India’s wholesale inflation rose to 1.32% in September, a seven-month high. In the month of August the inflation rate was at 0.16%.Share Market News Today | Sensex, Nifty, Share Prices LIVE: BSE Sensex and Nifty 50 were trading over 1 per cent lower in Thursday’s session. S&P BSE Sensex was down over 550 points down and was hovering near 40,250, while the broader Nifty 50 index was down 144 points and was trading at 11,827. Infosys shares surged close to 4% on opening but soon slipped but remained in the green. Tata Steel and ONGC were the other top gainers. ICICI Bank, Bajaj Finance, Tech Mahindra, TCS, and Kotak Mahindra Bank were the top drags. Midcap and Smallcap indices were up with gains, outperforming the benchmarks.
India’s wholesale inflation rose to 1.32% in September, a seven-month high. In the month of August the inflation rate was at 0.16%. Prices of food items rose at a rate of 6.92% in September. “The build up in wholesale price inflation can be ascribed to considerable high inflation in food articles led by vegetables (due to crop damages and high transportation cost) and minerals within the primary articles,” said Care Ratings in a report. In the coming months, wholesale prices are likely to witness an uptick in the improving pricing power of the manufacturers as lockdown restrictions get eased.
Highlights
Sensex and Nifty could be on their way to break their 10-day rally as the plummeted close to 1% each. Nifty was below the 11,900 mark. IT stocks were the biggest drags.
“Indian Indices Nifty and Sensex, down by 72 points (0.60%) and 288 points (0.72%) respectively. Indian Indices open negative on back negative global market clues but seen selling pressure in heavy weights during the 1st half of the day. Today S&P BSE Consumer Discretionary Goods & Services (up 0.45%), S&P BSE METAL (up 0.50%) while S&P BSE Information Technology (down 2.27%), S&P BSE Telecom (down 2.15%). We expect the market to trade under pressure. Global Market update - DOW Jones down by 165 points (down 0.58%) and NASDAQ down by 95 points (down 0.80%)," said Yash Gupta - Equity Research Associate, Angel Broking.
Today, IT index turned red despite strong Q2 result from Infosys indicates that investors are comparing risk-return trade-off on the back of elevated valuation. We expect technology demand to remain resilient in the medium term as enterprises accelerate their digital transformation programs. We also expect Indian IT industry to continue gaining market share from current 18%-20% of around $1 trillion global IT spending market: Suyog Kulkarni, Senior Research Analyst - IT services, Media and Internet at Reliance Securities
Adding to the list of initial public offerings (IPO) in recent months, Equity Small Finance Bank today announced the launch of its public issue, which will open for subscription on October 20. At a price band of Rs 32-33 per share the issue size translates to Rs 518 crore, at the upper end. The issue includes a fresh issue of Rs 280 crore and an offer for sale for the remaining. The promoters, Equitas Holdings Limited will be selling 7.2 crore equity shares. Equitas Small Finance Bank, will be the ninth IPO to enter the primary market in recent months. So far all the public issues have been oversubscribed by retail investors.
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The nation remembers its 11th President, Dr. APJ Abdul Kalam in many forms – missile man, space scientist, nuclearization leader and people’s President. But one common trait which runs through all his roles was his unflinching optimism and devotion to being productive for the nation.
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Sensex was trading down by over 250 points at 12 PM, IT majors like Tech Mahindra, HCL Tech, TCS, Infosys were all trading with losses. Relaince Industries too was down over 1%.
Mukesh Ambani-controlled Reliance Industries Ltd on Thursday informed that it has received Rs 5,550 crore from global investment firm KKR for its retail business, Reliance Retail Ventures Ltd (RRVL). RIL shares were trading 0.71 per cent lower at Rs 2,268.15 apiece, as compared to a 0.45 per cent fall in the S&P BSE Sensex.
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Asian stocks followed Wall Street lower on Thursday as hopes US leaders will agree on a new economic stimulus before the Nov 3 presidential election faded. Benchmarks in Shanghai, Tokyo and Hong Kong declined. Sydney advanced. In Seoul, the company that manages boy band BTS made its market debut amid criticism by Chinese internet users after the group’s leader thanked Korean War veterans for their sacrifices.
