Sensex Closes Off Record High As HDFC Bank, RIL Weigh; Nifty Ends Below 11,900

Shares of Indian Oil Corporation fluctuated between gains and losses to trade little changed at Rs 147.05.

Key Earnings Highlights (Q2, QoQ)

• Net profit down 84.3 percent to Rs 563 crore.
• Revenue down 15.07 percent to Rs 1,11,690 crore.
• Ebitda down 57 percent to Rs 3,572.
• Margin at 3.2 percent versus 6.35 percent.

Quess Corp

• Stock rose as much as 16.9 percent to Rs 554.
• Stock rose as much as 9.5 percent to Rs 519.
• Revenue rose 26.7 percent to Rs 2,650.3 crore.
• Net profit fell 2 percent to Rs 60.6 crore.
• Ebitda rose 44.1 percent to Rs 161.4 crore.
• High finance and depreciation costs impacted profits.

Tata Global Beverages

• Stock rose as much as 5.1 percent to Rs 306.50.
• Revenue rose 4.2 percent to Rs 1834.1 crore.
• Net profit fell 18.9 percent to Rs 137.7 crore.
• Ebitda rose 41 percent to Rs 234.7 crore.
• Margin stood at 12.8 percent versus 9.5 percent.
• Merger of consumer products business of Tata Chemicals with self on schedule and expected to achieve full closure by end of 2019-20.

Gujarat Pipavav Port

• Stock rose as much as 7.1 percent to Rs 87.80.
• About 10.5 lakh shares of Gujarat Pipavav changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

HCC

• Stock rose as much as 19.6 percent to Rs 10.05.
• “The lenders to Lavasa Corp. will consider three offers made for the real estate company today,” Business Standard reported quoting a bank official it didn’t identify. “A group led by Haldiram snacks has offered to take over Lavasa for Rs 2,046 crore,” the report added.

Dhanlaxmi Bank Ltd. Managing Director and CEO T Latha resigned due to due to personal reasons, according to the lender’s stock exchange filing.

Besides, BloombergQuint spoke to Latha earlier. Here are the key highlights from the conversation:

• Loan growth driven by gold loans, MFI loans.
• Have increased the PCR to 90 percent.
• Gross NPAs should come down to less than 6.5 percent.

United Bank of India

• Stock rose as much as 16.9 percent to Rs 10.40.
• Trading volume was almost 18 times its 20-day average.

Quess Corp

• Stock rose as much as 16.9 percent to Rs 554.
• Trading volume was almost 19 times its 20-day average.

HUDCO

• Stock rose as much as 14.4 percent to Rs 43.60
• Trading volume was more than 13 times its 20-day average.

Tata Global Beverages

• Stock rose as much as 8.7 percent to Rs 317.
• Trading volume was almost 11 times its 20-day average.

European stocks and U.S. futures edged higher on Thursday as investors weighed the Federal Reserve’s latest rate cut and a flurry of major corporate earnings.

• Futures on the S&P 500 Index climbed 0.1 percent.
• The Stoxx Europe 600 Index increased 0.1 percent.
• The Shanghai Composite Index declined 0.3 percent.
• The MSCI Emerging Market Index rose 0.4 percent.

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Source: Bloomberg

The rally, he said, will be led by cyclical sectors such as banking, infrastructure and consumer discretionary.

Here’s what other market veterans had to say after Sensex hits record high.

Shares of Lakshmi Machine Works fell as much as 10.9 percent, the most since January 2011, to Rs 3,485.

Trading volume was almost 11 times its 20-day average, according to Bloomberg data. Of the shares traded, 38 percent were at the ask price and 49 percent were at the bid.

The stock declined 39 percent in the past 12 months compared to a 17 percent advance in the Sensex.

Shares of Central Bank of India extended gains for the fifth consecutive trading session. The stock rose as much as 18.2 percent to Rs 24.65.

The capital raising committee approved issuing preferential capital of 158 crore shares worth Rs 3,353 crore to the Government of India, the lender said in a statement on the exchanges on Oct. 30. “The plan is subjected the approval from shareholders and other statutory authorities,” it added.

The stock advanced 44 percent in five trading sessions.

Container Corporation of India (Q2, YoY)

• Stock rose as much as 2.7 percent to Rs 608.60.
• Revenue fell 4.6 percent to Rs 1,738.7 crore.
• Net loss stood at Rs 322 crore versus net profit of Rs 336.1 crore.
• Ebitda fell 15.6 percent to Rs 425.5 crore.
• Margin stood at 24.5 percent versus 27.7 percent.
• Other operating expenses rose 9 percent to Rs 225.1 crore.

