Sensex ends 137 pts down, Nifty at 10,458 levels; PSU banks fall

Photo: Shutterstock.com
The benchmark indices ended marginally lower on Thursday afternoon amid thin trade.

The S&P BSE Sensex ended the day at 34,047, down 137 points while the broader Nifty50 index settled at 10,458, down 34 points.

Indian equity, forex and commodity markets will remain closed on Friday, March 2, 2018, on account of Holi.

Among sectoral indices, Nifty PSU Bank index fell 1.87% on Thursday led by a decline in the shares of Indian Bank, Canara Bank and Bank of India.

In the domestic market, economic growth recovered to a five-quarter high of 7.2 per cent during October-December, backed by strong manufacturing and investment activity as the disruption caused by the goods and services tax (GST) bottomed out. The robust third-quarter performance led to a marginal upward revision in the second advance estimate for 2017-18 to 6.6 per cent from 6.5 per cent in the first estimate, though it was still lower than the 6.75 per cent projected by the Economic Survey. The data came after the markets ended on Wednesday.

In the global markets, Asian stocks skidded on Thursday after comments from the Federal Reserve’s new chief rekindled fears about the pace of US monetary tightening this year, sending Wall Street tumbling for its worst performance in two years and lifting the dollar.

Fed Chairman Jerome Powell, in his first public appearance as head of the US central bank, vowed on Tuesday to prevent the economy from overheating while sticking with a plan to gradually raise interest rates.

That was enough to send investors out of stocks, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.35 per cent, while Japan’s Nikkei dropped 0.85 per cent.

(with Reuters inputs)

3:38 PM IST Top Sectoral loser: Nifty PSU Bank index

3:36 PM IST Sectoral Trend

3:34 PM IST Top Sensex gainers and losers

3:32 PM IST Markets at Close The S&P BSE Sensex ended the day at 34,047, down 137 points while the broader Nifty50 index settled at 10,458, down 34 points

3:19 PM IST ALERT: Indian equity, forex and commodity markets will remain closed on Friday, March 2, on account of Holi.

3:15 PM IST Sector watch: Auto The demand for auto components from domestic original equipment manufacturers (OEMs), especially high volume two-wheeler (2W) and passenger-vehicle (PV) industry which together constitute about two-third of overall ancillary industry size, has remained strong in Q3FY2018. Moreover, stellar growth in CV as well as tractor segment has further supported overall volume growth. According to an ICRA note on the industry, given the indicative trends, the growth momentum is expected to sustain in Q4FY2018 as well. This will be strongly supported by improved demand outlook in key end user segments as well as expected pickup in rural income. Going forward, pickup in infrastructure activity will further drive growth in construction & mining equipment as well as the tipper segment (classified under M&HCVs) (Source: ICRA report)

3:13 PM IST Fund flow tracker: January month flow update   India flows—listed funds turned net buyers in January. India saw inflows of US$3 bn, led by US$1.7 bn of non-ETF inflows and US$1.3 bn of ETF inflows. GEM funds saw higher inflows than India-dedicated funds. GEM funds saw US$1.7 bn of inflows (US$919 mn of ETF flows and US$745 mn non-ETF flows). India-dedicated funds saw US$821 mn of inflows, led by non-ETF inflows of US$579 mn.   Emerging market flows—China saw the highest inflows, US$9.2 bn, led by strong non-ETF flows of US$5.5 bn. Total FPI activity and EPFR activity showed similar trends for most of the countries in January. Country allocations—allocations to India and China constitute more than one-third of the average Asia ex-Japan fund portfolio. Allocation to India by Asia ex-Japanese funds declined to 11.8% in January from 13.6% a year ago. Fund allocation to India by GEM funds declined to 9.8% from 10.8% a year ago. Allocation by Asia ex-Japan non-ETF funds to India declined to 12.3% in January from 14.2% in January 2017. Allocation to India by GEM ETF funds increased to 9.4% in January from 9.3% a year ago. (Source: Kotak Securities report) foreign flows, Stock markets

