Vinod Nair, Head of Research, Geojit Financial Services
Market went through some profit-booking after touching the all time high. But the gradual change in FII inflows from negative to positive led by domestic cues will keep the India growth story intact. Pharma stocks emerged as a dark horse due to attractive valuations and expectation of faster USFDA approvals for plants. On the global front, Fed kept the rate on hold as expected, while rising optimism on economic development is adding more weights to a hike in the month of December which has largely been factored in the domestic market.
Market wrap-up by Nikhil Kamath, Co-Founder and Head of Trading, Zerodha
Markets closed the session flat for the day; pharma stocks were the best performers for the session, Divi's Labs was the best performer, notching up gains of 17% for the session. Sun Pharma, Lupin, and Aurobindo Pharma were the best performers at the index level. Markets corrected slightly at the opening and then continued to trade rangebound in a very small range throughout the session.
Domestic institutions continue to remain flush with liquidity whereas FIIs continue selling. Overall, we are yet to see the level of bullishness and complacency which could signal the end of the inherent bull trend. This rally could have further legs in the short term; we would still not advocate taking fresh longs at this juncture.
3:42 PM Sensex heatmap at close
3:38 PM Market breadth
The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1,420 shares fell and 1,337 shares rose. A total of 142 shares were unchanged.
3:37 PM Broader markets underperform
The BSE Midcap and the BSE Smallcap indices settled 0.4% lower each.
3:36 PM Markets at close
The S&P BSE Sensex ended at 33,573, down 27 points, while the broader Nifty50 was ruling at 10,423, down 16 points.
3:29 PM Sectoral trend
Bitcoin crosses $7000
Bitcoin reached yet another all-time high, surpassing $7,000 for the first time ever, boosted by bets the cryptocurrency could enter the financial mainstream after the world's largest derivatives exchange operator said on Tuesday it would launch bitcoin futures.
JSW Steel: Firm profit outlook will help sustain sentiment
JSW Steel may have seen a relatively soft September quarter but its prospects remain firm in light of the improving demand environment, as well as profitability and firm prices. READ FULL ANALYSIS
3:03 PM HDFC Life IPO: From anchor investment to market share, all you need to know
HDFC Standard Life Insurance, one of the top three private life insurers in profitability, will open its Rs 8,700-crore initial public offering (IPO) next Tuesday and close it on Thursday. This will be the fourth IPO of an HDFC arm.
"The issue has been attractively priced for retail investors. I would say investors should not look for the first day pop and invest in the company with a long-term horizon for good returns,” said HDFC Life MD & CEO Amitabh Chaudhry in the company’s IPO roadshow in New Delhi on Wednesday. HDFC Life will get listed on stock exchanges on November 17.
SPML Infra zooms 20%
SPML Infra was locked in upper circuit of 20% at Rs 161 on the BSE after the company announced the successful implementation of Scheme for Sustainable Structuring of Stressed Assets (S4A). READ MORE
LIC insurance for New India Assurance's mega IPO
Life Insurance Corporation of India (LIC) has again acted as a white knight, to ensure success of The New India Assurance Company’s Rs 9,600-crore Initial Public Offering (IPO), through which the Centre is eyeing Rs 7,680 crore. New India garnered full subscription on Wednesday for its IPO, the country’s fourth largest. It was the issue’s first day and got bids for 125 million shares, as against 120 mn on offer. READ FULL REPORT
8K Miles Software Services rallied 11% to Rs 800 in intra-day trade, extending its 29% rally of the last three sessions on the BSE, in an otherwise subdued market. READ MORE
1:43 PM Sensex heatmap in noon deals
Bank recapitalisation is a fillip for the markets
The announcement of the bank recapitalisation plan has imparted new momentum to the stock market rally. Importantly, it seems to have led to a change in the attitude of foreign portfolio investors (FPIs). They were net sellers in equities to the tune of Rs 5,279 crore between April and September, and sold Rs 6,500 crore in October before bank recapitalisation was announced on October 24. But the very next day, they pumped in a mammoth Rs 6,800 crore. READ MORE
1:05 PM Market Check
Bajaj Auto today reported 7.38% increase in total sales in October at 3,82,464 units as against 3,56,168 units in the same month last year.
