Market rundown by Mr. Vinod Nair, Head of Research of Geojit Financial Services
"Market extended gain on account of continued buying in banks in expectation of credit growth and negating the concern on premium valuation. Telecom stocks are gaining positive sentiment in view of attaining attractive competition after tariff revision by key players. Further, positive global cues and expectation of unchanged policy outcome from today’s FED meet is providing a better way to the domestic market."
3:40 PM Nifty PSU Bank index gained over 3%
3:38 PM Sectoral Trend
3:35 PM Top Sensex gainers and losers
3:33 PM Broader Markets
Broader markets underperformed the benchmark indices with BSE Midcap and BSE Smallcap index up 0.4% and 0.6% respectively
3:32 PM Markets at close
Benchmark indices ended the day at record highs on Wednesday after the index heavyweight Bharti Airtel hit its highest in nearly a decade post its September quarter numbers.
The S&P BSE Sensex ended at 33,600, up 387 points while the broader Nifty50 index settled at 10,440, up 105 points
Godrej Consumer Q2 net up 12% at Rs 362 crore on volume growth
FMCG major Godrej Consumer Products Ltd on Wednesday reported 12.56 per cent increase in its consolidated net profit to Rs 361.95 crore for the September quarter on higher income and volume growth.
It had posted net profit of Rs 321.54 crore during the July-September quarter of last fiscal, Godrej Consumer Products Ltd (GCPL) said in a regulatory filing.
Net sales (including excise duty) of the company during the quarter under review stood at Rs 2,496.93 crore as against Rs 2,436.64 crore in the year-ago period, up 2.47 per cent.
TVS Motor profit up 20%, co declares interim dividend
TVS Motor has reported a net profit of Rs 213.16 crore during the quarter ended September 30, 2017 as compared to Rs 177.39 crore, an increase of around 20.2 per cent.
Revenue excluding excise duty, GST grew to Rs 4,097.99 crore in the quarter ended September 2017 compared to Rs 3,465.69 crore in the quarter ended September 2016.
The two-wheeler major's margin was 8.7 per cent, which was higher than the market estimate due to improvement in realisation thanks to a better product mix.
Realty index hits 6-year high; Godrej Properties, Oberoi Realty at new high
Shares of real estate companies were on a roll with the Nifty Realty index hitting an over six-year high after a strong rally in Godrej Properties, Indiabulls Real Estate and DLF on the National Stock Exchange (NSE).
Godrej Properties, Indiabulls Real Estate and DLF from the Nifty Realty index were up in the range of 4% to 8% on the NSE. The non-index stocks such as Hubtown, Dilip Buildcon, Ansal Buildwell, Emami Infrastructure and Simplex Realty were up 5% to 9% on the BSE.
Fed to hold rates steady ahead of Trump's decision on new central bank head
The Federal Reserve is expected to keep interest rates unchanged on Wednesday as speculation swirls on who will be its next leader, but the US central bank will likely point to a firming economy as it edges closer to a possible rate rise next month.
The Fed has raised rates twice since January and currently forecasts one more hike by the end of the year as part of a tightening cycle that began in late 2015.
2:11 PM Market Check
One year of demonetisation: Credit card usage up, outstanding surges 39%
The use of credit cards has seen a sharp rise, with outstandings rising 38.7 per cent during the 12 months ended September 2017.
The total credit card outstandings — money spent by card holders and not repaid to the card company or bank — surged to Rs 59,900 crore at the end of September 2017, against Rs 43,200 crore in the same period last year, according to data released by the Reserve Bank of India (RBI) on Tuesday, shows a report in The Indian Express.
Card outstandings have shot up by 77.74 per cent in the past two years, from Rs 33,700 crore in September 2015. The rise in card usage was more visible in the past 12 months as the banking system saw a shortage of cash during the November-January period of fiscal 2016-17, after demonetisation.
Anil Ambani's RCom, GCX ratings unaffected by debt restructuring: Fitch
The ratings on Reliance Communications and its subsidiary Global Cloud Xchange will be "unaffected" by the debt restructuring plan outlined by the company, according to Fitch Ratings.
Re-rating will happen after clarity on the execution of the sale of its assets and the capital structure of the revamped entity, it added.
Earlier this week, billionaire Anil Ambani-led Reliance Communications said lenders will convert part of their debt to equity to gain 51 per cent control of the company.
Maruti October sales jump 9.5% on stellar show by utility vehicles
The country's largest carmaker Maruti Suzuki India (MSI) today reported a 9.5 per cent increase in total sales at 1,46,446 units in October as against 1,33,793 in the year-ago month.
Its domestic sales stood at 1,36,000 units, up 9.9 per cent from 1,23,764 in October last year, MSI said in a statement.
Sales of mini segment cars, including Alto and WagonR, witnessed a 4.2 per cent decline to 32,490 units during the month under review, from 33,929 in October 2016, the automaker said. Click for full report
WPIL zooms 20% on promoter stake buy
WPIL is locked in upper circuit of 20% at Rs 721, also its 52-week high on the BSE, after the one of its promoter increased stake in the company by nearly one percentage points through open market transaction. READ MORE
At 12:32 pm, the S&P BSE Sensex was trading at 33,608, up 395 points, while the broader Nifty50 was ruling at 10,439, up 104 points.
