Share Market Highlights: Sensex ends 448 points higher, Nifty at 11,873; GAIL, SBI, Nestle top gainers

Sensex, Nifty Highlights on October 19: Market indices traded on a bullish note on Monday, amid positive Asian equities. Sensex ended 448 points higher at 40,431 and Nifty gained 110 points to 11,873. Meanwhile, September quarterly earnings announcements by HDFC Life Insurance Company, Britannia Industries, ACC, L&T Technologies, Bank of Maharashtra, Rallis India and CSB Bank will also set the tone for the stock market today. Last Friday, Sensex ended 254 points higher at 39,982 and Nifty gained 82 points to 11,762.

Here's a look at the updates of the market action on BSE and NSE today

3. 50 PM: Market at close

Market indices traded on a bullish note on Monday, amid positive Asian equities. Sensex ended 448 points higher at 40,431 and Nifty gained 110 points to 11,873.

3. 38 PM: Market outlook

S Ranganathan, Head of Research at LKP Securities said, "As we inch closer to the US Elections the street is bracing towards volatile markets ahead. Today markets ended firmly in the Green despite profit booking witnessed in Autos & Pharma as we saw spirited buying in Financials with good support from the FMCG space".

3. 22 PM: Tata Communications stock hits upper circuit

Tata Communications stock price today hit a 5% upper circuit after the comapny posted 7-fold rise in its profit for the Q2 earnings.

The company posted an around seven-fold jump in consolidated net profit at Rs 384.81 crore for the September quarter, as compared to a profit of Rs 54.31 crore in the corresponding period of the last fiscal.

Company's consolidated revenue registered a 4.5% YoY growth to Rs 4,477.18 crore during the July- September quarter as against Rs 4,282.3 crore in the year-ago period.

3. 10 PM: Federal Bank Q2 outlook

On Federal Bank 's Q2 results, Centrum Broking in its note said," For FY21 we lower loan growth that could be offset by higher NIM which would be PAT neutral. For FY22 we raise our provisions as some stress recognition could shift leading to a PAT decline of 8.4%. We like FB owing to lower stress and attractive valuation at 0.7x FY22 ABV. Maintain BUY and multiple/TP at 1.2x/Rs87. Risks: lower loan growth and higher stress."

2. 49 PM: DLF stock climbs 3.5%

DLF share gained over 3% today after the firm's rental arm raised Rs 2,400 crore from State Bank of India (SBI). The stock has gained 5.18% in the last 2 days. The stock touched an intraday high of Rs 167.9, gaining 3.45%. DLF share trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

DLF stock climbs 3.5% after firm raises Rs 2,400 crore from SBI

2. 36 PM: Rupee outlook

On Rupee's outlook, -Angel Broking in its note said," In the week gone by, Indian rupee depreciated by 0.44 percent and currently stands at 73.44 against the US dollar.  India's CPI inflation came in at 7.34 percent for September again breaching RBI's tolerance band for the sixth consecutive month. Retail inflation for August was 6.69 percent. US FED Vice Chairman Richard Clarida expressed his views on economic data being surprisingly strong since May though it will take another year for the output to reach pre pandemic levels in the US. Unemployment claims from the US also came in worse than expected at 898K. Meanwhile, the US senate will vote on a $500 billion stimulus package on 21st October according to Senate Majority leader Mitch McConnell."

On the currency's technical outlook, it added," With voting likely to happen on the stimulus package, USDINR (CMP: 73.44) is likely to move in range from 72.5 mark at the lower end of the spectrum and 74.5 mark at the higher end."

2. 20 PM: Tata Communication Q2 result update

Keshav Lahoti - Associate Equity Analyst, Angel Broking said,"Tata Communication share price opened in the upper circuit up by 5% due to strong Q2FY21 result. On a Consolidated basis for Q2FY21, Tata Communications reported 3% YoY growth in revenue to Rs. 4401.1 cr and QoQ basis revenue was flat. Net profit rose by 608% YoY to Rs.384.8 cr as EBIDTA margins improved significantly due to reduction in other expenses and network and transmission expenses and also due to increase in other income. Other income rose due to gain of Rs. 67.4 cr resulting from sale of land parcel. From a long term point of view, increasing usage of data and work from home culture is positive for the business of the Company. Reporting such strong performance will lead to re-rating for the Company. Overall, Company reported better numbers than street expectations."

