Sensex, Nifty Clock Longest Weekly Rally In Over Two Months

Indian equity benchmarks rose for second day in a row paced by gains in Bharti Airtel, Reliance Industries, HDFC and State Bank of India.

The S&P BSE Sensex rose 0.6 percent or 197 points to 35,457 and the NSE Nifty 50 Index climbed 0.6 percent or 65 points to 10,682.

The benchmarks rose for third week in a row clocking their longest rally in over two months. For the week, Senex rose 0.85 percent and Nifty climbed 0.9 percent.

In today's trade, eleven of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Telecom Index's 6.3 percent surge. On the other hand, the S&P Metal Index was top loser, 1.6 percent.

Shares of the state-run miner fell as much as 7.7 percent to Rs 99 after a media report suggested that Karnataka may withdraw Donimalai iron ore mine operated by the company.

Meanwhile, speaking to BloombergQuint, N Baijendra Kumar, managing director of NMDC said that they have not received any formal communication from Karnataka government over Donimalai issue.

N Baijendra Kumar said:

• Reports on Donimalai issue is purely speculative in nature
• Karnataka government issued certain extension with condition over mining lease

Shares of the Kolkata-based non-banking finance company pared gains and was up 2 percent at Rs 35.45 after it reported September quarter earnings.

Key earnings highlights:

• Revenue up 26 percent at Rs 1,668 crore versus Rs 1,320 crore (YoY)
• Net profit up 29 percent at Rs 111 crore versus Rs 86 crore (YoY)

Shares of the Chennai-based healthcare services provider fell as much as 15 percent, the most in nearly four months, to Rs 132.05 after CARE Ratings withdrew ratings assigned to its commercial paper.

• The company has not used the rating for mobilising funds
• No amount outstanding under proposed issue as on date

Stocks in Europe gained following a mixed session in Asia as investors gauged whether China and the U.S. can de-escalate their trade dispute before the G-20 summit later this month. The dollar retreated and Treasuries were steady.

The Stoxx Europe 600 Index advanced, led by miners and energy companies. Shares slipped in Japan, but climbed in most other markets, notably China and Hong Kong. U.S. futures fell after Nvidia Corp. gave a disappointing sales forecast and Commerce Secretary Wilbur Ross damped hopes of any imminent trade deal with China. The pound steadied after Thursday’s plunge as Brexit again threw the U.K. government into turmoil.

Shares of the country's second largest wireless telecom operator rose as much as 8 percent, the most in over three weeks, to Rs 329 on the back of heavy volume.

Trading volume was more than triple its 20-day average, data compiled by Bloomberg showed.

Over 1.35 crore shares changed hands on the National Stock Exchange as per the information on exchange's website.

India’s biggest gas utility is considering acquiring all the wind energy assets held by a subsidiary of a troubled shadow bank, people familiar with the matter told Bloomberg.

GAIL India Ltd. is looking to buy 775 megawatts of wind energy assets from IL&FS Energy Development Co., a unit of Infrastructure Leasing & Financial Services Ltd., and has approached investment bankers to advise on a possible deal, the people said, asking not to be named as the talks are private.

Shares of the Pune-based fertiliser manufacturer extended decline and fell as much as 3.62 percent to Rs 175.50.

Deepak Fertilisers informed exchanges that the Income Tax department has been conducting searches at its office since yesterday.

The state-run bank doesn’t need any capital from government, Rajnish Kumar, chairman of the lender, told reporters in New Delhi today.

Source: Bloomberg

Indian equity benchmarks held on to gains led by Reliance Industries, HDFC twins, Bharti Airtel and ITC.

The Sensex rose 0.6 percent or 220 points to 35,480 and the Nifty 50 Index advanced 0.65 percent or 69 points to 10,685.

Twelve of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Telecom Index's 3.3 percent surge. On the other hand, S&P BSE Metal Index was the top loser, down 1 percent.

