Sensex, Nifty Highlights on October 27: Market indices ended on a bullish note on Tuesday, despite muted global equities. Sensex closed 376 points higher at 40,522 and Nifty gained 121 points to 11,889. SGX Nifty on the Singapore Exchange was rising by 45 points, indicating positive trend in domestic grounds today. Meanwhile, September quarterly earnings announcements by Bharti Airtel, Tata Motors, Amara Raja Batteries, Castrol India, Ceat, ICICI Prudential Life Insurance will also set the tone for the stock market today. Yesterday, Sensex ended 540 points lower at 40,145 and Nifty fell 162 points lower at 11,767.
Here's a look at the updates of the market action on BSE and NSE today
3. 54PM: Closing
Market indices ended on a bullish note on Tuesday, despite muted global equities. Sensex closed 376 points higher at 40,522 and Nifty gained 121 points to 11,889.
3. 39 PM: Mphasis update
Centrum Broking said in its note," Mphasis has traded at 20 to 30% discount to LT Infotech. This is owing to concentrated vertical mix ( vs LTI which has a more broad vertical mix) and concern on step fall in DXC business in 2HFY22. We note that DXC concentration could moderate to 11% of total revenues by 2QFY22. Hence , we do not see a significant risk from DXC as concentration is already moderating . Mphasis has also cited in the earnings call that it is proactively working with DXC and remains their largest contractor."
3. 20 PM: Heidelberg Cement
Centrum Broking said in its note," We have revised our FY21e earnings to Rs11.0/sh (Rs10.1) and maintained our FY22e earnings at Rs13.2/sh. factoring in HEIM's focus on retail segment (85% trade sales in Central India), focus on guarding margins and cost control. This will aide EBITDA margins to stay ~24%. We arrive at a fair value of Rs190/sh (earlier Rs183) assigning 7.0x EV/EBITDA FY22e earnings. At our target price, HEIM trades at a replacement cost of Rs6.3bn/mn tonnes FY22e capacities. Maintain ADD rating."
3. 12 PM: HDFC Life Insurance update
Geojit in its reportsaid," Company's market share for Individual weighted received premium (WRP) expanded 230 bps to 17.5% for H1FY21. Strong product mix and APE (Annualized Premium Equivalent) growth in individual protection segment along with improvement in premiums through digital payments should help performance. Hence, we upgrade our rating to BUY with a revised target price of Rs. 660 based on 4.5x FY22E Embedded Value per share."
3.01 PM: NTPC stock rises over 4%
NTPC share price climbed over 4 percent intraday after the firm said its board would meet on November 2 to consider a proposal to buy back equity shares of the company. The firm will also announce its earnings for the quarter ended September 2020 on November 2. The stock opened with a gain of 3.9% at Rs 89.80 against previous close of Rs 85.90 on BSE. The share touched an intraday high of Rs 89.8, rising 4.54%.
2. 57 PM: Market update
Market indices traded on a bullish note on Tuesday, despite muted global equities. Sensex traded 400 points higher at 40,547 and Nifty gained 120 points to 11,888.
2. 46PM: Angel Broking shares jump 20%
Angel Broking shares gained 20% intraday on Rs 298.35 on Tuesday after the company highest-ever quarterly profit reported in Q2FY21.
The retail broking house reported a 47.3% sequential growth and 288.3% YoY increase in its profit of Rs 74.47 crore in the September 2020 quarter. The company had posted a net profit of Rs 48.3 crore in the June quarter.
Angel Broking share price opened with a gain of 6.58% at Rs 265 and later gained 19.99% to hit an intraday high of Rs 298.35. The stock has traded in a wide range of Rs 33.35 and currently trades 2.56% away from 52-week high of Rs 306
Commenting on the Q2FY21 results, Vinay Agrawal, CEO said, "We continue to gain significant market share across all segments. Our Average Daily Turnover (ADTO) has grown by 107% QoQ to Rs 1,281 bn in Q2FY21. We will continue to fuel our growth through our digital first & client-centric approach, thereby having a sustainable and scalable model."
