Sensex, Nifty Decline After Short-Lived Rebound

Indian equity benchmarks closed lower, dragged by metals, energy and basic materials stocks, in a volatile session. Focus shifts to two-day FOMC meeting which begins later today, as taper announcement is expected.

The S&P BSE Sensex index fell 0.18% to 60,029.06. The NSE Nifty 50 Index declined by similar magnitude to 17,888.95. The 50-stock gauge rose above 18,000 in intraday trade for the first time in three sessions. Reliance Industries Ltd. contributed the most to the index decline, decreasing 1.5%. Tata Steel Ltd. had the largest drop, falling 3.8%. Today, 28 of 50 shares fell, while 22 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 gaining over 1%. Twelve out of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Realty rising over 3.5%.

The market breadth was skewed in favour of bulls. About 1,952 stocks advanced, 1,301 declined and 148 remained unchanged.

BSE signed a MoU with HDFC Bank to further encourage and promote listing of start-ups and SMEs across India.

• Through this MoU, HDFC Bank and BSE will evaluate banking and lending solution for start-ups undergoing listing process on start-ups and SME platform.

• HDFC Bank will identify potential start-ups and SMEs and assist them to partner with intermediaries to list on BSE.

• Under th MoU, both BSE and HDFC Bank have agreed to conduct and participate in joint outreach activities and contribute to each other's publications on the Start-up ecosystem in India.

Source: Exchange Filing

• Moody's upgraded Macrotech Developers Ltd.'s corporate family rating to B3 from Caa1.

• Outlook on the ratings is positive.

• Upgrade reflects an improvement in Macrotech's credit profit due to debt reduction measures by the management and strong recovery in its operating performance

Source: Moody's Statement

Shares of Century Plyboards India Ltd. rose 4.68% in intraday trade to Rs 600 apiece after the company reported net income for the September quarter above average analyst estimate.

Second Quarter Results (Consolidated, QoQ)

• Net profit at Rs 99.43 crore vs Rs 31.07 crore (Bloomberg Consensus Estimate: Rs 72.4 crore)

• Revenue at Rs 813.64 crore vs Rs 457.74 crore (Estimate: Rs 650 crore)

• Total costs at Rs 674.54 crore vs Rs 418.50 crore

• Other income at Rs 6.54 crore vs Rs 5.23 crore

Of the 20 analysts tracking the company, 16 maintained 'buy' and four maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 23.5%

Jindal Steel & Power Ltd. reported revenue in the September quarter in-line with average analyst estimate.

Second Quarter numbers (Consolidated, QoQ)

• Net profit at Rs 2,583.90 crore vs Rs 2,515.71 crore

• Revenue at Rs 13,611.71 crore vs Rs 10,609.50 crore (Estimate: Rs 13,211 crore)

• Total costs at Rs 10,108.89 crore vs Rs 7,233.55 crore

• Other income at Rs 3.78 crore vs Rs 33.67 crore

Of the 28 analysts tracking the company, 25 maintained 'buy', two maintained 'hold' or one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 30.7%.

Dabur India Ltd. reported net income in the September quarter that beat average analyst estimate.

Second Quarter Results (Consolidated, QoQ)

• Net profit at Rs 504.35 crore vs Rs 437.33 crore (Bloomberg Consensus Estimate: Rs 479 crore)

• Revenue at Rs 2,817.58 crore vs Rs 2,611.54 crore (Estimate: Rs 2,706 crore)

• Total costs at Rs 2,268.47 crore vs Rs 2,128.32 crore

• Other income at Rs 112.44 crore vs Rs 84.84 crore

• EBITDA up 12% to Rs 620.71 crore crore Vs Rs 552.03 crore, down % (BBG estimate : Rs 587.08 crore)

• Margins at 22% Vs 21.1% (BBG estimate : 21.7%)

Of the 44 analysts tracking the company, 28 maintained 'buy', 13 maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10.8%.

The Defence Acquisition Council has approved the procurement of 12 Light Utility Helicopters from HAL

What Else Is Approved

• Lynx U2 Fire Control System from BEL to enhance detecton tracking of Naval war ships.

• Approval for Mid Life Upgradation of Dornier Aircraft from HAL to increase Naval capacity of coastal surveillance.

• Global procurement case of Naval guns foreclosed.

• Guns' quantity added to upgraded Short Range Gun Mountbeing, manufactured by BHEL

Source: Press Information Bureau

Jyothy Laboratories Ltd. report net income for the September quarter below average analyst estimate.

