MARKET WRAP: Sensex surges 835 pts, Nifty reclaims 11K; Nifty IT up over 3%

All the Nifty sectoral indices ended in the green, led by Nifty IT and FMCG indexes, both up nearly 3.5 per cent, each. (Representative image)
The Indian stock market ended over 2 per cent higher on Friday due to across-the-board buying. 

The S&P BSE Sensex ended 835 points, or 2.28 per cent higher at 37,389 levels with all the 30 constituents ending in the green. Bajaj Finserv (up 6.6 per cent) was the top gainer on the index, followed by HCL Tech (up over 5 per cent), and Bharti Airtel (up 5 per cent). 

NSE's Nifty, meanwhile, reclaimed the crucial 11,000 level to settle at 11,050, up 245 points, or 2.26 per cent. India VIX dropped nearly 12 per cent to 20.76 levels. 

On a weekly basis, both Sensex and Nifty declined nearly 4 per cent. 

All the Nifty sectoral indices ended in the green, led by Nifty IT and FMCG indexes, both up nearly 3.5 per cent, each.

In the broader market, the S&P BSE MidCap index gained around 3 per cent to 14,337 levels while the S&P BSE SmallCap index added 2.31 per cent to 14,496 levels. 

Buzzing stocks 

IT stocks rallied in the trade post Accenture's Q4FY20 earnings. While the company missed estimates for fourth-quarter sales and projected current-quarter revenue below Wall Street expectations, strong traction in the outsourcing business, strong order bookings, and encouraging management commentary were the key positives from the industry's standpoint. Nifty IT ended nearly 3.5 per cent higher at 19,629 levels. 

GMR Infrastructure gained over 11 per cent to Rs 23.55 on the BSE after the company said the GMR Group would divest its entire 51 per cent stake in Kakinada SEZ to reduce debt. READ MORE

Shares of Granules India ended over 4 per cent higher at Rs 376 on the BSE after US health regulator USFDA gave its approval for Naproxen Sodium and Diphenhydramine Hydrochloride Tablets, 220 mg/25 mg (OTC). READ MORE

Global markets

After the slide, it was the see-saw for markets on Friday, as stocks in large parts of the world headed for their worst weeks since peak coronavirus panic, and the dollar cemented its best run since April. London’s FTSE clawed up 0.2 per cent but Frankfurt’s Dax and the CAC40 in Paris were down 0.2 per cent and 0.4 per cent leaving the pan-European STOXX 600 index down more than 3 per cent, and travel stocks down over 6 per cent for the first time since June.

In the commodity market, oil prices edged higher but were set for a weekly decline due to mounting worries about the impact on fuel demand of a widespread resurgence in coronavirus infections, as well as some concern about the likely return of exports from Libya.

(With inputs from Reuters)

4:12 PM IST Indian benchmark indices showcased steady gains throughout the course of the trading day, before finally ending up by more than 2 per cent; almost entirely recouping the losses in yesterday’s trade. This relief rally was in spite of mostly negative global cues and seemed to be based on the hope of more stimulus measures by the government. On a weekly basis, the recovery today enabled the benchmark indices to limit to around 3.8 per cent loss for the week. FPIs have net sold close to Rs 2,000 crore so far this month, which indicated the uncertain trend in the markets, after a huge month of inflows in August.   WEEK AHEAD   In spite of the rally seen today, the market is expected to remain volatile and directionless in the absence of solid triggers. Global cues will continue to be in focus as a resurgence in virus cases around the world, leads to more restrictions and more pressure on economic recovery. Traders are advised limiting overnight positions and Investors are advised to only accumulate quality stocks for the time being.

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex gained 835 points, or 2.28 per cent to settle at 37,389 while NSE's Nifty ended at 11,050, up 245 points, or 2.26 per cent.