2. 33PM: Tech Mahindra update
On Tech Mahindra, JMFL said ,"TechM's performance continues to be in line with our 'margin recovery' thesis and reflects encouraging progress on the 1st phase of 'Repair , Rally and Rise' strategy showing up on (1) margin improvement, (2) flexing operational levers and (3) improvement in balance sheet and cash generation (Operating cash flow up 2.2x in 1HFY21 aided by a 15 day reduction in DSO's over the past 2 quarters). We are also enthused by order bookings and the special dividend of INR 15/share and hope that this is the 1st step towards improving cash return to shareholders (note that TechM's payout ratios at 30-35% are significantly lower than Tier I peers). We raise our FY21E-23E EPS by 2-6% driven primarily by higher margin assumptions and increase our target multiple one notch to 15x (V/s 14x earlier). Our revised TP is INR 950 (V/s INR 850 earlier). BUY stays. Tier I preference is INFO>HCLT>TECHM( All rated BUYs)>WIPRO>TCS( both rated HOLD)."
2. 20 PM: Bharti Airtel share trading flat
Bharti Airtel share price traded flat on Tuesday as the telecom major is scheduled to announce September quarter earnings later in the day.
Shares of Bharti Airtel fell 1.5% to Rs 427.55 apiece, from its previous close of Rs 434.05 on the BSE. The stock opened higher at Rs 434.50 and hit an intraday high of Rs 438.70.
Market capitalisation of the firm stood at Rs 2,34,861 crore. Bharti Airtel shares trade higher than 5 and 20-day moving averages but lower than 50, 100 and 200-day moving averages.
2. 12 PM: Mphasis update
Mphasis's Sep'20 quarter results exceeded street expectations on revenue growth with a 6% QoQ c/c rebound despite sharp 15% QoQ revenue decline at DXC aided by the strong show in the Direct Channel business. EBIT margin improvement was restricted to 40 bps QoQ increase and inline with expectations as company suggests increased focus around delivery relevance rather than margin optimisation in the near term. Order intake continues to be strong with company reporting net new wins of USD 360 mn (V/s USD 259 mn QoQ/USD 174 mn), marking the 3rd quarter in a row of USD 200 mn+ TCV bookings and providing confidence in growth momentum sustaining in the Direct business. Company remains confident of its prospects citing strong pipeline (+75% YoY) and success at client mining which ha reflected in strong client metrics performance and benefit at vendor consolidation exercises in recent past. We find valuations cheap on a relative basis at 18x FY21E P/E given solid growth momentum in the Direct business and predictable margin profile. Assume coverage with a BUY rating and a TP of INR 1,630 (based on 20x Dec'22E EPS ).
1. 47PM:Kotak Mahindra Bank share rises over 11%
Kotak Mahindra Bank share rose over 11% today after the private sector lender's announced its Q2 earnings. Share of Kotak Mahindra Bank rose 11.38% to Rs 1576 against previous close of Rs 1,415 on BSE. Kotak Mahindra Bank share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 12.1% in the last 2 days.
The stock opened with a gain of 2.42% at Rs 1450 on BSE.
1. 30 PM: Market update
Yash Gupta Equity Research Associate, Angel Broking said,"Indian Indices Nifty and Sensex up by 75 points (0.67%) and 229 points (0.56%) respectively. Indian Indices opened flat after yesterday's sell off on back of negative global market clues due to rise in covid cases. Today S&P BSE BANKEX (up 2.33%), S&P BSE POWER (up 1.66%) while S&P BSE Information Technology (down 1.31%), S&P BSE REALTY (down 0.24%). We expect the market to trade in range bound and may become volatile on back of Global market clues as are headed towards Election Week. Global Market update - DOW Jones down by 650 points (down 2.29%) and NASDAQ down by 189 points (down 1.64%)."
