Morning Notes
07th Nov, 2019
 

Trading Range:

Nifty opened flat at 11912 on Wednesday and made a high and low of 12203 and 11850 respectively before closing positive at 11966.

Review/Outlook:

For the day, support for Nifty exists at 11910 and 11850 levels whereas resistance for Nifty stands at 12020 and 12100 levels.

Review/Outlook:

Bank Nifty opened flat at 30225, made a high of 30699, low of 30014, and closed positive at 30610. For the day, support for Bank Nifty exists at 30400 and 30000 levels whereas resistance for Bank Nifty stands at 30800 and 31100 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,470 +0.55
Nifty 11,966 +0.41
BSE 200 5,004 +0.34
BSE Midcap 14,746 +0.15
BSE Smallcap 13,473 -0.36
Dow Jones 27,493 +0.00
NASDAQ 8,411 -0.29
 

DERIVATIVES INDICATORS FOR NOV 07, 2019:

NIFTY 11966.05 (+48.85) (+0.41%)
NIFTY NOV FUTURE 12008.05 (42.00 Points Premium)
NIFTY PCR - OI 1.44(+0.10)
NIFTY OPEN INTEREST 1.64Cr. (+4.46%)
INDIA VIX 15.77 (-0.90%)
NIFTY ROLLOVER 4%

NIFTY OPTIONS ACTIVITY (28-NOV SERIES)

CALL 12000 CE +0.34 lac Shares
CALL 12100 CE +0.31 lac Shares
PUT 11900 PE +0.87 lac Shares
PUT 12000 PE +1.57 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,509 +0.07
Bankex 34,553 +1.39
PSU 7,148 -0.25
Healthcare 13,231 +0.33
IT 15,410 +0.47
 
Market Turn Over (`cr)
Index 06/11 05/11
BSE Cash 2,805 2,819
NSE Cash 40,355 38,537
NSE F&O 1,554,052 926,573
BSE Delivery % 41.83 43.84
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 59.41 39.60
BSE 200 56.22 42.79
BSE 500 45.20 53.60
Total BSE 44.65 48.02
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 56.35 +0.00
Gold Rs./ 10 Gms 38247.00 +0.97
Silver Rs./ Kg 45658.00 +0.35
Rs.- US $ 71.03 +0.40
Rs.- Euro 78.61 +0.33
FII (Rs cr )
06/11* 05/11*
FIIs +398.99 +81.10
MFs - -

*Date refers to the day of activity and not the day on which it is reported.

