Sensex, Nifty Fall Most In Over A Month Dragged By Pharma, Energy Shares

Indian equity benchmarks fell most in over a month dragged by losses in pharma and energy shares.

The S&P BSE Sensex fell 1.07 percent to 33,370.76 and the NSE Nifty 50 Index declined 0.97 percent to 10,350.

Seventeen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Healthcare Index's 3.5 percent drop. On the other hand, the S&P BSE Information Technology Index was the top sectoral gainer, up 2 percent tracking fall in Indian rupee against the U.S. dollar.

Shares of the lubricant maker fell 2.3 percent after it reported September quarter earnings.

• Net profit rose 29 percent to Rs 178 crore versus Rs 138 crore (YoY)
• Revenue declined 2 percent to Rs 861.4 crore versus Rs 878 crore (YoY)
• Board approved bonus issue of one share for every one share held

Shares of the Pune-based real estate developer fell 3.8 percent to Rs 256 after it reported September quarter earnings.

• Consolidated net profit rose 53.6 percent to Rs 29.63 crore versus Rs 19.29 crore (YoY)
• Consolidated revenue advanced 72 percent to Rs 388.97 crore versus Rs 225.98 crore (YoY)
• Consolidated Ebitda gained 22.4 percent to Rs 69.84 crore versus Rs 57.04 crore (YoY)
• Consolidated margin at 18 percent versus 25.2 percent (YoY)

Shares of the Mumbai-based department store chain operator declined 0.6 percent to Rs 522. Its net profit doubled in July-September quarter.

• Net profit rose 100 percent to Rs 153.16 crore versus Rs 73.6 crore (YoY)
• Revenue rose 7.5 percent to Rs 4,506 crore versus Rs 4,191 crore (YoY)
• Total costs at Rs 4,356 crore versus Rs 4,124 crore (YoY)

AstraZeneca Pharma: Shares of the Bangalore-based drugmaker rose as much as 16.2 percent, the most in over two years, to Rs 1,278 after it reported manifold increase in net profit in July-September quarter.

• Net profit in Q2 came in at Rs 27.38 crore versus Rs 80 lakh (YoY)
• Revenue rose 18 percent to Rs 164.25 crore versus Rs 139.40 crore (YoY)

NBCC: The state-run construction company rose 8.4 percent after Bofa-ML initiated coverage on the stock with a 'Buy' rating for target price of Rs 330, indicating an upside of 25 percent.

MMTC: The government-owned wholesaler of minerals and precious metals has risen 38 percent in last three trading sessions on reports of merger with State Trading Corporation.

Balmer Lawrie & Company: The Kolkata-based travel service company rose 10 percent to Rs 278 on heavy volume. Trading volume was at over 23.8 times its 20-day average.

Indian rupee fell as much as 0.52 percent, the most in over a month, to 65.01 against the U.S. dollar.

Shares of the Mumbai-based agricultural chemical maker rose after it met Bloomberg consensus estimates in September quarter.

• Net profit rose 20.1 percent to Rs 190.6 crore versus estimate of Rs 190 crore(YoY)
• Revenue rose 11.6 percent to Rs 1,232 crore versus estimate of Rs 1,230 crore (YoY)
• Ebitda or operating profit rose 20.6 percent to Rs 287 crore versus Rs 238 crore (YoY)
• Margin at 23.3 percent versus 21.55 percent (YoY)

Shares of the Mumbai-based household products maker fell as much as 15.8 percent, the most in over two months, to Rs 328.60 after Henkel AG decided not to exercise option to buy stake in Jyothy Labs.

Cipla Says:

• India revenue up 12 percent (YoY) and 30 percent (QoQ)
• India business up 19 percent (YoY) adjusted for GST
• North America revenue down 7 percent (YoY) and down 4 percent (QoQ)
• South Africa revenue up 5 percent (YoY) and 23 percent (QoQ)
• Europe revenue up 14 percent (YoY) and down 8 percent (QoQ)
• EM revenue up 11 percent (YoY) and down 2 percent (QoQ)
• API revenue up 84 percent (YoY) and down 21 percent (QoQ)

Shares of the Delhi-based electrical power equipment maker fell as much as 5.5 percent, the most in two months, to Rs 93.55 after it missed Bloomberg consensus estimates in September quarter.

