MARKET WRAP: Sensex falls 509 pts, Nifty at 11,287 as rupee hits fresh low

In the broader markets, both S&P BSE MidCap and S&P BSE SmallCap ended 1.4 per cent lower.

11:30 AM

Sebi mulls allowing NRIs through FPI route after meeting specific KYC norms

 

The Securities and Exchange Board of India (Sebi) is looking at including non-resident Indians (NRIs) in the foreign portfolio investors quota. Sources said the regulator had written to the central government, seeking its opinion on this.

 

The move could open a new source for foreign inflows into the country, as NRIs are currently not big investors because of regulatory curbs. READ MORE

11:20 AM

Power cos gain post SC's stay on RBI circular

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)	VOLUME
TATA POWER CO.	76.30	73.70	2.60	3.53	242893
NLC INDIA	73.95	73.15	0.80	1.09	3506
RELIANCE INFRA.	469.50	464.60	4.90	1.05	131261
RELIANCE POWER	36.20	35.95	0.25	0.70	274532
NHPC LTD	25.35	25.20	0.15	0.60	30502
TORRENT POWER	254.55	253.10	1.45	0.57	45882

11:18 AM

NEWS ALERT

RBI's plea in SC to be heard in November

11:18 AM

NEWS ALERT

SC asks RBI, parties to maintain status quo with regard to insolvency proceedings against power cos

11:17 AM

NEWS ALERT

Relief for power cos: SC transfers all pleas filed before different HCs to itself in Power NPAs case

11:15 AM

Nifty FMCG index hits six-week low; ITC, Godrej Consumer down 2%

 

Shares of fast moving consumer goods (FMCG) companies were under pressure with Nifty FMCG index hitting its six week low, falling 8% so far in the current month on the National Stock Exchange (NSE) on valuation concerns.

 

ITC, Godrej Consumer Products, Colgate Palmolive (India), Hindustan Unilever (HUL), Marico and Jubilant FoodWorks were trading lower in the range of 1% to 3% on the NSE. READ MORE

11:00 AM

Beneficial ownership norms to hit global PEs due to 'disclosure' rule

 

Global private equity (PE) funds are likely to be among those most affected by the beneficial ownership norms notified by the Ministry of Corporate Affairs under Section 90 of the Companies Act, 2013.

 

According to the new rules, a company can suspend control rights on its shares if the PE fund does not disclose the beneficial owner. READ MORE

10:45 AM

INTERVIEW OF THE DAY Indian stocks are expensive; rupee can hit 100/$: Marc Faber

Oil prices, trade war fears and a plunging rupee has somewhat derailed the equity market rally in India over the past few weeks. MARC FABER, Editor and Publisher of ‘The Gloom, Boom & Doom Report’ tells Puneet Wadhwa that global stock and bond markets are in a bubble zone. Markets and central banks, he says, have not learnt any lessons from the 2008 financial crisis READ MORE HERE

Marc Faber

10:30 AM

More trouble for IL&FS as ICRA downgrades rating for its various units

 

Rating agency ICRA has downgraded rating for various group companies of IL&FS, showing cascading effect of liquidity pressure and leverage faced by group holding company and power sector entity.

 

The rating action follows the significant weakening of the financial risk profile of the parent company-IL&FS Energy Development Company Ltd (IEDCL) and the ultimate holding company Infrastructure Leasing & Financial Services Ltd (IL&FS). READ MORE

10:15 AM

Suven Life Sciences nears record high; stock surges 30% in one week

Shares of Suven Life Sciences hit a 52-week high of Rs 338, up 6%, gaining 30% in past one week on the BSE in an otherwise weak market. On comparison, the S&P BSE Sensex was down 0.58% during the period. READ MORE

10:00 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,931.51	+9.34	+0.02
S&P BSE SENSEX 50	11,969.94	-5.72	-0.05
S&P BSE SENSEX Next 50	34,303.43	+38.45	+0.11
S&P BSE 100	11,730.10	-2.77	-0.02
S&P BSE Bharat 22 Index	3,617.53	-2.95	-0.08

9:50 AM

Rupee to hit 73 by Mar 2019; fiscal target to be breached, says report

 

India is the only major emerging market having a negative balance of payments (BoP) and the pressure is expected to sustain, a Swiss brokerage said Monday, expecting the rupee to depreciate to 73 by March 2019.

 

Shortfalls in GST collection and divestments, coupled with state finances being under strain will take the consolidated fiscal deficit to 6.5 per cent in FY19, against the government’s budget estimate of 5.9 per cent, UBS said. READ MORE

Illustration by Ajay Mohanty

9:40 AM

Global financial crisis: Lessons for India from the 2008 crisis and beyond

 

The years since the global financial crisis of 2008 have brought into sharp focus the importance of managing financial stability in the Indian context. Post the crisis, developed economies focused solely on fostering growth, relegating fears around inflation and deficits into the background.

 

In India’s case, however, when we focused on growth, we allowed financial instability from twin deficits, banking stress and inflation to set in. This led to our own economic crisis of 2013. READ MORE

9:28 AM

COMMENT Kotak Securities on economy

External sector remains at risk. CAD/GDP at 2.4% in 1QFY19 even with higher invisibles net receipts and overall balance at (-)US$11.3 bn highlighted the challenges that India’s external sector balance faces in FY2019. We estimate CAD/GDP at 2.8% in FY2019 with overall balance at (-)US$34 bn compared to US$43.6 bn in FY2018. Intensifying EM crisis, fear of a contagion and broad-based USD strength coupled with deteriorating domestic macro scenario and domestic political uncertainty are expected to keep the INR under pressure. We expect USD-INR to range 69-74 for rest of FY2019

9:28 AM

Motilal Oswal Securities on Sun Pharma

We raise EPS estimates by 1%/3% for FY19/FY20 to factor in the favorable currency movement. We also raise our P/E multiple to 27x from 25x 12M Forward Earnings as we expect a premium to industry average for Sun Pharma to expand.

Incremental generics business from new launches, which should be higher than base business erosion, increased traction in specialty products and sustained outperformance in the domestic formulation business should drive growth. Accordingly, we revise our target price to Rs 790 (from Rs 700 earlier).