Sensex, Nifty Drop Over 1% A Day Ahead Of F&O Expiry

Indian equity benchmarks ended over a percent lower ahead of F&O expiry tomorrow.

The S&P BSE Sensex fell 1.29 percent or 503.62 points to close at 38,593.52 and the NSE Nifty 50 fell 1.28 percent to end at 11,440.20. The broader markets represented by the NSE Nifty 500 Index fell 1.38 percent.

The markets could witness further short covering ahead of F&O expiry, according to Angel Broking.

“Given that the index has rallied very sharply in just two trading sessions, such range bound session should just be seen as a pause within an uptrend. Hence, traders are advised not to take any contra trades in anticipation of any reversal,” the homegrown brokerage said in a note.

The market breadth was tilted in favour of sellers. About 1,269 stocks declined and 515 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 5.6 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.27 percent.

The yield on the 10-year note fell one basis point to 6.77 percent. It fell three basis points intraday.

A drop in crude oil prices and U.S. Treasury yields are likely to support sovereign bonds that have been under pressure on government’s second half borrowing plans.

The administration so far plans to stick to earlier announced borrowing calendar and there has been no decision on the overseas bond sale, a government official told reporters yesterday. Yield on the 10-year note is expected to trade in a range of 6.75-6.80 percent in the day.

Shipping Corporation of India

• Stock rose as much as 8.9 percent to Rs 41.40.
• Government said to plan strategic sale of the company, Bloomberg reported quoting unnamed officials.

DHFL

• Stock rose s much as 9.7 percent to Rs 49.30.
• Lenders said to hold 60 percent stake in upon resolution of debt based on rules approves by SEBI, CNBC-TV18 reported quoting unidentified people.

Gati

• Stock rose as much as 4.9 percent to Rs 56.20.
• Allcargo Logistics is said to be in discussions to acquire stake in the company, Bloomberg reported quoting unnamed sources.

Centum Electronics

• Stock rose as much as 8.9 percent to Rs 456.40.
• The company inaugurated its space facility in Bengaluru with an investment of Rs 50 crore.

Century Plyboard

• Stock rose as much as 3.7 percent to Rs 155.45.
• Trading volume was more than nine times its 20-day average.

Fine Organic Industries

• Stock rose as much as 10.5 percent to Rs 1,789.95.
• Trading volume was more than six times its 20-day average.

ICICI Securities

• Stock fell as much as 8.9 percent to Rs 274.
• Trading volume was more than 8.8 times its 30-day average.

New India Assurance

• Stock fell as much as 6 percent to Rs 99.55.
• Trading volume was more than six times its 20-day average.

Yes Bank Ltd. today said that the lender has received strong interest from multiple foreign, domestic private equity and strategic investors for fund raising, according to its stock exchange filing

“The bank remains firmly on course to raising growth capital subject to the necessary approvals,” the statement added.

Shares of the Mumbai-based lender fell 3.2 percent to Rs 54.20.

Stocks slumped in Europe and Asia while U.S. index futures edged lower as investors weighed the deepening political gridlock in Washington against prospects for reduced trade tension between America and China.

• The Stoxx Europe 600 Index sank 1.2 percent.
• Futures on the S&P 500 Index decreased 0.1 percent.
• South Korea’s Kospi index decreased 1.3 percent.
• The MSCI Emerging Market Index dipped 0.8 percent.

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Source: Bloomberg

Shares of Power Grid extended gains for the second consecutive trading session. The stock rose as much as 6.4 percent, the most in over five years to Rs 203.40.

Trading in the company's call options totalled 6,359 contracts, compared with the average of 1,000 over the past 20 days, according to Bloomberg data. Trading in the company's put options totalled 1,653 contracts, compared with the average of 466 over the same period.

The Indian rupee traded at day’s low against the U.S. dollar. The home currency depreciated as much as 0.17 percent to 71.13 against the greenback.

Shares of State Bank of India extended opening losses and fell as much as 6.3 percent to Rs 283.50.

International research firm Morgan Stanley downgraded the stock to ‘Equal-weight’ from ‘Overweight’, according to its research report.

Here’s what the broking firm had to say:

• Downgraded to ‘Equal-weight’ from ‘Overweight’; maintained price target at Rs 330
• Downgrade as upside appears limited given uncertainty on asset quality.
• Hike FY21/22 EPS estimates by 5 percent as tax rate cut outweighs lower margins.
• Prefer large private banks where better EPS progression and re-rating is expected.

Shares of Strides Pharma fell as much as 5.7 percent, the most since July 17, to Rs 328, their lowest in over five years.

