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Sensex, Nifty Decline On First Full Trading Session Of Samvat 2075

Sensex, Nifty Decline On First Full Trading Session Of Samvat 2075
The Bombay Stock Exchange (BSE) building, left, looms over a no-entry street sign in Mumbai. Photographer: Prashanth Vishwanathan/Bloomberg
7 years ago
Indian equity benchmarks declined on first full trading session of Samvat 2075 paced by losses in Bharti Airtel, Infosys, TCS and Reliance Industries.

  • Ashok Leyland has 10.5 lakh shares change hands in a single block. Stock down 2.7 percent at Rs 118.45.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

Shares of the Tirupati-based battery maker fell as much as 2.46 percent to Rs 760 after its net profit fell 5.5 percent on a yearly basis to Rs 120.2 crore during the July-September period.

Key earnings highlights (Q2, YoY)

  • Net profit down 5.5 percent at Rs 120.2 crore versus estimate of Rs 118 crore.
  • Revenue up 22.8 percent at Rs 1,753 crore.

Cloud Of Repeat Observations Hangs Over Dr. Reddy’s Duvvada Plant

Indian equity mutual funds saw inflows of around Rs 15,000 crore in October which was highest since February 2018, according to data released by Association of Mutual Funds of India (AMFI).

Total mutual fund inflows stood at Rs 35,530 crore in October.

Shares of the Chennai-based public sector lender fell as much as 6.80 percent to Rs 243.80 after its net profit declined on account of higher provisioning and asset quality worsened in September quarter earnings.

Key earnings highlights:

  • Net interest income up 12 percent at Rs 1,731 crore versus Rs 1,544 crore (YoY)
  • Net profit down 67 percent at Rs 150 crore versus Rs 451.54 crore (YoY)
  • Gross non-performing assets as a percentage of total advances at 7.16 percent versus 7.20 percent (QoQ)
  • Net non-performing assets as a percentage of total advances at 4.23 percent versus 3.49 percent (QoQ)
  • Provisions for bad loans at Rs 752.48 crore versus Rs 456.59 crore (QoQ)

Indian equity benchmarks were trading with a negative bias weighed down by weakness in IT, metal and telecom stocks.

The S&P BSE Sensex fell 0.12 percent or 42 points to 35,196 and the NSE Nifty 50 Index declined 0.1 percent or 10 points to 10,588.

Ten of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE IT Index's 1.2 percent fall. On the other hand, the S&P BSE Consumer Durables Index was top gainer, up 0.7 percent.

  • Linde India: The Kolkata-based chemical company rose as much as 19 percent to Rs 578 on delisting proposal by the founder group. Trading volume was 46 times its 20-day average.
  • Gayatri Projects: The Hyderabad-based infrastructure construction company rose as much as 1.6 percent to Rs 184.50. Trading volume was 7.7 times its 20-day average.
  • 8K Miles Software: The Chennai-based software developer rose as much as 5 percent to Rs 93.10. Trading volume was six times its 20-day average.
  • Mahindra Logistics: The Mumbai-based logistics company declined as much as 1.83 percent to Rs 520. Trading volume was seven times its 20-day average.

Shares of the Chennai-based cement maker rose as much as 4.31 percent to Rs 98.10 after its revenue met Bloomberg consensus estimates in September quarter.

Key earnings highlights:

  • Net profit fell 94 percent to Rs 1.43 crore versus estimate of Rs 5.76 crore
  • Revenue rose 9.4 percent to Rs 1,387 crore versus estimate of Rs 1,330 crore

  • South Indian Bank has 11.3 lakh shares change hands in a block deal. Stock up 2.3 percent at Rs 15.50.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

Shares of oil marketing companies advanced after Brent crude prices declined 2 percent to $70.65 in yesterday's session.

  • Indian Oil rose 2 percent to Rs 142
  • HPCL advanced 2.4.44 percent to Rs 240
  • BPCL gained 2.15 percent to Rs 295

Passenger car sales rise 0.4 percent YoY in October to 1.85 lakh units, data released by Society of Indian Automobile Manufacturers (SIAM) showed.

