Sensex ends 291 points higher as auto stocks lead gain

Closing bell

The shares ended higher, led by auto sectors, as investors hoped for further rate cuts from the Reserve Bank of India amid a rise in retail inflation during the last month.

The retail inflation rose close to the RBI's medium-term target of 4 per cent in September for the first time in 14 months, but analysts still predict a sharp economic slowdown will prompt a sixth consecutive interest rate cut in December.

The broader NSE index ended 0.77 per cent or 87.15 points higher at 11,428.30, while the benchmark BSE index closed up 0.76 per cent or 291.62 points at 38506.09.

In the Sensex pack, the top gainers were Vedanta, Mahindra & Mahindra, ONGC, Hero MotoCorp, Maruti and Hindustan Unilever while the laggards were Bharti Airtel, Infosys, Tata Motors, HCL Technologies and Tech Mahindra.

The Nifty Auto index ended 2.23 per cent higher as Eicher Motors closed up 4.69 per cent, while Hero Motocorp , Maruti Suzuki and Mahindra and Mahindra ended firmer between 2.4 per cent and 2.6 per cent. Meanwhile, Bharti Airtel was the top loser in the Nifty, closing 2.5 per cent weaker, followed by Infosys, which ended down 2.3 per cent.

Elsewhere in Asia, bourses in Shanghai, Hong Kong ended in the red, while those in Seoul and Tokyo ended higher. Exchanges in Europe were trading on a positive note after European Union’s top Brexit negotiator hinted at the possibility of a deal this week. - Agencies

Sajjan Jindal repays debt

Sajjan Jindal, promoter of the JSW Group, has repaid ₹1,200 crore of loan raised against pledging JSW Steel and  JSW Energy  shares.

The pledged shares of both the companies were cumulatively worth ₹2,500 crore. The stocks of JSW steel were trading 1.04 per cent lower at Rs 219.20 while the scrips of JSW Energy were trading 5.85 per cent higher at Rs 63.35.

Bullion market

Spot gold prices for 24 Karat in Delhi were trading marginally up. File Photo

Gold witnessed muted trading on Tuesday, rising marginally higher by ₹5 to ₹39,105 per 10 gram in the national capital as a weaker rupee kept the downside limited, according to HDFC Securities. The yellow metal had closed at ₹39,100 per 10 gram in the previous trade here. Silver, however, fell by ₹91 to ₹46,809 per kilogram from ₹46,900 per kilogram on Monday. Read the bullion market report here

'Indian economy doing very badly'

Abhijit Banerjee speaks during a news conference at Massachusetts Institute of Technology in Cambridge.

Indian-American Abhijit Banerjee, who jointly won the 2019 Nobel Economics Prize with his wife Esther Duflo and Harvard’s Michael Kremer, said on Monday that the Indian economy is “doing very badly” even as the government is increasingly recognising that there is a problem. “There is enormous fight going on in India about which data is right and the government has a particular view of (that) all data that is inconvenient to it is wrong." Click here to read more on Nobel Prize winner Abhijit Banerjee's take on Indian economy

Cabinet may consider to hive off GAIL pipeline business

The Union Cabinet may by next month consider a proposal to hive off state-run gas utility  GAIL (India) Ltd’s  pipeline business into a separate entity but its sale to a strategic investor may not happen before 2022, sources privy to the development said. Sources said to resolve the conflict arising out of the same entity owning the two jobs, bifurcating GAIL is being considered. Click here to read more on the government's likely move to bifurcate GAIL

The stocks of GAIL India were trading 2.30 per cent higher at Rs 128.75.

Sensex, Nifty surges nearly 1 per cent

The 30-share BSE index Sensex surged 370.73 points or 0.97 per cent to 38,585.20 while the NSE index Nifty zoomed to 11,454.30 points, higher by 113.15 points or 1 per cent.