3:10 PM IST Weight of cyclicals to go up in Nifty50 Effective April 2, Ambuja Cement, Aurobindo Pharma and Bosch will make way for Grasim Industries, Titan and Bajaj Finserv in Nifty 50. Consequently, the sectoral weight will increase in Consumer Discretionary (+82bps), NBFC (+61bps) and Cement (+60bps) at the expense of Auto (-55bps), Pharma (-47bps) and Private Bank (-34bps). Moreover, the number of financials will increase to 11 and their weight will marginally increase from 36.4% to 36.6% (Source: Elara Capital report)

3:08 PM IST Market check Index Current Pt. Change % Change   S&P BSE SENSEX 34,058.09 -125.95 -0.37   S&P BSE SENSEX 50 10,924.42 -35.10 -0.32   S&P BSE SENSEX Next 50 33,682.82 -208.28 -0.61   S&P BSE 100 10,825.16 -39.79 -0.37   S&P BSE Bharat 22 Index 3,579.61 -16.94 -0.47 (Source: BSE)

3:08 PM IST K R Choksey Institutional Research on VA Tech Wabag At Rs 550, the stock is trading at 14.2x on FY19E and 11.4x on FY20E of our earnings estimates. The stock has been historically trading at medium multiple of ~17x on 1 yr fwd and ~12x 2yr fwd P/E band. However, valuations improved at the time of NDA victory on the expectations of uptick in the order activity. We expect more wastewater treatment order to be announced before next election and hence, players like VA Tech Wabag are expected to benefit from this process. This, in turn, could improve valuations of the company and hence, valuing the company at 15x on FY20E earnings of Rs 48.1, we have arrived a target price of Rs 722, potential upside of 31% from Rs 550. We have ‘BUY’ rating on the stock.

3:05 PM IST Edelweiss on HUL We envisage HUL to be key beneficiary of anticipated rural recovery and herbal push. We estimate better-than-expected volume growth (trend too indicates the same) and with rural revival in the offing, we retain our target multiple of 47x and arrive at target price of rs 1,518 on FY20E EPS. Maintain ‘HOLD/Sector Performer’ since at the current market price, the stock offers limited upside

3:04 PM IST Kotak Securities on Indian economic growth Upward revision of CSO’s first advance estimate of Real GDP and GVA growth affirms visible signs of an underlying improvement in the economy. The pickup in the quarterly GVA growth was largely witnessed in manufacturing, construction and agriculture. We expect the economy to recover to 7.1% in FY2019. In the backdrop of a gradual recovery, we expect RBI to maintain status quo at least through 1HCY18 while closely assessing the upcoming inflation prints

LIVE UPDATES

Top Sectoral loser: Nifty PSU Bank index


Sectoral Trend


Top Sensex gainers and losers


Markets at Close

The S&P BSE Sensex ended the day at 34,047, down 137 points while the broader Nifty50 index settled at 10,458, down 34 points
ALERT: Indian equity, forex and commodity markets will remain closed on Friday, March 2, on account of Holi.
Sector watch: Auto

The demand for auto components from domestic original equipment manufacturers (OEMs), especially high volume two-wheeler (2W) and passenger-vehicle (PV) industry which together constitute about two-third of overall ancillary industry size, has remained strong in Q3FY2018. Moreover, stellar growth in CV as well as tractor segment has further supported overall volume growth.

According to an ICRA note on the industry, given the indicative trends, the growth momentum is expected to sustain in Q4FY2018 as well. This will be strongly supported by improved demand outlook in key end user segments as well as expected pickup in rural income. Going forward, pickup in infrastructure activity will further drive growth in construction & mining equipment as well as the tipper segment (classified under M&HCVs)

(Source: ICRA report)
Fund flow tracker: January month flow update
 
India flows—listed funds turned net buyers in January. India saw inflows of US$3 bn, led by US$1.7 bn of non-ETF inflows and US$1.3 bn of ETF inflows. GEM funds saw higher inflows than India-dedicated funds. GEM funds saw US$1.7 bn of inflows (US$919 mn of ETF flows and US$745 mn non-ETF flows). India-dedicated funds saw US$821 mn of inflows, led by non-ETF inflows of US$579 mn.
 
