Sensex slips 162 points, Nifty below 10,500 on fiscal deficit concerns

Representational Image
The benchmark indices ended lower on Wednesday on  fiscal deficit concerns.

The S&P BSE Sensex ended at 34,184, down 162 points while the broader Nifty50 index settled at 10,493, down 61 points.

In economic data released today, India reported a fiscal deficit of Rs 6.77 trillion ($103.72 billion) for April-January or 113.7 per cent of the target originally set for the fiscal year that ends in March.

Meanwhile, growth in India's factory activity slowed to a four-month low in February as new orders eased and weighed on output after manufacturers raised prices at the fastest pace in a year, a business survey showed on Wednesday.

The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 52.1 in February from January's 52.4 and was below the 52.8 expected in a Reuters poll.

The market participants will now be looking forward to the Gross Domestic Product (GDP) data to be released later in the day today.

In the global markets, Asian shares faltered on Wednesday and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the US.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2 per cent, on track for a second straight day of losses. Japan's Nikkei eased 0.2 per cent while South Korea's KOSPI index ticked higher. Australian shares slipped 0.4 per cent.

New Federal Reserve Chair Jerome Powell noted in his semi-annual testimony on Tuesday that the US economy was strong, inflation was ticking higher and that the global backdrop was better than in December.

(with Reuters inputs)

4:17 PM IST MARKET COMMENT: Jayant Manglik, President, Religare Broking Indian market saw another lackluster trading session amid volatility, taking cues from global markets and dismal PMI data. The Nifty index ended down 0.6% led by selling in Banking, Metal and Capital Goods stocks. The broader market indices outperformed the frontline index. On global front, Asian and Europeans markets faltered and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the US.   We expect the Indian equities to consolidate in the coming sessions without any major triggers in the near term. Also global developments could lead to market volatility in the near term. However, any further correction at this juncture should be considered as a healthy buying opportunity for investors in quality companies with strong financials and bright outlook. Meanwhile traders should remain cautious and keep their positions hedged, as volatility is likely to remain high in the coming sessions  

3:41 PM IST Sectoral Watch Private banks fall, Nifty Bank ends 1% lower

3:39 PM IST Sectoral watch Nifty PSU Banks pare losses, ends in green

3:34 PM IST Sectoral Trend

3:33 PM IST Sensex top gainers and losers

3:33 PM IST Markets at Close   The S&P BSE Sensex ended at 34,184, down 162 points while the broader Nifty50 index settled at 10,492, down 61 points.

3:27 PM IST Infosys gains for second straight day in weak market Infosys was up nearly 4% to Rs 1,189 on Wednesday in intra-day trade, extending its Tuesday’s 0.6% gain on the BSE in otherwise weak market. The stock trading close to its 52-week high of Rs 1,220 touched on January 24, 2018 in intra-day trade. READ MORE

3:23 PM IST April-January fiscal deficit touches 113.7% of full-year target   India reported on Wednesday a fiscal deficit of Rs 6.77 trillion ($103.72 billion) for April-January or 113.7 per cent of the target originally set for the fiscal year that ends in March.   Net tax receipts in the first ten months of 2017/18 fiscal year were Rs 9.7 trillion, government data showed. READ MORE

3:14 PM IST Elara Capital on Strides Shasun   Given corporate actions over FY17-18, the company will now focus on the B2C model, which remains profitable with improved leverage. It has multiple drivers, comprising the US, Australia & EU generics, branded formulations across Africa and institutional supplies (HIV & malaria).    We see a pickup in profitability, aided by niche launches in the US, healthy institutional supplies and continued momentum in the Australia business. Recommend Buy with a target price of Rs 1,025 on 18x December 2019E P/E and Rs 70 for its API business.

