KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Halt Six-Day Gaining Streak
Indian equity benchmarks halted their six-day gaining streak, their longest stretch of gains in seven months.
The S&P BSE Sensex fell 0.85 percent to close at 38,963.84 and the NSE Nifty 50 fell 0.63 percent to end at 11,588.35. The broader markets represented by the NSE Nifty 500 Index fell 0.33 percent.
The benchmark indices were dragged by Infosys Ltd.’s 16 percent fall after an anonymous whistleblower letter has alleged that the company’s Chief Executive Officer Salil Parekh dressed up the company’s books—accusations that could plunge the software services provider into its second leadership-related crisis in a little over two years.
An Infosys spokesperson confirmed having received the letter and its contents to BloombergQuint. In a separate response to emailed queries, the company said “whistleblower complaint has been placed before the audit committee as per the company’s practice and will be dealt with in accordance with the company’s whistleblowers policy”.
The market breadth was tilted in favour of buyers. About 921 stocks advanced and 889 shares declined on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Pharma Index’s 1.9 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 4.8 percent.
Grasim Industries Gains After Signing Pact
Shares of Grasim Industries rose 1.4 percent to Rs 756.
The company signed a joint venture pact with Maschinenfabrik Reinhausen to make composite hollow core insulators.
Of the shares traded, 43 percent were at the ask price and 43 percent were at the bid, Bloomberg data showed.
Large Trade Alert: ITC
About 13 lakh shares of ITC changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Fab Four Stocks Of The Day
Granules India
- Stock rose as much as 18.1 percent to Rs 119.85.
- Revenue up 20.4 percent to Rs 699.5 crore.
- Net profit up 58.9 percent to Rs 95.8 crore.
- Ebitda up 42.9 percent to Rs 143.6 crore.
- Margin at 20.5 percent versus 17.3 percent.
- U.S. FDA approved the Abbreviated New Drug Application (ANDA) for Fexofenadine Hydrochloride tablets. It is bioequivalent to Allegra allergy tablets of Sanofi-Aventis U.S. LLC.
Avanti Feeds
- Stock rose as much as 15.6 percent to Rs 471 after Q2 results announcement.
- Revenue rose 41 percent to Rs 1,064 crore.
- Net profit rose 156 percent to Rs 119 crore.
- Ebitda rose 79 percent to Rs 129 crore.
- Ebitda margin stood at 12.1 percent versus 9.6 percent.
HEG
- Shares of the graphite electrode makers extended gains for the fourth consecutive trading session.
- HEG rose as much as 15 percent to Rs 1,114.50 while Graphite India rose as much as 12.1 percent to Rs 327.40. Both the stocks rose the most in over a month.
M&M Financial Services
- Stock rose as much as 8.98 percent to Rs 347.55.
- The scrip rallies ahead of results announcement.
Market Check: Sensex, Nifty Set To Halt Six-Day Gaining Streak
Indian equity benchmarks are set to halt their six-day gaining streak, their longest stretch of gains in seven months.
The S&P BSE Sensex fell 0.76 percent to 38,999 as of 3 p.m. and the NSE Nifty 50 fell 0.57 percent to 11,596. The broader markets represented by the NSE Nifty 500 Index fell 0.24 percent.
Stocks Moving On Heavy Volumes
Suprajit Engineering
- Stock rose as much as 1.8 percent to Rs 184.05.
- Trading volume was more than 20 times its 20-day average.
Grandeur Products
- Stock rose as much as 3.3 percent to Rs 298.
- Trading volume was more than 16 times its 20-day average.
Man Infraconstruction
- Stock rose as much as 19.9 percent to Rs 25.85.
- Trading volume was more than 12 times its 20-day average.
Bank Of Maharashtra
- Stock rose as much as 18.5 percent to Rs 11.55.
- Trading volume was more than 14 times its 20-day average.
Stocks Reacting To Results Announcement
Jubilant FoodWorks (Q2, YoY)
- Stock rose as much as 4.7 percent to Rs 1,424.
- Revenue up 12 percent to Rs 988 crore.
- Net profit down 2 percent to Rs 76 crore.
- Ebitda up 60 percent to Rs 236 crore.
- Margin at 23.9 percent versus 16.7 percent.
- Exceptional loss of Rs 12.5 crore.
Granules India (Q2, YoY)
- Stock rose as much as 18.1 percent to Rs 119.85.
- Revenue up 20.4 percent to Rs 699.5 crore.
- Net profit up 58.9 percent to Rs 95.8 crore.
- Ebitda up 42.9 percent to Rs 143.6 crore.
- Margin at 20.5 percent versus 17.3 percent.
GSK Pharma (Q2, YoY)
- Stock rose as much as 2.2 percent to Rs 1,470.
- Revenues up 8 percent to Rs 882 crore versus Rs 816 crore.
- Net profit up 403 percent to Rs 503 crore versus Rs 100 crore.
- Ebitda up 17 percent to Rs 193.6 crore versus Rs 164.7 crore.
- Margin at 21.9 percent versus 20.1 percent.
- Exceptional gain of Rs 401 crore.
