Sensex, Nifty Fall For 2nd Day As Axis Drags Banks Lower; Tata Group Stocks Extend Decline
The early indicator SGX Nifty declined 0.4 percent to 8,663.
Closing Bell
Indian shares declined for a second straight day led by lenders, as concerns about bad debts resurfaced after Axis Bank reported a quadruple increase in provisions.
Shares of the country’s fourth largest lender slumped the most in a year, halting a four-day climb in the Nifty Bank index. Besides banks, Tata Group stocks extended their fall after the abrupt ouster of Chairman Cyrus Mistry on Monday.
The S&P BSE Sensex dropped 0.9 percent to 27,836 while the NSE Nifty lost 0.9 percent as well to 8,615. The market breadth was abysmal at 1,060 declines, 542 advances and 274 stocks remaining unchanged.
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HDFC Bank Q2 Meets Estimates; Shares Recoup Losses
Shares of the housing finance company recovered some their losses after its second quarter earnings met street estimates.
It clocked a net profit of Rs 1,827 crore for the quarter-ended September, compared to Rs 1,604 crore same period last year. A Bloomberg consensus of analysts’ estimate had pegged the profit to come in at Rs 1,810 crore. (Read the full report HERE)
ITC Shares Gain Despite Profit Lags Estimate
Shares of the cigarette-to-soap conglomerate recovered from early losses and rose 1.5 percent despite its second quarter missed street estimates.
It clocked a net profit of Rs 2,500 crore for quarter-ended September, compared to Rs 2,262 crore. This was below the Rs 2,671 crore estimated by analysts polled by Bloomberg.
However, ITC managed to grow cigarette sales for the quarter. Cigarette sales came in Rs 8,530 crore for the three-month period, compared to Rs 7,960 crore same period last year.
Read the full earnings copy HERE
Jubilant Foodworks Falls Over 6% After Q2 Misses Estimates
Shares of the company fell as much as 6.15 percent to Rs 1,076 after its second quarter numbers missed analyst estimates.
Net profit for the company fell 1.5 percent to Rs 21.9 crore compared to Rs 21.6 crore in the year-ago period. Total income for the company was at Rs 666 crore which was in-line with analyst estimates of Rs 658 crore.
Hero Motocorp Gains Ahead of Q2 Earnings
Shares of the two-wheeler maker rose 2.1 percent, biggest single-day gain since October 3, ahead of its second quarter earnings announced later in the day.
The Japanese Are Buying Rupee-Linked Bonds Like Never Before
Cadila Healthcare Sinks After Q2 Misses Estimates
Shares of the pharmaceutical company fell as much as 6.33 percent to Rs 382.05 after its second quarter earnings missed street estimates. Profit for the quarter was at Rs 338 crore, which was below the estimated figure of Rs 379 crore.
It clocked a revenue of Rs 2,400 crore for the three-month period. Analysts had estimated the figure to come in at Rs 2,470 crore.
L&T Finance Hits Life-Time High
Shares of the finance unit of Larsen & Toubro gained 4.4 percent to Rs 107, a new all-time high for the stock after reporting second quarter earnings ahead of street expectations.
The company reported a net profit of Rs 248 crore for quarter-ended September, against a Rs 222 crore estimated by analysts polled by Bloomberg.
Navneet Education Buys Britannica’s India Curriculum; Stock Jumps
Shares of the school supplies maker gained as much as 5.6 percent to Rs 114, to a new 52-week high, after announcing acquisition of Chicago- based Britannica’s Indian curriculum business.
Under the agreement, the current Britannica business unit will become an independent company with Navneet, the company said in a press release.
“The company will market Britannica’s existing India-specific curriculum titles such as, ‘Know for Sure’ and ‘The English Channel’ as well as develop new titles under Britannica’s brand, editorial supervision and guidelines for 7 years,” the company’s filing to the exchanges read.
The stock has risen six out of the last seven trading sessions. However, momentum indicator Relative Strength Index (or RSI) has slipped above the 70-mark, indicating that investors feel the stock is in overbought zone.
Bharti Airtel Tops Sensex, Nifty on Q2 Boost
Shares of the country’s largest telecom firm gained as much as 3.5 percent, the biggest intra-day gain since July 15, after beating street estimates with its second quarter earnings.
Billionaire Sunil Mittal run firm’s profit fell 5 percent, on a yearly basis, in a seasonally weak quarter. Unlike Idea Cellular Ltd., which underperformed analysts’ expectations by 49 percent, Bharti managed to beat the Bloomberg consensus estimate by 19 percent.
However, its average revenue per user (ARPU) in India fell to Rs 188, lowest since the quarter-ended December 2012.
