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Closing Bell
Key stock indices went up today on steady buying by domestic financial institutions and retail investors in auto, banking, metal and infrastructure taking positive hint from Finance Minister Nirmala Sitharaman’s comments that the government will frontload expenditure on infrastructure. Auto shares scored gains as the government is trying to find out options for the scrapping of old scooter and motorcycles.
After opening higher at 37,251.03, the Sensex touched an intraday high of 37,343.46, before settling at 37,270.82, up by 125.37 points or 0.24% over its previous close.
Similarly, the NSE Nifty ended higher by 32.65 points or 0.30% at 11,035.70.
Auto shares up on hopes of GST rate cut
Auto stocks achieved notable gains after reports that the government is working on the scrappage policy for two-wheelers. Road Transport and Highways Minister Nitin Gadkari said that the government is trying to find out options for the scrapping of old scooter and motorcycles. Last week, Nitin Gadkari had also said a possible GST cut on vehicles — including hybrid ones — will soon be taken up with Finance Minister Nirmala Sitharaman.
The Nifty Auto index rose 258.25 points or 3.60% at 7,423.60 on the NSE today.
Nifty Auto chart
Infrastructure, cement gain on FM comments on stimulus
Infrastructure and cement stocks too rallied following Finance Minister Nirmala Sitharaman’s comments that the government will frontload expenditure on infrastructure. Sitharaman on Tuesday said that the government will frontload infrastructure spending in a bid to give the economy a boost and announce one or two more sets of stimulus measures aimed at reviving growth in the coming quarters.
On the NSE, GMR Infrastructure rose 6.65% to Rs 16.85, Reliance Infra gained 5.95% at Rs 41, Adani Power gained 3.90% at Rs 62.50 and BHEL was up 3.90% at Rs 52.15. Shree Cement rose 2.40% to Rs 18,500 and ACC gained 1 per cent at Rs 1,486
Is there much to gain from bank mergers?
Every policy has a perspective and purpose. Merger of public sector banks (PSBs) too might have its own reason. Pressures on the banking sector are building up globally, more so in emerging markets.
The PSU bank merger is expected to impact the recruitment of clerks, in particular. File photo of a Canara Bank branch in Mumbai
Key stock indices rose today on steady buying by domestic financial institutions and retail investors in auto, banking, metal and infrastructure.
After opening higher at 37,251.03, the Sensex touched an intraday high of 37,343.46, before trading at 37,308.93, up by 163.48 points or 0.44% over its previous close.
Similarly, the NSE Nifty ended higher by 44.35 points or 0.40% at 11,047.40.
Auto shares up on hopes of GST rate cut
Auto stocks achieved notable gains after reports that the government is working on the scrappage policy for two-wheelers. Road Transport and Highways Minister Nitin Gadkari said that the government is trying to find out options for the scrapping of old scooter and motorcycles. Last week, Nitin Gadkari had also said a possible GST cut on vehicles — including hybrid ones — will soon be taken up with Finance Minister Nirmala Sitharaman.
The Nifty Auto index rose 262.15 points or 3.66% at 7,427.50 on the NSE today
Nifty Auto index
Premier Explosives stock climbs 10% on new order
Premier Explosives climbed over 10 per cent to Rs 185 on the BSE after the company said that it has received an order for solid propellant from Vikram Sarabhai Space Centre.
The order is to be executed within a period of 18 months.
This is the first order to be executed at the solid propellant plant located at our Katepally greenfield project in Telangana.
The company has already supplied this product to Sriharikota Range (SHAR) and it was successfully test fired in 2018 at Sriharikota.
Eveready Industries India continued to fall today also and suffered 5 per cent loss to Rs 67 on the NSE after media reports suggested that Duracell is set to acquire the company's battery and flashlight business in a slump sale for Rs.1600-1700 crore.
US-based Duracell Inc. is owned by Warren Buffett's Berkshire Hathaway. As per media reports, the deal includes manufacturing plants, distribution network and the Eveready brand. The american firm will only own the Eveready brand in India and become owners of an annual installed capacity of 1.5 billion batteries and over 20 million flashlights per year.
Duracell's proposed offer excludes Eveready Industries' lighting, electrical appliances, confectionery and a fast-moving consumer goods (FMCG) joint venture that clock a cumulative turnover of Rs.500-600 crore.
Debt crisis hits India’s plan to expand corporate bond market
India’s plans to expand its corporate bond market are running up against a year-long credit crisis in another obstacle for Prime Minister Narendra Modi’s efforts to jump-start a sputtering economy. READ MORE
Future Lifestyle Fashions slips 1.15%
Shares of Future Lifestyle Fashions was down Rs 5 or 1.15% on the NSE today after the board approved allotment 64.8 lakh shares at an issue price of Rs 463 per share aggregating to Rs 300 crore to Apollo India Private Equity.
Balaji Amines shares climb 7 per cent
Shares of Balaji Amines rose 7 per cent to Rs 279 on the NSE. Volumes traded in the counter as at 12 Noon were 29,301 shares.
The stock went up on reports that Balaji Amines arm has completed the EU REACH Registration process for Ethylenediamine. This registration will allow the company to supply the Ethylenediamine to large number of European customers.