3:14 PM IST PNB scam throws long shadow on diamond industry in Surat, deals drop 10%   The Nirav Modi-Mehul Choksi scam has thrown a long shadow on the diamond polishing and trading industry, with its hub in Surat, Gujarat. Deals are down 8-10 per cent since the incident came to the fore on February 14. “Diamantaires do not want to take chances. Also, now, banks are tight-fisted about disbursing working capital, especially to diamantaires. This has slowed business by at least 10 per cent,” said Kirti Shah, a Surat-based diamond polisher and trader. READ MORE

3:00 PM IST Market Check S&P BSE Sensex 34,259.90 -0.25%   Nifty 50 10,515.45 -0.37%   S&P BSE 200 4,600.39 -0.24%   Nifty 500 9,273.65 -0.31%   S&P BSE Mid-Cap 16,574.26 -0.16%   S&P BSE Small-Cap 18,112.52 0.12%

2:58 PM IST FISCAL DEFICIT: April-January revenue spending at Rs 15.75 trillion, at 81% of FY18 target of Rs 19.45 trillion

LIVE UPDATES

MARKET COMMENT: Jayant Manglik, President, Religare Broking

Indian market saw another lackluster trading session amid volatility, taking cues from global markets and dismal PMI data. The Nifty index ended down 0.6% led by selling in Banking, Metal and Capital Goods stocks. The broader market indices outperformed the frontline index. On global front, Asian and Europeans markets faltered and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the US.
 
We expect the Indian equities to consolidate in the coming sessions without any major triggers in the near term. Also global developments could lead to market volatility in the near term. However, any further correction at this juncture should be considered as a healthy buying opportunity for investors in quality companies with strong financials and bright outlook. Meanwhile traders should remain cautious and keep their positions hedged, as volatility is likely to remain high in the coming sessions
 
Sectoral Watch Private banks fall, Nifty Bank ends 1% lower


Sectoral watch Nifty PSU Banks pare losses, ends in green


Sectoral Trend


Sensex top gainers and losers


Markets at Close
 
The S&P BSE Sensex ended at 34,184, down 162 points while the broader Nifty50 index settled at 10,492, down 61 points.
Infosys gains for second straight day in weak market

Infosys was up nearly 4% to Rs 1,189 on Wednesday in intra-day trade, extending its Tuesday’s 0.6% gain on the BSE in otherwise weak market. The stock trading close to its 52-week high of Rs 1,220 touched on January 24, 2018 in intra-day trade. READ MORE
April-January fiscal deficit touches 113.7% of full-year target
 
India reported on Wednesday a fiscal deficit of Rs 6.77 trillion ($103.72 billion) for April-January or 113.7 per cent of the target originally set for the fiscal year that ends in March.
 
Net tax receipts in the first ten months of 2017/18 fiscal year were Rs 9.7 trillion, government data showed. READ MORE
Elara Capital on Strides Shasun
 
Given corporate actions over FY17-18, the company will now focus on the B2C model, which remains profitable with improved leverage. It has multiple drivers, comprising the US, Australia & EU generics, branded formulations across Africa and institutional supplies (HIV & malaria). 
 
We see a pickup in profitability, aided by niche launches in the US, healthy institutional supplies and continued momentum in the Australia business. Recommend Buy with a target price of Rs 1,025 on 18x December 2019E P/E and Rs 70 for its API business.
PNB scam throws long shadow on diamond industry in Surat, deals drop 10%
 
The Nirav Modi-Mehul Choksi scam has thrown a long shadow on the diamond polishing and trading industry, with its hub in Surat, Gujarat. Deals are down 8-10 per cent since the incident came to the fore on February 14. “Diamantaires do not want to take chances. Also, now, banks are tight-fisted about disbursing working capital, especially to diamantaires. This has slowed business by at least 10 per cent,” said Kirti Shah, a Surat-based diamond polisher and trader. READ MORE
Market Check
S&P BSE Sensex 34,259.90 -0.25%
 
