Sensex, Nifty Match Second-Best Run Of 2019 On Earnings Optimism 

Indian equity benchmarks ended marginally higher after a volatile trade as gains in HDFC Bank Ltd. and IndusInd Bank Ltd. were offset by losses in Tata Consultancy Services Ltd. and Larsen & Toubro Ltd.

The S&P BSE Sensex rose 35 points or 0.09 percent to 40,165 and the NSE Nifty 50 rose 0.11 percent to 11,890.60. The broader markets represented by the NSE Nifty 500 Index rose 0.15 percent.

Fifteen out of the 26 Nifty companies that have reported earnings so far this season have beaten analyst estimates, two have matched and eight have missed, according to Bloomberg report.

“The earnings helped by improving asset quality at major banks and signs of bottoming out of consumer spending with festive season,” Bloomberg reported quoting BNP Paribas' Abhiram Eleswarapu.

“Potential triggers for the second half of the year include a good monsoon and low raw material prices,” Eleswarapu told Bloomberg.

The market breadth was tilted in favour of buyers. About 1,059 stocks advanced and 750 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Media Index’s 7.7 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.67 percent.

TVS Motor Company Ltd. sold 3.23 lakh units last month a fall of 19 percent from October 2018, the Chennai-based company said in a stock exchange filing.

Key Sales Highlights (YoY)

• Two-wheeler sales fell 20 percent to 3.08 lakh units.
• Domestic two-wheeler sales fell 25 percent to 2.52 lakh units.
• Scooter sales fell 20 percent to 1.21 lakh units.
• Motorcycle sales fell 17 percent to 2.53 lakh units.
• Three-wheeler sales rose 8 percent to 15,207 units.
• Two-wheeler exports rose 22 percent to 55,477 units.
• Overall exports rose 20 percent to 69,339 units.

The stock traded 4.8 percent lower at Rs 463.20 after the announcement.

About 15.2 lakh shares of Bharti Infratel changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Hindustan Media

• Stock rose as much as 19.9 percent to Rs 89.25.
• Trading volume was 50 times its 20-day average.

Laurus Labs

• Stock rose as much as 13.3 percent to Rs 418.80.
• Trading volume was 40 times its 20-day average.

Motilal Oswal Financial Services

• Stock rose as much as 13.9 percent to Rs 707.60.
• Trading volume was 19 times its 20-day average.

Uniply Industries

• Stock fell as much as 19.9 percent to Rs 33.75.
• Trading volume was 14 times its 20-day average.

Number of vehicles sold by busmaker fell 28 percent to 515 units, according to its exchange notification.

Shares of the company surged nearly 3.4 percent intraday to Rs 567 apiece after the sales announcement.

Shares of Kansai Nerolac rose as much as 3.2 percent to Rs 573 after announcing September quarter results.

Key Earnings Highlights (Q2, YoY)

• Revenue down 2.9 percent to Rs 1,325.55 crore.
• Net profit up 59.4 percent to Rs 190.77 crore.
• Ebitda up 11.7 percent at Rs 218.88 crore.
• Margin at 16.5 percent versus 14.3 percent.

Most Asian stocks rose and European and U.S. futures pushed higher Friday as investors weighed better-than-expected Chinese manufacturing data against uncertainty about an interim U.S.-China trade deal.

• The MSCI Asia Pacific Index rose 0.3 percent.
• Japan’s Topix index was little changed.
• Hong Kong’s Hang Seng rose 0.6 percent.
• The Shanghai Composite added 0.9 percent.
• South Korea’s Kospi index advanced 0.8 percent.
• Australia’s S&P/ASX 200 Index was little changed.
• Futures on the S&P 500 Index rose 0.3 percent.
• Euro Stoxx 50 futures added 0.2 percent.

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Source: Bloomberg

Mahindra & Mahindra Ltd.'s total sales fell 11 percent to 51,896 units in September, according to the exchange filing.

Key Highlights:

• In the Passenger Vehicles segment (which includes UVs, Cars and Vans), Mahindra's sales fell 23 percent year-on-year to 18,460 vehicles
• Commercial vehicle sales fell 3 percent to 23,582 units
• Three-wheeler segment's sales rose 4 percent to 7,151 units
• Total domestic sales fell 11 percent to 49,193 units
• Total exports fell 12 percent to 2,703 units

Shares of the Anand Mahindra-led company fell 4 percent to 582 apiece after the announcement

Tractor Sales Fall 4%

The company’s tractor sales fell 4 percent year-on-year to 45,433 units.

• Domestic tractor sales declined 4 percent to 44,646 units.
• Tractor exports fell 26 percent to 787 units.

