Market Live: Sensex, Nifty mildly higher but Midcap holds early gains; BPCL dips

12:05 pm JLR’s car in electric version: All new Jaguar Land Rover cars will be available in an electric or hybrid version from 2020, Britain’s biggest carmaker said, as it speeds up plans to electrify its model range.

Last year, the company, owned by India’s Tata Motors, said it would offer greener versions of half of its new line-up by 2020, but it has now ramped up its plans.

Demand for electric models continues to rise sharply and in July Britain said it would ban the sale of new petrol and diesel cars from 2040 to cut pollution, replicating plans by France and cities such as Madrid, Mexico City and Athens.

Carmakers are racing to tap into growing demand for low-emissions models with Nissan launching a revamped version of its Leaf electric vehicle on Wednesday in a bid to better take on Tesla’s Model 3.

11:59 am IPO: The public issue of Dixon Technologies has fully subscribed on the second day.

The Rs 600-crore IPO has oversubscribed 1.18 times, as per data available on the National Stock Exchange.

The issue received bids for 28.11 lakh equity shares against issue size of 23.76 lakh shares (excluding anchor investors’ portion that already received good response).

On day one yesterday, the issue was subscribed 0.78 times as the reserved portion of qualified institutional investors saw subscription of 1.34 times and retail 0.78 times.

11:53 am Housing sector disruption: Shrugging off any slowdown in housing credit, the chief of the country’s largest mortgage lender, Keki Mistry, VC & CEO of Housing Development Finance Corporation (HDFC) says demand for housing credit remains strong.

Real Estate Regulatory Act (RERA) and goods and services tax (GST) has got nothing to do with the slowdown at least till June because RERA and GST were introduced after July 1. There is plenty of demand from individuals who are looking to buy a house, he said.

Average loan size is about Rs 26 lakh, similar to last year level and the growth is coming from PAN India. Mumbai, Bengaluru, Pune, many other cities are doing very well, he added.

According to him, new project launches slowed down in July, August due to RERA. There are several projects which may be ready, but can’t be disbursed as not registered under RERA.

RERA creates so much confidence for home buyers so disruptions in housing market right now will be very short-lived said Mistry.

11:43 am Market Check: Equity benchmarks were mildly higher in late morning trade. The selling in HDFC, Tata Motors, ITC and ICICI Bank capped market’s gains.

The 30-share BSE Sensex was up 29.13 points at 31,691.10 and the 50-share NSE Nifty rose 15.40 points to 9,931.60 but the broader markets continued to gain 0.7 percent.

BPCL, Tata Motors and NTPC were down 1-2 percent while Bank of Baroda, Dr Reddy’s Labs, Hindalco Industries, Sun Pharma, Hero Motocorp, Axis Bank, Eicher Motors and Indiabulls Housing gained 1-3.5 percent.

11:30 am Management interview: “2016 was a low period for the North American truck market but truck demand expected to improve from 2017 onwards,” Baba Kalyani, CMD of Bharat Forge said in an interview to CNBC-TV18.

He further said the company is running plants at full capacity.

“Q1FY18 performance was subdued but we have seen a jump in commercial vehicle sales in Q2 and expect sales to rise,” he said.

He feels GST issues are behind the company. “We are seeing strong upward move in all verticals,” he said.

He thinks India will emerge as a major defence manufacturer in the future. “We are looking at all opportunities including BEML and will be interested in buying stake in BEML,” Kalyani said.

11:15 am Stake sale: IDBI Bank has invited fresh bids for sale of its 13.71 percent stake in SIDBI, reports CNBC-TV18 quoting Cogencis.

11:05 am Trending news in September: Edelweiss said off late India’s exports have slowed down sharply, while that of EMs are holding up. Specifically, agri-sector is taking a significant brunt amid strong rupee. There is jump in import volumes across products (pulses, wheat, sugar) despite bumper output.

Impact of GST destocking in Q1FY18 is muted as slower manufacturing growth has been offset by higher trade services growth; and with WPI now out of deflation, distortions in real GVA are largely behind.

10:59 am Buzzing: Shares of NBCC gained nearly 3 percent intraday on order win worth Rs 464 crore.

The company has signed an agreement with Ministry of Health & Family Welfare, Government of India for planning, designing & construction of expansion of Sports Injury Centre, New Delhi amounting Rs 464 crore.

10:50 am Maruti market share: It could have been Renault and not Suzuki to own half of the Indian car market had the French car maker put in some serious thoughts about the invitation from the government of India to form a joint venture in early 80s.

By end of July Maruti Suzuki’s (MSIL) domestic market share stood at an enviable 51 percent, the best from the time Suzuki Motor Corporation (SMC) became a majority shareholder in the joint venture. Its best-ever market share came in 1997-98 when Maruti Udyog (as it was known then) clocked 83 percent share.

Maruti’s closest competitor Hyundai, which entered India in 1998, has only 16 percent share, as of today. Renault, which ultimately entered India in 2005 through joint venture with Mahindra & Mahindra (M&M) to make the Logan, has not covered much distance either. By end of July the French company had a share of just 3 percent while the JV with M&M was dissolved in 2010 itself.

10:41 am IPO: ICICI Bank shares gained more than 1 percent intraday after CNBC-TV18 report said the IPO of its general insurance company will open for subscription in the coming week.

ICICI Lombard General Insurance Company will launch its initial public offer of up to 8,62,47,187 equity shares on September 15.

