MARKET WRAP: Sensex sheds 262 pts; Nifty ends at 11,004; OMCs slip up to 7%

Topics Markets | MARKET WRAP

Equity market ended in the negative territory on Monday as oil prices surged the most in 28 years in the intra-day trade following attacks on key oil producer Saudi Arabia’s crude facilities over the weekend. Counters such as oil marketing companies (OMCs), tyre, paint and aviation stocks tumbled up to 7 per cent following the development. 

The S&P BSE Sensex lost 262 points or 0.70 per cent to close at 37,123 levels, with M&M(down 2.50 per cent) being the top loser and ONGC (up around 1.50 per cent) the biggest gainer. HDFC, Reliance Industries (RIL), SBI and L&T contributed the most to the Sensex's loss while TCS, HUL and Tech Mahindra were among the top gainers.

In the broader market, the S&P BSE MidCap index slumped 38 points, or 0.27 per cent, to 13,628.07 levels, while the S&P BSE SmallCap index surged 83 points, or 0.64 per cent, to 13,096 levels.

On NSE, the Nifty50 index ended at 11,003.50, down 72 points or 0.65 per cent. Out pf 50 constituents, 14 advanced and 36 declined. 

The session was highly volatile as India VIX, the volatility index, jumped around 6 per cent to 14.93 levels. 

Among the sectoral indices on NSE, PSU bank stocks slipped the most, followed by realty and financial services counters. The Nifty PSU Bank settled at 2,479.55 levels, down 32 points or 1.28 per cent. 


Among individual stocks, Eveready Industries hit an over five-year low of Rs 57 on the BSE after the company announced that Calcutta High Court has restrained from transferring, alienating or encumbering any of its assets till the application filed by Infrastructure Leasing & Financial Services (IL&FS) was disposed of. The High Court Order is likely to delay the company’s plan to sell its battery business to pare debt.

Equitas Holdings slipped 13 per cent to Rs 102 on the BSE after the Securities and Exchange Board of India (Sebi) on Friday returned the draft scheme with regard to Equitas Small Finance Bank (ESFB), citing that it was not in compliance with the regulatory provisions. 

On the contrary, Adani Green Energy hit fresh 52-week high of Rs 58 during the session. At close, the stock stood at Rs 55.55, up around 11 per cent on the BSE. Graphite electride makers HEG and Graphite India surged up to 19 per cent. 


World stocks halted a four day winning streak and were down 0.16 per cent. European shares fell 0.55 per cent and Wall Street signal a weak start, too, with E-Mini futures for the S&P 500 off 0.34 per cent. In Asia, the blue-chip CSI300 index ended down 0.4 per cent at 3,957.72, while the Shanghai Composite Index closed flat at 3,030.75.

(With inputs from Reuters)


Here's how sectoral indices on NSE performed today

Losers and gainers on the S&P BSE Sensex


The S&P BSE Sensex lost 262 points or 0.70 per cent to end at 37,123 levels while NSE's Nifty50 index ended at 11,003.50, up 72 points or 0.65 per cent. 

MARKET CHECK | Top gainers on the BSE at this hour

ICICI Securities on Mphasis

The management outlook on above industry growth rate in direct core and in line growth in DXC/HP channel indicates healthy revenue visibility. In addition, a healthy client base, strong TCV (29.9% CAGR in FY17-19) and strong growth in digital/next gen (36% CAGR in FY17-19) provide further proof points. Accordingly, we estimate rupee revenue CAGR of 11.7% (FY19-21E) and EBIT margin of 16.2% in FY21E. However, most positives are already factored in the valuation. Hence, we assign a HOLD rating to the stock. We value Mphasis at 16x P/E on an estimated EPS of ~ Rs 69.1/share (FY21E) with a target price of Rs 1,100. Key risk to the company is high exposure to BFSI segment where IT spending is under pressure.

