Traders' Diary: Index poised to test 11,700 on upside
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ACC net profit up 45% at Rs 303 crore in Sept quarter
Cement maker ACC Ltd on Tuesday reported a 44.66 per cent rise in consolidated net profit at Rs 302.56 crore for the third quarter ended September 30, 2019.
The company had posted a net profit of Rs 209.14 crore in the corresponding period of the previous fiscal, ACC said in a BSE filing.
Consolidated net sales stood at Rs 3,464.43 crore for the period under review as against Rs 3,363.96 crore for the same period year ago.
Podcast: Charts suggest good momentum rally ahead
JSW Group promoter repays Rs 1,200 crore debt
JSW Group promoter Sajjan Jindal has repaid Rs 1,200 crore of loans raised by pledging shares of JSW Steel and JSW Energy, the conglomerate said on Tuesday. Following the repayment, pledged shares of both the companies have been released by the lenders, JSW Group said. The pledged shares of both companies were worth Rs 2,500 crore.
Hero MotoCorp, Bajaj, Maruti, Escorts and Mahindra & Mahindra are looking more and more compelling on the valuation front. Only Escorts and M&M and Maruti are the leaders of segments. Large-caps may not outperform return wise, but at least in allocation you need to have something which represents the auto sector major.
Green shoots from US-China trade talks added positivity while outperformance in domestic auto stocks in expectation of festival demand further lifted the sentiment. FIIs are net buyers in the last two days given stability in global market. Start of Q2 results is mixed but some tailwinds on future earnings outlook will help the market to maintain the momentum.
- Vinod Nair, Head of Research, Geojit Financial Services
Bulls have been showing resilience and steadily nifty is heading up. We have remained contra bullish on the markets for some time. We continue our bullish stance on the index and believe the index is poised to test 11,700 zone on the upside. 11,100 seems to be the new base for the index and it’s important for the bulls to protect this region on the downside. Market breadth was evenly balanced. Metals can see decent bounce going forward.
- Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures
The on-going earnings season is likely to set the tone for the Indian markets as some of the heavyweights would be declaring their results this week. We expect that more than the earnings announcement, the outlook given by the management would hold importance especially for consumption driven companies. On the global front, market participants would keep a close watch on US-China trade talks along with movement in currency and crude oil prices.
An Indian irrigation firm has been cut to “selective default” by S&P Global Ratings, as more cracks emerge in the India offshore junk bond market. Jain Irrigation SystemsNSE 2.58 % Ltd. missed certain principal payments under its working capital facilities and S&P sees a “high likelihood” that the company would be classified a nonperforming asset by its bankers. A selective default means S&P believes a firm has defaulted on a specific issue but will meet its other obligations.
Do you think the sudden spike in retail inflation closer to RBI's 4% target will end the central bank's rate-cutting spree?
Indian stocks have the lowest dividend yield in Asia
Indian stocks are the least attractive in terms of dividend returns in Asia, Refinitiv data shows, which could prompt some investors to shy away from the country's equity markets. India's large and mid-cap stocks' forward dividend yield ratio stood at 1.7 per cent on Tuesday, the lowest in Asia, according to the data.
VA Tech Wabag down 14%; continues to decline for 11th consecutive session
Price as on 15 Oct, 2019 12:56 PM, Click on company names for their live prices.
Global stocks, pound rise on cautious Brexit deal hopes
Asian stocks and the pound gained on Tuesday as investors held out hope that Britain still had a chance of avoiding a messy exit from the European Union at key negotiations this week, Reuters reported. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1%. Australian shares were up 0.17%, while Japan's Nikkei stock index .N225 was up 1.86%.
OMCs trade in the green; IOC top gainer
OMCs were trading in the green in Tuesday's session with their sectoral index on BSE trading higher. Shares of Indian Oil Corporation (up 1.90 per cent), Bharat Petroleum Corporation (up 0.97 per cent), Castrol India (up 0.71 per cent) and Hindustan Petroleum Corporation (up 0.64 per cent) were trading with gains.
Adani Transmission gains 8% as it acquires arm of REC Transmission Projects
Price as on 15 Oct, 2019 11:57 AM, Click on company names for their live prices.
Telecom shares slip; GTPL Hathway plunges 9%
Telecom shares were trading with losses in Tuesday's afternoon session.
