Equities continued to slide on Thursday due to the absence of any positive triggers.
The S&P BSE Sensex lost 470 points or 1.29 per cent to settle at 36,093.47, with YES Bank (down 16 per cent) being the biggest laggard and Tata Motors (up 2 per cent) the top gainer. During the session, the index hit an intra-day high and low of 36,613.93 and 35,987.80, respectively. Only 4 out of 30 constituents ended in the green while the rest 26 declined.
Reliance Industries (RIL), ICICI Bank, TCS, HDFC and Infosys contributed the most to the Sensex's fall.
In the broader market, the S&P BSE MidCap index dipped 154 points or 1.15 per cent to 13,285 levels, and the S&P BSE SmallCap index closed at 12,703.27, down 191 points or 1.48 per cent.
ON NSE, the broader Nifty50 index settled at 10,705, down 136 points or 1.25 per cent.
Volatility index India VIX surged nearly 2 per cent to settle at 15.60 levels.
Sectorally, all the sectoral indices on the NSE ended in the red. Media stocks bled the most - 4.41 per cent to 1,786 levels, followed by PSU banks and metal stocks.
Asian shares turned lower on Thursday after the US Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.36 per cent. Hong Kong shares shed 0.96 per cent, but Japan’s Nikkei rose 1.01 per cent.
US stock futures fell 0.23 per cent in Asia on Thursday. The S&P 500 reversed losses to end 0.03% higher after Powell said he did not see an imminent recession or think the Fed will adopt negative rates.
SECTOR WATCH | All sectoral indices on the NSE decline
MARKET AT CLOSE | Only 4 stocks in the Sensex pack advance
The S&P BSE Sensex lost 470 points or 1.29 per cent to end at 36,093.47 while NSE's Nifty ended at 10,705, up 136 points or 1.25 per cent.
YES BANK hits 6-year low
- The stock traded at its lowest level since September 5, 2013, when it touched Rs 49.50 in intra-day trade
MARKET CHECK | HDFC Bank firm after stock trades ex-date for stock split
IIFL Wealth hits 5% upper circuit; IIFL Securities to make debut tomorrow
Shares of IIFL Wealth Management, the demerged entity of IIFL Holding, were locked in the upper circuit band of 5 per cent at Rs 1,271 on debut on the National Stock Exchange (NSE) on Thursday. On the BSE too, the stock was frozen at 5 per cent upper circuit at Rs 1,260, after opening at Rs 1,200. Till 02:18 pm, a combined 1.8 million equity shares changed hands and there were pending buy orders for 1.9 million shares on the NSE and BSE. READ MORE
NEWS ALERT | Reliance Nippon AMC promoter releases pledge on 4.3% stake on Sept 10: CNBC TV18
MARKET ALERT | Nifty50 below 10,700 for the first time since Aug 23
Endurance Tech under pressure
Wockhardt at day's low. down over 4%
NEWS ALERT | IDBI Bank appoints Samuel Joseph as Deputy MD For 3 years with immediate effect: BSE Filing
The slowdown is for real and will not go away quickly: JSW Energy
After a 1.6 per cent decline in India's power demand in August, Prashant Jain, joint managing director and chief executive officer (CEO), JSW Energy, said demand in September so far has been weak. In an interview with Amritha Pillay, Jain said he was hopeful the annual power demand growth would be at 4 to 5 per cent fuelled by rural electrification, urbanisation and low-cost housing. READ FULL INTERVIEW HERE
Prashant Jain, Joint managing director and chief executive officer, JSW Energy
Asian shares extended declines on Thursday after the U.S. Federal Reserve signaled a higher bar to further easings, while the Bank of Japan also held off from offering more stimulus as some had hoped.
The Fed cut rates for the second time this year as global growth risks intensified, forcing policymakers around the world to step up efforts to stimulate their economies. Earlier in the day, the BOJ kept policy steady as expected, though there were some expectations the Japanese central bank would ramp up its already massive stimulus.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6 per cent. Hong Kong shares shed 1.36 per cent, but Japan’s Nikkei rose 0.43 per cent.
The pan-region Euro Stoxx 50 futures were down 0.06 per cent, German DAX futures off 0.1 per cent, and FTSE futures lost 0.27 per cent.
