Sensex, Nifty Clock Best Weekly Gain In Over Two Years

India’s non-bank lenders may default on repaying debt raised from the nation’s money market within the next six weeks if additional liquidity is not provided immediately, a person familiar the matter said, citing a letter written by the finance ministry.

Non-bank financiers and mortgage lenders have Rs 2.7 lakh crore ($37 billion) of debt maturing in the next five months, the person said, asking not to be named as the information is not public. According to the letter sent to the corporate affairs ministry, a default could adversely impact productive sectors of the economy, the person said. Bloomberg News has reviewed the correspondence.

Shares of the power producer swung between gains and losses after its September quarter profit missed Bloomberg consensus estimates.

Key earnings highlights:

• Net profit at Rs 2,426 crore versus estimate of Rs 2,577 crore
• Revenue at Rs 22.261 crore versus Rs 19,698.75 crore (YoY)

Shares of the aluminum and copper maker pared gains to trade 2.4 percent higher at Rs 237 after it reported September quarter earnings.

Key earnings highlights (Hindalco standalone and Utkal Alumina):

• Net profit up 54 percent at Rs 725 crore
• Ebitda up 5 percent at Rs 1,922 crore
• Revenue at Rs 10,830 crore

Shares of the country's largest state-run oil refiner held on to gains and was up 4.9 percent at Rs 149 after it reported profit of Rs 3,247 crore in September quarter which missed Bloomberg consensus estimate of Rs 4,729 crore.

Key earnings highlights:

• Net profit down 52 percent at Rs 3,247 crore versus Rs 6,831 crore (QoQ)
• Net revenue at Rs 1,32,035 crore versus Rs 1,29,475 crore (QoQ)
• Ebitda down 46 percent at Rs 6,762 crore versus Rs 12,576 crore (QoQ)
• Margin at 5.12 percent versus 9.71 percent (QoQ)

• Security & Intelligence Service: The Delhi-based security service provider rose as much as 2.3 percent to Rs 850. Trading volume was 56.4 times its 20-day average.
• Grindwell Norton: The Mumbai-based abrasive products maker rose as much as 2 percent to Rs 504. Trading volume was 20.1 times its 20-day average.
• Coal India: The state-run coal miner rose as much as 1.3 percent to Rs 264.50. trading volume was 14 times its 20-day average.
• Akzo Nobel: The Gurugram-based paint maker rose as much as 2.8 percent to Rs 1,580. Trading volume was 12.2 times its 20-day average.

Shares of the private lender rose 2.1 percent to Rs 616.40 apiece. The bank is scheduled to announce its September quarter earnings today.

Preview (Q2, Year-on-Year)

• Net interest income expected to rise 13.4 percent to Rs 5,147 crore.
• Net profit likely to increase 75 percent to Rs 759 crore.

Shares of the Aditya Birla Group alluminium and copper maker rose as much as 3.5 percent to Rs 239.40 after its subsidiary Novelis reported September quarter earnings.

Key earnings highlights:

• Net profit up 56 percent (YoY) at $116 million (YoY)
• Adjusted Ebitda increased 18 percent to $355 million (YoY)
• Net sales increased 12 percent to $3.1 billion (YoT)
• Generated free cash flow of $108 million
• Novelis secured financing for pending Aleris acquisition
• Acquired $775 million of incremental term loan with a five-year maturity, and up to a $1.5 billion short-term bridge loan with a one-year maturity
• Expect to replace the bridge loan with permanent financing soon after closing, depending on market conditions

Shares of the Tamil Nadu-based private lender swung between gains and losses after it reported September quarter earnings.

Key earnings highlights:

• Net interest income up 12 percent at Rs 398 crore versus Rs 355 crore (YoY)
• Net profit up 16 percent at Rs 168 crore versus Rs 145 crore (YoY)
• Gross non-performing assets as a percentage of total advances at 2.85 percent versus 3.02 percent (QoQ)
• Net non-performing assets as a percentage of total advances 1.69 percent versus 1.70 percent (QoQ)

The Indian rupee is set to strengthen for a second day after the dollar weakened overseas and oil prices declined.

The implied opening from forwards suggest spot rupee will start trading around 73.13 having ended at 73.45 on Thursday, which was 0.7 percent higher and the biggest one-day rise since Oct. 12.

Prospects for easing tensions between leaders of the United States and China are helping round out a week that’s seen appetite for risk assets return following the October rout in equities.

In the bond market, falling oil prices and the RBI's bond purchases are expected to boost sentiment.

The benchmark 10-year yield fell 3 basis points on Thursday to 7.82 percent and was heading for a fourth weekly decline.

Foreign banks were biggest sellers of sovereign bonds Thursday, offloading Rs 1,760 crore of debt, exchange data showed. While they sold, domestic mutual funds were biggest buyers at Rs 1,260 crore. Later in the day, India will sell Rs 11,000 crore of bonds.

On HPCL

Deutsche Bank Research

• Maintained ‘Hold’; hiked target price to Rs 240 from Rs 230, indicating a potential upside of 5 percent from last regular trade.
• Second-quarter net profit and Ebitda below estimates.
• Headwinds ahead in the marketing business.

IDBI Capital

• Downgraded to ‘Accumulate’ from ‘Buy’; Maintain target price at Rs 248; indicating a potential upside of 8 percent from last regular trade.
• Second-quarter below expectation led by lower than expected sales volume, weaker GRM and higher forex losses.
• Lower crude price and regular price hike to improve marketing margins.
• Expect crude oil price to soften and election year would continue to act as an overhang.