Nifty 50 10,515.45 -0.37%
 
S&P BSE 200 4,600.39 -0.24%
 
Nifty 500 9,273.65 -0.31%
 
S&P BSE Mid-Cap 16,574.26 -0.16%
 
S&P BSE Small-Cap 18,112.52 0.12%

FISCAL DEFICIT: April-January revenue spending at Rs 15.75 trillion, at 81% of FY18 target of Rs 19.45 trillion
FISCAL DEFICIT: April- January capital spending at Rs 2.64 trillion, at 96.9% of FY18 target of Rs 2.73 trillion.
FISCAL DEFICIT: April-January tax revenue at Rs 9.71 trillion, at 76.5% of FY18 target of Rs 12.69 trillion
FISCAL DEFICIT: Apr-Jan total spending at Rs 18.39 trillion, at 83% of FY18 target of Rs 22.17 trillion
Just in April-January fiscal deficit at Rs 6.77 trillion vs Rs 5.64 trillion year-on-year
Sectoral Trend


Motilal Oswal Research on UPL
 
We expect UPL to clock 12% revenue CAGR and 14% PAT CAGR over FY18-20 and value the company at 17x FY20E EPS of INR55.6, arriving at a TP of Rs 945. Initiate coverage with Buy.
PNB fraud & more: Nifty PSU Bank index set for worst monthly fall in 2 yrs

With shares of public-sector banks continuing to reel under pressure on Wednesday, the Nifty PSU Bank index looks set to post its sharpest monthly fall in two years. The Nifty PSU Bank index, the largest loser among sectoral indices, was trading 1.9% lower in intra-day deals, falling 18.5% so far in February. It is trading close to its 52-week low of 2,928, touched on October 19 last year. By comparison, the Nifty 50 index has lost 4.3% and the Nifty Private Bank index has shed 5.9% this month. CLICK HERE FOR FULL STORY
Market Check
S&P BSE Sensex 34,154.72 -0.56%
 
Nifty 50 10,475.50 -0.75%
 
S&P BSE 200 4,585.55 -0.56%
 
Nifty 500 9,239.70 -0.67%
 
S&P BSE Mid-Cap 16,503.36 -0.59%
 
S&P BSE Small-Cap 18,042.69 -0.26%

ABC India surges 19% on order win of Rs 1,419 million from BHEL

ABC India surged 19% to Rs 109 on the BSE in intra-day trade after the company announced that it has been awarded an order of Rs 1,419 million from the state-owned company BHEL. The order is for multimodal transportation of export project cargo from India to the MSTPP Rampal Project in Bangladesh, ABC India said in a regulatory filing. READ MORE
MUST READ PNB scam: How do you make regulators accountable?

Finance Minister Arun Jaitley has said that in India while the political leadership is held accountable for all its actions and inaction, the regulators are not accountable in the same way. Mr Jaitley’s comment came in the wake of the letter of undertaking (LoU) scam that has engulfed the state-controlled Punjab National Bank. CLICK HERE FOR FULL STORY
Sharekhan on Indian Oil Corporation (IOC)
 
We believe that the profitability of the Paradip refinery would be the key monitorable in Q4FY2018 as the refinery has largely stablised and is believed to have commenced processing of heavy crude oil. 
 
Moreover, we maintain our positive view on domestic petroleum demand growth (expect 5% volume CAGR for diesel and 7% for petrol over FY2017-FY2020E) and thus expect mid-single digit volume growth for IOCL (However, it would not be at par with industry growth rates due to intensifying competition from private players).
 
Retain positive stance on IOCL with 18-20% upside potential from current levels.
Lending rate hike coming? SBI raises term deposit rates across maturities

State Bank of India (SBI) on Wednesday raised retail deposit rates by 10 to 50 basis points across various maturity baskets, a move that may have to be followed by the banking system. CLICK HERE FOR FULL STORY
COMMODITY CUES - Soybean: Local factors underpin prices
 
Indian Soybean prices also rallied substantially since the start of this calendar year. While global bullish factors supported local Soy prices, local primary factors caused a surge in Indian Soy prices. NCDEX Soybean spot prices rose near 25% in the last 2 months on the back of tighter supplies. Along with lower arrivals and tighter supplies, downgrade of Indian Soy crop also aided the bullish sentiment. Indian Soy trade body reduced its estimate of Indian crop output to 8.35 m MT from 9.15 m MT.  The rally in Soy prices surprised local Soy meal consumers who were short of supplies.
 
