MARKET WRAP: Sensex up 292 pts, Nifty ends at 11,428; auto, metals rally

Buying in select blue-chip counters such as HDFC Bank, HUL, ITC and Maruti lifted benchmark indices on Tuesday. Positive global cues, too, boosted investor sentiment. 

The S&P BSE Sensex rallied 292 points or 0.76 per cent to end at 38,506.09 levels while the NSE's Nifty50 index closed above the crucial 11,400-mark at 11,428.30, up 87 points or 0.77 per cent.

Out of 30 components of the Sensex, 24 ended in the green and 6 in the red. Vedanta (up 4 per cent) emerged as the biggest gainer on the index and Bharti Airtel was the top drag. 

Market breadth was in favour of sellers as out of 2,657 companies traded on the BSE, 1,363 declined and 1,104 advanced while 190 scrips remained unchanged. 

In the broader market, the S&P BSE MidCap index closed at 13,940.15 levels, up 99 points or 0.72 per cent while the S&P BSE SmallCap index ended at 12,773.61, down 14 points or 0.11 per cent.

Among the sectoral indices on the NSE, barring Nifty IT index, all the other indices ended in the green. Auto stocks advanced the most, followed by metal and private bank counters. The Nifty Auto index ended over 2 per cent higher at 7,688.25 levels. 

Volatility index India VIX declined 3.67 per cent to 16.79 levels. 

GLOBAL MARKETS

Asian stocks and the pound gained on Tuesday as investors held out hope that Britain still had a chance of avoiding a messy exit from the European Union at key negotiations this week. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent. Australian shares were up 0.17 per cent, while Japan's Nikkei stock index was up 1.86 per cent. The pan-region Euro Stoxx 50 futures STXEc1 rose 0.23 per cent, German DAX futures were 0.16 per cent higher, while FTSE futures were up 0.12 per cent.

In commodities, oil prices slipped. Brent crude fell 42 cents, or 0.71 per cent, to $58.93 a barrel, while US West Texas Intermediate (WTI) crude dropped 44 cents, or 0.82 per cent, to $53.15.

(With inputs from Reuters)


3:36 PM IST

3:35 PM IST

3:34 PM IST The S&P BSE SEnsex closes 292 points, or 0.76 per cent, higher at 38,506 level. On NSE, the Nifty50 settled above 11,400-mark at 11,431, up 89 points or 0.79 per cent.

3:28 PM IST -- The Buyback Offer Size is 9.76% of the fully paid up equity share capital and free reserves of the Company based on Standalone accounts for the financial year ended March 31, 2019 and is within the statutory limits of 10% of the fully paid-up equity share capital and free reserves as per the last standalone audited accounts of the Company.

3:19 PM IST -- 3.2 cr shares traded in a block deal at Rs 194.05/ share -- No single entity, other than promoters, hold more than 10% stake in Co

3:15 PM IST

3:09 PM IST Making a pitch higher tariffs, Bharti Airtel Chief Executive Officer Gopal Vittal on Tuesday said that the rates at the current level were “unsustainable” and should go up. Speaking on the interconnect usage charges (IUC) he said that the industry is awaiting the outcome on the consultation paper floated by the Telecom Regulatory Authority of India (TRAI) on the subject. READ MORE

2:57 PM IST -- Sajjan Jindal's releases 7.01 cr JSW Steel shares (2.90% equity) & 11.88 cr JSW Energy shares (7.24% equity) Click here for shareholding pattern at the end of Q2

2:49 PM IST

2:41 PM IST Bajaj Consumer’s consolidated operational revenue during the quarter grew in single digits - 2.5 per cent at Rs 220 crore due to demand weakness. It had posted revenue of Rs 215 crore in the year-ago quarter. Net profit was up 11 per cent year on year (YoY) to Rs 56 crore, due to lower tax outgo. EBITDA (earnings before interest, tax, depreciation and amortisation) margin expanded around 20 basis points (bps) YoY to 28.6 per cent. READ MORE  

LIVE UPDATES

Sectoral trends at NSE at close


Top gainers and losers on S&P BSE Sensex at close


Closing Bell

The S&P BSE SEnsex closes 292 points, or 0.76 per cent, higher at 38,506 level.

