Sensex, Nifty Rally In Afternoon Trade To Erase Most Of Yesterday’s Loss

Indian equity benchmarks rallied in the afternoon after a topsy-turvy trade, erasing most of yesterday’s loss.

The S&P BSE Sensex index ended 0.95 percent higher at 35,144 and the NSE Nifty 50 Index ended at 10,582.50, up 0.96 percent.

The market breadth was tilted in favour of buyers. About 875 stocks advanced and 848 shares declined on National Stock Exchange. Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Private Bank index's 1.2 percent gain. On the flipside, the NSE Nifty Pharma index was the top sectoral loser, down 1.4 percent.

United Bank of India's net loss widens during the three months ended September, according to its stock exchange notification.

Key earnings highlights (Q2, YoY)

• Net loss at Rs 883 crore versus net loss of Rs 345 crore.
• NII up 18 percent at Rs 442.6 crore.
• Provisions at Rs 1,097 crore versus Rs 698 crore (QoQ).
• Gross NPA at 22.69 percent versus 15.17 percent (QoQ).
• Net NPA at 14.36 versus 15.17 percent (QoQ).

Ashoka Buildcon

• Stock rose as much as 12.2 percent to Rs 138.
• Trading volume was 8 times its 20-day average.

Godrej Industries

• Stock rose as much as 9.4 percent to Rs 504.70.
• Trading volume was 10.7 times its 20-day average.

Radico Khaitan

• Stock rose as much as 8.4 percent to Rs 444.40.
• Trading volume was 3.6 times its 20-day average.

Himadri Speciality Chemical

• Stock fell as much as 8.5 percent to Rs 129.05.
• Trading volume was 2.1 times its 20-day average.

Wockhardt

• Stock fell as much as 8.6 percent to Rs 519.
• Trading volume was 3.5 times its 20-day average.

Shares of the countries largest pharmaceutical company fell as much as 5.7 percent to Rs 556.05 ahead of its results announcement.

Sun Pharma (Q2 Preview. YoY)

• Revenue seen 14 percent higher at Rs 7,600 crore.
• Net profit seen 14 percent higher at Rs 1,045 crore.
• Ebitda seen 22 percent higher at Rs 1,672 crore.
• Margin seen at 22.0 percent versus 20.7 percent.

Shares of Apollo tyres fluctuated between gains and losses after it announced its quarterly results for the July-September period.

Key earnings highlights (Q2, YoY)

• Revenue at Rs 4,257.3 crore versus Rs 3,476.6 crore.
• Net profit at Rs 197.2 crore versus 205.3 crore.
• Exceptional loss of Rs 70 crore due to IL&FS exposure.
• Ebitda up 28 percent at Rs 467.2 crore.
• Margin at 11 percent versus 10.5 percent.

Besides, Onkar S Kanwar and Neeraj Kanwar have voluntarily agreed to reduce their compensation for 2018-19 with immediate effect to fall in line with the new recommendations.

European shares rebound from Monday’s fall, which was the largest in three weeks, led by the resumption of trade talks.

Allahabad Bank’s net loss during the three months ended September widened to Rs 1,822 crore from Rs 70 crore registered during the year-ago period, according to its stock exchange notification.

Key earnings highlights (Q2, YoY)

• Net loss of Rs 1,822 crore versus net loss of Rs 70 crore.
• Provision at Rs 1,992 crore versus Rs 2,590 crore (QoQ).
• Gross NPA at 19.53 percent versus 15.97 percent (QoQ).
• Net NPA at 7.96 percent versus 7.32 percent (QoQ).

Shares of the lender fell as much as 14.4 percent, the most in over six years to Rs 35.65 apiece after the results announcement.

Shares of the construction company rose as much as 4.7 percent to trade at near two-month high at Rs 86.75. The company swung to profit during the three months ended September according to its stock exchange notification.

