Markets Live: Sensex soars 305 points on value-buying; Nifty ends at 11,370

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent. File Photo   -  Reuters

FMCG, metal stocks steal the show

3.50 pm

Closing bell

The Sensex surged 304.83 points or 0.81 per cent to end at 37,717.96, due to bargain-hunting in FMCG, metal and capital goods stocks and strengthening of rupee to 71.86 against the dollar. The Nifty ended higher by 82.4 points or 0.73 per cent at 11,369.90.

 

Sensex gainers, losers

 

Brokers said that the domestic sentiment was buoyed after the rupee rebounded from its historic low of 72.91 (intra-day) against the dollar to 71.86 in late afternoon trade.

Trading sentiment was also propped up as the country's goods exports posted a sharp increase of 19.21 per cent (year-on-year) to $27.84 billion in August this year, with growth taking place across sectors, including petroleum.

Meanwhile, Economic Affairs Secretary Subhash Chandra Garg said that the government and the RBI will do everything to ensure that the rupee does not depreciate to “unreasonable levels''.

The 30-share BSE Sensex, after a positive opening at 37,546.42, hit the day’s high of 37,752.58 and a low of 37,342. The gauge had plunged about 977 points in the previous two sessions as global trade war tensions rattled investor optimism.

 

The broader NSE Nifty, in a volatile session, recaptured the key 11,300-mark. During the day, it moved between 11,380.75 and 11,250.20.

 

Brent crude oil prices also eased to some extent after breaching the $79 a barrel mark.

Buying activity picked up ahead of IIP and inflation data due later in the day as domestic investors accumulated recently-hammered stocks amid a higher opening in European markets.

However, most other Asian markets extended losses for the sixth straight session as investors fear an escalation in the China-US trade conflict.

Meanwhile, domestic institutional investors had bought shares worth Rs 749.62 crore, while foreign portfolio investors (FPIs) sold equities worth Rs 1,454.36 crore on Tuesday.

3.35 pm

Global markets

 

Fresh sparring between Washington and Beijing over trade kept world stocks close to three-week lows, while a slight dollar pullback gave little respite to emerging markets, with the Indian rupee plumbing new record lows. Read more

3.20 pm

Bullion rates

 

Gold prices bounced back by Rs 175 to Rs 31,625 per 10 gram at the bullion market on increased buying by local jewellers, shrugging-off a weak trend overseas. However, silver slipped by Rs 40 to Rs 37,910 per kg owing to reduced offtake by industrial units and coin makers. Read more

3.10 pm

Pre-close trade

The Sensex surged 279.74 points or 0.75 per cent to 37,692.87 and the Nifty climbed 77.75 points or 0.69 per cent to 11,365.25 on heavy buying in FMCG, metal, capital goods and consumer durables stocks amid firm European cues.

 

 

Strengthening of rupee to 72.26 from intraday low of 72.91 on RBI intervention also propped up the domestic sentiment. DII buying ahead of IIP data for July and retail inflation data for August also fuelled the uptrend.

Top five Sensex gainers were PowerGrid, Sun Pharma, ITC, Adani Ports and HUL, while the major losers were Axis Bank, Tata Motors, ICICI Bank, IndusInd Bank and YES Bank.

 

Retail inflation is expected to slip below the Reserve Bank of India's medium-term target in August and would likely motivate the central bank to keep interest rates on hold, a Reuters poll showed.

“This arguably buys the RBI some breathing space. But this is hollow relief,” said Mizuho Bank in a note, amid rising oil prices and higher food inflation.

3.05 pm

Emerging market currencies

 

The Indian rupee sank to yet another record low, while most other Asian currencies traded cautiously in tight ranges against the backdrop of US-China trade tensions. The dollar index, which measures the greenback against six major peers, dipped to 95.168. Read more

3 pm

European markets

 

Oil and mining stocks led European shares higher as investors shrugged off a weaker session in Asia amid rising tensions between the United States and China. The pan-European STOXX 600 and eurozone STOXX were both up 0.5 per cent by 0845 GMT. Read more

2.50 pm

NSE index may test support at 11,064.24

 

NSE index, which has lost more than 4 per cent since it had hit a record high of 11,760.2 points on August 28, may test a support at 11,064.24 points, technicals show. Read more