1. 24 PM:Gland Pharma update
Yash Gupta Equity Research Associate, Angel Broking said," Gland Pharma has received capital markets regulator Sebi's go-ahead to launch an initial public offer that includes fresh issue of shares worth up to Rs 1,250 crore. Apart from the fresh issue, there is an offer for sale (OFS) of a little over 3.4 crore shares as part of the initial public offering. As per the market news this IPO can be of 5,000 crores of worth. The Hyderabad-based company, backed by China's Fosun Pharma, They also have an extensive track record in complex injectables development, manufacturing and marketing and a close understanding of the related sophisticated scientific, technical and regulatory processes. This is one of the first Indian pharma companies with a Chinese parent to go for public listing."
1. 12PM: Torrent Pharma update
Torrent Pharmaceuticals Limited revenue from operations for Q2FY21 stood at Rs 1,985 crores down by 1.4% YoY from Rs 2,014 crores in Q2FY20. Indian business has done well for the company which is up by 7% stood at Rs 963 crores in Q2FY21 from Rs 899 crores in Q2FY20 while USA business up down 14% in Q2FY21 stood at Rs 327 crores in Q2FY21 as compared to 380 crores in Q2FY20. Profit before tax for the quarter down by 4.5% at Rs 384 crores in Q2FY21 as compared to Rs 402 crores in Q2FY20. Profit after tax for the quarter down by 3.4% at Rs 310 crores in Q2FY21 as compared to Rs 321 crores in Q2FY20. Company has reported results inline with expectation.
12. 50 PM: Rupee falls 10 paise to 73.94
Indian rupee, the domestic benchmark, slipped 10 paise to 73.94 against the US dollar on Tuesday's opening trade, tracking muted domestic equities.
At the interbank forex market, the domestic unit opened weak at 73.94 per dollar, falling 10 paise over its previous close.
On Monday, the rupee had settled at 73.84 against the US currency.
12. 44PM:Ant Group IPO
Ant Group Co Ltd is poised to raise up to $34.4 billion in the world's largest stock market debut as investors rush to buy into the fast-growing Chinese fintech giant despite risks of greater scrutiny at home and abroad. The dual listing, a first for Shanghai's Nasdaq-style STAR Market and Hong Kong, would value Ant at about $312 billion before a so-called greenshoe option for a 15% overallotment of shares.
12. 28 PM:Gujarat Heavy Chemicalsupdate
Jyoti Roy - DVP- Equity Strategist, Angel Broking said," Gujarat Heavy Chemicals Ltd. (GHCL) reported consolidated revenues of Rs 806.5 crore for Q2FY21 down by 3.5% YoY. EBITDA for the quarter contracted by 18.0% YoY to Rs 159.3 crore while margins contracted by ~349bps YoY to 19.76%. Net profit for the quarter was down by 27.7% YoY to Rs 84.5 crore. Numbers for the quarter were impacted due to poor performance of the soda ash division which witnessed a 11% YoY decline in revenues to Rs 482 crore while EBITDA was down by 34% YoY due to sharp contraction in margins by 840bps YoY to 24.6%. Performance of the soda ash division was adversely impacted due to fall in realizations by 13% YoY. However the textiles division posted a good set of numbers for the quarter and the board has approved the demerger of the division to a separate entity. Overall the company has posted a relatively muted set of numbers for the quarter."
12. 13 PM: Tata Motors share falls 2%
Tata Motors share was trading lower in early trade ahead of the firm's Q2 earnings to be announced today. Stock of Tata Motors fell 2% to Rs 131 against Rs 133.65 on BSE. The share trades higher than 5 day, 20 day, 100 day and 200 day moving averages but lower than 50 day moving averages.
