First Published: IST
Indian equity market ended 1 percent higher lifted by bank and financial stocks after a day of choppy trade on Tuesday. Benchmark indexes were boosted after India's largest public sector insurance behemoth, the Life Insurance Corporation of India, said that it won't let IL&FS companies to collapse, which sparked buying in the sectors after two sessions of sharp sell-off. The BSE Sensex settled at 36,652, jumping 347 points, or 0.96 percent, while the NSE Nifty50 rose to 11,067.45, rising by over 100 points, or 0.91 percent at close. HDFC twins, Kotak Bank, Infosys, Hindustan Unilever, Axis Bank, SBI, Maruti Suzuki, ITC, ICICI Bank supported indexes, while TCS, PowerGrid, Reliance Industries, Yes Bank, Coal India among the laggards. Here are the main highlights from the markets today:
Rupee ends slightly weaker at 72.69##Rupee ends slightly weaker at 72.69
Kotak Bank, HDFC twins, HUL, Axis Bank among Sensex gainers, PowerGrid, Yes Bank drag##Kotak Bank, HDFC twins, HUL, Axis Bank among Sensex gainers, PowerGrid, Yes Bank drag
Closing Bell: Sensex, Nifty end higher lifted by financials, Yes Bank shares dip##Closing Bell: Sensex, Nifty end higher lifted by financials, Yes Bank shares dip
The BSE Sensex settled at 36,652, jumping 347 points, or 0.96 percent, while the NSE Nifty50 rose to 11,067.45, rising by over 100 points, or 0.91 percent at close. HDFC twins, Kotak Bank, Infosys, Hindustan Unilever, Axis Bank, SBI, Maruti Suzuki, ITC, ICICI Bank supported indexes, while TCS, PowerGrid, Reliance Industries, Yes Bank, Coal India among the laggards. Midcaps also ended in the green, marginally up by 0.36 percent. Bank Nifty rose over a percent.
Banks, NBFCs recover after LIC statement##Banks, NBFCs recover after LIC statement
Shares of banks and financial services companies recovered after Life Insurance Corp. of India said it will not let IL&FS group companies collapse. India's largest public sector insurance behemoth holds 25 percent stake in IL&FS, said all options to resolve issue being faced by the company are "on the table" and it will ensure the contagion does not spread. IL&FS and its subsidiaries defaulted on debt repayments recently, following which credit rating agencies downgraded them to junk from AAA. At 3.15 pm, Nifty Bank index was up 1.25 at 25,281 points, while Nifty Financial Services was at 10679, up 1.85 percent. Nifty PSU Bank surged 1.23 percent, while PVT Bank shares rose 1.16 percent. The NSE Nifty50 rose over 109 points, or 0.99 percent, to trade at 11,076.30. The BSE Sensex jumped 378 points, or 1.04 percent, to trade at 36,683.12.
Rupee trades at 72.67, recovers 30 paise from intra-day low of 72.96 against the dollar##Rupee trades at 72.67, recovers 30 paise from intra-day low of 72.96 against the dollar
IL&FS group companies up as LIC says will not let IL&FS sink##IL&FS group companies up as LIC says will not let IL&FS sink
Shares of Infrastructure Leasing & Financial Services group companies recovered after Life Insurance Corp of India said it will not let crisis-hit parent Infrastructure Leasing & Financial Services collapse. LIC of India's statement came after IL&FS group, which is facing a severe liquidity crunch, defaulted on interest payments, leading to heightened concern among investors. LIC holds over 25 percent stake in IL&FS. At 2.21 pm, shares of IL&FS Transportation Networks and IL&FS Engineering and Construction Co were up 6 percent and 14 percent, respectively. (Cogencis)
Equity indices bounced back ahead of the closing trade on Tuesday with the BSE Sensex trading at 36,540.30, surging by 235.28 points, or 0.65 percent at 2.55 pm. The NSE Nifty50 traded at
11,038.70, higher by 71.30 points, or 0.65 percent.
Market erases gains as financials continue to drag; DHFL down 25%##Market erases gains as financials continue to drag; DHFL down 25%
Yes Bank hit 52-week low, Sensex down by over 100 points##Yes Bank hit 52-week low, Sensex down by over 100 points
Shares of Yes Bank today hit a 52-week low of Rs 197.25, dipping nearly 8 percent as the board meeting takes place to decide future course of action after the RBI last week curtailed CEO and MD Rana Kapoor’s term until Jan 31, 2019. Yes Bank shares opened at Rs 230 and recovered in early trade to hit the day's high of Rs 238.85, but later fell to its 52-week low amid the ongoing NBFC sell-off. The share touched Rs 404, its 52-week high on 20th August this year. The NSE Nifty50 traded at 10,930, down by over 37 points, or 0.34 percent at 1.42 pm. The BSE Sensex traded at 36,176.84, sliding by 128.18 points, or 0.35 percent.
Eicher Motors hits 52-week low, Sensex, Nifty erase gains##Eicher Motors hits 52-week low, Sensex, Nifty erase gains
Shares of truck and bus maker Eicher Motors Ltd fell 2.53 percent to Rs 25,200, losing Rs 652.80 in value, the lowest since March 31, 2017. It hit a 52-week low of Rs 25,035.25 in trade today, after opening at Rs 25,860. Stock is down 14.8 percent this year as of last close, compared with the broader NSE Index’s 4.2 percent gain. Meanwhile benchmark indexes have trimmed gains amid continued selling pressure in NBFCs. The BSE Sensex traded at 36,342.05, higher by 37.03 points, or 0.10 percent, while the NSE Nifty50 traded at 10,966, down by 1.40 points, or 0.01 percent at 1.25 pm.
IL&FS and subsidiaries file petition with NCLT to restructure debt##IL&FS and subsidiaries file petition with NCLT to restructure debt
IL&FS Financial Services Ltd has informed BSE that the Infrastructure Leasing & Finance Services Limited ((IL&FS) ultimate holding Company of IL&FS Financial Services Limited (the Company) has filed an application with the National Company Law Tribunal, Mumbai Bench on September 24, 2018 seeking certain reliefs in connection with filing of a scheme of arrangement under Section 230 of the Companies Act, 2013 in respect of IL&FS and the Company, which scheme will be prepared in compliance with applicable law and subject to necessary consents of the shareholders, creditors, regulators and board of directors of the relevant entities. Shares of IL&FS Investment Managers ltd dipped nearly 7 percent, while IL&FS Transportation Networks slipped over 3 percent. IL&FS Engineering and Construction Co ltd fell 6.54 percent.
Sugar stocks surge in trade##Sugar stocks surge in trade
GAIL falls 4%; CPSE ETF may pull out Rs 6.8 billion##GAIL falls 4%; CPSE ETF may pull out Rs 6.8 billion
GAIL India shares fell more than 4 percent as exclusion of the stock from the Nifty CPSE index will see the Nifty CPSE ETF, managed by Reliance Mutual Fund, exit the stock. This could lead to outflow of Rs 6.8 billion. Nifty CPSE ETF held 0.8 percent stake in the company as on August 31, data on the fund house's website showed. Gail shares traded at Rs 367.50, down by 3.52 percent. Meanwhile, benchmark indexes extended gains with the BSE Sensex trading at 36,471.72, surging 166.70 points, or 0.46 percent at 12.40 pm. The NSE Nifty50 traded at 11,014.95, higher by 47.55 points, or 0.43 percent.
Autoline Industries spikes over 8% on Pune land deal##Autoline Industries spikes over 8% on Pune land deal
Autoline Industries Ltd shares spiked over 8 percent after reports that its unit Autoline Industrial Parks has signed an agreement with Poddar Habitat Pvt Ltd, a unit of Poddar Housing and Development Ltd, to transfer a land parcel in Pune in phases. Autoline Industries shares traded 8.21% up at Rs 70.50 at 11.49 am. The NSE Nifty50 traded higher by 27.30 points to trade a tad below 11,000 mark at 10,994.74.
Market recovers, trading at day's high currently##Market recovers, trading at day's high currently
TCS recovers post early slump on defensive buying##TCS recovers post early slump on defensive buying
Shares of Tata Consultancy Services recovered, having declined nearly 2 percent earlier in the session, because of defensive buying by domestic and foreign institutional investors, said a dealer. Shares of the information technology giant had fallen nearly 2 percent on report that the company has been sued by three US citizens for alleged employment discrimination based on race and origin. The company "believes that the allegations by the plaintiffs are baseless, and is confident that it will successfully defend itself," the report said, quoting a TCS spokesperson. With investors seeking safety and the outlook for the company being positive, panicked investors have bought the stock in recent session to protect their capital. (Cogencis)
Abhishek Kothari's quick take on why NBFCs are taking a hit in trade today##Abhishek Kothari's quick take on why NBFCs are taking a hit in trade today
Non banking financial companies are under pressure owing to the fact that liquidity in the money market is drying up, while they are also facing redemption pressure on their papers. Fear on the street is that it may lead to repayment pressure for NBFCs while impacting the growth profile of the NBFCs due to tightening up of liquidity in the money market. Over the last 3-4 years, as interest rates had started to reduce, all the NBFCs shifted their borrowing profit to money market, whose share increased from 10 percent to as high as 60 percent. This led to a fall in credit growth for the banks as well. Now, however, many NBFCs have said on record that they intend to use the sanction limits from banks as bank rates are better than money market rates. This in turn could mean pick up in the credit growth of the banks.
Bajaj FinServ recovers over 3% to notch day's highest level so far##Bajaj FinServ recovers over 3% to notch day's highest level so far
Airline shares extend losses as crude oil prices rise##Airline shares extend losses as crude oil prices rise
Rising crude oil prices triggered fresh concerns for aviation stocks with shares of all three main airline companies - IndiGo, Jet Airways and SpiceJet - extending losses on Tuesday. Concerns stem from the fact that higher crude oil prices will eat into already thin margins and profitability of these companies. Brent crude oil prices surged over 3 percent overnight as investors anticipate supply crunch caused by the upcoming US sanctions against Iran and the Opec's non-commitment to raise output. Indian airline companies are prone to volatility in crude oil prices as jet fuel costs account for more than a third of their expenditure. Shares of InterGlobe Aviation and Jet Airways India declined over 2.2 percent each, while those of SpiceJet fell over 5 percent. Meanwhile, benchmark equity indexes recouped losses from early trade as the Indian rupee mildly recovered against the dollar. The NSE Nifty50 traded at 10,956.10, still down by 11.30 points, or 0.10 percent, while the BSE Sensex was trading at 36,267.04, lower by 37.98 points, or 0.10 percent at 10.05 am.
Yes Bank, ONGC, HDFC, Reliance among top gainers on Sensex, Bharti Airtel falls##Yes Bank, ONGC, HDFC, Reliance among top gainers on Sensex, Bharti Airtel falls
Opening Bell: Sensex, Nifty open flat amid subuded global cues, financials again under pressure##Opening Bell: Sensex, Nifty open flat amid subuded global cues, financials again under pressure
Indian equity market opened on a flat note on Tuesday and turned negative. The BSE Sensex settled at 36,350.25, higher by 45.23 points, or 0.12 percent in the opening tick. At 9.16 am, the 30-share S&P BSE index slipped lower by 12 points, or 0.03 percent, to 36,292.99. The NSE Nifty50 opened flat at 10,969.95, up by just 2.55 points, 0.02 percent. It shed over 12 points, or 0.11 percent, to trade at 10,955.15.
Videocon Industries: Insolvency Professional invites resolution plans, last date is October 5##Videocon Industries: Insolvency Professional invites resolution plans, last date is October 5
Rupee opens lower at 72.89 against the US dollar##Rupee opens lower at 72.89 against the US dollar
The Indian rupee opened at 72.89 against the US dollar, weakening further from its Monday's close of 72.63 against the greenback.
Hot stocks to watch out on September 25##Hot stocks to watch out on September 25
Here’s what brokerages are saying on specific sectors##Here’s what brokerages are saying on specific sectors
Kotak Securities on consumers:
Advise resisting any temptation to look at the recent correction in the sector.
There is very little value; earnings prognosis is a mixed bag.
Volume prognosis improving a tad but risks to margin improvement thesis rising too.
Remain cautious overall; ITC, Britannia, Nestle, Jubilant Food and Colgate preferred picks.
Axis Capital on airline companies:
Capacity utilisation declined as Indigo & GoAir impacted by P&W engine issues.
Return to sub-20% YoY passenger growth remains a concern.
Low growth and weak fare outlook may keep margin in check.
Market share remains steady as most airlines run at full capacity.
Jefferies on engineering and construction:
Engineering air-conditioner segment back on growth path after 8 years of weak demand.
Prospects for both industries are strong in the medium term.
Upgrades Blue Star to BUY, target price at Rs 800/share.
Blue Star share price reflects margin impact of water purifier investment.
Remain positive on Voltas and believe weakness is a buying opportunity.
Commodity and currency impact limited to 1-2 quarters.
Target price for Voltas at Rs 750/share.