3:26 PM IST

3:18 PM IST The trading volumes jumped 1.5 times, with a combined 1.7 million equity shares were changing hands till 02:58 pm. There were pending buy orders for 802,000 shares on the BSE and NSE, the exchange data show. READ MORE 

3:11 PM IST

3:04 PM IST >> Permanent Court of Arbitration in Hague rules that conduct of I-T Dept is in breach of 'fair and equitable' treatment.  (Source: CNBC TV18)

2:58 PM IST The global real private final consumption expenditure (PFCE) declined at record 11 per cent YoY last quarter while global real gross capital formation (GCF) fell 6per cent, and global real government final consumption expenditure (GFCE) remained stagnant in 2QCY20. READ MORE

2:56 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(%) ADVANCED ENZYME 294.60 317.20 7.99 APOLLO HOSPITALS 2024.40 2038.25 3.89 COFORGE 2286.75 2304.50 8.21 GRANULES INDIA 376.60 395.00 4.44 SUVEN PHARMA 384.00 416.20 3.90 » More on 52 Week High

2:47 PM IST

2:41 PM IST

LIVE UPDATES

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

Indian benchmark indices showcased steady gains throughout the course of the trading day, before finally ending up by more than 2 per cent; almost entirely recouping the losses in yesterday’s trade. This relief rally was in spite of mostly negative global cues and seemed to be based on the hope of more stimulus measures by the government. On a weekly basis, the recovery today enabled the benchmark indices to limit to around 3.8 per cent loss for the week. FPIs have net sold close to Rs 2,000 crore so far this month, which indicated the uncertain trend in the markets, after a huge month of inflows in August.
 
WEEK AHEAD
 
In spite of the rally seen today, the market is expected to remain volatile and directionless in the absence of solid triggers. Global cues will continue to be in focus as a resurgence in virus cases around the world, leads to more restrictions and more pressure on economic recovery. Traders are advised limiting overnight positions and Investors are advised to only accumulate quality stocks for the time being.

SECTOR WATCH | Nifty IT ends nearly 3.5% higher


MARKET AT CLOSE | All 30 constituents of S&P BSE Sensex end in the green


CLOSING BELL

The S&P BSE Sensex gained 835 points, or 2.28 per cent to settle at 37,389 while NSE's Nifty ended at 11,050, up 245 points, or 2.26 per cent.

MARKET CHECK


Vakrangee hits 10% upper circuit on RBI's in-principle nod to set up BBPOU

The trading volumes jumped 1.5 times, with a combined 1.7 million equity shares were changing hands till 02:58 pm. There were pending buy orders for 802,000 shares on the BSE and NSE, the exchange data show. READ MORE 


MARKET CHECK | ITC rises 2.5%


NEWS ALERT :: Vodafone wins arbitration against India over retro tax demand of Rs 20,000 cr

>> Permanent Court of Arbitration in Hague rules that conduct of I-T Dept is in breach of 'fair and equitable' treatment. 

(Source: CNBC TV18)


Global GDP shrinks 7.2% in April-June 2020 due to Covid-19: Motilal Oswal

The global real private final consumption expenditure (PFCE) declined at record 11 per cent YoY last quarter while global real gross capital formation (GCF) fell 6per cent, and global real government final consumption expenditure (GFCE) remained stagnant in 2QCY20. READ MORE

Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ADVANCED ENZYME 294.60 317.20 7.99
APOLLO HOSPITALS 2024.40 2038.25 3.89
COFORGE 2286.75 2304.50 8.21
GRANULES INDIA 376.60 395.00 4.44
SUVEN PHARMA 384.00 416.20 3.90
» More on 52 Week High

MARKET CHECK :: Sensex soars over 850 pts, recovers most of Thursday's losses


HEATMAP:: All Sensex constituents trade in green, led by Bajaj Finserv, up 7%


Loan moratorium case: Adverse SC verdict could heavily affect banks in Q2

News reports suggest that the Mehrishi Committee has recommended the government to bear the brunt of this liability and a relief be provided to the most affected segment of borrowers. While this does bode well for banks, going by precedence, analysts say they would be surprised if the government offers any support. “As per our observation, unless it is a government announced scheme like a farm waiver, it is unlikely that such costs are borne by the government,” says an analyst with a foreign brokerage. Some are also of the view that if the government extends any relief it could turn counter-productive at this juncture. “There could be an uproar that this money could have been used for recapitalising government-owned banks or serving the public directly; why help the banks instead,” head of research at domestic brokerage points out. READ MORE

