MARKET WRAP: Indices end at record high; RIL market-cap hits Rs 8 trillion

Photo: Shutterstock
The benchmark indices ended broadly flat on Thursday amid weak Asian markets.

The S&P BSE Sensex settled at a fresh record closing high of 38,337, up 51 points, while the broader Nifty 50 index closed at a new high of 11,583, up 12 points. In intra-day deals, the S&P BSE Sensex hit a new all-time high of 38,487.63. The Nifty50 index, on the other hand, touched its record high level of 11,620.70.

RIL's MARKET-CAP HITS RECORD

Mukesh Ambani-controlled Reliance Industries (RIL) on Thursday became the first company to cross Rs 8 trillion in terms of market capitalisation (market-cap), becoming the country's most valued firm. RIL's market capitalisation (m-cap) stood at Rs 8.04 trillion. In intra-day deals, the stock hit a new high of Rs 1,273.55, up over 1%, extending its gains over the past four trading days. The stock settled at Rs 1,269.70, up 1.86 per cent.

SECTORAL TREND

Shares of pharmaceutical companies extended their upward journey with the Nifty Pharma index hitting its 52-week high on the National Stock Exchange (NSE), on positive corporate announcements from Strides Pharma Science and Lupin.

Lupin, Cipla, Cadila Healthcare, Dr Reddy’s Laboratories, Aurobindo Pharma, Divi’s Laboratories, Sun Pharmaceutical Industries from the index were up in the range of 1% to 5% on the NSE. Of these Sun Pharma, Divi’s Laboratories and Cipla have hit their respective 52-week highs in intra-day trade.

LARSEN & TOUBRO UP ON BUYBACK PLANS

Shares of Larsen & Toubro (L&T) settled 2.30% higher at Rs 1,352.50 on the BSE after its board approved the proposal for buyback of equity shares of upto Rs 90 billion at a maximum price of Rs 1,500 per share.

 
“The board of directors of the Company at its meeting held today has approved a proposal to buyback up to 60 million equity shares of the Company being 4.29% of the total paid up equity share capital, at a maximum price of Rs 1,500 per share for an aggregate amount of Rs 90 billion,” L&T said in a statement.

GLOBAL MARKETS

Asian shares slipped on Thursday amid speculation US President Donald Trump's political position could be threatened by the legal woes of two former advisers and as fresh US-China tariffs took effect.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 per cent. Hong Kong's Hang Seng index stumbled 0.6 per cent while Chinese shares see-sawed between positive and negative territory. The blue-chip index was last up 0.4 per cent. Elsewhere, Japan's Nikkei added 0.2 per cent.

(With Reuters inputs)

3:40 PM IST Nifty sectoral gainers and losers of the day

3:37 PM IST BSE Sensex: L&T, RIL, NTPC among top gainers of the day

3:35 PM IST Market at close The S&P BSE Sensex settled at a fresh record closing high of 38,337, up 51 points, while the broader Nifty 50 index closed at a new high of 11,583, up 12 points. In intra-day deals, the S&P BSE Sensex hit a new all-time high of 38,487.63. The Nifty50 index, on the other hand, touched its record high level of 11,620.70.

3:26 PM IST JB Chemicals surges 12% as board mulls share buyback proposal JB Chemicals & Pharmaceuticals has rallied 12% to Rs 338 on the BSE in intra-day trade after the company announced that its board will meet on August 31, 2018, to consider a share buyback proposal. READ MORE

3:19 PM IST Kerala flood hits spice market as shortage in supply pushes up prices Those entering the Khari Baoli market in Old Delhi are greeted with the distinct aroma of cardamoms, pepper and other spice. But, if one wants to buy any, they will have to now shell out more. The flood in Kerala — the source of many of these spices — has hit supply. READ MORE

3:02 PM IST MFs gain larger share in June quarter; FPIs drop to lowest in 4 years In the past three years, mutual funds’ (MFs) equity investments have accelerated even as foreign portfolio investors (FPI) inflows have seen massive de-growth from the FY15 peak. This reflects in the latest June quarter shareholding data, where MF ownership in the top 200 stocks — which account for 75 per cent of India’s market capitalisation — has scaled new highs, while that of FPIs has dropped to its lowest level in four years. READ MORE

2:45 PM IST From Merc to Unilever, India Inc takes advantage of demand to raise prices From Mercedes-Benz AG to Unilever, companies in India are finding power to pass on higher costs to consumers, a sign that demand in the world’s fastest-growing major economy is well-entrenched. READ MORE