 
Details Buy Sell Open interest at the
end of the day
Net Position
No. of
Contracts
Value
(Rs. Cr)
No. of
Contracts
Value
(Rs. Cr)
No. of
Contracts
Value
(Rs. Cr)
Value
(Rs. Cr)
Index Futures       45,746.00       3,441.24       43,563.00       3,145.49    1,81,295.00     15,421.92   295.75
Index Options  42,88,876.00  2,93,266.27  42,79,156.00  2,92,642.99    6,93,072.00     57,702.31   623.28
Stock Futures    2,36,645.00     13,614.42    2,49,963.00     14,561.63  15,07,308.00     89,682.37  (947.21)
Stock Options       93,139.00       5,748.60       93,802.00       5,768.42       64,736.00       3,770.15    (19.82)
Total  46,64,406.00  3,16,070.53  46,66,484.00  3,16,118.53  24,46,411.00  1,66,576.75    (48.00)
Corporate News
Maruti Suzuki India (MSIL) and Toyota Tsusho Group, on Wednesday announced setting up one-of-its-kind vehicle dismantling and recycling joint venture (JV), Maruti Suzuki Toyotsu India Private Limited (MSTI). (BL).
Coal India Ltd (CIL) will get into advance agreements with some overseas markets for securing coking coal before going in for asset acquisition. According to Union Coal Minister Pralhad Joshi, “freezing” the order in advance will help the country secure coking coal at a competitive price. (ET).
Prakash Industries on Wednesday emerged as the highest bidder for Bhaskarpara coal block in Chhattisgarh, an official said. Birla Corporation had on Tuesday bagged the Brahmapuri mine in Madhya Pradesh, the official said quoting the results of e-auction for coal mines under the eight tranche. Jindal Steel and Power Ltd (JSPL) was the highest bidder for Gare Palma IV/1 coal block in Chhattisgarh with a bid price of Rs 230 per tonne on Monday. Birla Corporation Ltd bagged the Bikram coal block in Madhya Pradesh with a bid price of Rs 154 per tonne last week. (BL).
ITC’s Kovai Paperboards factory in Tamil Nadu has earned the unique distinction of being the only facility in India to be awarded the Alliance for Water Stewardship Platinum-level certification – the highest recognition for water stewardship in the world. (ET).
Power transmission company Sterlite Power will sell off its power transmission asset in Brazil for $35 million to Vinci Energia FIP – IE. (BS).
Cairn Oil & Gas, Vedanta Ltd has got a 10-year extension to the production sharing contract (PSC) for the Ravva block in Andhra Pradesh. (ET).
State-owned NTPC on Wednesday said it is working on electric vehicle charging infrastructure as it believes that ultimately mobility through EVs will help. (BL).
Drugmaker Sun Pharma has entered into a licensing agreement with AstraZeneca UK Ltd to introduce certain novel ready-to-use (RTU) infusion oncology products in China. Sun Pharma said the agreement will help bring cost-effective and quality drugs to patients in China. The agreement was announced today at the China International Import Expo (CIIE) in Shanghai. (BL).
Realty Stocks, Housing finance stocks will be in focus as Finance Minister Nirmala Sitharaman announced that the Union Cabinet has approved setting up a dedicated fund for funding affordable and middle-income housing projects that are stalled. The special window will be structured as an alternative investment fund which will pool all investments, where the government will put Rs 10,000 crore. Institutions like State Bank of India and Life Insurance Corp among others will make further contributions. The corpus, for now, will be Rs 25,000 crore. (BQ).
Quarterly Earnings
The consumer electricals and electronics major V-Guard Industries Ltd registered 54 per cent increase in PAT at Rs.58.75 crore in the second quarter of the current fiscal, against Rs.38.04 crore in the corresponding quarter last year. The consolidated net revenue from operations for the quarter was Rs.623.27 crore (Rs.604.50 crore), an increase of 3.1 per cent. During the quarter, stabilizer and electrical segment registered growth. Overall, subdued consumer demand impacted top-line growth. (BL).
Exide Industries Ltd posted 15 per cent rise in consolidated net profit at Rs.247 crore for the quarter ended September 30, compared with Rs.214 crore during the same period last year. Consolidated revenue from operations grew 4 per cent during the quarter under review to Rs.3,779 crore (Rs.3,633 crore). (BS).
Gati Ltd posted a loss of ₹2.3 crore for the second quarter ended September 30, against a profit of Rs.9.2 crore in the corresponding quarter last year, on a standalone basis. The express logistics and warehouse services provider logged in lower income of Rs.104.21 crore (Rs.123.18 crore). (BL).
Murugappa Group company EID Parry India has reported a net profit of Rs6 crore for the quarter ended September 30, 2019 when compared with a net profit of Rs11 crore in the year-ago period. Its revenue grew 26 per cent at Rs442 crore when compared with Rs351 crore in the year-ago quarter. (ET).
Indiabulls Housing Finance on Wednesday reported over 32 per cent decline in its consolidated net profit to Rs 702.18 crore in the second quarter ended September 30. The company had posted a net profit of Rs 1,034.92 crore during the corresponding quarter of the previous financial year. Its total income during the July-September 2019 period also came down to Rs 3,420.45 crore, from Rs 4,255.27 crore in the year-ago period, it said in a regulatory filing. (BL).
Fortis Healthcare on Wednesday reported a profit after tax of Rs 111 crore for the quarter ended September, bringing some relief to the company which has been caught in a crossfire in the Daiichi case. The company had posted a net loss of Rs 166.6 crore for the corresponding period of previous fiscal, Fortis said. While the revenues grew 6.3 percent to Rs 1,212.2 crore in Q2FY20, last year during the same period it reported the revenues of Rs 1,139 crore. (BL).
India’s largest private steel maker Tata Steel on Wednesday reported 6 per cent rise in consolidated profit for the September quarter at Rs 3,302.31 crore on the back of one-time deferred tax gain of Rs 4,365.33 crore. Total revenue also declined 15.44 per cent to Rs 34,579.18 crore during the quarter. (BL).
Birla Corporation reported over five-fold jump in consolidated net profit at Rs 88.34 crore for the quarter ended September 30, 2019, compared to Rs 16.29 crore posted in the corresponding period last fiscal. Revenue from operation during the quarter under review stood at Rs 1,626.86 crore as against Rs 1,464.52 crore in the same period last fiscal, it added. Realisation per tonne grew by 6.1% year-on-year to Rs 4,815 (Rs 4,537), while EBITDA per tonne during the quarter under consideration jumped 54% to Rs 956 (Rs 621). (BS).
