MARKET WRAP: Sensex rises 732 pts, Nifty ends at 10,472; India VIX eases 8%

The Nifty Auto index settled 4 per cent higher led by a rally in shares of Mahindra & Mahindra and Maruti Suzuki India. The Nifty Bank index, too, rose 2.5 per cent led by IndusInd Bank and ICICI Bank

3:36 PM

Sectoral trends on NSE

3:35 PM

BSE Sensex: Top gainers & losers

3:34 PM

Market At Close
 

The S&P BSE Sensex settled at 34,733.58, up 732 points or 2.15 per cent while NSE's Nifty50 index gained 238 points or 2.32 per cent to end at 10,472.50.

3:16 PM

Auto index set to post sharpest single day gain in 31 months

Shares of automobile companies were riding high on the bourses on Friday as Nifty Auto and the S&P BSE Auto indices, set to post their sharpest single-day rally in 31 months, amid fall in oil prices and rupee recovery from record lows.
 

At 02:38 PM; Nifty Auto (up 4.02%) and the S&P BSE Auto (up 4.2%) indices were up more than 4%, as compared to 2% rise in the benchmark indices. Earlier, on March 1, 2016, auto indices were up 4.3% in a single day. READ MORE

3:00 PM

Oil rebounds to $81, pares gain as IEA sees adequate supply

 

Oil rose to $81 a barrel on Friday, rebounding after two days of declines, though prices pared gains after another closely watched forecaster deemed supply adequate and the outlook for demand weakening. Crude was still heading for its first weekly drop in five weeks, pressured by a big rise in U.S. inventories and fading concerns that looming U.S. sanctions on Iran will cut supplies significantly. Read More

2:47 PM

Nifty Metal index up 3.44% led by gains in Jindal Steel

2:30 PM

IEA sees world oil market 'adequately supplied'

 

Oil markets look "adequately supplied for now" after a big increase in production over the last six months but the oil industry is coming under strain as it copes with increasing global demand, the West's energy watchdog said on Friday. The International Energy Agency said in its monthly report that the world's spare oil production capacity was already down to only 2 percent of global demand, with further reductions likely to come. Read More

2:15 PM

Multiple earnings triggers for GAIL amid risks of subsidy sharing

 

Amidst the overhang and risks of subsidy sharing, stocks of all public sector (PSU) oil and gas companies have seen sharp cuts. GAIL, too, fell about 12 per cent in October, before seeing some rebound over the past two days. While the Centre has not indicated any move to push PSU oil firms to share subsidies, Nilesh Ghughe at HDFC securities says that if it does, GAIL stands to be the last in the pecking order, while ONGC/OIL India would be the first to share the subsidy burden, followed by oil marketing companies. Read More

2:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,740.69	+739.54	+2.18
S&P BSE SENSEX 50	10,940.42	+231.14	+2.16
S&P BSE SENSEX Next 50	30,930.32	+922.60	+3.07
S&P BSE 100	10,699.44	+239.96	+2.29
S&P BSE Bharat 22 Index	3,339.79	+65.67	+2.01

1:46 PM

Power stocks rally; Tata Power, CESC, Adani Power gain up to 16%

Shares of electric utility companies such as Tata Power, Reliance Infrastructure, Adani Power, CESC and JSW Energy have rallied by up to 16% on the BSE in intra-day trade on hopes of the Gujarat government’s panel may bring Rs 1.29 trillion relief to state’s three stranded power projects. Tata Power soared 16% to Rs 72.15 on the BSE in intra-day trade on the back of an over 10-fold jump in trading volumes. READ MORE

1:29 PM

Investment strategies in current market

 

The sharp correction in equities over the past few weeks has shaken investors' confidence in the asset class. Though the headline indices have tumbled over 10 per cent from peak levels, the fall in select individual stocks - especially in the mid-and small-cap segments has been much sharper. With the portfolios bleeding, investors are now seeking safer options to park their money. Read More

