JK Paper surges 17%


HCL Tech cracks 2%


August Sales Data | Tata Motors

-- Global wholesales including Jaguar Land Rover at 72,464 units, down 32% on a yearly basis

-- Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in August 2019 were at 25,366 nos., lower by 45% YoY

-- Global wholesales of all passenger vehicles in August 2019 were at 47,098 nos., lower by 22% YoY

-- Global wholesales for Jaguar Land Rover were 39,615 vehicles. Jaguar wholesales for the month were 10,097 vehicles, while Land Rover wholesales for the month were 29,518 vehicles.

(Via BSE filing)


Global markets check

Stock markets held firm on Wednesday as hopes of easing U.S.-China tensions and diminished risk of a no-deal Brexit prompted buying of out-of-favour value stocks before key central bank meetings.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent to hit a fresh 5-1/2-week high. Japan’s Nikkei average climbed 1 per cent, with the Topix Value index jumping 2.2 per cent and the Topix Growth adding 1.1 per cent. The Shanghai Composite and the blue-chip CSI300 were down 0.3 per cent and 0.7 per cent, respectively, while Hong Kong’s Hang Seng advanced 1.7 per cent.
 
Pan-European Euro Stoxx 50 futures gained 0.2 per cent in late Asian trade, indicating that European cash share markets will open slightly higher on Wednesday.

(Reuters)

NEWS ALERT | Cartica Capital sells 2.28% stake in Cholamandalam Fin on September 6


NEWS ALERT | Generic Engineering Construction & Projects bags order worth Rs 298.88 cr : BSE filing

-- Project for construction of industrial & residential buildings


Heatmap: S&P BSE Sensex


Derivative pick by Anand Rathi Shares and Stock Brokers

TVS Motors

Reco: BUY

CMP: Rs 398.5

SL: Rs 375.5

TP: Rs 445

The stock has negated the lower tops and bottoms on weekly charts. Also after having formed weekly hammer its has been rising
 

BSE500 stocks that hit 52-week high today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
BATA INDIA 1570.45 1572.30 10.70 0.69
DR LAL PATHLABS 1326.00 1345.20 29.25 2.26
HONEYWELL AUTO 26850.05 29100.00 -627.15 -2.28
ICICI PRU LIFE 423.95 447.00 -18.15 -4.11
MULTI COMM. EXC. 974.00 1015.00 -5.60 -0.57
» More on 52 Week High

How to know if Indian economy is reviving? Keep an eye on this stock

For equity investors seeking early signs of any revival among India’s consumers, here is a stock to watch: the distributor of Domino’s Pizza and Dunkin’ Donuts in the country.
 
Jubilant Foodworks Ltd., the nation’s biggest fast food stock and a bellwether for discretionary consumption, has seen its shares shed almost a quarter of their value from a record high about a year ago as Indians cut back on spending. But some analysts are seeing light at the end of the tunnel. READ MORE

NEWS ALERT | Govt may make announcements for Realty sector in the next few days: Anurag Thakur, MoS Finance


NEWS ALERT | Cyient signs MoU with QinetiQ's Target Systems to offer avionics products in India: BSE Filing

-- Avionics products to be offered for its unmanned target systems

Alert: QTS is UK-based defense technology firm




IOC, Haldia Petro projects worth Rs 2 trillion may trip on land hurdles

After clearing high-value investment projects worth Rs 2.04 trillion, the Odisha government is likely to stumble on land acquisition hurdles especially for mega projects proposed by Indian Oil Corporation (IOC) and Haldia Petrochemicals Ltd (HPL).
 
