Sensex, Nifty End Higher For Fifth Day; Stocks With Europe Exposure Rally On Brexit Deal

Indian equity indices extended gains for the fifth straight trading session to end near one-month high.

The S&P BSE Sensex rose 1.1 percent to close at 39,052 and the NSE Nifty 50 gained 1.07 percent to end at 11,586.35. both the benchmark indices ended at their highest levels since Sept. 24. The broader markets represented by the NSE Nifty 500 Index advanced 1.2 percent.

The equities with exposure to Europe witnessed a sudden spike in the last 30 minutes after the European Union and U.K. reached a historic Brexit deal, paving the way for Britain’s departure from the European Union.

“We’ve got a great new deal that takes back control — now Parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment,” U.K. Prime Minister Boris Johnson said in a tweet.

The market breadth was tilted in favour of buyers. About 1,122 stocks advanced and 653 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU Bank Index’s 3 percent rally. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.4 percent.

U.S. equity-index futures turned higher with European stocks on Thursday as a new Brexit deal was announced and investors digested a string of corporate results.

• Futures on the S&P 500 Index climbed 0.4 percent.
• The Stoxx Europe 600 Index rose 0.2 percent.
• The U.K.’s FTSE 100 Index gained 0.2 percent.
• The MSCI Asia Pacific Index increased 0.1 percent.
• The MSCI Emerging Market Index jumped 0.6 percent.
• The euro rose 0.5 percent to $1.1129.
• The British pound climbed 0.8 percent to $1.2934.

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Source: Bloomberg

Stocks with exposure to Europe surged after the European Union and U.K. reached a historic Brexit deal, paving the way for Britain’s departure from the European Union.

The U.K. Prime Minister Boris Johnson said in a tweet, “We’ve got a great new deal that takes back control — now Parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment.”

Shares of Tata Motors rose as much as 14.7 percent to Rs 144.35.

Besides, Shares of Motherson Sumi rose as much as 12.2 percent, to Rs 111.60. Also, shares of Bharat Forge, Mastek and Tata Elxsi jumped.

Source: Bloomberg

Shares of TVS Motor rose as much as 7.6 percent after announcing September quarter results.

Key Earnings Highlights (Q2, YoY)

• Revenue down 12.9 percent to Rs 4347.84 crore
• Net Profit up 21 percent to Rs 255.01 crore
• Ebitda down 11 percent to Rs 381.95 crore
• Margin at 8.8 percent versus 8.6 percent.

PNB Housing Finance

• Stock snapped seven-day losing streak and rose as much as 15 percent to Rs 437.
• Disbursements down 35 percent QoQ to Rs 4,970 crore
• GNPA stood at 0.84 percent versus 0.85 percent on QOQ
• AUM standing at Rs 89,741 crore and loan assets stood at Rs 74,353 crore.

Indiabulls Housing Finance

• Stock rose as much as 17.9 percent to Rs 204.
• Crisil Reaffirms long term-rating at AA+ and short-term rating at A1+.
• Company has aggregate liquidity of more than Rs 18,500 crore, which provides 100 percent cover for debt repayments till September 2020.
• Received sanctions to raise Rs 5,200 crore for via term loans.

Motherson Sumi Systems

• Stock rose as much as 4.2 percent to Rs 103.60.
• About 10 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Edelweiss Financial Services

• Stock rose as much as 5.3 percent to Rs 87.40
• CCI has approved Kora Master Fund LP’s investment if up to 10 percent stake in the company’s arm Edelweiss Securities for $75 million.

Manappuram Finance

• Stock rose as much as 5.8 percent to Rs 144.15.
• Fresh longs seen with high open interest of 20 percent.

Indian equity indices are set to extend gains for fifth straight trading session.

The S&P BSE Sensex rose 1 percent to 38,985 as of 2:55 p.m. and the NSE Nifty 50 rose 0.89 percent to 11,566. The broader markets represented by the NSE Nifty 500 Index advanced 0.92 percent.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 2.8 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.76 percent.

Amber Enterprises

• Stock rose as much as 4.5 percent to Rs 947.75.
• Trading volume was almost 13 times its 20-day average.

Kesoram Industries

• Stock rose as much as 14.6 percent to Rs 57.80.
• Trading volume was almost 20 times its 20-day average.

Indiabulls Integrated Services

• Stock rose as much as 4.9 percent to Rs 81.50.
• Trading volume was almost 10 times its 20-day average.

Bajaj Consumer Care

• Stock rose as much as 11 percent to Rs 271.20.
• Trading volume was almost 12 times its 20-day average.

Shares of Pennar Industries rose as much as 7.6 percent to Rs 27.

