MARKET WRAP: Indices end at new closing highs, Nifty at 11571; pharma gains

The benchmark indices settled broadly flat on Tuesday amid firm Asian markets.

The S&P BSE Sensex settled at a fresh record closing high of 38,286, up 7 points, while the broader Nifty 50 index closed at a new high of 11,571, up 19 points. In intra-day deals, the S&P BSE Sensex hit a new all-time high of 38,402.96. The Nifty50 index, on the other hand, touched its record high level of 11,581.75.

Among sectoral indices, the Nifty Realty index slipped around 2 per cent due to fall in shares of Housing Development and Infrastructure and Unitech. On the other hand, Nifty Pharma index was the lead gainer, rising over 1.5 per cent led by Glenmark Pharmaceuticals and Piramal Enterprises.


Rupee rose to its highest in a week on Tuesday tracking Asian currencies after US President Donald Trump said in interview to Reuters that he was "not thrilled" with the Federal Reserve's interest rate hikes.

Global Markets

Asian stocks rose on Tuesday, supported by hopes Beijing and Washington would dial back trade hostilities, though comments from the US president about the yuan and Federal Reserve policy capped gains and weighed on the dollar.

In an interview with Reuters on Monday, President Donald Trump said that China was manipulating its currency to make up for having to pay tariffs imposed by Washington on some imports from China. This kept global trade conflict concerns alive and dented some of the market optimism ahead of upcoming US-China trade talks.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.6 per cent. Australian stocks lost 1 per cent, South Korea's KOSPI gained 0.95 per cent and Japan's Nikkei advanced 0.2 per cent. Chinese shares rose, with the Shanghai Composite Index climbing more than 1 per cent, helped by bargain hunting of consumer and healthcare firms after their recent slump.
(with Reuters inputs)


Nifty Pharma index ends 1.54% higher. Top gainers:

GLENMARK PHARMA. 638.30 608.20 30.10 4.95
PIRAMAL ENTERP. 2842.00 2771.80 70.20 2.53
CADILA HEALTH. 386.90 377.45 9.45 2.50
LUPIN 889.20 869.25 19.95 2.30
SUN PHARMA.INDS. 634.90 626.35 8.55 1.37

Nifty sectoral gainers and losers of the day

BSE Sensex: Sun Pharma, Axis Bank, COAL India among top gainers of the day, Tata Steel top loser

Market at close

The S&P BSE Sensex settled at a fresh record closing high of 38,286, up 7 points, while the broader Nifty 50 index closed at a new high of 11,571, up 19 points. In intra-day deals, the S&P BSE Sensex hit a new all-time high of 38,402.96. The Nifty50 index, on the other hand, touched its record high level of 11,581.75.
Gold at 1-week high as Trump remarks on Fed weigh on dollar

Gold prices on Tuesday climbed to a one-week high on the back of a weaker dollar, after US President Donald Trump said he was "not thrilled" with the Federal Reserve for raising interest rates.
Spot gold rose 0.4 per cent to $1,194.81 an ounce, after touching $1,196.27 earlier, the highest level since Aug. 14. US gold futures climbed 0.5 per cent to $1,200.60 an ounce. READ MORE

Loans for Indian firms may get costlier as foreign banks turn selective

Indian firms have enjoyed the cheapest foreign-currency loan costs in more than a decade but may find the tides turning as banks become more selective. READ MORE

India tells state oil firm ONGC to list overseas unit

The Indian government has asked its biggest state-owned firm, Oil and Natural Gas, to list its overseas unit ONGC Videsh, according to a letter seen by Reuters.
The move to float the unit - which has investments in 11 producing assets in countries including Russia, Brazil and Iran - is part of a government push to sell state-assets to raise funds. READ MORE

Nifty's journey from 1,000 to 11,500 levels: All you need to know

As Nifty50 hit a lifetime high of 11,581.75 on Tuesday, it is notable to know that the index hovered around 1,000 levels in back in 2002.
Over these 16 years, the representation in Nifty50 index has undergone a sea change in consonance with the changes in the underlying economy. As new sectors and companies evolved, their stocks found place in the benchmark index. Some, on the other hand, lost relative importance. READ MORE