Contributions to S&P BSE Sensex's fall today

Adani Green Energy hits 52-week high, surges 15% on heavy volumes

Adani Green Energy hit fresh 52-week high of Rs 58, up15 per cent in the afternoon deals on the BSE on Monday, on the back of heavy volumes. The stock surpassed its previous high of Rs 57 apiece touched on September 17, 2018 in the intra-day deal.
Trading volumes at the counter jumped 10-fold with a combined 5.3 million shares changing hands on the NSE and BSE till 02:16 pm. In comparison, the S&P BSE Sensex was down 0.72 per cent at 37,117 level.READ MORE

BSE500 stocks that hit 52-week high today

ABBOTT INDIA 9905.00 10015.00 61.15 0.62
ADANI GREEN 55.40 57.50 5.20 10.36
ASTRAL POLY 1136.50 1255.00 58.82 5.46
PETRONET LNG 267.00 270.65 0.40 0.15
TIMKEN INDIA 733.45 759.70 41.80 6.04
» More on 52 Week High

Mahindra & Mahindra dips over 2%

Equitas Holdings tanks 13%

Global markets check

European shares fell on Monday after four straight sessions of gains as attacks on crude facilities in Saudi Arabia and weak Chinese data added to worries over global growth while boosting shares in unaffected oil producers. The pan-European STOXX 600 index and trade-sensitive German shares DAX were both down 0.6 per cent.
Shares in Asia extended losses as bleak economic data from China sapped investors’ appetite for riskier assets. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4 per cent, China’s blue-chip index eased 0.5 per cent, while Hong Kong’s Hang Seng index faltered about 1 per cent.


Index Contributors at this hour

ICRA on oil

According to K. Ravichandran, Senior Vice-President and Group Head, Corporate Ratings, ICRA, “While the oil markets await further updates on the resumption of supplies from Saudi Arabia, the oil markets will nevertheless be nervous as any retaliatory measures by Saudi Arabia and its allies will keep the market on tenterhooks. As a result, oil prices should factor in sizeable geo-political risk premium which will be negative for Indian consumers. Nevertheless, this impact is likely to be short lived as the market will rebalance swiftly once the tensions abate.” 
For the Upstream sector, an increase in crude oil prices is credit positive as their realisations and cash accruals will increase. As per ICRA’s estimates, till an Indian Basket crude price of around $70-75/bbl, the PSU upstream companies may not have to bear material under-recoveries. Thus, their net realisation and cash accruals will improve unless the extant under-recovery sharing formula is changed. However, the GoI had not called upon the Upstream companies to bear the under recoveries during April-November 2018 when crude oil prices were consistently above $70/bbl and had breached $80/bbl in September-October 2018. Higher crude oil prices, if sustained, will lead to an increase in capex by the private players too.
The refiners are expected to benefit from inventory gains in the short-term due to increase in crude oil prices. Additionally, an increase in crude oil prices would lead to an increase in the working capital borrowings and interest expense of refining companies. Besides, the increase in crude oil prices would lead to an increase in under recoveries on LPG and SKO, delays in the reimbursement of which by the GoI, as had happened in FY2019, will also lead to higher working capital borrowings. Significant increase in crude oil prices has the potential to slow down global demand growth, already reeling under the impact of the US-China trade war, which could also adversely impact global crack spreads and thus, GRMs of the domestic refineries over the medium term, although IMO norms implementation for bunker fuels could offer some respite from Jan 2020.
As regards the impact on the consumers, Prashant Vasisht, Vice President and Co-Head, Corporate Ratings, said “Higher petroleum products prices are expected to modestly impact the demand growth of petroleum products over the near to medium term. Industrial consumers may face pressure on the profitability with rise in input prices of crude derivatives besides possible increase in power and fuel cost. The retails consumers will face increase in inflation driven by higher transportation and logistics cost. Nonetheless, CGD companies will be well placed on the demand front as the price differential between CNG/PNG vs alternate liquid fuels widens giving them better pricing power”

NEWS ALERT | Mindtree enters into agreement with Atotech for digital solutions: BSE filing

NEWS ALERT | ECGC to launch new trade finance scheme called Niryat Rin Vikas Yojana (NIRVIK), says Piyush Goyal: CNBC TV18

-- NIRVIK to cover 90% of prinicipal interest of pre and post shipment credit: Goyal

Alert: Export Credit Guarantee Corporation of India

Why has India's mega public sector banks merger plan failed to lure funds?

India’s biggest bank overhaul in decades to merge state-run lenders beset with bad loans and low capital hasn’t convinced investors to increase holdings of the shares.
Fund managers including Aberdeen Standard Investments Ltd. and JPMorgan Chase & Co. are shying away from increasing their positions in government-owned lenders. As well as poor asset quality at the banks, they cited uncertainty about the mergers’ time-line. READ MORE

Buzzing stock :: HEG soars 16%

Emkay Global on Colgate

We expect a sequential improvement after the weak Q1 but do not see upsides to our forecasts for now (13% earnings CAGR). The improvement in growth and market share would be a positive in the near term, but Colgate needs to do more beyond oral care to return to and sustain double-digit growth. We maintain Hold with a revised target price (TP) of Rs 1,370 (Rs 1,240 earlier), now valuing it at 38x Sep’21E EPS, in line with Dabur/Marico. We increase our weight and become overweight in Emkay Alpha Portfolio (EAP).

