Sensex, Nifty Unchanged For Second Day Ahead Fed Meet

Shares of the state-run tourism company jumped as much as 20 percent, the most in four months to Rs 597 after the government announced transferring three hotels owned by the company to the respective state governments.

Indian shares ended little changed for a second day ahead of the U.S. Federal Reserve’s decision on monetary policy.

The S&P BSE Sensex was unchanged at 32,400 and the NSE Nifty 50 Index was lttle changed at 10,141.

Fourteen out of 19 sector gauges compiled by BSE declined led by the S&P BSE Telecom Index's 0.77 percent drop. On the flipside, the S&P BSE Capital Goods Index was the top sectoral gainer, up 0.5 percent.

• Titagarh Wagons: The West Bengal-based railway wagon maker jumped as much as 11.25 percent, the most in over 19 months, to Rs 131. Trading volume was 13.1 times its 20-day average.
• Indo Tech Transformers: The Chennai-based electrical transformer maker rallied as much as 20 percent, the most in 11 months, to Rs 258. Trading volume was 75.7 times its 20-day average.
• ISGEC Heavy Engineering: The Maharashtra-based industrial machinery maker rose as much as 11.58 percent, the most in over seven months, to Rs 7,048. Trading volume was 60.7 times its 20-day average.
• Vivimed Labs: The advanced as much as 20 percent, the most in over three months, to record high of Rs 138.20. Trading volume was 12.4 times its 20-day average.

Shares of the government-owned banks were trading higher in an otherwise subdued session. The Nifty PSU Bank Index was the top sectoral gainer, the index rose as much as 1.78 percent, the most since September 12.

• Bank of Baroda has 7.52 crore shares (or 3.26 percent equity) change hands in a three block deals. The stock extends gains to 3.2 percent after the transaction.

Buyers and sellers were not immediately known.

Source: Bloomberg

Shares of the Hyderabad-based IT company jumped as much as 5 percent to hit record high of Rs 79.85 after it won Rs 100 crore order from Medical Council of India. The order is for implementing a closed-circuit television solution, the company said in a stock exchange filing.

The Mumbai-based tractor will buy of Turkish farm equipment maker for Rs 478 crore. Shares of the company jumped as much as 1.15 percent, the most since September 13, to Rs 1,310.

Shares of the radio operator jumped as much as 6 percent to Rs 889, its highest level in over a month, after it started radio broadcast from Jammu.

The state-run oil explorer jumped as much as 3.13 percent to Rs 171, its highest level in over three months after its latest discovery on the west of Mumbai High offshore fields is estimated to hold gas reserves of 20 million tonnes, news agency Reuters reported citing unidentified people familiar with the matter.

Shares of the Hyderabad-based pharma company rose as much as 6.1 percent to Rs 915.9, its highest level in nine months, after it said all previous observations for Unit-2 at Visakhapatnam facility have been confirmed as “completed and resolved” by the U.S. drug regulator.

The U.S. Food and Drug Administration had issued an import alert in March and a warning letter in May for Unit II. Plants on the FDA's import alert list cannot export drugs to the U.S.

The drugmaker, however, received a Form 483 citing six observations after the completion of the latest inspection carried out from September 11 to 19, the company said in a notification.

It said these observations were procedural and the company will be responding to these within the stipulated time.

Shares of the Bangalore-based drugmaker jumped as much as 3.15 percent to Rs 1,041, its highest level in over a month after the U.S. drug regulator approved Omega-3-Acid Ethyl Esters Softgel capsules.

Key Highlights:

• The drug is a generic version of Lovaza and will be manufactured at its plant in Bangalore
• Capsule is an added supplement to diet to reduce triglyceride levels in adult patients
• It has market of $300 million per annum, according to IMS

Shares of the Mumbai-based infrastructure construction company jumped as much as 1.76 percent to Rs 1,247.50, its highest level in two months. Its hydrocarbon division bagged an engineering, procurement and construction order from Kuwait Oil Company.

Key Order Highlights:

• Order is for laying a pipeline between North Kuwait and Ahmadi
• Total value of contract is Rs 1,700 crore
• Project is expected to be concluded in the third quarter of 2020

Tyre makers gained after the government imposed anti-dumping duty on import of certain type of radial tyres used in buses and trucks to protect domestic manufacturers from below cost shipments from China for five years.

Gainers Among Tyre Companies

• JK Tyre surged 11.7 percent
• Apollo Tyres jumped 4 percent
• MRF advanced 2.4 percent
• Ceat rose 2.9 percent
• Balkrishna Industries gained 2.2 percent

Tata Steel shares advanced over a percent after Thyssenkrupp and Tata Steel reached a framework agreement to merge their European steel businesses, people familiar with the matter told Bloomberg.

Reliance Industries rose to a record high of Rs 872.10 after telecom regulator cut the fees operators pay for cross-network calls by more than half. The move will benefit smaller companies like Mukesh Ambani’s Reliance Jio.

While, shares of Bharti Airtel fell as much as 6 percent and Idea Cellular declined as much as 7.6 percent.

Indian shares edged higher led by gains in Reliance Industries which rose after TRAI cut interconnect usage charge.

The S&P BSE Sensex rose 0.3 percent to 32,499.88 and the NSE Nifty 50 Index advanced 0.23 percent to 10,171.

Twelve out of 19 sector gauges compiled by BSE edged higher led by the S&P BSE Energy Index's 1.35 percent gain. On the other hand, telecom stocks were among the worst performers, the S&P BSE Telecom Index declined 1.7 percent.

