Sensex Posts Biggest Monthly Gain Of 2017

Fab 4 | Here's a look at the buzzing stocks in today's trade. @iYashUpadhyaya reports.https://t.co/aHqpPj8rVB pic.twitter.com/GNilAlxFJB

— BloombergQuint (@BloombergQuint) October 31, 2017

• Cyient has 1.11 crore shares (9.9 percent) equity change hands at Rs an average price of Rs 525 per share. Stock falls 3.2 percent to Rs 540.
• Bank of Baroda has 34.1 lakh shares change hands in block
• Bharti Infratel has 57 lakh shares change hands in a block
• Lanco Infratech has 11 lakh shares change hands in a block on the National Stock Exchange
• Network 18 has 90 lakh shares (0.9 percent equity) change hands at Rs 49.30 in multiple blocks on the NSE and BSE
• Bharat Electronics has 12 lakh shares change hands in a block

Buyers and sellers were not immediately

Source: Bloomberg

• The S&P BSE Sensex was headed for the best monthly gain of 2017, up over 6 percent in October
• Bharti Airtel, State Bank of India, Reliance Industries, Adani Ports and ONGC were among the top five Sensex stocks, up 12-28 percent so far, this month
• Broader markets also posted best monthly gains in October with the S&P BSE MidCap and S&P BSE SmallCap indices rising 7.5 and 9.2 percent respectively

Shares of the FMCG company rose over a percent despite missing Bloomberg consensus estimates in the September quarter.

• Net profit at Rs 362 crore versus estimate of Rs 370 crore
• Revenue at Rs 1,958 crore versus estimate of Rs 2,032 crore
• Total costs at Rs 1,590 crore

Shares of the Mumbai-based drugmaker rose 3.85 percent to Rs 1,283 after its revenue beat consensus Bloomberg estimates in July-September quarter.

• Net profit up rises marginally to Rs 132 crore
• Revenue at Rs 540 crore versus estimate of Rs 496 crore
• Total costs at Rs 370 crore

Shares of the Gurugram-based tractor maker declined 0.9 percent after its profit missed consensus Bloomberg estimates in July-September quarter.

• Net profit more than doubled to Rs 77.5 crore versus estimate of Rs 78.6 crfore
• Revenue at Rs 1210 crore versus estimate of Rs 1,300 crore
• Total costs at Rs 1,100 crore

Shares of the Ahmedabad-based air cooler maker rose as much as 9.4 percent, the most in over seven months, to Rs 1,472 after it beat consensus Bloomberg estimates in September quarter.

• Net profit more than doubles to Rs 50.67 crore versus estimate of Rs 44.5 crore
• Revenue rises 42 percent to Rs 184 crore versus estimate of Rs 174 crore
• Total costs at Rs 122 crore
• Other income at Rs 10.43 crore

Shares of the publishing and broadcasting company declined 1.3 percent to Rs 363 after its profit missed consensus Bloomberg estimates in September quarter.

• Net profit slips 12 percent to Rs 78.68 crore versus estimate of Rs 88.2 crore
• Revenue rises 5.4 percent to Rs 568 crore versus estimate of Rs 561 crore
• Total expenses at Rs 453 crore versus 409.7 crore

Shares of the country's third biggest private lender extended gains, rising as much as 7.3 percent, the most in over 20 months, to Rs 519.45. Bain Capital is said to be in advanced talks with Axis Bank to invest between $750 million and $1 billion (Rs 4,800-6,400 crore), in what could be one of the largest private equity investments in the Indian banking sector, The Economic Times newspaper reported citing unnamed sources.

Shares of the Chennai-based mobile handset maker rose as much as 1.4 percent to Rs 161.70 after the company declared its July-September quarter earnings.

• Net profit rises 12.35 percent to Rs 112.57 crore versus Rs 100.19 crore (YoY)
• Revenue from operations at Rs 10,544 crore versus Rs 9,725 crore (YoY)
• Total expenses at Rs 10,399.15 crore versus Rs 9,595 crore

Shares of the Hyderabad-based drugmaker rose as much as 1.9 percent to Rs 2,485 after it beat consensus Bloomberg estimates in July-September quarter.

