Anand James, Chief Market Strategist, Geojit Financial Services
Market edged higher, ahead of IIP and inflation data to be released later today, while GST rate reduction positivity lent some support, and metal and realty stocks saw momentum. An improved forecast for industrial production may be an indication that the GST-related woes have started to subside, but the investors will be focusing largely on stock-specific moves on account of corporate earnings season.
3:51 PM Sectoral trend
3:47 PM Sensex heatmap at close
3:45 PM Market breadth
The broad market depicted strength. There were two gainers against every loser on BSE. 1,696 shares rose and 971 shares fell. A total of 131 shares were unchanged.
3:43 PM Broader markets
Broader markets mirrored tha gains in the frontline indices with the BSE Midcap and the BSE Smallcap indices gaining 1% each.
3:42 PM Markets at close
The S&P BSE Sensex ended at 32,182, up 348 points, while the broader Nifty50 settled at 10,096, up 111 points.
3:25 PM RIL hits record high
Shares of Reliance Industries rallied over 4% to hit its record high of 875 ahead of its September quarter earnings due tomorrow. READ MORE
WHAT BROKERAGES EXPECT FROM RIL Q2 NUMBERS
Man Industries was locked in upper circuit of 20% at Rs 110, also its 52-week high on the BSE, after the company received order worth Rs 925 crore from GAIL (India). READ MORE
Adani Transmission rallies for 12th straight day
Adani Transmission is locked in upper circuit of 5% at Rs 213, extending its 15% gain of the last two trading sessions on the BSE, after the company said Reliance Infrastructure (RInfra) entered into exclusive talks with the company for selling its Mumbai power business. READ FULL REPORT
European markets were trading sideways even as Asian markets traded near decade-high and Wall Street logged fresh highs overnight.
The pan-European STOXX 600 index was up 0.01 percent in early deals with no clear direction across the continent. France’s CAC 40 and Spain’s IBEX were down 0.1 percent while Frankfurt’s DAX and the FTSE 100 were very slightly up.
2:54 PM Top 5 stocks that are pulling Nifty higher
Markets at day's high: Sensex above 32,000, Nifty regains 10,050
At 2:50 pm, the S&P BSE Sensex was trading at 32,098, up 264 points, while the broader Nifty50 was ruling at 10,066, up 82 points.
Can RJio dent RIL's Q2 performance? Here's what analysts say
Reliance Industries, India's most valuable company by market capitalisation (market-cap), is scheduled to report its September quarter earnings post market hours on Friday. Though the Mukesh Ambani - controlled company is likely to report a healthy growth in profit after tax (PAT) on a standalone basis for 11th quarter in a row thanks to record growth in refining and petrochemical businesses, its telecom unit Reliance Jio could impact consolidated results, analysts say. READ BROKERAGE VIEWS
Reliance Nippon sets price band for IPO
Reliance Nippon Life Asset Management on Thursday fixed a price band of Rs 247-252 per equity share for its initial public offering, through which it expects to raise Rs 1,542 crore. READ MORE DETAILS
1:26 PM Sensex heatmap in noon deals
1:02 PM Buzzing stock
Hindalco Industries, Britannia Industries, NBCC (India), TVS Motor Company, Avenue Supermarts (D-Mart) and Dabur India are among 17 stocks from the S&P BSE500 index hit their respective fresh record highs on the BSE on Thursday. READ MORE
What brokerages expect from TCS Q2 earnings
Analysts expect TCS to report positive cross currency impact of 80-130 basis points and an improvement in margin on account of lack of wage hikes and visa cost for the quarter. READ BROKERAGE VIEWS HERE
Markets not expensive, earnings should improve, say top fund managers
The Indian equities are favourably valued on parameters such as market capitalisation-to-GDP and price-to-book value, say the country’s top fund managers. This is in contrast to the popular perception that Indian markets are expensive as it trades at a price-to-earnings valuation way above its long-term averages. CLICK HERE FOR THE FULL STORY
Nifty PSU Bank index hits 9-month low
Shares of public sector banks (PSBs) are trading lower for the second straight day, with the Nifty PSU Bank index hitting nine-month low on the National Stock Exchange (NSE). The index hit an intra-day low of 3,002, its lowest level since January 11, 2017, and has slipped 18.5% from its recent closing high of 3,723 on July 31, 2017. READ FULL REPORT
Bharti Infratel hits 52-week high
Bharti Infratel hit a 52-week high of Rs 434, up 6%, extending its Wednesday’s 3% gain on the National Stock Exchange (NSE), after media report suggests that private equity firm KKR-led consortium in talks to buy Indus Towers and Bharti Infratel. READ MORE
Zen Technologies, Hyderabad-based computer hardware maker, rallied 11% in intraday trade to Rs 69 after it won biggest export order worth Rs 64 crore. The contract is for live and virtual combat training systems and is expected to be executed in the first half of financial year 2018-19.
Markets not expensive?
