MARKET WRAP: Infy, RIL support Sensex, Nifty ends below 11,600; banks slip

The benchmark indices ended little changed on Tuesday after two days of spectacular rally as investors booked profits. The S&P BSE Sensex ended at 39,097.14, up just 7 points or 0.02 per cent, with Infosys (up around 4 per cent) being the top gainer and SBI (down over 3.50 per cent) the biggest loser. 

During the session, the index hit an intra-day high and low of 39,306.37 and 38,913.06, respectively. Out of 30 components, 15 settled with gains and the rest 15 declined. 

In the broader market, the S&P BSE MidCap index ended 74 points or 0.51 per cent lower at 14,480.70 levels and the S&P BSE SmallCap index settled at 13,588.20, up 23 points or 0.17 per cent. 

On NSE, the benchmark Nifty50 index ended at 11,588.20, down 12 points or 0.10 per cent.

Sectorally, IT stocks advanced the most, followed by FMCG and pharma counters. The Nifty IT index gained over 2 per cent to 15,338.65 levels. On the flip side, PSU bank stocks bled the most. Nifty Bank lost 383 points or 1.25 per cent to end at 30,183.10. 

BUZZING STOCKS

Shares of Reliance Industries (RIL) rallied 5 per cent to Rs 1,298 in the intra-day deals on the BSE after Morgan Stanley maintained an 'overweight' stance on the stock. The foreign brokerage revised target price of RIL to Rs 1,469 from Rs 1,349, earlier. The stock, eventually, settled at Rs 1,278.55, up 3.22 per cent. 

Shares of the Multi Commodity Exchange of India Ltd. (MCX) surged as much as 10 per cent, to trade nearly two-year high of Rs 1,030, on the BSE on back of heavy volumes. At close, the stock price stood at Rs 992.05 apiece, up nearly 6 per cent. 

GLOBAL MARKETS

Global shares edged up on Tuesday after US Treasury Secretary Steven Mnuchin confirmed US-China trade talks will resume next month, but lingering concerns about slowing global growth reduced the overall appetite for riskier assets. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1 per cent, led by 0.6 per cent gains in mainland Chinese shares. Japan’s Nikkei was up 0.2 per cent. 

In Europe, pan-European Euro Stoxx 50 futures were up 0.26 per cent, German DAX futures were up 0.24 per cent and FTSE futures gained 0.33 per cent. US stock futures, too, gained 0.38 per cent. 

(With inputs from Reuters)

 


4:00 PM IST After two strong sessions, the Nifty took pause on Tuesday and closed weak at 11,588 with minor loss of 12 points. The Index has gap in between 11,382-11,471 levels, hinting that this area will act as a strong support in the coming sessions. For the coming session, the index may remain sideways. It needs to sustain above 11,700 mark to continue its bull-run. Nifty Bank, on the other hand, closed the day at 30,183 levels with loss of 383 points and formed 'Doji Candle' pattern on the daily chart. This indicates indecision. An immediate support for index is near 29,960-29,450 zone, while there is resistance near 30,400-30,800 levels, charts suggest (Source: Rohit Singre, senior technical analyst, LKP Securities)

3:56 PM IST

3:55 PM IST Infosys among key gainers

3:54 PM IST

3:51 PM IST

3:39 PM IST The S&P BSE Sensex ended at 39,097.14, up just 7 points or 0.02 per cent while NSE's Nifty50 index slipped below 11,600 level to end at 11,588.20.

3:24 PM IST ITD, which was quoting lower for the seventh straight day, have plunged 33 per cent during the period, after rating agency ICRA placed ratings of its long-term fund based and non-fund based facilities worth of Rs 4,900 crore of the company under "watch with developing implications". In comparison, the S&P BSE Sensex has gained 4 per cent during the same period. READ MORE

2:47 PM IST

2:47 PM IST

2:33 PM IST

LIVE UPDATES

Tech view on today's trade

After two strong sessions, the Nifty took pause on Tuesday and closed weak at 11,588 with minor loss of 12 points. The Index has gap in between 11,382-11,471 levels, hinting that this area will act as a strong support in the coming sessions. For the coming session, the index may remain sideways. It needs to sustain above 11,700 mark to continue its bull-run.

