MARKETS LIVE: Nifty hits record high, scales 10,200 for first time ever
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SI Reporter |
New Delhi
Last Updated at October 16, 2017 10:04 IST
The Nifty50 hit its fresh record high on Monday with the index scaling past 10,200 for first time ever as Reliance Industries touched its fresh peak of Rs 891 after the company on Friday sprang a surprise by posting a profit of Rs 1,443 crore at the operating level.
Asian markets advancing to a decade high also contributed to the gains.
Investors now await the wholesale price index (WPI)-based inflation for September due during market hours later today.
Meanwhile, over 60 companies are scheduled to report their September quarter earnings over the week. The major ones include Wipro, Bajaj Finance, Bajaj Finserv, Colgate Palmolive, DHFL, Federal Bank, ACC, Axis Bank, Bajaj Auto, and Ultratech Cement.
10:04 AM Buzzing stock
Reliance Industries (RIL) hit a new high of Rs 890, up 1.6% on the BSE in early morning trade, after the company reported a 12.5% increase consolidated net profit at Rs 8,109 crore for the second-quarter ended September 2017 (Q2FY18) on back of higher margins from its core refining and petrochemical businesses. READ MORE DETAILS
9:46 AM
Wipro top loser ahead of Q2
Wipro shed nearly 2% to Rs 287 and was the top loser ahead of its September quarter earnings due on Tuesday. The company is expected to report 2.2% dollar revenue growth, while constant currency (CC) growth is seen at 1.2% QoQ, says Prabhudas Lilladher.
9:40 AM
INTERVIEW OF THE DAY
Given the strong growth in Asia and easy monetary stance taken by central banks other than the US Federal Reserve (US Fed), overseas investors will soon start re-investing in risky assets, says ABHIRAM ELESWARAPU, head of equity research, BNP Paribas Securities India.
READ FULL INTERVIEW
Abhiram Eleswarapu, Head of equity research, BNP Paribas Securities India
9:35 AM
Emkay Global on RIL Q2
We see less room for upgrade in our JIO TP (Rs125), as for FY19 we have already assumed ARPU of Rs163/month with active subscriber base of 180mn against current ARPU of Rs156/month with 131mn active subscribers. Upgrade can materialise going forward if the cost structure remains leaner than our estimates (like in Q2FY18). Moreover, recent rally in the stock (~10% in 10 days) has largely captured most of the positives from JIO’s performance. Thus, we maintain our HOLD rating with target price of Rs 843
9:34 AM
Equinomics view on IndusInd-Bharat Financial Inclusion (BFI) deal
IndusInd Bank has formally announced acquisition of Bharat Financial Inclusion. (BFI). The valuation of this acquisition is at 5.4 times BFI’s adjusted book value as on March 31, 2017 and 53 times its net profit in FY2017. We believe that such huge valuation for a microfinance company could eventually trigger further consolidation of Old Private Sector Banks (OPSBs) like South Indian Bank. These banks have much bigger business sizes, have a successful history of 8 decades to hundred years and also have access to cheap public deposits. They also have diversified lending portfolios. Most importantly, they trade at valuation in the range of 1.2x to 2.5x their adjusted book values.
Some of the new large private banks are trading at 4x to 5x their book values. Till now they have been growing their business by around 35% yoy. However, the industry credit growth is now at poor single digit at around 7%. In our view, for some of these large private banks, it is going to be very difficult to maintain such high credit growth in the future and hence, it may be difficult to command such high valuation (4x to 5x adjusted book values) in the markets. Therefore, considering these two developments, we believe that the consolidation which started 2 decades in the OPSB space would get renewed thrust going forward. Hence, we continue to suggest our clients to focus on the OPSB segment for investments.
9:29 AM Sectoral trend
All sectoral indices on NSE were trading in green.
Source: NSE
9:26 AM Sensex heatmap at open
Source: BSE
9:24 AM Nifty opens at record high
At 9:20 am, the S&P BSE Sensex was trading at 32,648, up 215 points, while the broader Nifty50 was ruling at 10,230, up 62 points. The 50-share index hit an intraday high of 10,234, its fresh lifetime peak.
9:12 AM
Technical calls by Angel Broking
Radico Khaitan
View: Bullish
Last Close: Rs 187.90
9:10 AM
Technical calls by Prabhudas Lilladher
BUY MASTEK
CMP: Rs 332.40
TARGET: Rs 375
STOP LOSS: Rs 310
9:09 AM
Pre-open trade
At 9:05 am, the S&P BSE Sensex was trading at 32488, up 55 points, while the broader Nifty50 was ruling at 10,167, up 71 points.
9:06 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Mon, October 16 2017. 10:00 IST
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