Financials lift indices; Sensex ends 504 pts up ahead of US poll outcome

Nifty Bank jumped over 3 per cent or 790 points to 25,683 levels.
The Indian stock market ended over one per cent higher on Tuesday, on the back of favourable global cues, ahead of the US presidential poll outcome. Analysts say while predicting the election outcome is harder-than-ever, a victory for Democratic candidate Joe Biden will be good for emerging markets (EM), including India. READ MORE

Among the headline indices, the S&P BSE Sensex rallied 504 points, or 1.2 per cent, to 40,261 levels and the Nifty50 index reclaimed the 11,800-mark to end at 11,813.50, up 144 points, or 1.24 per cent. India VIX dropped nearly 4 per cent to 24.2 levels. 

Sectorally, barring Nifty Realty and Nifty Media, all other indices ended in the green. Nifty Bank jumped over 3 per cent or 790 points to 25,683 levels while Nifty Metal rose over 2 per cent to 2,391 levels. 

In the broader market, the S&P BSE MidCap index gained 0.42 per cent to settle at 15,021 levels while the S&P BSE SmallCap index ended at 14,834, up 52 points, or 0.35 per cent. 

Global markets

European stock markets rose in early trading on Tuesday as investors bet on a clear win for Joe Biden as the United States votes in its most polarised presidential election in living memory.

In Asia, South Korea’s main index advanced 1.7 per cent and Hong Kong’s index sprinted 2.2 per cent higher.

The MSCI China index hit a 23-year high after Chinese factory activity expanded the fastest in a decade. Japanese markets were closed for a holiday.

In commodities, oil prices extended their rally but concerns over surging coronavirus cases around the world capped further gains.

(With inputs from Reuters)


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

The market maintained its momentum supported by increased demand for banking stocks due to improvement in the business outlook. Globally too, the market was on a strong footing as the US manufacturing data surpassed expectations and a similar rebound was seen across Europe and China. Markets are also sustaining their confidence ahead of the upcoming Fed meeting, as it is not expecting an increase in rates and easing measures to recover the economy.

SECTOR WATCH | Nifty Bank jumps 790 pts

MARKET AT CLOSE | Gainers and losers on the S&P BSE Sensex


The S&P BSE Sensex gained 504 points, or 1.27 per cent to settle at 40,261 levels while the NSE's Nifty50 index ended at 11,813.50, up 144 points, or 1.24 per cent. 

Godrej Properties Q2 net drops 80% to Rs 7.1 crore on Covid-19 impact

Godrej Properties said its total booking value in Q2FY21 stood at Rs 1,074 crore on a booking volume of 1.73 million sq ft. It sold 1,373 residential units in Q2FY21. In comparison, its booking value was Rs 1,446 crore on a volume of 2.26 million sq ft in Q2FY20. READ MORE 

PNB eyes Rs 7,000 crore from QIP in Dec, credit growth to be less than 5%

The country's second largest state-owned lender expects the credit growth to pick up slightly in the second half but it would be less than 5 per cent for the entire fiscal. The bank has already taken approval from the board for raising Rs 14,000 crore by way of Tier II, Additional Tier 1 (AT-1) bonds and QIP (Qualified Institutional Placement), PNB Managing Director S S Mallikarjuna Rao said in a virtual interaction with the media. READ MORE 

BROKERAGE VIEW | Axis Securities on Maruti Suzuki India


The PV industry is exhibiting a strong sequential recovery on the back of pent-up demand, preference for personal mobility and the channel filling for the festive season. We expect MSIL to gain market share in FY21E given its (1) higher presence in rural areas (rural demand remains resilient), (2) a wide distribution network, (3) preference for lower-end hatchback cars (MSIL is the leader) given the weak economic environment and (4) expected shift towards petrol vehicles.

We expect company's volumes to decline by 13% YoY in FY21E followed by strong growth of 25% and 12% in FY22E/23E respectively. We maintain our BUY rating and TP of Rs.7,920 and continue to value the stock at 25x its FY23E EPS.

