Market Live: Sensex rises 100 pts, Nifty above 9900 ahead of Reliance Industries AGM

10:20 am RIL AGM expectations: Reliance Industries shares rallied nearly 4 percent in morning trade to hit fresh 9-year high of Rs 1,587.7 ahead of its much awaited 40th Annual General Meeting that is scheduled to begin at 11 am.

While maintaining positive stance on the stock and expecting it to rise up to 17 percent, majority of brokerage houses expect the key focus in the Reliance’s AGM will be Jio followed by petrochemical and refining businesses.

Goldman Sachs

According to the research house, key focus points for the AGM would be segment wise capex expenditure in Q1FY18 and guidance for FY18.

Update on the timelines of new projects on core refining and petchem segment will also key to watch out for.

JP Morgan

The financial firm expects more clarity in AGM on new plans in telecom including launch of feature phones and new projects if any in Fiber to Home.

Bank of America Merrill Lynch

The stock rallied 12 percent month-to-date in anticipation of launch of low-cost VOLTE feature phone in AGM and gradual increase in implied tariffs.

According the research house, the focus would be on Jio and pdates on chemical projects.

10:00 am Buzzing: Share price of Gravita India jumped 5 percent intraday as it has started recycling and commercial production of PET Flakes at its Jamaica plant.

The company’s step down subsidiary Gravita Jamaica has started recycling and commercial production of PET Flakes (Polyethylene Terephthalate) by installing an ultra-modern PET Hot Wash Line with an annual capacity of 4800 MTPA.

Gravita Group has made an investment of Rs 6.5 crore for procuring and commissioning of this new ultra-modern recycling plant which is funded from the internal accruals of the company.

The plant is expected to generate revenues of approximately Rs 10 crore coupled with a gross margins of 37 percent in its initial year.

9:52 am Market Check: Equity benchmarks extended gains in morning trade, with the Sensex up 122.97 points at 32,027.37 and the Nifty up 38.50 points at 9,911.80.

Reliance Industries rose 3 percent ahead of company’s 40th Annual General Meeting at 11 am.

About 1,155 shares advanced against 584 declining shares on the BSE.

9:45 am Target ups on Wipro: Wipro’s Q1FY18 IT services revenue, at USD 1,972 million (up 0.9 percent QoQ), surpassed Street’s 1.7 percent decline estimate, while adjusted EBIT margin at 16 percent was bang in line.

Q2FY18 revenue growth guidance of -0.5-1.5 percent was muted. Key quarter highlights: 1) positive commentary on BFSI and energy & utilities verticals; 2) management has addressed internal issues impacting growth and expects industry-level growth from Q4FY18; and 3) announced buyback of 7.1 percent of total equity at Rs 320 per share amounting to Rs 11,000 crore.

Edelweiss believes, strong cash balance, healthy cash generation and undemanding valuations limit downside. The research house has maintained a buy call with revised target price at Rs 290 (from Rs 277 earlier).

9:35 am Correction likely?: Christopher Wood of CLSA said if Greed & Fear had to guess on the timing of a global stock market correction, it would be in the September and October period when markets finally take heed of continuing Fed hawkish talk.

But the question is, is the Federal Reserve chair Janet Yellen really going to continue to talk that hawkishly?, he feels.

9:15 am Market Check: Equity benchmarks rebounded with moderate gains in opening on Friday, backed by Reliance Industries (up 1.8 percent) and Wipro (up 5 percent) after solid earnings performance.

The 30-share BSE Sensex was up 51.64 points at 31,956.04 and the 50-share NSE Nifty gained 11.80 points at 9,885.10.

Balaji Telefilms was up 5 percent as Reliance Industries picked up 24.9 percent stake in the company.

Jaiprakash Associates gained 6 percent after Rakesh Jhunjhunwala bought over a percent stake in the company in June quarter. Jaypee Infratech also surged 6 percent.

Bharti Airtel, Lupin, Cipla, Hindalco, Sun Pharma and Asian Paints fell up to 2 percent.

Nifty Midcap was up 0.3 percent as about two shares advanced for every share falling on the BSE.

Aditya Birla Money, Mahindra CIE, Jubilant Life, Bata and Just Dial gained up to 5 percent.

Sintex Industries, Idea Cellular, GMR Infrastructure, RBL Bank, Ashok Leyland, Godfrey Phillips, InterGlobe Aviation and Jet Airways fell up to 4 percent.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.