Sensex, Nifty Highlights on October 16: Market indices ended higher on Friday, amid mixed global equities, backed by heavy buying in banking and financial stocks. Sensex ended 254 points higher at 39,982 and Nifty gained by 82 points to 11,762. Today, RBI is set to release its weekly FX reserves figures. Meanwhile, September quarterly earnings announcements by HCL Technologies, Bajaj Consumer Care, Federal Bank, Tata Communications, Tinplate Company, and Phillips Carbon Black will also set the tone for the stock market today. Overseas, stocks were trading mostly subdued on Friday, as investors' sentiment were dampened with European governments reinstating pandemic restrictions to curb a second wave of the coronavirus. Yesterday, amid heavy volatility in global markets, Sensex ended 1,066 points lower at 39,728 and Nifty fell 290 points to 11,680.
Here's a look at the updates of the market action on BSE and NSE today
3. 50 PM: Market outlook
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"We did not have much happening in the markets today. The support of 11550-11600 is still intact and therefore we continue to be in a bullish environment. Next week could prove crucial as we need to see if the Nifty is able to get past the 11950-12000 level or the bears take over and break the levels of 11500."
3. 45PM: Market at close
Market indices ended higher on Friday, amid mixed global equities, backed by heavy buying in banking and financial stocks. Sensex ended 254 points higher at 39,982 and Nifty gained by 82 points to 11,762.
3. 39PM: Market outlook
S Ranganathan, Head of Research at LKP Securities said, "At 40k SENSEX today the market mood was far from cheerful despite Metals & Pharma stocks posting gains. Selective buying in Midcaps by savvy investors not withstanding the general mood in the broader markets was that of caution as profit booking was seen across several sectors".
3. 24PM: Rupee ends flat
At the interbank forex market, the rupee opened at 73.41 against the greenback, and after witnessing a volatile trading session closed at 73.35, higher by just 1 paisa from its previous close of 73.36.
3. 12PM: Sector update
Sectorally, barring IT and media, all the other indices closed bullish today, with over 3% gains regisered in metal and around 1.5%- 2% gain in banking, realty, pharma and financial indices.
2. 57 PM: HCL Tech update
Jyoti Roy- DVP- Equity Strategist at Angel Broking said," September quarter revenue was in line with our expectations gross margins came in ahead of expectations. Despite currency headwinds, Ebitda and net profits for the quarter too were in line with our expectations. We continue to remain positive on HCL Technologies post the Q2 numbers".
2. 44PM: HCL Technologies share falls over 4%
Shares of IT firm HCL Technologies fell almost 5% intraday on Friday after the company posted its Q2 earnings.
The company reported a 18.5% year-on-year (YoY) rise in net profit at Rs 3,142 crore for the September quarter compared with Rs 2,651 crore profit in the corresponding quarter of last year.
At opening bell, HCL Tech stock price gained 2.04% to touch an intraday high of Rs 877 post the announcement. Although, later the highly volatile erased early gains and hit an intraday low of Rs 821, falling 4.47% as against the last closing of Rs 859.45 on BSE.
2. 33 PM:Persistent Systems update
Jyoti Roy DVP- Equity Strategist, Angel Broking said," Persistent Systems Limited, India (PSL) has announced the acquisition of the entire business of Capiot Software Inc., USA and its Indian subsidiary in a series of transactions for a consideration of USD 6.34mn. The acquisition will strengthen Persistent's enterprise integration capability with Capiot's strong track record of offerings using TIBCO, MuleSoft and Red Hat platforms. We continue to remain positive on Persistent system post the strong set of numbers by other large cap companies like Infosys, TCS and Wipro especially given the companys very high exposure to the high tech. and emerging vertical which is witnessing strong demand growth."
2.20 PM:UPL update
Keshav Lahoti Associate Equity Analyst, Angel Broking said, "On Thursday, UPL informed the exchanges that auditor Ms. KPMG, Mauritius has resigned as the auditor of UPL Corporation Limited, Mauritius, 8th October, 2020. UPL Corporation Limited, Mauritius is a material subsidiary of the Company. Ms. BSR & Co. LLP, Chartered Accountants, was appointed as Statutory Auditors of the Company for the period of five years at the AGM held on 8 th July 2017, continues to remain the Statutory Auditors of the Company, including for the Consolidated Financial Statements of UPL Limited, India. Ms. BSR & Co. LLP is a sub-licensee of KPMG in India. As per Company, in order to reorganize the Audit Process to improve Productivity, at the request of them, KPMG Mauritius has resigned as Statutory Auditors of UPL Corporation Limited, Mauritius. In the resignation letter, the auditor hasn't mentioned any adverse comment, they have said that no circumstances connected with their resignation which they consider should be brought to the notice of the members. We believe that this is sentimentally negative for the stock as the resignation of an auditor raises questions in the minds of the investors."
