The Bombay Stock Exchange (BSE) building, left, looms over a no-entry street sign in Mumbai. Photographer: Prashanth Vishwanathan/Bloomberg

Sensex, Nifty Recover Losses to End Flat After Last Hour Rally in IT, Bank Stocks

Closing Bell

Indian shares recovered their intra-day losses to close slightly higher led by a rally information technology and banking companies.

The S&P BSE Sensex is little changed at 27,990 and so is the Nifty at 8,632. However, the indices are up around 0.6 percent from their day’s lows.

IPO Update

RBL Bank IPO subscribed 18 times

The initial public offering of private lender is subscribed 18 times on the last day of the 3-day issue as of 2:00pm.

The quota reserved for qualified institutional buyers (QIBs) was subscribed 28.39 times while the non-institutional investors portion was subscribed 37.98 times. The chunk set aside for retail investors saw subscription of 4.7 times the issue size, as per the NSE data.

Metal, Cement Stocks Slide After Railways Revises Freight Rates

Shares of metal and cement companies fell after the Indian Railways revised its freight rates and coal tariff structure.

Top Losers in Metals

  • Vedanta (-1.6%)
  • Tata Steel (-1%)
  • Nalco (-0.9%)
  • NMDC (-0.9%)
  • JSW Steel (-0.8%)
  • Hindalco Industries (-0.7%)

Top Losers in Cement

  • Shree Cement (-2.3%)
  • Deccan Cements (-1.9%)
  • Birla Corp (-3.13%)
  • Sagar Cements (-1.4%)
  • JK Cement (-1.1%)
  • Ramco Cements (-1%)
  • ACC (-0.3%)
  • Ambuja (-0.3%)

Tata Power Declines After Q1 Net Slumps 78%

Shares of the electricity maker fell as much as 3.2 percent to Rs 74 after its first quarter profit slumps 78 percent to Rs 72.49 crore. It had made a profit of Rs 303 crore in the same period last year.

It clocks a net sales of Rs 6,806 crore, down 26 percent year-on-year.

Prabhat Dairy Jumps After Edelweiss Rates New Buy

Shares of the dairy firm rise as much as 20 percent to Rs 94 after broking firm Edelweiss put a “Buy” rating on the stock with a price target of Rs 144.

“Prabhat is moving up the value chain with focus on value-added products such as cheese, paneer, shrikhand,” Shradha Seth, analyst at Edelweiss wrote in a note. Seth expects the share of value-added product sales to jump 17 percent from 4 percent currently over the FY16-18.

Also Read: Even After World-Beating Rally, India Refiners Are Cheap for SBI

Shriram EPC Soars 22% on Order Win

Shares of Chennai-based Shriram EPC Ltd. rose as much as 22 percent to Rs 26.45 after the company’s subsidiary in Sharjah, Shriram EPC FZE, received a Rs 1,530 crore contract in Oman.

Must Read: Armed with Rs 1,530 Crore Order, Shriram EPC Expects a Turnaround in 2018

Also Read: Shree Renuka Sugars Reports Rs 3.2 Crore Profit; Stock Rises

Welspun India Tanks Another 20%

Shares of the textile maker drop another 20 percent to Rs 66, hitting its daily limit, after Wal-Mart Stores said it is reviewing supplier Welspun’s cotton certification records.

This follows Target Corp. ending all business with Gujrat-based firm after saying the supplier was sending it phony Egyptian cotton sheets.

Wal-Mart is Welspun’s third-biggest customer, according to data compiled by Bloomberg.

Welspun stock has lost over 40 percent since Monday.

Stocks Radar: Fortis Malhar, Tata Power, Hindustan Petroleum and More

Opening Bell

Indian shares dip marginally for a third day in a row, as lack of any meaningful data left investors nothing to do but focus their attention on U.S. Federal Reserve’s Jackson Hole summit later this week.

The S&P BSE Sensex declines 0.1 percent to 27,940; while the NSE Nifty loses 0.2 percent to 8,609. The market breadth is slightly skewed in favour of the bulls currently with 757 advances, 663 declines and 411 stocks remaining unchanged.

Stocks to Watch

  • Indo Count Industries to consider stock split
  • MEP Infrastructure: Wins toll collection contract in Jharkhand
  • Reliance Infrastructure: Completes 100 percent sale of cement unit to Birla Corp.
  • BSE to drop Transport Corp, add Infibeam to BSE 500 from August 26
  • Claris Lifesciences: Carlyle readies bid for Claris’s injectable drugs business (Mint)

IPO Watch

  • RBL Bank IPO gets 3.1 times demand for shares offered, at 2nd day sale yesterday; offer scheduled to close today

Earnings Reaction to Watch

  • Hindustan Petroleum: Q1 net income rises 30 percent YoY to Rs 2,098 crore
  • Shree Renuka Sugar: Q1 profit Rs 3.2 crore versus Rs 150 crore loss

For complete list of stocks to watch, click HERE

Talking Points

  • India considering suggestion to move budget proposal to January
  • Shipping ministry seeks petroleum cess share for inland waterways
  • HPCL’s Iran crude imports to touch 235,000 tonne by end-August
  • India 2016-17 cotton harvest seen matching year earlier output
  • NTT Docomo to give Tata Sons two week’s extension to file appeal
  • Indo Count Industries to consider stock split
  • Global funds sell Rs 301 crore of local stocks; domestic funds buy Rs 52.5 crore yesterday: Provisional data

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, is little changed at 8,622.

U.S. stocks end little changed Monday, but were under pressure all day as oil extended its retreat from a seven-week high. The dollar weakened versus most peers as traders remained less than convinced that the U.S. Fed will raise interest rates this year.

Global markets have been dominated over the past week by speculation about the timing of the Federal Reserve’s next interest-rate increase. Traders will be seeking further guidance when Yellen speaks at an annual symposium in Jackson Hole, Wyoming later in the week.

Asia shares trade mixed this morning on lack of any major data.

Also Read: El-Erian Says Fed Risks ‘Collateral Damage’ by Keeping Rates Low

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