MUHURAT TRADING WRAP: Sensex up 246 points; best Muhurat-day gain in 10 yrs

Mahindra and Mahindra (M&M) rose over 2 per cent to Rs 795 on the BSE, while Tata Motors gained 1 per cent to Rs 195. Infosys rose 1.5 per cent to Rs 677

6:50 PM

Gainers and losers in Muhurat trade on the BSE Sensex

6:36 PM

Market at close

The S&P BSE Sensex ended at 35,238, up 246 points (0.70 per cent) and the Nifty 50 index rose 68 points (0.65 per cent) to settle at 10,598 levels.

6:12 PM

MARKET COMMENT Mahesh Nandurkar, executive director and India Strategist at CLSA

We maintain our cautious view on the market due to a combination of continued premium valuation, despite the correction coupled with the triple macro worries of rising rates, depreciating INR and political uncertainties. Thus, we maintain our large-cap bias in top picks. Notwithstanding the recent underperformance, we continue to believe that Reliance Industries (RIL) is a good stock to own in the times of market turmoil as the business fundamentals continue to be strong and the under-ownership should protect downside

6:08 PM

Manappuram Finance gains 6% post Q2 results

Shares of Manappuram Finance have moved higher by 6% to Rs 87.40 per share on the BSE after the company reported 41% year-on-year (Y-o-Y) jump in consolidated net profit at Rs 2.24 billion for the quarter ended September 30, 2018 (Q2FY19). It had a profit of Rs 1.59 billion in the year-ago quarter.
 

Total consolidated operating income during the quarter grew 22% Y-o-Y at Rs 10.14 billion against Rs 8.31 billion reported in the year-ago quarter. Consolidated assets under management (AUM) grew 25 % to Rs 172 billion from Rs 137 billion in the year-ago quarter. READ MORE

6:07 PM

MARKET COMMENT Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas

 

We feel general and state election will continue to keep the markets volatile in the coming weeks. Earnings season so far has mainly been lack luster this quarter. Investors with a longer term horizon can use the volatility to their benefit to get into quality companies, where there is earnings visibility and valuation comfort. We prefer export-oriented companies such as TCS and Biocon, we also like the private banking space with Axis Bank and HDFC Bank being our preferred picks.

6:01 PM

STOCKS TO BUY IN SAMVAT 2075

Here's a list of stocks recommended by top brokerage houses that can light up your portfolio this Diwali CLICK HERE FOR MORE

Diwali Samvat 2075 logo

5:59 PM

Markets got US midterms right, no violent repricing was needed; what next?

For once, the consensus came true. Markets got it right and no violent repricing in equities was needed. A divisive episode of U.S. politics came and went, and investors are exactly where they were before. The question for bulls: can it actually last?

 

“This was our base case,” said Ben Phillips, chief investment officer of EventShares, which oversees the U.S. Policy Alpha ETF. “As far as markets are concerned, it is actually a decent outcome.” READ MORE HERE

5:58 PM

MARKET COMMENT Raamdeo Agrawal, co-founder and joint managing director, Motilal Oswal Financial Services

The current market scenario is not very comfortable. While the frontline indices have slipped around 13 per cent each, market-wide losses are quite deep. Individual portfolios have been hurt much more. Bulk of the retail portfolios are down around 25 – 30 per cent. The loss for foreign investors will be more given the rupee’s fall. Moreover, market are concerned about the outcome of the state polls. Though better management of economy helps, in India, politics does create volatility but does not change the fortune of the companies. The Nifty50 should hover around the current levels for now

5:54 PM

MARKET COMMENT Gautam Chhaochharia, head of India research, UBS Securities

 

The market has de-rated from 19x 1yr fwd PE to 16x. We do not expect the recent liquidity squeeze to turn into a prolonged credit crunch, though the era of easy money of the last 3-4 years is behind us. The worst of INR depreciation vs. GEMs may also be over. 

 

However, two risks remain: 1) Will Modi win in 2019?; and 2) retail flows. 2HFY19 may also not enthuse markets, as the base effect is wearing off and the impact of tight liquidity is being felt. 

 

We revise our Nifty scenarios: 9500 as our base case for Mar-19 and 11100/8300 as upside / downside scenarios. The base case is premised on 13%/17% earnings growth in FY19/FY20 (7-9% lower than Street estimates) and 16x PE, in line with the last 5 year average

GAUTAM CHHAOCHHARIA

5:53 PM

TOP CONTRIBUTORS TO SENSEX

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
INFOSYS	674.95	8.15	1.22	253417.87	33.35
ITC	279.45	2.05	0.74	339640.24	27.02
H D F C	1816.40	13.95	0.77	309561.77	25.49
RELIANCE INDS.	1110.10	6.65	0.60	377688.95	24.51
ICICI BANK	356.00	2.80	0.79	227323.05	19.40
M & M	794.25	16.05	2.06	77396.66	17.19

5:37 PM

Opening gainers on BSE Sensex

5:34 PM

Market at open

 

At 5:30 om, The S&P BSE Sensex was at 35,259, up 267 points, while the broader Nifty 50 index was at 10,609, up 79 points.