Emerging market flows—China saw the highest inflows, US$9.2 bn, led by strong non-ETF flows of US$5.5 bn. Total FPI activity and EPFR activity showed similar trends for most of the countries in January.

Country allocations—allocations to India and China constitute more than one-third of the average Asia ex-Japan fund portfolio. Allocation to India by Asia ex-Japanese funds declined to 11.8% in January from 13.6% a year ago. Fund allocation to India by GEM funds declined to 9.8% from 10.8% a year ago. Allocation by Asia ex-Japan non-ETF funds to India declined to 12.3% in January from 14.2% in January 2017. Allocation to India by GEM ETF funds increased to 9.4% in January from 9.3% a year ago.

(Source: Kotak Securities report)

foreign flows, Stock markets

Weight of cyclicals to go up in Nifty50

Effective April 2, Ambuja Cement, Aurobindo Pharma and Bosch will make way for Grasim Industries, Titan and Bajaj Finserv in Nifty 50. Consequently, the sectoral weight will increase in Consumer Discretionary (+82bps), NBFC (+61bps) and Cement (+60bps) at the expense of Auto (-55bps), Pharma (-47bps) and Private Bank (-34bps). Moreover, the number of financials will increase to 11 and their weight will marginally increase from 36.4% to 36.6%

(Source: Elara Capital report)
Market check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 34,058.09 -125.95 -0.37
 
S&P BSE SENSEX 50 10,924.42 -35.10 -0.32
 
S&P BSE SENSEX Next 50 33,682.82 -208.28 -0.61
 
S&P BSE 100 10,825.16 -39.79 -0.37
 
S&P BSE Bharat 22 Index 3,579.61 -16.94 -0.47


(Source: BSE)
K R Choksey Institutional Research on VA Tech Wabag

At Rs 550, the stock is trading at 14.2x on FY19E and 11.4x on FY20E of our earnings estimates. The stock has been historically trading at medium multiple of ~17x on 1 yr fwd and ~12x 2yr fwd P/E band. However, valuations improved at the time of NDA victory on the expectations of uptick in the order activity.

We expect more wastewater treatment order to be announced before next election and hence, players like VA Tech Wabag are expected to benefit from this process. This, in turn, could improve valuations of the company and hence, valuing the company at 15x on FY20E earnings of Rs 48.1, we have arrived a target price of Rs 722, potential upside of 31% from Rs 550. We have ‘BUY’ rating on the stock.
Edelweiss on HUL

We envisage HUL to be key beneficiary of anticipated rural recovery and herbal push. We estimate better-than-expected volume growth (trend too indicates the same) and with rural revival in the offing, we retain our target multiple of 47x and arrive at target price of rs 1,518 on FY20E EPS. Maintain ‘HOLD/Sector Performer’ since at the current market price, the stock offers limited upside
Kotak Securities on Indian economic growth

Upward revision of CSO’s first advance estimate of Real GDP and GVA growth affirms visible signs of an underlying improvement in the economy. The pickup in the quarterly GVA growth was largely witnessed in manufacturing, construction and agriculture. We expect the economy to recover to 7.1% in FY2019. In the backdrop of a gradual recovery, we expect RBI to maintain status quo at least through 1HCY18 while closely assessing the upcoming inflation prints
Etihad Airways may sell its entire 24% stake in Jet Airways: CAPA
 
Abu Dhabi-based Etihad Airways may sell its entire 24 per cent stake in Jet Airways by the third quarter of FY 2019 as it redraws its growth strategy, aviation consultancy CAPA said in a report.
 
The CAPA report has been prepared for private circulation and is not available on its website. The consultancy tweeted today “CAPA research indicates that Etihad may divest its 24% stake in @jetairways, possibly by Q3 of FY2019. This could lead to a rationalisation of capacity between India and the Gulf, particularly Abu Dhabi.” READ MORE
ONGC seeks shareholders' approval for HPCL deal worth Rs 369.15 bn
 
State-owned Oil and Natural Gas Corp (ONGC) has sought shareholder approval for its decision to buy government's 51.11 per cent stake in Hindustan Petroleum Corp Ltd (HPCL) for Rs 369.15 bn.
 
