Sensex, Nifty Highlights on November 6: Market indices closed majorly bullish on Friday, amid positive global equities. Extending gains for the fifth straight session, Sensex gained 552 points higher at 41,893 and Nifty gained 143 points to 12,263. Meanwhile, September quarterly earnings announcements by ITC, Cipla, Ashok Leyland, Bank of India, Union Bank of India, Vedanta, BHEL, Aditya Birla Fashion, Central Bank of India will also set the tone for the stock market today. Yesterday, Sensex ended 724 points higher at 41,340 and Nifty rose 211 points to 12,120.
Here's a look at the updates of the market action on BSE and NSE today
3. 56PM: Closing
Market indices closed majorly bullish on Friday, amid positive global equities. Extending gains for the fifth straight session, Sensex gained 552 points higher at 41,893 and Nifty gained 143 points to 12,263.
3. 46PM: Market outlook
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"12200 was a resistance level for this month's expiry. We have successfully crossed and closed above that. This should push the Nifty to its next level which is 12400. The macro trend of the index is positive and any dip or correction can be utilised to buy into this market. The Nifty has a very good support at 11500."
3. 39 PM: Market outlook
Vinod Nair, Head of Research at Geojit Financial Services said," Positive global sentiment from the US election, expectation of Fed open market operation and improving economic activities have added optimism. It can take Indian market to a new zone over-weighing worries over increasing Covid cases backed by a strong performance in sectors like banking, IT, Pharma and exporters. We expect this momentum to sustain aided by positive Q2 results, favorable economic data, strong FII buying and expectations of an additional stimulus package."
On the weekly review he said,"Markets were surging consistently over the week given favorable economic data and expectations of support measures from the upcoming Fed meeting outcome. Indian benchmark indices have continued their strong momentum amidst increasing concerns of pandemic which was supported by a good set of quarterly numbers. Majority of gains for the index were contributed by the Banking sector given good growth in collections and assets. Further, volatility was very high over the week as the US election acted as a catalyst for the same. Markets are currently awaiting next week's data on inflation, foreign trade and manufacturing. We expect trade & manufacturing to improve as the current economy is normalizing while inflation is expected to remain above target levels."
3. 17 PM: Adani Power share rises over 9%
Adani Power shares gained more than 9 intraday after the company declared manifold jump in its consolidated net profit to Rs 2,228.05 crore in the quarter ended September 30, mainly on account of improved income. This was against a net profit of Rs 3.88 crore in the year-ago period and a loss of Rs 633 crore in the first quarter.
Adani Power shares opened with a gain of 5.77% today at Rs 38.50 and later touched an intraday high of Rs 39.9, rising 9.62% as against the previous close of Rs 36.40 on BSE. Earlier today, Adani Power stock also fell to its intraday low of Rs 37.60.
3.01 PM: IOCL Q2 outlook
Commenting on Indian Oil Corporation, Centrum Broking said in its note,"We revise our estimates for FY21/22E sharply upwards by 76/22% respectively to factor in stronger volumes, higher inventory impact in FY21e, steady marketing margin performance and sharply lower opex which offsets the reduction in refining throughput and marginally higher depreciation. Our target price is revised to Rs105/sh (from earlier Rs95/sh) driven by the changes in earnings. Given the completely divergent (vs long term historical trends) valuations and the prospects of meaningful earnings growth over the next 2 years (EPS CAGR of 34.6% over FY20-22e), we believe fears of an uncertain downstream environment and divestment uncertainty for BPCL are overblown. Upgrade to BUY."
2. 57 PM: India Cements' share gains over 6%
India Cements' share gained over 6% after the company declared over 13-fold increase in its consolidated net profit at Rs 69.21 crore during the second quarter from Rs 5.07 crore in the July-September period a year ago.
Company's revenue dropped 14.18% to Rs 1,069.72 crore as against Rs 1,275.44 crore in the corresponding quarter of the last fiscal.
Following the earnings update, India Cements share price gained 6.26% to the intraday high of Rs 128.95 on BSE against the earlier close of Rs 121.35. The stock also hit an intraday high of Rs 121.90 during today's session, after opening at Rs 122.50.
2. 49 PM: City Union Bank Q2 outlook
Commenting on City Union Bank - Centrum Broking said in its note," As NII for H1FY21 was better than expected we raise our FY21E NII but due to likely shift in stress to FY22E we increase provisions. This could impact FY21/22E PAT by 16%/-7.2%. We like CUBK for its consistency and management quality. Raise multiple to 2.5x FY22E ABV and TP to Rs190 (vs 2.0x/Rs154 previously). Risks: higher stress."
