Market Wrap
Closing Bell
Indian equity benchmarks snapped a four-day winning streak, in line with their global peers, after North Korea fired a missile over Japan, which turned investors risk averse.
The S&P BSE Sensex fell 1.14 percent to 31,388 and the NSE Nifty 50 Index fell 1.18 percent to 9,796. The losses in today's session were broad-based as the S&P BSE MidCap Index fell 0.85 percent and the S&P BSE SmallCap index slumped 1 percent.
All the 19 sector gauges compiled by the BSE Ltd declined, led by the S&P BSE Telecom Index’s 1.87 percent slump, the most in over a month.
Shares Gaining On Heavy Volume
Maharashtra Seamless: The steel pipe maker rose as much as 1.66 percent to Rs 430.60. Trading volume was 11.2 times the 20-day average.
Gabriel India: The auto component maker fell as much as 12.14 percent, the most in over nine months, to Rs 158.85. Trading volume was 5.4 times the 20-day average.
RBI Sends Second List Of Cases To Banks For Insolvency Action
The Reserve Bank of India (RBI) has sent a second list of cases to banks for insolvency action.
Swan Energy Gains After Subsidiary Executes Ship Building Contract
Shares of the Mumbai-based company jumped as much as 4.39 percent to Rs 148.50 after its subsidiary Triumph Offshore Private Limited executed ship building contract for construction of LNG floating, storage and re-gasification unit with Hyundai Heavy Industries Company.
Telecom Stocks Among Worst Performers
The S&P BSE Telecom index was the worst sectoral gauge on the BSE. The index fell as much as 1.75 percent, the most since August 4, 2017.
HCL Infosystems Surges As Board Approves Rs 500 Crore Rights Issue
Shares of the Noida-based company rose as much as 7.14 percent, the most since August 22, to Rs 50.25 after its board of directors approved fund raising via rights issue.
The IT hardware company's board approved raising Rs 500 crore by way of rights issue of shares to its existing shareholders.
European Shares Decline
Reliance Infra Gains On Talks Of Mumbai Electricity Unit Sale
Shares of the Anil Ambani-led company jumped as much as 7.65 percent, the most in over nine months, to Rs 520.80.
The company was said to be in talks with renewables company Greenko to sell its Mumbai electricity business for an enterprise of Rs 10,000-13,000 crore, according to a report by Economic Times.
NTPC Falls As Government Sells Stake Via OFS
Shares of the state-run power producer fell as much as 4.21 percent, the most in over nine months, to Rs 166.
The government kick started a two-day offer for sale (OFS) with an aim to raise Rs 13,800 crore.
The NTPC sale will be open for institutional investors on Tuesday, while retail investors will be able to bid on Wednesday. Retail investors will receive shares at a 5 percent discount to the cut-off price.
The shares in the OFS were fully subscribed as of 1.45 p.m.
Sugar Shares Fall After Government Imposes Stock Limits
Most sugar makers declined after the government imposed a two-month stock limit for sugar mills to ensure stable prices during the upcoming festive season.
- Balrampur Chini Mills (-1.21 percent)
- Bajaj Hindusthan Sugar (-1.34 percent)
- Shree Renuka Sugars (-1.15 percent)
- Dalmia Bharat Sugar (-1.71 percent)
- Triveni Engineering (-2.02 percent)
- EID Parry (-0.22 percent)
Stocks Moving On Nifty Rejig
India’s benchmark Nifty 50 index will go back to being a gauge of 50 stocks from September 29 when the next set of periodic changes kick in.
Stock Included In Nifty 50 Index
- UPL +2 percent to Rs 856
- HPCL +2.63 percent to Rs 475.50
- Bajaj Finance -0.97 percent to Rs 1,808
Stocks Excluded From Nifty 50 Index
- Bank of Baroda -2.5 percent to Rs 140.65
- Tata Motors DVR -1.98 percent to Rs 220.75
- ACC -1.63 percent to Rs 1,786
- Tata Power -1.71 percent to Rs 77.50
Rupee Weakens
The rupee weakened by 5 paise against the U.S. currency to trade at 63.96 in early trade due to month-end dollar demand from importers and banks.
Forex dealers said month-end demand for the U.S. currency from importers and a lower opening in the domestic equity market put pressure on the rupee. A weak dollar overseas however provided some cushion to the domestic currency, they added.
Yesterday, the rupee had rallied by 13 paise to end at a near three-week high of 63.91 a dollar on account of heavy selling of the US currency by exporters and banks.
PTI
RBL Bank Gains After Multiple Block Deals
Shares of the private sector lender rose as much as 6 percent, the most since April 10, after multiple block deals.
Around 1.89 crore shares, or 5 percent of equity, worth Rs 973 crore changed hands in two block deals on the BSE. The shares were traded at an average price of Rs 515-516 each.
Opening Bell
Indian shares declined, snapping a four-day winning streak, following weak Asian trade after North Korea fired a ballistic missile over Japan, promising to fan simmering tensions with the U.S.
The S&P BSE Sensex fell 0.44 percent to 31,608 and the NSE Nifty 50 Index declined 0.40 percent to 9,873. Trading volume was 21 percent lower than Nifty’s 30-day average.
Eighteen out of 19 sector gauges compiled by the BSE Ltd. declined, led by the S&P BSE Power Index’s 1.20 percent drop. The S&P BSE Oil & Gas index was the only gainer.
