Sensex, Nifty Drift On Thin Volumes After Mumbai Hit With Power Outage

The Sensex eroded an advance of as much as 1% as the power outage disrupted trading activity, while the nation’s biggest stock exchanges continued to function normally.

The Sensex added 0.2% to 40,593 at close in Mumbai, while the NSE Nifty 50 Index rose 0.1% to 11,930. Both measures on Friday completed their best week since early June and are close to erasing year-to-date losses.

Four of the 19 sector indexes compiled by BSE Ltd. rose, led by a gauge of IT companies. Infosys Ltd. added 2.2% and contributed the most to the Sensex’s advance, while Bharti Airtel Ltd. was the biggest drag and dropped 2.3%.

• Revenue down 7% to Rs 575.6 crore
• Net profit up 43% to Rs 49.9 crore
• Ebitda up 9% to Rs 129.8 crore
• Ebitda margin at 22.6% from 19.3%
• Subscription revenue up 3% to Rs 267.7 crore
• Broadband revenue up 68% to Rs 67 crore
• EPC contract revenue at Rs 78.3 crore
• All numbers are consolidated and compared on a year-on-year basis

Shares gained as much as 194% to Rs 138.9 - the highest level since May 2018. The stock is up for the third straight day and has gained 30% during this period.

• Nifty October futures add 4.3% and 4.9 lakh shares in Open Interest.
• Nifty Bank October futures add 18.2% and 2.9 lakh shares in Open Interest.

Nifty: October 15 Expiry

• 12,000 Call: Premium up 8.4% to Rs 79.45. The contract has added 20 lakh shares in Open Interest.
• 11,900 Call: Premium down 4.5% to Rs 96.4. The contract has added 4.5 lakh shares in Open Interest.
• 12,100 Call: Premium up 12.2% to Rs 44.1. The contract has added 9.2 lakh shares in Open Interest.

Nifty Bank: October 15 Expiry

• 23,500 Call: Premium up 9.1% to Rs 271.85. The contract has added 1.26 lakh shares in Open Interest.
• 24,500 Call: Premium down 7.8% to Rs 143.5. The contract has added 4.9 lakh shares in Open Interest.
• 24,000 Call: Premium down 12.6% to Rs 294.2. The contract has added 4.4 lakh shares in Open Interest.

Tiger Global Management-backed RKSV Securities India became the second biggest broker in the country after doubling the number of its customers to 1.2 million in six months to September, Bloomberg News reports.

Top online broker Zerodha also reported a 75% growth in clients to 2.5 million, according to data compiled by the National Stock Exchange.

In comparison, traditional brokers like ICICI Securities and HDFC Securities saw meager additions.

“The golden days are still ahead,” Ravi Kuma, who co-founded RKSV Securities told Bloomberg.

“People working from home is allowing them more time to manage their finances and that is enabling us to open more accounts,” he said.

Benchmark indices in Europe have opened with a positive bias, gaining for the third straight day, as ECB dovishness is aiding risk sentiment in the market.

The Stoxx 600 has opened 0.2% higher with telecom and banking stocks leading the gains. Energy stocks are underperforming.

Asian markets have ended mixed while futures on the Dow Jones are trading little changed.

Brent Crude is trading 1% lower at $42.42 per barrel while Gold is little changed at $1,926/Oz.

Let's take a look at how European markets are trading:

• Euro Stoxx 50 up 0.2% at 3,278
• DAX up 0.3% at 13,091
• CAC up 0.1% at 4,953
• FTSE 100 down 0.2% at 6,006
• IBEX 35 up 0.2% at 6,967

Shares of the NBFC are declining in today's session after Goldman Sachs India sold close to 2% stake on Friday in large trades.

Goldman Sachs India sold 53.95 lakh shares of the company at Rs 33.08 per share, as per data available on the exchanges.

Shares fell as much as 6.2% - the most in over a month to Rs 32.3. The stock is down for the second straight day.

India's import of Gold declined 38% to 8.4 tonnes in the month of September, Bloomberg News reports citing a person with knowledge of provisional finance ministry data.

Gold imports during the same period last year stood at 13.5 tonnes while in August, it stood at 35.5 tonnes.

Imports of the yellow metal had seen a brief rebound in the preceding months, after witnessing a 95% decline in the April-June period due to the Covid-19 induced lockdowns.

Finance Ministry spokesman was did not respond to Bloomberg's call seeking a comment.

Gold import data is also compiled by the Commerce Ministry and may differ from that of the Finance Ministry.

