MARKET WRAP: Sensex climbs 147 pts as rupee firms; auto, metal stocks rally

The benchmark indices ended higher on Friday aided by strong gains in automobiles and metal stocks after the rupee firmed against US dollar.

The S&P BSE Sensex ended at 38,390, up 147 points while the broader Nifty50 index settled at 11,589, up 52 points.

Among the sectoral indices, the Nifty Auto index settled 2.2 per cent higher led by a rise in the share prices of Hero MotoCorp, Bajaj Auto, Mahindra and Mahindra, and Tata Motors. Nifty Metal index, too, rose 1.9 per cent led by MOIL and Jindal Steel & Power.

Firm rupee

The rupee was trading higher by 24 paise to 71.75 against the US currency in late morning deals on Friday due to sustained bouts of dollar selling from banks and exporters.

Earlier, the rupee resumed slightly higher at 71.95 against yesterday's closing level of 71.99 a dollar at the interbank foreign exchange market here. READ MORE

Global Markets

Asian shares carved out a 14-month trough on Friday as investors feared a new salvo of Sino-US tariffs could come at any moment, while a slump in US chip stocks rippled through the tech-heavy region.

MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.3 per cent, having earlier reached its lowest since mid-July last year. The Nikkei shed 0.8 per cent, undermined by a rising yen and reports US President Donald Trump could be contemplating taking on Japan over trade. Chinese blue chips managed a 0.5 per cent bounce as beaten-down healthcare stocks found buyers after taking a savaging in recent months amid vaccine scandals.

(with wire inputs)


Nifty Auto index ends 2.20% higher. Top gainers:

HERO MOTOCORP 3329.35 3164.85 164.50 5.20
BAJAJ AUTO 2923.55 2783.10 140.45 5.05
MOTHERSON SUMI 303.15 290.70 12.45 4.28
M & M 973.70 934.95 38.75 4.14
TVS MOTOR CO. 589.85 569.70 20.15 3.54

Nifty sectoral gainers and losers of the day

BSE Sensex: Hero MotoCorp, Bajaj Auto, M&M among top gainers of the day

Markets at close

The S&P BSE Sensex ended at 38,390, up 147 points while the broader Nifty50 index settled at 11,589, up 52 points.
Iron ore output to rise 5% in FY19 on stable demand from infra, auto

Domestic iron ore production is projected to grow by five per cent in 2018-19, helped by a stable demand from the infrastructure and automobile industries. Apart from the anticipated growth in production, demand for iron ore inside the country will be met by the accumulated ore stocks at mine heads, chiefly in the states of Odisha and Jharkhand which between them account for 80 per cent of the piled up inventory. READ MORE

State Bank of India says Anshula Kant appointed MD

Top lender State Bank of India said on Friday that the government had appointed Anshula Kant as the bank's managing director. READ MORE
YES Bank hits over 4-month low; stock falls 5%

Shares of YES Bank hit an over four-month low of Rs 322 per share, down 5% on the BSE on the back of heavy volumes. The stock was the largest loser among the S&P BSE Sensex and Nifty 50 index READ MORE

Two-fold jump in gold imports in August as traders replenish inventory

With the fall in gold prices internationally, jewellers and traders imported 100 tons gold in August to augment their inventories before falling rupee takes away the lower price advantage. However, the sudden jump in import has again raised current account deficit worries. READ MORE

Motherson Sumi Systems gains 5% as board approves 1:2 bonus shares

Shares of Motherson Sumi Systems have surged 5% to Rs 306 per share on the BSE in the afternoon after the company said its board approved bonus shares in the ratio of 1:2 on completing 25 years of the listing of its equity shares on stock exchanges. READ MORE

Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 38,317.02 +74.21 +0.19
S&P BSE SENSEX 50 12,107.44 +36.78 +0.30
S&P BSE SENSEX Next 50 34,886.78 +409.48 +1.19
S&P BSE 100 11,874.70 +51.82 +0.44
S&P BSE Bharat 22 Index 3,660.88 +7.82 +0.21

