MARKET WRAP: Sensex ends 255 pts higher; financial, metal stocks advance

All that happened in the markets today

3:43 PM

SECTOR WATCH | Nifty Metal surges 4%

3:42 PM

MARKET AT CLOSE | Gainers and losers on the BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex ended 255 points, or 0.64 per cent higher at 39,983 levels while NSE's Nifty ended at 11,762, up 82 points, or 0.7 per cent. 

3:27 PM

IDBI Bank surges 18% on government stake sale plan report

The government currently owns a 47.11 per cent stake in IDBI Bank. In January 2019, Life Insurance Corporation (LIC) completed the acquisition of 51 per cent controlling stake in the lender. The state-owned life insurer infused Rs 21,624 crore into the bank. READ MORE 

3:17 PM

Centrum Broking on Mindtree

RATING: BUY | TARGET PRICE: Rs 1,600 

We expect Mindtree USD revenues to decline by 2.7% YoY for FY21E.  This is lower than peers ( We model LTI and Coforge USD revenues to grow by 6.3/4.7% for  FY21).While Mindtree has high top account concentration (Microsoft accounts to 29% of total revenues), recent deal wins and ramp ups can gradually lower top account concentration.  With limited options in diversified portfolio midcap IT Services companies (LT Infotech, Mindtree, Coforge) coupled with low float in these stocks there is  steeper movement in these stock. We value Mindtree at 21x Sep22E EPS (vs 20.5x earlier), which yields a target price of Rs1600/sh. Retain BUY

3:08 PM

IDBI Bank advances 16.5%

2:59 PM

Steel stocks in focus; JSW Steel hits 52-week high, Tata Steel surges 5%

Shares of steel companies were in demand on Friday, ralling by up to 6 per cent on the BSE on expectation of demand recovery. JSW Steel advanced 6 per cent to Rs 308, hitting a fresh 52-week high on the BSE. The stock surpassed its previous high of Rs 298 touched on October 9, 2020. Tata Steel, Jindal Steel and Power and Steel Authority of India (SAIL), on the other hand, were up 3 per cent to 6 per cent on the BSE. READ MORE

2:51 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

2:47 PM

Avadh Sugar surges 13%

2:40 PM

Explained :: How Uttam Galva Steels lost its sheen amid mounting debts

The Mumbai-based Miglanis were known for eye-catching deals. In 2009, a stake in their flagship Uttam Galva Steels Ltd (UGSL) paved the way for the world’s largest steelmaker, ArcelorMittal, to gain a foothold in India after aborted attempts at setting up greenfield plants. READ MORE

2:35 PM

SECTOR WATCH:: Metal stocks shine

COMPANY NAME	LATEST	HIGH	LOW	CHG(%)
VEDANTA	95.65	97.95	94.95	0.68
JINDAL STEEL	193.15	193.75	179.30	5.52
TATA STEEL	392.50	395.10	375.45	5.02
S A I L	33.65	33.75	32.80	2.59

2:27 PM

Result Tomorrow :: Avenue Supermarts trades weak

2:20 PM

This beaten-down stock has zoomed 306% in 6 weeks after restart of trading

The internet software & services company's stock was trading at its 52-week high level and has zoomed 306 per cent since September 7, 2020. It was last traded on May 26, 2020 and closed at Rs 23.70 on the BSE. The stock hit a record high of Rs 1,024 on November 29, 2017. READ MORE 

2:13 PM

HDFC Banks trades 2% higher ahead of Q2 nos tomorrow

2:10 PM

Edelweiss Securities on HCL Tech

RATING: BUY | TARGET PRICE: Rs 1,481

The company delivered a robust set of numbers in this quarter, delivering both on the revenue and margin front. Deal pipeline is at all-time high. These numbers reinforce our belief that we are the beginning of a tech upcycle. Overall performance was broad based with all growth engines firing. All geographies/ segments/ verticals returned to positive sequential growth.

2:04 PM

Rupee Closing

Rupee closes higher at 73.34 per US dollar vs Thursday's close of 73.38/$

2:02 PM

UPDATE | India Vix down over 1% to 21.76 levels

1:54 PM

European indices start strong

1:48 PM

BROKERAGE VIEW :: ICICI Securities on Cyient

CMP: Rs 367 | Target price: Rs 530 | Reco: Buy

>> Cyient’s reported EBIT margin for Q2FY21 was 200bps ahead of our estimate led by strong margin expansion in both services (540bps QoQ) and DLM (-930bps

QoQ). Operational improvements and lower direct costs were the key margin tailwinds. Revenues werein line with our estimates. While A&D (-11.5% QoQ in USD terms, Services) continued to struggle, communications (+7.7% QoQ, USD) and transportation (+21.6% QoQ, USD) saved the day. For FY21, the company now expects low double-digit revenue decline. Margins are expected to be flat YoY.

