MARKET WRAP: Sensex gains 170 pts as financials gain; Nifty50 tops 11,850

Topics Markets | MARKET WRAP

Benchmark indices ended Thursday's volatile session in the positive territory amid buying in select blue-chip counters such as ICICI Bank, HDFC Bank, Infosys, HDFC, and TCS (Tata Consultancy Services). Investor sentiment remained subdued after retail inflation in October breached RBI's medium-term target of 4 per cent for the first time in 15 months. That apart, worries over telecom players, too, kept investors cautious. 

The S&P BSE Sensex gained 170 points or 0.42 per cent to end at 40,286 with ICICI Bank (up around 3 per cent) being the top gainer and Vedanta (down around 3 per cent) the biggest loser. During the day, the index witnessed a swing of around 322 points.

In the broader market, the S&P BSE MidCap index added 20 points or 0.14 per cent end at 14,680 while the S&P BSE SmallCap index ended at 13,344, down 0.01 per cent. 

On the NSE, the broader Nifty50 index ended at 11,870, up 30 points or 0.25 per cent. 

Sectorally, metal stocks cracked the most with the Nifty Metal index closing around 2 per cent lower at 2,508 levels. On the flip side, financial services stocks rallied the most. Nifty Bank gained over 0.7 per cent to settle at 30,764 levels.  

Volatility index India VIX slipped around 6 per cent to 15.50 levels.

BUZZING STOCKS

Shares of telecom services providers Vodafone Idea and Bharti Airtel were under pressure, plunging up to 22 per cent on the BSE on Thursday on report that the government has directed the telcos to clear their adjusted gross revenue (AGR) dues in 3 months. READ MORE

Shares of Bata India, the leading footwear retailer, climbed as much as 5.45 per cent to Rs 1,775.65 apiece on the BSE after the company posted a 29.96 per cent increase in consolidated net profit at Rs 71.30 crore for the September quarter. It had posted a net profit of Rs 54.86 crore in the July-September quarter a year ago, Bata India said in a BSE filing. The stock ended at Rs 1710 apiece, up 1.56 per cent. READ MORE

SpiceJet tumbled up to 7 per cent at Rs 105.8 on the BSE on Thursday after the budget carrier's loss widened in the September quarter at Rs 462 crore on the back of higher costs during a seasonally weak quarter.  The stock ended nearly 6 per cent lower at Rs 107 apiece on the BSE. READ MORE   

GLOBAL MARKETS

World stocks nudged down on Thursday as Chinese economic data slowed in October and Germany only narrowly avoided a recession in the third quarter, adding to worries about the global growth fallout from the US-China trade war. In Asia, stocks fell after soft economic data in China and Japan showed the trade war between Beijing and 

Washington was hitting growth in some of the world’s biggest economies.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 per cent. Japan's Nikkei stock index fell further, dropping 0.8 per cent. Hong Kong's Hang Seng fell 0.8 per cent to a fresh one-month low.

In commodities, Brent crude futures rose 0.74 per cent to $62.83 a barrel while US West Texas Intermediate (WTI) crude gained 0.77 per cent to $57.56 per barrel.

(With inputs from Reuters)

3:44 PM IST

3:43 PM IST

3:39 PM IST The S&P BSE Sensex gained 170 points or 0.42 per cent to end at 40,286.48 levels while NSE's Nifty50 index ended above 11,850-mark to end at 11,870.45.  