EXPERT COMMENT | Rahul Gupta, Currency Research Head, Emkay Global

“India’s WPI has marginally increased than what market was expecting, mainly on an uptick in food and vegetable prices. The market was expecting 0.95 per cent while August WPI came in at 1.08 per cent, unchanged from July figure of 1.08 per cent. On an average, the uptick in food inflation has been offset by lower fuel and power inflation. Going ahead, if the tensions in Middle East worsen, it will have adverse impact on inflation prints. Lower inflation numbers (CPI, WPI) state that possibility of a repo rate cut by RBI is still alive.”

Warburg Pincus may buy Andhra Bank's 20.5% stake in IndiaFirst, says report

Private equity firm Warburg Pincus, which already owns a 26 per cent stake in IndiaFirst Life Insurance, is looking to buy another 20.5 per cent stake in the insurer from Andhra Bank, The Economic Times has reported.
“Warburg Pincus is in talks to buy a 20.5 per cent stake in IndiaFirst Life Insurance from Andhra Bank… Andhra Bank is looking to sell a partial stake in the company,” a person familiar with the deal was quoted as saying in the report. The deal, if finalised, will help Andhra Bank earn up to Rs 700 crore, said sources who were quoted in the report. READ MORE

Market check

OnMobile Global rallies 20% as Jump Networks set to acquire promoter stake

Shares of OnMobile Global were locked in the upper circuit of 20 per cent at Rs 39 apiece on the BSE on Monday after Jump Networks announced that it will acquire entire 48.18 per cent promoter stake held by OnMobile Systems Inc (OMSI) in the company.
OMSI entered into a share purchase agreement (SPA) on September 13, 2019 with Jump Networks for the sale of 19 million equity shares of OnMobile at a price ranging from Rs 75.50 to Rs 78 per equity share. READ MORE

Market check

Eveready Industries hits over 5-year low, stock tanks 75% in eight months

Shares of Eveready Industries hit an over five-year low of Rs 57, down 5 per cent on the BSE on Monday after the company announced that Calcutta High Court has restrained from transferring, alienating or encumbering any of its assets till the application filed by Infrastructure Leasing & Financial Services (IL&FS) was disposed of. The High Court Order is likely to delay the company’s plan to sell its battery business to pare debt. READ MORE

Single-use plastic ban sees paper stocks rally. Are the gains sustainable?

It has been a dream run for the paper stocks in the last one month as the scrips have rallied up to 85 per cent. The biggest reason behind the rally, as per experts, is the government's announcement to ban single-use plastics to curb pollution. The announcement has been the shot in the arm for most paper stocks.
Consider this. Last week, as many as 14 stocks from the sector gained 10 per cent or above as compared to a modest 0.64 per cent gain in the benchmark S&P BSE Sensex. Balkrishna Paper Mills, up 29 per cent, was the top gainer in this space followed by Star Paper Mills (up 26 per cent), ACE Equity data show. READ MORE

NEWS ALERT | JSW Steel seeks protection from any liabilities arising out of ongoing money laundering investigation: CNBC TV18

-- JSW Steel moves NCLAT

-- Seeks protection from liabilities arising out of allegations levelled by former promoters of Bhushan Power & Steel 

-- NCLAT will next hear the case on October 14

Alert: On September 5, NCLT had approved JSW bid of Rs 19,700 cr for Bhushan Power & Steel

NEWS ALERT | US FDA begins inspection at Cipla’s Goa facility: CNBC TV18

-- Audit expected to be a surprise inspection 

Aramco Attack | Saudi oil crisis may push domestic air fares up by 10-15% by month end

"If the crude oil price keeps on rising we will have to decide on hiking airfares. We are closely monitoring the crude oil prices," a senior Air India executive said on Monday.
The national carrier, which is already struggling with its fuel payments, spends around Rs 6,000-7,000 crore annually on fuel. A 10 per cent hike in crude price would mean over Rs 50-58 crore of extra costs for the airline. READ MORE

Market check | Sharp fall in Sensex

NEWS ALERT | Gold jumps 1% as Saudi attack lifts safe-haven bets: Reuters

-- Attack on Saudi Arabia’s oil facilities dented risk appetite, and boosted demand for the safe-haven bullion

-- Spot gold was up 1% at $1,503.52 per ounce, as of 9:40 am

-- US gold futures rose 0.8% to $1,511.20 per ounce.

