MUHURAT TRADING WRAP: Sensex gains 192 pts; Tata Motors surges 16%

In the broader market, small-caps outpeformed the benchmark in the trade. The S&P BSE small-cap index closed 1.2 per cent higher at 13,310 level

7:42 PM

MARKET COMMENT :: Dhiraj Relli, MD & CEO, HDFC Securities

Markets continued the recent positive trend in muhurat trade. There is a visible turnaround in sentiments and one hopes that we may witness a broader up move in the markets soon

7:41 PM

MARKET COMMENT :: Motilal Oswal, MD & CEO, Motilal Oswal Financial Services

I am optimistic about the medium to long term perspective. I see tremendous interest amongst the foreign investors. Brand India is at it all time high. Government is also proactively addressing many basic issues. After the Big Bang corporate tax cut, I am hopeful that there will be individual income tax rate cut and see many more reforms on the way

7:40 PM

Markets to remain closed on Monday

Markets will remain closed on Monday, October 28 on account of Diwali-Balipratipada

7:39 PM

Nifty snapshot

7:38 PM

Market at close

7:38 PM

Sensex heat map

7:37 PM

Market at close

7:13 PM

Samvat 2076 will be an opportunity for investors to find hidden gems

Whenever we go back in history to identify defining moments, we normally tend to ignore the immediate consequences of such events and focus only on the long-term impact of the same. However, when you are in the midst of the aftermath, you are bound to get overwhelmed and affected. In addition to demonetisation and the impact of good and services tax (GST), the recent defining moment was the fall of the infallible IL&FS and the resulting trust deficit that engulfed the financial markets, leading to disastrous consequences. READ MORE

7:09 PM

TECHNICAL TRENDS :: 10 stocks to buy in Muhurat trading for Samvat 2076

Kansai Nerolac Paints Ltd (KANSAINER): This counter has passed the resistance of Rs 545 – a level it has been struggling to cross since the past one year. On a bigger scale, Kansai Nerolac is showing stability above Rs 500 levels. The positive trend should take this counter to Rs 600 levels. The support comes in around Rs 510 READ MORE HERE

7:08 PM

Cement stocks gain during Muhurat Trading

COMPANY NAME	LATEST	HIGH	LOW	CHG (rs)	CHG(%)	VALUE (rs CR)	VOLUME
SH. DIGVIJAY CEM	21.15	21.50	20.00	1.75	9.02	0.95	447172
SHIVA CEMENT	9.69	10.30	9.55	-0.02	-0.21	0.14	145183
UDAIPUR CEMENT	12.50	12.61	12.20	0.40	3.31	0.04	35294
INDIA CEMENTS	82.60	83.45	81.75	1.10	1.35	0.28	34128
BURNPUR CEMENT	1.18	1.24	1.18	-0.06	-4.84	0.00	23507
SAURASHTRA CEM.	40.05	41.50	38.20	0.40	1.01	0.04	10676

7:07 PM

MARKET COMMENT :: U R Bhat of Dalton Capital

Samvat 2076 will be a tale of two halves. While things should improve back home post March 2020 as the policy measures announced by the government and the Reserve Bank of India (RBI) bear fruit, the sentiment till then should remain subdued. Global factors, especially the US – China trade tussle, monetary policy of global central banks and geopolitical issues will also play an important role. Expect Nifty50 to trade in a broad range of 10,500 to 13,000 over the next year READ MORE HERE

7:04 PM

MARKET COMMENT :: Andrew Holland of Avendus Capital

The mid- and small-cap indices corrected substantially during the year. The broader market performance has been forewarning about a big slowdown in the economy. Further, the gains made by the benchmark indices was driven by only a few stocks

Andrew Holland

7:02 PM

MARKET COMMENT :: Jyotivardhan Jaipuria of Valentis Advisors

Samvat 2076 will be a better year for investors, especially since we expect the broader markets to do better after the battering that the small- and mid-cap stocks have seen over the past year READ MORE

Jyotivardhan Jaipuria, Founder & MD, Valentis Advisors

6:59 PM

IRCTC trades higher

After a steller listing earlier this month, IRCTC continues to gain ground

6:57 PM

Can Fin Homes trades higher

6:52 PM

Motilal Oswal Insitutional Equities on L&T

We cut our core E&C EPS estimate by 3.4%/2.6% for FY20/21, incorporating the miss on the operating performance. Consol. EPS remains largely unchanged. We continue valuing LT's core E&C business at FY21E target multiple of 22x. Accounting for the current market price of listed subsidiaries, our target price stands at Rs 1,830 (prior: Rs 1,900). Buy.

6:49 PM

NEWS ALERT | Sold 13,500 vehicle units on Dhanteras: M&M via BSE filing

-- This figure was substantially higher than the deliveries last year on Dhanteras.

 

6:47 PM

ICICI Bank hits new high on strong operational performance in Q2

Shares of ICICI Bank hit a new high of Rs 473, up 1 per cent on the BSE on Sunday after the bank reported healthy operational performance driven by net interest income (NII), which grew 26 per cent at Rs 8,057 crore on year-on-year (YoY) basis in September quarter (Q2FY20). The bank’s net interest margin (NIM) improved to 3.64 per cent in Q2FY20 from 3.33 per cent a year ago.
 

