Sensex, Nifty end at record closing high; HUL, ITC drag

3:30 pm Market at Close: Benchmark indices began the week on a positive note, with the Nifty closing above 10,350-mark.

The Sensex closed up 108.94 points at 33266.16, while the Nifty ended higher by 40.70 points at 10363.70. The market breadth was positive as 1,696 shares advanced against a decline of 1,032 shares, while 148 shares were unchanged.

Tata Motors DVR, Lupin, Bharti Infratel and Yes Bank gained the most on both indices, while HUL, ITC and HCL Technologies were the top losers.

3:22 pm Earnings: FMCG major Marico reported an in-line net profit for September quarter at Rs 185.04 crore.

The company's revenue was higher by around 7 percent at Rs 1,536.3 crore against Rs 1.439.5 year on year.

At the operating level, the profits came in at Rs 259.1 crore, while the margin was reported at 16.9 percent.

The company also declared dividend at Rs.1.75 per equity share of Re. 1 each, being 175% on the paid-up equity share capital of Rs. 129.07 crore. The payment date for the said interim dividend shall be November 29, 2017.

3:11 pm Moody's on ONGC: ONGC's planned acquisition of a majority stake in refiner HPCL will create India's first integrated oil and gas company but will cause the state-owned firm's leverage to approach the upper limit of its rating, Moody's Investors Service said.

The government's selling its 51.11 percent stake in Hindustan Petroleum Corporation (HPCL) to Oil and Natural Gas Corporation (ONGC) will help it achieve the disinvestment target for the current fiscal.

3:08 pm Lupin Outlook: While addressing press conference, Lupin management said there was no change in the full year guidance.

They expect to see more pricing pressure in the US and are trying to maximize current portfolio in the US.

Apart from US, every market has grown and EMEA has grown due to South Africa, Lupin management said.

3:01 pm Real estate investment: Real estate investment in India's six major cities doubled to USD 2.87 billion in the year ended June 2017 as Mumbai attracted maximum capital and was ranked 81st globally, according to Cushman & Wakefield report.

"India received a total real estate investment of USD 2.87 billion in the six cities - Mumbai, Bengaluru, Pune, Delhi-NCR, Chennai and Hyderabad - which was an increase of 100 percent," the property consultant said.

These six cities were able to attract capital because of strong economic drivers, acceleration in reforms, high yields and rapidly modernising business base.

2:58 pm Earnings: Crop protection company UPL has reported consolidated net profit at Rs 238 crore for the quarter ended September 2017, a growth of 43.4 percent compared with Rs 166 crore in same quarter last fiscal. It was driven by strong operational performance.

Consolidated revenue for the quarter grew by 6.5 percent to Rs 3,770 crore on year-on-year basis.

EBITDA (earnings before interest, tax, depreciation and amortisation) increased 23.5 percent to Rs 677 crore and margin expanded by 250 basis points to 18 percent compared with year-ago quarter.

2:42 pm Bharat 22 may hit market soon: The 'Bharat 22' Exchange Traded
Fund (ETF) comprising 22 scrips of public sector units, banks and other entities is likely to hit the market on November 15, a senior finance ministry official said today.

An inter-ministerial panel headed by Finance Minister Arun Jaitley was set up to finalise the launch date and quantum of issuance of the ETF.

"Approvals are in place. It is likely to open for subscription on November 15," said the official. The ETF is part of the government's disinvestment
roadmap.

The amount is not decided yet, but could be upwards of Rs 8,000 crore, the official added.

The state-owned companies or PSUs that will form part of the new ETF are ONGC, IOC, SBI, BPCL, Coal India and Nalco.

It also includes government's strategic holding in Axis Bank, ITC and L&T held through SUUTI (Specified Undertaking of Unit Trust of India).

2:32 pm Buzzing: Lupin share price rallied nearly 8 percent after better-than-expected earnings for quarter ended September 2017.

Consolidated profit stood at Rs 455 crore (down 31.3 percent YoY) for the quarter on revenue of Rs 3,952 crore (down 7.9 percent YoY), against a CNBC-TV18 poll estimates of Rs 404 crore on revenue of Rs 3,984 crore, respectively.

