Closing Bell: Sensex surges 724 points, Nifty ends above 12,100; metals shine
The Indian benchmark equity indices, Sensex and Nifty ended higher Thursday led buy led by gains in broad-based buying in metal, energy and banking stocks amid positive global cues.
The Sensex ended 724.02 points or 1.78 percent higher at 41,340.16 while the Nifty surged 211.80 points or 1.78 percent to close at 12,120.30. Nifty Bank ended over 2 percent higher.
Broader indices participated in the rally with Nifty Smallcap100 and Nifty Midcap100 indices gaining more than 1.7 percent each.
Rally in index heavyweights such as Reliance Industriesand Bajaj Finance.
Among sectors, Nifty Metal and Nifty Media rallied the most over 4 percent each followed by Nifty PSU Bank, Nifty FMCG, Nifty Auto and Nifty IT.
Hindalco Industries, IndusInd Bank, SBI, Tata Steel and BPCL led gains among Nifty50 constituents while Hero MotoCorp and HDFC Life Insurance were the only index losers.
Rupee Update: The Indian rupee ended 36 paise higher at 74.38 per dollar, amid buying seen in the domestic equity market. It opened 40 paise higher at 74.34 per dollar against previous close of 74.74 and remained in the range of 74.25-74.40.
AstraZeneca PLC earnings: Company maintains its full-year guidance. It sees revenue growing in high single-digit to a low double-digit. (Source: Moneycontrol)
HPCL’s share price rally 10% post buyback announcement, strong Q2 earnings
Hindustan Petroleum Corporation Limited’s share price rallied 10 percent on Thursday after the company reported a two-fold jump in its September quarter net profit, and also announced a buyback plan worth of Rs 2,500 crore.
The stock gained as much as 10 percent to Rs 205.35 per share on the NSE. At 1:58 pm, the shares traded 9 percent higher quoting Rs 203.6 apiece.
Rise in refining margins and inventory gains aided the net profit of the company, which came in at Rs 2,477 crore as compared to Rs 1,052 crore a year back.
The company earned $5.11 on every barrel of crude oil turning into fuel in Q2FY21 as compared to $2.83/barrel for the same quarter previous year. Besides, the firm also had a forex gain of Rs 524 crore.
It also announced a buyback of up to 100 million (10 crore) shares of Rs 250 apiece amounting to a total of Rs 2,500 crore. This will be done via open market route, said the company’s exchange filing.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities: Comex gold was trading modestly higher near $1,907/oz after a 0.7 percent decline the previous day. Gold traded higher as the possibility of a contested election in the US increased the safe-haven appeal.
Mixed US economic data, rising virus cases and hopes of additional stimulus measures also lent support. However, ETF outflows and a firm dollar weighed on prices.
Gold may witness choppy trade until US elections results are clear but general bias may be on the upside on hopes of additional measures.
PVR, Inox Leisure’s shares rally after Maharashtra reopens cinema halls with 50% capacity from tomorrow
The share price of PVR and Inox Leisure soared on Thursday after Maharashtra government finally allowed cinema halls and multiplexes to reopen from tomorrow with 50 percent occupancy, outside the containment zones.
PVR’s share price surged as much as 8.6 percent to Rs 1,194.15 apiece on the NSE while Inox Leisure’s shares gained up to 5.7 percent to Rs 274.80.
Furthermore, the order from the state government said that people would not be allowed to have eatables inside the theatres.
This is apart from all the indoor stadiums, swimming pools and yoga institutes – again, outside containment zones – that will be allowed to function Thursday onwards, said the notification. All these facilities will have to strictly observe social distancing and sanitisation norms.
The Union government had allowed multiplexes, theatres and cinema halls to reopen about a month back (October 14) following strict standard operating procedures (SOPs). The Ministry of Home Affairs had then left it to states to take the final call on the matter.
Asian Market Update: Asian shares climbed on Thursday and bonds extended their blistering rally as investors wagered the prospect of U.S. policy gridlock would greatly favour some industries while also restraining government borrowing.
