Sensex, Nifty end lower after consolidation; ICICI Bank, Tata Motors fall
3:30 pm Market Check: Equity benchmarks ended lower after a consolidation on Wednesday as investors looked for cues from Federal Reserve monetary policy meeting.
The 30-share BSE Sensex was down 1.86 points at 32,400.51 and the 50-share NSE Nifty fell 6.40 points to 10,141.15.
ICICI Bank, Tata Motors, IOC, HUL, Hero Motocorp, BPCL and Kotak Mahindra Bank were down 1-2 percent whereas ITC, Reliance Industries, HDFC, L&T and Dr Reddy’s Labs gained.
3:20 pm Listing: Online match-making services provider Matrimony.com is set to make a debut on bourses on September 21.
The issue price is fixed at Rs 985, the higher end of price band.
According to sources, the grey market premium is at around Rs 50 for the stock, hence the listing price may be between Rs 1,000-1,050 per share.
The public issue, which opened for subscription during September 11-13, was oversubscribed 4.41 times.
The company raised Rs 500 crore through the issue that comprised of fresh issue of up to Rs 130 crore and an offer for sale of up to 37.67 lakh equity shares.
The category reserved for qualified institutional buyers (QIBs) was oversubscribed 1.88 times, non institutional investors 41 percent and retail individual investors 17.99 times.
The company had raised nearly Rs 226 crore from anchor investors.
Matrimony.com, which runs online match-making business under BharatMatrimony brand is expected to raise over Rs 500 crore.
Net proceeds from the issue will be utilised towards advertising and business promotion activities, purchase of land for construction of office premises in Chennai, repayment of overdraft facilities and general corporate purposes.
3:10 pm Orderbook: NBCC (India), the government’s construction arm, is planning to launch over 1000 housing ready-to-move-in units this festive season in Delhi-NCR and in Lucknow priced between Rs 15 lakh to a crore.
Mittal informed that the order book of the company stands at around Rs 75,000 crore and is likely to touch Rs 1 lakh crore in a few months.
Around 700 ready-to-move-in units are part of the two projects in Gurgaon. “These will be launched in the next 10 says,” said Dr Anoop Kumar Mittal, CMD, NBCC told Moneycontrol.
NBCC is also planning to launch units in Gomti Nagar, Lucknow.
Most of these units in Gurgaon and Lucknow will be in the price range of Rs 30 lakh to a crore.
3:00 pm Stocks at 52-week highs: Over 120 stocks hit fresh 52-week highs, helping them multiply investors’ wealth. Ashok Leyland, Asian Granito, Bombay Dyeing, Centrum Capital, Hexaware Tech, IGL, Meghmani Organics, Punj Lloyd, Trident and Yes Bank, among others, were among those stocks.
2:50 pm GST Update: Businesses have flocked to the GST Network portal on the last day of filing initial returns for August with over 80,000 GSTR-3B being uploaded every hour, its Chairman Ajay Bhushan Pandey said today.
Businesses have time till midnight to file August returns in GSTR-3B form and the network is geared up to take the load, he said.
This is the second month of GSTR-3B filing after the Goods and Services Tax (GST) was rolled out from July 1.
2:30 pm PE Investments: Private equity investment activity in the country improved in August following big- ticket transactions that drove the overall deal tally to as high as USD 13.8 billion so far this year, says a report.
According to assurance, tax and advisory firm Grant Thornton, there were 47 private equity transactions worth USD 4.96 billion in August, registering a significant jump over last year (August 2016) when deal tally stood at just USD 1 billion.
2:15 pm Toll collection rights: MEP Infrastructure today said it
has won a contract for toll collection at the border points entering Delhi from specified commercial vehicles for a period of five years.
“MEP Infrastructure Developers has been given the Letter of Award from office of the Director Local Bodies (Toll Tax Department) for Toll & Environment Compensation charges (ECC) collection at the border points entering Delhi from specified commercial vehicles,” it said in a statement.
As per the contract, the company has been engaged as the contractor for South Delhi Municipal Corporation (SDMC) for toll and ECC collection for a period of five years for Rs 1,206 crore per annum payable to SDMC on a weekly basis.
