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Topic :- Share Market Closing Note

Spurred by the governments mega plans to boost economy via recapitalisation of public sector banks and massive road building programme, benchmark equity indices Sensex and Nifty scaled fresh record closing highs on Wednesday. 

The 30-share BSE Sensex closed 435.16 points, or 1.33 per cent, up at 33,042.50, while the 50-share NSE Nifty index settled 87.65 points, or 0.86 per cent, up at 10,295.35. 

Wednesdays rally was majorly supported by select banking counters as 26 stocks in Nifty index settled in red with Indiabulls Housing Finance falling 5.49 per cent, followed by Bajaj FinanceBSE -5.43 % (down 5.16 per cent) and YES BankBSE -5.92 % (down 4.89 per cent). On the other hand, State Bank of IndiaBSE 27.58 % and ICICI BankBSE 14.69 % soared 27 per cent and 14.56 per cent, respectively. 

UltraTechBSE 6.02 % Cement, Larsen & Toubro and Axis BankBSE 4.61 % climbed 5.75 per cent, 5.33 per cent and 4.88 per cent, respectively. 

More than 70 stocks on the NSE hit their fresh 52-week highs in Wednesdays trade. The list includes stocks such as Bajaj Corporation, Birla CorporationBSE 0.76 %, EID ParryBSE 3.34 %, GAIL (India), KRBLBSE 1.07 %, GVK PowerBSE 4.99 %, NCCBSE 6.36 % Ltd and Punjab National BankBSE 46.20 %. 

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Topic :- Time:2.20 PM

Nifty spot is trading at 10298. If it manages to trade and sustain above 10305-10310 levels then expect some quick jump in the market and if it breaks and trade below 10270 level then some profit booking can follow in Nifty.

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Topic :- Time:2.05 PM

Just In:

UK GDP Results: 0.4% vs th 0.3% estimated before.

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Topic :- Time:1.30 PM

Just In:

Kotak Mahindra Bank posts 20% YoY rise in profit at Rs 1,440 crore; asset quality improves.

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Topic :- Time:1.10 PM

DLF Stock Trading View:

DLF share is trading at 177.75. If it manages to trade and sustain above 179 level then expect some quick upmove in it and if it breaks and trade below 176.80 level then some further decline can be seen in DLF counter. Overall DLF can act as dark horse and can shoot up any time in few trading sessions.

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Topic :- Time:12.45 PM

Tata Sons reports 73% drop in profit in FY17, revenue grows 23% to Rs 9,985 cr:

Tata Sons, the promoter of the Tata Group companies, filed its annual return with the Registrar of Companies for FY17 in which it has reported a 73 percent fall in net profit at Rs 824 crore, and a 23 percent growth in revenue at Rs 9,985 crore on a standalone basis, reports The Economic Times.

The consolidated revenue for the company rose 13 percent to Rs 1.73 lakh crore, but profit was down 20 percent to Rs 18,431 crore due to higher exception items, totalling Rs 6,773 crore.

The report said that the company made a provision of Rs 684 crore for doubtful recoveries of dues from former business partner C Sivasankaran.

The company said in its filing that it would pay NTT Docomo from the money deposited to the Delhi High Court immediately upon NTT Docomo providing appropriate withholding tax certificate from the tax authorities. However, the company did not respond to an email query sent by the newspaper.

Tata Sons also decided to move out of the loss-making telecom venture Tata Tele which has a debt of Rs 34,000 crore. Tata Sons derives revenue from royalty and dividend from group companies.

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Topic :- Time:12.10 PM

Nifty is trading flat only after initial run by PSU banks. Nifty spot if manages to trade and sustain above 10270-10280 levels then expect some quick upmove in the market and if it breaks and trade below 10250 level then some fall can be seen in the Nifty.

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Topic :- Time:11.30 AM

News Wrap Up:

1. Sensex up 300 pts, NIfty above 10,250; PSU Bank index up 20%

2. RCom may shut its wireless biz by Nov 30, employees put on notice

3. Cash ban, GST disruptions to cool Indias GDP growth

4. Flipkart wont be profitable ever: Ecomm pioneer

5. RBI fines Yes Bank Rs 6 cr, IDFC Bank Rs 2 cr

6. A forgotten Pakistani port is now the epicentre of Chinas Asia conquest plan

7. RCom nears record low on talk of closure of DTH business

8. HCL Tech second-quarter net profit rises 9.5%, beats estimates

9. GIP buys Equis Energy, which has 900 MW of assets in India, in $5 bn deal

10. Infosys trades firm post September-quarter earnings

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Topic :- Time:11.00 AM

After positive opening nifty is still trading with gains. Nifty spot if breaks and trade below 10200 level then some softness can be seen and above 10280 level some upmove can follow.

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Topic :- Nifty Opening Note

Indian Stock Market Trading View For 25 Oct, 2017:

Good stock specific movement is expected in the market. Gloabl cues to be eyed. 

Nifty spot if manages to trade and sustain above 10240 level then expect some further upmove in the market and if it breaks and trade below 10140-10120 levels then some decline can be witnessed in the market. Please note this is just opening view and should not be considered as the view for the whole day.