Trade war: China industrial output growth at 4.4% in Aug; slowest in 17 yrs

The slowdown in China's economy deepened in August, with industrial production growing at its weakest pace in 17-1/2 years amid rising US trade pressure and softening domestic demand. Retail sales and investment gauges also worsened, data on Monday showed, reinforcing views that China is likely to cut some of its key interest rates this week for the first time in over three years to prevent a sharper slump in activity. READ MORE

NEWS ALERT | ARAMCO officials told Indian refiners there won't be any supply shortage: Oil Min officials

-- They are closely monitoring the supply situation along with refiners

(Via ET Now)

NEWS ALERT | August WPI inflation unchanged at 1.08% on a MoM basis

-- Manufactured products inflation flat at 0.34%

-- Primary articles inflation at 6.43%

-- Fuel and Power inflation at -4% vs -3.64

BPCL, HPCL, IOC appear bullish on the charts despite a surge in oil prices

Brent oil prices rallied on Monday, surging past the $70 a barrel mark after the largest-ever disruption of crude production in Saudi Arabia amid drone attacks on its key facilities. The disruption, analysts say, may keep oil prices elevated in the near term. READ MORE HERE


NEWS ALERT | PSBs reach out to IRDA, seeking time to reduce stake in insurance subsidiaries: sources to CNBC TV18

NEWS ALERT | Dr Reddy's launches over-the-counter Prevacid capsules

BUZZING STOCK:: Wockhardt Ltd zooms over 7%

NEWS ALERT | KKR converts exposure in CG Power from trust to direct stake of 10.8%: sources to CNBC TV18

-- KKR, previously, had voting right in CG Power but no stake

Alert: 10% equity of CG Power changed hands on the NSE BL window earlier today

       : KKR, other lenders invoked pledge to Avantha Group in March 2019

Weekly Derivative Pick :: ICICI Securities

Long Vedanta (VEDLIM) September future in the range of Rs 147-149 | Target: Rs 165 | Stop Loss: Rs 139

Metal stocks had come under severe selling pressure in the last couple of months as the US-China trade spat hogged the limelight. Vedanta witnessed significant short additions as OI in the stock had swelled to 70 million shares in the August series from just 20 million shares in May. Early signs of short covering are visible in the stock as OI has declined below 60 million shares in the last session. Moreover, the stock was able to end near its highest Call base of 150 strike. We expect positive momentum to continue in the stock on the back of short covering towards | 165 in the short-term.

Most active stocks by volume

VODAFONE IDEA 5.39 0.01 0.19 6044945
YES BANK 67.50 -1.10 -1.60 4171644
BIOCON 232.60 0.05 0.02 3479485
NBCC 37.70 0.15 0.40 1675510
RELIANCE CAPITAL 36.85 0.45 1.24 1506789
» More on Most Active Volume

Colgate Palmolive rallies 6% in a weak market, trades near record high

Expectations of recovery in volume pushed shares of Colgate Palmolive India 6 per cent higher intra-day to Rs 1,327 in an otherwise weak market on the BSE on Monday. The personal products company's stock, which was trading higher for the third consecutive trading session, was quoting close to its record high level of Rs 1,365, touched on January 1, 2019. READ MORE

NEWS ALERT | JKumar Infraprojects bags order worth Rs 324 cr from MMRDA: BSE filing

NEWS ALERT | L&T Construction bags contracts in the range of Rs 1,000-2,500 cr: BSE filing

Nifty PSU Bank index off day's lows

Market check

Phoenix Mills hits 52-week high; rises over 4%

NEWS ALERT | China's August industrial output growth falls to 17-1/2 year low: Reuters

-- Industrial output growth weakened to 4.4% YoY in August

-- Growth slowest since February 2002

-- Industrial growth was 4.8% in July

Eveready's plan to sell battery business to pare debt tied in legal knots

Eveready initiated discussion early this year with some companies, including Energizer and Duracell, to sell its battery business to pare debt. Though Eveready informed the stock exchanges last week that no definitive decision had been taken, Duracell is believed to have emerged as the frontrunner and an offer of Rs 1,600-1,700 crore is under discussion. READ MORE

