MARKET WRAP: Sensex up 277 pts; TCS' m-cap tops Rs 10 trn, stock jumps 7%

NSE's Nifty ended above 11,500-mark at 11,503, up 0.76 per cent.
The equity benchmark indices ended nearly 1 per cent higher on Monday, mainly lifted by information technology (IT) stocks and private sector lenders such as HDFC Bank, and ICICI Bank. 

Shares of information technology (IT) companies were on a roll after Tata Consultancy Services (TCS) announced a share buyback plan amid expectation of strong earnings in the July – September quarter of the current fiscal (Q2FY21). The stock hit a fresh record high of Rs 2,727 on the BSE during the day before settling at Rs 2,707, up over 7 per cent. That apart, TCS' market capitalisation surged past the Rs 10 trillion mark for the first time ever.

Among headline indices, the S&P BSE Sensex settled 277 points, or 0.7 per cent higher at 38,974 levels and the Nifty50 index ended above 11,500-mark at 11,503, up 0.76 per cent. India VIX climbed over 7.6 per cent to 19.75 levels.

Meanwhile, financial stocks were in focus after the Supreme Court ordered that all affidavits in the interest waiver case be filed by October 12. The apex court will next hear the case on October 13. 

In the broader market, the S&P BSE MidCap index ended 0.18 per cent lower at 14,786.58 levels while the S&P BSE SmallCap index settled 0.38 per cent higher at 15,028 points. 

Global markets

Stocks rose on Monday as signs that President Donald Trump’s health was improving eased some of the political uncertainty caused by his coronavirus infection, which sent investors rushing for safety last week.

That helped US S&P 500 e-mini futures rise 0.62 per cent, while Nasdaq futures gained 0.89 per cent.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.08 per cent. Euro Stoxx 50 futures were up 0.82 per cent, German DAX futures rose 0.72 per cent, and FTSE futures gained by 0.91 per cent.

In commodities, oil prices rose, lifted by comments from doctors for US President Donald Trump suggesting he could be discharged from hospital as soon as Monday. 

(With inputs from Reuters)


LIVE UPDATES

SECTOR WATCH | Nifty IT gains nearly 3.5%


MARKET AT CLOSE | Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended 277 points, or 0.71 per cent higher at 38,974 levels while NSE's Nifty ended at 11,503, up 86 points, or 0.76 per cent.

MARKET CHECK


BROKERAGE VIEW | ICICI Securities on Coal India

RATING: BUY | TARGET PRICE: Rs 258

We maintain our BUY rating on CIL and our target price of Rs258. We remain structurally positive on the stock, valuing it on DCF basis with peak production of
850mnte from FY29E onwards. The stock is currently trading at 3.8x P/E and 1.7x EV/EBITDA on FY22E basis with 45% RoE.

Key downside risks: 1) Weakness in the power sector leading to lower volumes, 2) weakness in international coal prices (impacting the sentiment and making imported coal more competitive vs domestic coal), and 3) natural disasters impacting volumes.

BSE Midcap index trades flat with a negative bias


SpiceJet gains 3% as airline to start flights to London from December 4

Addressing media via video conferencing, CMD Ahay Singh said the airline would start flights between Delhi and Mumbai to London within two months. Besides, the airline would announce other destinations for long-haul flights in the days to come.
 
The airline would deploy A330neo for London operations, he said. READ MORE

TCS, Infosys, and HDFC Bank top contributors to Sensex's 300-point gain today


NEWS ALERT :: SpiceJet to start London-bound flights from December 4, says Ajay Singh


NEWS ALERT :: FM Sitharaman to address media on GST Council meeting outcome at 5:45 pm

Chemcon Speciality shares slip 31% in two days after making a strong debut

Chemcon Speciality Chemicals was listed at Rs 731, a 115 per cent premium against the issue price of Rs 340 per share on the BSE. It touched a high of Rs 743.80 in the intra-day on the exchange on Thursday. READ MORE 


NEWS ALERT :: Q2 was characterized by a partial revival of consumer sentiment, says Marico

>>  Rural continued to perform better than urban aided by Government’s focused relief packages, relatively lower impact of the pandemic, the resilience of the agricultural sector in a declining GDP context and the consumption shift due to reverse migration of labour.

>> The distribution network has rebounded back to near pre-COVID levels. 

>> India business witnessed signs of revival in consumer demand in the core categories contributing more than 90% of the business and registered robust volume growth in the quarter.