October auto sales

  • Passenger vehicles: 2.84 lakh units, up 1.55% YoY
  • Commercial vehicles: 87,147 units, up 24.82% YoY
  • Three wheelers: 69,483, Up 12.86% YoY
  • Two wheelers: 20.53 lakh units, up 17.23% YoY

Shares of the Bengaluru-based watch and jewellery retailer rose as much as 1.12 percent to Rs 860 ahead of its September quarter earnings. A poll of analysts tracked by Bloomberg expect Titan to report net profit of Rs 367 crore, up 20 percent.

Earnings preview (Standalone Q1, YoY):

  • Net sales seen up 22.6 percent at Rs 4,143 crore versus Rs 3,378 crore
  • Ebitda seen up 24.3 percent at Rs 421 crore versus Rs 523 crore
  • Margin at 12.6 percent versus 12.5 percent
  • Profit seen up 20.3 percent at Rs 367 crore versus Rs 305 crore

Shares of the country's largest two-wheeler maker rose as much as 2.3 percent to Rs 2,956 after it launched new premium motorcycle ‘Xpulse 200T’.

The XPulse 200T is a ‘Tourer’ that offers customers modern technology in retro styling. Built to inspire touring, the XPulse 200T offers easy and comfortable riding posture thanks to its focus on ergonomics, and loading capability with its large luggage plate, Hero MotoCorp said in a press release.

Shares of the Visakhapatnam-based dredging company were locked in a ten percent upper circuit at Rs 384.10 after the cabinet cleared proposal to sell its entire stake in the company.

The Union Cabinet on Thursday approved strategic sale of government stake in Dredging Corporation of India Ltd. to consortium of four ports.

The government currently holds 73.44 percent in DCIL.

"Cabinet Committee on Economic Affairs has given in principle approval for strategic disinvestment of 100 percent Government of India's share in DCIL to consortium of 4 ports, namely Vishakhapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust and Kandla Port Trust," an official tweet said.

Bharti Airtel's Ratings May Be Downgraded to Junk by Moody's

Rupee opened higher at 72.71 per dollar against previous close of 73.00.

The local unit rose as much as 0.47 percent or 34 paise to 72.66.

On Phoenix Mills

CLSA

  • Maintained ‘Buy’; cut price target to Rs 725 from Rs 766
  • Strong September quarter; lease income, consumption climb on good mall performance.
  • New project construction to gather pace by March 2019.
  • Cut price target to adjust for rising interest rate.

HSBC

  • Maintained ‘Buy’; hiked price target to Rs 800 from Rs 770.
  • Rental income and consumption from its malls grew strongly.
  • Expect five-year rental CAGR at 17 percent led by upcoming and existing malls.
  • Residential segment recorded an uptick in sales, but still remains below estimates.

On Voltas

CLSA

  • Maintained ‘Sell’; cut price target to Rs 465 from Rs 480.
  • Weak September quarter; biggest fall in AC margins in six years.
  • Aggressive pricing, warranties, commodity and forex impacted margins.
  • Stock not ready for any negative surprises like the first half.

Jefferies

  • Maintained ‘Buy’; cut price target to Rs 715 from Rs 750.
  • Cooling segment seen confluence of negatives for cooling segment.
  • Engineering segment beaten sharply on execution and margins.
  • Management indicated that the margins of 11 percent during the first half are representative of 2018-19.

More Calls

CLSA on Dr Lal Pathlabs

  • Maintained ‘Buy’ with a price target of Rs 1,320.
  • Volume growth remains strong, but pricing saw de-growth due to expansion and promotions.
  • Kolkata operations have stabilised now and growth well ahead of company growth.
  • Volume remains single point focus which is the right strategy.

