Sensex, Nifty End Flat For A 2nd Day As Gains In Metals Get Offset By Falling Tech, Power Stocks

Closing Bell

Indian shares closed lower for a second straight session, as trading resumed after a public holiday, with software companies and lenders offsetting advances in metal and power producers.

Tata Consultancy Services Ltd. and Infosys Ltd., the nation’s largest technology companies, were down over 1.5 percent with the latter hitting a new 52-week low.

The S&P BSE Sensex declined 0.2 percent to 27,876 while the NSE Nifty was little changed at 8,626. The market breadth, which started on a positive note, was skewed in favour of the sellers at close. About 942 stocks declined, 690 advanced and 257 remained unchanged on the NSE.

Closing Bell

Indian shares closed lower for a second straight session, as trading resumed after a public holiday, with software companies and lenders offsetting advances in metal and power producers.

Tata Consultancy Services Ltd. and Infosys Ltd., the nation’s largest technology companies, were down over 1.5 percent with the latter hitting a new 52-week low.

The S&P BSE Sensex declined 0.2 percent to 27,876 while the NSE Nifty was little changed at 8,626. The market breadth, which started on a positive note, was skewed in favour of the sellers at close. About 942 stocks declined, 690 advanced and 257 remained unchanged on the NSE.

Chart of the Day

Tata Motors Oct Sales Jump 21%; Stock Swings

Shares of the homegrown automaker swung between gains and losses after reporting a 21 percent sales growth in October compared to the same period last year.

Key Highlights:

• Passenger vehicles business recorded highest sales in the last four years with over 28 percent growth, due to strong demand in festive season
• Tata Tiago continues to receive positive response with retails showing increasing trend
• Commercial Vehicles business records highest sales this year with growth of 15%
• MHCV sales recovered to grow by 9 percent in October after 4 months of negative growth.
• LSCV strongly continued the growth trend in FY17 with a growth of 21 percent versus last year, owing to strong festive demand
• Export business growth bolstered by 39 percent led by strong demand for Tata Motors commercial vehicles

Are Markets Under-Prepared for President Trump?

While most experts BloombergQuint spoke to on the occasion of Muhurat trading on Sunday were gung-ho on Indian equities, they were not so sure about the global picture.

Global equity markets are woefully underprepared for President Donald Trump, said Ramesh Damani, member of the Bombay Stock Exchange and a long time investor. (Catch the entire interview HERE)

• Did you miss out on our Samvat 2073 coverage? Don’t worry. You can catch all the best highlights HERE.
• Also, don’t forget the Promising Stars of Samvat 2073
• Looking for a booster shot for your portfolio? Nilesh Shah of Kotak AMC has just the right sector for you, click HERE
• There’s more: Deven Choksey Lists Out His Top Picks For Samvat 2073
• Upgrading Construction Stocks: A First For Credit Suisse's Neelkanth Mishra

Metal Index Outperforms Sensex, Nifty

Shares of the metal companies were the top gainers in early trade on the back of zinc prices touching a five-year high on the London Metal Exchange. Metal prices have perked up as signs of the Chinese economy stabilising emerged.

S&P BSE Metal index, which was also the top performer in Samvat 2072, started the new year i.e. Samvat 2073 with biggest single day jump since April 20 of this year.

Metal Index Outperforms Sensex, Nifty

Shares of the metal companies were the top gainers in early trade on the back of zinc prices touching a five-year high on the London Metal Exchange. Metal prices have perked up as signs of the Chinese economy stabilising emerged.

S&P BSE Metal index, which was also the top performer in Samvat 2072, started the new year i.e. Samvat 2073 with biggest single day jump since April 20 of this year.

AUTO SALES UPDATE

Ashok Leyland’s Oct Sales Jump 28%

The truck maker fluctuated between gains and losses after reporting a 28 percent rise in sales for the month of October.

India’s second largest commercial vehicle maker sold 12,533 units compared to 9,803 units in October 2015, the company said in its filing to the exchanges.

The sale of medium and heavy commercial vehicles segment grew 33 percent to 9,574 units compared to 7,176 units in October last year.

Eicher Motors October Sales Rise 33%, Exports Soar

The maker of the Royal Enfield motorcycles jumped as much as 3.9 percent after it reported 33 percent increase in total sales and a near two-fold jump in exports in the month of October.

