Sensex, Nifty Log Biggest Single-Day Losses In Six Months

Indian equity benchmarks declined the most in over six months, dragged by losses in banking, metals and information technology stocks, amid broad based selling in the market

The S&P BSE Sensex index shed 1.89% to 59,984.70. This is the first time the 30-stock index closed below 60,000 mark in nearly three weeks. The NSE Nifty 50 Index fell 1.94% to 17,857.25. This is the first time the Nifty closed below 18,000 in over two weeks. ICICI Bank Ltd. contributed the most to the index decline, decreasing 4.4%. Adani Ports & Special Economic Zone Ltd. had the largest drop, falling 7.7%. Today, 43 of 50 shares fell, while 7 rose.

The broader indexes almost mirrored their larger peers with the S&P BSE MidCap index and the S&P BSE SmallCap index shedding over 1.3%. Barring S&P BSE Capital Goods, all the other 18 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty and S&P BSE Bankex indexes falling over 3%.

The market breadth was skewed in favour of bears. About 988 stocks advanced, 2,292 declined and 125 remained unchanged.

"Initially, weak signals from the global counterparts were weighing on the sentiment which further deteriorated with a decline in index majors. Nifty slipped below the crucial support zone of the 18,000 mark and settled close to the 17,865 zone. Selling pressure was widespread and most sectoral indices ended lower wherein banking, metal and realty were among the top losers", Ajit Mishra, VP- Research at Religare Broking Ltd. wrote in a note, before adding that "this fall in the index has derailed the recent recovery and we may see a further slide in the following sessions. On the benchmark front, Nifty has next support around 17,550-17,650 zone. We reiterate our cautious view on markets and suggest restricting leveraged positions."

Morgan Stanley downgrades India stocks to equal-weight from overweight in its model portfolio, citing strong gains. The brokerage firm cuts Brazil equities similarly, citing better prospects in other markets.

• Upgrades equities in Indonesia to overweight citing economic reopening in Southeast Asia

• Upgrades Saudi Arabia on firmer energy prices and and Chile on relatively better economic outlook among Latin American nations

• Key inflection points for stock markets include a potentially tighter Fed policy and energy markets, reopening in Southeast Asia and incremental policy easing in China: Morgan Stanley

• Stays equal-weight on China; maintains underweight on Taiwan citing a downcycle in semiconductor sector and slowing retail investor boom

Source: Bloomberg

KEC International Ltd. has secured new orders of Rs 1,082 crore in the T&D business.

In an exchange filing, the infrastructure EPC major said that the the orders pertained to the 400 kV transmission line order in SAARC, from Power Grid Company of Bangladesh and 400 kV transmission line order in India, from a leading private developer.

The company reported a sequential decline in net profit and Ebitda in the September quarter, post market hours Wednesday

KEC International Q2FY22 (Consolidated, YoY)

• Revenue up 10% at Rs 3,587.46 crore Vs Rs 3,257.67 crore

• Net profit down 44% at Rs 80.29 crore Vs Rs 142.55 crore

• Ebitda down 14% at Rs 252.96 crore Vs Rs 293.10 crore

• Margin at 7.1% Vs 9%
  
  

September Quarter (Consolidated)

• Net profit at 1,096.57 crore vs Rs 424.15 crore YoY (Bloomberg Consensus Estimate: Rs 1,180 crore)

• Interest income at Rs 6,668.70 crore vs Rs 7,148.10 crore YoY

• Total costs at Rs 8,226.78 crore vs Rs 8,781.93 crore YoY

• Other income at Rs 2,037.60 crore vs Rs 1,683.89 crore YoY

• Gross NPA at 9.56% vs 9.69% QoQ

Source: Exchange Filing

September Quarter Number (Consolidated, QoQ)

• Revenue down 4% at Rs 2,419 crore Vs Rs 2,525 crore (BBG estimate : Rs 2367.95 crore)

• Net profit fell 13% to Rs 316 crore from Rs 365 crore (BBG estimate : Rs 301.65 crore)

