MARKET WRAP: Sensex slips 85 pts; private banks drag, YES Bank falls 3.5%

A share broker monitors market fluctuation
The benchmark indices settled marginally lower on Friday, weighed by financials and consumer stocks amid caution in global markets.

The S&P BSE Sensex ended at 38,252, down 85 points while the broader Nifty50 index settled at 11,557, down 26 points.

Among key stocks, Yes Bank and ICICI Bank were among the top losers on the BSE, falling 3.5 per cent and 2 per cent, respectively. On the National Stock Exchange (NSE), the Nifty Bank index settled 0.7 per cent lower weighed by Yes Bank, Bank of Baroda and ICICI Bank.

Global Markets

Asian stocks fell on Friday after US-China trade talks ended without progress and market focus shifted to a speech by the Federal Reserve chairman for fresh clues on the direction of US monetary policy.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.25 per cent. It was still up about 1 per cent on the week. Hong Kong's Hang Seng fell 0.55 per cent and the Shanghai Composite Index dropped 0.35 per cent. Australian stocks rose 0.15 per cent and South Korea's KOSPI advanced 0.2 per cent. Japan's Nikkei climbed 0.65 per cent, lifted by a weaker yen.

Investors braced for a speech by Federal Reserve chair Jerome Powell for hints on the direction of monetary policy. Powell is set to give a speech later in the day at the Jackson Hole, Wyoming, conference of central bankers.

(With inputs from Reuters)


Nifty Bank index ends 0.69% down. Top losers:

YES BANK 374.05 388.60 -14.55 -3.74
ICICI BANK 329.85 337.20 -7.35 -2.18
BANK OF BARODA 147.00 149.85 -2.85 -1.90
INDUSIND BANK 1937.40 1957.20 -19.80 -1.01
IDFC BANK 46.95 47.30 -0.35 -0.74

Nifty sectoral losers of the day

BSE Sensex: Yes Bank, ICICI Bank among top losers of the day

Market at close

The S&P BSE Sensex ended at 38,252, down 85 points while the broader Nifty50 index settled at 11,557, down 26 points.
Oil up as US sanctions on Iran cloud supply outlook

Oil prices rose on Friday, supported by signs that U.S. sanctions on Iran are already reducing global crude supply.
Benchmark Brent crude oil was up 60 cents a barrel at $75.33. Brent was on track for gains of almost 5 per cent this week. US light crude was 50 cents higher $68.33, heading for a gain on 3.8 per cent this week. READ MORE

NCLAT declines stay on Tata Sons' conversion to pvt co; relief for Mistry

While declining to pass any order on the conversion of Tata Sons into a private company from a public limited firm, NCLAT today asked Tata Sons not to force Cyrus Mistry to sell his shares in the company till his appeal is pending.
The National Company Law Appellate Tribunal (NCLAT) said that pending the litigation here, the Cyrus Mistry camp which was seeking a status quo over it cannot be "forced to sell shares". READ MORE

Gold gains as dollar slips; markets await Fed chairman's speech

Gold rose on Friday after falling in the previous session, as the dollar eased and markets awaited a speech by the Federal Reserve chairman for fresh clues on the direction of US monetary policy.
Spot gold was up 0.3 per cent at $1,188.96 an ounce, after falling 0.9 per cent on Thursday. Prices have risen about 0.3 per cent so far this week. US gold futures were up 0.1 per cent at $1,195 an ounce. READ MORE

Amrutanjan, Pfizer, Merck, Novartis hit new highs

Shares of selected pharmaceutical companies were in focus with Amrutanjan Health Care, Pfizer, Merck and Novartis India rallying up to 18% on the BSE in otherwise subdued market. All these stocks were trading at their respective all-time highs. READ MORE

Analysts keep faith in Larsen & Toubro despite buyback proposal

Analysts remain bullish on Larsen & Toubro (L&T) and have maintained a ‘buy’ rating on the stock despite the company’s buyback proposal. The company, at its meeting on Thursday, approved a proposal to buy back up to 60 million equity shares at a maximum price of Rs 1,500 per equity share for an amount of Rs 90 billion. READ MORE

Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 38,269.98 -66.78 -0.17
S&P BSE SENSEX 50 12,108.47 -23.84 -0.20
S&P BSE SENSEX Next 50 34,823.94 -6.23 -0.02
S&P BSE 100 11,872.20 -20.18 -0.17
S&P BSE Bharat 22 Index 3,668.16 +2.24 +0.06

(Source: BSE)
Britannia board to split stock in 1:2 ratio to make it more affordable

