Infosys Helps Sensex, Nifty Rebound Ahead Of Q2 Earnings

Indian equity indices ended higher, led by the gain in Bengaluru-based software developer Infosys ahead of its results announcement.

The S&P BSE Sensex rose 0.65 percent to end at 38,127 and the NSE Nifty 50 rose 0.63 percent to 11,305.05 to close at 11,305.05. The broader market represented by the NSE Nifty 500 Index rose 0.53 percent.

The market breadth was tilted in favour of sellers. About 902 stocks declined and 864 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Metal Index’s 2.27 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.34 percent.

Indiabulls Ventures

• Stock rose as much as 9.3 percent to Rs 109.
• Board Approved Buyback of 6.7 crore shares worth Rs 1,000 crore.
• Buyback size represents 12.6 percent of the total paid up capital.

Biocon

• Stock rose as much as 4.3 percent to Rs 250.40.
• Unit entered into strategic licensing agreement with Evotec Group for an early-stage, pre-clinical bio similar asset.

Aban Offshore

• Stock rose as much as 5 percent to Rs 26.30.
• Received award for deployment of rig from Oil & Natural Gas Corporation for a period of three years.
• Deployment is expected to commence in the second quarter of calendar year 2020.

Tata Global Beverages

• Stock rose as much as 2.7 percent to Rs 273.90.
• Fresh longs seen with high open interest of 13 percent.

About 20 lakh shares of ITC changed hands after a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Indian equity indices are headed for a volatile close.

The S&P BSE Sensex rose 0.34 percent to 38,017 as of 3 p.m. and the NSE Nifty 50 rose 0.42 percent to 11,286. The broader markets represented by the NSE Nifty 500 Index rose 0.4 percent.

Shares of Bombay Burmah rose as much as 6.4 percent, the most since Sept. 23, to 1,137.

The stock declined 14.7 percent so far this year and fell 10.9 percent in the past 12 months. Of the shares traded, 51 percent were at the ask price and 35 percent were at the bid.

Shares of Dewan Housing Finance Corporation extended declines for the fifth consecutive trading session. The stock hit a lower circuit of 10 percent at Rs 21.15.

Of the shares traded, 72 percent were at the ask price and 21 percent were at the bid, according to Bloomberg data. The Relative Strength Index was below 30, indicating that the stock may be oversold. The scrip has declined 93 percent in the past 12 months compared to a 12 percent gain in the Sensex.

Shares of Reliance Capital extended declines for the fourth consecutive trading session and fell as much as 14.3 percent to Rs 17.10.

The stock has declined 20 percent in the last five days and slumped 51 percent in the past 30 days. Of the shares traded, 33 percent were at the ask price and 63 percent were at the bid, according to Bloomberg data.

The stock was the worst performer on NSE Nifty 500 Index.

Bandhan Bank

• Stock hit upper circuit of 20 percent at Rs 608.30.
• Trading volume was 18 times its 20-day average.

Religare Enterprises

• Stock fell as much as 4.9 percent to Rs 46.30.
• Trading volume was more than 13 times its 20-day average.

Gruh Finance

• Stock hit upper circuit of 20 percent at Rs 327.40.
• Trading volume was almost 16 times its 20-day average.

Rail Vikas Nigam

• Stock rose as much as 11.6 percent to Rs 25.60.
• Trading volume was almost eight times its 20-day average.

Indian equity benchmarks regained momentum in the afternoon trade.

The S&P BSE Sensex rose 0.72 percent to 38,156.21 as of 2:15 p.m. and the NSE Nifty 50 rose 0.72 percent to 11,316. The broader markets represented by the NSE Nifty 500 Index rose 0.65 percent.

The market breadth was tilted in favour of buyers. About 870 stocks declined and 855 shares advanced on National Stock Exchange.

Indian equity indices traded higher in the afternoon session even as oil marketing companies declined.

The S&P BSE Sensex rose 0.30 percent to 37,991.86 and the NSE Nifty 50 traded 0.31 percent higher at 11,266.95 as of 1:20 pm. The broader markets represented by the NSE Nifty 500 Index rose 0.26 percent.

Seven out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 1.21 percent advance. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral loser, down 0.16 percent.