2:00 pm Acquisition: Tractor major Mahindra and Mahindra has signed to share purchase agreements for acquiring 100 percent share capital of Erkunt Traktor Sanayii AS and at least 80 percent share capital of Erkunt Sanayi AS.
The second agreement included approximately 35 percent share capital of Erkunt Sanayi AS, which is held by Erkunt Traktor Sanayii AS.
1:54 pm GST Council meet: The all powerful GST Council headed by Finance Minister Arun Jaitley will iron out various issues faced by the industry on October 6 in a video conference call in New Delhi, a senior government official told Moneycontrol.
The Council is likely to discuss reducing rates of close to 60 items in the next meeting on October 6. The council was earlier to meet on October 24.
“Around 100 items was there in the Council meeting’s agenda in the last meeting on September 9. Only 40 items could be taken up for discussion as we were running out of time. Remaining items will be considered in the next meeting on October 6,” another government official said.
“Most of the remaining items are demands of individual states now,” the official said.
The Council, which met in Hyderabad, extended the deadline for filing the first set of returns, a move that will benefit millions of traders who have been struggling to upload invoices in the new tax system’s portal.
1:40 pm Top gainer on Nifty: Dr Reddy’s Labs rallied nearly 4 percent after the US FDA issued 3 observations to company’s Mirfield plant in UK.
The plant was inspected by US Food and Drug Administration during September 11-15.
These observations are related to procedures that are not established or followed by the company in its plant.
The one observation was that cleaning procedures or clean status is not established at plant and the second was that manually managed materials in warehouse are not separated during storage.
1:30 pm Market Check: Equity benchmarks fell marginally amid consolidation in afternoon, dragged by private banks, auto and technology stocks. However, index heavyweights Reliance Industries, ITC and L&T capped losses.
The 30-share BSE Sensex was down 15.63 points at 32,386.74 and the 50-share NSE Nifty fell 11.75 points to 10,135.80.
The broader markets traded flat but continued to outperform benchmarks as breadth remained in favour of advances. About 1,214 shares advanced against 1,162 declining shares on the BSE.
Investors looked for the outcome of two-day Federal Reserve monetary policy meeting tonight.
1:24 pm Turnaround in steel sector good for PSU banks: ICICIdirect said Basic metals form 14.7 percent of industry loans, with an exposure of Rs 4,21,555 crore. It has seen the highest NPAs with stressed loans at 45 percent of the exposure.
The loan book of the iron & steel sector within metals is at Rs 3,19,000 crore. The same has seen a significant improvement with a surge in steel prices to the tune of 15-20 percent in the last six months. Globally, on the back of stricter environment norms, over a medium term horizon, capacity cuts are being planned in steel, aluminum (especially in China, albeit at a gradual pace), which is likely to support global prices. The steps taken by the government (in terms of levy of anti-dumping duty) are also likely to cushion margins of domestic steel players.
Accordingly, companies referred under to NCLT like Monnet Ispat, Bhushan Steel, Essar Steel, etc, are seeing buying interest from both domestic and international players as per media sources. These accounts can turn standard if the resolution is done successfully.
Banks have made huge provisions in these stressed accounts.
ICICIdirect believes a turnaround in the steel sector may entail lower haircuts for banks. Provisions held may see some write-back if the deals go through, supporting earnings for banks, particularly PSBs, it said.
1:10 pm Drug approvals: Cadila Healthcare share price gained more than a percent intraday on approval from the US health regulator for drugs that treat a variety of skin conditions and hypertension.
Group company Zydus Cadila has received the final approval from the US Food and Drug Administration to market Desoximetasone ointment USP 0.25 percent and Labetalol Hydrochloride tablets.
Labetalol Hydrochloride tablets, which are available in the strengths of 100 microgram, 200 mg and 300 mg, are used to treat high blood pressure (hypertension).
Desoximetasone ointment drug will be manufactured at group’s topical manufacturing facility in Ahmedabad while Labetalol Hydrochloride tablets will be manufactured at formulations manufacturing facility at Pharma SEZ, Ahmedabad.
