Equity indices close marginally higher; Auto, FMCG stocks gain

Aug. 27 | 3.45 pm

Closing bell:  Domestic equity benchmark BSE Sensex ended 147 points higher on Tuesday led by gains in Tata Motors, Tata Steel, NTPC, IndusInd Bank and Vedanta amid positive domestic and global cues.

The 30-share index closed 147.15 points, or 0.39 per cent, up at 37,641.27, while the broader Nifty rose 47.50 points, or 0.43 per cent, to 11,105.35.

Top gainers in the Sensex pack are Tata Motors, Tata Steel, Yes Bank, NTPC and IndusInd Bank, rising up to 8 per cent. On the other hand, Bharti Airtel, Tech Mahindra, Infosys, TCS and Kotak Bank fell up to 3 per cent.

The Sensex touched a high of 37,731.51 points and a low of 37,449.69 points during the intra-day trade. The BSE market breadth was positive with 1,666 advances against 868 declines.

Aug. 27 | 2.45 pm

Indian stocks back on foreign investors' radar after stimulus package

Foreign investors may be lured back to Indian equities after the government scrapped a tax on overseas funds while rolling out measures to boost economic growth.

Singapore-based Taurus Wealth Advisors Pte., for one, is adding exposure to Indian equities and funds on a tactical basis, according to Rainer Michael Preiss, a strategist at the company, citing government measures unveiled on August 23. After a rather disappointing few months, Indian equities could benefit from renewed government support and market friendly policies. Read the full story here

Aug. 27 | 2.40 pm

Nifty sectoral indices at 2.40 pm

 

Aug. 27 | 2.32 pm

Top Nifty gainers / losers at 2.30 pm

 

 

Aug. 27 | 2.20 pm

Indian corporates under debt stress, says McKinsey study

Indian companies are under severe stress to service their debt obligations, according to a study by McKinsey & Company on the indebtedness of Asian corporates.

The share of their long-term debt having an interest coverage ratio of less than 1.5 times of operating profits rose significantly over the past decade. Read more on the insights here

Aug. 27 | 1.53 pm

Nifty Call: Buy with a stop-loss at 11,070 levels

The Sensex and the Nifty began the session on a positive note. After an initial decline, the benchmark indices started to trend up, extending yesterday’s bullish momentum. Both the indices have gained over 0.6 per cent.

Asian market are a mixed bag, the Nikkei 225 has advanced 0.96 per cent to 20,456 while Hang Seng index has slipped marginally by 0.24 per cent to 25,619.

The market breadth of the Nifty index is biased towards advances. On the other hand, the India VIX has slumped 3 per cent 16.12 levels. The Nifty mid and small-cap indices have also gained 1 per cent and 1.8 per cent respectively in today's session. Buying interest is seen in Nifty Auto and Nifty PSU Bank indices which have gained over 2 per cent each. Read more on the technicals here

Aug. 27 | 1.05 pm

Why the stock of L&T rallying over the past two weeks?

The stock of infrastructure major Larsen & Toubro (L&T) has been buzzing off late, gaining nearly 5 per cent over the past two weeks. A steady flow of orders has cheered the market. Over the last two months, the company has bagged eight orders totalling about ₹ 13,500 crore across various divisions. In the past week alone, it has bagged two sizeable orders through its power and hydrocarbon businesses.

According to reports, the power division of L&T bagged a significant order from NTPC to set up Flue Gas Desulphurisation (FGD) system at Vindhyachal Super Thermal Power Station, in Madhya Pradesh. The division had bagged similar orders in July 2019 for setting up FGD systems at three power plants of Damodar Valley Corporation (DVC) in West Bengal. This is thanks to the move of Environment Ministry, which mandated the setting up of FGD systems in existing and upcoming thermal power plants to curtail SO2 emissions. Read more on the insight here

Aug. 27 | 12.30 pm

 

Maruti Suzuki India (MSIL) Chairman, RC Bhargava, on Tuesday said that the states should also help in the growth of automobile manufacturing industries. This is because the Centre, on its own, cannot help the industry at this hour of downfall.

“Auto contributes 49 per cent to manufacturing GDP. Automobile manufacturing creates jobs and generates revenue for the States," RC Bhargava, Chairman, MSIL said here at the company's 38th annual general meeting (AGM).

He said many states in the country levy a lot of taxes on registration fees and other related expenses on purchasing of vehicles, which hampers the sales of the companies.

Aug. 27 | 12.17 pm

Maruti Suzuki not to renew contracts of 3,000 temporary employees

Maruti Suzuki India Ltd Chairman R.C. Bhargava said on Tuesday the company had not renewed the contracts of 3,000 temporary employees, as the automaker battled rising inventory amid a slowdown in demand.

Safety norms and higher taxes have “added substantially” to the cost of cars, affecting their affordability, Bhargava told shareholders at the company's annual general meeting. Read more

Aug. 27 | 12 noon

Markets update: The benchmark equity indices are holding to their gains and trading higher at the noon trade. The BSE Sensex was up 132.09 points at 37,626.21 and the Nifty index climbed 54.95 points to 11,112.80.

