Sensex, Nifty Resume Declines After One-Day Rally

Indian equity benchmarks resumed declines after rallying yesterday, led by the fall in private lenders—HDFC Bank ltd. ICICI Bank Ltd. and IndusInd Bank Ltd.

The S&P BSE Sensex fell 0.78 percent to close at 37,880 and the NSE Nifty 50 declined 0.7 percent to end at 11,234.55. The broader markets represented by the NSE Nifty 500 Index fell 0.71 percent.

The market breadth was tilted in favour of sellers. About 1,141 stocks declined and 639 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 3 percent fall.

Dr. Lal Pathlabs

• Stock rose as much as 7.8 percent to Rs 1,423.
• UBS hiked price target to 1,660.
• Transformers & Rectifiers
• Stock rose as much as 21.3 percent to Rs 8.37.
• Received orders worth Rs 126 crore from Power Grid Corporation.
• Order book as on date stands at Rs 1,001 crore.

Indoco Remedies

• Stock rose as much as 5 percent to Rs 146.10.
• About 12.8 lakh shares exchanged in a large trade.

Wockhardt

• Shares halt nine-day losing streak.
• Trading volume was three times its 20 average.

Indian equity indices are set to resume declines after rallying in yesterday’s trade.

The S&P BSE Sensex fell 0.8 percent to 37,845 as of 3 p.m. and the NSE Nifty 50 fell 08 percent to 11,222. The broader markets represented by the NSE Nifty 500 Index fell 0.79 percent.

Cochin Shipyard

• Stock rose as much as 1.6 percent to Rs 330.15.
• Trading volume was almost 11 times its 20-day average.

Gulf Oil Lubricants

• Stock fell as much as 0.9 percent to Rs 849.
• Trading volume was more than 13 times its 20-day average.

Torrent Pharma

• Stock fell as much as 6.7 percent to Rs 1,705.
• Trading volume was almost 11 times its 20-day average.

About 42 lakh shares of SBI Life Insurance changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of IndusInd Bank fell as much as 3.9 percent to Rs 1,321 after the company announced its September quarter results.

Key Earnings Highlights (Q2, YoY)

• Net profit at Rs 1,383 crore (Bloomberg estimate at Rs 1,417 crore).
• Net interest income at Rs 2910 crore (Bloomberg estimate at Rs 3,003 crore).
• Provision up 71.3 percent to Rs 737.71 crore. (QoQ).
• Gross NPA at 2.19 percent versus 2.15 percent (QoQ).
• Net NPA at 1.12 percent versus 1.23 percent (QoQ).

Indian equity benchmarks traded lower, led by the declines in private lenders—HDFC Bank, Kotak Mahindra Bank and ICICI Bank.

The S&P BSE Sensex fell 0.74 percent to 37,984 as of 2 p.m. and the NSE Nifty 50 fell 0.69 percent to 11,234. The broader markets represented by the NSE Nifty 500 Index fell 0.69 percent.

The market breadth was tilted in favour of sellers. About 1,106 stocks declined and 621 shares advanced on National Stock Exchange.

Shares of Jain Irrigation Systems extended declines for the tenth consecutive trading session, their longest stretch of losses in nearly eight years.

The stock fell as much as 18 percent to Rs 13.20, their lowest since June 2004.

Trading volume was six times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be overbought.

Shares of Bandhan Bank extended gains for the second consecutive trading session. The stock rose as much as 6.3 percent to Rs 511.

The scrip returned 35.2 percent since its listing on March 26, 2018. Trading volume was more than double its 20-day average, Bloomberg data showed.

Shares of Wockhardt halted their nine-day losing streak, their longest stretch of losses in over six years. The stock rose as much as 9.5 percent to Rs 260.55.

Of the shares traded, 45 percent were at the ask price and 38 percent were at the bid, according to Bloomberg data. The stock declined 50 percent in the past 12 months compared to a 9 percent gain in the Sensex.

Yes Bank appointed Anita Pai as Chief Operating Officer Jasneet Bachal as Chief Marketing Officer

Besides, About 18 lakh shares of Yes Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the Mumbai-based lender fell 5.3 percent to Rs 40.95 after falling as much as 6.9 percent earlier.

Indian equity indices extended opening losses to trade at day’s low.

The S&P BSE Sensex fell 0.97 percent to 37,815.61 as of 1 p.m. and the NSE Nifty 50 fell 0.85 percent to 11,217.90. The broader markets represented by the NSE Nifty 500 Index fell 0.82 percent.

U.S. and European stock futures were largely flat after a volatile session in Asia, where contrasting headlines on the chances of progress in critical U.S.-China trade talks roiled equities and currencies.

