Market HIGHLIGHTS: Nifty reclaims 11,900, Sensex ends 355 pts up ahead of US poll results; RIL, Infosys lead

The election results are unlikely on the election night and it could possibly take much longer for the final results to come out. The market initially opened with a lot of optimism but now it seems quite unclear how the results will pan out. Even in case of democrat Presidential win, the senate control could still be in the hands of republicans translating to a weaker democrat win. The emphatic stimulus that was expected post-elections will take more time. Markets in the short period could be jittery as election verdict could still swing either way. The election has turned out to be much tighter than anticipated with new challenges emerging: Naveen Kulkarni, Chief Investment Officer, Axis Securities

BSE Sensex ended 355 points or 0.88 per cent higher at 40,616, while the broader Nifty 50 index gained 95 points or 0.80 per cent to finish at 11,908

The fiscal second quarter results so far hint that the financial sector is cruising towards a faster-than-expected earnings recovery in India. Most leading private banks have reported collection efficiencies at 95%, in touching distance to the pre-coronavirus levels. Lenders in the microfinance sector and vehicle finance space too have reported collection efficiencies of nearly 90%. This points to a better recovery for a sector that was expected to see collections being marred by the pandemic aided slowdown post the moratorium phase. Bank Nifty has jumped over 1,500 points so far this week.

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A lack of clarity on the outcome of the US Presidential Election has created a lot of uncertainties. Global equity and currency market have reacted according to it. With the US Dollar gaining strength, the Indian rupee saw a decline, as it slipped towards the crucial 75/$ mark. The Indian rupee will continue to be in focus till clarity emerges on the US election outcome and the latest tranche of fiscal stimulus. In times of uncertainty, investors tend to rush towards the USD which is a safe haven. Back home, the Indian government is working on a stimulus package, but expect it to be smaller in size as the Indian government will look to limit its deficit: Nish Bhatt, Founder & CEO, Millwood Kane International - an investment consulting firm 

The U.S. dollar jumped and riskier currencies wilted on Wednesday as early results in the presidential election showed a tight race, surprising currency investors who had been betting on a decisive victory for Democrat Joe Biden. President Donald Trump won in the key battleground states of Florida, Ohio and Texas, dashing market hopes for a clear result. Investors waited to see whether Trump would retain the Rust Belt states — Michigan, Wisconsin and Pennsylvania — that sent him to the White House in 2016.

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The big risk to the currency market is the uncertainty over the new US President and the inconclusive election result. The Democrats are leading but republican are catching up. In such a scenario, traders are preferring to go against rupee. The USDINR spot is respecting the immediate resistance of 75, but the caution and volatility will keep the appreciation intact. For the coming sessions, we expect USDINR spot to trade in between 74-75.50: Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services

Dabur India shares gained nearly 3 per cent to trade at Rs 530 apiece on BSE, after gaining 5 per cent so far this week. Homegrown FMCG company reported a 19.62 per cent on-year increase in consolidated net profit in the July-September quarter. The company had posted a consolidated net profit of Rs 403.64 crore in the corresponding quarter of the preceding year.

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Looking at the numbers as we speak it is evident that the race is going to be much closer than predicted by most opinion polls. While the Democrats are in the lead not only in the presidential race but also in the house of common it is likely to be a very tight race and may go down to the wire. Also given the current circumstances due to the pandemic which is going to result in higher voting through postal ballot there could be some delay in the final outcome of the elections unless one of the candidates wins by a landslide. There is also the probability of the results being challenged in the US Supreme Court. Therefore at the current juncture the US elections are too close to call and may go down to the wire contrary to a democrat landslide predicted by most opinion polls: Jyoti Roy- DVP- Equity Strategist, Angel Broking Ltd

Though it must be said that Trump has fared significantly better in the polls versus what a majority of polls had predicted. There is absolutely no Blue Wave seen and America continues to be a society sharply divided on both socio-cultural and economic issues. An expectation of a flip in the Senate in favour of Democrats too looks unlikely at the current moment. But as they say, it isn't over till it's over: Ajay Bodke CEO-PMS Prabhudas Lilladher

Biden has refused to concede in his press conference earlier and has expressed firm hope that he is confident of victory when all votes cast are counted. Markets have given up all gains fairly rapidly in last 10 min fearing what it feared the most - A contested election with Trump claiming a fraud and stealing of a mandate by the Democrats. Legal challenges are likely in various States: Ajay Bodke CEO-PMS Prabhudas Lilladher

Trump has falsely claimed in a press conference concluded just now that "he has won the election" when millions are votes especially in many battleground states are yet to be counted. He has threatened to move the Supreme Court by 4 am ( EST) to ensure that counting of votes is stopped. Many legal experts are of the view that there is no such provision in the US Constitution for the Supreme Court to intervene at this juncture and direct stoppage of voting. Any grievance should be contested at various State levels and petitions can be moved there but even there stoppage of votes cast legally before the voting deadline looks tough. He is advocating stopping of counting in those States he fears his lead could narrow like Pennsylvania, Michigan, Ohio, North Carolina etc but is asking for counting to continue in States where he is trailing and hopes to narrow the lead like Arizona: Ajay Bodke CEO-PMS Prabhudas Lilladher

Domestic equity market benchmarks BSE Sensex and Nifty 50 slipped into the negative territory in the afternoon deals on Wednesday. The fall in the headline indices was witnessed after US President Donald Trump called the ongoing election a major fraud. Trump also said to approach US Supreme Court.

