Skip to main content

Market Live: Sensex up 100 pts, Nifty above 9950; Aditya Birla Capital lists at Rs 237.50

Bajaj Auto gained 2 percent on August sales data. Dr Reddy's Labs surges 6.5 percent on settlement for drug.

10:47 am Manufacturing PMI: India's factory activity unexpectedly expanded in August, snapping back from a contraction the previous month, as disruptions stemming from confusion over a new national sales tax eased, a business survey showed on Friday.

The rebound suggests that India's economic growth rate, which unexpectedly slipped to three-year low of 5.7 percent in the April-June quarter from a year ago, may also improve in the current quarter.

The Nikkei/Markit Manufacturing Purchasing Managers' Index rose more than three points to 51.2 in August from 47.9 in July, beating the median economist forecast of 49.3 in a Reuters poll. A reading above 50 indicates expansion. STOCK FREE TIPS


That was the biggest one-month jump in 5-1/2 years.

10:35 am Buzzing: Shares of Sadbhav Engineering advanced 4.6 percent intraday as it has declared lower bidder by government of Gujarat.

The company has been declared the successful bidder (L1) in respect of the bid invited by road & building department, government of Gujarat for the two projects on EPC Mode for aggregating value of Rs 900 crore.

The projects include, upgradation to 6 lane with paved shoulders of Sayla-Bamanbore section of NH 8A on EPC mode in the state of Gujarat.

The other project includes, upgradation to 6 lane with paved shoulders of Bagodara-Limbdi section of NH 8A.

Both the above projects are part of 215 kms long stretch between Ahmedabad and Rajkot.

10:20 am Auto sales: Maruti Suzuki India recorded healthy growth of 23.8 percent in August by selling 1.63 lakh shares compared with 1.32 lakh units sold in same month last year.

The growth was largely driven by passenger vehicles sales that grew by a whopping 28.4 percent to 1.16 lakh units in month gone by.

Total sales numbers were ahead of a CNBC-TV18 poll that estimated at 1.58 lakh units for the month.

Passenger vehicles also boosted domestic sales growth that was 26.2 percent at 1.52 lakh units against 1.19 lakh units sold in corresponding month of previous year.

10:11 am Chart of the Day: Earnings growth could rise into double digits from the September-2017 quarter onwards, CLSA said in a strategy report.

10:00 am New listing: Aditya Birla Capital listed at Rs 237.50 on the National Stock Exchange, which was 5 percent lower compared with pre-opening price of Rs 250.

In fact, the stock is locked at 5 percent lower circuit amid heavy volumes.

Grasim Industries gained 1.6 percent while Aditya Birla Money fell nearly 4 percent.

9:59 am Market Check: Equity benchmarks extended gains in morning trade as the 30-share BSE Sensex was up 127.20 points at 31,857.69.

The 50-share NSE Nifty reclaimed 9,950, up 37.40 points at 9,955.30.

About 1,325 shares advanced against 426 advancing shares on the BSE.

9:53 am Experts' take on GDP: Sonal Varma of Nomura said given the lower Q2 print, the research house is revising full-year forecast to 6.7 percent in 2017 versus 6.9 percent earlier, before it accelerates to 7.8 percent in 2018.

Even as headline GDP data has disappointed, the turnaround in private services suggests that the growth cycle will head higher once the GST effects fade, she added.

From the RBI's perspective, the GDP data is disappointing, but the current slowdown is largely due to GST, which should be seen as transitory, she feels.

According to her, focus remains on inflation, which is on an upward trajectory.

"Given our view that both growth and inflation are headed higher in the next 6-9 months, we expect the RBI to stay on hold," Verma said.

9:50 am Pre-opening for new entrant: Aditya Birla Capital settled at Rs 250 per share in pre-opening on NSE.

9:45 am New entrant: Aditya Birla Capital will list on bourses today.

Aditya Birla Capital is the demerged company from Grasim which holds controlling stake in financial services businesses of the group. The demerger and listing of financial services business under one umbrella was  part of the group restructuring exercise and was aimed at unlocking value for shareholders.

"Quality company with controlling stake in Aditya Birla group’s asset management, insurance and lending businesses is good investment opportunity for long term investors," Sharekhan said.

9:40 am FII View: Sakthi Siva of Credit Suisse said the four most overvalued markets on price-to-book value versus return on equity valuation model are India, Indonesia, Philippines and Malaysia.

