MarketExpress: Market in turmoil; PM Modi’s man wants RBI to rate cuts

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Updated: September 26, 2017 6:27:39 PM

Sensex and Nifty closed in red on Tuesday after trading range bound since today morning. BSE Sensex ended down 27 points at 31,599.76 points after shuttling between 31,693-31,455 points. The rupee also extended fall, hitting a fresh 6-month low today due to outflows from domestic capital markets and the US Fed's intention to hike the rates in December.

A man looking at the ticker of stock quotes at Bombay Stock Exchange building. (Image: Reuters)

Sensex and Nifty opened marginally higher on Tuesday, snapping the two-day slide since Friday last week, but soon after, fell into the negative territory on continuing worries from the North Korean threat, and FIIs pulling out. BSE Sensex fell to below 31,500 points, and eventually settled below 31,600 points, while NSE Nifty recovered to 9,871 points. A technical analyst from Rare Enterprises today said that the Nifty has a near-term support at 9,700 points, but that if it falls below that, then he would be worried. Meanwhile, rupee also extended fall, hitting a fresh 6-month low today due to outflows from domestic capital markets and the effect of the US Fed’s intention to hike the rates in December. Some blue-chip stocks were trading higher. Notably, state-run ONGC surged over 4% after Prime Minister Narendra Modi yesterday invited the biggest oil and gas producer in the country to take up a challenge of developing an energy efficient electric cooking stove, under his Saubhagya scheme to provide electricity to every household by 2018. Here are the live updates:

6:10 pm: Rupee closes at 65.45; weakest in 6 months: The Indian rupee closed at a fresh 6-month low Rs 65.45, versus yesterday’s closing of Rs 65.12, as forex market participants feared fund outflows from the domestic capital markets.

6:00 pm: Prataap Snacks Rs 482 crore IPO oversubscribed 46 times at close: Prataap Snacks initial public offer, which opened on September 22, was over-subscribed 46 times on the last day of the three-day bidding process on Tuesday, despite the sky-high valuations, with the price/earning multiple of 202.

5:25 pm: Economic Advisory Council member Surjit Bhalla has a suggestion, but not for Narendra Modi: Surjit Bhalla, the noted economist who was appointed as a member of Prime Minister Narendra Modi’s newly-formed Economic Advisory Council, has a single-point suggestion to revive the economic growth.

5:15 pm: IPO dream-run of 2017: Rs 38,000 crore raised so far; bubble to burst soon? Overvalued IPOs getting grossly oversubscribed has caused a fear of a bubble in the IPO markets. In the nine months so far in 2017, a staggering Rs 30,000 crore have been raised in the primary markets.

4:55 pm: ICICI Lombard shares to list on exchanges tomorrow after Rs 5,700 crore IPO: ICICI Lombard General Insurance shares will debut on exchanges tomorrow after the company winded up its Rs 5,700 crore public offer last week. The initial share sale offer of ICICI Lombard was subscribed three times. For the ICICI Bank group, this was the second public offer this fiscal.

3:50 pm: Sensex settles at 31,600 in a range bound trade; ONGC tops, HUL bleedsSensex and Nifty closed in red on Tuesday after trading range bound since today morning. BSE Sensex ended down 27 points at 31,599.76 points after shuttling between 31,693 – 31,455 points.

3:30 pm: Reliance Naval looking to bid for six submarines contracts worth Rs 40,000 crore: Anil Ambani: Billionaire Anil-Ambani on Tuesday said that Reliance group’s company Reliance Naval is looking to bid for six submarines contracts worth Rs 40,000 crore.

3:20 pm: Godrej Agrovet Rs 1,160 crore IPO price band set at Rs 450-460: Godrej Industries agri-business company Godrej Agrovet has set a price range of Rs 450-460 per equity share for its public offer. We take a look at five key things about Rs 1,160 share sale.

3:00 pm: Nomura slashes target price on Coal India by more than 18%Nomura has cut the target price of Coal India by more than 18% to a target price of Rs 260 as against the previous target of Rs 320, as the Japanese financial services major sees the pricing in non-coking coal prices as a key downside risk.

2:42 pm: Sensex recovers morning losses; swings back to green, but just about: Sensex and Nifty pared losses in the late afternoon session after falling in the early morning trade following the escalated worries over North Korea. In the late afternoon, both the benchmark equity indices were flat.

1:40 pm: This investment expert will be concerned if Nifty breaches 9700 support. Where will it land? As the pessimism rises amid the market participants over the movement of equity markets in near time, Atul Suri, Chief Investment Officer at Marathon Trends PMS, said the matter will be of concern if Nifty breaches 9,000-point level.

1:30 pm: Goldman Sachs effect: D-Mart shares, which more than tripled since IPO, surge 18% today: Shares of Avenue Supermarts which runs the D-Mart retail store surged by more than 18% after Goldman Sachs initiated coverage on the stock. The global financial services behemoth has a buy rating on the stock with a target of Rs 1,586, implying an upside of more than 50% from the current price.

1:15 pm: Why PM Modi needs Economic Advisory Council now after three years: Narendra Modi has finally formed an Economic Advisory Council after three years. The question now arises why exactly PM Narendra Modi felt the need to form the council after three years when his government took even the most radical economic decisions such as demonetisation and the GST without one?

12:30 pm: Rupee plummets to a fresh 6-month low: 5 reasons why: The Indian rupee dropped to a fresh 6-month low on Tuesday over pessimism amid the forex market as the fears of fund outflows from the domestic capital markets weighed. We take a look at five reasons why rupee depreciated to a fresh six-month low.

11:00 am: Rakesh Jhunjhunwala owns more than 8% in this company; Deutsche Bank says buy: Rakesh Jhunjhunwala has more than 8.3% stake in Titan Ltd, as at the end of June 2017. Deutshe Bank has a buy call on the stock.

10:41 am: Will go to people’s doorsteps to provide them with electricity connection: Power Secretary: Power Secretary Ajay Kumar Bhalla on Tuesday said that the government will be allocating Rs 4000 crore in the current fiscal and is expecting to add another 6000-7000 MW into the system.

10:00 am: Implementation of Saubhagya a challenge; defensive on utilities: CLSAEven as the Narendra Modi led government launched the Saubhagya scheme on Monday to add more ‘power’ to Indian infrastructure and economy, global research and brokerage firm CLSA remains defensive on the utilities sector, as it believes the implementation of the scheme remains a challenge.

9:40 am: Sensex manages to fall beyond 31,567 despite North Korean worries; Modi’s address uplifts ONGCSensex and Nifty opened marginally higher on Tuesday but within minutes of trading both the key indices fell into negative territory following the rising tensions on the Korean Peninsula.

9:00 am: Stocks of DLF, Yes Bank, BHEL, ONGC, Jaiprakash Associates will be in focus todaySensex and Nifty are likely to open lower as most of the Asian shares slumped in the early trade on Tuesday following the rising tensions on the Korean Peninsula.

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