With government also being a majority shareholder in ONGC, the acquisition fell in the definition of related party transaction for which shareholder nod is needed as per law, the company said in a shareholder notice seeking approval for the deal through a postal ballot. READ MORE
Top Sectoral loser: Nifty PSU Bank index


BSE to delist 36 cos from Mar 5 as shares remain suspended for over 3 yrs

Leading stock exchange BSE will delist 36 companies from next week as trading in their shares has remained suspended for over three years.
These companies will be delisted from March 5, BSE said in two separate circulars READ MORE

Cloud over tax sops for eligible foreign investors trading at GIFT City
 
Despite tax sops doled out to lure investors transacting at the Gujarat International Finance Tec-City (GIFT), entities known as eligible foreign investors, or EFIs, are still unsure if they would escape the tax net.
 
EFIs are not registered as FPIs and there is a concern that income earned by these entities from transactions done on the IFSC exchanges might be classified as business income. This could mean a hefty tax outgo of 40 per cent plus surcharge and cess. READ MORE
What to make of US Fed chairman Jerome Powell's hawkish testimony

Jerome H Powell, the newly minted Chairman of the US Federal Reserve (US Fed) came out as a clear hawk in his first testimony before the Congress on Tuesday.
 
Powell said that his expectations for domestic economic growth have increased since the beginning of the year, citing the passage of the $1.5 trillion tax cut, lifting of the debt ceiling and stronger global growth. READ MORE

Venky's (India) hits new high; stock zooms 1600% in two years

Venky’s (India) continued its upward march for the seventh straight trading day, hitting new high of Rs 4,530, up 15% on the BSE in otherwise subdued market. The stock rallied 69% from Rs 2,673 on February 20, 2018, as compared to 1.3% rise in the S&P BSE Sensex. READ MORE
 

Fortis Healthcare trades flat despite poor December-quarter earnings

Fortis Healthcare was trading flat on Thursday even after the company reported a consolidated net loss of Rs 191 million for the quarter ended December 2017 against a profit of Rs 4.5 billion year-ago periods. READ MORE
MFs' equity portfolio hit hard during February corrections

February was a tough month for India's equity asset managers. With a sudden and sharp decline after the Union Budget, several of the equity schemes lost value and under-performed their respective benchmarks. In a month where key stock indices lost about 5 per cent, almost all of the 20 top most invested stocks by mutual funds lost, on an average, about 6 per cent of their value. READ MORE
Market Check

 
S&P BSE Sensex 34,154.77 -0.09%
 
Nifty 50 10,488.85 -0.04%
 
S&P BSE 200 4,592.18 0.01%
 
Nifty 500 9,261.15 -0.01%
 
S&P BSE Mid-Cap 16,568.93 0.04%
 
S&P BSE Small-Cap 18,175.02 0.26%

Sensex gainers and losers


Mimicking fund managers of no use to investors wanting to double earnings

The Nifty Smallcap 250 index is trading at a PE of 100-plus, which implies investors are looking for a doubling of earnings within a year. While individual businesses, especially small businesses starting from a low base, can double earnings within a year, it is utterly impossible for a batch of 250 companies spread across multiple sectors to do this. READ MORE
Sectoral Trend


Alteria Capital makes first close for $125-mn venture debt fund

Venture debt firm Alteria Capital, founded by two former executives of InnoVen Capital, announced the first close of its maiden venture debt fund. It has received commitments of $55 million (Rs 3.56 billion) for the Rs 8-billion venture debt fund, with a greenshoe option of Rs 2 billion. READ MORE
WhatsApp refuses to share user-specific data with Sebi

Instant messaging platform WhatsApp has declined to share user-specific data with the Securities and Exchange Board of India (Sebi), citing its privacy policy.
 
