KEY HIGHLIGHTS
BQ Live
Closing Bell: Sensex, Nifty Decline On First Full Trading Session Of Samvat 2075
Indian equity benchmarks declined on first full trading session of Samvat 2075 paced by losses in Bharti Airtel, Infosys, TCS and Reliance Industries.
The S&P BSE Sensex fell 0.22 percent or 79 points to 35,159 and the NSE Nifty 50 Index declined 0.12 percent or 13 points to 10,585.
Nine of 19 sector gauges compiled by BSE ended lower led by the S&P BSE IT Index's 1.2 percent drop. On the other hand, the S&P BSE Healthcare Index was the top gainer, up 1.08 percent.
Mid- and small-cap shares witnessed buying interest as the S&P BSE MidCap Index rose 0.7 percent and the S&P BSE SmallCap Index climbed 0.6 percent.
Ashok Leyland Extends Decline After Block Deal
- Ashok Leyland has 10.5 lakh shares change hands in a single block. Stock down 2.7 percent at Rs 118.45.
Buyers and sellers were not immediately known
Source: Bloomberg
PC Jeweller Reverses Losses On Heavy Volumes
Shares of the Delhi-based jewellery retailer reversed losses and rose as much as 7.49 percent to Rs 89.65 on the back of heavy volumes.
Trading volume was 2.3 times its 20-day average, according to data compiled by Bloomberg.
As many as 54.88 lakh shares were traded on the National Stock Exchange, according to information on NSE website.
Amara Raja Declines Despite Profit Meeting Estimates In Q2
Shares of the Tirupati-based battery maker fell as much as 2.46 percent to Rs 760 after its net profit fell 5.5 percent on a yearly basis to Rs 120.2 crore during the July-September period.
Key earnings highlights (Q2, YoY)
- Net profit down 5.5 percent at Rs 120.2 crore versus estimate of Rs 118 crore.
- Revenue up 22.8 percent at Rs 1,753 crore.
Dr. Reddy's Labs Drops On Repeat Observations For Duvvada Plant
Shares of the Hyderabad-based drug maker fell as much as 2.61 percent to Rs 2,389 after it received eight observations, five of them a repeat of 2017 and warning letter of 2015, from the U.S. drug regulator at its Duvvada facility—crucial for future growth prospects in its largest market.
The observations were issued after an audit of the injectable plant starting Oct. 23. BloombergQuint has obtained a copy of the form 483 issued by the U.S. Food and Drug Administration to India’s fifth-largest pharma company by sales.
Equity Mutual Funds See Highest Inflow Since February 2018
Indian equity mutual funds saw inflows of around Rs 15,000 crore in October which was highest since February 2018, according to data released by Association of Mutual Funds of India (AMFI).
Total mutual fund inflows stood at Rs 35,530 crore in October.
Government's Fiscal Math Completely On Track, Says Economic Affairs Secretary
Government's fiscal math is completely on track and there has been no proposal to ask the Reserve Bank of India to transfer funds, Subhash Chandra Garg, secretary at the department of economic affairs, said in a tweet.
He added that there are a lot of misinformed speculations in media.
Indian Bank Drops After Profit Declines, Asset Quality Worsens In Q2
Shares of the Chennai-based public sector lender fell as much as 6.80 percent to Rs 243.80 after its net profit declined on account of higher provisioning and asset quality worsened in September quarter earnings.
Key earnings highlights:
- Net interest income up 12 percent at Rs 1,731 crore versus Rs 1,544 crore (YoY)
- Net profit down 67 percent at Rs 150 crore versus Rs 451.54 crore (YoY)
- Gross non-performing assets as a percentage of total advances at 7.16 percent versus 7.20 percent (QoQ)
- Net non-performing assets as a percentage of total advances at 4.23 percent versus 3.49 percent (QoQ)
- Provisions for bad loans at Rs 752.48 crore versus Rs 456.59 crore (QoQ)
Market Check: Sensex, Nifty Subdued; IT Stocks Underperform
Indian equity benchmarks were trading with a negative bias weighed down by weakness in IT, metal and telecom stocks.
The S&P BSE Sensex fell 0.12 percent or 42 points to 35,196 and the NSE Nifty 50 Index declined 0.1 percent or 10 points to 10,588.
Ten of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE IT Index's 1.2 percent fall. On the other hand, the S&P BSE Consumer Durables Index was top gainer, up 0.7 percent.
Gayatri Projects, 8K Miles Software Among Stocks Moving On Heavy Volumes
- Linde India: The Kolkata-based chemical company rose as much as 19 percent to Rs 578 on delisting proposal by the founder group. Trading volume was 46 times its 20-day average.