3:08 PM IST -- S. Gehlaut writes to MCA Secy, says company is cooperating with the authority -- Govt to submit report in court on Nov 29

3:06 PM IST

2:58 PM IST -- Standalone net profit at Rs 526.5 cr -- Revenue at Rs 4,797.4 cr -- EBITDA at Rs 659.3 cr; margin at 13.7%

2:48 PM IST The company’s revenue during the quarter jumped 90 per cent to Rs 1,405 crore from Rs 741 crore in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved 10 basis points (bps) sequentially and unchanged on yearly basis at 4.7 per cent. READ MORE 

2:34 PM IST

2:26 PM IST The growth in liquor sales is unlikely to see a meaningful revival in the second half of this financial year as the impact of economic slump and liquidity deficit in trade channels has cast a shadow over the sector.   Experts are of the opinion that though the second half of this financial year will see some recovery, volume growth is likely to remain in single digit as compared to the double-digit rise recorded in past years. READ MORE

2:13 PM IST Given intensifying competition in the air coolers industry and SYML’s single-product focus, we believe defending market share while maintaining a superior margin/cash flow profile vis-a-vis peers is expected to be challenging. Hence, we maintain ‘REDUCE/SU’ with a revised TP of Rs 770 (Rs 740 earlier, 25x) while rolling forward the valuation to March 2021E.

LIVE UPDATES

Nifty snapshot


Index watch


CLOSING BELL

The S&P BSE Sensex gained 170 points or 0.42 per cent to end at 40,286.48 levels while NSE's Nifty50 index ended above 11,850-mark to end at 11,870.45.  

NEWS ALERT | Govt confident of completing initial probe against Indiabulls grp: govt sources to CNBC TV18

-- S. Gehlaut writes to MCA Secy, says company is cooperating with the authority

-- Govt to submit report in court on Nov 29

MARKET CHECK | ICICI Bank hits new high; HDFC Bank nears record high


Earnings Alert | Grasim Q2

-- Standalone net profit at Rs 526.5 cr

-- Revenue at Rs 4,797.4 cr

-- EBITDA at Rs 659.3 cr; margin at 13.7%

Dixon Technologies surges 12% as Q2 profit more than doubles

The company’s revenue during the quarter jumped 90 per cent to Rs 1,405 crore from Rs 741 crore in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved 10 basis points (bps) sequentially and unchanged on yearly basis at 4.7 per cent. READ MORE 

MARKET CHECK | Top 5 losers on the BSE at present


Slowdown blues for liquor: Consumption took a beating in September quarter

The growth in liquor sales is unlikely to see a meaningful revival in the second half of this financial year as the impact of economic slump and liquidity deficit in trade channels has cast a shadow over the sector.
 
Experts are of the opinion that though the second half of this financial year will see some recovery, volume growth is likely to remain in single digit as compared to the double-digit rise recorded in past years. READ MORE

BROKERAGE RADAR | Edelweiss Securities on Symphony

Given intensifying competition in the air coolers industry and SYML’s single-product focus, we believe defending market share while maintaining a superior margin/cash flow profile vis-a-vis peers is expected to be challenging. Hence, we maintain ‘REDUCE/SU’ with a revised TP of Rs 770 (Rs 740 earlier, 25x) while rolling forward the valuation to March 2021E.

Global Markets Check

-- Asian stocks fell on Thursday after soft economic data in China and Japan showed the trade war between Beijing and Washington hitting growth

-- MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3%, Japan’s Nikkei stock index fell 0.8%, and.Australia’s S&P/ASX200 wiped earlier gains to close 0.5% higher.

-- European stock futures point to a flat open after recent rises. U.S. futures were down 0.1%, following a record-high close on the S&P 500 on Wednesday.

(Source: Reuters)

Earnings Alert | Vedanta Q2

-- Consolidated net profit at Rs 2,158 crore, up 60% YoY

-- Cons revenue at Rs 21,958 cr, down 3.3% YoY

-- Cons EBITDA at Rs 4,423 cr, down 13.8% YoY

Biggest drop in power demand makes Indian banks' bad debt headache worse

Banks had about Rs 1.8 trillion ($25 billion) of stressed loans to India’s coal-fired power generators as of last year, according to the State Bank of India. Prospective bidders for these stressed generators are wary as demand from the country’s power distribution utilities contracted in three straight months to October.
 
