Sensex ends 144 points higher, Nifty at 11,669; RIL slumps 9%

After swinging between gains and losses, Indian benchmark share indices managed to settle higher on Monday led by gains in HDFC twins and ICICI Bank. Sensex ended at 39,757.58, up 143.51 points or 0.36%, while Nifty advanced 26.75 points or 0.23% to close at 11,668.15.

Shares of Reliance Industries Ltd (RIL), which gained in the previous sessions in the run-up to the company's quarterly results, fell as much as 9% after it reported a slide in September-quarter profit.

IndusInd Bank, closing over 6% higher, was the top Sensex gainer followed by ICICI Bank, Axis Bank, HDFC and Bharti Airtel. RIL was the top laggard followed by HCL Tech, TCS, Tata Steel and Asian Paints.

Of 30 Sensex shares, 12 closed in the red.

Mukesh Ambani, Asia’s richest man, lost as much as $5 billion from his net worth as Reliance Industries Ltd.’s shares tumbled to the lowest price in more than three months following a drop in quarterly profit.

The stock of India’s most-valuable company fell as much as 8% in Mumbai on Monday as of 3:00 p.m., slipping the most since May 12 and touching the lowest since July 20. The slide also shaved down Ambani’s wealth to about $73 billion to mark his worst day since March, according to the Bloomberg Billionaires Index.

DCB Bank on Saturday reported nearly 10 per cent decline in net profit at ₹82 crore for the quarter ended September 30, 2020 as provisions rose.

The bank logged a net profit of ₹91 crore in the same quarter of the previous fiscal year."Profit before tax for the quarter was impacted by ₹48 crore COVID-19 regulatory package provision. In order to further strengthen the balance sheet, the bank intends to make conservative provisions given the current environment," DCB Bank said in a release.

Consumer electronics firm Whirlpool of India on Monday reported consolidated profit of ₹134.67 crore for the quarter ended September 30, 2020.

The company had posted a profit of ₹128.7 crore in the corresponding period a year ago.

Total income during the quarter under review stood at ₹1,634.31 crore. It was at ₹1,432.15 crore in the year-ago period last year, Whirlpool of India said in a regulatory filing.

State-owned mining major NMDC on Monday said its board will meet next week to consider a proposal for share buyback.

The company said its board will also approve the financial result for the quarter ended September 30, 2020.

A meeting of Board of Directors of the company is scheduled to be held on November 10, 2020...to consider the proposal for buyback of the fully paid-up equity shares of the company of face value of ₹1 each," NMDC said in a regulatory filing.

Mortgage lender HDFC on Monday reported a 27% year-on-year fall in standalone profit at ₹ 2,870.12 crore for the September quarter owing to lower profit on sale of investments and additional provision due to covid. The lender had reported ₹3962 crore profit in the same quarter last year.

Revenue from operations climbed marginally to ₹13,017.68 crore from ₹12,990.29 crore in the same quarter last year.

The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 15%. With the unlocking of the Indian economy, traction in individual loans gained momentum with successive month-on-month improvements. The months of September and October 2020 also saw the strongest recovery since the outbreak of the pandemic.

Rupee settles 32 paise lower at 74.42 against US dollar.

Shriram Transport Finance (STFC) reported a moderate set of Numbers for Q2FY21. AUM grew at 4.8% YoY and 1.4% QoQ led by 8% growth in used vehicles. PAT declined by 10.5% YoY due to 2% growth NII and other income declined 53%.Asset quality improved as GNPA/ NNPA ratio declined to 6.4%/ 3.6% from 8.0%/ 5.1% in Q1. Management expects AUM to grow at 5-6% in FY21 and for the next two-quarters disbursement would reach pre covid level of Rs. 12000-13000cr. Managemen guided credit cost of less than 2.8% compared to earlier guidance of 3%. currently Shriram transport trading at 0.7x of FY22 Adj Book value, which is lower compared to historical valuation, however, an investor would wait for the final restructuring number and slippages from the moratorium book in Q3FY21, said Jaikishan Parmar, senior equity research analyst, Angel Broking Ltd.

Hiring in India's auto sector continued to improve with a 29percentage sequential growth in September this year although it remains below the pre-covid-19 period, according to leading online job site Naukri.com.

This positive trend has continued since June 2020 and the sector has been recovering month on month, the company said in a statement.

When we compare the performance of this sector between the pre and post-covid-19 period, there has been an evident recovery, but it still remains down by 25% in September versus the pre-covid-19 period, it said.

In April this year, it was down 80% when compared to the pre-covid-19 period.

Consolidated net profit stood at ₹35.5 million versus loss ₹821.7 million rupees year ago.

Consolidated revenue from continuing operations stood at ₹7.14 billion versus ₹6.83 billion year ago.

