Sensex Registers Longest Gaining Streak Since Budget

Sensex gained for the fourth day in a row— its longest rally since Finance Minister Nirmala Sitharaman’s maiden budget in July.

The benchmark rose 0.24 percent to close at 38,598.99 and the NSE Nifty 50 rose 0.31 percent to 11,464. The broader markets represented by the NSE Nifty 500 Index rose 0.30 percent.

“The setup is positive and it suggests that an up move could be in the offing in the Nifty Index,” said Chandan Taparia, Associate Vice President, Motilal Oswal Securities. “Market has the potential to move towards 11,550 levels till it holds 11,330-mark,” he said in an interview to BloombergQuint.

The market breadth, however, was tilted in favour of sellers. About 896 stocks declined and 874 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty IT Index’s 1.01 percent gain. On the flipside, the NSE Nifty PSU Index was the top sectoral loser, down 0.80 percent.

Shares of the state-run insurance companies were locked in the upper circuit of 20 percent.

• New India Assurance rose 20 percent, the most on record, to Rs 113.85 each.
• General Insurance Corporation advanced 20 percent to Rs 260.60 apiece.

Indian equity benchmarks traded marginally lower dragged down by losses in the metals pack.

The S&P BSE Sensex fell 0.05 percent to 38,484.50 and the NSE Nifty 50 traded flat at 11,430.30 as of 2:10 p.m. The broader markets represented by the NSE Nifty 500 Index rose 0.11 percent.

“The setup is positive and it suggests that an up move could be in the offing in the Nifty Index,” said Chandan Taparia, Associate Vice President, Motilal Oswal Securities. “Market has the potential to move towards 11,550 levels till it holds 11,330-mark,” he said in an interview to BloombergQuint.

The market breadth was tilted in favour of sellers. About 933 stocks declined and 831 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Index’s 0.60 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 1.47 percent.

Shares of the general insurance company declined 7.2 percent, the most in over a month, to Rs 1,175.10 each.

Around 2.23 crore shares or 4.9 percent equity changed hands in two bunched trades, according to Bloomberg data. Buyers and sellers were not known immediately.

The stock gained 55 percent so far this year compared to 9.5 percent gain in the Sensex.

Shares of the private lender declined 5.1 percent intraday to Rs 80.65 each.

The company’s net profit rose 57 percent year-on-year to Rs 417 crore, according to its exchange filing.

Q2 Results (Year on Year)

• Net Interest Income up 10 percent to Rs 1,124 crore.
• Gross NPA at 3.07 percent versus 2.99 percent (QoQ)
• Net NPA at 1.59 percent versus 1.49 percent (QoQ)
• Provisioning at Rs 252 crore versus Rs 192 crore (QoQ)

The stock trades at 9.5 times its estimated earnings per share for the coming year, Bloomberg data showed.

The iconic Bajaj Chetak is back after 13 years and this time it is electric.

Shares of the media company rose as much as 5.7 percent intraday to Rs 151.75 each.

The Gujarat-based company reported its September quarter earnings on Wednesday. Its net profit shot up 63.6 percent year-on-year to Rs 75.6 crore.

• Revenue down 8.7 percent at Rs 531.4 crore.
• Ebitda up 6.6 percent to Rs 98.4 crore.
• Margin at 18.5 percent versus 15.9 percent.
• Raw material as percentage of sales at 36 percent versus 40 percent.

The stock traded 30 percent below the Bloomberg one-year target price.

Shares of the housing finance company declined as much as 6.9 percent to Rs 176.10 each—its lowest level since September 2013.

The Mumbai-based firm, on Monday, said its board intends to go for a buyback of shares and will take a final decision in this regard after receiving concurrence from market regulator Securities and Exchange Board of India.

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

Shares of the Shapoorji Pallonji Group company snapped its two-day fall and rose 2.1 percent intraday to Rs 611.85 each.

Sterling & Wilson Solar signed a new engineering, construction and procurement contract for building a solar farm in Australia for 220.83 million Australian dollars, according to an exchange notification.

The stock has advanced 23 percent since its listing in August.

Nifty’s 11,500 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, declined 5.15 percent to Rs 26.70. Over 13.53 lakh shares were added to the open interest which stood at over 29.68 lakh shares.

Indian equity benchmarks held their early gains as industrial stocks such as Grasim Industries and Ultratech Cement were among the top gainers.

The S&P BSE Sensex rose 0.23 percent to 38,594.03 and the NSE Nifty 50 rose 0.28 percent to 11,460.30 as of 12 p.m. The broader markets represented by the NSE Nifty 500 Index rose 0.33 percent.