The Indian equities are favourably valued on parameters such as market capitalisation-to-GDP and price-to-book value, say the country’s top fund managers. This is in contrast to the popular perception that Indian markets are expensive as it trades at a price-to-earnings valuation way above its long-term averages. READ FULL REPORT
11:04 AM Markets check
At 11:00 am, the S&P BSE Sensex was trading at 31,945, up 111 points, while the broader Nifty50 was ruling at 10,025, up 40 points.
10:44 AM Nifty PSU Bank sole sectoral loser
10:35 AM Sector watch: Nifty PSU Bank index
Oil & gas, infra firms to be hit by PE norms
Oil and gas, power and other infra sector companies will be the most impacted by the change in norms of permanent establishment (PE), post-India’s recent signing of the multilateral instrument (MLI) as part of measures to prevent base erosion and profit shifting. Article 14 of the MLI provides for the criteria to determine whether time thresholds in a tax treaty for construction, installation, supervisory have exceeded the time after which a particular project or an activity will be treated as permanent establishment (PE). READ FULL REPORT
10:29 AM Market snapshot
In line with expectations Nifty bounced till 10070 after breakout above 10020 levels, but failed to sustain & finally gave up gains & closed near 9980 levels. It attempted to enter back into the wedge, but failed & slipped back lower. On sustaining below 9980 further weakness towards 9920-9900 can be seen. Failure to break & sustain below 9980, can see it remain sideways between 9980 & 10020 levels.
(Source: Systematix Research)
Result preview: RIL
2Q will likely be the 11th consecutive quarter of stand-alone q-q profit growth. We expect refining premium to the SG complex to moderate (USD4/bbl vs USD5.5/bbl in 1Q); still, both refining and petchem should report record EBITs. But the focus will be on R-Jio’s first reported quarterly numbers. Though it is difficult to forecast, we think Jio could report positive EBITDA in its first quarter itself.
(Source: Nomura report)
Expert view: Bumps ahead for bull run
The Monetary Policy Committee's (MPC's) decision to leave policy rates unchanged was expected. The Reserve Bank of India (RBI) cut its median projections for gross value added growth for 2017-18 to 6.7 per cent from 7.3 per cent. It expects inflation to range between 4.2 and 4.6 per cent in the second half of the fiscal. Upside risks to inflation include farm loan waivers and possible pay hikes to state government employees. The central bank is a little apprehensive that inflation might overshoot. What's more, there's worry about currency turmoil READ MORE HERE
TCS Q2 results today, may get major boost from key deals during quarter
India's largest IT services firm Tata Consultancy Services is expected to see its revenue grow 2-4 per cent in the July-September quarter on increased deals from North America and UK and improved spending by banking clients, say analysts READ THE FULL STORY HERE
N Chandrasekharan, Rajesh Gopinath
9:52 AM Sun Pharma gains 4% as Dadra plant gets EIR from USFDA
Sun Pharmaceutical Industries was up 4% to Rs 549 on the BSE in early morning trade in otherwise subdued market, after the company said its Dadra plant gets Establishment Inspection Report (EIR) on completion of inspection CLICK HERE FOR THE FULL STORY
9:39 AM Index watch: Indices at 9:30am
NIFTY FIN SERVICE
NIFTY PSU BANK
NIFTY PVT BANK
Sector watch: Textiles
Indian textile exporters are facing difficult times since the past few months which have led to constrained growth as well as pressures on profitability. Exporters have been facing subdued demand trends in the key importing countries as well as intense competitive pressures from nations such as Bangladesh and Vietnam over the past few years.
In addition, unfavourable currency movements and high raw material prices in the past six to nine months as well as recent revision in duty drawback rates have only added to their woes. With exports accounting for more than one-third of the Indian textile market, this is a matter of concern, notwithstanding a large domestic market.
Notwithstanding the pressures being witnessed on profitability, debt levels across the sector are expected to decline with the industry focusing on sweating the existing assets and thereby undertaking limited debt-funded capacity additions. Further, with cotton prices easing out from mid-September 2017 onwards, profitability pressures are likely to subside from Q3 FY2018 onwards. As a result, ICRA expects the financial and credit risk profiles of most textile exporters to remain stable.
(Source: ICRA report)
Nifty closed in the negative territory in last trading after achieving our short term target as well as after retracing 78.6% of the entire fall from 10180 to 9687 levels. With this negative close a probability of this rise being a corrective rise is quite high meaning that the bounce back is over.
With this wave 2 bounce is over as well as the right shoulder of the head and shoulders pattern. Now, the target on the lower side comes to 9700 initially till 10100 levels are not taken off and if 9685 levels break now then the neckline of the bearish head and shoulders will break which will lead to further sell-off.
We recommend investors not to be aggressively long till 10100 levels are not taken off and if 9850 levels break it will confirm the same as well. So, the short term range is 10100 to 9850 with a sideways to negative bias.
(Source: Anand Rathi Research)
Motilal Oswal Research on GIC Re IPO
We are positive on GIC for long term as both general and reinsurance sector in India provides huge opportunity for growth as it is highly underpenetrated compared to other developing and developed economies. The company has delivered decent Revenue/PAT growth of 25%/9% in FY14-17.
