Wednesday, 1 November 2017

Market Live: Nifty extends rally; Sensex jumps 300 pts as WB ups India ranking

SBI, Bharti Airtel, Axis Bank, Yes Bank, Vedanta, Tata Steel and JSW Steel were early gainers.

intraday free trials tips10:56 am Buzzing: Share price of Texmaco Rail and Engineering touched 52-week high of Rs 119.20, rising 3.5 percent in morning as it has bagged contact from Ministry of Railway, Bangladesh Government.

The company has been awarded a contract valuing USD 67.7 million by Ministry of Railway, Bangladesh Government.

The contract includes construction of 45 KM dual gauge railway line, including railway stations buildings, level crossing gates and a custom house building through north eastern border area in Maulavibazar district of Bangladesh adjoining Karimganj district of Assam state in India.

10:46 am Manufacturing PMI: Indian factory activity barely expanded in October as new orders fell, a survey showed today, as price rises following the introduction of a goods and services tax dragged on the economy and underscored dim growth prospects over coming months.

The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 50.3 last month from September's 51.2, marking its third month above the 50-point threshold that separates growth from contraction. Intraday free trials tips

That was below all projections in a Reuters poll which had predicted a modest uptick to 51.5 and comes after another recent Reuters survey forecast India's economy will grow at its slowest pace in four years this fiscal year.

10:36 am Escorts in focus: Farm equipment manufacturer Escorts Agri Machinery today reported a 13.8 percent increase in its tractor sales at 10,205 units for October.

The company had sold 8,970 tractors in the same month a year ago.

Domestic tractor sales stood at 10,001 units as against 8,859 in October last year, up 12.9 per cent, Escorts Ltd said in a BSE filing.

Exports nearly doubled to 204 units from 111 in October 2016.

10:26 pm Auto sales: India's largest car maker Maruti Suzuki's October sales missed analyst expectations on Wednesday, rising 9.5 percent year-on-year. It was driven by compact cars (Dzire, Baleno etc) and utility vehicles (Vitara Brezza, Ertiga etc).

The company sold 1.46 lakh units in October 2017 against 1.34 lakh units in same month last year.

"Domestic sales during the month increased 9.9 percent to 1.36 lakh units and exports rose 4.2 percent to 10,446 units," Maruti said in its filing.

According to average of estimates of analysts polled by CNBC-TV18, total sales were estimated at 1.53 lakh units for the month.

10:15 am Merger: The board of directors of Reliance Communications yesterday approved the issuance of shares to the tune of 10 percent of the equity shareholding of Reliance Communications, to SSTL, as part of the agreement between the two companies.

Under the terms of the agreement between RCOM and Sistema, RCOM will acquire the telecommunications business of SSTL including its licenses. In addition, RCOM will acquire 30 MHz of the most valuable and superior 800 / 850 MHz band spectrum, ideally suited for 4G LTE services and other evolving technologies, to complement its own unique nationwide footprint.

This will result in extension of the validity of RCOM’s spectrum portfolio in the 800 / 850 MHz band in eight important Circles (Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP-West and West Bengal) by a period of 12 years—from 2021 to 2033.

10:05 am Market Update: Equity benchmarks extended gains in morning, with the Sensex rising more than 300 points after World Bank raised India ranking on ease of doing business. Investors also looked for more corporate earnings, auto sales data, and the outcome of FOMC meet due tonight.

The 30-share BSE Sensex rallied 333.62 points or 1 percent to 33,546.75 and the 50-share NSE Nifty rose 92.90 points or 0.90 percent to 10,428.20.

About three shares advanced for every share falling on the BSE. The BSE Midcap index was up 0.7 percent and Smallcap rallied 0.9 percent.

9:58 am Earnings Reaction: Shares of FMCG major Dabur India jumped over 6 percent in morning and hit a new 52-week high after the company reported a net profit of Rs 362.7 crore on Tuesday against investors’ expectation of Rs 369 crore.

Its revenues grew to Rs 1,959 crore against Rs 2,061 crore assumption by analysts.

At an operating level, the earnings before interest, taxes, depreciation and amortisation (EBITDA) was reported at Rs 420 crore, while the operating margin came in at 21.4 percent. The company’s domestic volume growth beat expectations at 7.2 percent.

9:52 am Buzzing: Shares of Alembic Pharmaceuticals added nearly 2 percent in morning as it has completed the acquisition of US-based company Orit Laboratories.

