MARKET WRAP: Sensex ends 434 pts lower as RBI cuts GDP forecast; banks slip

Topics Markets | MARKET WRAP

A 25 basis point (bps)-rate cut by the Reserve Bank of India (RBI) on Friday failed to cheer market participants as concerns over slowing economic growth dented investor sentiment. In its fourth bi-monthly monetary policy meet, the RBI's monetary policy committee (MPC) did cut the repo rate, as widely expected; however, a sharp reduction in the GDP growth forecast to 6.1 per cent for the financial year 2019-20 (FY20) caught investors off guard. 

Benchmark indices, S&P BSE Sensex and NSE's Nifty50, lost over 1 per cent, thus taking their losing streak to the fifth consective session. 

The S&P BSE Sensex dropped 434 points or 1.14 per cent to settle at 37,673.31. Financial stocks led the decline with HDFC Bank, ICICI Bank, and Axis Bank falling up to over 3 per cent. 

On the NSE, the frontline index Nifty50 ended at 11,175, down 139 points or 1.23 per cent. 

On a weekly basis, Sensex shed nearly 3 pe cent while Nifty50 lost 2.93 per cent. 

On the sectoral front, Nifty Bank index slid nearly 700 points or 2.40 per cent to settle at 27,731.85 levels, with 10 out of 12 constituents ending in the red. Nifty IT index was the only sectoral index on the NSE that ended in the green. The Nifty IT index ended at 15,340.30, up 62 points or 0.41 per cent. 

In the broader market, the S&P BSE MidCap index lost 131 points or 0.94 per cent to settle at 13,713.79 levels, while the S&P BSE SmallCap index closed at 12,809, down 102 points or 0.79 per cent. 

GLOBAL MARKETS

Asian stocks edged up on Friday, thanks to gains on Wall Street, but signs of widening cracks in the global economy curbed risk appetite as markets looked to a key US job report that could determine whether the Federal Reserve cuts rates further. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent. Japan's Nikkei stock index rose 0.22 per cent, and Australian shares rose 0.54 per cent.

The pan-region Euro Stoxx 50 futures were up 0.44 per cent, German DAX futures 0.33 per cent higher and FTSE futures advanced 0.69 per cent.

In commodities, oil futures were higher ahead of the weekend but remained on track for large weekly losses on fears that slower global economic growth will hurt fuel demand.

(With inputs from Reuters)

3:47 PM IST RBI cut policy repo rates by 25 bps to 5.15%. The issue is, however, the transmission of these rates in the system. It is a dichotomy that the one who needs money does not get it, and the one who is offered does not need it!   Equity markets are  cautious about the earnings season, which at this juncture looks less enthusiastic. There is a possibility that equity markets will trade cautiously and range-bound. In medium-to-long term. That said, there are good investment opportunities available.

3:42 PM IST Despite RBIs and Govt’s synchronized effort to offset a slowdown in the economy, investors have taken a pessimistic view due to continued downward revision in GDP estimate and new stress in the banking system. The Govt’s measures do have the potential to enhance consumption and spur investment but lag in transmission of cumulative rate cuts is adding a layer of complexity in the recovery

3:41 PM IST

3:40 PM IST

3:39 PM IST (Image source: BSE)

3:38 PM IST Banks pull index down; IT stocks stem fall

3:35 PM IST The S&P BSE Sensex slipped 434 points or 1.14 per cent to end at 37,673.31, while NSE's Nifty50 breached the crucial 11,200 level to close at 11,174.75, down 139 points or 1.23 per cent.

3:12 PM IST

3:11 PM IST

2:57 PM IST Top IT services companies are likely to report steady growth in earnings during the second quarter of the financial year though revenue increase on year-on-year is likely to take a hit owing to uncertainties in the macro environment. Though deal closures are likely to be affected compared to previous quarters, Infosys and HCL Technologies are expected to lead in revenue growth following the ramping up of some of their major outsourcing contracts. READ MORE

2:45 PM IST (Source: Bloomberg)

LIVE UPDATES

MARKET COMMENT :: Motilal Oswal, MD, Motilal Oswal Financial Services

RBI cut policy repo rates by 25 bps to 5.15%. The issue is, however, the transmission of these rates in the system. It is a dichotomy that the one who needs money does not get it, and the one who is offered does not need it!
 
