MARKET WRAP: Sensex cracks 806 pts as rupee sinks; OMCs tank up to 13%

The Nifty IT index ended nearly 3 per cent lower weighed by Infibeam Avenues, Tata Consultancy Services and Infosys. The Nifty FMCG index, too, slipped nearly 3 per cent weighed by Hindustan Unilever

9:02 AM

NEWS ALERT Rupee opens to record low of 73.70 per dollar

8:59 AM

From Hindalco to Bharti Infratel, hot stocks to watch on Thursday

Hindalco

Current price: Rs254

Target price: Rs259

 

Keep a stop at Rs251 and go long. Add to the position between Rs257 and Rs258. Book profits at Rs259.

 

Bharti Infratel

Current price: Rs252

Target price: Rs247

 

Keep a stop at Rs255 and go short. Add to the position between Rs248 and Rs249. Book profits at Rs247. READ MORE

8:57 AM

Nifty outlook and top trading ideas by Prabhudas Lilladher for today

Nifty is finding it difficult to sustain at these levels now with Tech giving in to selling along with Auto too not supporting, the only sector which is marginally on positive is the Metal sector. The support for the day is seen at 10,800 while resistance is seen at 10,930. READ MORE

8:56 AM

Top trading ideas by Tradebulls Securities: Sell ITC

Stock: ITC

Reco.: SELL

CMP: Rs 533

 

ITC has been oscillating within the downward sloping channel formation. On the daily scale, the current candlestick formation resembles a Falling Three formation which indicates a likely breakdown from the ongoing channel pattern. We expect the stock to decline towards its 200 DEMA placed near 282; hence fresh shorts could be deployed with a stop above 303 for an initial target towards 282. READ MORE

8:54 AM

Nifty outlook by Tradebulls Securities

Nifty continues its drift towards its 200 DEMA placed around 10800. The occurrence of multiple hammers displaying stability would be considered void once the index breaches below 10780. The patterns require a confirmatory close above 11040 for any pullback move to mature towards 11220. On the other hand, the fresh breakout in INDIA VIX indicates an upward shift in range & could see a movement towards the upper bound placed around 20.50-22 soon. As the broader trend remains weak slippages below 10800 could be impulsive & push the index towards 10281 zone. Hence traders should continue to retain their shorts until & firm reversal sign is not confirmed on the weekly structure.

8:51 AM

Corporate News 

 

·         Shriram Transport Finance intimated that corporate guarantee worth Rs 650 crore (in NCDs) had been terminated. 

 

·         Reliance Communications was granted relief by telecom tribunal, after it stayed the demand of bank guarantee of Rs 2,900 crore by Department of Telecommunications. 

 

·         HDFC Q2: Income from dividend at Rs 6 crore versus Rs 537 crore on a year-on-year basis. 

 

·         Larsen & Toubro’s board members gave nod for the buyback of equity shares.

 

·         Federal Bank was fined Rs 5 crore by the RBI for non-compliance with certain norms.

 

·         IL&FS Transportation Networks defaulted in the payment of interest worth Rs 20.8 crore due on three non-convertible debentures due to insufficient funds.

 

·         Aditya Birla Capital arm received a seven-year long-term loan worth Rs 7,000 crore from the World Bank group member International Finance Corporation.

 

·         Amara Raja Batteries signed a technology collaboration agreement with Johnson Controls.

 

·         TVS Motor invested additional Rs 30 crore in its subsidiary company TVS Credit Services.

 

·         GATI clarified on reports of sale of Kintetsu joint venture stake for Rs 2,000 crore and said that the deal had not been finalised and the management was still evaluating options.

 

·         Reliance Industries and Hathway Cable clarified that both companies were looking at various options to grow their business and they did not want to comment on any market speculations and rumours regarding the news that Reliance was in talks to buy Hathway Cable.

 

·         VST Tillers Tractors’ September sales of power tillers were down by 38 percent at 1,152 units versus 1,855 units on a year-to-year basis.

 

·         NLC India board announced it will consider buyback on Oct. 9.

 

·         Just Dial set Oct.12 as the record date for the buyback.

 

·         L&T Finance Holdings to decide on issue of preference shares worth Rs 250 crore on Oct. 8.

