2:29 pm Teaming up: Chinese President Xi Jinping told French President Emmanuel Macron that he hoped France could play a ‘constructive role’ in restarting talks on North Korea, reports Reuters.
“The Korean peninsula nuclear issue in the end can only be resolved through peaceful means, including through dialogue and consultations,” Xi said in a telephone call with Macron. Macron said France was working to maintain peace and stability on the peninsula and valued China’s role in resolving the issue.
2:10 pm HDFC Bank gains: Shares of HDFC Bank gained around a percent intraday on Friday as investors cheered an increase in target price.
CLSA, in its report, reiterated its buy stance on the stock, with an increase in target price of Rs 2,150.
The global research firm said that the bank is leveraging its strength on CASA/capital/asset quality/size to gain market share. It also sees an earnings CAGR of 20 percent in FY17-20.
The firm also highlighted the fact that Aditya Puri is set to retire on October 20 and that smooth transition is key for the bank. Further, two key challenges could be to maintain the credit quality and the transition mentioned above.
1:53 pm Buzzing Stock: Mahindra and Mahindra share price fell nearly 3 percent intraday Friday ahead of GST Council meet with respect to cess hike on SUVs and luxury cars.
The GST Council, chaired by Union Finance Minister Arun Jaitley and his state counterparts, will decide the quantum of cess hike in each variety of car in its meeting on September 9.
The government has already notified hike in GST cess on a range of cars from mid-size to luxury variants to a maximum of 25 percent, from the earlier 15 percent.
The company said the proposed hike in GST cess on SUVs and bigger cars should not be implemented during the festive season as it would have an adverse impact on the auto industry.
“My view is that right now we have implemented GST, industry is stabilising, we have grown in past couple of months, festive season is around the corner, we should not touch the rates for time being,” M&M Managing Director Pawan Goenka told reporters on the sidelines of SIAM annual convention on Thursday.
1:26 pm IPO: ICICI Lombard General Insurance Company’s Rs 5,700-crore IPO will open on September 15.
Speaking on the same, Chanda Kochhar, MD and CEO, ICICI Bank, said the non-life insurance business is growing at 17.4 percent CAGR with respect to gross direct premium. Allaying growth fears, she said the non-life insurance penetration in India is less than half of other Asian nations. “The Indian non-life insurance space is an Rs 1.28 lakh crore market at present. “
She sees emergence of new risks helping demand for non-life insurance to grow.
1:15 pm Market Check: Equity benchmarks turned lower in afternoon, tracking correction in European peers. Infosys and ICICI Bank pulled the market lower.
The 30-share BSE Sensex was down 28.78 points at 31,633.96 and the 50-share NSE Nifty fell 10.35 points to 9,919.55.
The market breadth also turned in favour of declines. About 1,383 shares declined against 1,024 advancing shares on the BSE.
European markets were lower, as investors tracked a massive storm nearing the US while the dollar skidded against the euro after comments from European Central Bank (ECB) President Mario Draghi.
12:56 pm Habib Bank in focus: The New York State Department of Financial Services said Pakistan’s Habib Bank had agreed to pay USD 225 million to settle an enforcement action brought against it for infringing laws designed to combat illicit money transfers.
The DFS said in a legal filing last month it was seeking to fine the bank, Pakistan’s biggest lender, up to USD 630 million for “grave” compliance failures over anti-money laundering and sanctions rules at its only US branch.
The regulator said the bank, known as HBL, agreed to pay just over a third of that sum as part of a broader settlement in which it will shutter its New York branch, subject to conditions.
These include submitting to a DFS investigation of transactions processed by the branch from October 2013 to the end of September 2014, and from April 2015 through the end of July 2017.
12:52 pm FII investment limit: Shares of CCL Products India rose 13.5 percent intraday on withdrawal of FII/FPI investment limit by RBI.
“Reserve Bank of India (RBI) has approved to increase the FII/FPI investment limit under portfolio investment scheme from 24 percent to 40 percent, of the paid up capital of the company,” company said.
Recently, the Development Commissioner of Visakhapatnam Special Economic Zone had given approval to the company for setting up of Freeze Dried Instant Coffee manufacturing unit in Andhra Pradesh.
12:42 pm PSU banks under pressure:
12:35 pm Europe trade: European markets opened slightly lower, as investors tracked a massive storm nearing the US while the dollar skidded against the euro after comments from European Central Bank (ECB) President Mario Draghi.
The pan-European Stoxx 600 edged down by around 0.29 percent shortly after the opening bell, with almost all sectors and major bourses in negative territory.
