Sensex gains 579 points, Nifty above 10,550 indices up 5% for week

02 Nov 2018

Markets at close: Sensex ended the day at 35,011, surging 579 points or 1.68 percent, whereas the Nifty jumped 172 points to close at 10,553, 1.66 percent higher than the previous day. Both benchmark indices closed the week 5 percent higher.

Auto, Banks and FMCG ended the day higher. Nifty Auto surged 4.15 percent, Nifty Bank gained 4.49 percent and Nifty FMCG jumped 1.7 percent. The corresponding sectoral indices on the BSE gained 4.05 percent, 1.42 percent and 1.52 percent, respectively.

Sectoral indices for IT, Pharma and PSU banks closed the day in the red.

The biggest gainer on Sensex were Maruti Suzuki which gained 6.4 percent, Tata Motors which spiked 6.3 percent and Vedanta which jumped 6 percent. IT majors Wipro, TCS and Infosys were biggest losers.

The biggest gainers on Nifty were BPCL (6.2 percent), Maruti Suzuki (6.3 percent), Vedanta (6.2%), Tata Motors (6 percent) and IndusInd Bank (5.3 percent). Among the biggest losers on the index were Tech Mahindra, Wipro and Dr Reddy’s Lab.

The 'Muhurat' trading, which is conducted on the auspicious occasion of Diwali, will be held between 1700 hours and 1830 hours on November 7, the stock exchanges said.

Bata India net profit grows 30%

Bata India reported a net profit at 55.6 crore in the September quarter, registering year-on-year growth of 30 percent. The revenue for the footwear company grew 14.7 percent in the second quarter at 587 crore. EBITDA for the company grew 35.5 percent at 87.3 crore. EBITDA margin was at 13 percent against 11 percent for the corresponding quarter last year.

Nov 02, 03:08 PM (IST)

India VIX is down by 1.07 points, or 5.6 percent and currently trading at 18.12.

Corporate Scorecard

Neuland Labs has reported a rise of 83 percent in net profit at Rs 4.4 crore from Rs 2.4 crore year on year. The revenues have risen 30 percent at Rs 169 crore against Rs 130 crore last year.

Whirlpool has posted 7 percent year on year rise in net profit at Rs 78.5 crore. The revenue has risen 2 percent at Rs 1,181.5 crore.

Godrej Consumer reported net profit growth of 60 percent at Rs 578 crore against Rs 362 crore in the previous year. The revenue has risen 6 percent at Rs 2,659 crore against Rs 2,507 crore last year.

Petronet LNG’s Q2 net profit fell 4 percent at Rs 563 crore against Rs 587 crore during the previous quarter. The revenue rose 17 percent at Rs 10,745 crore.

Market Update: Equity benchmarks are seeing a strong day of trade so far, with the Sensex rising over 700 points. The Nifty is nearing 10,600-mark.

The Sensex is up 700.76 points or 2.04% at 35132.73, and the Nifty up 212.70 points or 2.05% at 10593.20. The market breadth is positive as 1,713 shares advanced, against a decline of 744 shares, while 118 shares were unchanged.

Vedanta, Tata Motors, and BPCL are the top gainers, while Wipro, TCS, and Tech Mahindra have lost the most.

PNB's Loss Widens in Q2

Punjab National Bank has posted a loss of Rs 4,532.4 crore crore for the quarter ended September 2018 as provisions increased four-fold compared to year-ago, but asset quality improved sequentially.

The bank had reported profit at Rs 560.6 crore in Q2FY18 and the loss widended sharply from Rs 940 crore in June quarter.

The loss was much higher compared to analyst expectations. Nomura and Kotak Securities had expected the same at around Rs 2,400 crore for the quarter.

The stock was one of the biggest losers among banks, falling 57 percent year-to-date and 21 percent during July-September quarter on asset quality concerns.

Earnings Update:

Ingersoll Rand's second quarter net profit grew by 2 percent to Rs 22.5 crore versus Rs 22 crore in same period last year despite strong operating income.

Revenue during the quarter increased 10.1 percent year-on-year to Rs 177.4 crore.

EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 80.4 percent YoY to Rs 31.5 crore and margin expanded 690 bps to 17.7 percent in Q2.

US-China Trade Deal likely?

US President Donald Trump wants to reach an agreement with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina later this month, Bloomberg reported today, citing four people familiar with the matter.

Trump has asked key US officials to begin drafting potential terms, Bloomberg said, adding that the push for a possible deal with China was prompted by his telephone call with Chinese President Xi Jinping on Thursday.

Trump and Xi both expressed optimism about resolving their bitter trade disputes ahead of a high-stakes meeting planned for the two leaders at the end of November in Argentina. Source: Reuters.

Nomura's Q2 Expectations for Punjab National Bank

1) PNB will continue to get impacted from amortised expenses on NCLT, MTM loss, gratuity and Nirav Modi/Gitanjali Gems related provisioning.

2) We expect PPOP/assets to remain weak at 1.3% levels but higher provisions and slippages of Rs 8,500 crore will lead to Rs 2,400 crore of loss in Q219F.

3) Any details on stress book and capital raising plans will be the key thing to watch out for.

Vikas Ecotech Zooms 11% After NCLT Approval for Demerger

Vikas Ecotech (VEL) has received approval from the National Company Law Tribunal (NCLT) for its proposed scheme of arrangement for the demerger of its high-volume ‘Trading and Recycled Compounds Division’ and its subsequent amalgamation with Vikas Multicorp (VML).

As a result of this scheme, the resultant company, Vikas Multicorp will be listed on the stock exchanges and the shareholders of Vikas Ecotech will receive one equity share of VML for every one equity share held in VEL.