About 12.2 lakh shares of Bharti Infratel changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Indian equity benchmarks continued to fluctuate between gains and losses.

The S&P BSE Sensex rose 0.19 percent to 40,203. and the NSE Nifty 50 rose 0.16 percent to 11,895. The broader markets represented by the NSE Nifty 500 Index rose 0.28 percent.

Ten out of 11 sectoral gauges compiled by NSE traded, higher, led by the NSE Nifty Media Index’s 4.3 percent gain. On the flipside, the NSE Nifty IT Index was the tp sectoral loser, down 0.56 percent.

Maruti Suzuki India Ltd.’s sales rose the most in 16 months in during October.

The company sold 1.22 lakh units last month, an increase of 4.5 percent from October 2018, India’s largest carmaker said in a stock exchange filing.

Key sales highlights (YoY)

• Sales of mini segment fell 13.1 percent to 28,537 units.
• Sales of compact segment rose 15.9 percent to 75,094 units.
• Sales of Ciaz fell 39 percent to 2,371 units.
• Sales of utility vehicles rose 11.3 percent to 23,108 units.
• Sales of Vans fell 26.8 percent to 10,011 units.
• Sales of Super Carry rose 12.9 percent to 2,429 units.
• Total domestic passenger vehicle sales rose 2.3 percent to 1,39,121 units.
• Total domestic sales rose 4.5 percent to 1,44,277 units.
• Total exports rose 5.7 percent to 9,158 units.

The sales of new WagonR are reported under compact segment and the sales number of old discontinued WagonR are however, reported in the mini sub-segment effective February 2019, the company said.

Ashok Leyland Ltd.’s sales fell 35 percent to 9,857 units in October, according to its stock exchange filing.

Key Sales Highlights (YoY)

• Domestic medium and heavy commercial truck sales fell 59 percent to 3,335 units.
• Domestic medium and heavy commercial bus sales rose 31 percent to 1,230 units.
• Total domestic medium and heavy commercial vehicle sales declined 50 percent to 4,565 units.
• Domestic light commercial vehicle sales fell 15 percent to 4,509 units.
• Total domestic vehicle sales fell 37 percent to 9,079 units.

Sales Including Exports (YoY)

• Total medium and heavy commercial truck sales fell 59 percent to 3,526 units.
• Total medium and heavy commercial bus sales rose 31 percent to 1,600 units.
• Total medium and heavy commercial vehicle sales fell 48 percent to 5,126 units.
• Total light commercial vehicle sales fell 35 percent to 9,857 units.

Shares of the truck and bus maker fell as much as 1.4 percent to Rs 75.70 after the announcement.

Shares of Dr. Reddy’s Laboratories fluctuated between gains and losses to trade 0.8 percent higher at Rs 2,806.

Key Earnings Highlights (Q2, YoY)

• Revenue up 26 percent to Rs 4,800 crore.
• Net profit up 117 percent to Rs 1,092 crore.
• Ebitda up 90 percent to Rs 1,408 crore.
• Margin at 29.3 percent versus 19.5 percent.

Nifty’s 11,900 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Nov. 7, fell 14.3 percent to Rs 71.25. Over 9.52 lakh shares added to the open interest which stood at over 23.26 lakh shares.

The Markit Manufacturing Purchasing Managers’ Index fell to 50.6 last month from 51.4 in September, according to a statement. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Indian equity benchmarks edged higher after fluctuating between gains and losses in the opening trade.

The S&P BSE Sensex rose 0.12 percent to 40,171 as of 10 a.m. and the NSE Nifty 50 rose 0.1 percent to 11,888. The broader markets represented by the NSE Nifty 500 Index rose 0.26 percent.

Shares of Bajaj Auto fluctuated between gains and losses to trade little changed at Rs 3,272 after the company announced its October sales data.

The company's total sales fell 9 percent year-on-year to 4,63,208 vehicles last month, according to its stock exchange filing.

Key Sales Highlights (YoY)

• Domestic motorcycle sales fell 14 percent to 2,42,516 units.
• Motorcycle exports rose 3 percent to 1,56,397 units.
• Total motorcycle sales fell 8 percent to 3,98,913 units.
• Domestic commercial vehicles sales declined 5 percent to 36,260 units.
• Commercial vehicles’ exports fell 21 percent to 28,035 units.
• Total commercial vehicle sales fell 13 percent to 64,295 units.
• Total domestic sales fell 13 percent to 2,78,776 units.
• Total exports fell 1 percent to 1,84,432 units.

Shares of Escorts rose as much as 2.9 percent to Rs 678.50 after the company sold 13,353 tractors last month, an increase of 1.6 percent from the year-ago period, according to its exchange filing.

