Sensex, Nifty Snap Longest Stretch Of Weekly Gains Since January

Indian equity benchmarks rose for second day in a row led by telecom and auto stocks.

The Sensex rose 0.38 percent or 147 points to 38,390 and the Nifty 50 index advanced 0.45 percent or 52 points to 11,589.

On a weekly basis, the benchmarks snapped their longest stretch of gains since January as the weakening rupee raised concerns over earnings growth outlook.

Meanwhile, in today’s session, sixteen of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Telecom index’s 3.35 percent gain. On the other hand, the S&P BSE Power index was top loser, down 0.1 percent.

• Caplin Point: The Chennai-based drugmaker rose as much as 6.4 percent to Rs 530 after the U.S. FDA successfully completed inspection at its sterile injectable unit.
• Motherson Sumi Systems: The Noida-based auto parts maker rose as much as 5.26 percent, the most in nearly two months, to Rs 306.50 after its board approved issuing bonus shares in ratio of one bonus share for every two shares held, Motherson Sum said in an exchange filing.
• Bajaj Auto: The Pune-based two-and three-wheeler vehicle maker rose as much as 3.28 percent, the most in over two months, to Rs 2,874.50 after it announced plan to expand three-wheeler and quadricycle capacity to one million per year.
• Jubilant Lifesciences: The Noida-based generic pharma company rose as much as 9 percent, the most in eight months, to Rs 828.50. Trading volume was 7.1 times its 20-day average.

Indian equity benchmarks extended gains in last 30 minutes of trade paced by gains in Bharti Airtel, ICICI Bank, Hindustan Unilever and Hero MotoCorp.

The Sensex rose 0.4 percent or 149 points to 38,391 and the Nifty 50 index climbed 0.46 percent or 53 points to 11,590.

Overall breadth was positive as 1,540 stocks were advancing while 1,151 were declining on the BSE.

Seventeen out of 19 sector gauges were trading higher led by BSE Auto index's 2 percent surge.

European equities are poised for the biggest weekly decline in more than five months, as tremors across emerging markets spurred concern about growth.

Jai Bala of Cashthechaos.com spoke to BloombergQuint and shared his trading strategies.

• Axis Bank can surprise and go up to Rs 900 as it is coming out of consolidation Rs 750.
• Nifty in the medium term can go up to 12,600. In the short term it can dip towards 10,280.
• Nifty Bank has support 26,100
• Buy Apollo Hospitals with stop loss at Rs 1,040 for target of Rs 1,800 in six months.
• Buy Caplin Point with stop loss at Rs 400 for target of Rs 950 in 3-6 months.

Mid-cap shares were outperforming their larger peers as the S&P BSE MidCap index rose 1 percent compared with 0.2 percent gain in the Sensex.

Reliance Power, NBCC, Max Financial Services, Alkem Labs and Cholamandalam Investment and Finance were among the top gainer from the mid-cap space.

Shares of the Noida-based auto parts maker rose as much as 5.26 percent, the most in nearly two months, to Rs 306.50 after its board approved issuing bonus shares in ratio of one bonus share for every two shares held, Motherson Sum said in an exchange filing.

• Total assets under management (AUM) up 9 percent at Rs 25.2 lakh crore versus Rs 23.05 lakh crore (MoM).
• Total equity AUM up 4.2 percent at Rs 8.04 lakh crore versus Rs 7.72 lakh crore (MoM).

Source: AMFI Website

Indian equity benchmarks were trading in a narrow range as gains in automakers were offset by losses in financials.

The Sensex rose 0.12 percent or 44 points to 38,287 and the Nifty 50 index climbed 0.2 percent or 21 points to 11,558.

Six of 11 sector gauges compiled by the National Stock Exchange were advancing led by the Nifty Auto index’s 1.3 percent gain. On the flipside, Nifty PSU Bank was top loser, down 1.3 percent.