The scheme of arrangement is effective from April 1, 2017 and will come into effect on filing of certified copy of NCLT order with the Registrar of Companies NCT of Delhi and Haryana.

As the NCLT approval has come, the company is taking necessary steps to implement the same and for listing of VML shares with BSE & NSE and will endeavour to list VML shares on the stock exchanges at the earliest, the company said.

Rupee Update:

The rupee appreciated 57 paise to 72.88 against the dollar at the interbank foreign exchange after crude prices fell to seven-month lows in the global market amid fresh foreign fund inflows.

The rise was also supported by dollar-selling by exporters and banks and the US unit's weakness against some currencies overseas, traders said.

They said a higher opening in the domestic equity market too supported the rupee.

The rupee had gained 50 paise to close at 73.45 against the US dollar Thursday, posting its biggest single-session spurt in three weeks on increased selling of the greenback by exporters, softening crude oil prices and upbeat economic numbers.

Foreign institutional investors (FIIs), which had been selling on Indian bourses, made fresh purchases worth Rs 348.75 crore Thursday, as per provisional data. Source: PTI

Hindalco In Action After Novelis Earnings

Novelis said profit in quarter ended September 2018 grew by 56 percent to $116 million and revenue increased 12 percent to $3.1 billion compared to year-ago.

Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 18 percent to $355 million in Q2 YoY.

Shipments increased 1 percent to 805 kt compared to same quarter last year, the company said.

Marico surges 6%: Shares of Marico have surged 6 percent as investors are reacting positively to its earnings announcement for September quarter.

Brokerage houses have termed the quarter to be in line with estimates, but expect a better show ahead due to reducing input costs.

The FMCG major’s second quarter net profit grew by 18 percent year-on-year to Rs 218.3 crore despite weak operating margin due to higher copra prices.

Crude Oil Update

Oil prices dipped as record crude output by the world's top-three producers offset supply concerns from the start of US sanctions next week against Iran's petroleum exports.

Front-month Brent crude futures, the international benchmark for oil prices, were at $72.73 per barrel, down 0.22 percent from their last close.

US West Texas Intermediate (WTI) crude futures were down 0.27 percent at $63.52 a barrel.

The 15-member producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) boosted oil production in October to the highest since 2016 at 33.31 million barrels per day (bpd), a Reuters survey found this week. Source: Reuters.

Market Update:

Benchmark indices extended rally with the Sensex climbing over 500 points on the back of rupee appreciation and sharp recovery in oil prices after positive US-China talks over trade.

The 30-share BSE Sensex rallied 529.53 points or 1.54 percent to 34,961.50 and the 50-share NSE Nifty gained 166.10 points or 1.60 percent at 10,546.60.

About 1,523 shares advanced against 461 declining shares on the BSE.

Nomura Expectations for Axis Bank

With just around Rs 10,000 crore of stress book left to be recognised, we expect slippages to normalise with some normalisation in retail/agri slippages. We expect Rs 3,800 crore of slippages in Q219F and expect provision cover to increase by 200bps to 56-57 percent.

2) Margins should start trending up as MCLR rate hike-related benefit starts flowing through. We expect NIMs ex of one off interest reversal benefit in Q119F to improve by 10bps versus Q418.

3) Key thing to watch out for in the quarter will be the liquidity situation and the commentary on the margin/growth outlook.

Market Update: Equity benchmarks have extended their gains, with the Sensex soaring over 350 points, while the Nifty is around 10,500.

At 09:32 hrs IST, the Sensex is up 388.63 points or 1.13% at 34820.60, and the Nifty up 119.40 points or 1.15% at 10499.90. The market breadth is positive as 1,194 shares advanced, against a decline of 253 shares, while 38 shares were unchanged.

HCC surges 6%: Shares of Hindustan Construction Company rose 6 percent as investors cheered its results for September quarter.

The company posted a loss of Rs 1,525.23 crore for the July-September quarter, hit by exceptional write offs related to its group firm Lavasa Corporation which is under insolvency proceedings.

The company had posted a profit of Rs 11.60 crore during the same quarter a year ago, the company said in BSE filing.

Its total income fell to Rs 994.40 crore in July-September 2018-19 from Rs 1,031.93 crore in July-September of 2017-18 fiscal.

The company provided for an exceptional loss of Rs 2,011.13 crore related to write offs of its investment in group firms HCC Real Estate Limited (HREL) and Lavasa Corporation Ltd (LCL), the filing said. HREL held 68.7 percent stake in LCL.

Market opens: It’s a gap-up opening on indices, with the Nifty surging past 10,450, while the Sensex is higher by over 260 points.

The Sensex is up 260.74 points or 0.76% at 34692.71, while the Nifty is higher by 83.60 points or 0.81% at 10464.10. The market breadth is positive as 438 shares advanced, against a decline of 83 shares, while 17 shares were unchanged.

Among sectors, banks, automobiles, energy, infra, metals and pharmaceuticals are in the green, while technology names are trading in the red. The Nifty Midcap index is higher by a percent.

Market at pre-open: Equity benchmarks have opened higher in pre-opening, with the Nifty near 10,500.

At 09:02 hrs IST, the Sensex is up 261.35 points or 0.76% at 34693.32, and the Nifty is up 116.70 points or 1.12% at 10497.20.

Falling crude oil prices is likely to keep oil marketing companies in focus. The rupee has opened higher by 35 paise at 73.10 per US dollar.

Asian markets trade higher: Asian equity markets rose on Friday as China and the United States expressed optimism about resolving their bruising trade war, though a warning from tech giant Apple Inc on holiday sales amid emerging market weakness could weigh on technology shares.

US markets close higher: US stocks rose for a third straight session on Thursday as President Donald Trump said trade talks with China were "moving along nicely," reviving hopes that the two countries can resolve their trade dispute.