Sensex begins week on a negative note, Nifty just above 9900; banks fall
04 September 2017
3:30 pm Market at Close: Selling pressure on the market kept the market weak through the day and indices managed to end on a negative note as well.
The Sensex closed down 189.98 points at 31702.25, while the Nifty was down 70.95 points at 9903.45. The market breadth was negative as 1011 shares advanced against a decline of 1,648 shares, while 162 shares were unchanged.
Midcaps managed to cut some of its losses from the morning, but ended weaker. Meanwhile, sectoral indices auto, banks, energy, FMCG, infrastructure and IT all had a weak day.
Coal India and Sun Pharma were the top gainers among both indices, while Adani Ports, Indian Oil and Bharti Airtel lost the most.
3:20 pm Television broadcasting stocks in focus: Sun TV Network, TV18 Broadcast and NDTV rallied up to 20 percent.
The rally in TV broadcasting stocks may be after Start India bagged media rights of IPL.
Star India has won the 'Global Media Rights' of the Indian Premier League (IPL) for a period of five years (2018-2023) for a whopping Rs 16,347.50 crore, the Board of Control for Cricket in India (BCCI) announced today.
The 'global media rights' include the Indian television, digital as well as the overseas broadcast and digital media rights.
(Disclosure: Reliance Industries, which owns Reliance Jio, also owns Network18, which publishes Moneycontrol.com.)
3:15 pm Resigns: Tim Leverton stepped down at president & CTO of Tata Motors, with effect from October 31, citing personal reasons.
3:10 pm Earnings: JBM Auto shares rallied 3 percent after its consolidated net profit grew by 5.1 percent year-on-year to Rs 19.4 crore and revenue rose by 6.3 percent to Rs 430.6 crore in the quarter ended June 2017.
Operating profit during the quarter increased sharply by 50.8 percent to Rs 46.8 crore and margin expanded by 370 basis points to 12.4 percent compared with year-ago quarter.
3:05 pm Defence deal: Hindustan Aeronautics today said it has signed a Rs 6,100 crore contract for supply of 41 Advanced Light Helicopters (ALH) to the Indian Army and one to the Indian Navy.
The contracts will be executed in a period of 60 months, the company said. HAL, in a statement here, said, the contract was signed between the Ministry of Defence and HAL in New Delhi recently. Officials from the MoD, the Indian Army, the Indian Navy and HAL were present during the event.
"The latest order reflects the trust on HAL's capabilities and gives an impetus to the Make-in-India campaign...It reposes faith of Indian Defence forces in indigenous ALH which has been serving them with distinction for a long time," HAL CMD T Suvarna Raju said.
2:59 pm CEO steps down: Aditya Birla Fashion and Retail today said its division Pantaloons' Chief Executive Officer Shital Mehta has resigned from the company.
"Shital Mehta has resigned from the post of Chief Executive Officer, Pantaloons division of the company. Consequently, he will also cease to be one of the key managerial personnel of the company," Aditya Birla Fashion and Retail Ltd (ABFRL) said in a regulatory filing.
2:55 pm Interview: "We are seeing stable production in the crude oil space and gas. We are going to do better from the previous year," AK Srinivasan, Director-Finance at Oil and Natural Gas Corporation (ONGC) said in an interview to CNBC-TV18.
This will increase company's revenue space, also gas prices will be higher from October 1 than current prices, he added.
For every dollar increase in gas price, revenue gets impacted by Rs 4,000 crore and for every dollar increase in crude oil, revenue gets impacted by Rs 900 crore, said Srinivasan.
On Hindustan Petroleum Corporation Ltd (HPCL) issue he said, HPCL will be a separate listed entity, will not merge with ONGC.
2:45 pm Market recovers: The Indian market were seen trimming some of the losses, with the Nifty back at 9900-mark.
The Sensex was down 187.40 points at 31704.83, while the Nifty was down 63.85 points at 9910.55. The market breadth was negative as 858 shares advanced against a decline of 1,652 shares, while 146 shares were unchanged.