Key Highlights (YoY)

• Domestic sales rose 1.3 percent to 13,034 units.
• Export jumped 16.8 percent to 319 units.

Catch all the live updates on October auto sales here.

Shares of Laurus Labs rose as much as 13.3 percent, the most since February 2017, to Rs 418.80, the highest in over a year after the company announced its September quarter results.

Key Earnings Highlights (Q2, YoY)

• Revenue rose 21.1 percent to Rs 712.4 crore.
• Net profit rose 3.5 times to Rs 56.5 crore.
• Ebitda rose 82.3 percent to Rs 137.8 crore.
• Margin stood at 19.3 percent versus 12.9 percent.

Indian equity benchmarks fluctuated between gains and losses in the opening traded.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,185 and 11,887 respectively. The broader markets represented by the NSE Nifty 500 Index rose 0.21 percent.

The market breadth was tilted in favour of buyers. About 882 stocks advanced and 464 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 0.95 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.63 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.08 percent to 70.98 against the greenback.

Index Futures

• Nifty November futures closed at 11914.8, premium of 37 points.
• Nifty futures across series open interest up 7.4 percent, adds 12 lakh shares in open interest.
• Nifty Bank November futures closed at 30,107.5, premium of 41 points.
• Nifty Bank futures across series open interest down 8.6 percent, sheds 1.1 lakh shares in open interest.
• Rollover: Nifty 84 percent, Nifty Bank 64 percent.

Options

• Nifty PCR at 1.41 versus 1.48 (across all series).

Nifty Weekly Expiry: Nov. 7

• Max open interest on call side at 12,000 (14 lakh shares)
• Max open interest on call side at 12,000 (14 lakh shares).
• Open interest addition seen at 11,900C (+9.6 lakh shares), 11,800P (+9.3 lakh shares).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 11,800 (16 lakh shares).
• Max open interest on put side at 11,600 (17.4 lakh shares).

• MCX to meet ICICI Securities, Kontiki Capital and other investors from Nov. 1-8
• Graphite India to meet Polaris Capital Management on Nov. 1

• IST ex-date for share split from Rs 10 per share to Rs 5 per share.
• Career Point to move into ASM Framework.
• Automotive Stampings and Assemblies, Kirloskar Electric Company to move into short term ASM Framework.
• Bharat Wire Ropes, Edelweiss Financial Services, Bliss GVS Pharma, Reliance Power, Zee Learn, Sharda Motor Industries, Shemaroo Entertainment to move out of short term ASM Framework.
• Strides Pharma Science price band revised to 20 percent.
• United Bank of India price band revised to 10 percent.
• SREI Infrastructure Finance price band revised to 5 percent.

• Automakers will be in focus as the companies are set to announce September sales data.
• Bharti Airtel: S&P has placed to company on Watch Negative on adverse Supreme Court Ruling, according to Bloomberg report.
• Indian Oil Corporation will undertake partial shutdown of Guwahati, Bongaigaon refineries in January and February. Refinery shutdowns are being taken for fuel upgrade and maintenance, Bloomberg reported.
• Vodafone Idea clarified that it is not aware of the news of Vodafone Group exiting from the India operations and denied that the company has gone to its lenders for a debt recast.
• SRF has commissioned and capitalised a facility to produce agrochemical intermediates at Rs 166 crore. The company said that there has been a cost overrun in the project due to change in the original design and installation of additional effluent treatment equipment, which was earlier estimated at Rs 140 crore. SRF has also commissioned a facility to enhance HFC capacity to 34,500 TPA from 17,500 MTPA at a cost of Rs 477 crore, which has earlier estimated at Rs 356 crore.
• IndusInd Bank has said that it has finalised the potential candidate for the position of managing director and chief executive officer who will take over the aforementioned position from April 2020. On the receipt of Reserve Bank of India’s approval, the bank will make the required disclosure to the exchanges. The current MD and CEO of IndusInd Bank, Romesh Sobti will retire in March 2020.
• Sanofi India will lower the price of Rifapentine, a critically important drug used to prevent Tuberculosis, as a part of its agreement with Unitaid, the Global Fund to Fight AIDS, Tuberculosis and Malaria, according to PTI report.
• HCL Technologies has launched a dedicated Google Cloud Business Unit to accelerate enterprise cloud adoption.
• Bajaj Auto and TVS Motors have amicably settled a decade old patent dispute. Both the companies have mutually agreed to withdraw the pending proceeding release each other from all liabilities and actions.
• Ahluwalia Contracts received three construction orders worth Rs 521.7 crore. Total order inflow during 2019-20 stands at Rs 1,449.3 crore.
• Manappuram Finance: Board approved issuing non-convertible debentures up to Rs 250 crore. The committee will consider the proposed allotment on Nov. 7.
• GTPL Hathway: Acacia Partners increased their stake to 5.89 percent from 3.97 percent in the company.
• Sical Logistics: Board approved proposal to seek approval of the shareholders for the disinvestment of the company’s units.
• Prakash Industries has expanded the installed capacity in its Steel Melting Shop by commissioning of 4 new energy efficient Induction Furnaces. The enhanced capacity now stands at 1.176 million tons per annum.
• Aster DM Healthcare to acquire 80 percent stake in Dubai’s Premium Healthcare for AED 9 Million or Rs 17.4 crore approximately.
• Jai Prakash Power Ventures: The board approved conversion of part of outstanding loans of Canara Bank amounting to Rs 12.02 crore and outstanding loans of Corporation Bank worth Rs 22.5 crore into compulsory redeemable preference shares, respectively. The company will also restructure its Foreign Currency Convertible Bonds and will declare distribution from annual standalone profits of an amount equivalent to 50 percent of its free cash flow in form of dividend payments.
• Shree Renuka Sugars: Board will consider merger of its arm Gokak Sugars with self on Nov. 10.
• Quick Heal Technologies to make a strategic investment of $300,00 in Israel’s based cybersecurity startup L7 Defense.
• Allahabad Bank has revised its external benchmark rates- RBI Repo Rate from 5.4 percent to 5.15 percent and Three Month MIBOR from 6.5 percent to 6.15 percent, with effect from Nov. 1.
• Punjab National Bank has reduced MCLR by 10 basis points across various tenors with effect from Nov. 1. One month MCLR at 7.8 percent and one-year MCLR at 8.15 percent.

