MARKET WRAP: Sensex up 95 pts; PSBs rally; Bajaj Auto up 1% post Q2 results

Photo: Kamlesh Pednekar
Domestic indices ended Wednesday's lacklustre trade in the green supported by buying in select index heavyweights like HDFC, Maruti Suzuki, and ICICI Bank.

The benchmark S&P BSE Sensex settled 95 points, or 0.24 per cent, higher at 39,059 level. 10 of the 30 shares listed on the index ended the day in the red. HCL Tech, up 3 per cent, settled the day as the top gainer, while Bharti Airtel, down 3.5 per cent, closed as the biggest laggard. The index touched an intra-day high and low of 39,196.67 and 38,866.08, respectively.

On NSE, the broader Nifty50 index closed at 11,604-mark, up 16 points or 0.14 per cent. 

In the broader market, the S&P BSE mid-cap index settled 12 points, or 0.08 per cent, lower at 14,395 level. The S&P BSE small-cap index, on the other hand, closed 33 points, or 0.25 per cent, higher at 13,223 level.

Sectorally, Nifty Auto and PSU Bank indices ended the day as top gainers, up between 1.3 to 1.8 per cent. On the downside, Nifty Media index slipped the most, down 1.3 per cent.

 
Meanwhile, S&P Global Ratings said Wednesday that the risks of contagion are rising in the Indian financial sector and any failure of a large shadow lender could lead to a “solvency shock” to banks. India’s shadow lenders get a substantial part of their funding from banks, and the weaker ones have seen a sharp rise in their borrowing costs and a big drop in their equity values, the ratings firm said in a report. That could have knock on effects on India’s banks, especially if they are perceived to have governance issues.

BUZZING STOCKS

Shares of RBL Bank hit the lower circuit band of 10 per cent at Rs 258 on the BSE on Wednesday after the private sector bank posted its worst quarterly show for the July-September quarter (Q2FY20) since listing on August 31, 2016. The stock eventually settled 9.6 per cent lower. READ MORE

Infosys
slipped 4 per cent to Rs 615, but recovered later, on the BSE on Wednesday as sentiment continued to remain subdued due to window-dressing allegations by whistleblower groups. The share was little over 1 per cent higher at close. READ MORE

SBI Life Insurance Company today entered the coveted Rs 1 trillion market capitalisation (market-cap) club after its share price hit a fresh all-time high on the National Stock Exchange (NSE). The stock of the life insurance company hit a new high of Rs 1,012 on Wednesday in the intra-day deal. The closed 0.32 per cent lower. READ MORE

GLOBAL CUES

World stock markets fell on Wednesday, as hopes faded that a Brexit deal would be wrapped by next week. Japan's Nikkei index closed 0.34 per cent higher, South Korea's Kospi settled 0.39 per cent lower, and China's Shanghai Composite index ended 0.43 per cent lower.

(With Wire inputs)

3:40 PM IST

3:40 PM IST

3:39 PM IST The benchmark S&P BSE Sensex settled 95 points, or 0.24 per cent, higher at 39,059 level. 10 of the 30 shares listed on the index ended the day in the red. On NSE, the broader Nifty50 index closed at 11,604-mark, up 16 points or 0.14 per cent. 

3:30 PM IST -- Company has signed definitive agreements with Indinfravit on 1 July, 2019 to sell 100% stake in nine operational projects for an enterprise value of INR 66.1 bn (including equity value of INR 25.5 bn). Sales consideration of INR 25.5 bn shall split into units (10%  units of Indinfravit) and ~ 19 bn in cash. -- Additional upsides from car revenues from ARRIL, extension of concession period for AJTL andclaims from the transaction assets shall flow to SIPL.  

