Sensex, Nifty End At Record Highs; Airtel Surges Most In 7 Years

Shares of the Pune-based IT company rose after it beat consensus Bloomberg estimates in September quarter.

• Net profit rises 6 percent sequentially to Rs 836 crore versus estimate of Rs 738 crore
• Other income at Rs 322 crore
• Dollar revenue up 3.6 percent at $1,179.2 million (QoQ)
• Consolidated revenue rises 3.7 percent to Rs 7,606 crore versus estimate of Rs 7,556 crore (QoQ)
• Ebitda at Rs 1,106 crore
• Margin at 14.5 percent versus 12.7 percent (QoQ)

Shares of the Sajjan Jindal-led power generation company swung after September quarter earnings.

• Net profit rises 37 percent to Rs 297 crore versus estimate of Rs 216 crore
• Revenue rose marginally to Rs 2,049 crore versus estimate of Rs 2,123 crore
• Other income at Rs 170 crore
• Ebitda or operating profit up 8.4 percent at Rs 822 crore versus estimate of Rs 844 crore
• Consolidated margin at 43.1 percent versus 40.1 percent
• To set up new 36-megawatt thermal power plant

Chart Check

• The stock is currently trading Rs 94 apiece, below its issue price of Rs 102. It is testing resistance at its 50-day moving average of 95.89.

Shares of the Mumbai-based department store operator declined 0.9 percent to Rs 349 after it missed consensus revenue estimates compiled by Bloomberg.

• Standalone net profit at Rs 23.39 crore versus estimate of Rs 21.9 crore
• Standalone revenue at Rs 1,020 crore versus estimate of Rs 1,110 crore

Shares of fertiliser manufacturers rose after the Union Cabinet approved payment of outstanding subsidy payment of Rs 10,000 crore to fertilizer companies for the financial year 2016-17.

• Rashtriya Chemical and Fertiliser up 5.3 percent
• Zuari Agro Chemicals up 3.2 percent
• Fertilisers and Chemicals Travancore up 3.7 percent
• Southern Petrochemicals up 3.8 percent

New India Assurance Company's Rs 9,600 crore initial public offering was 87 percent as of 12:00 p.m. on first day of subscription.

• Portion reserved for qualified institutional buyers (QIB) subscribed 1.79 times
• Retail portion subscribed 0.01 time

Shares of Tata Motors rose as much as 2.7 percent, the most since October 27, to Rs 439.95 after it reported October sales numbers.

• Domestic sales grew 5 percent to 48,886 units (YoY)
• Exports decline 32 percent to 4,311 units (YoY)
• Domestic commercial vehicle sales rise 7 percent to 32,411 units (YoY)
• Domestic passenger vehicle sales rise 1 percent to 16,475 units (YoY)

Shares of the Chennai-based two-wheeler maker declined after it met Bloomberg consensus estimates in the September quarter.

• Revenues rose 18 percent to Rs 4,052 crore versus estimate of Rs 4,1254
• Net profit jumped 20 percent to Rs 213 crore versus estimate of Rs 210 crore
• EBITDA up 28 percent at Rs 351 crore versus estimate of Rs 330 crore
• Margin at 8.7 percent versus estimate of 8 percent

Shares of the Mumbai-based financial services company rose as much as 10.45 percent to Rs 676 after its board decided to infuse Rs 150 crore by way of additional equity capital into India Infoline Limited, the broking subsidiary of the company to meet its business requirements, the company said in a stock exchange filing.

Shares of the household products maker rose as much as 6 percent, the most in nearly three months, to Rs 990 after it beat consensus Bloomberg estimates in September quarter.

• Net profit rises 12.6 percent to Rs 362 crore versus estimate of Rs 349 crore
• Revenue rises 2.5 percent to Rs 2,497 crore versus estimate of Rs 2,527 crore
• Operating profit or Ebitda at Rs 532 crore versus estimate of Rs 509 crore
• Operating profit margin at 21.2 percent versus estimate of 20.1 percent
• Domestic volume growth of 10 percent

• Crompton Greaves has 69.9 lakh shares (1.1 percent equity) change hands in a block
• Indiabulls Real Estate has 16.4 lakh shares change hands in a block

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the shoe makers rose after the Department of Industrial Policy and Promotion (DIPP) secretary said that it is mulling financial and tax incentives for the leather industry, news agency Cogencis reported.

• Mirza International up 10.4 percent at Rs 172
• Shreeleather jumps 4.5 percent to Rs 193
• Liberty Shoes rises 5 percent to Rs 264
• Relaxo Footwears gains 13.2 percent to Rs 593
• Bata India up 2.7 percent at Rs 824

Shares of the Bangalore-based lender jumped as much as 14 percent to Rs 94.15 after its asset quality improved in the September quarter.