Data sharing woes impeding Sebi's several ongoing investigations

Markets regulator Securities and Exchange Board of India (Sebi) is facing impediments with several ongoing investigations, on account of challenges around data sharing arrangements with other regulatory agencies. People in the know said several data requests made by Sebi in the past to other regulators, including the tax department and economic intelligence bureau, have not returned adequate responses. READ MORE

OTT concerns to remain an overhang for Zee Entertainment; stock falls

The Zee Entertainment stock fell nearly 10 per cent intra-day on worries that its over-the-top (OTT) application Zee5 will weigh on margins.
Analysts at Morgan Stanley, in a report, indicated that intense competition in the OTT space — especially from deep pocketed international players Amazon and Netflix, as well as domestic players such as Reliance Jio — would require Zee to spend on high quality content, thus impacting margins. READ MORE

Top gainers in BSE 500:

SUVEN LIFE SCIE. 314.10 33.65 12.00
TEJAS NETWORKS 310.50 33.20 11.97
JUBILANT LIFE 816.50 56.25 7.40
HIMADRI SPECIALT 130.50 8.80 7.23
AUROBINDO PHARMA 809.50 49.95 6.58
» More on Top Gainers
Texmo Pipes zooms 67% in 4 days on order win worth Rs 813 million from L&T

Shares of Texmo Pipes & Products have surged 20% to Rs 39 per share, extending their past three days rally on the National Stock Exchange (NSE) after the company received order worth of Rs 813 million from Larsen & Toubro (L&T). The stock of plastic products company trading at its 52-week high has zoomed 67% in past four trading days from Rs 23.35 on Monday. READ MORE

Brokerages gear up for longer trading hours and raise staff count

Brokerages have started gearing up for longer trading hours that come into effect from October 1. Most big brokers are adding manpower to service clients who want to avail longer trading hours. While smaller firms said they may not be able to add too much manpower, they will instead improve their digital offerings. READ MORE

Zensar Technologies hits new high; turns ex-date for stock split

Zensar Technologies rallied 5% to Rs 352 on the BSE in intra-day trade today after the stock turned ex-date for stock split in the ratio of 5 for 1. The company fixed September 10, 2018 as record date for the stock split.
The board of directors of information technology firm at their meeting held on April 24, 2018 approved the sub-division of equity shares of the Company from one equity share of face value of Rs 10 each into five equity shares of Rs 2 each. READ MORE

Aurobindo Pharma, Glenmark Pharma hit 52-week highs

Shares of Aurobindo Pharma and Glenmark Pharmaceuticals from the pharma sector hit their respective 52-week highs, while KPIT Technologies, Mindtree and Zensar Technologies from the information technology (IT) sector touched new highs on the BSE in intra-day trade on Friday. READ MORE

Markets at noon

Index Current Pt. Change % Change
S&P BSE SENSEX 38,265.58 +22.77 +0.06
S&P BSE SENSEX 50 12,087.32 +16.66 +0.14
S&P BSE SENSEX Next 50 34,699.90 +222.60 +0.65
S&P BSE 100 11,848.31 +25.43 +0.22
S&P BSE Bharat 22 Index 3,650.00 -3.06 -0.08

Thanks to Jio, RIL is catching up with Sensex after a decade-long slumber
Reliance Industries’ (RIL) recent gains are helping the companies catch up with the benchmark index, which it has trailed for much of the past decade.
As of Wednesday’s close, the firm’s shares had surged 135 per cent since it launched telecom services in 2016, nearly four times the advance in the S&P BSE Sensex, making it the best performer. READ MORE