2.03 PM: Why Mindtree share fell 11% despite 88% rise in Q2 net profit
Mindtree share price slipped over 11% today after the firm announced its Q2 earnings. Fall in share price came despite the IT firm reporting a 87.9 per cent rise in consolidated net profit. The stock lost up to 11.44% to Rs 1264 against previous close of Rs 1427 on BSE.
The stock has lost 18% in three sessions. It trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
However, the share has gained 75% in one year and 62.67% since the beginning of this year
1. 44PM: UPL update
Keshav Lahoti Associate Equity Analyst, Angel Broking said, "On Thursday, UPL informed the exchanges that auditor M/s. KPMG, Mauritius has resigned as the auditor of UPL Corporation Limited, Mauritius, w.e.f. 8th October, 2020. UPL Corporation Limited, Mauritius is a material subsidiary of the Company. M/s. BSR & Co. LLP, Chartered Accountants, was appointed as Statutory Auditors of the Company for the period of five years at the AGM held on 8 th July 2017, continues to remain the Statutory Auditors of the Company, including for the Consolidated Financial Statements of UPL Limited, India. M/s. BSR & Co. LLP is a sub-licensee of KPMG in India. As per Company, in order to reorganize the Audit Process to improve Productivity, at the request of them, KPMG Mauritius has resigned as Statutory Auditors of UPL Corporation Limited, Mauritius. In the resignation letter, the auditor hasn't mentioned any adverse comment, they have said that no circumstances connected with their resignation which they consider should be brought to the notice of the members. We believe that this is sentimentally negative for the stock as the resignation of an auditor raises questions in the minds of the investors."
1. 30 PM: Why Voltas, Blue Star shares rose up to 5% in early trade
Shares of Voltas and Blue Star rose up to 4% in early trade today after government banned import of air conditioners with refrigerants. The move aims to boost domestic production.
Stock of Voltas Ltd gained up to 4.31% to Rs 701 against previous close of Rs 672 in early trade. Voltas share opened with a gain of 2.33% at Rs 688 on BSE.
1. 27PM: Gold, Silver prices in India on October 16
Gold price was trading flat on Friday near the key psychological level of Rs 50K. Overseas, gold gained on the back of comments from President Trump giving hope for a stimulus package before elections but major gains were restricted due to strong dollar.
On MCX, Gold prices traded flat at Rs 50,660 today over its previous close of Rs 50,712 per 10 gm. Gold futures today hit an intra day high and low of Rs 50,586 and Rs 50,712, respectively.
1. 16PM: Oil index
Brent crude futures, the global oil benchmark, fell 1 per cent to USD 42.73 per barrel. Oil price slipped as fresh restrictions were imposed as coronavirus infections climbed across Europe raising concerns over fuel demand and economic growth.
1.08 PM: Cyient shares rise over 4%
Shares of IT firm Cyient gained almost 5% intraday on Friday after the company posted its Q2 earnings.
The Hyderabad-based company reported a 14.8% decline in its consolidated net profit at Rs 83.9 crore for September 2020 quarter as against a net profit of Rs 98.5 crore in the year-ago period. Cyient's revenue decreased 13.4% to Rs 1,003.3 crore for the quarter under review as against Rs 1,158.9 crore in the same period last fiscal.
The highly volatile today touched an intraday high of Rs 383.4, rising 4.67% as against the previous close of Rs 366.30 on BSE. The stock also touched an intraday high and low of Rs 385 and Rs 370, respectively.
12. 51PM: Rupee slips 6 paise to 73.42 per dollar in early trade
Indian rupee, the domestic currency benchmark, fell 6 paise to 73.42 per US dollar on Friday's opening trade as forex market sentiment remained subdued amid concerns over resurgence in coronavirus cases in many parts globally.
On Thursday, the local currency settled at 73.36 against the greenback. The dollar index, fell 0.05 per cent to 93.81 against a basket of six currencies.
