Sensex ends 173 pts lower, Nifty cracks below 11,700 on US rout; HDFC twins drag13 min read . Updated: 29 Oct 2020, 03:40 PM IST
- Indian stocks ended lower in choppy session on Thursday as weak global cues stemming from spiking covid-19 cases worldwide and uncertainty over the US presidential election eclipsed optimism from domestic earnings reports
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Indian stocks ended lower in choppy session on Thursday as weak global cues stemming from spiking covid-19 cases worldwide and uncertainty over the US presidential election eclipsed optimism from domestic earnings reports.
After swinging between gains of 0.22% and losses of 1%, benchmark Sensex ended at 39,749.85, down 172.61 points 0.43%. Similarly, Nifty settled 58.80 points or 0.5% lower at 11,670.
Asian Paints, closing nearly 3% higher, was the top Sensex gainer followed by Ultratech Cement, HCL Tech, Kotak Bank and ICICI Bank. L&T, closong over 5% lower, was the top laggard followed by Titan, ONGC, Axis Bank and HUL. Of 30 Sensex shares, 21 closed in the red.
Geojit Financial Services puts 'buy' on TechM with a target price of ₹923
"In Q2FY21, revenue rose 2.9% QoQ (+3.3% YoY), owing to recovery in demand. In USD terms, on constant currency (CC) basis, revenue came in as mixed bag +2.9%/-3.0% on QoQ/YoY. The improved demand/supply scenario, margin expansion and increase in deal wins should support the company’s steady recovery. Hence, we retain our BUY rating on the stock with a revised TP of Rs. 923 on 17x FY22E adj. EPS," the brokerage said.
Cholamandalam Investment and Finance up 2.86%
Cholamandalam Investment and Finance Company's Q2FY21 consolidate net profit stood at ₹434.64 crore, up 41% from ₹306.94 crore in Q2FY20.
Bank of Baroda up naerly 3%
Public sector lender Bank of Baroda on Thursday posted a net profit of ₹1,679 crore for the quarter ended on 30 September. Net interest income during the quarter grew by 6.8% to ₹7,508 crore. The consolidated net profit stood at ₹1,771 crore in the September quarter under review.
Hero MotoCorp's Navratri retail sales nearly on a par with last year's level
Hero MotoCorp Ltd, India's largest two-wheeler manufacturer, expects the current momentum in vehicle sales to sustain beyond the festival season unless a rise in covid-19 cases leads to another round of lockdowns. Retail sales of its motorcycles and scooters during the ten-day Navratri festival was at 96% of last year’s level, with the management optimistic about Diwali.
Since the easing of lockdown curbs in May, Hero MotoCorp has seen a steady rise in demand for its entry level motorcycles in rural and semi-urban markets, a result of good monsoon, a robust harvest, increased government subsidies and a shift towards personal mobility. (Full report)
Top laggards on Nifty Metal
Yes Securities puts 'buy' on RBL Bank with a target price of ₹230
"Capping of potential losses in the high-risk businesses of Cards and MFIs, improvement in rating profile and less vulnerability of the corporate portfolio and impressive handle over cost leads us to upgrade earnings estimates (10-13% for FY21/22) and rating (from ADD to BUY) on the stock. With normalization of credit cost in key product lines, we expect RoA to bounce back sharply to 1.3%. The in-process capital raise will bolster CET-1 to 17.5%, thus strengthening the balance sheet and positioning the bank well to pursue growth in ensuing quarters. Overall, we believe that Q2 FY21 performance and commentary improves the visibility of 1%+ RoA delivery in FY22 and this should uplift valuation," the brokerage said.
Motilal Oswal maintains 'buy' on Ceat Ltd
"Good demand recovery, new capacities ramping up, largely stable RM cost and cost-cutting measures should drive steady performance. This coupled with lower capex intensity would drive balance sheet deleverage. Valuations at 13.2x/11.8x FY21/22E consol. EPS does not fully capture the benefit of substantial capacity addition. Maintain Buy with TP of INR1,317," the brokerage said.