• ICICI Lombard General Insurance IPO subscribed 2.9 times at close.
• SBI Life Insurance IPO opens today; issue price Rs 685-700 per share.

• Nifty September Futures closed with a premium of 21 points from 22 points on Monday.
• September Nifty Futures open interest unchanged, Bank Nifty open interest down 3 percent
• India VIX closed 0.2 percent higher at 11.46
• September series highest Call base at 10,200 (open interest at 55.8 lakh, up 4 percent )
• September series highest Put base at 10,000 (open interest at 59.6 lakh, open interest down 4 percent)
• Call strikes 10,150, 10,200 see open interest addition
• Put strikes 10,050, 10,100 see open interest addition

CLSA On Reliance Industries

• Maintain ‘Buy’; target price hiked to Rs 1,050 per share from Rs 990
• IUC cut drives 8 percent upgrade in FY18-20 EPS estimates
• Jio could become profitable before tax and generate free cash flow by early FY19
• Other triggers: Continued strength in GRMs, start of key downstream projects

Citi On Havells

• Maintain ‘Neutral’; target price hiked to Rs 525 per share from Rs 500
• Seeing improvement in primary demand from second week of August
• Demand growth led by re-stocking and onset of festive season
• Lloyd integration has been smooth and has thrown no negative surprises

Deutsche Bank Markets Research On Whirlpool India

• Maintain ‘Hold’; target price hiked to Rs 1,120 per share from Rs 1,080
• Strong re-stocking demand before festive season could lead to 15-20 percent growth
• Launched new models as per market needs
• Raise revenue estimates by 2 percent
• Reduce EBITDA margins by 50 basis points, leading to cuts of 2-4 percent in EPS

Credit Suisse On Adani Ports & SEZ

• Maintain ‘Outperform’; target price hiked to Rs 460 per share from Rs 360
• Positive outlook on container growth as well as capacity expansion
• Coal volumes to remain stable; no incremental decline
• Expect growth across other commodities
• Triggers: reasonable valuation, strong balance sheet, cash flows and likely dividend increase

Credit Suisse On L&T

• Maintain ‘Outperform’; target price hiked to Rs 1,425 per share from Rs 1,330
• Visibility improves on Mumbai trans-harbour opportunity; L&T emerged as likely winner
• L&T exploring stake sale in road projects via an infrastructure investment trust
• Electrical business sale could be a big divestiture
• FY20 EPS estimates hiked by 2 percent

Axis Capital On ABB Engineering

• Upgrade to ‘Buy’; Hiked target price to Rs 1,750 from Rs 1,400
• Focus on renewables to push its products in T&D segment
• Four-times jump in railways’ capex plan for FY15-19 to boost railway revenues
• Management expects exports to grow 16-19 percent over CY17-20

Axis Capital On LIC Housing Finance

• Maintain ‘Buy’ with target price of Rs 790 per share
• Loan growth to remain stable at 15 percent; asset quality to improve
• Margins to bottom out in Q2FY18, due to pressure on yields given the PLR cut in May
• LIC Housing Finance can deliver 18 percent RoE over FY19

• Telecom stocks in focus as the telecom regulator cut interconnect charges to 6 paise from 14 paise currently. Termination charges will be nil from 2020.
• Hindustan Copper signs memorandum of understanding with Nalco and Mineral Exploration Corp to form a joint venture for exploration and sale of minerals
• Shreyas Shipping to acquire a container vessel of about 1500 TEUs. Delivery expected by Mid-October
• Edelweiss increased holding to 92.20 percent in ECL Finance
• Shilpi Cables says BDR Builders and Developers acquired 18.47 percent stake in the company
• Gujarat Apollo bought back 9.98 lakh shares from May 4 to September 19 for a total amount of Rs 17.86 crore
• Entertainment Network commenced broadcast from its radio stations in Jammu
• Bajaj Finserv partners with Flipkart to offer no cost EMI option
• India Infoline Finance to consider fund raising on September 25
• Yes Bank: Last day of trade before stock split from Rs 10 to Rs 2
• Graphite India & Jai Corp: Circuit filter revised to 10 percent
• Autolite (India): Circuit filter revised to 5 percent
• Dixon Technologies and Bharat Road Network added to BSE IPO Index
• Lasa Supergenerics, Dishman Carbogen Amcis and Provestment Services to be listed on September 21

• Arun Jaitley Discusses Ways To Revive Economic Growth
• TRAI’s Call Connect Decision May Trigger Another Legal Wrangle
• NPA-Laden State-Run Banks Crimp Advance Tax Collection At 10.6%
• Telecom Experts Rue TRAI’s ‘Nail In The Coffin’ Move
• Eighteen Of 43 McDonald’s Outlets In Delhi Reopened, Says Vikram Bakshi
• Names of 55,000 debarred directors made public
• Scores die as Mexico rocked by month’s second major quake

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.12 percent to 10,157.

Asian equities fluctuated and dollar traded above its recent lows ahead of the U.S. Federal Reserve’s decision and renewed geopolitical tensions surrounding North Korea.

S&P 500 Index rose for the third consecutive day. The Mexican peso slipped after a 7.2 magnitude earthquake struck near Mexico City.

Yen snapped a seven-day losing streak and gained against the dollar.

Commodities

• West Texas Intermediate crude rose 0.67 percent to $49.81 a barrel
• Gold rose 0.47 percent to 1,312.76 an ounce, snapping a three-day loss