MARKET WRAP: Sensex rallies 281 points, Nifty ends at 11,076; BPCL gains 6%

Benchmark indices surged in the last hour of Friday's session after trading in a range-bound manner for a major part of the day. The S&P BSE Sensex rallied  281 points or 0.76 per cent to 37,385 while NSE's Nifty50 index reclaimed the crucial 11,000 level to end at 11,076, up 93 points or 0.85 per cent.

Investor sentiment got a major boost as signs of progress in US-China trade talks and aggressive stimulus from the European Central Bank helped to calm fears of a global economic slowdown.

Vedanta (up around 3 per cent) emerged as the top gainer on the S&P BSE Sensex while Bharti Airtel (down over 1 per cent) was the biggest loser. During the day, the 30-share index hit a high and low of 37,413.50 and 37,000.09, respectively. 

In the broader market, the S&P BSE MidCap index ended at 13,666 levels, up 56 points or 0.41 per cent. Meanwhile, the S&P BSE SmallCap index surged 105 points, or 0.82 per cent, to 13,013.05 levels.

The Nifty sectoral indices, except pharma, ended in the green. While Nifty Realty index rose the highest - 1.46 per cent, Nifty Auto index also gained 1.05 per cent. On the other hand, Nifty Pharma lost 0.85 per cent.

Volatility index India VIX dropped around 7 per cent to 13.90 levels. 

On a weekly basis, the S&P BSE Sensex gained 1 per cent while NSE's Nifty added 1.18 per cent. 

BUZZING STOCKS

Shares of Bharat Petroleum Corporation Ltd (BPCL) ended over 6 per cent higher at Rs 409 apiece on the BSE on reports that the government is considering selling its stake in the public sector oil behemoth to a global oil company. READ MORE

Shares of Khadim India Limited surged 15 per cent to Rs 269.70 apiece on the BSE, thus extending its rally for third straight day after the company announced, on Tuesday, the opening up of a subsidiary in Bangladesh. READ MORE

3:45 PM IST Get the full list here

3:43 PM IST Oil marketing companies lead rally (Source: BSE)

3:41 PM IST

3:40 PM IST

3:38 PM IST The S&P BSE Sensex gained 281 points or 0.76 per cent to end at 37,385, while NSE's Nifty50 index ended at 11,076, up 93 points or 0.85 per cent. 

3:24 PM IST

2:57 PM IST (Source: NSE)

2:47 PM IST BPCL moved up nearly 6% after reports suggested that the government may privatise the oil sector company (Image source: BSE)

2:35 PM IST

2:34 PM IST Deutsche Bank AG will benefit the most by far from the European Central Bank’s new tiered deposit rate, JPMorgan Chase & Co. analysts led by Kian Abouhossein said Friday. Germany’s largest lender stands to save roughly 200 million euros ($222 million) in annual interest payments thanks to a new rule that exempts a big chunk of the money it holds at the ECB from the negative rate the central bank charges on deposits. That’s equivalent to 10% of the pretax profit the analysts expect the bank to report in 2020, compared with an average of just 2.5% for the EU banks included in the analysis. (Source: Bloomberg news)

2:29 PM IST

2:15 PM IST

LIVE UPDATES

Weekly stock gainers

Oil stocks among key gainers today

Oil marketing companies lead rally

(Source: BSE)



Index watch


Sensex heat map


CLOSING BELL

The S&P BSE Sensex gained 281 points or 0.76 per cent to end at 37,385, while NSE's Nifty50 index ended at 11,076, up 93 points or 0.85 per cent. 

15 securities hit 52-week high on NSE


MARKET CHECK | Nifty CPSE index jumps over 1%

(Source: NSE)

NEWS IMPACT :: BPCL gains around 6%

BPCL moved up nearly 6% after reports suggested that the government may privatise the oil sector company

(Image source: BSE)

BUZZING STOCK:: DLF surges 4%, at day's high now


Deutsche Bank Gets Biggest Boost From ECB Tiering, says JPMorgan

Deutsche Bank AG will benefit the most by far from the European Central Bank’s new tiered deposit rate, JPMorgan Chase & Co. analysts led by Kian Abouhossein said Friday. Germany’s largest lender stands to save roughly 200 million euros ($222 million) in annual interest payments thanks to a new rule that exempts a big chunk of the money it holds at the ECB from the negative rate the central bank charges on deposits. That’s equivalent to 10% of the pretax profit the analysts expect the bank to report in 2020, compared with an average of just 2.5% for the EU banks included in the analysis.