Angel Broking on Axis Bank
"Axis Bank reported above estimate numbers for Q2FY21, CASA, NII & NIM improved however, weak Loan growth and increase in watch list are a concern. Loan Book grew 10.5% YoY and NII grew at 20% YoY. Pre Provisioning profit increased by 16% led by healthy growth in NII and controlled opex. Provision jumped 30% YoY," said Jaikishan Parmar, senior equity research analyst, Angel Broking.
"On the liability front, SA deposits grew 12% YoY and helped by strong CA growth of 27% YoY, CASA ratio improved 320bps to 44.2% sequentially.
NNPL% remained low at 1%, 30+ overdue loan was contained at 2.3% and collection efficiency improved to 94/95% in Sep-Oct-20. BB& Below book and potential restructuring from wholesale loan book is 8.6% which is 3.1% of the overall book. Management expects Rs.2500cr worth of loan book gets restructured from a retail book. Bank carries contingent provision of Rs.10,800cr. Axis Bank core banking business trading at 1.4x of FY22E Book value. Which we believe is reasonable considering the improvement in core profitability and healthy capital to grow loan book," he added.
Rupee slumps 23 paise to close at 74.10 against US dollar.
Maruti Suzuki reports higher profit in September quarter
September quarter profit stood at ₹13.72 billion versus ₹13.59 billion year ago. Total revenue from operations stood at ₹187.45 billion versus ₹169.85 billion in same quarter of the previous fiscal. In Q2, performance improved on back of some demand recovery and gradual improvement in supply conditions.
Gold demand in India recovers in July-September
Led by covid-related disruptions, bleak consumer sentiment, and high prices amid volatility, demand for gold remained under pressure in the three months ended September even as it rose sequentially.
According to data from the World Gold Council, India’s demand for gold fell 30% year-on-year to 86.6 tonnes during July-September but was way higher than the 64 tonnes in April-June, which was a 70% drop year-on-year. (Full report)
NBFCs need to follow prudential measures to ward off risks, monitor lending: CEA
Non-banking financial companies (NBFCs) need to follow prudential measures to ensure that risks do not mount and be vigilant about the quality of lending in these difficult times, Chief Economic Adviser K V Subramanian said on Thursday.
He suggested that the use of technology, especially data analytics, Artificial Intelligence (AI) and machine learning can help improve the quality of assets.
Speaking at an event organised by industry body FICCI, he said NBFCs need to be careful about rollover risk or the asset liability mismatch and interconnected risk.
"While regulators are mandated to monitor these things, at an individual level every NBFCs need to monitor its rollover risk and interconnected risk as well because in times like these prudential measures must be taken by each NBFCs to ensure that risks do not mount," he said.
HSIL up 5%
Glass packaging producer HSIL on Wednesday said it will invest ₹320 crore to set up a new speciality glass manufacturing facility in Telangana and raise production capacity of its plastic business facility.
HSIL would invest ₹220 crores in AGI Glaspac to manufacture specialty glass and the greenfield (new) facility will be operational by the end of September 2022.
Besides, it will invest ₹100 crore in their plastic pipes and fittings solution business to increase the production capacity at the Sangareddy, Telangana, plant.
CG Power gains 5%, hits upper circuit
The company posted a consolidated net profit of ₹109.37 crore for the September 2020 quarter. CG Power and Industrial Solutions had suffered a net loss of ₹1,595.21 crore in the corresponding period of the previous financial year.
Sensex swings between gains and losses
Central banks dumping gold could make pandemic unfavourable for the yellow metal
For the first time in a decade, global central banks have turned from net buyers of gold to sellers of the precious metal The latest quarterly demand trend report by the World Gold Council (WGC) showed that net sales by central banks stood at 12 tonnes in the September quarter. This compares with purchases of 141.9 tonnes in the same quarter a year earlier. (Full report)
Yes Bank down 1.2%
The nominee director of Yes Bank Swaminathan Janakiraman, appointed by State Bank of India, has resigned with effect from 28 October 2020. In his letter, Janakiraman, has conveyed that State Bank of India will shortly nominate a replacement in his place.
BSE MidCap down 0.16%; Crisil, Adani Green top gainers
Pidilite Industries up 4%
Shares of Pidilite Industries rose 4.71% after the company signed a definitive agreement with Huntsman Group (USA) for acquiring a 100% stake in its India subsidiary Huntsman Advanced Materials Solutions (HAMSPL), for ₹2,100 crore.
