Markets: Sensex, Nifty choppy in early trade;

Bharti Airtel zooms 10%. ICICI Bank down 0.7%

India’s economic growth likely to pick up soon, says Morgan Stanley’s Jonathan Garner.

Indian benchmark equity indices opened higher on Wednesday even as global shares slipped amid concerns about rising covid-19 infections in the US, Europe and uncertainty over next week’s US elections

After a quite depressed business and economic environment, India could be looking at a pickup in growth soon, believes Jonathan Garner, chief – Asia and Emerging Market equity strategist at Morgan Stanley. According to Garner, having some cyclicals in the portfolio would be advisable.

“We could be looking at a pickup in growth in India and therefore having some cyclicals in the portfolio would make some sense including industrial cyclicals and to some extent, consumer cyclicals and that’s different from what we are seeing in other emerging markets at the moment,” said Garner in an interview with CNBC-TV18.

Garner is slightly ‘overweight’ on India and thinks the market can outperform the other emerging markets.

Dow, S&P 500 end lower on disappointing earnings

Stocks on Wall Street closed little changed on Tuesday, with the Dow and S&P 500 slipping on disappointing earnings and little hope for a US coronavirus stimulus before Election Day, though the Nasdaq rose ahead of big technology company results.

The Dow Jones Industrial Average fell 222.19 points, or 0.8%, to 27,463.19 and the S&P 500 lost 10.29 points, or 0.30%, to 3,390.68. The Nasdaq Composite added 72.41 points, or 0.64%, to 11,431.35.

Asian shares sag on coronavirus, US election worries

Global shares slipped on Wednesday as coronavirus infections grew at an alarming pace in the United States and Europe, while uncertainty over next week’s US elections added to a “risk off” tone.

Singapore’s SGX Nifty was little changed. Japan’s Nikkei fell 0.3%.

China’s Shanghai Composite dropped 0.17%, while Hong Kong’s Hang Seng declined 0.3%. Australia’s ASX 200 was up 0.26%.South Korea’s KOSPI was down 0.13%.

Market opening

Indian benchmark equity indices opened higher on Wednesday even as global shares slipped amid concerns about rising covid-19 infections in the US, Europe and uncertainty over next week’s US elections.

Sensex opened at 40,664.35 up 142.25 points or 0.35%, while Nifty advanced 33.20 points or 0.28% to open at 11,922.60.

Bharti Airtel, rising over 9%, was the top Sensex gainer followed by Infosys, TCS, Bajaj Finserv and HCL Tech. Kotak Bank, Power Grid, Nestle and HDFC among others opened in the red.

Market outlook

“The Index is still stuck in a range between 11650 and 12050. While choppy markets can test a trader’s patience, one must exercise caution and avoid trading in rangebound markets. If we can get past 12050, the Nifty can achieve 12200-12300. If it breaks 11650, we could drop to 11400-11450.

Stocks to Watch

ICICI Bank, Bharti Airtel, Hero MotoCorp, Tata Motors and Vedanta are among the top ten stocks that may be in news in today’s trade.

ICICI Bank down 0.7%

ICICI Bank on Tuesday said the US Securities and Exchange Commission (SEC) does not intend to take any enforcement action against the lender related to its investigation into the bank’s loan impairment provisions under US generally accepted accounting principles (GAAP).

“The bank has, via its legal counsel, received a communication from the US SEC that they have concluded their investigation into the bank’s loan impairment provisions under US GAAP, and that the SEC does not intend to take any enforcement action against the bank,” it said in a regulatory filing.

Brokerages on Bharti Airtel: Bharti Airtel zooms 8%

Overall, Company reported better numbers than street expectations.

Mobile ARPU improved significantly by 26.5% YoY to ₹162 due to tariff hikes and increase in data usage. We are bullish on the Bharti Airtel considering that industry dynamics are looking favorable, it is expected to gain revenue market share and stock has corrected ~30% from its high which provides valuation comfort.

Bharti Airtel zooms 8%

The country’s second largest telecom operator reported its highest-ever quarterly consolidated revenue on the back of a rise in data usage and higher realisations, helping it narrow losses in the July-September period. Consolidated revenue rose 22 % to ₹25,785 crore in the September quarter while net loss narrowed to ₹763 crore.

Airtel’s losses were significantly lower than the year-ago period when it stood at ₹23,045 crore after the company had made provisions of ₹28,450 crore in the immediate aftermath of the Supreme Court ruling on statutory dues.

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