Indices recoup losses; Sensex, Nifty settle higher for fourth day in a row13 min read . Updated: 21 Oct 2020, 03:45 PM IST
- Bajaj Finserv, UltraTech Cement, Chennai Petroleum Corporation, Colgate-Palmolive, Syngene International are among the 31 companies scheduled to announce their quarterly earnings today
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Indian equities rally to end higher for fourth straight day
Despite turning negative during the day, Indian equity indices rallied higher, led by heavyweights HDFC twins, ICICI Bank, and Infosys, in the last leg of the trade to settle higher for the fourth day in a row.
At close on Wednesday, the Sensex was up 162.94 points or 0.4% at 40707.31, while the Nifty was up 40.90 points or 0.34% at 11937.70. About 1,354 shares had advanced during the day, 1,269 declined, and 165 were unchanged.
Power Grid Corp, Bharti Airtel, Tata Steel, Hindalco and GAIL were among major gainers on the Nifty, while Britannia, TCS, SBI Life Insurance, Hero MotoCorp and HDFC Life dragged.
Among sectors, metal index gained over 2% followed by bank, infra and energy indices, while IT, auto and FMCG stocks suffered losses.
Broader indices ended mixed, with Nifty Midcap 100 closing higher and Nifty Smallcap 100 index in the red.
Most broad market indices recover
Union Cabinet approves productivity linked bonus and non-productivity linked bonus for 2019-2020
More than 30 lakh non-gazetted employees will benefit from the bonus and the total financial implication will be ₹3,737 crore: Union Minister Prakash Javdekar.
DLF pre-leases 7.7 lakh sq ft office space in Chennai to Standard Chartered GBS: PTI
DLF's rental arm has pre-leased 7.7 lakh sq ft office space to Standard Chartered GBS in an upcoming commercial tower in Chennai to be constructed at a cost of around ₹450 crore.
Nifty recoups losses, above 11,900
Markets turn positive
TCS worst hit among Sensex stocks
Indian rupee settles lower for the day
The Indian rupee ended at 73.58 per dollar today compared with Wednesday's close of 73.46 amid weakness in markets.
The unit had opened at 73.41 per dollar.
Colgate Palmolive reports September quarter net profit at ₹2.7 billion
The company's net profit rose to ₹2.74 billion during the September quarter from ₹2.44 billion a year ago. Net sales were at ₹12.78 billion vs ₹12.13 billion in July-September 2019.
The company has declared an interim dividend of ₹18 per share.
Sensex stocks at this hour
All Nifty broad market indices in the red; India VIX up 2%
Gold prices tick higher: Reuters
Gold rose on Wednesday as optimism that U.S. lawmakers could reach an agreement on a pre-election coronavirus relief package weakened the dollar and bolstered bullion's appeal as a hedge against inflation.
Spot gold gained 0.6% at $1,918.56 per ounce by 0742 GMT, after hitting a one-week high earlier in the session. U.S. gold futures were up 0.4% at $1,922.10 per ounce.
Top losers on BSE at this hour
Nifty top gainers/losers
RIL, TCS pull Sensex into the red
Bajaj Finance Q2 net profit down 36% on year
Bajaj Finance reported a 36% year-on-year decline in its consolidated net profit for the September quarter to ₹965 crore from ₹1,506 crore. Net interest income rose 4% to ₹4,165 crore. Gross NPA was at 1.03% against 1.4% in the previous quarter while net NPA declined to 0.37% from 0.5% sequentially.
Markets turn negative
Nifty broad market indices at this hour
Cathay Pacific cuts 8,500 jobs, shutters regional airline: AP
Hong Kong airline Cathay Pacific Airways said Wednesday it would cut 8,500 jobs and shut a regional airline as it grapples with the plunge in air travel due to the pandemic.
About 5,300 employees based in Hong Kong and another 600 elsewhere will likely lose their jobs, and 2,600 unfilled positions will be cut. The cuts are about 24% of the company’s workforce, Cathay Pacific said in a statement.
European stocks slip as healthcare, real estate sectors weigh: Reuters
European shares slipped on Wednesday as losses in defensive sectors outweighed optimism over encouraging quarterly results from consumer giant Nestle and telecoms equipment maker Ericsson.
Israel and UAE open talks over top-secret oil pipeline: Bloomberg
Israel and the United Arab Emirates have opened talks over an oil pipeline linking the Red Sea with the Mediterranean, whose operations Israeli officials treat as top secret.
Europe Asia Pipeline Co., controlled by Israel’s government, and UAE-based MED-RED Land Bridge Ltd. signed a memorandum of understanding to collaborate on the transportation of crude and oil products between the Persian Gulf and Western markets, according to an EAPC statement on Tuesday.
Sensex contributors at this hour
Nifty at 12k: Stocks that drove the rally
At 12:30 pm, the Nifty was at 12,011.45, up 114.65 points or 0.96%. The BSE Sensex was at 40,949.56, up 405.19 points or 1.00%.
