Private Banks Help Sensex, Nifty Halt Six-Day Losing Streak

Indian equity benchmarks halted their six-day losing streak, their longest since July 25.

The S&P BSE Sensex surged 1.72 percent to close at 38,177 and the NSE Nifty 50 rose 1.68 percent to end at 11,313. The broader markets represented by the NSE Nifty 500 Index advanced 1.52 percent.

The bulls staged a smart comeback led by short covering and stable global cues, Ajit Mishra vice president of research at Religare Broking said in a statement.

“Going forward, we believe the upcoming earnings season would dictate the trend for the Indian markets. We expect that more than the earnings announcement, investors and traders would focus on the outlook provided by the management especially for consumption driven companies. On the global front, market participants would keep a close watch on trade talks between U.S.-China,” Mishra added.

The market breadth was tilted in favour of buyers. About 964 stocks advanced and 821 shares declined on National Stock Exchange.

Ten out of 11 sectoral indices compiled by NSE ended higher, led by the NSE Nifty Bank Index’s 3.7 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.71 percent.

• Ashok Leyland: About 10.5 lakh shares of the company changed hands in a large trade.
• Federal Bank: About 10 lakh shares of the company changed hands in a large trade.

Buyers and sellers were not known immediately.
Source: Bloomberg

Raymond

• Shares halted a three-day losing streak and rose as much as 8.9 percent to Rs 595.50.
• Associate firm to sell Thane land measuring for Rs 700 crore to Virtuous Retail South Asia

JBM Auto

• Stock rose as much as 14.5 percent to Rs 214.90.
• Received orders for supply of 300 CNG and electric buses.

Indiabulls Real Estate

• Stock hit upper circuit of 5 percent
• Company to consider share buyback on Oct. 11

J.Kumar Infraprojects

• Stock rose as much as 19.9 percent, the most since December 2018, to Rs 153.50.
• SEBI clears the company from charges of misrepresentation of financials

Indian equity indices are set to halt six-day losing streak, their longest since July 25.

The S&P BSE Sensex rose 1.7 percent to 38,168 as of 3 p.m. and the NSE Nifty 50 rose 1.64 percent to 11,310. The broader markets represented by the NSE Nifty 500 Index advanced 1.52 percent.

Birla Corp

• Stock fell as much as 2.2 percent to Rs 527.
• Trading volume was 14 times its 20-day average.

Aurobindo Pharma

• Stock rose as much as 5.5 percent to Rs 485.
• Trading volume was more than seven times its 20-day average.

Century Textiles

• Stock rose as much as 8.4 percent to Rs 935.
• Trading volume was almost five times its 20-day average.

CreditAccess Grameen

• Stock fell as much as 4.1 percent to Rs 648.05.
• Trading volume was almost five times its 20-day average.

• Equity Inflows down 28 percent at 6,609 crore
• Total MF Industry saw outflows of Rs 1.51 lakh crore
• Equity AUM up 3.4 percent at 7.01 lakh crore versus Rs 6.79 lakh crore
• Total MF Industry AUM at 25.60 lakh crore versus Rs 25.63 lakh crore
• Liquid Fund Flows saw outflows of Rs 1.40 lakh crore versus Inflows of Rs 79428.2 crore
• Balanced Fund Flows saw outflow of Rs 1930 crore versus outflows of Rs 879.21 crore

Stocks rose in Europe while U.S. index futures turned higher on Wednesday following a mixed session in Asia as investors weighed a host of potential headwinds to looming trade talks between the world’s two biggest economies.

• The Stoxx Europe 600 Index increased 0.2 percent
• Futures on the S&P 500 Index rose 0.3 percent
• The U.K.’s FTSE 100 Index gained 0.3 percent
• The MSCI All-Country World Index was little changed
• The MSCI Emerging Market Index fell 0.3 percent.

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Source: Bloomberg

Indian equity benchmarks extended gains to trade at day’s high

The S&P BSE Sensex rose 1.22 percent to 37,990 as of 2 p.m. and the NSE Nifty 50 rose 1.14 percent to 11,252. The broader markets represented by the NSE Nifty 500 Index advanced nearly 1 percent.

