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Closing Bell: Sensex, Nifty end flat, TCS, Infosys, Kotak Bank, Sun Pharma drag indexes, HDFC twins, ICICI Bank, Maruti, HUL bat for the bulls

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Indian shares ended lower, just below the flatline on Wednesday, after swinging between gains and losses. The Sensex ended flat at 35,142, down by just 2.5 points, while the Nifty gave up the 10,600 mark, settling at 10,576, lower by 6.20 points, or 0.06 percent. Public sector oil marketing companies of HPCL and BPCL were top Nifty gainers after crude prices tanked overnight by 7 percent. Shares of OMCs closed with substantial gains, but after coming off from the day's high as crude prices edged up. Sun Pharma shares ended with deep cuts after the pharma company missed Q2 revenue estimates. Auto anciliary major Motherson Sumi slipped more than 13 percent after posting weak numbers. ICICI Banka nd HDFC Bank batted for the bulls, while TCS and Kotak Bank dragged Nifty lower. Here are the main highlights from the stock markets today:

Closing Bell: Sensex, Nifty end flat, TCS, Infosys, Kotak Bank, Sun Pharma drag indexes, HDFC twins, ICICI Bank, Maruti, HUL bat for the bulls
  • Sensex heatmap at close: Maruti Suzuki, ONGC among gainers, Sun Pharma ends 7% lower##Sensex heatmap at close: Maruti Suzuki, ONGC among gainers, Sun Pharma ends 7% lower

    Closing Bell: Sensex, Nifty end flat, TCS, Infosys, Kotak Bank, Sun Pharma drag indexes, HDFC twins, ICICI Bank, Maruti, HUL bat for the bulls
  • Closing Bell: Sensex, Nifty close flat, HDFC twins, ICICI Bank offset losses from IT, pharma##Closing Bell: Sensex, Nifty close flat, HDFC twins, ICICI Bank offset losses from IT, pharma


    The Sensex ended at 35,142, down by just 2.5 points, while the Nifty gave up the 10,600 mark, settling at 10,576, lower by 6.20 points, or 0.06 percent. Broader markets ended mixed with the Nifty MidCap flat in the red, while the BSE MidCap marginally up by 0.19 percent. Oil marketing companies' shares ended as top gainers on the Nifty although off from the day's high as crude prices recovered a bit. HPCL, BPCL, UPL, Maruti Suzuki, ONGC, Asian Paints, IndusInd Bank, HUL were among top index gainers, rising by up to 4.7 percent. Shares of Sun Pharma, Tech Mahindra, Gail, HCL Technologies, Kotak Mahindra, TCS, M&M, Infosys shares fell by up to 7.41 percent.

  • Oil marketing companies slip from highs as crude rises##Oil marketing companies slip from highs as crude rises

  • Supreme Court-Rafale deal price hearing: Major updates and highlights##Supreme Court-Rafale deal price hearing: Major updates and highlights

    The Supreme Court on Wednesday began a crucial hearing on the pricing details of the 36 Rafale fighter jets, days after the Modi government submitted the information to the court in a sealed cover. A bench-led by Chief Justice Ranjan Gogoi and Justices SK Kaul and KM Joseph is hearing the matter. Here are the main updates and highlights from the various submissions made before the apex court so far:

    Attorney General KK Venugopal's closing remarks in the Supreme Court:  
    -What is involved is the security of the country.
    -First Rafale aircraft will be delivered only next year, we have fallen back severly on the timeline.
    -Air Force has been complaining that we are falling back in our defence preparedness, 
    -Had we had Rafale for Kargil, from 60 kms away the Rafale could have targetted the enemy.

    Earlier, Venugopal had said that the government has no role in selection of the offset partner, strictly a commercial decision taken by Dassault. He also said that offsets are critical to improve indigenous technology. 

    The AG responded to the Supreme Court's observation made before his closing statement. Here is what the apex court had said:
    -Offset partners provided to bring bank a chunk of the investment, technology back to the country.
    -What happens if the Offset partner is not competent financially, what happens to the country's interest.
    -Agreement with Dassault can't be contrary to DPP. 