(Source: IIFL report)
Air India stake sale: Govt may include call and put options in agreement

The government is likely to include call and put options in the share purchase agreement of Air India to profitably sell its residual stake in the airline after strategic disinvestment. READ MORE
World steel output in January at 139.4 million tonne, up 0.8% yoy

Global crude steel production stood at 139.4 million tonnes in January, marginally up by 0.8 per cent from the corresponding period last year as India and Japan made a sizeable contribution, the World Steel Association said in its release. READ MORE
Nomura on Bajaj Auto
 
We remain Neutral on Bajaj Auto. While we expect exports to grow at a ~12% CAGR over FY18-21F, its absence from scooters will make growth in domestic 2Ws more challenging. Also, the 3W segment has risk from high cost increases due to BS-VI, and EVs like e-rickshaws and e-autos.
Morgan Stanley cuts its India overweight to 50 bps, citing weak earnings

Morgan Stanley has reduced its overweight stance on India in its portfolio to 50 basis points (bps) from 150 bps earlier, citing disappointment in earnings. Going ahead, it sees the impact of higher oil prices, the election calendar and the prospect of a higher deficit as obstacles for the market index. “We cut our overweight in India to 50 bps, after disappointing earnings season and slowing revisions breadth. READ MORE
Ashok Leyland hits fresh high ahead of February sales figures

Shares of Ashok Leyland hit a fresh high of Rs 142, up 3% on the BSE in intra-day trade in otherwise weak market ahead of February sales figures. The commercial vehicles (CV) maker will announce its monthly sales volumes data on Thursday, March 1, 2018. READ MORE

Careful, investors! Hectic IPO activity ahead; analysts advise caution

After a fundraising of nearly Rs 700 billion via initial offerings (IPOs) in 2017, there still seems to be room for more. Over two dozen companies have lined up their initial share sale plans, together worth Rs 250 billion in the coming months, mainly for business expansions and capital requirements. READ MORE
Market Check

 
S&P BSE Sensex 34,204.99 -0.41%
 
Nifty 50 10,503.60 -0.48%
 
S&P BSE 200 4,595.04 -0.35%
 
Nifty 500 9,262.40 -0.43%
 
S&P BSE Mid-Cap 16,554.37 -0.28%
 
S&P BSE Small-Cap 18,067.94 -0.12%

Sensex to recover most losses on solid earnings growth: Reuters poll

Indian stocks will recover most of their recent losses, helped by strong corporate earnings, but will close out 2018 a little short of the record high hit at the end of January, a Reuters poll found.
 
After gaining almost 28 percent in 2017, the BSE Sensex rose to a record high of 36,443.98 in January, but is down more than 5 percent since then and is expected to end the year under that lifetime high. READ MORE

Salasar Techno hits highest level since listing;up 238% against issue price

Shares of Salasar Techno Engineering rose by 8% to Rs 365 on the BSE, its highest level since listing on July 25, 2017. The stock appreciated 238% against its issue price of Rs 108 per share. READ MORE
Cipla gains after inking pact with Roche Pharma

Cipla rose 1.41% to Rs 594 on BSE after the company announced partnership with Roche Pharma India to create greater access to key medicines. READ MORE
PNB stock cracks 6% to hit 20-month low after Firestar files for bankruptcy

Shares of Punjab National Bank slumped over 6% and fell to a 20-month low on the bourses after Nirav Modi's Firestar Diamond filed a bankruptcy plea in the United States (US) and a local court in Mumbai issued summons to the accused diamantaire. Meanwhile, media reports have surfaced that Nirav Modi is not coming back to India anytime soon. CLICK HERE FOR FULL STORY
India to grow 7.6% in calendar year 2018 amid note ban disruption: Moody's

