Sensex, Nifty End Week On A High Note But Fail To Recoup Losses 

Indian equity benchmarks clocked their best gains of the week. But resumed weekly declines.

The S&P BSE Sensex closed 0.92 percent higher at 36,981.77 and the NSE Nifty 50 closed 0.91 percent higher at 10,946.20. The broader markets represented by the NSE Nifty 500 Index ended 0.84 percent.

This week, the 31-stock index and the 50-share gauge fell 0.94 percent and 0.7 percent respectively. The 500-stock gauge declined 0.6 percent.

“So far, the measures announced have come slightly late, which has led to a loss of confidence in Indian stocks,” Bloomberg reported quoting Deven Choksey of KR Choksey Shares & Securities.

“Investors will be relieved if the government takes more positive measures and removes certain bottlenecks for investments,” Choksey told Bloomberg.

The market breadth was tilted in favour of buyers. About 1,160 stocks advanced and 592 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Metal Index’s 1.9 percent gain. On the flipside, the NSE Nifty Realty Index was the top sectoral loser, down 0.66 percent.

Shares of Info Edge fell as much as 6.9 percent, the most since Aug. 23, to Rs 2,024.15.

The stock snapped its four-day gaining streak, its longest gaining streak since June 25. Info Edge India trades at 66 times its estimated earnings per share for the coming year, according to Bloomberg data.

• Karur Vysya Bank: About 1.08 crore shares changed hands in a block deal.
• Tata Motors: About 15 lakh shares changed hands in a block deal.

Buyers and sellers were not known immediately.
Source: Bloomberg

Indian equity benchmarks are headed for their best day of the week. But, set to set to resume weekly declines.

The S&P BSE Sensex rose 0.76 percent to 36,923 as of 3 p.m. and the NSE Nifty 50 rose 0.72 percent 10,925.30. The broader markets represented by the NSE Nifty 500 Index rose 0.61 percent.

Capacit’e Infraprojects

• Stock rose as much as 9.4 percent to Rs 219.
• Company received contract worth Rs 4502 crore from Maharashtra’s Cidco.

PVR

• Stock rose as much as 5.2 percent.
• Fresh longs seen with high open interest of 20 percent.

Prabhat Dairy

• Stock hit upper circuit of 20 percent
• Company to consider delisting of shares on Sept. 10.
• Promoters intent to acquire 49.9 percent stake from public share holders

REC

• Stock rose as much as 5.2 percent to Rs 150.
• CLSA upgraded the stock rating to ‘Buy’ from ‘Sell’ with a price target at Rs 180.

Elgi Equipments

• Stock rose as much as 2.5 percent to Rs 249.45.
• Trading volume as almost 15 times its 20-day average.

Indiabulls Ventures

• Stock fell as much as 12.1 percent to Rs 167.90.
• Trading volume was almost nine times its 20-day average.

Jyothy Labs

• Stock rose as much as 3.5 percent to Rs 145.05.
• Trading volume was eight times its 20-day average.

AstraZeneca Pharma

• Stock rose as much as 2.9 percent to Rs 2,049.
• Trading volume was almost seven times its 20-day average.

Indian equity benchmarks extended their morning gains to trade at day’s high.

The S&P BSE Sensex rose 0.9 percent to 36,977 as of 2 p.m. and the NSE Nifty 50 rose 0.86 percent to 10,940.85. The broader markets represented by the NSE Nifty 500 Index rose 0.73 percent.

The market breadth was tilted in favour of buyers. About 1,144 stocks advanced and 564 shares declined on National Stock Exchange.

Shares of Capacit’e Infraprojects rose as much as 9.4 percent to Rs 219.

The engineering and construction company won an order from Maharashtra’s Cidco worth Rs 4,502 crore, according to its stock exchange filing.

Of the shares traded, 44 percent were at the ask price and 41 percent were at the bid, Bloomberg data showed.

Shares of IndiaMART InterMESH extended gains for the third consecutive trading session. The stock rose as much as 8 percent, the most in over two months, to Rs 1,335.

The company plans to acquire 26 percent stake in in Simply Vyapar App for Rs 31.2 crore, according to its stock exchange filing on Sept. 3.

The scrip advanced 15.2 percent in six trading sessions and advanced 34 percent since its listing on July 3.

Indian equity benchmarks extended their opening gains to trade at day’s high.

The S&P BSE Sensex rose 0.75 percent to 36,918 as of 1 p.m. and the NSE Nifty 50 rose 0.69 percent to 10,922.60. The broader markets represented by the NSE Nifty 500 Index rose 0.6 percent.

