Market reverses yesterday's slide

Key benchmark indices logged strong gains on buoyant global cues, reversing yesterday's slide. The barometer index, the S&P BSE Sensex, rose 265.15 points or 0.97% to settle at 27,517.68. The Nifty 50 index rose 93.75 points or 1.11% to settle at 8,525.75. Market sentiment got a boost after global investors turned hopeful about generous tax cuts and higher infrastructure and defence spending in the US following Donald Trump's election victory.

PSU bank stocks logged sharp gains. Private bank stocks rose. Metal shares rose as copper price edged higher in the global commodities markets. Telecom stocks were in demand.

The Sensex rose 265.15 points or 0.97% to settle at 27,517.68, its highest closing level since 8 November 2016. The Sensex rose 490.93 points, or 1.80% at the day's high of 27,743.46 in early afternoon trade, its highest level since 1 November 2016. The index rose 204.52 points, or 0.75% at the day's low of 27,457.05 in late trade.

The Nifty 50 index rose 93.75 points or 1.11% to settle at 8,525.75, its highest closing level since 8 November 2016. The Nifty rose 166.45 points, or 1.97% at the day's high of 8,598.45 in early afternoon trade, its highest level since 1 November 2016. The index rose 78.70 points, or 0.93% at the day's low of 8,510.70 in late trade.

Key benchmark indices had dropped yesterday, 9 November 2016, with the Sensex and the Nifty, both, sliding to settle at 4-month low on government's black money crackdown and outcome of US presidential election. The barometer index, the S&P BSE Sensex, fell 338.61 points or 1.23% to settle at 27,252.53 and the Nifty 50 index fell 111.55 points or 1.31% to settle at 8,432 yesterday, 9 November 2016.

Back home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 2,029 shares rose and 721 shares fell. A total of 132 shares were unchanged. The BSE Mid-Cap index rose 1.65%. The BSE Small-Cap index rose 1.75%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 3726.46 crore, lower than turnover of Rs 5465.90 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Metal index (up 6.04%), the S&P BSE Bankex (up 3.63%), the S&P BSE Telecom index (up 3.36%), the S&P BSE Basic Materials index (up 2.92%), the S&P BSE Utilities index (up 2.78%), the S&P BSE Power index (up 2.69%), the S&P BSE Finance index (up 2.37%), the S&P BSE Realty index (up 1.99%), the S&P BSE Capital Goods index (up 1.77%), the S&P BSE Energy index (up 1.68%), the S&P BSE Oil & Gas index (up 1.61%), the S&P BSE Industrials index (up 1.33%), the S&P BSE Healthcare index (up 1.24%) outperformed the Sensex. The S&P BSE FMCG index (up 0.69%), the S&P BSE Teck index (down 0.06%), the S&P BSE Consumer Durables index (down 0.07%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.29%), the S&P BSE Auto index (down 0.71%) and the S&P BSE IT index (down 0.72%) underperformed the Sensex.

PSU bank stocks logged sharp gains. Vijaya Bank (up 16.38%), Indian Bank (up 18.16%), Dena Bank (up 12.87%), Punjab National Bank (up 11.86%), Bank of Baroda (up 9.03%), Canara Bank (up 6.74%), IDBI Bank (up 4.7%), and Union Bank of India (up 11.16%) gained.

State Bank of India (SBI) jumped 8.41%. The bank said that Executive Committee of Central Board has accorded its approval for issuance of Long Term Bonds of Rs 5000 crore for financing of Infrastructure and Affordable Housing (Infra Bonds) during FY 2017 on private placement in tranches at appropriate time in domestic as well as overseas market. The announcement was made during market hours today, 10 November 2016.

Bank of India surged 12.97% after the bank reported net profit of Rs 126.84 crore in Q2 September 2016 compared with net loss of Rs 1126.24 crore in Q2 September 2015. Bank of India's total income rose 1.33% to Rs 11469.11 crore in Q2 September 2016 over Q2 September 2015. The bank said that the figures of Q2 September 2016 are not comparable with those of Q2 September 2015. The result was announced during market hours today, 10 November 2016.

The bank's provisions and contingencies fell 29.07% to Rs 2296.22 crore in Q2 September 2016 over Q2 September 2015. The provision coverage ratio stands at 55.23% compared with 55.08% in the previous period.

The bank's gross non-performing assets (NPAs) rose to Rs 52261.95 crore as on 30 September 2016 compared with Rs 51874.50 crore as on 30 June 2016 and Rs 29893.67 crore as on 30 September 2015. The ratio of gross NPAs to gross advances rose to 13.45% as on 30 September 2016 as against 13.38% as on 30 June 2016 and 7.55% as on 30 September 2015. The ratio of net NPAs to net advances stood at 7.56% as on 30 September 2016 compared with 7.78% as on 30 June 2016 and 4.31% as on 30 September 2015.

Private bank stocks rose. HDFC Bank (up 1.94%), RBL Bank (up 1.07%), ICICI Bank (up 3.91%), Axis Bank (up 3.85%), IndusInd Bank (up 1.27%) and Yes Bank (up 5.86%) rose. Kotak Mahindra Bank shed 0.29%.

