Mkts end at record high: Sensex up 435 pts, ends above 33K, Nifty at 10,295

All that happened in the market today

3:50 PM

Market rundown by Vinod Nair, Head of Research of Geojit Financial Services 

 

"Market touched a new high led by the Government’s ideal plan to fix the credit growth and lack of private investment in the country, which was a key drag on the broad economic system. Ultimately it is giving a remedy to the NPA issues and capital adequacy of banks, which is an essential for credit growth."

 

3:48 PM

Nifty Infra at 7-year high

Source: NSE

3:40 PM

Nifty Bank gained 3%

Source: NSE

3:38 PM

PSU Banks rally

Source: NSE

3:36 PM

Top Sensex gainers and losers

Source: BSE

3:35 PM

Broader Markets

Broader markets underpeerformed the benchmark indices with BSE midcap index up 0.4% and BSE Smallcap index down 0.2%

3:33 PM

Markets at Close

The Indian market soared to a fresh record high on Wednesday as investors cheered mega recapitalisation package for banks and a Rs 7 lakh crore infra booster ahead of October F&O expiry.

 

S&P BSE Sensex ended over 33,000 for the first time ever. The index settled at new closing high of at 33,042 up 435 points for the day. Nifty50, on the other hand, also achieved new milestone, ending at fresh closing high of 10,295, up 87 points.

3:21 PM

Sectoral Trend

Source: NSE

3:11 PM

Infosys Q2 results: Wealth creation story of large IT stocks is over

 

Infosys’ Q2FY2018 results are in line with the large peers in the industry – year-on-year growth in revenues and net profit stand at 1.5% and 3.3% respectively. TCS and Wipro have also posted poor single digit yoy growth in revenues or profits.

 

It is quite unfortunate that three key issues have been impacting the large IT companies including Infosys – first of all the ‘base effect’. Today India’s IT export basket of nearly $110 billion cannot maintain the kind of growth momentum the industry used to maintain in 1990s or a decade ago. IT export growth also got impacted by growing restrictive practices from the US government. 

 

The problems of the industry further compounded by appreciation of rupee in 2017 – so far in this year, rupee has appreciated by 4.5%. Such significant appreciation of currency has partly led not only to Infosys’ revenue in rupee terms growing in poor single digit, but also significantly lower than the dollar revenue growth. READ MORE

3:01 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,054.06	+446.72	+1.37
S&P BSE SENSEX 50	10,685.35	+96.55	+0.91
S&P BSE SENSEX Next 50	35,364.55	+401.86	+1.15
S&P BSE 100	10,709.00	+100.65	+0.95
S&P BSE MidCap	16,209.32	+27.59	+0.17

2:53 PM

Edelweiss on Jindal Stainless (Hisar)
 

Rating - BUY

CMP - Rs 205 

Target - Rs 329

 

We expect company's net sales/EBIDTA/PAT to grow at a CAGR of 15%/19%/46% respectively between FY17-19E We believe, higher RoCE of JSHL (22%) (even on WACC adjusted basis) compared to European players (8-10%), burnished demand prospects and market leadership should lead to at par/premium valuation for the company with respect to European players. We are valuing the stock at par with European listed counterparts at 7x EV/EBIDTA, yielding

value of Rs 289/share. Additionally, we value the company’s investments in JSL (36.5% stake) at Rs 41/share to arrive at target price of Rs 329.

2:44 PM

Why Murthy-Nilekani clash is unlikely at Infosys

 

In his outburst against the Infosys board, led by his protégé Nandan Nilekani, Infosys co-founder N R Narayana Murthy has hinted that the issue of governance failure he had earlier raised during Vishal Sikka’s tenure would be buried forever.

 

It is unlikely that the founders will get into a public spat like the Murthy-Seshasayee one earlier. Nor will Seshasayee, given his statement that bringing stability back at Infosys is priority. Sikka, who has signed a non-disparagement agreement with Infosys, has also remained silent.

 

Nilekani, who knows Murthy all too well, has already bought peace with his former boss. READ MORE

2:30 PM

Pharma index slips over 1% in an otherwise firm market

Source: NSE

2:13 PM

PSU Bank index hits 52-week high; market-cap up by Rs 1.1 lakh crore

Nifty PSU Bank index hit a 52-week high of 3,980, surging 29% in intra-day trade on the National Stock Exchange (NSE) on strong rally in state-owned banks after the government cleared Rs 2.11 lakh crore bank recapitalisation plan.

