Sensex surges 377 pts as financial, FMCG stocks rally; Nifty ends at 11,889

(Photo credit: Kamlesh Pednekar)
The domestic equity market ended around 1 per cent higher on Tuesday, led by gains in financial and FMCG stocks. Further, hopes of higher inflows after MSCI said it will implement the new regime on foreign ownership limits in the MSCI Global Indexes containing Indian securities in the November 2020 Semi Annual Index Review, also boosted investor sentiment.

Among headline indices, the S&P BSE Sensex rallied 377 points, or 0.94 per cent to settle at 40,522 levels while the Nifty50 index ended at 11,889, up 122 points, or 1 per cent. India VIX declined nearly 3 per cent to 22.19 levels.

Among sectoral indices, Nifty Private Bank index gained the most - up over 3 per cent to 13,756 points while Nifty Bank added nearly 3 per cent to 24,769.50. Nifty IT, on the other hand, slipped over 1 per cent to 21,023 levels. 

In the broader market, the S&P BSE MidCap index gained 1.65 per cent to 14,954 levels while the S&P BSE SmallCap index rallied 0.6 per cent to 15,090 levels. 

Global markets

European equities fell in early Tuesday trading as risk-aversion swept markets, with a resurgence of coronavirus cases threatening the global economic recovery and caution ahead of US elections on November 3.

The MSCI world equity index, which tracks shares in 49 countries, was down 0.1 per cent at the time of writing of this report, having erased some losses overnight after dropping to a 19-day low in the previous session.

In commodities, oil prices rose towards $41 a barrel as oil companies shut down some US Gulf of Mexico oil output due to a hurricane, although surging coronavirus infections and rising Libyan supply limited gains.

(With inputs from Reuters)

4:02 PM IST "Forecast of higher FII inflows to India, based on MSCI report, by raising investment limits helped the market to strongly outperform despite a weak global market. The sustenance of such a trend is low given increasing concerns over the worsening spread of virus in the western world which has weakened their markets for further correction. Indian market is expected to follow with an increase in volatility in the coming days as we are heading closer to the US election and more economic restrictions due to the devastating rise of Covid cases."

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex ended at 40,522, up 377 points, or 0.94 per cent while NSE's Nifty ended at 11,889, up 122 points, or 1 per cent.

3:29 PM IST

3:27 PM IST RATING: ADD | TARGET PRICE: Rs 190 We have revised our FY21e earnings to Rs11.0/sh (Rs10.1) and maintained our FY22e earnings at Rs13.2/sh. factoring in HEIM’s focus on retail segment (85% trade sales in Central India), focus on guarding margins and cost control. This will aide EBITDA margins to stay ~24%. We arrive at a fair value of Rs190/sh (earlier Rs 183) assigning 7.0x EV/EBITDA FY22e earnings. At our target price, HEIM trades at a replacement cost of Rs 6.3bn/mn tonnes FY22e capacities. Maintain ADD rating.

3:22 PM IST

3:13 PM IST Colgate-Palmolive India, ACC, Zee Entertainment Enterprises and Adani Green Energy were up in the range of 5 per cent to 6 per cent, while, ABB, Tata Consumer Products, ICICI Securities, Ashok Leyland, Indraprastha Gas, Ramco Cements and Apollo Hospital Enterprises were up between 3 per cent to 4 per cent on the BSE. READ MORE

3:05 PM IST

3:00 PM IST COMPANY LATEST(rs) CHG(%) FIRSTSOUR.SOLU. 75.75 1.07 WIPRO 332.75 -2.05 INFOSYS 1086.90 -2.27 HCL TECHNOLOGIES 842.15 -0.71 MINDTREE 1369.25 -1.43 » More

2:52 PM IST

2:45 PM IST

LIVE UPDATES

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

"Forecast of higher FII inflows to India, based on MSCI report, by raising investment limits helped the market to strongly outperform despite a weak global market. The sustenance of such a trend is low given increasing concerns over the worsening spread of virus in the western world which has weakened their markets for further correction. Indian market is expected to follow with an increase in volatility in the coming days as we are heading closer to the US election and more economic restrictions due to the devastating rise of Covid cases."

