Sensex, Nifty Snap Four-Day Losing Streak Aided By ICICI Bank
Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.
KEY HIGHLIGHTS
Closing Bell
Indian equity benchmarks snapped a four-losing streak in a volatile session, aided by gains in banking stocks.
The S&P BSE Sensex index rose 0.24% to 60,967.05. The NSE Nifty 50 Index added 0.06% to 18,125.40. Both the benchmarks slipped as much as 0.75% and rose over 0.75% in intraday trade.
The broader indexes underperformed their larger peers with both the S&P BSE MidCap index and the S&P BSE SmallCap indexes shedding over 1.6%. Barring S&P BSE Bankex and S&P BSE Finance, all the other 17 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty index falling over 2.5%
The market breadth was skewed in favour of bears. About 1,044 stocks advanced, 2,312 declined and 174 remained unchanged.
JSW Steel Plans Colour-Coated Steel Mill In Kashmir
JSW Steel Ltd. will invest Rs 150 crore ($20 million) to set up 1,20,000 tonnes a year colour-coated steel mill at Pulwama in Kashmir, according to a statement from the company.
Home Minister Amit Shah presented land allocation papers to JSW Steel Chairman Sajjan Jindal.
Torrent Pharma Gains The Most In Five Months Ahead Of Reporting Q2 Numbers
Shares of Torrent Pharmaceuticals Ltd. rose over 5.2% in intraday trade, the most in five months, to Rs 3,124.85 apiece. The company is scheduled to report its earnings for the September quarter on Tuesday.
Trading volume was 15% above the 20-day average for this time of the day.
The company trades at 39 times its estimated earnings per share for the coming year.
Analysts have 15 'buy', seven 'hold' and seven 'sell' recommendations on the stock.
Realty Stocks Decline; NSE Nifty Realty Index Down Over 2%
Policybazaar, Paytm Among Seven Companies To Win SEBI Approval For IPOs
PB Fintech, the parent of Indian online insurance aggregator Policybazaar, and One 97 Communications Ltd. that operates Paytm have won SEBI's approval to launch IPOs, according to the latest update issued by the market regulator.
SEBI also approved planned IPOs of ESAF Small Finance Bank, Sapphire Foods, Anand Rathi Wealth, HP Adhesives and Tarsons Products
BPCL Asset Sale Delayed As Suitors Struggle For Partners: Bloomberg
India's plan to privatise BPCL has run into rough weather
Bidders struggling to find partners and spread their financial risks.
Vedanta Group, Apollo Global and I Squared Capital talking to global energy giants and pension funds.
Some bidders finding it difficult to invest due to sustainability rules.
Source: People familiar with the matter
India To Import Coking Coal From Russia: Steel Minister
India has signed a preliminary agreement with Russia for importing metallurgical coal: Steel Minister Ram Chandra Prasad Singh
India will seek application for specialty steel investments under PLI plan: Steel Minister
SAIL examining bidding for government's PLI scheme: Soma Mondal, Chairman, SAIL.
Analyst Call: Reliance Industries, Supreme Industries
Reliance Industries reinstated 'hold' at IDBI Capital Market; Price target: Rs 2,825.
Supreme Industries raised to 'hold' at IDBI Capital Market; Price target: Rs 2,702.63.
Supreme Industries raised to 'buy' at BOB Capital Markets; Price target: Rs 2,735
Source: Bloomberg
Colgate-Palmolive Q2 Net Income Misses Analyst Estimate
Shares of Colgate-Palmolive India Ltd. slipped after the company reported net income for the second quarter that missed the average analyst estimate.
September quarter results (Consolidated, QoQ)
Net income up 15.38% at Rs 269.17 crore vs Rs 233.23 crore (Bloomberg Consensus Estimate: Rs 290 crore)
Revenue up 16% at Rs 1,343.96 crore vs Rs 1,157.86 crore (Estimate: Rs 1,370 crore)
Total costs at Rs 998.05 crore vs Rs 856.99 crore
Other income at Rs 6.51 crore vs Rs 5.21 crore
Company declared a first interim dividend of Rs 19 per equity share of Re 1 each (face value) for the Financial Year 2021-22. The record date for the interim dividend is November 2. The company also approved the reappointment of M Chandrasekar as a Whole-time Director for five years with effect from January 2, 2022.
