Closing bell: Sensex, Nifty rise over 2% ahead of inflation data led by auto stocks
13 min read.Updated: 12 Oct 2018, 04:16 PM ISTNirav Vyas
The BSE Sensex closed 732.43 points, or 2.15%, up at 34,733.58, while the Nifty 50 ended 237.85 points, or 2.32%, higher at 10,472.50. Here are the highlights from the markets
Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 rebounded over 2% on Friday in line with global equity markets ahead of key retail inflation data. The rupee also gained against the US dollar following gains in the equity markets and as oil prices fell. The Sensex and the Nifty 50 rose 2.15% and 2.32%, respectively, helped by gains in shares of auto, energy and metal stocks. Traders await retail inflation and IIP data due to be released today after 5.30pm.“Markets are extremely volatile these days but indications are in the favour of further rebound in Nifty. We advise focusing on earnings, global markets and currency movement for further cues. Traders should prefer hedged trades in such scenario and maintain extra caution in stock selection,” said Jayant Manglik, President, Religare Broking Ltd.In global markets, European and Asian markets recovered from a brutal selloff that still left them set for their worst week since February, reported Reuters. After a partial recovery in Asian shares overnight, European stocks opened higher, with the pan-European STOXX 600 up 0.9 percent. Japan’s Nikkei average rose 0.5 percent. Shanghai shares bounced 0.8 percent. Oil rose to $81 a barrel on Friday, rebounding after two days of declines, Brent is still on course for a 3.7 percent decline this week.
The BSE Sensex closed 732.43 points, or 2.15%, up at 34,733.58, while the Nifty 50 ended 237.85 points, or 2.32%, higher at 10,472.50. The BSE MidCap and SmallCap indices rose 2.42% and 2.60%, respectively.All the sectoral indices on BSE, barring IT and teck, gained with auto rising most at 4.01%. Metal, realty, basic materials, oil and gas, consumer discretionary goods and energy rose over 3%. IT and teck declined as shares of Tata Consultancy Services fell 3% after the company reported its September-quarter results.Auto stocks Maruti Suzuki, M&M and Eicher Motors were among the top gainers and rose over 5%. HPCL, Coal India, ITC and Reliance were other top gainers.Meanwhile, FIIs sold equities worth Rs 2,869.41 crore on net basis, while DIIs purchased shares to the tune of Rs 1,888.18 crore on Thursday, provisional data showed.
12 Oct 2018, 03:20:00 PM IST
Gold prices rise Rs 140 on festive buying
Gold prices continued their upward move for the third straight day on Friday and advanced Rs 140 as local jewellers increased buying to meet festive demand. Global gold prices, however, fell as equity markets firmed, but the metal traded near a more than 10-week high hit in the previous session. In Delhi, gold rates of 99.9% and 99.5% purity rose further by Rs 140 each to Rs 32,120 and Rs 31,970 per 10 grams, respectively. The precious metal had gained Rs 330 in the last two days. Sovereign remained unchanged at the previous level of Rs 24,600 per piece of eight grams. Read more
12 Oct 2018, 03:07:00 PM IST
Karnataka Bank shares struggle after results
Karnataka Bank Ltd reported a net profit of Rs 112 crore in the quarter ended September 30, compared to a profit of Rs 93.38 crore a year ago. Net interest income stood at Rs 1,453 crore in the quarter versus Rs 1,318 crore in the last quarter. September quarter’s provisions and contingencies were Rs 193 crore as against Rs 226 crore the the year ago period. Gross NPAs stood at 4.66% versus 4.72% in the previous quarter. Net NPA came in at 3% versus 2.92% last year. Karnataka Bank shares fell as much as 1.98% to Rs 96.40 per share.
12 Oct 2018, 02:55:00 PM IST
Options for NRI deposits open, timing not decided yet: Report
The option of raising dollar deposits from non-resident Indians through a special scheme is open but the “appropriate’ time is not yet decided, said economic affairs secretary at the finance ministry Subhash Chandra Garg on CNBC-TV18 on Friday. Garg said the key triggers to decide on the timing of raising foreign currency deposits from Indians living abroad will be the “movement” in the exchange rate and the “extent of forex reserves”. Reuters
12 Oct 2018, 02:47:00 PM IST
SOM Distilleries shares jump 10%
SOM Distilleries and Breweries Ltd shares jumped 10.5% to Rs 176.30 after the company said that it units Woodpecker Distilleries and Breweries Pvt Ltd has commenced production of IMFL from the Hassan facility.
