MARKET WRAP: Indices gain for 6th straight day, Sensex ends 246 pts higher

Extending their gaining streak into the sixth straight session, benchmark indices ended with over half a per cent gains on Friday even as global peers tumbled after China's GDP growth slipped to a 27-year low of 6 per cent.

Industry heavyweights Reliance Industries (RIL), HDFC Bank, TCS, and Larsen & Toubro (L&T) helped benchmark S&P BSE Sensex settle at 39,298 levels, up 246 points or 0.63 per cent. The 30-share index hit an intra-day and low of 39,361 and 38,964, respectively. 

YES Bank (up over 8 per cent) emerged as the top gainer on the index while Tata Motors (down 1 per cent) the biggest loser. 

In the broader market, both mid and small-caps outperformed the headline indices. The S&P BSE MidCap index added 253 points or 1.78 per cent to close at 14,420 while the S&P BSE SmallCap index ended at 13,127, up 213 points or 1.65 per cent. 

On the NSE, the broader Nifty50 index gained 75.50 points or 0.65 per cent to close at 11,662 levels.  

On a weekly basis, both Sensex and Nifty ended with 3 per cent gains. 

On the sectoral front, barring Nifty IT, all the other indices ended in the green. Relaty stocks advanced the most, followed by metal and PSU bank stocks. The Nifty Realty index climbed nearly 2 per cent to 262.80 levels. 

BUZZING STOCKS

Reliance Industries (RIL), the oil-to-telecom behemoth, on Friday hit another milestone as the market capitalisation (m-cap) of the company breached the coveted Rs 9 trillion-mark, the first by any Indian company. The stock hit a high of Rs 1,428 during the session. At the time of writing of this report, the m-cap of the company stood at Rs 9,00,507 crore. At close, the stock stood at Rs 

1,415 apiece on the BSE, up over 1 per cent. The m-cap of the company was 8,97,179.47 crore. READ MORE

Shares of Bharat Heavy Electricals (BHEL) surged 27 per cent to Rs 56.45 on the National Stock Exchange (NSE) in the intra-day deals on Friday amid reports the government may look to reduce stake in the company. The stock recorded its sharpest intra-day rally in more than a decade. The stock ended at Rs 54, up 22.22 per cent. READ MORE

GLOBAL MARKETS

Asian stocks stumbled on Friday, erasing earlier gains after China posted its weakest growth in nearly three decades, countering a global lift in sentiment on the UK and European Union striking a long-awaited Brexit deal. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent, erasing earlier small gains. Australian shares dropped 0.52 per cent and Chinese blue-chips were off 1.53 per cent. Japan's Nikkei ended 0.18 per cent higher.

In commodities, oil prices slid as China's slowest GDP growth in almost three decades stoked demand fears. 

3:43 PM IST Shares of Reliance Industries (RIL), Hindustan Unilever (HUL), Bajaj Finance and Nestle India from the Nifty 50 index hit their respective all-time high on the National Stock Exchange (NSE) in intra-day deal on Friday.   Avenue Supermarts, which runs the DMart chain of stores, Adani Green Energy, Berger Paints, Blue Star, Indraprastha Gas, Manappuram Finance, SBI Life Insurance, Siemens and Whirlpool of India among total 16 stocks from the Nifty 500 index that also reached their record high in intra-day trade today READ MORE

3:41 PM IST Indian equities outperformed major global markets during the week. The BSE-30 Index gained 3.1% in the past week. Equity markets witnessed a sharp rally on FII buying, progress in US-China trade talks and as well as a deal being reached between UK and EU on Brexit. Infosys and Power Grid were the top losers in the BSE-30 Index, while Tata Motors, Yes Bank and ONGC  were the top gainers. CPI inflation rose to 3.99% in September (August: 3.28%), and August IIP growth was at (-)1.1% (July: 4.6%). FPIs bought equities worth US$1.2 bn over the past five trading sessions while DIIs bought US$263 mn worth of equities -- Sanjeev Zarbade, vice-president for private client group research, Kotak Securities

3:40 PM IST

3:39 PM IST

3:39 PM IST The S&P BSE Sensex added 246 points or 0.63 per cent to end at 39,298 levels while Nifty ended at 11,662, up 76 points or 0.65 per cent.

