MARKET WRAP: Sensex jumps 551 pts as govt assures RBI autonomy; HDFC up 6%

Nifty IT index settled 4.2 per cent higher led by gains in Tech Mahindra and Infosys. The Nifty Financial Services index too rose 2.3 per cent led by Indiabulls Housing Finance and HDFC

3:38 PM

Top sectoral gainers & losers on NSE

3:37 PM

S&P BSE Sensex: Top gainers & losers

3:35 PM

Market At Close
 

The S&P BSE Sensex jumped 551 points or 1.63 per cent tp settle at 34,442 while NSE's Nifty50 index reclaimed the crucial 10,350 level to end at 10,387, up 188 points or 1.85 per cent. 

3:19 PM

Dabur India's Q2 net profit jumps 4% to Rs 3.7 bn, income up 8% to Rs 22 bn

FMCG major Dabur India Wednesday reported a 4.10 per cent increase in consolidated net profit at Rs 3.77 billion for the second quarter ended September, 2018 helped by growth of the core business in the domestic market.

 

The company had posted a net profit of Rs 3.62 billion in the July-September quarter a-year-ago, Dabur India said in a BSE filing. READ MORE

3:15 PM

Financial stocks in focus; PNB Housing, DHFL, HDFC up over 5%

Shares of financial stocks including banks, housing finance and non-banking finance companies were in focus, rallying up to 12% on the bourses in intra-day trade erasing their entire early morning losses. Nifty Financial Services and Nifty PSU Bank indices were up 2% each as compared to 1.4% rise in the Nifty 50 index. Nifty Bank and Nifty Private Bank were up 1% each on the NSE. READ MORE

2:59 PM

Oil rises 1 per cent ahead of Iran sanctions

 

Oil prices climbed for the first time in three days on Wednesday, rising around 1 per cent ahead of the start of U.S. sanctions against Iran next week and as stock markets clawed back some of the losses they racked up this month. 

 

Brent crude futures had gained 83 cents, or 1.1 per cent, to $76.74 a barrel. They fell 1.8 per cent on Tuesday, at one point touching their lowest since Aug. 24 at $75.09 a barrel.

 

U.S. West Texas Intermediate (WTI) crude futures advanced 55 cents, or 0.9 per cent, to $66.73 a barrel on Wednesday. They dropped 1.3 per cent the day before, after hitting their lowest since Aug. 17 at $65.33 a barrel.

2:45 PM

Shares of housing finance companies have risen

2:30 PM

S&P BSE Sensex top gainers and losers

2:19 PM

NEWS ALERT: PNB Housing Finance raises Rs 24.50 billion through commercial papers, stock jumps 10%

2:09 PM

RBI Governor Urjit Patel may not resign, calls board meeting on Nov 19

RBI Governor Urjit Patel may not resign as he has called a board meeting on November 19 to discuss the pending issues, which created a rift between the government and the central bank, in the previous meeting held last week.

 

Meanwhile, the finance ministry said on Wednesday that it respects the central bank's autonomy. READ MORE

1:58 PM

BS Primer: What is liquidity and why does it matter?

Liquidity explains the extent to which an asset can be converted into cash without significant loss of value. You may perceive it as an ability to realise the maximum value of an asset by purchase or sale without impacting the price of the asset. From an investment point of view, liquidity relates to the ease with which an asset can be bought or sold to meet the urgent need of cash. Read more

1:45 PM

Emami, Tata Global Beverages hit 52-week low post September quarter results

Shares of Emami and Tata Global Beverages have hit their respective 52-week lows, falling by up to 9% on the BSE in intra-day trade on Wednesday, after reporting a weak set of numbers for the quarter ended September 2018 (Q2FY19).
 

Tata Global Beverages slipped 9% to Rs 206 after the company posted 19% year-on-year (Y-o-Y) growth in group net profit at Rs 1.84 billion in Q2FY19, on account of lower tax and higher profits from associates and joint ventures. READ MORE

1:29 PM

Equirus on Wipro 

 

CMP: Rs 307

Target Price: Rs 329

Rating: Accumulate

 

Wipro’s 2QFY19 earnings were better than anticipated both on revenue and margins. IT services constant currency (CC) revenues grew 2.8% (guidance: 0.3- 2.3%) while US$ revenues increased 1.9% qoq (adjusting for data center business) and were higher than EE (-0.1% qoq). Further, though consolidated reported EBITM declined 100bps qoq to 13.3%, adjusted IT services EBITM expanded 250bps qoq to 18.1% vs. 15.6% LQ. Finally, 3QFY19e CC revenue growth guidance of 1-3% was reassuring. We adjust estimates and maintain our ADD rating with a Mar’20 TP of Rs 329 (same as earlier) set at 17x Mar’20 TTM EPS of Rs 19.4 (same as earlier).

 

1:23 PM

Equirus on Bajaj Auto

 

CMP: Rs 2478

Target Price: Rs 3130

Rating: Overweight

 

Bajaj Auto’s delivered an in-line 2QFY19 with 3% yoy growth in EBITDA (Rs 13.4bn), despite 25% yoy growth in volumes as discounts offered to gain market share in domestic 2Ws hurt margins. As we had stated earlier, discounting or some other form of promotion was critical for Bajaj Auto to revive footfalls, dealer profitability and market share, given that market share is relatively difficult to revive (vis-à-vis margins) in the long term. Increase in Platina sales and market share stemmed from higher footfalls in dealerships. We expect EBITDA margins to improve gradually from 4Q with 18% margins in FY20 as USD-INR realizations touch 73. We raise FY19E/FY20E volumes by ~3% but revise EPS estimates by -1%/1. Retain LONG with a Sep’19 TP of Rs 3,130 set at 18x Sep’19 EPS (Jun’19 TP: Rs 3,038).