SECTOR WATCH | Nifty IT index slips over 1%


MARKET AT CLOSE | Gainers and losers on the BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended at 40,522, up 377 points, or 0.94 per cent while NSE's Nifty ended at 11,889, up 122 points, or 1 per cent.

MARKET CHECK


BROKERAGE VIEW | Centrum Broking on Heidelberg Cement

RATING: ADD | TARGET PRICE: Rs 190

We have revised our FY21e earnings to Rs11.0/sh (Rs10.1) and maintained our FY22e earnings at Rs13.2/sh. factoring in HEIM’s focus on retail segment (85% trade sales in Central India), focus on guarding margins and cost control. This will aide EBITDA margins to stay ~24%. We arrive at a fair value of Rs190/sh (earlier Rs 183) assigning 7.0x EV/EBITDA FY22e earnings. At our target price, HEIM trades at a replacement cost of Rs 6.3bn/mn tonnes FY22e capacities. Maintain ADD rating.

Top gainers on the BSE at this hour


Midcap index outperforms; Shriram Transport, MRF, Muthoot Finance gain 6%

Colgate-Palmolive India, ACC, Zee Entertainment Enterprises and Adani Green Energy were up in the range of 5 per cent to 6 per cent, while, ABB, Tata Consumer Products, ICICI Securities, Ashok Leyland, Indraprastha Gas, Ramco Cements and Apollo Hospital Enterprises were up between 3 per cent to 4 per cent on the BSE. READ MORE

UPDATE :: Sensex at day's high


SECTOR WATCH:: Tech stocks under pressure in an otherwise firm market

COMPANY LATEST(rs) CHG(%)
FIRSTSOUR.SOLU. 75.75 1.07
WIPRO 332.75 -2.05
INFOSYS 1086.90 -2.27
HCL TECHNOLOGIES 842.15 -0.71
MINDTREE 1369.25 -1.43
» More

MARKET UPDATE:: Sensex trading near day's high


Heatmap: S&P BSE Sensex gainers and losers at this hour


Result Tomorrow :: L&T Q2 PAT may fall up to 64.1% YoY; dividend announcement eyed

According to analysts, after the easing of lockdown norms, many companies are nearing pre-Covid levels of operations, though, for construction-oriented businesses, labor availability remains a challenge. Execution remains weaker due to social distancing norms impacting productivity in manufacturing and construction activities, besides weak demand and logistical challenges due to erratic local lockdowns. READ MORE

Coforge shares trade firm after promoter sells 6.3% stake

Shares of Coforge moved higher by 2 per cent to Rs 2,267, bouncing back 4 per cent from the intra-day low on the National Stock Exchange (NSE) on Tuesday after promoters of the company sold 6.3 per cent equity stake at Rs 2,310 per share on Monday via open market. READ MORE 


Just Dial: Is this the number you missed to dial in your portfolio?

The stock of local search service provider Just Dial surged 6 per cent to Rs 679.5 per share on the BSE in the intra-day deals on Tuesday. The stock was trading at its fresh 52-week high level, surpassing the previous high of Rs 660.65 per share hit on October 24, 2019. So far in October, the stock has leaped nearly 69 per cent on the BSE till Monday, as against 5.4 per cent rise in the benchmark S&P BSE Sensex. That apart, the stock price has more-than-doubled in the current financial year, soaring 118.5 per cent since March 31, 2020 till Monday. READ MORE 

 

Rupee Closing

Rupee ends 14 paise higher at 73.71 per US dollar vs Monday's close of 73.85/$

Cement shares in demand; ACC hits fresh 52-week high, Shree Cement up 6%

Shares of cement manufacturers were in demand with most of the sector stocks trading higher in the range of 2 per cent to 6 per cent on the expectation of improved demand. Analysts expect the cement industry to witness positive growth in the second half (October-March) of the current fiscal (H2FY21) led by strong demand from the sustainable rural trade segment. READ MORE 


