KEY HIGHLIGHTS
Closing Bell: A Volatile Session
Indian equity markets closed the October F&O series on a subdued note, ending with losses for the second day in a row. The losses, however, were modest as compared to their other global peers.
The S&P BSE Sensex ended 0.43% lower at 39,749 while the NSE Nifty 50 index, after fluctuating between gains and losses, ended 0.5% lower at 11,670. Despite the losses of the last two sessions, the benchmark indices have gained over 8% for the entire series.
Among sectoral indices, which too had a volatile session, the Nifty Media index ended as the top sectoral laggard, ending 1.8% lower. The Auto and FMCG indices too saw cuts of 1% each. The Nifty Metal and Nifty Pharma indices fell 0.8% each
The Nifty I.T. index was the only sectoral gainer in today's trading session, ending with gains of 0.35%.
Broader markets had a mixed day. While the Nifty midcap index moved in-line with the benchmarks, ending 0.4% lower, the Smallcap index underperformed, ending with cuts of 0.8%.
Market breadth remained in favour of the laggards through the session. 1,169 stocks on the NSE ended with losses while 646 managed to buck the trend and end with gains.
Results Reported During Market Hours
How Did The Sectoral Indices Fare
Impact Of Cabinet Decisions
- The cabinet has approved new price for ethanol produced through Sugar juice at Rs 62.65 per litre.
- Ethanol B-Heavy will be priced at Rs 57.61 per litre.
- Ethanol C-Heavy will be priced at Rs 45.69 per litre.
Stock Reaction:
- Praj Industries: Shares recovered from the day's low to end 0.45% lower at Rs 77.6.
- Balrampur Chini: Shares ended 0.9% higher at Rs 163.7, up for the fifth straight day.
- The Cabinet has also approved extension of norms for mandatory packaging in jute materials.
- 100% of food grains and 20% sugar will have to be mandatorily packaged in jute bags.
Stock Reaction:
- Cheviot: Shares ended 8.4% higher at Rs 735.
- Ludlow Jute & Specialities: Shares ended 11.8% higher at Rs 89.7.
Earnings Reaction: Laurus Labs Q2FY21
- Revenue up 60% to Rs 1,138.8 crore
- Net profit up more than four times to Rs 242.3 crore
- Ebitda up 171% to Rs 373.8 crore
- Ebitda margin at 32.8% from 19.3%
- Formulations business saw growth of over 180% during the quarter led by higher LMIC business and new launches in various markets. The division now contributed ~40% to overall revenues.
- Generics API division saw growth of 22% during the quarter to Rs 571 crore
- Generics FDF business maintained robust growth momentum during the quarter to Rs 452 crore
- Contract manufacturing revenue from the European Union has a strong order book for FY21 and beyond
- Capacity enhancement of Generics FDF business under progress
- All numbers are consolidated and compared on a year-on-year basis
Shares ended 3.3% higher at Rs 333.25.
Earnings Reaction: Mahindra Holidays Q2FY21
- Revenue down 20% to Rs 185.8 crore
- Net profit up 88% to Rs 33.7 crore
- Ebitda up 21% to Rs 48.5 crore
- Ebitda margin at 26.1% from 17.2%
- Club Mahindra revenue down 16% to Rs 211.3 crore
- Holiday Club revenue down 7% to Rs 297.3 crore
- Higher other income contributes to net profit
- Other income at Rs 25.9 crore from Rs 16 crore
- Renegotiated with certain lessors on the rent reduction / waiver due to Covid-19 during the quarter, which is short-term in nature. Recognised Rs 12.4 crore as other income during the quarter from the same.
- All numbers are standalone and compared on a year-on-year basis
Shares gained as much as 6.4% to Rs 176, post the announcement, before cooling off.
Active Stock Options (November 26 Expiry)
- Reliance Industries' 2,000 Put: Premium down 5% to Rs 80. The contract has added 3.4 lakh shares in Open Interest.
- Axis Bank's 520 Call: Premium down 27.1% to Rs 18.5. The contract has added 4 lakh shares in Open Interest.
- ICICI Bank's 400 Call: Premium up 4% to Rs 22. The contract has added 9.7 lakh shares in Open Interest.
