Sensex, Nifty Close At Two-Week High

Indian equity indices ended higher for the third straight session driven by a rally in automakers.

The S&P BSE Sensex rose 0.76 percent to 38,506.09 and the NSE Nifty 50 rose 0.77 percent to 11,428.30 at close. The broader markets represented by the NSE Nifty 500 Index rose 0.67 percent.

An investor is advised to bet on quality large-cap stocks or on Nifty-based exchange-traded funds in the current volatile market environment. That’s according to Sameer Kalra, founder & head of research at Target Investing.

However, the market breadth was tilted in favour of sellers. About 861 stocks advanced and 912 declined on the National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Auto index’s 2.2 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.45 percent.

Shares of the Bajaj group company declined 15.2 percent intraday to Rs 195.10—its lowest level in nearly six years.

Around 3.24 crore shares or 22 percent equity traded in a large trade, according to Bloomberg data. Buyers and sellers were not known immediately.

According to the latest exchange filing, the promoter entity Bajaj Resources had a holding in excess of 20 percent. Nearly 63 percent of the promoter holding, that is, 5.56 crore shares are pledged.

An investor is advised to bet on quality large-cap stocks or on Nifty-based exchange-traded funds in the current volatile market environment. That’s according to Sameer Kalra, founder & head of research at Target Investing.

“We have seen only a basket of stocks working out over the past few weeks,” said Kalra in an interview to BloombergQuint. “Stay cautious and participate in those 10 stocks such as Hindustan Unilever, HDFC, HDFC Bank and Reliance Industries or the Nifty ETF is a better play till the situation improves.”

Indian equity benchmarks traded higher in the afternoon session led by a rally in automakers.

The S&P BSE Sensex rose 0.95 percent to 38,579.26 and the NSE Nifty 50 rose 0.96 percent to 11450.10. The broader markets represented by the NSE Nifty 500 Index rose 0.92 percent.

Nifty Index is likely to strengthen further on sustaining above 11,400 levels, according to Karvy Stock Broking’s daily technical report. “On the upside, 11400-11420 would work as an immediate resistance, moving above which 11500-11550 would be the next level to watch for,” the report said.

The market breadth was tilted in favour of buyers. About 929 stocks advanced and 817 declined on the National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Auto index’s 2.2 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.45 percent.

Shares of the local search engine operator declined 6.3 percent intraday to Rs 572.10 each.

The firm’s platform was found to contain a security flaw through which a user account could potentially be hacked, said an Economic Times report. However, Just Dial said that the flaw has been fixed and no data was lost, in an exchange filing.

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

Shares of the software exporter rose for the fourth day after gaining as much as 1.2 percent to Rs 1,099.15 apiece.

Equinor, the largest of oil and gas in the Nordic energy market, has extended its cloud and IT Infrastructure services partnership with HCL Technologies, according to an exchange filing.

The stock traded at 14 times its estimated earnings per share the coming year, Bloomberg data showed.

Shares of the Reliance Industries-owned media firm erased gains to trade at Rs 20.25 each.

The company’s net loss narrowed to Rs 59 crore from Rs 99 crore in the previous quarter, according to its exchange filing.

Q2 Results (Year-on-Year)

• Revenue down 5.1 percent to Rs 1,173.8 crore.
• Ebitda down 17.1 percent to Rs 77.2 crore.
• Operating margin at 6.6 percent versus 7.5 percent.

The stock has fallen 56 percent in the last 12 months compared with 10 percent fall in the Sensex.

Shares of the utility services provider soared 12.4 percent, its biggest intraday jump in nearly seven months, to Rs 253 apiece.

The company completed the acquisition of a special purpose vehicle project incorporated by REC Transmission Projects Company, according to an exchange filing. Adani Transmission had won this project through a Tariff Based Competitive Bidding process and received the letter of intent in July 2019, the filing said.

The trading volume was over 10 times the 20-day average for this time of the day, Bloomberg data showed.

Shares of the private lender were locked in the lower circuit of 5 percent for the eleventh straight session. The stock traded at Rs 22.05 each.

The Reserve Bank of India imposed a penalty of Rs 1 crore due to violation of RBI Income Recognition and Asset Classification norms on Monday.

However, the action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, RBI said.

The stock declined 73 percent in the last 12 months compared with a 10 percent gain in the Sensex.

Shares of Eicher Motors extended gains for the third straight trading session. The stock rose as much as 4.5 percent to Rs 19,161.90.