Last month, the High Level Clearance Authority (HLCA), the highest body to approve investments in Odisha, inter alia gave the go-ahead to expansion projects proposed by IOC and a refinery cum petrochemicals complex by HPL. Between them, IOC and HPL have pledged investments valued at around Rs 1.8 trillion. READ MORE

Chemical prices decline by 25% in 2 months on weak oil, US-China trade war

Chemical prices have declined by up to 25 per cent in the past two months due to a sharp fall in the prices of raw materials, including crude oil, higher refined production when overall demand was impacted due to general slowdown globally amid economic uncertainty, and the ongoing trade war between the world's two largest economies -- the United States and China. READ MORE

DFM Foods tanks 9% on Al Global's proposal to buy 68% promoters' stake

AI Global also made an open offer to buy up to 26 per cent from the company's public shareholders at a price of Rs 249.50 per share. This was 7.66 per cent lower than the company's last closing price of Rs 270.20 on the BSE. READ MORE


Nifty sectoral indices at this hour


MARKET CHECK | Sensex holds gains


Nifty may slip below 10k by March: Dharmesh Kant, IndiaNivesh Securities

Q1FY20 earnings were a big disappointment, rather a confirmation of slowdown. Management guidance across the board indicated further pain ahead. Global economic uncertainty and slowdown added to the woes. We expect Nifty to end the year around 11,000, plus-minus 200 points. Having said that, the first half of 2020 looks real tough and I won't be surprised if Nifty cracks below 10,000 by March 2020. READ FULL INTERVIEW HERE
Dharmesh Kant, Head of Retail Research, IndiaNivesh Securities

Premier Explosives surges 10%


NEWS ALERT | S&P revises ratings on Syndicate Bank to 'BB+/Positive' from 'BB+/stable' : CNBC TV18


NEWS ALERT | S&P revises Indian Bank's rating from 'stable' to 'negative': CNBC TV18


Year-long debt crisis hits plans for bigger Indian corporate bond market

India’s plans to expand its corporate bond market are running up against a year-long credit crisis, in another obstacle for Prime Minister Narendra Modi’s efforts to jumpstart a sputtering economy.
 
Sales of rupee bonds rated below AAA have halved so far this year to Rs 69,900 crore ($9.7 billion) as a wave of debt defaults and a funding crunch in the shadow banking sector make investors reluctant to buy riskier notes. Banks, who are major players in the primary market, are now mostly interested in providing backing for sales of quasi-sovereign and top-rated issuers, Bloomberg-compiled data show. READ MORE

Power Mech Projects surges over 8%


NEWS ALERT| BHEL commissions 1,320 MW supercritical thermal project in Odisha: BSE filing


YES Bank extends gain


NEWS ALERT | JSW Steel August crude steel production down 13% at 1.25 mt vs 1.44 mt (YoY): BSE filing

-- Aug production lower on planned shutdown at Vijaynagar, monsoon impact at Dolvi


NEWS ALERT | China releases tariff exemption list for products from the US: Reuters

-- China's tariff exemption list for products takes effect on Sept 17

Year-long debt crisis hits plans for bigger Indian corporate bond market

India’s plans to expand its corporate bond market are running up against a year-long credit crisis, in another obstacle for Prime Minister Narendra Modi’s efforts to jumpstart a sputtering economy. Sales of rupee bonds rated below AAA have halved so far this year to Rs 69,900 crore ($9.7 billion) as a wave of debt defaults and a funding crunch in the shadow banking sector make investors reluctant to buy riskier notes. READ MORE

DLF gains 5%


BUZZING STOCK:: Adani Power climbs 3%


DFM Foods slips over 4%

-- AI Global Investments (Cyprus) PCC makes an open offer to acquire 26 percent stake at Rs 249.50 per share


Gravita India gains over 4%

-- CARE Ratings assigns CARE BBB+ rating of long term bank facilities and CAREA2 to the short term bank facilities


Pitti Engineering gains 4.5%

-- CARE reaffirmed CARE BBB+, Positive rating to the long term bank facilities and CARE A2 on the short term bank facilities


Sensex up over 100 pts


Contribution to Sensex


IT stocks struggle


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
YES BANK 67.45 4.35 6.89 1740782
ICICI LOMBARD 1125.80 -51.65 -4.39 809943
VODAFONE IDEA 5.38 0.07 1.32 560346
SUZLON ENERGY 2.87 0.06 2.14 471046
HEIDELBERG CEM. 193.00 1.95 1.02 349824
» More on Most Active Volume