11. 50 AM:SBI Life quarterly update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," SBI Life reported a good set of numbers for Q2FY21, growth coming back, flat VNB YoY and improvement in operating efficiency continues. however, Margin ted below expectations. New Business premium (NBP) grew at 15.1% YOY for 1HFY21. APE declined by 3.6% YoY due to a 15.3% decline in individual savings business and declined 15% for 1HFY21.
VNB margins improved by ~30bps YoY (10bps QoQ) to ~18.8%, which is lower than expected. Minimal improvement in VNB Margin is primarily led by the protection business. However, a higher contribution from ULIP might limit further upside in 2HFY21. Operating efficiency is best among all listed players, and it continues to improve. During the quarter participating business saw subdued growth, this could be due to lower interest rates. SBI Life currently trades at 2.6x of Q2FY21 Embedded Value (EV), which we believe reasonable considering the gradual improvement in margin profile and benefit of bancassurance for Business growth from SBI."
11. 46AM:Market update
Market indices traded on a bullish note on Tuesday, despite muted global equities. Sensex traded 200 points higher at 40,356 and Nifty gained 70 points to 11,836.
11. 30 AM: Gold gains as coronavirus cases surge
Gold prices traded in green this morning backed by weakeness in dollar and due to concerns over rising corona virus cases across the globe.
In Indian commodity market, gold futures traded above the key psychological level of Rs 50K after 2 days of consolidation. Bullion steadied overseas from recent fall and retreated to $19,00 mark today, as record Covid-19 cases from many countries, including the United States, Russia and France kept demand high of the less risky asset.
11. 15 AM: Coronavirus toll
Worldwide, there were 437 lakh confirmed cases and 11.64 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 79-lakh mark and the death toll from COVID-19 infections rose to 1.19 lakh, as of today.
10.58 AM: Gold outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said,"On Monday, Spot Gold prices gained 0.05 percent to close at $1901.7 per ounce as worries over the pandemic and uncertainties ahead of the upcoming U.S. election boosted the appeal for Gold; however, appreciating Dollar capped the limited the gains. MCX Gold increased by 0.18% and closed at 50930 levels and silver prices corrected by 0.87% and closed at 61906 levels yesterday. Many European nations reinforcing lockdown and coronavirus cases hitting record highs in U.S. dented markets risk appetite and shifted the investors towards the safe haven asset, Gold. U.S. House Speaker Nancy Pelosi continued to hope for a possible deal with President Donald Trumps administration over the relief fund. She also vowed to continue going after a financial aid for the U.S. economy which was shackled by the pandemic irrespective of the outcome of the U.S. elections. Weaker U.S. Dollar amid worries over the implacable virus might drive the investors under the safe haven for gold. As for today traders can go for buy in gold at Rs 51,000 levels with the stop loss of Rs 50700 levels for the target of 51500 levels. They can also go for buy in Silver at Rs 62,000 levels, with the stop loss of 61,300 levels and for the target of 63,300 levels."
10. 43 AM: Kotak Mahindra Bank update
LKP Securities in its note said,"Kotak Mahindra Bank (KMB) reported strong 2QFY20 results with the key pointers being: a) significant improvement in collection efficiencies on month-on-month basis, b) gross slippage came down at Rs2.64bn v/s Rs7.96bn in 1QFY21, as NPA recognition stood still c) sequential credit growth stood positive at 0.4% YoY; with conservative approach of risk aversion, d) sequentially lower cost to income ratio (38.5% v/s 41.7% in the previous quarter) driven by higher profitability and lower opex., e) Decline in provisioning expenses (Rs3.6bn v/s 9.6bn in the previous quarter) led to PAT growth of 75.5% sequentially; the bank has made total COVID provision of Rs12.8bn as of 2QFY21, f) the total contingent provisioning (COVID + Standard + Specific) stood 1.13% of net advances, g) Total PCR (including COVID, general and specific provision) stood above the GNPL amount, g) Headline NIM inched up 18bps QoQ to 4.58% on the back of lower cost of deposits. We believe the bank should grow conservatively with marginal blip in asset quality. With normalization of credit cost, we estimate a ROA/ROE of 1.8%/12.4% in FY22E. Thus, we recommend BUY."