India’s electricity demand is closely linked to its industrial output, which contracted in September to its lowest level in eight years. An overwhelming majority of data is pointing to continued weakness in the economy that expanded 5 per cent in the quarter ended June -- the slowest pace in six years. READ MORE

NEWS ALERT | Moody's cuts India's GDP growth forecast to 5.6 pc for 2019:

-- Says, GDP slowdown in the country is lasting longer than previously expected

-- It expects economic activity to pick up in 2020 and 2021 to 6.6% and 6.7%, respectively, but pace could remain lower than in the recent past.

Alert: Moody's had last month lowered its growth forecast for India to 5.8 per cent from 6.2 per cent and said a weaker growth outlook will dampen the prospects for fiscal consolidation

NEWS ALERT | Central Bank of India discloses gross NPA divergence at Rs 2,565 cr for FY19: BSE filing


Voda Idea, Bharti Airtel, MTNL: Are telecom stocks entering a bear phase?

The overall trend for Bharti Airtel remains positive as the price has been rising with the "higher high, higher lows" formation. It opened gap down today and till it trades above Rs 350, the upside bias is still favourable. The major move is expected above Rs 385, which is a trend line resistance as per the daily chart. Although, RSI and Moving Average Convergence Divergence (MACD) are trading with negative bias; however, Rs 350 remains a firm support. READ MORE  

BROKERAGE RADAR | Anand Rathi Research on JB Chemicals

We expect its return ratios and operating margins to improve further. These, and its positive cash-flows and debt-free status render valuations attractive as the stock now trades at a discount to its peers. We maintain a Buy, with a higher target of Rs 551 (earlier Rs 464) based on14x FY21e earnings.

Risks: More products under the NLEM, currency fluctuations and the changing regulatory environment.

Top 5 gainers on the BSE at present


Market Check


BROKERAGE RADAR | HDFC Securities on Deccan Cement

Despite a weak 2Q results, we like DCL for its strong margin focus and increasing cost reduction measures. We expect demand recovery in 2H to boost profitability and internal accruals for growth capex. We maintain BUY with TP Rs 610/share (6x Sep’21E EBITDA and 50% value to its FY22E CWIP). Our TP implies EV of USD 56/MT. The stock currently trades at 4.0/4.7x FY21/22E EBITDA and EV of USD 41/MT.

Muthoot Finance surges 9% on strong Q2 results

The company’s net interest income (NII) jumped 32 per cent YoY to Rs 1,467 crore against Rs 1,114 crore in the corresponding quarter of the previous fiscal. Net profit rose 77 per cent to Rs 858 crore from Rs 484 crore in the year-ago quarter. READ MORE  

NEWS ALERT | BoB determines the issue price at Rs 107.45/sh for shares to be issued to govt: BSE filing

-- Shares to be issued on preferential basis

Sector watch | Nifty Metal index declines


Muthoot Finance surges 9% on strong Q2 results

The stock of the non-banking finance company (NBFC) was trading close to its all-time high level of Rs 718 touched on October 31, 2019.
 
The company’s net interest income (NII) jumped 32 per cent YoY to Rs 1,467 crore against Rs 1,114 crore in the corresponding quarter of the previous fiscal. Net profit rose 77 per cent to Rs 858 crore from Rs 484 crore in the year-ago quarter. READ MORE

NEWS ALERT | Oct WPI inflation at 0.16% vs 0.33% MoM: CNBC TV18

-- Oct food inflation at 7.65%

-- Manufactured products inflation at (-) 0.84%

With just 8% growth, India trails other EMs in latest market surge

Emerging markets (EMs) have been on an upmove since August-end, gaining over 10 per cent. During the same period, Indian benchmarks have gained only 8 per cent. Had it not been for the corporation tax rate cut, the indices could have been trading in negative territory.
 
