KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Clock Worst Fall In Nearly Two Weeks
Indian equity benchmarks registered their worst fall since Sept. 03, 2019.
The S&P BSE Sensex ended 0.7 percent lower at 37,123.31 and the NSE Nifty 50 ended 0.65 percent lower at 11,003.50. The broader markets represented by the NSE Nifty 500 Index closed 0.46 percent lower.
Homegrown brokerage and research firm ICICI Securities expects the 50-stock index to inch towards 11,200 in coming weeks, according to its research report.
“Going ahead, we reiterate our bullish stance. We expect the index to extend the ongoing up move towards our earmarked target of 11,200 in coming weeks, underpinned by strong market breadth and outperformance in cyclical heavy weights, which contribute almost 65 percent weightage of the Nifty,” the research firm said in a note. “In the process, we expect any throwbacks to result into higher base formation wherein we do not expect Nifty to breach 10,850.”
Besides, ICICI Securities also expects the outperformance of mid and small caps to continue.
“Any corrective declines should be utilised as an incremental opportunity to buy quality mid-cap stocks,” ICICI Securities said.
The market breadth, however, was tilted in favour of buyers. About 965 stocks advanced and 813 shares declined on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 1.3 percent fall. On the flipside, the NSE Nifty FMCG Index was the top sectoral gainer, up 0.56 percent.
In the commodity front, oil posted its biggest ever intraday jump, surging above $71 a barrel after a strike on a Saudi Arabian oil facility removed about 5 percent of global supplies.
M&M Worst Performer On Sensex, Second-Worst Performer On Nifty
Shares of Mahindra & Mahindra Ltd. fell as much as 2.8 percent to Rs 535.65.
The company will observe no production days between 8-17 days for automotive and farm equipment sector. It will range between 1-3 days for the second quarter of the current financial year.
The stock was the worst performer on Sensex and second-worst performer on Nifty.
Commodity Update: Brent Crude Off 20% High
Asia’s crude benchmark–Brent crude rose 9.2 percent to $65.78 a barrel. It jumped 19.5 percent intraday.
Global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility removed about 5 percent of global supplies.
Read to get up to speed:
- Yes, Iran was behind the Saudi oil attack. Now what?
- Trump authorises release of oil from U.S. strategic reserve.
- U.S. oil companies set to benefit from Saudi supply disruption.
- Attack on Saudi Oil Plant is what everyone feared.
Bond Market Update: 10-Year Yield Rises Seven Basis Points
The yield on the 10-year note rose seven basis points to 6.7 percent. It rose nearly nine basis points intraday.
Money Market Update: Rupee Near Day’s Low
The Indian rupee traded near day’s low against the U.S. dollar. The home currency depreciated 0.88 percent to 71.55 against the greenback.
The local legal tender depreciated 1.06 percent intraday.
Sensex, Nifty Set For Worst Fall In Nearly Two Weeks
Indian equity benchmarks are set for their worst fall in nearly two weeks.
The S&P BSE Sensex fell 0.66 percent to 37,142 as of 3 p.m. and the NSE Nifty 50 fell 0.62 percent to 11,006. The broader markets represented by the NSE Nifty 500 Index fell 0.42 percent.
The market breadth, however, was tilted in favour of buyers. About 956 stocks advanced and 806 shares declined on National Stock Exchange.
Fab Four Stocks Of The Day
Texmaco Rail & Engineering
- Stock rose as much as 4.9 percent to Rs 51.60.
- Board sets rights issue price at Rs 46.7 per share in order to raise Rs 200 crore.
- Rights entitlement rate at 19 equity shares for every 100 shares, with record date being Sept. 25.
Graphite India
- Stock hit upper circuit of 20 percent at Rs 373.50
- Shares extended gains for the eighth consecutive trading session.
- Stock rose over 35 percent in the past eight trading sessions.
Timken India
- Stock rose as much as 9.9 percent, the most in nearly four months to Rs 759.90.
- Shares at 52-week high.
Suven Life Sciences
- Stock rose as much as 10 percent to Rs 304.40.
- Trading volume was 17 times its 20-day average.
Stocks Moving On Heavy Volumes
Fertilisers & Chemicals Travancore
- Stock rose as much as 16.8 percent to Rs 46.
- Trading volume was almost 18 times its 20-day average.
Phillips Carbon Black
- Stock rose as much as 15.5 percent to Rs 137.80.
- Trading volume was almost 12 times its 20-day average.