Kotak Mahindra Bank Q2 Profit Meets Estimates; Asset Quality Weakens
Shares of Kotak Mahindra Bank fell as much as 1.3 percent to Rs 1,594.50 after the company’s September quarter profit meets estimates.
Key earnings highlights (Q2, YoY)
- Net interest income up 25 percent to Rs 3,350 crore.
- Net profit up 51 percent to Rs 1,724 crore (Estimate: Rs 1,709 crore).
- GNPA at 2.32 percent versus 2.19 percent (QoQ).
- NNPA at 0.85 percent versus 0.73 percent (QoQ).
- Provision at Rs 408 crore versus Rs 317 crore (QoQ).
ICICI Bank Jumps As MSCI Rejig Seen Triggering $1-Billion Inflow
Shares of ICICI Bank Ltd. are set to touch their all-time high as analysts expect nearly $1-billion inflow into the private lender on account of a likely increase in its weight on the MSCI India Index.
Motilal Oswal expects ICICI Bank’s weight in key MSCI Indices to increase to 6 percent from 3 percent, attracting an overseas inflow of $1.2 billion.
Morgan Stanley, too, expects ICICI Bank’s weight to increase to 5.7 percent because of an upward movement of the adjustment factor as foreign room on the stock goes above 25 percent. That, according to the research firm, may translate into foreign inflows worth $907 million into the private lender.
Read the full story here
Market Check: Sensex, Nifty At Day’s Low
Indian equity benchmarks were trading at day’s low after a topsy-turvy morning session.
The S&P BSE Sensex fell 0.6 percent to 39,048 as of 1:50 p.m. and the NSE Nifty 50 fell 0.46 percent to 11,607.45. The broader markets represented by the NSE Nifty 500 Index fell 0.2 percent.
The market breadth, however, was tilted in favour of buyers. About 942 stocks advanced and 841 shares declined on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by National Stock Exchange traded higher, led by the NSE Nifty Pharma Index’s 1.93 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 4.4 percent.
Yes Bank Off Day's High After Large Trade
Shares of Yes Bank were off day’s high after a large trade. The stock rose 4.8 percent to Rs 53.85. The scrip had advanced 10.1 percent intraday.
About 58 lakh shares of the Mumbai-based lender changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Bajaj Finance Gains After Q2 Results
Shares of Bajaj Finance pared losses and rose as much as 2 percent to Rs 4,219 after the company announced its September quarter results.
Key Earnings Highlights (Q2, YoY)
- Calculated net interest income up 41 percent to Rs 3,139 crore.
- Net profit up 63 percent to Rs 1,506 crore.
- Provisions up 7.8 percent to Rs 594 crore (QoQ).
- Gross NPA at 1.61 percent versus 1.60 percent (QoQ).
- Net NPA at 0.65 percent versus 0.64 percent (QoQ).
Large Trade Alert: Indiabulls Housing Finance
About 10.8 lakh shares of Indiabulls Housing Finance changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Bloomberg Exclusive: Government Said To Weigh Trade Curbs On Turkey, Malaysia
The government is India is considering placing curbs on some imports from Turkey and Malaysia, in response to their leaders’ comments on the autonomy of Kashmir, Bloomberg reported quoting people familiar with the matter.
“Prime Minister Narendra Modi’s government is exploring the possibility of both tariff and non-tariff measures to limit import of goods from the two countries. The options include stringent quality tests and a safeguard tax in addition to existing levies,” the report added.
Market Check: Sensex, Nifty Subdued
Indian equity benchmarks continued to fluctuated between gains and losses.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed 39,311 and 11,681 respectively. The broader markets represented by the NSE Nifty 500 Index rose 0.4 percent.
Global Markets Update: U.S. Futures, Stocks Advance On Trade Optimism
U.S. futures and most stocks in Asia climbed Tuesday as positive signs emerged on trade talks and ahead of earnings from some of the world’s biggest companies.
- Hong Kong’s Hang Seng Index rose 0.2 percent.
- Australia’s S&P/ASX 200 Index rose 0.3 percent.
- South Korea’s Kospi index gained 1.1 percent.
- Shanghai Composite Index was little changed.
- S&P 500 futures rose 0.2 percent.
- The S&P 500 climbed 0.7 percent.
- Euro Stoxx 50 futures added 0.1 percent.
- The MSCI Asia Pacific ex-Japan Index climbed 0.4 percent.
Get your daily fix of global markets here.
Source: Bloomberg
Reliance Power Extends Rally, Shares Surge 20%
Shares of Reliance Power extended gains for the third consecutive trading session. The stock rose as much as 19.6 percent to Rs 2.75. it had ended 17.9 percent higher on Friday.
Trading volume was three times its 20-day average, according to Bloomberg data. Of the shares traded, 58 percent were at the ask price and 26 percent were at the bid. The scrip advanced 41 percent in two trading sessions.
Graphite Electrode Makers Extends Gain; HEG Jumps 15%
Shares of the graphite electrode makers extended gains for the fourth consecutive trading session.
HEG rose as much as 15 percent to Rs 1,114.50 while Graphite India rose as much as 12.1 percent to Rs 327.40. Both the stocks rose the most in over a month.