2. 12 PM: Oberoi Realty Q2 earnings update

Yash Gupta - Equity Research Associate, Angel Broking said," Oberoi Realty Ltd reported a better than expected sales number for Q2FY21. Area booked for the quarter is 1.30 lakhs sq-ft down by 6.61%% as compared to 1.39 lakhs sq-ft in Q2FY20 including Three Sixty West. Pre-sales for the quarter at Rs 327.3 crores up by 1.4% as compared to 322.79 crores in Q2FY20. Consolidated revenue from operation at 316.06 crores in Q2FY21 down by 35.69% as compared to 491.95 crores in Q2FY20. Consolidated PAT stood at 137.74 crores in Q2FY21 down by 0.24% as compared to 138.07 crores in Q2FY20. Commercial office space occupancy has also come down  from 91.3% in Q2FY20 to 79.1% in Q2FY21."

1. 51PM: Equitas Small Finance Bank IPO opens tomorrow

The Rs 517.6 crore initial public offer (IPO) of Equitas Small Finance Bank (ESFB) will open for bidding from Tuesday, October 20 till October 22. The IPO consists of a fresh issue of Rs 280 crore (8.5 crore equity shares) and an offer for sale of 7.2 crore equity shares, taking the total issue size to Rs 517.6 crore.

As per the additional information to its DRHP filed with the market regulator, promoter Equitas Holdings held 95.49% stake in Equitas Small Finance Bank. Post the IPO, Equitas Holdings's stale will decline to about 82%.

The merchant bankers have fixed the price band at Rs32-Rs 33 per equity share and shares will be listed on the benchmark indices on November 2, 2020.

1. 44 PM: Nifty outlook

Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said,"In the last couple of weeks, we have seen a remarkable recovery in our market after testing the 200-SMA level of 10800. Since the move was extremely swift and markets had a winning streak of 10 straight sessions before Thursday, any uncertainty was likely to trigger profit booking and this is exactly what we have seen. Now, purely looking at charts, this down move should only be interpreted as a pull back towards the recent trend line breakout points. This coincides with the 20-day EMA level of 11600. Hence, all eyes would be on this level in this week.

However, since the fall has to do with the global uncertainty, it would be important to see how things pan out there and if things worsen, we may see the market correcting further. A close below 11600 would apply brakes on the recent optimism and we may then see some extended correction in the market. Till then there is no reason to worry as we may see markets resuming the strength beyond 11850-11900 to surpass the 12000 mark convincingly.

1. 37 PM: Mid-day market commentary

Yash Gupta- Equity Research Associate, Angel Broking said, "Indian Indices Nifty and Sensex, up by 81 points (0.70%) and 336 points (0.84%) respectively. Indian Indices opened higher on back positive global market clues but lost some of its earlier gains during the 1st half of the day. Heavyweights like ICICIBANK bank (3.98%) and HDFC (up 2.93%) are major contributors. Today S&P BSE Finance (up 1.79%), S&P BSE OIL & GAS (up 1.34%) while S&P BSE AUTO (down 1.06%), S&P BSE Healthcare (down 0.60%). We expect Indices to be volatile on back of global market clues. Global Market update - DOW Jones up by 112 points (up 0.39%) and NASDAQ down by 42 points (up 0.36%)."

1. 20 PM: HDFC Bank share rises over 2%

HDFC  Bank share rose over 2% in early trade after the lender announced a 18.4 per cent rise in net profit during September quarter of current fiscal. Rise in net interest income and pre-provision operating profit helped the bank post positive earnings in Q2. Share of HDFC Bank rose 2.49% to an intraday high of Rs 1228.8 against previous close of Rs 1199 on BSE. The stock opened at Rs 1,220, rising 1.72% against its closing price.