Nifty Bank, on the other hand, closed the day at 30,183 levels with loss of 383 points and formed 'Doji Candle' pattern on the daily chart. This indicates indecision. An immediate support for index is near 29,960-29,450 zone, while there is resistance near 30,400-30,800 levels, charts suggest

(Source: Rohit Singre, senior technical analyst, LKP Securities)

Public sector bank (PSB) stocks see profit booking


IT stocks rally

Infosys among key gainers



Nifty snapshot


Sensex heat map


CLOSING BELL

The S&P BSE Sensex ended at 39,097.14, up just 7 points or 0.02 per cent while NSE's Nifty50 index slipped below 11,600 level to end at 11,588.20.

ITD Cementation tanks 20% on heavy volumes, hits 4.5-year low

ITD, which was quoting lower for the seventh straight day, have plunged 33 per cent during the period, after rating agency ICRA placed ratings of its long-term fund based and non-fund based facilities worth of Rs 4,900 crore of the company under "watch with developing implications". In comparison, the S&P BSE Sensex has gained 4 per cent during the same period. READ MORE

Buzzing stock | PVR hits 52-week high


NEWS ALERT | Adani Enterprises incorporates 'Adani Guwahati International Airport': BSE Filing


Market check | Sensex sees sudden surge


ICICI Securities on Radico Khaitan

Radico has been able to penetrate the segment and create an own niche for itself. With a continued focus on brand development, newer premium IMFL (Indian Made Foreign Liquor) launches and strong distribution network built over the years, we ascribe a 'BUY' rating to Radico Khaitan with a target price of Rs 400 (18x FY21E P/E).

Indian Bank hits 52-week low


NEWS ALERT | Gross direct tax collection between April-Sept 17 at Rs 5.5 trillion, up 5% YoY: sources to CNBC TV18

-- Advance tax collections at Rs 2.2 trillion, up 6% YoY

-- Personal advance tax collection at Rs 36,00 cr

-- Tax refund pending worth over Rs 70,000 cr 

MARKET CHECK | Around 51 securities hit 52-week low on the NSE

MARKET CHECK | IT stocks rally, Nifty IT index up nearly 2%


Kotak Securities on auto component companies

We expect margins for auto ancillaries in the OEM segment to remain weak as auto OEMs remain under pressure due to weak retail demand. We expect auto ancillary companies to pass on some of the benefits from ETR cut to OEMs as their bargain power in the segment remains low. Companies that derive higher share of business from the replacement segment will be the major beneficiaries due to the ETR cut. We like Amara Raja Batteries, Balkrishna Industries and Varroc Engineering from this space. We have downgraded five stocks – Apollo Tyres (from BUY to ADD), CEAT Tyres & SKF India (from ADD TO REDUCE) and Endurance Technologies & MRF Tyres (from REDUCE TO SELL) on expensive values as stock prices have rallied over the past two trading sessions post the corporate tax rate cut announcement.

NEWS ALERT | Will approach market to borrow Rs 12,000 cr for expansion plan: BSNL CMD to CNBC TV18

-- BSNL waiting Cabinet nod

-- Paid salary to employees through internal sources

NEWS ALERT | Believe Indian Govt will make independent decision on 5G for the long-term benefit of India: Huawei India to CNBC-TV18

-- Huawei says, will continue to abide by rules & regulations of the land
 
-- Believe decision will be based on facts and technical data rather than ideology or a vendor's country of origin
 
-- Believe Indian govt will treatall companies fairly 

NEWS ALERT | Huawei writes to DoT seeking clarity on India stance on it's participation in 5G trials: sources to CNBC TV18

-- Huawei likely to visit India next month
 
-- Seeks clarity on its application for 5G trials in India
 
-- Co reiterates intent to sign 'no-back door' pact with Govt to assuage potential security concerns
 
-- Spl Committee to review applications likely given clearance to Samsung, Nokia, Ericsson. 
 