Pharma stocks gain in an otherwise weak market

BIOCON 233.25 233.90 228.40 0.70 0.30
WOCKHARDT 339.60 345.00 308.80 24.95 7.93
VIVIMED LABS. 17.75 17.75 17.00 0.10 0.57
SUN PHARMA.INDS. 424.90 427.50 420.50 1.65 0.39
SYNCOM FORMUL. 0.81 0.82 0.80 -0.01 -1.22
SUVEN LIFE SCIE. 302.90 304.75 274.65 26.35 9.53
GLENMARK PHARMA. 379.25 381.95 364.80 10.40 2.82
SEQUENT SCIEN. 87.05 87.25 82.20 3.20 3.82
LUPIN 773.50 780.00 761.65 9.50 1.24
IND-SWIFT LABS. 46.75 46.95 46.50 0.35 0.75

Equitas Holdings tanks 17% as Sebi rejects draft scheme for Small Fin Bank

Shares of Equitas Holdings slipped 17 per cent to Rs 97 on the BSE on Monday after the Securities and Exchange Board of India (Sebi) on Friday returned the draft scheme with regard to Equitas Small Finance Bank (ESFB), citing that it was not in compliance with the regulatory provisions. The market regulator advised the company to re-submit the same after ensuring compliance with the provisions mentioned in the Sebi circular. READ MORE
Equitas Holdings

Oil-linked stocks slip as crude prices surge after Saudi oil disruption

Oil marketing companies (OMCs), paint, and tyre stocks came under heavy pressure on Monday after crude oil prices surged more than 10 per cent following attacks on two Saudi Arabian plants that slashed output in the world's top producer by half. US President Donald Trump blamed Iran for the attack, thus raising the possibility of a military strike on the country.
West Texas Intermediate jumped 10.68 per cent to $60.71 and Brent climbed 11.77 per cent to $67.31 in early Asia trading following the blasts at facilities run by state-owned giant Aramco. Brent oil prices hit a 28-year high, rallying to over $71 per barrel mark. READ MORE HERE

PGIM India funds down 21-30% after downgrade of Anil Ambani's firm

The ratings downgrade of Anil Ambani group firm Reliance Business Broadcast News Holdings (RBBNH, which owns Business Broadcast News) has led to a steep drop in the net asset values (NAVs) of mutual fund (MF) schemes with concentrated exposure to its debt papers.
Two of PGIM India’s funds saw a 21-30 per cent drop in NAVs on Friday, following the downgrade. As of end-August, 23 schemes had Rs 583 crore of exposure to RBBNH’s debt papers, data sourced from Rupeevest showed. READ MORE

Iron ore prices may decline to $60 on weak Chinese demand, says JSW Steel

JSW Steel Ltd., India’s most valuable steel producer, is predicting declines for iron ore next year as demand from biggest consumer China eases and supplies recover.
Prices may trade between $80 and $85 a ton for the rest of 2019 before sliding to $60 to $65 next year, Seshagiri Rao, joint managing director of the Mumbai-based mill, said. The key steel-making raw material has benefited from “speculation” and there is no reason why ore should be trading at elevated levels of about $95, he said. READ MORE

Brent oil sees biggest intra-day jump in 28 years. Can the up move sustain?

Brent crude oil prices jumped 20 per cent in trade on Monday to around $71 a barrel – their biggest intra-day jump since 1991 – as attacks on a Saudi Aramco facility halted production of 5.7 million barrels of crude a day. This is more than half of Saudi Arabia's global daily exports and nearly 5 per cent of the world's daily crude oil production. READ MORE HERE 

Prabhat Dairy falls 10% on profit booking as board approves delisting plan

Shares of Prabhat Dairy slipped 10 per cent to Rs 71 in the early morning trade on the BSE on Monday after the company's board approved and recommended its delisting proposal, with a floor price of Rs 63.77 per share.
On September 5, the company had informed the bourses that it was mulling to voluntarily delist the equity shares of the company from stock exchanges. Between September 3 and 13, the stock of the packaged foods company had rallied 37 per cent, as compared to a 2.2 per cent rise in the S&P BSE Sensex. READ MORE

NEWS ALERT | Granules enters into agreement with Ajinomoto OmniChem N.V for divestment in Granules OmniChem: BSE filing

YES Bank dips over 2%

EXPERT COMMENT | Arun Kumar, Market Strategist, Reliance Securities

"The early morning sentiments for global equity markets are negative due to the attack on one of the Saudi crude facilities. Indian equities is particularly sensitive to changes in crude prices and USDINR & these have adversely opened. We do expect incremental pain as the day progresses. Any selling pressure on Nifty 50 index below 10,950 is likely to lead to  panic selling."

