MARKET WRAP: Sensex surges 580 pts on strong Asian cues; auto, banks rally

Nifty Auto index rose 4.2 per cent led by a rise in Maruti Suzuki, Tata Motors and Hero MotoCorp. The Nifty Bank index, too, ended 1.5 per cent led by IndusInd Bank and Axis Bank

3:39 PM

Sectoral gainers and losers on NSE

3:39 PM

S&P BSE Sensex: Top gainers and losers

3:35 PM

Market at Close
 

The S&P BSE Sensex jumped 580 points or nearly 2 per cent to settle at 35,012 while NSE's Nifty50 index reclaimed 10,550 mark to settle at 10,553, up 173 points or nearly 2 per cent. 

3:17 PM

PNB falls 13% from day's high level on disappointing Q2 results

Shares of Punjab National Bank (PNB) dropped 8% to Rs 68.20, falling 13% from intra-day high level, after the state-owned bank reported higher- than-expected net loss in September quarter (Q2FY19), due to higher provisioning for bad loans. The stock touched a high of Rs 78.60 on the BSE in early morning trade, before the announcement of results. READ MORE

3:03 PM

Gold prices fall Rs 150 on weak global cues, muted demand

Gold prices drifted lower by Rs 150 to Rs 32,630 per 10 grams Friday, breaking its three-day rising spell, amid weakening global trend and fading demand from the local jewellers. Silver, however, recovered by Rs 310 to Rs 39,500 per kg backed by increased offtake by coin makers.

 

Bullion traders said sentiment turned somewhat weak largely in tandem with a subdued trend overseas. READ MORE

2:44 PM

S&P BSE Sensex top gainers and losers

2:29 PM

Indiabulls Housing Finance Ltd spurts 3.13%, rises for third straight session

 

The stock is quoting at Rs 877.05, up 3.13% on the day on the NSE. Indiabulls Housing Finance Ltd is down 28.05% in last one year as compared to a 1.08% gain in NIFTY and a 3.13% gain in the Nifty Financial Services index. Indiabulls Housing Finance Ltd rose for a third straight session today. The stock is quoting at Rs 877.05, up 3.13% on the day as on the NSE. Read more

2:15 PM

No need to pay customs duty on imported gifts valued below Rs 5,000

 

When Neeti Korgaonkar received a parcel from her sister in Australia, the postman asked her to pay about Rs 4,000 as customs duty. Trivedi was surprised as the duty came to about 70 per cent of the value all items her sister had sent, which included clothes and soft toys for Trivedi’s two-year-old daughter. Above all, this was a gift for personal use and not a commercial transaction. Customs duty is applicable on all items that are ‘imported’ in the country. Read more

2:05 PM

Indian Oil second-quarter profit drops on higher forex, raw material costs

State-run refiner Indian Oil Corp Ltd posted a 12.2 percent fall in second-quarter profit on Friday, missing estimate by a wide margin, dented by forex expenses and raw material costs.

 

Net profit came in at 32.47 billion rupees ($446.92 million) in the quarter ended Sept. 30, compared with 36.96 billion rupees a year earlier, IOC said. READ MORE

1:59 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,166.32	+734.35	+2.13
S&P BSE SENSEX 50	11,089.46	+225.42	+2.07
S&P BSE SENSEX Next 50	32,172.50	+745.98	+2.37
S&P BSE 100	10,887.31	+226.03	+2.12
S&P BSE Bharat 22 Index	3,490.36	+62.30	+1.82

1:54 PM

Fraud-hit Punjab National Bank logs 3rd straight quarterly loss at Rs 45 bn

Punjab National Bank (PNB) reported a third straight quarterly loss on Friday, as India's second-largest state lender by assets set aside more money to account for a massive fraud.

 

Net loss came in at Rs 45.32 billion ($622.74 million) for the three months ended Sept. 30, compared with a profit of 5.61 billion rupees a year earlier, the bank said in a statement. READ MORE

1:47 PM

14 stocks gain over 30% in a week;PC Jeweller,Dhanlaxmi Bank surge over 60%

A sharp turn in mid and small-cap index stocks have seen the market price of 14 companies rally more than 30% during the current week, taking cues from falling oil prices, strengthening of the rupee, strong inflows from domestic mutual funds and easing of US-China trade war fears.
 