Nifty Auto index gains, up 1%

IL&FS emergency board meet today to take a call on fundraising, assets sale
The board of Infrastructure Leasing & Financial Services (IL&FS) has called an emergency meeting in Mumbai on Friday to take a call on fundraising, sale of assets, including road projects, and default by its subsidiary IL&FS Financial Services (IFIN) on commercial paper. The board might even look at reducing the premium on shares because some shareholders were not happy with high premium, said a source close to the development. READ MORE
GCPL stock: Domestic volume, revenue growth prospects remain strong
Prior to the recent correction among scrips of fast-moving consumer goods (FMCG) due to valuation concerns, the stock of Godrej Consumer Products (GCPL) had gained 56 per cent. This was on account of a strong June quarter performance and steps it was taking to boost volume revenue growth. In fact, GCPL has been registering better sales growth than many of its peers over the past two years.
The strong performance was also visible in the June quarter, the first (Q1) of this financial year. Net sales rose 12.7 per cent over last year to Rs 24.5 billion, led by 14 per cent domestic volume growth. Net profit increased 80 per cent to Rs 4.1 billion. READ MORE
Sun Pharma falls 5% on reports of USFDA issues observations
Shares of Sun Pharmaceutical Industries dipped 5% to Rs 641 on the BSE in early morning trade on Friday on profit booking after the media report suggested that the U.S. drug regulator issued six observations on the company’s plant located at Halol for inspections carried out during August 27-31.
Observations in the latest Form 483 point to issues relating to test procedures. Two analysts with an international brokerage, who also had access to the Form 483, indicated that the observations are not critical, and Sun Pharma will be able to resolve these issues soon, the BloombergQuint reported. READ MORE
Aurobindo's US operations get growth boost
Aurobindo Pharma, one of the largest vertically-integrated pharmaceutical companies in the country, continues with it acquisition-led growth strategy, announcing yet another buy in the US. It is acquiring commercial operations and three manufacturing facilities from Sandoz Inc, which will help it become the second largest generic player in the US by number of prescriptions.
The acquired portfolio will include oral solids (70 per cent) and dermatology products (30 per cent). READ MORE
Bajaj Auto gains 3% on plans to expand 3 wheeler & quadricycle capacity
Shares of Bajaj Auto were up by 3% at Rs 2,875 per share on the BSE in an otherwise weak market after the company announced its plan to expand 3 wheelers & quadricycle capacity to 1 million per year as Government announced an end to permits.
At the Society of Indian Automobile Manufacturers (SIAM) convention on Thursday, the Minister for Transport, Nitin Gadkari made a historic announcement moving to a "no-permit" regime for auto rickshaws powered by alternative fuels. READ MORE
Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 38,173.61 -69.20 -0.18
S&P BSE SENSEX 50 12,058.15 -12.51 -0.10
S&P BSE SENSEX Next 50 34,650.41 +173.11 +0.50
S&P BSE 100 11,821.22 -1.66 -0.01
S&P BSE Bharat 22 Index 3,647.01 -6.05 -0.17

How rupee has been held hostage to a 70% surge in India's crude oil bill
Forget Turkey and Argentina. The Indian rupee’s real bugbear is the price of oil.
India’s currency had its worst month in three years in August as crude rallied on speculation sanctions on Iran will shrink global supplies. The crude import bill for the world’s fastest-growing oil user surged 76 percent in July from a year earlier to $10.2 billion. That pushed up the trade deficit to $18 billion, the most in five years. READ MORE

10 years of global financial crisis: Growth, fiscal consolidation yet to return to pre-financial meltdown levels
How did the global financial crisis of September 2008 affect the Indian economy? Looking back at how the events unfolded 10 years ago, it becomes quite clear that no other single economic event in several past decades has had as huge an impact on India’s macroeconomic fundamentals as the global financial meltdown. Consider the following numbers.
The Centre’s fiscal deficit had been brought down to a very respectable level of 2.54 per cent of gross domestic product (GDP) by 2006-07.  READ MORE

Nifty sectoral trend

BSE Sensex opening gainers and losers

Market at open
At 9:15 AM, the S&P BSE Sensex was trading at 38,124, down 119 points while the broader Nifty50 was ruling at 11,505, down 32 points.
RUPEE ALERT Rupee falls past 72/$ at opening
Market at pre-open

