Markets snap 7-session rally; Nifty settles September series above 9,750

All that happened in today's trade

10:17 AM

Financials and Consumption Sectors to Gain Share 

 

Together the financials and consumer sectors could account for 63% of India's market by 2027, up from 47% currently, largely at the expense of global sectors such as software services, pharmaceuticals, materials and energy.

 

We forecast market capitalization of the financials sector to grow 4x from current levels, to $1.8 trillion in the next ten years

(Excerpt from Morgan Stanley report)

10:13 AM

GST – Arguably India's Most Important Reform Since the Early 1990s

 

GST implementation and digitization should help government finances: India's brand new Goods and Services Tax (GST), with its ability to simplify India's complicated indirect taxation system and lift government revenues, has the potential to boost growth. GST com- pletely alters the way government finances are managed in India.

 

Hitherto, tax collection in India was decentralized, while expenditure was centralized through the Planning Commission, which set expenditure priorities for the states. GST centralizes India's taxation in the hands of the Central Government, while the abolition of the

 

Planning Commission in 2014 had already set the stage for decentral-ization of expenditure to the state governments. This shift, in our view, will provide a major boost to Indian government finances.

(Excerpt from Morgan Stanley report)

9:56 AM

Recent approvals to help Glenmark Pharma scale up FY18 growth

 

The Glenmark Pharmaceuticals stock has gained over five per cent since its lows this month on brokerage upgrades, which highlight the upside from product launches in the US and the potential of out-licensing deals. 

 

Prior to the upgrades, the stock was under pressure, given the expectations of a drug price erosion of 10-15 per cent in FY18 and a falling contribution from the generic version of Zetia, a drug used to reduce cholesterol levels. Click here for full story

9:47 AM

MFs can use interest rate futures to hedge risks: Regulator

 

Providing more leeway, the Securities and Exchange Board of India (Sebi) on Wednesday allowed mutual funds (MF) to use interest rate futures (IRF) contracts to hedge risks from volatility in interest rates.

 

An IRF provides for future delivery of an interest- bearing security such as government bonds and such contracts provide an avenue to hedge against risks arising from fluctuations in interest rates.

 

“To reduce interest rate risk in a debt portfolio, mutual funds may hedge the portfolio or part of the portfolio (including one or more securities) on weighted average modified duration basis by using IRFs,” Sebi said in a circular. READ MORE

9:34 AM

Most top equity schemes pip benchmarks

 

Most of the top equity mutual fund (MF) schemes — which cumulatively account for a fourth of the industry’s assets — have done well this year compared to the benchmark BSE Sensex and the National Stock Exchange’s Nifty.

 

The average return for the top 10 equity diversified schemes (as of September 26) is 22.34 per cent. In comparison, the Sensex and the Nifty are up 18 per cent and 20 per cent (as of September 26) on a year-to-date basis. Their large assets under management (average Rs 16,000 crore) haven’t impacted their performance. READ MORE

9:27 AM

After falling nearly 3% yesterday, Nifty Realty was the top sectoral gainer, up over 1%

Source: NSE

9:22 AM

Sectoral Trend

Source: NSE

9:21 AM

Top Sensex gainers and losers

Source: BSE

9:19 AM

Broader Markets

In broader markets, both BSE Midcap and BSE smallcap indices were little changed 

9:18 AM

Markets open

Benchmark indices open flat tracking positive cues from the global markets but investors may remain cautious ahead of the September F&O expiry.

At 9:17 am, the S&P BSE Sensex was trading at 31,123, down 36 points while the broader Nifty50 index was ruling at 9,713, down 21 points

9:11 AM

Stock recos by Prabhudas Lilladher:

BUY DEEPAK NITRATE  

 

CMP: Rs 185.95      

TARGET: Rs 206     

STOP LOSS: Rs 174

 

The stock has been in a consolidation phase for some time at around Rs 175-180 and now it has given a breakout above the level of Rs 184 to indicate potential and strength to rally further in the coming days. The RSI indicator has shown a trend reversal recently and has signaled a buy in this stock. With tremendous rising volume witnessed, we recommend a buy in this stock for an upside target of Rs 206 keeping a stop loss of Rs 174.

Click for more recos

9:10 AM

Nifty view by Prabhudas Lilladher:

 

Nifty, after opening higher on Wednesday, witnessed heavy profit-booking and the fall intensified in the second half of the session to see a close below 9,750 level. The sentiment has turned down and pessimism has crept in and for Nifty the next major support would be at around 9,550 levels. However, the support for the day is seen at 9,680 while resistance is seen at 9,775.

9:08 AM

Top trading ideas for today's trade

 

eClerx - BUY

CMP: Rs 1226.70

Stop Loss: Rs 1169.30

Target: Rs 1320

 

Adani Ports (OCT Series) - SELL

CMP: Rs 374.8

Stop Loss: Rs 388.30

Target: 360

Click here for rationale

9:07 AM

Nifty Outlook by Sacchitanand Uttekar of Tradebulls

 

On the daily scale the occurrence of a Marubozu near the support zone of 9,740-9,700 can be considered as the much awaited selling climax awaiting confirmation in terms of price close above 9,820 in the coming 2-3 trading sessions. A follow through move beyond 9,700 on closing basis would negate the setup & serves a key support for the day. We expect the Sept series to conclude within the range of 9,690-9,810 zone. While any follow through action below 9700 could add another 100 odd points to its tally.

8:58 AM

Sebi may tighten MFs' risk monitoring practices

 

Increasing fears of debt default in Corporate India may prompt the Securities and Exchange Board of India (Sebi) to nudge the trustees and sponsors of asset management companies (AMCs) to play a more active role in managing risks.

The regulator is deliberating on making it mandatory for fund houses to form internal risk assessment committees comprising key AMC personnel and external consultants, according to two people familiar with the matter.  READ MORE