KEY HIGHLIGHTS
Closing Bell: Selling Across The Board
Indian equity markets ended lower amid subdued global cues and an elusive stimulus deal in the U.S. Volatility remained high through the session.
The S&P BSE Sensex ended 1.33% lower at 40,145 while the NSE Nifty 50 index failed to hold the mark of 11,800, ending 1.36% lower at 11,767.
“It is predominantly global factors at play here with U.S. futures down and investors also want to avoid the U.S. election day uncertainty,” Kranthi Bathini, an equity strategist at WealthMills Securities Pvt. told Bloomberg/
Selling pressure was seen across the board as all sectoral indices ended with losses. The declines were lead mainly by the Nifty Metal (down 3.5%) and Nifty Auto (down 3.2%) index.
The top contributor to the downside today was Reliance Industries, which ended 3.7% lower, its biggest single-day drop in three months. The stock closed at its lowest level since early August while on the technical front, the charts have slipped into oversold territory, with Relative Strength Index (RSI) falling to 29.
The Nifty Bank and Nifty PSU Bank index fell over 1% each while the Nifty Pharma and Nifty Realty index declined 1.5% and 1.9% respectively.
Broader markets, especially the midcap index, underperformed the benchmarks in today's session. The Nifty Midcap index ended 1.7% lower while the Smallcap index declined 1%.
India Volatility Index ended 4.6% higher at 22.83.
1,219 stocks on the NSE ended with losses, while 645 stocks posted gains.
How Did The Sectoral Indices Fare?
All Stocks Of The Auto Index Decline
Buzzing Stock: KEI Industries
- Among top performing stocks on the Nifty Smallcap index
- Gains as much as 4.1% to Rs 349.1
- Biggest single-day gain in over a month
- Up for the fourth straight day
- Has gained 9% in the last four trading sessions
- Today's volumes are 49% higher than its 20-day average
- Heading towards its 100-Day Moving Average on the upside at 360.2
- Relative Strength Index (RSI) of the stock at 53
- Trading 43.2% below its 52-week high of Rs 614.6 on October 30, 2019
- All 12 analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 35.3%
India Mulls Easing Rules For Medical-Device Makers
The government is considering scrapping an investment rule to lure medical device manufacturers to set up factories in the country, people with knowledge of the matter told Bloomberg.
Current regulations require medical-device makers to invest $25 million in three years, to avail production-linked benefits, sources said.
The government plans to offer the incentives once the company's revenue cross Rs 60 crore from the current threshold of Rs 120 crore.
The incentives will be rolled out from FY23 for a period of five years. A Niti Aayog spokesperson did not answer Bloomberg's call seeking a comment.
Earnings Reaction: SBI Life Insurance Q2FY21
- Net Premium Income up 27% to Rs 12,858 crore
- Net profit more than doubles to Rs 299.7 crore
- Solvency Ratio at 2.45 times from 2.2 times
- 13th month persistency ratio at 85% from 83%
- 61th month persistency ratio at 60.3% from 59.5%
- Additional reserves worth Rs 64.76 crore resulting from the pandemic over and above policy level liabilities
- Decline in opex ratio contributes to net profit growth
- Opex ratio down to 5.4% from 6.4%
- VNB Margins for H1FY21 remains flat at 20.2%
- All numbers compared on a year-on-year basis
Shares ended 1.3% higher at Rs 781, snapping a three-day losing streak.
Active Stock Options
- Reliance Industries' 2,000 Put: Premium up 338.1% to Rs 13.8. The contract has added 68,175 shares in Open Interest.
- Kotak Mahindra Bank's 1,400 Call: Premium up 10% to Rs 22.4. The contract has added 2.6 lakh shares in Open Interest.
- IndusInd Bank's 640 Call: Premium up 19.6% to Rs 8.5. The contract has added 4,800 shares in Open Interest.
Stock Reaction: Cosmo Films
The company at its board meeting today has approved a buyback of equity shares of face of Rs 10 each, not exceeding 12.6 lakh shares or 6.5% of the total equity share capital of the company.
The buyback price is set at Rs 576 per share, the exchange filing. The buyback price is a 23% premium to Monday's closing price.
The total consideration for the share buyback is worth Rs 73 crore. The promoters of the company will be participating in the share buyback process.
Shares gained as much as 2.7% to Rs 479.5, post the announcement and is up for the third straight day.
The record date for the buyback has been set as November 9, 2020.
