Sensex, Nifty Post Their Worst Two-Day Fall In Nearly A Month

Indian equity benchmarks ended lower for the second day, posting their worst two-day decline in nearly a month.

The S&P BSE Sensex Index ended 0.77 percent lower at 35,199.80 and the NSE Nifty 50 Index ended at 10,600.05, down 0.53 percent.

Six out of 11 sectoral gauges compiled by National Stock Exchange advanced, led by the NSE Nifty Pharma Index’s 1.7 percent gain. On the flipside, NSE Nifty IT Index was the top sectoral loser, down 2.8 percent.

VRL Logistics

• Stock rose as much as 9.1 percent to Rs 314.80.
• Trading volume was almost five times its 20-day average.

Phillips Carbon

• Stock rose as much as 10.8 percent to Rs 228.60.
• Trading volume was four times its 20-day average.

Vodafone Idea

• Stock rose as much as 7.6 percent to Rs 45.55.
• Trading volume was more than double its 20-day average.

SpiceJet

• Stock rose as much as 7.4 percent to Rs 84.
• Trading volume was double its 20-day average.

Emerging-market equities look set to post double-digit returns next year after a tumultuous 2018 in which they tumbled into the bear market territory, Bloomberg reported quoting Goldman Sachs.

“With the U.S. economy likely to expand through 2020 and China managing its bumpy slowdown with bouts of stimulus, developing-nation shares will probably return 12 percent in dollar terms while assets as a whole will post modest gains in 2019,” Bloomberg reported quoting the brokerage's research report. (Click here to read the full story)

About 53.5 lakh shares of ICICI Bank changed hands in a block deal, according to Bloomberg data. Buyers and sellers were not known immediately.

Shares of Dewan Housing Finance Corporation Ltd. rose as much as 6 percent to Rs 238.80 after the company announced its quarterly results for the July-September period. Besides, the company's board also approved the debenture issue of worth Rs 10,000 crore.

Key earnings highlights (Q2, YoY)

• Net profit up 52 percent at Rs 438.7 crore.
• Revenue up 33.5 percent at 3,515.6 crore.
• Tax expense up 83 percent at Rs 194 crore.

European equities rallied along with U.S. futures, trimming losses after a slew of declines across assets on Tuesday.

Shares of Forbes & Co hit an upper circuit of 10 percent for the second day to trade at Rs 2,471.

“The company plans for a separate listing of Eureka Forbes Ltd., the water purification unit of publicly traded Forbes & Co., and sales of the commercial real estate will also be considered,” Bloomberg reported yesterday quoting its Executive Director Jai Mavani. (More details here)

Trading volume was four times its 20-day average, Bloomberg data showed. The stock rose 21 percent in the last five days.

Shares of the Bengaluru-based software developer fell as much as 4.6 percent to Rs 612.10, its lowest levels since June 06.

The stock is currently trading below 200-day moving average, Bloomberg data showed. The scrip rose 22.8 percent so far this year compared to a 4.5 percent advance in Sensex.

Kotak Mahindra Bank Ltd.'s Managing Director and CEO Uday Kotak welcomed the decisions taken at the Reserve Bank of India's recent board meeting, and said the outcomes will be positive for the economy, PTI reported.

“I am very happy that there are positive outcomes which ultimately help the economy. I am glad that the board had a debate and I respect the judgement of the board,” the newswire agency reported attributing to Kotak.

The government has no formal proposal for a relief package for the telecom sector, Bloomberg reported quoting Telecom Secretary Aruna Sundararajan.

Shares of the paintmakers rallied in today's trade on lower crude oil prices. The Brent crude fell over 6 percent yesterday at $62.53 per barrel on Tuesday, its lowest in nearly a year.

About 13 lakh shares of Ashok Leyland changed hands in a single block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the state-run lender rose as much as 2.1 percent to Rs 112.50.

Bank of Baroda agreed to sell a 4 percent stake in Clearing Corporation of India Ltd. to HDFC Bank at Rs 620 a share, with consideration aggregating to Rs 124 crore, according to its exchange filing. After the acquisition, HDFC Bank will increase its stake in CCIL to 9 percent from 5 percent.

• Indian equity benchmarks traded off day's low.
• The S&P BSE Sensex Index traded 0.78 percent lower at 35,198.04 and the NSE Nifty 50 Index traded at 10,589.70, down 0.63 percent.
• About 858 stocks declined and 795 shares advanced on NSE.

