Comments
Closing Bell
Stock market indices fell steadily from the morning session and ended in the negative territory on the back of sustained selling amid lack of enough buying support from investors and traders alike Market participants turned cautious as optimism waned over upcoming trade talks between the US and China.
The BSE benchmark Sensex declined 297.5 points and ended at 37,880.40. It ended yesterday at 38,177.95.
The Nifty, on the NSE, too fell 78.75 points to 11,234.55.
Sectoral indices such as Banking, Auto, Financial Services, Pharma, Media and Metal lost in a range between 1 per cent and 3 per cent.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 485.24 crore on Wednesday, according to provisional exchange data.
RIL stock climbs 2.75%
Shares of Reliance Industries climbed 2.75% today after the refiner would soon resume loading Venezuelan oil in October after a four-month pause, a move that could help the state-run Venezuelan firm drain its high oil inventories.
The RIL stock closed at Rs 1,362.40, up by Rs 36.75 or 2.75% on the BSE.
Bharti Airtel, Vodafone Idea surge on RJio move to charge IUC
Shares of Bharti Airtel touched a 52-week high of Rs 384.85, before closing at RS 377.40, up by 5% on the BSE. Similary, shares of Vodafone Idea added nearly 6 per cent and ended at Rs 6.18.
The movement followed Reliance Jio's announcement that it would charge an Interconnect Usage Charge (IUC) from customers for calls made to the other networks.
On Wednesday, in an unprecedented move RJio decided to charge 6 paise per minute for calls to rival networks.
NIFTY SECTORAL INDICES
Nifty sectoral indices
Nifty call
Nifty 50 October Futures (11,245):
Sell on rallies with stop-loss above 11,320...
Bharti Airtel , Vodafone Idea surge on RJio move to charge IUC
Shares of Bharti Airtel touched a 52-week high of Rs 385, gaining 7 per cent on the NSE. Similary, shares of Vodafone Idea added 6 per cent today.
The movement followed Reliance Jio's announcement that it would charge an Interconnect Usage Charge (IUC) from customers for calls made to the other networks.
On Wednesday, in an unprecedented move RJio decided to charge 6 paise per minute for calls to rival networks.
Related Stories
RJio’s decision to charge users for IUC may be followed by tariff hikes: Brokerage firm Emkay
Related Stories
RJio to charge 6p/min for calls to rival networks
Blames the move on regulatory uncertainty over Interconnect Usage Charge
Indiabulls Housing Fin, Lakshmi Vilas Bank hit 52-week lows
Shares of Indiabulls Housing Finance (IBHF) and Lakshmi Vilas Bank (LVB) plummeted up to 20 per cent on Thursday, after the Reserve Bank of India rejected their merger proposal.
Gail India (₹127.5): Sell
The stock of Gail India had slumped 3.7 per cent in today’s session witnessing selling interest. It has breached a key short-term support at ₹130 as well as 50-day moving average level.
Related Stories
Q1 results: GAIL’s profit after tax up by 15 per cent
GAIL’s PAT was Rs 1,288 crore in the first quarter of 2019-20
Related Stories
GAIL on a slippery slope
A rally above the ₹160-165 zone is needed to alter the short-term downtrend and take the stock up to ₹185
Broker's call
Reliance Securities
Jubilant FoodWorks : Reduce
CMP: Rs 1,320
Target Price: Rs 1,050
Domino’s Pizza Inc reported its Q3CY19 earnings, below expectations. the chain of restaurants operating in the similar space indicates that Q2FY20 saw sequential decline in Same-Store-Sales (SSS) growth with some volume up-tick during Navaratri festival.
The foray of Amazon and Dunzo into food delivery business is an added disruption to the delivery moat of Jubilant FoodWorks. Taking cues from its performance of international operations, we do not expect JUBI to report beyond 5-6% SSS growth in 2QFY20. FY20E is expected to be the year of moderation in SSS with higher investments across the businesses.
Slower headline growth is likely to keep operating margin under pressure, which may further lead to download trajectory of RoE. Such scenario is likely to keep the valuation multiples under check.
At current market price, Jubilant Foodworks trades at 45x of FY21E earnings. Valuing at PE multiple of 36x FY21E, we reiterate our recommendation to reduce the holdings on the stock with an unrevised Target Price of Rs 1,050, which implies 20% downside from the current level.