• Futures on the S&P 500 Index were little changed after dropping as much as 1.3 percent.
• Japan’s Topix Index closed little changed after sliding 1.1 percent earlier.
• Korea’s Kospi Index declined 0.6 percent.
• Shanghai Composite rose 0.6 percent.
• Hang Seng Index rose 0.4 percent.
• Euro Stoxx 50 futures were up 0.2 percent.

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Source: Bloomberg

The NSE Nifty Bank Index traded at day’s low.

The 12-share gauge fell as much as 2.5 percent or 716 points to 28,069.95. The declines were led by Yes Bank Ltd. RBL bank Ltd. and Bank of Baroda.

Indian equity benchmarks traded lower, led by the declines in banks.

The S&P BSE Sensex fell 0.3 percent to 38,060 as of 11 a.m. and the NSE Nifty 50 fell 0.35 percent to 11,273. The broader markets represented by the NSE Nifty 500 Index fell 0.34 percent.

The market breadth was tilted in favour of sellers. About 887 stocks declined and 745 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.85 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, 0.1 percent.

Piramal Enterprises Says:

• There are certain market participants that are spreading false, misleading rumors against the company’s financial services business to create panic among various stakeholders
• Total borrowings in the financial services business at Rs 39,000 crore at present, which is about 75% of the loan book.
• The company repaid debt obligations of Rs 30,000 crore in the past year, of which Rs 5300 crore was repaid in September quarter of the current financial year.
• Company is committed to bring in Rs 8,000-10,000 crore of equity in the financial services business in the current financial year, which would further reduce leverage to less than two times.

Source: Exchange filing

Nifty’s 11,300 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire today, fell 63.06 percent to Rs 18.45. Over 20.82 lakh shares were added to the open interest which stood at over 34.05 lakh shares.

Shares of Aurobindo Pharma resumed declines after a one-day breather. The stock fell as much as 7.9 percent to Rs 436.65.

The company clarified earlier this week that none of the observations that were issued by the U.S. FDA were related to data integrity and the drugmaker said it is confident of addressing them within the stipulated timeline.

Shares of Torrent Pharma fell as much as 6.7 percent, the most since May 21, to Rs 1,555.

The pharmaceutical company received a warning letter from the U.S. drug regulator for its Indrad, Gujarat facility, barring fresh approvals from its largest unit that contributes bulk of its sales in the American market. The warning letter follows the August “official action indicated” by the U.S. Food and Drug Administration, according to the drugmaker’s exchange filing. The status pointed to potential regulatory and administrative action.

Trading volume was almost 40 times its 20-day average, Bloomberg data showed. The stock declined 1.7 percent in the past five days and fell 7.5 percent in the past 30 days

Shares of Indoco Remedies rose as much as 5 percent to Rs 146.10.

About 12.8 lakh shares of the company changed hands in a large deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Of the shares traded, 54 percent were at the ask price and 38 percent were at the bid, according to Bloomberg data.

Indian equity benchmarks resumed declines after a one-day rally.

The S&P BSE Sensex fell 0.36 percent to 38,027 and the NSE Nifty 50 fell 0.3 percent to 11,279.40. The broader markets represented by the NSE Nifty 500 Index fell 0.24 percent.

The market breadth was tilted in favour of sellers. About 787 stocks declined and 671 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.35 percent fall.

Futures

• Nifty October futures closed at 11347.7, premium of 34.4 versus 35.6 points.
• Nifty October futures down 6 percent, sheds 9.7 lakh shares in open interest.
• Nifty Bank futures closed at 28,874, premium of 88 points versus 104 points.
• Nifty Bank October futures open interest down 6 percent, sheds 89,000 shares in open interest.

Options

• Nifty PCR at 1.19 versus 0.95 (across all series).

Nifty Monthly Expiry: Oct. 10

• Max open interest on call side at 11,500 (18.5 lakh shares).
• Max open interest on put side at 11,000 (18.6 lakh shares).
• Open interest addition seen at 11,250P (+10.2 lakh shares), 11,200P (8.7 lakh shares), 11,300P (+8.4 lakh shares).
• Open interest shedding seen at 11200C (-11 lakh shares).

Nifty Monthly Expiry: Oct. 31

• Max open interest on call side at 11,500 (23.9 lakh shares).
• Max open interest on put side at 11,000 (27 lakh shares).

• OCL Iron and Steel to move into ASM Framework.
• Ramky Infrastructure, SMS Lifesciences to move into short term ASM Framework.
• Snowman Logistics, Dai-Ichi Karkaria to move out of short term ASM Framework.
• Shriram EPC, SREI Infrastructure Finance price band revised to 10 percent.