Earnings Reaction: GHCL Q2FY21
- Revenue down 6% to Rs 770 crore
- Net profit down 36% to Rs 78.2 crore
- Ebitda down 23% to Rs 152.8 crore
- Ebitda margin at 19.8% from 24.2%
- Deferred tax gain of Rs 22 crore in the base quarter
- Inorganic Chemicals revenue down 11% to Rs 480 crore
- Home Textiles segment revenue up 3% to Rs 290.1 crore
- Impact of Covid-19 remains uncertain
- All numbers are standalone and compared on a year-on-year basis
Shares gained as much as 6.5% to Rs 168.2, post the announcement. The stock trades at the highest level in over a month.
Markets At 2:10 P.M.
- Benchmark indices extend losses; trade at the day's low
- Nifty down 1.7% at 11,723
- Sensex down 1.7% at 39,980
- Nifty Bank down 2.5% at 23,884
- Nifty Midcap index down 2%
- Nifty Smallcap index down 1.1%
- India Volatility Index up 7% at 23.35
- Nifty Metal remains the top sectoral laggard; down 4.2%
- Nifty Auto is the other major sectoral laggard; down 3.3%
- Nifty Media and Nifty Realty fall over 2.5% each
- Nifty Pharma and Nifty PSU Bank fall 1.7% & 1.3% respectively
- Nestle India remains the top Nifty gainer; up 2.2%
- Hero MotoCorp is the top Nifty Laggard; down 7%
- 40 out of the 50 Nifty constituents trade with losses
- 1,279 stocks on the NSE are declining; 549 trade with gains
Money Market Update
The rupee has ended with losses in today's trading session, in-line with the sentiment in the equity markets.
The currency ended at 73.85 against the U.S. Dollar, as compared to Friday's closing of 73.60. 73.88 was the intraday low while 73.69 was today's highest point.
The rupee was the second worst performing currency in Asia in today's trading session. It was the worst performer among peers last week.
Earnings Reaction: Kotak Mahindra Bank Q2FY21
- Net Interest Income up 3% to Rs 3,463.2
- Net profit up 27% to Rs 2,184.5 crore
- Gross NPA at 2.55% from 2.7% last quarter
- Net NPA at 0.64% from 0.87% last quarter
- Provisions down 60% from the previous quarter to Rs 368.59 crore
- Provisions for Covid-19 for the current quarter at Rs 13 crore
- Overall provisions for Covid-19 at Rs 1,279 crore
- Capital Adequacy Ratio at 22.05%
- Had there been no Supreme Court verdict to not classify accounts as NPAs, the Gross and Net NPA would have been 2.7% and 0.74% respectively
- Casa ratio at 57.1% from 53.6% last year
- Net Interest Margin for the quarter at 4.52%
- Net profit and NII compared on a year-on-year basis
Shares recovered from the day's low to end 2% higher at Rs 1,410, snapping a two-day losing streak.
Buzzing Stock: Hero MotoCorp
- Top laggard on the Nifty 50 index
- Declines as much as 6.5% to Rs 2,908
- Biggest single-day drop in over five months
- Trading at the lowest level in a month
- Has declined in five out of the last six trading sessions
- Down 13% in the last six trading sessions
- Today's volumes are more than double its 20-day average
- Breaks below its 50-Day Moving Average at 3,074
- Stock heading towards oversold territory with Relative Strength Index (RSI) at 34
- Down 14% from its 52-week high of Rs 3,395 on October 16, 2020
- 33 out of the 52 analysts tracking the stock have a buy recommendation; 8 sell calls
- Return potential of the stock as per Bloomberg data is 6.4%
F&O Snapshot: Active Options Contracts
- Nifty October futures add 7.6% and 7.9 lakh shares in Open Interest.
- Nifty Bank October futures add 19% and 2.91 lakh shares in Open Interest.
Nifty: October 29 Expiry
- 12,000 Call: Premium down 65% to Rs 25. The contract has added 17.4 lakh shares in Open Interest.
- 11,800 Put: Premium up 152% to Rs 127.1. The contract has added 3.9 lakh shares in Open Interest.
- 11,900 Call: Premium down 59.2% to Rs 49.1. The contract has added 28 lakh shares in Open Interest.
Nifty Bank: October 29 Expiry
- 24,000 Put: Premium up 105.4% to Rs 405.6. The contract has added 44,775 shares in Open Interest.