(Source: Bloomberg news)

Sudden surge in Mangalore Refinery, stock zooms over 8%


Walchandnagar Industries gains for second day after winning order from ISRO


Markets extend gains


Contribution to Sensex


Rupee check


BUZZING STOCK:: KIOCL Ltd


Stocks that hit 52-week high on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
DR LAL PATHLABS 1333.25 1360.00 23.65 1.81
GUJ.ST.PETRONET 225.20 229.90 0.90 0.40
INTERGLOBE AVIAT 1708.60 1735.95 -14.15 -0.82
PRESTIGE ESTATES 309.45 317.05 5.05 1.66
» More on 52 Week High

Mahanagar Gas | Derivatives & Quantitative Outlook by ICICI Securities

Recommendation
 
Buy Mahanagar Gas in range of Rs 835 - Rs 855
 
Target: Rs 985
 
Stop Loss: Rs 770
 
Time frame: Three months
 
Green shoots of recovery of the stock were seen as it has outperformed the market in the broader market weakness seen in the last series. Since July 2019, while the stock is up almost 15 per cent, markets have declined over 10 per cent in the same time frame. Moreover, a sharp increase in delivery volume was observed post its quarterly results. We believe lower levels have been utilised to accumulate the stock. It is likely to exhibit a fresh up trend in the coming weeks.

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
INDIAN ENERGY EX 115.50 -15.30 -11.70 16619674
YES BANK 66.75 -1.20 -1.77 11388188
VODAFONE IDEA 5.37 -0.17 -3.07 9781737
TATA MOTORS 129.30 1.35 1.06 3013043
S A I L 33.05 -0.75 -2.22 2297372
» More on Most Active Volume

Nifty sectoral indices at this hour


IMF says India's growth 'much weaker' than expected; cuts FY20 projection

International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies. "Again, we will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-Bank financial companies and risks to the outlook are tilted to the downside, as we like to say," IMF spokesman Gerry Rice told reporters. READ MORE   


NEWS ALERT | Boeing informs SpiceJet that MAX will be fit to fly by November: CNBC TV18

-- Boeing hopeful of addressing MCAS issues by October

-- SpiceJet only India customer of MAX
 

Khadim India extends rally, stock zooms 50% in three days

Shares of Khadim India Limited surged 18 per cent to Rs 276.10 apiece on the BSE on Friday, thus extending its rally for third straight day after the company announced, on Tuesday, the opening up of a subsidiary in Bangladesh. The stock has rallied 50 per cent in three days. At 10:48 AM, shares of the company were trading 18.4 per cent higher at Rs 277.05 as compared to a flat benchmark S&P BSE Sensex. READ MORE

TECH VIEW :: How to make money in frontline auto stocks

Auto stocks have been in focus off-late in the backdrop of a continuous drop in sales. On its part, the government said it would respond to the demands of the automobile industry, which is facing the worst slump in two decades.
 
Finance Minister Nirmala Sitharaman's assurance to the industry came ahead of the GST Council meeting, slated for September 20. Domestic sales of passenger vehicles fell 31.6 per cent year-on-year to 196,524 units in August, according to the data released by the Society of Indian Automobile Manufacturers (Siam) READ MORE HERE


Motilal Oswal on Quess Corp

We had downgraded QUESS when the impact of its aggressive inorganic foray started reflecting adversely in the financial performance. Nevertheless, the steps the company is taking on improving the margins, cash conversion and turning around the performance of acquisitions have been impressive and should start reflecting in the performance, and especially in valuations after a subdued run.

While we believe in the company’s long-term prospects, more indicators of a combination of sustained 6%+ EBITDA margin and cash conversion are awaited to change our stance on the company. We adopt a DCF methodology to arrive at a price target of Rs 730/share. Maintain Neutral.

