Nifty ends below 11,550; up 2% WoW

At close, the Sensex was down 167.17 points at 38,822.57, while Nifty was down 58.70 points at 11,512.50. About 975 shares have advanced, 1519 shares declined, and 147 shares are unchanged. 

Bharti Airtel, Bajaj Finance, ITC, Bajaj Finserv and Kotak Mahindra Bank were among major gainers on the Nifty, while losers were Vedanta, IndusInd Bank, Yes Bank, Zee Entertainment and Tata Steel.

All the sectoral indices ended lower led by the metal, auto, pharma, energy, infra, bank, and IT. BSE Midcap and smallcap also ended lower.

We believe IRCTC IPO offer gives investor a unique opportunity to own leading Mini–Ratna (Cat-I) with dominant market share of 72% in Railway E-Ticketing bookings. Considering its monopoly in the industry, high entry barrier business, diversified service offerings, favourable Industry Dynamics with strong levers in place to drive sustainable, profitable growth gives IRCTC a competitive advantage for long term play.

Considering strong cash generating business, high ROCE and healthy dividend yield, we recommend investors to “SUBSCRIBE” to the issue for long term basis as well as for listing gains.

Buzzing: Vedanta's scrip plunged 6 percent on BSE due to profit-booking on September 27, a day after it jumped 6.47 percent. Shares of Vedanta logged healthy gains on September 26 after reports emerged that the government was looking to sell residual stake in Hindustan Zinc.

IRCTC enjoys monopoly business in online rail ticket booking and food catering on running trains. Mobile application-based food ordering is gaining fast traction among travellers. It provides multiple caterers in tune with today’s taste and preferences of commuters.

We expect food catering and travel tourism segments to grow in mid-teens while operating margins of packaged water division to improve as more plants are commissioned. IPO looks conservatively priced at a PER of around 19x based on FY19 earnings. We recommend subscribe.

Rupee at day's high: The Indian rupee has recovered from the day's low level and trading at day's high level with volatility seen in the domestic equity market. The local currency is trading higher by 16 paise at 70.72 per dollar.

Benchmark indices are trading flat in the volatile trade on September 27 with Nifty hovering around 11,550 level.

The Sensex is up 0.65 points at 38,990.39, while Nifty is down 7.70 points at 11563.50. About 977 shares have advanced, 1272 shares declined, and 120 shares are unchanged. 

Buzzing: Shares of NTPC added 2 percent on September 27 after CLSA maintained a buy rating on the stock, with a target of Rs 165 per share.

IRCTC has unique business model and the company does not have any competition across any business segment. Based on various parameters like strong earnings profile, diversified business segment, healthy return ratio, debt free status and most importantly monopoly business, we have a positive view on the issue. We have a positive outlook for the company and we recommend investors to Subscribe to this issue.

ITC gains 2%: Shares of FMCG major ITC jumped more than 2 percent on September 27 after global research firm Morgan Stanley maintained an overweight call on the stock, with target raised to Rs 370 from Rs 360 per share.

Asian markets slips to 3-week lows: Asian shares slipped to three-week lows on Friday as the release of a whistleblower complaint against US President Donald Trump added to worries about the global economy, already reeling from the China-US trade war.

Yes Bank dips 5% as promoter offloads stake: Yes Bank touched a 52-week low of Rs 48.50, falling 5 percent intraday, on September 27 after Yes Capital Private Limited (YCPL), one of promoters of the company, sold stake.

Dollar Update: The dollar stood tall on Friday, holding near multi-week highs against most major currencies as heightened risks from political tensions to the Sino-U.S. trade war increased its safe-haven luster.

"Post a minor correction for a couple of sessions, the indices resumed the positive momentum in yesterday’s session. The recent gap area of 11,470-11,380 acted as a support and the broader markets again witnessed buying momentum. Clearly, since the near term trend is positive, traders and investors have seen this decline as buying opportunity. As of now, the trend continues to be positive wherein the above mentioned range is the immediate support. On the flipside, the swing high around 11,700 is the immediate resistance to watch. We continue with our advice or traders to trade with a positive bias," Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking said.

Snapping three months (expiry series) losing streak, renewed buying interest along with short covering move from FII’s propelling Nifty above 11,500 marks from lows near 10,600 seen during the month. Highlight for the series includes: a) Nifty posting gains of 5.7 percent with Metal index outperforming most (up 12 percent), followed by BankNifty and Auto index, gaining around 10 percent b) India VIX remained above its 3-month average (i.e. 15) c) Bouts of short covering moves seen from FII’s as Index futures positioning moved from long short ratio of 0.3x to ~1x in past few days d) Long gamma positions were the flavor of the month as writers on index options seen scrambling to cover short positions, Yes Securities said.