Equity markets are  cautious about the earnings season, which at this juncture looks less enthusiastic. There is a possibility that equity markets will trade cautiously and range-bound. In medium-to-long term. That said, there are good investment opportunities available.

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

Despite RBIs and Govt’s synchronized effort to offset a slowdown in the economy, investors have taken a pessimistic view due to continued downward revision in GDP estimate and new stress in the banking system. The Govt’s measures do have the potential to enhance consumption and spur investment but lag in transmission of cumulative rate cuts is adding a layer of complexity in the recovery

Here's how Nifty Bank did today


Nifty snapshot


HDFC Bank, ICICI Bank contribute most to Sensex's fall today

(Image source: BSE)


Sensex slides as financials drag

Banks pull index down; IT stocks stem fall



CLOSING BELL

The S&P BSE Sensex slipped 434 points or 1.14 per cent to end at 37,673.31, while NSE's Nifty50 breached the crucial 11,200 level to close at 11,174.75, down 139 points or 1.23 per cent.

BUZZING STOCK | Titan Co slumps around 4%


Market check


Q2 earnings: Top IT services companies likely to report steady growth

Top IT services companies are likely to report steady growth in earnings during the second quarter of the financial year though revenue increase on year-on-year is likely to take a hit owing to uncertainties in the macro environment. Though deal closures are likely to be affected compared to previous quarters, Infosys and HCL Technologies are expected to lead in revenue growth following the ramping up of some of their major outsourcing contracts. READ MORE

RUPEE CHECK

(Source: Bloomberg)

NEWS ALERT | Govt has taken note of the RBI's revised growth projection for GDP: Fin Min

Alert: RBI revised the FY20 GDP to 6.1% from 6.9% earlier

NEWS ALERT | The RBI's measure to cut repo rate from 5.4% to 5.15% will complement govt's recent measures to accelerate growth: Fin Min

Union Finance Minister Nirmala Sitharaman

COMMENT ON RBI POLICY :: Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers

Despite the 25 bps rate cut today being at the lower bound of expectations, RBI remains concerned on growth and guided for continued accommodative monetary policy stance. While RBI continues to expect growth revival in the second half of FY20, growth rates have been reduced for both FY20 and Q1FY21. In line with these, RBI maintains an expansionary stance on the liquidity side also. We now expect that rather than 5%, the repo rate in this cycle would bottom out at 4.5%. RBI?s stance coupled with recent government measures bode well for the equity market. We also feel that the likely deeper policy rate cut coupled with focus of the RBI on transmission of policy rate cut in the credit market would result in bond yields softening more than earlier expected.

NEWS ALERT | Altico Cap seeks standstill period after signing ICA: sources to CNBC TV18

-- Altico has Rs 1,100-1,200 cr liabilities due in a month
 
-- 4-5 players have shown interest in buying stake or portfolios of Altico
 
-- PE players Cerberus Cap, Apollo Global, Edelweiss Spl Opportunities Fund, SSG Capital, Kotak Realty Fund in talks with lenders for potential deal
 
-- YES Bank, HDFC Bank, SBI, IFC, Bank of Baroda among key lenders to Altico Cap
 
--UTI MF, Reliance MF, Hero Fincorp key MFs with exposure to Altico
 
Alert: Altico Cap has liabilities of over Rs 4,300 cr including term loans & NCD dues

Aavas Financiers hits new high after RBI hikes lending limit for NBFC-MFIs

In the past two weeks, the stock has rallied 13 per cent, as compared to a 0.38 per cent decline in the benchmark S&P BSE Sensex. On September 16, 2019, Aavas had received an investment of Rs 345 crore from IFC, a member of the World Bank Group, through issuance of non-convertible debentures (NCDs). The company said it will use the proceeds to grow its affordable housing finance program in the rural and semi-urban areas of Rajasthan, and neighboring areas. READ MORE  

