Sensex, Nifty Fall For Third Session Dragged By Banking, Healthcare, Realty Stocks

India's stock benchmarks declined for the third session in a row, dragged by banking, healthcare and realty stocks, as sentiment was sapped following U.S. inflation numbers, which rose to a multi-decade high, prompting concerns over rapid tightening of monetary policy.

The S&P BSE Sensex fell 0.71% to 59,919.69. The NSE Nifty 50 also declined by similar magnitude to 17,873.60. Housing Development Finance Corp. contributed the most to the index decline, decreasing 1.3%. Tech Mahindra Ltd. had the largest drop, falling 2.9%. Today, 41 of 50 shares fell, while 9 rose.

The broader indexes almost mirrored their larger peers with the S&P BSE MidCap index and the S&P BSE SmallCap shedding over 0.5%. Fifteen of the19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty index falling 2.5%.

The market breadth was skewed in the favour of bears. About 1,440 stocks advanced, 1,850 declined and 155 remained unchanged.

"Domestic equity witnessed heavy sell-off today led by heavy selling in heavyweight financials. Notably, hotter than expected October CPI print in USA raised apprehensions among investors pertaining to prevailing soft monetary policy stance of global central bankers", Binod Modi, Head Strategy at Reliance Securities wrote in a note. He also added that "market may consolidate at these levels in the near term and investors will track pricing power of the industries."

Shares of Piramal Enterprises Ltd. shed over 5% in intraday trade to Rs 2,678.3 apiece after the company reported sequential decline in net profit in the September quarter.

September Quarter Numbers (Consolidated, QoQ)

• Net profit down 22% at Rs 419.2 crore Vs net loss of Rs 539.4 crore

• Revenue up 6.77% at Rs 3,105.52 crore vs Rs 2,908.68 crore

• Total costs at Rs 2,667.92 crore vs Rs 2,492.97 crore

• Other income at Rs 128.07 crore vs Rs 102.92 crore

Of the six analysts tracking the company, five maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.7%

September Quarter Results (Consolidated, QoQ)

• Net profit at Rs 92.2 crore vs Rs 29.90 crore

• Revenue at Rs 2,113.99 crore vs Rs 1,602.55 crore

• Total costs at Rs 2,000.56 crore vs Rs 1,564.87 crore

• Other income at Rs 21.06 crore vs Rs 6.14 crore

Of the 22 analysts tracking the company, 15 maintained 'buy', five maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 13.3%

Shares of Hindustan Aeronautics Ltd. rose nearly 3% to Rs 1,414.55 apiece after the company reported sequential growth in net profit and revenue in September quarter

Second Quarter Results (Consolidated, QoQ)

• Net profit at Rs 846.74 crore vs Rs 194.68 crore

• Revenue at Rs 5,551.16 crore vs Rs 1,615.83 crore

• Total costs at Rs 4,555.18 crore vs Rs 1,499.53 crore

• Other income at Rs 137.38 crore vs Rs 150.13 crore

All the six analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 44%.

September Quarter Results (Consolidated, QoQ)

• Net profit at Rs 478.89 crore vs Rs 413.66 crore (Bloomberg Consensus Estimate: Rs 492 crore)

• Revenue at Rs 3,163.65 crore vs Rs 2,894.45 crore (Estimate: Rs 3,184 crore)

• Total costs at Rs 2,579.45 crore vs Rs 2,372.65 crore

• Other income at Rs 22.64 crore vs Rs 20.90 crore

Shares of Natco Pharma Ltd. shed nearly 6% to Rs 806.15 apiece after the company reported sequential decline in net profit and revenue in the September quarter.

Second Quarter Results (Consolidated, QoQ)

• Net profit down 13.2% at Rs 65.1 crore vs Rs 75 crore (Bloomberg consensus estimate: Rs 88.3 crore)

• Revenue down 8.07% Rs 377.2 crore vs Rs 410.3 crore (Estimate: Rs 489 crore)

• Total costs at Rs 345.4 crore vs Rs 336.3 crore

• Other income at Rs 38 crore vs Rs 17 crore

Of the 15 analysts tracking the company, seven maintained 'buy', five maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 32.1%

September Quarter Results (Consolidated, QoQ)

• Net profit up 46.58% at Rs 160.49 crore vs Rs 109.49 crore (Bloomberg consensus estimate: Rs 118 crore)

• Revenue up 116.14% at Rs 1,084.01 crore vs Rs 501.54 crore (estimate: Rs 867 crore)

• Total costs at Rs 874.55 crore vs Rs 490.58 crore

• Other income at Rs 5.36 crore vs Rs 3.56 crore

Of the 25 analysts tracking the company, nine maintained 'buy', eight maintained 'hold' and eight maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 20.9%.