The board of confectionary major Britannia Industries on Thursday approved share split in 1:2 ratio to make the stock more affordable for the small retail investors and increase liquidity.
The Kolkata-based company will split the shares with a face value of Rs 2 into two equity shares of Re 1 each. READ MORE

Bandhan Bank: Balance sheet must strengthen, without relying on MFI biz

Recently, Bandhan Bank made quite a splash for displacing YES Bank to become the seventh-most valued bank and for nearly doubling from its IPO price to Rs 700. It is also India’s most priced bank in terms of price-to-book value. READ MORE

How Maharashtra APMC amendment could push traders away from markets

In a drastic move, the Maharashtra cabinet on Wednesday decided to amend the APMC Act making it illegal for any private trader to purchase any agriculture produce below the government-fixed MSP from the coming kharif harvest season. READ MORE
Tim Cook, top CEOs warn Trump's immigration crackdown will harm US economy

Vague and unpredictable Trump administration immigration policies threaten the US economy amid a tightening labour market, CEOs from major American companies have warned. READ MORE


A systemic event in financial markets is more likely to be triggered by Italy and the Eurozone than other candidates currently discussed by pundits, be it a Donald Trump-triggered trade war, a much anticipated Chinese currency collapse or overvalued Wall Street FANG stocks. Still, they are all interconnected phenomena.

A renewed focus on the existential risks in the Eurozone is likely to put renewed downward pressure on the euro which will then lead to broader US dollar strength against all currencies. This will in turn make it more challenging for China to manage the capital outflow issue.
Rising concerns about trade wars are also likely to remain US dollar bullish. GREED & fear has an unhelpful (for investors) 50/50 view on whether Trump choses to escalate the trade issue or de-escalate it ahead of the November mid-term elections which is why GREED & fear would not advise investors to make a big bet either way on this point.

(Source: Wood's weekly newsletter, GREED & fear)

Christopher Wood, Managing Director & Equity Strategist, CLSA

Rupee's weakness worrying you? Beat depreciation with international funds

The rupee touched an all-time low against the dollar recently and is now trading at the 70.11 mark. It has depreciated 8.90 per cent against the dollar year-to-date. One way how investors can protect themselves against currency depreciation is by investing in international funds offered by mutual fund houses in India. READ MORE

Rupee@70: RBI may have shifted rupee intervention limit, say analysts

The Reserve Bank of India appears to have turned less aggressive in defending the rupee, letting the currency slide closer to its real-effective exchange rate amid an emerging-market selldown.
The central bank, which intervened actively until the rupee hit 69 per dollar, has mostly stayed on the sidelines after the currency broke past the 70 psychological mark last week, according to foreign-exchange traders familiar with the RBI’s market transactions. READ MORE
rupee & dollar

HDFC AMC hits highest level since listing; rises 12% in one week

Shares of HDFC Asset Management Company have rallied 4.6% to Rs 1,916 per share, extending their 7% gain in the past three days on the BSE, after the company reported 25% growth in its net profit at Rs 2.05 billion in June quarter (Q1FY19).
Revenue from operations grew by 21% to Rs 4.71 billion during the quarter against Rs 3.90 billion in the corresponding quarter of previous year. READ MORE

Markets at noon

Index Current Pt. Change % Change
S&P BSE SENSEX 38,291.06 -45.70 -0.12
S&P BSE SENSEX 50 12,117.57 -14.74 -0.12
S&P BSE SENSEX Next 50 34,838.69 +8.52 +0.02
S&P BSE 100 11,880.53 -11.85 -0.10
S&P BSE Bharat 22 Index 3,670.77 +4.85 +0.13

STT on physically-settled derivatives: HC defers hearing in Anmi-NSE matter
The Bombay High Court on Thursday deferred hearing in a matter between the brokers' lobby, Association of National Exchanges Members of India (Anmi), and the National Stock Exchange (NSE) over the applicability of securities transaction tax (STT) on physically-settled derivatives.
Since the counsel for the Central Board of Direct Taxation (CBDT) was not present, the court directed the Additional Solicitor General (ASG) to be present. The ASG assured return on August 28. The courts acknowledged the importance and urgency of clarification before the end of this month. READ MORE
SBI fixes plans for six stressed power assets; RBI deadline ends Monday
State Bank of India (SBI) has chalked out resolution plans for about half a dozen stressed power assets. But their future is still uncertain as other lenders are yet to come on board even as the Reserve Bank of India’s deadline for beginning insolvency proceedings ends on August 27.
SBI is the lead lender, with an exposure of Rs 700 billion to these companies. Lenders are still hoping that the latest amendment to the Insolvency and Bankruptcy Code (IBC) would come to their rescue. READ MORE
NMDC: Analysts see improving volumes ahead as Karnataka issues resolve
The NMDC stock has continued trending down on the bourses with declining international iron ore prices over the last few months. However, there seems to be some respite ahead for the company as well as investors.
The ex-China iron ore prices, which stood at over $78 a tonne in early March, had declined to less than $64 a tonne by April and have remained range-bound thereafter. The declining international prices meant that NMDC also had to adjust prices of its produce. READ MORE
Top Nifty50 gainers

