CNBC-TV18 Market Highlights: Benchmark equity indices started the September series with strong gains with the Nifty settling above the 11,000 mark. The Sensex also added 263 points. Gains were led by pharma, metal and consumer shares with auto and banks also supporting. Here are the main highlights from the stock markets today:
Closing Bell: Sensex settles 263 points higher, Nifty above 11K##Closing Bell: Sensex settles 263 points higher, Nifty above 11K
The BSE Sensex ended 263 points higher, or 0.71 percent, to close Friday's trade at 37,332. The NSE Nifty50 also jumped 75 points, or 0.68 percent, to 11,023. The Nifty MidCap index outperformed rising 0.95 percent, while all major Nifty sectoral indices ended positive with pharma, metals and FMCG leading. Among gainers, Yes Bank, Sun Pharma, ZEEL, IndusInd Bank and Tata Steel gained between 3 and 5.5 percent. Bharti Infratel, Coal India, Eicher Motors, ONGC and Power Grid shares rose between 1 and 3.5 percent.
Lakshmi Vilas Bank down on fears over proposed merger##Lakshmi Vilas Bank down on fears over proposed merger
Shares of Lakshmi Vilas Bank fell 5 percent to an over 10-year low of Rs 36.50 due to concerns over the lender's merger with Indiabulls Housing Finance. The proposed merger has come under a cloud after Parthasarathi Mukherjee resigned as managing director and chief executive officer of the bank on Wednesday, citing "personal reasons". The agreement to merge the two entities was signed under the stewardship of Mukherjee. So far this month, shares of the lender have fallen over 24 percent.
HDFC up 1.2% as co to sell entire 10% stake in GSTN##HDFC up 1.2% as co to sell entire 10% stake in GSTN
Shares of Housing Development Finance Corp rose 1.2 percent on Friday as the non-bank lender will sell its entire 10 percent stake in Goods & Services Tax Network for Rs 10 million to seven states and the Union Territory of Jammu & Kashmir. The stake sale will be completed by November 10. The sale is in line with the decision made by the GST Council to convert Goods & Service Tax Network into a 100 percent government-owned company, with the Centre holding 50 percent stake and state governments and Union Territories holding the rest. On Thursday, HDFC Bank - subsidiary of Housing Development Finance Corp -also said it will sell its entire 10 percent stake in Goods & Services Tax Network for Rs 10 million to 13 states and Union territories. Goods & Service Tax Network is a non-profit organisation to facilitate the collection of goods and services tax. The company's total revenue in 2017-18 (Apr-Mar) was Rs 1.7 billion.
IndiGo's Damodaran says no probe underway over related-party transactions##IndiGo's Damodaran says no probe underway over related-party transactions
IndiGo chairman M Damodaran, in an interview with CNBC-TV18 on Friday, clarified that there was no investigation by any regulator over related-party transactions.
"We are on our way to peace, there has been a conversation among promoters," he said, adding "the words correspondence and investigation are loosely interchanged by people."
The airline's two promoters Rakesh Gangwal and Rahul Bhatia have been involved in a bitter dispute since nearly a year over disagreements about corporate governance standards and related-party transactions between IndiGo and Bhatia's InterGlobe Enterprises. READ MORE
Market will recover from cyclical slowdown in H2FY20, says Marcellus Investment’s Mukherjea##Market will recover from cyclical slowdown in H2FY20, says Marcellus Investment’s Mukherjea
Saurabh Mukherjea, founder of Marcellus Investment Managers, on Friday, said that the economic slowdown is cyclical and that the market will recover from it in the second half of the current financial year.
“Everybody knows that we will get a weak GDP print and corporate earnings in Q2. So if there is any stoppage in positive announcements from the government of India, the apprehension immediately kicks in and for this slide to be arrested we need the FM to come up with specifics of fiscal boost sooner rather than later,” he said in an interview with CNBC-TV18. READ MORE
Here's a quick wrap up of what has so far happened in the markets today##Here's a quick wrap up of what has so far happened in the markets today
-Domestic equity benchmark BSE Sensex jumped over 200 points and the Nifty reclaimed the 11,000 level in early trade on Friday led by gains in financial and energy stocks amid positive global cues.
-The Sensex has added over 100 points in volatile trade boosted by buying in metal and auto counters. The Nifty traded below the 10900 mark.
-Trade sentiment remaied tepid ahead of the release of the GDP figures after market hours today.
-Adani Green Energy ltd shares surged over 10 percent on Friday, hitting the day’s high at Rs 47.85 per share.
-Gruh Finance shares rallied 8 percent on Friday on a report the country's largest mortgage lender HDFC is likely to sell 9.2 percent in the company for Rs 1,678 crore.