Market Opens: It is weak start for the Indian indices on the back of subdued global cues, with Nifty below 11,550

The Sensex is down 135.59 points at 38,854.15, while Nifty is down 43.30 points at 11,527.90. About 320 shares have advanced, 355 shares declined, and 37 shares are unchanged. 

NTPC, Infosys, Wipro, are among major gainers on the Indices, while losers are Yes Bank, Tata Motors, Nestle, Vedanta, Gail, ICICI Bank, Bharti Airtel, Kotak Mahindra Bank, Sun Pharma, JSW Steel, Lakshmi Vilas Bank and Strides Pharma.

Market at pre-open: Benchmark indices are trading lower in the pre-opening session.

At 09:02 hrs IST, the Sensex is down 161.79 points or 0.41% at 38827.95, and the Nifty down 14.30 points or 0.12% at 11556.90.

Oil prices fall: Oil prices fell on Friday, erasing more of the gains realized after the Sept. 14 attacks on Saudi Arabian oil facilities, as the rapid return of production capacity from the world’s top exporter squashed risk premiums.

Outperform call on Bharti Infratel, target at Rs 330 per share

Neutral rating on Bharti Airtel, target at Rs 370 per share

Underperform rating on Vodafone Idea, target at Rs 4.50 per share

Incumbent operators’ stock prices building in 30% mobile ARPU increase by FY22

See limited upside for stocks in the near term

Slowdown to spill over to staples

Downgrade Asian Paints, Nestle, Dabur to Hold

Expect demand moderation into Q2 & remainder of FY20 given high base

Falling input costs & bond yields, tailwinds in H1FY20, seem to be bottoming out

Recent sharp run-up in select stocks have stretched valuations 

Low probability of further re-rating for staples given slowing topline growth 

Maintain buy on ITC given attractive risk-reward post recent sharp de-rating

Like USL given healthy earnings profile in the medium to long-term

Maintain hold On HUL, Titan despite superior execution given rich valuations

Remain on sidelines on Britannia, Godrej Cons, Marico, Emami & Colgate

Target for Asian Paints raised to Rs 1,760 from Rs 1,575 per share

Target for Britannia raised to Rs 2,950 from Rs 2,550 per share

Target for Colgate raised to Rs 1,580 from Rs 1,365 per share

Target for Dabur unchanged at Rs 480 & Emami at Rs 350 per share

Target for Godrej Cons unchanged at Rs 675 per share

Target for HUL raised to Rs 2,020 from Rs 1,900 per share

Target for ITC cut to Rs 325 from Rs 360 per share 

Target for Marico raised to Rs 400 from Rs 390 per share

Target for Nestle raised to Rs 13,400 from Rs 12,000 per share & USL to Rs 770 from Rs 685 per share

CLSA on Liquidity Framework 

Better Predictability & Responsiveness Will Be Positive For Banks

Liquidity will be measured via spread between repo rate & inter-bank call rate

Structurally, RBI may keep liquidity at a slight deficit of 0.25-0.50% of liabilities 

Minimise RBI’s liquidity operations & enhance data quality

Better liquidity predictability will help banks manage growth & margins better

Buy rating, target at Rs 165 per share

THDC acquisition will help co grow its hydro capacity 2.5x 

Acquisition will double the share of renewables in its portfolio to 6%

Underweight call, target at Rs 370 per share

Morgan Stanley on United Spirits

Overweight call, target at Rs 700 per share

Reports suggest Telangana govt mulls taking control of liquor sales in state

Current excise policy of the state is due to expire by the end of September 

Overweight call, target raised to Rs 8,205 from Rs 7,181 per share

Sector volumes look to be at a trough & should turn from FY21

Co is best positioned for the upcycle

Corporate tax rates will see the capex outlook improve

Overweight call, target raised to Rs 370 from Rs 360 per share

Co one of the biggest beneficiaries of corporate tax cut

Increased pricing flexibility will strengthen long-term growth prospects

With 4% sustainable FY21 dividend yield, risk-reward is compelling

Do not expect co to raise prices in the cigarette portfolio in FY20

Overweight rating, target cut to Rs 139 from Rs 188 per share

Profitability in FY20 to be resilient despite weak demand

Cut FY20 standalone EBITDA forecast by 8%

Wall Street ends lower: US stocks slipped on Thursday as the release of a whistleblower report tied to the Democrats' impeachment move against President Donald Trump kept uncertainty high, while trade comments from China's top diplomat helped to limit losses.

Asian markets trade lower: Asian shares were on course for a second straight week of losses on Friday as the release of a whistleblower complaint against US President Donald Trump heightened uncertainties about the global economy, already reeling from Sino-US trade war

SGX Nifty: Trends on SGX Nifty indicate a negative opening for the broader indices in India, a fall of 35 points or 0.30 percent. Nifty futures were trading around 11,595-level on the Singaporean Exchange.