Closing bell: Sensex surges 372 points, Nifty settles at 11,515 led by financial stocks
9 min read.Updated: 14 Sep 2018, 05:02 PM ISTNirav Vyas
BSE Sensex closed 372.68 points up at 38,090.64, while the Nifty 50 ended 145.30 points higher at 11,515.20. Here are the highlights from the markets
Mumbai: BSE Sensex and NSE’s Nifty 50 gained on Friday led by heavy gains in financial, realty and pharma stocks. Moreover, positive sentiment in global equities also boosted local markets. Stocks in Europe gained along with U.S. equity-index futures as prospects for U.S.-China trade talks and action by Turkey to support its currency fostered a positive mood. The rupee and 10-year government bond prices rose after retail inflation for August fell below the RBI’s medium term target of 4% for the first time in 10 months. Meanwhile, FIIs sold shares worth Rs 1,086.39 crore on net basis, while DIIs purchased equities worth Rs 541.44 crore on Wednesday, provisional data showed. Markets were closed on Thursday on account of Ganesh Chaturthi. Here are the highlights from the markets:
BSE Sensex closed higher by 372.68 points, or 0.99%, to 38,090.64, while the Nifty 50 ended 145.30 points, or 1.28%, up at 11,515.20. BSE MidCap and SmallCap outperformed the benchmark and rose 1.62% and 1.38%, respectively.All the sectoral indices on BSE advanced with realty gaining most at 3.29%. Basic materials, power, metal, consumer durables, utilities and oil and gas rose over 2%. Vedanta, HPCL, Power Grid and NTPC were among the top gainers, whereas Coal India, Infosys, HCL Tech and GAIL were the top losers.
14 Sep 2018, 03:26:00 PM IST
Bharti Airtel picks banks for London IPO of Africa business
Bharti Airtel shares jumped 3.7% to Rs 388.95 after Reuters reported that the company has chosen UBS, JP Morgan and Citi to coordinate the London initial public offering of its Africa business. Bharti Airtel owns telecom assets in 14 African countries. In the quarter ending June 2018, Africa revenue was Rs 20,100 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) were Rs 6800 crore. Read more
14 Sep 2018, 03:16:00 PM IST
Auto component firms piggyback on Class 8 truck demand in US
The recent surge in Class 8 truck sales in the US is expected to drive revenue growth of firms such as Bharat Forge, Ramkrishna Forgings, Motherson Sumi and GNA Axles
Karnataka allows Shri Keshav Cements to sell excess solar energy
Shri Keshav Cements and Infra Ltd shares traded 14.38% up at Rs 90.70 after the company said Karnataka government permitted the company to sell excess solar energy produced in open market.
14 Sep 2018, 02:42:00 PM IST
Ashok Leyland shares rise 4% after winning order
Ashok Leyland Ltd shares rose 3.97% to Rs 133 per share after the company said that it has won an order from Bangladesh Road Transport Corp. for the supply of 200 buses.
14 Sep 2018, 02:24:00 PM IST
High valuations of appliance manufacturers get a reality check
Shares of consumer electrical goods companies have soared so high that a few of them are even trading only a little below multiples of leading consumer staple stocks
Investors have taken a shine to shares of consumer electrical goods companies. Their shares have soared so high that a few of them are even trading only a little below multiples of leading consumer staple stocks @sree_rsrhttps://t.co/pSySDgU9N8
Kwality shares traded 2.33% lower at Rs 20.95. The company reported a profit of Rs 1.04 crore in the June quarter, compared to Rs 27.88 crore a year ago. Revenue from operations stood at Rs 1,262 crore in the quarter, compared to Rs 1,572 crore in the same period last year.
14 Sep 2018, 01:42:00 PM IST
Tata Elxsi extends agreement with Airtel Digital TV, shares gain
Tata Elxsi shares jumped as much as 1.96% to Rs 1,356.65 per share. The company announced that it has extended its partnership with Airtel Digital TV to deliver an engaging digital platform for customers. As part of the deal, Tata Elxsi will build the application software for the company’s innovative hybrid set-top-box, Internet TV.