After a negative start, benchmark equity indices recouped early losses and inched higher during the afternoon trade led by gains in RIL, Kotak Bank and ICICI Bank. At 12:27pm, Sensex was at 39,965.85, up 43.39 points or 0.11%, while Nifty was flat at 11,728.05.
IndusInd Bank first bank to go live on RBI’s 'Account Aggregator Framework'
IndusInd Bank has announced that it has gone live as a ‘Financial Information Provider’ (FIP) under the new ‘Account Aggregator Framework’ of the Reserve Bank of India (RBI), making it the first bank in the country to do so. With this, customers can now avail a host of benefits such as viewing statements of their accounts, track deposits, plan investments (such as shares, mutual funds, Insurance, EPF, PPF), avail credit cards, etc. on a single window, thereby empowering them to take informed decisions pertaining to their finances.
Sensex recoups early losses
MCX declines 3.5%
Multi Commodity Exchange of India (MCX) reported 18% decline in net profit to ₹58.55 crore during the second quarter ended 30 September. MCX had posted a net profit of ₹71.75 crore during the corresponding quarter last fiscal.
Pidilite to acquire Huntsman Group's Indian subsidiary for ₹2,100 crore
Pidilite Industries -- the manufacturer of the popular Fevicol brand of adhesives -- has signed a definitive agreement to acquire the US-based Huntsman Group's Indian subsidiary for ₹2,100 crore.
"The Board of Pidilite Industries Limited at its meeting held on 28th October, 2020 approved a definitive agreement with Huntsman Group (USA) for acquiring 100% stake in one of their subsidiaries in India namely, Huntsman Advanced Materials Solutions Private Limited (HAMSPL)," the company said in a regulatory filing.
Sensex off day's low, recoups some of the losses
Indian shares traded lower on Thursday, ahead of the expiry of October derivative contracts. Weak global sentiment due to surging coronavirus cases and uncertainty over the US presidential election also weighed on investor sentiment.
After hitting an intraday low of 39,524.25, Sensex recouped some of the losses. At 11:25am the 30-share barometer was at 39,813.17, down 109.29 points or 0.27%. Similarly, Nifty was 43.05 points or 0.37% down at 11,686.55.
Hero Motocorp’s Q2 results fine but festival sales critical to stock fortunes
Two-wheelers have been chugging along in the second quarter with results showing that festival season pre-stocking has helped. However, post the good pent-up demand any moderation in sales could impact revenue growth. So, it’s no surprise that the Hero MotoCorp stock has been flat in early trade on Thursday despite its notable Q2 numbers. (Full report)
L&T drops 4%
Engineering and construction giant Larsen & Toubro (L&T) posted a 45% decline in consolidated net profit to ₹1,410.29 crore for the quarter ended September, hit by the covid-19 pandemic. The company had clocked a net profit of ₹2,551.67 crore in the year-ago period.
Wipro down 0.5%
IT services firm Wipro has signed a definitive agreement to acquire Encore Theme Technologies - a specialist in providing SaaS and Cloud solutions in financial services - for up to ₹95 crore.
HAL, Tech Mahindra sign ₹400 crore contract
Hindustan Aeronautics Limited and Tech Mahindra have signed a contract worth ₹400 crore recently for implementation of Enterprise Resource Planning (ERP) to support HAL’s ‘Project Parivartan’. The ‘Project Parivartan’ is a comprehensive business transformation exercise initiated by HAL through technology enhancement and centralized ERP, says Mr. R Madhavan, CMD, HAL.
Maruti Suzuki down nearly 1%
Maruti Suzuki India Ltd—the country's largest passenger vehicle manufacturer—is expected to post strong recovery in net profit and revenue for the September quarter on the back of sharp recovery in sales of hatchbacks owing to faster recovery in rural and semi-urban markets and shift in customer preference towards personal mobility to avoid the covid-19 infection.
