RBI rate cut fails to cheer markets; Nifty ends below 10,100 mark

All that happened in Wednesday's trade

12:38 PM

Rupee gains ahead of RBI policy 

Rupee gained 22 paise to 63.84, its strongest level since August 2015

Photo: Shutterstock

12:30 PM

Emami pared losses to turn flat at Rs 1,073, bouncing back 5% from intra-day low on National Stock Exchange (NSE), after the company said the June quarter performance was impacted due to Goods & Service Tax (GST)-led destocking and inventory correction in the international markets.

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12:09 PM

PNB gains post earnings

Punjab National Bank gained 1.75 % after the lender reported a 12% rise in net profit at Rs 343.40 for the quarter ended June 30, 2017 against Rs 306.36 crore in the corresponding quarter last year. 

 

Net NPAs rose to 8.67% against 7.81% QoQ. The figure was at 9.16% in Q1FY17. 

 

Net interest income (NII) of the public sector lender rose 4.22% to Rs 3855.13 crore in Q1FY18 over Rs 3,698.97 crore in Q1FY17.

 

11:49 AM

EDELWEISS RESEARCH ON EQUITAS HOLDINGS

 

The ongoing transition phase will be strenuous, but the company’s right strategy and adequate capital will rein in execution risks. Benefits will accrue FY19 onwards as significant funding cost advantages and lower cyclicality risk will boost RoE. At the current market price, the stock trades at 2.3x FY19E P/ABV. We maintain ‘BUY/SO’ with a target price of Rs 220

11:45 AM

HSBC ON INFLATION AND INTEREST RATES

 

A contractionary July Manufacturing PMI is in line with our view that GDP growth will, at best, be flat at 7.1% y-o-y over FY18. The fall in PMI output prices indicate that upcoming core inflation prints will be benign. We expect a 25bps rate cut in the August 2 meeting of the RBI

11:42 AM

Nifty Realty index gains the most among sectoral indices led by India Bulls Realestate, Godrej Properties and Phoenix realty

11:13 AM

Hero MotoCorp was trading 3% higher at Rs 3,838 on BSE after the company reported a healthy 17% growth in total two-wheeler sales of 623,269 units in July. The world’s largest two-wheeler manufacture had sold 532,113 units in the corresponding month of the previous fiscal (July 2016).

 

Despite sluggish sales for the first few days of the month due the transition to Goods & Service Tax (GST), the company recorded six-lakh plus sales for the month of July, Hero MotoCorp said in a press release.

10:58 AM

At 10:58 am, the S&P BSE Sensex was trading at 32,557, down 17 points while Nifty50 index was ruling at 10,099 down 15 points.

 

In braoder markets, the BSE Midcap underperformed the benchmark indices, down 0.4% while the BSE Smallcap was a little changed.

10:47 AM

Nifty FMCG index extended losses to fall nearly 1% in morning deals. The fall was led by Colgate Palmolive, Marico, Godrej Consumer Products and Emami, down between 1.5%-2.5%.

Source: NSE

10:25 AM

Shares of fertilizers companies were in focus, rallied by up to 15% on BSE in intra-day deal, in otherwise subdued market.

 

Rashtriya Chemicals and Fertilizer (RCF), Nagarjuna Fertilisers, Chambal Fertilisers, Deepak Fertilisers & Petrochemicals Corporation and Fertilizers and Chemicals Travancore (FACT) were up more than 4% each. On comparison, the S&P BSE Sensex was trading flat at 32,594 at 9:56 am.

 

Of these stocks, Deepak Fertilisers & Petrochemicals Corporation and Chambal Fertilisers were trading at their respective record high, while RCF quoting at 52-week high on the BSE.

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10:03 AM

Ahead of earnings

Lupin gained 1.51 % and Wockhardt fell 2.07 % ahead of their june quarter results. 

9:43 AM

MORGAN STANLEY ON INTEREST RATES

 

Given the slippage in core inflation, we expect the RBI to cut rates by 25 bps at its August 2 meeting. However, we expect the RBI to maintain its neutral monetary policy stance and do not expect any further material easing in our base case. Call rates are still tracking closer to reverse repo rate rather than repo rate

9:41 AM

MONETARY POLICY EXPECTATION FROM KOTAK SECURITIES

 

RBI had revised down its inflation trajectory sharply in the June policy. MPC was keen to watch for sustenance of the downward momentum for the next couple of prints before deciding on the next policy action. Given that inflation reading has further surprised with sub-2% print (well below RBI’s own estimates), we find some room for RBI to be accommodative. 

 

We expect the MPC to cut repo rate by 25 bps in the August meeting. However, we reckon that the room for further monetary accommodation remains limited amid (1) mean reversion of food prices, (2) rising real rural wages, (3) onset of global financial tightening and (4) adverse base effect

9:39 AM

IPO UPDATE: Cochin Shipyard

 

Cochin Shipyard Limited  IPO is overall subscribed 0.92 times at 05:00 pm (EOD) on Day 1 (August 1, 2017). QIB subscribed ​0.72 ​ times, NII subscribed ​0.22 ​ times, Retail subscribed ​1.57 ​ times and Employees subscribed 0.12 times.

9:38 AM

EMKAY GLOBAL ON PC JEWELLER

 

Given the upbeat outlook we have upped our EPS estimates by 10%/12% for FY18E/19E. We maintain our BUY rating with revised price target of Rs 327 (19x FY19E domestic business EPS, a 50% discount to Titan)​