Anand James, Chief Market Strategist, Geojit Financial Services
Simmering geopolitical tensions in the Korean peninsula kept investors on the backfoot, but expectations of more tax reliefs kept stocks buoyant. Auto and PSU bank sector found traction, but a rise in VIX over 8% indicates that the record peaks, and the deluge of IPOs have had investors in two minds.
3:42 PM Sensex heatmap at close
3:41 PM Markets at close
The S&P BSE Sensex logged its fresh closing high of 33,731, up 45 points, while the broader Nifty50 ended at 10,451, down 0.7 point.
3:39 PM Markets at close
European markets edged lower on Monday after a strong run, with declines in Asia weighing as some earnings disappointments also took the shine off early deals.
The pan-European STOXX 600 was down 0.1% with Dutch firms SBM Offshore and Vopak falling sharply after badly received results. Euro zone stocks and blue chips were down 0.3% and 0.4%, respectively.
Paradise Papers: Jindal Steel, Videocon take a hit
Shares of various firms, led by Jindal Steel, today fell by up to 2.3 per cent amid reports that their names have cropped up in the leaked list of 'Paradise Papers' of companies.
The scrip of Jindal Steel & Power went down by 2.32 per cent, Essar Shipping lost 2 per cent and Videocon Industries fell by 1.82 per cent on BSE. READ FULL REPORT
Union Bank of India rose as much as 6% despite posting a surprise second-quarter loss last week, as investors welcomed improvements in asset quality trends.
At 3:00 pm, the S&P BSE Sensex was trading at 33,810, up 124 points, while the broader Nifty50 was ruling at 10,477, up 24 points.
Prabhudas Lilladher on Titan Company
We are upgrading Titan from Accumulate to BUY as we increase FY18 and FY19 EPS estimates by 20‐25%. This follows 68.5% PAT growth in 2Q18 led by 1) 49% grammage growth in jewellery 2) 260bps jewellery margin expansion 3) smart margin recovery in watches despite absorbing higher GST and 2% additional dealer discounts 4) market share gain in Jewellery and 100 bps share gain in watches in LFS. We believe Tanishq is in a sweet spot led by 1) discounts on purchase above 75gms in wedding jewellery 2) discount on purchase exceeding Rs 200,000 in studded jewellery 3) activation campaign on recycling of old jewellery and 4) lower premium on gold prices which are reducing price gap with the competitionand 5) steady network expansion and brand building.
We estimate 29.5% PAT CAGR over FY17‐FY20. We value the stock at 40xSept19 EPS and arrive at a target price of Rs759 (Rs580 based on 40xSept19 EPS earlier). Higher than expected margin expansion in both jewellery and watches can provide upside risk to our estimates. We expect premium valuations to sustain given strong tailwinds in jewellery business, strong balance sheet and steady improvement in other businesses. Upgrade to Buy.
Oil hits $63 a bbl, highest since 2015
Oil prices hit their highest levels since July 2015 early on Monday as markets tightened, while Saudi Arabia's crown prince cemented his power over the weekend through an anti-corruption crackdown that included high-profile arrests. READ FULL REPORT
2:07 PM Buzzing stock
Vakrangee moved higher by 6% to Rs 559 on the BSE in noon deal after the company said that its board will meet on November 13, 2017 to consider issue of bonus shares. The stock is trading close to its record high of Rs 566 touched on November 1, 2017 on the BSE in intra-day trade. READ MORE
Capacit'e Infraprojects gets stronger
Capacit'e Infraprojects gained nearly 5% to Rs 385 on BSE after the company announced that it has bagged a contract worth Rs 825.01 crore from Arihant Abode, a subsidiary of Arihant Superstructures.
The company said that the contract is for affordable housing project christened “Arihant Aspire” at Panvel, Maharashtra, in proximity to the proposed Navi Mumbai international airport.
One year of demonetisation: A review by Madan Sabnavis
Demonetisation was an attempt to address issues like black money, terror funding and counterfeit currency. Somewhere along the way, the goal post changed to digitising the economy to leave a better audit trail. Even as it caused a lot of physical inconvenience to the public, which can be the cost of such a bold programme, the economic impact is still uncertain. READ FULL VIEW
1:12 PM Top Sensex gainers and losers
Infibeam Incorporation extends rally; stock zooms 54% in four days
Infibeam Incorporation hits a new high of Rs 196, up 17% on the BSE, extending its over 30% rally of the last three trading sessions on the back of heavy volumes.
In the last four trading days, the stock outperformed the market by surging 54% from Rs 127 on October 31, 2017, as compared to 1.4% rise in the S&P BSE Sensex. A combined 19.84 million shares have already changed hands on the counter till 12:00 PM; against its two-week average of sub-12 million shares on the BSE and NSE.
Rcom hits new low on media reports that Brookefield called off deal
Reliance Communications (RCom) hit a new low of Rs 15.50, down 8% on the BSE in intra-day trade as the media report suggests that Brookefield called off the deal with the company after Aircel merger falls through.