Sept Quarter Result | Ceat profit comes in at Rs 182 crore

>> Revenue at Rs 1,978.5 crore

>> EBITDA at Rs 292.5 crore; margin at 19.5%


Top losers on the BSE at this hour


INDEX GAINER | Nestle up over 5%


Nifty Bank Alert


HDFC Securities on Torrent Pharma

RATING: ADD | TARGET PRICE: Rs 2,675

Torrent’s Q2 performance reflects resilience in India business (+7% YoY) EBITDA margin was strong at 31.5% (+450bps YoY, down 67bps QoQ) driven by cost savings. Barring US, most businesses witnessed improved traction. The company repaid debt of Rs4.4bn in 1H and is on track to reduce it by Rs10bn in FY21. We like Torrent’s India franchise and its superior return profile. Higher contribution from India justifies the premium multiple over peers. We tweak our estimates by 6%/-3%/1% in FY21/22/23 and revise our TP to Rs 2,675 (from Rs 2745) based on 16x EV/EBIDTA. Maintain ADD.

Top gainers on the BSE at this hour


How Covid-19 disruptions and food inflation have worsened RBI's trilemma

Also known as the “Trilemma,” it’s the bane of emerging markets from Argentina to Turkey. Cut interest rates too far and risk scaring off foreign capital, sending the currency tumbling. Raise borrowing costs too much to fight inflation and funds rush in, sending the currency higher and strangling exports. READ MORE

Regaining investors confidence remains an uphill task for YES Bank

YES Bank published its July-September quarter (second quarter, or Q2) results last Friday. In anticipation of an improved performance, its stock was locked in the upper circuit, with gains of 5 per cent. READ MORE

Jan to Sep VC investments down nearly 17 per cent YoY to $6.5 billion

Venture Capital investments dropped by around 17 per cent during January to September 2020 to $6.5 billion from $7.9 billion, last year. The funding was led by education, real estate and fintech. Investors say investment activity will increase in the coming months as Covid-19 has opened several new and first time opportunities for startups with fast changing consumer habits. Fintech, edtech and consumer driven startups are likely to raise more funds and grow faster. READ MORE

Select stocks rally as MSCI to tweak foreign ownership limit in Indian stks

Shares of select companies rallied up to 8 per cent on the BSE on Tuesday after MSCI said it will implement the new regime on the foreign ownership limits (FOL) in the MSCI Global Indexes containing Indian securities coinciding with the November 2020 Semi-Annual Index Review. Shriram Transport Finance Company, Asian Paints, Nestle India, Larsen & Toubro, Bajaj Finance, Colgate-Palmolive India, Shree Cement, Ipca Laboratories, NTPC and Pidilite Industries were up in the range of 3 per cent to 8 per cent on expectation of inclusion into the MSCI indices. READ MORE

Bajaj Auto, TVS: How to trade two-wheeler stocks this festive season

Two-wheeler stocks such as TVS Motor, Hero MotoCorp, and Bajaj Auto were among the top gainers on the Nifty Auto index, surging up to 1.6 per cent in the intra-day deals on the National Stock Exchange (NSE), on Tuesday. The move comes despite two-wheeler companies reporting sombre sales during the nine-day auspicious Navratri period -- the first leg of the festive season. READ MORE

MARKET CHECK


Foreign ownership limits: MSCI India to see passive inflow of $2.5 billion

Morgan Stanley Capital Investment (MSCI) has said it will implement the new regime on foreign ownership limits (FOL) in the MSCI Global Indexes containing Indian securities coinciding with the November 2020 Semi-Annual Index Review. Based on an analysis by Ridham Desai, head of India research and India equity strategist at Morgan Stanley and Sheela Rathi, their equity research analyst, the MSCI India index could see passive inflow to the tune of $2.5 billion due to this development. READ MORE

Nestle India gains 7% in two days post September quarter results

Shares of Nestle India gained 5 per cent to Rs 17,023 on the BSE on Tuesday. The stock has risen 7 per cent in the past two trading days after the company reported stronger-than-expected recovery with double-digit sales growth for the quarter ended September 2020 (Q3CY20). The board has declared an interim dividend for 2020 of Rs 135 per equity share amounting to Rs 1,302 crore, which will be paid on and from November 20, 2020. READ MORE