• Net profit rises 5.9 percent to Rs 115 crore versus estimate of Rs 158 crore (YoY)
• Net sales decline 3.3 percent to Rs 6,384.9 crore versus estimate of Rs 6,790 crore
• Ebitda loss of Rs 95.42 crore versus profit of Rs 155.18 crore
• Margin at -1.5 percent versus 2.4 percent (YoY)

• No one on the Street was expecting a warning letter
• Unlikely to see an import alert for these two facilities
• Management was expecting an EIR very soon
• Facilities conributed 15-20 percent to the U.S. business

Shares of the Chennai-based auto parts maker rose as much as 4.2 percent to Rs 7,125 after it beat consensus Bloomberg estimates in September quarter.

• Net profit rose 61.3 percent to Rs 77.59 crore versus estimate of Rs 66 crore
• Revenue rose 31.4 percent to Rs 609.76 crore versus Rs 464 crore

Shares of the Bangalore-based bio-pharmaceutical company rose as much as 2.2 percent to Rs 421.05 after its partner Mylan resubmitted two biosimilars Trastuzumab and Pegfilgrastim with the European regulator, EMA, the company said in an exchange notification.

Shares of the Hyderabad-based cement maker fell as much as 4.87 percent after it missed Bloomberg consensus estimates in September quarter.

• Loss widens to Rs 23.87 crore versus estimate of loss of Rs 9.98 crore
• Revenue at Rs 1,160 crore versus estimate of Rs 1,250 crore
• Standalone operating profit or Ebitda up 24.2 percent at Rs 40.35 crore versus Rs 32.49 crore (YoY)
• Standalone margins at 3.5 percent versus 2.8 percent (YoY)

• ICICI Bank has approved stake sale in ICICI Securities via initial public offer (IPO).

Shares of the Mumbai-based drugmaker declined after its net profit declined in September quarter on (YoY) basis.

• Net profit fell 11 percent to Rs 19.76 crore versus 22.13 crore (YoY)
• Revenue rose 1.4 percent to Rs 280 crore versus Rs 276 crore (YoY)
• Q2 standalone Ebitda up 1.6 percent at Rs 40.97 crore versus Rs 40.33 crore (YoY)
• Total costs at Rs 268 crore

Shares of the Vadodara-based drugmaker were trading flat after it reported marginal rise in profit in the September quarter.

• Net profit rose 1.4 percent to Rs 121.56 crore versus Rs 119.83 crore (YoY)
• Revenue declined 10 percent to Rs 789 crore versus Rs 879 crore (YoY)
• Total costs at Rs 636 crore

• Indian equity benchmarks were trading on subdued note as gains in IT shares, which rose tracking rupee weakness against the dollar, was offset by losses in oil refiners, which fell after crude oil rose to highest level in two years.
• The S&P BSE Sensex declined 0.13 percent to 33,686 and the NSE Nifty 50 Index fell 0.15 percent to 10,436.
• Broader markets were underperforming the benchmarks as the S&P BSE MidCap Index fell 0.4 percent and the S&P BSE SmallCap Index declined 0.16 percent.
• Fifteen out of 19 sector gauges compiled by BSE were trading lower, led by the S&P BSE Energy Index's 1.6 percent drop. On the other hand, the S&P BSE Information Technology Index was the sectoral gainer, up 2.4 percent.

Shares of the automaker recovered from intraday low after it reported Jaguar Land Rover sales which rose 0.2 percent annually to 46,418 units.

• Land Rover October retail sales rose 6.8 percent to 34,082 units (YoY)
• Jaguar October retail sales fell 14.3 percent to 12,336 units (YoY)

• Surge of QIPs does indicate sluggishness in the market
• Could see double digit growth next year
• IPO activity has been mixed, D-Mart and insurance company IPOs were the better ones
• Pick up in oil prices is a concern for India
• FII money has come to India despite GDP going down and interest rates falling
• Commodity cycle may turn the other way going ahead
• GST collections have been below par
• Cautious investor should see this as the bottom of the rate cycle
• Worried about brokering companies becoming NBFCs

Shares of the Bangalore-based drugmaker rose as much as 16.2 percent, the most in over two years, to Rs 1,278 after it reported manifold increase in net profit in July-September quarter.

