Market HIGHLIGHTS: Sensex tanks 380 pts from day’s high, Nifty ends just above 11,300; Tata Steel top loser

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Updated: September 8, 2020 4:26:03 pm

Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity benchmarks Sensex and Nifty ended lower on Tuesday, led by sell-off in Tata Steel and Bharti Airtel

Share Market Today, Share Market LiveAxis Bank, ONGC, Sun Pharma, NTPC, State Bank of India were other losers.

Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 pared all the gains and slipped into the negative territory in the fag-end of the session on Tuesday. The 30-share Sensex ended 52 points or 0.14 per cent down at 38,365, while the broader Nifty 50 index settled just above the crucial 11,300 level. Four of the top eight BSE Sensex gainers were from the Information Technology space today. HCL Tech and Infosys were the top Sensex gainers, up 1.69 per cent and 1.60 per cent, followed by Reliance Industries (RIL), up 1.18 per cent. Tech Mahindra, TCS, HDFC Bank, Maruti Suzuki and Bajaj Auto were among gainers on the index. On the flip side, Tata Steel was the top Sensex laggard, down 4.13 per cent to end at Rs 405. Telecom major Bharti Airtel slipped 3.36 per cent and ended at Rs 497.90. Axis Bank, ONGC, Sun Pharma, NTPC, State Bank of India were other losers. Except for the Nifty IT index, all the sectoral indices settled in the negative territory today.

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    16:19 (IST)08 Sep 2020
    Share market bulls to climb higher; Morgan Stanley believes stocks will continue to surge

    The fall in stocks markets last week might as well just be a small blip in the larger bull run that equities across the globe are witnessing. Analysts at global brokerage and research firm, Goldman Sachs have tried to make a case for the bull market to sustain. With enough liquidity available across the world with central banks turning accommodative and equities available at attractive valuations, the bulls could still have a long way to go. Goldman Sachs chalks out 10 reasons why it believes that bulls still have a long way to go.

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    15:36 (IST)08 Sep 2020
    Sensex, Nifty pare all gains, end in red

    Sensex ends 52 points or 0.14 per cent down at 38,365, while the broader Nifty 50 index settled just above the crucial 11,300 level. The benchmark indices pared all the gains in the fag-end of the session.

    15:26 (IST)08 Sep 2020
    Nifty IT index hits new 52-week high; TCS, Infosys, HCL Tech along with 10 index stocks scale fresh highs

    Nifty IT index hit a fresh 52-week high of 18,671.75 on Tuesday with its all 10 index constituents HCL Tech, L&T Infotech, Naukri, Coforge, Infosys, Wipro, Tech Mahindra, TCS, Mphasis and MindTree touching their respective new 52-week highs. Market analysts believe that this buying interest in the information technology sector is on the back of Happiest Minds Technologies IPO and feel that this buying may continue till the IPO gets close.

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    15:24 (IST)08 Sep 2020
    Happiest Minds IPO subscribed over 6 times on day-2

    With interest flowing in from Non-Institutional Investors on the second day, the IPO of Happiest Minds Technologies was susbcribed 6.25 times. NII oversubscribed their portion by over 200% whiel retail investors' susbcription was over 29 times. 

    15:18 (IST)08 Sep 2020
    Sensex slips into red, minutes before closing

    Sensex was seen slipping into the red minutes before the closing bell after having scaled down from the day's high in the final few hours of the day's trading session, S&P BSE Sensex was down 20 points with Tata Steel and Bharti Airtel as the worst performers. 

    15:17 (IST)08 Sep 2020
    Impact of RBI restructuring framework

    "We believe that this is a prudent attempt by the expert committee in laying down the financial parameters for impacted sectors. Moreover, it would enable transparency in restructuring across lenders when focusing on the efficacy of the resolution plan. Our recent discussions with various bankers suggest that for mid-sized banks, expect 20–25% of the moratorium book to be restructured, while large banks expect restructuring in the low single digits. Overall, large banks have strengthened their provision coverage on existing NPLs and built higher COVID-19-related provisions. Thus, they are placed better v/s mid-sized peers. We maintain our preference for ICICIBC, HDFCB, and SBIN," said brokerage firm Motilal Oswal.