Operating profit for the quarter came in at Rs 853 crore (down 17.2 percent YoY) and margin at 21.6 percent (contraction of 240 basis points YoY) against CNBC-TV18 poll estimates of Rs 791 crore and 19.9 percent, respectively.

2:26 pm Market Check: Equity benchmarks remained strong in afternoon as the 30-share BSE Sensex was up 155.20 points at 33,312.42, backed by banking & financials, oil & gas, auto and Bharti Group stocks.

The 50-share NSE Nifty rose 53.10 points to 10,376.10.

About 1,689 shares advanced against 870 declining shares on the BSE.

2:15 pm Stake Buy: Bharti Telecom, the promoter of Bharti Airtel, is going to buy 4.62 percent stake in country's largest telecom operator.

"Bharti Telecom will buy 18,47,10,183 equity shares or 4.62 percent of paid-up equity capital from Indian Continent Investment, on or after November 3, 2017," it said in its filing with the exchange.

The company confirmed that the acquisition price would not be higher by more than 25 percent of the price computed as per weighted average market price of the stock.

The weighted average market price of the stock for a period of 60 trading days is fixed at Rs 417.35 per share.

2:11 pm Green nod: State-owned Indian Oil Corp (IOC) has been given green nod for augmenting its Koyali-Sanganer pipeline (KSPL) capacity up to 6 million tonnes per annum (MTPA) from existing 4.6 MTPA at a cost of Rs 273.23 crore, a senior government official said today.

The company's proposal is to expand KSPL, which traverses from Koyali in Gujarat to Sanganer in Rajasthan, by augmenting the capacity of pumping stations located at Vadodara, Pali and other allied facilities.

2:00 pm Results: Drug firm Wockhardt today reported a consolidated net loss of Rs 3.33 crore for the quarter ended September 30, 2017.

The company had posted a net profit of Rs 17.02 crore for the corresponding period of previous fiscal, Wockhardt said in a filing to BSE.

Total income of the company stood at Rs 1,076.83 crore for the quarter under review. It was Rs 1,083.33 crore for the same period a year ago.

1:55 am USFDA approval: Drug firm Zydus Cadila today said it has received approval from the US health regulator to market Clobetasol Propionate ointment, used to treat a range of skin conditions, in the American market.

The company has received final approval from the US Food and Drug Administration (USFDA) to market its product, Zydus Cadila said in a statement.

The ointment will be manufactured at the company's Ahmedabad-based facility. The Zydus group has now more than 165 product approvals.

1:45 pm Earnings: Housing Development Finance Corporation (HDFC) has reported a standalone profit growth of 15 percent at Rs 2,101.12 crore for the quarter ended September 2017, compared with Rs 1,826.50 crore in same quarter last fiscal. It was ahead of CNBC-TV18 poll estimates of Rs 1,962 crore for the quarter.

Net interest income, the difference between interest earned and interest expended, grew by 13.7 percent year-on-year to Rs 2,612 crore in second quarter of FY18. It was largely in line with CNBC-TV18 poll estimates of Rs 2,640.2 crore.

Provisions and contingencies for the quarter remained flat at Rs 95 crore on year-on-year basis, but increased sequentially from Rs 85 crore.

Net interest margin during the quarter stood at 3.9 percent against 3.85 percent in corresponding quarter and 4 percent in previous quarter.

1:30 pm Market Check: Benchmark indices continued their steady moves as the Sensex gained over 150 points, while the Nifty hovered over 10,350-mark.

The Sensex was up 152.67 points at 33309.89, while the Nifty was up 50.20 points at 10373.20. The market breadth was positive as 1,703 shares advanced against a decline of 834 shares, and 122 shares were unchanged.

ONGC, Tata Motors, and Yes Bank were the top gainers on both indices, while ITC, Wipro and HCL Tech lost the most on both indices.

1:15 PM Result poll: FMCG major Marico is likely to post a PAT growth of 4.5 percent for the September quarter at Rs 189 crore against Rs 180.5 crore in the same period last year, a poll of analysts by CNBC-TV18 has revealed.

The company is expected to post consolidated revenue of over 10 percent at Rs 1,587 crore against Rs 1,442.8 crore during the same period last year.

