Sensex gains 222 points, Nifty ends at 9,979 as metal stocks rally

All that happened in Friday's trade

3:47 PM

Anand James, Chief Market Strategist, Geojit Financial Services

 

Expectations of more business-friendly reforms out of today's GST council meeting assisted the market to inch further closer to the 10,000 level. Positivity ahead of the festive season has also encouraged to take more risks. However, inflation numbers and upcoming earning season should keep investment optimism measured.

3:46 PM

Sensex gainers and losers at close

Source: BSE

3:44 PM

Market breadth

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,703 shares rose and 963 shares fell. A total of 111 shares were unchanged.

3:42 PM

Broader markets 

 

The BSE Midcap and the BSE Smallcap indices outperformed to gain 1% each. 

3:39 PM

Sectoral trend 

The Nifty Metal index was the leading sectoral gainer, followed by Nifty PSU Bank. 

Source: NSE

3:36 PM

Markets at close

The S&P BSE Sensex settled at 31,814, up 222 points, while the broader Nifty50 ended at 9,979, up 91 points.

3:20 PM

Buzzing stock

Granules India rose over 3% to Rs 118 on BSE after the company said that it has received establishment inspection report from the US drug regulator for Vizag facility.

 

USFDA had inspected this facility in December 2016 and had found seven observations during the inspection. This facility currently manufactures active pharmaceutical ingredient (API) intermediates.

3:12 PM

European markets

Europe’s major benchmarks were set to end a tumultuous week on a slightly softer note, with investors’ focus turning from a separatist crisis in Catalonia to US jobs data expected later in the day.

 

The pan-European STOXX 600 dipped 0.1% in early trading, but remained on track for its fourth straight weekly gains. Spain's IBEX declined 0.2% after a strong rally in the previous session as nerves over Catalonian independence eased.

 

The main Spanish benchmark was set for a 1.7% fall on the week, having hit its lowest in more than six months on Wednesday as investors sold Spanish assets in the deepening political crisis.

3:06 PM

Netflix shares hit record high 

Online streaming platform Netflix has raised the monthly price of its most popular streaming plan in the US.

 

The two-stream HD tier is now available for $10.99 per month for new subscribers while existing customers will be moved to the new rate over the next few months. This is $1 per month more from the previous $9.99 monthly fee.

 

This led to shares of Netflix hitting a new all-time high, climbing more than 4 per cent and peaking at $192.80 per share in Thursday morning trading.

3:01 PM

Markets check

At 3:00 pm, the S&P BSE Sensex was trading at 31,754, up 162 points, while the broader Nifty50 was ruling at 9,958, up 70 points.

2:59 PM

Buzzing stock

 

Jubilant FoodWorks, which runs Domino's and Dunkin' Donuts outlets, hit  fresh 52-week high of Rs 1,552, gained 5% on BSE in intra-day trade, extending Thursday’s 5% gain, on expectation of revival in same-store sales growth (SSG) during the current financial year 2017-18 (FY18). READ MORE

2:39 PM

Reliance Securities on HDFC Bank

The HDFC Bank has delivered a healthy performance on business growth and operating front in 1QFY18. Despite a mere 6.1% YoY growth in banking industry loan, its loan book grew by 23.4% YoY and 4.8% QoQ,. This outperformance on loan growth front with a huge margin vs the industry is really commendable as it is the second largest bank in India in terms of loan book size.

 

As a result, we have upwardly revised our earnings estimates by 1.9% and 3.1% for FY18E & FY19E, respectively. We maintain our BUY recommendation on the stock with an upwardly revised Target Price of Rs 1,940 (from Rs 1,833 earlier) based on 4x FY19E Adjusted Book Value.

2:18 PM

Sensex heatmap in noon deals 

Source: BSE

1:56 PM

Edelweiss Securities on Future Retail

 

On sustained strong SSG, improving margin and better inventory turns, we estimate ~690bps jump in RoE to 23.5% over FY17-19. We maintain ‘BUY/SO’ and revise our target multiple to 30x FY19E EV/EBITDA (earlier 25x) and arrive at TP of Rs 619 (earlier Rs 516) aided by synergy benefits and increase in market share in prime location. At CMP, the stock trades at 21.4x FY19E EV/EBITDA.