Grandeur Products
- Stock hit 5 percent lower circuit at Rs 296.40.
- Trading volume was almost 14 times its 20-day average.
Adani Green Energy
- Stock rose as much as 14.4 percent to Rs 57.50.
- Trading volume was almost 13 times its 20-day average.
Emami Jumps The Most In Nearly Three Months
Shares of Emami rose as much as 6.8 percent, the most since June 26, to Rs 320.
Of the shares traded, 29 percent were at the ask price and 23 percent were at the bid, Bloomberg data showed. The stock rose 7 percent in the past five days and gained 4.5 percent in the past 30 days.
Emami traded at 27 times its estimated earnings per share for the coming year, according to Bloomberg data.
Markets Commentary: Selling Pressure On Nifty Below 10,950 Could Lead To ‘Panic Selling’, Reliance Securities Says
The selling pressure on Indian equity benchmark NSE Nifty 50 below 10,950 is likely to lead to a ‘panic selling’.
That’s according to Arun Kumar, market strategist at Reliance Securities. “The early morning sentiments for global equity markets were negative due to the attack on one of the Saudi crude facilities. Indian equities are particularly sensitive to changes in crude prices and rupee-dollar rates and these were adversely opened,” Kumar said in a mailed statement.
Market Check: Sensex, Nifty Struggle To Recover
Indian equity benchmarks struggled to recover from day’s low.
The S&P BSE Sensex fell 0.6 percent to 37,158.74 as of 2 p.m. and the NSE Nifty 50 fell 0.63 percent to 11,006. The broader markets represented by the NSE Nifty 500 Index fell 0.46 percent.
The market breadth, however, was tilted in favour of buyers. About 890 stocks advanced and 859 shares declined on National Stock Exchange.
Global Markets Update: Equities Decline
European stocks slipped with U.S. futures, while shares in Asia were mostly lower.
- Futures on the S&P 500 Index decreased 0.3 percent.
- The Stoxx Europe 600 Index sank 0.4 percent.
- The Shanghai Composite Index was little changed.
- The MSCI Emerging Market Index decreased 0.3 percent.
Get your daily fix of global markets here.
Graphite India, HEG Jumps Over 10%
Shares of Graphite India rose as much as rose as much as 10.04 percent to Rs 342.50, while shares of HEG rose as much as 13.8 percent to Rs 1,344.
While HEG extended gains for the fourth consecutive trading session, Graphite India has risen for the eighth consecutive trading session.
Market Check: Sensex, Nifty At Day’s Low
Indian equity benchmarks were trading at day’s low, led by the declines in HDFC Ltd. and Reliance Industries Ltd.
The S&P BSE Sensex fell 0.86 percent to 37,062 as of 1 p.m. and the NSE Nifty 50 fell 0.87 percent to trade below 11,000. The broader markets represented by the NSE Nifty 500 Index fell 0.75 percent.
Stocks Moving On Heavy Volumes
3M India
- Stock fell as much as 17.7 percent to Rs 16,749.95.
- Trading volume was 90 times its 20-day average.
Techno Electric & Engineering
- Stock fell as much as 1.3 percent to Rs 255.
- Trading volume was 19 times its 20-day average.
Timken India
- Stock rose as much as 10 percent to Rs 759.90.
- Trading volume was 16 times its 20-day average.
Suven Life Sciences
- Stock rose as much as 10 percent to Rs 304.40.
- Trading volume was 17 times its 20-day average.
India’s Wholesale Inflation In August Remains Unchanged
India’s wholesale inflation in August was unchanged from the previous month.
Inflation as measured by the wholesale price index stood at 1.08 percent in August—the same levels it clocked in the previous month, according to data released by the Ministry of Commerce and Industry. A Bloomberg poll of economists had pegged the figure at 1 percent.
Sectoral Indices Check: Nifty Financial Services Index Worst Sectoral Performer
Seven out of the eleven sectoral indices compiled by NSE traded lower, led by the NSE Nifty Financial Services Index’s 0.5 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 1.2 percent.
Nifty Realty Index Swings As Government Announce Sops
The NSE Nifty Realty Index fluctuated between gains and losses to trade 0.13 percent higher.
Phoenix Mills Ltd. and Indiabulls Real Estate Ltd. were the top performers on the index while Sunteck Realty Ltd. and DLF Ltd. were the worst performers.
