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

All that happened in today's trade

9:02 AM

Stock view: Shree Cement

 

Shree Cement is the most cost-efficient cement producer in India. Its superior execution capability enables it to achieve RoIC of over ~50% (FY19E). It's gross-block-to-capacity (GB/capacity) – currently at around $53/tonne – has been structurally trending downward, as the proportion of brownfield expansion has increased. The GB/capacity is at 28% discount to peers, which is also reflected in its superior RoCE. We believe Shree Cement deserves to trade at premium valuations; we value the cement business at 15x FY20E EV/EBITDA to arrive at a target price of Rs 22,360. Buy

 

 

(Source: MOSL)

9:00 AM

Nifty View from Prabhudas Lilladher:

 

With yet again a range bound movement in Nifty, it is still a stock specific market, whereby selective stocks move in rotation each day. The support for the day is seen at 9880 while resistance is seen at 9,975.

9:00 AM

Key Nifty levels to watch out for

 

Nifty closed in the positive territory in the last trading session. However, the daily momentum indicator is still in buy mode, which indicates that the short-term bias is positive whereas the weekly indicator is in sell mode, hence the medium-term bias is negative. 

 

The crucial support on the lower side is pegged at 9870 and below that 9850 whereas the resistance is pegged at 9950 to 10000 levels. The broader range, however, is 9780 to 10000 levels and a breakout or a breakdown from this range will lead to a further trend.

 

(Source: Anand Rathi Research)

8:57 AM

Nirmal Bang on real estate sector

 

We initiate coverage on the real estate sector with a negative view. The slowing residential sales momentum was further aggravated by demonetisation in November 2016. To add to the woes, a slew of new laws seeking to regulate the real estate sector are expected to dampen the already weak residential sector. 

 

While the Real Estate (Regulatory & Development) Act 2016 or RERA is expected to increase the pressure on cash flow with the creation of escrow account, the Insolvency & Bankruptcy Act 2016 is expected to result in increased distress sales. 

 

We do agree that in the long run both these regulations will be beneficial for the sector, in the short to medium term we expect the decline in sales volumes together with a fall in prices leading to pressure on margins. We have assigned Sell rating to Oberoi Realty and Sobha, the two companies in our coverage universe

8:56 AM

Technical check on the markets

 

Today the markets are likely to open on flat note. All emerging markets are trading mixed. The coming session is likely to witness a range of 9850 on declines and 10050 on advances: SMC Global

8:55 AM

Stock recos from Motilal Oswal

YES BANK

Reco: BUY

Last Close: Rs 1800

Stop Loss: Rs 1750

Target: Rs 1880

 

 

EICHER MOTORS

Reco: BUY

Last Close: Rs 32861

Stop Loss: Rs 32300

Target: Rs 33700

Click here for Nifty outlook

8:53 AM

Sebi imposes Rs 2,423 cr fine on PACL, 4 directors

 

Regulator Sebi today imposed Rs 2,423 crore fine on PACL Ltd and its four directors for illegal fund mobilisation through various schemes that were used by the group to garner over Rs 49,000 crore from the public.

 

While the group, which had collected money in the name of real estate projects among other schemes, was asked by Sebi nearly three years ago to refund Rs 49,100 crore to the investors, the regulator has passed a fresh order to impose a monetary penalty for violation of Sebi's Prevention of Fraudulent and Unfair Trade Practices Regulations.

8:52 AM

ECB maintains status quo on policy rate 
 

Policy makers maintained asset purchases at 60 billion euros ($72 billion) a month until December, and reiterated their pledge to increase the size or duration if the economy worsens. They left interest rates unchanged and repeated that they expect borrowing costs to stay at present levels until well past the end of net asset buying. 

 

8:48 AM

SGX Nifty

 

The Nifty50 futures on the Singapore Stock Exchange were trading 18 points higher at 9,971 indicating a flat opening for the domestic market.

8:48 AM

Asian Stocks

Asian shares edged up on Friday as investors kept a wary eye on another US storm, while the dollar skidded after European Central Bank chief Mario Draghi suggested the bank may begin tapering its massive stimulus programme this autumn.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1%, but was still down 0.2% for the week.

 

Japan's Nikkei stock index was pressured by a stronger yen and slipped 0.5%, losing 2% for the week.

8:47 AM

Wall Street

Wall Street ended little changed yesterday after a moderate late-day rally as media stocks, which slumped on negative business updates from Walt Disney and Comcast, were offset by gains in healthcare shares.

 

The Dow Jones Industrial Average fell 22.86 points, or 0.1%, to 21,784.78, the S&P 500 lost 0.44 points, or 0.02%, to 2,465.1 and the Nasdaq Composite added 4.56 points, or 0.07%, to 6,397.87.

8:46 AM

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