While equities continue to rally, concerns of polarisation within the index have worried investors for some time now. Of all the Nifty stocks, only 20 have seen positive returns since 20 February till date. Among all the Nifty index stocks, only 10 stocks have single-handedly taken Nifty back to 12000-levels after it saw a massive crash in March following covid-19 outbreak.
Besides Reliance Industries, only healthcare and IT stocks have seen huge buying interest in this period hinting that the rally is skewed, a phenomenon not considered healthy.
Power Grid top gainer on Sensex at this hour
RIL slips into the red bucking broader market cues
AMFI releases list of prohibited names for mutual fund distributors
Following a Sebi guidance note barring mutual fund distributors (MFDs) from using words like independent financial advisor and other ‘similar names’ on 23 September, the Association of Mutual Funds in India (AMFI) on 20 October released a list of 52 prohibited names for MFDs.
The list includes words such as advisor, financial planner and wealth advisor in the name of an MFD. Alongside the list, AMFI has also released a list of acceptable names such as money services, asset services and securities. Only investment advisors registered with Sebi are allowed to use the prohibited names.
Bajaj Financial Services marginally ahead of September quarter results
AB Fashion in talks with Walmart for strategic alliance w/Flipkart & Myntra: CNBC TV18
Nifty near day's high
Vedanta surges on Hindustan Zinc's ₹5,843 crore dividend shot
India to manufacture a large portion of covid vaccines: Gates Foundation CEO
India's private companies will play a huge role in manufacturing of covid vaccines for the world, and a very large portion of these are likely to be manufactured here through the country's strong and robust private sector partners, said Bill and Melinda Gates Foundation CEO Mark Suzman.
In an interview to news agency PTI, Suzman noted that India is doing everything it can right now with the resources at hand to fight the pandemic.
HCL Tech among worst hit stocks on Sensex today
Nestle raises guidance after third quarter sales beat estimates: Reuters
Swiss food group--the world's largest--Nestle raised its guidance for 2020 organic sales growth to around 3% after beating third-quarter expectations on Wednesday with 4.9% growth driven by strong demand for pet food and health products.
For the first nine months of the year, Nestle's organic sales grew by 3.5%, beating the 2.8% in a company-supplied consensus analysts' estimates.
Nestle had previously expected organic growth of 2-3% for this year. It confirmed it wanted to improve its margin.
After Tuesday's surge, Nifty IT index under pressure today
Damani buys stake in Godrej Industries
Ramesh Damani bought 1.46% stake in Godrej Industries in the September quarter, as per shareholding data on the BSE.
SBI offers up to 20 bps concessions for loans above ₹75 lakh based on CIBIL score
Difficult to achieve govt's infra investment target without developing bond markets: Sebi's Tyagi
Sebi's timely regulations have helped markets sustain during these gloomy times, said chief Ajay Tyagi.
Alembic Pharma gets US FDA nod for Fenofibrate capsules
Fenofibrate capsules used along with proper diet help lower ‘Bad’ cholesterol and fats.
Google says no to rolling back 30% Play Store commissions in first policy conference in India
Google said no to rolling back the 30% commissions it charges from developers for selling digital content and services through the Play Store.
"We understand how hard developers work to build mobile apps. We know it’s a huge investment. Building a mobile platform and a store to help developers reach billions of users also takes significant work and investment. Our business model makes it possible for us to keep a safe and thriving platform and invest in millions of developers, and a lot goes into making that happen," said Kunal Soni, director of business development, Apps and Games, India, SEA and ANZ, Google Play, answering a question from an Indian developer about whether Google plans to roll back the charge in the coming months.
Five killed, 34 injured as speeding bus falls into gorge in Maharashtra's Nandurbar district: PTI
HUL weak amid strong broader market
The maker of Lifebuoy soaps said rural markets have emerged stronger but warned that demand in urban markets could take a while to recover.
Net profit rose to ₹2,009 crore for the three months to September from ₹1,848 crore a year ago. Revenue for the quarter increased 16% to ₹11,442 crore from ₹9,852 crore.
Nifty Metal surges most among sectoral indices
Prabhat Dairy surges despite Sebi probe
Sebi has pulled up the company for not cooperating with forensic auditors and asked it to deposit ₹1,292 crore in a nationalised bank within seven days till the conclusion of the audit.
Nifty technicals: Sameet Chavan, chief analyst-technical and derivatives, Angel Broking:
The Nifty index opened on a flat note and moved higher till noon up to 11950. However, the index then gave up the intraday gains and consolidated within a range to end the day tad below 11900. It was a day of consolidation for the index as no major movement was seen on either side. Stock specific action continued within the range and on the short term charts, it is observed that the trading range for index has shrunk to 11800-12000. Markets seem to be waiting for some trigger to come of this range and a directional move is expected only post a breakout. A move beyond 12000 would bring back the optimism to lead the indices higher. Till then, traders are advised to continue to trade with a stock specific approach.
Rupee opens at 73.40 per dollar vs Tuesday's close of 73.46 to a dollar
FMCG stocks under pressure led by Britannia
Varun Berry, managing director at Britannia Industries, known for Tiger and Marie Gold biscuits, said rural markets continue to grow faster than urban. Modern trade has suffered and sales are tepid because consumers are wary of returning to stores. E-commerce has been growing very aggressively.
