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MARKETS LIVE: Sensex gains 150 pts, Nifty above 10150; Bharti Airtel up 5%

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SI Reporter  |  Mumbai  Last Updated at October 13, 2017 09:37 IST

markets, stocks, sensex, nifty, bse, nse

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The benchmark indices are expected to open flat on Friday as held off chasing the shares higher ahead of US and Chinese economic data as well as the Chinese Communist Party congress next week.


Back home, stock-specific trends will take precedence as investors will react to TCS’s earnings, while the deal between Bharti group and Tata Teleservices will also remain in focus. 


Meanwhile, industrial output expanded to a nine-month high of 4.3% in August while the consumer price index (CPI)-based inflation rate remained stagnant at 3.28% in September.

9:26 AM

India Equity Strategy: Nomura

 

Bottom-up analysts’ expectations suggest 9.2% y-y growth in sales and 7.6% y-y growth in EBITDA for our core universe. In this report, we present sector-wise and company-wise details on our earnings expectations for 2QFY18F. Ex oil and gas and financials, we project revenue growth of 9.2% y-y, EBITDA growth of 7.6% y-y and net profit growth of 0.9% y-y. 

 

For most of the sectors, y-y growth has improved on a sequential basis. Autos and the Consumer sectors are the biggest drivers of earnings for our coverage universe. Pharmaceuticals continue to be the biggest laggard, though we expect some improvement q-q. For corporate banks, we expect slippages to come down significantly, though provisioning will likely remain high as banks provide for National Company Law Tribunal cases. The core PPOP of corporate banks has been weak, with low loan growth and NIM pressure. Core PPOP growth is unlikely to surprise positively in this quarter

9:24 AM Sector watch at 9:20am

Source: BSE

9:19 AM Market snapshot at open

Source: BSE

9:15 AM

Tech view on the markets

 

A strong corrective move on Wednesday was followed by a positive opening in our market. As expected, index corrected sharply in the initial hour. But, a strong buying at lower levels pulled the index higher and in fact, the accelerated momentum pushed the index to retest the 10100 mark.

 

Yesterday’s buying interest in last couple of hours has certainly surprised us. It has become very difficult to predict movement in the index and hence, we would rather look to focus on individual stocks. For the coming session, 10135 – 10178 are the levels to watch out for and on the downside, 10035 – 9980 would be seen as immediate support levels.

 

 

(Source: Angel Broking)

9:14 AM Nifty outlook by Angel Broking

It has become very difficult to predict movement in the index and hence, we would rather look to focus on individual stocks. For the coming session, 10135 – 10178 are the levels to watch out for and on the downside, 10035 -9980 would be seen as immediate support levels.

9:13 AM

COMMENT: Christopher Wood, managing director and equity strategist at CLSA

GREED & fear’s base case for now is that the Fed will reverse course sooner rather than later. It is still assumed for now that core inflation in America has already peaked in this cycle. If this is indeed the case, then the Fed is likely to reconsider its outlook if inflation continues to come in below expectations during 1H18, most particularly if the average hourly earnings growth slows down again.

If the Fed chairmanship is taken over by someone prioritising “normalisation” over “data dependency”, and prioritising targeting inflated asset prices over core CPI or PCE inflation, then the immediate consequences for asset markets will be much more negative. But for now the base case is that the Fed will remain in traditional “inflationary targeting” mode.

(Source: Excerpted from Wood’s weekly newsletter, GREED & fear)

9:09 AM

Stock view: Zensar Technologies

We expect the Indian rupee to come under pressures in the short-term. We do believe that the US ultimately may not opt for stringent protectionism for the Indian IT exports considering the political realignment happening at the global level. We also expect the momentum in the consolidation of mid-sized IT companies to continue as the large IT companies are unlikely to grow their revenue base in double digits even in rupee terms. Hence, we consider betting on beaten-down mid-sized IT companies like Zensar could be an attractive opportunity. Hence, we initiate our BUY on the stock with a target price of Rs.900, which is 13.8x its FY2019E EPS of Rs 65

(Source: Equinomics Research)

9:07 AM

RIL: Focus will be on Jio numbers in September quarter

Reliance Industries’ (RIL’s) financials for the quarter-ended September (Q2) to be announced on Friday are being looked at with great expectations.  While the Street has high hopes from the core refining business, given the benchmark Singapore gross refining margins (GRMs) hitting a high recently, the numbers of telecom venture Jio would be closely monitored CLICK HERE FOR THE FULL STORY

