Sensex, Nifty Clock Two-Week Low Ahead Of Earnings Season

Indian equity indices ended lower for the sixth-straight day dragged down by losses in Bharat Petroleum and metal stocks.

The S&P BSE Sensex fell 0.38 percent to 37,531.98 and the NSE Nifty 50 declined 0.43 percent to 11,126.40. The broader markets represented by the NSE Nifty 500 Index fell 0.56 percent. The September quarter earnings season of Nifty firms kicks off on Thursday with IndusInd Bank Ltd. and Tata Consultancy Services Ltd. Infosys Ltd. will announce results on Friday.

An investor must turn sector-specific in order to tackle the second-quarter earnings. That’s according to Gaurang Shah, head investment strategist, Geojit Financial Services.

"An investor should channelise all his investments towards long-term view at the fallback of earnings," said Shah in an interview to BloombergQuint. "Stick to quality and buy quality," he said.

The market breadth was tilted in favour of sellers. About 1,179 stocks declined and 608 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Pharma Index’s 3.35 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 1.37 percent.

The top five gainers on Sensex were all private banks.The rally was led by 11 percent gain in Yes Bank.

Yes Bank is in talks with three top technology companies, including Microsoft Corp. to bring one of them on board as a strategic investor, according to a Livemint article.

However, the bank said it was not aware of the source which resulted in the abovementioned news item, in an exchange filing. The Bank would not like to comment on such news, it added.

Shares of the media conglomerate recover nearly 20 percent from day’s low to trade at Rs 248.90 each.

Earlier, the stock fell over 14 percent intraday as promoter Essel Media created encumbrance of 10.71 percent stake or 10.29 crrore shares with VTB Bank, according to an exchange filing. Also, over 90 percent of promoter stake in Zee Entertainment Enterprises has been pledged to raise debt, the company revealed in an analyst call on Saturday.

The company intends to repay the debt in the next three months, said its Managing Director Punit Goenka in an interview to Economic Times . The stock traded 11 times its estimated earnings per share for the coming year, Bloomberg data showed.

An investor must turn sector-specific as September quarter earnings season kicks off on Wednesday. That’s according to Gaurang Shah, head investment strategist, Geojit Financial Services

"An investor should channelise all his investments towards long-term view at the fallback of earnings," said Shah in an interview to BloombergQuint. "Stick to quality and buy quality," he said.

Shares of the consumer appliances maker rose 5.2 percent intraday to a record high of Rs 2,028.50 apiece.

Whirlpool of India Ltd. was the only stock on NSE Nifty 500 index trading at a lifetime high. The stock advanced 50 percent in the last 12 months compared to a 10 percent gain in the Sensex.

Shares of the private lender jumped 9 percent intraday to Rs 45.95 apiece.

Yes Bank is in talks with three top technology companies, including Microsoft Corp. to bring one of them on board as a strategic investor, according to a Livemint article. The new investor may bring in fresh capital infusion and augment the bank’s digital ambitions, the report added,

However, the bank said it was not aware of the source which resulted in the abovementioned news item, in an exchange filing. The bank would not like to comment on such news, it added.

The stock traded 85 percent below the Bloomberg one-year consensus target price.

Indian equity indices traded higher led by a rally in private banks and Britannia Industries.

The S&P BSE Sensex rose 0.28 percent to 37,779.79 and the NSE Nifty 50 declined 0.10 percent to 11184.75. The broader markets represented by the NSE Nifty 500 Index fell 0.48 percent.

Though benchmark index is trading at strong support zone of 11,150 levels, buying can be placed around the five-day moving average of 11,320 levels, said brokerage firm Narnolia in a research report. Till then one can use sell on rise strategy, the report added.

The market breadth was tilted in favour of sellers. About 920 stocks declined and 746 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Pharma Index’s 2.10 percent fall. On the flipside, the NSE Nifty Bank Index was the top sectoral gainer, up 1.03 percent.

Shares of the Hyderabad-based company declined 14.8 percent to Rs 483.45 apiece—its lowest level since Feb. 2015.

The contents of the Form 483 issued to the company's unit 7 in Telangana became public. The U.S.FDA issued a Form 483 with 7 observations to the company citing lack of good manufacturing practices. BloombergQuint reviewed the Form 483 and noted that the observations related to control procedures, documentation, equipment cleanliness and quality control.