The stock has fallen below its previous low of Rs 16.60 touched on October 30, 2017 touched on the BSE in intra-day trade.
12:29 PM Market Check
Disinvestment kitty swells to Rs 37,866 crore
The government has crossed the half-way mark towards achieving the 2017-18 disinvestment target. Following the conclusion of New India Assurance’s initial public offering (IPO) last week, the government’s divestment kitty has swelled to Rs 37,866 crore, 52 per cent of the targeted Rs 72,500 crore for the current financial year.
IPOs have accounted for the bulk of the disinvestment proceeds this year. This is in contrast to two previous financial years, when the government had heavily relied on share buybacks. READ MORE
Govt to give 60% stake in ONGC fields to private firms
Nearly 25 years after ONGC's prime discovered oilfields were privatised, the oil ministry has identified 11 more producing oil and gas fields of the state-run firm for handing over to private firms to raise output.
The ministry is approaching the Cabinet to allow private companies take 60 per cent stake in producing oil and gas fields of national oil companies, ONGC and OIL, with the view that they would raise production above the baseline estimate.
Mahindra & Mahindra up 3% as board mulls bonus issue
Mahindra & Mahindra (M&M) was up 3% at Rs 1,373 on the BSE in an otherwise range-bound market as the company said that its board will consider bonus issue in their forthcoming meeting on Friday, November 10, 2017 after a gap of 12 years.
Earlier, in August 2005, M&M had issued bonus shares in the ratio of 1:1 i.e. 1 (one) bonus equity share for every 1(one) existing equity share held by the shareholders as on the "Record date".
FPIs turn net buyers in October, invest over Rs 3,000 cr in equities
After two months of intense selling, foreign investors turned net buyers in October to invest over Rs 3,000 crore in stocks, enthused by the government's Rs 2.11 lakh crore bank recapitalisation plan.
The latest inflow followed a net pullout of Rs 24,000 crore from stock markets in the past two months (August and September). Prior to that, FPIs had invested over Rs 59,000 crore in equities between February and July.
According to depository data, foreign portfolio investors (FPIs) infused a net sum of Rs 3,055 crore in equities last month. READ MORE
11:02 AM Market Check at 11 am
Reliance Nippon Life lists at 17% premium against issue price
Reliance Nippon Life Asset Management (RNLAM) made a strong debut on the bourses by listing at a 17% premium against its issue price of Rs 252 on the National Stock Exchange (NSE). The stock listed at Rs 294 on the BSE (the Bombay Stock Exchange).
The company's Rs 1,540 crore initial public offer (IPO) got a strong demand in all the three investor categories. The IPO was oversubscribed 81.54 times at the close of the bidding, with bids for 3,493 million shares, worth Rs 88,023 crore, data available with the stock exchanges showed. READ MORE
Jewellery stocks surge; Titan zooms 25% intra-day on strong Q2 earnings
Shares of jewellery companies have rallied up to 25% on the BSE in early morning trade after the Titan Company reported a strong set of numbers for the quarter ended September 2017 (Q2FY18).
Titan Company zoomed 25% to Rs 823 in intra-day trade, after the company’s consolidated net profit uincreased 71% at Rs 305 crore in Q2FY18, driven by jewellery business. It had reported profit of Rs 178 crore in corresponding quarter last fiscal. READ MORE
HDFC Standard Life Insurance IPO: Good, but an expensive franchisee
After fuelling the valuations game in the life insurance space about a year back, HDFC Standard Life Insurance Company (HDFC Life) is all geared to go public on Tuesday. At the upper end of the price band of Rs 275 –290 apiece, the firm’s equity valuation (market capitalisation) is pegged at Rs 55,248 –58,261 crore.
Considering that the private sector market leader ICICI Prudential Life (I-Pru Life) commands an equity valuation of Rs 55,700 crore, HDFC Life’s seem to be on the higher side. READ MORE
India Inc raises over Rs 36,000 cr via QIP in Apr-Sept
Indian firms mobilised over Rs 36,000 crore through issuance of shares to institutional investors during April-September period of the current fiscal, a 13-fold rise from the year-ago period.
As per the latest data available with the Securities and Exchange Board of India (Sebi), capital garnered by the listed companies through the Qualified Institutional Placement (QIP) route stood at Rs 36,653 crore in the first six months of 2017-18.
In comparison, firms had mopped-up Rs 2,818 crore in April-September period of 2016-17. READ MORE
IPOs raise Rs 57,000-cr funds in FY18; promoters, PEs corner lion's share
Indian companies have raised a record amount of nearly Rs 57,000 crore through initial public offerings so far this year, but more than Rs 45,000 crore have gone to promoters and other existing shareholders leaving only 20 per cent funds for the firms' growth and expansion plans.