Jindal Steel zooms 6%


Vedanta up 2%


Nifty Metal index is trading over 1% higher


NEWS ALERT | L&T Oman bags order in the range of Rs 1,000-2,500 cr: BSE filing


Glenmark Pharma gains over1%


Meghmani Organics trades 3% higher


Tata Motors rises over 3%


Strides Pharma trades in the green


Indiabulls Real Estate gains over 1%


Hindustan Petroleum Corp trades 0.7% lower


RBL Bank trades nearly 3% higher


Wipro trades lower


Ashok Leyland dips 3%


Reliance Nippon Life Asset Mgt slips 4%


YES Bank gains 5% in morning trade on reports Rana Kapoor looks to sell stake to PayTm


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


NEWS ALERT | Strides Pharma Science acquires majority stake in Fairmed Healthcare AG: BSE Filing


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


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens lower at 71.84/$ vs Monday's close of 71.70 against the US dollar

Analysts positive on Voltas despite slowdown, see growth in projects, ACs

Despite the downward bias and volatility in broader markets, Voltas has gained more than 12 per cent from its end-July lows. Analysts say, the company remains well placed for growth with the worst behind, and this is one reason driving up sentiment for Voltas.
 
For one, the company’s Electro Mechanical Projects and Services (EMPS) business, which has continued reporting regular improvement in profitability, has a strong order book. READ MORE

NEWS ALERT | Essel Group completes 1st tranche of stake sale of ZEE Entertainment Enterprises to Invesco Oppenheimer: BSE filing

-- The 1st tranche of the transaction comprising sa le of 8.7% stake in ZEEL has been successfully concluded

-- The Group is confident of completing the balance sa le of 2.3% stake over the next few days, the filing said.

-- The Group is also working actively on further divestments including its non-media assets and remains confident to complete the same

Alert: The Group had entered into an agreement to sell up to 11% promoter stake in ZEEL to the Fund.


Anil Ambani's Reliance Capital inches closer to exiting mutual fund biz

Anil Ambani-led Reliance Capital will sell up to 6.3 per cent stake in Reliance Nippon Life Asset Management —commonly referred to as Reliance Mutual Fund —through the offer for sale (OFS) route, on Wednesday.
 
The share sale is part of Reliance Capital’s deleveraging programme, which involves exiting the asset management operations, among other businesses. At present, Reliance Capital holds 32.12 per cent stake in Reliance MF. READ MORE

Cash-strapped IL&FS receives Rs 13,000 crore bids for road assets

The IL&FS Group has received binding bids worth Rs 13,000 crore for its domestic road portfolio, the group said on Tuesday. With a combined debt of Rs 17,700 crore, the bids, if accepted, will need banks to take a haircut.
 
“IL&FS has received binding financial offers aggregating close to Rs 13,000 crore for 10 domestic road assets. These bids were opened on September 9, 2019,” IL&FS said in a statement. READ MORE

Govt's big plan to push EVs: Rs 40,000-crore subsidies in the works

The government is considering more sops and benefits to push electric mobility in India — this time on the supply side. The plan is to spend Rs 40,000 crore on subsidies over the next 10 years, aimed at companies that will set up manufacturing units for batteries, parts of electric vehicles (EVs), or components supporting infrastructure like charging stations, Business Standard has learnt. READ MORE

YES Bank's co-founder Rana Kapoor likely to sell his stake to Paytm

Rana Kapoor, co-founder of YES Bank, is said to be in talks with One97 Communications, owner of Paytm, to sell his stake in the private sector lender. Kapoor and his associate entities owned 10.6 per cent in the bank at the end of June 2019. Around 7.34 per cent of the Kapoor family stake has been pledged with Reliance Nippon Asset Management Company (RNAMC). READ MORE

Corporate bond issuances on the upswing, reach Rs 5.45 trillion till August

Contrary to expectations, the corporate bond market is witnessing a spurt of issuances, and in the first eight months of this calendar year, the issuances have been the highest ever. While liquidity played a role, banks’ reluctance to lend due to risk aversion and tightened group borrower exposure limits are pushing firms to the corporate bond market space, say experts. READ MORE

Govt will respond to automobile industry's demand, says FM Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said the government would respond to the demands of the automobile industry, which is facing the worst slump in two decades. Sitharaman’s assurance to the auto industry came ahead of the GST Council meeting, slated for September 20.
 