While historically markets tend to be overvalued because of investors' perception of structural growth and therefore the ability to deliver on earnings but all four are associated with downgrades to 2017 estimated consensus EPS in August, she added.

"While we have previously highlighted three years of cuts to 2017 expected consensus EPS for India, we highlight that EPS cuts in August are not one-off for the other three as well. We re-iterate underweight on the 'Expensive 4' club," Siva said.

9:29 am Buzzing: Shares of Welspun Enterprises rose more than 6 percent in the early trade on the back of letter of award from National Highways Authority of India.

"The company has received letter of award from National Highways Authority of India (NHAI) for the six-laning of Aunta-Simaria section of NH-31 in the state of Bihar on hybrid annuity model (HAM), as per company release.

"The company will develop the project stretch of 8.15 km at a bid project cost of Rs 1161 crore, and shall receive Rs 9.90 crore / year as O&M payments along with the annuity and interest thereon from NHAI for a period of 15 years post-construction."

With the award of this project, the company has built a portfolio of four HAM projects totalling to Rs 4,129 crore.

9:15 am Market Check: The NSE Nifty started off September series on a flat note on Friday but the broader markets outperformed, rising half a percent.

The 30-share BSE Sensex was up 25.19 points at 31,755.68 and the 50-share NSE Nifty rose 6.2 points to 9,924.10.

Bajaj Auto gained 2 percent on August sales data. Dr Reddy's Labs surges 6.5 percent on settlement for drug.

TCS, HCL Technologies, HDFC, NTPC, ITC and HUL were under pressure.

Nifty Midcap was up 0.5 percent as about four shares advanced for every share falling on the NSE.

Sun TV Network, Welspun Enterprises, Manappuram Finance, Reliance Capital, Nalco, Hindustan Zinc, IRB Infrastructure, BEML, Grasim Industries, Chennai Petroleum and Strides gained up to 5 percent. Infibeam, Petronet LNG and Just Dial fell 1-3 percent.
www.shristocktips.com

Comments

Popular posts from this blog

Nifty could slip towards 9,900; 3 stocks which could give up to 11% return

A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

Arvind Ltd: SELL| Target Rs345| Stop Loss Rs410| Return 11%

On the weekly chart, Arv…

Market Update: PSU bank index outperforms as PNB, Syndicate Bank jump 2-5%; JP Associates zooms 11%

The market breadth was in favour of the advances with 957 stocks advancing while 668 declined and 383 remained unchanged. On the other hand, in the BSE, 1176 stocks advanced and 888 declined and 108 remained unchanged.

The Indian markets on Friday morning were trading flat with the Nifty shedding 51 points or 0.49 percent  while the Sensex was down 178 points.

The Nifty PSU banking index was up 0.6 percent led by stocks like Syndicate Bank which jumped 5 percent followed by Allahabad Bank which gained over 3 percent. IDBI Bank and OBC were the other gainers. PNB gained 2.38 percent.

The top Nifty gainers included Mahindra & Mahindra and Aurobindo Pharma which were up 1.7 percent each followed by UPL, Yes Bank and Zee Entertainment.

The top Nifty losers included IOC and BPCL which fell 2 percent each followed by HPCL, Tata Motors and NTPC.

The most active Nifty stocks included IDBI bank which jumped over 3 percent while JP Associates zoomed over 10 percent after Rakesh Jhunjhunwala…

HDFC Sec retains sell on Bharti Infratel, reduces target to Rs 310 despite 22% fall in last 2 months

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

Bharti Infratel shares declined 1.5 percent to close at Rs 368 on Tuesday after HDFC Securities has reiterated its Sell rating on the stock with revised target price at Rs 310 (from Rs 387 per share) despite sharp fall in last two months. INDIAN STOCK TIPS

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

"Target price is based on 20x Dec-19E EPS (Rs 356) for business as usual (versus 24x earlier) less impact of Rs 60 per share from Vodafone-Idea merger (versus Rs 39 per share earlier) and likely acquisition of Vodafone-Idea stake in Indus at enterprise value of Rs 50 lakh per tower (+Rs 15 per share)," the research house said.

It further said the key reason for the de-rating is instant loss of tenancies on merger of Vodafone-Idea and impact of Reliance Communications and Aircel businesses’ scaling down.

This would push back Bharti Infrat…