Sensex, Nifty End Lower For Third Day As Earnings Off To Shaky Start
India’s equity benchmarks extended declines into a third day as most of the nation’s largest companies quarterly earnings posted so far have missed estimates.
The S&P BSE Sensex shed 0.68% to 52,198.51, and NSE Nifty 50 Index posted losses of similar magnitude to 15,632.10
The broader markets underperformed their larger peers. The S&P BSE MidCap shed 1.28% while the S&P BSE SmallCap declined by 1.44%. All the 19 sectoral indices declined with S&P BSE Realty and S&P BSE Metal shedding 2.4%.
The market breadth was skewed in favour of the bears. About 1,138 stocks advanced, 2,096 stocks declined and 109 remained unchanged on the BSE.
In the first quarter earnings season, six of the eight Nifty 50 members that have announced results so far fell short of analysts’ estimates.
Bajaj Finance Misses Analyst Estimates
Bajaj Finance Ltd. posted a worse-than-expected 4% rise in first-quarter profit on muted earnings from lending and higher provisioning as the consumer financier sought to balance asset quality risks and fresh lending amid India’s deadly second coronavirus wave.
The shadow lender’s consolidated net income was Rs 1,000 crore in the three months through June, compared with Rs 960 crore a year ago, according to a statement Tuesday. That lagged an average estimate of Rs 1,370 crore based on a Bloomberg survey of eight analysts.
While the recent coronavirus wave has hit Bajaj Finance’s lending due to the curbs on physical movement, analysts expect the financier to accelerate growth on the back of its digital infrastructure.
Tatva Chintan Pharma Chem IPO Subscription Status: Day 3
The IPO was subscribed 94.43 times as of 2:00 p.m. on July 20.
Institutional investors: 55.46 times
Non-institutional investors: 293.41 times
Retail investors: 31.42 times
Indraprastha Gas Set For Longest Loss Streak in 5.5 Years
Indraprastha Gas Ltd. is lower for the eighth straight day, on track for the longest losing streak since the period ended Nov. 9, 2015.
Indraprastha Gas has lost a total of 6.8% during the streak while today, the stock fell 1.9% to Rs 539.45. Stock advanced 29% in the past 52 weeks. The Sensex gained 40%.
The company trades at 26 times its estimated earnings per share for the coming year. Of the 36 analysts covering Indraprastha Gas, 27 recommend a 'buy', 4 'hold' and 5 suggest a 'sell'. The average of 12-month consensus price targets implies an upside of 8.4%, according to Bloomberg data.
Asian Paints Q1 Net Income Meets Estimates
Asian Paints reported net income for the first quarter that met the average analyst estimate.
Net income Rs 582.22 crore vs. Rs 814.71 crore QoQ, estimate Rs 580 crore
Revenue Rs 5,585.36 crore, -16% QoQ, estimate Rs 4,837 crore
EBITDA down 31% at Rs 913.56 crore Vs Rs 1,318.26 crore QoQ (Bloomberg estimate Rs 938.6 crore)
Margin at 16.4% Vs 19.8% (Bloomberg Est: 19.4%)