All the sectoral indices are trading in green except Nifty IT and Media.

Aug. 27 | 11.20 am

Gold price-spike brings gloom for retailers

The rising gold prices have taken the sheen out of the retail jewellery businesses.

On Monday, the price of yellow metal surged by ₹675 to touch a new high of ₹39,670 per 10 gram. Its steady increase since May has forced the consumers to hold back their purchases Read more on the report here

Aug. 27 | 11 am

Strides acquires USFDA approved manufacturing facility in US

Strides Pharma Science Ltd on Tuesday said its step down subsidiary Strides Pharma Inc has acquired a US health regulator approved manufacturing facility in Florida from Micelle BioPharma Inc.

“Strides Pharma Inc has acquired the manufacturing facility under an asset purchase agreement with Micelle Biopharma Inc for a consideration of USD 0.5 million (Rs 3.59 crore) and will invest up to USD 10 million (Rs 71.85 crore) to build incremental capabilities and add additional dosage formats,” the company said in a regulatory filing.

Aug. 27 | 10.55 am

Mac Charles plans to quit hotel biz in Bengaluru

The board of Mac Charles India on Monday decided to discontinue the hotel operations in Bengaluru subject to obtaining all requisite approvals.

Though it did not divulge further details, according to the company’s web site, Mac Charles owns and manages the Le Meridien, Bengaluru. The hotel includes rooms, suites, banquet halls, pools, restaurants, golf course, etc. It had posted a profit of ₹1.93 crore in Q1 of the current fiscal on revenues of ₹14.63 crore.

Aug. 27 | 10.31 am

Brigade Enterprises to turn ex-bonus

Shares of Brigade Enterprises will turn ex-bonus on Wednesday. The company had announced a bonus issue in the ratio of 1:2 (one share for every two held in the company).

For investors wishing to receive the bonus shares, Tuesday is the cut-off date, as Brigade Enterprises has set August 29 as the record date to identify the eligible shareholders.

As of June end, over 51,000 small investors held 4.21 per cent and seven mutual funds 13.94 per cent stake in the company.

Aug. 27 | 10.16 am

Rupee opens 32 paise higher at 71.70 against USD

The rupee appreciated by 32 paise to 71.70 against the US dollar in early trade on Tuesday amid revival of US-China trade talk hopes and gains in domestic equity market.

The rupee on Monday had declined by 36 paise to close below the 72 level against the US currency for the first time in nine months, hit by a ‘flash crash’ in global currencies due to uncertainty over the trade front.

At the interbank foreign exchange on Tuesday, the rupee opened at 71.70, registering a rise of 32 paise over its previous close of 72.02.

The domestic unit pared some gains and was trading at 71.85 against the dollar.

Aug. 27 | 10.15 am

Markets update: Domestic equity benchmark BSE Sensex opened over 150 points higher on Tuesday led by gains in index heavyweights L&T, ICICI Bank, SBI and HDFC Bank amid positive domestic and global cues.

At 10.15 am, the 30-share index was trading 136.28 points, or 0.36 per cent, up at 37,630.40, while the broader Nifty rose 55.85 points, or 0.51 per cent, to 11,113.70 .

In the previous session, the BSE barometer closed 792.96 points, or 2.16 per cent, higher at 37,494.12; and the Nifty reclaimed the 11,000-level, advancing 228.50 points, or 2.11 per cent, to 11,057.85.

Top gainers in the Sensex pack in early trade on Tuesday included Tata Motors, SBI, Tata Steel, L&T, Axis Bank, Bajaj Finance, IndusInd Bank and NTPC, rising up to 2 per cent.

On the other hand, Infosys was the biggest loser on the index, shedding over 2 per cent, after the IT major has bought back 11.05 crore of its shares under its Rs 8,260-crore buyback offer that began in March this year.

HCL Tech, TCS, TechM, Kotak Bank and Asian Paints too fell up to 2 per cent.

Aug. 27 | 10.02 am

Pidilite joins hands with Chetana for new JV

Pidilite Industries has entered into a joint venture with Chetana Expotential Technologies Private Ltd, a Bengaluru-based engineering technology company. Chetana has invented a technology in the field of post compressed aerated concrete wall panels. The JV company, to be established in India, will be responsible for deploying the technology and other ancillary products in India, Sri Lanka and Bangladesh. Pidilite would be the majority partner in the JV.

Aug. 27 | 9.47 am

Broker's call: Aarti Industries (Accumulate)

According to the latest update of Mordor Intelligence, global market for specialty chemicals is estimated to rise by a CAGR of 5.2 per cent during 2019-2024 driven by robust construction activities in Asia-Pacific, West Asia and African regions, and growth of oil exploration and production activities. Read more on the buy call here

Aug. 27 | 9.35 am

The math behind RBI’s Rs 1.76 lakh crore surplus transfer to the Central Government

The Bimal Jalan Committee-recommended surplus transfer by the Reserve Bank of India (RBI) has offered a much-needed respite to the Centre, in the current fiscal. Excluding the Rs 28,000 crore interim dividend already paid by the RBI to the Centre last fiscal, the Rs 1,48,051 crore of transfer in the current financial year, could make up for the shortfall in tax collections to a great extent.