Index Current Pt. Change % Change
S&P BSE SENSEX 38,408.47 +165.66 +0.43
S&P BSE SENSEX 50 12,112.26 +41.60 +0.34
S&P BSE SENSEX Next 50 34,549.55 +72.25 +0.21
S&P BSE 100 11,861.23 +38.35 +0.32
S&P BSE Bharat 22 Index 3,667.13 +14.07 +0.39

Commodity outlook by Tradebulls Securities
Buy Zinc
Target: Rs 180
Stop loss: Rs 172
Zinc lately has started outperforming Lead and we expect the momentum to continue for a couple of more trading session. It has closed above its short-term moving average of 13 and 20. RSI_14 has started curving upwards and is near 50. Zinc had made harami candlestick pattern after fall which indicates that sellers have exhausted and buying is slowly emerging. We recommend long position with a target of 180 and stop loss of 172.

Click here for more
Top trading ideas by Prabhudas Lilladher:
CMP: Rs 77.15
STOP LOSS: Rs 72.80
The stock has made a double bottom formation pattern in the daily chart taking support at 73 levels and has given a positive bullish candle signifying strength and has potential to rise still further in the coming days. The chart looks attractive and with the RSI indicating a steep rise with a trend reversal has signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 86 keeping a stop loss of 72.80.
Nifty outlook by Prabhudas Lilladher
Nifty has given a pullback from the low of 11394 to form a higher bottom formation pattern in the daily chart and chances of some upside movement in the coming days cannot be ruled out. A similar view is maintained for Bank Nifty also. With the weak global cues accompanied with the rupee and crude concerns, we anticipate volatility in the market. However, the support for the day is seen at 38,000/11,470 while resistance is seen at 38,480/11,600. Bank Nifty would have a range of 27,200-27,730.
Today's picks
Current price: Rs 235
Target price: Rs 239
Keep a stop at Rs 233 and go long. Add to the position between Rs 237 and Rs 238. Book profits at Rs 239.
Current price: Rs 662
Target price: Rs 672
Keep a stop at Rs656 and go long. Add to the position between Rs 669 and Rs 671. Book profits at Rs 672.

Rupee breaches 72 mark against dollar for the first time; RBI intervenes
The rupee crossed the 72-a-dollar mark on Thursday, but retreated on intervention by the Reserve Bank of India (RBI).
The currency fell to 72.07 a dollar in intra-day trade, but closed just below the 72-mark. Many economists who were critical of the RBI not intervening were coming out in support of the central bank’s hands-off approach, in view of the volatility in other emerging markets (EMs). READ MORE
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 22 points or 0.19 per cent. Nifty futures were trading around 11,566-level on the Singaporean Exchange.
Oil prices climb as US crude inventories drop
Oil prices rose on Friday after US crude inventories fell to their lowest levels since February 2015. US West Texas Intermediate (WTI) crude futures were at $67.90 per barrel at 0056 GMT, up 13 cents, or 0.2 per cent, from their last settlement. International Brent crude futures climbed 12 cents, or 0.2 per cent, to $76.62 a barrel.
Asia shares hit 14-month lows, yen advances on trade jitters
Asian shares slipped to a 14-month trough on Friday as investors feared a new round of Sino-US tariffs could come at any moment, while a slump in US chip stocks rippled through the tech sector.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.34 per cent to reach its lowest since mid-July last year. The Nikkei fell 0.9 per cent, undermined by a rising yen and reports US President Donald Trump could be contemplating taking on Japan over trade.
Trade jitters and tech woes weigh on S&P, Nasdaq
The S&P 500 and Nasdaq declined on Thursday as the possibility of more US tariffs on Chinese imports loomed, while tech stocks stumbled, led by chipmakers and concerns about increased regulation of social media companies.
The Dow Jones Industrial Average rose 20.88 points, or 0.08 per cent, to 25,995.87, the S&P 500 lost 10.55 points, or 0.37 per cent, to 2,878.05 and the Nasdaq Composite dropped 72.45 points, or 0.91 per cent, to 7,922.73.
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