Large Trade Alert: Vakrangee
About 12.1 lakh shares of Vakrangee changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Stocks Reacting To Results Announcement
Bharti Infratel (Q2, QoQ)
- Stock fell as much as 1.7 percent to Rs 257.10.
- Revenue down 2 percent to Rs 3637.6 crore (estimate Rs 3680 crore)
- Net profit up 8.6 percent to Rs 963.5 crore (estimate Rs 753 crore)
- Ebitda down 0.9 percent to Rs 1878.3 crore (estimate Rs 1761 crore)
- Margin at 51.6 percent versus 51 percent (estimate 48 percent)
AU Small Finance Bank (Q2, YoY)
- Stock rose as much as 3.9 percent to Rs 680.
- Net interest income up 40.6 percent to Rs 451.6 crore.
- Net profit up 88.1 percent to Rs 171.9 crore
- Provisions to Rs 61 crore versus Rs 35 crore (Rs 31.5 crore QoQ)
- GNPA to 2.01 percent versus 2.08 percent QoQ
- NNPA to 1.14 percent versus 1.25 percent QoQ
UltraTech Cement (Q2, YoY)
- Stock rose as much as 2.7 percent to Rs 4,409.
- Revenue up 4.3 percent to Rs 9,253.8 crore (estimate Rs 8750.5 crore)
- Net profit up 72.3 percent to Rs 639.2 crore (estimate Rs 805.1 crore)
- Ebitda up 29.2 percent to Rs 1,812.6 crore (estimate Rs 1887 crore)
- Margin at 19.6 percent versus 15.8 percent (estimate 21.6 percent)
- Domestic volumes down 1 percent to 17.2 million tonne (BQ Estimates of 16.6 million tonne)
Piramal Enterprises (Q2, YoY)
- Stock rose as much as 7.9 percent to Rs 1,680.
- Revenue up 14.6 percent to Rs 3,603.6 crore.
- Net profit up 15.3 percent to Rs 554.7 crore.
- Ebitda up 36.3 percent to Rs 2,253.9 crore.
- Margin at 62.5 percent versus 52.6 percent.
- Pharma segment revenue up 17 percent to Rs 1,316.4 crore.
- Financial services revenue up 13 percent to Rs 1,954 crore.
- Healthcare insights & analytics revenue up 14 percent to Rs 333.2 crore.
- Other expenses down 46 percent to Rs 325.5 crore.
Ujjivan Financial Services (Q2, YoY)
- Stock rose as much as 1.9 percent to Rs 312.75.
- Net interest income up 44.7 percent to Rs 407 crore.
- Net profit up 2.2 times to Rs 63.2 crore.
- Numbers not comparable, as details of Ujjivan Small Finance Bank also included in the current quarter.
Tata Elxsi (Q2, QoQ)
- Stock fell as much as 4.7 percent to Rs 675.20.
- Revenue up 6.7 percent to Rs 385.8 crore.
- Net profit up 2 percent to Rs 49.8 crore.
- EBIT flat to Rs 58 crore versus Rs 58.1 crore.
- Margin at 15 percent versus 16.1 percent.
Avanti Feeds (Q2, YoY)
- Stock rose as much as 15.6 percent to Rs 471.
- Revenue rose 41 percent to Rs 1,064 crore.
- Net profit rose 156 percent to Rs 119 crore.
- Ebitda rose 79 percent to Rs 129 crore.
- Ebitda margin stood at 12.1 percent versus 9.6 percent.
Dalmia Bharat (Q2, YoY)
- Stock rose as much as 2.6 percent to Rs 838.05.
- Revenue rose 6.5 percent to Rs 2236 crore.
- Net profit Rs 27 crore versus net loss of Rs 1 crore.
- Ebitda rose 35 percent to Rs 471 crore.
- Ebitda margin stood at 21 percent versus 16.6 percent.
BEPL (Q2, YoY)
- Stock rose as much as 5.6 percent to Rs 53.05.
- Revenue fell 20 percent to Rs 280 crore.
- Net profit rose by 18 percent.
- Ebitda fell 28 percent to Rs 20 crore.
- Ebitda margin stood at 7.1 percent versus 7.9 percent.
Oberoi Realty (Q2, YoY)
- Stock fell as much as 7 percent to Rs 502.25.
- Revenue dropped 17 percent to Rs 491 crore
- Net profit down 35 percent to Rs 138 crore.
- Ebitda fell 28 percent to Rs 213 crore.
- Ebitda margin stood at 43 percent versus 50 percent.
- Finance cost rose 4.2 times to Rs 25 crore.
Ambuja Cements (Q3. YoY)
- Stock fell as much as 7.3 percent to Rs 192.50.
- Revenue up 0.5 percent to Rs 2,626.1 crore.
- Net profit up 31.4 percent to Rs 234.6 crore.
- Ebitda up 22.8 percent to Rs 439.9 crore.
- Margin at 16.8 percent versus 13.7 percent.
- Volume at 5.23 MT vs 5.46 MT
L&T Technology Services (Q2, YoY)
- Stock fell as much as 19.4 percent to Rs 1,321.
- Dollar revenue up 12 percent to $198 million.
