Markets Live: Equity indices edge down, Sensex skids 160 points to 37291

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, …

12:25 pm

Oil prices drop on concern over US economy

Brent crude was up 64 cents, or about 1.1 per cent, at $59.28 a barrel at 0255 GMT. – Bloomberg

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of the US economy.

Brent crude was down 31 cents, or 0.5 per cent, at $60.18 a barrel by 0638 GMT, while US crude was down 18 cents, or 0.3 per cent, at $55.60 a barrel. Oil prices rose around 1.5 per cent in the previous session. Click here to read in full the global oil markets report.

12:15 pm

Indiabulls Housing Finance shares drop 8% on Nifty replacement

Shares of Indiabulls Housing Finance on Thursday dropped 8 per cent as Nestle India will replace the company in the benchmark Nifty 50 index from September 27.

The scrip tanked 7.97 per cent to Rs 420.80 on the NSE. Shares of Nestle India, however, rose 2.97 per cent to Rs 12,890.

Nestle India will replace Indiabulls Housing Finance in the benchmark Nifty 50 index from September 27, the National Stock Exchange (NSE) said on Wednesday.

“The replacement will also be applicable to Nifty 50 Equal Weight Index,” the bourse said in a release. – PTI

12:05 pm

Equities struggle on recession, Brexit fears

MSCI Asia-Pacific index up 1 per cent. File Photo – Reuters

Global bond yields flirted with record lows while stocks inched down on Thursday, as global recession worries from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.15 per cent, Singapore shares hit eight-month lows, while Japan’s Nikkei shed 0.07 per cent.

On Wall Street, the S&P 500 gained 0.65 per cent on Wednesday, due in part to gains in the energy sector following a rebound in oil prices. But US stock futures lost 0.2 per cent in Asia. Click here to read in full the Asian markets report.

11:55 am

USFDA nod bodes well for Unichem Labs

Unichem Laboratories has received ANDA approval from the USFDA for Solifenacin Succinate Tablets, 5-mg and 10-mg to market (a generic version of Vesicare tablets of Astellas Pharma US, Inc). The tablets are indicated for the treatment of overactive bladder with symptoms of urinary incontinence, urgency, and urinary frequency. Unichem will commercialise the product from its Goa plant. Shareholders of the company will closely monitor the execution.

11:45 am

Shell makes Series-B funding in PRESPL

Global energy major Shell, along with SBI Ventures Neev Fund has jointly made a Series-B funding of Rs 55 crore in Mumbai based bio-energy company- PRESPL.

This is the first investment of the Anglo-Dutch behemoth in Indian a bio-energy firm, and has been directly cleared by the Shell management in the Netherlands. Shell clocked $ 388.4 billion in revenues for 2018. Click here to read in full the report on Shell’s Series-B funding in PRESPL.

11:25 am

Govt sops boost sugar stocks

Stocks of sugar companies soared in an otherwise bearish market, with the Cabinet clearing fresh export concessions for sugar mills.

On Wednesday, the Cabinet approved incentives of Rs 6,268 crore ($876.74 million) to encourage cash-strapped mills to export 6 million tonnes of sugar in the sugar marketing year starting from October 1.

Shares of Bannari Amman Sugar rose two per cent to Rs 1,150, Dhampur Sugar Mills was up 0.15 per cent at Rs 151, Shashi Sugar rose 5 per cent at Rs 8, Dharani Sugar was up 17 per cent at Rs 8 and Bajaj Hindustan Sugar was up 4 per cent at Rs 6.

India is expected to produce 285 lakh tonnes of sugar in this sugar marketing year. With an inventory of 145 lakh tonnes, the total sugar supply is expected to be the highest ever at about 430 lakh tonnes, exerting huge pressure on prices. _ Our Bureau

11:10 am

Gold, silver open firm as rupee remains weak

Quick funds: With NBFCs turning cautions to lending, many customers are option for gold loans, say players. – iStock.com

Gold and silver prices opened with marginal gains in the futures market on Thursday as currency pressure prevailed.

On Thursday, the rupee weakened further to inch towards the Rs 72 levels against the dollar. The Indian rupee opened lower at Rs 71.90 and depreciated further to Rs 71.95 in the early trades.

This comes despite Wednesday’s Cabinet announcements triggering positive sentiment for the sugar industry and farmers for increased incomes in the coming days and better job prospects through the 100 per cent contract manufacturing decision. Click here to read in full the domestic gold market report.

