Market Live: Sensex rebounds 100 pts, Nifty reclaims 10,150; Bharti Infra up 2%

10:15 am FII View: India is the most overweight markets for most foreign institutional investors (FIIs), Gautam Chhaochharia, Head of India Research at UBS Securities said in an interview with CNBC-TV18.

On earnings, he added, “Our top-down forecast for Nifty – fiscal year 2018 is 7 percent, fiscal year 2019 is 13 percent. Markets have ignored negative earnings momentum possibly because of the strong liquidity environment we are in.”

According to him, public sector undertaking (PSU) bank sector is attractively valued but one has to be selective on which stocks to buy there.

10:05 am New Listing: Shares of 5paisa Capital listed at Rs 380, a discount of 5 percent, on the exchanges today.
Here are the top headlines at 10 am from Moneycontrol News’ Anchal Pathak

9:55 am Pre-opening: 5paisa Capital, the subsidiary of IIFL Holdings, has settled at Rs 400 per share in pre-opening trade on NSE.

9:53 am Rupee trade: The rupee came under pressure against the dollar today slipping 11 paise to 65.32 after upbeat economic data bolstered prospects of a US interest rate increase next month and beyond.

A higher interest regime pulls investors looking for more returns away from emerging markets assets that are considered risky.

The American unit strengthened overseas, too.

Forex dealers said increased demand for the US currency from importers and the greenback’s gains against other currencies overseas put pressure on the rupee.

Yesterday, the rupee had rebounded 21 paise to close at 65.21 against the US currency, ending its two-day slide on fresh bouts of dollar selling even as trade deficit widened alarmingly to a three-year high.

9:43 am Buzzing: Reliance Nippon Life fell below its issue price of Rs 252 per share, following correction in other Anil Dhirubhai Ambani Group stocks.

At 09:43 hours IST, the stock price was quoting at Rs 240, down Rs 14.20, or 5.59 percent on the BSE.

9:32 am CLSA on J Kumar: CLSA has retained its buy call on J Kumar Infra with target at Rs 355 per share despite company’s flat second quarter earnings.

Margin expansion in Q2 was led by better mix & cost control in materials.

The research house believes clearances for JNPT & Metro execution will lead to 23 percent revenue CAGR over FY17-20 and forecasts 26 percent EPS CAGR over FY17-20.

9:25 am Buzzing: Jubilant Foodworks gained over a percent and hit a fresh 52-week high. While retaining a buy call on Jubilant Foodworks with a target price of Rs 1,775 per share, Deutsche Bank said market checks indicated Dominoes has implemented price hike of average 6 percent.

Price hike will mitigate potential margin headwind due to impact of stranded taxes, it added.

The research house said Jubilant Foodworks remains its top pick in consumer discretionary.

Revenue growth and higher cost savings in second half of FY18 may drive consensus earnings upgrades, it feels.

9:20 am Moody’s on Bharti Airtel: Credit rating agency Moody’s investor service maintained its negative outlook on Bharti Airtel despite sale of its 4.49% stake in Bharti Infatel for Rs 3,325 crore to investors and fund managers. The agency expects Bharti Airtel’s margins to remain under pressure over next one to two years because of increase in tariff competition besides reduction in lower mobile call connection charges to six paise from 14 paise levied earlier.

In longer term, Moody’s expect Bharti to benefit from consolidation and pricing stabilisation in the telecom market. The international credit rating agency said that even if all the proceeds from the deal is put for debt reduction its cash flow to debt ratio will improve only marginally. Bharti Airtel’s net debt was Rs 91,480 crore at the end of September 2017.

9:15 am Market Opening: Equity benchmarks rebounded on Thursday after seeing a fall for previous three consecutive sessions, backed by beaten down stocks. Asian markets barring China also traded higher.

The 30-sahre BSE Sensex was up 96.78 points at 32,857.22 and the 50-share NSE Nifty gained 29 points at 10,147.

Bharti Infratel rallied 2 percent after 8 percent fall in previous two straight sessions.

Aurobindo Pharma, Tata Motors, Ambuja Cements, Tata Steel, Reliance Industries and SBI were early gainers while Coal India, HUL, HCL Technologies and GAIL were under pressure.

Nifty Midcap was up 0.4 percent.

Jubilant Foodworks was up 1.5 percent as brokerage houses remained positive on the stock.

Anil Dhirubhai Ambani Group stocks like Reliance Communications, Reliance Power and Reliance Capital extended losses, falling 2-4 percent but Reliance Nippon gained 3 percent.

Religare Enterprises added another 10 percent today, on top of 10 percent rally seen in previous session.
Westlife Development, TD Power, New India Assurance, Speciality Restaurants, Jain Irrigation, Manappuram Finance, HDIL, Just Dial, MMTC and Hindustan Copper gained 1-5 percent.