NEWS ALERT | Cabinet approves new process for strategic divestment: sources to CNBC TV18

-- Dipam to be nodal agency for divestments

-- Tweaks in process to enable faster approvals, roadshows

-- Shareholder consumltation on stake sale possible in pre-EoI stage 

Alert: Dipam is Department of Investment and Public Asset Management

MARKET CHECK | Bank stocks slide


Market check | Nifty breaches 11,200


Market check | Sensex declines nearly 400 pts


NEWS ALERT | Effective date for co's merger with Bandhan Bank fixed as October 17, 2019: Gruh Finance via BSE filing

-- It is also fixed as record date for NCD holders of the Co

Market check


From GDP growth revision to NEFT availability: Key highlights of RBI Policy

Here are the key highlights from the October MPC meeting
 
GDP outlook revised: Highlighting the slowdown in the economy, the MPC cut fiscal year 2019-20 (FY20) GDP forecast to 6.1 per cent from 6.9 per cent. This came in as a surprise for most economists.
 
The RBI revised the real GDP to 5.3 per cent in Q2FY20 and in the range of 6.6-7.2 per cent for H2FY20. The central bank, also, negatively revised the GDP growth for Q1FY21 to 7.2 per cent. READ MORE

Top 5 gainers on the BSE at present


Top 5 losers on the BSE at present


MARKET CHECK | Sensex slips nearly 200 pts


Nomura's view on interest rate cut

Considering the weaker-than-expected growth outlook, we believe a front-loaded policy action would have been the right approach, as it would have enabled banks to sharply lower their lending rates ahead of the upcoming festive season.
 
While we are broadly in agreement with the RBI’s inflation trajectory, we believe the lowered FY20 growth projection is still optimistic. We see downside risks to our FY20 growth forecast of 6%, although we do expect the growth rate cycle to improve due to the lagged effects of easier monetary policy.
 
On policy, the RBI’s growth projection is set to be disappointed again at end-November (when Q3 GDP data are out), which keeps the door open to another cut at the December policy meeting. However, with the RBI having already delivered 135bp rate cut and diminishing marginal returns from each additional rate cut, we believe the rate easing cycle is closer to its end. We expect the RBI to deliver a final 15bp cut in December.

MADAN SABNAVIS: A cut in rate was expected; a cut in GDP growth target was not

It was widely expected that the Reserve Bank of India (RBI) would cut interest rates on Friday for two reasons. The first is that by now it has become a habit where low growth tendencies, which have taken precedence over the original goal of inflation targeting gets thumbs-up for a rate cut. The second is that over the last month or so, the government has announced various steps to revive the economy with the last measure being the corporate tax cut. A rate cut after all these announcements appeared to be a foregone decision. READ MORE  

COMMENT ON RBI POLICY :: Mahendra Jajoo, Head-Fixed Income, Mirae Asset Global Investments

MPC cut key policy rates by 25 bps in line with market expectations. RBI largely retained inflation projections for next year and revised downward growth projections. In view of that, further rates cuts may be expected in forthcoming policy reviews. While money market rates eased in response, bond yields inched up slightly as traders remain apprehensive of larger than currently scheduled borrowings by government. Market will now look forward to any possible OMO purchase operations to get comfort on absorption of additional supplies if any. We expect over all bond yields to remain range bound with easing bias

COMMENT ON RBI POLICY :: Shishir Baijal, Chairman & Managing Director, Knight Frank India

In light of the ongoing economic distress in the country, the 25 basis points cut in policy rate is short of expectation. While it is the fifth consecutive rate cut this year, it is insufficient to support the flagging consumer demand. The stressed real estate sector was looking up to a strong rate cut and sector specific lending provisions to improve both liquidity scenario and consumer spending ability. As has been witnessed so far, a cumulative 110 bps repo rate cut over the last 6 quarters has failed to stimulate consumer demand as well as private investment in the economy

COMMENT ON RBI POLICY :: Romesh Tiwari, Head of Research, CapitalAim

The rate cut by 25 bps was expected by the market and is no surprise. I think the market will react indifferently to the statements from RBI about the expectations of the revival of domestic demand due to various measures taken by the government in the last couple of months and the assurance by the governor that the RBI will continue with an accommodative stance on monetary policy as long as needed.