Asset quality also improved with gross non-performing assets (NPA) declining to 6.37 per cent with improvement of 12 basis points (bps) while net NPA declined to 1.6 per cent from 1.77 per cent in Q1FY20. READ MORE

6:45 PM

NEWS ALERT :: GVK Airports inks agreement with ADIA, others for Rs 7,614 crore

GVK Airports signed definitive agreements today with three investors – ADIA, Abu Dhabi; PSP Investments, Canada and the NIIF, India for an aggregate investment of Rs. 7614 crore. Proceeds from this transaction will be used by GVK to primarily retire debt obligations of its holding companies significantly and fund the purchase of additional shares in MIAL. GVK will continue to manage both airports and also they will be branded as GVK Airports.

(Source: Company release)

 

6:44 PM

Gold likely to move higher in Samvat 2076; make a strategic allocation

nvestors who put in money in gold as an asset class have reaped a good harvest with prices moving up nearly 22 per cent thus far in Samvat 2075. However, the run-up should not deter investors from investing in the yellow metal in Samvat 2076.

 

Following the remarkable rally over the last few months, gold prices are now consolidating. While in the near term, gold can remain range-bound as there are various conflicting forces at play and no single factor seems to influence the price direction, there are triggers that can propel prices to higher levels over the long term. READ MORE

6:42 PM

Diwali Picks :: Motilal Oswal Securities

Large-caps: ICICI Bank, SBI, HDFC, Bharti Airtel, L&T, HUL, Titan.

Mid-caps: Indian Hotels, MMFS, Ashok Leyland, ABFRL, JK Cement, Colgate, Petronet LNG, PI Industries.

 

Contra Ideas: Coal India, Motherson Sumi, Page Industries, LIC Housing Finance, Birla Corp.

6:41 PM

Jefferies on Maruti Suzuki

Maruti's 2Q EBIT was ahead of estimate helped by 2% higher realization & better margin. While much of the margin beat was due to inventory accounting and will reverse, cost control also helped. Overall, EBIT margin of 4% despite 32% YoY volume decline reflects better margin resilience than previous down-cycles. Management also indicated slight positive YoY trends in festive season so far though its sustainability without very high discounts remains to be seen

6:40 PM

HDFC Securities on Hexaware

Hexaware’s ‘low-double digit’ organic growth trajectory is sustainable supported by (1) IMS/BPM and ADM service-lines, (2) Cross-sell opportunities from Mobiquity and (3) Strengthening Guidewire, Pega and Adobe partnership. While concerns around BFS (large account) persist, improved offerings in the vertical (Backbase, AWS) will support growth. We build USD rev/EPS of 15/13% CAGR over CY18-21E factoring USD rev growth at 17.1/15.7/12.1% and EBITDA% at 15.1/15.3/15.6% for CY19/20/21E, respectively. Key risks include escalation in client specific challenges (BFS) and low NN wins.

6:39 PM

Kotak Securities on telecom sector

The adverse SC judgment on the longstanding AGR case is a massive body blow to Bharti and VIL, in our view. Per unauthenticated media reports, the two companies are liable to pay Rs217 bn and Rs283 bn, respectively. These liabilities pertain only to underpaid license fee and associated penalty and interest.

Related demand on underpaid spectrum usage charges is also quite likely – this demand could be 60-70% of the LF-related demand. We change our rating on VIL to NR (not rated) given the high degree of uncertainty post this event. Upgrade Bharti to BUY with a revised FV of Rs450/share (from Rs370) and retain REDUCE on Bharti Infratel with a revised FV of Rs200/share (from Rs275).

6:37 PM

MARKET COMMENT :: Chris Wood of Jefferies

World stock markets are increasingly optimistic for a US-China trade deal this quarter, as is GREED & fear. The key question perhaps is whether it is a “mini deal”, which is the consensus, or something more substantial where the existing tariffs are dropped. GREED & fear would also view it as positive, especially for Asia and emerging market equities, if the deal contains a currency component.

 

Markets are expecting, as is GREED & fear, another 25bp cut by the Fed this week. The data that give the Fed the excuse to ease again were the latest ISM data and the latest average hourly earnings growth. Still, if the Fed does ease, as expected, it will be ignoring again the recent pickup in reported US inflation data.

Chris Wood

6:32 PM

Tata Motors rallies 18% as net loss narrows in September 2019 quarter

Shares of Tata Motors have rallied 18 per cent to Rs 148 on the BSE in Muhurat trading Sunday, after the company reported a better-than-expected EBITDA (earnings before interest, tax, depreciation and amortization) margin at 10.9%, up 157bps year-on-year (YoY) and 607bps quarter on quarter (QoQ) in September quarter of financial year 2019-20 (Q2FY20). Margin expansion was attributed to Jaguar Land Rover (JLR) business despite a drag from domestic business.
 

Till 06:15 pm; a combined 780,794 shares changed hands and there were pending buy orders for 23 million shares on the NSE and BSE. READ MORE

6:21 PM

ICICI Bank reacts to Q2 numbers

6:19 PM

Samvat 2076 trade :: Markets open higher

Among Sensex stocks, Tata Motors leads charge

6:16 PM

Indian economy on life support, structural reforms need of the hour

If the India story isn’t dead, it’s certainly on life support. The economy grew at 5 per cent in the last quarter for which data is available, leading to a rash of downward recalibrations of growth for the full financial year. (India’s financial year begins on April 1) Most recently, the Economist Intelligence Unit suggested that growth in FY20 will be 5.2 per cent -- significantly below potential. READ MORE

6:12 PM

Nomura on Axis Bank

Asset quality is bottoming out, and operating performance should stabilise. Large capital infusions for PSUs and private corporate banks should lead to faster ramp-up to normalised ROEs.