Sensex, Nifty Decline The Most In Two Weeks Dragged By Metals, Consumer Durables

Indian equity benchmarks closed lower for the second consecutive session and logged the most single-day decline in two weeks, dragged by metals and consumer durables stocks.

The S&P BSE Sensex index shed 0.74% to 61,259.96. The NSE Nifty 50 Index declined by similar magnitude to close at 18,266.60. Both the benchmarks slipped as much as 1% in intraday trade.

The broader indexes underperformed their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap declining 2%. Barring S&P BSE Telecom Index, all the other 18 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Consumer Durables index falling over 3.3%.

The market breadth was skewed in favour of bears. About 1,004 stocks advanced, 2,297 declined and 126 remained unchanged.

Mindtree Ltd. has been selected as a strategic partner by Western Asset to help drive digital innovations.

In an exchange filing, Mindtree said it will initially partner with the Western Asset team on their I.T. infrastructure and application portfolio.

Mindtree will also aid Wester Asset in accelerating its transition a platform-based operating model and automate its enterprise systems.

• Citigroup Inc. has set a bid deadline of next week for its Indian consumer assets.

• Citigroup's assets could be valued at $2 billion in a sale.

• Kotak Mahindra Bank is planning to bid for the assets.

• HDFC Bank and ICICI Bank are also weighing bids.

Source: People familiar with the matter

Spokesperson for Citigroup in Asia said "conversations with potential buyers continue with strong interest from a broad range of bidders, according to Bloomberg report.

Representatives for Kotak Mahindra and HDFC Bank declined to comment, while ICICI Bank did not respond to emails seeking comment

Ramkrishna Forgings Ltd. won an order worth Rs 52 crore in mining and earthmoving segment for the supply of engine components to one of the biggest engine component manufacturers in the world, the company said in an exchange filing.

Vodafone Idea Ltd. has approved the exercise of the option to defer the company's spectrum auction instalments for a period of four years, in accordance with the notification by Department of Telecommunications on October 14.

In an exchange filing, Vodafone Idea said that the company is considering other options offered in the telecom department notification.

Source: Exchange Filing

Shoppers Stop Ltd. is higher for the fifth straight day, extending the longest winning streak since the period ended August 26, 2020.

Shoppers Stop has gained a total of 4.8% during the streak while the Sensex increased 1.7%.

Of the 14 analysts tracking the company, nine maintained 'buy', four maintained 'hold' and one maintained 'sell' recommendations. The company was raised to 'add' from 'reduce' by IIFL with the price target increased to Rs 320 from Rs 235 earlier, with an implied return of 12.58%.

The overall consensus price of analysts tracked by Bloomberg implied an upside of 1.8%. Trading volume was 2.4 times the 30-day moving average, for this time of the day.

Fast-Moving Consumer Goods companies trade lower after earnings from Hindustan Unilever Ltd. and Nestle India Ltd. highlighted raw price price pressures and concerns over demand outlook.

Jubilant Foodworks Ltd. reported net income for the second quarter that beat the average analyst estimate.

Second quarter results (Consolidated, QoQ)

• Net income at Rs 119.82 crore vs estimate of Rs 112 crore (Bloomberg Consensus); Up 73% QoQ

• Revenue at Rs 1,116.19 crore vs estimate of Rs 1,110 crore; Up 25% QoQ

• Total costs at Rs 963.47 crore vs Rs 814.51 crore QoQ

• Other income at Rs 9.45 crore vs Rs 8.16 crore QoQ

Of the 32 analysts tracking the company, 22 maintained 'buy', six maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 12.8%.

• Jio added 6,94,754 wireless subscribers in August

• Bharti Airtel added 1,38,132 subscribers in August

• Vodafone Idea lost 8,33,549 subscribers in August

• 11.28 million subscribers submitted their requests for Mobile Number Portability (MNP).

• Number of active wireless subscribers in August at 99.17 crore

Source: TRAI Data

India's stock benchmarks declined after a volatile start, dragged by losses in metal, auto, power and consumer durables stocks.

The S&P BSE Sensex shed 0.54% to 61,380.03. The NSE Nifty 50 index also declined by similar magnitude to 18,293.80. Reliance Industries Ltd. contributed the most to the index decline, decreasing 1.1%. Hindalco Industries Ltd. had the largest drop, falling 3.4%. In midday trading, 36 of 50 shares fell, while 14 rose.