11:00 am

Company News: Kalpataru Power Transmission

Kalpataru Power Transmission informed the exchanges on Wednesday that it received a notice from the World Bank alleging process violations in bids submitted by its transmission business on two projects in Africa more than 7 years ago. The company disagrees with the Bank’s position and intends to contest the proceedings vigorously, it added. Shares of Kalpataru Power slumped 6.95 per cent at ₹441.05 on the BSE on Wednesday.

10:45 am

Gold prices tick up on recession fears, trade uncertainty

Gold prices eked out gains on Thursday against the backdrop of recession fears, with traders tracking signs of progress on the US-China trade talks and global central banks for direction on interest rates.

Spot gold rose 0.2 per cent to $1,542.06 per ounce, as of 0331 GMT. On Wednesday, the bullion ended lower but remained around its over six-year peak of $1,554.56 hit on Monday. US gold futures were up 0.1 per cent at $1,550.80 an ounce. Click here to read in full the global gold report.

10:25 am

Rupee falls 17 paise against US dollar in early trade

Identification of currency notes is key to successful completion of cash-based transactions by visually impaired persons – FRANCIS MASCARENHAS

The rupee depreciated by 17 paise to 71.95 against the US dollar in early trade on Thursday, tracking a weak domestic equity market and persistent foreign fund outflows. Pessimism over US-China trade talks also put pressure on the domestic unit, forex dealers said.

However, a weak dollar against other major currencies overseas and softening crude prices restricted the rupee’s fall, they added. Click here to read in full the rupee report.

10:05 am

Sensex, Nifty trade on a weak note

The benchmark indices, the BSE Sensex and the NSE Nifty, were trading around 0.5 per cent lower in early session on Friday. The Sensex was at 37,291, down 160 points or 0.43 per cent lower, while the Nifty was at 11,003, down 42 points or 0.39 per cent weaker on its overnight close.

The top gainers on the Sensex were Sun Pharma, Vedanta, Tata Motors, Maruti and IndusInd Bank, while the laggards were YES Bank, ICICI Bank, HCL Tech, HDFC and Axis Bank.

The healthcare, metals, capital goods and auto sector shares rose between 0.3-0.55 per cent to prop up the BSE index, while the finance, capital goods, IT and technology sector shares weighed on the benchmark index, losing between 0.40-0.65 per cent during the session.

According to an agency report, the Sensex, which dropped over 250 points in early trade, was dragged by heavy selling in banking stocks ahead of the expiry of August derivatives amid weak cues from other Asian markets.

In the previous session, the BSE barometer settled 189.43 points, or 0.50 per cent, lower at 37,451.84. Similarly, the broader NSE Nifty fell 59.25 points, or 0.53 per cent, to 11,046.10.

During the day, investors can expect greater volatility in the market on the back of weekly and monthly expiration of the August futures and options (F&O) contracts, said Shrikant Chouhan, Head Technical Research, at Kotak Securities.

Foreign portfolio investors sold shares worth a net of Rs 935.27 crore on Wednesday, while domestic institutional investors purchased shares worth Rs 359.32 crore, provisional data showed.

The rupee, meanwhile, depreciated 18 paise against its previous close to trade at 71.95 in early session.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Korea and Japan were trading on a negative note in their respective late morning sessions.

Exchanges on Wall Street ended in the green on Wednesday.

Global oil benchmark Brent crude was trading 0.57per cent lower at 59.59 per barrel. (with inputs from PTI)

9:55 am

Oil prices pegged back by mounting concern over US economy

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of United States (US) economy. Click here to read in full the crude oil market report.

9:45 am

Yen on backfoot as returning confidence dulls safe-haven allure

The dollar held gains against the safe-haven yen on Thursday as ebbing recession worries soothed markets after earlier volatility although the pound nursed its losses as investors became increasingly worried about a hard Brexit. Click here to read in full the global forex markets report.

9:35 am

Why the stock of RBL Bank has fallen 40 per cent over the past month

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, losing about 40 per cent over the past month, since it announced its June quarter results. While the bank delivered strong performance, the management indicating possible deterioration in its asset quality in the next 2-3 quarters, had rattled investors. Click here to read in full the report on why the RBL stock has fallen 40 per cent over the past month.

9:25 am

Asian shares struggle on darkening global outlook

MSCI Asia-Pacific index up 1 per cent. File Photo – Reuters

Global bond yields flirted with record low levels while stocks struggled to recover on Thursday as economic turbulence from intensifying United States (US)-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours. Click here to read in full the global markets report.