CLSA on Century Ply

  • Maintained ‘Buy’; cut price target to Rs 210 from Rs 310.
  • Crude, rupee depreciation, MDF competitive intensity impacted September quarter margins.
  • Believe worst is now behind with hedged borrowings and price hikes.
  • Cut estimates to factor in forex losses, lower margins and higher tax rate.

Who’s Meeting Whom
  • Pidilite Industries to meet Newport Asia on Nov. 12.
  • Cipla to meet State Street Global Advisors, Northcape Capital and other investors from Nov. 09-22.
  • Asian Paints to meet Newport Asia on Nov. 12.
  • Dr. Lal Pathlabs to meet Ward Ferry, Fidelity International and other investors from Nov. 09-16.

  • Nifty November futures closed trading at 10,614, premium of 16 points
  • Nifty November OI up 0.8 percent; Nifty Bank November OI up 1.2 percent.
  • Maximum open interest (OI) for November series at 11,000 Call, OI at 26.7 lakh shares.
  • Maximum OI for November series at 10,000 Put, OI at 51.4 lakh shares.

  • Info Edge: Aranda Invest (Mauritius) sold 15 lakh shares or 1.23 percent at Rs 1,370.04 each
  • Sangam Renewables: Altius Capital Fund sold 57,000 shares or 0.57 percent equity at Rs 18.95 each.
  • Uniply Industries

    • Promoter Foundation Outsourcing India sold 11 lakh shares or 0.77 percent at Rs 61.87 each.
    • Caishen Enterprise acquired 11 lakh shares 0.77 percent at Rs 61.87 each.

    Insider Trades

    • HCL Technologies promoter Vama Sundari Investments acquired 5.7 lakh shares on Nov. 02.
    • Chambal Fertilisers & Chemicals promoter Hindustan Times acquired 1.2 lakh shares from Nov. 02-06.
    • Apar Industries promoters acquired 1.2 lakh shares on Nov. 05.
    • Meghmani Organics promoters acquired 7 lakh shares from Nov. 02-05.
    • Eros International Media promoter Eros Worldwide acquired 82,700 shares on Nov. 06.

    (As reported on Nov. 06)

Aditya Birla Capital (Q2, YoY)

  • Revenue up 33.1 percent at Rs 3,590.5 crore.
  • Net profit down 12 percent at Rs 197.9 crore.
  • Fees & Commission Expense at Rs 181.2 crore versus Rs 67.7 crore.
  • Premium up 39 percent at Rs 1,657 crore.
  • AAUM up 11 percent at Rs 2.71 lakh crore.
  • Lending Book up 30 percent at Rs 57,945 crore.

Manappuram Finance (Q2, YoY)

  • Net Interest Income up 19 percent at Rs 697.1 crore.
  • Net profit up 39 percent at Rs 222.2 crore.
  • Gold Loan segment revenue up 18.9 percent at Rs 868.9 crore.
  • Microfinance segment revenue up 45 percent at Rs 158.6 crore.

Camlin Fine Sciences (Q2, YoY)

  • Revenue up 37.8 percent at Rs 201.3 crore.
  • Net profit at Rs 1.3 crore versus Net loss of Rs 4.1 crore.
  • Ebitda up 4.3 times at Rs 17.2 crore.
  • Margin at 8.5 percent versus 2.7 percent.

MRF (Q2, YoY)

  • Revenue up 9.4 percent at Rs 3,928.2 crore.
  • Net profit down 12.3 percent at Rs 263 crore.
  • Ebitda down 4.1 times at Rs 581.1 crore.
  • Margin at 14.8 percent versus 16.9 percent.
  • Other expenses at Rs 691.1 crore versus Rs 561.7 crore.

Aban Offshore (Q2, YoY)

  • Revenue down 33.2 percent at Rs 219.8 crore.
  • Net loss at Rs 38.1 crore versus net loss of Rs 27.8 crore.
  • Ebitda loss at Rs 388.3 crore versus Ebitda loss of Rs 234.3 crore.
  • Other Income at Rs 63.8 crore versus Rs 17.6 crore.

