Sensex, Nifty Halt Losing Streak On U.S. Election Optimism; Lupin Leads Drugmakers Higher
The early indicator SGX Nifty gained 0.8 percent to 8,510.
Closing Bell
Indian shares rebounded from their worst week in a month tracking a relief rally in global equities after Hillary Clinton’s chances in the U.S. presidential elections improved.
The S&P BSE Sensex snapped a five-day losing streak to end 0.7 percent higher at 27,458. While the NSE Nifty failed to hold on the 8,500-mark, it managed close with a 0.7 percent gain at 8,497.
The market breadth was in favour of the buyers at 1,154 advances, 472 declined and 257 stocks remaining unchanged.
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Shree Cement Erases Gains After Q2 Net Misses Mark
Shares of the cement maker shed most of its gains to trade higher by little over 0.3 percent after reporting a miss in its second quarter earnings.
The South-based firm reported a net profit of Rs 292 crore for quarter-ended September, compared to Rs 357 crore estimated by analysts Bloomberg polled. Its net sales also missed the mark at Rs 2,250 crore for the three-month period.
Rupee’s Reign as Top Asia Carry Trade Seen Riding Out U.S. Risks
The rupee’s Sharpe ratio, which gauges returns from borrowing in dollars to buy the currency adjusted for price swings, was 2.2 in the past three months, the most among 11 Asian exchange rates tracked by Bloomberg.
The rupee is seen delivering returns of 7.3 percent by the end of 2017, the highest in Asia after Indonesia’s rupiah. Scotiabank, Goldman Sachs Group Inc. and BlackRock Inc. are among bulls on Indian fixed-income bets.
To read the full report, click HERE
Godrej Consumer Swings On Slight Q2 Earnings Miss
Shares of the soap to mosquito repellent maker fluctuated between gains and losses after reporting its second quarter earnings.
Its net profit rose to Rs 318 crore in quarter-ended September, from Rs 221.43 crore in the corresponding quarter last year. A Bloomberg consensus estimate of analysts had pegged the profit to come in at Rs 333 crore.
Total income for the quarter grew 11 percent to Rs 2,439 crore from Rs 2,197 crore in the same quarter last year. This figure is slightly below the Bloomberg consensus estimate of Rs 2,462 crore.
More details HERE
Dalmia Bharat Jumps On Merger Plans
Shares of the cement maker gained 2.1 percent to Rs 2031 after its boards of Dalmia Bharat and OCL India Ltd decided to merge the two entities. The merged entity will have a cement capacity of 25 million tonne spread across eastern and southern India, making it the fourth largest cement maker in the country.
The share swap ratio for the merger will be 2:1 for OCL.
To know more about the merger and what it means for shareholders, click HERE
Earnings Reaction Watch
- Amara Raja Batteries rose 2.1 percent to Rs 1,029; Q2 net Rs 136 crore versus Rs 123 crore
- Berger Paints gained 2 percent to Rs 264; Q2 net Rs 139 crore versus est. Rs 121 crore
- CARE Ratings jumped 4.3 percent to Rs 1,420; Q2 net Rs 43.23 crore; est. Rs 42.2 crore, to pay second interim dividend of Rs 6 a share
- Central Bank of India down 1.1 percent to Rs 87; Q2 loss Rs 642 crore versus profit Rs 113 crore
- Gati rose 1.9 percent to Rs 140; Q2 group net Rs 5.8 crore versus Rs 5.79 crore
- Indian Hotels advanced 1.7 percent to Rs 114; Q2 group loss narrows to Rs 26.76 crore
- Neuland Labs jumped 5.6 percent to Rs 1,045; Q2 net Rs 10.39 crore versus Rs 6.2 crore
- Pfizer India gained as much as 5 percent; Q2 net Rs 126 crore versus Rs 82.84 crore
- Punjab National Bank jumped as much as 6.2 percent; Q2 net Rs 549 crore; GNPA 13.63% end- Sept
- Radico Khaitan rose 4.5 percent to Rs 144; Q2 profit Rs 22.26 crore versus Rs 17.53 crore
- Union Bank of India gained 2.2 percent to Rs 137; Q2 net Rs 177 crore versus est. Rs 285 crore
Opening Bell
Indian shares snapped a five-day losing streak amid a rebound in Asian equities after the FBI absolved U.S. presidential hopeful Hillary Clinton of any criminal wrongdoing in her handling of e-mails as secretary of state.
