Nifty Media and Nifty IT indices were top gainers, rising 1.96 per cent and 1.41 per cent, respectively.Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended in the positive territory for the third day on Tuesday, led by buying in IT stocks. BSE Sensex ended 113 points or 0.28 per cent up at 40,544, while the broader Nifty 50 index finished just below 11,900, at 11,896. HCL Tech was the top Sensex gainer, up 4.19 per cent, followed by Tech Mahindra, Asian Paints, Bharti Airtel, HDFC Bank, Infosys, TCS and Nestle India, among others. On the contrary, ONGC was the worst-performing stock on BSE Sensex. Power Grid Corporation of India, NTPC, Reliance Industries Ltd (RIL) and HUL were among other losers. The trend among sectoral indices was largely positive. Nifty Media and Nifty IT indices were top gainers, rising 1.96 per cent and 1.41 per cent, respectively.
Highlights
The failed delisting of Anil Agarwal’s Vedanta Ltd has narrowed the refinancing options for its parent company Vedanta Resources, raising risks over the company's ability to sustainably service its debt beyond the next 12 months, said rating agency S&P Global. On Tuesday, S&P Global affirmed its ‘B-’ long-term issuer credit rating on Vedanta Resources and the 'B-' long-term issue rating on the senior unsecured bonds. The negative outlook on Vedanta Resources indicates that S&P Global could downgrade the firm if it is unable to lower refinancing risk by improving funding access and service its debt sustainably.
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BSE Sensex ended 113 points or 0.28 per cent up at 40,544, while the broader Nifty 50 index finished just below 11,900, at 11,896 on Tuesday
Hindustan Unilever HUL on Tuesday reported an 8.6 per cent rise in consolidated net profit at Rs 2,009 crore for the quarter ended September.
Cement companies stocks are in focus today, as ACC reported a 20.25 per cent increase in consolidated net profit to Rs 363.85 crore for the third quarter ended September 30. The company follows the January-December financial year and had posted a profit of Rs 302.56 crore in the same quarter a year ago. The stock has hit a fresh 52-week high of Rs 1,622 apiece, rising 3.8 per cent from the previous close.
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ESFB will see its profitability erode in FY21 on account of significant increase in credit cost and deceleration in growth, recovery in return ratios will ensue from FY22 as return to normalization begins. Strong capital buffer lends comfort on liquidity and growth fronts, and represents a substantial cushion to absorb even a worst-case credit shock. On post-money basis, the IPO has been priced at 1.2x current P/BV which we believe is attractive considering the long-term growth and profitability potential of the SFB: YES Securities
After nearly six months since India initiated its strict nation-wide lockdown, economic activity is coming back to pre-covid levels. The number of coronavirus cases is down from its peak, hopes of a vaccine are stronger, and indicators like car sales and GST collections are pointing at a recovery. According to global brokerage and research firm CLSA, this makes a case for rejigging your stock portfolio and moving away from information technology and healthcare stocks towards banks, cement, and Larsen & Toubro as it says that economic normalisation could favour domestic plays.
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The pharma sector is expected to return better earnings traction for this quarter gaining from revival in domestic market and new product launches in US followed with recovery in some business segments. Promotional, marketing and travelling spends still continuing to be lower than the pre-covid levels companies are expected to deliver better EBITDA margins. Our coverage universe to report 5-12% top-line growth along with 18-20% EBITDA growth. We believe amid the large caps DRL, Aurobindo and Cipla could deliver strong earnings while Sun pharma speciality portfolio should deliver significant recovery along with better domestic growth support: Centrum Broking
While the Indian stock market underwent considerable volatility due to the impact of the COVID-19 pandemic, the recovery phase has opened up new avenues for investment. There are a variety of upcoming IPO opportunities available for the informed investor. One such opportunity that various investors are keeping a keen eye on is the new IPO listing for Equitas Small Finance Bank Ltd. While these Equitas Small Finance Bank Ltd IPO details can certainly help you make the best investment decision going forward, the first step towards prudent investment is to align yourself with the right platform: Motilal Oswal Financial Services
We maintain REDUCE on L&T Tech (LTTS), as valuations more than adequately factor in the recovery curve. 2Q print was slightly ahead of estimates, and the growth rebound (despite 3Q furlough uncertainty) is supported by a pick-up in deal activity (deal pipeline and wins higher by ~16% over the previous quarter). While LTTS has a strong pedigree in ER&D with a well-diversified service portfolio, factors such as business cyclicality, higher discretionary nature, and slower pace of large deal conversion result in sequential volatility. The revised USD revenue guidance of -7% to -8% (-9% to -10% organic earlier) in FY21 implies +3.4 to 4.9% QoQ over 3Q-4Q and includes consolidation of Orchestra Tech (~2% QoQ in 3Q). Improvement in cash generation with a reduction in DSO (including unbilled) is positive. Our target price of Rs 1,585, is based on 18x Sep-22E EPS (DCF-implied at 18x and historical average at 19x).