Total domestic sales were at 2,47,210 units last month as compared to 2,38,781 units in October 2016, a growth of 3.53%, Bajaj Auto said.
IT sector seeing disruption, stocks underperforming: Should you go contra?
Another quarter has gone by and technology majors have again failed to live up to the expectations – a couple of them have even lowered guidance for seasonally weak December and March quarters. A mere 4% rise in the Nifty IT index year-to-date also reflects the challenges and disruptions the domestic information technology (IT) firms have been facing for the past few quarters.
While valuations on the counter have come off at reasonable levels and the recent dividend/buybacks are seen supporting the stock prices, analysts believe a stock-specific approach across the sector makes better sense than contra bets at present. READ MORE
SBI cuts lending rates
SBI fell 0.8% after it announced reduction of interest rates on home and automobile loans by five basis points (bps).
In a statement issued here the bank said, it has reduced home loan interest rates to 8.30%. Similarly, automobile loan is now offered at a starting interest rate of 8.70% per annum compared to earlier 8.75%.
11:58 AM BUZZING STOCK
Shares of Solar Industries India rose 6% intraday as it has bagged order worth Rs 1,143.63 crore from Coal India for supply of bulk explosives.
The company has bagged the running contract for supply of 375412MT bulk explosives to the subsidiaries of the Coal India.
Hexaware Technologies hits 52-week high as Q3 profit beats estimates
Hexaware Technologies hit 52-week high of Rs 305, up 9% on the BSE, after the company reported a better than expected consolidated net profit of Rs 142 crore in September 2017 quarter (Q3CY17). The analysts on an average had expected profit of Rs 122 crore for the quarter.
Revenue for the quarter in line with the analyst estimates of Rs 993 crore against Rs 984 crore in June quarter (Q2CY17). In dollar terms, revenues for the quarter at USD 154 million grew by 0.9% QoQ versus street estimates of 0.5% QoQ growth.
Slips in trade
Shares of NTPC lost over 2% as investors turned cautious following a boiler blast at one of its plant that killed over 20 people.
A massive explosion ripped a boiler in the state-run power giant NTPC's Unchahar plant in Uttar Pradesh's Rae Bareli district on Wednesday, killing at least twenty persons while scores suffered severe burn injuries, officials said.
11:17 AM PSU Banks extend gains
11:02 AM Market Check at 11 am
66 resolutions defeated by shareholders in last three years
Minority shareholders have defeated at least 66 resolutions in the last three years. This has coincided with the new Companies Act and corresponding changes brought in by regulators that have empowered the shareholders. Other convenience measures such as e-voting have also helped.
While the number of rejected resolutions was high in 2014 at over 30, it has stabilized around a dozen defeated resolutions, every year, according to numbers collated by proxy advisory firm Institutional Investor Advisory Services (IiAS).
Sun Pharma, Dr Reddy's, Glenmark gain even after price-fixing charges in US
Shares of pharmaceutical companies were in focus and trading higher in otherwise subdued market even after the media reports suggested the four Indian drug makers are facing allegations of a huge price-fixing conspiracy in the US aimed at keeping prices of generic drugs artificially high. Click here for more
Do mutual funds also have to be linked with Aadhaar?
After PAN, bank account and phone number, now your mutual fund account too has to be linked to Aadhaar. The Association of Mutual Funds in India (Amfi) has informed fund houses that no new folios can be opened after January 1, 2018 unless Aadhaar is provided. Fund houses have been also asked to link all existing folios with Aadhaar by December 31, 2017. Unless this is done, existing investors will not be able to make fresh investments. READ MORE
LIC insurance for New India Assurance's mega IPO
Life Insurance Corporation of India (LIC) has again acted as a white knight, to ensure success of The New India Assurance Company’s Rs 9,600-crore Initial Public Offering (IPO), through which the Centre is eyeing Rs 7,680 crore.
