MARKET WRAP: Sensex slips 171 pts amid weak global cues; RIL up over 2.5%

All that happened in the markets today.

12:17 PM

BROKERAGE VIEW:: Emkay Global Financial Services on Jindal Stainless

RATING: HOLD | TARGET PRICE: Rs 51

The stock is currently trading at 4.2x our FY22E EV/EBITDA. We have already assumed a recovery of 96% volumes for the next 9MFY21 vis-à-vis FY20 and hence, the room for further upgrade on volumes is limited. We have also built in margin of Rs12,000/t+ for remaining 9MFY21 compared to Rs7208/t in Q1. Issuance of warrants to promoters at a discount restrains us from improving the multiple on the stock from 4.5x to 5x despite JSL coming out of CDR formally. We maintain Hold. The key risk is higher-thanestimated EBITDA margins.

12:14 PM

MARKET CHECK :: Nifty breaks below 11,200

12:11 PM

MARKET CHECK :: Sensex at day's low

12:04 PM

Hexaware Tech, Wipro: Are IT stocks a safe bet in the current market?

Information technology (IT) stocks were trading mixed on Wednesday. The Nifty IT index was down 0.6 per cent at 18,409 levels as compared to around 1 percent fall in the Nifty50 index.

 

On a year-to-date (YTD) basis, the Nifty IT index has outperformed the market by surging nearly 18 per cent (as of Tuesday's close) as compared to a 7 per cent fall in the benchmark Nifty50, ACE Equity data show. READ MORE

11:52 AM

MARKET UPDATE:: Broader indices underperform

11:42 AM

SoftBank sheds $15 billion in market capitalisation on US tech stock rout

SoftBank Group Corp shares were down 5 per cent in afternoon trade on Wednesday, extending this week's slump that has wiped $15 billion from its market capitalisation, as investors worried about the conglomerate's exposure to sliding US tech stocks. The fall takes SoftBank's share decline to 12 per cent since sources told Reuters and other media late last week that the Japanese company made big bets on equity derivatives tied to tech firms. READ MORE

11:28 AM

TeamLease Services hikes stake in Schoolguru by 36%; stock declines 5%

The consumer services company, on Tuesday, announced acquisition of additional 36.17 per cent stake in Schoolguru Eduserve. "Pursuant to the said acquisition of additional 36.17 per cent stake, the Company now holds 76.37 per cent stake in Schoolguru, hereby rendering Schoolguru as a Subsidiary of the Company, with effect from the said date," it said in an exchange filing READ MORE

11:15 AM

Jubilant Life slips 17% in 3 days on weak Q1 results, CFO's resignation

Shares of Jubilant Life Sciences declined for the third straight day, down 8 per cent to Rs 686 on the BSE on Wednesday after reporting weak earnings for the quarter ended June 2020 (Q1FY21). The pharmaceutical company also informed that Alok Vaish, Chief Financial Officer (CFO) and Key Managerial Personnel, has tendered his resignation from services of the Company which has been accepted by the Company. He shall continue in his current role until September 11, 2020. READ MORE

11:07 AM

Corporates not immune from GDP contraction, risk from loans lower: Moody's

Rating agency Moody’s on Wednesday said that corporates will not be immune from the deep economic contraction in India following the Covid-19 pandemic. However, the risks from corporate loans are lower now compared to 2012-19 period as both banks and corporates took steps in the last few years to repair asset quality and financial profile. READ MORE

10:57 AM

Top losers on BSE at this hour

COMPANY	PRICE(rs)	CHG(%)
ASTRAZENECA PHAR	3842.55	-8.83
JUBILANT LIFE	700.00	-6.51
ADITYA BIR. FAS.	129.00	-6.28
INDIAMART INTER.	4477.00	-5.88
TIMKEN INDIA	1113.00	-5.76

10:49 AM

Paul Hickin :: Oil market's reliance on China shows narrowing options

A look at Chinese ports tells the full story. Shandong - home to a host of independent refineries - is completely congested. The volume of crude stored on tankers idled in Chinese waters near the port city for over a week has quintupled from normal levels. READ MORE

10:37 AM

Expert View :: Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking on Oil prices

On Tuesday, WTI Crude plunged over 7.5 percent closing at $36.8 per barrel as pandemic triggered demand concerns and appreciating U.S. Dollar continued to undermine WTI Crude Oil prices. WTI crude oil corrected sharply by 16% in last 7 days. It is trading around $ 36.33 per barrel and Brent crude oil is trading at $39.42 per barrel .  Saudi Aramco also reduced pricing for October crude sales in Asia and the U.S. as demand remained stuck below pre-Covid levels.

 

Widening impact of the pandemic reflecting the surge in covid-19 cases around the globe clouded the outlook for Crude as the global Oil market struggled to recover from the economic slump. Oil prices plunged after top Crude exporter, Saudi Arabia, trimmed the Official Selling Price (OSP) to Asia for the month of October’20 considering the falling demand. Moreover, the recent recovery in Oil prices boosted U.S. companies to ramp up drilling of new supplies which further weighed on the Crude prices. OPEC & its allies are scheduled to meet on 17th September to review the Oil market scenario. For today traders can go for sell in Crude oil at 2700 levels, with the stop loss of 2760 levels and for the target of 2600 levels.

10:31 AM

Oil-related stocks in focus as crude oil prices tumble; ONGC declines 4%

Shares of oil & gas, paints, aviation, and tyre companies were trading actively on the BSE on Wednesday as the crude oil prices tumbled after Saudi Arabia cut its October selling prices and Covid-19 cases rebounded in many countries. The rebound in Covid-19 cases could weaken the global economic recovery and sap fuel demand. READ MORE

10:25 AM

NEWS ALERT :: Dr Reddy's Labs launches Remdesivir, under a brand name Redyx, in India

>> It also  launched over-the-counter Diclofenac Sodium Topical Gel 1%, the store brand version of Voltaren Arthritis Pain in the US market.

10:22 AM

RIL gains 1% as Silver Lake to invest Rs 7,500 crore in Reliance Retail

Shares of Reliance Industries (RIL) were up 1.5 per cent to Rs 2,139 on the BSE on Wednesday after the company announced that Silver Lake will invest Rs 7,500 crore into Reliance Retail Ventures Limited (RRVL), a subsidiary of RIL. The stock was trading higher for the third straight day in an otherwise subdued market. “This investment values RRVL at a pre-money equity value of Rs 4.21 trillion. Silver Lake’s investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis,” RIL said in a press release. READ MORE