MARKET WRAP: Sensex gains 582 pts, Nifty ends at 11,787; Tata Motors up 16%

Solid buying in counters such as auto, banks, and metals helped benchmark indices settle with around 1.50 per cent gains on Tuesday. Investor sentiment got a major boost on better-than-expected September quarter results of companies such as Tata Motors, ITC, and State Bank of India (SBI). That apart, news reports that the government may scrap dividend distribution tax (DDT) also cheered market participants. Besides, optimism around US-China trade deal, too, aided the bulls. 

The S&P BSE Sensex added 582 points or 1.48 per cent to end the session at 39,832 levels, with Tata Motors (up over 16 per cent) being the top gainer and Bharti Airtel (down over 3 per cent) the biggest loser. The index reclaimed the crucial 39,800 level for the first time since July 5. Out of 30 components, 26 ended in the green and rest 4 in the red. RIL, TCS, Axis Bank and Tata Motors contributed the most to the Sensex's gains while Bhari Airtel, SBI, and Power Grid emerged as the biggest drags.

Market breadth was in favour of advances as out of 2,677 companies traded on the BSE, 1,439 advanced and 1,027 declined while 211 remained unchanged. 

On the NSE, the benchmark Nifty50 index settled at 11,786.85, up 160 points or 1.37 per cent. 

Both the frontline indices rose to over four-month high.  

Volatility index India VIX jumped nearly 5 per cent to 16.35 levels. 

On the sectoral front, barring media stocks, all the indices on the NSE ended in the green. Nifty Auto index gained the most - up 4.29 per cent to 8,450. 

In the broader market, the S&P BSE MidCap gained 161 points or over 1 per cent to end at 14,603 while the S&P BSE SmallCap ended at 13,384, up 73 points or 0.55 per cent. 

BUZZING STOCKS

Among individual stocks, HUL, ICICI Bank, and Reliance Industries (RIL) hit record highs during the session. 

Shares of Tata Motors jumped nearly 17 per cent to Rs 172.55 on the BSE on better-than-expected Q2 results. The auto major had settled over 16 per cent higher during the one-hour Muhurat Trading session on Sunday, that marked the beginning of new Samvat year - 2076. In the two trading sessions, the stock has jumped 36 per cent. 

Shares of Bharti Airtel slipped up to 4 per cent in the opening deals on Tuesday after the company deferred its September quarter results till November 14 saying it needed more clarity on adjusted gross revenue (AGR) matter. The company was slated to release its financial results today. The stock settled at Rs 360, down nearly 3.50 per cent. 

Metal stocks such as Tata Steel, Jindal Steel, SAIL and JSW Steel advanced up to 9.5 per cent on the NSE  on reports government could allow integrated steel producers to divert a portion of iron ore from their captive mines for use by other joint venture entities. That apart, optimism around US-China trade deal also boosted investor sentiment.

GLOBAL MARKETS 

Asian shares crept to a three-month peak on Tuesday after Wall Street hit all-time highs amid hopes of progress in Sino-US trade talks and for another dose of policy stimulus from the Federal Reserve this week. Japan's Nikkei led the way with a rise of 0.4 per cent to reach ground last trod a full year ago, while Shanghai blue chips dithered either side of flat.

MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.2 per cent and touched its highest since late July. E-Mini futures for the S&P 500 extended their gains by 0.1 per cent and EUROSTOXX 50 futures dipped 0.1 per cent.

In commodities, oil prices edged lower ahead of US stockpile numbers. Brent futures were down 6 cents at $61.51 a barrel, having fallen 0.7 per cent on Monday. US West Texas Intermediate (WTI) crude was down 12 cents at $55.69, after falling 1.5 per cent in the previous session.

