Markets extend gains for 3rd session; Sensex up 214 pts, Nifty ends at 9859

All that happened in Tuesday's session

10:18 AM

IPO fundraising scales a new high

 

Seventeen companies have raised Rs 25,500 crore through their initial public offerings (IPOs) in the first half of FY18 — the highest-ever mobilisation by IPOs in the first half of any financial year, according to data provided by Prime Database. The previous best was in the first half of FY08, when Rs 21,243 crore was raised.

 

According to market players, the momentum would stay as the pipeline of companies waiting to hit the market remains strong. READ MORE

9:56 AM

Interview of the day

 

Current valuations do not reflect underlying economic reality: Ambit Capital

 

It was a roller-coaster week for the markets, amid talk of a fiscal stimulus by the government. Saurabh Mukherjea, chief executive officer, and Prashant Mittal, strategist, at Ambit Capital said that the recent flows into equity mutual funds are largely speculative in nature and pose a risk of reversal. Click here for full interview

Saurabh Mukherjea, chief executive officer, and Prashant Mittal, strategist, at Ambit Capital

9:44 AM

Are mutual fund flows into equities at an inflection point?

 

The equity market rally thus far this financial year (H1FY18) in the absence of a meaningful pick-up in earnings has been fuelled by the gush of liquidity, especially by the mutual funds, which have invested around Rs 70,500 crore during this period. This is five times higher than what they had invested in the corresponding period last fiscal.

 

While most of this money has found its way into the mid-and the small-cap segments of the market, analysts have now started to worry about how long can this flow continue in the absence of a pick-up in corporate earnings and a healthy growth in the economic activity. READ MORE

9:35 AM

Sectoral Trend

Source: NSE

9:31 AM

Tata Motors top gainer

Tata Motors gained 5% after the company on Sunday reported a 25% increase in domestic sales at 53,965 units in September.

 

The company had sold 43,031 units in September 2016, Tata Motors said in a statement.

9:27 AM

Rcom slips

Rcom fell over 6% after it called off merger with Aircel citing legal and regulatory uncertainties, and various interventions by vested interests, that have caused inordinate delays in receipt of relevant approvals for the proposed transaction.

9:23 AM

Top gainers and losers on BSE Sensex

Source: BSE

9:21 AM

Broader Markets

The broader markets outperformed the frontline indices with BSE Midcap and BSE Smallcap up 1.1% and 0.9% respectively

9:19 AM

Markets at open

Benchmark indices open higher with Nifty50 trading above 9,850 ahead of the RBI policy review that kicks off later in the day. At 9:178 am, the S&P BSE Sensex was trading at 31,515, up 231 points while the broader Nifty50 index was trading at 9,878, up 90 points.

9:11 AM

Nifty, Nifty Bank outlook by Devang Shah

 

Short-term outlook for the market remains negative till Nifty trades below 10,095 levels and is expecting target in the range of 9550-9450 levels in short term.Medium term outlook for the market remains positive till Nifty trades above 8968 levels and is expecting targets in the range of 12000-12200 levels in medium term.

 

Nifty Bank also achieved short-term target levels as expected earlier. It made a low of 23,609.10 levels so far in this correction. Short-term trend remains down till it trades below 24,765 levels and is expecting targets of around 22,800-23,000 levels in this correction. 

Click here for technical recos

9:08 AM

GST composition scheme takes a quantum leap

 

Availing of the benefits of a flat tax rate and easier compliance, the number of businesses opting for the composition scheme under the goods and services tax has gone up by 50 per cent. 

 

About 540,000 taxpayers have opted for the scheme under the new window of about 14 days till September 30, compared to one million as of August 16, the earlier deadline. READ MORE

9:06 AM

Sebi move to defer loan default disclosure may stump traders

 

With the Securities and Exchange Board of India (Sebi) deferring the implementation of a new rule mandating India Inc to disclose any loan default within 24 hours two days before its implementation, many traders are likely to be caught on the wrong foot.  READ MORE

9:04 AM

Stock recommendations by Angel Broking

 

FDC 

                                                                                           

View: Bullish

Last Close: Rs 186.60

 

After a long consolidation, the stock managed to show some strength after breaking above the daily ’89 EMA’ level of 180 convincingly. The volume activity indicates massive buying interest among market participants, which is an encouraging sign for the stock. Importantly, during the recent corrective move in the index, the stock stood firm and maintained its positive territory. Hence, we recommend buying this stock at current levels for a target of Rs 200 over the next 14-21 sessions. The stop loss now should be fixed at Rs 179.

Click here for more

9:01 AM

Nifty outlook by Angel Broking

 

This week, somehow bulls managed to defend 9685; but, going ahead, we do not expect the same kind of strength to be infused in the market. You would have in between rebounds; but, one needs to understand that the short term tide has turned and any relief rally in coming days is likely to get sold into. 

 

Going ahead, 9854 – 9921 would be seen as a sturdy wall for the index. On the flipside, we may see index sliding below 9685 to test lower levels of 9640 – 9560 in days to come. Traders are advised to stay light and not to get carried away by such bounce backs.

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8:58 AM

Technical calls from Prabhudas Lilladher:

 

BERGER PAINTS - BUY    

CMP: Rs 245.10      

TARGET: Rs 272      

STOP LOSS: Rs 230

 

PIDILITE INDUSTRIES - BUY      

CMP: Rs 794.50      

TARGET: Rs 860      

STOP LOSS: Rs 765

 

ASHOK LEYLAND - BUY      

CMP: Rs 123.10       

TARGET: Rs 136     

STOP LOSS: Rs 114

Click here for rationale