Sensex, Nifty Log Their Worst Decline In Over Two Weeks

Indian equity benchmarks erased their opening gains and declined the most in over two weeks. The S&P BSE Sensex Index closed 0.98 percent lower at 34,812 and the NSE Nifty 50 Index closed at 10,482.20, down 0.97 percent.

The market breadth was tilted in favour of sellers. Ten out of 11 sectoral gauges compiled by NSE declined, led by the NSE Nifty Auto Index's 2.4 percent fall. On the flipside, NSE Nifty IT Index was the only sectoral gainer, up 0.7 percent.

Britannia Industries reported a net profit of Rs 303 crore during the three months ended September, an increase of 16 percent from the year-ago period, according to its stock exchange notification.

Key earnings highlights (Q2, YoY)

• Net profit up 16 percent at Rs 303 crore.
• Revenue up 12.8 percent at Rs 2,870 crore.
• Ebitda up 20.5 percent at Rs 454.4 crore.
• Margin at Rs 15.8 percent versus 14.8 percent.

The Indian weakened further and depreciated as much as 0.79 percent to trade at 73.06 per U.S. dollar.

Shares of Eicher Motors declined for the second day and fell as much as 1.8 percent to Rs 22,084 ahead of its quarterly results announcement for the July-September period.

The stock is 27 percent below the Bloomberg consensus one-year price target. The scrip declined 27 percent so far this year.

GMR infra: About one crore shares changed hands in a single block deal, Bloomberg reported. Buyers and sellers were not known immediately.

Shares of Tata Steel rose as much as 3.1 percent to Rs 589.80.

About 11.2 lakh shares changed hands in a single block deal, according to Bloomberg data. Buyers and sellers were not known immediately.

The Stock was the best performer on Sensex and Nifty.

Shares of the Jaguar Land Rover (JLR) owner fell as much as 3.6 percent to Rs 188.15.

The company's JLR October sales fell 4.6 percent on a yearly basis to 44,282 units. Retails sales rose strong in the U.K. by 46.9 percent and North America by 24.1 percent. However, the company stated that these gains were offset by China’s sales decline by 49 percent on account of trade tensions with the U.S. Felix Brautigam.

The stock was the worst performer On Sensex and second-worst performer on Nifty.

Shares of the welded tubes and pipes manufacturer rose as much as 2.4 percent to Rs 895.

The company received an order of about Rs 165 crore, according to its stock exchange filing.

The stock traded at 27.5 times trailing 12-month earnings per share and 18 times its estimates for the coming year, according to Bloomberg data.

• Indian equity benchmarks erased its opening gains.
• The S&P BSE Sensex Index fell as much as 0.18 percent to 35,094.33 and the NSE Nifty 50 Index fell as much as 0.13 percent to 10,571.55.
• About 930 stocks declined and 715 stocks advanced on National Stock Exchange.

Shares of airline operators declined in today's trade after the Brent crude snapped its four-day losing streak and rose 1.7 percent to trade at $71.38 per barrel.

Shares of the petrochemicals and fertilisers maker fell as much as 2.4 percent to Rs 38.95.

The company's auditors report that the firm has a net loss of Rs 66.3 crore in this quarter and the net-worth of the company has been fully eroded. In their Emphasis of Matter paragraph in their Limited Review, they also stated that there exists a condition of a material uncertainty which may cast significant doubt as to company’s ability to continue as a going concern.

Shares of the pharmaceutical company rose as much as 8.7 percent to Rs 566.80, its highest in over a month.

The company announced its quarterly results for the July-September period last week in a regulatory filing.

Key earnings highlights (Q2, YoY)

• Revenue up 10 percent at Rs 1,126 crore.
• Net loss of Rs 23 crore versus net loss of Rs 3 crore
• Other income of Rs 55 crore in the base quarter
• Ebitda up 6.5 times at Rs 52 crore versus Rs 8 crore.
• Margin at 4.6 percent versus 0.8 percent.

Trading volume was 7.6 times its 30-day average, according to Bloomberg data. The stock declined 39.6 percent so far this year compared to a 4.9 percent advance in the Sensex.

Shares of the drugmaker pared early losses and rose as much as 2.5 percent to Rs 876. The pharmaceutical company's Nagpur facility received an Establishment Inspection Report from the U.S. drug regulator, according to its stock exchange notification.

Lupin traded at 30.5 times trailing 12-month earnings per share and 31 times its estimates for the coming year, according to Bloomberg data.

Shares of the shrimp feed distributor fell as much as 14.3 percent, the most since June 05, to Rs 361.75.

Key earnings highlights (Q2, YoY)

• Revenue down 12 percent at Rs 754.5 crore.
• Net profit down 60 percent at Rs 46.4 crore.
• Ebitda down 61.4 percent at Rs 72 crore.
• Margin at 9.6 percent versus 21.9 percent.