While India has benefited from the improvement in global investor sentiment, domestic issues such as weak economic growth, crisis at non-banking financial companies (NBFCs), and rising corporate defaults have weighed on performance. READ MORE

BROKERAGE RADAR | Edelweiss Securities on ABB

A comprehensive product profile implies ABB can exploit multiple growth opportunities across sectors with sharpening customer focus on improving efficiencies. However, we maintain ‘HOLD/SP’ as we believe upsides to our estimates (46% PAT CAGR over CY18-20E) are capped. Clarity on Powergrid’s demerger process/valuations remains key monitorable. 

Top gainers on BSE at this hour


MFs' exposure to NBFCs down 30% in 15 months since IL&FS crisis broke out

The overall exposure of mutual funds (MFs) to non-banking financial companies (NBFCs) has dipped by 30 per cent since July 2018, the month after which the Infrastructure Leasing & Financial Services (IL&FS) crisis began to surface.
 
Total MF assets in NBFCs stood at Rs 1.86 trillion in October 2019, a drop of 30 per cent, or Rs 79,000 crore, since July 2018, according to CARE Ratings. The percentage share declined to 12.8 per cent, from 19 per cent, in the same period. READ MORE

VST Industries hits new peak after Radhakishan Damani buys shares

Shares of VST Industries jumped up to 7.5 per cent to hit a new high of Rs 4,600 apiece on the BSE on Thursday, a day after Radhakishan Damani bought 2,70,000 shares at Rs 4,259.99 apiece on the BSE, according to bulk deal data. The data also showed HDFC Mutual Fund sold 273,706 shares at Rs 4,260 apiece. READ MORE

NEWS ALERT | SC allows Arcelor to submit bid in coal auction: CNBC TV18

Alert: Arcelor had moved the court for nod to bid in the upcoming coal auctions due to end on November 17

Market check


Analysts maintain 'buy' call on SpiceJet despite loss in Q2; here's why

Analysts maintain 'buy' call on the stock on the back of the airline's growth prospects and expected compensation from Boeing.
 
ICICI Securities, for instance, remains positive on the stock considering the "overall low capacity growth in Indian airlines and expected improvement in operations over the next two years with better cost management". READ REPORT HERE

Saudi Aramco IPO: Here's how you can invest in world's biggest public offer

Saudi Aramco plans to sell 0.5 per cent of its shares to institutional investors, individual Saudis and other Gulf nationals. Even then, the sale would make the issue the biggest in the world. Following the two-step inclusion process, Saudi Arabia currently ranks the 9th biggest market (2.8 percent weight) within the MSCI Emerging Markets index. READ MORE  

Bata India gains nearly 50% so far in CY2019; should you buy the stock?

Analysts at ICICI Securities like the company's existing focus on improving brand imagery and launching new and trendy product ranges backed by aggressive campaigns. "We believe that expansion of flagship stores with ‘experience centres’ (various foot care facilities, improved product assortment) improves confidence on Bata’s long-term ability to growth and premiumise," they wrote in a results review note dated November 14.


Momentum Picks by ICICI Securities


Vodafone Idea, Bharti Airtel tank up to 22% on Govt order to pay AGR dues

Shares of telecom services providers Vodafone Idea and Bharti Airtel were under pressure, plunging up to 22 per cent, in early morning trade on the BSE on Thursday on report that the government has directed the telcos to clear their adjusted gross revenue (AGR) dues in 3 months.
 
The Department of Telecommunications (DoT) has started the initial process of claiming its dues from telcos, directing them to pay up in accordance with the Supreme Court’s October 24 order, under which they have been given three months to fulfill their obligations, Business Standard reported. READ MORE

Business transition produces mixed results for ABB India; stock up over 2%

ABB India stock rose by over 2 per cent on Wednesday on the back of its September quarter results (third quarter, Q3; the company follows January–December accounting year) meeting the Street’s expectations. Revenues grew by 17 per cent year-on-year (YoY) to Rs 1,746 crore, while profit before tax more than doubled to Rs 113 crore, on the back of better portfolio mix and improved efficiency. READ MORE

Bharti Airtel falls over 2% ahead of Sept qtr results


Vodafone Idea slips 14%


Results impact | Bata India surges 5% post Q2 results


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 23 points or 0.07 per cent higher at 40,144.78 while NSE's Nifty50 index was ruling at 11,850.65 levels, 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 at 72.07/$ vs Wednesday's close of Rs 72.08/$

Govt wants telcos to clear AGR dues in 3 months; relief package in works

The letter to the telcos points out that it is the responsibility of the licensees to pay after carrying out their own assessment as prescribed in the licence agreement.
 