Strides has received an Information Request today from the U.S. FDA to provide test data on Ranitidine tablets in the next 30 days, according to its statement on the exchanges. “The company is in the process of responding to the IR comprehensively,” the statement added.

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

Indian equity benchmarks continued to trade lower.

The S&P BSE Sensex fell over 500 points to 38,629 as of 1:30 p.m. and the NSE Nifty 50 fell 1.15 percent to 11,454. The broader markets represented by the NSE Nifty 500 Index fell 1.3 percent.

Shares of Bharat Petroleum Corporation Ltd. pared losses and rose as much as 1.6 percent to Rs 468.50.

The government begins strategic sale process in the state-run oil marketer, Bloomberg reported quoting unnamed government official.

The stock advanced 19 percent in the past five days and jumped 38 percent in the past 30 days, according to Bloomberg data.

Shares of IndiaMART InterMESH extended gains for the third consecutive trading session. The stock rose as much as 6 percent to hit an all-time high at Rs 1,970.

The relative strength index was above 70, indicating that the stock may be overbought. The stock advanced 46 percent since its listing on July 4.

Varun Beverages

• Stock fell as much as 3.8 percent to Rs 633.05.
• Trading volume was more than 110 times its 20-day average.

AU Small Finance Bank

• Stock fell as much as 8.3 percent to Rs 614.80.
• Trading volume was more than 80 times its 20-day average.

Fine Organic Industries

• Stock rose as much as 10.5 percent to Rs 1,789.95.
• Trading volume was more than 30 times its 20-day average.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.78 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.33 percent.

Indian equity benchmarks are trading near day’s low.

The S&P BSE Sensex fell 0.9 percent to 38,745 as of 11 a.m. and the NSE Nifty 50 fell 0.88 percent to 11,482. The broader markets represented by the NSE Nifty 500 Index fell 0.9 percent.

The markets could witness further covering of shorts in the last two sessions of September series ahead of F&O expiry, according to Angel Broking.

“Given that the index has rallied very sharply in just two trading sessions, such range bound session should just be seen as a pause within an uptrend. Hence, traders are advised not to take any contra trades in anticipation of any reversal, the homegrown brokerage said in a note.

The Nifty sees initial support at 11,539 intraday, followed Monday's gap area of 11,470-11,380, it saind adding that 11,655-11,700 is seen as the immediate hurdle on the upside, it added.

Shares of RPP Infra Projects rose as much as 4.99 percent to Rs 109.40.

The company’s JV received road construction order in Myanmar worth Rs 414 crore.

Trading volume was almost seven times its 20-day average, Bloomberg data showed. Of the shares traded, 40 percent were at the ask price and 28 percent were at the bid.

Nifty’s 11,500 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Thursday, jumped 104.17 percent to Rs 49.00. Over 1.02 lakh shares were removed from the open interest which stood at over 33.95 lakh shares.

Shares of Varun Beverages erased opening gains and fell as much as 3.4 percent to Rs 618.

About 16.3 lakh shares of the company changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Besides, brokerage and research firm CLSA hiked price target to Rs 860 from Rs 783, implying a potential upside of 34.4 percent from the last regular trade.

Here’s what CLSA had to say:

• Maintained ‘Buy’; hiked price target to Rs 860 from Rs 783.
• Focus shifts from territory consolidation to improving return ratios.
• Expect growth to remain strong as mgmt. will focus on market share gains.
• Hike EPS by 9-14 percent to factor in strong second quarter and lower tax rates.

Indian equity benchmarks extended opening losses.

The S&P BSE Sensex fell 0.74 percent to 38,808 as of 10 a.m. and the NSE Nifty 50 fell 0.69 percent to 11,508.65. The broader markets represented by the NSE Nifty 500 Index fell 0.65 percent.

Shares of Kaveri Seed rose as much as rose as much as 4.9 percent to Rs 575.

The hybrid seeds producer’s board approved share buyback of up to 28 lakh shares, or 4.44 percent of equity shares aggregating to Rs 196 crore, according to its statement on the exchanges. The buyback price is set at Rs 700 per share, which is at 28 percent premium to yesterday’s closing price.

The promoters intend to participate in the proposed share buyback and they have 55.09 percent stake in the company.

Trading volume as more than 30 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

Shares of the budget carrier rose as much as 2.9 percent to Rs 134.30.

SpiceJet is weighing an order for at least 100 Airbus planes as Boeing Co. grapples with the fallout over its grounded 737 Max, according to Bloomberg report. The company may buy a “sizable” number of Airbus A321LR and XLR jets to accommodate a planned expansion, the reported added quoting SpiceJet Chairman Ajay Singh.

Trading volume was almost 19 times its 20-day average, Bloomberg data showed. The stock traded at 26 times its estimated earnings per share for the coming year.