Key earnings highlights (Q2, YoY)

• Net profit at Rs 122.5 crore versus net loss of Rs 3 crore.
• Revenue at Rs 3,243 crore versus Rs 1,504 crore.
• Ebtida at Rs 401.4 crore.
• Margin at 12.4 percent.

• Indian equity benchmarks traded at day's high.
• The S&P BSE Sensex Index traded at over 400 points from the day's low, while the NSE Nifty 50 Index traded above 10,550.

IndusInd Bank Ltd., today, terminated its plans to acquire IL&FS unit—IL&FS Securities Ltd., the Mumbai-based lender said in a stock exchange notification, citing that the conditions were not satisfied within the stipulated time.

Shares of IndusInd Bank traded 1.5 percent lower at Rs 1,469 apiece.

Shares of the lender fell as much as 8.7 percent, the most in nearly two months, to Rs 79.60. The bank reported a net loss of Rs 1,156.3 crore during the three months ended September, according to its stock exchange filing.

Key earnings highlights (Q2, YoY)

• Net interest income up 0.6 percent at Rs 2,926.8 crore.
• Net loss at Rs 1,156.3 crore versus net profit at Rs 179.1 crore.
• Provisions at Rs 2,827.6 crore versus Rs 2259.7 crore (QoQ).
• GNPA at 16.36 percent versus 16.66 percent (QoQ).
• NNPA at 7.64 percent versus 8.45 percent (QoQ).

Foreign portfolio investors increased stake sequentially in Dewan Housing Finance Corporation Ltd. and Indiabulls Housing Finance Ltd. in the quarter ended September amid market rout, (more details here)

About 14.6 lakh shares of Power Finance Corp changed hands in a block deal, according to Bloomberg. Buyers and sellers were not known immediately.

• Indian equity benchmarks fluctuated between gains and losses.
• The S&P BSE Sensex Index traded a little changed at 34,803 and the NSE Nifty 50 Index traded at 10,484.
• About 890 stocks declined and 708 stocks advanced on National Stock Exchange

Shares of the pharmaceutical company swung between gains and losses to trade at Rs 791 apiece.

The company entered into an agreement to purchase research and development assets from Australia based Advent Pharma, which deals in complex specialty generics, according to its stock exchange notification. The total investment for this acquisition is pegged at $12.5 million.

Besides, the drumaker announced its quarterly results for the three months ended September.

Key earnings highlights (Q2, YoY):

• Revenue up 7.1 percent at Rs 4751.4 crore.
• Net profit down 21.7 percent at Rs 611.4 crore.
• Ebitda down 8.2 percent at Rs 1026 crore.
• Margin at 21.6 percent versus 25.2 percent.
• Exceptional loss of Rs 26.8 crore in the current quarter.
• Forex loss of Rs 39.7 crore in current quarter.

Shares of the pharmaceutical company fluctuated between gains and losses to trade at Rs 528.40.

The drugmaker plans to acquire 33 percent stake in Avenue Therapeutics for $35 million at $6 per share, according to its stock exchange notification. Avenue Therapeutics shares currently trade at $4.16 in the U.S.

Shares of the Royal Enfield maker rose as much as 1.3 percent to Rs 22,209. profit in the September-ended quarter missed analyst expectations as costlier raw material and higher employee benefits weighed on the maker of Royal Enfield motorcycles. (More details here).

Key earnings highlights (Q2, YoY)

• Revenue up 11.1 percent at Rs 2,408.2 crore.
• Net profit up 5.9 percent at Rs 548.8 crore.
• Ebitda up 6.9 percent at Rs 729.4 crore.
• Margin at 30.3 percent versus 31.5 percent.

Shares of the oil marketing companies rose in today's trade after the crude oil extended declines. The Brent crude fell 0.86 percent to trade at 69.52 a barrel.

The stocks were the best performers on the Nifty 50 Index.

Shares of the airline operator parred early losses and rose as much as 3.3 percent to Rs 250.20. The company reported a net loss of Rs 1,297 crore during the three months ended September. This is the third consecutive quarterly loss for the company.