• Net profit in Q2 came in at Rs 27.38 crore versus Rs 80 lakh (YoY)
• Revenue rose 18 percent to Rs 164.25 crore versus Rs 139.40 crore (YoY)

Shares of the oil marketing companies like Bharat Petroleum, Indian Oil, and Hindustan Petroleum declined over 2.5 percent each after crude oil price rose to its highest level in two-years.

Higher crude oil prices adversely impact the margins of oil refiners.

• Indian Oil fell 2.6 percent to Rs 399.80
• Bharat Petroleum declined 2.5 percent to Rs 510.95
• Hindustan Petroleum slipped 2.6 percent to Rs 422.50

Shares of the country's biggest IT firm rose as much as 3.84 percent, the most in over three months, to Rs 2,768 on the back of heavy volume.

Trading volume was 1.3 times its 20-day average.

Earnings Today: Cipla may benefit from post-#GST restocking. #Q2WithBQhttps://t.co/UaUSP8EwCP pic.twitter.com/y1Gq9p9jwL

— BloombergQuint (@BloombergQuint) November 7, 2017

Shares of the Mumbai-based local search engine fell as much as 5.85 percent, the most in over two months, to Rs 450.35 after its net profit declined in July-September quarter.

• Revenue up 2.4 percent at Rs 194.5 crore.
• Net profit down 1.8 percent at Rs 37.5 crore.
• EBIT up 19.7 percent at Rs 39.5 crore.
• Margin at 20.3 percent versus 17.4 percent.

Share of the state-run oil exploration company rose as much as 3.14 percent, the most since November 6, to Rs 205.50 after crude oil prices in international markets rose to over two-year high.

Oil prices have climbed by $15 from their nadir this year to breach $57 a barrel on Monday, spurred by a cascade of events that began with widespread arrests among Saudi Arabia’s elite.

The arrests raise “the specter of instability in the kingdom,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, by telephone. “It’s another round of jawboning here to get this nervous market higher.”

• Delta Corp has 39.4 lakh shares change hands in multiple blocks at Rs 281 per share.

Buyers and sellers were not immediately known

Source: Bloomberg

• Rupee opens higher at 64.64 per dollar against Monday's close of 64.68

#BQMarketsNow | Mid-cap stocks poised for a major sell-off, says Amit Harchekar.https://t.co/gznoCMVe3B pic.twitter.com/spfywE6WwO

— BloombergQuint (@BloombergQuint) November 7, 2017

• Cipla
• Aditya Birla Capital
• Alembic Pharmaceuticals
• Bharat Heavy Electricals
• Castrol India
• Dalmia Bharat
• Future Retail
• Himatsingka Seide
• Jyothy Laboratories
• L&T Technology Services
• Liberty Shoes
• Manappuram Finance
• Prestige Estates Projects
• Tata Coffee
• Tata Investment Corporation
• Teamlease Services
• Thermax
• VIP Industries

Torrent Power (Q2FY18, YoY)

• Revenue up 9 percent at Rs 2915 crore.
• Net profit up 125 percent at Rs 317.6 crore.
• EBITDA up 27 percent at Rs 838 crore.
• Margin at 28.7 percent versus 24.6 percent.

Just Dial (Q2FY18, QoQ)

• Revenue up 2.4 percent at Rs 194.5 crore.
• Net profit down 1.8 percent at Rs 37.5 crore.
• EBIT up 19.7 percent at Rs 39.5 crore.
• Margin at 20.3 percent versus 17.4 percent.

L&T Infotech (Q2FY18, QoQ)

• Revenue from operations up 4.8 percent at Rs 1,751 crore.
• Net profit up 2.2 percent at Rs 273 crore.
• EBIT up 5.1 percent at Rs 286 crore.
• Margin flat at 16.3 percent.

KEC International (Q2FY18, YoY)

• Revenue up 3 percent at Rs 2,132 crore.
• Net profit up 37.5 percent At Rs 89.4 crore.
• EBITDA up 16.5 percent at Rs 215.8 crore.
• Margin at 10.1 percent versus 8.9 percent.

NRB Bearings (Q2FY18, YoY)

• Revenue up 16 percent at Rs 208 crore.
• Net profit up 24 percent at Rs 21 crore.
• EBITDA up 18.5 percent at Rs 41.7 crore.
• Margin at 20 percent versus 19.6 percent.