The mega initial public offering of Gland Pharma will open for subscription next week at a price of Rs 1,490-1,500 per share. Backed by Chinese firm Fosun Pharma, the company is looking to raise Rs 6,479 crore through the public issue which opens Monday, November 9 and closes on November 11. The IPO will be a mix of a fresh issue worth Rs 1,250 crore and an offer for sale (OFS) from existing shareholders, including Fosun Pharma which will consist of 34.8 million equity shares. Gland Pharma’s IPO will be India’s biggest ever public issue by a pharmaceutical firm.

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India’s services PMI (seasonally adjusted) rose above 50 in October, coming in at 54.1 (September: 49.8). The improvement in services activity comes amid a gradual reopening of the economy, with the services PMI hitting its highest level since February 2020. The narrowing gap between manufacturing and services PMIs also reflects the restrictions on services are being lifted, which should bring more balance to the economic recovery.

~ Barclays India

India’s festive season is known across the world for its sheer grandeur and cheer. For businesses, particularly those in the e-commerce logistics sector, it is the most important time of the year. While the Covid-19 pandemic created massive disruptions in the supply chain, businesses are gradually getting back on their feet after extended lockdowns and loss of business continuity.

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IT stocks were in focus today as Nifty IT index gained over 3.5 per cent on Wednesday amid US presidential election vote counting. As per the latest trends, Democratic candidate Joe Biden has bagged 223 electoral votes so far, while Republican candidate Donald Trump has won 174. The candidate that receives a majority of the 538 electoral votes, or at least 270 votes, will win the presidency. Analysts expect that medium-term technology demand will likely to remain buoyant in either scenario.

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Gland Pharma Ltd. and its shareholders are looking to raise as much as 64.5 billion rupees ($871 million) in what would be India’s biggest initial public offering by a pharmaceutical firm. The company and existing holders including Fosun Pharma Industrial Pte. are selling as many as 43.2 million shares in the offering, according to terms of the deal obtained by Bloomberg News. The shares are marketed at 1,490 rupees to 1,500 rupees each.

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Sensex and Nifty are trading with gains today as the United States tries to ascertain who will be the next President. However, experts have been advising investors to stay cautious as they expect volatility to inch higher during the day and possibly in the coming sessions. “If there is a situation where one party takes the house and the presidency goes to the other side, that could be negative for stock markets,” Vishal Wagh, Head of Research, Bonanza Portfolio told Financial Express Online. Trends so far suggest nail biting finish with many key states still too close to call.

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The year 2020 will go down in history as the year of uncertainty and volatility as the covid-19 pandemic outbreak led to business shutdowns and cessation of economic activity on a global scale. The socio-economic impact of the pandemic on people across the economic and social spectrum was unprecedented in terms of increasing livelihood crises and a drop in earnings. Moreover, on account of the worldwide lockdown and global travel restrictions, people were stuck in different countries and could not fly back home giving the concept of work from home a new dimension

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For Q2FY21, Prism Johnson sales de-grew by 5% YoY to ?1,326 crore. Consolidated Q2FY21 EBITDA (ex of insurance subsidiary, Raheja QBE general insurance) grew by ~85.8% to ?190 crore over Q2FY20 which was on account of reduction in fixed cost in all the three divisions of Cement, HRJ and RMC, increase in volumes and contribution margins in Cement and HRJ division. Cement Division’s Q2FY21 EBITDA per ton improved to ~? 1012 as against ~? 615 of Q2FY20. Net profit was ? 26.4 crore for the quarter against net loss of ?28.8 crore for Q2FY20. Overall, numbers were above our expectation in all the key parameters: Keshav Lahoti- Associate Equity Analyst, Angel Broking Ltd

Gold prices fell in India today ahead of the US presidential elections result and a volatile currency market. Besides, market participants are keeping close tabs on the Federal Open Market Committee (FOMC) which began its two-day meeting on Wednesday. On MCX, gold December futures were trading half a per cent or Rs 250 down at Rs 51,349 per 10 gram, while the silver December futures were ruling at Rs 61,684 per kg, down Rs 1,000 or 1.60 per cent. In the previous session, gold and silver futures ended in the positive territory with over one per cent gain.

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Sun Pharma’s share price shot up 4.7% on Wednesday morning to trade at Rs 508 per share after the company reported a strong jump in profits and sales. The sun was again shining bright on Sun Pharma in the July-September quarter as net profit surged 49% on-year basis to Rs 1,590 crore as sales improved in the quarter. Sales in the US were at $335 million, flat over last year but up by 19% compared to the first quarter, recovering to pre-coronavirus levels. The US sales account for about 30% of total consolidated sales. Shares of Sun Pharma are up 56% from their March lows.