>> Even as A&D (31.6% of revenues) should drag performance over the next 12-18 months, we expect its impact to be more than offset by strong growth acceleration in other verticals like communications (24% of revenues). Some of the impending structural changes in the organisation should augur well for improvement in both growth and profitability. Large room for margin expansion and undemanding valuations (10.5x FY22E EPS) are the key rationale behind our BUY rating.

1:41 PM

BROKERAGE VIEW :: ICICI Securities on Mindtree

CMP: Rs 1,425 | Target price: Rs 1,810 | Reco: Buy

>> While revenue in this quarter is behind estimates, margin expansion and outlook surprised the street. Mindtree expects to keep its margins stable despite impending wage hikes, which would be an impressive achievement. We reckon steady state EBIT/PAT margins of 17.5%/14.3% by FY23E, by when cost structure should converge with that of LTI. (1) Increasing share of FPP, (2) focus on tail account rationalisation and (3) CMT-led growth should drive further margin expansion. Slight decline in top account (1% QoQ, USD) in Q2FY21 was understandable given the pandemic-led spike in Q1FY21.

>> Despite the relatively tepid deal wins (USD 303mn vs 391mn, in Q1FY21) and seasonality, growth outlook for H2FY21 remained strong. Multiples are undemanding (19x FY22E EPS) on our estimates as we already factor in the potential positive surprise. Maintain BUY with an unchanged target price of Rs 1,810.

1:35 PM

BROKERAGE VIEW :: Anand Rathi on UltraTech Cements

CMP: Rs 4,374 | Target price: Rs 5,210 | Reco: Buy

>> It has a consolidated capacity of 116.75 Million Tonnes Per Annum (MTPA) of grey cement, 0.68 MTPA of white cement & 0.85 MTPA of wall care putty. The company has 100+ RMC plants in 39 cities.

>> The century cement division reported EBITDA per ton > Rs.900/ton and turned PBT accretive in the 3rd quarter of acquisition and achieved 70% capacity utilization. The division is expected to further benefit from brand transition & operational synergies.

>> We are positive on Ultratech due to its strong business model, high operating margins, improving balance sheet, growing retail market share and potential for further integration & synergy benefits from its mergers & acquisitions. We initiate our coverage on the company with a BUY rating and a target price of ₹ 5,210 per share.

1:26 PM

Tata Steel up nearly 4%

1:25 PM

Nifty IT index slips in the red

1:17 PM

Top gainers on the BSE at this hour

1:09 PM

Cyient gains 5% as Q2 consolidated Ebit margin grows 586 bps QoQ to 11%

Shares of Cyient were up 5 per cent to Rs 383 on the BSE on Friday after the company reported 586 basis points (bps) expansion in consolidated EBIT (earnings before interest tax) margin at 11.0 per cent in September quarter (Q2FY21) on a sequential basis. The improvement in margins was led by higher utilisation, lower subcontracting cost, and lower restructuring cost. Consolidated revenue grew 1.3 per cent quarter-on-quarter (QoQ) in constant currency terms. READ MORE  

1:09 PM

NEWS ALERT :: European aviation regulator declares Boeing 737 Max safe to fly

Alert: B737 Max were grounded in 2018 after 2 fatal accidents

SpiceJet has maximum B737 Max in its fleet

1:05 PM

Sept Quarter Result | Federal Bank reports profit of Rs 308 cr vs Rs 417 cr YoY

>> Gross NPA at 2.84% vs 2.96% QoQ

>> NNPA at 0.99% vs 1.22% QoQ

>> Provisions at Rs 592 cr vs Rs 252 cr

1:01 PM

BPCL to cut dependence on Middle East LPG, seek bids from global suppliers

Bharat Petroleum Corp. is seeking bids from global suppliers for a fifth of its typical LPG needs in 2021, according to a tender seen by Bloomberg. Bidding is still open to Middle East producers, which already provide BPCL with the majority of its contracted needs. India’s second-biggest fuel retailer made an attempt to broaden its sources of supply earlier this year but the tender wasn’t awarded due to a lack of attractive offers, said traders. READ MORE

12:59 PM

Top gainers on BSE at this hour

COMPANY	PRICE(rs)	CHG(%)
IDBI BANK	36.60	8.93
IFB INDUSTRIES	701.00	7.25
SUNTECK REALTY	269.00	6.85
AMBER ENTERP.	2132.50	6.80
GUJ PIPAVAV PORT	88.65	6.04

12:48 PM

Result Tomorrow :: Analysts see sub-20% growth in HDFC Bank's profit

Earlier this month, HDFC Bank said its loan book had expanded 16 per cent on a yearly basis to Rs 10.37 trillion as on September 30, 2020, compared to Rs 8.97 trillion in the year-ago period. Deposits, meanwhile, stood at Rs 12.29 trillion at the end of September, 2020 as against Rs 10.21 trillion in the year-ago period, it said. READ MORE