HDFC Bank stock trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

HDFC Bank share rises over 2% on strong Q2 earnings

1.07 PM: Prestige Estate update

Yash Gupta Equity Research Associate, Angel Broking said, "Prestige Estates Projects Ltd announced that the company has signed a non-binding agreement with certain entities, acting on behalf of funds controlled, managed and/or advised by The Blackstone Group, Inc. This agreement is for sale of certain of the Company's direct and indirect interest in certain commercial offices, retail and hotel properties, mall management and identified maintenance business. As per the different market news the deal may be in between Rs 10000 crores to Rs 12000 crores. Company will utilize this fund to pay off debts and future expansion. This is a very positive development for the company."

12. 58 PM: Rupee slips 7 apise

Indian rupee, the domestic currency benchmark, opened on a flat note and fell 7 paise to 73.42 per US dollar on Monday's opening deals, on fresh demand for the US currency from crude and gold importers. Capital inflows and strong domestic equities, however  limited the local currency's and kept losses checked.

Rupee slips 7 paise to 73.42 amid rising demand for US dollar

12. 42 PM: Dollar index

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09 per cent to 93.76. The dollar held on to gains supported by political uncertainty around the US elections and as investor turned optimistic about COVID-19 vaccine.

12. 38 PM: Top gainers and losers

ONGC, followed by NTPC, HDFC, Axis Bank, ICICI Bank, PowerGrid and Nestle India were among the top gainer on Sensex pack. On the other hand, TCS, Tech Mahindra, Infosys and Sun Pharma were among the laggards.

12. 22 PM: Oil index

Brent crude futures, the global oil benchmark, fell 0.30 per cent to USD 42.80 per barrel. Oil price slipped today, pulled down by fear over falling demand due to rising corona virus cases in US and Europe.

12. 18 AM: Route Mobile shares

Keshav Lahoti - Associate Equity Analyst, Angel Broking said, "Route Mobile listed at 105% premium over issue price on September 21, 2020 at Rs.717 and from listing price stock has further rallied 38% to touch all time high of Rs. 988. From the last few days stock have been witnessing profit booking. On Friday, during the day stock has hit a lower circuit of 10%, although it bounced back later to close down by 7.3%. We believe this correction could be due to profit booking by anchor investors as anchor investors lock in a period of 30 days from the date of share allotment is over. Investors can use such opportunities of correction to add position in the stock. We are bullish on the Company considering that it is a scalable business model, which can grow without capital infusion. Past track record of the Company is also quite promising. We expect the Company to continue to grow at similar rates like earlier years of 25-30% for at least next 2 years."

12.01 PM: Trade deficit

Jyoti Roy - DVP- Equity Strategist, Angel Broking said, "India's merchandise trade deficit for the month of September 2020 stood at USD 2.7bn as compared to USD 11.7bn in September 2019. Exports for September 2020 was up by 6.0% YoY to USD 27.58bn, while imports were down by 19.6% YoY to USD 30.31bn. The trade deficit has narrowed from Augusts USD 6.77bn due to year on year increase in exports. Oil imports were down by 35.9% YoY to USD 5.83bn while non oil imports were down by 14.4% YoY to USD 28.61bn.  The economic slowdown and sharp fall in fuel prices due to Covid-19 has led to compression of India merchandise trade deficit which coupled with strong FPI flows have led to a strengthening bias on the rupee. In order to counter an appreciating rupee the RBI has been intervening in the forex market which is reflected in India's foreign exchange reserves which has hit all time highs of USD 551bn as on the 9th of October. Going forward we expect overall BoP to remain in the surplus barring any unforeseen event which will put pressure on the USD relative to the INR. In order to counter the appreciating bias we expect continued intervention by the RBI in the forex market as the Government and the RBI would not want the rupee to appreciate significantly from current levels though may tolerate some amount of appreciation."