The FM, while speaking to the media here on 100 days of the Modi government 2.0, said, “We are conscious that we need to respond.” When asked about a possible rate cut on cars, Sitharaman said that call would be taken by the GST Council at its meeting in Goa next week. She, however, added that some of the industry suggestions had already been considered. READ MORE HERE

Anand Rathi Shares and Stock Brokers on Dilip Buildcon

Rating: BUY
 
Target Price: Rs 586
 
Share Price: Rs 385

--  To monetise five of its twelve newer hybrid annuity projects, Dilip Buildcon has executed an agreement with Cube Highways. This is in sync with its strategy to focus on its strength as an EPC contractor rather than as an asset holder.

-- At the CMP price, the stock (excl. investments) trades at P/Es of 7.1x FY20e and 6.6x FY21e. We currently have a Buy rating on it, with a TP of Rs 586. Risk: Slower-than-expected pace of execution.

Motilal Oswal Financial Services on Lemon Tree

Recommendation: BUY

CMP: Rs 53

TP: Rs 75

Potential Upside: 41% 

While we maintain our estimates, over FY19-21E, we expect revenue to grow 45% to INR11.6b and EBITDA CAGR at 71% to INR4.9b. The growth should mainly be driven by the recently commenced/upcoming hotels in high demand and high ARR markets of Pune, Mumbai, Kolkata and Udaipur. Additionally, management remains confident of achieving EBITDA of INR600m in FY21 from its recent acquisition of Keys Hotels, for which, it has laid down a plan of action. We value the stock at 18x FY21 EV/EBITDA and arrive at a TP of INR75. Maintain Buy.

Motilal Oswal Financial Services on Trent

Recommendation: BUY

CMP: Rs 461

TP: Rs 515

Potential Upside: 12%

Given consistent SSSG and store throughput led by planned acceleration in store addition, TRENT is likely to deliver stable growth hereon. It has a sticky business with a strong private label share offering exclusivity and also enjoys a loyal customer base. This will likely allow it to garner premium valuations. We value Westside at 27x EV/EBITDA, Zara at 27x EV/EBITDA and Star at 1x EV/sales to arrive at a target price of INR515. Maintain Buy.

Nifty outlook and three trading ideas by Jay Anand Thakkar, Anand Rathi

CHOLA-FINANCE: BUY
 
TARGET PRICE: Rs 301
 
STOP LOSS: Rs 263
 
The stock has provided a breakout from the symmetrical triangular pattern as well as from the downtrend line resistance. The momentum indicator MACD has also provided a clear buy crossover; hence, we recommend buying this stock. READ MORE


Nifty Outlook and top trading ideas by CapitalVia: Buy SRF, Adani Ports

Nifty View:
 
Markets this week started on a positive note and managed to close above 11,000 level after five trading sessions with a close at 11,003.05, gaining 0.52% on firm global cues. Niftybank showed more strength with gains of 0.94 percent at 27,504.70. As per option data, huge put writing on lower strikes ranging from 10,900 to 11,000 will act as support for this truncated weekly expiry. We can witness resistance on higher end at 11,100 and 11,200 as highest OI stands on these strikes. We should keep a positive bias on the Nifty and any dip will be an opportunity for the traders keeping 10,900 as a base. READ MORE

NEWS ALERT | Indiabulls Real Estate announces divestment of commercial assets for an equity value of Rs 4,420 cr: BSE Filing

-- These commercial assets are at Lower Parel & Worli, Mumbai; Udyog Vihar, Gurugram

-- Divestment to achieve zero net debt in the current financial year

-- To divests direct/indirect stake in existing JV cos with Blackstone

Bulk deals on BSE as on Tuesday

Bulk deals on NSE as on Monday

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


Rupee Check

Source: Bloomberg


Oil Check

-- Oil prices rose on Wednesday after an industry report showed that US crude stockpiles fell last week by more than twice the amount that analysts had forecast.

-- At 7:44 am, Brent Crude Futures were at $62.63 per barrel

SGX Nifty

At 7:40 am, SGX Nifty was trading 46 points higher at 11,017 level.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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