Stock Market Highlights: The Indian stock market ended lower for the day but gained in the October expiry series. The Sensex ended 173 points to 39,749.85 while the Nifty50 index ended at 11,670.80, down 59 points. Barring IT index, all sectors closed in red. Broader markets underperformed the benchmarks, by closing up to 1 percent lower. L&T and Titan were the index top losers, down up to 5 percent.
Here are the key highlights from today's trading session:
1. Market falls for 2nd straight day; Sensex & Nifty at 3-week lows
2. Nifty fails to hold 11,700, ends 59 points lower at 11,671
3. Sensex slips 173 points to 39,750 & Nifty Bank 141 points to 24,092
4. Midcap Index declines 74 points to 16,974; market breadth favours declines
5. L&T top Nifty loser after Q2 earnings & lower special dividend than expectations
6. Titan extends yesterday's losses as commentary fails to boost the sentiment
7. Axis Bank falls 2% after reporting higher slippages in Q2
8. Maruti reporting earnings lower than expectations, stock slips over 1%
9. Reliance Industries closes with a gain of 1% ahead of results tomorrow
10. Jute Companies surge on Cabinet decision w.r.t compulsory jute package, Ludlow up 11%
11. Piramal Enterprises, Tata Elxsi, Chemcon Speciality, NIIT Tech top Midcap losers
Closing Bell: Market ends in red for second day but gain in October expiry; L&T, Titan top losers
The Indian stock market ended lower for the day but gained in the October expiry series. The Sensex ended 173 points to 39,749.85 while the Nifty50 index ended at 11,670.80, down 59 points.
Asian Paints, UltraTech Cement, Shree Cements, HCL Tech and Kotak Mahindra Bank were among major gainers on the Nifty, while losers were L&T, Titan Company, ONGC, Adani Ports and Tata Motors.
Except IT and energy, all other sectoral indices ended lower led by FMCG, pharma, metal and auto. BSE Samllcap index shed 0.5 percent.
Laurus Labs' Q2 consolidated net profit comes in at Rs 242.3 cr, more than 300% on a yearly basis. Tax expense is at Rs 72 cr Vs Rs 9.2 cr
Gold Updates: Gold inched up on Thursday after a sharp slide in the previous session as a halt in the dollar's rally supported some safe- haven buying driven by surging coronavirus cases and the approaching U.S. elections.
Cabinet approves 100% jute bag packaging for food grains & 20% for sugar
Will reach 90% demand levels in Q3 and 100% recovery by Q4, says Blue Star
Blue Star's revenue is a miss on estimates, but the margins were salvaged due to cost-cutting.
Talking about cost-cutting, Vir Advani, VC & MD, Blue Star said, “We have managed to hold on to margins which were good in spite of price realization dropping in the market and that was supported by overheads and operating cost reduction. We have done some structural changes to our cost structure which I am confident will carry through the year and even into next year.”
“On the operations, we had a reasonably okay Q2, revenue recovered to about 72 percent compared to the same quarter last year and EBITDA recovered to 75 percent," Advani added. Read more
Havells Q2 net profit at Rs 326 cr Vs CNBC-TV18 poll of Rs 155 crore
Maruti Suzuki's consolidated net profit rises 2% YoY to Rs 1,419 crore
Maruti Suzuki on Thursday reported a 2 percent rise in the consolidated net profit for the quarter ended September at Rs 1,419 crore as against Rs 1,391 crore in the corresponding quarter last year.
CNBC-TV18 poll predicted the net profit to be at Rs 1,522 crore.
Revenue from operations surged 10.34 percent YoY to Rs 18,755 crore as compared to Rs 16,997 crore in the same quarter last year.
Earnings before interest, tax, depreciation and amortization (EBITDA) surged 20 percent YoY to Rs 1,933 crore while margins improved to 10.3 percent from 9.5 percent led by lower sales promotion and advertising expenses.
Sales in the domestic market was up 18.6 percent to 3.7 lakh units. High sales volumes lead to improved capacity utilization, said the company's press release.
At 2:10 pm, the stock traded over 2 percent lower to Rs 7,028 per share on the NSE.
Rupee Update: The Indian currency ended lower for the second day in a row amidst volatility in the equity markets. The rupee ended at 74.11 against the US dollar as compared to the previous day's close of 73.87.
Stock Update: IDBI Bank's Board approved raising up to Rs 6000 crore via issue of equity shares. At 2 pm, the shares traded 0.8 percent lower to Rs 36.95 per share on the NSE.
BPCL reports profit, EBITDA & margin higher than expectations
Markets worried for 2nd wave of COVID could cause more bankruptcies: Andrew Holland of Avendus
Markets are worried that the second wave of COVID-19 could lead to more bankruptcies than we saw in the first round, said Andrew Holland, Chief Executive Officer at Avendus Capital Alternate Strategies.
The second wave of COVID-19 in Europe is alarming and quick, he said. “We know what the government and the central bank’s response will be, so we expect more action there in terms of stimulus,” he said in an interview with CNBC-TV18.
“The whole capital goods space is something where one has to be confident that there will be a rebound in the Indian economy,” he added.
According to him, one has to see acceleration into the second half of 2021 to get excited about the capital goods sector. Speaking about Larsen and Toubro (L&T), he said, “The move in the stock is going to be when you have that confidence and not having it in your portfolio could be a mistake.”
