MARKET: Sensex up 228 pts on reports govt may rollback higher tax on FPIs

Indices settled higher on Friday ahead of finance minister Nirmala Sitharaman's media address, scheduled later in the day, wherein measures to revive the economy, clarity on the possible rollback of super-rich tax on FPIs, and implementation of direct tax code (DTC) are expected. 

That apart, investors were also eyeing Federal Reserve chair Jerome Powell's speech at Jackson Hole, Wyoming for clarification on whether the US central bank remains on course to deliver another interest rate cut in next month.

The benchmark S&P BSE Sensex settled 228 points, or 0.63 per cent, higher at 36,701 levels lifted by gains in metals, and public sector banks' stocks. Vedanta, YES Bank, ONGC, and M&M were the top gainers at the 30-share index, while IndusInd Bank, ITC, ICICI Bank, and Power Grid ended as top laggards. The broader Nifty50, too, closed at 10,829-mark, up 88 points or 0.82 per cent.

The Sensex and Nifty50 settled nearly 600 and 192 points higher, respectively from the day's low.

For the week, both Sensex and Nifty50 settled in the negative territory for second week in a row, down 2 per cent each. Further, Nifty Bank index slipped 4.5 per cent this week, registering the biggest weekly fall in 11 months, while Nifty mid-cap index settled 3 per cent lower, its biggest monthly fall.

Sectorally, indices for private bank and FMCG stocks ended in the red. Nifty media index ended as the top gainer, up 4.2 per cent, followed by Nifty metal index (up 3.3 per cent), and Nifty PSU bank index (up 2 per cent). Nifty FMCG and PSB indices closed with cuts of 0.35 per cent each. 

In the broader market, mid-cap scrips fared better than small-cap stocks. The S&P BSE mid-cap index settled 121 points, or 0.93 per cent, higher at 13,202 level, as against a gain of 67 points, or 0.55 per cent, at the S&P BSE small-cap index, which closed at 12,186 level.

GLOBAL CUES

World stock markets and the dollar rose on Friday ahead of Federal Reserve chair Jerome Powell's speech on future rate cuts by the US central bank. 

Suggesting markets remain broadly confident of further Fed easing, European stocks rebounded from the previous day’s falls, with the pan-European STOXX 600 index gaining as much as half a percent in early deals. Britain’s FTSE 100 index was up 0.64%.

MSCI’s All Country World Index, which tracks shares across 47 countries, was up 0.1% and set to break a three-week losing streak.

Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan edged 0.3% higher and was up 1.0% for the week, on track to break a four-week losing streak. Japan’s benchmark Nikkei advanced 0.4% and Australian stocks added 0.3%.  

(With inputs from Reuters)

3:39 PM IST

3:39 PM IST

3:36 PM IST The S&P BSE Sensex gained 228 points or 0.63 per cent to settle at 36,701 levels while NSE's Nifty50 index ended at 10,829, down 88 points or 0.82 per cent.  36,701.16

3:30 PM IST The country's largest lender State Bank of India on Friday slashed interest rates on fixed deposits across various tenure by up to 0.5 percentage point, a move which will lower returns for savers.   In view of the falling interest rate scenario and surplus liquidity, SBI realigns its interest rate on Term Deposits with effect from August 26, 2019, SBI said in a statement. READ MORE

3:27 PM IST When Prime Minister Narendra Modi was re-elected in May with a sweeping majority, Indian stock markets jumped to all-time highs as investors anticipated big bang pro-business reforms to revive a flagging economy. But sentiment is souring in the country's boardrooms after a much-anticipated budget in July failed to provide any stimulus, and instead hiked taxes on the ultra-rich and on foreign portfolio investors. READ MORE

3:15 PM IST The Enforcement Directorate (ED) is conducting search operation on Jet Airways’s offices and also on it founder Naresh Goyal’s Delhi and Mumbai residences. The action is the part of the probe against Jet Airways under the Foreign Exchange Management Act (Fema), said an ED official privy to the development. READ MORE

3:07 PM IST - Moody's cuts 2019 GDP growth forecast by 60 bps to 6.2%; - Indian economy remains sluggish due to weak hiring

2:54 PM IST

2:51 PM IST

2:46 PM IST

2:38 PM IST -- Have submitted by note on Scrappage Policy to PMO -- Can't say if Scrappage policy will be incentive based

2:34 PM IST

LIVE UPDATES

Sectoral gainers and losers on the NSE


Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex gained 228 points or 0.63 per cent to settle at 36,701 levels while NSE's Nifty50 index ended at 10,829, down 88 points or 0.82 per cent. 
36,701.16

State Bank India cuts interest rates on fixed deposits up to 0.5%

The country's largest lender State Bank of India on Friday slashed interest rates on fixed deposits across various tenure by up to 0.5 percentage point, a move which will lower returns for savers.
 