New India garnered full subscription on Wednesday for its IPO, the country’s fourth largest. It was the issue’s first day and got bids for 125 million shares, as against 120 mn on offer. However, the bulk of the bids were from domestic institutional investors (DIIs), mainly LIC.
Hopes keep Divi's Labs stock elevated
The performance of Divi’s Laboratories in the September quarter (Q2) was hit by import alerts issued by the US FDA (US drug regulator). All its key parameters declined for a third consecutive quarter. Its revenue was down 11%, operating and net profit fell 5% and 8%, respectively, during the period. Profitability, too, was below expectation.
Revenue at Rs 890 crore met the Bloomberg consensus expectation of Rs 883 crore but remediation efforts towards FDA issues took a toll on profitability.
India at 8th spot in m-cap rankings
India has pipped Canada to become the world’s eighth largest stock market by capitalisation. This year’s 47 per cent surge in market capitalisation has helped India seal its position in the $2-trillion club. It has also climbed two positions in the coveted league table.
At $2.26 trillion, the Indian stock market is now bigger than those of Canada and Switzerland. It is 5.3 per cent and 12 per cent behind Germany and France, respectively.
9:24 AM Bharti Airtel extends gains
9:21 AM Sectoral Trend
9:19 AM Top Sensex gainers and losers
Benchmark indices open flat after hitting new highs in Wednesday's trade as the investors stay on edge awaiting the formal nomination of the next head of the central bank.
At 9:17 am, the S&P BSE Sensex was trading at 33,621, up 21 points while the broader Nifty50 was ruling at 10,442, up 2 points
Nifty view by Prabhudas Lilladher
Nifty has nearly marched towards our projected target of 10,500 with a high made at 10,451; the support for the day is seen at 10,390 while resistance is seen at 10,480. Bank Nifty would have a range of 25,270-25,680.
Trading ideas from Prabhudas Lilladher
BUY LAKSHMI VILAS BANK
CMP: Rs 156.05
TARGET: Rs 170
STOP LOSS: Rs 145
BUY BALRAMPUR CHINI
CMP: Rs 174.60
TARGET: Rs 192
STOP LOSS: Rs 164
BUY TECH MAHINDRA
CMP: Rs 488.50
TARGET: Rs 525
STOP LOSS: Rs 472
Top technical recos for today's trade by Tradebulls
CMP: Rs 97.30
Stop Loss: Rs 93.80
Target: Rs 108
SELL: BAJAJ AUTO FUT.
CMP: Rs 3274
Stop Loss: Rs 3370
Nifty Outlook by Sacchitanand Uttekar of Tradebulls Securities:
Proximity towards the upper end of the weekly ‘Megaphone’ formation and the recent series of ‘Breakaway & Run-Away’ gaps at key junctures highlights the recent upmove as a final leg towards the Climax point. Therefore, traders should maintain longs with strict stop below 10,390 (Closing Basis) & review the formation near 10,540 (upper end of the ongoing Megaphone pattern). It is likely that the ‘Exhaustion Gap’ could be just around the corner & serve as a STOP for the upmove which commenced from the recent low of 9,687.55.
India's per capita income growth lower than China, Bhutan
India has reason to be envious of two of its neighbours, Bhutan and China. The country’s 30-notch jump in the World Bank’s ease of doing business ranking to 100th place is clouded by the better performance of Bhutan (75th rank) and China (78th rank).
India is behind its neighbours on macroeconomic indicators such as per capita income growth and efficiency of capital. Its per capita income growth (in dollar terms) is now the second lowest in the region.
51 companies on BSE to report September quarter results today
As many as 51 companies on BSE are likely to report September quarter results including Vedanta, Power Grid Corporation of India, Glenmark Pharmaceuticals, Ujjivan Financial Services, HEG, Orient Cement, D-Link (India), Sundram Fasteners, Deepak Fertilizers, JSW Holdings, Berger Paints, etc among others.
