Sensex Extends Gain For Fourth Day To End Near Five-Month High

Indian equity benchmarks S&P BSE Sensex extended gains for the fourth consecutive trading session to end near a five-month high.

The 31-share index rose 0.55 percent to close above 40,000 for the first time since June 4. The NSE Nifty 50 rose 0.54 percent to end at 11,850.25. The broader markets represented by the NSE Nifty 500 Index rose 0.55 percent.

The market breadth was tilted in favour of buyers. About 1,008 stocks advanced and 769 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU Bank Index’s 3.9 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.6 percent.

BHEL

• Stock rose as much as 13.6 percent to Rs 61.10.
• CLSA upgraded the stock to ‘Buy from ‘Sell’; hiked price target to Rs 67 from Rs 54.
• Upgrade as government looks to unlock value in select CPSEs and allowing private sector to run.
• Strategic sale could value BHEL near replacement cost vs earnings-based multiples.
• BHEL has a lot to gain from a strategic partner.

Central Bank of India

• Stock rose as much as 15 percent to Rs 20.70.
• Committee approved issuing preferential capital of 158 crore shares worth Rs 3,353 crore to the Government of India.
• Approval subject to nod from Shareholders and other statutory authorities.

Ramco Cements

• Stock rose as much as 6.3 percent to Rs 796.50.
• Strong September quarter due to better operational performance and lower tax expenses.
• Revenues up 11 percent to Rs 1,316.7 crore.
• Net profit up 47 percent to Rs 168.2 crore.
• Ebitda up 19 percent at Rs 295.2 crore.
• Margin at 22.4 percent versus 20.9 percent.
• Cements sale volume up 10 percent to 27.24 LkhT
• Ebitda per tonne up 8.3 percent to Rs 1064.

Indoco Remedies

• Stock rose rose as much as 15.6 percent to Rs 178.
• India business grows 17 percent
• Revenue up 24 percent to Rs 292.6 crore.
• Net profit at Rs 7.8 crore versus net loss of Rs 7.5 crore.
• Ebitda up 2.7 times to Rs 32.6 crore.
• Margin at 11.1 percent versus 5.1 percent.

Indian equity benchmarks is set to end higher for the fourth consecutive trading session.

The S&P BSE Sensex rose 0.5 percent to 40,045 as of 2:50 p.m. and the NSE Nifty 50 rose 0.39 percent to 11,833. The broader markets represented by the NSE Nifty 500 Index rose 0.4 percent.

HDFC Life Insurance

• Stock rose as much as 5.4 percent after falling as much as 4.9 percent earlier.
• Trading volume was 11 times its 20-day average.

Caplin Point Labs

• Stock rose as much as 5.8 percent to Rs 409.40.
• Trading volume almost 13 times its 20-day average.

ITI

• Stock rose as much as 16.4 percent to Rs 100.95.
• Trading volume was more than nine times its 20-day average.

Central Bank of India

• Stock rose as much as 15 percent to Rs 20.70.
• Trading volume was almost seven times its 20-day average.

The Market breadth was tilted in favour of buyers. About 1,034 stocks advanced and 720 shares declined on National Stock Exchange.

Shares of Graphite India fell as much as 4.9 percent to Rs 299.30 after the company announced September quarter results.

Graphite India (Q2, YoY)

• Revenue down 58.5 percent to Rs 833 crore.
• Net profit down 81.7 percent to Rs 167 crore.
• Ebitda down 91.4 percent to Rs 117 crore.
• Margins at 14 percent versus 68.1 percent.

Shares of the state-owned lender rose 3.3 percent to a month-month high of Rs 290 each.

Around 20 lakh shares changed hands in a bunched trade on National Stock Exchange, according to Bloomberg data. Buyers and sellers were not known immediately.

The stock traded at 11 times its estimated earnings per share for the coming year.

Shares of D.B Corp extended declines for the second consecutive trading session. The stock fell as much as 4.8 percent, to Rs 145.40.

The scrip declined 10 percent in two days. Trading volume was more than two times its 20-day average, according to Bloomberg data. D.B. Corp traded at 7.4 times its estimated earnings per share for the coming year.

Shares of ITI rose as much as 15.3 percent, the most since May 30, to Rs 100.

Trading volume was more than 11 times its 20-day average, Bloomberg data showed. Of the shares traded, 50 percent were at the ask price and 38 percent were at the bid.

The stock has extended gains for the third consecutive trading session.

The S&P BSE Sensex’s 50-day moving average surpassed the 200-day moving average, forming a golden cross. The pattern had earlier occurred on Jan. 18, 2019.

Shares of Yes Bank fluctuated between gains and losses to trade 0.6 percent lower at Rs 57.85.

About 18.5 lakh shares of the private lender changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Eight out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU bank Index’s 1.9 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.42 percent.

About 20 lakh shares of SBI changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Nifty’s 11,800 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Thursday, rose 39.8 percent to Rs 33.45. Over 15.76 lakh shares were removed from the open interest which stood at over 30.82 lakh shares.