Moody's Investors Service on Wednesday estimated that India will grow 7.6 per cent in calendar year 2018 and 7.5 per cent in 2019, amid signs of economic recovery from impact of demonetisation and GST. "There are some signs that the Indian economy is starting to recover from the soft growth patch attributed to the negative impact of the demonetisation undertaken in 2016 and disruption related to last years rollout of the Goods and Service Tax," it said. CLICK HERE FOR FULL STORY
Market Check

 
S&P BSE Sensex 34,175.16 -0.50%
 
Nifty 50 10,505.30 -0.46%
 
S&P BSE 200 4,592.14 -0.42%
 
Nifty 500 9,264.20 -0.41%
 
S&P BSE Mid-Cap 16,552.96 -0.29%
 
S&P BSE Small-Cap 18,055.14 -0.19%

India factory growth slows to 4-month low as rising prices dent demand: PMI

Growth in India's factory activity slowed to a four-month low in February as new orders eased and weighed on output after manufacturers raised prices at the fastest pace in a year, a business survey showed on Wednesday. That suggests retail inflation could continue to pick up over coming months, pressuring the Reserve Bank of India (RBI) to raise interest rates despite concerns that tighter policy could weigh on economic growth. READ MORE
Sector watch: Auto
 
We expect automobile sales in February 2018 to remain buoyant as they will continue to benefit from the low base caused by demonetisation last year, although Y-o-Y growth numbers will not entirely mirror the preceding month’s trend, considering that February 2017 was a month of recovery across segments. Besides, the lesser number of despatch days available for original equipment manufacturers (OEMs) in February 2018 to supply various models to their dealers will cause a M-o-M decline in sales volume. 
 
We expect market leader Hero MotoCorp to report 12% sales growth while TVS Motor Company is likely to register close to 18% growth supported by strong exports and three-wheeler sales. Bajaj Auto’s launch of Discover bike model will aid two-wheeler sales while its three- wheeler and export volume continues to do well. In the passenger car segment, we expect market leader Maruti Suzuki India to report 8% Y-o-Y growth in sales, backed by the popularity of last year’s launches.
 
Source: Nirmal Bang report
Sectoral Watch: Nifty Bank down over 1%


Self-proclaimed Bitcoin inventor accused of swindling $5-bn cryptocurrency

Craig Wright, the self-proclaimed inventor of bitcoin, is accused of swindling more than $5 billion worth of the cryptocurrency and other assets from the estate of a computer-security expert. Wright, who claimed in 2016 that he created the computer-based currency under the pseudonym Satoshi ‎Nakamoto, allegedly schemed to use phony contracts and signatures to lay claim to bitcoins mined by colleague Dave Kleiman, another cryptocurrency adherent, who died in 2013, according to a lawsuit filed by Kleiman’s brother. READ MORE
Rupee Check

Falling for the third straight session, the rupee weakened by 23 paise to 65.10 against the US dollar to hit its three-month low in opening trade at the forex market on Wednesday.
 
The dollar firmed up against select global currencies as US Federal Reserve Chairman Jerome Powell's upbeat views on the economy bolstered bets on further Fed interest rate hikes this year.
Voltas to benefit from early onset of summer; AC business to drive growth

The early onset of summer, the launch of inverter window air-conditioners (ACs) and potential benefits accruing from Budget proposals have put Voltas in the spotlight. The market seems to have had an inkling, given the Voltas stock was up over 6 per cent in the last few days. READ MORE

Tailwind ahead for M&M Financial Services as asset quality improves

Mahindra and Mahindra Financial Services (M&M Financial) reported a good December quarter (Q3) because of growth in its core business, led by an improvement in asset quality. Besides a 44 per cent year-on-year (y-o-y) surge in net interest income, its non-performing assets (NPAs) declined in Q3. READ MORE
Market Check

 
S&P BSE Sensex 34,157.82 -0.55%
 
Nifty 50 10,486.95 -0.64%
 
S&P BSE 200 4,588.57 -0.49%
 
Nifty 500 9,245.35 -0.61%
 
S&P BSE Mid-Cap 16,524.34 -0.46%
 
S&P BSE Small-Cap 18,017.68 -0.40%

Edelweiss on Ambuja Cement - ACC merger deferrment news

Ambuja Cement (ACEM) has put on hold its plan to merge with 50.1% subsidiary ACC. Meanwhile, an arrangement to trade materials and services with ACC to maximise synergies has been approved. The latest communiqué does not quantify the value or timeline of such synergies versus an initial claim of USD120-150mn p.a. (ACC and ACEM combined over two years; mentioned as one of the rationales for restructuring undertaken in July 2013 and implemented in August 2016).