The market regulator had written to WhatsApp, seeking information on the origin of messages that allegedly contained unpublished price-sensitive information of listed companies, sources said. The information is crucial for Sebi’s investigation into the leakage of financial data at blue-chip companies. READ MORE

ICICI Bank trades lower for third straight day; hits over two-month low

ICICI Bank was trading lower for the third straight day, down 2.7% to Rs 305, an over two-month low on the BSE in intra-day trade on Thursday.
 
The stock of private sector lender hit its lowest level since December 12, 2017. In past three trading sessions, ICICI Bank was down 6.7% against 0.89% decline in the S&P BSE Sensex. READ MORE

Godrej Agrovet hits highest level since listing

Godrej Agrovet rallied 10% to Rs 667 on the BSE in early morning trade in otherwise subdued market on back of heavy volumes.

The stock of Godrej Group Company was up 45% against issue price of Rs 460 per share hit its highest level since listing on October 16, 2017. It made a strong debut by gaining 30% to close at Rs 596 on debut day. READ MORE


Market Check

S&P BSE Sensex 34,120.28 -0.19%
 
Nifty 50 10,490.65 -0.02%
 
S&P BSE 200 4,587.65 -0.08%
 
Nifty 500 9,260.75 -0.01%
 
S&P BSE Mid-Cap 16,546.04 -0.10%
 
S&P BSE Small-Cap 18,186.21 0.32%

Bold decisions, complexities highlight of Sebi chief's first year in office
 
Ajay Tyagi hit the ground running in his new assignment as chairman of the Securities and Exchange Board of India (Sebi). In less than a month in office, Sebi had passed the long-pending order against Reliance Industries in a 10-year-old case of unlawful gains. 
 
The market regulator imposed a penalty of over Rs 10 billion, including interest, on the country’s biggest company, sending a signal that the former bureaucrat would not shy away from taking bold decisions. Besides Reliance, Tyagi also had to deal with cases involving high-profile entities, including Tata Sons and Infosys, at the start of his tenure. READ MORE
Mutual fund firms Mirae, Axis plan realty foray

Mutual fund companies such as Mirae Asset Global Investments and Axis Asset Management are getting into real estate funds. Mirae is looking to float a real estate fund through the alternative investment fund (AIF) route and invest in residential properties in metros and rental assets. READ MORE
Glenmark: Risk-reward turning favourable even as stocks hit 52-week low

Drug major Glenmark, which lost nearly 40 per cent of its market value in the past year, saw its share price hit a 52-week low last week on concerns over growth in its US business. READ MORE
MARKET COMMENT: Amar Ambani, partner and head of research, IIFL

The curious case of equity markets remains difficult to fathom. What is moving on expected lines is the pace of economic growth in India as captured by the latest GDP estimates. Indian economy extended the recovery during the third quarter, with GDP growing at 7.2% (yoy), compared with 6.5% a quarter prior. Estimates project FY18 GDP will expand by 6.6%. India’s core infrastructure sectors during January grew at a faster clip at 6.7% (yoy). India's fiscal deficit meanwhile, stood at Rs 6.77 lakh crore at the end of January, much above the target for the entire fiscal. Markets are awaiting Fed Chairman Jerome Powell’s second appearance this week. With Indian market closed tomorrow on account of the festival of colours, expect a very cautious approach
Dolat Capital on BPCL

Bharat Petroleum Corporation (BPCL)’s results were in-line with our estimates on revenues and below our estimates on profitability front. Revenues increased 13% YoY due to higher crude throughput. EBITDA was lower than our estimates owing to lower GRM and lower marketing profits as compared to inventory gain in Q2FY18. Net Profit was below our estimates primarily driven by other income (down 9.1% QoQ).

With crude prices having an upward trajectory, scope of marketing margins is limited. However, it can benefit from expansion in refining capacity. Recommend Accumulate with a target price of Rs 525.