11. 53 AM: Stocks to watch today on October 19

HDFC Bank, Tata Communications, Avenue Supermarts, Bajaj Consumer, RIL among others are the top stocks to watch out for in Monday's trading session

Stocks in news: HDFC Bank, Tata Communications, Avenue Supermarts, Bajaj Consumer, RIL

11. 47 AM: Jet Airways stock hits 5% upper circuit

Jet Airways share hit upper circuit of 5% today after its committee of creditors cleared the revival plan submitted by UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.

Shares of Jet Airways rose 5% to Rs 42.15 against previous close of  Rs 40.15 in early trade. Total 7028 shares changed hands amounting to turnover of Rs 2.96 lakh on BSE.  Market cap of the firm rose to Rs 478 crore.

11. 38 AM: Alembic Pharma update

Yash Gupta- Equity Research Associate, Angel Broking said , "Alembic Pharmaceuticals Limited announced that it has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Amantadine Hydrochloride Tablets, 100 mg. The approved ANDA is therapeutically equivalent to the reference listed drug product, Symmetrel Tablets, 100 mg, of Endo Pharmaceuticals, Inc. Amantadine Hydrochloride Tablets are indicated for the prophylaxis and treatment of signs and symptoms of infection caused by various strains of influenza A virus. Amantadine Hydrochloride Tablets are also indicated in the treatment of parkinsonism and drug, induced extrapyramidal reactions. Amantadine Hydrochloride Tablets, 100 mg have an estimated market size of US$ 13 million for twelve months ending June, 2020 according to IQVIA. This is positive development for the company."

11. 22AM: Gold trades flat

Gold price was trading flat on Monday for the second stright session, above the key psychological level of Rs 50K. Overseas, gold traded in range-bound trade on Monday on hopes of a fresh U.S. fiscal stimulus package before elections but major gains were restricted due to strong dollar.

On MCX, Gold prices traded flat at Rs 50,605 today over its previous close of Rs 50,547 per 10 gm. Silver September Futures traded Rs 112 lower at Rs 61,564 per kg today.

Spot gold was up 0.1% at $1,900.79 per ounce, while Comex gold traded flat at $1,900 per ounce for the second session. Silver fell 0.6% to $24.15 per ounce.

Gold price trades flat for second day; silver rates at Rs 61,500

11. 18 AM: Coronavirus toll

Worldwide, there were 402 lakh confirmed cases and 10.96 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 75-lakh mark and the death toll from COVID-19 infections rose to 1.14 lakh, as of today.

11.02 AM: Gold update

Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said,"Last week, spot Gold prices ended lower by 1.6 percent  & Spot silver ended lower by 3.8 percent to close at $24.2 per ounce as strengthening of the U.S. currency made the Dollar denominated Gold less appealing for other currency holders. The Dollar rallied after U.S. Treasury Secretary Steve Mnuchin stated that the chances of a deal over the new coronavirus relief fund seemed to be unlikely before the November20 elections. Gold prices were further pressurized as Chinas economy continued to expand in September 20 reflecting the improvement in overseas demand which boosted the risk appetite amongst investors. However, the International Monetary Fund expressing worries over the outlook for many emerging markets as the virus continued to spread limited the losses for the safe haven, Gold. Hopes over additional corona relief fund by U.S. before the upcoming elections is expected to support Gold. On the MCX, gold prices are expected to trade higher in today's session. As for today traders can go for buy in gold at Rs 50,300 levels with the stop loss of Rs 50000 levels for the target of 50800 levels. They can also go for buy  in Silver at Rs 61,000 levels, with the stop loss of 60,200 levels and for the target of 62,100 levels."

10. 56 AM: Federal Bank quarterly update

LKP Securties in its note said," Federal Bank has reported sturdy earnings in 2QFY21 led by a) Strong NII growth (22.8% YoY) with improved NIMs of 3.13%, b) relatively healthy business growth with advance and deposit growth of 6.1% YoY and 12.3% YoY respectively, c) multi quarter low C/I ratio of 46.7% v/s 51.3% in FY20 and d) collections improvement as pre COVID level. However, the bank's PAT de-grew by 26% YoY and 23% sequentially owing to higher provisioning expenses (5.9bn v/s 3.9bn). As a result of higher provisioning the bank's PCR improved 320bps to 78.3%. Considering the 2QFY21 result and inexpensive valuation (P/BV: 0.7x), we maintain our positive outlook on the bank."