The market breadth was tilted in favour of buyers. About 915 stocks advanced and 819 shares declined on National Stock Exchange.

Shares of the private lender rose as much as 5.1 percent to Rs 1,303.95 each.

The company is scheduled to announce its September quarter results on Thursday. Bloomberg estimate of net profit for the three-month period stood at Rs 1,417 crore.

The stock trades at 16 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the Mumbai-based company rose 2 percent intraday to Rs 291.25.

The company received tentative ANDA approval for its anti-inflammatory drug Dimethyl Fumarate, according to an exchange filing. The drug is a generic version of Biogen Inc’s Tecfidera 1 capsules, the filing said.

The stock declined as much as 51 percent in the past 12 months compared with a 10 percent gain in the Nifty.

Shares of Dr. Reddy’s Laboratories rose as much as 2 percent to Rs 2,668.95.

The company received Establishment Inspection Report from the U.S. FDA for its manufacturing unit in Bollaram, according to its statement on the exchanges. The inspection is classified as Voluntary Action Indicated, it added.

Dr. Reddy’s traded at 19 times its estimated earnings per share for the comin year, according to Bloomberg data.

Shares of Indiabulls Ventures rose 9 percent while shares of Indiabulls Real Estate were locked in upper circuit of 5 percent in today’s trade.

The companies plan to consider buyback of equity shares on Oct. 11.

Indian equity benchmarks traded higher after a shaky start.

The S&P BSE Sensex rose 0.53 percent to 37,735 as of 11:55 a.m. and the NSE Nifty 50 rose 0.53 percent to 11,186. The broader markets represented by the NSE Nifty 500 Index rose 0.5 percent.

The market breadth was tilted in favour of sellers. About 915 stocks declined and 755 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Financial Services Index’s 0.5 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 1 percent.

Shares of Ashoka Buildcon rose as much as 2 percent to Rs 99.40.

The company received an order from SRIT Infra Pvt. Ltd. for worth Rs 313.72 crore, according to its statement on the exchanges.

The stock declined 6.7 percent in the past 12 months compared to a 9.3 percent advance in the Sensex, Bloomberg data showed.

While valuations of Indian companies are looking attractive, investor sentiment is fairly broken, according to Morgan Stanley’s Ridham Desai.

“The equity markets are not just about what the data is but also about what’s priced in. A lot of the bad news is in the price and so stock market valuations are looking particularly attractive,” Desai, head of Equity Research and India Equity Strategist, told Bloomberg News in an interview, adding that investor sentiment is broken due to weak earnings.

Read the full story and watch the interaction here:

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Financial Services Index’s 0.5 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 1 percent.

Shares of State Bank of India fell as much as 1.9 percent to Rs 244.35.

The PSU bank has reduced its MCLR by 10 basis points across all tenors, according to its media statement. The one-year MCLR comes down to 8.05 percent per annum from 8.15 percent per annum with effect from Oct. 10, the statement added.

The stock traded at nine times its estimated earnings per share for the coming year.

Other Highlights:

• SBI to cut savings account deposit rate to 3.25 percent from 3.5 percent, with effect from Nov. 1
• SBI slashes retail term deposit and bulk deposit rate by 10-30 basis points from Oct. 10, for 1-2 year deposits.
• SBI to cut deposit rates on account of adequate liquidity.

Shares of Raymond halted a three-day losing streak and rose as much as 8.9 percent to Rs 595.50.

The company’s associate J. K. Investo Trade (India) Ltd. entered into an agreement with for the sale of land parcel in Thane to Elpis Ventures for Rs 700 crore, according to its statement on the exchanges.

The stock gained 2.6 percent in the past five days and returned 2.1 percent in the past 30 days.

Shares of JBM Auto extended gains for the second consecutive trading session. The stock rose as much as 14.5 percent to Rs 214.90.

The company has received orders for the supply of 300 buses, according to its stock exchange filing. The order will be fully executed before the end of current financial year, the statement added.

