Market Live: Sensex, Nifty trade marginally higher; midcaps back in the green

Moneycontrol News

11:41 am GST impact: The estimated Rs 5,500 crore capital good leasing sector growing at 15-20 per cent may get tapered due to high Goods and Services Tax (GST) along with few other issues.

“The GST rate of 28 per cent is high for the leasing industry when compared to the earlier five to 15 per cent tax burden. Higher GST rates lead to requirement of higher working capital at any point of time. This results in increasing the cost of leasing an equipment,” Finance Industry Development Council director general Mahesh Thakkar told PTI.

“The government should actively consider not bracketing the capital goods in the same GST bracket as luxury goods and sin goods. A lower GST rate will help increasing share of leasing in gross capital formation,” he said.

(From PTI)

11:29 am Management Speak: The movie business has been weathering storms in recent months in the form of demonetisation and the Goods and Services Tax (GST), but leading cinema-exhibition company PVR has its eyes firmly set on attracting more audiences.

The company recently launched 10 more screens in Pune as part of its expansion plans, taking its screen count in Maharashtra to 160 screens across 38 properties. After Pune, cities such as Mysore, Hyderabad, Chennai and Ghaziabad will see the launch of around two to three screens each in the next few months.

In all, the company currently has nearly 600 screens in India and adds about 70-75 screens every year, Chief Executive Officer Gautam Dutta told Moneycontrol. The capital expenditure for each new screen is around Rs 2.5 crore on average.

Cinema’s classification in the highest GST tax slab of 28 percent, however, is being considered by industry experts to be a stumbling block. Ajay Bijli, PVR’s Chairman and Managing Director, has previously said that had it not been for the high GST rate, the company would have been scaling up opportunities for the domestic box office.

Dutta said that while no negative effects of GST have been felt so far, he expects the government to take the entertainment business seriously.

11:07 am Market Check: Benchmark indices were trading off the day’s low points, with the Nifty hovering 9800-mark.

At 11:01 hrs, the Sensex was up 45.85 points at 31494.88, while the Nifty traded higher by 10.85 points at 9805.00. The market breadth continued to be narrow as 1,341 shares advanced against a decline of 753 shares, while 88 shares were unchanged.

Midcaps are back in the green, while pharma, metals, IT and FMCG too gained. Banks were a laggard.

10:55 am Buzzing Stock: Jubilant Foodworks, the operator of Domino’s Pizza and Dunkin’ Donuts, gained around 6 percent intraday on Wednesday as investors cheered a target price hike by CLSA.

The global research firm increased the target price on the stock from Rs 1,600 to Rs 1,900, implying an upside of over 18 percent. Further, CLSA also raised the target PE multiple from 55 times to 60 times as well.

Affirming its positive stance is also the increase in same store sales growth (SSSG) and FY19-20 earnings per share (EPS) forecasts by 6-12 percent as well.

Here’s a look at the stock’s three-month chart.


10:45 am Management Speak: Apollo Hospitals Enterprises’ Q1 revenues came in line with street estimates while overall occupancy improved.

In an interview to CNBC-TV18, Suneeta Reddy, MD of Apollo Hospitals Enterprises discussed the company’s Q1 performance.

June quarter EBITDA margins are low because of losses incurred at Navi Mumbai unit, she said.

She further said that EBITDA margin also impacted due to regulation in stent pricing.

10:25 am Mutual Fund Radar: The total assets of the 10 largest India-focussed offshore funds and ETFs swelled during the quarter ended June 2017 compared with the previous quarter.

It ended the June quarter at USD 27.3 billion compared with USD 25.4 billion in the previous quarter and USD 20.5 billion as of June 30, 2016, Morningstar said in a report.

Positive environment in the domestic markets kept sentiments in the Indian stock markets upbeat, leading almost all the major domestic stock market indexes to surge during the quarter, said the report.

The S&P BSE Sensex Index moved up by 4.4 percent, although it was lower than the 11.2% appreciation it witnessed in the previous quarter (ended March 2017).