2:30 pm NTPC stake sale: Government's sale of its 6.6 percent stake in the state-run power giant NTPC Ltd has no impact on the company's Baa3 issuer rating, Moody's Investors Service said.
After the sale, the government will continue to hold a majority stake of 63.1 per cent in NTPC.
The company's ratings remain supported by its strategic importance to the Indian economy, given its position as the country's largest power generation company, Moody's said.
NTPC's Baa3 issuer rating reflects its baseline credit assessment (BCA) of Baa3, it said, adding that the rating does not factor in any uplift from the government due to the high Baa3 BCA relative to the Baa3 sovereign rating.
2:12 pm Market Check: Investors on Monday continued to be wary of fresh talks of missile launch by North Korea, pushing global indices lower in the day's trade. Back home, the Nifty breached 9900-mark, while the Sensex fell over 300 points intraday.
While the Street did witness a pullback of sorts from the day's low points, weakness still continued.
The Sensex was down 273.59 points at 31618.64, while the Nifty was down 93.90 points at 9880.50. The market breadth was negative as 775 shares advanced against a decline of 1,707 shares, while 136 shares were unchanged.
Banks, auto, FMCG, IT and infrastructure sectoral indices bled, while midcaps cracked 1.25 percent.
2:00 pm New IPO: Online matchmaking services provider Matrimony.com will launch its initial public offer on September 11, with a price band of Rs 983–985 per share of face value of Rs. 5 each of the Company. The Anchor Investor Bid/Offer Period shall be September 08, 2017, being one working day prior to the Offer Opening Date.
The public issue comprises of fresh issue up to Rs 130 crore and an offer for sale of up to 37,67,254 equity shares by promoter and promoter group.
The offer for sale comprises of up to 14,61,006 shares by Bessemer India Capital Holdings II, 1,55,760 shares by Mayfield XII (Mauritius), 16,83,207 shares by CMDB II, 3,84,447 shares by Murugavel Janakiraman and 82,834 equity shares by Indrani Janakiraman.
1:43 pm Market Check: Benchmark indices were sharply lower in afternoon as the Sensex was down 271.01 points at 31,621.22 and the Nifty down 88.80 points at 9,885.60.
1:25 pm Gold rallies: Gold prices hit their highest in nearly 10 months after North Korea's latest and most powerful nuclear test drove investors towards safe-haven assets.
US gold futures for December delivery were up 0.97 percent at $1,343.30.
1:15 pm Market Check: Equity benchmarks as well as broader markets traded lower in afternoon, tracking weakness in global peers after North Korea did a nuclear test on Sunday.
The 30-share BSE Sensex was down 223.50 points at 31,668.73 and the 50-share NSE Nifty fell 73.80 points to 9,900.60 but showed some recovery from day's lows.
About 1,673 shares declined against 756 advancing shares on the BSE.
1:05 pm Another North Korea's missile launch possible?: South Korea has detected signs that the North is preparing another missile launch, the defence ministry said today, adding it could involve an intercontinental ballistic missile.
The ministry said signs that North Korea was "preparing for another ballistic missile launch have consistently been detected since Sunday's test", referring to Pyongyang's sixth nuclear test.
It did not give details, or indicate when a launch might take place.
Sunday's blast had a strength of 50 kilotons, defence ministry officials told a parliamentary briefing.
Pyongyang on Sunday triggered global alarm with by far its most powerful test to date, after it claimed it had successfully tested a hydrogen bomb that could be mounted onto a long-range missile, which analysts say is a major advancement in its nuclear programme.
12:55 pm Drug launch: Pharma major Lupin announced the launch of its Olmesartan Medoxomil tablets, 5 mg, 20 mg and 40 mg after receiving an approval from the United States Food and Drug Administration (FDA).
Olmesartan Medoxomil tablets are the AB rated generic equivalent of Daiichi Sankyo Inc's Benicar tablets.
It is indicated for the treatment of hypertension, alone or in combination with other antihypertensive agents, to lower blood pressure.
Benicar tablets had US sales of USD 681 million, as per IMS MAT July 2017.
