Share Market Update: Sensex ends 87 points higher, Nifty at 11,329; PSU bank erases gains

IRCTC has hiked almost 80% on its listing day, with a whopping share value of Rs 570, from the earlier issue listing price of Rs 250 for its entry in the secondary market as a lister PSU enterprise.
 

Shri Mahendra Pratap Mall, CMD, @IRCTCofficial speaking at listing ceremony of @IRCTCofficial on 14th October, 2019 at @BSEIndia #IRCTC pic.twitter.com/TMnTJu6xnB

— BSE India (@BSEIndia) October 14, 2019

Events today

IRTC IPO listing into the secondary market,

FM Sitharaman to meet PSU Banks heads,

India CPI data

Hindustan Unilever and Delta Corporation are among the companies to post their quarterly earnings today.

Share Market LIVE: Equity benchmark indices started marginally higher on Monday, on back on mixed global and domestic cues. Globally, equity stocks traded positive on account of reduced trade tensions between US-China.

  US stocks closed higher after Trump said US has trade deal with China that will come in phases.  US Futures (Dow Jones) trades at 26841 up 66 points or 0.25%. Asian markets trade higher, with SGX Nifty flat with positive bias at 11,319.50, up 10.5 points.  Brent crude at $60.25/bbl and later traded 0.24% lower at 60.27 on expectation of trade deal between US-China while gold prices hiked 1.30 to $1,480.

Share Market LIVE: Equity benchmark indices trade higher on Monday, on back on positive global and domestic cues. Amid improved investor sentiments, markets opened on a positive note on Monday, backed by reduced trade tensions after a partial US-China trade deal. While BSE Sensex currently trades 85 points higher 38,210 level, Nifty50 is advancing 25 points up to 11,330 mark.

Adani Gas shares, top gainer on NSE and BSE today, rose 18% intraday to Rs 162.4 as the company announced a JV with French energy giant Total SA.

Total SA  would buy a 37.4% stake in the Indian gas distribution company. Total will buy up to 25.2% in Adani Gas from public shareholders at 149.63 rupees per share, valuing the stake at 41.47 billion rupees and the remaining 12.2% from Adani Family.

Adani and TOTAL have signed definitive agreements for a City Gas Distribution for an investment in infrastructure and assets of Adani Gas worth over US$1 billion, which span Liquefied Natural Gas (LNG) infrastructure and marketing and fuel retail business.

Total's acquisition of joint control in Adani Gas will help accelerate Adani Gas's target to  serve 7.5% of India's population across 38 geographical areas across India.

Total will purchase 37.4% shares in Adani Gas Limited through a tender offer to public  shareholders to acquire  up to 25.2% shares subject to applicable regulations and purchase the residual shares from Adani Family. Adani Family and TOTAL SA shareholders shall ultimately hold 37.4% each and public shareholders shall hold remaining 25.2%.

Speaking on the occasion, Adani Group Chairman, Gautam Adani said, "Total's investment  in  Adani Gas reinforces India's natural gas and demand potential. The partnership will derive significant synergies between Adani's capabilities of developing  world-class assets and  Total's global best practices as well as leveraging business synergies across LNG, Fuel Retail and City Gas distribution."

Adani Gas shares soar 18% as French energy firm Total agrees to buy 37.4% stake

Net investment of equity and debt reported by foreign portfolio investors (FPIs) turned positive last Friday, with net buying logged at Rs 749.74 crore from Indian equities while domestic institutional investors (DIIs) turned net sellers taking out Rs 703.02 crore

 

India's growth rate is projected to fall to 6 per cent, the World Bank said on Sunday. In 2018-19, the growth rate of the country stood at 6.9 per cent. In 2018-19, it stood at 6.8 per cent, down from 7.2 per cent in the 2017-18 financial year.

The bank in its latest edition of the South Asia Economic Focus said the country was expected to gradually recover to 6.9 per cent in 2021 and 7.2 per cent in 2022 as it assumed that the monetary stance would remain accommodative, given benign price dynamics.

While industrial output growth increased to 6.9 per cent due to a pick-up in manufacturing and construction activities, the growth in agriculture and the services sector moderated to 2.9 and 7.5 per cent, respectively.

(PTI)

Signs of progress in the Sino-U.S. trade standoff whetted risk appetite and strengthened investor sentiments when U.S. President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike.

On Friday, Trump administration agreed for freezing new tariffs against Chinese goods worth $250 billion. Beijing in return would purchase $40-$50 billion worth of American farm products. 

Infosys shares have opened with a gap down at 3.27 % and fallen 4.25% intraday to Rs 781 on the BSE, despite the company reported inline with estimates second quarterly figures on Friday.

Sun Pharma rose 2.42% intraday to the day's high of Rs 395.65 as the pharma enterprise press released launch of CEQUA, for the treatment of dry eye disease in the US.

Sun Pharma announced that one of its wholly-owned subsidiaries has commercialized CEQUA (cyclosporine ophthalmic solution) 0.09% in the U.S. CEQUA, which offers the highest concentration of cyclosporine for ophthalmic use approved by the U.S. Food and Drug Administration (FDA).. Sun Pharma shares trade higher than 5 day moving averages but lower than 20, 50, 100 day and 200-day moving averages

“The U.S. launch of CEQUA, the third product in our growing ophthalmic portfolio, marks the
availability of a truly innovative treatment option for patients with dry eye disease – an area with a high unmet medical need,” said Abhay Gandhi, CEO North America, Sun Pharma.