Billionaire investor Rakesh Jhunjhunwala sells 49 lakh shares or 0.54 percent equity in Titan Ltd. during the September quarter period, according to an exchange filing. His current holding stands at 6.51 percent stake in the company, the filing said.

The Tata Group company, earlier this week, said sales growth of its mainstay jewellery business remained muted in the quarter ended September as rising gold prices deterred buyers.

Shares of Titan fell as much as 1.6 percent to Rs 1,215 apiece. The stock trades at 60 times its estimated earnings per share for the current year.

U.S. and European stock futures gained as high-level U.S.-China trade talks progressed into a second day and optimism grew that a truce can be achieved.

• Futures on the S&P 500 Index climbed 0.5 percent.
• The Stoxx Europe 600 Index increased 0.6 percent.
• The Shanghai Composite Index increased 0.9 percent.
• The MSCI Emerging Market Index increased 0.9 percent.

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Source: Bloomberg

Asia’s crude benchmark—Brent crude rose as much as 2.3 percent to $6046 a barrel.

A National Iranian Oil Company tanker caught fire after an explosion in the Red Sea near the Saudi Arabian port of Jeddah, the Islamic Republic News Agency reported, citing the company’s press office.

With inputs from Bloomberg

Indiabulls Ventures will buy back as much as Rs 500 crore worth of its shares, according to its statement on the exchanges.

The company will repurchase 50 lakh shares at Rs 100 apiece, according to its stock exchange notification today.

Shares of Infosys rose as much as 3.9 percent to Rs 813.50 ahead of results announcement.

Key Earnings Preview (Q2, QoQ)

• $ revenue seen 2.8 percent higher at $3217 million.
• Revenues seen 3.7 percent at Rs 22,608 crore.
• EBIT seen 8.7 percent higher at Rs 4,858 crore.
• EBIT margin seen at 21.5 percent versus 20.5 percent.
• Net profit seen 6.4 percent higher at Rs 4,045 crore.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Pharma Index’s 0.6 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 1.5 percent.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Pharma Index’s 0.6 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 1.5 percent.

• GMR Infra: About 40.7 lakh shares changed hands in a large trade.
• Yes Bank: About 25.9 lakh shares changed hands in a large trade.

Buyers and sellers were not known immediately.
Source: Bloomberg

Indian equity benchmarks erased gains.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 37,929 and 11,234 as of 11 a.m. The broader markets represented by the NSE Nifty 500 Index also traded flat.

Indiabulls Ventures will buy back as much as Rs 1,000 crore worth of its shares, according to its statement on the exchanges.

The company will repurchase 6.6 crore shares (or over 10 percent of equity) at Rs 150 apiece, according to its stock exchange notification today.

Nifty’s 11,400 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. 17, rose 12.04 percent to Rs 42.35. Over 5.96 lakh shares were added to the open interest which stood at over 13.9 lakh shares.

Shares of RBL Bank extended declines for the second consecutive trading session. The stock fell as much as 9.5 percent to Rs 261.05.

The stock declined 15 percent in two days. Trading volume was more tha two times its 20-day average, Bloomberg data showed.

Shares of Suzlon Energy rose as much as 14.9 percent to Rs 2.70.

The company has found a new suitor even as a rescue plan of Canada’s Brookfield Asset Management Inc. faltered, Mint reported quoting Founder and Chairman Tulsi Tanti.

The stock declined 52 percent in the past 12 months compared to a 13 percent advance in the Sensex.

Indian equity benchmarks extended opening gains.

The S&P BSE Sensex rose 0.97 percent to 38,246 as of 10:05 a.m. and the NSE Nifty 50 rose 0.85 percent to 11,332.60. The broader markets represented by the NSE Nifty 500 Index rose 0.7 percent.

Shares of Cipla extended declines for the second consecutive trading session and fell as much as 6.7 percent to Rs 393.70.

Trading volume was more than three times its average, Bloomberg data showed. Of the shares traded, 42 percent were at the ask price and 33 percent were at the bid.

Shares of Piramal Enterprises fluctuated between gains and losses to trade 0.4 percent higher at 1,376.

The stock had declined in the last three trading session, falling 14 percent during the period.