14 Sep 2018, 01:32:00 PM IST
European stock markets rise at open
Europe’s main stock markets climbed at the open on Friday, with London’s benchmark FTSE 100 index up 0.4 percent to 7,307.95 points. In the eurozone, Frankfurt’s DAX 30 grew 0.4 percent to 12,109.37 points and the Paris CAC 40 gained 0.5 percent to 5,353.58, compared with Thursday’s closing levels. AFP
14 Sep 2018, 01:02:00 PM IST
Needs to be vigilant to check rupee weakness, says PM economic panel member
India needs to be extremely vigilant to check weakness in the rupee and the task was to minimise volatility and avoid contagion to other macro policies, Rathin Roy, a member of the prime minister’s economic advisory panel said on Friday. “The present challenge can be effectively dealt with,” said Roy, in a blog, ahead of Prime Minister Narendra Modi’s meeting on Saturday to consider steps to address weak rupee and rising fuel prices.
14 Sep 2018, 12:45:00 PM IST
WPI inflation eases to 4.53% in August
WPI inflation eased to a four-month low of 4.53% in August on softening of prices of food articles, especially vegetables. The Wholesale Price Index-based (WPI) inflation stood at 5.09% in July and 3.24% in August 2017. Food articles registered deflation at 4.04% in August 2018, according to the government data released today. Deflation in vegetables was 20.18% in August. Deflationary trend in food articles offset the double-digit inflation in ‘fuel and power’ basket in August. Inflation in this category was 17.73 per cent as prices of domestic fuel increased during the month, in line with high global crude oil rates.
14 Sep 2018, 12:15:00 PM IST
Bandhan Bank shares rise over 4%
Bandhan Bank shares gained as much as 4.4% to Rs 639.70, their biggest intraday percent gain in over five weeks. The Kolkata-based private bank has backed out of the race to buy PNB Housing Finance Ltd, the Economic Times reported late on Wednesday, citing sources. Canadian Pension Plan Investment Board and KKR were among those who didn’t submit initial bids for PNB Housing Finance, the report said.Bandhan Bank and PNB Housing Finance did not immediately respond to Reuters’ request for comment.Housing finance is a low-margin business and PNB Housing Finance has one of the lowest NIMs in the sector, while Bandhan has among the highest, said AK Prabhakar, head of research at IDBI Capital. If Bandhan grows on its own organically that will be better than acquiring PNB housing finance, as the acquisition will dilute their margins, added Prabhakar. Reuters
14 Sep 2018, 11:48:00 AM IST
BSE IT index up nearly 40% so far this year
In the year so far, the BSE IT index has gained nearly 40%, outpacing gains in the benchmark Sensex index which has gained around 10%. Today, however, the Index was trading 0.38% down.
An economic boom in developed nations implies greater outsourcing business for India's IT companieshttps://t.co/ZWwsb2CtLf
Alkem to take maximum hit from combination drug ban, says Nomura
Brokerage firm Nomura said that Alkem Laboratories Ltd will take the maximum hit from Indian govt’s decision to ban 328 combination drugs, among the firms it covers. Nomura added that 2% to 3% of Alkem’s domestic pharma sales are likely to be impacted by ban, as per company. These 328 drugs have a market size of ~Rs 1,500 crore, representing about 1.3% of overall market, according to Nomura. Overall impact will be limited as most large companies have discontinued the brands or have made necessary changes and reformulated, noted Nomura.Impact on IPCA Laboratories Ltd and Lupin Ltd expected to be less than 2% of their domestic sales; impact to be less than 3% and 2%, respectively, on FY20 earnings estimates, said Nomura. Indian govt banned 328 combination drugs, saying there was no therapeutic justification for their constituents and that they may involve risk to human beings.Shares of Alkem Labs traded 1.43% lower at Rs 2,096. IPCA Labs rose 1.98% to Rs 784. Lupin gained 1.69% to Rs 972.50. As of last close, Alkem had declined 3.3%, Lupin rose 8.4% and IPCA climbed 29% this year. Reuters
14 Sep 2018, 11:10:00 AM IST
KNR Constructions shares gain 6% as unit gets sanction letter from banks
KNR Constructions Ltd shares rose as much as 6% to Rs 213 per share after it said that unit KNR Shankarampet Projects Pvt. Ltd has received sanction from bank to finance its hybrid annuity mode project.
14 Sep 2018, 10:35:00 AM IST
NBCC India shares rise over 5% on HSCC bid win
NBCC India Ltd shares jumped as much as 5.45% to Rs 70.50 per share after the company on Thursday said that the Department of Investment and Public Asset Management has selected NBCC as the buyer for 100% of HSCC (India) Ltd for Rs 285 crore.