- Revenue up 10.7 percent to Rs 1402.1 crore.
- Net profit up 7.7 percent to Rs 205.8 crore.
- Ebitda up 23.8 percent to Rs 283.2 crore.
- Margins at 20.2 percent versus 18.1 percent.
- Declared dividend of Rs 7.5 per share
L&T Finance Holdings (Q2, YoY)
- Stock fell as much as 2.1 percent to Rs 83.60.
- Net interest income up 19.1 percent to Rs 1,396.4 crore.
- Net profit down 68.9 percent to Rs 174.2 crore.
- One-time charge of Rs 473.4 crore in current quarter as impact of change in the rate on opening of deferred tax.
- Company will use the option to pay tax of 22 percent, as per the recent changes.
ICICI Lombard General Insurance (Q2 ,YoY)
- Stock rose as much as 2.9 percent to Rs 1,281.
- Gross direct premium down 16.4 percent to Rs 2,953 crore.
- Net Profit up 5 percent to Rs 308 crore.
- Combined ratio at 102.6 percent versus 101.1 percent.
- Solvency ratio at 2.26 times versus 2.2 times.
- Net premium from motor segment increased by 25 percent to Rs 1520 crore.
Kirloskar Ferrous Industries (Q2, YoY)
- Stock fell as much as 1.2 percent to Rs 60.
- Revenue down 14.1 percent to Rs 464.2 crore.
- Net profit down 51.3 percent to Rs 13.2 crore.
- Ebitda down 28.5 percent to Rs 41.8 crore.
- Margin at 9 percent versus 10.8 percent.
Sasken Technologies (Q2, QoQ)
- Stock fell as much as 10.9 percent to Rs 536.95.
- Revenue down 6.7 percent to Rs 125.7 crore.
- Net profit down 2.2 percent to Rs 22.7 crore.
- Ebitda down 35 percent to Rs 14.3 crore.
- Margin at 11.4 percent versus 16.3 percent.
- Other Income up 25 percent to Rs 14.4 crore.
Mahindra Lifespace (Q2, YoY)
- Stock fell as much as 2.5 percent to Rs 417.20.
- Revenue up four times to Rs 324.5 crore.
- Ebitda profit of Rs 14 crore vs Ebitda loss of Rs 2 crore
- Margin at 4.4 percent
- Net profit down 63 percent to Rs 15 crore.
- Base quarter had higher share of profits from JV and associates and higher other income.
- Other income down 61 percent to Rs 5.4 crore vs Rs 13.7 crore.
- Profit from JV and associates down 99 percent to Rs 0.4 crore.
IIFL Wealth Management (Q2, YoY)
- Stock fell as much as 6 percent to Rs 1,130.
- Revenue down 13 percent to Rs 369 crore.
- Net profit down 32 percent to Rs 68.4 crore.
- Calculated NII down 17 percent to Rs 50 crore.
- Net fees and commission down 28 percent to Rs 157 crore.
HFCL (Q2, YoY)
- Stock fell as much as 2.1 percent to Rs 18.35.
- Revenue down 19 percent to Rs 980 crore.
- Ebtida up 47.5 percent to Rs 138 crore.
- Margin at 14.1 percent versus 7.7 percent.
- Net profit up 49 percent to Rs 65 crore.
- Lower cost of material aided numbers.
Just Dial (Q2 YoY)
- Stock fell as much as 2.1 percent to Rs 621.05.
- Revenue up 10 percent to Rs 242.6 crore.
- Ebtida up 17 percent to Rs 67.3 crore.
- Margin at 27.7 percent versus 26 percent.
- Net profit up 59 percent to Rs 77 crore.
- Higher other income and lower costs aided financials.
- Other income up 2.4 times to Rs 44 crore.
Market Check: Sensex, Nifty Volatile
Indian equity benchmarks continued to fluctuate between gains and losses.
The S&P BSE Sensex fell 0.2 percent to 39,214.28 as of 10 a.m. and the NSE Nifty 50 traded little changed at 11,658. The broader markets represented by the NSE Nifty 500 rose 0.17 percent.
Adani Green Energy Halts 11-Day Rally, Shares Fall 5%
Shares of Adani Green Energy halted their 11-day gaining streak, their record gaining streak. The stock fell as much as 5.1 percent to Rs 85.
The has commissioned 50MW wind generation capacity in Gujarat having PPA with SECI for 25 years. Besides, the company has planned further 225MW wind capacity in the Bhuj Area by the second half of 2020.
The Relative Strength Index was at 78, indicating that the stock may be overbought, according to Bloomberg data. The stock advanced 104 percent so far this year and rallied 139 percent in the past 12 months.
HDFC Bank Gains After Q2 Profit Meets Estimates
Shares of HDFC Bank extended gains for the second consecutive trading session. The stock rose as much as 2.3 percent to Rs 1,257 after its quarterly profit during July-September period met estimates.
Net profit of India’s most valuable bank rose 26.8 percent year-on-year to Rs 6,345 crore in the quarter ended September, it said in an exchange filing. That compares with the Rs 6,198-crore consensus estimate of analyst tracked by Bloomberg.