Adani Gas Ltd. received an approval from the Petroleum and Natural Gas Regulatory Board to expand its operations in 13 new Geographical Areas, according to its media statement on the exchanges.

Shares of Adani Gas hit an upper circuit of 20 percent to Rs 97.80. The stock rose over 28 percent since its listing.

Nifty’s 10,700 call option contract was among the most active option contracts on National Stock Exchange.

Premium on the contract fell 38.29 percent to Rs 50.60. Over 14.93 lakh shares were added to the open interest which stood at over 42.74 lakh shares.

Shares of the Mukesh Ambani-led company traded lower for the second day and fell as much as 2.7 percent, the most since Oct. 30, to Rs 1,107.05.

Reliance Industries traded at 16 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of the country’s largest power generator entered the oversold territory after the Relative Strength Index (RSI) fell below 30. The stock fell as much as 1.3 percent to Rs 147.15, its lowest since Nov. 09, 2016.

About 16 lakh shares changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Besides, is considering buying power plants run by indebted RattanIndia Power Ltd. and Jaiprakash Power Ventures Ltd. Bloomberg reported yesterday, quoting people familiar with the matter. (more details here).

About 17.5 lakh shares of South Indian Bank changed hands in a block deal, according to Bloomberg data. Buyers and sellers were not known immediately.

Shares of Minda Corp rose as much as 10.6 percent, the most since Oct. 17, to trade near a two-month high at Rs 145.

The company reduced its stake in its joint venture with Japan-based Furukawa Group from 51 percent to 25 percent.

Trading volume was 26.2 times its 30-day average, Bloomberg data showed. The stock traded at 18 times its estimated forward earnings per share for the coming year.

Shares of oil marketers rallied in today's trade after Brent crude fell over 6 percent yesterday at $62.53 per barrel on Tuesday, its lowest in nearly a year.

Shares of the drugmaker rose as much as 8.7 percent, the most in a year, to trade near a two-month high at Rs 2,655.

A court in U.S. ruling allowed the pharmaceutical company to sell a generic of Indivior Plc’s opioid treatment drug Suboxone, according to a Bloomberg report. (more detail here)

Trading volume was 19.9 times its 30-day average, Bloomberg data showed. The stock rose 10.2 percent so far this year. The scrip was the best performer on Nifty.

Indian equity benchmarks fell for the second day, following its Asian peers, after another tumble on Wall Street.

The S&P BSE Sensex Index fell as much as 0.39 percent to 35,336.77 and the NSE nifty 50 Index fell as much as 0.18 percent to 10,637.20.

The market breadth, however, was tilted in favour of buyers. Eight out of 11 sectoral gauges compiled by National Stock Exchange advanced, led by NSE Nifty Pharma Index's 1.6 percent gain. On the flipside, NSE Nifty IT index was the top sectoral loser, down 1.86 percent.

F&O Cues

• Nifty November futures closed trading at 10672, premium of 16 points.
• Nifty November open interest down 3 percent; Nifty Bank November open interest down 0.6 percent.
• Max open interest for November series at 10,800 Call option (open interest at 36 lakh shares).
• Max open interest for November series at 10,000 Put option (open interest at 41 lakh shares).

Stock In F&O Ban

• In Ban: Adani Power, Adani Enterprises, Jet Airways, PC Jeweller, DHFL
• New in Ban: DHFL

Put-Call Ratio

• Nifty PCR at 1.64 from 1.73.
• Nifty Bank PCR at 1.01 from 1.33.

On Dr. Reddy’s Laboratories

Credit Suisse

• Maintained ‘Underperform’, with a price target of Rs 2,100, implying a potential downside of 14.1 percent from the last regular trade.
• Expect immediate competition from Authorised generic and Mylan for Suboxone.
• So in a steady state, Suboxone should be six generic player market.
• Dr. Reddy’s received approval for generic of Diprivan; Excect $20 - 25 million sales.

Macquarie

• Maintained ‘Neutral’ with a price target of Rs 2,500, implying a potential upside of 2.3 percent from the last regular trade.
• Expect gSuboxone ‘at risk’ re-launch immediately.
• Probability of favourable verdict in the full trial on the ‘305 patent increases.
• Expect $50 - 60 million sales of Suboxone in the current financial year; $70 million in the next financial year.
• Mylan’s entry could be imminent.

