Sensex, Nifty Climb For 2nd Day As Earnings Pickup, U.S. Election Optimism Lift Sentiment
Asian equities extended the last session’s rebound from a seven-week low.
MARKET WRAP
Closing Bell
Indian shares extended their gains for a second straight session as investors reacted to a slew of earnings announcements, while treading cautiously ahead of the U.S. presidential election.
The S&P BSE Sensex climbed 0.4 percent to 27,591 while the NSE Nifty gained 0.5 to 8,543. The market breadth, however, was not so encouraging at 904 declines, 701 advances and 274 stocks remaining unchanged on the NSE.
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Hindalco Said to Weigh $500 Million Share Sale Amid Stock Rally
Hindalco Industries Ltd. is considering raising about $500 million through a stock sale, as India’s biggest aluminum maker seeks to cut debt amid a share-price rally this year, people with knowledge of the matter told Bloomberg News.
Any deal would follow a rally in Hindalco’s share price that has more than doubled the company’s market value this year to $5.3 billion.
To catch the full report, click HERE
Ceat Jumps Most in One-Month On Strong Q2 Earnings
Shares of the tyre maker gained as much as 7.9 percent, the most since September 30, on volumes 1.7 times of its 3-month full day average after its second quarter earnings beat street expectations.
Quick Earnings Reaction
- Bombay Dyeing fell 2.9% to Rs 52; Q2 net loss at Rs 71.21 crore versus Rs 65.64 crore YoY
- Wabco India declined 1.1% to Rs 5,469; Q2 profit Rs 47.21 crore versus estimate Rs 65.10 crore
- Multibase India jumped 12% to Rs 284; Q2 net Rs 3.45 crore versus Rs 2.18 crore
- Themis Medicare down 4.7% to Rs 608; Q2 net 7.07 crore versus Rs 4.65 crore
- Insecticides India rose as much as 6.8%; Q2 net Rs 28.68 crore versus Rs 17.99 crore YoY
- SML Isuzu gained 0.4 percent; Q2 net Rs 9.69 crore versus Rs 6.36 crore YoY
- Sanghi Industries surged 5.7% after posting Q2 profit versus loss YoY but sees profit booking soon after. The stock was down 0.3 percent at 2:58pm.
BHEL Soars After Q2 Net Profit Beats Estimates
Shares of the power equipment manufacturer rose as much as 5.4 percent after it beat street expectations with its second quarter earnings.
The state-owned firm reported a net profit of Rs 109 crore for quarter-ended September, against Rs 59.3 crore estimated by a Bloomberg poll of analysts’ estimates. It clocked net sales of Rs 6,660 crore for the three-month period, which was also higher than the Rs 6470 crore anticipated.
KEC International Q2 Beats Street; Stock Jumps
Shares of KEC International gained as much as 7.2 percent, the most since September 1, after reporting a good set of second quarter numbers.
The firm posted a net profit of Rs 65 crore for quarter-ended September, compared to Rs 28.15 crore same period last year. A Bloomberg poll of analyst estimates had pegged the profit to come in at Rs 49.1 crore.
Net sales stood at Rs 2,120 crore for the three-month period, which was also higher than the Rs 2,080 crore estimated. Its EBITDA margin came in at 8.7 percent versus 7.3 percent YoY.
Ashok Leyland Q2 Profit Jumps 71%; Stock Rises 2.7%
Shares of the truck maker gained 2.7 percent after its second quarter earnings beat street estimates.
It made a net profit of Rs 294 crore for the quarter-ended September, compared to Rs 172 crore it managed same period last year. A Bloomberg poll of analysts had estimated the profit to come in at Rs 262 crore.
The automaker also managed to beat sales expectations at Rs 4,910 crore.
For a full earnings report, click HERE
BHEL Gains Ahead of Q2 Earnings
Shares of Bharat Heavy Electricals Ltd. climbed 3.9 percent ahead of its second quarter earnings. The firm is forecast to report strong profit growth in the July to September quarter on the back of low-base effect, while sales may rise 10.8 percent powered by a pick-up in execution.
Net profit is expected to rise to Rs 59.3 crore in the second quarter of the financial year 2016-17 compared to a loss of Rs 204.9 crore in the corresponding quarter of last year, according to Bloomberg consensus estimates.
Click HERE to know more.
Gold Council Cuts India Demand Forecast to Lowest in Seven Years
Elevated gold prices and India’s push for more transparency on purchases and income disclosure will cut the nation’s demand for bullion in 2016 to its lowest in seven years, before consumption recovers in 2017, according to the World Gold Council.
Gold prices are up about a fifth this year and that has helped keep a lid on demand in world’s biggest consumer of the metal after China.
To read the full report, click HERE
China’s Exports Drop for a Seventh Month on Tepid Global Demand
China’s exports fell for a seventh month, leaving policy makers reliant on domestic growth engines to hit their economic expansion goals.
Key Points
- Overseas shipments dropped 7.3 percent from a year earlier in October in dollar terms
- Imports slipped 1.4 percent
- Trade surplus widened to $49.1 billion
- Exports to U.S. slipped 5.6 percent in October and fell 8.7 percent to EU.
- Imports from U.S. fell 6.9 percent
- Exports slipped less when measured in yuan as depreciation cushioned impact of tepid global demand
- Crude imports fell from a record
- Coal imports decreased for a second month
- Copper imports drop to lowest since February 2015 as domestic output climbed
Adani Enterprises Forms JV to Build Drones; Stock Spikes Up
Shares of the Gautam Adani backed firm erased losses and surged as much as 5.7 percent after it announced its plans to form a joint venture with Elbit Incorporated to manufacturer unmanned aerial vehicles.
