MARKET WRAP: Sensex dips 333 pts; PMI data, proposed FPI norms spook Street

Photo: Shutterstock.com
The benchmark indices ended nearly 1 per cent lower on Monday after India's manufacturing growth eased in August on softer domestic demand and on concerns over the escalation of the global trade war.

That apart, the sentiment was impacted by reports that the government and the capital market regulator Sebi are discussing fresh criteria to stop ‘dubious’ money flowing into the country — particularly, in the run up to the 2019 elections. The S&P BSE Sensex ended at 38,313, down 333 points while the broader Nifty50 index settled at 11,582, down 98 points.

In individual stocks, fast moving consumer goods giant Hindustan Unilever (HUL) slipped 4.5 per cent to Rs 1,700 levels on the BSE. That apart, shares of private banks such as ICICI Bank and Axis Bank also declined 2.3 per cent and 2.5 per cent, respectively. Car-maker Maruti Suzuki too settled 2.1 per cent lower at Rs 8904.

Among sectoral indices, the Nifty FMCG index settled over 2.5 per cent lower weighed by HUL and Britannia Industries.

India's manufacturing growth eases in August

Growth in India's manufacturing sector unexpectedly slowed in August as domestic demand softened, a private business survey showed on Monday.

Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, suggested the activity gauge fell to a three-month low of 51.7 from July's 52.3. READ MORE HERE

Global Markets

Global stock markets fell for a third straight day on Monday, hurt by worries over the escalation of trade disputes between world powers and a deepening sell-off across emerging market currencies.

European shares mostly opened lower while in Asia, MSCI's broadest index of shares outside Japan and Tokyo's blue-chip Nikkei shed about 0.7 per cent each. A holiday in the United States subdued trading activity.

(with Reuters inputs)


3:45 PM IST Nifty FMCG index ends 2.44% lower. Top losers: COMPANY LATEST PREV CLOSE LOSS() LOSS(%) HIND. UNILEVER 1699.10 1780.10 -81.00 -4.55 UNITED SPIRITS 609.65 630.25 -20.60 -3.27 DABUR INDIA 466.35 478.75 -12.40 -2.59 GODREJ INDS. 629.95 646.65 -16.70 -2.58 BRITANNIA INDS. 6565.85 6736.75 -170.90 -2.54

3:43 PM IST Nifty sectoral losers of the day

3:41 PM IST BSE Sensex: HUL, Axis Bank among top losers of the day

3:34 PM IST Market at close The S&P BSE Sensex ended at 38,313, down 333 points while the broader Nifty50 index settled at 11,582, down 98 points.

3:14 PM IST Vedanta Resources Chairman Anil Agarwal to take company private on Oct 1 Vedanta Resources Plc Chairman Anil Agarwal will take the London-listed miner private on October 1, after the holders of 26 per cent of shares agreed to sell to his family trust Volcan Investments.   Volcan now holds or has received acceptances for 92.31 per cent of Vedanta's shares, it said. READ MORE

3:11 PM IST Bumper IPO year continues: 11 cos approach Sebi in Aug to raise Rs 70 bn As many as 11 firms, including AGS Transact Technologies and ASK Investment Managers, have approached capital market regulator Sebi in August to raise over Rs 70 billion through IPOs largely to fund their expansion projects and working capital requirement. READ MORE

3:01 PM IST India manufacturing growth eases in August on softer domestic demand: PMI Growth in India's manufacturing sector unexpectedly slowed in August as domestic demand softened, a private business survey showed on Monday. The activity gauge fell to a three-month low of 51.7 from July's 52.3. Analysts polled by Reuters had expected growth to pick up, forecasting a reading of 52.8. READ MORE

2:45 PM IST LIC board to meet on Tuesday to decide raising stake in IDBI Bank to 51% The LIC board will meet Tuesday to decide on the modalities for increasing stake in debt-ridden IDBI Bank to 51 per cent, a move that will provide the insurance behemoth entry into the banking space.   The board will discuss timeline for the open offer, board-level appointments and future strategy for revitalising IDBI Bank, sources said. READ MORE