3:26 PM IST -- Piramal Ent likely to raise $750 million -- Canadian fund CDPQ could invest funds via Preferential issue -- Piramal Ent's promoters may participate via Rights issue to retain holding

3:17 PM IST -- Net profit at Rs 358.6 crore -- GNPA ratio at 7.2% vs 7.33% QoQ -- NNPA ratio at 3.54% vs 3.84% QoQ -- NII at Rs 1,863 crore

3:11 PM IST Dr Reddy's Laboratories Limited on Wednesday confirmed that it had initiated a voluntary nationwide recall of several lots of its ranitidine from the US market over confirmed contamination with N-Nitrosodimethylamine(MDMA) beyoond levels established by the US Food and Drug Administration (US FDA). READ MORE

2:58 PM IST The stock, which was trading at its highest level since its listing on August 8, 2019, has appreciated by 91 per cent as against the issue price of Rs 745 per share.   “The company has filed 4 new patent applications in Singapore in the areas of conversational marketing and vernacular and voice-based intelligence,” Affle (India) said in a regulatory filing on Tuesday after market hours.  READ MORE

2:42 PM IST For the second time in about as many years, the Indian icon synonymous with the country’s technological ascendancy is being forced to answer accusations of impropriety. In the most recent of a stream of grievances aired anonymously over past years, whistle-blowers accused Chief Executive Officer Salil Parekh of instigating employees to inflate profits, mis-represent the lucrativeness of deals, even of abusing travel privileges. In a memo reproduced in local newspapers, Parekh’s accusers offered emails and recordings to back up their claims. READ MORE

2:28 PM IST ICICI Securities has reported a one per cent rise in profit after tax (PAT) at Rs 135.12 crore for the September quarter. The company had posted a PAT of Rs 134.22 crore in July-September quarter of 2018-19, ICICI Securities said in a regulatory filing. The company. which is a part of the ICICI Group, posted a revenue of Rs 418.22 crore for the second quarter of 2019-20 as against Rs 458.10 crore in the year-ago quarter, down 9 per cent. The revenue fell mainly due to decline in retail broking revenues and regulatory changes in mutual funds distribution business. (Source: PTI)

LIVE UPDATES

Sectoral trends at NSE at close


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


Closing Bell

The benchmark S&P BSE Sensex settled 95 points, or 0.24 per cent, higher at 39,059 level. 10 of the 30 shares listed on the index ended the day in the red.

On NSE, the broader Nifty50 index closed at 11,604-mark, up 16 points or 0.14 per cent. 

NEWS ALERT | Sadhbhav Infra signs definitive agreements with Indinfravit to sell 100% stake in 9 operational projects: BSE filing

-- Company has signed definitive agreements with Indinfravit on 1 July, 2019 to sell 100% stake in nine operational projects for an enterprise value of INR 66.1 bn (including equity value of INR 25.5 bn). Sales consideration of INR 25.5 bn shall split into units (10%  units of Indinfravit) and ~ 19 bn in cash.

-- Additional upsides from car revenues from ARRIL, extension of concession period for AJTL andclaims from the transaction assets shall flow to SIPL.
 

NEWS ALERT | CDPQ in talks to raise stake in Piramal Ent: sources to CNBC TV18

-- Piramal Ent likely to raise $750 million

-- Canadian fund CDPQ could invest funds via Preferential issue

-- Piramal Ent's promoters may participate via Rights issue to retain holding

Earnings Alert | Indian Bank Q2 result

-- Net profit at Rs 358.6 crore

-- GNPA ratio at 7.2% vs 7.33% QoQ

-- NNPA ratio at 3.54% vs 3.84% QoQ

-- NII at Rs 1,863 crore

Dr Reddy's Laboratories recalls anti-ulcer drug ranitidine from US market

Dr Reddy's Laboratories Limited on Wednesday confirmed that it had initiated a voluntary nationwide recall of several lots of its ranitidine from the US market over confirmed contamination with N-Nitrosodimethylamine(MDMA) beyoond levels established by the US Food and Drug Administration (US FDA). READ MORE

Affle India soars 17% on filing 14 tech patents in Singapore, US

The stock, which was trading at its highest level since its listing on August 8, 2019, has appreciated by 91 per cent as against the issue price of Rs 745 per share.
 