Hero MotoCorp extends gain after recording all-time high volumes in October

Shares of Hero MotoCorp (HMCL) rose 4 per cent to Rs 2,937 on the BSE on Tuesday, extending its previous day’s 1 per cent gain after the company’s volumes rose 34.6 per cent year-on-year (YoY) to an all-time high in the month of October. The world’s largest two-wheeler manufacturer sold 806,848 units of motorcycles and scooters in October 2020 – its highest-ever sales in any single month. The company had sold 599,248 units in the corresponding month of the previous year (October 2019). READ MORE


Bankrupt, grounded Jet Airways is world's best performing airline stock

All airlines are feeling the coronavirus pinch but one that hasn’t flown since April 2019 after collapsing under a pile of debt is the world’s best performing -- at least from a share price point of view. Stock in Mumbai-listed Jet Airways India Ltd. has surged almost 150% this year versus a 42% plunge in the 27-member Bloomberg World Airlines Index, which comprises the globe’s biggest carriers. READ MORE

Sensex trades over 500 pts higher

SBI to report Q2 result on Wednesday; here's what leading brokerages expect

India’s largest government-owned bank, State Bank of India (SBI), is set to declare its September quarter result (Q2FY21) on Wednesday, November 4, under the chairmanship of Dinesh Khara. Analysts, however, remain divided on the bottom-line figures. Net profit, for instance, may come in anywhere between Rs 2,172.2 crore and Rs 4,676.5 crore, say analysts. READ MORE

Sept Quarter Result | Dabur logs net profit of Rs 461 crore

>> Consolidated revenue at Rs 2,516 crore

>> Cons EBITDA at Rs 569.4 crore; margin 22.6%

Rupee Closing

Rupee ends at 74.40 per US dollar vs Monday's close of 74.43/$

NTPC slips nearly 3%

Sun Pharma trades flat ahead of Q2 nos

Zydus Cadila files investigational new drug application for coronavirus

Drug firm Zydus Cadila on Tuesday said it has filed the investigational new drug (IND) application for ZYIL1, positioned for management of critically ill COVID-19 patients. "Following up on its initiatives to fight COVID-19 with diagnostics, vaccines and therapeutics, the company is now focussing on cutting edge research to bring targeted therapies... it has filed the IND application of ZYIL1, a novel oral small molecule," the company said in a regulatory filing. READ MORE

Franklin Templeton Mutual Fund's six shut schemes generate Rs 438 crore

Franklin Templeton Mutual Fund has said its six shut schemes have received Rs 438 crore from maturities, pre-payments and coupon payments in the second half of October. This amount takes the total cash flows received to Rs 8,741 crore since closing down of the schemes in April, the fund house said in a statement. Franklin Templeton MF had closed six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. READ MORE

BROKERAGE VIEW | JM Financial on Jindal Steel & Power

The company is fully focused on reducing consol. debt to below Rs 150bn before embarking on any capex plans (Net debt EBITDA to be at 2.1x FY23E). We roll forward to FY23, arriving at our fair value of Rs 260/sh (vs Rs 220/sh earlier) and upgrade rating to BUY (from HOLD earlier). Pick up in construction activity in 2H leading to higher long product prices and resumption of old iron ore stock dispatch from Sarada mines remain near term triggers for the name.

Realty stocks trade under presure

L&T trades over 2% higher

Q2 RESULTS | Muthoot Fin reports profit of Rs 931 cr vs Rs 908.5 cr (YoY)

-- Revenue at Rs 2,821 cr vs Rs 2,397.4 cr (YoY)

Top losers on the BSE at this hour

BROKERAGE VIEW | HDFC Securities on Bandhan Bank


BANDHAN’s earnings were ahead of estimates on account of lower-than- expected provisions (a recurring theme across banks this quarter). The bank fared exceptionally in terms of collection efficiency and deposit traction. We have increased our earnings estimates as we build lower provisions (although they remain elevated, given the inherent risks associated with microfinance and higher growth. Maintain BUY with a target price of Rs 377.

Contribution to the S&P BSE Sensex's gain today

BROKERAGE VIEW | Geojit Financial Services on Hero MotoCorp


As expected, company benefited primarily from improved demand from the rural areas, while growth rates remained on the lower side in semi-urban and urban areas. Nonetheless, company’s YTD sales figures look encouraging and should improve further with the festive season. At current price levels, the valuation looks attractive. Hence, we upgrade our rating on the stock to BUY with a revised target price of Rs. 3,345 based on 19x FY22E adj. EPS.