- Gayatri Projects: The Hyderabad-based infrastructure construction company rose as much as 1.6 percent to Rs 184.50. Trading volume was 7.7 times its 20-day average.
- 8K Miles Software: The Chennai-based software developer rose as much as 5 percent to Rs 93.10. Trading volume was six times its 20-day average.
- Mahindra Logistics: The Mumbai-based logistics company declined as much as 1.83 percent to Rs 520. Trading volume was seven times its 20-day average.
India Cements Rises As Revenue Meets Estimates In Q2
Shares of the Chennai-based cement maker rose as much as 4.31 percent to Rs 98.10 after its revenue met Bloomberg consensus estimates in September quarter.
Key earnings highlights:
- Net profit fell 94 percent to Rs 1.43 crore versus estimate of Rs 5.76 crore
- Revenue rose 9.4 percent to Rs 1,387 crore versus estimate of Rs 1,330 crore
South Indian Bank Holds Gains After Block Deal
- South Indian Bank has 11.3 lakh shares change hands in a block deal. Stock up 2.3 percent at Rs 15.50.
Buyers and sellers were not immediately known
Source: Bloomberg
F&O Check: Nifty Bank 26,000 Call Option Contract Most Active On NSE
Nifty Bank's 26,000 call option contract was among the most active option contracts on the National Stock Exchange.
Premium on the contract rose 0.4 percent to Rs 107. Over 2.66 lakh shares were added to the open interest which stood at over 8.20 lakh shares.
Click here for complete options chain
Oil Retailers Gain As Crude Declines To $70/Barrel
Shares of oil marketing companies advanced after Brent crude prices declined 2 percent to $70.65 in yesterday's session.
- Indian Oil rose 2 percent to Rs 142
- HPCL advanced 2.4.44 percent to Rs 240
- BPCL gained 2.15 percent to Rs 295
Passenger Car Sales Rise 0.4% YoY In October: SIAM Data
Passenger car sales rise 0.4 percent YoY in October to 1.85 lakh units, data released by Society of Indian Automobile Manufacturers (SIAM) showed.
October auto sales
- Passenger vehicles: 2.84 lakh units, up 1.55% YoY
- Commercial vehicles: 87,147 units, up 24.82% YoY
- Three wheelers: 69,483, Up 12.86% YoY
- Two wheelers: 20.53 lakh units, up 17.23% YoY
Titan Rises Ahead Of September Quarter Earnings
Shares of the Bengaluru-based watch and jewellery retailer rose as much as 1.12 percent to Rs 860 ahead of its September quarter earnings. A poll of analysts tracked by Bloomberg expect Titan to report net profit of Rs 367 crore, up 20 percent.
Earnings preview (Standalone Q1, YoY):
- Net sales seen up 22.6 percent at Rs 4,143 crore versus Rs 3,378 crore
- Ebitda seen up 24.3 percent at Rs 421 crore versus Rs 523 crore
- Margin at 12.6 percent versus 12.5 percent
- Profit seen up 20.3 percent at Rs 367 crore versus Rs 305 crore
Hero MotoCorp Rises On Launching New Bike
Shares of the country's largest two-wheeler maker rose as much as 2.3 percent to Rs 2,956 after it launched new premium motorcycle ‘Xpulse 200T’.
The XPulse 200T is a ‘Tourer’ that offers customers modern technology in retro styling. Built to inspire touring, the XPulse 200T offers easy and comfortable riding posture thanks to its focus on ergonomics, and loading capability with its large luggage plate, Hero MotoCorp said in a press release.
Quality NBFCs With Disciplined Approach Look Good: Bharat Shah
Bharat Shah of Ask Group told BloombergQuint that he is not too bothered by the current state of markets and added that 15-20 percent correction should be expected from markets after every few years.
Key highlights of the conversation:
- Not too bothered by current state of markets
- Good time to buy quality stocks
- Remain bullish over equities; fundamentals remain strong
- See more opportunities than challenges
- Fairly confident that fiscal deficit will be curtailed to the targeted level
- Comfortable with the way earnings have shaped up so far
- Quality NBFCs with disciplined approach look good
- Consumption durable and non-durables stock remain good bets
- Quality banks and quality insurance companies serve as great opportunities
- Auto sector too looks very attractive
- Agri based companies to do extremely well in the near term
Linde India Surges As Founder Group Seeks To Delist Shares
Shares of the Kolkata-based chemical company rose as much as 20 percent, the most in over five years, to Rs 582.65 after its founder BOC Group sought for proposal to delisting of shares.