The broader indices underperformed their larger peers with S&P BSE MidCap little and S&P BSE SmallCap indexes declining over 1.6%. Barring S&P BSE Telecom, S&P BSE Bankex and S&P BSE Teck indexes, all the other 16 sectoral indexes compiled by the BSE Ltd. declined, with S&P BSE Consumer Durables index falling over 2.7%.

The market breadth was skewed in favour of bears. About 850 stocks advanced, 2,325 declined and 134 remained unchanged.

• NBCC (India) Ltd. has been awarded the work order for engagement as Project Management Consultant (PMC) for construction of Phase III of BPS Government Medical College in Sonepat, Haryana.

• The total cost of the project is Rs 285 crore approximately.

Source: Exchange Filing

• Indian rupee gained as foreign investors poured in funds ahead of a line-up of IPOs. Bonds slipped

• USD/INR climbed 0.3% to 75.1100 on Wednesday.

• 10-year yields rose 1bp to 6.40%, extending losses from a 6bps drop on Monday to an 18-month high.

Source: Bloomberg

Shares of Ipca Laboratories Ltd. reversed losses as much as 2.6% to gain nearly 2.5% in intraday trade to Rs 2,400 apiece after the company said it will consider sub-division of every 1 equity share of face value of Rs 2 each into 2 equity shares of face value of Re 1 each, in its board meeting on November 13.

In an exchange filing, the company said that it will also consider declaration of interim dividend and announce the financial results for the September quarter on the same day

The company has fixed November 23, 2021 as the 'Record Date' for the members entitlement of interim dividend for FY2021-22.

Of the 24 analysts tracking the company, 19 maintained 'buy' and five maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 10%.

• Hero MotoCorp rated new 'neutral' at JPMorgan as the brokerage firm initiates coverage; Price target: Rs 3,110.

• Eicher Motors rated new 'underweight' at JPMorgan as the brokerage firm initiates coverage; Price target: Rs 2,350

• Bajaj Auto rated new 'overweight' at JPMorgan as the brokerage firm initiates coverage; Price target: Rs 4,500

Source: Bloomberg

Shares of BL Kashyap & Sons Ltd. roseover 6% in intraday trade to Rs 29.5 apiece after the company bagged a new project worth Rs 62.15 crore for civil work of commercial space at Gurugram, Haryana.

In an exchange filing, the company said that the total order book during FY2021-22 stood at Rs 756.02 crore.

Shares of the construction and infrastructure company rose 165.7% in 2021 compared to 30.4% gains for Sensex.

• Shorter-term India sovereign securities declined in Wednesday morning trading.

• The 3-year yield rose 3.5bps to 5.065%

• The 10-year yield rose 0.9bps to 6.396%

• The 14-year yield rose 0.8bps to 6.877%

• The 3-year-10-year yield spread was 133.1bps, vs previous close 135.7bps

Honeywell Automation India Ltd. won the bid for the Rs 496.57 crore Bengaluru Safe City project under the Nirbhaya Fund announced by the Government of India.

In an exchange filing, the company said that the project duration included 2 years of Capex and 5 years of Opex.

The project aims to create secure environment for women in public places and to prevent all forms of crimes against women by providing safer urban infrastructure and efficient access to law enforcement agencies.

Over 7,000 types of cameras at over 3,000 locations across Bengaluru will be installed, along with the implementation of integrated command and control center.

Shares of Navin Fluorine International Ltd. shed 10% in intraday trade to Rs 3,476.45 apiece after the company reported a sequential decline in net profit and Ebitda in the quarter-ended September.

Navin Fluorine International Q2FY22 (Consolidated, YoY)

• Revenue up 6% at Rs 338.95 crore Vs Rs 318.92 crore

• Net profit down 2% at Rs 63.22 crore Vs Rs 64.42 crore

• Ebitda down 7% at Rs 84.17 crore Vs Rs 90.72 crore

• Margin 24.8% Vs 28.4%

• Declared an interim dividend of Rs 5 per share

• Appointed Basant Kumar Bansal as CFO from November 1

Of the 21 analysts tracking the company, eight maintained 'buy', eight maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 3.8%. Trading volume on the stock was 10.5 times the 30-day average volume for this time of the day.

• Foxconn Technology Group plans to set up electric vehicle production facilities in Europe, India and South America by 2024

• Company will work indirectly with at least one German carmarket in Europe

• Foxconn may also consider a site in Mexico.