Morgan Stanley On HDFC

• Maintained ‘Overweight’ with target price of Rs 2,400; indicating a potential upside of 36 percent from last regular trade.
• Net profit below estimates driven by lower net interest income and higher provisions.
• Loan spread was stable at 2.28 percent

Morgan Stanley On Marico

• Maintained ‘Equal-weight’ with target price of Rs 320.
• Second-quarter steady; in-line with estimates.
• Rise in input cost material impacted Q2 margins.
• Positives: Steady performance in domestic coconut oil segment and new launches in hair care segment.

IDFC Securities on Indraprastha Gas

• Maintained ‘Outperform’ for target price of Rs 345; Potential Upside 24 percent.
• Finally, Gurugram to come under IGL control.
• Material growth opens for IGL.
• IGL’s volume visibility extending comfortably till FY25 by this move.

Deutsche Bank Research on October Auto Sales

• Heavy truck growth moderates, light truck remain strong.
• Passenger vehicles growth continues to moderate.
• Maruti - volume growth muted as expected.
• Mahindra - SUV growth improves marginally; Expect revival in remainder of FY19.

Nomura on Somany Ceramics

• Maintained ‘Buy’ with target price of Rs 610; indicating a potential upside of 67 percent from last regular trade.
• Weak Q2FY19 driven mainly by weak volume growth.
• Remain positive on growth outlook/pricing/profitability.
• Think worst of price correction in tiles is now behind.

Nomura on AIA Engineering

• Maintained Neutral; Cut target price to Rs 1,945 from Rs 1,955.
• Q2FY19 witnessed strong volume growth.
• Margins to improve as volume picks up.
• Stock rally appears to price in the growth; valuations expensive.

• Nifty October Futures ended at 10413, premium of 33 points.
• Nifty November open interest down 0.2 percent; Nifty Bank November open interest up 7.1 percent.
• Maximum open interest for November series at 10,700 Call (open interest at 24.7 lakh shares).
• Maximum open interest for November series at 10,000 Put (open interest at 50.8 lakh shares).

Bulk Deals

• 8K Miles Software Services: IFCI sold 14.1 lakh shares (4.61 percent) at Rs 67.89 each

Trading Tweaks

• Vakrangee to move into ASM framework
• DFM Foods record date for share split from Rs 10 to Rs 2
• Mishtann Foods record date for share split from Rs 10 to Re 1
• Laxmi Machine Works buyback starts
• Dhanlaxmi Bank price band revised to 10 percent
• Bombay Dyeing & Manufacturing Company price band revised to 5 percent
• Texmo Pipes and Products price band revised to 5 percent
• STI India price band revised to 5 percent

• Hindustan Petroleum Corporation will shut its crude unit in Mumbai refinery in January-March 2019 for 10 days. The company will take shut downs at both Mumbai and Vizag refinery in financial year starting from April 2019 for Euro 6 Hookups. The state-run refiner may consider importing Iran oil if U.S. grants waivers. The company also plans to merge Mangalore Refinery and Petrochemicals with self under integration plan. The deal will take place in six months after board approvals. (Bloomberg News)
• Indraprastha Gas: Supreme Court suggested the company to take over the supply of natural gas in Gurugram from Haryana City Gas Distribution Ltd. as an ongoing concern so that the entire dispute can be resolved amicably. Deloitte Haskins and Sells LLP has been appointed to submit the valuation within four weeks from today or by November 30. Next hearing is on December 6.
• Goodyear India will be shutting down its manufacturing plant in NCR and the boiler operations of the plant from Nov. 4 to Nov. 10 in response to Environment Pollution Authority’s public notice for all industrials regarding pollution control.
• Deepak Nitrite commenced operations at its phenol and acetone plant. The plant has the capacity to manufacture 200,000 MTPA of phenol and 120,000 MTPA of its co-product acetone.
• Inox Leisure board approved issuing 64 lakh shares equity shares on a preferential basis to its promoter Gujarat Fluorochemicals at a floor price Rs 241.71 per share.
• Reliance Industries and its four arms announced an open offer in acquisition of up to 2.88 crore shares, representing 25.64 percent of total voting capital of GTPL Hathway at Rs 82.65 per share aggregating to Rs 238.4 crore.
• Triveni Turbine board approves share buyback proposal of 66.7 lakh shares representing 2.02 percent of the paid-up equity share capital at Rs 150 per share, aggregating to Rs 100 crore.
• Tata Consultancy Services acquired London-based digital design studio ‘W12 Studios’. This deal will strengthen digital and creative design capabilities and will be part of TCS Interactive division, the company said.
• Aarti Industries board approved raising capital by way of equity/debentures to the tune of Rs 750 crore.
• Daiichi seeks India court stay on Fortis Healthcare: Bloomberg News
• Aegis Logistics statutory auditors—P. D. Kunte & Co. resigned stating they are merging professional practice with another firm of chartered accountants ‘CNK & Associates LLP’ on Oct. 31. The board meeting for the financial results are scheduled for Nov. 5. On this day new statutory auditors will also be chosen.
• NBCC India: High Court cleared three out of seven developments in Delhi: Bloomberg News
• Network18 Media and Investments gets NCLT nod for merger of 13 arms with itself.

Here’s the key scheduled event to come on Friday:

• The final U.S. jobs report before next Tuesday’s congressional elections may show that hiring improved and that the unemployment rate held at a 48-year low.