Earnings Reaction: Bank Of Baroda Q2FY21
- Net Interest Income up 7% to Rs 7,507 crore
- Net profit more than doubles to Rs 1,678.6 crore
- Gross NPA at 9.14% from 9.39% last quarter
- Net NPA at 2.51% from 2.83% last quarter
- Provisions down 47% from the previous quarter to Rs 3,001.6 crore
- Capital Adequacy Ratio at 13.26% from 12.98%
- CET-1 ratio at 9.21% from 9.84%
- Amount where asset qualification benefit is extended as on September 30 is Rs 14,022.5 crore
- Had certain accounts been classified as NPAs, the gross and net NPA would have been 9.33% and 2.67% respectively
- Made further provision worth Rs 195.2 crore for accounts that may be restructured
- Organic and Agriculture loans grew at 16.8% and 16.5% respectively
- Retail sanctions and disbursements at 119% of last year's level
- Domestic CASA ratio increased to 39.78%
- Domestic NIMs at 2.96% from 2.63% last quarter
- All numbers are standalone and compared year-on-year, until specified otherwise
Shares ended 1.8% higher at Rs 42.75.
Earnings Reaction: Havells India Q2FY21
- Revenue up 10% to Rs 2,451.8 crore
- Net profit up 80% to Rs 324.9 crore
- Ebitda up 80% to Rs 420.8 crore
- Ebitda margin at 17.2% from 10.5%
- Switchgears business revenue up 2% to Rs 370.3 crore
- Cables revenue down 4% to Rs 784.7 crore
- Lighting & Fixtures revenue up 4% to Rs 264.6 crore
- Electrical Consumer Durables revenue up 18% to Rs 579.9 crore
- Lloyd Consumer revenue up 56% to Rs 280.44 crore
- Lower advertising expenses contribute to better margins
- Advertising and sales promotion expenses down 74% to Rs 19.4 crore
- Higher other income contributes to profit growth
- Other income up 150% to Rs 79.2 crore
- Other income includes profit on sale of land and building in Greater Noida worth Rs 42.8 crore
- All numbers are standalone and compared on a year-on-year basis
Shares ended 1% lower at Rs 721.
Markets At 2:30 P.M.
- Markets volatile on F&O series expiry day
- Nifty down 0.8% at 11,632
- Sensex down 0.8% at 39,617
- Nifty Bank down 1.3% at 23,929
- Nifty Midcap index down 0.8%
- Nifty Smallcap index down 1.2%
- India Volatility Index up 4.1% to 24.2
- Nifty PSU Bank Index is the top sectoral laggard; down 1.7%
- Nifty Media, Nifty Metal down over 1.5% each
- Nifty Auto, Nifty FMCG and Nifty Realty index down 1% each
- Asian Paints remains the top Nifty gainer; up 2.6%
- Larsen & Toubro remains the top Nifty laggard; down 5.3%
- 39 out of the 50 Nifty stocks are declining
- 1,269 stocks on the NSE are declining while 539 trade with gains
Stock Reaction: Wonderla Holidays
The company has informed the exchanges that its theme park and resort in Bangalore will be reopening for business from November 9.
The first week of the reopening will be dedicated to frontline Covid-19 warriors and their families, who will be getting free passes,the company said in a statement.
The park will be exclusively open only for them, until ovember 12.
The park will open to common public from November 13, only on Fridays to Sundays at a reopening price of Rs 699, inclusive of GST until the end of the month.
The theme park's capacity will be restricted to 3,000 per day, in order to follow social distancing protocols.
Shares gained as much as 8% to Rs 164.7, post the announcement.
Earnings Reaction: Maruti Suzuki Q2FY21
- Revenue up 10% to Rs 18,744 crore
- Net profit up 1% to Rs 1,371 crore
- Ebitda up 20% to Rs 1,933 crore
- Ebitda margin at 10.3% from 9.5%
- Sales in the domestic market was up 18.6% to 3.7 lakh units
- High sales volumes lead to improved capacity utilisation
- Lower sales promotion and adversiting expenses improve margins
- All numbers are standalone and compared on a year-on-year basis
Shares ended 1.4% lower at Rs 7,084.
Money Market Update
The currency ended lower for the second day in a row, at its lowest level in two months.
The rupee ended at 74.11 against the U.S. Dollar, as compared to Wednesday's close of 73.87. It saw an intraday low of 74.17 while the highest point of the day was 73.94.
Today's losses made rupee the worst performing currency in Asia.