Shares of Bharat Heavy Electricals Ltd. rose 0.49 percent to Rs 51.40.

The state-run company won an order worth Rs 450 for emission control system, according to its stock exchange filing.

The stock traded at 13 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of Infosys extended gains for the third consecutive trading session. The stock rose as much as 1.6 percent to hit a fresh record high at Rs 847.

Brokerage firm ICICI Direct Research, which had recommended ‘Buy’ on the Bengaluru-based software developer at the price of Rs 755, advises investors to book ‘full profits’ at current levels, according to its statement on mail.

The research firm had recommended investors to buy Infosys at Rs 740-755 levels on July 15 with a three-month view. They had a target of Rs 865 with a stop-loss at Rs 685.

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Indian equity benchmarks extended their opening gains to trade at day’s high.

The S&P BSE Sensex rose as much as 0.68 percent to 36,894.64 and the NSE Nifty 50 rose as much as 0.61 percent to 10,914.20. The broader markets represented by the NSE Nifty 500 Index rose as much as 0.53 percent.

About 20.5 lakh shares of City Union Bank changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of InterGlobe Aviation Ltd. could reach Rs 2,080, international broking firm JPMorgan said in a research report. The target price implies a potential upside of 27.5 percent from yesterday’s close. It is the highest price target on the company so far, among the analysts tracked by Bloomberg.

The research company initiated its coverage on the budget carrier to ‘Overweight’ from ‘Neutral’.

Here’s what JPMorgan had to say:

• Structural cost advantage in a highly competitive industry.
• Revenue growth to be driven by internals.
• Expect September quarter to be seasonally weak, providing an opportunity to buy.

Shares of InterGlobe Aviation rose as much as 1.2 percent to Rs 1,652.

Shares of Muthoot Finance fell as much as 5.7 percent, the most since Aug. 13, 2019, to Rs 557, the lowest since May 14, 2019.

“Half of the gold loan provider’s 600 branches in the southern state of Kerala have not been functioning in the last few months due to the protests,” Bloomberg reported quoting IDBI Capital Markets & Securities’ Analyst Neelam Bhatia. “If they actually shut down these branches it would be a huge loss in business,” Bhatia told Bloomberg.

Trading in the company's call options totalled 827 contracts, compared with the average of 425 over the past 20 days, according to Bloomberg data. Trading in the company's put options totalled 1,696 contracts, compared with the average of 358 over the same period, Bloomberg data showed.

Eight out of 11 sectoral gauges compiled by National Stock Exchange traded higher, led by the NSE Nifty Media Index’s 1.15 percent gain. On the flipside, the NSE Nifty Realty Index was the top sectoral loser, down 0.98 percent.

Indian equity benchmarks managed traded higher, led by the gains in Reliance Industries Ltd. and Axis Bank Ltd.

The S&P BSE Sensex rose 0.48 percent to 36,822 as of 11 a.m. and the NSE Nifty 50 rose 0.44 percent to 10,896. The broader markets represented by the NSE Nifty 500 Index rose 0.42 percent.

About 21.5 lakh shares of Cholamandalam Investment & Finance changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of HDFC Life Insurance Co Ltd. rose as much as 1.4 percent to Rs 535.80 and shares of ICICI Prudential Life Insurance Co Ltd. rose as much as 1.9 percent to Rs 434.75.

Besides, shares of SBI Life Insurance Co Ltd. fluctuated between gains and losses to trade 0.17 percent higher at 832.65.

This after the brokerage and research firm HSBC hiked price target of the three insurance companies.

Here’s what the brokerage firm had to say:

• Robust sales and improving product mix.
• Non-par and annuity offerings and competition in protection need to be monitored.
• Expect sales of HDFC Life’s non-par product to moderate.
• HDFC Life: Maintained ‘Hold’; hiked price target to Rs 510 from Rs 484.
• ICICI Prudential: Maintained ‘Buy’; hiked price target to Rs 470 from Rs 460.
• SBI Life: Maintained ‘Buy’; hiked price target to Rs 870 from Rs 826.

Shares of Reliance Industries rose as much as 1.1 percent to Rs 1,211.70.

The company’s subsidiary Reliance Jio Infocomm Ltd. announced tariff plans for its JioFiber broadband service starting at Rs 699 a month.

The stock traded at 16 times its estimated earnings per share for the coming year, according to Bloomberg data. The scrip declined 4.5 percent in the past 12 months compared to a 3.8 percent fall in the Sensex.

