Markets end at record highs; Nifty closes above 10,200 for first time ever

All that happened in Monday's trade

4:04 PM

Jayant Manglik, President, Retail Distribution, Religare Securities 

 

Nifty opened with an uptick and managed to settle with decent gains amid volatility. Buoyancy on the local front helped the index to make a firm start as participants took note of RIL's results and contraction in trade deficit figure. Some support also came in with further strengthening of rupee against the dollar combined with favorable global cues. However, traders really had a tough time on specific stocks due to excessive volatility. On sectoral front, noticeable buying was witnessed on metal, pharma, realty and auto stocks while PSU banks remained under pressure. 

 

We reiterate our positive view on Nifty and expect 10,400 to be tested shortly. Any intermediate pause or decline should be considered as buying opportunity. Volatility is not new during the earnings season, so traders should focus on position management also. 

3:48 PM

Sectoral trend at close 

Source: NSE

3:46 PM

Sensex heatmap at close

Source: BSE

3:44 PM

Bharti Airtel top gainer

Bharti Airtel hogged limelight with the stock rallying nearly 6% to Rs 457, its nine-year high. The telecom giant last week announced its decision to combine operations with Tata Teleservices and Tata Teleservices (Maharashtra). 

3:36 PM

Markets at close

The S&P BSE Sensex ended at 32,633, up 201 points, while the broader Nifty50 settled at 10,230, up 63 points. 

3:32 PM

Fundraising via IPOs at record high; crosses Rs 40,000 crore mark in CY17

 

With the initial public offering (IPO) of General Insurance Corporation of India (GIC Re) getting fully-subscribed, fund-raising through the IPO route has hit a record high so far in 2017, crossing Rs 40,000 crore mark. Thus far in the calendar year 2017 (CY17), 28 companies have collectively mopped up Rs 44,853 crore through IPOs, surpassing its previous high recorded seven year ago. In entire CY10, as many as 64 companies had raised Rs 37,535 crore via IPOs. CLICK HERE FOR THE FULL STORY

The average Sensex return for these months is a negative 1.55%

 

3:26 PM

Buzzing stock

Visa Steel surged 19.78% to Rs 21.50 on BSE after the Reserve Bank of India hiked foreign investment limit in the company to 74% from 24%.

3:16 PM

European markets

 

European markets edged slightly higher on Monday morning as investors monitored the latest in political news coming out of Austria, Spain and the UK.

 

The pan-European STOXX600 added 0.2%, while Spain's IBEX was down 0.7%. The MSCI world equity index, which tracks shares in 47 countries, was up 0.1%, fueled by the earlier gains in Asia and those in Europe.

3:02 PM

Markets check

At 3:00 pm, the S&P BSE Sensex was trading at 32,641, up 208 points, while the broader Nifty50 was ruling at 10,233, up 65 points. 

2:56 PM

Competition in telecom sector to remain intense: Moody's

 

Competition in the Indian telecom sector is expected to remain intense over 12-18 months despite consolidation as leading operators look to safeguard their turf, according to Moody's.

 

"While consolidation activity is positive for the industry in the long-term, we still expect competition to remain intense over the next 12-18 months as leading operators - like Bharti, Vodafone India and Reliance Jio Infocomm Limited - look to protect and grow market share," it said. READ MORE

2:42 PM

Federal Bank hits record high post Q2

 

Federal Bank hit a new high of Rs 124, up 6% on the BSE after the bank reported 31% year on year (yoy) growth in net profit at Rs 264 crore in September quarter (Q2FY18), on back of higher interest income. It had posted a net profit of Rs 201 crore in the same quarter last fiscal. READ FULL REPORT

2:22 PM

Rupee trades strong vs dollar

 

The rupee gained for a sixth consecutive session, partly as inflows into debt markets remained strong, rising to as much as 64.69 per dollar, its strongest since September 21.

1:59 PM

Stock recommendations by Angel Broking 

1:43 PM

Bulls make a case for book value

 

The bulls have now turned their attention away from corporate earnings and its derivative, the price-earnings (P/E) multiple, to valuations based on book value or net worth per share. While the P/E multiple of the market is near an all-time high, valuations still look reasonable on a price-to-book (P/B) value basis, say experts. READ FULL ANALYSIS

1:33 PM

ICRA on WPI data

 

In line with our expectations, the WPI inflation corrected sharply to 2.6% in September 2017 from 3.2% in the previous month. The correction in vegetable prices was the chief driver of the decline in primary food inflation to 2.0% from 5.8%. A favourable base effect aided the moderation in inflation for fuel and power, despite the recent rise in prices of petrol, diesel, ATF and other fuels. While global crude oil prices remain firm, which would impact the WPI inflation, the recent cut in central excise duty on petrol and diesel by Rs. 2/litre, as well as reduction in VAT on these fuels by some state governments, would dampen inflation for mineral oils in October 2017.

1:23 PM

Sectoral trend in noon deals

Source: NSE

1:04 PM

Prabhudas Lilladher on IndusInd Bank

 

IndusInd Bank (IIB) concluded its much speculated merger with Bharat Financial Inclusion (BFIL) with deal consideration of 639 shares of the IIB for every 1,000 shares of BFIL which implies a dilution of 14.7% for IIB shareholders at CMP and implies a premium of 12‐13% for BFIL shareholders on CMP. 