~ HDFC Securities
The pharma sector is expected to return better earnings traction for this quarter gaining from revival in domestic market and new product launches in US followed with recovery in some business segments. Our coverage universe to report 5-12% top-line growth along with 18-20% EBITDA growth. We believe amid the large caps DRL, Aurobindo and Cipla could deliver strong earnings while Sun pharma speciality portfolio should deliver significant recovery along with better domestic growth support. Lupin also should deliver better earnings backed by gAlbuterol launch. Biocon we expect to show strong traction with better market share and semglee launch. API segment expected to sustain the better traction backed by strong volumes, Aarti Drugs and Granules expected to report strong numbers. Domestic IPM we expect this quarter at 5-6% growth and most the companies around this again expect Abbott India to deliver strong growth followed by Pfizer and Sanofi.
~ Centrum
"Indian Indices Nifty and Sensex, up by 67 points (0.57%) and 273 points (0.68%) respectively. Indian Indices open higher despite the weak global market clues. Heavyweights like HDFCBANK (up 1.53%) and INFY (up 1.30%) are major contributors. Today S&P BSE Information Technology (up 1.69%), S&P BSE Telecom (up 3.84%) while S&P BSE OIL & GAS (down 0.78%), S&P BSE Energy (down 0.42%). We expect Indices to be volatile on back of global market clues. Global Market update - DOW Jones down by 410 points (up 1.44%) and NASDAQ down by 192 points (up 1.65%)," said Yash Gupta Equity Research Associate, Angel Broking.
At the upper price band of Rs. 33, ESFBL is available at a P/BV of 1.4x based on its book value of Rs. 24.1. Based on FY20 P/BV the issue seems fully priced while the outlook for FY21 is slightly weak given the ongoing interest waiver litigation filed in Supreme Court. In spite of short to medium term concerns, we expect these concerns to normalize by FY22E and so recommend Subscribe with a long-term perspective: Geojit Financial Services
Equitas Small Finance Bank IPO subscribed 15 per cent so far on the first day of bidding. The retail portion has been subscribed 34 per cent till noon.
S&P Global Ratings said today that HDFC Bank, which was a BBB-/Stable/A-3 rating from the agency, has sufficient financial headroom to withstand downside risks from tough operating conditions. "We expect HDFC Bank's growth and earnings to significantly outperform peers'. The bank's loan book grew a robust 16% year-on-year in the first half of fiscal 2021 driven by wholesale loans. HDFC Bank is likely to grow faster than the industry by tapping underserved retail and small and midsize enterprise borrowers in semi-urban and rural areas and by increasing its share in working capital loans of high-rated corporates. We anticipate the bank's domestic market share will continue to increase, crossing 10% in the coming quarters. Its loan and deposit market share was 9.7% and 8.2%, respectively, as of March 31, 2020," S&P Global said.
Britannia Industries share price plunged 5.5 per cent to Rs 3,567.30 apiece on BSE, even as the company reported a 22.96 per cent increase in consolidated net profit to Rs 495.20 crore in the July-September quarter.
