MARKET WRAP: Indices at new high; Sensex up 442 pts, Nifty hits 11,700
Benchmark indices ended at an all-time closing high on Monday, boosted by gains in bank stocks
 "Markets, Stocks, Shares")
A share broker monitors market fluctuation
10:45 AM
ICICI Prudential MF sells I-Sec shares and starts paying back investors
ICICI Prudential Mutual Fund has started the process of crediting back to the five schemes that had invested Rs 2.4 billion in ICICI Securities on the last day of the latter’s Initial Public Offer (IPO) of equity.
The matter had come under the scanner of the markets regulator, Securities and Exchange Board of India (Sebi). READ MORE
10:30 AM
Sebi planning to deploy technology to beef up monitoring activities
Eyeing a major technological leap in its surveillance and investigation functions, markets watchdog Sebi plans to build a private data storage cloud, automate its inspection of brokers and make greater use of data analytics.
Besides, the regulator is looking to put in place new and advanced software tools to help in its monitoring of mutual funds and for sharing of information with other regulators. READ MORE
10:15 AM
Infosys gains on fixing record date for 1:1 bonus
Shares of Infosys was up 1% to Rs 1,397 on the BSE in early morning trade after the information technology (IT) firm said it has fixed September 5, 2018 as record date for the purpose of allotment of bonus shares/stock dividend. The stock will turn ex-date for bonus shares on September 4, 2018.
The stock of Infosys had underperformed the market in last week, by falling 3.6% after the company’s chief financial officer (CFO) MD Ranganath decided to leave the company. READ MORE
10:00 AM
Market Check
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 38,601.02 | +349.22 | +0.91 |
| S&P BSE SENSEX 50 | 12,207.39 | +104.47 | +0.86 |
| S&P BSE SENSEX Next 50 | 35,017.59 | +147.13 | +0.42 |
| S&P BSE 100 | 11,964.53 | +94.53 | +0.80 |
| S&P BSE Bharat 22 Index | 3,712.13 | +41.14 | +1.12 |
9:50 AM
Gold close to bottoming out?
When there is excessive currency volatility, people turn to alternative investments. That's often precious metals or more recently, cryptocurrency. Fear of high inflation also leads investors to precious metals, or cryptocurrency. There is plenty of currency volatility at the moment, and the consensus is that it's likely to continue.
There are also inflation fears. Metals are up due to rising demand and crude oil is up due to fears of supply disruption as the US looks to sanction Iran. READ MORE
9:43 AM
Edelweiss on LIC Housing Finance
Though LIC Housing Finance’s (LICHF) Q1FY19 PAT came optically in line, operating metrics trends were below expectations, reflected in softer growth, NIMs and asset quality pressure. Key disappointments were: a) softer individual disbursements (mere 5% YoY) leading to sustained pressure on individual AUM growth (13% YoY); b) NIMs dipped QoQ despite PLR hike leading to sub 7% YoY NII growth; and c) GNPLs spiked to 1.2% with rise in individual and corporate segments.
Despite the soft core growth momentum, we believe investment in marketing offices, traction in affordable housing and recent PLR hikes will boost momentum going forward. We estimate earnings CAGR of >18% over FY18-20 leading to 17-18% RoE. Maintain ‘BUY’.
Though LIC Housing Finance’s (LICHF) Q1FY19 PAT came optically in line, operating metrics trends were below expectations, reflected in softer growth, NIMs and asset quality pressure. Key disappointments were: a) softer individual disbursements (mere 5% YoY) leading to sustained pressure on individual AUM growth (13% YoY); b) NIMs dipped QoQ despite PLR hike leading to sub 7% YoY NII growth; and c) GNPLs spiked to 1.2% with rise in individual and corporate segments.
Despite the soft core growth momentum, we believe investment in marketing offices, traction in affordable housing and recent PLR hikes will boost momentum going forward. We estimate earnings CAGR of >18% over FY18-20 leading to 17-18% RoE. Maintain ‘BUY’.