UPL 668.45 649.95 18.50 2.85 1879756
O N G C 174.70 171.90 2.80 1.63 2700825
POWER GRID CORPN 193.15 190.20 2.95 1.55 2118518
GRASIM INDS 1057.20 1045.55 11.65 1.11 798503
COAL INDIA 292.10 289.05 3.05 1.06 932501

SpiceJet hits 17-month low; stock down 31% in one month
Shares of SpiceJet continued to remain under pressure, hitting a 17-month low of Rs 76, down 4% on the BSE in an otherwise firm market.
The stock of the budget carrier was trading at its lowest level since March 9, 2017. It has fallen 31% in past one month, as compared to 4% rise in the S&P BSE Sensex. READ MORE
Offshore asset managers set to approach PMO for clarity on KYC guidelines
A group of offshore asset managers plan to write to the Prime Minister’s Office (PMO), to seek clarity on the impasse pertaining to know-your-client (KYC) guidelines proposed by the Securities and Exchange Board of India (Sebi) in its circular on April 10.
In the past few months, the regulator had received representations from several market participants, asking it to review the proposals and grant additional time. READ MORE
Britannia board to split stock in 1:2 ratio to make it more affordable
The board of confectionary major Britannia Industries on Thursday approved share split in 1:2 ratio to make the stock more affordable for the small retail investors and increase liquidity.
The Kolkata-based company will split the shares with a face value of Rs 2 into two equity shares of Re 1 each. READ MORE
Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 38,370.06 +33.30 +0.09
S&P BSE SENSEX 50 12,141.89 +9.58 +0.08
S&P BSE SENSEX Next 50 34,958.18 +128.01 +0.37
S&P BSE 100 11,906.95 +14.57 +0.12
S&P BSE Bharat 22 Index 3,679.74 +13.82 +0.38

STOCK ALERT Hexaware Technologies falls 19% after huge block deals

Shares of Hexaware Technologies dipped 19% to Rs 401 on the National Stock Exchange (NSE) in early morning trade after a more than 10% of equity of information technology firm changed hands on the counter via block deals. The stock has slipped 17% at Rs 415 on the BSE in intra-day trade so far. READ MORE

Limited competition in mutual funds irks Sebi; Ajay Tyagi calls for reforms
Markets regulator Securities and Exchange Board of India (Sebi) has expressed concerns over few mutual fund houses dominating the Rs 23-trillion, domestic asset management industry.
According to data, the top 10 fund houses account for 81 per cent of the total assets under management (AUMs). The top-five players account for almost 57 per cent of the assets. READ MORE
Nifty sectoral trend

BSE Sensex gainers and losers

Market at open
At 9:15 AM, the S&P BSE Sensex was trading at 38,281, down 56 points while the broader Nifty50 was ruling at 11,562, down 21 points.
Markets at pre-open

Index Current Pt. Change % Change
S&P BSE SENSEX 38,484.87 +148.11 +0.39
S&P BSE SENSEX 50 12,177.78 +45.47 +0.37
S&P BSE SENSEX Next 50 34,864.19 +34.02 +0.10
S&P BSE 100 11,931.97 +39.59 +0.33
S&P BSE Bharat 22 Index 3,673.73 +7.81 +0.21

Commodity outlook by Tradebulls Securities
Buy Lead
Target: Rs 145
Stop loss: Rs 137
Lead had bounced from oversold territory and made bullish engulfing candlestick pattern on a daily scale. The primary trend still is negative as it is trading below all short term moving an average of 13, 20 and 50. However, Lead looks poised for a bounce as it is making higher low since past 3 trading session. We would recommend long position with expected upmove till 145 and stop loss of last week’s low 137 on a closing basis.
RIL first Indian firm to hit Rs 8 trillion market cap, TCS not far behind
Reliance Industries (RIL) on Thursday became the first Indian company to cross Rs 8 trillion in market capitalisation. The stock gained 1.9 per cent to close at Rs 1,270, valuing the Mukesh Ambani-led firm at Rs 8.05 trillion ($115 billion at current exchange rate of Rs 70.11 for a dollar).
Shares of RIL have rallied 34 per cent from their recent low of Rs 945 on June 28 amid big-bang announcements during its annual general meeting (AGM) in early July. During the same period, the benchmark BSE Sensex gained 9.5 per cent. READ MORE HERE