(With inputs from Reuters)


4:01 PM IST "A strong momentum is seen in the market as healthy Q2 earnings from big corporate and attractive valuation for mid & small caps is providing a favorable risk-reward to investors. This positivity is likely to stay in the short to medium term as concerns of the market are fading with tax cut and govt’s intention to come out with more reforms in direct & indirect taxation. The clouds over global market is gradually settling down with developments in trade deal and Brexit, while rate cut expectation from FED will further add impetus to emerging markets like India."

3:59 PM IST

3:58 PM IST

3:38 PM IST The S&P BSE Sensex rallied 582 points or 1.48 per cent to end at 39,832 while NSE's Nifty50 index ended at 11,787, up 160 points or 1.37 per cent.

3:25 PM IST Days after the Supreme Court ordered telecom companies to pay as much as Rs 1.42 trillion in past statutory dues, the government is constituting a Committee of Secretaries (CoS) under the Cabinet Secretary to suggest measures to mitigate financial stress in the sector. READ MORE 

3:24 PM IST

3:06 PM IST Marico disappointed on volume growth owing to rural slowdown. Hair oil category growth was sluggish in 2Q. Copra deflation and international performance drove healthy EBITDA growth. We recently downgraded Marico to NEUTRAL as RM tailwinds are expected to moderate and near-term positives were priced-in. We value Marico at 35x on Sep-21 EPS arriving at a TP of Rs 391.

3:03 PM IST

2:53 PM IST A bonanza is in the offing for the stock markets as the Prime Minister's Office (PMO) and the Finance Ministry are working on measures which may include dividend distribution tax (DDT) being scrapped. In this regard, the Department of Economic Affairs (DEA) and Revenue Department officials in the Finance Ministry have held meetings with PMO officials, the news agency reported. 

2:46 PM IST

2:43 PM IST Tata Sons, the promoter of major operating companies of the Tata Group, will increase its shareholding in Tata Motors to 43.73 per cent after the proposed Rs 6,500 crore preferential issue by the automobile manufacturer.   Last week, Tata Motors' board had approved raising of Rs 6,500 crore via preferential allotment of securities to Tata Sons. READ MORE

2:37 PM IST -- Telcos have made case w.r.t future spectrum payment, viable pricing of data/voice, financial stress -- SC verdict will enhance stress in sector

LIVE UPDATES

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

"A strong momentum is seen in the market as healthy Q2 earnings from big corporate and attractive valuation for mid & small caps is providing a favorable risk-reward to investors. This positivity is likely to stay in the short to medium term as concerns of the market are fading with tax cut and govt’s intention to come out with more reforms in direct & indirect taxation. The clouds over global market is gradually settling down with developments in trade deal and Brexit, while rate cut expectation from FED will further add impetus to emerging markets like India."

Sectoral gainers and losers on the NSE


Top gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex rallied 582 points or 1.48 per cent to end at 39,832 while NSE's Nifty50 index ended at 11,787, up 160 points or 1.37 per cent.

Govt forms secretaries' panel on steps to ease financial stress in telecom

Days after the Supreme Court ordered telecom companies to pay as much as Rs 1.42 trillion in past statutory dues, the government is constituting a Committee of Secretaries (CoS) under the Cabinet Secretary to suggest measures to mitigate financial stress in the sector. READ MORE 

MARKET CHECK


BROKERAGE RADAR | HDFC Securities on Marico

Marico disappointed on volume growth owing to rural slowdown. Hair oil category growth was sluggish in 2Q. Copra deflation and international performance drove healthy EBITDA growth. We recently downgraded Marico to NEUTRAL as RM tailwinds are expected to moderate and near-term positives were priced-in. We value Marico at 35x on Sep-21 EPS arriving at a TP of Rs 391.

MRKET CHECK | Top 5 losers on the BSE at present


Dividend distribution tax could be scrapped, reports IANS

A bonanza is in the offing for the stock markets as the Prime Minister's Office (PMO) and the Finance Ministry are working on measures which may include dividend distribution tax (DDT) being scrapped. In this regard, the Department of Economic Affairs (DEA) and Revenue Department officials in the Finance Ministry have held meetings with PMO officials, the news agency reported. 