• Net interest income up 6.8 percent at Rs 1649.5 crore
• Net profit rose 28 percent to Rs 105.24 crore
• Gross non-performing assets (NPA) as a percentage of total advances at 9.39 percent versus 9.96 percent (QoQ)
• Net NPAs at 5.76 percent versus 6.27 percent
• Provisions down 33 percent at Rs 891 crore (QoQ)

Shares of the Delhi-based two-wheeler maker fell 1.8 percent to Rs 31,649.95 after it missed consensus Bloomberg October sales estimates.

• Total sales rise 18 percent to 69,492 units versus estimate of 72,000 units
• October exports rise 98 percent to 1,478 units versus 748 units (YoY)

• Indian equity benchmarks were trading close to record highs led by strong gains in banking and telecom shares
• Market sentiment got a boost after a World bank report showed that India made it easier to do business in the country
• Stronger than expected earnings by Indian companies also added to the sentiment
• From the Nifty 50 basket of shares 35 were advancing while 15 were declining
• Bharti Airtel was the top Nifty gainer, up 7.4 percent. ICICI Bank, State Bank of India, Axis Bank and Vedanta were also among the gainers
• The S&P BSE Telecom Index was the top sectoral gainer, up 3.85 percent. It was followed by the S&P BSE Bankex Index which rose over 2 percent

Shares of FMCG products maker rose as much as 8.4 percent, the most since May 2016, to Rs 360.85 after Delhi High Court extended its interim order in a case filed by Dabur India restricting Baba Ramdev's Patanjali Ayurved from airing an advertisement to promote its Chyawanprash brand.

Meanwhile, brokerage houses have hiked target price on the stock after it came out with earnings yesterday.

UBS on Dabur India

• Maintained ‘Buy’; hiked price target to Rs 400 from Rs 365.
• Robust recovery in domestic business; Worst over for international.
• Strategic shift towards volume growth; Rural recovery to aid.
• Management expects strong rural stimulus packages to be announced in the run-up to the 2019 elections.
• Increased visibility of volume growth in India business could rerate the stock.

Credit Suisse on Dabur India

• Maintained ‘Neutral’; hiked price target to Rs 350 from Rs 310.
• Toothpaste momentum drove domestic recovery in the previous quarter; International remains a drag.
• Expect improved volume growth in the second half of current financial year due to the lower base.
• International business decline likely to stem in the second half.
• Margins likely to remain range bound despite topline recovery as ad spends will go up.

Shares of the country's largest carmaker slipped 0.6 percent to Rs 8,160 after its October sales missed Bloomberg consensus estimates in the September quarter.

• October total sales up 9.5 percent at 1.46 lakh units versus estimate of 1.51 lakh units
• October exports rise 4.2 percent to 10,446 units (YoY)
• October domestic sales jump 9.9% to 1.36 lakh units (YoY)

The Nikkei India Manufacturing Purchasing Managers' Index, or PMI, eased in October, pointing to a stagnation of activity in the manufacturing sector.

The composite indicator of manufacturing performance stood at 50.3 in October, down from 51.2 in September.

A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.

"Disappointingly, manufacturing production rose at the weakest pace in the current sequence of growth," said Aashna Dodhia, Economist at IHS Markit, which compiles the survey. "Inflows of new orders stagnated as the negative effects arising from the implementation of GST (goods and services tax) continued to dampen demand levels. Furthermore, overseas demand for Indian goods dipped to the greatest extent since September 2013," Dodhia said.

(Nikkei)

Shares of the Gurugram-based budget carrier rose as much as 4 percent to Rs 1,298.70 after it beat Bloomberg consensus estimates in July-September quarter.

• Profit rose over four-fold to Rs 552 crore versus estimate of Rs 321 crore
• InterGlobe Aviation received credit from Pratt & Whitney and Airbus which boosted earnings in Q2
• Passenger ticket revenue grew 25.7 percent to Rs 4,523.41 crore YoY.
• Available seat kilometer increased 13 percent to Rs 1,510 crore YoY.
• Revenue passenger kilometer rose 15.4 percent to Rs 1,268 crore YoY.
• Load factor expanded 180 basis points to 84 percent YoY.
• Technical dispatch reliability stood at 99.84 percent, while the flight cancellation rate was 0.37 percent.
• Total debt with the aircraft carrier fell 7.5 percent to Rs 2,536.8 crore YoY.

It appears to be a mixed day for currencies with a number of key global events on the horizon. First, the U.S. Fed is likely to keep interest rates unchanged today paving the way for a December hike. But the big change will be announcement of Janet Yellen's successor that is scheduled on Thursday. Investors may take it light for a couple of days ahead of these announcements. A rangebound session is expected with the rupee staying in a range of 64.65-64.85 a dollar.

