MARKET WRAP: Sensex gains 162 pts, Nifty ends at 10,845; bank stocks rally

Topics Markets | MARKET WRAP

Buying in select blue-chip counters such as HDFC twins, ICICI Bank, State Bank of India (SBI) and Infosys helped benchmark indices to settle in the positive territory on Wednesday. The broader market sentiment, however, remained subdued amid disappointing macro data, continuous decline in auto sales and weak global cues.

The S&P BSE Sensex gained 162 points or 0.44 per cent to settle at 36,725, with Bharti Airtel (up 3 per cent) being the top gainer and Maruti (down 4 per cent) the biggest loser. During the session, the 30-share index of BSE hit a high and low of 36,776.31 and 36,409.54, respectively. 

On NSE, the benchmark Nifty50 index closed at 10,845, up 47 points or 0.43 per cent. Out of 50 constituents, 30 advanced while 20 declined. 

Market breadth was in favour of bulls as out of 2,557 scrips traded on BSE, 1,203 advanced and 1,188 declined while 166 remained unchanged.

India VIX, the volatility gauge, slipped around 5 per cent to 17.22-mark.

In the broader market, the S&P BSE MidCap index added 18 points, or 0.14 per cent, to end at 13,264 levels, while the S&P BSE SmallCap index closed at 12,406, up 36 points or 0.29 per cent. 

Sectorally, auto stocks declined the most, followed by media and realty counters. The Nifty Auto index fell around 2 per cent to 6,782 levels. On the flip side, metal stocks gained the most. 

Among individual stocks, Sun Pharma ended over 3 per cent down at Rs 426.40 apiece on the BSE after reports suggested that Securities and Exchange Board of India (Sebi) has ordered a forensic audit against the company to look into allegations of financial irregularities and lapses in corporate governance standards.

Maruti ended 4 per cent lower after the company said it will shut down operations for two days at its Haryana plants. READ MORE

GLOBAL CUES

Stocks followed a firmer Chinese lead on Wednesday after a report showed growth in the country’s service sector accelerating despite broader economic headwinds, while the pound halted its decline on hopes a no-deal Brexit may yet be averted. The Shanghai Composite Index added 0.3 per cent while the blue-chip CSI300 index gained 0.25 per cent. MSCI’s index of Asia-Pacific shares outside Japan snapped two days of losses and gained 0.6 per cent. South Korea’s KOSPI advanced 0.4 per cent and Japan’s Nikkei added 0.2 per cent.

(With inputs from Reuters)


3:49 PM IST

3:48 PM IST (Percentage change; Image source: NSE)

3:46 PM IST

3:40 PM IST The S&P BSE Sensex rallied 162 points or 0.44 per cent to settle at 36,724 while NSE's Nifty50 index ended at 10,845, up 47 points or 0.43 per cent. 

3:24 PM IST

3:14 PM IST

3:03 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%) ALLCARGO LOGIST. 88.90 87.35 -0.20 -0.22 AMBUJA CEM. 190.35 188.50 -2.90 -1.50 BALKRISHNA INDS 714.80 682.65 -15.15 -2.08 BHARAT FORGE 381.00 378.00 -0.95 -0.25 BLUE DART EXP. 2170.00 2158.40 -62.70 -2.81 » More on 52 Week Low

3:02 PM IST

3:01 PM IST

2:57 PM IST

2:51 PM IST

2:50 PM IST Easing worries over political risk in Britain and Italy helped stocks rise on Wednesday with the pound bouncing from three-year lows after a parliamentary vote raised the prospect of another delay to Brexit. Global stocks rose 0.4 per cent, as Europe rallied 1.1 per cent and after a positive session in Asia following a report showing that growth in China’s service sector accelerated despite broader economic headwinds. UK developments lifted the pound 0.56 per cent to $1.2155 after sliding on Tuesday to its lowest since October 2016.