According to analyst estimates compiled by Bloomberg, the company is expected to report a net profit of Rs1,519.50 crore (16 analysts) and revenue from operations of Rs19,131.7 crore (17 analysts). (Full report)
Infosys down 0.5%
IT services firm has completed the acquisition of Blue Acorn iCi. Infosys had, earlier this month, announced inking a pact to acquire Blue Acorn iCi - a digital customer experience, commerce and analytics services provider - for up to USD 125 million (about ₹915 crore).
Rupee depreciates 18 paise, slips below 74/USD level in early trade.
RBL Bank up 0.7%
Private sector lender RBL Bank reported a 165% jump in its September quarter net profit to ₹144 crore. The lender also said it has received the Reserve Bank of India's approval to sell up to 9.9% stake to Baring Asia entity Maple through preferential allotment of shares.
"We broke the support of 11650 upon opening itself. Since we opened with a gap down, I would study the markets for the next couple of hours to see if the Nifty sustains these levels or goes back above 11650.Traders can then look at initiating shorts below 11650 for a target of 11450. The upside is capped at the resistance level of 11900," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Axis Bank up nearly 2%
Private sector lender reported its September quarter net at ₹1,849 crore at a consolidated level against a loss of ₹18 crore in the year-ago period despite setting aside a high quantum of money for potential reverses in loans. On a standalone level, Axis Bank had a post-tax net of ₹1,682.67 crore as against a loss of ₹112.08 crore in the year-ago period.
Shares of Hero MotoCorp trade flat
The country's largest two-wheeler maker reported a 9.05% rise in consolidated net profit to ₹963.82 crore for the September quarter on the back of robust sales. Hero MotoCorp had posted a net profit of ₹883.78 crore during the July-September period of the previous fiscal.
India's covid-19 tally cross 8 million mark
India’s confirmed coronavirus toll has crossed 8 million with daily cases dipping to the lowest level this week.
The Health Ministry reported another 49,881 infections in the past 24 hours. India is expected to become the pandemic’s worst-hit country in coming weeks, surpassing the US with more than 8.8 million infections.
All sectoral indices on NSE in the red
Indian benchmark share indices opened in the red on Thursday, dragged by HDFC twins, RIL, Infosys and L&T amid weak global cues.
Sensex opened at 39,537.17, down 385.29 points or 0.97%, while Nifty declined 96.30 points or 0.82% to open at 11,633.30. Asian Paints and Axis Banks were the only gainers in the 30-share barometer at open.
Indian stocks traded lower in the pre-opening session on Thursday. At 9:04am, Sensex was at 39,633.75, down 288.71 points or 0.72%, while Nifty declined 76.30 points or 0.65% at 11,653.30.
Stocks to Watch
Hero MotoCorp, Axis Bank, Infosys, MCX, Wipro, L&T and Yes Bank are among the top ten stocks that may be in focus today. (Full report)
Market at close on Wednesday
Indian stocks settled over 1% lower on Wednesday led by heavy selloff in HDFC twins, ICICI Bank, RIL, Infosys and Kotak Bank. Markets fell globally amid concerns about rising covid-19 infections in the US, Europe and uncertainty over next week's US elections.
Sensex settled at 39,922.46, down 599.64 or 1.48%, while Nifty declined 159.80 points or 1.34% to end at 11,729.60.
Asia's covid control tempers global stock selloff
Asian stock markets fell on Thursday but not as sharply as Wall Street's rout overnight, while oil bounced off lows and US futures jumped, as Asia's brighter economic outlook offset investor worries about fresh covid-19 lockdowns in Europe.
Japan's Nikkei was down 0.7%.
China's Shanghai Composite was little changed, while Hong Kong's Hang Seng declined over 1%.
Singapore's SGX Nifty retreated 0.35%.
Australia's ASX200 and South Korea's KOSPI dropped 1.7% each.
Wall Street sinks 3%
US stocks tumbled on Wednesday, with the Dow closing at lows last seen in late July, as coronavirus cases soared globally and investors worried about the possibility of a contested US presidential election next week.
The Dow Jones Industrial Average fell 943.24 points, or 3.43%, to 26,519.95, the S&P 500 lost 119.65 points, or 3.53%, to 3,271.03 and the Nasdaq Composite dropped 426.48 points, or 3.73%, to 11,004.87.
Volume on US exchanges was 11.00 billion shares.