3:41 PM Top Sensex gainers and losers
3:35 PM Broader Markets
In broader markets, BSE Midcap index gained 0.2% and BSE Smallcap index was up 0.5%
3:33 PM Markets at close
The benchmark indices settled the day higher ahead of Infosys earnings and October F&O expiry with Nifty50 ending above 10,200.
The S&P BSE Sensex ended at 32,607, up 100 points and the broader Nifty50 ended at 10,207, up 22 points
Panacea Biotec surged 15% to Rs 276, also its 52-week high on the BSE, after the company announced the launch of Prasugrel tablets in US market.
The company said that its first-to-file Abbreviated. New Drug Application (ANDA) of Prasugrel 5mg and 10mg tablets have been approved by the United States Food & Drug Administration (USFDA).
3:07 PM Asian Paints Q2
Consolidated PAT at Rs 578 crore
Consolidated revenue at Rs 4,274 crore
3:00 PM Market Check at 3
2:50 PM Buzzing Stock
Automotive Stampings & Assemblies fell 2.75% to Rs 86.70 at 13:58 IST on BSE after the company reported net loss of Rs 14.24 crore in Q2 September 2017, higher than net loss of Rs 4.44 crore in Q2 September 2016.
2:36 PM Top Sensex gainers and losers
2:17 PM IT sector falls before Infosys results
State-owned General Insurance Corporation of India will make stock market debut tomorrow after having concluded the Rs 11,370-crore initial public offer (IPO).
GIC Re's IPO was oversubscribed 1.38 times during October 11-13.
The reinsurance company had fixed the price band at Rs 855-912 for its IPO.
1:45 PM BUZZING STOCK
Zee Entertainment Enterprises rose 4.79% to Rs 516.45 at 12:59 IST on BSE after consolidated net profit jumped 148% to Rs 591.20 crore on 6.7% decline in operating revenue to Rs 1582.10 crore in Q2 2017 (YoY)
European markets opened slightly lower, as investors continued to monitor the latest corporate earnings reports and kept a close eye on Spain's constitutional crisis.
The pan-European Stoxx 600 edged 0.1% lower shortly after the opening bell with almost all sectors and major bourses in negative territory.
PSBs in focus
Shares of public sector banks (PSBs) were in focus with Andhra Bank, Syndicate Bank and Punjab National Bank (PNB) rallying over 5% each on the National Stock Exchange (NSE) amid reports that the government may announce capital infusion plan for the state-run banks.
State Bank of India (SBI), Bank of Baroda, Bank of India, Central Bank of India, Oriental Bank of Commerce, IDBI Bank and Union Bank of India were up in the range of 3% to 4%. Real full report here
1:04 PM Markets at 1pm
12:47 PM Economy watch
The back-ended redemption of state Development Loans (SDLs) and the possible funding of crop loan waivers by some states in H2 FY2018, could result in a rise in the gross market borrowings of the state governments to Rs. 3.0-3.2 lakh crore in H2 FY2018 from Rs. 1.8 lakh crore in H1 FY2018, in ICRA’s view. As a result, total SDL borrowings in FY2018 could be in the range of Rs. 4.8–5.0 lakh crore, higher than ICRA’s initial baseline estimate of Rs. 4.5 lakh crore
12:46 PM HDFC Bank Q2
Cost to income ratio at 42.6%
12:45 PM HDFC Bank Q2
Net NPA at 0.43% vs 0.44% (QoQ)
12:44 PM Earnings Impact: HDFC Bank continued trading flat post Q2 numbers
12:41 PM Earnings: HDFC Bank
Gross NPA at 1.26% vs 1.24% (QoQ)
12:41 PM Earnings: HDFC Bank
PAT at Rs 4,150 crore: Reports
After Aircel deal collapse, RCom's merger with Sistema Shyam gets DoT nod
The Department of Telecom (DoT) has cleared the merger of Sistema Shyam Teleservices with Reliance Communications, a deal that will reduce the number of mobile operators in the country to ten.