LIVE UPDATES

Sensex heat map


Sector-wise performance

(Percentage change; Image source: NSE)



Nifty snapshot


CLOSING BELL

The S&P BSE Sensex rallied 162 points or 0.44 per cent to settle at 36,724 while NSE's Nifty50 index ended at 10,845, up 47 points or 0.43 per cent. 

JSW Steel gains nearly 2.50%


MARKET CHECK | Top gainers on the BSE at this hour


Stocks that hit 52-week low on BSE

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ALLCARGO LOGIST. 88.90 87.35 -0.20 -0.22
AMBUJA CEM. 190.35 188.50 -2.90 -1.50
BALKRISHNA INDS 714.80 682.65 -15.15 -2.08
BHARAT FORGE 381.00 378.00 -0.95 -0.25
BLUE DART EXP. 2170.00 2158.40 -62.70 -2.81
» More on 52 Week Low

Gainers and losers on S&P BSE Sensex


Maruti Suzuki India down over 3%


Buzzing | IFB Agro Industries soars 13%


Vascon Engg surges on receipt of order worth Rs 465 cr


Global markets check

Easing worries over political risk in Britain and Italy helped stocks rise on Wednesday with the pound bouncing from three-year lows after a parliamentary vote raised the prospect of another delay to Brexit.

Global stocks rose 0.4 per cent, as Europe rallied 1.1 per cent and after a positive session in Asia following a report showing that growth in China’s service sector accelerated despite broader economic headwinds. UK developments lifted the pound 0.56 per cent to $1.2155 after sliding on Tuesday to its lowest since October 2016.

Bharat Electronics Limited up 5%


NEWS ALERT | Govt discussed pace of execution of infra projects at the meeting: IRCON to CNBC TV18

-- Financing, land issues discussed at the meeting

-- Discussed contract clauses that need to be more friendly

-- Infra companies should look at how they are quoting their businesses

-- Govt positive on resolving issues

Alert: Fin Min held meeting with representatives from infrastructure and construction sectors today

NEWS ALERT | Govt invites EoI for investment in BEML's subsidiary Vignayan Ind: CNBC TV18


NEWS ALERT | PMO asks Finance, DEA, Dipam, Oil secretaries on possible off-market transactions w.r.t divestment: sources to ET Now

-- PMO also re-evaluating PSUs' dividend policy 

-- Cash rich PSUs, not investing, may have to pay higher dividend

NEWS ALERT | PMO receives feedback to not launch ETFs as they crowd out markets: sources to ET Now

-- PMO, Fin Min to finalise roadmap on strategic divestment soon

-- PMO studying possibility of monetising land parcels of Air India, Railways
 

NEWS ALERT | Held detailed discussion with Infra sector representatives: Govt official to CNBC TV18

-- Hopeful that next set of announcements will be for homebuyers

-- Wanted to understand the issues first, before moving ahead with solutions

NEWS ALERT | NCLAT to hear Jet Airways insolvency case on Sept 20: ET Now

Commodity Alert | Silver rates hit Rs 50,000 on MCX


Rupee check


NEWS ALERT | Union Finance Minister Nirmala Sitharaman holding consultation with representatives of infra & construction sectors today: CNBC TV18


BUZZING STOCK:: HDFC Bank


Market check | Sharp surge in Sensex


BUzzing | Escorts falls over 7%


Trade war damage piles weight onto consumers, fans global recession fears

There's a lot of weight on the shoulders of shoppers around the world, and the strain is starting to show.
 
As threats to demand ranging from US-China trade tensions to Brexit hit business confidence and investment, consumers are proving the main drivers of global growth. JPMorgan Chase & Co reckons global retail sales volumes charged ahead at a rate of 4.8% in the last quarter, buoyed by still-tight labour markets. READ MORE

Nifty sectoral indices at this hour


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
YES BANK 57.70 -1.10 -1.87 5323191
VODAFONE IDEA 4.92 -0.20 -3.91 4653813
TATA MOTORS 106.40 -6.25 -5.55 2851571
RELIANCE POWER 3.48 -0.04 -1.14 2259885
ASHOK LEYLAND 61.40 -3.95 -6.04 1952460
» More on Most Active Volume