The relative strength index on the stock was below 30, indicating the stock may be oversold.

Shares of the Mumbai-based drugmaker fell 6.5 percent to hit its lowest level since March 2012 to Rs 295.

Glenmark Pharmaceuticals Ltd. received a warning letter from the U.S. Food and Drug Administration for its Baddi facility in Himachal Pradesh, according to an exchange notification.

The company is committed to working along with the regulator to implement all the necessary corrective actions required to address the concerns raised in the letter, the Glenn Saldanha-led company said in the filing, adding that it does not see any financial impact on account of the development.

The trading volume was almost five times the 20-day average for this time f the day, Bloomberg data showed.

Shares of the training services provider rose as much as 2.1 percent to Rs 92.55 apiece.

The company’s board has fixed Oct. 18 as the record date for determining the shareholders eligible to participate in the buyback of equity shares, according to an exchange filing. The company will buy up to 2.68 crore shares at Rs 125 each aggregating to a total amount of Rs 335 crore.

The stock advanced 36 percent so far this year compared to a 9.4 percent gain on the Sensex.

Indian equity benchmarks fluctuated between gains and losses in today’s opening trade.

The S&P BSE Sensex fell 0.05 percent to 37,656.47 and the NSE Nifty 50 declined 0.25 percent to 11142.50. The broader markets represented by the NSE Nifty 500 Index fell 0.48 percent.

The market breadth was tilted in favour of sellers. About 908 stocks declined and 545 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Media Index’s 3.49 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.35 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency weakened as much as 0.14 percent to 70.99 against the greenback.

Futures

• Nifty October futures closed at 11215, premium of 40.4 points versus 47.8 points
• Nifty October futures down 2 percent, sheds 3.5 lakh shares in open interest
• Nifty Bank futures closed at 27,853.7, premium of 121.9 points versus 156.8
• Nifty Bank October futures open interest up 4 percent, adds 58.9k shares in open interest

Options

• Nifty PCR at 0.97 versus 1.17 (across all series)

Nifty Monthly Expiry: Oct. 10

• Max open interest on call side at 11,500 (24.2 lakh shares)
• Max open interest on put side at 11,200 (10.5 lakh shares)
• Open interest addition seen at 11,300C (+14 lakh shares), 11,500C (11 lakh shares)

Nifty Monthly Expiry: Oct. 31

• Max open interest on call side at 12,000 (25.5 lakh shares)
• Max open interest on put side at 11,000 (24.3 lakh shares)

• Wall Street benchmarks advanced on Friday after solid U.S. hiring data quelled recession fears without crushing the odds of further Federal Reserve easing.
• Oil held its biggest weekly decline since July ahead of the trade talks, as a string of disappointing data sparks fears of an economic slowdown.
• Hong Kong markets are closed for a holiday, leaving traders with limited options to respond -- or not -- to escalating violence in the city, with protesters setting fires and vandalizing train stations and banks over the weekend.
• China is also shut, and Sydney has a holiday Monday, also limiting trading.

Get your daily fix of global markets here.

