Share Market update: Sensex closes above 40,000 for first time in five months, Nifty at 11,849; SBI, TCS, ITC top gainers

Share Market Update: Indian equity markets on Tuesday traded majorly bullish after an extended three-day weekend, with Sensex and Nifty ending 1.40% each, amid strong global equities. While Sensex closed 581 points higher at 39,831 level, Nifty ended 159 points higher at 11,786 mark. On the sectoral front, except media, all the other indices ended in the green, with over 4% rise recorded in Auto and metal stocks, followed by 1% hike in IT, energy, CPSE, commodities, PSU banks and pharma scrips. Broader Asian markets also rose amid buoyed investor sentiment over U.S.-China trade deal optimism and fed rate cut hopes.

Share Market Update: Sensex ends 581 points higher, Nifty at 11,786; Auto indices gain 4%

Foreign institutional investors remained net buyers in the capital markets, putting in Rs.876.64 crore on Tuesday, exchange data showed.

Rupee started with the loss of 5 paise on expectation of month end dollar demand from importers and stronger dollar index.


On Tuesday, Rupee closed higher by 5 paise to 70.84 amid foreign fund flows in domestic equity market and lower crude oil prices.

Rupee vs Dollar: Rupee trades lower at 70.95 amid strengthening dollar

Stocks pulled back Tuesday afternoon after a Reuters report that a "phase one" trade deal may not be ready
for signing by the time President Trump and President Xi Jinping meet next month in Chile.

U.S. administration official said on Tuesday that an interim trade agreement might not be completed in time for signing in Chile next month as expected, while adding that did not mean the accord is falling apart. (Reuters)

The Federal Open Market Committee (FOMC) the policy making arm of the U.S. Fed will announce its rate decision today at 2 PM ET. The central bank's rate decision will come after the publication early Wednesday of U.S. GDP data which is expected to show a further slowdown in the third quarter

Telecom stocks rose early in the trade after media reports suggested that the Governement has formed a Committee of Secretaries (CoS) to find out ways to reduce financial stress in the telecom sector. The panel, formed under Cabinet Secretary Rajiv Gauba, will suggest ways to make a favourable environment for investment in the sector struggling to keep up revenue.

BSE Telecom was trading 2.05% higher, with Vodafone Idea rising 8% higher intraday, Bharti Infratel 3.45% and Bharti Aitel rising 3% higher intraday. This was followed by 2.9% hike in Reliance Communications intraday.



The government's decision to form a committee comes a few days after the Supreme Court upheld the Department of Telecom's definition of Adjusted Gross Revenue basis which it calculates levies. The apex court also asked telcos to pay up Rs 92,641 crore to the DoT over the 16-year-old AGR dispute, which could impair the financial situation of incumbents battling the prolonged tariff wars and high-debt burden.


 

Benchmark indices Sensex and Nifty are trading at record levels today after yesterday's rally. The Sensex had hit an all-time intra-day high of 40,312 on June 4 this year. On Tuesday, benchmark indices ended over 1.4% higher after the media reports suggested that PMO with consultation with the Finance Ministry's Revenue Department and NITI Aayog, is reviewing the existing structure of Long Term Capital Gains (LTCG) tax, the Securities Transaction Tax (STT) and Dividend Distribution Tax (DTT). Sensex closed 581.64 points higher at 39,831.84 and Nifty gained 159.70 points to 11,786.



Sensex gains 582 points, Nifty closes above 11,750: Key factors that drove the rally

Top gainers in the Sensex pack included Bharti Airtel, L&T, Infosys, ITC, Vedanta, HDFC Bank, Bajaj Auto, Kotak Bank and Sun Pharma rose up to 2%. On the other hand, Tata Motors, Yes Bank, IndusInd Bank, Tata Steel, ICICI Bank and TCS fell up to 3%.

Sectorally, except auto, metal and pharma stocks, all the other indices traded in the green, with 2% rise in PSU bank stocks, followed by marginal gains in banking and IT stocks.

 

Shares of Bandhan Bank fell 4.76% to the day's low of Rs 593.8 as the Reserve Bank of India (RBI) on October 29 imposed a penalty of Rs 1 crore on Bandhan Bank for not bringing down the promoter shareholding to 40%.

RBI imposed the penalty on account of failure to pare the shareholding of Bandhan Financial Holdings Ltd to 40 percent of its paid-up voting capital, within three years from commencement of the business of the bank, the lender said in a BSE filing.

