Stock Market Highlights: Indian indices cracked to the lowest level in the past six days. Both Sensex and Nifty plunged 2.5 percent dragged by financials. Broader markets slipped 1.7 percent each while Nifty Bank remained the worst-performing index of the day, ending over 3 percent. Only 3 Nifty50 stocks ended in the green- Asian Paints, JSW Steel and Coal India. Bajaj Finance, Tech Mahindra and ICICI Bank ended over 4 percent. India VIX (Volatility Index) rallied up to 9 percent.
Here are the key highlights from today's trading session so far:
1. Sensex & Nifty snap 10-day gaining streak as global cues turn weak
2. Fresh COVID concerns lead to a sell-off in global markets
3. Sensex & Nifty erase nearly 40% of gains seen in previous ten sessions
4. Sensex & Nifty fall over 2% each & Nifty Bank declines over 3%
5. Nifty falls 291 points to 11,680 & Sensex 1,066 points to 39,728
6. Nifty Bank slips 802 points to 23,072 & Midcap index 287 points to 16,600
7. All sectoral indices close lower while volatility index surges 9%
8. 47 Nifty stocks close in the red; Bajaj Finance, Tech Mahindra, ICICI Bank top losers
9. BSE loses market capitalization of Rs 3.3 lakh crore today
10. Market breadth firmly in favour of declines; advance-decline ratio at 1:3
11. Tata Motors, Motherson Sumi slip as London announces restrictions on fresh COVID cases
12. Infosys fails to hold gains seen post earnings, closes 2% lower
Closing Bell: Sensex ends 1,066 points lower, Nifty below 11,700; financials, IT stocks drag
Indian indices ended over 2.5 percent lower on Thursday, snapping gains after 10 straight sessions, amid a selloff in all key sectors. The decline in global markets due to a rise in coronavirus cases and fading hopes for more US fiscal stimulus before the presidential election also weighed on the sentiment.
The Sensex ended 1,066 points lower at 39,728 while the Nifty lost 290 points to settle at 11,680. Broader markets also fell with the Nifty Midcap and Nifty Smallcap indices down over 1.5-2 percent.
All sectors were also in the red with Nifty Bank and Nifty Fin Services dragging the most, down over 3.5 percent and 3 percent, respectively. Meanwhile, Nifty IT also fell 2.8 percent and the pharma index shed 1.7 percent for the day. Nifty Auto and Nifty FMCG also lost over a percent each in trade today.
On the Nifty50 index, on 3 stocks - Asian Paints, JSW Steel and Coal India were in the green while Bajaj Finance, Tech Mahindra, IndusInd Bank, ICICI Bank and RIL led the losses.
IPO check: 81 out of 121 IPOs listed with gains between 2015-19; only 4 at 100% premium
As many as 81 initial public offerings (IPOs) out of a total of 121 between 2015 and 2019 have listed with gains bringing cheers to investors. Out of these 81 companies, 57 still traded above their issue price after a year while 24 listed with gains but dropped below their IPO price after a year.
Overall, the year 2020 has been a laggard in the IPO space, even as the recent weeks have seen some action with as many as 8 IPOs launched in September alone and quite a few in the pipeline for the remainder of the year. The new IPOs come after a four-month-long hiatus during which companies stayed away from the primary market.
In the last 5 years, 2015 witnessed a launch of 21 IPO followed by 26, 38 and 24 in 2016, 2017 and 2018, respectively. 2019 was also not a great year for IPOs, with only 12 IPOs coming out during the year. Read more
Quick Market Update: The Sensex cracks 1,000 points to trade below 40,000 while Nifty 50 index plunges 287 points below 11,700. At 3:07 pm, the Sensex is trading at 39,756.36 while the Nifty index is at 11,682.05. Bajaj Finance and Tech Mahindra were the index top losers, trading below over 4 percent followed by SBI, HCL Technologies and IndusInd Bank. Nifty Bank index is the worst-performing index of the day, down over 3 percent.
Interest waiver case: Small borrowers constituting 40% bank credit eligible for relief
The Supreme Court has asked the government to implement the decision to waive “interest on interest” or compound interest charged on loans of up to Rs 2 crore for the six-month moratorium period announced in the wake of the COVID-19 pandemic.
Analysts believe that these developments in the court are leaning favourably towards financiers and are positive for the sector as there were no discussions on expanding the scope of relief (a huge overhang) to other categories or to interest waiver.
Further, a relief on the compounding of interest would benefit small borrowers which constitute around 40 percent of the bank credit. Click here to read more
Rupee Update: The Indian rupee ended at 73.38 against the US dollar as compared to previous close of 73.3 after the massive volatility in the equity markets. Investors sentiment turned sour resulting into benchmarks cracking nearly 2 percent.
Stock Update: Lakshmi Vilas Bank's board approves Rights Issue worth up to Rs 500 crore. The Board at its meeting held on October 15, 2020 have considered and approved subject to necessary approvals, the raising of funds by issuance and allotment of equity shares or such other eligible securities of the Bank, for an aggregate amount of up to Rs 500 crore by way of a rights issue, the company said in an exchange filing. (Source: Moneycontrol)
Rane Brakes reports its Q2 earnings. Company approves share buyback up to Rs 22 crore at Rs 825/share. Buyback price of Rs 825 is at 18% premium to CMP.