• Magma Fincorp to meet IDFC MF on Oct. 10.
• Emmbi Industries to meet Augmen Catalyst and Phoenix Capital on Oct. 10.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.19 percent to 70.93 against the greenback.

Indian equity benchmarks are set for a subdued start.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,248 and 11,324.90 respectively during the pre-market trade.

• Lakshmi Vilas Bank, Indiabulls Housing Finance: The proposed merger of private sector lender with home financier failed The proposed merger of private sector lender with home financier failed to receive approval from the Reserve Bank of India, the bank said on Wednesday in a statement to stock exchanges.to receive approval from the Reserve Bank of India, the bank said on Wednesday in a statement to stock exchanges.
• Reliance Industries: Forced by regulatory uncertainty over review of sunset clause for call termination charges, Mukesh Ambani's Reliance Jio Infocomm Ltd. on Wednesday announced it will charge customers 6 paise per minute for voice calls made to rival phone networks, but will compensate them by giving free data of equal value. Since voice calls on Jio network are free, the company had to bear the Rs 13,500 crore payment made to rivals Bharti Airtel Ltd. and Vodafone Idea Ltd. To recover losses created by the TRAI move, the company has decided to charge customers 6 paise per minute for every call they make to a rival's network.
• Bharti Airtel has raised $750 million (about Rs 5,330 crore) from investors based in Asia, Europe and the U.S. through a hybrid financial instrument. The proceeds shall be used for refinancing, investments in subsidiaries and general corporate purpose.
• Torrent Pharma: received a warning letter from the U.S. drug regulator for its Indrad, Gujarat facility, barring fresh approvals from its largest unit that contributes bulk of its sales in the American market. The warning letter follows the August “official action indicated” by the U.S. Food and Drug Administration, according to the drugmaker’s exchange filing. The status pointed to potential regulatory and administrative action.
• Indiabulls Housing Finance to consider share buyback plan on Oct. 14.
• Bank of Maharashtra: The RBI has denied the Bank’s request for setting off accumulated losses aggregating to Rs 7,360.29 crore against the balance lying in share premium account and the revenue reserve account of the Bank.
• Reliance Infrastructure has appointed Anmol Ambani and Anshul Ambani as non-executive directors with effect from Oct. 9. Besides, Lt. Gen. Syed Ata Hasnain (Retd) inducted onto the Board as Independent Director.
• Union Bank of India: Board approved preferential issue of equity shares aggregating up to Rs 11,768 crore to the Government of India. Board to approve the new issue price on Oct. 14.
• Ashok Leyland to observe non-working days between 2-15 days in all plants in October.
• Sintex Industries defaulted in payment of interest on non-convertible debentures worth Rs 5.92 crore which were due on Oct. 8.
• DCB Bank revised its Marginal Cost of Funds based Lending Rate across various tenors with effect from Oct. 10. One-month MCLR is at 8.87 percent and one-year MCLR is at 10.47 percent.
• Hester Biosciences said that its Nepal unit’s PRR vaccine has been started to be marketed through Nepal’s distributors and private market channels. The unit has received manufacturing license for the Classical Swine Fever vaccine, for which registration is ongoing in a few South East Asian countries.
• Future Retail to consider raising funds on Oct. 12.
• Indian Overseas Bank fixed Bank’s Repo Linked Rate at Repo Rate plus markup aggregating to 8 percent with effect from Nov 1.
• Coffee Day Enterprises said that promoters hold 25.35 percent stake in the company, out of which 79.94 percent of the promoter’s stake is pledged, which is roughly about 4.28 crore shares.
• Transformers & Rectifiers received orders worth Rs 126 crore from Power Grid Corporation. Order book as on date stands at Rs 1,001 crore.
• Indian Oil Corporation’s Canadian unit has sought requests for proposals from lenders for facility to refinance a loan of Canadian $580 million from 2014, according to Bloomberg report.

Earnings To Watch

• TCS
• IndusInd Bank

• Thursday’s session saw a volatile open, with contracts on the S&P 500 Index down as much as 1.3 percent then paring almost half the loss as traders reacted to conflicting reports on whether negotiations would be cut short to just one day.
• Oil resumed declines after a one-day blip. Brent crude fell 0.53 percent to $58.01 a barrel.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.45 percent to 11,287 as of 8:10 a.m.

Thursday morning was not one for coffee breaks for traders in Asia, with markets whipsawed by contrasting headlines on the chances of some sort of progress in critical U.S.-China trade talks.

Futures on the S&P 500 Index initially fell sharply. Japanese shares also recouped most of their decline, while South Korea were still well down. Hong Kong and Shanghai edged up.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.