2.40 pm

Telecom stocks drop

 

Telecom stocks dropped as Jio has offered a discount on top plan. Vodafone Idea Ltd and Bharti Airtel Ltd fell 2.9 per cent and 1.8 per cent, respectively. RJio has offered Rs 100 discount on its top-selling Rs 399 plan. Read more

2.30 pm

Rupee strengthens to 72.26

 

The rupee strengthened to 72.26 from intraday low of 72.91 on mild RBI intervention. The rupee sentiment was also buoyed as domestic equities rebounded on DII buying ahead of IIP and retail inflation data to be released later in the day. Read more

2.20 pm

Sensex gainers, losers

Top 10 Nifty gainers, losers

 

2.15 pm

The Sensex surged 241.95 points or 0.65 per cent to 37,655.08 and the Nifty climbed 57.35 points or 0.51 per cent to 11,344.85. Building up fresh positions by DIIs ahead of IIP data for July and retail inflation data for August boosted the domestic sentiment.

Strengthening of rupee to 72.26 from intraday low of 72.91 and firm European cues also fuelled the uptrend.

Robust oil and mining stocks drove European shares up as investors shrugged off a weaker session in Asia amid rising tensions between the United States and China.

The pan-European STOXX 600 and eurozone STOXX were both up 0.2 per cent by 0726 GMT, despite sharp falls in Asian stocks after US President Donald Trump said the United States is taking a “tough stance” with China on trade.

2.05 pm

Nifty 50 September futures (11,343)

 

The Nifty 50 futures contract remains in a downtrend. Though the contract managed to reverse higher from the day's low of 11,300, the bounce-back move lacks strength. The contract has reversed lower again, after hitting a high of 11,365. The outlook remains bearish. Read more

1.55 pm

Relief for stressed companies

 

In a breather to stressed companies, the Supreme Court has put an interim stay on the Reserve Bank of India’s February 12 circular asking banks to scrap all debt restructuring and begin insolvency process if a company delays payment even by a day. Read more

1.40 pm

'Some moderation in GDP growth expected'

 

India’s GDP growth is likely to have peaked in the first quarter of this fiscal and going ahead some moderation is expected as weaker rupee and rising oil prices remain two major headwinds for the economy, says a Credit Suisse report. Read more

1.30 pm

Domestic shares were trading marginally higher after two consecutive sessions of sharp falls, while the rupee fell to a fresh low, stoking fears of an interest rate hike by the central bank at its next meeting in October.

The 30-share BSE index Sensex was up 64.74 points or 0.17 per cent at 37,477.87 and the 50-share NSE index Nifty up 13.15 points or 0.12 per cent at 11,300.65.

Consumer staples led the gains. ITC Ltd rose 1.6 per cent, while Hindustan Unilever Ltd was the top percentage gainer with a gain of 2 per cent.

 

Meanwhile, Tata Motors Ltd fell 3.2 percent after the chief executive of its Jaguar Land Rover unit had said on Tuesday a wrong Brexit could cost tens of thousands of car jobs and would risk production for the company.

 

Investors seemed reluctant to take positions as they awaited data on IIP for July and August retail inflation, due after market hours. According to Thomson Reuters poll, retail inflation likely eased below the central bank's medium-term target on softer food prices.

If the forecast comes true, this would give the Reserve Bank of India a breather after it raised rates in its previous two meetings. But this could be temporary as the weakening rupee and rising crude oil prices would boost consumer prices.

The rupee continued its decline, hitting a new low of 72.92 per dollar, with two traders spotting mild intervention by the central bank.

“What is dominating the market is the rupee move and what it does to inflation and the rate hike, which in turn could have an impact on banking stocks. A 25 bps rate hike looks probable enough in October,” said Harendra Kumar, managing director at Elara Securities.

“Market is too worried about the currency depreciation and correction in emerging markets, which optically looks very large but is very isolated to China and select sectors on the indices.”