True, the market had already pencilled in some windfall gains by way of RBI’s higher than the usual dividend, but what has come as a surprise is the one-time bonanza, rather than a staggered pay out as was broadly expected. Read more on the insight here

Aug. 27 | 9.25 am

Infosys closes Rs 8,260-cr buyback offer, takes back 11.05 crore shares

IT major Infosys has bought back 11.05 crore of its shares under its Rs 8,260-crore buyback offer that began in March this year.

”...The company bought back 11,05,19,266 equity shares at an average price of Rs 747.38 per equity share; and deployed an amount of Rs 82,59,99,99,430.03 deploying 99.999999 per cent of the maximum buyback size (excluding transaction costs)...till August 26,” Infosys said in a regulatory filing on late Monday night.

 

Aug. 27 | 9.15 am

Opening bell

The equity indices opened on a positive note on Tuesday tracking global cues as signs Sino-US trade hostilities might be easing for now.

The 30-share BSE index Sensex opened points 164.36 higher at 37,658.48 against the previous close of 37,494.12. Similarly, the 50-share NSE index Nifty opened up 44.95 points higher at 11,102.80 against the previous close of 11,057.85.

Aug. 27 | 9.05 am

Day Trading Guide for August 27, 2019

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

₹2255 • HDFC Bank

S1S2R1R2COMMENT
2230221522702288Initiate fresh long positions with a stiff stop-loss if the stock rebounds up from ₹2,230 levels

 

₹802 • Infosys

S1S2R1R2COMMENT
795787807812Fresh long positions are recommended with a fixed stop-loss only if the stock moves beyond ₹807 levels

 

₹242 • ITC

S1S2R1R2COMMENT
239236245248Make use of intra-day dips to buy the stock of ITC while maintaining a stiff stop-loss at ₹239 levels

 

₹123 • ONGC

S1S2R1R2COMMENT
120117126129Initiate fresh long positions with tight stop-loss if the stock of ONGC moves beyond ₹126 levels

 

₹1265 • Reliance Ind.

S1S2R1R2COMMENT
1250123512701294Consider initiating fresh long positions with a fixed stop-loss only if the stock of RIL climbs above ₹1,270 levels

 

₹280 • SBI

S1S2R1R2COMMENT
274268288284Fresh long positions can be initiated with a stiff stop-loss if the stock of SBI reverses higher from ₹274 levels

 

₹2275 • TCS

S1S2R1R2COMMENT
2255223522952315Near-term outlook is bullish for the stock. Buy in declines while retaining a fixed stop-loss at ₹2,255 levels

 

11054 • Nifty 50 Futures

S1S2R1R2COMMENT
11000109501110011150Consider initiating fresh long positions with a tight stop-loss if the contract reverses higher from 11,000 levels

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Aug. 27 | 9.04 am

Today's pick - Sadbhav Engineering (₹122.4): Buy

The stock of Sadbhav Engineering gained 11.3 per cent accompanied by above average volume on Monday. After registering an intra-day low at ₹105, it surged higher and closed in green. It has formed a bullish engulfing candlestick pattern in the daily chart implying short term trend reversal.

Investors with a contrarian view can buy the stock at current levels. Read more on the technicals here

Aug. 27 | 8.59 am

Wall Street bounces on softer trade tone

U.S. stocks rose on Monday, as major indexes bounced following a sharp sell-off in the prior session, as U.S. President Donald Trump forecast a trade deal with China and somewhat cooled investor concerns after a ramp up in combativeness derailed markets last week.

Trump said after a G7 summit of world leaders in Biarritz, France, that he believed China was sincere about the desire to reach a deal, citing what he described as increasing economic pressure on Beijing and job losses there.

Dow up 0.57%, S&P 500 up 0.61%, Nasdaq up 0.85%

 

Aug. 27 | 8.57 am

Oil rises as US-China trade comments calm markets

Oil prices rose on Tuesday after US President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.

Brent crude was up by 25 cents, or 0.4%, at $58.95 a barrel by 0214 GMT, after falling 1% in the previous session, dropping for a third day in a row. Read more on the trends in crude market

Aug. 27 | 8.55 am

Asia stocks, bond yields climb as trade war fears ebb

Asian stocks rose in step with their global peers while safe-haven bonds retreated on Tuesday, as signs Sino-U.S. trade hostilities might be easing for now helped restore investor confidence after the previous session's rout.

Supporting the market mood, U.S. President Donald Trump on Monday flagged the possibility of a trade deal with China and said he believed Beijing was sincere in its desire to reach an agreement. Global markets had been roiled at the start of the week by new tariffs from the world's two largest economies. Read more

Published on August 27, 2019