Shares of GTPL Hathway (down 9.11 per cent), Mahanagar Telephone Nigam (down 4.99 per cent), GTLNSE 0.00 % (down 4.82 per cent) and Tata Teleservices (Maharashtra) (down 4.00 per cent) were the top losers in the index.
GTL Infrastructure (down 3.77 per cent), Bharti Airtel (down 2.41 per cent), Sterlite Technologies (down 2.06 per cent) and Vodafone Idea (down 1.88 per cent) too were trading lower.
We are not immediately looking at all the beaten down stocks. We stay with the quality fundamental stocks, maybe in the insurance business. We continue to like them, any corrective downside in the insurance business particularly life insurance companies, is where our preference lies
- Deven R Choksey, MD, KR Choksey Investment Managers
Any upside towards 11,400 (Nifty) mark can be used to go short with a stop loss of 11,554. On the downside, the intermediate support for
the index has shifted to 11,280. A move below the same might result in some profit booking going ahead. Traders are advised to
remain stock specific and follow strict stop loss in case of long positions since the volatility is at its peak in recent times.
- IndiaNivesh Securities
IRCTC drops 1.5% after stellar debut on Monday
Shares of IRCTC dropped marginally on Tuesday, after logging 121.7 per cent gains on debut on Monday.
Price as on 15 Oct, 2019 10:33 AM, Click on company names for their live prices.
Cabinet to consider splitting GAIL; pipeline business not to be sold before 2022
Price as on 15 Oct, 2019 10:32 AM, Click on company names for their live prices.
Andhra Bank cuts MCLR by 10 basis points across tenors
Price as on 15 Oct, 2019 10:31 AM, Click on company names for their live prices.
ZEEL drops 3% as VTB Capital enforces certain securities rights
VTB Capital, an arm of the Russian financial services house VTB Group says it has enforced certain securities rights granted to the lenders to the promoters of Zee Entertainment in order to protect the interest of the lenders
YES Bank offloads 6.56% stake in Fortis Healthcare for a little over Rs 645 cr through an open market transaction
Price as on 15 Oct, 2019 09:33 AM, Click on company names for their live prices.
Lakshmi Vilas Bank, Syndicate Bank drop up to 2% on RBI penalty
The Reserve Bank has imposed a monetary penalty of Rs 1 crore on Lakshmi Vilas Bank and Rs 75 lakh on Syndicate Bank for violating asset classification and fraud detection norms.
Wipro edges higher ahead of Q2 results
The scrip rose 0.25 per cent to Rs 243.95. Analysts tracking the IT major have estimated a 3-4 per cent drop in sequential profit due to lower other income. They see revenue rising 1-2 per cent QoQ in constant currency (CC) terms, much in line with the company’s 0-2 per cent revenue guidance for the quarter. Margins may see some pressure due to wage hikes, they said.
HUL gains over 1% post Q2 results
Price as on 15 Oct, 2019 09:29 AM, Click on company names for their live prices.
Indiabulls Housing Finance drops 7% on Moody's rating cut
After falling over 7 per cent in early trade, the scrip was quoting 5.38 per cent lower at Rs 187.25 after the first 15 minutes of trade. Moody's has downgraded Indiabulls Housing Finance’s corporate family rating and the home financier’s foreign-currency senior secured rating to B2 from Ba2. Meanwhile, the NBFC will consult Sebi about its eligibility to buy back shares given the regulations on the ideal capital structure.
Pre-open session: Sensex gains 100 pts, Nifty above 11,350; rupee trades at 71.24 against dollar
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 22 points, or 0.19 per cent, higher at 11,357, indicating a positive start for Dalal Street.
Tech view: Nifty50 forms Doji candle
Nifty on Monday saw pressure around its 100-day moving average, which made it pare most of the day’s gains. The index eventually formed an indecisive 'Doji' candle on the daily chart. This was the second session when the index formed a higher high, but analysts said the 11,400 level is proving a tough barrier for the index to break.
Asian stocks gain ahead of Brexit summit
Asian stocks and Wall Street futures inched higher on Tuesday as some investors held out hope that Britain still had a chance to avoid a messy exit from the European Union at key negotiations this week. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.01 per cent. Japan's Nikkei rose 1.38 per cent.
