Sensex, Nifty Slide For Second Day; IRCTC Q4 Net Profit Misses Estimates
Indian stocks fell, after seesawing between gains and losses, with the benchmark equity gauge registering a second day of declines after Friday’s record high close.
The S&P BSE Sensex lost 0.3% to 52,549.66, while the NSE Nifty 50 Index dropped by 0.4% to 15,748.45. ICICI Bank Ltd. contributed the most to the index decline, decreasing 1.6%. Indian Oil Corp. had the largest drop, falling 2.4%. Sixteen of the 19 sector sub-indexes compiled by BSE Ltd. declined, led by a gauge of metal companies.
Most Asian markets traded lower as investors remained concerned over the spread of the Delta variant of coronavirus. India on Monday unveiled more support measures for the pandemic-hit economy, including a 50% expansion in its emergency credit program, as well as support for the health care and tourism sectors.
“While the policy focus remains on small and vulnerable segments, it needs to be seen if this helps boost credit offtake,” Madhavi Arora, an economist with Emkay Global said in a note. She cited concerns about asset quality as an economic recovery remains uncertain.
Indicators later this week may underscore the state of the economy, with scheduled releases including the performance of key industries, the government’s fiscal deficit, and manufacturing PMI.
IRCTC Q4 Net Income Misses Estimates
IRCTC reported net income for the fourth quarter that missed the average analyst estimate.
Net income Rs 104 crore, estimate Rs 123 crore
Revenue Rs 339 crore, estimate Rs 317 crore
Total costs Rs 216 crore
Dividend per share Rs 5
Q4 exceptional loss of Rs 2.88 crore vs Rs 40 lakh gain YoY
Rural Stocks Struggle On Covid, Rain Woes In Indian Hinterland
Stocks of Indian companies that earn a large chunk of their revenues from the nation’s hinterland are facing the brunt of the coronavirus pandemic as a lack of health-care facilities and delayed advance of the monsoon hits consumption in rural areas.
Micro lenders, motorcycle manufacturers and makers of fast-moving consumer goods, which earn a sizable portion of their revenue from the rural regions, have fared poorly this year in comparison with stocks focused on urban consumption, Bloomberg Intelligence’s strategists Gaurav Patankar and Nitin Chanduka write in a note.
Fertiliser suppliers and tractor makers are also likely to struggle during the current wave of Covid-19 in the country, according to the note.
Oil India Down Most In 11 Weeks
Oil India Ltd. fell 4.3%, making it the worst performer among its peers.
Trading volume was 2.32 million shares, 26% above the 20-day average of 1.83 million shares for this time of day.
One-month implied volatility was 121%.
The shares are up 2.1% in the past 5 days and rose 16% in the past 30 days.
Oil India trades at 5.6 times its estimated earnings per share for the coming year. It trades at 4.8 times trailing EPS.
Analysts have 16 buy, three hold, and four sell recommendations on the stock.
The price target of Rs 168.06 represents a 8.4% increase from the last price