"Reliance Communications Limited (RCOM) has received the Department of Telecommunication's (DoT) approval for the demerger of the wireless business of Sistema Shyam Teleservices Limited (SSTL) into RCom," the Anil-Ambani led telecom firm said in a statement.
According to a source, the deal was cleared by the DoT on October 20. READ MORE
Media house Zee Entertainment Enterprises' consolidated profit grew by a whopping 147.8 percent year-on-year to Rs 590.80 crore, largely led by proceeds from sale of sports broadcasting business.
The company has earned an exceptional gain of Rs 134.61 crore as the Group has concluded closure of its second phase of transaction for disposal of sports broadcasting business to Sony Pictures Networks India.
Havells India falls 6% post September-quarter earnings
Havells India dipped 6% to Rs 512 on the BSE in intra-day trade in otherwise firm market after the company reported single digit growth in standalone net revenue (excluding Lloyd) at Rs 1,508 crore in September quarter (Q2FY18). It had net revenue of Rs 1,452 crore in Q2FY17.
Net profit of the company during the quarter under review grew 9% to Rs 159 crore against Rs 146 crore in the corresponding quarter of previous fiscal. READ MORE
12:00 PM Markets at 12
11:53 AM Sectoral trend
Interview of the day
It is a good market for bottom-up stock picking: Jigar Shah
With the mid-and small-caps outperforming the frontline indices thus far in calendar year 2017 (CY17), JIGAR SHAH, chief executive officer, Maybank Kim Eng Securities tells Puneet Wadhwa that they will now need earnings delivery to sustain at the current levels. READ FULL INTERVIEW HERE
BSE Smallcap index hits new high; up 50% from November 2016 low
Shares of smallcap companies continued their upward movement with the S&P BSE Smallcap index hitting a new high of 17,240 on the BSE in intra-day on Tuesday.
The index has rallied 50% from its 52-week low of 11,463 touched on November 22, 2016 in intra-day trade.
As many as 174 stocks from the S&P BSE Smallcap index have become multi-baggers and rallied over 100% since November 22, 2016. Of these 47 stocks zoomed more than 200% each. READ MORE
From strategy to new CEO names: 5 things to watch for in Infosys Q2 results
Infosys, India’s second-largest IT services firm, is widely expected to cut its growth forecast for the current financial year on account of a competitive business environment. The company's revenues are likely to grow between 1.5 and 2.5 per cent in constant currency terms as estimated by four brokerage firms considering wage hike impact.
The company will announce growth strategies after co-founder Nandan Nilekani coming at the helm. Infosys management commentary will be keenly watched on areas such as probable names of the next chief executive officer, digitisation roadmap and deal wins in its largest market in the US after the "abrupt" exit of first non-founder CEO Vishal Sikka in August.
for 5 things to watch for in Infosys Q2 results
10:44 AM BUZZING STOCK
S Chand & Company rose 6.26% to Rs 483.60 on BSE after HDFC Mutual Fund bought 2.96 lakh shares, or 0.85% equity, of the company at Rs 455 each on NSE yesterday.
Centrum Research on Tata Sponge
Target Price: Rs 1,125
CMP: Rs 935
We maintain our Buy rating on Tata Sponge (TSIL) and revise our TP to Rs1125 as spreads have continued to improve and outlook on the sustenance of the same is strong which gives confidence of smart recovery in earnings over FY18-19E.
Q2 earnings were strong YoY led by better pricing and company remains on track to achieve its full year volume targets. TSIL had earlier indicated its plans to foray into steelmaking through the brownfield route but we await final details on the size of the first phase and investments therein.
Stock trades at FY19E EV/EBITDA of 3.7x and a five year AOCF/EV yield of 9.3% which keeps risk-reward favourable.
ONGC hits over four-month high; stock up 3% on heavy volumes
Oil and Natural Gas Corporation (ONGC) gained 3% to hit over four-month high of Rs 177 on the BSE in early morning trade on heavy volumes. The stock is trading at its highest level since June 5, 2017.