10. 22 AM: Global markets
Asian markets are trading lower taking cues from overnight fell in US markets. Profits at China's industrial firms jumped 10.% YoY in Sep. South Korea's real GDP grew 1.9% in Q3. U.S. markets closed sharply lower as rising coronavirus cases and uncertainty over the relief stimulus package casted shadow over the outlook for economic recovery. European markets closed lower as surging coronavirus cases across US and Europe weighed on sentiment.
10.00 AM: Nifty technicals
On markets today --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The Nifty went below the crucial 11750 support level upon opening but has reclaimed the 11800 mark. It is imperative it keeps above 11750 otherwise the sell side of the market can be threatened. On the upside 11900-11950 is the resistance point. For any upside to resume, we would need to get past that level."
9. 51AM: Market outlook
Geojit Financial said in ite note," The directional breakout that we were seeking yesterday evolved, but having come close to the 15Oct low, without penetrating it, a pull back higher would be the first favoured move today. Such a move ideally aims for 11845, before bears re appear and weigh the prospects of 11300 or 10500. This view will be in reckoning in the coming days, but is less favoured now. Meanwhile, a successful push above 11845-11868 could revive the upside view."
9. 30 AM: Global markets
Asian stocks were mostly trading in red, tracking weak cues from Wall Street soaring global coronavirus cases and shrinking hopes for a U.S. stimulus deal before the election.
European equities fell on Monday as the resurgence in the rise of COVID-19 cases caused concerns of a fresh set of lockdowns, reducing economic activity further. In Europe, Spain announced a state of emergency, while France registered a record increase in infections over the weekend. Italy ordered bars to close early and shut public gyms in a bid to stem a resurgence of the second wave of cases through Europe.
9. 22 AM: Stocks to watch today on October 27
SBI, HDFC Bank, NTPC, IDBI Bank, SpiceJet, Cummins among others are the top stocks to watch out for in Tuesday's trading session
9. 11 AM: FII action
Foreign portfolio investors (FPIs) sold shares worth Rs 119.42 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 979.16 crore in the Indian equity market on 26 October, provisional data showed.
9.00 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.
Bharti Airtel, Tata Motors, Amara Raja Batteries, Castrol India, Ceat, ICICI Prudential Life Insurance Company, JM Financial, Man Industries, Mangalam Organics, Nippon Life India Asset Management, Sanofi India, SKF India, Suven Life Sciences and VST Industries among others are scheduled to announce their September quarter results today.
8.50 AM: Market outlook
As per Reliance Securities, NSE-NIFTY resumed its southward journey post multiple indecisive formations. Yesterday, weakness across the globe dragged the index to 6-days low. Due to another strong bearish formation on the daily chart, its key technical indicators turned in favor of bears. As mentioned earlier, our near-term bearish stance will remain intact and we continue to believe that a sustainable move below its crucial support point of 11,661 mark confirm the short-term bearish reversal and. That could drag the index towards 11,400 and 11,200 levels subsequently. On the higher side, its psychological hurdle point-12,000 level will cap the up-move.
As for the day, support is placed at around 11,672 and then at 11,576 levels, while resistance is observed at 11,903 and then at 12,039 levels.
8. 40 AM: Rupee closing
On the currency front, Indian rupee depreciated 23 paise and settled at 73.84 per US dollar on Monday amid muted domestic equities and strong American currency. On Friday, the Indian Rupee slipped 7 paise to settle at 73.61 per US dollar
8. 30 AM: Closing
Market indices ended majorly negative on Monday, amid weak cues from Asian and European equities. Sensex ended 540 points lower at 40,145 and Nifty fell 162 points lower at 11,767.