Sensex, Nifty Clock Best Diwali Session Since 2008     

Indian equity benchmarks clocked their best Diwali session since 2008 led by gains in Infosys, ITC and Reliance Industries as economic concerns ease and earnings of the top 50 companies mostly beat or matched analyst estimates.

The S&P BSE Sensex rose 0.7 percent or 246 points to 35,238 and the NSE Nifty 50 Index climbed 0.65 percent or 68 points to 10,598.

All sector gauges compiled by BSE ended higher led by the S&P BSE Auto Index's 1 percent gain.

Mid- and small-cap shares also witnessed buying interest as the S&P BSE MidCap Index rose 0.8 percent and the S&P BSE SmallCap Index advanced 1.2 percent.

The e-commerce website operator was the top gainer in the Nifty 500 Index. The stock rose as much as 21 percent, the most in over a month, to Rs 53.

We saw a sharp break in markets in September and October and evidence suggests that it was a break in the bull market and it is likely to head higher in Samvat 2075, Market expert Ramesh Damani told BloombergQuint.

• Looking at businesses which were punished badly in the recent fall
• Casino, liquor stocks still look good bets

Election, crude, rupee are the headwinds for the market but Samavat Year 2075 would be strong due to strong fundamentals of Indian economy, Deven Choksey of KRChoksey told BloombergQuint.

• Election, crude and rupee are the headwinds in today's market.
• Samavat Year 2075 should be strong due to the strong fundamentals of the Indian economy.
• Would advise you to buy stocks based on valuations.
• Large-cap stocks are available at attractive valuations due to corrections.

Midcaps continue to remain at disadvantage at this point of time and I would advise to stick to large caps, Ajay Srivastava of Dimensions Corporate Finance told BloombergQuint.

Key highlights of the conversation:

• The feeling entering Samvat 2075 is a little somber.
• Not planning into an entire year, only uptil elections.
• Global events have impacted us substantially and domestic markets is saturated with retail participants.
• Looking into new Samvat with the retail investors saturated with investments which have done okay or not okay depending on when they entered the market.
• Challenge for today is that we won’t see the same bullishness in supply of capital, as we did last year.
• Stick to the large-cap stocks
• Use the revival of mid-caps stocks to exit out.
• Do not get tempted by mid-caps stocks, they are a trap.
• Now is the time to take concentrated portfolio bets, maximum 10-12 stocks.
• Elections do wonderfully for few industries and we should stick to those.

Markets are adjusting to lower level of fund flows and correction is done for markets and economy is set to grow, Raamdeo Agrawal of Motilal Oswal told BloombergQuint in an interview.

Key highlights of the conversation:

• Banking system usually grows two times the economy growth rate and with few private players to cater this kind of growth liquidity crunch is bound to happen
• NBFCs are good asset franchise, but weak liability franchise
• With weak NBFCs, opportunity for larger private sector banks is high
• Large asset base and wider presence give large private sector banks an edge over others
• After 10 years, serious capex cycle in India has begun
• As India is coming out of capex slump, construction and infrastructure companies will tend to benefit
• Real estate sector is still in pain; customers are happy, but the builder community is in pain

Shares of the Thrissur-based non-banking finance company rose as much as 5.87 percent to Rs 87.45 after its net profit rose 39 percent to Rs 222 crore in July-September quarter.

Key earnings highlights:

• Net interest income up 19 percent at Rs 697.1 crore versus Rs 585.8 crore
• Net profit up 39 percent at Rs 222.2 crore versus Rs 159.8 crore
• Gold loan segment revenue up 18.9 percent at Rs 868.9 crore versus Rs 730.8 crore
• Micro-finance segment revenue up 45 percent at Rs 158.6 crore versus Rs 109.4 crore

Auto stocks were witnessing good buying interest in Mahurat Trading session as the Nifty Auto Index rose 1 percent led by gains in Mahindra & Mahindra, Tata Motors, Ashok Leyland and Hero MotorCorp.

Indian equity benchmarks rose sharply in a shortened session marking the start of the new Hindu financial year, Samvat 2075.

The S&P BSE Sensex rose as much as 0.89 percent or 310 points to 35,302 and the NSE Nifty 50 Index climbed 0.82 percent or 86 points to 10,616. All the Nifty 50 stocks were trading higher.

All sector gauges compiled by BSE were trading higher led by the S&P BSE Telecom Index's 0.84 percent gain.

• HCL Technologies promoter Vama Sundari Investments acquired 5.7 lakh shares on Nov. 2.
• Chambal Fertilisers & Chemicals promoter Hindustan Times acquired 1.2 lakh shares from Nov. 2-6.
• Apar Industries promoters acquired 1.2 lakh shares on Nov. 5.
• Meghmani Organics promoters acquired 7 lakh shares from Nov. 2-5.
• Eros International Media promoter Eros Worldwide acquired 82,700 shares on Nov. 6.