>> The international business has clocked mid-single digit constant currency growth

Steel costlier than pre-Covid level after firms hike prices by Rs 2,000 a tonne

Steel companies have increased prices by around Rs 2,000 a tonne effective this month, taking it to higher than pre-Covid-19 levels.
 
Most companies have increased prices of flat steel by Rs 1,500-2,000 a tonne from October 1. The average price of hot rolled coil (HRC), a benchmark for flat steel prices is now Rs 43,500 a tonne, what was around Rs 39,000 a tonne back in March before the lockdown. READ MORE
 

Rupee Closing

Rupee ends at lower at 73.29 per US dollar vs Thursday's close of 73.15/$

How one piece of hardware forced a full-day shutdown of Tokyo Stock Market

The full-day shutdown that ensued was the longest since the exchange switched to a fully electronic trading system in 1999. It drew criticism from market participants and authorities and shone a spotlight on a lesser-discussed vulnerability in the world’s financial plumbing -- not software or security risks but the danger when one of hundreds of pieces of hardware that make up a trading system decides to give up the ghost. READ MORE

Fund pick :: Canara Robeco Bluechip Equity Fund is a consistent performer

Launched in August 2010, Canara Robeco Bluechip Equity Fund has featured in the top 30 percentile of the large-cap category in the CRISIL Mutual Fund Ranking (CMFR) for three quarters ended June 2020. The fund has been managed by Shridatta Bhandwaldar and Sanjay Bembalkar since July 2016 and October 2019, respectively. READ MORE

BUZZING STOCK:: TCS extends gains; m-cap crosses Rs 10 trillion-mark


Uttam Galva Steels hits 5% upper circuit as ArcelorMittal may bid for Co

At 01:05 pm, the stock was frozen at Rs 6 on the BSE as compared to 0.68 per cent rise in the S&P BSE Sensex at 38,962 levels. Shares of Uttam Galva Steels had hit a 52-week high of Rs 10.93 on November 21, 2019 while its 52-week low level stands at Rs 3.62, hit on March 25, 2020. ArcelorMittal, the world’s largest steelmaker, had taken the bulk of Uttam Galva’s debt to be considered eligible for the Essar Steel bid under the insolvency law and became a significant financial creditor. READ MORE 


NEWS ALERT :: Bharti Infratel to approach NCLT to to make the Indus Tower merger scheme effective


MARKET CHECK


Top gainers on BSE at this hour

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ADANI GREEN 753.00 772.30 0.80
APL APOLLO TUBES 2938.10 3025.00 -0.71
BIRLASOFT LTD 204.70 210.55 5.24
COFORGE 2354.95 2438.95 0.79
HERO MOTOCORP 3141.55 3230.00 -0.32
» More on 52 Week High

European indices trade largely higher in early deals

(Source: Reuters)


Suprajit Engineering advances 10% post September quarter business update

Shares of Suprajit Engineering moved higher by 10 per cent to Rs 206.85 on the BSE in the intra-day trade on Monday after the company said its operational financial performance for the July-September quarter (Q2FY21) is expected to be normal despite Covid‐19 challenges. The stock of the auto parts and equipment company was trading close to its 52-week high level of Rs 220, touched on February 1, 2020. READ MORE 


NEWS ALERT :: SpiceJet told hold virtual press conference today at 2.20 pm


Expert View :: Jyoti Roy - DVP- Equity Strategist at Angel Broking on TCS

TCS has announced that the board of directors will consider a proposal for buyback of equity shares of the Company, at its meeting to be held on the 7th of October, 2020. We believe that while this is a positive development for the company it is also a positive development for the sector given that it could be a precursor for other IT companies to follow suit. Most IT companies have large surplus cash on books which can be used to reward shareholders either in the form of dividends or buybacks.

Troubled lender YES Bank's Q2 loans up 1.4% over Q1FY21 to Rs 1,66,854 cr

The lender, which is an associate of State Bank of India, disbursed Rs 3,795 crore in retail segment during the July-September 2020. It had disbursed just Rs 424 crore in retail segment Q1FY21, according to filing with BSE. Its stock was trading 1.43 per cent up at Rs 13.48 per share on BSE. READ MORE


Voda Idea, Airtel bat for tariff hike, but Reliance Jio is sitting tight

Backing him up was Vodafone Idea chairman Kumar Mangalam Birla who called tariffs, despite last December’s 40-50 per cent increase, very low and said raising them was vital for growth. But Reliance Jio is sitting tight or at least is in no mood to oblige. READ MORE
COMPANY LATEST(rs) CHG(RS) CHG(%)
VODAFONE IDEA 9.27 0.03 0.32
BHARTI AIRTEL 430.15 -2.20 -0.51
TATA COMM 842.70 4.30 0.51
» More

Aurobindo Pharma: Multiple growth triggers to improve Street sentiment

Shares of Aurobindo Pharma, which had corrected by over a fifth after hitting fresh 52-week high in August, have rebounded about 10 per cent in the last 10 days.
 