• EBITDA down 12% to Rs 423 crore crore Vs Rs 481 crore, down % (BBG estimate : Rs 413.44 crore)

• Margins at 17.5% Vs 19% (BBG estimate : 17.5%)

Source: Exchange Filing

Gujarat Gas (Consolidated, QoQ)

• Revenue from operations at Rs 3,685.90 crore vs Rs 3,065.93 crore (Estimate: Rs 3,650 crore)

• Net profit at Rs 249.13 crore vs Rs 476.69 crore

• Total costs at Rs 3,370.83 crore vs Rs 2,449.45 crore

• Other income at Rs 19.21 crore vs Rs 21.28 crore

Source: Exchange Filing

• Users of short-video platform Moj will be able to shop from Flipkart through in-app integration.

• Moj's 160 million+ monthly active users can make purchases directly from video screen.

• Flipkart says partnership aims to make e-commerce accessible for next 200 million customers.

• Live commerce through short videos to reach $5 billion in gross merchandise value by 2025: RedSeer report

India’s sugar production in the year that began Oct. 1 will probably decline to 30.5 million tonnes from about 31.2 million tonnes in 2020-21 as more cane juice and B-heavy molasses will be used to make ethanol, according to the Indian Sugar Mills Association. 

The current estimate compares with July forecast of 31 million tonnes

It is estimated that the diversion of cane juice and B-heavy molasses to make ethanol will reduce sugar production by about 3.4 million tonnes in 2021-22

Opening stockpile on October 1 was about 8.29 million tonnes vs 10.74 million tonnes a year ago

Mills will need to export 6 million tonnes surplus sugar this season vs 7.07 million tonnes a year earlier

Shares of V-Guard Industries Ltd. reversed losses and added nearly 2% in intraday trade, to Rs 254.65 after the company reported net income for the second quarter that beat the average analyst estimate.

September Quarter Results (Consolidated, QoQ)

• Net profit at Rs 59.40 crore vs Rs 25.54 crore (Bloomberg consensus estimate: Rs 53.29 crore)

• Revenue at Rs 907.40 crore vs Rs 565.18 crore (Estimate: Rs 735 crore)

• Total costs at Rs 826.78 crore vs Rs 532.46 crore

Commentary & Context

• Sharp increase in input cost adversely impacted gross margins: MD Mithum Chittilappilly

• While the company has taken pricing actions to offset a major part of cost inflation, more action will follow in the coming months: MD Mithum Chittilappilly

Of the 22 analysts tracking the company, 15 maintained 'buy', four maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.8%

Adani Transmission Ltd. has obtained $700 million revolving project loan from eight banks.

• On a fully-drawn basis, the capex revolving structure of the facility provides funding of $1.1 billion.

• Lenders: DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

• The loan obtained will be utilised in funding four transmission projects in Gujarat and Maharashtra.

Source: Exchange Filing by Adani Transmission

Shares of Bajaj Finserv Ltd. rose 2% in intraday trade to Rs 18,372.05 apiece after the company reported sequential growth in net profit and interest income in the September quarter.

September Quarter Results (Consolidated, YoY)

• Net profit at Rs 1,997.87 crore vs Rs 1,618.27 crore

• Revenue from operations at Rs 18,009.22 crore vs Rs 15,049.58 crore

• Interest income at Rs 7,732.97 crore vs Rs 6,720.86 crore

• Total costs at Rs 15,215.84 crore vs Rs 12,894.90 crore

Of the 11 analysts tracking the company, eight maintained 'buy' and three maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 22.8%.

India's stock benchmarks declined, dragged by losses in metals, information technology, consumer durables and realty stocks.

The S&P BSE Sensex fell 0.94% to 60,567.39. The NSE Nifty 50 index declined by similar magnitude to 18,028.40. The 50-stock index slipped below 18,000 mark in intra-day trade after three session. ICICI Bank Ltd. contributed the most to the index decline, decreasing 2.4%. Adani Ports & Special Economic Zone Ltd. had the largest drop, falling 6.3%. In midday trading, 40 of 50 shares fell, while 10 rose.

