MARKET WRAP: HDFC twins drag Sensex; AMC stocks fall on Sebi's TER order

Catch all the live market actions here.

1:13 PM

MCX rises after Sebi allows foreign investors to trade in commodity market

Shares of commodity exchange MCX (Multi Commodity Exchange of India) surged as much as 4 per cent in the intraday trade on Wednesday after the markets regulator Sebi approved a proposal to allow foreign investors to trade in commodity derivatives market. READ MORE

12:59 PM

India mulls raising import duty on steel to support rupee: Sources

India's steel ministry has proposed increasing the effective import duty on some steel products to 15 per cent from current rates ranging from 5 per cent to 12.5 per cent, according to two sources and a government document reviewed by Reuters, as the country looks to support the rupee. READ MORE

Metal stocks on the rise

12:46 PM

Kotak Securities on logistics sector

Freight rates, an indicator of broad-based demand, are suggesting a big uptick in economic activity happening in recent months. The improved economic activity will eventually reflect in higher GST collections, a positive for India’s infrastructure capex cycle. Enablers are also in place for a steady increase in tax compliance in the key transportation segment, further boosting the case for GST collections over time. The related transportation ecosystem is ripe for disruption by those having a network of customers/vendors and inspiring trust. Advantage L&T, Container Corporation and Mahindra Logistics

12:32 PM

Board of Electrosteel Steels to consider proposal of delisting

The Board of Electrosteel Steels will meet on 24 September 2018 to consider and approve Company has received a letter dated 18.09.2018 from Vedanta Star ('Acquirer'), wherein the Acquirer has expressed its intention to acquire up to 1961,67,342 equity shares of the Co. representing approx.10% of the paid up share capital of the Co. held by the shareholders of the Company (other than the Acquirer) at a price of Rs 9.54 per equity shares calculated in terms of the Resolution Plan approved by the Kolkata Bench of NCLT vide its order dated 17 April 2018. READ MORE

12:14 PM

Sebi pares IPO listing time to 3 days from 6, clears UPI as payment option

To boost fund raising from markets, regulator Sebi has decided to reduce the time to list shares on stock exchange after initial public offerings to three days from six days.

 

The board of Sebi Tuesday cleared a proposal to introduce Unified Payments Interface (UPI) as an alternative payment option for retail investors buying shares in an IPO. READ MORE

12:01 PM

Market at noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,411.56	+120.89	+0.32
S&P BSE SENSEX 50	11,838.82	+39.30	+0.33
S&P BSE SENSEX Next 50	34,105.31	+225.25	+0.66
S&P BSE 100	11,610.76	+44.32	+0.38
S&P BSE Bharat 22 Index	3,590.43	+35.12	+0.99

(Source: BSE)

11:47 AM

Responded to Sebi showcause notice, but no settlement offer: ICICI Bank

ICICI Bank and its Managing Director & Chief Executive Officer Chanda Kochhar have replied to a show cause notice for alleged violation of listing disclosure norms, said market regulator Securities and Exchange Board of India (Sebi).

 

On May 23, Sebi had issued a show cause notice to ICICI Bank and Chanda Kochhar for violating disclosure norms in connection with the conflict of interest in business dealings of Chanda Kochhar’s husband Deepak Kochhar with Videocon Group. READ MORE

11:30 AM

Foreign companies get Sebi nod to hedge in commodity derivatives

Sebi has clarified that hedging cannot be for a period longer than their physical market exposure. Foreign entities that don’t have exposure in India’s physical market will also not be allowed. READ MORE

11:15 AM

RBI has the reserves, if not the will, to prop up the sagging rupee

India’s central bank has enough reserves to defend the rupee, according to the State Bank of India and Nomura Holdings Inc., as the currency shrugged off the government’s supportive measures to plunge to a fresh record.

 

The Reserve Bank of India can sell an additional $25 billion, at least, in the foreign-exchange market, SBI estimates, based on intervention patterns since the 1990s. READ MORE

11:04 AM

Top gainers in BSE 500:

COMPANY	PRICE()	CHG()	CHG(%)
DCM SHRIRAM	448.50	25.85	6.12
8K MILES	261.25	12.40	4.98
MUTHOOT FINANCE	463.00	19.50	4.40
MONSANTO INDIA	3145.00	131.00	4.35
T N NEWSPRINT	297.00	11.65	4.08

10:59 AM

Kotak Securities on Mirc Electronics

MIRC is trading at 30.4x and 16x FY19E and FY20E earnings respectively. The stock's valuation is at a discount to peers in the consumer durables space. One of the reasons being weak earnings numbers in recent quarters. We remain positive on the consumer durables demand growth story in India and in view of the adequate upside to our unchanged target price of Rs 31 (at 18x FY20E), move rating to BUY (Accumulate earlier)

10:58 AM

IDFC Securities on Dr Lal Path Labs

With scale-driven efficiencies inherent in diagnostics business, we expect economic gains to increasingly get concentrated with select large players and create multi-year growth stories. We see DLPL as one of the winners, given its proven execution capabilities and profitable business model (FY21E ROIC ~89%). We initiate coverage on the stock with an Outperformer rating. Change in government regulations, mainly price caps, remains a key risk to the business

10:57 AM

Jefferies on consumer sector

Consumer staples have seen a sharp re-rating in the past 18 months, driven by gradual demand uptick from depressed levels. We believe the up-cycle has played out and see limited scope for earning upgrades and PE re-rating in the context of rising input costs (crude and currency led) and bond yields. Given stretched valuations, we expect de-rating over the next 6-12 months. We remain cautious on the sector with select buys, viz, ITC, Dabur, Nestle and Asian Paints.

10:56 AM

Nomura on steel sector

We expect Indian steel demand to grow at 5-7% over the next decade driven by large-scale infra spending and consumption growth. Steel capacity expansion in FY18-21F likely to be limited, which will likely saturate capacity in next 3-4 years, in our view. Already in FY19 we are seeing steel demand growing faster than GDP.

10:55 AM

Edelweiss on Whirlpool

We recently interacted with Whirlpool of India’s (WHIRL) top brass during the AGM and plant visit. Three highlights: 1) WHIRL continues to focus on plugging gaps in portfolio both organically (by launching a product every two months) and inorganically (Elica PB acquisition). 2) Focus on expanding presence in semi-urban/rural regions, which are outgrowing urban areas (50% of revenue). 3) Cost control via rationalisation of warehouses and commencement of direct dispatch.

Management aims to improve competitive positioning through aggressive branding & marketing, expansion of distribution network (targeting 33% jump) and cost control. All of this would improve market share in our view. Maintain ‘BUY’ with target price of Rs 1,915.