Sensex mildly lower; IT, pharma soar

A weak rupee, higher crude oil prices along with selloff in midcaps were one of the major reasons behind the downtrend on the market. The Indian currency fell to an all-time, historic low of 71 to the US dollar, before settling around 70.88 to the dollar at the time of equity markets coming to a close. 

Banks were the major laggards on Friday, led by losses in names such as Yes Bank. Another index heavyweight, Reliance Industries, fell around 3 percent, managed to weigh on equity benchmarks. The Bank Nifty was largely lower through the day, along with weakness among metals, auto and energy names. Traditional defensives, IT and pharmaceuticals were the major gainers through the session. However, last hour buying also helped PSU banks end in the green. 

At the close of market hours, the Sensex closed down 45.03 points or 0.12% at 38645.07, while the Nifty was lower by 2.10 points or 0.02% at 11674.70. The market breadth is positive 1,423 shares advanced, against a decline of 1,234 shares, while 193 shares were unchanged.

Tata Motors, Power Grid, Dr Reddy’s and Tech Mahindra were the top gainers, while Yes Bank and Reliance Industries lost the most.   

Citi neutral on HCL Technologies: Shares of HCL Technologies rose 3.8 percent despite research house Citi maintained neutral call with a target of Rs 1,115 and potential upside of 10 percent.

Research house believes that deals ramp up is likely to aid in Q2/Q3, while remains neutral rated but near-term upsides is possible.

With INR depreciation and reasonable valuation, believe there could still be upsides ahead, it feels.

Goldman Sachs on Tata Motors: Share price of Tata Motors advanced 2.5 percent despite foreign research firm Goldman Sachs has maintained neutral call on the stock with a target price of Rs 283 and potential upside of 9 percent.

It has touched an intraday high of Rs 266.30 and an intraday low of Rs 258.20.

The company management remains comfortable with EBIT guidance of 4 percent for FY19, while cost reduction initiatives, better volumes and moderation in incentives to support margin, said Goldman Sachs.

Lupin gets USFDA approval: Shares of Lupin added nearly 5 percent as company received USFDA approval for generic potassium chloride oral solution USP.

The company has received approval for its potassium chloride oral solution USP, 20 mEq/15 mL (10%) and 40 mEq/15 mL (20%) from the United States Food and Drug Administration (USFDA).

Lupin's Potassium Chloride Oral Solution is the generic version of Genus' Potassium Chloride Oral Solution USP.

Buzzing: Shares of JB Chemicals and Pharmaceuticals touched 52-week high of Rs 350, gaining nearly 4 percent as company board approved buyback of its equity shares.

The board of directors of the company at its meeting held on August 31 approved the buyback of up to 33,33,333 fully paid-up equity Shares of the company (representing 3.99% of the total paid-up equity share capital of the company) at a price of Rs 390 per equity share payable in cash for a total consideration not exceeding Rs 130 crore.

The buyback is on a proportionate basis, from the equity shareholders/beneficial owners of the equity shares of the company including promoters, members of promoter group and persons acting in concert, as on the record date.  

Market Update: September series, so far, has not seen a great start as banks, automobiles, and metals, among others have weighed on indices. A selloff in midcaps is also likely to have dragged the market lower. Pharmaceuticals and IT, traditional defensives, continue to be the big gainers for the day.

The Sensex is down 79.31 points or 0.20% at 38610.79, while the Nifty is down 15.20 points or 0.13% at 11661.60. The market breadth is narrow as 1,234 shares advanced, against a decline of 1,210 shares, while 173 shares were unchanged

Sun Pharma, Wipro, Lupin and Dr Reddy’s are the top gainers, while Yes Bank and Reliance Industries have lost the most. 

Rupee outlook: “The rupee has made a new record low of 71 today on back of rising crude oil prices in the international market. Emerging market currencies are under pressure, this has also weighed on the rupee. The dollar index continues to remain higher on expectations of aggressive interest rate hike by the Federal Reserve. The RBI is intervening very selectively to contain volatility. The RBI is unlikely to intervene aggressive as the rupee is still overvalued and currencies of EMEs are depreciating sharply. The government also seems to be comfortable even if the rupee depreciates further. India’s fiscal deficit and GDP data due to release today will provide further direction to the rupee,” Rushabh Maru - Research Analyst , Anand Rathi Shares and Stock Brokers said in a statement. 

Yes Bank falls: Shares of Yes Bank fell almost 7 percent on Friday even as clarity emerged on its MD Rana Kapoor’s reappointment. Late on Thursday, the bank told exchanges that the Reserve Bank of India (RBI) had approved the continuance of Kapoor to lead the bank till further notice. Analysts are wary of the uncertainty around this appointment too.

