Closing bell: Sensex surges 718 points, Nifty settles at 10,250 led by banking, pharma stocks
12 min read.Updated: 29 Oct 2018, 10:03 PM ISTNirav Vyas
The BSE Sensex closed 718.09 points up at 34,067.40, while the Nifty 50 ended 221.30 points higher at 10,251.30. Here are the latest updates from the markets
Mumbai: The BSE Sensex and NSE’s Nifty 50 rose over 2% on Monday led by gains in healthcare and banking stocks supported by positive September-quarter earnings in the sectors. The Sensex closed 718 points up and the Nifty 50 settles at 10,251. ICICI Bank shares rose 10% after Q2 results, while Axis Bank shares advanced 5% on its plan to sell its holdings in NSDL. The Nifty PSU Bank Index surged 8%, with SBI rising 8%. Further in post-earnings impact, Dr Reddy’s Labs shares advanced over 5%.Moreover, signs of recovery in global markets also helped boost sentiment. European shares climbed thanks to encouraging earnings reports, ignoring mixed trends in the Asian stocks. However, concern over China’s slowing economy dented U.S. stock futures. Brazil-exposed stocks in Europe gained as investors cheered the outcome of the Brazilian presidential election. Oil prices dipped amid cautious sentiment following losses in financial markets last week and a stronger dollar. Here are the latest updates from the markets:
29 Oct 2018, 03:34:00 PM IST
Closing bell: Sensex, Nifty rise over 2%
The BSE Sensex closed 718.09 points, or 2.15%, up at 34,067.40, while the Nifty 50 ended 221.30 points, or 2.21%, higher at 10,251.30. Intraday, the Sensex surged 805.29 points to 34,154.60 and the Nifty 50 gained 245.03 points to 10,275.30.The BSE MidCap and SmallCap indices jumped 2.80% and 2.06%, respectively. All the sectoral indices on BSE ended higher with healthcare rising most at 4.21%. Energy, industrials, bankex, capital goods and realty rose over 3%.ICICI Bank, SBI, Adani Ports, Indiabulls Housing Finance and Dr Reddy’s Labs were among the top gainers on the key indices, whereas IndusInd Bank, HDFC Bank, Kotak Bank and Bharti Airtel were among the major losers.
29 Oct 2018, 03:20:00 PM IST
Reliance Industries faces oil shock at home
Reliance took more interest in the country's retail fuel sector and has opened more than 1,300 service stationshttps://t.co/JQjbFuzcxN
Tata Power, Monsanto India shares gain after earnings
Monsanto India Ltd shares traded 3.66% up at Rs 2587. The company reported a profit of Rs 24.09 crore in the quarter ended September 30, compared to a profit of Rs 6.39 crore a year ago. Revenue from operations stood at Rs 128 crore in the September quarter from Rs 96 crore in the same quarter a year ago.Tata Power Co. Ltd reported a consolidated profit of Rs 393 crore in the quarter ended September 30 versus a profit of Rs 213 cror last year. Consolidated revenue from operations stood at Rs 7,333 crore in the September quarter, compared to Rs 6,874 crore in the same period last year. Shares rose over 13%.
29 Oct 2018, 02:50:00 PM IST
Airtel shares down over 1%
Shares of Bharti Airtel fell 1.63% to Rs 293.45. The company is delaying a planned initial public offering of its Africa unit due to the turmoil in emerging-market stocks, reported Bloomberg, citing people with knowledge of the matter said. The company, which was originally aiming to list the unit in London by March, has pushed back the share sale by about half a year, according to the people. It plans to seek an enterprise value of about $8 billion for the Africa business, the people said, asking not to be identified because the information is private. Read more
29 Oct 2018, 02:33:00 PM IST
Adani Power, Tata Power shares surge after SC order
Shares of Adani Power and Tata Power rose 18.17% and 11.89%, respectively. The Supreme Court on Monday asked the Central Electricity Regulatory Commission (CERC) to give its findings on the proposed amendments in the power purchase agreements (PPAs) for coal-based plants of Tata, Adani and Essar within eight weeks. These power projects are based out of Gujarat but power distribution companies of various states, including Maharashtra, Rajasthan, Punjab and Haryana, have signed PPAs with them. Read more
29 Oct 2018, 02:13:00 PM IST
Century Textile, Modison Metals shares gain after earnings
Century Textile and Industries Ltd shares rose 4.67% to Rs 808.30 per share. The company said its September-quarter net profit rose to Rs 157 crore versus Rs 52.78 crore last year. Sales rose to Rs 1,950 crore in the quarter ended September 30 compared to Rs 1,792 crore in the same period last year.Modison Metals Ltd shares gained 3.75% to Rs 47 per share. The company reported a profit of Rs 4.74 crore in the quarter ended September 30, up from Rs 3.71 crore in the year ago quarter. Revenue from operations rose to Rs 5.59 crore in the September quarter from Rs 4.82 crore in the same quarter last year. Moreover, the company said Rakesh Singh has resigned as CEO.