  • Market update: Sensex, Nifty trade in the green, HDFC twins, ICICI Bank, HUL support##Market update: Sensex, Nifty trade in the green, HDFC twins, ICICI Bank, HUL support

    Indian shares traded volatile in the second half of Wednesday's trading session. The Sensex was up by 44 points, or 0.12 percent, trading at 35,188 at 3.05 pm, while the Nifty tradedf at 10,594, up by 11.20 points, or 0.11 percent. HDFC Bank, ICICI Bank, Hindustan Unilever, Maruti Suzuki, SBI, HDFC, IndusInd Bank, Asian Paints, ONGC, Bharti Airtel batted for the bulls, while TCS, Infosys, Sun Pharma and Kotak Mahindra Bank along with M&M dragged indexes. 

  • European indices down as crude oil prices fall more##European indices down as crude oil prices fall more

    Key European indices fell today after crude oil prices fell further due to fear of weak global demand. Oil prices fell as much as 7 percent on Tuesday to their lowest in more than three years. News that Italy refused to cut its spending targets as advised by the European Union also weighed on sentiment. Energy stocks in the region were among the worst performers due to the sharp fall in crude oil prices. Meanwhile, German GDP figures will be released today, amid fears of a slowdown in the country's economy.

  • Power companies up as Supreme Court might delay verdict on RBI circular##Power companies up as Supreme Court might delay verdict on RBI circular

    Shares of power companies were trading higher today following a media report that the Supreme Court is likely to delay a verdict on all cases filed against the Reserve Bank of India's February 12 circular. The circular had asked banks to treat even a day's delay in payments as default, and initiate insolvency proceedings against such a company in 180 days. Essar Power, RKM Power, Infrastructure Leasing & Financial Services, GMR Energy, Rattan India, and KSK Mahanadi, had filed cases against the circular after the Allahabad High Court did not grant relief to power companies from the circular. At 2.05 pm, shares of NHPC, NTPC, Adani Power, Power Grid Corp, Tata Power, GVK Power & Infrastructure, KSK Energy Ventures, Torrent Power, SJVN were up 0.5-4.0 percent.

  • Supreme Court-Rafale deal price hearing: Major updates and highlights##Supreme Court-Rafale deal price hearing: Major updates and highlights

    The Supreme Court on Wednesday began a crucial hearing on the pricing details of the 36 Rafale fighter jets, days after the Modi government submitted the information to the court in a sealed cover. A bench-led by Chief Justice Ranjan Gogoi and Justices SK Kaul and KM Joseph is hearing the matter. Here are the main updates and highlights from the various submissions made before the apex court so far:

    SC asks: How was the PM making announcements about the deal about 36 Rafale aircraft when the earlier RFP wasn't even withdrawn? 
    AG responds: The process for withdrawal of the RFP began prior to the announcement.

  • Vodafone Idea trades under pressure ahead of Q2 results##Vodafone Idea trades under pressure ahead of Q2 results

    Shares of Vodafone India traded lower at Rs 40.35, down by nearly a percent, ahead of the July-September quarter earnings on Wednesday, underperforming the sector by 2.61 percent. The telco's stock has been losing for the last three days and has fallen more than 4 percent during the period. While the stock has recovered from its 52-week low of Rs 32.55 hit on October 8, shares of Vodafone Idea have slumped more than 66 percent from its 52-week high of Rs 118.90 hit on January 5 this year. The stock traded above 20 day moving average, but lower than 100 day and 200 day moving averages. Rival Bharti Airtel's shares traded at Rs 303.85, higher by 2.12 percent, gaining nearly 1.37 in the last three days. 

  • Tata Motors trades in the red, Moody's revises outlook to negative##Tata Motors trades in the red, Moody's revises outlook to negative


    Shares of Tata Motors traded at Rs 178.75, down by 0.42 percent on the NSE at 1.45 pm. Moody's Investors Service has changed the outlook on Tata Motors corporate family rating to negative from stable. At the same time, Moody's has affirmed the corporate family rating and the company's senior unsecured instruments ratings at Ba2. Meanwhile, benchmark indexes traded flat with the Nifty at 10,593, up by just 10.65 points, or 0.10 percent, while the Sensex traded at 35,190, up by 46 points, or 0.13 percent. 