India's GDP brawl could hurt Modi politically and prevent a rupee reset

Just as some analysts were starting to believe in a reset for the Indian rupee, with the government becoming more relaxed about letting it weaken, history got in the way.
The history in question is past GDP data, which haven’t been officially released after India reworked its calculation methodology in early 2015. But the report of a subcommittee tasked to suggest ways to link the old and the new GDP series was recently made public. The panel’s calculations suggest growth averaged a tad above 8 per cent in the 10 years through fiscal 2014, compared with 7.4 per cent since then. READ MORE

Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 38,275.13 -3.62 -0.01
S&P BSE SENSEX 50 12,107.64 +10.64 +0.09
S&P BSE SENSEX Next 50 34,663.00 +257.65 +0.75
S&P BSE 100 11,863.18 +22.09 +0.19
S&P BSE Bharat 22 Index 3,659.77 +4.53 +0.12

(Source: BSE)
Top gainers in BSE 500:

KAJARIA CERAMICS 452.10 38.05 9.19
SUVEN LIFE SCIE. 253.10 21.25 9.17
CESC 1015.65 75.15 7.99
WELSPUN CORP 149.20 8.15 5.78
CUMMINS INDIA 746.75 38.25 5.40
» More on Top Gainers
LIC Housing Finance hits four-month high ahead of Q1 results

Shares of LIC Housing Finance hit a four month high of Rs 569 per share, rising 3% on the BSE ahead of April-June quarter (Q1FY19) results on Friday, August 24, 2018. READ MORE

Growth in key markets perks up Aurobindo stock, earnings to increase

Shares of Aurobindo Pharma have been gaining on the bourses, and are up over 9 per cent since the June quarter results, announced a few days ago. This took the total gains to about 25 per cent since the June lows of Rs 526.
Easing concerns over pricing pressure in the US, and Food and Drug Administration (FDA) inspections at Aurobindo’s manufacturing units are behind the upbeat sentiment. Continued traction in the US and boost from European markets continue to drive performance. READ MORE

Top fund houses turn overweight on capital goods amid capex revival signs

With capacity utilization showing improvement, money managers are raising their bets on the capital goods space. According to data collated by Edelweiss, top-five fund houses’ average overweight on capital goods stood at 536 basis points (bps) vis-a-vis Nifty 200. READ MORE

NSE, SGX joint trading at GIFT likely to take place by December

Amid arbitration proceedings, the proposed collaboration between the Singapore Exchange (SGX) and the National Stock Exchange (NSE) to jointly offer trading at Gujarat International Finance Tec (GIFT) City could take shape before the end of the year, said people with knowledge of the development. GIFT is India’s only International Financial Services Centre (IFSC). READ MORE

Floods will hit tyre & coffee industries

The stock market ignored bad news out of Turkey that led to a rout for emerging market currencies. Instead, investors hailed strong Q1 earnings reports, strong industrial activity and lower headline inflation. The resumption of China-USA trade talks was viewed with optimism since every global investor is hoping that the US backs down on threats of hiking import tariffs and, ditto the Chinese. READ MORE

Cement shares in focus; Ambuja Cements, India Cements up over 3%

Shares of cement companies were trading higher by upto 4% in anotherwise range bound market on Tuesday on expectations that the demand momentum will pick-up quickly post monsoon. READ MORE

First buyback can bring cheer to L&T's shareholders, say analysts

Buybacks are announced for a host of reasons, sometimes for the promoter to bump up his/her stake, or in lieu of a dividend or just to improve the return ratios. With Larsen & Toubro (L&T), analysts say, there could be more than one compelling reason behind the buyback plan. READ MORE

Markets at noon

Index Current Pt. Change % Change
S&P BSE SENSEX 38,252.52 -26.23 -0.07
S&P BSE SENSEX 50 12,094.53 -2.47 -0.02
S&P BSE SENSEX Next 50 34,538.72 +133.37 +0.39
S&P BSE 100 11,845.95 +4.86 +0.04
S&P BSE Bharat 22 Index 3,657.17 +1.93 +0.05