Alert: India invited applications for 5G trails
 
     : Govt received 6 proposals for 5G tech trials in India in June including Huawei

LIC's investment in the private sector lowest in 16 years at 14.6%

The LIC has reportedly helped bail out a number of public sector enterprises, as well as banks like IDBI, which may have resulted in a shrinking pool available for the private sector. READ MORE 




 

NEWS ALERT | Axis bank to get Rs 1,500-1,700 cr as Tier-I capital from low risk weight: sources to CNBC TV18

-- Domestic Institutions may have contributed 33% to QIP
 
-- Hedge Funds likely subscribed to 16% of QIP
 
-- California-based Fund Dodge & Cox may have put in a bid of Rs 1,300 cr in QIP 

NEWS ALERT | Axis Bank likely to have received RBI's approval to reduce risk weight: sources to CNBC TV18

-- Axis Bank's QIP likely to be priced at Rs 629/sh

-- 48% of QIP expected to be subscribed by long-only FIIs

-- Axis Bank to raise additional Rs 2,500 cr from promoters

Alert: Axis Bank to see cumulative capital expansion of Rs 16,500 cr
 

Threats loom for India’s apparel exporters: ICRA

India’s apparel exports have revived during the current financial year, growing by nearly 4 per cent Y-o-Y during 4M FY2020, after two consecutive years of de-growth, by nearly 3-4 per cent per annum in the previous two fiscals. As per ICRA note, though domestic apparel exports are expected to remain in the positive zone during rest of the year, there are multiple threats looming which could slow down the pace and make it challenging for apparel exporters.
 
Commenting on this, Mr Jayanta Roy, Senior Vice-President and Group Head, Corporate Sector Ratings, ICRA, says, “External environment for India’s apparel exporters remains challenging amid a pick-up in activity on several free trade agreements among the key trading nations, which has intensified competition from nations having a cost advantage over India.”

Prabhudas Lilladher on Multiplex sector

We believe industry profitability and capital efficiency is set to improve as M&A activity is more or less over (top 4 players have cornered ~79% of the multiplex screen count), and share of premium screens and high margin non-ticketing revenue is on a rise. We have a positive outlook on the sector and initiate coverage on PVR (ACCUMULATE with a TP of Rs 2,099) and Inox Leisure (BUY with a TP of Rs 394). Threat from OTT and contagion of local body tax are key risks to our thesis.

STOCK ALERT | Coffee Day Enterprises locked in lower circuit band of 5% at Rs 58.90, also its new all-time low on the BSE


Sector watch | Nifty PSU banks decline


Buzzing | ZEEL snaps 6-day losing streak; rises 3%


MCX jumps 10% to trade near two-year high, rallies 52% in 7 months

Volumes surged after foreign brokerage Morgan Stanley upgraded the rating on MCX to overweight from equal-weight, and raised its price target to Rs 1,260 from Rs 870 per share. The stock has risen sharply from its 52-week low of Rs 644, touched on February 19, 2019, and has outperformed the frontline index by surging 52 per cent in the past seven months. The benchmark S&P BSE Sensex rose 8 per cent during the same period. READ MORE 

NEWS ALERT | Will come up with e-commerce platform called BharatCraft, on lines of Alibaba Group: Nitin Gadkari, reports ET Now

-- Consultation with Commerce Min at final stage to set up BharatCraft, says RBi governor Shaktikanta Das

Index Contributors at this hour


India tycoons running out of time with debt dagger hanging over stocks

Indian media giant Essel Group, run by industry mogul Subhash Chandra, is seeking an extension to repay debt in order to avoid creditors liquidating its shares. The company faces a month-end debt repayment deadline. If that’s not met, creditors can sell shares in the group’s flagship Zee Entertainment Enterprises Ltd. kept as collateral against loans. The case highlights broader risks that borrowings backed by stock pose to the equity market. There’s a lot at stake with share-backed loans currently at about 1.9 trillion rupees ($26.5 billion). READ MORE  


Thomas Cook (India) dips 12% despite clarification on suspicious transaction

Shares of Thomas Cook India slipped up to 12 per cent to Rs 135 in intra-day deals on the BSE on Tuesday, despite clarifying that the company has not received intimation from the Ministry of Corporate Affairs (MCA) over any 'suspicious’ transaction. The stock was trading close to its 52-week low of Rs 121, touched on August 23, 2019. READ REPORT HERE

Market check


NEWS ALERT | SC allows CoC to seek fresh bids from interested parties in Amtek Auto Case: CNBC TV18

-- Supreme Court allows RP 31 days for seeking fresh bids from interested parties. 
 