The stock has advanced 6.2 percent in the past five days and 15 percent in the past 30 days. The scrip is the best performer on NSE Nifty 50 and NSE Nifty Auto Index. Eicher Motors traded at 25 times its estimated earnings per share for the coming year, according to Bloomberg data.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Auto index’s 1.3 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.7 percent.

Indian equity benchmarks were trading near day’s high, led by the gains in HDFC Bank Ltd. and Kotak Mahindra Bank Ltd.

The S&P BSE Sensex rose 0.55 percent to 38,426 as of 11 a.m. and the NSE Nifty 50 rose 0.48 percent to 11,396. The broader markets represented by the NSE Nifty 500 Index rose 0.39 percent.

Nifty Index is likely to strengthen further on sustaining above 11,400 levels, according Karvy Stock Broking’s daily technical report. “On the upside, 11400-11420 would work as an immediate resistance, moving above which 11500-11550 would be the next level to watch for,” the report said.

The market breadth was tilted in favour of buyers. About 857 stocks advanced and 778 declined on the National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Auto index’s 1.3 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.7 percent.

Shares of Jindal Drilling & Industries rose as much as 13.2 percent, the most in over a month, to Rs 84.80.

The company received won a three-year contract from state-run Oil and Natural Gas Corporation for offshore rig, according to its stock exchange filing.

Trading volume was more than 20 times its 20-day average, Bloomberg data showed. Of the shares traded, 55 percent were at the ask price and 39 percent were at the bid.

Nifty’s 11,400 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the weekly contract, which is set to expire on Thursday, rose 47.7 percent to Rs 67. Over 4.82 lakh shares were added to the open interest which stood at over 21.58 lakh shares.

Hindustan Unilever (Q2, YoY)

• Stock rose as much as 1.9 percent to Rs 2,053.20.
• Revenue rose 6.7 percent to Rs 9,852 crore.
• Net profit rose 21.2 percent to Rs 1,848 crore.
• Ebitda rose 21 percent to Rs 2,443 crore.
• Margin stood at 24.8 percent versus 21.9 percent.
• Volume growth stood at 5 percent.
• Declared dividend of Rs 11 per share.

GTPL Hathway (Q2, YoY)

• Stock swung to a drop of as much as 3.3 percent from a jump of 7.1 percent
• Revenue rose 94.9 percent to Rs 609 crore.
• Revenue (Ex EPC) rose 41 percent to Rs 447 crore.
• Net profit rose 97.9 percent to Rs 28.9 crore.
• Ebitda rose 40.6 percent to Rs 119.8 crore.
• Margin stood at 19.7 percent versus 27.3 percent.

Delta Corp (Q2, YoY)

• Stock fell as much as 3.5 percent to Rs 164.95.
• Revenue flat at Rs 200.8 crore versus Rs 201.1 crore. (Adjusted with GST and Intragrorose Transactions).
• Net profit rose 22.7 percent to Rs 59 crore.
• EBITDA rose 3.4 percent to Rs 81.3 crore.
• Margin stood at 40.5 percent versus 39.1 percent.

Indian equity benchmarks traded higher, led by the gains in HDFC Bank Ltd. and Tata Consultancy Services Ltd.

The S&P BSE Sensex rose 0.43 percent to 38,376 as of 10 a.m. and the NSE Nifty 50 rose 0.37 percent to 11,383.10. The broader markets represented by the NSE Nifty 500 Index rose 0.28 percent.

Shares of Infosys extended declines for the second consecutive trading session. The stock fell as much as 2.6 percent to Rs 2.68. The scrip was the worst performer on Sensex and Nifty. The key had announced its September quarter results on Friday.

Key Earnings Highlights (Q2, QoQ)

• Dollar revenue rose 2.5 percent to $3210 million.
• Revenue rose 3.8 percent to Rs 22,629 crore
• Net profit rose 6.2 percent to Rs 4,037 crore.
• EBIT rose 9.9 percent to Rs 4,912 crore.
• Margin stood at 21.7 percent versus 20.5 percent.
• Declared dividend of Rs 8 per share.

Shares of IRCTC erased opening gains and fell as much as 3.5 percent to Rs 702.

The stock advanced 128 percent on their first day of trade, the best debut for a local company in two years, driven by a strong demand for its offering.

The stock listed at Rs 644 apiece yesterday—a premium of 101 percent over its issue price of Rs 320 a share—on the BSE Ltd. Thereafter, the scrip closed over 13.12 percent higher to Rs 728.6.

Shares of RBL Bank extended declines for the fourth consecutive trading session. The stock fell as much as 6 percent to hit an all-time low at Rs 243.30

The scrip declined 16 percent in the past five days and fell 31 percent in the past 30 days. RBL Bank traded at 17 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Future Lifestyle Fashions rose as much as 4.2 percent to Rs 419.80.

