Sensex, Nifty Gain For The Second Session Led By Metal, Auto Stocks

Indian equity benchmarks closed higher for the second consecutive session, led by auto, metals and consumer durables stocks.

The S&P BSE Sensex index rose 0.63% to 61,350.26. The NSE Nifty 50 Index added nearly 0.8% to 18,268.40. Reliance Industries Ltd. contributed the most to the index gain, increasing 2.3%. Tata Motors Ltd. had the largest increase, rising 6.0%. Today, 39 of 50 shares rose, while 11 fell.

The broader indexes outperformed their larger peers with both the S&P BSE MidCap index and the S&P BSE SmallCap indexes rising 2%. All the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Realty index rising over 3.4% and SYP BSE Consumer durables & metal indexes added nearly 3%.

The market breadth was skewed in favour of bulls. About 2,227 stocks advanced, 1,048 declined and 144 remained unchanged.

• Reliance Industries Ltd. and BP Plc.'s fuel and mobility joint venture Reliance BP Mobility Ltd. launched its first Jio-BP branded mobility station at Navde near Mumbai.

• In an exchange filing, Reliance said that the existing network of over 1,400 fuel pumps will be re-branded as Jio-BP.

• Jio-BP mobility stations across the country will offer additivised fuel at no extra cost.

• Jio-BP will also set up a network of EV charging stations and battery swap stations.

• It will also offer a network of express oil change outlets in partnership with Castrol.

Source: RIL Statement

Shares of TCI Express Ltd. rose over 15% in intraday trade to a record Rs 1,895 apiece after the company reported strong growth in second quarter revenue and net income, on Friday.

ICICI Direct Research expected newer services like rail express and pharma cold chain to contribute 25% of revenue from the current 15%.

The brokerage said that automation of sorting centers would halve the laden time in moving the goods in and out as it bestowed TCI Express a 'buy' recommendation with a target price of Rs 1,950.

Of the 15 analysts tracking the company, 11 maintained 'buy', three maintained 'hold' and one maintained 'sell' recommendation. The overall consensus price of analysts tracked by Bloomberg implied a downside of 8%.

Trading volume on the stock was 21.3 times the 30-day average volume for this time of the day. The relative strength index on the stock was at 78, suggesting it may be overbought.

• HDFC Asset Management Co. is lower for the seventh straight day, on track for the longest losing streak since the period ended Sept. 24, 2020.

• HDFC AMC has lost a total of 7.3% during the streak while the S&P BSE Sensex Index fell 0.1%. Today, the stock fell 1.2% to Rs 2,735.50.

• The relative strength index on the stock was 25, suggesting it may be oversold.

• Board meeting to consider and approve quarterly financial results of the company cancelled.

• Cancellation is due to lack of quorum.

• Next date of meeting will be duly informed with fresh notice.

Source: Company filing

• HDFC Life raised to 'buy' at KR Choksey; Price target: Rs 790

• Ramco Cements raised to 'hold' at Prabhudas Lilladher; Price target: Rs 990

Source: Bloomberg

India's stock benchmarks pared morning gains and remained little changed as gains in auto, realty and consumer durables stocks were offset by losses in private bank stocks.

The S&P BSE Sensex shed 0.10% at 60,967.05. The NSE Nifty 50 index remained little changed at 18,139.15. Housing Development Finance Corp. contributed the most to the index gain, increasing 1.1%. Tata Motors Ltd. had the largest increase, rising 4.1%. In midday trading, 34 of 50 shares rose, while 16 fell.

The broader indices outperformed their larger peers with S&P BSE MidCap rising 1% and S&P BSE SmallCap indexes adding 1.5%. Barring S&P BSE Finance, S&P BSE Information Technology, S&P BSE Capital Goods and S&P BSE Teck, all the other 15 sectoral indexes compiled by the BSE Ltd. advanced , with S&P BSE ‌Realty, Consumer Discretionary and Consumer Durables indexes rising over 2%.

The market breadth was skewed in favour of bulls. About 2,059 stocks advanced, 1,091 declined and 166 remained unchanged.

• Oil and Natural Gas Corporation Ltd. has 1.05 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• Infosys Ltd. has been selected by Posten Norge as a strategic partner to digitally transform its I.T. service management function.

• The transformation will involve implementation of ServiceNow platform and leverage AI-Power ready to deploy solution of Infosys Cobalt.

• Posten Norge AS is a Nordic postal and logistics group that develops and delivers integrated solutions in postal services, communications and logistics, with the Nordic region as its home market.