12. 39 PM: Bajaj Finance outlook
Geojit Financial Services in its Daily stock recommendation note said," Bajaj Finance's Q1FY21 AUM grew 7.1% YoY to Rs. 138,055cr. As of June 30th, 15.7% of the consolidated AUM was under moratorium. Net Interest Income rose 12.4% YoY to Rs. 4,151cr in 1QFY21. However PAT fell 19.5% YoY due to continued high provisioning (+206.1% YoY). As of 30th June i) Capital adequacy ratio stood at 26.4%; ii) Tier I capital at 22.6%; iii) Gross NPA at 1.4%; iv) Net NPA at 0.5% and v) PCR at 65%. Outlook remains positive for the stock with continuous reduction in provision coupled with companys focus on capital preservation, liquidity & opex management and calibrated business restart. Hence, we reiterate our BUY rating in the stock with revised target price of Rs. 3,630 based on 5x FY22E BVPS."
12. 21PM: Astrazeneca Pharma update
Yash Gupta - Equity Research Associate, Angel Broking said," Astrazeneca Pharma India Limited has received permission for import and market for cancer drug i.e Acalabrutinib 100mg capsules (Calquence ) from the Drugs Controller General of India in Form CT-20 (Marketing Authorization- Additional Indication). AstraZeneca Pharma India Limited will launch Calquence in India on October 21, 2020. Acalabrutinib 100mg capsules Indicated for the treatment of patients with mantle cell lymphoma (MCL) who have received at least one prior therapy or indicated for treatment of patients with chronic lymphocytic leukaemia (CLL) small lymphocytic lymphoma (SLL). This is positive development for Astrazeneca Pharma India Limited."
12. 11 PM: HCL Tech Q2 update
Jyoti Roy- DVP- Equity Strategist, Angel Broking said," HCL Tech reported a 6.4% qoq growth in revenues to USD 2,507mn in Q2FY2021 which was in line with our expectations. In rupee terms consolidated revenue increased by 4.2% qoq to Rs 18,594 crore while gross profits increased by 7.8% qoq to Rs 7,665 crore. Gross margins expanded by ~130bps qoq to 41.2%. Consolidated operating profit for the quarter was up by 9.7% qoq while EBIT margins were up by ~110bps qoq to 21.6%. Net profit for the quarter was up by 7.5% qoq to Rs 3,142 crore. Management has maintained their guidance of a 1.5-2.5% growth in revenue in constant currency terms for the rest of the quarters in the financial year. While Q2FY21 revenue was in line with our expectations gross margins came in ahead of expectations despite currency headwinds EBIDTA and net profits for the quarter too were in line with our expectations. We continue to remain positive on HCL Technologies post the Q2 numbers."
11. 53 AM: Market update
Market indices traded marginally higher on Friday, amid mixed global equities. Although, SGX Nifty on the Singapore Exchange was rising 60 points higher, indicating positive trend in domestic grounds today. Sensex was rising 86 points higher at 39,814 and Nifty gained by 28 points to 11,708.
11. 40 AM: Auto IndustrySeptember 2020 sales update
Commenting on the September 2020 data, Mr Rajesh Menon, Director General, SIAM said "In the month of September 2020, Auto Industry witnessed improvement in the sales of Passenger Vehicles by 26.45% and two-wheelers by 11.64%, while sales of three-wheelers registered a degrowth of -71.91%, as compared to September last year. Further, in the Quarter, July-September 2020, Passenger Vehicles grew by 17.02%, Two-Wheelers grew by 0.17%, Three-Wheelers saw a de-growth of -74.63% and sales of Commercial Vehicle declined by -20.13%, compared to the same Quarter in 2019."
Commenting on the September 2020 data, Mr Kenichi Ayukawa, President, SIAM said "In Quarter-2 some segments have shown signs of recovery. Passenger Vehicles and Two-Wheelers are positive, although on a very low base of previous year. We are expecting good demand in the festive season starting tomorrow. Thanks to government intervention, auto loan interest rates are below 8%, the lowest in a decade and that should encourage customers to purchase new vehicles. Commercial vehicle and three-wheeler sales are still in the negative growth zone. We are proud that with the last of crash safety standards implemented in October 2020, India is almost at par with Europe on safety and emission standards. The Indian Automobile industry will continue to contribute to the economy, environment and society.