The broader indexes almost mirrored their larger peers with the S&P BSE MidCap index and the S&P BSE SmallCap index shedding over 0.6%. Barring S&P BSE Capital Goods, all the other 18 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty Index shedding over 2.6%.

The market breadth was skewed in favour of bears. About 1,023 stocks advanced, 2,136 declined and 133 remained unchanged

• As of June 30, serve 337 million customers through the Paytm super app

• Recorded Rs 4 lakh crore GMV as of FY21, which includes only payments from customers to merchants

• Have 22 million merchants on the Paytm network

• Have Rs 5,831 crore worth deposits, have also disbursed 6.5 million loans last year

• Brand value for Paytm is estimated at Rs 47,250 crore

• Marketing and promotion spends have fallen to Rs 533 crore in FY21 from over Rs 3,400 crore in FY19

• Revenue in Q1FY22 rose to Rs 891 crore from Rs 551 crore a year ago

• Not seeing anything bright enough for us to buy right now

• Don't see any extraordinary need for funds beyond this IPO right now

• We don't and we wont give cashbacks to the customers

• If the merchants or the financial institutions we work with want to give some cashbacks or rewards to the customers, we are happy about it

• Our business model is to not be a credit player, we will not apply for an NBFC license

• The payments bank in our group could consider applying for a small finance bank license

Vijay Shekhar Sharma, MD & CEO, One97 Communications

Source: One97 Communications Press Briefing

• HDFC AMC raised to 'buy' at KR Choksey; Price target: Rs 3,326

• Axis Bank raised to 'buy' at KR Choksey; Price target: Rs 936

• United Spirits raised to 'add' at IIFL; Price target: Rs 1,010

Source: Bloomberg

• Minda Industries raised to 'buy' at KR Choksey; Price target: Rs 904

• SBI Life raised to 'buy' at KR Choksey; Price target: Rs 1,435

• UPL raised to 'buy' at KR Choksey; Price target: Rs 886

Source: Bloomberg

• Indian bonds gain for a second day supported by a sharp slide in crude prices, offsetting the impact of the RBI widening its liquidity-draining operations. The rupee gains amid share-sale related flows.

• 10-year yields fall 2bps to 6.31%; 5-year yield drops 1bp to 5.70%

• USD/INR down 0.2% at 74.85

Source: Bloomberg

• Most yields along the India sovereign yield curve fell, with 14-year bonds moving the most in Thursday morning trading.

• The 4-year yield fell 0.9bps to 5.361%

• The 10-year yield fell 2.6bps to 6.31%

• The 14-year yield fell 3.3bps to 6.776%

• The 4-year-10-year yield spread was 94.9bps, vs previous close 96.6bps

• The top court set aside the Delhi High Court order that had allowed the refund

• The high court order was delivered in May last year against which the central government had approached the Supreme Court.

• The construction arm of Larsen & Toubro Ltd. has secured a large order for its buildings and factories business from Central Public Works Department (CPWD) to construct common central secretariat integrated buildings in New Delhi.

• The project is scheduled to be completed in 24 months.

• Larsen & Toubro defines large order to be the range of Rs 2,500 crore- Rs 5,000 crore

Shares of Torrent Power Ltd. rose nearly 7% in intraday trade to Rs 534 apiece after the company reported net income above analyst estimate for the second quarter.

September Quarter Numbers (Consolidated, YoY)

• Revenue up 17% at Rs 3,647.62 crore Vs Rs 3,128.73 crore (Bloomberg Consenus Estimate: Rs 3,347 crore)

• Net profit up 82% at Rs 368.84 crore Vs Rs 202.17 crore (Estimate: Rs 339 crore)

• Ebitda up 32% at Rs 938.32 crore Vs Rs 711.12 crore

• Margin at 25.7% Vs Rs 22.7%

Of the 14 analysts tracking the company, seven maintained 'buy', four maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 10.6%.