9:15 am

Opening bell

The Sensex and the Nifty opened Thursday’s session in the red. The Sensex was at 37,283, down 168 points or 0.45 per cent lower, while the Nifty was at 10,988, down 57 points or 0.52 per cent weaker.

9.00 am

Today’s Pick: Tata Global Beverages (₹280): Buy

The stock of Tata Global Beverages jumped 5 per cent breaking above a key resistance at ₹270 on Wednesday. This rally has strengthened the short-term uptrend and also provides traders with a short-term horizon an opportunity to buy the stock at current levels.

The stock has been in an intermediate-term uptrend since early February 2019 low at ₹177. During the uptrend, the stock had decisively breached a key resistance at ₹220 in May and continued to trend upwards. Short-term trend is also up for the stock. Click here to read in full Today’s Pick on Tata Global Beverages.

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12 money-making ideas that can deliver solid returns in 4 weeks

Jay Thakkar, CMT-Head Technical and Derivatives Research, AVP Equity Research, Anand Rathi Shares and Stock Brokers said Nifty’s daily MACD …
Domestic equity indices kicked off the week on an optimistic note on Monday after Finance Ministry’s Friday announcements helped improve sentiments.

The 50-share NSE Nifty rallied over 200 points in early trade but gave up the gains within an hour to trade flat. Sensex was up 40 points at 36,741 at 10.30 am (IST).

The government on Friday rolled back a tax surcharge on overseas portfolio investors and announced a slew to sector-specific measures, trying to pump-prime the economy.

Jay Thakkar, CMT-Head Technical and Derivatives Research, AVP Equity Research, Anand Rathi Shares and Stock Brokers said Nifty’s daily MACD is in buy mode. “Hence, there is a positive divergence for the index on the daily chart, indicating the possibility of a sustained short-covering rally for a few days. On the lower side, 10,637 and 10,550 levels would be immediate supports while the immediate resistance is at 10,900. Above 10,900, Nifty can zoom towards 11,100 level,” he said.

Based on various brokerage recommendations, here are 12 stock strategies that can potentially deliver solid gains over the next 11-21 sessions.

Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research and Advisory

IndianOil | Buy | Target price: Rs 135 | Stop loss: Rs 115

The stock is set for a probable technical bounceback. After failing to break above the Rs 160-165 range, this stock saw a steady decline and attempted to form a base in the Rs 115-120 zone. The stock has tested a nine-month extended trend line support and crawled back above it after a minor violation. The stock is oversold, and the RSI has moved above 30 from the oversold area, which shows a potential bottom formation. An engulfing bullish candle has emerged on the charts and it may make the case for a technical pullback as it appeared near the key support, adding credibility to the support zone. Any close below Rs 115 will be a stop loss for this trade.

Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking

Tata Elxsi |Buy | Target price: Rs 685 | Stop loss: Rs 631

The stock consolidated for nearly three weeks after taking a strong knock of more than 30 per cent in the first half of July. On Friday, the market witnessed strong buying at lower levels, which accelerated a bullish breakout from the recent congestion zone on the counter. The kind of volume activity witnessed during this intraday surge was quite encouraging and added credence to the move. Going ahead, Angel Broking expects a decent relief rally on this counter. One can buy this stock for a target of Rs 685 over the next few days. The stop loss should be fixed at Rs 631.

Bharat Electronics | Buy | Target price: Rs 111 | Stop loss: Rs 92.40

On the daily chart, this stock has traded between two crucial moving averages for last one month with the 200-SMA acting as a strong base and 100-EMA acting as a stiff resistance. Now, the price has broken out of this range on the higher side by closing above the 100-EMA. The said breakout is supported by sizable volumes and a strong bullish candle. In addition, momentum oscillator RSI has entered the positive zone above 50, supporting the optimistic stance. “Going with all the above evidence we recommend buying this stock at current levels for a target of Rs 111 over the next few days. The stop loss can be placed at Rs 92.40,” the analyst said.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia

Axis Bank | Buy | Target price: Rs 720 | Stop loss: Rs 642

After three weeks of price action, this stock is looking quite interesting on the weekly charts with a Hammer kind of formation, as this counter bounced back from around Rs 645 level, suggesting some accumulation. Hence, sustaining above Rs 643 level, this counter can eventually head to much higher levels. “Positional traders should take this opportunity and buy into this counter for a target of Rs 720 with a stop loss of Rs 642,” the analyst said.