Top trading ideas by Anand Rathi Research:
TARGET: Rs 948
The stock has started to form higher tops and bottoms and it seems to have completed the right shoulder of an inverse head and shoulders pattern. The momentum indicator too is well in the buy mode, hence we recommend buying this stock.

Click here for more
Nifty outlook by Anand Rathi Research
The Index closed in the positive territory in the last trading session and it has again formed a lifetime high. The Index after having broken 11,495 on the upside has confirmed the extension on the upside; hence the minimum equality target on the upside comes to 11,653 whereas on the lower side 11,525 becomes a crucial support.
Today's picks
Current price: Rs 903 
Target price: Rs 915 
Keep a stop at Rs 897 and go long. Add to the position between Rs 910 and Rs 913. 
Book profits at Rs 915.
Current price: Rs 260
Target price: Rs 255
Keep a stop at Rs 263 and go short. Add to the position between Rs 256 and Rs 257. 
Book profits at Rs 255. 

Click here for more
Top trading ideas by Prabhudas Lilladher
CMP: Rs 9,223.30
TARGET: Rs 9,900
STOP LOSS: Rs 9,000
The stock has been consolidating for quite some time at around 9100 levels forming a strong base at around 9020-9040 levels and currently has indicated a positive bullish candle pattern in the daily chart moving above the significant 50 DMA moving average to signify strength and has maintained a positive bias to signal a buy. The RSI also has indicated a trend reversal to improve the sentiment and with consistent decent volume participation witnessed, we recommend a buy in this stock for an upside target of 9900 keeping a stop loss of 9000.
Nifty outlook by Prabhudas Lilladher:
Nifty made a record high but the sentiment was somewhat shaken with BankNifty witnessing heavy profit booking and failing to breach the previous peak of 28,363 levels. Nifty has indicated a “Hanging Man” pattern in the daily chart and the chances of a correction in the indices cannot be ruled out. However, the support for the day is seen at 38,100/11,520 while resistance is seen at 38,520/11,630. Bank Nifty would have a range of 27,770-28,220.
Rupee sinks 30 paise on US rate hike worries, crude spike
The rupee yesterday sank 30 paise to close below the 70-mark against the US currency due to renewed worries about a hike in US interest rates amid global trade war jitters. The domestic currency ended at 70.11 per dollar, a loss of 30 paise or 0.43 percent over the previous close. In day trade, the rupee had crumbled to a session low of 70.17 per dollar.
Oil markets muted as US-China trade war remains unresolved
Oil markets were steady on Friday as the unresolved trade dispute between Washington and Beijing muted activity. Brent crude oil futures were at $74.50 per barrel at 0105 GMT, up 7 cents from their last close. US West Texas Intermediate (WTI) crude futures were at $67.93 per barrel, up 10 cents.
China, US slap $16 bn tariff on each others good as trade war escalates
China yesterday slapped 25 per cent tariffs on American imports worth about USD 16 billion in retaliation to a similar move by the US as the two economic giants escalated their trade war. US has imposed a steep import tariffs starting today on $16 billion of Chinese goods over what Washington has called rampant theft of American technology.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a gain of 40.5 points or 0.35 per cent. Nifty futures were trading around 11,564- level on the Singaporean Exchange.
Asia markets edge down
Asian stocks tracked Wall Street losses and edged down in early trade on Friday, but the dollar was buoyant after ending a long losing run ahead of a speech by Federal Reserve Chairman Jerome Powell. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.18 per cent. Australian stocks rose 0.16 per cent, South Korea's KOSPI fell 0.35 per cent and Japan's Nikkei climbed 0.35 per cent.
Wall Street weighed by new round of US-China tariffs
Wall Street’s major indexes fell on Thursday as trade-sensitive stocks were hit by a fresh round of tariffs in the trade dispute between the United States and China.
The Dow Jones Industrial Average fell 76.62 points, or 0.3 per cent, to 25,656.98, the S&P 500 lost 4.84 points, or 0.17 per cent, to 2,856.98 and the Nasdaq Composite dropped 10.64 points, or 0.13 per cent, to 7,878.46.
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