• Shares of MOIL Ltd. rose for the eighth straight day, on track for the longest winning streak since the period ended Oct. 15, 2015.

• MOIL has gained a total of 13% during the streak while the S&P BSE Sensex Index increased 0.9%.

• Trading volume on the stock was 4.9 times the 30-day average volume, for this time of the day.

• Shares of MOIL crossed above 100-day moving average.

Shares of Pidilite Industries Ltd. rose over 4.5%, the most intraday gains in over five months, to Rs 2,473.2 apiece after the company reported net income above average analyst estimate in the September quarter, post market hours Wednesday

Second Quarter Results (Consolidated, QoQ)

• Revenue at Rs 2,626.35 crore Vs Rs 1,936.79 crore (Bloomberg Consensus Estimate: Rs 2,318 crore)

• Net profit at Rs 375.53 crore Vs Rs 217.64 crore (Bloomberg Consensus Estimate: Rs 350 crore)

• Total costs at Rs 2,149.45 crore vs Rs 1,655.45 crore

• Other income at Rs 13.9 crore vs Rs 6.12 crore

• CFO Pradip Menon has resigned from the post. He will be relieved from the duty w.e.f. close of business hours on December 20, 2021.

Of the 19 analysts tracking the company, four maintained 'buy', six maintained 'hold' and nine maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 13.3%

Trading volume on the stock was 7.2 times the 30-day average volume, for this time of the day.

Motilal Oswal

• Maintains 'neutral' with the target unchanged at Rs 2,300; implied return of -6.61%

• Overall gross margin contracted on account of sharp rise and volatility in input costs.

• Calibrated pricing actions and focus on operational efficiencies helped the company maintain EBITDA margin.

• Domestic subsidiaries in C&B business posted double-digit growth due to rise in sales in premium products.

• Subsidiaries in B2B business have improved sequentially due to recovery in construction-related activities.

Dolat Capital

• Maintains 'accumulate' with the target price unchanged at Rs 2,280

• Results beat estimates on all front, due to strong demand environment.

• Domestic business growth driven by volume growth in consumer bazaar/B2B segment.

• Sharp rise in input cost led to margin contraction, which was however partially offset by reduction in employee cost.

• To revisit estimate post conference call on Thursday

Second Quarter Results (Standalone, QoQ)

• Net profit up 70.29% at Rs 235 crore vs Rs 138 crore (Bloomberg Consensus Estimate: Rs 253 crore)

• Revenue up 8.28% at Rs 2,091 crore vs Rs 1,931 crore

• Total costs at Rs 1,912 crore vs Rs 1,865 crore

• Other income at Rs 32 crore vs Rs 14 crore

Source: Exchange Filing

India's stock benchmarks declined, dragged by banking, information technology and realty stocks, amid weak global cues.

The S&P BSE Sensex fell 0.81% to 59,861.67. The NSE Nifty 50 also declined by similar magnitude to 17,860.30. Housing Development Finance Corp. contributed the most to the index decline, decreasing 1.7%. Oil & Natural Gas Corp. had the largest drop, falling 2.7%. In midday trading, 45 of 50 shares fell, while 5 rose.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index shedding 0.8% and the S&P BSE SmallCap slipping 0.5%. Barring S&P BSE Consumer Durables and S&P BSE Metal indexes, all the other 17 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty index falling 2.70%.

The market breadth was skewed in the favour of bears. About 1,379 stocks advanced, 1,780 declined and 164 remained unchanged

Move as part of demerger under SCI's strategic disinvestment process undertaken by the government.

Source: Exchange Filing

Shares of Metropolis Healthcare Ltd. shed nearly 5% to Rs 3,003.20 apiece after the company reported sequential decline in net profit and revenue in the September quarter, post market hours Wednesday

Second Quarters Results (Consolidated, QoQ)

• Net profit at Rs 58.40 crore vs Rs 74.92 crore

• Revenue at Rs 302.62 crore vs Rs 326.76 crore

• Total costs at Rs 230.48 crore vs Rs 243.34 crore

• Other income at Rs 5.57 crore vs Rs 3.76 crore

Of the 14 analysts tracking the company, eight maintained 'buy', two maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 6.7%

About 1,415 stocks advanced, 1,709 declined and 149 remained unchanged, as of 12:00 p.m.

