Market Live: Sensex falls 300 pts, all sectoral indices in red; Coffee Day tanks 10%

12:09 pm Order win: Shares of Gayatri Projects gained 2.8 percent intraday as its JV company has bagged order worth Rs 1,483 crore.

The company has won Rs 1,483 crore irrigation project for the formation of Sri Komaravelli Mallanna Sagar Reservoir with a capacity of 50 TMC in a joint venture with NCC and HES.

The project is expected to provide a major boost to water-intensive crops such as sugarcane and banana, as well as to the associated agro-industries.

11:59 am Buzzing: Indiabulls Ventures share price plunged 16.5 percent intraday following resignation from its two directors.

The broking services provider informed exchanges that Prem Prakash Mirdha and Ajit Kumar Mittal have resigned from their directorship w.e.f. September 23, 2017.

Ajit Kumar Mittal worked with the company as a non-executive director and Prem Prakash Mirdha as non-executive independent director.

In addition, Aishwarya Katoch also resigned as non-executive independent director of the company w.e.f. September 18.

All these directors resigned due to their existing personal commitments, the company said.

11:45 am Stocks in F&O ban: Stocks like Infibeam slipped up to 39 percent in the trade before recouping some of the losses while, India Cements slipped 5 percent, Indo Count Industries dropped 6 percent.

Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95% of the market-wide position limit.

As many as 11 companies were banned for trading on Monday which includes names like BEML, DHFL, DLF, HDIL, Indiabulls Real Estate, Indo Count Industries, India Cements, Infibeam, JSW Energy, Reliance Communications, and Wockhardt.

11:33 am Market Check: Equity benchmarks continued to reel under under pressure as the Sensex was down 322.87 points or 1.01 percent at 31,599.57, and the Nifty down 107.50 points or 1.08 percent at 9,856.90.

11:30 am Buzzing: Despite a positive view on the stock by a global brokerage, shares of KNR Construction fell over 3 percent intraday.

Nomura maintained its buy call on the stock with a target of Rs 287 per share. This is a 35 percent upside against Friday’s closing price.

Further, the global firm said that Rs 884-crore Telangana order win will address order book concerns. It also believes that the management could be able to maintain its guidance of Rs 1,000 crore order wins from the National Highways Authority of India (NHAI).

11:25 am Market Check: Equity benchmarks remained under pressure in morning as the Sensex was down 287 points at 31,635.31 on likely widening in fiscal deficit target.

The 50-share NSE Nifty declined 102 points or 1.02 percent to 9,862.30 as nine out of 50 stocks were in red.

About seven shares declined for every share rising on the BSE.

All sectoral indices traded in red as Nifty Bank, Auto, Metal, Pharma and Realty werre down 1-2 percent.

11:20 am IT Industry growth: Industry body Nasscom is expecting the USD 150-billion Indian IT industry to deliver a strong performance next fiscal on revival in tech spends of the financial sector and demand growth from the US clients.

“There are reasons to be optimistic about the year ahead (2018-19). We continue to see that there are green shoots… The demand side prognosis looks positive,” Nasscom President R Chandrasekhar told PTI.

Elaborating on the positive cues, Chandrasekhar said he expects a revival of financial sector investments (into technology) and a greater hardening of demand in the US. “There is also a lot of re-strategising by the Indian companies as well,” Chandrasekhar pointed out.

11:15 am Forex deal: Tata Capital is likely to sell its forex business to Thomas Cook, reports CNBC-TV18. The deal is likely to occur today.

The share price of Thomas Cook gained mildly after this news but immediately fell over 2 percent due to weak market conditiions.

11:02 am Management outlook: Kitchen appliances firm TTK Prestige is eyeing double-digit growth this festive season and expects it to contribute over 30 percent to the overall sales this fiscal, a top company official said.

“We are expecting substantial growth during this year festival season. We had very good Onam sales, which generally sets the momentum for the festivals. We are expecting a little over 30 percent sales during September to November,” TTK Prestige Managing Director Chandru Kalro told PTI.

He added that with the demonetisation last year, there will be a base effect and the company is expecting a double-digit growth this festive season, without quantifying the anticipated growth.

The company had clocked a turnover of Rs 1,603.64 crore last fiscal.

10:55 am Capacity expansion: Essar Ports today said its Rs 830 crore expansion plan to almost double the iron ore handling capacity to 23 million tonne per annum (MTPA) at Vizag port is nearing completion.

After completion of the project, the loading capacity will increase to 120,000 tonnes per day (TPD) from 70,000 TPD, the company said in a statement.

The facility will be able to berth vessels up to 200,000 DWT, with a draft of 18 metres, on the outer harbour, it said, adding that the upgraded terminal will have a loading rate of 8,000 TPH (tonnes per hour), which will be among the highest for an Indian port.

Essar Ports specialises in development and operations of ports and terminals for handling liquid, dry bulk, break bulk and general cargo and aims to increase its India capacity to 110 MTPA in 2017-18 from 82 MTPA at present.

10:45 am Coffee spills: Weakness in Coffee Day Enterprises, the operator of Café Coffee Day chain, continued as the stock fell over 10.5 percent intraday. Investors turned cautious of the stock on the back of a media report, which hinted to issues relating to undisclosed income.

According to a media report, Income Tax (I-T) Department has detected undisclosed income worth over Rs 650 crore linked to the group after four-day raids.

