10:35 am Buzzing: Ujjivan Financial Services shares rallied as much as 6.4 percent after its subsidiary received scheduled bank status from the Reserve Bank of India.
The non-banking finance company informed exchanges on Tuesday that Ujjivan Small Finance Bank, the wholly owned subsidiary, has been included in the second schedule to the Reserve Bank of India Act, 1934.
“This grants the ‘Scheduled Bank’ status to Ujjivan Small Finance Bank’ from the date of notification,” it said.
“With this scheduled bank status, we can issue certificate of deposits now but there is not much changes in terms of asset mix due to scheduled bank status,” Sudha Suresh, MD & CEO, Ujjivan said in an interview to CNBC-TV18.
10:22 am Market Check: Equity benchmarks extended rally in morning as the Sensex rallied more than 200 points and the Nifty inching towards 9,900 level on positive lead from Wall Street. Investors digested the North Korea’s missile launch that flew over Japan.
HDFC, Reliance Industries, ICICI Bank, L&T, Adani Ports, Maruti Suzuki and Tata Motors gained 1 percent each while TCS was only loser.
The 30-share BSE Sensex was up 234.59 points or 0.75 percent at 31,622.98 and the 50-share NSE Nifty rose 80.85 points or 0.83 percent to 9,876.90.
The broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices rallied over 1 percent on strong breadth. More than four shares advanced for every share falling on the BSE.
10:10 am Buzzing: Shares of KEI Industries touched 52-week high of Rs 262.50, rising 7 percent in early trade on the back strong numbers declared by the company in the quarter ended June 2017 (Q1FY18).
The company’s Q1 net profit has increased by 140 percent at Rs 27.4 crore due to reduction in excise duty.
It had reported net profit of Rs 11.4 crore in the quarter ended Q1FY17.
Revenue was up 38 percent at Rs 823 crore versus Rs 597 crore.
The operating profit (EBITDA) rose 46 percent at Rs 76 crore and margins was up at 9.7 percent.
The excise duty has reduced by 32 percent to Rs 32 crore from Rs 47 crore.
9:59 am Global markets: Asia markets mostly followed the stronger lead from Wall Street overnight as traders appeared to shake off new North Korea missile concerns.
Japan’s Nikkei 225 added 0.55 percent. Across the Korean strait, the Kospi edged up 0.08 percent.
Greater China markets were mixed. The Hang Seng Index rose 0.79 percent. Mainland markets turned in a more subdued performance: The Shanghai Composite shed 0.03 percent.
Down Under, the S&P/ASX 200 slid 0.17 percent.
Equities on Wall Street began the session lower, but shook off North Korea-related jitters to close higher. The Dow Jones industrial average rose 0.26 percent, or 56.97 points, to close at 21,865.37.
9:48 am FII View: The market corrected recently from its record high but the actual correction is only around 3 percent compared to the rally of more than 22 percent since the beginning of calendar year 2017.
“The market is still at elevated valuations but fundamentals are not deteriorating. India is in a solid space backed by strong political stability,” Sandeep Bhatia, Head of Equity, India at Macquarie Securities Group said in an interview to CNBC-TV18.
Hence, he would recommend buying into dips despite geopolitical tensions. He believes the trend is still up on broader perspective due to strong macro but he is not upgrading earnings forecast.
He wants to wait for earnings recovery and private capex recovery before giving any Nifty target.
GST numbers announced by the Finance Minister Arun Jaitley on Tuesday were above expectations, he said. Bhatia expects GST collections to go up in August and September also.
9:38 am Market Outlook: Vinod Karki of ICICI Securities said since the beginning of CY17, the rolled forward Nifty EPS has remained stagnant at near Rs 540, which effectively means the earnings downgrade is being compensated by the incremental rolling forward of earnings into FY19.
Given the current slowdown in industrial activity and credit growth, it would be naïve to expect sustained earnings recovery will revive in the short term, he feels.
For Nifty, he expects 16 percent earnings CAGR over FY17-20, building in further earnings downgrades for FY18 and FY19.
“1-year forward target for Nifty stands at 10,500 based on September 2019 EPS of Rs 610 and target multiple of 17.2x, Karki said.
9:25 am Monsoon: Met Department told CNBC-TV18 that they expect moderate rains in Mumbai but don’t expect heavy rains around Mumbai today.
Widespread activity of rain in Maharashtra will continue, it said.
9:15 am Market Check: Equity benchmarks opened sharply higher on Wednesday after a turmoil in previous session.
The 30-share BSE Sensex was up 167.09 points or 0.53 percent at 31,555.48 and the 50-share NSE Nifty rose 64 points or 0.65 percent to 9,860.05.
Aurobindo Pharma, Hindalco Industries, HDFC, Ambuja Cements, BPCL, Eicher Motors, Yes Bank and BPCL gained 1-2 percent while Asian Paints, Power Grid and NTPC were under pressure.
Nifty Midcap was up 1 percent on strong market breadth. Ujjivan Financial surged 5 percent as RBI granted it scheduled bank status.
Bajaj Finance, M&M Financial, Tata Global, Avenue Supermarts, RBL Bank, Inox Leisure, Pincon Spirit, Globus Spirit, Amtek Auto, Jaiprakash Associates, Ruchi Soya and IVRCL rallied up to 7 percenet.
Visa Steel, Videocon Industries and Jai Balaji Industries were down up to 5 percent.