MARKET WRAP: HDFC twins drag Sensex; AMC stocks fall on Sebi's TER order

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Markets ended lower with the S&P BSE Sensex slipping 169 points, or 0.5 per cent, dragged lower by HDFC Bank and HDFC that lost nearly 1.4 per cent each. NSE's Nifty50, on the other hand, ended 43 points, or 0.4 per cent lower.

Among stocks, HDFC Asset Management Company (down over 8 per cent) and Reliance Nippon Life Asset Management (down over 11 per cent) lost ground on Wednesday, a day after the capital markets regulator Sebi announced major changes to the fee structure for the Rs 25-trillion mutual fund (MF) industry, a decision that will hit the profits of asset management companies (AMCs) but result in savings for investors. The regulator capped the so-called total expense ratio for fund houses with equity assets up to Rs 500 billion at 1.05 per cent, down from as much as 1.75 per cent charged earlier.

Markets will remain closed on Thursday on account of Moharram.
 

Global Markets

Asian stocks rose across the board and long-term US Treasury yields hovered near four-month highs on Wednesday with investors looking past the latest escalation in the US-China trade feud, seen by some market participants as less severe than expected. 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7 per cent. Hong Kong’s Hang Seng was up 1.1 per cent and the Shanghai Composite Index rose 1 per cent following a surge of 1.8 per cent the previous day. Australian stocks added 0.45 per cent, South Korea’s KOSPI dipped 0.2 per cent and Japan’s Nikkei rose 1.5 per cent.

(with wire inputs)

3:44 PM

Sectoral trend on NSE

3:44 PM

BSE Sensex: Top gainers & losers

3:36 PM

MARKET UPDATE BSE Sensex slipped 169 points, or 0.5 per cent, dragged lower by HDFC Bank and HDFC that lost nearly 1.4 per cent each. NSE's Nifty50, on the other hand, ended 43 points, or 0.4 per cent lower.

3:00 PM

Primer Sebi has cut total expense ratio for MFs: Here's what this means for you

In a bid to make investing in mutual fund (MF) schemes cheaper, market regulator Securities and Exchange Board of India (Sebi) on Tuesday lowered the total expense ratio (TER) of MFs. The move is likely not only to make it easier for you to invest in MFs but also improve the returns. So, should you park more money in these funds now? READ HERE

2:44 PM

Dinesh Engineers sets IPO price band at Rs 183185; issue to open on Sep 28

Dinesh Engineers, a passive communication infrastructure provider firm, Wednesday said it has fixed a price band of Rs 183-185 per equity share for its initial public offering, through which it is estimated to raise Rs 185 crore.

 

The company's IPO will be open for public subscription on September 28 and close on October 3, it said in a statement. READ MORE

2:30 PM

Rising liquidity issues in ILFS credit negative for Indian banks: Moody's

Moody's Investors Service Wednesday said rising liquidity issues in ILFS, which has recently defaulted on repayment of Rs 100 crore, are credit negative for Indian banks.

 

The debts incurred by ILFS in the form of bank loans accounted for around 0.5-0.7 per cent of overall banking system loans as on March 31, 2018. READ MORE

2:21 PM

World Gold Council warns India against curbs on gold imports

India should not tamper with its gold import duty or impose other restrictions to support the rupee, the World Gold Council said on Wednesday, as the government considers ways to cut "non-necessary" imports to stem an outflow of dollars. READ MORE

2:19 PM

No taker yet for IL&FS Financial Services; high NPAs keep investors away

IL&FS Financial Services (IFIN), a subsidiary of beleaguered infrastructure financing company IL&FS put up for sale three weeks ago, has failed to find any taker as prospective investors are worried over its high bad debt and recent defaults. READ MORE

2:11 PM

NEWS ALERT JP Morgan's Pinakin Parekh: Continue to see steel production cuts in China. Globally, steel stocks are trading at low-single digit PE multiples.

2:09 PM

NEWS ALERT JP Morgan's Pinakin Parekh: Steel prices are holding on to highest levels since a decade. Seen large amount of de-stocking in base metals.

2:00 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,307.35	+16.68	+0.04
S&P BSE SENSEX 50	11,804.54	+5.02	+0.04
S&P BSE SENSEX Next 50	33,939.14	+59.08	+0.17
S&P BSE 100	11,573.66	+7.22	+0.06
S&P BSE Bharat 22 Index	3,584.83	+29.52	+0.83

(Source: BSE)

2:00 PM

NEWS ALERT JP Morgan: More impact of trade wars seen in financials so far

1:47 PM

More triggers needed for sugar rally; prices may remain under pressure

Stock prices of sugar companies have gained sharply after the government’s decision to hike ethanol price, a few days ago. Balrampur Chini, Bajaj Hindusthan, Shree Renuka Sugar, and Dhampur Sugar have all risen 13-57 per cent since the move.

 

The price hike for a by-product (ethanol) brought some relief to a sector struggling with cost pressures, even as sugar realisations are trending down. READ MORE

1:36 PM

Board of KIOCL approves buyback of shares up to Rs 214 crore

At meeting held on 18 September, 2018, the Board of KIOCL at its meeting held on 18 September 2018 has approved the proposal to buyback of not exceeding 1,25,88,235 equity shares (representing 1.98% of the total number of equity shares in the Paid-up share capital of the Company at a price of Rs. 170 (Rupees One Hundred Seventy only) per equity share (the 'Buyback Offer Price') of face value Rs.10 each, payable in cash for an aggregate consideration not exceeding Rs 214 crore.

1:29 PM

Usha Martin rallies after bidders express interest in buying co's steel biz

Shares of Usha Martin jumped nearly 9 per cent in the intraday trade on Wednesday after reports said five companies have expressed interest in buying Usha Martin’s steel business.

 

The five — JSW Steel, Tata Steel, Liberty House, Kalyani and Vedanta — have signed non-disclosure agreements (NDAs) in this regard, while they do their due-diligence. Once the offers are made, it would be evaluated by an independent committee set up by Usha Martin’s board of directors. READ MORE