2:31 PM IST Coffee Board pegs crop loss due to rains in South India at 82,000 tonnes The Coffee Board, under the Ministry of Commerce, has estimated a crop loss of around 82,000 tonnes due to heavy rains in the traditional coffee tracts across South India. Industry representatives, however, believe that these losses may not affect prices -- which are decided on the basis of international demand and supply -- as global supply is already more than the demand at present. READ MORE

2:16 PM IST Pharma funds make a comeback; now rises 17.3% for a one-year period The rally in pharmaceutical stocks owing to the rupee depreciation and easing regulatory environment in the US has boosted the returns of mutual fund (MF) schemes that invest in this sector. Pharma funds, which had been laggards for many months now, are now up 17.3 per cent for a one-year period, outperforming infrastructure and banking funds that gave returns of 2.3 per cent and 9.8 per cent, respectively, show data from Value Research. READ MORE

2:02 PM IST Market Check Index Current Pt. Change % Change   S&P BSE SENSEX 38,597.84 -47.23 -0.12   S&P BSE SENSEX 50 12,224.83 -5.98 -0.05   S&P BSE SENSEX Next 50 35,745.65 +88.91 +0.25   S&P BSE 100 12,016.43 -0.54 0.00   S&P BSE Bharat 22 Index 3,748.31 -2.78 -0.07 (Source: BSE)

1:46 PM IST Biggest bond inflow in 7 months fails to rescue rupee; headwinds to persist Global investors in August bought the most Indian bonds in seven months, showing signs of returning to a market they’d abandoned for the better part of 2018. The inflow brought no joy for currency traders as the rupee hit multiple new lows in the past two weeks. READ MORE

LIVE UPDATES

Nifty FMCG index ends 2.44% lower. Top losers:

COMPANY LATEST PREV CLOSE LOSS() LOSS(%)
HIND. UNILEVER 1699.10 1780.10 -81.00 -4.55
UNITED SPIRITS 609.65 630.25 -20.60 -3.27
DABUR INDIA 466.35 478.75 -12.40 -2.59
GODREJ INDS. 629.95 646.65 -16.70 -2.58
BRITANNIA INDS. 6565.85 6736.75 -170.90 -2.54

Nifty sectoral losers of the day


BSE Sensex: HUL, Axis Bank among top losers of the day


Market at close

The S&P BSE Sensex ended at 38,313, down 333 points while the broader Nifty50 index settled at 11,582, down 98 points.
Vedanta Resources Chairman Anil Agarwal to take company private on Oct 1

Vedanta Resources Plc Chairman Anil Agarwal will take the London-listed miner private on October 1, after the holders of 26 per cent of shares agreed to sell to his family trust Volcan Investments.
 
Volcan now holds or has received acceptances for 92.31 per cent of Vedanta's shares, it said. READ MORE

Bumper IPO year continues: 11 cos approach Sebi in Aug to raise Rs 70 bn

As many as 11 firms, including AGS Transact Technologies and ASK Investment Managers, have approached capital market regulator Sebi in August to raise over Rs 70 billion through IPOs largely to fund their expansion projects and working capital requirement. READ MORE

India manufacturing growth eases in August on softer domestic demand: PMI

Growth in India's manufacturing sector unexpectedly slowed in August as domestic demand softened, a private business survey showed on Monday.

The activity gauge fell to a three-month low of 51.7 from July's 52.3. Analysts polled by Reuters had expected growth to pick up, forecasting a reading of 52.8. READ MORE
LIC board to meet on Tuesday to decide raising stake in IDBI Bank to 51%

The LIC board will meet Tuesday to decide on the modalities for increasing stake in debt-ridden IDBI Bank to 51 per cent, a move that will provide the insurance behemoth entry into the banking space.
 
The board will discuss timeline for the open offer, board-level appointments and future strategy for revitalising IDBI Bank, sources said. READ MORE

Coffee Board pegs crop loss due to rains in South India at 82,000 tonnes

The Coffee Board, under the Ministry of Commerce, has estimated a crop loss of around 82,000 tonnes due to heavy rains in the traditional coffee tracts across South India. Industry representatives, however, believe that these losses may not affect prices -- which are decided on the basis of international demand and supply -- as global supply is already more than the demand at present. READ MORE