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Information Technology giant Wipro’s equity share buyback could be an unmissable opportunity for retail investors. Brokerage and research firm ICICI Direct says that the Rs 9,500-crore buyback announced by the IT firm is an arbitrage opportunity for investors who hold Wipro shares worth up to Rs 2 lakh as on the record date for the buyback. The offer, expected to be completed by December this year, will likely have 15% reserved for retail investors, as per SEBI guidelines. “In this regard, we advise our clients to tender shares in the buyback, especially those clients who hold up to 500 shares,” analysts at ICICI Direct said.
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Nafisa watched her baby’s life drain away. She and her husband struggled to make even 1 rupee (1 cent) a day from their tailoring business after India went into a Covid-19 lockdown in March. They often have nothing to eat. Nafisa was breastfeeding little Aaris, and with hardly any food for herself, she simply couldn’t produce enough milk. He grew weak, and his skin yellowed with jaundice. Hungry and in pain, he sobbed and howled. He died in his mother’s arms just a few weeks into the lockdown, at four months old.
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Gold prices in India fell for the second day on Tuesday as the dollar index has rebounded after two back to back sessions of sharp depreciation, according to analysts. On MCX, gold December futures were trading Rs 117 or 0.23 per cent down at Rs 50,570 per 10 gram. While silver December futures were ruling at Rs 62,000 per kg, down Rs 95 or 0.15 per cent on the multi-commodity exchange.
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Overall global sentiments remain fragile as investors await further cues on the stimulus package. Therefore, momentum in the rupee could also be trapped within its present narrow-range of 73.00-73.50 levels. If the pair breaks 73.50 crucial levels, rupee can move towards 73.80-74.20 levels. Broadly, until the pair breaks 74.50, every uptick shall be taken as selling opportunity and meanwhile downticks near 73.00-73.20 levels shall be utilized for buying near term payments: Amit Pabari, managing director, CR Forex Advisors
Larsen & Toubro’s (L&T) stocks gained 2.96% on Tuesday morning to trade at Rs 929.8 per share, as investors reacted to the news of L&T being the lowest bidder to build the largest segment package C4 of upcoming Mumbai-Ahmedabad High Speed Rail. The Engineering and Construction major could be all set to win one of the largest civil construction projects. “Financial bids for the design and construction of 237 km length of the viaduct for 508 km of Mumbai- Ahmedabad High-Speed Rail corridor were opened today and Larsen & Toubro Ltd is the lowest bidder,” said National High Speed Rail Corporation in a release on Monday.
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The index has good support at 11650 and until we do not break that, we are in positive territory. The resistance on the upside is at 12050. If we are unable to move past either level convincingly, we would be range-bound and trading in this zone should be avoided.Stocks that look interesting for an up move include Axis Bank, HDFC Bank and Tata Steel: Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
MCX gold opened with a weak undertone as the dollar index has rebounded after two back to back sessions on sharp depreciation. Investors have turned focus on stimulus developments in the US which might get passed before election. The safe haven demand has been steady amid The upcoming US presidential election, uncertainties over Brexit trade talks and rising COVID-19 cases. We recommend to stay invested in the bullion commodities: Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers
TCS (Tata Consultancy Services) shares gained over one per cent to trade at Rs 2,749.50 apiece, after the IT giant announced the launch of TCS Workforce Analytics, an AI-based unified system of engagement, insights and foresight for employees, managers and CXOs, designed to enhance productivity and workforce experience.
Check prices: TCS
In early deals on Tuesday, Bharti Airtel share price was up nearly one per cent and was trading at Rs 401.80 apiece on BSE.
Check prices: Bharti Airtel
Reliance Industries Ltd shares gained half a per cent to Rs 2,193 after the company announced to receive the subscription amount of Rs 1,837.50 crore from TPG Asia VII SF Pte. Ltd. (TPG).
Check prices: RIL
BSE Sensex opened flat with negative bias to trade at 40,419, while the broader Nifty 50 index was ruling at 11,865, down 7 points in early trade on Tuesday.