- Founder group requested board to consider delisting shares
- Board to consider delisting proposal from founder on Nov. 14
Dredging Corp Surges After Cabinet Clears Proposal To Sell Its Entire Stake
Shares of the Visakhapatnam-based dredging company were locked in a ten percent upper circuit at Rs 384.10 after the cabinet cleared proposal to sell its entire stake in the company.
The Union Cabinet on Thursday approved strategic sale of government stake in Dredging Corporation of India Ltd. to consortium of four ports.
The government currently holds 73.44 percent in DCIL.
"Cabinet Committee on Economic Affairs has given in principle approval for strategic disinvestment of 100 percent Government of India's share in DCIL to consortium of 4 ports, namely Vishakhapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust and Kandla Port Trust," an official tweet said.
Bharti Airtel Drops After Moody's Places Its Ratings On Review For Downgrade
Shares of the country's second largest wireless telecom operator fell as much as 5.21 percent, the most since Oct. 25, to Rs 290 after credit ratings agency Moody's Investors Service placed Bharti Airtel Ltd.’s rating on review for downgrade, following low levels of profitability and expectations of weak cash flow.
The Baa3 issuer and senior unsecured rating of the company has been placed on review for a cut, the U.S.-based agency said in a statement on Thursday. Baa3 is the lowest investment-grade bond ratings, and any downgrade would put the rating in speculative grade.
Opening Bell: Sensex, Nifty Decline Paced By Losses In Bharti airtel, HDFC
Indian equity benchmarks declined paced by losses in Bharti Airtel, HDFC, Infosys and JSW Steel.
The S&P BSE Sensex fell as much as 0.64 percent or 226 points to 35,011 and the NSE Nifty 50 Index declined 0.51 percent or 54 points to 10,545.
Fifteen of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Telecom Index's 1.2 percent drop. On the flipside, the S&P BSE Oil & Gas Index was top gainer, up 0.3 percent.
Mid- and small-cap shares were trading on a muted note as both the indices were little changed.
Rupee Opens Higher At 72.71/$
Rupee opened higher at 72.71 per dollar against previous close of 73.00.
The local unit rose as much as 0.47 percent or 34 paise to 72.66.
Brokerage Radar: Q2 Review Of Phoenix Mills, Voltas And More!
On Phoenix Mills
CLSA
- Maintained ‘Buy’; cut price target to Rs 725 from Rs 766
- Strong September quarter; lease income, consumption climb on good mall performance.
- New project construction to gather pace by March 2019.
- Cut price target to adjust for rising interest rate.
HSBC
- Maintained ‘Buy’; hiked price target to Rs 800 from Rs 770.
- Rental income and consumption from its malls grew strongly.
- Expect five-year rental CAGR at 17 percent led by upcoming and existing malls.
- Residential segment recorded an uptick in sales, but still remains below estimates.
On Voltas
CLSA
- Maintained ‘Sell’; cut price target to Rs 465 from Rs 480.
- Weak September quarter; biggest fall in AC margins in six years.
- Aggressive pricing, warranties, commodity and forex impacted margins.
- Stock not ready for any negative surprises like the first half.
Jefferies
- Maintained ‘Buy’; cut price target to Rs 715 from Rs 750.
- Cooling segment seen confluence of negatives for cooling segment.
- Engineering segment beaten sharply on execution and margins.
- Management indicated that the margins of 11 percent during the first half are representative of 2018-19.
More Calls
CLSA on Dr Lal Pathlabs
- Maintained ‘Buy’ with a price target of Rs 1,320.
- Volume growth remains strong, but pricing saw de-growth due to expansion and promotions.
- Kolkata operations have stabilised now and growth well ahead of company growth.
- Volume remains single point focus which is the right strategy.
CLSA on Century Ply
- Maintained ‘Buy’; cut price target to Rs 210 from Rs 310.
- Crude, rupee depreciation, MDF competitive intensity impacted September quarter margins.
- Believe worst is now behind with hedged borrowings and price hikes.
- Cut estimates to factor in forex losses, lower margins and higher tax rate.
Cipla, Dr. Lal Pathlabs To Meet Investors Starting Today
Who’s Meeting Whom
- Pidilite Industries to meet Newport Asia on Nov. 12.
- Cipla to meet State Street Global Advisors, Northcape Capital and other investors from Nov. 09-22.
- Asian Paints to meet Newport Asia on Nov. 12.
- Dr. Lal Pathlabs to meet Ward Ferry, Fidelity International and other investors from Nov. 09-16.
F&O Cues: Maximum Open Interest For Call At Nifty 11,000 Strike Price
- Nifty November futures closed trading at 10,614, premium of 16 points
- Nifty November OI up 0.8 percent; Nifty Bank November OI up 1.2 percent.