Edelweiss on IT sector

Our “Squeeze-up Cycle” analysis shows the mid-cap disruption is underway; hence, we prescribe a “model portfolio” consisting of Infosys, TCS, HCL Tech, Tech M, Larsen & Toubro Infotech (LTI), L&T Technology Services (LTTS), Cyient, Mindtree and eClerx, among others. We are also initiating coverage on Mindtree with a ‘BUY’ rating and 7.5% weighting at a target price of Rs 824.
 
While we recommend the model portfolio, we would like to highlight that TCS, Infosys, LTI and LTTS are priced expensively currently and we advise accumulating these names  post some correction in prices. However, Cyient, Mindtree, eClerx and Persistent are trading at mouth watering valuations and offer an excellent entry point at present

IIFL on Havells India

We hosted Havells India (HAVL) for various investor interactions in India and Japan. Discussions highlight: 1) mixed response of the B2B and B2C businesses in the current uncertain environment, 2) structural strength of the core Havells portfolio and gains of category diversification, 3) conscious effort to improve cost structures, 4) pragmatic approach to streamline systems and business practices in Lloyd for long-term growth and value creation, and 5) investments in technology and R&D to the keep the portfolio relevant for the dynamic and young Indian demography. Though Management remains optimistic, we cut FY20/21ii EPS by 5% each, to discount a much slower pace of recovery in 2HFY20, especially for Lloyd

IIFL on oil & gas sector

We are less hawkish on PSU O&G stocks now as their dividend yields are attractive (5-8%), though earnings growth should remain muted till end-FY22ii. We reiterate BUY on RIL, GGAS and PLNG, where visibility and earnings growth remains high. Possible strategic stake sale of BPCL/GAIL to a non-PSU could alter the sectoral risk-reward decisively. BPCL is the dark horse.

ICICI Securities on SpiceJet

We factor Ind-AS 116 in our analysis of SpiceJet’s (SJet) finances and thus, introduce an ‘on balance sheet’ liability as well as a Right to Use (RoU) asset along with allocation of erstwhile rentals to depreciation and interest expense in the P&L. We now adopt P/E-based valuation methodology (unlike adjusted EV/EBITDAR earlier) in-line with the basic principle of Ind-AS 116.

Maintain our BUY rating on the stock with an unchanged target price of Rs175 based on 10.5x FY21E P/E (7x adjusted EV/EBITDAR earlier). 10.5x multiple is post giving 30% discount to 15x to adjust for no taxes paid by SpiceJet.

Can banks survive negative rates, instability in global financial system?

The declining economic outlook and increasing political pressure are pushing central banks into more aggressive unconventional monetary policies. Simultaneously, fears are growing that such steps, especially negative interest rates, actually threaten the stability of the financial system. They risk setting off dangerous feedback loops in credit markets and the real economy, where the second and third-order effects are difficult to anticipate or control. READ MORE

Benign inflation reinforces case for further rate cuts: Kotak Securities

Moderating core inflation should offset the impact of higher food prices, keeping the headline number in check. After a dismal growth performance in 1QFY20 and with inflation staying benign, MPC’s focus will remain on addressing the weakening growth trajectory. We expect the MPC to cut the repo rate by up to 75 bps through the rest of FY2020—including a cut of around 40 bps in the October policy—with focus remaining on transmission.

NEWS ALERT | YES Bank promoters allege unabated speculation in the stock by short sellers: CNBC TV18

-- Promoters seek  an investigation by BSE & NSE

-- YES Bank promoters say negaitve messages being circulated via whatsapp


Auto stocks gain


MARKET CHECK


NEWS ALERT | J.Kumar Infra gets letter of acceptance from Mumbai Metro for project worth Rs 1,998 cr: BSE filing


Banks, NBFCs slip up to 5% after Altico Capital misses interest payment

Shares of banks and non-banking financial companies (NBFCs) dropped up to 5 per cent in the morning deals on Friday, a day after Altico Capital India, a lender to real estate companies, said it has defaulted on interest payments to Mashreq Bank of Dubai. An interest payment of Rs 19.97 crore was due on September 12, according to a regulatory filing with the BSE. This payment is now in default. The principal amount for the external commercial borrowing on which Altico Capital has defaulted stands at Rs 340 crore, the filing said. READ MORE