Manappuram Finance reported 82 per cent rise in consolidated profit at Rs 402.28 crore for the quarter ended September 30. Total consolidated operating income stood at Rs 1,286.78 crore, a rise of 26.85 per cent. Assets under management (AUM) grew by 31.91 per cent to Rs 22,676.93 crore. Gold loan assets under management (AUM) increased by 20.45 per cent to Rs 15,168.34 crore, from the same quarter last year. The board of directors approved an interim dividend of Rs 0.55 per share on face value of Rs 2. (ET).
Leading stock exchange BSE on Wednesday reported 21 per cent decline in consolidated net profit at Rs 36.27 crore for the September quarter of the ongoing fiscal. The bourse had logged a profit of Rs 45.85 crore in the year-ago period, the BSE (formerly known as Bombay Stock Exchange) said in a regulatory filing to the NSE. Total income fell to Rs 159.58 crore during the quarter under review from Rs 164.05 crore in the year-ago period. (BL).
Steel major Tata Steel on Wednesday reported a 5.97 per cent year-on-year rise in consolidated profit at Rs 3,302.31 crore for the quarter ended September 30, on one-time deferred tax gain of Rs 4,365.33 crore. The company had posted a net of Rs 3,116.20 crore in the corresponding quarter last year. Total revenue declined 15.44 per cent to Rs 34,579.18 crore during the quarter under review. (BL).
Drug maker Lupin on Wednesday reported a consolidated net loss of Rs 123.44 crore for the second quarter ended September 30, impacted by provisioning for one-time payment to settle a lawsuit in the US and loss in divestment of injectables business in Japan. The Mumbai-based company had posted a net profit of Rs 288.45 crore in the July-September period of 2018-19. Total revenue from operations stood at Rs 4,359.65 crore for the second quarter as against Rs 3,951.06 crore in the year-ago period, Lupin Ltd said in a regulatory filing. (BS).
State-owned Corporation Bank on Wednesday reported a rise of 26 per cent in its net profit to Rs 129.76 crore for the second quarter ended September 30, on the back of lower provisioning for bad loans. The bank had posted a net profit of Rs 103.01 crore in the corresponding quarter of 2018-19. Its total income also rose to Rs 4,712.97 crore in the second quarter of 2019-20 from Rs 4,216.79 crore in the corresponding quarter of 2018-19, the bank said in a regulatory filing. (ET).
Kolkata-based FMCG major Emami Ltd on Wednesday reported a 16.44 per cent increase in consolidated profit after tax to Rs 95.99 crore in the second quarter ended September 30. The company had posted a consolidated profit after tax of Rs 82.44 crore in the same quarter last fiscal, Emami Ltd said in a regulatory filing. Consolidated revenue from operations stood at Rs 660.05 crore in the second quarter against 628.21 crore in the year-ago quarter, a growth of 5 per cent. (BL).
State-owned Canara Bank on Wednesday reported a rise of 14 per cent in its consolidated net profit at Rs 405.49 crore for the second quarter ended September amid fall in bad loans and healthy income from operations. The bank had posted a net profit of Rs 356.55 crore during the corresponding July-September period of last fiscal ended March 31, 2019. Total income (consolidated) in the second quarter of 2019-20 rose to Rs 15,509.36 crore as against Rs 13,437.83 crore in the same period of 2018-19, Canara Bank said in a regulatory filing. (BL).
Liquor maker Radico Khaitan on Wednesday reported a 58 per cent rise in consolidated net profit at Rs 79.94 crore in the second quarter ended September 30. The company had posted a consolidated net profit of Rs 50.58 crore in the same quarter last fiscal, Radico Khaitan said in a regulatory filing. Revenue from operations in the quarter under review stood at Rs 2,520.05 crore as against Rs 1,906.1 crore in the year-ago period, a growth of 32.2 per cent, it added. (BL).
Bajaj Electricals on Wednesday reported a consolidated net loss of Rs 32.54 crore for the second quarter ended September 30. The company had posted a net profit of Rs 29.83 crore for July-September period of the previous fiscal. Total income for the second quarter stood at Rs 1,106.80 crore as compared with Rs 1,605.77 crore in the previous year, Bajaj Electricals said in a regulatory filing. (BS).
Godrej Consumer Products Ltd (GCPL) on Wednesday reported 28.36 per cent decline in consolidated profit after tax at Rs 413.88 crore for the second quarter ended September 30. The company had posted consolidated profit after tax of Rs 577.73 crore in the same quarter last fiscal, GCPL said in a regulatory filing. Consolidated sales during the period under review stood at Rs 2,608.15 crore as against Rs 2,643.26 crore in the year-ago period, a decline of 1.33 per cent, it added. (ET).
Drug major Cipla on Wednesday posted 25 per cent year-on-year rise in consolidated profit at Rs 471.35 crore for the quarter ended September 30. The pharma major had posted a profit of Rs 377.05 crore in the corresponding quarter last year. Revenue increased 8 per cent to Rs 4,264.24 crore against Rs 3,947.93 crore in the same period last year. (BL).
Economy and Sector News
The Bombay High Court on Wednesday refused interim relief to Adani Group, which had sought an injunction against sale of stake of South African firm Bidvest in the Mumbai airport to GVK Group or any other third party. Adani Group had approached the high court in September seeking execution of its agreement with Bid Services Division Mauritius ('Bidvest'), for sale of Bidvest's 13.5 per cent stake in the airport to Adani. (BL).
As onion prices crossed Rs.100 a kg in certain localities in the capital, the government on Wednesday decided to relax fumigation and endorsement conditions for onions imported from other countries to ensure expedited delivery of the bulb. (ET).
Fitch Solutions on Wednesday raised India’s fiscal deficit forecast to 3.6 per cent of the GDP for this fiscal year, from 3.4 per cent previously, due to weak revenue collections resulting from sluggish economic growth and government’s sweeping corporate tax rate cut. Fitch said it was revising the fiscal deficit forecast as revenue collection is likely to fall far short of the projections in the FY2019/20 Union Budget due to weak goods and services tax (GST) and corporate income tax collections. (BL).
* ET - Economic Times, BS - Business Standard, BL - Business Line, TOI - Times of India, Mint, IE - Indian Express, BT - Business Today, IE - Indian Express
Global Markets
 

