Markets extend gains for 4th day; Sensex up 118 pts, Nifty ends at 10,326

All that happened in Tuesday's trade

3:51 PM

Anand James, Chief Market Strategist, Geojit Financial Services

 

Positivity in global peers and buoyancy in the pharma sector following USFDA clearances helped extend yesterday’s gains, but profit booking in the recent outperformers capped any further gains. Anticipations on further list of stressed assets should keep banking stocks in focus, in view of provisioning required.

3:50 PM

Sectoral trend 

Source: NSE

3:40 PM

Sensex heatmap at close 

Source: BSE

3:38 PM

Markets at close

 

The S&P BSE Sensex ended at 33,478, up 118 points, while the broader Nifty50 settled at 10,326, up 28 points. 

S&P BSE SENSEX	33,478.35	+118.45	+0.36
S&P BSE SENSEX 50	10,765.23	+34.51	+0.32
S&P BSE SENSEX Next 50	35,708.16	+63.81	+0.18
S&P BSE 100	10,793.18	+32.11	+0.30
S&P BSE Bharat 22 Index	3,738.41	-13.43	-0.36

Source: BSE

3:22 PM

Tencent surpasses Facebook in market value

 

China's social media and video game giant Tencent overtook Facebook in market value today as investors sent the company soaring to the top five list of the world's biggest firms.

 

Tencent's shares, traded in Hong Kong, have doubled in value this year as the tech company's earnings have repeatedly outmatched analysts' expectations. READ FULL REPORT

3:19 PM

Top five Nifty losers in last leg of trade

Source: NSE

3:08 PM

Buzzing stocks

 

Shares of six auto ancillaries companies – ABC Bearings, Automobile Corporation of India, Bharat Gears, Bharat Seats, Minda Industries and Timken India – hit their respective new highs on Tuesday.  These companies reported strong results for the quarter ended September 2017 (Q2FY18).

 

The aggregate net profit of these 6 companies increased by 65% to Rs 132 crore in Q2FY18 against Rs 80 crore in the same quarter last year. READ MORE

2:58 PM

Vedanta set to overtake Aditya Birla group as largest aluminium maker

 

Anil Agarwal-owned Vedanta Ltd is poised to overtake Aditya Birla group as the largest producer of aluminium in the country in the current fiscal.

 

Vedanta, which produced 0.96 million tonne of aluminium across its two facilities in Odisha and Chhattisgarh, is on course to clock an annual output of 1.6 million tonne this year. READ FULL REPORT

2:51 PM

HDFC Securities report on Strides Shasun

 

In another business restructuring, Strides Shasun (STR) sold its India-branded business to Eris Life Sciences, for a consideration of Rs 5bn. The business contributed only ~5% to the total topline in FY17, and would have required significant investment to scale it up further. This is the second such business rationalisation by STR in FY18, along with the hive-off of the commodity API business. We believe that these divestments would help narrow STR’s focus on the high potential business segments, i.e. the US and Australia, where investments are now complete, and strong growth is expected to kick-in over FY18-20E. At ~16x/12x FY19E/FY20E EPS, STR is available at attractive valuations. With debt expected to drop by ~Rs 8bn in FY19E (32% of Sep-17 net debt) owing to these divestments, we find more comfort with our FY19/20E earnings estimates. On the back of the launches of gLovaza and potassium citrate in the US, and an expected string of approvals over the next 12 months (new GDUFA guidelines), mgt has guided for a ~US$ 50mn/qtr rev run-rate for the US business from 4QFY18 (v/s our est. of US$ ~38mn). We believe that this is an opportune time to invest in STR, with strong sequential improvement likely from 2HFY18. Re-iterate BUY with a TP of Rs 1,200 (18x Sep19E + Rs 100/sh for Solara + Rs 30/sh for Biopharma).

2:35 PM

Tea shares surge

 

Shares of tea companies have rallied up to 17% on the bourses in intra-day trade on expectations that lower production may boost tea prices.

