Market Live: Sensex, Nifty see profit booking; US Fed meet eyed

11:00 am Gas stocks in action: Oil and gas companies were on investors’ radar after a global research firm presented a positive view on the sector.

Petronet LNG, GAIL India, Gujarat Gas, Indraprastha Gas and Gujarat State Petronet, among others, gained 2-6 percent intraday.

Morgan Stanley has turned more bullish on gas utilities as it sees a multi-year growth cycle ahead. The growth path was supported by benign gas prices and favourable government policies. This view, it said, bodes well for oil refiners as well.

In this sector, the research firm’s key picks include Reliance Industries, IOC, Petronet LNG, GAIL and BPCL. It also highlighted that OMCs have the balance sheet, scale and an intent to support gas in many ways. In fact, it estimates gas to replace half of fuel oil consumption in the industries by 2021.

On oil and gas companies, the company also sees OMCs as key enablers in raising India’s gas demand by 50 percent by FY22. It added that the OMCs were leading and have the capability to support USD 30 billion gas investment need.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

10:42 am Buzzing: Shares of Swan Energy added 6.3 percent intraday as it has entered in to agreements with Japanese firm.

The company through its fully-owned subsidiaries i.e, Swan LNG and Triumph Offshore have physically entered into agreements with Mitsui OSK Lines, Tokyo, Japan, for its India’s first LNG dedicated FSRU port project at Jafrabad, Gujarat.

“The LNG port project is first of its kind, all weather green field port project being developed by Swan LNG, company said.

10:35 am PSU Banks extend gains: Among sectoral indices, Nifty PSU Bank index fell the most, down nearly 1 percent.

Syndicate Bank, OBC, Andhra Bank, Bank of India, IDBI Bank, PNB, Bank of Baroda, Canara Bank, Allahabad Bank and Union Bank were down 1-2 percent.

10:25 am Market Outlook: Avendus Capital Alternate Strategies said that surging liquidity has been the reason for the current market rally.

“It (liquidity) will continue to push markets higher than we thought, while we can just sit around and look at negatives,” Andrew Holland, CEO, Avendus Capital Alternate Strategies told CNBC-TV18 in an interview.

He also highlighted how the Street chose to look over disappointing macroeconomic data and “…whatever has to be swept under the carpet, has been done”.

Holland also highlighted the extra gush of liquidity in several IPOs.

“Bankers are probably underpricing them. The situation actually reminded him about the scenario in 2007, where companies were getting a huge premium for no reason. “Insurance IPOs are priced high and it will be difficult for the market to absorb them,” he told the channel.

10:15 am Market Check: Equity benchmarks saw some selling pressure amid consolidation in morning trade as investors looked for cues from Federal Reserve’s monetary policy meeting that will begin tonight.

The 30-share BSE Sensex was down 24.75 points at 32,399.01 and the 50-share NSE Nifty fell 10.15 points to 10,142.95.

The broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained 0.3 percent each on positive breadth. About 1,066 shares advanced against 915 declining shares on the BSE.

10:11 am IPO: Footwear retailer Khadim India has received capital markets regulator Sebi’s approval to raise an estimated Rs 550-650 crore through an initial public offering.

The company had approached Securities and Exchange Board of India (Sebi) with its draft red herring prospectus in July and received its ‘observations’ on September 13, which is necessary for any company to launch their public offer.

Khadim India’s initial public offer (IPO) comprises fresh issue of equity shares aggregating up to Rs 50 crore and an offer for sale of up to 6,574,093 equity shares by the existing shareholders.

Net proceeds from the issue would be utilised towards payment of loans and for general corporate purposes.

10:05 am Rupee trade: The rupee dropped marginally against the US currency to 64.14 in early trade today on some dollar demand from importers and banks.

The rupee opened lower by 5 paise at 64.18 against the last close of 64.13 at the interbank foreign exchange. It moved in a range of 64.18 to 64.13 in early trade before quoting at 64.14, down by 1 paise, at 0930hrs.

Forex dealers said dollar demand from banks and importers weighed on the rupee.

A weakness in the US dollar against some currencies in the global market and a higher opening of the domestic equity market, however, limited the fall.

9:55 am Buzzing: Shares of Biocon rose 3.6 percent intraday on zero observation from USFDA for Visakhapatnam facility.

United States Food & Drug Administration (USFDA) has completed the audit of active pharmaceutical ingredients facility at Visakhapatnam, Andhra Pradesh without any observations, and so not issued form 483.
The USFDA has inspected the said facility from September 11 to 15.

The company had acquired the above unit from Acacia Lifesciences in October 2015.

The successful audit of this facility reflects our strong commitment to cGMP compliance at our manufacturing facilities, company spokesperson said.

9:45 am Market Outlook: Going forward, Aditya Agarwal of Way2Wealth Brokers expects Nifty to rally towards 10,200-10,250.

Any weekly closing above 10,200 will confirm that the current trend is still up, he said.

In the short term, 10,200 level will act as resistance for Nifty, he added.

“We saw Call writing in 10,200 and 10,300 strike options. However, on the positive side, put writing was seen at 10,100-10,000 which will prove as a strong support zone for indices,” he said.

Overall, the outlook for broader indices remains bullish and the current technical setup suggests buy on dips, he feels.

9:35 am USFDA approval: Shares of Glenmark Pharma gained 2 percent intraday on the back of final approval for Desonide Ointment from USFDA.

Glenmark Pharmaceuticals Inc, USA has been granted final approval by the United States Food & Drug Administration (USFDA) for Desonide Ointment, 0.05%, the generic version of Desonide Ointment, 0.05%, of Perrigo New York Inc.

The Desonide Ointment has achieved annual sales of approximately USD 23.4 million, as per IMS Health sales data for the 12 month period ending July 2017.

9:25 am FII View: Mahesh Nandurkar of CLSA said meetings with investors at the CLSA Investors’ Forum revealed that India has not remained as much of an overweight market today as it used to be 12-24 months ago.

Foreign flows have been weak and continued strong domestic flows have helped market performance and valuations, which he believes will continue to be the case in the visible future.

He said a process of slow normalisation post GST is now underway and should partially help the September quarter results.

Low base should help YoY performance in the subsequent three quarters, he added.

Nandurkar said the research house remained optimistic that housing-led capex recovery is around the corner.

9:15 am Market Check: The NSE Nifty turned flat after opening at fresh record high on Tuesday as investors looked for cues from two-day monetary policy meeting of Federal Reserve that will begin tonight.

The 30-share BSE Sensex was up 8.83 points at 32,432.59 and the 50-share NSE Nifty gained 6.20 points at 10,159.30.

Gas stocks like GAIL, Gujarat Gas and Indraprastha Gas gained 2-4 percent after Morgan Stanley said gas demand is on secular growth path supported by benign gas prices and favourable government policies.

Biocon, Bharat Gears, Divis Labs, Dixon Technologies, Autolite, TVS Electronics, Graphite India, HEG and ADF Foods rallied up to 10 percent.
InterGlobe Aviation, Bharat Road Network and Mirc Electronics fell up to 6 percent.