“The setup is positive and it suggests that an up move could be in the offing in the Nifty Index,” said Chandan Taparia, Associate Vice President, Motilal Oswal Securities. “Market has the potential to move towards 11,550 levels till it holds 11,330-mark,” he said in an interview to BloombergQuint.

The market breadth was tilted in favour of buyers. About 947 stocks advanced and 695 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 1.47 percent gain. On the flipside, the NSE Nifty Auto Index was the only sectoral loser, down 0.14 percent.

Shares of the private lender were locked in the lower circuit of 5 percent for the twelfth straight session. The stock traded at Rs 20.95 each.

Last month, the bank was placed under Prompt Corrective Action Framework while its proposed merger with Indiabulls Housing was rejected by the Reserve Bank of India last week.

The shares fell 74 percent in the past 12 months compared with a 9.8 percent gain in the Sensex.

Shares of the Bajaj Group company rose as much as 17.1 percent to Rs 238.50 each.

The firm’s slumped the most in nearly three years on Tuesday after its promoter sold 22 percent stake in a single large trade.

Bajaj Resources Ltd., the promoter of the maker of Almond Drops hair oil, sold 3.22 crore shares or about 21.9 percent stake, according to data from stock exchanges. This brings down Bajaj Resources’ holding in the company to 38 percent.

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

Shares of the software exporter rose 2.6 percent intraday to Rs 249.90 each.

The Bengaluru-based firm announced its second quarter earnings on Tuesday. Net profit rose 6.6 percent sequentially to Rs 2,561 crore. That compares with the Rs 2,280-crore consensus estimate of analysts tracked by Bloomberg.

• Revenue rose 2.3 percent to Rs 15,130 crore.
• EBIT rose 6.6 percent to Rs 2,613 crore.
• Margin stood at 17.3 percent versus 16.6 percent.
• IT services revenues rose 0.5 percent to $2,049 million.
• IT services Q3FY20 guidance $2,065 million to $2,106 million.
• Translates to 0.8 percent to 2.8 percent QoQ growth.

The trading volume was around 18 times the 20-day average for this time of the day, Bloomberg data showed.

Indian equity benchmarks opened higher driven by gains in Wipro and industrial stocks.

The S&P BSE Sensex rose 0.27 percent to 38,608.23 and the NSE Nifty 50 rose 0.29 percent to 11,468.30. The broader markets represented by the NSE Nifty 500 Index rose 0.32 percent.

The market breadth, however, was tilted in favour of sellers. About 946 stocks declined and 879 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Realty Index’s 0.71 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.12 percent.

Futures

• Nifty October futures closed at 11439.4, premium of 11 points.
• Nifty October futures up 2.3 percent, adds 3.2 lakh shares in open interest.
• Nifty Bank futures closed at 28,618.6, premium of 63.6 points.
• Nifty Bank October futures open interest down 1 percent, sheds 11,000 shares in open interest.

Options

• Nifty PCR at 1.31 versus 1.17 (across all series).

Nifty Weekly Expiry: Oct. 17

• Max open interest on call side at 11,500 (16.1 lakh shares).
• Max open interest on put side at 11,300 (23.4 lakh shares).
• Open interest addition seen at 11,400P (+10.8 lakh shares), 11,300P (9.3 lakh shares).

Nifty Monthly Expiry: Oct. 31

• Max open interest on call side at 12,000 (24 lakh shares).
• Max open interest on put side at 11,000 (30.8 lakh shares).

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.10 percent to 70.80 against the greenback.

Rupee could fall on Wednesday as currencies across the region come under the pressure due to U.S.-China tensions. Traders will also weigh Tuesday’s data that showed a narrower trade deficit.