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 on Aug. 12, rose 19.86 percent to Rs 49.80. Over 5.27 lakh shares were added to the open interest which stood at over 20.86 lakh shares.

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

The S&P BSE Sensex rose 0.4 percent to 36,791 as of 10:05 a.m. and the NSE Nifty 50 rose 0.34 percent to 10,884. The broader markets represented by the NSE Nifty 500 Index rose 0.3 percent.

Morgan Stanley has lowered its target on Sensex to 40,000 from 45,000 citing weaker global backdrop.

The international research firm also cut its EPS growth for the current financial year to 13 percent from 19 percent, according to its head of India equity research and India equity strategist Ridham Desai’s research note.

“Reflecting a weaker global backdrop as well as growing reflexivity risks from share prices to fundamentals, we cut our earnings estimates for 2019-20 and our Jun-20 index target,” Desai said.

Shares of Indiabulls Housing Finance fell as much as 9.6 percent, the most since Aug. 16, to Rs 405.

The company clarified on the PIL against the company and its Promoter saying that it will fight out the petitioners in the court.

Indiabulls Housing Finance Says:

• Petition hasn’t yet been filed in the High Court as per the website records of Delhi High Court.
• PIL at a sensitive time of merger process of Indiabulls Housing Finance and Laxmi Vilas Bank.
• Company is determined to fight out the petitioners in the court.

Source: Stock Exchange Filing

Shares of Tech Mahindra rose as much as 5.3 percent, the most since Feb. 06, 2019, to Rs 732.55, the highest level since June 24, 2019.

The company has announced a multi-year agreement with AT&T Network, according to its stock exchange filing. “The pact with AT&T will help to accelerate AT&T’s IT network application, shared systems modernization and movement to the cloud,” Tech Mahindra said. The company, however, did not disclose the deal size.

The stock was the best performer on Sensex and Nifty. Of the shares traded, 47 percent were at the ask price and 36 percent were at the bid, Bloomberg data showed.

Shares of Prabhat Dairy hits their upper circuit of 20 percent at Rs 78.15.

The company’s board of directors to consider delisting of shares from the bourses on Sept. 10. The promoters intent to acquire 49.9 percent stake from the public shareholders and then go for voluntary delisting. At present, they hold 50.1 percent stake in the company.

Trading volume was 1,685 times its 20-day average, Bloomberg data showed. The Relative Strength was above 70, indicating that the stock may be overbought.

Indian equity benchmarks opened higher, led by the gains in Infosys Ltd. and Tech Mahindra Ltd.

The S&P BSE Sensex rose 0.45 percent to 36,809 as of 9:17 a.m. and the NSE Nifty 50 rose 0.37 percent to 10,887.10. The broader markets represented by the NSE Nifty 500 Index rose 0.37 percent.

The market breadth was tilted in favour of buyers. About 856 stocks advanced and 467 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 1.35 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.6 percent.

September Futures

• Nifty Sep futures closed at 10,881.6, premium of 33.7 points versus 41.7 points.
• Nifty futures open interest up 2 percent, adds 2.9 lakh shares in open interest.
• Bank Nifty Sep futures closed at 26,994, premium of 74 points versus 95 points.
• Bank Nifty futures open interest up 6 percent, adds 90,000 shares in open interest.

Options

• Nifty PCR at 1.24 versus 1.08 (across all series).

Nifty Weekly Expiry: Sept. 12

• Max open interest on call side at 11,000 (15.5 lakh shares).
• Max open interest on put side at 10,800 (11.7 lakh shares).
• open interest addition seen at 11,200C (+8.1 lakh shares), 10,800P (+7.6 lakh shares), 11,000C (+7.3 lakh shares).

Nifty Monthly Expiry: Sept. 26

• Max open interest on call side at 11,000 (23.4 lakh shares).
• Max open interest on put side at 10,800 (31.8 lakh shares).

• Rico Auto Industries promoters acquired 50,000 shares from Sept. 3-4.
• Anant Raj promoter Anil Sarin acquired 1.3 lakh shares on Aug. 30.
• Tourism Finance Corporation promoter India Opportunities acquired 99,000 shares on Sept. 3.

• Deepak Fertliser & Petrochemicals to meet Bellwether Capital on Sept. 6.
• Eris Lifesciences to meet DSP, Reliance MF and other investors on Sept. 6.
• GSK Pharma to meet Matthews International Capital Management on Sept. 12.
• Shriram City Union Finance to meet Enam Holdings on Sept. 6.
• Sundram Fasteners to meet SBI Cap Securities on Sept. 6.