In the month of October 20, overall M&M tractor sales grew ~2%. Domestic sales in October 2020 were at 45,588 units, as against 44,646 units during October 2019. Exports for the month stood at 970 units (growth of 23% over last year). M&M continue to witness unprecedented retail demand which is likely to be higher than wholesale numbers on back of expectations of a higher Kharif output and good cash flow in the market. Auspicious festival days ahead, coupled with mechanization requirements for ongoing Kharif harvesting and impending Rabi sowing season augurs well for the industry, said Amarjeet Maurya - AVP - Mid Caps, Angel Broking.

Mahindra Logistics on Friday reported a 31.41% jump in its consolidated profit to ₹14.85 crore for the quarter ended September.

The logistics arm of the Mahindra Group had clocked a consolidated profit after tax of ₹11.30 crore during the second quarter of the previous fiscal, the company said in a BSE filing.

Max Financial Services Ltd (MFSL), the holding company of Max Life Insurance, on Friday reported a 26% increase in consolidated net profit to ₹81 crore for the September quarter.

The company had posted a net profit of ₹64 crore in the corresponding period of the previous fiscal.

Relaxo Footwears Ltd on Saturday reported an increase of 6.46 per cent in its net profit at ₹75.10 crore in the second quarter ended September 2020.

It had posted a net profit of ₹70.54 crore in the July-September quarter last fiscal, Relaxo Footwears said in a regulatory filing.

Its revenue from operations was down 7.38 per cent to ₹575.87 crore during the period under review as against ₹621.77 crore in the corresponding three months of the previous fiscal.

IDFC First Bank on Saturday reported a net profit of ₹101 crore for the July-September quarter of the current fiscal year on healthy interest income and lower provisions.

The private sector lender had posted a net loss of ₹680 crore in the same quarter a year ago.

The profit after tax for the half-year ended September 30, 2020, is reported at ₹195 crore. Thus the bank reported three consecutive quarters of profitability, IDFC First Bank said in a release.

Agro-chemical firm UPL reported over two-fold jump in its consolidated net profit to ₹537 crore for the second quarter ended September 30. Its net profit stood at ₹202 crore in the year-ago period.

The non-banking finance company that forms the investment arm of the JSW Group on Saturday posted 48.1 decline in consolidated profit at ₹39.48 crore for the quarter ended September 30, 2020. The company had posted a profit of ₹76.20 crore for the year-ago period, JSW Holdings said in a filing to BSE.

Realty major DLF on Friday reported a 48% decline in its consolidated net profit at ₹232.14 crore for the quarter ended September. Its net profit stood at ₹445.83 crore in the year-ago period.

The telecom operator could be the first among the three largest private telecom players in India to hike the prices of voice and data services. Vodafone Idea will not shy away from raising prices and will set a precedent for others to follow, the company’s chief executive (CEO), Ravinder Takkar, told analysts at post-earnings call on Friday.

HDFC Securities see an upside of 25% in the stock of ICICI Bank from the current market price of ₹407 to the target price of ₹503. Motilal Oswal has given a buy rating with a target price of ₹525. HDFC Securities revised its target price upwards from the earlier quoted price of ₹496 and maintains 'Buy'. ICICIBC’s 2Q earnings were significantly ahead of estimates, led by better than-anticipated operating performance and lower-than-expected provisions. Like most banks in 2Q, ICICIBC reported a swift improvement in collections and disbursals, says Darpin Shah, Institutional Research Analyst, HDFC Securities. (Full report)

Nearly 46 leading US companies and business organizations, including tech giants Apple, Google, Twitter and Facebook, representing and working with key sectors of the US economy, have filed an amicus brief that supports a legal challenge to block upcoming rule changes to H-1B visa eligibility. Amicus briefs are legal documents filed in appellate court cases by non-litigants with a strong interest in the subject matter. (Full report)

Manufacturing output showed the strongest growth in 13 years in October, amid robust sales growth, IHS Markit India purchase managers’ index for the month showed, indicating that economic recovery after lifting of lockdown restrictions was gaining further ground.

Rising from 56.8 in September to 58.9 in October, the headline seasonally adjusted PMI pointed to the strongest improvement in the health of the sector in over a decade, the information provider said in a statement on Monday.

The index is compiled from responses in the second half of the month from around 400 manufacturers, which indicates the direction of change compared to the previous month. A reading above 50 shows expansion from the previous month.

India’s largest carmaker Maruti Suzuki India Ltd (MSIL) reported a 19 percentage surge in its October wholesale volumes at 182,448 units, including exports. Powered by festive demand, Maruti’s total domestic passenger vehicle wholesales were at 163,656 units, up 17.6percentageyear-over-year from 139,121 units sold in October last year.

Shares of Reliance Industries Ltd slipped 5 percentage on Monday to hit over a three-month low after the company reported 15 percentage decline in its net profit for the September quarter.