9:02 AM

Today’s Picks

Devangshu Datta on Nifty, Bank Nifty, Hindustan Unilever, Infosys, Sun Pharma

8:53 AM

BUY GULSHAN POLY   

CMP: Rs 85.85      

TARGET: Rs 98      

STOP LOSS: Rs 81

CLICK HERE FOR MORE TECHNICAL CALLS

8:53 AM

Corpporate news nugget

·         Tata and Bharti Airtel to combine consumer telecom business in cash-free, debt-free deal

·         Sun Pharma to increase shareholding in Ranbaxy Malaysia to 79.5% from 71.2%

·         DHFL loan to Manpreet Estates under tax scan

·         Indiabulls Housing Finance’s U.K. subsidiary OakNorth Bank gets £154mn investment

·         Piramal Enterprises approves raising Rs. 2,000cr through a rights issue

·         Shriram EPC: Wins Rs. 349cr of multiple orders

8:51 AM

How Tata Tele-Bharti Airtel deal was done in 5 days

The deal between Bharti group and Tata Teleservices is yet another example of how swiftly things can change in business. A collapsed deal was brought back to life in the last five days, people close to the transaction said. 

The talks between the Tatas and Bharti had begun a few months ago but by the end of August the negotiations were not going anywhere. Sources in both companies indicated till the end of September that no deal was possible.  Meanwhile, there were talks with other groups as well including Reliance Jio for a possible merger deal. That too didn’t work. The Tatas were now clearly looking at a closure of the telecom business and had begun sounding out customers and employees last month READ THE FULL STORY HERE

8:50 AM

Merger to give Airtel more subscribers, Tata Tele an easy exit: Analysts

By running the show, Tata Teleservices would have continued to bleed on the financial front. The deal will ensure further losses are arrested, they say CLICK HERE FOR THE FULL STORY

Bharti Airtel

Bharti Airtel

8:48 AM

ICRA on CPI data

The staggered impact on the housing index of the CPI, of the revision in HRA of central government employees, is likely to push up housing inflation further over the coming year.  Moreover, the pass-through of the goods and services tax (GST) to final prices of various goods and services may not be complete. Overall, we expect the CPI inflation to cross 4.0% in the ongoing quarter and exceed 4.5% in March 2018

8:48 AM

Emkay Global on macro data

Aug’17 IIP unexpectedly grew by 4.3% yoy, which was largely broad based, from a subdued growth of 0.9% in Jul’17. The divergence in the growth estimate was largely due to unexpected growth in capital goods and consumer non-durables sector. Inventory buildup on upcoming festival season and re-stocking post the GST roll-out might have shown sharp uptick in IIP growth which might continue in Sep’17 as well.

On the other hand, CPI remained stagnant at 3.3% in Sep’17, we were expecting the inflationary pressure to further buildup to 3.6%. Although, the headline CPI remained constant, the increase in inflationary pressure was broad based as indicated by the diffusion index. Core inflationary pressure has intensified due to impact of HRA implementation. Implementation of 7th pay commission by the states and PSU’s is likely to increase the CPI by another 100-150bps in 18-24 months. We maintain our view of hardening inflation outlook (4.2-4.5% with an upside bias) and RBI refraining from any further rate cuts.​

8:47 AM

Asian markets

Asian stocks held firm near a 10-year high on Friday thanks to expectations of brisk global growth. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1% having gained 3.4% so far this month. Japan’s Nikkei was little changed.

Wall Street shares dipped slightly on Thursday, pulled down by a fall in AT&T after the telecoms company reported subscriber losses in its cable TV business.

But MSCI’s broadest gauge of the world stocks exchanges covering 47 markets hit another record high, extending its gains so far this year to 17%.

8:44 AM Singapore Nifty

At 8:40 am, SGX Nifty was trading at 10,127, up 1 point or 0.01%.

8:22 AM Good Morning!

Welcome to Business Standard’s market liveblog.

First Published: Fri, October 13 2017. 09:22 IST

MARKETS LIVE: Sensex gains 150 pts, Nifty above 10150; Bharti Airtel up 5%

Catch all live market action here

Catch all live market action here

The benchmark indices are expected to open flat on Friday as held off chasing the shares higher ahead of US and Chinese economic data as well as the Chinese Communist Party congress next week.


Back home, stock-specific trends will take precedence as investors will react to TCS’s earnings, while the deal between Bharti group and Tata Teleservices will also remain in focus. 


Meanwhile, industrial output expanded to a nine-month high of 4.3% in August while the consumer price index (CPI)-based inflation rate remained stagnant at 3.28% in September.

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SI Reporter

Business Standard

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