Market Wrap
Closing Bell
Indian shares climbed, with a key equity benchmark halting best loss-making spree of the year, as traders covered their short positions on monthly derivatives expiry.
The S&P BSE Sensex was little changed at 30,834 while the NSE Nifty 50 advanced 0.1 percent to 9,504, its first gain in seven sessions. The market breadth, however, was more encouraging with buyers outnumbering the sellers 4:1 on the NSE.
The S&P BSE Metal Index gained the most among the sectoral gauges complied by BSE while the S&P BSE Energy Index declined the most.
Private sector lender Axis Bank rose little over 4 percent, top performer on both Sensex and Nifty, after saying about 80 percent of its insolvent loans have been secured.
While the Nifty managed to hold on to some gains, Pankaj Nijhawan, chief client officer at investment advisory firm Intellistocks said the bias clearly remains on the downside. “The index seems to be headed towards 9,360,” he told BloombergQuint by phone.
Nijhawan said a consistent close below 9,340 could take Nifty towards 9,100-9,000. He said investors can add to their existing positions at around those levels. “Investors who are invested should stay invested as the long-term uptrend remains very intact.”
Nijhawan has a contrarian call on the beaten down pharmaceutical stocks, but advised to stick with the large caps.
F&O Check
BQSpotted
IndiGo Extends Fall After It Expresses Interest In Air India
Shares of the low-cost carrier extended its decline after Aviation Minister Ashok Gajapathi Raju said the airline expressed interest in buying stake in the debt-ridden Air India.
The government on Wednesday, set in motion plans to divest stake in the national carrier, currently saddled with a debt of more than Rs 50,000 crore. The inter-ministerial panel headed by finance minister will decide on the amount of stake to be sold and Air India’s debt, Arun Jaitley told reporters yesterday.
No comments on Air India interest due to silent period.IndiGo Statement
To Read The Full Report, Click HERE
Banks Reverse Intraday Gains
Retail Stocks React To Amazon 'Prime' Day
The e-commerce giant will host its first ever Prime Day in India, according to an emailed statement. Prime Day is a yearly event in which Amazon slashes prices on a wide variety of items for its Prime membership customers.
Tinplate Co. Jumps Most In Over Two Months
Shares of the country’s largest tinplate maker rose as much as 6.4 percent after a Mint report said the Tata Steel subsidiary plans to make its tinplate business independent of its parent.
The company said it will stop working as a downstream processing unit for Tata Steel and pursue expansion on its own, the report said quoting a letter sent to shareholders.
Tinplate Co, which converts hot-rolled coils into electrolytic tinplate for Tata Steel, now plans to buy such coils from the parent worth up to Rs 1,800 crore a year, the report added.
European Shares Join Rebound In Global Equities
Steel Stocks Climb
Shares of the metal makers gained anywhere between 3 percent and 0.3 percent on rising steel prices.
Top Gainers
- JSW Steel (+2.8%)
- Jindal Steel (+2.4%)
- Vedanta (+2.2%)
- Tata Steel (+2.2%)
- SAIL (+0.3%)
BQSpotted
Venky's India Jumps Most In Nearly 3 Weeks
- The stock gained as much as 13.5 percent, the most since June 07
- Trading volume was 7.5 times the 20-day average for this time of day
- The Relative Strength Index was 73 indicating that the stock may be overbought
- It has returned 277 percent so far this year
Energy Shares Rebound
Mid-Day Market Update
Eris Lifesciences Gains In Trading Debut
Shares of the healthcare company started trading at Rs 612, higher than its IPO price of Rs 603 on the Bombay Stock Exchange.
The Rs 1,700 crore initial public offering of the Ahmedabad-based pharmaceutical firm was subscribed more than three times.
RCF Worst Performer On S&P BSE 500 Index
The stock slumped after the government said it will sell 5 percent stake via an offer for sale as it looks to meet the steep divestment target set in the Union Budget 2017-18.
The state-owned chemical company will offload 2.75 crore equity shares at a floor price of Rs 74.25 per share, it said in a stock exchange filing on Wednesday.
The centre is looking to raise Rs 200 crore through the stake sale, a senior finance ministry official had told BloombergQuint earlier on Wednesday.
Axis Bank Best On Sensex As 80% Insolvent Loans Seen Secured
Shares of the private sector lender gained 3.5 percent after it said its exposure to major portion of bad loans highlighted by the central bank was secured.
The bank said it had exposure on eight accounts that RBI had advised on initiating insolvency process. It said total fund-based outstanding of the bank on these accounts was Rs 5,071 crore while non-fund based outstanding was Rs 212 crore, according to its exchange filing.
It said the bank has secured around 80 percent of the outstanding. Provision held was 2,497 crore against this outstanding, it said in the filing.