Trading volume on the stock was 5.0 times the 30-day average volume, for this time of the day.

Shares of IndusInd Bank Ltd. rose 8.70% in intraday trade to Rs 1,242 apiece, after the net income in the September quarter beat the average analyst estimate.

• Net profit for the private bank increased 73% year-on-year to Rs 1,146 crore in the three months ended September (Bloomberg Consensus Estimate: Rs 1,028-crore)

• Net interest income, or core income, rose 11.6% over a year earlier to Rs 3,658 crore.

• Other income rose to Rs 1,838 crore, up 18.2% from a year ago.

• Asset quality for IndusInd Bank improved on a sequential basis.

• Gross non-performing asset ratio stood at 2.77% compared with 2.88% as of June.

• Net NPA, too, improved 4 basis points to 0.8%.

Of the 51 analysts tracking the company, 46 maintained 'buy', three maintained 'hold' and two maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.2%. Trading volume on the stock was 8.1 times the 30-day average volume, for this time of the day.

• Indian stocks slipped on concerns that a central bank plan to drain cash may temper liquidity-led gains in equities.

• The expiry of monthly derivative contracts later today may also be contributing to losses. 

• The Reserve Bank of India said it will pull liquidity from the banking system for longer periods, a step that appears to be aimed at normalizing liquidity and manage a potential gush of cash on account of large initial share sales in the coming weeks.

• Punjab National Bank Ltd. has 2.33 million shares change hands in two bunch trades.

• Details of the buyers and sellers are not immediately known

Source: Bloomberg

Indian equity benchmarks opened lower, dragged by losses in metal and oil and gas stocks.

The S&P BSE Sensex fell 0.3% to 60,965.25. The NSE Nifty 50 declined by a similar magnitude to 18,157.15. ICICI Bank Ltd. contributed the most to the index decline, decreasing 1.6%. Titan Co Ltd. had the largest drop, falling 3.9%. In early trading, 34 of 50 shares fell, while 16 rose.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap declining 0.1%. Fifteen of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Metals index falling nearly 2%.

The market breadth was skewed neither in favour of bulls nor in favour of bears. About 1,167 stocks advanced, 1,192 declined and 91 remained unchanged.

Adao Enterprises is in talks with at least half a dozen sovereign and global pension funds and energy companies to raise $2 billion in equity sales, Economic Times reports citing banking sources familiar with the matter.

Potential Invests: Abu Dhabhi Investment Authority, The Qatar Investment Authority, a BNP Paribas arm, TotalEnergies, Snam, the Ontario Teachers' Pension Plan and Apollo Global.

The planned equity sale could be in the range of 5-10%, according to one of the banking sources; the deals are likely to be finalised in the next few quarters

• Titan Co cut to 'reduce' at Spark Capital Advisors; Price target: Rs 2,300

• Maruti Suzuki cut to 'add' at Spark Capital Advisors; Price target: Rs 8,110

• IndusInd Bank raised to 'overweight' at JPMorgan; Price target: Rs 1,400

Source: Bloomberg

Indian bonds may be supported by a sharp slide in crude prices which will ease some worries over inflation. Shorter Indian rates will be watched after the central bank on Wednesday said it will drain liquidity for longer periods.

• The Reserve Bank of India will drain up to Rs 50,000 crore ($6.7 billion) via a long-term 28-day reverse repo on Nov. 2, it said after close of markets Wednesday. It has so far relied on 7- and 14-day operations

• USD/INR up 0.1% at 75.0275 Wednesday

• 10-year yields fell 3bps to 6.34% on Wednesday

• Global funds sold net Rs 1,910 crore of India stocks Wednesday: NSE

• They sold Rs 35 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 167 crore of corporate debt

• State-run banks sold Rs 765 crore of sovereign bonds on Oct. 27: CCIL data. Foreign banks sold Rs 141 crore of bonds

Source: Bloomberg