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

All that happened in Wednesday's trade

9:38 AM

Hindustan Copper tanks

Hindustan Copper dipped 8% to Rs 65.25 on BSE in early morning trade after the government fixed floor price for its offer for sale at Rs 64.75. The floor price is at a discount of 8.35% over Tuesday’s closing price of Rs 70.65 on the BSE.

 

The government will sell 37 million equity shares in Hindustan Copper at a floor price of Rs 64.75 apiece through a two-day offer-for-sale (OFS) beginning today, with an option to issue a similar number of shares in case of over subscription.

9:37 AM

MONETARY POLICY EXPECTATION: CARE RATINGS

 

We expect RBI to maintain status quo in its interest rates in the upcoming RBI policy view as inflation potential is still uncertain due to implementation of GST, farm loan waivers and 7th pay commission allowances. We expect RBI to initiate a rate cut in the month of October’17, once the picture becomes clearer and upside risks to inflation subside.

9:35 AM

MARKET OUTLOOK BY AMBIT CAPITAL

 

Investors that are taking a 1-2 year view of investing in India need to be wary not just because of the prevailing punchy valuations but also because the rise of “networks” plus PM Modi’s resets are changing the rules of the game. We strongly urge investors to take a 3+ year view 

9:30 AM

Most sectoral indices trade flat ahead of the RBI meet outcome. Nifty Realty gains the most, up 0.6% followed by Nifty PSU Bank, up 0.4% and Nifty IT, up 0.3%

9:27 AM

Top Sensex gainers and losers

Source: BSE

9:24 AM

Sensex, Nifty pared some gains after hitting fresh high at open

At 9:23 am, the S&P BSE Sensex was trading at 32,614, up 39 points while Nifty50 index was ruling at 10,124, up 10 points

9:22 AM

In braoder markets, the BSE Midcap underperformed the benchmark indices, down 0.1% while the BSE Smallcap gained 0.2%

9:21 AM

Benchmark indices open at fresh record high on expectations of interest rate cut in the RBI policy today. 

S&P BSE Sensex gained as much as 111 points to open at fresh record high of 32,686 surpassing the previous milestone of 32672.66, hit on July 17. The broader Nifty50 index rose as much as 23 points to conquer new high of 10,137. It has hit the previous high of 10,128, yesterday.

9:20 AM

Five key trends from the results declared until 31 July 2017 (Source: Motilal Oswal Research)

 

[1] GST-related hiccups, as expected, took a toll on the volumes performance of B2C sectors – Staples, Durables and Electricals were particularly impacted by destocking ahead of GST roll-out. 

 

[2] Provisions for most BFSI companies were elevated and came in above expectations – Private Banks posted in-line results, while NBFCs and PSU Banks missed expectations. 

 

[3] Healthcare is on its way to report another washout quarter, with all the companies (barring Glenmark) missing expectations. 

 

[4] Large-cap cement companies surprised on profitability due to better-than-expected realizations. 

 

[5] Technology and Consumer posted in-line performances, while Telecom exceeded muted expectations

9:17 AM

RESULT REVIEW: NTPC (Source: Edelweiss Securities)

 

NTPC’s Q1FY18 operating performance came broadly in line with estimate. The company has planned a fixed price (FP) pooling mechanism, first of its kind, which targets cutting average cost of generation by running pit head plants at full load, while load factor of non-pit head plants will be determined by demand. 

 

This, if successful, can improve NTPC’s overall efficiency 1-2%. We believe, while this could positively impact profitability 5-10%, its successful implementation is likely to be arduous as it will require buy-in by all states, apart from necessary approvals of regulatory authorities. 

 

During the analyst meet, management, for the first time, indicated some under recoveries (though not quantified) due to loss of energy upon receipt and firing of coal (100-150kcal energy lost). NTPC is going full throttle on commissioning of new capacities (4.7GW targeted), which is likely to drive up regulated book and help sustain the current exit multiple. Maintain ‘BUY’.

9:15 AM

TECHNICAL CHECK ON THE MARKETS

 

Today the markets are likely to open on flat note. All emerging markets are trading mixed. The coming session is likely to witness a range of 10,000 on declines and 10,200 on advances: SMC GLOBAL SECURITIES

9:15 AM

CORPORATE RESULTS TODAY

 

PNB, Lupin, Bata, Capital First, Edelweiss, Emami, Entertainment Network, Godrej Properties, KEC International, Reliance Infrastructure, Voltas, Wockhardt, Greenply Industries, HEG, Igarashi Motors, Ingersoll Rand, Magma Fincorp, Mahindra Holidays, Max Ventures, Narayana Hrudayalaya, Sical Logistics, Transport Corporation of India, TBZ, UCO Bank and VST Industries are likely to announce their results today

9:13 AM

MONETARY POLICY EXPECTATION: Bank of America Merrill Lynch

 

We continue to expect the RBI MPC to cut rates by 25bp on August 2 on weak growth and low inflation. At the same time, the commentary will likely be hawkish as the RBI has switched to a neutral stance recently. Any further cut depends on the rains

9:09 AM

COMMENT: Nomura on PMI

 

The PMI survey suggests that firms are still assessing the implications of the tax changes and have slowed production and orders until there is more clarity. They do not view this as a sustained moderation and are quite optimistic on the future outlook, supporting our view that this is a temporary blip. Once firms adopt the new tax structure, restocking and normal purchasing activity should resume from August/September onwards. 

 

We expect GDP growth to rise from a low of 6.1% y-o-y in Q1 to a still modest 6.6% in Q2, before rising to an average of 7.4% in H2 2017 led by resumption in production, remonetisation, normal monsoons, lower lending rates and external tailwinds

9:05 AM

Technical calls from HDFC Securities

Buy Atul Auto
 

CMP: Rs 440

STOP LOSS: Rs 420

TARGET: Rs 470

 

Buy DCB Bank
 

CMP: Rs 200

STOP LOSS: Rs 192

TARGET: Rs 215

Click here for more