Sensex ends flat, Nifty below 9950; M&M top loser ahead of GST Council meet

All that happened in today's trade

10:16 AM

IPO: Matrimony.com Ltd. – Subscribe

Issue Opens: 11-September-17, Issue Closes: 13-September-17, Price Band: Rs 983-985

 

Matrimony.com, India’s leading online matchmaking service, is all set to capitalise on a strong database of marriageable-age members. Given its strong brand recall and robust network of 140 retail centers besides growing awareness of internet usage, the company is perfectly poised to dominate the largely unorganised and fragmented matchmaking market. 

 

IPO proceeds are expected to be gainfully utilised leading to higher revenues from increased brand awareness and lower rentals and interest expenses. Focused expansion of its marriage services business through cross selling and assisted services could also help the company move up the value chain. 

 

The stock is available at ~51x FY17 P/E with a 10% discount to retail investors. It may be noted that the nature of the Matrimony.com business is not comparable to that of Just Dial and Info Edge. We recommend Subscribe for listing gains.

 

(Source: IIFL)

10:14 AM

Biocon gains

 

Biocon was up 5.3% to Rs 353 on BSE in early morning trade after the company’s insulin manufacturing facility in Malaysia received a Good Manufacturing Practices (GMP) compliance certificate from Europe’s drug regulator.

 

“Biocon’s subsidiary in Malaysia, Biocon Sdn. Bhd., has been issued Certificate of ‘GMP Compliance’ from Europe for its insulin manufacturing facility in Malaysia,” the company said in a regulatory filing.

Read full report here

Biocon's facility. Photo: Company's website

10:00 AM

Chris Wood of CLSA in his weekly note, GREED & fear

 

The official narrative of financial markets this year is that G7 central bank policy is in the process of normalising. Bank of Japan officials are hoping that the extreme limits have already been reached in the Japanese central bank experiment in unconventional monetary policy. This is not just because BoJ Governor Kuroda’s term in office formally ends in April next year. It is also because there is growing comfort taken from the pickup in economic activity.

 

The Bank of Japan remains nowhere near meeting the 2% inflation target set by Kuroda when he became BoJ governor back in April 2013. No one expects the 2% target to be reached save for some dramatic short-term spike caused by a macro shock. Just how difficult 2% will be to achieve has become clear in the recent past given the lack of upward pressure on wages and prices despite the accumulating evidence of an ever tighter labour market.

9:58 AM

A year after Jio launch, RIL sees more upgrades

 

Reliance Industries (RIL) is upbeat about its telecom venture Reliance Jio at the end of its first year of launch. RIL’s investments of over Rs 1,50,000 crore in telecom, seen as a drag on its return ratios earlier, could start bearing fruit earlier than expected, given the response to its services. Jio has set a record by crossing the 130-million customer mark. 

 

Also, rising expectation of a cut in interconnect usage charge (IUC; paid by one operator to another for call termination) and the launch of Jio phones can accrue big gains for RIL. READ MORE

9:43 AM

ICICI Lombard's Rs 5,700-cr IPO: Price band set at Rs 651-661 per share

 

ICICI Lombard General Insurance Company on Thursday set Rs 651-661 as the price band for its initial public offering (IPO), which will make it a Rs 5,700-crore issue.

 

"The price band has been set at Rs 651-661. At the upper end of the band, it will raise Rs 5,700 crore," a source said.

 

The issue, the first by any general insurance company, hits the market on September 15. The roadshows are kicking off on Friday in the financial capital.

 

Read full report here

9:32 AM

NBFCs' share of retail loans at a 10-year high

 

Retail non-banking finance companies (NBFCs) are on a roll. Their share of total retail lending in India reached an all-time high of 36% at the end of March this year and they continue to grow faster than both public and private sector banks. 

 

Advances by retail NBFCs were up 17 per cent last fiscal year over the previous year, against 15% growth reported by private sector banks and 2.5% decline in the loan book of public sector banks (PSBs). READ MORE

9:27 AM

Nifty Metal

Extending gains for sixth straight session, Nifty Metals rose 0.7% in the early morning trade. All constituents except Nalco were in positive territory.

Source: NSE

9:22 AM

Sectoral Trend: All sectoral indices were trading in green

Source: NSE

9:20 AM

Top Sensex gainers and losers

Source: BSE

9:18 AM

Nomura on economy

 

India’s Q2 current account data are due within the next fortnight. We estimate that the current account deficit widened to a four-year high of 3% of GDP from a low of 0.6% in Q1. A sharp deterioration in the trade deficit is the main reason. According to monthly customs data, the trade deficit widened to 6.9% of GDP in Q2 from 4.5% in Q1.

9:18 AM

Markets at open

Benchmark indices open marginally higher tracking Asian Markets in lack of any major cues. The S&P BSE Sensex was trading at 31,751, up 89 points while Nifty50 index was trading at 9,958 up 28 points.

9:08 AM

Option strategy on Zee Entertainment by Chandan Taparia of MOSL

ZEE ENTERTAINMENT ENTERPRISES: BULL CALL SPREAD

 

RATIONALE:

 

1) Respected to its multiple support of 500-505 zones and has been consolidating near to support zones

2) Supports are slightly shifting higher and a small follow could lead it to 540 zones

3) Hovering near to its 50 DEMA

4) Rollover of 82% with positive roll cost suggests an up move

Click here for full report

9:05 AM

Edelweiss on SpiceJet

 

Our meeting with Mr. Koteshwar, CFO, SpiceJet (SJ), left us enthused about the company’s growth prospects. From a near collapse, SJ has managed to clock profits in past 10 consecutive quarters and continues to prune debt. 

 

Following the turnaround, the company has now renewed focus on profitable growth reflected in a mega aircraft order to capitalise on promising industry dynamics (structural: demand growth to exceed capacity in underpenetrated market; cyclical: benign ATF prices). 

 

We raise FY19E EV/EBITDAR to 8.5x (from 8.0x) and revise TP to Rs 150 (Rs 138 earlier) as we assume lower warrants dilution (50% probability versus 100% assumed earlier)

9:04 AM

Few trading ideas from Prabhudas Lilladher:

 

SOBHA – BUY

CMP: Rs 409.50      

TARGET: Rs 450     

STOP LOSS: Rs 385

 

V-GUARD - BUY    

CMP: Rs 200.70      

TARGET: Rs 222      

STOP LOSS: Rs 188

 

SYNGENE - BUY    

CMP: Rs 473.20      

TARGET: Rs 520      

STOP LOSS: Rs 445

Click here for rationale

9:03 AM

ECB: QE recalibration in October 2017

 

The Governing Council (GC) did not make any policy changes at its September meeting but announced that changes to its QE programme will likely be announced at the next meeting, in October. In the initial statement, President Draghi acknowledged that the recent exchange rate volatility is a source of uncertainty and requires monitoring. 

 

He also stated that there was no discussion today within the GC about potential changes to the current policy sequencing embedded in the forward guidance or to the issue/issuer limits. 

 

We do not change our call on QE and rates, but we acknowledge the risk that the ECB delays the increase in the negative depo rate should the euro appreciate further in the coming months.

 

(Source: Barclays)