9:36 AM
Interview of the day Hard to see participants increasing exposure to mid-caps: Ambit Capital MD
The markets put aside global concerns and continued their movement upwards last week. PRAMOD GUBBI, managing director and head of institutional equities at Ambit Capital, tells Puneet Wadhwa that due to India-specific macro concerns, global liquidity tightening and political risks, foreign flows will likely be neutral to negative going ahead. Read full interview here
9:24 AM
Sectoral Trend: All indices trade in green
9:20 AM
Top Sensex gainers and losers
9:17 AM
Markets at Open
At 9:17 am, the S&P BSE Sensex was trading at 38,499, up 247 points while the broader Nifty50 index was ruling at 11,633 up 76 points
At 9:17 am, the S&P BSE Sensex was trading at 38,499, up 247 points while the broader Nifty50 index was ruling at 11,633 up 76 points
9:03 AM
Markets at pre-open
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 38,376.62 | +124.82 | +0.33 |
| S&P BSE SENSEX 50 | 12,144.34 | +41.42 | +0.34 |
| S&P BSE SENSEX Next 50 | 34,966.52 | +96.06 | +0.28 |
| S&P BSE 100 | 11,909.25 | +39.25 | +0.33 |
| S&P BSE Bharat 22 Index | 3,689.93 | +18.94 | +0.52 |
8:59 AM
Top trading ideas by Devang Shah
DHFL - BUY
CLOSE – Rs 655.50
TARGET – Rs 700-740
DHFL closed the weekly in negative territory. Its consolidated in a narrow range during the week. Its daily momentum indicators are in BUY. It is trading above 20DMA. One can BUY with a stop loss of Rs-626 for the target of Rs 700-740 levels in short-term.
8:53 AM
Currency watch by Motilal Oswal Research
Rupee rose following weakness in the dollar against its major crosses and ahead Fed chairman statement at the Jackson Hole Symposium. In the recent past, rupee has been under pressure primarily on back of global factors than domestic factors. Broad dollar strength has been one of the major factors that led to weakness in major Asian currencies and rupee has been one of the weakest of the pack.
Data released by RBI showed FX reserves for the week ended Aug,24 remained more or less unchanged compared to previous week at $400.84 billion. Today, USDINR pair is expected to open at 69.85(Aug) and expected to quote in the range of 69.60 and 70.05.
Rupee rose following weakness in the dollar against its major crosses and ahead Fed chairman statement at the Jackson Hole Symposium. In the recent past, rupee has been under pressure primarily on back of global factors than domestic factors. Broad dollar strength has been one of the major factors that led to weakness in major Asian currencies and rupee has been one of the weakest of the pack.
Data released by RBI showed FX reserves for the week ended Aug,24 remained more or less unchanged compared to previous week at $400.84 billion. Today, USDINR pair is expected to open at 69.85(Aug) and expected to quote in the range of 69.60 and 70.05.
8:50 AM
Nifty outlook by Devang Shah
The short-term outlook for the market remains positive till Nifty trades above 10,929 levels and expecting targets in the range of 11,750- 11,800 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9,951 levels and expecting targets in the range of 12,500-12,800 levels in the medium term. READ MORE
8:49 AM
ICICI Securities on Somany Ceramics
We believe Somany would be a long term beneficiary of e-way bill & GST implementation as it would reduce the pricing differential between organised & unorganised tiles.
With stabilisation of gas prices, the company’s enhanced focus on improving value added product mix (rising share of Sanitaryware and bath fitting business) and recent price hike of 1-1.5%, we expect Somany’s EBITDA margins to improve 60 bps to 11.1% over FY18-20E. Consequently, Somany’s bottomline is expected to grow by 16.1% YoY to | 104.4 crore. Currently, the stock is trading at 20x FY20E EPS.
With stabilisation of gas prices, the company’s enhanced focus on improving value added product mix (rising share of Sanitaryware and bath fitting business) and recent price hike of 1-1.5%, we expect Somany’s EBITDA margins to improve 60 bps to 11.1% over FY18-20E. Consequently, Somany’s bottomline is expected to grow by 16.1% YoY to | 104.4 crore. Currently, the stock is trading at 20x FY20E EPS.
Strategy: Buy Somany Ceramics in the range of Rs 480-492 for target price of Rs 575.00 with a stop loss of Rs 445.00. Time Frame: Six months
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First Published: Aug 27 2018 | 8:15 AM IST