Domino’s Pizza Q3CY19 Earnings – Key Highlights
US SSS grew by 2.4% YoY vs. expectation of 2.8%, while International SSS grew by 1.7% YoY vs. consensus expectation of 2.9%.
Domino Pizza announced new 2-3 year outlook (vs. earlier 3-5year) given faster changing market dynamics and uncertainty arising from new entrants into quick service food delivery segment.
Sales growth range for the next 2-3 years is seen at 7-10% (from 8-12% earlier). US SSS growth guidance now stands at 2-5% (from 3-6% earlier) and international SSS growth is seen 1-4% (. from 3-6% earlier).
The revised guidance in international markets reflects longer-than-expected weakness in some of the key markets.
Thus, the company has lowered its outlook than envisaged earlier mainly driven by the ongoing competitive intensity.
As per the estimate, India retail sales account for 7-8% of Domino Pizza’s total international retail sales (US $6,953, as on December 2018). Notably, India has the highest stores among the Top-10 international markets for the company.
Nifty Bank chart
Nifty Chart Oct 10, 2019 at 12.15 pm
Crude prices slip as hopes for progress in US-China trade talks fade
Oil prices slid on Thursday as hopes faded for any significant progress in US-China trade talks that could dispel clouds over the global economy and gloom over prospects for weaker oil demand.
File Photo
DII Investment data
DII Investment data
Source: Dalmia Securities
FII INVESTMENTS
FII investments data
Source: Dalmia Securities
Broker's call
ICICI Securities
Intra-day future recommendation
Sell ITC in the range of | 250.50-251.50
RIL shares gain 2.60%
Shares of Reliance Industries climbed over 2.50% today after the refiner would soon resume loading Venezuelan oil in October after a four-month pause, a move that could help the state-run Venezuelan firm drain its high oil inventories.
The RIL stock rose 2.60% at Rs 1,359 on the NSE today.
Related Stories
Why Reliance Jio's move to hike voice call tariffs is good news for other telecom players
Airtel, Vodafone-Idea are expected to gain the most
Moody's cuts India's growth forecast to 5.8 per cent for FY20
International rating agency Moody's on Thursday announced the lowering of India's Gross Domestic Products (GDP) growth to 5.8 per cent.
Torrent Pharma shares drop 2.60% on US FDA warning
Drug firm Torrent Pharmaceuticals stock dropped 2.60% today after the company had said it received a warning letter from the US health regulator for its Indrad facility in Gujarat. This action by the (USFDA) follows earlier intimation received from the regulator in August 2019, wherein the agency had classified its inspection as "Official Action Indicated" (OAI).
Torrent Pharma was down 2.60% at Rs 1,623 on the BSE. Volumes traded in the counter were 41,000 shares against the 2-week average quantity of 7,517.
Related Stories
Torrent Pharma expands recall of hypertension drug in US
Expanding recall for Losartan potassium tablets USP and Losartan potassium / hydrochlorothiazide tablets to the consumer level
Broker's Call
Geojit Financial Services
Ujjivan Financial Services Ltd : Reduce CMP: Rs. 299
Target Price: Rs. 276
As per the Small Finance Bank licensing condition of the Reserve Bank of India, UFSL needs to undertake a separate listing of the Ujjivan Small Finance Bank (USFB) by January 2020.
Though solid performance continues (as seen in Q1FY20 with 51% YoY growth in loans & advances and 79% YoY growth in net income, along with improvement in asset quality), the separate listing of Ujjivan Small Finance Bank will be negative for the current shareholders, as it will ultimately lead to a considerable holding company discount and dilution.
Related Stories
Ujjivan to dilute promoter stake by 10-15%
The SFB may do a re-think on listing if market conditions remain volatile
IRCTC IPO: How to check your allotment status
You can check your position in ipo.alankit.com anytime soon using your PAN and application number details.
While IRCTC IPO could fetch about Rs 500 crore, public offering of IRFC could garner close to Rs 1,000 crore.