Nomura on policy rates

We expect inflation to evolve in line with the RBI’s projections. While we believe Q2 marked the trough in the growth rate cycle, the RBI’s FY20 GDP growth projection still appears too optimistic (RBI: 6.9%; Nomura: 6.0%) and is widely expected (by us as well as consensus) to be downgraded at the 4 October policy meeting. Hence, we expect the RBI to deliver a cumulative 40bp rate cut in Q4, most of which will likely be frontloaded in October itself

COMMENT :: BofAML on RBI policy outlook

·        August inflation posted a lower than expected 3.2%. Core is a reasonable 4%. We track 3.6% in September on higher agflation.
 
·        RBI MPC may cut by 35bp on Oct 4 & 15bp by Dec, pause, and cut 40bp to 4.5% repo rate by Sept 2020, if global growth weakens.
 
·        We see case for 50bp RBI cut on Oct 4, on 1. weak growth; and 2. time running out for lending rate cuts as busy season nears.

Gravita India climbs 5% as Ghana subsidiary enhances production capacity

Gravita India shares zoomed 5 per cent to Rs 47.50 on the BSE on Friday after the company announced its Ghana subsidiary had enhanced the production capacity. At 10:11 AM, the stock was trading 2.43 per cent higher at Rs 46.30 as compared to a 0.2 per cent dip in the benchmark S&P BSE Sensex. A total of 51,000 shares had changed hands on the BSE and National Stock Exchange (NSE) by the time this report was filed. READ MORE

NEWS ALERT | Bank Of Baroda to consider raising capital via bonds on Sept 18: BSE filing


Oberoi Realty surges 6%


Maruti, Bajaj Auto, M&M: How to make money in frontline auto stocks

Auto stocks have been in focus off-late in the backdrop of a continuous drop in sales. On its part, the government said it would respond to the demands of the automobile industry, which is facing the worst slump in two decades. Finance Minister Nirmala Sitharaman's assurance to the industry came ahead of the GST Council meeting, slated for September 20. READ MORE

Sensex turns flat


Wockhardt down over 4%


Indiabulls Housing Finance dips over 2%


PSU Banks trade under pressure


Nifty IT index trades higher


Motherson Sumi up over 3%


Titan trades over 1 per cent higher


HUL trades higher on report it's leading the race to pick up Nagpur-based Dinshaw’s Dairy Foods


YES Bank dips 3%


Maruti Suzuki India climbs over 1%, top gainer in Sensex


Top 5 losers on the BSE at this hour


MARKET CHECK | Top gainers on the BSE at this hour


BUZZING STOCK | Gravita India jumps 5% as subsidiary enhances production capacity


Sectoral indices on the NSE at this hour


FIRST TRADE | Losers and gainers on the S&P BSE Sensex


OPENING BELL

Sensex trades 40 pts lower, Nifty hovers around 10,975; banks slip

Stocks to watch

Auto stocks: Key states have expressed reservations on a cut in the goods and services tax (GST) rate for the auto sector because of the grim revenue situation, after the fitment panel refrained from recommending any such reduction. READ MORE
.
HUL: Hindustan Unilever (HUL), the country’s largest consumer goods company, is leading the race to pick up Nagpur-based Dinshaw’s Dairy Foods, which has been on the block since April. READ MORE

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


Market at pre-open


Rupee opening

Rupee opens stronger at 70.96/$ vs Thursday's close of 71.13 against the US dollar

Commodity outlook by Tradebulls Securities

Buy Zinc
 
Target: Rs 192
 
Stop loss: Rs 184
 
After consolidating and taking support at Rs 180.60, zinc has bounced strongly till Rs 186. The short-term moving average of 13 and 20 has given buy signal crossover and RSI_14 is trading above 50 giving extra confirmation of buy signal. It has minor resistance around Rs 190 and if it manages to breach that level, we can see it going till Rs 192 so buy at current level with an expected target of Rs 192 and stop loss of Rs 184. READ MORE

Derivative strategy from HDFC Securities

Buy Britannia September Future at Rs 2,673
Stop Loss of Rs 2,630
Target: Rs 2,750
Lot Size: 200
 
Rationale:
 
-- Accumulation of Long build up is seen in the Britannia Futures’ in the September series till now, where we have rise in open interest (OI) with price consolidation;
-- Stock has formed bullish hammer pattern on the weekly charts for the week ending August 23;
-- It is consolidating near 50-day simple moving average (SMA) after sharp rise during the fag-end of August; &
-- Oscillators and Momentum indicators like RSI and MACD showing strength in the stock on the daily and weekly charts.

