Sensex up 247 points; Infosys, Cipla, Vedanta top gainers

11 Oct 2019

Rupee Closing

The Indian rupee ended at 71.02 against the US dollar, up 5 paise compared to Thursday's close of 71.07.

The currency fell 0.2 percent against dollar this week.

Technical View

"The short term trend of Nifty is volatile with positive bias.The upper area of 11,400 is currently acting as a stiff resistance for the market," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

"We are unlikely to see any sharp upmove for the next week, there is a higher possibility of sell on rise opportunity in the next week.Inability to sustain above 11,400-11,450 levels could eventually drag Nifty down towards 11,100 again in the next few weeks," he added.

Market Outlook

"Markets will first react to the Infosys numbers in early trade on Monday. Besides, the news related to the US-China trade talks will also be closely watched. We’re still seeing mixed indications thus expect further consolidation in the index. At the same time, excessive volatility on the stock-specific front would be hard to tackle. We suggest limiting naked leveraged positions and waiting for some stability," Ajit Mishra, Vice President - Research at Religare Broking said.

Aurobindo Pharma hits 5-year low

Shares of Aurobindo Pharma fell more than 6 percent intraday on October 11 after its promoter created a pledge earlier this week.

K Nityananda Reddy created a pledge on its 7.85 lakh shares (respresenting 0.13 percent of total paid-up equity) on October 9, taking total pledged shares to 58 lakh or 0.99 percent of total paid-up equity.

“Pledge creation – on shortfall of security for the existing loans due to fall in share price,” company reasoned in its BSE filing.

Infosys jumps 5% ahead of September quarter earnings

Shares of Infosys rallied 4.7 percent intraday on October 11 ahead of its September quarter earnings scheduled to be announced later today.

Brokerages expect the IT major to report sequential growth across its parameters. They expert more than 4 percent rise in Q2 profit and 3.5 percent increase in constant currency (CC) revenue compared to the previous quarter, partly supported by Stater acquisition and strong deal wins.

Cipla rebounds 4% as management alleviates concerns on Goa unit observations

Cipla rebounded more than 4.5 percent intraday on October 11 after management clarified on Goa unit inspection, saying there are no data integrity and repeat observations.

But the clarification from management over observations helped the stock recover more than 13 percent from day's low of Rs 389.55. It was quoting at Rs 439, up to Rs 16.75, or 3.97 percent on the BSE at 1350 hours IST.

"Site at Goa has about 10 units just to clarify across various dosage forms. If you read the 483 document there are no data integrity-related observations, no repeat observations there. We would not read too much into the number of observations. We still have some time to respond to them (US FDA). It should be soon," Kedar Upadhye, Joint President and Global CFO, Cipla told CNBC-TV18.

Oil surges 3% on supply worries

Crude oil futures surged 2.85 percent in intraday trade amid worries over supply from crucial oil producing regions after Iranian news agencies said a state-owned oil tanker was struck by two missiles in the Red Sea near Saudi Arabia.

October crude oil futures traded at Rs 3,883 per barrel on the MCX at 14:18 hours IST, up 2.59 percent or Rs 98 over its close on October 10.

International benchmark Brent crude futures rose as much as 2.3 percent to $60.46 a barrel and stood at $60.33 per barrel, up 2.08 percent, and US West Texas Intermediate (WTI) crude futures traded at $54.62 a barrel, up two percent, at the time of publishing this copy.

Indian Terrain Fashions stock up 6% after ICRA's rating upgrade

Shares of Indian Terrain Fashions jumped over six percent in intraday trade on October 11 buoyed by a rating upgrade by ICRA. The agency had assigned a long-term rating of 'ICRA A-' with a stable outlook and a short-term rating of 'ICRA A2+' to the Rs 60 crore lines of credit (LOC) to the company, Indian Terrain said in an exchange filing.

ICRA said it expects the company’s performance to remain steady, supported by its established presence and ongoing efforts to expand in non-south markets and reduce its receivables.

Bandhan Bank surges 20% on likely MSCI Index entry

Bandhan Bank gained 20 percent intraday on October 11 amid reports that the stock could be added to the MSCI Index in the coming week. Gruh Finance, which merged with the private sector lender, also climbed 20 percent.

Bandhan Bank could be added to the MSCI Index from October 16 following its acquisition of Gruh Finance. The National Company Law Tribunal had approved the merger in September and the record date was fixed as October 17 for determining the shareholders of Gruh Finance who will be entitled to equity shares of the bank.