  • Motherson Sumi second-quarter profit falls on higher expenses##Motherson Sumi second-quarter profit falls on higher expenses


    Auto parts maker Motherson Sumi Systems Ltd posted a 14.9 percent fall in second-quarter profit hurt by higher expenses, well below analysts’ estimates. Net profit fell to Rs 3.71 billion ($51.46 million) in the second quarter that ended Sept. 30, from Rs 4.36 billion a year earlier, the company said. Analysts on average had expected a profit of Rs 4.83 billion, according to IBES data from Refinitiv. Total revenue from operations increased 12.6 percent to Rs 151.05 billion and gross sales outside India, which account for most of the company’s sales, rose 11.3 percent to Rs 128.75 billion. Total expenses rose 13.9 percent to 144.24 billion rupees. (Reuters)

  • Supreme Court-Rafale deal price hearing: Major updates and highlights##Supreme Court-Rafale deal price hearing: Major updates and highlights

    The Supreme Court on Wednesday began a crucial hearing on the pricing details of the 36 Rafale fighter jets, days after the Modi government submitted the information to the court in a sealed cover. A bench-led by Chief Justice Ranjan Gogoi and Justices SK Kaul and KM Joseph is hearing the matter. Here are the main updates and highlights from the various submissions made before the apex court so far:

    Attorney General to the Supreme Court: 
    Government withdrew from the MMRCA deal for 126 aircraft due to stalemate, later decided to opt for 36 aircraft in flyaway condition.
    Rafale had gone through various committees for approval.

    Supreme Court asked Attorney General:
    Did you at any point disclose the details of weaponry mounted upon the aircraft under the old deal?

    Attorney General to the Supreme Court:
    In neither the first nor the latest RFP, were details of weaponry on the aircraft made public. 

  • Zee Entertainment volatile on confusion over promoter stake sale##Zee Entertainment volatile on confusion over promoter stake sale

    Shares of Zee Entertainment Enterprises were volatile, oscillating between gains and losses, as investors were confused over the impact of planned stake sale by promoter. Shares of the company fell 4 percent earlier today after one of the company's promoters, Essel Group, said it will sell up to 50 percent of its holding by April to a strategic partner, raising concerns over the longevity of the company's business model. However, the stock managed to recoup those losses and surged as much 7 percent as brokerages said that the stake sale will allow the company to enhance its product offering and on anticipation of an open offer from any new investor. At 12.24 pm, shares of the company traded 4 percent higher at Rs 456.05. (Cogencis)

  • Supreme Court-Rafale deal price hearing: Major updates and highlights##Supreme Court-Rafale deal price hearing: Major updates and highlights


    The Supreme Court on Wednesday began a crucial hearing on the pricing details of the 36 Rafale fighter jets, days after the Modi government submitted the information to the court in a sealed cover. A bench-led by Chief Justice Ranjan Gogoi and Justices SK Kaul and KM Joseph is hearing the matter. Here are the main updates and highlights from the various submissions made before the apex court so far:

    Attorney General KK Venugopal told the Supreme Court that:

    -The agreement between France, India provides for classifying information. 
    -Information can be disclosed only with permission from the French government.
    -Parliament has not been given complete cost details.
    -Secrecy is with respect to avionics, weaponry. 
    -If pricing details disclosed, adversaries will be able to compute the nature of the weapon systems that have been included in the Rafale Deal.

    -Issue is for experts, is the judiciary competent in deciding the choice of entire weapon systems.


    CJI Gogoi responded: Do not want debate, discussion on the prices right now. Prices need to be debated only if the court decideds that the prices need to come into the public domain.