- 25,000 Call: Premium down 64% to Rs 80. The contract has added 4.3 lakh shares in Open Interest.
- 24,500 Call: Premium down 58% to Rs 181.1. The contract has added 4.6 lakh shares in Open Interest.
Earnings Reaction: Poly Medicure Q2FY21
- Revenue up 17% to Rs 190.2 crore
- Net profit up 23% to Rs 33.2 crore
- Ebitda up 33% to Rs 53.9 crore
- Ebitda margin at 28.3% from 24.8%
- All numbers are standalone and compared on a year-on-year basis
Shares are off the day's low after falling as much as 3.1% to Rs 477.9. The stock currently trades 1% lower at Rs 489.
Where Has LIC Invested In The June Quarter
How Are The Sectoral Indices Faring
Earnings Reaction: Nestle India Q3CY20
- Revenue up 10% to Rs 3,541.7 crore
- Net profit down 1% to Rs 587 crore
- Ebitda up 15% to Rs 883.5 crore
- Ebitda margin at 24.9% from 23.8%
- Brands like Maggi noodles & sauces, Munch, Nestle Classic and Nescafe sunrise saw double-digit growth during the quarter.
- Sales through e-commerce channels almost doubles; contributes 4% to overall sales
- Domestic sales rose 10.2% to Rs 3,350 crore
- Plans to invest Rs 2,600 crore over the next 3-4 years to expand its existing manufacturing capacities and to start a new factory at Sanand, Gujarat.
- All numbers are compared on a year-on-year basis
Shares rose as much as 3.2% to Rs 16,375 and is among the top gainers on the Nifty 50 index. Many brokerages have either upgraded or raised their price targets on the stock post results.
Buzzing Stock: IFB Industries
- Among top gainers on the Nifty Smallcap index
- Gains as much as 10.5% to Rs 793.8
- Biggest single-day gain in a month
- Trading at the highest level since November 2019
- Snaps four-day losing streak
- Today's volumes are more than quadruple its 20-day average
- Stock remains in overbought territory with Relative Strength Index (RSI) at 79
- Trading near its 52-week high of Rs 805 on October 31, 2019
- Two out of the three analysts tracking the stock have a buy recommendation; 0 sell calls
- The stock trades 45.2% higher than its 12-month consensus price target of Rs 427, implying a negative return potential
Metal Stocks Are The Top Laggards
Markets At Noon
- Benchmark indices trading at the day's low
- Nifty down 0.8% at 11,838
- Sensex down 0.76% at 40,377
- Nifty Bank down 1% at 24,242
- Nifty Midcap index down 1%
- Nifty Smallcap index down 0.4%
- India Volatility Index up 4% at 22.67
- Nifty Metal index is the top sectoral laggard; down 2.7%
- Nifty Media is the other sectoral laggard; down 2%
- Nifty Auto and Nifty Realty index down 1.5% each
- Nestle India is the top Nifty gainer; up 2.5%
- JSW Steel remains the top Nifty laggard; down 4%
- 36 out of the 50 Nifty stocks trading with losses
- 686 stocks on the NSE are trading with gains while 1,089 stocks are declining
Earnings Reaction: Sudarshan Chemicals Q2FY21
- Revenue up 1% at Rs 428.9 crore
- Net profit down 34% to Rs 30.3 crore
- Ebitda up 2% to Rs 67.7 crore
- Ebitda margin at 15.8% from 15.6%
- Deferred tax reversal of Rs 10.2 crore in the base quarter
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 4.2% to Rs 467.4 and are trading at the day's low. The stock has snapped a four-day gaining streak.
Buzzing Stock: Century Plyboards
- Trading at a 52-week high
- Gains as much as 4% to Rs 195.65
- Up for the fifth straight day
- Longest winning streak in over two months
- Has gained 12% in the last five trading sessions
- Trading at the highest level since April 2019
- Today's volumes are nearly five times its 20-day average
- Trading well above all key Daily Moving Averages
- Stock in overbought territory with Relative Strength Index (RSI) at 75
- Has doubled from its 52-week low of Rs 95 on March 23, 2020
- 17 out of the 20 analysts tracking the stock have a buy recommendation; 2 sell calls
- The stock trades 13.3% higher than its 12-month consensus price target of Rs 168.5, implying a negative return potential
Earnings Reaction: Persistent Systems Q2FY21
- U.S. Dollar revenue up 3.9% to $136.09 million
- Revenue up 2% to Rs 1,007 crore
- Net profit up 13% to Rs 101.9 crore
- Ebit up 19% to Rs 121.7 crore
- Ebit margin at 12.1% from 10.4%
- Revenue crosses Rs 1,000 crore for the first time ever
- Contribution from top client at 19.4% of revenue
- Contribution from top five clients at 41.6% of revenue
- Contribution from top 10 clients at 50.5% of revenue
- All numbers are consolidated and compared on a quarter-on-quarter basis
Shares gained as much as 4% to Rs 1,220, snapping a two-day losing streak.
