Sensex, Nifty End Lower After Biggest Rally in Five Months; Idea, BHEL Top Gainers

Closing Bell

Indian shares fluctuated between gains and losses but closed the day lower as FMCG, banks and automakers dropped while telecom and utility stocks advanced.

The S&P BSE Sensex fell 0.2 percent to 27,984 while the NSE Nifty lost 0.2 percent as well 8,659. The market breadth was skewed in favour of the buyers at 898 advances, 726 declines and 260 stocks remaining unchanged.

Both these indices had risen 1.9 percent on Tuesday, the steepest climb among Asian gauges, as global funds turned net buyers of domestic shares for the first time in five days. Also helping was the growing speculation that the U.S. Fed will boost interest rates in December then not rush further increases as the world’s largest economy remains mixed.

Global funds bought Rs 345 crore ($52 million) of local shares on Tuesday, according to exchange data. That followed withdrawals of $372 million in previous four days, the longest stretch of outlfows in more than three weeks. Local insitiution investors bought net Rs 173 crore worth of shares, exchange data showed.

Investors are also focused on the ongoing earnings season for clues if growth in profitability can justify the lofty valuations. Reliance Industries, the owner of the world’s largest refining complex, is among the companies due to report this week.

(With inputs from Bloomberg News)

ECE Industries Near 8-Year High After Plan to Delist Shares

Shares of the B.K. Birla Group firm rose as much as 13.6 percent to Rs 358 after it announced it will seek shareholder’s approval for delisting of shares from the NSE.

Nifty Slips Below 8,650

The benchmark index slipped below the 8,650 mark tracking cues from a weak opening in the European equity markets. FMCG company ITC was dragging the index lower as the top loser on the Nifty.

Some of the other losers on the Nifty included ICICI Bank (down 2.2 percent), Tata Motors (down 1.4 percent), Tata Motors DVR (down 1.6 percent) and Hero MotoCorp (down 1.1 percent)

Indraprastha Gas Jumps 4% as India Tribunal Seeks View on CNG as Main Auto Fuel

Shares of the city gas distributor rose 4 percent after a National Green Tribunal sought views from state government – including Delhi, Punjab, Haryana, Rajasthan and Uttar Pradesh – on making CNG as the main fuel for automobiles. (Full report HERE)

FMCG, Autos Drag on GST Rate Woes

Shares of fast moving consumer goods firms and automakers topped the worst performing list. Yesterday, Revenue Secretary Hasmukh Adhia told reporters that the council is considering 12 percent and 18 percent for the standard GST rate, a low rate of 6 percent and a high rate of 26 percent.

He added that a cess on tobacco, paan masala and luxury cars can be used to compensate states, and that the clean environment cess will also be included for compensating states.

Top Losers

• ITC (-1.6% to Rs 241)
• M&M (-1.2% to Rs 1,315)
• Tata Motors (-0.8% to Rs 548)
• HUL (-0.8% to Rs 847)
• Maruti Suzuki (-0.4% to Rs 5,603)
• Hero Motocorp (-1.1% to Rs 3,373)
• Bajaj Auto (-0.3% to Rs 2,782)

Endurance Tech Debuts at 21% Premium

Shares of the auto component maker listed at Rs 570 a piece, a 21 percent premium to its issue price.

The issue, which opened for subscription during October 5-7, was oversubscribed 43.84 times. The reserved portion of qualified institutional buyers oversubscribed 53.43 times and non-institutional investors 127.07 times.

It has fixed issue price at the higher end of price band of Rs 467-472 per share. Soon after listing, the stock rose as much as 4 percent to Rs 599 on the BSE.

Opening Bell

Indian shares swung between gains and losses as investors looked ahead to domestic corporate earnings reports while they continued to gauge the likelihood of a Federal Reserve rate hike.

The S&P BSE Sensex was little changed at 28,045 and so was the NSE Nifty at 8,678. The market breadth was encouraging at 998 advances, 442 declines and 423 stocks remaining unchanged.

Movers & Shakers: Hindustan Zinc, ICICI Bank, Havells India And More

Money Market Heads Up

Stocks to Watch

• Apollo Tyres: Holders approve raising up to Rs 750 crore via NCDs
• Axis Bank, ICICI Bank: Essar said to pay back ~$300 million combined to ICICI Bank, Axis Bank
• Hatsun Agro: September quarter profit Rs 32.16 crore versus Rs 31.04 crore
• Havells India: Q2 profit Rs 146 crore versus estimated Rs 153 crore
• Jyothy Lab: To consider NCD issue at October 25 meeting
• Mahindra & Mahindra: To unveil new electric car Friday
• Parsvnath Developers: Court directs unit to deposit Rs 10 crore by December 10
• Reliance Industries: To shut Jamnagar FCCU about 5 weeks for maintenance
• Sterling Tools: To consider stock split on November 5
• SpiceJet: To operate 334 daily flights this winter, inducts 3 Boeing 737-800s
• Vedanta: Says work at unit’s mine affected by union strike
• GMR said in talks for unit stake sale (Mint)

For a complete list of stocks to watch, click HERE

Earnings To Watch

• Aptech
• Agro Tech Foods
• Hindustan Zinc
• Mangalore Chemicals & Fertilizers
• Kirloskar Industries
• KPIT Technologies
• NIIT
• RBL Bank
• Quess Corp
• TCI Developers
• Thirumalai Chemicals
• Tata Coffee

IPO Watch

• PNB Housing Finance seeks to raise Rs 3,000 crore via IPO starting October 25
• Endurance Technologies shares to list on NSE/BSE after IPO gets 43.8 times demand at Rs 472 a share.

• India panel considering 12 percent and 18 percent for standard GST rates: Adhia; one lower rate of 6 percent also being considered

India to ensure GST rates aren’t inflationary, Jaitley says

• Monetary Policy Committee minutes suggest room for more rate cuts (Full report HERE)

• India set to surpass U.K. as the world’s fifth largest economy
• India revises rules related to vehicle emission disclosure
• Rains, unrest slow India oil demand first time in 2-years
• Sporton: Expect strong thermal, coking coal prices next 2 quarters
• Amazon, Facebook seek Indian cricket league streaming rights
• IATA expects airline passenger numbers to double by 2035
• Sovereign gold bonds to be tradable from today

• India Inc in deal-making mode; mergers & acquisitions lead the way (Details HERE)
• Global funds buy Rs 345 crore of local stocks; domestic funds buy Rs 173 crore yesterday: Provisional data
• Essar said to prepare $2.1 billion StanChart loan repayment
• VTB Capital plans to boost gold purchases from overseas miners
• Government extends deadline to bid for small oil and gas fields
• COAI asks telecom regulator to defer decision on interconnect usage charges.

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, edged 0.1 percent higher to 8,680.

Asian stocks held gains today morning, after data added to evidence that the Chinese economy has stabilised. A gauge of the greenback’s strength retreated for a third day as South Korea’s won led gains among major currencies.

Crude oil approached $51 a barrel after industry data showed American supplies fell.

U.S. stocks rose the most in two weeks on Tuesday, amid corporate earnings results and speculation that the economy is strong enough to cope with the gradual pace of monetary tightening indicated by policy makers.

Data indicated that the cost of living in the U.S. rose at the fastest pace in five months, a sign inflation is getting closer to the Federal Reserve’s target. A separate report showed confidence among homebuilders cooled in October from an 11-month high, reflecting a pause in the market for single-family houses.

The odds of a December move are 63 percent, slipping from 66 percent yesterday, though up 10 percentage points from the end of last month.