Sensex, Nifty end sharply lower; Auto, IT, Realty turn weak

Profit-taking seen in banking stocks too

 

After opening higher key equity benchmarks gave up all the gains in late session on profit taking amid fresh selling pressure in automobile, realty, metals, power, telecom and IT sectors.

Sectors such as automobile, IT, realty power, energy. telecom and utilities fell between 0.30% and 1.80% ahead of key macroeconomic data release.

After touching a high of 37,435.15, the 30-share index ended lower by 160.70 points, or 0.43 per cent, at 37,110.12 , while the broader Nifty too was down 59.75 points, or 0.54 per cent, to 10,975.95.

Top performers in Infra sector

Some of the infrastructure companies were trading stronger in Thursday's session.

Shares of IRB Infrastructure Developers (up 8.54 per cent), Suzlon Energy (4.00%), CG Power and Industrial Solutions (up 4.96 per cent) and InterGlobe Aviation (up 3.55 per cent) were the top performers in the index.

 

Auto shares slide

Among the components of the S&P BSE Auto index, Tata Motors Ltd (down 4.50%), Bosch Ltd (down 3.75%),TVS Motor Company Ltd (down 3.36%),Maruti Suzuki India Ltd (down 3%),Cummins India Ltd (down 2.15%), were the top losers.

Among the other losers were Eicher Motors Ltd (down 1.90%), Ashok Leyland (down 1.80%), Bajaj Auto Ltd (down 2%), Bharat Forge Ltd (down 1.15%), and Hero MotoCorp Ltd (down 0.80%).

 

Oil & Gas stocks trade lower

Major losers in the BSE Oil & Gas sector were IGL, which was down 3%, GAIL lost 2% and Reliance was down 1.80%

 

Banking stocks hold firm

Though banking stocks too slid in late trades on profit taking from investors, but the index still managed to end in the green. The BSE Bankex ended higher b;y 42.70 points or 0.40% at 31,258.85.

 

2.55 pm

SBI can be a net beneficiary of RBI’s external benchmarking mechanism

 

COMMENTS on Banking Sector  by YES Securities

 

The mandatory external benchmarking of lending rates from the coming month for fresh retail and MSME loans would likely weigh on margins of the banks, if not mitigated through a commensurate reduction in the rates on deposits. The latter could be challenging, particularly, for Private Banks who are growing at a faster pace given their stronger capital position and are also operating with a stretched loan/deposit ratio.

SBI, Bank of Baroda and some other PSU Banks who have already announced retail products linked to the repo rate or other external benchmarks are now offering home and auto loans at rates 20-30bps cheaper than before. The competitive landscape would be shaped by how aggressively these products are marketed, given they carry lower margins. But it is more likely that large Private Banks and HFCs who have overlapping customer segments (salaried and borrowers with high credit score) may have to choose between protecting margins or loan growth, till there is systemic improvement in the deposit mobilization. SBI having the stickiest deposit base, significant headroom for improving the C/D ratio and a strong balance sheet could witness a favourable trade-off of gaining meaningful market share with little margin sacrifice

SBI cuts lending rates by 10 bps

The bank also slashed the term deposit rate by up to 25 bps

Read More

Our lending rates are actually quite reasonable

There seems to be a high degree of concerted efforts to force banks to lower their lending rates in response to the 110 bps cut in the repo rate. The ...

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2.35 pm

 

 

2.35 pm

 

2.30 pm

Why is the Dilip Buildcon stock rallying recently?

 

Tie-up with Cube Highways for hybrid annuity model projects is a big positive for the company. READ MORE

 

2.15 pm

 

2.05 pm

Is the economic slowdown for real?

There were visible signs of the economy decelerating in the first half of 2019. But the decline can be contained to some extent by improving credit availability, addressing the pain points in some sectors, and stepping up capital spends

READ MORE

 

 

2.05 pm

S & P BSE TECK

 

 

2 pm

 

 

1.55 pm

 

 

1.35 pm

Nifty 50 September Futures (11,062): Tread with caution

 

Both the Sensex and the Nifty began the session with a minor gap-up open taking cues from the positive global markets and started to move sideways. The Asian markets are mixed, the Nikkei 225 is up by 0.7 per cent to 21,759 while Hang Seng index has fallen 0.17 per cent to 27,112 in today's session. The market breadth of the Nifty index is biased towards declines. On the other hand, the India VIX has slumped 3.8 per cent to 14.7 levels.

