Sensex ends flat; pharma, metals gain big

CNBC

Market at Close: A good recovery in the last hour of trade helped D-Street cut big losses and end August series on a slightly better note. However, the Nifty managed to close below 11,700-mark. 

A weak rupee weighed on indices through the day, with the Indian currency dropping to a fresh low of 70.8550. Analysts had attributed the fall to rising crude oil prices and month-end dollar buying by oil companies to pay these off. 
Among sectors, FMCG, metals and pharma along with PSU banks were the top gainers, while auto, energy and Bank Nifty were the big laggards. In the broader markets, the Nifty Midcap index, too, ended over one-fifth of a percent higher. 
At the close of market hours, the Sensex ended lower by 32.83 points or 0.08% at 38690.10, while the Nifty was down 12.20 points or 0.10% at 11679.70. The market breadth was positive as 1,441 shares advanced, against a decline of 1,255 shares, while 169 shares were unchanged.
Sun Pharma and Tata Steel were the top gainers, while Maruti Suzuki, IndusInd Bank, Eicher Motors and Bajaj Finance have lost the most.  
Citi on Petronet LNG: Share price of Petronet LNG gain more than 3 percent as research house Citi has maintained buy rating with a potential upside of 24 percent.
It also raised target price to Rs 290 from Rs 285 per share.
Company management assures minimal impact from upcoming terminals and company exploring investment opportunities in LNG terminals, said Citi.
ITC touches 52-week high: Share price of ITC touched 52-week high of Rs 318.50, rising nearly 2 percent as BofAML maintained buy rating on stock with a target of Rs 360 with potential upside of 15 percent.
According to research house, early checks suggest 3-4 percent YoY volume growth likely in cigarettes in Q2.
It expect healthy show in FMCG despite rising competitive intensity. The valuations are undemanding but structural benefits to drive long-term growth.
Market Update: Equities are seeing some weakness in the afternoon session ahead of expiry of derivative contracts for August series. Banks are witnessing some weakness, with the Bank Nifty falling around a percent, while metals and pharmaceuticals are trading in the green. FMCG stocks, too, are trading strong. 
The Sensex is down 86.75 points or 0.22% at 38636.18, while the Nifty is down 28.60 points or 0.24% at 11663.30. The market breadth is positive, but narrow as 1,312 shares advanced, against a decline of 1,120 shares, while 154 shares were unchanged.
Tata Steel, Sun Pharma, GAIL and UPL are the top gainers, while IndusInd Bank, Kotak Mahindra Bank and HPCL have lost the most. 
Buzzing stock: Shares of Vedanta gained were up over a percent as global research firm Goldman Sachs initiated coverage on the stock with a buy call and a target of Rs 280.
The global financial services firm said that positive zinc outlook and strong volumes will overshadow current headwinds.
It also highlighted that the company has among stronger forecast of operating profit growth rates among global miners. The valuation, too, it said was attractive. 
Market Update: Consolidation has continued on D-Street, with the Nifty trading around flat lines ahead of F&O expiry. The Sensex is hovering around 38,700. Pharmaceuticals, metals and FMCG are trading in the green, while banks have traded weak. The Nifty Midcap index is currently trading over one-third of a percent higher. Tata Steel, Sun Pharma, and GAIL are the top gainers, while IndusInd Bank and Kotak Mahindra Bank lost the most.   
The Sensex is down 22.84 points or 0.06% at 38700.09, and the Nifty down 12.30 points or 0.11% at 11679.60. The market breadth is positive as 1,361 shares advanced, against a decline of 995 shares, while 139 shares were unchanged.
Jet Airways falls: Shares of Jet Airways continued its negative momentum from the past few sessions, falling over 3 percent. Investors may have continued to be wary of issues plaguing the airline.
The stock touched an intraday high of Rs 289.90 and an intraday low of Rs 281.55.
The airline was in the news on Wednesday as well after a Business Standard report said that the income tax department was probing a land deal between the airline and Godrej Buildcon land development deal.
Acquisition: The board of directors of Mahindra Logistics approved an investment of an amount upto Rs 7 crore in Transtech Logistics Private Limited.
Transtech Logistics Private Limited (TLPL) provides transport management solution to third party logistics companies (3PLs), shippers and transporters on a ‘software as a service’ model (SaaS) under the brand name ShipX.
MLL has been a customer to ShipX for more than three years and using the product for its supply chain management Vertical.
The proposed investment in TLPL, which has built a technology platform, is expected to bring operational efficiencies in SCM function of the company. Further, it would also provide
opportunities to the company to offer technology solutions to its customers and business partners.
This is part of the larger end-to-end digitisation plan for the company. This investment will help TLPL in developing more product features and strengthening the organisation.
Buzzing: Shares of Tata Chemicals declined 2.2 percent intraday after ICICI Prudential Life Insurance has reduced its stake in the company.
