Indices end at record closing high; Nifty settles Oct expiry above 10,300

All that happened in the market today

2:38 PM

Result review: Mindtree

 

Mindtree’s 2.1% growth in 2QFY18 in constant currency (CC) terms was below our expectation of 3.5%. However, 90bps of cross currency tailwind helped the company to deliver 3% QoQ growth in USD terms. Though were expecting only ~6%-7% in USD revenue growth for FY18  against company’s guidance of low double-digit growth at the start of the year (which was lowered to high single-digit growth post 1QFY18), we were expecting a good performance from Mindtree in a seasonally strong 2Q.

 

Post 2QFY18, we have retained our Sell rating on Mindtree with a September 2018 target price of Rs426 based on 11.0x September 19E EPS (20% discount to the target P/E multiple we have assigned to Infosys and TCS). Our EBIT margin and EPS estimates for FY19 and FY20 have been increased as we have decreased the capex number (current run-rate has been fairly muted), resulting in lower depreciation. While the stock price is down ~40% from its life-time high, we see more downside.

 

(Source: Report by Girish Pai, Head of Equity Research, Nirmal Bang Institutional Equities)

2:18 PM

RCom shares fall 5% as the company plans to shut down 2G operations

 

Continuing to fall for the second straight session, shares of Reliance Communications today fell by nearly 5 per cent amid buzz that the debt-ridden company is planning to shut down its wireless telephony business.

 

After a weak opening, shares of the company further lost 4.55 per cent to Rs 15.70 - 52-week low - on BSE.

2:10 PM

US Fed meeting preview

 

At the Oct 31-Nov 1 meeting, we expect the Fed to recognise the economy is sound despite hurricane activity, while maintaining its close watch on the incoming data on inflation. We expect the Fed to next raise rates at its December meeting, resuming its previously established gradual pace. 

 

Rates markets are not yet focused on the November 1 FOMC meeting statement, in part because investors do not expect meaningful changes in the language. Instead, investors are consumed by uncertainty over the next Fed Chair and the prospects for tax reform before year-end.

 

(Source: Morgan Stanley)

2:06 PM

5 non-A group stocks zoom over 100% in October

 

Sanwaria Consumer, Shree Ganesh Biotech (India), Avon Lifesciences, Polo Queen Industries and Shiva Granito are five of the non-A group stocks that saw their market value  zoom in the range of 140% to 210%, so far in the month of October.

 

Except Sanwaria Consumer which in B group and featured in the S&P BSE Smallcap index, the remaining four stocks trading under XD, XT and M segment on the BSE. READ MORE

1:50 PM

BSE PSU index hits highest level since December 2010

 

Shares of public sector undertaking (PSU) companies including banks are on a roll with the BSE PSU index hitting nearly seven-year high after strong rally in metal, banking, oil & gas sector stocks.

 

Steel Authority of India (SAIL) and Bharat Heavy Electricals (BHEL) were up more than 10% each in intra-day trade, while, Engineers India, NLC India, IFCI, Union Bank of India, NMDC, IDBI Bank, Corporation Bank and Punjab National Bank (PNB) from the index up in the range of 5% to 8% on the BSE. READ MORE

1:33 PM

Unlike peers, HCL Technologies sure-footed

 

HCL Technologies’ September quarter results were mixed — the growth in top line was below analysts' estimates, but the operating margin performance was in line with expectations. However, the management’s commentary was positive and could buoy the sentiment.

 

 The stock, which dipped nearly four per cent intra-day, erased the losses towards close, ending just 0.7% lower. Revenues grew 2.3% sequentially at Rs 12,434 crore, below the three-per-cent-level pegged by analysts. READ MORE

1:18 PM

Markets are discounting BJP victory in Gujarat elections

 

With the Election Commission (EC) calling elections in Gujarat, analysts believe political considerations are likely to play a more dominant role in driving economic decisions. Markets at current levels, though are pricing in a BJP victory to some extent, they are likely to trade sideways till the final outcome is known.

 

Between now and the general elections (likely in May 2019) there are 12 assembly polls, which analysts say, in a way will also be interpreted as a referendum on the Modi-led government's two key reforms - the note ban drive and goods and services tax (GST) implementation. READ MORE

1:00 PM

Market Check at 1 pm

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,070.37	+27.87	+0.08
S&P BSE SENSEX 50	10,699.59	+17.25	+0.16
S&P BSE SENSEX Next 50	35,818.10	+340.45	+0.96
S&P BSE 100	10,743.63	+31.39	+0.29
S&P BSE MidCap	16,352.77	+103.41	+0.64

12:42 PM

Optimism on PSU banks justified, but selectively

 

In an extended Diwali party for public sector banks (PSBs), the mega-bailout announced by the government on Tuesday pushed their stocks to record the biggest single-day gain on Wednesday.  Big or small, the entire pack was buzzing with gains ranging between 18% and 41%.

 

While giants such as the State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) spiralled 27-41 per cent, smaller peers such as Canara Bank, Bank of India, Union Bank, Indian Bank, Allahabad Bank and IDBI Bank jumped 20-35%. READ MORE

12:28 PM

Slips in trade

 

PI Industries lost 5.94% to Rs 735.25 on BSE after net profit dropped 20.75% to Rs 80.34 crore on 3.13% rise in net sales to Rs 561.08 crore in Q2 September 2017 over Q2 September 2016.

12:13 PM

Nifty PSU Bank index pares gains to trade 1% lower

Source: NSE

11:53 AM

Buzzing stock

GVK Power & Infrastructure rose 4.95% to Rs 16.33 at on BSE after the company confirmed that it received the order for Navi Mumbai Airport.

11:36 AM

Top Sensex gainers and losers

Source: BSE

11:21 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,977.15	-65.35	-0.20
S&P BSE SENSEX 50	10,675.01	-7.33	-0.07
S&P BSE SENSEX Next 50	35,684.54	+206.89	+0.58
S&P BSE 100	10,716.29	+4.05	+0.04
S&P BSE MidCap	16,291.41	+42.05	+0.26

10:59 AM

Buzzing in Trade

Larsen & Toubro (L&T) was up 3% at Rs 1,243 on the BSE after the company announced that its construction arm has won orders worth Rs 3,551 crore across various segment. The stock had rallied 6% on Wednesday.

 

“The company’s transportation infrastructure & water effluent treatment business have jointly bagged an order worth Rs 1,123 crore from a prestigious government client for design and construction of smart trunk infrastructure with roads, storm water drains, water supply network, sewerage network and others,” L&T said in a press release. READ MORE