MARKET WRAP: Sensex rises 97 pts, Nifty settles at 10,348 as banks rally

Among sectoral indices, the Nifty Bank index settled 0.7 per cent higher led by a rise in YES Bank and State Bank of India (SBI).

3:39 PM

Sectoral gainers and losers on NSE

3:37 PM

S&P BSE Sensex: Top gainers & losers

3:36 PM

Market at close

 

The S&P BSE Sensex closed 97 points higher at 34,474 while the broader NSE's Nifty50 index settled at 10,348, up 32 points.

3:16 PM

Gold slips as dollar gains after China eases policy

Gold fell on Monday as the dollar firmed after China's central bank eased its domestic policy to support the economy amid concerns that an escalating trade dispute with the United States could hurt growth.

Spot gold was down 0.6 per cent at $1,195.61 an ounce. US gold futures fell 0.5 per cent to $1,199.8 an ounce.

2:59 PM

Time to increase gold allocation in your portfolio this Dussehra

 

This Dussehra can be different for your gold investment. Analysts are increasingly becoming positive on the outlook of gold over the next few months with oil prices rising and the risks in the global economy increasing. Last week, international gold prices crossed $1,200 after Italy said it will run a higher budget deficit that threatened the European currency. The ongoing trade tensions between the US and China has been increasing in impacting currencies. Read More

 

2:44 PM

NBFCs slip as RBI plans to strengthen norms; Edelweiss Financial cracks 13%

 

Shares of a few non-banking financial companies (NBFCs) took a hit on Monday after the Reserve Bank of India (RBI) said on Friday it was looking at strengthening guidelines for such entities to avoid rollover risks. Dewan Housing Finance Corporation Ltd's stock fell as much as 12.3 per cent, while that of Edelweiss Financial Services Ltd tumbled as much as 13.9 per cent. Shares of JM Financial Ltd and IIFL Holdings Ltd declined as much as 11.1 per cent and 11 per cent, respectively. Read More

2:29 PM

The exchange rate is the shock absorber

Foreign capital inflows finance the gap between investment and savings. The exchange rate is the price that adjusts to ensure that the capital inflow is exactly as large as is required. An important part of the capital flows into India is debt flows.

 

When the perceived credit risk of borrowing entities worsens, overseas debt investors become uncomfortable, and there is a shortfall of inbound capital. Rupee depreciation makes Indian assets more attractive, and compensates for deterioration in domestic credit quality. READ MORE

2:14 PM

RBI gives nod for True North to pick up 26% stake in Federal Bank's NBFC

 

The Reserve Bank of India (RBI) has given its nod to private Equity firm True North to pick 26 per cent stake in Fedbank Financial Services Ltd (Fedfina), a subsidiary of Kerala-based Federal Bank. The deal value is estimated to be around Rs 4 billion, for 26 per cent stake, while True North can further acquire additional equity shares of Fedfina, constituting up to 45 per cent of the share capital in the company. Read More

2:01 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,245.89	-131.10	-0.38
S&P BSE SENSEX 50	10,761.43	-37.49	-0.35
S&P BSE SENSEX Next 50	29,723.81	-369.32	-1.23
S&P BSE 100	10,488.35	-50.14	-0.48
S&P BSE Bharat 22 Index	3,213.44	-33.96	-1.05

(Source: BSE)

1:42 PM

DHFL skids over 16 percent

1:31 PM

Q2FY19 result preview

Profit for our coverage universe excluding volatile components such as commodities and corporate banks is likely to decelerate from 13% YoY in Q1FY19 to -1% YoY in Q2FY19. Barring IT, retail banks and NBFCs, almost all sectors are likely to witness a slowdown in profit growth. The slowdown is more pronounced in domestic auto, which is likely to post flat profit growth (versus 20% average growth over the past four years). Apart from this, growth in cement, pharma and industrials is likely to remain weak (<5%). Export auto, corporate banks, telecom and airlines are likely to report deep profit contraction

(Source: Edelweiss Securities)

1:30 PM

Axis Securities on Infosys

·         Strong deal wins in Financial services ( 32% of revenue): Growth is likely to revive from Q2 on the back of strong deal wins in the quarter (USD 446 mn) and continued momentum in tier-II and regional banks

 

·         Margin to gradually improve: Given an array of margin levers on tap (offshore mix, onsite pyramid, stronger growth in high-margin digital business, automation, operating leverage with stronger revenue growth, and INR depreciation), we expect margin performance to gradually improve through the course of the year to the top of the guided range ( 22-24%)

 

·         North America (60% of revenue) to witness broad-based recovery: Management highlighted, growth in Financial Services is likely to pick up on the back of healthy deal wins (USD 446 mn) with strong traction in regional and tier-2 banks. Further, Retail, Energy and Utilities are also seeing strong traction which should drive better growth in FY19.