ICICI Bank hits 33-month high
ICICI Bank surged 6% to Rs 317, hitting 33-month high on the BSE in intra-day trade, set to join the elite league of corporate entities with a market value of over Rs 2 lakh crore on closing levels. The stock of private sector lender is trading at its highest level since March 3, 2015. READ FULL REPORT
Brent nears 2-year high
Brent crude oil prices were near two-year highs on Wednesday as OPEC has significantly improved compliance with its pledged supply cuts and Russia is also seen keeping to the deal.
Brent futures, the international benchmark for oil prices, were at $61.15 per barrel at 0504 GMT, up 21 cents, or 0.34 per cent, since their last close and near the $61.41 a barrel two-year high from intraday trading on Tuesday. Brent is up almost 38 per cent since its 2017-lows last June.
11:17 AM Sectoral trend: Nifty Realty, Nifty PSU Bank top gainers
11:06 AM HDFC Securities on ONGC
Currently, ONGC is benefitting from higher oil prices, increasing gas volumes from nominated fields, and lower operating expenses. Opex in 2QFY18 was 8% lower YoY, on account of lower rig rates, and reduction in transportation costs. We see no major trigger for ONGC’s standalone entity. There will be an increase in gas volumes from Daman, S1/Vashishta, C-26 in FY18, and also from B-127, Bassein, Daman in FY19. Oil volumes will broadly remain flat. ONGC remains a play on crude with ~76% revenue from oil and its derivatives.
The supply cut by OPEC and non-OPEC countries (excluding USA), will provide strength to crude prices. However, strong shale oil supplies from USA will provide a cap on crude prices. The domestic gas price plunged 50% from USD 5.05/mmbtu in 2HFY15 to USD 2.48/ mmbtu in 1HFY18. However, prices have bottomed out, and increased 16.5% to USD 2.89/mmbtu in 2HFY18. They are expected to increase till FY20. Higher gas realisations and increasing domestic volumes will drive profitability for ONGC. Our target price is Rs 209 per share (10x Sep-19E standalone + OVL EPS and Rs21 from investments). Maintain NEUTRAL
Factory activity barely grows in Oct
Factory activity barely expanded in October as new orders fell, a survey showed on Wednesday, as price rises following the introduction of a goods and services tax dragged on the economy and underscored dim growth prospects over coming months.
The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, fell to 50.3 last month from September’s 51.2, marking its third month above the 50-point threshold that separates growth from contraction.
Syndicate Bank surged 14% to Rs 94 on the BSE in early morning trade after the state-owned bank's assets quality improved sequentially in September 2017 quarter (Q2FY18). READ FULL REPORT
At 10:10 am, the S&P BSE Sensex was trading at 33,567, up 354 points, while the broader Nifty50 was ruling at 10,431, up 96 points.
9:53 AM Bharti Airtel hits highest in nearly a decade
Bharti Airtel rallied as much as 4.8% to its highest since Dec 2007 even as the country's largest telco said its net profit for the July-September quarter plunged by a whopping 77% from a year earlier, as it struggled with the fierce price war unleashed by Mukesh Ambani-led Reliance Jio.
Broader markets mirrored gains in the benchmarks with the BSE Midcap and the BSE Smallcap indices gaining 0.7% and 0.8%, respectively.
9:26 AM Sensex heatmap at open
Markets at open
At 9:20 am, the S&P BSE Sensex was trading at 33,419, up 206 points, while the broader Nifty50 was ruling at 10,394, up 58 points.
Stocks in focus
Hero MotoCorp, Tech Mahindra, Bharti Airtel, Tata Steel, Maruti Suzuki, HDFC Bank etc
India jumps 30 spots in ease of doing business rankings
India has for the first time broken into the club of the 100 nations easiest to conduct business in, driven by ease of paying taxes, resolving the insolvency problem, access to credit, and protection of minority investors.
The World Bank’s ‘Doing Business 2018: Reforming to Create Jobs’ report, released on Tuesday, showed India's rank in ease of doing business jumped 30 places to 100 among 190 countries. READ MORE
BUY AMARA RAJA BATTERIES
CMP: Rs 699.60
TARGET: Rs 770
STOP LOSS: Rs 670
Nifty outlook by HDFC Securities
Positional setup of Nifty is still bullish with higher tops and higher bottoms. Nifty has surpassed the previous top resistance of 10,251 and registered new all-time high at 10,384 recently. There is no sign of bearish trend reversal seen as of yet on the short term charts of Nifty. READ MORE
Devangshu Datta on Nifty, Bank Nifty, ONGC, NTPC and Hindalco
8:55 AM Asian markets
Asian shares hit a 10-year high on Wednesday on the back of solid economic growth, while oil prices were on a bull run on hopes of an extension of output cuts by major oil producers.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%, while Japan's Nikkei gained over 1%. China's Shanghai Composite and Hong Kong's Hang Seng indices were up 0.3% and 0.6%, respectively.
At 8:50, SGX Nifty was trading at 10,410, up 31 points or 0.30%, indicating higher opening for the markets.
8:51 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Wed, November 01 2017. 15:30 IST