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The Indian rupee opened at over 2-month low of 74.78 against US dollar, as compared to a previous close of 74.41 against the US dollar.

11950 is the level to watch out for; if we can get past this, the markets could attempt 12100-12200 as a target in the near term and 12300-12400 in the medium term. On the downside, 11600 is now good support for the market: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Indian Rupee is likely to give a gap up opening and may not be range bound due to high volatility. As the early polls suggested Biden in lead with a majority in both House of Representatives and Senate, the US Dow Jones rallied nearly 2% and the US Dollar plunged to 93.30 levels from nearly 94.00 because investors anticipated a bigger stimulus package. However, Trump is leading in the 6 swing states like Florida, Ohio, Pennsylvania etc that are important for Trump to win. Hence, the US election hinted at a close race with no clear winner yet in sight raising uncertainty over possible legal tussle and a delayed stimulus package. This kept equity markets on edge and rebound in dollar index close to 93.90 levels thereby keeping major peers and Asian currencies for a toss: Amit Pabari, managing director, CR Forex Advisors

We have turned optimistic on the company's prospects on account of multifold management efforts on (a) new launches, (b) increasing direct reach, (c) distribution technology upgrades, (d) dedicated focus on the Herbal segment, and (e) a cluster-based approach. Maintain Buy, with TP of INR605: Motilal Oswal Financial Services

COMEX gold has witnessed mixed trade near $1900/oz as market players position for the outcome of the US election. Price is currently lower as US dollar trades marginally higher. Amid other factors, gold is supported by expectations of additional stimulus measures and rising virus cases. ETF flows however show weaker investor interest. Gold may witness choppy trade as the market reacts to the outcome of the US election however hopes of additional stimulus measures may keep price supported: Ravindra Rao, VP- Head Commodity Research at Kotak Securities

IT giant Infosys shares surged over 4 per cent in the early deals to trade at R 1,108 apiece on BSE in Wednesday's session. The stock has more-than-doubled from its 52-week low of Rs 511 touched in March this year.

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PVR share price jumped 6.3 per cent to Rs 1,172.10 apiece on BSE after the company announced its second-quarter earnings for the current fiscal.

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Sun Pharma share price jumped over 3.5 per cent to trade at FRs 502.60 apiece on BSE, a day after the drug major reported 70.4 per cent on-year growth in consolidated profit in the July-September quarter.

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BSE Sensex gained 185 points to trade at 40,446, while the broader Nifty 50 index jumped 32 points to rule at 11,845 on Wednesday.

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The US appears to be on track to see over 160 million votes cast in the 2020 presidential election, a turnout rate of about 67 per cent, which is higher than the country has witnessed in more than a century, as President Donald Trump and his Democratic rival Joe Biden campaigned through the final day to get more voters to the polling booths.

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Indian markets could open flat following rangebound Asian markets today and positive US markets on Tuesday. The 1-2 day trend of the Nifty is now up and Nifty is likely to target the 11930 levels in the near term. Our 3-7 day targets are at 11975-12026 as the Nifty has broken out of a range and made a rounding bottom pattern on the daily chart. Our bullish bets are off if Nifty dives lower and closes below 50-day SMA at 11561. In this scenario, downside targets would be at 11347-11184: HDFC Securities

BSE Sensex fell 185 points to trade at 40,076, while the broader Nifty 50 index breached 11,700 on the downside to trade at 11,699 in the pre-opening session.

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Long build up in the Nifty and Bank Nifty Futures, Put buying in near the strike price suggests one should be cautious for the markets as traders may see major volatility in the market Therefore, our advise is to be bearish and use any rally to build fresh short positions with the
stoploss of 11850 levels. If Nifty trades above 11880 level then traders may create fresh long positions for higher targets: HDFC Securities

A total of 91 listed companies including State Bank of India, Lupin, HPCL, Adani Enterprises, Adani Green Energy, Apollo Tyres, Happiest Minds Technologies, JK Lakshmi Cement and United Spirits are scheduled to announce their July-September quarter earnings today.

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On Wednesday, we could see Indian market being volatile, ahead of the exit poll on prediction after the completion of voting in the US that would drive the sentiment of the market. Buying is advisable if Nifty comes back to 11750/11700 levels with a final stop loss at 11650. On the higher side, 11900/11950 would be the resistance zone, where one need to book profits on long positions: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

China has suspended the Shanghai leg of Ant Group Co.’s $35 billion offering, potentially derailing the world’s biggest initial public offering. The Shanghai stock exchange will suspend the listing amid changes in the regulatory environment, it said in a statement Tuesday without providing further details. The debut was expected for Thursday, the same day as the Hong Kong portion.

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The short term trend of Nifty has turned up, after forming a reversal type pattern at 11550 levels. One may expect further upside in the coming session and Nifty could test the next upside resistance of 11900-11950 in the next couple of sessions. Immediate support is placed at 11740 levels: Nagaraj Shetti, Technical Research Analyst, HDFC Securities