Sensex, Nifty Gain For A Second Day Led By Automakers

Closing Bell

Indian shares climbed for a second straight session tracking a rebound in global equities. Automakers gained the most, led by Maruti Suzuki and Eicher Motors, on the back of strong September sales performance.

The S&P BSE Sensex gained 1.3 percent to 28,243 while the NSE Nifty advanced 1.5 percent to 8738, most since September 6. The market breadth was firmly in favour of the bulls at 1,433 advances, 204 declines and 238 stocks remaining unchanged.

All 19 sectoral gauges on the Bombay Stock Exchange closed higher, with the S&P BSE Realty index gaining the most, and the S&P BSE Information Technology index gaining the least.

Closing Bell

Indian shares climbed for a second straight session tracking a rebound in global equities. Automakers gained the most, led by Maruti Suzuki and Eicher Motors, on the back of strong September sales performance.

The S&P BSE Sensex gained 1.3 percent to 28,243 while the NSE Nifty advanced 1.5 percent to 8738, most since September 6. The market breadth was firmly in favour of the bulls at 1,433 advances, 204 declines and 238 stocks remaining unchanged.

All 19 sectoral gauges on the Bombay Stock Exchange closed higher, with the S&P BSE Realty index gaining the most, and the S&P BSE Information Technology index gaining the least.

MCX Looks to Launch Options Trading in Jan-Mar Quarter

Commodity exchange MCX plans to launch options trading in the next quarter of this fiscal in a few commodities like bullion and crude oil following Sebi's decision to allow such trading on bourses.

Market regulator Sebi on September 28 had allowed options trading on commodity exchanges with an aim to deepen the commodity derivatives markets and enhance liquidity.

Source: PTI

Birla Sees India Raid Bringing Stock Prices to Attractive Levels

Pricey stock valuations had prompted Birla Sun Life Asset Management Co. to double its cash levels. Now, India’s fourth-biggest money manager says it will reduce the hoard as declines after the nation’s attacks on terrorists camps in Pakistan present a buying opportunity.

Read the full article HERE

Gayatri Projects Bags Rs 926 Crore Order

Shares of Hyderabad-based infrastructure firm rose as much as 6.8 percent to Rs 675 after it secured a Rs 926 crore highway contract in the state of Bihar.

The order is from the Bihar State Road Development Corp. and Ministry of Road Transport and Highways for the four-laning of Gaya-Hisua-Rajgir-Nalanda-Biharsharif section of National Highway 82.

According to the company press release, its order book has more than doubled to Rs 12,000 crore in the last 18-months.

Reliance Infra Extends Gains After Unit Forms JV With Dassault

Shares of Anil Ambani-led firm rose as much as 6 percent to Rs 584 after its unit Reliance Aerospace announced a joint venture with French fighter aircraft maker Dassault.

The “Dassault Reliance Aerospace” Joint Venture will be a key player in the execution of offset obligations, as a part of the 36 Rafale fighter Jets purchase agreement at a value of €7.87 billion, or about Rs 59,000 crore signed between France and India on September 23, 2016. The agreement includes a 50 percent offset obligation which is the largest ever offset contract in the history of India.

Reliance Infra’s Press Release. 

Reliance Infra Extends Gains After Unit Forms JV With Dassault

Shares of Anil Ambani-led firm rose as much as 6 percent to Rs 584 after its unit Reliance Aerospace announced a joint venture with French fighter aircraft maker Dassault.

Post the announcement, another ADAG group firm Reliance Defence jumped as much as 10.6 percent to Rs 62, most since March 8 of this year.

RBI Takes Centrestage Ahead of Tomorrow’s Policy Meet

The Reserve Bank of India’s monetary policy review on Tuesday will see the stamp of Governor Urjit Patel and the Monetary Policy Committee (MPC).

After a two-day meeting, the MPC will announce its decision at 2.30 p.m. on October 4. Since the market is still trying to assess the leanings of both Patel and the MPC, economists are split between whether the RBI will cut rates now or later.

.@RBI Governor Urjit Patel's first policy review | Will government bond yields fall further? https://t.co/m0K3cEtuLx @alexandermats pic.twitter.com/39EkZ2sgUE

— BloombergQuint (@BloombergQuint) October 3, 2016

Will India’s monetary policy committee be relevant in meeting the inflation target? https://t.co/CMgDJcZ4fu @rajangovil for @BloombergQuint pic.twitter.com/vpYceXHBk6

— BloombergQuint (@BloombergQuint) October 3, 2016

Nikkei India Sept Manufacturing PMI at 52.1 Vs 52.6 in Aug

Manufacturing activity in September sustained its upturn, but lower than the previous month, as purchasing managers said new orders, buying levels and output expand but rates of growth ease in all three cases, according to data released Monday.

