MARKET WRAP: Sensex jumps 551 pts as govt assures RBI autonomy; HDFC up 6%

Nifty IT index settled 4.2 per cent higher led by gains in Tech Mahindra and Infosys. The Nifty Financial Services index too rose 2.3 per cent led by Indiabulls Housing Finance and HDFC

The benchmark indices erased their day's losses and settled over 1.5 per cent higher after the finance ministry said that the autonomy of the Reserve Bank of India (RBI) was "essential", in an attempt to dampen a spat between the government and the central bank.

The S&P BSE Sensex ended at 34,442, up 551 points (1.6 per cent), while the broader Nifty50 index settled at 10,387, up 188 points(1.9 per cent).

Among the sectoral indices, Nifty IT index settled 4.2 per cent higher led by gains in Tech Mahindra and Infosys. The Nifty Financial Services index, too, rose 2.3 per cent led by Indiabulls Housing Finance and Housing Development Finance Corporation (HDFC).

The rupee, too, has partially recovered from its day's low and is back in the 73 per dollar-levels. The Indian currency has fell to 74.14 against US dollar in intra-day trade, down its previous close of 73.67 against the greenback.

Govt says RBI autonomy 'essential'

Finance ministry said on Wednesday the autonomy of the Reserve Bank of India (RBI) was "essential", in an attempt to dampen a spat between the government and the central bank.

"The autonomy of the central bank ... is an essential and accepted governance requirement," the ministry said in a statement. "Governments in India have nurtured and respected this."

The comments came after reports suggested that the RBI governor Urjit Patel was on the verge of resigning over the breakdown in relations with the government.

Global Markets

Asian stocks clawed up from 20-month lows on Wednesday amid pledges by China to support its markets, but investor confidence was brittle after equity markets bled trillions of dollars in a grim October.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent, drawing support from gains on Wall Street overnight. Yet it was on track to fall around 11 percent this month, which would be its worst monthly performance since September 2011.

Hong Kong's Hang Seng rose 1 per cent on Wednesday and the Shanghai Composite Index climbed 1.2 per cent as weaker-than-expected factory activity data reinforced views that Beijing will roll out more support measures for the economy.

Australian stocks ended 0.4 per cent higher, South Korea's KOSPI added 0.7 per cent. In Japan, the Nikkei advanced 2.2 per cent, reassured by the Bank of Japan's signal that it will keep its ultra-easy policy for some time to come.

(with Reuters input)

3:38 PM

Top sectoral gainers & losers on NSE

3:37 PM

S&P BSE Sensex: Top gainers & losers

3:35 PM

Market At Close
 

The S&P BSE Sensex jumped 551 points or 1.63 per cent tp settle at 34,442 while NSE's Nifty50 index reclaimed the crucial 10,350 level to end at 10,387, up 188 points or 1.85 per cent. 

3:19 PM

Dabur India's Q2 net profit jumps 4% to Rs 3.7 bn, income up 8% to Rs 22 bn

FMCG major Dabur India Wednesday reported a 4.10 per cent increase in consolidated net profit at Rs 3.77 billion for the second quarter ended September, 2018 helped by growth of the core business in the domestic market.

 

The company had posted a net profit of Rs 3.62 billion in the July-September quarter a-year-ago, Dabur India said in a BSE filing. READ MORE

3:15 PM

Financial stocks in focus; PNB Housing, DHFL, HDFC up over 5%

Shares of financial stocks including banks, housing finance and non-banking finance companies were in focus, rallying up to 12% on the bourses in intra-day trade erasing their entire early morning losses. Nifty Financial Services and Nifty PSU Bank indices were up 2% each as compared to 1.4% rise in the Nifty 50 index. Nifty Bank and Nifty Private Bank were up 1% each on the NSE. READ MORE

2:59 PM

Oil rises 1 per cent ahead of Iran sanctions

 

Oil prices climbed for the first time in three days on Wednesday, rising around 1 per cent ahead of the start of U.S. sanctions against Iran next week and as stock markets clawed back some of the losses they racked up this month. 