The downward revision of GDP for the June quarter of 2020 is not a surprise and the market is already discounting it. The market movement will not be much impacted with these measures 

COMMENT ON RBI POLICY :: Sujan Hajra, Chief Economist and Executive Director, Anand Rathi

While RBI continues to expect growth revival in the second half of FY20, growth rates have been reduced for both FY20 and Q1FY21. In line with these, RBI maintains an expansionary stance on the liquidity side also.

We now expect that rather than 5%, the repo rate in this cycle would bottom out at 4.5%. RBI'ss stance coupled with recent government measures bode well for the equity market. We also feel that the likely deeper policy rate cut coupled with focus of the RBI on transmission of policy rate cut in the credit market would result in bond yields softening more than earlier expected

COMMENT ON RBI POLICY :: Lakshmi Iyer, CIO (Debt) & Head Products, Kotak Mahindra AMC

The RBI MPC voted for 25 bps repos rate cut. It also remained committed to maintaining accommodative stance that aids growth-revival to the extent needed. The tone seems tilted towards a softening bias. With the intent to maintain adequate liquidity in the banking system, bond yields could remain well anchored. This is conducive especially for short end of the yield curve. Global factors will assume centre stage now, which will determine near term movements in the yield

Rate sensitive stocks trade mixed after RBI cuts repo rate by 25 bps

Shares of rate sensitive sectors such as banking, automobiles and real estate were trading mixed in the afternoon deals on Friday, thus erasing their early morning gains despite the Reserve Bank of India (RBI) slashing the repo rate by 25 basis points (bps) to 5.15 per cent. READ MORE  


EXPERT TAKE | VK Vijayakumar, Chief investment strategist, Geojit Financial Services

The big takeaway from the extremely accommodative monetary is that the central bank and the Government are in sync on the policy response to revive growth. The MPC’s view that there is further policy space for accommodation to revive growth clearly indicates that more rate cuts are in the offing. Eventually the Repo rate is likely to settle at 4.75 per cent in this rate cut cycle. This is good news for the markets even though the markets are concerned about the issues in the NBFC and housing finance space. 

EXPERT TAKE | K Joseph Thomas, Head Research - Emkay Wealth Management

RBI has once again proved to be well ahead of the curve in unleashing monetary efficacies to combat the economic slowdown, in perfectly complementing the fiscal initiatives, with the cut of 25 bps - bringing down the repo rate to 5.15 per cent. In conformity with this aggressive approach, RBI is likely to continue with its campaign for more rapid transmission of the benefits to credit users, through lower rates to a large extent linked to the base rate. There may be further cuts in the rate in the light of the GDP growth forecast being lowered form 6.90 per cent to 6.10 per cent for FY 20. We need to see more action from the government for a consumption-led recovery.

NEWS ALERT | Indicators of rural and urban development continue to slow down: RBI Guv

-- Retain H2FY20 CPI inflation forecast of 3.5-3.7%; 

-- Prospects of Rabi season has brightened; 



Who voted in favour of a cut in rates today?

All members of the MPC voted to reduce the policy repo rate and to continue with the accommodative stance of monetary policy. Dr. Chetan Ghate, Dr. Pami Dua, Dr. Michael Debabrata Patra, Shri Bibhu Prasad Kanungo and Shri Shaktikanta Das voted to reduce the repo rate by 25 basis points. Dr. Ravindra H. Dholakia voted to reduce the repo rate by 40 basis points: RBI

Real GDP growth projection

(Source: RBI policy statement)



Market check | Sensex slips in the red


CPI projection

(Source: RBI policy statement)



