Markets pare entire gains; Sensex down 90 points, Nifty ends below 10,000

All that happened in Wednesday's trade

11:17 AM

Nifty Realty leading sectoral gainer

Source: NSE

11:10 AM

News digest: Air traffic data

 

Global air travel demand surged 7% last year to 3.8 billion passengers over 2015 with carriers from Asia-Pacific region accounting for more than one-thirds of the total market share, IATA said.  As per the International Air Transport Association (IATA), airlines across the world added 242 million more passengers last year, taking the total number to 3.8 billion as against 3.6 billion in 2015. Significantly, India was the third largest market in terms of domestic passengers after the US and China, accounting for 5.2% in the total local traffic

 

(Source: Equinomics Research)

11:09 AM

Macro data preview: Morgan Stanley

 

The macro indicators for August / September will be evaluated for signs of an improving growth trajectory and inflationary pressures (which will in turn influence the central bank's decision).

 

Specifically on the inflation front, we expect both CPI and WPI inflation to have picked up further in the month of September. For CPI inflation, we expect a further rise to 3.8% YoY, inching closer to the central bank's inflation target of 4%. Moreover, the acceleration is expected to have been broad-based for a second consecutive month. In turn, we think that the rising inflation trajectory will mean that the central bank will keep rates on hold. On growth, we expect an improvement in industrial production in August. This would be in line with the manufacturing PMI print which showed a bounce back in the month of August.

10:59 AM

Markets check

 

At 11:00 am, the S&P BSE Sensex was trading at 32,081, up 157 points, while the broader Nifty50 was ruling at 10,062, up 46 points.

10:55 AM

Stock recommendations for today from Angel Broking

 

Company	Rating	CMP (Rs.)	Target (Rs.)	Upside (%)	Rationale
Music Broadcast	Accumulate	405	434	7.2	Expected to benefit from the lower capex requirement and 15 year long radio broadcast licensing.
Navkar Corporation	Buy	187	265	41.7	Massive capacity expansion along with rail advantage at ICD as well CFS augurs well for the company
Siyaram Silk Mills	Accumulate	2655	2856	7.6	Strong brands and distribution network would boost growth going ahead. Stock currently trades at an inexpensive valuation.

10:54 AM

Coal India Limited: Wage Hike Higher Than Expected

Rating  HOLD 

Price Target Rs 249 (from Rs 245) 

 

Key Takeaways: Wage settlement for non executives implies higher than expected wage hike and will result in further rise in wage provisions, in our view. We cut our FY18-19E EPS by 4.9-4.6%. CIL may consider price hike to offset wage hike, but uncertainty remains. While earnings outlook appears unexciting, worst in terms of negative news flow (grade reset, wage hike) is likely behind us. Hopes of price hike and strong dividend yield may offer downside support. Maintain Hold. 

 

(Source: Jefferies report)

10:52 AM

Kotak Securities on Cochin Shipyard 

 

Cochin Shipyard (COSH) is a public sector shipyard with an order book of around Rs 8,300 crore providing revenue visibility of 48 months. The current order-book comprises orders from the commercial segment, navy, coast guard and ship-repair segment. We estimate the company to continue to receive orders across segments with the order book growing at 20% CAGR perennially with orders primarily coming from the Navy and Coast Guard.  

 

The company is also ramping up its capacity with a third dry-dock and an international ship-repair center. We are positive on the company for 1) Recurring orders from Navy and Coast guard and 2) Improvement in the prospects of commercial shipbuilding segment. 

 

High margin ship-repairs business is value additive for the company. Expect prospects to improve for the company going forward especially with the Make in India initiative of GOI. Estimate 13% earnings CAGR over FY17 to FY20E with improvement in return ratios post full utilization of IPO money. Value the stock at 25x FY19E PE which is at discount to the mean one year forward PE of major international ship building companies in the current environment. Initiate coverage on the stock with a BUY rating and a target price of Rs 740.

10:46 AM

Infosys share buyback: An arbitrage opportunity

HDFC Securities suggests investors use the buyback opportunity for arbitrage. Since the buyback price has been set at Rs 1150 per share, investor can buy from the secondary market now at Rs 935 and offer / tender shares in the buyback later – netting a cool 23% return. CLICK HERE FOR MORE

10:30 AM

Buzzing stock

PSP Projects hit a new high of Rs 466, up 13% on BSE in intra-day trade after the company said it has been awarded main contract works at Surat Diamond Bourse, Khajod valued at Rs 1,575 crore. READ MORE

10:15 AM

Investment calls should be based on market, not ministers' will: Jaitley

 

The series of reforms initiated by the Modi government like demonetisation and the GST has put the Indian economy on a "far more stronger track", said Union Finance Minister Arun Jaitley on Wednesday at the Columbia University in New York. READ MORE

Finance Minister Arun Jaitley with Arvind Panagariya at Columbia University. (Photo: Twitter)

10:01 AM

BSE Smallcap index hits new high

 

The S&P BSE Smallcap index hit a new high of 17,020 on BSE in early morning trade on Wednesday, after a strong rally in chemicals, infrastructure, fertilisers, metals and auto parts & equipment stocks. The index surpassed its previous high of 16,982 touched on September 20, 2017 in intra-day trade. READ FULL REPORT

9:49 AM

Oil update

 

Oil prices extended gains with the US crude posting best daily gain in two weeks, after Saudi Arabia said it would cut oil exports in November.

 

The West Texas Intermediate for November delivery on Tuesday increased $1.34 to settle at $50.92 a barrel on the New York Mercantile Exchange, while Brent crude for December delivery rose $0.82 to close at $56.61 a barrel on the London ICE Futures Exchange. READ MORE

9:40 AM

CLSA on Indian markets

 

The Indian market is unlikely to make big strides in the near term due to the huge line-up of equity capital raising and selling by foreign institutional investors (FIIs). “With the expected weak trend in FII flows and continued high equity supply, Indian markets will likely end 2017 on a flattish/subdued note,” said CLSA in note dated October 9. READ FULL REPORT

9:30 AM

Sectoral trend

Source: NSE

9:26 AM

Sensex heatmap at open

Source: BSE