Sensex, Nifty Log Biggest Single-Day Losses In Six Months
Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.
KEY HIGHLIGHTS
Titan Shares Decline Even As Analysts Raise Target After Q2 Beat
Nykaa IPO Subscription Status: Day 1 Updates
Adani Ports & SEZ Slips The Most In 19 Weeks On Q2 Miss
IndusInd Bank Up Nearly 9% After Q2 Net Income Beats Analyst Estimate
Larsen & Toubro Rises The Most In 15 Weeks After Reporting In-Line Q2
Closing Bell
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, Brazil Equities To Equal-Weight
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 Wins New Order Worth Rs 1,082 Crore
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%
Indian Bank Q2 Net Income Misses Estimates
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
Marico Q2 Net Income Beats Estimates
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 Q2 Revenue Beats Estimate
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
Flipkart Enters Live Video, Social Commerce Through Partnership With Moj
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 Sugar Production In 2021-22 Seen Falling To 30.5 Million Tonnes From 31.2 Million Tonnes: ISMA
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
V-Guard Industries Gains After Q2 Net Income Beat Estimate
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%
Nifty 50 Slips Below 18,000 In Intraday Trade After Three Sessions
Adani Transmission Raises $700 Million In Revolving Project Financing
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
Analysts Raise Targets On ITC Stock After Strong Q2
Titan Shares Decline Even As Analysts Raise Target After Q2 Beat
Shares of Titan Co. declined the most in a week even as analysts raised the target prices after the company's second-quarter net income beat estimates.
Analysts cited jewellery margins, revival in unique buyer growth and cost structure changes for better margins in eyewear and watches segments.
Bajaj Finserv Advances After Q2 Numbers
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%.
Mid-Day Market Update: Sensex, Nifty At Day's Low; ICICI Bank Leads Decline
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
European Markets Open Mixed Ahead Of Key Earnings, ECB Rate Decision
Vijay Shekhar Sharma At Paytm's IPO Briefing
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
Nykaa IPO Subscription Status: Day 1 Updates
Nykaa's three-day IPO got off to a strong start, with the portion meant for retail investors getting fully subscribed within the opening hour
Subscription Details: Day 1
The IPO was subscribed 0.83 times or 83% as of 3 p.m. on Oct. 28.
Institutional investors: 0.46 times.
Non-institutional investors: 0.37 times.
Retail investors: 2.66 times.
Shareholders: 0.41 times.
Analysts Actions: HDFC AMC, Axis Bank, United Spirits
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
Analyst Actions: Minda Industries, SBI Life, UPL
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
Rupee Bonds Gain As Crude Crashes, Rupee Higher
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
Sensex, Nifty Near Day's Low
India Yields Mostly Lower
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
IRCTC Shares Advance On Stock Split Plans
Apex Court Allows Govt's Appeal Against Airtel On The Issue Of Rs 932 Crore GST Refund
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.
L&T Construction Arm Bags Large Order For Buildings & Factories Biz
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
Analysts Upbeat On SBI Life Insurance Post Q2 Results
Analysts remained upbeat on SBI Life Insurance Co. after Q2 results, owing to a balanced product mix and value of new business offering potential for margin improvement.
The private insurer’s net profit increased sequentially in the three months ended September but missed analyst estimates. Its revenue and net premiums also rose over the preceding quarter.
Shares of SBI Life gained more than 3% in early trade on Thursday to Rs 1,221.75 apiece. Of the 38 analysts tracking the company, 36 recommend a 'buy' and two suggest a 'hold', according to Bloomberg data. The 12-month consensus price target implies an upside of 16.8%.
Torrent Power Advances On Q2 Beat
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.
Adani Ports & SEZ Slips The Most In 19 Weeks On Q2 Miss
Shares of Adani Ports & Special Economic Zone Ltd. shed nearly 6.25% in intraday trade, the steepest decline in 19 weeks, to Rs 699.3 apiece after the company reported net income and sales below analyst estimates in September quarter.