Meanwhile, broader Asian shares slipped to 14-month lows as investor confidence was hurt by the latest round of threats in an intensifying US-China trade conflict. - Reuters

1.20 pm

Equity and debt funds gain traction

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1.05 pm

Franklin Smaller Fund

 

The steep correction in small- and mid-cap stocks over the past six months means there is a significant opportunity for investors to bet selectively and gain over the long term. Franklin India Smaller Companies (Franklin Smaller) Fund will be a good option for investors with a reasonable risk appetite seeking above-average returns over a 5-10-year time-frame. Read more

12.50 pm

Axis Bluechip

 

Axis Bluechip is among the funds in the large-cap category that have delivered returns in high teens, close to the market benchmarks’ returns.  Its annualised return over five years is 18 per cent plus. Investors can consider buying the fund through the SIP route as part of their core portfolio. Read more

12.40 pm

Rupee trading weak at 72.83

 

The rupee was trading weak at 72.83 against the dollar due to rising crude oil prices and unabated foreign fund outflows. It hovered in a range of 72.91 and 72.63 in the morning trade. Read more

12.30 pm

MCX gold, silver

 

Gold prices drifted lower by 0.04 per cent to Rs 30,944 per 10 grams at the futures trade due to trimming down of positions by participants on weak global cues. Silver prices declined by 0.03 per cent to Rs 37,388 per kg. Read more

12.20 pm

Nykaa public issue

 

Beauty brands retailer Nykaa plans to launch an initial public offering in two years. The company also aims to double its revenue to around Rs 1,100 crore by this fiscal end. Read more

12.10 pm

The Sensex was trading up 30.03 points or 0.08 per cent at 37,443.16 and the Nifty down 0.45 point or 0.00 per cent at 11,287.05.

Investors turned cautious ahead of IIP data for July and inflation data for August to be released later in the day. Also, weak global cues due to fears of escalation in US-China trade dispute dampened investor sentiment.

Top five Sensex gainers were ITC, PowerGrid, Wipro, Sun Pharma and HUL, while the major losers were Tata Motors, Axis Bank, ICICI Bank, M&M and Hero MotoCorp.

Barring IT, TECk and FMCG, all other BSE sectoral indices were trading in the red.

 

 

12 noon

Citi gives 'neutral rating' for HDFC AMC

 

Citi has initiated coverage on HDFC Asset Management Co with “neutral” rating and a price target of Rs 1,850, saying it's a leader in an underpenetrated market. HDFC AMC stock had fallen 11 per cent since its IPO last month. Read more

11.50 am

Tata Motors drops 3%

 

Shares of Tata Motors slipped as much as three per cent as Jaguar Land Rover has issued a warning to the UK government of massive losses if Britain was to leave the European Union. Shares of Tata Motors opened on a weak note at Rs 269.80, then slipped to a low of Rs 259, down by 3.06 per cent over their previous closing price. Read more

11.40 am

China stocks fall to new multi-year lows

 

China stocks fell on Wednesday morning, dragging the Shanghai Composite and the blue-chip CSI300 indexes down to new multi-year lows, as worries over escalation in the US-China trade war hit investor sentiment, with China seeking WTO sanctions. At the midday break, the Shanghai Composite index was down 8.91 points or 0.33 per cent at 2,655.89. Read more

11.30 am

Spot gold falls to $1,194.08

 

Gold prices edged lower as a key technical resistance acted as a deterrent for the metal and the yuan weakened against the dollar on fears the US-China trade war could escalate. Spot gold was down 0.3 per cent at $1,194.08 an ounce at 0406 GMT, after hitting its lowest since August 24 at $1,187.21 on Tuesday. Read more

 

11.20 am

Forex market

The dollar index, which measures the greenback against six major peers, edged down 0.1 per cent at 95.133.   -  Reuters

 

The dollar fell as sources said Canada was ready to make a concession to the United States to resolve their talks over reworking the North American Free Trade Agreement, though lingering anxiety over U.S.-China trade tensions weighed. The dollar index, which measures the greenback against six major currencies, was 0.07 per cent lower at 95.185. Read more

11.10 am

The Sensex was trading higher by 93.81 points or 0.25 per cent at 37,506.94 and the Nifty up 20.75 points or 0.18 per cent at 11,308.25.

 

FMCG, IT, TECk, healthcare and metal indices found investors' support, while realty, auto, consumer durables and PSU succumbed to selling pressure.