    15:14 (IST)08 Sep 2020
    Buy InterGlobe Aviation ~ Kotak Securities

    "Better spreads ahead; upgrade to BUY. We expect (1) pressures on cost and yield to recede for the airlines sector beyond a tough FY2021, (2) Indigo to reestablish its lead over peers in terms of spread and (3) the company to continue driving double-digit growth for air travel for long. We upgrade the stock to BUY (from SELL) with FV of Rs1,520 (from Rs900) as we bake in (1) modest growth over FY2020-23 over low FY2020 base, (2) Rs0.33 per ASK spread by FY2023E and (3) roll-forward," Kotak Secutiries wrote in a note. 

    15:07 (IST)08 Sep 2020
    Views on Gold

    Domestic prices remained extremely range-bound in a choppy session, but were trading with gains this Monday afternoon. Technically, MCX Gold is trading neutral where below 50600 will turn the Bearish note to continue upto 50400-50050 levels.51200 levels will halt further upside movement. Domestic Gold October futures on MCX are trading marginally down by Rs.165/10 grams at Rs.50900/10 grams, while Silver December futures on MCX are trading by Rs.100/kg at Rs.68171/kg: Sriram Iyer, Senior Research Analyst at Reliance Securities

    14:42 (IST)08 Sep 2020
    Views on Route Mobile IPO

    Being into the category of services known as software as a service (SaaS), is a win-win combination both for companies like Route Mobile as well it’s clients since they don’t have to invest in the maintenance of servers and connections apart from uploading different kinds of content or doing all of the administrative work involved in keeping a communications platform functional. Route Mobile earns more than 80% of revenues from international clients and although it involves hedging costs and associated risks, so far Route Mobile has managed well. The company has no listed peers in India. So, the company will have the first mover advantage in the segment. Overall, the company has a history of stable financials, strong return ratios and positive operating cashflows. Besides, being the only player to be listed in this space, it will garner interest. Hence, investors can Subscribe to this IPO: Ashika Institutional Equities

    14:23 (IST)08 Sep 2020
    Nirali Shah, Senior Research Analyst, Samco Securities on Happiest Minds Technologies IPO

    Happiest Minds Technologies is the latest company coming out with an IPO. While there has been steady growth in its revenues and profits in the last two years, there are a number of risks clouding it’s future growth. Firstly, the company carries a larger-than-industry-average level of debt on its books, indicated by a debt to equity ratio of 0.92. This includes high working capital liabilities and current liabilities to the tune of Rs 211 cr. It plans to reduce this liability to an extent with the IPO funds but even then there will be a significant chunk of current liabilities on its books. Happiest Minds’ operating cashflows to EBITDA has also declined from 2018 to now. To add to it, promoters have pledged 30% of their total shares to raise capital. All these negatives outweigh the fact that this IT company trades at a fair valuation of 23x P/E. Hence, investors should avoid this IPO since there are a number of red flags and the given uncertainty in the economy.

    14:00 (IST)08 Sep 2020
    Analyst view on Route Mobile IPO

    There is yet another IPO hitting D-Street in the technology space. Route Mobile has seen plausible growth in revenues and profits over the last 2 years however, there are some factors which might hurt the company’s long-term growth prospects. Firstly, its core business being communication services, it faces stiff competition from peers which devoids it of any significant competitive advantage or strong moat. Route Mobile has witnessed sharp growth in trade receivables which is growing faster than the revenues of the company. This could lead to working capital stress in the future. The company is also valued at the higher end of industry average at 25x P/E. All these factors lead us to believe that long term investors should avoid this IPO for the moment: Nirali Shah, Senior Research Analyst, Samco Securities

    13:58 (IST)08 Sep 2020
    Nifty IT index hits new 52-week high; HCL Tech, TCS, Infosys too touch new highs

    Nifty IT index hit a fresh 52-week high of 18,671.75 on Tuesday. All the 10 index constituents HCL Tech, L&T Infotech, Naukri, Coforge, Infosys, Wipro, Tech Mahindra, TCS, Mphasis and MindTree hit their respective new 52-week highs today.