2. 33PM: CARE Ratings Q2 outlook
Commenting on CARE Ratings - Centrum Broking said in its note," CARE is focusing on protecting its market share along with streamlining and automating processes. The stock remains attractive at 12.9x FY22 EPS and with the new CEO in place, KMP risk substantially reduces. We revise our PAT estimates by (0.9%)/1.2% for FY21/22 though maintain our P/E multiple at 15.5x on FY22E EPS of Rs31.3 to arrive at a TP of Rs486 (vs Rs480 earlier). Retain BUY. Risks: drop in borrowing activity and pressure on yields."
2. 21 PM:JK Lakshmi update
Commenting on JK Lakshmi, Angel Broking said,"JK Lakshmi is a predominantly north India cement company with capacity of 13.3 Mn Mt. Currently, north India is favorable location for the cement industry as it is consolidated to a large extent as well as demand and supply outlook is better compared to other locations. Q1FY21 numbers of the Company were better compared to its peers due to favorable regional presence. It is also trading at a significant discount compared to other north based cement company such as JK Cement as well as historical valuation."
2. 10 PM: IDFC First Bank update
Commenting on IDFC First Bank, Angel Broking said,"We believe efforts to built liability franchise, fresh capital infusion and provision taken on wholesale book will help to tide over this difficult time. The IDFC First Bank is trading ( 0.7 x FY22ABV) at a significant discount to historical average valuations."
1. 59 PM: Market rises further
Market indices traded on a bullish note on Friday, amid positive global equities. Extending gains for the fifth straight session, Sensex gained 533 points higher at 41,873 and Nifty gained 126 points to 12,256.
1. 49 PM: Persistent Systems outlook
Commenting on Persistent Systems, Angel Broking said," Company has won a large deal during the quarter which will ramp up over the next few quarters. We expect the company to post revenue/EBITDA/PAT growth of 11.6%/21.4%/19.7% between FY20-FY22 given negligible impact of Covid-19 on FY21 numbers strong deal wins, ramp up of existing projects along with margins expansion.
1. 34 PM: Berger Paints share climbs over 4%
Berger Paints share rose hit a fresh all-time high in early trade after the firm reported a 13.55 percent increase in its Q2 net profit. Share of Berger Paints gained 4.3% to Rs 675.45 against previous close of Rs 646.95 on BSE. Berger Paints stock has risen 4.12% in the last 5 days. The stock opened with a gain of 2.28% at Rs 661.70.
1. 20 PM: Top gainers and losers
Reliance Industries, followed by M&M, Bajaj Auto, Tata Steel, NTPC, Titan and HDFC were among the was the top gainer in the Sensex pack. Tech Mahindra, Nestle India, Bharti Airtel, PowerGrid and Infosys were among the laggards.
1. 12PM: Rupee zooms 44 paise to 73.92
Indian rupee, the currency benchmark, gained by 44 paise to 73.92 per dollar on Friday's opening trade, supported by foreign portfolio flows and positive domestic equities.
Traders said investors continued to wait for the outcome of the US elections, expecting Joe Biden's victory.
The domestic unit opened at 73.99 per US dollar at the interbank forex market, then gained by 44 paise to touch 73.92 over its previous close.
1.02 PM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 5,368.31 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,208.18 crore in the Indian equity market on 5 November, provisional data showed.
12. 57 PM: Coronavirus toll
Rising coronavirus cases also helped in capping losses in the bullion metal. Worldwide, there were 490 lakh confirmed cases and 12.39 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 84-lakh mark and death toll from COVID-19 infections rose to 1.25 lakh, as of today.
12. 46 PM: PNC Infratech Q2 outlook
PNC Infratech -Centrum Broking said in its note," We see a strong execution rebound in H2 with improved labor availability and rise in share of executable order book. We expect 18.6% EPS growth in FY22 (flat earnings in FY21). Robust cash position and cash generation should be adequate to fund outstanding equity commitments. With improved growth visibility, resilient execution and comfortable liquidity we value PNC's EPC business at 13x and value equity invested in road assets at Rs33/share. Maintain Buy with price target of Rs228."