Pharma funds make a comeback; now rises 17.3% for a one-year period

The rally in pharmaceutical stocks owing to the rupee depreciation and easing regulatory environment in the US has boosted the returns of mutual fund (MF) schemes that invest in this sector. Pharma funds, which had been laggards for many months now, are now up 17.3 per cent for a one-year period, outperforming infrastructure and banking funds that gave returns of 2.3 per cent and 9.8 per cent, respectively, show data from Value Research. READ MORE

Market Check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,597.84 -47.23 -0.12
 
S&P BSE SENSEX 50 12,224.83 -5.98 -0.05
 
S&P BSE SENSEX Next 50 35,745.65 +88.91 +0.25
 
S&P BSE 100 12,016.43 -0.54 0.00
 
S&P BSE Bharat 22 Index 3,748.31 -2.78 -0.07

(Source: BSE)
Biggest bond inflow in 7 months fails to rescue rupee; headwinds to persist

Global investors in August bought the most Indian bonds in seven months, showing signs of returning to a market they’d abandoned for the better part of 2018. The inflow brought no joy for currency traders as the rupee hit multiple new lows in the past two weeks. READ MORE

Valuations, premium, earnings: India stock market surge explained in charts

Another thousand-point milestone is within reach for India’s benchmark equity index.
 
Following the drubbing earlier this year, the S&P BSE Sensex is nearing the 39,000 level, the gauge’s third round-number mark since surpassing its life-time peak two months ago -- a rally that’s helped the gauge cement the tag of Asia’s best performer this year. READ MORE

MARKET COMMENT Indranil Sen Gupta, India Economist, DSP Merrill Lynch (India)

The good news is that higher-than-anticipated GDP growth, at 8.2% (7.6% BoFAMLe, 7.8% consensus) re-affirms India's position as the fastest growing EM. We raise our FY19 growth forecast by 20bp to 7.4% in GVA terms. The reality is that high growth is largely driven by the base effects of last year's dip to 5.6% due to demonetiation and GST implementation.

Although base effects have driven growth to our estimated ‎8% potential this quarter, it is still 6.9% averaging across June 2017 and 2018. Not surprisingly, investment has slipped to 28.8% from 29.1% in March. Finally, we worry that rising lending rates will hit growth in the busy industrial season after October as base effects fade.
Devangshu Datta Bullish on consumption

A comparison of foreign portfolio investor (FPI) and mutual fund portfolios can yield some interesting insights into the differences in their thought processes. FPIs have sold Rs 32 billion in calendar 2018, while domestic institutional investors (not just funds) have bought Rs 665 billion. The data reveals obvious differences in attitude.
 
There are more subtle differences in approach, too. Fund research house Value Research has some details of aggregated portfolios at end-June. READ MORE

Top gainers in BSE 500:

COMPANY PRICE() CHG() CHG(%)
NETWRK.18 MEDIA 54.20 6.65 13.99
MAHINDRA CIE 295.00 30.35 11.47
H D I L 35.15 2.40 7.33
HIND.CONSTRUCT. 15.12 0.91 6.40
ENGINEERS INDIA 135.90 7.80 6.09
» More on Top Gainers
MARKET COMMENT Gautam Chhaochharia, head of India research, UBS Securities

The markets are worried that GST collections are falling a little short of the monthly run-rate implied by budgeted numbers, based on our investor discussions. However, using just the monthly run-rate is fundamentally wrong, in our view. The festive season ahead in September and October should be bigger months and will give better clarity. There may anyway be a fiscal shortfall of 20-30bp of GDP assuming 12-15% YoY growth from August onwards.

Our discussions in Delhi suggest that the government views direct tax collections as potentially ahead of budget. The number of returns filed under the GST also shows medium-term potential. Formalisation seems to have led to some improvement in tax compliance, as indicated by our survey responses

GAUTAM CHHAOCHHARIA

HDFC Securities on EIL

We  expect EIL to deliver revenue, EBITDA and PAT CAGR of 23%, 16% and 16%, respectively,  in  FY18-20E. Currently, EIL  trades at ~16x FY20E EPS. We recommend  Engineers  India (EIL) as a Buy at CMP of Rs 128 and add on dips to  Rs 117 with sequential price targets of Rs 144 and Rs 165 over the next
4-6 quarters
Nomura on PMI numbers

The moderation in headline PMI and price sub-indices support our view that the cyclical recovery likely peaked in Q2 while higher oil prices, tighter financial conditions and external and political uncertainty will constrain demand. The weaker rupee is not yet reflected in higher input costs, although this may become visible with a lag. However, we expect weaker demand to at least partly offset any increase in costs.