Trading volume was 18.8 times its 30-day moving average, Bloomberg data showed. The scrip declined 54.1 percent so far this year compared to a 5 percent advance in the Sensex.

About 10 lakh shares of Adani Ports changed hands in a block deal on BSE, according to Bloomberg data. Buyers and sellers were not known immediately.

Shares of the jewellery maker rose as much as 3.9 percent to Rs 881. The stock was the best performer on Nifty. The company's profit rose at the slowest pace in two years and missed estimates.

Key earnings highlights (Q2, YoY)

• Net profit up 3 percent at Rs 314 crore.
• Net sales up 26 percent at Rs 4,406 crore.
• Ebitda up 5 percent at Rs 466 crore.
• Margin 10.6 percent versus 12.7 percent.

Here's what analysts had to say about Titan post Q2:

Deutsche Bank Research

• Maintained ‘Buy’; hiked price target to Rs 1,100 from Rs 1,050
• Good September quarter with strong jewellery sales growth
• The second half of the current financial year is expected to be better with retail sales growing 29 percent on a yearly basis in the first 40 days of December quarter.
• Expect a virtuous cycle of market share gains to continue.

Morgan Stanley

• Maintained ‘Overweight’ with a price target of Rs 1,250
• September quarter’s Ebitda adjusting for one-offs is below estimates on account of the higher ad and other expenses.
• Believe Titan is on track to achieve above 25 percent revenue growth in jewellery for the current financial year.
• Watch segment performance ahead of expectations.

Indian equity benchmarks resumed rally after a one-day blip. The S&P BSE Sensex Index rose as much as 0.45 percent to 35,316.40 and the NSE Nifty 50 Index rose as much as 0.5 percent to 10,637.65.

The market breadth was tilted in favour of buyers. Nine out of 11 sectoral gauges compiled by NSE advanced, led by NSE nifty IT Index's 0.7 percent gain. On the flipside, NSE Nifty PSU Bank Index was the top sectoral loser, down 0.3 percent.

The Indian rupee opened at 72.67 against the U.S. dollar after depreciating 0.25 percent.

F&O Cues

• Nifty November futures closed trading at 10,624, premium of 38 points.
• Nifty November OI down 0.4 percent; Nifty Bank November OI up 7.6 percent.
• Max OI for November series at 11,000 Call, OI at 29.9 lakh shares.
• Max OI for November series at 10,200 Put, OI at 32.4 lakh shares.

Put-Call Ratio

• Nifty PCR at 1.61 from 1.60.
• Nifty Bank PCR at 1.17 from 1.11.

On Titan

Deutsche Bank Research

• Maintained ‘Buy’; hiked price target to Rs 1,100 from Rs 1,050
• Good September quarter with strong jewellery sales growth
• Second half of the current financial year is expected to be better with retail sales growing 29 percent on a yearly basis in first 40 days of December quarter.
• Expect virtuous cycle of market share gains to continue.

Morgan Stanley

• Maintained ‘Overweight’ with a price target of Rs 1,250
• September quarter’s Ebitda adjusting for one-offs is below estimates on account of higher ad and other expenses.
• Believe Titan is on track to achieve above 25 percent revenue growth in jewellery for the current financial year.
• Watch segment performance ahead of expectations.

More Calls

Nomura on Tata Motors

• Maintained ‘Buy’ with a price target of Rs 260.
• JLR October 2018 global retail sales remained weak.
• Company indicated that the turnaround plan with dealers to balance production with demand in China.
• JLR will have a tough December quarter due to inventory corrections.

Motilal Oswal on Amara Raja

• Maintained ‘Buy’; raised price target to Rs 902 from Rs 858.
• Strong revenues supported by growth in auto/industrial/exports.
• Ebitda margin driven by favorable mix and lower lead price.
• Expect healthy growth in Industrial and four wheeler battery revenue.

Motilal Oswal on India Cement

• Maintained ‘Neutral’; cut price target to Rs 93 from Rs 96.
• Revenue inline; net profit miss due to forex headwinds.
• Revenue growth led by healthy demand in south market.
• Cut estimates to factor in higher depreciation and interest rate on announced capacity expansion.

• Sakuma Exports ex-date for share split from Rs 10 to Rs 1.
• Nalco and NLC ex-date for buyback window to open.
• Eldeco Housing & Industries price band revised to 10 percent.
• Elpro International , KIC Metaliks price band revised to 5 percent.

• Texmaco Infra & Holdings: Promoter Zuari Global acquired 17.2 lakh shares or 1.35 percent equity at Rs 58 each.
• Setco Automotive: Promoter Setco Engineering sold 15 lakh shares or 1.12 percent equity at Rs 38 each.