12 Oct 2018, 02:30:00 PM IST
Oil prices pare gains, rebound to $81
Oil rose to $81 a barrel on Friday, rebounding after two days of declines, though prices pared gains after another closely watched forecaster deemed supply adequate and the outlook for demand weakening. Crude was still heading for its first weekly drop in five weeks, pressured by a big rise in U.S. inventories and fading concerns that looming U.S. sanctions on Iran will cut supplies significantly.International benchmark Brent crude rose 76 cents to $81.02 a barrel by 0830 GMT, having dropped by 3.4 percent on Thursday. U.S. crude added 71 cents to $71.68. Brent is still on course for a 3.7 percent decline this week, the biggest weekly fall in about four months. Reuters
12 Oct 2018, 02:00:00 PM IST
Global stocks stage recovery as Treasury yields climb
Global stocks staged a robust recovery on Friday as strong trade data from China buoyed markets at the end of a tumultuous week. The dollar steadied as Treasury yields ticked higher. Read moreThe Stoxx Europe 600 Index jumped 0.8% to 362.62, the biggest climb in 11 weeks.Futures on the S&P 500 Index surged 1.3%, the largest jump in six months.The MSCI All-Country World Index jumped 0.5%, the first advance in more than a week and the biggest climb in more than three weeks.The U.K.’s FTSE 100 Index gained 0.3%.Germany’s DAX Index surged 1.2%, the biggest jump in 11 weeks.The MSCI Emerging Market Index surged 2.1%, the first advance in more than a week and the largest jump in 15 weeks. Bloomberg
12 Oct 2018, 01:35:00 PM IST
M&M unit enters JV with Sumitomo Corp, shares up 6%
Mahindra and Mahindra Ltd said that unit Mahindra Agri Solutions Ltd entered into a joint venture agreement with Sumitomo Corporation Group of Japan. Mahindra and Sumitomo will hold 60% and 40% equity, respectively, in the new company named Mahindra Summit Agriscience Ltd. The partnership will offer a pipeline of specialty, new generation products with unique and latest molecules to effectively manage pest and insect related challenges faced by farmers. Mahindra shares traded 5.83% up at Rs 772.80.
12 Oct 2018, 01:13:00 PM IST
Sensex, Nifty hold gains; Auto stocks top gainers
BSE Sensex surged 703.48 points, or 2.07%, to 34,704.63, while the Nifty 50 gained 199.40 points, or 1.95%, to 10,434.05. Mahindra, Maruti Suzuki and Bajaj Auto were leading gains.
12 Oct 2018, 12:47:00 PM IST
Cadila Healthcare shares up on USFDA approval
Cadila Healthcare Ltd said that Zydus Cadila received tentative approval from the USFDA for Linagliptin and Metformin hydrochloride tablets. Cadila Healthcare shares traded 0.89% up at Rs 378.80.
12 Oct 2018, 12:33:00 PM IST
ITI shares rise 3% on Rs 334 crore order
ITI Ltd said that it has received a letter of intent from RajCOMP Info Services Ltd to execute the RajNet project, under which the company is expected to establish 40,000 outdoor Wi-Fi access points in the state of Rajasthan. The project has an order value of approximately Rs 334 crore, the company said. ITI shares rose 2.81% to Rs 84.05.
12 Oct 2018, 12:05:00 PM IST
United Breweries shares down after report of CCI raid
Shares of United Breweries Ltd traded 1% down after falling as much as 3% to Rs 1,152.55 intraday. The Competition Commission of India raided offices of three top beer companies, including UB, on Thursday as part of an investigation of price-fixing allegations, reported Reuters, citing sources. Search and seizure operations were conducted at offices of United Breweries, Denmark’s Carlsberg A/S and Anheuser-Busch InBev NV in at least two Indian cities, the report added.
12 Oct 2018, 11:42:00 AM IST
JetAirways, SpiceJet, IndiGo stocks trade higher
Shares of airlines traded higher for the second day after The government on Wednesday cut excise duty on jet fuel from 14% to 11% to help keep airfares under check and to give relief to airlines troubled by high fuel prices. Jet Airways shares rose 6.20% to Rs 203.10, SpiceJet was up 4.91% at Rs 73.70 and IndiGo traded 5.19% up at Rs 802.70.
BSE Sensex surged 701.77 points, or 2.06%, to 34,702.92, while the Nifty 50 gained 213.70 points, or 2.09%, to 10,448.35. The BSE MidCap and SmallCap indices were up 2.37% and 2.38%, respectively. Among the sectoral indices on BSE, realty, auto, energy, and oil and gas jumped over 3%. IT and teck declined over 1%.