Gujarat Industries (Q2FY18, YoY)

• Revenue up 2.6 percent at Rs 323.7 crore.
• Net profit up 5.5 percent at Rs 53.3 crore.
• EBITDA up 26.7 percent at Rs 119.6 crore.
• Margin at 36.9 percent versus 29.9 percent.

Gulf Oil Lubricants (Q2FY18, YoY)

• Revenue up 22.3 percent at Rs 323 crore.
• Net profit up 37.9 percent at Rs 40 crore.
• EBITDA up 40.9 percent at Rs 62 crore.
• Margin at 19.2 percent versus 16.67 percent.

Jaiprakash Power Ventures (Q2FY18, YoY)

• Revenue up 24.6 percent at Rs 826 crore.
• Net loss of Rs 157 crore from a loss of Rs 162 crore.
• EBITDA up 8.6 percent at Rs 303 crore.
• Margin at 36.7 percent versus 42.1 percent.

Thomas Cook (Q2FY18, YoY)

• Revenue up 27.9 percent at Rs 2,676 crore.
• Net profit up 166.67 percent at Rs 24 crore.
• EBITDA down 2.2 percent at Rs 66.5 crore.
• Margin at 2.5 percent versus 3.3 percent.

Gujarat Gas (Q2FY18, YoY)

• Revenue up 12 percent at Rs 1391.4 crore.
• Net profit down 12 percent at Rs 61 crore.
• EBITDA down 3.2 percent at Rs 202.6 crore.
• Margin at 14.6 percent versus 16.9 percent.

TRF Ltd (Q2FY18, YoY)

• Revenue up 7.3 percent at Rs 219 crore.
• Net loss of Rs 32 crore from a loss of Rs 16 crore.
• EBITDA loss at Rs 37 crore from Rs 0.5 crore
• Margin at -17 percent from 0.2 percent

Here’s how foreign and local funds played the market on Monday. https://t.co/Rihr4E2WwC pic.twitter.com/FjOcjYsXX2

— BloombergQuint (@BloombergQuint) November 7, 2017

HDFC Standard Life IPO Opens Today: Here’s all you need to knowhttps://t.co/znkSgc1xIr pic.twitter.com/I5BEjB7DIh

— BloombergQuint (@BloombergQuint) November 7, 2017

• Circuit filter revised to 10 percent: STCI, Hindustan Copper, ILFS Engineering.

• Parag Milk Foods: Abu Dhabi Investment Authority sold 4.96 lakh shares or 0.6 percent equity stake at Rs 282.5 each.

• Reliance Communications inked pact with Veecon Media & TV to sell Reliance Big TV’s DTH operations across India.
• Bank of Maharashtra set one-Year MCLR at 8.65 percent, effective from today.
• Axiscades Engineering Technologies to acquire Mistral Solutions for Rs 175 crore.
• Shreyas Shipping sold its vessel M.V.SSL Sagarmala for a consideration of $1.24 million.
• Sagar Cement’s production up 15.5 percent in October at 195,066 million tonne.
• Narayana Hrudayalaya to acquire 71.4 percent stake in Health City Cayman Islands through its subsidiary for $32.26 million.
• Muthoot Capital Services: Launched QIP to raise Rs 200 crore. Price band at Rs 601-610 per share.
• Mercator launches QIP. Floor price at Rs 44.65 per share.
• Sun Pharma’s subsidiary Taro to report results tonight.
• Tata Chemicals sells its phosphatic fertilisers business, to IRC agro-chemicals Private Ltd. for Rs. 375 crore.

Nomura on Cummins India

• Maintained ‘Neutral’; Cut price target to Rs 898 from Rs 909.
• Growth in the first half of current financial year has likely bottomed out; Revival unlikely to be speedy.
• Cut EPS estimates for the current and next financial year by 18-21 percent on weak exports and margins.
• Recent slowdown in domestic segments on account of GST is likely to be temporary.
• AIA Engineering is preferred pick.

Credit Suisse on Nestle India

• Maintained ‘Outperform’; Hiked price target to Rs 8,200 from Rs 7,700.
• Nestle India has seen volume turnaround after seven years of flat volumes.
• Operating margins at near ten-year low, due to higher ad spends higher depreciation.
• Guidance of 150-250 basis points margin expansion over four years lift target price.
• Expect Nestle to have cost savings from GST.