14 Sep 2018, 10:07:00 AM IST
Indian large-cap stocks have been a resilient lot, but that could change
Indian markets are looking expensive. Data sourced from Credit Suisse shows India’s price-to-earnings ratio premium to the world and the emerging markets is now at 29% and 69%, respectively. That’s the highest in seven years.
The Nifty 50 index shed 1.9% in the last three trading days. Even then the Nifty 50 has risen 12% so far this fiscal yearhttps://t.co/EsICjtBfXH
Maruti Suzuki India Ltd rose 2% to Rs 8700 after the company said that it will boost productions of Baleno cars to cut down the waiting time for its customers. The automobile company has sold over 4.5 lakh units cumulatively since its launch.
14 Sep 2018, 09:30:00 AM IST
RCF shares surge 11%
Rashtriya Chemicals and Fertilizers Ltd surged 11% to Rs 76 after the government gave ex-post facto approval for the transfer of land from Rashtriya Chemicals and Fertilizers Limited (RCF) to Mumbai Metropolitan Regional Development Authority.
14 Sep 2018, 09:23:00 AM IST
Sun Pharma shares gain 3% on USFDA drug approval
Shares of Sun Pharmaceuticals Industries Ltd rose as much as 3.24% to Rs 670.95 after the company said that it has received USFDA approval for Xelpros. The drug is used to treat ocular hypertension.
14 Sep 2018, 09:16:00 AM IST
Rupee, bond prices gain as retail inflation eases below RBI target
The Indian rupee and 10-year government bond prices on Friday rose after retail inflation for August fell below the Reserve Bank of India’s (RBI) medium term target of 4% for the first time in 10 months. At 9.15am, the rupee was trading at 71.75 a dollar, up 0.65% from its Wednesday’s close of 72.19. The currency opened at 71.70 per dollar. The 10-year bond yield stood at 8.081%, from its previous close of 8.134%. Bond yields and prices move in opposite directions. Read more
Gold prices edged higher on Friday as softer-than-expected U.S. consumer prices data dimmed the case for a faster pace of policy tightening by the Federal Reserve. Spot gold was up 0.2% at $1,203.55 an ounce. US gold futures were mostly steady at $1,208.50 an ounce.Oil prices clawed back some of its losses from the previous session when prices fell the most in a month, although worries that emerging market crises and trade disputes could dent demand continued to drag. Brent crude was up 23 cents, or 0.3%, at $78.41 a barrel, after falling 2% on Thursday. The global benchmark the day before rose to its highest since May 22 at $80.13 a barrel. US light crude was up 27 cents, or 0.4 percent, at 68.86, after dropping 2.5% on Thursday.Metal: London copper edged lower, pulling back from a two-week high reached in the prior session, as investors exercised caution ahead of possible trade talks between the United States and China to resolve an escalating tariff war. Three-month copper on the London Metal Exchange was down 0.3% at $6,015 a tonne. Reuters
14 Sep 2018, 09:02:00 AM IST
Opening bell: Cues to look out for before trading today
■ Asian markets gained in the morning trade helped by optimism surrounding the US, China trade talks. Overnight, US stocks closed with gains. S&P 500 rose 0.5% to 2,904.■ The India Meteorological Department (IMD) has said the withdrawal of monsoons could begin only after 17 September although it has started to show signs of weakening with reduced rainfall over north-western states.■ Patanjali Ayurved Ltd announced plans to sell packaged cow milk and milk-based products expanding in the Rs 90,000 crore dairy market that has long been dominated by co-operatives, reports Mint. According a Business Standard report, Patanjali’s packet milk costs lower than rival brands.■ Voltas Ltd, which announced entry into consumer appliances market in joint venture with Turkey-based Arçelik, aims to generate Rs10,000 crore of revenue by 2025 by selling household appliances, reports Mint.■ Vedanta Ltd said it has discovered natural gas in a Krishna Godavari basin block in the Bay of Bengal, reports PTI.■ State-owned Engineers India Ltd said it will bid to acquire government’s stake in Projects and Development India Ltd, reports PTI.■ The spate of imports of scraps and finished aluminium products leading to a cause of concern for local aluminium producers, reports Business Standard. Total aluminium imports rose 19% last quarter, according to the report.■ Lastly, steel minister said he wanted the finance ministry to scrap the 2.5% duty on imports of coking coal, a key steelmaking raw material, to limit input costs, reports Reuters. R. Sree Ram/MintWith inputs from Reuters