1:38 PM

Top five Nifty gainers in noon deals 

Source: NSE

1:12 PM

BSE Smallcap index up for 6th straight day

 

Jamna Auto Industries, Geojit Financial Services, Gufic Biosciences, HEG, KRBL, Meghmani Organics, NOCIL, Sanghi Industries and TVS Electronics Company are among 31 stocks from the S&P BSE Smallcap index that hit their respective record highs on the BSE.

 

The index is 2% away from its record high of 16,982 touched on September 20, 2017.

 

Since September 27, the smallcap index rallied 5.3% as compared to 4% rise in the S&P BSE Midcap and 2% gain in the benchmark S&P BSE Sensex. READ MORE

 

12:58 PM

What makes joint ventures challenging in India

 

The past few weeks have seen several joint ventures between Indian and foreign companies come into the spotlight. While McDonald's and Indian entrepreneur Vikram Bakshi are fighting aggressively in courts, Tata Steel and German major ThyssenKrupp have come together to address the issue of overcapacity in Europe's steel market.

 

Experts say most business groups in India, including the Godrejs, Tatas and Mahindras have seen their patience tested in JVs, with some of them winding up quickly. READ MORE

12:39 PM

BUZZING STOCK

Share price of Majestic Auto added 6.3% intraday on Friday as it has closed at fine blanking division due to lack of orders and profitability.

 

The company has shut down its fine blanking division which was a part of its manufacturing business vertical due to unviable business operations; lack of viable orders & profitability.

12:21 PM

Govt's push to attract offshore fund managers fails to take off

 

Overseas funds are not showing any enthusiasm in relocating their fund managers to India despite a relaxed regulatory regime and several incentives provided by the government. According to experts, tough eligibility conditions and a high compliance burden were acting as impediments. 
 

Since the beginning, all major foreign portfolio investors (FPIs) were wary of having their fund managers located in India as they would then become a tax resident here and hence, the money being managed would be subjected to multiple taxes. READ MORE

12:08 PM

India's economic slowdown an aberration, GST will revive growth: World Bank

 

World Bank President Jim Yong Kim said the recent slowdown in India's economic growth is an "aberration" caused by temporary disruptions in preparation for the Goods and Service Tax (GST) and asserted that it will get corrected in the near future.

 

Kim while responding to questions on the slowdown in India's growth in the first quarter said GST is going to have a positive impact on the Indian economy.

 

"There's been a deceleration in the first quarter, but we think that's mostly due to temporary disruptions in preparation for the GST, which by the way is going to have a hugely positive impact on the economy," Kim told the media during a conference ahead of the annual meeting of the International Monetary Fund and the World Bank.

11:54 AM

Market Check

Benchmark indices continued trading higher with Sensex gaining over 200 points, while the Nifty traded comfortably above 9950-mark ahead of the GST Council meet.

 

At 11:54 am, the S&P BSE Sensex was trading at 21,798, up 206 points while the broader NIfty50 index was ruling at 9,962, up 73 points

11:41 AM

Steel stocks in focus as Tata Steel posted good sales, production in Q2FY18

 

Shares of frontline steel companies were up in the range of 2% to 7% after the Tata Steel reported a good sales and production in July – September quarter of the current fiscal (Q2FY18).

 

Tata Steel, Steel Authority of India (SAIL), Jindal Steel & Power (JSPL), JSW Steel, Jindal Saw and Jindal Stainless (Hisar) from the S&P BSE500 index were up between 2% and 4% on the BSE. Vardhman Special Steels, Prakash Industries, Maharashtra Seamless, Surya Roshni, Sarda Energy & Minerals and Mukand were up in the range of 3% to 9%. READ MORE

11:20 AM

Chemical stocks rally

 

Shares of chemical firms are on a roll with BASF India, India Glycols, Mysore Petrochemicals and Grauer & Weil (India) rallying up to 16% on the BSE in intra-day trade.

