MARKET WRAP: Sensex up 297 pts, banks, auto gain; Infy flat ahead of Q2 nos

Catch all the LIVE market action here

3:50 PM

Sectoral gainers & losers on NSE

3:49 PM

BSE Sensex: Top gainers & losers

3:20 PM

 

Future Group shares rise on reports Amazon may buy stake in Future Retail

 

Future Retail has soared 19% to Rs 518 on back of an over six-fold jump in trading volumes. A combined 2.37 million equity shares changed hands on the BSE and NSE till 02:59 PM. READ MORE

3:00 PM

ICICI Bank gets RBI clearance to appoint Sandeep Bakhshi as its MD and CEO

 

Private sector lender ICICI Bank Tuesday said the RBI has approved Sandeep Bakshi's appointment as Managing Director and CEO of the bank for three years.

 

After resignation of Chanda Kochhar, who was facing inquiry, earlier this month, the bank's board had elevated Chief Operating Officer (COO) Bakshi as the new managing director and CEO for five years until October 3, 2023, subject to regulatory and other approvals. READ MORE

 

Impact

 

2:51 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,105.47	+240.37	+0.69
S&P BSE SENSEX 50	11,064.23	+74.56	+0.68
S&P BSE SENSEX Next 50	31,324.79	+354.94	+1.15
S&P BSE 100	10,822.73	+80.30	+0.75
S&P BSE Bharat 22 Index	3,368.16	+30.74	+0.92

2:45 PM

How investors view Emerging Markets

 

I had the opportunity to spend last week in the US, meeting up with a bunch of global investors. A fascinating week amidst the turmoil roiling global markets. Some of the takeaways for me personally were as follows: 1. There is tremendous pain vis-a-vis Emerging Market (EM) assets.

 

Most of the smartest and most-sophisticated investors have been reducing weights in US equities and increasing EM and non-US positions over the last few years. This has not worked. Investors have taken it on the chin this year with a dramatic divergence opening up between US and EM equities. READ MORE

2:30 PM

CESC: Analysts see benefits even in part demerger, stock price recovers

 

The long-awaited value-unlocking in CESC is finally taking place and bringing joy to investors as the stock price starts recovering. Since the multiple businesses under a single umbrella resulted in holding company discount, CESC’s decision on separate listing of all businesses should result in value unlocking for investors. Before the company’s announcement of restructuring last year, the stock had seen highs in January’18 but it thereafter trended lower. Read More

2:15 PM

Leading foreign bank to drag Kwality to NCLT over Rs 12 billion default

KKR-backed dairy major Kwality Ltd set to be taken to National Company Law Tribunal (NCLT) over Rs 12 billion loan default. According to a report published in Hindu Businessline, the Kolkata-headquartered company has been taken to the tribunal by a leading foreign bank that will be joined by others soon after the case is filed, on October 16. According to sources, Kwality has debt of about 20 billion, of which 80 per cent has gone bad following poor business decisions, reported The Hindu Businessline. Read More

2:00 PM

Earnings impact: Federal Bank stock up 6% post Q2 earnings

 

Federal Bank's second quarter (July-September) profit grew 0.9 per cent year-on-year to Rs 2.66 billion, impacted by sharp rise in bad loans provision. Net interest income during the quarter increased 13.7 per cent year-on-year to Rs 10.22 billion with loan growth at 25.2 per cent YoY (9.8 per cent QoQ), the bank said.

1:45 PM

HEG hits new high; stock zooms 56% in 6 trading sessions

Shares of HEG hit a new high of Rs 4,950, up 15%, extending its gains for the past one week of over 30% on the BSE, after Bank of America Merrill Lynch (BofAML) initiated coverage of the stock with a 'Buy' rating and target price of Rs 6,700. The stock surpassed its previous high of Rs 4,560 recorded on August 2, 2018. It zoomed 55% in past six trading days from Rs 3,182 on October 8, as compared to a 2% rise in the S&P BSE Sensex. Read More

1:31 PM

Infosys extends gain ahead of September-quarter results

Shares of Infosys was trading 1% higher at Rs 707 at 01:23 pm, extending its Monday’s 3% gain on the BSE, ahead of its results for the second quarter of the financial year 2018-19 (Q2FY19) today. The information technology major will announce September quarter results after market hours. Since July 13, 2018, post Q1FY19 results, Infosys has outperformed the market by gaining 8.5%, as compared 5% declined in the S&P BSE Sensex. The stock hit an all-time high of Rs 755 on October 1, 2018 in intra-day trade. Read More

1:15 PM

S&P BSE Sensex top gainers and losers

1:01 PM

Delta Corp gains 8% post September quarter results

 