READ MORE

Index Outlook: Indices rebound from a significant base

The Sensex and the Nifty remained choppy last week, but key supports provided cushion

Read More  

1.25 pm

Wockhardt can continue to trend upwards

After hitting the upper price band on Wednesday, the stock of Wockhardt (₹338) started today's session with a gap-up open at 301. 

READ MORE

Wockhardt Q4 net loss narrows to Rs 14.47 cr

Drug firm Wockhardt on Monday reported narrowing of consolidated net loss of Rs 14.47 crore for the quarter ended March 2019.The company had posted a ...

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Wockhardt gets a booster from USFDA

 Wockhardt on Thursday said it has received zero observations from the US health regulator after inspection of its bioequivalence centre at Aurangabad ...

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12.20 pm

A weak month for life insurance as well

 

After four months of strong growth, private sector individual Annual Premium Equivalent (APE) finally slowed down to 11% y-o-y growth in August 2019 from 18-27% y-o-y growth during April-July 2019. With about 290 bps market share gain for LIC to 44%, the overall industry individual APE growth was higher at 13.9%. HDFC Life, Max Life and Bajaj Life delivered strong growth in individual APE at over 25% y-o-y. ICICI Prudential Life disappointed with decline of 10% yoy, while SBI, Birla and TATA AIA reported modest rise of 13-18% y-o-y.

Private sector individual Annual Premium Equivalent (APE) growth was strong at 11% in August 2019

Private sector players reported 12% growth in overall APE in August 2019, with 11% growth in individual APE. Overall individual industry growth was 14% as LIC’s growth was high at 17.7% as compared to 10.4% in July 2019 and decline in the preceding two months.

ICICI Life disappoints

ICICI Life reported 10% y-o-y decline in individual APE, despite a low base of 6% growth in August 2018. Average ticket size in individual non-single segment was up 2% y-o-y, while most other players have reported higher y-o-y growth. On considering overall (individual and group) adjusted APE including accrued but not received premium, its APE was down 7.8% yoy as compared to 0.9% in July 2019 and 3% in June 2019. Its shift to participating business from ULIPs has likely led to lower volumes and hence this decline.

 

 SBI Life slows down after eight months

SBI Life’s individual APE growth was up 14% yoy in August 2019 (26% YTD), lower than >20% yoy growth observed over the past six months. The overall business momentum picked up since December 2018 with 25-45% yoy growth in individual APE. Growth has, however, started to moderate from peak levels over the past three months. The company has guided about 20-22% growth for FY2020E. As such, overall growth momentum will likely remain moderate from here. The company will continue its focus on protection although yoy growth in protection (up 2X overall APE growth) will be lower in FY2020E (individual protection APE was up 2.5X in 1QFY20; 5X in FY2019).

 

Max Life remains strong.

Max Life’s growth in individual APE was strong at 28% yoy. The company has increased focus on ULIPs in the past two years although non-par savings business increased significantly in 1QFY20. Its ticket size in individual non-single segment was up by 28% yoy/2% mom. Investment in proprietary channels has led to strong growth in individual business.

 

HDFC Life moderates a bit

HDFC Life reported strong individual APE growth for a fourth straight month at 35% yoy, albeit lower than strong trends observed over the past three months (31% in April, 59% in May and 87% yoy in June 2019 and 58% in July 2019). This pulled up its overall APE growth to 36%. Average ticket size in individual non-single segment was up 52% yoy (flat mom). Strong momentum in the non-par savings business has been its driver.

 

Birla SL and Tata slow down

It appears that tables have turned at the bancassurance business of HDFC Bank. While HDFC Life was strong, growth for Birla SL and Tata AIA has been modest. Birla SL and Tata AIA reported 18% and 13% yoy growth, respectively in individual APE. Tata AIA reported 40-125% growth in the preceding four months while Birla SL was up 23-46% in that period.

 

Source: Kotak Institutional Equities

 

11.55 am

Demonetisation, faulty GST implementation behind the slowdown, says Manmohan Singh

 

The government must simplify and rationalise GST, kickstart rural consumption, revive agriculture and tackle the lack of credit for capital creation, says former PM Manmohan Singh.

READ MORE

 

 

11.45 am

 

Broker's call

ICICI SECURITIES

 

Astra Zeneca Pharma: Technical call

 

Strategy

 

Buy Astra Zeneca Pharma in the range of Rs 1,980.00 – 2080.00 for target price of Rs 2,395.00 with a stop loss of Rs 1,840.00.

