The event line up of US elections in early November & the Fed rate outlook seems to be getting mostly priced in as markets discount the uncertainty.
The major concern of bond yields rising in the US may still be the only imponderable market will have to grapple with going forward. Select outperformance in emerging markets continues to be the theme of 2016 with Ibovespa the Brazilian stock index hitting fresh new 52 week highs.
Nifty broke 8550 with adventurous shorts forcing new recent lows & hitting sentiment in an oversold market. However given the recent improvement in macro's this sell off could be the chance most investors who missed the summer rally to buy stocks. Big corporate deleveraging, low inflation, revival in capital expansion & bond yields at the lowest in 7 years coupled with stable rupee all add up to Indian economy in top shape.
With global uncertainty now seemingly getting mostly priced in we expect November to see Nifty heading back to recent highs after the earnings & US elections play out.
On the political front, the GST council is slated to begin today. RBI minutes of monetary policy meet will be released today.
Wall Street closed modestly lower on Monday. The Dow Jones industrial average fell 51.98 points, or 0.29% to 18,086.4, the S&P 500 lost 6.48 points, or 0.3% to 2,126.5 and the Nasdaq Composite dropped 14.34 points, or 0.27% to 5,199.82.
In forex markets, major currencies were confined in broad trading ranges on the back of soggy US data and the absence of fresh triggers. Gold price rose, partly lifted by steady flows into exchange-traded funds and a dip in the dollar after touching seven-month highs. Federal Reserve Vice Chairman Stanley Fischer said weak productivity, aging population and slow foreign economic growth are holding back interest rates. US industrial output meanwhile rose marginally in September. Oil prices remain at higher levels.
Among other stocks to watch:
Ashok Leyland Ltd: Ashok Leyland unveiled its Circuit series electric bus, the country’s first such indigenously made vehicle. Designed and engineered in India, it’s in line with the company’s vision for the future of mass mobility.
HDFC: HDFC Life has reported 12% increase in net profit at Rs 464 crore during the first half of 2016-17 financial year.
UltraTech Cement Ltd: UltraTech Cement said its net profit in the quarter ended 30 September rose 25.27% from a year ago because of higher other income.
Havells India: The company will announce its Q2 numbers today.
Zensar Technologies: The consolidated net revenue for the quarter grew by 2% QoQ to Rs. 772 cr against Rs 757 crore in the previous quarter. The consolidated net profit declined by 2.5% QoQ to Rs 74.5 cr against Rs 76.5 crore of last quarter due to fall in other income.
Aarti Industries: The company informed BSE that the Board of Directors approved the buyback up to 12,00,000 fully paid-up equity shares of face value of Rs 5 representing up to 1.44% of the total number of Equity Shares of the Company at a price of Rs 800.
Axis Bank: Axis Bank has cut the marginal cost of fund based lending rate by 5 basis points across all tenors, effective from Tuesday.
Lakshmi Vilas Bank: The bank reported a 44.6% YoY surge in profit after tax at Rs 64.8 crore for the quarter ended September 30.
Future Consumer Enterprise Ltd: Future Consumer Enterprise Ltd, Future Group’s consumer packaged goods unit, plans to launch a new brand, category or product every two weeks as it aims to have its own labels account for 70% of the products sold in group retail chains such as Big Bazaar and Easyday.
Mastek: The company will announce its Q2 numbers today.
Alankit: The stock will be in focus, it will be the cut-off date for interested investors to avail themselves the benefit of its proposed bonus share issue, as per media report.
Shriram EPC: The company bagged a Rs 61 crore contract for a water supply scheme in Bengaluru. The company has informed the BSE, that it has bagged the contract for a water supply scheme to Robertsonpet (KGF) City under the Centre's Atal Mission for Rejuvenation and Urban Transformation scheme.
Indian Hume Pipe Company: Indian Hume Pipe Company Ltd has informed BSE that the Board of Directors will consider the proposal for issue of bonus shares by capitalization of free reserves at their meeting to be held on October 26.
United Spirits: United Spirits appointed to V K Viswanathan as an Additional Director of the company in the capacity of independent director.
Jet Airways: Jet Airways is set to introduce wide-body services on the busiest domestic routes in a move that will significantly enhance connectivity.
Results: Havells India, Mastek, Can Fin Homes,Hatsun Agro Product, Rasoi, Linear Industries, Saven Technologies, Apoorva Leasing Finance and Investment Company, Clutch Auto, Greenlam Industries, Panasonic Carbon India.
Global Data: AUD New Motor Vehicle Sales (MoM) (Sep), AUD New Motor Vehicle Sales (YoY) (Sep), CNY M2 Money Supply (YoY) (Sep), CNY New Loans (Sep), GBP Retail Price Index (MoM) (Sep),GBP Retail Price Index (YoY) (Sep),GBP DCLG House Price Index (YoY) (Aug), GBP Producer Price Index - Output (MoM) n.s.a (Sep), GBP PPI Core Output (MoM) n.s.a (Sep) ,GBP PPI Core Output (YoY) n.s.a (Sep), GBP Producer Price Index - Input (YoY) n.s.a (Sep), GBP Producer Price Index - Input (MoM) n.s.a (Sep), GBP Core Consumer Price Index (YoY) (Sep), EUR 9-Month Letras Auction,USD Consumer Price Index Core s.a (Sep),USD Consumer Price Index Ex Food & Energy (MoM) (Sep), USD Consumer Price Index (YoY) (Sep), USD Consumer Price Index Ex Food & Energy (YoY) (Sep), CAD Manufacturing Shipments (MoM) (Aug), USD Redbook index (MoM) (Oct 14), USD Redbook index (YoY) (Oct 14), USD NAHB Housing Market Index (Oct), NZD GDT Price Index, USD 4-Week Bill Auction, USD Total Net TIC Flows (Aug),USD Net Long-Term TIC Flows (Aug), USD API Weekly Crude Oil Stock
Trends in FII flows: The FIIs were net sellers of Rs 4.56 bn the cash segment on Monday, while the domestic institutional investors (DIIs) were the net buyers of Rs 2.35 bn, as per the provisional figures released by the NSE.
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