12:49 pm Buzzing: Jaypee Infra gained over 4.5 percent intraday as investors cheered a Supreme Court order that went in the company's favour.
The Supreme Court stayed the insolvency proceedings against the company in the National Company Law Tribunal (NCLT).
The move comes after IDBI Bank had filed a plea in the apex court after Rs 500 crore default.
12:45 pm Market Expert: ''Over the past couple of months, global markets are near their highs and any escalations or tension especially military confrontation between nuclear states like North Korea, US, and its allies could bring a lot of uncertainties in the market,'' Abhimanyu Sofat, Vice President, Research at IIFL told Moneycontrol.
''The special relationship between North Korea and China will also be tested in case of such military confrontation. One may see a 4-5 percent kind of correction in the market if the situation escalates,'' he said.
A 4-5 percent fall from current levels could take the Sensex towards its crucial support level of 30,000 while for the Nifty, it would be somewhere closer to 9,400.
12:38 pm Europe trade: European markets opened sharply lower, as North Korea's latest nuclear test prompted investors to rush to safe-haven assets.
The pan-European Stoxx 600 was down by around 0.64 percent shortly after the opening bell, with all sectors and major bourses in negative territory.
On Sunday, North Korea conducted its sixth and most powerful nuclear test to date, which it claimed was of an advanced hydrogen bomb for a long-range missile.
12:31 pm Novartis chief stepping down: Novartis Chief Executive Joseph Jimenez will retire in 2018, with chief drug developer Vasant Narasimhan taking over as CEO starting in February, the Swiss drugmaker said on Monday.
Jimenez is stepping down following a decade at Novartis after having successfully secured US approval for a new gene therapy for leukemia last week but before Novartis returned to sales growth, which the company has forecast will resume in 2018.
Jimenez arrived in 2007 to lead Novartis's consumer health division and rose to CEO in 2010.
12:24 pm Market Check: Equity benchmarks cracked further in afternoon on reports that Pyongyang was making preparations for another missile launch after hydrogen bomb test over the weekend.
The 30-share BSE Sensex was down 319.04 points or 1 percent at 31,573.19 and the 50-share NSE Nifty plunged 108.70 points or 1.09 percent to 9,865.70.
The broader markets also extended losses as the BSE Midcap and Samllcap indices dropped 1.3 percent each. About three shares declined for every share rising on the BSE.
12:15 pm Sugar prices: Sugar prices moved up by 1.38 percent to Rs 3,680 per quintal in futures trade today as speculators raised their bets amid uptick in demand in the spot market.
At the National Commodity and Derivatives Exchange, sugar for delivery in October rose by Rs 50, or 1.38 percent, to Rs 3,680 per quintal, with an open interest of 90 lots.
Analysts said widening of positions by traders due to pick up in demand in the physical market, mainly influenced sugar prices at futures trade.
12:14 pm Volatility Index surged 17.39 percent to 13.71 on the National Stock Exchange.
12:12 pm Yen, gold, bonds gain: The Japanese yen, gold and sovereign bonds all rose today as North Korea's latest nuclear test, and reports Pyongyang was making preparations for another missile launch, provoked the usual knee-jerk shift to safer harbours.
The dollar was marked down to 109.57 yen, having been as low as 109.22 and off a whole yen from late on Friday.
Japan is the world's largest creditor nation and traders tend to assume Japanese investors would repatriate funds at times of crisis, thus pushing up the yen. Many wonder, however, if Japanese assets would really remain in favour if an actual war broke out in Asia.
Japan's Nikkei did not take the news well, losing 0.9 percent. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.75 percent with South Korea's main index down 1 percent.
12:07 pm All sectoral indices in red: All sectoral indices were trading lower amid North Korea tensions.
Nifty Bank, Auto, Metal, Pharma and IT indices fell 1 percent each while Nifty Realty index fell more than 2 percent.
12:00 pm Top valuation league: The Aditya Birla group has entered the top valuation league with a market cap of over USD 50 billion post listing of financial services arm Aditya Birla Capital (ABCL), but Tatas remain on top with over USD 132 billion.