 

Top five Sensex gainers were PowerGrid, HUL, Wipro, ITC and Adani Ports, while the major losers were Axis Bank, Tata Motors, M&M, ICICI Bank and Hero MotoCorp.

 

Building up of fresh positions by domestic institutional investors ahead of IIP data for July and inflation data for August to be released later in the day buoyed the domestic sentiment.

However, investors adopted a cautious approach due to lingering worries over US-China trade dispute. Asian stocks were pinned near 14-month lows. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.05 per cent, hovering near its lowest levels plumbed since July 2017 on Monday.

11 am

Brent crude climbs to $79

Iran crude exports to Asia fall.   -  Reuters

 

Oil prices rose as a report of falling crude inventories and the looming sanctions against Iran fuelled expectations of a tightening market. WTI crude futures were at $69.81 per barrel at 0047 GMT, up 56 cents, or 0.8 per cent, from their last settlement. Brent crude futures climbed 24 cents, or 0.3 per cent, to $79.30 a barrel. Read more

10.50 am

Domestic shares were trading marginally higher due to building up of fresh positions by DIIs ahead of IIP data for July and inflation data for August to be released later in the day. However, investors adopted a cautious approach due to lingering worries over US-China trade dispute.

The Sensex was trading up 56.07 points or 0.15 per centa t 37,469.20 and the Nifty up 12.55 points or 0.11 per cent at 11,300.05.

Top five Sensex gainers were PowerGrid, HUL, Adani Ports, Kotak Bank and ONGC, while the major losers were Axis Bank, Tata Motors, M&M, ICICI Bank and Maruti.

 

10.40 am

TCI Industries up 0.24%

 

TCI Industries board has allotted 475 (zero per cent) non-convertible redeemable preference shares of ₹100 each at a premium of ₹300 each to Transcorp Estates Private Ltd, an entity belonging to the promoter group of the company, for cash. Allotment of NCRPS does not result in a change in the paid-up equity share capital of the company. The NCPRS are not convertible into equity shares; and will not be listed with any stock exchange. Shares of TCI Industries were up 0.24 per cent at Rs 842 on the BSE.

10.30 am

Confidence Petroleum falls over 2%

 

Confidence Petroleum India has increased its stake in Blue Flame Industries to 75 per cent from 50 per cent. Blue Flame Industries Pvt Ltd, which has a cylinder manufacturing plant at Jharkhand, has an installed capacity of six lakh LPG cylinders per annum, mainly for supply to PSU oil companies. Shares of Confidence Petroleum were trading down 2.43 per cent at Rs 42.10 on the BSE.

10.20 am

Cadila Healthcare rises marginally

 

Zydus Cadila has received tentative approval from the United States Food and Drug Administration for Sitagliptin tablets for sale in the US markets in strengths of 25 mg, 50 mg and 100 mg. In a filing to the exchanges, the company said the drug will be produced at the group’s formulations facility at SEZ, Ahmedabad. The group has more than 217 approvals, and has so far, filed over 330 abbreviated new drug applications.  Shares of Cadila Healthcare were trading up 0.69 per cent at Rs 411.55 on the BSE.

10.10 am

Benchmark indices edged lower due to lingering worries over US-China trade dispute. Also, investors remained cautious ahead of IIP data for July and inflation data for August.

The Sensex was down 34.64 points or 0.09 per cent at 37,378.49 and the Nifty down 20.05 points or 0.18 per cent at 11,267.45.

Top five Sensex gainers were PowerGrid, HUL, ONGC, Adani Ports and ITC, while the major losers were Axis Bank, Tata Motors, ICICI Bank, Bharti Airtel and YES Bank.

Among BSE sectoral indices, realty, consumer durables, auto and banking succumbed to selling pressure, while FMCG, IT and TECk found investors' support.

 

 

10 am

Pilani Investment, Tourism Finance shares down

 

Pilani Investment and Industries Corporation and Tourism Finance Corporation board of directors will meet today to consider Q1 results for the current fiscal ended June 2018.

Pilani Investment had reported a loss of ₹1.59 crore in the previous quarter and revenues of ₹43 lakh. Tourism Finance Corporation had reported a profit of ₹10.70 crore in the March quarter on revenues of ₹55.84 crore.