Earnings Reaction: BPCL Q2FY21
- Revenue up 29% to Rs 50,146.4 crore
- Net profit up 8% to Rs 2,247.7 crore
- Ebitda down 2% at Rs 3,851.1 crore
- Ebitda margin at 5.8% from 7.7%
- Refinery throughput up 10% to 5.63 MMT
- Market sales up 19% to 8.94 MMT
- Average GRM during H1FY21 at $3.19 per barrel
- Lower refinery throughput and revenue from operations during H1FY21
- All numbers are standalone and compared on a quarter-on-quarter basis
Shares ended 0.7% lower at Rs 343.
A Volatile Session For The Nifty Bank
Earnings Reaction: Arvind Q2FY21
- Revenue down 33% to Rs 1,305.2 crore
- Net loss of Rs 5.9 crore from Net profit of Rs 49.7 crore
- Ebitda down 28% to Rs 121.5 crore
- Ebitda margin at 9.3% from 9.9%
- Exceptional loss of Rs 22.34 crore this quarter owing to retrenchment compensation and provision for impairment / loss on sale of investments / share application money
- Textiles business revenue down 39% to Rs 1,011.4 crore
- Advanced Material revenue flat at Rs 185.8 crore
- Expect short-term challenges in operating environment
- Undertaken various cost containment initiatives which will yield results in the medium-to-long term
- Expect to attain pre-Covid levels of performance in 3-6 months
- Denim volumes have recovered to around 80% of Q2 levels last year
- Woven volumes at ~60% and garment volumes at 66% of Q2 levels last year
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 2.8% to Rs 33.15, post the announcement, before a recovery from the day's low. The stock is down for the third straight day.
F&O Snapshot: Active Options Contract
- Nifty November futures add 36.6% and 24.6 lakh shares in Open Interest.
- Nifty Bank November futures add 28.7% and 3.4 lakh shares in Open Interest.
Nifty: November 5 Expiry
- 11,800 Call: Premium down 17.2% to Rs 118.6. The contract has added 2.2 lakh shares in Open Interest.
- 11,700 Call: Premium down 12.2% to Rs 169.3. The contract has added 4 lakh shares in Open Interest.
- 11,600 Put: Premium up 14.5% to Rs 143.7. The contract has added 2 lakh shares in Open Interest.
Nifty Bank: November 5 Expiry
- 24,500 Call: Premium down 30.5% to Rs 360.5. The contract has added 1.2 lakh shares in Open Interest.
- 24,000 Put: Premium up 14% to Rs 633.5. The contract has added 64,425 shares in Open Interest.
- 25,500 Call: Premium down 43.4% to Rs 112.9. The contract has added 67,950 shares in Open Interest.
Earnings Reaction: Tata Coffee Q2FY21
- Revenue up 13% to Rs 543.4 crore
- Net profit up 6% to Rs 42.4 crore
- Ebitda up 12% to Rs 88.7 crore
- Ebitda margin at 16.3% from 16.5%
- Deferred tax gain of Rs 6.2 crore in the base quarter
- Plantations business revenue up 23% to Rs 96.6 crore
- Value Added Products revenue up 11% to Rs 451.2 crore
- Robust operating performance from Eight O'Clock Coffee aided by higher sales realisations and favourable channel mix
- Dividend received from overseas subsidiary during the quarter at Rs 18 crore
- See slowness in short-term demand especially in the 'out of home' consumption
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 6.5% - the most in two months to Rs 102.2, down for the second day in a row.
How Are The Sectoral Indices Faring
Earnings Reaction: Strides Pharma Q2FY21
- Revenue up 11% to Rs 797.1 crore
- Net profit down 46% to Rs 77 crore
- Exceptional gain of Rs 13.1 crore in the current quarter
- Ebitda up 10% to Rs 165.6 crore
- Ebitda margin at 20.8% from 21%
- Forex gain of Rs 4.8 crore this quarter
- U.S. business revenue up 7% to Rs 404.7 crore
- Africa business revenue more than doubles to Rs 83.6 crore
- Other regulated markets revenue up 7% to Rs 238.6 crore
- Strong order book visibility continues across key markets
- Emerging markets contribute 19% to overall consolidated revenues
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 4.3% to Rs 717 post the announcement.