Other key strengths include: 1) Leader in Indian reinsurance industry with 44 years of experience, 2) Diversified investment portfolio generating strong growth and yields, 3) Diversified product portfolio and revenue streams, 4) Significant global player with growing international presence, and 5) Strong ROEs in excess of ~16% for the last 4 years.
At the upper price band, the issue is priced at PE of 25.5x FY17 post issue (and 25x FY17 pre issue) and P/B of 4x post issue (and 3.9x FY17 pre issue) which we believe is attractive. Hence we recommend SUBSCRIBE for long term investment.
Stock view: Mahindra & Mahindra
M&M expects tractor growth of ~10-12% for FY2018 and we believe it will continue to gain market share post success of its new launches (YUVO). In Q1FY2018 the company’s domestic tractor market clocked the highest share ever at 45.8%. For UVs, new launches — MPV ‘U321’ (FY2018) and Tivoli based compact SUV ‘S201’ remain on track and key for revival of business. In our view, robust tractor outlook and UV recovery will support growth.
The stock at the current market price trades at 19.3x its reported consolidated EPS of Rs.68.33 for FY2017 and at 17.6x and 14.8x its FY2018E EPS and FY2019E EPS of Rs.75 and Rs.89.4 respectively which is ~30% discount to its large cap peers. With r the expected recovery in the rural incomes the farm equipment segment will continue to help the company post robust performance in the quarters going forward.
(Source: Equinomics Research)
9:27 AM Sensex heatmap at open
9:22 AM Markets at open
At 9:20 am, the S&P BSE Sensex was trading at 31,900, up 66 points, while the broader Nifty50 was ruling at 10,010, up 25 points.
SECTOR RESEARCH: Metals Q2 FY18 preview
Strong commodity prices coupled with decent volume growth would continue to boost earnings of metal companies under our coverage. Commodity prices have gone up following a marginal global demand revival besides expectations of Chinese production cuts. Market players are expecting major production cuts in China during winter (Nov-March) given the Chinese Government’s focus on pollution curbing measures.
During the quarter, Chinese HRC export steel prices bounced back sharply (40%) from Q1 FY18 lows. However, the rise in domestic steel prices was quite lower vis-à-vis global prices due to subdued domestic demand growth. The impact of strong commodity prices should be marginally offset by INR appreciation.
Base metal prices have recovered on growing expectations of Chinese production cuts. Zinc touched its 10-year high and aluminium jumped to its 5-year high as supplies tightened. In the ferrous space, margins are expected to improve sequentially due to a combined play of higher steel prices and lower coking coal. In the non-ferrous space, impact of higher realizations would be marginally offset by swelled input costs. Tata Steel from the ferrous space, and, Vedanta from the non-ferrous space are our top sector picks.
Nifty outlook and key trading ideas by Tradebulls
Though the broader trend is expected to remain intact with a minor hurdle near 10,100, slippages towards 9,888 should not be considered as a change in trend. We retain our stance that the upmove on a broader basis would continue towards 10,370 while momentum would be witnessed only above 10,100. Hence any declines should be considered as an opportunity to add longs. READ STOCK PICKS HERE
Devangshu Datta on Nifty, Bank Nifty, Vedanta, Coal India, and Wipro
READ DETAILS HERE
Technical calls by Prabhudas Lilladher
CMP: Rs 1,606.45
TARGET: Rs 1,780
STOP LOSS: Rs 1,530
The S&P BSE Sensex gained over 100 points, but was trading below 32,000 in pre-open trade, while broader Nifty tested its key 10,000 mark.
8:59 AM Earnings today
TCS, IndusInd Bank, Bajaj Corp, Cyient, and Reliance Industrial Infrastructure
8:58 AM Stocks in news
TCS, IndusInd Bank, Monsanto, Bank of Baroda, Jay Bharat Maruti, Sun Pharma, L&T, and Lupin
Asian markets were trading near decade-high. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.15% and is within a hair of the decade high touched in the previous session.
Japan's Nikkei was up 0.4% after brushing 20,980.92, its highest since December 1996. South Korea's KOSPI added 0.1% to mark a fresh record high.
Wall Street update
While Wall Street reaction was muted to minutes of the most recent Federal Reserve policy meeting, a report that a market-friendly candidate was being pushed as successor to Janet Yellen at the helm of the US central bank helped indexes close near the highs of the day.
Stocks ended near session highs after a report from Politico said Treasury Secretary Steven Mnuchin was pushing president Donald Trump to name Jerome Powell, seen as a safe pick for financial markets, as the next Federal Reserve chairman.
The Dow Jones Industrial Average rose 42.21 points, or 0.18% to end at 22,872.89, the S&P 500 gained 4.6 points, or 0.18% to 2,555.24 and the Nasdaq Composite added 16.30 points, or 0.25% to 6,603.55.
8:43 AM Singapore Nifty
At 8:43 am, SGX Nifty was trading at 10,022, up 33 points or 0.33%.
8:42 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Thu, October 12 2017. 15:37 IST