• Top gainer on the Nifty Smallcap index
• Gains as much as 7.3% to Rs 2,010
• Biggest single-day gain in a month
• Snaps four-day losing streak
• Today's volumes are 60% below its 20-day average
• Takes support and rebounds from 50-Day Moving Average at 1,870.9
• Relative Strength Index (RSI) of the stock at 51.7
• Currently trading 7% below its 52-week high of Rs 2,119.7 on September 28, 2020
• 8 out of the 18 analysts tracking the stock have a buy recommendation; 3 sell calls
• The stock trades 9% higher than its 12-month consensus price target of Rs 1,794, implying a negative return potential

The company has informed the exchanges that it has received an export order of nearly 41,000 wheels from the U.S. and European Union Trailer Market.

The order is worth $4.12 lakh, as per the company's exchange filing and more such orders are anticipated by the company.

The statement added that the order will be executed in the month of November from the company's Chennai plant.

Shares gained as much as 2.4% to Rs 494.4, before cooling off. The stock trades at the highest level in nearly two months.

The company informed the exchanges on Friday that its promoters intend to sell stake through an Offer for Sale.

The promoter IEH FMGI Holdings will sell up to 1.21 crore shares or 21.83% stake in the OFS, it said in an exchange filing.

The floor price of the OFS has been set at Rs 342 per share which is a 21.1% discount to Friday's closing price.

The promoters intend to garner Rs 415.4 crore from the OFS, post which, their stake in the company would come down to 74.99% from 96.82% earlier.

The OFS is open for non-retail investors today while it opens tomorrow for the retail participants.

Shares are locked in a lower circuit of 5% at Rs 416.95.

Shares of the FMCG major are gaining in today's session after brokerage firm CLSA upgraded the stock to buy from outperform.

CLSA’s Rationale:

• FMCG segment is set to become a major value driver
• Long-term positives unfolding as revenue diversifies
• Expect FMCG segment to deliver an Ebitda CAGR of ~30% over FY20-23 driven by industry tailwinds, multiple margin levers & falling capex
• Value-accretive acquisitions and improving capital allocation will provide support
• Valuations are compelling with about 5% free cash flow yield, 6% dividend yield
• Possible sale of government's stake and negative regulatory newsflow can be risks

Shares gained as much as 4.4% - the most in three months, to Rs 175.2, and are up for the second straight day. The stock is the top gainer on the Nifty 50 index. CLSA has a price target of Rs 220 on the stock.

For live updates on the Power outage, click here.

• Benchmark indices gain for the eighth straight day
• Nifty up 0.5% at 11,978
• Sensex up 0.7% at 40,789
• Nifty Bank up 0.5% at 23,973
• Nifty Midcap index down 0.4%
• Nifty Smasllcap index down 0.3%
• India Volatility Index up 6.4% to 21.7
• Nifty Metal and Nifty Auto are the top sectoral laggards; down over 1% each
• Nifty I.T. is the top sectoral gainer; up 1.1%
• Nifty FMCG is the other sectoral gainer; up 0.7%
• ITC is the top Nifty gainer; up 4.1%
• JSW Steel is the top Nifty laggard; down 2.9%
• 823 stocks on the NSE are trading with gains while 889 are declining

The rupee has begun the new trading week on a subdued note after ending last week with three straight days of gains.

The currency opened at 73.10 against the U.S. Dollar as compared to Friday's close of 73.13. It was the third worst performing currency in Asia last week.

Traders will look forward to Finance Minister Nirmala Sitharaman's press conference at 12:30 P.M. today, for any directional cues.

Yield on the 10-year government bond opened at 5.930% as compared to Friday's close of 5.939%.

Bond market measures announced by the RBI may lead to long-end bonds rallying more than shorter ones, according to a note from Trust Capital.

Traders will also be watching out for macro cues in the form of CPI and IIP data which will be released later this evening.

The most subscribed PSU IPO listed at a premium of nearly 50% on its stock market debut after investors piled into the share sale of the builder of warships, submarines and commercial vessels.

Shares began trading at Rs 214.9, which is a 48% premium to its issue price of Rs 145 per share. The shares than rose to as high as Rs 216.95 in the early minutes of trade. The IPO of Mazagaon dock was subscribed 157 times on the final day of bidding.

On the other hand, UTI AMC, which saw a subdued response to its IPO, listed at a 11% discount to its issue price of Rs 554 per share.

Shares began trading at Rs 490.25, post the IPO which saw full subscription only on the final day of bidding. The overall issue was subscribed over 2 times.

The Mumbai-based manufacturer of ABS and SAN resins reported a 10% growth in its standalone revenue for the July-September period to Rs 307.8 crore.

Net profit for the quarter rose 75% to Rs 35.3 crore while operating profit or Ebitda more than doubled to Rs 46.3 crore.

Ebitda margins saw expansion to 15.1% from 7.1% during the same period last year and were at their highest level in 11 quarters.