1:02 pm Buzzing: Adani Ports gained nearly 2 percent intraday as Credit Suisse maintained an outperform rating on the stock on the back of a healthy outlook for its container business.
It increased the target price to Rs 460 from Rs 360, implying an upside of 27 percent.
A reasonable valuation, strong balance sheet and healthy cash flows are key triggers, it added.
The brokerage also expects coal volumes to be stable without any incremental decline.
12:54 pm Commercial production begins: GNA Axles informed that it has today started the commercial production from its newly installed automated spindle machining line at its Unit-II at Gulabgarh Jattan District Kapurthala Punjab.
12:44 pm Europe trade: European markets opened slightly lower, as investors observed heightened geopolitical tensions over the Korean Peninsula and awaited monetary policy guidance from the Federal Reserve.
The pan-European Stoxx 600 edged down by around 0.21 percent shortly after the opening bell, with almost all sectors and major bourses in negative territory.
The Fed is expected to keep interest rates unchanged after its two-day meeting while many analysts have suggested it could announce plans to begin unwinding its USD 4.5 trillion balance sheet.
12:34 pm Buzzing: ABB India rallied 3.6 percent intraday on a rating upgrade and increase in target price by Axis Capital.
The research house has upgraded its rating on the stock to buy and also raised target price to Rs 1,750 per share (from Rs 1,400) following increase in target multiple.
It has raised its target for PE multiple to 50x from 40x on improved outlook as it feels exports & railways will be next growth drivers for ABB.
Railway product broadening & GE-Alstom tie-up will drive exponential growth, Axis Capital said, adding rise in transmission & distribution and automation capex augured well.
Railway revenues will get a boost from its 4 times rise in railway capex plans for FY15-19, the research house said.
It added the focus on renewables will push its products in transmission & distribution segment.
12:24 pm Citi ups Havells target: Havells India share price gained 1.6 percent intraday after global research firm Citi raised target price on the stock to Rs 525 apiece, from Rs 500 earlier.
Havells has seen improvement in primary demand from second week of August, the brokerage firm said while maintaining neutral call on the stock.
Demand growth was led by re-stocking and onset of festive season.
Lloyd integration has been smooth and has thrown no negative surprises, Citi said.
In May, Havells India had purchased consumer durables business of Lloyd Electric and Engineering on a going concern basis.
12:10 pm Order win: Gujarat Industries Power has emerged as one of the successful bidders for the 75 MW solar power project in the e-reverse auction conducted by Gujarat Urja Vikas Nigam (GUVNL) on September 19 for 500 MW solar power projects, in Gujarat.
The stock gained nearly 2 percent.
12:01 pm Buzzing: Reliance Industries hit a fresh record of Rs 872.10, up as much as 3.8 percent after CLSA reiterated its buy call on the stock and raised target price to Rs 1,050 (from Rs 990 earlier), citing IUC cut.
“We raised FY18-20 consolidated EPS forecast by 8 percent after Interconnect usage charge cut to 6 paise from 14 paise by TRAI,” the research house said.
The telecom regulator announced 60 percent IUC cut from October 1 and a complete removal from 2020.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
11:55 am ONGC’s discovery: The latest discovery of India’s largest oil explorer, Oil and Natural Gas Corp, to the west of its Mumbai High offshore fields is estimated to hold in-place reserves of about 20MT, reports Reuters.
The Mumbai High field annually produces oil and natural gas of about 9-10MT of oil equivalent. The company discovered hydrocarbon reserves west of Mumbai High at well WO 24-3 in July.
11:47 am Tata Group stocks in focus: Promoter Tata Sons has increased its stake in Tata Motors via open market transactions on Tuesday.
Tata Sons bought 3,87,67,541 shares (1.34 percent) of Tata Motors at Rs 421.44 on the BSE.
It also bought 1,04,80,000 shares of Tata Chemicals at Rs 642.55 and 4,31,75,140 shares of Tata Global Beverage at Rs 213.35 on the BSE.
Tata Motors and Tata Chemicals fell more than 1.5 percent, followed by Tata Global with 0.3 percent loss on profit booking after yesterday’s rally.