Britannia Industries | Buy | Target price: Rs 2640 | Stop loss: Rs 2,390

The price action of the last two trading sessions, with solid bullish candles, is looking interesting on this counter as it remained resilient during the violent downswing seen in last two sessions. This kind of price behaviour is clearly hinting at some sort of accumulation and near-term bottom around those levels. “Positional traders should buy into this counter with a stop below Rs 2,390 level on a closing basis and look for a target of Rs 2,640,” the brokerage said.

Vikas Jain, Senior Research Analyst, Reliance Securities

GAIL | Buy | Target price: Rs 145 | Stop loss: Rs 115

The stock has made a double bottom near Rs 120 and witnessed a sharp bounce from this level with positive momentum in last one month. A convergence in RSI is signalling an overall positive trend, and oversold stochastic is indicating limited downside for the stock. The stock has closed near to its short-term averages, confirming the uptrend to test the medium-term average of Rs 145 in next few weeks. Long positions can be initiated for a target of Rs 145 with a stop loss of Rs 115.

L&T | Buy | Target price: Rs 1,520| Stop loss: Rs 1,210

This stock has multi-month support near to its 34-month average and it has always witnessed a strong move from those levels to reinforce a positive stance. On the higher side, the stock will face a minor hurdle around Rs 1,390, which coincides with the long-term average on the daily charts and a crossover of the same would give a breakout. However, in case of any decline, its lower band of the falling channel near Rs 1,200 level will work as key reversal point. Long position can be initiated for the target of Rs 1,520 with a stop loss of Rs 1,210.

Jay Thakkar, CMT–Head Technical and Derivatives Research – AVP Equity Research, Anand Rathi Shares and Stock Brokers

HUL | Buy | Target price: Rs 1940 | Stop loss Rs 1,820

This stock has seen a breakout from the rectangular pattern on the daily charts with a clear buy crossover in its momentum indicator MACD. Buy this stock for the target of Rs 1,940.

NIIT Technologies | Buy | Target price: Rs 1,440 | Stop Loss: Rs 1,335

The stock has seen a breakout from the expanding triangular pattern which is a continuation pattern. The Index seems to have started wave III of wave 5 up with the momentum indicators absolutely in buy mode, hence one can buy this stock for the target of Rs 1,440.

Nandish Shah, Senior Technical Analyst, HDFC Securities

Escorts | Buy | Target price: Rs 490 | Stop loss: Rs 432

This stock has formed a bullish engulfing pattern on the daily chart. Moreover, it closed above its five-day SMA with higher volumes. The RSI oscillator has formed a positive divergence on the daily chart. “In the derivative segment, we have seen long build up in the Escorts futures. Therefore, we recommend buying at current market price of Rs 453 and add more on dips around Rs 445 for the upside target of Rs 490, keeping a stop loss of Rs 432 level,” said Shah.

Shrikant Chauhan, Head of Technicals, Kotak Securities

SBI | Buy | Target: Rs 288 | Stop loss: Rs 262

The weekly RSI (momentum oscillator) is currently at 35 and provides an opportunity for traders, who missed the bus earlier. It also usually leads to a dead-cat bounce and provides opportunity for quick returns.

M&M | Target price: Rs 565 | Stop loss: Rs 520

This stock is diverging positively on a daily basis, which is an indication of a shift or pause in the prevailing trend, which is downward. The stock has also formed double/higher bottom at Rs 509 against Rs 502.55 and is available to buy at multi-year lows.

(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)

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Stock market update: IT shares dip; Infosys down over 1%

Shares of Infosys (down 1.63 per cent) , Tech Mahindra (down 1.59 per cent) , Oracle Financial Services Software (down 1.34 per cent) and Tata Elxsi …
NEW DELHI: IT shares were trading lower in Monday’s morning session.

Shares of Infosys (down 1.63 per cent) , Tech Mahindra (down 1.59 per cent) , Oracle Financial Services Software (down 1.34 per cent) and Tata Elxsi (down 1.23 per cent) were trading with losses.

HCL Technologies (down 1.20 per cent) , Mindtree (down 0.80 per cent) , Wipro (down 0.78 per cent) and Infibeam Avenues (down 0.63 per cent) too were trading lower.

The Nifty IT index was trading 1.04 per cent down at 15,652.45 around 10:02 am.

Benchmark NSE Nifty50 index was down 29.65 points at 10,799.70 while the BSE Sensex was down 64.33 points at 36,636.83.

Among the 50 stocks in the Nifty index, 17 were trading in the green, while 33 were in the red.

