After Early Resilience To Moody’s Jolt, Market Selloff Erases Rs 1.5-Lakh-Crore Investor Wealth

Indian equity benchmarks ended lower, wiping off more than Rs 1.5 lakh crore of investor wealth.

That comes after S&P BSE Sensex fell 0.8 percent to end at 40,323.61 and the NSE Nifty 50 fell 0.86 percent to 11,908.15. The 31-stock index halted its record closing spree and the 50-share gauge clocked its steepest decline in more than a month. The broader markets represented by the NSE Nifty 500 Index fell 0.83 percent.

The benchmark indices had opened lower today after Moody’s cuts India’s credit ratings outlook was cut to negative from stable, citing the government's struggle to lift economic growth and narrow the budget deficit.

“The decision reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses than Moody’s had previously estimated, leading to a gradual rise in the debt burden from already high levels,” Moody's Investors Service said.

The market breadth was tilted in favour of sellers. About 1,085 stocks declined and 689 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Pharma Index’s 2.2 percent gain. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 1.66 percent.

Solar Industries

• Stock fell as much as 2.8 percent to Rs 1,030.
• Trading volume was more than 16 times its 20-day average.

Bharat Rasayan

• Stock rose as much as 13.5 percent to Rs 6,775.
• Trading volume was more than 13 times its 20-day average.

Galaxy Surfactants

• Stock rose as much as 11.3 percent to Rs 1,648.
• Trading volume was almost 12 times its 20-day average.

Allahabad Bank

• Stock fell as much as 11.1 percent to Rs 24.
• Trading volume was almost six times its 20-day average.

Indian equity benchmarks extended declines to trade at day’s low.

The S&P BSE Sensex fell 0.68 percent to 40,381 as of 3 p.m. and the NSE Nifty 50 fell 0.72 percent to 11,925. The broader markets represented by the NSE Nifty 500 Index fell 0.7 percent.

Raymond

• Stock rose as much as 20 percent to Rs 808.
• The company spun off its branded lifestyle business into a separate entity as part of a restructuring plan. Raymond’s lifestyle business, which comprises branded textiles, branded apparel and garments, would be separately listed on the bourses after the demerger, the textile maker said in an exchange filing.

Indraprastha Gas

• Stock rose as much as 8.6 percent to Rs 427.
• Revenue rose 19.4 percent to Rs 1692 crore.
• Net profit rose 2 times to Rs 381 crore.
• Ebitda rose 27.5 percent to Rs 393 crore.
• Margin stood at 23.2 percent versus 21.7 percent.
• Deferred tax gain of Rs 69.5 crore in current quarter.

RBL Bank

• Stock rose as much as 7.9 percent to Rs 332.75.
• Fresh longs seen with high OI 23 percent
• Trading volume was double its 20-day average.

HDFC AMC

• Stock rose as much as 7.7 percent to Rs 3,248.
• The stock was included in MSCI Global Standard Index.
• changes will be effective from the close of Nov. 26.

About 20 lakh shares of Cipla changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Bharat Forge (Q2, YoY)

• Stock fell as much as 6.8 percent to Rs 473.45.
• Revenue down 17 percent to Rs 2,155.2 crore.
• Net profit down 18.75 percent to Rs 205.4 crore.
• Ebitda down 35.5 to Rs 333.8 crore.
• Margin at 15.5 percent versus 19.9 percent
• Deferred tax gain of Rs 54.5 crore in the current quarter.

MRF (Q2, YoY)

• Stock fell as much as 2.1 percent to Rs 64,860.
• Revenue up 1.5 percent to Rs 4,007.6 crore.
• Net profit down 17.7 percent to Rs 229 crore.
• Ebitda down 1.7 percent to Rs 556.2 crore.
• Margin at 13.9 percent versus 14.3 percent

The NSE Nifty Bank Index extended gains for the third consecutive trading session and rose as much as 391 points or 1.28 percent to 31,024, the highest since July 5.

Indian equity benchmarks fluctuated between gains and losses

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,628 and 12,002 respectively as of 12:55 p.m. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

The benchmark indices declined in the opening trade after Moody’s cuts India’s credit ratings outlook was cut to negative from stable, citing the government's struggle to lift economic growth and narrow the budget deficit.

“The decision reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses than Moody’s had previously estimated, leading to a gradual rise in the debt burden from already high levels,” Moody's Investors Service said.