The combined market valuation of the Kumar Mangalam Birla-led listed companies stood at Rs 3,42,354.87 crore (USD 53.5 billion) at the end of Friday's trade.
Among various listed companies of the group, UltraTech Cement's valuation stood at Rs 1,10,097.70 crore at the end of Friday's trade while that of Grasim Industries was Rs 76,881.73 crore.
The newly-listed Aditya Birla Capital's market capitalisation was over Rs 55,000 crore, Hindalco (Rs 54,607.09 crore), Idea Cellular (Rs 32,064.91 crore), Aditya Birla Fashion and Retail (Rs 13,155.73 crore) and Aditya Birla Money (Rs 547.71 crore).
11:55 am Market Check: Equity benchmarks extended losses in late morning trade on rising tensions over North Korea that tested hydrogen bomb over the weekend.
The 30-share BSE Sensex was down 230.68 points at 31,661.55 and the 50-share NSE Nifty fell 81.80 points to 9,892.60 on weak market breadth.
About 1,460 shares declined against 865 advancing shares on the BSE.
11:40 am CLSA on Maruti: While maintaining buy rating on Maruti Suzuki with target price of Rs 9,230, CLSA said rising brand acceptance will enhance dominance of the company in passenger vehicle segment.
Nexa is making its brand more acceptable in the higher-priced segment.
It feels an improving long-term outlook justifies a premium valuation for the stock. Maruti is trading at 26x 1-year forward P/E versus an average of 15x.
11:35 am USFDA nod: Ajanta Pharma has received final approval from the US health regulator for Entacapone tablets, used in the treatment of Parkinson's disease.
In a BSE filing, Ajanta Pharma said it has recieved "final approval for Entacapone tablets from US FDA. It is a bioequivalent generic version of Comtan tablets".
The company said it will launch the product shortly in the strength of 200mg tablets.
This new approval is part of portfolio of products that the company has developed for the US market, it added.
11:30 am Buzzing: Shares of Garware Wall Ropes rose 3.75 percent intraday as the company has declared strong numbers in the quarter ended June 2017.
The company's Q1Y18 net profit increased 31 percent at Rs 25.9 crore against Rs 19.81 crore, in the same quarter last year.
Revenue of the company was up 14 percent at Rs 243 crore versus Rs 214 crore.
The margins was up 220 bps at 15.2 percent versus 13 percent.
The company has registered 10.3 percent jump in its net sales at Rs 243.2 crore in Q1FY18 against Rs 217.5 crore.
11:20 am Coal scam: Industrialist Naveen Jindal and others were today granted bail by a special court in a case related to the allocation of a coal block in Madhya Pradesh.
Special Judge Bharat Parashar granted the relief to them on a personal bond of Rs one lakh each and one surety of like amount.
The court has now posted the matter for further hearing on October 31.
Besides Jindal, others who got the relief include Jindal Steel and Power Ltd's (JSPL) former Director Sushil Maroo, former Deputy MD Anand Goyal and CEO Vikrant Gujral.
The accused were summoned for alleged offences of cheating and criminal conspiracy in the allocation of Urtan North coal block in Madhya Pradesh.
In its charge sheet, the CBI has alleged that JSPL misrepresented the equipment purchase orders and misled the Coal Ministry.
Jindal is also facing trial in a case pertaining to the allocation of Amarkonda Murgadangal coal block in Jharkhand.
11:10 am Coal India in focus: Coal India shares rallied nearly 3 percent intraday after August production and offtake data and the appointment of new CMD.
Coal production for the month of August stood at 37.63 million tonnes, which was ahead of company's target of 36.96 million tonnes, the country's largest coal miner said in its filing.
Even the offtake came in higher than its target at 43.75 million tonnes. The company had estimated offtake for August at 43.09 million tonnes.
This was provisional production and offtake performance of Coal India and its subsidiaries for August.