3:38 PM IST

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3:21 PM IST

3:03 PM IST

2:59 PM IST With the first half of 2019-20 having presented a dismal picture of the Indian economy, speculation is rife on whether the remaining six months would be better or worse. Let us assess the prospects of each of the key sectors of the economy in the second half of 2019-20 — overall economic growth, foreign trade, industrial output and retail inflation. READ MORE

2:51 PM IST China's economy expanded at its slowest rate in nearly three decades in the third quarter, hit by cooling domestic demand and a protracted US trade war, official data showed Friday. The Chinese economy grew 6.0 percent in July-September, compared with 6.2 percent in the second quarter, according to the National Bureau of Statistics (NBS). READ MORE 

2:46 PM IST    

LIVE UPDATES

RIL, HUL, Bajaj Finance, Nestle hit record high

Shares of Reliance Industries (RIL), Hindustan Unilever (HUL), Bajaj Finance and Nestle India from the Nifty 50 index hit their respective all-time high on the National Stock Exchange (NSE) in intra-day deal on Friday.
 
Avenue Supermarts, which runs the DMart chain of stores, Adani Green Energy, Berger Paints, Blue Star, Indraprastha Gas, Manappuram Finance, SBI Life Insurance, Siemens and Whirlpool of India among total 16 stocks from the Nifty 500 index that also reached their record high in intra-day trade today READ MORE

Market roundup

Indian equities outperformed major global markets during the week. The BSE-30 Index gained 3.1% in the past week. Equity markets witnessed a sharp rally on FII buying, progress in US-China trade talks and as well as a deal being reached between UK and EU on Brexit. Infosys and Power Grid were the top losers in the BSE-30 Index, while Tata Motors, Yes Bank and ONGC  were the top gainers. CPI inflation rose to 3.99% in September (August: 3.28%), and August IIP growth was at (-)1.1% (July: 4.6%). FPIs bought equities worth US$1.2 bn over the past five trading sessions while DIIs bought US$263 mn worth of equities

-- Sanjeev Zarbade, vice-president for private client group research, Kotak Securities

Nifty snapshot


RIL contributes most to Sensex's gains; M-cap hits Rs 9 trillion


CLOSING BELL

The S&P BSE Sensex added 246 points or 0.63 per cent to end at 39,298 levels while Nifty ended at 11,662, up 76 points or 0.65 per cent.

YES Bank, Maruti top Sensex gainers


Index watch


Ashok Leyland gains over 5%


BUZZING STOCK | PNB Housing Finance up 15%


Hard path to growth: How the next 6 months look for India's economy

With the first half of 2019-20 having presented a dismal picture of the Indian economy, speculation is rife on whether the remaining six months would be better or worse. Let us assess the prospects of each of the key sectors of the economy in the second half of 2019-20 — overall economic growth, foreign trade, industrial output and retail inflation. READ MORE

China's GDP growth grinds to near 30-year low as tariffs hit production

China's economy expanded at its slowest rate in nearly three decades in the third quarter, hit by cooling domestic demand and a protracted US trade war, official data showed Friday. The Chinese economy grew 6.0 percent in July-September, compared with 6.2 percent in the second quarter, according to the National Bureau of Statistics (NBS). READ MORE 

NEWS ALERT | Aviation Secy likely to chair meet on Air India divestment at 04:30 pm

 
 

BROKERAGE RADAR | Edelweiss Securities on Sheela Foam

Though margin levers exist, adjusting for the muted outlook in the mattress business we revise down FY20E revenue/EBITDA 3/6 per cent. However, adjusting for the lower tax rate, we revise PAT up by 3 per cent. We value the standalone business at 40x September 2020E EPS and subsidiaries at 13x September 2020E EPS with revised target price (TP) of Rs 1,489.

NEWS ALERT | Indoco’s Clinical Research Organisation receives zero 483s from US FDA: bSE Filing

Alert: The inspection was held from 14th October to 18th October, 2019

NEWS ALERT | Lupin gets EIR from US FDA for Nagpur facility: BSE Filing

-- EIR indicates closure of inspection

MARKET CHECK | Top 5 gainers on the BSE


NEWS ALERT | Zee's escrow arrangement details

-- Identity of buyer, quantum of stake sale will not be revealed to lenders
 
-- Price at which stake sale is executed, and date and time of stake sale will not be revealed to lenders
 
-- Stake sale to be done via broker

(As reported by CNBC TV18)

Buzzing stock | BPCL sees sharp surge


NEWS ALERT | Zee Entertainment sends escrow arrangement to lenders for next tranche of stake sale: sources to CNBC TV18

-- Escrow arrangement one sided; favours company
 
-- Co tells lenders that they have ready buyer; Co meeting with lenders currently underway