Keshav Lahoti, Associate Equity Analyst, Angel Broking: Maharashtra accounts for ~25% revenue for the multiplex industry, so it is very important that theatres open in Maharashtra so that movies that are expected to get good occupancy plan their release. The Maharashtra Government allowed the reopening of cinema halls, theatres and multiplexes in the state from November 5 with 50% occupancy in areas outside containment zones only. We see this as a positive development for the multiplex industry.
We believe gradually things are improving for the industry. We don’t have big expectations of box office collections around Diwali festival. Although, we believe movies releasing around Christmas should report decent box office collections. We are bullish on PVR and Inox Leisure as long term fundamentals are still intact for the industry and stocks have corrected ~40% due to Covid-19.
Vehicle bookings jump 100% in festive season, says Tata Motors
The vehicle bookings have jumped as much as 100 percent in the festive season, said Shailesh Chandra, the President of the passenger vehicle (PV) business of Tata Motors in conversation with CNBC-TV18.
He also said that the share of pent-up demand has decreased and the shift to personal mobility is driving demand.
“It has been overwhelming to see the response that we have in the festive season this year. In the Navaratri we saw a jump of more than 100 percent as far as bookings are concerned compared to last year’s Navaratri,” he said. Click here to watch the video
Buzzing: SRF stock price hits all-time high after strong Q2 earnings
The share price of SRF surged more than 7 percent to touch a record high level on Thursday after the company reported strong earnings for the quarter ended September 2020.
The stock rallied as much as 7.77 percent to hit an all-time high of Rs 4,785.15 apiece on the BSE. The stock is up 38 percent this year and has risen 92 percent from lows of Rs 2,492.20 level hit in March 2020.
SRF’s revenue in the second quarter of fiscal 2021 grew 21 percent YoY to Rs 2,101 crore. On the operational front, EBITDA went up by 74 percent at Rs 582 crore while EBITDA margins expanded by 840 bps to 27.7 percent.
Net profit rose 4 percent on-year to Rs 315 crore. PAT growth was limited due to higher tax expenses. Read more here
Cost reduction measures have worked for co. Also, lower crude oil prices & favourable exchange has led to better margins, says @HPCL. It expects crude prices to remain benign, around $40/bbl pic.twitter.com/UxiWkYmUsp
— CNBC-TV18 (@CNBCTV18Live) November 5, 2020
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking: Spot Gold prices fell about 0.3 percent on November 4 to close at USD 1903.2 per ounce uncertainties surrounding the US elections result weighed on the yellow metal prices. As the election process commenced, markets anticipate a slight edge towards Democrat Joe Biden winning the US presidency which might open gates for larger US stimulus.
Traders can buy gold at Rs 51,000 levels with the stop loss of Rs 50,700 levels for the target of Rs 51,500. Buy silver at Rs 61,800 levels, with the stop loss of Rs 61,300 levels and for the target of Rs 62,700.
Stock Update: HPCL’s shares rallied 8 percent to Rs 201.70 after the company approved the proposal for buyback of equity shares, for an aggregate amount not exceeding Rs 2 500 crore and at a price not exceeding Rs 250 per equity share, payable in cash, from its shareholders / beneficial owners from the open market.
Results Today: ABB India, Aarti Surfactants, Aditya Birla Capital, Adani Power, Adani Transmission, Astrazeneca Pharma, Bajaj Electricals, Berger Paints India, Birla Corporation, Birlasoft, Dalmia Bharat, Dish TV India, eClerx Services, Emami, Godrej Consumer Products, Gujarat Gas, ICRA, Inox Leisure, Minda Corporation, Spencers Retail, Torrent Power, Trent and Tata Teleservices (Maharashtra) among 127 companies will declare their quarterly earnings on November 5
Banks parked Rs6.83 lakh cr under reverse repo window at 3.35% coupon on Wednesday
This amt forms 6.6% of total credit in the system
Wednesday’s amt was 1.4% lower than Tuesday’s amt
— Abhishek Kothari 🇮🇳 (@kothariabhishek) November 5, 2020
Rupee Opens | Indian rupee opened 40 paise higher on Thursday at 74.34 per dollar against the previous close of 74.74.