Money Markets Heads-Up
Trade started on a sombre note with North Korea firing an unidentified ballistic missile over Japan, sparking tensions after the war of words earlier this month between Pyongyang and U.S. President Donald Trump.
Unsurprisingly, assets considered safe havens like the Japanese yen and U.S. government bonds have climbed, while Asian equities and currencies considered risky have declined.
The rupee climbed yesterday by the most in three weeks amid broad dollar weakness. There may be a reversal of this move today if risk aversion persists among traders.
In the bond market, government securities are being weighed down by supply concerns. The benchmark 10-year yield has climbed 10 basis points so far this month on track for its first monthly advance since April.
Stocks To Watch
- NTPC: Government to sell 41.22 crore shares or 5 percent stake in company via offer for sale. Floor price set at Rs 168 per share.
- Century Plyboards: Acquired additional 2 percent in Huesoulin wood processing factory increasing holding to 51 percent
- Magma Fincorp: Acquires 26 percent stake in Magma ITL Finance from International Tractors Ltd.
- Infosys: Company informed that some members of the promoter and promoter group may participate in the proposed buyback
- Vijaya Bank: Bank opened QIP. Floor price of Rs 66.36 per share
- Jaypee Power: Lenders of Jaypee Power seek bids for 30 percent stake dilution, PTI reported
For a complete list of stocks, click HERE
Earnings To Watch
- Dharamsi Morarji Chemicals
- Dhunseri Tea
- JHS Svendgaard
- KEI Industries
- Minda Industries
Earnings Reaction To Watch
Camlin Fine (Q1FY18 YoY)
- Revenue down 2.1 percent to Rs 140 crore
- EBITDA Margin at -8 percent from 11.6 percent
- Net loss of Rs 11 crore against a profit of Rs 3 crore
Suryalakshmi Cotton Mills (Q1FY18 YoY)
- Revenue down 9 percent to Rs 172 crore
- EBITDA halved to Rs 13.5 crore
- Margin narrowed to 7.8 percent from 14.3 percent
- Profit fell 93 percent to Rs 0.5 crore
Rajshree Sugars (Q1FY18 YoY)
- Revenue up 47.6 percent to Rs 211 crore
- EBITDA fell 34.3 percent to Rs 22 crore
- Margins narrowed to 10.9 percent from 33.5 percent
- Profit up 140 percent to Rs 18 crore
8K Miles (Q1FY18 QoQ)
- Revenue up 16.8 percent to Rs 195 crore
- EBITDA grew 7.6 percent to Rs 64 crore
- Margin narrowed to 32.8 percent from 35.6 percent
- Profit went up 11.8 percent to Rs 38 crore
Sayaji Hotels (Q1FY18 YoY)
- Revenue up 26.6 percent to Rs 40.5 crore
- EBITDA up 37.5 percent to Rs 5.5 crore
- Margin expanded to 13.6 percent from 12.5 percent
- Net loss widened to Rs 5 crore from Rs 4 crore.
NGL Fine Chemicals (Q1FY18 YoY)
- Revenue fell 8 percent to Rs 23 crore
- EBITDA fell 66.7 percent to Rs 2 crore
- Margin at 9.5 percent from 25 percent
- Profit fell 60 percent to Rs 1.6 crore
Virinchi (Q1FY18 YoY)
- Revenue up 51 percent to Rs 84 crore
- EBITDA up 124.5 percent to Rs 22 crire
- Margin expanded to 26.2 percent from 17.7 percent
- Profit grew 75 percent to Rs 7 crore
Talking Points
- India says Doklam disengagement process almost completed
- Trump's Moscow hotel ambitions disclosed by his own lawyer
- Pakistan premier intends to work with rival India for peace
- Makeover for world’s oldest city drives steel recovery in India
- CK Hutchison unit receives $1.2 billion tax notice from India
- India monsoon heavy showers seen in cotton, soy, sugar areas. India Monsoon rainfall 5 percent below normal August 28
- Gold jumps on haven demand as North Korea lobs missile across Japan
- Lenders hire SBI Capital to find buyers for two power companies
- Duds of booming Indian stock market win over $20 billion manager
- Ease of doing business: Access to capital still a major hurdle for Indian manufacturing
- Global funds sell Rs 125 crore of local stocks; domestic funds buy Rs 476 crore yesterday: NSE provisional data
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, declined 0.50 percent to 9,864.
Asian stocks fell and the yen gained after North Korea fired a ballistic missile over Japan, promising to fan simmering tensions with the U.S.
Japan’s currency gained versus all major developed peers and the Swiss franc advanced, while the Korean won and Australian dollar dropped in a classic risk-off move.
U.S stocks ended little changed on Monday, with energy and bank shares declining as Tropical Storm Harvey crippled the U.S. energy hub in Texas, while tech and healthcare gave a boost to the Nasdaq.
Gasoline extended gains for a sixth session and oil traded near $47 a barrel after flooding from Tropical Storm Harvey shut refineries in Texas, with energy companies bracing for a second hit.
Gold for immediate delivery gained as much as 0.9 percent to $1,322.41 an ounce, the highest intraday price since November 9, and traded at $1,315.22 in Singapore, according to Bloomberg generic pricing.
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