The combined market capitalization (market-cap) rose by over Rs 1-lakh crore in single day, post a huge rally in PSU Banks. India’s largest lender SBI and other PSU lenders in terms of market-cap added nearly Rs 1.10-lakh crore to stock investors’ wealth. READ MORE

1:56 PM

Slips in trade

KIOCL was locked in 5% lower circuit at Rs 282.90 at 13:15 IST on BSE, with the stock declining on profit booking after logging gains in prior six trading days.

1:45 PM

UBS on bank recapitalisation plan

 

The govt announced a bank recapitalization plan and a new road building program. This should be a boost for equity market sentiment, as it fuels growth recovery hopes. The recapitalisation amount seems adequate and may create a supportive environment for growth, but it may not drive growth by itself – currently weak credit demand reflects economic activity, not just the capital adequacy of SOE banks. 

 

It may be negative for near-term bond/FX market sentiment, with a likely increase in India's debt-to-GDP. However, the scheme's impact on the fiscal deficit, liquidity and inflation is likely to be insignificant in the near term because of the way it's designed. The new road program doesn't alter the growth outlook for road spending or the capex cycle, in our view. In the near term, the Nifty may further overshoot our upside scenario of 10,000 for end-2017.

1:44 PM

Reliance Nippon IPO oversubscribed within five minutes on first day

The initial public offer (IPO) of Reliance Nippon Life Asset Management (RNAM) got oversubscribed 2.45 times soon after opening of bids, making it the first ever IPO to get full subscription within five minutes.

 

The IPO to raise an estimated Rs 1,542.42 crore opened on Wednesday morning and received bids for 10,48,57,278 shares against the total issue size of 4,28,40,000 shares (excluding anchor portion), as per data available with the NSE. READ MORE

1:31 PM

Top Sensex gainers and losers

Source: BSE

1:10 PM

Markets at 1pm

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,001.97	+394.63	+1.21
S&P BSE SENSEX 50	10,666.81	+78.01	+0.74
S&P BSE SENSEX Next 50	35,248.63	+285.94	+0.82
S&P BSE 100	10,688.07	+79.72	+0.75
S&P BSE MidCap	16,171.98	-9.75	-0.06

(Source: BSE)

12:57 PM

NBFCs witness selling pressure

 

Shares of 12 non-banking financial firm fell by 1.61% to 7.1% at 12:04 IST on BSE after the government pledged to inject Rs 2.11 lakh crore in state-run banks. 

 

Cholamandalam Investment and Finance Company (down 7.1%), Edelweiss Financial Services (down 5.94%), Indiabulls Housing Finance (down 4.23%), Bajaj Finserv (down 3.45%), Mahindra & Mahindra Financial Services (down 3.1%), Manappuram Finance (down 2.97%), Bajaj Finserv (down 2.95%), IIFL Holdings (down 2.56%), Shriram Transport Finance Company (down 2.42%), LIC Housing Finance (down 2.4%), Muthoot Capital Services (down 1.88%) and Muthoot Finance (down 1.61%), edged lower.

12:32 PM

Nifty Infra index hits 7-year high after govt announced Bharatmala project

 

Shares of infrastructure companies were in focus with the Nifty Infrastructure index hitting nearly seven-year high on the National Stock Exchange (NSE), after the Cabinet clears Rs 7 lakh crore Bharatmala project. The announcement came after market hours on Tuesday.

 

Larsen & Toubro (L&T), NCC, IRB Infrastructure, GMR Infrastructure, Siemens, Engineers India and Bharat Heavy Electricals Limited (BHEL) from the Nifty Infrastructure index were trading higher by upto 6% on the NSE.

 

KNR Constructions, Ashoka Buildcon, Sadbhav Engineering, Simplex Infrastructures and Gayatri Projects from the non-index stocks were up in the range of 5% to 9%. READ MORE

12:14 PM

RCom nears record low on talk of closure of DTH business 

11:53 AM

Tepid debut: GIC Re falls on listing

 

Shares of General Insurance Corporation of India listed at Rs 857.50 on the National Stock Exchange, lower by 7 percent compared with issue price of Rs 912. The tepid debut comes despite the company raising  Rs 11,372 crore from its IPO. The GIC issue was sold between October 11 and October 13 and was subscribed 1.38 times.