US stocks ended lower
The Dow Jones Industrial Average index fell 29.23 points, or 0.11 per cent, to 26,787.36. The S&P500 index decreased 4.12 points, or 0.14 per cent, to 2,966.15. The Nasdaq Composite Index was down 8.39 points, or 0.10 per cent, to 8,048.65.
Oil prices extend recent losses
Oil prices dropped again on Tuesday after falling heavily in the previous session, as weak Chinese economic data for September added to lingering concerns about the feasibility of the US-China trade deal announced by President Trump late last week. Brent crude futures fell 30 cents, or 0.5 per cent, to $59.067 barrel.
Wipro Q2 nos today
Analysts tracking the IT major have estimated a 3-4 per cent drop in sequential profit due to lower other income. They see revenue rising 1-2 per cent QoQ in constant currency (CC) terms, much in line with the company’s 0-2 per cent revenue guidance for the quarter. Margins may see some pressure due to wage hikes, they said.
FIIs buy Rs 896 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 896 crore on Monday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 425 crore, data suggests.
Retail inflation print gives price scare
India’s wholesale inflation eased to 0.33% in September, its lowest in more than three years led by lower inflation in fuel and manufactured goods. The previous low for wholesale inflation as measured by the Wholesale Price Index (WPI) was 0.1% in June 2016. Retail inflation, meanwhile, inched closer to RBI's medium-term target of 4% in September for the first time in 14 months on higher food prices.
China wants more talks on trade deal
China wants to hold more talks this month to hammer out the details of the “phase one” trade deal touted by Donald Trump before Xi Jinping agrees to sign it, reports Bloomberg. Beijing may send a delegation led by Vice Premier Liu He, China’s top negotiator, to finalise a written deal that could be signed by the presidents at the Asia-Pacific Economic Cooperation summit next month in Chile.
India's trade numbers to be out today
India’s balance of trade numbers for September, which is scheduled to be released today (October 15). India's trade deficit narrowed to $13.45 billion in August from $17.92 billion in the same month last year and below market expectations of $13.60 billion.
Indian economy on shaky ground: Abhijit Banerjee
Indian-American Abhijit Banerjee, who on Monday won the 2019 Nobel for Economics, said Indian economy is on a shaky ground. The data currently available do not hold any assurance for the country's economic revival anytime soon, he stated. "In the last five-six years, at least we could witness some growth, but now that assurance is also gone," Banerjee told a news channel from the US. The 58-year-old bagged the coveted prize jointly with wife Esther Duflo and economist Michael Kremer for his "experimental approach to alleviating global poverty".
Private investment rate may decline: Kotak report
Private investment in the country may decline given the paucity of large industrial or infrastructure projects for the private sector, a Kotak report said on Monday. This despite a sharp cut in corporate tax announced by the government last month. The report cited a number of reasons for this such as weak balance sheets and high leverage of most large infrastructure companies, weak commodity cycles and unfavorable policy framework on ownership and operatorship of basic infrastructure assets.
FM asks big firms to clear MSME dues
Finance minister Nirmala Sitharaman has said banks have sufficient liquidity, and efforts are being made to ensure that large firms clear their dues to the MSMEs. The corporate affairs ministry will approach the large companies that owe MSMEs close to Rs 40,000 crore. The government will also look at bankers for suggestions on allowing NBFCd with good pooled assets but poor institutional rating to become eligible under the Centre’s one-time partial credit guarantee scheme.
Spectrum price reform in the works
Inaugurating the annual India Mobile Congress on Monday, Telecom Minister Ravi Shankar Prasad said the Centre was considering “pricing reforms in the sector”, possibly hinting at making the upcoming spectrum auction, especially in the 5G band, more attractive to the industry, reports Business Standard. Telecom operators, battling financial stress, have for long voiced their protest against the high base price of 5G spectrum. Most telcos are planning not to bid for 5G unless the government reviews the price.
Benchmark indices on Monday
Indian equity markets surrendered early gains to end marginally higher on Monday amid a weak growth outlook and trade related optimism in global markets.
Auto and bank stocks gained over expectation of festival demand aiding the benchmark Sensex to finish in the green. It closed 87.39 points higher at 38,214.47, while the broader Nifty settled at 24.75 points higher at 11,329.80.
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