Markets extend gains for 4th day; Sensex up 118 pts, Nifty ends at 10,326

All that happened in Tuesday's trade

The benchmark indices extended gains for the fourth straight session on Tuesday thanks to gains in pharma stocks and index heavyweight Reliance Industries. Positive trend seen in Asian markets also contributed to the rally.  

The Nifty Pharma index rose over 2% with Dr Reddy’s Laboratories gaining as much as 10% after the company got Establishment Inspection Report from the US FDA for its Duvvada facility at Vishakapatman. Reliance Industries gained after Goldman Sachs raised the target price on the company by 26% to Rs 1,205 and added the stock to its ‘conviction list’ with a ‘buy’ rating, reported Reuters. 

Broader Asian markets rose to a 10-year high after strong German economic data boosted sentiment.

3:51 PM

Anand James, Chief Market Strategist, Geojit Financial Services

 

Positivity in global peers and buoyancy in the pharma sector following USFDA clearances helped extend yesterday’s gains, but profit booking in the recent outperformers capped any further gains. Anticipations on further list of stressed assets should keep banking stocks in focus, in view of provisioning required.

3:50 PM

Sectoral trend 

Source: NSE

3:40 PM

Sensex heatmap at close 

Source: BSE

3:38 PM

Markets at close

 

The S&P BSE Sensex ended at 33,478, up 118 points, while the broader Nifty50 settled at 10,326, up 28 points. 

S&P BSE SENSEX	33,478.35	+118.45	+0.36
S&P BSE SENSEX 50	10,765.23	+34.51	+0.32
S&P BSE SENSEX Next 50	35,708.16	+63.81	+0.18
S&P BSE 100	10,793.18	+32.11	+0.30
S&P BSE Bharat 22 Index	3,738.41	-13.43	-0.36

Source: BSE

3:22 PM

Tencent surpasses Facebook in market value

 

China's social media and video game giant Tencent overtook Facebook in market value today as investors sent the company soaring to the top five list of the world's biggest firms.

 

Tencent's shares, traded in Hong Kong, have doubled in value this year as the tech company's earnings have repeatedly outmatched analysts' expectations. READ FULL REPORT

3:19 PM

Top five Nifty losers in last leg of trade

Source: NSE

3:08 PM

Buzzing stocks

 

Shares of six auto ancillaries companies – ABC Bearings, Automobile Corporation of India, Bharat Gears, Bharat Seats, Minda Industries and Timken India – hit their respective new highs on Tuesday.  These companies reported strong results for the quarter ended September 2017 (Q2FY18).

 

The aggregate net profit of these 6 companies increased by 65% to Rs 132 crore in Q2FY18 against Rs 80 crore in the same quarter last year. READ MORE

2:58 PM

Vedanta set to overtake Aditya Birla group as largest aluminium maker

 

Anil Agarwal-owned Vedanta Ltd is poised to overtake Aditya Birla group as the largest producer of aluminium in the country in the current fiscal.

 

Vedanta, which produced 0.96 million tonne of aluminium across its two facilities in Odisha and Chhattisgarh, is on course to clock an annual output of 1.6 million tonne this year. READ FULL REPORT

2:51 PM

HDFC Securities report on Strides Shasun

 

In another business restructuring, Strides Shasun (STR) sold its India-branded business to Eris Life Sciences, for a consideration of Rs 5bn. The business contributed only ~5% to the total topline in FY17, and would have required significant investment to scale it up further. This is the second such business rationalisation by STR in FY18, along with the hive-off of the commodity API business. We believe that these divestments would help narrow STR’s focus on the high potential business segments, i.e. the US and Australia, where investments are now complete, and strong growth is expected to kick-in over FY18-20E. At ~16x/12x FY19E/FY20E EPS, STR is available at attractive valuations. With debt expected to drop by ~Rs 8bn in FY19E (32% of Sep-17 net debt) owing to these divestments, we find more comfort with our FY19/20E earnings estimates. On the back of the launches of gLovaza and potassium citrate in the US, and an expected string of approvals over the next 12 months (new GDUFA guidelines), mgt has guided for a ~US$ 50mn/qtr rev run-rate for the US business from 4QFY18 (v/s our est. of US$ ~38mn). We believe that this is an opportune time to invest in STR, with strong sequential improvement likely from 2HFY18. Re-iterate BUY with a TP of Rs 1,200 (18x Sep19E + Rs 100/sh for Solara + Rs 30/sh for Biopharma).

2:35 PM

Tea shares surge

 

Shares of tea companies have rallied up to 17% on the bourses in intra-day trade on expectations that lower production may boost tea prices.

 

Rossell India, Goodricke Group, McLeod Russel India, Warren Tea, Jay Shree Tea Industries, Harrisons Malayalam and Tata Coffee among few were trading higher by more than 4% on the BSE. On comparison, the S&P BSE Sensex was up 0.52% at 33,535 at 01:13 PM. READ MORE

2:21 PM

Top Nifty gainers 

Source: NSE

1:48 PM

Vadilal family drama

 

Even as the eight-decade-old Gujarat-headquartered ice-cream maker Vadilal Industries Ltd (VIL) was getting its act together, the fallout of an old family feud threatens to throw a spanner in the company’s future growth plans. READ FULL REPORT

1:25 PM

Moody's explains why India deserved a rating upgrade

 

The report seeks to answer questions such as the drivers of the upgrade, the reason for the upgrade amid the current economic slowdown,  how does the recently announced bank recapitalization plan help Indian banks and so on.  Moody's expects India's continued progress on economic and institutional reforms will, over time, enhance India's high growth potential. READ FULL REPORT

1:07 PM

Market Check at 1 pm

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,542.01	+182.11	+0.55
S&P BSE SENSEX 50	10,785.67	+54.95	+0.51
S&P BSE SENSEX Next 50	35,814.01	+169.66	+0.48
S&P BSE 100	10,815.40	+54.33	+0.50
S&P BSE Bharat 22 Index	3,749.04	-2.80	-0.07

12:46 PM

Corporate India is still a global minnow in terms of profits

 

A strong rally on Dalal Street has made India one of the biggest in terms of market capitalisation globally but corporate India is still a global minnow in terms of actual profits. During the 12 months ending September this year, the combined net profit of BSE 500 companies at around $69.5 billion was a fifth of the combined net profit of China’s 300 biggest companies and a ninth of that at the euro zone’s 500 biggest listed companies. The gap with America is more. READ MORE