  • Hindustan Unilever at 1-month high, among top FMCG gainers##Hindustan Unilever at 1-month high, among top FMCG gainers

    Shares of Hindustan Unilever surged over 4 percent to hit one-month high of Rs 1,739.50, making the stock one of the few top gainers so far this year among fast moving consumer goods companies.    Investors are scouting for the leading Nifty 50 stocks in a strong market but the shares of Hindustan Unilever are among those steeply priced, so there could be limited upside, an analyst said. At 12.15 pm, shares of Hindustan Unilever were up 3.7 percent at Rs 1,732.95. So far in 2018, the stock has gained 27 percent, beating the Nifty FMCG, which has risen 8.5 percent. (Cogencis)

  • October WPI inflation comes in at 5.28%, food inflation comes in at -0.64%##October WPI inflation comes in at 5.28%, food inflation comes in at -0.64%

  • Market update: Sensex, Nifty recover led by HDFC twins, HUL, midcaps outperform##Market update: Sensex, Nifty recover led by HDFC twins, HUL, midcaps outperform


    The Sensex surged to 35,203.68, up by 59 points, or 0.17 percent, while the Nifty traded above the 10,600 mark, at 10,608, higher by 26 points, or 0.25 percent at 11.38 am. The BSE MidCap was higher by 0.63 percent, while the NSE MidCap rose by 0.4 percent. Shares of Hindustan Unilever, HDFC twins, ICICI Bank, SBI, IndusInd Bank, Asian Paints, Maruti, Bharti Airtel, Tata Steel were major supporters, while Infosys, TCS, Sun Pharma and Axis Bank dragged.

  • Varroc Engineering's consolidated PAT rises 8% on year in Jul-Sep, sales jump 24%##Varroc Engineering's consolidated PAT rises 8% on year in Jul-Sep, sales jump 24%

    Varroc Engineering Ltd posted a nearly 8 percent year-on-year rise in consolidated net profit for the September quarter at Rs 1 billion. Revenue from operations rose 24 percent at Rs 30 billion. In July-September, total expenditure, including finance cost, rose to Rs 28.82 billion from Rs 23.17 billion a year ago. Finance cost declined over 6 percent on year to Rs 208 million. The company's operating margin expanded to 10.12 percent in July-September from 9.06 percent a year ago. Tax outgo for July-September was Rs 435.4 million as against Rs 290.1 million a year ago. In April-June, the company's net profit was Rs 994.8 million and revenue was Rs 29.3 billion. At 11.12 am, shares of Varroc Engineering were 4.1 percent lower at Rs 781.81 on the NSE. (Cogencis)

  • Tata Steel hits 1-month high on strong July-September earnings##Tata Steel hits 1-month high on strong July-September earnings

    Shares of Tata Steel hit a one-month high of Rs 610.60 as the company posted robust earnings for the September quarter. The stock was among the best performers on the Nifty 50, up nearly 3 percent at Rs 605.95. Tata Steel's consolidated net profit and sales were sharply above estimates, led by a strong performance in its Indian operations. "We like Tata Steel given the integrated Indian operation with access to captive iron ore and coking coal mines (partially), enabling to report a higher EBITDA/tonne vis-a-vis its peers in the domestic steel industry," brokerage firm ICICIdirect.com said in a note. (Cogencis)

  • Asian Paints up as global crude oil prices fall sharply##Asian Paints up as global crude oil prices fall sharply

    Shares of Asian Paints hit their one-month high at Rs 1,337.95, after global crude oil prices fell nearly 7 percent on Tuesday, which may ease pressure on input costs of the company. The fall in crude prices eased investors' concerns over the company's margins. Raw material costs, which include crude oil derivatives and titanium dioxide, accounted for 66 percent of the paint-maker's total expenditure in July-September, up from 56 percent a year ago. At 10.15 am, shares of Asian Paints quoted at Rs 1,328.65, up by 3.4 percent on the NSE. The benchmark Nifty traded flat at 10,584. The Sensex was at 35,084, down by 61 points, or 0.17 percent. 

  • Market update: Sensex, Nifty erase opening gains on selling in IT stocks##Market update: Sensex, Nifty erase opening gains on selling in IT stocks

    Benchmark indexes came off highs as selling in shares of technology companies, Sun Pharma and Zee Entertainment dragged. The Nifty IT index was down nearly 2 percent, the worst hit among sectoral indices, due to a sharp rise in the rupee against the dollar. Shares of Infosys, HCL Technologies, Tata Consultancy Services, Tech Mahindra and Wipro were down 1-3 percent, and among the worst hit on the Nifty 50. Sun Pharmaceutical Industries was the worst performer on the Nifty 50, down nearly 4 percent, due to weak September quarter earnings, while news of a stake sale by promoters dragged shares of Zee Entertainment over 3 percent lower. At 10.05 am, the Nifty was at 10,563, down by 19 points, or 0.18 percent. The Sensex was at 35,058, down by 85 points, or 0.24 percent. 