(As Reported on Nov. 6)

Aditya Birla Capital (Consolidated Q2 YoY)

• Revenue up 33.1 percent at Rs 3590.5 crore versus Rs 2698 crore
• Net profit down 12 percent at Rs 197.9 crore versus Rs 224.8
• Fees & Commission Expense at Rs 181.2crore versus Rs 67.7 crore
• Premium up 39 percent at Rs 1657 crore versus Rs 1193 crore
• AAUM up 11 percent at Rs 271,556 crore versus Rs 244,609 crore
• Lending Book up 30 percent at Rs 57,945 crore versus Rs 44,675 crore

Mannapuram Finance (Consolidated Q2 YoY)

• Net interest income up 19 percent at Rs 697.1 crore versus Rs 585.8 crore
• Net profit up 39 percent at Rs 222.2 crore versus Rs 159.8 crore
• Gold loan segment revenue up 18.9 percent at Rs 868.9 crore versus Rs 730.8 crore
• Micro-finance segment revenue up 45 percent at Rs 158.6 crore versus Rs 109.4 crore

Camlin Fine Sciences (Consolidated Q2 YoY)

• Revenue up 37.8 percent at Rs 201.3 crore versus Rs 146.1 crore
• Net profit at Rs 1.3 crore versus Net Loss at Rs 4.1 crore
• Ebitda up 4.3 times at Rs 17.2 crore versus Rs 4 crore
• Margin at 8.5 percent versus 2.7 percent

• Bharti Airtel clarifies news of IPO launch in Tanzania is incorrect. The company’s UK arm ‘Airtel Africa’ plans intends to list shares on an international stock exchange for funding growth in African business. The company also communicated with the Tanzanian Government that listing of shares of Airtel Africa will not change shareholding of Airtel Tanzania or its parent company. Post IPO Airtel will still hold majority stake in Airtel Africa.
• NMDC lease deed for Donimalai Mine renewed for 20 years by Karnataka State Government for 20 years with effect from November 4.
• Power Grid board approves three investment projects for system strengthening and communications scheme for Rs 884.4 crore.
• Hero MotoCorp releases new premium motorcycle ‘Xpulse 200T’.
• Eris Lifesciences increases stake by 6.71 percent stake in Kinedex, post the acquisition the holding of the company has increased to 82.19 percent. The total consideration for this transaction was Rs 10.7cr
• NBCC signs share purchase agreement with Ministry of Health and Family Welfare for transfer entire stake of HSCC to self.
• Bank of Maharashtra revises MCLR across various tenors. Overnight MCLR at 8.10 percent and One Year MCLR at 8.75 percent.

The dollar retreated, U.S. equity futures jumped and Treasuries climbed as investors mulled the fallout from American midterm elections. European stocks rallied and Asian shares were mixed.

With Democrats winning the House of Representatives majority and Republicans clinching control of the Senate, President Donald Trump’s party loses full control of Congress. The results dim chances for any major fiscal initiative from the administration that might have pushed yields higher and strengthened the greenback.

Moves

• Futures on the S&P 500 Index climbed 0.9 percent as of 10:46 a.m. London time to the highest in three weeks.
• The Stoxx Europe 600 Index rose 1.2 percent to the highest in four weeks. The U.K.’s FTSE 100 Index rose 1.2 percent. Germany’s DAX Index rose 1.1 percent.
• The MSCI Asia Pacific Index gained 0.2 percent. The MSCI Emerging Market Index rose 0.6 percent.
• The Bloomberg Dollar Spot Index decreased 0.5 percent to the lowest in three weeks. The euro rose 0.5 percent to $1.1488. The British pound rose 0.4 percent to $1.3153. The Japanese yen jumped 0.3 percent to 113.04 per dollar.
• The yield on 10-year Treasuries sank five basis points to 3.18 percent, the biggest tumble in two weeks. Germany’s 10-year yield dipped one basis point to 0.43 percent. Britain’s 10-year yield fell two basis points to 1.527 percent.
• West Texas Intermediate crude surged 1.1 percent to $62.92 a barrel, the first advance in more than a week. Gold jumped 0.6 percent to $1,233.95 an ounce, hitting the highest in more than 16 weeks.

Foreign institutional investors turned net sellers in Samvat 2074 for the first time in 10 years.

FIIs sold Indian shares worth Rs 68,404 crore, while domestic institutional investors bought shares worth Rs 1,208 crore.

Happy Diwali!

Indian stocks are likely to start Samvat 2075 — the Hindu new year — higher after posting their least returns in three years.

The Singapore-traded SGX Nifty, an indicator of NSE Nifty 50 Index’s performance in India, rose 0.95 percent or 101 points to 10,653 as of 3:10 p.m.

Indian equities pared gains in Samvat 2074 on the back of U.S. Federal Reserve’s rate hike, growing trade tensions between the U.S. and China and a liquidity crunch in India’s credit system stemming from payment defaults at infrastructure lender IL&FS Ltd.

In Samvat 2074, the Nifty clocked smallest gains in three years as it rose 3.13 percent, data compiled by Bloomberg showed.

Investors will make ceremonial purchases in a 75-minute Mahurat trading session to mark Diwali and the beginning of Samvat 2075. The Mahurat trading session will begin at 5:15 p.m. and end at 6:30 p.m.