    13:39 (IST)08 Sep 2020
    IT sector rallies on Dalal Street

    Four of the top six BSE Sensex gainers were from the Information Technology space. HCL Tech was leading with over 3% gains, followed by Infosys, Tech Mahindra, and TCS. Along with that Happiest Minds IPO was also luring in more investors on the second day. 

    13:26 (IST)08 Sep 2020
    A Sharper V is what economists at Morgan Stanley are expecting

    "The V-shaped recovery that we originally envisaged is playing out faster than we thought. By 2Q21, a global synchronous recovery should take hold, with all engines of the global economy registering strong growth. Risks to our view include a potential aggressive lockdown in the winter and uncertainty about fiscal policy," economists led by Chetan Ahya wrote. 

    13:17 (IST)08 Sep 2020
    Situation at the LAC in Eastern Ladakh still tense

    It was the troops of the People’s Liberation Army of China which once again attempted to close-in with one of the forward positions in India along the Line of Actual Control (LAC). Indian Army has categorically denied transgressing across the LAC, firing or using any aggressive means. This incident has happened soon after defence minister Rajnath Singh meeting his Chinese counterpart Wei Fenghe in Moscow, where both sides had decided to resolve the border issue through dialogue.

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    13:12 (IST)08 Sep 2020
    TCS Recognized with an Overall Positive Vendor Rating by Gartner lnc

    Tata Consultancy Services a leading global lT services, consulting and business solutions organization, has been recognized with an Overall Positive Rating in the recent Vendor Rating report by Gartner, based on a holistic evaluation covering the company's Strategy, Product/ Service, Pricing Structure, Technology/ Methodology, Support/ Account Management and Corporate Viability.

    13:07 (IST)08 Sep 2020
    IRCTC share price jumps 8% so far in September; Indian Railways to run additional special trains

    IRCTC shares jumped over 3 per cent to trade at Rs 1,459.95 apiece on BSE after the Indian Railway Catering and Tourism Corporation announced to run additional special trains with effect from Saturday, September 12, 2020. The stock hit a 52-week high of Rs 1,995 apiece in February this year since then the stock has corrected nearly 27 per cent. In March this year, Indian Railways cancelled all the passenger train services and passenger ticketing in an attempt to contain the fast-spreading Coronavirus pandemic.

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    13:00 (IST)08 Sep 2020
    CLSA still bullish on HDFC Bank; manageable risks, strong asset quality to help, check target price

    India’s largest private lender HDFC Bank will soon be undergoing a massive management change. Aditya Puri the Managing Director and CEO who took office in 1994 will step down in October, to be replaced by Sashishar Jagdishan. The change in guard, however, does not seem to have any adverse impact on the bank and its operations. Global Brokerage and research firm CLSA, after analysing HDFC Bank’s fundamentals with Sashishar Jagdishan has reiterated the ‘Buy’ rating aided by the strong franchise that the bank is. Share price of the lender was trading 0.52% higher at Rs 1,115 per share.

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    12:47 (IST)08 Sep 2020
    Brokerage view on Swaraj Engines

    Swaraj Engines is engaged in the business of manufacturing diesel engines and hi-tech engine components. Diesel Engines are specifically designed for tractor application for M&M. Going forward, we expect strong growth numbers in the tractor industry primarily on account of continued positive sentiment in rural areas, due to increase in Kharif sowing area, thereby indicating a bumper harvest, bountiful monsoon, good rural cash flows and upcoming festive season. Hence, it will benefit the players like Swaraj Engines. Swaraj Engines CMP:- Rs1,680; TP:-Rs1,931: Amarjeet Maurya, AVP - Mid Caps, Angel Broking Ltd

    12:42 (IST)08 Sep 2020
    RBI’s conflicting signals send bond market in frenzy; traders sense no further rate cut

    India’s sovereign bond market is on tenterhooks again. Just days after announcing measures to lower yields, the central bank has given signals that traders interpret as a lack of interest from authorities in pushing rates down further.