“The company has filed 4 new patent applications in Singapore in the areas of conversational marketing and vernacular and voice-based intelligence,” Affle (India) said in a regulatory filing on Tuesday after market hours.  READ MORE

Yesterday once more: How the latest crisis is playing out at Infosys

For the second time in about as many years, the Indian icon synonymous with the country’s technological ascendancy is being forced to answer accusations of impropriety. In the most recent of a stream of grievances aired anonymously over past years, whistle-blowers accused Chief Executive Officer Salil Parekh of instigating employees to inflate profits, mis-represent the lucrativeness of deals, even of abusing travel privileges. In a memo reproduced in local newspapers, Parekh’s accusers offered emails and recordings to back up their claims. READ MORE

ALERT :: ICICI Securities Q2 PAT up 1% at Rs 135.12 crore

ICICI Securities has reported a one per cent rise in profit after tax (PAT) at Rs 135.12 crore for the September quarter. The company had posted a PAT of Rs 134.22 crore in July-September quarter of 2018-19, ICICI Securities said in a regulatory filing. The company. which is a part of the ICICI Group, posted a revenue of Rs 418.22 crore for the second quarter of 2019-20 as against Rs 458.10 crore in the year-ago quarter, down 9 per cent. The revenue fell mainly due to decline in retail broking revenues and regulatory changes in mutual funds distribution business.

(Source: PTI)

PSU banks gained ground in trade today


HDFC Securities on ICICI Pru Life

We like IPRU’s re-engineered business model which is focused on a more diversified product mix along with an increased protection share. We expect VNB to grow at FY19-22E CAGR of 17.5%. Lower than expected growth and lower protection share remain key risks. We rate IPRU a NEUTRAL with an unchanged target price of Rs 445 (Sep-20E EV + 19.2x Sep-21E VNB).

Motilal Oswal on Oberoi Realty

2QFY20 was operationally weak on account of the subdued economic environment; however, OBER’s new launch pipeline in 2HFY20 provides comfort. We have cut our sales volume estimate for FY20/FY21E by 25%/16% to 1.2msf/1.6msf due to delayed launch of Exquisite III and the Thane project, which impacts our NAV calculation. However, anticipated tax benefit offsets the downside and we arrive at a TP of INR630. Maintain Buy.

Anand Rathi on Sasken Technologies

.Given the weak Q2, we lower our FY20e and FY21e respectively ~7% and 6%. The stock trades at 10x FY21e EPS and its sound cash position restricts a downside. On a positive note, client concentration on the top-5 has come down from 50% in Q1 to 41% in Q2. The earnings are clearly depressed as growth is elusive and Sasken needs to find a way to convert its engineering capability into scaled-up accounts. We have a target PE of 17x (unchanged) on FY21e EPS, reflecting optimism on the ability to generate growth, and lower our target to `960. Risk: Client-specific issues

HDFC Securities on Jubilant FoodWorks

We foresee enough levers of growth in Domino’s like (a) Splitting urban stores (margin accretive), (b) Menu expansion (pizza variants and in-house beverages), (c) Shorter delivery time (20min live in few stores), (d) Reimaging stores to combat slowdown in dine-in and (e) Loyalty program (winning strategy in Domino’s US). Additionally, JFL is aspiring to grow non-linearly driven by its investments in technology, core team and creating more brands under JFL umbrella.

GLOBAL MARKET UPDATE

European shares dipped for the first time this week on Wednesday, as warnings from Texas Instruments raised concerns about the global microchip industry, while UK lawmakers hit the pause button on Britain's exit from the European Union. European tech stocks were set for their worst day in two weeks, dragged down by chipmakers Infineon, Dialog and STMicroelectronics, as sector proxy Texas Instruments forecast a 10%-17% drop in current-quarter revenue. The pan-European STOXX 600 index fell 0.1% as the Brexit saga hit another snag after British lawmakers rejected Prime Minister Boris Johnson's timetable.

Indian Bank surges 9%


Earnings Alert | HDFC Life Q2 result

--Net Premium Income up 10% YoY at Rs 7,453.7 crore

-- Net profit up 7.6% YoY at Rs 308.7 crore

Outlook for Gold in Samvat 2076

We expect that positive momentum for gold could continue further, but the pace of rally could get measured as uncertainties related to trade war is taking back seat. Brexit related uncertainty could take a pause as the deadline could be extended to January 2020. But we are of the view that this slowdown in major economies could push central banks to remain dovish for an extended period and that could continue to support gold prices.

