Sensex ends 137 pts down, Nifty at 10,458 levels; PSU banks fall
All that happened in the markets today.
 "Markets, Stocks, BSE, NSE, SENSEX")
Photo: Shutterstock.com
The benchmark indices ended marginally lower on Thursday afternoon amid thin trade.
The S&P BSE Sensex ended the day at 34,047, down 137 points while the broader Nifty50 index settled at 10,458, down 34 points.
In the domestic market, economic growth recovered to a five-quarter high of 7.2 per cent during October-December, backed by strong manufacturing and investment activity as the disruption caused by the goods and services tax (GST) bottomed out. The robust third-quarter performance led to a marginal upward revision in the second advance estimate for 2017-18 to 6.6 per cent from 6.5 per cent in the first estimate, though it was still lower than the 6.75 per cent projected by the Economic Survey. The data came after the markets ended on Wednesday.
In the global markets, Asian stocks skidded on Thursday after comments from the Federal Reserve’s new chief rekindled fears about the pace of US monetary tightening this year, sending Wall Street tumbling for its worst performance in two years and lifting the dollar.
The S&P BSE Sensex ended the day at 34,047, down 137 points while the broader Nifty50 index settled at 10,458, down 34 points.
Indian equity, forex and commodity markets will remain closed on Friday, March 2, 2018, on account of Holi.
Among sectoral indices, Nifty PSU Bank index fell 1.87% on Thursday led by a decline in the shares of Indian Bank, Canara Bank and Bank of India.
In the domestic market, economic growth recovered to a five-quarter high of 7.2 per cent during October-December, backed by strong manufacturing and investment activity as the disruption caused by the goods and services tax (GST) bottomed out. The robust third-quarter performance led to a marginal upward revision in the second advance estimate for 2017-18 to 6.6 per cent from 6.5 per cent in the first estimate, though it was still lower than the 6.75 per cent projected by the Economic Survey. The data came after the markets ended on Wednesday.
In the global markets, Asian stocks skidded on Thursday after comments from the Federal Reserve’s new chief rekindled fears about the pace of US monetary tightening this year, sending Wall Street tumbling for its worst performance in two years and lifting the dollar.
Fed Chairman Jerome Powell, in his first public appearance as head of the US central bank, vowed on Tuesday to prevent the economy from overheating while sticking with a plan to gradually raise interest rates.
That was enough to send investors out of stocks, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.35 per cent, while Japan’s Nikkei dropped 0.85 per cent.
(with Reuters inputs)
(with Reuters inputs)
3:38 PM
Top Sectoral loser: Nifty PSU Bank index
3:36 PM
Sectoral Trend
3:34 PM
Top Sensex gainers and losers
3:32 PM
Markets at Close
The S&P BSE Sensex ended the day at 34,047, down 137 points while the broader Nifty50 index settled at 10,458, down 34 points
The S&P BSE Sensex ended the day at 34,047, down 137 points while the broader Nifty50 index settled at 10,458, down 34 points
3:19 PM
ALERT: Indian equity, forex and commodity markets will remain closed on Friday, March 2, on account of Holi.
3:15 PM
Sector watch: Auto
The demand for auto components from domestic original equipment manufacturers (OEMs), especially high volume two-wheeler (2W) and passenger-vehicle (PV) industry which together constitute about two-third of overall ancillary industry size, has remained strong in Q3FY2018. Moreover, stellar growth in CV as well as tractor segment has further supported overall volume growth.
According to an ICRA note on the industry, given the indicative trends, the growth momentum is expected to sustain in Q4FY2018 as well. This will be strongly supported by improved demand outlook in key end user segments as well as expected pickup in rural income. Going forward, pickup in infrastructure activity will further drive growth in construction & mining equipment as well as the tipper segment (classified under M&HCVs)
(Source: ICRA report)
The demand for auto components from domestic original equipment manufacturers (OEMs), especially high volume two-wheeler (2W) and passenger-vehicle (PV) industry which together constitute about two-third of overall ancillary industry size, has remained strong in Q3FY2018. Moreover, stellar growth in CV as well as tractor segment has further supported overall volume growth.
According to an ICRA note on the industry, given the indicative trends, the growth momentum is expected to sustain in Q4FY2018 as well. This will be strongly supported by improved demand outlook in key end user segments as well as expected pickup in rural income. Going forward, pickup in infrastructure activity will further drive growth in construction & mining equipment as well as the tipper segment (classified under M&HCVs)
(Source: ICRA report)
3:13 PM
Fund flow tracker: January month flow update
Country allocations—allocations to India and China constitute more than one-third of the average Asia ex-Japan fund portfolio. Allocation to India by Asia ex-Japanese funds declined to 11.8% in January from 13.6% a year ago. Fund allocation to India by GEM funds declined to 9.8% from 10.8% a year ago. Allocation by Asia ex-Japan non-ETF funds to India declined to 12.3% in January from 14.2% in January 2017. Allocation to India by GEM ETF funds increased to 9.4% in January from 9.3% a year ago.
(Source: Kotak Securities report)
India flows—listed funds turned net buyers in January. India saw inflows of US$3 bn, led by US$1.7 bn of non-ETF inflows and US$1.3 bn of ETF inflows. GEM funds saw higher inflows than India-dedicated funds. GEM funds saw US$1.7 bn of inflows (US$919 mn of ETF flows and US$745 mn non-ETF flows). India-dedicated funds saw US$821 mn of inflows, led by non-ETF inflows of US$579 mn.
Emerging market flows—China saw the highest inflows, US$9.2 bn, led by strong non-ETF flows of US$5.5 bn. Total FPI activity and EPFR activity showed similar trends for most of the countries in January.
