MARKET WRAP: Sensex rallies 461 points led by banks; Adani Power jumps 25%

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3:59 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

The bulls were back in business, as the equity benchmark indices managed to end Wednesday’s session on a positive note, led by some short covering. The Nifty index ended on a firm note gaining 1.5% at 10,460 levels. The broader market indices ‘BSE Midcap & Smallcap’ outperformed the benchmark, registering healthy gains of 4.2% and 3.4%, respectively. Barring IT, which closed in red, all the other sectoral indices ended on a positive note with Auto, banks and Consumer Durables being the top gainers. Globally, European markets were trading in red while Asian markets ended on a mixed note. 

 

We maintain our cautious view on the Indian markets in the near term, as volatility is likely to remain high. Focus of market participants would shift to corporate earnings season and the domestic macro data like IIP and CPI / WPI inflation which are scheduled over next 1-2 weeks, as it would dictate further course of markets. Also movement of currency, crude oil prices and global developments would be actively tracked by investors. Under uncertain market conditions, traders & investors should be selective in stock picking

3:38 PM

Sectoral gainers and losers on NSE

3:37 PM

BSE Sensex: Top gainers & losers

3:35 PM

Market At Close

 

The S&P BSE Sensex ended 461 points higher at 34,761 while NSE's Nifty50 index gained 159 points or 1.54 per cent to settle at 10,460, with 42 constituents in the green and 8 in the red. 

3:31 PM

STOCK ALERT Power stocks surge; Adani Power zooms 30%; 

3:20 PM

Bandhan Bank gains over 7% post Q2 results

Shares of Bandhan Bank have moved higher by 7.5% to Rs 521 per share on the BSE in intra-day trade after the bank reported a 47% year on year (YoY) jump in its net profit at Rs 4.88 billion during July-September quarter (Q2FY19). The private sector lender had a profit of Rs 3.31 billion in the same quarter last fiscal. READ MORE

3:00 PM

Oil dips as IMF cuts growth outlook; eyes on hurricane

Oil prices slipped on Wednesday after the IMF lowered its global growth forecasts, but markets were supported as Hurricane Michael moved towards Florida causing the shutdown of nearly 40 percent of U.S. Gulf of Mexico crude production.

 

Brent crude was down 20 cents at $84.80 a barrel by 0915 GMT after a 1.3 percent gain on Tuesday. U.S. light crude was down 15 cents at $74.81. READ MORE

2:44 PM

India may receive 4 bn barrels of extra crude oil from Saudi Arabia in Nov

Saudi Arabia, the world's biggest oil exporter, will supply Indian oil buyers with an additional 4 million barrels of crude oil in November, several sources familiar with the matter said on Wednesday.

 

Reliance Industries Ltd, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemicals Ltd, sought an additional 1 million barrels each in November, one of the sources said. READ MORE

2:37 PM

Bandhan Bank Q2 profit jumps 47% to Rs 4.9 billion; NPA up marginally

India's Bandhan Bank Ltd posted a 47.3 per cent jump in second-quarter profit on Wednesday, helped by higher interest earned. Net profit rose to Rs 4.88 billion ($65.8 million) for the quarter ended Sept. 30, from Rs 3.31 billion a year earlier, the Kolkata-based bank said in a statement. READ MORE

2:24 PM

MMTC eyes 10% gain in export earnings due to consistent rupee slump

 

State-controlled trading entity MMTC Ltd is eyeing 10 per cent growth in its export earnings in this financial year, led by consistent rupee fall. MMTC expects the realisations to shore up from exports of key bulk minerals like iron ore and chromite ore, intermediate products like pig iron and some finished steel products. Read More

2:19 PM

Bandhan Bank gains after Q2 results 

2:17 PM

NEWS ALERT

Bandhan Bank reports Q2 net interest margin at 10.3% Vs 9.3% YoY

 

2:14 PM

NEWS ALERT

Bandhan Bank NII up 55.6% on year at Rs 10.78 bn

2:13 PM

NEWS ALERT
Bandhan Bank Q2 profit rises 47% to 4.88 bn, stock rises 6%

2:10 PM

NEWS ALERT

Bandhan Bank posts profit of Rs 4.88 bn in Q2FY19

2:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,777.61	+478.14	+1.39
S&P BSE SENSEX 50	10,933.41	+162.46	+1.51
S&P BSE SENSEX Next 50	30,645.80	+947.20	+3.19
S&P BSE 100	10,678.91	+184.04	+1.75
S&P BSE Bharat 22 Index	3,293.84	+85.16	+2.65

1:49 PM

Free fall: Volatile week erodes one-year gains for large-cap schemes

 

Large-cap schemes that were holding fort among the actively-managed plans have started giving in amid the rise in market volatility. These schemes have seen most of their one-year returns getting wiped off in the last seven trading sessions. As of September 27, the average returns for these schemes stood at 10.3 per cent. Following last week’s sell-off, the one-year returns have fallen to just about 1.5 per cent, shows the data from Value Research. Read More

1:39 PM

Nifty PSU Bank surges over 4% in trade
 

1:30 PM

YES Bank, DHFL, Goa Carbon, Philips Carbon gain over 40% from 52-week lows

 

Shares of YES Bank, Dewan Housing Finance Corporation, Goa Carbon, Philips Carbon Black and Infibeam Avenues have rallied more than 40% from their respective 52-week lows. YES Bank was up 5% to Rs 237 in intra-day trade, extending its past two days 9% gain on the BSE, after the board of private sector lender inducted TS Vijayan, former chairman of Insurance Regulatory and Development Authority of India (IRDAI) and Life Insurance Corporation of India (LIC), and OP Bhatt, former CMD of State Bank of India (SBI), as external experts in the committee. Read More