Asset quality remained stable even as the absolute of bad loans rose 6 percent to Rs 12,508 crore. Gross non-performing assets ratio stood at 1.38 percent compared to 1.4 percent in the previous quarter. Net NPA stood at 0.42 percent compared to 0.43 percent earlier.
Reliance Industries Extends Record Run After Q2 Results
Shares of Reliance Industries extended gains for the sixth consecutive trading session. The stock rose as much as 1.5 percent to Rs 1,436 after the company announced its September quarter results.
Key Earnings Highlights
Reliance Industries (Q2, QoQ)
- Revenue down 1.3 percent to Rs 87,137 crore.
- Net profit up 7.4 percent to Rs 9,702 crore.
- Ebitda up 0.2 percent to Rs 13,666 crore.
- Margins at 15.7 percent versus 15.5 percent.
- GRM up 16 percent to $9.4/bbl versus $8.1/bbl.
Reliance Jio (Q2, QoQ)
- Revenue up 5.8 percent to Rs 12,354 crore.
- Net profit up 11.1 percent to Rs 990 crore.
- Ebitda rose 10 percent to Rs 5,139 crore.
- Margin at 41.6 percent versus 40 percent.
- ARPU down 2 percent to Rs 120 versus Rs 122.
Read these to get up to speed:
- Reliance Industries’ profit rises most in 15 quarters as refining margin rebound
- Reliance Industries says on track to produce gas from newer fields by mid-2020
- Consumer units replace refining as RIL’s second-biggest business
- Reliance Jio’s operating profit meets estimates even as ARPU falls.
- Reliance Jio slams TRAI’s review of call connect charges, calls it anti-poor.
- Reliance Jio unveils new plans with bundled in IUC
Infosys Drops 16% After Whistleblower Complaints
Shares of Infosys fell as much as 16 percent the most since April 2013, to Rs 645.
An anonymous whistleblower letter has alleged that the company’s Chief Executive Officer Salil Parekh dressed up the company’s books—accusations that could plunge the software services provider into its second leadership-related crisis in a little over two years.
An Infosys spokesperson confirmed having received the letter and its contents to BloombergQuint. In a separate response to emailed queries, the company said “whistleblower complaint has been placed before the audit committee as per the company’s practice and will be dealt with in accordance with the company’s whistleblowers policy”.
Addressing the complaint, Nandan Nilekani, chairman of Infosys says:
- The whistleblower complaints are being dealt with in an objective manner.
- The undated complaint largely deals with allegations relating to the CEO’s international travel to the U.S. and Mumbai.
- Will ensure that the generalised allegations are investigated to the fullest extent.
- To ensure independence in these investigations the CEO and CFO have been recused from this matter.
Opening Bell: Sensex, Nifty Open Lower
Indian equity indices fluctuated between gains and losses in the opening trade.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,317 and 11,683 respectively. The broader markets represented by the NSE Nifty 500 Index rose 0.27 percent.
The market breadth was tilted in favour of buyers. About 899 stocks advanced and 586 shares declined on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Financial Services Index’s 0.86 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 2.3 percent.
Your Complete F&O Trade Setup
Futures
- Nifty October futures closed at 11,670, premium of 8.2 points versus 14.3 points.
- Nifty October futures down 3 percent, sheds 4 lakh shares in open interest.
- Nifty Bank October futures closed at 29,152.3, the premium of 32 points versus 90.2pts
- Nifty Bank October futures open interest down 9 percent, sheds 1.2lakh shares in open interest.
Options
- Nifty put-call ratio at 1.43 versus 1.40 (across all series)
Nifty Weekly Expiry: Oct 24
- Max open interest on call side at 11,700 (10.8 lakh shares)
- Max open interest on put side at 11,500 (15.9 lakh shares)
- Open interest addition seen at 11600P (+10 lakh shares), 12,000C (6.5 lakh shares)
Nifty Monthly Expiry: Oct 31
- Max open interest on call side at 11,700 (19.2 lakh shares)
- Max open interest on put side at 11,000 (29 lakh shares)
BQ Heads-Up: Who’s Meeting Whom
- Affle to meet Aberdeen Standard Investments on Oct. 23
BQ Heads-Up: Trading Tweaks
- Sintex Industries to move into ASM Framework
- NRB Industrial Bearings, Simplex Infrastructures to move out of ASM Framework
- Ind-Swift, Taj GVK Hotels & Resorts, Hindusthan National Glass & Industries,
- Religare Enterprises, Shriram EPC to move out of short term ASM Framework
- New India Assurance, Venus Remedies price band revised to 10 percent.
- Shriram EPC, Aurionpro Solutions price band revised to 5 percent.
BQ Heads-Up: Bulk Deals
Eveready Industries
- Goldman Sachs India sold 18.75 lakh shares or 2.58 percent equity to Rs 38.8 each.
- Monet Securities acquired 7 lakh shares or 0.96 percent equity at Rs 38.8 each
Indiabulls Housing Finance:
- Wisdomtree Emerging Markets Smallcap Dividend Fund acquired 25.89 lakh shares or 0.61 percent equity at Rs 225.19 each.
Money Market Update: Rupee Opens Higher
The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.35 percent to 70.90 against the greenback.