Time Frame: Six months

 

Technical View

The share price has resolved out of the falling channel encompassing past four months entire decline (| 2395 – 1632) underpinned by rising volumes, indicating rejuvenated buying demand that augurs well for acceleration of upward momentum towards | 2395 in coming months

The stock has logged a resolute breakout after finding support from 52 weeks EMA (Rs 1,744) coincided with 61.8% retracement of last major up move (Rs 1,306 – 2,395), placed at Rs 1,722, indicating termination of secondary phase in turn suggesting resumption of primary uptrend.

The slower pace of retracement signifies healthy consolidation as over past four months stock has retraced 61.8% of preceding five months up move (Rs 1,306 – 2,395), signifying robust price structure.

 

AstraZeneca’s diabetes drug seen having heart-related benefits; firm to seek nod in India, too

Company looks to get regulatory nod on these additional indicators in India, too

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AstraZeneca joins hands with Nasscom to set up accelerator healthcare programme

Global biopharmaceutical major AstraZeneca and IT industry body Nasscom on Thursday joined hands to set up an accelerator programme to support ...

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Pharma sector: Signs of recovery

Sustainability of performance in the coming quarters is critical to the sector

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11.40 am

 

11.35 am

Govt's ethanol push to help sugar mills, oil companies

More ethanol capacities are likely to be added in next three years ending existing constraints; even at current oil price, ethanol blending is profitable for oil companies.

READ MORE

 

Centre hikes procurement prices of ethanol for blending with petrol

Govt expects to cut oil import bill by $1 billion annually due to this

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India’s sugar stockpile threatens to drag down global prices

The short-term oversupply is hurting the prices the most.

Read More  

11.20 am

Tax offences, failure to pay TDS up to Rs 25 lakh not be prosecuted by taxman

 

Income Tax Department has come out with a new set of guidelines for identifying and processing cases for prosecution under direct tax laws. The guidelines make it clear that cases involving tax due to less than ₹ 25 lakhs or delay up to 60 days in depositing tax will not be taken up for prosecution

READ MORE

 

11.05 am

Broker's call

ICICI SECURITIES

 

Currency Strategy (September 12):

 

Sell US$INR in range of 71.68-71.72

The dollar-rupee September contract on the NSE was at 71.81 in the previous session. Open interest increased 1.18% in the previous session.

It is expected that the US$INR to find resistance at higher levels. Utilise upsides in the pair to initiate short positions.

Intra-day strategies

 

Sell US$INR in the range of 71.68-71.72

 

10.50 am

 

Positional call from ICICI SECURTIES

 

 

10.40 am

₹2153 • TCS: Sell on rallies

 

 

S1

 

S2

 

R1

 

R2

 

COMMENT

2130211021752195Near-term outlook is bearish for the stock. Sell on rallies with a stiff stop-loss placed at ₹2,175 levels

 

READ MORE

10.35 am

Broker's Intraday Technical Calls:

ICICI SECURITIES

 

10.30 am

 

Rupee rises 36 paise against dollar

 

The Indian rupee appreciated by 36 paise to 71.30 against the US dollar in early trade on Thursday as gains in domestic equity market and fresh foreign fund inflows strengthened investor sentiments.

READ MORE

The rupee opened at 69.55 at the interbank forex market.   -  Bloomberg

 

 

10.25 am

 

 

10.10 am

₹285 • SBI: Buy SBI on dips with fixed stop-loss at ₹277 levels

 

 

S1

 

S2

 

R1

 

R2

 

COMMENT

 

277

272290298Make use of intra-day dips to buy the stock of SBI while retaining a fixed stop-loss at ₹277 levels

 

READ MORE

10.05 am

₹820 • Infosys: Initiate short on rallies with stop-loss at at ₹828 levels

 

S1S2R1R2COMMENT
814807828836

 

Make use of intra-day rallies to initiate fresh short positions while maintaining a stiff stop-loss at ₹828 levels

 

READ MORE

9.55 am

Corporate India’s financial health worsens for the fourth straight month

 

The credit profile of Indian firms has worsened to a 20-month low, adding pressure on the government to come up with more measures to kick-start a sputtering economy.

READ MORE

File Photo of workers at one of the auto component manufacturing facility in Chennai.   -  BusinessLine

 

 

9.45 am

'Nifty Futures Technical call for today

 

Observation

1) 13 & 21day EMA is placed at 10962 & 10996 levels while 89day EMA and 200day SMA is placed at 11270 and 11219 levels respectively.

2) Directional indicator is below zero line while stochastic is positive and approached to over bought zone.