Shares of NCC halted their two-day losing streak. The stock rose as much as 9.5 percent to Rs 50.65.

Trading volume was more than two times its 20-day average, Bloomberg data showed. Of the shares traded, 52 percent were at the ask price and 44 percent were at the bid.

Indian equity benchmarks continued to trade lower.

The S&P BSE Sensex fell 0.36 percent to 40,508 as of noon and the NSE Nifty 50 fell 0.39 percent to 11,964. The broader markets represented by the NSE Nifty 500 Index fell 0.25 percent.

About 15 lakh shares of Hindalco Industries changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Pharma Index’s 1.3 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 1.6 percent.

Nifty’s 12,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Nov. 14, fell 29.4 percent to Rs 64.90. Over 12.12 lakh shares were added to the open interest which stood at over 26.09 lakh shares.

Shares of Yes Bank swung form a fall of as much as 3.24 percent and rose as much as 4.74 percent to Rs 69.60.

About 18.7 lakh shares of the Mumbai-based lender changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

BPCL (Q2, QoQ)

• Stock fell as much as 1.7 percent to Rs 504.45.
• Revenue fell 15.7 percent to Rs 64,340.7 crore.
• Net profit rose 58.9 percent to Rs 1,708.5 crore.
• Ebitda rose 9 percent to Rs 2,374.9 crore versus Rs 2,179.8 crore.
• Margin stood at 3.7 percent versus 2.9 percent.
• Tax reversal of Rs 580.3 crore in the current quarter.

Power Grid Corporation (Q2, YoY)

• Stock fell as much as 0.93 percent to Rs 192.40.
• Revenue rose 4.8 percent to Rs 8,685 crore.
• Net profit rose 9.4 percent to Rs 2,527.4 crore.
• Ebitda rose 8.3 percent to Rs 7,556.9 crore.
• Margin stood at 87 percent versus 84.2 percent.

Indraprastha Gas (Q2, YoY)

• Stock rose as much as 5.8 percent to Rs 415.70.
• Revenue rose 19.4 percent to Rs 1692 crore.
• Net profit rose 2 times to Rs 381 crore.
• Ebitda rose 27.5 percent to Rs 393 crore.
• Margin stood at 23.2 percent versus 21.7 percent.
• Deferred Tax Gain of Rs 69.5 crore in current quarter.

DLF (Q2, YoY)

• Stock rose as much as 6.2 percent to Rs 204.40.
• Revenue fell 19.8 percent to Rs 1,715.5 crore.
• Net profit rose 19.1 percent to Rs 445.9 crore.
• Ebitda fell 46.9 percent to Rs 350.3 crore.
• Margin stood at 20.4 percent versus 30.8 percent.
• Exceptional gain of Rs 143.6 crore in current quarter.
• Other expenses rose 91 percent to Rs 394.2 crore.

Wockhardt (Q2, YoY)

• Stock fell as much as 5.9 percent to Rs 283.30.
• Revenue fell 28.7 percent to Rs 802.2 crore.
• Net loss to Rs 82.8 crore.
• Ebitda fell 16.9 percent to Rs 43.3 crore.
• Margin stood at 5.4 percent versus 4.7 percent.

GlaxoSmithKline Consumer Healthcare (Q2, YoY)

• Stock fell as much as 1.7 percent to Rs 9,081.35.
• Revenue rose 5.7 percent to Rs 1,345.1 crore.
• Net profit rose 25.3 percent to Rs 345.3 crore.
• Ebitda rose 11.9 percent to Rs 395.8 crore.
• Margin stood at 29.4 percent versus 27.8 percent.

United Breweries (Q2, YoY)

• Stock rose as much as 4.5 percent to Rs 1,292.
• Revenue rose 3.5 percent to Rs 1,579.6 crore.
• Net profit fell 29.6 percent to Rs 114.9 crore.
• Ebitda fell 39.3 percent to Rs 192.3 crore.
• Margin stood at 12.2 percent versus 20.8 percent.
• RM as percent of Sales at 47.7 percent.
• Other expenses rose 18 percent to Rs 508.9 crore.

Trent (Q2, YoY)

• Stock fell as much as 1.6 percent toRs 532.50.
• Revenue rose 33.4 percent to Rs 854.9 crore.
• Net profit fell 12 percent to Rs 18.6 crore.
• Ebitda rose 2.2 times to Rs 129.4 crore.
• Margin stood at 15.1 percent versus 9 percent.
• Depreciation rose 6 times; Finance Cost rose 5.2 times.

