Nifty ends at record high on negative market breadth, Sensex up 250 points

All that happened in Friday's trade

10:00 AM

Sector watch: Telecom

 

As of July 2017, Bharti Airtel had holds a market share of 23.7% which represents a subscriber base of 281.3 million users. This is followed by Vodafone, Idea, Reliance Jio that hold respective market share of 17.7%, 16.3%, and 10.8% representing subscriber base of 210.5 million, 193.9 million and 128.5 million, respectively. Reliance Jio had launched its services in September 2016. The total wireless subscriber base stood at 1,186.79 million as on July 2017

 

(Source: CARE Ratings report)

9:55 AM

Bharti Airtel, Tata Teleservices surge up to 10% on merger plan

 

Shares of telecom companies, Bharti Airtel and Tata Teleservices (Maharashtra), have rallied by up to 10% after Sunil Mittal - owned  Bharti Airtel agreed to take over Tata Group’s mobile services business CLICK HERE FOR MORE

9:26 AM

India Equity Strategy: Nomura

 

Bottom-up analysts' expectations suggest 9.2% y-y growth in sales and 7.6% y-y growth in EBITDA for our core universe. In this report, we present sector-wise and company-wise details on our earnings expectations for 2QFY18F. Ex oil and gas and financials, we project revenue growth of 9.2% y-y, EBITDA growth of 7.6% y-y and net profit growth of 0.9% y-y. 

 

For most of the sectors, y-y growth has improved on a sequential basis. Autos and the Consumer sectors are the biggest drivers of earnings for our coverage universe. Pharmaceuticals continue to be the biggest laggard, though we expect some improvement q-q. For corporate banks, we expect slippages to come down significantly, though provisioning will likely remain high as banks provide for National Company Law Tribunal cases. The core PPOP of corporate banks has been weak, with low loan growth and NIM pressure. Core PPOP growth is unlikely to surprise positively in this quarter

9:24 AM

Sector watch at 9:20am

Index	Open	High	Low	Current Value	Prev. Close
S&P BSE Fast Moving Consumer Goods	10225.49	10236.58	10196.78	10210.37	10207.6
S&P BSE Finance	5667.31	5692.02	5666.64	5691.99	5664.84
S&P BSE Healthcare	14124.53	14138.14	14090.18	14123.19	14097.81
S&P BSE Information Technology	10339.52	10379.04	10328.86	10343	10322.1
S&P BSE Telecom	1462.51	1480.13	1459.61	1468.68	1419.79
S&P BSE Utilities	2135.91	2140.2	2129.89	2130.48	2130.05
S&P BSE AUTO	24718.38	24818.16	24718.38	24803.29	24732.47
S&P BSE BANKEX	27388.75	27503.19	27383.07	27503.04	27380.81
S&P BSE CAPITAL GOODS	17476.8	17476.95	17407.98	17422.75	17423.3
S&P BSE CONSUMER DURABLES	18190.39	18326.83	18190.39	18303.92	18273.7
S&P BSE METAL	14301.37	14338.97	14299.59	14327.64	14253.69
S&P BSE OIL & GAS	15674.8	15725.85	15658.46	15693.5	15646.14
S&P BSE POWER	2245.67	2248.39	2237.42	2238.52	2238.47
S&P BSE REALTY	2128.77	2128.77	2118.64	2119.09	2120.4

Source: BSE

9:19 AM

Market snapshot at open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,301.96	+119.74	+0.37
S&P BSE SENSEX 50	10,520.88	+37.36	+0.36
S&P BSE SENSEX Next 50	34,691.15	+92.82	+0.27
S&P BSE 100	10,537.95	+35.90	+0.34
S&P BSE MidCap	15,996.63	+37.10	+0.23

Source: BSE

9:15 AM

Tech view on the markets

 

A strong corrective move on Wednesday was followed by a positive opening in our market. As expected, index corrected sharply in the initial hour. But, a strong buying at lower levels pulled the index higher and in fact, the accelerated momentum pushed the index to retest the 10100 mark.

 

Yesterday's buying interest in last couple of hours has certainly surprised us. It has become very difficult to predict movement in the index and hence, we would rather look to focus on individual stocks. For the coming session, 10135 - 10178 are the levels to watch out for and on the downside, 10035 - 9980 would be seen as immediate support levels.

