Benchmark indices ended Wednesday's range-bound session in a positive territory; however, they pared their intra-day gains in the fag-end of the session. Although, decline in oil prices did give some impetus to the bulls, the broader market sentiment remained subdued after reports said the goods and services tax (GST) Council is unlikely to approve lowering the tax for auto sector. READ MORE
The S&P BSE Sensex ended at 36,564, up 83 points or 0.23 per cent, with Tata Steel (up 4 per cent) being the top gainer and ONGC (down 2 per cent) the worst performer. On NSE, the Nifty50 index ended at 10,841, up 23 points or 0.21 per cent. Out of 50 constituents, 33 advanced while 17 declined.
Volatility index India VIX declined over 5 per cent to 15.17 levels.
In the broader market, the S&P BSE MidCap ended 52 points or 0.39 per cent higher at 13,439.30 levels while the S&P BSE SmallCap index settled at 12,894.23, up 39 points or 0.30 per cent.
Market breadth remained in favour of advances as out of 2,642 companies traded on BSE, 1,248 gained and 1,236 slipped while 158 scrips remained unchanged.
Among the sectoral indices on NSE, realty stocks advanced the most, followed by metal and PSU bank stocks. On the contrary, media counters slipped the most in trade.
Tobacco stocks rallied in the trade after Cabinet announced ban on e-cigarettes. Godfrey Phillips ended 5 per cent higher at Rs 989 apiece on the NSE while ITC added around 1 per cent to settle at 238.90.
Hotel stocks, too, gained after reports said the Goods and Services Tax (GST) Council could cut rates for five-star hotels to provide relief to the hospitality industry. The Council is scheduled to meet on Friday, September 20.
Oil prices steadied on Wednesday as Middle East events kept investors nervous, while caution ahead of an expected US interest rate cut kept wider financial markets in tight ranges. European stocks were subdued. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.08 per cent while Japan’s Nikkei dipped 0.18 per cent after 10 straight days of gains and China’s blue-chip share index rose 0.49 per cent.
Wall Street futures pointed to a softer opening.
(With inputs from Reuters)
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The S&P BSE Sensex ended at 36,563.88, up 83 points or 0.23 per cent while NSE's Nifty50 index gained 23 points or 0.21 per cent to close at 10,841.
3:17 PM IST -- Bharti Airtel loses 25.8 lakh users vs loss of 29,883 users (MoM)
-- Reliance Jio adds 85.4 lakh users vs 81.8 lakh users (Mom)
3:13 PM IST
3:09 PM IST
INDIAN WOOD PROD
3:07 PM IST -- Production, manfacturing, import, export, transport, sales, distribution and advertisments of e-cigarettes are banned: Sitharaman
NEWS ALERT | Cabinet has approved banning e-cigarettes: Sitharaman
-- Production, manfacturing, import, export, transport, sales, distribution and advertisments of e-cigarettes are banned: Sitharaman
Nifty PSU Bank index trades higher
Godfrey Phillips India up over 7%
Balmer Lawrie slips 6%
-- The company's board has deferred recommendation of bonus shares.
NEWS ALERT | UK inflation rose 1.7% in Aug; lowest since 2016: Reuters
-- Consumer inflation rose at an annual rate of 1.7% in August after a 2.1% increase in July, Reuters reported.
-- Consumer prices in Britain rose last month at the slowest rate since December 2016, a pre-Brexit boost to the spending power of households who are also seeing the fastest wage growth in 11 years.
-- It was the biggest drop in the annual rate of inflation from one month to another since late 2014.
NEWS ALERT | Endurance Tech begins commercial production at new plant in Kolar, Karnataka: BSE Filing
Avenue Supermarts regains Rs 1-trillion market cap, stock nears record high
In the past 10 days, Avenue Supermarts' stock price has surged 9 per cent after rating agency CRISIL assigned CRISIL AA+/stable rating to the company's Rs 200 crore non-convertible debentures and reaffirmed its long-term bank facilities. In comparison, the benchmark S&P BSE Sensex remained flat during the same period. READ MORE
SAT gives four weeks to NSE, ex-officials to file reply in co-location case
Securities Appellate Tribunal (SAT) on Wednesday asked NSE and its ex-officials, including the former CEO Chitra Ramkrishna, to file their rejoinders within four weeks in their plea against Sebi that penalised them in the co-location case. The tribunal also fixed November 27, as the date for the disposal of the case and said no further extension will be granted to anyone. READ MORE
Steel stocks gain as govt allows SAIL to sell iron ore from captive mines
Shares of steel companies such as SAIL, Tata Steel, Jindal Steel and JSW Steel rallied around 4 per cent in the intra-day deals on Wednesday after the government allowed state-run Steel Authority of India (SAIL) to sell 25 per cent of its iron ore produced from captive mines. In a separate announcement, the government also allowed the company to dispose of the old stock of 70 million onnes (MT) of low grade iron fines and ores (including slime), lying dumped across different captive mines of SAIL. READ MORE
Sectoral trends at NSE at this hour
Global markets check
Caution ahead of an expected US interest rate cut kept wider financial markets in tight ranges.