Of the 36 analysts tracking the company, 20 maintained 'buy', 12 maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17%.
United Spirits On Track For The Longest Losing Streak In Over Three Years
United Spirits Ltd. is lower for the eighth straight day, on track for the longest losing streak since the period ended May 15, 2018.
United Spirits has lost a total of 8.3% during the streak while the Sensex increased 1.3%.
United Spirits will report its earnings for the quarter ended September on Wednesday. The company beat EPS estimates four time in the past eight quarters.
NSE Nifty Auto Index Down Over 1.5%
SRF Slips As Q2 Net Income Misses Estimate
Shares of SRF Ltd. shed nearly 4.4% to Rs 2,120 apiece after the company reported net income for the second quarter that missed the average analyst estimate.
September Quarter Results (Consolidated, QoQ)
Net income down 3.2% at Rs 382.45 crore vs Rs 395.28 crore (Bloomberg Consensus Estimate: Rs 420 crore)
Revenue up 5.17% at Rs 2,838.97 crore vs Rs 2,699.40 crore (Estimate: Rs 2,757 crore)
Total costs at Rs 2,317.67 crore vs Rs 2,178.27 crore
Other income at Rs 11.12 crore vs Rs 13.78 crore
Of the 25 analysts tracking the company, 18 maintained 'buy', five maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 15.2%
Paint Companies Slip After ICICI Securities Downgrades Stocks Citing Input Price Inflation
Shares of paint manufacturers fell after ICICI Securities downgraded paint stocks, and pointed out that rise in input prices and competitive pressure would have an adverse impact on the near-term earnings.
In a report dated October 24, ICICI Securities said that companies have to choose between market share and margin over the next two years.
Bharat Forge Announces VRS Scheme For Eligible Employees Working At Mundhwa Plant In Pune
Bharat Forge Ltd. has announced a Voluntary Retirement Scheme for its permanent employees. Employees age over 40 years and have completed 10 years of service at its Mundhwa plant in Pune are eligible for the scheme.
Of the 29 analysts tracking the company, 24 maintained 'buy', two maintained 'hold' and five maintained 'sell' recommendations.
Analyst Calls: Supreme Industries, Minda Corp
Supreme Industries raised to 'buy' at Elara Securities India; Price target: Rs 3,099
Minda Corp rated 'new buy' at Elara Securities India; Price target: Rs 213
Source: Bloomberg
Ramco Cements Q2 Net Income Above Analyst Estimate
Ramco Cements Ltd. reported net income for the September quarter above average analyst estimate
September Quarter Earnings (Consolidated, QoQ)
Net income up 205.32% at Rs 519.12 crore vs Rs 170.02 (Bloomberg Consensus Estimate: Rs 174 crore)
Revenue up 20.58% at Rs 1,453.08 crore vs Rs 1,205.08 crore (Estimate: Rs 1,350 crore)
Total costs at Rs 1,231.60 crore vs Rs 988.46 crore
Other income at Rs 7.22 crore vs Rs 5.31 crore
Of the 33 analysts tracking the company, 19 maintained 'buy', eight maintained 'hold' and six maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.6%
Mid-Day Market Update: Sensex, Nifty Edge Higher; ICICI Bank Leads Advance
India's stock benchmarks shrugged off the early losses to advance in a volatile session, aided by gains in banking stocks.
The S&P BSE Sensex rose 0.32% at 61,015.45. The NSE Nifty 50 index declined 0.10% to 18,146.45. ICICI Bank Ltd. contributed the most to the index gain and had the largest move, increasing 12.5%. In midday trading, 12 of 50 shares rose, while 38 fell.