Indian equity benchmarks trading higher, led by the gains in Infosys Ltd. and HDFC Bank Ltd.

The S&P BSE Sensex rose 0.3 percent to 39,954 and the NSE Nifty 50 rose 0.33 percent to 11,826. The broader markets represented by the NSE Nifty 500 Index rose 0.4 percent.

Petronet LNG (Q2, QoQ)

• Stock rose as much as 6.7 percent to Rs 297.95.
• Revenue up 8.7 percent to Rs 9,361.2 crore (Estimate: Rs 9,026.9 crore)
• Net profit up 2 times to Rs 1,103.1 crore (Estimate: Rs 630.2 crore)
• Ebitda up 13.3 percent to Rs 1,160.4 crore (Estimate: Rs 1,039 crore)
• Margin at 12.4 percent versus 11.9 percent (Estimate 11.5 percent)

SKF India (Q2, YoY)

• Stock fell as much as 3.5 percent to Rs 2,182.
• Revenue down 2.5 percent to Rs 747.2 crore
• Net profit flat at Rs 84.6 crore
• Ebitda down 22.6 percent to Rs 95 crore
• Margins at 12.7 percent versus 16 percent

Tata Metaliks (Q2, YoY)

• Stock fell as much as 4.2 percent to Rs 552.20.
• Revenue down 6.6 percent to Rs 511.4 crore
• Net profit down 50.7 percent to Rs 23.4 crore
• Ebitda down 52 percent to Rs 41.1 crore
• Margins at 8 percent versus 15.7 percent

Shares of InterGlobe Aviation rose as much as 3.3 percent to Rs 1,456.35.

The budget carrier operator has placed an order for 300 A320 Neo family aircraft. This order takes IndiGo’s A320 Neo family aircraft orders to 730.

Trading volume was more than two times its 20-day average, according to Bloomberg data. The Relative Strength Index was below 30, indicating that the stock may be oversold.

Shares of the telecom operator rose as much as 2.5 percent to Rs 369.

The company’s domestic mobile business revenue up 1.1 percent to Rs 10,981 crore, compared to the estimate of Rs 10,808 crore. Mobile average revenue per user declined 0.8 percent to Rs 128, compared to the estimate of Rs 127. The customer base declined to Rs 27.9 crore versus 28.1 crore, while 4G customer base in crore eased to Rs 10.3 crore versus 9.5 crore.

Of the shares traded, 39 percent were at the ask price and 41 percent were at the bid, Bloomberg data showed.

Shares of HDFC Life Insurance recovered after falling as much as 4.9 percent.

About 10 crore shares of the company changed hands in a large trade, Bloomberg data showed.

While buyers and sellers were not known immediately, Standard Life was looking to sell up to 7.58 crore shares or 3.76 percent stake in HDFC Life Insurance.

Standard Life has offered the company’s share at a price band of Rs 562-575 per share and it seeks about $600 million or Rs 4,260 crore in the placement of HDFC Life Insurance’s shares.

Besides, there is an option to sell an additional $200 million of shares. The price range represents a discount of 5.9 percent to 8 percent from the last close.

Indian equity benchmarks opened higher, extending their gains for the fourth consecutive trading session.

The S&P BSE Sensex rose 0.6 percent to 40,044 and the NSE Nifty 50 rose 0.5 percent to 11,839. The broader markets represented by the NSE Nifty 500 Index rose 0.4 percent.

The market breadth was tilted in favour of buyers. About 935 shares advanced and 409 stocks declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty FMCG Index’s 0.49 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.15 percent.

Futures

• Nifty October futures closed at 11,795.4, a premium of 8.6 points versus a discount of 2 points
• Nifty futures across series up 4 percent, adds 7.2 lakh shares in open interest
• Nifty Bank October futures closed at 29,900.4, a premium of 27 points versus a discount of 19 points
• Nifty Bank futures across series open interest down 0.3 percent, sheds 4,400 shares in open interest
• Rollover: Nifty 30 percent, Nifty Bank 37 percent

Options

• Nifty put-call ratio at 1.48 versus 1.22 (across all series)

Nifty Monthly Expiry: Oct 31

• Max open interest on call side at 12,000 (30 lakh shares)
• Max open interest on put side at 11,700 (31 lakh shares)
• Open interest addition seen at 11,700P (+24.7 lakh shares), 11,800P (+12,800 shares), 11.750P (10 lakh shares)

• Mindtree promoter Kamran Ozair sold 6,300 shares on Oct. 25
• Apollo Tricoat Tubes promoter Saket Agarwal sold 3 lakh shares on Oct. 24

• MCX to meet Motilal Oswal AMC and Moody’s Analytics on Oct. 30

• GTL Infrastructure, GVK Power & Infrastructure to move out of short term ASM Framework
• Coastal Corporation, Ganesh Benzoplast to move into short term ASM Framework
• Shree Digvijay Cement, Paramount Communications price band revised to 10

Lakshmi Vilas Bank

• Capri Global acquired 75 lakh shares or 2.23 percent equity at Rs 14.6 each.
• Motilal Oswal AMC sold 43 lakh shares or 1.28 percent equity at Rs 14.54 each.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.11 percent to 70.92 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.5 percent to 40,033 during the pre-market trade and the NSE Nifty 50 rose 1 percent to 11,941.