Shares of the country’s largest state-run lender fell as much as 3.3 percent to Rs 292.60.

This after international research firm Morgan Stanley downgraded the stock to ‘Equal-weight’ from ‘Overweight’, according to its research report.

Here’s what the broking firm had to say:

• Downgraded to ‘Equal-weight’ from ‘Overweight’; maintained price target at Rs 330
• Downgrade as upside appears limited given uncertainty on asset quality.
• Hike FY21/22 EPS estimates by 5 percent as tax rate cut outweighs lower margins.
• Prefer large private banks where better EPS progression and re-rating is expected.

The NSE Nifty Bank Index fell for the second consecutive trading session and fell as much as 1.4 percent to 29,765.45.

The declines were led by State Bank of India and Axis Bank Ltd.

Indian equity benchmarks opened lower, led by the declines in HDFC twins.

The S&P BSE Sensex fell 0.5 percent to 38,900 as of 9:17 a.m. and the NSE Nifty 50 fell 0.53 percent to 11,525. The broader markets represented by the NSE Nifty 500 Index fell 0.54 percent.

The market breadth was tilted in favour of sellers. About 818 stocks declined and 609 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 1.5 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.28 percent.

The 10-year yield fell as much as three basis points to 6.75 percent.

A drop in crude oil prices and U.S. Treasury yields are likely to support sovereign bonds that have been under pressure on government’s second half borrowing plans.

The administration so far plans to stick to earlier announced borrowing calendar and there has been no decision on the overseas bond sale, a government official told reporters yesterday. Yield on the 10-year note is expected to trade in a range of 6.75-6.80 percent in the day.

Futures

• Nifty September futures closed at 11,613.8, premium of 25.8 points versus 7 points.
• Nifty futures open interest across series down 2.5 percent, sheds 5.5 lakh shares in open interest.
• Bank Nifty September futures closed at 30,250, premium of 67 points versus discount of 26.6 points.
• Bank Nifty futures open interest across series down 4 percent, sheds 68k shares in open interest.
• Nifty Rollover at 38 percent, Bank Nifty Rollover at 35 percent.

Options

• Nifty PCR at 1.43 versus 1.50 (across all series).

Nifty Monthly Expiry: Sept. 26

• Max open interest on call side at 11,700 (27.4 lakh shares).
• Max open interest on put side at 11,500 (34.9 lakh shares).
• open interest addition seen at 11,500P (+8.8 lakh shares), 11,700C (+6.5 lakh shares), 11,600P (+4.7 lakh shares).

• Granules India to meet Fidelity International, Polunin Capital and other investors on Sept. 25
• Sundaram Fasteners to meet Carnelian Capital Advisors on Sept. 25.
• Nocil to meet Edelweiss Financial Services on Sept. 25.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.12 percent to 71.10 against the greenback.

Asian markets are trading in the red with concerns on U.S.-China trade war. Traders see the pair in a range of 70.80-71.35 a dollar.

Indian equity indices are set for a tepid start.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,093 and 11,588 during the pre-market trade.

• HEG promoter RSWM sold 29,000 shares on Sept. 20.
• Vakrangee promoter & director Dinesh Nanadwana acquired 13.5 lakh shares on Sept. 24.
• Anant Raj promoter Amar Sarin acquired 1.24 lakh shares on Sept. 23.
• Tourism Finance Corporation promoter Redkite Capital sold 1.15 lakh shares from Sept. 20-23.
• Apollo Tricoat Tubes promoter Saket Agarwal sold 1 lakh shares on Sept. 23.

Indian equity markets are expected to touch new highs before the bi-monthly monetary policy due in October.

That’s according to Avendus Capital Alternate Strategies’ Andrew Holland. “We're not near the highs yet, but we will quickly get there,” he told BloombergQuint in an interaction.

“The market is expecting more positive news on personal tax front and capital gains tax and will try to hit new highs within next couple of weeks,” Holland added.

Read and watch the full conversation here.

• State-owned Indian Railway Catering and Tourism Corp.’s Rs 645.12 crore IPO opens on Sept 30 and closes on Oct. 3. The price band is set at Rs 315-320 apiece.

