Sensex gains 227 pts, ends above 44K, Nifty settles at 12,938; M&M up 11%

All that happened in the markets today

1:58 PM

MARKET CHECK | Sensex gains 176 pts

1:48 PM

Inconsistent growth across segments to weigh on Godrej Consumer valuations

Despite Godrej Consumer Products (GCPL) delivering double-digit revenue growth in the September quarter (Q2) and its valuations remaining the lowest among peers, investors aren’t rushing to accumulate the stock. The GCPL stock has risen marginally since its results were announced last week and flat over the last three months. READ MORE

1:40 PM

Tata Motors hits nine-month high; stock advances 33% in one month

Tata Motors reported a healthy operational performance in July-September (Q2FY21). Consolidated margins were at 12.5 per cent amid return to the double-digit margin in Jaguar Land Rover (JLR) at 11.1 per cent and EBITDA (earnings before interest, taxes, depreciation, and amortisation) breakeven in India passenger vehicles (PV) business. READ MORE 

1:31 PM

NEWS ALERT :: Nalco Board approves interim dividend of Rs 0.50/sh

>> Dividend to be paid on the paid-up equity share capital of Rs. 932.81 crores for the financial year 2020-21.

>> The payment of interim dividend shall be made on or before 17.12.2020 to all eligible shareholders.
 

1:23 PM

Q&A | Economic momentum will be lost through 2021: CLSA

Growth in developed economies will weaken in the fourth quarter of calendar year 2020 (Q4-20) and the first quarter of calendar year 2021 (Q1-21) because of the second wave of Covid-19. This is already visible in European data where lockdowns are being re-imposed at the national level. It is only a matter of time before US data softens as state-level lockdowns are now starting to be re-imposed. The consensus is too optimistic on 2020 growth in developed economies for this reason. Growth in emerging markets is likely to be more resilient, as they are more recent in their emergence from the Covid-19 ‘first wave’. READ FULL INTERVIEW HERE

Eric Fishwick, chief economist at CLSA & Anthony Nafte, senior economist at CLSA (Photo: Dalip Kumar)

1:17 PM

BROKERAGE VIEW | Emkay Global on Bharat Forge

RATING: BUY | TARGET PRICE: Rs 601 

BHFC’s leadership position in automotive forgings, focus on diversification and an expected cyclical recovery in the core segments support our positive view. We have a Buy rating on the name and OW stance in EAP, with a TP of Rs601, based on 25x P/E for the standalone business on FY23E.

Key risks: 1) delay in recovery in domestic/North America CV segments, 2) further downturn in the industrial segments, and 3) adverse currency movement.

1:16 PM

BUZZING STOCK :: M&M extends gains, zooms over 11%

1:11 PM

NEWS ALERT :: Lakshmi Vilas Bank to hold press conference at 3 pm today

1:00 PM

BROKERAGE VIEW | HDFC Securities on Eicher Motors

RATING: REDUCE | TARGET PRICE: Rs 2,100

Eicher reported 2QFY21 PAT at Rs 3.4bn (-34% YoY, up sharply QoQ). The OEM has rolled out the ‘Meteor 350cc’ on a new platform along with personalisation options (MIY), which is expected to be a ‘differentiator’. The new launch comes at a time when the competition is increasing – the Honda H’ness CB350 has just been launched. We value the RE business at 23x PE, which is at a 25% premium to the mass market OEMs. The stock is trading at 43.7/29.8x FY21/22E. We set a revised Sep-22 TP of Rs 2,100 (we are raising our FY22/23E by 5%). Key risks: Faster-than-expected economic pick-up, encouraging response to new launches.

12:52 PM

NEWS ALERT :: Sadbhav Engineering wins order worth Rs 1,572.3 cr from NHAI

12:43 PM

Dhanlaxmi Bank CEO case to test primacy of RBI over banks' shareholders

The removal of Sunil Gurbaxani from the corner room at Dhanlaxmi Bank in a shareholder coup has led the private banking system into uncharted waters.

 

Should the Reserve Bank of India (RBI) go along with what a bank’s shareholders deem fit by exercising their rightunder the Companies Act? Or should it reinstate a helmsman (in the immediate instance Gurbuxani) to underscore its powers, and the primacy of the Banking Regulation Act (BR Act: 1949), if it were to feel otherwise? READ MORE
 

12:34 PM

Tanla Platforms advances 5%, hits record high as two PE firms pick stake

American Funds Insurance Series A/c International Fund purchased 8.6 million shares or 6.32 per cent stake, while Amansa Investments has acquired 4.08 million shares of 3 per cent stake in Tanla Platforms at price of Rs 391.30 per share. Besides, Mobile Techsol Private Limited, the promoter group, has also increased its stake by buying 1.71 million shares or 1.25 per cent stake in the company. READ MORE

12:25 PM

Analysts bullish on mid-and small-caps; expect outperformance in 2021

The S&P BSE Small-cap index has outperformed with a rally of 86 per cent from its lowest intra-day level in March 2020 to 16,003 levels now, the S&P BSE mid-cap index has moved up 70 per cent during this period – mostly in line with the S&P BSE Sensex that has gained around 72 per cent, data show. READ MORE 

12:15 PM

Aditya Birla Capital: High on diversification, not much on conviction

Nearly two years ago, when Aditya Birla Capital (AB Capital) stock was listed following its demerger with Grasim Industries at Rs 250 a stock, there was a lot of optimism around it as it was the only non-banking finance company (NBFC) with presence across categories – insurance, asset management company (AMC), housing finance (HFC) and pure-play lending. READ MORE

12:05 PM

Lakshmi Vilas Bank failed and this time India is getting a rescue right

Another Indian bank has failed, the third collapse of a major deposit-taking institution in 15 months and the first since the onset of the coronavirus pandemic. But instead of allowing a zombie lender to linger after a half-baked rescue, the central bank has wisely decided to put Lakshmi Vilas Bank Ltd. out of its misery. Better still, it’s called upon a foreign institution to take over the assets and liabilities. That should stoke interest of other global banks. READ MORE