-- After completion of 31 days, thereafter, 2 weeks will be given for the CoC to evaluate & pick the highest bidder

-- CoC to submit final decision before the SC after taking calls on the offers received

-- CoC tells SC that they have already received offers from 8 interested parties

Alert: CoC is Committee of Creditors

       : RP is Resolution Professional

Edelweiss Seurities on Logistics stocks

We retain ‘BUY’ on Mahindra Logistics (MLL) and TCI Express (TCIE) with revised target prices (TPs) of Rs 580 (from Rs 550) and Rs 850 (from Rs 750), respectively. The revision in TPs is entirely due to upward earnings revision due to the tax cut. For Concor, the upgrade in FY20/21E EPS is 1 per cent, but we are raising the TP by 6 per cent to Rs 600 (from Rs 570) given that the DFC-related option value rises due to lower tax assumptions in future. We value MLL and TCIE on the basis of a three-stage DCF, and Concor as a sum of 18x PE for existing business and DCF for DFC-related cash flows.

NEWS ALERT | SAT directs Sebi to give CG Power report to Gautam Thapar: CNBC TV18

-- The Securities Appellate Tribunal adjourns plea in CG Power case to Thursday, September 26

Reliance Industries gains 5% as Morgan Stanley maintains overweight stance

The brokerage maintained its bullish on expectation that earnings will improves with better refining margins, lower tax rate and cheaper gas feedstock cost. This, combined with a reduction of balance sheet leverage, should de-risk earnings growth and increase investor confidence on the 17 per cent earnings CAGR seen for F2019-22e, which is amongst the top quartile vs. its regional energy and telecom peers, Morgan Stanley said.
 
“Recovery should be slow, but slowing supply (either through rebalancing in the industry or slowing capacity additions) should support margins. We believe the target of zero net debt by F2021 will help lower investor concerns about debt (which has increased steadily over the past seven years),” the report says. READ MORE

NEWS ALERT | PMC Bank put under regulatory restriction under Section 35A of B.R. Act: RBI

-- Restriction for a period of 6 months due to irregularities disclosed to the central bank. 
 
-- PMC Bank cannot accept fresh deposits or give new loans under RBI's directive

-- Depositors will be allowed to withdraw a sum not exceeding Rs 1,000

Alert: PMC Bank is Punjab and Maharashtra Cooperative Bank

       : BR Act is Banking Regulation Act

Read RBI's release here

A Rs 1.45 trillion tax cut may undermine rate reductions in India

India’s $20 billion tax-cut boost may have an unintended effect of keeping borrowing costs high.
 
The premium of 10-year yields over the central bank’s policy rate widened to the most since April after the surprise stimulus announced Friday raised fears the government will miss its budget deficit targets. Traders say the spread offers lenders little incentive to pass on past interest rate cuts to customers. READ MORE

NEWS ALERT | Indian drug regulator writes to state regulators on Rantidine drug: sources to CNBC TV18

-- DCGI asks state regulators to communicate to companies under its jurisdiction

-- Asks to verify products having Rantidine

-- US, EU regulators found traces of Carcinogenic 

-- DCGI has not ordered stoppage or withdrawal of production

Alert: DCGI is Drug Controller General of India
 
        : JB Chem is testing Rantidine in India
 

STOCK ALERT | Manpasand Beverages slips below face value of Rs 10; hit new low of Rs 9.10


Market check


RBI turns down Sebi plan for credit rating agencies' access to defaults

A panel of financial regulators, including the Pension Fund Regulatory and Development Authority and the Insurance Regulatory and Development Authority of India as well as the RBI and Sebi, met last month and discussed a proposal to give CRAs limited access to the RBI’s Central Repository of Information on Large Credits (CRILC). READ MORE

MARKET CHECK | Top gainers on the BSE at this hour


NEWS ALERT | Maintain FY20 GDP growth of 6% despite corporate tax rate cut: Nomura to CNBC TV18