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    12:07 (IST)08 Sep 2020
    12 S&P BSE 500 constituents hit 52-week high

    With the equity markets surging higher, 12 BSE 500 stocks were seen trading at their 52-week high values. Among the marquee names were Adani Green Enrgy, Amber Enterprises, Pfizer, Infibeam, HCL Technologies, and TCS.

    12:03 (IST)08 Sep 2020
    ‘Women entrepreneurs are more creative, open-minded and that’s exactly what we need to boost economy’

    The other day, Fortune magazine was celebrating that a record 38th women CEO was joining the ranks of the Fortune 500. 38 out of 500 — that is an underwhelming 7.6 per cent and I was thinking to myself, there is something wrong with that picture!!! Women form 50 per cent of the world’s population and that is an abysmal picture by any standards!!

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    11:44 (IST)08 Sep 2020
    RBI approves expert committee's restructuring framework

    We believe this is a prudent attempt by the expert committee at laying down the financial parameters for impacted sectors. Moreover, it would enable transparency in restructuring across lenders, while focusing on the efficacy of the resolution plan. We continue to prefer ICICIBC, HDFCB, and SBIN: Motilal Oswal Financial Services

    11:38 (IST)08 Sep 2020
    Expert view on QIP by Amber Enterprises

    Amber Enterprises India is engaged in the business of Air Conditioners and Its Components. The company has launched QIP on 7 September 20 and floor price is Rs1,798.72 per share (currently trading at Rs1,885 -10:22 am on 8 Sep'20). In our view, we expect the company will raise Rs300-400cr money for future working and capex requirement which is 5-7% of current share capital. We believe that increasing demand for contract manufacturing in India due to the “Atma Nirbhar Bharat” initiative by the government. This is a positive move by the company to take advantage of the growing opportunity in India: Amarjeet Maurya- AVP - Mid Caps, Angel Broking Ltd

    11:23 (IST)08 Sep 2020
    RJio enjoys market leadership position in a 3-player industry

    In a deal that could well shape the organized retail sector in India, RIL, through its retail subsidiary, Reliance Retail Venture Limited (RRVL), announced the acquisition of Future Group’s Grocery and Apparel Retail formats on a slump-sale basis at Rs 247 billion recently We expect robust revenue/EBITDA CAGR of 27%/49% over FY20-22E. Jio Platforms has raised INR1,520.6b across 13 investors with RIL holding 66.48% equity stake on fully diluted basis. Of the total funds raised, INR229.8b would be retained in Jio Platforms while the rest would be used for optionally convertible preference share (OCPS). Hemang Jani, Head Equity Strategist, Broking & Distribution, Motilal Oswal Financial Services

    11:22 (IST)08 Sep 2020
    Happiest Minds IPO subscribed over 4 times

    Happiest Minds IPO is enjoying good run with the susbcription of over 4 times reached so far. Retail investors have susbcribed to the issue 20.89 times. Non Institutional Investors too have oversusbcribed their quota. 

    11:21 (IST)08 Sep 2020
    Expert view on Reliance Industries

    RJio enjoys a market leadership position in a 3-player industry. It could leverage its position as a price maker to drive ARPU. Furthermore, the company is in the process of transforming from a telecom player to a digital company with an ability to expand revenue stream to multiple categories. The higher multiple captures the digital revenue opportunity, expected gains from any potential tariff hikes, growing market share and possible rationalization of tax levies for the sector, which are not built into our estimates: Hemang Jani, Head Equity Strategist, Broking & Distribution, Motilal Oswal Financial Services

    11:18 (IST)08 Sep 2020
    Bharat Dynamics share price tumbles 13.5% as government begins stake sale through offer for sale

    Bharat Dynamics share price plunged 13.49 per cent to Rs 332.60 apiece on BSE a day after the defence company informed that government is planning to sell 15 per cent stake in Bharat Dynamics through an offer for sale (OFS) on 8-9 September. The floor price for the OFS has been fixed at Rs 330 per share, which is a 14 per cent discount to Monday’s close of Rs 384.50.