Source: Exchange Filing

• HG Infra secured the Rs 1,338.27 crore (NHAI bid project cost) project to develop the 44 kilometre six lane Kaliagura-Baunsaguar section of NH under Raipur-Vishakhapatnam Economics Corridor in Odisha. The company's bid project cost was Rs 1,492.11 crore.

• The company also bagged Rs 958.98 crore (NHAI bid project cost) order to develop the 45.50 kilometer Baunsaguar-Baraja section in Odisha. The company's bid project cost was Rs 1,123.11 crore.

• Completion period for the both the projects is 730 days.

• All 11 analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 12.4.

• The RSI on the stock was 74, suggesting it may be overbought. Trading volume on the stock was 42 times 30-day average volume at this time of the day.

• State Bank of India Ltd. has 1.12 million shares change hands in a bunched trade.

• Details of buyers and sellers are not known immediately.

Source: Bloomberg

Shares of Canara Bank Ltd. shed over 3.7% in intraday trade to Rs 194.4 apiece, after the company reported second quarter numbers today.

September Quarter Results (Consolidated)

• Net income at Rs 1,100.59 crore vs Rs 465.58 crore YoY (Bloomberg Consensus estimate: Rs 1,310 crore)

• Interest income at Rs 17,336.33 vs Rs 13,097.99 crore YoY

• Interest expense at Rs 10,791.47 crore vs Rs 11,387.63 crore YoY

• Gross NPA at 8.42% vs 8.50 QoQ

Of the 16 analysts tracking the company, 11 maintained 'buy', two maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of over 9%.

• The global shortage of semiconductors with moderate India's Passenger Vehicle sales to 11-13% this fiscal, around 400-600bps lower than normal levels.

• Preference for personal mobility has risen, leading to more-than-expected demand for PVs.

• Consumers also preferring vehicles with more electronics-driven features or a higher semiconductor quotient.

• The upshot of the chip shortage has been PV production cuts, which will have a bearing on the festive sales.

• Foresee tempered overall growth for PVs this fiscal

Source: CRISIL Ratings Analysis

Allcargo Logistics Ltd. has clarified that it did not participate in the IPL bidding process. In an exchange filing, the integrated logistics provider said that the company's promoters' family had evaluated the opportunity.

The company also added that while it supported sportspersons, it did not have business interest in sports.

• Indian rupee falls for a third day amid high crude prices which threatens to increase the import bill of the net oil-importing nation. Sovereign bond traders await a Rs 20,625 crore ($2.75b) sale of debt by states. 

• USD/INR rose 0.1% to 75.1475

• 10-year bond yields steady at 6.35%

Source: Bloomberg

• Goa Carbon Ltd. has resumed operations at the company's Bilaspur Unit in Chhattisgarh.

• In an exchange filing, Goa Carbon said that the kiln has been lit up from yesterday and normal production is likely to resume soon.

• Shares of Goa Carbon rose nearly 5.5% in intraday trade, the most in over a week, to Rs 388 apiece.

• Polycab India raised to 'buy' at Equirus Securities Pvt Ltd; Price target: Rs 2,802

• Tech Mahindra raised to 'buy' at IIFL; Price target: Rs 1,900

• Ramco Cements rates 'new buy' at YES Research; Price target: Rs 1,200

Source: Bloomberg

• Yields along the India sovereign yield curve were mixed, with 4-year bonds moving the most in Tuesday morning trading.

• The 4-year yield rose 1.2bps to 5.383%

• The 10-year yield fell 0.5bps to 6.345%

• The 14-year yield fell 0.6bps to 6.838%

• The 4-year-10-year yield spread was 96.2bps, vs previous close 97.9bps

Source: Bloomberg

Shares of Orient Cement Ltd. rose over 8% in intraday trade to Rs 158.7 apiece after the company reported growth in net profit and revenue in the September quarter.

Orient Cement Q2FY22 (Consolidated, YoY)

• Revenue up 28% at Rs 613.12 crore Vs Rs 477.49 crore

• Net profit up 63% at Rs 56.88 crore Vs Rs 34.81 crore

• Ebitda up 18% at Rs 133.97 crore Vs Rs 113.23 crore

• Margin at 21.9% Vs 23.7%

Of the 15 analysts tracking the company, 14 maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 31.1%. Trading volume was 4.5 times the 30-day average volume, for this time of the day.

• CSB Bank raised to 'buy' at Arihant Capital; Price target: Rs 371

• Lemon Tree Hotels raised to 'buy' at Edel weiss Capital; Price target Rs 56

• Polycab India cut to 'reduce' at Kotak Securities; Price target: Rs 2,250

• Kajaria Ceramics raised to 'buy' at Canara Bank; Price target: Rs 1,357

Source: Bloomberg

Shares of Ceat Ltd. fell nearly 8% in intraday trade, the most in 16 months, to Rs 1,191 apiece after the second quarter net income missed average analyst estimate.