NEWS ALERT | Trial court approves settlement agreement for Welspun India w.r.t pending claims in the US


Tata Sons stake in Tata Motors to rise to 43.73% post preferential issue

Tata Sons, the promoter of major operating companies of the Tata Group, will increase its shareholding in Tata Motors to 43.73 per cent after the proposed Rs 6,500 crore preferential issue by the automobile manufacturer.
 
Last week, Tata Motors' board had approved raising of Rs 6,500 crore via preferential allotment of securities to Tata Sons. READ MORE

NEWS ALERT | AGR verdict: Committee of Secy to suggest measures to mitigate financial stress by Telcos: sources to CNBC TV18

-- Telcos have made case w.r.t future spectrum payment, viable pricing of data/voice, financial stress

-- SC verdict will enhance stress in sector

Govt likely to order SFIO probe into financial irregularities at DHFL

The Registrar of Companies, Mumbai office, has submitted its report on Dewan Housing Finance Corporation (DHFL) to the Ministry of Corporate Affairs a couple of days ago, an official said. READ MORE 

Sector watch | Nifty Auto index trades near day's high


Buzzing | Vodafone Idea extends decline


NEWS ALERT | Thomas Cook India CMD Madhavan Menon resigns from Quess Corp board: BSE Filing

-- Tenders resignation with immediate effect

-- Resigned following Mumbai NCLT's nod for merger of TMI, Quess Corp

NEWS ALERT | Tata Motors Conference Call

-- Co maintains guidance of 3-4% EBIT margin in FY20-21
 
-- Management confident about remaining profitable in H2FY20 

-- Co says, see gradual improvement in China volumes 

-- To see 500 million pounds benefits in H2FY20 due to cost cutting project charge

(As reported by CNBC TV18)

Coal supply crunch may spoil govt's dream of $5-trillion economy by 2024

Coal supply could play a dampener both for the power sector and the industry at a time when the government is targeting double-digit growth and a $5-trillion economy. While the power demand is rising with enhanced electricity connectivity and improving supply metrics, domestic coal supply continues to remain laggard as several states and power generators are depending on imported coal. READ MORE 

Tata Steel, NMDC gain up to 9% on reports Govt may ease captive mine rules

Metal stocks such as Tata Steel, Jindal Steel, SAIL and JSW Steel advanced up to 9.5 per cent on the NSE on Tuesday on reports government could allow integrated steel producers to divert a portion of iron ore from their captive mines for use by other joint venture entities. That apart, optimism around US-China trade deal also boosted investor sentiment. READ MORE

BUZZING STOCK | RBL Bank jumps over 7%


Nifty hits 11,800 for the first time since July 5


Sensex above 39,800 for the first time since July 5


MARKET CHECK | RIL hits new high


EXPERT VIEW | Commentary on Gold by LKP Securities

"Gold can be seen in the range of Rs 37,500 – Rs 38,400 for the coming days, whereas on the global front, it will be seen in range of $1480-1510. We expect some sideways days ahead for Bullion but US Fed’s interest rate decision (probably dovish decision) shall provide positive impetus going ahead," says Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities. 

BROKERAGE RADAR | ICICI Securities on State Bank of India

The management continues to be confident that balance sheet has been improving and has guided for a strong recovery ahead with RoA target of 0.5 per cent in FY20E. We raise provisions for NPA and build in DTA tax adjustment of ~ Rs 3,000 crore impacting FY20E earnings. A gradual pick-up in credit off-take coupled with healthy operational matrix augurs well for future earnings. A recovery from large NCLT account and stake sale in subsidiaries is expected to unlock valuation. We maintain our target price at Rs 400, valuing at 1.5x FY21E ABV. We maintain BUY recommendation.