29 Oct 2018, 01:45:00 PM IST
Nifty sectoral indices
29 Oct 2018, 01:39:00 PM IST
Market update: Sensex, Nifty rise over 1.5%
The BSE Sensex rose 500.61 points, or 1.50%, to 33,849.92, while the Nifty 50 advanced 153.70 points, or 1.53%, to 10,183.70. The Nifty Bank index rose 1.79%. The BSE MidCap and SmallCap were up 2.35% and 1.51%, respectively.
29 Oct 2018, 01:15:00 PM IST
Property developers next in firing line from NBFC liquidity crisis
India’s banking liquidity crunch is extending to the nation’s property developers, threatening to derail a nascent recovery in the property sector. Home builders in India have increasingly been turning to non-bank lenders or NBFCs for funding as traditional financiers struggle under bad loans. But following the government’s seizure of troubled shadow bank Infrastructure Leasing & Financial Services Ltd (IL&FS) earlier this month, that avenue may be choked off too. Read more
29 Oct 2018, 12:50:00 PM IST
Prakash Industries shares rise 5% after results
Prakash Industries Ltd shares rose 5.13% to Rs 106.50 after the company said its profit after tax rose to Rs 131 crore in the quarter ended September 30 from Rs 71.06 crore a year ago. Net revenue from operations came in at Rs 950 crore in the September quarter versus Rs 648 crore in the same period last year.
29 Oct 2018, 12:20:00 PM IST
Vijaya Bank shares jump 9% after results
Vijaya Bank shares surged as much as 9.35% to Rs 44.40 per share. The company reported a net profit of Rs 140 crore in the quarter ended September 30, compared to a profit of Rs 185 crore in the same quarter last year. Net interest income rose to Rs 3,634 crore in the September quarter from Rs 3,054 crore in the year-ago quarter. Provisions and contingencies stood at Rs 589 crore in the quarter versus Rs 458 crore last year. Provisions for NPA rose to Rs 488 crore from Rs 450 crore a year ago. Gross NPA came it at 5.86% versus 6.19% in the previous quarter. Net NPA was at 3.81% versus 4.10% in the previous quarter.
29 Oct 2018, 11:53:00 AM IST
India considers allowing some China imports to be settled in yuan
Axis Bank shares up over 7% on plan to sell NSDL holdings
Axis Bank shares rose as much as 7.2% to Rs 576.10 per share on BSE after the company on Friday said that it has signed an agreement to sell 1,979 ,900 equity shares it held in the National Securities Depository Ltd to HDFC Bank at a price of Rs 825 per share for a total amount of Rs 163.34 crore.