12. 30 PM:US Presidential elections outlook
Commenting on US Presidential elections, Centrum Broking said in its note," In line with the opinion polls and market expectations, Democratic party representative Joe Biden is in the lead, with 264 seats while Republican party representative Donald Trump is holding onto 214 seats. This sets Biden on course to win 270 seats in the eventual count. However, alongside the presidential race, investors have been keeping a close eye on the overall seats in the House and Senate. Looking at the ongoing trends it seems that there will not be any majority in the Congress i.e. Democrats are likely to gain majority in the house while the Republicans are likely to gain control of the Senate. This clearly means that a lot will than come down to negotiations between the Democrats and the Republicans on a possible fiscal relief bill, thereby keeping investor's breath on hold."
12. 23PM: Berger Paints Q2 outlook
JMFL said in its report," Berger expectedly posted a sharp recovery in 2QFY21 clocking a double-digit volume growth which is quite on similar lines as seen in Asian Paints. EBITDA was marginally higher than our estimates despite a 3% beat on revenue which was a result of lower than expected gross margin gains; sharp crude price deflation seems to have been partly negated by lower product-mix. Subsidiaries reported a revenue growth of 22% aided by the acquisition of STP; excluding this revenue would have been flattish as per our workings. With revenue trajectory recovering well and raw material price trends expected to remain benign, we expect Berger to sustain a strong earnings growth trajectory in the latter half of FY21. However, Berger's valuation remains extremely rich at 77x FY22 earnings which represents a 30% premium to its past 3-year average. It is also quoting at a 25% premium to its much larger peer Asian Paints while there is no material difference between the growth rates of the two companies. We find it extremely difficult to justify such premium valuations even after considering the attractive long term opportunity for the industry and re-iterate our SELL rating."
12. 17 PM: Indostar Capital update
Jaikishan Parmar- Sr. Equity Research Analyst, Angel Broking said," Indostar Capital reported a moderate set of Numbers for Q2FY21. Consolidated profit declined by 36% /33% YoY/QoQ, largely owing to weak NII (fell16% YoY) and higher operating expense(increased 7%YoY), however, lower provision cost (fell 55% YoY) supported PAT. AUM continue to declined (15% /7% YoY/Q0Q). AUM declined as well as define a strategy to reduce corporate lending MIX. In Q2FY2195% of the disbursement was towards retail lending. GNPA improved, collection efficiency reached 99.77% in October, which is higher compared to other NBFC. Till now Indostar has received 1.39% of the book for restructuring. Indostar currently trading at 0.95x of Q2FY21 Book value, which we believe is reasonable considering a healthy Capital adequacy ratio (35%) and focused management."
12. 01 PM: Gujarat Gas update
JMFL in its India Morning Brief said," Gujarat Gas (GGas) reported strong earnings in 2QFY21 on account of strong rebound in volumes to above pre-Covid levels led by Industrial segment (~9.8mmscmd vs FY20 average of 9.4mmscmd). Hence, margin was also higher due to operating leverage; further aided by decline in gas cost. Further, company highlighted that the current volume is even higher at ~10.5mmscmd. As a result, we have raised our FY21/FY22 volume by 6%/7% reflecting 11%/7% increase in FY21/FY22 EBITDA; our revised DCF-based TP stands at INR 385 (from INR 360). We maintain BUY as we expect GGas to register robust volume growth led by: a) rise in gas use by industrial consumers due to the NGT's 6Mar'19 order banning the use of coal-based gasifier in Morbi and b) improved competitiveness of gas given relatively weak gas prices."
11. 55AM: Lupin Q2 update
JMFL in its report said," Lupin reported a muted margin performance in 2QFY21 owing to a sharp sequential increase in other expenses (+24% QoQ) even as staff costs moderated post the restructuring of the US specialty field force completed in the previous quarter. Revenue/EBITDA/Adj. PAT of INR 38350 mn/ 5812 mn/ 2110 mn were -1%/-9%/-50% YoY and were -3%/-18%/-35% vs our estimates. The sharp miss in PAT was on account of lower other income and higher tax expense. EBITDA margin declined by 135 bps YoY to 15.2% (JMFe: 18.1%). US sales (USD 180 mn) were marginally ahead of our estimates and were aided by gProAir and the re-launch of gGlumetza towards the end of the quarter. Domestic revenue was flat YoY and was a notable miss with the de-growth in the acute portfolio weighing on overall growth. ROW revenue (ex-India & US) was broadly in line with an EU ramp-up in bEnbrel (launched) and gFostair (4Q launch) expected to be gradual. The key negative for the quarter was the management commentary pointing to expectations of mid single-digit growth in domestic formulations in 2H and a ramp-up in gProAir from 4Q despite the competitive landscape having turned favourable post Perrigo's exit. Given that an uptick in US sales in 2H on the back of favourable seasonality, further market share gains in Levothyroxine and a ramp-up in gProAir was already factored in, the resolution for 5 facilities currently under an Official Action (Somerset resolution likely in 2H) now remains a key monitorable. With the management again revising its margin guidance downward (expected 4QFY21 margin of c.18.5% implying a full-year margin closer to 16% vs c.17% guided to in 1Q & c.19-20% earlier), we maintain our cautious stance on the name and await signs of stabilization in the company's cost structure. We cut our FY21/22 estimates by 13%/8% and introduce FY23 estimates. SELL with a Mar'22 TP of INR 840."