12 Oct 2018, 11:05:00 AM IST
HUL shares trade higher ahead of Q2 earnings
Shares of Hindustan Unilever Ltd traded 1.41% up at Rs 1,550.10 per share on BSE ahead of the company’s September-quarter earnings announcement today. In Intraday, the stock rose as much as 2.45% to Rs 1,566.Motilal Oswal says, “We expect HUL’s revenue to grow 15% YoY, with underlying domestic volume growth of 10% in 2QFY19. Operating margin to expand by 150bp YoY to 21.7% in 2QFY19, leading to EBITDA growth of 23.5% YoY.” The brokerage maintained “buy”.
12 Oct 2018, 10:58:00 AM IST
Government orders probe into affairs of ILFS, units
IL&FS Engineering and Construction Co. Ltd disclosed that parent Infrastructure Leasing and Financial Services Ltd informed the company that the Central government has ordered initiation of investigations into the affairs of ILFS and its subsidiaries. IL&FS Engineering shares were up 8.20% at Rs 20.84, IL&FS Investment Managers down 2.61% at Rs 8.20 and IL&FS Transportation Networks rose 3.15% to Rs 22.90 per share.
12 Oct 2018, 10:30:00 AM IST
IMF’s global financial stability report warns of serious risks to emerging market capital flows
The International Monetary Fund's global financial stability report warns of serious risks to emerging market capital flows, by Manas Chakravarty https://t.co/VRJ1JClEXP
TCS shares extended losses and fell as much as 3.3% to Rs 1,913.60 per share on BSE after the company reported its September quarter results. In constant currency terms, the company’s September quarter revenue rose 3.7% from the preceding three months. More than 1.9 million shares change hands in first half an hour of trading, compared with 30-day average of 2.7 million shares. 22 of 45 brokerages covering the stock rate it “buy” or higher, 16 “hold” and seven “sell” or lower; their median PT is Rs 2,060.Edelweiss Securities says, “Sector tailwinds are accelerating TCS’ revenue growth and favourable exchange rate is driving its margin. However, the stock trades at a rich 20.7x FY20E EPS, much higher than large cap peers. Hence, we believe the current share price factors in the underlying sector tailwinds. We maintain ‘HOLD/SP’ with target price of INR2,100 (22xFY20E EPS).”Jefferies cuts PT to Rs 2,300 from Rs 2,315, citing EBIT margin of 26.5% missing their expectation on lower operational efficiency gains.Nomura expects marginal downside to consensus growth numbers and possible tempering of multiples, given the shift in liquidity scenario. The brokerage maintained “Reduce” rating with PT of Rs 1,950.Macquarie, however, expects the company to post strongest organic growth of Tier-1 pack, and believes TCS’ premium valuations can be sustained on the back of this. Macquarie maintains “outperform” rating with PT of Rs 2,345.
12 Oct 2018, 09:52:00 AM IST
Bank of Baroda shares up 4% on CEO term extension
Bank of Baroda shares gained as much as 4.5% to Rs 98.20 per share after the government on Thursday extended by one year the tenure of Bank of Baroda managing director and chief executive officer P.S. Jayakumar. His term was to end on 12 October 2018
12 Oct 2018, 09:47:00 AM IST
Oil stocks trade higher as crude prices fall
Shares of oil and gas companies traded higher as crude oil prices fell 3.4% on Thursday. The Nifty Energy Index was up over 2% with HPCL, Reliance Industries and Indian Oil leading gains. Oil prices steadied today after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4% for the week.Brent crude futures edged up 13 cents to $80.39 a barrel. The contract fell 3.4% on Thursday, after hitting a low of $79.80, its weakest since Sept. 24. U.S. WTI crude futures were up 11 cents at $71.08 a barrel, after falling 3 percent in the previous session to the lowest since Sept. 21. Read more
12 Oct 2018, 09:33:00 AM IST
Market updates: Sensex, Nifty rise over 1%
BSE Sensex gained 470.25 points, or 1.38%, to 34,471.40, while the Nifty 50 rose 158.30 points, or 1.55%, to 10,392.95. The BSE SmallCap and MidCap indices were up 2.60% and 2.08%, respectively.All the sectoral indices on BSE, barring IT and teck, advanced with consumer durables, realty, auto, metal, oil and gas, consumer discretionary goods, energy and finance rising over 2%.On the Sensex Index, 29 shares advanced and 2 declined, while on the Nifty 50 index, 47 advanced and 3 declined. Mahindra, Adani Ports, Yes Bank, Maruti Suzuki, Bajaj Finance and Indiabulls Housing Finance were among the top gainers, whereas TCS, Infosys and HCL tech were the top losers.