10:35 am Buzzing: Shares of Cadila Healthcare fell over 3.5 percent intraday as investors turned wary of the stock following a ratings downgrade. A weakness in the overall pharmaceutical space also spilled over to the stock.

Broking firm IIFL downgraded its rating on the stock to reduce from add along with a reduction in the target price to Rs 400 from Rs 460, implying a downside of around 13 percent.

The firm said that Cadila’s stock was already pricing in an upside from big launches. However, its valuations were stretched and at a significant premium compared to its large peers.

The brokerage house also cut FY18/19 EPS estimates by 11%/14% to factor in the Lialda AG launch by the innovator.

10:25 am Market Check: Equity benchmarks fell sharply in morning as the Sensex plunged 312.61 points or 0.98 percent to 31,609.83 on likely increase in fiscal deficit target of the company due to fiscal stimulus.

The 50-share NSE Nifty fell 116 points or 1.16 percent to 9,848.40, dragged by infra, metals and banks stocks.

The BSE Midcap index was up 2.6 percent and Smallcap lost 3.5 percent as about 7.5 shares declined for every share rising on the BSE.

10:15 am Fiscal stimulus: D-Street is abuzz with news of a big stimulus package which could be as big as USD 7.7 billion, Reuters reported last week.

The extra spending was estimated to widen the fiscal deficit for the financial year ending next March to 3.7 percent of GDP from a budgeted target of 3.2 percent.

“Stimulus can potentially increase the central government’s fiscal deficit to 3.5-3.7 percent of GDP in FY18, from the budgeted 3.2 percent target (3.5 percent of GDP achieved in FY17), depending on the size of the stimulus (0.3-0.5 percent of GDP),” Deutsche Bank said in a report.

This would be a setback to the fiscal consolidation momentum that was endured through the past few years. To counter any pessimism on D-Street, the government should clarify that this is a just one-off measure to counter slowdown cause by demonetisation and GST.

The extra money will be spent more on bank recapitalisations, rural jobs programme and rural housing to boost growth in Asia’s third-largest economy.

10:00 am Listing: Shares of Capacit’e Infraprojects had a stellar listing today on investors’ demand.

The stock listed with gains of 59.6 percent on its debut at Rs 399 on the exchanges.

The company had a stellar response to its initial public offering, getting oversubscribed 183.03 times.

9:55 am Reforms: All eyes will be on Prime Minister Narendra Modi as he will address the extended national executive of the Bharatiya Janta Party today. Modi is expected to allay fears of economic slowdown and make some key announcement of welfare schemes.

Expect a big bang announcement from the Prime Minister Narendra Modi on Monday about the power sector-that’s the word from new Power Minister RK Singh, reports CNBC-TV18. The minister also promised to open up the sector further to private players.

9:50 am Pre-opening: Capacit’e Infraprojects share price settled at Rs 399 in pre-opening trade, a whopping premium of 59.6 percent over its issue price of Rs 250.

9:48 am Nifty Midcap breaches 18,000 level in morning as well known names – L&T Finance Holdings, DHFL, Reliance Capital, Bajaj Finserv, Just Dial, Indiabulls Housing, M&M Financial and Bajaj Finance were down 3-5 percent.

9:45 am Buzzing: Shoppers Stop share price rallied 16 percent after the subsidiary of e-commerce company Amazon has purchased 5 percent stake in company at Rs 408 per share.

9:40 am I-T Raid: The Income Tax Department on Sunday concluded raids on premises linked to former Union minister S. M. Krishna’s businessman son-in-law VG Siddhartha, who is also founder-owner of Café Coffee Day, the country’s largest coffee retail chain, reports The Times of India.

A senior public relations official of the I-T department in Bengaluru confirmed that the department has detected over Rs 650 crore of undisclosed income linked to Siddhartha, after four days of raids.

9:35 am FIIs outflow: Foreign institutional investors continued to be sellers in the market since August. They have sold nearly Rs 20,000 crore worth of shares from August 1 to September 22.

9:30 am Market Check: Equity benchmarks extended losses in early trade as the 30-share BSE Sensex was down 197.75 points at 31,724.69,

The 50-share NSE Nifty breached psychological 9,900 level, down 70.25 points at 9,894.15.

The broader markets also fell further as the BSE Midcap and Smallcap indices were down nearly 2 percent each. About four shares declined for every share rising on the BSE.

9:25 am Movers and Shakers: Reliance Industries, HDFC Bank, IOC, Adani Ports, L&T, HDFC, Kotak Mahindra Bank, Axis Bank and Yes Bank were top negative contributors to Sensex’ fall, down 0.7-3 percent.

However, TCS, Power Grid, Bharti Infratel, ICICI Bank, ITC, Vedanta and Infosys outperformed.

9:15 am Market check: Equity benchmarks started off the week on a negative note, with the Sensex falling more than 100 points, weighed by HDFC twins.

The 30-share BSE Sensex was down 156.59 points at 31,765.85 and the 50-share NSE Nifty fell 41.35 points to 9,923.

Nifty Midcap was down 0.8 percent as about 596 shares declined against advancing 423 shares on the BSE.
The Indian rupee opened lower by 5 paise at 64.84 per dollar today versus Friday’s closing value of 64.79 per dollar.