 

GIC Re’s issue is the third biggest in the domestic markets after Coal India and Reliance Power. Coal India had raised Rs 15,470 crore in October 2010 and Reliance Power raised Rs 11,700 crore in 2008. Last month, two insurance companies, SBI Life and ICICI Lombard, had raised Rs 8,400 crore and Rs 5,700 crore respectively through  IPOs. READ MORE

11:39 AM

HUL Q2 results out today: Here's what brokerages have to say

 

Hindustan Unilever (HUL) is likely to report its September-quarter earnings later in the day today. The numbers will also be a reflection of how well the FMCG major has recovered from the recent GST turbulence.

 

For the quarter ended June 2017, HUL had posted flat volume growth as its trade network had begun destocking in June anticipating the new tax in July.

 

Click Here to find what brokerages expect from HUL numbers due today:

11:25 AM

Govt's recapitalisation plan: Yield hardens on benchmark govt bond in early trade

 

The yield on the government's 10-year paper, benchmark paper, hardened by three basis points in opening trades, seeking further clarity on the recapitalisation plan.

 

The bond yield on the 10-year paper was ruling at 6.80-81 per cent range, according to data from Clearing Corporation of India.  

 

On Tuesday, the yield on benchmark 10-year bonds had eased to 6.78 per cent on Tuesday as against a close of 6.80 per cent on Monday, according to ICICI Bank report. READ MORE

11:06 AM

Nomura on PSU bank recap, Bharatmala project

 

In our view, of all the measures announced, the larger-than-expected recapitalisation commitment to banks is growth positive, though it does have fiscal implications. The exact impact of the recap bonds on the fiscal deficit has not yet been clarified by the government, which stated that it depends on who issues the bonds, the modalities of which have not yet been finalised. Our bias is that the recap bonds will be shown as a below-the-line item and so will not have a direct bearing on the headline central government fiscal deficit, except the additional interest payments on these bonds. However, these recap bonds will add to the stock of government debt.

 

While the government is non-committal on this year's fiscal deficit target, we expect the government to announce a fiscal slippage to 3.5% of GDP in FY18 (vs. its target of 3.2%) sometime in December, because of its front-loaded spending and lower revenues. Finally, Bharatmala and other capex projects (railways, affordable housing) are positive for the medium term, but we do not expect them to influence near-term growth materially because of execution lags.

11:04 AM

Markets hold on to gains

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,884.68	+277.34	+0.85
S&P BSE SENSEX 50	10,649.88	+61.08	+0.58
S&P BSE SENSEX Next 50	35,277.61	+314.92	+0.90
S&P BSE 100	10,675.09	+66.74	+0.63
S&P BSE MidCap	16,234.04	+52.31	+0.32

(Source: BSE)

11:04 AM

Morgan Stanley on bank recapitalisation

 

In the near term, all the SOE bank stocks are likely to go up meaningfully. However, we look for banks that will sustain this performance. This move will help corporate lenders in two ways: 1) breaking the NPL cycle and 2) removing the possibility of a larger SOE bank being asked to acquire an undercapitalised smaller SOE bank.

 

We believe that the biggest beneficiary of this move, on a sustained basis, will be SBI: We double upgrade our rating to overweight (OW). Smaller SOE banks – the stocks should do well in the near term, but it may take a long time to get ROEs to increase to double digits.

The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in New York, New York January 20, 2015. REUTERS

10:48 AM

Geojit on Steel Authority of India 

 

Rating – Hold 

CMP - Rs 62                                

Target Price - Rs 65

 

The company is ailing with structural issues given its high cost structure and weak product mix. Further, we expect the company to continue to report losses at net level in FY18E and to be only marginally profitable in FY19E owing to higher depreciation and interest costs led by huge capacity expansion. We believe steel prices to remain firm in the near term.

10:48 AM

Edelweiss on Infosys Q2FY18 results

 

Commentary on key issues: 1) CEO search is on track; 2) no merit in allegations of wrongdoing in acquisition of Panaya & severance payment to former CFO; and 3) design, consulting and technology services portfolio will continue to determine strategic direction. We believe, leadership vacuum is the key challenge for revenue growth and appointment of CEO is crucial for the stock’s rerating. Maintain ‘HOLD’ with target price of Rs 1,010.