Sensex, Nifty End Mixed On Worries Of Earnings Slump Extending

Indian equity benchmarks ended mixed as investors weighed a possible weaker outcome of September quarter earnings.

The S&P SBE Sensex closed 0.22 percent lower at 36,644.42 while the NSE Nifty 50 ended little changed at 10,847.90. The broader markets represented by the NSE Nifty 500 Index closed 0.15 percent higher.

The markets are expected to be volatile and in a very tight range in the near term, Joindre Capital Services’ Head of Research Avinash Gorakshakar said.

“The investors are waiting for the September quarter earnings and fear that it may not keep up the expectations, particularly in the auto sector considering weak sales. The earnings will also guide the direction for the markets along with the global developments such as the developments in U.S.-China trade war,” Gorakshakar told BloombergQuint in an interaction.

Commenting on the 50-stock gauge, Gorakshakar said that the index may not touch 11,200 levels in the near term.

The market breadth, however, was tilted in favour of buyers. About 1,129 stocks advanced and 631 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Realty Index’s 1.8 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 2.6 percent.

MCX

• Stock rose as much as 2.9 percent to Rs 894.
• Trading volume was almost five times its 20-day average.

IndiaMART InterMESH

• Stock rose as much as 2.4 percent to Rs 1,249.90.
• Trading volume was more than four times its 20-day average.

BPCL

• Stock rose as much as 5.9 percent to Rs 385.
• Trading volume was more than four times its 20-day average.

Maharashtra Scooters

• Stock rose as much as 3.2 percent to Rs 3,915.
• Trading volume was more than three times its 20-day average.

Elecon Engineering

• Stock rose as much as 9.9 percent, the most in nearly four months, to Rs 33.30.
• The company received arbitration award against BGR Energy for Rs 37.5 crore. The firm received a nod from NCLT for the award.

Ramkrishna Forgings

• Stock rose as much as 8.7 percent, the most in over two months, to Rs 297.95.
• The North America Class 8 truck orders rose 6 percent on a monthly basis to 10,414 units.

Arvind

• Stock rose as much as 8.9 percent to Rs 50.75.
• Fresh longs seen with high OI of 21 percent.

Dish TV

• Stock rose as much as 14.2 percent to Rs 23.80.
• Trading volume was double its 20-day average.

Indian equity benchmarks were subdued and struggle to recover morning gains.

The S&P BSE Sensex fell 0.2 percent to 36,654 and the NSE Nifty 50 traded little changed at 10,850. The broader markets represented by the NSE Nifty 500 Index rose 0.16 percent.

European stocks followed Asia’s lead, pushing higher on renewed trade optimism as China and the U.S. are set resume talks next month.

Source: Bloomberg

• NCLT approves JSW Steel’ s $2.7 billion bid for Bhushan Power & Steel.
• JSW bid about Rs 19,700 crore, higher than rivals Tata Steel and Liberty House Group.
• Bhushan Power will add 3.5 million tonnes a year capacity to JSW Steel’s operations and expand its footprint to the eastern part of the country where it has no presence.
• Shares of JSW Steel erased gains and fell 0.6 percent. The stock had risen 3.5 percent intraday.

Source: Bloomberg

Indian equity benchmarks struggled to recover and were trading marginally lower.

The S&P BSE Sensex fell 0.35 percent to 36,604 as of 2:05 p.m. and the NSE Nifty 50 fell 0.07 percent to 10,837. The broader markets represented by the NSE Nifty 500 Index rose 0.07 percent.

The market breadth was tilted in favour of buyers. About 1,097 stocks advanced and 612 shares declined on National Stock Exchange.

About 17.3 lakh shares of SBI changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Tata Motors rose as much as 6.2 percent to Rs 116.25.

“Potential postponement of Brexit could be helping Tata Motors perform better than other carmakers,” Bloomberg reported quoting Ambit Capital’s Basudeb Banerjee. “We have been telling our clients that besides Brexit we don’t see any logical downside for Tata Motors below Rs 100,” Banerjee told Bloomberg.

Of the shares traded, 47 percent were at the ask price and 45 percent were at the bid, according to Bloomberg data.

Shares of the oil marketing companies rallied in today’s trade.

Bharat Petroleum Corporation Ltd. rose over 4 percent, while Hindustan Petroleum Corporation Ltd. and Indian Oil Corporation Ltd. rose over 2 percent each.

Indian equity benchmarks erased morning gains and were trading at day’s low.

The S&P BSE Sensex fell 0.36 percent to 36,588 as of noon and the NSE Nifty 50 fell 0.16 percent to 10,827. The broader markets represented by the NSE Nifty 500 Index fell 0.04 percent.

Nine out of 11 sectoral gauges compiled by National Stock Exchange traded higher, led by the NSE Nifty Metal Index’s 2.9 percent gain. On the flipside, the NSE Nifty Realty Index was the top sectoral loser, down 0.73 percent.

