Nifty Halts Longest Stretch Of Gains In Nearly Six Months

India’s equity benchmark NSE Nifty 50 halted its five-day gaining streak, its longest in nearly six months.

The 50-stock index ended 0.48 percent lower to close below 11,000.

Besides, the S&P BSE Sensex halted to three-day gaining streak to close 0.45 percent lower at 37,104.25. The broader markets represented by the NSE Nifty 500 Index ended 0.37 percent lower.

The markets are expected to undergo a consolidation phase with the increasing volatility, according to ICICI Securities.

“Heightened concerns over new tariff imposition by U.S. on China and general global growth slowdown added to the domestic slowdown worries that hampered investors’ sentiment,” the brokerage firm said in a note on Sept. 11.

In the latest update, President Donald Trump said he will delay the next U.S. tariff increase on China by about two weeks.

The market breadth, however, was tilted in favour of buyers. About 975 stocks advanced and 828 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Auto Index’s 1.8 percent fall. On the flipside, the NSE Nifty Financial Services Index was the top sectoral gainer, up 0.24 percent.

The yield on the 10-year note fell to its day’s low. It declined four basis points 6.64 percent.

Sovereign bond traders are awaiting the release of data on consumer price inflation and industrial production, which may have a bearing the central bank’s rate decision next month.

CPI probably rose 3.32 percent year on year in August, according to the median estimate in a Bloomberg survey. That’s against July’s pace of 3.15 percent. Industrial output production likely expanded 2.3 percent year on year in July, faster than 2 percent seen in June.

The Indian rupee extended gains to trade near day’s high. The home currency appreciated 0.48 percent to 71.32 against the greenback.

The local legal tender had appreciated 0.29 percent intraday.

Dishman Carbogen Amcis

• Stock rose as much as 10.1 percent to Rs 198.
• Received approval from DGCA for Tuberculosis medicine in India.
• Shares extended gains for the eighth consecutive trading session, the longest since its listing in September 2017.

Granules India

• Stock rose as much as 6.7 percent to Rs 105.60.
• The company received EIR for Hyderabad Facility by the U.S. FDA
• Had received one observation during inspection of this facility which manufactures Paracetamol.

Kridhan Infra

• Stock rose as much as 4.8 percent to Rs 9.80.
• Secured orders worth Rs 112 crore for infra work in Bengaluru International Airport

Eris Lifesciences

• Stock rose as much as 13.5 percent to Rs 443.95.
• Trading volume was eight times its 20-day average.

Indian equity benchmarks extended declines to trade near day’s low.

The S&P BSE Sensex fell 0.26 percent to 37,173 as of 3 p.m., falling 270 points from day’s high. The NSE Nifty 50 is set to snap its five-day gaining streak, its longest in nearly six months. The broader markets represented by the NSE Nifty 500 Index fell 0.22 percent.

The market breadth, however, was tilted in favour of buyers. About 1,016 stocks advanced and 769 shares declined on National Stock Exchange.

KPR Mill

• Stock rose as much as 1.5 percent to Rs 558.
• Trading volume was almost 50 times its 20-day average.

SKF India

• Stock rose as much as 1.8 percent to Rs 1,914.
• Trading volume was almost 30 times its 20-day average.

3M India

• Stock fell as much as 0.8 percent to Rs 20,100.
• Trading volume was more than 19 times its 20-day average.

Wockhardt

• Stock rose as much as 18 percent to Rs 343.75.
• Trading volume was more than 15 times its 20-day average.

Shares of Zee Media Corp rose as much as 7.5 percent, the most since Aug. 28, to Rs 11.45.

The company’s Chief Financial Officer Sumit Kapoor resigned to pursue interest outside the company with effect from close of business on Sept. 13, according to its stock exchange filing.

Of the shares traded, 67 percent were at the ask price and 30 percent were at the bid, Bloomberg data showed.

Shares of Granules India rose as much as 6.7 percent to Rs 105.60.

The U.S. FDA has issued Establishment Inspection Report (EIR) for the company’s Bonthapally facility in Hyderabad, the drugmaker said in a statement on the exchanges. “The plant was inspected by US FDA in July 2019 and there was one observation during the inspection,” it added.

The stock advanced 11 percent in the past five days and gained 5.1 percent in the past 30 days, according to Bloomberg data.

Stocks climbed on Thursday as signs of goodwill in the trade war boosted risk appetite and investors counted down to a meeting of the European Central Bank.

• Futures on the S&P 500 Index increased 0.2 percent as of 9:21 a.m. London time.
• The Stoxx Europe 600 Index climbed 0.1 percent.
• The Shanghai Composite Index advanced 0.7 percent.
• The MSCI Emerging Market Index gained 0.5 percent.