On an operating level, the EBITDA is seen at Rs 263 crore against Rs 253.1 crore while operating margin is seen at 16.6 percent against 17.5 percent.

12:55 pm Buzzing Stock: Zydus Cadila has received final approval from the United States Food and Drug Administration (USFDA) to market Clobetasol Propionate Ointment USP, 0.05 percent.

At 12:42 hrs Cadila Healthcare was quoting at Rs 493.95, up Rs 2.55, or 0.52 percent.

The share touched its 52-week high Rs 558.00 and 52-week low Rs 342.00 on 12 June, 2017 and 26 December, 2016, respectively.

12:35 pm Result poll: UPL is expected to report net profit growth of 95 percent at Rs 387 crore for the quarter ended September 2017.

The company had reported net profit at Rs 199 crore in the quarter ended September 2016.

The company's revenue is seen up 12.4 percent at Rs 3978 crore against Rs 3540 crore, according to average of estimates of analysts polled by CNBC-TV18.

The operating profit (EBIDTA) seen up 16 percent at Rs 725.3 crore and margins at 18.2 percent.

12:15 pm Buzzing: Highlighting the decline in cigarette volumes, brokerage houses remain mixed on ITC's prospects going forward.

The company's September quarter results were in line with expectations. Cigarettes business was impacted by GST.

The profit met analysts' expectations at Rs 2,640 crore against Rs 2,500 crore posted during the same quarter last year.

The company's revenue was reported at Rs 10,314 crore, which also met expectations against Rs 9,661 crore during the same quarter last year-a rise of 6.8 percent. On an operating level, the EBITDA was reported at Rs 3,761.5 crore, which is a rise of 3.6 percent against Rs 3,630 crore.

Credit Suisse believes that the cigarette weakness was in line with expectations, but the worse could be over for the company going forward. It has a neutral stance on the stock with a target of Rs 310.

Kotak Securities, on the other hand attributed to decline in cigarettes business to GST and lower volumes. It also cut FY18-20 EPS estimates by 2-3 percent due to cut in cigarette business assumptions. The broking firm still maintains an add rating with a reduced target of Rs 310.

12:05 pm Earnings Estimates: Pharma major Lupin is expected to report a 39 percent degrowth year-on-year in consolidated profit at Rs 404 crore for quarter ended September 2017, dented by US business.

Profit in July-September quarter 2016 stood at Rs 662.2 crore.

Higher base in Q2FY17 and lower operational performance may weigh on bottomline.

Revenue during the quarter is seen falling 7.1 percent year-on-year to Rs 3,984 crore, according to average of estimates of analysts polled by CNBC-TV18.

EBITDA (earnings before interest, tax, depreciation and amortisation) may fall 23 percent year-on-year to Rs 791 croe and margin may contract 414 basis points to 19.86 percent in Q2.

11:53 am Market Check: Equity benchmarks remained higher in late morning deals, with the Sensex rising 158.49 points at 33,315.71 and the Nifty gaining 54.60 points at 10,377.60.

About two shares advanced for every share falling on the BSE.

Nifty Bank index gained more than 200 points, backed by PNB, Canara Bank, Yes Bank, ICICI Bank, Bank of Baroda and SBI that rallied 1-4 percent.

11:32 am Earnings Estimates: Tata Steel is expected to turn profitable in quarter ended September 2017, if the company does not account exceptional charge of 550 million pound related to British Steel Pension Scheme for separation from Tata Steel UK.

Net profit is likely to be at Rs 1,200 crore in September quarter against net loss of Rs 49 crore in year-ago quarter.

If it accounts that exceptional charge then the company could report a net loss for the quarter.

Revenue from operations during the quarter is seen rising 18.3 percent year-on-year to Rs 32,510 crore led by surge in volumes, according to average of estimates of analysts polled by CNBC-TV18.

Total volumes may grow 15.7 percent to 6.4 million tonnes.

Operating profit is expected to increase 75 percent year-on-year to Rs 5,200 crore and margin may expand 520 basis points to 16 percent in July-September quarter.

11:22 am Market Check: Equity benchmarks continued to trade higher in late morning deals, with the Nifty holding 10,350 level.