In view of the falling interest rate scenario and surplus liquidity, SBI realigns its interest rate on Term Deposits with effect from August 26, 2019, SBI said in a statement. READ MORE

India Inc grows impatient as economy slows down and Modi seems distracted

When Prime Minister Narendra Modi was re-elected in May with a sweeping majority, Indian stock markets jumped to all-time highs as investors anticipated big bang pro-business reforms to revive a flagging economy. But sentiment is souring in the country's boardrooms after a much-anticipated budget in July failed to provide any stimulus, and instead hiked taxes on the ultra-rich and on foreign portfolio investors. READ MORE

ED conducts searches on Jet Airways offices, Naresh Goyal residences

The Enforcement Directorate (ED) is conducting search operation on Jet Airways’s offices and also on it founder Naresh Goyal’s Delhi and Mumbai residences. The action is the part of the probe against Jet Airways under the Foreign Exchange Management Act (Fema), said an ED official privy to the development. READ MORE


NEWS ALERT | Moody's cuts India's 2020 GDP growth forecast by 60 bps to 6.7%: CNBC TV18

- Moody's cuts 2019 GDP growth forecast by 60 bps to 6.2%;
- Indian economy remains sluggish due to weak hiring

Rupee up 45 paise from day's low


Dish TV surges


DLF off day's low, up 5%


NEWS ALERT | Financial distress has to be addressed by PMO, Fin Min: Nitin Gadkari

-- Have submitted by note on Scrappage Policy to PMO

-- Can't say if Scrappage policy will be incentive based

NEWS ALERT | Clarity on FPI tax, Direct Tax Code likely today

NEWS ALERT | Wockhardt's Ankleshwar unit gets good manufacturing practice certificate from French regulator: CNBC TV18


STOCK ALERT | Deepak Nitrite promoter buys additional 3 lakh shares via open market on August 21


Reliance Industries gains over 2%, at day's high now


NEWS ALERT | PM sensitive about current (auto slowdown) issue; will announce measures in due course: Nitin Gadkari


NEWS ALERT | PMO to finalise the scrappage policy soon: Nitin Gadkari

-- NITI Aayog, Fin Min, Road Transport Ministry working on the same

NEWS ALERT | Time for auto companies to start looking at alternate technologies: Nitin Gadkari

-- Gadkari says, public transport on electric mobility is our highest priority

-- NITI Aayog does not have the authority to set EV deadlines


NEWS ALERT | Board approves resignation of VK Viswanathan as Chairman & Director: Bosch via BSE filing

--  Board has approved the appointment of Dr. Bernhard Straub, (Non-Executive, Non-Independent Director) as an Additional Director designated as a Chairman of the Board with effect from August 24, 2019



NEWS ALERT | PMO will finalise the scrappage policy: Nitin Gadkari

-- NITI Aayog, Finance ministry, and road ministry working on scrappage policy

NEWS ALERT | Deepak Nitrite promoter buys additional 3 lakh shares via open market on August 2: CNBC TV18


Market check


Market check


KEI soars 9%


ONGC gains 3%


NEWS ALERT | Need to increase domestic coal production: Power Secy to CNBC TV18

-- Power sector needs strong hands to buy stressed assets, says Subhash Chandra Garg

-- Need to resolve the high dependence on imported coal

Falling share prices likely to hit Centre's disinvestment target

The Centre’s disinvestment target of raising Rs 1.05 trillion for 2019-20 may take a hit as the stocks of several public sector undertakings (PSUs) hit all-time lows on Thursday. Some of these are trading at multi-decade lows. The BSE PSU index is down 22 per cent in the trailing 52 weeks and 16 per cent since January. In comparison, the Sensex is down 4.7 per cent in the past 12 months and is still in the green for 2019, with gains of 1.1 per cent.  READ MORE

NEWS ALERT | Maruti to voluntarily recall 40,618 WagonR units manufactured between Nov 2018 and August 2019: CNBC TV18

-- Recall campaign undertaken to rectify potential safety defects

Sobha adds over 4%


Ramp up of biosimilar portfolio may add wings to Biocon, say analysts

The receipt of European Union Good Manufacturing Practice approval for its Malaysian facility is a big positive for Biocon, which produces biologics (drugs manufactured from living organisms/components) in chronic therapies such as diabetes, oncology, and immunology for global markets. The approval indicates that the drug regulator, after its inspections in May 2019, believes that the manufacturing facility is in compliance with the guidelines of GMP for drug substances, drug products, and insulin delivery devices.  READ MORE