• China power crunch to have little impact on company

Young Liu, Chairman, Foxconn's Hon Hai

Source: Bloomberg

Shares of Mastek Ltd. shed over 15.6% to Rs 2,900 apiece after the company reported its September quarter earnings

Second Quarter Earnings (Consolidated)

• Net income at Rs 81.53 crore vs Rs 80.21 crore QoQ

• Revenue at Rs 533.93 crore vs Rs 516.47 crore QoQ

• Total costs at Rs 433.39 crore vs Rs 415.14 crore QoQ

• Other income at Rs 7.71 crore vs Rs 4.70 crore QoQ

Of the four analysts tracking the company, three maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.6%.

India's stock benchmarks opened little changed, as gains in information technology stocks were offset by losses in metal and consumer discretionary stocks. Sentiment remained positive globally as rally in U.S. markets triggered by earnings spilled over into Asian markets.

The S&P BSE Sensex was little changed at 61,628.14. The NSE Nifty 50 was also largely unchanged at 18,381.05.

The broader indexes underperformed their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap falling 1%. All the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Metal index shedding nearly 3%.

The market breadth was skewed in favour of bears. About 611 stocks advanced, 1,822 declined and 88 remained unchanged.

• Shares of India’s fast-moving consumer goods companies may move as analysts reacted to quarterly earnings from Hindustan Unilever and Nestle India that highlighted persistent pressure from input prices and worries over the demand outlook. 

• In Focus: ITC, Tata Consumer, Britannia Industries, Godrej Consumer Products, Dabur India, Marico, Colgate-Palmolive India, Emami, Bajaj Consumer

• NTPC Ltd. 4.38 million shares change hands in a pre-market trade.

• Reliance Industries Ltd. has 2.63 million shares change hands in a pre-market trade

• Bharat Electronics Ltd. has 1.13 million shares change hands in a pre-market trade.

• ICICI Bank Ltd. has 4.73 million shares change hands in a pre-market trade.

• Infosys Ltd. has 3.14 million shares change hands in a pre-market trade.

• Bharti Airtel Ltd. has 2.28 million shares change hands in a pre-market trade.

• Wipro Ltd. has 1.26 million shares change hands in a pre-market trade.

• State Bank of India Ltd. has 1.63 million shares change hands in a pre-market trade.

• ONGC has 2.3 million shares change hands in a pre-market trade

• ITC has 2.66 million shares change hands in a pre-market trade

• Details of buyers and sellers are not immediately known

Source: Bloomberg

• Indian government bonds may extend Monday’s losses amid a rise in Treasury yields. Traders are also awaiting a Rs 17,000 crore Treasury bill auction. 

• 10-year yields rose 6bps to 6.39% on Monday, an 18-month high. Indian bond and FX markets were closed on Tuesday for a holiday

• USD/INR climbed 0.1% to 75.3475 on Monday

• Global funds sell net Rs 506 crore of India stocks Tuesday: NSE

• Global funds buy net Rs 512 crore of India stocks Monday: NSE

• They withdrew Rs 50 crore of corporate debt

• State-run banks bought Rs 5,540 crore of sovereign bonds on Oct. 18: CCIL data. Foreign banks sold Rs 3,360 crore of bonds

Source: Bloomberg

Coal producers in Asia saw a sharp drop in share prices Wednesday after China’s top economic planner said it is studying ways to intervene in the coal market as the government tries to rein in rising prices and curtail shortfalls.

In Focus: Coal India, Adani Enterprises

• ICICI Prudential cut to 'reduce' at Spark Capital Advisors; Price target: Rs 580

• VRL Logistics rated new 'buy' at Motilal Oswal Securities; Price target: Rs 460

• ICICI Securities cut to 'reduce' at Spark Capital Advisors; Price target: Rs 735

• Hindustan Unilever raised to 'buy' at IDBI Capital Market; Price target: Rs 3,129

• L&T Technology cut to 'reduce' at Equirus Securities; Price target: Rs 4,685

NTPC Ltd. is looking to acquire around 5% stake in Power Exchange India Ltd., Mint reported, citing people aware of the development.

• NTPC's acquisition plan comes when electricity prices at Indian power exchanges have risen due to depletion of coal stocks at power plants and growing demand for power.

• Power Exchange India Ltd. was founded by National Stock Exchange of India Ltd. and National Commodity & Derivatives Exchange Ltd.