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The Nifty is expected to trade between 11500 and 12000 amid high volatility. Sell Nifty 11700 Put (October 22 expiry) in the range of Rs 30-32 Target: Rs 16-6, Stop loss: Rs 46: ICICI Direct Research
Nifty Open Interest Put Call ratio rose to 1.35 levels from 1.31 levels. Amongst the Nifty options (22-October), Put writing was seen 11800 levels, Indicating 11800 level may act as a strong support going forward. On the higher side, resistance is seen in the vicinity of 11950-12000 level where Calls have been written: HDFC Securities
BSE Sensex jumped over 400 points to trade at 40,842, while the broader Nifty 50 index was above 11,850 and was ruling at 11,859 in the pre-opening session on Tuesday.
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ACC reported a 20.25 per cent increase in consolidated net profit to Rs 363.85 crore for the third quarter ended September 30.RRVL, a subsidiary of RIL, received the subscription amount of Rs 1,837.50 cr from TPG Asia VII SF Pte. Ltd. (TPG)Wipro announced that it has won an Application Management (AMS) and Services Integration & Management (SIAM) contract from Fortum.
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On Monday, foreign institutional investors (FIIs) lapped up shares worth Rs 1,656.78 crore, whereas domestic institutional investors (DIIs) offloaded shares worth Rs 1,621.73 crore on a net basis in the capital market, according to the provisional data available on the NSE.
The market is likely to be in a consolidation mode. Overall the technical setup also suggests bounce may be seen but multiple hurdle and supply pressure at higher zones could restrict Nifty’s upside momentum. Now, Nifty has to hold above 11800 to witness an up move towards 12000 while support exists at 11750-11650 levels: Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
Oil prices slipped for a fourth straight day on Tuesday on worries about a resurgence of coronavirus cases globally stifling a promising recovery in fuel demand, while growing output from Libya adds to plentiful supply in the market. Brent crude LCOc1 futures fell 30 cents, or 0.7%, to $42.32 a barrel by 0149 GMT, after falling 31 cents on Monday. U.S. West Texas Intermediate (WTI) crude CLc1 futures slid 26 cents, or 0.6%, to $40.57 a barrel, after losing 5 cents on Monday. (Reuters)
Post the hiccup seen in the last week, the Nifty is back to the safer zone and the immediate support base has now shifted higher at 11780-11820. On the higher side, the resistance is seen around the 12000 mark and once this is taken out, our markets would again gear for the next leg of the rally. Traders are advised to trade with a positive bias and look for such sectors which are in momentum and are providing good trading opportunities: Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking)
The short term trend of Nifty continues to be positive. There is a possibility of further 1-2 day's of upmove before showing minor downward correction from the highs. The upper 11950-12000 is going to be an overhead resistance for the short term. Immediate support is placed at 11780: Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Domestic benchmark indices clocked the second day of gains on Monday as equity markets followed their global peers and moved higher. S&P BSE Sensex ended Monday’s trading session 448.62 points or 1.12% higher while the 50-stock Nifty 110 points to close at 11,873 mark. “A small body of negative candle was formed with gap up opening with long lower shadow and the opening upside gap remains unfilled. Technically, this pattern indicates a continuation of upside bounce in the market amidst a range movement,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that unless Nifty crosses 12,025 levels, profit booking can not be ruled out from highs.
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The Rs 518-crore Equitas Small Finance Bank initial public offer (IPO) will open for subscription on Tuesday, October 20, 2020. The company has fixed a price band of Rs 32-33 per share and the issue will close for subscription on October 22. The total issue size includes an offer for sale (OFS) of up to 7.20 crore equity shares by promoter Equitas Holdings Ltd. and fresh issue of up to 8.5 crore equity shares at Rs 33 per share of which Rs 1 crore is reserved for employee portion and Rs 51 crore reserved for EHL shareholder portion.
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In the overnight trade on Wall Street, US stocks ended lower. The Dow Jones Industrial Average fell 1.44 per cent, the S&P 500 lost 1.63 per cent and the Nasdaq Composite 1.65 per cent.
In the early trade, Asian stock markets were trading lower. Japan’s Nikkei 225 declined 0.34 per cent while the Topix index also shed 0.44 per cent. South Korea’s Kospi was 0.56 per cent lower