NEWS ALERT | ROC Mumbai submits report on fund diversion by DHFL: Corp Affairs Min official

-- Notes serious issue of corporate law violations

(As reported by CNBC TV18 quoting Agencies)

Market check


Market check | Nifty Mid-cap100 index trading at 1-month high


NEWS ALERT | Saudi Aramco targeting to kick off planned IPO on Nov 3: Sources to Reuters

-- The state oil giant working is towards an announcement for the proposed float this Sunday

Buzzing | Indiabulls Housing Finance surges over 18%


NEWS ALERT | Proposed NMDC Nagarnar Steel Plant demerger unlikely this year: CNBC TV18 via Agencies

-- Govt official quoted as saying, demerger could take 7 months

India, Saudi Arabia inching towards closer strategic ties: PM Modi

India and Saudi Arabia are moving from a purely buyer-seller relationship towards a closer strategic partnership that will include the resource-rich Kingdom's investments in downstream oil and gas projects in the country, Prime Minister Narendra Modi has said.
 
Saudi Arabia is its second-biggest supplier after Iraq. It sold 40.33 million tonnes of crude oil to India in FY19, when the country had imported 207.3 million tonnes of oil. READ MORE

BUZZING STOCK | Arvind jumps 10%


MARKET CHECK | Top 5 gainers on the BSE at present


IndiGo dips 5% as DGCA warns of action post 3 cases of in-flight shut-downs

InterGlobe Aviation-run IndiGo airlines slipped for the third consecutive day, down 5 per cent on the BSE on Tuesday, after industry regulator Directorate General of Civil Aviation (DGCA) instructed the airline to change engines on 16 of its Airbus A320neos, following three instances of in-flight engine shut-downs. The regulator has warned the airline the aircraft would have to be grounded if the changes are not completed in the next 15 days. READ MORE

BROKERAGE RADAR | Dolat Analysis & Research Themes (DART) on Castrol India

Castrol India has been continuously working on protecting margins with sustainable growth. Given the under performance of the stock price for a prolonged period, CSTRL business performance in the next two quarters will be crucial for the long term stock outlook. Recommend Accumulate, with a target price of Rs 172, to trade at 19x CY20 EPS.

NEWS ALERT | Strategic p'ship with Saudi to include Saudi investment in downstream oil projects: PM Modi

-- Lookign forward to Aramco's participation in India's strategic petro reserves 

(As reported by CNBC TV18)

Market check | Sensex trades near 4-month high


BROKERAGE RADAR | MOFSL on SBI

SBIN reported a moderation in slippages across segments (after elevated slippages in 1Q), while it prudently used the gain from the stake sale in SBI Life to create higher provisions. The bank carries sufficient provisions to cushion earnings; however, given the macro slowdown and the limited visibility on the resolution of large stressed accounts, we expect credit cost to stay elevated over the near term. Margins have improved but appear to have peaked out as monetary easing continues exerting pressure on incremental yields. We fine tune our earnings and estimate SBIN to deliver PAT of Rs 199b/Rs 296b in FY20/21 (+1.3%/2.6%). Maintain Buy with a target price of Rs 350 (1.1x FY21E ABV for the bank).
 

BROKERAGE RADAR | HDFC Securities on ICICI Bank

We continue to like to the structural change in the bank’s B/S (increasing retailisation) and P&L fortification (better margins, lower LLPs due to better coverage). These trends appear sustainable and are likely to persist over the medium term. Our estimates did factor a slight increase in stress in the near term, hence they have not changed significantly. Limited exposure to known stressed names gives us some comfort and we believe the worst in terms of asset quality is long past ICICIBC. Maintain BUY with an SOTP of Rs 510 (2.0x Sept-21E core ABV of Rs 193 and sub-value of Rs 125).