Shares of Vodafone Idea, YES Bank, Ashok Leyland, SBI, Tata Motors, Bank of Baroda, PNB, SAIL, DLF and ICICI Bank were among the most traded securities on the NSE.

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US Market Falls Tuesday

The Matthews Pacific Tiger Fund (Trades, Portfolio) and Jim Simons (Trades, Portfolio)’ Renaissance Technologies sold out of the stock. Gainers.

U.S. stocks were in the red on Tuesday. The Dow Jones Industrial Average declined 0.66% to 25,962, the S&P 500 index fell 0.79% to 2,900 and the Nasdaq Composite Index slid 0.68% to 7,949.

Shares of Baidu Inc. (NASDAQ:BIDU) gained more than 4% after announcing secondquarter results. The company posted earnings of $1.47 per share on $3.84 billion in revenue, reflecting 1.1% growth from the prior-year quarter. The company beat earnings estimates by 55 cents and revenue expectations by $120 million.

The operating income was 233 million yuan ($31.5 million), while the operating margin was 1%. The operating income for Baidu Core was 2.1 billion yuan, and the operating margin was 11%.

Further, the non-GAAP operating income was 2.0 billion yuan, and the non-GAAP operating margin was 7%.The non-GAAP operating income for Baidu Core was 3.5 billion yuan, and the non-GAAP operating margin was 18%.

Moreover, the adjusted earnings before interest, taxes, depreciation and amortization was 3.4 billion yuan and the adjusted Ebitda margin was 13%.

Looking ahead to the third quarter, the company expects revenue to be between 26.9 billion yuan and 28.5 billion yuan.

During the quarter ended June 30, the Tweedy Browne (Trades, Portfolio) Global Value Fund boosted its stake by 74.2% to 1,356,297 shares. Steven Romick (Trades, Portfolio) reduced his holding by 1.5% to 1,791,516 shares. The Matthews Pacific Tiger Fund (Trades, Portfolio) and Jim Simons (Trades, Portfolio)’ Renaissance Technologies sold out of the stock.

Gainers

Losers

Global Markets

The main European stock markets traded in the red. The U.K.’s FTSE 100 declined 0.90%, France’s CAC 40 dipped 0.50%, Germany’s Dax fell 0.55% and Spain’s IBEX 35 retreated 1.32%.

In Asia, Japan’s Nikkei 225 gained 0.36%, India’s BSE Sensex lost 0.20%, Hong Kong’s Hang Seng fell 0.23% and China’s Shanghai Composite slid 0.11%.

Disclosure:The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio

Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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D-Street Buzz: PSU banks slip led by BoB; Britannia hits 52-week low, Infosys, TCS gain

Benchmark indices remained volatile with the Sensex shedding 89 points to 37,312 and the Nifty is lower by 39 points to 11,014. Nifty PSU Bank is …

Benchmark indices remained volatile with the Sensex shedding 89 points to 37,312 and the Nifty is lower by 39 points to 11,014.

Nifty PSU Bank is down over 2 percent dragged by Bank of Baroda, Bank of India, IDBI Bank, Union Bank of India, Punjab National Bank, State Bank of India and Canara Bank.

The midcap index shed a percent, the top losers being DHFL which is down over 6 percent followed by Century Textiles, Dish TV, Federal Bank, GMR Infra, M&M Financial Services, NBCC and SRF among others.

From the metal space, the top losers are Hindustan Zinc, NMDC, SAIL, Coal India, Jindal Steel & Power and Hindustan Copper.

However, Nifty IT is the outperforming sector after rupee remained weak against the US dollar. The top gainers are Infosys, Tata Consultancy Services, Wipro, Mindtree and HCL Tech.

Selective auto stocks are trading in the green led by Maruti Suzuki, Bajaj Auto, Motherson Sumi Systems, Tata Motors and Hero MotoCorp.

India VIX marginally up 0.72 percent and is trading at 16.87.

The top Nifty50 gainers include Infosys, Wipro, TCS, Bharti Infratel and Maruti Suzuki while the top losers are YES Bank, Indiabulls Housing Finance, IndusInd Bank, UltraTech Cement and Britannia Industries.

The most active stocks are YES Bank, Indiabulls Housing, Reliance Industries, ICICI Bank and Maruti Suzuki.

180 stocks have hit 52-week low on BSE including NCC, NBCC, SAIL, Britannia Industries, BHEL and Cummins India among others.

528 stocks advanced and 1151 declined while 428 remained unchanged on the NSE. On the BSE, 688 stocks advanced, 1267 declined and 125 remained unchanged.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.

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