PC Jeweller, Dhanlaxmi Bank, Reliance Communications, Adani Power, Bombay Dyeing & Manufacturing Company, DB Realty, KEI Industries, Usha Martin and Kalpataru Power Transmission were among 14 stocks, rallied in the range of 30% to 66% during the current week. READ MORE

1:30 PM

BSE to delist 9 companies from Monday

Leading stock exchange BSE will delist as many as nine companies from Monday as trading in their shares has remained suspended for over 6 months. The exchange has been delisting for the past few months those firms in which trading has remained suspended for a long period.

The companies facing delisting are -- Anil Ltd, Brakes Auto (India) Ltd, Indus Fila, IQ Infotech, Lok Housing & Constructions, Metropoli Overseas, Pithampur Steels, Prakash Solvent Extractions and Sibar Software Services (India). READ MORE

1:17 PM

NEWS ALERT

IOCL reports Q2 net profit at Rs 3,247 crores

1:01 PM

Technical check on the markets (Source: Prabhudas Lilladher report)

Nifty has corrected by almost 15% from 11,750 to a low of 10,004 which nearly makes a double bottom on the daily chart along with a positive divergence in RSI on daily chart calling for a bounce back rally. This can be more convincing once RSI sustains above 40 levels & Nifty crossing 10,250-10,300 for further upside to 10,400, the reversal in trend would be confirmed if Nifty moves past 200DMA level of 10,765 & sustains above it.

1:00 PM

Edelweiss on HDFC

12:58 PM

Elara Capital on Bank of Baroda

We assume remote probability of recoveries in holding company loans and a prolonged exercise before any reasonable recovery in operating assets, considering the prevailing scenario of stressed loans resolution in IBC cases. We estimate the bank’s RoA & RoAE would come down in range of 150-155bp & 13.5%-15.5% in FY19 & FY20 from 169-172bp & 15.4%-16.7% respectively.

We reduce our target price by 13% to Rs 1,564 based on 3-stage DDM, implicitly factoring in P/ABV at 3.4x FY20E. We reiterate our Accumulate rating on the stock with a revised target price of INR 1,564

12:57 PM

Elara Capital on Sanofi

Strong performance in 9MCY18 reinforces our positive view. Top products, such as Lantus, Insuman and Allerga, along with line extensions of Amaryl remain resilient. Further, the recently launched Toujeo (Feb 2018) has gained traction. About 19% of the company’s domestic portfolio is under price control, which witnessed a 4% price hike from April 2018, and has added to growth.

We expect exports to see a recovery, benefitting from currency tailwinds and higher volume over subdued growth in CY17. We slightly increase our EPS by 3% each in CY18E and CY19E. At the CMP, the stock is trading at 15x CY20E EV/EBITDA, which is at a discount to other MNC peers. We recommend Accumulate with a new target price of Rs 6,600 from Rs 6,130 on 30x (from 32x) CY20E P/E as we roll forward by a year. Any regulatory headwinds to drug pricing in the domestic market are key risks to our call

12:56 PM

Morgan Stanley on money market

This week’s risk rally took place within a long-term bearish trend, driven by worsening global liquidity conditions. Potential Chinese fiscal stimulus may capture attention, but longer-term forces like the Fed's balance sheet normalization should continue to weigh on risk. While foreign investment flows into longer-term US assets like FDI, bonds, and equities have been slowing, allocations to US money market instruments have increased, which bodes poorly for the risk outlook and the USD going forward

12:55 PM

MARKET COMMENT Chris Wood of CLSA

The American deadline for the world to stop buying Iranian oil is 4 November. But there has been a lack of noise on this issue of late as the media has focused on events in Istanbul. The recent decline in the oil price suggests that the market is not expecting the US ultimatum on Iranian oil to be enforced as aggressively as previously assumed.
 

While Iran’s oil exports have definitely fallen, they have not yet gone into freefall. If the Americans are not enforcing the ultimatum as aggressively as originally assumed, this is perhaps not so surprising given that a surging oil price is the last thing Donald Trump wants in the run up to the mid-term elections. There is also the issue of whether Saudi Arabia really has the ability to increase production that it claims to have.