On NSE, the Nifty50 settled above 11,400-mark at 11,431, up 89 points or 0.79 per cent.

NEWS ALERT | Star Cement buyback to open on Oct 22 and end on Nov 5: BSE filing

-- The Buyback Offer Size is 9.76% of the fully paid up equity share capital and free reserves of the Company based on Standalone accounts for the financial year ended March 31, 2019 and is within the statutory limits of 10% of the fully paid-up equity share capital and free reserves as per the last standalone audited accounts of the Company.


NEWS ALERT | 22% equity of Bajaj Consumer exchanged on BSE: CNBC TV18

-- 3.2 cr shares traded in a block deal at Rs 194.05/ share

-- No single entity, other than promoters, hold more than 10% stake in Co

Buzzing | Biocon gains over 2%


Airtel CEO Gopal Vittal says current rates unsustainable, need to go up

Making a pitch higher tariffs, Bharti Airtel Chief Executive Officer Gopal Vittal on Tuesday said that the rates at the current level were “unsustainable” and should go up. Speaking on the interconnect usage charges (IUC) he said that the industry is awaiting the outcome on the consultation paper floated by the Telecom Regulatory Authority of India (TRAI) on the subject. READ MORE

NEWS ALERT | Sajjan Jindal releases shares in Group companies: BSE filing

-- Sajjan Jindal's releases 7.01 cr JSW Steel shares (2.90% equity) & 11.88 cr JSW Energy shares (7.24% equity)

Click here for shareholding pattern at the end of Q2

Market check | Sensex trades near day's high; gains over 400 pts intra-day


Bajaj Consumer tanks 16% in two days post Q2 results, hits over 4-year low

Bajaj Consumer’s consolidated operational revenue during the quarter grew in single digits - 2.5 per cent at Rs 220 crore due to demand weakness. It had posted revenue of Rs 215 crore in the year-ago quarter. Net profit was up 11 per cent year on year (YoY) to Rs 56 crore, due to lower tax outgo. EBITDA (earnings before interest, tax, depreciation and amortisation) margin expanded around 20 basis points (bps) YoY to 28.6 per cent. READ MORE  

Asia Market Check

(Source: Bloomberg)

HUL gains 3% post steady Q2 nos; brokerages see over 12% upside in 12 mths

The FMCG bellwether on Monday reported a 21.2 per cent year-on-year (YoY) growth in net profit to Rs 1,848 crore for the July-September quarter (Q2) of FY20. Growth was aided by lower corporation tax, which came into effect last month. Volume growth, however, for Q2 remained the same as reported in the June quarter, coming in at 5 per cent, though some analysts said it was ahead of their estimates of 4 per cent for the period. READ MORE 


Market check | Indices volatile


NEWS ALERT | Bharti Airtel waives off postpaid plan rental charges, for the service suspension phase, in J&K: CNBC TV18

-- Facility available to Airtel Thanks customers.

NEWS ALERT | Govt sells 1.28 cr shares in Coal India in Q2: BSE filing

-- Central govt held 70.96 per cent (or 437 crore shares) as of June 2019

-- Govt, now, holds 69.26 per cent (or 426 crore shares) as of Sept 2019

Check statement here

Buzzing | Bajaj Consumer extends decline post weak Q2 nos


Indian Bank hits 52-week low


Sector watch | 14 of 15 constituents advance at Nifty Auto index


Market check | Sensex off high


Stocks that hit 52-week high on BSE

COMPANY LATEST 52 WK HIGH PREV HIGH PREV DATE VOLUME
ASIAN PAINTS 1814.80 1824.15 1819.55 23-SEP-2019 26692
FINE ORGANIC 1906.20 1930.50 1885.00 14-OCT-2019 4853
MAHINDRA LIFE. 450.20 454.15 454.00 14-OCT-2019 999

Tata Sons plans to reduce debt, step up investments with TCS dividend

With a Rs 12,166-crore dividend bonanza from its subsidiary, Tata Consultancy Services, Tata group holding company Tata Sons’ top priority would be to reduce debt and make more investments in the infrastructure and aviation businesses. READ MORE

NEWS ALERT | Prime Focus-arm DNEG submits application to UK Financial Conduct Authority for IPO: BSE filing

-- Company, namely, DNEG Limited (the “DNEG”), has announced its intention to publish a registration document, that has been submitted for approval to the United Kingdom Financial Conduct Authority, and is considering proceeding with an initial public offering of its ordinary shares.

-- Pending a decision to proceed with its intention to IPO, DNEG would apply for admission of its ordinary shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange’s main market for listed securities.

-- Intends to raise £150 million via IPO
 

Market check | Sensex rises 300 pts


Bandhan Bank, Gruh Finance trade firm ahead of record date for amalgamation

The National Company Law Tribunal (NCLT) on September 18 cleared the scheme of amalgamation between Kolkata-based Bandhan Bank and Ahmedabad-based Gruh Finance. READ MORE 

NEWS ALERT | Air India failed to comply with Rs 100 cr/month payment by co: IOC

- Will resort to stopping supply of jet fuel to Air India starting Oct 18

Top gainers on the BSE at present


Adani Transmission surges 14% on acquisition of WRSS Transco

Shares of Adani Transmission surged 14 per cent to Rs 255 on the BSE on Tuesday after the company said it has signed a share purchase agreement and completed the acquisition of the WRSS XXI (A) Transco Limited, incorporated by REC Transmission Projects Company. The stock was trading close to its 52-week high level of Rs 256, touched on November 28, 2018. READ MORE

Wipro Q2 preview: Analysts see 1.3% QoQ revenue growth in constant currency

After muted show by its peers Tata Consultancy Services (TCS) and Infosys, Wipro, too, is expected to report subdued numbers when it releases its second quarter results for the financial year 2019-20 (Q2FY20) on Tuesday.
 
The IT services company has seen some improvement in its revenue growth in the last few quarters but, as per analysts, it continues to lag peers on a relative basis. READ MORE

Sector watch | Nifty Metal index declines


Jain Irrigation trades lower as S&P downgrades it to "D"

-- Cites "missed principal payments" as the reason, cautions "may turn NPA"


NEWS ALERT | Jindal Drilling Industries bags order from ONGC: BSE filing

-- The Company has been awarded contract from Oil and Natural Gas Corporation Limited (ONGC) for charter hire of Offshore Drilling Rig for contract period of 3 years, it said in the filing.

LVB, Syndicate Bk hit 52-wk low as RBI imposes penalty for violating norms

Individually, shares of LVB were locked in the lower circuit band of 5 per cent at Rs 22.05 apiece, also its new all-time low, while shares of Syndicate Bank dipped up to 2.2 per cent to trade at Rs 24 per share. In comparison, the benchmark S&P BSE Sensex was trading 100 points, or 0.28 per cent, higher at 38,320 level at 9:45 am. READ MORE

Spectrum price reform in the works: Telecom minister Ravi Shankar Prasad

Inaugurating the annual India Mobile Congress on Monday, Telecom Minister Ravi Shankar Prasad said the Centre was considering “pricing reforms in the sector”, possibly hinting at making the upcoming spectrum auction, especially in the 5G band, more attractive to the industry. Telecom operators, battling financial stress, have for long voiced their protest against the high base price of 5G spectrum. Most telcos are planning not to bid for 5G unless the government reviews the price. READ MORE

Edelweiss Securities on HUL

We envisage HUL to be key beneficiary of the anticipated rural recovery and herbal-push, and expect its decent volume growth to sustain. With the push-for-premium sustaining, we expect better earnings growth. Rolling forward the valuation leads to TP of INR2,250 (55x, 12-month forward PE). We maintain ‘BUY/SO’. At CMP, the stock is trading at 49.2x FY21E EPS.

We want to tie up with Reliance Jio, says Huawei India CEO Jay Chen

Chinese telecom equipment maker Huawei, which is awaiting India’s decision on whether it can be part of the 5G ecosystem in the country or not, is betting on a long-term strategy here.
 
Megha Manchanda caught up with Huawei India CEO Jay Chen at the India Mobile Congress to discuss the challenges and the opportunities that the firm faces in this country.  READ FULL INTERVIEW HERE
Jay Chen

Momentum Picks by ICICI Securities


NEWS ALERT | Indiabulls Hsg makes repayment of the entire maturity proceeds for Masala Bonds: BSE filing

--The Company has today made the repayment of the entire maturity proceeds from the pre-funding done to Axis Trustee

Alert: Masala Bonds worth Rs 1,330 crore were issued by the company in September 2016 and were due to mature on 15th October 2019. 




HUL gains over 1% post steady Q2 nos


Infosys continues to slide, down around 2%


BUZZING STOCK | Indiabulls Housing Finance slips over 5%


Sectoral gainers and losers on the NSE


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


OPENING DEALS

At 09:25 am, the S&P BSE Sensex was ruling at 38,319.93 levels, up 105 points or 0.28 per cent while NSE's Nifty50 index was trading at 11,366.15, up 25 points or 0.22 per cent. 

UTI MF opposes 42% haircut for IL&FS entity, challenges its 'amber' status

UTI Mutual Fund (MF) has taken objection to IL&FS group officials' proposal that lenders should take 42 per cent haircut on their exposure to the group's special purpose vehicle -- Jorabat Shillong Expressway (JSEL).
 
"UTI MF has strongly objected to the proposal shared as it completely ignored the sponsor undertaking and differentiation between secured and unsecured lenders," the fund house said in an investor note. READ MORE

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 flat at 71.24/$ vs Monday's close of Rs 71.23/$

BSE to suspend trading in Manpasand, Binani, 14 others from November 4

8K Miles Software Services, Atlas Cycles (Haryana) Ltd, Dion Global Solutions, Dolphin Offshore Enterprises (India) Ltd, High Ground Enterprise, JJ Exporters, Marg Ltd, Mayur Leather Products, Rathi Graphic Technologies, Sang Froid Labs (India) Ltd, Supreme Infrastructure India, Cosboard Industries, NR International and Real Growth Commercial Enterprises are the companies facing suspension. READ MORE

Shaktikanta Das to meet heads of public sector banks today

Reserve Bank governor Shaktikanta Das will meet the heads of the state-run banks on Tuesday, officials said.
 
The meeting comes a day after the bankers met finance minister Nirmala Sitharaman in the Capital.
 
Bankers' parleys with top policymakers come at a time when growth has slowed to a six-year low due to consumption slowdown and lack of private sector investments. READ FULL REPORT HERE

Investors bet big on HDFC Bank stock despite severe lending crisis

All around HDFC Bank, India’s biggest lender by market value, the news seems to be bad and getting worse: Economic growth is slowing, loan losses are rising and shadow banks are mired in crisis.
 
And yet investors keep piling into HDFC Bank’s stock, convinced it will emerge a winner from India’s financial woes. The company’s market value has surged by $21 billion over the past year, more than any other bank worldwide. Among the 25 biggest lenders globally, no other stock commands a higher price relative to earnings or net assets. READ MORE

Kerala-based CSB Bank gets Sebi's go-ahead to float initial public offering

Kerala-based CSB Bank, formerly known as Catholic Syrian Bank, has received Securities and Exchange Board of India’s (Sebi’s) go-ahead to float an initial public offering (IPO).
 