2:32 PM IST Top gainers in BSE 500: COMPANY PRICE() CHG() CHG(%) VOLUME J B CHEM & PHARM 330.50 27.15 8.95 144766 ZENSAR TECH. 1561.00 110.80 7.64 14684 ITI 93.15 6.55 7.56 301867 J KUMAR INFRA 235.00 14.75 6.70 37522 KAJARIA CERAMICS 487.95 30.30 6.62 333307 » More on Top Gainers

2:17 PM IST Gold falls as US tariff fears, rate hike views buoy dollar Gold prices fell on Thursday, after hitting a one-week high in the previous session, as fears of another round of US tariffs on China and expectations of higher interest rates lifted the dollar. Spot gold was down 0.3 per cent at $1,191.62 an ounce. Prices hit their highest since Aug. 13 at $1,201.51 in the previous session, but failed to hold the psychological $1,200 level after recovering from 1-1/2 year lows touched last week. US gold futures were down 0.5 percent at $1,197.8. READ MORE

1:59 PM IST Market Check Index Current Pt. Change % Change   S&P BSE SENSEX 38,326.84 +41.09 +0.11   S&P BSE SENSEX 50 12,126.21 +16.36 +0.14   S&P BSE SENSEX Next 50 34,759.85 +125.06 +0.36   S&P BSE 100 11,883.73 +20.11 +0.17   S&P BSE Bharat 22 Index 3,665.26 -4.42 -0.12 (Source: BSE)

1:56 PM IST STOCK ALERT RIL becomes first Indian company to cross Rs 8 trillion in market cap Reliance Industries on Tuesday became the first company to cross Rs 8 trillion in terms of market valuation, becoming the country's most valued firm. READ MORE Stock quote:

1:44 PM IST NEWS ALERT Reliance Industries (RIL) becomes the first company with a market cap of Rs 8-trillion

LIVE UPDATES

Nifty sectoral gainers and losers of the day


BSE Sensex: L&T, RIL, NTPC among top gainers of the day


Market at close

The S&P BSE Sensex settled at a fresh record closing high of 38,337, up 51 points, while the broader Nifty 50 index closed at a new high of 11,583, up 12 points. In intra-day deals, the S&P BSE Sensex hit a new all-time high of 38,487.63. The Nifty50 index, on the other hand, touched its record high level of 11,620.70.
JB Chemicals surges 12% as board mulls share buyback proposal

JB Chemicals & Pharmaceuticals has rallied 12% to Rs 338 on the BSE in intra-day trade after the company announced that its board will meet on August 31, 2018, to consider a share buyback proposal. READ MORE

Kerala flood hits spice market as shortage in supply pushes up prices

Those entering the Khari Baoli market in Old Delhi are greeted with the distinct aroma of cardamoms, pepper and other spice. But, if one wants to buy any, they will have to now shell out more. The flood in Kerala — the source of many of these spices — has hit supply. READ MORE
MFs gain larger share in June quarter; FPIs drop to lowest in 4 years

In the past three years, mutual funds’ (MFs) equity investments have accelerated even as foreign portfolio investors (FPI) inflows have seen massive de-growth from the FY15 peak. This reflects in the latest June quarter shareholding data, where MF ownership in the top 200 stocks — which account for 75 per cent of India’s market capitalisation — has scaled new highs, while that of FPIs has dropped to its lowest level in four years. READ MORE

From Merc to Unilever, India Inc takes advantage of demand to raise prices

From Mercedes-Benz AG to Unilever, companies in India are finding power to pass on higher costs to consumers, a sign that demand in the world’s fastest-growing major economy is well-entrenched. READ MORE

Top gainers in BSE 500:

COMPANY PRICE() CHG() CHG(%) VOLUME
J B CHEM & PHARM 330.50 27.15 8.95 144766
ZENSAR TECH. 1561.00 110.80 7.64 14684
ITI 93.15 6.55 7.56 301867
J KUMAR INFRA 235.00 14.75 6.70 37522
KAJARIA CERAMICS 487.95 30.30 6.62 333307
» More on Top Gainers
Gold falls as US tariff fears, rate hike views buoy dollar

Gold prices fell on Thursday, after hitting a one-week high in the previous session, as fears of another round of US tariffs on China and expectations of higher interest rates lifted the dollar.