Second Quarter Results (Consolidated, QoQ)

• Net income at Rs 43.97 crore vs Rs 40.20 crore

• Revenue at Rs 585.35 crore vs Rs 525.40 crore

• Total costs at Rs 535.58 crore vs Rs 479.61 crore

• Other income at Rs 4.76 crore vs Rs 4.55 crore

Of the 18 analysts tracking the company, 16 maintained 'buy' and two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 27.1%.

Shares of PI Industries Ltd. fell 8.23%, the steepest intraday decline in 18 months, to Rs 2,834.4 apiece after the company cancelled proposal to buy Ind Swift Laboratories.

Analysts expect deal termination to hamper the company's growth over the medium term. Edelweiss Securities downgraded the stock to 'reduce' from 'hold' and cut the price target to Rs 2,718 from Rs 3,506, with an implied return of -9.36%.

Hindustan Petroleum Corp Ltd. reported net income for the second quarter than beat the average analyst estimate.

September quarter earnings (Consolidated, QoQ)

• Net profit down 4.24% at Rs 1,918.89 crore vs Rs 2,003.90 crore (Bloomberg Consensus Estimate: Rs 1,750 crore)

• Income from sales up 12.93% at Rs 87,364.27 crore vs Rs 77,356.58 crore (Estimate: Rs 77,560 crore)

• Total costs at Rs 85,746.68 crore vs Rs 75,625.84 crore

• Other income at Rs 431.30 crore vs Rs 346.52 crore

Of the 36 analysts tracking the company, 29 maintained 'buy' and seven maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 13.5%

Shares of Sun Pharmaceutical Industries Ltd. rose over 2% in intraday trade to Rs 828.8 apiece after the company reported net income for the second quarter that beat average analyst estimate

Second Quarter Results (Consolidated, QoQ)

• Net profit up 41.74% at Rs 2,047.01 crore vs Rs 1,444.17 crore (Bloomberg Consensus Estimate: Rs 1,644 crore)

• Revenue down 0.95% at Rs 9,625.93 crore vs Rs 9,718.74 crore (Estimate: Rs Rs 9,462 crore)

• Total costs at Rs 7,562.31 crore vs Rs 7,435.97 crore

• Other income at Rs 222.89 crre vs Rs 152.52 crore

Of the 40 analysts tracking the company, 34 maintained 'buy' and three maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 11.9%.

Shares of Bank of India Ltd. rose nearly 5% in intraday trade to Rs 63.35 apiece after the lender reported 100% growth in net profit in the September quarter

Second quarter results (Consolidated)

• Net profit at Rs 1,072.08 crore vs Rs 525.37 crore YoY

• Interest income at Rs 9,580.23 crore vs Rs 10,851.67 crore YoY

• Total costs at Rs 9,053.81 crore vs Rs 9,378.54 crore YoY

• Other income at Rs 2,177.71 crore vs Rs 2,335.29 crore YoY

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

India's stock benchmarks remained little changed, after fluctuating between gains and losses, as advances in realty and auto stocks were offset by loses in energy, healthcare and metal stocks.

The S&P BSE Sensex was largely unchanged at 60,078.50. The NSE Nifty 50 index also traded flat at 17,908.30. Reliance Industries Ltd. contributed the most to the index decline, decreasing 1.2%. Sun Pharmaceutical Industries Ltd. had the largest drop, falling 2.7%.

The broader indexes outperformed their larger peers with the S&P BSE MidCap index adding over 0.3% and the S&P BSE SmallCap index rising 1.1%. Eleven of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Realty index gaining nearly 2.5%.

The market breadth was skewed in favour of bulls. About 1,959 stocks advanced, 1,140 declined and 152 remained unchanged.

• Sapphire Foods India Ltd. has set a price range of Rs 1,120-Rs 1,180 per share for its IPO that could raise as much as Rs 2,073 crore, according to an advertisement in Financial Express Newspaper.

• Shareholders, including the founders are selling all the shares in the IPO. The company is not selling any new shares and will not get any fund from the sale.

• IPO opens for subscription on November 9 and closes on November 11.

Shares of Allcargo Logistics Ltd. rose nearly 20% in intraday trade to Rs 328 apiece after the company reported a sequential growth in net profit and revenue in the September quarter.