The Indian rupee opened marginally lower against the U.S. dollar. The home currency depreciated as much as 0.06 percent to 71.89 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.15 percent 36,700 during the pre-market trade and the NSE Nifty 50 rose 0.37 percent to 10,886.75.

• The pound padded Wednesday’s surge after the U.K. Parliament blocked a no-deal Brexit and an early election.
• Oil is on track for a second straight weekly gain, buoyed by a big drawdown in U.S. crude stockpiles and reports that the U.S. and China would hold trade negotiations next month.

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India’s equity benchmark NSE Nifty 50 is likely to continue its sideways journey and may trade in the range of 10,750-11,000, according to Karvy Stock Broking

“Technically supports may be assumed around 10,780-10,800 followed by 10,680-10,700 levels, while resistance may be assumed around 10,950 levels followed by 11,000 levels,” the research firm said in a note.

• Reliance Communications to move into short term ASM Framework.

• Reliance Industries: Reliance Jio has announced the commencement of JioFiber with effect from Sept. 5. Broadband speed to start from 100 Mbps to 1 Gbps. In the welcome officer a Jio Fiber user gets TV, 4K set top box, OTT app subscription n unlimited data and voice/video calling. Monthly prepaid tariffs start from Rs 699 to Rs 8499. For long term plans users will have access to three, six and 12 months with bank tie-up for EMI.
• Sun Pharma clarified that SEBI had ordered forensic audit with respect to financial statements for financial years 2016, 2017 and 2018, which are presently underway. The company said that it has always sought to comply with regulatory obligations.
• Bajaj Finance to consider raising funds via QIP issue on Sept. 17.
• NDTV: Bombay High Court has set aside SEBI’s orders which were passed in August 2017. The company’s writ petition challenged order passed by SEBI in which the authority it rejected settlement applications filed by the company in the alleged delayed disclosure of Rs 450 crore disputed tax demand and other alleged non-disclosures. High Court has condoned delay in filing of the settlement applications and has directed SEBI to decide the said applications on merits.
• Prabhat Dairy: Board of directors to consider delisting of shares from the bourses on Sept. 10. The promoters intent to acquire 49.9 percent stake from the public shareholders and then go for voluntary delisting. At present, they hold 50.1 percent stake in the company.
• Videocon Industries: The National Company Law Tribunal has directed State Bank of India to maintain status quo on its plan to sell upstream oil and gas assets of the Group located in Brazil and Indonesia.
• L&T Finance Holdings: Board to consider raising up to Rs 100 crore via non-convertible preference shares on Sept. 11.
• Bank of Baroda reduced MCLR across various tenors by five basis points with effect from Sept. 7. One Month MCLR at 8.1 percent and One Year MCLR at 8.4 percent.
• TCS has expanded its strategic partnership with Posten Norges AS for solutions in areas of mail, communications and logistics.
• Tech Mahindra has announced a multi-year agreement with AT&T Network.
• Hinduja Global Solutions stated that it has recovered $1 billion in denied insurance payments on behalf of healthcare systems. The company has collected more than $3 billion in accounts receivables so far on behalf of healthcare systems.
• Karur Vyasa Bank revised its MCLR across various tenors with effect from Sept. 7. Base Rate at 9.7 percent, one-month MCLR at 8.35 percent and one-year MCLR at 9.45 percent. Bank has also executed an agreement with ICICI Lombard General Insurance to sell non-life insurance products.
• DHFL defaulted in payment of non-convertible debentures interest worth Rs 1.4 crore which were due between Sept. 3-4.
• NCC: Sundaram Group decreased stake from 5.16 percent to 2.77 percent in the company.
• Datamatics Global Services entered in a strategic partnership with Bangalore International Airport for digital services.
• Maruti Suzuki: European Commission cleared the acquisition of joint control over a newly created plant, by Toyota Tsusho India Pvt. Ltd., its parent Toyota Tsusho Corporation, and Maruti Suzuki India Ltd., according to European Commission’s statement.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.37 percent to 10,903 as of 8:20 a.m.

Stocks in Asia rose after a strong session on Wall Street as a slew of data bolstered confidence in the American economy.

Shares in Hong Kong led the advance, though gains were more modest in Tokyo and Seoul, with the MSCI Asia Pacific Index on course for its biggest weekly rise since June. (Get your daily fix of global markets here.)

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

Source: Bloomberg