MARKET WRAP: Sensex ends 140 pts down, FMCG stocks slip; Rupee hits new low

In sectors, the Nifty FMCG index slipped 0.9 per cent, weighed by fall in Godrej Consumer Products and Hindustan Unilever (HUL), which lost 2.7 per cent to end the day at Rs 1,606 levels.

10:50 AM

FMCG stocks: Fundamentals continue to be strong, but valuations too high

 

The BSE Fast-Moving Consumer Durables (FMCG) index fell 4.2 per cent in the last two sessions, on worries that valuations for the sector that has had a good run so far are in the bubble territory. The FMCG index surged over 19 per cent in 2018 (till August), outpacing the 13.5 per cent rise in the Sensex.

 

While most analysts believe the fundamentals continue to be strong, the concern is largely on absolute valuations and the premium the sector gets, as compared to the broader markets. READ MORE

10:40 AM

LIC may seek Sebi exemption for open offer to IDBI Bank shareholders

 

The government hinted on Tuesday that Life Insurance Corporation might seek an exemption from the Securities and Exchange Board of India (Sebi) from making an open offer to the minority shareholders of state-owned IDBI Bank, in which the insurer is set to buy a 51 per cent stake.

 

“They (LIC) are exploring an open offer. It will either be exemption, otherwise an open offer,” Subhash Chandra Garg, secretary, Department of Economic Affairs, who is also a member on the LIC board, told reporters. READ MORE

10:28 AM

RUPEE ALERT Rupee hits fresh low of Rs 71.74 against US dollar

10:16 AM

Muthoot Finance gains 6% post Q1 results

 

Muthoot Finance was trading higher by 6% at Rs 424 on the BSE in an otherwise weak market after the company reported a 43% year on year growth in net profit at Rs 4.92 billion during the quarter ended June 30, 2018 (Q1FY19). The non-banking finance company had a profit of Rs 3.45 billion during the same quarter of previous year. READ MORE

10:00 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,127.87	-30.05	-0.08
S&P BSE SENSEX 50	12,044.18	-17.52	-0.15
S&P BSE SENSEX Next 50	34,159.37	-141.27	-0.41
S&P BSE 100	11,784.52	-21.80	-0.18
S&P BSE Bharat 22 Index	3,646.16	-13.65	-0.37

9:45 AM

Infosys investors selling shares may have to shell out 4-5 times higher tax

 

Investors offloading shares of Infosys following allotment of bonus shares will have to pay four to five times higher tax than what they would have if they had sold the shares before the record date. At its meeting held on July 13, Infosys’ board had recommended a bonus issue of one equity share for every equity share held (1:1) on the record date of September 5.

 

The issue of bonus shares was to celebrate the 25th year of the company’s public listing in India and to improve liquidity. READ MORE

9:30 AM

Interview of the day Rupee fall a boon for IT and pharma stocks, says Saurabh Mukherjea

 

The sharp slide in the rupee will benefit stocks in export-oriented sectors such as information technology (IT) and pharmaceuticals, said Saurabh Mukherjea, founder of Marcellus Investment Managers. In an interview with Samie Modak during the CFA Society India’s third India Wealth Management conference, Mukherjea explains why the markets are set for an interesting nine months. Read full interview here

9:20 AM

Nifty sectoral trend

9:18 AM

BSE Sensex opening gainers and losers

9:16 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 38,181, up 23 points while the broader Nifty50 was ruling at 11,523, up 2 points.

9:11 AM

Market outlook by Nirmal Bang

Nifty is expected to open on slightly negative note and likely to selling pressure during the day. Nifty is facing a resistance of 11600-11640 levels whereas support lies at 11470-11440 levels. If Nifty fails to sustain the support levels then we may witness the extension of the selling pressure towards 11400/11370 levels

9:09 AM

Currency strategy by Motilal Oswal

9:07 AM

Antique Stock Broking on Mahindra & Mahindra

We believe MM's auto segment is on the cusp of a major transformation, with high probability of getting its product learning right with upcoming launches. Company's farm equipment division has been pioneer in the industry in terms of innovation/launches and profitability.

We maintain a Buy rating, with a SOTP-based target price of Rs1,057 (valuing the core automotive business to 15x FY20e EPS), as we believe earnings momentum is likely to be sustained with more upgrades from the street expected. Looking at MM's overall business strategy (in both automotive and farm equipment segments), we believe it is on the path of strong and secular growth trajectory for next few years

9:05 AM

F&O watch

Nifty index futures closed 0.59% lower at 11573.1 on Tuesday. Open interest addition was restricted to 74 thousand contracts while premium slipped marginally from 59.4 to 52.8. Nifty Call options continued to accumulate more positions compared to Put options and open interest addition was seen at 5% and 3% respectively, thus inducing a dip in PCR OI from 1.48 to 1.45. Volatility index continued its sharp rise and VIX closed at 13.78 compared to previous day's 13.39.

(Source: Geojit Financial)

9:03 AM

RUPEE ALERT Rupee opens firm, up 14 paise at 71.41/$