FMCG rural growth hits 7-year low; poor consumption pulls down retail sales

Slowing fast-moving consumer goods (FMCG) market got worse during the September quarter (Q2), with volume growth in rural India plunging to a meagre 2 per cent from 16 per cent a year ago. North India, the largest market for FMCG, saw volume growth falling to 1 per cent from 17 per cent as the FMCG volume shrank by 2 per cent the villages. Slowdown in South India, however, plateaued with growth rate matching that of last year. READ MORE

MOFSL on State Bank of India (SBI)

The macro environment remains challenging with new names being added to the stressed pool. While SBIN has exposure to the stressed names, we believe that given its size, the new stress is manageable (~2% of loans), however, we have conservatively factored in credit cost assumptions of 1.9% /1.3% for FY20/FY21. SBIN’s liability side of the balance sheet is strong with high CASA ratio, which will help manage yield pressure on the asset side due to transition to the new external benchmark regime on floating rate retail & MSME loans. The stock price has corrected 29% over the past three months, which provides favorable risk-reward, in our view. Overall, we expect RoA/RoE to improve to 0.7%/12.7% by FY21 and maintain our target price at INR350 (1.1x FY21E ABV for the bank + INR94 per share for subsidiaries). SBIN remains one of our top Buys in the sector.
 

BUZZING STOCK | Oil India up over 3%


MARKET CHECK | S&P BSE PSU advances over 1.50%


RESULTS IMPACT | Zee Entertainment slips 9% in firm market post Q2 results

Shares of Zee Entertainment Enterprises (ZEEL) slipped 9 per cent to Rs 240 in the intra-day deal on the BSE on Friday after the company reported lower-than-expected consolidated net profit for July-September quarterly (Q2) as it provided for an inter-corporate deposit (ICD) worth Rs 171 crore during the period. READ MORE

BROKERAGE RADAR | HDFC Securities on Cyient

We maintain NEUTRAL on Cyient post in-line revenue and margin miss in 2QFY20. Growth challenges remain in core verticals and margin recovery is slow. We have lowered EPS estimates by 1.2/1.4 per cent for FY20/21E and our target price (TP) of Rs 485 is based on 11x Sep-21E EPS.

HDFC Bank Q2 preview: Profit seen 22% higher; growth in retail loans eyed

Analysts at Emkay Global Financial Services believe that despite the bank enjoying the overall benefit of the tax rate cut, its DTA could be hit by Rs 1,200 crore in this quarter. They say that the “benefits of the lower tax rate could get off-set by the mark-down on one-time DTA, leading to a net higher tax outflow”. They peg the net profit at Rs 6,102.6 crore, up 22 per cent YoY, from a profit of Rs 5,005.7 crore logged in Q2 of FY19. Sequentially, the PAT is likely to rise nearly 10 per cent from Rs 5,568.2 crore (Q1FY20). READ PREVIEW HERE

MARKET CHECK


The present economic crisis is worse than 2008 recession: Goldman Sachs

Many people attribute the deepening slowdown in consumption to the NBFC crisis that began in September 2018 when IL&FS went belly up following which consumption financing--a forte of shadow banks, stopped with a chill in disbursements by these players. READ MORE 

Adani Enterprises up for fifth straight day, surges 27% in one week

Shares of Adani Enterprises were trading higher for the fifth straight day, up 7 per cent to Rs 174 on the BSE in the intra-day deals on Friday after the company set up a subsidiary company named Adani Metro Transport (AMTL) to focus on metro rail projects. READ MORE  

BROKERAGE RADAR | Reliance Securities on Cyient

With several issues dogging the business, and too many moving parts to boot, we believe our view on the business requires a re-look. Slashing our EPS estimate by 11% post factoring in 40-90bps margin cut, and reducing our target PE multiple to 10x (from 12.5x earlier), we downgrade our recommendation on the stock to HOLD from BUY with a revised Target Price of Rs 462 (from Rs 610 earlier), and valuing it at average of FY21E and FY22E EPS.

BROKERAGE RADAR | Emkay Global Financial Services on TVS Motor

We retain our negative view on the stock due to expensive valuations. The stock trades at a core P/E of 31x/24x FY21/22E EPS. Maintain Sell rating with an unchanged TP of Rs 340, based on 20x Sep’21E EPS and the value of TVS Credit at Rs 44/share. We continue to remain UW in sector EAP. Upside risks include strong macroeconomic environment, lower competitive intensity and pricing discipline in the industry.