The stock touched an intraday high of Rs 350.00 and an intraday low of Rs 338.00.

In June this year, Yes Bank's shareholders had approved the re-appointment of Rana Kapoor as the chief executive and managing director for three years, subject to final approval from the Reserve Bank of India.

"We wish to inform you that the Bank has received the RBI's approval that Rana Kapoor may continue as Managing Director & CEO of YES Bank till further notice from RBI," the bank said in a regulatory filing.

Market Update: Equities have given up all their gains on Friday morning, with the Nifty trading below 11,700. A sharp selloff in metals, banks as well as energy names is weighing on indices. Meanwhile, pharmaceuticals continue to trade higher, led by gains in Sun Pharmaceuticals. 

Midcaps have continued to outperform the benchmarks, gaining over quarter of a percent. Among gainers are Adani Ports, Wipro, HCL Tech and Bharti Infratel, while Yes Bank and Vedanta have lost the most.

The Sensex is down 11.73 points or 0.03% at 38678.37, while the Nifty is up 5.20 points or 0.04% at 11682.00. The market breadth is positive as 1,247 shares advanced, against a decline of 922 shares, while 144 shares are unchanged.

Market Update: After beginning the September series on a flat note, sharp buying in pharmaceuticals, IT and metals, among others, has helped the Nifty race past 11,700 on this morning. The Sensex is up over 100 points. Banks are currently trading flat, while automobiles are up around a percent on Nifty Auto index. 

In the broader markets, Nifty Midcap is up over half a percent as well. Among shares, Idea Cellular is up 2 percent after NCLT approved its merger with Vodafone India, while Jet Airways is down 1 percent after MCA probes the airline for siphoning off of funds. 

The Sensex is up 107.32 points or 0.28% at 38797.42, while the Nifty rose 38.90 points or 0.33% at 11715.70. The market breadth is positive as 1,257 shares advanced, against a decline of 564 shares, while 108 shares were unchanged.

Wipro, Sun Pharma, Bharti Infratel and HCL Tech are the top gainers, while Yes Bank and Reliance Industries have lost the most.   

Buzzing: Shares of telecom firm Idea Cellular gained more than 6 percent in the morning trade on Friday post the company received NCLT approval for Idea-Vodafone merger.

NCLT (National Company Law Tribunal) has approved the merger of Idea Cellular and the Indian unit of Vodafone Group Plc, reported CNBC-TV18, quoting Sources.

Foreign research house JPMorgan has maintained underweight call on Idea Cellular with a target of Rs 50 per share.

Market Opening: The market has opened flat on the first day of the September futures & options series.

The Sensex is down 32.76 points at 38657.34, while the Nifty is down 10 points at 11666.80.  About 551 shares have advanced, 397 shares declined, and 50 shares are unchanged. 

Grasim, TCS, Yes Bank, BPCL, Vedanta, Hindalco, Power Grid, Axis Bank are under pressure. Also, Nifty Bank was down 0.3 percent.

Sun Pharma, Cipla, Dr Reddy's Lab, ONGC are trading higher.

Idea Cellular gained 5 percent on NCLT approval for Idea-Vodafone merger.

Rupee Opens: The Indian rupee breached a 71 mark for the first time on Friday. It has opened at a fresh record low of 70.95 per dollar versus previous close 70.74.

Yesterday the rupee ended at fresh life time low of 70.74 the dollar due to month-end demand for the US currency from importers and rising crude oil prices.

However, during the the rupee slipped to a record low of 70.90 to a dollar.

On Thursday, rupee fell to fresh record low levels of 70.80 in the intraday session. The currency in the last few sessions has come under pressure following dollar demand by oil marketing companies and defence related buying. Apart from domestic dollar demand, weakness in Asian currencies also weighed on the rupee, said Motilal Oswal.

Yesterday, Turkish Lira fell by over 5% as resignation of the deputy central bank governor intensified market concerns over the direction of monetary policy. On the other hand, Argentina Peso fell after its central bank raised rates to 60% as it struggles to repay heavy government borrowing.

For the day, rupee is expected to quote in the range of 71 and 71.50 (Sept), it added.

Market at pre-open: The pre-opening rates indicate flat start for the benchmark indices with Nifty trading below 11,700, while Sensex is trading around 38,700.

At 09:05 hrs IST, the Sensex is up 6.69 points or 0.02% at 38696.79, while the Nifty is up 0.60 points or 0.01% at 11677.40.

Jet Airways, HPCL, Canara Bank, Bank of Baroda are trading lower in pre-opening trade.