Spot gold was down 0.3 per cent at $1,191.62 an ounce. Prices hit their highest since Aug. 13 at $1,201.51 in the previous session, but failed to hold the psychological $1,200 level after recovering from 1-1/2 year lows touched last week. US gold futures were down 0.5 percent at $1,197.8. READ MORE

Market Check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,326.84 +41.09 +0.11
 
S&P BSE SENSEX 50 12,126.21 +16.36 +0.14
 
S&P BSE SENSEX Next 50 34,759.85 +125.06 +0.36
 
S&P BSE 100 11,883.73 +20.11 +0.17
 
S&P BSE Bharat 22 Index 3,665.26 -4.42 -0.12

(Source: BSE)
STOCK ALERT RIL becomes first Indian company to cross Rs 8 trillion in market cap

Reliance Industries on Tuesday became the first company to cross Rs 8 trillion in terms of market valuation, becoming the country's most valued firm. READ MORE

Stock quote:


NEWS ALERT Reliance Industries (RIL) becomes the first company with a market cap of Rs 8-trillion
SEBI chief calls for caution in mutual funds' debt investments

India's debt mutual fund managers need to be vigilant and appropriately value their investments in corporate papers, even as a bulk of the money comes from institutional investors, the chief of the country's market regulator said on Thursday. READ MORE
Reliance Power unit wins $56 million arbitration award; shares up 0.74%

Reliance Power on Thursday said its wholly-owned subsidiary Reliance Power Netherlands BV has won an international arbitration award of USD 56 million (Rs 390 crore) against Prestige Capital Holdings (a Seychelles-based company) and Kokos Jiang. Reliance Power said the arbitration related to a contractual dispute in the context of company's coal mines in Indonesia.

Shares of Reliance Power were trading 0.74 per cent higher at Rs 33.95 apiece on BSE. READ MORE

Sebi cracks the whip on investors for trading in illiquid stock options

Markets regulator Securities and Exchange Board of India (Sebi) has issued show cause notice to over 500 investors, seeking explanation over alleged illicit gains made through trading in illiquid stock options. READ MORE

FMCG stocks gain; Nestle India, Britannia, Dabur, GSK Consumer hit new high

Shares of fast moving consumer goods (FMCG) companies were on a roll with Nestle India, Britannia Industries, Godrej Consumer Products, Dabur India and GlaxoSmithkline Consumer Healthcare have rallied up to 7%, hitting their respective new highs on the BSE in an otherwise subdued market. READ MORE

Customers' needs and perceptions have evolved: Vikas Seth, CEO, Bharti AXA

Vikas Seth, managing director and chief executive officer of Bharti AXA Life Insurance Company, claims there is a shift in customers’ needs and they are demanding more protection policies. He talks to Advait Rao Palepu about the company’s expansion plans, industry trends and how the macro environment will affect the life insurance industry. READ MORE HERE
Vikas Seth, CEO of Bharti AXA life insurance

RCom completes sale of some assets to Reliance Jio for Rs 20 billion

Reliance Communications on Thursday said it has completed the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 20 billion, to Mukesh Ambani-backed Reliance Jio Infocomm (RJIO).
 
The transaction entailed 248 nodes covering close to 5 million sq. ft. of the area, used for hosting the telecom infrastructure, all of which now stands transferred to Jio, RCom said in a statement. READ MORE

Stock reaction:


India's increased weightage on MSCI EM index yet to yield results

The increasing weightage in recent times of India in the MSCI Emerging Markets (EM) Index has not translated into additional flow of foreign money. Foreign funds have been net sellers by little over Rs 29.61 billion (little over $0.4 billion at the current exchange rate) this year, though this is still better than many other EMs. READ MORE

Markets at noon

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,337.47 +51.72 +0.14
 
S&P BSE SENSEX 50 12,127.28 +17.43 +0.14
 
S&P BSE SENSEX Next 50 34,769.65 +134.86 +0.39
 
S&P BSE 100 11,885.10 +21.48 +0.18
 
S&P BSE Bharat 22 Index 3,663.92 -5.76 -0.16

Comexes tighten noose around errant traders; penalty for non-genuine deals
 
Tightening the noose on errant traders, commodity exchanges (comexes) have levied a 100 per cent penalty on members facilitating non-genuine trades.
 