• Container Corporation of India to contest DGFT claim on benefit under export scheme program. The company says it had claimed a benefit of Rs 1,044 crore for FY16-19, but DGFT said that claims up to Rs 861 crore are not eligible for the export benefit. This is subject to further verification by the authorities central licensing area office.
• Bosch said that at its various plants belonging to Powertrain Solutions division, would continue to observe ‘no production days’ for up to 10 days per month per plant during the third quarter of the FY20.
• Talwalkars Healthclubs has defaulted on payment of two NCDs and a term loan aggregating to Rs 63.54 crore. The default is on interest and principal for two NCDs issued to Laxmi Vilas Bank for Rs 54.76 crore, where the due dates were Aug. 20 and Oct. 3. It also defaulted on payment of interest and principal amount for a term loan given by Axis Bank, South Indian Bank, Hero Fincorp, Indian Bank and Andhra Bank aggregating to Rs 8.78 crore, which fell due on July 31. Company said that it has Rs 463.15 crore worth of total borrowings and is in discussion with its bankers for restructuring of its debt obligations.
• Talwalkars Better Value Fitness has defaulted on payment of an NCD and a term loan aggregating to Rs 32.37 crore. The default is on interest and principal for NCD issued to Laxmi Vilas Bank for Rs 27.38 crore, where the due date was Oct. 4. It also defaulted on payment of interest and principal for a term loan given by Axis Bank, South Indian Bank and Andhra Bank aggregating to Rs 4.99 crore, which fell due on July 31. Company said that it has Rs 203.86 crore worth of total borrowings.
• Reliance Home Finance said that it is in discussions with several potential strategic and PE partners for equity infusion into the business, accompanied with acquisition of complete management control. Reliance Capital will continue as a minority financial investor. The delay in ongoing securitisation/monetisation proposals have resulted in delay on principal repayments of Rs 542 crore to around 5-6 banks. Company expects to regularize all such repayments very shortly.
• HDFC said that its original cost of investment in RBL Bank is Rs 59 crore. As on June 30, the market value stood at Rs 562 crore. From April onwards due to transition to Ind AS a large part was the gain was adjusted in the transition reserve consequent to a drop in shares of RBL Bank. The market value of the investment on Sept. 30 stood at Rs 290 crore. Due to accounting norms, an amount of Rs 272 crore has been debited in statement of profit and loss account for the September quarter. The Corporation said that it stands at a gain of Rs 231 crore from the investment in RBL Bank.
• Zee Entertainment Enterprises: Promoter Essel Media Ventures created an encumbrance over the 10.28 crore shares, representing 10.71 percent stake in the company in favor of VTB Capital. The encumbrance was created pursuant to the loan agreement executed on September 2017.

• Ashok Leyland said that its plants at various locations will be observing non-working days ranging from 2-15 days during October.
• Embassy Office Parks REIT: Certain sponsor group members have created a pledge of 33.2 crore units, which constitute 43.02 percent of the total outstanding units of the REIT with a value of Rs 12,392 crore in favour of Deutsche Bank. This is in relation to the credit facility of Rs 4,169 crore availed by the borrower I-REIT ML (NQ) from specific overseas banks. Pledge was created on June 24. Security cover ratio as on date of creation of pledge was 2.97 times. Blackstone Sponsor Group holds 55.3 percent of the total units.
• Tata Motors has won order for 300 electric buses from Ahmedabad Janmarg
• Lupin has launched Mycophenolate Mofetil Capsules. Lupin’s alliance partner Concord Biotech had received an approval from U.S. FDA.
• VST Tillers Tractors September Sales: Power Tillers sales up 4 percent at 5,609 units versus 5,396 units. Tractors sales up 5 percent at 2,201 units versus 2,087 units.
• Future Retail: IDBI Trusteeship Services created pledge of 1.1 crore shares on behalf of Aoin Investments and ICICI Venture Employee Welfare Trust on Oct. 1.
• Wipro has completed the acquisition of International TechneGroup on Oct. 3.
• NHPC has signed agreement for implementation of the approved resolution plan submitted by the company for takeover and resolution of Lance Teesta Hydro Power Limited, who was implementing the 500 MW project in Sikkim. NHPC has offered Rs 897.5 crore as resolution plan proceeds.
• Oriental Bank of Commerce has reduced its repo rate component linked Retail and MSME loan products by 25 basis points with effect from Oct. 5.
• NIIT: Board has fixed Oct. 18 as the record date for share buyback of the company.
• Info Edge to acquire 20.25 percent stake in Greytip Software for Rs 35 crore. The target company deals with in human resource and payroll solutions. Company clarified on the news of Zomato’s fundraising that no formal proposal has been sent to the Board.
• Power Grid Corporation has been declared lowest bidder for 765kV transmission project in Rajasthan for Rs 10.24 crore.
• BEML received order worth Rs 729 crore from Delhi Metro Corporation.
• JSW Steel has raised $400 million by allotment of notes.

Good Morning!.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.23 percent to 11,385 as of 8:10 a.m. China and Hong Kong exchanges remained closed on account of National Day while Japan markets traded lower.

U.S. stock futures fell, the yen edged up and the yuan slipped in early trading Monday after a report that China may be increasingly reluctant to agree to a broad trade deal with the Trump administration.

The report from Bloomberg also left Japanese stocks with limited gains in the wake of a solid rally in the S&P 500 Index on Friday.

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