Sensex slips 162 points, Nifty below 10,500 on fiscal deficit concerns

All that happened in the markets today.

9:01 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,238.05	-108.34	-0.32
S&P BSE SENSEX 50	11,017.70	-30.36	-0.27
S&P BSE SENSEX Next 50	34,001.57	-244.84	-0.71
S&P BSE 100	10,919.15	-37.65	-0.34
S&P BSE Bharat 22 Index	3,611.54	-23.26	-0.64

(Source: BSE)

9:00 AM

STOCKS IN NEWS

HDFC QIP floor price set at Rs 1,824.63 apiece. Panel will consider QIP issue price on March 5.

Cipla partnered with Roche Pharma India to create greater access to key medicines.

DLF’s subsidiary emerged as the highest bidder for 11.76-acre Gurugram land at Rs 1,500 crore.

Kridhan Infra acquired 31.5% stake in Vijay Nirman.

Sadbhav Infrastructure Projects declared lowest bidder for Rs 1,047 crore NHAI order.

Larsen & Toubro to sell up to 2% stake, in L&T Infotech to achieve the minimum public shareholding.

Bharat Forge completes divestment of its shareholding in Alstom Bharat Forge Power to GE.

ABC India receives order of Rs 142cr from BHEL for Multimodal Transportation of Export Project Cargo.

Atlas Cycles manufacturing activity at Sonepat unit has been temporarily suspended may be closed after re-assessing the situation

Reliance Industries may shut down KG basin’s MA Field by Oct on falling output.

BPCL In talks to sell stake in Bina refinery. National oil firms of Oman, Kuwait, Abu Dhabi may buy upto 24% stake.

A consortium of Dalmia Bharat and Bain Piramal Resurgence Fund emerged the top bidder for Binani Cement, trumping UltraTech Cement, with a Rs 6,700-crore offer that will see banks getting all their money back, challenging the assertion that bankers will face losses in every bankruptcy resolution case.
 

Singaporean sovereign wealth fund GIC has agreed to invest around Rs 2,600 crore in real estate firm Prestige Estates' subsidiary Exora Business Park for a consideration of up to 40% stake.

(Source: Nirmal Bang report)

8:57 AM

News Watch Nirav Modi's Firestar Diamond files for bankruptcy as PNB fraud hits $2 bn

The international jewelry business that's part of the empire controlled by Nirav Modi, a billionaire accused of masterminding India’s biggest bank fraud, has filed for bankruptcy in the US just as the Indian lender at the heart of the scam revised up its fraud estimate. READ MORE

8:54 AM

Trading volumes on SGX in sync with FII flows into the domestic market

The measures taken by domestic bourses to put an end to offshore trading of domestic securities could dent foreign institutional investor (FII) flows into Indian capital markets. Historical data suggests a positive correlation between FII inflows in India and the volume of Nifty contracts traded on the Singapore Stock Exchange (SGX). High portfolio flows into Indian markets have been accompanied by an increase in trading volumes in Nifty contracts at the SGX. READ MORE

8:49 AM

Today's picks: From Tata Motors to Vedanta, hot stocks to watch on Tuesday

Tata Motors

Current price: Rs 373

Target price: Rs 367

Keep a stop at Rs 377 and go short

Add to the position between Rs 368 and Rs 369

Book profits at Rs 367

CLICK HERE FOR MORE

8:45 AM

Hold Nifty longs for target of 10,700-10,750: HDFC Securities

Nifty Outlook: Yesterday, Nifty failed to surpass the previous top resistance of 10638, to close at 10554. Yesterday’s fall from the higher levels seems like a regular profit booking, which does not violate the probability of extending the pullback in the Nifty towards the next target of 10700-10750. Last week, Nifty formed bullish candlestick pattern known as “Dragonfly Doji” on the weekly charts. This pattern signals indecision among traders. It's formed when the security's high, open, and close prices are the same. The long lower shadow suggests that the forces of supply and demand are nearing a balance and that the direction of the trend may be nearing a major turning point. There is strong support at 10500 levels, around which Nifty should be bought into, with the stop loss of 10450. READ MORE

8:43 AM

Interview of the day: Higher volatility to persist due to fiscal slippage, says Pankaj Sharma