Amber Enterprises (Q2, YoY)

• Stock rose as much as 2.6 percent to Rs 1,025.35.
• Revenue rose 89 percent to Rs 623.2 crore.
• Net profit at Rs 11.8 crore.
• Ebitda rose 2.7 times to Rs 36.6 crore.
• Margin stood at 5.9 percent versus 4.2 percent.

Thyrocare Technologies (Q2, YoY)

• Stock rose as much as 8.2 percent to Rs 604.50.
• Revenue rose 11.8 percent to Rs 116.2 crore.
• Net profit rose 38.7 percent to Rs 35.1 crore.
• Ebitda rose 20.9 percent to Rs 52.1 crore.
• Margin stood at 44.8 percent versus 41.5 percent.
• Samples processed rose 5 percent to 0.52 crore.
• Investigations performed rose 11 percent to 2.99 crore.

Shares of Reliance Home Finance extended gains for the sixteenth consecutive trading session, the longest stretch of gains on record. The stock hit an upper circuit of 5 percent at Rs 6.30.

The National Housing Bank has imposed a penalty of Rs 45,000 on the company for contravention of NHB Directions.

The Relative Strength Index was above 70, indicating that the stock may be overbought, according to Bloomberg data. The stock advanced 87 percent in the past 12 months compared to a 15 percent gain in the Sensex.

Shares of Mindtree fell as much as 1.2 percent to Rs 698.70.

The company’s Chief Financial Officer Pradip Kumar Menon has resigned, adding to the exodus of its top management since a hostile takeover by Larsen & Toubro Ltd.

Menon would be pursuing career opportunities outside the company and would be relieved from services on Nov. 15, the company said in an exchange filing.

The stock declined for fourth day in five trading sessions. The scrip traded at 19 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Raymond rose as much as 12 percent, the most in a month, to Rs 754.20, the highest since July July 5.

The company spun off its branded lifestyle business into a separate entity as part of a restructuring plan. Raymond’s lifestyle business, which comprises branded textiles, branded apparel and garments, would be separately listed on the bourses after the demerger, the textile maker said in an exchange filing.

Besides, the company also plans to “fully reduce debt” by issuing equity to JK Investo Trade (India) Ltd., its associate firm.

Raymond announced the allotment of equity shares and compulsorily convertible preference shares to JKIT at a price of Rs 674 per share aggregating to rupees Rs 350 crore.

As a result of equity issuance of Rs 225 crore and compulsorily convertible preference share issue of Rs 125 crore, JKIT’s stake would rise to 12.01 percent from the present 4.57 percent assuming full conversion into equity, the filing added.

Indian equity benchmarks opened lower today.

The S&P BSE Sensex fell 0.29 percent to 40,540 and the NSE Nifty 50 fell 0.32 percent to 11,973. The broader markets represented by the NSE Nifty 500 Index fell 0.23 percent.

The market breadth was tilted in favour of sellers. About 786 stocks declined and 633 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 1 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 1.6 percent.

Index Futures

• Nifty November futures closed at 12,047.9, premium of 35.9 points versus 42 points.
• Nifty November Futures open interest up 3 percent, adds 4.4 lakh shares in open interest.
• Nifty Bank November futures closed at 30,664.3, premium of 31.3 points versus 73 points.
• Nifty Bank November futures series open interest up 6 percent, adds 8,38,000 shares in open interest.

Options

• Nifty PCR at 1.46 versus 1.44 (across all series).

Nifty Weekly Expiry: Nov. 14

• Max open interest on call side at 12,000 (13.9 lakh shares).
• Max open interest on put side at 11,900 (14.6 lakh shares).
• open interest addition seen at 12,000P (+8.9 lakh shares), 11,900P (+8.7 lakh shares), 12,000C (+8.7 lakh shares).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (17.9 lakh shares).
• Max open interest on put side at 11,600 (19.4 lakh shares).

• LG Balakrishnan promoter and director Rajvirdhan sold 41,000 shares on Nov. 5
• Cyient promoters acquired 20,000 shares on Nov. 7
• Ultratech Cement promoter Aditya Marketing & Manufacturing sold 2.7 lakh shares on Nov. 4
• Uniply Industries promoters sold 2.1 lakh shares from Aug.t 22-Sept. 27

• Cipla to meet WhiteOak Capital, CLSA and other investors from Nov. 8-Dec. 9

Indian equity benchmarks are set for a tepid start.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,630.56 and 11,987.10 respectively during the pre-market trade.