Meanwhile, the ministry of coal has entrusted the additional charge of Chairman and Managing Director, Coal India to Gopal Singh. He has taken over charge with effect from September 1, 2017.
The company its latest board meeting held on August 31, approved the revision in sizing charges and rapid loading silo charges; and revision in additional charges and for supply of slack and steam coal.
"Due to this revision, Coal India will generate approximate additional annual revenue of Rs 527 crore," it said.
11:03 am Most active shares: Reliance Capital, United Spirits, Reliance Industries, Raymond, BPCL and BEML were most active shares on exchanges.
10:58 am Gold update: Gold prices went up by a whopping Rs 241 at Rs 30,064 per 10 grams in futures trade today after speculators raised bets, tracking a firming global trend.
At the Multi Commodity Exchange, gold for delivery in October was trading higher by Rs 241, or 0.81 per cent, to Rs 30,064 per 10 grams, in a business turnover of 804 lots.
The yellow metal for delivery in far-month December too rallied by Rs 225, or 0.75 per cent, to Rs 30,213 per 10 grams in 13 lots.
10:52 am Rupee gains: The rupee firmed up by 2 paise to 64 against the US dollar in morning on selling of the American currency by exporters and banks.
Besides, the dollar's weakness against other currencies overseas on renewed geopolitical tensions after North Korea's latest nuclear test yesterday and below expectations US jobs data for August gave the rupee strength, dealers said.
They said, however, a lower opening of the domestic equity markets, capped the gains.
The 30-share BSE Sensex was down 111.64 points at 31,780.59 and the 50-share NSE Nifty fell 31.60 points to 9,942.80.
10:47 am Order win: "EdCIL, A Government of India mini ratna enterprise, has awarded Kellton Tech the prestigious 'Early Digital Learning Program (EDLP)' project of the Republic of Mauritius," Kellton Tech said.
The project involves supply, commissioning, and maintenance of tablet based learning programs in Mauritius. The order value is estimated to be about Rs 62 crore.
10:43 am Buzzing: AU Small Finance Bank gained more than 1 percent after getting certificate of registration.
The Insurance Regulatory and Development Authority of India, on August 31, has granted certificate of registration to the company, to act as corporate agent (Composite) with registration No. CA0515 under Registration of Corporate Agents - Regulations, 2015.
10:33 am Market Check: Equity benchmarks extended losses in morning as the Sensex fell more than 100 points, weighed by geopolitical tensions surrounding around North Korea after its latest hydrogen bomb test.
IOC and Adani Ports were top losers among Nifty50 stocks, down 2.6 percent followed by HDFC Bank, HDFC, Infosys, L&T, IndusInd Bank, HUL, Kotak Mahindra Bank and Bharti Airtel while Coal India gained more than 2 percent after dispatch numbers.
The 30-share BSE Sensex was down 124.89 points at 31,767.34 and the 50-share NSE Nifty fell 37.00 points to 9,937.40. About 1,150 shares declined against 965 advancing shares on the BSE.
10:25 am Rajan on demonetisation: Less than a year after he demitted office as the 23rd Governor of the Reserve Bank of India (RBI), Raghuram Rajan said he had cautioned the Centre on the short-term costs of demonetisation outweighing the long-term benefits.
10:10 am Buzzing: Shares of Cadila Healthcare rose 2 percent intraday as it has received final approval from USFDA.
Zydus Cadila has received the final approval from the USFDA to market Mycophenolate Mofetil for injection USP, 500mg/vital.
The drug is indicated for use in combination with other drugs i.e. cyclosporine and corticostroids for the prophylaxis of organ rejection in patients receiving renal, heptic or cardiac transplants.
The drug will be manufactured at the group's formulations manufacturing facility at Moraiya, Ahmedabad.
10:00 am New listing: Apex Frozen Foods listed with 14 percent premium at Rs 202 against issue price of Rs 175.
9:50 am Railway stocks: Railway related stocks gained up to 5 percent intraday after Piyush Goyal became Railway Minister in recent Cabinet reshuffle.