 

Rossell India, Goodricke Group, McLeod Russel India, Warren Tea, Jay Shree Tea Industries, Harrisons Malayalam and Tata Coffee among few were trading higher by more than 4% on the BSE. On comparison, the S&P BSE Sensex was up 0.52% at 33,535 at 01:13 PM. READ MORE

2:21 PM

Top Nifty gainers 

Source: NSE

1:48 PM

Vadilal family drama

 

Even as the eight-decade-old Gujarat-headquartered ice-cream maker Vadilal Industries Ltd (VIL) was getting its act together, the fallout of an old family feud threatens to throw a spanner in the company’s future growth plans. READ FULL REPORT

1:25 PM

Moody's explains why India deserved a rating upgrade

 

The report seeks to answer questions such as the drivers of the upgrade, the reason for the upgrade amid the current economic slowdown,  how does the recently announced bank recapitalization plan help Indian banks and so on.  Moody's expects India's continued progress on economic and institutional reforms will, over time, enhance India's high growth potential. READ FULL REPORT

1:07 PM

Market Check at 1 pm

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,542.01	+182.11	+0.55
S&P BSE SENSEX 50	10,785.67	+54.95	+0.51
S&P BSE SENSEX Next 50	35,814.01	+169.66	+0.48
S&P BSE 100	10,815.40	+54.33	+0.50
S&P BSE Bharat 22 Index	3,749.04	-2.80	-0.07

12:46 PM

Corporate India is still a global minnow in terms of profits

 

A strong rally on Dalal Street has made India one of the biggest in terms of market capitalisation globally but corporate India is still a global minnow in terms of actual profits. During the 12 months ending September this year, the combined net profit of BSE 500 companies at around $69.5 billion was a fifth of the combined net profit of China’s 300 biggest companies and a ninth of that at the euro zone’s 500 biggest listed companies. The gap with America is more. READ MORE

12:30 PM

Buzzing Stock

Satin Creditcare Network gained 3.81% to Rs 339.25 on BSE after the company said that National Housing Bank has granted certificate of registration to the company's wholly owned subsidiary.

12:15 PM

Bulls make a comeback in Shriram Transport Finance

 

The share price of Shriram Transport Finance has gained about 19 per cent in the past one month, far higher than the 1.5–3 per cent rise on the BSE Sensex and Nifty. 

 

The price movement is not only an indicator of change in sentiment but also reiterates the long-term comfort investors have had with the stock. The deal with IDFC Limited, called off about a month ago, came as a major relief as it was said to be value depletive for its shareholders. READ MORE

11:58 AM

Top Sensex gainers and losers

Source: BSE

11:44 AM

This stock has surged 43,000% in the past 10 years

 

Cooling is hot business for this company. A change of business philosophy coupled with growing demand for its products have generated a fortune for the shareholders of this company over the last 10 years. A quick analysis of companies in the BSE 500 group in the last 10 years shows that shares of Symphony have surged a massive 43,000% – from Rs 3.64 on November 20, 2007 to around Rs 1,567 levels now, according to ACE Equity data.  READ MORE

11:33 AM

Market Check at 11:30 am

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,539.92	+180.02	+0.54
S&P BSE SENSEX 50	10,791.45	+60.73	+0.57
S&P BSE SENSEX Next 50	35,868.56	+224.21	+0.63
S&P BSE 100	10,823.08	+62.01	+0.58
S&P BSE Bharat 22 Index	3,753.72	+1.88	+0.05

11:21 AM

EV foray to keep Maruti ahead in the race

 

The Maruti Suzuki stock hit a new 52-week high after the company’s Japanese parent, Suzuki, on Friday formally unveiled plans to introduce electric vehicles (EVs) in India by 2020 with technical support from Toyota. Currently under an agreement with the parent, Maruti already sources gasoline/diesel cars produced by Suzuki in India.

