Live Sensex and Nifty coverage: Fed announcement throws Sensex a massive 440 volt shock

Last Updated: Fri, Sep 22, 2017 16:28 hrs

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Live Markets Commentary:

Sify Editors @ 4:30 PM:
Fed announcement throws Sensex a massive 440 volt shock

Nifty and Sensex were severely impacted and ended the trading session beyond a 1% loss. While Sensex was 447.60 points (1.38%) in the red, the Nifty50 ended on 9964.40, down by 157.50 points (1.56%) and well beyond the 10,000 figure mark.

On the thirty scrip sensitive index, only Wipro (up by 1% at 294.05) and Coal India (up by 0.12% at 253.90) managed to show some respite. Stocks such as ICICI Bank (- 2.77%), LT (-3.49%), and Tata Steel (-4.70%) were bleeding in the red.

On the broader BSE, most indices ended with an average 1.5% loss. Sensex Next50 was down by 2.95% down, while midcap was down by 2.71%. Small Cap too was bleeding in the red by 2.93%.

Among sector specifics, Information Technology and Teck stocks were the face savers, showing a loss of -0.84%. Basic Materials (-3.55%), Capital Goods (-3.29%) and Manufacturing (-2.68%) were the worst sectors to invest in the day.

Thursday's star performer Ipca Labs got drubbed in Friday's session. The scrip was down by 50.30 points. IB Realties too was down by nearly 20 points.

Sify Editors @ 3:50 PM:
Sensex, Nifty end lower; banks fall

Indian shares ended lower for a fourth straight session on Friday, weighed down by banking stocks, as the government's plan for $7.7 billion stimulus spending raised concerns over fiscal deficit.

The Nifty closed down 1.56 percent at 9,964.40, while the benchmark Sensex fell 1.38 percent to 31,922.44. Both indexes posted their biggest intraday percentage decline in 10 months.

The Nifty lost 1.22 percent this week, while the Sensex fell 1.09 percent. Both indexes posted weekly losses for a second time this month.

Sify Editors @ 2:00 PM:
ITI soars for second successive session on bagging huge defence deal

Shares of state-run telecom equipment manufacturing and network communications company ITI Limited are up sharply on Friday, extending previous session's strong upmove.

After skyrocketing and closing with a 20% gain on Thursday, the ITI stock zoomed to Rs 146.55 earlier in the session today, adding another 20%. Now, at Rs 143.45, the stock is up 17.4% from its previous close.

The stock has been garnering attention after the company was declared as winner in the Rs 7000 crore Phase IV Tender of Army Static Switched Communication Network - Ascon, for deploying and maintaining the Army's strategic communication network across the country.

Besides civil works for providing required infrastructure at various sites nd optical fiber, ITI has to supply, instal, commission and maintain telecom equipment like IP/MPLS Routers, Microwave Radio, Satellite Terminals, NMS, Mobile Services and Test Equipment, etc.

Currently, ITI has orders worth over Rs 1800 crore on hand. Over the next four years, the PSU aims to bag orders worth Rs 10,000 crore.

For the third successive session, the ITI counter is witnessing huge block deals. Today, at the ITI counter on BSE, around 3.7 million shares have changed hands so far in the session, nearly six times the average daily volume of 6.43 lakh shares. On the National Stock Exchange, the ITI counter has clocked a volume of nearly 10 million shares so far in today's session.

Around this time last year, the stock was hovering around Rs 26. In the last one year, ITI has risen more than 5.5 times from that level.

Sify Editors @ 12:30 PM:
Sensex, Nifty fall 1 percent; banks top drag

Indian shares fell 1 percent on Friday, while the rupee hit its weakest point since early April amid concerns that the government's plan for a stimulus to halt an economic slowdown may have a negative impact on the fiscal deficit.

India is considering a plan to loosen the fiscal deficit target so that it could spend an additional 500 billion rupees ($7.71 billion) in the financial year ending March 2018, two government sources said on Thursday.

Finance Minister Arun Jaitley had said earlier that the government was looking for ways to lift economic growth, which slipped to a three-year low of 5.7 percent in the quarter to end-June.

Global investor sentiment was subdued after North Korea said it might test a hydrogen bomb in the Pacific Ocean and escalated a war of words with U.S. President Donald Trump.

"This remains a potential threat to the overall markets," said Teena Virmani, vice president, Kotak Securities.

The broader NSE Nifty was down 1.17 percent at 10,003.10 as of 0708 GMT, while the benchmark BSE Sensex was 0.95 percent lower at 32,061.94.

Both indexes extended falls into a fourth session and were on track to post weekly losses for a second time this month.

Sify Editors @ 12:00 PM:
Growth recovery to drive India's tyre sector re-rating - Deutsche Bank

Deutsche Bank starts coverage on MRF Ltd and Ceat Ltd with "buy" rating and PT of 80,000 rupees and 2,150 rupees respectively, citing revival in volume growth and margins.

India truck tyre demand should recover to 8 pct p.a. in FY17-20 vs. 1 pct p.a. in FY14-17 - Deutsche Bank analysts.