Pre-Market Check: Sensex, Nifty Set To Open Lower
Indian equity benchmarks are set to pen lower.
The S&P BSE Sensex fell 0.24 percent to 39,202 during the pre-market trade and the NSE Nifty 50 traded little changed at 11,666.
Infosys Whistleblower Case: Nandan Nilekani Comments In Statement
Nandan Nilekani, Chairman of Infosys says
- The whistleblower complaints are being dealt with in an objective manner.
- The undated complaint largely deals with allegations relating to the CEO’s international travel to the U.S. and Mumbai.
- Will ensure that the generalised allegations are investigated to the fullest extent.
- To ensure independence in these investigations the CEO and CFO have been recused from this matter.
BQ Heads-Up: How ADRs Fared Last Night
Stocks To Watch: Adani Green Energy, Infosys, UltraTech Cement
- Infosys: An anonymous whistleblower letter has alleged that the company’s Chief Executive Officer Salil Parekh dressed up the company’s books—accusations that could plunge the software services provider into its second leadership-related crisis in a little over two years.
- Adani Green Energy has commissioned 50MW wind generation capacity in Gujarat having PPA with SECI for 25 years. Company has planned further 225MW wind capacity in the Bhuj Area by the second half of 2020.
- UltraTech Cement: Board approved capex of Rs 940 crore for premium products with an increase in grinding capacities in Bihar and West Bengal by 0.6MTPA each and a grinding unit of 2.2 million tons in Odisha. All plants to be commissioned by Jan-March 2021.
- Chalet Hotels clarified that the news of the company in talks to buy Accor’s Novotel is speculative in nature.
- REC: Board approved sale of two SPVs to bidders.
- MSTC: HPCL and Mittal Group JVs appointed company as the selling agent. MSTC will levy a service charge of 2.7 percent and incase of pre-bid forfeiture MSTC will get 50 percent of the amount.
- ITI: To meet investors from October 22 to October 25 in Mumbai, Pune and Chennai.
- DHFL: Company clarified that the enforcement directorate visited one of the offices and had raised certain queries to the senior officials. The company has provided the necessary documents and clarifications as required by the department.
- Granules India: U.S. FDA approved the Abbreviated New Drug Application (ANDA) for Fexofenadine Hydrochloride tablets. It is bioequivalent to Allegra allergy tablets of Sanofi-Aventis U.S. LLC.
- Tata Steel clarified that news concerning security threats to its Jamshedpur steel plant is incorrect and there is no information of any specific threat to the plant’s security.
- Vinati Organics to consider share split from one equity share into two equity shares on Nov. 12.
- Berger Paints to acquire 95.53 percent stake in STP Limited at Rs 167.5 crore. The target company manufactures and supplies construction chemicals and building materials.
- Somany Ceramics: NCLT Kolkata gave approval for the amalgamation of company’s three arms with self.
- NBCC said that revised Resolution Plan given by the Supreme Court to complete stalled Jaypee projects has been given in a sealed cover to the company,and the daily order is still awaited from the Supreme Court.
- DHFL clarified that the amount of Rs 2,186 crore were never lent to Sunblink, as alleged in the media. The corporate actions have been only done to enhance the company’s security cover and cash flow receivables on the lending. Catalyst Trusteeship said in its press release that DHFL has defaulted in payment of interest for NCDs which were due on Oct. 16.
- Jet Airways: Resolution Professional has extended the last date for submission of Resolution Plan to Nov. 15.
- Indiabulls Housing Finance: Brickwork Ratings revised company’s long-term rating to BWR AA+ from BWR AAA.
- Ambuja Cements: Board approved merger of wholly-owned arm Dirk India with self. The target company is in the business of processing of Fly ash into "Pozzocrete" and is also engaged in a job work for Ambuja Cements by manufacturing cement at its Nasik facility.
- Inox Wind clarified that its three manufacturing plants located in Gujarat, Madhya Pradesh and Himachal Pradesh are fully operational and there is no lock out.
- South Indian Bank revised MCLR across various tenors with effect from Oct. 20. One-Month MCLR stands at 8.55 percent and one-year MCLR stands at 9.2 percent.
- Future Lifestyle Fashions: Debenture Trustee Vistra ITCL increased its stake via encumbrance to 45.77 percent from 38.55 percent on Oct. 17.
- Cian Healthcare: Brickwork Ratings has downgraded the credit rating for loan facilities to “BWR D” (default).
- Balmer Lawrie to consider bonus issue of shares on Nov. 11.
- Tata Motors to consider raising funds on Oct. 25
- Reliance Communications: Creditors Panel to meet on Oct. 22.
