MARKET WRAP: Indices rise for 6th day; Sensex up 304 pts, reclaims 40K

All that happened in the markets today

12:18 PM

Recovery in US commercial vehicle sales to support Bharat Forge's revenues

Bharat Forge has gained over 22 per cent since the start of August on signs of recovery of medium and heavy commercial vehicle sales in Europe and the US. Expectations of orders from the defence sector especially on artillery guns helped boost sentiment for the stock.

 

Brokerages have highlighted some improvement in Indian passenger and commercial market which could help improve supplies to auto makers. The immediate trigger for the company would be the rising trend of heavy duty truck orders (Class 8 trucks) in North America which account for a fifth of its standalone revenues READ MORE

12:08 PM

Mazagon Dock Shipbuilders IPO: Here's how to check share allotment status

The Rs 440-crore initial public offering (IPO) of Mazagon Dock Shipbuilders saw strong demand and was subscribed 157 times against the shares on offer, making it one of the most-subscribed public offering of a state-owned company. The offering generated bids worth Rs 70,000 crore, with the high networth individual (HNI) portion of the issue getting 679 times subscription. The retail portion was subscribed nearly 4 times, while the institutional investor category was over-bid by 90 times. READ MORE

11:59 AM

BSE IT index zooms over 1000 points; Mindtree, L&T Infotech rally 11%

Among individual stocks, Mindtree and Larsen & Toubro Infotech rallied 11 per cent in the intra-day trade on the BSE today. Meanwhile, TCS, HCL Technologies, Infosys, Mphasis, Sasken Technologies, Wipro, Aptech, KPIT Technologies, Sonata Software, Coforge, Ramco Systems and Persistent Systems were up 5 per cent to 8 per cent. READ MORE

11:48 AM

Amazon takes on Future Group over deal with Reliance, sends legal notice

A top industry source said the notice was unexpected as Biyani had first approached Amazon for a takeover of the Future Group companies before defaulting to its lenders and suppliers. “It was only after Amazon said no, that the Biyani group started talking to Reliance,” said a banker close to the development. “Anyway, RIL bought the assets and not the company,” he said. READ MORE

 

11:36 AM

MARKET CHECK :: Nifty nears 11,900

11:26 AM

Bandhan Bank extends gain post Q2 business update; soars 14% in 1 week

Deposit accretion also remained healthy at 34 per cent YoY to Rs 66,153 crore with CASA (current account-savings account) ratio at 38.2 per cent (up 530 bps YoY). Further, the lender said 94 per cent of microfinance customers paid in the month of September alone, which shows an increasing trend in repayment. READ MORE

11:13 AM

NEWS ALERT :: Infosys to acquire Blue Acorn iCi

11:08 AM

Cos start tapping Masala Bonds as economy restarts, raise Rs 500 cr in Aug

As the country unlocks gradually, companies in need of funds are tapping the overseas markets by issuing masala bonds (or rupee-denominated bonds). In August, there were eight such masala bond issuances, raising Rs 501 crore, showed the data released by the Reserve Bank of India. READ MORE

10:57 AM

Cadila Healthcare rises 4% on launch of pressurized Metered Dose Inhaler

Shares of Cadila Healthcare rose 4 per cent to hit a 52-week high of Rs 428 on the BSE on Thursday after the company launched India’s first pressurized Metered Dose Inhaler (pMDI) for patients suffering from chronic obstructive pulmonary disease. The pharmaceutical company's stock surpassed its previous high of Rs 423.50, touched on October 6, 2020. READ MORE

10:48 AM

NEWS ALERT :: Indian economy to shrink 9.6% in FY21, says World Bank

>> FY22 GDP seen growing at 5.4%

10:45 AM

MARKET CHECK

10:43 AM

Chart check: Should you stay invested in TCS, Wipro at the current levels?

Shares of Tata Consultancy and Wipro gained ground on Thursday. While TCS hit a fresh high on better-than-expected financial performance for the July - September 2020 quarter (Q2FY21) and the proposed buyback of shares amount to Rs 16,000 crore at Rs 3,000 apiece, Wipro surged 5 per cent at Rs 353, hitting a fresh over 20-year high on the BSE after the company said the board will consider a buyback proposal on Tuesday, October 13. READ MORE

10:36 AM

BROKERAGE VIEW :: MOFSL on RBL Bank

CMP: Rs 177 | TP: Rs 230 (+30%) | Reco: Buy

>> : RBL reflected weak advances growth, led by decline in the wholesale portfolio. On the other hand, the retail portfolio reflected strong sequential growth. We believe the uptick in retail growth would be led by MFI and Credit Cards. Also, credit card growth at the systemic level stood at ~13% QoQ. The bank reflects strong traction in garnering CASA deposits. On the asset quality front, we expect slippage trends to remain elevated in the unsecured and BB & below rated portfolios. Thus, credit cost would remain high at 3.7% for FY21E. Maintain Buy, with TP of INR230 (1.1x FY22E ABV).

10:34 AM

BROKERAGE VIEW :: MOFSL on Bandhan Bank

CMP: Rs 315 | TP: Rs 425 (+35%) | Reco: Buy

>> As economic activity continues to recover, we are seeing a steady improvement in collection trends. Bandhan’s collection efficiency in the MFI portfolio has improved to ~89% (guidance of 90%). For the overall portfolio, it has improved to ~92%, which should keep asset quality / restructuring book under control.

>> Furthermore, the bank holds COVID-19- related / excess standard provisions of INR17.7b to manage higher delinquencies over FY21. We expect LGD to remain lower (v/s peers) given Bandhan’s strong market share and higher unique customer base.

>> Nevertheless, we estimate credit cost of 2.7% for FY21, of which ~1.2% has already been recorded in 1QFY21 (1.6% in 4QFY20). We maintain a Buy rating, with unchanged TP of INR425 (3.2x FY22E BV).

10:33 AM

BROKERAGE VIEW :: MOFSL on Titan

CMP: Rs 1,253 | TP: Rs 1,400 (+12%) | Reco: Buy

>> TTAN’s end-of-quarter update indicating 98% recovery in Jewelry in 2QFY21 (excluding pure gold sales) reflects a faster-than-expected rebound.

>> Management had guided for growth to resume in 4QFY21, which we factored in our estimates. However, we believe that with the bunching up of wedding and festive demand, growth may be seen in 3QFY21, earlier than guided.

>> Some of the demand rebound may be attributable to the advancement of purchases as gold costs fell in Sep’20. Nevertheless, it does seem that a large part of the COVID travails are now behind.

>> Despite recovery, we do expect some pressure on margins due to the impact of INR3.9b pure gold sales and some ineffective hedges. However, both of these factors are temporary in nature and would not affect subsequent quarters.

>> The structural investment case for TTAN remains extremely strong. Maintain Buy, with TP of INR1,400 at 55x Sep’22 EPS.