Finance minister likely to announce mega-merger plan for PSU banks today##Finance minister likely to announce mega-merger plan for PSU banks today
Coal India falls 3% as sales in August likely to be weak##Coal India falls 3% as sales in August likely to be weak
Shares of Coal India fell 3 percent as the company's sales are seen weak in August due to poor production and as investors assess the impact of the government's move to allow 100 percent foreign direct investment in commercial mining. Brokerage firm Edelweiss Securities, however, expects the company to meet its production growth target of 4.5 percent in 2019-20 (April-March) driven a spurt in output in October-March. So far today, 5.6 million shares of the company changed hands on the NSE, higher than the daily average trading volumes of 4.3 million shares. At 12.40 pm, shares of the company were down 2.3 percent at Rs 184.5.
Telecom outlook negative: India Ratings##Telecom outlook negative: India Ratings
Credit profiles of telecom operators (telcos) will remain under pressure in the medium term due to intense competition, elevated debt levels and continued reliance on capital infusion for debt servicing and capex, India Ratings, a Fitch Group company has said. Reliance Jio will be the only telco whose market share may increase to 40-45 per cent by 2022, it said. India Ratings and Research (Ind-Ra) has maintained a negative outlook on the telecommunications services sector for the remainder of FY20.
"Competitive intensity in the telecom industry has remained elevated with Reliance Jio Infocomm's (RJio) data tariffs that are 25-30 per cent lower than those of Bharti Airtel Limited (Bharti) and Vodafone-Idea Limited (Voda-Idea)," said the report.
NTPC sinks on plans to enter coal mining business##NTPC sinks on plans to enter coal mining business
Shares of NTPC sank 6 percent after the company said it has incorporated a subsidiary to take up commercial coal mining operations in the country. NTPC's decision comes on the back of the Cabinet approving 100 percent foreign direct investment in the commercial coal mining sector after allowing private participation in coal mining in April 2018. NTPC currently produces coal from 11 coal blocks allocated to it for fuelling its power plants. The company aims to become the second-largest coal producer behind Coal India. Shares of NTPC were down 3.9 percent at Rs 118.35.
NSE co-location case: Sebi absolves 3 former executives, seeks action against 2##NSE co-location case: Sebi absolves 3 former executives, seeks action against 2
Market regulator Securities and Exchange Board of India (Sebi) has let off the hook three former executives of the National Stock Exchange who were accused of failing to ensure equal access for all brokers to the bourse’s network servers. But Sebi has asked the exchange to take action against two others for having shown laxity and dereliction of duty in the so-called co-location case. NSE officials were accused of providing some high-frequency traders unfair access through co-location servers placed at the site of the exchange, which could aid high-speed trading. READ MORE
Nifty Realty on longest gaining spree in 10 months##Nifty Realty on longest gaining spree in 10 months
The Nifty Realty index rose for the sixth straight session on Friday, marking its longest gaining spree in over 10 months, due to hope of further measures from the government to boost the troubled sector. Shares of DLF, Sobha Ltd, Oberoi Realty, Prestige Estate Projects, Indiabulls Real Estate and Godrej Properties gained 0.2-1.2 percent today, taking the Nifty Realty 0.5 percent higher.
Adani Green Energy surges over 10% on acquisition of 10 renewable energy projects##Adani Green Energy surges over 10% on acquisition of 10 renewable energy projects
Adani Green Energy ltd shares surged over 10 percent on Friday, hitting the day’s high at Rs 47.85 per share. The stock gained value after the company announced on Thursday it would acquire ten solar energy assets from Essel Green Energy and Essel Infraprojects for Rs 1,300 crore. The total generating capacity of the energy of the solar energy assets is 205 MW.
“Adani Green Energy has entered into a securities purchase agreement for acquisition of 100 percent equity interest in ten companies… from Essel Green Energy and Essel Infraprojects,” the company said in a BSE filing. READ MORE
Gruh Finance shares rally 8% on report HDFC may sell stake to meet RBI norms##Gruh Finance shares rally 8% on report HDFC may sell stake to meet RBI norms
Gruh Finance shares rallied 8 percent on Friday on a report the country's largest mortgage lender HDFC is likely to sell 9.2 percent in the company for Rs 1,678 crore. As per the Economic Times report, the sale of 67.4 million shares is expected to happen at a floor price of Rs 243 to Rs 249 per share in the open market on Friday. At 09:22 AM, Gruh Finance's shares were trading 4.89 percent higher at Rs 261.80 per share on the NSE. Intraday, the stock rose 8 percent at Rs 269.70. READ MORE
PNC Infratech jumps 4% on project win##PNC Infratech jumps 4% on project win
Shares of PNC Infratech rose 4 percent on Friday after the smallcap engineering company has been declared the lowest bidder for National Highways Authority of India’s project of construction of 31.7 km long four lane bypass connecting NH-56 at km 17.400 and terminating near Behta Village Road under NHDP Phase-VII on EPC mode for a quoted price of Rs 1062 crore.