11. 38 AM: YES Bank share trade flat today
YES Bank shares were trading flat at Rs 12.28 on Friday. Earlier this week, reports suggested that the troubled private sector lender is gearing up to sell its non-performing assets (NPAs) worth Rs 32,344 crore to asset reconstruction companies (ARCs) or other potential investors.
However, today, Yes Bank said,"The Bank would like to clarify that, the Bank in its normal course of business explores options of selling NPAs to ARCs as it may deem necessary."
11. 16AM: Gold outlook
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said,"On Thursday, Spot Gold prices gained over 2.3 percent to close at $1948.6 per ounce and Spot silver prices surged over 5.9 percent to close at $25.3 per ounce as increasing bets on Democrat Joe Biden winning the U.S. elections and a lower Dollar boosted appeal for the safe haven, Gold. As the election process commenced, markets anticipated a slight edge towards Democrat Joe Biden which might open gates for larger U.S. stimulus. Gold tends to benefit from stimulus infusion as it is considered as a hedge against inflation and currency debasement. Moreover, alarming increase in the corona virus cases around the globe clouded the global economic outlook. Many nations reinforced fresh lockdown which dented markets risk appetite and further supported Gold prices. Gold prices further gains as the U.S. Dollar depreciated ahead of the Federal Open Market Committee (FOMC) meet making the yellow metal cheaper for other currency holders."
He added," As for today traders can go for Buy in gold at Rs 51700 levels with the stop loss of Rs 51400 levels for the target of 52400 levels. They can also go for Buy in Silver at Rs 64,000 levels, with the stop loss of 63200 levels and for the target of 65300 levels."
10. 49 AM: Nifty outlook
As per Geojit Financial Services, :"We are now within striking distance of the 12250-12380 target with which we had opened week with. Expect 12180 to be a point of weakness, but a close above the same today could encourage us to expand target to 12540 for next week. Alternatively, inability to float above 12180 could force a consolidation inside 12044-11985, but unless below 11900, a collapse is not expected."
10. 34 AM: Global markets
Asian markets are trading mixed on the last day of the trading week as investors await final result of US elections.
U.S. markets closed higher witnessing sharpest weekly gains since April as investors cheered the fading possibility of higher taxes under a split congress.
European markets closed higher as investors closely watched the ongoing vote counting in US which is nearing its conclusion. Media stocks gained.
10. 20 AM:Global Virtual Global Investor Roundtable outlook
Commenting on Global Virtual Global Investor Roundtable organized by Prime Minister Narendra Modi, Kanika Agarrwal, Co-founder and Chief Investment Officer, Upside AI said," We, as a country, need to think 20 years into the future to decide what we are building today. One of the government's top priorities should be to be an AI Superpower in the next decade. For this, we need to invest in talent, R&D capabilities, and more encouraging policy support. Trying to solve these three, should lead to greater foreign investment into the sector as it has for the US and China. Over the next decade, AI will make millions of jobs redundant and building capability around it allows the country's next generation to be ready for a new world that is emerging. Government initiatives like India AI and Startup India are great starts in this direction and deserve the full attention from the government and investors."
10. 13 AM: RIL share rises 3%
Reliance Industries share rose nearly 3% in early trade today after RIL said Saudi Arabia sovereign wealth fund Public Investment Fund (PIF) would invest Rs 9,555 crore (approximately $1.3 billion) into Reliance Retail for an equity stake of 2.04 per cent. The investment would value RRVL at a pre-money equity value of Rs 4.587 lakh crore (approximately $62.4 billion).