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    11:09 (IST)08 Sep 2020
    Vodafone-Idea’s rebranding exercise does nothing for investors; here’s what the telco needs to survive

    With Vodafone-Idea’s rebranding exercise, the struggling telecom operator looks poised to battle it out in India’s fiercely competitive telecom space. The launch of the unified brand name Vi (Read We) marks the completion of the integration of the two companies, however it still does not answer the pressing question -- will it manage to regain market share? Although the rebranding assures on-lookers but survival in a market where the company has lost close to 45 million subscribers in a year is key to draw investors. Experts say heavy capital expenditure is what the telco needs or a large equity infusion to fight the better placed Bharti Airtel and Reliance Jio. 

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    11:03 (IST)08 Sep 2020
    REPCO’s strong capital base, funding position are positives

    REPCO’s 1Q earnings were adversely impacted by a sharp fall in margins and elevated provisions. The sequential reduction in Gross Stage III was optical. Further, while the portfolio under moratorium remained sticky at ~35%, borrowers representing 8.7% of loans had not paid a single instalment since March, which was more confounding than promising, given that collection efficiency for the month was between 65-70%. However, REPCO’s strong capital base (CRAR at 26.1%) and comfortable funding position are (remain) positives and drive our ADD rating (target price of Rs 207, 0.7xFY22E ABV) along with relatively inexpensive valuations: HDFC Securities

    10:48 (IST)08 Sep 2020
    What Moody's downgrade means for PSU lenders

    “Moody's Investors Service on Friday downgraded the long-term local and foreign currency deposit ratings of Bank of Baroda, Bank of India, Canara Bank, and Union Bank of India to Ba1 from Baa3. The rating agency also downgraded Baseline Credit Assessments of all the four lenders to B1 from Ba3. Before the pandemic, PSU banks except for a few had asset quality issues and were reporting subdued ROE. Pandemic has further accentuated asset quality issues. We expect credit cost for FY21 to remain elevate considering low economic activity and higher slippages from the moratorium book. We believe Bank of Baroda and Canara bank stock price to consolidate till investors get better clarity on slippage from Morat book. We have a positive view on the State bank of Inia from PSU banks and currently, all PSU banks are trading at a historically low valuation," said Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd.

    10:41 (IST)08 Sep 2020
    BoB, Canara bank stock price to consolidate till investors get better clarity on slippage from Morat book

    Moody's Investors Service on Friday downgraded the long-term local and foreign currency deposit ratings of Bank of Baroda, Bank of India, Canara Bank, and Union Bank of India to Ba1 from Baa3. The rating agency also downgraded Baseline Credit Assessments of all the four lenders to B1 from Ba3. Before the pandemic, PSU banks except for a few had asset quality issues and were reporting subdued ROE. Pandemic has further accentuated asset quality issues. We expect credit cost for FY21 to remain elevate considering low economic activity and higher slippages from the moratorium book. We believe Bank of Baroda and Canara bank stock price to consolidate till investors get better clarity on slippage from Morat book. We have a positive view on the State bank of Inia from PSU banks and currently, all PSU banks are trading at a historically low valuation: Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

    10:17 (IST)08 Sep 2020
    Sensex, Nifty claw back into green, smallcaps outperform; key things from today’s trade

    Headline indices BSE Sensex and Nifty 50 were continuously gyrating between gains and losses in Tuesday’s opening session. At 9.55 AM, the 30-share Sensex was trading 85 points or 0.22 per cent higher at 38,502, while the broader Nifty 50 index was ruling 13 points or 0.12 per cent up at 11,379. Index heavyweights such as Reliance Industries (RIL), Infosys, TCS, ICICI Bank and HCL Technologies were among top index contributors. The smallcap index outperformed the BSE Sensex, rising 0.41 per cent to trade at 14,633.

