Sensex gains 164 points, Nifty closes above 11,000; banks, auto, FMCG stocks lead

09 Sep 2019

Market Outlook

"In the absence of any major event, domestic macroeconomic data and global cues would dictate the market trend ahead. We expect recovery to extend further and Nifty to retest 11,150. Traders should prefer private banks, auto and infra counters for long trades while defensive viz. pharma and FMCG may continue to trade lacklustre," Ajit Mishra, Vice President, Research, Religare Broking said.

Gainers and Losers at Close

Among Nifty50 stocks, Yes Bank, UPL, Maruti Suzuki, L&T and Kotak Mahindra Bank were top gainers, rising 2-4.5 percent whereas HCL Technologies, Infosys, Tech Mahindra, Eicher Motors and Bajaj Auto were losers.

Among midcaps, RBL Bank, Blue Dart, NBCC (India), GE T&D India and Muthoot Finance rallied 4-7 percent whereas Aditya Birla Finance, Ajanta Pharma, Glenmark, Vakrangee and Torrent Pharma slipped 2-3 percent.

Bonus to Ashok Leyland Employees

Ashok Leyland will give 5.42 percent bonus on FY19 profit to 6,146 employees, reports CNBC-TV18 quoting unnamed sources.

The agreement between management and employees to be signed on September 11 and company's bonus amount to employees will now total Rs 107.56 crore, sources said.

Market Closing

Benchmark indices ended in green with the Nifty closing above 11,000 levels for first time in last five sessions.

The BSE Sensex was up 163.68 points at 37,145.45 and the Nifty50 rose 56.80 points to 11,003. About 1,583 shares advanced against 929 declining shares on the BSE.

The broader market outperformed frontliners with the Nifty Midcap index rising over a percent.

USFDA Approval

Pharma major Lupin said it has received approval for its Ethacrynic Acid tablets USP, 25 mg, from the United States Food and Drug Administration.

Lupin's Ethacrynic is the generic version of Edecrin tablets of Bausch Health Americas, Inc.

The drug is indicated for treatment of edema when an agent with greater diuretic potential than those commonly employed is required.

August MF Data

Liquid fund inflow jumped quite sharply to Rs 79,428 crore in August, from Rs 45,441 crore in previous month.

Credit risk outflow declined to Rs 2,270 crore in month gone by, against outflow of Rs 3,411 crore in July.

ETFs sold Rs 1,717 crore of equity shares in August against inflows of Rs 12,353 crore in previous month.

McLeod Russel seeks debt restructuring

Bulk tea producer McLeod Russel India, a part of the Williamson Magor group, is in talks with the bankers for restructuring its debt, a company official said on Monday. The company's short and long-term debt amounts to around Rs 1,700 crore.

"We are keen for a restructuring of debt for which discussions with the bankers are on. We are trying to give a proposal through SBI Caps for conversion of short-term loans into long term and also reduction of interest rates", said McLeod Russel CMD Aditya Khaitan on the sidelines of the company's annual general meeting.

Banks look at debt recast plan for Suzlon:

Loss-making Suzlon Energy's lenders may be forced to take a haircut on loans due to lack of interest from buyers, according to a report in The Economic Times.

Two international companies had expressed interest in acquiring a stake in the wind turbine maker but a deal did not materialise, the report said.

Quess Corp jumps 6% after CCI clears acquisition of stake in company by Amazon

Shares of Quess Corp rallied 6 percent intraday on September 9 after the fair trade regulator Competition Commission of India (CCI) cleared the acquisition of equity share capital of the company by Amazon.com NV Investment Holding LLC.

The technology and business services provider, in a regulatory filing on July 12, had said its board had approved the issuance of more than 7.54 lakh equity shares to Amazon.com NV Investment Holdings LLC for Rs 51 crore at an issue price of Rs 676 apiece by way of a preferential allotment.

The investment would be going to Quess Corp's wholly-owned subsidiary Qdigi Services Ltd, it said.

Market Outlook

"We believe market will trade at current level with negative bias. We think domestic investors will support market but to a limited extent," UR Bhat, Fund Manager at Dalton Capital Advisors said in an interview to CNBC-TV18.

He said things may improve sequentially due to festive season, but not year-on-year. "Private sector banks will continue to do well and it is the time to look at auto names from 3-year time frame, as valuations are in favour."

JPMorgan Close To Winning Lead Advisory Role For Saudi Aramco IPO

JPMorgan Chase & Co is close to winning the lead advisory role for Saudi Aramco's initial public offering, a source familiar with the situation said on Sunday.

Reuters reported last month that Aramco formally asked major banks to submit proposals for potential roles in its planned IPO. A final decision is likely to come later this week, the source told Reuters, asking not to be identified.

Saudi officials want to push ahead with a listing as early as November, the source said, adding that the tentative plan is to first list on the domestic exchange and then to sell stock in an international listing in 2020. Source: Reuters.

Asia Stocks Gain

Asian stocks edged higher amid a cautious mood as investors pinned their hopes on expected global stimulus to support slowing growth in the world's major economies.

Global equity markets also received a lift after the Chinese central bank's move on Friday to cut how much cash banks must hold in reserve, releasing liquidity to shore up an economy hit by the Sino-US trade conflict.