 

The pact means Suzuki will manufacture the EVs in collaboration with Toyota (to be sold by Maruti) and also develop the entire EV ecosystem, including charging stations, here. READ MORE

11:08 AM

Dr Reddy's turns volatile after receiving EIR from USFDA

 

Dr Reddy’s Laboratories moved higher by 10% to Rs 2,494 on the BSE at 10:16 AM; after the company said its facility at Vishakhapatnam received Establishment Inspection Report (EIR) from the US health regulator, but the inspection has not closed.

 

The stock erased most of its gain and was trading 3% higher at Rs 2,498 on the BSE and NSE at 10:42 AM. The trading volumes on the counter more than doubled with a combined 1.07 million shares changed hands in first one-and-half hour of trading on both the exchanges.

11:07 AM

WhatsApp earnings leak: Sebi must monitor insider trading on social media

 

A recent Reuters news report identifies a dozen messages that accurately predicted  Q2 earnings patterns (and a bonus announcement in one case) for specific listed stocks. 

 

Given the accuracy of some of the messages cited by the report, the regulator, Sebi, should definitely take cognizance of the situation and carry out an investigation.  If it does discover that any of these messages originated from insiders, Sebi has the power to hand out prison sentences, or fines, or both.

 

More broadly, Sebi should try to create means of observing this medium and others like it. While Whatsapp is the most popular of the encrypted instant message platforms, there are several others like it. Other market regulators such as America's SEC also have to deal with the issue of price-sensitive information being passed through such mediums. 

10:29 AM

Logistics shares gain on infrastructure status; Gati, VRL hit 52-week highs

 

Shares of logistics companies were trading higher by up to 6% on the BSE in early morning trade after getting infrastructure status.

 

Gateway Distriparks, Gati, Sical Logistics, VRL Logistics, Transport Corporation of India, Lancer Container Lines, Allcargo Logistics and Mahindra Logistics were up in the range of 2% to 6% on the BSE. READ MORE

10:15 AM

Yellen announces resignation; will leave Fed once successor sworn-in

 

Janet Yellen has submitted her resignation from the Federal Reserve board to President Donald Trump, announcing that she will leave the board when her successor is sworn in as Fed chairman.

 

In a letter to the president, Yellen said yesterday she would "do my utmost" to make sure that there is a smooth transition to Jerome Powell, who was tapped by Trump on November 2 to become the next Fed leader after the president decided not to offer Yellen a second term. READ MORE

10:05 AM

Buzzing Stock

ARSS Infrastructure Projects rose 14.23% to Rs 55 on BSE after the company said it received a work order worth Rs 87.09 crore from Rail Vikas Nigam.

9:55 AM

Vedanta set to overtake Aditya Birla group as largest aluminium maker

 

Anil Agarwal-owned Vedanta Ltd is poised to overtake Aditya Birla group as the largest producer of aluminium in the country in the current fiscal.

 

Vedanta, which produced 0.96 million tonne of aluminium across its two facilities in Odisha and Chhattisgarh, is on course to clock an annual output of 1.6 million tonne this year.

 

As against this, the combined capacity of Aditya Aluminium and Hindalco, subsidiaries of Birla group, across four locations in Odisha, Madhya Pradesh and Uttar Pradesh is 1.32 million tonne. The group, as a whole produced 1.26 million tonne aluminium in FY17. READ MORE

9:51 AM

Domestic institutions lend their weight as anchors in IPOs

 

Domestic institutional investors, particularly mutual funds, have played an active role as anchor investors in initial public offerings (IPOs) this year.

 

They have invested nearly 50 per cent of the Rs 9,800 crore of anchor money invested in IPOs this year, data from Prime Database shows. 

 

The anchor book was driven mainly by foreign players in the last IPO cycle of 2009 and 2010, with domestic players investing a mere 11 per cent of the Rs 1,674-crore anchor book in 2009.  READ MORE

9:31 AM

Reliance Industries gains 2% after it raised $800 million by selling 10-year bonds, making it the first company to take advantage of India’s rating upgrade last week. 

9:22 AM

Sectoral Trend

Source: NSE