Shares of Delta Corp rallied 8% to Rs 245 on the BSE in intra-day trade on back of heavy volumes after the company reported 11% year on year (YoY) growth in its consolidated net profit at Rs 481 million in September quarter (Q2FY19). It had a profit of Rs 433 million in the same quarter a year ago. The company’s revenue grew 39% at Rs 2,014 million on YoY basis. EBITDA margin shrank 720bp YoY to 38% YoY on account of contraction in the online gaming margin. Read More

12:50 PM

Banks gain ground. South Indian Bank up 13%

COMPANY	LATEST( )	CHG( )	CHG(%)	VOLUME
SOUTH IND.BANK	14.22	1.62	12.86	16384186
ICICI BANK	320.45	7.25	2.31	1409738
ST BK OF INDIA	267.55	4.20	1.59	1110094
YES BANK	247.25	1.35	0.55	800628
IDBI BANK	59.50	0.15	0.25	691408

12:49 PM

India attracted $22 bn of FDI flows in first half of 2018, says UN report

 

India attracted $22 billion of FDI flows in the first half of 2018, according to a UN report which states that the global foreign direct investment dropped by 41 per cent in the same period due to tax reforms carried out by the Trump administration.

 

The UN Conference on Trade and Development (UNCTAD) said on Monday in its 'Investment Trends Monitor' report that in South Asia, India attracted $22 billion of FDI (foreign direct investment) flows, contributing to the subregion's 13 per cent rise in FDI in the first half of the year. READ MORE

12:36 PM

Prabhudas Lilladher on Navneet Education

In our recent interaction with Navneet Education Ltd (Navneet) management highlighted that: 1) license fee conundrum is over post receipt of approval from Maharashtra State Board on 21st June 2018 2) the core publishing business is on track with impending syllabus changes (see exhibit 1) in Gujarat & Maharashtra 3) domestic stationery business is facing stiff competition from ITC but exports are gaining traction and  4) ILL transition is on track as 7 new series for standards 1 to 8 (56 titles in all) have been launched. Further, Navneet is investing in businesses of future like E-sense (digital learning venture) and school management, which will start contributing meaningfully over the next 2-3 years

12:30 PM

Reliance Securities on IndusInd Bank

Ambiguity relating to its exposure towards IL&FS group will remain overhang till more clarity emerges on that front. At the same time, we believe the Bank’s very strong financial position will take care of any shock emerging from the said exposure. We have reduced our earnings estimates by 10% and 4.5% for FY19E and FY20E, respectively to accommodate higher provisioning for IL&FS.

However, we continue to maintain our BUY recommendation on the stock with an revised Target Price of Rs2,146 based (from Rs2,196 earlier) on 4.3x FY20E adjusted book value.

12:29 PM

HDFC Securities on AU Small Finance Bank

AUBANK is one of the best placed to deliver higher than industry avg. growth given its diversified book, wider product offering and deep presence. Here-on, increasing fee contribution and improving oplev will drive RoAA (1.90%, +26bps over FY19-21E). Our conservative provision assumptions (~1%) provide an upside risk to earnings. We continue to admire AUBANK’s growth opportunities and execution capabilities. However, given the steep valuations, we maintain NEUTRAL with target price of Rs 641 (4.5xSept-20E ABV of Rs 142).  

12:27 PM

Edelweiss on Indiabulls Housing Finance

Indiabulls Housing Finance’s (IHFL) Q2FY19 is characterised by a steady core operating performance with AUM growth sustaining at 29% and earnings growing 20%-plus. However, amid the currently tight liquidity situation, management is focusing more on liquidity management than growth. This will lead to a near-term reset in growth, NIMs and return ratios. We anticipate AUM growth would trend near 25% and expensive incremental borrowing would weigh on NIMs. Asset quality – though stable currently (with Stage 3 assets at 0.77%) – will be a key variable if liquidity tightness persists for a while.

That said, IHFL’s proven track record, comfortable liquidity position, reaffirmation of credit ratings and stringent risk mitigants suggest it will traverse through these challenges relatively smoothly. In our earlier note, we trimmed asset growth, earnings and valuation multiples. Maintain ‘BUY’ with target of Rs 1,258.

12:15 PM

South Indian Bank spurts after Q2 results

 

Shares of South Indian Bank were up 13.73% at Rs 14.33 on BSE after the PSU bank reported rise in net profit by 1523.38% to Rs 701 million on 2.08% rise in total income to Rs 18.54 billion in Q2 September 2018 (y-o-y). The result was announced after market hours yesterday. Read More

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,088.84	+223.74	+0.64
S&P BSE SENSEX 50	11,051.79	+62.12	+0.57
S&P BSE SENSEX Next 50	31,240.23	+270.38	+0.87
S&P BSE 100	10,808.07	+65.64	+0.61
S&P BSE Bharat 22 Index	3,351.92	+14.50	+0.43

