Sensex, Nifty Log Biggest Weekly Loss In Eight Months

Indian equity benchmarks logged the biggest weekly decline in eight months, dragged by losses in banking, energy and information technology stocks.

The S&P BSE Sensex index shed over 1% to 59,306.93. The NSE Nifty 50 Index declined by similar magnitude to 17,671.65. Both the benchmark indexes fell by over 2.2% for the week, logging the worst decline since the week ended February 26.

On Friday's session, the broader indexes outperformed their larger peers with the S&P BSE MidCap index adding 0.16% and the S&P BSE SmallCap index shedding 0.4%. Twelve of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Energy falling nearly 2%.

The market breadth was skewed in favour of bears. About 1,452 stocks advanced, 1,796 declined and 151 remained unchanged.

• Bombay High Court division bench to take up Invesco and OFI’s appeal against single judge order on Nov 29

• The appeal by Invesco and OFI came up for hearing before the high court today

• The single judge bench order of Justice Gautam Patel had asked Invesco not to act in furtherance of its EGM requisition to Zee Entertainment Enterprises.

Vodafone Idea Ltd. has approved the exercise of the option of deferment of the company's AGR related dues by a period of four years with immediate effect.

In an exchange filing, the company said that the other option offered in the Department of Telecommunications notification will be considered within the stipulated timeframe.

Escorts reported net income for the second quarter that beat the average analyst estimate

September Quarter Results (Consolidated, QoQ)

• Net income at Rs 173.47 crore vs Rs 178.45 crore(Bloomberg Consensus Estimate: Rs 162 crore)

• Revenue at Rs 1,673.85 crore vs Rs 1,701.70 crore (Estimate: Rs 1,540 crore)

• Total costs at Rs 1,501.18 crore vs Rs 1,500.82 crore

• Other income at Rs 65.51 crore vs Rs 48.82 crore

Of the 25 analysts tracking the company, 16 maintained 'buy', five maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 10.2%

Shares of Dr. Reddy's Laboratories Ltd. rose 7.61% in intraday trade to Rs 4,917.85 apiece after the company reported net income for the second quarter that beat the average analyst estimate.

September Quarter Numbers (Consolidated, QoQ)

• Net income at Rs 992 crore vs Rs 570.8 crore (Bloomberg Consensus Estimate: Rs 686 crore)

• Revenue at Rs 5,763.2 crore vs Rs 4,919.4 crore (Estimate: Rs 5,202 crore)

• Total costs at Rs 1,867.1 crore vs Rs 1,909.2 crore

Of the 43 analysts tracking the company, 35 maintained 'buy', six maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 11.9%.

Shares of GAIL India Ltd. rose 6% in intraday trade to Rs 156.25 apiece after the company’s quarterly profit rose as the growth in total income surpassed the growth in total expenditure.

September Quarter Numbers (Standalone, QoQ)

Revenues up 23.7% at Rs 21510.98 crore vs Rs 17383.9 crore (Est Rs 19428.7 crore)

Net profit up 87.1% at Rs 2862.95 crore vs Rs 1529.92 crore (Est Rs 2072.9 crore)

EBITDA up 44.1% at Rs 3475.08 crore vs Rs 2411.28 crore (Est Rs 2996.9 crore)

EBITDA margins at 16.2% vs 13.9% (Est 15.4%)

Highlights (QoQ)

• Other income jump 3.9 times to Rs 773.99 crore.

• Operating margin expanded to 16.2% from 13.9% in the April-June period.

Shares of InterGlobe Aviation Ltd. rose over 9% to Rs 2,182 apiece after the company's revenues doubled and losses narrowed in the second quarter.

Prabhudas Lilladher

• Maintains 'hold' and raises target price to Rs 1,950 from Rs 1,850 earlier, an implied return of -2.4%.

• Believe IndiGo continues to remain better placed than its peers and is likely to emerge stronger post covid given superior balance sheet, industry leading cost structure and strong management team

Of the 24 analysts tracking the company, 11 maintained 'buy', four maintained 'hold' and nine maintained 'sell' recommendations.

Sumitomo Chemical India Ltd. has given in-principle approval to wind up its subsidiary Excel Crop Care (Europe) N.V.

Excel Crop Care is an unlisted company and has not been having sales turnover for years and hence the closure of the company is unlikely to impact its business, Sumitomo said in an exchange filing.

• CCL Products raised to buy at Edelweiss Capital; Price target: Rs 507

• Lupin cut to accumulate at Nirmal Bang; Price target: Rs 945

Source: Bloomberg

Shares of Bharat Electronics Ltd. rose 7.54% in intraday trade to Rs 215.4 apiece after the company reported net income for the September quarter above the average analyst estimate.