11:45 am Buzzing: Shares of Strides Shasun added more than 3 percent intraday on the back of USFDA approval for Omega-3-Acid Ethyl Esters capsules.
Omega-3-Acid Ethyl Esters capsules is a generic version of Lovaza.
As per IMS data, the US market for the generic Lovaza is approximately USD 300 million per annum, with five generic players including Par Pharmaceuticals, an Endo International Company.
The company has partnered with Par to market the product in the United States.
11:40 am Rupee trade: The rupee fell by 3 paise to 64.36 against the dollar in morning trade after positive opening.
Traders await the conclusion of the Federal Reserve’s policy meeting.
11:30 am Sudden spike in stocks: Marksans Pharma and Intellect Design rallied up to 10 percent.
11:20 am Japan exports: Booming shipments of cars and electronics in August drove up Japan’s exports at the fastest pace in nearly four years, further evidence that overseas demand is strong enough to support healthy economic growth.
The 18.1 percent annual increase in exports was the fastest since November 2013 and handily beat the median estimate for a 14.7 percent annual rise seen in a Reuters poll.
August’s export result was well up on July’s 13.4 percent, and marked a ninth straight month of expansion.
11:10 am Asia firms’ sentiment: Business confidence among Asian companies fell for the first time in three quarters in July-September as escalating geo-political tensions outweighed an improved performance by most economies in the region, a Thomson Reuters/INSEAD survey showed.
The Thomson Reuters/INSEAD Asian Business Sentiment Index,, representing the six-month outlook of 86 firms, slipped to 69 for the September quarter from 74 three months before. A reading above 50 indicates a positive outlook.
While China, India and South Korea led the fall in sentiment in the third quarter, reflecting regional tensions and sluggish growth, most Southeast Asian economies and Australia put in a stable performance, limiting the downside in the overall index.
10:55 am USFDA approval: Glenmark Pharmaceuticals Inc, USA (Glenmark) has been granted final approval by the United States Food & Drug Administration (US FDA) for Nitroglycerin Sublingual tablets USP, 0.3 mg, 0.4 mg, and 0.6 mg.
Nitroglycerin Sublingual is the generic version of Nitrostat Sublingual tablets of Pfizer Inc.
According to IMS Health sales data for the 12 month period ending July 2017, the Nitrostat Sublingual tablets achieved annual sales of approximately USD 112.7 million.
Glenmark’s current portfolio consists of 125 products authorized for distribution in the US marketplace and 61 ANDA’s pending approval with the US FDA.
10:39 am Divis Labs jumps 4%: Divi’s Laboratories said its Unit-2 has been inspected by US-FDA from September 11 to September 19, 2017.
This inspection was for full cGMP and verification of all Corrective Actions proposed against the previous Inspection observations. Divi’s Laboratories Limited announces that all previous observations have been confirmed as completed and resolved, it added.
On completion of this inspection, Divi’s Laboratories Limited has received a Form 483 citing six observations which are procedural and the company will be responding to these within the stipulated time, it said.
10:30 am Market Check: Equity benchmarks turned volatile in morning as investors awaited the outcome of two-day Federal Reserve’s monetary policy meeting due tonight.
The rate hike is not expected by economists but the commentary on unwinding of USD 4.5 trillion balance sheet will be key to watch out for.
The 30-share BSE Sensex was up 28.14 points at 32,430.51 and the 50-share NSE Nifty fell 1 point to 10,146.55.
Reliance Industries, Dr Reddy’s Labs, L&T, SBI, ITC and Yes Bank gained 0.7-2 percent while Tata Motors, Hero Motocorp, Coal India, Sun Pharma, Cipla, BPCL and Tata Motors declined 1-2.5 percent.
10:15 am Tractor deal: Mahindra & Mahindra (M&M) is set to buy a big tractor company in Turkey, reports CNBC-TV18.
The company has zeroed in on one of Turkey’s top five tractor makers, with the acquisition in ‘final stages’. An announcement to this effect is expected shortly.
This would be M&M’s second tractor acquisition in Turkey this year. In January 2017, it had acquired Turkish company Hisarlar. Turkey is Europe’s largest tractor market and globally commands a 3% market share in the agri-machinery industry.
