Market Live: Sensex off opening high, Nifty Bank turns flat; RIL, auto stocks lead

10:26 am Expectations for RBI policy: Global brokerage house JP Morgan feels the RBI is likely to adopt “wait and watch” strategy due to increased macroeconomic and inflation uncertainty.

Markets are likely to focus on the tone and guidance of policy, and how RBI looks at the various moving parts, it said.

Edelweiss expects RBI to leave rates unchanged while maintaining a dovish bias. “We continue to expect another 25 basis points rate cut in FY18, although more may be warranted, it said.

10:18 am Auto sales: The country’s largest two-wheeler maker Hero MotoCorp has sold over a million units in the festive season so far, a senior company executive said.

The company has achieved the milestone with still around three weeks remaining in the current festive season.

“The customer response has been so massive that we have already crossed a million units in retail sales in the ongoing festival season, with a double-digit growth over the previous year,” the official told PTI.

10:10 am Adani’s Australia project faces risk: Adani group’s Abbot Point Coal Terminal in Australia faces the risk of becoming a stranded asset if its proposed Carmichael mine fails to get 1 billion Australian dollar (AUD) subsidy, according to a report by US- based institute IEEFA.

The Institute for Energy Economics and Financial Analysis (IEEFA), which conducts research and analyses on financial and economic issues related to energy and environment, has found that Adani’s Abbot Point Coal Terminal (AAPCT) is excessively leveraged and promises negative shareholders equity. The Abbot Point terminal, IEEFA said, also “runs the risk of becoming a stranded asset if Adani’s proposed Carmichael mine does not get the AUD 1 billion Australian taxpayer subsidy it seeks.”

The IEEFA further said the analysis finds more broadly that “Adani’s entire AUD 3.5 billion debt-funded investment in Australia is at grave risk.”

Currently operating at just over 50 percent capacity, the AAPCT needs the Carmichael mine to fill the gap created as its current take-or-pay contracts progressively expire.

10:00 am Listing: SBI Life Insurance Company has listed at Rs 735 per share on the National Stock Exchange, up 5 percent over issue price.

9:55 am DLF in focus: Singapore’s sovereign wealth fund GIC has approached fair trade regulator CCI seeking approval for its deal to acquire stakes in DLF rental arm for Rs 8,900 crore and form a joint venture with the realty firm.

GIC had in late August agreed to buy 33.34 percent stake in DLF’s rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 8,900 crore. GIC will buy shares in DCCDL from DLF promoters.

According to sources, GIC has approached the Competition Commission of India (CCI) to get approval for this deal.

The deal is expected to be approved by next month, they added.

9:50 am Pre-opening: SBI Life Insurance Company share price settled at Rs 735 in pre-opening trade, up 5 percent over issue price of Rs 700 on the National Stock Exchange.

9:45 am Market Check: Equity benchmarks came off opening high in morning trade due to selling in index heavyweights HDFC Bank and HDFC.

The 30-share BSE Sensex was up 181.76 points at 31465.48 and the 50-share NSE Nifty rose 61.50 points to 9,850.10.

The market breadth remained strong as about three shares advanced for every share falling on the BSE.

Reliance Industries gained 2 percent while Tata Motors surged 4.5 percent.

9:40 am Drug launch: Dr Reddy’s Laboratories has launched Sevelamer Carbonate tablets (generic version of Renvela) in the US market.

“This is the company’s eighth overall and fourth limited-competition launch this fiscal year,” Alok Sonig, Executive Vice President and Head of North America Generics business said.

For the last 12 months ending in July 2017, the drug had US sales of approximately USD 1.88 billion, according to IMS Health.

Sevelamer is used to lower high blood phosphorus (phosphate) levels in patients.

9:35 am SBI Life to debut: SBI Life Insurance Company, which recently completed its initial share sale offer, will make its stock market debut today.

The initial public offer (IPO) of Rs 8,400 crore was oversubscribed 3.58 times on September 20-22. The portion meant for qualified institutional buyers (QIBs) was oversubscribed 12.56 times while that of non- institutional investors received 70 per cent subscriptions and retail investors 85 per cent, data available with the NSE showed.

SBI Life is a joint venture between India’s largest lender State Bank of India (SBI) and BNP Paribas Cardif (BNPPC), the insurance holding company of France.

9:30 am Merger called off: The merger of Anil Ambani-owned telecom major Reliance Communications (RCom) with its peer Aircel has been called off and the former will hive off an alternate plan including monetising its spectrum bands and real estate assets.

In a meeting with Board of Directors, RCom reviewed the ongoing strategic transformation programme, and considered alternate plans for debt reduction.

The merger of mobile business of RCom and Aircel lapses with mutual consent Rcom and Aircel Limited (Aircel) had signed binding agreements in September 2016 for the merger of Rcom’s mobile businesses with Aircel, the company said in a filing to stock exchange.

It said, “Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction.

9:25 am Idea-Voda merger: Vodafone India and Idea Cellular merger deal is expected to be completed by March next year, as all regulatory approvals are likely to be obtained by that time, a source privy to the deal said.

“There are only two permissions left in the amalgamation scheme of the Idea and Vodafone. It should be completed by end of the current financial year,” an industry source, who did not wish to be named, told PTI.

Both the companies are before National Company Law Tribunal (NCLT) for seeking its nod after which they will need final approval from the Department of Telecom.

9:20 am Buzzing: Shares of PNC Infratech added nearly 12 percent intraday on the back of contract win worth Rs 2159 crore.

The company has declared the lowest bidder for the project of 145 km long six laning of Chakeri to Allahabad section of NH – 2 from in the state of Uttar Pradesh under NHDP Phase-V.

This is the fifth hybrid annuity project won by the company has having construction period of two and half years and operation period of 15 years, company said.

9:15 am Market Check: Equity benchmarks opened sharply higher, tracking positive global cues and strong auto sales data.

The 30-share BSE Sensex was up 301.40 points or 0.96 percent at 31,585.12 and the 50-share NSE Nifty gained 84 points or 0.86 percent at 9,872.60.

Tata Motors, Eicher Motors, Hero Motocorp, Dr Reddy’s Labs, Bank of Baroda and BPCL rallied 1-6 percent.

Nifty Midcap rallied 1 percent on strong breadth. About five shares advanced for every share falling on the NSE.

Jaiprakash Associates, Jaypee Infratech, Peninsula Land, PNC Infratech, L&T Finance, TVS Motor, VIP Industries, Havells and Manappuram Finance rallied 2-10 percent.

Reliance Communications plunged 6 percent and Tourism Finance fell nearly 3 percent.
Asia markets were mostly higher post US equities closing at record highs overnight.