Top Nifty gainers

• Bharti Airtel up 5.4 percent
• HCL Tech up 4.5 percent
• Eicher Motors up 2.8 percent
• Reliance Industries up 2.7 percent
• Cipla up 2.7 percent

Top Nifty losers

• Yes Bank down 7.3 percent
• Indiabulls Housing Finance down 5.5 percent
• JSW Steel down 2.7 percent
• Tata Steel down 2.5 percent
• ONGC down 2.1 percent

• Future Lifestyle: The Mumbai-based apparel retailer fell 4 percent to Rs 370.55. Trading volume was 15 times its 20-day average.
• Rajesh Exports: The Bengaluru-based gold jewellery maker and exporter rose as much as 3.4 percent to Rs 579. Trading volume was eight times its 20-day average.
• Greaves Cotton: The Mumbai-based internal combustion engine maker rose as much as 3.72 percent to Rs 134. Trading volume was 11 times its 20-day average.
• Oracle Financial Services Software: The Mumbai-based software developer rose as much as 4.37 percent to Rs 3,633. Trading volume was more than seven times its 20-day average.

Nifty's 10,700 call option contract was among the most active option contracts on the National Stock Exchange.

Premium on the contract rose 10 percent to Rs 96.10. As many as 5.90 lakh shares were added to the open interest which stood at over 34.62 lakh shares.

The Reserve Bank of India board will review rules governing the use of its reserves and transfer the surplus to the federal government, people with knowledge of the matter told Bloomberg.

• Board to consider easing norms governing weak state-run banks sanctioned by the regulator, the people said, asking not to be identified as the discussions were private.
• Examine capital and risk weight norms that are more stringent than the Basel guidelines.
• To review restructuring of loans upto Rs 25 crore availed by micro, small and medium enterprises.
• The board meets on Monday to consider the proposals.

Source: Bloomberg

Reliance Industries market capitalisation rose by Rs 16,976 crore to Rs 7.12 lakh crore, overtaking TCS' market cap of Rs 7.05 lakh crore, to become India's most valuable company.

Another 5-7 percent correction or more will make valuations attractive, Mahesh Nandurkar, India strategist at CLSA told BloombergQuint in an interview.

Key earnings highlights:

• We have been cautious on the markets for some time
• Headwinds like rising interest rates, high oil prices have played out
• Need to see more correction in terms of market valuations
• Corporate balance sheets still not reflective of high interest rates
• Several long-term building blocks are now in place
• Most emerging markets are now trading below their historical averages
• India will command a premium till retail flows remain robust
• Robust domestic flows work in favour of the markets
• Domestic investments critical for markets to perform
• Don't see FII money returning to India anytime soon
• Another 5-7 percent correction or more will make valuations attractive
• Asset quality trends have improved over the last two quarters
• Earnings on the staples front met our expectations
• Hiring in the I.T. sector is the highest in two years
• Have seen some weakness on the demand side
• Sectors like cement will continue to see more downgrades
• Farm income not rising as fast as it should
• Question is whether government needs to take more fiscal spending to revive agri income
• Mass two-wheeler market does not provide long-term value
• Like the premium two-wheeler space
• Liquidity crunch will only accelerate the pain for NBFCs
• Banks at an advantage to gain market share from NBFCs
• Like only quality NBFCs that can raise funds irrespective of market conditions
• Rupee depreciation will be a tailwind for pharma space

• Bharti Airtel has 12 lakh shares change hands in a block. Stock up 6.7 percent at Rs 329.
• Power Finance has 50 lakh shares change hands in a block. Stock down 1 percent at Rs 107.
• Mindtree has 17 lakh shares change hands in a block. Stock up 1 percent at Rs 849.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Raichur-based drugmaker rose as much as 6.91 percent, the most in nearly three months, to Rs 399.75 per share after it received FDA’s tentative approval for a multiple sclerosis drug.

The company has received tentative ANDA approval for Dimethyl Fumarate Delayed Release capsules in strengths of 120 and 240 milligram which is used in the treatment of relapsing forms of multiple sclerosis, Shilpa Medicare said in a press release.

According to IQVIA MAT Q2 2018 data, the U.S. market for Dimethyl Fumarate DR Capsules is approximately $3.46 billion, the release added.