5:15 PM

Market at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,106.26	+114.35	+0.33
S&P BSE SENSEX 50	11,002.21	-1.58	-0.01
S&P BSE SENSEX Next 50	31,817.48	-112.07	-0.35
S&P BSE 100	10,796.42	-7.07	-0.07
S&P BSE Bharat 22 Index	3,444.92	-20.83	-0.60

5:04 PM

RBI's Diwali gift to infra firms: Min ECB holding period pruned to 3 years

In a major relief to Indian companies and banks, the Reserve Bank of India (RBI) on Tuesday reduced the minimum average maturity requirement for ECBs raised by eligible borrowers in the infrastructure space, from five years currently to three years READ MORE HERE

4:54 PM

Motilal Oswal Research recommends Maruti as top Samvat 2075 pick

Maruti Suzuki

Target: Rs 8,484
 

We are positive on Maruti, considering its (a) multi-year favorable product lifecycle, (b) improvement in product mix (increasing share of premium products), aiding realizations and consequently margins, (c) reducing JPY exposure, (d) lower capex intensity, (e) improvement in FCF conversion, and (f) sharp improvement in RoIC. We believe Maruti would gain further market share, driven by 10% volume CAGR over FY18-21. We expect the earnings growth to remain strong for Maruti, driven by higher volumes and margins.

4:53 PM

Buy Glenmark Pharma for a target of Rs 710: Prabhudas Lilladher

BUY GLENMARK PHARMA

CMP: Rs 657.50

TARGET: Rs 710

STOP LOSS: Rs 625

 

The stock has taken support at the significant 200DMA moving average which was at 580 levels and thereafter a steady gradual rise with a positive candle recently has made the stock look attractive and has signified a positive bias with potential for further upward movement in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 710 keeping a stop loss of 625. Click here for more

4:48 PM

MARKET COMMENT Sean Darby, Chief Global Equity Strategist, Jefferies

The Democrats won back control of the House of Representatives while the Republicans strengthened their grip on the Senate. A split Congress was very much the base case and the one discounted by the equity markets in our view. Hence, the bond and currency markets were little changed post the result. Looking forward, infrastructure investment, a theme championed by both parties, might be back on the agenda

We have had a number of questions about the level of US real rates that the equity market can survive. With nominal GDP well above ten-year rates, investors generally felt that a real rate close to 1% was quite bearable. We would concur; however, a real rate at 2% has historically suffocated equity performance. Don’t short the S&P 500

4:41 PM

Jhunjunwala takes his biggest hit in 10 quarters

A smallcap focus may be weighing on Rakesh Jhunjhunwala’s portfolio in this downturn. The disclosed value of his portfolio showed a double-digit decline in the three month ending September. This is the biggest fall in at least the past ten quarters. The portfolio was worth Rs 123.33 billion at the end of June 2018 READ MORE HERE

4:38 PM

WEB EXCLUSIVE Outlook for Indian economy for Samvat 2075

'Economy is facing several pools of uncertainty'

Looking forward, it does appear that GDP growth will move towards the 7.5% mark with a downside risk in case the present liquidity crunch affects prospective investment. Industrial growth would be one of the drivers of the economy with growth between 5-6% for the year. The trend of accelerated growth on account of low base GST effect has gotten diluted and the future growth will be based on higher spending READ MORE HERE

4:29 PM

'After underperformance, gold is now witnessing the start of next bull run'

Gold has underperformed many assets classes over the last few months or even for last few years, and seems to be losing the safe haven title. Comex gold prices have been in a corrective mode falling from $1365 to making lows of $1160 in a span of six months. But in the last couple of months gold, has been consolidating in the range of $1,180 and $1,220, despite high volatility in the dollar following escalating trade war concern between the US and China. The trading range for gold has been very narrow, but prices on the domestic bourses have been elevated primarily on the back of weakness in the rupee which has weakened by over 14% (YTD). Trade tension between the US and China have taken center stage in global geopolitics, where the US until now has announced a few rounds of imposition and hinted to impose more sanctions. We have seen similar retaliation from China, but that too hasn’t impressed gold much. READ MORE HERE

