Sensex, Nifty to crash at start

A crash at start and may have a cascading effect on the stock market in the initial hours. It doesn’t matter what the fundamentals or technical levels are; collateral damage is a given for the day. Support is seen for the Nifty around 7800 levels for now. Whether any follow up buying or cherry picking takes place after the initial fall remains to be seen.

Dhanteras today marks the commencement of Diwali festival but there are no fireworks as stocks may just see their market cap go down in flames. The verdict is out and the BJP has lost its face in the Bihar State Election. Nitish Kumar-led JD(U)'s grand alliance is all set to form the government in Bihar. The coming together of two backward class political heavyweights has proved to be a big victory for the non-BJP parties even as the BJP and its allies are left in a state of distress watching their popularity wane. An NDA victory would have dented opposition’s regular practice of stalling Parliament and at the same time would have given more legs to the reform agenda.  An NDA win would have strengthened its position in the Rajya Sabha in the time to come.  While Nitesh Kumar is still known for his development agenda, having Lalu in his camp as the single biggest party, will lead to a situation where the latter will extract his pound of flesh which may not augur well for the state. In short, for the time being, the verdict is seen as a big negative for the stock market in the short term.

The poll verdict is likely to see a knee-jerk reaction on the street. A crash at start and may have a cascading effect on the stock market in the initial hours. It doesn’t matter what the fundamentals or technical levels are; collateral damage is a given for the day. Support is seen for the Nifty around 7800 levels for now. Whether any follow up buying or cherry picking takes place after the initial fall remains to be seen. The market regulator and exchanges are fully on the guard and have stepped up surveillance to handle any wild swings that may take place on Monday, reports indicate. Among the results in focus are BPCL, Central Bank of India, Allahabad Bank, Man Industries and Indian Hotels.

Given the lack of positive triggers for now, the rest of 2015 and probably the months till Apr 2016, the market is likely to be volatile. In a few days, global factors and other events will take over. Investors should take advantage of any fall in the market to accumulate quality stocks.

Wipro has realigned its Global Media & Telecom (GMT) business following the exit of its CEO Ayan Mukerji, reports a business daily.  The GMT business will have a new structure, with its sub-vertical Communication Services carved out into a strategic business unit with Vice-President Anil Jain as its head, Wipro said in a statement. While Jain will report to Wipro COO Abidali Neemuchwala, the media vertical will be clubbed with retail, consumer goods, transportation and government verticals for better synergies, Wipro said.

Royal Enfield is looking to expand its product line-up by introducing two new models by 2017, which will be based on the two new engine platforms, Eicher Motors MD & CEO Siddhartha Lal said.  "The first model based on the new engine platform will be out next year. Another model will follow in 2017," Lal said.

Grasim Industries Ltd. plans to refinance Aditya Birla Chemicals' INR 1,200 crore loans and transfer them to its books once the merger is complete, reports a business daily.  It may be recalled that earlier this year, Grasim decided to merge with group company Aditya Birla Chemicals. “Refinancing is an ongoing thing...we as a company are not very leveraged; our debt-to-Ebitda (ratio) is around 1. Although, when Aditya Birla Chemicals gets merged, it will come with its own debt of around INR 1,200 crore. So, that time, something is needed to be done around debt refinancing,” Grasim CFO Sushil Agarwal has been quoted as saying.

The Government has reportedly decided to reduce the centrally sponsored schemes (CSS) to 27 from 72, resulting in the states getting a higher share from these schemes. Of the 27 CSS, the Centre would fully fund 10 and provide 60% of the funds for the remaining 17, reports a financial newspaper. The restructuring of the CSS is largely based on the recommendations of a Niti Aayog panel of chief ministers headed by Madhya Pradesh CM Shivraj Singh Chouhan.

Cairn Energy Plc is reportedly willing to suspend its appeal to International Court of Justice (ICJ) seeking appointment of an arbitrator on behalf of the Government of India to resolve the INR 10,247-crore tax dispute, provided an arbitral panel is put in place by November 11. Cairn will press the ICJ to name an arbitrator on behalf of the Indian Government, if New Delhi fails to name an arbitrator by November 11, reports a business daily.

Essar Steel has appointed ICICI Securities and SBI Capital Markets as advisers to help it sell stake and cut its debt burden of about INR 30,000 crore, according to various media reports. The company is looking for a foreign company, most likely Japanese, as a strategic investor, reports a national daily.

Tata Steel will reportedly sell its long products business in Europe by the end of the current financial year. The business manufactures plates, sections, wire rods and semi-finished steel for different markets at mills in Teesside and Scunthorpe in the UK.

Jaguar Land Rover (JLR) has reportedly prepared a cost-cutting plan worth 4.5-billion pounds to counter rising emissions costs and the slowdown in China. The initiative - code named as Leap 4.5 - will scrutinise almost every area of spending at JLR, according to a report in 'The Sunday Times'.

The Government is considering to bring kerosene under the direct benefit transfer (DBT), Petroleum Minister Dharmendra Pradhan said.

Shares of Sun Pharma Ltd will be in focus after the company reported net profit declined by 46% to Rs. 1,106. 7 crore for the quarter ended September 30, 2015 as compared to Rs. 2,050.2 crore  for the quarter ended September 30, 2014. The company’s total income has decreased by 12.2%  to Rs. 7,028.9 crore for the quarter under review from Rs. 8,008.4 crore for the quarter ended September 30, 2014.

Reserve Bank of India Governor Raghuram Rajan reportedly said that the financial inclusion in the country is set to make a quantum leap with the coming together of several initiatives such as the opening of bank accounts for the poor.

The Government has hiked excise duty on petrol by Rs.1.60 per litre and on diesel by 40 paisa a litre in a bid to raise additional revenue to meet budgetary targets.

The basic excise duty on unbranded petrol has been hiked from Rs.5.46 per litre to Rs.7.06 a litre, according to a CBEC notification.