Shares fell as much as 7.1% - the most in over seven months to Rs 90.55. Ahead of today's session, the stock had gained 36% in the last seven trading session.

The drugmaker informed the exchanges over the weekend that its formulations facility in Jadcherla, Telangana has received a warning letter from the U.S. FDA.

The company's formulations business comprised of 21% of the total revenue for FY20, JM Financial wrote in a note.

However, the company said that the warning letter will not have a significant impact on the operations or the revenues from the concerned site.

This is the second instance of a Pharma company getting a warning letter from the U.S. FDA after Panacea Biotech received one for its Baddi facility on September 30.

Shares fell as much as 12% to Rs 480, to its lowest level in three months, before a slight recovery. The stock currently trades 7% lower at Rs 508.7, down for the third straight day.

Indian equity markets opened higher for the eighth straight day, extending their winning streak to the most since April 2018.

The S&P BSE Sensex opened 0.5% higher at 40,716 while the NSE Nifty 50 index opened near the mark of 12,000 at 11,973 - up 0.5%. Both Sensex and Nifty had their best weekly performance in four months last week.

All sectoral indices opened with gains. The Nifty Metal index opened 0.8% higher while the Nifty I.T. index gained 0.7%. The FMCG, Realty and PSU Banking index opened with gains of 0.6% each.

Broader markets, which have been underperforming over the last few sessions have had a subdued start to the day. The Midcap index has opened 0.2% higher while the Smallcap index is up 0.5%.

1,050 stocks on the NSE have opened with gains while 375 are declining.

• Nifty: Sell 11,700 Put of the October 15 expiry in the range of Rs 33-35. Target of Rs 19-10 and a stop loss of Rs 49.
• Nifty Bank: Buy in the range of 23,950-24,000 for target of 24,200-24,500 and a stop loss of 23,800
• Buy L&T October futures for target of Rs 925.4 and Rs 949.9 with a stop loss of Rs 892.6
• Sell Britannia October futures for target of Rs 3,697 and Rs 3,629 for stop loss of Rs 3,787
• L&T and Britannia are intraday recommendations.

Source: ICICI Direct

• Vedanta: The company on Saturday said that the delisting offer is deemed to have failed as per terms of the delisting regulations. The post offer public announcement by the company said that 125.47 crore shares were validly tendered by public shareholders. For successful delisting of shares, 134.12 crore shares needed to have been validly tendered for promoter shareholding to cross 90%. Bids worth 12.31 crore were unconfirmed.
• Federal-Mogul Goetze (India): Promoter IEH FMGI Holdings to sell up to 1.21 crore shares or 21.83% stake through an Offer for Sale (OFS). The floor price of Rs 342 per share is a 21.1% discount to Friday's closing price. The promoter looks to raise Rs 415.4 crore through this OFS. The OFS for non-retail investors opens on October 12 while for retail investors, it opens on October 13.
• Indiabulls Housing Finance: Has sold further portion of its stake in OakNorth Holding - the wholly-owning parent company of OakNorth Bank to Riva Capital Partners for approximately Rs 441 crore. The company has now raised a total of Rs 2,273 crore as fresh equity in September and October through a QIP and stake sales. The sale proceeds will be accretive to the regulatory net worth and CRAR of the company.
• Dr Lal Pathlabs: The company has clarified that the data breach of patients was a result of misconfiguration in one of the company's minor web applications where temporary records were stored for operational purposes. It involved less than 0.5% of the records and the issue has been resolved since. A report on Saturday revealed that data of millions of patients, including Covid-19 test results was exposed. The company has said that the relevant authorities have been informed.
• Shilpa Medicare: Gets U.S. FDA warning letter for its formulations facility in Jadcherla, Telangana. The Company believes that the warning letter will have minimum impact of disruption of supplies and the existing revenues from operations of this facility.
• Non-Nifty Earnings Today: GNA Axles, Shalby.

To know about the key stocks in focus, brokerage updates and F&O cues, click here.

Good Morning!

Indian equity markets marked its best weekly performance in four months on Friday.

The S&P BSE Sensex and NSE Nifty 50 are witnessing their longest winning streak since November 2019. Gains in today's session mark eight straight days of ending higher. The last time the benchmark indices gained for eight days in a row was in April 2018.

Futures are indicating a positive start to the session's trade. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 12,010 as of 7:50 a.m. on Monday.

Asian markets have opened on a mixed note at the start of the new trading week. Markets in Japan declined, while those in Hong Kong and South Korea are little changed.

Futures on the Dow Jones have reversed losses, currently trading little changed. The index had ended 0.6% higher on Friday.

The offshore Yuan fell after Chinese policy makers acted to restrain its strength by making it easier to bet against.

West Texas Intermediate crude fell 1% to $40.2 per barrel, while gold was flat at $1,929.6/Oz.

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