Indian companies prefer commercial paper route to raise cash, shun banks

Indian companies are increasingly preferring the commercial paper (CP) route to raise working capital, while shunning banks. And this is only going to increase with the liquidity-supportive measures announced by the Reserve Bank of India (RBI), say experts. Issues of CPs — those that mature in less than a year —have increased since the nationwide lockdown was announced in March-end, but corporate bonds have not seen such a commensurate rise even as banks’ incremental lending continues to fall. READ MORE

Biden good for emerging markets; dollar to gain from Trump win: Analysts

Aside from which candidate ultimately wins, analysts believe what is even more important for the markets is whether the elections will see a clear ‘sweep’, where the winning party also takes both chambers of the Congress. In such a scenario, more decisive policies could be pursued, in contrast to a situation where both chambers block each other and stall economic progress. Also, this would allow for a meaningful stimulus package that could become a catalyst for a stronger market. READ MORE 

Coal India is bleeding but govt keeps pressuring to declare large dividends

Coal India Limited (CIL) is bleeding its cash reserves. As the first ever auctions for coal mines without any restrictions on sale of coal began on November 2, it is a sobering thought. The haemorrhaging also has implications for whether CIL will end up practically defunct like another public sector behemoth, BHEL, or whether it would manage to retain its dominance, like Life Insurance Corporation. READ MORE 

BROKERAGE VIEW | Emkay Global on Zee Entertainment


We are baking in growth in ad revenues from Q4FY21. We continue to highlight that any upside in this stock hinges on delivery on guidance, especially in terms of cash generation and governance. Maintain Hold rating with a TP of Rs 200 (11x Sep’22E EPS).

Q2 RESULTS | Varun Beverages' profit rises 77.5% YoY to Rs 161.5 crore

-- Revenue up 3.5% YoY to Rs 1,839.5 crore

-- Ebitda up 16.9% at Rs 381 crore

Havells India regains Rs 50,000 crore m-cap mark as stock hits record high

At 11:18 am; Havells India was trading 5 per cent higher at Rs 821.55 with its market capitalisation (market-cap) at Rs 51,430 crore on the BSE, exchange data shows. In comparison, the S&P BSE Sensex was up 1 per cent at 40,146 points. The stock was up for the third straight trading day, soaring 14 per cent after the company reported a strong 80 per cent year-on-year (YoY) growth in its standalone net profit at Rs 325 crore in September quarter (Q2FY21). Net revenue grew 10 per cent YoY at Rs 2,452 crore. READ MORE 

PNB Concall :: Restructured retail & MSME loans worth Rs 41 cr as of September

>> Have gotten requests to restructure more retail loans worth Rs 32 cr
>> The bank is expecting restructuring of loans worth around Rs 4,000-6,000 cr across MSMEs by December

>> Have recovered Rs 2,900 cr in H1FY21

>> Expect recovery of Rs 5,100 cr in H2FY21

>> Expect to raise money via QIP in second or third week of December


Sanofi India: Long-term investors advised to consider the stock on dips

Multinational pharmaceutical companies, such as Sanofi India, with a domestic focus and strong brand franchise have remained investors’ favourite. Though the lockdown-related disruption, which affected India's pharma market growth, had hurt Street sentiment, Sanofi’s stock was quick to recover. Still, long-term investors could consider it on dips. READ MORE

US Elections 2020: What's in store for Sensex, Nifty and key indices

The domestic equity market was trading over a per cent higher in the morning deals on Tuesday, ahead of the much-anticipated US presidential election due later in the day. The benchmark S&P BSE Sensex reclaimed the crucial 40,000 level to trade at 40,261 points while the NSE's Nifty was hovering around 11,400 levels. As per reports, Democratic rival Joe Biden is ahead in national opinion polls, but races are tight in battleground states that could tip the election to Donald Trump.  READ MORE

Most active stocks by volume

VODAFONE IDEA 8.59 -1.38
SUZLON ENERGY 3.36 -4.55
NTPC 86.65 -2.91
TATA MOTORS 135.30 1.84
ASHOK LEYLAND 84.50 3.30
» More on Most Active Volume