A senior official of the Cellular Operators Association of India (COAI) said in accordance with the licence agreement, the companies had to file the amount of licence fees they had to pay on their assessment of adjusted gross revenue and the DoT did not make the calculation or send any demand notice. READ MORE

GAIL's gas trading business disappoints in Q2, but recovery hopes alive

Even though GAIL’s performance on the volume front remained decent in Q2, its soft operating performance disappointed investors. The one-offs in its largest gas trading/marketing and transmission segments, coupled with weak profitability of the liquefied petroleum gas (LPG) and liquid hydrocarbon segments, resulted in a lower-than-expected operating performance. READ REPORT HERE

Stocks to watch: Voda Idea, Bharti Airtel, SpiceJet, BHEL, Bata, VST Ind

Here's a look at the top stocks that may remain in focus today -
 
Earnings today: Today, a total of 1,431 companies, including Apollo Hospitals, NBCC, Bharti Airtel, and Vodafone Idea are scheduled to announce their September quarter numbers.
 
Telcos: The Department of Telecommunications (DoT) has started the initial process of claiming its dues from telcos, directing them to pay up in accordance with the Supreme Court’s October 24 order, under which they have been given three months to fulfil their obligations. That apart, global brokerage major HSBC has noted that Vodafone's joint venture (JV) in India is in a precarious situation after Vodafone's global CEO reiterated that there will be no further injection of group equity into India. READ MORE

Vodafone's India JV with Idea in a precarious situation, says HSBC

London-based analysts at HSBC said in a research note after Vodafone Group's half-yearly results announced on Tuesday that its Indian operation's condition was critical.
 
"The JV in India is clearly in a precarious situation following the Supreme Court's AGR-related fine," HSBC said. READ MORE

Liquidation of Voda-Idea may mean $1.7-trillion hit for shareholders

Shareholders of Vodafone Idea will lose Rs 1.68 trillion of their equity investment in the event of liquidation under the burden of mounting financial liabilities. Of this, nearly Rs 99,000 crore is the cumulative equity investment by the company shareholders, including the AV Birla group and Vodafone Plc, over the years, and the balance is the reinvested earnings of the company. READ REPORT HERE

Buy and sell ideas by Sacchitanand Uttekar of Tradebulls Securities

Stock: General Insurance Corporation of India (GICRE)
 
Reco: BUY
 
CMP: Rs 270
 
GICRE has been oscillating within the upward rising channel formation since it witnessed a breakout from the accumulation zone around 230. The recent pullback within the pattern provides yet another opportunity to add longs as the stock is now placed near the retracement support zone of its prior impulse. We expect the stock to retain its secular upmove and revisit its swing resistance zone around 330-335. Longs could be added with a stop below 252. READ MORE HERE

Nifty outlook and top trading ideas by CapitalVia: Buy TVS Motors, RIL

Market traded with negative sentiments throughout the day on Wednesday on weaker global cues along with a weaker currency. Nifty closed at 11,840.45 shading 73 points. Media, PSU banks traded with red mark throughout the day and were the biggest losers among indices. Nifty bank closed at 30,541.50 losing 574 points from the previous day’s closing. READ MORE

Bulk deals on BSE as on Wednesday

Bulk deals on NSE as on Wednesday

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


Rupee Check

Source: Bloomberg


Oil Check

At 8:06 AM, Brent Crude Futures were at $62.75 per barrel-mark.

SGX Nifty

At 8:05 AM, the Singaporean Exchange for Nifty Futures were at 11,880 level, up 15 points.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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