11:45 AM

Markets likely to slip; not the right time to bottom fish in NBFCs

 

Rising oil prices amid a sliding rupee are some of the headwinds that the markets have been facing off-late. Jitendra Gohil, head of India equity research at Credit Suisse Wealth Management tells Puneet Wadhwa that compared to the other emerging markets (EMs), they have underperform view on India. Investors, he says, should also stay away from equities for the next three – four months. Read More
 

JItendra Gohil, India equity research head at Credit Suisse

11:35 AM

Motilal Oswal Securities on Indiabulls Housing Finance

 

RATING: BUY

CMP: Rs 949

TARGET: Rs 1,150

 

IHFL's transformation from a diversified lender to a focused mortgage player has yielded returns, with RoA/RoE improving from 0.8%/3% in FY09 to 3.4%/28% in FY18. The focus on core mortgage loans and market share gains should drive AUM CAGR of 17% over the next three years. Asset quality trend is likely to remain stable. The transition to Ind-AS has been smooth. Strong relationships with banks, MFs and other entities, coupled with its AAA-rating, should enable company to sail through these tough times of tight liquidity. However, given the slow start to the year in terms of AUM growth, we cut our EPS estimates by 6-9% for FY19/20 and accordingly our TP by 6%.

11:25 AM

Motilal Oswal Securities on IndusInd Bank

 

RATING: BUY

CMP: Rs 1,627

TARGET: Rs 2,100

 

IndusInd Bank has witnessed an unusual quarter as contingent provision significantly impacted earnings. This, however, does not change the way we look at the company's underwriting capability. The core performance remains strong, as reflected in robust loan growth, asset quality and better-than-estimated margins. Merger with Bharat Financial will strengthen its earnings profile and boost return ratios. We cut our FY19/20 earnings by 10% as we increase our credit cost estimates to factor in additional provisions. We, thus, revise our price target to Rs 2,100 (3.4x Sep-20E ABV) from Rs 2,250.

11:15 AM

BSE500 top gainer

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
SOUTH IND.BANK	14.27	1.67	13.25	7869434
FINOLEX CABLES	519.00	36.95	7.67	6491
JP ASSOCIATES	7.33	0.50	7.32	7290424
INOX WIND	96.25	6.55	7.30	13498
DCM SHRIRAM	446.50	29.20	7.00	68681

Click here for more gainers

11:00 AM

Infosys earnings preview

 

Here's a look at what leading brokerages expect from Infosys' Q2 results:

 

Edelweiss Securities

 

We expect revenues to grow 3.4 per cent quarter - on - quarter (QoQ) in CC (constant currency) terms, impacted 100 bps due to cross currency headwinds (US dollar growth 2.4 per cent QoQ). EBITDA margin is expected to rise 120bps QoQ on account of rupee depreciation benefits, the absence of visa cost and efficiencies will be offset by wage hikes to senior employees. Commentary on-demand environment, growth in digital, deal wins will be key monitorable. Maintained 'Buy' rating on the stock. READ MORE

10:45 AM

EMs in healthy economic shape, bulls start to outweigh the bears: Survey

 

The bulls are finally starting to outweigh the bears in emerging markets. After two quarters of declines, developing-nation assets will find a floor and remain stable in the final three months of the year as central banks from Argentina to Turkey move to defend their currencies, a Bloomberg survey shows. EMs in healthy economic shape, bulls start to outweigh the bears: Survey Latin America eclipsed Eastern Europe, the Middle East and Africa as the region with the best prospects for currencies and bonds, while Asia was at the top for equities, according to the survey of 26 investors, traders and strategists. Read More

10:31 AM

IndusInd Bank: Q2 net grows just 5% as IL&FS worries spook Street

 

IndusInd Bank, one of India’s top private sector lenders, is among the few not to disappoint the Street on the earnings front. But the September quarter (Q2) was different, thanks to IndusInd setting aside Rs 2.75 billion as contingent provision towards the beleaguered Infrastructure Leasing & Financial Services (IL&FS). READ MORE

10:15 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,130.94	+265.84	+0.76
S&P BSE SENSEX 50	11,073.55	+83.88	+0.76
S&P BSE SENSEX Next 50	31,352.67	+382.82	+1.24
S&P BSE 100	10,832.02	+89.59	+0.83
S&P BSE Bharat 22 Index	3,358.70	+21.28	+0.64

10:00 AM

RIL may buy controlling stakes in Hathway, DEN Networks; stocks rally

 

Shares of Hathway Cable and DEN Networks rallied up to 8 per cent in opening deals on Tuesday on reports that Mukesh Ambani led-Reliance Industries may soon buy controlling stakes in two of India’s largest cable TV and broadband service providers, Hathway Cable & Datacom, and DEN Networks, as it seeks to ramp up coverage of its ambitious high-speed broadband network. Read More