Sensex rises for fourth straight session, up 93 points

Closing bell

Rising for the fourth straight session, equity benchmark BSE Sensex advanced 93 points, driven by finance and energy stocks amid mixed global cues.

After swinging 250 points in a volatile session, the 30-share Sensex ended 92.90 points, or 0.24 per cent, higher at 38,598.99. It hit an intra-day high of 38,666.38 and a low of 38,416.67. The broader NSE Nifty rose 35.70 points, or 0.31 per cent, to settle at 11,464.

Top gainers in the Sensex pack included Bajaj Finance, ONGC, Yes Bank, HDFC, HCL Tech, Tech Mahindra, TCS, ICICI Bank and RIL, rising up to 3.57 per cent. On the other hand, Hero MotoCorp, Vedanta, Asian Paints, NTPC, ITC, PowerGrid, SBI and Tata Motors fell up to 2.73 per cent.

Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo ended on a positive note, while those in Shanghai settled in the red.

Exchanges in Europe were also trading lower in their respective early sessions on reports that Tuesday’s talks brought British and European negotiators closer to a Brexit deal but failed to confirm an elusive breakthrough.

Meanwhile, the Indian rupee appreciated 17 paise to 71.37 against the US dollar intra-day. Brent crude futures, the global oil benchmark, fell 0.17 per cent to USD 58.64 per barrel. - PTI

Broker's call

Centrum Broking

Infosys (Add)

CMP: ₹767.8

Target: ₹850

Infosys’ Q2FY20 results were a mixed bag with modest revenue miss negated by EBIT margin beat. Post modest 2Q revenue miss, we model Infosys dollar revenue growth at 10/10.2 per cent for FY20/FY21E (vs 10.6 per cent/9.8 per cent modelled earlier). Cross currency headwind and modest 2Q revenue miss leads us to marginally trim FY20 dollar revenue growth assumption. Read our Broker's call on Infosys here

European shares

FTSE mid-caps fall 1 per cent after hitting 1-year high. File Photo

European shares slipped, after closing at their highest level in more than a year, as London's last-ditch Brexit talks with Brussels kept investors apprehensive about making brisk decisions. The pan-European STOXX 600 index was down 0.3 per cent, after closing at its highest level since May 2018.

The wider European mining sector was down 1.3 per cent, while the financial services and retail sectors shed more than 1 per cent on declines in British stocks. Read the European stock markets report here

Bajaj Consumer Care zooms 20% 

Shares of Bajaj Consumer Care zoomed 20 per cent on Wednesday after Bajaj Resources, a promoter of the consumer goods firm, offloaded around 22 per cent stake in the company.

The scrip jumped 20 per cent to ₹234.65, its upper circuit limit on the BSE. On the NSE, it advanced 19.17 per cent to ₹242.70.

Bajaj Resources on Tuesday offloaded around 22 per cent stake in the company for ₹628 crore through an open market transaction. As per exchange data, Bajaj Resources sold 3,22,65,100 shares representing 22 per cent equity stake of Bajaj Consumer Care at an average price of ₹194.56. - PTI

Sensex, Nifty marginally lower

The 30-share BSE index Sensex was trading 0.06 per cent or 22.98 points lower at 38,483.11, meanwhile the 50-share NSE index Nifty was trading higher at 11,439.80, up 11.50 points or 0.10 per cent.

SBI Life stocks gain despite net profit fall

SBI

Strong growth in new business premium, improvement in value of new business (VNB) margin, strong distribution network and management’s continual focus on product diversification — have kept  SBI Life ’s performance in good stead in the latest September quarter.

Of the ₹70 crore provision, ₹67 crore pertained to DHFL exposure. As a result, SBI Life’s net profit declined by 48 per cent YoY to around ₹130 crore in the latest September quarter. Click here to read why the stocks of SBI Life has gained despite the net profit fall

Commodities market

OPEC, Russia and other producers have cut oil output by 1.2 million barrels per day to support the market

Oil prices rose, tracking gains in equities, as investors pinned hopes on a potential Brexit deal between Britain and the European Union and on signals from OPEC and its allies that further supply curbs could be possible. But gains were limited due to lingering concerns of a global economic slowdown.

Global benchmark Brent crude oil futures had risen 25 cents to $58.99 by 0621 GMT, up about 0.4 per cent from the previous day's close. Read the commodities market report here

Global Hunger Index

Prevalence of undernourishment owing to inadequate food, the report said (file photo).