The private sector lender, which filed draft papers with the markets regulator in August, received its observations on October 1, latest update with Sebi showed. READ REPORT HERE

Stocks to watch: HUL, Wipro, ACC, oil-linked companies, LVB, Manpasand Bev

Here's a look at the top stocks that may remain in focus today -
 
HUL: The September 2019 quarter (Q2) results of fast-moving consumer good (FMCG) major Hindustan Unilever (HUL) was a tad better than the Street’s expectations. While net sales grew by 6.2 per cent YoY to Rs 9,708 crore, net profit jumped 21.2 per cent to Rs 1,848 crore. READ MORE
 
Earnings today: As many as 17 companies, including Wipro, ACC, and Karnataka Bank, are scheduled to announce their September quarter results today. READ MORE

Cabinet likely to take up Bharat Petroleum stake sale issue by October-end

The Union Cabinet is likely to take up the stake sale of Bharat Petroleum Corporation (BPCL) by the end of this month. The government is expected to sell its entire 53.29 per cent in BPCL within this financial year. The government is expecting interest from various global and private sector partners, including Adani-Total, Reliance-BP, and Saudi Aramco, to aggressively participate in the bidding. READ MORE

Indian pharmaceutical companies spread business to avoid regulatory ire

In 2019 so far, Indian drug makers (including active pharmaceutical ingredient makers) got 11 warning letters from the US drug regulator —much more than the seven which came in all of 2018. Major companies say to de-risk their business; they have developed alternative sites for their key products. READ MORE HERE

Fresh initiatives and business mix shift positives for Bharat Forge stock

The company has plans to invest Rs 1,500 crore- Rs 1,600 crore over the next couple of years towards building its capacities across key geographies of India, the US, and Germany, especially in areas such as aluminium forging, transmission products, and e-mobility products. READ MORE

Despite a few positives, analysts cautious on stocks of steel companies

Stocks of steelmakers such as Tata Steel, JSW Steel, Steel Authority of India (SAIL), and Jindal Steel & Power (JSPL), which have been major laggards on the bourses in the past one year, clocked gains of 1.4-2.1 per cent on Monday. The trigger came from some positive news flow on US-China trade talks. READ MORE

HUL delivers a decent performance in Q2 amid economic slowdown; sales up 6%

The September 2019 quarter (Q2) results of fast-moving consumer good (FMCG) major Hindustan Unilever (HUL) was a tad better than the Street’s expectations. While net sales grew by 6.2 per cent year-on-year to Rs 9,708 crore, net profit jumped 21.2 per cent to Rs 1,848 crore, compared to expectations of Rs 9,784 crore and Rs 1,795 crore, respectively, according to Bloomberg consensus. READ MORE

Today's picks: From UPL to Coal India, hot stocks to watch on Tuesday

Bank Nifty
 
Current 28182 (fut: 28210)
 
Target: NA
 
Stop long positions at 28025. Stop short positions at 28400. Big moves could go till 27800, 28600. Trend could go negative again. READ MORE

Top stock recommendations by Anand Rathi: Buy Asian Paints, Cummins

ASIAN PAINTS: BUY
 
TARGET: Rs 1,880
 
STOP LOSS : Rs 1,750
 
The stock has provided a breakout from the falling channel on the daily charts with a buy crossover in its daily momentum indicators. It seems to have completed a wave IV on the daily charts and wave V up seems to have started. 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 Check

-- Oil prices dropped again on Tuesday after falling heavily in the previous session, as weak Chinese economic data for September added to lingering concerns about the feasibility of the U.S.-China trade deal announced by President Trump late last week.

-- Brent crude futures fell 30 cents, or 0.5 per cent, to $59.067 barrel by 7:12 am.

SGX Nifty

At 8:00 am, the Singaporean Exchange for Nifty Futures were at 11,378 level, up 43 points.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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