Elevated prices will remain a point of concern, but with a fair monsoon and festive season approaching it will be important to see the movement in domestic gold prices. India has also added gold to its reserves and with a dovish outlook on the economy gold could continue to outperform. We expect that ease off in trade war could lead to some correction in prices, but until ₹35,500 is held, we remain bullish and expect it move higher to test previous highs of ₹39,500 followed by ₹41,500 over the next 12 months

(Source: Report by Kishore Narne, Head- Commodities & Currency, Motilal Oswal Financial Services)


Investment via P-Notes dips for 4th consecutive month

Dropping for the fourth consecutive month, investments through participatory notes (P-notes) in the Indian capital market stood at Rs 76,611 crore at the end of September. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly after going through a due diligence process. Investments through P-notes have been continuously declining since June, according to the latest data from markets regulator Sebi.

NEWS ALERT | Dr. Reddy’s receives Establishment Inspection Report from US FDA: BSE filing

-- Receives EIR from US FDA for Louisiana unit in the US

-- EIR indicates closure of inspection & unit is determined as No Action Indicated

NEWS ALERT | Centre mulls revision of Draft Industrial Policy: sources to CNBC TV18

-- Policy to be reviewed by DPIIT secy-led panel on Oct 24

-- Tweak public procurement process to promote 'Make In India'

-- Design a framework to promote 'Ease of Doing Business'

-- Target $1 trillion in gross value addition in manufacturing by 2025

SBI Life Insurance joins Rs 1-trillion m- cap club, stock hits record high

SBI Life Insurance Company today entered the coveted Rs 1 trillion market capitalisation (market-cap) club after its share price hit a fresh all-time high on the National Stock Exchange (NSE). The stock of the life insurance company hit a new high of Rs 1,012 on Wednesday in the intra-day deal.
 
Following the uptick in the counter, SBI Life’s market cap crossed Rs 1-trillion mark or Rs 1,01,200 crore in intra-day trade today. READ MORE

Earnings Alert | Bajaj Auto Q2 results

-- Net profit at Rs 1,402.4 crore

-- Revenue at Rs 7,707.3 crore

-- Ebitda at Rs 1,278 crore

-- Margin at 16.6%

Avenue Supermarts, EIH: 10 stocks to buy in Muhurat trading for Samvat 2076

Kansai Nerolac Paints Ltd (KANSAINER): This counter has passed the resistance of Rs 545 – a level it has been struggling to cross since the past one year. On a bigger scale, Kansai Nerolac is showing stability above Rs 500 levels. The positive trend should take this counter to Rs 600 levels. The support comes in around Rs 510.  READ MORE

ICICI Securities surges 10% to hit 52-week high post Q2 results

Shares of ICICI Securities hit a 52-week high of Rs 314, up 10 per cent on the BSE on Wednesday, after the company reported a consolidated net profit of Rs 135 crore in September quarter (Q2FY20), up 1 per cent as against the corresponding period last year. The stock surpassed its previous high of Rs 310 recorded on September 24, 2019.
 
The company’s consolidated revenue declined 9 per cent to Rs 418 crore in Q2FY20, compared to a revenue of Rs 458 crore in Q2FY19 due to decline in retail broking revenues and regulatory changes in mutual funds distribution business. READ MORE

Shapoorji eyes tie-up with IFC, HDFC Capital Advisors for low-cost housing

Shapoorji Pallonji Real Estate is in talks with HDFC Capital Advisors, the real estate fund management arm of HDFC, and International Finance Corporation (IFC) separately, to float a platform to invest and develop low-cost homes across the country, sources in the know said. They plan to build homes in the Rs 10 lakh to Rs 20 lakh category on the peripheries of large and tier II cities, such as Jaipur and Indore, among others. READ MORE

