Sensex, Nifty Clock Best Post-Diwali Day In Eight Years

Indian equity indices clocked their best post-muhurat trading session since 2011.

The S&P BSE Sensex rose 1.8 percent or 582 points to 39,381 and the NSE Nifty 50 rose 1.37 percent to 11,786.85. The broader markets represented by the NSE Nifty 500 index rose 1.27 percent.

The 50-stock index closed at its highest levels since Budget.

The Nifty continue its consolidation amid positive bias for the week and remain above 11,500, ICICI Securities said.

“The Nifty remained volatile on the back of global cues and news on heavyweights like Infosys and Bharti Airtel,” the homegrown brokerage said in a note today.

Commenting on the volatility, the research firm said expects volatility to cool further after most companies have already announced their quarterly results. “The volatility declined towards 15% indicating consolidation with positive bias may continue,” it said.

The market breadth was tilted in faovur of buyers. About 1,055 stocks advanced and 732 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Auto Index’s 4.3 percent gain. On the flipside, the NSE Nifty Media index was the only sectoral loser, down 0.3 percent.

Asahi India Glass

• Stock rose as much as 3.3 percent to Rs 208.
• Trading volume was almost 40 times its 20-day average.

Motilal Oswal Financial Services

• Stock fell as much as 2.8 percent to Rs 607.15.
• Trading volume was almost nine times its 20-day average.

Mishra Dhatu Nigam

• Stock rose as much as 17.4 percent to Rs 157.40.
• Trading volume was almost 13 times its 20-day average.

Hindustan Aeronautics

• Stock rose as much as 8 percent to Rs 807.45.
• Trading volume was almost nine times its 20-day average.

Tata Investment Corp

• Stock rose as much as 5.5 percent to Rs 873.85.
• Trading volume was almost eight times its 20-day average.

NMDC

• Stock rose as much as 5 percent to Rs 112.75.
• Citi Upgraded the stock to ‘Buy’ from ‘Neutral’; hiked price target to Rs 125 from Rs 95.
• Mining industry changes in 2020 to benefit; mining lease expiry positive for NMDC.
• Expiry to be disruptive for ore supply in 2020-21.
• Hike net profit estimates by 8-30 percent for FY21/22 on resilient prices and slightly better volumes.

GVK Power & Infra

• Stock hit daily upper circuit of 5 percent at Rs 4.25.
• Three global firms have agreed to invest Rs 7,614 crore in the company’s airport business as the company looks to retire debt. (Read the full story here)

DCM Shriram Industries

• Stock rose as much as 2 percent to Rs 382.25.
• Strong Q2 Results, sugar segment revenue up 11 percent to Rs 251.5 crore.
• Revenue down 5.7 percent to Rs 391.7 crore
• Net profit up 9.1 percent to Rs 27.6 crore
• Ebitda up 46.8 percent to Rs 55.8 crore
• Margin at 14.2 percent versus 9.2 percent
• Industrial fibres and chemical segment remain saw degrowth between 21-31 percent.

Welspun India

• Stock rose as much as 10.6 percent to Rs 59.40.
• Gets final approval to resolve all pending legal claims in the U.S. concerning past marketing and labelling of company’s premium cotton home textile products.

Indian equity benchmarks are set to end near a four-month high.

The S&P BSE Sensex rose over 600 points or 1.6 percent to 39,886 as of 3 p.m. and the NSE Nifty 50 rose 1.5 percent to 11,802. The broader markets represented by the NSE Nifty 500 Index rose 1.3 percent.

Veteran investor Mark Mobius thinks that even with economic growth at a six-year low, India presents a better opportunity to invest than other emerging markets.

“I’m still very positive on India,” the founder of Mobius Capital Partners LLP told BloombergQuint in an interview. “Many countries would love to have the kind of growth India has. We are expecting 6 percent for the whole year. This is very good growth. You must remember you cannot have too rapid growth because that leads to excesses.”

Shares of Bharti Infratel extended declines for the fourth consecutive trading session. The stock fell as much as 10 percent to Rs 190.85, their lowest level in over five years. (Read more here)

That comes after a Rs 92,000-crore blow in adjusted gross revenue dispute will hurt growth of the tower arm of India’s second-biggest carrier.

The Supreme Court ruled that telecom operators will have to include revenue from non-core operations to calculate levies. The carriers will have to pay penalty and interest, the Supreme Court had said in its order last week.

The market breadth was tilted in favour of buyers. About 1,054 stocks advanced and 699 shares declined on National Stock Exchange.

Shares of Tata Motors extended rally to trade at day’s high. The stock rose as much as 16.7 percent to Rs 172.35. The stock had advanced 18 percent during the Muhurat trading session.

The company announced its quarterly results for the three months ended September on Friday.