1:15 PM

Nifty Auto index rises over 4% led by M&M

1:00 PM

Hindustan Unilever trades firm ahead of Q2 earnings, stock up 2.4%

 

Shares of Hindustan Unilever (HUL) are up 2.4% at Rs 1,566 on the BSE ahead of its July-September quarter (Q2FY19) earnings today. The fast-moving consumer goods (FMCG) company will announce results after market hours. Since July 16, 2018, post-June quarter results (Q1FY19), HUL had underperformed the market by falling 13%, as compared to 6.4% decline in the S&P BSE Sensex. Read More

12:45 PM

How a fundamental view differs from a technical view

 

What should I use; fundamentals or technicals? This is a question that has plagued investors for a long time and there are still no clear answers. A lot of investors tend to look at fundamentals as a key to long-term investing and technicals as a way to quick-fix trading. While the understanding is broadly on the right track, it misses out some key nuances about fundamental and technical analysis. A fundamental analyst does spend a lot of time looking for value. Are the cash flows healthy; are the margins healthy; how good is the management; is the product disruptive; these are some of the key questions that a fundamental analyst asks. The technical analyst, on the other hand, is more focused on the charts. Read More

12:35 PM

Govt loses Rs 6 trillion in market rout as PSU stocks take a beating

 

The sharp fall in markets has dealt a telling blow to the government. The value of government holding in listed PSUs has reduced by Rs 6 trillion from their one-year highs. An analysis of data from Capitaline shows the 41 state-owned stocks have halved from their 52-week highs and another 32 are currently trading at 12-44 per cent below their 52-week highs. Experts say investor sentiment towards the PSU space is at one of its lowest points. “The PSU space has underperformed the most, whether large-caps or mid-caps. Read More

12:16 PM

Top gainers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
SADBHAV ENGG.	227.05	25.30	12.54	7858
JAI CORP	106.35	10.95	11.48	302254
INDO COUNT INDS.	67.60	6.70	11.00	85593
PRISM JOHNSON	89.80	7.10	8.59	26352
NAVKAR CORPORAT.	83.20	6.25	8.12	10283

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,701.75	+700.60	+2.06
S&P BSE SENSEX 50	10,925.62	+216.34	+2.02
S&P BSE SENSEX Next 50	30,777.50	+769.78	+2.57
S&P BSE 100	10,679.23	+219.75	+2.10
S&P BSE Bharat 22 Index	3,333.80	+59.68	+1.82

11:45 AM

After NBFCs, bond market woes likely to weigh on rating agencies' revenues

 

The pressure seen in the domestic bond market is unlikely to be confined to non-banking financial companies (NBFCs). Even rating agencies are likely to feel the heat of recent events due to subdued corporate bond issuance. Already, during the first half of 2018-19, amid elevated yields, corporate bond issuance (including private placement of debt) is down 30 per cent year-on-year. Read More

11:31 AM

Airline stocks extend gain; IndiGo, Jet Airways, SpiceJet up 10% in 3 days

 

Shares of all three listed airline companies were trading higher for the third straight session on the BSE after the government on Wednesday cut excise duty on jet fuel to 11% to give relief to the aviation industry and fall in the Brent crude oil prices by 5.6% in past two days. Read More

11:15 AM

Sensex back to April levels: Here are the winners & losers in past 6 months

 

The Sensex on Thursday closed at its lowest level since April 11. Essentially, the index, that tracks the share price performance of India’s 30 bluechip companies, is little changed this fiscal year. However, the 30 components have seen wild fluctuations in their stock prices during this period. Read More
 

11:00 AM

Why equity investors should brace for more volatility and negative returns

 

Equity investors should brace for greater volatility and negative returns as bond yields inch-up in the US, the world’s largest bond and equity market. Long-term data points to a negative correlation between yield on the 10-year US government bond and the price-to-earnings (P/E) multiple of the S&P500 index — the US’ most traded equity index. Read More

10:45 AM

Nifty Auto index up over 3% led by gains in M&M

10:35 AM

Buzzing Stock
 

Shares of YES Bank have rallied 6% to Rs 255 on the BSE in early morning trade after the private sector lender appointed US-based headhunter Korn Ferry to assist the bank’s committee in its selection of the new managing director & chief executive officer (MD & CEO).