Top gainers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
KOTAK MAH. BANK 1551.70 9.60
TRENT 679.80 6.95
JUST DIAL 676.60 5.60
IPCA LABS. 2237.30 5.13
SHRIRAM TRANS. 725.10 5.06
» More on Top Gainers

Sebi plan to introduce capital adequacy norms rattles stockbrokers

The Securities and Exchange Board of India's (Sebi) plan to introduce capital adequacy norms is causing further heartburn to brokers. Stockbrokers are already grappling with new guidelines around margin pledging, increase in upfront margin for intra-day trading, and strict penalties for violation of these norms. Sebi Chairman Ajay Tyagi, while addressing a conference recently, stressed the need for bringing new capital adequacy norms. “There are all types of brokers in the system. READ MORE

Result Today :: Tata Motors may report up to Rs 3,212 crore loss in Q2 amid JLR's struggles

According to the company's monthly sales data, Tata Motors sold 1.1 lakh units in Q2FY21, up 5 per cent as compared to 1.05 lakh units sold in the corresponding quarter last year. Sequentially, volumes grew 341 per cent for Tata Motors from 25,047 reported in Q1FY21. READ MORE

Ipca Labs rallies 9%, hits all-time high on hopes of healthy Q2 results

For the April-June quarter (Q1FY21), Ipca had reported over three-fold jump in its consolidated net profit st Rs 446 due to robust sales. The company had posted a net profit of Rs 129 crore for the corresponding period of the previous fiscal. Consolidated total income rose 41 per cent year on year (YoY) at Rs 1,546 crore. The company benefitted from good sales pick-up in hydroxychloroquine sulphate used in the treatment of Covid-19 in both domestic and export markets during Q1FY21. READ MORE

PSB Q2 preview: NPA recognition ruling to prevent higher slippages

Analysts at Motilal Oswal Financial Services, for instance, expect most PSBs to see muted profit growth for banks under their coverage impacted by sluggish loan growth, higher proportion of MSME/SME loans, and delay in resolution of stressed accounts. Consequently, the brokerage sees the net profit declining 16 per cent year-on-year (YoY) for the sector. State Bank of India (SBI), however, remains an exception, they say. READ MORE

IndiGo, SpiceJet: Lower costs, higher capacity utilisation to boost Q2 nos

Listed aviation players, InterGlobe Aviation (IndiGo) and SpiceJet, are expected to narrow their losses sequentially in the September quarter of FY21 (Q2FY21), as India gradually opened up its skies and unlocked the economy. Besides, mild appreciation of rupee during the quarter would aid non-fuel costs, say analysts. According to industry reports, the early part of Q2 witnessed localised lockdowns, slot restrictions at major airports, and low consumer confidence due to rising incidence of Covid-19 cases. READ MORE

Q&A | Relevance of earnings releases has reduced over a period of time: Unmesh Sharma

Across sectors, companies are now releasing updates with operational details in the first week following the end of the quarter. In addition, the current quarter is really a lot more about outlook commentary (leading indicators) rather than results (backward looking). READ MORE 


Angel Broking surges 17% on highest-ever quarterly profit in Q2

Shares of Angel Broking rallied 17 per cent to Rs 290 on the BSE on Tuesday after the company reported highest-ever quarterly profit after tax at Rs 74.6 crore in the September quarter (Q2FY21). It had posted profit of Rs 48.3 crore in June quarter (Q1FY21). The broking firm announced its maiden quarterly results after listing its shares earlier this month. Angel Broking had made a weak debut at the bourses on October 5, 2020. It listed at Rs 275, a 10 per cent discount against the issue price of Rs 306 per share on the BSE. The stock hit a high of Rs 296 on the listing day. READ MORE

NEWS ALERT :: RBI notifies banks to follow provisions of Centre's interest scheme


Result Today :: Stable qtr in the offing for Bharti Airtel; losses to contract, ARPU rise

For the entire sector as well, ICICI Securities expects a stable quarter for telecom companies. The brokerage sees both subscriber and average revenue per user (ARPUs) remaining firm given return of migrants to cities, continued higher data usage and thereby pack upgrades and improved availability of recharges both digitally/physically as cities/towns have largely restarted post lockdowns. READ MORE