Sharp surge in Dynamatic Tech
Sharekhan on HCL Technologies
Target Price: Rs 1,250
HCL Tech is expected to deliver strong organic growth among large peers in FY2020E, led by robust organic growth (14% y-o-y CC) in Q1FY2020, large addressable opportunity in IMS, and strong growth in Engineering R&D Services (ERS) business. Further, investments in digital technology would help the company build digital competencies, which would provide a sustainable growth momentum going forward. However, we believe aggressive capital allocation towards the product business remains a risk to its business model and integration of recent acquisitions remains the primary focus area. At the CMP, the stock trades at 13x/12x its FY2020E/FY2021E earnings estimates, which looks attractive and is at a discount to peers despite better revenue growth. We maintain our Buy rating on the stock with an unchanged PT of Rs 1,250.
NEWS ALERT | Promoters of JSW Steel release pledge on 5 crore (2.1% equity) shares from Sept 12-13: CNBC TV18
NEWS ALERT | Will launch first car based on new EV technology - the Ziptron, in Q4FY20: Tata Motors
(reports CNBC TV18)
Zee Entertainment tanks 8% as Chandra asked not to sell unpledged shares
Shares of Zee Entertainment Enterprises (ZEE) slipped 8 per cent to Rs 307 on the BSE on Thursday after promoter Subhash Chandra was asked by a court to not sell his unpledged stake in the company till next month. The stock hit one month low and was trading close to its 52-week low of Rs 289 touched on January 25 this year. READ MORE
Motilal Oswal's PE arm exits Kolte Patil Developers with 23 % IRR
Motilal Oswal Real Estate (MORE), the real estate private equity arm of Motilal Oswal Group, has exited from an investment in Kolte Patil Developers.
MORE had invested Rs 58 crore through its funds IREF II and IREF III in December 2015 by taking an equity stake in a project and has now exited with an IRR of more than 23 per cent. READ MORE
NEWS ALERT | CII submits suggestions to Govt on ban of single-use plastics
-- Ban has created existential issue for multiple sectors
-- Banning sachets would lead to unavailability of various daily-use products
-- R&D costs and capex needed would make products expensive for consumers
(Via CNBC TV18)
NEWS ALERT | In dialogue with consortium of lenders, remain focused on the repayment process: Essel Group to CNBC TV18
-- Decisions taken so far have been in the interest of the lenders
Alert: CNBC TV18 earlier reported Zee Group met MF lenders yesterday to seek an extension to the standstill agreement
NEWS ALERT | Zee Group met MF lenders yesterday, sought an extension to the standstill agreement: sources to CNBC TV18
-- No decision yet on granting extension to Zee for repayment to MFs
Alert: Agreement was to end on September 30
: Zee has paid 50% of dues
Market check | Sensex dips over 400 pts
NEWS ALERT | Finance Secretary to hold meeting today w.r.t follow-up on RBI rate cut: sources to CNBC TV18
-- To discuss introduction of repo-rate linked loan products
-- Mandated release of security documents within 15 days of loan closure
-- Monitor purchase of pooled assets NBFCs/HFCs up to Rs 1 lakh cr
Shares of housing finance companies were under pressure on Thursday, with PNB Housing Finance hitting a fresh all-time low, while LIC Housing Finance, down 2 per cent to Rs 383, on the BSE was trading near its five-year low level on growth and assets quality concerns. PNB Housing Finance also fell 2 per cent to Rs 601, and was trading at its lowest level since listing on November 2016. READ MORE
NEWS ALERT | August Aviation Data
-- Air Passenger Traffic grew at 3.87% MoM, 3.24% YoY
-- IndiGo's market share at 47% (down from 47.8% in July)
-- SpiceJet's market share flat at 15.5% MoM
-- GoAir's market share at 11.8% from 11.1% in July
-- Air India's market share at 12.8%, up from 12.4% in July
Market check | Sharp decline in Sensex
HDFC Securities on Dishman Carbogen Amcis
We remain constructive on DCAL owing to strong visibility on its order book, 15+ late phase 3 molecules, expanded development capacity, ability to work on new molecules like ADCs, and favorable currency. Improvement in BS driven by reduced debt and working capital release would be one of the important parameters to drive re-rating of the stock. At CMP, the stock is trading at 10.1/7.8 FY19/20E, a ~60% discount to peers like Divi’s Labs. Maintain BUY with a TP of Rs 350 (15x FY21E EPS).