About 1.45 crore shares or 7.2 percent equity changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Trading volume was 1,096 times tsi 20-day average, according to Bloomberg data. Of the shares traded, 75 percent were at the ask price and 18 percent were at the bid.

Shares of Indiabulls Housing Finance fell as much as 7.5 percent to Rs 183.05. The stock extended declines for the second consecutive trading session.

The company’s board intends to go for a buyback of shares and will take final decision in this regard after receiving concurrence from market regulator Securities and Exchange Board of India.

The Relative Strength Index was at 21, indicating that the stock may be oversold. The scrip traded at 2.5 times its estimated forward earnings per share compared to 8.8 times for the historical average, according to Bloomberg data.

Indian equity benchmarks opened marginally higher. The benchmarks indices gained for the third consecutive trading session.

The S&P BSE Sensex rose 0.3 percent to 38,330 and the NSE Nifty 50 rose 0.23 percent to 11,367.35. The broader markets represented by the NSE Nifty 500 Index rose 0.17 percent.

The market breadth was tilted in favour of buyers. About 818 stocks advanced and 560 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty FMCG Index’s 0.5 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.7 percent.

Futures

• Nifty October futures closed at 11,336.3, discount of 5 points versus 7 points premium.
• Nifty Oct futures up 0.1 percent, sheds 3.9 lakh shares in OI.
• Nifty Bank futures closed at 28,910.
• Nifty Bank October futures OI up 0.25 percent, adds 15,000 shares in OI.

Options

• Nifty PCR at 1.17 versus 1.13 (across all series)

Nifty Weekly Expiry: Oct 17

• Max OI on call side at 11,400 (16.7 lakh shares)
• Max OI on put side at 11,300 (14 lakh shares)
• OI addition seen at 11450C (+3.2 lakh shares), 11,600C (+3.2 lakh shares), 11,300P (+3.4 lakh shares)

Nifty Monthly Expiry: Oct 31

• Max OI on call side at 12,000 (24.6 lakh shares)
• Max OI on put side at 11,000 (30.5 lakh shares)

The Indian rupee opened marginally lower against the U.S. dollar. The Home currency later depreciated as much as 0.07 percent against the greenback.

Indain equity benchmarks are set for a positive start.

The S&P BSE Sensex rose 0.42 percent during the pre-market trade and the NSE Nifty 50 rose 0.52 percent to 11,400

• Eicher Motors to meet Westwood Global Investments on Oct. 15
• Great Eastern Shipping to meet Ambit Capital on Oct. 15

• Satia Industries ex-date for share split from Rs 10 to Rs 5 per share.
• FCS Software Solutions, Wendt, Arshiya, Reliance Home Finance, Kwality to move into short term ASM Framework.
• Bajaj Hindusthan Sugar, Gyscoal Alloys to move out of short term ASM Framework.
• Reliance Infrastructure price band revised to 10 percent.

• India to report September trade balance data.

• Karnataka-based Vishwaraj Sugar Industries to make its stock market debut after its Rs 60-crore IPO was subscribed 1.12 times, according to NSE data.