Stock Reaction: TCS
The company has announced that Volt - Australia's first neobank, has partnered with TCS to power its next generation banking, called Volt 2.0 as a service platform.
Volt will leverage TCS BaNCS, a global payments solution to expand its offerings, enable full-service banking capabilities for all its customers. The product is set to launch in 2021, the company said.
“Our deep knowledge and experience with payments technology will enable us to support Volt with a full-service, end-to-end solution leveraging TCS BaNCS,” Vikram Singh, Country Head of Australia & New Zealand at TCS was quoted as saying.
Shares are currently trading 0.4% higher at Rs 2,699, up for the second straight day.
Stock Reaction: Coforge
Shares of the I.T. company are declining for the fourth straight day today after over 19.5 lakh shares exchanged hands on the National Stock Exchange.
The total number of shares exchanged, amount to 3.2% of the total equity of the company, as per data compiled by Bloomberg.
Buyers and sellers in the trade remain unknown.
Shares fell as much as 6.1% to Rs 2,235, to the lowest level in a month.
Large Trade Alert: Indian Hotels
37 lakh shares of the hotel company exchanged hands in a single large deal on the Bombay Stock Exchange, as per data available on Bloomberg.
The deal took place at Rs 99.85 per share and is d at Rs 37 crore.
Buyers and sellers of the trade remain unavailable.
Shares fell as much as 3.3% to Rs 97.25, after the deal took place.
Earnings Reaction: Aarti Drugs Q2FY21
- Revenue up 21% to Rs 578.1 crore
- Net profit up 133% to Rs 75.2 crore
- Ebitda up 71% to Rs 116.5 crore
- Ebitda margin at 20.2% from 14.3%
- Declares interim dividend of Rs 2.5 per share
- Record date for payment of dividend set at November 4, 2020
- Board approves raising of funds up to Rs 350 crore through various methods
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 4.4% to Rs 717, down to the lowest level in a month.
Stock Reaction: Dilip Buildcon
The company's wholly-owned subsidiary - Narenpur-Purnea Highways, has executed the concession agreement with the National Highways Authority of India (NHAI).
The agreement pertains to the construction and upgradation of NH-131A from Narenpur to Purnea to four lanes in the state of Bihar on an HAM basis.
The bid project cost for the same is Rs 1,905 crore, the company said.
The completion period is 24 months and operation period is 15 years from Date of Completion.
Shares recovered from the day's low to gain as much as 4.1% to Rs 350.8, before cooling off.
Earnings Reaction: Polycab India Q2FY21
- Revenue down 6% to Rs 2,113 crore
- Net profit up 14% to Rs 221.5 crore
- Ebitda up 15% to Rs 311.8 crore
- Ebitda margin at 14.8% from 12.1%
- Higher other income contributes to net profit
- Other income nearly triples to Rs 32.7 crore from Rs 12.4 crore
- Wires and cables revenue down 5% to Rs 1,826 crore
- FMEG revenue up 25% to Rs 243.9 crore
- Copper business revenue at Rs 130.3 crore
- Consumer facing businesses have started seeing growth compared to last year
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 6.1% to Rs 935 and are up for the fifth straight day. The stock is trading at the highest level in over seven months. It is also the top gainer on the Nifty Midcap index.
Stock Reaction: Aurobindo Pharma
The company's wholly-owned, step-down subsidiary has entered into a definitive agreement with New Mountain Capital and its affiliate Jarrow Formulas to dispose of its business assets as a going concern with related assets, liabilities, products, brands and employees.
The deal is for a cash consideration of $550 million or Rs 4,048 crore at the current exchange rate and is likely to be completed by January 2021, subject to regulatory approvals and closing conditions, Aurobindo said in a statement.
Natrol's annual sales for the 12-month period ending March 31, 2020 stood at $157 million.