Contributions to S&P BSE Sensex's fall today
Rupee Check | Currency at highest level in a week
Bond traders on edge over possible stimulus; seek assurance on fiscal goals
Bond yields have risen in five of the past seven weeks as traders continue to fear that the government, which has avoided big-bang spending, may still resort to big giveaways. And this week’s oil shock has had investors looking for assurances that the administration will stick to a goal of narrowing its fiscal deficit.
Benchmark yields jumped the most in 16 months in August. Flip-flops over the government’s plans for a $10 billion overseas debt sale added to the pain as the issuance was meant to shift part of a record Rs 7.1 lakh crore of planned borrowings abroad. READ MORE
BUZZING STOCK:: Sudden surge in HEG
Nifty Pharma index off day's high
Rate cut, infusion of liquidity will end credit crisis: Edelweiss chairman
One of India’s top shadow financiers by assets is betting that central bank easing will bring an end to the nation’s prolonged credit crisis, even as fresh strains in the sector emerged this week.
“Interest-rate cuts and infusion of liquidity by the RBI will give a boost to the bond markets and aid the credit market to return to normalcy by December,” Rashesh Shah, chairman of Edelweiss Financial Services Ltd., said in an interview from the company’s steel-and-glass headquarters in Mumbai. “Steps taken by the government will also help alleviate concerns around non-bank lenders.” READ FULL REPORT HERE
YES Bank trades lower for fourth straight day, stock tumbles 6%
Shares of YES Bank continued to reel under pressure, cracking up to 6 per cent to Rs 60 per share, on the BSE in the morning deals on Thursday, extending its 7 per cent fall in past three days after CARE Ratings downgraded ratings of non-convertible debentures (NCDs) of Morgan Credits Private Limited (MCPL), one of the promoter entities of the private sector lender. The stock hit a multi-year low of Rs 53 on August 22, 2019 in the intra-day trade.
MCPL, which holds 3.03 per cent stake in the private lender, was downgraded to ‘BBB-’ from ‘A-’ due to fall in the stock price of the underlying shares of YES Bank held by it. READ MORE
Steel stocks dip after Icra predicts consumption growth to slow in FY20
Steel stocks came under pressure on Thursday after rating agency Icra said domestic steel consumption growth may decelerate to around 5-6 per cent this fiscal, from 7.9 per cent in FY2019, "on the back of an unprecedented slowdown in economic activity". The country’s GDP growth tapered to 5 per cent in Q1 FY2020. As a result, margin outlook for steelmakers has weakened in Q2 due to a sharp fall in steel prices and firm raw material costs, Icra said in its report. READ MORE
NEWS ALERT | NCLT Ahmedabad approves merger of Gruh Finance with Bandhan Bank: BSE Filing
Shares of paper manufacturers and jute product companies extended their gains and were trading higher by up to 10 per cent on the BSE in the early morning deals on Thursday on buzz around total plastic ban. Malu Paper Mills, Ludlow Jute & Specialities, Orient Paper & Industries, Emami Paper Mills, West Coast Paper, Star Paper Mills, JK Paper, Seshasayee Paper & Boards and Cheviot Company were up in the range of 4 per cent to 10 per cent on the BSE. READ MORE
NEWS ALERT | Board of IDBI Bank approves preferential issue of Rs 4,557 cr to Govt, Rs 4,743 cr to LIC: BSE filing
MARKET CHECK | Sectoral indices on NSE
ASG Eye Hospitals raises Rs 308 cr from Foundation Holdings
The 14-year-old company runs 33 hospitals in 13 states in the country. Details on the valuation were not immediately clear.
The healthcare and education-focused investor Foundation Holdings and consumer-businesses focused Symphony International "have entered into a transaction with the company and its promoters" for the investment, an official statement said. READ MORE
Lupin sheds nearly 3% as as USFDA issues warning letter for Mandideep (Unit-1) facility
Nalco gains over 4% after it declares 115% dividend payout
Shares of National Aluminium Company (Nalco) rallied as much as 4.26 per cent to Rs 46.40 apiece in the opening deals on Thursday after the company announced a record 115 per cent dividend payout amounting to Rs 1,072.73 crore for 2018-19.