• Bajaj Consumer Care promoter sold 3.22 crore shares or about 21.9 percent stake, according to data from stock exchanges. This brings down its holding in the company to 38 percent. Interestingly, nearly 38 percent of the company’s equity is pledged with Axis Finance Ltd.
• Entertainment Network: Bahrain-based Adline Media has terminated brand and content license agreement signed in March 2018 with the company. Adline Media has expressed their inability to continue with the aforesaid agreement due to insufficient advertising market to profitably supporting the operating costs of the radio station.
• MCX accepted the resignation of its Chief Financial Officer Sanjay Wadhwa.
• ACC said it is executing projects that will add new capacity in the markets of Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand and West Bengal. They also maintained a positive outlook for demand in the coming months.
• SBI said that the impact of nationwide strike on Oct. 22 on the bank will be minimal.
• Sterling & Wilson signed contract for a new engineering, construction and procurement for Solar Farm In Australia for 220.83 million Australian dollar.
• NBCC has secured total business of Rs 852.17 crore for the month of September.
• ONGC’s arm ONGC Videsh has recorded discoveries of oil in Colombia and Brazil.
• International Paper APPM: West Coast Paper Mills acquired 17.2 percent stake in the company on Oct. 11, through an open offer pursuant to the letter of offer dated Aug. 30.
• Dalmia Bharat clarified that its arm Calcom has not committed any default in its obligations towards GuarantCo. GuarantCo had originally executed guarantee(s) in favour of certain Indian banks with respect to loan facilities availed by Calcom under the management of erstwhile promoters. Upon default of the erstwhile promoters in December 2011 and January 2012, the Indian banks had invoked the guarantee(s) as beneficiaries and GuarantCo in turn paid the money to the said banks. GuarantCo is now demanding that Calcom additionally pay GuarantCo for the difference on account of the exchange rate fluctuation which has occurred during the tenure of loan repayment and this company stated that this additional amount of demand is not within Reserve Bank of India regulations.
• United Bank of India to seek shareholder nod on Nov. 7, regarding the issuance of preference shares worth Rs 1,666 crore to the Government of India.
• Sheela Foam has incorporated its arm in U.S. named SleepX US Inc.
• Emami: Blackstone, KKR and TPG Capital join race for Emami Cement. (BN)
• Future Enterprises to consider selling assets to Future Retail on Nov 8.
• ARSS Infra Projects received work order of Rs 60.6 crore for construction of roads in Odisha by Rail Vikas Nigam.

• Mindtree
• Federal Bank
• Aditya Birla Money
• DB Corp
• Eimco Elecon
• Hathway Cable & Datacom
• Kokuyo Camlin

Wipro (Q2, Consolidated QoQ)

• Revenue rose 2.3 percent to Rs 15,130 crore.
• Net profit rose 6.6 percent to Rs 2,561 crore.
• EBIT rose 6.6 percent to Rs 2,613 crore.
• Margin stood at 17.3 percent versus 16.6 percent.
• IT services revenues rose 0.5 percent to $2,049 million.
• IT services Q3FY20 guidance $2,065 million to $2,106 million.
• Translates to 0.8 percent to 2.8 percent QoQ growth.

ACC (Q3CY19, Standalone YoY)

• Revenue rose 2.7 percent to Rs 3,527.6 crore.
• Net profit rose 45.9 percent to Rs 300 crore.
• Ebitda rose 25.7 percent to Rs 556.4 crore.
• Margin stood at 15.7 percent versus 12.9 percent.

SBI Life Insurance (Q2, YoY)

• Gross premium rose 33 percent to Rs 10,243.4 crore.
• Net profit rose 21 percent to Rs 348.91 crore.
• Thirteen month persistency at 83.13 percent versus 80.03 percent.

MCX (Q2, Consolidated YoY)

• Revenue rose 40.9 percent to Rs 100.2 crore.
• Net profit rose 2 times to Rs 71.8 crore.
• Ebitda rose 2.1 times to Rs 47.3 crore.
• Margin stood at 47.2 percent versus 32.2 percent.

Karnataka Bank (Q2, YoY)

• Net interest income rose 6.6 percent to Rs 498.7 crore.
• Net profit fell 5.4 percent to Rs 105.9 crore.
• Provisions stood at Rs 262.4 crore versus Rs 193.2 crore. (Rs 201.1 crore QoQ)
• GNPA stood at 4.78 percent versus 4.55 percent (QoQ).
• NNPA was at 3.48 percent versus 3.33 percent (QoQ).

Alicon Castalloy (Q2, Consolidated YoY)

• Revenue fell 13.1 percent to Rs 266.2 crore.
• Net profit was down 31.9 percent to Rs 9.4 crore.
• Ebitda fell 7.7 percent to Rs 34.7 crore.
• Margin stood at 13 percent versus 12.3 percent.

Reliance Industrial Infrastructure (Q2, Consolidated YoY)

• Revenue declined 6.1 percent to Rs 20 crore.
• Net profit rose 4.2 percent to Rs 2.5 crore.
• Ebitda was down 27.6 percent to Rs 2.1 crore .
• Margin stood at 10.5 percent versus 13.6 percent.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.35 percent to 11,475 as of 8:30 a.m.

Asian stocks followed their U.S. peers higher, though gains were pared by U.S.-China tensions over Hong Kong that also sent the yen edging up.

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