• Revenues down 1.6 percent at Rs 3,559 crore versus estimate of Rs 3,715 crore
• Net profit down 1.3 percent at Rs 305 crore versus estimate of Rs 385 crore
• EBITDA up 6.5 percent at Rs 668 crore versus estimate of Rs 601 crore
• Margins at 18.8 percent versus 17.4 percent against estimate of 16.2 percent
• Global generics revenues down 1 percent
• Pharma Services & Active Ingredients (PSAI) revenues down 2 percent
• Proprietary revenues up 10 percent
• North America revenues down 11 percent (YoY)
• Europe revenues up 36 percent
• India revenues up 2 percent (YoY)
• Emerging market revenues up 14 percent
• Capital expenditure at Rs 280 crore
• R&D spend low as milestone payments deferred

Shares of the Chandigarh-based steel wheel rim maker rose as much as 1 percent to Rs 875 after it won first export order new truck wheels plant in Chennai, the company said in a stock exchange filing.

Total order is for 30,000 truck wheels to be supplied over next 12 months.

Shares of the Delhi-based automotive air-conditioning system maker rose as much as 2.7 percent to Rs 279.85 after it won order worth Rs 10 crore from the Indian Railways, Subros said in a stock exchange filing.

The company has also been shortlisted by two major Tier 1 suppliers of Indian Railways — Bombardier India and Medha Servo Drives for future projects with Integral Coach Factory, Chennai.

Shares of the country's biggest telecom service provider were trading 0.7 percent lower at Rs 487.45 ahead of its July-September quarter earnings which will be announced later today.

Here's what to watch in Q2:

Shares of the Anil Ambani-led telecom operator rose as much as 16.2 percent, the most since August 14, to Rs 18.30 a day after lenders agreed to take control of Reliance Communications Ltd. after the company’s debt-reduction plan failed.

Deal Highlights

• The banks have decided to convert Rs 7,000 crore of loans into equity
• The conversion will take place between December 7 and 15
• The lenders will get at least 51 percent stake in the operator after they invoked the Strategic Debt Reduction mechanism
• RCom has been struggling to repay loans amid hyper-competition and skimming tariffs in the telecom industry

Shares of India's third largest private lender rose as much as 4.1 percent, the most since October 25, to Rs 503.95. Bain Capital is said to be in advanced talks with Axis Bank to invest between $750 million and $1 billion (Rs 4,800-6,400 crore), in what could be one of the largest private equity investments in the Indian banking sector, The Economic Times newspaper reported citing unnamed sources.

The mood at India's sovereign bond market has turned from bad to worse. The central bank's move to drain liquidity while sticking to its scheduled bond auctions is weighing on the market.

Higher crude oil prices and a concern on fiscal discipline has further added to the misery. Yield on the 10-year note jumped 8 basis points in the last session coming precariously close to 6.90 percent and yields have risen 41 basis points since July end. Now this high yield may attract buyers but given the weak outlook on further rate cuts, it won't be enough to turn the sentiment. Investors expect a range of 6.85-6.90 percent yield on the 10-year note. Market will also be watching out for the fiscal deficit data today.

In the currency market, Indian rupee clocked its biggest gain in a fortnight in the last session, rising 0.3 percent. However, with a number of global events on the horizon, including key monetary policy decisions and economic data, investors are likely to stay away from riskier assets. The rupee may trade in a range of 64.75-65 a dollar in the session.

• Nifty November futures closed at 10,388.4, premium of 24.8 points
• November contracts: Nifty open interest up 2 percent; Bank Nifty open interest up 3 percent
• India VIX closed 5.5 percent higher at 12.11
• Max open interest for Nov series shifts from 10,500 to 10,400 Call (open interest at 32.1 lakh, up 9 percent)
• Max open interest for November series at 10,000 Put (open interest at 48.9 lakh, up 5 percent)

• Bharti Airtel
• Dr. Reddy’s Laboratories
• Ajanta Pharma
• Blue Star
• Capital First
• Cholamandalam Investment And Finance
• Container Corp
• Dabur India
• Divi's Laboratories
• Escorts
• Future Retail
• IDBI Bank
• Info Edge
• Inox Leisure
• InterGlobe Aviation
• IRB Invit Fund
• JSW Steel
• KPIT Technologies
• Max Ventures And Industries
• Polaris Consulting & Services
• Sanofi India
• SBI Life Insurance
• Sintex Plastics Technology
• Strides Shasun
• Symphony
• Syndicate Bank
• Welspun Enterprises
• Zee Media Corporation