  • Sun Pharma leads the losers on Nifty after a lacklustre Q2##Sun Pharma leads the losers on Nifty after a lacklustre Q2

  • Opening Bell: Sensex, Nifty open higher as crude prices fall##Opening Bell: Sensex, Nifty open higher as crude prices fall


    The Sensex opened 186 points, or 0.53 percent, at 35,330, while the Nifty also surged 52 points, or 0.50 percent, to start at 10,635. The Nifty MidCap surged more than 110 points, or 0.64 percent, to open at 17,602. The Nifty Bank too jumped nearly 184 points, or 0.71 percent, to begin at 25,952. Benchmark indexes surged on account of lower crude oil prices, which fell 7 percent, easing macro-economic concerns. Public sector downstream companies of HPCL, IOC and BPCL were among top Nifty gainers, rising between 3.4 and 5 percent. Asian Paints and Tata Steel were other major gainers, rising by up to nearly 3 percent. Sun Pharma was leading the losers on Nifty following a weak set of Q2 numbers. The stock dipped 2.5 percent. Other major losers were Zee Entertainment, HCL Technologies, Infosys and Tata Consultancy Services, falling by up to 2.10 percent. 

  • Rupee opens at 2-month low against the US dollar##Rupee opens at 2-month low against the US dollar

    The Indian rupee opened at nearly two-month high of 72.16 against the US dollar on Wednesday. The home currency had closed at 72.66 against the greenback on Tuesday. Meanwhile, benchmark indexes the BSE Sensex and the NSE Nifty50 surged on easing macro concerns led by energy and financials. The Sensex surged nearly 185 points, or 0.5 percent, to settle at 35,329 at 9.08 am in pre-open trade. The Nifty was up by 52 points, or 0.50 percent, at 10,635.

    The rupee further appreciated to 72 against the US Dollar for the first time since September 21.

  • Here’s how Morgan Stanley rates JSPL, HSBC on Tata Steel, Aurobindo Pharma##Here’s how Morgan Stanley rates JSPL, HSBC on Tata Steel, Aurobindo Pharma


    Morgan Stanley on JSPL:
    OVERWEIGHT call, target at Rs 314/share.
    Beat driven by better than expected blended realization and lower costs.
    Volumes were in-line with our estimate.

    HSBC on Tata Steel: 
    Indian operations continued to shine more than offsetting disappointing EU performance. 
    Guidance to cut leverage by $1 billion over the next 12 months looks positive.
    Rising contribution from India operations should help stock rerate.
    Maintains BUY call with a target of Rs 890/share.

    HSBC on Aurobindo Pharma:
    Q2 US sales benefitted from volume growth. 
    Ertapenem sales-driven recovery seen in injectables. 
    US outlook continues to appear stable on strong ANDA pipeline.
    Continued momentum of US sales will be a key catalyst.
    BUY call, target cut to Rs 865 from Rs 880/share.

  • Here is the list of stocks that will be on radar today##Here is the list of stocks that will be on radar today

  • Here’s how Credit Suisse rates Apollo Tyres, Ashok Leyland, Aurobindo Pharma##Here’s how Credit Suisse rates Apollo Tyres, Ashok Leyland, Aurobindo Pharma

    Apollo Tyres:
    Maintains NEUTRAL, target cut to Rs 240 from Rs 300/share.
    Negative EBIT in Europe; India topline strong.
    Cut EBITDA estimate by 5-7 percent and EPS by 8-11 percent.
    Raw material pain at least for another quarter due to lag effect.
    Europe EBIT remains stressed; should improve seasonally.

    Ashok Leyland:
    Upgrades to NEUTRAL from UNDERPERFORM, target raised to Rs 118 from Rs 101/share.
    No significant impact from axle load norm changes.
    Increase FY19/FY20 estimates by 16 percent/23 percent.
    Export volumes struggling but have aggressive plans in medium term.
    Expect a strong pre-buy in FY20; scrappage could limit decline in FY21.