The scrip advanced nearly 28 percent in the two days. Trading volume was more than five times its 20-day average, Bloomberg data showed.

Nifty’s 11,200 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Oct. 10, fell 32.06 percent to Rs 25.85. Over 8.35 lakh shares were added to the open interest which stood at over 27.62 lakh shares.

Indian equity benchmarks fluctuated between gains and losses.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 37,518 and 11,117 respectively as of 10 a.m. The broader markets represented by the NSE Nifty 500 Index fell 0.14 percent.

Shares of J. Kumar Infraprojects rose as much as 19.9 percent, the most since December 2018, to Rs 153.50.

Markets regular Securities and Exchange Board of India has cleared the company from charges of misrepresenting books, according to Bloomberg report.

Trading volume was more than 30 times its 20-day average, Bloomberg data showed. Of the shares traded, 34 percent were at the ask price and 44 percent were at the bid.

About 12 lakh shares of Yes Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Piramal Enterprises extended declines for the second consecutive trading session.

The scrip fell as much as 7.1 percent to Rs 1,377. The stock dropped over 13 percent in two trading sessions.

The Relative Strength Index was at 27, indicating that the stock may be oversold. Piramal Enterprises traded at 12.6 times its estimated earnings per share compared to a 17.8 times for the two-year historical average.

Shares of Motilal Oswal Financial Services rose as much as 1.8 percent to Rs 620.95.

About 28 lakh shares changed hands in a large trade during the pre-market session, Bloomberg data showed. Buyers and sellers were not known immediately.

Of the shares traded, 33 percent were at the ask price and 29 percent were at the bid, Bloomberg data showed. The stock declined 4.7 percent in the past 12 months compared to a 9.5 percent gain in the Sensex.

Shares of Minda Industries extended gains for the second consecutive trading session. The stock rose as much as 2.7 percent to Rs 344.

The company is set to acquire 100 percent stake of Delvis Group which is engaged in automotive lighting design and engineering for €21 million (Rs 164 crore). Transaction is subject to appropriate regulatory approvals and is expected to complete in two months.

Trading volume was more than 19 times its 20-day average, according to Bloomberg data. The stock traded at 28 times its estimated earnings per share for the coming year.

Shares of Aurobindo Pharma rose as much as 4.8 percent to Rs 482. The stock had ended 19 percent lower on Monday.

The company clarified that none of the observations that were issued by the U.S. FDA were related to data integrity and the drugmaker said it is confident of addressing them within the stipulated timeline.

The Relative Strength Index was at 23, indicating that the stock may me oversold, according to Bloomberg data.

Shares of Titan fell as much as 6.1 percent, the most since July 9, to Rs 1,182.55.

The company said that the sales growth of its mainstay jewellery business remained muted in the quarter ended September as rising gold prices deterred buyers.

Jewellery sales fell sharply in July but rose 15 percent year-on-year between August and September, the Tata Group company, which owns the Tanishq brand, informed the exchanges. Retail sales, therefore, rose 7 percent for the quarter ended September, it said.

Trading volume was more than nine times its 220-day average, according to Bloomberg data. O the shares traded, 35 percent were at the ask price and 38 percent were at the bid.

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 37,561 and 11,125 as of 9:20 a.m. The broader markets represented by the NSE Nifty 500 Index was flat.

The market breadth was tilted in favour of buyers. About 751 shares advanced and 537 stocks declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty FMCG Index’s 0.45 percent gain. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral loser, down 0.21 percent.

Futures

• Nifty October futures closed at 11162, premium of 35.6 points versus 40.4 points.
• Nifty October futures up 0.3 percent, adds 44,600 shares in open interest
• Nifty Bank futures closed at 27,871.5, premium of 104 points versus 121.9 points
• Nifty Bank October futures open interest down 12 percent, sheds 2 lakh shares in open interest.

Options

• Nifty PCR at 0.95 versus 0.97 (across all series).

