Thank you, readers! That's all from CNBC-TV18.com's live market coverage on October 19. Stay tuned for other updates on our website: CNBCTV18.com.
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HUL a great stock, great investment: Mehraboon J Irani
Market expert Mehraboon J Irani is positive on HUL shares. 'At around Rs 2,800, I had mentioned very clearly that this is not the price which HUL should be quoting at because I felt it was a little bit expensive. At around Rs 2,500-2,550, I don’t have any reservations. I feel that HUL is a great stock, a great investment. At Rs 2,500-2,550, I am quite sure institutional buying will come back into the counter and the stock should not be lying at Rs 2,500 for long. That is my personal feeling.
Speaking on ITC, he said he had been very critical of the stock for the last 3-4 years but it is possibly one of the most undervalued stocks in the market. "The reason is very simple: it is a great company, well-managed -- no doubt about it. But when you have so many businesses under the same umbrella, this is not something which the big investors like. So if and when the management exclusively comes forward and says that we are planning to put it into 3-4 different compartments or different companies, I promise you, this stock should be quoting at least 50 percent higher if not more. I don’t see any downside risk and if people look at deep value and look at it from a longer-term angle, I think Rs 250-255 is a great price to buy into ITC for a patient investor for the time being. As and when the stock moves with some concrete things coming in from the management side, the stock should fly," he said.
See 20% upside in L&T Infotech in next one year: Mehraboon J Irani
Market expert Mehraboon J Irani told CNBC-TV18 L&T Infotech is only for people who are looking at a year down the line. He sees 20 percent upside in the stock from the current levels in the next one year. "I believe there will be positive surprises coming from this company going ahead. The correction in the stock price can definitely come after the sharp run up," he added.
"There has been a margin surprise in midcap IT companies. It is a big positive surprise, be it Mindtree or L&T Infotech. Look at the way the valuations of Tata Elxsi are turning out; people are expecting great numbers. The stocks have run up sharply. For L&T Infotech, the going is good, the management is very clear that in the next three years also they don’t see too much of a problem as far as traction of orders goes across many segments. The headcount also is quite impressive, the revenue growth is superb and the margins have gone up. Do I buy the stock now or should I wait for possibly a pullback? My answer is very simple, if you are ready for 5-8 percent correction in the stock price, it should be trading higher three years down the line. It is a great thumbs up for me," he said.
Apollo Hospital ready for a Rs 1,000 upmove: Sushil Kedia
Sushil Kedia, Founder of Kedianomics, told CNBC-TV18 he believes Apollo Hospital is again ready for a Rs 1,000 upmove despite all the correction. "TCS has made a bear trap and is good for a new high again. MFSL is a good buy at current levels for again going into a new high. IndiGo, IGL and MGL are some of our long trades,” he said.
Prefer NTPC, CESC to Tata Power among power generators: Anand Tandon
Market expert Anand Tandon said in an interview to CNBC-TV18 that Tata Power has one of the weakest balance sheets given its debt levels. "So if you are looking at generation companies, I would still argue NTPC is cheaper, perhaps even Calcutta Electrics is still reasonably priced compared to some of the bigger ones. The only good thing about Tata Power is that it has a large renewables portfolio. Renewables, while may be in favour, are going at lower and lower yields in terms of what they are able to get and given that you are not seeing a commensurate drawdown in the prices of the solar panels or any of the components that go into it, you are working on very thin pricing in terms of the interest rates," he said.
"Any change there and that can get you into trouble. Currently, the market seems to like it and that is where it is. So if you are looking at fresh investments, I won’t be looking at renewables at this level," Tandon added.
Market At Close | Midcap index records biggest one-day fall in last 6 months
Here are highlights of the October 19 session:
--Tech Mahindra, L&T, Infosys top Nifty50 gainers; ITC, Tata Motors, Eicher Motors top laggards
--Nifty Bank ends 144 points lower at 39,540, slips 471 points from record high
--Midcap index declines 714 points to 32,171
--ITC falls 6%; government forms panel for tobacco taxation policy
--HUL falls 4% after company reports below-than-expected volume growth
--IT stocks keep losses for Nifty in check; Tech Mahindra, Infosys, HCL Tech gain
--Strong L&T Infotech earnings lift midcap IT stocks; L&T Tech, Mphasis up 6% each
--Credit Suisse's positive views on capital goods lead gain in L&T, Siemens
--IEX closes off highs but still 6% higher; board to mull bonus issue
--Tata Power, IRCTC, Union Bank, BHEL, India Cements top midcap losers
--Market breadth firmly in favour of bears; advance-decline ratio at 1:4
Closing Bell | Sensex falls 50 points, Nifty at 18,419
The Sensex index ended 49.5 points or 0.1 percent lower at 61,716.1 and the broader Nifty50 benchmark declined 58.3 points or 0.3 percent to settle at 18,418.8. Losses in auto, FMCG, metal and PSU banking shares pulled the market lower, though gains in IT stocks provided some support.
Both indices put an end to a seven-day winning streak.
CNBC-TV18 Exclusive | Sources say NTPC may buy 7-10% stake in Power Exchange (PXIL)
NTPC may buy a 7-10 percent stake in Power Exhange of India (PXIL), sources told CNBC-TV18.
NTPC did not respond to CNBC-TV18’s query on the news.
NSE was looking to sell PXIL in 2018. PXIL is promoted by NSE and NCDEX.
ITC declines 5%, VST Industries 3%; Godfrey Phillips gains; why cigarette stocks are in focus today
ITC shares dropped nearly five percent after the government formed a committee to review the taxation policy for tobacco products. It will develop a comprehensive tax policy on the products from the point of view of public health. The panel will also analyse the existing tax structure for all forms of tobacco and work on a blueprint for tax policy. (Read more on cigarette stocks here)
Hindustan Unilever Q2 Results | Net profit at Rs 2,187 crore, meets Street estimates
FMCG major HUL reported a net profit of Rs 2,187 crore for the quarter ended September 30, meeting Street estimates. Hindustan Unilever reported revenue of Rs 12,724 crore for the second quarter of the current financial year.
Analysts in a CNBC-TV18 poll had predicted the company's profit at Rs 2,175 crore over revenue of Rs 12,570 crore.
Commodity rise might continue through year-end: Rohit Srivastava
Rohit Srivastava, Founder and Strategist of Indiacharts.com, believes commodity price increases might continue going forward, "maybe into the year-end".
"My sense is the metal sector continues to outperform not only aluminium and copper but possibly participation even from steel and the rest of the segments within the sector as well. It should become more of a broad-based move and might even continue to do so irrespective of what Nifty is doing," he said. There has been a good move in leaders such as Nalco, Hindalco and Vedanta because of aluminium prices hitting 52-week highs last month, he said. "The good news, though in the last few days is that the rally in commodity prices became a little more broad-based. So you started to get copper to participate because copper was the strongest last year and then it actually went into a long consolidation mode for the last 4-5 months, and was not really participating in the move," he said.
"So the dollar index having rolled over I think over the last 3-4 days gives me a sense that possibly the longer-term dollar bear market has resumed," he said.