MARKET WRAP: Indices settle lower on weak rupee; TCS m-cap at Rs 8 trillion

In individual stocks, banking shares such as HDFC Bank, State Bank of India (SBI), IndusInd Bank and ICICI Bank fell in the range of 1 per cent to 3.3 per cent.

9:28 AM

Sector watch: Metals

Aluminium (Al) has emerged as the best-performing base metal year to date owing to continued disruptions in supply chain for both Al and alumina.  We expect the Al price to be supported by uncertainty pertaining to: 1) tariff implementation; 2) extent of production cuts in China; and 3) Rusal sanctions. Besides, cost-push from alumina (again at a record 27% of LME Al) and thermal coal (up 13% YTD) is expected to keep capacity expansion/ramp-up in check.

While headway is possible for some of these issues, we believe that risk-reward in the near term favours integrated players such as Hindalco, Rio Tinto and Alcoa. Maintain ‘BUY’ on Hindalco.

(Source: Edelweiss Securities)

9:23 AM

BOND ALERT 10-year bond yield at 3-month high of over 8%

9:21 AM

ICICI SECURITIES' MARKET VIEW

We expect the Nifty to enter consolidation in the range of 11760–11470 to work off the overbought situation. We believe such a consolidation would help the Nifty to form a higher base that would set the stage for the next leg of the up move. While the benchmarks enter consolidation, we believe broader markets consisting of Nifty midcap and small caps are likely to outperform as both indices have broken out of bullish reversal patterns.

Therefore, we advise investors to participate in the broader market outperformance through quality midcap companies in coming sessions. In coming session, holding above last session low (11567) would keep pullback option open or else continuance of lacklustre move amid stock specific action.

9:20 AM

Nifty sectoral trend

9:18 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 38,390, up 77 points while the broader Nifty50 was ruling at 11,599, up 16 points.

9:13 AM

Stocks in news 

 

·         State Bank of India to offer loans for repairs and renovation of homes in Kerala at 8.45%. 

 

·         Jet Airways’ long-term rating cut to ‘BB’ from ‘BB+’ at ICRA.

 

·         MTNL's plans to seek approval of shareholders for raising authorised share capital from Rs 800 crore to Rs 10,000 crore and borrowing powers by almost 40% will aid the state-owned corporation's 4G plans and provide it the firepower to compete in the market, its chairman PK Purwar has said. 

 

·         Hotel Leela Ventures clarifies that is evaluating various options to reduce debt. 

 

·         VST Tillers August sales data: Power tillers sales up 1.1% at 1,646 units versus 1,628 units and tractors sales down 49.7% at 517 units versus 1,028 units.

 

·         Yuken India fixes September 14 as the record date for its bonus issue. The ratio for this issue is set at 3:1.

 

·         Persistent Systems’ U.S. arm acquires 100% stake in Herald Technologies for $5.2 million. 

 

·         GTL Infrastructure’s certain distressed loans have been brought by Bank of America Merrill Lynch and Edelweiss Asset Reconstruction Co. for around $197 million. 

 

·         Muthoot Finance to consider raising Rs 5,000 crore vis non-convertible debentures.

 

·         Maruti Suzuki: Parent Suzuki aims to treble sales volume by 2030 in India, retain 50% of Indian car market 

 

(Source: IIFL report)

9:11 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

Weakness has set into the market and currency. Despite beginning on a positive note, the market succumbed to selling pressure in the closing hours of trade on Monday. Selling was seen in FMCG, banks, IT, energy and pharma. The Nikkei India Manufacturing Purchasing Managers' Index fell to 51.7 in August, from 52.3 in the previous month.

The outlook is a subdued start. Foreign investors and domestic funds were net sellers on Monday. Austerity measures in Argentina are being watched closely. Asian shares are trading mixed. The US market was closed for Labor Day. Automobile companies posted a mixed set of sales numbers for August. Sales of Maruti Suzuki were hit due to floods in Kerala, while Tata Motors and M&M witnessed strong growth. The Indian rupee closed at another record low of 71.21 to the dollar.

 

9:04 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,477.06	+164.54	+0.43
S&P BSE SENSEX 50	12,185.00	+52.23	+0.43
S&P BSE SENSEX Next 50	35,417.58	+58.41	+0.17
S&P BSE 100	11,966.52	+46.47	+0.39
S&P BSE Bharat 22 Index	3,725.12	+15.09

9:04 AM

NEWS ALERT Rupee at fresh record low of 71.32 per dollar

9:03 AM

NEWS ALERT SEBI: Highly irresponsible for AMRI to claim $75 billion FPI investment will move out because of SEBI's circular issued in April 2018.

9:02 AM

MUST READ FPIs ring alarm bells on Sebi ownership notice; $75 bn assets could be hit

Foreign portfolio investors (FPIs) have upped their ante against a circular issued by the market regulator, Securities and Exchange Board of India (Sebi), on beneficial ownership of offshore funds. At least a dozen FPIs, including Amansa Capital, Helios and Morgan Stanley Asset Management — which operate from outside India but have links to the county — wrote to the prime minister, finance minister and Sebi, saying that the move will hit a third of the overseas assets in the country READ MORE HERE

Illustration by Ajay Mohanty

8:55 AM

10-year bond yield touches 8%, rupee falls to 71.18 against dollar

 

The 10-year bond yields touched 8 per cent for the first time since December 2014, while the rupee hit a record low at 71.18 against the dollar even as the local equities fell sharply on Monday.

 

The bond market has started showing some fatigue on prospects of the rising supply of paper. The second half borrowing, the calendar for which would come by the month end, is expected to be heavy from the Centre and states combined, and higher growth numbers also mean the central bank may find it encouraging to raise rates. READ MORE

8:50 AM

Top trading ideas by Prabhudas Lilladher: Buy HPCL

BUY HPCL

CMP: Rs 257.50

TARGET: Rs 290

STOP LOSS: Rs 243

 

The stock has made a double bottom formation pattern in the daily chart at 250 levels and currently, a revival indication is witnessed and we anticipate a further rally from here on to scale till 285 -290 levels in the coming days. The RSI also has indicated a trend reversal from the oversold zone and has signaled a buy. With the chart looking attractive and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 290 keeping a stop loss of 243.

Click here for more

8:45 AM

Nifty outlook by Prabhudas Lilladher for today

Nifty on daily chart forms a bearish engulfing candle and also a trend line break brings in resistance at 11,750 levels for now, also RSI being at 60 still brings in hope for a bounce. Else market would witness a further corrective move to the level of 11,500-11,400 levels. The support for the day is seen at 38,080/11,520 while resistance at 38,530/11,640. Bank Nifty would have a range of 27,580-28,040. Most of the sectors have shown a good run up, so now some profit booking cannot be ruled out.