Steelmakers face debt challenges amid falling prices, slowing consumption

India's biggest steelmakers may be suffering from buyer's remorse as assets they bought from bankrupt rivals stretch their bottom lines while market conditions have worsened. Less than 18 months after scooping up these distressed assets in the hopes of extracting value and boosting market share, the steelmakers are struggling to meet sales and production targets because of a slowdown in the key construction and auto sectors. READ MORE 


MARKET CHECK | Nifty tops 11,700


Market check


Marico declines 7% as consumption slowdown hits domestic biz in Q2

Shares of Marico slipped up to 7.3 per cent to Rs 362.35 on the BSE on Tuesday on tepid growth in the September quarter of FY20. Despite a 17 per cent rise in the net profit, weakness in the domestic business dented sentiment.
 
The fast moving consumer goods (FMCG)-major reported a 3 per cent year-on-year (YoY) decline in the domestic business turnover at Rs 1,398 crore due to "an accelerated slowdown in consumption". READ MORE

Market check | Nifty50 reclaims 11,700 after 4 sessions


Tata Motors extends rally on encouraging Q2 results, jumps 34% in 2 days

On Friday, Tata Motors reported a better-than-expected earnings for the September quarter, with improvement in the operational performance at Jaguar Land Rover, its Britain-based luxury vehicle arm. Net loss at the consolidated entity narrowed to Rs 216.6 crore in the three months to September, from Rs 1,048.8 crore in the same period a year before. READ MORE 

Market check | Sensex near day's high


Bharti Airtel slips 4% as it defers September quarter results on AGR matter

Shares of Bharti Airtel slipped up to 4 per cent in the opening deals on Tuesday after the company deferred its September quarter results till November 14 saying it needed more clarity on adjusted gross revenue (AGR) matter. The company was slated to release its financial results today. READ MORE 


Market check


BROKERAGE RADAR | ICICI Securities on Astral Poly Technik

We model revenue, earning CAGR of ~22%, ~35%, respectively, in FY19-21E led by volume growth, recovery in EBITDA margin. Though we believe in strong fundamentals of APTL coupled with intact demand outlook (led by government push on housing & infra sectors), the current price discounts all near term positives. We maintain HOLD rating on the stock.

Momentum Picks by ICICI Securities


Top 5 losers on the BSE at present


RESULTS IMPACT | Pfizer gains over 4.50% after Q2 results


Bharti Airtel slips 3% as it defers Q2 results


BUZZING STOCK | Tata Motors jumps 10%


Sectoral gainers and losers on the NSE


Top gainers and losers on the S&P BSE Sensex


OPENING DEALS

At 09:17 am, the S&P BSE Sensex was trading 42 points or 0.11 per cent higher at 39,293 levels while NSE's Nifty50 index was ruling at 11,637, up 10 points or 0.09 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 higher at 70.72/$ vs Friday's close of Rs 70.88/$

-- Trades at 1-month high

NEWS ALERT | Adani Enterprises partners with US-based digital Realty for digital solutions: BSE filing

-- Partners with San Fransisco-based co to jointly evaluate developing & operating data centers, data center parks & cultivating undersea cable provider communities of interest across India

Oil falls on weak Chinese data, forecasts for US crude stocks build

Oil prices fell on Monday after four days of gains as expectations US crude stockpiles will rise and worries about weak Chinese industrial data offset hopes oil demand will increase if talks progress on a Sino-American trade deal.
 
Brent futures fell 45 cents, or 0.7%, to $61.57 a barrel, while US West Texas Intermediate (WTI) crude fell 85 cents, or 1.5%, to $55.81. READ MORE

Gold rush ahead? Price may surge to Rs 42,000 by Dec-end, say analysts

Geo-political uncertainties, sustained central bank buying and the rupee’s weakness against US dollar will keep gold under pressure and are likely to push the prices up to Rs 42,000 per 10 grams level by the end this year, according to analysts.
 
"Geo-political uncertainties emerging from the Middle East may continue to underpin gold prices going ahead to $1,650 an ounce in Comex markets and Rs 42,000 in MCX," Commtrendz Research co-founder and CEO Gnansekar Thiagarajan told PTI here. READ MORE

Whistleblower case: Infosys writes to clients as allegations reveal dissent

Infosys has written to clients, apprising them of the developing situation on whistle-blower allegations and subsequent investigations by the company and regulators, said sources in the company.
 