Wall Street ended little changed in the previous session, as investors continued to follow the movements of Hurricane Irma. The category 5 storm is projected to hit Florida over the weekend.
12:28 pm Market Check: Equity benchmarks traded mildly higher in afternoon as investors looked for fresh triggers, but Nifty Pharma and PSU Bank indices underperformed, falling nearly a percent.
The 30-share BSE Sensex was up 46.01 points at 31,708.75 and the 50-share NSE Nifty gained 16.20 points at 9,946.10.
The broader markets also erased gains as the market breadth was balanced. About 1,204 shares advanced against 1,144 declining shares on the BSE.
12:13 pm IPO: Online matchmaking services provider Matrimony.com will open its initial public offer on Monday, with a price band of Rs 983–985 per share.
The public issue comprises of fresh issue up to Rs 130 crore and an offer for sale of up to 37,67,254 equity shares by promoter and promoter group.
The offer for sale consists of up to 14,61,006 shares by Bessemer India Capital Holdings II, 1,55,760 shares by Mayfield XII (Mauritius), 16,83,207 shares by CMDB II, 3,84,447 shares by Murugavel Janakiraman and 82,834 equity shares by Indrani Janakiraman.
Net proceeds from the fresh issue will be utilised towards advertising and business promotion activities; purchase of land for construction of office premises in Chennai; repayment of overdraft facilities; and general corporate purposes.
The business of Matrimony.com currently comprises two segments – matchmaking services & marriage services and related sale of products.
12:07 pm L&T in action: Larsen & Toubro share price rallied nearly 5 percent intraday Friday after global brokerage house Citi raised target price of the stock to Rs 1,452 apiece from Rs 1,341 earlier.
While maintaining a buy rating on the stock, Citi said the engineering and construction major is its top industrial pick with huge upside potential.
Defence prospects may fructify in 12-15 months, according to the research house.
11:59 am Rupee extends gains: The rupee strengthened by 22 paise to 63.83 against dollar at the interbank foreign exchange on continuous selling of the US currency by exporters and banks.
A fall in dollar against major world currencies globally boosted the rupee, currency traders said.
The dollar fell to its weakest level since 2015 as experts warned that Hurricane Irma could have devastating impact on the US. The powerful storm has left a trail of death and destruction in the Caribbean and is headed towards the US.
The European Central Bank also raised its economic growth forecast for this year, which boosted the euro that traded 2-1/2-year high against the US dollar.
11:45 am Euro at 2-1/2-year high: The euro reached a two-and-a-half-year high versus the dollar as a policy meeting by the European Central Bank gave bulls cause for short-term optimism and did little to support the beleaguered US currency. The euro was up 0.5 percent at USD 1.2077 after touching USD 1.2092, its highest since January 2015. It has gained 1.8 percent on the week.
11:26 am Jaypee Infra insolvency: An all-India homebuyers group, in a letter to the Prime Minister Narendra Modi, has sought an amendment to the Insolvency & Bankruptcy Code 2016 to ensure that homebuyers’ interests are protected during insolvency proceedings, and has also brought to his notice that Real Estate (Regulation and Development) Act 2016 (RERA) has not offered much relief to buyers as its provisions have been diluted by most states.
It has, therefore, recommended that the real estate regulator should have the powers to attach all the assets of the promoters – both personal and other companies – to fund the completion of unfinished projects.
This appeal follows the uncertainty faced by almost 40,000 homebuyers over their investments after the National Company Law Tribunal (NCLT) admitting IDBI Bank’s plea for initiating insolvency proceedings against Jaypee Infratech for defaulting on a Rs 526-crore loan earlier last month.
11:18 am Buzzing: Shares of Vista Pharmaceuticals has locked at 5 percent upper circuit on the back of EIR received from USFDA.
There were pending buy orders of 1,039,216 shares, with no sellers available.
The company’s formulation facility situated at Telangana has received Establishment Inspection Report (EIR) from USFDA, thereby confirming the closure of the inspection.
The said facility was inspected by USFDA during September 2016.
11:09 am Dr Reddy’s in focus: Dr Reddy’s Labs informed exchanges that the Regulatory Authority of Germany (Regierung von Oberbayern), concluded an audit of formulations manufacturing facility in Duvvada, Vishakapatnam, with zero critical and six major observations.
Products manufactured at the facility are not currently exported to the European Union.
The company will be submitting a corrective and preventive action plan (CAPA) to the authorities.
The auditor has cautioned that the facility will receive EU-GMP certification from the regulator up to November 2018 only when the regulator approves the CAPA.