MARKET CHECK :: Nifty reclaims 11,000-mark


MARKET CHECK :: Sensex leaps 800 pts


Camlin Fine surges 11% in one week after it starts production at Dahej unit

Trading volumes on the counter more-than-doubled with a combined 733,000 equity shares changing hands on the NSE and BSE till the time of writing of this report. There were combined pending buy orders for 180,000 shares at 01:47 pm, exchange data show. READ MORE

Rupee Closing

Rupee ends higher at 73.61 per US dollar vs Thursday's close of 73.90/$

Q&A | Financial sector is in the middle of a perfect storm: Pankaj Murarka

Globally, we are witnessing a pullback in risk assets across the board after a ferocious rally in the last six months. After the sharp rally, equity markets are ahead of the real economy and we are witnessing profit-taking. It is a healthy correction in the bull-market and investors with a long-term view should use this pullback as an opportunity to invest in equities. As economies unlock and get back to their normalised level of activity, equities should do well over the next two-three years. READ MORE 


BUZZING STOCK :: Nestle extends gains


MARKET CHECK | Top gainers on the BSE at this hour


Q&A | Automobile sales growth would sustain going ahead: Kansai Nerolac MD

The overall recovery in the entire economy is faster than expected. People have accepted that Covid-19 is going to be there like normal flu. You can see, barring a few segment, all other people are working, all shops are now opened. So, to that extent recovery is better than the what people had thought. Definitely for the paint industry, it is better than what we had also thought and better than other sectors/industries. We are back to our normal growth level which again, I would say is a pleasant surprise for us. Fear psychosis amongst consumers amid Covid-19 has also now lowered compared to a few months back. READ INTERVIEW HERE

SECTOR WATCH :: Nifty Metal Index up over 2.5%


Cipla surges 5% on USFDA approval for dimethyl fumarate DR capsules

Shares of Cipla surged 5 per cent to Rs 772 on the BSE in the intra-day trade on Friday after the company said it has received US Food & Drug Administration (USFDA) approval for the generic version of Biogens Tecfidera (Dimethyl Fumarate) DR capsules in the US. The drug, indicated for the treatment of relapsing forms of multiple sclerosis, had annual US sales of US$3.8 billion as per IQVIA MAT July 2020. READ MORE

European indices sluggish at open


Bihar Elections 2020 :: Results on Nov 10

>> Phase 1: Oct 28

>> Phase 2: Nov 3

>> Phase 3: Nov 7

Bihar Elections 2020 :: Bihar polls in three phases from Oct 28

>> Maximum number of electors at one polling station reduced to 1000 from 1500

>> Polling time has been increased by an hour (7 am to 6 pm)

Even as Covid-19 rages, Indian economy's animal spirits are stabilising

Five of the eight high-frequency indicators compiled by Bloomberg News gained last month, while two were unchanged and one deteriorated. That kept the needle on a dial measuring so-called animal spirits steady at 4 -- a level arrived at by using the three-month weighted average to smooth out volatility in the single-month readings. READ MORE

NEWS ALERT :: RBI grants in-principle nod to set-up and operate Bharat Bill Payment Operating Unit to Vakrangee

Click here for details

ICICI Securities on Suven Pharma

Suven Pharma has turned ex-bonus from September 25, 2020, pursuant to the board approval granted for the issue of bonus shares in its meeting held on September 16, 2020. The record date for the same has been fixed as September 28, 2020. The board has recommended the issue of bonus shares in proportion of one bonus share (face value of Re 1 each) for every equity share held (i.e. 1:1). Consequently, the share price has changed to Rs 369/share from Rs 738/share. Accordingly, our target price has also been revised to Rs 385/share from Rs 770/share earlier. After the recent run-up, the stock offers limited upside from here on. We change the recommendation from BUY to HOLD. Our target price is based on 22x FY22E EPS (revised) of Rs 17.5. We will revisit the target price for a possible change in the next update.