The S&P BSE Sensex climbed 0.8 percent to 27,493 while the NSE Nifty gained 0.8 percent as well to scale back above the 8,500-mark. This is the two key indices biggest single-day jump since October 18.
The market breadth was encouraging at 1288 advances, 210 declines and 367 stocks remaining unchanged.
The S&P Heathcare index, which plunged 8 percent last week, climbed 2 percent with Lupin Ltd. gaining more than 5 percent. ITC Ltd., the largest tobacco company company, paced a rally among consumer companies while SBI added 1.6 percent.
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Movers & Shakers: Reliance Industries, Dalmia Bharat, ICICI Bank And More
Money Markets Heads Up
“Nifty Unlikely to Dip Below 8,000 Even if Trump Wins”
The Nifty should manage to hold on to the 8,000-mark even if Donald Trump pulls of a surprise win against Hillary Clinton. That’s the word coming in from UR Bhat, managing director of Dalton Capital Advisors.
It is very near to the 200 day moving average and there will be a lot of buying coming is at that level. Unless there is something that simultaneously happens even in India.
To read the full interview, click HERE
Stocks to Watch
- GMR Infra: GMR Energy gets $300 million from Tenaga for 30 percent
- Lupin: Receives EIR for the Goa facility from U.S. FDA
- Sun Pharma: Pledges 1 lakh shares in favour of Kotak Securities.
- Dalmia Bharat: To merge with Odisha Cement and Dalmia Cement.
- Grasim: Gets RBI approval to raise FPI limit to 30 percent from 24 percent.
- Ricoh India: Board to consider and approve financial results for quarter-ended December 31, 2015 and for quarter and year ended March 31, 2016 on November 18.
Earnings to Watch
- ICICI Bank
- Britannia Industries
- Godrej Consumer Products
- Ceat
- GlaxoSmithKline Consumer Healthcare
- Sanofi India
- Aegis Logistics
- Shree Cements
- United Bank of India
For a complete list of stocks to watch, click here
Tata-Mistry Saga
- Nano investment written off, Tata says in response to Mistry
- Tata Sons said to be starved of information during Mistry term
- Indian Hotels independent directors express confidence in Mistry
- Mistry said to have proposed doubling dividend to Tata’s owners
- FIIs write to Tata Motors’s board expressing concerns over governance. (Economic Times)
Must Read: I just got fired: Nirmalya Kumar
Talking Points
- British Prime Ministry Theresa May flies to India to prepare ground for trade deal
- Reliance plans arbitration against India’s $1.55 billion fine
- RBI proposes rules to give foreign cos hedging flexibility
- India GST Council to meet again on Nov. 24-25, says Arun Jaitley
- India, China to hold next round of border talks in 2017
- PDVSA, ONGC to sign $318 million finance deal: Venezuela Presidency
- U.K. and India’s migration spat hints at trade woes after Brexit
- India approves 2 percent of basic pay as DA for federal government staff
- Forex reserves rise $16.6 million to $367.2 billion as of October 28
- India to buy 12 amphibious aircraft from Shinmaywa (Nikkei)
- Pakistan army replacing rangers along India border (Times of India)
- Richard Rekhy said to step down as KPMG India CEO (ET Now)
- Japan to pitch bullet trains for India rail project (Nikkei)
- Silverstone bidders said to reverse out of talks (Telegraph)
Good Morning!
The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, gained 0.8 percent to 8,510.
Asian equities climbed higher with the Mexican peso after the Federal Bureau of Investigation said it maintains the view that Hillary Clinton’s handling of her e-mails wasn’t a crime.
Gold fell with the yen and the Swiss franc as investors recalibrated their expectations of the race after the FBI’s second intervention. Bullion prices have traded in recent weeks as a barometer of Trump’s chances of winning the contest even as investors also track U.S. data to gauge the likelihood of higher interest rates.
Adding to the headwinds for bullion, the Labour Department on Friday reported that the unemployment rate fell while hourly earnings edged higher, boosting the outlook for a rate rise.