Q2 Earnings Corner: Axis Bank, Asian Paints, Bajaj Finance, Kotak Mahindra Bank
Nifty Earnings To Watch
- Asian Paints
- Axis Bank
- Bajaj Finance
- Bajaj Finserv
- Kotak Mahindra Bank
Other Earnings To Watch
- RBL Bank
- GlaxoSmithKline Pharmaceuticals
- Granules India
- Oriental Bank of Commerce
- Jubilant FoodWorks
- Jyothy Labs
- Reliance Home Finance
- Solara Active Pharma Sciences
- Subros
- Hatsun Agro Product
- Rallis India
- ICICI Prudential Life Insurance
- Mahindra & Mahindra Financial Services
- ICICI Securities
- IIFL Securities
- Indiabulls Ventures
- Welspun Corp
- Welspun India
- Indiamart Intermesh
- Mangalore Chemicals & Fertilizers
- Muthoot Capital Services
- JK Agri Genetics
- Bank of Maharashtra
- CCL Products
- CEAT
- Coromandel International
- Elecon Engineering
- DIC India
- Kewal Kiran Clothing
- NR Agarwal Industries
- Newgen Software Technologies
- Wendt
- Orient Electric
- PPAP Automotive
- PSP Projects
- Rane Brake Lining
- Shanthi Gears
- Sharda Cropchem
- Simplex Projects
- Supreme Petrochem
- Swaraj Engines
- Syngene International
- TV Today Network
Earnings Reaction To Watch
Bharti Infratel (Q2, QoQ)
- Revenue down 2 percent to Rs 3637.6 crore (estimate Rs 3680 crore)
- Net profit up 8.6 percent to Rs 963.5 crore (estimate Rs 753 crore)
- Ebitda down 0.9 percent to Rs 1878.3 crore (estimate Rs 1761 crore)
- Margin at 51.6 percent versus 51 percent (estimate 48 percent)
AU Small Finance Bank (Q2, YoY)
- Net interest income up 40.6 percent to Rs 451.6 crore.
- Net profit up 88.1 percent to Rs 171.9 crore
- Provisions to Rs 61 crore versus Rs 35 crore (Rs 31.5 crore QoQ)
- GNPA to 2.01 percent versus 2.08 percent QoQ
- NNPA to 1.14 percent versus 1.25 percent QoQ
UltraTech Cement (Q2, YoY)
- Revenue up 4.3 percent to Rs 9,253.8 crore (estimate Rs 8750.5 crore)
- Net profit up 72.3 percent to Rs 639.2 crore (estimate Rs 805.1 crore)
- Ebitda up 29.2 percent to Rs 1,812.6 crore (estimate Rs 1887 crore)
- Margin at 19.6 percent versus 15.8 percent (estimate 21.6 percent)
- Domestic volumes down 1 percent to 17.2 million tonne (BQ Estimates of 16.6 million tonne)
Piramal Enterprises (Q2, YoY)
- Revenue up 14.6 percent to Rs 3,603.6 crore.
- Net profit up 15.3 percent to Rs 554.7 crore.
- Ebitda up 36.3 percent to Rs 2,253.9 crore.
- Margin at 62.5 percent versus 52.6 percent.
- Pharma segment revenue up 17 percent to Rs 1,316.4 crore.
- Financial services revenue up 13 percent to Rs 1,954 crore.
- Healthcare insights & analytics revenue up 14 percent to Rs 333.2 crore.
- Other expenses down 46 percent to Rs 325.5 crore.
Ujjivan Financial Services (Q2, YoY)
- Net interest income up 44.7 percent to Rs 407 crore.
- Net profit up 2.2 times to Rs 63.2 crore.
- Numbers not comparable, as details of Ujjivan Small Finance Bank also included in the current quarter.
Tata Elxsi (Q2, QoQ)
- Revenue up 6.7 percent to Rs 385.8 crore.
- Net profit up 2 percent to Rs 49.8 crore.
- EBIT flat to Rs 58 crore versus Rs 58.1 crore.
- Margin at 15 percent versus 16.1 percent.
Avanti Feeds (Q2, YoY)
- Revenue rose 41 percent to Rs 1,064 crore.
- Net profit rose 156 percent to Rs 119 crore.
- Ebitda rose 79 percent to Rs 129 crore.
- Ebitda margin stood at 12.1 percent versus 9.6 percent.
Dalmia Bharat (Q2, YoY)
- Revenue rose 6.5 percent to Rs 2236 crore.
- Net profit Rs 27 crore versus net loss of Rs 1 crore.
- Ebitda rose 35 percent to Rs 471 crore.
- Ebitda margin stood at 21 percent versus 16.6 percent.
BEPL (Q2, YoY)
- Revenue fell 20 percent to Rs 280 crore.
- Net profit rose by 18 percent.
- Ebitda fell 28 percent to Rs 20 crore.
- Ebitda margin stood at 7.1 percent versus 7.9 percent.
Oberoi Realty (Q2, YoY)
- Revenue dropped 17 percent to Rs 491 crore
- Net profit down 35 percent to Rs 138 crore.
- Ebitda fell 28 percent to Rs 213 crore.
- Ebitda margin stood at 43 percent versus 50 percent.
- Finance cost rose 4.2 times to Rs 25 crore.
Reliance Industries (Q2, QoQ)
- Revenue down 1.3 percent to Rs 87,137 crore.
- Net profit up 7.4 percent to Rs 9,702 crore.
- Ebitda up 0.2 percent to Rs 13,666 crore.
- Margins at 15.7 percent versus 15.5 percent.
- GRM up 16 percent to $9.4/bbl versus $8.1/bbl.