 

The bank will continue existing operations of BFIL under a wholly owned subsidiary, though assets will move to IIB’s balance sheet. We see the deal slightly expensive, though it has positive bearing on return ratios in near term. In the medium to long term we see positive outcome as strong penetration of BFIL in rural with robust technology platform will help IIB cross sell both liability & asset products. We have retained our estimates (pre‐merger) and retain “BUY” with target price of Rs 1,952 based on 3.9x Sep‐19 ABV (pre‐merger).

12:47 PM

Bharti Airtel hits two-year high

 

Bharti Airtel has hit a two-year high of Rs 441, up 2% in intra-day trade, extending its past four day gain on the BSE, after the company on Friday, October 13, said it had agreed with Tata  Teleservices Limited (TTSL) and Tata Teleservices Maharashtra (TTML), to combine their consumer mobile business (Tata CMB) with Bharti. READ MORE

12:16 PM

Will equities outshine other asset classes in Samvat 2074?

 

Equities have had a good run in Samvat 2073, with the Nifty rising about 16 per cent until October 9, 2017. Debt markets have given muted returns as the benchmark 10-year yield has remained flat at 6.7-6.8 per cent between the two dates. Interest rates for fixed income investors have also softened through the year. Even gold prices have not moved much over this period. Realty prices have either remained flat or softened. READ MORE

12:10 PM

September WPI at 2.6%

12:01 PM

Markets at Noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,569.59	+136.90	+0.42
S&P BSE SENSEX 50	10,600.58	+41.08	+0.39
S&P BSE SENSEX Next 50	34,769.40	+135.67	+0.39
S&P BSE 100	10,608.73	+41.19	+0.39
S&P BSE MidCap	15,985.36	+18.67	+0.12

(Source: BSE)

11:59 AM

Buzzing stock 

 

Bharat Financial Inclusion hit its 52-week high of Rs 1,047, up 4.4%, while IndusInd Bank dipped 3% to Rs 1,700 on the BSE in intra-day trade after the board of respective companies approved a merger of the two entities to create a stronger and more sustainable platform for financial Inclusion. READ MORE

11:56 AM

Morgan Stanley view on Asian economies

 

Japan will, in our view, generate the strongest earnings growth of any major region this year (+38%). The multiple has moved up since our last Almanac, but it is still the only major region to have de-rated in forward P/E terms since the end of 2016. China and Hong Kong earnings beat is much stronger than APxJ EM average, prompting investors to continue to reduce their Underweight positions. India's structural reduction in inflation and improved current account are leading to a secular reduction in interest rates, driving domestic flows toward equities. Weak GST implementation is the latest shock to hit near-term GDP growth, although some high-frequency data is starting to reverse.

We therefore continue to prefer Japan to the broad EM/AxJ universe. We also stay overweight China and India and UW South Africa and Australia ahead of the next update of our country model; noting India's shortfall in GDP growth relative to our expectations in recent quarters but recent signs of future improvement.

11:44 AM

Broader markets

Broader markets were up marginally with the BSE Midcap and the BSE Smallcap indices gaining 0.1% each. 

11:43 AM

Markets check 

At 11:40 am, the S&P BSE Sensex was trading at 32,538, up 105 points, while the broader Nifty50 was ruling at 10,202, up 35 points. 

11:04 AM

Nomura on IndusInd Bank

 

While the acquisition of an MFI business at +5x FY17 book is not cheap on an absolute basis, the finalised swap ratio will not be dilutive for IndusInd Bank either on a FY19F EPS or a book basis, on our calculations. We remain positive on IndusInd Bank and keep our target price of Rs 1,850 (implying 3.6x Sep-19F book of Rs 509)

11:03 AM

Edelweiss on MCX

 

Multi Commodity Exchange’s (MCX) Q2FY18 earnings were stable and on expected lines (PAT at INR283mn). The quarter was characterised by good revival in volumes—ADTV up >17% QoQ (albeit, still below historical run rate)—but lower realisations restricted operating revenue growth to <13% YoY. Meanwhile, the company reported second consecutive quarter of controlled opex (flat QoQ), which bolstered earnings. This also vindicates our stance that as volume growth kicks in, MCX will reap benefit of operating leverage. 

 

Post demonetisation and GST, volumes have rebased, but post that growth has been encouraging. Additionally, structural levers such as: a) introduction of options & institutional participation; and b) shift from dabba trading post demonetisation, will provide a leg up. Overall, structural growth visibility and MCX’s leadership are envisaged to drive the stock’s further re‐rating. Maintain ‘BUY’.

10:50 AM

Diwali dhamaka: Stocks to buy in Samvat 2074

 

Markets have taken all developments – geopolitical tensions between the United States (US) and Korea, monetary policies of various central banks, outcome of US presidential election at the global level and impact of demonetisation, goods and services tax (GST) rollout back home – in their stride. During the year (Samvat 2073), benchmark indices, the S&P BSE Sensex and the Nifty 50, gained around 16% and 17%, respectively.

 

Here is a compilation of the top stocks that leading research houses and brokerages have recommended for Samvat 2074.

 

CLICK HERE TO READ MORE

10:25 AM

New kid on the block

 

Godrej Agrovet made a strong debut by listing at Rs 621, a 35% premium against its issue price of Rs 460 per share on the BSE. On the National Stock Exchange (NSE), the stock opened at Rs 616, 34% higher against issue price. READ MORE

10:04 AM

Buzzing stock 

Reliance Industries (RIL) hit a new high of Rs 890, up 1.6% on the BSE in early morning trade, after the company reported a 12.5% increase consolidated net profit at Rs 8,109 crore for the second-quarter ended September 2017 (Q2FY18) on back of higher margins from its core refining and petrochemical businesses. READ MORE DETAILS