Shares of ONGC, Indian Oil and Oil India declined as government is planning to sell its shares worth $2 billion in these companies to meet divestment target, The Economic Times reported citing unknown people familiar with the matter.

• ONGC declined as much as 3.8 percent to Rs 152.80
• Indian Oil fell as much as 3.68 percent to Rs 141.25
• Oil India tumbled as much as 4.6 percent to Rs 194

Shares of the Mumbai-based private sector lender declined for third day in a row after former State Bank of India Chairman Om Prakash Bhatt stepped down from the panel set up to search for a new chief executive officer for Yes Bank Ltd.

The stock declined as much as 4.88 percent to Rs 195.80 and in the last three trading sessions it has corrected 13 percent.

Indian equity benchmarks nudged higher led by TCS, HDFC twins and ITC.

The S&P BSE Sensex rose 0.28 percent or 106 points to 35,374 and the NSE Nifty 50 Index advanced 0.28 percent or 30 points to 10,646.

Sixteen of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Information Technology Index's 0.9 percent gain. On the flipside, S&P BSE Oil & Gas Index was the top loser, down 1.15 percent.

Mid- and small-cap shares were flat as the S&P BSE MidCap and S&P BSE SmallCap Indices rose a little over one percent.

Rupee rose as much as 0.11 percent or 8 paise to 71.90 per dollar against yesterday's close of 71.98.

The rupee is headed for a second week of gains in three on renewed inflows into the nation's stocks and bonds.

The rupee rose 0.5 percent to end at 71.98 per dollar on Thursday, with implied opening from the forwards suggesting the spot may start trading around 71.90. Although, data late on Thursday showed India's trade deficit widening on higher oil imports, a recent slide in crude, the country's biggest import item, is likely to have a positive impact on sentiment.

Most economists expect the deficit to narrow in coming months as the impact of falling oil prices play out.

In the bond market, the RBI will conduct Rs 30,000 crore of three-day variable rate reverse repo auction and Rs 23,500 crore of 14-day term repo auctions. The benchmark 10-year bond yield rose 2 bps to 7.76 percent on Thursday, although for the week, yields are still lower, helped by a subdued inflationary outlook.

On Thermax

Macquarie

• Maintain Underperform; cut price target to Rs 846 from Rs 866.
• Margins continue to elude leading to disappointment in earnings.
• Thermax lacks pricing power as it is not the market leader.
• switch to Cummins India which is trading at discount.

Jefferies

• Maintain Underperform; cut price target to Rs 875 from Rs 950.
• Revenue growth comes at the cost of margins.
• Concerned on capital allocation and potential margin downside.
• Believe subdued RoEs during FY18-21 will continue to be an overhang.

More Calls

HSBC on Zee Entertainment

• Upgraded to ‘Hold’ from ‘Reduce’; maintained price target at Rs 460
• Announcement reflects the acceptance of changing industry dynamics
• Move removes our concerns over Zee’s tech capabilities
• Upgrade due to recent stock correction.

Jefferies on GAIL

• Maintained ‘Buy’ with a price target of Rs 450.
• Near term business conditions have turned unfavourable.
• Trading margins may sharply from the September quarter highs.
• This may all reverse with OPEC cut, rise in petchem and transmission margins.

• Nifty November futures closed trading at 10,630, premium of 14 points.
• Nifty November open interest down 0.3 percent; Nifty Bank November open interest up 11 percent
• Max open interest for November series at 11,000 Call, open interest at 34.1 lakh shares.
• Max open interest for November series at 10,200 Put, open interest at 33.6 lakh shares.

Insider Trading

• Greaves Cotton promoter Karun Carpets acquired 1.3 lakh shares from Nov. 13-14.
• Aarti Industries promoter sold 1.3 lakh shares from Nov. 13-14.

Trading Tweaks

• KG Denim price band revised to 10 percent.
• Veto Switchgears and Cables price band revised to 5 percent.
• Innovative Ideals and Services price band revised to 2 percent.
• Promact Impex, Castex Technologies, Electrosteel Steels to move into ASM Framework.

Who’s Meeting Whom

• Heidelberg Cement to meet Alquity Investments on Nov. 16.
• Narayana Hrudalaya to meet Tata MF, Motilal Oswal PMS and other investors on Nov. 16.