If China will be the test case of whether the US sanctions will be really effective, the issue has become even more charged because of the unresolved trade dispute between Washington and Beijing. True, it is clearly possible for China to buy Iranian oil with renminbi or via barter arrangements. But such manoeuvres would not prevent an enforcement of US sanctions if a political decision has been made by Washington to enforce the threat of secondary sanctions aggressively.

Christopher Wood, Managing Director & Equity Strategist, CLSA

12:46 PM

Top gainers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
PC JEWELLER	83.30	13.75	19.77	4147004
INFIBEAM AVENUES	39.10	5.90	17.77	3671536
G N F C	370.40	31.85	9.41	217235
MOTHERSON SUMI	174.20	14.95	9.39	1314261
V-MART RETAIL	2768.90	227.50	8.95	2437

12:36 PM

Motilal Oswal on HPCL

 

CMP: Rs 229 

TARGET PRICE: Rs 209 

RATING: Neutral

 

1HFY19 standalone EPS stands at Rs 18. We estimate FY19 standalone EPS at Rs 26.6. OMCs have seen a sharp correction in the recent past due to a cap on margins in auto fuel due to the upcoming elections and rising crude oil prices. In light of the upcoming elections, the risk of subsidy sharing on LPG/kero, issuance of bonds rather than cash compensation, increased working capital and increased interest cost remains high. HPCL is trading at 5.5x consol. FY20E EPS of Rs 41.7 and 1.1x FY20EPBV. We value the stock at 1x FY20 PBV. Due to concerns, we maintain a Neutral stand on the company with a target price of Rs 209. Biggest risk to our call would be lowering of oil prices and rupee appreciation.

12:33 PM

EARNINGS IMPACT

12:30 PM

NEWS ALERT PNB reports Q2 earnings with net NPA at 8.90% Vs 10.58% (Q-o-Q)

12:27 PM

Motilal Oswal on HDFC

 

CMP: Rs 1762 

TARGET PRICE: Rs 2140  

RATING: Buy

 

HDFC’s loan growth is impressive, despite intense competition and a high base. The current liquidity situation presents HDFC with the opportunity to gain market share as competitive intensity moderates. With its recent rate hikes across the portfolio, HDFC will be able to manage spreads better than peers, in our view. We believe the mortgage franchise is vailable at attractive valuation. We largely maintain our estimates for FY19/20. Buy with an SOTP-based TP (Sept’20E based) of Rs 2,140.

12:17 PM

Hero MotoCorp, M&M rise 5% post October sales

 

Shares of Hero MotoCorp and Mahindra & Mahindra (M&M) were up by 5% each on the BSE after these companies posted more than 15% year-on-year (Y-o-Y) growth in total sales during the month of October. Hero MotoCorp was up 5% at Rs 2,934 after the company dispatched 734,668 units of motorcycles and scooters in October 2018 – a growth of 16.4% over the corresponding month of the previous fiscal. The two-wheeler company had sold 631,105 units in the month October 2017. Read more

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,033.25	+601.28	+1.75
S&P BSE SENSEX 50	11,052.93	+188.89	+1.74
S&P BSE SENSEX Next 50	32,082.77	+656.25	+2.09
S&P BSE 100	10,852.39	+191.11	+1.79
S&P BSE Bharat 22 Index	3,489.78	+61.72	+1.80

11:46 AM

Non-ETFs pull $1 bn out of India in Sep; global emerging market funds fall

FPIs have been pulling out money from EMs in the past few months. In September, India saw $931 mn of outflows, driven by non-ETF outflows of $1 bn. Other regions seeing sizeable outflows were Taiwan ($832 mn) and Russia ($566 mn). China was an outlier with inflows of $2.1 bn. Shares of consumer discretionary and consumer staples witnessed the most selling in 2018, to the tune of $2.1 bn and $1.3 bn, respectively. READ MORE

11:27 AM

West Coast Paper Mills hits new high; stock zooms 117% in one year

 

Shares of West Coast Paper Mills have hit a new high of Rs 415 per share, up 4% from its previous close, surging 36% from their recent low of Rs 306 per share touched on October 8, on the BSE on the expectations of a strong set of quarterly results. In past one year, the stock has outperformed the market, zooming 117% from Rs 191, as compared to a 4.2% rise in the S&P BSE Sensex. In the past two years, it appreciated 301% against 27% gain in the benchmark index. Read more

11:14 AM

S&P BSE Sensex top gainers and losers