• Vardhman Textiles: The Ludhiana-based textile maker fell as much as 0.6 percent to Rs 1,075. Trading volume was 21 times its 20-day average.
• Godfrey Philips: The Mumbai-based cigarette maker rose as much as 4.55 percent tto Rs 955. Trading volume was 7.8 times 20-day average.
• Praj Industries: The Pune-based engineering company rose as much as 8.75 percent, the most in over nine months, to Rs 93.25. Trading volume was 8 times its 20-day average.
• Jubilant Life Sciences: The Noida-based generic pharma company rose as much as 9 percent, the most in eight months, to Rs 828.50. Trading volume was 7.1 times its 20-day average.

Shares of the Mumbai-based company rose as much as 4.45 percent to Rs 221.65 after it acquired it acquired 85 percent stake in Anirdesh Developers LLP for Rs 17 lakh, Ajmera Realty said in an exchange notification.

Shares of the Delhi-based financial services provider fell as much as 3 percent to Rs 45.55 after its loss widened in June quarter.

Key earnings highlights:

Net loss at Rs 17.07 crore versus loss of Rs 14.05 crore (YoY)

Revenue from operations down 65 percent at Rs 1.63 crore versus 4.73 crore (YoY)

• Interglobe Aviation has 10 lakh shares change hands in a block deal. Stock 3.13 percent at Rs 913.25.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Hyderabad-based drugmaker rose as much as 8.98 percent to Rs 827, also its highest level in 22 months on heavy volumes. Trading volume was 10 times its 20-day average for this time of the day.

In the last three trading sessions, the stock has advanced 20.48 percent. Its Relative Strength Index quoting above 70, indicating that it may be overbought, according to data compiled Bloomberg.

Shares of the Mumbai-based air conditioner maker rose as much as 2.2 percent to Rs 686 as its board is said to meet Blue Star to meet T Rowe Price and Portfolia Japan today.

Shares of the Mumbai-based warships and submarines maker fell as much as 5 percent to Rs 15.35 after it informed exchanges that IDBI Bank has filed an application before the National Companies Law Tribunal (NCLT) for debt resolution.

IDBI Bank, a lender of the company, has filed for an application before the NCLT, Ahmedabad, seeking debt resolution under the Insolvency and Bankruptcy Code (IBC), Reliance Naval said.

Shares of the Gujarat-based large diameter pipe maker rose as much as 5.87 percent to Rs 185 after it signed an agreement for supply of 220 KMT of pipes for oil & gas project in the Americas, Welspun Corp said in an exchange filing.

The company’s current order book including this order stands at 1,776 KMTs valued at Rs 15,000 crore.

Shares of the Pune-based two-and three-wheeler vehicle maker rose as much as 3.28 percent, the most in over two months, to Rs 2,874.50 after it announced plan to expand three-wheeler and quadricycle capacity to one million per year.

The decision came after transport minister Nitin Gadkari’s announcement at the SIAM convention to move to a “no-permit” regime for auto rickshaws powered by alternate fuels.

The company said that it is the market leader with 86 percent market share in the alternate fuel three-wheelers.

Indian equity benchmarks declined dragged by Sun Pharma, ICICI Bank, State Bank of India and HDFC Bank.

The S&P BSE Sensex fell 0.35 percent or 121 points to 38,120 and the NSE Nifty 50 index ddeclined 0.25 percent or 30 points to 11,506.

Fourteen of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Bankex index's 1 percent drop. On the flipside, the S&P BSE Oil & Gas index was top gainer, up 0.4 percent.

The mid- and small-cap shares also witnessed selling pressure as the S&P BSE MidCap and S&P BSE SmallCap indexes fell 0.1 percent each.

• Rupee opened higher at 71.92 per dollar against yesterday's close of 71.99. However, the local unit soon weakened past 72 per dollar.

Indian sovereign bonds are headed for a fourth successive week of decline as higher oil prices and a weaker rupee have raised concern over inflation and worsening government finances.

At a time like this, cutoff at the auctions will be very closely watched. Yield on the 10-year note has climbed 10 basis points in the week. Till the auction, yield may trade between 8-8.10 percent in the day.

The rupee continues to remain under severe pressure as emerging market uncertainty remains. It dropped to 72.1050 a dollar in the last session to a fresh record.