Buzzing Stock: Lakshmi Machine Works
- Among top performers on the Nifty 500 index
- Gains as much as 3.8% to Rs 4,154
- Trading at the highest level since August 2019
- Up for the second straight day
- Has gained in three out of the last four trading sessions
- Today's volumes are nearly triple its 20-day average
- Trading above all key Daily Moving Averages
- Stock heading towards overbought territory with Relative Strength Index (RSI) at 68
- Has doubled from its 52-week low of Rs 2,000 on March 25, 2020
- Return potential of the stock as per Bloomberg data is 14.7%
Earnings Reaction: MCX Q2FY21
- Revenue up 8% to Rs 106.3 crore
- Net profit down 29% to Rs 44.4 crore
- Ebitda up 13% to Rs 49.8 crore
- Ebitda margin at 46.8% from 44.7%
- Commodity derivatives market share in H1FY21 at 97.05%
- All numbers are standalone and compared on a year-on-year basis
Shares fell as much as 4% - the most in a month to Rs 1,695. The stock is declining for the third day in a row.
Media Stocks Among Top Laggards
Markets At Noon
- Benchmark indices recover from day's low
- Nifty down 0.2% at 11,708
- Sensex down 30 points at 38,891
- Nifty Bank unchanged at 24,220
- Nifty Midcap index down 0.5%
- Nifty Smallcap index down 0.8%
- India Volatility Index up 2.2% to 23.78
- Nifty Media extends losses as the top sectoral laggard; down 1.8%
- Nifty PSU Bank index is the other major laggard; down 1%
- Nifty Metal, Nifty Auto index down 0.7% each
- Asian Paints remains the top Nifty gainer; up 2.1%
- Larsen & Toubro remains the top Nifty laggard; down 3.9%
- 1,167 stocks on the NSE trade with losses while 572 are trading with gains
Buzzing Stock: Neuland Laboratories
- Among top performers on the BSE Smallcap index
- Gains as much as 8.5% to Rs 1,214.4
- Biggest single-day gain in a month
- Snaps three-day losing streak
- Today's volumes are 36% higher than its 20-day average
- Took support and bounced from its 50-Day Moving Average of 1,100.3
- Relative Strength Index (RSI) of the stock at 52.6
- Trading 7.5% below its 52-week high of Rs 1,312.3 on October 12, 2020
- Two of the three analysts tracking the stock have a buy recommendation; 0 sell calls
- The stock trades 23% higher than its 12-month consensus price target of Rs 910.5, implying a negative return potential
Stock Reaction: Cadila Healthcare
Zydus Cadila has received tentative approval from the U.S. FDA to market Linagliptin Tablets, 5 mg.
Linagliptin is 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 SEZ, Ahmedabad, it said in an exchange filing.
Shares are currently trading off the day's low, but down 0.8% at Rs 415. The stock is down for the second day in a row.
Stock Reaction: Dr Reddy's Laboratories
The drugmaker announced its partnership with Biotechnology Industry Research Assistance Council of the Government of India for advisory support on clinical trials of the Sputnik V vaccine in India.
The partnership will allow Dr Reddy's to identify and use some of BIRAC's clinical trial centers for the vaccine, which are funded under the National Biopharma Mission. It will also get access to Good Clinical Laboratory Practice (GCLP) labs to conduct immunogenicity assay testing of the Vaccine.
The company along with Russia's Direct Investment Fund got an approval from the DCGI to conduct an adaptive phase 2/3 human clinical trial for the Sputnik V vaccine in India.
Shares gained as much as 1.8% to Rs 5,041.6, post the announcement. Most brokerages have raised their price targets on the stock post its second quarter results.
Earnings Reaction: ICICI Securities Q2FY21
- Revenue up 63.2% to Rs 680.7 crore
- Net profit up 2.1 times to Rs 278.2 crore
- Broking income up 82% to Rs 392 crore
- Equities and allied revenue up 88% to Rs 450 crore - the highest ever
- Active clients up 17% to 1.56 million - the highest ever
- Private Wealth Management revenue up 86% to Rs 101 crore
- Declares interim dividend of Rs 8 per share
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 4.8% - the most in three months to Rs 461.3. The stock has snapped a three-day gaining streak.
Stock Reaction: Piramal Enterprise
The company's subsidiary Piramal Pharma has approved the acquisition of an additional 3.43 crore equity shares of Convergence Chemicals from Navin Fluorine.
The acquisition will be done for a cash consideration of Rs 65.10 crore, post which, CCPL will become a wholly-owned subsidiary of Piramal Pharma.