September Quarter Numbers (Consolidated, QoQ)

• Net income at Rs 612.60 crore vs Rs 11.15 crore (Bloomberg Consensus Estimate: Rs 484 crore)

• Revenue at Rs 3,660.56 crore vs Rs 1,634.59 crore (Estimate: Rs 3,590 crore)

• Total costs at Rs 2,898.70 crore vs Rs 1,664.08 crore

• Other income at Rs 65.88 crore vs Rs 44.66 crore

Of the 30 analysts tracking the company, 27 maintained 'buy' and three maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 11.2%. Trading volume on the stock was 3.5 times the 30-day average volume for this time of the day.

Voltas reported net income for the second quarter that missed the average analyst estimate.

September Quarter Results (Consolidated, QoQ)

• Net income at Rs 104.29 crore vs Rs 122.44 crore (Bloomberg Consensus Estimate: Rs 108 crore)

• Revenue at Rs 1,689.08 crore vs Rs 1,785.20 crore (Estimate: Rs 1,732 crore)

• Total costs at Rs 1,575.7 crore vs Rs 1,661.53 crore

Of the 41 analysts tracking the company, 26 maintained 'buy', 10 maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 6.5%

India's stock benchmarks declined, dragged by losses in energy, banking and power stocks in a volatile session so far. S&P BSE Sensex and NSE Nifty 50 indexes are set to extend weekly losses for the second week in a row.

The S&P BSE Sensex fell 0.50% to 59,684.09. The NSE Nifty 50 index declined by similar magnitude to 17,785.50. Reliance Industries Ltd. contributed the most to the index decline, decreasing 2%. Kotak Mahindra Bank Ltd. had the largest drop, falling 2.4%. In midday trading, 21 of 50 shares fell, while 29 rose.

The broader indexes outperformed their larger peers with the S&P BSE MidCap index adding over 0.5% and the S&P BSE SmallCap index little changed. Ten of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Energy inded shedding nearly 2%.

The market breadth was skewed in favour of bears. About 1,412 stocks advanced, 1,702 declined and 161 remained unchanged.

September Quarter Numbers (Consolidated, QoQ)

• Revenue down 6% at Rs 3,784.8 crore Vs 4,025.4 crore (BBG estimate: Rs 3,702.1 crore)

• Net profit down 10% to Rs 506.2 crore Vs Rs 564.8 crore (BBG estimate: Rs 479.3 crore)

• EBITDA at Rs 860.8 crore Vs Rs 933 crore, down 8% (BBG estimate: Rs 786.3 crore)

• Margins at 21.4% Vs 23.2% (BBG estimate: 21.2%)

Shares of Lupin Ltd. gained the most in nearly six months as analysts cheer its U.S. revenue ramp-up guidance though ongoing FDA issues weigh on new approvals.

The drugmaker’s revenue in the American market grew 7.2% sequentially to Rs 1,429.1 crore in the quarter ended September. The U.S. comprises 36% of Lupin's total revenue.

• The Singapore tribunal had declined to vacate the emergency arbitrator’s October 2020 order of status quo on the transaction between Future Retail -Reliance Retail

• The high court has asked for replies to be filed within four weeks

• The Delhi High Court will next take up Future’s plea in January, 2022

• The high court declined Future’s plea seeking a continuation of SC order of stay on proceedings initiated by Amazon

• The Supreme Court order passed with consent of both parties had also asked regulatory authorities not to pass any final orders on the transaction between Future and Reliance

Varun Beverages Ltd. reported net income for the third quarter that beat the average analyst estimate.

September Quarter Numbers (Consolidated, QoQ)

• Net profit at Rs 257.9 crore vs Rs 318.80 crore

• Revenue at Rs 2,440.43 crore vs Rs 2,483.04 crore

• Total costs at Rs 2,126.96 crore vs Rs 2,087.80 crore

• Other income at Rs 36.93 crore vs Rs 24.41 crore

Of the 19 analysts tracking the company, 17 maintained 'buy' and two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 19.9%.

Indian bonds are largely steady amid negative global cues as markets view Shaktikanta Das’ reappointment as the RBI chief as positive given his dovish view on policy. The rupee edges higher.

• 10-year yields rose 1bp to 6.38%; 5-year yield steady at 5.74%

• USD/INR falls 0.2% to 74.7797

• Markets will also await a Rs 24,000 crore ($3.2b) debt sale to gauge demand amid rising global yields

• Trends suggest marginal misses on both topline and bottomline growth.

• Earnings beat ratio at the lowest in 14 quarters.

• Revenue and net profit growth missed analyst expectations by 2 percentage points and 1 percentage point, respectively.

• Revenue growth misses were led by energy, at the sectoral level.

• Earnings growth beats were most visible for materials and misses most notable in consumer discretionary and energy sectors.

Source: Morgan Stanley India Equity Strategy Update

• Maturities across the India sovereign yield curve were little changed in Friday morning trading.

• The 5-year yield was little changed at 5.732%

• The 10-year yield was little changed at 6.371%

• The 18-year yield remained unchanged at 6.849%

• The 5-year-10-year yield spread was 63.9bps, vs previous close 63.2bps

Source: Bloomberg

Tata Power Co Ltd. and Tata Steel Ltd. will collaborate to set up 41 Mega Watt grid connected solar projects in Jharkhand and Odisha.