BEML, Titagarh Wagons, Texmaco Rail, Stone India and Kernex Microsystems gained between 1 percent and 5 percent on hopes of major developments in railway sector by Goyal who has done great job in coal sector.
Narendra Modi-led government on Sunday made big changes in Cabinet portfolios ahead of general elections in 2019.
Piyush Goyal, the Minister of State for Power, Coal, New and Renewable Energy and Mines, has been elevated to the cabinet rank. The 53-year-old Bharatiya Janata Party man has been inducted as the Railway Minister, a prestigious portfolio in Narendra Modi's cabinet.
9:45 am GST cess on cars: The government has notified hike in GST cess on a range of cars from mid-size to hybrid variant to luxury ones to a maximum of 25 percent, from earlier 15 percent.
Following assent by President Ram Nath Kovind, the government has notified the Goods and Services Tax (Compensation to States) Amendment Ordinance, 2017.
The Ordinance was last week approved by the Union Cabinet, headed by Prime Minister Narendra Modi, and was sent to the President for his approval.
It has come into force with effect from September 2 -- the date of official gazette notification.
With this amendment, taxation on luxury, SUV and other vehicles would be brought at par with that prevailing pre-GST rollout.
9:43 am Promoters offering in Buyback: Infosys promoters, including iconic co-founders N R Narayana Murthy and Nandan Nilekani, have offered to sell as many as 1.77 crore shares -- worth up to Rs 2,038 crore -- in the company's Rs 13,000 crore buyback offer.
The promoters group -- which includes most of the founders and their families -- have expressed their intention to be part of the company's first buyback plan in its over three-decade history and have offered to tender a maximum of 1.77 crore shares.
At a buyback price of Rs 1,150 per share, this could mean a windfall of Rs 2,038.94 crore for the promoter group, if all the shares tendered by them are accepted in the buyback offer.
The founders and families -- classified as promoters group -- held 29.28 crore shares, or 12.75 percent, in Infosys at the end of June 2017.
9:37 am Earnings growth: Bharat Iyer of JP Morgan said the research house believes FY18 consensus earnings growth numbers remain vulnerable to further cuts particularly for consumer discretionary and financials.
Nearly 77 percent of FY18 earnings growth estimated for the broad market is expected to be contributed by these sectors, he added.
"We estimate earnings growth of about 10 percent for FY18 and 15 percent for FY19 for the broad market," he said.
Valuations for the broad market at 18x 12-month forward consensus earnings are above +1 standard deviation expensive from historical averages seen over the last decade, he added.
9:29 am Auto sales: Jaguar Land Rover sold 9,421 units in the US in August, up 1 percent compared with 9,329 units sold in same month last year.
The growth was driven by Land Rover sales that increased 4.8 percent to 6,320 from 6,031 units on year-on-year basis.
Jaguar US sales fell 6 percent to 3,101 from 3,298 units YoY.
9:25 am Asian cues: Safe haven demand drove up gold and the yen while equities in Asia were pressured by elevated tensions on the Korean Peninsula after North Korea said it tested a hydrogen bomb over the weekend.
Japan's Nikkei 225 declined 0.9 percent and the Kospi fell 0.8 percent
9:15 am Market Check: Equity benchmarks opened mildly lower on Monday, tracking weakness in Asian peers following North Korea's nuclear test over the weekend.
The 30-share BSE Sensex was down 56.56 points at 31,835.67 and the 50-share NSE Nifty fell 2.75 points to 9,971.65.
Aurobindo Pharma, Cipla, Hero Motocorp, Coal India and Tata Motors gained up to 1 percent while IOC, Sun Pharma, BPCL, Asian Paints, M&M, Dr Reddy's Labs and L&T were under pressure.
TVS Motor, Ashok Leyland, ITD Cementations, Titagarh Wagons, VA Tech Wabag, M&M Financial, NMDC, Reliance Capital, Cadila Healthcare and Glenmark Pharma gained up to 3 percent.
Ujjivan Financial, Muthoot Finance, REC, Jaiprakash Associates and Aditya Birla Capital fell up to 5 percent.