Source: BSE

Shares of CRISIL Ltd. rose over 12.3% to Rs 3,225 apiece after reporting sequential growth in net profit and revenue in September quarter, post market hours Wednesday

Second Quarter Results (Consolidated, QoQ)

• Net profit at Rs 112.86 crore vs Rs 100.80 crore

• Revenue at Rs 570.96 crore vs Rs 528.51 crore

• Total costs at Rs 452.57 crore vs Rs 419.06 crore

• Other income at Rs 32.84 crore vs Rs 21.97 crore

Of the five analysts tracking the company, three maintained 'buy' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 1%.

Trading volume on the stock was 37 times the 30-day average volume, for this time of the day.

The relative strength index on the stock was 70, suggesting it may be overbought.

NTPC Ltd. has informed that the Unit-1 (660 Mega Wass) of Barh Super Thermal Power Station Stage-I is open for commercial operations from Friday.

With this, the commercial capacity of NTPC and NTPC group will become 54,232.5 Mega Watt and 67,657.5 Mega Watt, respectively.

Source: Exchange Filing.

• Indian bonds slip as RBI Governor Shaktikanta Das flags concerns on core inflation, adding to the growing fears on rising global prices. The rupee is weaker in line with Asian peers.

• 10-year yields up 3bps to 6.37%,  adding to 4bps rise on Wednesday

• 5-year yield also up 3bps to 5.72%

• USD/INR rose 0.2% to 74.5250

Source: Bloomberg

J Kumar Infraprojects Ltd. received Letter of Acceptance from Maharashtra Metro Rail Corporation Ltd. (Navi Mumbai Metro Rail Project) for anorder worth Rs 163.22 crore).

The order pertained to the design and construction of balance works of concrete and fabricated steel structures, architectural works, plumbing and sewerage of six elevated metro stations at Kharghar Villar, Kendriya Vihar, Utsav Chowk, Belpada, RBI Colony and Belapur Terminal station in Navi Mumbai, the company said in an exchange filing.

• Yields rose across the India sovereign yield curve in Thursday morning trading.

• The 3-year yield rose 0.7bps to 5.082%

• The 10-year yield rose 3.2bps to 6.368%

• The 20-year yield remained unchanged at 6.892%

• The 3-year-10-year yield spread was 128.6bps, vs previous close 126.1bps

Source: Bloomberg

Shares of Alembic Pharmaceuticals Ltd. rose nearly 5% to Rs 756 apiece after reporting net income that matched analyst estimate, for the September quarter. Alembic Pharma also informed that U.S. FDA issued a Form 483 with 10 observation after conducting an inspect at the company's injection facility in Karkhadi from October 28 and November 10. The company stated that none of the observations are related to data integrity and is preparing its response to the U.S. FDA.

Second Quarter Results (Consolidated, QoQ)

• Revenue down 2.5% at Rs 1,292.3 crore Vs Rs 1,326 crore (BBG estimate : Rs 1,309.8 crore)

• Net profit up 2.9% to Rs 169.3 crore from Rs 164.5 crore (BBG estimate : Rs 169.5 crore Profit)

• EBITDA at Rs 257.2 crore Vs Rs 235.9 crore, up 9% (BBG estimate : Rs 251.4 crore)

• Margins at 19.9% Vs 17.8% (BBG estimate : 19.2%)

• EPS at Rs 8.61 per share Vs Rs 8.37 (BBG estimate : Rs 8.65)

Of the 18 analysts tracking the company, seven maintained 'buy', seven maintained 'hold' and four maintained 'hold' recommendations.

• V-Mart Retail cut to 'accumulate' from 'buy' at Elara Securities; price target: Rs 4,565

• Firstsource Solutions raised to 'buy' from 'hold' at Emkay Global; price target: Rs 220

Source: Bloomberg

Shares of Affle India Ltd. rose nearly 9%, the most intraday gains in over nine months, to Rs 1,180.95 apiece after the company reported net income above average analyst estimate in the September quarter, post market hours Wednesday.