Why the street is positive on Divi’s Labs, explains Ekta Batra##Why the street is positive on Divi’s Labs, explains Ekta Batra
Hyderabad-based Divi’s Labs is around a fresh 52 week high. In fact, the stock has outperformed most of its pharma peers in 2018, gaining 25 percent versus the Nifty Pharma index up 5 to 6 percent. And it seems the street expects the outperformance to continue.
Here is what HDFC's Bhaskar Panda is saying on the rupee movement against the dollar##Here is what HDFC's Bhaskar Panda is saying on the rupee movement against the dollar
Here are the top stocks to watch out for in today's trade##Here are the top stocks to watch out for in today's trade
Lakshmi Vilas Bank: Private sector Lakshmi Vilas Bank said on Monday it has exposure to an IL&FS subsidiary and the loans to the company are standard. Lakshmi Vilas Bank said it received certain queries from investors seeking clarification on the bank's exposure to the IL&FS group.
NTPC: State-run power producer NTPC has been given the green clearance for the Rs 7,732.35 crore expansion project of the Talcher Thermal Power Station in Odisha, a senior government official said on Monday.
PFC, REC: The government is considering selling its 65.61 per cent stake in state-owned Power Finance Corporation (PFC) to Rural Electrification Corporation (REC), which could fetch the exchequer about Rs 13,000 crore.
L&T Technology Services: L&T Technology Services (LTTS) on Monday said it has bagged a deal worth $40 million (about Rs 290 crore) to provide digital content management services to a technology company's industrial products segment.
Check more Hot Stocks today.
Here is what you need to know before the market opens##Here is what you need to know before the market opens
Asia: MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.1 percent. Australian stocks lost 0.08 percent and Japan's Nikkei bucked the trend and edged up 0.2 percent.
US: The Dow Jones Industrial Average fell 181.45 points, or 0.68 percent, to 26,562.05, the S&P 500 lost 10.3 points, or 0.35 percent, to 2,919.37, and the Nasdaq Composite added 6.29 points, or 0.08 percent, to 7,993.25.
Dollar index: The dollar edged up to a two-month peak of 113.00 yen. The dollar index against a basket of six major currencies edged up 0.05 percent to 94.229. The euro traded little changed at $1.1753. The single currency had surged to a 3-1/2-month peak of $1.1815 on Monday.
Crude oil prices: Brent crude futures were at $81.39 per barrel at 0042 GMT, up by 19 cents, or 0.2 percent from their last close. This was not far off the November 2014 high of $81.48 a barrel reached the previous day.
Check out more market cues.
Here’s how brokerages rate specific stocks##Here’s how brokerages rate specific stocks
Goldman Sachs on Eicher Motors:
Launch of 2 new motorcycles a key catalyst for the stock.
Big leap forward in terms of engineering, quality and design capability.
May see an increase in revenue share from accessories and parts.
Reiterates BUY call on the stock, target 37,358/share.
Macquarie on Hindustan Zinc:
Lowered Zinc, Lead and Silver prices for FY19–21
Lower commodity prices is driving 8–12 percent cuts to our FY19–21 EPS
Premium valuation difficult to justify with inconsistent dividend payout.
Downgrade to UNDERPERFORM, target cut to Rs 253 from Rs 273/share.
Macquarie on Nalco:
Upgraded alumina prices by 25-37 percent for FY19-20
Higher alumina, ali and weaker leads to +25-41 percent EPS for FY19-21.
The company is the best play on alumina.
Maintains OUTPERFORM call, target raised to Rs 87 from Rs 82/share.
Citi on Reliance Industries:
Earnings outlook stable near-term, mixed in the medium term.
BUY call, target at Rs 1,300/share.
Earnings upgrades revived after a period of consolidation.
Citi on L&T Finance:
BUY call, target price at Rs 225/share.
Expect cost of equity at 13.3 percent and RoE of 20.5 percent.
Recent trends have been healthy for the rural segment.
Execution on growth and asset quality for rural portfolio will be key.
Nomura on Cummins:
Maintains BUY call, target at Rs 890/share.
Company has defended the downcycle well, time for an upcycle.
Stock correction provides buying opportunity.
Build in an 11.2 percent adjusted revenue CAGR over FY18-21.
Axis Capital on Yes Bank:
Maintains BUY call, target cut to Rs 300 from Rs 430/share.
Believe the ride will not be smooth as Kapoor was a key catalyst.
Kapoor’s absence may impact in terms of the continuity of strategies and outlook.
Key fear hovers around some kitchen sinking activity or holes in the B/S.
Valuations seem reasonable.
Check how Emkay rates BFSI stocks##Check how Emkay rates BFSI stocks