The broader indices underperformed their larger peers with S&P BSE MidCap and S&P BSE SmallCap indexes declining 1.5%. Barring S&P BSE Finance, S&P BSE Bankex and S&P BSE metal indexes, all the other 16 sectoral indexes compiled by the BSE Ltd. declined, with S&P BSE Realty, Consumer Discretionary and Consumer Durables indexes falling nearly 2%. On the flipsad, S&P BSE Bankex index rose over 3%
The market breadth was skewed in favour of bears. About 987 stocks advanced, 2,245 declined and 183 remained unchanged.
European Markets Open Higher Despite Inflation Concerns
UBS: Pent-Up Demand To Support India Recovery Through March
Pent-up demand from India's affluent, whose spending has helped power the economic recovery, could taper off over the next two quarters.
The pent-up demand story is definitely going to sustain, over roughly the next three to six months.
The key question is, as India moves towards 2022, what is going to drive the growth story as this pent-up demand fizzles out.
Going forward, the recovery either has to be led by the government spending on infrastructure or residential real estate, with mortgage rates a decade low.
Tanvi Gupta Jain, Chief Economist, UBS Securities India
Source: Interview to Bloomberg TV
Banking Stocks Extend Gains
RBI Engaging With Auditors To Improve Audit Quality: Governor Shaktikanta Das
Role of auditors has become even more important today, and problems arise when independence of auditors is compromised.
With globalization and increasing complexity of the financial system, audit as a public good has become vital for sound, stable and vibrant financial system.
Auditors need to update and upgrade skills on constant basis
Profile of tomorrow’s auditor will be that of a critical yet constructive challenger
Shaktikanta Das, RBI Governor
Source: Address at National Academy of Audit and Accounts.
Coforge Sheds Over 10% Post Q2 Numbers
Shares of Coforge Ltd. shed over 12% in intraday trade to Rs 4,726.6 apiece after the company reported its September quarter numbers before market open today.
Second Quarter Results (Consolidated, QoQ)
Net income up 22.7% at Rs 161.5 crore vs Rs 131.2 crore QoQ
Revenue up 7.4% at Rs 1,569.4 crore vs Rs 1,461.6 crore
Total costs at Rs 1,371 crore vs Rs 1,314.5 crore
Other income at Rs 7.7 crore vs Rs 16.1 crore
Commentary & Context
Company aims at least 22% constant currency growth during FY22.
Company aims adjusted Ebitda margin of 19% for FY22.
Of the 27 analysts tracking the company, 17 maintained 'buy', five maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 7.9%.
Broader Indices Underperform Their Larger Peers
Rupee Bonds Gain As Traders View RBI Minutes Dovish
Indian bonds edge higher as traders viewed the minutes of the central bank’s October meeting as dovish. The rupee trades lower.
10-year yields down 3bps to 6.34%; 5-year yield drops 1bp to 5.73%
USD/INR up 0.2% at 75.07
Source: Bloomberg
IRCTC Declines Nearly 15% In Intraday Trade
Analyst Calls: PVR, Inox Leisure, JSW Steel
PVR raised to 'buy' at Emkay Global; Price target: Rs 1,880
Inox Leisure raised to 'buy' at Emkay Global; Price target: Rs 535
JSW Steel raised to 'outperform' at IDFC Securities; Price target: Rs 840
Source: Bloomberg
India Long End Richer
Longer-term India sovereign securities gained in Monday morning trading.
The 1-year yield remained unchanged at 4.28%
The 10-year yield fell 2.3bps to 6.341%
The 14-year yield fell 2bps to 6.835%
The 1-year-10-year yield spread was 206.1bps, vs previous close 208.3bps
Source: Bloomberg
Analyst Calls: MCX, ICICI Bank, Federal Bank
MCX cut to 'add' at ICICI Securities; Price target: Rs 1,965
Federal Bank reinstated 'buy' at Asian Markets; Price target: 125
ICICI Bank reinstated 'buy' at Asian Markets; Price target: 950
Source: Bloomberg
Gland Pharma Declines 5% After Q2 Miss
Shares of Gland Pharma Ltd. shed nearly 5% in intraday trade to Rs 3,512.4 apiece after the company reported net income below the average analyst estimate for the quarter ended September.