The acquisition is subject to customary regulatory approvals and is likely to be completed by January 31, 2021.
In a separate filing, Piramal Enterprises said that three of its independent directros of the board have resigned from October 28 and that it had appointed two new independent directors to the board on October 14.
Shares fell as much as 4.6% to Rs 1,225, down for the fourth straight day. This is the longest losing streak for the stock in a month and it is the worst performer on the Nifty Next 50 index.
Earnings Reaction: Navin Fluorine Q2FY21
- Revenue up 17% to Rs 319 crore
- Net profit up 38% to Rs 64.4 crore
- Ebitda up 33% to Rs 90.8 crore
- Ebitda margin at 28.5% from 25%
- 65% contribution to revenue from high business in Q2FY21
- Total revenue returning back to normal in the quarter
- Legacy business volumes were lower due to weak demand from the end users due to Covid-19
- Specialty chemicals business has shown sustained growth
- CRAMS business revenue up to Rs 99 crore from Rs 47 crore last year
- Inorganic Fluorides business has shown an upward trend as compared to the last quarter
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 7% to an all-time high of Rs 2,270. It is the top gainer on the Nifty Midcap index.
Buzzing Stock: Sonata Software
- Worst performing stock on the Nifty Smallcap Index
- Declines as much as 6.3% to Rs 326
- Biggest single-day fall in a month
- Trading at the lowest in three weeks
- Has declined in three out of the last four trading sessions
- Down 11% in the last four trading sessions
- Today's volumes are 23% higher than its 20-day average
- Looking for support at its 50-Day Moving Average of 328 on the downside
- Relative Strength Index (RSI) of the stock at 46
- Down 13% from its 52-week high of Rs 378.7 on October 23, 2020
- Six out of the eight analysts tracking the stock have a buy recommendation; 0 sell calls
- Return potential of the stock as per Bloomberg data is 19.2%
Earnings Reaction: PI Industries Q2FY21
- Revenue up 27.6% to Rs 1,157.7 crore
- Net profit up 76.6% to Rs 217.6 crore
- Ebitda up 45.5% to Rs 280.1 crore
- Ebitda margin at 24.2% from 21.2%
- Exports up 25% during the quarter with proactive raw material inventory management.
- Demand for key commercialised molecules remains strong.
- Domestic revenues rose 33% with additional contribution from Isagro brand sales
- Net working capital to sales improved to 5.34 from 4.69
- 18 new patent applications filed during H1FY21
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 5% to Rs 2,220.2, before cooling off. At the highest point of the day, shares traded at a record high.
Stock Reaction: Hindustan Aeronautics & Tech Mahindra
Hindustan Aeronautics and Tech Mahindra have signed a contract worth Rs 400 crore for implementation of Enterprise Resource Planning (ERP) to support HAL's 'Project Parivartan.'
'Project Parivartan' will enable HAL to adopt some of the best practices in some of the similar industries globally, the defence player said in an exchange filing.
Tech Mahindra will be responsible for the transformation and modernisation of the ERP system. It will implement 'Project Parivartan' over a period of nine years.
Tech Mahindra will transform the distributed application to a centralized application, for all the 20 divisions and R&D Centers of HAL based on a business transformation engineering process.
Shares of Hindustan Aeronautics are off the day's low, currently trading 0.4% lower at Rs 698.75.
Shares of Tech Mahindra are off the day's low, gaining as much as 1.2% to Rs 799, post the announcement.
Stock Reaction: Pidilite Industries
The board of the company has approved a definitive agreement with U.S.-based Huntsman Group to acquire 100% stake in one of its subsidiaries in India - Huntsman Advanced Material Solutions.
The acquisition will be done at a cash consideration of approximately Rs 2,100 crore, excluding customary working capital and other adjustments, the company said in an exchange filing.
Huntsman will receive approximately 90% of the cash consideration at closing and the other 10% under an earnout within 18 months if the business achieves sales, revenue in-line with 2019.
The transaction is expected to close by next week, subject to certain pre-conditions being met prior to closing.
Shares gained as much as 3.2% to Rs 1,568, post the announcement. The stock is trading at the highest level in seven months.
Markets At 10:10 A.M.