NEWS ALERT :: Maruti Suzuki

Maruti Suzuki announces that the co will shutdown passenger vehicle manufacturing operations at their Gurugram and Manesar plants, in Haryana, on 7th & 9th September: Reports

(Image source: NSE)


NEWS ALERT | Lupin announces partnership with Boehringer Ingelheim


NEWS ALERT | Maruti announces 2-day shutdown at Gurugram and Manesar plants: BSE filing



Asian Paints down over 2%


NEWS ALERT | Lowered FY20 GDP growth rate to 5.9% from 6.7%: UBS to CNBC TV18

-- Believe the economy has troughed in June quarter; expect recovery in the H2FY20

-- Expect a gradual U-shaped recovery

-- Lowering borrowing costs can't revive growth 

NEWS ALERT | Expect 6.5% GDP growth in FY21: UBS

-- Rupee seen at Rs 74/$ for FY20

-- Currency at Rs 72/$ in FY21

Sugar stocks rally

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
BAJAJ HINDUSTHAN 6.24 6.45 5.65 0.82 15.13
SH.RENUKA SUGAR 7.45 7.76 7.10 0.41 5.82
RANA SUGARS 2.33 2.45 2.33 0.04 1.75
BALRAMPUR CHINI 132.85 133.50 131.00 0.70 0.53
EID PARRY 148.05 153.30 147.75 -3.50 -2.31
TRIVEN.ENGG.IND. 52.90 54.50 52.50 0.25 0.47
DHARANI SUGARS 11.74 11.79 11.25 0.95 8.80
SIMBHAOLI SUGAR 7.78 7.78 6.90 1.29 19.88
DHAMPUR SUGAR 146.60 148.90 145.70 0.70 0.48
DWARIKESH SUGAR 22.20 22.90 21.85 0.60 2.78

Glenmark Pharma slips 3% in trade


NEWS ALERT | Got email from Sebi seeking comments on letter sent by Rakesh Gangwal's counsel: IndiGo

-- Co wll provide response to Sebi

NEWS ALERT | Hong Kong leader Carrie Lam to formally withdraw Extradition Bill,: Agencies


Market check | Sensex recovers 250 points from day's low


Bharat Electronics gains 4%


NEWS ALERT | Coffee Day lender invokes pledge on 4.4 lakh shares from August 16-19: CNBC TV18


Central Bank, Union Bank up 2% in a weak market; Canara bank hits 52-wk low

After a sharp slide in the bank stocks, especially the public sector banks, on Tuesday, Nifty PSU Bank index was trading over 1 per cent higher on the NSE on Wednesday. Shares of Union Bank of India, State Bank of India, Central Bank of India, Bank of Baroda, Syndicate Bank, and Allahabad Bank gained 1 to 3 per cent in the intra-day trade. READ MORE

Ashok Leyland cracks 6% as truck sales plunge in August

Shares of Ashok Leyland slumped over 6 per cent to Rs 61.50 intra-day on the BSE on Wednesday after the company reported a 70 per cent drop in medium- and heavy-duty commercial vehicles (M&HCV) truck sales in the domestic market during August. The company sold 3,336 units of M&HCV trucks in August as compared to 11,135 units, a year ago. Total sales of M&HCVs, including buses, dropped by 63 per cent to 4,585 units from 12,420 units in the previous year. READ MORE

Edelweiss Securities on Coal India

We expect an uptick in production/offtake Q3 onwards as weather-related issues subside, rake availability improves, and production normalises at Mahanadi Coalfields (MCL) and South Eastern Coalfields (SECL). Hence, we do not believe our FY20E volume growth of 4.6 per cent is at risk, but note that CIL’s target of 8.5 per cent is daunting. That said, a healthy dividend yield and free cash flow are positives. Maintain ‘BUY’ with a target price of Rs 235 (8.6x FY21E EPS).