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Rakesh Jhunjhunwala’s favourite stock Titan Company gained 1.38 per cent from day’s low to Rs 1,229 apiece on BSE, after the company released a shareholding pattern for the period ended September 30, 2020. Earlier in the morning, Titan share price fell nearly 1 per cent in the opening deals. According to the data available with BSE, the big bull’s wife Rekha Jhunjhunwala has sold 50,000 shares of Titan Company in the July-September quarter of the current fiscal.
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COMEX gold trades modestly lower near $1900/oz after yesterday’s 0.7% gain. Gold bounced back once again after taking support near the $1880/oz level but is struggling to build on the momentum. Gold trades weaker weighed down by stable US dollar and uncertainty about US stimulus. ETF inflows show buying interest in gold however pace was modest. Gold may witness choppy trade as market players continue to assess development relating to US stimulus, Brexit and rising virus cases however we expect buying interest to emerge at lower levels as uncertainty about US economy may limit upside in US dollar: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Brokerage and research firm Motilal Oswal completed the equity share buyback of 19.9 lakh equity shares worth Rs 120 crore. The average price at which shares were bought was Rs 630 per share. The highest price at which shares were bought was Rs 650 per share.
Shares of Information Technology (IT) giant Infosys opened nearly 4% higher on Thursday but soon erased all gains traded flat at Rs 1,130 per share. In the July-September quarter, Infosys posted a 20.5% on-year rise in net profit to Rs 4,845 crore. The surge in profits was aided by large deals that helped revenue jump 8.6% on year to Rs 24,570 crore. Infosys said that its digital and cloud capabilities combined with intense client relevance is helping it achieve differentiated results. Overall revenue growth was at 2.2% on year and 25.4% growth was registered in the digital offerings.
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Likhitha Infrastructure share price jumped 8.4 per cent on the market debut day as the stock got listed at Rs 130.10 on BSE, a premium of Rs 10.10 on the upper band of the issue at Rs 116-120 per equity. On NSE, Likhitha Infrastructure shares were listed at Rs 130, an 8.3 per cent premium over IPO price. However, minutes after the listing, the premium of the oil and gas pipeline infrastructure service provider fell to 4.17 per cent and the stock was trading at Rs 125 apiece. LIVE PRICES
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"The Nifty has opened this morning with less clarity in it's intra day direction. While the larger trend remains positive, the intra day trend seems to be a little confusing. We would need to get past 12030-12040 for an intra day move up and a break of 11800 would signal a move down. Until then, we could expect some rangebound movements with a positive bias," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
BSE Midcap and Smallcap indices were outperforming the benchmark Sensex, which was trading with losses. Similarly, Nifty Midcap 50 and Nifty Smallcap 50 too were surging higher while the benchmark was down with losses.
S&P BSE Sensex opened flat on Thursday and was moving between gains and losses. Nifty 50 was still shy of 12,000 mark. Infosys was up 4% while Inox shares surged 6% on opening.
Sensex gained to move past the 41,000 mark and Nifty moved past the 12,000 mark in the pre-opening session on Thursday.
After showing a consolidation type of movement in the last couple of sessions, Nifty witnessed sharp intraday weakness and also an excellent upside recovery on Wednesday and finally closed the day higher by 36 points. We observed a formation of small positive candle with long lower shadow, which indicates a sharp intraday upside bounce, after a steep decline during the early trade on Wednesday. This market could be a cheering factor for bulls to make a comeback, after a short pause in the market. But, the overall market breadth continued with weak trend and broad market indices like mid and small cap segments have failed to show any reasonable upmove.
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Benchmark indices gained during the pre-open session on Thursday, looking to beat the weak global cues. S&P BSE Sensex was up over 300 points while Nifty 50 was above the 12,000 mark.
Infosys: Infosys posted better-than-expected earnings in the second quarter. Net profits were up 14.4 per cent sequentially at Rs 4,845 crore while operating income rose 16.1 per cent to Rs 6,228 crore.Titan Company: Big bull of market Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala sold 50,000 shares of Titan Company in the quarter ending September 30, according to a latest BSE filing.