Also Read: Q2 Results: Reliance Industries’ Profit Rises Most In 15 Quarters As Refining Margin Rebound
Reliance Jio (Q2, QoQ)
- Revenue up 5.8 percent to Rs 12,354 crore.
- Net profit up 11.1 percent to Rs 990 crore.
- Ebitda rose 10 percent to Rs 5,139 crore.
- Margin at 41.6 percent versus 40 percent.
- ARPU down 2 percent to Rs 120 versus Rs 122.
Ambuja Cements (Q3. YoY)
- Revenue up 0.5 percent to Rs 2,626.1 crore.
- Net profit up 31.4 percent to Rs 234.6 crore.
- Ebitda up 22.8 percent to Rs 439.9 crore.
- Margin at 16.8 percent versus 13.7 percent.
- Volume at 5.23 MT vs 5.46 MT
L&T Technology Services (Q2, YoY)
- Dollar revenue up 12 percent to $198 million.
- Revenue up 10.7 percent to Rs 1402.1 crore.
- Net profit up 7.7 percent to Rs 205.8 crore.
- Ebitda up 23.8 percent to Rs 283.2 crore.
- Margins at 20.2 percent versus 18.1 percent.
- Declared dividend of Rs 7.5 per share
L&T Finance Holdings (Q2, YoY)
- Net Interest income up 19.1 percent to Rs 1,396.4 crore.
- Net profit down 68.9 percent to Rs 174.2 crore.
- One-time charge of Rs 473.4 crore in current quarter as impact of change in the rate on opening of deferred tax.
- Company will use the option to pay tax of 22 percent, as per the recent changes.
ICICI Lombard General Insurance (Q2 ,YoY)
- Gross direct premium down 16.4 percent to Rs 2,953 crore.
- Net Profit up 5 percent to Rs 308 crore.
- Combined ratio at 102.6 percent versus 101.1 percent.
- Solvency ratio at 2.26 times versus 2.2 times.
- Net premium from motor segment increased by 25 percent to Rs 1520 crore.
Kirloskar Ferrous Industries (Q2, YoY)
- Revenue down 14.1 percent to Rs 464.2 crore.
- Net profit down 51.3 percent to Rs 13.2 crore.
- Ebitda down 28.5 percent to Rs 41.8 crore.
- Margin at 9 percent versus 10.8 percent.
Sasken Technologies (Q2, QoQ)
- Revenue down 6.7 percent to Rs 125.7 crore.
- Net profit down 2.2 percent to Rs 22.7 crore.
- Ebitda down 35 percent to Rs 14.3 crore.
- Margin at 11.4 percent versus 16.3 percent.
- Other Income up 25 percent to Rs 14.4 crore.
Mahindra Lifespace (Q2, YoY)
- Revenue up four times to Rs 324.5 crore.
- Ebitda profit of Rs 14 crore vs Ebitda loss of Rs 2 crore
- Margin at 4.4 percent
- Net profit down 63 percent to Rs 15 crore.
- Base quarter had higher share of profits from JV and associates and higher other income.
- Other income down 61 percent to Rs 5.4 crore vs Rs 13.7 crore.
- Profit from JV and associates down 99 percent to Rs 0.4 crore.
IIFL Wealth Management (Q2, YoY)
- Revenue down 13 percent to Rs 369 crore.
- Net profit down 32 percent to Rs 68.4 crore.
- Calculated NII down 17 percent to Rs 50 crore.
- Net fees and commission down 28 percent to Rs 157 crore.
HFCL (Q2, YoY)
- Revenue down 19 percent to Rs 980 crore.
- Ebtida up 47.5 percent to Rs 138 crore.
- Margin at 14.1 percent versus 7.7 percent.
- Net profit up 49 percent to Rs 65 crore.
- Lower cost of material aided numbers.
Just Dial (Q2 YoY)
- Revenue up 10 percent to Rs 242.6 crore.
- Ebtida up 17 percent to Rs 67.3 crore.
- Margin at 27.7 percent versus 26 percent.
- Net profit up 59 percent to Rs 77 crore.
- Higher other income and lower costs aided financials.
- Other income up 2.4 times to Rs 44 crore.
Global Cues: U.S. Stocks End Higher
- U.S. stocks advanced amid positive signs on trade talks and as investors awaited earnings from some of the world’s biggest companies.
- Oil was little changed in Asian trading on Tuesday after falling for two days amid ongoing concern that a fragile economic outlook will weigh on fuel demand.
- Pound traded near a five-month high amid speculation Prime Minister Boris Johnson will eventually be able to win parliamentary backing for his Brexit deal.
Get your daily fix of global markets here.
SGX Nifty Suggests Stock Losses; Asian Equities Edge Higher
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.48 percent to 11,641 as of 8:20 a.m.
Stocks in Asia gained on Tuesday after U.S. equities advanced as positive signs emerged on trade talks and ahead of earnings from some of the world’s biggest companies.
South Korean and Australian shares were higher and futures pointed to gains in Hong Kong. Volumes were below their 30-day averages. Japan was closed for a holiday. S&P 500 Futures rose suggesting there is a scope for the underlying gauge to extend gains after it surpassed 3,000.
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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