10:17 AM
Srei Equipment Finance to raise Rs 2,000 cr through IPO
Srei Equipment Finance (SEF), wholly-owned subsidiary of Srei Infrastructure Finance, plans an initial public offer (IPO) of equity, to result in dilution of up to 25 per cent of the post-issue paid-up equity capital share.
The company expects to raise Rs 1,800-2,200 crore through the IPO, expected to hit the market in the last quarter of this financial year. The proceeds would be used to fund growth. The company is looking at 20-30 per cent annual growth over the next few years, said Hemant Kanoria, chairman and managing director.
Click here for full report10:10 AM Nifty PSU Banks, Nifty Pharma were also trading lower in the morning trade, down 1.2% and 0.9% respectively.
9:57 AM Sikka resigns
Sikka cited a continuous stream of distractions and disruptions over the recent months and quarters and increasingly personal and negative attacks among his reasons for leaving. He said that it prevented management's ability to accelerate the Company's transformation.
Click here for the BSE filing
Vishal Sikka (Photographer: Saggere Radhakrishna)
9:53 AM R Seshasayee, Chairman of the Board on Sikka's resignation
Vishal has made a seminal contribution to the transformation of Infosys, and he will be remembered for infusing a refreshed sense of direction, purpose and energy in the organization. His vision for the future of the industry and the Company will remain a strong reference point as we chart the future course for Infosys in this new era in our rapidly evolving industry.
9:50 AM While Infosys tanked 7%, its peer TCS gained over 2% in the early-morning deals.
9:44 AM All sectoral indices except Nifty FMCG were trading in red on NSE
Source: NSE
9:32 AM Nifty IT falls 1.5%
Nifty IT index fell over 1% as Infosys cracked post Vishal Sikka's resignation
Source: NSE
9:27 AM Top Sensex gainers and loser
Source: BSE
9:23 AM Infosys cracks
Infosys cracked over 5% after Vishal Sikka resigned as MD & CEO for the company. He will be the Executive Vice Chairman for the IT major.
Vishal Sikka
9:21 AM Broader Markets
Broader markets were in line with the benchmark indices with NSE Midcap and BSE Smallcap down 0.6% and 0.7% respectively
9:20 AM Markets open lower
At 9:17 am, the BSE S&P Sensex was trading at 31,591, down 203 points while the Nifty50 was ruling at 9,841, down 62 points
9:13 AM
How liquidity has distorted the reality of Indian market (Source: Ambit Capital report)
The Sensex’s headline forward P/E of 20.5x (relative to a 10-year average of 16.4x) does not fully capture the extent to which abundant domestic liquidity has pushed valuations of prominent stocks to hitherto unseen levels. More importantly, these valuations seem to be unjustified unless there is a massive pick-up in earnings growth after six consecutive years of weak earnings growth.
Banking and consumer staples sectors are the most at risk of a substantial de-rating in light of their extreme valuations vis-à-vis lacklustre earnings growth. Specifically we highlight HDFC Bank, Indusind Bank, Nestle, Marico and GCPL as the stocks most at risk
9:13 AM Vishal Sikka resigns as Infosys MD and CEO
According to a BSE filing, Vishal Sikka resigned as the MD and CEO of Infosys immediate effect. He has now been appointed as the Executive Vice-Chairman.
UB Pravin Rao has been appointed as the Interim-Managing Director and Chief Executive Officer
9:08 AM
Edelweiss Research on draft pharma policy
Recently, a new draft pharma policy note has been released where the focus seems to be on self reliance and ‘Make in India’ versus earlier focus solely on affordability of drugs. Formulations produced with indigenously produced API and its intermediates will be out of price control for 5 years.
The proposed policy does not emphasise on doctors to prescribe the salt name, except for government procurement and dispensing. Other important highlights are the principle of ‘one–company, one–drug, one-brand name and one-price’ and restrictions on ‘loan licensing’. This is likely to usher rationalisation and much needed consolidation in the industry. Moreover, the policy proposes to fix trade margins to create a level playing field and also make marketing code mandatory
9:03 AM
Derivative Strategy on Infosys from Motilal Oswal Securities
BUY INFY 1020 CALL @ 25
SELL INFY 1060 CALL @ 13
BEP : 1032
MAX RISK : 12 POINTS
9:02 AM
Nifty Bank outlook (Source: Angel Broking)
The Nifty Bank index has precisely halted its pullback move near our mentioned resistance around 24508, which is the 50% retracement of the recent corrective move from 25199 to 23822.The 'RSI' oscillator on the daily and well as the hourly chart has turned lower. This price and RSI set up is indicating a higher probability of another leg of corrective move in the index in near term.
We continue to be cautious in the Nifty Bank index and its constituents from a near-term perspective. Only if the index crosses the mentioned resistance of 24508, we will then re-access the charts and change our stance on the index. The intraday supports for the Nifty Bank index are placed around 24100 and 23950 whereas resistances are seen around 24400 and 24508.