The Nikkei India manufacturing purchasing managers index fell to 52.1 in September from 52.6 in August. Any reading above 50 indicates improving conditions—what’s been the case for the last nine months.

“The Indian manufacturing industry lost momentum in September, as the growth of new orders eased from August’s 20-month high. However, the output is still rising at a decent clip and the sector looks likely to have delivered a stronger contribution to GDP growth in Q2 FY2016-17, with the quarterly reading for the PMI’s Output Index up from 51.4 during April-June to 53.6.

Pollyanna De Lima, author of the report and economist at IHS Markit wrote.

Bajaj Auto Sept Sales Drop On Weak Exports

The two and three-wheeler maker's sales dropped for the fourth straight month in September as its performance in the international markets continued to decline.

Total sales fell 2.1 percent to 3.76 lakh units from 3.84 lakh units in September 2015, the company said in a press release.

Motorcycle sales remained sluggish, growing one percent to 3.31 lakh units. Commercial vehicle sales fell 17 percent to 44,789 units compared to 54,172 units.

Bajaj Auto Sept Sales Drop On Weak Exports

The two and three-wheeler maker's sales dropped for the fourth straight month in September as its performance in the international markets continued to decline.

Total sales fell 2.1 percent to 3.76 lakh units from 3.84 lakh units in September 2015, the company said in a press release.

Motorcycle sales remained sluggish, growing one percent to 3.31 lakh units. Commercial vehicle sales fell 17 percent to 44,789 units compared to 54,172 units.

Despite the weak sales, the shares continued to hold on to their early gains at Rs 2,891 a piece, up 2.4 percent.

Market Movers: Ashok Leyland, Indian Oil, Kotak Mahindra, Telecom and More

Opening Bell

Indian shares climbed higher on the first day of the week, following a rebound in Asian equities, led by auto makers after reporting strong set of September sales.

The S&P BSE Sensex gained 0.6 percent to 28,021 while the NSE Nifty advanced 0.7 percent to 8,672. The market breadth was encouraging at 1,047 advances, 304 declines and 392 stocks remaining unchanged.

Opening Bell

Indian shares climbed higher on the first day of the week, following a rebound in Asian equities, led by auto makers after reporting strong set of September sales.

The S&P BSE Sensex gained 0.6 percent to 28,021 while the NSE Nifty advanced 0.7 percent to 8,672. The market breadth was encouraging at 1,047 advances, 304 declines and 392 stocks remaining unchanged.

#ThankGodItsFriday with @NileshShah68 | What's in store for Indian markets? https://t.co/Kav76dh9Zf pic.twitter.com/QA0qwxZv5P

— BloombergQuint (@BloombergQuint) October 2, 2016

Stocks to Watch

• Cairn India: India considering extending company’s Rajasthan block rights
• Indian Oil: Raised gasoline price by Rs 0.28 per liter and cut diesel price by Rs 0.06 from October 1
• JM Financial: Says asset reconstruction company has become its unit
• Kotak Mahindra: To acquire BSS Microfinance for Rs 139 crore

Kotak Mahindra Bank acquires microfinance firm for Rs 139 crore. https://t.co/cSSNbrT5tw pic.twitter.com/18U8d5qfMP

— BloombergQuint (@BloombergQuint) October 2, 2016

• Mahindra & Mahindra: September vehicle sales rise 7.7 percent YoY to 46,130 units
• Maruti Suzuki: September sales rise 31.1 percent YoY to 149,143 units
• Multi Commodity Exchange: Says RBI permitted FIIs/RFPIs to raise holding in company’s equity to 34 percent from 24 percent
• Syndicate Bank: Raised Rs 776 crore selling shares to government
• Tata Motors: September sales rise 8 percent to 48,648 vehicles
• Caisse to invest $430 million in Edelweiss ARC, TVS Logistics (Economic Times)
• Sembcorp says some India businesses could be spun off (Times of India)

Data/Events to Watch

• 10:30am: Nikkei India Manufacturing PMI for September; no ests. (Prior 52.6)
• CCL Products to announce second quarter earnings
• Prataap Snacks said to file draft papers for IPO (PTI)