European Markets: European stocks fell sharply on Thursday as hopes fade that a U.S. stimulus package will be agreed before the November election, and as restrictions return across Europe due to a surge in coronavirus infections.The pan-European Stoxx 600 dropped 1.9 percent in early trade, with travel and leisure stocks plunging 3.1 percent to lead losses as all sectors and major bourses slid into negative territory. European markets are following the tone set in the U.S. overnight with stock futures lower as traders continued to weigh the prospects for a coronavirus aid deal being reached before the November 3 election. Dow Jones Industrial Average futures were down 107 points. S&P 500 futures and Nasdaq 100 futures also traded in negative territory. (Source: CNBC International)
Important Update: PN Vasudevan, CEO, Equitas SFB says, "Our deadline to go public was September 2019 as per RBI rules. We missed September 19 deadline for listing because we were trying to get regulatory nod for a scheme of arrangement which SEBI rejected. Listing was further delayed due to the pandemic."
Top large, mid, and small-cap stocks bought and sold by mutual funds in September
Equity mutual funds witnessed outflow for the third consecutive month in September with investors moving out Rs 734 crore compared to an outflow of Rs 4,000 crore in August, the AMFI data showed. Except for equity-linked saving schemes (ELSS), focused fund and sectoral categories, all the other equity categories witnessed net outflow. The August outflow came on the back of large pull-out from multi-caps due to the Sebi guidelines.
Meanwhile, SIP inflows remained at Rs 7,788 crore in September as compared to Rs 7,792 crore in August
Besides, investors pulled out over Rs 51,900 crore from debt mutual funds (MFs) last month compared to Rs 3,907 crore in August, AMFI data added.
Overall, the mutual fund industry witnessed a net outflow of a little over Rs 52,000 crore across all segments during the period under review, as against Rs 14,553 crore in August. This outflow could be attributed to withdrawals from liquid, equity and hybrid schemes. Click here to read
Stock Update: Adani Green has expanded its joint venture with TOTAL with acquisition of solar assets worth Rs 1,632 crore, it said in an exchange filing. It has transferred operating solar assets worth 205 MW to its JV. Pursuant to the transaction, TOTAL has invested a sum of Rs 310 crore in the JV, the filing added further. The stock was trading slightly lower to Rs 719.65 per share on the NSE.
Tata Motors Shareholding: Rakesh Jhunjhunwala’s name appears in September shareholding with 1.29% stake
New Listing: The shares of Likhitha Infrastructure traded 13 percent higher to Rs 136 per share on the NSE against the issue price of Rs 120. However, the scrip had a subdued listing today, with 8.4 percent premium to its issue price. Read more about it here
Experts' View: "On the MCX, gold prices are expected to trade lower in today’s session. As for today traders can go for sell in gold at Rs 50,600 levels with the stop loss of Rs 51100 levels for the target of 49500 levels. They can also go for sell in Silver at Rs 61,200 levels, with the stop loss of 61,700 levels and for the target of 59,800 levels," said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking Ltd
Infosys shares pare gains to fall over 3% post Q2 earnings; brokerages remain bullish
Gold rate today: Yellow metal falls on steady dollar; Support seen at Rs 50,200 per 10 grams
Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday tracking weakness in the international spot prices amid a steady dollar and uncertainty over stimulus package in the US. At 10:30 am, gold futures for December delivery fell 0.21 percent to Rs 50,435 per 10 grams as against the previous close of Rs 50,542 and opening price of Rs 50,314 on the MCX. Silver futures traded 0.66 percent lower at Rs 61,195 per kg. The prices opened at Rs 61,114 as compared to the previous close of Rs 61,603 per kg. “Uncertainties over the additional corona relief fund by US underpinned the dollar which might weigh on gold prices. On the MCX, gold prices are expected to trade lower in today’s session,” said Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking Ltd.
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd
Equitas Small Finance Bank (SFB) is coming up with IPO on 20 Oct 2020 to raise Rs.532cr. The fresh issue of equity shares of the Equitas SFB IPO has revised recently downward to Rs 280 crore from Rs 550 crore planned earlier. The IPO consists of a fresh issue of 8 crore equity shares and an offer for sale of 7.2 crore equity shares.
Market source predicting IPO could be in the range of 31 - 35 per share. At the rate of 35 Equitas SFB demanding valuation of 1.3x of Q1FY21 Book value. Peers are trading at a higher valuation, Ujjivan 1.8x and AU SFB at 4.9 x of Q1FY21 Book value. We believe Equita SFB valuation in the range of 1 -1.2x will garner healthy interest from investors.