ICICI Prudential Life Insurance sold 52,13,678 shares (more than 2 percent) of the company at an average price of Rs 414.21 per share which were worth Rs 216 crore.
Its stake in the company reduced to 2.97 percent from 5.02 percent earlier.
ICICI Prudential was holding 3.99 percent and 3.59 percent in the company for the quarter ended March 2018 and June 2018 respectively.  
Acquisition: Share price of Greaves Cotton touched 52-week high of Rs 159.90, rising 9.5 percent in morning trade as company board approved acquisition of majority stake in Ampere Vehicles.
The board has approved the proposal of investment in Ampere Vehicles by acquiring 67 percent in the first phase and further 13 percent in a span of three years.
This acquisition will accelerate the development of clean energy technology solutions for mobility needs of passengers and small businesses, company said in release.
The company to acquire 67 percent stake in Ampere for Rs 77 crore, which to be completed by December 31, 2018, while for another 13 percent stake the company to shell out another Rs 75.5 crore.
Rupee Outlook: Vivek Rajpal, Asia interest rates strategist, Executive Director, Nomura said. 
One big reason why INR is behaving in this fashion is due to its sensitivity to oil prices which is very high. The market is generally differentiating between the current account deficit and current account surplus nations. In a way, INR is suffering due to current account deficit and its price sensitivity to oil prices.
We expect the INR to head towards 71-72/$ but in the near-term there is a higher likelihood of consolidation at current levels. 
Crude Update: Oil prices inched up, extending solid gains from the previous session on a fall in US crude inventories and expected disruptions to supply from Iran and Venezuela.
International Brent crude oil futures were at $77.27 per barrel, up 0.17 percent from their last close.
US West Texas Intermediate (WTI) crude futures were up 0.27 percent at $69.70 a barrel.
The rises came after crude hit multi-week highs during the previous session. US commercial crude inventories fell by 2.6 million barrels in the week to August 24 to 405.79 million barrels. US production was flat from the previous week's record 11 million barrels per day (bpd).   
Market Update: The market traded mildly lower amid volatility ahead of expiry of August derivative contracts later today. The weakness in rupee and rising crude oil prices weighed on market sentiment.
The 30-share BSE Sensex fell 44.34 points to 38,678.59 and the 50-share NSE Nifty declined 18.90 points to 11,673 but the market breadth was positive.
About three shares advanced for every two shares falling on the BSE.
Buzzing: Share price of Laurus Labs advanced nearly 6 percent in morning as company received USFDA approval for Metformin Hydrochloride tablets.
The company has received an approval from USFDA (United States Food and Drug Administration) for Metformin Hydrochloride Tablets USP 500mg, 850mg and 1000mg which are used for treatment of diabetes.
Metformin Hydrochloride Tablets are therapeutically equivalent to Glucophage Tablets 500mg, 850mg, and 1000 mg of Bristol-Myers Squibb company.
The Product and API will be commercialized from company's Unit 2 located at APSEZ, Atchutapuram, Visakhapatnam, Andhra Pradesh.
Market Outlook: Dipen Sheth of HDFC Securities told CNBC-TV18
We were cautious on the market at 11,000, but the frontline indices rallied 9-10 percent from that levels, led by few major largecaps.
It is a narrow move with steady inflow from domestic institutional investors, financial savings have been driving this rally. In last 12 months, about $19 billion DII inflows saw by the market.
DII inflows are not going to stop. In fact, financialisation of savings in India is finding their way into equity markets.
We will see broadbased rally going ahead.
Market Opening: The market has opened flat ahead of expiry of August futures & options contracts later today. 
The 30-share BSE Sensex rose 1.83 points to 38,724.76 while the 50-share NSE Nifty fell 1.40 points to 11,690.50. 
Vedanta, Sun Pharma, UPL, Coal India, Cipla, Wipro and ITC are early gainers.
HPCL, BPCL, IOC, SBI, Kotak Mahindra Bank, Yes Bank, Reliance Industries, ICICI Bank and Maruti Suzuki are under pressure.
Nifty Midcap was up 17 points.
Dena Bank, Corporation Bank, Punjab & Sind Bank, Greaves Cotton, Laurus Labs, NFL and NALCO gained 3-8 percent.
Jet Airways, Ceat, Apollo Tyres, SpiceJet and InterGlobe Aviation are under pressure.
Rupee opens: After a marginal gap down opening the Indian rupee touched a record low of 70.81 per dollar.
It has opened marginally lower at 70.63  per dollar versus previous close 70.59.
On Wednesday, the rupee closed at a historic low of 70.59 after it plunged to all-time low of 70.65 on the back month-end dollar demand from importers and foreign capital outflows.
Yesterday rupee posted a biggest single session decline against US dollar since August 13.
The rupee has fallen by 10 percent this year so far - making it the worst-performing currency in Asia.
Market at pre-open: The pre-opening rates indicate flat start for the market with Nifty trading below 11,700, while Sensex is trading higher by around 100 points.
At 09:03 hrs IST, the Sensex is up 93.79 points or 0.24% at 38816.72, and the Nifty down 1.20 points or 0.01% at 11690.70.