In the first 10 minutes of trade, a combined 2.62 million shares have already changed hands on the counter, as against an average 4.8 million shares that were traded daily in past two weeks on the BSE and NSE. READ MORE
Edelweiss on Indiabulls Housing Finance
Indiabulls Housing Finance’s (IHFL) Q2FY18 performance was characterised by consistent strong operating performance, in line with guidance. Key highlights: a) growth momentum sustained (AUM >30% YoY) with tilt in favour of core home book (58% versus ~54% a year ago); and b) despite this loan tilt, spreads sustained at 3.26% given funding cost benefit (move towards bond borrowing); recent rating upgrade by ICRA will enhance this funding cost benefit.
Earnings were further bolstered by rising proportion of e-home loans—~24% of incremental home loans, benefiting cost/income ratio. IHFL maintained growth guidance of 20-25% across financial parameters. We believe, an optimal product strategy with stringent risk mitigants, stable franchise and high liquidity will sustain superior return ratios—RoA and RoE of >3% and >27%. Maintain ‘BUY
Edelweiss on Havells India
Havells India (Havells) posted better PAT, despite the top-line miss, led by improved OPM across businesses. Key highlights: a) 12-13% price hike in cables & wires, reversal of promotional schemes post GST/DeMon and better profitability in Lloyd led to 8-9% EBIDTA beat; b) Re-stocking was poor as dealers deferred buying leading to 12-14% top-line miss; and c) While management expects low double digit revenue growth in FY18, they were more confident about profitability, especially in Lloyd business.
While we trim our FY18/19E top-line by 8.5/4% to reflect channel deferments, impact on PAT is contained at 6/0.5%. Despite near-term growth challenges, we believe Havells is the best play on rising penetration/premiumisation in durables/electrical space and estimate 33% earnings CAGR over next 2 years. We maintain ‘BUY’ with TP of INR564 (with target PE at 25% premium to sector PE multiple at 30x)
10:00 AM Market check at 10 am
Top MF equity schemes struggle to beat benchmarks
Pressure to perform amid a sharp rally in the market and high monthly inflow is increasingly becoming evident on mutual fund (MF) schemes' returns. A majority of the most popular equity schemes have failed to beat their respective benchmarks.
The performance of most of these, relative to their benchmarks, isn’t encouraging on a year-to-date, one-year or three-year time period. READ MORE
Insolvency: Tatas, Ruias submit bids for debt-laden Essar Steel
Tata Steel and the Ruias themselves have put in bids for debt-laden Essar Steel after the company was put up for sale under the Insolvency and Bankruptcy Code (IBC). Sajjan Jindal-led JSW Steel, aggressive in bidding for Monnet Ispat’s and Bhushan Steel’s businesses, is said to have skipped submitting a resolution plan for Essar Steel.
“The IBC allows promoters to bid for their company. In a number of other cases as well, promoters have been showing an interest in their own companies,” said a person aware of the proceedings. READ MORE
Interview of the day
Valuations appear stretched, could improve in future: Ravi Gopalakrishnan
The market appears to be getting ahead of its fundamentals, as structural improvements in the economy have not translated into earnings growth in the past two to three years, says Ravi Gopalakrishnan, head-equities, Canara Robeco Mutual Fund. He adds earnings growth will pick up once the benefits of reform initiatives accrue. READ MORE
Ravi Gopalakrishnan, Head of equities, Canara Robeco Mutual Fund
9:27 AM Infosys trades flat ahead of Q2 results
9:23 AM Metal index gained 0.5%
9:21 AM Sectoral trend
9:20 AM Top Sensex gainers and losers
9:18 AM Broader Markets
Broader markets were trading in line with the frontline indices with BSE Midcap and BSE Smallcap indices up 0.2% and 0.3%
9:17 AM Markets open
At 9:17 am the S&P BSE Sensex was trading at 32,561, up 54 points while the broader Nifty50 index was ruling at 10,199, up 19 points
Sebi disposes of proceedings against NDTV promoters
Capital markets regulator Sebi on Monday disposed of proceedings against Prannoy Roy, Radhika Roy and RRPR Holdings Pvt Ltd in a case related to alleged delay in disclosure about their aggregate shareholding in NDTV.