Titan (Q2, YoY)

• Net profit up 3 percent at Rs 314 crore.
• Net sales up 26 percent at Rs 4,406 crore.
• Ebitda up 5 percent at Rs 466 crore.
• Margin 10.6 percent versus 12.7 percent.

Shankara Building Products (Q2, YoY)

• Revenue up 12.6 percent at Rs 643.9 crore.
• Net profit down 47.4 percent at Rs 9.1 crore.
• Ebitda down 24.3 percent at Rs 31.1 crore.
• Margin at 4.8 percent versus 7.2 percent.

Igarashi Motors (Q2, YoY)

• Revenue up 9.5 percent at Rs 125.5 crore.
• Net profit down 11 percent at Rs 14.6 crore.
• Ebitda down 6.6 percent at Rs 25.3 crore.
• Margin at 20.2 percent versus 23.6 percent.

HealthCare Global Enterprises (Q2, YoY)

• Revenue up 15.9 percent at Rs 244.7 crore versus Rs 211.1 crore.
• Net Loss at Rs 6.5 crore versus net profit of Rs 10 crore.
• Ebitda up 5.8 percent at Rs 32.9 crore.
• Margin at 13.4 percent versus 14.7 percent.

Sobha (Q2, YoY)

• Revenue up 1.9 percent at Rs 658.7 crore.
• Net profit up 22.1 percent at Rs 61.4 crore.
• Ebitda up 12.3 percent at Rs 140.2 crore.
• Margin at 21.3 percent versus 19.3 percent
• Increase in inventory worth Rs 15.5 crore in the current quarter.

VST Tillers Tractors (Q2, YoY)

• Revenue down 17.6 percent at Rs 144.6 crore.
• Net profit down 50.8 percent at Rs 9.2 crore.
• Ebitda down 88.5 percent at Rs 2.8 crore.
• Margin at 1.9 percent versus 13.9 percent.
• Other Income at Rs 16 crore versus Rs 5.8 crore.

EID Parry (Q2, YoY)

• Revenue up 14.1 percent at Rs 5838.4 crore.
• Net profit down 50.4 percent at Rs 106.1 crore.
• Ebitda up 2.1 percent at Rs 603.6 crore.
• Margin at 10.3 percent versus 11.6 percent.
• Other Income of Rs 73.2 crore in base quarter.

Goodricke (Q2, YoY)

• Revenue up 9.2 percent at Rs 219.1 crore.
• Net profit down 3.6 percent at Rs 53.1 crore.
• Ebitda down 7.9 percent at Rs 53.4 crore.
• Margin at 24.4 percent versus 28.9 percent.

India Energy Exchange (Q2, YoY)

• Revenue up 19.9 percent at Rs 66.9 crore.
• Net profit up 30.6 percent at Rs 42.7 crore.
• Ebitda up 17.6 percent at Rs 54.7 crore.
• Margin at 81.8 percent versus 83.3 percent.

Fertilizers and Chemicals Travancore (Q2, YoY)

• Revenue down 11.8 percent at Rs 534 crore.
• Net loss at Rs 51.9 crore versus net profit of Rs 2.8 crore.
• Ebitda down 85.3 percent at Rs 13 crore.
• Margin at 2.4 percent versus 14.7 percent.

Fortis Malar Hospitals (Q2, YoY)

• Revenue flat at Rs 37.1 crore
• Net profit down 79 percent at Rs 0.4 crore.
• Ebitda loss at Rs 0.5 crore versus Ebitda of Rs 1.2 crore.

Wockhardt (Q2, YoY)

• Revenue up 10 percent at Rs 1,126 crore.
• Net loss of Rs 23 crore versus net loss of Rs 3 crore
• Other income of Rs 55 crore in base quarter
• Ebitda up 6.5 times at Rs 52 crore versus Rs 8 crore.
• Margin at 4.6 percent versus 0.8 percent.

IFGL Refractories (Q2, YoY)

• Revenue up 10 percent at Rs 219 crore
• Net profit up 47 percent at Rs 14 crore.
• Ebtida up 13 percent at Rs 30.5 crore.
• Margin at 13.9 percent versus 13.6 percent.

• Apex Frozen Foods
• Aurobindo Pharma
• Bank of India
• Brigade Enterprises
• Britannia Industries
• Jamna Auto Industries
• Jet Airways
• Jindal Saw
• JK Paper
• Mcleod Russel India
• NALCO
• NMDC
• Oil India
• Quick Heal Technologies
• Uco Bank
• Union Bank Of India
• Rashtriya Chemicals and Fertilizers

Coal India Q2 Preview (Consolidated YoY)

• Revenue seen 20 percent higher at Rs 21,825 crore.
• Net profit seen at seen at Rs 3,137 crore versus Rs 369 crore.
• Ebitda seen at Rs 4,529 crore versus Rs 1,289 crore.
• Margin seen at 21 percent versus 7.3 percent.