Near-term sales pressure for Bayer CropScience but growth may rise in FY19

The Bayer CropScience stock was down 17 per cent over the last month on weak December-quarter (Q3) results, sales growth lagging peers and expensive stock valuations. The crop protection and seeds company recorded a 28 per cent fall in sales over the year-ago period in Q3, making it the third quarter in the last four quarters to witness a decline in revenues. READ MORE
Dolat Capital on Ramco Cements

The revenue CAGR of 14.2% over FY18E-20E, to drive operating and Net earnings CAGR by 15.9% and 20% during the same period. At the current levels, the stock is trading at 14.8x/12.3x, FY19E/20E EV/EBITDA. Currently, we have an ACCUMULATE rating with target price of Rs 817/share
Nomura on GDP numbers

GDP growth rose above expectations to 7.2% y-o-y in Q4 from an upwardly revised 6.5% in Q3 – driven by stellar growth in investment, although growth in private consumption demand moderated. GVA growth rose to 6.7% from 6.2% in Q3, because of a pickup in agriculture (4.1% from 2.7%) and non-agriculture GVA growth (7.3% from 6.7%). Overall, the data are a positive surprise and confirm a cyclical recovery. However, we find aspects of the sectoral data puzzling, especially the sharp pick-up in agriculture.

Photo: Shutterstock

Stocks in news

Tata Power – The validity of PPA between BEST and TPC-G has been extended for one year from 1st April 2018 for revised quantum of 676MW.

Reliance Power approves QIP of 2000cr and amount will be used to reduce debt of the Company

Moil update: MOIL has increased prices of Ferro grade Manganese Ore and chemical grade by about 10% on the prices prevailing on 01.01.2018. The prices of Fines has been increased by about 5% on the prices prevailing since 01.01.2018. source: BSE announcement.

Indiabulls Real Estate Ltd. to acquire Farallon’s stake in Singapore trust

Canara Bank alleges Rs 500cr fraud by Kolkata based computer firm

Fortis Healthcare Auditor raises three red flags. Lenders invoked more shares; founders’ stake reduced to 0.7% from 3%.

HCL Infosystems arm to sell HCL MEA FZE share to Axis Investment for 4.12 million UAE dirhams.

Idea Cellular will launch VoLTE services in select markets starting March 1.

NR Agarwal Industries mulls setting up a new 500 TD Kraft paper unit.

Dynamatic Technologies board approved plan for demerger of auto division.

PG Electroplast has commissioned the UF Toilet Seat manufacturing facility. This UF toilet seat facility is one of its kind in India and the technology and knowhow for the facility has been imported by the company.

V-Mart Retail opened two fashion stores one in the state of Uttar Pradesh and one in the state of Bihar. With this the tally of stores in Uttar Pradesh in 54 fashion stores and 17 composite stores and in Bihar is 31 fashion stores and 5 composite stores.

Cadila Healthcare has received the final approval from USFDA to market Dexmedetomidine Hydrochloride Injection 200 mcg (base)/2 mL (100 mcg (base)/ mL single-dose vials.

Granules India said that USFDA has issued an Establishment Inspection Report (EIR) for Granules Pharmaceuticals Inc's facility, a wholly foreign subsidiary of the company located in Chantilly, Virginia.

Dilip Bildcon was declared L1 in 3 Hybrid Projects Valued at Rs.5390cr by NHAI Positive


(Source: Nirmal Bang report)
Edelweiss on Cochin Shipyard

We initiate coverage on Cochin Shipyard (CSL) with ‘BUY’ anchored by: a) its proven track record & capability to undertake complex/large ship building mandates; b) strategic business initiatives to drive 29% revenue CAGR in high-margin ship repairs business providing margin stability in a highly cyclical industry; and c) combination of nomination & competitive orders (6x revenue visibility) from Navy helping sustain superior growth / profitability (18/17% growth in sales/EBITDA over FY17-20E). Our INR660 target price (24% upside) is based on EV/EBITDA of 12x (FY20E), in line with global peers. Customer & project concentration risk and government policies are some of the key risks.
MARKET COMMENT: Technical View
 
In line with expectations, Nifty slipped from mentioned resistance of 10630 to almost 10450 levels. We mentioned, “As long as it sustains below 10630 levels it is likely to remain under pressure & slip back till 10520 & can be followed by 10450 levels”, this happened. Support is seen at 10450-10430 zone & as long as this holds, it can bounce back till 10570 / 10630 zone where strong resistance is seen. Pullback towards 10600-10620 can be a selling opportunity. Cluster of Fibonacci retracements along with 50 days SMA makes 10600-10630 zone a strong resistance. Weak if closes below 10430 levels
 