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Indian equity benchmarks were trading at day’s low, led by the declines in Reliance Industries Ltd. and Tata Consultancy Services Ltd.

The S&P BSE Sensex fell 0.12 percent to 37,231.67 as of 2 p.m., falling 246 points form day’s high. The NSE Nifty 50 fell 0.16 percent to 11,017.10. The broader markets represented by the NSE Nifty 500 Index fell 0.1 percent.

The market breadth, however, was tilted in favour of buyers. About 1,003 stocks advanced and 746 shares declined on National Stock Exchange.

Shares of the oil marketing companies erased opening gains.

The after the oil pared overnight losses stemming from signs there could be a thaw in U.S-Iran relations following John Bolton’s departure.

Asia’s crude benchmark—Brent crude gained 0.43 percent to $61.07 a barrel. It had ended 2.52 percent lower yesterday.

Shares of Kridhan Infra extended gains for the fifth consecutive trading session. The stock hit an upper circuit of 5 percent at Rs 9.85 on BSE.

The company has secured an order worth Rs 112 crore for widening of Trumpet from two lanes to four lanes from Bengaluru City to Airport and back and other associated infrastructure work for Bengaluru International Airport, the infrastructure firm said in a stock exchange filing.

The stock advanced 21 percent in the past five days and fell 3.9 percent in the past 30 days, according to Bloomberg data.

Indian equity benchmarks regained momentum after erasing opening gains.

The S&P BSE Sensex rose 0.2 percent to 37,345 as of 12:50 p.m. and the NSE Nifty 50 rose 0.15 percent to 11,053. The broader market represented by the NSE Nifty 500 Index rose 0.24 percent.

Shares of GMR infrastructure fell as much as 2.7 percent to Rs 16.45.

Abut 2.05 crore shares of the company hanged hands in five large trades, Bloomberg data showed. Buyers and sellers were not known immediately.

Of the shares traded, 50 percent were at the ask price and 34 percent were at the bid, according to Bloomberg data.

Shares of SREI Infrastructure Finance fell as much as 11.4 percent, the most since July 30, to Rs 11.70.

Brickworks Ratings downgraded the company’s instruments worth Rs 5,327 crore. Non-convertible debentures downgraded to ‘BWR A+’ from ‘BWR AA’, with outlook remaining negative. Perpetual Debt downgraded to ‘BWR BBB+’ from ‘BWRA+’, with outlook remaining negative. Commercial Paper downgraded to ‘BWR A1’ from ‘BWR A1+’.

The stock declined 75 percent in the past 12 months compared to 1.1 percent fall in the Sensex.

Shares of Dishman Carbogen Amcis rose as much as 10.2 percent to Rs 198.

The company received an approval from Drug Controller General of India for MDR Tuberculosis (TB) Medicine Bedaquiline Fumarate for production in India, according to its statement on the exchanges.

Trading volume was almost five times its 20-day average, Bloomberg data showed. The stock traded at 11 times its estimated earnings per share for the coming year.

It is too early to comment that the markets are turning in favour of investors, according to Valentis Advisors’ Fund Manager Daljeet Singh Kohli.

“The recovery in market is good. However, it is difficult to say that the movement has turned the tide at present. There are a lot of structural and fundamental changes required as markets are ultimately ‘the slave’ of earnings,” Kohli told BloombergQuint in an interaction.

Kohli foresees more earnings pain in September quarter than what was witnessed in the previous quarter.

Indian equity benchmarks erased gains led by the declines in Reliance Industries Ltd. and Axis Bank Ltd.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 37,257 and 11,027 respectively as of 11:15 a.m. The broader markets represented by the NSE Nifty 500 Index too traded flat.

Seven out of 11 sectoral gauges compiled by National Stock Exchange traded higher, led by the NSEE Nifty PSU Bank Index’s 0.98 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.77 percent.

Indian equity benchmarks were trading near day’s low. The gains in the bechmark led by the gains in ICICI Bank Ltd. and HDFC Ltd.

The S&P BSE Sensex rose 0.17 percent to 37,335 as of 11 a.m. and the NSE Nifty 50 rose 0.1 percent to 11,044.50. The broader markets represented by the NSE Nifty 500 Index rose 0.2 percent.

Shares of Walchandnagar Industries hit their upper circuit of 20 percent at Rs 72.15 on Bombay Stock Exchange.

The company has entered into an agreement with Indian Space Research Organisation to supply equipment for GSLV Launch Vehicle for a contract value of Rs 77.2 crore, according to its stock exchange filing.

Trading volume was 20 times its 20-day average, Bloomberg data showed. Of the shares traded, 46 percent were at the ask price and 25 percent were at the bid.