The company, which has seen strong growth trajectory, however, posted a sequential decline in revenue and net profit in June quarter (Q1) led by Covid-19 disruption, thereby impacting Street sentiment. READ MORE
 

NEWS ALERT :: Sri Lankan stock trading halted after over 8% plunge on new Covid-19 cluster


Q&A | Delayed US election a bigger risk for global financial markets: Ritu Arora

One has to be mindful of the fact that the extent of the permanent damage to economies is still not clear. And the damage is likely to increase exponentially as time passes by without a vaccine. Thus, portfolio position should be bottom-up and take into account such potential risks. A delayed US election process is a bigger risk for the global financial markets.READ MORE

MARKET UPDATE:: Volatility index, India VIX, rises 8%


IT shares rally; TCS, Infosys hit record highs, Wipro at 20-year high

Shares of information technology (IT) companies were on a roll at the bourses after the sector major Tata Consultancy Services (TCS) announced a share buyback plan and expectation of strong earnings for the July-September quarter (Q2FY21). TCS, Infosys, Mindtree, KPIT Technologies, Info Edge (India), Coforge, and Birla Soft hit their respective record highs on the National Stock Exchange (NSE). Besides, these stocks, NIIT, Mastek, Ramco Systems, Wipro, Aptech, and Tata Exlsi were up in the range of 4 per cent to 7 per cent. READ MORE

TCS, Infosys, MindTree: How to trade IT stocks ahead of Q2 earnings

Shares of information technology (IT) companies were trading firm in the morning deals on Monday. The Nifty IT index was trading over 2.5 per cent higher at 20,620 levels with all the 10 constituents advancing.
 
Among individual names, TCS rallied 5 per cent to hit a record high of Rs 2,650 on the NSE after the company said it will consider a buyback on Wednesday, October 7, 2020. READ MORE

Sector Watch :: Bank stocks dip after SC defers hearing


Interest Waiver Case :: Next hearing scheduled on October 13

>> Other stakeholders also granted time to file replies to centre's affidavit.

>> SC asks IBA to file its reply on Centre's proposals.

>> RBI to make public the recommendations made (and implemented) under Kamath Panel 
 
 

Interest Waiver Case :: SC grants 1 week's time to RBI, Centre to file additional affidavits

>> SC asks to also consider the issues raised by the real estate associations and power producers

Interest Waiver Case :: Petitioners argue that many issues have not been dealt with in Centre's affidavit, observes SC

>> Kamath Committee report has not been brought on record

>> Time allowed for filing of additional affidavit on any policy decision, implementation.
 
>> Govt, RBI also directed to respond to concerns raised by CREDAI, Power Producers.

Interest Waiver Case :: Place on record Kamath comm recos, additional decisions, observes SC

>> No consequential orders, circulars have been issued by the Gov for RBI to enforce the decisions
 
>> Kamath Committee recos are also not placed before us. 
 
>> RBI is to make public the recos that have been accepted, must be shared

Sector Watch :: Nifty Bank up 2%


Interest Waiver Case :: The delay is hurting the Banks, says Salve

>> If adjournment is given for filing reply, it should not be more than 2-3 days

Interest Waiver Case :: Our accounting frozen because SC has restrained us from classification of accounts as NPAs, says Harish salve for IBA

>> Will need 48 hours to get back to SC on Govt proposal

>> Govt has a two pronged approach. 
 
>> Govt has allowed relief to small borrowers by fiscal support for interst on interest. 
 
>> Kamat Comm recos take care of sectoral issues.

Alert: IBA is Indian Banks' Association

Interest Waiver Case :: The issue is not about placing report on record but about implementing the report, says SC

>> The Centre and RBI should make certain orders so that people know what benefit is extended.

Interest Waiver Case :: Decisions were taken even during the pendency of this Writ Petition, says V Giri appearing for RBI

>> A large number of people have felt that the interest of interest is hitting them hard

>> There are more deliberations and recommendations to be made

>> We will place the report on record if the SC feels it needs to be placed on record.

Interest Waiver Case :: We do not object to their request for filing reply, says Solicitor General Tushar Mehta for Centre

>> As far as granting time is concerned, it is the Court's prerogative and we are not opposed to it.

