MARKET WRAP: Sensex falls 537 pts, Nifty ends at 10,975 as financials crack
In the broader markets, the S&P BSE MidCap index settled 2.4 per cent lower while the S&P BSE SmallCap index slipped 2.7 per cent on Monday.
 "Stock market")
10:11 AM
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Garden Reach IPO: Should you subscribe? What leading brokerages say
State-run Garden Reach Shipbuilders and Engineers will open its initial public offering for subscription from September 24 with a price band of Rs 115-118 per share. The subscription will end on September 26.
The public issue consists offer for sale of 2,92,10,760 equity shares by Government of India. The company aims to raise Rs 3.35 billion at the lower end of price band and Rs 3.44 billion at the higher end of the price band. READ MORE
Illustration: Ajay Mohanty
10:01 AM![]()
Market Check
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 36,669.57 | -172.03 | -0.47 |
| S&P BSE SENSEX 50 | 11,587.81 | -66.13 | -0.57 |
| S&P BSE SENSEX Next 50 | 32,638.81 | -491.70 | -1.48 |
| S&P BSE 100 | 11,326.33 | -80.32 | -0.70 |
| S&P BSE Bharat 22 Index | 3,561.19 | +2.05 | +0.06 |
(Source: BSE)
9:43 AM
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RBI, Sebi monitoring financial markets' developments, ready to take action
In a rare move, the RBI and Sebi Sunday said they are "closely monitoring" activities in the financial markets and ready to take appropriate actions, if required, following a sharp meltdown on Friday in equity and debt markets.
The regulators came out with separate but identical statements amid apprehensions about steep volatility in markets on Monday. READ MORE
9:31 AM
A sliding rupee, rising crude oil prices and trade war fears have dented market sentiment over the past few weeks. London-based Jan Dehn, head of research at Ashmore Group, tells Puneet Wadhwa that the company has cut its exposure in India over the past few months for tactical reasons. Click here to read more
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Interview of the day Markets are not going to fall much from here: Ashmore Group's Jan Dehn
A sliding rupee, rising crude oil prices and trade war fears have dented market sentiment over the past few weeks. London-based Jan Dehn, head of research at Ashmore Group, tells Puneet Wadhwa that the company has cut its exposure in India over the past few months for tactical reasons. Click here to read more
Jan Dehn, head of research at Ashmore Investment Management
9:22 AM
Nifty Fin Services index down 0.5%
9:20 AM
Sectoral Trend
9:19 AM
Top Sensex gainers and losers
9:17 AM![]()
Markets at open
At 9:17 am, the S&P BSE Sensex was trading at 36,772, down 69 points while the broader Nifty50 index was ruling at 11,111 down 39 points
At 9:17 am, the S&P BSE Sensex was trading at 36,772, down 69 points while the broader Nifty50 index was ruling at 11,111 down 39 points
9:04 AM![]()
Market at pre-open
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 36,813.81 | -27.79 | -0.08 |
| S&P BSE SENSEX 50 | 11,652.08 | -1.86 | -0.02 |
| S&P BSE SENSEX Next 50 | 33,180.31 | +49.80 | +0.15 |
| S&P BSE 100 | 11,407.57 | +0.92 | +0.01 |
| S&P BSE Bharat 22 Index | 3,564.96 | +5.82 | +0.16 |
(Source: BSE)
9:02 AM![]()
NEWS ALERT Rupee opens a tad at 72.48 against the US dollar, down 28 paise.
8:53 AM
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Buy Biocon for a target of Rs 730, stop loss at Rs 650: Prabhudas Lilladher
BUY BIOCON
CMP: Rs 676.90
TARGET: Rs 730
STOP LOSS: Rs 650
The stock has maintained its rising trend in spite of the weak market scenario maintain above the significant moving averages of 50DMA and 200 DMA and look poised for further still upward move in the coming days. The RSI is on the rise and with improving volume participation, we recommend a buy in this stock for an upside target of 730 keeping a stop loss of 650.
Click here for more
Click here for more
8:52 AM![]()
MARKET COMMENT Jagannadham Thunuguntla, Sr. VP and Head of Research (Wealth), Centrum Broking
In bond yield hardening and liquidity drying scenario, the first segment that will come under pressure would be NBFCs in general and Housing Financing Companies (HFCs) in particular. The very nature of HFCs is to have negative Asset-Liability-Mismatch (ALM) scenario wherein they liabilities (sources of financing) will have to re-priced multiple times during the life of assets (housing loans).
In an increasing interest rate scenario (such as current times), a higher proportion of shorter tenure funding against a higher proportion of long term assets, would be harmful. Further, with the events such as IL&FS default, the situation gets aggravated squeezing the liquidity from the money markets
In bond yield hardening and liquidity drying scenario, the first segment that will come under pressure would be NBFCs in general and Housing Financing Companies (HFCs) in particular. The very nature of HFCs is to have negative Asset-Liability-Mismatch (ALM) scenario wherein they liabilities (sources of financing) will have to re-priced multiple times during the life of assets (housing loans).