Nifty Earnings To Watch

• Dr. Reddy's Laboratories
• Yes Bank

Other Earnings To Watch

• JSW Energy
• Central Bank
• Bank of India
• Kansai Nerolac Paints
• Karur Vysya Bank
• Mishra Dhatu Nigam
• Bank of India
• Butterfly Gandhimathi Appliances
• Cigniti Technologies
• GIC Housing Finance
• Hawkins Cookers
• Hindustan Media Ventures
• JK Lakshmi Cement
• LGB Forge
• V-Mart Retail

Earnings Reaction To Watch

Thirumalai Chemicals (Q2, YoY)

• Revenue fell 26.1 percent to Rs 268.6 crore.
• Net profit fell 81.4 percent to Rs 9.9 crore.
• Ebitda fell 74.1 percent to Rs 22.8 crore.
• Margin stood at 8.5 percent versus 24.2 percent.

Spandana Sphoorty Financial (Q2, YoY)

• Net Interest Income rose 26.2 percent to Rs 202.8 crore.
• Net profit fell 37.9 percent to Rs 45.7 crore.
• Deferred Tax Expense rose 3.6 times to Rs 144.8 crore.

Laurus Labs (Q2, YoY)

• Revenue rose 21.1 percent to Rs 712.4 crore.
• Net profit rose 3.5 times to Rs 56.5 crore.
• Ebitda rose 82.3 percent to Rs 137.8 crore.
• Margin stood at 19.3 percent versus 12.9 percent.

Blue Dart Express (Q2, YoY)

• Revenue flat at Rs 802.2 crore versus Rs 800.2 crore.
• Net profit fell 35.1 percent to Rs 14.6 crore.
• Ebitda rose 87.1 percent to Rs 126.5 crore.
• Margin stood at 15.8 percent versus 8.4 percent.

• U.S. stocks fell as weak manufacturing data and renewed concern on trade rattled markets adjusting to the Federal Reserve’s signal that it’s done easing.
• Oil fell for a third day as a U.S. government report showed a bigger-than-expected build in domestic crude supplies and Chile cancelled a summit where the U.S. and China were expected to sign a preliminary trade accord.

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Indian equity benchmarks are set to open higher

The S&P BSE Sensex rose 0.45 percent to 40,294 during the pre-market trade and the NSE Nifty 50 rose 0.25 percent to 11,908.60.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.04 percent to 11,922.50 as of 8:20 a.m.

Stocks were mixed in Asia as investors mulled uncertainty about an interim U.S.-China trade deal and better-than-expected Chinese manufacturing data.

Equities in Japan and China pared losses and S&P 500 edged up after the Caixin manufacturing gauge unexpectedly climbed. Hong Kong shares reversed losses. Equities in Seoul shrugged off the latest plunge in South Korean exports.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.