1:16 PM

Finance ministry says RBI autonomy 'essential'

Finance ministry said on Wednesday the autonomy of the Reserve Bank of India (RBI) was "essential", in an attempt to dampen a spat between the government and the central bank. READ MORE

1:08 PM

Anand Rathi on Majesco

 

CMP: Rs 468

Target Price: Rs 570

Rating: Buy

 

With $34m revenue, Majesco US (the underlying) had a steady Q2 (up 1.5% q/q, 12% y/y), as cloud-revenues (contributing 39% and growing 9% q/q, 41% y/y) displace traditional service revenues (down 3% q/q, 1% y/y). The transition hit the order book, at $73m (down 10% q/q, 5% y/y) leading to expectations of a slow H2. Majesco won its second deal through IBM, not yet in the order book, likely to benefit FY20. The EBITDA margin at 11%, up 272bps q/q, was driven by currency, higher offshore and SG&A discipline, and is likely to persist. We maintain our Buy, with a Rs 570 target (Rs 575 earlier) while moving to a PE-based valuation (from EV:Sales) reflecting profitability and scale.

1:02 PM

Anand Rathi on HIL

 

CMP: Rs 2,153

Target price: Rs 2,763

Rating: Buy

 

We believe that HIL, with its leading position, expansion in a high-growth market and its better operating performance, will post a sturdy performance. We, therefore, retain our Buy rating, with a target of Rs 2,763 at a 15x PE on FY20e. Risk: Higher input costs.

1:01 PM

Investors in ICICI Bank subsidiaries can look forward to better days

 

Sandeep Bakshi’s elevation to the head office has done a great deal of good to the ICICI Bank stock. For one, sentiment has improved, as uncertainty about the top management following the Chanda Kochhar controversy has subsided. The stock is now not far away from its all-time high. After Bakshi took over as MD and CEO, the bank's financials began looking up, thanks to the various measures taken by its management. Read more

12:51 PM

NEWS ALERT Govt says

Extensive consultations on many issues to take place between govt, RBI frequently

12:50 PM

NEWS ALERT Govt says

Autonomy of RBI within the framework of RBI act is essential

12:49 PM

NEWS ALERT Govt says

Will continbue to place assessments, suggestions post consultaion with RBI

12:43 PM

Finance ministry to shortly issue a statement on government-RBI rift

The government will soon issue a statement to address the growing differences between the finance ministry and the country's central bank, Economic Affairs Secretary Subhash Chandra Garg said on Wednesday.

 

Earlier in the day, television channels reported that Reserve Bank of India Governor Urjit Patel may consider resigning from his post given a breakdown in relations with the government, sparking a sell-off in the rupee and government bonds. READ MORE

12:28 PM

What ails Baba Ramdev's Patanjali?

 

After clocking in sales of Rs 120 billion in financial year 2017 – 18 (FY18), Baba Ramdev – led Patanjali Group could now enter the slow lane. According to a recent IIFL report co-authored by Percy Panthaki, Avi Mehta and Sameer Gupta, sales of Patanjali products have halved from two year earlier levels. The report, based on on-ground channel checks in Mumbai, suggests the development, could prove to be a boon for listed players like Dabur and Colgate Palmolive (India). Read more

12:17 PM

Tech Mahindra gains 8% as margins impress in Q2

 

Shares of Tech Mahindra have moved higher by 8% to Rs 741 per share on the BSE in intra-day trade after the company’s Ebitda (earnings before interest, tax, depreciation and amortization) margins in the September quarter (Q2FY19) expanded 240 bps sequentially at 18.8%, mainly led by operational efficiencies and currency tailwinds. On a year-on-year basis, Ebitda margins were improved by 430 bps. Read more

 

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,836.12	-55.01	-0.16
S&P BSE SENSEX 50	10,672.09	-7.57	-0.07
S&P BSE SENSEX Next 50	30,819.66	+42.96	+0.14
S&P BSE 100	10,470.25	-4.11	-0.04
S&P BSE Bharat 22 Index	3,326.44	-26.77	-0.80

11:44 AM

Nifty IT index up over 2.5% led by Tech Mahindra

11:30 AM

'Investors may get an opportunity to buy banks, NBFCs at lower levels'

 

Markets are trying to find their feet after a sharp fall. Saravana Kumar, chief investment officer at LIC Mutual Fund tells Puneet Wadhwa that investors should focus on large-cap schemes in these uncertain times. Markets, he says, will be watching what the outcome of the upcoming state polls have on economic reforms and pre-general election alliances. Click here to read full interview

Saravana Kumar, chief investment officer at LIC Mutual Fund

11:15 AM

RBI Guv Urjit Patel's exit will dent market sentiment again, say analysts

 

The ongoing spat between the government and the Reserve Bank of India (RBI), if not contained, will have dire consequences on the markets, feel Dalal Street experts. At this crucial juncture, when markets have started recovering after NBFC turmoil and supportive global cues, the resignation of the RBI Governor Urjit Patel will rattle investor sentiment, they say. Read more

11:00 AM

Cummins India surges 14% as Q2 earnings beat estimates

 

Shares of Cummins India have surged 14% to Rs 769 per share on the BSE after the company reported a better-than-expected 39% year-on-year (Y-o-Y) jumped in its net profit at Rs 2.12 billion in September quarter, on back of higher revenue. It had a profit of Rs 1.53 billion in the same quarter a year ago. The company achieved the highest ever sales of Rs 14.52 billion in Q2FY19, up 30%, as compared to Rs 11.18 billion recorded in the same quarter last year. Read more

10:56 AM

EARNINGS IMPACT