Indian equity benchmarks traded higher, led by the gains in Infosys Ltd. and HDFC Bank Ltd.

The S&P BSE Sensex rose 0.38 percent to 36,867 as of 11 a.m. and the NSE Nifty 50 rose 0.57 percent to 10,906. The broader markets represented by the NSE Nifty 500 Index rose 0.58 percent.

Nifty’s 10,900 call 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 84.8 percent to Rs 43.15. Over 2.38 lakh shares were added to the open interest which stood at over 32 lakh shares.

Shares of Oil & Natural Gas Corporation rose as much as 9.2 percent, the most since June 2014, to Rs 129.90.

The stock extended gains for the second consecutive trading session. Trading volume was seven times its 20-day average, Bloomberg data showed.

The stock declined 26 percent in the past 12 months compared to a 3.1 percent fall in the Sensex.

The markets will witness a turnaround only after foreign portfolio investors turn substantial buyers, according to Dimensions Corporate Finance Services’ Managing Director Ajay Srivastava.

“The markets will not witness a turnaround by any upcoming government policies. Besides, domestic investors are already overinvested,” Srivastava told BloombergQuint in an interaction. “The investors need to wait for ‘buying trigger’ by the overseas investors. That will give confidence to rebalance portfolio,” he added.

Srivastava suggested investors to have a large-cap stock in the sectors they are interested and was cautious of mid- and small-cap stocks.

“Mid and small caps are not looking good fundamentally and economically. Investors need to stick to large caps as they are the only ones which will grow,” he said.

Shares of Aavas Financiers rose as much as 8.2 percent, the most since its listing in October 2018, to Rs 1,633.10.

Trading volume was double its 20-day average, Bloomberg data showed. Of the shares traded, 54 percent were at the ask price and 24 percent were at the bid.

The stock has returned 94.6 percent since its listing. The scrip gained over 11 percent in two trading sessions.

Shares of Aditya Birla Capital rose as much as 2.2 percent to Rs 92.40.

The company’s board approved issuing 7.7 crore shares on a preferential basis to Grasim Industries Ltd for Rs 770 crore, according to its stock exchange filing.

The company also plans to issue:

• 2.3 crore shares on a preferential basis worth Rs 230 crore to Surya Kiran Investments Pte. Ltd., IGH Holdings Pvt. Ltd. and Pilanl Investment and Industries Corporation Ltd.
• One crore shares on a preferential basis worth Rs 100 crore to PI Opportunities Fund—I
• One crore shares on a preferential basis worth Rs 100 crore to Jomei Investments Ltd.

Shares of Lakshmi Vilas Bank rose as much as 2.98 percent to Rs 40.50.

About 2.5 percent equity changed hands in a block deal during pre-market trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Of the shares traded, 72 percent were at the ask price and 24 percent were at the bid.

Indian equity benchmarks edged higher in the opening trade, led by the gains in Reliance Industries Ltd. and Infosys Ltd.

The S&P BSE Sensex rose 0.3 percent to 36,843 and the NSE Nifty 50 rose 0.46 percent to 10,895. The broader markets represented by the NSE Nifty 500 rose 0.45 percent.

The market breadth was tilted in favour of buyers. About 844 stocks advanced and 485 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 2.28 percent gain. On the flipside, the NSE Nifty FMCG Index was the top sectoral loser, down 0.1 percent.

September Futures

• Nifty September futures closed at 10,886, premium of 41.7 points versus 38.5 points.
• Nifty futures open interest down 3 percent, sheds 5.9 lakh shares in open interest.
• Bank Nifty September futures closed at 27,219, premium of 95 points versus 49 points.
• Bank Nifty futures open interest down 5 percent, sheds 80,000 shares in open interest.

Options

• Nifty PCR at 1.08 versus 1.03 (across all series).

Nifty Weekly Expiry: Sept. 5

• Max open interest on call side at 11,000 (30.5 lakh shares).
• Max open interest on put side at 10,800 (19.7 lakh shares).
• open interest addition seen at 10,700P (+6.3 lakh shares), 10,800C (+6.2 lakh shares), 10,800P (+5.5 lakh shares).

Nifty Monthly Expiry: Sept. 26

• Max open interest on call side at 11,500 (19.6 lakh shares).
• Max open interest on put side at 10,800 (29.5 lakh shares).

• Usha Martin promoter Rajeev Jhawar acquired 19.2 lakh shares on Sept. 3.
• Cadila Healthcare promoter group Zydus Family Trust acquired 2.5 lakh shares on Sept. 3.
• Vodafone Idea promoters acquired 25 lakh shares from Aug. 29-30.

• Mahindra Lifepsace Developers to meet Grandeur Peak Advisors, Steward Investors and other investors from Sept. 6-13.
• Escorts to meet Matthews International Capital Management on Sept. 9.

The Indian rupee opens higher against the U.S. dollar. The home currency appreciated as much as 0.39 percent to strengthen past 72 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.3 percent to 36,865 during the pre-market and the NSE Nifty 50 rose 0.19 percent to 10,866.80.