CreditAccess Grameen (Q2, YoY)

• Stock rose as much as 4.8 percent to Rs 674.80.
• Net interest income rose 23.3 percent to Rs 259.4 crore.
• Net profit rose 37.3 percent to Rs 100.9 crore.
• GNPA at 0.52 percent versus 0.55 percent quarter-on-quarter.
• NIM at 12.1 percent versus 12.6 percent QoQ.
• Gross loan portfolio rose 36.4 percent at Rs 7,905 crore.

Tata Global Beverages (Q2, YoY)

• Stock rose as much as 5.1 percent to Rs 306.50.
• Revenue rose 4.2 percent to Rs 1834.1 crore.
• Net profit fell 18.9 percent to Rs 137.7 crore.
• Ebitda rose 41 percent to Rs 234.7 crore.
• Margin stood at 12.8 percent versus 9.5 percent.

JK Tyre & Industries (Q2, YoY)

• Stock rose as much as 14.4 percent to Rs 80.35.
• Revenue fell 13.6 percent to Rs 2,155 crore.
• Net profit rose 3.3 times to Rs 170.1 crore.
• Ebitda rose 12.8 percent to Rs 296.4 crore.
• Margin stood at 13.8 percent versus 10.5 percent.

Quess Corp (Q2, YoY)

• Stock rose as much as 9.5 percent to Rs 519.
• Revenue rose 26.7 percent to Rs 2,650.3 crore.
• Net profit fell 2 percent to Rs 60.6 crore.
• Ebitda rose 44.1 percent to Rs 161.4 crore.
• Margin stood at 6.1 percent versus 5.4 percent.

Shares of Hindustan Construction Company rose as much as 19.6 percent, the most in over a year, to Rs 10.05.

“The lenders to Lavasa Corp. will consider three offers made for the real estate company today,” Business Standard reported quoting a bank official it didn’t identify. “A group led by Haldiram snacks has offered to take over Lavasa for Rs 2,046 crore,” the report added.

Trading volume was almost 40 times its 20-day average, according to Bloomberg data. The scrip declined 23 percent in the past five days and advanced 12 percent in the past 30 days.

Shares of International Paper APPM fell as much as 13.6 percent to Rs 301.35.

The company completed the sale of its controlling interest (21.87 million shares) in India-based International Paper APPM to West Coast Paper Mills for about $85 million and intends to pursue suitable alternatives to divest its remaining 20 percent stake in APPM, according to Bloomberg report.

Trading volume was almost 110 times its 20-day average, according to Bloomberg data. Of the shares traded, 56 percent were at the ask price and 34 percent were at the bid.

Shares of Lakshmi Vilas Bank fluctuated between gains and losses to trade 0.34 percent higher at Rs 14.75.

About 28 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

The Relative Strength Index was below 30, indicating that the stock may be oversold, according to Bloomberg data.

Futures

• Nifty Oct futures closed at 11840.2, discount of 3.8 points versus premium of 8.6 points.
• Nifty futures across series OI down 3.3 percent, sheds 5.5 lakh shares in OI.
• Nifty Bank Oct futures closed at 29,986.4, discount of 1 point versus premium of 27 points.
• Nifty Bank futures across series OI up 3.7 percent, adds 49,900 shares in OI.
• Rollover: Nifty 53 percent, Nifty Bank 45 percent

Options

• Nifty PCR unchanged at 1.48 (across all series)

Nifty Monthly Expiry: Oct 31

• Max OI on call side at 12,000 (32.7 lakh shares)
• Max OI on put side at 11,800 (29 lakh shares)
• OI addition seen at 11,800P (+14 lakh shares), 11,850P (+8 lakh shares), 11.850C (7.3 lakh shares)