Share Market LIVE: Equity benchmark indices currently trade higher amid positive global cues and foreign fund inflow. After opening on a volatile note, the 30-share index swung over 200 points in early trade higher at 38,332 level and the broader NSE Nifty rose 34 points to 11,340.

 

Top gainers in the  in early session included Tata Motors, Vedanta, Tata Steel, Sun Pharma, Bajaj Auto, IndusInd Bank, Bharti Airtel, HUL and SBI, rising up to 4 per cent.

On the other hand, Infosys, PowerGrid, TechM, Kotak Bank and TCS fell up to 3 per cent.

Market sentiment remained volatile on Monday amid concerns over an economic slowdown after the World Bank on Sunday said India's growth rate is projected to fall to 6 per cent after a broad-based deceleration in the initial quarters of this fiscal year, traders said.

Markets are also reacting to to industrial output data released Friday evening, they added.

Industrial output declined by 1.1 per cent in August due to poor performance by manufacturing, power generation and mining sectors, official data showed.

Further, wholesale inflation data is scheduled to come on Monday, which may also influence trading, according to analysts.

(PTI)

The Indian rupee appreciated by 28 paise to 70.74 against the US dollar in early trade on Monday as gains in domestic equity market and positive developments on the US-China trade talks front strengthened investor sentiments.


At the interbank foreign exchange the rupee opened at 70.83, then gained further ground and touched a high of 70.74, registering a rise of 28 paise over its previous close.

On Friday, rupee had settled for the day at 71.02 against the US dollar.

The domestic unit, however, could not hold on to the gains and was trading at 70.81 against the dollar.

Rupee vs Dollar: Rupee rises to 70.74 per USD amid US-China trade talks optimism, foreign fund inflows

Metal stocks led gains on Monday, as the Nifty metals rose about 1.1% due to rise in commodity prices post the progress in the Sino-U.S. trade talks.

Indian Railway Catering and Tourism Corporation (IRCTC) share listed with a gain of over 100% compared to its issue price of Rs 320 per share on the bourses today. IRCTC share which saw subscription of nearly 112 times on the last day of initial public offer (IPO) listed at Rs 644 on BSE  and Rs 651 on NSE today. 

IRCTC share listing is the among the most successful entry for a PSU firm in the stock market. Post listing, market capitalisation of the IRCTC stood at Rs 10,736 crore on BSE. At 10:17 am, IRCTC share gained up to 6.94% to Rs 688.75 compared to listing price of Rs 644 on BSE.  

IRCTC IPO was open for subscription between September 30 and October 4. The issue involved sale of 2.01 crore equity shares of face value of Rs 10 each in a price band of Rs 315 to Rs 320.

IRCTC share delivers more than 100% returns on market debut, lists at Rs 651 on NSE

Avenue Supermarts that owns and operates D-Mart stores, fell 2.15% intraday to Rs Rs 1803.55 on the BSE, despite the supermarket chain reporting increase in net profit by 48% for the second quarter on October 12, 2019.

Commenting on the financial performance of the company Neville Noronha, CEO & managing director, Avenue Supermarts quoted," Revenue growth for the quarter was slightly lower than our estimates while gross margin saw improvement over the corresponding period last year due to better revenue mix. PAT margin improvement is in line with revenue growth and also aided by revision in corporate tax rates".

Company's net profit rose 47.7% to Rs 333 crore and increase in total revenue was recorded at 22.1% hike  to Rs 5,949 crore in Q2 September 2019 over Q2 September 2019. The stock trades higher than 20, 50, 100 and 200 day moving averages but lower than 5-day moving averages.

Continuing efforts to increase credit disbursement, Finance Minister Nirmala Sitharaman will meet the heads of public sector banks (PSBs) today to take stock of recent steps taken by the government, including the first phase of the ‘outreach programme’ across over 200 districts during the festive season, a senior government official told Mint.

It is learnt that the minister is expected to review the progress of the partial guarantee scheme to the Non-Banking Financial Company (NBFCs), and other decisions pertaining to Micro, Small and Medium Enterprises (MSMEs) announced less than a month ago.

(HDFC Securities)

Industrial growth shrank 1.1% in August, after a gap of 26 months, reinforcing fears of a slowing economy and deteriorating consumersentiment. Industrial production, as measured by the index of industrial production (IIP) had grown 4.8% August last year.

April-August factory output growth at 2.4% well below 5.3% for the same period in the last fiscal. IIP growth has been lowest in last 81 months(After November 2012) and first contraction after June 2017.
(HDFC Securities)
 

Cadila Healthcare rose 2.26% intraday to Rs 235.3, after the company announced that the US health regulator issued no observations after the inspection of its Dabhasa facility in Gujarat.

The US Food and Drug Administration (USFDA) inspected active pharmaceutical ingredients (API) manufacturing facility at Dabhasa from October 7 to October 11, 2019.

"This was a current good manufacturing practice (cGMP) audit and a pre-approval inspection (PAI). At the end of the inspection, no observation (483) is issued, Cadila Healthcare said.