Sensex Closes Off Record High As HDFC Bank, RIL Weigh; Nifty Ends Below 11,900
The Bombay Stock Exchange (BSE), right, stands on Dalal Street in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)

Sensex Closes Off Record High As HDFC Bank, RIL Weigh; Nifty Ends Below 11,900

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Sensex Closes Off Record High As HDFC Bank, RIL Weigh; Nifty Ends Below 11,900

Indian equity benchmarks extended gains for the fifth consecutive trading session, but clocks second-least gains during the period on F&O expiry day.

The S&P BSE Sensex rose 0.19 percent to close at 40,129.05 after hitting an all-time high at 40,392.22 intraday. The NSE Nifty 50 rose 0.28 percent to end at 11,877. The broader markets represented by the NSE Nifty 500 Index rose 0.44 percent. In October series, the Nifty gained 2.65 percent and Nifty Bank rose 0.21 percent.

The markets going to witness a lot of panic buying from the foreign institutional investors, Basant Maheshwari said as the 31-share index hit an all-time high.

"The bottomline is the move looks like a broad-based one. There is going to be a lot of panic buying from FIIs who are net short," the co-founder told BloombergQuint in an interaction.

Besides, the government policies have become more favourable to the stock markets, Maheshwari said.

The government’s mood has changed. From last year’s LTCG tax, suddenly the government looks like picking the stock market up because it wants to sell its family silver. And, why should it be sold at the price of bronze instead at a price of gold? And, what is the better way to do it than rallying Nifty up to 12,500 or 13,000?

The market veteran, however, cautioned that one can’t expect 5,000 companies to be doing well in a 5 percent-GDP growth situation.

5 percent GDP growth is like small children competing with a big bully and saying I need my share of pizza. The big bully (large caps) is going to keep everything for himself and the small children won’t get anything.
Basant Maheshwari, Co-Founder At Basant Maheshwari Wealth Advisers

The market breadth was tilted in favour of buyers. About 1,119 stocks advanced and 669 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 3.79 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.52 percent.

Indian Oil Swings After Q2 Results

Shares of Indian Oil Corporation fluctuated between gains and losses to trade little changed at Rs 147.05.

Key Earnings Highlights (Q2, QoQ)

  • Net profit down 84.3 percent to Rs 563 crore.
  • Revenue down 15.07 percent to Rs 1,11,690 crore.
  • Ebitda down 57 percent to Rs 3,572.
  • Margin at 3.2 percent versus 6.35 percent.

Fab Four Stocks Of The Day

Quess Corp

  • Stock rose as much as 16.9 percent to Rs 554.
  • Stock rose as much as 9.5 percent to Rs 519.
  • Revenue rose 26.7 percent to Rs 2,650.3 crore.
  • Net profit fell 2 percent to Rs 60.6 crore.
  • Ebitda rose 44.1 percent to Rs 161.4 crore.
  • High finance and depreciation costs impacted profits.

Tata Global Beverages

  • Stock rose as much as 5.1 percent to Rs 306.50.
  • Revenue rose 4.2 percent to Rs 1834.1 crore.
  • Net profit fell 18.9 percent to Rs 137.7 crore.
  • Ebitda rose 41 percent to Rs 234.7 crore.
  • Margin stood at 12.8 percent versus 9.5 percent.
  • Merger of consumer products business of Tata Chemicals with self on schedule and expected to achieve full closure by end of 2019-20.

Gujarat Pipavav Port

  • Stock rose as much as 7.1 percent to Rs 87.80.
  • About 10.5 lakh shares of Gujarat Pipavav changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

HCC

  • Stock rose as much as 19.6 percent to Rs 10.05.
  • “The lenders to Lavasa Corp. will consider three offers made for the real estate company today,” Business Standard reported quoting a bank official it didn’t identify. “A group led by Haldiram snacks has offered to take over Lavasa for Rs 2,046 crore,” the report added.

Market Check: Sensex Set Close Off Record Highs

Indian equity benchmarks traded off day’s high.

The S&P BSE Sensex rose 0.18 percent to 40,125 and the NSE Nifty 50 rose 0.23 percent to 11,871. The broader markets represented by the NSE Nifty 500 Index rose 0.28 percent.

Dhanlaxmi Bank MD, CEO T Latha Resigns

Dhanlaxmi Bank Ltd. Managing Director and CEO T Latha resigned due to due to personal reasons, according to the lender’s stock exchange filing.

Besides, BloombergQuint spoke to Latha earlier. Here are the key highlights from the conversation:

  • Loan growth driven by gold loans, MFI loans.
  • Have increased the PCR to 90 percent.
  • Gross NPAs should come down to less than 6.5 percent.

Large Trade Alert: Tata Motors

About 12.5 lakh shares of Tata Motors changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

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