Markets snap 8-session rally; Nifty settles below 10,150 ahead of Fed meet

All that happened in Tuesday's trade

10:11 AM

Fundamental view: KPR Mill Ltd

 

KPR Mill Ltd (KPR) is a vertically integrated textile player with presence across the entire value chain from production of yarn to manufacturing readymade garments. The company has made strategic investments in wind and a co-gen power projects for captive consumption which has resulted in self sufficiency of power requirement for the company (majority of the facilities are located in Tamil Nadu, which faces power cuts frequently). 

 

We believe, KPR’s steady financials and volume ramp up in the garment business would help continue generate better cash flows. Currently, KPR trades at 14.3x P/E on FY19E basis, which is justified given the healthy financials. We believe the stock is a good long term portfolio stock and we initiate coverage with a target price of Rs904, valuing it at 16x its FY19E EPS.

 

(Source: Centrum Wealth Research)

10:09 AM

5 money making ideas in this market from Motilal Oswal Research

 

Continued inflow in domestic funds, benign interest rate environment, stable currency coupled with favorable global cues is driving markets higher. Anxiety in global markets over North Korea has tapered off. Meanwhile India has received Rs 20,000 crore of inflow in domestic mutual funds in Aug’17 – an all-time high.  

 

We believe while valuations are not euphoric, they are rich vs. long period averages and therefore support from earnings pick up is critical to sustain these valuations, going forward. We prefer large-caps to mid-caps owing to valuation gaps. Earnings visibility and valuation comfort are key determinants for our preferred ideas

 

CLICK HERE FOR THE TOP PICKS

Photo: Shutterstock

10:07 AM

Tata Group shares in focus after huge block deals; Tata Motors up 4%

 

Shares of select Tata Group companies such as Tata Motors, Tata Chemicals and Tata Global Beverages were in focus and rallied by up to 4% on BSE in early morning trade after a huge block deals executed on these counters CLICK HERE FOR THE FULL STORY

9:59 AM

Banks play 'mind games' to woo customers 

 

Pradipta Sarkar, 37, is saving Rs 10,000 every month, one-fifth of his take-home salary, in a fixed income-linked systematic investment fund (SIP) to build his retirement corpus. But being a soccer fan, his dream is to cheer for his favourite team, Germany, from stadia in the World Cup matches some day. READ MORE

9:46 AM

Nifty Auto leading sectoral gainers 

Source: NSE

9:40 AM

Market outlook: Technical view

 

Continuing its winning spree, the Nifty added 67 points, scaling a fresh record high of 10171.70 after witnessing a gap-up opening and also settled with the highest close. It has given a decisive breakout above our mentioned level of 10150, which signifies further strength. 

 

We had mentioned that “on crossing above 10130-10150 zone, the Nifty can extend its rally towards 10200 level”. This is unfolding nicely. Above 10200, the Nifty can extend gains up to 10240-10250 levels. Immediate support is seen at 10130 followed by 10090

 

(Source: Emkay Global)

9:35 AM

Buzzing stock 

 

Tata Motors added over 4% to Rs 423 after the auto major's parent firm Tata Sons offered to buy nearly 1.7% of Tata Motors shares worth Rs 2,000 crore at a premium of 4% over Monday's closing price. 

9:28 AM

Sensex heatmap at open 

Source: BSE

9:24 AM

Broader markets outperform

 

The BSE Midcap and the BSE Smallcap indices outperformed to add 0.4% and 0.3%, respectively. 

9:19 AM

Markets at open 

 

At 9:18 am, the Sensex was trading at 32,457, up 33 points, while the broader Nifty50 was ruling at 10,160, up 8 points. 

9:15 AM

'Frothy' assets spark concerns as cash floods Indian markets

 

From officials of India’s central bank and the market regulator to fund managers, people are fretting over elevated asset prices. The nation’s equities and bonds have rallied even as economic growth sags to its weakest since 2014, and earnings remain stubbornly weak. The reason: A surge in local flows after last year's cash ban and buoyant global markets.

 

This divergence is spiking valuations and inciting caution among authorities and strategists. Michael Patra, a member of the Reserve Bank of India’s rate-setting panel, described the conditions as “frothy and bubbly” in the minutes of last month’s meeting CLICK HERE FOR THE FULL STORY

Market

9:14 AM

Nifty outlook by Chandan Taparia

 

Nifty has to continue to hold above 10,138 to extend its move towards 10,200 then 10,270 zones, while on the downside supports are seen at 10,050 and 10,020 zones. READ MORE

9:11 AM

Pre-open trade

 

The Sensex added nearly 100 points to 32,522, while Nifty hit a fresh high of 10,175, up 22 points in pre-open trade. 

9:09 AM

Top picks in a bull market

 

The scaling of a new high by a broader index, such as the Nifty 50 (the S&P BSE Sensex is not far from its all-time high) is a reflection of the elevated investor sentiment and confidence of the Street. While some market experts say the rally in the stock markets is liquidity-driven, others believe it is already factoring in strong earnings growth, moving forward Click here for the full story

bse, sensex, bull

9:07 AM

Pick of the week: Astral Poly Technik

 

Astral Poly Technik (APTL) has increased its manufacturing capacity by ~3x in FY09-16 primarily to cater to the demand from housing and agriculture. APTL plans to enhance its piping capacity to 1.7 Lakh tonnes by FY19E

 

The company has set up a CPVC compounding plant in Gujarat. Cost savings led by backward integration (making its own CPVC compound) and improved profitability in the adhesive division will lead to EBITDA margin expanding 250 bps to 16.5 % over FY17-19E

 

Major government infrastructure push and replacement demand from tier II and tier III cities coupled with restocking post implementation of GST is expected to be triggers in near term. Management is confident to achieve double digit volume growth with improving margin in both adhesives and pipes. We maintain a BUY with a target of Rs 791

(Source: Axis Securities)