Out of the total IPO funds raised by 31 companies so far in 2017, nearly 80 per cent (Rs 45,755 crore) has gone to existing shareholders. This has left Rs 11,115 crore for the companies in the form of fresh capital, according to an analysis of the IPO data available with stock exchanges. READ MORE
Interview of the day
Corporate profits, markets can double in next 4-5 years: Prateek Agrawal
Even as markets are hitting new highs, Prateek Agrawal, business head and chief investment officer at ASK Investment Managers, tells that valuations are still at fair levels, and there could be further gains, aided by a revival in earnings growth. READ FULL INTERVIEW
9:22 AM Sectoral Trend
9:20 AM Top Sensex Gainers and Losers
9:19 AM Broader Markets
In broader markets, BSE Midcap index was little changed while BSE Smallcap index was trading 0.2% higher
9:17 AM Markets Open
Benchmark indices open marginally lower as Asian shares tumble from recent decade highs on Monday and oil jumped to a more than two-year peak as Saudi Arabia’s crown prince cemented his power through an anti-corruption crackdown.
At 9:17 am, the S&P BSE Sensex was trading at 33,620, down 65 points while the broader Nifty50 index was ruling at 10,433, down 19 points
Shell firms deposited, withdrew Rs 17,000 crore after demonetisation
As the government nears completion of a year after demonetisation, the data shows suspected ‘shell’ companies deposited and withdrew Rs 17,000 crore in the days after the note ban.
The data, issued by the government, is from 56 banks for 35,000 companies, which had around 58,000 bank accounts. One company had a negative balance before demonetisation but deposited and withdrew Rs 2,484 crore after November 8, 2016, the government said. READ MORE
9:04 AM Trading ideas by Prabhudas Lilladher:
BUY YES BANK
CMP: Rs 325.95
TARGET: Rs 355-360
STOP LOSS: Rs 310
BUY KALYANI STEEL
CMP: Rs 423.45
TARGET: Rs 460
STOP LOSS: Rs 403
BUY BANK OF BARODA
CMP: Rs 171.75
TARGET: Rs 190
Nifty View by Prabhudas Lilladher:
Nifty continues to be in a new price territory with no signs of reversal for now. Our weekly range lies at 10,280 as support while resistance is seen at 10,580. Realty too has scope for further up move, however Nifty being in the overbought zone, we suggest a cautious move.
Technical calls by Angel broking:
Last Close: Rs 675.75
2) Sun TV
Last Close: Rs 881.55
Nifty Outlook by Angel Broking
For the coming week, 10482-10500 levels would be closely watched in the upward direction; whereas, the immediate support lies in the range of 10,383-10,311. At this juncture, traders are advised not to take aggressive positions and should rather keep focusing on individual stocks with a proper exit strategy.
As far as sectoral view is concerned, we would expect ongoing buzz to continue in ‘Pharmaceutical’ as well as ‘PSU’ banking space. One should also keep a close track of ‘Midcap IT’ counters that are likely to do well in the forthcoming week. READ MORE
8:50 AM Stock Recos for today's trade
DABUR - BUY
CLOSE – Rs- 340
TARGET – Rs 360
AJANTA PHARMA- BUY
CLOSE – Rs 1240
TARGET – Rs 1320-1385
TATA CHEMICALS- BUY
CLOSE – Rs-730
Nifty outlook by Devang Shah
Short-term outlook for the market remains positive till Nifty trades below 10124 levels and expecting target of 10,750-10,800 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and is expecting targets in the range of 12,000-12,200 levels in medium term.
10,000/10,200 levels is strong support & 10,500/10,700 levels is strong resistance levels respectively based on option open interest data so far for October month series. Market is going to be volatile ahead of Result season this month. Any kind of short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses. READ MORE
PM Modi says India may announce tax relief for traders this week
India may announce measures next week to help traders and small businesses who say a new nationwide goods and services tax (GST) has increased their tax and administrative burden.
Prime Minister Narendra Modi said if there is the consensus at the next GST council meeting due over Nov. 9 to Nov. 10, the government would take the necessary steps to help traders and strengthen the country’s economy
8:38 AM SGX Nifty
The Nifty50 futures on the Singapore Stock Exchange were trading 15.5 points lower at 10,470 indicating a flat to negative opening for the domestic market.
Asian shares hovered near decade highs on Monday as strong US economic data and corporate earnings supported global stocks while major currencies held in tight ranges as investors focussed on US President Donald Trump’s tour of Asia this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan was a touch softer at 556.39, but within striking distance of Friday’s top of 557.93 which was the highest since November 2007.
Australian shares traded around levels not seen since April 2015 at 5,956.90 points while Japan’s Nikkei advanced further to a 21-year peak.
US markets end higher
A surge in shares of heavyweight Apple helped push up major Wall Street indexes on Friday, as investors also assessed a mixed US labor market report.
The Dow Jones Industrial Average rose 22.93 points, or 0.1%, to 23,539.19, the S&P 500 gained 7.99 points, or 0.31%, to 2,587.84 and the Nasdaq Composite added 49.49 points, or 0.74%, to 6,764.44.
8:36 AM Good Morning!
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First Published: Mon, November 06 2017. 15:34 IST