The sovereign bond market took a breather from two days of selling. Yield on the 10-year note fell 2 basis points in the last session. But in the absence of any major data cues, market expects a mundane session of trade. The good news to talk about is that the fiscal deficit data came pretty much in line with expectations and second, India jumped 30 places up in World Bank's ease of doing business list which is a sort of endorsement for the government's effort towards economic reforms. For bonds today, yield on the benchmark note may stay in a range of 6.83-6.90 percent in the day.

• Nifty November futures closed at 10,388.4, premium of 33.5 points from 24.8 points
• November contracts: Nifty open interest up 1 percent, Bank Nifty open interest down 2 percent
• India VIX closed 2.7 percent higher at 12.44
• Max open interest for November series shifts at 10,400 Call (open interest at 32.4 lakhs)
• Max open interest for November series at 10,000 Put (open interest at 50.5 lakh, up 3 percent)

• Hero MotoCorp
• Tech Mahindra
• Apollo Tyres
• Eclerx Services
• ENIL
• Godrej Consumer Products
• Greaves Cotton
• Hexaware Technologies
• JSW Energy
• Max India
• Shriram Transport Finance
• Tourism Finance Corporation Of India
• TVS Motor Company

#Q2WithBQ | Beat, in-line or miss? Here are companies that reported earnings after Tuesday's closing.https://t.co/08J7Amqomj pic.twitter.com/uxRWzJjJ8y

— BloombergQuint (@BloombergQuint) November 1, 2017

Here's a lineup of all major corporate/investor meetings over the next few days.https://t.co/UmE2hypeTr pic.twitter.com/NZiAX8hUZ5

— BloombergQuint (@BloombergQuint) November 1, 2017

New India Assurance IPO Opens Today: Here’s what you need to knowhttps://t.co/BpKnlspkps pic.twitter.com/KPVYK6zKmN

— BloombergQuint (@BloombergQuint) November 1, 2017

• Circuit filter revised to 10 percent: IIFL Holdings and Women's Next Loungeries
• Circuit filter revised to 5 percent: Pioneer Distilleries, HEG & Bhansali Engineering Polymers

Cyient

• Birla Sun Life MF bought 15 lakh shares or 1.3 percent equity stake at Rs 525 each
• Fidelity Series Emerging Markets Debt Fund bought 17.62 lakh shares or 1.6 percent equity at Rs 525 each
• Reliance Capital Growth Fund bought 11.6 lakh shares or 1 percent equity stake at Rs 525.39 each
• Reliance Capital Opportunities Fund bought 15.4 lakh or 1.4 percent equity stake at Rs 525.39 each
• UBS Principal Capital Asia bought 12.52 lakh shares or 1.1 percent equity stake at Rs 525 each
• First Carlyle Ventures Mauritius sold its entire stake of 1.1 crore shares or 9.9 percent equity stake at Rs 525.16 each

Skipper

• Ocean Dial Gateway to India Mauritius Ltd bought 22.9 lakh shares or 2.2 percent equity stake at Rs 229.99 each
• Purushottam Distributors sold its entire stake of 13.55 lakh shares or 1.3 percent equity stake at Rs 230 each

Mawana Sugars

• Mentor capital bought 2.5 lakh shares or 0.6 percent equity stake at Rs 122.31 each

Prakash Industries

• BNP Paribas Arbitrage sold 15.90 lakh shares or 1 percent equity stake at Rs 147.57 each

Bhushan Steel

• EARC Trust SC sold 37.83 lakh shares or 1.7 percent equity stake at an average of Rs 67.4 each

Network18

• Network Group Senior Professional Trust sold 1.1 crore shares or 1.1 percent equity stake at Rs 49.41 each

Macquarie on JSW Steel

• Maintained ‘Neutral’; hiked price target to Rs 262 from Rs 222.
• Lower iron ore availability in Karnataka and water shortage in Tamil Nadu marginally impacted volumes.
• Well placed with deflating raw materials.
• Maintain Neutral but preferred over Tata Steel to play the current steel upcycle.
• Expected weakness in steel prices in the next financial year.