Interest waiver: Real estate shouldn’t expect any special relief, says Shardul Shroff
The Supreme Court has told the government to implement the interest-on-interest waiver scheme for small borrowers. So what does this mean for banks and the real estate sector. Interest-on-interest here means that borrowers will have to pay additional interest if they had availed the moratorium offered by banks between March and August. Shardul Shroff, Executive Chairman of Shardul Amarchand Mangaldas & Company shared his thoughts on this in an interview with CNBC-TV18. Real estate has been among the sectors most vocal in its demand that interest-on-interest be waived. “I do not think the court has now the opportunity to look into real estate issues because it has taken quite a long time,” Shroff said. According to him, banks will not be asked to bear the tab of interest on interest waiver. Watch video for more
CNBC-TV18 Investment Guide: All you need to know about delisting process
Earnings Impact: Tata Elxsi shares jump 5% after it reports a 58% rise in Q2 net profit
Shares of Tata Elxsi jumped over 5 on Thursday after the company announced robust results for the September quarter. The design and technology services provider reported a 58.3 percent increase in net profit to Rs 78.8 crore in Q2 versus a net profit of Rs 49.8 crore in the year-ago period. Its revenue from operations rose 11.5 percent to Rs 430.2 crore for the said quarter from Rs 385.8 crore in the corresponding period a year ago. The stock rose a much as 5.2 percent to Rs 1,533.55 per share on BSE.
Den Networks Q2 net profit declines 61.4% to Rs 36 crore
Cable and broadband services provider Den Networks on Wednesday reported a 61.41 percent decline in its consolidated net profit to Rs 36.77 crore in the second quarter ended September 30. The company had reported a net profit of Rs 95.30 crore in the September 2019 quarter, Den Networks said in a regulatory filing. Its total income stood at Rs 378.81 crore, up 1.06 percent during the quarter as against Rs 374.82 crore a year ago. Den Networks' total expenses were at Rs 338 crore as against Rs 365.27 crore, down 7.46 percent. Its revenue from cable distribution network was Rs 318.82 crore and from broadband services, Rs 18.84 crore. Shares of Den Networks Ltd on Wednesday settled at Rs 85.75 on the BSE, down 3.43 percent from the previous close.
Likhitha Infrastructure lists at a premium of 8.4% at Rs 130 per share against issue price
Shares of Likhita Infrastructure made a lukewarm debut on bourses on Thursday, at Rs 130 per share on the BSE, 8.41 percent premium against the issue price of 120 per share. The shares surged as much as Rs 131 in early trade. The Hyderabad-based infrastructure company had come out with a Rs 61-crore issue, small compared to most recent IPOs on the main board, with a final issue price of Rs 120 per share. The issue was subscribed 9.51 times on the last day of its bidding, though the company had to extend its closing date of the IPO to October 7 due to tepid response from the Qualified Institutional Buyers (QIBs). Brokerages had mixed ratings for the IPO. Considering small issue size, some recommended avoiding the IPO while others remained hopeful with a long-term view.
MTNL up over 6% after Telecom dept asks PSUs & ministries to use networks of BSNL & MTNL
These 2 midcap IT stocks could be next Infosys, TCS in 10-15 years: Edelweiss
Residential sales bounce back in July-Sept quarter, but prices see muted growth
In what can be considered as a sharp recovery for the real estate sector, research reports suggest that India’s eight prime residential markets saw an increase of 85 percent in the residential sales in the July-September quarter as against the performance in the April-June quarter in the current calendar year. According to the Real Insight Q3 2020 report by online real estate brokerage firm PropTiger.com, the quarterly analysis of India’s eight prime residential markets show that the residential home sales aggregated to 35,132 units during Q3 of the current calendar year, marking an increase of 85 percent over the previous quarter. The report said the housing units in the sub-Rs 45 lakh price bracket, categorised as the affordable housing segment under income tax laws in India, made the biggest contribution to sales during the quarter, contributing 45 percent to overall sales numbers. More here
Opening Bell: Sensex, Nifty open flat; Infosys up 3.5% post Q2 earnings
Indian indices opened flat on Thursday as gains in IT stocks post Infosys' earnings were capped by financials and heavyweight RIL. Infosys rose almost 3.5 percent in early deals after it beat street estimates, with profit rising 14.5 percent QoQ in September quarter. At 9:18 am, the Sensex was up 31 points at 40,825 while the Nifty rose 19 points to 11,989. The broader markets were also positive in early deals with midcap and smallcap indices up 0.3 percent each. Among sectors, the Nifty IT index rose the most, up 0.8 percent followed by Nifty Auto and Nifty Metal, which were up 0.6 percent each. Meanwhile, Nifty Bank and Nifty Fin Services fell 0.7 percent in early deals and Nifty FMCG was down 0.4 percent.
Infosys expands presence in Mexico, Canada as H-1B visa issue rages on in US
Infosys is expanding its presence in Mexico and Canada to offer same time-zone services to clients in the US as the Trump administration continues to clamp down on H-1B visa rules which IT companies depend on. The Trump administration published a new set of rules this month that has led to a hike in wages for H-1B visa holders and more stringent inspection and monitoring of employers. However, companies such as Infosys, TCS and Wipro have been able to lower their dependence on H-1B visas over the years through increased localisation. "The new wage increase will impact only new labour conditions applications (LCAs) for H-1B visas, not existing ones," Infosys COO Pravin Rao said. More here