New India Assurance IPO oversubscribed
The initial public offer (IPO) of New India Assurance Company was oversubscribed 1.03 times so far on the first day of the three-day bidding on Wednesday. The IPO, which aims to raise Rs 9,600 crore, received bids for 12,30,62,976 shares against the total issue size of 12,00,00,000 shares.
India at 8th spot in m-cap rankings
India has pipped Canada to become the world’s eighth largest stock market by capitalisation. This year’s 47% surge in market capitalisation has helped India seal its position in the $2-trillion club. It has also climbed two positions in the coveted league table.
At $2.26 trillion, the Indian stock market is now bigger than those of Canada and Switzerland. It is 5.3% and 12% behind Germany and France, respectively. READ MORE
Mahindra Logistics IPO subscribed 1.32 times
The Rs 830-crore initial public offering (IPO) of Mahindra Logistics, an arm of Mahindra & Mahindra (M&M), garnered a subscription of 1.32 times on Wednesday, a day before its close.
The institutional portion of the IPO was subscribed 76 per cent, while that of non-institutional investor was subscribed 10 per cent. The small investor portion was subscribed 2.2 times.
FM to oversee consolidation of PSU banks
Proposals from state-owned lenders for in-principle approval to formulate schemes of amalgamation will be placed before the Alternative Mechanism (AM) for consolidation of the banks and the AM panel will be headed by Finance Minister Arun Jaitley
Bitcoin hits new all-time high of $6,450
Bitcoin climbed to a new all-time high of $6,450 on Wednesday, boosted by bets the cryptocurrency could enter the financial mainstream after the world’s largest derivatives exchange operator said on Tuesday it would launch bitcoin futures.
Oil up as US crude inventories fall despite rising production
Oil prices edged up on Thursday as U.S. crude inventories fell despite a rise in production, while outside the United States an OPEC-led supply cut continued to tighten the market.
Brent futures, the international benchmark for oil prices, were at $60.64 per barrel, up 15 cents or 0.3% from their last close. Brent has risen more than 35% since its 2017-lows last June.
US West Texas Intermediate (WTI) crude was at $54.36 a barrel, up 6 cents from the last settlement, and some 30% above its 2017-low in June.
The Nifty50 futures on the Singapore Stock Exchange were trading 23 points lower at 10461.50 indicating a flat to negative opening for the domestic market.
8:44 AM Asia Check
Asian shares advanced on Thursday after the US Federal Reserve expressed optimism about the economy, virtually cementing the case for a year-end rate hike as investors awaited the formal nomination of the next head of the central bank.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1% in early trading, moving back toward a 10-year peak scaled in the previous session.
Japan's Nikkei stock index was up 0.2%, probing fresh 21-year highs and on track to gain 2.3% in a holiday-shortened week. Japanese markets will be closed for a national holiday on Friday.
8:43 AM Trump to name new Fed chair today
The White House plans to nominate current Fed Governor Jerome Powell as the next chair when Janet Yellen’s term expires in February, a source familiar with the matter said on Wednesday. Powell’s nomination is expected later on Thursday and would need to be confirmed by the Senate.
Rising expectations that President Donald Trump will tap Powell, who is seen as more dovish on interest rates, have pressured US Treasury yields and the dollar this week.
8:41 AM Fed keeps rates unchanged
The Federal Reserve kept interest rates unchanged on Wednesday and pointed to solid U.S. economic growth and a strengthening labor market while playing down the impact of recent hurricanes, a sign it is on track to lift borrowing costs again in December.
Investors had all but ruled out a rate hike at the central bank’s policy meeting this week and attention has largely been focused on who will be in charge of monetary policy at the end of Fed Chair Janet Yellen’s first term in February 2018.
8:40 AM Wall Street Check
On Wednesday, Wall Street posted modest gains after the Fed held policy steady as expected and underscored solid U.S. economic growth as well as a strengthening labour market while downplaying the impact of recent hurricanes.
8:39 AM Good Morning!
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First Published: Thu, November 02 2017. 15:34 IST