Edelweiss Securities on V-Mart

V-Mart’s strategy of increasing clusters coupled with healthy store additions is likely to drive growth. Key risks to our call are rise in competitive intensity and prolonged slowdown. We retain 25x EV/EBITDA (12-months’ forward; ex-Ind AS 116) to arrive at the target price (TP) of Rs 2,366. Maintain ‘BUY/SP’. At CMP, the stock is trading at 14.1x FY21E EV/EBITDA (19.1x ex-Ind AS 116 FY21E EV/EBITDA). 

Nifty Auto index is trading 1.8 per cent lower


ALERT :: IHS Markit India Services PMI

The IHS Markit India Services Business Activity Index declined from 53.8 in July to 52.4 in August, pointing to a slower rate of increase in output. The upturn was modest and below its long-run average. Companies that signalled growth commented on favourable government policies, improved technology and new business gains.
 
Mirroring the trend for output, new business inflows rose at a softer pace in August. Growth was, however, sustained in four of the five monitored sub-sectors, the sole exception being Real Estate & Business Services.


Tata Motors cracks 4%


Sun Pharma slides 4% on report of Sebi ordering forensic audit

Sun Pharmaceutical Industries dipped 5 per cent to Rs 416.85 apiece in Wednesday's trade on the BSE after reports suggested that Securities and Exchange Board of India (Sebi) has ordered a forensic audit against the company to look into allegations of financial irregularities and lapses in corporate governance standards. READ MORE

Confidence crisis at home forcing NBFCs to cough up more for funds overseas

India's shadow banks are getting increasingly squeezed by a crisis of confidence at home, forcing them to cough up more for funds overseas. And that's just for the lucky ones.
 
The non-bank financing companies have struggled to raise as much abroad this year, as defaults in India's credit market spread after a shock failure by major shadow lender IL&FS Group last year. They've signed $1.5 billion of foreign-currency loans so far in 2019, down from $2 billion in the same period last year, according to data compiled by Bloomberg that excludes state-run lenders. READ MORE

Sun Pharma Advanced Research Co dips 3%


Bond bulls torn between greed & fear on chances of stimulus after GDP shock

As bond traders around the world rejoice in this year's dizzying debt rally, the mood is more tempered in India.
 
Yields have barely budged despite the government's recent measures to lift Asia's third-biggest economy. Even prediction of deeper interest-rate cuts by Goldman Sachs Group Inc after Friday's data showed growth hitting a six-year low didn't push up bond prices a whole lot Tuesday. READ MORE

Sunteck Realty slips 3%


Future Enterprises up 3%


Divis Labs trades in the red


MCX trades 2.5% lower


Tata Communications rises 2.3%


Rupee opens 21 paise higher against US dollar, slips later to 72.26

The rupee on Wednesday opened 21 paise higher at 72.18 against the US dollar on Wednesday. However, minutes later the currency slipped to 72.26 level.
 
The domestic unit on Tuesday tumbled 99 paise to settle at 72.39. That marked its worst single-day fall since August 5 and the lowest closing level since November 13, 2018. The depreciation in rupee's value came on the back of heavy sell-off in the domestic equity market and a weak macro environment. READ MORE

Bombay Burmah Trading Corp trades higher


DLF slips 3.2%


LIC Housing Fin dips nearly 1%


Ambuja Cement falls 2%


Ashok Leyland dips 3%


Market check | Sensex slides


Balkrishna Industries hit 52-week low; slides 6%


Reliance Industries trades 1% lower


Nifty FMCG index trades higher


Market check


Broader Market Check


Praj Industries trades over 1% higher


IndusInd Bank sheds 2%


Axis Bank trades flat with negative bias


Britannia Industries gains 1.15%


Sun Pharma slips 5%

-- As per news reports, SEBI has ordered a forensic audit against the drugmaker to look into allegations of financial irregularities and lapses in corporate governance standards.