Block Deal Alert
- Central Bank has about 22.1 lakh shares change hands in a block
- SITI Networks has 3.27 crore shares change hands in a block
- Videocon Industries has about 58 lakh shares trade in three block deals
- Power Grid Corp of India has 30 lakh shares change hands in a block
Buyers and sellers were not immediately known
Source: Bloomberg
Opening Trade With BQResearch
Canara Bank Exits CARE Ratings
Canara Bank may have sold its entire stake in CARE Ratings via a single block deal. Around 26 lakh shares or 8.8 percent equity of the ratings agency changed hands on the BSE, according to Bloomberg data.
This stake purchase is an investment in the excellent long term prospects of the credit rating sector in the country.Crisil Press Release
Opening Bell
Indian shares gained following a rebound in global equity markets led by property developers and metal producers.
The S&P BSE Sensex gained as much as 0.5 percent to 30,998 while the NSE Nifty snapped its six-day losing streak after it advanced nearly 0.6 percent to 9,545. The market breadth was firmly tilted in favour of the buyers. About 1,303 stocks advanced and 206 declined on the NSE.
HEADS UP
Brokerage Calls
- Maruti Suzuki: Downgraded to 'Neutral' at UBS with price target of Rs 7,700
- Dr Lal Pathlabs: Downgraded to 'Underweight' at Morgan Stanley with price target of Rs 700
- Ultratech Cement: Jefferies maintains 'Hold' with price target of Rs 3,585
- Tata Motors: HSBC maintains a 'Buy' with a price target of Rs 500
- Eicher Motors: HSBC maintains a 'Buy' with a price target of Rs 30,500
- Voltas: HSBC maintains a 'Hold' with a price target of Rs 485
- L&T Infotech: Raised to 'Outperform' at Macquarie with a target price of Rs 920
Stocks To Watch
- MindTree: Board Approves Rs 270 Crore Buyback Plan
- Rashtriya Chemicals: Offer-For-Sale Floor Price Set At Rs 74.25 Each
- Eris Lifesciences: Shares Start Trading On BSE/NSE
- RPP Infra: Says Founder Sold 9.96% Stake In Opening Market
- Godrej Industries: To Raise Rs 400 Crore Through Godrej Agrovet IPO
- Fortis Healthcare: Shareholders Approve Raising FII Investment Limit To 74% From 24%
For a complete list of stocks to watch, click here
Money Markets Heads-Up
The Indian rupee is seen strengthening against the dollar in line with regional peers. The greenback slid against most major currencies overnight, with the pound building on recent gains as Bank of England Chief Mark Carney said rates may need to rise soon.
This week has seen central bankers from Europe to the U.S. affirm to investors that interest rates are heading higher, triggering pronounced moves in currency markets.
Bonds, on the other hand, are seen in a narrow range as bankers are not too keen to add to positions now due to absence of near-term triggers and due to the recent run up.
Later today, the RBI will auction Rs 30,000 crore of 80-day cash management bill and also hold underwriting auctions for four government bonds that will be sold tomorrow.
5 Things To Watch
Talking Points
- Axis Bank says had exposure on eight accounts initiating insolvency
- India approves plan to sell stake in debt-ridden Air India
- Vedanta makes $3 billion bet to re-energize its biggest oilfield
- Proxy firm opposes Sajjan Jindal-led JSW Holdings’ loans to his wife’s firm
- Cabinet approves higher allowances for central government employees
- Tata Motors, Volkswagen and Skoda alliance runs into rough weather (PTI)
- Government has no immediate plan to raise wheat import tax
- SEBI releases consultation paper on easing of access norms for FPIs
- Global funds sold Rs 469 crore of local stocks; domestic funds bought Rs 169 crore yesterday: NSE provisional data
Good Morning!
The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, climbed 0.3 percent to 9,529.
Stocks in Asia advanced as investors bet the global economy can withstand tighter financial conditions as growth picks up. Banks and technology shares led gains, after the S&P 500 rebounded from the biggest selloff in six weeks.
The dollar slid against most major currencies, with the pound building on recent gains as Bank of England chief Mark Carney said rates may need to rise soon. This week has seen central bankers from Europe to the U.S. affirm to investors that interest rates are heading higher.
The U.S. financial sector had the biggest gains in the S&P 500 on Wednesday, as all 33 banks received the greenlight from the Federal Reserve for capital return plans.
In commodities, West Texas Intermediate crude advanced 0.4 percent to 44.91 a barrel. Prices gained as government data showed a drop in U.S. gasoline supplies that have remained stubbornly high at the start of the season.
Gold rose less than 0.1 percent to $1,250.17 an ounce.
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