BROKER'S RECOMMENDATIONS: Positional
ICICI SECURITIES
Rupee may stabilise at current levels
The rupee recorded its all-time low of 72.40 against the dollar last Tuesday, with the slide seeming endless at that time. However, the currency staged a recovery. Read more
Star Paper Mills locks in upper circuit
The stock of Star Paper Mills hit 20 per cent upper circuit on the bourses. On the NSE, the stock was locked at Rs 129.90, up by Rs 21.65 or 20%, mainly due to dividend proposal by the company at its AGM to be held on September 19, 2019.
The company will hold its AGM on September 19, and accordingly the share transfer books would remain closed from September 12 onwards for the purpose of dividend.
Star Paper Mills intraday chart (Sept 19)
Energy shares rise sharply; Goa Carbon zooms 16%
According to a report, India's energy demand is projected to grow by 4.2 per cent through 2035, an expansion faster than all major economies of the world, Oil Minister Dharmendra Pradhan said as he sought investments in the country's energy chain. The projected energy demand expansion calls for making matching investments in the energy sector; he said adding at USD 85 billion
The S&P BSE Energy index rose over 1 per cent to 4,422.57 today following steep gains in Goa Carbon, Deep Ind, Alphageo, Aban, Jindal Drill and Adani Gas that rose between 3 per cent and 16 per cent today.
Source: Kotak Securities
Foreign investors bet big on private insurers
Foreign investors are steadily increasing their bet on listed private insurers. The insurance sector received a net investment of ₹9,222 crore between April and mid-August period.
Related Stories
Life insurers’ new biz premium in June jumps 94% to ₹32,241 cr
LIC recorded two-fold rise in its new premium collection to ₹ 26,030.16 crore
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How safe is HDFC Life’s Sanchay Plus?
The funds are invested in safe bonds — G-Secs and highly-rated corporate bonds
ICICI SECURITIES INTRADAY CALL
Nifty Metal chart Sept 11, 2019 at 11 am.
Why the Govt owning 90% of many PSBs is a problem
The Centre’s holdings in public sector banks have seen a steep ₹1.6 lakh crore erosion in value over the past five years, even as it pumped in a massive ₹2.5 lakh crore of capital into these banks.
Currency Strategy Intraday
ICICI SECURTIES
Buy US$INR in range of 71.88-71.92
The dollar-rupee September contract on the NSE was at 71.84 in the previous session. Open interest declined 3.49% in the previous session. We expect the US$INR to find support at lower levels. Utilise downsides in the pair to initiate long positions.
Intra-day strategies
1. Buy US$INR in the range of 71.88-71.92
Source: ICICI Securities
BSE SECTORAL INDICES
BSE METAL CHART as at 10.40 am, Sept 11, 2019
₹2183 • TCS : Go short with a fixed stop-loss on a decisive fall below ₹2,160 levels
Rupee slips 13 paise to 71.84 against dollar
The rupee opened on a cautious note and fell 13 paise to 71.84 against the US dollar in early trade on Wednesday amid rising crude oil prices and unabated foreign fund outflows.
At the Interbank Foreign Exchange, the rupee opened at 71.82 then fell to 71.84 against the US dollar, showing a decline of 13 paise over its previous closing.
₹1222 • Reliance Ind : Buy if moves above Rs 1,235 levels
Sensex chart at 10 am Sept 11, 2019
BSE ADVANCES/DECLINES
Corporate snippets
* IOC, Haldia Petro projects worth Rs2trillion may trip on land hurdle
* SBI considering lending Rs35,000cr to NHAI for highway projects: Rajnish Kumar
* Dr Reddy’s Labs new US drug pipeline is keeping investors’ pulse ticking
* Daimler sees CV demand picking up by 2021 only
* JSW, Adani may bid for Coffee Day group-owned Sical Logistics
* Earnings rebound seen for PFC, REC by 2020-21 on 50-60% NPA provision
* ABB, NITTTR set up digital simulation lab in Chandigarh
* Hero MotoCorp to cut capex by 15-20%
* Aditya Birla Capital to raise Rs2,100cr equity capital
* Government allocates Badam coal block to NTPC
Source: YES Securities
Nifty Bank chart as at 9.50 am Sept 11, 2019
₹829 • Infosys: Sell on rallies with a tight stop-loss at ₹836 levels
IMPAL board meets to consider bonus proposal
The board of India Motor Parts & Accessories (IMPAL) will meet on Tuesday to consider an issue of bonus shares. READ MORE
Nifty Auto Chart
Nifty Auto chart as at 9.30 am, Sept 11, 2019
Sensex stocks as at 9.25 am Sept 11, 2019
Sensex chart as at 9.20 am on Sept 11, 2019
Day Trading Guide for September 11, 2019
Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:
₹2248 • HDFC Bank
₹829 • Infosys
Asian stock markets hold firm ahead of central bank meetings
Asian stock markets held firm and bond yields rose on Wednesday as hopes of diminishing US-China tensions and reduced risk of no-deal Brexit prompted investors to take profit in risk-off trade ahead of key central bank policy meetings. In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.10 per cent while Japan's Nikkei rose 0.32 per cent.
Today's Pick: Apollo Micro Systems (₹94.3): Buy
Investors with a short-term view can buy the stock of Apollo Micro Systems at current levels. The stock recorded a 52-week low at ₹69.9 last week and found support.
8.55 am
Wall St ends flat amid rate hopes, tech declines
US stocks ended flat on Monday as increased expectations of stimulus from central banks around the world were offset by losses in technology and healthcare shares. The S&P 500 financial index was among the day's best-performing groups, rising 1.5 per cent, with banks gaining 3.2 per cent. Read more
MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.1 per cent lower. File Photo
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