Second quarter results (Consolidated, QoQ)

• Net profit at Rs 263.39 crore vs Rs 106.83 crore

• Revenue at Rs 4,997.86 crore vs Rs 3,449.25 crore

• Total costs at Rs 4,730.84 crore vs Rs 3,334 crore

• Other income at Rs 5.26 crore vs Rs 9.59 crore

Of the six analysts tracking the company, four maintained 'buy' and two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 15.5%

• Cholamandalam cut to 'add' at Kotak Securities; Price target: Rs 660

• PI Industries cut to 'reduce' at Kotak Securities; Price target: Rs 2,800

• Dr Reddy's raised to 'add' at Choice Equity; Price target: Rs 5,200

Source: Bloomberg

• Poonawalla Fincorp raised Rs 250 crore through a 90-day commercial paper

• This is the company's first short-term debt after it was renamed and branded as Poonawalla Fincorp

• Commercial Paper will mature on January 31 and yields 3.95%

Source: Person Familiar With The Matter

• Indian government bonds advanced as a holiday-shortened week curbs weekly debt supply. The rupee edged higher.   

• 10-year yields down 2bps at 6.37%

• USD/INR down 0.1% to 74.7962

Source: Bloomberg

• Oberoi Realty cut to 'add' at Equirus Securities; Price target: Rs 1,074

• AIA Engineering raised to 'buy' at Equirus Securities; Price target: Rs 2,178

• AIA Engineering raised to 'buy' at IIFL; Price target: Rs 2,226

Source: Bloomberg

• Delhivery has filed its draft prospectus with SEBI for its IPO

• Up to Rs 5,000 crore to be raised through fresh issue of shares

• Existing shareholders to sell shares of up to Rs 2,460 crore

Source: Draft Red Herring Prospectus

Godrej Properties Ltd. reported net income for the September quarter that missed the average analyst estimate.

Second Quarter Results (Consolidated, QoQ)

• Net profit up 110% at Rs 35.72 crore vs Rs 17.01 crore (Bloomberg Consensus Estimate: Rs 63.25 crore)

• Revenue up 50.1% at Rs 129.32 crore vs Rs 86.16 crore (Bloomberg Estimate: Rs 135 crore)

• Total costs at Rs 231.83 crore vs Rs 196.48 crore

• Other income at Rs 204.90 crore vs Rs Rs 175.83 crore

Of the 20 analysts tracking the company, four maintained 'buy', five maintained 'hold' and 11 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 37.8%.

• Kotak Special Situations Fund, managed by Kotak Investment Advisors, will invest up to Rs 1,000 crore ($134 million) in Sify Infinit Spaces, a unit of Sify.

• Investment will be in the form of compulsorily convertible debentures

• Funds to be used to develop new data centres in five Indian cities

• Funds would also be invested in renewable energy requirements for SIS's data centers

Source: Press Release

• Most yields along the India sovereign yield curve fell, with 4-year bonds moving the most in Tuesday morning trading.

• The 3-year yield remained unchanged at 5.144%

• The 10-year yield fell 1.6bps to 6.371%

• The 18-year yield remained unchanged at 6.849%

• The 3-year-10-year yield spread was 122.7bps, vs previous close 124.3bps

Source: Bloomberg

Indiabulls Real Estate and and Phoenix Mills lead a rally in Indian realty stocks as demand for housing remains firm, highlighted by a higher number of deals taking place in the Mumbai metropolitan area during October.

Mumbai, which houses the country’s major stock exchanges and a number of corporate headquarters, reported sale of 8,500 properties during Oct. against 7,928 units a year ago, according to data released by the state’s registry office

Re-rating drivers of operational efficiency improvement, capacity addition and ESG efforts in place for NTPC

NTPC in talks with MSCI to improve ESG score through clarifications on data.

Expect NTPC's renewabe energy capacity to rise 3 times to 4.4 Giga Watt by 2023; Management has guided for 15 GW capacity by 2025, of which 7.8 GW is already in the bag

NTPC well-placed to benefit from additional incentive as power demand recovers.

