CNBC-TV18 Market Highlights: Sensex ends 166 points lower, Nifty below 11,000; IT, auto stocks drag

Closing Bell: Markets snap 5-day gaining streak to end lower; Nifty below 11,000##Closing Bell: Markets snap 5-day gaining streak to end lower; Nifty below 11,000

- Indian shares snapped 5-day gaining streak to end lower on Thursday after a volatile session dragged by auto and IT sectors. Losses in index heavyweights like Reliance Industries, ITC, Axis Bank, and Maruti pushed the indices lower. 

- The Sensex ended 166 points lower at 37,104, while the broader Nifty50 index lost 55 points to end the day at 10,981. 

- Indiabulls Housing, Ultratech Cement, ICICI Bank, Hindalco, and Sun Pharma were the top gainers on the Nifty50, while YES Bank, Tata Motors, Maruti Suzuki, Axis Bank, and JSW Steel led the losses.

- Sectoral indices were mixed for the day. Nifty Auto fell the most, down 1.8 percent followed by Nifty Realty, down 0.8 percent. Nifty IT and Nifty FMCG also lost over 0.7 percent each. Meanwhile Nifty PSU Bank, Nify Pharma, and Nifty Fin Services ended the day in green.

Auto and metal sectors stand out from a valuation perspective, says V Srivatsa of UTI MF##Auto and metal sectors stand out from a valuation perspective, says V Srivatsa of UTI MF

V Srivatsa, EVP & fund manager at UTI Mutual Fund, shared his views on the fundamentals of the market and shared outlook on specific stocks and sectors. Speaking about the market sentiment, Srivatsa said, “At the current level, whatever negative news that we have seen or sentiments we have seen in the last six months, either in terms of the macro or even in terms of the corporate earnings, my guess is a lot of it is already priced into the stocks. If you look at the last one year, both the Nifty and the midcap indexes have given negative returns. I think a large part of the pain is behind us. So, we may still have 2-3 months or maybe maximum one or two quarter of pain or negative news flow on the macro and the micro side, but a large part of the pain is already reflected in the stock prices.” READ MORE

Emkay sees 25% upside in Varun Beverages. Here's why##Emkay sees 25% upside in Varun Beverages. Here's why

Emkay has maintained a 'buy' rating on Varun Beverages Ltd (VBL) with a long-term target price of Rs 783 with an upside potential of over 25 percent. At 2.34 pm, VBL shares quoted at Rs 606.95 on the NSE, up over 2 percent. In the last one week, the stock has corrected by over 3.25 percent although the midcap stock has returned 16 percent to investors so far this year. The one-year return on the stock is positive at almost 12 percent. READ MORE

Analysis: India’s airlines face a crushing liquidity crunch##Analysis: India’s airlines face a crushing liquidity crunch

As the country deals with a drastic slowdown in consumption, 5 percent GDP growth for the quarter, a falling rupee and minimal capex spending by corporates, India’s airline industry is also facing liquidity challenges. Lending to airlines is severely constrained and the failure of Jet Airways continues to haunt lenders. For banks with an exposure of more than Rs 8,500 crore to Jet Airways, the likelihood of a suitor diminishes each day. Even the most optimistic assessments indicate that they will only be able to recover a miniscule portion of amounts lent. The fact that this is a large airline failure which comes just seven years after Kingfisher airlines where the default is to the tune of Rs 9041 crore only exacerbates the situation. The consequence: banks are negative on the airline sector. Liquidity issues abound. READ MORE

Equitas gives up recovery slips 3% from high point of the day##Equitas gives up recovery slips 3% from high point of the day

HSBC says GDP growth of over 5.7% in FY20 challenging##HSBC says GDP growth of over 5.7% in FY20 challenging

HSBC has downgraded India's economic growth forecast to 5.7 percent in the fiscal year 2019-2020 and 6.4 percent in the FY21 after the nation's first-quarter GDP growth slumped to 5 percent. Pranjul Bhandari, HSBC's chief India economist, said the situation has not really changed in the first two months of the second quarter since last quarter. “When we look at July and August, the next 2 months of the new quarter, things are not vastly improved; there are some improvements in services so Purchasing Managers’ Index (PMI) services is up, bank credit for personal loans is up, some government spending has picked up,” she said. READ MORE

It's time for investors to start looking at key PSU banks, says Quantum Securities' Sanjay Dutt##It's time for investors to start looking at key PSU banks, says Quantum Securities' Sanjay Dutt

Investors should now start looking at key PSU banks that have the potential to grow really big, said Sanjay Dutt, director, Quantum Securities on Thursday. “So the steps taken by the government with regards to PSU banks are more short-term steps but fundamentals changes like the way PSUs lend... there are radical changes happening in the banking system,” he said in an interview with CNBC-TV18. Dutt is of the view that what we are seeing in the market currently is a rebound from an extreme oversold condition, especially in mid and small-cap space. READ MORE

IRB Infra extends gains, trading at day's high##IRB Infra extends gains, trading at day's high

Here's a quick catchup of all the latest market action##Here's a quick catchup of all the latest market action

- Indian markets trade choppy, swinging between gains and losses on Wednesday with Nifty trading around 11,050 and Sensex up around 50 points.

- Auto stocks slipped as investors await a response from government for a stimulus to curb the slowdown in the sector. Tata Motors declined over 4 percent, while TVS Motors Company and Eicher Motors fell over 2 percent each.

- YES Bank was the top loser on both the indices on profit booking after rising over 13 percent in trade yesterday.
 

- Pranjul Bhandari, HSBC's chief India economist, said that India's economic situation has not really changed in the first two months of the second quarter since last quarter.

AT&T deal will mean margin dilution in first two quarters, says Tech Mahindra MD Gurnani##AT&T deal will mean margin dilution in first two quarters, says Tech Mahindra MD Gurnani

CP Gurnani, managing director and CEO of Tech Mahindra, in an interview with CNBC-TV18 on Thursday, said that the multi-year deal with AT&T would mean margin dilution in the first two quarters due to transition costs. The company announced a large multi-year deal with AT&T last week. While the exact size of the deal is not disclosed yet, it is estimated to be at over $1 billion. READ MORE

IndiGo extends gains, hits record high##IndiGo extends gains, hits record high

Motilal Oswal picks these four stocks for September

Here's a quick catchup of all the latest market action##Here's a quick catchup of all the latest market action

- Indian markets trade choppy, swinging between gains and losses on Wednesday with Nifty trading around 11,050 and Sensex up around 50 points.

 
- IT sector declined in intra-day deals on strong rupee with Tech Mahindra and Wipro down over half a percent each. Auto stocks also slipped with Tata Motors down over 3 percent after it reports a 32 percent decline in its August global wholesales data.

- Investors should now start looking at key PSU banks that have the potential to grow really big, Sanjay Dutt, director, Quantum Securities told CNBC-TV18.

- Indiabulls Housing, Ultratech Cements, ICICI Bank, Grasim, and IndusInd Bank were the top Nifty gainers at this hour of trade.

Gold prices continue to fall due to lack of demand##Gold prices continue to fall due to lack of demand

Gold prices in India fell on Wednesday in absence of festive demand despite positive trends in global markets. Global gold prices edged higher supported by concerns over the global economy and the US-China trade war. In New Delhi, gold prices declined by Rs 372 to Rs 38,975 per 10 grams, while silver prices tumbled Rs 1,150 to Rs 48,590 per kilogram, reported PTI. "The festival demand has not picked up yet in the physical market due to higher gold prices," said Tapan Patel, senior commodities analyst at HDFC Securities. READ MORE