Market Live: Sensex, Nifty open higher amid volatility; Divis Labs, Sun Pharma dip | The GRS Solution :-
9:35 am Buzzing: Shares of Petron Engineering Construction was locked at 5 percent upper circuit on order win from JSW Steel.
There were pending buy orders of 20,115 shares, with no sellers available.
The company has received purchase order from JSW Steel for supply, fabrication, erection & alignment of prefabricated steel structure for Blast Furnace#2 and raw material handling system (RMHS) conveyor gallery & junction house at Dolvi, Raigad, Maharashtra, India for an approximately value of Rs 280 crore (Including GST),” as per company release.
9:31 am China's industrial profit growth: Annual profits at China's industrial companies rose 24 percent in August, accelerating from the previous month in an indication economic growth remains in good heart even as signs emerge of fading momentum following a robust first half.
The upbeat earnings is another sweetener for authorities as Beijing focuses on stripping out financial risks from years of debt-fueled growth and keeping the economy on a steady footing ahead of a crucial party gathering next month.
Profits in August jumped 24 percent to 672 billion yuan ($101.21 billion), the biggest percentage jump since the January-Feb period, the National Bureau of Statistics (NBS) said on Wednesday. Annual profit growth was 16.5 percent in July.
9:25 am Macro problems: Amid reports of a fiscal stimulus to boost the sagging economy, a foreign brokerage has warned the present macro problems are due to higher spending and not lack of it and also not due to low revenue receipts and hence a pump priming maybe counterproductive this time around.
"The fiscal stress is more a result of excess spending thus far, which has not left much room for spending in the remaining months: it can rise only 1.5 per cent y-o-y in August-March versus 23.1 per cent in April-July to meet the FY18 budgeted spending target.
"Therefore, a fiscal stimulus may not be so much to boost growth as to prevent a bigger drag," Nomura India chief economist Sonal Verma has said in a report.
Noting that the current fiscal trends suggest spending is to blame, not revenue, she said revenue collection for April-July was only 2.1 per cent below the historical run- rate, but better than in recent years.
9:20 am Non-life insurer to debut: ICICI Lombard General Insurance Company is set to debut on the bourses today. It has set final issue price at Rs 661 per share, the higher end of price band.
Analysts don't expect strong listing gains as the initial share sale offer that ended last week was oversubscribed 3 times. In addition, equity markets have been subdued from last week, they said.
The reserved portion of qualified institutional investors has oversubscribed 8.17 times while the retail category showed a subscription of 1.22 times and non-institutional investors 0.82 times.
The Rs 5,700-crore public issue, which was opened during September 15-19, had a price band at Rs 651-661 per share.
ICICI Lombard General Insurance is a joint venture between ICICI Bank and Canadian NRI Prem Watsa-promoted Fairfax Financial Holdings.
9:15 am Market Check: Equity benchmarks opened mildly higher amid volatility on Wednesday, ahead of expiry of September derivative contracts tomorrow.
The 30-share BSE Sensex was up 37.18 points at 31,636.94 and the 50-share NSE Nifty rose 5 points to 9,876.50.
About four shares advanced for every share falling on the BSE.
Sun Pharma lost 2 percent post AGM. Divis Labs fell 7 percent on USFDA observations for unit 2. Dr Reddy's Labs was also under pressure.
The Nifty Midcap was up 0.4 percent on positive breadth.
Edelweiss Financial, Shriram Transport, Indiabulls Ventures, RCF, FACT, Den Networks, Hathway Cable, Bajaj Hindusthan and Balrampur Chini gained 1-10 percent while DHFL and REC were under pressure.