He believes, having some economic recovery sectors and stocks is probably the way to play the market over the next six months. Watch the video here
ICICIdirect on Axis Bank: The management held its guidance to remain well above industry credit growth, though it is currently cautious on certain segments. It can see minimal loans going for restructuring (estimated 1.6% of loans). Strong capital position, healthy operating metrics and reasonable prudence in provisioning provides comfort for steady earnings visibility and return ratios reaching 0.9% RoA and ~9% RoE by FY22. ICICIdierct value the bank at 1.6x FY22E ABV to arrive at a revised target price of Rs 600 (from Rs 530) and maintain buy.
Sources tell CNBC-Awaaz that the Cabinet has approved hike in Ethanol prices by Rs 3.34/Litre.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments: We broke the support of 11,650 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 11,650. Traders can then look at initiating shorts below 11,650 for a target of 11,450. The upside is capped at the resistance level of 11,900.
Stock Update: Cadila Healthcare's shares traded 0.6 percent lower to Rs 415.95 per share on the NSE despite receiving tentative approval from the US FDA to market Linagliptin Tablets, 5 mg (US RLD: Tradjenta Tablets). Linagliptin is a dipeptidyl peptidase-4 (DPP-4) inhibitor indicated as an adjunct to diet and exercise to improve glycemic control in adults with Type 2 diabetes mellitus.
The drug will be manufactured at the group’s formulation manufacturing facility at the SEZ, Ahmedabad. The group now has 310 approvals and has so far filed over 390 ANDAs since the commencement of the filing process in FY 2003-04.
Hero MotoCorp in its conference call says that the festive season has started well for co & that co registered retail at 96% of last year’s level in first 10 days of retail.
Pidilite Industries acquires Indian subsidiary of Huntsman Group: Pidilite Industries share price rose 2 percent on October 29 after the company acquired Indian subsidiary of Huntsman Group. The company board 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), as per the release.
This said acquisition is for a cash consideration of approximately Rs 2100 crore, excluding customary working capital and other adjustments, subject to certain preconditions being met prior to the closing of the transaction. (Source: Moneycontrol)
Indian equity market more expensive than China's market, says Nomura: The Indian equity market is more expensive than the Chinese market, said Jim McCafferty, Joint-Head of APAC Equity Research at Nomura. “We believe global investors have a wide choice of markets to participate in,” he said in an interview with CNBC-TV18. On the COVID-19 situation, he said the rising cases are compounding the problem in Europe. “Population in China is deferent to the government which is not the case in Europe and US,” he said.
Govt relaxes minimum investment norm for bulk drug & medical device PLI scheme. It will now allow both intl & domestic sales to avail incentives.
Titan's Management Commentary: In a conversation with CNBC-TV18, the management said, "We are confident that the market will bounce back. The industry has been in a weak position but we will be strongly focused on studded jewellery in the next 2-3 quarters. We are going to open 30-35 stores this year." The stock, in the meanwhile, was trading over 2 percent lower to Rs 1,181 per share on the NSE.
HAL signs contract with Tech Mahindra: Hindustan Aeronautics (HAL) and Tech Mahindra (TM) signed a contract worth Rs 400 crore recently in Bengaluru for implementation of Enterprise Resource Planning (ERP) to support HAL’s ‘Project Parivartan’. Tech Mahindra's shares are trading 0.7 percent higher to Rs 795 per share on the NSE.
Rupee Update: The Indian currency slipped in the early trade on Thursday as it opened at lowest level against the dollar since August 27. It opened 17 paise lower at 74.04 per dollar versus previous close of 73.87, amid selling seen in the domestic equity market. On October 28, the local currency ended lower by 16 paise at 73.87 verus Tuesday's close of 73.71.
TVS Motors profit may fall 26% while revenue is seen increasing 8% YoY. Gross profit per vehicle may decline by Rs 471
ECB to pave way for more stimulus as recession fears grow:The European Central Bank is expected to resist pressure to unveil fresh stimulus measures on Thursday but it will likely pave the way for action in December as fresh restrictions aimed at containing the coronavirus pandemic fuel fears over a new recession.
Having already lined up unprecedented firepower to prop up the 19-member currency bloc's economy, the ECB is in no hurry to act, as its ongoing bond buying could keep markets calm well into next year. Policymakers also appear keen to push governments to take the lead.
Stock Update: Ajanta Pharma's gained as much as over 5 percent to Rs 1,680 per share on the NSE after the company said it will decide on the buyback proposal on November 3. That is also the day when the company will declare its quarterly earnings for the July-September period.
IndiGo may continue to report loss with Q2 loss seen widening to Rs 1,897 cr and EBITDA loss to Rs 629 cr
Maruti Suzuki may see an improvement in frontline numbers with profit rising 12% and EBITDA 30% YoY. Rise in metal prices post Q2 may be a headwind for margin going ahead
Opening Bell: The Indian stock market opened on a negative note on Thursday due to the sour investors' sentiment in the global markets. The Sensex opened 309 points lower to 39,613.80 while the Nifty50 index opened at 11,637.30, down 92 points. Among Nifty50 top losers, L&T declined over 3 percent after Q2 earnings. Other losers included Tech Mahindra, Tata Motors, Titan and M&M.