Sensex, Nifty end at record closing highs; realty, PSU bank stocks gain

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3:51 PM

Market wrap-up by Nikhil Kamath, Co-Founder and Head of Trading, Zerodha

Markets closed the session up for the day, on the back of domestic liquidity and positive global cues. FIIs continued to be net sellers, overall. YES Bank and Bharti Infratel were the best performers of the session, while cement and autos seemed to hold up. The overall market trend continues to remain bullish with the indices notching up fresh highs on a regular basis. Geopolitical tensions seem to have eased and the focus now remains on earning season. We expect the overall bullish trend to continue going into November, we would advocate caution at this juncture and not recommend entering fresh longs at this point.

3:47 PM

Anand James, Chief Market Strategist, Geojit Financial Services 

 

Domestic indices marched to a new record high on continuing positivity from the PSU banks and support from Asian peers. But, volatility resurfaced at the record heights especially as investors await key IPO listings.

3:46 PM

Broader markets outperform 

 

Broader markets outperformed with the BSE Midcap and the BSE Smallcap indices gaining over 1% each. 

3:43 PM

Sensex heatmap at close

Source: BSE

3:38 PM

Markets at close

The S&P BSE Sensex settled at 33,266, up 109 points, while the broader Nifty50 ended at 10,363, up 40 points. 

3:29 PM

Centrum Research on Mahindra Logistics IPO

 

At the higher end of the price band of Rs 429, the issue is priced at P/E of 66.9x (post dilution) on FY17 basis, which appears to be expensive given the low financial performance (FY15-17 - revenue and PAT CAGR of 18% and 8%, respectively, with negative operating cash flows in the last 2 years. Even if money raised at such valuations was flowing into the company, it would have ultimately belonged to shareholders. But in this case 100% of the money raised is going to the selling shareholders and not into the company.

Recommendation: As already mentioned, the issue is at an expensive valuation. Clubbing that with the lackluster performance of other M&M group companies – it becomes difficult to logically recommend subscribing to the issue.

Issue opens on Tuesday and closes on Thursday. 

3:18 PM

HDFC Securities on ITC

 

ITC is a market leader in cigarettes (~70% market share), notebooks, valued-added paperboards and a critical player in biscuits. The company operates at EBITDA margin of 36%, along with core RoCE of ~40%. We have BUY rating with a target price of Rs 358, based on 32x Sep-19EPS.

 

Near-term outlook: With anticipation of improvement in operating performance, we expect healthy upside in the near-term too.

3:13 PM

Top five gainers on Nifty

Source: NSE

3:06 PM

European markets

Spanish equities opened 1.4% higher on Monday, reassured by weekend demonstrations for a unified Spain and a poll showing a lead for parties opposed to Catalan independence.

 

Broader European shares traded sideways.

 

The pan-European STOXX 600 index was down 0.1%, but Spain’s IBEX benchmark rose, led by Caixabank and Banco de Sabadell, shares in which rose 4.2% and 3.6%, respectively.

3:03 PM

Markets check

At 3:00 pm, the S&P BSE Sensex was trading at 33,293, up 136 points, while the broader Nifty50 was ruling at 10,371, up 48 points. 

2:47 PM

Buzzing stock

Lupin rose 7% to Rs 1,074 on the BSE after the pharmaceutical company reported a consolidated net profit of Rs 455 crore for the quarter ended September 2017 (Q2FY18). The analyst an average had expected profit of Rs 433 crore for the quarter. READ MORE

2:36 PM

Offshore India funds, ETFs pump in $6 bn in Jan-Sep

 

Optimistic of the country's long-term growth prospects, India-focussed offshore funds and exchange-traded funds (ETFs) have pumped in nearly $6 billion in the first nine months of the year. READ FULL REPORT

2:15 PM

Nifty Energy index up nearly 1% 

Source: NSE

1:47 PM

Mukesh Ambani on Indian economy

 

India represents the biggest investment opportunity in the world right now and its economy will treble in size to $7 trillion from $2.5 trillion in the next decade, Reliance Industries Chairman Mukesh Ambani said on Sunday. READ DETAILS HERE

1:30 PM

Markets check

At 1:30 pm, the S&P BSE Sensex was trading at 33,303, up 146 points, while the broader Nifty50 was ruling at 10,372, up 49 points. 

1:16 PM

Unichem Lab near record high on talks of Torrent Pharma eyeing domestic biz

 

Unichem Laboratories was trading 3% higher at Rs 315, extending its past two days 17% surge on the BSE, as media reports suggest that Torrent Pharma is in advanced talks to buy the company’s domestic business.

 

The stock of Unichem Laboratories hit a fresh 52-week high of Rs 323 on the BSE in early morning trade. It is trading close to its record high of Rs 334 touched on October 6, 2015 in intra-day trade. READ MORE

1:01 PM

Sectoral Trend

Source: NSE

12:39 PM

Engineers India extends rally on good Q2 earnings

 

Engineers India hit fresh 52-week high of Rs 190, up 5%, extending its 19% surge of the last three days on the BSE, after the company reported a good set of numbers with net profit and revenues growing more than 25% in July-September 2017 quarter (Q2FY18).

 

The net profit of the company increased by 27% at Rs 119 crore in Q2FY18 against Rs 94 crore in the corresponding quarter of the previous fiscal year. Revenue from operations grew 26% to Rs 429 crore from Rs 339 crore in the same quarter year ago. READ MORE

12:17 PM

PSB rally has more legs; re-rating, more upside likely, say analysts

 

Even after a record rally in public sector bank (PSB) stocks since the announcement of recapitalisation plan, analysts covering the sector sees more upside as they believe the financial health of the PSBs will soon improve, triggering a re-rating of these bank stocks.