Key earnings highlights (Q2, YoY):

• Revenue up 9.5 percent to Rs 6,161 crore.
• Ebitdar loss at Rs 346 crore versus Ebitdar profit at Rs 837 crore.
• Net loss at Rs 1,297 crore versus net profit at Rs 50 crore.
• Revenue includes a one-off item of Rs 111 crore.

Indian equity benchmarks traded lower for the second day, following its Asian counterparts. The S&P BSE Sensex Index fell as much as 0.4 percent to 34,672 and the NSE Nifty 50 Index fell as much as 0.4 percent to 10,440.55.

The market breadth was tilted in favour of sellers. Seven out of 11 sectoral gauges compiled by National Stock Exchange fell, led by the NSE Nifty Auto Index's 0.87 percent decline. On the flipside, NSE Nifty Pharma Index was the top sectoral gainer, up 0.4 percent.

The Indian rupee opened marginally higher against the U.S. dollar. The home currency appreciated as much as 0.2 percent to 72.74 against the greenback.

F&O Cues

• Nifty November futures closed trading at 10,504, premium of 21 points.
• Nifty November open interest up 2.3 percent; Nifty Bank November open interest down 14 percent.
• Max open interest for November series at 10,700 call option, (Open interest at 31.1 lakh shares)
• Max open interest for November series at 10,000 put option, (open interest at 48.1 lakh shares)

Stocks In F&O Ban

• Adani Power

Put-Call Ratio

• Nifty PCR at 1.51 from 1.60.
• Nifty Bank PCR at 0.85 from 1.17.

On Eicher Motors

CLSA

• Maintained ‘Buy’ with a price target of Rs 30,000
• Slight miss in September quarter; margins dipped sequentially due to higher fixed costs on a lower volume base.
• Several demand headwinds in recent months, but some silver lining.
• Royal Enfield growth slowdown hurting, but we retain faith in the franchise.

Macquarie

• Maintained ‘Outperform’; cut price target to Rs 30,000 from Rs 37,000.
• Earnings impacted by lower sales volumes.
• Margins lower due to negative operating leverage and model launch expenses.
• Mgmt. cut 2018-19 production by 25,000 units due to strike which is ongoing.

On Coal India

CLSA

• Maintained ‘Buy’ with a price target of Rs 360.
• September quarter’s operating income was ahead of estimates led by better-than-expected realisations.
• Realisations higher due to large FSA price hike and rising e-auction prices.
• Continue to like the stock given decent earnings growth outlook and attractive valuation.

Macquarie

• Maintained ‘Outperform’ with a price target of Rs 335.
• Strong prices drive in September quarter; adjusted operating income was inline.
• FSA realisations have stabilised; upside from strong linkage auction ahead.
• Risk reward attractive post divestment overhang; dividend yield could be higher.

On Aurobindo Pharma

Credit Suisse

• Maintained ‘Outperform’ with a price target of Rs 840.
• Strong beat in the U.S.; strategy of higher inventory delivering results.
• Beat largely driven by volume gains in existing products which is likely to sustain.
• Net debt reduction was lower than expected as inventory cycle continues to increase.

Citi

• Maintained ‘Buy’ with a price target of Rs 1,030.
• Reported strong September quarter results with beat on all fronts.
• Beat appears to be mainly driven by strong traction in the U.S.
• September quarter results validate that Auro is best placed; Q2 is just the start of an earnings ramp-up.

On Britannia

Macquarie

• Maintained ‘Underperform’ with a price target of Rs 4210.
• September quarter results were inline; domestic volume growth remains strong at 12 percent.
• Widening direct distribution, increasing presence in rural market and weaker states drive volume.
• Believe significant margin expansion going forward will be challenging.