The two firms have signed a Power Purchase Agreement (PPA) for a period of 25 years to set up the project.

The solar project will be a combination of rooftop, floating and ground mounted solar panels.

Tata Power will develop Photo Voltaic capacities for Tata Steel at Jamshedpur and Kalinganagar.

The project is expected to save 45,210 tonnes of carbon dioxide per year and 10,57,021 tonnes during its lifetime of 25 years.

Shares of RBL Bank Ltd. fell 14.4% in intraday trade, to Rs 172.1 apiece after the company reported a YoY decline in net profit in the September quarter.

For the second quarter, the bank reported a net profit of Rs 31 crore, down by 79% year-on-year on higher provisions. Gross non-performing asset ratio worsened to 5.4% as of Sep 30, compared with 4.99% as of June 30. The bank has restructured loans worth Rs 1,352 crore under the Reserve Bank's two Covid restructuring windows, it said. Of this, loans worth over Rs 136 crore had turned NPA at the end of the second quarter.

Analysts say that RBL Bank is likely to see asset quality pain continuing for the near term, even as growth is expected to come back next year.

Of the 30 analysts tracking the company, 17 maintained 'buy', nine maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 27.3%

NTPC Ltd. has declared successful commercial operation of the first part capacity of 17.5 Mega Watt of 100 Mega Watt Ramagundam Floating Solar PV project in Telangana from October 28. This follows the successful commissioning of the project.

Unit 2 of 250 Mega Watt of Barauni Thermal Power station Stage-II is declared on commercial operation from November 1.

The overall commercial capacity of NTPC and NTPC group will be 53,492.5 Mega Watt and 66,917.5 Mega Watt respectively

Source: Exchange Filing

• Shares of NMDC Ltd. rose 7% in intraday trade, the most in nearly six months, to Rs 144 apiece.

• Trading volume on the stock was five times the 30-day average volume, for this time of the day.

• NMDC was removed from the F&O ban list today.

• Astec Lifesciences raised to 'buy' at Asian Markets; Price target: Rs 1,625

• Gujarat Gas raised to 'hold' at ICICI Securities; Price target: Rs 569

• SBI Cards cut to 'add' at Equirus Securities; Price target: Rs 1,280

Source: Bloomberg

Shares of Subex Ltd. fell over 19% in intraday trade to Rs 41.15 apiece after the company's net income declined sequentially in the September quarter.

Second Quarter results (Consolidated, QoQ)

• Net profit at Rs 4.82 crore vs Rs 13.48 crore

• Revenue at Rs 86.30 crore vs Rs 80 crore

• Total expenses at Rs 79.19 crore vs Rs 67.23 crore

• Other income at Rs 0.97 crore vs Rs 6.71 crore

Trading volume on the stock was 12 times the 30-day average volume for this time of the day.

Shares of Subex crossed below the 200-day simple moving average, indicating potential downward price momentum.

Indian equity benchmarks opened lower, dragged by losses in state-run companies and banking stocks.

The S&P BSE Sensex shed 1% to 59,377.10. The NSE Nifty 50 declined by a similar magnitude to 17,651.35. Housing Development Finance Corp. contributed the most to the index decline, decreasing 2.3%. Bajaj FinservLtd. had the largest drop, falling 4.2%. In early trading, 34 of 50 shares fell, while 6 rose

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap declining over 1%. Barring S&P BSE Metal inded, all the other 18 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Power and Utilities indexes falling over 3%.

The market breadth was skewed in favour of bears. About 586 stocks advanced, 1,616 declined and 89 remained unchanged.

• Torrent Power cut to 'sell' at JM Financial; Price target: Rs 390

• SBI Cards cut to 'reduce' at Axis Capital Ltd.; Price target: Rs 1,055

Source: Bloomberg

• Lupin raised to 'neutral' at Credit Suisse; Price target: Rs 925

• Maruti Suzuki raised to 'outperform' at Macquarie; Price target: Rs 8,526

• Marico raised to 'buy' at IDBI Capital Market; Price target: Rs 673

• M&M Financial raised to 'buy' at Centrum Broking; Price target: Rs 230

Source: Bloomberg

• India’s state-run companies may move after the government asked e-ticketing platform IRCTC to share half of its revenue earned from convenience fees with Indian Railways from Nov. 1.

• Government owns a 67.4% stake in IRCTC: BSE data

Stocks To Watch: IRCTC, State Bank of India, Bank of Baroda, ONGC

Divestment Candidates: BPCL, Container Corp., Shipping Corp., Dredging Corp., Steel Authority of India, Hindustan Copper and IDBI Bank

• Shares of Indian technology firms may move after global peer Cognizant Technology reported third-quarter results that beat estimates, with analysts expecting the company’s outlook to improve next year.

• Stocks To Watch: Infosys, Tata Consultancy Services, Tech Mahindra, HCL Technologies, Wipro