India has slipped to 102 position in the Global Hunger Index 2019 of 117 countries, slipping from its 2018 position of 95 and behind its neighbours Nepal, Pakistan and Bangladesh.

The report, prepared jointly by Irish aid agency Concern Worldwide and German organisation Welt Hunger Hilfe termed the level of hunger in India “serious”. Read more on the Global Hunger Index 2019

Nifty Calll

The Nifty October month futures contract started the session on a positive note at 11,458 levels. After marking an intra-day high at 11,484 the contract declined and recorded an intra-day low at 11,427 levels. Traders with a near-term view should tread with caution and consider initiating long positions above 11,490 levels with a fixed stop-loss. Read our Nifty Call for October futures here

ACC stocks gain

Shares of cement maker  ACC  on Wednesday jumped over 4 per cent after it reported a 44.66 per cent rise in consolidated net profit for the third quarter ended September 30, 2019.

Broker's call

Reliance Securities

Sun Pharmaceutical Ind (Buy)

CMP: ₹396

Target: ₹500

Sun Pharmaceutical Industries has launched ophthalmic specialty Novel/NDA drug Cequa (API: cyclosporine; strength: 0.09 per cent solution; US FDA approval: Aug’18; patent expiry: August 2033) in the US. This is the third such product from Sun Pharma’s ophthalmic portfolio (Xelpros and Bromsite) and 9th specialty product in the US. Cequa is the first and only US FDA approved cyclosporine treatment delivered with NCELL (nanomicellar) technology, is indicated for keratoconjunctivitis sicca (dry eye disease; 16mn+ patients in the US). Read our Broker's call on Sun Pharma here

Precious metals

Spot gold was up 0.2% at $1,484.10 per ounce.

Gold prices edged higher after shedding nearly 1 per cent in the previous session, as some optimism about Britain's negotiations to leave the European Union ebbed, while a risk-on sentiment capped the bullion's gains.

Spot gold was up 0.2 per cent at $1,484.10 per ounce as of 0427 GMT. US gold futures were 0.3 per cent higher at $1,487.90 per ounce. Click here to read more on the prices of gold and other precious metals

SBI Life Insurance Q2 results

SBI

SBI Life Insurance  reported a 48.17 per cent drop in its net profit for the second quarter of the fiscal year at Rs 129.84 crore. The private sector life insurer had a net profit of Rs 250.53 crore in the same period a year ago.

For the July to September 2019 quarter, its first year premium income rose by a healthy 14.7 per cent to Rs 2,548.04 crore. Click here to read the Q2 results of SBI Life Insurance

The stocks were trading 3.62 per cent higher at Rs 870.05

Sensex, Nifty trade firm

The 30-share BSE index Sensex was trading higher by 98.49 points or 0.26 per cent at 38,604.58 and the broader index Nifty was 31.95 points or 0.28 per cent higher at 11,460.25.

The top gainers in the Sensex pack were Bajaj Finance, ICICI Bank, HDFC, Bajaj Auto and Sun Pharma while the laggards were Vedanta, Hero Motocorp, ITC, PowerGrid, and TCS.

In the Nifty index, the stocks leading the positive pack were Zee Entertainment, BPCL, Grasim, Bajaj Finance and Wipro while the major losers were Hindalco, Vedanta, Adani Ports, Hero Motocorp, and ITC.

SEBI fixes exit load range for liquid funds from October 20

Capital market regulator SEBI has recommended a graded exit load starting from 0.0070 per cent to 0.0045 per cent, reducing 0.0005 percentage points every day in all liquid funds starting October 20.

The move to levy exit load on liquid funds is expected to boost mutual funds profit. Click here to read more on SEBI's recommendation on exit load for liquid funds

Wipro stock rises

The scrip of  Wipro  on Wednesday jumped over three per cent after the company posted 35 per cent rise in consolidated net profit for the second quarter ended September 30. The scrip gained 3.32 per cent to ₹251.80 on the BSE. On the NSE, it advanced 3.3 per cent to ₹251.70.