The three are among the promoters of NDTV, and the case relates to their alleged delay in disclosing their aggregate shareholding and voting rights in the company after the end of the 2011-12 fiscal year.
Under Sebi norms, promoter entities are required to make disclosures regarding the aggregate shareholding and voting rights as of March 31 within seven working days from the end of each financial year to stock exchanges concerned. READ MORE
Southeast Asian oil demand to keep growing until at least 2040 - IEA
Southeast Asian demand for oil will keep growing until at least 2040 as emerging nations there rely on the fossil fuel to transport their rapidly growing populations by road, the International Energy Agency said on Tuesday.
Oil usage in the region will expand to around 6.6 million barrels per day by 2040 from 4.7 million bpd now, with the number of road vehicles increasing by two-thirds to around 62 million, the agency said in a report launched at the Singapore International Energy Week.
Equinomics Research recommends Indian Energy Exchange
IEX is well positioned to gain from fast growing energy trading segment as proportion of energy traded over power exchanges continues to increase from 23.8% in FY2013 to 34.5% in FY2017. IEX dominates the market with its share in total volume traded through exchanges in the last five years at an average of over 93.5%. At the current market price, IEX is priced at 43.5x its FY2017 Diluted EPS. This is on the back of cash rich balance sheet (~Rs.500 crore), high profit margins, negative working capital cycle and superior return profile. Hence, we suggest our clients, with long-term investment perspective, to accumulate the stock on every major decline.
NSE bans 8 companies from trade
The derivative contracts of BEML, DHFL, HDIL, Indiabulls Real Estate, Infibeam, Jaiprakash Associates, JSW Energy and Reliance Capital have crossed 95 percent of the market-wide position limit and are currently in the ban period.
8:58 AM Top Technical Calls from Prabhudas Lilladher:
BUY RALLIS INDIA
CMP: Rs 239.45
TARGET: Rs 260
STOP LOSS: Rs 228
CMP: Rs 142.55
TARGET: Rs 155
STOP LOSS: Rs 134
Click here for rationale
Today's Picks: 24 October, 2017
Current: 24,088 (fut: 24,166)
Stop-long positions at 24,050. Stop-short positions at 24,275. Big moves could go till 24,475. 23,850. The financial index is more bullish than the Nifty.
Current price: Rs 497.5
Target price: Rs 507
Keep a stop at Rs 492 and go long. Add to the position between Rs 503 and Rs 505. Book profits at Rs 507.
Nifty outlook by Prabhudas Lilladher:
Nifty though has its daily trend down, it still is sustaining above its crucial support of 10,120 levels. Bank Nifty too has its near term support at 23,900, hence a bounce from these levels cannot be ruled out. The support for the day is seen at 10,130 while resistance is seen at 10,220.
IEX recoups losses to end 1.5% down on trading debut
Shares of Indian Energy Exchange (IEX) ended 1.5 per cent lower than its issue price during its stock market debut on Monday. The stock had dropped as much as nine per cent, but managed to recoup most of the losses.
The stock ended at Rs 1,625 compared to the initial public offering (IPO) price of Rs 1,650. It hit a low of Rs 1,500 and a high of Rs 1,660 on the National Stock Exchange (NSE), where Rs 540 crore worth of shares were traded. IEX is India’s largest power trading exchange. READ MORE
After a truncated trading week, weakness was evident in Nifty in the early part of the day’s trade. However it quickly recovered some of the lost ground in the second half and ended with marginal gains. Weakness in banks has kept a check on the benchmark index’s advance. Earnings season so far has been a mixed bag. Major disappointments have emerged from banks with fresh recognitions arising from power, agriculture, SMEs and retail sector.