Interest Waiver Case :: Issues far more grave; As on September 1, all our accounts are "non standard", says Sibal

>> Sibal says citing difficulty for structuring of loan accounts that are non standard according to RBI circular on loan structuring

Interest Waiver Case :: Senior Counsel Kapil Sibal, apprearing for Credai, counters the Centre's affidavit

>> Says, a lot of figures cites in Centre's affidavit "without any basis"

>> Says, affidavit has nothing about relief for real estate sector. Reliefs sought by us have not been responded to by the Centre.

Hatsun Agro up 12% on bonus issue, fund raising plan; gains 70% in 6 months

“The board of directors of the company will meet on October 19, 2020 to consider the proposal for declaration of bonus shares,” Hatsun Agro Product said in a exchange filing. The board will also consider raising funds through private placement of equity shares by way of qualified institutional placement (QIP), it said. READ MORE

IT Q2 preview: Strong deal flow, traction in digital tech to drive earnings

The information technology (IT) companies are expected to post healthy numbers for the second quarter of the fiscal year 2020-21 (Q2FY21) owing to multiple tailwinds such as strong deal flow, traction in digital technologies, and resolution of supply-side issues as the quarter witnessed easing of Covid-19-induced lockdowns in many countries. READ MORE 

.

Solar Industries rallies 7% on signing new contract worth of Rs 409 crore

Shares of Solar Industries rallied 7 per cent to Rs 1,143 in the intra-day trade on the BSE on Monday after the company signed contracts worth of Rs 409 crore to supply 1 million pieces of multimode hand grenade to the Ministry of Defence. "Economic Explosives Ltd, wholly owned subsidiary of Solar Industries India, has signed a contract for supply of Multi-Mode Hand Grenade (MMHG) with Ministry of Defense, Government of India," Solar Industries said in a regulatory filing. READ MORE

Angel Broking makes a weak debut, lists at 10% discount against issue price

Shares of Angel Broking made a weak debut at the bourses, listing at Rs 275, a 10 per cent discount against issue price of Rs 306 per share on the BSE and National Stock Exchange (NSE). The Rs 600-crore initial public offering (IPO) of Angel Broking was subscribed nearly four times. READ MORE 

 

BUZZING STOCK:: Wipro surges over 5%


Rupee Opening

Rupee opens at 73.17 per US dollar vs Thursday's close of 73.15/$

NEW LISTING :: Angel Broking lists at 10% discount against issue price of Rs 306


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 9.22 -0.22
TRIDENT 8.08 1.89
HCL TECHNOLOGIES 835.55 2.81
VEDANTA 137.70 0.18
S A I L 35.40 3.51
» More on Most Active Volume

NEWS ALERT :: Hatsun Agro Board to approve issue of bonus shares on Oct 19

MARKET CHECK


Angel Broking at Pre-open :: Stock settles at Rs 275/sh


NEWS ALERT :: L&T Construction bags contracts in the range of Rs 1,000-2,500 cr for its various biz


Japan Sep service activity shrinks at slowest pace since pandemic's start

Activity in Japan's services sector contracted for the eight straight month in September but at the slowest pace since the coronavirus pandemic started wreaking havoc on the economy, a private business survey showed on Monday, in a sign that demand is starting to steady.
 
The final Jibun Bank Japan Services Purchasing Managers' Index (PMI) rose to its highest in eight months, coming in at a seasonally adjusted 46.9 from 45.0 in the previous month. READ MORE

TCS rallies 5%, hits a fresh record high on share buyback plan

Shares of Tata Consultancy Services (TCS) rallied 5 per cent to Rs 2,649.95 on the BSE in the early morning trade on Monday after the company said it will consider a buyback on Wednesday, October 7, 2020. The stock of the Tata group IT bellwether surpassed its previous high of Rs 2,554, touched on September 22, 2020. READ MORE

ITI gains 5% on new order

>> ITI on Thursday signed Rs 7,796 crore Phase IV Project of Army Static Switched Communication Network (ASCON) for deploying strategic network for secured communication across the country and subsequent maintenance for next 10 years.


MindTree hits 52-week high


Vedanta up around 1 per cent as delisting bidding opens


Sept Auto Sales :: Tata Motors up 2%

>> Tata Motors on Thursday reported a 5.09 per cent increase in total sales to 110,379 units in the second quarter of the current fiscal.


IndusInd Bank soars 6%


Reliance Industries up half a per cent

>> Indian oil-to-telecoms conglomerate Reliance Industries Ltd said on Saturday Singapore sovereign wealth fund GIC and global private equity firm TPG Capital will invest a combined Rs 7,350 crore (about $1 billion) in its retail unit.