• Anant Raj to move into short term ASM Framework.
• 63 Moons Technologies to move out of short term ASM Framework.
• Ramkrishna Forgings price band revised to 10 percent.
• Gallantt Ispat price band revised to 5 percent.

• Affirmed the local and foreign currency deposit ratings of Canara Bank, Oriental Bank of Commerce, Syndicate Bank and Union Bank at ‘Baa3/P-3’.
• Affirmed Baseline Credit Assessments and Adjusted BCAs at ‘ba3’ for Canara Bank, Oriental Bank of Commerce, Syndicate Bank and Union Bank.
• Affirmed the local and foreign currency deposit ratings of Punjab National Bank at ‘Ba1/NP’, and affirmed the bank's BCA and Adjusted BCA at ‘b1’.
• Outlook on Canara Bank, OBC, Syndicate Bank and Union Bank are maintained at stable.
• Changed outlook for Punjab National Bank to ‘Positive’ from ‘Stable’.

• Wipro secured a strategic seven-year contract worth $300 million from ICICI Bank to provide digital services. These services were currently provided by Vara Infotech as part of the strategic engagement. Wipro will absorb about 3,800 employees of Vara lnfotech along with its existing contracts, facilities and assets, on a going concern basis, through a business transfer agreement for an all cash consideration of Rs 321 crore. It will provide these services to ICICI Bank from September onwards.
• NMDC August Production Update: Production fell 3 percent at 1.41 million tonnes versus 1.46 million tonnes . Sales also dropped 36 percent at 1.49 million tonnes versus 2.32 million tonnes.
• Power Grid Corporation declared successful bidder for Transmission work in Madhya Pradesh.
• Equitas Holdings: Equitas Small Finance Bank has sought Reserve Bank of India extension on listing of shares. As per the RBI previous regulations, Sept. 4 was the last day for listing for Equitas Small Finance Bank. The company also stated that the scheme had been filed with RBI and exchanges on Feb. 7. Stock exchanges have in turn forwarded the Scheme to Securities and Exchange Board of India and approval from SEBI is awaited as on date.
• UltraTech Cement: Kailash Chandra Jhanwar appointed as Managing Director of the company. He will replace Krishna Kishore Maheshwari from Jan. 1, 2020.
• Yes Bank and its compliance officer Shivanand Shettigar have settled a case, related to alleged disclosure lapses to the exchanges, with SEBI by paying a total amount of Rs 66 lakh towards settlement charges. (Bloomberg News)
• United Bank of India: Board will not discuss merger with Punjab National Bank on Sept. 6 meeting, to discuss the matter of merger at later date.
• Shankara Building Products: India Ratings and Research has downgraded the company’s Long-Term Issuer Rating to ‘IND A-’ from ‘IND A’, with outlook remaining stable.
• Jammu & Kashmir Bank has postponed its annual general meeting from Sept. 7 to Sept. 26.
• ONGC stated on the fire accident in Uran Processing Unit of the company that Offshore Crude supply has remained unaffected and impact of fire in local vicinity is ‘nil’. The Gas processing was restricted to maintain supplies to internal power generation and to meet the requirements of Mahanagar Gas and remaining gas quantities are diverted to the other processing unit of the Company at Hazira Plant.
• Engineers India has junked its plan to acquire Projects & Development India according to a person aware of the development. The person, on request of anonymity stated some conditions for the acquisition were not met. (Bloomberg News)
• Max India stated that the company and its three arms have filed for the amalgamation scheme with National Company Law Tribunal.
• MCX signed a memorandum of understanding with China’s Zhengzhou Commodity Exchange for cooperation and the exchange of information. Prithvi Haldea resigned from post of Public Interest Director with effect from Sept. 3.
• SREI Infra Finance signed co-operation agreement with Russia’s Quippo and Rosgeo, where all the parties intend to develop cooperation in the fields of land and marine geophysical work in both the countries.
• IFGL Refractories: CARE Ratings has reviewed the short term and long-term ratings worth Rs 167 crore to Issuer Not Cooperating Status.
• Elantas Beck: Company has submitted letter to Gujarat Pollution Control Board on Sept. 2 and it is continuing with production operations normally. On July 3 the Pollution Board issued a revocation order for company’s manufacturing plant in Gujarat.
• Elecon Engineering received arbitration award worth Rs 37.5 crore against BGR Energy as the order was passed by NCLT.
• Hindalco: Deal to buy aluminium maker Aleris Corp faces U.S. regulatory hurdle.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.26 percent to 10,885.50 as of 8:15 a.m.

Asian stocks and U.S. equity futures climbed after China said it will be holding trade talks with American counterparts next month, building on a broad rally in global equities amid an improvement in investor sentiment.

S&P 500 futures extended gains to around 1 percent. Shares in Japan outperformed, and rose in Australia and South Korea. (Get your daily fix of global markets here.)

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