Better linkage between spot and futures markets will bring more participants: BSE CEO
In an interview with BusinessLine , Ashishkumar Chauhan, Managing Director and CEO, BSE, shares his views and vision for the exchange’s commodity play. Excerpts:
What to watch: Eyes on TCS, IndusInd, GM Breweries results
IT behemoth Tata Consultancy Services, California Software Company, private banking major IndusInd Bank and GM Breweries will declare their July-September quarterly results on Thursday. IndusInd Bank and TCS will set the direction not only for the respective sectors
TCS has been trying to re-imagine hiring in order to attract top talent istock
RBI shoots down Indiabulls-LVB merger
The RBI on Wednesday rejected the proposed amalgamation of lndiabulls Housing Finance Ltd and lndiabulls Commercial Credit Ltd with Lakshmi Vilas Bank (LVB) .
Related Stories
What the merger with Indiabulls Housing Finance would have meant for Lakshmi Vilas Bank
Related Stories
Why has Lakshmi Vilas Bank fallen by more than 50 per cent over the past year?
Deteriorating finances and the RBI placing it under PCA suggest more pain ahead for the bank
Related Stories
Indiabulls Housing profit drops 40 per cent at Rs 579 crore
IBHFL’s loan assets declined 10 per cent y-o-y to Rs 1,13,189 crore
Related Stories
Will RBI approve LVB, Indiabulls Housing merger?
Presence of RBI nominee directors on LVB board doesn't imply automatic approval: apex bank
TOP GAINERS ON BSE
TOP GAINERS ON BSE
VOLUME GAINERS ON BSE
Spurt in volumes on BSE
Rupee wipes off early gains against dollar, but still holds firm
The rupee appreciated by 20 paise to 70.87 against the US dollar in early trade on Thursday, as easing crude prices and optimism regarding US-China trade talks strengthened investor sentiments.
Sensex, Nifty slip in early trades after yesterday's rally
The BSE benchmark Sensex declined over 199 points in early trades today as optimism started waning across Asian markets over upcoming trade talks between US and China.
After opening lower at 38,130.23, the Sensex steadily fell further to a low of 37,978.86, before being quoted at 38,076.43, down by 101.52 points from its previous close.
The Nifty, on the NSE, too fell by 30.05 points to 11,283.25.
Sectoral indices such as Banking, Auto, Financial Services, Pharma, Media and Metal lost between 0.50 per cent and 2 per cent. However, IT sector bucked the overall weak movement and scored 0.55% gain at 15,213.15.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 485.24 crore on Wednesday, according to provisional exchange data.
NIFTY SECTORAL INDICES
NIFTY BANK STOCKS
NIFTY AUTO STOCKS
Wall Street gains on trade optimism, but Beijing tempers hopes
Wall Street rose on Wednesday on hopes of progress in US-China trade talks, though stocks pared gains late after Chinese officials said Beijing had lowered expectations for negotiations this week.
File Photo
What to watch: Century Textiles to turn ex-date for de-merger
The shares of Century Textiles & Industries will turn ex-date on Friday for the proposed de-merger. The company will hive off its cement division and merge it with UltraTech Cement
What to watch: USFDA nod may buoy Cadila Healthcare
Cadila Healthcare Ltd on Wednesday said it has received the final approval from the US heath regulator (USFDA) to market generic cholesterol-lowering Colesevelam Hydrochloride tablets
Related Stories
Cadila Healthcare: In bad shape - Sell
USFDA observations on contamination at a plant, and lack of near-term blockbuster products have taken a toll on the stock
Day Trading Guide for October 10, 2019
Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading in stocks such as HDFC Bank, Infosys, ITC, ONGC, Reliance Ind and Nifty 50 futures.
Asian stocks recover but anxiety over trade talks lingers
Global stocks recouped early losses as news reports raised hopes that the US and China would settle some economic disputes, but investors were kept on edge by an earlier report that trade talks due to begin on Thursday could be cut short.
Cipla (₹423.5)
Investors with a short-term perspective and contrarian view can buy the stock of Cipla at current levels
MF asset slips 4% in September as inflow into equity, debt fund slows down
The asset under management of mutual fund industry was down 4 per cent last month at Rs 24.50 lakh crore against Rs 25.48 lakh crore logged in August largely due to outflow from liquid funds and inflow into equity funds dipping to four-month low.
9 am
Pre-Open session
The BSE benchmark Sensex declined 47.72 points at 38,130.23 and the Nifty, on the NSE, was down 32.80, at 11,280.50
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.