11. 29 AM: Nifty outlook
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said,"Now, purely looking at charts, this down move should only be interpreted as a pull back towards the recent trend line breakout points. This coincides with the 20-day EMA level of 11600. Hence, all eyes would be on this level in the forthcoming session. However, since the fall has to do with the global uncertainty, it would be important to see how things pan out there and if things worsen, we may see the market correcting further. A close below 11600 would result in an extended fall towards 11450-11350 levels. And if things settle down and Nifty manages to hold 11600, we may see our markets resuming the recent uptrend. For the coming session, 11822-11900 is likely to act as intraday resistances."
He added," Sectorally, IT was one of the leading sectors in the last few weeks but yesterday it was the first one to trigger the selloff. Also, banking space disappointed yesterday after Wednesday's stupendous move."
11. 11 AM: Market update
Market indices traded higher on Friday, amid mixed global equities. Although, SGX Nifty on the Singapore Exchange was rising 60 points higher, indicating positive trend in domestic grounds today. Sensex was rising 290 points higher at 40,020 and Nifty gained by 55 points to 11,735. Today, RBI is set to release its weekly FX reserves figures.
11.04 AM: Gold outlook
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said," On Thursday, Spot Gold gained about 0.4 percent to close at $1921.9 per ounce and Spot silver ended higher by 0.12 percent to close at $24.3 per ounce as evident weakness in the U.S. labour market boosted appeal for the safe haven, Gold. The number of new claims for unemployment benefits in U.S. surged last week as the pandemic continued to hamper the world's largest economy. MCX Gold increased by 0.34% and closed at 50712 levels however silver prices corrected by 0.11% and closed at 61,535 levels.
He added," Even the International Monetary Fund expressing worries over the outlook for many emerging markets as the virus continued to spread limited the losses for the safe haven, Gold. As for today traders can go for buy in gold at Rs 50,500 levels with the stop loss of Rs 50250 levels for the target of 51200 levels. They can also go for buy in Silver at Rs 61,300 levels, with the stop loss of 60,800 levels and for the target of 62,400 levels."
10. 53 AM: Coronavirus toll
Worldwide, there were 391 lakh confirmed cases and 11.02 lakh deaths from the COVID-19 outbreak. India's COVID-19 caseload was at 73-lakh mark and the death toll from COVID-19 infections rose to 11.2 lakh, as of today.
10. 46 AM:Mindtree Q2 results
Jyoti Roy- DVP- Equity Strategist, Angel Broking said," Mindtree reported a 3.1% qoq growth in revenues to USD 261mn for Q2FY2021. In rupee terms revenue grew by 0.9% qoq to Rs 1,926 crore while EBIDTA grew by 8.8% qoq to Rs 378.4 crore. EBIDTA margins for the quarter expanded by 142bps qoq to 19.64% due to tight costs control despite rupee appreciation for the quarter. Net profit for the quarter grew by 19.1% qoq to Rs 253.7 crore. During the quarter the company reported new deal wins of USD 303mn as compared to USD 361mn in Q1FY2021. While the company did post a growth in revenues it was well short of the growth posted by larger companies like Infosys and TCS. This was largely due to the company's large exposure to the Travel Tourism and Hospitality segment which is amongst the worst impacted due to the Covid-19 pandemic and due to lack of growth in the top client which accounted for 28.9% of revenues in Q2FY2021. Post the relatively subdued set of numbers for Q2FY2021 markets will look forward to management commentary for the rest of the year."
10. 30 AM:JK Lakshmi Cement outlook
Keshav Lahoti- Associate Equity Analyst, Angel Broking said," "From the start of October month, cement stocks, especially large caps companies are rallying on the hopes that cement prices will increase as monsoon is over, on the expectation of strong Q2FY21 numbers and improving demand scenario. For Q2FY20, we expect cement companies to report strong growth in EBIDTA/tonne on account of decrease in cost/tonne especially due to reduction in power and fuel cost. For the quarter, we expect JK Cement and Shree Cement to report strong volume growth YoY on account of addition in capacity. Currently, we believe cement demand is almost close to normal levels in Eastern, Northern and Central parts of India. In upcoming months, we expect cement demand to pick up as more off take of cement will happen from infrastructure and urban real estate activity. From an investment point of view, we are bullish on the sector. Our preferred picks from large caps is UltraTech Cement and mid caps is JK Lakshmi Cement."