Implied opening suggests the rupee to start trading at around 71.9123 and dealers expect a range of 71.80-72.25 in the day.

IDFC Securities on Aurobindo Pharma

• Maintained ‘Outperformer’ with a price target of Rs 900.
• Sandoz business acquisition is positive strategically as well as financially.
• Niche dermatology segment has significant long-term competitive advantage.
• Aurobindo is our preferred pharma pick.

Nomura on Bharat Forge

• Maintained ‘Neutral’ with a price target of Rs 700.
• August North America Class 8 orders breaks July’s record.
• Expect 25 percent and 15 percent growth in commercial vehicles in the current and the next financial year respectively.
• Adverse U.S. regulations could impact earnings.

Nirmal Bang on Sanofi India

• Initiated ‘Buy’ with a price target of Rs 7,570
• Earnings to outpace revenue growth led by high-margin portfolio.
• Key growth drivers: insulin portfolio, Allegra and Combiflam topical pain relief gel/spray.
• Expect revenue and net profit to grow at a compounded annual growth rate of 11 percent and 24 percent respectively over 2017-2020.

Who’s Meeting Whom

• Blue Star to meet T Rowe Price and Portfolia Japan on Sept. 7.
• Dr Lal PathLabs to meet Alder Capital on Sept. 7.
• Magma Fincorp to meet Goldman Sachs on Sept. 7.

• Oriental Hotels promoter acquired 60,000 shares on Sept. 4.
• Nava Bharat Ventures promoter group acquired 9,000 shares on Sept. 5.
• Kitex Garments promoter acquired 16,800 shares on Sept. 5.
• Confidence Petroleum India promoter acquired 1.1 lakh shares on Sept. 5.
• Balaji Amines promoters acquired 9,000 shares on Sept. 5.

• Nifty September futures ended at 11,567, with a premium of 30 points versus 41.3 points.
• September series: Nifty open interest up by 3 percent and Bank Nifty open interest down by 8 percent.
• India VIX ended at 13.7, up 0.5 percent.
• Max open interest for September series call at 11,800 strike price call option (open interest at 41.6 lakh shares, down 0.5 percent).
• Max open interest for September series put at 11,400 strike price put option (open interest at 44.6 lakh shares, up 15 percent).

Bulk Deals

One Point One Solutions: HSBC Asset Management (I) Pvt. Ltd. sold 1.26 lakh shares at Rs 58.06 apiece. The company is an SME listed on NSE Emerge Exchange.

Trading Tweaks

Garware Polyester placed under additional surveillance measures.

Out of ASM Framework

• Amrutanjan Health Care
• Borosil Glass Works
• International Paper
• JK Paper
• Kirloskar Oil Engines
• Lincoln Pharmaceuticals
• Pfizer
• Tamil Nadu Newsprint

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• The two verdicts that paved the way for decriminalising gay sex in India
• U.S., India pledge deeper defense ties despite Iran disagreement
• India proposes a goal of 15 percent electric vehicles in five years
• Heroes go missing in emerging markets as rout creates value
• Metro plans wholesale online platform for kirana stores
• Stage set for early elections in Telangana
• Emerging-market rout claims a blameless victim

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.17 percent to 11,564 as of 7:28 a.m.

Asian stocks are ending the worst week since March mixed amid ongoing concerns about global trade and emerging markets. The yen rose and Treasuries held onto gains.

Equities fell in Japan, South Korea and Australia, while stocks in China and Hong Kong posted gains. Emerging-market stocks steadied after entering a bear market while currencies pared overnight losses.

Currencies

• The Japanese yen rose 0.2 percent to 110.58 per dollar.
• The offshore yuan rose 0.2 percent to 6.8326 per dollar.
• The euro fell less than 0.05 percent to $1.1619.
• The Bloomberg Dollar Spot Index fell less than 0.05 percent to 1,183.69.

Commodities

• West Texas Intermediate crude gained 0.2 percent to $67.90 a barrel.
• Gold rose 0.2 percent to $1,202.64 an ounce.
• LME copper fell less than 0.1 percent to $5,926.50 per metric ton.