Maruti’s Oct Sales Disappoint

The country's largest car maker dropped 0.4 percent to Rs 5,872 after its sales dipped in the month of October. Maruti sold 1,33,793 units in October compared to 1,34,209 vehicles in October 2015, it said in a press release. (More details HERE)

India's Manufacturing Sector Growth At Near 2-Year High in Oct: PMI

Manufacturing sector growth in India hit a 22-month high in October, driven by a sharp and accelerated increase in new orders, purchasing activity and output, a monthly survey showed today.

The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- a gauge of manufacturing performance -- rose to 54.4 in October from 52.1 in September, indicative of a robust improvement in manufacturing business conditions in the country.

A reading above 50 in terms of manufacturing performance indicates expansion, while the marking below it means contraction.

For more details, click HERE

Stocks Reacting to Earnings

• Avanti Feeds (+1.4% to Rs 541): Q2 net Rs 37.34 crore versus Rs 43.96 crore
• Tata Teleservices (-1.4% to Rs 7): Q2 loss Rs 468 crore versus loss Rs 176 crore YoY
• Ujaas Energy (+13% to Rs 34): Q2 net Rs 9.71 crore versus Rs 3.28 crore
• Inox Wind (-1.2% to Rs 209): Q2 net Rs 56.42 crore versus Rs 93.92 crore YoY
• JK Cement (+0.5% to Rs 958): Q2 profit Rs 40.91 crore versus Rs 14.54 crore
• JM Financial (+1.3% to Rs 88): Q2 net Rs 115 crore versus Rs 97.26 crore
• Mahindra Holidays (+2% to Rs 460): Q2 net Rs 32.87 crore versus Rs 26.94 crore
• Marico (-0.8% to Rs 275): Q2 net Rs 177 crore versus estimate Rs 178 crore
• NTPC (+0.2% to Rs 151): Q2 net Rs 2,500 crore; estimate Rs 2,300 crore
• Nestle India (-0.6% to Rs 6,900): Q3 net Rs 270 crore versus Rs 120 crore year ago; estimate Rs 260 crore
• GIC Housing (+0.3% to Rs 345): Q2 net Rs 34.37 crore versus Rs 29.79 crore YoY
• HCL-Infosystems (+0.6% to Rs 53): Q2 loss Rs 37.13 crore versus Rs 2.86 crore loss
• Century Textiles (+1.8% to Rs 961): Q2 net Rs 41.1 crore versus loss Rs 31.45 crore YoY
• Colgate Palmolive India (-1.2% to Rs 959): Q2 net Rs 181 crore, estimate Rs 166 crore
• Dish TV (-1.4% to Rs 98): Q2 net Rs 70 crore versus estimate Rs 56.1 crore

Opening Bell

Indian shares edged higher amid a reversal of losses in Asian peers, after Chinese manufacturing gauges climbed to two-year highs and Bank of Japan kept monetary rates unchanged.

The S&P BSE Sensex gained 0.2 percent to 27,991 while the NSE Nifty climbed 0.3 percent to 8,653. The market breadth was skewed in favour of the buyers at 838 advances, 605 declines and 406 stocks remaining unchanged.

Opening Bell

Indian shares edged higher amid a reversal of losses in Asian peers, after Chinese manufacturing gauges climbed to two-year highs and Bank of Japan kept monetary rates unchanged.

The S&P BSE Sensex gained 0.2 percent to 27,991 while the NSE Nifty climbed 0.3 percent to 8,653. The market breadth was skewed in favour of the buyers at 838 advances, 605 declines and 406 stocks remaining unchanged.

Market Movers: Sical Logistics, Kitex Garments, Aviation Stocks And More

Bank of Japan Maintains Policy Balance Rate at -0.1%

The Bank of Japan kept its monetary policy stance unchanged even as it trimmed its forecast for inflation for the coming fiscal year to 1.5 percent from 1.7 percent.

The vast majority of economists surveyed by Bloomberg News had expected no change in the key policy tools this time, after the central bank re-set its monetary programme in September following a comprehensive policy review.

