Key benchmarks hit fresh intraday high

Key benchmark indices extended intraday gains and hit fresh intraday high in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was up 390.86 points or 1.18% at 33,603.99. The Nifty 50 index was up 103.75 points or 1% at 10,439.05.

The market got a boost from the latest World Bank report, which elevated India into the top 100 in the World Bank's Ease of Doing Business rankings. Positive leads from Asian markets and overnight gains in the US market also boosted investors' sentiment.

The market opened higher, tracking positive global cues. Buying gained momentum in morning trade, which propelled key indices to hit record high levels.

The Sensex rose 406.46 points, or 1.22% at the day's high of 33,619.59 in early afternoon trade, its record high level. The index rose 127.49 points, or 0.38% at the day's low of 33,340.62 in opening trade. The Nifty rose 106.30 points, or 1.03% at the day's high of 10,441.60 in early afternoon trade, its record high level. The index rose 47.75 points, or 0.46% at the day's low of 10,383.05 in opening trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.69%. The BSE Small-Cap index was up 0.91%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,649 shares rose and 934 shares fell. A total of 121 shares were unchanged.

Telecom shares were in demand. Idea Cellular (up 6.35%), Tata Teleservices (Maharashtra) (up 4.98%), MTNL (up 1.18%) and Reliance Communications (up 0.29%), edged higher. Telecom tower infrastructure provider Bharti Infratel was down 0.72%.

Telecom major Bharti Airtel was up 8.91%. The company's consolidated net profit fell 77% to Rs 343 crore on 10% decline in total revenue to Rs 21777 crore on an underlying basis in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 31 October 2017.

The company's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) declined 15.4% to Rs 8004 crore in Q2 September 2017 over Q2 September 2016. EBITDA margin dropped 1.6% year-on-year at 36.8% in Q2 September 2017, led by India SA margin drop of 5% on an underlying basis (viz. adjusted for Africa/Bangladesh divested operating units and tower assets sale).

In a statement, Gopal Vittal, Bharti Airtel MD and CEO, India & South Asia said, the financial stress in the industry continues due to double digit revenue decline and will be further accentuated by the reduction in IUC rates in the next quarter. This will eventually force operator consolidation and exits as witnessed in the recent past. Airtel remains committed to its goal of increasing revenue market share in this competitive environment by providing superior customer experience and strategically investing behind building more data capacities, Vittal added.

Most IT shares rose. Persistent Systems (up 1.53%), MphasiS (up 1.25%), Tech Mahindra (up 0.97%), Oracle Financial Services Software (up 0.74%), Infosys (up 0.41%), Wipro (up 0.27%) and Hexaware Technologies (up 0.02%), edged higher. MindTree (down 0.61%), TCS (down 1.08%) and HCL Technologies (down 1.47%), edged lower.

Cigarette maker VST Industries was up 4.73% after the company reported Q2 September 2017 results after market hours yesterday, 31 October 2017. VST Industries' net profit rose 42.98% to Rs 44.01 crore on 55.95% decline in gross sales to Rs 239.34 crore in Q2 September 2017 over Q2 September 2016.

With the implementation of Goods and Services Tax (GST) with effect from 1 July 2017, the company's cigarette business is now subjected to GST and compensation cess in addition to central excise (currently only National Calamity Contingent Fund). Due to such restructuring of indirect taxes, the figures for gross sales (net of GST and compensation cess) and excise duty for Q2 September 2017 is not comparable with year ago period.

VST Industries' board approved appointment of Devraj Lahiri, the existing Deputy Managing Director, as the Managing Director of the company with date of appointment as 28 November 2017.

IIFL Holdings rose 3.23% after the company's consolidated net profit rose 25.1% to Rs 229.13 crore on 30.9% rise in total income to Rs 1592.03 crore in Q2 September 2017 over Q2 September 2016. The announcement was made after market hours yesterday, 31 October 2017. The stock had risen 4.79% to Rs 611.25 ahead of the results yesterday, 31 October 2017.