9:01 AM
Top trading Ideas from Prabhudas Lilladher:
BHARAT FINANCIAL - BUY
CMP: Rs 847.70
TARGET: Rs 920
STOP LOSS: Rs 805
EXIDE INDUSTRIES - BUY
CMP: Rs 213.30
TARGET: Rs 226
STOP LOSS: Rs 200
ASHOK LEYLAND - BUY
CMP: Rs 105.30
TARGET: Rs 115
9:00 AM
Nifty view from MOSL:
If Nifty sustains below 9,880, then some profit booking could drag it towards 9,820 to 9,775 zones, while a hold above 9,928-9,950 could drive the fresh up move towards 10,000-10,050 zones.
9:00 AM
Edelweiss Research on Prabhat Dairy
Management guided for sales of Rs 20 billion by 2019-20, led by consumer division and milk, ghee and cheese. Prabhat expects to launch new products in beverages and specialty cheese in next few years.
Further, B2B:B2C mix should improve to 50:50, from 70:30 currently. To achieve this, Prabhat aims to double outlets from current 100k outlets in general trade by 2020, and enhance presence in modern trade from mere 140 outlets currently to having pan-India presence with 3,000 outlets
With Prabhat extending its trajectory in value-added products, we expect sales/EBIDTA/PAT CAGR at 20%/24%/32% over FY17-19. Maintain ‘BUY’ with target price of Rs 150, based on 18x FY19E EPS. At CMP, the stock trades at 15.7x FY19E EPS
8:58 AM
Centrum Broking on Sun Pharma
We maintain our Hold rating on Sun Pharma (SPIL) and revise our target price to Rs490 (earlier Rs600) based on 26x March’19E EPS of Rs18.7. SPIL’s Q1FY18 results were below our expectations due to pricing pressure in the US and impact of GST in the domestic market. The drug maker’s revenue declined 25% YoY, margins narrowed 1,780bps to 17.6%, and net profit fell 73%.
Sun Pharma is facing supply constraints at its Halol facility. The management has guided for a single digit decline in revenue and EBIDTA margin of 20-22% for H2FY18. Key upside risks to our assumption include higher revenues from the US market and key downside risk includes regulatory risks for its manufacturing facilities catering to the global markets
8:57 AM
Dollar Check
The dollar was indecisive, falling against the safe haven yen but rising against the euro, with the common currency hit by meeting records from the European Central Bank that showed caution about removing monetary stimulus too soon.
A picture illustration shows a 1 euro coin on one US dollar banknotes. Photo: Reuters
8:56 AM
SGX Nifty
The Nifty50 futures on the Singapore Stock Exchange were trading 58.50 points lower at 9825 indicating a negative opening for the domestic market.
8:55 AM
Economy watch (Source: Pranjul Bhandari, Chief India Economist, HSBC)
India's trade deficit narrowed in July as the weakness in imports outpaced that of exports. Weaker imports reflect the sluggishness in domestic demand, and details suggest that investment is much weaker than consumption. Notwithstanding today's print, we expect the trade deficit to remain wider than last year on the back of a stronger Rupee supporting imports over exports, weak export orders and expectation of higher import demand once GST related uncertainties are put to rest
8:55 AM Asian Markets Weak
Asian stock investors joined a global retreat from riskier assets on Friday and the dollar wavered on growing doubts about US President Donald Trump's ability to fulfill his economic agenda.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.5% in early trade, but still looked set to gain 1.4% for the week after tensions between North Korea and the United States came off the boil.
Japan's Nikkei slid 1.2% as the yen rose, and looked set to lose 1.3% for the week.
Illustration: Ajay Mohanty
8:54 AM
Stock recommendation: ONGC (Source: G.Chokkalingam, Founder & Managing Director, Equinomics Research)
We see three positive catalysts for ONGC over the next year: (1) continued demonstration of subsidy reduction, (2) better gas earnings on upward price revision (even at $50/bbl oil) and further volume ramp-up. We recommend a BUY on the stock with a target price of Rs.210/- (which is 10.5x its FY2019E EPS of Rs.19.9)
8:52 AM
Market outlook (Source: SMC Global)
Today the markets are likely to open on negative note. All emerging markets are trading in red. The coming session is likely to witness a range of 9,800 on declines (Nifty) and 10,000 on advances
8:52 AM
Spain terror attack spooks investors
Confidence was shaken after a van mowed through crowds of tourists in Barcelona on Thursday, killing at least 13 people and injuring more than 100 in an attack authorities were treating as terrorism.
A manhunt is underway for the driver of a van that mowed through crowds of tourists on Barcelona's most famous avenue.
8:51 AM Wall Street
US stocks sold off on Thursday, with the S&P 500 recording its biggest daily percentage drop in three months as escalating worries about the Trump administration's ability to push through its economic agenda rattled investors.
The Dow Jones Industrial Average ended down 274.14 points, or 1.24%, to 21,750.73, the S&P 500 lost 38.1 points, or 1.54%, to 2,430.01 and the Nasdaq Composite dropped 123.20 points, or 1.94%, to 6,221.91.
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