- Maximum open interest (OI) for November series at 11,000 Call, OI at 26.7 lakh shares.
- Maximum OI for November series at 10,000 Put, OI at 51.4 lakh shares.
Bulk Deals And Insider Trades To Watch
- Info Edge: Aranda Invest (Mauritius) sold 15 lakh shares or 1.23 percent at Rs 1,370.04 each
- Sangam Renewables: Altius Capital Fund sold 57,000 shares or 0.57 percent equity at Rs 18.95 each.
Uniply Industries
- Promoter Foundation Outsourcing India sold 11 lakh shares or 0.77 percent at Rs 61.87 each.
- Caishen Enterprise acquired 11 lakh shares 0.77 percent at Rs 61.87 each.
Insider Trades
- HCL Technologies promoter Vama Sundari Investments acquired 5.7 lakh shares on Nov. 02.
- Chambal Fertilisers & Chemicals promoter Hindustan Times acquired 1.2 lakh shares from Nov. 02-06.
- Apar Industries promoters acquired 1.2 lakh shares on Nov. 05.
- Meghmani Organics promoters acquired 7 lakh shares from Nov. 02-05.
- Eros International Media promoter Eros Worldwide acquired 82,700 shares on Nov. 06.
(As reported on Nov. 06)
Earnings Reactions To Watch: MRF, Manappuram Finance, Aban Offshore And More!
Aditya Birla Capital (Q2, YoY)
- Revenue up 33.1 percent at Rs 3,590.5 crore.
- Net profit down 12 percent at Rs 197.9 crore.
- Fees & Commission Expense at Rs 181.2 crore versus Rs 67.7 crore.
- Premium up 39 percent at Rs 1,657 crore.
- AAUM up 11 percent at Rs 2.71 lakh crore.
- Lending Book up 30 percent at Rs 57,945 crore.
Manappuram Finance (Q2, YoY)
- Net Interest Income up 19 percent at Rs 697.1 crore.
- Net profit up 39 percent at Rs 222.2 crore.
- Gold Loan segment revenue up 18.9 percent at Rs 868.9 crore.
- Microfinance segment revenue up 45 percent at Rs 158.6 crore.
Camlin Fine Sciences (Q2, YoY)
- Revenue up 37.8 percent at Rs 201.3 crore.
- Net profit at Rs 1.3 crore versus Net loss of Rs 4.1 crore.
- Ebitda up 4.3 times at Rs 17.2 crore.
- Margin at 8.5 percent versus 2.7 percent.
MRF (Q2, YoY)
- Revenue up 9.4 percent at Rs 3,928.2 crore.
- Net profit down 12.3 percent at Rs 263 crore.
- Ebitda down 4.1 times at Rs 581.1 crore.
- Margin at 14.8 percent versus 16.9 percent.
- Other expenses at Rs 691.1 crore versus Rs 561.7 crore.
Aban Offshore (Q2, YoY)
- Revenue down 33.2 percent at Rs 219.8 crore.
- Net loss at Rs 38.1 crore versus net loss of Rs 27.8 crore.
- Ebitda loss at Rs 388.3 crore versus Ebitda loss of Rs 234.3 crore.
- Other Income at Rs 63.8 crore versus Rs 17.6 crore.
Pricol (Q2, YoY)
- Revenue up 16.1 percent at Rs 369.4 crore.
- Net profit down 59.1 percent at Rs 2.9 crore.
- Ebitda down 7.8 percent at Rs 28.5 crore.
- Margin at 7.7 percent versus 9.7 percent.
- Other operating income includes income from sale of land at Rs 11.8 crore.
Earnings To Watch
Nifty Earnings To Watch
- Titan
Other Earnings To Watch
- Amara Raja Batteries
- Eid Parry
- Fortis Malar Hospitals
- Goodricke Group
- Healthcare Global Enterprises
- Hindustan Aeronautics
- Igarashi Motors
- India Cements
- Indian Bank
- India Energy Exchange
- Kennametal India
- Mold-Tek Packaging
- Shankara Building Products
- Sobha
- V.S.T Tillers Tractors
- Fertilizers And Chemicals Travancore
- Vimta Labs
Stocks To Watch: Bharti Airtel, Fortis Healthcare, Dredging Corp And More!
- Bharti Airtel: Moody’s placed the telecom operator’s current rating of Baa3 on review for downgrade, primarily driven by its expectation that the company’s cash generation will remain weak and leverage at an elevated level. The review will focus on plans to substantially reduce debt levels significantly over a short period of time, and on turnaround of Indian mobile operations. The company refuted news reports of a delay in listings its Tanzanian subsidiary.