Pricol (Q2, YoY)

  • Revenue up 16.1 percent at Rs 369.4 crore.
  • Net profit down 59.1 percent at Rs 2.9 crore.
  • Ebitda down 7.8 percent at Rs 28.5 crore.
  • Margin at 7.7 percent versus 9.7 percent.
  • Other operating income includes income from sale of land at Rs 11.8 crore.

Nifty Earnings To Watch
  • Titan

Other Earnings To Watch

  • Amara Raja Batteries
  • Eid Parry
  • Fortis Malar Hospitals
  • Goodricke Group
  • Healthcare Global Enterprises
  • Hindustan Aeronautics
  • Igarashi Motors
  • India Cements
  • Indian Bank
  • India Energy Exchange
  • Kennametal India
  • Mold-Tek Packaging
  • Shankara Building Products
  • Sobha
  • V.S.T Tillers Tractors
  • Fertilizers And Chemicals Travancore
  • Vimta Labs

  • Bharti Airtel: Moody’s placed the telecom operator’s current rating of Baa3 on review for downgrade, primarily driven by its expectation that the company’s cash generation will remain weak and leverage at an elevated level. The review will focus on plans to substantially reduce debt levels significantly over a short period of time, and on turnaround of Indian mobile operations. The company refuted news reports of a delay in listings its Tanzanian subsidiary.
  • Fortis Healthcare’s CEO Bhavdeep Singh resigned from his post. Singh will remain in the company till a successor has been found.
  • Mphasis to acquire U.S.-based Stelligent Systems for $25 million. Stelligent is a technology services company that provides DevOps Automation in Amazon Web Services (AWS).
  • Dredging Corp: Cabinet approved divestment of entire government stake of 73.47 percent. A consortium of 4 ports will buy out the government’s stake.
  • NMDC lease deed for Donimalai Mine renewed for 20 years by Karnataka State Government for 20 years with effect from Nov. 04.
  • Power Grid’s board approved three investment projects for system strengthening and communications scheme for Rs 911.43 crore.
  • Hero MotoCorp released new premium motorcycle ‘Xpulse 200T’.
  • Eris Lifesciences increased stake by 6.71 percent stake in Kinedex , post the acquisition the holding of the company has increased to 82.19 percent. The total consideration for this transaction was Rs 10.7 crore.
  • Manappuram Finance’s board approved equity infusion of Rs 100 crore in Home Finance arm and Rs 150 crore in micro finance arm.
  • GAIL awarded contracts worth Rs 1,100 crore for feeder gas pipeline project in Assam. This move will fast-track the implementation of the Barauni-Guwahati pipeline which will connect the north-east with the national gas grid.
  • JSW Steel’s crude steel production in October was up 8 percent at 14.47 lakh tonne versus 13.43 lakh tonne on year-on-year basis.
  • Glenmark Pharma launched Phase 1 trial for its Bispecific Antibody, aimed to cure solid tumors.
  • Majesco entered into an agreement with Indonesia-based PT PFI Mega Life Insurance to develop management solutions.
  • Government of India increased stake in Punjab National Bank by 5.83 percent to take its shareholding to 71.92 percent.
  • Goa Carbon October sales at 11,730.6 metric tonne and production at 10,987.6 metric tonne. The production was worth Rs 31.3 crore.
  • MRF reappointed KM Mammen as the managing director of the company till February 2019.

Here are some key events coming up this week:

  • Chinese factory-gate price gains may have dropped for a fourth straight month in October on U.S. tariffs and a slowing economy, according to forecasts ahead of Friday’s release. PPI is predicted to rise 3.3 percent year-on-year, compared with September’s 3.6 percent. CPI is expected to hold at 2.5 percent on a smaller advance in food prices.
  • The U.K. economy probably picked up in the third quarter, economists forecast. GDP is seen rising 0.6 percent from the prior period and 1.5 percent on the year.

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