Meet Pallonji Mistry, the billionaire who can't spend his own fortune
Billionaire Pallonji Mistry has about 84 per cent of his estimated $20 billion fortune locked up in a legal battle with India’s largest conglomerate.
The conflict between Mistry and the Tata Group began with a boardroom coup in 2016 when the former’s son was ousted as chairman of the latter. Mistry is one of the largest shareholders in Tata Sons Ltd., which controls the $100 billion conglomerate, and his family has since filed numerous lawsuits against the holding company’s board, alleging suppression of minority interests and governance lapses. READ MORE

Pallonji Mistry

Net worth of nine realty firms dips 18% during IndAS 115 era: Study
The net worth of nine listed real estate companies has eroded by 18 per cent after the Indian accounting standards (IndAS) 115 accounting standard was implemented from April 1, says a new study. The nine companies are Godrej Properties, Prestige Estates Projects, Brigade Enterprises, DLF, Indiabulls Real Estate, Phoenix Mills, Sobha, Mahindra Lifespace Developers, and Puravankara. READ MORE
Coal India hits over two month high; stock up 3%
Shares of Coal India hit an over two-month high of Rs 292, up 3% on the BSE in an otherwise range bound market on expectations that government may defer stake sale in the company as the stock falls. The stock was trading at its highest level since June 11, 2018, on the BSE.
The government has advised Coal India that the deadline for a minimum 25% public holding has been deferred by two years since the stock has underperformed, the Economic Times report suggested quoting company executives. READ MORE
Flows through the SIP route could moderate going ahead: Experts
The mutual fund industry has seen moderation in flows, but investments through the systematic investment plans (SIPs) route continue to remain intact.
Data available with the Association of Mutual Funds of India (Amfi) shows that SIP contribution in July stood at Rs 75 billion — 21 per cent higher than the past 12-month average of Rs 62 billion. READ MORE
HUL, RIL, TCS among top gainers in Sensex's 8,000-point rally in 16 months
Rising crude oil prices, trade war fears, depreciating rupee and the possibility of higher inflation amid rising interest rates have failed to dent sentiment at the bourses over the past few months. The S&P BSE Sensex has been one of the best-emerging market (EM) index thus far in the calendar year 2018 (CY18) with a rise of over 12 per cent.
The index closed hit an all-time high of 38,402 levels on Monday, August 20 in intra-day trade. It took just 16 months for the index to achieve this feat after it closed above the 30,000 mark for the first time ever on April 26, 2017. READ MORE

Photo: Shutterstock

Stocks of paper companies rise by up to 89% on bumper June quarter
The share prices of paper companies have risen by up to 89 per cent over the past month, after stronger than expected earnings were reported by primary producers for the quarter ended June.
Leading branded copier maker JK Paper's share price rose 89 per cent on the BSE to trade currently at Rs 188. That of International Paper APPM has risen 49 per cent to Rs 465. Significant rises have also been seen in the shares of Ballarpur Industries, Seshasayee Paper, West Coast Paper and Tamil Nadu Newsprint, among others. READ MORE
Vadilal tanks 30% in two days as Ashish Kacholia offloads 5% stake
Shares of Vadilal Industries hit a fresh 52-week low of Rs 516.50, slipped 12% in early morning trade on Tuesday, after investor Ashish Kacholia offloaded 5% of its equity shareholding in ice cream maker through open market on Monday.
Yesterday, the stock tanked 20% to Rs 589 on the BSE and the National Stock Exchange (NSE). The stock plunged 35% in past six trading sessions from Rs 795 on August 10, 2018. READ MORE
Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 38,269.75 -9.00 -0.02
S&P BSE SENSEX 50 12,097.02 0.02 0.00
S&P BSE SENSEX Next 50 34,446.98 +41.63 +0.12
S&P BSE 100 11,843.27 +2.18 +0.02
S&P BSE Bharat 22 Index 3,658.92 +3.68 +0.10

Sebi mulls hiking minimum ticket size for investment in PMS schemes
The Securities and Exchange Board of India (Sebi) is considering doubling or even quadrupling the minimum ticket size for investment in portfolio management services (PMS) schemes. The regulator is worried about the current investment limit of Rs 2.5 million may be inadequate to prevent retail investors from using this route.
Investors without sufficient knowledge of the risks that accompany investment in PMS schemes could end up burning their fingers if there was a sharp correction in Indian equities. READ MORE
HCL Technologies stock reacts to company's share buyback plan