Of the shares traded, 45 percent were at the ask price and 35 percent were at the bid, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be overbought.

Shares of Tata Steel rose as much as 3.6 percent to Rs 341.95.

The company’s crude steel production increased 4.65 percent to 4.5 million tonne in second quarter ended Sept. 30 as against 4.3 MT in the corresponding quarter in the last financial year. The crude steel production also includes numbers from Tata Steel BSL and Tata Steel Long Products, without eliminating inter-company transactions.

The company’s overseas arm Tata Steel Europe reported liquid steel production of 2.46 million tonne during quarter as against 2.42 million tonne in the year-ago period.

With inputs from PTI

Shares of the country’s largest technology company fell as much as 3.9 percent, the most in over two weeks, to Rs 1,925.

Most analysts cut their target price for Tata Consultancy Services after its margin narrowed to the lowest in nine quarters.

The company reported a 1.1 percent month-on-month decline in net profit at Rs 8,042 crore in the July-September quarter, according to an exchange filing. Its operating margin narrowed 20 basis points to 24 percent—the lowest in nine quarters.

• Revenue rose 2.1 percent quarter-on-quarter to Rs 38,977 crore.
• Revenue in dollar terms rose 0.6 percent to $5,517 million.
• Operating profit, or EBIT, rose 1.5 percent to Rs 9,361 crore.

Shares of Bandhan Bank and Gruh Finance hit their upper circuit of 20 percent at Rs 608.30 and Rs 305.50 respectively.

The MSCI has announced addition of Bandhan bank to MSCI India largecap index, Motilal Oswal Financial Services said in a tweet.

The combined free float market capitalisation of Bandhan Bank will increase to above $2.5 billion after its merger with Gruh Finance, which made it eligible for largecap index.

Indian equity benchmarks opened higher, in line with Asian peers.

The S&P BSE Sensex rose 0.47 percent to 38,052 and the NSE Nifty 50 rose 0.46 percent to 11,285.90. The broader markets represented by the NSE Nifty 500 Index rose 0.5 percent.

The market breadth was tilted in favour of buyers. About 930 stocks advanced and 504 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Private Bank Index’s 1.2 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.82 percent.

Futures

• Nifty October futures closed at 11254.2, premium of 19.7 points versus 34.4.
• Nifty October futures up 0.1 percent, adds 14,000 shares in open interest.
• Nifty Bank futures closed at 28,106.6, premium of 93 points versus 88 points.
• Nifty Bank October futures open interest up 12 percent, adds 1.5 lakh shares in open interest.

Options

• Nifty PCR at 1.14 versus 1.19 (across all series).

Nifty Weekly Expiry: Oct. 17

• Max open interest on call side at 11,300 (9 lakh shares).
• Max open interest on put side at 10,500 (7.7 lakh shares).
• Open interest addition seen at 12000C (+7.6 lakh shares), 10,500P (6.3 lakh shares), 11,300C (+5.7 lakh shares).

Nifty Monthly Expiry: Oct. 31

• Max open interest on call side at 11,500 (24.8 lakh shares).
• Max open interest on put side at 11,000 (25.8 lakh shares).

• Welspun Corp to meet Emkay Global Financial Services on Oct. 11.

• Century Textiles & Industries ex-date for demerger
• Religare Enterprises, Shriram EPC, IIFL Securities to move into short term ASM Framework
• Pricol, 5Paisa Capital, Pioneer Distilleries to move out of short term ASM Framework
• Zee Media Corporation, IIFL Securities price band revised to 10 percent

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.36 percent to 70.81 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.49 percent to 38,078 during the pre-market trade and the NSE Nifty 50 rose 0.34 percent to 11,272.45.

