Sensex, Nifty Close At New Record Highs

For more details, click here

Shares of the agro-chemicals maker swung between gains and losses after it posted a lower-than-estimated quarterly earnings.

Net profit rose 44 percent to Rs 237 crore during the three-month period, the Mumbai-based company said on Monday. This widely missed the Rs 373 crore estimated by analysts, Bloomberg data showed.

Revenue rose 6 percent year-on-year to Rs 3,770 crore, again below the forecast of Rs 3,940 crore.

Shares of the ceramics manufacturer rose as much as 5.2 percent, the most in over two months, to Rs 720. The company announced its results for the previous quarter in which the bottomline beats Bloomberg estimates.

Earnings Highlights:

• Net profit remained flat at Rs 63.7 crore (YoY). Bloomberg Estimates stood at Rs 62 crore.
• Net sales At Rs 671.2 crore versus Rs 629.2 crore (YoY)
• EBITDA rose marginally from Rs 122 crore versus Rs 126 crore (YoY)
• EBITDA margin contracted to 18.18 percent versus 20.04 percent (YoY)

Besides, the company plans to buy 43.3 lakh shares of Jax Vitrified Pvt. Ltd., according to its exchange filing.

Shares of the country's biggest mortgage lender recovered from intrdaday low and advanced 1.2 percent to Rs 1,720 after it met consensus Bloomberg estimates in the July-September quarter. Click here to read full article

• Net profit up 15 percent at Rs 2,101 crore versus estimate of Rs 1,990 crore
• Net interest income at Rs 3,151 crore versus estimate of Rs 2,646 crore
• Provisions for bad loans at Rs 95 crore versus Rs 85 crore (QoQ)
• Gross non-performing assets at 1.14 percent of total advances versus 1.12 percent in June quarter
• Loan book on AUM basis grew 18 percent (YoY)
• Individual loans accounted for 70 percent of loans provided during April-September
• Individual loans gross NPA at 0.65 percent
• Non-individual gross NPA at 2.18 percent

Shares of the Mumbai-based drugmaker erased early gains and dropped as much as 3 percent after reporting loss in the September quarter.

• Net loss at Rs 3.33 crore against profit of Rs 17.02 crore (YoY)
• Revenue at Rs 1,022 crore versus Rs 1064 crore (YoY)
• Total costs at Rs 1,100 crore versus Rs 1,060 crore (YoY)

Shares of the tea producers and marketers were trading higher and staged a good upmove in today's session.

• Rossel India up 14 percent
• United Nilgiri Tea Estates up 10 percent
• Goodricke Group up 5 percent
• Jayshree Tea up 4 percent
• Tata Global Beverages up 2.5 percent
• Mcleod Russel up 0.8 percent

Shares of the Ahmedabad-based drugmaker rose as much as 1.66 percent, the most since October 27, to Rs 498 after it received final approval from the U.S. drug regulator to market Clobetasol Propionate ointment, the company said in a stock exchange filing.

The drug is used to treat variety of skin conditions like eczema, dermatitis and allergies etc. and it will be manufactured at its Ahmedabad facility.

• Indian equity benchmarks hit record highs led by strong gains in Bharat Petroleum, ONGC, Yes Bank and ICICI Bank
• The S&P BSE Sensex rose 0.5 percent to 33,332 and the NSE Nifty 50 Index advanced 0.6 percent to 10,383.80
• All the sector gauges barring the S&P BSE Metal Index were trading higher. The S&P BSE Oil & Gas Index was the top sectoral gainer, up 1.4 percent.
• From the Nifty 50 basket of shares, 33 were trading higher while 17 were among laggards

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the country's biggest cigarette maker declined as much as 1.4 percent to Rs 265.55 after brokerages cut target price on the stock.

Axis Capital on ITC

• Maintain Buy; cut price target to Rs 320 from Rs 330.
• Cigarette volume declines 6 percent due to GST rate pass-through.
• Cut earnings per share estimate by 2-4 percent for the current and next financial year.
• Expect 2 percent cigarette volume decline in the current financial year.
• Expect revenue and earning per share to grow at a compound annual growth rate of 9 percent respectively, over three years till March 2019.

Kotak Securities on ITC

• Maintain Add; cut price target to Rs 310 from Rs 340.
• Estimate a cigarette volume decline of 6-7 percent.
• Cut earnings per share estimates by 2-3 percent for the current financial year till March 2020 on lower cigarette business assumptions.
• Tobacco taxation policy continues to hurt ITC’s ability to deliver healthier Ebit growth.

Linde India

• Stock rose as much as 6.7 percent to Rs 443.
• Net profit at Rs 10 crore versus net loss of Rs 4 crore (YoY).

Tata Metaliks

• Stock rose as much as 5.8 percent to Rs 784.
• Net profit up 52.5 percent at Rs 33.55 crore (YoY).

Navin Fluorine

• Stock rose as much as 4.7 percent to Rs 769.
• Net profit up 13.1 percent at Rs 43 crore versus Rs 38 crore (YoY).