Gland Pharma Q2FY22 (Consolidated, YoY)
Net profit up 38% at Rs 302.08 crore Vs Rs 218.85 crore (Estimate: Rs 307 crore)
Revenue up 30% at Rs 1,080.46 crore Vs Rs 831.50 crore (Bloomberg estimate 1,084 crore)
Ebitda up 27% at Rs 376.59 crore Vs Rs 297.64 crore (Estimate: 389 crore)
Margin at 34.9% Vs 35.8%
Of the 14 analysts tracking the company, 10 maintained 'buy', two maintained 'hold' and two maintained 'sell' recommendations. The overall consensus of analysts tracked by Bloomberg implied an upside of 17.6%.
TVS Motor To Strengthen Presence In Iraq With Bahwan International Partnership
TVS Motor Company Ltd. signed a tri-party deal with Bahwan International Group, according to which ARATA International, a subsidiary of Bahwan Group, will be the new distributer.
Bahwan Group intended to operate over 30 dealerships for TVS Motor, including state of art facilities in all the major cities of Iraq.
Source: Exchange Filing
NSE Nifty 50 Index Slips Below 18,000 In Intraday Trade
Analyst Calls: HDFC Life, Hindustan Zinc, Macrotech
HDFC Life raised to 'buy' at Kotak Securities; Price target: Rs 825.
Hindustan Zinc cut to 'add' at Kotak Securities, Price target: Rs 355
Macrotech raised to 'buy' at Kotak Securities; Price target: Rs 1,260.
Source: Bloomberg
ICICI Bank Shares Surge On Record Q2; RSI Above 70
Shares of ICICI Bank Ltd. rose 9% in intraday trade to a record Rs 827.65 apiece after the lender reported a record profit for the September quarter, aided by loan growth and core income.
Net profit for the quarter-ended September rose 29.6% to Rs 5,510.95 crore, as compared with Rs 4,251 crore a year ago. Net interest income was up 24.8% over last year to Rs 11,689.7 crore. It's net NPA ratio fell to below 1% while the gross NPA ratio fell to 4.82%. ICICI Bank reported the lowest level of net NPAs in nearly seven years.
All the 52 analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 7%. The relative strength index on the stock was 82, suggesting that it may be overbought.
RIL Shares Gain 2% In Intraday Trade Before Paring Gains
Shares of Reliance Industries Ltd. rose 2% in intraday trade to Rs 2,680 apiece after the company reported net profit above average analyst in the September quarter, post market hours Friday.
RIL Q2FY22 (Consolidated, QoQ)
Revenue up 20% at Rs 1,67,611 crore Vs Rs 1,39,949 crore
Net profit up 11.50% at Rs 13,680 crore Vs Rs 12,273 crore
Reliance Retail Q2FY22 (Consolidated, QoQ)
Revenue up 19% to Rs 39,926 crore Vs Rs 33,566 crore
Net profit up 76% to Rs 1,695 crore Vs Rs 962 crore
Ebitda up 50% at Rs 2,913 crore Vs Rs 1,941 crore
Margins at 7.3% Vs 5.8%
Of the 36 analysts tracking the company, 22 maintained 'buy', nine maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 1.4%.
NSE Nifty Bank Index Up Over 1%
Opening Bell: Sensex, Nifty Volatile; Reliance, ICICI Bank Advance
Indian equity benchmarks opened little cam, dragged by information technology, auto, fmcg and realty stocks
The S&P BSE Sensex shed 0.1% to 60,760.58. The NSE Nifty 50 declined by a similar magnitude to 18,066.40. Kotak Mahindra Bank Ltd. contributed the most to the index decline, decreasing 2.0%. Divi's Laboratories Ltd. and IndusInd Bank Ltd. had the largest drop, falling nearly 3%. In early trading, 41 of 50 shares fell, while 9 rose.
The broader indexes underperformed their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap shedding over 1.5%. Fifteen of the19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty index falling by nearly 3.5%.