Aavas Financiers, HDFC AMC: Stocks that doubled your money in Samvat 2075

Consider this. Among the top 10 gainers in the S&P BSE500 index, five companies are from the financial sector. This comes at a time when the sentiment was impacted by the liquidity situation triggered by crisis in companies like IL&FS, Dewan Housing Finance Limited (DHFL). Yet fundamentally sound companies delivered. READ MORE HERE

Market check


Jubilant FoodWorks rallies 12% in two days on better-than-expected Q2 nos

The company, the master franchisee of Domino’s Pizza and Dunkin’ Donuts in India, reported a better-than-expected 12 per cent year on year (YoY) growth in net sales at Rs 988 crore in Q2FY20. Analysts on an average expected net sales at Rs 964 crore for the quarter.
 
Net profit, however, declined 2.2 per cent YoY during the quarter at Rs 76 crore due to one-time expense on account of provisioning for investments made by Jubilant FoodWorks Employee Provident Fund Trust in corporate bonds of stressed firms such as Dewan Housing Finance Corporation (DHFL), Reliance Capital & IL&FS. READ MORE

Infosys bounces back 6% from day's low on heavy volumes

Shares of Infosys slipped 4 per cent to Rs 615, but recovered later, on the BSE on Wednesday as sentiment continued to remain subdued due to window-dressing allegations by whistleblower groups.
 
At 10:30 am, the stock was trading 1.3 per cent higher at Rs 651 per share. In comparison, the S&P BSE Sensex was ruling 0.42 per cent higher. The stock bounced back 6 per cent from day's lows and touched an intra-day high of Rs 655.35 apiece. Trading volumes more than doubled on the counter in the intra-day deals. READ MORE

Samvat 2076 will be an opportunity for investors to find hidden gems

Whenever we go back in history to identify defining moments, we normally tend to ignore the immediate consequences of such events and focus only on the long-term impact of the same. However, when you are in the midst of the aftermath, you are bound to get overwhelmed and affected. In addition to demonetisation and the impact of good and services tax (GST), the recent defining moment was the fall of the infallible IL&FS and the resulting trust deficit that engulfed the financial markets, leading to disastrous consequences. READ MORE

CEAT trades lower post Q2 nos


RBL Bank tanks 20%, hits life-time low as net profit dips 74% in Q2

Shares of RBL Bank tanked 20 per cent to Rs 231, its fresh life-time, low on the BSE on Wednesday after the private sector bank posted its worst quarterly show for the July-September quarter (Q2FY20) since listing on August 31, 2016. The stock fell below its previous low of Rs 242 touched on October 15. The stock was trading close to its issue price of Rs 225 per share. READ MORE

IDBI Capital on Axis Bank

Management has proactively highlighted stress in some specific sectors which possess risk of slipping into NPLs over the next few quarters. Thus, conservatively we have raised our slippage expectation for FY20 along with keeping out loan growth moderate for FY20.

Post near-term stress taking shape, we expect the book to normalize and improve thereon. Domestic credit growth across segments continues to see a revival along with decent traction in retail term deposits. Hence we structurally remain positive on the bank to garner its incremental book, improvement in margins and bring down its credit cost near to its long-period average (110-115bps) by end-FY21

Diwali Picks :: Motilal Oswal Securities

Large-caps: ICICI Bank, SBI, HDFC, Bharti Airtel, L&T, HUL, Titan.
 
Mid-caps: Indian Hotels, MMFS, Ashok Leyland, ABFRL, JK Cement, Colgate, Petronet LNG, PI Industries.
 
Contra Ideas: Coal India, Motherson Sumi, Page Industries, LIC Housing Finance, Birla Corp.

ICICI Securities on HDFC Bank

Given the general economic slowdown, near term pressure is evident. However, considering the focus on balance sheet growth maintaining superior asset quality, the bank is well poised to deliver consistently with margin leadership & robust return ratios. The bank remains a portfolio stock with premium valuations. Accordingly, we maintain our BUY rating with a revised target price of Rs 1440 valuing bank at ~24x FY21E EPS (3.9x FY21E ABV) and include | 75 per share for HDB Financial Services.