European shares are expected to tread water, with pan-European Euro Stoxx 50 futures shedding 0.06 per cent, German DAX futures losing 0.1 per cent and FTSE futures down 0.14 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.14 per cent while Japan’s Nikkei dipped 0.18 per cent after 10 straight days of gains and China’s blue-chip share index rose 0.52 per cent.
NEWS ALERT | HCL Tech bags contract from Luxembourg-based company Aperam for AI & automation services: BSE filing
NEWS ALERT | Tata Comm partners Conecta Wireless to address enterprises’ digital transformation needs: BSE Filing
NEWS ALERT | Saudi Fin Min says still considering secondary market options w.r.t locations for Aramco IPO: CNBC TV18 via Agencies
BUZZING STOCK:: Tata Metaliks Limited surges over 10%
NEWS ALERT | SRF to close technical textiles business in Thailand: BSE Filing
-- It was economically unviable to continue running the plant, the company said.
NEWS ALERT | DHFL lenders seek RBI approval to take over a portion of firm: Bloomberg
42 stocks from BSE500 index trade near 52-week lows; do you own any?
As many as 42 stocks from the S&P BSE500 index are trading close to their respective 52-week lows on the Bombay Stock Exchange (BSE). These are the stocks that are both less than 10 rupees and 10 per cent away from their respective previous year low levels (as per the closing prices on September 17). A chunk of the list belongs to bank stocks. Seeking to spur lending needed to revive economic growth, the government last month announced a merger of smaller banks to create four new lenders that would hold more than half of the Indian banking industry’s assets. READ MORE
NEWS ALERT | Govt to invite bids from global coal miners by 2019-end: sources to Reuters
-- Govt to allow development of coal blocks, to be put up for auction, by early 2020
-- Govt to invite 1st-ever global tender for coal mining by 2019-end.
NEWS ALERT | Bank Of Baroda to raise up to Rs 1,000 cr via bond issue: BSE Filing
NEWS ALERT | Rana Kapoor & family eye selling stake in unlisted Co to pay creditors' dues: sources to CNBC TV18
-- Eye selling stake in affordable housing, sports, logistics and Co-working space businesses
Rana Kapoor, former MD and CEO, YES Bank
BUZZING STOCK | PC Jeweller jumps 7.50%
HDFC Securities on ICICI Prudential Life
We estimate ~23% CAGR in both Top and Bottom lines over FY19-21E. Currently, It is trading at 2.2x P/EV for FY21, which is quite attractive among the other listed players. We recommend BUY on the stock for the target price of Rs. 445.
Aramco Attack | Oil may touch $100/barrel if Saudi fails to resume oil supply: Analysts
Attacks on two plants at the heart of the kingdom's oil industry on Saturday knocked out more than half of Saudi crude output, or 5% of global supply.
Working capital under stress due to customer’s budget constraint, but going ahead improvement in receivables is expected due to advances from recently won Akash Missile order. We have lowered EBITDA margin assumption and hence cut earnings by 7 per cent/4 per cent for FY20/21E respectively. The stock is currently trading at 15.2x/13.7x FY20/21E. We maintain 'Accumulate' rating on stock with TP of Rs 120.