10. 44 AM: HDFC Bank quarterly update

Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," HDFC Bank reported an overall good set of numbers. Advance grew by 16% YoY and 3% QoQ, Retail book grew YoY / QoQ by 5% / 2 %, However, corporate book grew at healthy rate of 31% /5 % YoY/QoQ.  NII grew at 17% YoY in line with advance growth, though higher PPoP growth of 18% YoY owing to elevated treasury gains and improved fee lines. Reported NIM declined by ~20 bps QoQ to 4.1% driven by excess liquidity and rising share of lower-yielding corporate portfolio. The GNPA ratio declined 28bps QoQ to 1.08% (At 1.37% without SC order). However, the bank provided Rs2300cr on unrecognized NPAs, including Rs1170cr additional contingent provisions to shore up Covid-19-related provisioning. The bank does not expect much restructuring. The asset quality of the NBFC subsidiary, HDB Fin Services, remains above the historical average, with the GNPA ratio rising to 4.5% (vs. 3.4% in Q2FY20)."

He added," Currently, HDFC Bank is trading at 3.15x of FY22 ABV, which is lower compared to the historical average. We have a positive view on HDFC bank considering, reporting superior return ratio across the cycle and healthy provision coverage provide comfort on asset quality concern."

10. 31 AM: Market rises further

Market indices traded on a bullish note on Monday, amid positive Asian equities. SGX Nifty on the Singapore Exchange was rising 60 points higher, indicating positive trend in domestic grounds today. Sensex gained 457 points higher at 40,440 and Nifty was rising 116 points to 11,869.

10. 27 AM: Market outlook

On markets opening today, -Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," The index has a good support at 11650 and until we do not break that, we are in positive territory. The resistance on the upside is at 12050. If we are unable to move past either levels convincingly, we would be range bound and trading in this zone should be avoided. Stocks that look interesting for an up move include Axis Bank, HDFC Bank and Tata Steel."

10. 16 AM Gold outlook

On gold outlook, Hareesh V, Head of Commodity research, Geojit Financial Services said," Weak US dollar, expectations of more fiscal stimulus measures from the US before election and unsolved US-China tensions continue to support the yellow metal. However, easing safe haven demand amid hopes of global economic recovery would dent major rallies in the commodity."

On its technical outlook (London spot), he added," If the support of $1840 remains undisturbed, expect rallies to continue, but it is required to break $1920 to continue major rallies. An unexpected drop below $1820 would extend further selling pressure."

10.02 AM: Market outlook

Geojit Financial said in its note," On Friday, we had expected reversal plays to take shape, and the expected move towards 11800-860 is likely to mature today. Expect further upside attempts early in the day, but 11915 region is likely to turn down such attempts initially, and a close above 11800 is important for maintaining the ongoing upside momentum."

9. 54 AM: Global markets

Asian markets are trading positive after China says its economy grew 4.9% in Q3. Tech shares lead.

U.S. markets closed higher on Friday after consecutive four days of decline as investors reacted to the strong retail sales data which jumped 1.9% in September.

European markets closed sharply higher on Friday bouncing back from previous day's dip led by Auto companies.

9. 43 AM: Zydus Cadila update

Yash Gupta- Equity Research Associate, Angel Broking said,"  Zydus Cadila received final approval from the USFDA to market Fingolimod Capsules, 0.5 mg (US RLD: Gilenya Capsules). Fingolimod is an immunomodulating drug. It is a sphingosine 1-phosphate receptor modulator indicated for the treatment of relapsing forms of multiple sclerosis (MS). The drug will be manufactured at the groups formulation manufacturing facility at the SEZ, Ahmedabad. The Company has also received the final approval from the USFDA to market Verapamil Hydrochloride Injection USP, 5 mg/2 mL (2.5 mg/mL) and 10 mg/4 mL (2.5 mg/mL), Single-Dose Vials(US RLD: Isoptin Injection). The injections will be manufactured at the companys manufacturing facility at Jarod, near Vadodara (formerly known as Liva Pharmaceuticals). Verapamil injection is used to rapidly or temporarily restore normal heartbeats in people with certain heart rhythm disorders.  This is a very positive development for the company."

