Sensex gains 453 pts as UK, EU reach Brexit deal; Tata Motors jumps 13%

All that happened in markets today.

4:11 PM

MARKET COMMENT :: Ajit Mishra, vice-president for research, Religare Broking

Markets continued their positive bias for yet another session and gained nearly 1%. The first half was dull, but a sharp surge in the banking index in the latter half pushed the benchmarks higher. Besides, the news of Brexit deal between the UK and European Union (EU) further boosted sentiment. All sectoral indices, barring IT, ended in green. Broader indices, too, posted decent gains.

 

Markets are currently dancing to the global tunes, in absence of any major event on the local front.  Meanwhile, we’re seeing volatile swings on the stock-specific front which usually happens during the earnings season. We suggest not to get carried away with the recent surge and maintain positive yet cautious approach

4:04 PM

Tata Motors zooms 13% on the NSE

3:52 PM

Nifty snapshot

3:51 PM

YES Bank, HUL, SBI among top contributors to Sensex's gain

3:50 PM

Sensex heat map :: Tata Motors jumps 10% on Brexit deal

3:49 PM

Index watch : BSE

3:36 PM

CLOSING BELL

The S&P BSE Sensex settled at 39,052, up 453 points or over 1 per cent while NSE's Nifty50 added 122 points or over 1 per cent to end at 11,586. 

3:25 PM

NEWS ALERT | UK PM Boris Johnson tweets on Brexit deal

3:22 PM

NEWS ALERT | Draft deal for Brexit done: UK PM tweets

3:09 PM

Index Contributors at this hour

3:04 PM

Market check | Sensex surges 400 pts

2:45 PM

Anand Rathi Research on Karnataka Bank

Weaker NII growth and higher credit costs led to Karnataka Bank?s Q2 FY20 earnings slipping. With a significant portion of its corporate-book stress already recognised, we expect asset quality to stabilise and the bank?s focus to shift toward normalising profitability. We upgrade our recommendation on the stock to a Buy, given its inexpensive valuation and limited downside risk from the current price, with an altered target price of Rs 90 (earlier Rs 126), valuing it at 0.45x P/BV of its FY21e book

2:43 PM

IIFL on MCX

MCX’s 2QFY20 PAT growth of 100% YoY was ahead of estimates, owing to higher than expected treasury income. Operationally, the performance was strong and in-line. Futures volumes grew 40% YoY to Rs345bn (ADT), driven by the bullion and energy segments; also, Ebitda margins expanded 1,500bps YoY. At CMP, the stock trades at 25x FY21ii EPS and further re-rating will be driven by improved visibility on future volume growth. BUY

2:42 PM

Jefferies on SBI Life

In terms of distribution, SBI Life is most strongly positioned insurer. While on the product innovation & being early mover, HDFC Life has been ahead of industry by far. For IPRU, in our opinion, distribution capacity is mostly utilized (thus creating growth challenges) while on product innovation, they have generally been behind the curve. In this context, both SBI Life & HDFC Life provide a good case for stable 20%+ EV compounding, and thus, expect valuation multiple gap between SBI Life (trading at 2.7x FY21EV) & HDFC Life (trading at 4.6x FY21EV) to reduce

2:41 PM

Real Estate Sentiment Index

Despite a slew of measures to arrest the slump by the government and the Reserve Bank of India (RBI) to boost liquidity and revive demand, a latest survey by Knight Frank – FICCI – NAREDCO - ‘Real Estate Sentiment Index Q3 2019’, shows that the current sentiments of the real estate stakeholders in India has plummeted further to 42 in the July-September quarter of 2019 (Q3 2019) from the preceding quarter - a level previously seen during the heightened uncertainty period of pre-election in the first quarter of 2014 and the demonetisation period (41) in the last quarter of 2016.

The future sentiment, or the outlook for the coming six months, has also turned ‘pessimistic’ for the first time since the inception of this survey, a clear indication that the sector is under immense pressure. However, sentiment toward the commercial real estate sector have remained steady, with the outlook for the new office supply strong for the coming six months. A score of over 50 signifies ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score of below 50 shows ‘Pessimism’.