Geojit on RBL Bank

Despite registering a strong performance in the current quarter, the company expects NPA to elevate over the next two to three quarters. This would increase credit cost by 35–40bps. Hence, we value the bank at P/BV of 2.1x for FY21E and revise our rating to HOLD with an updated target price of Rs 494

IIFL on ICICI Lombard General

Changing regulations, improving competitive dynamics and a conservative strategy (which prefers profitability over growth by avoiding businesses such as crop) provide strong earnings visibility, in our view. Hence, we forecast GDPI/EPS Cagr of 11%/35% over FY19-21ii. We expect ~740bps improvement in RoE, to 28.7% by FY21ii (7.6x P/B). Reiterate BUY.

IIFL on HDFC Bank

HDFC Bank’s headline performance in 2QFY20 was strong, with healthy loan growth, sharp increase in core fee income, moderation in cost/income ratio and contained loan loss provisions driving a 2.2% beat to IIFLe at the PBT level. Management commentary on asset quality was also positive.

On the other hand, the rapid growth in term deposits and extra liquidity is exerting pressure on NIM, the core fee income growth looks too sharp to sustain and core cost/income ratio (ex-trading gains, dividend, and recoveries) has been flat on a QoQ/YoY basis. Given the current operating environment, we would rate the performance above-average. Maintain BUY.

CLSA on RIL

Driven by a lower standalone tax rate and higher retail profits, we raise EPS estimates 3-4%. Aligning Jio’s multiple to an increase in CLSA’s target multiple for Bharti (9x from 8.5x Ev/Ebitda) and rollover to Sep-20 takes our target to Rs1,710 from Rs1,530. Management guided on petcoke gasification achieving full utilisation by early 2020.

Fibre InvIT stake sale, Aramco deal closure, IMO gains, launch of a New Commerce model in retail and subs ramp-up in fixed-line business are other 12-month triggers even as Jio’s subs growth remains strong and deleveraging continues. BUY.

Jefferies on telecom sector

Jio announced bundled packs with outgoing mins. The flagship 444 plan offers 2GB/day for 84 days and 1,000 offnet mins and should drive upgrades from the current 1.5GB/day 399 plan as it is better value than IUC vouchers, though the ARPU uplift would be lower (11%). Whether this endures, unlike the IUC vouchers, which won’t, will depend on customer upgrade behavior. For now, this precludes us from a constructive sector view. Stay with underperform rating on Airtel, Idea and RIL

Prabhudas Lilladher on L&T Finance Holdings

We build-in asset quality deterioration (avg 6.4% NPA/200bps+ credit cost) and subdued growth (16%) translating into structurally lower RoEs of ~14% over FY20-22. We reiterate HOLD rating on the stock with revised target prove of Rs 88 implying 0.9x PABV multiple as we rollover estimates to Sep’21.      

Nifty Bank slips in the red


Ujjivan Financial Services dips 1%


Axis Bank trades flat


Infosys trades lower


RBL Bank tanks 10% post Q2 nos


Sectoral trends at NSE during opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Opening Bell

The S&P BSE Sensex was trading 38,960 levels in the early deals, while the Nifty50 was hovering around 11,580-mark.
 

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/$ vs Tuesday's close of Rs 70.94/$

Stocks to watch: Infosys, Axis Bank, DHFL, Siemens, SBI Life, SpiceJet

Here's a list of top stocks that may remain in focus today:
 
Infosys: US-based Rosen Law Firm has said it is preparing a class action lawsuit to recover losses suffered by investors in the wake of allegations of "unethical practices" at the IT major.
 
Earnings today: About 78 companies, including Bajaj Auto, Biocon, HCL Tech, and Hero MotoCorp are slated to report their Q2FY20 earnings later in the day.
 