9. 34 AM: Philips Carbon Q2 update

Amarjeet Maurya - AVP - Mid Caps, Angel Broking said," For 2QFY21, Philips Carbon Ltd  (PCL)s top-line de-grew by 23% to Rs664cr in the backdrop of the continued global recession in the automobile industry further aggravated by the COVID-19 pandemic. On the operating front, the company reported margin improvement (up by 56bp YoY to 16.1%). The reported net profit de-grew by 25% YoY to Rs58cr due to lower sales. The additional 32,000 tonne capacity at Palej in Gujarat is expected to be commissioned by FY'21. This consists of two lines, both for specialty black and also a 7 MW co-generation power plant."

9. 28 AM: Opening session

Market indices opened on a bullish note on Monday, amid positive Asian equities. SGX Nifty on the Singapore Exchange was rising 60 points higher, indicating positive trend in domestic grounds today. Sensex gained 305 points higher at 40,288 and Nifty was rising 116 points to 11,869.

9. 20 AM: Market outlook

Aamar Deo Singh, Head Advisory, Angel Broking said,"We have witnessed sharp volatility this week and going forward, Nifty is likely to run into a stiff wall of resistance around the 1205-12100 zone whereas crucial support is seen around the 11500-11600 zone."

9. 12 AM: Global markets

Asian stocks are trading higher on Monday buoyed by hopes of a U.S fiscal package before the U.S. presidential elections next month and expectations of a coronavirus vaccine by the end of this year.

In US, stocks rose on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and hopes of US stimulus package.

Treasury Secretary Steven Mnuchin reportedly told that he and President Donald Trump are committed to getting a stimulus deal done and that while it will be hard to get one done before the election, they will keep trying.

9.08 AM: Nifty outlook

Reliance Smart Securites said in its note ," NSE-NIFTY breached its prior weekly rising trend. In the last week, the index lost once out of five trading sessions and reported loss of 1.3%. On Friday, bears took breather after a sharp decline of previous trading session and managed to recover partial weekly damages. Despite recent bounce, its key technical indicators remained in the sell mode. As mentioned earlier, we continue to believe that the index will remain in pressure for next couple of days. On the lower side, the index will find supports at 11,618 level and then at 11,400 mark. On the higher side, its psychological hurdle point-placed at 12,000 mark- will cap the up-move.

As for the day, support is placed at around 11,690 and then at 11,618 levels, while resistance is observed at 11,812 and then at 11,862 levels.

9.00 AM: FII action

Foreign portfolio investors (FPIs) sold shares worth Rs 604.07 crore, while domestic institutional investors (DIIs), were also net sellers to the tune of Rs 808.29 crore in the Indian equity market on 15 October, provisional data showed.

8. 50 AM: Earnings Today

HDFC Life Insurance Company, Britannia Industries, ACC, L&T Technologies, Bank of Maharashtra, Rallis India and CSB Bank are among the top companies that will be reporting their Q2 earnings.

8. 40 AM: Rupee closing

In the forex market, after witnessing a volatile trading session, rupee closed at 73.35, higher by just 1 paisa from its previous close of 73.36.

8. 30 AM: Closing

Market indices ended higher on Friday, amid mixed global equities, backed by heavy buying in banking and financial stocks. Sensex ended 254 points higher at 39,982 and Nifty gained 82 points to 11,762. Today, RBI is also set to release its weekly FX reserves figures.

Sensex rises 254 points, Nifty ends above 11,750; Tata Steel, BPCL, Hindalco top gainers