FY20 GDP projection revised downward

Real GDP growth for 2019-20 is revised downwards from 6.9 per cent in the August policy to 6.1 per cent – 5.3 per cent in Q2:2019-20 and in the range of 6.6-7.2 per cent for H2:2019-20 – with risks evenly balanced; GDP growth for Q1:2020-21 is also revised downwards to 7.2 per cent

Four factors impacting inflation: RBI

First, the outlook for food inflation has improved considerably since the August bi-monthly policy. Kharif production is estimated at close to last year’s level, auguring well for the overall food supply situation. Vegetable prices may remain elevated in the immediate months but are likely to moderate as winter supplies enter the market. Prices of pulses are expected to remain contained by adequate buffer stocks.

Secondly, forward looking surveys conducted by the Reserve Bank point to weak demand conditions persisting, with indications of softening of output prices in Q3:2019-20. Accordingly, price pressures in CPI excluding food and fuel are likely to be muted.

Thirdly, crude oil prices may remain volatile in the near-term; while global demand is slowing down, the persisting geo-political uncertainties pose some upside risks to the inflation outlook.

Fourthly, three-month and one-year ahead inflation expectations of households polled by the Reserve Bank have risen in the current round reflecting near-term price pressures. Finally, financial markets remain volatile with currencies of several emerging market economies trading with a depreciating bias in the recent period.


Sector watch | Nifty Bank index decline


RBI policy statement

In the third bi-monthly resolution of August 2019, CPI inflation was projected at 3.1 per cent for Q2:2019-20, 3.5-3.7 per cent for H2:2019-20 and 3.6 per cent for Q1: 2020-21 with risks evenly balanced. The actual inflation outcomes for Q2 so far (July-August) at 3.2 per cent have been broadly in line with these projections

Market check | Sensex trims gains


NEWS ALERT | 25 bps rate cut voted with 5:1 majority

-- 5 members voted for 25 bps, 1 member voted for 40 bps cut

RBI cuts repo rate by 25 bps to 5.15%, maintains accommodative stance

Extending its rate cut spree into the fifth time in a row, the monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Friday slashed the repo rate by 25 basis points (bps) to 5.15 per cent.
 
Repo rate is the rate at which the central bank lends money to the commercial banks, in case of any shortfall in funds.
 
Consequently, the reverse repo rate now stands at 4.9 per cent. READ MORE  

Info Edge India gains for third consecutive day, hits 2-month high

Shares of Info Edge (India) surged for the third straight day, up 6 per cent intra-day today, to hit a two-month high of Rs 2,242 on the BSE on Friday after the company invested Rs 6 crore in Happily Unmarried Marketing through its wholly-owned subsidiary.
 
“As part of company’s strategic investments, the investment would help the company to consolidate its position into the said line of business within the Internet Services industry,” Info Edge (India) said in regulatory filing on Tuesday. READ MORE

NEWS ALERT | Alembic Pharma JV, Aleor Dermaceuticals gets US FDA approval for Clobetasol Propionate Spray, 0.05%: BSE filing


Consumer sentiment to remain subdued; banks may re-rate: Vinay Paharia

The reduction in corporation tax has immediately resulted in an increase in fair value of companies. While previous concerns such as domestic as well as global economic slowdown continue to remain, valuations have become attractive due to the improvement in the underlying fair value. The corporation tax cut could result in the improvement in economy’s investment demand and bring back the animal spirits. READ FULL INTERVIEW HERE
Vinay Paharia-Union AMC

IPO activity drops in September quarter amid volatility in secondary market

IPO activity witnessed a slump during the three months ended September, amid sharp volatility in the secondary market. The quarter saw only 10 deals — 78 per cent lower than the previous quarter. In terms of number of deals, India ranked sixth globally. READ MORE

Danger ahead | $63-bn stalled real estate projects a threat for Indian banks

Ashish Shah is caught in the middle of India’s latest financial crisis. As chief operating officer of Radius Developers, he’s struggling to fund construction of apartment complexes because of a liquidity crunch in the nation’s bloated shadow-banking sector.
 
