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Sensex, Nifty under pressure; banks, metals, cap goods drag

10:00

The News International Team

11:00am NSE F&O additions

Shares of Eicher Motors, Motherson Sumi Systems, Mindtree, SKS Microfinance and TVS Motor Company gained 0.5-3.5 percent on additions in NSE F&O segment.

“Based on the stock selection criteria as prescribed by SEBI circular and approval received from SEBI, the futures and options contracts on above five additional securities would be available for trading w.e.f. September 10, 2014,” said the National Stock Exchange of India (NSE) in its filing.

Currently, 135 scrips trade in the NSE F&O segment.

10:30am Prestige Estates on buyers’ radar

Shares of Prestige Estates Projects gained more than 2 percent on hopes of strong earnings per share growth going ahead. Bank of America Merrill Lynch (BoAML) sees room for upside in the stock triggered by further launches/pre-sales, execution/EPS growth, pick-up in commercial leasing and improvement in macro.

The brokerage feels it is a good time to buy the stock, which is currently trading at its average P/NAV of 0.7 compared to its recent high of 0.9 P/NAV.

It is one of the top picks, says BoAML, which expects earnings per share of the company to nearly double from Rs 9 in FY14 to Rs 17 in FY17E. According to the report, the company will beat its FY15 pre-sales target of Rs 5,000 crore.

Prestige’s pre-sales in April-June quarter of current financial year 2014-15 stood at Rs 1,410 crore. Other two reasons that convinced BoAML to say buy the stock are unabated execution providing comfort towards collections (cash flows) and revenues (P&L); and aAnnuity income of Rs 4,200 crore in FY16 provides NAV stability.

10:00am Equity benchmarks remained under pressure with the Sensex falling 81.07 points to 27238.78 and the Nifty declining 27.45 points to 8146.45 weighed down by banks, capital goods and metals stocks.

Bharat Iyer, JPMorgan says comfortable global liquidity, lower global commodity prices and a historic electoral verdict have all been supportive for Indian equities this year so far.

However, elevated expectations are the main risk now as recent correction in some of the investment-linked sectors can be linked to that, he adds.

Hindalco Industries and Jindal Steel slipped around a percent ahead of Supreme Court hearing on coal block allocation case today afternoon.

Shares of Infosys, ICICI Bank, Larsen and Toubro, ONGC, HDFC, Reliance Industries, Sun Pharma, Axis Bank and Tata Steel lost 0.3-1 percent while Tata Motors, Bharti Airtel and Cipla bucked the trend, up 1-1.5 percent. ITC, Coal India, M&M and HUL gained marginally.

Advancing shares outnumbered declining ones by a ratio of 1154 to 988 on the Bombay Stock Exchange.

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