The company received a contract valued at Rs 304 crore, according to its stock exchange filing.

Of the shares traded, 62 percent were at the ask price and 32 percent were at the bid, according to Bloomberg data.

Shares of Mastek erased gains and fell as much as 6.6 percent to Rs 296.10 after the company announced its September quarter results.

Key Earnings Highlights (Q2, QoQ)

• Revenue down 1.6 percent to Rs 243.6 crore.
• EBIT down 15.1 percent to Rs 23 crore.
• EBIT Margin at 9.4 percent versus 10.9 percent.
• Net profit up 1.7 percent to Rs 24.6 crore.

Shares of TV18 Broadcast fell for the ninth consecutive trading session, their longest losing streak in nearly eight years.

The stock fell as much as 7 percent, the most since Sept. 25, to Rs 19.90.

Trading volume was 2.4 times its 30-day average, according to Bloomberg data. The stock declined 46.9 percent so far this year.

Shares of Adani Green Energy extended gains for the 10th consecutive trading session, their longest ever gaining streak.

The stock rose as 16 percent to hit an all-time high at Rs 92.40.

Trading volume was four times its 30-day average, Bloomberg data showed. The Relative Strength Index was at 88, indicating that the stock may be overbought.

Shares of Yes Bank extended gains for the fourth consecutive trading session.

The stock rose as much as 15.9 percent, the most in two week, to Rs 47.60.

The analysts consensus 12-month price target tracked by Bloomberg stands at Rs 78.21, implying a potential return of 68 percent from the current market price. The stock declined 74.2 percent so far this year and slumped 79.8 percent in the past 12 months.

Indian equity indices extended gains to trade at day’s high.

The S&P BSE Sensex rose 0.8 percent to 38,902 as of 1:40 p.m. and the NSE Nifty 50 rose 0.62 percent to 11,534.50. The broader markets represented by the NSE Nifty 500 Index rose 0.68 percent.

The market breadth was tilted in favour of buyers. About 965 stocks advanced and 750 shares declined on National Stock Exchange.

Shares of PVR rose as much as 1.9 percent to Rs 1,856.95 after announcing September quarter results.

Key Earnings Highlights (Q2, YoY)

• Revenue up 37 percent to Rs 979.4 crore.
• Net profit up 34.6 percent to Rs 47.67 crore.
• Ebitda up 149 percent to Rs 324.3 crore.
• Margin at 33 percent versus 18 percent
• Deferred tax gain of 11 crore.

Shares of the Goa-based company fell 4.9 percent intraday, the most in two weeks, to Rs 86 each.

One of Zuari’s fertiliser plants has been shut down due to non-availability of raw material, according to an exchange filing. The company will notify the exchanges once the plant operations resume, the filing said.

The stock declined 64 percent in the past 12 months compared with 11 percent gain in the Sensex.

Shares of Jain Irrigation Systems extended declines for the second consecutive trading session.

The stock fell as much as 8.9 percent to Rs 11.65 and dropped 15 percent in two days. The scrip declined for third day in four.

The Relative Strength Index was below 30, indicating that the stock may be oversold, according to Bloomberg data. The stock has declined 16 percent in the past five days and dropped 47 percent in the past 30 days.

Indian equity indices struggled to hold on to gains and continued to witness a topsy-turvy trade.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,620 and 11,455.90 as of 11:15 a.m. The broader markets represented by the NSE Nifty 500 Index rose 0.04 percent.

Shares of PNB Housing Finance rose as much as 15 percent, the most in over a year, to Rs 437.

The company’s disbursements fell 35 percent on a sequential basis to Rs 4,970 crore in September quarter. The company also securitised loans amounting to Rs 3,580 crore through direct assignment. AUM was at Rs 89,471 crore and Loan Assets at Rs 74,353 crore. Gross non-performing asset were at 0.84 percent versus 0.85 percent quarter-on-quarter.

Trading volume was almost 30 times its 30-day average, Bloomberg data showed. Of the shares traded, 38 percent were at the ask price and 38 percent were at the bid.

Shares of Emami extended gains for the second consecutive trading session

The stock rose as much as 10.5 percent, the most in nearly four months, to Rs 351.90. The scrip gained 16.4 percent in two days.

Blackstone Group Inc. and a rival consortium led by KKR & Co. are considering bids for the cement unit of Indian cosmetics to paper conglomerate Emami Group, Bloomberg reported quoting people familiar with the matter.

Trading volume was more than 14 times its 20-day average, Bloomberg data showed. The Relative Strength Index was at 71, indicating that the stock may be overbought.