The company through its 100 percent owned subsidiary, Alembic Pharmaceuticals Inc., has completed acquisition of West Caldwell, New Jersey USA based generic drug developer Orit Laboratories LLC along with real estate, owned by Okner Realty LLC.

Orit Laboratories has established in August 2005 having 7 approved ANDAs and 4 ANDAs pending approval.

9:42 am FII View: The Nifty50, which has already rallied over 26 percent to touch a fresh record high, is on its way to surpassing Mount 11,000 in the year 2018, which translates into an upside of over 11 percent.

Goldman Sachs in a note last week remained overweight on India and raised the target for Nifty from 10,900 in September 2018 to 11,600 by December 2018, which translates into an upside of 11.6 percent from current levels.

“We reaffirmed our strategic overweight stance on India post the bank recap news and raised our Nifty target to 11,600 (by end-’18). Within sectors, we raised PSU banks to overweight and highlighted 2 themes: 1) quality PSU/quasi-PSU banks; 2) infra-beneficiaries,” it said.

The global investment bank favours PSU banks and infra beneficiaries. Goldman has a neutral rating on SBI and Bank of Baroda. It maintained a buy rating on ICICI Bank.

9:32 am Stake Sale: Telecom major Bharti Airtel said a few "reputed" global investors have approached it for buying a controlling stake in its mobile tower arm Bharti Infratel.

The telecom major, which holds 58 percent in Bharti Infratel through its another subsidiary, said that a committee of directors (COD) of Bharti Airtel is considering the proposal received from the global firms.

"Airtel has been approached by a few reputed global investors to acquire a significant stake in Bharti Infratel which, if accepted, could result in such investors acquiring control of Bharti Infratel," the telco said in a statement.

"The COD has recommended that such proposals be duly considered," the statement said.

Bharti Airtel will hold 50.33 percent stake while its wholly owned subsidiary Nettle Infrastructure Investments 11.32 percent in Bharti Infratel.

9:25 am Earnings: IIFL Holdings reported a 25 percent rise in consolidated net profit at 229.1 crore for quarter-ended September 30, this fiscal.

The company's net profit stood at Rs 183.1 crore, during July-September quarter of 2016-17.

IIFL's income surged nearly 42 percent to Rs 944.4 crore in the second quarter of 2017-18 from Rs 666.4 crore in the same period year-ago.

The company's total assets under management, distribution and advice saw 47 percent year-on-year growth to reach Rs 1.33 lakh crore in the September quarter, this fiscal.

The stock rallied nearly 7 percent in early trade.

9:20 am FM on World Bank report: After the World Bank ranking was made public, Finance Minister Arun Jaitley said India is the only major country named for pursuing structural reforms.

"In 2014, we were 142nd and then (in) last two years, we improved to 131st and 130th. These are not generalised rankings. It happened in specific areas and they take tough parameters for that ranking," he said.

The "highest jump" in ranking was possible as significant improvements in all the 10 judging parameters were made in last 3-4 years "so that it becomes easy to do business in India," he said.

The World Bank, he said, has named 10 countries where structural reforms have been taken. "India is one of them."

The World Bank says India still lags in areas such as starting a business, enforcing contracts and dealing with construction permits.

9:15 am Market Check: Equity benchmarks as well as Nifty Bank started off Wednesday's trade with record highs, backed by banks, metals and telecom stocks. The rally was after the World Bank said India's rank on 'ease of doing business' scale has risen from 130th to 100th this year, helped by a slew of reforms in taxation, licensing, investor protection and bankruptcy resolution.

The 30-share BSE Sensex was up 209.28 points or 0.63 percent at 33,422.41 and the 50-share NSE Nifty rose 61.20 points or 0.59 percent to 10,396.50.

About 950 shares advanced against 202 declining shares on the BSE.

SBI, Bharti Airtel, Axis Bank, Yes Bank, Vedanta, Tata Steel and JSW Steel were early gainers.

Dredging Corporation, Syndicate Bank, Dabur India, VST Industries, Dwarikesh Sugar, Dalmia Bharat Sugar, Escorts, Sanofi India, Triveni Engineering, PNB, UCO Bank, Andhra Bank, Union Bank, IIFL Holdings, KPIT Technologies and InterGlobe Aviation rallied 11-10 percent. Container Corporation, Blue Star fell 2 percent each.

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