Cipla gained 6.85%, with the stock shrugging off the company's announcement of weak Q2 results. Cipla said that consolidated net profit dropped 34.75% to Rs 354.34 crore on 8.39% rise in total income to Rs 3778.25 crore in Q2 September 2016 over Q2 September 2015. The company said the results are not strictly comparable to Q2 September 2015 results. The Q2 September 2016 earnings include revenue from InvaGen Pharmaceuticals, a US-based company that Cipla acquired in February this year, and as Q2 September 2015 results included profit from Esomeprazole. The result was announced after market hours yesterday, 9 November 2016.

Cipla said that Q2 September 2016 reflected improved profitability in base business driven by better product and geography mix. The company launched 6 new products during this quarter in the US market and continues to invest in building a niche and differentiated product portfolio, Cipla said. Commenting on the results, Umang Vohra, MD and Global CEO, Cipla said that the company continues to stay focused on building operational efficiencies and strengthening presence in priority markets.

Sun Pharmaceutical Industries rose 0.88%. The company's consolidated net profit surged 117.25% to Rs 2235.14 crore on 19.98% rise in total income to Rs 8384.52 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours today, 10 November 2016.

Index heavyweight Reliance Industries (RIL) was up 0.44% at Rs 1,010. The company during market hours today, 10 November 2016, said that Tokyo-Mitsui O.S.K. Lines announced the delivery of the new building Very Large Ethane Carrier (VLEC) Ethane Crystal, by Samsung Heavy Industries (SHI), for RIL on 9 November 2016.

State-run Power Grid Corporation of India rose 4.38% after net profit rose 32.01% to Rs 1872 crore on 29.86% growth in total income to Rs 6480.20 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 9 November 2016.

Bosch fell 1.96%. The company's net profit rose 79.2% to Rs 703.74 crore on 9.59% rise in total income to Rs 3026.96 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 9 November 2016.

Metal shares rose as copper price edged higher in the global commodities markets. Tata Steel (up 9.38%), Jindal Steel & Power (up 8.62%), Hindalco Industries (up 8.28%), Hindustan Copper (up 6.29%), Steel Authority of India (up 5.73%), Vedanta (up 4.96%), NMDC (up 4.70%), JSW Steel (up 4.40%), Bhushan Steel (up 3.68%), National Aluminium Company (up 2.83%) and Hindustan Zinc (up 1.62%), edged higher.

High Grade Copper for December 2016 delivery was currently up 4.29% at $2.565 per pound on the COMEX.

Realty stocks rose. DLF (up 5.31%), Indiabulls Real Estate (up 3.43%), Housing Development and Infrastructure (up 4.92%), D B Realty (up 6.01%), Unitech (up 2.45%), Oberoi Realty (up 0.58%) and Parsvnath Developers (up 5.01%) gained. Sobha (down 0.37%), Godrej Properties (down 2.75%), Prestige Estates Projects (down 5.23%) fell.

Telecom stocks were in demand. Tata Teleservices (Maharashtra) (up 6.45%), MTNL (up 4.52%), Reliance Communications (up 3.20%), Bharti Airtel (up 2.14%) and Idea Cellular (up 0.97%), edged higher.

Telecom tower infrastructure provider Bharti Infratel rose 6.26% to Rs 387.

Pidilite Industries fell 1.29%. The company's consolidated net profit rose 13.1% to Rs 231 crore on 9.1% growth in gross sales to Rs 1522 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 9 November 2016.

Motherson Sumi Systems jumped 5.99% after consolidated net profit rose 26.17% to Rs 479.85 crore on 14.29% growth in total income to Rs 10337.08 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 10 November 2016.

Uflex jumped 4.86% after the company announced the launch of profile pouch for liquids with sonically sealed spout. The announcement was made during market hours today, 10 November 2016.

Parag Milk Foods fell 0.82%. The company's consolidated net profit rose 47.8% to Rs 14.33 crore on 0.7% rise in revenue from operations to Rs 472.84 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 9 November 2016.

Meanwhile, the Sensex has fallen 412.53 points or 1.48% in November 2016 so far (till 10 November 2016). The Sensex has risen 1,400.14 points or 5.36% in calendar year 2016 so far (till 10 November 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,023.07 points or 22.33%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 1,559.60 points or 5.36%. The Sensex is off 2,507.06 points or 8.35% from a record high of 30,024.74 hit on 4 March 2015.

On the macro front, the figures for direct tax collections up to October 2016 show that net collections are at Rs 3.77 lakh crore which is 10.6% more than the net collections for the corresponding period last year. Till October 2016, 44.5% of the Budget estimates of direct taxes for financial year 2016-17 has been achieved.

The figures for indirect tax collections (Central Excise, Service Tax and Customs) up to October 2016 show that net revenue collections are at Rs 4.85 lakh crore which is 26.7% more than the net collections for the corresponding period last year. Till October 2016, 62.4% of the Budget estimates of indirect taxes for financial year 2016-17 has been achieved.

In overseas stock markets, European shares advanced today, 10 November 2016, led higher by miners and banks, with encouraging results from companies such as Vivendi supporting the broader market. Asian stocks edged higher to join a global rebound on speculation Donald Trump will pursue business-friendly policies. Japan's Nikkei 225 ended 6.72% higher.

US stocks rallied yesterday, 9 November 2016, led by a surge in financial, health-care and industrial stocks, as investors bet on the infrastructure spending policy promised by President-elect Donald Trump.

Trump was declared as the 45th President of the United States yesterday, 9 November 2016. According to reports, investors were focusing on Trump's key policy priorities including generous tax cuts and higher infrastructure and defence spending, along with deregulation for banks.

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