RBI decision to cut risk weights for retail loans credit negative: Moody's
Rating agency Moody's said on Wednesday that Reserve Bank of India's decision to reduce risks weights for consumer loans from 125 per cent to 100 per cent at a time when economy is slowing down was credit negative. The reduction in risk weights would encourage banks to increase their exposure to this loan segment at a time when credit risks are already increasing from a slowing economy, Moody's said. READ MORE
BUZZING STOCK:: Alkem Labs gains
Market check | Sudden rise in Markets
Buzzing | Prestige Estate Projects rallies over 7%
Indiabulls Real Estate nears three-year low; stock tanks 48% in two months
Shares of Indiabulls Real Estate were trading near three-year low of Rs 58, down 7 per cent on the BSE on Wednesday. This is the lowest level since November 22, 2016. In the last two months, the stock has tanked 48 per cent from a level of Rs 112. In comparison, the benchmark S&P BSE Sensex was down 6 per cent and S&P BSE Realty index slipped 9.5 per cent during the same period. READ MORE
Rupee at day's high
Pick of the week :: Kotak Securities
KNR Constructions Ltd
Price: Rs 222
Target: Rs 300
Potential Upside: 35.1%
KNR has robust order book of Rs. 65.2 bn (at Q1FY20 end) which is 3.4x FY19 revenue and includes Rs. 18.9 bn of EPC component of 3 HAM projects where appointed date/FC are awaited. The present order book is largely concentrated in southern region comprising 97% of order book where the company has strong foothold.
KNR has entered into share purchase agreement with Cube Highways and Infrastructure III Pte. Ltd for four HAM projects. Cube Highways will buy 49% stake in these projects at approximate valuation of 1.5x to 2x P/BV.
NEWS ALERT | Europe August car sales down 8.4%, biggest monthly drop in 2019
Market check | Sensex trades range-bound
NEWS ALERT | Axis Bank to launch QIP of $1.5-$2 billion soon: sources to CNBC TV18
-- FIIs & MFs likely to have shown inclination to participate
-- Dilution seen around 5-9%; Book value to increase between 2-7%
-- Existing promoters, LIC, GIC, may also participate
-- Funds to be used for strengthening of balance sheet and growth
IndiaMART InterMESH hits highest level since listing, zooms 51% in 3 weeks
Shares of IndiaMART InterMESH were trading higher for the fifth straight day, up 3 per cent at Rs 1,739 on the BSE on Wednesday. The stock was quoting at its highest level since listing on July 4, 2019. In past three weeks, the stock of India's largest online business-to-business marketplace has zoomed 51 per cent from level of Rs 1,155, as compared to 2.5 per cent decline in the S&P BSE Sensex during the same period. READ MORE
S&P revises Glenmark outlook to 'negative' on weak operating performance
Standard and Poor's (S&P) has revised the outlook for pharma major Glenmark to 'negative' on weaker-than-expected operating performance and refinancing risk for notes that mature in 2021.
"Glenmark's weaker-than-expected operating performance and elevated capital spending will result in low financial headroom over the next 12 months", rating agency S&P said in a statement on Wednesday. The drugmaker's rating has been affirmed at 'BB-'. READ MORE HERE
Auto stocks slide on report GST Council unlikely to back tax cut for sector
Shares of automobile companies, including auto ancillary firms, traded lower on Wednesday on report that the goods and services tax (GST) panel is unlikely to approve lowering the tax for the sector this week, as a study has warned of major revenue losses. According to this Reuters report, a government study, attached to the agenda of a September 20 GST panel meeting, has said the total annual revenue loss could be as much as Rs 50,000 crore ($6.95 billion), if the panel decided to lower tax rates for the auto sector to 18 per cent from 28 per cent. READ MORE
NEWS ALERT | Have asked NMDC to increase production: Steel Secy to CNBC TV18
-- May add 9-10 mt; Donimalai incident won't be repeated
-- Taking steps to ensure iron ore availability
-- Disruption to happen to mines with private sector
NEWS ALERT | India continues to remain net importer of Steel: Binoy Kumar, Steel Secy to CNBC TV18
-- Imports came down in Aug
-- Imports rose from FTA countries; especially Korea
-- Integrated steel Plants are under pressure
Tyre production dips on slowdown in domestic market, overall exports up 18%
Against the backdrop of a slowdown in the domestic market, overall tyre production in the country has remained in the negative zone with a decline of around four per cent during Q1FY20 compared to the same period last year.