BofAML

• Maintained ‘Buy’ with a price target of Rs 7,090.
• Strong September quarter with strong double-digit volume growth.
• Expect Britannia to see solid volume growth over the medium term.
• Margins to benefit from better operating leverage, improved product mix and cost-saving initiatives.

On Shree Cements

Macquarie

• Maintained ‘Outperform’ with a price target of Rs 20,537.
• September quarter was inline; strong volume partially offsets costs.
• Prices hikes and strong volume growth to drive margin expansion from the second half of the current financial year.
• Capacity growth to drive market-share gain in the current and the next financial year.

Morgan Stanley

• Maintained ‘Underweight’ with a price target of Rs 18,736.
• September quarter’s Ebitda above estimates driven by better than expected realisations.
• Volume growth was strong at 16 percent, in line with estimate.
• Net profit before tax down owing to lower other income.

More Calls

SBICAP on Jet Airways

• Maintained ‘Hold’ with a price target of Rs 291.
• Revenue supported by Rs 111 crore expected refund from a lessor.
• International market see improvement, domestic continues to face pressure.
• Payables shoot up on rising cash losses.

Nomura on Adani Ports

• Maintained ‘Neutral’; cut price target to Rs 380 from Rs 431.
• Strong delivery on volumes with significant improvements in cash generation.
• Fairly valued due to rising interest rates impacting asset valuations.
• Increase in pledged shares and financial weakness of group entities is an overhang.

• Usha Martin: Societe Generale acquired 18.9 lakh shares or 0.67 percent equity at Rs 44.88 each.

Coal India (Q2, YoY)

• Revenue up 22.3 percent to Rs 22,198.1 crore.
• Net Profit at Rs 3,084.7 crore versus Rs 370.4 crore.
• Ebitda at Rs 4,716 crore versus Rs 876.1 crore.
• Ebitda Margin at 21.3 percent versus 4.8 percent.
• Volume at 290.8 MT versus 269 MT.

Also Read: Q2 Results: Coal India Profit Rises Over Eight Times, Meets Estimates

Eicher Motors (Q2, YoY)

• Revenue up 11.1 percent at Rs 2,408.2 crore.
• Net profit up 5.9 percent at Rs 548.8 crore.
• Ebitda up 6.9 percent at Rs 729.4 crore.
• Margin at 30.3 percent versus 31.5 percent.

Also Read: Q2 Results: Eicher Motors’ Profit Misses Estimates

Jet Airways (Q2, YoY)

• Revenue up 9.5 percent to Rs 6,161 crore.
• Ebitdar loss at Rs 346 crore versus Ebitdar profit at Rs 837 crore.
• Net loss at Rs 1,297 crore versus net profit at Rs 50 crore.
• Revenue includes one-off item of Rs 111 crore.

Also Read: Jet Airways' Liabilities Surge After Third Consecutive Loss

Aurobindo Pharma (Q2, YoY)

• Revenue up 7.1 percent at Rs 4751.4 crore.
• Net profit down 21.7 percent at Rs 611.4 crore.
• Ebitda down 8.2 percent at Rs 1026 crore.
• Margin at 21.6 percent versus 25.2 percent.
• Exceptional loss of Rs 26.8 crore in the current quarter.
• Forex loss of Rs 39.7 crore in current quarter.

Godrej Industries (Q2, YoY)

• Revenue up 14.8 percent at Rs 2624 crore.
• Net profit up 72.1 percent at Rs 135.6 crore.
• Ebitda down 14.3 percent at Rs 135.8 crore.
• Margin at 5.2 percent versus 6.9 percent.
• Cost of property development at Rs 327.6 crore versus Rs 222.1 crore.