Ceat Q2FY22 (Consolidated, YoY)

• Revenue up 24% at Rs 2,451.78 crore Vs Rs 1,978.47 crore

• Net profit down 77% at Rs 41.98 crore Vs Rs 181.86 crore

• Ebitda down 25% at Rs 220.33 crore Vs Rs 292.46 crore

• Margin 9% Vs 14.8% Approved up to Rs 500 crore bonds issue

Of the 25 analysts tracking the company, 13 maintained 'buy', five maintained 'hold' and seven maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14%.

• Fino Payments Bank expects to raise Rs 1,200 crore through IPO at upper band

• Offer includes Rs 300 crore worth fresh issue of equity shares and 1.56 crore shares in offer for sale

• Offer opens on October 29 and closes on November 2.

Source: Fino Payments Bank Public Announcement

Indian equity benchmarks opened higher, aided by gains in information technology stocks, amid positive global cues as a record close for S&P500 and earnings lifted sentiment.

The S&P BSE Sensex rose 0.43% to 61,226.85. The NSE Nifty 50 advanced by a similar magnitude to 18,198.75. Reliance Industries Ltd. contributed the most to the index gain, increasing 0.7%. Tech Mahindra Ltd. had the largest increase, rising 6.5%. In early trading, 42 of 50 shares rose, while 8 fell.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap adding over 0.3%. All the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Information Technology rising over 3.5%.

The market breadth was skewed in favour of bulls. About 1,637 stocks advanced, 596 declined and 85 remained unchanged.

Tesla’s Asian suppliers lead advances in EV-related shares after Hertz Global placed an order for 100,000 Teslas in the single-largest purchase ever for electric vehicles. The Hong Kong bourse’s approval of BYD Co.’s plan to spin off its semiconductor business also buoyed sentiment.

In Focus: Tata Motors, TVS Motor and Motherson Sumi

• Energy trading platform, Indian Energy Exchange Ltd. commenced trade in Energy Saving Certificates (ESCerts) under Perform, Achieve & Trade Cycle-II (PAT-II).

• The trading on the exchange will take place once a week on Tuesday.

• PAT-II intends to achieve overal energy saving of 8.87 MTOE and covers 621 Designated Consumers across 11 energy intensive industry sectors.

Source: Exchange Filing

Glenmark Pharmaceuticals Ltd. launched a fixed dose combination of its novel, patent protected Sodium Glucose Co-Transporter Inhibitor (SGLT2i)- Remogliflozin Etabonate and another widely used DPP4 inhibitor - Vildagliptin, with Metformin, as the treatment of type 2 diabetes. Glenmark has launched the combination under two brand names - Remo MV and Remozen MV.

Glenmark is the first company in the world to launch this specific combination, the company said in an exchange filing.

Byju’s has hired investment banks to raise a minimum of $500 million debt via term loan B, or TLB, in the U.S. as India’s most valuable startup looks to refill its war chest after making a string of acquisitions, Mint Newspaper reported citing people it didn’t identify.

Byju’s will use the funds for acquisition and working capital, according to the report

• India plans to complete the privatization process for 13 airports run by the state-run Airports Authority of India on public-private-partnership basis, Economic Times reported quoting AAI chairman Sanjeev Kumar.

• Sent list of 13 airports, clubbing 6 small ones and 7 big airports, to India’s civil aviation ministry: Report

• Varanasi with Kushinagar and Gaya; Amritsar with Kangra; Bhubaneswar with Tirupati; Raipur with Aurangabad; Indore with Jabalpur; and Trichy with Hubli: Report

• Airports are on offer for 50 years: Report

Indian bond traders will await a Rs 20,625 crore ($2.75b) sale of debt by states. The rupee may start trading higher along with other emerging Asian peers.

• USD/INR rose 0.3% to 75.0850 on Monday

• 10-year yields fell 1bps to 6.35%

• RBI to hold Rs 2 lakh crore 7-day reverse repo auction Tuesday

• Global funds sell net Rs 2,460 crore of India stocks Monday: NSE

• They sold Rs 159 crore of sovereign bonds under limits available to foreign investors, and added Rs 150 crore of corporate debt

• State-run banks bought Rs 932 crore of sovereign bonds on Oct. 25: CCIL data. Foreign banks sold Rs 573 crore of bonds

Source: Bloomberg

• Devyani International Ltd. rated 'new sell' at Ambit Capital; Price target: Rs 81

• Crompton Greaves Consumer Electricals Ltd. raised to 'buy' at Centrum Broking; Price target: Rs 560

Source: Bloomberg