BROKERAGE RADAR | Edelweiss Securities on PVR

Despite an unfavourable base, we expect Q3FY20 to be benign for PVR owing to the solid start and robust content pipeline. We remain enthused by the company’s expansion strategy and innovation focus, supported by improvement in content quality and audience response despite rising OTT presence. We will keep tabs on time window between theatrical & digital release; and any impediments to screen expansion. We retain our 30x EPS and TP of INR2,100. We maintain ’BUY/SO’. The stock is trading at ~39x/30x FY20/FY21E EPS (32x/25x ex-Ind AS 116 adjustment).

RIL scripts history, becomes first Indian company to hit Rs 9 tn in m-cap

At 10:52 am, the stock was trading at Rs 1,420.50 apiece on the BSE, up around 2 per cent. The stock hit a high of Rs 1,428 during the session. At the time of writing of this report, the m-cap of the company stood at Rs 9,00,507 crore. READ MORE
RIL Chairman Mukesh Ambani.

NEWS ALERT | PMC Bank case: SC refuses to entertain PIL seeking relief on withdrawal limit: CNBC TV18

-- The court says relief, if any, has to be sought before relevant High Courts

Alert: PIL had challenged RBI-mandated limits placed on withdrawal of savings

PSU stocks in focus: Bharat Electronics, ITDC hit 52-week high

Shares of Bharat Heavy Electricals (BHEL), Hindustan Copper, MMTC and The New India Assurance Company surged more than 11 per cent, while MOIL, NBCC (India), NLC India, General Insurance Corporation of India (GIC Re), National Aluminium Company, Steel Authority of India (SAIL), IFCI and Shipping Corporation of India (SCI) jumped in the range of 5-10 per cent on the BSE. READ MORE

ONGC, Oil India bank on private players to boost production by end of FY20

Private players may be brought in to boost production at 66 small oil and gas fields by state-run Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) by the end of this financial year. At least 23 companies had shown interests in a pre-bid meeting held on September 17.
 
An industry source said international service providers like Schlumberger, Baker Hughes, Weatherford International, and Halliburton were keen to be part of this project. READ MORE HERE

STOCK ALERT | RIL hits market cap of Rs 9 trillion ahead of Q2 result

-- Market cap now stands at Rs 9,01,521.78 crore

-- Becomes India's most valued company

Infosys, TCS, Wipro: Trading strategies for IT stocks post their Q2 results

The second quarter results for financial year 2019 – 20 (Q2FY20) of information technology (IT) majors have been a mixed bag. For Q2, Wipro posted a 35.1 per cent rise in its net profit at Rs 2,552 crore. During the quarter, consolidated revenues of the Bengaluru-headquartered firm rose 4 per cent on year-on-year (YoY) basis at Rs 15,125 crore. READ MORE 


Momentum picks by ICICI Securities


NEWS ALERT | US tariffs on European goods would have serious repercussions, says France's Economy Minister Bruno Le Maire

-- Says, Europe is ready to retaliate, in the framework of course of the WTO

(As reported by news agency AFP)

NEWS ALERT | US imposes $7.5 billion tariffs on European Goods: AFP

-- The tariffs took effect just after midnight in Washington (9:30 am)

-- Decision came after talks between European officials and US trade representatives failed to win a last-minute reprieve.

-- Civilian aircraft from Britain, France, Germany and Spain -- the countries that formed Airbus -- will now cost 10 per cent more when imported to the US.
 
-- Wine from France, Spain and Germany will now face 25 per cent tariffs

NEWS ALERT | 1.8% equity of 3M India changes hands on NSE: CNBC TV18

-- 2 lakh shares worth Rs 421 crore exchanged at Rs 21,022 per share 

Market check | Nifty50 above 11,600 for the first time since Sept 26


Diwali Picks :: Sharekhan


Diwali Picks :: Centrum Broking

(Time horizon: 3 - 6 months)



Diwali Picks :: IDBI Capital


Diwali Picks :: LKP Securities


Diwali Picks :: IIFL


Bajaj Finance hits record high


BUZZING STOCK | New India Assurance surges 55% this week


'Freak trade': Investors push up yields of Indiabulls Housing bonds to 43%

Late on Thursday evening, the company notified exchanges that it offered to buy back all its bonds maturing in November and December at par. “The company will also evaluate further premature redemption of its non-convertible debentures from time to time,” IHFL said in its filing. This would take care of Rs 1,000-core of bonds outstanding. According to sources, the company may also consider an additional Rs 2,500 crore of bond buybacks in the days to come. READ MORE

DHFL falls over 1% post Q2 nos


ZEEL slips around 2% post Q2 results


BUZZING STOCK | BHEL jumps 22% on reports govt looking to reduce stake


Sectoral losers and gainers on the NSE


MARKET WATCH | Top losers and gainers on the S&P BSE Sensex


OPENING DEALS

At 09:16 am, the S&P BSE Sensex was trading 70 points or 0.18 per cent lower at 38,982 levels while NSE's Nifty50 index was trading at 11,563.30, down 23 points or 0.20 per cent. 