Ashok Leyland nears 52-week high post October sales, zooms 72% in 3 months

Shares of Ashok Leyland gained 4 per cent at Rs 85.35 on the BSE on Tuesday, gaining 8 per cent in the past two trading days after the company reported healthy growth in sales of trucks and low commercial vehicles (LCVs) in the month of October. The stock of commercial vehicle maker was trading close to its 52-week high of Rs 87.50 touched on January 24, 2020. In past three months, it rallied 72 per cent, as compared to 8.6 per cent gain in the S&P BSE Sensex. READ MORE

Buoyant mgmt outlook, rising share of retail loans bode well for ICICI Bank

Whether the confidence came from the bank’s better-than-expected collection trends or from an increasing pie of retail loans which strengthened to 66 per cent, up 400 basis points (bps) year-on-year or net non-performing assets (NPA) ratio cooling off to a 5-year best at 1 per cent, it has helped renew investors’ optimism on the stock, with gains of over six per cent on Monday’s trade. READ MORE

NEWS ALERT | Interest waiver case hearing adjourned to November 5

(as reported by CNBC TV-18)

BROKERAGE VIEW | ICICI Securities on Bandhan Bank


Prudent management, lower restructuring pipeline and improving collection efficiency bode well for a high margin/ RoA generating bank. Provision buffer at 2.8% of advances provides comfort. Focus on expanding in housing segment to reduce balance sheet risk while improving business parameters will aid earnings profile and return ratios to return to >3% RoA and >20% RoE. We maintain our target price to Rs 400/share, valuing the stock at 3x FY22E ABV (~13x FY22E EPS). We upgrade from HOLD to BUY as stock price moderated from highs and valuations look reasonable now.

Most active stocks by volume

VODAFONE IDEA 8.61 -1.15
SUZLON ENERGY 3.36 -4.55
NTPC 87.50 -1.96
TATA MOTORS 136.05 2.41
ASHOK LEYLAND 84.90 3.79
» More on Most Active Volume

BROKERAGE VIEW | IDBI Capital on Relaxo Footwears


We like Relaxo in mass products segment and its healthy product mix, pan India reach and strong brand recall will drive sustainable earnings growth in future. We factor the beat in Q2FY21 and revise our FY21E financials upwards, while marginally downgrade our FY22E estimates considering cautious outlook on raw material front by the management. We introduce FY23E financials in this report. Maintain ACCUMULATE with a revised TP of Rs735 (earlier Rs700) valuing the stock at 50x PER on FY23E.

HDFC gains 10% in two days on improved asset quality in September quarter

Shares of Housing Development Finance Corporation (HDFC) rose nearly 4 per cent \at Rs 2,116 on the BSE on Tuesday, thus gaining 10 per cent in past two days after the company reported higher than estimated September quarter (Q2FY21) numbers, led by improvement in asset quality and steady assets under management (AUM) growth. READ MORE

Tata Motors advances 3% as domestic sales increase 27% YoY in October

Shares of Tata Motors gained over 3 per cent to Rs 137.35 apiece on the BSE on Tuesday, a day after the auto major reported 27 per cent growth in its total domestic sales to 49,669 units in October. The company had sold 39,152 vehicles in October 2019. Passenger vehicle sales during the previous month surged 79 per cent to 23,617 cars as compared to 13,169 units in October 2019. READ MORE 

MARKET UPDATE:: Sensex off day's high, but still up 300 pts

Rupee opening

Rupee opens higher at 74.33/$ vs Monday's close of 74.43 against the US dollar

Cadila Healthcare rallies 9% on strong September quarter results

Shares of Cadila Healthcare rallied 9 per cent to Rs 445.60 on the BSE on Tuesday as the company reported strong results in the September quarter (Q2FY21), with net profit after adjusting for exceptional items jumping 73 per cent year-on-year (YoY) at Rs 562 crore, on the back of healthy revenue. The pharmaceutical company's stock was trading close its 52-week high level of Rs 447.95, touched on October 9, 2020. READ MORE

S&P BSE Bankex index jumps nearly 600 pts

Sensex picks momentum

Nifty Metal index up 2%

BUZZING :: TVS Electronics soars 6%

Reliance Industries off lows

Zee Entertainment rises over 3.5% post Sept qtr result

>> Zee Entertainment Enterprises Ltd on Monday reported a consolidated net profit of Rs93.41crore for the second quarter ended September. The company had posted a net profit of Rs 412.09crore in the year-ago period, it said in a filing to the BSE.