• Reliance Industries: Reliance Jio has objected to telcos seeking relief from DoT after the AGR judgement.
• Fitch Ratings has placed Bharti Airtel’s ‘BBB-’ Long Term Foreign Currency Issuer Default Rating  on rating watch negative due to the Supreme Court ruling of Oct. 24.
• International Paper completed the sale of its controlling interest (21.87 million shares) in India-based International Paper APPM to West Coast Paper Mills for about $85 million and intends to pursue suitable alternatives to divest its remaining 20 percent stake in APPM. (BN)
• HDFC said that it has been allotted 15.93 crore shares or 9.9 percent stake in Bandhan Bank post the merger of Gruh Finance and Bandhan Bank.
• CreditAccess Grameen: MN Gopinath resigned from the post of Chairman and Independent Director citing his disengagement from all corporate activities upon crossing the age of 70 years. Paolo Brichetti has been appointed at Non-Executive Chairman. Besides, the board authorised to raise up to Rs 1,000 crore via NCDs.
• Intellect Design Arena has signed a multi-million deal with U.K.’s Commonwealth Trade Bank for digital solutions.
• UFO Moviez: The National Company Law Appellate Tribunal has allowed company’s appeal and set aside National Company Law Tribunal order against the amalgamation between the company and PJSA, Qube Cinema Technologies, Qube Digital Cinema and Moviebuff.
• Quess Corp to subscribe debentures in its arm Trimax Smart Infra for an amount not exceeding Rs 129 crore and Board approved investment of Rs 12 crore in its arm Qdigi Services and to acquire 18.7 percent stake in its subsidiary Vedang Cellular Services for Rs 10 crore. Besides, Krishna Suraj Moraje has been appointed as executive director and Group Chief Executive Officer designate with effect from Nov. 4. Also, the company has expected that it will receive Rs 81 crore from Trimax Resolution in Fiscal year 2020 and the demerger of Thomas Cook is expected to be completed by December.
• ICICI Lombard General Insurance to acquire proprietary software from Unbox Technologies , along with ancillary movable assets for housing the software and employees for operation, maintenance and development of the software, for an aggregate cash consideration of Rs 225 crore. Transaction is expected to be completed in the Q3 FY20. Company has also entered in to a Bancassurance tie-up with Karur Vyasa Bank.
• Jindal Worldwide said that a fire accident occurred in its factory premises in Ahmedabad and the company had a major loss of its stock. Loss of the stock is adequately insurance and the total insurance cover of the stock of the company amounts to Rs 188 crore. Reason of the fire accident and the actual loss is under investigation.
• TVS Motor to partner with South America’s Cadisa Group which will facilitate the opening of 15 flagship outlets of the company in Guatemala and El Salvador.
• Balaji Amines has started manufacturing of fungible products and commenced commercial production at company’s subsidiary plant and is expected environmental clearance for 90-acre Greenfield project in the month of November.
• Vodafone Idea’s long-term bank facilities and debenture have been cut to A- from A by Care Ratings on account of Supreme Court Ruling. Outlook has also been revised from Negative to Credit Watch with Negative Implications.
• Aviation Stocks: IndiGo has planned 572 international flight per week, while SpiceJet has planned 229 international flights for the winter schedule, respectively. (Directorate General of Civil Aviation Release-BN)
• Future Retail said that promoters have 47 percent stake in the company, out of which 73.95 percent of the promoter shareholding is encumbered.
• Sonata Software: P Srikar Reddy has been re-appointed as Managing Director and CEO for three years till February 2023.

Nifty Earnings To Watch

• Indian Oil Corporation

Other Earnings To Watch

• Manappuram Finance
• Spandana Sphoorty Financial
• BF Utilities
• Blue Dart Express
• Dhanlaxmi Bank
• Foseco India
• Garden Reach Shipbuilders & Engineers
• IFB Agro Industries
• JBM Auto
• Jindal Saw
• Laurus Labs
• LG Balakrishnan & Bros
• Ramco Industries
• Srikalahasthi Pipes
• Syndicate Bank
• Thirumalai Chemicals
• Tube Investments of India
• Vaibhav Global

Earning Reactions To Watch

Container Corporation of India (Q2, YoY)

• Revenue fell 4.6 percent to Rs 1,738.7 crore.
• Net loss stood at Rs 322 crore versus net profit of Rs 336.1 crore.
• Ebitda fell 15.6 percent to Rs 425.5 crore.
• Margin stood at 24.5 percent versus 27.7 percent.
• Other operating expenses rose 9 percent to Rs 225.1 crore.

CreditAccess Grameen (Q2, YoY)

• Net interest income rose 23.3 percent to Rs 259.4 crore.
• Net profit rose 37.3 percent to Rs 100.9 crore.
• GNPA at 0.52 percent versus 0.55 percent quarter-on-quarter.
• NIM at 12.1 percent versus 12.6 percent QoQ.
• Gross loan portfolio rose 36.4 percent at Rs 7,905 crore.

Tata Global Beverages (Q2, YoY)

• Revenue rose 4.2 percent to Rs 1834.1 crore.
• Net profit fell 18.9 percent to Rs 137.7 crore.
• Ebitda rose 41 percent to Rs 234.7 crore.
• Margin stood at 12.8 percent versus 9.5 percent.

JK Tyre & Industries (Q2, YoY)

• Revenue fell 13.6 percent to Rs 2,155 crore.
• Net profit rose 3.3 times to Rs 170.1 crore.
• Ebitda rose 12.8 percent to Rs 296.4 crore.
• Margin stood at 13.8 percent versus 10.5 percent.

Quess Corp (Q2, YoY)

• Revenue rose 26.7 percent to Rs 2,650.3 crore.
• Net profit fell 2 percent to Rs 60.6 crore.
• Ebitda rose 44.1 percent to Rs 161.4 crore.
• Margin stood at 6.1 percent versus 5.4 percent.

• The S&P 500 turned higher to end at record high when Chairman Jerome Powell said rate hikes won’t occur as long as inflation remains persistently cool.
• Oil fell for a third day as a U.S. government report showed a bigger-than-expected build in domestic crude supplies and Chile canceled a summit where the U.S. and China were expected to sign a preliminary trade accord.

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