While comexes had already issued guidelines to identify non-genuine or errant traders, a circular issued by both national platform— Multi Commodity Exchange of India (MCX) and National Commodity and Derivatives Exchange (NCDEX)—dated August 20 made members responsible for such trades. Earlier, comexes used to issue only warnings to the concerned members. READ MORE
I see lot of retail flows this year from FD investors: Amfi chairman
 
The Association of Mutual Funds in India (Amfi) will be holding the second edition of its annual MF Summit today. A Balasubramanian, chairman of Amfi and chief executive officer of Aditya Birla Sun Life MF, talks about what lies ahead for the industry. Read full interview here
Nifty Pharma index hits 52-week high; Cipla, Sun Pharma touch 52-week highs
 
Shares of pharmaceutical companies extended their upward journey with the Nifty Pharma index hitting its 52-week high on the National Stock Exchange (NSE), on positive corporate announcements from Strides Pharma Science and Lupin.
 
Lupin, Cipla, Cadila Healthcare, Dr Reddy’s Laboratories, Aurobindo Pharma, Divi’s Laboratories, Sun Pharmaceutical Industries from the index were up in the range of 1% to 5% on the NSE. Of these Sun Pharma, Divi’s Laboratories and Cipla have hit their respective 52-week highs in intra-day trade. READ MORE
ANALYSIS Understanding the recent market rally
 
The pattern of financial returns in the last month have been affected by unusual circumstances. The rupee has fallen against the dollar. Gold and silver have both lost ground.
 
However, the Nifty is up and there's been positive returns across every sector. Logically, we would expect export-oriented stocks to have done well, given that the rupee has weakened and is expected to fall further. However, this is also when Q1 corporate results have come in, and those have definitely influenced trading. READ MORE
NEWS UPDATE Arun Jaitley takes charge as FM after a three-month break due to surgery
 
A little more than three months after Arun Jaitley underwent a successful kidney transplant surgery, he is set to take back charge of Finance and Corporate Affairs Ministry at 11 am today. Piyush Goyal, who was the caretaker Finance Minister in Jaitley’s absence, will continue as Railways and Coal Minister.
 
Jaitley underwent surgery at the All India Institute of Medical Sciences (AIIMS) on May 14. He had been keeping unwell since early April due to kidney-related problems and chest infection. The initial assessment by the doctors post-surgery was that he would take at least eight weeks to recover. READ MORE


MARKET DEBUT CreditAccess Grameen makes weak debut; lists 9% below issue price
 
Shares of CreditAccess Grameen made a weak debut by listing at Rs 385, 9% below its issue price of Rs 422 per share on the BSE. On the National Stock Exchange (NSE), the stock opened at Rs 390. 
 
CreditAccess Grameen had concluded an Rs 11.31 billion initial public offer (IPO). The issue was subscribed 2.22 times mainly by qualified institutional buyer (QIB). READ MORE
Rise in share of equity funds boosts HDFC AMC's Q1; profits up 25%
 
After strong listing gains on August 6, the HDFC AMC stock corrected by three per cent to Rs 1,760.65 on Tuesday. However, analysts believe that given the potential for growth, the stock could see some upside from these levels.
 
In its June quarter results, the first after listing, the company clocked 25 per cent year-on-year growth in net profit to Rs 2.1 billion, driven by expansion of its equity assets under management (AUM). READ MORE
Market Check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,349.36 +63.61 +0.17
 
S&P BSE SENSEX 50 12,132.83 +22.98 +0.19
 
S&P BSE SENSEX Next 50 34,720.52 +85.73 +0.25
 
S&P BSE 100 11,887.19 +23.57 +0.20
 
S&P BSE Bharat 22 Index 3,665.74 -3.94 -0.11

STOCK ALERT Mahanagar Gas falls 7% after huge block deals

Shares of Mahanagar Gas Limited (MGL) have slipped 7.4% to Rs 836 per share on the National Stock Exchange (NSE) in early trade after a nearly 26% or 25 million equity shares of the company changed hands on the counter. Till 09:30 am; a combined 25.31 million equity shares representing 25.6% of total equity of MGL changed hands on the NSE and BSE, the exchanges data show READ MORE
TOP GAINERS ON BSE

COMPANY PRICE() CHG() CHG(%) VOLUME
ITI 94.30 7.70 8.89 168981
WELSPUN CORP 157.30 8.65 5.82 309775
KWALITY 27.10 1.29 5.00 113056
GLAXOSMITH C H L 7455.20 340.45 4.79 1691
WELSPUN INDIA 67.90 2.85 4.38 308115
» More on Top Gainers
Emkay on Gujarat Industries Power Ltd