12 Oct 2018, 09:25:00 AM IST
TCS shares fall over 2% after Q2 results
Shares of Tata Consultancy Services Ltd fell 2.2% to Rs 1947. In constant currency terms, TCS’s September quarter revenue rose 3.7% from the preceding three months. It grew 11.5% from the figure a year earlier. Currency fluctuations, however, took some sheen off the company’s growth as dollar revenue grew at a slower 3.2% to $5.21 billion in the quarter ended 30 September, compared with the preceding three months.
Yes Bank shares rose as much as 6.08% to Rs 254. The bank on Thursday said that it has selected global leadership advisory firm Korn Ferry to help find a successor to its Managing Director and CEO Rana Kapoor.
12 Oct 2018, 09:11:00 AM IST
Rupee gains against dollar
The Indian rupee was trading higher against the US dollar on Friday, tracking gains in local equity and Asian currencies markets, and ahead key inflation data due later in the day. At 9.10am, the rupee was trading at 73.77 a dollar, up 0.47% from its Thursday’s close of 74.13. The currency opened at 73.80 a dollar. The 10-year gilt yield stood at 7.986% from its previous close of 8.031%. So far this year, the rupee has declined 13.8%, while foreign investors have sold $3.84 billion and $7.92 billion in the equity and debt markets, respectively. Read more
12 Oct 2018, 09:02:00 AM IST
Asian stocks trade mixed
The biggest sell-off in global stocks since February showed signs of easing up on Friday, with some Asian equity markets showing gains and U.S. stock futures climbing. U.S. Treasury yields ticked higher.Japan’s Topix index fell 0.6% as of noon in Tokyo.The Shanghai Composite fell 1.5%.Hong Kong’s Hang Seng index rose 0.2%.Australia’s S&P/ASX 200 Index lost 0.1%.South Korea’s Kospi index gained 0.9%.The S&P 500 futures were up 0.6%.
12 Oct 2018, 08:51:00 AM IST
Commodity corner: Gold prices inch lower, oil steady
Gold: Global gold prices edged down but held near an over two-month high hit in the previous session, when prices surged over 2% as a rout in global stock markets boosted the metal’s safe-haven appeal. Spot gold rate was down 0.2% at $1,221.06 an ounce. US gold futures were down 0.3% at $1,224.50 an ounce.Oil:Oil prices steadied after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4% for the week. Brent crude futures edged up 13 cents to $80.39 a barrel. US WTI crude futures were up 11 cents at $71.08 a barrel.Metals: London aluminium steadied after metals were caught in a widespread market sell-off this week and ahead of Chinese trade data later in the session, but it was set for its biggest weekly drop since June as concerns over raw material costs eased. LME aluminium had edged up 0.3% to $2,027 a tonne. LME copper also found support at $6,253 a tonne. Reuters
12 Oct 2018, 08:42:00 AM IST
Sensex and Nifty erase all 2018 gains
On Thursday, he Sensex closed 2.19%, or 759.74 points, lower at 34,001.15, while the Nifty 50 closed 2.16%, or 225.45 points, lower at 10,234.65 points. It was Sensex’s lowest closing level since 11 April and the Nifty’s lowest since 4 April. With this, Sensex and Nifty have erased all gains for 2018, and are currently 0.16% and 2.81% lower, respectively, for the year to date. Read more
12 Oct 2018, 08:30:00 AM IST
Opening bell: Cues to look out for before trading today
■ US stocks fell sharply on Thursday in a second straight scary day on Wall Street as investors dumped equities around the globe because of fears of rapidly rising interest rates, a possible global economic slowdown and overly ambitious tech valuations. Asia stocks were mixed on Friday morning following another tumble on Wall Street overnight.■ Tata Consultancy Services Ltd (TCS) kicked off the fiscal second-quarter earnings season by reporting its fastest sequential growth in over four years.■ Reliance Industries Ltd (RIL), which operates the world’s single largest oil refinery, likely earned less out of each barrel of crude oil it processed in the September quarter due to costlier oil and a weak rupee, said analysts.■ Non-banking financial companies (NBFCs) are seeing rising borrowing costs despite State Bank of India’s (SBI’s) liquidity support, company executives said, a development that could translate into higher lending rates for customers over the next six months.■ The government increased customs duty on a host of items, including telecommunication equipment, to 20% from the existing 10%, in a bid to reduce India’s current account deficit.■ The government extended by one year the tenure of Bank of Baroda managing director and chief executive officer P.S. Jayakumar. His term was to end on 12 October 2018.■ State-owned Indian Oil Corp (IOC) said it will invest ₹5,463 crore in setting up city gas distribution network for retailing CNG to automobiles and piped cooking gas to households in seven districts.■ Earnings corner: Hindustan Unilever and Karnataka Bank are among the companies that will be announcing their September quarter earnings today. Harsha Jethmalani/MintWith inputs from Reuters