Motorcycle tyre production, which weathered the slowdown successfully during FY19, is witnessing a decline in the current financial year, while passenger car tyre production continues to remain in the negative territory. However, the good news is that overall tyre exports went up by 18% in the Q1FY20. READ MORE
Hotel Leelaventure, TAJGVK, Lemon Tree rally up to 15% on GST rate cut hope
Among individual stocks, Hotel Leela Venture and TAJGVK Hotels & Resorts jumped 15 per cent and 11 per cent, respectively in the intra-day trade so far. Meawhile, Royal Orchid Hotels, EIH Associated Hotels, Oriental Hotels, EIH, Lemon Tree Hotels and Indian Hotels were up between 3 per cent and 5 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.45 per cent at 36,645 points at 09:29 am. READ MORE
Chart check: Sensex must cross 37,700 level to attract follow-up buying
Benchmark indices have taken a heavy beating in the last two sessions amid fears that a spike in crude oil prices following attacks on Saudi oil facilities could hurt the economy further. The S&P BSE Sensex on Tuesday tanked 642 points or 1.73 per cent to end at 36,481.09 while the NSE's Nifty50 settled at 10,818, down 186 points or 1.69 per cent. READ MORE
Bajaj Finance gains 3% as board approves raising Rs 8,500 crore via QIP
"The board of directors have approved, subject to shareholders approval, raising of capital through a qualified institutions placement (QIP) for an aggregate amount not exceeding Rs 8,500 crore by issue of equity shares and/or eligible securities," it informed the exchanges on Tuesday, post market hours. READ REPORT HERE
Indian economy can worsen further, market valuation too steep: Marc Faber
The sudden attack on Saudi Aramco’s facilities saw oil prices flare up and dented sentiment across global financial markets. Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report tells Puneet Wadhwa there are pockets of value emerging across the globe. However, at the current juncture, some part of the portfolio should be in cash. READ MORE
Maruti Suzuki India slides over 1%, top loser on S&P BSE Sensex
Bharat Forge falls over 2%
Nifty Auto index erases early gains
Union Bank of India leads Nifty PSU Bank index
Ahluwalia Contracts rises
DHFL slips 1.6% on payment default
Rupee opens 28 paise higher against US dollar as crude oil price eases
Regaining some of its lost ground, the rupee on Wednesday opened 28 paise higher at 71.50 against the US dollar as crude oil prices cooled off after Saudi Arabi said it will restore lost oil production by September-end. The domestic unit on Tuesday weakened by another 18 paise to settle at 71.78 against the US dollar as investors fretted over higher crude oil prices. READ MORE
NMDC gains in morning deal
GHCL trades flat with positive bias
Britannia Industries dips over 3%
Lemon Tree Hotels gains
Bajaj Auto gains
Sunteck Realty rises in the early trade
Bajaj Finance gains 2% on fund-raising plan
Coffee Day Ent rises over 3% on signing definitive agreement with Blackstone
Indian Hotels gains on reports GST Council may cut rates
BPCL gains as oil prices slide 6%
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
Sebi bans Gautam Thapar, three others from markets over CG Power fraud
The market regulator also barred the chief financial officer (CFO) and two directors of the company for their involvement in dubious transactions. Further, Sebi restrained three entities belonging to Thapar-led Avantha Group from diverting their money or disposing of their assets. It has also directed CG Power to take necessary steps to recover the amount due to it and take legal action to safeguard the interests of investors. READ MORE
Slowdown dampens consumer confidence; may impact festive buying: Survey
The ongoing slowdown may dampen festive season sparkles as majority of the consumers are planning to spend less than a reasonable amount by October. A survey conducted by LocalCircles, across 168 cities covering over 22,000 consumers, further reflects that consumers’ confidence is low, when it comes to their own assessment about household financial situation in the next few months. READ MORE
Top gainers and losers on S&P BSE Sensex during Pre-open
Market at Pre-open
Market at Pre-open
Rupee opens higher at 71.50/$ vs Tuesday's close of 71.78 against the US dollar
WeWork delays IPO after frosty investor response: All you need to know
WeWork owner The We Company has postponed its initial public offering (IPO), walking away from preparations to launch it this month following lacklustre response from investors to its plans.
The US office-sharing start-up was getting ready to launch an investor road show for its IPO this week, before making the last-minute decision on Monday to stand down, people familiar with the matter said. The company has been under pressure to proceed with the stock market flotation to secure funding for its operations. READ FULL REPORT
TCS Q2 growth may suffer because of slump in BFSI, retail businesses
The country’s biggest IT services firm Tata Consultancy Services (TCS) is likely to see continued softness in its banking, financial services and insurance (BFSI) as well as retail verticals in the current quarter, impacting its growth numbers.
In a recent investors’ meet with brokerage firms such as ICICI Securities and Sharekhan among others, the top management of TCS blamed slow recovery in these key verticals for the softness. Company executives said both macroeconomic and client-specific factors have had a role to play. READ MORE
Auto stocks, Bajaj Finance, Suntech Realty, oil-linked firms to watch today
Here's a look at the top stocks that may remain in focus today -
Auto stocks: The goods and services tax (GST) panel is unlikely to approve lowering the tax for the auto and allied components sector this week, as a study has warned of major revenue losses, said a Reuters report citing two government officials.
