MARKET WRAP: Indices end flat, Nifty at 10,380; YES Bank rallies 9%

The benchmark indices ended largely flat on Thursday.

The S&P BSE Sensex ended at 34,432, down 10 points (0.03 per cent), while the broader Nifty50 index settled at 10,380, down 6 points (0.06 per cent).

Among individual stocks, YES Bank rallied 9.3 per cent to Rs 205.60 on the National Stock Exchange (NSE). Shares of Larsen & Toubro (L&T) rose 2.6 per cent to Rs 1,331.10 per share after the company reported 23 per cent year-on-year (Y-o-Y) jump in its consolidated net profit at Rs 22.30 billion in September quarter (Q2FY19). The consolidated gross revenue during the quarter grew 21 per cent at Rs 320.81 billion on a Y-o-Y basis.

Among sectoral indices, Nifty IT index was the top loser of the day, falling 2.1 per cent weighed by HCL Technologies and Infosys. On the other hand, among gainers, the Nifty Metal index rose 1.3 per cent led by NMDC.

In the broader markets, both the S&P BSE MidCap and S&P BSE SmallCap rose 1 per cent each to end at 14,773 and 14,356 respectively.

Manufacturing PMI up at 53.1 in Oct

The country's manufacturing sector activity improved in October, as firms scaled up production and employment levels amid a strong rise in new business order flows, a monthly survey said Thursday.

The Nikkei India Manufacturing Purchasing Managers' Index strengthened from 52.2 in September to 53.1 in October as new orders and production increased at the quickest rate in four months. This is the 15th consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Global Markets

Battered equity investors got Asia off to a positive start for November, as Thursday’s session benefited from another strong performance on Wall Street, while the pound jumped on a report Britain has secured a deal that would give its financial services firms continued access to European markets after Brexit.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7 per cent, adding to modest gains the previous day, though this came after a brutal October month. The index had fallen 10.2 per cent in October, its worst monthly performance since August 2015, as factors ranging from Sino-US trade tensions to worries about global economic growth, higher US interest rates and company earnings spurred volatility in global markets.

Hong Kong’s Hang Seng rose 1.5 per cent and the Shanghai Composite Index climbed 0.2 per cent. Japan’s Nikkei bucked the trend and slipped 1 per cent following two days of big gains.

(with inputs from Reuters)


Top sectoral gainers and losers on NSE
S&P BSE Sensex: Top gainers & losers

Market At close

The S&P BSE Sensex on Thursday ended flat at 34,431.97, down 10 points while NSE's Nifty50 index closed just 6 points lower at 10,380.45. 
Bajaj Electricals Q2 net jumps 79.56% to Rs 34.08 cr

Consumer durables firm Bajaj Electricals Thursday posted a 79.56 per cent year-on-year jump in standalone net profit at Rs 34.08 crore for the second quarter ended September. It had reported a net profit of Rs 18.98 crore in the corresponding quarter last fiscal.
Total income increased to Rs 1,604.20 crore during the quarter under review, from Rs 946.13 crore in the same quarter last fiscal, it said in a release. READ MORE

HDFC net profit rises 25% to Rs 2,467 crore in Q2

Mortgage lender HDFC Ltd Thursday reported 25 per cent rise in its standalone net profit to Rs 2,467.08 crore in second quarter ended September 30. The company had registered a net profit of Rs 1,978.19 crore in the corresponding period of 2017-18. READ MORE

Sebi directs Sahara group, its chief Subrata Roy to refund Rs 141 bn

The Securities and Exchange Board of India (Sebi) has barred Sahara India Commercial Corporation (SICCL), its chief Subrata Roy Sahara and 13 other persons from dealing in the securities market for a period of four years, directly or indirectly, for allegedly breaching securities norms by raising money from the market through optionally fully convertible debentures (OFCDs).
The capital market regulator has also directed Sahara India, SICCL, Roy to refund Rs 141 billion along with 15 per cent interest from the date of this order, till the expiry of 4 years from the date of completion of refunds to investors. READ MORE

Top gainers in BSE 500:

KEI INDS. 351.00 44.70 14.59 152669
PC JEWELLER 66.70 8.20 14.02 2885636
REL. COMM. 13.66 1.33 10.79 15347212
BOMBAY DYEING 115.00 10.45 10.00 780279
ADANI POWER 50.45 4.40 9.55 7383720
» More on Top Gainers
Vedanta gains after declaring Q2 result

Vedanta rose 0.5% to Rs 212.30 at 13:41 IST on BSE after the company announced Q2 result after market hours yesterday, 31 October 2018. Meanwhile, the S&P BSE Sensex was up 23.74 points, or 0.07% to 34,465.79
On the BSE, 11.53 lakh shares were traded in the counter so far compared with average daily volumes of 9.05 lakh shares in the past two weeks. READ MORE

Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 34,416.03 -26.02 -0.08
S&P BSE SENSEX 50 10,862.20 -9.29 -0.09
S&P BSE SENSEX Next 50 31,431.88 +117.65 +0.38
S&P BSE 100 10,660.02 -1.70 -0.02
S&P BSE Bharat 22 Index 3,432.71 +39.35 +1.16

Escorts gains 10% on strong October sales
The company's tractor sales stood at 21,039 units during the second quarter (July-September) of the current fiscal witnessing a growth of 3.3%. READ MORE
Rising gold prices likely to dampen Indian festive purchases: WGC
Indian gold demand in 2018 is expected to fall from the previous year as a rally in local prices to five-year highs is likely to dent purchases during key festivals in the December quarter, the World Gold Council (WGC) said on Thursday. READ MORE
Ten years of Bitcoin: How it started and what the future might hold

A mysterious, anonymous entity known as “Satoshi Nakamoto” posted a white paper on October 31 2008 entitled “Bitcoin: A Peer-to-Peer Electronic Cash System”. It was the first time that the concept of Bitcoin entered the world. But outside of the cypherpunk mailing lists – those promoting the use of privacy-enhancing technology – this event was hardly noticed. Ten years on, who hasn’t at least heard of the cryptocurrency? READ MORE
Adani Power hits 52-week high post Q2 results; stock soars 45% in one week

Shares of Adani Power hit a 52-week high of Rs 47.85 per share, up 4% on the BSE, after Adani Group company posted 22% year-on-year (Y-o-Y) growth in its consolidated net profit at Rs 3.87 billion in September quarter.
It had posted a profit of Rs 3.17 billion in the same quarter last year. The electric utility company had a net loss of Rs 8.25 billion in the previous quarter. READ MORE

Tough road ahead for bruised rupee amid trade war, political risks: Poll

There will be little respite for the bruised Indian rupee over the coming year, depressed by an escalating US-China trade war and rising domestic political risks ahead of a general election, a Reuters poll showed.
Investors have generally shunned emerging-market assets this year, made riskier by the international trade tensions and the increasing attractiveness of dollar yields, thanks to the US Federal Reserve's steady pace of rate increases. READ MORE

Stock alert: PC Jeweller up over 9%

India jumps 23 spots to 77 in World Bank's ease-of-doing-business rankings

India jumped 23 places to come in at the 77th spot in the World Bank's latest ease-of-doing-business global rankings in 2018, a year after it had jumped 30 places. The World Bank’s ‘Doing Business 2019: Training for Reform’ report, released on Wednesday, showed India's rank in ease of doing business jump up from the 100th place among 190 countries. India had broken into the club of 100 nations easiest to conduct business in last year when it managed to jump 30 places from the 130th position. READ MORE

NEWS ALERT Finance Minister Arun Jaitley: GST collections for October 2018 have crossed Rs. 1 lakh crore.
Interview of the day There's urgency to improve credit assessment: Mirae Asset's Swarup Mohanty

Valuations have moderated and provide fa avorable risk-reward for long-term investors, says Swarup Mohanty, CEO, Mirae Asset Management. In an interview with Ashley Coutinho, Mohanty says liquidity in the bond markets, earnings trend over the next few quarters and political news flow in run-up to state and central government elections will be factors to watch out for. Click here to read the interview
swarup mohanty, ceo, Mirae Asset Management

United Spirits surges 8% on strong September quarter results

Shares of India's largest alcoholic beverage company United Spirits (USL) has surged 8% to Rs 620, extending its past three days 11% gain on the BSE, after the company posted a strong 69% jumped in net profit at Rs 2.59 billion September quarter (Q2FY19). It had posted a net profit of Rs 1.53 billion in Q2FY18. READ MORE
Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 34,351.13 -90.92 -0.26
S&P BSE SENSEX 50 10,842.74 -28.75 -0.26
S&P BSE SENSEX Next 50 31,386.34 +72.11 +0.23
S&P BSE 100 10,641.45 -20.27 -0.19
S&P BSE Bharat 22 Index 3,423.03 +29.67 +0.87

Kalpataru Power rallies 11% on post Q2 results

Shares of Kalpataru Power Transmission (KPTL) rallied 11% to Rs 360 on the BSE in early morning trade after the company reported a 28% year-on-year (Y-o-Y) jump in its standalone net profit at Rs 914 million in September quarter (Q2FY19). READ MORE