"Proceeds from Natrol's sale will be used to reduce debt and other new strategic initiatives," the company's Managing Director N Govindarajan said.
Shares gained as much as 4% to Rs 814.5, post the announcement, up for the second straight day.
Markets At 10:10 A.M.
- Benchmark indices trade with modest losses
- Nifty down 0.2% at 11,905
- Sensex down 0.2% at 40,601
- Nifty Bank unchanged at 24,486
- Nifty Midcap index down 0.1%
- Nifty Smallcap index up 0.2%
- India Volatility Index up 4.2% to 22.74
- Nifty Metal is the top sectoral laggard; down 2%
- Nifty Realty is the other sectoral laggard; down 1.1%
- Nifty PSU Bank and Nifty Pharma up 0.6% and 0.4% respectively
- Nestle India is the top Nifty gainer; up 2.4%
- JSW Steel is the top Nifty laggard; down 3.9%
- 924 stocks on the NSE are trading with gains while 778 are declining
Money Market Update
The currency has opened weaker in today's session after ending as the worst performer in Asia last week.
The rupee opened at 73.77 against the U.S. Dollar, as compared to Friday's close of 73.60. India's forex reserves rose further last week to $555.16 billion.
Bond markets will be focusing on the weekly debt auction that saw strong demand from investors and minutes from the latest policy meet of the MPC, which showed that the new committee is keen to do more to support growth.
Earnings Reaction: JSW Steel Q2FY21
- Revenue up 10% to Rs 19,264 crore
- Net profit down 37% to Rs 1,595 crore
- Ebitda up 62% to Rs 4,414 crore
- Ebitda margin at 22.9% from 15.5%
- Net debt-Ebitda at 4.73 times from 5.74 times
- On course to meet the annual guidance of 15 million tonnes of saleable steel
- Exports moderated to 28% in Q2 from 57% in Q2
- All numbers are consolidated and compared on a year-on-year basis
India's most d steelmaker was confident that it had turned a corner, as domestic steel demand showed signs of rebounding from the recent low.
JSW Steel's crude steel production recovered in the July-September period to 3.85 million tonnes, similar to last years levels, after a decline of 30% last quarter.
Shares fell as much as 4.5% to Rs 307, down for the second straight day. The stock is also the top laggard on the Nifty 50 index. Brokerages however, have raised their price target on the stock, citing a strong rebound in H2FY21.
Stock Reaction: Future Group & RIL
The Singapore International Arbitration Center had asked the Future Group to put the deal with Reliance Retail on hold.
While Amazon welcomed the decision, Reliance Retail put out a statement on Sunday night, stating that it has entered into the transaction under proper legal advice and the rights and obligations are fully enforceable under Indian law.
“RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with the Future group without any delay,” it said in the statement.
Future Retail in its clarification has said that it is examining the order and that the company is not a party to the agreement under which Amazon has invoked the arbitration proceedings.
“FRL has been legally advised that actions taken by the FRL / its board, which are in full compliance of the relevant agreements and eminently in the interest of all stakeholders cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party,” the statement said.
Shares of Reliance Industries fell as much as 2% to Rs 2,070. Future Group companies too are down between 5-10% post the order.
Coronavirus India Updates
- 45,148 new cases reported in the last 24 hours
- Total confirmed cases at 79,09,959
- Active cases now at 6,53,717
- Patients cured / discharged / migrated at 71,37,228
- Death toll rises to 1,19,014
- 480 deaths reported in the last 24 hours
- 59,105 patients recovered in the last 24 hours
Stock Reactions: Kotak Mahindra Bank & IndusInd Bank
Bloomberg News reported on Sunday evening that Kotak Mahindra Bank is exploring a takeover of IndusInd Bank in an all-stock acquisition, citing people with knowledge of the matter.
Uday Kotak and the Hinduja Family are said to have held talks over the proposal in which the founders of IndusInd Bank can retain a stake in the lender, after the deal, according to another source.
While Kotak Mahindra Bank's spokesman declined to comment, IndusInd Bank in an exchange filing on Sunday night called the news as rumours, terming them as 'malicious, untrue and baseless.'
“The founders reiterate their full support to IndusInd Bank, now and always,” the statement said.
Shares of Kotak Mahindra Bank fell as much as 0.8% to Rs 1,371, down for the third straight day. The lender will also be reporting their second quarter earnings today.
On the other hand, shares of IndusInd Bank rose as much as 4.1% to Rs 633.3, snapping a two-day losing streak.