Here’s how foreign and local funds played the market on Monday.https://t.co/gW6XGw6TrQ pic.twitter.com/8nmvpdEXks

— BloombergQuint (@BloombergQuint) October 31, 2017

Mahindra Logistics raises Rs 247 crore from anchor investors ahead of IPO.https://t.co/aB9qFa0GGD pic.twitter.com/o8N2jpifxn

— BloombergQuint (@BloombergQuint) October 30, 2017

• Infosys: Ex-entitlement basis for buyback eligibility
• Shifted to BZ cateogory for 2 quarters: Bharati Defence, Servalakhsmi Paper, Sharon Bio, and Shilpi Cable Technologies.
• Suhyog Terminals & Manaksia Steels: Circuit filter revised to 10 percent

Bharat Road Network

• Corporation San Finance bought 8 lakh shares or 1 percent equity stake at Rs 173.22 each

PI Industries

• Cartica Capital sold 44.25 lakh shares or 3.2 percent equity stake at Rs 775 each

Prakash Industries

• BNP Paribas Arbitrage sold 9.74 lakh shares or 0.6 percent equity stake at Rs 141.34 each

Veto Switchgear Cables

• Veto Electropowers India sold 1 lakh shares or 0.5 percent equity stake at Rs 203 each

SORIL Holdings and Ventures Ltd

• Anil Bansilal Lodha sold 5 lakh shares or 1 percent equity stake at Rs 90.95 each

Credit Suisse on Kajaria Ceramics

• Maintain ‘Neutral’ with price target of Rs 675.
• Volume growth remains muted at 5 percent during the previous quarter.
• Higher cost could have hurt margins; higher oil prices can pressure margins in the second half of current financial year.
• EPS for the current and next financial year cut by 8 percent and 10 percent respectively, on lower sales growth and margins.
• Medium-term industry growth and Kajaria’s positioning are attractive, near-term growth remains muted.

Goldman Sachs on Kajaria Ceramics

• Maintain ‘Buy’; Cut price target to Rs 825 from Rs 850.
• July-September results were operationally in-line.
• Despite construction market remaining muted, expect 11 percent and 20 percent growth in volume and Ebitda respectively.
• Cut Ebitda for five financial years till March 2023 by 2-3 percent due to change in mix and EPS by 4-7 percent on higher tax rate.
• Kajaria to benefit from increased penetration in the tiles sector, government focus on housing and consolidation.

Morgan Stanley on IDFC-Shriram

• Merger called off most positive for Shriram Transport Finance.
• Expect improvement in asset quality and return on asset expansion.
• Expect earnings to grow at a compound annual growth rate of 34 percent over three financial years till March 2020 and return on equity to improve to 19 percent by the financial year ending march 2020.

Morgan Stanley on Marico

• Maintain ‘Underweight’ with price target of Rs 270
• Earnings during the previous quarter remained in-line; Rising input costs impact margins.
• Expect only 8 percent earnings growth in the current financial year.
• Management expects volume growth of 8-10 percent in the second half of current financial year for domestic business.
• Operating margins to be 20 percent in the current financial year, owing to input cost pressures and increased ad spend.

Citi on Marico

• Maintain ‘Buy’ with price target of Rs 360.
• Steady rebound in the previous quarter; Margins better than expected.
• Expect better trends in the second half of current financial year, partially aided by the weak base of the present quarter (demonetisation) and stable margins.
• Strong competitive positioning is a key positive, could be further enhanced longer term with the Goods and Services Tax.

Jefferies on HDFC

• Maintain Hold; Hiked price target to Rs 1,720 from Rs 1590.
• Previous quarter was in-line with asset under management growth of 17 percent.
• Non-provisioning loans are trending up gradually - nothing too worrisome.
• Expect asset under management and earnings per share to grow at a compound annual growth rate of of 18 percent and 11 percent respectively over the three financial years till March 2020.
• Weak volumes and asset quality worries are the downside risks.
• Better volume and net interest margins are the upside risks.