Coffee Day: Coffee Day Enterprises on Tuesday said it has signed definitive agreements with private equity major Blackstone and Salarpuria Sattva Group for sale of Global Village Tech Park at an enterprising value of Rs 2,700 crore. READ MORE HERE
No slowdown, auto sector making hue and cry to get package from govt: CAIT
Traders body CAIT on Tuesday said there is no slowdown in the domestic automobile sector and the industry is making hue and cry only to get a package from the government.
The auto industry has been attributing the sales downturn to several factors like high GST (Goods and Services Tax) rates, farm distress, stagnant wages and liquidity constraints. READ MORE
In a first since 1998, NMDC and GJEPC to auction rough diamonds in Surat
So far, rough diamonds mined from the Panna mines in Madhya Pradesh were auctioned online but displayed only at Panna. However, now on with the support of GJEPC, for the first time NMDC is now enabling display of rough diamonds from Panna mines at the newly built Surat International Diatrade Centre. READ MORE
Aramco Attack | Saudi crisis pushes India's fuel prices to highest level since Budget
Petrol and diesel prices on Tuesday saw the biggest hike since July 5 Budget as India voiced concern over spike in global oil prices following attacks on Saudi Arabian crude oil facilities.
Petrol price was increased by 14 paisa per litre to Rs 72.17 and diesel by 15 paisa to Rs 65.58 per litre in the national capital, according to price information available from state-owned oil firms. READ MORE
Analysts see recovery for hotel stocks in H2 amid economic slowdown
After outperforming leading indices such as the S&P BSE Sensex until the start of 2019-20 (FY20), hotel stocks have been laggards in recent months, thanks to demand pressure amid economic slowdown. The stocks of EIH, Indian Hotels Company (IHCL), and Lemon Tree Hotels are down by up to 9 per cent in the past three months. READ FULL REPORT
Govt considering another 'booster dose' to revive economy: Report
The finance ministry is working on one more booster dose to give a leg-up to the economy that has hit over six-year low of 5 per cent, a senior finance ministry official said.
The blue print for the stimulus is ready that would be announced by Finance Minister Nirmala Sitharaman in the next few days, the official said without giving further details. READ MORE HERE
Securities and Exchange Board of India (Sebi) Chairman Ajay Tyagi is planning to meet top foreign portfolio investors (FPIs) in the US this month. He will meet other investors too.
The meeting comes at a time when FPIs have pulled out $5 billion from the domestic markets this quarter. READ MORE
Ajay Tyagi, chairman of SEBI
Broader market remains richly valued despite correction in stock prices
The broader equity market remains richly valued despite recent correction in stock prices, ruling out a pause in selling by foreign portfolio investors (FPIs). A broader basket of 864 stocks — either part of the BSE 500, BSE MidCap, or BSE SmallCap indices — are currently trading at 29.5x their trailing 12-month earnings, against the 10-year average earnings multiple of 19.5x. READ MORE
-- Gold prices were little changed on Wednesday as investors maintained a cautious stance ahead of the conclusion of U.S. Federal Reserve’s two-day meeting, where policymakers are expected to cut interest rates.
-- Spot gold XAU= was steady at $1,501.91 per ounce, as of 6:30 AM
-- U.S. gold futures GCv1 were down 0.3% at $1,508.8 per ounce.
Oil extends losses after Saudi Arabia to restore output by end-September
Oil prices extended their losses from the previous session on Wednesday, after Saudi Arabia's energy minister said the Kingdom will restore lost oil production by the end of the month.
But investors remained cautious of potential tension in the Middle East after the United States said it believes the attacks that crippled Saudi Arabian oil facilities last weekend originated in southwestern Iran. Iran has denied involvement in the strikes. READ MORE
Nifty view and trading ideas by HDFC Securities: Buy Britannia, Finolex Ind
BUY BRITANNIA (Rs 2,692)
Target: Rs 2600
Stop-loss: Rs 2800
Stock has been consolidating in 100 Rupees range for last 12 sessions with lower volumes. Before this consolidation, it surged nicely with spike in volumes. Stock price has formed bullish “Hammer” candle stick pattern on the monthly chart on Month ended August 2019.
Considering the technical evidences, we recommend buying the stock between CMP and Rs 2,650 for the target of Rs 2,800, keeping stop loss at Rs 2,600 on closing basis. READ MORE HERE
NEWS ALERT | Japan's exports slumped 8.2% from a year earlier in August: Reuters
-- Exports slipped for a ninth straight month in August.