The facility’s compliance with the CAPA and other applicable regulations will be reviewed again by the regulator by November 2018 for continuation of EU-GMP certification.
11:03 am Banks recapitalisation: Reserve Bank of India (RBI) Deputy Governor Viral Acharya has called for a quick and massive recapitalisation of public sector undertaking (PSU) banks, arguing that undercapitalised banks are holding back economic growth.
11:00 am Market Check: Benchmark indices continued to consolidate as investors looked for fresh triggers.
The 30-share BSE Sensex was up 13.25 points at 31,675.99 and the 50-share NSE Nifty rose 7.95 points to 9,937.85.
Larsen & Toubro suddenly surged 4 percent in morning.
10:53 am Pharma under pressure: Healthcare stocks were under selling pressure today as the Nifty Pharma index was down 1.5 percent.
Dr Reddy’s Labs was biggest loser amongst them, down 5 percent followed by Glenmark Pharma, Sun Pharma, Lupin and Cadila Healthcare.
10:50 am SEBI meet: The Securities and Exchange Board of India (SEBI) will review the securities lending and borrowing framework at the Secondary Market Advisory Committee (SMAC) meeting on Monday.
Other items on the agenda for discussion include introduction of weekly futures, review of the block deal window, and review of the call auction framework.
The securities lending and borrowing (SLB) mechanism — which allows investors with a bearish view to borrow stocks and short sell them — was first introduced in late 2007. However, it has not picked up in a big way, despite the regulator repeatedly tweaking the rules.
10:40 am IPO: Insurance Regulatory and Development Authority has granted final approval to the IPO of SBI Life Insurance, the subsidiary of State Bank of India, reports CNBC-TV18 quoting unnamed sources.
SBI Life is a life insurance joint venture between SBI (with 70.1 percent stake), BNP Paribas Cardiff (26 percent) and KKR & Tamasek (1.95 percent).
SBI intends to dilute 8 percent & BNP Paribas Cardiff 4 percent through IPO.
10:30 am 52-week highs: Brushing off concerns of geopolitical tensions, fall in GDP growth, rising oil prices as well as muted earnings from India Inc. for the quarter ended June, midcap and smallcap stocks surged to fresh record highs.
The S&P BSE Sensex and Nifty50 are still trading 2-3 percent short of their respective record highs but the S&P BSE Midcap index rose to a fresh all-time high of 15,906.14, and the S&P BSE Smallcap index hit 16,446 for the first time ever.
Tracking the momentum, as much as 97 stocks hit a fresh 52-week high on the BSE which include names like Andhra Cement, Andhra Petrochemicals, Bajaj Finance, Bharti Agri, Bombay Dyeing, Cian Agro, Colgate Palmolive India, Future Enterprises, Goa Carbon etc. among others.
Out of 97 stocks as much as 35 stocks rose to fresh all-time high which includes names like Bajaj Finserv, Eicher Motors, Future Consumer, Indiabulls Housing Finance, Teamlease, Tata Metaliks, Manappuram Finance etc. among others.
10:20 am Land sale: Shares price of Bombay Dyeing and Manufacturing Company has locked at 5 percent upper circuit on Friday as the company has sold land parcel situated at Pune, Maharashtra.
There were pending buy orders of 102,439 shares, with no sellers available.
The company has sold 48.457 acres of freehold land situated at village Dhoksanghvi, Taluka Shirur, District Pune, Maharashtra for Rs 13.57 crore.
In the month of January 2017, the company had entered into an agreement for sale of MIDC land & building and some specific utility machineries of Ranjangaon unit situated at Ranjangaon, Pune, Maharashtra, at an aggregate value of Rs 174.45 crore.
10:10 am Buzzing: Biocon shares surged more than 5 percent intraday after its Malaysian insulin facility received certificate of GMP compliance from European inspection authority.
“The certificate of GMP compliance reflects that the agency considered the site to be in compliance with the principles and guidelines of Good Manufacturing Practices for active substances, sterile drug products and quality control testing operations,” the biopharmaceutical firm said in its filing.
The facility was inspected by Irish drug regulator HPRA as the representative of European Medicines Agency in April 2017.
Biocon Sdn. Bhd (Biocon Malaysia) facility set up with an investment of about USD 275 million is the first overseas biopharma manufacturing and research unit of the company and employs over 600 professionals.
10:00 am Market Check: Equity benchmarks were off opening highs due to lack of global as well as domestic cues.
The 30-share BSE Sensex was up 61.60 points at 31,724.34 and the 50-share NSE Nifty rose 24.05 points to 9,953.95.
The broader markets continued northward journey as the BSE Midcap and Smallcap indices gained around 0.5 percent on positive breadth.