1:17 PM

Inflation likely rose to RBI's 4% target in Sept on high fuel cost: Poll

 

India's retail inflation likely sped up in September on higher food and fuel costs, pushed up by a battered rupee and suggesting further policy tightening from the Reserve Bank of India, a Reuters poll found. The Indian central bank last week held interest rates unchanged, surprising many market watchers who anticipated a third consecutive hike, but shifted its stance from "neutral" to "calibrated tightening" in a nod to pricing pressures. Read More

1:02 PM

IT stocks underperform; TCS, Infosys slip 3% each

Shares of IT companies slipped in the intraday trade on Wednesday as the rupee recovered from all-time lows. Shares of TCS were trading two per cent lower at Rs 2,050 a piece on BSE. The stock dropped as much as 2.87 per cent to Rs 2,030 during the trade. On similar lines, Infosys was down over two and a half per cent at Rs 698.75. HCL Tech was trading at Rs 1,045.50, down 2 per cent. READ MORE

12:45 PM

Here's how the IL&FS crisis spread to NBFC stocks in Indian markets

 

Advait Rao Palepu explains how the crisis at IL&FS spread to NBFC stocks. What caused the recent sell-off in equity markets, particularly in non-banking financial company (NBFC) stocks? Over the past two to three years, NBFCs have over-borrowed funds from the commercial paper (CP) market, which, regulators and analysts believe, has led to asset-liability management (ALM) mismatches. Read More

12:30 PM

Sebi allows foreign entities in commodity derivatives segment, with a rider

 

Nearly five months after issuing a consultation paper on the subject, the Securities and Exchange Board of India (Sebi) said it was allowing eligible foreign entities (EFEs) to trade in commodity futures here. However, there is a minimum net worth requirement for such EFEs, at $500,000. Such an EFE may approach an authorised stock broker with a minimum net worth of Rs 250 million for registration. Read More

12:16 PM

NEWS ALERT India VIX down 7.30%  

12:14 PM

Nifty IT index plunges over 2%

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,651.79	+352.32	+1.03
S&P BSE SENSEX 50	10,896.87	+125.92	+1.17
S&P BSE SENSEX Next 50	30,569.04	+870.44	+2.93
S&P BSE 100	10,644.53	+149.66	+1.43
S&P BSE Bharat 22 Index	3,276.31	+67.63	+2.11

11:45 AM

HEG zooms 20% after BofAML initiates coverage with 'Buy' rating

 

Shares of graphite electrode manufacturer HEG are locked in upper circuit of 20% at Rs 3,871 per share on the BSE after Bank of America Merrill Lynch (BofAML) initiated coverage of the stock with a 'Buy' rating. The brokerage firm set price objective of Rs 6,700 - an upside potential of 108% against its Tuesday’s closing price of Rs 3,226, plus an 8.5% forecast dividend yield. Read More

11:36 AM

RESULT PREVIEW Motilal Oswal Securities

We expect MOSL Universe PAT to grow 9% YoY. Global Cyclicals are likely to drive performance for the second straight quarter (with 23% YoY profit growth) and account for 81% of incremental profits. Defensives are expected to post muted profit growth of 7%, aided by IT/Consumer but dragged by Healthcare.

Profit growth for MOSL Universe excluding PSU Banks and Private Corporate Lenders is estimated at 13%. Auto, Telecom, PSU Banks, Healthcare and Cement are expected to report muted numbers. We expect Nifty sales, EBITDA and PAT to increase by 24%, 12% and 12% on a base of 12%, 17% and 15% growth, respectively.

 

Our Nifty EPS estimates for FY19/20 have been cut by 1.5%/2% to INR539/INR674. We are building in Nifty EPS growth of 18%/25% for FY19/20. Recent headwinds pose a significant risk to the 2HFY19 estimates.

11:34 AM

RESULT PREVIEW ICICI Securities on paint companies

Paint companies under our coverage are likely to maintain their Q1FY19 momentum of robust decorative paints volume growth. Accordingly, for Q2FY19, we expect Berger Paints (BRGR) and Kansai Nerolac (KNPL) to lead with ~13%overall volume growth, followed by Asian Paints (APNT) with ~12% growth.
 

Double-digit volume growth would be strongly positive given the higher base due to early festive season in Q2FY18 and the impact of Kerala floods. Value growth is expected to be higher than volume growth driven by aggregate price hike of ~3.5% in Mar’18 and May’18, partially offset by deteriorating sales mix. We expect

revenue growth at 14% for APNT and Pidilite (PIDI) and a stronger 15% growth for BRGR and KNPL.

11:33 AM

ICICI Securities on real estate sector

All developers in our coverage universe except for Oberoi Realty and Sunteck Realty have switched to the Project Completion Method (Completed Contracts) from Q1FY19 under IND-AS 115 from the Percentage Completion Method. The retrospective adoption of IND-AS 115 led to developers having to write back all the revenues and profits booked till date on ongoing residential/commercial sale projects which are not 100% complete (Occupation Certificate along with Registration of Sale Agreement) in Q1FY19.

We prefer developers with a strong operational rental asset portfolio with reasonable debt levels and/or presence in mid-income housing. DLF (BUY), Oberoi Realty (BUY), Prestige Estates Projects (BUY), Brigade Enterprises (BUY) and The Phoenix Mills (BUY) are our top picks in this segment.