MARKET WRAP: Sensex slips 174 pts, Nifty at 11,692 as Rupee hits record low

In individual stocks, oil-to-telecom giant Reliance Industries (RIL) settled 1.8 per cent lower at Rs 1,294 level on the BSE.

9:59 AM

F&O watch: Rollover stats

Nifty also saw higher than the average rollovers of 37% (average rollovers of 31% in the last three series). Nifty future holds an OI of 34.65mn shares (INR 407bn) as compared to 29.3mn shares (INR 326bn) on D-2 of June expiry. Nifty futures roll levels went further up to 36-38bps (cost to long roller adjusted to dividend of 7 points).

Around 61.8k Nifty contracts were rolled while ~9k contracts were unwound in the near month. Rollover activity saw pick up in FMCG (24%/45%), Metals (53%/33%) and IT (48%/29% on the D-2. Counters where rolls have picked up are ONGC (58%/15%), HNDL (49%/14%) and Z (49%/16%)

(Source: Edelweiss report)

9:57 AM

Mid-cap stocks gain ground

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	WEIGHT IN INDEX (%)
APOLLO HOSPITALS	1220.00	46.15	3.93	11201.94	1.20
GRUH FINANCE	341.80	12.05	3.65	10511.89	1.13
GLAXOSMITH C H L	7682.95	238.55	3.20	9048.06	0.97
BHARAT FORGE	674.55	18.25	2.78	16959.81	1.83
CRISIL	1807.25	47.30	2.69	4163.90	0.45

9:51 AM

Q1 results: Jet Airways faces headwinds, struggles to control the flight

 

Jet Airways, which reported a muted June quarter performance, faces further headwinds given a seasonally weak September quarter, pricing pressures, and a weak balance sheet. On the operational front, the airline is trailing peers on both the passenger load factor (PLF) as well as profitability given costs are at least 25 per cent higher than low-cost competitors.

 

While its PLF is close to 80.4 per cent, peers IndiGo and SpiceJet have reported PLF higher by at least 10 percentage points. READ MORE

9:40 AM

Stocks in news

·         LIC will meet on Sept. 04 to consider acquiring 36 percent stake in IDBI Bank. 

 

·         Bharti Airtel plans to roll out 9,000 new sites and 4,150 kilometres of optic fiber for financial year 2018-19 in Rajasthan. 

 

·         Tech Mahindra’s certificate of authorisation for pre-paid card issuance gets cancelled by RBI. 

 

·         State Bank of India said that the appropriate authority has accorded approval to explore and initiate the process of divestment of its 3.9% stake in National Stock Exchange of India through secondary sale.

 

·         Tata Motors to showcase five new public transport vehicles at the bus and coach exhibition, Busworld India starting from Aug. 29. 

 

·         Lakshmi Vilas Bank received approval from IRDA to offer general insurance products. 

 

·         Vedanta awarded 41 out if the 55 oil and gas blocks which were auctioned by the government-under Open Acreage Licensing Policy, according to notice on Directorate General of Hydrocarbons’ website. 

(Source: IIFL report)

9:35 AM

ICICI Securities on Ambuja Cements

We maintain our CY18-CY19E estimates and introduce our CY20E numbers with 4% volume growth and EBITDA/te increase of 6% YoY to Rs1,000/te. We raise our target price to Rs270/share (earlier: Rs250/share) based on 12x Sep’20 EV/E (on half-yearly rollover). Maintain BUY.

9:30 AM

WEB EXCLUSIVE Buyback offers touch Rs 300 billion in three months

 

Buyback of equity shares has gathered pace with over a dozen firms approving proposals in the past three months. Including three Nifty 50 companies – Tata Consultancy Services (TCS), Larsen & Toubro (L&T) and HCL Technologies – the boards of total 13 firms have approved share buyback proposal worth of Rs 309 billion since June 2018. MphasiS, DCM Shriram, Just Dial, ICRA, Navneet Education and Mcleod Russel, too, approved buyback proposal, the CapitalinePlus data shows. READ MORE

9:20 AM

Nifty sectoral trend

9:19 AM

BSE Sensex gainers and losers in opening trade

9:17 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 38,916, up 19 points while the broader Nifty50 was ruling at 11,740, up 1 point.

9:02 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	39,080.98	+184.35	+0.47
S&P BSE SENSEX 50	12,350.98	+58.78	+0.48
S&P BSE SENSEX Next 50	35,144.21	+114.92	+0.33
S&P BSE 100	12,089.32	+53.62	+0.45
S&P BSE Bharat 22 Index	3,729.48	+17.92	+0.48

8:57 AM

Technical calls by HDFC Securities:

 

Buy FSL

CMP: Rs 72.60

Target: Rs 69

Stop loss: Rs 78

 

Stock price has broken out from the downward sloping trend line, adjoining previous two tops on the daily charts. Indicators like RSI and ADX have turned bullish on the daily and weekly charts. Flag Pattern breakout is observed on the weekly charts, indicating continuation of an uptrend. We recommend buying FSL for the upside target of 78, keeping SL at 69.

 

Click here for more

8:52 AM

Nifty outlook by HDFC Securities

 

Nifty continued its upward move with new all-time high of 11,760 and closed at 11,738. We believe that 11,768 is a crucial resistance to watch out for Nifty. Any level above 11,768 could extend the rally towards 11,999. As far as support is concerned 11,620 should be kept a stop loss in trading long positions. Nifty midcap and smallcap indices have not been able find their feet and therefore it is advisable to remain focused on Largecaps. BankNifty could see fresh momentum buying above 28,400.

8:49 AM

HSBC on Ujjivan

Our target price of Rs 370 (earlier Rs 329), implies downside of 1.5%; we upgrade the stock to Hold from Reduce. Key risks are (1) event risk in the microfinance segment, (2) a worse-than-expected impact from the transition to Ind-AS reporting from FY20e, (3) worse-than-expected pressure on margins due to rising rates, (4) worse-than-expected asset quality, (5) loss of key personnel, and (6) an inability to grow deposits.

8:47 AM

Edelweiss downgrades Jet Airways

We expect dual pressure on earnings as: a) oil price has jumped further by 5.3% QTD and 42% YoY. According to Dr Fesharakhi (renowned oil expert), oil could touch $100/bbl, which we believe could take further toll on profitability; and b) the exchange rate (INR/USD) continues to depreciate (down 4.0% QoQ), which again impacts earnings—a 10% rise in ATF price or INR depreciation will impact FY20E EBITDAR 23% each. In light of the adverse competitive scenario and tightening macros, we downgrade to ‘HOLD’.

8:46 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

A surge in metals, energy, IT and positive global sentiment due to the US-Mexico trade agreement kept indices upbeat on Tuesday. The rupee recovered a bit from record lows against the dollar. The outlook is a cautious start ahead of the F&O expiry tomorrow. Foreign investors and domestic funds offloaded stocks on Tuesday.

The market-wide rollovers and Nifty rollovers are well above their three-month average which is a healthy sign. The US indices closed flat. Whatever improvement could come in sentiment because of US-Mexico trade deal was swapped by fears about tariff deadline with China. Asian markets too are struggling for direction. JSW Steel will see some added interest as it is set to replace Lupin in the Nifty50 stock index on September 28