2:39 PM

BUZZING IN TRADE | YES Bank advances 17%

2:36 PM

Elara Capital on Federal Bank (FB)

The stock has fallen by 17% over the past quarter. At the CMP, FB seems to be offering a good risk-reward proposition at 1.1x FY21E P/ABV. We expect a ROA of 0.95% and 0.90% in FY20E and FY21E, respectively, aided by the benefits from a tax cut, which would partially offset higher credit cost. Hence, we upgrade the stock to Buy from Reduce with a minor change in target price to Rs 104 (from rs 105) at 1.5x (unchanged) P/ABV H1FY20E

2:33 PM

BUZZING STOCK | Bandhan Bank falls 11% in two days on profit-booking

In the past two weeks, Bandhan Bank has outperformed the market by surging 33 per cent on run-up to inclusion in the MSCI Standard Index, effective October 15, 2019. The stock hit a 52-week high of Rs 638 on Tuesday. In comparison, the S&P BSE Sensex was up 0.52 per cent during the same period. READ MORE 

2:23 PM

NEWS ALERT | China-US discussing next phase of Trade Talks: China’s Commerce Ministry Spokesman Gao Feng

(As reported by Bloomberg)

2:13 PM

Pharma Q2 Preview: Lack of new US approvals to overshadow domestic revival

Amid rising regulatory risk in the sector, pharmaceutical companies are likely to post 7-8 per cent earnings growth on a 12 per cent year-on-year (YoY) revenue growth. Aggregate revenue growth would be the lowest in the last four quarters, point out analysts, who say that a decline in approvals and a lack of meaningful launches would drag the US market growth. READ MORE

2:02 PM

Market check

1:54 PM

BUZZING STOCK | Nocil advances 6%

1:49 PM

Chart Check | Glenmark and Lupin: Are pharma stocks a good contrarian bet?

Thus far in the calendar year 2019 (CY19), most pharma stocks have underperformed the market by falling up to 59 per cent. Barring Divi's Laboratories (up 16 per cent) and Dr. Reddys Laboratories (up over 3 per cent), all the other scrips in Nifty Pharma index have been under pressure. READ MORE 

1:43 PM

HUL hits record high during the day

1:37 PM

Global fund managers stay bearish on equities; recession top worry: BofAML

According to BofAML, trade war, monetary policy impotence, bond market bubble and a credit event are some of the other 'tail risks' that the fund managers seem to be wary about. 18 per cent fund managers expect short-term rates to rise over 12 months, a strong reversal from September 2018 when 87 per cent expected higher short-term rates. READ MORE 

1:36 PM

BUZZING STOCK | Mishra Dhatu Nigam gains around 3%

1:16 PM

Market check | Sharp surge in Sensex

1:16 PM

Market check

1:10 PM

NIIT falls 15% as stock turns ex-date for share buyback

On August 10, 2019, NIIT's Board had approved to buyback up to 26.8 million equity shares at Rs 125 per share for Rs 335 crore. Accordingly, October 18, 2019, was fxed as the record date for the purpose of determining the entitlement and the name of the equity shareholders who shall be eligible to participate in the buyback. READ MORE 

12:56 PM

NCDEX's turnover halved in two weeks over castor seed futures default

The turnover at National Commodity & Derivatives Exchange (NCDEX), the country’s largest futures trading platform in agricultural commodities, has declined by 52.5 per cent in the past two weeks.

 

This follows dozens of client defaults in castor seed contracts. Total turnover fell below Rs 1,000 crore on Tuesday, from the Rs 2,179 crore recorded on September 30 but recovered a little on Wednesday and in day session it was Rs 1,035 crore. The share of castor seeds was a fourth of the total at end-September, or Rs 538 crore; it was Rs 75 crore on Tuesday or 8.9 per cent in total volume. READ MORE