 

Share price of BEML Limited, previously Bharat Earth Movers Limited, rose 9.87% to the intraday high of Rs 1,108.2 , also hits 52-week high on the BSE over reports that the government has started the divestment process for BEML and is likely planning strategic stake sale from the state-owned commercial vehicles' company.

As per reports, the government could soon invite Expression of Interest (EoI) by late November or early December to reduce its stake by nearly 26% in the company.

Global equities traded down as expectations the Federal Reserve rate cut hope was offset by a potential delay in a U.S.-China trade deal, which clouded sentiment and weakened the dollar.

The benchmark index U.S. S&P 500 index had breached its all-time high set in July on Monday, spurred by hopes of a U.S.-China trade deal and Fed rate cut optimism amid traders

Oil prices fell on Wednesday, with Brent crude trading down 18 cents, or 0.3%, at $61.41 a barrel, as a possible delay in resolving the U.S.-China trade war coupled with a drop in U.S. crude inventories shadowed investors sentiments.     

 

Stock price of Interglobe Aviation opened with a gain of 3.1% today and rose 5.55% intarday to Rs 1,488.55 after the airline announced that it has placed an order for 300 Airbus A320neo family aircraft worth more than $30 billion at list prices.

Announcing the firm order to purchase 300 more aircraft, IndiGo on Tuesday said it would be "one of Airbus' largest aircraft orders ever with a single airline operator".
 
 

Cochin shipyard shares rose 4% intraday to Rs 408.35 on the BSE after the company announced it has signed agreement with Kochi Metro Rail for order of design and construction of 23 hybrid-electric passenger ferries valued at Rs 175.7 cr.

Corporate Affairs Ministry will soon order the Serious Fraud Investigation Office (SFIO) to probe into the alleged financial irregularities at the troubled housing finance company (DHFL), an official source told IANS on Tuesday.

As per sources, the ministry is currently studying the report that points to fund diversion and siphoning indicating enough concrete evidence of financial irregularities by DHFL and will very soon refer it to the SFIO for further action.

DHFL shares earlier fell to the a new low of Rs 15.15 today with the opening bell, altough rose later almost 5% to the day's high of Rs 16.65 on the BSE.



 

The equity benchmark indice Sensex has crossed 40,000 mark at a 220 points rise, while Nifty is currently hovering near 11,850 level.

According to Sandeep Nayak, ED and CEO of Centrum Broking, a proposed review of key taxes such as long term capital gains (LTCG), securities transaction tax (STT) and dividend distribution tax (DTT) before the budget has added impetus to domestic investor sentiment.

However, gains were capped as investors also took cues from weakness in other Asian equities amid reports of a possible delay in the US-China trade deal, traders said. Market is also awaiting cues from US Federal Reserve's policy decision, scheduled to be announce later in the day.

Shares Petronet LNG rose over 6% in the early trade on Wednesday after the energy company reported nearly doubling of net profit in September quarter on the back of improved margins.

The share price of Petronet LNG opened with a gain of 3.87% today at Rs 290.00, against the previous close of Rs 279.20. Later the stock price climbed overall 6.38% to the day's high of Rs 297. 

Net profit reported was 90% higher at Rs 1,089 crore in July-September than Rs 572.89 crore net profit in the same period, while its revenue from operations slipped to Rs 9,361.18 crore from Rs 10,745.34 crore in the second of the previous fiscal year.

"The company elected to exercise the option of a lower tax rate of 25.17% (announced last month by the government)," the company said in a regulatory filing.

Petronet LNG added later that its board of directors approved a special interim dividend of Rs 5.50 per share for 2019-20 fiscal year.

Listed companies that are due to release their September quarterly earnings today are namely  Container Corporation of India,  JK TYRE, Tata Global Beverages, United Bank Of India, Tata Chemicals, Quess Corp, Graphite India, Heritage Foods, Indoco Remedies, OnMobile Global, PTC India and Sonata Software.

 

Central Bank of India shares opened with a gain of 5.29% today and later rose almost 16% to the intraday high of Rs 20.8 on the BSE, after the lender's capital raising committee of the board of directors approved raising of equity capital by way of preferential allotment aggregating to Rs 3,353 crore. While 'Public Banks' sector has gained by 3.62%, the Central Bank of India stock has outperformed the sector by 7.16%.

The issue includes the allotment of upto 158,38,45,063 equity shares of the face value of Rs 10 each at the issue price of Rs 21.17 per equity share including premium of Rs 11.17 per equity share to President of India (Government of India) on preferential basis, company said in the regulatory filing.