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The government's decision to infuse Rs 2.1 trillion of capital in public sector banks (PSBs) could improve the credit growth by up to 10 percentage point and also boost the GDP growth by up to 5 percentage point, said a report.

The government yesterday announced a capital infusion of Rs 2.11 lakh crore in state-run banks over a period of two years, which includes recapitalisation bonds, budgetary support and equity dilution.

It said that Rs 1.35 trillion will be financed by recapitalisation bonds, with the remaining Rs 0.76 trillion will be coming from the budget and raising funds from markets by reducing government equity.

According to the Goldman Sachs Research Report, every incremental Rs 100 billion of bank capital infusion by the government has the potential to increase credit and GDP growth by 1 percentage point (pp) and 0.5 percentage point (pp).

"By the same calculations, a Rs 1.05 trillion infusion into PSU banks over the next 12 months (half of the Rs 2.1 trillion announced) would lower the drag on bank credit growth by up to 10 pp and boost GDP growth by up to 5pp, assuming the banking system leverage ratio remains constant as it has over the past 8 years," the report said.

Even with some slippage in the leverage ratio, though, the bank recap will generate a powerful credit impulse, likely imparting a substantial boost to investment and activity growth over the coming year and creating upside risk to our current GDP growth forecasts for the coming years, it said.

Given the sheer magnitude of this recap package and the significant implied easing in credit conditions, as credit and investment growth rebound, the report expects a re-rating of growth expectations in the country in the coming quarters.

"This will likely be bullish for equities and the rupee in the medium term," it said.

The government also said it is committed to keeping the fiscal deficit under control but will reassess the 3.2 per cent fiscal deficit target for FY18 in December.

"While the near-term risks are clearly skewed towards a deterioration in the fiscal position, medium-term fiscal fundamentals could actually improve, should private sector growth and private corporate investment spending rebound meaningfully following the easing of credit conditions."

The current account deficit would likely increase but from a low level, it said.

The report said the measures announced by the government are likely bearish for short-term rates, as they make the RBI more likely to hike rates sooner than market expectations, should growth momentum improve substantially, reducing economy-wide slack, and core inflation inch higher.

"We currently forecast that the RBI will hike rates three times by the end of 2018, an outcome that is not fully priced in by the market," the report said.

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India's economy will likely grow at its slowest pace in four years this fiscal year, a Reuters poll showed, as a currency ban and the new goods and services tax (GST) have disrupted business activity and dampened consumer demand.

Asia's third-largest economy will grow at 6.7 percent in the fiscal year ending March 2018, the slowest since the new methodology of measuring gross domestic product (GDP) was introduced in the 2014-15 fiscal year, according to the latest poll of 30 economists.

The poll was taken on Oct. 12-24, closing just before India announced a $32.43 billion plan to recapitalise state banks, a bid to tackle a major drag on the economy.

While the latest poll's number for this year matches the International Monetary Fund's toned-down forecast - that was 7.2 percent earlier - it is a sharp decline from 7.3 percent the July Reuters poll showed.

But despite the broad and marked slowdown expected in economic activity, India's projected growth rate will be second to the world's fastest growing major economy - China - if predictions are met.

A majority of economists said the risk to their already lower outlook for Indian growth this fiscal year is skewed further to the downside as stressed corporate balance sheets prevent a recovery in private capital spending and mounting bad loans at Indian banks remain a burden.

All but three of 23 respondents who answered an extra question said the government had imposed too many sweeping changes for the economy in a short period of time, referring to demonetisation and the GST, and that has lowered growth expectations.

"Demonetisation was unnecessary and had a huge disruptive effect. Even before the economy could recover from that shock, came (the) GST," said Kunal Kundu, vice president and India economist at Societe Generale.

"More importantly, the government was not prepared adequately enough, thereby transmitting further shock to the slowing economy."

Prime Minister Narendra Modi's decision last November to scrap high-value old banknotes wiped out about 86 percent of currency in circulation virtually overnight in an economy which is largely cash-based.

That has hurt consumer spending, which powers more than half of the $2 trillion economy.

But just when some improvement in data raised hopes that the impact of the cash clampdown had been absorbed, confusion among businesses on pricing goods and services after the July 1 implementation of GST has impacted activity.

The economy grew at 5.7 percent annually in the April-June quarter, its lowest level in more than three years and well below expectations.

However, nearly three-fourths of 23 respondents who answered an extra question said India does not need a stimulus package and instead should focus on fiscal discipline which is vital for investment from outside the country to flow in.

"There is limited scope for any stimulus when the budget fiscal deficit projections will anyways be breached on account of revenue shortfall," said Abhishek Upadhyay, economist at ICICI Securities Primary Dealership.

Despite bleak growth expectations, the Reserve Bank of India is forecast to keep key policy rates on hold through mid-2019, focusing on anchoring inflation.

The latest Reuters poll predicted retail inflation to average 3.5 percent this fiscal year, unchanged from the July median but below the RBI's medium-term target of 4.0 percent.

Inflation was expected to average 4.5 percent in 2018-2019, compared to 4.3 percent in the previous poll.

"With inflation trending up directionally and RBI's insistence on 4 percent target on a durable basis, a convincing case for a rate cut appears less plausible," said Madhavi Arora, economist at Kotak Mahindra Bank.