Sensex snaps 3-day gaining streak to end 190 pts lower, Nifty at 9,912

All that happened in today's trade

9:51 AM

Nomura on economic data

 

India’s manufacturing PMI moved back into the expansion zone in August, led by a rise in domestic orders and output, suggesting that disruptions related to the new good and services tax (GST) seen in June and July appear to be getting resolved. 

 

Given that the Q2 GDP disappointment was mainly due to GST-effects on the manufacturing sector, this is good news as cash-intensive services sectors have already started to recover. We remain comfortable with our view that growth is headed higher and we expect real GDP growth to average 7.4% y-o-y in H2 2017 from 5.9% in H1 2017, as the economy recovers from the last nine months of disruptions.

9:46 AM

Dixon Tech, Bharat Road Network to launch IPOs this week, eye Rs 1,200 cr

Two companies -- Dixon Technologies and Bharat Road Network -- are headed to the market with their initial share sale offers this week to raise an estimated Rs 1,200 crore.

 

The IPOs of both will be open for subscription during September 6-8.

 

Dixon Technologies, a consumer electronics manufacturer, has fixed a price band of Rs 1,760-1,766 per share for its initial public offering (IPO), through which it aims to raise about Rs 600 crore. READ MORE

9:39 AM

Auto sales impact

Tata Motors which is on a turnaround drive, gained 0.83 %, as it saw its domestic commercial vehicles sales grow by 24.35% in the July-August period after a decline of 15.62% in the first quarter of the ongoing fiscal.

9:32 AM

Stocks in News

JM Financial fell 1.3% after it was appointed as the transaction advisor to the government's over Rs 37,000 crore stake sale in HPCL to ONGC. HPCL and ONGC were trading completely flat.

9:29 AM

Sectoral Trend

Most sectoral indices were trading in red dragged by banking and financial indices. Only Auto and metal indices were trading in green on NSE. 

9:20 AM

Top gainers and losers on BSE Sensex

Source: BSE

9:19 AM

Broader Markets

In broader markets, BSE Midcap and BSE Smallcap indices were trading completely flat, down 0.03% each

9:17 AM

Markets open

Domestic equity markets open on a flat note on Monday, tracking mixed global cues as markets remain jittery after fresh nuclear test by North Korea and claims that it tested a hydrogen bomb over the weekend.

At 9:17 am, the S&P BSE Sensex was trading at 31,839, down 53 points while the broader Nifty50 index was ruling at 9,968 down 6 points.

9:15 AM

Jan Aushadhi: Can it disrupt India’s $15 billion pharma market?

 

Started in 2008 but renewed recently by PM Modi, Jan Aushadhi is a Government of India initiative to promote quality generic-generic drugs at affordable prices. This scheme faced supply-related issues earlier which are being addressed by the current government. Drug prices under this scheme are 50-90% lower as compared to those of branded generic medicines. 

 

Our recent visit to one such Jan Aushadhi store in Mumbai suggests increasing acceptance for this scheme. If the model scales up and there is a shift from brands towards generics, then it could be a cause of concern for the major India-focussed pharma players.

 

(Source: CLSA report)

9:13 AM

Moody's on NTPC

 

Moody's Investors Service has said that the the Government of India's (Baa3 positive) sale of its 6.6% stake in NTPC Limited (Baa3 positive) has no impact on the company's Baa3 issuer rating.

 

After the sale, the government will continue to hold a majority stake of 63.1% in NTPC. The company's ratings remain supported by its strategic importance to the Indian economy, given its position as India's largest power generation company. NTPC's Baa3 issuer rating reflects its baseline credit assessment (BCA) of baa3. The rating does not factor in any uplift from the government due to the high baa3 BCA relative to the Baa3 sovereign rating.

9:11 AM

Nifty Outlook by Devang Shah

 

Short-term outlook for the market remains positive till Nifty trades above 9,685 levels and is expecting target of 10,300-10,500 levels in the short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and is expecting targets in the range of 12,000-12,200 levels in the medium term.

 

Stock Picks:

 

L&T – BUY

CLOSE – Rs 1139.70

TARGET – Rs 1170/1200

 

GODREJ INDUSTRIES - BUY

CLOSE: Rs 625

TARGET: Rs 650/680

CLICK HERE FOR MORE

9:11 AM

Risk-reward is unfavourable for equities in the near-term: Abhay Laijawala of Deutsche Equities India CLICK HERE FOR THE FULL INTERVIEW

Abhay Laijawala, managing director and head of research, Deutsche Equities India

9:09 AM

We are bullish on India in medium to longer term: Hugo Erken, Jan Lambregts  CLICK HERE TO READ THE FULL INTERVIEW

9:08 AM

Market fundamentals

 

While we continue to remain optimistic in the long-term, we expect continued volatility in the short-term with downward bias till October end. We expect the primary markets to succumb to the liquidity pressures soon in terms of steep fall in valuation multiple of forthcoming IPOs and also newly listed-IPOs. We advice those investors, who were lucky to make substantial profits in the recently listed-IPOs to be smart and take out the profits from the over-valued stocks

 

(Source: G.Chokkalingam, Founder & Managing Director, Equinomics Research)

9:06 AM

Top technical calls from Prabhudas Lilladher:

 

BUY AMARA RAJA BATTERIES       

CMP: Rs 800.75        

TARGET: Rs 865       

STOP LOSS: Rs 760

 

BUY BEML       

CMP: Rs 1846.30        '

TARGET: Rs 2000      

STOP LOSS: Rs 1730

 

BUY INDIGO       

CMP: Rs 1255.20     

TARGET: Rs 1365     

STOP LOSS: Rs 1180

Click here for rationale