The 30-share BSE Sensex was up 102.65 points at 33,259.87 and the 50-share NSE Nifty rose 42 points to 10,365.

About 1,632 shares advanced against 737 declining shares on the BSE.

ICICI Bank, PNB, SBI, Yes Bank, Bank of Baroda and PI Industries were most active shares on exchanges.

11:07 am Earnings Estimates: Tower infrastructure services provider Bharti Infratel, a subsidiary of Bharti Airtel, is likely to report a 7 percent growth in profit at Rs 712 crore for quarter ended September 2017.

Profit in same quarter last fiscal stood at Rs 663 crore.

Analysts expect a good quarter for the company. Margin and revenue are expected to remain stable driven by tenancy growth due to Reliance Jio's aggressive capex.

Revenue during the quarter is seen rising 4 percent to Rs 3,654 crore compared with Rs 3,523 crore in corresponding quarter previous year, according to average of estimates of analysts polled by CNBC-TV18.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

10:55 am Order Win: Shares of Intellect Design Arena rose 4.4 percent intraday Monday as it has won the deal from BDO Nomura.

BDO Nomura, Philippines has selected OneMarkets from Intellect Design to provide omni-channel digital trading & equity research.

BDO Nomura is a premier investment house in Philippines and a joint venture between BDO Unibank (the leading bank in Philippines) and Nomura, Japan a leading financial services firm.

The company has marked its first deal in the securities trading segment in the country.

10:45 am Buzzing: ICICI Bank share price gained 1.5 percent after it reported results which missed most analyst estimates but stable asset quality stole the show for the private sector lender. Most brokerage firms maintained their rating but raised their respective target price up to Rs 400 which translates into an upside of 33 percent.

ICICI Bank witnessed improvement in asset quality during the second quarter of FY18 as it awaits the Reserve Bank of India's report on divergences to be reported in the third quarter.

In Q1 of FY18, the bank's net NPAs were the lowest in the last seven quarters at Rs 25,306 crore. The Q2 net NPAs stood even lower at Rs 24,130 crore.

Asset quality was far better than its rivals Axis Bank and Yes Bank. The gross non-performing assets (NPA) as a percentage of gross advances came in at 7.87 percent for the quarter, lower compared with 7.99 percent in previous quarter.

Net NPA as a percentage of net advances was also lower at 4.43 percent compared with 4.86 percent on the sequential basis.

10:35 am Earnings Estimates: Housing finance company HDFC is expected to report profit growth of 7.4 percent year-on-year at Rs 1,962 crore for the quarter ended September 2017.

Profit in July-September quarter 2016 stood at Rs 1,826.5 crore.

Net interest income during the quarter is seen rising 14.9 percent to Rs 2,640.2 crore compared with Rs 2,297.2 crore in same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.

Analysts feel if net interest margin comes above 3.75 percent, asset under management growth above 15 percent and gross non-performing assets below 1.2 percent then that will be taken positively by the Street.

10:22 am Nomura on Reliance Power: Nomura has upgraded Reliance Power to neutral from reduce but slashed price target to Rs 42 from Rs 45 per share, citing tepid near-term earnings outlook.

The research house feels the stock is fairly valued at current levels.

Nomura has reduced earnings per share estimates for the current and next financial year by 33 percent and 22 percent respectively, driven by revised estimates of net finance cost.

10:15 am Market Check: Equity benchmarks as well as broader markets extended gains in morning mixed Asian trade.

The 30-share BSE Sensex was up 150.48 points at 33,307.70 and the 50-share NSE Nifty rose 55.20 points to 10,378.20.

The BSE Midcap and Smallcap indices gained 1 percent each on strong market breadth. About three shares advanced for every share falling on the BSE.

Reliance Industries, SBI, ONGC, IOC, Tata Motors, ICICI Bank, BPCL and Maruti Suzuki rose 1-4 percent.

10:10 am Rupee Trade: The rupee was higher by 14 paise at 64.90 against the dollar after the European Central Bank (ECB) said it would soon taper off its monetary stimulus.

It got more lift from fresh selling of the US currency by exporters and banks amid stronger domestic equities.