Deutsche Bank on Rural Electrification (REC)

• Maintained ‘Buy’ with price target of Rs 200.
• Weak margins were reported during the previous quarter, but asset quality was stable
• Growth trajectory is steady, asset quality is holding up well.
• Return on equity to be at 17 percent and 5 percent dividend yield make stock attractive.
• REC to benefit from UDAY and limited system wide appetite for power sector lending.

UBS on Rural Electrification

• Maintained ‘Buy’ with price target of Rs 235.
• Margins declined sharply during the previous quarter; Return on equity below 15 percent.
• Earnings per share cut likely to happen in the current or the next financial year; Await more clarity on loan re-pricing.
• Asset quality was stable with provisions maintained.
• Buy given in-expensive valuations, strong capital and return ratios and dividend yields.

Deutsche Bank on Gujarat Gas

• Maintained ‘Buy’ with a price target of Rs 1,055.
• Previous quarter was below estimates due to lower margins on account of higher gas cost and other expenses.
• Higher other expenses partly due to flood relief efforts and unrecoverable GST related impact.
• Cut earnings per share estimates for the current and the next financial year by 9 percent and 2 percent respectively to factor lower volumes and margins reported in the September quarter.
• Expect earnings per share estimates to grow at a compound annual growth rate of 71 percent over till March 2019, led by growth in volumes and margins.
• Expect volumes to bounce back in the current quarter due to ramp-up of new areas.

JM Financial on DCB Bank

• Initiated ‘Buy’ with price target of Rs 230; Potential upside of 27 percent
• Increased synergies and efficiencies to drive better fee income accretion.
• Expect cost ratios to improve; Expect earnings CAGR of 25 percent over the next five years.
• Return on equity and asset to improve to 15 percent and 1.24 percent respectively by March 2020.
• Positives: consistent growth, healthy net interest margins, improving operating costs and strong asset quality.

JM Financials on Federal Bank

• Initiated ‘Buy’ with price target of Rs 140; Potential upside of 21 percent.
• Federal Bank’s focus remains on sweating existing assets; Return on asset to turnaround.
• Tapering of operating and credit costs to boost return profile.
• Return on equity and asset to improve to 13 percent and 1.02 percent respectively by March 2020.
• Net interest margins to remain range bound 3.06-3.14 percent for the financial years till March 2020.

JM Financials on City Union Bank

• Initiated ‘Buy’ with a price target of Rs 185; Potential upside of 13 percent.
• Expect margins to come off slightly driven by competition.
• Deposit accretion to remain stable; CASA unlikely to show meaningful upside.
• Asset quality within control; Credit costs to taper off by March 2020.
• Improvement in credit costs to keep earnings on an improving track.
• Expect Bank to continue on its steady growth path.
• City Union is a healthy compounding play with greater bottomline visbility over the medium term.

CLSA on Westlife Development

• Maintained ‘Buy’; hiked price target to Rs 320 from Rs 300.
• Higher footfalls and internal measures are helping to deliver high growth rates and strong margin expansion.
• Management confident of sustaining growth momentum and guides for high-single-digit same store sales growth for the current financial year.
• Raised operating income estimates by 10-14 percent to factor in the previous quarter results.
• Westlife is an interesting play on recovery in urban discretionary consumption.

Macquarie on Just Dial

• Previous quarter results were ahead of estimates due to stringent cost controls.
• Remain wary of the muted topline growth and believe company continues to face structural headwinds.

Morgan Stanley on Just Dial

• Maintained ‘Underweight’ with price target of Rs 360.
• Revenue growth didn’t show signs of pickup .
• Volume growth remained muted.
• Sales headcount declined for second consecutive quarter.

#BQExclusive | Manmohan Singh on #demonetisation: RBI was bypassed in one of India’s most significant decisions.https://t.co/AFWmFGxq1K pic.twitter.com/hmCEzP8Xo0

— BloombergQuint (@BloombergQuint) November 6, 2017

Oil trades near 2-year high after Saudi prince purges officials.https://t.co/HgkaZPZFK7 pic.twitter.com/jToCPSGKcj

— BloombergQuint (@BloombergQuint) November 6, 2017