Stocks to Watch

• Adani Ports: To deleverage further and will grow cargo volumes at compounded rate of 14 per annum, according to Fitch Ratings
• Bosch: Resumes operations at Jaipur plant after Rajasthan State Pollution Control Board keeps a notice to close the plant in abeyance for a month.
• Emami: Board approves dividend distribution policy
• Heritage Foods: To buy dairy business of Reliance Retail
• Reliance Capital: Approves demerger of real estate lending unit
• Sical Logistics: Mining business expected to generate 15b rupees revenue in 7-yrs
• UCO Bank: Tier 1 perp, upper Tier 2 cut to A from A+ at Crisil
• Yes Bank: Ashok Chawla takes charge as non-executive chairman
• Bharti Infratel: KKR, Canada Pension in talks to buy stake in the telecom tower company (Economic Times)
• JSW Steel: Unit rejected by Supreme Court on $55 million antitrust award
• Reliance Industries, Oil & Natural Gas (ONGC): Reliance, Partners face $1 billion fine for using ONGC gas (Business Standard)
• Siemens: To power cities across up through energy-management system

For a complete list of stocks to watch, click HERE

Earnings to Watch

• Century Enka
• VST Industries
• Kellton Tech Solutions
• MIC Electronics
• Majesco
• Hindustan Media Ventures
• GNA Axles
• Century Plyboards (India)

Talking Points

• India’s forex reserves rise $1 billion to $367 billion as of Oct. 21
• Reliance Ports sells Rs 2,000 crore 10 year bonds at 7.95 percent
• India September key industries’ output rises 5 percent YoY
• Global funds sell Rs 778 crore of local stocks; domestic funds buy Rs 1,124 crore: Provisional data
• Ericsson may get $500 million from Airtel deal (Economic Times)
• ICICI Bank cuts 1-year MCLR by 10bps to 8.95 percent
• KKR, Canada pension in talks to buy Bharti Infratel stake (Economic Times)

Inside the Mira Road call center scam: How thousands of Americans were duped. @VarunAcj investigates.

Read| https://t.co/x5rlmdzacD pic.twitter.com/6zxVCMh3BG

— BloombergQuint (@BloombergQuint) November 1, 2016

Tata-Mistry Saga Update

• Tata Sons said to set up team to respond to India regulators
• Tata Group Chief Human Resources Officer N.S. Rajan resigns
• Two advisers of ousted Tata Sons Chairman Mistry said to resign
• Mistry refutes Tata claim Group wasn’t informed of Welspun deal
• Tata Trust Trustee Khambata starts mediation talks (CNBC- TV18)
• Ratan Tata, Mistry met Prime Minister Modi, Standard Reports
• Mistry family’s Tata stake may be worth 900b rupees: Standard
• Tata Sons standalone profit drops 67 percent in FY16: Economic Times

Darius Khambata resigned as trustee of Sir Dorabji Tata Trust on October 25, reports @menakadoshi

Read| https://t.co/KIWRbbACD9

— BloombergQuint (@BloombergQuint) November 1, 2016

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, climbed 0.3 percent to 8,629.

Asian stocks reversed losses this morning, after Chinese manufacturing gauges climbed to two-year highs, adding to evidence of improvement in the region’s biggest economy. Japanese shares were trading lower ahead of the Bank of Japan’s meeting.

All but two of the 43 economists surveyed by Bloomberg expect no additional easing from Governor Haruhiko Kuroda this month.

Crude prices stabilized after tumbling a day before by the most in a month amid disappointment that OPEC-led talks among major oil producers failed to yield details on a deal to cut output.

The U.S. benchmarks closed marginally lower on Monday, but closed October with their biggest monthly loss since January. U.S. shares suffered a late selloff on Friday after the Federal Bureau of Investigation said the agency is reviewing e-mails possibly related to Democratic presidential candidate Hillary Clinton’s use of a private server.

The U.S. stock market has a favorite in the election.

Read | https://t.co/Dqz9FEV2Mh pic.twitter.com/ygf0QEHblD

— BloombergQuint (@BloombergQuint) November 1, 2016

The bond market sees the Federal Reserve keeping rates unchanged when it meets this week and raising them at its final gathering of the year, according to data compiled by Bloomberg based on futures. The probability of a move in December is about 71 percent.

US markets trade near a 6-week low; Asia opens weak. Crude falls as OPEC fails to finalize output cut deal.

Read| https://t.co/ipnZlxhAXt pic.twitter.com/619T535ijO

— BloombergQuint (@BloombergQuint) November 1, 2016