Currency market

At the interbank foreign exchange, the rupee opened at 71.60. File Photo

The Indian rupee opened on a cautious note and fell 17 paise to 71.71 against the US dollar in early trade on Wednesday amid rising crude oil prices and increasing demand for the US dollar vis-a-vis other currencies overseas. At the interbank foreign exchange, the rupee opened at 71.60 then fell to 71.71 against the US dollar. Read the local currency market report here

Hiring by Big Three IT firms up

Representational image only

India’s top three IT companies — Tata Consultancy Services, Infosys and Wipro — have significantly increased their net employee hiring in the September quarter compared with the previous quarter. The three companies together hired 28,157 employees (net) compared with 16,687 in the first quarter, an increase of 59 per cent.

The increased hiring comes in the backdrop of better business forecast. The hiring, which started to decline from the third quarter of last year. Click here to read more on the IT hiring trends

Sensex, Nifty inch higer

The shares moved higher, as investors looked towards a rise in September-quarter earnings for companies after the government's corporate tax cut, amid a rise in inflation and hopes of further rate cuts from the RBI.

The broader NSE index rose 0.32 per cent or 36.90 points at 11,465.20, while the benchmark BSE index was up 0.23 per cent or 90.05 points at 38,596.14.

The September-quarter earnings season has so far seen blue-chip companies such as Hindustan Unilever (HUL), Wipro Ltd and ACC Ltd beat estimates. Earnings was in-part helped by the government's move to slash corporate taxes last month.

Federal Bank and Mindtree Ltd are among the companies scheduled to report earnings later on Wednesday. Both the companies' shares were up between 0.5 per cent and 1 per cent ahead of the announcement.

Meanwhile, retail inflation for September rose, but a sharp economic slowdown has left analysts predicting a further rate cut by the Reserve bank of India. “Investors are hoping for optimism from corporates in their Q2 earnings commentary led by corporate tax rate cuts and revival in consumer demand,” said Rajesh Cheruvu, chief investment officer at Validus Wealth.

Broader Asian shares that rose in line with overnight gains in US equities also supported Indian indexes. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent.

In the domestic market, Bharat Petroleum Corp topped the gainers list on the Nifty index, as the stock rose 4.79 per cent. Wipro shares were up about 2.7 per cent after the company reported a better-than-expected September-quarter earnings and also gave an optimistic revenue forecast for the next quarter.

Among other companies that reported earnings on Tuesday, ACC Ltd rose 2.69 per cent, while Multi Commodity Exchange of India was up about 7 per cent. However, Vedanta Ltd was the morning's top loser on the NSE index, dropping 1.4 per cent. - Reuters

ONGC Videsh makes new discoveries

ONGC Videsh  Limited(OVL), the overseas investment arm of ONGC, has recorded discoveries of oil in its onshore exploration block CPO-5, Colombia in the Llanos basin and major gas in the deep offshore exploration block BM-SEAL-4, Brazil in the Sergipe Alagoas Basin.

ONGC Videsh had earlier discovered commercial oil in the same pay in wells Mariposa-1 and Indico-1 in 2017 and 2018, respectively. Both the wells are under production now. Read more on the discoveries by ONGC Videsh Limited here

Forex market

Sterling loses gains in Asia. File Photo

The pound pulled back from its highest level in almost five months versus the dollar, erasing some of the rally sparked by signs Britain is closing in on a deal to leave the European Union. Sterling also pulled back from its highest in five months against the euro as investors took profit and prepared for a make-or-break summit between Britain and the EU on Thursday and Friday.

The pound fell 0.27 per cent to $1.2756, pulling back from a five-month high of $1.2800 reached on Tuesday. Against the euro, the British currency fell around 0.2 per cent to 86.48 pence. Read the forex market report here

US stocks

All three major US stock averages gained ground in a broad-based rally. File Photo

Wall Street advanced on Tuesday as third-quarter reporting season hit with a spate of upbeat earnings reports that brought buyers back to the equities market. All three major US stock averages gained ground in a broad-based rally, with the S&P 500 and the Nasdaq hitting their highest closing level in more than three weeks.

Major financial firms JPMorgan Chase & Co, Citigroup Inc, Goldman Sachs Group Inc and Wells Fargo & Co all posted results, as did healthcare giants Johnson & Johnson and UnitedHealth Group Inc. Read the US stock markets report here

Nifty inches towards 11,500 mark

Equity benchmark BSE Sensex advanced over 150 points driven by gains in energy and banking stocks amid sustained fund inflow and positive cues from global equities.