- Benchmark indices volatile on expiry day trade
- Nifty down 0.35% at 11,689
- Sensex down 0.3% at 39,804
- Nifty Bank down 0.4% at 24,131
- Nifty Midcap index down 0.3%
- Nifty Smallcap index down 0.7%
- India Volatility Index up 1.2% to 23.56
- Nifty Media is the top sectoral laggard; down 1.2%
- Nifty I.T. and Nifty Pharma are the only sectoral gainers; up 0.4% and 0.1% respectively
- Nifty PSU Bank and Nifty FMCG index down 0.8% each
- Asian Paints is the top Nifty gainer; up 1.6%
- L&T is the top Nifty laggard; down 4.3%
- 1,112 stocks on the NSE are trading with losses while 549 are gaining
Money Market Update
The rupee has opened at its lowest level in two months, continuing with the weakness in the equity markets and a risk-off sentiment across other Emerging Markets.
The currency opened at 74.04 against the U.S. Dollar, as compared to Wednesday's close of 73.88. It was the second worst performer in Asia on Wednesday.
Within the bond markets, traders will await fiscal deficit data for the April-September period.
The Reserve Bank of India also plans to buy government bonds worth Rs 20,000 crore through Open Market Operations today.
Bloomberg Economics expects the RBI to keep the policy repo rate on hold at its December review and then make a 50 basis points cut in February.
Earnings Reaction: Saregama India Q2FY21
- Revenue down 31% to Rs 108.1 crore
- Net profit up 49% to Rs 28.9 crore
- Ebitda up 53% to Rs 36.8 crore
- Ebitda margin at 34% from 15%
- Lower advertising and other expenses contribute to better margins
- Advertising and Sales promotion expenses down to Rs 6.94 crore from Rs 26.23 crore
- Other Expenses down to Rs 16 crore from Rs 18.8 crore
- Music business revenue down 21% to Rs 100 crore
- Films and TV serials revenue down 76% to Rs 6.64 crore
- Latent need for Caravan is rising since the lockdown
- Caravan sales up to 81,000 in Q2 from 15,000 in Q1
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 9.3% - the most in two months to Rs 681.8. The stock is trading at the highest level in over two years. The stock has gained in six out of the last seven trading sessions, during which it has risen nearly 20%.
Stock Reaction: Ajanta Pharma
The company informed the exchanges on Wednesday that its board will consider a proposal for buyback of equity shares at its meeting on November 3.
That will also be the day when the company declares its quarterly earnings for the July-September period.
Shares gained as much as 5.7% - the most in three months to Rs 1,683. At the highest point of the day, the stock traded at a two-month high. It is up for the second straight day.
Coronavirus India Update
- New cases detected rise for the second straight day
- 49,881 new cases reported over the last 24 hours
- Total confirmed cases now at 80,40,203
- Active cases continue to decline
- Active cases now at 6,03,687
- Patients cured / discharged / migrated at 73,15,989
- Death toll rises to 1,20,527
- 517 deaths reported over the last 24 hours
- 56,480 patients recovered over the last 24 hours
Earnings Reaction: Larsen & Toubro Q2FY21
- Revenue down 12.2% to Rs 31,034 crore
- Net profit before exceptional item down 41.8% to Rs 1,462.8 crore
- Including the exceptional item, the net loss stands at Rs 2,322.1 crore
- Exceptional cost of Rs 3,732.3 crore this quarter, due to impairment of funded exposure in heavy forgings facility JV and impairment of assets in the power development business
- Ebitda down 12% to Rs 5,318.7 crore
- Ebitda margin flat at 17.1%
- Orders in Q2 down 42% to Rs 28,039 crore
- Order book down 1.4% to Rs 2,98,856 crore
- Infrastructure business revenue down 20% to Rs 13,095 crore
- Power business revenue up 40% to Rs 688.7 crore
- Heavy Engineering business revenue flat at Rs 708 crore
- Hydrocarbon business revenue down 6% to Rs 4,049 crore
- Defence Engineering revenue down 20% to Rs 768.8 crore
- Declares special dividend of Rs 18 per share
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 4.3% to Rs 940.6 and has snapped a nine-day gaining streak.
Opening Bell: Expiry Day Jitters
Indian equity markets have opened lower for the second straight day, dragged down by weak global cues and volatility pertaining to the F&O series expiry.
The S&P BSE Sensex opened 1% lower at 39,537 while the NSE Nifty 50 index has opened below the mark of 11,650 - down 0.8% at 11,633.