10:10 am Market Check: Consolidation continued on equity benchmarks, with Sensex trading flat, while the Nifty had a negative bias.

The drag was led by a fall in banks—Nifty Bank and PSU bank index were trading in the red—while pharmaceuticals and FMCG stocks were in the green.

At 10:03 hrs, the Sensex was up 4.74 points at 31453.77, while the Nifty was down 2.25 points at 9791.90. The market breadth was narrow as 1111 shares advanced against a decline of 714 shares, while 68 shares were unchanged.

Sun Pharma, HUL, ITC and Tata Power gained the most, while L&T, Coal India and Bank of Baroda were the top losers.

Also Read: These 10 low beta & high ROE stocks rose over 1000% in last 5 yrs; do you own them?

9:55 am Biocon declines: Shares of Biocon took a beating on Wednesday morning as investors turned cautious of the stock following a report from a research firm. It fell over 5 percent intraday.

HSBC in its report hinted that the company may have withdrawn one application for Trastuzumab, a breast cancer similar. The firm quoted the European Medical Agency (EMA) as its source for the information.

Further, it added, that the company could have withdrawn its filing given the recent cGMP (good manufacturing practices) observations that were issued by the regulator.

9:45 am Buzzing Stock: Shares of JK Tyre and Industries declined nearly 8 percent intraday on Wednesday as the company reported net loss in the quarter ended June 2017 (Q1FY18).

The company registered consolidated loss at Rs 108 crore in the quarter ended June 2017 against profit of Rs 100 crore, in the same quarter last year.

Revenue of the company was down at Rs 1,943 crore versus Rs 1,958 crore.

9:35 am Update: Benchmark indices were off the day’s high points, with the Nifty falling below 9800-mark.

The Sensex was down 23.80 points at 31425.23, while the Nifty fell 7.35 points at 9786.80. The market breadth was narrowing as 1,028 shares advanced against a decline of 521 shares, while 57 shares were unchanged.

L&T, Coal India and Bank of Baroda lost the most on both indices, while HUL, HDFC, Indiabulls Housing and Tata Power gained the most.

9:15 am Market Opens: Equity benchmarks continued with its positive momentum from the previous session and opened on a good note, with the Nifty reclaiming 9800-mark.

At 9:16 am, the Sensex was up 77.14 points at 31526.17, while the Nifty rose 23.05 points at 9817.20. The market breadth was positive as 626 shares advanced against a decline of 186 shares, while 27 shares were unchanged.

Midcaps were back in favour as they outperformed the benchmarks, while other gainers included FMCG, auto stocks and metals.

Adani Ports, Tata Motors, Tata Power and BPCL were the top gainers, while Larsen & Toubro, Cipla and Asian Paints lost the most on both indices.

The Indian rupee slipped in the early trade on Wednesday. It has opened lower by 16 paise at 64.28 per dollar versus 64.12 Monday.

Pramit Brahmbhatt of Veracity said, “Encouraging US economic data and FII outflows will help the dollar appreciate. We expect the USD-INR to trade in a range of 64-64.50 for the day.”

The US dollar strengthened after economic data, including July retail sales, beat expectations and cast the economy in a relatively favourable light.

Among global markets, Asian shares were mostly higher in early trade as investors digested earnings releases from regional corporates and a resurgent dollar.

Japan’s Nikkei 225 edged down 0.03 percent, with gains in most tech stocks offset by losses in auto names. South Korea’s Kospi rose 0.67 percent as markets returned from a public holiday.

Australia’s S&P/ASX 200 gained 0.07 percent, as steep gains in the energy sub-index, which was up by 3.26 percent, were offset by declines in the health care, information technology and financial sub-indexes.

US stocks ended little changed on Tuesday as declines in Home Depot and other retailers following results offset upbeat US retail sales data.

The S&P 500 consumer discretionary index, down 0.9 percent, also took a hit from a steep fall in the shares of Coach and Advance Auto Parts after disappointing results. The S&P 500 retail index was down 1.6 percent.

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