10.08 AM: Market outlook
On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said:" The trend of the index is positive and we should work towards a target of 12300-12400. Since the markets have run up in the last couple of days, it would be best to accumulate the Nifty on dips for higher targets. The support for the index is at 11500 so the risk reward would be favourable if we enter closer to the support price."
9. 58 AM: Market rises further
Market indices traded on a bullish note on Friday, amid positive global equities. SGX Nifty on the Singapore Exchange was falling by 10 points, indicating muted trend in domestic grounds today. Extending gains for the fifth straight session, Sensex gained 300 points higher at 41,640 and Nifty gained 85 points to 12,2059. 45 AM: Ramco Cements - 2Q result update
Commenting on Ramco Cements - 2QFY21 result update - Centrum Broking said in its note," Factoring the strong 1HFY21 performance we have revised our FY21e estimates EBTIDA/PAT/EPS estimates to Rs12.8bn/Rs6.5bn/Rs27.6 (earlier Rs10.4bn/Rs4.7bn/Rs19.8 respectively). However, the 1HFY21 show was driven by realisation gains with limited volume gains. This will normalize as non-trade sales increase, further check in expenses will reverse partially. Factoring the same we maintain our FY22e earnings at Rs15.6bn/Rs8.16bn/Rs34.7 respectively. As the stock continues to trade at premium we maintain our Reduce rating. We have valued TRCL at an EV/EBITDA of ~ 11x FY22e earnings to arrive at a revised target price of Rs623 (Rs578 earlier). At our TP the stock trades at a replacement cost of Rs7.6bn/mnt effective clinker converted capacity of 19.9mn tonnes FY22 rated capacities."
9. 30 AM: Stocks to watch today on November 6
RIL, IndiGo, HDFC Bank, Adani Power, Dish TV, Cadila among others are the top stocks to watch out for in Friday's trading session
9. 24 AM: Opening session
Market indices opened on a bullish note on Friday, amid positive global equities. SGX Nifty on the Singapore Exchange was falling by 10 points, indicating a muted trend in domestic grounds today. Sensex gained 55 points higher at 41,470 and Nifty gained 37 points to 12,137.
9. 14 AM: Nifty outlook
As per Reliance Smart Money: Finally, NSE-NIFTY managed to surpass its psychological hurdle-12,000 level and rose to 8-month high. Yesterday, the index continued its daily rising trend on back of global cues and also, due to buying across the board. Overall market breadth remained positive for straight third trading session in a row. Its key technical indicators on the near-term timeframe chart are positively poised. Due to recent breakout, its short-term trend turned in favour of bulls. That could take the index towards 12,250 and 12,430 levels. On the lower side, the index will supports at 11,780 and 11,580 levels.
As for the day, support is placed at around 12,055 and then at 11,990 levels, while resistance is observed at 12,158 and then at 12,197 levels.
9. 08 AM: Global markets
Overseas, Asian stocks were trading mixed on Friday as investors awaited for U.S. election results. Democrat Joe Biden reportedly crept closer to victory over U.S. President Donald Trump
Democratic candidate Joe Biden is closer to victory from Republican nominee President Donald Trump, winning Michigan and Wisconsin and just 6 votes short of 270 in terms of electoral votes. As per latest numbers, Joe Biden has won 264 electoral college votes, while US President Donald Trump has won 214 votes.
Wall Street stocks closed higher after the US Federal Reserve said Thursday it kept interest rates unchanged near zero, noting the economy remained well below pre-pandemic levels.
8. 50 AM:Earnings today
Investors are also awaiting Sept quarter earnings reports will provide a clear picture of the disruption caused by the coronavirus pandemic-induced lockdown. ITC, Cipla, Ashok Leyland, Bank of India, Union Bank of India, Vedanta, BHEL, Aditya Birla Fashion, Central Bank of India, Dilip Buildcon, Glenmark Pharma, SAIL are among the top companies scheduled to announce their Q2 results today
8. 40 AM: Rupee closing
In the forex market, rupee zoomed 40 paise to close at 74.36 against the US dollar.
8. 30 AM: Closing
Market indices ended higher on Thursday, tracking gains in index-heavyweights Reliance Industries, Infosys and SBI, amid positive cues from global equities. Awaiting cues from the US Presidential elections, Sensex ended 724 points higher at 41,340 and Nifty rose 211 points to 12,120. Yesterday, Sensex ended 355 points higher at 40,616 and Nifty rose 95 points to 11,908.