 

·         Infosys has signed a definitive agreement to acquire Fluido, a Salesforce advisor and consulting partner in Nordics. The acquisition will expand Infosys’ capabilities in key geographies like Finland (Espoo), Denmark (Copenhagen), Sweden (Gothenburg), Norway (Oslo) and Slovakia (Banská Bystrica) for services in Salesforce

 

·         We maintain a BUY with a target of Rs 794.

1:16 PM

Russia's VTB Group may bid for the debt-ridden Essar Steel alone

 

Russia's VTB Group is likely to bid alone for the debt-ridden Essar Steel. Earlier the Russian bank was making a plan to take over the company via Numetal Mauritius - which had a Ruia family interest. According to the Supreme Court order, both Numetal and ArcelorMittal will have to first clear all old dues and then bid for Essar Steel. Read More

1:05 PM

NEWS ALERT

Rupee breaches 74/$ level for second time

1:00 PM

NBFCs under pressure; DHFL, Edelweiss Financial fall over 10%

 

Shares of non-banking financial companies (NBFC) were reeling under pressure falling by up to 11% on the BSE after the Reserve Bank of India (RBI) on Friday said that it will revise NBFC asset-liability norms over borrowing-lending mismatch. Dewan Housing Finance Corporation (DHFL), JM Financial, Edelweiss Financial Services, Centrum Capital, Repco Home Finance, Reliance Home Finance, Aditya Birla Money and Indiabulls Ventures have fallen in the range of 5% to 11% on the BSE in intra-day trade on Monday. In comparison, the S&P BSE Sensex was up 0.37% at 34,502 points at 12:22 pm. Read More

12:46 PM

Devangshu Datta Don't rush to invest: Good Q2 results may help improve sentiment

Reflexivity is an idea that George Soros drew from philosophy, and adapted to explain market sentiment. The philosopher Karl Popper used reflexivity to explain feedback loops that influence and reinforce social situations. For example, movies versus real-life.

 

Onscreen behaviour reflects prevailing fashions, social attitudes, musical tastes, etc. But audiences are influenced by what they watch onscreen, and often adopt fashions and behaviour drawn from the pictures. This is an example of reflexivity - movies and real-life influence each other. READ MORE

12:31 PM

Two Indian companies to buy Iranian oil in November, says Pradhan

 

Two Indian companies have placed orders to buy Iranian oil in November, oil minister Dharmendra Pradhan said on Monday, adding that India did not yet know if it would be granted a waiver from US sanctions on Iran. Read More

12:22 PM

YES Bank gains 5% as bank names experts to look for new managing director

 

Shares of YES Bank have moved higher by 5.5% to Rs 218 on the BSE after the board of private sector lender inducted TS Vijayan, former chairman of Insurance Regulatory and Development Authority of India (IRDAI) and Life Insurance Corporation of India (LIC), and OP Bhatt, former CMD of State Bank of India (SBI), as external experts in the committee. Read More

12:15 PM

Q2FY19 preview: NBFCs' medium-term challenges to stay; not yet time for buy

 

Non-banking financial companies (NBFCs) in India or across the globe have a simple business model — borrow from banks or capital markets in the form of non-convertible debentures (NCD) or (commercial papers) CPs or any other financial instruments and lend to end users. While the regulator/nodal agencies like RBI/ NHB (National Housing Bank) also lend to the set of finance companies, a large part of the borrowing has to be done from the markets to meet their business growth. Read More

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,525.90	+148.91	+0.43
S&P BSE SENSEX 50	10,839.39	+40.47	+0.37
S&P BSE SENSEX Next 50	30,180.15	+87.02	+0.29
S&P BSE 100	10,576.68	+38.19	+0.36
S&P BSE Bharat 22 Index	3,243.77	-3.63	-0.11

11:45 AM

New FPI route will appeal to long-term debt investors, says experts

 

The proposed new route for foreign portfolio investor (FPI) debt investments will be appeal to long-term investors and give regulatory authorities a better handle on flows, said experts. The voluntary retention route (VRR) proposed by the Reserve Bank of India (RBI) on Friday does away with regulatory restrictions, that are otherwise applicable, provided FPIs commit to lock-in two-thirds of their investment for a minimum three years.