Nifty sectoral trend

BSE Sensex gainers and losers

Market at open
The indices opened to fresh record highs. At 9:16 AM, the S&P BSE Sensex was trading at 38,347, up 68 points while the broader Nifty50 was ruling at 11,575, up 24 points.
Top trading ideas by Prabhudas Lilladher
CMP: Rs 708.60
TARGET: Rs 760
The stock has indicated a higher bottom formation pattern in the daily chart and currently has given a positive bullish candle pattern to signify potential for further momentum in the upward direction and can scale upto 750-760 levels in the coming days. The RSI has indicated a steep rise along with the MACD showing a trend reversal to maintain a positive bias. With rising volume participation in recent times, we recommend a buy in this stock for an upside target of 760 keeping a stop loss of 665.
Market pre-open

Index Current Pt. Change % Change
S&P BSE SENSEX 38,358.10 +79.35 +0.21
S&P BSE SENSEX 50 12,114.29 +17.29 +0.14
S&P BSE SENSEX Next 50 34,483.85 +78.50 +0.23
S&P BSE 100 11,859.53 +18.44 +0.16
S&P BSE Bharat 22 Index 3,670.84 +15.60 +0.43

HCL Technologies shareholders approve Rs 40-bn share buyback offer
IT services major HCL Technologies on Monday said its shareholders have approved a proposal to buyback shares worth Rs 40 billion (Rs 4,000 crore). 
In a BSE filing, HCL Technologies said 99.59 per cent shareholders had voted in favour of the proposal. In July, HCL Technologies had announced a Rs 40 billion (Rs 4,000 crore) buyback programme for FY19 at a price of Rs 1,100 per equity share. READ MORE
Top trading ideas by Anand Rathi Research:
TARGET: Rs 2,840
STOP LOSS: Rs 2,688
The stock has started to retrace the five waves declining structure with a buy crossover in its momentum indicator MACD. The minimum target on the upside comes to 2840 whereas the support on the lower side is pegged at 2688.

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 life time 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 11,501 becomes a crucial support.
Weak rupee to have limited effect on sovereign rating of India: Fitch
Depreciation of the rupee against the dollar will have limited impact on sovereign ratings of India, even as pressure on the corporate and banking sectors is likely to increase, Fitch Ratings said on Monday.
There could be further bouts of pressure on markets as global monetary tightening progresses, it said. The impact on the ratings would be limited by the country's relatively strong external finances, especially the low level of external debt. READ MORE
SGX Nifty
Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a loss of 13 points or 0.11 per cent. Nifty futures were trading around 11,571- level on the Singaporean Exchange.
Trump doesn't expect much from China trade talks this week
US President Donald Trump does not expect much progress from trade talks with China this week in Washington, he told Reuters on Monday. Trump said in an interview that he had “no time frame” for ending the trade dispute with China, which threatens to impose tariffs on virtually all goods traded between the world’s two largest economies. 
Oil edges up on US sanctions against Iran, but trade dispute weighs
Oil prices edged up on Tuesday, supported by expectations of supply cuts once US sanctions against Iran bite in November, but capped by worries a Sino-US trade dispute will drag on fuel demand growth.
Brent crude oil futures were at $72.24 per barrel at 0104 GMT, up 3 cents from their last close. US West Texas Intermediate (WTI) crude futures were up 24 cents, or 0.4 per cent, at $66.67 per barrel.
Asia stocks capped, Nikkei trades lower
Asian stocks were capped and the dollar dipped on Tuesday after US President Donald Trump accused China and Europe of manipulating their currencies and said he was “not thrilled” with the Federal Reserve for hiking interest rates.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.02 per cent. Australian stocks lost 0.7 per cent, South Korea's KOSPI nudged up 0.1 per cent and Japan's Nikkei fell 0.6 per cent.
Wall Street rises on trade optimism
Wall Street’s major indexes rose on Monday on optimism over trade talks between the United States and China, though they fell from session highs after President Donald Trump criticized the Federal Reserve’s raising interest rates.
The Dow Jones Industrial Average rose 89.37 points, or 0.35 per cent, to 25,758.69, the S&P 500 gained 6.92 points, or 0.24 per cent, to 2,857.05 and the Nasdaq Composite added 4.68 points, or 0.06 per cent, to 7,821.01.
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