Adani will hold 51 percent stake in the joint venture, while the Israel-based firm will own the rest. The new venture will be called Adani-Elbit Adavanced Systems India Limited.
Tata Motors Tops Sensex, Nifty On Credit Suisse Upgrade
Shares of the homegrown automaker surged as much as 4.9 percent, the most in two months and was the best performer on the Sensex and the Nifty indexes after a rating upgrade by broking firm Credit Suisse.
The pound’s 15 percent decline since Brexit can help drive a 50 percent increase in EBITDA per car for Tata Motors’ Jaguar and Land Rover (JLR), analysts led by Jatin Chawla wrote in a note.
Credit Suisse has raised its stock rating to outperform from neutral with a price target of Rs 720 versus Rs 510 earlier.
Read the full report HERE
ICICI Bank Hits 2-Week High After Q2 Earnings
Shares of the private sector lender gained as much as 3.1 percent to Rs 287 after its second quarter net income beat street expectations aided by the listing of its life insurance unit.
The proceeds from the IPO helped the bank offset higher bad loan provisions in the September quarter and post a record profit.
Varun Beverages Makes Tepid Debut
Varun Beverages, PepsiCo's largest franchise bottler, made its stock market debut at Rs 430 on the Bombay Stock Exchange, at a 3 percent discount to its issue price of Rs 445.
The company said it will use the Rs 1,100 crore raised via the IPO to partially repay debt that was taken for its expansion plans. (More details HERE)
Opening Bell
Indian shares extended their gains for a second straight session as the last of the opinion polls showed Hillary Clinton ahead of Donald Trump as Americans prepare to cast their ballots in the U.S. presidential election.
The S&P BSE Sensex climbed 0.3 percent to 27,552 while the NSE Nifty advanced 0.3 percent as well to 8,522. The market breadth was healthy at 1,096 advances, 370 declines and 397 stocks remaining unchanged.
Barring the S&P BSE FMCG Index (-0.3 percent), all other 18 sectoral gauges advanced on the exchange.
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Movers & Shakers: Heritage Foods, InterGlobe Aviation, ICICI Bank And More
Stocks to Watch
- Tata Metaliks: Calcutta High Court approves scheme of amalgamation of Tata Metaliks DI Pipes Ltd. with Tata Metaliks Ltd.
- Hotel Leela Ventures: High Court directs company to pay Rs 258 crore to Airports Authority of India for land leased (Mint)
- GTL Infra: Panel to take up debt conversion of $5 million into equity. (PTI)
- ICICI Bank: Q2 asset quality deteriorates, provisions spike. ADR closes higher by 6.55 percent.
- Britannia Industries: Q2 profit rises 6.8 percent, misses analyst estimates.
Money Market Heads Up
Earnings to Watch
- Earnings to Watch
- Ashok Leyland
- Bharat Forge
- Bharat Heavy Electricals (BHEL)
- Bombay Dyeing
- Entertainment Network India
- InterGlobe Aviation
- KEC International
- Mangalore Refinery & Petrochemicals
- Mcleod Russel India
- PTC India Financial Services
- Repco Home Finance
- SML Isuzu
- Tata Communications
- UFO Moviez India
- VA Tech Wabag
Offerings
Varun Beverages shares listing on BSE/NSE after IPO gets 186 percent demand last month
Talking Points
- India growth boost via road construction depends on low rates (read more here)
- India finalizing tender for Chabahar Port, says Minister Nitin Gadkari
- Tata said to avoid deeper write-downs with Thyssenkrupp deal
Also Read: Ratan Tata’s Return Tarnishes Aura of India’s Legendary Dynasty
- RBI clarifies on hedging for external commercial borrowings
- IAF gets nod to buy 83 light combat jets for Rs 52,000 crore
- India plans to allow airlines to fly foreign-registered planes
- India sugar output seen at 23.4 million tonne in 2016-17: Thiru Arooran
- Government buys back Rs 14,689 crore of bonds versus Rs 15,000 crore planned: RBI
- Court rejects Jain’s plea to withdraw Golden Tobacco offer
- I&B Ministry puts order against NDTV India on hold (PTI)
- Bigbasket said to be looking to raise $150 million next year (Mint)
- Global funds buy Rs 311 crore of local stocks; domestic funds buy Rs 780 crore Monday: Provisional data
Good Morning!
The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, gained 0.3 percent to 8,535.
Asian equities extended the last session’s rebound from a seven-week low and Mexico’s peso strengthened with opinion polls showing Hillary Clinton ahead of Donald Trump as Americans prepare to cast their ballots in the U.S. presidential election.
Safe haven assets nursed declined, with the yen near a one-week low and gold steady after its steepest slide in a month.
The election results are expected to be announced during morning trading in Asia on Wednesday, offering some prospect of calm on Tuesday as investors digest China trade data for October.
On Monday, U.S. stocks snapped a nine-day losing streak after the FBI said newly discovered emails didn’t warrant any action against the presidential candidate Clinton. The measure of market turbulence known as the VIX slid 17 percent after surging 39 percent last week.
Oil rebounded amid a broader market rally and after OPEC official said Russia, the world’s biggest energy producer, is on board with an agreement to limit crude production.