 

·         Bharti Airtel’s subsidiary Bharti Airtel International (Netherlands) B.V. has offered to repay outstanding EURO notes worth €1 billion which were due in Dec. 2018.

 

·         IOCL, BPCL and HPCL in focus as RBI allows OMCs to raise ECB for working capital purposes with minimum average maturity period of three to five years.

 

·         ONGC awarded contract worth $1.69 billion to Baker Hughes, McDermott International and L&T’s unit – L&T Hydrocarbon.

 

·         Moody’s downgraded GMR Infra- run Hyderabad International airport.

(Source: IIFL report)

8:38 AM

MARKET COMMENT Lakshmi Iyer, CIO (Debt) & Head of Products, Kotak Mahindra AMC

The MPC meeting is happening at time when a tale of 2 Cs is unfolding – viz crude oil prices and currency. The INR has depreciated almost 7% since last policy while crude oil prices are up by over 17%. This clearly is a double whammy for and net oil importer nation like India. While the H1 FY2019 CPI is likely to be within RBI target range, key is to see how much could H2 FY 19 play spoil sport amid rising crude prices.

The rising US rates and the intent to effect many more rate hikes would also be a pointer for our policy makers. Hence it seems like the stage is set for yet another rate hike. Will this hattrick be accompanied by a change in stance is the key thing to watch out for in the accompanying text. Markets seem to already have discounted a rate hike at the current prices and the tone of the policy could be a key determinant for yield movements

8:37 AM

Centrum Broking on Tata Steel

We see Usha Martin (UML) steel business acquisition as a smart move given the attractive discount of 30% to greenfield cost for a well-integrated asset providing product diversification and synergy benefits. We see that Net Debt/EBITDA for consolidated operations including both Bhushan (BSL) and UML (excl. European business which is getting shifted to JV) is likely to remain in a comfortable zone of 3.1x in FY20E (vs 2.9x at FY18 end) led by strong cash flows of domestic business given the favorable steel cycle and low cost metrics.

We expect TSL to abandon any further inorganic acquisition efforts in medium term given its five year goal of doubling capacity in India is well within reach now. Upgrade to Buy with a SOTP based TP of Rs800 as we expect both Bhushan steel and Usha Martin acquisitions to be value accretive in medium term

8:37 AM

Dollar scales 11-month peak 

 

The dollar climbed an 11-month top on the yen on Thursday as stunningly strong US economic data drove Treasury yields to their highest since mid-2011, while Japanese stocks attempted to reclaim a 27-year peak. The Nikkei added 0.4 per cent on bets the falling yen would boost sales and profits at Japan’s many exporters.

8:35 AM

Asian stocks sink in early trade

 

Asian equities and currencies sank after a spike in US Treasury yields tested investors’ nerves for equity valuations as Federal Reserve monetary tightening rolls on. The yen, befitting its haven status, headed higher. Shares in Hong Kong and South Korea retreated. Futures on the S&P 500 Index slipped.

8:34 AM

MARKET COMMENT Sahaj Agrawal, Vice President – Derivatives, Kotak Securities

 

Nifty trades with a negative bias for the near term. Technically, We have witnessed a monthly breakout failure which has resulted in selling pressure. Resistance is seen at 11000-11100 levels while support on the downside is seen at 10600. On the fundamental front, a weak rupee and an elevated crude continues to keep the sentiment negative. Expect broader range of 10,600-11,100 for the near-term

8:30 AM

US stocks end higher
 

Wall Street advanced on Wednesday and the Dow Jones Industrial Average closed at a record for a second day, after US economic data fueled a rise in Treasury yields, lifting financial stocks. The Dow Jones Industrial Average rose 54.45 points, or 0.2 per cent, to 26,828.39, the S&P 500 gained 2.08 points, or 0.07 per cent, to 2,925.51 and the Nasdaq Composite added 25.54 points, or 0.32 per cent, to 8,025.09.

8:27 AM

Nifty futures on SGX Nifty trade negative

At 08:26 am, the Nifty futures of Singapore Stock Exchange (SGX) were trading 132.50 points or 1.22 per cent lower at 10,750.50.

8:24 AM

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