The bank will issue and allot 568 equity shares for every 1,000 shares held by Gruh shareholders.

Passenger vehicle sales drop 24% in September

Domestic passenger vehicle sales dropped by 23.69 per cent in September to 2,23,317 units, down from 2,92,660 units in the year-ago period, making it the 11th consecutive month of decline in vehicle off-take.

Domestic car sales were down 33.4 per cent to 1,31,281 units last month as against 1,97,124 units in September 2018, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Friday.

Motorcycle sales last month declined 23.29 per cent to 10,43,624 units as against 13,60,415 units a year earlier. Total two-wheeler sales in September declined 22.09 per cent to 16,56,774 units compared to 21,26,445 units in the year-ago month.

Indiabulls Ventures climbs 8% after board clears share buyback

Indiabulls Ventures rallied 8 percent in early trade after the board approved a buyback of 6.67 crore shares at Rs 150 per share at a meeting on October 11.

"The board approved a buyback of up to 6,66,66,666 fully paid-up equity shares having face value Rs 2 each of the company, representing 12.61 percent of its total existing fully paid-up equity at Rs 150 per share, through the tender offer route," Indiabulls Ventures said in its BSE filing.

Explosion sets Iran-owned oil tanker on fire near Saudi port city:

An explosion has set an Iranian oil tanker on fire near the Saudi port city of Jeddah, Iran's Students News Agency ISNA reported on Friday, adding that experts believed it was a "terrorist attack".

An explosion in an oil tanker that belongs to National Iranian Oil Company has set the vessel on fire 60 miles from the Saudi port city of Jeddah. The explosion has caused heavy damages and oil is spilling in the Red Sea, unnamed sources told ISNA. "Experts believe it was a terrorist attack."

Buzzing stock: Shares of Eveready Industries spiked 4 percent intraday on October 11 after the country’s largest dry-cell battery maker completed the sale of its land parcel in Chennai for Rs 100 crore to Alwarpet Properties. The stock also touched the upper circuit of Rs 44.15 per share.

Nifty Metal outperforms led by Vedanta & Tata Steel, stocks jump 3-4%

Indian markets have opened on a positive note with Sensex up 300 points while the Nifty is trading above the 11,300 mark. About 779 shares have advanced, 340 shares declined, and 50 shares are unchanged.

Metal stocks are shining in this morning session with the index outperforming all other sectors. Nifty Metal gained over 2 percent led by Vedanta and Jindal Steel & Power which jumped over 4 percent each followed by Tata Steel, JSW Steel, Coal India and Hindustan Zinc.

SBI brings back processing fee on home loans prior to festive waiver period:

State Bank of India (SBI) is bringing back processing fees on home loans, top-up plans and corporate and builder loans, as per a Times of India report.

In an internal circular, SBI informed that the full waiver of the consolidated processing fee, which was to last through the festive period till December, has been withdrawn.

Rupee at one-week high, opens 24 paise up at 70.83 per dollar

The Indian rupee opened 24 paise higher at 70.83 per dollar on October 11 and rose to a one-week high at 70.81 as the greenback weakened against its global peers.

The dollar slid to two-week lows on Thursday, with safe-haven demand for the currency waning as investors grew optimistic about progress towards a US-China trade deal and agreement on Britain's exit from the European Union, reported Reuters.

Oil price update: Oil prices rose on Thursday, buoyed by comments by the head of OPEC that the organization could take action to balance oil markets and will decide in December on supply for next year.

Global benchmark Brent crude futures settled up 78 cents or 1.3 percent at $59.10 a barrel.

Asian Markets: Asian shares and US stock futures rose on Friday after US President Donald Trump said he would meet with China’s top trade negotiator, while sterling retreated after rallying on revived hopes of a possible Brexit deal.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, following on from gains on Wall Street. Australian shares climbed 0.8 percent, while Japan's Nikkei stock index gained 0.9 percent.

US Markets: US stocks rose on Thursday on hopes that top-level US-China trade talks would yield at least a partial deal, while a jump in Apple’s shares also boosted the market.

The Dow Jones Industrial Average rose 150.66 points, or 0.57 percent, to 26,496.67, the S&P 500 gained 18.73 points, or 0.64 percent, to 2,938.13 and the Nasdaq Composite added 47.04 points, or 0.6 percent, to 7,950.78.

SGX Nifty update: Trends on SGX Nifty indicate a positive opening for the broader index in India. Around 0800 hours IST, SGX Nifty was 21 points, or 0.18 percent, up at 11,282.