The aluminium major on Wednesday declared its highest ever dividend on the occasion of the 38th Annual General Meeting (AGM) of the Navaratna PSU and said it has reflected continuation of its bull run. READ MORE
NEWS ALERT | GDP for FY20 could be around 6%: JP Morgan to CNBC TV18
CG Power case: Look out circular issued against ex-chairman Gautam Thapar
“We are looking at the gaps in the company’s books. The circular has been issued as a pre-emptive measure,” the senior official added.
The circular has been issued at the behest of the Ministry of Corporate Affairs (MCA), which is currently inspecting the books of the company. The case could be referred to the Serious Fraud Investigation Office (SFIO) if the preliminary inspection report points to a fraud and gaping holes in the books of the firm. READ MORE
Nifty Auto index trades higher in a weak market
YES Bank extends loss
Sobha declines over 2%
Indiabulls Integrated Services gains in a weak market
RITES Ltd trades higher on Rs 160-cr contract win from Sri Lankan government
DHFL gains over 5%
Godrej Consumer Products gains over 2%
NEWS ALERT | NMDC cuts lumps and fines price by Rs 200/tonne: sources to CNBC TV18
-- Lumps prices now at Rs 2,700/tonne
-- Fines price now at Rs 2,460/tonne
NEWS ALERT | Axis Bank cuts lending rate by 10 bps: CNBC TV18
REC continues to trade lower
Metals start-off weak
Nalco gains in early trade
Den Networks slips over 1.5%
Momentum picks by ICICI Securities
Tata Motors trades nearly a per cent higher
Market check | Nifty50 trades below 10,800
NTPC slips in the early trade
Vedanta trades flat
SBI declines over 1%
Market check | Sensex slides
YES Bank trades 2% lower
Prestige Estate Projects dips 2%
Vodafone Idea jumps over 11% in the Opening trade
Zee Entertainment dips 2%
Sectoral trends at NSE during Opening trade
Top gainers and losers on S&P BSE Sensex during Opening trade
Market at Open
Market at Open
NEWS ALERT | FM Nirmala Sitharaman to meet chiefs of Public Sector Bank today at 5 pm: Govt sources
-- To brief media at 7 pm.
Top gainers and losers on S&P BSE Sensex during Pre-open
Market at Pre-open
Rupee opens lower at 71.35/$ vs Wednesday's close of 71.23 against the US dollar
Market at Pre-open
Unsold inventory for top real estate developers scales new high in FY19
The country’s top real estate developers continue to add unsold inventory at a steady pace, leading to a deterioration in the industry’s financial ratios. The top 25 developers, whose audited finances for FY19 are available, were sitting on unsold inventory worth nearly Rs 1.4 trillion at the end of March this year, up 19 per cent year-on-year (YoY). READ MORE
Start-up sectors that have the highest probability of receiving funding
PROBABILITY OF FUNDING
Sectors such as consumer internet and enterprise applications have seen the most number of start-ups, but only 10-13 per cent of them got funded. Chances of getting funded improved if you were doing a start-up in the areas of artificial intelligence, life sciences, Internet of Things, and enterprise infrastructure, shows this data.
Stocks to watch: Axis Bank, IIFL Wealth, Zee Group, Indian Bank, steel cos
Here's a look at the top stocks that may remain in focus today -
Axis Bank: The private sector lender is likely to launch qualified institutional placement (QIP) process soon to raise Rs 14,000 crore.
Indian Bank, Allahabad Bank: Government-owned Indian Bank on Wednesday got a nod from its board to raise Rs 5,000-crore capital from the government through preferential allotment. The board also approved the proposed merger with Allahabad Bank. READ MORE
RCom subsidiary files bankruptcy protection without prior consent
Debt-ridden telecom firm Reliance Communications on Wednesday said its subsidiary GCX filed for bankruptcy protection in the US without any prior consent of the company.