 

The analysts, however, see more value in larger PSU banks as the risk of equity dilution lies more in small and mid-sized PSU banks. 

 

Since the announcement on October 24, the Nifty PSU Bank index has rallied over 23%, as compared to just 1% rise in the benchmark Nifty50 index, ACE Equity data show. READ MORE

12:01 PM

Market Check at 12

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,304.61	+147.39	+0.44
S&P BSE SENSEX 50	10,763.00	+55.31	+0.52
S&P BSE SENSEX Next 50	36,168.03	+390.61	+1.09
S&P BSE 100	10,813.96	+65.66	+0.61
S&P BSE MidCap	16,569.58	+190.00	+1.16

11:43 AM

TTML zooms over 100% in 12 trading days post deal with Bharti Airtel

 

Tata Teleservices (Maharashtra) Limited (TTML) is locked in upper circuit of 5% at Rs 8.22, extending its eleven-session long rally on the BSE, after the company announced it has entered into an agreement with Bharti Airtel to merge its and its group company Tata Teleservices (TTSL)'s consumer mobile business (CMB) with that of Airtel’s.

 

Bharti Airtel and Tata on October 12 said that the acquisition is subject to requisite regulatory approvals. As part of the Agreement, Bharti Airtel will absorb Tata CMB’s operations across the country in nineteen circles (17 under TTSL and 2 under TTML). READ MORE

11:26 AM

Mahindra Logistics commands 20% premium in grey market

 

Shares of Mahindra Logistics are commanding a 20 per cent premium in the unofficial market. Mahindra and Mahindra’s (M&M’s) logistics arm’s Rs 830-crore IPO opens on Monday. The offering is a secondary share sale by parent M&M and private equity player Kedaara Capital. 

 

“Shares are changing hands at Rs 520 against the IPO price band of Rs 425-429. Strong growth track record and big management banner are keeping investor sentiment buoyant,” says a broker.  READ MORE

11:10 AM

Gold demand remains dull post Diwali even after drop in prices

 

The physical gold market remained quiet in most Asian centres this week despite a drop in prices with India witnessing a lull in fresh purchases as key festival season demand cooled off in the world’s second biggest consumer.

 

Gold prices in India slipped to 29,209 rupees per 10 grams on Friday, the lowest level in about two months.

 

Prices in India were at a premium of up to $3 an ounce over official domestic prices this week, up from $2 last week. The slight increase in premiums was due to traders looking to cover for purchases made when rates were higher.

10:53 AM

Sebi panel suggests independent regulator needed for auditors

 

The new norms proposed by the Securities and Exchange Board of India's (Sebi) corporate governance panel for auditors has strengthened the case for the establishment of an independent auditor as mooted by the government.

 

The Parliamentary Standing Committee on Finance had in 2012 specified the need for a quasi-regulatory body for supervising audit quality. This would in the form of a National Financial Reporting Authority (NFRA) provided for in Section 132 of the Companies Act, 2013 for matters relating to accounting and auditing.

10:40 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,279.55	+122.33	+0.37
S&P BSE SENSEX 50	10,759.37	+51.68	+0.48
S&P BSE SENSEX Next 50	36,167.42	+390.00	+1.09
S&P BSE 100	10,810.89	+62.59	+0.58
S&P BSE MidCap	16,573.81	+194.23	+1.19

10:24 AM

UTI-Banking & PSU Debt Fund: Focused on safety, liquidity

 

The benchmark Nifty has recovered all its losses seen in September to end at a record high on Friday.  Launched in January 2014, UTI-Banking & PSU Debt Fund is classified under the debt-short category of CRISIL Mutual Fund Ranking. 

 

The fund has been constantly ranked in the top 30 percentile (CRISIL Fund Rank 1 or 2) over the past four quarters ended June 2017. It has been managed by Sudhir Agarwal since January 2014. It has quarterly average assets under management of Rs 1,324 crore at the end of June 2017 quarter. READ MORE

10:09 AM

Interview of the day

 

Equity returns in 2018 will be lower: Jyotivardhan Jaipuria

 

Mutual fund investments in equities are near record highs at a time foreign institutional investors (FIIs) have been mostly fence-sitters.

 

 Jyotivardhan Jaipuria, founder and managing director, Veda Investment Managers, says that FIIs are justified in investing in developed markets which look more attractive. Once growth picks up back home, we should see them come back to India, he adds. Click here for full interview

9:54 AM

ONGC hits 5-month high as Q2 profit beats estimates

 

Oil and Natural Gas Corporation (ONGC) hit a five-month high of Rs 190, up 3% on the BSE in early morning trade after the country’s biggest oil and gas producer, reported a 3.1% increase in second-quarter profit at Rs 5,131 crore, on back of higher oil prices.

 

The net profit in September 2017 quarter (Q2FY18) was better than expected against an average analysts estimates of Rs 4,543 crore. The stock was trading at its highest level since May 11, 2017.

 

Revenue was up 3.1% at Rs 18,966 crore in Q2FY18 against Rs 18,395 crore in the corresponding quarter of previous fiscal. READ MORE

9:40 AM

Nifty PSU Bank index up over 1%

Source: NSE

9:31 AM

HDFC Bank moves closer to top 10 global lenders' league

 

HDFC Bank is within kissing distance of breaking into the league of 10 most-valued global banks. A stellar 55% rally (in dollar terms) this year has helped the domestic lender improve its standing to 12th from 22nd at the start of the year. 

 

At present, HDFC Bank is valued at $71.2 billion, 1.3% below Netherlands’ ING Group — the 10th most valuable bank. The domestic lender’s market capitalisation is more than that of marquee global banks such as Barclays, JP Morgan Chase and Credit Suisse. READ MORE