By Mar’19, GIPCL is expected to commission another 75MW solar capacity, which it won under the GUVNL tender. The PPA for the same has been signed at Rs2.67/unit. We maintain our earnings and target price of Rs137 (0.5x FY20E P/BV). Maintain BUY.
Edelweiss on Magma Fincorp

With potent catalysts—strategic roadmap and targeted milestones—Magma is a turnaround story set to clock 2.2% RoA and ~11% RoE (post capital) by FY20E. Well-entrenched credentials and improving risk-adjusted returns are potent re-rating triggers. Factoring in transition to IND-AS and higher-thananticipated coverage, we cut target price to Rs 210 (earlier Rs 238). Maintain ‘BUY’.
MUST READ Saudi said to shelve Aramco listing plan, oil giant disbands advisors
 
Saudi Arabia has called off both the domestic and international stock listing of state oil giant Aramco, billed as the biggest such deal in history, four senior industry sources said on Wednesday.
 
The financial advisors working on the proposed listing have been disbanded, as Saudi Arabia shifts its attention to a proposed acquisition of a "strategic stake" in local petrochemicals maker Saudi Basic Industries Corp , two of the sources said. READ MORE


Jefferies on consumer sector

The much-needed price hikes have returned in categories such as detergents, skin care, hair oil and soap, led by Hindustan Unilever. Given inflationary pressures in food RMs as well, we expect food companies as well to undertake pricing actions going forward. While gradual demand recovery is underway, as suggested by Q1FY19 results, peaking margins and stretched valuations make us less bullish on staples, with only select BUYs. Prefer discretionary
GDP could grow at 7.7% in Q1, take a hit on weak farm growth: SBI
 
Lending major State Bank of India (SBI) on Wednesday said that its Composite Leading Indicator (CLI) has hinted a GDP growth of 7.7 per cent during the first quarter of 2018-19.
 
The bank has developed -- SBI CLI -- to detect early signals of turning-points in economic activity by taking the basket of 18 leading indicators. READ MORE
RCom bond test tomorrow: Will bondholders take a haircut or move NCLT?
 
Reliance Communications (RCom) will offer to settle dues worth $300 million with its overseas bondholders in a meeting on Friday. Bondholders will have to either take a steep haircut on their investments or move the National Company Law Tribunal (NCLT), experts said.
 
Bankers, however, feel the bondholders would prefer taking a haircut as moving the NCLT would derail the debt restructuring plan of RCom. “The offer is not good at all. But there are no better options,” said a banker, asking not to be named. READ MORE
Nifty sectoral trend


BSE Sensex opening gainers and losers


Market at open
 
The indices opened to fresh record highs with the Nifty touching 11,600 for the first time. At 9:15 AM, the S&P BSE Sensex was trading at 38,395, up 109 points while the broader Nifty50 was ruling at 11,602, up 31 points.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,318.38 +32.63 +0.09
 
S&P BSE SENSEX 50 12,121.12 +11.27 +0.09
 
S&P BSE SENSEX Next 50 34,725.77 +90.98 +0.26
 
S&P BSE 100 11,877.78 +14.16 +0.12
 
S&P BSE Bharat 22 Index 3,679.19 +9.51 +0.26

Top trading ideas by Religare Broking for today:
 
Biocon
Rec: BUY
Last Close: Rs 612.30
Initiation range: Rs 610-615
Target: Rs 660
Stop loss: Rs 592
 
After retesting its support zone of 200 EMA on the daily chart, BIOCON has swiftly rebounded of late and looks upbeat to maintain this uptrend momentum. Further existence of support zone of short-term moving averages i.e. (100/50) EMA and bullish reversal in the pharma sector are added positive. We advise traders to create fresh longs as per the mentioned levels.
 
Technical calls by HDFC Securities:
 
Buy Axis Bank
Target: Rs 690
Stop-loss: Rs 600
 
Symmetrical Triangle breakout on the monthly charts, indicating a continuation of an uptrend. Breakout from consolidation, which held for last 14 quarters. Volumes have been rising along with the price rise for the last three months. The stock price has been trading above 20,50,100 and 200 DMA. Indicators like MACD and ADX have turned bullish on the daily and weekly charts. We recommend buying AXISBANK for the upside target of 690, keeping SL at 600.

