MARKET WRAP: Sensex slips 45 pts, RIL falls 2.75%; Rupee hits all-time low

Among sectoral indices, the Nifty Pharma index rose 2.7 per cent led by a rise in Lupin and Dr. Reddy's Laboratories. The Nifty IT index, too, settled 1.8 per cent higher.

11:42 AM

Elara on L&T Technology Services

We assign a new target multiple of 26x, higher than the 25x we have assigned for TCS, given broad revenue momentum, depth of management team and positive industry outlook that lead us to expect a very long runway of growth beyond the USD1bn targeted in FY21. We arrive at a new target price of Rs 1,840 on 26x (vs 21x earlier) March 2021E P/E (vs INR 1,490 earlier). We reiterate our Accumulate rating on the stock.

11:40 AM

HDFC Securities on rupee

Indian Rupee has depreciated around 11% year to date. Higher crude oil prices, demand from defense and oil marketing firms have contributed to the latest bout of weakness. Rupee was overvalued on trade weighted real effective exchange rate. We are not overly concerned about the rupee beyond 72 level. Robust FDI flows in e-commerce companies, healthy forex reserves may limit the downside

11:39 AM

Morgan Stanley on markets

Our core view remains risk and EM bearish. The US yield curve has diverged from US equities, which is inherently unsustainable. "Low quality" flows out of EM and into US money markets where high risk-adjusted returns are increasingly attractive have created a concentration of liquidity in the US at the expense of the RoW, explaining diverging global volatility trends and the continued bid for USD-denominated assets.

11:32 AM

Improving outlook leads to re-rating for Balkrishna Industries, stock gains

The stock of Balkrishna Industries has gained over 37 per cent in the last two months, on strong June quarter results and expectations of an uptick in global demand for off-the-road tyres. Brokerages have re-rated the stock after the quarterly results, given they expect robust volume growth and low-cost operations to reflect both on revenue and earnings trajectory over the next two years. READ MORE

11:15 AM

IPO market comes to a temporary standstill as firms rush to update results

The initial public offering (IPO) market has come to temporary a standstill despite improvement in market liquidity and buoyancy in equities. Investment banking sources said a rule pertaining to disclosure of quarterly numbers has put several IPOs on hold.

 

According to the regulatory framework, a company cannot launch an IPO if the quarterly results disclosed in the offer document are more than two quarters old. READ MORE

11:03 AM

IT indices hit new high on weak rupee; TCS, Infosys hit fresh highs

Shares of information technology (IT) companies continued their upward journey with Nifty IT and the S&P BSE IT index hitting their respective new highs on weak rupee against the US dollar.
 

Nifty IT index (15,796) and the S&P BSE IT index (15,578), up nearly 2% each have touched new high on Friday. READ MORE

10:48 AM

Asian Paints: Rural demand revival, new capacities should drive volumes

There is little doubt that consumer firms are in a sweet spot, with improving demand. But with reviving rural demand, some companies will perform even better.

 

Asian Paints, for instance, which has underperformed its smaller peer Berger Paints in the past due to subdued rural environment, is one of those expected to regain its charm. While Asian Paints’ stock has risen 19 per cent in the last two years, Berger Paints is up 29 per cent, narrowing the valuation gap with the paints’ leader. READ MORE

10:32 AM

Analysts cautious on road construction stocks despite govt's infra push

Construction of roads across the country has yet again assumed importance, with the latest Reserve Bank of India’s (RBI) annual report for 2017–18 expecting the economy to look up further, aided partly by infrastructure expenditure. READ MORE

10:14 AM

YES Bank hits 8-week low; stock falls 14% in 8 days

Shares of YES Bank hit an 8-week low of Rs 338 per share, down 7% in early morning trade on the BSE on the back of heavy volumes. READ MORE

10:02 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,825.24	+135.14	+0.35
S&P BSE SENSEX 50	12,276.82	+51.75	+0.42
S&P BSE SENSEX Next 50	35,793.98	+297.37	+0.84
S&P BSE 100	12,062.21	+58.27	+0.49
S&P BSE Bharat 22 Index	3,762.01	+26.93	+0.72

(Source: BSE)

9:48 AM

Rupee hits 71-mark for first time ever, drops 26 paise against US dollar

The rupee slumped to a fresh record low of 71 against the dollar for the first time ever by falling 26 paise on persistent demand for the US currency amid rising crude prices.

 

At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 70.95 a dollar and slipped further to hit its lifetime low of 71 from its previous close of 70.74. READ MORE

9:32 AM

INTERVIEW OF THE DAY Market breadth has been really weak: Avendus Capital's Andrew Holland

It is time to be cautious as markets are ignoring risks on the horizon, says Andrew Holland, chief executive officer (CEO), Avendus CapitalAlternate Strategies. In an interview to Samie Modak, on the occasion of the launch of India’s first ESG (environment, social and governance)-based fund, Holland explains his investment strategy. READ MORE

Avendus Capital CEO Andrew Holland

9:20 AM

Nifty sectoral trend

9:19 AM

BSE Sensex: gainers and losers in opening trade

9:16 AM

Market at open

 

At 9:16 AM, the S&P BSE Sensex was trading at 38,644, down 46 points while the broader Nifty50 was ruling at 11,664, down 13 points.