Market rundown by Mr. Anand James, Chief Market Strategist of Geojit Financial Services
"Resurgence in banks continued edging indices higher, even as new Fed chair stoked optimism that on - going FII buying in equities could continue. Market breadth was, however, relatively flat, as investors searched for more domestic cues, and could look for clues from pre - budget talks. "
3:46 PM Top Sectoral loser: Nifty Pharma
3:44 PM Nifty Chart for the day
3:42 PM Sectoral trend
3:41 PM Nifty PSU Bank index extends gains
3:40 PM Top Sensex gainers and losers
3:38 PM Broader Markets
In broader markets, the BSE Midcap index fell 0.07% while BSE Smallcap index gained 0.5%
Markets at close
Benchmark indices ended at record highs on Friday as Public sector banks continued their rally. The indices hit fresh highs at intra-day deals too with Nifty50 climbing to 10,461 and Sensex touching 33,726 levels.
The S&P BSE index settled at 33,685, up 112 points while the Nifty50 index ended at 10,452, up 28 points
Reliance Nippon AMC to make stock market debut on Nov 6
Reliance Nippon Life Asset Management (RNAM), which successfully concluded its initial public offer (IPO) last week, will make its stock market debut on Monday.
The company's IPO was oversubscribed 81.54 times during October 25-27, data available with the NSE showed.
The Rs 1,540-crore offering saw healthy demand in all three investor categories. READ MORE
Tata Power Q2 profit falls 44% at Rs 269 cr on lower income
Tata Power Co Ltd reported an about 44 per cent slump in quarterly profit, hurt by lower income from its power generation business, missing analysts' forecasts.
Profit came in at Rs 269 crore ($41.63 million) in the quarter ended Sept. 30, compared with a profit of Rs 476 crore a year earlier, the company said on Friday.
Amtek Auto zooms 20% as Bharat Forge participates in acquisition process
Shares of Amtek Group companies – Amtek Auto, Metalyst Forgings and Castex Technologies – have locked in their respective upper limit of circuit breaker on the BSE after Bharat Forge said that it has participated in the process of acquiring Amtek Auto.
Ametk Auto was locked in upper circuit of 20% at Rs 29.70 on the BSE with only buyers seeing on the counter. Till 01:52 PM; a combined 12.63 million shares changed hands and there were pending buy orders for 4.88 million shares on the NSE and BSE. READ MORE
2:30 PM Market Check
Punjab National Bank up 8% as Q2 profit beats estimates
Punjab National Bank (PNB) moved higher by 8% to Rs 212 on the BSE in noon deals after the bank reported a better than expected net profit at Rs 561 crore in September quarter (Q2FY18). Analysts on an average expected profit of Rs 298 crore for the quarter. The state-owned bank had profit of Rs 549 crore in a year ago quarter.
The assets quality of the bank improved sequentially as well as yearly with gross NPAs as a percentage of advances stood at 12.31% and net NPAs at 8.44 per cent as of end-September 2017. The gross NPAs and net NPAs were at 13.66% and 8.67%, respectively, in Q1FY18. It was 13.63% and 9.10%, respectively, in Q2FY17. READ MORE
Ujjivan Financial surges 10% post September quarter results
Ujjivan Financial Services soared 10% to Rs 377 on the BSE in intra-day trade after the company announced that its consolidated net loss declined to Rs 11.95 crore in September quarter (Q2FY18) from Rs 74.94 crore in June quarter (Q1FY18).
“The net loss during the quarter declined on account of moderate growth in revenue and consequently higher net interest income (interest earned minus interest expended) and lower credit costs in Q2FY18,” Ujjivan Financial Services said in a statement. READ MORE
SAIL nears 5-year high on expectation of good Q2 results; up 60% in 1-month
Steel Authority of India (SAIL) surged 7% to Rs 85.70 in intra-day trade, extending its 36% rally of the past two weeks on the BSE, ahead of its September (Q2FY18) results next week. The stock was trading at its highest level since December 4, 2014.
In the past one month, the stock has outperformed the market by surging 60% as compared to just 7% rise in the S&P BSE Sensex. READ MORE
Punjab National Bank Q2 profit up 2%, beats estimates
India's state-run Punjab National Bank, the country's fourth-biggest lender by assets, reported a 2 per cent rise in second-quarter profit, beating forecasts.
Net profit rose to Rs 561 crore for the quarter ended September 30 from Rs 549 crore a year earlier, the state-run bank said on Friday.