Key Earnings highlights (Q2, YoY)

• Revenue down 9.1 percent to Rs 65,432 crore (Estimate: Rs 64,150 crore)
• Net loss at Rs 216.5 crore versus net loss at Rs 1,049 crore (Estimate: Net loss at Rs 1,635 crore)
• Ebitda up 15 percent to Rs 7,046 crore (Estimate: Rs 5,015 crore)
• Margin at 10.8 percent versus 8.5 percent (Estimate: 7.8 percent)
• JLR sales up 8 percent to GBP 6.08 billion
• JLR Ebitda margin at 13.8 percent and EBIT margin at 4.8 percent

Besides, the company’s board approved fund raising through debt and equity, the filing said, adding the company would make a preferential issue of equity shares and warrants worth Rs 6,500 crore to holding company Tata Sons. The group’s voting rights in Tata Motors would increase to 45.71 percent after the exercise. “The company will use proceeds from the preferential issue to promoters to retire domestic debt,” PB Balaji, group chief financial officer, told BloombergQuint.

U.S. and European stock futures traded little changed as investors await earnings releases and the Federal Reserve’s expected interest-rate cut.

• Japan’s Topix index rose 0.9 percent.
• Australia’s S&P/ASX 200 Index rose 0.1 percent.
• South Korea’s Kospi index was little changed.
• Shanghai Composite Index down 0.6 percent.
• Hong Kong’s Hang Seng Index fell 0.5 percent.
• S&P 500 futures were flat.
• Euro Stoxx 50 contracts fell 0.1 percent.

Get your daily fix of global markets here.
Source: Bloomberg

Shares of JSW Steel rose as much as 6.7 percent, the most since Sept. 20, to Rs 234. The stock extended gains for the second consecutive trading session.

The scrip traded at 14 times its estimated earnings per share for the coming year, according to Bloomberg data. The stock declined 31 percent in the past 12 months compared to a 17 percent advance in the Sensex.

Shares of the Mumbai-based lender extended gains for the third consecutive trading session. The stock rose as much as 9.4 percent to Rs 59.90.

Of the shares traded, 51 percent were at the ask price and 46 percent were at the bid, according to Bloomberg data. The stock advanced 23 percent in three days.

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

The S&P BSE Sensex rose 573 points or 1.45 percent to 39,819.60 and the NSE Nifty 50 rose 1.4 percent to 11,790. The broader markets represented by the NSE Nifty 500 Index rose 1.3 percent.

About 10 lakh shares of Indian Oil Corporation changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

The Nifty continue its consolidation amid positive bias for the week and remain above 11,500, ICICI Securities said.

“The Nifty remained volatile on the back of global cues and news on heavyweights like Infosys and Bharti Airtel,” the homegrown brokerage said in a note today.

Commenting on the volatility, the research firm said expects volatility to cool further after most companies have already announced their quarterly results. “ The volatility declined towards 15% indicating consolidation with positive bias may continue,” it said.

Shares of Marico extended declines for the second consecutive trading session. The stock fell as much as 7.4 percent to Rs 362.15 after the company’s profit and revenue during September missed estimates.

Key Earnings Highlights (Q2, YoY)

• Revenue flat at Rs 1,829 crore versus Rs 1,837 crore (Estimate: Rs 1,947 crore)
• Net profit up 16.5 percent to Rs 247 crore (Estimate: Rs 253 crore)
• Ebitda up 15.7 percent to Rs 353 crore (Estimate: Rs 358 crore)
• Margin at 19.3 percent versus 16.6 percent (Estimate: 18.3 percent)
• Raw material as percent of sales at 50.4 percent versus 56 percent
• Volume growth at 3 percent, India volume growth at 1 percent

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 3.58 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.58 percent.

Indian equity indices extended gains to trade at day’s high.

The S&P BSE Sensex rose nearly 400 points or 1 percent to 39,644 as of 11 a.m. and the NSE Nifty 50 rose 1 percent to 11,743. The broader markets represented by the NSE Nifty 500 Index rose 0.89 percent.

About 10.5 lakh shares of Infosys changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Nifty’s 11,700 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 Thursday, rose 111.03 percent to Rs 68.90. Over 2.16 lakh shares were removed from the open interest which stood at over 27.06 lakh shares.

Shares of Lakshmi Vilas Bank hit their lower circuit of 5 percent at Rs 14.05.

About 15 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Of the shares traded, 66 percent were at the ask price and 19 percent were at the bid, according to Bloomberg data.

Indian equity benchmarks traded higher, extending their opening gains.

The S&P BSE Sensex rose 0.7 percent to 39,536 as of 10:20 a.m. and the NSE Nifty 50 rose 0.71 percent to 11,710. The broader markets represented by the NSE Nifty 500 Index rose 0.65 percent.

Shares of Motherson Sumi extended gains for the fifth consecutive trading session. The stock rose as much as 8.1 percent, the most in over 10 days, to Rs 121.80.