Market-wide rollovers on the D-3 stands at 19% compared to the average rollovers of 22% (last three series). Average roll levels (cost to long rollers) across the stock futures were at ~54-56bps. Nifty futures rollover stands at 17% as compared to the average rollovers of 22% of last three series.
Nifty futures OI is at ~29.57mn shares as against ~24.34mn shares on D-3 of the last expiry. Nifty futures roll cost (cost to long rollers) were ~46-48bps.
Among the sectors, IT (28%), Telecom (23%) and Banking (21%) have witnessed reasonable rollovers compared to the other sectors on the D-3. High rollovers were seen in BIOS (37%), INFO (30%) and AXSB (32%).
(Source: Edelweiss Research)
Mahindra Logistics sets IPO price band
Mahindra Logistics, the subsidiary of Mahindra and Mahindra, has fixed the price band at Rs 425-429 per share for its initial public offering that is scheduled to open on October 31. The discount of Rs 42 per share will be offered to its eligible employees, the company said in its filing. READ MORE
Reliance Nippon AMC IPO: Should you invest?
Sticking to its schedule, Reliance Capital is on track to list its asset management arm — Reliance Nippon Life Asset Management (RNLAM). The issue, which would open on Wednesday and is the first one by an asset management company (AMC), has many positives such as a diversified asset base with strong investment track record. These attributes have helped RNLAM grow its business profitably READ MORE HERE
Infosys Q2 preview: What Dalal Street wishes to hear from Nandan Nilekani
Analysts, at large, believe that more than the Q2 numbers, the management commentary will remain in focus as an update on the company's strategic preferences is crucial at this juncture. CLICK FOR MORE
Infosys, HDFC Bank, Asian Paints, Ambuja Cements, Zee Entertainment, Can Homes, ABB, Rallis India, Raymond and ICICI Prudential are some of the companies scheduled to announce quarterly results on Tuesday.
Infosys likely to name next CEO today
Infosys is likely to name its next chief executive officer on Tuesday. Finding a CEO was among the key tasks taken up by co-founder and Chairman Nandan Nilekani when he took charge in August.
Among the probable candidates for the post are B G Srinivas and Ashok Vemuri, two former executives who had quit before co-founder N R Narayana Murthy hired Vishal Sikka in 2014. Two people familiar with the development said there was a strong case for Srinivas, group managing director, PCCW Group of Hong Kong, who left Infosys as president, global markets, in 2014. U B Pravin Rao, interim MD and CEO, may be moved to his earlier role as chief operating officer. A company spokesperson dismissed it as speculative. CLICK HERE FOR THE FULL STORY
The Nifty futures on the Singaporean stock exchange were trading lower by around 14 points at 10186, a fall of around 0.14% indicating a flat opening for the Indian markets
Asian shares hover near recent highs
Asian shares held within striking distance of recent decade highs on Tuesday even as Wall Street fell from record levels, while currencies kept to narrow ranges ahead of key economic events.
Investors are closely watching China and the 19th Communist Party Congress, which winds up on Tuesday and at which President Xi Jinping is expected to release the composition of the Standing Committee - the apex of power in the country.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.1% firmer at 549.71 points, not far from a 10-year high of 554.63 set last week.
Australian shares also edged higher and back toward a 5-1/2 month peak touched on Monday, while Japan's Nikkei fell 0.2% from a 21-year high.
US markets end lower
US stocks closed lower on Monday after starting the day at record highs, weighed down by the tech and industrial sectors.
The Dow Jones Industrial Average fell 54.67 points, or 0.23%, to end at 23,273.96, the S&P 500 lost 10.23 points, or 0.40%, to 2,564.98 and the Nasdaq Composite dropped 42.23 points, or 0.64%, to 6,586.83.
A street sign for Wall Street is seen outside the New York Stock Exchange in Manhattan, New York City
8:36 AM Good morning and welcome to market's live blog. Catch all the live market action here.
First Published: Tue, October 24 2017. 15:30 IST