Indices erase gains to end flat but Nifty holds 9,900; auto, banks drag

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9:42 AM

Broader markets outperform

 

The BSE Midcap and the BSE Smallcap indices added 0.8% each against 0.3% rise in Sensex and Nifty. 

9:41 AM

Sectoral trend

Source: NSE

9:27 AM

Top Sensex gainers and losers 

Source: BSE

9:24 AM

Infosys top gainer

Infosys rallied over 3% to Rs 1,010 after the Securities and Exchange Board of India (Sebi) approved its share buyback and also offered a solution for participation by holders of the company’s American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). READ MORE HERE

9:20 AM

Markets at open

At 9:18 am, the Sensex was trading at 31,817, up 46 points, while the broader Nifty50 was ruling at 9,912, up 15 points. 

9:11 AM

Outlook for Nifty Bank (Angel Broking)

 

Although a minor pullback move in the Nifty Bank index was expected, the velocity of the upmove in the last hour on Wednesday was a surprise to some extent. Though, when the volatility is rising, the directional as well as the corrective moves are usually sharper. The higher degree charts have given some cautious signs and hence, we refrain participating in this pullback move. 

 

The retracement resistance of the recent correction in the Nifty Bank index is seen around 24508. Thus, we advise to keep a wait-and-watch approach and stay light at the current juncture. 

9:09 AM

Pre-open trade

 

Markets buck negative trend seen in global markets in pre-open trade. At 9:05 am, the Sensex was trading at 31,911, up 140 points, while the Nifty50 was ruling at 9,948, up 51 points. 

9:09 AM

Nomura on trade data

 

Trade data suggests underlying weakness in both export and import volume growth. We believe this could be due to the supply-chain disruption triggered by transition to the GST regime, while some of the more persistent weakness in labour-intensive export categories (despite steady global demand) could also be on account of loss of competitiveness (due to real effective exchange rate appreciation). 

 

We expect GST disruptions to wane from August and import demand to recover. As a result, we expect India’s current account deficit to widen to 1.4% of GDP in 2017 from 0.6% in 2016

9:07 AM

Morgan Stanley on economic outlook

 

Headline CPI inflation rose by 2.4% YoY in July, up from 1.5% YoY in June, which was higher than consensus expectations of 2.0% and our forecast of 2.2%. The acceleration was largely driven by the pick up in food prices (vegetables and in particular tomatoes) and housing (due to implementation of house rent allowance). 

 

Indeed, on a seasonally adjusted sequential basis, food prices inched up by 1.1% in July from a decline of 0.5% in June. Data confirms that CPI and WPI inflation has troughed in June and should rise further in the coming months, which would limit the space for further aggressive monetary easing.

9:06 AM

ALERT: Money markets, banks shut on account of Parsi New Year

9:05 AM

Emkay Global on Blue Star

 

Blue Star (BLSTR) reported a better than expected operational performance for the quarter. While revenues increased by 20% yoy, the EBITDAM declined by 50bps (yoy) and PAT increased by 14% (yoy). While the market for room air conditioners (RAC) remained flat, BLSTR grew by 7% yoy with a gain in market share of 50bps yoy to 11%.  In the VRF and inverter AC segments, BLSTR grew by 20% and 24% yoy, respectively. We upgrade FY18E/19 EPS estimates by 4.5% and 4.4% respectively on higher margin assumption. Maintain REDUCE with target price of Rs 624 (SoTP)

9:05 AM

Stocks in news

 

Infosys, Tata Steel, Biocon, YES Bank, Larsen & Toubro, Unitech and Reliance Industries etc

9:03 AM

Commodity watch

 

Zinc prices on London Metal Exchange (LME) soared to a 10-year high in yesterday’s trade. Zinc hit above $3,000 per tonne for the first time since October 2007.  Zinc prices have gained 15% YTD and are up by around 34% yoy

9:03 AM

Technical calls

 

Buy Torrent Pharma with a target of Rs 1,560, says Sacchitanand Uttekar, AVP – Technical (Equity) at Tradebulls Securities. CLICK HERE FOR MORE TECHNICAL CALLS

9:02 AM

Stock recommendation

 

KNR Constructions has reported yet another strong quarter with Q1 FY18 standalone revenues growing by ~59% yoy on the back of strong execution. We have increased our estimates to incorporate the strong performance. KNR’s standalone EPC business is currently trading at a P/E of 14x FY19E EPS. With the sharp rise in stock price, we downgrade our rating to Accumulate for target price of Rs.237 per share (based on SOTP valuation)

 

Source: IIFL report