• Bharti Airtel Q2 Update: Domestic mobile business revenue up 1.1 percent to Rs 10,981 crore, compared to the estimate of Rs 10,808 crore. Mobile average revenue per user down 0.8 percent to Rs 128, compared to the estimate of Rs 127. Customer base declined to Rs 27.9 crore versus 28.1 crore, while 4G customer base in crore eased to Rs 10.3 crore versus 9.5 crore.
• InterGlobe Aviation has placed an order for 300 A320 Neo family aircraft. This order takes IndiGo’s A320 Neo family aircraft orders to 730.
• PVR: Board approved issue price for 29.08 lakh shares for its QIP issue at Rs 1,719.05 per share, which is at a discount of 5 percent on the floor price at Rs 1,809.53 each.
• HDFC Life Insurance: Standard Life looking to sell up to 7.58 crore shares or 3.76 percent stake in HDFC Life Insurance. Standard Life has offered the company’s share at a price band of Rs 562-575 per share and it seeks about $600 million or Rs 4,260 crore in the placement of HDFC Life Insurance’s shares. There is an option to sell an additional $200 million of shares. The price range represents a discount of 5.9 percent to 8 percent from the last close.
• Lemon Tree Hotels has launched its first hotel under the new brand Aurika Hotel 7 Resorts in Udaipur.
• Bandhan Bank: RBI imposed a penalty of Rs 1 crore on shareholding norms as per RBI licensing guidelines.
• Lakshmi Machine Works said that it has commenced the assembly of machine tools at the Coimbatore plant for Japan’s DMG Mori. This activity will not involve any added capital expenditure.
• Central Bank: Committee approved issuing preferential capital worth Rs 3,353 crore to the Government of India.
• Jindal Stainless promoters hold 68.1 percent stake in the company, out of which 34.51 percent of the total equity stake is encumbered as a pledge.
• Saregama India: NCLAT has dismissed a plea filed by the company to initiate insolvency proceedings against Chennai-based Home Movie Makers observing that it is not a financial creditor under the Insolvency and Bankruptcy Code.

Earnings Reaction To Watch

Petronet LNG (Q2, QoQ)

• Revenue up 8.7 percent to Rs 9,361.2 crore (Estimate: Rs 9,026.9 crore)
• Net profit up 2 times to Rs 1,103.1 crore (Estimate: Rs 630.2 crore)
• Ebitda up 13.3 percent to Rs 1,160.4 crore (Estimate: Rs 1,039 crore)
• Margin at 12.4 percent versus 11.9 percent (Estimate 11.5 percent)

SKF India (Q2, YoY)

• Revenue down 2.5 percent to Rs 747.2 crore
• Net profit flat at Rs 84.6 crore
• Ebitda down 22.6 percent to Rs 95 crore
• Margins at 12.7 percent versus 16 percent

Tata Metaliks (Q2, YoY)

• Revenue down 6.6 percent to Rs 511.4 crore
• Net profit down 50.7 percent to Rs 23.4 crore
• Ebitda down 52 percent to Rs 41.1 crore
• Margins at 8 percent versus 15.7 percent

Earnings To Watch

• Graphite India
• Phillips Carbon Black
• Tata Chemicals
• Tata Global Beverages
• Balaji Amines
• JK Tyre & Industries
• Caplin Point Laboratories
• Chemfab Alkalis
• Container Corporation of India
• CreditAccess Grameen
• Fortis Malar Hospitals
• Heritage Foods
• IFB Industries
• Indoco Remedies
• International Paper APPM
• Jaiprakash Power Ventures
• Lakshmi Machine Works
• Mangalam Organics
• MPS
• Nava Bharat Ventures
• OnMobile Global
• PTC India
• Quess Corp
• Ramco Industries
• Ramco Systems
• RPG Life Sciences
• Shriram Asset Management
• Sonata Software
• The Ramco Cements
• United Bank of India
• Welspun Enterprises
• Mishra Dhatu Nigam

• U.S. stocks ended a lackluster session lower as trade headlines and a spate of corporate earnings weighed on shares ahead of tomorrow’s expected rate cut by the Federal Reserve.
• Oil extended losses into a third day after an industry report showed stockpiles rising at a key U.S. oil storage hub.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 11,813.50 as of 8:20 a.m.

Stocks in Asia were mixed early on Wednesday, with markets in a holding pattern awaiting the Federal Reserve’s policy decision.

Shares in Tokyo rose modestly, continuing a rally that’s pushed the country’s index up to the highest since December. Seoul opened flat, while equities in Sydney dipped.

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