• HDFC has reduced Retail Prime Lending Rate by 10 basis points. Lending rate on adjustable rate home loans reduced by 10 basis points. New rates with effect from Oct. 15. New Rates will now range between 8.25 percent to 8.65 percent.
• Zee Entertainment Enterprises: VTB Capital acquired the right to direct disposal of 10.71 percent stake in the company held by promoter Essel Media Ventures, if required. VTB Capital also stated that it would willingly cease all enforcement action and release encumbrances upon repayment of outstanding amounts under the loan facility.
• Indiabulls Housing Finance: Board intends to go for a buyback of shares and will take final decision in this regard after receiving concurrence from market regulator Securities and Exchange Board of India.
• HDIL: Enforcement Directorate seized and identified movable and immovable assets worth more than Rs 38,30 crore owned by the company, its Directors / Promoters, PMC Bank officials and others related entities in the PMC Bank fraud case.
• Indian Oil Corporation: ExxonMobil announced its LNG collaborations in India. The company has allied with Indian Oil to explore growth opportunities in the country. Collaboration to explore ways to accelerate India’s access to cost-effective natural gas.
• HPCL is facing rising freight rates on term and spot purchases due to sanctions on China’s COSCO Shipping, Bloomberg reported quoting an unidentified HPCL official. The Freight hikes have mainly impacted company’s purchases through VLCC and Suezmax carriers. The rates have almost doubled since the sanctions were announced, the official said that if freight rates keep increasing and product cracks doesn’t improve, GRMs would get impacted.
• JSW Energy’s resolution plan for Ind-Barath Utka which owns 700 MW under-construction thermal power plant in Odisha gets approved by committee of creditors. Transaction is subject to necessary regulatory approvals including those from National Company Law Tribunal.
• Yes Bank stated that they have sold 5.1 crore shares or 6.77 percent equity of Fortis Healthcare in various tranches from June 30 till Oct. 14.
• Adani Transmission signed agreement and completed the acquisition of SPV WRSS XXI (A) Transco, incorporated by REC Transmission Projects Company. Adani Transmission had won this project through a Tariff Based Competitive Bidding process, and received the Letter of Intent in July 2019 and the company will build own, operate and maintain the transmission project in the state of Gujarat for a period of 35 years.
• Lemon Tree Hotels has launched 142 room Hotel in Kolkata.
• ONGC: Exxon Mobil and the company will identify areas for deep water exploration in east and west coast of India, Bloomberg reported quoting Oil Minister Dharmendra Pradhan. Oil and Natural Gas Corporation and Exxon Mobil will also identify areas in open acreage for submission of expression of interest, and joint bidding for future auction rounds, the report added.
• Technocraft Industries has started production of Melange Yarn at Murbad and started trial production of cotton yarn at its new unit at Amaravati.
• Canara Bank said that’s its two employee unions will be on strike on Oct. 22.
• Andhra Bank decreased its MCLR and Repo Linked Rates across various tenors. One-month Marginal Cost of Funds based Lending Rate at 7.85 percent and one-year MCLR at 8.3 percent with effect from Oct. 15. The Repo Linked Rate would be reduced from 8.35 percent to 8.1 percent with effect from Nov. 1.
• Syndicate Bank: The Reserve Bank of India imposed penalty of Rs 75 lakh on account of delay in fraud reporting and upfront disbursal of housing loans in cases of incomplete/ under-construction/green field housing projects.
• Union Bank of India has set issue price at Rs 70.9 per share for 166 crore shares aggregating to Rs 11,768 crore, which will be issued to the government. Post the capital infusion program, government’s stake will rise from 74.27 percent to 86.75 percent.
• Lakshmi Vilas Bank: RBI imposed penalty of Rs 1 crore due to violation of RBI Income Recognition and Asset Classification norms.

Nifty Earnings To Watch

• Wipro

Other Earnings To Watch

• ACC
• Karnataka Bank
• MCX
• TV18 Broadcast
• SBI Life Insurance
• Network18 Media & Investments
• Reliance Industrial Infrastructure
• Apollo Tricoat Tubes
• Alicon Castalloy
• Z.F.Steering Gear
• Paisalo Digital

Earnings Reaction To Watch

Hindustan Unilever (Q2, YoY)

• Revenue rose 6.7 percent to Rs 9,852 crore.
• Net profit rose 21.2 percent to Rs 1,848 crore.
• Ebitda rose 21 percent to Rs 2,443 crore.
• Margin stood at 24.8 percent versus 21.9 percent.
• Volume growth stood at 5 percent.
• Declared dividend of Rs 11 per share.

GTPL Hathway (Q2, YoY)

• Revenue rose 94.9 percent to Rs 609 crore.
• Revenue (Ex EPC) rose 41 percent to Rs 447 crore.
• Net profit rose 97.9 percent to Rs 28.9 crore.
• Ebitda rose 40.6 percent to Rs 119.8 crore.
• Margin stood at 19.7 percent versus 27.3 percent.

Delta Corp (Q2, YoY)

• Revenue flat at Rs 200.8 crore versus Rs 201.1 crore. (Adjusted with GST and Intragrorose Transactions).
• Net profit rose 22.7 percent to Rs 59 crore.
• EBITDA rose 3.4 percent to Rs 81.3 crore.
• Margin stood at 40.5 percent versus 39.1 percent.

• Oil dropped the most in two weeks amid concern that the recent U.S.-China trade talks won’t lead to a deal.
• U.S. equities declined as investors mulled the implications of the partial trade deal reached last week between the world’s two largest economies.
• The pound spiked briefly on Tuesday after a U.K. Telegraph report that a Brexit deal appears to be taking shape.

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Asian stocks rose, with the biggest gains in Japan, as investors continued to mull trade negotiations after China said it wanted more talks before signing a deal.

Japan’s shares jumped as they opened after a holiday in a catch-up move to positive U.S.-China trade progress on Friday. Australian and Korean shares were little changed. S&P 500 Index futures edged higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.38 percent to 11,378 as of 8:30 a.m.

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