The dollar's weakness against the euro and other currencies overseas following the ECB move triggered the rise in the local unit, traders said.

On Friday, the rupee had taken a big knock by plunging 23 paise to close at 65.05 a dollar.

10:02 am Earnings reaction: Shares of Ramkrishna Forgings touched 52-week high of Rs 824.95, surging as much as 17 percent in morning as it has turned profitable in the quarter ended September 2017 (Q2FY18).

The company has reported net profit of Rs 23.5 crore in Q2FY18 against loss of Rs 5 crore in the same quarter last fiscal. Its revenue increased 114 percent at Rs 333 crore.

The operating profit (EBIDTA) was up 130 percent at Rs 65 crore and margins was up 150 bps at 19.5 percent.

9:55 am Suggestion on GST rates: The Group of Ministers set up to make GST composition scheme more attractive suggested lowering tax rates for manufacturers and restaurants under the plan to 1 percent.

At present, while manufacturers pay GST at 2 percent, the rate for restaurants is 5 percent. Traders currently pay 1 percent.

The GoM headed by Assam Finance Minister Himanta Biswa Sarma has also suggested doing away with the tax rate distinction between AC and non-AC restaurants, those which are not covered under composition scheme, and tax them at 12 percent.

It also suggested that hotels which has room tariff of more than Rs 7,500 should attract 18 percent tax rate.

9:45 am Crude Oil Update: Oil markets were flat today, with Brent crude opening above USD 60 per barrel on expectations an OPEC-led production cut due to expire next March would be extended.

Brent crude oil futures, the international benchmark for oil prices, were at USD 60.41 per barrel, down 0.05% from their last settlement.

That's close to their highest level since July 2015 and up more than 36 percent since their 2017 lows last June.

US West Texas Intermediate (WTI) crude futures were up by 0.07 percent, at USD 53.94 a barrel.

9:35 am IPOs this week: It has been a busy October for markets as India Inc. raised over Rs 15,000 crore so far in the month bolstered by a sustained rally in the stock market that took the benchmark indices to record highs this past week.

The euphoria in the primary markets is unlikely to die down soon as long as equity markers are flushed with liquidity.

Three companies are scheduled to open their issue in the coming week starting from 30 October to 3 November which includes names like Mahindra Logistics, New India Assurance, and Khadim India.

9:25 am USFDA approval: Shares of Cadila Healthcare gained 1 percent in the early trade on the back of USFDA approval to market breast cancer drug.

Zydus Cadila has received final approval from the United States Food and Drug Administration (USFDA) to market Tamoxifen Citrate tablets USP in the strengths of 10 mg (base) and 20 mg (base).

The drug will be manufactured at the group's formulations manufacturing facility at SEZ in Ahmedabad.

The drug is indicated to treat breast cancer in women and men and to reduce the incidence of breast cancer in women at high risk for breast cancer.

9:20 am Buzzing: Share price of Alkem Laboratories added 1 percent in morning as no Form 483 issued for its USA facility.

United States Food and Drug Administration (USFDA) has not issued Form 483 for its St Louis, USA facility on the completion of inspection.

USFDA had conducted an inspection at the said facility from October 23 to October 27, 2017.

The stock gained 15 percent in the last one year.

9:15 am Market Check: Equity benchmarks started off the week at record high, with the Nifty crossing earlier intraday record high. Investors continued to focus on earnings.

The 30-share BSE Sensex was up 117.35 points at 33274.57 and the 50-share NSE Nifty rose 45.80 points to 10,368.80.

ICICI Bank was down over a percent post earnings on profit booking. The stock seems to have already priced in earnings and better-than-expected slippages.

ONGC, Bharti Airtel, Tech Mahindra, HCL Technologies, Maruti Suzuki, Vedanta and Reliance Industries were early gainers.

About 1,030 shares advanced against 239 declining shares on the BSE.

The broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained 0.7 percent each.

Punj Lloyd, United Spirits, Ramakrishna Forgings, Tata Metaliks, Linde India, Dalmia Bharat Sugar, Jet Airways, InterGlobe Aviation, SpiceJet, Shriram EPC, Shriram City and IDFC were up 1-7 percent.

SPARC and AU Small Finance were down 1-4 percent.