Eicher Motors Q2 Preview (Consolidated YoY)

• Revenue seen 12 percent higher at Rs 2,420 crore.
• Net profit 12 percent higher at seen at Rs 580 crore.
• Ebitda 12 percent higher at Rs 762 crore.
• Margin seen at 31.5 percent versus 31.5 percent.

• 5:30 p.m.: India Sept. industrial production YoY; estimate 4.26 percent (prior 4.3 percent).
• 5:30 p.m.: India Oct. YoY consumer price inflation; estimate 3.6 percent (prior 3.77 percent).

• Tata Motors’ JLR October sales down 4.6 percent to 44,282 units on a year-on-year basis. Retails sales rose strong in the U.K. by 46.9 percent and North America by 24.1 percent , but the company stated that these gains were offset by China’s sales decline by 49 percent on account of trade tensions with the U.S. Felix Brautigam. Jaguar Land Rover Chief Commercial Officer said, “As announced last week, we are implementing a turnaround plan and taking all the necessary steps to rejuvenate our business especially in China. This involves working closely with our sales network and balancing production with demand in the present market conditions to achieve healthy development for our future that is not unduly dependent on incentives.”
• Wipro’s acquired entity Appirio launched a new office in Porto, Portugal to expand its European operations. The new office will have a commercial cloud digital centre, delivery centre and an innovation hub.
• Fertilizers and Chemicals Travancore’s auditors report that the company has a net loss of Rs 66.3 crore in this quarter and the net-worth of the company has been fully eroded. In their Emphasis of Matter paragraph in their Limited Review, they also stated that there exists a condition of material uncertainty which may cast significant doubt as to company’s ability to continue as a going concern.
• Amara Raja Batteries’ board approves capex of Rs 540 crore towards deployment of advanced stamped grid technology, second punching line for two-wheeler battery plant in a phased manner and debottlenecking in MVRLA plant.
• Premier Explosives received arm license from Arms License Issuance Authority for manufacture of ammunition, propellants and compounds at greenfield Katepally plant in Telangana.
• Bharti Airtel commenced tender offer to purchase $1.5 billion worth notes due 2023.
• Orient Press received an approval from Maharashtra Pollution Control Board to restart manufacturing at Tarapur plant. Company derives 46.54 percent of gross revenues from plant.
• Jet Airways board likely to consider multiple fundraising options today, according to a report by Business Standard.
• Government plans to sell 149 fields of ONGC to private companies, PTI reported.

• U.S. bond markets are closed Monday in observance of Veterans’ Day.
• San Francisco Fed President Mary Daly speaks on the economic outlook at a regional development conference in Idaho Falls, Idaho.
• Tuesday marks the deadline set by EU for Italy to revise its budget.
• Chinese industrial production and retail sales data due Wednesday.
• Fed Chairman Jerome Powell discusses national and global economic issues with Dallas Fed President Robert Kaplan at an event hosted by the Dallas Fed.
• U.S. consumer inflation probably rebounded in October after easing in September. The consumer price index data is projected to show a 0.3 percent increase for the prior month.
• Policy decisions are coming from central banks in Mexico, Philippines, and Thailand.

• About 357 infrastructure projects show cost overruns of over Rs 3.39 lakh crore.
• Wipro, L&T Infotech among 7 firms shortlisted to beef up SEBI’s surveillance activities.
• This ugly fight for the Central Bank is hurting India.
• Jack Ma heads toward retirement with another Singles' Day record.
• Falling oil prices are becoming an emerging-markets catalyst.
• Oil pares bear market collapse on prospect of OPEC curbs in 2019.
• Deadly California fires cause record damage, mass evacuations.

• West Texas Intermediate crude climbed 1 percent to $60.78 a barrel. It’s dropped about 20 percent from an Oct. 3 peak.
• Brent crude snapped its four-day decline, up 1.2 percent.
• Gold was steady at $1,210.77 an ounce, after sinking 1.2 percent Friday to hit the weakest in a month.

Shanghai Exchange:

• Copper fell for the fifth day, down 0.8 percent.
• Zinc rose for the second day, up 1.1 percent.
• Steel resumed declines after a one-day rally, down 2.2 percent.
• Aluminium fell for the second day, down 0.4 percent.
• Rubber fell for the third day, down 0.9 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.16 percent to 10,605 as of 8:30 a.m.

Asian stocks kicked off the week with declines following a weak U.S. session on Friday. Shares fell in Japan, Australia and South Korea. Futures trading from late Friday pointed to declines in Hong Kong.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.