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F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar'16 expiry

The Nifty Metal index rose 1.92 per cent led by a rise in Vedanta, Hindalco Industries. The Nifty Bank index, too, jumped 1.82 per cent led by HDFC Bank and IndusInd Bank

SI Reporter  |  New Delhi 

SMEs, banks, foreign exchange, markets, forex, small and medium price industries,
(Photo: iStock)

The benchmark indices rallied over 1 per cent on Thursday on the expiry of November-series futures and options (F&O) contracts, led by a sharp gain in rupee and buying in financial counters.

That apart, positive cues buoyed by US Federal Reserve Chairman Jerome Powell's speech which suggested that the US rate hikes will be gradual, boosted the sentiment further.

The S&P BSE ended at 36,170, up 453 points (1.27 per cent), while the broader Nifty50 index settled at 10,859, up 130 points (1.21 per cent). The index recorded its sharpest gain (7.4 per cent) in a series since March 2016  

In the currency market, the breached 70-mark against the US dollar for the first time since August 27, rising to 69.81 per dollar in intra-day trade against Wednesday's close of 70.61.

In key stocks, YES Bank settled flat at Rs 161.05, just 0.65 per cent lower on NSE. During the session, the stock continued to remain under pressure, hitting a fresh 32-month low of Rs 147 apiece. Shares of the private sector lender have tanked 19 per cent in the past three days after Moody’s downgraded the bank’s instruments and changed its outlook from stable to negative on Tuesday. Rating agency Icra, too, on Wednesday downgraded the bank’s rating.

Among key sectors, the Metal index rose 1.92 per cent led by a rise in Vedanta, Hindalco Industries. The Bank index, too, jumped 1.82 per cent led by HDFC Bank and IndusInd Bank.

In the broader market, the S&P BSE MidCap index rose 0.62 per cent to end at 14,955, while the S&P BSE SmallCap index ended 0.22 per cent higher at 14,353.
 
Markets

Asian stocks rose on Thursday, tracking gains on Wall Street, after the chairman of the US Federal Reserve suggested it may nearing an end to its three-year rate tightening cycle, boosting interest in riskier assets.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent. Australian stocks gained 0.6 per cent and Japan’s Nikkei climbed 0.4 per cent. But the Shanghai Composite Index bucked the trend and slipped 1 per cent.

Oil Prices

Oil prices clawed back some ground from losses in the previous session, but an increase in US crude inventories and uncertainty in the run to an OPEC meeting next week kept under pressure.

US crude futures were up 0.3 per cent at $50.41 per barrel after sliding 2.5 per cent the previous day. Brent crude inched down 0.1 per cent to $59.69 per barrel. It has slumped 21 percent this month, during which it fell to a 13-month trough of $58.41.

(with Reuters input)

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

Top sectoral gainers and losers on NSE

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

S&P BSE Sensex: Top gainers and losers

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

Market at close   The S&P BSE Sensex climbed 453 points or 1.27 per cent to end at 36,170 while NSE's Nifty50 index reclaimed the crucial 10,850 level to settle at 10,859, up 130 points or 1.21 per cent.

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

Blockchain platform goes live for North Sea crude oil trading Oil majors and trading firms can start finalising crude oil deals on a live blockchain-based platform for the first time, in a move that could revolutionise the market.   Commodities trading firms have piloted similar schemes in recent years as blockchain technology has the potential to drastically cut costs in an environment of razor-thin profit margins. READ MORE

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

Gold remains subdued on muted demand; silver recovers Gold remained weak for the second straight day as the price fell by Rs 20 to Rs 31,540 per 10 gram at the bullion market Thursday on tepid demand from local jewellers amid appreciating rupee, ignoring a firm trend overseas.   On the other hand, silver recovered by Rs 60 to Rs 37,160 per kg on scattered enquiries from industrial units amid better global cues. READ MORE

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

Anand Rathi on Century Plyboards Held back primarily by poor margins in MDF (more pricing pressure because of increased industry capacity) and in laminates (higher input costs), Century’s Q2 was weak, with PAT down 6% y/y. Besides, the depreciating rupee played a role (at the PBT level, forex loss of Rs 108m). Plywood, on the other hand, did better. For these reasons, we cut our FY19e and FY20e earnings respectively 9.3% and 6.7%. Expecting a gradual recovery in margins (on a price hike in laminates and normalisation of pricing pressure in MDF), we now expect 15% and 26% CAGRs over FY18-20 in respectively revenue and PAT. We maintain a Buy with a lower target price of `225 (20x FY20e P/E).

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

ICICI Securities on HEG Going forward, we expect the share of the electric arc furnace (EAF) route in overall steelmaking to increase further thereby supporting global graphite electrode demand. We continue to value the company at 10x FY20E EPS of | 575 thereby arriving at a target price of | 5750. We maintain our BUY rating on the stock. In addition to healthy demand prospects, the capacity expansion announced by HEG will provide healthy revenue visibility over a medium-term. Hence, this reiterates our positive view on the stock.