• Tata Steel Ltd: Crude steel production increased 4.65 percent to 4.5 million tonne in second quarter ended Sept. 30 as against 4.3 MT in the corresponding quarter in the last financial year. The crude steel production also includes numbers from Tata Steel BSL and Tata Steel Long Products, without eliminating inter-company transactions. The company’s overseas arm Tata Steel Europe reported liquid steel production of 2.46 million tonne during quarter as against 2.42 million tonne in the year-ago period.
• Biocon: Unit entered into strategic licensing agreement with Evotec Group for an early-stage, pre-clinical bio similar asset.
• Eveready Industries: Completed the sale of its land in Chennai for Rs 100 crore to Alwarpet Properties.
• Astron Paper & Board Mill: Company has doubled its capacity to 1,74,600 million tonne per annum in the previous financial year. The company has invested on developing the Kraft paper segment which are then converted into cartons and supplied to companies.
• Fortis Healthcare: Police in New Delhi have arrested former billionaire Shivinder Singh and three others on charges of siphoning funds and fraudulently diverting nearly $337 million from a lender they controlled. The authorities are still searching for Shivinder’s elder brother Malvinder Singh, an official at the Economic Offences Wing said asking not to be identified citing rules.
• Muthoot Finance: Committee approved establishment of Global Medium-Term Note Program for $2 billion for the purpose of raising of funds through issuance of foreign currency bonds or rupee denominated bonds overseas on public/private basis in international markets subject to market conditions and regulatory approvals.
• Raymond: Company will hold extraordinary general meeting on Nov. 5 for approval to extend corporate guarantee to its associate company JK Investo Trade.
• NCC: India Ratings and Research has placed company’s long-term issuer rating of IND A on Rating Watch Negative from Stable.
• NHPC has completed the formalities for the takeover of Lanco Teesta Hydro Power.
• Arvind Smartspaces & HDFC Capital set up a Rs. 250 crore affordable and mid-income housing platform.
• Bank of India reduced Overnight MCLR by 15 basis points to 7.95 percent and one-year marginal cost of funds based lending rate by 5 basis points to 8.3 percent with effect from Oct. 10.
• Quess Corp: Shareholders approved amalgamation of the company’s four arms with self.
• Aban Offshore has received award for deployment of rig from Oil & Natural Gas Corporation for a period of three years. Deployment is expected to commence in the second quarter of calendar year 2020.
• Indian Overseas Bank reduced lending rates for retail and micro, small and medium enterprises segment by 25 basis points to 8 percent with effect from Nov. 11.
• Godrej Agrovet has in created its shareholding in Godrej Maxximilk from 62.97 percent to 74 percent.
• Vakrangee has announced its partnership with Aadhar Housing Finance Ltd. for offering distribution of Home Loan & Loan against Property through its Nextgen Vakrangee Kendras.

Nifty Earnings To Watch

• Infosys

Other Earnings To Watch

• ITI
• Bajaj Consumer Care
• Den Networks

Earnings Reaction To Watch

TCS (Q2, QoQ)

• Dollar revenue rose 0.6 percent to $5,517 million (BloombergQuint estimate at $5,587 million).
• Revenue rose 2.1 percent to Rs 38,977 crore.
• Net profit fell 1.1 percent to Rs 8,042 crore.
• EBIT up 1.5 percent to Rs 9,361 crore.
• EBIT Margin at 24 percent versus 24.2 percent.
• Operating margin was at a nine-quarter low.

GM Breweries (Q2, YoY)

• Revenue increased 8.6 percent to Rs 121.4 crore.
• Net profit was up 2.6 percent at Rs 19.9 crore.
• Ebitda was down 20.1 percent to Rs 24.3 crore.
• Margin at 20 percent versus 27.2 percent.
• Raw material costs as percent of sales stood at 20.5 percent versus 17.5 percent.

• Chinese President Xi Jinping to visit Chennai for the second informal summit with Prime Minister Narendra Modi
• India to release August industrial production data.
• Automakers group will announce industry-wide sales for September.

• Treasury yields dipped after rising to the highest in a week and the yuan steadied after its climb.
• The pound touched the highest level in two weeks against the greenback after U.K. and Irish leaders said that there may be a possible “pathway” for a Brexit deal.
• Crude rose after OPEC Secretary-General Mohammad Barkindo said members and allies including Russia will do “whatever it takes” to prevent another oil slump as the global economy weakens.

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The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.29 percent to 11,294 as of 8:25 a.m.

Stocks in Asia gained as high-level U.S.-China trade talks progressed into a second day and optimism grew that a truce can be achieved. Shares opened higher in Seoul, Tokyo and Sydney, while S&P 500 Futures advanced.

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