Macquarie on HDFC

• Maintain ‘Outperform’ with price target of Rs 1,890.
• July- September period was stable and RERA impact not as pervasive.
• Asset under management growth was stable; Will see favourable base in the second half of current financial year.
• Net interest margins declined as non-individual loan spreads shrunk faster than individual loan yields
• Listing of HDFC Standard Life in current quarter will be the next catalyst for the stock.

Credit Suisse on Lupin

• Maintain ‘Underweight’; Cut price target to Rs 900 from Rs 920.
• Weak quarter with 14 percent decline in U.S. sales QoQ.
• Cut earnings per share estimates for the current and next financial year by 4 percent and 7 percent respectively to factor weakness of U.S. sales.
• Lupin has high risk that the financial year ending March 2020 profit is likely to be flat.

CLSA on Tata Steel

• Maintain ‘Buy’ with a price target of Rs 880.
• September quarter showed good growth, but slight miss.
• Margins should improve in both India and Europe in the second half of current financial year.
• Steel prices in both India and Europe have started to improve and coking coal costs have remained lower.
• Remain positive on strong outlook for its India business and likelihood of European joint venture going through.

Morgan Stanley on UPL

• Maintain ‘Overweight’; Cut price target to Rs 960 from Rs 1,018.
• Previous quarter results were in-line at operating level.
• Cut earnings per share estimates for the three financial years till March 2020 by 5 percent, 10 percent and 10 percent each, to factor in INR appreciation and higher tax rates.
• Market conditions remain challenging, but UPL should grow profitably ahead of the market.
• Expect revenue to grow at 13 percent growth rate over the three financial years till March 2020 and 225 basis points margin expansion over the next three years.
• Build positions into weakness ahead of a seasonally strong quarter.

Citi on UPL

• Maintains Buy; Cut price target to Rs 1,020 from Rs 1,080.
• July-September: Holding fort in a challenging year.
• Cut EPS estimates for the three financial years till March 2020 by 6.5 percent, 5.2 percent and 4.3 percent respectively to account for lower topline growth guidance.
• Company’s ability to grow and gain market share illustrate structural improvements in business model and should support valuations.

Morgan Stanley on LIC Housing Finance

• Maintain Overweight with price target of Rs 750.
• Previous quarter was weak due to higher than expected provisions and lower net interest margins.
• Overall loan growth was broadly steady, but home loan growth remained sluggish.
• Most of the near-term pressure on net interest margin could have come through and NIM should eventually head higher.

• IDFC and Shriram Group called off merger as both parties were unable to agree on a mutually acceptable swap ratio
• Bharti Infratel has decided to explore and evaluate acquisition of stake in one or more tranches in Indus Towers
• Reliance Communications makes debt resolution proposals to cut debt by Rs 17,000 crore through asset monetisation
• Zen Technologies got Rs 224 crore order from Indian government
• Titagarh Wagons in pact for JV with Italy's MERMEC for Railway Signalling System
• GTL Infrastructure completed exchange of existing bonds to reduce its debt
• Balaji Amines to invest Rs 66 crore in Balaji Speciality Chemicals Pvt Ltd.
• Thomas Cook acquired 100 percent stake in TC Forex Services from Tata Capital Ltd.
• Bain Capital is said to be in advanced talks with Axis Bank to invest between $750 million and $1 billion (Rs 4,800-6,400 crore), in what could be one of the largest private equity investments in the Indian banking sector. (Economic Times)
• Canada’s Brookfield Asset Management and Resurgent Power have bid for debt-ridden Jaiprakash Power Ventures. (Economic Times)
• The Air France-KLM combine is close to forming a commercial joint venture with Jet Airways (Economic Times)

Goldman Sachs just got more bullish -- and hawkish -- on India.https://t.co/KZrI2ucNon

— BloombergQuint (@BloombergQuint) October 31, 2017

Commodities

• West Texas Intermediate crude was little changed at $54.05 a barrel. It climbed 0.5 percent to $54.15 a barrel Monday, the highest in eight months.
• Gold was steady at $1,275.66 an ounce.