 

Gujarat Alkalies & Chemicals, Goa Carbon, Deepak Nitrite, NOCIL, Oriental Carbon & Chemicals, Phillips Carbon Black, Tata Chemicals and Ultramarine Pigments hit their respective record highs on the BSE. READ MORE

11:08 AM

Rebounding volumes signal recovery for Coal India

 

A 16% year-on-year (y-o-y) growth in Coal India’s dispatches in September has not only pushed up the year-to-date run rate to 8%, but also signals an improvement in the company’s prospects. 

 

The rise in September volumes follows a 19% uptick in August. This boosts confidence in the company’s overall volume growth and earnings for FY18. Analysts at JM Financial said offtake growth in the September quarter (Q2) was 14% (following a recovery in August and September) and it should reflect in the company’s earnings. READ MORE

10:45 AM

Future Retail: Synergy gains in HyperCity acquisition

 

The deal between Shoppers Stop and Future Retail is a win-win outcome for both sides as it helps the former bring down its debt and focus on the departmental store format while enabling the Future Group expand its presence at a reasonable cost.    

 

Manish Jain of Nomura believes there are a number of synergies between the two (Future Retail and HyperCity) given primary focus on food/grocery and fashion. READ MORE

10:31 AM

MAS Financial Services IPO kicks off today: Should you subscribe?

 

MAS Financial Services (MAS), a Gujarat-based non-banking financial services company (NBFC), kicked off its Rs 460 crore initial public offer (IPO) on Friday with most brokerages suggesting 'subscribe' to the issue. 

 

The two-decade-old NBFC's public issue comprises a fresh issue of shares worth up to Rs 233 crore and an offer for sale of up to Rs 227 crore by existing shareholders. It has fixed a price band of Rs 456-459 per share for its initial share sale offering.

 

Click here to find out what leading brokerages and research houses suggest

10:15 AM

Bond bulls relish India as best story post September selloff

 

The first back-to-back monthly losses since 2015 for India’s bonds are giving bulls fresh reason to add to their positions in what’s one of the world's fastest-growing major economies.

 

Aberdeen Standard Investments says it's "thrilled" to see a pullback in Indian asset prices that provides good value, while Pacific Investment Management Co, which had been reducing its holdings in the country’s debt, is looking to add back. Morgan Stanley Investment Management says it favours rupee bonds, though prefers to hedge its currency exposure. READ MORE

9:59 AM

Shoppers Stop, Future Retail rally on HyperCity deal

 

Shares of Shoppers Stop and Future Retail rallied by upto 9% on BSE after the Kishore Biyani-led Future Retail said it would buy Shoppers Stop-owned HyperCity for Rs 911 crore.

 

Shoppers Stop hit a fresh 52-week high of Rs 552, rallied 9% on BSE in intra-day trade, and Future Retail surged 6% to Rs 559 in early morning trade.

 

“The board of directors of Shoppers Stop, at its meeting held on Thursday, October 5, 2017, has approved sale of 77.16 million equity shares of Rs 10 each, constituting 51.09% of the paid up share capital of HyperCity Retail (India); (HyperCity / subsidiary company) to Future Retail,” Shoppers Stop said in a statement. READ MORE

9:49 AM

Analysts expect Tata Motors' India business to turn around by FY19

 

The Tata Motors' stock has gained about six per cent since the start of the month, on expectation of improved volumes, both at Jaguar Land Rover (JLR), its entity abroad, and the standalone level (largely India operations). 

 

What will help at JLR is that the management has retained its margin expectation of 14-15% for the medium term, citing a winding down of unfavourable foreign exchange hedging (likely over the next couple of quarters), higher scale from new launches such as the Discovery and Velar, and a better sales mix. READ MORE

9:37 AM

More than 50% large-cap equity funds underperform their benchmark indices

 

More than 50 per cent of the large-cap and mid/small equity funds underperformed their respective benchmark indices for one year period ending June 30, says a report.

 

Asia Index's S&P Indices Versus Active (SPIVA) India Scorecard, 52.87 per cent of large-cap equity funds, 56.52 per cent of mid/small-cap equity funds underperformed their respective indices, in the past one year.

 

"As of June 2007, there were 118 large-cap equity funds available for investment. Out of these, 40 funds either merged or liquidated over the 10-year period ending June 30 2017 resulting in a survivorship rate of 66 per cent," Asia Index Associate Director (Global Research & Design) Akash Jain said. READ MORE