Given this trajectory, we expect the Reserve Bank of India to pause in its October policy review meeting (65% probability of no change; 35% chance of a hike), after delivering two consecutive hikes for a cumulative 50bp
Pharma shares extend rally; Dr Reddy's, Sun Pharma hit 52-week high

Shares of pharmaceutical companies continued their upward journey with Nifty Pharma index quoting higher for 11 out of past 14 trading days on the National Stock Exchange (NSE).
 
Sun Pharmaceutical Industries, Dr Reddys Laboratories, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Abbott India, Merck, Sanofi India and GlaxoSmithKline Pharmaceuticals were among 11 stock that hit their respective 52-week highs on Monday. READ MORE
COMMENT Dhananjay Sinha, Head, Institutional Research, Economist and Strategist, Emkay Global

The rebound in GDP growth is aligned with our reflationary recovery thesis, which incorporates the fiscal multiplier impact, favorable base effect, unwinding of GST and demonetization shocks and the revival in external trade. The impact of this reflationary recovery reflects in the strong Q1FY19 GDP print of 8.2% yoy, the results of consumer sector companies and the rapid pace of retail lending. We believe that this multiplier effect will gain pace in the foreseeable future before fading out in 2-3 quarters. Accordingly, we project FY19 GDP growth of 7.2-7.4%
Kotak Securities on NMDC

NMDC has revised prices of domestic iron ore thrice YTD, adding up to Rs300 and Rs350 per tonne for iron ore fines and lump ore to Rs2,960/tonne and Rs3,350/tonne, respectively. We believe that the recent hike in the iron ore prices is backed by 4% month on month increase in international iron ore
prices, rupee depreciation and the surge in pellet prices (~4 years high / +25% YoY).

Though, we continue to remain cautious on the outlook of iron ore prices for the medium to long term perspective. But, expect it to remain strong in the coming months, as Odisha miners has also hiked prices in the range of Rs250-300/tonne.
Stock idea from Anand Rathi

We initiate coverage on Khadim India with a Buy rating and a target price of Rs 976 based on 16x FY20e EV/EBITDA. We believe it is best positioned to benefit from the domestic footwear industry shifting towards branded footwear. We anticipate it reporting a 19% revenue CAGR over FY18-20 driven respectively by its dual strategy of expanding its retail network (a 16% revenue CAGR) and its distribution channel (a 25% revenue CAGR). Driven by operating leverage kicking in and lower interest costs, we expect Khadim to deliver a 28% PAT CAGR over FY18-20.
Nomura on Coal India

On our FY20F adjusted earnings (adding back OB removal provisioning to EPS and EBITDA), the stock trades at 8.2x P/E (EPS: Rs 30.4) and 4.8x EV/EBITDA (9.4x P/E and 5.2x EV/EBITDA on reported earnings); on our FY19F dividend of INR23/share, the stock offers a yield of 8%. We maintain our Buy rating on the stock. 
Edelweiss on Pidilite

Our recent interaction with Pidilite’s (PIDI) top management reaffirms our confidence in its ability to gain market share and create future growth drivers. The company expects the core portfolio (two-thirds) to grow 1–2x GDP, growth portfolio at 2–4x GDP, and pioneer portfolio to touch INR1bn in three years (implying 13–15% growth). Waterproofing segment has huge opportunity landscape (paint-to-waterproofing ratio at 1:15 vis-à-vis 1:6 globally).

We value other market leaders such as HUL and Britannia at 55x FY20E EPS each. Given strong demand recovery, PIDI’s market leadership and NPDs we are raising the target multiple to 50x (45x earlier) that yields a revised target price of Rs 1,334 (Rs 1200 earlier). We will however closely watch the VAM price trajectory. Maintain ‘BUY’.
Cracking the MF code in rural India: Mahindra MF looks to expand markets

Somewhere close to Jalandhar, the chief executive of a fund house is trying to explain the patriarch of a wealthy Punjabi joint family the concept of mutual funds (MF). At first, this 50-year old mistakes the CEO for a share dalal or an agent of sorts. READ MORE

Markets at noon

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,736.69 +91.62 +0.24
 
S&P BSE SENSEX 50 12,264.34 +33.53 +0.27
 
S&P BSE SENSEX Next 50 35,855.97 +199.23 +0.56
 
S&P BSE 100 12,055.14 +38.17 +0.32
 
S&P BSE Bharat 22 Index 3,757.99 +6.90 +0.18

Real estate stocks trade weak after SC stays construction in some states
 
Shares of real estate companies were trading lower by up to 3% in an otherwise range-bound market after the Supreme Court stayed construction in some states and union territories (UTs) till they frame policy on waste management.
 