All Sectoral indices have opened with losses. The Nifty Auto and Nifty Media index have both opened lower by 1%. The FMCG and Metal indices are witnessing losses of 0.8% at the start of trade. Other indices are trading with a negative bias.
Broader markets too have opened lower. The Nifty Midcap index is down 0.6% while the Smallcap index shed 1% at the start of trading.
1,031 stocks on the NSE have opened with losses while 406 are trading with gains.
Current Market Update
Trading Ideas For The Day
- Nifty: Sell 12,000 Call of the November 5 expiry in the range of Rs 63-65 for target of Rs 48-38 and stop loss of Rs 79.
- Nifty Bank: Buy in the range of 24,000-24,050 for target of 24,200-24,300 and stop loss of 23,900
- Buy Colgate-Palmolive October futures for target of Rs 1,530.9 and Rs 1,550.1 with a stop loss of Rs 1,505.1
- Sell M&M Financial October futures for target of Rs 118.3 and Rs 113.5 with a stop loss of Rs 124.7
- Colgate and M&M Financial are intraday recommendations
Source: ICICI Direct
How Did The Fund Flows Fare On Wednesday
Key Stocks In Focus
- Cipla: Announced commercialisation of the antibody detection kits for Covid-19 in India, in partnership with KARWA Ltd. Cipla will market and distribute the testing kit that will be manufactured by KARWA Ltd.
- Ajanta Pharma: To consider share buyback on November 3.
- HUDCO: Achieved loan sanctions worth Rs 2,628.2 crore and loan releases worth Rs 3,411.8 crore as on September 30, 2020.
- Pidilite: Board approves definitive agreement with Huntsman Corporation to acquire 100% stake in one of their subsidiaries Huntsman Advanced Materials Solutions for a cash consideration of Rs 2,100 crore. The transaction does not require government approval and is expected to be completed in a few days.
- GSK Pharma: Post the global voluntary recall of Zinetac, the company has decided to proceed with the sale of its manufacturing site at Vemgal and has classified the assets as 'held for sale.'
- PNB Housing: To get capital infusion worth Rs 600 crore from Punjab National Bank. Also approves fund raising worth Rs 1,800 crore through preferential issue, rights issue.
- HSIL: Board approves setting up a specialty glass facility to meet the packaging requirements of segments like pharma, including vials, perfumery and other cosmetics along with high-end liquor. The facility will have a capacity of 150 tonnes per day and will be set up at a cost of Rs 220 crore. It will also expand the capacity of its pipes business to 48,000 tonnes per annum from the current 30,000 tonnes per annum at a total cost of Rs 100 crore.
- Nifty Earnings Today: Maruti Suzuki, BPCL
- Non-Nifty Earnings Today: Aavas Financiers, Aegis Logistics, Apollo Pipes, Bank of Baroda, Canara Bank, Blue Dard, Havells India, InterGlobe Aviation, Laurus Labs, JK Paper, MRPL, Orient Cement, Strides Pharma, Tata Chemicals, TVS Motor, Vodafone Idea, Zensar Technologies
To know more about key stocks in focus, earnings reported after market hours, brokerage updates and F&O cues, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
October F&O Series Expiry Today
Good Morning!
Barring volatility in the last few days, it has been a good October series for India's equity markets. Both S&P BSE Sensex and NSE Nifty 50 have gained more than 6% each during this series.
Futures, however, indicate that equities may extend Wednesday's losses amid expiry day volatility. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.5% to 11,669 as of 8:00 a.m. on Thursday.
The street will watch out for Nifty constituents like L&T, Hero MotoCorp and Axis Bank that reported their quarterly results after market hours yesterday. A host of broader market stocks such as RBL Bank, PI Industries, Can Fin Homes, PNB Housing Finance, ICICI Securities and Navin Fluorine, among others, will also remain in focus.
Two Nifty 50 companies — Maruti Suzuki and Bharat Petroleum Corp. — will declared their financials today, along with non-Nifty stocks like Bank of Baroda, Canara Bank, Havells, IndiGo, Laurus Labs, Shriram Transport Finance, TVS Motor Co., among others.
Globally, Asian markets continue to tumble lower this morning, though the losses were modest compared to those seen on Wall Street. Futures on the Dow Jones are trading 240 points higher after the gauge fell 3.4% overnight.
West Texas Intermediate crude is up 0.7% to $37.66 per barrel after an overnight drop of 5%.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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