Source: Jefferies Analyst Note, November 1

Shares of Bajaj Consumer Care shed over 3.5% in intraday trade, the most in nearly two weeks, to Rs 227 apiece, after the company's net income missed average analyst estimate in the September quarter

Bajaj Consumer Care Q2FY22 (Consolidated, YoY)

• Revenue down 5% at Rs 216.17 crore Vs Rs 226.91 crore (BBG Estimate: Rs 241 crore)

• Net profit down 18% at Rs 46.50 crore Vs Rs 56.92 crore (Rs 57.05 crore)

• Ebitda down 23% at Rs 48.05 crore Vs Rs 62.41 crore (Estimate: Rs 60.80 crore)

• Margin at 22.2% Vs 27.5%

Of the 16 analysts tracking the company, 14 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 49.5%

• Castrol India Ltd. cut to 'hold' at Edelweiss Capital; Price target: Rs 142

• PI Industries Ltd. cut to 'reduce' at Edelweiss Capital; Price target: Rs 2,718

• Escorts Ltd. cut to 'hold' at Canara Bank; Price target: Rs 1,584

Source: Bloomberg

• Shares of companies related to renewable energy and transition fuels rise after PM Narendra Modi pledged to make India reach net-zero by 2070 at the COP26 climate summit.

• In Focus: NTPC, Tata Power, Borosil Renewables

Shares of VRL Logistics Ltd. rose over 13% in intraday trade, the biggest gain in over five weeks, to Rs 429.2 apiece, after the company reported net income and revenue above average analyst estimate in the September quarter.

Second Quarter Results (Consolidated, YoY)

• Revenue up 45% at Rs 636.36 crore Vs Rs 439.25 crore (Bloomberg Consensus Estimate: Rs 555 crore

• Net profit up 60% at Rs 49.47 crore Vs Rs 30.88 crore (Bloomberg Consensus Estimate: Rs 27.7 crore)

• Ebitda up 30% at Rs 113.28 crore Vs Rs 86.91 crore

• Margin at 17.8% Vs 19.8%

Of the fourteen analysts tracking the company, thirteen maintained 'buy' and one maintained 'sell' recommendations. The overall consensus price of analysts tracking the company implied a downside of 2.7%.

Trading volume on the stock was 18.9 times the 30-day average volume, for this time of the day.

Indian equity benchmarks opened higher, aided by gains in banking, auto and consumer durables stocks, amid positive global cues, as U.S. equities closed at a record high ahead of key central bank decisions.

The S&P BSE Sensex rose 0.41% to 60,386.87. The NSE Nifty 50 advanced by a similar magnitude to 17,993.70. The 50-stock index reclaimed 18,000 mark in intraday trade after three sessions. ICICI Bank Ltd. contributed the most to the index gain, increasing 0.6%. Tata Motors Ltd. had the largest increase, rising 2.8%. In early trading, 34 of 50 shares rose, while 15 fell.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap adding over 0.6%. Barring S&P BSE Healthcare and S&P BSE Metal indexes, all the other 17 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Auto index rising nearly 1.5%.

The market breadth was skewed in favour of bulls. About 1,737 stocks advanced, 560 declined and 87 remained unchanged.

RattanIndia backed Revolt is all set to expand its pan India footprint. The electric motorcycles maker will open dealerships in five new cities (Kolkata, Coimbatore, Madurai, Vishakapatnam, Vijayawada). With this, Revolt will have 19 dealerships in 14 cities across nine states in the country.

Source: Exchange Filing

• Indian rupee traders will asses data that showed the nation’s trade deficit widened last month. Investors will await a Rs 20,000 crore ($2.7b) sale of Treasury bills. 

• USD/INR little changed at 74.8737 on Monday

• India’s merchandise trade deficit widened to $19.9 billion in October from $9.15 billion a year earlier, according to preliminary data released by the nation’s trade ministry on Monday

• 10-year yields little changed at 6.39%

• Global funds sell net Rs 202 crore of India stocks Monday: NSE

• They bought Rs 30 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 3 crore of corporate debt

• State-run banks bought Rs 1,380 crore of sovereign bonds on Nov. 1: CCIL data. Foreign banks bought Rs 595 crore of bonds

  Source: Bloomberg

• Voltas cut to 'neutral' at Credit Suisse; Price target: Rs 1,225

• Oberoi Realty cut to 'underperform' at Macquarie; Price target: Rs 690

• Exide Industries rated 'new add' at YES Research; Price target: Rs 192

Source: Bloomberg

Stocks linked to the wheat industry may move in Asia after benchmark wheat in Chicago climbed above $8 a bushel for the first time in almost nine years.

In Focus: Wheat flour manufacturer ITC, biscuit maker Britannia Industries and grain processor Kovilpatti Lakshmi Roller Flour Mills

• Aarti Industries cut to 'sell' at Spark Capital Advisors; Price target: Rs 790

• AIA Engineering cut to 'reduce' at Spark Capital Advisors; Price target: Rs 1,825

• Finolex Industries cut to 'hold' at Antique Stock Broking; Price target: Rs 200

Source: Bloomberg