• Uniply Industries to move into ASM Framework
• Vishwaraj Sugar Industries, Indiabulls Real Estate, Alok Industries to move into short term ASM Framework
• R.P.P. Infra Projects to move out of short term ASM Framework

Earnings Reaction To Watch

BPCL (Q2, QoQ)

• Revenue fell 15.7 percent to Rs 64,340.7 crore.
• Net profit rose 58.9 percent to Rs 1,708.5 crore.
• Ebitda rose 9 percent to Rs 2,374.9 crore versus Rs 2,179.8 crore.
• Margin stood at 3.7 percent versus 2.9 percent.
• Tax reversal of Rs 580.3 crore in the current quarter.

Power Grid Corporation (Q2, YoY)

• Revenue rose 4.8 percent to Rs 8,685 crore.
• Net profit rose 9.4 percent to Rs 2,527.4 crore.
• Ebitda rose 8.3 percent to Rs 7,556.9 crore.
• Margin stood at 87 percent versus 84.2 percent.

Indraprastha Gas (Q2, YoY)

• Revenue rose 19.4 percent to Rs 1692 crore.
• Net profit rose 2 times to Rs 381 crore.
• Ebitda rose 27.5 percent to Rs 393 crore.
• Margin stood at 23.2 percent versus 21.7 percent.
• Deferred Tax Gain of Rs 69.5 crore in current quarter.

DLF (Q2, YoY)

• Revenue fell 19.8 percent to Rs 1,715.5 crore.
• Net profit rose 19.1 percent to Rs 445.9 crore.
• Ebitda fell 46.9 percent to Rs 350.3 crore.
• Margin stood at 20.4 percent versus 30.8 percent.
• Exceptional gain of Rs 143.6 crore in current quarter.
• Other expenses rose 91 percent to Rs 394.2 crore.

Wockhardt (Q2, YoY)

• Revenue fell 28.7 percent to Rs 802.2 crore.
• Net loss to Rs 82.8 crore.
• Ebitda fell 16.9 percent to Rs 43.3 crore.
• Margin stood at 5.4 percent versus 4.7 percent.

GlaxoSmithKline Consumer Healthcare (Q2, YoY)

• Revenue rose 5.7 percent to Rs 1,345.1 crore.
• Net profit rose 25.3 percent to Rs 345.3 crore.
• Ebitda rose 11.9 percent to Rs 395.8 crore.
• Margin stood at 29.4 percent versus 27.8 percent.

United Breweries (Q2, YoY)

• Revenue rose 3.5 percent to Rs 1,579.6 crore.
• Net profit fell 29.6 percent to Rs 114.9 crore.
• Ebitda fell 39.3 percent to Rs 192.3 crore.
• Margin stood at 12.2 percent versus 20.8 percent.
• RM as percent of Sales at 47.7 percent.
• Other expenses rose 18 percent to Rs 508.9 crore.

Trent (Q2, YoY)

• Revenue rose 33.4 percent to Rs 854.9 crore.
• Net profit fell 12 percent to Rs 18.6 crore.
• Ebitda rose 2.2 times to Rs 129.4 crore.
• Margin stood at 15.1 percent versus 9 percent.
• Depreciation rose 6 times; Finance Cost rose 5.2 times.

Amber Enterprises (Q2, YoY)

• Revenue rose 89 percent to Rs 623.2 crore.
• Net profit at Rs 11.8 crore.
• Ebitda rose 2.7 times to Rs 36.6 crore.
• Margin stood at 5.9 percent versus 4.2 percent.

Thyrocare Technologies (Q2, YoY)

• Revenue rose 11.8 percent to Rs 116.2 crore.
• Net profit rose 38.7 percent to Rs 35.1 crore.
• Ebitda rose 20.9 percent to Rs 52.1 crore.
• Margin stood at 44.8 percent versus 41.5 percent.
• Samples processed rose 5 percent to 0.52 crore.
• Investigations performed rose 11 percent to 2.99 crore.