About two shares advanced for every share falling on the BSE.
Metals stocks extended rally as the Nifty Metal was up 1.4 percent. Hindalco Industries, Vedanta and Tata Steel gained 1.6 percent each.
9:55 am Earnings: Shares of Global Vectra Helicorp and Plastiblends India declined 3-10 percent intraday on the back of poor Q1 numbers.
Plastiblends India has reported 41 percent decline in its Q1FY18 at Rs 5.2 crore versus Rs 8.8 crore, in the same quarter last year.
Revenue slipped 2 percent at Rs 144 crore versus Rs 147 crore.
Its operating profit (EBITDA) was down 16 percent at Rs 11.4 crore and margin was down at 8.65 percent
Global Vectra Helicorp has registered 57 percent de-growth in its June quarter (Q1FY18) at Rs 90 lakh due to higher tax rate against profit of Rs 2.2 crore in Q1FY17.
Meanwhile, revenue was up 5 percent at Rs 99.8 crore and EBITDA was up 12 percent at Rs 17.2 crore.
9:44 am Inflow from EPFO: Emerging as a significant source of investments into capital markets, Employees Provident Fund Organisation (EPFO) is likely to pump in Rs 25,000-30,000 crore in equities in 2017-18 with Rs 5,700 crore already invested this year so far, says a report.
According to global brokerage Morgan Stanley, besides EPFO, the National Pension Scheme (NPS) is also among the sources for driving the domestic flow surge, which has been positive for the past 17 months.
“NPS’ pension assets stood at USD 30 billion at the end of July. We estimate their equity assets to be at USD 3.5 billion,” the report said.
The report noted that EPFO, which has raised its equity allocation to 15 percent in the current fiscal from 10 percent in 2016-17, is “likely to invest Rs 250-300 billion in equities in 2017-18 of which Rs 57 billion has been invested this year thus far”.
In August, equity flows were positive for the 17th straight month.
Year-to-date, domestic mutual funds have received equity inflows of USD 18.6 billion (tracking at USD 2.3 billion per month).
“By the end of the month, equity mutual fund assets under management (AUM) stood at USD 111 billion, and as a percentage of market cap rose to 5.3 percent, its highest level since July 2000,” Morgan Stanley said.
“Similarly, equity ETF assets rose to new highs of USD 8.4 billion. Year-to-date, ETF inflows stood at USD 2.6 billion (Rs 169 billion),” it added.
9:35 am Buzzing: Shares of Punj Lloyd added as much as 8.3 percent in early trade as it has received a letter of award of Rs 870 crore.
The company has been issued the letter of award (LOA) in respect of construction and commissioning of balance/left out canal work including cross drainage structures & design for Gosikhurd National Project in Bhandara, Nagpur and Chandrapur districts of Maharashtra for VIDC, Phase – I / Pkg – I by NBCC India.
On Thursday, the share closed with a gain of more than 19 percent after its joint venture bagged Rs 1177-crore project from the National Highways Authority of India in Myanmar.
9:30 am Rupee strong: The Indian rupee appreciated sharply in morning trade on dollar weakness.
It was trading at 63.87 against the US dollar, up 17 paise from Thursday’s closing of 64.05.
Bhaskar Panda of HDFC Bank said the dollar weakness continued due to various risks..
9:25 am IPO: ICICI Lombard General Insurance Company set Rs 651-661 as the price band for its initial public offering (IPO), which will make it a Rs 5,700-crore issue.
“The price band has been set at Rs 651-661. At the upper end of the band, it will raise Rs 5,700 crore,” a source said late in the evening.
The issue, the first by any general insurance company, hits the market on September 15. The roadshows are kicking off tomorrow in the financial capital.
Sources said the company promoters will dilute their holding by 19 per cent as part of the issue.
At present, its shareholders include largest private sector lender ICICI Bank and the Canadian Fairfax Financial Holdings.
Over 8.6 crore equity shares will be sold as part of the IPO, which will include ICICI Bank selling over 3 crore shares and the rest from Fairfax.
9:15 am Market Check: Equity benchmarks opened last day of the week on a positive note amid consolidation, with the Nifty reclaiming 9,950 level.
The 30-share BSE Sensex was up 89.87 points at 31,752.61 and the 50-share NSE Nifty gained 23.75 points at 9,953.65.
Nifty Midcap hit record high. About 784 shares advanced against 247 declining shares on the BSE.
Future Market Networks, Future Enterprises and Future Consumer surged up to 10 percent.
Apex Frozen Foods gained another 3.5 percent, rising since listing on Monday.