Read the full report HERE
Opening Bell
Indian shares declined for a second day weighed down by disappointing second quarter earnings from Axis Bank while Tata Group stocks extend their slide after the nation’s biggest business group abruptly ousted its chairman.
The S&P BSE Sensex dropped 0.6 percent to 27,908 while the NSE Nifty lost 0.6 percent as well to 8,637. The market breadth was skewed in favour of the bears at 877 declines, 570 advances and 410 stocks remaining unchanged.
In terms of gainers, Bharti Airtel is the top performing stock on the Sensex and the Nifty. In fact, the S&P BSE Telecom index is the best performing sectoral gauge on the exchange.
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Movers & Shakers: Tata Group Stocks, ITC, Axis Bank, Airtel And More
Earnings to Watch (net income adj. estimates where available)
- Ajanta Pharma Q2 Rs 203 crore
- Cadila Healthcare Q2 Rs 379 crore
- Canara Bank Q2 Rs 299 crore
- Coromandel International Q2 Rs 167 crore
- Cummins India Q2 Rs 193 crore
- Dabur India Q2 Rs 365 crore
- Dalmia Bharat Q2 Rs 50.5 crore
- Exide Industries Q2 Rs 180 crore
- Hero MotoCorp Q2 Rs 931 crore
- Hindustan Unilever Q2 Rs 1,050 crore
- HDFC Q2 Rs 1,810 crore
- IIFL Holdings Q2
- International Paper APPM Q2
- ITC Q2 Rs 2670 crore
- JK Lakshmi Cement Q2 Rs 12.3 crore
- JSW Energy Q2 Rs 312 crore
- Jubilant Foodworks Q2 Rs 27.2 crore
- Just Dial Q2 Rs 30.3 crore
- Raymond Q2
- Religare Enterprises Q2
- State Bank of Travancore Q2
- Syndicate Bank Q2
- Thomas Cook India
- Torrent Pharmaceuticals Q2 Rs 279 crore
Stocks to Watch
- Cipla : Amgen’s Onyx sues Cipla over generic Kyprolis
- NBCC India: Signs accord with government to redevelop 7 residential colonies in New Delhi for Rs 24.68 crore
- Reliance Industries: Signs $573 million term loans to fund ethane carriers
- Torrent Power: Seeks to buy 38 LNG cargoes over 4- years in tender
- Hexaware Technologies raised to neutral at Credit Suisse
- Idea Cellular cut to neutral from buy at Yes Research
- Asian Paints raised to hold from reduce at Reliance Securities
Earnings Reaction to Watch
- Bharti Airtel: Q2 net falls to Rs 1460 crore; estimate Rs 1,230 crore; to monetize significant stake in Infratel
- Crompton Greaves Consumer: Q2 profit Rs 54.96 crore versus Rs 2.53 crore loss
- Mahindra & Mahindra Financial: To raise funds up to Rs 9,000 crore; Q2 net falls to Rs 94.82 crore; estimate Rs 161 crore
- PI Industries: Q2 profit Rs 101 crore versus Rs 56.96 crore YoY
- Multi Commodity Exchange: Q2 profit Rs 37.65 crore versus Rs 30.59 crore
For a complete list of stocks to watch, click HERE
New Offerings
- Varun Beverages IPO opens, closes on October 28. Raised Rs 327 crore, selling 7.35 million shares to anchor investors at Rs 445 each Tuesday
- PNB Housing Finance IPO gets 20 percent demand for shares offered on first day sale Tuesday, Offer to close October 27
Talking Points
- Rupee passes Kiwi as target for Japanese fleeing negative rates
- Tata Sons names Ralf Speth, Chandrasekaran to board
- Cyrus Mistry, Tata Group file caveats against each other (PTI)
- VC pioneer bets $650 million on Indian startups surviving crash
- Indian lentil buyers renegotiate as prices slump on bumper crop
- Essar Steel to get 15b rupees investment from hedge fund (Economic Times)
- France’s Soufflet taps growing Indian beer market with buyout
- Global funds sell Rs 606 crore of local stocks; domestic funds buy Rs 389 crore: Provisional data
- Global funds add to Thailand, Indian bonds; cut Indonesian debt
Good Morning!
The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, declined 0.4 percent to 8,663.
Most Asian shares dropped and U.S. equity index futures fell this morning after Apple Inc., the world’s largest company, disappointed investors with its first annual sales decline since 2001.
Crude sank for a third day on speculation Russia won’t join planned output cuts being orchestrated by OPEC.
On Tuesday, U.S. stocks declined from a two-week high as mixed forecasts from industry giants and a slump in consumer confidence spurred concern over the outlook for the world’s largest economy.