Bulk Deals

Kotak Mahindra Bank

• Government of Singapore acquires 95.6 lakh shares or 0.50 percent equity at Rs 1130 per share.
• Aberdeen PLC acquired 25.6 lakh shares or 0.13 percent equity at Rs 1,130 per share.
• Nomura Pension Fund acquired 6.3 lakh shares or 0.03 percent equity at Rs 1,130 per share.
• ING Mauritius Investments sold 1.3 crore shares or 0.67 percent equity at Rs 1,130 per share.

NRB Bearing

• HDFC MF acquired 14.4 lakh shares or 1.48 percent equity at Rs 184.96 each.

Bharat Financial Inclusion

• Smallcap World Fund INC acquired 7.4 lakh shares or 0.53 percent equity at Rs 936.45 each.
• William Blair And Company LLC sold 8.8 lakh shares or 0.63 percent equity at Rs 936.73 each.

• Tourism Finance Corporation of India
• Srei Infrastructure

• Jet Airways: Government is said to ask Tata Group to rescue Jet Airways. Both Tata Group and government said in talks with banks to take haircut in the deal. (Bloomberg News)
• Yes Bank: OP Bhatt resigns from his duty as an external expert from the search committee (which was finding the next successor to CMD Rana Kapoor) citing conflict of interest. The nominations and remuneration committee has decided to continue with the existing members of the search committee to complete the process as per timeline communicated by RBI.
• Tata Sponge board approved issuance of preference shares worth Rs 1,000 crore to promoter -Tata Steel on a private placement basis.
• SRF Industries extended capex estimates from Rs 180 crore to Rs 257 crore for enhancement and integration of agrochemical plant in Gujarat.
• Lemon Tree signs license agreement for a 76-room property in Odisha. The hotel will be operational by March 2020.
• Punjab and Sind Bank revises MCLR across various tenors with effect from November 16. Overnight MCLR at 8 percent and one-year MCLR at 8.8 percent.

• Fitch’s India rating unchanged for 12th year in a row
• India’s trade deficit widens even as exports bounce back
• Former IndiGo president Aditya Ghosh roped in as CEO of Oyo Hotels
• May vows to carry on as Brexit’s hardliners try to topple her
• Foreign investors cut holding in 123 Indian stocks in second quarter
• India can’t keep dodging trade deals
• Gurumurthy backs government in seeking easier banking rules
• How Walmart decided to oust an icon of India’s tech industry
• Infosys names Sanghrajka as interim CFO
• CLSA’s Chris Wood too thinks RBI may be overcapitalised
• YouTube king PewDiePie surrenders crown to Indian record label

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.35 percent or 37 points to 10,659 as of 7:10 a.m.

Asian equities rounded out the week with muted gains following a rally in U.S. stocks as investors gauge whether China and the U.S. can de-escalate their trade spat before the G-20 summit later this month.

Stocks in Japan ticked higher, Australian shares climbed, and futures pointed to modest gains for equities in China and Hong Kong.

The pound held on to its plunge as Brexit again threw the U.K. government into turmoil. The dollar was little changed and Treasuries were steady. Oil held at about $57 a barrel in New York.

Sterling tumbled as several ministers resigned and questions of a leadership challenge arose. The events throw into doubt Prime Minster Theresa May’s ability to secure Parliament’s support for the exit plan -- and even to survive as leader. As the Westminster resignations rolled in, gilts surged, but at a press conference late Thursday, the premier reiterated her commitment to the exit deal.

Currencies

• The yen rose 0.1 percent to 113.52 per dollar.
• The offshore yuan held at 6.9280 per dollar.
• The Bloomberg Dollar Spot Index fell less than 0.1 percent Thursday.
• The euro bought $1.1329.
• The British pound was at $1.2770 after sliding 1.7 percent.

Commodities

• West Texas Intermediate crude was flat at $56.44 a barrel.
• Gold rose 0.1 percent to $1,213.94 an ounce.
• LME copper gained 1.5 percent to $6,184 a metric ton Thursday.