Ujjivan Financial Services: Subsidiary company Ujjivan Small Finance Bank has received market regulator Sebi's nod to raise Rs 1,200 crore via an initial public offer (IPO). READ MORE

Economy could grow at over 6% in 2019-20: CEA Krishnamurthy Subramanian

The economy could grow at 6-6.5 per cent this fiscal year (2019-20 or FY20), said Chief Economic Advisor Krishnamurthy Subramanian, revising his earlier estimate of 7 per cent in the Economic Survey. In an interaction with Arup Roychoudhury, he said supply-side measures, including corporation tax cuts, will boost consumption and demand, and non-tax revenue may make up for shortfall in tax revenues. READ FULL INTERVIEW HERE
CEA Krishnamurthy Subramanian

DHFL crisis set to linger on as forensic audit points to fund diversion

The third-largest mortgage lender had sought a Rs 15,000-crore lifeline from the lenders as they finalise the resolution plan, which may also include picking up 51 per cent equity in the company by converting their debt into equity.
 
KPMG, which has carried out the forensic audit, has submitted a draft report to the lenders, which has reportedly found that the DHFL promoters had diverted nearly Rs 20,000 crore of bank loans to its related entities. READ MORE

L&T's tech twins show contrasting fortunes; LTTS falls 10%, LTI gains 7%

The September quarter (Q2) results and outlook for L&T’s IT twins — L&T Infotech (LTI) and L&T Technology Services (LTTS) — were in contrast, and so was the market reaction. While LTI indicated that the second half would be strong, LTTS cut its growth guidance for the current financial year.
 
The cut in guidance did not go down well with the Street, which led to the LTTS stock shedding 10.45 per cent on Tuesday. On the other hand, LTI has gained about 7.5 per cent over the last couple of sessions. READ MORE

Sebi moves Supreme Court against SAT's order in Price Waterhouse case

The Securities and Exchange Board of India (Sebi) has appealed in the Supreme Court against the Securities Appellate Tribunal (SAT) order in the Price Waterhouse (PW) case. On September 9, the tribunal had quashed the order passed by the regulator against the global audit firm for its role in the Satyam scandal.
 
Many believe the SAT order has cast doubt over Sebi’s regulatory turf and whether it has the power to impose strictures against auditors, who are regulated by the ICAI. READ MORE

DPIIT plans to make single window system to handhold foreign investors

The Department for Promotion of Industry and Internal Trade (DPIIT) is planning to set up a single window system to handhold foreign investors keen to invest in India, an official said.
 
The single-window system is likely to have representatives from both the Centre and state governments, the official said. READ MORE

Allegations to remain pain point for Infosys stock in near term: Brokerages

Brokerages are not reading too much into whistle-blower allegations of Infosys’ lower margins on large deals and higher unbilled revenue. Whistle-blowers have alleged the CEO and CFO indulged in unethical practices on recent deal wins with negligible margins.
 
Further, revenue and cost recognition have not adhered to accounting norms and have been done to improve short-term profitability. Girish Pai and Seema Nayak at Nirmal Bang believe low profitability in large deals in the initial phase is a standard. READ MORE

Infosys freefall hits mutual funds; FPIs lose over Rs 17,000 crore

The 16.2 per cent single-day crash in shares of Infosys has dealt heavy mark-to-market losses to mutual funds (MFs) and foreign portfolio investors (FPIs). MFs have seen value of their holdings in Infosys erode over Rs 6,891 crore, while value of FPIs holdings has shrunk by over Rs 17,772 crore.
 
"As Infosys is a Nifty stock, the company is widely held in several equity schemes," said a fund manager. According to industry estimates, the stock is held in over 400 MF schemes. READ MORE

India's MSCI EM weight set to rise with inclusion of three stocks in index

India's weightage in the MSCI EM index is set to rise thanks to the possibility of addition of as much as three domestic stocks in the index. In a note on Tuesday, Morgan Stanley said SBI Life Insurance, ICICI Prudential Life and Siemens India are key inclusion candidates in the upcoming review. READ MORE HERE

Bulk deals on BSE as on Tuesday

Bulk deals on NSE as on Tuesday

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


Rupee Check

Source: Bloomberg


Oil Check

At 7:55 am, Brent Crude Futures were at $59.41 per barrel mark

SGX Nifty

At 7:50 am, the Singaporean Exchange for Nifty Futures was trading 0.5 points lower at 11,617.5 level.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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