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 | India's August gold imports hit three-year low as prices jump to record: govt sources to Reuters

-- India’s gold imports in August plunged 73% from a year ago to the lowest level in three years

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


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens higher at 72.18/$ vs Tuesday's close of 72.40 against the US dollar

Auto dealers unsure of a revival in consumer sentiment in festive season

Despite the government announcing a number of sops, auto dealers are unsure of a revival in consumer sentiment in the upcoming festive season. “On the ground, I can’t say right now if I have seen much change from what we last reported. Enquiries are still there, but postponement continues as of now,” said Federation of Automobile Dealers Associations (FADA) President Ashish Harsharaj Kale. READ MORE

Domestic drug portfolio a key driver of Ajanta Pharma's growth prospects

Shares of Ajanta Pharma have rebounded well gaining close to 16 per cent since the start of August. The rebound is led by growth in the company’s domestic drugs portfolio, thanks to its continuous focus on specialty segments, improving market position and enhanced field-force productivity.
 
The company’s domestic sales, which contributed a third to overall revenues, had grown 9 per cent during the June quarter. READ MORE

Stocks in focus

MCX: The company's managing director and chief executive officer (CEO) PS Reddy has clarified that whistleblower allegations about MCX are false and baseless.
 
Tata Communications: Neeco Global ICT Services, a leading global provider of complex ICT services, has entered into an arrangement with Tata Communications, to take to market and deliver Internet of Things (IoT) services for enterprises in Europe. READ MORE

From Hero MotoCorp to Royal Enfield, two-wheeler sales continue to skid

Two-wheeler sales in India, the world's largest market for such vehicles, extended the declining streak of the previous months as manufacturers pared dispatches to dealers in a bid to control inventory on the back of poor retail sales. Largest two-wheeler manufacturer Hero Moto Corp saw a decline of more than 20 per cent. The company had called for goods and services (GST) cut on two-wheelers without which it said it was tough to revive demand. READ MORE

GST Council may cut tax on hybrid vehicles as auto sector battles slowdown

Amid the auto industry’s clamour for a cut in the goods and services tax (GST) rate, the GST Council may give a breather to the hybrid vehicles segment in its upcoming meeting. The government is examining a rate cut for such vehicles by doing away with the cess, which will bring down the tax incidence from 43 per cent to 28 per cent. READ MORE

Mega merger of public sector banks is a good move, but ill-timed: Analysts

The merger of public sector banks (PSBs) may be the much-needed long-term positive for the sector. However, their stock prices didn’t echo these sentiments when trade opened after an extended weekend.
 
Stock prices of anchor banks, or those absorbing the smaller franchisees such as Punjab National Bank (PNB), Canara Bank, Union Bank of India, and Indian Bank, fell over 8–12 per cent. READ MORE

Anil Ambani's Reliance Naval risks insolvency as banks say no to debt plan

The shipyard controlled by Anil Ambani (pictured) is facing the prospect of bankruptcy after failing to get creditors’ approval for restructuring Rs 70 billion ($970 million) of debt, people familiar with the matter said.
 
The bankruptcy tribunal will consider putting Reliance Naval & Engineering in bankruptcy on Wednesday as no new repayment plan was submitted after lenders, led by IDBI Bank, rejected an earlier offer in July, sources said, asking not to be named as the information is not public. The court can also defer the decision on bankruptcy. READ MORE

India Inc's investment project announcements fall to Rs 11.3 trillion

The value of new investment projects announced by Indian companies fell to Rs 11.30 trillion in 2018-19 compared to Rs 21.04 trillion in 2014-15, according to the data collated by the Centre for Monitoring Indian Economy (CMIE).
 
In the coming months, the pace of investments would depend on how soon consumption demand picks up and private sector investment ramps up investment in infrastructure.  READ MORE

Truck sales crash 60%; Ashok Leyland sees decline of 70% in August

Sales of medium- and heavy-duty commercial vehicles (M&HCVs), excluding buses, considered a barometer of economic activity, more than halved in August, as transporters — struggling with excess capacity owing to a slowing economy and consumption slowdown — deferred purchases, the monthly sales data released by truck makers shows.
 