The market breadth was skewed in favour of bears. About 864 stocks advanced, 1,828 declined and 137 remained unchanged.
In Focus: Non-Bank Finance Companies After RBI Plans To Cap IPO Financing
Shares of non-bank finance companies may move after the Reserve Bank of India said it will cap the amount that investors can borrow to invest in companies’ first-time share sales.
Lenders can offer up to 10m rupees per borrower for new share listings when the limit is implemented by lenders from April
In Focus: Bajaj Finance Ltd., Sundaram Finance, Shriram City Union Finance, Aditya Birla Capital, Edelweiss Financial Services, IIFL Finance
Rupee Bond Traders To Assess RBI's Minutes
Indian bond traders will parse the minutes of RBI’s October meeting for cues about the future path of policy normalization.
India’s monetary policy makers turned increasingly confident that the economic recovery has momentum, allowing the central bank space to focus on dampening inflationary pressures, the central bank said in minutes released after the close of markets on Friday
While five members voted to keep the policy stance accommodative, one member said short-term rates need to be raised to show the central bank’s seriousness in fighting price pressures. Not all shared that sense of urgency, according to minutes of their last meeting on Oct. 6-8
RBI Governor Shaktikanta Das will address the National Academy of Audit and Accounts at 11 a.m. Mumbai time
USD/INR up 0.1% at 74.8963 on Friday
10-year yields rose 3bps to 6.36% on Friday; yields rose after auction cutoffs disappointed
Global funds sell net Rs 2,700 crore of India stocks Friday: NSE
They bought Rs 1,110 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 468 crore of corporate debt.
State-run banks bought Rs 3,750 crore of sovereign bonds on Oct. 22: CCIL data. Foreign banks sold Rs 2,310 crore of bonds
Source: Bloomberg
Analyst Calls: PVR, Heritage Fods, Jubilant Pharmova, Biocon, LIC Housing
PVR raised to 'reduce' at Spark Capital Advisors; Price target: Rs 1,500
Heritage Foods raised to 'buy' at Jefferies; Price target: Rs 510
Jubilant Pharmova raised to 'add' at ICICI Securities; Price target: Rs 678
Biocon raised to 'buy' at Centrum Broking; Price target: Rs 437
LIC Housing raised to add at ICICI Securities; Price target: Rs 447
Source: Bloomberg
SGX Nifty Hints At Opening Gains; ICICI Bank, RIL, Tata Consumer In Focus
Most Asian stocks fell early Monday as traders weighed inflation risks, a Covid-19 outbreak in China and earnings prospects for major technology firms. Turkey’s lira slid to a record low amid a diplomatic spat.
Equities fell in Japan and South Korea, while Australia edged up. The S&P 500 and Nasdaq 100 futures dipped, the 10-year U.S. treasury yield rose and a gauge of the dollar was steady. Federal Reserve Chair Jerome Powell on Friday flagged inflation could stay higher for longer, while making clear the Fed will begin tapering bond purchases shortly but stay patient on rate hikes.
India’s SGX Nifty 50 Index futures for October delivery rose 0.1% to 18,155.50, while MSCI Asia Pacific Index fell 0.3%. The Nifty 50 fell 0.4% on Friday to 18,114.90.
The lira tumbled after President Recep Tayyip Erdogan said the ambassadors of 10 nations, including the U.S., Germany and France, were no longer welcome in Turkey after they demanded the release of a prominent businessman and philanthropist.
Elsewhere, Crude oil extended a rally. Saudi Arabia said oil producers shouldn’t take the rise in prices for granted because the coronavirus pandemic could still hit demand. Bitcoin was trading around $61,000.
Back home, Reliance, ICICI Bank, Tata Consumer, Crompton, Gland Pharma, Tata Elxsi may react as the companies reported quarterly results after the market closed on Friday. Tech Mahindra, Colgate, Indus Towers are among companies scheduled to report earnings on Monday. Foreign investors sold net Rs 2,420 crore of stocks on Oct. 21, according to NSDL website.