The issue consists of offer for sale of up to 3,17,61,478 equity shares by promoter ICICI Bank, up to 5,44,85,709 shares by investor Fal Corporation. The issue also include a reservation of up to 43,12,359 equity shares for purchase by ICICI Bank shareholders.

The issue will close on September 19.

ICICI Lombard is the largest private-sector non-life insurer in India based on gross direct premium income in fiscal 2017.

DSP Merrill Lynch Limited, ICICI Securities and IIFL Holdings are global co-ordinators and book running lead managers to the issue.

CLSA India Private Limited, Edelweiss Financial Services and JM Financial Institutional Securities are book running lead managers to the issue.

10:35 am Stocks in news: Stocks that are buzzing at this hour are Eicher Motors, NBCC, Sicagen India, Wipro.

10:25 am Trending news in September: Edelweiss said the Fed rate hike expectations have been pushed out amidst persistent weakness in US core inflation. This is resulting in weaker Dollar and lending fillip to risk assets – EM bonds, EM FX, EM equities and commodities.

Recently, international food prices have seen a sharp correction. This augurs well for domestic food inflation (strong correlation historically). However, the flip side could be further weakness in nominal agri GDP – which is already at decadal lows. Weak nominal incomes could weigh on debt servicing ability of farmers, it added.

10:15 am Buzzing: Shares of Sicagen India rose 4.4 percent intraday on board approval to buy remaining stake in Danish Steel Cluster.

The company’s board at its meeting held on September 6 has approved the proposed transaction to acquire remaining 40 percent stake in Danish Steel Cluster.

10:06 am Market Check: Equity benchmarks traded off opening highs in morning due to selling pressure in HDFC and Tata Motors. Even index heavyweight Reliance Industries lost some opening gains due to profit booking as the stock rallied more than 7 percent in previous six consecutive sessions.

The 30-share BSE Sensex was up 75.94 points at 31,737.91 and the 50-share NSE Nifty gained 25.55 points at 9,941.75 amid consolidation.

The broader markets continued to outperform benchmarks as the BSE Midcap and Smallcap indices gained 0.7 percent each. About three shares advanced for every share falling on the BSE.

Indian equities continued to get support from positive global cues, especially after political developments out of Washington. President Donald Trump on Wednesday broke with his party to support a package that included a short-term debt ceiling extension. If Congress passes the package, which also includes relief funding for Hurricane Harvey, it would prevent a default on the federal debt.

9:55 am Acquisition: Reliance Industries forayed into new materials business by acquiring assets of Kemrock Industries.

“Reliance participated in an on-line e-bidding process held recently by Allahabad Bank being leader of the consortium of 11 banks to sell / dispose off assets of ‘Kemrock Industries & Exports Limited’ of Vadodara (Gujarat) and has been declared as the winner in the said bid,” it said in its filing.

This participation is a part of Reliance’s efforts to enter the Composites business and establish a leadership position in this large and growing market in India.

Composites are used in a variety of applications and industries such as renewable energy, mass transportation, infrastructure and a host of other industrial products.

The assets will pave the way for Reliance to foray into new materials (Composites and Carbon Fibre) and further strengthen its petrochemicals business portfolio, the company said.

9:45 am Rupee gains: The Indian rupee traded higher by 6 paise at 64.04 per dollar versus previous close of 64.10.

Mohan Shenoi of Kotak Mahindra Bank said the rupee has been trading in a very tight range for the past few weeks which is likely to continue.

USD-INR trading range for the day is 63.90-64.20, according to him.

The dollar lost some ground after edging up against the Japanese yen after getting a boost from trump’s surprise deal with the democrats on extending the debt limit.

9:42 am New LNG import terminal: Petronet LNG will build a liquefied natural gas (LNG) import terminal in Sri Lanka in collaboration with Japanese and Lankan companies.

The Sri Lankan government issued a letter of intent to the Indian government in this regard on September 1.

9:33 am Partnership: HCL Technologies has announced a partnership that includes purchase of select assets with Alpha Insight, a products and solutions company headquartered in London, with expertise in business flow monitoring and operational intelligence.

The IT firm said that the proposed asset purchase consideration shall be up to EUR 3.25 million, including payments subject to certain financial milestones.

9:25 am Buzzing: Shares of Wipro added 1 percent in the early trade as it has bagged a 5-year IT applications management contract.

The company has won a 5-year IT applications management contract from Outokumpu, which is global leader in stainless steel, headquartered in Finland.

The company will provide applications management services for Outokumpu’s SAP landscape along with legacy applications support to cover Outokumpu locations, globally.

9:15 am Market Check: Equity benchmarks rebounded in opening trade Thursday after sell-off in previous session, tracking positive global cues.

The 30-share BSE Sensex was up 110.97 points at 31,772.94 and the 50-share NSE Nifty rose 37.90 points to 9,954.10.

The broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained 0.8 percent each. About five shares advanced for every share falling on the BSE.

Reliance Industries gained nearly 1 percent to hit 52-week high of Rs 832.70 after the stock adjusted for bonus issue in the proportion of one bonus share for every one share held.

Indiabulls Housing Finance surged 2.5 percent again as CLSA raised target price

Eicher Motors, Aurobindo Pharma, Asian Paints, Adani Ports and Dr Reddy’s Labs gained 1 percent each.

Bharat Forge gained 3.4 percent as total class 8 truck orders in the North America rose 50 percent YoY.

Fortis Healthcare, Motherson Sumi, Shriram Transport, NBCC, Muthoot Finance, India Cements, GMR Infrastructure, CESC, HPCL, IOC and Petronet LNG gained up to 5 percent.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.