Nifty ends below 10,200, Sensex down 174 points; banks, realty drag
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10:43 AM
BS Banking Round Table
Capacity utilisation across various sectors is going up: Chanda Kochhar of ICICI Bank
Capacity utilisation across various sectors is going up: Chanda Kochhar of ICICI Bank
10:40 AM
The various issues that the private banking sector has faced over the past few years have impaired its ability to have good credit growth: Rajnish Kumar of State Bank of India
BS Banking Round Table
The various issues that the private banking sector has faced over the past few years have impaired its ability to have good credit growth: Rajnish Kumar of State Bank of India
10:39 AM
BS Banking Round Table
If deleveraging happens, the credit growth obviously will be muted: Rajnish Kumar of State Bank of India
10:35 AM
Edelweiss Securities on inflation data
CPI inflation for November 2017, at 4.9%, came in much higher than the expected 4.4% and 130bps higher than previous month. The spurt over the previous month was essentially led by the sharp and unexpected spike in fruits and vegetables, which almost fully explains the jump in food inflation from 2.2% to 4.4%. Ex-fruits/vegetables, food inflation remained extremely subdued at 1.2%. At core CPI (ex-commodities) level, inflation jumped 40bps led by rise in HRA allowance, healthcare and household requisites. Going ahead, while we expect pressure on core CPI to ease a bit given reduction in GST rates in November, but given the unexpected spike in vegetable prices (which could persist for 1-2 months), headline CPI could range between 5-5.5% over next few months. This is clearly much above the RBI’s projections of 4.3-4.7%. Still, we think that inflation dynamics remains benign with weak pricing power and generally benign global food prices.
CPI inflation for November 2017, at 4.9%, came in much higher than the expected 4.4% and 130bps higher than previous month. The spurt over the previous month was essentially led by the sharp and unexpected spike in fruits and vegetables, which almost fully explains the jump in food inflation from 2.2% to 4.4%. Ex-fruits/vegetables, food inflation remained extremely subdued at 1.2%. At core CPI (ex-commodities) level, inflation jumped 40bps led by rise in HRA allowance, healthcare and household requisites. Going ahead, while we expect pressure on core CPI to ease a bit given reduction in GST rates in November, but given the unexpected spike in vegetable prices (which could persist for 1-2 months), headline CPI could range between 5-5.5% over next few months. This is clearly much above the RBI’s projections of 4.3-4.7%. Still, we think that inflation dynamics remains benign with weak pricing power and generally benign global food prices.
10:24 AM
Buzzing stock
Shares of the companies engaged in Direct to Home (DTH) television operating business were in focus, surging by up to 7% in an otherwise subdued market after the global private equity firm Warburg Pincus planning to acquire up to 20% stake in Bharti Airtel’s DTH arm Bharti Telemedia for $350 million. READ MORE
10:07 AM
Markets check
At 10:00 am, the S&P BSE Sensex was trading at 33,195, down 32 points, while the broader Nifty50 was ruling at 10,232, down 7 points.
Source: BSE
At 10:00 am, the S&P BSE Sensex was trading at 33,195, down 32 points, while the broader Nifty50 was ruling at 10,232, down 7 points.
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 33,190.04 | -37.95 | -0.11 |
| S&P BSE SENSEX 50 | 10,683.75 | -9.08 | -0.08 |
| S&P BSE SENSEX Next 50 | 35,395.14 | -15.78 | -0.04 |
| S&P BSE 100 | 10,709.38 | -8.40 | -0.08 |
| S&P BSE Bharat 22 Index | 3,686.88 | -1.47 | -0.04 |
Source: BSE
9:55 AM
BS Banking Round Table
In round 1, Chairman of SBI, MDs & CEOs of ICICI Bank and Union Bank of India, CEO of Standard Chartered Bank and former Deputy Governor, RBI, K C Chakrabarty come together to discuss the future of banking.
In round 2, CTO of ICICI Bank, Chairman of Payments Council of India, Digital Banking Head of Axis Bank, Regional MD, FIS and MD & CEO of Infrasoft Tech join for a discussion on the future of digital payments.
9:51 AM
Global equity market outlook
We expect 2018 to be a potentially pivotal year for global equity markets. The global economy should continue to hum along, with both developed and emerging markets maintaining their momentum. However, we expect the era of cheap money will slowly draw to a close, bringing with it new uncertainties.
Global equity markets broadly appear to be pricing in significant earnings growth, but some regions such as Europe and Asian emerging markets were more attractively valued than their US counterparts as of late 2017, making it increasingly important for investors to focus on individual company fundamentals
(Source: Stephen H. Dover, Executive Vice President, Head of Equities, Franklin Templeton Investments Chief Investment Officer, Templeton Emerging Markets)
9:48 AM
Industrial growth slows; retail inflation at 15-month high
Worrying signs surfaced on the industrial growth and inflation fronts on Tuesday, less than two weeks after the official data showed economic growth rose 6.3 per cent in the second quarter of the current financial year as against 5.7 per cent in the first. READ FULL REPORT HERE
9:47 AM
Edelweiss on Bharti Airtel
We attended Bharti Airtel’s (Bharti) analyst meet held at Uganda, Africa. Key takeaways: 1) rationalisation of network, leveraging improvement in coverage and capacity with launch of 3G in 900MHz band, and rationalisation of SG&A costs has led to margin improvement, and is sustainable; 2) higher tower sharing by operators is necessary for further improvement in margins; 3) Bharti is targeting increased bundle sales to improve ARPUs; 4) capex is likely to increase to $600-800mn for investments towards 3G/4G expansion; 5) opportunity in Africa remains strong with favourable demographics, high urbanisation, low mobile penetration; and 6) Bharti is in the fray for acquiring Etisalat’s Nigerian operations, which on successful operations will boost EBITDA due to synergies. Maintain ‘BUY’ with TP of Rs 625 on industry consolidation that will trigger structural improvement in profitability
9:46 AM
HSBC's view on CPI, IIP
The growth-inflation mix continues to remain worrying and isn't encouraging for the central bank to move rates on either side. The possibility that the RBI could cut rates has substantially receded with greater upside risks looming over the inflation trajectory for remaining FY18.
Under these uncertainties, the RBI's neutral stance and commitment to remain watchful of incoming data are thought to be highly appropriate. We therefore expect the RBI to keep the repo rate on hold at 6% in the foreseeable future. Also, we expect FY18 growth to be weaker at 6.5%, compared to the 6.7% estimate of the central bank
9:45 AM
Emkay Global on macro data
Retail inflation in Nov'17 increased to 4.9% yoy, however it is higher than our expectation of 4.5%. Overall build up in inflation remained strong and was broad based. Food inflation particularly vegetables inched up further this month, this trend will further intensify in Dec-Jan'18 as the last year's base of demonetization sets in. We maintain our view of hardening inflation outlook to 5.2% on an average in Q4FY18. This might prompt RBI to withdraw 25bps rate cut announced in Aug'17 by the year end
9:42 AM
Nifty outlook by Angel Broking
The Nifty has slipped below Monday’s low of 10,282.05 on a closing basis and thereby signals further weakness towards 10,180-10,150. On the upside, 10,329-10,410 now becomes a stiff resistance zone. We continue to advise remaining light and avoiding fresh longs until mentioned resistances are not broken.
9:32 AM
Sectoral trend in the opening trade
Source: NSE
9:23 AM
Sensex heatmap at open
Source: BSE
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First Published: Dec 13 2017 | 3:30 PM IST