At 11.30am, the stock was at 1947 on the BSE, down 5.23% from its previous close. Intraday, the scrip declined 5.05%, its biggest single day fall since 13 May to hit a low of ₹1950. Year to date it has risen 31%.

Private lender Axis Bank Ltd on Friday said that it will acquire up to 19% in Max Life Insurance Co. Ltd. through various Axis entities since the Reserve Bank of India has turned down the bank's earlier proposal to directly buy a stake of 17% in the life insurer.

IndusInd Bank on Friday reported over 53% decline in its standalone net profit at ₹647.04 crore in the three months ended September.

The bank had posted a net profit of ₹1,383.37 crore in the year-ago period.

On the standalone basis, total income fell to ₹8,731.05 crore in the second quarter of the current financial year. In the same period a year ago, it stood at ₹8,877.02 crore, IndusInd Bank said in a regulatory filing.

The bank's gross Non-Performing Assets (NPAs) slightly increased to 2.21% of the gross advances as of September 30, 2020 from 2.19% in the year-ago period.

Rupee slumps 30 paise to 74.40 against US dollar in early trade.

TVS Motor Company sold 394,724 units in October 2020, up 22% from 323,368 units in October 2019.

Shares of Equitas Small Finance Bank made a tepid stock markets debut on Monday. The stock was listed at ₹31.10 a discount of 5.7% over its issue price of ₹33 a piece. The initial public offering (IPO) to raise ₹518 crore was subscribed 1.95 times during 20-22 October share sale.

"The Nifty broke 11600 on Friday which made the short term trend bearish. The index could fall further and hit 11400 as a potential target. 11700-11750 is the range of the resistance and any upside can be expected only if we start trading above these levels," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) posted a 15% drop in September-quarter profit as the coronavirus crisis hammered its oil business, although the Indian conglomerate reaped double-digit revenue growth at its Jio telecom service. Consolidated net profit slipped to ₹9,567 crore in July-September compared with ₹11,262 crore a year back.

ICICI Bank reported over four-fold jump in consolidated net profit at ₹4,882 crore for September quarter driven largely by core income growth and lesser provisions for the pandemic-related impact. In the year-ago quarter, the profit stood at ₹1,131 crore.

Indian benchmark share indices opened higher on Monday tracking positive cues from Asian peers.

Asian shares bounced off one-month lows on solid data from China showing factory activity expanded at its fastest pace in a decade.

Sensex opened at 39,880.38, up 266.31 points or 0.67%, while Nifty advanced 54.95 points or 0.47% at 11,697.35.

ICICI Bank, surging over 6%, was the top Sensex gainer followed by IndusInd Bank, SBI, Maruti and NTPC. RIL, Ultratech Cement, Asian Paints and Nestle were among the laggards. Of 30 Sensex shares, 25 opened in the green.

RIL, ICICI Bank, IndusInd Bank, Axis Bank, Maruti and Vodafone Idea are among the top stocks that may be in news today. (Full report)

Indian stocks traded higher in the pre-opening session on Monday. At 9:04am, Sensex was at 39,783.56, up 169.49 points or 0.43%, while Nifty advanced 84.35 points or 0.72% at 11,726.75.

The Sensex and Nifty retreated for the third session on the trot on Friday amid continued weakness in global markets due to rising covid-19 cases in Europe and uncertainty ahead of US elections.

After gyrating 746 points during the day, the 30-share BSE Sensex ended 135.78 points or 0.34% lower at 39,614.07.

Similarly, the broader NSE Nifty slipped 28.40 points or 0.24% to 11,642.40.

Asian shares bounced off one-month lows on Monday on solid data from China showing factory activity expanded at its fastest pace in a decade while oil prices skidded as many Western countries slid back into coronavirus-driven lockdowns.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.5%.

Australia's ASX200 rose 0.4%.

Japan's Nikkei jumped 1.5%.

China's Shanghai Composite was little changed, while Hong Kong's Hang Seng rose 0.7%.

Singapore's SGX Nifty advanced 0.2%.

US stock indexes closed lower on Friday to cap Wall Street's biggest weekly sell-off since March, as losses in richly priced tech heavyweights, a record rise in coronavirus cases and jitters over the presidential election snuffed investor sentiment.

The Dow Jones Industrial Average fell 157.51 points, or 0.59%, to 26,501.6. The S&P 500 lost 40.15 points, or 1.21%, to 3,269.96 and the Nasdaq Composite dropped 274.00 points, or 2.45%, to 10,911.59.

For the week, the Dow fell 6.5&, the S&P 500 5.6% and the Nasdaq 5.5%. For the month, the Dow slid 4.6%, the S&P 500 2.8% and the Nasdaq 2.3%.