 

 

(Source: Angel Broking)

9:14 AM

Nifty outlook by Angel Broking

It has become very difficult to predict movement in the index and hence, we would rather look to focus on individual stocks. For the coming session, 10135 - 10178 are the levels to watch out for and on the downside, 10035 -9980 would be seen as immediate support levels.

9:13 AM

COMMENT: Christopher Wood, managing director and equity strategist at CLSA

 

GREED & fear’s base case for now is that the Fed will reverse course sooner rather than later. It is still assumed for now that core inflation in America has already peaked in this cycle. If this is indeed the case, then the Fed is likely to reconsider its outlook if inflation continues to come in below expectations during 1H18, most particularly if the average hourly earnings growth slows down again.

 

If the Fed chairmanship is taken over by someone prioritising “normalisation” over “data dependency”, and prioritising targeting inflated asset prices over core CPI or PCE inflation, then the immediate consequences for asset markets will be much more negative. But for now the base case is that the Fed will remain in traditional “inflationary targeting” mode.

 

 

(Source: Excerpted from Wood's weekly newsletter, GREED & fear)

9:09 AM

Stock view: Zensar Technologies

 

We expect the Indian rupee to come under pressures in the short-term. We do believe that the US ultimately may not opt for stringent protectionism for the Indian IT exports considering the political realignment happening at the global level. We also expect the momentum in the consolidation of mid-sized IT companies to continue as the large IT companies are unlikely to grow their revenue base in double digits even in rupee terms. Hence, we consider betting on beaten-down mid-sized IT companies like Zensar could be an attractive opportunity. Hence, we initiate our BUY on the stock with a target price of Rs.900, which is 13.8x its FY2019E EPS of Rs 65

 

 

(Source: Equinomics Research)

9:07 AM

RIL: Focus will be on Jio numbers in September quarter

Reliance Industries’ (RIL’s) financials for the quarter-ended September (Q2) to be announced on Friday are being looked at with great expectations.  While the Street has high hopes from the core refining business, given the benchmark Singapore gross refining margins (GRMs) hitting a high recently, the numbers of telecom venture Jio would be closely monitored CLICK HERE FOR THE FULL STORY

9:02 AM

Today's Picks

 

Devangshu Datta on Nifty, Bank Nifty, Hindustan Unilever, Infosys, Sun Pharma

 

READ DETAILS HERE

8:53 AM

BUY GULSHAN POLY   

 

CMP: Rs 85.85      

TARGET: Rs 98      

STOP LOSS: Rs 81

CLICK HERE FOR MORE TECHNICAL CALLS

8:53 AM

Corpporate news nugget

 

·         Tata and Bharti Airtel to combine consumer telecom business in cash-free, debt-free deal

 

·         Sun Pharma to increase shareholding in Ranbaxy Malaysia to 79.5% from 71.2%

 

·         DHFL loan to Manpreet Estates under tax scan

 

·         Indiabulls Housing Finance's U.K. subsidiary OakNorth Bank gets £154mn investment

 

·         Piramal Enterprises approves raising Rs. 2,000cr through a rights issue

 

·         Shriram EPC: Wins Rs. 349cr of multiple orders

 

8:51 AM

How Tata Tele-Bharti Airtel deal was done in 5 days

 

The deal between Bharti group and Tata Teleservices is yet another example of how swiftly things can change in business. A collapsed deal was brought back to life in the last five days, people close to the transaction said. 

 

The talks between the Tatas and Bharti had begun a few months ago but by the end of August the negotiations were not going anywhere. Sources in both companies indicated till the end of September that no deal was possible.  Meanwhile, there were talks with other groups as well including Reliance Jio for a possible merger deal. That too didn’t work. The Tatas were now clearly looking at a closure of the telecom business and had begun sounding out customers and employees last month READ THE FULL STORY HERE

8:50 AM

Merger to give Airtel more subscribers, Tata Tele an easy exit: Analysts

 

By running the show, Tata Teleservices would have continued to bleed on the financial front. The deal will ensure further losses are arrested, they say CLICK HERE FOR THE FULL STORY

Bharti Airtel