The scrip advanced 17.5 percent in the past five days. Trading volume was more than five times its 20-day average, Bloomberg data showed.

Of the shares traded, 50 percent were at the ask price and 39 percent were at the bid, according to Bloomberg data.

Shares of GVK Power & Infrastructure hit their upper circuit of 5 percent at Rs 4.25.

Three global firms have agreed to invest Rs 7,614 crore in the company’s airport business as the company looks to retire debt. (Read the full story here)

The stock extended gains for the fifth consecutive trading session, their longest stretch of gains in over three months.

Shares of Bharti Airtel fell as much as 4 percent to Rs 358.10.

The telecom operator deferred the announcement of its second-quarter result until Nov. 14, saying it has sought more clarity on the recent Supreme Court ruling asking it to pay about Rs 22,000 crore in additional fees related to spectrum.

Trading volume was more than three times its 20-day average, according to Bloomberg data. Of the shares traded, 31 percent were at the ask price and 49 percent were at the bid.

Indian equity benchmarks opened marginally higher as gains in Reliance Industries Ltd. and Tata Consultancy Services Ltd. were offset by losses in Kotak Mahindra Bank Ltd. And Bharti Airtel Ltd.

The S&P BSE Sensex rose 0.19 percent to 39,322 and the NSE Nifty 50 rose 0.15 percent to 11,644. The broader markets represented by the NSE Nifty 500 Index rose 0.13 percent.

The market breadth was tilted in favour of buyers. About 791 stocks advanced and 731 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Media Index’s 0.62 percent fall. On the flipside, the NSE Nifty Auto Index was the top sectoral gainer, up 1.8 percent.

Futures

• Nifty October futures closed at 11,625, discount of 2 points versus premium of 25 points
• Nifty October futures up 0.2 percent, adds 23,000 shares in OI
• Nifty Bank October futures closed at 29,497.3, discount of 19 points versus premium of 35.9 points
• Nifty Bank October futures OI down 0.3 percent, sheds 3,200 shares in OI

Options

• Nifty PCR at 1.22 versus 1.21 (across all series)

Nifty Monthly Expiry: Oct. 31

• Max OI on call side at 12,000 (35.9 lakh shares)
• Max OI on put side at 11,000 (28.8 lakh shares)
• OI addition seen at 11,600P (+3 lakh shares), 11,850C (2 lakh shares), 11.650P (1.9 lakh shares)

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.23 percent to 70.72 against the greenback.

Indian equity benchmarks are set for a tepid start.

The S&P BSE Sensex rose 0.35 percent to 39,377 during the pre-market trade and the NSE Nifty 50 traded little changed at 11,630.

• GVK signed an agreement with ADIA, PSP Investments and NIIF for investment of Rs 7614 crore in its airports business. Proceeds will be used to pare debt and purchase additional shares in Mumbai International Airports Ltd.
• Mahindra & Mahindra delivered close to 13,500 vehicles on the day of Dhanteras. The number was substantially higher than deliveries last year.
• Shriram EPC disclosed pledge of 18.5 percent of promoter holding in SVL Ltd at periodic intervals in favour of Oriental Bank of Commerce. Shares pledged to secure credit facility availed by Shriram EPC Ltd.
• Aurobindo Pharma: Meeting of unsecured creditors to be held on Nov. 30; to consider and approve amalgamation of some of wholly owned subsidiaries of the company.
• APL Apollo Tubes allotted 5 lakh shares of Rs 10 each, pursuant to conversion of warrants into equity shares. The paid-up share capital stands increased to Rs 24.75 crore.
• Tata Power’s JV acquired gas-based power plant and diesel generating station at Kalinganagar from Tata Steel Ltd. The combined value of this transaction is Rs 920 crore.
• Ujjivan Financial Services clarifies that there has been no ‘red flags’ raised by the RBI in respect of its operations as mentioned in a media article.

Earnings To Watch

• DCM Shriram Industries
• Hindustan Zinc
• Petronet LNG
• SKF India
• Tata Metaliks
• Wonderla Holidays

• U.S. stocks climbed to a record as rising optimism for a trade deal with China combined with solid earnings and bets the Federal Reserve will cut rates.
• Oil fell for the first time in a week amid renewed signs of swelling crude inventories in the world’s biggest economy.

Get your daily fix of global markets here.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.1 percent to 11,678 as of 8:10 a.m.

Japanese shares led gains in Asia on Tuesday after U.S. equities climbed to a record, propelled by optimism for a trade deal, encouraging earnings and expectations for another Federal Reserve interest-rate cut.

While the Topix headed for a 2019 high in Tokyo, shares were little changed in Seoul and Sydney. Shanghai opened lower, and Hong Kong was little changed. U.S. futures were flat.

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