Source: Pragnesh Jain, AVP Technical Research - Institutional Equities, Systematix Group
Ashoka Buildcon gains as JV emerges highest bidder for TOT project

Shares of Ashok Buildcon surged 7% to Rs 235 on the BSE in early morning trade after the joint venture (JV) between the company and Macquarie has emerged as the highest bidder for the first batch of toll-operate-transfer (TOT) projects from National Highways Authority of India (NHAI). The venture bid Rs 96.8 billion for the NHAI project. READ MORE
Market Check

 
S&P BSE Sensex 34,170.01 -0.04%
 
Nifty 50 10,492.05 -0.01%
 
S&P BSE 200 4,590.84 -0.02%
 
Nifty 500 9,261.90 0.00%
 
S&P BSE Mid-Cap 16,552.56 -0.06%
 
S&P BSE Small-Cap 18,184.85 0.31%

Canara Bank alleges Rs 5 bn fraud by Kolkata-based R P Infosystems

Canara Bank, after authorisation by a consortium of lenders, has made a complaint to the Central Bureau of Investigation (CBI) against a Kolkata-based computer assembler-integrator, R P Infosystems, alleging a Rs 5.15 billion fraud. READ MORE
Nifty Metal index up nearly 1%


BSE Smallcap: Venkey's, Ashoka Buildcon among top gainers, Gitanjali top loser


BSE Midcap: Dalmia Bharat, Endurance Technologies among top gainers, Vakrangee top loser


Sectoral Trend


Top Sensex gainers and losers


Markets at open

At 9:17 am, the S&P BSE Sensex was trading at 34,236, up 52 points while the broader Nifty50 index was ruling at 10,515, up 22 points
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 34,199.86 +15.82 +0.05
 
S&P BSE SENSEX 50 10,969.05 +9.53 +0.09
 
S&P BSE SENSEX Next 50 33,926.45 +35.35 +0.10
 
S&P BSE 100 10,874.69 +9.74 +0.09
 
S&P BSE Bharat 22 Index 3,601.83 +5.28 +0.15

(Source: BSE)
Q3 numbers suggest GDP growth is on the right path, finally

India regained its status as the world's fastest growing major economy in the October-December quarter, surpassing China for the first time. Asia's third-largest economy grew 7.2% in the December quarter, its fastest in five quarters. In this Business Standard Special, Madan Sabnavis analyses if the worst is behind Indian economy. READ MORE
HG Infra Engineering IPO subscribed 5 times

The Rs 4.6-billion initial public offering (IPO) of HG Infra Engineering saw nearly 5 times demand the shares on offer. The qualified institutional buyer (QIB) segment of the issue was subscribed 8.4 times, high networth individual (HNI) portion was subscribed nearly five times, while retail investor quota saw nearly 3 times subscription. 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. READ MORE
Jan core sector growth sharply rises to 6.7%; cement, refinery output zoom

Eight infrastructure sectors grew a faster pace of 6.7 per cent in January against 3.4 per cent in the year-ago month as petroleum refinery and cement output zoomed while steel power and coal production improved. READ MORE
Top stocks to trade

BUY MOTHERSON SUMI
CMP: Rs 330
TARGET: Rs 360
STOP LOSS: Rs 312


The stock has made a lower bottom formation pattern in the daily chart and has indicated a revival with potential and strength to rise further upto 360 levels.
 
