MARKET WRAP: Sensex rises 151 pts as PSU banks shine; YES Bank slips 6%

Among the sectoral indices, the Nifty PSU Bank index rose 1 per cent led by Indian Bank, State Bank of India (SBI) and Vijaya Bank. The Nifty Auto index, too, rose nearly 1 per cent led by Maruti

9:40 AM

Jefferies on Dabur

Our recent meeting with Dabur's management team reiterated steady demand scenario and company's improving execution. Amidst increasing to steady market share and waning intensity from Patanjali, Dabur expects volumes to grow in low double digits. Investment in distribution, A&P and ESOP charge will impact FY19 margins but FY20 should see a healthy uptick helped by benign RM. Maintain Buy with Rs 460 as the price target

9:36 AM

MARKET COMMENT ICICI Securities

We believe the MPC is already behind the curve when it comes to changing the stance of monetary policy. Given the low level of inflation, it should have changed the stance to ‘neutral’ in the Dec ’18 policy. Since inflation is expected to remain low in the coming months, we believe there is a strong change of the MPC changing the stance to ‘neutral’ in the next policy review.

Moreover, scales are tipping in favour of 25bps cut as well. We expect the MPC to deliver a rate cut and change in stance together instead of step-by-step approach of changing stance first and the following with a rate cut. However, since it will be new Governor Shaktikanta Das’ first policy review, changed dynamic within the committee needs to be observed

9:31 AM

Shaktikanta Das promises to uphold RBI autonomy; will meet PSB heads today

Hours after assuming charge as governor of the Reserve Bank of India (RBI) on Wednesday, Shaktikanta Das spelt out his priorities, asserting that he would uphold the autonomy, credibility and integrity of the “great institution”. Das also said he would extensively consult various stakeholders, including the government, on key issues.

Suggesting his focus on the banking sector, Das said more measures were needed to revive lenders, and that he would meet heads of public sector banks on Thursday. According to banking sources, there is no specific agenda for the meeting, but the concerns over PCA (prompt corrective action) banks, stressed loans and capital adequacy are likely to come up for discussion. READ MORE

9:18 AM

Sectoral trend on NSE

9:17 AM

Opening gainers and losers on BSE Sensex

9:16 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 36,0004, up 225 points, while the broader Nifty50 was ruling at 10,806, up 69 points.

9:06 AM

BOND ALERT 10-year Govt bond yield opens at 7.38% against previous close of 7.41%

9:02 AM

Market at pre-open Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,040.93	+261.86	+0.73
S&P BSE SENSEX 50	11,305.05	+73.02	+0.65
S&P BSE SENSEX Next 50	32,280.42	+199.39	+0.62
S&P BSE 100	11,072.41	+71.05	+0.65
S&P BSE Bharat 22 Index	3,400.96	+29.82	+0.88

9:01 AM

Rupee opening

 

Rupee opens at 71.71/$ vs its previous close of 72.01 per dollar

8:52 AM

Stock calls by Tradebulls Securities: Buy TCS

Stock: TCS

Reco.: BUY

CMP: Rs 2,016

 

‘Double Bottom’ formation been established at its 200 DEMA followed by a mature continuation formation (Flag pattern) on the daily scale, the evidence is good for a sustained move towards 2088/2140 soon. Trading longs could be added with a stop below 1955 READ MORE

 

8:45 AM

SPECIAL REPORT Sensex may climb to 42,000 by end of 2019, says Morgan Stanley

Influential brokerage Morgan Stanley expects Sensex to climb to 42,000 by the end of next year. The target implies an 18 per cent upside for the market from current levels in local currency terms. The brokerage expects the rupee to gain next year and therefore the market returns in dollar terms will be around 25 per cent, it said the index on Wednesday was trading at 35,690. READ MORE

Photo: Shutterstock

8:43 AM

Top trading ideas by Prabhudas Lilladher

 

BUY AXIS BANK

 

CMP: Rs 619.95

 

TARGET: Rs 680

 

STOP LOSS: Rs 580

 

The stock has made a higher bottom formation pattern in the daily chart taking support at around 580 levels and has improved the bias and currently with bullish positive candle formation has signified strength and has potential to carry on the momentum still further upward in the coming days. The RSI has indicated a trend reversal to signal a buy and with the chart looking attractive and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 680 keeping a stop loss of 580. READ MORE

8:43 AM

WEB EXCLUSIVE Hotel sector poised for a rebound. Should you check in?

After a lull of almost a decade, the hospitality industry in India is set to witness a meaningful uptick going ahead. Increasing middle-class population, rising disposable income, growth in foreign tourist arrivals (FTAs), and the government’s numerous initiatives to grow the domestic tourism are some of the factors, analysts say, augur well for the industry READ MORE HERE

8:37 AM

MARKET OUTLOOK Sahaj Agrawal, DVP – Derivatives, Kotak Securities

 

Amidst the broader Up Trending wave, we have recently experienced some volatile moves. Recently on back of domestic political events and news flows from RBI, Nifty fell sharply up-to 10330. However, it was resilient at lower levels and staged a power-packed market wide recovery as well, with Auto and PSU Banks as top gainers. Going forward, we believe 11050 should be tested in this month and 10300 should act as a base. Closing above 11050 will add further strength to the ongoing (Up) Trend and open gates for much higher levels.

8:36 AM

MARKET COMMENT Gautam Chhaochharia, head of India research at UBS Securities

After taking a negative turn, the market has recovered from its low, despite the state election results and the RBI Governor's resignation event on Monday. Our interactions with investors (especially overseas ones) and valuation multiples suggest BJP coming back in 2019 is being priced in. With today's outcome, we expect the market focus to shift towards the upcoming general election in a more granular way, including evaluating various outcome possibilities.

So far, the government has maintained fiscal discipline and commitment despite revenue pressure. Given today's election results and RBI Governor resignation, some investors are debating if the government's policy will become populist ahead of the general election. Our base case remains that it is unlikely, given a lack of historical precedent (except 2009, which had the global financial crisis as a backdrop) and the political imperative to keep inflation under check too. Also, "populism" per se is not easy to turn on at short notice at the ground level and the election is 3-4 months away.

Head of India Research, UBS, Gautam Chhaochharia