“Real estate is a sitting duck,” said Shah. “The timing is very crucial as the slowdown has hit the real estate market quite hard. The industry can’t service interest, new interest, additional interest, because there is no cash flow.” READ MORE

Services activity falls to 48.7 in Sep; second contraction this year: PMI

India's dominant services sector slipped into contraction in September as new business orders fell for the first time since early 2018, according to a private survey which also found business optimism at its lowest in 2-1/2 years.
 
Friday's survey adds to the deepening gloom around businesses and consumers, underlining the broadening cracks in the economy as growth slipped to six-year low in the April-June quarter. READ MORE

NEWS ALERT | The IHS Markit Services Purchasing Managers' Index fell to a 19-month low of 48.7 in September

-- It was the second month this year the index had fallen below the 50-mark separating growth from contraction - the last one being in June

NEWS ALERT | September Services PMI at 48.7 vs 52.4 MoM: Reuters

-- Composite Services PMI at 49.8 vs 52.6 MoM

Lakshmi Vilas Bank nears 10-yr low; dips 22% in 5 days on RBI's PCA action

Shares of Lakshmi Vilas Bank (LVB) were locked in the 5 per cent lower circuit band for the fifth consecutive trading day at Rs 29.85 on the BSE, after the Reserve Bank of India (RBI) initiated prompt corrective action (PCA) against the bank. This stock was quoting at nearly a decade low on the exchange.
 
The stock of the private lender was trading close to its all-time low price of Rs 26.08 touched on March 4, 2009. In the past five trading days, it has tanked 22 per cent, as compared to a 2 per cent decline in the S&P BSE Sensex. READ MORE

NEWS ALERT | ED registers case against Waryam Singh, Sarang & Rakesh Wadhawan: CNBC TV18

-- Registers case in the PMC Bank matter against former chairman of the bank Waryam Singh, Sarang & Rakesh Wadhawan; former MD of PMC Bank, Joy Thomas, MD of HDIL

Monetary policy review: RBI set to cut rate. Question is by how much?

The Reserve Bank of India is set to deliver a fifth straight interest rate cut Friday, although economists are unsure of the quantum following an unconventional 35 basis-point easing last time.
 
While all 39 economists surveyed by Bloomberg News expect a reduction, their forecasts range from 15 basis points to 40 basis points. The RBI has lowered borrowing costs to a nine-year low of 5.4% through 110 basis points of easing so far in 2019. READ MORE

Auto, construction sectors slowdown to drag non-ferrous metals demand

Slowdown in automobile and construction sectors is likely to keep demand of non-ferrous metals in the country muted through the rest of this fiscal year.
 
A forecast by ratings agency Icra notes that the consumption growths of aluminium, copper and zinc are slated to remain tepid in the range of 3-5 per cent, weaker than the previous anticipation of 6-7 per cent. READ MORE

Monetary Policy: Here's what leading brokerages, analysts expect from RBI

The central bank has already slashed the repo rate four times consecutively this year amounting to 110 basis points in aggregate. The upcoming monetary policy committee (MPC) meeting comes in the backdrop of the RBI's mandate to banks to link their loan products to an external benchmark, like repo rate, for faster transmission of reduction in policy rates to borrowers, from October 1.
 
While rate cut is almost certain, the quantum of cut and the policy stance will be keenly watched by the market participants. READ MORE

Manpasand Beverages slips over 4%

-- Batliboi & Purohit resigned as statutor auditor on Thursday with immediate effect.


BPCL trades flat with negative bias

-- The international Credit Rating Agency Moody's on Thursday warned of downgrading Bharat Petroleum Corporation (BPCL) to Ba1, if the government goes ahead with privatisation by selling its stake to private entity.

HDIL slips 4% after EOW arrests Rakesh and Sarang Wadhawan

Alert: They are the promoters of HDIL


YES Bank gains over 5%


SECTOR WATCH | Gainers and losers on the NSE


MARKET CHECK | Top gainers and losers on the S&P BSE Sensex


OPENING DEALS

At 09:21 am, the S&P BSE Sensex was trading 285 points or 0.75 per cent higher at 38,391.96 while NSE's Nifty50 index was ruling at 11,383.40, up 69.40 points or 0.61 per cent. 