 

Investments under the new route will be over and above the existing FPI limits set for government and corporate bonds. READ MORE

11:30 AM

IL&FS effect: Tighter regulations may force smaller NBFCs to shut

 

The fastest pace of growth since 2013 at India’s non-bank financiers is about to come to a grinding halt

 

A spate of money market defaults by Infrastructure Leasing & Financial Services Ltd. has put the spotlight on non-bank finance companies. With banks struggling with bad loans and low capital buffers, non-bank lenders had rushed to tap demand for long-term financing to build roads, power plants and homes. But these lenders borrowed from the short-term money markets to finance long-term loans, raising the risk of defaults should cash flows take a hit. READ MORE

11:15 AM

BSE Auto index hits 21-month low; Bajaj Auto, TVS Motor hit 52-week low

 

Shares of automobile companies continued trading lower with the S&P BSE Auto index hitting the 21-month low on concern of the decline in volumes, on the back of higher product prices and running costs. At 10:38 am; the S&P BSE Auto index was trading 0.52% lower at 19,871, as compared to 0.09% decline in the S&P BSE Sensex. The auto index hit an intra-day low of 19,627, recorded its lowest level since December 27, 2016. Read More

11:00 AM

How India lost 'best-performing stock mkt in Asia' tag in less than a month

 

The best-performing stock market in Asia for much of this year has lost that title in less than a month. As the S&P BSE Sensex Index sank into a correction Friday, posting its biggest weekly plunge in more than two years, investors began paying up to hedge against more declines. The cost of bearish NSE Nifty 50 Index options jumped to its highest level since August of last year relative to the price of bullish contracts, data compiled by Bloomberg show. Read More

 

10:45 AM

Fuel price cut may dent EBITDA of IOCL, HPCL, BPCL by Rs 65 bn: Moody's

 

The recent cut in petrol and diesel prices by Rs 2.50 by the Centre is estimated to reduce the combined EBITDA margins of IOCL, HPCL and BPCL by Rs 65 billion during current fiscal, rating agency Moody's said Monday. It also said on October 4, the government reduced petrol and diesel retail selling prices by Rs 2.50 per litre, through the lowering of excise duties by Rs 1.50 per litre and asking the country's oil marketing companies (OMCs) to absorb the remaining Rs 1 per litre ($2.1 per barrel) price cut. Read More

10:30 AM

OMCs recover after two-day sell-off; HPCL jumps 6%, IOCL, Gail gain 4% each

 

Shares of oil & gas and state-run oil marketing companies (OMCs) rose in the early morning deals on Monday, after witnessing heavy sell-off in the last two trading sessions. At 09:52 am, Hindustan Petroleum Corporation (HPCL) was trading nearly six and a half per cent higher at Rs 176 a piece on BSE while Bharat Petroleum Corporation (BPCL) was trading at Rs 274, up 3.32 per cent. Shares of IndianOil was trading over 4 per cent higher at Rs 123.05. Read More

10:20 AM

Aavas Financiers makes weak debut

 

Shares of housing finance company Aavas Financiers has made a weak debut, as the scrip got listed at Rs 750, 9% below its issue price of Rs 821 on the National Stock Exchange (NSE) on Monday.

 

The stock opened 8% lower at Rs 758 on the BSE, It dipped 14% to Rs 710 against its issue price post listing. READ MORE

10:10 AM

IL&FS group shares locked in lower circuit

 

Shares of three listed IL&FS group companies are locked in their respective lower circuits on the BSE after the rating agency Brickwork Ratings downgraded the rating for the non-convertible debentures (NCDs).

 

IL&FS Engineering and Constructions (IECCL) and IL&FS Transportation Networks (ITNL) are frozen 10% lower circuits at Rs 22.70 and Rs 27.25, respectively, while IL&FS Investment Managers down 5% at Rs 9.81 on the BSE. There were only sellers seen on these counters. READ MORE

10:00 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,341.84	-35.15	-0.10
S&P BSE SENSEX 50	10,774.47	-24.45	-0.23
S&P BSE SENSEX Next 50	29,899.75	-193.38	-0.64
S&P BSE 100	10,508.07	-30.42	-0.29
S&P BSE Bharat 22 Index	3,245.74	-1.66	-0.05

9:43 AM

Interview of the day This is a good time to invest in equity markets: Chandresh Kumar Nigam

 

Rising oil prices and a sliding rupee have rattled the markets over the past few weeks. CHANDRESH KUMAR NIGAM, managing director & chief executive officer, Axis Asset Management Company, tells Puneet Wadhwa that the recent fall presents an opportunity to investors who are yet to invest or have under-invested in equities. Read More

Chandresh Kumar Nigam Managing director & chief executive officer, Axis Asset Management Company