Zydus Cadila gets USFDA nod for multiple sclerosis treatment drug

Zydus Cadila has received final approval from the United States Food and Drug Administration (USFDA) to market Dimethyl Fumarate delayed release capsules, (Tecfidera)in the strengths of 120 mg and 240 mg, Zydus Cadila, part of Cadila Healthcare group, said in a regulatory filing. READ MORE

Granules India up 5% on USFDA approval for generic Aleve PM tablets

Shares of Granules India gained 5 per cent at Rs 377 on the BSE on Friday after US health regulator USFDA gave its approval for Naproxen Sodium and Diphenhydramine Hydrochloride Tablets, 220 mg/25 mg (OTC). The company today announced that the US Food & Drug Administration (US FDA) has approved its Abbreviated New Drug Application (ANDA) for Naproxen Sodium and Diphenhydramine Hydrochloride Tablets, 220 mg/25 mg (OTC), generic equivalent of Aleve PM Tablets, 220 mg/25 mg, of Bayer HealthCare LLC. READ MORE

BROKERAGE VIEW | Emkay Global on Indian IT sector

We see a limited read-through from Accenture's results for Indian technology companies in general due to business mix differences (Indian peers’ exposure to the Consulting business is much lower than that of ~55% for ACN). ACN's Q4 performance and guidance came lower than expectations largely due to the weakness in
Consulting. Sustained healthy momentum in outsourcing business revenue and booking augurs well for Indian peers. Nifty IT index gained ~30%/~60%/~20% in last 3M/6M/CYTD and current valuations largely capture the improving demand environment, in our view. Uncertainties around the outcome of US elections, healthcare crisis and slowing global growth will keep the optimism in check and may weigh on stocks.

Wrong idea in market that we are not professionally run: Top UTI AMC exec

Thirteen years after it was first mooted, UTI AMC is set to hit the market with an initial public offering of Rs 2,160 crore that will enable its five shareholders to offload 30.75 per cent, valuing the AMC at over Rs 7,000 crore. READ MORE

HCL Tech surges 6%


ALERT :: Sensex at day's high


Broader markets outrun benchmarks


MARKET CHECK :: Indices gain momentum


Bharti Airtel gains 5% after falling 11% in 2 trading sessions

Till Thursday, stock of Bharti Airtel has corrected 32 per cent from its all-time high level of Rs 612 touched on May 20, 2020, due to investor concerns on mobile tariff hike delay. In comparison, the S&P BSE Sensex has rallied 20 per cent during the same period. READ MORE

NEWS ALERT :: SC allows for issue of spectrum sale under IBC to be decided by NCLAT in the case of Aircel

>> Ranjit Kumar for Aircel Monitoring Committee to SC says Resolution plan has been approved, matter pending before NCLAT
 
>> Kumar says, SC had directed for Spectrum sale under IBC to be decided by NCLT, may be modified for issue to be decided by NCLAT.

>> Govt: Not opposed to NCLAT deciding the issue of Spectrum sale under IBC.
 
>> CoC for R.Comm: R.Comm insolvency is pending before the NCLT, have no issue with SC verdict.

Alert: Aircel Monitoring Committee had moved SC to seek clarity if NCLAT can decide the issue.

IT stocks -- TCS, Infosys, HCL Tech -- among top contributors to Sensex's gain today


Accenture Q4FY20 earnings: Five key takeaways for the Indian IT companies

Stressed verticals
 
Analysts at Nomura note that Accenture's weakness is restricted to stressed verticals such as retail, manufacturing, travel, and energy, which contributed nearly 20 per cent of revenues for the company at the end of FY20. READ MORE 


Investment in IndusInd Bank stocks a value bet, but tread with caution

The prolonged correction in banking stocks has tempted investors to look at underperformers. IndusInd Bank, despite its massive recovery from its all-time low of Rs 235 a share, is one such candidate thanks to its 65 per cent year-to-date underperformance. READ MORE

New entrants unlikely to impact gas distrbution players till FY23

Draft regulations by the Petroleum and Natural Gas Regulatory Board (PNGRB), for third parties, has once again put the spotlight on competition. These norms, drafted by the oil and gas regulator, pertain to transportation tariffs for third parties that use the city gas and compressed natural gas (CNG) distribution network of existing players. READ MORE