Buzzing | SBI stock price jumps 6% as brokerages raise target after Q2 earnings
Shares of State Bank of India (SBI) jumped over 6 percent as the brokerages raised the target price on the stock after the bank reported better than estimated earnings for the quarter ended September 2020.
The country’s largest lender reported 51.9 percent year-on-year growth in standalone profit for the September quarter, led by lower provisions and higher net interest income. The bank’s standalone net profit increased to Rs 4,574 crore during the quarter as compared to Rs 3,011.7 crore in the year-ago period. Net profit bet CNBC-TV18 analysts’ poll estimates of Rs 3,682.3 crore. Net interest income (NII) during Q2FY21 increased by 14.6 percent to Rs 28,182 crore from Rs 24,600 crore, YoY. Domestic Net Interest Margin (NIM) improved to 3.34 percent in Q2FY21, registering an increase of 12 bps YoY.
Brokerage CLSA said that State Bank of India’s 2QFY21 results were reassuring with NII/core PPOP growth of 15% YoY and strong commentary on asset quality. Collections at 97% are strongest for SBI among top banks, driving guidance of just Rs 600 billion (2.5% of loans) of slippages and restructuring expected in FY21.
The brokerage has increased FY2021/22/23 estimates 64/17/12% and now expects SBI to deliver 9.7/11.9% ROEs in FY2022/23. Valuations at just 0.35x one-year forward book is cheap, hence it expects a big rerating.
CLSA reiterates a Buy rating and raised the target price to Rs 330 from Rs 310.
Technical View | We have opened with a bang which is way above the resistance levels of 11,950. As mentioned yesterday, any dip can be used to accumulate long positions on the index. The markets should now be headed to 12,300-12,400 levels, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
SC Loan Moratorium Case Hearing LIVE Updates: Justice Ashok Bhushan bench to resume hearing today
The Supreme Court will resume hearing in the interest waiver case today. The court was set to resume it on Tuesday but adjourned it to today due to the unavailability of Solicitor General Tushar Mehta. The apex court will be hearing a batch of pleas seeking a waiver of interest charged by banks on EMIs during the RBI’s six-month loan moratorium period. Justice Ashok Bhushan bench in mid-October had asked the government to implement the decision to waive compound interest payment for small borrowers during the period by November 2. The Reserve Bank of India (RBI) has notified the government’s scheme of interest waiver during the moratorium period and has asked all lending institutions to take necessary action within the stipulated timeline. Read live updates here.
India’s services activity grows in October for first time in eight months: Activity in India’s dominant services industry, expanded for the first time in eight months in October as demand surged, but pandemic-hit firms continued to cut jobs, a private survey showed on Wednesday.
The Nikkei/IHS Markit Services Purchasing Managers’ Index climbed to 54.1 in October from September’s 49.8. It was the highest reading since February and comfortably above the 50-mark separating growth from contraction. (Source: Moneycontrol)
Opening Bell: The Indian equity benchmark indices opened higher on Thursday led by buying across the board amid positive global cues. Broader markets, Nifty Smallcap100 and Nifty Midcap100, were up 1.17 percent and 0.73 percent, respectively. All the sectoral indices were trading in the green led by Nifty PSU Bank, Nifty IT, Nifty Metal and Nifty Financial Services.
SBI, HCL Technologies, Adni Ports & SEZ, Tata Steel and IndusInd Bank were the Nifty50 top gainers, while Hero MotoCorp and Titan Company were the only ones to trade in the red.
Diwali 2020: Muhurat trading to start at 6:15 pm on November 14
The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will conduct a one-hour Diwali muhurat trading on Saturday (November 14). All the trades executed during this session would result in settlement obligations.
Both BSE and NSE will permit trading for an hour, starting 6:15 pm. A block deal session will precede this main session and the pre-open session between 5:45 pm to 6:00 pm said the exchanges. Traders are advised to login between 5:15 pm to 5:45 pm.
The session marks the beginning of a new Samvat or Hindu calendar year. It is believed that muhurat trading brings prosperity and wealth throughout the year. Click here to read more
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