Buzzing | Sterlite Tech zooms 13%


Zee Entertainment up 5%


SAIL rises 5%


Unsure of economic revival, says Chris Wood; cuts India exposure

Fading hope of a stimulus by the government amid a tottering economy, sub-par corporate earnings and the sudden focus on Jammu & Kashmir (J&K) that has added an additional negative to the Indian narrative has forced Christopher Wood, global head of equity strategy at Jefferies cut his exposure to India by one percentage point (1ppt) and allocate more to Indonesia. READ MORE
File photo of Christopher Wood, global head of equity strategy at Jefferies

NEWS ALERT | Fin Min not in favour of any big cut in small-savings rate

-- Some quarters in govt feel cut could aid rate transmission

-- Govt opines, low crude oil prices acting as cushion to rupee

(As reported by CNBC TV18)

NEWS ALERT | FATF Asia-Pacific Group places Pakistan on blacklist

-- Pakistan failed 10 out of 11 'effectiveness' parameters
 

MARKET CHECK | Adani Ports at day's high


IDBI Capital on KNR Constructions

Given the strong balance sheet and return ratios, derisked and conservative approach of the management and deleveraging through sale of assets, we expect KNR to trade at premium to peers. We maintain our estimates and target price of Rs 324 on the stock based on SOTP method (15x FY21 EPS for construction business and 0.8x P/B for BOT assets). As the stock has corrected by 10 per cent in the last one month, we have upgraded the same to BUY from ACCUMULATE.

PSU Banks gain


NEWS ALERT | SBI announces a cut in retail-term deposit rates by 10-50 bps & bulk by 30-70 bps effective August 26

--Rates unchanged at 3.5% for up to Rs 1 lakh

-- Bank keeps savings deposit interest rate unchanged at 3% for balances above Rs 1 lakh

Turbulence in broader market continues; Small-cap index hits 32-month low

Midcaps and small-cap stocks continued to suffer with both indices slipping to over two-year low levels on the BSE on Friday amid weak earnings and slowdown concerns. The S&P BSE Smallcap index hit its 32-month low, while the midcap index touched 30-month low in intra-day deal today. The smallcap index touched 11,951 levels, its lowest level since December 29, 2016, while the midcap index hit a low of 12,915, its lowest level since February 1, 2017. READ MORE

Market check | Indices volatile; Sensex slumps again after rising nearly 90 pts intra-day


JSPL surges over 3%


Rupee Check | Re recovers from lows


Future Retail erases morning gains, slumps up to 8% post Amazon deal

Shares of Future Retail slumped as much as 7.94 per cent to Rs 380.60 apiece on the BSE in the morning trade on Friday, a day after the company informed American e-commerce giant Amazon.com is acquiring a 49 per cent stake in a group entity — Future Coupons Ltd. Early in the trade, the stock hit a high of Rs 424.30 against yesterday's close of Rs 413.45. At 10:38 am, the stock was trading at Rs 393.85 apiece on the BSE, down around 5 per cent. READ MORE

Waiting in the wings: Is the time and IPO strategy right for GoAir?

The management of Wadia-group controlled GoAir is in a huddle these days, finalising its plan to raise about Rs 1,500-Rs 2,000 crore through an initial public offer (IPO). While the idea may not be new, for the airline has been toying with it at least since 2015, it has gathered momentum at a time when the Indian aviation sector is dealing with tepid growth in air travel and volatile crude oil prices. READ MORE

Market check


Market check


Anil Agarwal's Twin Star Tech not to bid for RCom assets: Report

Billionaire metal tycoon Anil Agarwal-promoted Twin Star Technologies is learnt to have pulled out as a bidder for telecom assets of debt-ridden Reliance Communications due to unknown reason, a source privy to the development said on Thursday.
 
Twin Star Technologies, a holding company under Agarwal's Volcan Investments Ltd, had earlier shown interest in buying assets of Anil Ambani-led RCom which is going through insolvency proceedings. READ MORE

NEWS ALERT | PMO says, NHAI log jammed with unplanned projects

-- Says, NHAI mandated to pay high land costs

-- Raises issue of rising construction costs

(As reported by CNBC TV18)

NEWS ALERT | NHAI says conversion to AMC not on anvil: sources to CNBC TV18

-- NHAI confirms receipt of letter from PMO on conversion to AMC

-- continue to assess projects for their financial viability

Alert: PMO had written letter to Road Min, reports said

         PMO recommended conversion of NHAI to AMC

         PMO asked about financially viable road projects

Market check


Govt bailouts a moral hazard, says CEA Krishnamurthy Subramanian

Government intervention in the private sector creates a moral hazard, India’s chief economic adviser warned, a statement that could temper expectations of a stimulus for cash-strapped Indian businesses.
 