- Fortis Healthcare’s CEO Bhavdeep Singh resigned from his post. Singh will remain in the company till a successor has been found.
- Mphasis to acquire U.S.-based Stelligent Systems for $25 million. Stelligent is a technology services company that provides DevOps Automation in Amazon Web Services (AWS).
- Dredging Corp: Cabinet approved divestment of entire government stake of 73.47 percent. A consortium of 4 ports will buy out the government’s stake.
- NMDC lease deed for Donimalai Mine renewed for 20 years by Karnataka State Government for 20 years with effect from Nov. 04.
- Power Grid’s board approved three investment projects for system strengthening and communications scheme for Rs 911.43 crore.
- Hero MotoCorp released new premium motorcycle ‘Xpulse 200T’.
- Eris Lifesciences increased stake by 6.71 percent stake in Kinedex , post the acquisition the holding of the company has increased to 82.19 percent. The total consideration for this transaction was Rs 10.7 crore.
- Manappuram Finance’s board approved equity infusion of Rs 100 crore in Home Finance arm and Rs 150 crore in micro finance arm.
- GAIL awarded contracts worth Rs 1,100 crore for feeder gas pipeline project in Assam. This move will fast-track the implementation of the Barauni-Guwahati pipeline which will connect the north-east with the national gas grid.
- JSW Steel’s crude steel production in October was up 8 percent at 14.47 lakh tonne versus 13.43 lakh tonne on year-on-year basis.
- Glenmark Pharma launched Phase 1 trial for its Bispecific Antibody, aimed to cure solid tumors.
- Majesco entered into an agreement with Indonesia-based PT PFI Mega Life Insurance to develop management solutions.
- Government of India increased stake in Punjab National Bank by 5.83 percent to take its shareholding to 71.92 percent.
- Goa Carbon October sales at 11,730.6 metric tonne and production at 10,987.6 metric tonne. The production was worth Rs 31.3 crore.
- MRF reappointed KM Mammen as the managing director of the company till February 2019.
Talking Points: Fed Holds Rates, Bharti Airtel May Be Downgraded And More!
- Fed holds rates unchanged ahead of expected December hike
- Government approves mechanism for sale of enemy shares
- Blankfein was the unidentified Goldman executive present at 2009 1MDB meeting
- Amazon, Flipkart not violating competition norms, says CCI
- Government to exit Dredging Corporation of India
- RBI relaxes ECB norms for infrastructure companies
- Netflix announces nine new Indian shows as part of its Asia blitz
- Bharti Airtel’s ratings may be downgraded to junk by Moody’s
- Modi is still fighting the damage of India’s cash ban two years later
- Killer Delhi air is a water crisis in disguise
- Pests and drought seen cutting India’s sugar output from record
- Four ways India can aim for universal primary healthcare
- Key FII voice calls for peace between RBI and government
SGX Nifty Indicates Weak Opening For Indian Markets
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.31 percent or 32 points to 10,584 as of 7:03 a.m.
Stocks in Asia were little changed Friday after three days of gains and an overnight decline in their U.S. counterparts. The dollar strengthened after the Federal Reserve stayed on course to hike interest rates again in December and maintained its gradual tightening path.
Benchmarks in Japan, Australia and South Korea treaded water, and moves in U.S. futures were muted. Energy shares underperformed after oil entered a bear market, though crude prices inched higher after nine days of declines. Treasury yields ticked lower. The offshore yuan held this week’s drop ahead of Friday’s inflation data.
Currencies
- The Japanese yen climbed 0.1 percent to 113.99 per dollar.
- The offshore yuan rose 0.1 percent to 6.9376 per dollar.
- The euro rose less than 0.05 percent to $1.1367.
- The Bloomberg Dollar Spot Index held overnight gains of 0.6 percent.
Commodities
- West Texas Intermediate crude rose 0.1 percent to $60.74 a barrel.
- Gold fell 0.1 percent to $1,222.85 an ounce.
- LME copper rose less than 0.05 percent to $6,155 per metric ton.
Here are some key events coming up this week:
- Chinese factory-gate price gains may have dropped for a fourth straight month in October on U.S. tariffs and a slowing economy, according to forecasts ahead of Friday’s release. PPI is predicted to rise 3.3 percent year-on-year, compared with September’s 3.6 percent. CPI is expected to hold at 2.5 percent on a smaller advance in food prices.
- The U.K. economy probably picked up in the third quarter, economists forecast. GDP is seen rising 0.6 percent from the prior period and 1.5 percent on the year.
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