Nifty’s 11,500 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire today, fell 34.4 percent to Rs 14.50. Over 11 lakh shares were added to the open interest which stood at over 32.13 lakh shares.

Mindtree (Q2, QoQ)

• Stock fell as much as 3.4 percent to Rs 718.35.
• Revenue rose 2.7 percent to $271 million.
• Revenue rose 4.4 percent to Rs 1,914 crore.
• Net profit rose 45.6 percent to Rs 135 crore.
• EBIT rose 34.8 percent to Rs 248 crore.
• Margin stood at 13 percent versus 10 percent.
• Operating margins higher owing to low base.

Hathway Cable & Datacom (Q2, YoY)

• Stock rose as much as 4.9 percent to Rs 23.70.
• Revenue rose 13 percent to Rs 442.1 crore.
• Net loss stood at Rs 2.6 crore versus Net loss of Rs 84.7 crore.
• Ebitda rose 2 times at Rs 102.5 crore.
• Margin stood at 23.2 percent versus 13.2 percent.
• Other Income rose 12.2 times to Rs 68.7 crore.
• Broadband Business Revenue rose 7 percent to Rs 139.4 crore.
• Cable TV revenue rose 16 percent to Rs 302.8 crore.

Shares of Motherson Sumi Systems rose as much as 1.8 percent to Rs 101.20.

About 10 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Corrects earlier version that stated block deal in place of large trade.

Shares of Tata Power fluctuated between gains and losses to trade 0.26 percent lower at Rs 57.95.

About 30 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

The stock traded at 11 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Bajaj Consumer Care extended gains for the second consecutive trading session and rose as much as 11 percent to Rs 271.20.

HDFC MF increased its stake to 6.48 percent from 1.23 percent on Oct. 15. Besides, the company’s promoters sold 3.24 crore shares on Oct. 15.

Of the shares traded, 45 percent were at the ask price and 32 percent were at the bid, according to Bloomberg data.

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

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,594 and 11,453 respectively. The broader markets represented by the NSE Nifty 500 Index fell 0.13 percent.

The market breadth was tilted in favour of buyers. About 771 stocks advanced and 671 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 1.16 percent fall. On the flipside, the NSE Nifty Medial Index was the top sectoral gainer, up 1.05 percent.

Indian equity indices are expected to remain volatile today, according to homegrown brokering company Karvy Stock Broking.

“The benchmark Index—NSE Nifty 50 continued its winning streak and is likely to surge much higher on breach of 11,500-11,530 zone,” the research firm said in a note today.

Futures

• Nifty October futures closed at 11475.5, premium unchanged at 11 points.
• Nifty October futures down 3 percent, sheds 4.5 lakh shares in open interest.
• Nifty Bank futures closed at 28,604, premium 65.9 points versus 63.6 points.
• Nifty Bank October futures open interest down 5 percent, sheds 70,000 shares in open interest.

Options

• Nifty PCR at 1.31 (across all series).

Nifty Weekly Expiry: Oct. 17

• Max open interest on call side at 11,500 (21.1 lakh shares).
• Max open interest on put side at 11,400 (25.2 lakh shares).
• open interest addition seen at 11400P (+8 lakh shares), 11,450P (7.6 lakh shares), 11,500C (+4.9 lakh shares).

Nifty Monthly Expiry: Oct. 31

• Max open interest on call side at 12,000 (23.8 lakh shares).
• Max open interest on put side at 11,000 (29.5 lakh shares).

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.1 percent to 71.37 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.36 percent to 38,756 during the pre-market and the NSE Nifty 50 rose 0.2 percent to 11,485.75.

• Bajaj Consumer Care promoters sold 3.24 crore shares on Oct. 15.

• NIIT ex-date for share buyback.
• Gruh Finance record date for amalgamation.
• Bandhan Bank, California Software , Aurionpro Solutions to move into short term ASM Framework.
• Genus Paper & Boards, Pudumjee Paper Products to move out of short term ASM Framework.
• Coastal Corporation, Autoline Industries, GVK Power & Infrastructure price band revised to 10 percent.
• Zee Media Corporation, Indiabulls Ventures, SMS Lifesciences, Reliance Capital, Mirc Electronics, Chromatic price band revised to 5 percent.