Tata Steel, Vedanta, JSW Steel were among top Nifty gainers##Tata Steel, Vedanta, JSW Steel were among top Nifty gainers
Bharti Infratel, HCL Technologies were top losers on Nifty in early trade##Bharti Infratel, HCL Technologies were top losers on Nifty in early trade
Opening Bell: Sensex, Nifty start higher on firm Asian cues led by metal, auto, financials##Opening Bell: Sensex, Nifty start higher on firm Asian cues led by metal, auto, financials
The BSE Sensex gained 104 points, or 0.28 percent, to 37,173 in initial trade. The NSE Nifty50 surged 41 points, or 0.37 percent, to trade at 10,989. The Nifty MidCap index also surged 0.40 percent, while the banking gauge, Nifty Bank rose 0.33 percent. Metal, energy, realty and CPSE were among other major sectoral gainers. Among Nifty gainers, Tata Steel, Vedanta, JSW Steel, Hindalco and Indiabulls Housing Finance surged between 1 and 2.5 percent. Bharti Infratel, HCL Technologies, Coal India, BPCL and ONGC were top Nifty losers, falling by up to 1.63 percent. READ MORE
Top brokerage calls for August 30: Morgan Stanley cuts target price of Axis Bank, Citi bullish on Maruti Suzuki##Top brokerage calls for August 30: Morgan Stanley cuts target price of Axis Bank, Citi bullish on Maruti Suzuki
Morgan Stanley on Reliance: The brokerage maintained 'overweight' on Reliance Industries with a price target of Rs 1,349 per share. It said that the recovery in oil-to-chemical business is getting more evident.
CLSA on Autos: CLSA expects auto companies to report weak wholesale volumes for August. It further added that Ashok Leyland, Maruti Suzuki and Tata Motors may report a decline of 24-28 percent.
Rupee opens mildly up against the US dollar at 71.78 on Friday##Rupee opens mildly up against the US dollar at 71.78 on Friday
IL&FS case: Moody's India arm ICRA fires CEO Naresh Takkar with immediate effect##IL&FS case: Moody's India arm ICRA fires CEO Naresh Takkar with immediate effect
The board of rating agency ICRA, an affiliate of Moody's, on Thursday, terminated the services of its managing director and CEO Naresh Takkar, following the appearance of his name in the IL&FS case.
"The board of directors of ICRA Limited, at a meeting today, after due consideration and taking into account the best interests of the company and its various stakeholders, has decided to terminate the employment of Naresh Takkar as managing director and Group CEO of ICRA, effective immediately," ICRA said in a regulatory filing.
The ICRA board will commence the search for a replacement, it said. READ MORE
Chris Wood on government’s economic boosters: Will wait for evidence of a pickup in activity##Chris Wood on government’s economic boosters: Will wait for evidence of a pickup in activity
Christopher Wood, global head of Equity Strategy at Jefferies, in his weekly note 'GREED & fear', has said that although the recent measures announced by the Modi government to revive the economy and the stock market are a positive, he will wait to witness a pickup in the activity.
"While these measures are a positive, GREED & fear will continue to wait for evidence of a pickup in activity," said Wood in his note. He noted that foreign net selling has continued since the announcement of the package. READ MORE
After weeks of doom and gloom, FMCG top brass express optimism##After weeks of doom and gloom, FMCG top brass express optimism
A little under three weeks ago, Britannia MD Varun Berry made headlines for pointing out that consumers were thinking twice before buying a 5 rupees pack of biscuits, let alone cars, real estate or stocks. A week after that, Parle set off alarm bells by saying it might have to consider letting go of up to 10,000 people due to slowing economic growth. Last week, Finance Minister Nirmala Sitharaman announced a slew of measures to address the slowdown, and at least when it comes to the sentiments of business leaders, the measures seem to have had a positive impact. READ MORE
US stocks rose well over a percent and other major global cues for today##US stocks rose well over a percent and other major global cues for today
Markets: The USD continued this week’s rally as U.S. yields began to push higher from very low levels. Price action remained choppy and likely dominated by positioning and generally low liquidity. The DXY index has climbed up to trade over 98.40. Also note that it will be a long weekend for the US, on account of Labor Day on Monday. Equity Close: Dow +1.25 percent, SPX +1.27 percent, Nasdaq +1.48 percent.
Second tier data: The second estimate of Q2 GDP was revised slightly lower to 2 percent QoQ in-line with expectations. U.S. consumer strength was confirmed once again, with personal consumption revised to 4.7 percent vs 4.3 percent initial. Other data was less interesting, with initial jobless claims modestly rising & the U.S. trade deficit unexpectedly narrowing to $72.3 billion.