• SpiceJet is weighing an order for at least 100 Airbus planes as Boeing Co. grapples with the fallout over its grounded 737 Max, according to Bloomberg report. The company may buy a “sizable” number of Airbus A321LR and XLR jets to accommodate a planned expansion, the reported added quoting SpiceJet Chairman Ajay Singh.
• Kaveri Seed: Board approved share buyback of up to 28 lakh shares, or 4.44 percent of equity shares aggregating to Rs 196 crore. The buyback price is set at Rs 700 per share, which is at 28 percent premium to yesterday’s closing price. The promoters intend to participate in the proposed share buyback and they have 55.09 percent stake in the company.
• Zee Entertainment Enterprises: IDBI Trusteeship Services invoked pledge of 1 crore share, or 1.04 percent stake from Sept. 19-24. IDBI Trusteeship Services acted as debenture trustee for non-convertible debentures issued by Edinson Infrapower & Multiventures, Konti Infrapower & Multiventures, Pan India Network Infravest and Pan India Utilities Distribution.
• Centum Electronics has inaugurated its space facility in Bengaluru with an investment of Rs 50 crore. The company is an electronics industry partner for Indian Space Research Organisation .
• RPP Infra Projects JV received road construction order in Myanmar worth Rs 414 crore.
• Nagarjuna Fertilizers & Chemicals: Registrar of Companies has approved extension of time of holding the annual general meeting till Dec. 25.
• Mindtree: Shareholders approved appointment of Debashis Chatterjee as Chief Executive Officer and Managing Director and AM Naik as non-executive Chairman.
• Aster DM Healthcare has signed lease agreements for two new hospital projects in Bengaluru.
• Bosch has executed a business transfer agreement with Group’s arm Robert Bosch Packaging Technology to sell its packaging machinery business for Rs 144.6 crore. Sale of the aforementioned business to be effective from close of Sept. 30. The board has also decided to close the company’s thermo-technology business.
• GOCL Corporation said that it has fully repaid loan facilities of $300 million availed for the purpose of Houghton International. Company has received no due certificate from the bank which had provided the facility.
• Adani Group Stocks: Bombay High Court will hear on Sept. 30 a petition filed by the Group seeking direction to the GVK Group-run Mumbai International Airport and the aviation ministry to allow buying out minority stake held by South African firm Bidvest in the airport. The suit came up for hearing before a single bench of Justice AK Menon on Tuesday. The court said it would hear arguments for interim relief on Sept. 30. (PTI)
• SBI Life Insurance said that it is committed towards ensuring that company achieves minimum public shareholding norms as per Securities and Exchange Board of India order. Promoters required to a complete a further divestment of only 2.1 percent of the company’s paid-up capital equity share capital on or before Oct. 2, 2020.
• JSW Steel: Harsco signed three multi-year addon contracts for 10-15 years with company for a total value of $75 million, according to Bloomberg report. Besides, the board approved raising up to $400 million via unsecured notes.
• Reliance Communications: Global Cloud Xchange announced that Bill Barney, CEO of Reliance Communications and Chairman & CEO of Global Cloud Xchange has resigned his RCom role to focus full time at the helm of GCX during its corporate restructuring process.
• Future Retail: IDBI Trusteeship Services (acting for EC Holdings, EW Special Opportunities Funds and Edelweiss Commodities Services) acquired 1.31 crore shares. Company has also pledged additional 52.2 lakh shares to the debenture trustee for the benefit of NCD holders.
• Monsanto: Record date for amalgamation of the company with Bayer Cropscience extended to Sept. 30.
• GATI: Goldman Sachs reduced it stake in the company from 7.12 percent to 5.12 percent.
• JSW Steel: Board approved raising up to $400 million via unsecured notes.
• Morepen Laboratories: SEBI has prohibited the company from accessing the capital market and restrained it from dealing in securities in the securities including units of mutual funds for a period of one year. Order to come in force from immediate effect.
• Speciality Restaurants has incorporated a wholly owned arm in the U.S.
• Indiabulls Housing Finance: Ratings on the long-term debt instruments and bank facilities downgraded to CARE AA+ from CARE AAA. Revision due to the continued challenging funding environment for NBFCs and HFCs, with elevated risk aversion among lenders and investors, especially for wholesale lenders with significant exposure to the real estate sector.

• Oil fell on signs Saudi Arabia is making progress in restoring lost output following a drone attack on its facilities.
• The S&P 500 fell the most in a month after it was reported that House Speaker Nancy Pelosi would announce a formal impeachment inquiry of President Donald Trump. The benchmark cut losses earlier in the day after Trump said he would release a complete transcript on Wednesday of his phone call with the Ukrainian president.
• The 10-year Treasury yield hit a two-week low, while the dollar fell to session lows.
• The Stoxx Europe 600 Index ended little changed. The DAX Index dropped 0.3 percent and the FTSE fell 0.5 percent.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.26 percent to 11,601.50 as of 7:35 a.m.

Stocks in Asia fell and government bond yields edged lower as investors assessed the potential impact arising from increased political turmoil in Washington.

Shares were lower in Tokyo, Sydney and Seoul, though losses were smaller than the biggest decline in a month on the S&P 500 overnight.

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