PMI manufacturing at robust 53.1 as new business orders, employment rise

The country's manufacturing sector activity improved in October, as firms scaled up production and employment levels amid strong rise in new business order flows, a monthly survey said Thursday.
The Nikkei India Manufacturing Purchasing Managers' Index strengthened from 52.2 in September to 53.1 in October as new orders and production increased at the quickest rate in four months. READ MORE

As many as 44 securities hit 52-week lows on NSE

21STCENMGM 21st Century Management Services Limited 22.25 22.70 31-Oct-2018 22.95 22.70 0.25 1.10
8KMILES 8K Miles Software Services Limited 62.20 68.30 31-Oct-2018 69.50 68.30 1.20 1.76
AGARIND Agarwal Industrial Corporation Limited 175.55 180.00 25-Oct-2018 185.00 187.70 -2.70 -1.44
AIFL Ashapura Intimates Fashion Limited 79.50 83.65 31-Oct-2018 79.50 83.65 -4.15 -4.96
ANTGRAPHIC Antarctica Limited 0.45 0.45 26-Oct-2018 0.50 .50 0.00 0.00

(Click here for the full list)
Liquidity crisis: Centre, RBI see eye to eye in 'public interest'
The government and the central bank had disagreed on several issues such as dividend transfer, capital adequacy norms, and liquidity needs of non-banking financial companies (NBFCs). READ MORE
Anand Rathi on IRB Infrastructure

With financial closure for the recently-bagged hybrid annuity projects (and anticipated for the Hapur-Moradabad BOT toll by end-CY19), the construction commencement (sooner than later) would benefit the EPC vertical. Comparable gross toll collection is rising, though the recent growth momentum is definitely underwhelming. Though we are optimistic about the EPC vertical for the next two years at least, subdued gross toll collection is a concern. If the situation persists, it could have a long-lasting impact on asset valuation and, thus, the asset-churn story. However, valuations after the recent stock-price fall have turned appealing. Thus, we raise our rating to a Buy.
Devangshu Datta Auto numbers have a story to tell
The Q2 (July-Sep 2018) results are hard to analyse, due to the unusual activity during July-Sep 2017, a year ago. The GST (goods and services tax) was launched in July 2017 and it caused a period of serious disruption. It is possible to deseasonalise repetitive events like festivals with some confidence, due to data accumulation over many years. But GST was a one-off. READ MORE
First-ever EOW-administered repaymment to NSEL investors effected

Mumbai's Economic Offences Wing administered the first-ever repayment of as much as Rs 300 million to investors of the now defunct National Spot Exchange (NSEL). The EOW is one of several agencies probing the Rs 56-billion default in 2013 to  investors. READ MORE

Going against spirit of law, taxmen deny grandfathering benefit to FPIs

In what is being deemed as going against the spirit of the law, tax authorities are avoiding issuing a nil withholding tax certificate to entities from Mauritius and Singapore that have bought shares prior to April 1, 2017.
As per the amended treaties with these countries, shares bought prior to April 1, 2017 are eligible for grandfathering and no capital gains is to be paid on sale of these shares. Capital gains on derivatives and fixed income securities also remain exempt. READ MORE

Bank of Baroda's strong Q2 results instills confidence in investors

The September quarter (Q2) results of Bank of Baroda (BoB) is among the best in recent times. PS Jayakumar, the lender's MD & CEO since October 2015, and his team have walked the talk on improving the bank’s asset quality.
While most government-owned banks (PSU Banks) have seen this metric bettering in Q2, BoB outperformed the pack with 20.6 per cent year-on-year reduction in bad-loan provisioning costs and slippages of Rs 22.8 billion coming in at seven-quarter low. READ MORE

Market Check

Index Current Pt. Change % Change
S&P BSE SENSEX 34,397.11 -44.94 -0.13
S&P BSE SENSEX 50 10,849.03 -22.46 -0.21
S&P BSE SENSEX Next 50 31,425.14 +110.91 +0.35
S&P BSE 100 10,648.54 -13.18 -0.12
S&P BSE Bharat 22 Index 3,429.11 +35.75 +1.05

ICICI Securities on Larsen & Toubro
L&T is consistently delivering in terms of bagging orders, strong execution of backlog and at the same time improving the quality of its balance sheet thereby generating reasonable cash flows. PAT CAGR of 20% over FY18-20 coupled with improvement in return ratios should rerate the stock as the expected performance is among the best in the capital goods space. We assign a target price of Rs 1,655 with a BUY rating on the stock.
Larsen & Toubro gains 6% as Q2 profit beats estimate

Shares of Larsen & Toubro ((L&T) were up by 6% at Rs 1,379 per share on the BSE in early morning trade after the company reported 23% year-on-year (Y-o-Y) jump in its consolidated net profit at Rs 22.30 billion in September quarter (Q2FY19). The consolidated gross revenue during the quarter grew 21% at Rs 320.81 billion on a Y-o-Y basis. READ MORE