 

The bank had announced that it would find a successor to MD & CEO Rana Kapoor whose term was cut short by the Reserve Bank of India (RBI). READ MORE

10:25 AM

Motilal Oswal Securities on Zee Entertainment

We assign P/E of 30x (seven-year average) to FY20E EPS of 19.8 – a 15% discount to three-year average multiple due to the threat from the digital media space – to arrive at a target price of INR600. Strong earnings growth, healthy RoIC and cash generation should support Zee5 and allay concerns about long-term earnings visibility, in our view. Maintain Buy.

10:24 AM

Reliance Securities on TCS

TCS’ improved visibility in BFSI and Retail along with healthy outlook in other key verticals drives our underlying confidence on the business. With Digital contribution rising to >28%, healthy growth in this segment will move the needle meaningfully going forward.

High pay-outs (100% of FCF) to shareholders in the form of share buy-backs along with improving business visibility will ensure the stock remains at elevated valuations. Upwardly revising our EPS estimates by 2-3% (factoring in INR/USD rate of Rs70 vs. Rs67.50 earlier), we maintain our BUY recommendation on the stock with a revised Target Price of Rs2,260 (from Rs2,170 earlier)

10:23 AM

MARKET COMMENT Chris Wood of CLSA

Contrary to market expectations, the Reserve Bank of India did not raise rates last week. The odds favour further depreciation of the rupee given that the Indian currency is still not cheap on a real effective exchange rate basis while the oil factor suggests further deterioration in the current account deficit.
 

Will the return to a weak currency in India trigger a wave of inflows into gold as historically would have been the case? On the face of it, this is happening with gold imports having doubled on a YoY basis in August. But GREED & fear would advise gold buyers not to draw much comfort from the Indian data. What gold needs, like Asian and emerging market stocks, is an end to Fed tightening. For now this remains nowhere in sight based on last Friday’s US job and wage data.

Christopher Wood, Managing Director & Equity Strategist, CLSA

10:23 AM

TCS management terms Q2 as landmark quarter

 

India's largest IT services firm Tata Consultancy Services (TCS) on Thursday posted a 23 per cent YoY rise in its net profit at Rs 79.01 billion for the September quarter of FY19. The company, in its press release, stated that digital demand drove double-digit growth in the second quarter.

Earnings per share (EPS) of the company came in at Rs 20.66, up 22.7 per cent YoY. The company also announced the second interim dividend of Rs 4 per equity share of Re 1 each, which will be paid to the equity shareholders on October 30, 2018.

 

Click here to look at the key highlights of the IT bellwether's Q2 results:

10:15 AM

TCS extends fall after Q2 earnings; down 8.5% in one week

 

Shares of Tata Consultancy Services (TCS) was down 3% to Rs 1,925 on the BSE in early morning trade in an otherwise firm market after the company reported a lower than expected revenue growth of 3.7% in constant currency (CC) terms in September quarter on the sequential basis. The Street was estimating revenue growth of 4% in CC terms for the quarter. Read More

TCS

10:00 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,553.87	+552.72	+1.63
S&P BSE SENSEX 50	10,881.14	+171.86	+1.60
S&P BSE SENSEX Next 50	30,757.49	+749.77	+2.50
S&P BSE 100	10,641.17	+181.69	+1.74
S&P BSE Bharat 22 Index	3,329.91	+55.79	+1.70

9:46 AM

Four factors that will drive September quarter results of India Inc

 

The first quarter ended June will qualify as the quarter of very slow growth but decisive growth. However, the second quarter has seen the Nifty and Sensex touching new highs but it also saw a very narrow rally in the markets. The key theme was consumption and most of the other sectors were hit by a weak rupee and high crude oil prices. Crude oil prices were higher and there were headwinds due to rising input costs and interest rates weigh on companies as they enter the earnings season. Read More