Opening Bell: A Subdued Start
Indian equity markets have begun the options expiry week for the October F&O series on a flat note.
The S&P BSE Sensex opened 35 points lower at 40,649 while the NSE Nifty 50 was little changed, up 7 points at 11,937, at the start of trade. Both benchmark indices had registered gains of over 1% last week.
Sectoral indices too have opened on a flat note. The Nifty Pharma and Nifty FMCG indices have opened with gains of 0.5% each, while the Nifty Metal index is down 0.4%. Other indices have opened flat.
Broader markets are outperforming the benchmarks in the early minutes of trade. The Nifty Midcap index is up 0.3% while the Smallcap index has opened 0.4% higher.
Market breadth is in favour of the advances. 1,003 stocks on the NSE have opened with gains while 462 are declining.
Current Market Update
Trading Ideas For The Day
- Nifty: Sell 12,100 Call of the October 29 expiry in the range of Rs 36-38. Target of Rs 23-13 and stop loss of Rs 52.
- Nifty Bank: Buy in the range of 24,250-24,300 for target of 24,500-24,700 and stop loss of 24,150
- Buy ITC October futures for target of Rs 174.1 and Rs 178.3 with a stop loss of Rs 168.4
- Sell Bajaj Finserv October futures for target of Rs 5,760.5 and Rs 5,652.5 and stop loss of Rs 5,904.5.
- ITC and Bajaj Finserv are intraday recommendations
Source: ICICI Direct
How Did The Fund Flows Fare On Friday
Key Stocks In Focus
- Kotak Mahindra Bank & IndusInd Bank: Bloomberg News reports that Kotak Mahindra Bank is exploring a takeover of IndusInd Bank, citing people with knowledge of the matter. Sources said that Uday Kotak, the bank's founder & CEO is looking at the possibility of an all-stock acquisition. While Kotak Mahindra Bank's spokesman declined to comment, IndusInd "completely denied the rumour and considered it malicious, untrue and baseless."
- Future Group: Directed to put its transaction with Reliance Retail on hold for now after the Singapore International Arbitration Centre passed an interim order. However, Reliance Retail has said that it will still proceed with the acquisition as it is 'fully enforceable under Indian law and has been done with proper legal advice.' Amazon has welcomed the order.
- Aurobindo Pharma: Wholly-owned step-down subsidiary, Natrol LLC, USA has entered into a definitive agreement with New Mountain Capital LLC and its affiliate to dispose of its business assets as a going concern with related assets, liabilities, products, brands and employees. The deal will be done for a cash consideration of $550 million and is expected to close by January 2021. Natrol's annual sales for the 12-months ending March 31, 2020 stood at $157 million.
- Vedanta: Declares first interim dividend of Rs 9.5 per share. Record date for the same set at October 31.
- Larsen & Toubro: To consider and approve special dividend at its board meeting on October 28. The record date for the same has been set at November 5.
- Nifty Earnings Today: SBI Life Insurance, Kotak Mahindra Bank
- Non-Nifty Earnings Today: Torrent Pharma, M&M Financial, Poly Medicure, Swaraj Engines, Finolex Industries, GHCL, Max Ventures, Angel Broking
To know about earnings reported after market hours, key brokerage updates and F&O Cues, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
A Volatile Day Ahead?
Good Morning!
Indian equity markets ended a week of consolidation with modest gains on Friday. The S&P BSE Sensex and NSE Nifty 50 ended with gains of 1% each.
Futures, however, are indicating a flat start to the October futures and options series expiry week. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 11,936 as of 7:55 a.m. on Monday.
Investors will watch out for stocks like Kotak Mahindra Bank, IndusInd Bank, Future Group companies and Reliance Industries for related news flow.
Stocks like JSW Steel, Nestle India, Tech Mahindra, Aarti Drugs, CDSL and Persistent Systems may react to quarterly earnings reported after market hours on Friday and over the weekend.
Kotak Mahindra Bank and SBI Life Insurance are the two Nifty companies that will report their quarterly results today, along with broader market companies such as GHCL, Torrent Pharma, Mahindra & Mahindra Financial and Swaraj Engines.
Globally, Asian markets are mixed at the start of the new trading week. Benchmark indices have slipped in China and Japan, while those in South Korea are fluctuating. Hong Kong markets are shut today due to holiday.
Futures on the Dow Jones are trading lower by 150 points. The index ended flat on Friday.
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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