SECTOR WATCH:: Telecom stocks gain

COMPANY LATEST(rs) CHG(%)
VODAFONE IDEA 9.28 1.75
BHARTI AIRTEL 435.90 4.07
TATA COMM 790.45 1.04
» More

Top gainers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
ADVANCED ENZYME 306.25 12.26
GMR INFRA. 22.95 8.25
VINATI ORGANICS 1253.00 7.82
IRB INFRA.DEVL. 109.85 7.38
I D F C 31.70 6.91
» More on Top Gainers

Prince Pipes hits highest level since listing; stock zooms 242% in 4 months

Shares of Prince Pipes and Fittings were at Rs 260 -- their highest level since listing -- up 8 per cent on the BSE in the intra-day trade on Friday. In the past four months the stock of the plastic products maker has zoomed 242 per cent from a level of Rs 75.90, as compared to 20 per cent rise in the S&P BSE Sensex. Prince Pipes and Fittings had made a tepid debut at the bourses on December 30, 2019. The stock got listed at Rs 160, an 11 per cent discount to its issue price of Rs 178. READ MORE

Syngene: Investors with long term view should look at the stock on dips

Syngene International, which has gained 20 per cent over the past two weeks, hit its all-time high of Rs 596.85 a share on Thursday. Approval by the Indian Council of Medical Research for its anti-body testing kit was the key trigger. The company has tied up with biosciences company HiMedia Laboratories for manufacture of the test kit. READ MORE

Earnings decline slows Nifty run after rallying nearly 50% from March lows

The equity markets have hit a hard ceiling after bouncing nearly 50 per cent from the March 20 lows. And the reason could be a steady decline in corporate earnings after they hit a high in the December quarter following the cut in corporate income tax. READ MORE

GMR Infrastructure gains 4% on stake sale in Kakinada SEZ

“The company has signed definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding of its entire 51 per cent stake in Kakinada SEZ (KSEZ) to Aurobindo Realty and Infrastructure,” GMR Infrastructure said in exchange filing. READ MORE

MARKET UPDATE :: Sensex off highs


Rupee Opening

Rupee opens stronger at 73.75 per US dollar vs Thursday's close of 73.90/$

Chris Wood bullish on cyclical stocks; sees more stimulus from US Fed

He believes that the world is nearer to the end of the Covid-19 pandemic now as opposed to a few months ago, in line with Farr’s law, which says that once peak infection is reached, then it will roughly follow the same symmetrical pattern on the downward slope – a bell curve. Second, Wood expects fears of any renewed downturn, as have begun to get reflected in the risk-off market sentiment in the recent days, will lead to further monetary and fiscal stimulus. This, in turn, should keep the liquidity tap flowing and support markets. READ MORE

Granules India hits 52-week high on report KKR, Bain in line to pick stake


Advanced Enzyme Technologies soars 30% in 2 days after FPI picks 4% stake

Shares of Advanced Enzyme Technologies rallied 8 per cent to Rs 295 on the National Stock Exchange (NSE) in the early morning trade on Friday after foreign portfolio investor (FPI) bought nearly 4 per cent stake in the company via open market. The stock of the agricultural products company was trading at its fresh 52-week high and has soared 30 per cent in the past two trading days. READ MORE

Nifty rejig impact :: Divi's Lab trades flat with positive bias


GAIL up around 2%


Tata Coffee leaps 4%

>> Tata Coffee is learnt to be in the initial stages of negotiations to acquire 12,000 hectares of coffee plantations that belonged to V G Siddhartha, the founder of Café Coffee Day Enterprises, for a valuation of Rs 1,200-1,500 crore.


RIL up 1%

>> Reliance Retail, according to reports, is in talks with Electronics Mart India, a consumer durables retail chain, for a possible acquisition. Electronics Mart operates 60 stores in South India with 1,200 employees on its roll. 


IT stocks trade higher post Accenture results


MARKET UPDATE :: Indices extend gains

>> Sensex zooms 412 points, or 1.13 %, at 36,966 level

>> Nifty at 10,922 level, up 106 points or 1%

Sectoral trends :: Metals, Pharma stocks top gainers


Sensex Heatmap :: All constituents trade in the green


First Trade


First Trade


Rollover Analysis :: Edelweiss Securities

>> The run of three successive winning expiries finally came to a halt as Nifty ended the September series down 6.5%. While we don’t want to be drawn into a debate whether the next leg of decline has commenced, the current round of correction has definitely weakened the price structure across stocks and indices.