10. 25 AM: Cyeint Q2 earnings
Jyoti Roy - Equity Strategist, Angel Broking said, "Cyient reported a 3.4% qoq growth in revenues to USD 135mn. In rupee terms revenue grew by 1.2% qoq to Rs 1,003 crore while EBIT grew by 116.2% qoq off a very low base to Rs 110.5 crore. EBIT margins for the quarter expanded by 586bps qoq to 11.0% due to lower employee costs and tight costs control which negated the margin headwinds due to rupee appreciation. Net profit for the quarter grew by 3.0% qoq to ?83.9 crore. During the quarter the company reported order intake of USD 127.3mn, an increase of 9% qoq. While the company did post a growth in revenues it was well short of the growth posted by larger companies like Infosys and TCS. This was largely due to the continued degrowth in the aerospace and defence segment which is amongst the worst impacted due to the Covid-19 pandemic and degrew by 10.4% qoq. Markets will look forward to management commentary especially on the outlook for the aerospace and defence segment."
10. 19 AM: FII action
Foreign portfolio investors (FPIs) sold shares worth Rs 604.07 crore, while domestic institutional investors (DIIs), were also net sellers to the tune of Rs 808.29 crore in the Indian equity market on 15 October, provisional data showed.
10. 08 AM: Market outlook
On markets opening today --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investment said," A strong medium term support for the Nifty lies at 11550-11600. As long as this holds, we continue to look for opportunities to buy into this uptrend. If we break 11550, we should be headed down to levels closer to 11350. On the upside, the resistance would be at 11950-12000.
9. 50 AM: Stocks to watch today on October 16
RIL, Bharti Airtel, Mindtree, RITES, AstraZeneca Pharma, Tech Mahindra among others are the top stocks to watch out for in Friday's trading session
9. 43 AM: Global market trade negative
Asian markets are trading subdued on the last trading day of the week when coronavirus cases are increasing across the globe once again.
U.S. markets closed lower for the third consecutive day as coronavirus relief stimulus package still remain under discussion and infections climbed across Europe. European markets closed sharply lower as hopes faded regarding the announcement of US stimulus before elections and as corona infections climb across Europe.
9. 39 AM: Nifty technicals
On Wednesday, we had noted that should 11860 give away, it might require a drop to 11540 before a proper turn around occurs. Now, with Nifty have plunged into the mid 11600s, we are encouraged to look for early onset of reversal plays eying a close above 11800-860 today. However, if the initial hurdle of 11750 is not cleared, then the prospects of 11540 or more would have to be considered.
9. 28AM: Opening session
Market indices opened higher on Friday, amid mixed global equities. SGX Nifty on the Singapore Exchange was rising 60 points higher, indicating positive trend in domestic grounds today. Sensex was rising 290 points higher at 40,020 and Nifty gained by 55 points to 11,735.
9. 10 AM: Nifty technicals
As per Reliance Smartmoney Research, NSE-NIFTY failed to continue its daily rising trend amidst higher level profit booking. Yesterday, the index reversed after testing its psychological hurdle point of 12,000 and formed a bearish engulfing pattern. Due to such a massive decline in the index and bearish formation on the daily chart, its key technical indicators has given sell signals. We believe this volatility will be extended for next couple of days. On the lower side, now the index will find supports at 11,618 level and then at 11,400 mark. On the higher side, its psychological hurdle point-placed at 12,000 mark- will cap the up-move.
As for the day, support is placed at around 11,553 and then at 11,425 levels, while resistance is observed at 11,917 and then at 12,153 levels.
9.00 AM: Global markets
Overseas, stocks were trading mostly subdued on Friday, as investors' sentiment were dampened with European governments reinstating pandemic restrictions to curb a second wave of the coronavirus.
8. 50 AM: Market outlook
Ajit Mishra, VP - Research, Religare Broking said,"Markets witnessed a sharp sell-off in today's session following global peers. Investors' sentiments were largely impacted as US fiscal stimulus would get delayed until elections. Also, the second wave of Covid-19 infection led to strict restriction and lockdown globally majorly in Europe added to their worries. On the domestic front, the benchmark indices opened flat and gradually inched lower in the first half however decline in IT, banking and energy majors intensified the fall as the session progressed."
8. 40 AM: Earnings today
HCL Technologies, Bajaj Consumer Care, Federal Bank, Tata Communications, Tinplate Company, and Phillips Carbon Black will report Q2 earnings today.
8. 30 AM: Closing on Thursday
Indian market indices fell heavily on profit-booking after 10 days of consecutive gains and erased over 2% each on Thursday, led by losses in IT and banking stocks.
Yesterday, amid heavy volatility in global markets, Sensex ended 1,066 points lower at 39,728 and Nifty fell 290 points to 11,680.