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


Market at Pre-open


Market at Pre-open


Rupee Opening Alert

Rupee opens flat at 70.88 vs Thursday's close of Rs 70.89

RBI's external benchmark move: Public sector banks set lower loan rates

A number of banks have met the Reserve Bank of India’s (RBI’s) October 1 deadline and launched loan products linked to external benchmarks. Most have chosen to link their home loan rates to the repo rate.
 
Only Citibank has a product (launched in March 2018) linked to the three-month treasury bill rate. READ MORE

HDIL, BPCL, Tata Steel, Manpasand Beverages, rate-sensitive stocks to watch

Here's a look at the top stocks that may trade actively in today's session -
 
HDIL: The economic offences wing (EOW) of the Mumbai police arrested Housing Development & Infrastructure (HDIL) promoter Rakesh Wadhawan and his son Sarang Wadhawan on Thursday in connection with the Punjab and Maharashtra Co-operative (PMC) Bank scam. 
 
BPCL: The international Credit Rating Agency Moody's on Thursday warned of downgrading Bharat Petroleum Corporation (BPCL) to Ba1, if the government goes ahead with privatisation by selling its stake to private entity. READ MORE

Amidst exuberance, Bajaj Finance investors may be caught on the wrong foot

Bajaj Finance’s loan book, whether in size or granularity, doesn’t come close to that of India’s largest bank — State Bank of India (SBI). Yet, Bajaj Finance’s stock made waves lately when it pipped SBI in terms of market capitalisation.
 
Trading at nearly 8x its 2019-20 (FY20) book, valuations have always been pricey for the Bajaj Finance stock. At current levels, it is at 10–20 per cent above its five-year average valuation. READ MORE

Investors could use dips to buy expensive retail stocks, say analysts

The share price of many retailers, and across categories such as apparel, footwear, jewellery, grocery, etc, have gained significantly in the recent past, with some also near their all-time highs.
 
While a part of this is due to corporate tax rate cuts announced recently, it is also due to the government’s efforts to boost economic activity, companies’ initiatives/potential to expand and grow fast, and better use of capital. READ MORE

Commodity outlook by Bhavik Patel of Tradebulls Securities: Buy Gold, Lead

Gold has managed to recover as it is trading above 20 and 50 day moving average. We said before that gold is positive as long as it is above $1504 as it is 15DMA on the daily chart in COMEX. Now that level comes to 1502 so only above $1500 we could see next stage of the rally. Underlying trend still is bullish but strong US dollar is giving pressure to gold. READ MORE HERE

Nifty outlook and top trading ideas by CapitalVia: Buy Eicher Motors, ITC

Nifty managed to hold 11,300 level amid weekly expiry and weaker global scenario; all eyes on Friday as RBI to announce monetary policy
 
Markets traded with higher volatility on Thursday, weaker global cues made adverse impact on the market but somehow the index managed to hold 11,250 and managed to close at 11,314.00 shading 45.90 points. Media and realty stocks traded with positive sentiments throughout the day, but metal and banks especially private banks showed weakness which dragged markets down. Niftybank closed at 28,414.10 that is 311.40 points lower from the previous day’s closing. READ MORE HERE

Derivatives strategy on Tata Motors by HDFC Securities

Buy Tata Motors October 125 Call at Rs 7 | Stop loss Rs 4.5 | Target Rs 13
 
Rationale:
 
-- We have seen long build up in the Tata Motor futures’, where we have seen rise in Open Interest with price rising by 6 per cent.
 
-- Stock price formed bullish engulfing pattern on the daily chart READ MORE

Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday

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


Rupee Check

Source: Bloomberg


Oil Check

At 8:07 am, Brent Crude Futures were at $57.92 per barrel, up 0.36 per cent from it's last close.

SGX Nifty

At 8:05 am, the Singaporean Exchange for Nifty Futures were trading 26 points higher at 11,385 level.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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