Bank of India (Q2, YoY)

• Net interest income up 0.6 percent at Rs 2,926.8 crore.
• Net loss at Rs 1,156.3 crore versus net profit at Rs 179.1 crore.
• Provisions at Rs 2,827.6 crore versus Rs 2259.7 crore (QoQ)
• GNPA at 16.36 percent versus 16.66 percent (QoQ)
• NNPA at 7.64 percent versus 8.45 percent (QoQ)

UCO Bank (Q2. YoY)

• Net interest income up 47.1 percent at Rs 964.6 crore.
• Net loss at Rs 1,136.4 crore versus net loss at Rs 622.6 crore.
• Provisions at Rs 1,410.9 crore versus Rs 2,038.3 crore. (QoQ)
• GNPA at 25.37 percent versus 25.71 percent (QoQ)
• NNPA at 11.97 percent versus 12.74 percent (QoQ)

JK Paper (Q2, YoY)

• Revenue up 17.2 percent at Rs 785 crore.
• Net profit up 93.6 percent at Rs 109.6 crore.
• Ebitda up 48.2 percent at Rs 204.7 crore.
• Margin at 26.1 percent versus 20.6 percent.

Nalco (Q2, YoY)

• Revenue up 23.9 percent at Rs 3,040.9 crore.
• Net profit up 117.4 percent at Rs 510 crore.
• Ebitda up 153.7 percent at Rs 850.9 crore.
• Margin at 28 percent versus 13.7 percent.

Oil India (Q2, QoQ)

• Revenue up 10.4 percent at Rs 3,743.6 crore.
• Net profit up 22.6 percent at Rs 862 crore.
• Ebitda up 4.7 percent at Rs 1,474.7 crore.
• Margin at 39.4 percent versus 41.5 percent.
• Other income at Rs 287.8 crore versus Rs 126.8 crore.

Brigade Enterprises (Q2, YoY)

• Revenue up 70.4 percent at Rs 825.9 crore.
• Net profit up 67 percent at Rs 68.3 crore.
• Ebitda up 63 percent at Rs 218.8 crore.
• Margin at 26.5 percent versus 27.7 percent.

Apex Frozen Foods (Q2, YoY)

• Revenue down 10.4 percent at Rs 255.5 crore.
• Net profit down 10 percent at Rs 19.8 crore.
• Ebitda down 19.4 percent at Rs 24.9 crore.
• Margin at 9.7 percent versus 10.8 percent.

Jindal Saw (Q2, YoY)

• Revenue up 76.9 percent at Rs 2,337.2 crore.
• Net profit up 69.2 percent at Rs 101.7 crore.
• Ebitda up 35.6 percent at Rs 299 crore.
• Margin at 12.8 percent versus 16.7 percent.

Quick Heal Technologies (Q2, YoY)

• Revenue up 4.2 percent at Rs 108.9 crore.
• Net profit down 4 percent at Rs 37.7 crore.
• Ebitda flat at Rs 60.3 crore.
• Margin at 55.4 percent versus 57.6 percent.
• Exceptional Loss of Rs 5 crore this quarter.

Jain Irrigation Systems (Q2, YoY)

• Revenue up 20 percent at Rs 1,895 crore.
• Net profit up 99 percent at Rs 21.2 crore.
• Ebitda up 23 percent at Rs 215 crore.
• Margin at 11.4 percent versus 11.1 percent.
• Rise in profits from associate companies aided bottomline.

Hathway Cable (Q2, YoY)

• Revenue flat at Rs 130.6 crore.
• Net loss of Rs 5.9 crore versus net profit of Rs 14 crore.
• Ebitda flat at Rs 53.8 crore.
• Margins at 41.2 percent versus 41.1 percent.
• Higher foreign exchange loss and interest cost impacted bottomline.

• Mahanagar Gas
• Abbott India
• Allahabad Bank
• Apollo Tyres
• Ashok Leyland
• AstraZeneca Pharma
• Bombay Dyeing
• CG Power and Industrial Solutions
• Corporation Bank
• Dalmia Bharat Sugar and Industries
• Deepak Fertilizers and Petrochemicals
• Dilip Buildcon
• Engineers India
• Glenmark Pharmaceuticals
• Jindal Steel & Power
• Kesoram Industries
• NCC
• Nesco
• Novartis India

Tata Steel (Q2 Preview. YoY)

• Revenue seen 25.7 percent higher at 40,806 crore.
• Net profit seen at Rs 2483 crore versus Rs 976 crore.
• Ebitda seen 51.1 percent at Rs 7,133.8 crore.
• Margin seen at 17.5 percent versus 14.5 percent.