 

Brent crude futures had gained 83 cents, or 1.1 per cent, to $76.74 a barrel. They fell 1.8 per cent on Tuesday, at one point touching their lowest since Aug. 24 at $75.09 a barrel.

 

U.S. West Texas Intermediate (WTI) crude futures advanced 55 cents, or 0.9 per cent, to $66.73 a barrel on Wednesday. They dropped 1.3 per cent the day before, after hitting their lowest since Aug. 17 at $65.33 a barrel.

2:45 PM

Shares of housing finance companies have risen

2:30 PM

S&P BSE Sensex top gainers and losers

2:19 PM

NEWS ALERT: PNB Housing Finance raises Rs 24.50 billion through commercial papers, stock jumps 10%

2:09 PM

RBI Governor Urjit Patel may not resign, calls board meeting on Nov 19

RBI Governor Urjit Patel may not resign as he has called a board meeting on November 19 to discuss the pending issues, which created a rift between the government and the central bank, in the previous meeting held last week.

 

Meanwhile, the finance ministry said on Wednesday that it respects the central bank's autonomy. READ MORE

1:58 PM

BS Primer: What is liquidity and why does it matter?

Liquidity explains the extent to which an asset can be converted into cash without significant loss of value. You may perceive it as an ability to realise the maximum value of an asset by purchase or sale without impacting the price of the asset. From an investment point of view, liquidity relates to the ease with which an asset can be bought or sold to meet the urgent need of cash. Read more

1:45 PM

Emami, Tata Global Beverages hit 52-week low post September quarter results

Shares of Emami and Tata Global Beverages have hit their respective 52-week lows, falling by up to 9% on the BSE in intra-day trade on Wednesday, after reporting a weak set of numbers for the quarter ended September 2018 (Q2FY19).
 

Tata Global Beverages slipped 9% to Rs 206 after the company posted 19% year-on-year (Y-o-Y) growth in group net profit at Rs 1.84 billion in Q2FY19, on account of lower tax and higher profits from associates and joint ventures. READ MORE

1:29 PM

Equirus on Wipro 

 

CMP: Rs 307

Target Price: Rs 329

Rating: Accumulate

 

Wipro’s 2QFY19 earnings were better than anticipated both on revenue and margins. IT services constant currency (CC) revenues grew 2.8% (guidance: 0.3- 2.3%) while US$ revenues increased 1.9% qoq (adjusting for data center business) and were higher than EE (-0.1% qoq). Further, though consolidated reported EBITM declined 100bps qoq to 13.3%, adjusted IT services EBITM expanded 250bps qoq to 18.1% vs. 15.6% LQ. Finally, 3QFY19e CC revenue growth guidance of 1-3% was reassuring. We adjust estimates and maintain our ADD rating with a Mar’20 TP of Rs 329 (same as earlier) set at 17x Mar’20 TTM EPS of Rs 19.4 (same as earlier).

 

1:23 PM

Equirus on Bajaj Auto

 

CMP: Rs 2478

Target Price: Rs 3130

Rating: Overweight

 

Bajaj Auto’s delivered an in-line 2QFY19 with 3% yoy growth in EBITDA (Rs 13.4bn), despite 25% yoy growth in volumes as discounts offered to gain market share in domestic 2Ws hurt margins. As we had stated earlier, discounting or some other form of promotion was critical for Bajaj Auto to revive footfalls, dealer profitability and market share, given that market share is relatively difficult to revive (vis-à-vis margins) in the long term. Increase in Platina sales and market share stemmed from higher footfalls in dealerships. We expect EBITDA margins to improve gradually from 4Q with 18% margins in FY20 as USD-INR realizations touch 73. We raise FY19E/FY20E volumes by ~3% but revise EPS estimates by -1%/1. Retain LONG with a Sep’19 TP of Rs 3,130 set at 18x Sep’19 EPS (Jun’19 TP: Rs 3,038).

1:16 PM

Finance ministry says RBI autonomy 'essential'

Finance ministry said on Wednesday the autonomy of the Reserve Bank of India (RBI) was "essential", in an attempt to dampen a spat between the government and the central bank. READ MORE