>> The index has taken support near the 200DMA and in near term a revisit of 10650(100 DMA) looks a possibility. On the upside 11,100 and 11,300 (neckline of the head and shoulders breakdown) will be major resistance for the index. Also interestingly, the Nifty OI (shares) at start of the series is at multi month lows. Such lighter OI base makes the index susceptible to sharp moves.

>> A major achilles heals for the market has been banks. Going into the October series, Bank Nifty has seen short additions (Price/ OI:-13%/+32%).
 

Rollover Analysis :: IIFL Securities

>> Markets witnessed a sharp selloff throughout the September series as across the board profit booking and fresh short selling weighed in. Bank Nifty index underperformed the Nifty index by a whopping ~7%, reversing the outperformance of the previous series, with both the indices closing ~13.3%/6.5% lower on eoe basis.

>> Long gamma & long vega positions were the flavour of the series as the option writers ran for cover on account of a sharp delta move in the Bank Nifty index. Nifty IT index was among the biggest outperformer, closing ~5% higher. India Vix index closed the series at ~23.5, up ~25% on eoe basis.

>> Rollovers of Nifty/Bank Nifty in September stood at 71%/79% (0.84 cr/17.4 lakh shares) as against 78%/75% (1.12cr/13.6 lakh shares) in the last series, while market-wide rollovers stood at 92% vs 87% in the last series. 


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


Markets at Pre-Open


Markets at Pre-Open


BROKERAGE VIEW :: Nirmal Bang on Accenture

Unlike the 5-8% local currency (LC) growth guidance that it used to start with in recent years, Accenture’s guidance of 2-5% LC growth for FY21 (Aug YE) is slower and is a story of two halves with 1H growth likely in the -3% to 0% range followed by high single digit to low double-digit growth in 2H. This is due to impact of Covid-19. Among the assumptions driving a 2HFY21 pick up (which coincides with 1HFY22 of Indian players) are: (1) a pickup in macroeconomy (2) Strategy and consulting - discretionary spending - making a comeback (3) larger transformation programs being executed, and (4) base effect.

Accenture also sounded bullish from a medium-term perspective indicating that industry is likely witnessing a ‘once in an era replatforming of businesses’ and that this is getting crunched into a shorter time frame. Something that would have taken 10 years will now happen in 5. However, we need to see if strong growth indicated for 2HFY21 is something that will continue in the medium term.

BROKERAGE VIEW :: Kotak Institutional Equities on Accenture result

Accenture’s revenues in 4QFY20 missed consensus estimates, an unusual event for the company. Guidance for FY2021 at 2-5% was weak and captured the impact of pressure on discretionary spending. There were a few positives from the results/ management commentary—strong bookings, significant acceleration in growth in 2HFY21 to high single digit to low double digit and belief of significant pull forward in transformational spending. Read through for Indian IT—some near term negatives even as underlying trends are encouraging.

Stocks to watch out for today

IT stocks may trade under pressure today after Accenture forecast current-quarter revenue below Wall Street expectations and missed estimates for fourth-quarter sales, hurt by lower spending from clients impacted by the Covid-19 pandemic. Meanwhile, Accenture's total revenue fell 2 per cent to $10.84 billion in the quarter ended August 31, missing analysts’ estimate.
 
RIL: Reliance Retail, according to reports, is in talks with Electronics Mart India, a consumer durables retail chain, for a possible acquisition. Electronics Mart operates 60 stores in South India with 1,200 employees on its roll. 
 
Cipla: The company on Friday announced that it has received final approval for its Abbreviated New Drug Application (ANDA) for Dimethyl Fumarate DR Capsules 120mg, 240mg, and 120mg/240mg Starter Pak from the United States Food and Drug Administration (US FDA). READ MORE  

BROKERAGE VIEW :: MOFSL on Havells India

CMP: Rs 669 | TP: Rs 635 (-5%) | Reco: Neutral

Our channel check suggests sound recovery in the B2C business, with scope for primary growth higher than secondary growth going into the festive seasons (owing to channel refilling). We raise our FY21E/FY22E estimate by 14%/6%. We maintain a Neutral rating, with TP of Rs 635 (45x Mar’22E), as we await a better entry point on the stock.