China's Shanghai Composite, South Korea's Kospi and Japan's Nikkei gained half a percent each.

August SIAM Data

Passenger car sales in August 2019 fell by 41.1 percent to 1.15 lakh units and 2-wheeler sales declined 22.2 percent to 15.1 lakh units compared to same month last year.

Commercial vehicle sales dropped 38.7 percent to 51,897 units? and passenger vehicle sales plunged 31.6 percent to 1.96 lakh units YoY.

Nifty Hovers Around 11,000:

Benchmark indices continued to trade higher with the Sensex rising 188.96 points to 37,170.73 and the Nifty climbing 53.60 points to 10,999.80.

About two shares advanced for every share falling on the BSE.

D-Street Buzz: Nifty Metal underperforms dragged by Tata Steel; UPL jumps 2%, Tata Motors slips

The top Nifty50 gainers include UPL, Indiabulls Housing Finance, Hindustan Unilever, ICICI Bank and Sun Pharma while the top losers are Tata Motors, HCL Tech, Eicher Motors, Tech Mahindra and Bharti Infratel.

Market Outlook

"The coming week is also a holiday-shortened one and markets will be eyeing macroeconomic data of IIP and CPI Inflation scheduled on September 12. Besides, global cues, movement of the crude and currency market trend will also remain on their radar," Ajit Mishra, Vice President, Research, Religare Broking said.

"We reiterate our bullish yet cautious approach for the coming week as well. A decisive break above 11,000 would help Nifty to test 11,250-11,300 ahead. In case of decline, 10850-10,750 zone would provide the needed cushion, thanks to existence of crucial moving average support (100 EMA) on the weekly chart," he added.

Market Off Opening Lows:

Benchmark indices were off their opening lows. The Sensex was down 64.23 points at 36,917.54 and the Nifty fell 19.40 points to 10,926.80, but the market breadth was positive.

About three shares advanced for every two shares falling on the BSE.

Technical Outlook

"Nifty is trading below 20, 50 and 100 day SMA's which are important short term moving average, indicating negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11,200-10,750 with mixed bias," Rajesh Palviya of Axis Securities told Moneycontrol.

Metal Index About To Turn Oversold

Technically, Metal Index doubled in 2 years as it gained 2,800 points over 1,400, however, in the last 21 months it has lost about 2,100 points, which is nearly 75 percent erosion.

"It implies that the sector is about to turn oversold and we could see starting of value buying or contra buying at the current or little lower levels," Shrikant Chouhan, Senior VP - Technical Research at Kotak Securities said.

Order Win

L&T said buildings and factories business has secured a prestigious residential project from the City and Industrial Development Corporation of Maharashtra Limited (CIDCO) to construct 23,432 dwelling units with on-site infrastructure works at various locations in Navi Mumbai.

"The project, being part of the Pradhan Mantri Awas Yojana (PMAY), envisages construction of Economically Weaker Section (EWS) and Low-Income Group (LIG) type of dwelling units. The building configurations vary from 13 to 20 storeys. This is a fast track project to be completed within stringent timelines," company added.

Market opens: It is negative start for the Indian indices with Nifty below 10,900.

At 09:18 hrs IST, the Sensex is down 151.08 points or 0.41% at 36830.69, and the Nifty down 42.40 points or 0.39% at 10903.80. About 375 shares have advanced, 369 shares declined, and 55 shares are unchanged.

Asian Paints Indiabulls Housing, UPL and Sun Pharma and Cipla, are among major gainers on the indices, while losers are Maruti Suzuki, Tata Motors, Eicher Motors, M&M, Hero MotoCorp, HDFC Bank, Kotak Mahiondra Bank, Axis Bank and JSW Steel, Yes Bank, TCS and Bajaj Finance.

Among sectors, except pharma other indices are trading lower led by auto, metal, energy, bank and IT.

Rupee Opens: Indian rupee opened flat at 71.70 on Monday against Friday's close of 71.72 per dollar.

Market at pre-open: Benchmark indices are trading flat with positive bias in the pre-opening session on September 9.

At 09:02 hrs IST, the Sensex is up 87.95 points or 0.24% at 37069.72, and the Nifty up 13.50 points or 0.12% at 10959.70.

USFDA issues 2 observations to Shilpa Medicare: USFDA inspected the company's Finished Dosage Formulation Facility (Sterile and Non-sterile Dosage Forms) located at Jadcherla (Telangana State) from August 29 to September 06, 2019. The inspection concluded with two (2) observations. There were no repeat observations or Data Integrity (DI) related observations.

Crude Update: Oil rose on Monday after a Saudi official said there would be no change in Saudi Arabia’s OPEC policy as Prince Abdulaziz bin Salman was made the new energy minister for the world’s biggest crude exporter over the weekend.

Asian markets mixed: Asian stocks eked out modest gains on Monday, amid a cautious market mood as investors pinned expectations on likely stimulus to support growth in the world’s major economies, which showed further signs of struggle.

SGX Nifty: Trends on SGX Nifty indicate a positive opening for the broader indices in India, a gain of 15.50 points or 0.14 percent. Nifty futures were trading around 10,975-level on the Singaporean Exchange.