Nifty Earnings To Watch

• Eicher Motors
• GAIL
• Mahindra & Mahindra
• Nestle

Other Earnings To Watch

• Ashok Leyland
• Tata Power
• Teamlease Services
• Great Eastern Shipping
• State Trading Corporation of India
• Triveni Engineering & Industries
• TTK Prestige
• Sobha
• MRF
• Music Broadcast
• Narayana Hrudayalaya
• Equitas Holdings
• Dr. Lal Path Labs
• Dredging Corporation of India
• Bank of Baroda
• Akzo Nobel
• AVT Natural Products
• Bharat Forge
• Bharat Wire Ropes
• Birlasoft
• Camlin Fine Sciences
• Century Textiles & Industries
• Chalet Hotels
• Dhanuka Agritech
• Elgi Equipments
• Excel Industries
• FDC
• Federal-Mogul Goetze
• GNA Axles
• Goodricke Group
• Greenply Industries
• Gujarat State Petronet
• Gulf Oil Lubricants
• Himatsingka Seide
• IDFC
• Hindustan Fluorocarbon
• INEOS Styrolution
• Jaypee Infratech
• Khadim
• Magma Fincorp
• Matrimony.com
• Max India
• Max Ventures and Industries
• Nelcast
• NLC India
• Rane Holdings
• Rico Auto Industries
• RSWM
• Sical Logistics
• Sundaram Finance Holdings
• Tata Investment Corporation
• Zuari Global
• Allahabad Bank
• Allcargo Logistics
• BSL
• Capacit'e Infraprojects
• Capri Global Capital
• Century Plyboards
• Crisil
• Essel Propack
• H.G. Infra Engineering
• IDBI Bank
• Indiabulls Real Estate
• KEC International
• Steel Strips Wheels
• Sundaram Multi Pap
• Tata Communications
• TCNS Clothing

• Raymond spun off its branded lifestyle business into a separate entity as part of a restructuring plan. The company’s lifestyle business, which comprises branded textiles, branded apparel and garments, would be separately listed on the bourses after the demerger, the textile maker said in an exchange filing. These segments cumulatively contributed almost 81 percent in sales for the financial year 2018-19, the filing said. Besides, the company also plans to “fully reduce debt” by issuing equity to JK Investo Trade (India) Ltd., its associate firm. Raymond announced the allotment of equity shares and compulsorily convertible preference shares to JKIT at a price of Rs 674 per share aggregating to rupees Rs 350 crore. As a result of equity issuance of Rs 225 crore and compulsorily convertible preference share issue of Rs 125 crore, JKIT’s stake would rise to 12.01 percent from the present 4.57 percent assuming full conversion into equity, the filing added.
• Bajaj Finance has set issue price at Rs 3,900 per share.
• Mindtree's Chief Financial Officer Pradip Kumar Menon has resigned, adding to the exodus of its top management since a hostile takeover by Larsen & Toubro Ltd. Menon would be pursuing career opportunities outside the company, the company said in an exchange filing, adding he would be relieved from services on Nov. 15.
• Future Retail stated that promoters hold 47.02 percent stake, out of which 72.65 percent stake in encumbered.
• Elantas Beck said that it is continuing with normal production operations and is also complying with temporary revocation order issued by Gujarat Pollution Control Board for company’s plant in Bharuch.
• Sudarshan Chemical has incorporated an arm in Japan to sell colour pigments.
• Reliance Home Finance NHB has imposed a penalty of Rs 45,000 on the company for contravention of NHB Directions.
• DLF has appointed Vivek Anand as the CFO of the company.

Corrects earlier version which misstated penalty imposed on Reliance Home Finance by NHB.

• U.S. stocks sputtered late in the session Thursday but still managed to close at a record high as traders were whipsawed by conflicting headlines on the progress of trade talks with China.
• Oil is set for a weekly gain amid signs China and the U.S. are making progress in resolving the protracted trade dispute that’s undermined demand in the world’s two largest economies.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.49 percent to 11,999 as of 8:05 a.m.

Asian stocks were mixed on Friday and U.S. equity futures edged lower as the risk-on mood that’s permeated global financial markets this week showed signs of abating.

Japanese and Chinese shares gained, while equities in Hong Kong dipped. Futures on the S&P 500 slipped after the index notched another record high.

Back home, Moody’s cuts India’s credit ratings outlook was cut to negative from stable, citing the government's struggle to lift economic growth and narrow the budget deficit.

“The decision reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses than Moody’s had previously estimated, leading to a gradual rise in the debt burden from already high levels,” Moody's Investors Service said.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.