India’s economy grew by 5 per cent in the June quarter, the slowest in over six years. The manufacturing sector fared worse, growing at an abysmal 0.6 per cent. READ MORE

Foreign exchange dealers under lens for large overseas remittances

Foreign exchange dealers have come under the scanner of central probe agencies for allegedly misusing the facility of remitting money abroad including the liberalised remittances scheme (LRS) of the Reserve Bank of India (RBI).
 
The Enforcement Directorate (ED) and the Directorate of Revenue Intelligence (DRI) have detected a significant increase in the outflow of Indian money, specifically into four countries — Thailand, Dubai, Singapore and Hong Kong, sources in the know said. READ MORE

Turbulent times for stock markets: Here is a list of 20 stocks that declined over 2%

Reacting to weak GDP numbers, the Sensex and Nifty dropped over 2 per cent on Tuesday. A fall of more than 2 per cent in the benchmark indices isn’t very common.
 
This is only the second time that the Sensex has declined 2 per cent or more this year. Global indices, particularly those in the US and China, have seen more volatility this year amid a flare up in trade tensions. Indian markets are relatively insulated by the trade situation. However, weakening domestic growth has weighed on investor sentiment. READ MORE

India Nivesh on Sun Pharma

Outlook: Bullish

Recommendation: The stock has confirmed a breakout on the daily chart which resembles a bullish cup and handle pattern. Along with the breakout, stock has managed to close above its 200 DSMA. Also, the daily RSI has confirmed breakout above 60 mark which indicate upside. Traders can buy the stock in the range of 439 – 430 with a stop of 420 for the target of 465. 
 
 

Motilal Oswal Financial Services on Bajaj Finance

Outlook: Neutral

CMP: Rs 3,260

TP: Rs 3,550

Upside: 9%  

While BAF continues its robust growth trajectory, it has also enhanced its capabilities on two fronts –fee income and the deposit franchise, over the past two years. With a scale back in certain products, we expect AUM growth to slow down to 30% YoY in FY20 (41% in FY19). We keep our estimates unchanged – we have not factored in the possibility of a capital raise in our numbers. Maintain Neutral with a TP of INR3,550 (7x FY21E BVPS).

Today's picks: From TCS to ONGC, hot stocks to watch on Wednesday

Nifty
 
Current: 10,798 (10,814)
 
Target: NA
 
Stop long positions at 10,725. Stop short positions at 10,900. Big moves could go till 10,625, 11,000. A long Sep 12, 10,600p (52), short 10,500p (30) could gain 15-20 if the 10,600 level is struck. READ MORE

Technical calls from HDFC Securities: Sell Axis Bank, Ambuja Cement

Nifty Technical View
 
By plunging more than more than 2 per cent yesterday, Nifty violated the crucial support of 10,875 on closing basis, and closed far below that at 10,797. Nifty has resumed its primary down trend after one sharp pullback from 10,637 to 11,142. The index could witness further selling from current levels towards the next support of 10,350-10,400. Earlier support of 11,875 would now interchange its role as a Resistance. READ MORE

Top stock picks by Religare Broking: Buy Dabur, sell Sept Futures for DLF

Dabur India Limited
 
Recommendation: Buy
 
Last Close: Rs 443.05
 
Initiation range: Rs 435-438
 
Target: Rs 462
 
Stop loss: Rs 423
 
We’re seeing a mixed trend in FMCG front and Dabur is maintaining its positive bias amid volatility. After a strong surge from its crucial support zone around Rs 360 levels on weekly chart, it has witnessed a marginal dip of late, offering fresh buying opportunity. We advise traders to use this chance and initiate fresh longs in the mentioned zone. READ MORE

Bulk deals on BSE as on Tuesday

Bulk deals on NSE as on Tuesday

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


Rupee Check

Source: Bloomberg


Oil Check

At 8:00 am, Brent Crude Futures was at $58.5 per barrel, up 0.41% from its previous close.

SGX Nifty

At 7:55 am, trends on the Singaporean Exchange for Nifty Futures suggested positive start for the indices. The index was trading 41 points higher at 10,860 level.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters
 
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