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


Market at Pre-open


Market at Pre-open


Rupee Opening Alert

Rupee opens 71.19 vs Thursday's close of Rs 71.16

September Aviation Data | Domestic air passenger traffic growth slips to 1.18%, lowest level since April 2019

-- Air India's market share for the month at 13% Vs 12.8% MoM

-- IndiGo's at 48.2% Vs 47% (MoM)
 
-- SpieceJet's market share at 14.7% Vs 15.5% (MoM)

Stocks to watch: Cipla, L&T Info, RIL, DHFL, Alicon Castalloy, ZEEL, Nocil

Here's a look at the top stocks that may remain in focus today -
 
Earnings today: About 22 companies, including Ambuja Cements, L&T Technology Services, and Reliance Industries, are scheduled to announce their September quarter results later in the day.
 
Cipla: Mumbai based Cipla Limited on Thursday said that it has acquired a patented anti-infective product named Elores from research based firm Venus Remedies Ltd for an undisclosed sum. The product is used for the treatment of life threatening infections caused by certain bateria. READ MORE

Today's picks: Tata Motors to Asian Paints, hot stocks to watch on Friday

Bank Nifty
 
Current: 28,990 (fut: 29,070)
 
Target: NA
 
Stop-long positions at 28,900. Stop short positions at 29,200. Big moves can go till 29,500, 28,500. Excess volatility likely but trend may remain positive. READ MORE

Investors avoid stocks outside A group over regulatory tightening

Regulatory tightening and concerns over governance have put companies that fall outside the so-called ‘A group’ in a tough spot. Stocks in the A group now account for nearly 93 per cent of the country’s total market capitalisation (m-cap). Those in the B group account for less than 5 per cent, while all the remaining categories represent just 1 per cent. READ MORE

NEWS ALERT | China third-quarter GDP grows 6%: Reuters

-- Growth slowest in almost three decades

-- Production hit by soft factory production

-- The third-quarter performance was also at the bottom end of the government’s full-year economic growth target of 6.0%-6.5%.

Brexit deal spells good news for India Inc with large investments in UK

The biggest relief will be felt at Bombay House, the headquarters of the Tata group, one the largest industrial investors in the UK through companies such as Tata Motors, Tata Steel, Tata Consultancy Services, Indian Hotels, and Tata Global Beverages. The group has invested nearly 50 billion pounds in the UK since its acquisition of Corus Steel in 2007. READ MORE

Commodity outlook by Tradebulls Securities: Buy Natural Gas, sell Copper

Gold: Although gold prices are currently trading below initial support at $1,500 an ounce, market is still holding on to most of its gains since June, which is a positive sign. Precious metals speculators were back to adding their Gold bullish positions this week after a sharp selloff last week by over -40,000 contracts. Short term support for Gold comes at 37,950 and there is resistance at 38,400 which is trendline taken from high of 38,950 to 38,450. READ MORE

Derivatives strategy on Voltas by HDFC Securities

Buy Voltas October 700 Call at Rs 8.40
 
Stop Loss: Rs 5
 
Target Price: Rs 15
 
Rationale:
 
Accumulation of Long build up is seen in the Voltas Futures’ during the series till now, where we have seen rise in the Open Interest with price is consolidating near current levels. READ MORE HERE

Stock recommendations from Anand Rathi: Buy HDFC Bank, Bajaj Finserv

NIFTY: BUY
 
TARGET: 11,710
 
STOP LOSS: 11,480
 
Nifty closed in the positive territory and it has achieved our short term target of 11550, now above 11625 it will zoon towards 11710 levels. The daily as well as hourly momentum indicator MACD has provided a buy crossover, hence the trend remains bullish. So, we recommend buying Nifty for the target of 11710 with a stop loss of 11480. READ MORE

Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday

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


Rupee Check

Source: Bloomberg


Oil Check

At 8:15 am, Brent Crude Futures were at $59.71 per barrel.

SGX Nifty

At 8:11 am, SGX Nifty was trading 29 points lower at 11,575 level, indicating a negative start to the indices.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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