The 30-share index was trading 158.41 points, or 0.41 per cent, higher at 38,664.50 at 09 30 am. Similarly, the broader NSE Nifty rose 50.75 points, or 0.44 per cent, to 11,479.05.

Top gainers in the Sensex pack included Bajaj Finance, Yes Bank, HDFC Bank, RIL, Tata Motors, Bajaj Auto, Tata Steel and ONGC, rising up to 3 per cent. On the other hand, Vedanta, PowerGrid, ITC, Hero MotoCorp, M&M, Asian Paints, L&T and TCS fell up to 1.50 per cent.

In the previous session, the BSE barometer closed 291.62 points, or 0.76 per cent, higher at 38,506.09, while the Nifty rose 87.15 points, or 0.77 per cent, to settle at 11,428.30.

Foreign institutional investors (FIIs) continued to be net buyers in the capital market, infusing Rs 436.02 on Tuesday, and domestic institutional investors bought shares worth Rs 929.39 crore, data available with stock exchange showed.

Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo were trading on a positive note, while those in Shanghai were in the red. Exchanges on Wall Street ended significantly higher on Tuesday amid positive news on the US-China trade front and hopes of a Brexit deal this week.

“News that the trade dispute between US and China is nearing the end has lifted global markets,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management. Further, domestic investors are pricing in the positive commentary from corporates this earnings season, he added.

Market experts are also of the view that the central bank will continue with its accommodative policy stance and may go for further rate cut in the policy review of December 2019, as retail inflation moved up in September.

According to traders, sustained domestic and foreign fund inflow has also boosted investor sentiment. The rupee, meanwhile, depreciated 12 paise against its previous close to trade at 71.66 in early session.

Brent futures, the global oil benchmark, rose 0.26 per cent to USD 58.89 per barrel. - PTI

Global markets

File photo

Asian shares inched higher while sterling came off five-month highs in volatile trade on Wednesday as investors looked to whether Britain can secure a deal to avoid a disorderly exit from the European Union. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4% while Japan's Nikkei jumped 1.5%, hitting 10-month highs. Read the global stock markets report here

Stocks in focus

Aditya Birla Money, Eimco Elecon (India), Federal Bank, DB Corp, Hathway Cable & Datacom, MindTree, Kokuyo Camlin and Mro-Tek Realty will declare their quarterly results for the period ended September 2019 on Wednesday. BNP Paribas expects Mindtree to report a revenue growth of 2.3 per cent q-o-q on large deal wins ramping up. Analysts would be looking for updates on the new CEO strategy, FY20 revenue and margin, digital revenue, top accounts, and recent deal wins.

Shares of NIIT will turn ex-date on Thursday for the proposed buyback. It had approved a proposal to buy back 2.68 crore shares, or 16 per cent of its equity, at ₹125 a share for ₹335 crore through the tender route. NIIT had divested its entire stake in NIIT Technologies to Baring Private Equity Asia Ltd’s arm Hulst BV in April and received ₹2,020 crore from the stake sale. Investors must own the company’s shares by Wednesday to become eligible to participate in the buyback offer.

Shares of Tata Consultancy Services will turn ex-dividend on Thursday. The board had declared an interim dividend of ₹5 and a special dividend of ₹40 a share of ₹1 each. The dividends will be paid on October 24 to the shareholders, whose names appear on its record books on October 18. That means, investors wishing to receive the dividend from Tata Consultancy Services need to buy the company’s shares by Wednesday. In July too, TCS had paid ₹5 as interim dividend for this fiscal.

Opening bell

The 30-share BSE index Sensex opened 130 points higher at 38,637.05 against the previous close of 38,506.09 and the 50-share NSE index Nifty opened 31 points higher at 11,459.30 against the previous close of 11,428.30.

Day Trading Guide

₹1222 • HDFC Bank

₹767 • Infosys

₹247 • ITC

₹138 • ONGC

₹1363 • Reliance Ind.

₹258 • SBI

₹2037 • TCS

11439 • Nifty 50 Futures

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

Today's Pick

File photo

We recommend a buy in the stock of ITDC at the current levels of RS 296.4. The stock recorded a 52-week low at ₹152 in late August and subsequently changed direction triggered by positive divergence in the daily relative strength index. Since then, the stock has been on a short-term uptrend. Read our stock recommendation of ITDC here