The top stocks lending support to the BSE index were bank and financial stocks and the scrips of FMCG companies. The major stocks leading the positive pack were Vedanta, Hero MotoCorp, Mahindra & Mahindra, Maruti and Hindustan Unilever while the laggards were Bharti Airtel, Infosys and Tata Motors.

In the broader index, the stocks of Eicher Motors, Zee Entertainment, Hindustan Unilever, Hero MotoCorp and Maruti were the top gainers while the losers pack were led by the stocks of JSW Steel, Tata Motors, Bharti Airtel, Infosys, and Tata Steel.

Negative core WPI inflation and IIP de-growth are disturbing sign

The decelerating economy

The negative core Wholesale Price Index (WPI) inflation and de-growth in the Index of Industrial Production (IIP) are a disturbing sign, causing serious concerns about the decelerating economy, according to State Bank of India’s economic research report ‘Ecowrap’. Electricity sector, which had been growing well, has shown a decline for the first time, since the new IIP series were released. Read more on the SBI research report on the inflation and IIP data

Yes Bank exits from Fortis Healthcare

YES Bank on Monday exited from Fortis Healthcare by selling 4.95 crore shares or 6.56 per cent stake in the latter. A BSE blockdeal data on Monday disclosed that YES Bank sold those shares at an average price of ₹130.27, taking the deal value to ₹644.83 crore. Eastspring Investments India Equity Open Fund bought 40.53 lakh shares, the BSE data revealed.

The stocks of Yes Bank were trading 1.25 per cent higher at Rs 40.50 and the Fortis Healthcare scrips were trading 4.21 per cent higher at Rs 136.05.

Festive season likely to revive cement demand, prices

Cement demand is expected to increase with the start of festival season, and prices have been increased across regions for the first time after the monsoon. Cement sales growth in the first half of this fiscal was up by a meagre one per cent compared to last year due to prolonged monsoon and slowdown in government projects. Read more on the cement demand and prices here

Top gainers and losers

 

Lakshmi Vilas Bank, Syndicate Bank shares fall

Shares of  Lakshmi Vilas Bank  and  Syndicate Bank  fell by up to 5 per cent on Tuesday after the RBI imposed a monetary penalty on them for violating asset classification and fraud detection norms.

Lakshmi Vilas Bank scrip went lower by 4.96 per cent to its lower circuit level as well as one-year low of Rs 22.05 on the BSE. Shares of Syndicate Bank also fell 2.24 per cent to Rs 24 -- its 52-week low.

HUL stocks rise

The scrip of FMCG major  Hindustan Unilever  (HUL) on Tuesday advanced about 2 per cent after the company reported a 21.18 per cent rise in standalone net profit for the quarter ended on September 30.

Wipro Q3 results preview

IT major Wipro is set to announce the second quarter results with the analysts sounding a note of caution stating that the Bengaluru-headquartered company might come out with weak revenue growth.

It said the full quarter impact of wage revision is likely to lead to a decline in EBIT margin. Reported EBIT margin is expected to increase by 324 bps on YoY comparison mainly on account of 360 bps impact from the settlement of a lawsuit with National Grid in Sep 2018 quarter. Click here to read the analysts prediction and preview of Wipro results

The stocks of Wipro were trading 0.62 per cent lower at Rs 241.85.

Nifty Call

In today’s session the Nifty index is trading on a positive note and is currently retesting the same resistance level. Though the October futures contract of the Nifty 50 index closed below the key level of 11,362 yesterday, the contract still looks bullish. Currently, it is trading at 11,410, well above 11,362.  Read our Nifty Call for October futures here

Gold and precious metals

Gold is making lower highs and lower lows, according to analysts

Gold prices held steady as optimism surrounding US-China trade negotiations faded, while investors awaited outcome of a crucial discussion that will determine how Britain will depart from the European Union.