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    10:07 (IST)08 Sep 2020
    RBI’s conflicting signals send bond market in frenzy; traders sense no further rate cut

    India’s sovereign bond market is on tenterhooks again. Just days after announcing measures to lower yields, the central bank has given signals that traders interpret as a lack of interest from authorities in pushing rates down further.

    Read full story

    09:52 (IST)08 Sep 2020
    Views on RBI accepts KV Kamath committee recommendation on loan restructuring

    Quick response by RBI on clearing air on restructuring norms is positive for the sector. The bank will get adequate time to implement the restructuring plan in the best possible way to support the borrowers. Further, the provision requirement for loan under this restructuring scheme look healthy at portfolio level. At the same time deteriorating COVID 19 spread and its impact on the economy will remain the key monitorable. We will also continue to tack the development in Supreme Court on relief to borrowers as any adverse instruction by the court may create additional problems for the banks. We continue to maintain positive stance on the sector and our pecking order among large-cap banks are SBI, followed by HDFC Bank, Indusind Bank and ICIC Bank: Ashika Institutional Desk

    09:47 (IST)08 Sep 2020
    Sensex, Nifty beaten by midcap, small-cap indices in August; these stocks double so far this year

    It was the midcap and small-cap indices that outperformed BSE Sensex and Nifty50 in the month of August, as global and well as domestic brokerages turned bullish on midcap and small-cap stocks. In the previous month, while the benchmark Nifty 50 managed to gain only 4.6%, the Nifty Smallcap 50 jumped 10% and the Nifty Midcap 50 managed a rise of 9.6%. Infact, since the unlocking of the country began, midcap and smallcap stocks have outperformed the benchmarks. Analysts say, cut in corporate tax and policy actions could bring the momentum back to the small and midcap stocks.

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    09:46 (IST)08 Sep 2020
    Rupee can shoot up with knee jerk reaction if LAC situation worsens

    As the domestic situation remains fragile, investors could remain cautious thereby halting inflows. However, the government is looking on a proposal to sell up to 25 % stake in India’s biggest insurer LIC in one or more tranches and also plans to sell up to 15% stake in the country’s largest missile maker Bharat Dynamics. The fundraising phenomenal by the Indian corporates and government has opened up more room for foreign inflows that shall subside any erratic move in the pair on the weaker side. As long as the pair trades below 74.50, the upside risk is limited. If the situation at LAC worsens, it can lead to panic selling and rupee can shoot up with the knee jerk reaction. Until then, the pair shall remain confined within 72.50-73.50 range: Amit Pabari, managing director, CR Forex Advisors

    09:45 (IST)08 Sep 2020
    Nifty above 11,300 signals a bullish sign

    The Nifty is trading above 11300 which continues to remain a bullish sign. However, if we disrespect the levels of 11200, we could slide further to break 11000. On the upside, an impulsive bull rally will only be seen post 11600. Until then we would be in a 300-400 point range between 11200 - 11600: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

    09:44 (IST)08 Sep 2020
    Indiabulls Housing Finance shares trade mildly higher

    Indiabulls Housing Finance shares trading with 0.31 per cent gains at Rs 195.60 apiece after the bulk deals data suggested that Franklin Mutual Series Funds-Franklin Mutual Beacon Fund sold 31 lakh shares of Indiabulls Housing Finance at Rs 194.04 per share on Monday.

    Check prices: Indiabulls Housing Finance

    09:40 (IST)08 Sep 2020
    Vodafone Idea shares fall nearly 5% in early trade

    Vodafone Idea share price slipped nearly 5 per cent to Rs 11.64 apiece on BSE, a day after the company informed that it will seek shareholders’ approval to raise borrowing limit to Rs 1 lakh crore, at the annual general meeting (AGM) scheduled to be held on September 30.

    Check prices: Vodafone Idea

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