Brokerage sees EBITDA margins in sector improving by 600 - 1,100 bps from current depressed levels, driven by lower raw material prices, favourable anti-dumping duty on Chinese tyres.

Brokerage maintains its "buy" recommendation on Apollo Tyres Ltd, but raises PT by 18 pct to 325 rupees.

Apollo, on which 17 out of 21 brokerages have a "buy" or higher rating, was up 2 pct in a weak market which was more than 1 pct down.

MRF, one of India's most expensive stocks, rose as much as 1 pct to 64,000 rupees. The stock is up about 45 pct in one year.

Ceat gained 1.8 pct at 1,773.8 rupees, snapping 3 straight sessions of losses.

Sify Editors @ 11:30 AM:
Prataap Snacks IPO: Stock may find it tough to get good premium on listing

The Initial Public Offering from one of the leading snack food companies in the country, Prataap Snacks Limited, opened for subscription Friday morning.

The Rs 482-crore issue size includes Rs 200 crore through fresh equity issue and the rest from the offer for sale of around 30 lakh shares. The company intends to utilise the proceeds of the IPO to fund its capex, reduce debt and for investment in subsidiary marketing and branding. Funds will be used for other corporate purposes as well.

Prior to the IPO, Prataap Snacks mopped up Rs 143.4 crore by allotting shares to about 15 anchor investors, at the rate of Rs 938 a share. Among the institutions which got shares in the anchor investors category were Small Cap World Fund Inc, Fidelity Funds, Goldman Sachs India Ltd, HDFC Trustee Co. Ltd and SBI Life Insurance Co. Ltd.

At first look, the price band of Rs 930 - 938 appears a bit higher, if one considers the fact that the price values the company at more than 200 times its earnings in financial year 2016-17.

But then, Prataap Snacks is among the fastest growing companies in the food space, and it won't be a surprise if the company sees a notable improvement in profitability in the quarters ahead.

The compounded annual growth rate of the company increased 27% in the five years to 2016-17. Gross margins were somewhat weak, at around 39%, if one compared the same with some peers in the foods space. Net margins and EBITDA margins too were rather low during the four years, compared to other major players in this space.

Extruded snacks contributed to about 63% of the company's revenue last financial year, while Potato chips and Namkeen contributed 23.85% and 12.23%, respectively.

The company's presence is fairly strong with nearly 220 stockists across 26 states and one union territory. It has more than 3500 distributors spanning across the country.

The main products of Prataap Snacks, which was incorporated in the year 2009, are chips, extruded snacks and traditional savoury. The company's savoury products are sold under brand names like Chulbule and Yellow Diamond. The company's subsidiary is also looking at stepping into the business of chocolate-based confectionary snacks.

Most of the brokerages and research firms are of the view that there not be much listing gains for the stock, or gains may be rather thin.

Sify Editors @ 11:00 AM:
Reliance Home Finance debuts at Rs 107 on NSE

Housing finance company Reliance Home Finance Ltd -- part of Anil D Ambani-led Reliance Group -- on Friday made its trading debut in NSE at Rs 107.20.

Tina Ambani, wife of Anil Ambani, rang the bell signalling the listing of Reliance Home Finance's stock.

Speaking at the listing function Anmol Ambani, Executive Director, Reliance Capital Ltd said the company will leverage the growth prospects of the untapped housing market.

Reliance Capital holds 51 per cent in Reliance Home Finance.

"All Shareholders of Reliance Capital Ltd. have already received one free share of Reliance Home Finance Ltd. for every share held in Reliance Capital Ltd. as on Record Date i.e. September 6, 2017," Reliance Capital had said earlier in a statement.

Reliance Home Finance has assets under management (including securitised portfolio) of Rs 13,022 crore ($2 billion) as of June 30, 2017.

At around 10.25 a.m. Reliance Home shares were changing hands at Rs 109.20 at BSE.

Sify Editors @ 10:30 AM:
NSE index breaks support at 10,062; may move towards 9,990

India's NSE index breaks below a support at 10,062, the 23.6 pct retracement level of the short-term uptrend from the Aug. 11 low of 9,685.55 to Sept. 19 high of 10,178.95.

Wave pattern suggests a short-term 5 wave cycle is complete and corrective cycle has started.

Index also cuts below a technical indicator - Parabolic SAR, which points to a possible downtrend.

A break below the 20-day exponential moving average may lead to a move towards the 38.2 pct retracement level at 9,990.

On the upside, index may find resistance at 10,062, the 23.6 pct retracement level and 10,107, the 14.6 pct level.

Sify Editors @ 9:30 AM:
The Sensex opened in the red

The Sensex was trading 192.07 points or 0.59 per cent lower during the early session.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) was also trading 63.05 points or 0.62 per cent lower at 10,058.85 points.

The BSE Sensex, which opened at 32,339.50 points, was trading at 32,177.97 points in the early session, lower 192.07 points or 0.59 per cent from the previous day's close at 32,370.04 points.

The Sensex touched a high of 32,342.81 points and a low of 32,176.60 points in the trade so far.

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