Shares of Pilani Investment were trading down 1.3 per cent at Rs 2,441.

 

Tourism Finance shares were down 1.09 per cent at Rs 140.50 on the BSE.

 

9.50 am

Salzer Electronics jumps 2.7%

Shares of Salzer Electronics jumped as much as 2.7 per cent to Rs 171.25 as the promoters have increased their stake by 2 per cent to 36 per cent from 34 per cent.

The promoters of Salzer Electronics, which offers electrical solutions in switchgears, wires & cables and energy management businesses, intend to increase their holding to over 40 per cent in the next two-three years.

Following a positive open at Rs 171.25 against the previous close of Rs 166.70, the stock jumped to a high of Rs 171.25 and a low of Rs 169 on the BSE. At 9.50 am, the shares were up 1.38 per cent at Rs 169.

9.40 am

Broker's call

Centrum Broking

Aurobindo Pharma (Buy)

CMP: ₹790.85

Target: ₹1,270

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9.30 am

Rupee sinks to new low of 72.91

 

The rupee collapsed to a lifetime low of 72.91 against the dollar at the interbank foreign exchange market due to rising crude oil prices and unabated foreign fund outflows.

The domestic currency was quoting lower by 22 paise. Escalating trade war concerns, consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure,

The dollar index, which measures the greenback against six major peers, edged down 0.1 per cent at 95.133 in early trade.

9.25 am

Benchmark indices recovered today after posting steep losses in the previous session on fresh buying by funds and retail investors ahead of key macroeconomic data to be released later in the day.

Brokers said that building up of positions by domestic institutional investors ahead of index of industrial production for July and inflation data for August -- to be released later in the day -- too impacted investor sentiment.

However, a weak trend in other Asian bourses due to worries over lingering trade conflict between the US and China forced investors to adopt a cautious approach.

The Sensex was trading up 79.83 points or 0.21 per cent at 37,492.96 and the Nifty up 17.9 points or 0.16 per cent at 11,305.40.

 

On Tuesday, the Sensex crashed 509.04 points or 1.34 per cent to end at over 1-month low of 37,413.13 and the Nifty plunged 150.60 points or 1.32 per cent to 11,287.50 as fears of escalation in US-China trade war kept investors on edge.

9.15 am

Opening bell

The 30-share BSE opened at 37,420.91, up 7.78 points, against the previous close of 37,413.13 and the 50-share NSE opened at 11,285.25, down 2.25 points, against Tuesday's close of 11,285.50.

9.10 am

Today's Pick

We recommend a sell in the stock of NCC at the current levels of ₹88.4. Stop-loss can be placed at ₹93 for the target of ₹80. Read more

 

 

9.00 am

Day Trading Guide

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

₹2000 • HDFC Bank

S1

S2

R1

R2

COMMENT

1985

1960

2010

2035

Outlook is bearish. Go short and also accumulate on rallies. Stop-loss can be placed at ₹2025

 

₹734 • Infosys

S1

S2

R1

R2

COMMENT

720

700

750

765

Initiate fresh long positions with a stop-loss at ₹735 only if Infosys breaks decisively above ₹750

 

₹297 • ITC

S1

S2

R1

R2

COMMENT

295

290

300

305

Downmove is gaining momentum. Initiate fresh short positions with a stop-loss at ₹303

 

₹168 • ONGC

S1

S2

R1

R2

COMMENT

165

162

170

173

Downtrend is intact. Go short and also accumulate on rallies. Keep the stop-loss at ₹172

 

₹1238 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1230

1200

1250

1285

Hovers above a support. Go short with a stop-loss at ₹1245 if RIL declines below ₹1230

 

₹282 • SBI

S1

S2

R1

R2

COMMENT

273

260

291

300

Near-term view is negative. Initiate fresh short positions with a stop-loss at ₹295

 

₹2045 • TCS

S1

S2

R1

R2

COMMENT

2020

2000

2065

2095

Outlook is negative. Initiate fresh short positions at current levels. Keep the stop-loss at ₹2075

 

11336 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

11280

11230

11370

11400

Outlook is bearish. Go short and also accumulate on rallies. Stop-loss can be placed at 11,385

 

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

Published on September 12, 2018