The B2B arm of RCom, GCX has voluntarily filed for bankruptcy protection under chapter 11 of the United States bankruptcy code last week, as per a regulatory filing. READ MORE
FMCG stares at worst slump in revenue growth in 15 years: Report
According to a recent report by Credit Suisse, the slowdown had been brewing since 2016 but was intensified further by several disruptions in the past two years including demonetisation. “In our assessment, the slowdown started in 2016. It was camouflaged first by trade disruptions in 2017 caused by demonetisation and the goods and services tax (GST), and then by a low base effect, leading to high growth in FY19,” it added. The revenue growth of FMCG sector in the country grew at a compound annual growth rate (CAGR) of around 7 per cent, it added. READ FULL REPORT HERE
HDFC Property Fund, Motilal Oswal Real Estate look to buy ready homes
HDFC Property Fund and Motilal Oswal Real Estate, which are raising new real estate funds, are looking at buying apartments and projects at lower valuations as property developers struggle with lower sales and liquidity. HDFC Property Fund is raising a $500-million (Rs 3,600 crore) private equity (PE) fund. READ MORE
Don't fall for GCPL's valuation, wait for good growth outlook: Analysts
Cheap valuations may not always be the best investment argument and a buying point for a stock unless the future growth outlook of the company is reasonably good. That’s what the current risk-reward matrix of Godrej Consumer Products’ (GCPL) stock suggests.
Nitin Gupta, analyst at SBICAP Securities believes that the external environment is challenging for GCPL’s domestic business, while the company’s key international markets are also facing pressure. “Unless the overall growth picks up structurally, the stock may not get higher valuations,” Gupta says. READ MORE HERE
Icra sees FY20 steel demand growth shrinking to 5-6% from 7.9% in FY19
Domestic steel consumption growth is expected to decelerate to around 5-6 per cent this fiscal, from 7.9 per cent in FY2019, on the back of an unprecedented slowdown in economic activity, said Icra in its report today.
The country’s GDP growth tapered to 5.0 per cent in Q1 FY2020. READ MORE
FPI inflows: Emerging markets yet to gain from global liquidity
The worst quarter for foreign outflows in 20 years marks a divergence between foreign investor activity and liquidity in global markets, generally seen fueling the post-crisis inflows into emerging markets. An analysis of indices tracking liquidity in major markets shows conditions remain benign. Both the Bloomberg Euro Area Financial Conditions Index and the Bloomberg U. READ MORE
US Fed cuts interest rate for the second time in a row: Top 4 highlights
The US Federal Open Market Committee (FOMC) of the Federal Reserve on Wednesday delivered second rate cut in a row, slashing interest rates by 25 basis points on the back of global uncertainties. The rate now stands in the range of 1.75-2 per cent.
While US consumers continued to make big purchases owing to an uptick in wages, unresolved trade negotiations between the United States and China have dampened business investment and slowed the manufacturing sector, Fed chairman Jerome Powell said during the press conference. READ HIGHLIGHTS HERE
US Fed chief Jerome Powell
India underweight stance pays off for ace investor Shankar Sharma
While not exactly a doomsday advocate, Sharma has been perceived as a perennial bear with regard to his views on Indian equities. His decision to remain underweight on the country for many months now seems to have been proven right, though. India’s benchmark indices are up 1.3 per cent in the year-to-date, but have slid 7.4 per cent since July 5 in rupee terms.
“We have avoided the bullish noise coming out of India. Back in April, I had tweeted that this market, irrespective of the election results, was toast. There was adequate data to suggest you were heading for a serious downturn,” says Sharma. READ MORE HERE
Shankar Sharma, vice-chairman and joint managing director at First Global
NEWS ALERT | Bank of Japan keeps rates unchanged at -0.1%: CNBC TV18
-- BoJ leaves forward guidance for policy rates unchanged. To review the economy, prices at the next meeting
Nifty outlook and trading ideas by CapitalVia: Buy HUL, Nestle India
Markets consolidated in narrow range, but witnessed some short covering on Wednesday as Brent crude prices settled around $64 as currency traded positively. Reality, metal, PSU bank sector witnessed buying which led Nifty to close at 10,840.65 adding 23.05 points. Banknifty closed at 27,172.70 gaining 40.95 points.
As per option data for the next week, handful of put writing was seen on lower strikes ranging from 10,650 to 10,800 which will act as support for the weekly expiry. We can witness resistance on higher end at 11,000 and 11,100 as highest OI stand on these strikes. We should keep a positive bias on the Nifty and should keep eye on 10,750 as it will act as major support for Nifty. READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
-- Oil prices edged higher in early Asian trade on Thursday after days of turbulence, with markets soothed by Saudi Arabia’s pledge to restore full production by end-September at facilities knocked out in drone and missile attacks last weekend.
-- At 8:12 am, Brent Crude Futures were at $62.72 per barrel
At 8:10 am, SGX Nifty as trading 11.5 points lower at 10,844.5 levels.