MindTree trades in the green

Realty stocks trade mixed

InterGlobe Aviation dips 3% as oil prices rise

Colgate Palmolive gains over 3%

Indiabulls Housing Fin gains 3% in a weak market

Glenmark Pharma trades mildly lower

Astral Poly Technik rallies over 11%

TCS trades higher on weaker rupee

Asian Paints trades with over 2% cuts

Bharat Petroleum slips 4%

Hindustan Petroleum Corp trades over 5% lower

SBI trades with over 1% cut

Prabhat Dairy down over 6%

SpiceJet hits fresh 52-week low; dips over 4%

Reliance Industries slips 2% in early trade

Sectoral trends at NSE during Opening trade

Market at Open

Top gainers and losers on S&P BSE Sensex during Opening trade

Market at Open

NEWS ALERT | US FDA issues no observations to Glenmark's Indore unit inspected last week: sources to CNBC TV18

Reliance Industries tank during Pre-open after attack on Saudi Aramco unit

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

Market at Pre-open

Market at Pre-open

Rupee opening

Rupee opens weaker at 71.62/$ vs Friday's close of 70.91 against the US dollar

SBI drops IPO plans for general insurance arm; card JV to hit market in Q4

The largest lender State Bank has dropped its plan to take its general insurance arm public as there is no need for additional capital now, chairman Rajnish Kumar has said.
Investor interest for its cards business is very high, and SBI Card listing will happen in the March quarter, he said.
The bank was earlier looking for an IPO for SBI General Insurance in FY21.READ MORE

Business growth moderates for four listed private life insurance players

Life insurance stocks have outperformed the broader markets in the last three months amid strong business growth and a robust outlook. The BS life insurance stock index is up 16 per cent in the last three months, while the BSE Sensex is down by about 6 per cent.
Though growth potential remains strong, the recent premium data highlights that growth for private players may be moderating. While the pace of growth for the four listed life insurers has come down, HDFC Life and Max Life fared better. READ MORE

Adani Group, Reliance Industries to lock horns for India's data centres

Adani Group and Reliance Industries (RIL) seldom find themselves as competitors to each other. India’s data centre market would prove to be one, where both might be chasing the same set of clients, though for different reasons.
At RIL’s annual general meeting last month, Mukesh Ambani, chairman and managing director, announced a partnership with Microsoft to launch data centres across India. READ MORE

MF schemes exposed to Altico see 1-8% dip in NAVs after rating downgrade

Mutual fund (MF) schemes holding Altico Capital’s debt papers saw a 1-8 per cent dip in their net asset values (NAVs) on Friday, after the company was given ‘D’, or the default grade rating.
UTI MF, along with Reliance Nippon Life Asset Management (RNam), has 15 schemes exposed to the troubled developer financier, which defaulted on its interest obligations related to an external commercial borrowing on Thursday. READ MORE

Saudi oil attacks raise spectre of oil at $100 per barrel, say analysts

The oil market will rally by $5-10 per barrel when it opens on Monday and may spike to as high as $100 per barrel if Saudi Arabia fails to quickly resume oil supply lost after attacks over the weekend, traders and analysts said. 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 per cent of global supply. READ MORE

There aren't any immediate triggers to reverse mkt trend: Prakash Kacholia

After a sharp slide since the Budget in July, the markets are in consolidation mode. Prakash Kacholia, managing director at Emkay Global Financial Services, tells Puneet Wadhwa that India’s underperformance versus the emerging markets (EMs) in the last three months could be peaking. READ FULL INTERVIEW
Prakash Kacholia, Managing director, Emkay Global Financial Services

Oil-linked stocks, realty stocks, SBI, and auto stocks to watch today

Here's a look at the top stocks that may remain in focus today -
Oil-linked stocks: Oil marketing companies (OMCs), paint and tyre stocks are likely to hog the limelight today as the crude oil prices jumped 20 per cent following an attack on Saudi Arabia’s oil facilities on Saturday that cut more than 5% of global oil supply. The prices, however, retreated a bit but was still up 10 per cent till the time of writing this report.
SBI: The largest lender State Bank has dropped its plan to take its general insurance arm public as there is no need for additional capital now, chairman Rajnish Kumar has said. READ MORE