September Quarter Numbers (Consolidated, QoQ)
Revenues down 22.48% at Rs 3,532.42 crore Vs Rs 4,556.81 crore
Net profit down 27.16% at Rs 951.71 crore Vs Rs 1,306.69 crore
Ebitda up 1.6% at Rs 2,268.07 crore Vs Rs 2,232.38 crore
Margins at 64.20% Vs 49%
Of the 26 analysts tracking the company, 23 maintained 'buy' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 20.9%. Trading volume was 2.9 times 30-day average volume for this time of the day. Shares of Adani Ports crossed below 200-day moving average on Q2 miss.
IndusInd Bank Up Nearly 9% After Q2 Net Income Beats Analyst Estimate
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.
Stocks Decline As RBI Prepares To Drain Liquidity
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.
NSE Nifty Metal Index Down Nearly 3%; Nalco Leads The Decline
Larsen & Toubro Rises The Most In 15 Weeks After Reporting In-Line Q2
Shares of Larsen & Toubro Ltd. rose over 4.3%, the most in over 15 weeks, to Rs 1,862 apiece, after the company reported net income for the second quarter that met the average analyst estimate. Trading volume was five times the average volume for this time of the day.
September Quarter Results (Consolidated, QoQ)
Revenue up 18.5% at Rs 34,772.9 crore Vs Rs 29,334.73 crore
Net profit up 54.92% at Rs 1,819.45 crore Vs Rs 1,174.44 crore
Ebitda up 25.9% at Rs 3,994.87 crore Vs Rs 3,171.49 crore
Margins at 11.5% Vs 10.8%
Order inflow guidance of low-to-mid teens for FY22
Order book grew 11.3% to Rs 3.3 lakh crore
Net working capital at 22% at the end of Sept-end compared to 26% YoY, 22.7% in Q1 Tendering activity picked up pace in Q2 Vs Q1.
Tenders worth Rs 2 lakh crore were issued and awards stood at Rs 86,000 crore
The pace of tenders is expected to pick-up into Q3
Of the 43 analysts tracking the company, 4 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.2%
Punjab National Bank Has 2.33 Million Shares Change Hands In Two Bunch Trades
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
PNB, RBL Bank & ICICI Bank Lead The Losses In Nifty Bank Index
Opening Bell: Sensex, Nifty Open Lower; Metal Stocks Decline
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.
Nykaa To Launch Three-Day IPO Today
Adani Enterprises In Talks For Raising Up To $2 Billion: Economic Times
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
Lupin Reports Loss In Second Quarter Due To One-Off Items
Lupin Ltd. reported a loss in the second quarter due to one-off items and a high base.
The drugmaker incurred a net loss of Rs 2,094.9 crore in the July-September period against a profit of Rs 548.2 crore in the preceding three months, according to its exchange filing late on Wednesday. A consensus of analyst estimates compiled by Bloomberg had pegged the profit at Rs 306.5 crore.
Analyst Actions: Titan, Maruti Suzuki, IndusInd Bank
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
Bond Traders To Assess RBI's Cash Drain Operations
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
SGX Nifty Hints At A Flat Open; L&T, ITC, Bajaj Auto In Focus
Most Asian stocks fell on Thursday amid concerns that the recovery from the pandemic will slow as elevated inflation forces tighter monetary policy. A gauge of the dollar ticked up.
Shares slipped in Japan and Australia and were little changed in South Korea. U.S. futures rose after the tech-heavy Nasdaq 100 touched an intraday record.
India’s SGX Nifty 50 Index futures for October delivery, which expires on Thursday, little changed at 18,210.00, while MSCI Asia Pacific Index fell 0.4%. The NSE Nifty 50 Index fell 0.3% on Wednesday to 18,210.95.
Ten-year and 30-year U.S. treasuries held a rally. Commodities including aluminum, iron ore and crude oil dropped. Investors are awaiting the European Central Bank policy meeting as well as a report later Thursday on U.S. economic growth.
Elsewhere, Bitcoin retreated below $60,000, falling further back from the peak of almost $67,000 reached last week.
Back home, L&T, ITC, Bajaj Auto, Titan, Cummins India, Lupin, Adani Ports, Deepak Nitrite, Adani Enterprises, PNB, KEC International, Dalmia Bharat, Torrent Power may react as the companies reported quarterly results after the market closed on Wednesday. IndiGo, NTPC, Marico, M&M Financial, RBL Bank, DLF are among the companies scheduled to report earnings on Thursday. Foreign investors sold net Rs 2,280 crore of stocks on Tuesday, according to NSDL website.