BROKERAGE VIEW :: MOFSL on Accenture results

>> Accenture’s revenue at USD10.8b (-1% YoY CC) was largely in line with consensus estimate of USD10.9b. Software, Lifesciences, and Public Services continued to do well, while Communication and BFSI were largely stable. Health & Public Services (12% YoY CC), the biggest growth driver for Accenture (19% of revenues), may not benefit Indian companies in the same way due to them having relatively lower exposure (6-14 % of revenues).

>> Strong order booking (8% YoY), driven by outsourcing, implies demand is on the path to normalization /recovery. Accenture’s guidance for high single digit to low double digit revenue growth in 2HFY21 (Mar-Aug’21) and 10-30bp EBIT margin expansion over FY20 is encouraging for Indian IT companies.

>> We see Accenture’s results and commentary as a mere reiteration of the adaptability and resilience of the business model. We continue to like Infosys/HCLT among Tier I and LTI/Mindtree among Tier II. 

ALERT :: Antique Broking on Nifty Rejig

Expected flows, $ mn
SBI Life: 93
DIVIS Lab: 120
ONGC: 11
HDFC Life: 8
NHPC: 0
HDFC Bank: -33
INDUSIND Bank: -15
Powergrid: -10
Adani Ports: -3
ZEEL: -58
Infratel: -49

Assumed size:
Nifty: $14bn
Bank Nifty: $3bn
CPSE: $1.5bn

ALERT :: Nifty rejig effective from today

>> SBI Life Insurance and Divi's Laboratories will enter benchmark index Nifty 50 from September 25
 
>> Bharti Infratel and Zee Entertainment Enterprises will be dropped from the Nifty 50
 
>> SBI Life Insurance Company and Divi's Laboratories, NHPC, Page Industries and Shriram Transport Finance Company will be excluded from Nifty Next 50. In their places, Adani Green Energy, Alkem Laboratories, Bharti Infratel, Larsen & Toubro Infotech and Tata Consumer Products will be added in the index.

Stock recommendations by Anand Rathi

SELL L&TFH | TARGET: 52 | STOP LOSS: 59
 
The stock has provided breakdown from a double-top formation, which was placed at 59 levels. It is also making a lower top and lower bottom formation on the daily chart. The momentum indicators and oscillators are in the sell mode on the daily as well weekly scales which hints at a further downside pressure in the counter. READ MORE

Here's a derivative strategy on RBL Bank

Buy RBL Bank Oct 150 Put at Rs 9
 
Lot Size: 2600
 
Rationale:
 
Short build up is seen in the RBL Bank Futures’ where we have seen 2%(Prov) rise in the Open Interest with Price falling by 5%. READ MORE

Fresh lockdown will affect silver more, says Bhavik Patel of Tradebulls Sec

Silver has witnessed more breakdown compared to gold as fresh lockdown will affect silver as base metal more. Also, return of silver from March till early September was more, so it is correcting more too. Silver volatility is trading at 49, sitting far from the monthly high (60.37) and near to monthly low (42.89). Since 1st Sept, Silver volatility is decreasing. Despite sharp fall in silver prices, silver volatility has jumped just from 43 to 49. READ MORE

Bulk deals on NSE as on Thursday

Bulk deals on BSE as on Thursday

DIIs saw inflow of Rs 188 cr on Thursday


Rupee check

Source: Reuters


Oil steady as market eyes coronavirus hit to demand

Oil prices were little changed on Friday but on track for a weekly fall on concerns that a global resurgence of Covid-19 infections will constrain fuel demand, while the likely return of exports from Libya will add to supply.

Brent crude LCOc1 was down 2 cents at $41.92 a barre, while US West Texas Intermediate (WTI) crude CLc1 was 3 cents firmer at $40.34.

(Source: Reuters)

Dow Jones Futures up 122 pts


SGX Nifty update

>> At 8:25 am, the index was at 10,905.20 level, up 65.25 points or 0.60%

Asian shares rise on tech rally, renewed stimulus hopes

Source: Reuters


Wall Street closes up on tech rally despite mixed signs on economic rebound

Source: Reuters


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