ICICI Bank extends gains into second straight day

Larsen & Toubro up 1%

>> Larsen & Toubro (L&T) has emerged as the lowest bidder for the C6 package of the National High-Speed Rail Corporation’s (NHSRCL) bullet train project, at Rs 7,289 crore. This is the second contract for the company in the mega project.

Result Reaction | Cadila Healthcare zooms 6%

>> On the back of an 18 per cent growth in its US sales and 11 per cent growth in its India business, Cadila Healthcare Ltd. (Zydus Cadila) registered a 341.60 per cent jump in its consolidated profit after tax (PAT) for the quarter ended September 30, 2020. The company grew its net profit for Q2 of FY21 to Rs 473.4 crore from Rs 107.2 crore in corresponding Q2 of previous fiscal year 2019-20.

Sterlite Technologies advances around 2.5%

>> Sterlite Technologies (STL) on Monday said it will acquire Optotec, an optical interconnect products company based in Italy. The deal involves acquisition of 100 per cent of Optotec's shareholding at an enterprise value of EUR 29 million, a statement by STL said.

The Ramco Cement gains over 3% on healthy Q2 nos

>> Ramco Cements has posted a 40 per cent jump in profit to Rs 235.77 crore during the quarter ended September 30, from Rs 168.15 crore during the same quarter last year. Revenue dropped to Rs 1,265.31 crore from Rs 1,325.88 crore.

Result Reaction | PNB down 1%

>> Punjab National Bank (PNB) on Monday reported a 22 per cent jump in net profit to Rs 620.81 crore for the second quarter ended September 30. Net non-performing assets (NPAs) declined to 4.75 per cent, compared with 7.65 per cent a year ago. However, provisions for bad loans rose to Rs 3,811.17 crore in the quarter, against Rs 3,253.32 crore in July-September 2019.

Nifty Bank index at 8-month high, at highest level since March 13

All key sectoral indices open in the green

Sensex Heatmap at Open

First Trade :: Nifty tops 11,750

First Trade :: Sensex jumps 300 pts at Open

Commodity Heatmap

Markets at Pre-open

Sensex gainers and losers in pre-open

Markets in pre-open

Stocks to watch today

PNB: Punjab National Bank (PNB) on Monday reported a 22 per cent jump in net profit to Rs 620.81 crore for the second quarter ended September 30. Net non-performing assets (NPAs) declined to 4.75 per cent, compared with 7.65 per cent a year ago.
NTPC on Monday received the board’s approval for a share buyback. The board of directors approved the buyback of up to 197.8 million equity shares for Rs 2,275.74 crore, as part of capital restructuring. The company also declared its second-qua­rter results on Monday. READ MORE

US Presidential elections: Wall Street looks for signal from the noise

From the beach towns of Pinellas, Florida, to the suburbs of Bucks County, Pennsylvania, Wall Street will be closely watching a few dozen counties on Tuesday night for hints on who will win the US presidential race. Investment firms, faced with the prospect of a chaotic election complicated by an unprecedented number of mail-in ballots, have hired political analysts and crunched voting data to try to identify crucial counties and Senate races that might tell them which way the vote is headed. READ MORE

Stock picks by Nilesh Jain of Anand Rathi

The stock has provided a fresh breakout from a pennant pattern on the daily chart and has also been trading in a rising channel. The momentum indicators and oscillators are in the buy mode on the weekly as well as daily scales which hint at a further positive momentum in the counter. The stock has also witnessed a build-up of a long position with the addition of approximately 18 per cent open interest. 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 falls as Covid-19 cases soar, Libya output jumps

>> Oil prices slipped on Tuesday as worries about soaring Covid-19 cases, rapidly rising Libyan supply and U.S election jitters outweighed growing hopes that major producers would hold back on planned production increases.

>> US West Texas Intermediate (WTI) crude futures slipped 6 cents, or 0.2%, to $36.75 a barrel, while Brent crude futures fell 15 cents, or 0.4%, to $38.82.

(Source: Reuters)

Gap-up start?

>> At 8:20 am, the index was at 11,769 levels, up 100 points or 0.86 per cent

Asian shares hold firm, shrug off US election jitters

Source: Reuters

Wall Street rises but market braced for choppy week on eve of US election

Source: Reuters

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