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

ICICI Securities on Somany Ceramics Going ahead, with a steady improvement in demand and revival of EBITDA margin with a sharp fall in crude oil & higher share of value added product along with recent price hike of 2-3% across portfolio, we believe its financial performance is set to improve, going ahead. Also, the stock is currently trading at 13.7x FY20E EPS, which is at ~45% discount to Kajaria’s valuations. With the anticipated improvement in financial performance, we believe this discount should narrow down. Hence, we upgrade the stock to BUY recommendation, with a target price of | 375/share (18x FY20E EPS).

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

Kotak Securities on Time Technoplast Limited (TTL) TTL is trading at P/E of 12.8x and 10.1x FY19E and FY20E earnings respectively, which is attractive as it is at a discount to midcap index valuation. In recent months, the TTL stock has been derated in line with general sell-off in the midcaps and smallcaps universe. At the current price, valuations are attractive. Hence, we continue to maintain our positive stance on the company. We value the stock at 13x FY20 earnings and arrive at a price target of Rs 145 (Rs 195 ealier, based on 15x FY20E).

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

Adani Enterprises to self-finance Carmichael mine project; stock rises 8%   Shares of Adani Enterprises have moved higher by 8% to Rs 170 on BSE on back of heavy volumes after the company said it will fund the entire cost of its controversial Queensland coal mine and rail project in Australia. “Adani Mining's Carmichael mine and rail project will be 100% financed through the Adani Group's resources, Adani Mining CEO Lucas Dow announced in Central Queensland today,” Adani Enterprises said in a press release. Read more

F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar16 expiry

Sector watch: Nomura on automobiles Our industry interactions indicate that festive retails have been flattish across PVs/2Ws which has led to higher inventory levels. We believe this should lead to slower wholesales in the month. For Nov-18, we expect passenger vehicle (PV) industry volumes to decline 1% y-y. We expect Maruti Suzuki to be broadly in line. MSIL had seen 6% growth in festive season retails after being flat in the first half of the season. We are factoring in 5% yoy PV industry growth in FY19F, implying ~5% y-y growth in the remaining 4MFY19F. Maruti Suzuki remains our long-term top pick in the sector, given a strong model cycle and high FCF generation. We also like M&M and Hero Motocorp given high FCF free cash-flow yields.

First Published: Thu, November 29 2018. 08:05 IST
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F&O expiry: Sensex up 453 pts, Nifty Nov gain sharpest since Mar'16 expiry

The Nifty Metal index rose 1.92 per cent led by a rise in Vedanta, Hindalco Industries. The Nifty Bank index, too, jumped 1.82 per cent led by HDFC Bank and IndusInd Bank

The benchmark indices rallied over 1 per cent on Thursday on the expiry of November-series futures and options (F&O) contracts, led by a sharp gain in rupee and buying in financial counters.

That apart, positive cues buoyed by US Federal Reserve Chairman Jerome Powell's speech which suggested that the US rate hikes will be gradual, boosted the sentiment further.

The S&P BSE ended at 36,170, up 453 points (1.27 per cent), while the broader Nifty50 index settled at 10,859, up 130 points (1.21 per cent). The index recorded its sharpest gain (7.4 per cent) in a series since March 2016  

In the currency market, the breached 70-mark against the US dollar for the first time since August 27, rising to 69.81 per dollar in intra-day trade against Wednesday's close of 70.61.

In key stocks, YES Bank settled flat at Rs 161.05, just 0.65 per cent lower on NSE. During the session, the stock continued to remain under pressure, hitting a fresh 32-month low of Rs 147 apiece. Shares of the private sector lender have tanked 19 per cent in the past three days after Moody’s downgraded the bank’s instruments and changed its outlook from stable to negative on Tuesday. Rating agency Icra, too, on Wednesday downgraded the bank’s rating.

Among key sectors, the Metal index rose 1.92 per cent led by a rise in Vedanta, Hindalco Industries. The Bank index, too, jumped 1.82 per cent led by HDFC Bank and IndusInd Bank.

In the broader market, the S&P BSE MidCap index rose 0.62 per cent to end at 14,955, while the S&P BSE SmallCap index ended 0.22 per cent higher at 14,353.
 
Markets

Asian stocks rose on Thursday, tracking gains on Wall Street, after the chairman of the US Federal Reserve suggested it may nearing an end to its three-year rate tightening cycle, boosting interest in riskier assets.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent. Australian stocks gained 0.6 per cent and Japan’s Nikkei climbed 0.4 per cent. But the Shanghai Composite Index bucked the trend and slipped 1 per cent.

Oil Prices

Oil prices clawed back some ground from losses in the previous session, but an increase in US crude inventories and uncertainty in the run to an OPEC meeting next week kept under pressure.

US crude futures were up 0.3 per cent at $50.41 per barrel after sliding 2.5 per cent the previous day. Brent crude inched down 0.1 per cent to $59.69 per barrel. It has slumped 21 percent this month, during which it fell to a 13-month trough of $58.41.

(with Reuters input)

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