The RSI has been on the rise and so also the MACD is showing a positive move upward to indicate a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 360 keeping a stop loss of 312. CLICK HERE FOR MORE
Nifty outlook by Prabhudas Lilladher for the day

Nifty has once again made a top at 10,630 as mentioned earlier and as of now, we anticipate it to move in a range-bound zone of 10,650 and 10,270. Banking stocks seem to be under pressure for the domestic issues and may witness some more downside in the coming days. The support for the day is seen at 10,430 while resistance is seen at 10,550.
India regains status of fastest-growing economy, GDP grows 7.2% in Oct-Dec

Economic growth recovered to a five-quarter high of 7.2 per cent during October-December, backed by strong manufacturing and investment activity as the disruption caused by the goods and services tax (GST) bottomed out. The robust third-quarter performance led to a marginal upward revision in the second advance estimate for 2017-18 to 6.6 per cent from 6.5 per cent in the first estimate, though it was still lower than the 6.75 per cent projected by the Economic Survey. READ MORE
Markets on Wednesday

 
S&P BSE Sensex 34,184.04 -0.47%
 
Nifty 50 10,492.85 -0.58%
 
S&P BSE 200 4,591.54 -0.43%
 
Nifty 500 9,261.90 -0.43%
 
S&P BSE Mid-Cap 16,562.59 -0.23%
 
S&P BSE Small-Cap 18,127.93 0.21%

CREDIT SUISSE ON BRITANNIA
 
We value Britannia at 45x Mar-2020 earnings, in-line with our target multiple for HUL and Nestlé and at a 10-15% premium to other larger Indian domestic FMCG companies like GCPL, Dabur and Marico. We initiate with Outperform and a target price of Rs5,500. Key risks include: (1) Rise in competitive intensity from Parle or ITC and (2) a sharp spike in input costs such as sugar, milk, palm oil and flour.
COMMENT: Radhika Rao, India Economist, DBS Bank on GDP numbers
 
Improvement was broad-based, with a pick up in most production/investment demand indicators. Under GVA, agri and non-agri activities have both picked pace. Besides base effects, Better construction and agri sectoral performance bodes well for employment creation prospects. Looking ahead, the likelihood of higher rural incomes (on higher MSPs) and pre-election spending is likely to be supportive of FY19 numbers.
 
Encouraging growth numbers will help take some pressure of other weaker macro-indicators, particularly a wider CAD, fiscal and inflation outlook. 
 
For the debt markets, however, relief might be short-lived as a strong growth picture lowers the bar for the RBI to shift from a neutral to a hawkish gear, should inflation prove sticky beyond June. 
EMKAY GLOBAL ON GDP
 
Q3FY18 GDP growth gained momentum as it stood at 7.2% yoy while GVA also recovered to a growth of 6.7% (our expectation was 6.7% for both GVA and GDP). The GDP figure indicates that there has been significant improvement in investment and Construction activity in Q3FY18, which can partly be attributable to demonetisation in base quarter. However, it is still perplexing as the projects completed (as per CMIE) declined by 2.7% yoy, with no marked improvement in private investment activity and state governments capital spending has declined by ~10% yoy. 
 
Fiscal deficit till Jan’18 has exceeded 3.5% of GDP, but if government slows down its spending drive, growth is likely to plummet. Hence, we believe the government is likely to cut down on its capital spending in Q4. Also, we believe that nominal GDP is understated and is likely to be higher at 10.5% yoy in FY18 (9.8% according to CSO) on rising commodity prices. ‚Äč
Wall Street

The Dow Jones Industrial Average fell 177.61 points, or 0.7%, to 25,232.42, the S&P 500 lost 9.95 points, or 0.36%, to 2,734.33 and the Nasdaq Composite dropped 7.84 points, or 0.11%, to 7,322.51.
Asian markets slip
 
Asian stocks skidded on Thursday after comments from the Federal Reserve's new chief rekindled fears about the pace of US monetary tightening this year, sending Wall Street tumbling for its worst performance in two years and lifting the dollar CLICK HERE FOR MORE
Today's picks: From L&T to Zee, hot stocks to watch on Thursday
 
Nifty Current: 10,492 (fut: 10,520), Target: NA Stop-long positions at 10,450. Stop-short positions at 10,575. Big moves could go till 10,400, 10,625. A long 10,400p (96), short 10,300p (70) could gain 10-15 if the support at 10,450 is tested. But there could be a rebound ahead of the long weekend READ MORE
SGX Nifty

The SGX Nifty was at 10,464, down 0.53% from the previous close.
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