Nifty Outlook and top trading ideas by CapitalVia Global Research Limited

Buy HDFC Bank Ltd above Rs 2,290
Target: Rs 2,350
Stop loss: Rs 2,240
 
The stock is showing resistance breakout from the levels of 2,290 and as is making resistance breakout in daily charts, stock is trading near its 200-day EMA and breakout will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 2,290 for the target of Rs 2,350, keeping a stop loss at Rs 2,240 on closing basis. READ MORE

Bulk deals on BSE as on Thursday

Deal Date Security Code Security Name Client Name Deal Type * Quantity Price **
12/09/2019 539447 BEARDSELL ANUMOLU ANUMOLU BHARAT S 180,705 12.00
12/09/2019 532430 BFUTILITIE GAGANDEEP CREDIT CAPITAL PRIVATE LIMITED B 209,651 174.50
12/09/2019 532430 BFUTILITIE ANUJ ANANTRAI SHETH S 209,651 174.50
12/09/2019 540064 FRETAIL BENNETT COLEMAN & CO LTD B 7,388,852 406.00
12/09/2019 505212 JAINEX BHARATI BAFNA B 7,500 43.10
12/09/2019 505212 JAINEX KUNAL BAFNA B 19,700 43.25
12/09/2019 505212 JAINEX PRAVIN CHIMANLAL VORA S 27,200 43.21
12/09/2019 540796 RATNABHUMI INDIA FINSEC LIMITED B 70,000 99.78
12/09/2019 534734 RMCHEM TAIYAB HAIDERALI NOORANI B 2,770,270 .74
12/09/2019 534734 RMCHEM SATISH ARVIND PATEL S 1,860,865 .74
Click here for the full list

Bulk deals on NSE as on Thursday

Date Symbol Security Name Client Name Buy / Sell Quantity Traded Trade Price /
Wght. Avg. 
Price
12-Sep-2019 APOLLOHOSP Apollo Hospitals Ltd ABU DHABI INVESTMENT AUTHORITY - BEHAVE BUY 9,65,000 1482.50
12-Sep-2019 APOLLOHOSP Apollo Hospitals Ltd SOCIETE GENERALE BUY 13,58,000 1482.50
12-Sep-2019 APOLLOHOSP Apollo Hospitals Ltd SUNEETA REDDY SELL 50,00,000 1482.50
12-Sep-2019 BCP B.C. Power Controls Ltd SILVERTOSS SHOPPERS PRIVATE LIMITED BUY 64,699 9.90
12-Sep-2019 BCP B.C. Power Controls Ltd SILVERTOSS SHOPPERS PRIVATE LIMITED SELL 3,33,932 10.00
12-Sep-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 20,69,128 51.18
12-Sep-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 20,69,128 51.09
12-Sep-2019 GOACARBON Goa Carbon Ltd ELIXIR WEALTH MANAGEMENT PRIVATE LIMITED BUY 46,716 341.38
12-Sep-2019 GOACARBON Goa Carbon Ltd ELIXIR WEALTH MANAGEMENT PRIVATE LIMITED SELL 46,936 341.92
12-Sep-2019 GOACARBON Goa Carbon Ltd N.K.SECURITIES BUY 59,984 341.44
Click here for the full list

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


Rupee check

Source: Bloomberg

Oil check

-- Oil prices were softer as a meeting of the OPEC+ alliance yielded no decision on deepening crude supply cuts. Brent crude futures fell 0.2 per cent to $60.29 a barrel while U.S. West Texas Intermediate (WTI) crude lost 0.2 per cent to $54.96.

-- At 8:25 am, Brent Crude Futures were at $60.21 per barrel.

SGX Nifty

At 8:22 am, SGX Nifty was trading 2 points lower at 10,990 level.

US Market check


Asian Markets check


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