Sunteck Realty, DLF, Indiabulls Real State, Mahindra Lifespace Developers, Ajmera Realty, Puravankara and Kolte Patil Developers were trading lower in the range of 1% to 3% on the BSE. Oberoi Realty and Godrej Properties, however, were trading higher by 3% and 1%, respectively. READ MORE
Indian equities are off to best start to a financial year since Modi win
 
Indian equities are off to the best start to a financial year since 2014-15, when Narendra Modi-led National Democratic Alliance (NDA) government came to power. So far this fiscal year, the benchmark Sensex has gained 16.3 per cent, thanks to sharp gains in key stocks. In comparison, the index for the performance of 30 blue-chip stocks had gone up 19 per cent during the first five months of 2014-15.
 
The benchmark indices are currently hovering around their lifetime highs. Also, India is already among the best-performing markets globally this fiscal year. READ MORE


ANALYSIS Many reasons why Bajaj Finance stock will remain an outperformer
 
Trading at about Rs 11 apiece and with thin volumes, Bajaj Finance was a neglected, unfavoured stock 10 years back.
 
Today, just a few points shy of the Rs 3,000-mark, the country’s leading consumer goods lender has transformed itself as the most sought-after scrip in the financials space. What’s more, despite the recently gone by June quarter (Q1) being a tough one for the non-banking finance companies (NBFCs) due to some instability in asset quality and adoption of new accounting norms, Bajaj Finance outperformed the pack maintaining its industry-best return on assets. READ MORE
Balkrishna Ind falls 8% after board approves capex plan of Rs 17 billion
 
Balkrishna Industries dipped 8% to Rs 1,261 on the BSE in early morning trade after the company said its board approved capital expenditure (capex) plan of Rs 17 billion in US and India. The entire capex would be funded via a mix of debt and internal accruals.
 
The stock was trading lower for the third straight trading sessions, down 14% from its all-time high of Rs 1,467 recorded on Wednesday, August 29, 2018, in intra-day trade. It had outperformed the market in past one month by surging 20% as compared to 3.7% rise in the S&P BSE Sensex till Tuesday. READ MORE
Web Exclusive How to hedge your market exposure
 
What do we understand by the word hedge? The word hedge refers to protection against unfavorable price movements. It can involve protection against downsides if you are long on the market and protection against upsides if you are short in the market. In other words, hedging is nothing but an insurance against the volatility of your portfolio. You incur a cost to hedge but that also protects you against deep losses in a worst-case scenario. There are 3 ways to hedge your exposure in the market when you are holding on to equity market positions as an investor or as a trader. READ MORE
Ashok Leyland, Bajaj Auto gain; Maruti Suzuki falls post August sales

Shares of select automobiles companies such as Ashok Leyland, Bajaj Auto, and Eicher Motors were trading higher by up to 4% on Monday after reporting good vehicle sales in the month of August. READ MORE

Rupee slide nearing its end, RBI likely to step in, say economists

The rupee could be hovering around the last leg of its fall, but depreciation pressure would continue a little longer, economists and currency experts have said. The rupee should consolidate around the present level, but global sentiments could push it back to 72-72.5 a dollar level. READ MORE

JM Financial on ABB

The company reported strong results in 2QCY18 as sales/EBTIDA grew by 22%/33% due to execution pickup in HVDC project and nascent revival in process industries. Given a 25% correction in stock price from peak, PE multiples have declined sharply to 47x 1-year forward, a 35% discount to its median, while earnings are expected to grow at robust pace of 24% CAGR over CY17-20E. We upgrade the stock from SELL to BUY as we revise our TP to INR1,500, based on 40x CY20E EPS (1.6x PEG and 45% discount to average PE)
Stocks in news 
 
 
·         The U.S. FDA completed auditing Sun Pharma's Halol plant with no observations, two people familiar with the matter to BloombergQuint. 
 