Will @RBI Governor Urjit Patel cut rates in his first policy review? https://t.co/m0K3cEtuLx pic.twitter.com/udib15rDc6

— BloombergQuint (@BloombergQuint) October 2, 2016

Talking Points

• 2 Terrorists, 1 BSF Jawan Killed In Attack On Army, BSF Camps In Baramulla
• India extends SBI Chairman Arundhati Bhattacharya’s term by a year
• Finance Minister Arun Jaitley says Rs 65,250 crore ($9.8 billion) declared under tax amnesty plan

Black money scheme, based on preliminary figures, suggests huge success, BMR Legal's Mukesh Butani says. https://t.co/C7KKC6K3Hz pic.twitter.com/zf90WBQnmq

— BloombergQuint (@BloombergQuint) October 2, 2016

• Jaitley says GST council to meet October 18-20
• Telecom spectrum auction sees most bidding in 2300MHz band
• India formally ratifies Paris climate accord
• India Aug. key industries’ output rises 3.2 percent YoY
• India April-August budgeted gap at Rs 4.08 lakh crore or 76.4 percent of FY17 estimate0
• Global gas prices prompt India to cut domestic rates by 18 percent to $2.50 per MMBtu

Why banks are urging you to change your ATM PIN? Reports @dugalira https://t.co/qOxGKx1XRx pic.twitter.com/aafYjCI10M

— BloombergQuint (@BloombergQuint) October 2, 2016

• India DGH to decide compensation in ONGC-RIL gas case: Pradhan
• Forex reserves rise $1.2 billion to $370.8 billion in week to September 23: RBI
• SEBI to allow options in 1 farm, 1 non-farm commodity
• Monsoon rains 3 percent below normal in June 1-September 30 period
• Vedanta promotes Arun Kumar to CFO position from deputy
• Global funds sell Rs 1,030 crore of local stocks; domestic funds buy Rs 1,560 crore on September 30: Provisional data
• India’s unemployment rate at five-year high (Times of India)

The country's biggest-ever spectrum auction got off to a flying start. https://t.co/GsthuRHkEZ

— BloombergQuint (@BloombergQuint) October 2, 2016

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, gained 0.2 percent to 8,668.

Asian stocks rose Monday, as concern about Deutsche Bank AG’s finances eased after the lender was reported to be lining up a less-costly settlement with U.S. regulators than investors feared. Brexit fears weighed on the pound and oil retreated from a six-week high.

Deutsche Bank’s woes said to rouse German concern over finances https://t.co/3dBLfkqD8Y pic.twitter.com/p3itHZBmS0

— BloombergQuint (@BloombergQuint) October 1, 2016

British Prime Minister Theresa May said she’ll start pulling the U.K. out of the European Union in the first quarter of 2017. Markets in China, Malaysia, and South Korea are shut for holidays on Monday.

Oil declined from the highest close in six weeks as U.S. producers increased drilling and Iran signalled it’s seeking to boost exports after OPEC members agreed to reduce output at a meeting last week.

On Friday, U.S. stocks rallied boosted by a double-digit rally in Deutsche Bank AG shares and gains in consumer-staples companies after Costco Wholesale Corp. earnings beat estimates. The CBOE Volatility Index wiped out a September climb, sliding 5.2 percent to 13.29.

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, gained 0.2 percent to 8,668.

Asian stocks rose Monday, as concern about Deutsche Bank AG’s finances eased after the lender was reported to be lining up a less-costly settlement with U.S. regulators than investors feared. Brexit fears weighed on the pound and oil retreated from a six-week high.

Deutsche Bank’s woes said to rouse German concern over finances https://t.co/3dBLfkqD8Y pic.twitter.com/p3itHZBmS0

— BloombergQuint (@BloombergQuint) October 1, 2016

British Prime Minister Theresa May said she’ll start pulling the U.K. out of the European Union in the first quarter of 2017. Markets in China, Malaysia, and South Korea are shut for holidays on Monday.

Oil declined from the highest close in six weeks as U.S. producers increased drilling and Iran signalled it’s seeking to boost exports after OPEC members agreed to reduce output at a meeting last week.

On Friday, U.S. stocks rallied boosted by a double-digit rally in Deutsche Bank AG shares and gains in consumer-staples companies after Costco Wholesale Corp. earnings beat estimates. The CBOE Volatility Index wiped out a September climb, sliding 5.2 percent to 13.29.