29 Oct 2018, 11:23:00 AM IST
Dr Reddy’s shares rise 5% on Q2 numbers
Shares of Dr. Reddy’s Laboratories Ltd jumped as much as 6.43% to Rs 2,558.55 per share in their biggest daily percent gain since May 22. The company on Friday posted a 69.7% jump in second-quarter profit, helped by new product launches. Net profit rose to Rs 518 crore in the quarter ended 30 September, from Rs 305 crore a year earlier.Citi raised the target price to Rs 2,680 from Rs 2,270 with “neutral” rating, saying stability in U.S. pricing and cost control initiatives should provide a floor to base earnings.Nomura raised the TP to Rs 2704, maintaining “buy” rating. “Despite a decline in US sales (down USD30mn q-q), the company delivered a steady quarter, with a pick-up in sales in ex US markets and containment of costs. The results provide comfort on base earnings,” It said.Motilal Oswal revised the TP to Rs 2,300 from Rs 2,275 per share previously, while maintaining “Neutral” rating. “Delay in the resolution of regulatory issues and subsequent launches remains the key overhang,” said the brokerage.Prabhudas Lilladher increased the TP to Rs 2,170 and maintained “Reduce” rating. “With uncertain legal outcome of gSuboxone, channel consolidation in US and frequent regulatory interventions in India, DRRD has unfavourable risk-return ratio,” said the brokerage. “We expect high risk metrics continue to be drag over valuation in medium term.”Dolat Capital Market said, “We expect the major traction coming in FY20E. Suboxone hearing could still be a major surprise in the current fiscal, if the hearing is in the favour. With any delay in the product launch, there is a chance to miss on the benefits due to competition. On the other hand, biosimilar plans are expected to be on track.” 18 of 39 brokerages covering the stock rate it “buy” or higher, 11 “hold” and 10 “sell” or lower; their median TP is Rs 2,442, according to Refinitiv Eikon data.
29 Oct 2018, 10:35:00 AM IST
ICICI Bank shares surge 8%; Brokerages positive on the stock
ICICI Bank shares surged as much as 8.58% to Rs 342.10 per share on BSE as many brokerages increased the stock’s target price after the bank’s Q2 earnings showed improvement in asset quality. Read moreJefferies said ICICI remains one of its preferred stocks as it expects continued core pre-provision operating profit (PPoP) growth over next 3-4 quarters as net interest margin starts expanding, loan growth picks up and asset quality normalises.Nomura raised TP to Rs 415 per share from Rs 375 and maintained “buy” rating, saying PPoP improvement could surprise positively. “We believe ROE (return on equity) recovery will be faster than earlier expected,” Nomura added.Emkay Global in a note to its investors said, “With a declining trend in fresh slippages after several quarters, we believe that the peak of NPA recognition cycle is over now, and the incremental additions to NPAs are expected to stay significantly lower than the previous years.” The brokerage has maintained its “buy” rating and increased its target price to Rs 404 a share.Antique Stock Broking Ltd said, “We believe ICICI Bank is in a strong position to leverage to its strong retail franchise and, with peak of stress recognition behind and credit cost normalization, RoA and RoE are likely to improve to 1.3% and 14% respectively by FY20.” The brokerage has maintained its buy rating and increased its target price to Rs 400, up 27% from current market price.Kotak Institutional Equities said, ““We are now seeing the commentary shifting gradually towards loan growth, NIM and importantly, decline in credit costs. As these trends are firmly visible, we believe that the RoE expansion has started to unfold, which would give greater confidence for valuation expansion.” The brokerage firm has maintained buy rating and increased its target price to Rs 410 a share from Rs 400.Prabhudas Lilladher Pvt. Ltd said, “We believe, recoveries/upgrades to slowly improve asset quality with quality coverage ratio, while should face limited risk on large slippage. Other metrics like CASA mix, fee growth and controlled opex remain positive but quality of loan book on granularity is yet to take place.” It has upgrade the stock to “Buy” with a revised TP of Rs 365.Of the analysts covering the stock, 49 have a “buy” rating on ICICI Bank shares, one has a “hold” and one “sell” rating, shows Bloomberg data.
29 Oct 2018, 10:18:00 AM IST
Market update: Sensex up 200 points, Nifty near 10,100
The BSE Sensex rose 191.94 points, or 0.58%, to 33,541.25, while the Nifty 50 added 58.70 points, or 0.59%, to 10,088.70. The BSE MidCap and SmallCap indices advanced 0.94% and 1.05%, respectively.All the sectoral indices on BSE gained with healthcare rising most at 2.41%. Bankex, capital goods, consumer durables, industrials and energy rose over 1%.ICICI Bank, Axis Bank, Dr. Reddy’s Labs, Sun Pharma, SBI and Tata Motors were among the top gainers on the key indices, whereas Kotak Bank, HDFC Bank, IndusInd Bank and Hindustan Unilever were among the major losers.