The yield on the 10-year note fluctuated between gains and losses to trade little changed at 6.68 percent. It rose over 12 basis points so far this month.

Sovereign bond traders are awaiting the release of data on consumer price inflation and industrial production, which may have a bearing the central bank’s rate decision next month.

CPI probably rose 3.32 percent year on year in August, according to the median estimate in a Bloomberg survey. That’s against July’s pace of 3.15 percent. Industrial output production likely expanded 2.3 percent year on year in July, faster than 2 percent seen in June.

Shares of Wockhardt extended gains for the fifth consecutive trading session, their longest gaining streak in nearly three months. The stock rose as much as 16.8 percent to Rs 340.

Trading volume was more than 40 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

The stock advanced 44 percent in the past five days and returned 14 percent in the past 30 days, according to Bloomberg data.

Nifty’s 11,000 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, fell 25.83 percent to Rs 8.90. Over 19.84 lakh shares were added to the open interest which stood at over 37.89 lakh shares.

About 50 lakh shares of Future Retail changed hands during pre-market trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Alkem Laboratories fluctuated between gains and losses to trade 0.8 percent higher at Rs 1,861.95.

The pharmaceutical company received four Form 483 observations from the U.S. Food and Drug Administration for its manufacturing facility in St.Louis, U.S. The company said that the inspection has been closed by the U.S. FDA now.

Of the shares traded, 49 percent were at the ask price and 42 percent were at the bid, according to Bloomberg data.

Shares of SBI Life Insurance Company fell as much as 1.8 percent to Rs 785.10.

SBI’s board has approved an offer-for-sale of at least 3.5 percent stake—or 3.5 crore shares—in SBI Life Insurance Company Ltd., with an option of oversubscription of 1 percent.

The floor price for the sale has been set at Rs 770 per share—a discount of 4 percent to yesterday’s closing price of Rs 799.65—the life insurer said in a separate filing. The sale for institutional investors will take place on Sept. 12 and retail investors on Sept. 13.

Trading volume was 12 times its 20-day average, Bloomberg data showed. The stock traded at 54 times its estimated earnings per share for the coming year.

Shares of Apollo Hospitals Enterprise rose as much as 5.9 percent to Rs 1,579.70.

About 50 lakh shares or 3.6 percent equity changed hands in a large trade, Bloomberg data showed. While buyers and sellers were not known immediately, Apollo Hospitals’ Founder Sunitha Reddy planned to sell 50 lakh shares up to Rs 725 crore, Bloomberg reported quoting the terms of sale it obtained. The floor price was set at Rs 1,450 per share, a discount of 3.2 percent from yesterday’s close.

The stock is current trading ex-dividend. Trading volume was more than 18 times its 20-day average, according to Bloomberg data.

Indian equity benchmarks opened higher in today’s trade, led by the gains in ICICI Bank Ltd. and HDFC Ltd.

The S&P BSE Sensex rose 0.3 percent to 37,373 and the NSE Nifty 50 rose 0.32 percent to 11,071. The broader markets represented by the NSE Nifty 500 Index rose 0.4 percent.

The market breadth was tilted in favour of buyers. About 1,055 stocks advanced and 410 shares declined on National Stock Exchange.

September Futures

• Nifty Sep futures closed at 11,060.8, premium of 25 points versus 22 points.
• Nifty futures open interest up 0.1 percent, adds 9,000 shares in open interest.
• Bank Nifty Sep futures closed at 27,830, premium of 54 points versus 47 points.
• Bank Nifty futures open interest up 3 percent, adds 50,000 shares in open interest.

Options

• Nifty PCR at 1.32 versus 1.41 (across all series).

Nifty Weekly Expiry: Sept. 12

• Max open interest on call side at 11,200 (20 lakh shares).
• Max open interest on put side at 10,900 (28.8 lakh shares).
• Open interest addition seen at 11,000P (+10.5 lakh shares), 11,050C (+6.4 lakh shares).
• Open interest shedding seen at 10700P (-4 lakh shares), 11,000C (-3 lakh shares).

Nifty Monthly Expiry: Sept. 26

• Max open interest on call side at 11,500 (20.8 lakh shares).
• Max open interest on put side at 10,800 (28.6 lakh shares).

• Hind Rectifiers to meet AM Investments and I-Wealth Management on Sept. 12
• CG Consumer Electricals to meet Genesis Investment Management on Sept. 20.
• Sudarshan Chemical to meet Motilal Oswal Securities on Sept. 16.

The markets are expected to undergo a consolidation phase with the increasing volatility, according to ICICI Securities.