AU Small Finance Bank

• Stock fell as much as 3.5 percent to Rs 570.95.
• Net profit down 3 percent at Rs 68.24 versus Rs 70.35 crore (YoY).
• Gross NPA at 3.08 percent versus 2.98 percent (QoQ).
• Net NPA at 2.09 percent versus 2.15 percent (QoQ).
• Provisions at Rs 40.96 crore versus Rs 29.1 crore (QoQ).

Jubilant Industries

• Stock fell as much as 6.5 percent to Rs 224.
• Net profit down 50 percent at 2.5 crore (YoY).

Sun Pharma Advanced Research Company

• Stock fell as much as 6.8 percent to Rs 355.
• Net loss of Rs 62.6 crore versus net profit of Rs 15 crore (YoY).

Ineos Styrolution India

• Stock fell as much as 6.5 percent to Rs 966.10.
• Net profit down 10.5 percent at Rs 17 crore (YoY).

The proposed merger between IDFC Group and Shriram Group will be called off as talks between the two parties have failed, people with knowledge of the matter told Bloomberg.

Stock Check

• IDFC (-0.9 percent)
• IDFC Bank (-1.19 percent)
• Shriram Transport Finance (+1.51 percent)
• Shriram City Union (+1.76 percent)
• Shriram EPC (-1.6 percent)

(Source: Bloomberg)

Shares of the budget carrier climbed as much as 1.9 percent after it said flying all 26 Airbus A320neo jets after Pratt & Whitney fixed issues. IndiGo, the world’s biggest buyer of A320neo aircraft, is flying 141 Airbus A32-family jets now.

#Q2WithBQ | ONGC's AK Srinivasan on the July-September quarter and the road ahead. https://t.co/y8MjaLC261 pic.twitter.com/UmRjpbF15O

— BloombergQuint (@BloombergQuint) October 30, 2017

#Q2WithBQ | Nifty Earnings: The scorecard so far. @darshanvmehta1 reports.https://t.co/LKrFpkaeEu pic.twitter.com/l0NwZsvAnD

— BloombergQuint (@BloombergQuint) October 30, 2017

• Reliance Nippon Life Asset Management IPO closes. Final subscription subscribed 81.45 times.
• Kalyan Jewellers says it has not finalised any plans for IPO

Here’s how foreign and local funds played the market last Friday.https://t.co/o7qd0l7tLY pic.twitter.com/9rOvNQIRGZ

— BloombergQuint (@BloombergQuint) October 30, 2017

Kotak Securities on ICICI Bank

• Maintain Buy; Hiked price target to Rs 385 from Rs 370.
• Positives from second quarter earnings: stable net interest margins, lower slippages, improvement in coverage and loan growth.
• Slippages outside the watch list are likely to be minimal in future.
• Key Concern: Impact of implementation of Indian Accounting Standard on the improving return on equity.
• Bank can re-rate from current levels as there is good momentum on asset resolution post recap news.

UBS on ICICI Bank

• Maintain Buy; hiked price target to Rs 400 from Rs 380.
• The September quarter numbers remained inline on asset quality and operating metrics.
• watch list continues to decline albeit at slower than expected pace.
• Visibility on resolution under bankruptcy law and Indian Accounting Standard are key catalysts in the near term.
• Don’t expect significant divergence; Raise earnings per share estimates for financial year ending 2019 and 2020 by 4 percent and 2 percent respectively.

IDFC Securities on ICICI Bank

• Maintains Outperformer; hiked price target to Rs 345 from Rs 315.
• July-September quarter was better than expected net interest margins and lower than expected slippages.
• Management has never been confident on asset quality in last 2-3 years though there are lumpy accounts on the watch list.
• Expect slippage going ahead to be less volatile.

BoFA-ML on Indian Oil Corp

• Maintain Neutral; hiked price target to Rs 442 from Rs 428.
• Significant earnings miss on refining might be attributed to lower volumes and higher costs.
• Continues to lose diesel market share.
• Paradip volumes increase; Paradip slated for maintenance in near term.
• Indian Oil should book further inventory gains in the present quarter.

Nomura on Indian Oil Corp

• Maintain Buy with price target of Rs 495.
• The September quarter results were weak due to lower gross refinery margins, refinery maintenance shutdowns and lower inventory gains in marketing.
• Indian Oil was unable to take optimum advantage of strong refining margins environment.
• Expect improvement in coming quarters with return of refineries from maintenance shut-downs.
• Outlook in both refining and marketing remains good.
• Indian Oil remains favourite in Oil Marking Companies; Pecking Order: Indian Oil> Bharat Petroleum> Hindustan Petroleum.

Axis Capital on ITC

• Maintain Buy; cut price target to Rs 320 from Rs 330.
• Cigarette volume declines 6 percent due to GST rate pass-through.
• Cut earnings per share estimate by 2-4 percent for the current and next financial year.
• Expect 2 percent cigarette volume decline in the current financial year.
• Expect revenue and earning per share to grow at a compound annual growth rate of 9 percent respectively, over three years till March 2019.