·         Larsen & Toubro proposed to sell 59 lakh shares, which is 3.41% of the paid-up equity capital of L&T Infotech Ltd. through the stock exchange mechanism. 
 
·         Godrej Consumer Products Ltd., through its subsidiary, has divested its entire stake in its United Kingdom arm. 
 
·         Idea Cellular Ltd. changes its name to ‘Vodafone Idea limited’ with effect from Aug. 31. 
 
·         Ramky Infrastructure to sell 100% of its stakeholding in NAM Expressway Ltd. to Singapore based Cube Highways Pvt. Ltd. for Rs 140 crore, along with all its liabilities. 
 
·         HCL Technologies partners with ScienceLogic to bring artificial intelligence operations to its customers. 
 
·         LT Foods board approved the investment of Rs 140 crore by India Agri Business Fund II in its wholly owned subsidiary Nature Bio Foods Ltd.
 
·         Vedanta Ltd said that KK Kaura has resigned from the post of the interim chief executive officer, with effect from Aug. 30. 
 
·         PNB is looking to sell its entire holding of 0.11% in the National Stock Exchange and is expecting to raise over Rs 48 crore by divesting the stake. 
 
·         Wipro Ltd. bagged a deal which was valued at over $1.5 billion from Alight Solutions LLC. This is the company’s biggest deal so far.
 
·         State Bank of India hikes benchmark lending rate by 0.2% across all tenors up to three years. 
 
·         MOIL revises prices of different grades of Manganese Ore and other products, effective Sept 1. 
 
·         V-Mart opens three new fashion stores, one in the state of Bihar and other two in the state of Assam. This takes the total number of stores to 184.
 
·         Hindustan Construction Company’s board to meet on Sept. 05 to consider fund raising by the issue of equity shares or other securities.


(Source: IIFL report)
Market Check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,794.93 +149.86 +0.39
 
S&P BSE SENSEX 50 12,279.23 +48.42 +0.40
 
S&P BSE SENSEX Next 50 35,866.66 +209.92 +0.59
 
S&P BSE 100 12,068.18 +51.21 +0.43
 
S&P BSE Bharat 22 Index 3,771.89 +20.80 +0.55

Stock Alert Wipro surges 9% on winning over $1.5 billion deal from Alight Solutions
 
Shares of Wipro has surged 9% to Rs 328 on the BSE in early morning trade after the company on Sunday said that it has won its largest contract to date from US-based human resources (HR) and financial solutions company Alight Solutions LLC.
 
The stock was trading close to its 52-week high of Rs 335 touched on January 16, 2018, on the BSE in intra-day trade. READ MORE


INTERVIEW OF THE DAY Our June 2019-end target for Nifty50 index is 11,892: Saion Mukherjee
 
The markets have been gaining ground amid a weakening rupee over the past few weeks. SAION MUKHERJEE, head of India equity research at Nomura, tells Puneet Wadhwa that though it seems unlikely that just the current rupee depreciation can trigger a sell-off, a substantial depreciation leading to higher inflation/monetary tightening could hurt growth, and hence markets as well. Click here for full interview


Nifty sectoral trend


BSE Sensex opening gainers and losers


Market at open
 
At 9:15 AM, the S&P BSE Sensex was trading at 38,798, up 153 points while the broader Nifty50 was ruling at 11,712, up 31 points.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,763.10 +118.03 +0.31
 
S&P BSE SENSEX 50 12,272.13 +41.32 +0.34
 
S&P BSE SENSEX Next 50 35,706.80 +50.06 +0.14
 
S&P BSE 100 12,053.94 +36.97 +0.31
 
S&P BSE Bharat 22 Index 3,755.86 +4.77 +0.13

NEWS ALERT Rupee opens firm at 70.78 per dollar
Technical calls by Prabhudas Lilladher
 
BUY LARSEN TOUBRO
CMP: Rs 1,369.55
TARGET: Rs 1,480
STOP LOSS: Rs 1,310
 
The stock has been consolidating near 1350 levels for quite some time and currently has given a breakout above that range and looks promising for further upside in the coming days. The trend has been positive and with the RSI on the rise, a positive bias has been maintained. With good consistent volume activity witnessed, we recommend a buy in this stock for an upside target of 1480 keeping a stop loss of 1310.
 