Click here for more
Nifty view by HDFC Securities:
 
Nifty has been registering new all-time highs day by day and has reached above 11,570. Nifty is in continuation of an uptrend and next resistance is seen at 11,768, which happened to be Fibonacci extension levels of the recent swings. As far as support is concerned 11,500 would be the key level to watch out for.
Top trading ideas by Prabhudas Lilladher:
 
BUY KAJARIA CERAMICS
CMP: Rs 458.15
TARGET: Rs 530
STOP LOSS: Rs 420
 
The stock has witnessed a great erosion in recent times from the peak of 765 and now has indicated a bottoming out pattern at around 406 levels. Currently, a positive bullish candle pattern indicates strength and has got the potential to rise further in the coming days to scale to further new heights. The RSI has given a sharp steep reversal and has maintained a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 530 keeping a stop loss of 420. Click here for more
Nifty outlook by Prabhudas Lilladher:
 
The market is likely to consolidate or maybe oscillate in a narrow range as the ADX on the daily chart has stopped its up move which implies less momentum in days to come. The support for the day is seen at 38,050/11,500 while resistance is seen at 38480/11630. Bank Nifty would have a range of 28,000-28,460. ICICI and Axis Bank have regained its momentum and we anticipate it to do well for Thursday’s expiry. Pharma sector, too, has got in a new round of momentum.
Impact of floods on Kerela's economy: CARE Ratings

The impact of the floods on Kerala is quite sharp and the economic consequences significant. This is beyond the suffering caused to the families affected by the flood. 

The plantation sector and tourist segment would be impacted the most in terms of contribution to the GSDP. Lower spending levels during the festival of Onam will impact the consumer goods industry (including auto) and gold. Growth in GSDP can be affected by up to 1%. 

Bank NPAs will be pressurized though the impact is difficult to conjecture at this time. The old private banks which have a strong presence would be the ones affected the most. 

Growth in credit of Kerala Business i.e. in state of Kerala will increase from an average of 14% to 17-21% as households and small units borrow more for rebuilding their homes/business. However, this growth will be shared with NBFCs. 

Infrastructure losses would be high for roads (Rs10-12,000 cr), airports (Rs30-40 cr) and housing. 

The government’s deficit would be under pressure if there is spending on relief which is not compensated by cuts elsewhere. Growth in revenue will also be affected when production levels become subdued. 

Given the rather unchanged nature of overall remittances to the country, we do not believe there will be any significant incremental inflows from NRIs housed overseas. 
 
Today's picks
 
Tata Steel
Current price: Rs 582
Target price: Rs 572
 
Keep a stop at Rs 588 and go short. Add to the position between Rs 575 and Rs 577. Book profits at Rs 572.

Click here for more
Stocks in news

·         Ultratech Cement received Competition Commission of India’s approval for the acquisition of cement business of Century Textiles
 
·         Bharat Petroleum likely to keep Mumbai refinery shut for two months
 
·         Tata Motors launched its compact SUV Nexon in Sri Lanka priced between 1.99 million and 4.6 million Sri Lankan rupees
 
·         HDFC entered into an agreement for acquiring 30.5 lakh shares, representing 25.01 percent share capital of Good Host Spaces Private ltd
 
·         Nestle India partnered with Flipkart to launch Maggi Special Masala noodles. 
 
·         Granules India received approval for Abbreviated New Drug Application from the US FDA
 
·         ITI Ltd received Letter of Intent from Maharashtra State Government for execution of MahaNet-I project (Bharat Net II project) for value of Rs 2,658 cr
 
·         Prataap Snacks plans to acquire 80% equity in Gujarat-based Avadh Snacks Private for Rs 148 crore
 
·         Lupin received tentative FDA approval for generic Nudovra tablets. The tablets had annual sales of approximately $31.4 million in the U.S.
 
·         Jet Airways to consider cost reduction initiatives and turnaround plan on Aug. 27.

(Source: IIFL report)
Oil jumps 3% on big US crude draw, Iran sanctions
 
Oil prices rose 3 percent on Wednesday, with Brent crude futures hitting a three-week high, after US government data showed a larger-than-expected draw in crude inventories and as Washington’s sanctions on Iran signalled tightening supplies.
 