In an increasing interest rate scenario (such as current times), a higher proportion of shorter tenure funding against a higher proportion of long term assets, would be harmful. Further, with the events such as IL&FS default, the situation gets aggravated squeezing the liquidity from the money markets
8:51 AM![]()
Nifty outlook by Prabhudas Lilladher
Nifty has corrected by 7.5% from the peak of 11,750 levels, however, has recovered from the intraday low of 10866, but still no clarity on market bottoming out. 200 DMA lies at 10,750 levels with the RSI at 37. Bank Nifty too corrected by 11.8%, already broken the 200 DMA. The bias remains corrective until we see some signs of reversal. The support for the week is seen 36,060/10,900 while resistance is seen at 37640/11400. Bank Nifty would have a range of 24,830-26,380. OMCs are now showing some signs of reversal.
Nifty has corrected by 7.5% from the peak of 11,750 levels, however, has recovered from the intraday low of 10866, but still no clarity on market bottoming out. 200 DMA lies at 10,750 levels with the RSI at 37. Bank Nifty too corrected by 11.8%, already broken the 200 DMA. The bias remains corrective until we see some signs of reversal. The support for the week is seen 36,060/10,900 while resistance is seen at 37640/11400. Bank Nifty would have a range of 24,830-26,380. OMCs are now showing some signs of reversal.
8:47 AM![]()
IPO watch Aavas Financiers
(Source: IIFL report)
Aavas has achieved impressive scale and profitability since its inception. During this period the asset quality trends have improved too, notably the proportion of 2-year lagged NPAs and 1+ dpd loans. For loans disbursed over the past 24 months, 1+ dpd trends are even better than for overall portfolio, which bears testimony to its strong credit experience despite the regional diversification away from the home state of Rajasthan. Having grown the branch count by nearly 4x since FY16 and given its plans for further substantial addition, the asset growth should remain robust in coming years too.
The Rs4 billion IPO capital raise would not only support higher growth trajectory but would also facilitate a credit rating upgrade. Considering the long duration of borrowings, positive funding gap and low competitive pressure, Aavas should be able to maintain loan spreads even in a hardening rate environment. We see the business geared for 2.5% RoA and 18-20% RoE in the longer run. Post-money valuation of 3.9x P/ABV seems attractive for long term investors. We recommend Subscribe.
The Rs4 billion IPO capital raise would not only support higher growth trajectory but would also facilitate a credit rating upgrade. Considering the long duration of borrowings, positive funding gap and low competitive pressure, Aavas should be able to maintain loan spreads even in a hardening rate environment. We see the business geared for 2.5% RoA and 18-20% RoE in the longer run. Post-money valuation of 3.9x P/ABV seems attractive for long term investors. We recommend Subscribe.
(Source: IIFL report)
8:46 AM![]()
MARKET COMMENT Amar Ambabi, head of research, IIFL
That sinking feeling continues as investors brace to protect their portfolios. Last week’s crash has raised fears of a contagion spreading and causing more upheavals across asset classes. NBFCs will be watched closely even as other sectors could see collateral damage. The September F&O contracts roll over could add to the choppiness this week. Meanwhile, overseas investors have sold equities worth around USD 2.1bn in September.
The Reserve Bank of India announced that along with the Securities and Exchange Board of India, it is "closely monitoring recent developments in financial markets and are ready to take appropriate actions, if necessary". Asian shares are on shaky ground as China cancelled trade talks with the US. The outlook is a cautious start. Fitch Ratings raised India's growth forecast for FY19 to 7.8 pc, from the earlier 7.4 pc. The IPO of Garden Reach Shipbuilders and Engineers will open for subscription today
That sinking feeling continues as investors brace to protect their portfolios. Last week’s crash has raised fears of a contagion spreading and causing more upheavals across asset classes. NBFCs will be watched closely even as other sectors could see collateral damage. The September F&O contracts roll over could add to the choppiness this week. Meanwhile, overseas investors have sold equities worth around USD 2.1bn in September.
The Reserve Bank of India announced that along with the Securities and Exchange Board of India, it is "closely monitoring recent developments in financial markets and are ready to take appropriate actions, if necessary". Asian shares are on shaky ground as China cancelled trade talks with the US. The outlook is a cautious start. Fitch Ratings raised India's growth forecast for FY19 to 7.8 pc, from the earlier 7.4 pc. The IPO of Garden Reach Shipbuilders and Engineers will open for subscription today
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First Published: Sep 24 2018 | 8:07 AM IST