Analysts said the relationship of the Bengaluru-headquartered information technology (IT) major with its clients was unlikely to be affected by the recent developments, but the complaints of the whistle-blowers reflected internal dissent in the company. READ MORE

NEWS ALERT | Bharti Airtel defers Q2FY20 results to Nov 14: BSE filing

-- Co says, need more clarity on AGR verdict

-- The Company is approaching DoT to seek clarity on the total amounts involved and request for their support to deal with this adverse outcome

AGR verdict: Telcos' broadband strength likely to be hit, say analysts

Last week’s Supreme Court (SC) verdict on adjusted gross revenue (AGR) of telcos can have a larger impact on the broadband network strength of operators, noted analysts, saying the payment will impact their ability to spend on tower tenancy. As of last week, the SC gave telecom companies three months to comply with its order, upholding the government’s definition of AGR and asked them to file a compliance report after depositing the money. READ MORE

Govt likely to reject telcos' demand for 2-year spectrum fee moratorium

The finance ministry is likely to reject a telecom industry demand for a two-year moratorium on payment for spectrum bought in previous auctions, according to an official in the know. This would come as a double whammy for telcos reeling from severe financial stress.
 
Recently, in an unrelated development, the Supreme Court had upheld the government’s definition of adjusted gross revenue (AGR) and directed telecom operators to pay up the pending licence fee and other charges that could add up to an estimated Rs 1.33 trillion. READ MORE

FIIs trim their holdings in 12 private banks in second quarter of FY20

Foreign institutional investors (FIIs) have trimmed their holdings in 12 private banks in the September quarter amid concerns over a build-up of stress in mid-sized companies and small and medium enterprises (SMEs).
 
Within the BSE-500 universe, mid-sized private banks are the ones to see deeper cuts in FII stakes. For instance, Karnataka Bank saw its FII stake reduced by 167 basis points (bps) to 13.7 per cent in the September quarter from 15.37 per cent in the June quarter. READ MORE

Samvat 2076 top picks: In tough times, investors are seeking quality

Investors seem to have little to complain about Samvat 2075, as it ended with double-digit returns compared to a mid-single digit performance in the previous Hindu calendar year. However, the better show by leading benchmarks Sensex and Nifty masks the pain in sectoral indices, as well as in the small- and mid-cap companies, which registered their second straight year of negative returns. READ MORE

Market performance in Samvat 2075 was unsatisfactory: Motilal Oswal

Market performance in Samvat 2075 wasn’t satisfactory; the broader market participation was missing, says MOTILAL OSWAL, managing director and chief executive officer of Motilal Oswal Financial Services. In conversation with Sundar Sethuraman, Oswal says market gains will be capped until there is economic recovery. READ FULL INTERVIEW HERE
MOTILAL OSWAL, managing director and chief executive officer of Motilal Oswal Financial Services

Nifty outlook and top trading ideas by CapitalVia: Buy TCS, HCL Tech

Market recovered from lower level; Nifty needs to hold 11,500 for further upside
Markets traded with volatility on October 24 but recovered smartly from day’s low of 11,490.75 and Nifty managed to hold 11,500 and this will act as crucial support for the Diwali truncated week. Surprisingly, SBI Q2 results impacted market which in turn helped market to close in the positive territory. READ MORE

Bulk deals on BSE as on Sunday

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


Rupee Check

Source: Bloomberg


Oil Check

-- Oil prices steadied after taking a knock from signs of rising US stockpiles.
 
-- Brent crude futures firmed to $61.22, while US crude added 3 cents to $55.69 a barrel in early trade.

SGX Nifty

At 7:40 am, the Singaporean Exchange for Nifty Futures were at 11,676 level, up 10 points.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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