• PNB Housing Finance Q2 Update: Disbursements fell 35 percent on a sequential basis to Rs 4,970 crore. The company also securitised loans amounting to Rs 3,580 crore through direct assignment. AUM was at Rs 89,471 crore and Loan Assets at Rs 74,353 crore. Gross non-performing asset were at 0.84 percent versus 0.85 percent quarter-on-quarter.
• NALCO said coal shortages have severely impacted its aluminium production. “Short supply of coal has severely impacted Aluminium production of NALCO and also the cost of power, as the power purchased from the grid is costly as compared to the power produced by NALCO at its CPP,” the state-run unit said in a statement. Presently, three units of Nalco’s Captive Power Plant, each of 120 megawatt capacity, are under shutdown and further one more unit will be shut due to coal shortage, it said.
• Edelweiss Financial Services: The Competition Commission of India has approved Kora Master Fund LP’s investment if up to 10 percent stake in the company’s arm Edelweiss Securities for $75 million, according to its media stateent.
• HDFC to issue debentures worth Rs 500 crore, with an oversubscription option of Rs 5,500 crore.
• KNR Constructions: The National Highways Authority of India Has terminated the agreement for the company’s arm KNR Chidambaram Infra. The agreement is deemed terminated with effect from April 11, 2019.
• Bajaj Consumer Care: HDFC MF increased its stake to 6.48 percent from 1.23 percent on Oct. 15.
• Future Consumer Care promoters have a stake of 46.29 percent in the company, out of which 81.26 percent of promoter shareholding is encumbered shares.
• Suven Life Sciences: Crisil has revoked the suspension of the long-term and short-term banking facilities and placed both the facilities on ratings watch with positive implication. Long-term banking facilities assigned as Crisil A and short-term banking facilities at Crisil A1.
• Muthoot Finance: Board meeting may be held on after Oct. 21 to consider and approve the pricing, terms and conditions, issuance and allotment of Notes proposed to be issued under the GMTN Program for $2 billion.
• CG Power & Industrial Solutions said that its forensic audit has commenced from Oct. 15. BSE had appointed MSA Probe Consulting for conduct of forensic audit from fiscal year 2016 onwards on Sept. 18.
• Deepak Fertilizers & Chemicals to consider allotment of FCCB’s aggregating to $15 million to IFC on Oct. 19.
• Shoppers Stop opened a new store in Gurugram, taking the total to 85 stores under its operations.
• Zuari Agro Chemicals has shut down its NPK plant due to non-availability of raw materials.
• Cox & Kings defaulted on payment of non-convertible debenture’s interest worth Rs 41.1 lakh which was due on Oct. 15.
• Rane (Madras) to consider fund raising on Oct. 21.
• Shree Cement to consider fund raising via shares on Oct. 18.
• Indiabulls Housing: CRISIL has reaffirmed the long-term rating of the company at “CRISIL AA+”. Short-term rating has been reaffirmed at “CRISIL A1+”

Nifty Earnings To Watch

• Zee Entertainment Enterprises

Other Earnings To Watch

• TVS Motor
• Larsen & Toubro Infotech
• Dewan Housing Finance Corporation
• Jay Bharat Maruti
• South Indian Bank
• PVR
• Shemaroo Entertainment
• Mastek
• Cyient
• Chennai Petroleum Corporation
•   Automotive Stampings and Assemblies
• 3i Infotech

Earnings Reaction To Watch

Mindtree (Q2, QoQ)

• Revenue rose 2.7 percent to $271 million.
• Revenue rose 4.4 percent to Rs 1,914 crore.
• Net profit rose 45.6 percent to Rs 135 crore.
• EBIT rose 34.8 percent to Rs 248 crore.
• Margin stood at 13 percent versus 10 percent.
• Operating margins higher owing to low base.

Hathway Cable & Datacom (Q2, YoY)

• Revenue rose 13 percent to Rs 442.1 crore.
• Net loss stood at Rs 2.6 crore versus Net loss of Rs 84.7 crore.
• Ebitda rose 2 times at Rs 102.5 crore.
• Margin stood at 23.2 percent versus 13.2 percent.
• Other Income rose 12.2 times to Rs 68.7 crore.
• Broadband Business Revenue rose 7 percent to Rs 139.4 crore.
• Cable TV revenue rose 16 percent to Rs 302.8 crore.

• Crude oil gave back some of its gains after a report showed inventories rising more than 10 million barrels, dimming the market’s optimism after signs that the trade war between the U.S. and China may be nearing an end.
• The pound fell from a five-month high as European Union and U.K. officials downplayed the prospects of a deal Wednesday night out of last-ditch Brexit negotiations.
• U.S. stocks fell, led by energy and technology shares, as investors mulled earnings reports and the prospects of trade negotiations.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.05 percent to 11,492 as of 8:30 a.m.

Asian stocks drifted on Thursday after a modest dip in the U.S. equities as investors mulled a weak U.S. consumer report.

Shares in Tokyo and Sydney edged lower, and were little changed in Seoul. The S&P 500 Index dipped on Wednesday as energy and technology shares retreated.

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