Speaking in New Delhi on Thursday, Krishnamurthy Subramanian said India has been a market economy since 1991, when it opened up to foreign competition. Sectors in market economies run through the spectrum of a sunrise-to-sunset phase, after which many businesses tend to fade away, he said. READ MORE

MARKET ALERT | Midcap Index slips to the lowest level in 31 months


Sensex pares some losses


Edelweiss Financial slumps over 5%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
YES BANK 59.10 2.80 4.97 3936826
VODAFONE IDEA 5.33 0.07 1.33 1539828
COFFEE DAY ENTER 80.20 3.80 4.97 930196
REL. COMM. 0.98 -0.05 -4.85 816156
DLF 142.65 -1.65 -1.14 786857
» More on Most Active Volume

Nifty IT index gains as Rupee weakens further


Tata Motors gains 0.7%


United Spirits trades higher


PNB Housing Fin sheds 6%


├ŁES Bank gains over 4% on report of the Co eyeing another $1.2 billion equity infusion


Rupee plunges to 72 against US dollar for the first time in 2019

Extending its downfall, the rupee on Friday plunged to 72 against US dollar, down 19 paise against its previous close in the early morning trade. The currency was set for the biggest monthy fall in six years. In August alone, it has plunged 4.6 per cent while so far in 2019, it has lost 3.9 per cent, as per TV reports. The domestic currency on Thursday crashed to an over eight-month low of 71.81, dropping 26 paise as tumbling equities and incessant foreign fund outflows weighed on sentiment. READ MORE

Bajaj Finance sheds over 2%


Hexaware Technologies gains 1%


APL Apollo Tubes slips over 5%


Coffee Day gains 5%


Lupin slips 3%


India Cements sheds over 2%


ICICI Bank declines 3%


IndiGo trades over 2% lower


Oracle Financial Services Software top gainer among the IT pack


Market check


Indian Oil Corp trades lower


Edelweiss Financial Services slips 8%


Glenmark Pharma hits 52-week low


63 Moon Tech trades 10% higher


SpiceJet hits fresh 52-week low


TCS gains 0.9%


Nifty Bank sheds over 400 pts during morning deals


DHFL sheds 4%


Indiabulls Housing Fin dips nearly 2%


YES Bank slips over 1%


DLF slips 4%; hits 52-week low


Future Retail slips over 5%


Market check

-- Sensex trades at 5-month low

-- Nifty50 breaches 10,700 for the first time since Feb 2019

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


Rupee Check | Rupee hits 72/$ mark for the first time in 2019

Source: Bloomberg

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


Rupee opening

Rupee opens lower at 71.92/$ vs Thursday's close of 71.81 against the US dollar

Market at Pre-open


Market at Pre-open


Falling share prices likely to hit Centre's disinvestment target

The Centre’s disinvestment target of raising Rs 1.05 trillion for 2019-20 may take a hit as the stocks of several public sector undertakings (PSUs) hit all-time lows on Thursday. Some of these are trading at multi-decade lows. The BSE PSU index is down 22 per cent in the trailing 52 weeks and 16 per cent since January. 

In comparison, the Sensex is down 4.7 per cent in the past 12 months and is still in the green for 2019, with gains of 1.1 per cent. The target for disinvestment receipts was increased to Rs 1.05 trillion for FY20 in the Budget.  READ MORE

Biscuits to soaps, slowdown pain for FMCG companies comes in small packs

Some of India Inc’s biggest names point to a deeper malaise in the fast-moving consumer goods (FMCG) sector, led by a sustained slowdown in consumption. In the absence of triggers to boost confidence, they say, consumers are dramatically cutting back on spends, hitting sales of entry-level packs.
 
According to the Nielsen data sourced from the industry, the volume growth of categories where the contribution of small packs (Rs 5 and Rs 10 each) is high, such as foods, soaps and toothpastes, has declined year to date compared with the same period last year. READ MORE

IMF raises doubts about India's tax revenue estimates, GDP growth target

The International Monetary Fund (IMF) has posed questions for policymakers in India over steep tax revenue collection estimates for 2019-20 and the bottlenecks in the goods and services tax (GST) regime. Working on the country’s annual economic surveillance or assessment report, the Washington-based multilateral institution has asked India to explain how it is confident of meeting its revenue estimates for the year, given the current state of economic growth and historical buoyancy. READ MORE

Waiting in the wings: Is the time and IPO strategy right for GoAir?