Representative image

4:27 PM

71 stocks beat markets in last 3 Samvats; Indiabulls Integrated up 3,400%

71 stocks have outperformed the market in the past three consecutive Samvat years with Indiabulls Integrated surging a huge 3,400% during this period. Of these, nine companies are from chemicals, six from auto ancillaries, five each from financials and pharmaceuticals and four from paper industries. 24 stocks that form a part of this list have recorded returns of over 30% each between Samvat years 2072 and 2074 READ MORE

4:26 PM

Five key factors that will impact markets in Samvat 2075

Experts say volatility is likely to continue in Samvat 2075 as well, owing to a politically heavy calendar (upcoming state elections and general elections scheduled for 2019) and macro challenges READ MORE

4:26 PM

'See a bright future for markets in Samvat 2075 amid the current gloom'

The current year has been a complete washout. Everything that could have gone wrong, did in this Samvat 2074. Crude prices have surged 47 per cent till October and the Rupee plummeted 13.3 per cent against the dollar. Monsoon, too, was below normal. 
 

As if that was not enough, the US Federal Reserve (US Fed) went into a rate hike frenzy – hiking rates four times. Trump out-competed himself in tearing out one trade agreement after another and re-wrote almost everything, except the Bretton Woods Agreement. READ MORE HERE

4:26 PM

Five stocks that doubled your money in Samvat 2074

Graphite manufacturer HEG has emerged as the top gainer in the BSE 500 index as the stock moved up 237 per cent during the period. L&T Infotech (118 per cent), L&T Technology Services (115 per cent), Graphite India (109 per cent) and NIIT Technologies (100 per cent) were among the others that made it to the list of chartbusters that gave over 100 per cent return. In comparison, the S&P BSE Sensex gained a modest 5.7 per cent during Samvat 2074 while NSE's Nifty50 index has gained around 2 per cent CLICK HERE FOR THE FULL LIST

4:25 PM

Stocks that could add sparkle to your portfolio in Samvat 2075

In the past one year, though Nifty 50 has given a return of around 3 per cent, BSE Midcap and BSE Smallcap have plummeted 8 and 15 per cent, respectively. The positive returns of Nifty50 were largely driven by just 5 stocks i.e. Infosys, TCS, Reliance Industries, ICICI Bank and HDFC Bank. The carnage in mid and small cap stocks was caused mainly by mutual funds’ selling owing to new categorization of MF schemes, GSM/ASM circular of SEBI and change in equity taxation. In addition, liquidity crisis led by IL&FS default, was extended to other NBFCs, which were already reeling under increasing interest rate environment READ MORE

4:18 PM

Indices end flat on the last day of Samvat 2074; PCJ tanks 12%

 

Paring most of the morning gains, the domestic benchmark indices ended the last trading day of Samvat 2074 on a flat note on Tuesday amid selling in banking and FMCG counters. The S&P BSE Sensex slipped below the crucial 35,000-mark to settle at 34,992, up 41 points while NSE's Nifty50 index gained just 6 points to close at 10,530.  For Samvat 2074, the S&P BSE Sensex recorded a gain of over 7 per cent. READ MORE

4:17 PM

MUST READ Only 2 of past 5 Samvats gave double-digit returns; 2074 was lackluster

Samvat 2074, which ended on Tuesday, was yet another year of lacklustre performance for the benchmark BSE Sensex. It clocked gains of only 7.4 per cent, less than the 7.8 per cent yield on the risk-free 10-year government bond. In the past five years — except Diwali 2014, when it shot up 26.4 per cent year-on-year (YoY), and 16.6 per cent last year — Sensex returns have been disappointing CLICK HERE FOR MORE

4:13 PM

Oil holds near $72 as supply ample despite Iran sanctions

Oil held around $72 a barrel on Wednesday, close to its lowest since August, as rising U.S. inventories and sanction waivers allowing Iran to keep exporting crude reinforced an outlook for ample supplies. The American Petroleum Institute, an industry group, said on Tuesday U.S. crude stocks rose by 7.8 million barrels last week, more than analysts had forecast. The government's official supply report is due at 1530 GMT.

4:13 PM

GLOBAL MARKET UPDATE

Wall Street stock futures and Asian shares held earlier gains on Wednesday after Democrats won control of the U.S. House of Representatives, boosting the party's ability to block President Donald Trump's political and economic agenda. The Democrats' House win creates a clear hurdle for Republicans to easily pass legislation through both chambers of Congress, clouding the outlook for some of Trump's key economic proposals.

The election results pushed down the 10-year U.S. Treasuries yield about 2 basis points to 3.193 percent, off its seven-year high of 3.261 percent touched a month ago. But the debt market also remains under pressure from this week's record volumes of longer-dated government debt supply

4:11 PM

We welcome our readers and wish them a happy and prosperous Samvat 2075