Nirmal Jain, Chairman, IIFL Holdings, commented on the financial results that the company is pleased to report continued robust growth in all the core businesses. The PSU banks' recapitalization is the bold and timely initiative to reinvigorate the economy. The company's loans and mortgages business strategy of focusing on retail lending and digital delivery, makes it largely immune from banks' competition.

Wealth and asset management continues to grow on the back of innovative products with customer centricity. The company is excited about the imminent listing of 5paisa, a company demerged with mirror shareholding. 5paisa business model aims to offer financial products at lowest cost digitally, as the company plans no branches, no relationship managers and little investment in research, he added. Separately, IIFL Holdings decided to infuse Rs 150 crore by way of additional equity capital into its broking subsidiary, India Infoline, to meet its business requirements. The announcement was made during market hours today, 1 November 2017.

On the macro front, growth in India's manufacturing sector lost momentum in October 2017. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 50.3 in October 2017, from 51.2 in September 2017. This indicated a broad stagnation in the health of the manufacturing sector during October. At the sector level, improvements in consumer goods negated deteriorations in investment and intermediate goods. An index reading above 50 indicates an overall increase in that variable, below 50 an overall decrease. The data was unveiled during trading hours today, 1 November 2017.

Separately, India's eight core infrastructure sector, carrying 40.27% of the weight of items included in the Index of Industrial Production (IIP), has shown healthy 5.2% increase in its output in September 2017 over September 2016. Its cumulative growth was 3.3% in April-September 2017. The data was disclosed after market hours yesterday, 31 October 2017.

The World Bank, after market hours yesterday, 31 October 2017, released the Doing Business (DB) Report, 2018. India ranks 100 among 190 countries assessed by the Doing Business Team. India has leapt 30 ranks over its rank of 130 in the Doing Business Report 2017.

The World Bank report recognized India as one of the top 10 improvers in this year's assessment, having implemented reforms in 8 out of 10 Doing Business indicators. India is the only large country this year to have achieved such a significant shift. On the "distance to frontier metric," one of the key indicators in the survey, India's score went from 56.05 in Doing Business 2017 to 60.76 in Doing Business 2018. This means last year India improved its business regulations in absolute terms - indicating that the country is continuing its steady shift towards best practice in business regulation.

The report noted that India has adopted 37 reforms since 2003. Nearly half of these reforms have been implemented in the last four years. The report captured reforms implemented in 190 countries in the period 2 June 2016 to 1 June 2017.

Meanwhile, the Prime Minister, Narendra Modi hailed India's historic jump of 30 ranks in the World Bank's Doing Business Report, 2018 released yesterday. While terming the improvement in the rankings as historic, the Prime Minister in a series of tweets, said that the jump is the outcome of the all-round and multi-sectoral reform push of Team India. Modi promised to take steps to further improve the rankings.

Overseas, Asian shares were trading higher mirroring a positive close in the US market overnight. The Caixin China General Manufacturing Purchase Managers' Index (PMI) stood at 51 for October, flat from the September level, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co. A reading above 50 indicates expansion, while a reading below reflects contraction.

The headline Nikkei Japan Manufacturing PMI edged fractionally down in October 2017 to 52.8, from 52.9 in September 2017.

US stocks closed higher on Tuesday, with the Nasdaq ending at a record as quarterly results kept equities drifting near all-time highs. The Dow Jones Industrial Average rose 0.12%, the S&P 500 rose about 0.09% and the Nasdaq Composite Index advanced 0.43%.

US consumer confidence rose more than expected in October to the highest in almost 17 years as Americans grew more confident about the economy and job market, according to figures Tuesday from the New York-based Conference Board. Confidence index rose to 125.9, highest since December 2000, from 120.60 in September 2017.

The US Federal Reserve concludes a two-day policy meeting today, 1 November 2017, at which it is expected to leave interest rates unchanged. Most market participants expect the US central bank to resume hiking rates in December 2017.

Powered by Capital Market - Live News