Challenging demand outlook may derail Tata Motor's JLR turnaround plan

Demand issues in China continue to weigh on Tata Motors forcing the company to cut costs, curtail capital expenditure and improve its cash flow at its UK-based subsidiary Jaguar Land Rover.
The company, which reported a consolidated loss of Rs 10 billion in the September quarter, seeks to improve its performance in the second half largely on the back of a turnaround plan for JLR with gains pegged at 2.5 billion pounds over the next 18 months. READ MORE

Sectoral trend on the NSE

BSE Sensex opening gainers and losers

Market at open
At 9:15 AM, the S&P BSE Sensex was trading at 34,548, up 106 points while the broader Nifty50 was ruling at 10,412, up 26 points.
Rupee open:

Rupee opens 8 paise higher at 73.87 against US dollar against Wednesday's close of 73.95
Markets at pre-open

Index Current Pt. Change % Change
S&P BSE SENSEX 34,601.57 +159.52 +0.46
S&P BSE SENSEX 50 10,936.78 +65.29 +0.60
S&P BSE SENSEX Next 50 31,440.53 +126.30 +0.40
S&P BSE 100 10,722.68 +60.96 +0.57
S&P BSE Bharat 22 Index 3,426.22 +32.86 +0.97

Motilal Oswal on Tata Motors
We cut our FY19/20 estimates by 79%/36% to factor in uncertainty in JLR volumes in key markets, which is reflecting in lowering of guidance by management. For FY20, we are building in a moderate recovery, with EBIT margin of nearly 2% (v/s guidance of 4-7%). Maintain Buy with a target price of nearly Rs 248 [Sept-20 SOTP].
Coal India share sale garners just Rs 42 bn, much less than govt's target
The Coal India share sale on Wednesday garnered bids worth only Rs 42 billion, less than a third of what the government had targeted. The centre was looking to divest shares worth over Rs 148 billion in the coal miner as a part of its ambitious Rs 800-billion disinvestment programme for 2018-19. READ MORE
Nifty outlook by Prabhudas Lilladher

Nifty has made a good recovery from the bottom made at 10000 levels to bounce and rise up to almost 10400 levels, however, the upward movement conviction can be maintained only a close above 10500-10550 levels and as for Bank Nifty, a breach of the level of 25900 would be crucial for further development. However, the support for the day is seen at 34150/10300 while resistance is seen at 34720/10450. Bank Nifty would have a range of 24850-25430. READ MORE
Markets rally as rift between RBI, govt eases; global cues aid sentiment

Stocks rallied on Wednesday after the government moved to ease concerns over the independence of the Reserve Bank of India (RBI). Buzz that the government was mulling fresh steps to ease liquidity concerns triggered gains in the shares of non-banking financial companies (NBFCs) and banks. Also, positive global cues, following sharp overnight gains in the US markets, aided sentiment. READ MORE
SGX Nifty

The SGX Nifty was at 10,420, up 0.32% from the previous close.
Oil prices

Oil prices fell early on Thursday, extending losses in previous sessions, amid signs of rising supply and growing concerns that demand might weaken on the prospect of a global economic slowdown.
The Brent crude January futures contract lost 44 cents, or 0.32 per cent, to trade at $74.72 per barrel. West Texas Intermediate (WTI) crude futures fell 46 cents to $65.01 a barrel. Both benchmarks posted their worst monthly performance since July 2016 on Wednesday, with Brent falling 8.8 per cent for the month and WTI dropping 10.9 per cent.

Asian Markets

Asian stocks rose on Thursday as bruised investor sentiment got some relief from another robust Wall Street session thanks to upbeat corporate earnings, while the dollar hovered near a 16-month high on further signs of strength in the world's largest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.15 per cent, adding to modest gains the previous day, though this came after a brutal October month. South Korea's KOSPI put on 0.5 per cent while Japan's Nikkei slipped 0.3 per cent following two days of big gains.
Wall Street

US stocks rebounded for a second day on Wednesday as investors snapped up beaten-down technology and internet favourites and strong company results lifted spirits, even as the S&P 500 closed out its worst month in seven years.

The S&P 500 lost 6.9 per cent in October, while the Nasdaq shed 9.2 per cent, its biggest monthly loss since November 2008.

The Dow Jones Industrial Average rose 241.12 points, or 0.97 per cent, to 25,115.76, the S&P 500 gained 29.11 points, or 1.09 per cent, to 2,711.74 and the Nasdaq Composite added 144.25 points, or 2.01 per cent, to 7,305.90.
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