-- Move important from medium-term perspective

 -- Structural issues will bog down India

-- Tax cuts nullify downside risks to growth

-- Sovereign bonds possible, but not seeing it over the next 6 months

Apollo Pipes gains 10% in 2 days after Ashish Kacholia buys nearly 2% stake

On Monday, September 23, Ashok Rameshchandra Kacholia bought 233,513 shares, representing 1.78 per cent of total equity of Apollo Pipes, at Rs 375 apiece in a bulk deal on the BSE. READ MORE HERE

Market check


NEWS ALERT | Coal India workers on strike today to protest against FDI/commercial mining in coal

--  Workmen unions have decided to go on one-day strike to protest against the centre's decision to allow 100 percent foreign direct investment in coal mining, PTI reported

-- Five federations representing over half-a-million workers of Coal India Ltd and Singareni Collieries, called for the strike on September 24

Alert: Coal India produces around 2 million tonne of coal a day

        : Accounts for over 80% of the country's coal production.

Sectoral trends at NSE at this hour


Buzzing | IDBI Bank rises 5%


Market check


Market check


Manappuram Finance trades flat with positive bias


Block Deal | 7% equity of Lemon Tree changes hands on NSE: CNBC TV18

-- 5.5 crore shares, worth Rs 322 cr, changed hands at Rs 58.3/ share

Rupee opens 16 paise higher against US dollar

The rupee on Tuesday opened 16 paise higher at 70.78 against the US dollar. The domestic unit on Monday recovered from day's low levels to close flat at 70.94 helped by foreign fund inflows into equities and lower global crude oil prices. According to provisional data, foreign investors pumped in Rs 2,684 crore on a net basis in capital markets on Monday. READ MORE   


NEWS ALERT | Income-Tax Dept is mulling requests to extend deadline for business I-T audit: sources to CNBC TV18

-- Several representations have been made to Finance Ministry

Alert: Current deadline is Sept 30

Reliance Capital slips 1%


ICRA declines over 1% during the early trade


DHFL adds over 2%


Biocon trades flat with positive bias


CG Power trades over 1% higher


Reliance Industries rises over 3%


BUZZING STOCK | Maruti up over 3%


BUZZING STOCK | Zee Entertainment slips over 2%


BUZZING STOCK | Apollo Pipes gains over 4%


Aurobindo Pharma slips nearly 3%


SECTOR WATCH | Top gainers and losers on the NSE


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


OPENING BELL

At 09:20 am, the S&P BSE Sensex was trading 74 points or 0.19 per cent higher at 39,164.07 levels, while NSE's Nifty50 index was trading at 11,587, down 13 points or 0.11 per cent. 
 

NEWS ALERT | Biocon arm to acquire bio-park in Chennai: BSE Filing


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 higher at 70.78/$ vs Monday's close of Rs 70.93

Climate change is real: How it is becoming a nightmare for central banks

Bank of England Governor Mark Carney was in no mood for laughter as he stood in his tuxedo before the great and good of the British insurance industry.
 
“I’m going to give you a speech without a joke, I’m afraid,” Carney began his remarks on the night of Sept. 29, 2015, at Lloyd’s of London. “So charge your glasses and prepare yourself because I’m going to talk about a serious subject.” READ MORE

Retail onion prices hit Rs 60 per kg in Mumbai on reduced supply

Onion has become costlier by over 33 per cent in the last one week and over 70 per cent in September so far. Farmers and stockists have reduced supply from cold storage amid expectations of further increase in prices. In Mumbai wholesale mandi, onion supply has declined to 140 tonnes now from the level of 2500 tonnes in the peak arrival season. READ MORE HERE

NEWS ALERT | DHFL to hold meeting with bank lenders to discuss draft Resolution Plan: BSE Filing

-- Meeting wih lenders on Wednesday, Sept 25

--Meeting will also be held on Friday, 27th September 2019 by the Company with all its institutional creditors in connection with the draft Resolution Plan

Double tax relief expands room for growth of hotel firms; stocks rise

Apart from the gains from the reduced corporate tax rates announced last Friday, the hotel sector is blessed with lower goods and services tax rates. With a 2.8 per cent rise in the BSE Sensex, the stocks of most of the hotel players gained 7-20 per cent on Monday. And, analysts see more gains ahead for hotel companies. READ MORE HERE

