Market Live: Sensex mildly lower, Nifty opens below 10,400; NTPC, Power Grid fall

10:26 am Market Check: Equity benchmarks continued to consolidate ahead of expiry of November derivative contracts on Thursday.

The 30-share BSE Sensex was down 23.97 points at 33,700.47 and the 50-share NSE Nifty fell 4 points to 10,395.50.

The broader markets continued to outperform benchmarks as the BSE Midcap index was up 0.3 percent and Smallcap gained 0.5 percent. About two shares advanced for every share falling on the BSE.

10:16 am Realty stocks in focus: The stocks in focus this morning will be the realty pack – a media report suggests that there might be a tax on the unsold inventory held by developers.

In an interview to CNBC-TV18, Gulam Zia, Executive Director of Knight Frank said real estate industry is in a doldrums situation with so many changes; regulatory and goods and services tax (GST) etc. It was weathering those blows and this is supposed to be the next one.

He further said that unsold inventory was always there, now we just have more clarity on the data.

Talking about real estate locality in general, he said the worst affected market is National Capital Region (NCR) and on the other hand Bengaluru developers have always been doing well.

According to him, Mumbai real estate prices should correct further.

10:05 am Market Outlook: “We expect the market to consolidate from hereon and may see some minor upside,” Harsha Upadhyaya, CIO-Equity, Kotak Mutual Fund said in an interview to CNBC-TV18.

He feels the market is resilient now. September quarter earnings were largely in line and better-than-expected.

The Nifty 50 has rallied 26 percent in 2017 so far, which indicated that the market already discounted earnings, GST, PSU banks recapitalisation and infrastructure reforms.

On valuation front, midcap is relatively higher compared to largescaps. So pick quality stocks, he advised.

The mutual fund house is focussed on largecap stocks in multi-cap segment.

Here are the top headlines at 10 am from Moneycontrol News’ Anchal Pathak

9:55 am Buzzing: Credit Suisse has initiated coverage with outperform call on Eris Lifesciences and target price of Rs 770 per share. The stock was up 4 percent.

The research house believes existing business should grow at 15 percent CAGR and entry into new areas should boost growth.

According to Credit Suisse, turnaround of recent four-loss making acquisitions could rerate the stock.

“Estimates of 24 percent profit CAGR over FY17-20 is the highest in our coverage,” it said.

9:42 am Listing: ICICI Prudential Mutual Fund (Bharat 22 ETF) listed at Rs 36.30 on the BSE, a premium of nearly 1 percent over issue price of Rs 35.97 per share.

9:38 am Fiscal deficit: The success in divestments and encouraging goods and services tax collections will help government reduce pressure on the fiscal math, says a report.

“Disinvestment drive and GST rollout will reduce pressure on fiscal arithmetic,” domestic rating agency India Ratings said in a report today.

It can be noted that government has reiterated its commitment to narrow down the fiscal deficit to 3.2 per cent for fiscal 2018.

Front-loading of expenditure, where government has exhausted 96 per cent of the deficit by August, and also a slowdown in growth which led it to even mull a stimulus, had put question marks over whether it government will be able to meet the fiscal deficit target or not.

The report said successful subscription of Bharat 22 exchange traded fund launched last week has helped government move closer to its FY18 divestment target of Rs 72,500 crore and it has raised Rs 52,300 crore by the end of November.

9:26 am FII View: The economy is likely to clip at 8 percent next fiscal as the massive bank recapitalisation will help revive the long-stalled credit demand and private investments, says a brokerage report.

According to Wall Street brokerage Goldman Sachs, the Rs 2.11-trillion bank recapitalisation announced by government last month and a likely recovery in earnings are also likely to drive up the stock markets and has set the Nifty target of 11,600 by next December.

“We project above-consensus real GDP growth of 8 percent in 2018-19, while we see a growth of 6.4 percent for 2017-18, as the negative impact from shocks (demonetisation and GST implementation) this year fade and the bank recap programme unlocks credit and private investment growth,” it said today.

It said CPI inflation is likely to rise above the mid-point of RBI target to 5.3 percent in FY19 due to a pick-up in food and commodity prices, and so it expects RBI to hike policy rates by 75 basis points by mid-2019.

9:20 am Buzzing: Shares of Glenmark Pharma tumbled 3 percent in the early trade on the back of observations issued by USFDA.

The US Food and Drug Administration (USFDA) has issued 7 observations to company’s Baddi units as the company has failed to thoroughly review any unexplained discrepancy and also failure of a batch.

The observations includes, lack of written procedures for production & process controls and complaint records are deficient.

USFDA also mentioned that the records have not maintained so data can be reviewed annually to evaluate quality standards.

It also includes responsibilities & procedures applicable to quality control unit not fully followed, appropriate controls not exercised over computers/related systems and lack of employee training.

The USFDA had inspected Baddi unit from November 6-11.

The Baddi unit manufactures finished dosages and contributing less than 10 percent of total Glenmark’s US sales.

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9:15 am Market Check: Equity benchmarks opened mildly lower on Tuesday, weighed by profit booking. The market rallied for previous eight consecutive sessions.

The 30-share BSE Sensex was down 32.62 points at 33,691.82 and the 50-share NSE Nifty fell 11 points to 10,388.50.

Power Grid, NTPC, ITC, IOC, Bharti Airtel, ICICI Bank, Tata Motors, Tech Mahindra, Bharti Infratel and Infosys were early losers.

Tata Power, HUL, Cipla, IndusInd Bank, HDFC Bank, Ambuja Cements and UltraTech Cement were early gainers

Reliance Communications plunged 8 percent. Reliance Capital, Reliance Naval and Reliance Infrastructure fall 1 percent each.

IGL, Gujarat Gas, Mahanagar Gas, Rallis India, IDBI Bank and Eris Life gained 1-5 percent.
PNB Housing Finance and Glenmark Pharma fell 3 percent.