 

Expectation

NIFTY will continue to trade higher for the day. Having said so NIFTY is likely to test higher levels such as 11105 – 11115. Previously mentioned resistance zone i.e.11010 would act as immediate support for the day. Any sustainable trade below 11010 we may see mild selling dragging index to lower levels till 10960 – 10950.

 

Source: Veracity brokerage

 

 

9.35 am

Apollo Hospitals extends gains

The stock of Apollo Hospitals rose nearly 0.50 per cent to Rs 1,498 on the NSE reacting positively to the media report that Apollo Hospitals' promoters would sell stake worth Rs 725 crore to pare debts

Apollo Hospitals profit jumps 69 per cent to Rs 57 crore in Q1

Apollo Hospitals reported a 69 per cent increase in net profit to ₹57 crore for the first quarter ended June 30, against ₹34 crore for the ...

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Microsoft partners Apollo Hospitals to fight cardiovascular diseases

They look to use AI to develope clinical algorithms and treatment guidelines

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Apollo Hospitals' arm HNG, AAPI ink MoU for virtual consultation

HealthNet Global Ltd (HNG), an arm of Apollo Hospitals, has entered into a Memorandum of Understanding (MoU) with the American Association of ...

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9.30 am

ONGC trades firm

ONGC stock was trading higher at Rs 126.80, up by 0.83% on the NSE today at after the public sector refiner announced that it would invest Rs 13,000 crore in Assam to drill over 220 wells

ONGC to spend $400 milllion over four years to develop blocks awarded under OALP

 Oil and Natural Gas Corporation (ONGC) will be investing close to $400 milllion in the next four years to develop the blocks it has won under the ...

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Oil PSUs eye stakes in Russia’s Vankor oilfields

The Suzunskoye, Tagulskoye and Lodochnoye oil fields are collectively known as Vankor cluster.

Read More  

 

9.25 am

Sundaram Equity Fund gets ₹358 cr

 

Sundaram Equity Fund, which closed its new fund offer (NFO) subscription on August 30, has raised ₹358 crore from 30,932 investors, the fund house said in a release.

READ MORE

 

Sundaram Equity Fund NFO: Another multi-cap fund on the block

The scheme suits investors with a high risk appetite

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Sundaram Mutual writes off ₹52-cr worth investment made in DHFL

Goes back on side-pocketing the investment due to possible breach of SEBI norms

Read More

Sundaram Mutual’s multi-cap NFO opens on Friday

Sundaram Mutual Fund is all set to launch a new fund offer — a multi-cap open-ended equity scheme — Sundaram Equity Fund. The scheme will be open for ...

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9.20 am

 

 

9.15 am

 

Nifty Pre-open session

 

9.10 am

 

9.05 am

Asian markets hit six-week high on trade war hopes ahead of ECB

Asian stocks hit a six-week high on Thursday on hopes for a thaw in US-China trade frictions and expectations that the European Central Bank would kick off another wave of monetary easing by global central banks

READ MORE

 

8.55 am

Day Trading Guide for September 12, 2019

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

 

₹2248 • HDFC Bank

 

S1

S2

R1

R2

COMMENT

2234

2220

2263

2278

The stock trades in a narrow range. Go long with a fixed stop-loss on a strong rally above ₹2,263 levels

 

 

₹820 • Infosys

S1

S2

R1

R2

COMMENT

814

807

828

836

Make use of intra-day rallies to initiate fresh short positions while maintaining a stiff stop-loss at ₹828 levels

 

READ MORE

8.50 am

Today's Pick: Balrampur Chini Mills (₹149.95): Buy

The stock of Balrampur Chini Mills was on limelight on Wednesday. It jumped 12 per cent accompanied by extraordinary volume, breaking above the key resistances

READ MORE

 

 

Balrampur Chini hits 52-week high after board nod for buyback

Shares of Balrampur Chini Mills hit a 52-week high of ₹146.2 on the BSE on Friday after the company’s board approved the buyback of fully paid-up ...

Read More  

Balrampur Chini to buyback at ₹175 per share

Announces ₹148 cr buyback offer

Read More

Balrampur Chini Q2 net up 10% at ₹91 cr

Sugar firm Balrampur Chini Wednesday reported a 10 per cent increase in its net profit at ₹90.92 crore for the quarter ended September, 2018. Its net ...

Read More  

8.45 am

US stocks end in green as China extends olive branch

Wall Street moved higher on Wednesday, led by tariff-sensitive technology and industrial stocks after China extended an olive branch ahead of next month's trade negotiations with the United States.

The S&P 500 closed above the 3,000 mark for the first time since July 30.

READ MORE

Published on September 12, 2019