Finance Minister Nirmala Sitharaman announced the creation of a special fund to provide financing to the many stalled affordable and middle-income housing projects in the country. The government will contribute Rs 10,000 crore to the fund, and expects a similar-sized contribution from external entities such as Life Insurance Corporation, banks, sovereign funds etc.
Market Check: Sensex, Nifty Off Day’s Low
Indian equity benchmarks were off day’s low, led by the gains in Tata Consultancy Services Ltd., Hindustan Unilever Ltd. and ICICI Bank Ltd.
The S&P BSE Sensex fell 0.35 percent to 37,250.51 and the NSE Nifty 50 fell 0.32 percent to 11,042. The broader markets represented by the NSE Nifty 500 Index fell 0.13 percent.
Reliance Communications Gains After Unit Files For Bankruptcy
Shares of Reliance Communications rose as much as 5.6 percent to Rs 0.95.
The company’s unit GCX Ltd., which owns the world’s largest private undersea cable system, has filed for bankruptcy protection.
The stock extended gains for the fifth consecutive trading session, its longest gaining streak in over two months. The scrip advanced 36 percent in the past five days and fell 21 percent in the past 30 days, Bloomberg data showed.
F&O Check: Nifty 11,000 Put Option Surges 84%
Nifty’s 11,000 put option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the weekly contract, which is set to expire today, rose 83.95 percent to Rs 54.45. Over 4.03 lakh shares were removed from the open interest which stood at over 22.82 lakh shares.
Colgate-Pamolive Gains The Most In Over Nine Months
Shares of Colgate-Pamolive India rose as much as 5.2 percent, the most since Dec. 11, 2018, to Rs 1,319.30.
Trading volume was 10 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
The stock extended gains for the third consecutive trading session, its longest gaining streak in nearly a month. The scrip returned 17 percent in the past 12 months compared to a 2.4 percent loss in the Sensex.
Equitas Holdings Drops The Most In Nearly 11 Months
Shares of Equitas Holdings fell as much as 17.8 percent, the most since Oct. 26, to Rs 96.25.
SEBI has returned the draft scheme for listing of Equitas Small Finance Bank and advised to company to resubmit the same after ensuring compliance with norms. The company said that the bank will initiate necessary steps to lists its share through IPO which is expected to be completed by March 2020.
Trading volume was almost 15 times its 20-day average, Bloomberg data showed. The stock traded at 11 times its estimated earnings per share for the coming year, according to Bloomberg data.
Brokerage and research firm Investec cut the stock’s price target to Rs 140 from Rs 190, implying a potential upside of 42.1 percent from the last regular trade.
“We note that the holding company’s discount could be lower, given there is no dividend tax leakage, no capital allocation concerns and the holding company is likely to merge with the bank in two years,” Investec said in a note.
Reliance Industries Second-Worst Performer On Sensex
Shares of Reliance Industries fell as much as 3 percent to Rs 1,188.50. The stock was the worst performer on Sensex.
This after the Global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility removed about 5 percent of global supplies.
Trading volume was more than double its 20-day average, Bloomberg data showed. Of the shares traded, 39 percent were at the ask price and 41 percent were at the bid.
Large Trade Alert: 3M India, Biocon, CG Power
- 3M India: About 1.1 percent equity changed hands in a single large trade.
- Biocon: About 28.5 lakh shares changed hands in a large trade.
- CG Power: About 6.27 crore shares changed hands in a large trade during the pre-market open.
Buyers and sellers were not known immediately.
Source: Bloomberg
Oil Marketers Decline On Soaring Crude Prices
Shares of the oil marketing companies declined after Asia’s crude benchmark–Brent crude rose nearly 10 percent to $66.18 a barrel. It jumped 19.5 percent intraday.
Shares of Bharat Petroleum Corporation and Hindustan Petroleum Corporation fell nearly 5 percent each, while shares of Indian Oil Corporation fell nearly 3 percent.
Read to get up to speed:
- Yes, Iran was behind the Saudi oil attack. Now what?
- Trump authorises release of oil from U.S. strategic reserve.
- U.S. oil companies set to benefit from Saudi supply disruption.
- Attack on Saudi Oil Plant is what everyone feared.
Opening Bell: Sensex, Nifty Open Lower
Indian equity benchmarks opened lower inline with Asian peers.
The S&P BSE Sensex fell as much as 0.7 percent to 37,121.56 and the NSE Nifty 50 fell as much as 0.79 percent to 11,026. The broader markets represented by the NSE Nifty 500 Index fell as much as 0.74 percent.