While conservatively we had not factored in synergy benefits in our estimates, putting the merger on back burner is nonetheless disappointing as it was envisaged to expedite accrual of claimed synergies. With limited visibility on merger, we now value ACEM’s stake in ACC at 30% holdco discount (20% earlier) even as we continue to value ACEM and ACC at 14x CY19E EV/EBITDA. Maintain ‘HOLD’ with revised target price of Rs 280 (Rs 290 earlier)
News Watch Another loan default case: Corporation bank reports Rs 68 mn-fraud to CBI

The Central Bureau of Investigation (CBI) has booked an auto dealer in Jamshedpur for allegedly defrauding the Corporation Bank to the tune of Rs 67.7 million (Rs 6.77 crore). READ MORE
PACL case: Sebi extends deadline till March 31 for filing refund claims

Markets regulator Sebi today extended the deadline till March 31 for 'certain' investors of PACL Group to submit their claims for refund of money invested in the company's illegal investment schemes. READ MORE
News Alert: INX Media case: Karti Chidambaram arrested by CBI in Chennai, say reports

Karti Chidambaram, businessman and the son of former finance minister P Chidambaram, was arrested by the Central Bureau of Investigation (CBI) on Tuesday in Chennai in connection with the INX Media case, news channels reported. READ MORE

BSE Smallcap: Gitanjali, JP Infratech among top losers, Graphite top gainer


BSE Midcap: Vakrangee, IDBI among top losers, Biocon top gainer


IDBI Bank stock plunges 5%


PNB stock slips nearly 5%


Sectoral Trend


PSU Banks slip


Sensex top gainers and losers


Index watch

Index Current Pt. Change % Change
 
S&P BSE SENSEX 34,111.87 -234.52 -0.68
 
S&P BSE SENSEX 50 10,938.16 -79.54 -0.72
 
S&P BSE SENSEX Next 50 33,660.53 -341.04 -1.00
 
S&P BSE 100 10,835.24 -83.91 -0.77
 
S&P BSE Bharat 22 Index 3,578.43 -33.11 -0.92

Market at open
 
At 9:17 am, the S&P BSE Sensex was trading at 34,113 down 232 points while the broader Nifty50 was ruling at 10,472 down 81 points.
No transaction fee on cross currency F&O derivatives trade, says NSE

Leading bourse NSE will not levy any transaction fee on the trades done in cross currency derivatives for three months starting on Tuesday, in order to encourage active participation in such contracts. CLICK HERE FOR FULL STORY
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 34,238.05 -108.34 -0.32
 
S&P BSE SENSEX 50 11,017.70 -30.36 -0.27
 
S&P BSE SENSEX Next 50 34,001.57 -244.84 -0.71
 
S&P BSE 100 10,919.15 -37.65 -0.34
 
S&P BSE Bharat 22 Index 3,611.54 -23.26 -0.64

(Source: BSE)
STOCKS IN NEWS

HDFC QIP floor price set at Rs 1,824.63 apiece. Panel will consider QIP issue price on March 5.

Cipla partnered with Roche Pharma India to create greater access to key medicines.

DLF’s subsidiary emerged as the highest bidder for 11.76-acre Gurugram land at Rs 1,500 crore.

Kridhan Infra acquired 31.5% stake in Vijay Nirman.

Sadbhav Infrastructure Projects declared lowest bidder for Rs 1,047 crore NHAI order.