Volatility in the equity market saw the fund mobilisation, during the first half of the calendar year 2019 (H1CY19) via IPO route, hit a four-year low. Analysts have attributed the tepid H1CY19 to the overall market sentiment. Besides, the overall economic scenario has kept companies at bay from raising fresh capital, they say.
 
Given this backdrop, budget carrier GoAir’s plan to raise funds via IPO does raise concerns over its timing, route, and success. That said, even though the public listing has been tepid in 2019, it maybe the best for the aviation sector, experts say. READ MORE
 

Stocks in focus

Future Retail: After almost a year of negotiations, global e-commerce and technology giant Amazon.com is acquiring a 49 per cent stake in Future Coupons, the promoter entity of Future Retail. According to sources in the know, the size of the deal is between Rs 1,500 crore and Rs 2,000 crore. 
 
DHFL: Lenders to the company are set to declare 65 per cent of its debt as unsustainable, said a report by Mint. READ MORE

E-commerce giant Amazon buys 49% stake in Kishore Biyani's Future Coupons

After almost a year of negotiations, global e-commerce and technology giant Amazon.com is acquiring a 49 per cent stake in Future Coupons, the promoter entity of Future Retail. According to sources in the know, the size of the deal is between Rs 1,500 crore and Rs 2,000 crore. Through this transaction, Amazon has managed to acquire around a 3.6 per cent stake in the Future group. READ MORE

Sebi's move to ease norms for FPIs likely to attract West Asian banks

The Securities and Exchange Board of India’s (Sebi’s) move to ease norms for foreign portfolio investors (FPIs) may bring in millions of dollars into India from cash-rich central banks, particularly those from West Asia, as well as attract new funds to the country.
 
On Wednesday, the regulator said central banks — that are not members of the Bank for International Settlements — will be eligible for FPI registration.  READ MORE

NEWS ALERT | Fuel supply to Air India stopped since 4 pm, yesterday: CNBC TV18

-- Supply not resumed yet after oil marketing cos stopped supplying fuel to the national carrier at six airports since 4 pm yesterday

Unprecedented financial sector crisis in 70 years, says NITI Aayog

Government think tank NITI Aayog on Thursday described the current stress in the financial sector as “unprecedented in the last 70 years”, saying nobody is trusting anyone else in the sector. It made a case for extraordinary steps to deal with the crisis that has resulted in an economic slowdown. NITI Aayog Vice-Chairman Rajiv Kumar also said there was no business of the government to hold back payments to companies. READ MORE

NEWS ALERT | YES Bank eyes another $1.2 billion equity infusion: sources to CNBC TV18

-- Board likely to meet soon to approve the plan

-- Engaging with PE, other strategic investors
 

Today's picks: From TCS to Tata Motors, hot stocks to watch on Friday

Bank Nifty
 
Stop long positions at 26,875. Stop short positions at 27,175. Big moves could go till 27,400, 26,650. Trend remains negative but short covering likely at 26,800-26,850.
 
TCS
 
Keep a stop at Rs 2195 and go long. Add to the position between Rs 2230-Rs 2240. Book profits at Rs 2250. READ MORE

Here's a derivative strategy from HDFC Securities for BPCL

Bear Spread strategy on BPCL
 
Buy BPCL August 310 Put at Rs 5.70 & simultaneously sell 300 Put at Rs 2.70
 
Lot Size 1,800
 
Cost of the strategy Rs 3 (Rs 5400 per strategy)
 
Maximum profit Rs 12,600 If BPCL closes at or below 300 on August expiry
 
Break even Point Rs 307 READ MORE

Top stock picks by Anand Rathi: Buy Tech Mahindra, HUL, NIIT Tech

BUY NIFTY
 
TARGET: 10,600
 
STOP-LOSS: 10,864
 
The Nifty closed deep in the negative territory on Thursday, and with that the wave Z/5 seems to have formed. The Index is likely to fall till 10,600 levels in the short term whereas on the upside there exists a resistance at 10,840 levels; hence, till those levels aren’t broken, the overall outlook remains negative, so we recommend selling for the target of 10,600 with a stop loss of 10,864. 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 8:15 am, Brent Crude Futures were at $60.01 per barrel

SGX Nifty

At 8:10 am, the Singaporean Exchange for Nifty Futures was trading 10 points lower at 10,709, indicating a flat to negative start for domestic indices.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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