Sensex ends 116 pts higher, Nifty settles above 10,150; Airtel up 5%

Catch all that happened in the market here

12:22 PM

Sectoral trend

Source: NSE

12:07 PM

Telecom shares rally

 

Shares of telecom services providers rallied with Idea Cellular and Reliance Communications up more than 5% each, and Bharti Airtel at eight-year high on the BSE. MTNL, Tata Communications and Reliance Industries, too, were trading higher in the range of 1% to 3% as compared to 0.2% rise in the S&P BSE Sensex.

 

The S&P BSE Telecom index, the largest gainer among sectoral indices, was up 1.6%, hitting record high of 1,624 points in intra-day trade on Monday. READ MORE

Source: BSE

 

11:53 AM

Why investors view bitcoin as a risky investment despite a ten-fold price surge

 

Bitcoin is booming, digital currency hedge funds are sprouting at the rate of two a week and the value of all cryptocurrencies has surged tenfold this year to more than $170 billion.

 

Yet for all the hype, mainstream institutional investors are steering clear of the nascent market, taking the view that it is too lightly regulated, too volatile and too illiquid to risk investing other people's money in. READ MORE

Bitcoin

11:36 AM

Govt likely to achieve fiscal deficit target of 3.2% in FY18: SBI report

 

The government is likely to achieve its fiscal deficit target of 3.2 per cent this financial year as the budgeted disinvestment receipts are on track to realise Rs 72,500 crore, says an SBI research report.

 

According to the report, though there are predictions that the government is going to have a big revenue slippage in 2017-18 which may impact fiscal deficit numbers, "such projections flunk the test of logical reasoning and are grossly misconstrued". READ MORE

11:24 AM

Market Check

At 11:25 am, the S&P BSE Sensex was trading at 32,458, up 68 points while the broader Nifty50 index was ruling at 10,173, up 26 points.

In Broader markets, BSE Midcap gained 0.5% while BSE Smallcap was little changed

11:12 AM

Reliance Nippon AMC IPO: Should you invest?

 

Sticking to its schedule, Reliance Capital is on track to list its asset management arm – Reliance Nippon Life Asset Management (RNLAM). The issue, which would open on October 25, has many positives such as a diversified asset base with strong investment track record. 

 

These attributes have helped RNLAM grow its business profitably. Equally important is its positioning as number three player (11.4 per cent market share, as per ICRA) among asset management companies (AMCs), which is aided by an exhaustive distribution network. 

 

While these pluses augur well, the initial public offering (IPO) priced at 36x FY17 earnings on pre-issue basis and 38x on post-issue basis seem to leave little on the table for those interested in immediate listing gains. The offer may, hence, be best suited for long-only investors. READ MORE

11:04 AM

Gold hits over two-week low as dollar rallies vs yen

 

Gold hit its lowest in over two weeks early on Monday, as the dollar climbed to a more than three-month high versus the yen after Japan's ruling bloc scored a big win in Sunday's election, leaving the door open to ultra-loose monetary policy for longer.

 

Spot gold was down 0.4% at $1,275.70 an ounce, after hitting its lowest since Oct. 6 at $1,273.80 earlier in the session. READ MORE

10:50 AM

Indian Energy Exchange makes weak debut; lists 9% below issue price

 

Indian Energy Exchange (IEX) has made a weak debut on the bourses by listing at Rs 1,500, a 9% below its issue price of Rs 1,650 on the National Stock Exchange (NSE) and the BSE (Bombay Stock Exchange).

 

However, the stock recovered and was trading at Rs 1,636, a 9% higher against its listing price. It hit high of Rs 1,640 and Rs 1,649 on NSE and BSE respectively. READ MORE

10:31 AM

Nifty IT gains ahead of Infosys results

Source: NSE

10:20 AM

Why the Street is bullish on Bharti Airtel

 

The Bharti Airtel stock has gained 24 per cent over the past 10 trading sessions, despite the competitive pressure and regulatory headwinds in the telecom segment. 

 

And not just in the recent past, over the past 12 months, too, the stock is up from Rs 307 levels to Rs 471 at Thursday’s close, even while Reliance Jio entered the sector last September and offered free services till recently.  READ MORE

Bharti Airtel

10:11 AM

Assets decline at top fund houses in September

 

Several fund houses reported a decline in their assets under management (AUM) during the month of September. Huge outflows from certain debt schemes and correction in stock prices impacted assets, say industry players.  

While the overall AUM declined one per cent in September over the previous month, several fund houses witnessed a much bigger dent. HSBC Mutual Fund, DHFL Pramerica, LIC Mutual Fund and Axis Mutual Fund saw the steepest double-digit drop in AUM. READ MORE

10:03 AM

India's largest companies cut hiring by 45% in FY17

 

The increase in net employees at India’s largest companies slowed down to 66,000 people in the 2016-17 financial year compared with 123,000 people a year earlier. 

 

At the end of FY17, a total of 3.25 million people were on the rolls of 241 companies of the BSE 500 index versus 3.19 million at the end of FY16. 

 

Data on employee strength was not available for the rest of the BSE 500 index companies. Tata Consultancy Services (TCS), Tech Mahindra, ICICI Bank and Axis Bank were the large employers to lead fresh hiring during FY17. READ MORE

9:51 AM

Sectoral Trend: All sectoral indices were trading in green

Source: NSE

9:37 AM

Investors should become more selective on mid-caps now: Andrew Holland

 

With the frontline indices ruling near all-time high, ANDREW HOLLAND, chief executive officer of Avendus Capital Alternate Strategies, shares his concerns about the markets from a short-term perspective. The ‘buy on dips’ strategy of domestic investors will be tested on a serious market correction, he tells Puneet Wadhwa.

READ FULL INTERVIEW HERE

Andrew Holland, chief executive officer, Avendus Capital Alternate Strategies

9:34 AM

Economy watch

 

There are doomsday predictions currently that Government will see a big revenue slippage in FY18 which may impact the headline fiscal deficit numbers. However, such projections flunk the test of logical reasoning and are grossly misconstrued.

 

As per our estimate, there may still be a shortfall of Rs. 1.1 lakh crore in the revenue receipts. To manage the fiscal deficit, Government however needs to cut expenditure substantially. We estimate that Government may cut around Rs. 70,000 crore from the capital expenditure. However, the good news is that budgeted disinvestment receipts are on track to realizing Rs. 72,500 crores. At current trends, it is likely that for the first time after FY10 that disinvestment target is likely to be achieved.

 

Also, the Government has accumulated a total of Rs. 40,491 crore in the National Small Saving Fund during the first five months of this fiscal. The Government could thus receive Rs. 1 lakh crore in small savings in FY18, and would be able to do a buyback of Rs. 75000 crore which was contingent upon that. This in turn implies that the Government would be able to meet its net borrowing target of Rs. 3.48 lakh crore.

 

 

(Source: Report by Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI)