Sensex Logs Second-Best Samvat In Four Years

Indian equity benchmark—S&P BSE Sensex—clocked its best Samvat in four years.

The 31-stock returned 12 percent in Samvat 2075. Meanwhile, the NSE Nifty 50 advanced 10 percent during the period.

Today, Sensex and Nifty closed little changed at 39,058 and 11,583 respectively. The broader markets represented by the NSE Nifty 500 Index ended 0.1 percent lower.

The market breadth was tilted in favour of sellers. About 1,012 stocks declined and 736 shares advanced on National Stock exchange.

Seven out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU Bank Index’s 3.4 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.54 percent.

Arvind (Q2, YoY)

• Stock rose as much as 4.5 percent to Rs 47.50.
• Revenue up 9.4 percent to Rs 1,962.2 crore.
• Net profit down 19.7 percent to Rs 48.1 crore.
• Ebitda up 7 percent to Rs 195 crore.
• Margin at 9.9 percent versus 10.2 percent.

Atul (Q2, YoY)

• Stock fell as much as 1.9 percent to Rs 4,221.
• Revenue up 1 percent to Rs 1,045.6 crore.
• Net profit up 71 percent to Rs 209 crore.
• Ebitda up 12.7 percent to Rs 224.4 crore.
• Margin at 21.5 percent versus 19.2 percent.

Indian equity benchmark—S&P BSE Sensex—is set for its second-best Samvat in four years.

The 30-stock index returned 12 percent so far in Samvat 2075 and is set to end higher today. The NSE Nifty 50 rose 0.1 percent to 11,592 as of 3. p.m.

Sun Pharma

• Stock rose 3.8 percent intraday to Rs 421.40 each.
• The trading volume was nearly three times its 20-day average for this time of the day.

Alembic Pharmaceuticals

• Stock declined 2 percent intraday to Rs 532.55 each.
• The trading volume was nearly 30 times its 20-day average.

Bharti Infratel

• Stock falls 10.4 percent, the most in six months, to Rs 212.95 each.
• The trading volume was more than eight times the 20-day average.

Deepak Nitrate

• Stock jumped 5.7 percent to hit an all-time high of Rs 360 apiece.
• The trading volume was seven times the 20-day average.

Shares of State Bank of India rose as much as 5.5 percent, the most in over a month, to Rs 277 after the company announced its September quarter results.

Key Earnings Highlights (Q2, YoY)

• Net interest income up 17 percent to Rs 24,600 crore.
• Net profit up 218 percent to Rs 3,012 crore.
• GNPA at 7.19 percent versus 7.53 percent (QoQ).
• NNPA at 2.79 percent versus 3.07 percent (QoQ).

Indian equity benchmarks were trading at day’s low.

The S&P BSE Sensex fell 0.75 percent to 38,733 as of 1:20 a.m. and the NSE Nifty 50 fell 0.76 percent to 11,494. The broader markets represented by the NSE Nifty 500 Index fell 0.74 percent.

Shares of Strides Pharma rose as much as 9.8 percent to Rs 378 after the company announced its quarterly results.

Key Earnings Highlights (Q2, YoY)

• Revenue up 37.6 percent to Rs 715.1 crore.
• Net profit at Rs 133.1 crore versus net loss of Rs 5.3 crore.
• Ebitda up three times to Rs 146.6 crore.
• Margin at 20.5 percent versus 9.3 percent.
• Exceptional gain of Rs 83.4 crore in the current quarter.

Spot gold is set for best Sanvat in nine years, according to data compiled by BlombergQuint.

The precious yellow metal returned 22.68 percent in Samvat 2075, the since Samvat 2066 when it returned 32.18 percent.

Shares of Piramal Enterprises fellas much as 17 percent, the most since January 2008, to Rs 1,430.

The company’s board approved a plan to raise funds via a rights issue and preferential allotment of compulsory convertible debentures, according to its stock exchange filing. “The company plans to raise Rs 3650 crore at Rs 1,300 per share,” it added.

Shares of State Bank of India resumed gains after a blip yesterday ahead of quarterly results announcement.

Shares of New India Assurance halted their three-day fall and rose as much as 9.9 percent to Rs 141.60.

Of the shares traded, 46 percent were at the ask price and 34 percent were at the bid, according to Bloomberg data. The stock declined 32 percent in the past 12 months compared to a 16 percent advance in the Sensex.

• Bharti Infratel: About 30 lakh shares changed hands in a large trade.
• TV18 Broadcast: About 21.3 lakh shares changed hands in a large trade.

Buyers and sellers were not known immediately.
Source: Bloomberg

Nifty’s 11,600 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Oct. 31, fell 25.2 percent to Rs 74.75. Over 12.87 lakh shares were added to the open interest which stood at over 33.68 lakh shares.

• Bharti Airtel: About 25 lakh shares changed hands in a large trade.
• ICICI Bank: About 15.3 lakh shares changed hands in a large trade.
• Yes Bank: About 14.6 lakh shares changed hands in a large trade.

Buyers and sellers were not known immediately.
Source: Bloomberg

Indian equity indices continued to fluctuate as gains in Infosys Ltd. were offset by losses in HDFC Ltd. and Reliance Industries Ltd.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,059 and 11,586 respectively as of 10 a.m. The broader markets represented by the NSE Nifty 500 Index also traded flat.

InterGlobe Aviation (Q2, YoY)

• Stock fell as much as 5.4 percent to Rs 1,575.
• Revenue up 31 percent to Rs 8,105 crore
• Ebitdar profit of Rs 97 crore versus Ebitdar loss of Rs 116 crore
• Net loss of Rs 1,062 crore versus Rs 652 crore
• Cuts capacity growth guidance for FY20 to 25 percent from 30 percent.

Raymond (Q2, YoY)

• Stock rose as much as 2.9 percent to Rs 618.90.
• Revenue up 1.9 percent to Rs 1,883.2 crore
• Net profit up 33.5 percent at Rs 84 crore
• Ebitda up 11 percent to Rs 207.1 crore
• Margin at 11 percent versus 10.1 percent
• Branded textiles revenue down 2 percent to Rs 869 crore
• Branded apparels revenue up 9 percent to Rs 529 crore

Sterlite Tech (Q2, YoY)

• Stock fell as much as 18.4 percent to Rs 118.65.
• Revenue up 25.4 percent to Rs 1,359.7 crore (Estimate: Rs 1,453 crore)
• Net profit up 21.6 percent to Rs 159.6 crore (Estimate: Rs 143 crore)
• Ebitda up 5.6 percent to Rs 288.5 crore (Estimate: Rs 305 crore)
• Margin at 21.2 percent versus 25.2 percent (Estimate: 21 percent)
• Management gives cautious outlook
• Expects H2 profitability to be lower than H1

Colgate Palmolive (Q2, YoY)

• Stock fell as much as 1.5 percent to Rs 1,540.
• Revenue up 4.6 percent to Rs 1,221.8 crore (Estimate: Rs 1,221 crore)
• Net profit up 24.3 percent to Rs 244.1 crore (Estimate: Rs 235 crore)
• Ebitda down 2 percent at Rs 322.9 crore (Estimate: Rs 347 crore)
• Margin at 26.4 percent versus 28.2 percent (Estimate: 28.4 percent)
• Advertising expenses up 27 percent to Rs 175.8 crore
• Volume growth at 4 percent (Estimate: 4 percent)
• Declared dividend of Rs 12 per share

Westlife Development (Q2, YoY)

• Stock rose as much as 8.4 percent to Rs 377.
• Revenue up 13.2 percent to Rs 396.5 crore
• Net profit up 14.6 percent at Rs 4.7 crore
• Ebitda up 2.2 times at Rs 58 crore
• Margin at 14.6 percent versus 7.7 percent
• Depreciation up 75 percent to Rs 34.4 crore
• Finance cost up 4.9 times to Rs 20 crore
• Opens 5 new restaurants this quarter
• Gross margins at 65.3 percent
• Same store sales growth at 7 percent

Astral Poly Technik (Q2, YoY)

• Stock rose as much as 4.4 percent to Rs 1,185.
• Revenue up 8.5 percent to Rs 678.3 crore
• Net profit up 84.5 percent at Rs 82.1 crore
• Ebitda up 26.2 percent at Rs 119 crore
• Margin at 17.5 percent versus 15.1 percent
• Tax expense down 82 percent at Rs 3.4 crore
• Plastic segment revenue up 15 percent at Rs 528.4 crore
• Adhesive segment revenue down 9 percent at Rs 149.9 crore

United Spirits (Q2, YoY)

• Stock rose as much as 1.7 percent to Rs 619.
• Revenue up 3.4 percent to Rs 2,314.2 crore
• Net profit down 27.8 percent at Rs 163.1 crore
• Ebitda down 4.9 percent at Rs 408.1 crore
• Margin at 17.6 percent versus 19.2 percent
• Raw material costs as percentage of sales at 55 percent versus 49.6 percent

IDFC First Bank (Q2, YoY)

• Stock rose as much as 6.6 percent to Rs 41.40.
• Net interest income up 3 times to Rs 1,363.1 crore
• Net loss at Rs 679.5 crore versus net loss at Rs 369.7 crore
• Provisions at Rs 317.4 crore versus Rs 601.4 crore (Rs 1,280.8 crore QoQ)
• GNPA at 2.62 percent versus 2.66 percent (QoQ)
• NNPA at 1.17 percent versus 1.35 percent (QoQ)
• Figure not comparable due to merger of IDFC with Capital First

Shriram Transport Finance (Q2, YoY)

• Stock rose as much as 1.6 percent to Rs 1,087.80.
• Net interest income down 3.2 percent to Rs 1,996.6 crore
• Net profit up 25.5 percent to Rs 765.1 crore
• Declared dividend of Rs 5 per share
• Gain on income tax of Rs 179.8 crore on account of reduction in the corporate tax rate
• Assets under management up 3.58 percent to Rs 1.08 lakh crore
• Net interest margin at 7.19 percent versus 7.52 percent (7.16 percent QoQ)

Shares of the construction company fluctuated between gains and losses to trade little changed at Rs 1,438.

The company has issued Letters of Award for works contract aggregating to Rs 319.5 crore to Larsen & Toubro for construction of Hotel and Commercial Building in Powai, Mumbai.

Besides, shares of Chalet Hotels fluctuated between gains ad losses to trade little changed at Rs 340.95.

Shares of Bandhan Bank rose as much as 3.4 percent to Rs 589.90.

The board approved increasing shareholding limits for the foreign portfolio investors to 49 percent from 24 percent. This would provide further dilution of the shareholding of the promoter Bandhan Bank Financial Holdings to 40 percent from 60.96 percent to comply with RBI guidelines for new banks in the private sector.

Besides, the board will seek approval from shareholders to reduce authorised share capital to Rs 3,200 crore from Rs 5,200 crore.

The stock returned 5.5 percent so far this year and advanced 52.7 percent in the past 12 months.

Shares of ITC rose as much as 3.3 percent to Rs 257.20. The stock was the second-best performer on Sensex and Nifty after the company reported highest ever quarterly profit.

Key Earnings Highlights (Q2, YoY)

• Revenue up 5.3 percent to Rs 11,871.5 crore (Estimate: Rs 11,910 crore)
• Net profit up 36.2 percent to Rs 4,023.1 crore (Estimate: Rs 3,642 crore)
• Ebitda up 8.5 percent to Rs 4,562.4 crore (Estimate: Rs 4,602.4 crore)
• Margin at 38.4 percent versus 37.3 percent (Estimate: 38.6 percent)
• Tax expense down 45 percent to Rs 784.6 crore
• Other income up 30 percent to Rs 654.3 crore

Here’s what brokerages had to say after ITC announced September quarter results:

Credit Suisse

• Maintain Outperform; Hike price target to Rs 330 from Rs 320
• Q2: Steady quarter, broad-based EBIT growth
• ITC staying away from large price hikes to give more room for cigarette volumes to recover
• FMCG growth impacted by slowdown, but strong margin expansion continues to play out

UBS

• Maintain Buy with a price target of Rs 350
• Cigarettes steady; rural slowdown hurts FMCG
• ITC cigarettes: volume and margins improve
• Margin outlook, ESG concerns have kept stock range bound

Shares of PNB Housing Finance rose as much as 14.1 percent to Rs 510 after the company announced its September quarter results.

Key Earnings Highlights (Q2, YoY)

• Net interest income up 29.1 percent to Rs 494.6 crore
• Net profit up 45 percent at Rs 366.8 crore
• NIM at 3.19 percent versus 2.72 percent (3.14 percent QoQ)
• GNPA at 0.84 percent versus 0.85 percent (QoQ)

Indian equity benchmarks fluctuated between gains and losses in the opening trade.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,059 and 11,586 respectively. The broader markets represented by the NSE Nifty 500 Index also traded flat.

The market breadth was tilted in favour of buyers. About 744 stocks advanced and 557 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty FMCG Index’s 0.7 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.35 percent.

Futures

• Nifty October futures closed at 11611, premium of 28.5 points versus 20.6 points
• Nifty Oct futures down 1.4 percent, sheds 1.9 lakh shares in OI
• Nifty Bank Oct futures closed at 29,180.5, premium of 72.6 points versus 34.9 points
• Nifty Bank Oct futures OI up 11 percent, adds 1.2 lakh shares in OI

Options

• Nifty PCR at 1.25 versus 1.18 (across all series)

Nifty Monthly Expiry: Oct 31

• Max OI on call side at 12,000 (30.9 lakh shares)
• Max OI on put side at 11,000 (28.2 lakh shares)
• OI addition seen at 10,700P (+7 lakh shares), 11,600C (4.9 lakh shares)

• Zee Entertainment Enterprises promoter Essel International sold 2.68 lakh shares on Oct. 22.

• India Motor Parts & Accessories ex-date for share bonus at 1:2
• VIP Clothing to move into ASM Framework
• Camlin Fine Sciences, Man Infra to move into short term ASM Framework
• GATI, Themis Medicare, Winsome Yarns, Jaiprakash Power Ventures to move out of short term ASM Framework
• Newgen Software Technologies, Zee Learn, Sharda Motor Industries price band revised to 10 percent
• Venus Remedies, GVK Power & Infrastructure price band revised to 5 percent

The Indian rupee opened little changed against the U.S. dollar. The home currency started trading at 71.03 compared to yesterday’s close of 71.02 against the greenback.

Indian equity indices are set for a positive start.

The S&P BSE Sensex rose 0.42 percent to 39,139 during the pre-market trade and the NSE Nifty 50 rose 0.88 percent to 11,688.20.

• Varun Beverages: Marina III (Singapore) sold 15.56 lakh shares (0.54 percent) at Rs 630.02 each

Apollo Tricoat Tubes

• Promoter Saket Agrawal sold 3 lakh shares (0.99 percent) at Rs 280.34 each
• Fidelity Group acquired 10.17 lakh shares (3.35 percent) at Rs 280 each

Nifty Earnings To Watch

• State Bank of India
• Tata Motors

Other Earnings To Watch

• Arvind
• Astec LifeSciences
• Hikal
• Infibeam Avenues
• Jubilant Life Sciences
• NRB Bearing
• Reliance Capital
• S H Kelkar
• Strides Pharma Science
• HDFC Asset Management Company
• Marico
• Aavas Financiers
• Atul
• Carborundum Universal
• Tata Coffee
• Timken India
• V2 Retail
• Zuari Agro Chemicals
• HeidelbergCement
• Honeywell Automation
• Huhtamaki PPL
• Kirloskar Industries
• Mahindra EPC Irrigation
• Ratnamani Metals & Tubes
• Shriram City Union Finance
• Supreme Industries

Earnings Reaction To Watch

ITC (Q2, YoY)

• Revenue up 5.3 percent to Rs 11,871.5 crore (Estimate: Rs 11,910 crore)
• Net profit up 36.2 percent to Rs 4,023.1 crore (Estimate: Rs 3,642 crore)
• Ebitda up 8.5 percent to Rs 4,562.4 crore (Estimate: Rs 4,602.4 crore)
• Margin at 38.4 percent versus 37.3 percent (Estimate: 38.6 percent)
• Tax expense down 45 percent to Rs 784.6 crore
• Other income up 30 percent to Rs 654.3 crore

InterGlobe Aviation (Q2, YoY)

• Revenue up 31 percent to Rs 8,105 crore
• Ebitdar profit of Rs 97 crore versus Ebitdar loss of Rs 116 crore
• Net loss of Rs 1,062 crore versus Rs 652 crore
• Cuts capacity growth guidance for FY20 to 25 percent from 30 percent.

Raymond (Q2, YoY)

• Revenue up 1.9 percent to Rs 1,883.2 crore
• Net profit up 33.5 percent at Rs 84 crore
• Ebitda up 11 percent to Rs 207.1 crore
• Margin at 11 percent versus 10.1 percent
• Branded textiles revenue down 2 percent to Rs 869 crore
• Branded apparels revenue up 9 percent to Rs 529 crore

Sterlite Tech (Q2, YoY)

• Revenue up 25.4 percent to Rs 1,359.7 crore (Estimate: Rs 1,453 crore)
• Net profit up 21.6 percent to Rs 159.6 crore (Estimate: Rs 143 crore)
• Ebitda up 5.6 percent to Rs 288.5 crore (Estimate: Rs 305 crore)
• Margin at 21.2 percent versus 25.2 percent (Estimate: 21 percent)
• Management gives cautious outlook
• Expects H2 profitability to be lower than H1

Colgate Palmolive (Q2, YoY)

• Revenue up 4.6 percent to Rs 1,221.8 crore (Estimate: Rs 1,221 crore)
• Net profit up 24.3 percent to Rs 244.1 crore (Estimate: Rs 235 crore)
• Ebitda down 2 percent at Rs 322.9 crore (Estimate: Rs 347 crore)
• Margin at 26.4 percent versus 28.2 percent (Estimate: 28.4 percent)
• Advertising expenses up 27 percent to Rs 175.8 crore
• Volume growth at 4 percent (Estimate: 4 percent)
• Declared dividend of Rs 12 per share

Westlife Development (Q2, YoY)

• Revenue up 13.2 percent to Rs 396.5 crore
• Net profit up 14.6 percent at Rs 4.7 crore
• Ebitda up 2.2 times at Rs 58 crore
• Margin at 14.6 percent versus 7.7 percent
• Depreciation up 75 percent to Rs 34.4 crore
• Finance cost up 4.9 times to Rs 20 crore
• Opens 5 new restaurants this quarter
• Gross margins at 65.3 percent
• Same store sales growth at 7 percent

PNB Housing Finance (Q2, YoY)

• Net interest income up 29.1 percent to Rs 494.6 crore
• Net profit up 45 percent at Rs 366.8 crore
• NIM at 3.19 percent versus 2.72 percent (3.14 percent QoQ)
• GNPA at 0.84 percent versus 0.85 percent (QoQ)

Astral Poly Technik (Q2, YoY)

• Revenue up 8.5 percent to Rs 678.3 crore
• Net profit up 84.5 percent at Rs 82.1 crore
• Ebitda up 26.2 percent at Rs 119 crore
• Margin at 17.5 percent versus 15.1 percent
• Tax expense down 82 percent at Rs 3.4 crore
• Plastic segment revenue up 15 percent at Rs 528.4 crore
• Adhesive segment revenue down 9 percent at Rs 149.9 crore

United Spirits (Q2, YoY)

• Revenue up 3.4 percent to Rs 2,314.2 crore
• Net profit down 27.8 percent at Rs 163.1 crore
• Ebitda down 4.9 percent at Rs 408.1 crore
• Margin at 17.6 percent versus 19.2 percent
• Raw material costs as percentage of sales at 55 percent versus 49.6 percent

IDFC First Bank (Q2, YoY)

• Net interest income up 3 times to Rs 1,363.1 crore
• Net loss at Rs 679.5 crore versus net loss at Rs 369.7 crore
• Provisions at Rs 317.4 crore versus Rs 601.4 crore (Rs 1,280.8 crore QoQ)
• GNPA at 2.62 percent versus 2.66 percent (QoQ)
• NNPA at 1.17 percent versus 1.35 percent (QoQ)
• Figure not comparable due to merger of IDFC with Capital First

Shriram Transport Finance (Q2, YoY)

• Net interest income down 3.2 percent to Rs 1,996.6 crore
• Net profit up 25.5 percent to Rs 765.1 crore
• Declared dividend of Rs 5 per share
• Gain on income tax of Rs 179.8 crore on account of reduction in the corporate tax rate
• Assets under management up 3.58 percent to Rs 1.08 lakh crore
• Net interest margin at 7.19 percent versus 7.52 percent (7.16 percent QoQ)

• Hexaware Technologies, Tata Elxsi, and Union Bank of India to be removed from F&O segment with effect from Dec. 27.
• InterGlobe Aviation: IndiGo lowered its capacity growth guidance for 2019-20 to 25 percent from 30 percent. For Q3 it expects capacity to grow by 22 percent. Capacity during Q2 increased by only 24 percent as against company guidance of 28 percent.
• Chalet Hotels has issued Letters of Award for works contract aggregating to Rs 319.5 crore to Larsen & Toubro for construction of Hotel and Commercial Building in Powai, Mumbai.
• Security and Intelligence Services: Board approved share split of one equity shares into two shares.
• Bandhan Bank: Board approved increasing shareholding limits for the foreign portfolio investors to 49 percent from 24 percent. This would provide further dilution of the shareholding of the promoter Bandhan Bank Financial Holdings to 40 percent from 60.96 percent to comply with RBI guidelines for new banks in the private sector. Board to seek approval from shareholders to reduce authorised share capital to Rs 3,200 crore from Rs 5,200 crore.
• Tata Steel clarified that its arm has participated in the e-auction for tendering by Odisha Government for the Misrilall Chrome Mine and is awaiting the outcome of the auction in the form of formal communication from the Odisha Government.
• Vodafone Idea said in a statement that it is extremely disappointed by the Supreme Court judgment on the Adjusted Gross Revenue case. The matter has already been through several rounds of litigation, which have been largely in favour of the operators until now. The company will study the ruling and determine the next steps, including a review application.
• Cochin Shipyard: Nippon Mutual Fund increased the stake to 7.4 percent on Oct. 22. from 6.4 percent.
• Zuari Global: Board approved issuance of NCDs up to Rs 150 crore.
• Patel Engineering promoters increased their stake to 59.84 percent from 8.24 percent via rights share issue on Oct. 18.

• Technology shares led gains in U.S. stocks as investors assessed a raft of corporate earnings against the backdrop of a global economic slowdown.
• Pound held losses as U.K. Prime Minister Boris Johnson’s bid for a snap election on Dec. 12 was up in the air after his opponents said they want to rule out a no-deal Brexit first.
• The European Central Bank kept monetary stimulus unchanged in the final meeting of Mario Draghi’s presidency.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.29 percent to 11,582 as of 8:30 a.m.

Stocks in Asia were mixed as weakness from Amazon.com Inc. earnings kept a lid on positive sentiment, even as equities remained on course for a third week of gains.

Shares dipped in Shanghai and Hong Kong, while equity gauges were flat in Seoul and Tokyo. Earlier, the S&P 500 Index traded above the 3,000 level, approaching its all-time high as technology shares led gains.

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