The market breadth was tilted in favour of sellers. About 928 shares advanced and 500 stocks declined on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.13 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.52 percent.
Your Complete F&O Trade Setup
September Futures
- Nifty September futures closed at 11,105 premium of 29.6 points versus 13.6 points.
- Nifty futures OI down 2 percent, sheds 3.7 lakh shares in OI.
- Bank Nifty September futures closed at 28,163, premium of 65 points versus 5.9 points.
- Bank Nifty futures OI up 2.5 percent, adds 40k shares in OI.
Options
- Nifty PCR at 1.34 Versus 1.26 (across all series).
Nifty Weekly Expiry: Sept. 19
- Max OI on call side at 11,100 (17.9 lakh shares).
- Max OI on put side at 11,000 (26.8 lakh shares)
- OI addition seen at 11,000P (+11.2 lakh shares), 10,950P (+8 lakh shares).
Nifty Monthly Expiry: Sept. 26
- Max OI on call side at 11,200 (25.9 lakh shares).
- Max OI on put side at 10,800 (31.1 lakh shares).
BQ Heads-Up: Fund Flows, Indian ADRs, Who’s Meeting Whom, Insider Trading
Money Market Update: Rupee Opens Lower
The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 1.06 percent to 71.67 against the greenback.
Besides, the yield on the 10-year note rose as much as six basis points to 6.6 percent.
Market Commentary: UBS Cautious On Indian Markets Citing Unattractive Risk-Reward
International brokerage and research firm UBS was cautious about the future market trend.
“Our Nifty target for June 2020 is 11,100 with upside and downside scenarios of 13,200 and 9,200, respectively, implying the risk-reward isn’t attractive for the market,” Gautam Chhaochharia, India analyst at the brokerage, said in a report on Sept. 13.
“We still expect a narrow market ahead and remain underweight on small-mid caps, industrials and autos,” Chhaochharia said.
Pre-Market Check: Sensex, Nifty Set To Open Lower
Indian equity benchmarks are set to open lower, following negative cues in Asian peers.
The S&P BSE Sensex fell 1.9 percent to 36,679 during the pre-market trade and the NSE Nifty 50 fell 1.4 percent to 10,919.
Commodity Update: Oil Jumps Nearly 20%
Global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility removed about 5 percent of global supplies.
Asia’s crude benchmark–Brent crude rose nearly 10 percent to $66.18 a barrel. It jumped 19.5 percent intraday.
Read to get up to speed:
- Yes, Iran was behind the Saudi oil attack. Now what?
- Trump authorises release of oil from U.S. strategic reserve.
- U.S. oil companies set to benefit from Saudi supply disruption.
- Attack on Saudi Oil Plant is what everyone feared.
Bulk Deals: India Energy Exchange
- Amansa Holdings acquired 1.09 crore shares (3.7 percent) at Rs 115.18 per share
- Agri Power and Engineering Solutions sold 93.8 lakh shares (3.1 percent) at Rs 115.3 each
Datawatch: August Wholesale Inflation
- 12 p.m.: India WPI Inflation for August.
- Sept. 18: U.S. Federal Open Market Committee rate decision
Stocks To Watch: M&M, Equitas, Realty Shares, Reliance Home Finance
- Real Estate stocks in focus after Finance Minister Nirmala Sitharaman announced the creation of a special fund to provide financing to the many stalled affordable and middle-income housing projects in the country. The government will contribute Rs 10,000 crore to the fund, and expects a similar-sized contribution from external entities such as Life Insurance Corporation, banks, sovereign funds etc.
- Prabhat Dairy: Board approved delisting proposal of the company. The floor price is set at Rs 63.77 per share which is at a discount price of 20 percent to the closing prices as on Sept. 13.
- Reliance Home Finance: Care Ratings downgraded the rating to D (Default) for company’s long-term debt program due to delay in servicing of principal on one of the NCDs of the company. The company said that this rating actions was untimely and uncalled for, specifically since the company is working on a Resolution Plan.
- Equitas Holdings: SEBI has returned the draft scheme for listing of Equitas Small Finance Bank and advised to company to resubmit the same after ensuring compliance with norms. The company said that the bank will initiate necessary steps to lists its share through IPO which is expected to be completed by March 2020.
- Indiabulls Housing Finance: Delhi High Court passed an injunction order against Rajya Sabha member Subramanian Swamy and others from publishing in digital platform, in respect of allegations against the company which are false, offending, defamatory as tweeted by Subramanian Swamy. The company had filed a civil suit in Delhi High Court. Court has also directed Twitter, Facebook, WhatsApp etc. to remove offending false messages from their portals within two weeks from Sept. 13.