Bonds do not like fiscal indiscipline and this is reflected in the rise in yields, says PANKAJ SHARMA, chief investment officer (fixed income), DSP BlackRock Mutual Fund. A reversal in the interest rate stance may happen sooner than later, he tells Ashley Coutinho in an interview. READ MORE

 

8:41 AM

News Watch Check NPAs above Rs 500 mn for possible fraud, alert CBI: Govt tells banks

Jolted by the PNB fraud, the finance ministry on Tuesday directed managing directors of public sector banks to examine NPA accounts of more than Rs 500 million for possible fraud and report any cases of wilful default to the CBI. The ministry also set a 15-day deadline for PSBs to put in place an effective system to address rising operational and technological risks. These directions are part of the reforms that the government had packaged with the recapitalisation plan for banks. READ MORE

8:39 AM

HG Infra Engineering's Rs 4.6 billion IPO subscribed 44 times

HG Infra Engineering's Rs 4.6-billion IPO was subscribed 44 times a day before its close. Bulk of the subscription so far has come from retail investors. HG Infra is a construction firm with a focus on road projects. The price band for the IPO is Rs 263 to Rs 270 per share. CLICK HERE FOR MORE

8:37 AM

Top trading ideas for the day

BUY NCC 
CMP: Rs 130.35
TARGET: Rs 145
STOP LOSS: Rs 122

The stock has been in consolidation for quite some time moving in the range of 123 and 128 levels and now has given a breakout with a positive candle pattern in the daily chart.

 

The chart looks attractive with potential to rise for further upward targets in the coming days. The indicators has shown positive bias with the RSI showing a trend reversal and has signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 145 keeping a stop loss of 122. CLICK HERE TO READ MORE

8:36 AM

MARKET COMMENT: Amar Ambani, partner and head of research, IIFL

Federal Reserve Chairman Jerome Powell’s optimism on the US economy meant the possibility of four rate hikes this year. At least that is the market-wide interpretation for now. Bond yields rose higher while stocks came tumbling down. Back home, GST revenue collections for January dropped marginally compared to December and stood at Rs 8,6318 crore. Exit polls have predicted a comfortable win for BJP in the North East. A choppy session is in store. GDP estimates and fiscal deficit numbers will be out today. HDFC QIP could result in heightened activity on the counter. US indices closed lower and Asian markets are moving with a negative bias.

8:35 AM

Nifty outlook by Prabhudas Lilladher

The bounce back rally seems to be capped at crucial resistance level of 10,630 which is also where the 50DMA lies. Market would now witness a range of 10,300-10,650 levels for the coming days and a decisive move past any of these levels would decide the further move. The support for the day is seen at 10,500 while resistance is seen at 10,610.

8:35 AM

Markets on Tuesday PNB tumbles over 12%, PSU bank index sheds 3.5%

Shares of Punjab National Bank (PNB) came under heavy selling pressure on Tuesday after the state-owned lender said the size of the fraud reported in one of its Mumbai branches could go up by Rs 13 billion. Its shares declined by Rs 13.6, or 12%, to close at Rs 98.35 apiece on the BSE, its lowest level in 20 months. Investors started dumping PNB shares ever since the bank disclosed a $2-billion fraud in its system. The stock has plummeted 50% from its January peaks. READ MORE
 

8:35 AM

MARKET COMMENT: Angel Broking

We continue to believe that breaking above 10640 levels would extend this relief rally for the Nifty50 index towards 10700 – 10750; but it certainly does not change the broader picture, which turned in favor of the bears couple of weeks back. For a time being, traders should focus on these crucial levels and should position themselves accordingly.

8:34 AM

MARKET COMMENT: Jayant Manglik, President, Religare Broking

The benchmark indices traded in a range on Tuesday taking cues from its Asian counterparts and ended on a negative note, as investor sentiments dampened after PNB revealed some additional unauthorized transactions after the Nirav Modi scam. Banking index was the biggest loser led by continues selling in the PSU stocks. Asian and European markets exhibited mixed trend ahead of Federal Reserve Chairman Jerome Powell’s highly anticipated first congressional testimony later in the day.

In the near term, the market participants will look forward to key economic data such as Nikkei Markit Manufacturing Purchasing Managers Index (PMI), Fiscal Deficit and Gross Domestic Product (GDP) scheduled to be released this week. We expect further consolidation in Smallcap and Midcap stocks before any upmove in the broader market indices