Nifty outlook by Prabhudas Lilladher:
 
Market continues to show sideways movement with selective stocks in rotation holding the Nifty level. With rupee continuing to show weakness, has given an impetus to Pharma and IT stocks. The support for the week is seen at 37,950/11,460 while resistance is seen at 39,150/11,840. Bank nifty would have a range of 27,370-28,580. Infra sector has now set into momentum with Larsen looks promising from here. 
Top trading ideas by Angel Broking:
 
Wockhardt
View – Bullish
Last Close – Rs 663.90
 
The ‘Pharma’ index has clocked whopping gains over the past three months, but ‘Wockhardt’ remained subdued and has clearly underperformed its larger peers by a fair margin. Now in last three weeks, the stock has made some attempts to show its existence. We can now observe a series of ‘Higher Top Higher Bottom’ formation with ‘RSI-Smoothened’ indicating further strength in prices. Hence, we expect this to have some catch-up rally to its other peers. The potential upside target can be foreseen at Rs 730 and stop loss at Rs 629.
Outlook on Nifty by Angel Broking:
 
The index continues to enjoy its Bull Run despite some in between hiccups. After the previous week’s consolidation, we had a head start on Monday by opening higher and in a couple of days, hastening beyond milestones of 11,600 and 11,700. However, traders once again chose to take some money off the table and hence, the index came off a bit from higher levels thereafter. Although, we did not see a significant move on Friday in terms of gains; it was quite encouraging because index managed to hold its ground and showed some signs of recovery towards the fag end of the week. READ MORE
Top trading ideas by Devang Shah
 
JSPL - BUY
CLOSE – Rs 220.70
TARGET – Rs 230-240
 
JSPL closed the weekly in positive territory. It looks like the end of short-term correction. It managed to hold 20 DMA. Risk Reward is favourable to BUY at current levels. Its daily momentum indicators are in BUY. One can BUY with a stop loss of Rs-203 for the target of Rs-230-240 levels in short-term. Click here for more
Nifty outlook by Devang Shah
 
The short-term outlook for the market remains positive till Nifty trades above 11,171 levels and expecting targets in the range of 11,850- 12,000 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9,951 levels and expecting targets in the range of 12,500-12,800 levels in the medium term. READ MORE HERE
Rupee slumps 26 paise to close at historic low of 71 level
 
The rupee on Friday slumped by 26 paise breach the historic low of 71 level for the first time against the US currency due to firming crude oil prices and strong month-end demand from oil importers.
India's economy grew at a nine-quarter high of 8.2% in Q1FY19
 
India’s economy grew at a nine-quarter high of 8.2 per cent in Q1FY19, surpassing analyst expectations. As shown in Chart 1, GDP had grown by 7.7 per cent in Q4FY18.
 
Part of the surge in growth can be traced to a low base effect as economic activity was severely affected last year due to the goods and service tax (GST) and demonetisation. READ MORE
SGX Nifty
 
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 21 points or 0.18 percent. Nifty futures were trading around 11,750-level on the Singaporean Exchange.
Asian stocks dip on trade, emerging market woes
 
Asian stocks dipped on Monday on worries about further escalation of the US-China trade war and unstable emerging market currencies.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2 per cent while Japan’s Nikkei fell 0.4 per cent though trade could be subdued due to a US market holiday on Monday.
 
Trump said last week he is ready to implement the new tariffs as soon as a public comment period on the plan ends on Thursday, which would be a major escalation after it has applied already tariffs on $50 billion of exports from China.
Wall Street mixed

The S&P 500 ended flat while the Dow edged down and the Nasdaq closed higher in light trading on Friday as Canada and the United States concluded trade talks without resolution ahead of the Labor Day weekend.
 
The Dow Jones Industrial Average fell 22.1 points, or 0.09 per cent, to 25,964.82, the S&P 500 gained 0.39 points, or 0.01 per cent, to 2,901.52 and the Nasdaq Composite added 21.17 points, or 0.26 per cent, to 8,109.54.
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