DJIA and NASDAQ Composite

US markets drifted on Wednesday after reports that any signing of a partial trade deal with China won’t happen until at least December, deflating early-session gains. Treasuries rebounded after dropping for three days. The Dow Jones Index closed at 27,493, down 0.07 points by 0.00%. The Standard & Poors 500 index closed at 3,077, up 2.16 points by 0.07%. The Nasdaq Composite Index closed at 8,411, down 24.05 points by 0.29%.

FTSE 100

UK markets finished in a mixed state on Wednesday, as investors paused for thought following recent gains, while property stocks remained under the cosh after a downbeat update from Intu Properties. The FTSE 100 index closed at 7,397, up 8.57 points by 0.12%.

 
 
Global Indices
06/11/2019 Clsg Chg%
Dow Jones 27,493 +0.00
NASDAQ 8,411 -0.29
FTSE 100 7,397 +0.12
Bovespa 108,360 -0.33
07/11/2019 Latest
(7:22AM IST)
Chg%
Nikkei 23,313 +0.04
Hang Seng 27,667 -0.08

Nikkei

Asian shares paused near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-U.S. trade deal left investors frustrated at the lack of concrete progress. Nikkei is currently trading at 23,313, up 9.73 points by 0.04%.

Precious Metals

Spot gold was little changed at $1,490.23 per ounce XAU= and well within recent tight trading ranges on Thursday.

Base Metals

London Metal Exchange three-month base metals prices were broadly trading down in the morning session on Wednesday November 6, suppressed by low trading volumes despite stocks flowing out across all the metals today.

Crude Oil

Oil prices nursed losses after taking a hit from a surprisingly large build in U.S. crude inventories on Thursday.

 
 
 

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Disclosures
ACMIIL/its associates and its Research analysts have no financial interest in the companies covered on the report. ACMIIL/ its associates and Research analysts did not have actual/beneficial ownership of one per cent or more in the companies being covered at the end of month immediately preceding the date of publication of the research report. ACMIIL/its associates or Research analysts have no material conflict of interest, have not received any compensation/benefits for any reason (including investment banking/merchant banking or brokerage services) from either the companies concerned/third parties with respect to the companies covered in the past 12 months. ACMIIL/its associates and research analysts have neither managed or co-managed any public offering of securities of the companies covered nor engaged in market making activity for the companies being covered. Further, the companies covered neither are/nor were a client during the 12 months preceding the date of the research report. Further, the Research analyst/s covering the companies covered herein have not served as an officer/director or employee of the companies being covered.

Disclaimer:
This report is based on information that we consider reliable, but we do not represent that it is accurate or complete and it should not be relied upon such. ACMIIL or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in the report. To enhance transparency we have incorporated a Disclosure of Interest Statement in this document. This should however not be treated as endorsement of the views expressed in the report.