Sensex ends flat, Nifty below 9,950; ITC drags FMCG index

Catch all that happened in the market here

The markets ended flat amid mixed global cues tracking Asian markets after US President Donald Trump and congressional leaders agreed to raise the government debt limit until December, eliminating the risk of a government shutdown for now.

Trump forged a surprising deal with Democrats in Congress on Wednesday to extend the US debt limit and provide government funding until December 15, embracing his political adversaries and blindsiding fellow Republicans in a rare bipartisan accord.

The agreement, which eliminates the near-term risk of a government shutdown, helped the MSCI’s broadest index of Asia-Pacific shares outside Japan gain 0.5%. Japan’s Nikkei closed 0.2% higher.

European markets were also trading slightly higher with the pan-European Stoxx 600 edged up by around 0.2%.

3:53 PM

Analyst View

 

Vinod Nair, Head of Research, Geojit Financial Services: Blue-chips have been consolidating in the last one month in line with the havoc in global market and outflows in FII money. But undercurrent is strong as shown by the positive return & outperformance of Mid & Small cap. The underline is that market is hoping for a strong pick-up in earnings growth by H2FY18, which is the fillip to go beyond current level.

 

3:52 PM

Nifty FMCG was the only sector that ended in negative, dragged mainly by ITC

Source: NSE

3:52 PM

Sectoral Trend: Nifty metal was the top sectoral gainer, up 1%

Source: NSE

3:38 PM

Top gainers and losers on BSE Sensex

Source: BSE

3:34 PM

Markets at close

The markets ended flat amid mixed global cues tracking Asian markets after US President Donald Trump and congressional leaders agreed to raise the government debt limit until December, eliminating the risk of a government shutdown for now.

The S&P BSE Sensex ended ar 31,662, up 1 point while Nifty 50 index was ruling at 9,929, up 13 points 

 

3:23 PM

BUZZING STOCK

Eicher Motors, the maker of Royal Enfield motorbikes, rose 2.5% after the Economic Times reported the company is set to make a binding takeover bid for Italian motorcycle manufacturer Ducati for $1.8 billion-$2 billion.

3:18 PM

Asia Check

Asian shares bounced back after US President Donald Trump and congressional leaders unexpectedly agreed to raise the government debt limit until December, eliminating the near-term risk of a government shutdown.

 

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3% while Japan's Nikkei rose 0.2%.

 

South Korea's KOSPI, which has been burdened by tensions over North Korea, jumped 1.2%, on course to mark its biggest gain in four months.

 

3:12 PM

'Actual beneficiaries' of shell firms next on Modi govt's hit list
 

The government on Wednesday said directors or authorised signatories of deregistered companies who try to siphon off money from the firms' bank accounts can face up to 10 years imprisonment.

 

Besides, the directors of shell companies that have not filed their returns for three or more years would be disqualified from holding such position in any other firm.

 

The government has also identified chartered accountants, company secretaries and cost accountants associated with shell firms in certain cases.

READ FULL REPORT HERE

3:04 PM

Bajaj Finance hits new high
 

Bajaj Finance hit a new high of Rs 1,950, up 5%, extending its previous day’s 4% gain on the BSE, after the company launched a qualified institutional placement (QIP) offering up to Rs 4,500 crore from institutional investors.

 

Bajaj Finance on Tuesdayin a regulatory filing said that the company may offer a discount of not more than 5% on the floor price of Rs 1,771.90 calculated for the QIP. READ MORE

2:48 PM

Market breadth

 

Market breadth, indicating the overall health of the market remained positive. There were 1,420 advances against 1,092 declines, while 156 stocks remained unchanged.  

2:30 PM

ICICI Lombard IPO to hit market on Sept 15

 

ICICI Lombard General Insurance Company's estimated Rs 6,000-crore initial public offer (IPO) will open for subscription on September 15. CLICK HERE FOR DETAILS

2:20 PM

Buzzing stock

Religare Enterprises hit a new low of Rs 38.15, down 5% on the National Stock Exchange (NSE) on Thursday, extending its past one month fall, on the back of heavy volumes. READ MORE 

 

1:59 PM

Top five gainers on Nifty

Source: NSE

1:58 PM

IPO watch: Centrum Wealth advises against investment in Dixon Technologies

 

Low margin Business: We do not find anything wrong with the business model but we are not comfortable recommending investors to invest in such low single digit EBITDA margin business (3.7% in FY17). Although, the company has an asset light, scalable business model (high growth industry) with high RoEs of >30%.

 

High valuation: At the same time, valuation looks stretched for such kind of low margin business. At the higher price band of Rs1,766, the stock is valued at 39.7 P/E on FY17 basis (post dilution).

 

Better investment opportunities in the market: In our view there are many listed opportunities with better financials available at lower and comfortable valuation.

 

90% of the issue is Offer for Sale: Even if money raised at such valuations was flowing into the company, it would have ultimately belonged to shareholders. However, in this case it may be noted that 90% of the money raised is going to the selling shareholder (PE investor, Promoter and other existing shareholders) and not into the company.

1:56 PM

Broader markets

 

The BSE Midcap and the BSE Smallcap indices continued to outperform by rising 0.7% each in noon deals.