29 Oct 2018, 10:12:00 AM IST
Cox and Kings shares hit 5% upper circuit on plans to sell edu biz
Shares of Cox and Kings Ltd hit an upper circuit of 5% at Rs 192.25 per share after the company said it has entered into an agreement to sell its education business to Midlothian Capital Partners for all-cash enterprise value of Rs 4,387 crore.
29 Oct 2018, 09:45:00 AM IST
Granules India shares up 3% as USFDA completes inspection
Shares of Granules India rose as much as 3.20% to Rs 95 per share after the company disclosed that the USFDA has completed an inspection at the company’s US unit, Granules Pharmaceuticals Inc., with two Form 483 observations.
29 Oct 2018, 09:27:00 AM IST
Divi’s Labs shares jump 9% after quarterly earnings
Shares of Divi’s Laboratories Ltd surged as much as 9.25% to Rs 1369.90 after the company reported a 92% jump in its net profit for the September quarter to Rs 398 crore, while revenue surged 44% to Rs 1285 crore.
29 Oct 2018, 09:22:00 AM IST
ICICI Bank shares rise 5% after Q2 results
ICICI Bank shares rose as much as 5.18% to Rs 331.40 after the bank reported a fall in provisions, slippages and improvement in asset quality. For the quarter, slippages coming down to Rs 3120 crore — the lowest in the past eight quarters. The bank posted a net profit of ₹908.88 crore for the three months ended 30 September compared to ₹2,058.19 crore in the year-ago period. Profit was marginally lower than the ₹949.30 crore estimated by a Bloomberg poll of 20 analysts.Read:Q2 results done, what ICICI Bank investors should focus on
29 Oct 2018, 09:14:00 AM IST
Bond prices hit 11-week high; Rupee rises against dollar
Yield on the 10-year government bonds fell five basis points on Monday to hit a near 11-week low after the Reserve Bank of India said it will buyback bonds worth Rs 40,000 crore in November through open market operations (OMO). For October, RBI bought government bonds worth around Rs 36,000 crore via OMOs. At 9.15am, the 10-year gilt yield stood at 7.829% from its Friday’s close of 7.876%.Meanwhile, the rupee was trading at 73.35 a dollar, up 0.17% from its Friday’s close of 73.47. The currency opened at 73.30 a dollar. Read more
29 Oct 2018, 08:55:00 AM IST
Rupee a bigger worry for bond market than fiscal deficit miss
Oil: Oil prices were stable, supported by a bounce in Asian stocks, but analysts said sentiment remained cautious after a plunge in financial markets last week triggered worries that global growth may be slowing. Front-month Brent crude oil futures were at $77.63 a barrel, 1 cent above their last close. U.S. WTI crude futures were at $67.65 a barrel, up 6 cents from their last settlement.Metals: London metals rose as the dollar remained near one-year lows, shrugging off a cloudier outlook for demand growth after slowing industrial profits were the most recent signal of a weakening China economy. LME copper rose half a percent to $6,188.50 a tonne. Premiums for aluminium and zinc have come off $5 and $10, respectively, reflecting easier availability of supply. LME nickel edged up 0.2% to $11,925 a tonne. Reuters
29 Oct 2018, 08:30:00 AM IST
Asian stock markets trade mixed; US Futures steady
Asian stock markets traded mixed with shares in Sydney and Tokyo gaining, Hong Kong and Seoul flat, and Shanghai down. US stock futures steadied, indicating some respite at the start of the week from the recent global sell-off. Wider sentiment in markets has been hit by a range of negative factors from an intensifying China-U.S. trade conflict to worries about U.S. corporate earnings to Italian budget woes as well as Federal Reserve rate increases.Japan’s Topix index added 0.7%Australia’s S&P/ASX 200 Index rose 1%South Korea’s Kospi added 0.5%The Shanghai Composite slid 0.2%Hong Kong’s Hang Seng Index advanced 0.9%S&P 500 futures were flat(With inputs from Reuters and Bloomberg)