Spot gold rose 0.1 per cent to $1,493.77 per ounce as of 0406 GMT. US gold futures also inched up 0.1 per cent to $1,498.40 per ounce. Read more on the prices of gold and other precious metals here

Sensex surges 250 points

The 30-share BSE index Sensex surged 253.83 points or 0.66 per cent to 38,468.30 and the 50-share NSE index Nifty jumped 67.30 points or 0.59 per cent to 11,408.45.

The banking and financial stocks - HDFC twins, Kotak Mahindra Bank - and FMCG stocks - ITC and Hindustan Unilever - were lending support to the index, amid the positive global cues.

Asian stocks and the pound gained as investors held out hope that Britain still had a chance of avoiding a messy exit from the European Union at key negotiations this week.

The major stocks leading the positive pack in the Sensex were Hero Motocorp, Maruti, Mahindra & Mahindra, ONGC and Hindustan Unilever while the laggards were Bharti Airtel, Tata Motors, Infosys, Tata Steel and Vedanta.

Infosys stocks were trading lower for the second day after the IT major announced its Q2 results on Friday.

In the broader index, the stocks of Indian Oil Corporation, Eicher Motors, Kotak Mahindra Bank, TCS and NTPC were trading in the positive pack while the major losers were JSW Steel, Tata Motors, Infosys, Vedanta and Bharti Airtel.

Indiabulls HF on buyback proposal

The board of directors of  Indiabulls Housing Finance  will take a final decision on buyback proposal upon receipt of confirmation from SEBI. The board, which met on Monday, said it has inclined for a buyback of shares.

Based on legal advice received on the subject of a buyback, the board thought it is prudent to first confirm with SEBI on the applicability of the debt-equity ratio norm of 6:1, it said in a notice to the stock exchanges. Read more on Indiabulls Housing Finance buyback proposal

Impact of LIBOR

Libor

Banks have begun work to assess the impact to the end of the London Interbank Offered Rate (LIBOR) after 2021 on their own operations as well as work out transition plans. The Indian Banks’ Association has set up a working group to assess the impact of LIBOR.

The findings of the group will be used to educate the various banks some whom may not be fully familiar as to what is expected and how to educate the customers also. Click here to read more on the impact of LIBOR on domestic banks and companies

Commodities market

Brent crude futures fell 0.5%, to $59.067 barrel in early trade

Oil prices fell, after heavy losses in the previous session, as two days of weak Chinese data added to worries about the top crude oil importer's energy demand growth. Brent crude fell 47 cents, or 0.79 per cent, to $58.88 a barrel by 0527 GMT, while US West Texas Intermediate (WTI) crude dropped 40 cents, or 0.75 per cent, to $53.19.

“Subdued global economic momentum has afflicted strong bearish bias on oil prices as traders deliberate demand-side weaknesses in the current term,” Phillip Futures said in a note. Read the commodities market report here

Forex market

Turkish Lira stayed near seven-week lows against the dollar.

The dollar hovered below 2-1/2-month highs against the yen, failing to extend recent gains as optimism over trade negotiations between the world's two largest economies and for an orderly British exit from the European Union started to fade.

In Asian trade, the dollar eased marginally to 108.31 against the yen, still not far from its 2-1/2-month high of 108.63 yen marked on Friday. Click here to read more on the forex market report

Sensex, Nifty edge higher

Shares were higher, as investors hoped for further rate cuts from the Reserve Bank of India to tackle the economic slowdown amid a rise in inflation during the last month.

The broader NSE index was up 0.43 per cent or 49.25 points at 11,390.40, while the benchmark BSE index rose 0.54 per cent or 207.36 points at 38,421.83.

Annual retail inflation rose to 3.99 per cent in last month, driven by higher food prices, up sharply compared with 3.21 per cent in August and higher than the 3.70 per cent forecast in a Reuters poll of analysts.

However, economists said GDP growth could fall as low as 5.8 per cent, dragged down by a slump in consumer demand and investment, encouraging the RBI to cut rates for the sixth consecutive time at its next meeting in December. “With growth numbers remaining fairly weak we expect RBI to continue with its rate cuts,” said Shubhada Rao, chief economist at Yes Bank. “For remaining FY20, we expect 25-40 bps of rate cut.”

Consumer stocks led gains after sector heavyweight Hindustan Unilever's (HUL) September-quarter earnings beat expectations, despite the company flagging near-term woes in the rural market. HUL was up about 1 per cent and the Nifty fast-moving consumer goods index rose 0.5 per cent.

Oil marketing companies Indian Oil Corp and Bharat Petroleum Corp were up 1 per cent and 2 per cent, respectively, and topped the blue-chip gainers on the Nifty index due to favourable oil prices.

Crude fell after weak Chinese economic data for September added to lingering concerns about the feasibility of the US-Sino trade deal announced by US President Donald Trump last week. Among losers, Infosys continued to fall for a second session and shed about 2 per cent after its September-quarter earnings underscored the spending squeeze among Western clients for the company and the country's $180 billion information technology sector at large. - Reuters

US stock markets

All three major US stock averages closed in the red, snapping a three-day winning streak. File Photo

Wall Street edged lower on Monday as uncertainties following recent US-China trade negotiations clouded sentiment and investors turned their focus on the third-quarter earnings season, which begins in earnest on Tuesday.

All three major US stock averages closed in the red, snapping a three-day winning streak during which the benchmark S&P 500 gained 2.7 per cent. Read the US stock markets report here

Currency market

The rupee opened on a cautious note and fell 10 paise to 71.33 against the US dollar in early trade on Tuesday as concerns regarding US-China trade talks kept investors edgy. At the interbank foreign exchange, the rupee opened at 71.26. Read the local currency market report here

HUL top gainer in Sensex pack

Equity benchmark BSE Sensex rose over 100 points led by gains in index heavyweights HDFC twins, HUL, TCS and RIL, amid sustained foreign fund inflow.

The 30-share index was trading 184.44 points, or 0.48 per cent, higher at 38,398.91. Similarly, the broader NSE Nifty rose 47.85 points, or 0.42 per cent, to 11,389.

HUL was the biggest gainer in the Sensex pack, rising over 1 per cent, after the FMCG major reported a 21.18 per cent rise in standalone net profit at Rs 1,848 crore for the quarter ended on September 30.

Other gainers included Sun Pharma, TCS, HCL Tech, ONGC, Hero MotoCorp, Axis Bank, Asian Paints, HDFC duo, ITC and RIL, gaining up to 1 per cent. While, Infosys, Vedanta, Tata Motors, Bharti Airtel, Tata Steel and IndusInd Bank fell up to 2 per cent.

In the previous session on Monday, the BSE barometer closed 87.39 points, or 0.23 per cent, higher at 38,214.47, while the Nifty moved up 36.10 points, or 0.32 per cent, to 11,341.15.

Foreign institutional investors (FIIs) continued to be net buyers in the capital market, infusing Rs 895.63 on Monday, while domestic institutional investors sold shares worth Rs 425.15 crore, data available with stock exchange showed.

Despite sustained foreign fund inflow, domestic investors were cautious after the release of inflation data, traders said.

Retail inflation climbed to a 14-month high of 3.99 per cent in September due to costlier vegetables and pulses but still remained within the RBI’s comfort zone, government data showed on Monday. The Consumer Price Index-based inflation stood at 3.28 per cent in August and 3.70 per cent in the September 2018. The previous high was 4.17 per cent in July 2018.

However, the wholesale inflation in September slipped to an over three-year low of 0.33 per cent. “While the decline in the core inflation provides some comfort, the unexpectedly sharp jump in the September 2019 CPI inflation has pushed up the likelihood of a pause in the next Monetary Policy Committee (of RBI) review, unless the headline retail inflation recedes sharply in the ongoing month,” Principal Economist with ICRA Aditi Nayar said.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading on a cautious note as Britain and the European Union on Monday began key talks to determine if they are still on course to reach amicable terms for Brexit. Exchanges on Wall Street ended in the red on Monday.