- PVR clarified on the new of the company not passing GST benefits stating that it had received a notice on Aug. 31 from Directorate General of Anti-Profiteering for initiation of the investigation in respect of certain cinemas in Telangana, seeking certain clarifications. The company has already filed its response and provided relevant documents as sought by the authorities.
- Texmaco Rail & Engineering: Board sets Rights Issue price at Rs 46.7 per share seeking to raise Rs 200 crore. Rights entitlement ratio at 19 equity shares for every 100 shares, with record date being Sept. 25.
- Cox & Kings Financial Service: Board has approved the surrender of NBFC license of the company considering the ongoing challenges and slowdown in NBFC environment.
- Piramal Enterprise: Board approved issue up to Rs 800 crore via NCDs.
- Bharat Electronics won orders worth Rs 5,357 crore for Akash Missile Systems for Indian Air Force.
- TV Today Network: HDFC Mutual Fund increased its stake to 9.25 percent from 7.15 percent in the company.
- Emami Paper Mills: Board of Directors have approved surrender of land in Gujarat allotted by GIDC for Greenfield Expansion Project.
- Alembic-Demerger: Cost of acquisition for Alembic’s equity share at 98.84 percent and the remaining stake will be 1.16 percent towards preference shares of Shreno.
- Hudco received loan sanctions of Rs 6,793.21 crore and loan releases of Rs 5,160.94 crore as on Aug. 31.
- Omax Auto: India Ratings & Research has downgraded Long Term Issuer Rating to BBB+ from A-, with outlook remaining stable.
- Info-Edge increased its stake to 32.85 percent in ShoeKonnect for Rs 4 crore.
- Mahindra & Mahindra to observe no production days between 8-17 days for automotive and farm equipment sector. It will range between 1-3 days for the second quarter of the current financial year.
- SML Isuzu has decided to shut its chassis manufacturing plant in Punjab from Sept. 16-21. Need based production will continue for Bus Body Division.
- Canara Bank: Board gave in-principle approval for amalgamation of the Bank with Syndicate Bank and approved capital infusion of Rs 9,000 crore by the Government of India via preferential allotment of equity shares.
- Syndicate Bank: Board gave given in-principle approval for amalgamation of Bank with Canara Bank.
- United Bank of India reduced MCLR across various tenors with effect from Sept. 16. Three-month MCLR at 8.25 percent and One-year MCLR at 8.45 percent. Board to consider amalgamation of the Bank with Oriental Bank of Commerce and Punjab National Bank on Sept. 18 and consider raising Rs 3,000 crore from Government of India.
- Andhra Bank: Board as given in-principle approval for amalgamation of the Bank with Corporation Bank and Union Bank of India. Bank has decreased MCLR across various tenors. One-Month MCLR at 7.95 percent and One-Year MCLR at 8.4 percent.
- Indian Bank: Care Ratings has placed s placed the ratings assigned to various debt instruments of the Bank on credit watch with developing implications, following the recent announcement by Ministry of Finance regarding the proposed amalgamation of Allahabad Bank into the Bank.
- Eveready Industries & McLeod Russel in focus after the High Court of Calcutta has passed an ad-interim order of injunction by which, the company has been restrained from transferring, alienating or encumbering any of its assets till the disposal of the said application in reference to a matter filed against some of the promoters of the company with regards to certain alleged dues, The company has been advised that since it is neither a party to any agreement or arrangement with the petitioner, in respect of the said alleged dues nor does any claim pertaining to the said dues arise from, the said ad-interim order against the company, should not be legally tenable. The matter is currently sub-judice and the company is in the process of taking appropriate action against the said order based on advice from its legal counsel.
Nifty Futures Suggests Stock Losses; Saudi Arabia Stocks Decline
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.9 percent to 11,002.50 as of 8:10 a.m.
Saudi Arabia stocks declined, with the Tadawul All Share Index falling as much as 3.1 percent after the attacks. Markets in Japan are closed on Monday for a holiday.
Global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility removed about 5 percent of global supplies.
Haven assets, including gold, the yen and Treasuries, surged on concern over the geopolitical fallout from the attacks.
On Friday, all three major U.S. indices closed higher for a third consecutive week after being whipsawed by a rotation from growth to shares by some investors.
Get your daily fix of global markets here.
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