The Turkish acquisition is part of M&M’s plan to double its global revenue to USD 5 billion by 2019. It is targeting 50 percent revenues from global markets by 2019.
10:02 am Transport sector in focus: Calling for reforms in public transport, Union minister Nitin Gadkari today asked transport ministers of states to submit suggestions on tax and permit issues, a government official has said.
Chairing a meeting of the Transport Development Council (TDC), the apex body that advises the Centre on matters relating to the sector, in Vadodara, the road transport and highways minister underscored the point that there is need for reforms in the sector.
“People are willing to accept change,” said Gadkari, urging the state ministers to work in this direction and give suggestions on taxes and permits.
Advocating removal of checkposts, he asked the states to adopt digital payment solutions.
9:59 am Order win: L&T Hydrocarbon has bagged order worth Rs 1,700 in Kuwait and the company will complete this order in third quarter of 2,020.
9:55 am Tata Steel up 2%: Tata Steel and thyssenkrupp AG have signed a memorandum of understanding to create a leading European steel enterprise by combining the flat steel businesses of the two companies in Europe and the steel mill services of the thyssenkrupp group.
9:45 am IPO opens: The USD 1.3 billion initial public offering of SBI Life has opened for subscription today.
SBI Life Insurance Company has garnered nearly 27 percent of IPO amount from anchor investors on Tuesday, the day before issue opening.
The country’s largest private life insurance company raised Rs 2,226 crore from 69 anchor investors, which include big PE firms and mutual fund houses like BlackRock Global, Axis Mutual Fund, HSBC Global, Monetary Authority of Singapore, Kuwait Investment Authority, Baron Emerging Markets Mauritius etc
The insurer raised this money at higher end of price band of Rs 685-700 per share.
India’s largest private life insurer will close its public issue on September 22.
The 12-crore shares IPO of SBI Life comprises of an offer for sale of up to 8 crore equity shares by country’s largest lender State Bank of India and up to 4 crore shares by BNP Paribas Cardif SA.
9:34 am Buzzing: Hyderabad-based Bodhtree Consulting was up 5 percent after it bagged Rs 100 crore order from the Medical Council of India to cover 550 medical colleges in the country under the Digital Mission Mode Project II.
9:25 am Market Outlook: “The unfaltering rise of stock markets over the past six months has made many of us a skeptical optimist love it or hate it, but you can’t ignore it,” Kashyap Pujara of Axis Capital said.
While earnings growth concerns continue and achieving GDP growth projection seems challenging at this point, expectations of post-GST recovery and rate cuts will only strengthen the domestic wall of liquidity/equity flows, he added.
According to him, the Street is expecting aggregate 16 percent earnings growth for 350 companies in FY18 but excluding outliers, growth is just 8-9 percent.
However, FY19 expectations broadly remain unchanged, he feels.
This will at best keep the market sideways till earnings catch up. Thus now may well be the right time for bottom-up investing, Pujara said.
9:15 am Market Check: Equity benchmarks opened mildly higher on Wednesday, led by support from index heavyweight Reliance Industries.
The 30-share BSE Sensex was up 63.74 points at 32,466.11 and the 50-share NSE Nifty gained 11.90 points at 10,159.45.
Telecom stocks – Bharti Airtel, Idea Cellular and Reliance Communications fell 3-6 percent after telecom regulator TRAI slashed mobile call connection charge to 6 paise per minute from 14 paise currently, effective October 1.
Tata Motors, ICICI Bank, BPCL, Cipla, Coal India, Ambuja Cements, NTPC and Wipro were also under pressure in early trade.
Reliance Industries rallied 4 percent, followed by L&T, ONGC, HDFC Bank, ITC, Tata Power and Yes Bank.
Nifty Midcap was up 0.4 percent, outperforming benchmarks.
JK Tyre, Apollo Tyres, Ceat, Divis Labs, Kamat Hotels, Adani Transmission, Bombay Dyeing, HEG, Graphite India, Goa Carbon, Rain Industries, Shreyas Shipping and Cadila Healthcare gained up to 10 pecent.
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