Sun Pharma (Q2 Preview. YoY)

• Revenue seen 14 percent higher at Rs 7,600 crore.
• Net profit seen 14 percent higher at Rs 1,045 crore.
• Ebitda seen 22 percent higher at Rs 1,672 crore.
• Margin seen at 22.0 percent versus 20.7 percent.

• Aurobindo Pharma entered into an agreement to purchase research and development assets from Australia based Advent Pharma, which deals in complex specialty generics. The total investment for this acquisition is pegged at $12.5 million.
• HCL Technologies announced partnership with NetBrain Technologies to offer network visibility and network automation capabilities for enterprise IT teams.
• NBCC received order for construction of Ayurveda Institute in Goa for Rs 260 crore. The company also reported that it had secured a total business of Rs 1,854 crores for the month of October.
• Piramal Enterprises said it was considering raising capital via issue of non-convertible debentures on Nov. 15.
• ATA Motors: Global wholesales for October up 6 percent at 1.09 lakh units on a year on year basis. Commercial Vehicles global wholesales rose by 19 percent to 44,380 units and passenger vehicles sales declined by 2 percent to 65,217 units.
• Lupin announced the launch of Atovane Oral Suspension USP launches in the U.S., after having received an approval from U.S. FDA earlier.
• Shree Cements to add capacity in two plants located in Jharkhand and Odisha. The combined capacity addition will be 5.5 MTPA with a total investment of Rs 903 crore.
• Cadila Healthcare clarified that on the news of “Kerala regulator finds three drugs of sub-standard quality” that Zipcet tablets were recalled by the company on June 29 and the batch was manufactured following current good manufacturing practices and released for sale only after batch meeting the pre-defined specifications, including dissolution.
• TVS Motor launched Apache RTR 160 4V in Bangladesh.
• Oil India’s board to consider buyback on Nov. 19. Company has gross cash and cash equivalents worth Rs 5,253 crore.

• RBI Governor meets Prime Minister to resolve ongoing issues.
• India’s Industrial Output rises 4.5 percent in September.
• CPI Inflation remains below target for the third consecutive month in October.
• Chhattisgarh Elections: Phase 1 voting ends, 70 percent turnout recorded.
• Rafale Deal: Centre submits document on decision process to petitioners.
• CBI Versus CBI: CVC submits preliminary report in sealed cover to Supreme Court.
• IL&FS’ board invites buyers for stake in two subsidiaries.
• Netflix to test lower-price plans as it seeks more Asia users.
• PepsiCo tests ancient India river route as Modi pushes waterways.

• West Texas Intermediate crude declined 1.5 percent to $59.01 a barrel.
• Brent crude resumed declines and traded 0.1 percent lower at 70.12 per barrel.
• Gold was little changed at $1,201.75 an ounce.

London Metal Exchange:

• Copper fell for the second day, down 0.1 percent.
• Aluminium traded lower for the second day, down 0.6 percent.
• ZInc resumed declines after a two-day rally, down 1.1 percent.
• Nickel traded lower for the third day, down 0.6 percent.
• Lead traded lower for the second day, down 1.5 percent.
• Tin traded 0.6 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.46 percent to 10,451 as of 8:25 a.m.

Asian stocks tumbled at the open on Tuesday, with Japanese benchmarks sliding more than 3 percent at one point, following a tech-led slump on Wall Street overnight thanks to a deteriorating outlook for iPhone sales.

Key indexes slid from Tokyo and Seoul to Sydney, and futures in Hong Kong pointed to a significant drop.

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