IDFC Securities on JSW Steel

• Downgrade to ‘Underperform’ from Neutral; maintained target price at Rs 192
• H2FY18 outlook better than H1FY18, but largely factored in; stock looks expensive
• Expect EBITDA to grow at CAGR of 3 percent over FY17-19 due to absence of volume growth in FY19
• Next phase of volume growth will accrue from FY21, once it completes its expansion at Dolvi
• Net debt expected to remain high at Rs 36,800 crore at FY19
• Not factoring any probable acquisition of distress steel assets in India

UBS on InterGlobe Aviation

• Maintained ‘Sell’; hiked price target to Rs 930 from Rs 850.
• Previous quarter displayed impressive operational performance supported by compensation credits.
• Expect renewed pressure on yields from the final quarter of the current financial year as capacity growth accelerates.
• Raised EPS estimates for current and next financial year by 24 percent and 7 percent respectively, given better than expected performance.
• GST issues outstanding; Adding ATRs on owned basis

UBS on Dabur India

• Maintained ‘Buy’; hiked price target to Rs 400 from Rs 365.
• Robust recovery in domestic business; Worst over for international.
• Strategic shift towards volume growth; Rural recovery to aid.
• Management expects strong rural stimulus packages to be announced in the run-up to the 2019 elections.
• Increased visibility of volume growth in India business could rerate the stock.

Credit Suisse on Bharti Airtel

• The second quarter’s Ebitda surpassed on the back of Africa business.
• Raise EPS estimates by 5-6 percent for the current and next financial year to factor in better Africa margins.
• Being able to maintain margins in India in seasonally weak quarter with revenue decline is commendable.
• Trends in Africa are puzzling – with cut down on capex, network sites being shut and employee count falling.

Credit Suisse on Dabur India

• Maintained ‘Neutral’; hiked price target to Rs 350 from Rs 310.
• Toothpaste momentum drove domestic recovery in the previous quarter; International remains a drag.
• Expect improved volume growth in the second half of current financial year due to the lower base.
• International business decline likely to stem in the second half.
• Margins likely to remain range bound despite topline recovery as ad spends will go up.

Credit Suisse on JSW Steel

• Maintained ‘Outperform’; hiked price target to Rs 300 from Rs 265.
• Previous quarter matched expectations, standalone EBITDA was a beat
• Push back cost benefits to the next financial year from the second half of the current financial year.
• EPS estimamated to decline by 5 percent in the current financial year and 4 percent increase in the next financial year.
• Stay constructive on the steel cycle.

Credit Suisse on Info Edge (India)

• Maintained ‘Outperform’; hiked price target to Rs 1,300 from Rs 1,120.
• Continues to be a dominant player in recruitment, which has attractive cash flow.
• Zomato may continue to aggressively focus on growth.
• Expect slightly lower losses in 99 acres.
• Increased earnings estimates by 2-8 percent for the three financial till March 2020, reflecting higher margins in recruitment.

IDFC Securities on Shankara Building

• Initiated ‘Outperform’ rating with a price target of Rs 1,786.
• Shankara has successfully evolved into an integrated home improvement retailer.
• Shift to organised retail to accelerate with implementation of GST.
• Shankara best positioned to tap the massive $70 billion home improvement market.
• Expect revenue, EBITDA and net profit to grow at a compound annual growth rate of 11 percent, 17 percent and 29 percent over the three financial years till March 2020.
• Margins to improve by 100 basis points by March 2020.

Credit Suisse on Dr. Reddy’s

• Maintained ‘Underperform’ with a price target of Rs 1,950.
• Previous quarter was weak as sales remained weak across U.S., India and Russia.
• Gross margins were still in-line despite weak U.S. sales.
• Cut EPS estimates for the current financial year by 9 percent to reflect lower U.S. sales.
• EBITDA beat driven by low R&D; Only part of SG&A saving is sustainable.

Macquarie on Dr. Reddy’s

• Maintained ‘Neutral’ with a price target of Rs 2,500
• Uncertainty over U.S. FDA warning letter and potential impact on product approval timelines continues to be an overhang.
• Delayed timelines and reducing complex arbitrage could play spoilsport.
• Any delay in Copaxone 20mg approval poses risk to the U.S. growth estimate in the next financial year.
• Expect the stock to remain range-bound until clarity on the launch timelines.

Early onset of festival season may hit automakers’ October sales. https://t.co/YpDJJRv7XV pic.twitter.com/B2FLAiTxsN

— BloombergQuint (@BloombergQuint) November 1, 2017

• Bharti Airtel to mull sale of controlling stake in Bharti Infratel
• Reliance Communications completed merger with Sistema Shyam Tele
• SBI cuts MCLR by 5 basis points
• Karnataka Bank to cut MCLR by 10 points
• Schneider top bidder for L&T’s electrical unit (Mint)
• GIC, CPPIB may join hands with Bain to buy 10 percent in Axis Bank (Mint)

India jumps 30 places on the World Bank’s Doing Business rankings.https://t.co/CQ7ZeXKsJp pic.twitter.com/kyHcrHKoO6

— BloombergQuint (@BloombergQuint) October 31, 2017

Oil heads for second monthly gain as OPEC strategy pays off.https://t.co/F5EsKwZT6C pic.twitter.com/kKHzQJBjcK

— BloombergQuint (@BloombergQuint) October 31, 2017