The rupee, meanwhile, depreciated 6 paise against its previous close to trade at 71.30 in early session. Brent futures, the global oil benchmark, fell 0.78 per cent to USD 58.89 per barrel. - PTI

Global markets

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent. File Photo

Asian stocks and Wall Street futures inched higher as some investors held out hope that Britain still had a chance to avoid a messy exit from the European Union at key negotiations this week. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent.

Reports of a “Phase 1” trade deal between the United States and China last week had earlier cheered markets but the dearth of details around the agreement has since curbed this enthusiasm with oil prices extending declines, Chinese stocks weaker and the safe-haven yen holding gains versus dollar. Read the global stock markets report here

Can IRCTC continue its sterling show?

(Left) P S Mishra, Member Traffic Railway Board along with Ashish Kumar Chauhan, MD & CEO, BSE and Mahendra Pratap Mall, CMD, IRCTC striking the gong to list the share IRTC on BSE in Mumbai. Photo: Paul Noronha

After a blockbuster first-day show, can IRCTC revive the moribund primary market for equities, is the question on everyone’s lips. The IPO of Indian Railways Catering and Tourism (IRCTC) made a debut with over 100 per cent gains. The share price of the company more than doubled to touch a high of ₹743 compared to the issue price of ₹320. The stock closed at ₹728.60 on the BSE. Read more on what the traders' say about the steller show of IRCTC stocks on debut

Stocks in focus

Over dozen major firms will declare their quarterly results for the period ended September 2019 on Tuesday. Among them are ACC, Alicon Castalloy, Apollo Tricoat Tubes, Gujarat Hotels, International Travel House, Karnataka Bank, Multi Commodity Exchange, Network18 Media & Investments, Paisalo Digital (formerly SE Investments), Reliance Industrial Infrastructure, SBI Life Insurance Company, TV18 Broadcast, Uttam Galva Steels, Wipro and ZF Steering Gear (India).

Sun Pharmaceutical Industries on Monday said it has launched ophthalmic solution Cequa used for the treatment of dry-eye disease in the US market. One of the company’s wholly owned subsidiaries has commercialised Cequa 0.09 per cent in the US, Sun Pharma said. The product offers the highest concentration of cyclosporine for ophthalmic use approved by the United States Food and Drug Administration. Cequa is indicated to increase tear production in patients with dry eye.

YES Bank on Monday exited from Fortis Healthcare by selling 4.95 crore shares or 6.56 per cent stake in the latter. A BSE blockdeal data on Monday disclosed that YES Bank sold those shares at an average price of ₹130.27, taking the deal value to ₹644.83 crore. Eastspring Investments India Equity Open Fund bought 40.53 lakh shares, the BSE data revealed. However, the other buyers’ name were not available immediately. Shares of both YES Bank and Fortis will remain in focus.

Opening bell

The 30-share BSE index Sensex opened 102.02 points higher at 38316.49 against the previous close of 38214.47. Similarly, the 50-share NSE index Nifty opened higher at 11,360.85, up 19.7 points against the previous close of 11341.15.

Day Trading Guide

₹1203 • HDFC Bank

₹785 • Infosys

₹244 • ITC

₹135 • ONGC

₹1357 • Reliance Ind.

₹255 • SBI

₹2020 • TCS

11336 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick

We recommend a buy in the stock of Tata Motors at the current levels of Rs 127.8. The breaching of key moving average has strengthened the bullish momentum. There has been an increase in daily volume over the past two months. The break above the 21- and 50-day moving averages as well as an immediate resistance at ₹122 is positive for the stock from a short term perspective. Read our stock recommendation of Tata Motors here

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