“Heightened concerns over new tariff imposition by U.S. on China and general global growth slowdown added to the domestic slowdown worries that hampered investors’ sentiment,” the brokerage firm said in a note on Sept. 11.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.37 percent to 71.4 against the greenback.

Indian equity benchmarks are set to open higher in today’s trade.

The S&P BSE Sensex rose 0.5 percent to 37,437 during the pre-market and the NSE Nifty 50 rose 0.26 percent to 11,065.

• Rajratan Global Wires record date for bonus issue at 4:3.
• Balkrishna Paper Mills, GTN Industries, Indiamart Intermesh to move into short term ASM Framework.
• Goa Carbon, Somany Ceramics price band revised to 10 percent.
• Williamson Magor, Patel Engineering price band revised to 5 percent.

• Arvind promoter Aura Business acquired 4.2 lakh shares on Sept. 6.
• Panama Petrochem promoter group Ittefaq Ice & Cold Storage acquired 47,000 shares on Sept. 9.
• KEC International promoter RPG Venture acquired 69,000 shares on Sept. 9.

• 5:30 p.m.: India Aug. Consumer Price Inflation YoY; Bloomberg estimate 3.35 percent (prior 3.15 percent)
• 5:30 p.m.: India July Industrial Production YoY; Bloomberg estimate 2.5 percent (prior 2.0 percent)

• SBI Life Insurance: SBI’s board has approved an offer-for-sale of at least 3.5 percent stake—or 3.5 crore shares—in SBI Life Insurance Company Ltd., with an option of oversubscription of 1 percent. The floor price for the sale has been set at Rs 770 per share—a discount of 4 percent to today’s closing price of Rs 799.65—the life insurer said in a separate filing. The sale for institutional investors will take place on Sept. 12 and retail investors on Sept. 13.
• Alkem Laboratories received four Form 483 observations from the U.S. Food and Drug Administration for its manufacturing facility in St.Louis, U.S. The company said that the inspection has been closed by U.S. FDA now.
• Apollo Hospitals founder Sunitha Reddy to sell 50 lakh shares up to Rs 725 crore. Floor price is set at Rs 1,450 per share, which is at discount of 3.2 percent as per current market prices, according to Bloomberg report.
• MSTC: Adani Group has appointed the company as selling agent to sell all surplus inventory and equipment for the entire Group.
• Globus Spirits: Promoters have deferred company’s convertible warrants allotment plan. The promoters plan to consider subscription of the warrants at a later stage and the company will seek for fresh special resolution from shareholders.
• HDFC has proposed to raise up to Rs 5,000 crore via issue of bonds.
• Reliance Capital to exercise the over-subscription option 3.15 percent stake sale, in addition to the base sale of 3.15 percent of equity shares, aggregating to 6.3 percent of Reliance Nippon Life Asset Management.
• Texmaco Rail & Engineering: Board to consider various matters regarding the rights issue on Sept. 13.
• SREI Infra Finance: Brickworks Ratings downgraded instruments worth Rs 5,327 crore. Non-convertible debentures downgraded to ‘BWR A+’ from ‘BWR AA’, with outlook remaining negative. Perpetual Debt downgraded to ‘BWR BBB+’ from ‘BWRA+’, with outlook remaining negative. Commercial Paper downgraded to ‘BWR A1’ from ‘BWR A1+’.
• Walchandnagar Industries has entered into an agreement with Indian Space Research Organisation to supply equipment for GSLV Launch Vehicle for a contract value of Rs 77.2 crore.
• Central Bank of India: Tribunal has set aside Securities and Exchange Board of India’s monetary penalty order of Rs 3 lakh for violations of Debenture Trustee regulations.
• Kridhan Infra’s arm secured infra orders worth Rs 112 crore for Bengaluru International Airport.
• OnMobile Global said that it has dissolved its Romanian unit with effect from Sept. 4.
• Allahabad Bank to consider amalgamation of the Bank with Indian Bank on Sept.16.
• Andhra Bank to consider merger proposal with Union Bank and Corporation Bank on Sept. 13.
• Reliance Nippon AMC: Shares offered by Reliance Capital received a demand of 1.32 times from the non-retail category on day one. The offer for sale will open today for retail category

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 11,070 as of 8:10 a.m.

U.S. equity futures and Asian stocks rose, along with the yuan, after President Donald Trump said he will delay the next U.S. tariff increase on China by about two weeks.

Shares rose in Tokyo, Hong Kong and Sydney on the boost to sentiment as investors awaited a potentially pivotal European Central Bank policy meeting.

Earlier, the S&P 500 climbed to the highest since July as tech and healthcare shares gained, with the recent trend of rotation to value from momentum stocks easing.

Oil pared overnight losses stemming from signs there could be a thaw in U.S-Iran relations following John Bolton’s departure.

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