Second Quarter Results (Consolidated, QoQ)

• Revenue at Rs 274.70 crore Vs Rs 152.47 crore (Bloomberg Consensus Estimate: Rs 226 crore)

• Net profit up 77% at Rs 47.81 crore Vs Rs 35.89 crore (Estimate: Rs 33.95 crore)

• Total costs at Rs 232.90 crore vs Rs 124.01 crore

• Other income at Rs 15.23 crore vs Rs 12.69 crore

Of the seven analysts tracking the company, six maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9%.

Dolat Capital

• Maintains 'buy' with the target kept unchanged at Rs 1,164

• Robust performance organically, Jamp acquisition integration had a positive impact on international business

• India business reported commendable growth.

• Believe Affle offers a unique interplay of 'digital + mobility + analytics' theme with the possibility of multi-year high growth.

• Believe that the company can sustain current growth momentum.

Shares of Thermax Ltd. rose nearly 10% in intraday trade, the most in over seven months, to Rs 1,499 apiece after the company reported sequential growth in net profit and revenue in the second quarter, post market hours Wednesday.

September Quarter Results (Consolidated, QoQ)

• Revenue up 39.62% at Rs 1,469.32 crore Vs Rs 1,052.36 crore

• Net profit up 81.4% at Rs 87.92 crore Vs Rs 48.47 crore

• Total costs at Rs 1,391.78 crore vs Rs 1,021.49 crore

• Other income at Rs 36.75 crore vs Rs 25.39 crore

Of the 28 analysts tracking the company, four maintained 'buy', eight maintained 'hold' and 16 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 9.6%.

Trading volume on the stock was 129.4 times the 30-day average volume, for this time of the day.

Motilal Oswal

• Maintains 'neutral' with the target price kept unchanged at Rs 1,385; an implied return of -2.38%.

• Revenue was in-line with the estimate while gross margin remained stable.

• Order inflows remained strong and order book was robust at Rs 6,520 crore.

Dolat Capital

• Maintains 'sell' with the target price kept unchanged at Rs 1,205; an implied return of -11.45%

• Robust revenue growth aided by performance in energy, environment and chemical segments.

• Growth in net profit driven by higher-than-estimated other income.

• HDFC Bank has 1 million shares change hand in a bunched trade

• Details of buyers and sellers are not immediately known

Source: Bloomberg

India's stock benchmarks declined, dragged by losses in banking, oil and gas and information technology stocks, amid mixed cues as the hottest U.S. inflation print in three decades sapped sentiment.

The S&P BSE Sensex fell 0.35% to 60,141.66. The NSE Nifty 50 also declined by similar magnitude to 17,950.15. Housing Development Finance Corp. contributed the most to the index decline and had the largest drop, decreasing 1.2%. In early trading, 38 of 50 shares fell, while 12 rose.

The broader indexes outperformed their broader peers with the S&P BSE MidCap index little changed and the S&P BSE SmallCap gaining 0.2%. Eleven of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Consumer Durables index adding 1%.

The market breadth was skewed in favour of the bulls. About 1,498 stocks advanced, 873 declined and 111 remained unchanged.

• NIIT Ltd. raised to 'buy' from 'accumulate' at Dolat Capital; price target: Rs 420

• Zomato raised to 'overweight' from 'equal-weight' at Morgan Stanley; price target: Rs 185

• Indraprastha Gas raised to 'outperform' from 'neutral' at Credit Suisse; price target: Rs 640

Source: Bloomberg

Indian bond traders will weigh the central bank governor’s comment on inflation. A sharp rise in U.S. yields may weigh on bonds while the rupee may weaken in line with Asian peers. 

• Core inflation remains elevated and a policy challenge, RBI Governor Shaktikanta Das said on Wednesday in an interview with a newspaper.

• 10-year yields rose 4bps to 6.34% on Wednesday.

• USD/INR rose 0.5% to 74.3837 on Wednesday, the biggest rise in a month.

• Global funds sell net Rs 470 crore of India stocks Wednesday: NSE

• They sold Rs 25 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 200 crore of corporate debt.

• State-run banks sold Rs 3,460 crore of sovereign bonds on Nov. 9: CCIL data. Foreign banks bought Rs 5,070 crore of bonds.

Source: Bloomberg

India’s trade ministry has prepared a list of 102 products, including gold, crude palm oil and personal computers, where domestic capacity should be boosted with the goal of reducing imports, PTI reports citing an unnamed official.

List has been circulated to other ministries.

Products mentioned also include coking coal, urea digital cameras, refined copper, sunflower seed oil, and phosphoric acid.