Rupee Opening

Rupee opens lower at 73.93 per US dollar vs Monday's close of 73.85/$

Finolex Industries surges 9% on healthy September quarter numbers

Shares of Finolex Industries surged 9 per cent to Rs 579 on the BSE in the early morning deals on Tuesday after the company reported a 17 per cent year-on-year (YoY) growth in net profit at Rs 120 crore, on the back of healthy operational performance in September quarter (Q2FY21). The plastic products manufacturer had a profit of Rs 103 crore in the year-ago quarter. On a sequential basis, net profit more-than-doubled from Rs 57 crore in the June quarter (Q1FY21). READ MORE

Nifty PSU Bank index dips 1%


MARKET CHECK


NTPC gains 2% on buyback plan

>> State-owned power giant NTPC on Monday said its board will on November 2 consider a proposal to buy back the company's equity shares. Last week, markets regulator Sebi granted exemption to NTPC from certain buyback norms for the proposed merger of its wholly-owned subsidiaries with the parent company.


IDBI Bank down 2.5%

>> Private sector lender IDBI Bank posted a net profit of Rs 324.4 crore in the second quarter ended September 30, 2020 (Q2FY21) as against net loss of Rs 3,458.84 crore in Q2FY20.


IDBI Bank down 2.5%

>> Private sector lender IDBI Bank posted a net profit of Rs 324.4 crore in the second quarter ended September 30, 2020 (Q2FY21) as against net loss of Rs 3,458.84 crore in Q2FY20.


M&M Financial Services slips over 2%

>> Mahindra & Mahindra Financial Services’ net profit rose by 21 per cent to Rs 304 crore in the second quarter ended September (Q2Fy21), from Rs 252 crore in the same quarter a year ago.


Angel Broking zooms 11% post Q2 earnings


Result Reaction | Torrent Pharma trades in the red

>> Despite a dip in its US and Brazil revenues, Torrent Pharmaceuticals Ltd. has posted a 27 per cent growth in its consolidated profit after tax (PAT) for the second quarter ended September 30, 2020 for the current financial year 2020-21.

Sectoral trends at Open


Opening Bell


Sensex Heatmap at Open


Opening Bell


Commodity Heatmap


Top gainers and losers on the S&P BSE Sensex at Pre-open


Markets at Pre-open


Markets at Pre-open


Stocks in focus today

Torrent Pharma: Despite a dip in its US and Brazil revenues, Torrent Pharmaceuticals Ltd. has posted a 27 per cent growth in its consolidated profit after tax (PAT) for the second quarter ended September 30, 2020 for the current financial year 2020-21.
 
Mahindra & Mahindra Financial Services’ net profit rose by 21 per cent to Rs 304 crore in the second quarter ended September (Q2Fy21), from Rs 252 crore in the same quarter a year ago.
 
IDBI Bank: Private sector lender IDBI Bank posted a net profit of Rs 324.4 crore in the second quarter ended September 30, 2020 (Q2FY21) as against net loss of Rs 3,458.84 crore in Q2FY20. READ MORE

Bulk deals on BSE as on Monday

Bulk deals on NSE as on Monday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil selloff pauses, but outlook shaky on surging coronavirus cases, supply woes

-- Oil prices regained a semblance of stability on Tuesday after suffering sharp losses over the previous session and last week, as a resurgence of coronavirus cases globally hit prospects for crude demand while increasing supply also hurt sentiment.

-- In early Asia, Brent crude was up 12 cents, or 0.3 per cent, at $40.58 a barrel, having dropped more than 3 per cent overnight. US oil was up 13 cents, or 03 per cent, at $38.69 a barrel, after also declining more than 3 per cent on Monday.

(Source: Reuters)

SGX Nifty update

-- At 8:32 am, the SGX Nifty was trading at 11,830 level, up 60-odd point

Asian markets check

(Source: Reuters)


Wall Street closes lower on soaring virus cases, US stimulus worries

(Source: Reuters)


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