Lower tax rates won't change fundamental concerns for banking stocks

With a jump of over 5 per cent on Monday and 14 per cent since last Friday, the Nifty Bank index stands out as the largest gainer. Part of these gains could be correlated with the fact that most brokerages believe the lower tax rate could strengthen earnings and the return profile of banks.  READ REPORT HERE

Stocks to watch: Aurobindo Pharma, RIL, Apollo Pipes, Phoenix Mills, ZEEL

Here's a look at the top stocks that may remain in focus today -
 
Aurobindo Pharma: Sebi has imposed a total penalty of about Rs 22.6 crore on Aurobindo Pharma, its promoter P V Ramprasad Reddy, his wife P Suneela Rani and other connected entities for violating insider trading rules.
 
Reliance Industries (RIL): Foreign brokerage Morgan Stanley has maintained 'overweight' stance on the stock with the revised target price of Rs 1,469 from Rs 1,349, earlier. READ MORE

No need to ban petrol, diesel vehicles; EVs picking up pace naturally: Govt

Earlier, government think-tank Niti Aayog had reportedly proposed that after 2030, only electric vehicles (EVs) should be sold in India. Later, Union ministers, including Petroleum Minister Dharmendra Pradhan, tried to allay the fear of automobile manufactures in the country by denying that. READ MORE HERE

Here's why cut in corporate taxes failed to cheer the mining sector

The government’s latest move to pare corporation taxes has failed to perk up the mining sector already burdened with a slew of levies like royalty, the goods and services tax (GST), and mandatory contributions to the District Mineral Foundation (DMF) and the National Mineral Exploration Trust (NMET). The Federation of Indian Mineral Industries (FIMI) feels that even after the government slashed corportion tax rates, the taxation rate is still steep for the mining sector. READ FULL REPORT HERE

Debenture trustee sells Rs 200 crore of Zee Entertainment shares

Catalyst Trusteeship, acting on behalf of one or a few debenture holders, sold Rs 204 crore worth of Zee Entertainment’s shares in a bulk deal on Monday. Zee shares were placed as collateral with various mutual funds (MFs) and lenders, which had taken loan-against-share (LAS) exposure to Essel Group firms. READ MORE

Why high cash calls could be a double-edged sword for fund managers

The Nifty’s sharp turnaround — rising 895 points or 8.4 per cent — over the last two trading days (Friday and Monday) has suddenly changed the narrative for stock market investors. Just a week ago, many were celebrating fund houses that were sitting on high cash to protect the investor from losing more money. READ MORE

Excess surcharge paid by FPIs to be adjusted in future tax payments

The higher tax paid would depend on the quantum of individual FPIs’ selling during the past two months and the gains realised. Between July and August, FPIs sold shares worth about Rs 30,000 crore. READ FULL REPORT HERE

Higher earnings hope powers Sensex run; analysts expect it to touch 45,000

Investor sentiment has taken a dramatic turn from bearish to bullish following the government’s move to lower taxes.
 
Both the indices last week had dropped to their lowest levels since February. However, with the stellar gains made in the past two sessions, the Sensex is less than 3 per cent away from its all-time high 40,268, which it touched in early-June. Overseas investors were strong buyers on Monday, lapping up shares worth Rs 2,684 crore. In the previous sessions, their buying was muted, even as domestic institutions had pumped in over Rs 3,000 crore into stocks. READ MORE

Today's picks: From BPCL to Cipla, hot stocks to watch on Tuesday

Nifty
 
Current: 11,603 (fut: 11,601)
 
Target: NA
 
Bank Nifty
 
Current:
 
30,548 (fut: 30,590)
 
Target: NA READ MORE

Bulk deals on BSE as on Monday

Bulk deals on NSE as on Monday

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


Rupee Check

Source: Bloomberg


Oil Check

At 7:50 am, Brent Crude Futures were at $63.42 per barrel

SGX Nifty

At 7:49 am, SGX Nifty was trading 49 points higher at 11,650 level

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


Good morning!

Welcome to the Business Standard live blog.

Catch all the live market updates here.