Nifty sectoral indices
Nifty broad market indices
Nifty view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty is trading around the upper end of the range 12000-12050. We need to get past the 12050 levels in order to move to higher levels. We could target 12200-12300 once we have crossed 12050. The overall trend is positive with good support at 11650.
IndusInd Bank top gainer on Sensex at this hour
Nifty top gainers/losers at this hour
Sensex stocks in early deals
Markets in early deals
Nifty in opening deals
Sensex stocks at pre-open
Sensex up 0.6% at 40,790.41 in pre-open
Nifty in pre-open
Market check at pre-open
Market view: Aamar Deo Singh, head advisory, Angel Broking
Markets traded sideways on Tuesday, with the benchmark index Nifty 50 closing @ 11,896, up 23 points, on the back of positive global cues. The advances outnumbered declines by 5:4. Amongst the Top 3 Nifty gainers, were Zee, Bharti Infratel and HCL Tech, whereas Britannia, ONGC and IOC were amongst the Top 3 Nifty losers. The markets are witnessing selling pressure and profit booking, with Nifty seeing resistance around 12000-12050 zone while support is seen around 11600-11650 zone.
Sebi pulls up Prabhat Dairy for failing to comply with auditors
The Securities and Exchange Board of India (Sebi) which is investigating suspected irregularities in the delisting of Prabhat Dairy Ltd Tuesday asked the company to deposit ₹1,292 crore in an escrow account for failing to cooperate with forensic auditors.
Sebi is probing whether Prabhat Dairy deliberately depressed its book value and short-changed minority investors during its delisting process. Sebi started the probe and subsequent forensic audit following a preliminary examination by the stock exchanges.
Sales, ability to repay debt fell in Q1: RBI
Sales and debt servicing capacity of Indian companies slipped in the June quarter as the pandemic spread across the country, central bank data released on Tuesday showed.
Aggregate sales of 1,619 manufacturing firms saw a sharp contraction of 41.1% in the June quarter from a year earlier. That compares with a 15.6% decline in the preceding three months. The contraction, the Reserve Bank of India said, was broad-based with only pharmaceutical companies recording higher sales on both year-on-year and sequential basis.
Non-information technology services firms also registered a sharp contraction from 41% a year ago in their nominal sales. Sales growth of IT sector companies remained in positive terrain but moderated to 3.2% in the June quarter.
Nifty view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets have entered into a rangebound zone - between 11650 and 12050. For an impulsive move to trigger, we would need to get past one of these levels on the back of good volumes. Until then traders are advised to maintain caution.
Oil prices down in Asian trade
Oil prices fell on Wednesday after a surprise climb in US crude stockpiles heightened concerns about a global supply glut.
Brent crude futures fell 0.56% to $42.92 a barrel while U.S. crude futures slipped by 0.55% to $42.92 per barrel.
Stocks to Watch
Shares of Reliance Industries Ltd, Vedanta, HUL, Britannia Industries will be in focus today.
Bajaj Finance, Bajaj Finserv, UltraTech Cement, Chennai Petroleum Corporation, Colgate-Palmolive, Syngene International are among the 31 companies scheduled to announce quarterly earnings today.
Bharat Heavy Electricals, Canara Bank, Indiabulls Housing Finance, Vodafone Idea, Jindal Steel & Power, Mindtree, National Aluminium Company, Punjab National Bank, Steel Authority of India and Tata Motors are under the F&O ban for October 21. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
SGX Nifty futures higher
Indian equities may open higher as indicated by the SGX Nifty futures which were up 0.33% at 11,934.50.
Asian stocks rise on US stimulus hopes
Asian shares rose on Wednesday as renewed hopes for a new round of US stimulus drew money into equities from government debt.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.56%. Australian stocks edged up by 0.1%, while shares in China rose 0.07%. Tokyo shares gained 0.4%.
U.S. stock futures also rose 0.44%.
The US dollar hit a one-month low against a basket of major currencies as investors awaited the outcome of the fiscal stimulus talks and as coronavirus cases spiked in Europe.
US equities end higher Tuesday on stimulus hope: Reuters
Wall Street shares closed higher Tuesday on hope that U.S. lawmakers are nearing a deal on a stimulus package aimed at cushioning the economic shock from the coronavirus pandemic. House of Representatives Speaker Nancy Pelosi said late on Tuesday that she hoped a coronavirus aid agreement could be accomplished by the end of this week.
The Dow Jones Industrial Average closed up 113.37 points, or 0.4%, to 28,308.79, the S&P 500 ended 16.2 points higher, or 0.47%, to 3,443.12 and the Nasdaq Composite closed 37.51 points higher, or 0.33%, to 11,516.49.
The U.S. Justice Department and 11 states, meanwhile, filed an antitrust lawsuit against Alphabet Inc's Google for allegedly breaking the law in using its market power to fend off rivals. Alphabet's shares closed up 1.4%.