    Aurobindo Pharma:
    Maintains OUTPERFORM, target at Rs 840/share.
    Expect US sales to further increase on strong Q2FY19 base.
    Stay positive due to its reasonable valuation of 14x FY20e EPS. 
    Cut FY19-21 EPS estimate by 4-5 percent to factor in higher R&D. 
    Expect working capital cycle to ease/remain at around current levels.

    Varroc Engineering:
    Maintains OUTPERFORM, target cut to Rs 1,000 from Rs 1,200/share.
    Delivering on revenue, but margin disappoints again.
    Cut FY19-21 EPS estimates by 5-10 percent. 
    Continue to like company’s strong market share gain story. 

  • Here’s how Macquarie rates Zee Entertainment, Sun Pharma and Tata Steel##Here’s how Macquarie rates Zee Entertainment, Sun Pharma and Tata Steel


    Zee Entertainment:
    Deal will entail an investment of more than $1.2 billion.
    Expect any strategic partner to be a large, global one.
    Deal could provide an entry for a global tech company.
    This could help plug gaps with respect to the company’s media-tech prowess.
    It also raises concerns on promoters’ view on longevity of business model.
    Maintains OUTPERFORM with a target of Rs 556/share.

    Sun Pharma:
    Earnings adjusted for Modafinil settlement hit missed our and street estimates. 
    Management expressed confidence about a fairly positive showing in H2.
    Estimates for FY19-21 reflect improved US sales from specialty launches. 
    At 23.3x FY20 PER, upside is capped.
    Maintain NEUTRAL call with a target of Rs 585/share.

    Tata Steel:
    Strong operational Q2; margin headwinds ahead.
    Consolidated EBITDA 5 percent ahead of our estimate led by strong India margin.
    See Q2 India spreads at near-term peak.
    H2FY19 to see pressure from higher coal and recent correction prices.
    Key positive triggers in near-term are clarity on Bhushan Power bids. 
    See attractive risk-reward at 4.9x EV/EBITDA FY20e.
    OUTPERFORM rating, target at Rs 730/share.

  • Pramit Brahmbhatt of Veracity expects Rupee to trade in between 72-72.50/$##Pramit Brahmbhatt of Veracity expects Rupee to trade in between 72-72.50/$

  • Here’s how Citi rates Ashok Leyland, Sun Pharma, Zee, Apollo Tyres and others##Here’s how Citi rates Ashok Leyland, Sun Pharma, Zee, Apollo Tyres and others

    Ashok Leyland:
    SELL call, target cut to Rs 100 from Rs 105/share.
    Slight miss on Q2 results; outlook mixed.
    Cut EPS estimates by 6-10 percent over FY19-21.
    Stock is overpriced for where we are in the cycle.
    Expect volume growth to decelerate over next two quarters.
    Cut EBITDA estimate by 5-7.5 percent for FY19-21 to reflect cost pressures.

    Sun Pharma:
    NEUTRAL call, target cut to Rs 575 from Rs 600/share.
    Q2 miss led by lower India, US (ex-Taro) sales.
    Cut FY19/20/21 EPS estimates by 7 percent/5 percent/3 percent.
    Generics business appears to have bottomed out.

    Zee Entertainment:
    BUY call, target at Rs 550/share.
    Will keep a close eye on the possible deal/structures.
    Business itself is currently firing on all cylinders.
    Announcement of promoter divesting up to 50 percent looks positive.
    Induction of a new strategic global partner could benefit in long term.
    It could help Zee’s business to compete more effectively. 
    Divestment should address concerns about the promoter group leverage. 

    Apollo Tyres:
    BUY call, target cut to Rs 305 from Rs 315/share.
    Strong India business offsets seasonally weak EU.
    Consumer revenue estimate increased by 2 percent and earnings cut by 3-5 percent.
    Positive for stock if new promoter compensation proposal approved.

    JSPL:
    BUY call, target cut to Rs 333 from Rs 400/share.
    Strong ramp-up ahead; deleveraging to lead to equity value accretion.
    Cut P/BV multiple to 1x from 1.2x earlier.