India's sovereign bonds are set to gain for a fifth session after the central bank announced a plan to buyback bonds in its effort to support the market.

Traders will also be focusing on the Rs 10,800 crore of state bond sales in the session. Yield on the 10-year note that fell 6 basis points in the last session could see further decline. Dealers are expecting a range of 7.85-7.95 percent on the benchmark bond today.

In the currency market, implied opening from forwards suggest the pair may open at around 73.7490 a dollar. Most Asian currencies are trading in the green with the South Korean won up 0.5 percent. Traders expect some improvement in the rupee and a range of 73.50-74 in the day.

HSBC on Motherson Sumi

• Maintained ‘Buy’; cut price target to Rs 350 from Rs 400, implying a potential upside of 40 percent from the last regular trade.
• Cut earnings estimate on slower global and domestic market growth.
• Investors ignoring positives from potential acquisition, rupee depreciation and new emission norms.
• Stock price correction creates attractive entry point.

Jefferies on Indian Energy Exchange

• Maintained ‘Buy’ with a price target of Rs 2,050, implying a potential upside of 25 percent from the last regular trade.
• September quarter saw a double-digit volume growth of 18 percent.
• CERC order sets the tone for stable pricing.
• IEX to benefit from volume growth on stable pricing and cost base.

Brokerages On Indiabulls Housing Finance

JPMorgan

• Maintained ‘Overweight’ with a price target of Rs 1,600, implying a potential upside of 69 percent from the last regular trade.
• Another consistent quarterly earnings delivered.
• ALM is conservative and the company should be able to ride out current stress in money markets.
• Remains top pick in NBFC space.

Macquarie

• Maintained ‘Outperform’ with a price target of Rs 1,400, implying a potential upside of 48 percent from the last regular trade.
• September quarter was line. No concerns were seen on liquidity front.
• Growth to slow down as mgmt. has cut loan growth guidance for the current financial year to 20 percent.
• Think liquidity concerns are overdone; recent correction an opportunity to add.

CLSA

• Maintained ‘Buy’; cut price target to Rs 1,500 from Rs 1,700, implying a potential upside of 58 percent from the last regular trade.
• Steady, quality growth in September quarter.
• Liquidity high but growth to moderate.
• Cut earnings estimate by 3-5 percent to factor weaker topline.

Brokerages On IndusInd Bank

Macquarie

• Maintained ‘Outperform’; cut price target to Rs 1,975 from Rs 2,100, implying a potential upside of 21 percent from the last regular trade.
• Net interest margins are under pressure as liquidity tightens.
• Mgmt. confident of no incremental provision other than Rs 275 crore made in the July-September quarter.
• Cut price target to factor in 20 basis points rise in credit cost for IL&FS exposures and rising bond yields.

PhillipCapital

• Maintained ‘Buy’ with a price target of Rs 2,170, implying a potential upside of 33 percent from the last regular trade.
• Continue to report strong performance led by robust growth in advances.
• Lag impact of re‐pricing loan has been exerting pressure on NIM.
• Merger with Bharat financial to realise synergies in funding cost.

Deutsche Bank Research

• Maintained ‘Buy’ with a price target of Rs 2,150, implying a potential upside of 32 percent from the last regular trade.
• Strong growth; Earnings miss on higher provisions.
• IL&FS exposure provided; Asset quality steady otherwise.
• NIMs decline eight basis points on a sequential basis as deposit cost rise faster.

• Nifty October futures closed trading at 10,517, premium of five points.
• Nifty October open interest (OI) down 2.8 percent; Nifty Bank Oct OI up 1.2 percent.
• Max open interest for October series at 11,000 strike value call option (open interest at 48.5 lakh shares)
• Max open interest for October series at 10,000 Strike value put option (open interest at 34.8 lakh shares)

Insider Trades

• JSW Steel promoter group acquired 3.16 lakh shares from Oct. 10-11.
• Cox & Kings promoter acquired 56,400 shares on Oct. 11.
• Advanced Enzyme Technologies promoter group Atharva Green Ecotech LLP sold 55 lakh shares on Oct.12.

(As reported on Oct. 15)

Trading Tweaks

• Ashapura Intimate Fashion placed under ASM Framework
• Goa Carbon price band revised to 10 percent.
• State Trading Corporation of India price band revised to 10 percent.
• Mangalam Organics price band revised to 5 percent.