Torrent to buy Unichem's domestic biz for Rs 3,500 cr
Ahmedabad-headquartered pharmaceutical giant Torrent Pharmaceuticals is likely to announce the acquisition of Unichem Laboratories' domestic business for a consideration of about Rs 3,500 crore after market hours on Friday. READ MORE
12:54 PM Markets checkGainers
PMI Services activity grows for 2nd straight month in October
Services sector activity in India expanded for the second consecutive month in October, driven up by rising new orders — the fastest pace since June — amid positive demand conditions, says a monthly survey. READ MORE
Bitcoin is very definition of a bubble: Credit Suisse CEO
The speculation around bitcoin is the “very definition of a bubble,” Credit Suisse Group AG Chief Executive Officer Tidjane Thiam said as the currency exceeded $7,000 for the first time. READ MORE
Shares of cable service providers such as Hathway Cable & Datacom Limited (Hathway), Den Networks, Siti Networks and Dish TV India rallied by up to 20% after Hathway reported good set of numbers for the quarter ending September 2017 (Q2FY18). READ FULL REPORT
About Trump's 'safe' choice Jerome Powell and US Fed
Markets breathed a sigh of relief after President Donald Trump named Jerome Powell his pick to be the next chair of the Federal Reserve. If confirmed, Powell – considered a “safe” choice – would take over from current Chair Janet Yellen in February, becoming one of the world’s most powerful people. So what’s the big deal? Economist Greg Wright explains why who leads the US central bank matters to us all. READ FULL REPORT
Infy, TCS, Cognizant are downsizing
India’s information technology (IT) industry could significantly fall short of its targeted generation of 130,000-150,000 new jobs this year as large companies such as Cognizant, Infosys, and Tech Mahindra (TechM) shed people to embrace automation and focus on productivity of the workforce. READ FULL REPORT
11:05 AM Markets check
At 11:00 am, the S&P BSE Sensex was trading at 33,647, up 74 points, while the broader Nifty50 was ruling at 10,444, up 20 points.
10:46 AM Bharti Airtel top gainer
Bharti Airtel was up 4% to Rs 565 on the BSE in early morning trade after about 185 million equity shares of the company exchanged hands on the counter. READ MORE
HEG hits new high on stellar Q2 performance
HEG was locked in upper circuit of 5% at Rs 1,841, also its new high on the BSE, after the company reported stellar performance in September 2017 (Q2FY18) with net profit Rs 114 crore. The company, a leading graphite electrode manufacturer in India, had recorded a net loss of Rs 14 crore in a year ago quarter. It had posted loss of Rs 50 crore in the entire previous financial year 2016-17. READ MORE
Edelweiss Securities on Hindalco
We are upbeat on sustained high spreads and EBITDA margin in excess of 10%. We see Novelis generating quarterly EBITDA of $270-300 mn through to FY19E on improved demand outlook and ongoing cost efficiencies. This would not only aid healthy free cash generation of $400-450 mn per year, but also accelerate deleveraging. Maintain ‘BUY/SO’ with a TP of Rs 325, implying ~7.0x FY19E EBITDA.
9:53 AM Buzzing stock
Shriram City Union Finance shed over 3% to Rs2,245 after the company posted a decline of 3% in its net profit at Rs 198.30 crore for second quarter ended September of this fiscal. The company's net profit stood at Rs 204.49 crore in the July-September quarter of the previous fiscal.
9:26 AM Sectoral trend: All sectoroal indices were trading in green
9:22 AM Sensex heatmap at open
9:19 AM Markets at open
At 9:18 am, the S&P BSE Sensex was trading at 33,659, up 86 points, while the broader Nifty50 was ruling at 10,450, up 26 points.
Interesting trading opportunities in PSBs
The recent surge in public sector banks (PSBs) has created a momentum play where they look more attractive to traders. The differences in valuations between private banks and PSBs have reduced. Most PSBs trade at low valuations, while many private banks trade at high valuations. That differential could reduce. In most sectors, analysts examine the price-earnings (PE) ratio as a basic measure. But, in the banking sector, price-book value (P/BV) ratio is more useful. READ FULL ANALYSIS
Derivative strategy on Jain Irrigation
Buy Jain Irrigation November 110 call at Rs 4.70
Stop loss: Rs 3
Target: Rs 8
BUY LIC HOUSING FINANCE
CMP: Rs 605.55
TARGET: Rs 670
STOP LOSS: Rs 585
8:55 AM Wall Street on Thursday
Wall Street’s Dow industrials climbed to a record high on Thursday while losses in Facebook kept the S&P 500 and the Nasdaq in check as investors assessed the long-awaited tax cut plan unveiled by US President Donald Trump’s fellow Republicans.
The Dow Jones Industrial Average rose 81.25 points, or 0.35% to 23,516.26, the S&P 500 gained 0.49 points, or 0.02% to 2,579.85 and the Nasdaq Composite dropped 1.59 points, or 0.02% to 6,714.94.
Asian shares took a breather on Friday as investors gave a guarded reception to Republican plans for massive US tax cuts, while welcoming the appointment of a centrist at the helm of the Federal Reserve.
A holiday in Japan kept volumes light, while investors observed the usual caution ahead of the US payrolls report which is expected to show a big bounce back from September’s hurricane-hit result.
MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.15% to be just a whisker from its highest since late 2007.
Australia’s main index firmed 0.6%, while China’s blue chips were a fraction softer.
At 8:46 am, SGX Nifty was trading at 10,469, up 14 points ot 0.14%.
8:48 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Fri, November 03 2017. 15:30 IST