Country allocations—allocations to India and China constitute more than one-third of the average Asia ex-Japan fund portfolio. Allocation to India by Asia ex-Japanese funds declined to 11.8% in January from 13.6% a year ago. Fund allocation to India by GEM funds declined to 9.8% from 10.8% a year ago. Allocation by Asia ex-Japan non-ETF funds to India declined to 12.3% in January from 14.2% in January 2017. Allocation to India by GEM ETF funds increased to 9.4% in January from 9.3% a year ago.
(Source: Kotak Securities report)
foreign flows, Stock markets
3:10 PM
Weight of cyclicals to go up in Nifty50
Effective April 2, Ambuja Cement, Aurobindo Pharma and Bosch will make way for Grasim Industries, Titan and Bajaj Finserv in Nifty 50. Consequently, the sectoral weight will increase in Consumer Discretionary (+82bps), NBFC (+61bps) and Cement (+60bps) at the expense of Auto (-55bps), Pharma (-47bps) and Private Bank (-34bps). Moreover, the number of financials will increase to 11 and their weight will marginally increase from 36.4% to 36.6%
(Source: Elara Capital report)
(Source: Elara Capital report)
3:08 PM
Market check
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 34,058.09 | -125.95 | -0.37 |
| S&P BSE SENSEX 50 | 10,924.42 | -35.10 | -0.32 |
| S&P BSE SENSEX Next 50 | 33,682.82 | -208.28 | -0.61 |
| S&P BSE 100 | 10,825.16 | -39.79 | -0.37 |
| S&P BSE Bharat 22 Index | 3,579.61 | -16.94 | -0.47 |
(Source: BSE)
3:08 PM
K R Choksey Institutional Research on VA Tech Wabag
At Rs 550, the stock is trading at 14.2x on FY19E and 11.4x on FY20E of our earnings estimates. The stock has been historically trading at medium multiple of ~17x on 1 yr fwd and ~12x 2yr fwd P/E band. However, valuations improved at the time of NDA victory on the expectations of uptick in the order activity.
We expect more wastewater treatment order to be announced before next election and hence, players like VA Tech Wabag are expected to benefit from this process. This, in turn, could improve valuations of the company and hence, valuing the company at 15x on FY20E earnings of Rs 48.1, we have arrived a target price of Rs 722, potential upside of 31% from Rs 550. We have ‘BUY’ rating on the stock.
We expect more wastewater treatment order to be announced before next election and hence, players like VA Tech Wabag are expected to benefit from this process. This, in turn, could improve valuations of the company and hence, valuing the company at 15x on FY20E earnings of Rs 48.1, we have arrived a target price of Rs 722, potential upside of 31% from Rs 550. We have ‘BUY’ rating on the stock.
3:05 PM
Edelweiss on HUL
We envisage HUL to be key beneficiary of anticipated rural recovery and herbal push. We estimate better-than-expected volume growth (trend too indicates the same) and with rural revival in the offing, we retain our target multiple of 47x and arrive at target price of rs 1,518 on FY20E EPS. Maintain ‘HOLD/Sector Performer’ since at the current market price, the stock offers limited upside
We envisage HUL to be key beneficiary of anticipated rural recovery and herbal push. We estimate better-than-expected volume growth (trend too indicates the same) and with rural revival in the offing, we retain our target multiple of 47x and arrive at target price of rs 1,518 on FY20E EPS. Maintain ‘HOLD/Sector Performer’ since at the current market price, the stock offers limited upside
3:04 PM
Kotak Securities on Indian economic growth
Upward revision of CSO’s first advance estimate of Real GDP and GVA growth affirms visible signs of an underlying improvement in the economy. The pickup in the quarterly GVA growth was largely witnessed in manufacturing, construction and agriculture. We expect the economy to recover to 7.1% in FY2019. In the backdrop of a gradual recovery, we expect RBI to maintain status quo at least through 1HCY18 while closely assessing the upcoming inflation prints
Upward revision of CSO’s first advance estimate of Real GDP and GVA growth affirms visible signs of an underlying improvement in the economy. The pickup in the quarterly GVA growth was largely witnessed in manufacturing, construction and agriculture. We expect the economy to recover to 7.1% in FY2019. In the backdrop of a gradual recovery, we expect RBI to maintain status quo at least through 1HCY18 while closely assessing the upcoming inflation prints
3:03 PM
Etihad Airways may sell its entire 24% stake in Jet Airways: CAPA
Abu Dhabi-based Etihad Airways may sell its entire 24 per cent stake in Jet Airways by the third quarter of FY 2019 as it redraws its growth strategy, aviation consultancy CAPA said in a report.
The CAPA report has been prepared for private circulation and is not available on its website. The consultancy tweeted today “CAPA research indicates that Etihad may divest its 24% stake in @jetairways, possibly by Q3 of FY2019. This could lead to a rationalisation of capacity between India and the Gulf, particularly Abu Dhabi.” READ MORE
2:57 PM
ONGC seeks shareholders' approval for HPCL deal worth Rs 369.15 bn
State-owned Oil and Natural Gas Corp (ONGC) has sought shareholder approval for its decision to buy government's 51.11 per cent stake in Hindustan Petroleum Corp Ltd (HPCL) for Rs 369.15 bn.
With government also being a majority shareholder in ONGC, the acquisition fell in the definition of related party transaction for which shareholder nod is needed as per law, the company said in a shareholder notice seeking approval for the deal through a postal ballot. READ MORE
2:42 PM
Top Sectoral loser: Nifty PSU Bank index
Topics :
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Mar 01 2018 | 3:30 PM IST