Commodity picks: September 16, 2019

Mustard cake
Prices at the Jaipur market are trading at Rs 1,922 per quintal. It could head head towards Rs 1,945 per quintal. Mustard cake is the cheapest protein-based feed ingredient and supplies are limited due to slow pace of crushing. Thus prices are expected to trade higher.
Castor seed
Prices at Deesa trade at Rs 5,680 per quintal and are expected to be firm in the week ahead at around Rs 5,730 per quintal. Due to excess rains at major producing regions, there is a fear of crop damage which coupled with low availability which could support prices.

NBFCs in repair, rebuild and recalibrate mode as funds position improves

A year ago when the liquidity bear hugged the financial system, just a handful expected it to have a lasting impact on non-banking financial companies (NBFCs). But the victims of tight money supply are cropping up with every passing month, the latest being foreign funds-backed Altico Capital.
While in size it may not be material, the default did have a contagion effect on listed NBFC stocks on Friday, with the pack falling 2–3 per cent in an otherwise good trading session. READ MORE

Arbitrage funds are gaining favour as investors flock to safety: Experts

Arbitrage funds are gaining favour as the perceived safety tag associated with these schemes is helping them pull in money from debt investors. Assets of these hybrid funds have grown 36 per cent in the past five months to Rs 68,541 crore as on August 31, 2019.
Most of the funds in this category have returned between 6.5-7 per cent in the past year, and may offer better returns than some debt categories. READ MORE

Auto sector's rate-cut hopes fade as GST cess collection declines

Cess collection under the goods and services tax (GST) — to compensate the states for their revenue loss in the two-year-old indirect tax regime — has fallen short of requirements in the first five months of the fiscal year, dimming rate-cut hopes for the auto sector in the upcoming GST Council meeting on Friday. Some states have asked for rate cuts for five-star hotels. READ MORE

Stock recommendation by Prabhudas Lilladher: Buy ICICI Bank, CEAT

Nifty, last week, got its weekly trend turned up after 10 weeks. The weightage among Nifty50 stocks, too, is tilted more on positive, with 35 stocks trading with positive weekly trend and having weightage of 66 per cent. Bank Nifty has been an outperformer and continues to look positive. Nifty needs to cross the crucial hurdle of 11,265 and sustain above it. The support for the week is seen at 36,770/10,870 while resistance is seen at 37,950/11,260. Bank Nifty would have a range of 27,470-28,660. SBI, ICICI, etc look positive along with PSU stocks like BPCL, ONGC, NTPC,etc. READ MORE

Nifty view and stock picks by CapitalVia: Buy Federal Bank, Hindustan Zinc

Stock recommendation:
Buy Federal Bank above Rs 88
Target: Rs 93
Stop loss: Rs 84.50
The stock is showing resistance breakout from the levels of Rs 88 and as the stock is making resistance breakout in daily charts, stock is trading near its 50-day EMA and a breakout will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 88 for the target of Rs 93, keeping a stop loss at Rs 84.50 on closing basis. READ MORE

Top stock recommendations by Angel Broking: Buy Tata Steel, Bharat Forge

Nifty above 11000, hopes alive for further relief
The Nifty started trading on a positive note during the past week and rallied higher to surpass the 11,000 mark. Although, the index witnessed some retracement on Tursday, September 12, from its highs, the minor dip was bought into on the last day of the week and Nifty ended well above the 11,000 mark. Despite a truncated week, Nifty managed to clock decent gains over a percent on weekly basis, keeping hopes alive for further relief. READ MORE


Bulk deals on BSE as on Friday

Bulk deals on NSE as on Friday

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

Rupee Check

Source: Bloomberg

Oil Check

-- Oil prices retreated on Monday after hitting their highest since May at the open, on fears over supply disruptions following an attack on Saudi Arabia’s oil facilities on Saturday that cut more than 5% of global oil supply

-- At 8:00 am, Brent Crude Futures were at $66.79 per barrel, up 11% from their last close

SGX Nifty

At 8:00 am, the Singaporean Exchange for Nifty Futures was trading 109 points lower at 11,002 level.

Asian Market Check

Source: Reuters

US Market Check

Source: Reuters

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