Larsen & Toubro to sell up to 2% stake, in L&T Infotech to achieve the minimum public shareholding.

Bharat Forge completes divestment of its shareholding in Alstom Bharat Forge Power to GE.

ABC India receives order of Rs 142cr from BHEL for Multimodal Transportation of Export Project Cargo.

Atlas Cycles manufacturing activity at Sonepat unit has been temporarily suspended may be closed after re-assessing the situation

Reliance Industries may shut down KG basin’s MA Field by Oct on falling output.

BPCL In talks to sell stake in Bina refinery. National oil firms of Oman, Kuwait, Abu Dhabi may buy upto 24% stake.

A consortium of Dalmia Bharat and Bain Piramal Resurgence Fund emerged the top bidder for Binani Cement, trumping UltraTech Cement, with a Rs 6,700-crore offer that will see banks getting all their money back, challenging the assertion that bankers will face losses in every bankruptcy resolution case.
 
Singaporean sovereign wealth fund GIC has agreed to invest around Rs 2,600 crore in real estate firm Prestige Estates' subsidiary Exora Business Park for a consideration of up to 40% stake.

(Source: Nirmal Bang report)
News Watch Nirav Modi's Firestar Diamond files for bankruptcy as PNB fraud hits $2 bn

The international jewelry business that's part of the empire controlled by Nirav Modi, a billionaire accused of masterminding India’s biggest bank fraud, has filed for bankruptcy in the US just as the Indian lender at the heart of the scam revised up its fraud estimate. READ MORE


Trading volumes on SGX in sync with FII flows into the domestic market

The measures taken by domestic bourses to put an end to offshore trading of domestic securities could dent foreign institutional investor (FII) flows into Indian capital markets. Historical data suggests a positive correlation between FII inflows in India and the volume of Nifty contracts traded on the Singapore Stock Exchange (SGX). High portfolio flows into Indian markets have been accompanied by an increase in trading volumes in Nifty contracts at the SGX. READ MORE
Today's picks: From Tata Motors to Vedanta, hot stocks to watch on Tuesday

Tata Motors
Current price: Rs 373
Target price: Rs 367
Keep a stop at Rs 377 and go short
Add to the position between Rs 368 and Rs 369
Book profits at Rs 367

CLICK HERE FOR MORE

Hold Nifty longs for target of 10,700-10,750: HDFC Securities

Nifty Outlook: Yesterday, Nifty failed to surpass the previous top resistance of 10638, to close at 10554. Yesterday’s fall from the higher levels seems like a regular profit booking, which does not violate the probability of extending the pullback in the Nifty towards the next target of 10700-10750. Last week, Nifty formed bullish candlestick pattern known as “Dragonfly Doji” on the weekly charts. This pattern signals indecision among traders. It's formed when the security's high, open, and close prices are the same. The long lower shadow suggests that the forces of supply and demand are nearing a balance and that the direction of the trend may be nearing a major turning point. There is strong support at 10500 levels, around which Nifty should be bought into, with the stop loss of 10450. READ MORE

Interview of the day: Higher volatility to persist due to fiscal slippage, says Pankaj Sharma

Bonds do not like fiscal indiscipline and this is reflected in the rise in yields, says PANKAJ SHARMA, chief investment officer (fixed income), DSP BlackRock Mutual Fund. A reversal in the interest rate stance may happen sooner than later, he tells Ashley Coutinho in an interview. READ MORE
 
News Watch Check NPAs above Rs 500 mn for possible fraud, alert CBI: Govt tells banks

Jolted by the PNB fraud, the finance ministry on Tuesday directed managing directors of public sector banks to examine NPA accounts of more than Rs 500 million for possible fraud and report any cases of wilful default to the CBI. The ministry also set a 15-day deadline for PSBs to put in place an effective system to address rising operational and technological risks. These directions are part of the reforms that the government had packaged with the recapitalisation plan for banks. READ MORE
HG Infra Engineering's Rs 4.6 billion IPO subscribed 44 times

HG Infra Engineering's Rs 4.6-billion IPO was subscribed 44 times a day before its close. Bulk of the subscription so far has come from retail investors. HG Infra is a construction firm with a focus on road projects. The price band for the IPO is Rs 263 to Rs 270 per share. CLICK HERE FOR MORE
Top trading ideas for the day

BUY NCC 
CMP: Rs 130.35
TARGET: Rs 145
STOP LOSS: Rs 122

The stock has been in consolidation for quite some time moving in the range of 123 and 128 levels and now has given a breakout with a positive candle pattern in the daily chart.
 
