Markets to consolidate recent gains - HDFC Securities

U.S. stocks closed mixed on Tuesday with the Dow gaining at the expense of the tech-heavy Nasdaq as progress toward a vaccine and treatments for COVID-19 encouraged investors to book profits in the biggest pandemic-era winners.

Eli Lilly & Co.’s COVID-19 monoclonal antibody treatment called bamlanivimab was approved for emergency use by the U.S. Food and Drug Administration.

Rotation toward value stocks, sensitive to the economy’s performance, away from shares of fast-expanding companies that tend to thrive in times of sluggish economic growth was visible.

In other markets, Crude oil prices continued to rise and gold rebounded somewhat from yesterday's tumble.

U.S. labour market data showed 5.87 million people were hired in September, down slightly from 5.95 million in August. The number of job openings in September rose to 6.4 million from 6.35 million a month earlier, while job separations, including layoffs, slipped to 4.66 million from 4.69 million.

Many Asian and emerging markets continue to rise for the second consecutive session, as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy, which would help the heavily export-dependent economies.

Indian indices handsomely built on their recent gains in yesterday’s session. NSE nifty 50 index has closed in the green for the seven consecutive sessions.

Banking is the leader of the pack and many PSU banks joined the rally along with private sector banks, The banking index surged by a massive 4%. IT and Pharmaceuticals stocks corrected as we expected and wrote in this space yesterday.

MSCI index constituents’ changes are driving flows in to select stocks.

Markets are likely to open higher in line with higher Asian markets and positive global cues, and then consolidate its recent gains

Endurance Technologies Q2FY21 result review

Consolidated total income of the company was flat yoy at Rs 1777 crore in Q2FY21. Aftermarket sales degrew by 4.5%. EBITDA increased by 5.9% yoy to Rs 320 crore while EBITDA margins expanded by ~100bps to 18%. PAT fell by 1.1% yoy because the previous year Q2 results contained cumulative favourable impact of reduction in Indian income tax rates for two quarters. The Company’s total eligibility for incentives under the Maharashtra PSI scheme was increased by almost Rs 100 crore to Rs 470 crore.

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