Brent crude futures rose $2.15, or 3 per cent, to settle at $74.78 a barrel. The global benchmark reached $75.00 during the session, the highest since July 31. US West Texas Intermediate (WTI) crude futures rose $2.02 to settle at $67.86 a barrel, a 3.1 per cent gain.
MARKET COMMENT Amar Ambani, head of research, IIFL

The world will be watching the crucial meeting between US and China to discuss trade issues. US President Donald Trump recently expressed he is not expecting much from these talks. Meanwhile, the minutes from Federal Reserve's meeting show that the central bank plans to continue its rate hikes amid a strengthening economy.

The domestic market closed on a flat note on Tuesday, with weakness in banks, metals and FMCG sectors. Nifty and Sensex couldn't hold on to the record highs it touched during the day, as profit booking crept in. Foreign investors and domestic funds were net buyers on Tuesday.  The outlook is a flat to positive start. US markets ended mixed. Asian shares are trading lower. Oil prices will be in focus after Saudi Arabia reportedly called off listing of state oil giant Aramco.
 
SGX Nifty
 
Trends on SGX Nifty indicate a flat to positive opening for the broader index in India, a gain of 8 points or 0.07 per cent. Nifty futures were trading around 11,636- level on the Singaporean Exchange.
US, China resume trade talks before fresh tariffs take effect on Thursday
 
US and Chinese officials met for the first time in more than two months trying to find a way out of their deepening trade conflict, but there was no evidence that the low-key discussions would halt a new round of US tariffs due on Thursday.
 
A delegation of Chinese officials entered the US Treasury Department on Wednesday for talks, video on CNBC showed. Business groups expressed hope that the two-day meeting would mark the start of serious negotiations over Chinese trade and economic policy changes demanded by President Donald Trump. READ MORE
Antique Stock Broking on cement sector

Amid uncertainties across the variables over the next year, we prefer companies with comfort on numbers as well as valuations. We like ACC, Ambuja, and Dalmia Bharat on relative basis at current valuations. The Holcim group companies have shown a sharp improvement in profitability in current quarter, led by cost control and better-than-industry pricing; sustainability of the 2QCY18 performance could rerate the stocks and close gap of trading multiple with other large caps in the space.
Anand Rathi on IIFL Holdings Limited

Management is expecting a growth rate of 30% to 35% year-on-year on its NBFC Business and targeting net new money to be raised on the wealth division in the region of 20% to 25% of its last year assets. We expect the trend of increasing market share for the private players to continue on the back of capital constraints in Public Sector Banks. We initiate our coverage on IIFL Holdings Limited with a BUY rating and target price of Rs 910 per share.
MARKET COMMENT Rabobank on FOMC minutes

The minutes of the July 31-August 1 meeting of the FOMC did not set off fireworks in the financial markets. The next rate hike in September was signalled by the phrase ‘Many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation.’ For now, we stick to our forecast of 3 hikes this year, but if the trade conflicts do not escalate much further a 4th hike becomes more likely.

File photo of US Federal Reserve. Photo: Shutterstock

FOMC minutes: More hikes coming soon
 
US central bankers discussed raising interest rates soon to counter excessive economic strength but also examined how global trade disputes could batter businesses and households, minutes of the Federal Reserve’s last policy meeting showed on Wednesday.
 
Many participants said it would likely soon be appropriate to raise interest rates. They said they generally expected that US GDP growth would slow in second half of 2018 but remain above potential. Escalation of trade disputes was a potentially consequential downside risk for US economy.
Caution creeps into Asian markets as US tariff deadline looms
 
Asian shares started cautiously on Thursday as a deadline loomed for fresh US tariffs on China and amid speculation US President Donald Trump’s political position could be threatened by the legal woes of two former advisers.
 
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1 per cent. Japan's Nikkei and South Korea's Kospi index ea ch climbed 0.2 per cent.
Wall Street end mixed as S&P marks longest bull run
 
US stocks were mixed on Wednesday, with the Nasdaq gaining on the strength of tech stocks while the S&P 500 was little changed as it marked its longest bull-market run. The biggest boost to the S&P 500 came from technology stocks which advanced 0.5 percent.
 
The Dow Jones Industrial Average fell 88.69 points, or 0.34 per cent, to 25,733.6, the S&P 500 lost 1.14 points, or 0.04 per cent, to 2,861.82 and the Nasdaq Composite added 29.92 points, or 0.38 per cent, to 7,889.10.
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