The chart looks attractive with potential to rise for further upward targets in the coming days. The indicators has shown positive bias with the RSI showing a trend reversal and has signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 145 keeping a stop loss of 122. CLICK HERE TO READ MORE
MARKET COMMENT: Amar Ambani, partner and head of research, IIFL

Federal Reserve Chairman Jerome Powell’s optimism on the US economy meant the possibility of four rate hikes this year. At least that is the market-wide interpretation for now. Bond yields rose higher while stocks came tumbling down. Back home, GST revenue collections for January dropped marginally compared to December and stood at Rs 8,6318 crore. Exit polls have predicted a comfortable win for BJP in the North East. A choppy session is in store. GDP estimates and fiscal deficit numbers will be out today. HDFC QIP could result in heightened activity on the counter. US indices closed lower and Asian markets are moving with a negative bias.
Nifty outlook by Prabhudas Lilladher

The bounce back rally seems to be capped at crucial resistance level of 10,630 which is also where the 50DMA lies. Market would now witness a range of 10,300-10,650 levels for the coming days and a decisive move past any of these levels would decide the further move. The support for the day is seen at 10,500 while resistance is seen at 10,610.
Markets on Tuesday PNB tumbles over 12%, PSU bank index sheds 3.5%

Shares of Punjab National Bank (PNB) came under heavy selling pressure on Tuesday after the state-owned lender said the size of the fraud reported in one of its Mumbai branches could go up by Rs 13 billion. Its shares declined by Rs 13.6, or 12%, to close at Rs 98.35 apiece on the BSE, its lowest level in 20 months. Investors started dumping PNB shares ever since the bank disclosed a $2-billion fraud in its system. The stock has plummeted 50% from its January peaks. READ MORE
 

MARKET COMMENT: Angel Broking

We continue to believe that breaking above 10640 levels would extend this relief rally for the Nifty50 index towards 10700 – 10750; but it certainly does not change the broader picture, which turned in favor of the bears couple of weeks back. For a time being, traders should focus on these crucial levels and should position themselves accordingly.
MARKET COMMENT: Jayant Manglik, President, Religare Broking

The benchmark indices traded in a range on Tuesday taking cues from its Asian counterparts and ended on a negative note, as investor sentiments dampened after PNB revealed some additional unauthorized transactions after the Nirav Modi scam. Banking index was the biggest loser led by continues selling in the PSU stocks. Asian and European markets exhibited mixed trend ahead of Federal Reserve Chairman Jerome Powell’s highly anticipated first congressional testimony later in the day.

In the near term, the market participants will look forward to key economic data such as Nikkei Markit Manufacturing Purchasing Managers Index (PMI), Fiscal Deficit and Gross Domestic Product (GDP) scheduled to be released this week. We expect further consolidation in Smallcap and Midcap stocks before any upmove in the broader market indices
Markets on Tuesday

 
S&P BSE Sensex 34,346.39 -0.29%
 
Nifty 50 10,554.30 -0.27%
 
S&P BSE 200 4,611.34 -0.34%
 
Nifty 500 9,302.25 -0.33%
 
S&P BSE Mid-Cap 16,601.05 -0.50%
 
S&P BSE Small-Cap 18,090.13 -0.35%

Wall Street

On Wall Street, the markets turned south on Tuesday with the Dow, the S&P 500 and the Nasdaq falling more than 1 per cent each.
 
SGX Nifty

The SGX Nifty was at 10,498.50, down 0.60% from the previous close.
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