TCS jumps over 4% on share buyback plan


Sectoral trends :: IT, financials lead; defensives slow in trade


Sensex Heatmap at Open


Opening Bell :: Nifty tops 11,500 for the first time since Sept 21


Opening Bell


Commodity Heatmap


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


Markets at Pre-open


Markets at Pre-open


BROKERAGE VIEW :: Citi on interest case

>> Govt to likely bear the cost of interest on interest for 6 months 

>> Govt has put in place enough measures for large borrowers

>> Need to wait for clarification on process

>> Not possible to waive off loan on all accounts  

BROKERAGE VIEW :: Edelwiess on Interest case

>> Interest burden could be 10-15 bps of loans

>> Direct economic impact is miniscule

>> Plan is a net negative for credit culture and repayment discipline

BROKERAGE VIEW :: Macquarie on Interest case

>> Cost to govt should not exceed Rs 7,000 cr

>> This will set a bad moral precedence and could vitiate credit culture

Nifty placed at a crucial juncture: Sameet Chavan of Angel Broking

Markets are superior and there is no harm accepting the miss. Now, we are standing at a crucial juncture, where we can see a converging point of two important trend lines. If we connect recent swings highs and swing lows, two trend lines are converging around 11,475-11,550. If these levels are taken out, this will certainly negate the bearish stance and then the indies can head higher. But till the time it doesn't cross this level convincingly, we are still not completely out of the woods. READ MORE

Here's a Bull Spread Strategy on L&T Finance

Bull Spread strategy on L&T Finance
 
Buy L&T Fin Oct 65 CALL at Rs 2.85 & simultaneously sell 75 Call at Rs 0.60
 
Lot Size 6800

Rationale:
 
Long build up is seen in the L&T fin Futures’ where we have seen 11%(Prov) rise in the Open Interest with Price rising by 4%. READ MORE

Stocks to watch out for

TCS: The IT major is slated to release its September quarter earnings on October 7 (Wednesday). The company will also consider a proposal for buyback of equity shares of the company.
 
RIL: Indian oil-to-telecoms conglomerate Reliance Industries Ltd said on Saturday Singapore sovereign wealth fund GIC and global private equity firm TPG Capital invested a combined Rs 7,350 crore (about $1 billion) in its retail unit.
 
Tata Motors on Thursday reported a 5.09 per cent increase in total sales to 110,379 units in the second quarter of the current fiscal. READ MORE 


Stock tips by Nilesh Jain of Anand Rathi

BUY MUTHOOTFIN | TARGET: Rs 1,210 | STOP LOSS: Rs 1,120
 
The stock has provided a breakout from a falling wedge pattern on the daily chart. It is also trading well above its short-term and long-term moving averages. The momentum indicators and oscillators are in the buy mode on the daily scale which hints at further momentum in the counter. Based on the aforementioned rationale, we can expect conservative target of 1,210. READ MORE

Stock picks by Prabhudas Lilladher

BUY INDIAN HOTELS | CMP: Rs 96.90 | TARGET: Rs 115-120 | STOP LOSS: Rs 88
 
The stock has recently bottomed out near 90 levels and has picked up momentum to improve the bias. It almost moved past the 200- DMA to indicate strength and potential to rise further in the coming days. With the RSI indicator also on the rise, improving the trend, we suggest to buy and accumulate the stock for an upside positional target of 115-120 keeping the stop loss near 88. READ MORE

Bulk deals on NSE as on Thursday

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


Rupee check

Source: Bloomberg


Oil prices claw back 2% after upbeat signals from Trump doctors

>> Oil prices rose about 2% on Monday, lifted by comments from doctors for US President Donald Trump suggesting he could be discharged from hospital as soon as Monday, just a few days after his positive test for Covid-19 sparked widespread alarm.

>> Trump’s health update eased political uncertainty in global markets, pushing Brent up to $39.96 a barrel, gaining 69 cents or 1.8%. US West Texas Intermediate (WTI) crude was at $37.81 a barrel, up 76 cents, or 2.1%.
 
>> Prices had slumped more than 4% on Friday amid uncertainty surrounding Trump’s health, adding to concern that rising coronavirus case numbers that could dampen global economic recovery.

(Source: Reuters)
 

SGX Nifty update

>> At 8:29 am, the index was at 11,425 level, up 94 points

Wall Street on Friday

Source: Reuters


Global stocks rise as signs of Trump's improving health calm markets

Source: Reuters


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