Nifty Monthly Expiry: Oct. 10

• Max open interest on call side at 11,500 (23 lakh shares).
• Max open interest on put side at 11,000 (13.2 lakh shares).
• open interest addition seen at 11,200C (+10.9 lakh shares), 11,250C (4.9 lakh shares), 11,100C (+4.6 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 (27.4 lakh shares).

• Eicher motors to meet DCNA finance on Oct. 9.
• Mahindra Logistics to meet Axis MF and Motilal Oswal AMC on Oct. 9.
• Acrysil to meet investors on Oct. 9.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.26 percent to 71.21 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.7 percent to 37,804 during the pre-market trade and the NSE Nifty 50 rose 0.36 percent to 11,164.

• The pound weakened after Boris Johnson told German Chancellor Angela Merkel a Brexit deal is essentially impossible if the EU demands Northern Ireland stay in the bloc’s customs union.
• Oil extended declines to a two-month low on fading prospects for a resolution to the protracted U.S.-China trade dispute.

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Earnings To Watch

• Goa Carbon

• Aurobindo Pharma clarified that none of the observations that were issued by the U.S. FDA were related to data integrity and the drugmaker said it is confident of addressing them within the stipulated timeline.
• Tata Motors: Jaguar September sales were down 15.2 percent year-on-year to 16,235 units. Land Rover September sales rose 6.9 percent on a yearly basis to 40,597 units. Second quarter Jaguar Land Rover sales fell 0.7 percent year-on-year to 1.28 lakh units. And China sales continued to recover in the September quarter.
• Titan Company said sales growth of its mainstay jewellery business remained muted in the quarter ended September as rising gold prices deterred buyers. Jewellery sales fell sharply in July but rose 15 percent year-on-year between August and September, the Tata Group company, which owns the Tanishq brand, informed the exchanges. Retail sales, therefore, grew 7 percent for the quarter ended September, it said.
• Talwalkars Health defaults on payment of Rs 2.38 crore interest. Total amount of borrowing is Rs 463.15 crore and the lender to co. is Lakshmi Vilas Bank.
• PI Industries launched a new product under Herbicide segment to control pest of Wheat crop. New product will cater only to the domestic market.
• DCM said Board of Directors of the company to consider various options for restructuring of engineering business/ securing strategic/ financial partner on Oct. 21.
• TCS tied up with Pandora for digital transformation project.
• Gujarat Gas: CARE Ratings reaffirmed its credit rating on long and short term bank facilities worth Rs 2,000 crore at ‘AA’ with positive outlook.
• DHFL to consider June quarter results on Oct. 17.
• Mahindra Lifespace: Launched new residential project in Andheri East.
• NCL Industries: Cement production during September quarter fell 24 percent on a yearly basis for to 3,71,636 million tonne. Cement dispatches declined 25 percent year-on-year to 3,67,956 million tonnes during the period.
• Jammu & Kashmir Bank: The Reserve Bank of India appointed RK Chhibber as the Chairman and Managing Director of the Bank with effect from Oct. 10 for a period of six months. Chhibber is currently Interim Chairman and Managing Director.
• India Infrastructure Trust: Will distribute Rs 6.7 to unit holders. Record date fixed on Oct. 16.
• Prime Focus sold its VFX business division to subsidiary – DNEG Creative Services – for Rs 270 crore. The sale was done to consolidate the VFX business under one company.
• Minda Industries: The company is set to acquire 100 percent stake of Delvis Group which is engaged in automotive lighting design and engineering for €21 million (Rs 164 crore). Transaction is subject to appropriate regulatory approvals and is expected to complete in two months.
• Indiabulls Real Estate and Indiabulls Ventures to consider buyback of equity shares on Oct. 11.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.4 percent to 11,141.40 as of 8:30 a.m.

Asian stocks dropped on Wednesday after a slump on Wall Street spurred by escalating U.S.-China trade tensions, though declines were more modest than in the U.S.

Benchmark equity gauges in Shanghai, Tokyo and Hong Kong were down by about half the 1.6 percent drop in the S&P 500 Index overnight, continuing the pattern of outperformance seen last month. The U.S. futures edged higher.

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