Data on Friday: The PCE report for July, including personal income & spending will be most closely watched. Core PCE is the Fed’s favored inflation measure. The market currently expects income to slow to 0.3 percent growth, down from 0.4 percent.
Europe - wobbly data, division within ECB: We saw EURUSD resume its steady grind lower, with a series of data releases and some more ECB speakers.
- The ECB's Klaas Knot, a known-hawk within the ECB has set the cat among the pigeons with a Bloomberg headline: "There is no need to resume QE right now".
- President Draghi will still be in place for the September meeting, where a rate cut is widely anticipated. His successor, Christine Lagarde, answered questions today, but didn’t rock the boat.
- On the data front, German CPI, dropped significantly from July to August.
Brexit manoeuvres:
- The Queen approved PM Johnson’s request to prorogue parliament for a short period in Sept. The PM intends to tack on this suspension of parliament to the usual Sept recess for party conferences – meaning MPs will be out of Westminster from ept-09 to Oct-14.
- When parliament returns, Johnson has scheduled a ‘Queen’s Speech’ – where he will formally separate from former PM May’s manifesto & set out his new agenda; this will be automatically followed, as is tradition, by a confidence vote. His stated intention is still to renegotiate the Backstop with the EU (notably at the upcoming summit on Oct-17), though his moves have made a No Deal outcome more likely should government wish to pursue it.
- Why has Johnson deployed this move? The govt’s aim is twofold – firstly this prorogation limits the timetable available to his opponents within parliament to manoeuvre against a No Deal outcome. Secondly, if things fall apart, it frames any subsequent election in what he sees as a favourable light – Johnson has tried to execute the will of the people (e.g. Brexit) and has been thwarted by politicians.
– Of course, the move is not without controversy. Many are calling it ‘undemocratic’, and he will face stiff opposition, in various forms, as soon as parliament returns from Summer on Sept-03.
Here’s a set of market data to help you guide in trade today##Here’s a set of market data to help you guide in trade today
MORNING CUES
Date: August 29, 2019
Source: NSE
FIIs net sell Rs 987 crore in cash market (3871-4858)
DIIs net buy Rs 489 crore in cash market (5291-4802)
FIIs net sell Rs 1552 crore in F&O
FIIs in F&O
Date: August 29, 2019
Source: NSE
FIIs net sell Rs 1092 crore in Index Futures
FIIs net sell Rs 1002 crore in Index Options
FIIs net buy Rs 475 crore in Stock Futures
F&O Ban: NIL
INDEX CUES
Nifty Spot closed at 10948.3 down by 97.8 points
INDIA VIX closed at 16.4250 down by 2.44 percent
ACROSS SERIES
Nifty Open Interest +10.5 percent, rollovers at 69 percent vs 3 million average of 75 percent.
Nifty September Futures starts series with 1.75 crore shares in Open Interest vs 3 million average of 1.81 crore shares.
Nifty September Futures Trading at 54.05 point Premium.
Nifty Bank Open Interest +5.9 percent, rollovers at 66 percent.
OPTION CUES
Nifty PCR at 1.31
SEPTEMBER SERIES
11000 Put & 11700 Call have max Open Interest
WEEKLY OPTIONS
11100 Call adds 11.1 lakh shares, Premium at 48
11000 Call adds 10.7 lakh shares, Premium at 86
11200 Call adds 6.3 lakh shares Premium at 25
STOCK FUTURES
SUNPHARMA +5 percent
Open Interest +0.4 percent Across Series
ESCORTS +5 percent
Open Interest +5.3 percent Across Series
PEL +4.5 percent
Open Interest -1.8 percent Across Series
NCC -5 percent
Open Interest -1.9 percent Across Series
YESBANK -3 percent
Open Interest +9.4 percent Across Series
SBIN -3 percent
Open Interest +8.2 percent Across Series
PVR -3 percent
Open Interest +6.7 percent Across Series
India Q1 GDP data on Friday: Here's what the RBI, major brokerage houses and rating agencies expect##India Q1 GDP data on Friday: Here's what the RBI, major brokerage houses and rating agencies expect
The Indian economy likely expanded at its slowest pace in more than five years in the April-June quarter, driven by weak investment growth and sluggish demand, economists polled by Reuters said. That would reinforce concerns seen in the minutes from the Reserve Bank of India's August meeting, which showed policymakers were worried about weak growth and indicated further rate cuts in the next few months to boost the slowing economy.
The poll median showed the Indian economy was expected to have grown at a year-on-year pace of 5.7 percent in the June quarter, a touch slower than 5.8 percent in the preceding three months. But a large minority - about 40 percent of nearly 65 economists - expect an expansion of 5.6 percent or lower. READ MORE