BofA

• Maintained ‘Buy’ with a price target of Rs 2,989, implying a potential upside of 22.3 percent from the last regular trade.
• gSuboxone springs back to life as Dr Reddy’s wins ruling.
• PI ruling win has strong bearing on pending litigations.
• Competition from other firms can catch up and is a risk.
• See Rs 27 per share opportunity with three firms in fray.

More Calls

UBS on ONGC

• Maintained ‘Buy’ with a price target of Rs 240, implying a potential upside of 56.8 percent from the last regular trade.
• ONGC stock took a beating due to soaring crude, will it reverse with crude fall.
• OVL's consolidated profit during the first half of the current financial year was up almost nine time on a yearly basis on higher crude oil price.
• Share buyback, stable crude oil prices should improve investors' sentiments.

BofA on Jubilant Foodworks

• Maintained ‘Buy’ with a price target of Rs 1,600, implying a potential upside of 31.8 percent from the last regular trade.
• Strong showing likely to continue in the third quarter despite challenging base.
• New product launches; third quarter’s SSSG likely to be in high teens.
• See upside risk to our estimates after strong first half.

• Veto Switchgears and Cables to move into ASM Framework.
• Dolat Investments price band revised to 5 percent.

Fortis Healthcare

• UBS Asia acquired 1 crore shares or 1.93 percent equity at Rs 147.05 each.
• York Asian Opportunities Fund sold 1 crore shares or 1.93 percent equity at Rs 147.05 each.

• Dr. Reddy’s Laboratories: Indivior lost an appeals court ruling that opened the door for the company to begin sales of a generic version of the opiod treatment Suboxene Film. Dr. Reddy’s had received regulatory approval to sell a generic version of the drug before it was shut down by a federal judge who said it had to wait for a final decision in a patent-infringement case. The appeals court set aside an order that blocked Dr. Reddy’s and remanded the case to the trial court for further proceedings. (Bloomberg News)
• Bank of Baroda agreed to sell 4 percent stake in Clearing Corporation of India to HDFC Bank at Rs 620 per share, with consideration aggregating to Rs 124 crore. Post the acquisition, HDFC Bank will increase its stake in CCIL from 5 percent to 9 percent.
• Suzlon Energy completed sale of two arms to Canadian Solar. The total consideration received for both companies stood at Rs 54.53 crore.
• Minda Corporation reduced its stake in its joint venture with Japan based Furukawa Group from 51 percent to 25 percent.
• NBCC submitted expression of interest for resolution plan of Jaypee Infratech and the company has been provisionally shortlisted by resolution professional of Jaypee Infratech as prospective resolution applicant.
• NTPC signed an accord with seven electric vehicle aggregators. The company says accord is for developing charging infrastructure. (Bloomberg News).
• Dewan Housing Finance Corporation to announce its quarterly earnings for the July-September period.

• RBI’s relaxations to provide Rs 35,000 crore capital relief to government banks.
• Auto makers stare at worst festive sales in five years.
• EPFO data says job creation doubled in September.
• No end in sight for crypto sell-off as Bitcoin breaches $4,000.
• A $2 billion health empire run by four sisters makes a comeback.
• Goldman sees double-digit emerging-market stock returns in 2019.
• Rajasthan Elections: Can Vasundhara Raje overcome anti-incumbency?

• West Texas Intermediate crude stabilised at $53.53 a barrel after sliding 6.6 percent to the lowest since October 2017.
• Brent crude rose 1.25 percent lower at $63.31 a barrel. It slumped 6.4 percent yesterday, the lowest level in nearly a year.
• Gold fell 0.1 percent to $1,221.03 an ounce.

London Metal Exchange

• Aluminium ended 0.3 percent higher.
• Copper halted a five-day rally, down 1.2 percent.
• Zinc ended lower for the second day, down 1.88 percent
• Nickel ended lower for the second day, down 0.76 percent.
• Lead halted a tow-day rally, down 2.1 percent.
• Tin ended 1.02 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.2 percent to 10,650 as of 8:34 a.m.

Asian stocks are back in bear-market territory after another dive on Wall Street, where concerns have spread to the corporate-bond market. Equity benchmarks retreated across the region though U.S. futures edged higher.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.