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Indian markets could open flat despite largely negative Asian markets today and negative US markets on Wednesday. U.S. stock benchmarks extended their losing streak to a second day in a row Wednesday, as Congress and the White House wrangled over further pandemic aid and big banks kicked off third-quarter corporate earnings season with a cautious tone. Investors seemed glum over dimming stimulus hopes after Treasury Secretary Steven Mnuchin said Wednesday that it was unlikely a stimulus bill would pass before the election.
~ HDFC Securities
On the options front (October 15, 2020 expiry), Nifty put option strikes added writing positions as the index trended higher.
Nifty PCR stood at 1.42x vs 1.4x
FII’s index future long/short ratio stood at 1.9x vs 2.7x
FIIs were net buyers in the cash market segment to the tune of Rs 822 crore
~IIFL Securities
Tata Group is in talks to tie up with Indian online groceries unicorn Big Basket, as the conglomerate attempts to catch up with rivals, including Amazon and Mukesh Ambani’s rapidly expanding retail empire, the Financial Times reported on Wednesday. Tata and Big Basket would make a decision on the deal by the end of October, FT reported, citing a person close to discussions. The newspaper wrote that another person with knowledge of the potential deal described it as a “strategic” relationship, with the conglomerate potentially acquiring a 20% stake and two board seats.
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Following a rally of up to 7.4 per cent in 10 days, BSE Sensex and Nifty 50 look set to carry this momentum for the 11th trading session on Thursday. In the previous session, headline indices recouped all the intraday losses and ended nearly half a per cent higher, maintaining the pre-covid-19 levels.
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India’s share markets are now outperforming emerging markets, led by strong policy traction, corporate resilience and an attractive starting point of valuations, said global investment bank Morgan Stanley in a recent report. S&P BSE Sensex and NSE Nifty 50 have so far jumped over 37% each since April, which is when Morgan Stanley said the outperformance over EMs began. However, the report’s authors Ridham Desai and Sheela Rathi argued that for this outperformance to be sustained, India needs to continue to deliver policy that lifts India’s potential growth in the eyes of market participants.
Here's how Morgan Stanley's portfolio is shaping up to benefit from these gains
India has yet again emerged as a preferred choice for foreign portfolio investors (FPIs), with net inflows into equities touching $3.07 billion between March and so far in October. The inflows are in stark contrast to broad-based equity sell-off that other emerging markets (EMs) continue to witness.
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"We observe a formation of small positive candle with long lower shadow, which indicate a sharp intraday upside bounce, after a steep decline of early part of Wednesday. This market could be a cheering factor for bulls to make a comeback, after a short pause in the market. But, the overall market breadth continued with weak trend and broad market indices like mid and small cap segments have failed to show any reasonable upmove," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
"Infosys reported numbers which were ahead of street estimates. Company reported a 6.12% qoq growth in revenues to USD 3,312mn driven by digital which grew by 12.9% qoq. In rupee terms revenue grew by 3.8% qoq to ₹ 24,570 crore while gross profits grew by 10.5% qoq to ₹8,799 crore. Gross margins expanded by 217bps qoq to 35.8% despite rupee appreciation due to higher off-shoring and better utilization. Continued tight cost control in the form of reduced SG&A expenses led to a 268bps qoq expansion in operating margins to 25.35% while operating profits grew by 16.1% qoq to ₹6,228 crore. Net profit for the quarter grew by 14.5% qoq to ₹4,845 crore," said Jyoti Roy- DVP- Equity Strategist, Angel Broking.
Stocks of PVR and Inox will be in focus from today as cinema halls will now be allowed to operate under a set of SOPs that the government has issued. This will be for the first time since March that cinema halls are being allowed to operate.
India’s wholesale prices rose at a seven-month high rate of 1.32 per cent in the month of September, after rising 0.16 per cent in the previous month. It was the second straight increase in wholesale prices, and the strongest pace since February, as the economy gradually recovers from the pandemic shock. While vegetable prices surged 36.5 per cent, the prices of potato rose by 107.6 per cent in the month. Among the major groups, the prices of food items rose at the fastest rate of 6.92 per cent in the month, according to the Ministry of Commerce & Industry.
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