Kotak Securities on ITC

• Maintain Add; cut price target to Rs 310 from Rs 340.
• Estimate a cigarette volume decline of 6-7 percent.
• Cut earnings per share estimates by 2-3 percent for the current financial year till March 2020 on lower cigarette business assumptions.
• Tobacco taxation policy continues to hurt ITC’s ability to deliver healthier Ebit growth.

Credit Suisse on ITC

• Maintain Neutral and price target of Rs 310.
• Cigarette volumes are likely to have declined 6 percent; Expect volume decline over next couple of quarters.
• Volume weakness is in-line, no negative surprises and the worst for now is behind.
• Focus shifts to expectations of GST hikes in cigarettes next year.

BoFA-ML on PVR

• Maintain Buy; hiked price target to Rs 1,592 from Rs 1,557.
• PVR will continue to benefit from secular demand for movies in India.
• Though screen rollout saw some delays, Guidance of 60 screen openings intact for FY18.

IDFC Securities on PVR

• Maintain Outperformer; cut price target to Rs 1,491 from Rs 1,542.
• Cut Ebitda for the current and next financial year by 5 percent and 2.6 percent respectively, to account for poor content and sale of bluO business.
• PVR’s execution is almost flawless with industry leading growth.
• Forthcoming movie pipeline appears to be strong; Expect Ebitda to grow at a compound annual growth rate of 19 percent over three years till March 2019.

Credit Suisse on Maruti Suzuki

• Maintain Neutral; hiked price target to Rs 7,300 from Rs 6,800.
• Previous quarter showed strong numbers supported by lower-than-expected costs.
• Pay commission benefit likely to scale up; First-time buyers were half of September quarter volumes.
• Margins will be impacted by higher share of Gujarat production and commodities.
• Maruti’s execution remains best in class but valuation appears stretched.

Macquarie on Maruti Suzuki

• Maintain Outperform; hiked price target to Rs 10,000 from Rs 8,250.
• Maruti is best play on Indian auto growth; Company to add to its dominant market share.
• Expect Maruti to grow ahead of the industry given new model launches and extensive dealership network.
• Expect net profit to grow at a compound annual growth rate of 17 percent over March 2020.
• Triggers: Volume growth and market share trends.

Nomura on Maruti Suzuki

• Maintains Buy; hiked price target to Rs 9,843 from Rs 8,993.
• High growth visibility; premiumisation to drive profitability.
• Raise volume growth outlook for the current financial year to 15 percent from 13.5 percent due to strong demand.
• Nomura dealer check suggest festive demand is up 15-20 percent (YoY).
• Expect volume, revenue and earnings per share to grow at a compound annual growth rate of 13 percent, 17 percent and 21 percent respectively over March 2020.
• Maruti remains top pick

IDFC Securities on ONGC

• Maintain Outperformer; hiked price target to Rs 230 from Rs 215.
• July-September period was net profit surpassed estimates widely, driven by higher other income
• Raise ewarnings per share for the current and next financial year by 4.7 percent and 1.5 percent respectively to factor marginally higher realisations
• Positive: Growth in gas volumes, with guidance of strong growth over three years till March 2021.
• Market overcompensating near term stress due to soft domestic gas prices and stress on the balance sheet from Hindustan Petroleum acquisition.

Nomura on Reliance Power

• Upgrade to Neutral from Reduce; cut price target to Rs 42 from Rs 45.
• Tepid near-term earnings outlook, but stock fairly valued.
• Cut earnings per share estimates for the current and next financial year by 33 percent and 22 percent respectively, driven by revised estimates of net finance cost.
• Cut earnings per share estimates for the current and next financial year by 33 percent and 22 percent respectively, driven by revised estimates of net finance cost

• M&M Financial: To consider fundraising proposal on November 1
• Sunteck Realty: Closes QIP; sets Issue Price at Rs 322 apiece
• Quess Corp: To acquire 46 percent stake in Heptagon Technologies
• Kridhan Infra: To acquire 36.60 percent stake in Vijay Nirman Company
• Cadila Health gets U.S. FDA approval for generic of Tazoxifen Citrate Tablets
• IDFC Bank, Shriram set to call off merger talks (Economic Times)
• SBI asks Odisha Govt to take equity in Bhushan Steel (Business Standard)
• Tata Sons to invest Rs 30,000 crore more in Tata Teleservices (Business Standard)
• L&T to invest Rs 500 crore in missile integrated facility (Business Line)

For a complete list of stocks, click here!

• India’s Largest Insurer LIC May Participate in Bank Rescue Plan (PTI)
• IDFC Bank, Shriram Set to Call Off Merger Talks (Economic Times)
• India Ministers Suggest GST Cut for Some Manufacturers (PTI)

Commodities

• West Texas Intermediate crude was little changed at $53.94 after rising 2.4 percent on Friday, when it hit the highest in about six months.
• Gold slipped 0.2 percent to $1,271.68 an ounce.