Share Market Today: Sensex, Nifty Decline; FPIs Stay Net Buyers
Sensex closed 0.25% lower at 61,033.55, while the Nifty 50 ended 0.44 % lower at 18,122.05.
KEY HIGHLIGHTS
Foreign Investors Net Buyers
Overseas investors remained net buyers for the ninth day in a row on Wednesday.
As per data from the National Stock Exchange, foreign portfolio investors net bought equities worth Rs 386.83 crore.
Similarly, Domestic institutional investors remained net sellers and sold equities worth Rs 1,060.12 crore.
Institutions have net bought Rs 3,202.17 crore worth of equities so far in November and net sold Rs 28,494.74 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Falls
Yield on the 10-year bond fell 5bps to close at 7.39%.
Source: Bloomberg
Indian Rupee Gains Nearly 50 Paise For Third Straight Day Against The U.S. Dollar
The local currency opened at 81.39, appreciating 0.64%, or 52 paise, from its close of 81.91 on Monday. During the day, it strengthened 0.85% or 69.6 paise to 81.21.
The rupee appreciated 0.59% to close at 81.42 on Wednesday. It hit its highest since September.
The rupee had hit a record low of 83.29 on Oct. 20.
Source: Bloomberg
Closing Bell
India's stock benchmarks closed lower on Wednesday led by declines in realty, consumer durables and metal stocks.
Sensex closed 0.25% lower at 61,033.55, while the Nifty 50 ended 0.44 % lower at 18,122.05.
Adani Ports SEZ, Coal India, ITC, Dr Reddy's Laboratories, Adani Enterprises were the top NIfty 50 gainers. Meanwhile, Hindalco Industries, Power Grid Corp of India, Divi's Laboratories, Grasim Industries and Sun Pharmaceutical Industries were the top laggards.
The broader indices underperformed their larger peers with MidCap and SmallCap losing 0.54% and 0.22%. While LargeCap almost mirrored its larger peers and declined 0.24%.
Fifteen of the 19 the sectoral measures complied of BSE declined with BSE consumer durables, metals and realty losing over 1%.
The market breadth is skewed in the favour of bears. About 1,740 stocks rose, 1,774 fell and 120 remained unchanged.
National Aluminium Company Slips Post Q2
Shares of National Aluminium Company fell 1.84% after company reported 83% decline in net profit.
Total traded quantity stood at 1.8 times the 30-day average. Of the 10 analysts tracking the company, seven maintain a 'buy', one suggests 'hold' and two recommend a 'sell'. The return potential of the stock is 21.2%.
National Aluminium Company (Consolidated, YoY)
Net Profit down by 83 % at Rs 125.43 crore Vs. net profit of Rs 747.80
Revenue from operations down by 2.8% at Rs 3489.57 crore Vs. 3592.18
EBITDA down by 65% at Rs 403.63 crore Vs. Rs 1169 crore
Source: Bloomberg, Exchange filings
Finolex Cables Gains After Q2 Results
Shares of Finolex Cables rose 0.43% after company reported 16% growth in revenue.
Total traded quantity stood at 2.1 times the 30-day average. Of the 9 analysts tracking the company, eight maintain a 'buy' and one suggests 'hold'. The return potential of the stock is 11%.
Finolex Cables (Consolidated, YoY)
Revenue at Rs 1,090.83 crore vs Rs 932.98 crore
Ebitda at Rs 98.65 crore vs Rs 119.59 crore
Profit at Rs 55.37 crore vs Rs 144.77 crore
Source: Bloomberg, Exchange filings
Bajaj Consumer Down After Q2 Results
Shares of Bajaj Consumer Care fell 2.77% after it Q2 earnings.
Total traded quantity stood at 3.3 times the 30-day average. Of the 12 analysts tracking the company, six maintain a 'buy', four suggest a 'hold' and two recommend a 'sell'. The return potential of the stock is 30.6%.
Bajaj Consumer (Consolidated, YoY)
Revenue up by 9% at Rs 232.4 crore vs Rs 213.2 crore
Profit down by 31.9% at Rs 31.65 crore vs Rs 46.5 crore
Source: Bloomberg, Exchange filings
European Markets Open Flat
Godrej Properties Slips Post Q2 Miss
Shares of Godrej Properties fell 2.56% after it Q2 earnings missed estimates.
Total traded quantity stood at 2.5 times the 30-day average. The price crossed below the 200 day simple moving average, indicating a potential downward price momentum.
Godrej Properties Q2FY23 (Consolidated, YoY)
Revenue from operations Rs 165.09 crore vs. Rs 129.32 crore. (Bloomberg estimate: Rs 447 crore)
Net profit Rs 54.96 crore vs. Rs 35.73 crore. (Bloomberg estimate: Rs 194 crore)
Ebitda at Rs 67.4 crore (Bloomberg estimate: Rs 66.03 crore)
Of the 37 analysts tracking the company, 30 maintain a 'buy', six suggest a 'hold' and one recommends a 'sell'. The return potential of the stock is 18.8%.
Source: Bloomberg, Exchange filings
Midday Market Update
Indian stock benchmarks traded flat as declines in consumer goods and healthcare were offset by gains in realty, telecom and energy stocks.
Sensex fell 0.15% to 61,093.82, while the Nifty 50 slipped 0.11% to 18,182.95. Of the Nifty 50 constituents, 32 stocks fell and 18 rose.
Adani Ports, Coal India, Adani Enterprises, ITC, IndusInd Bank were the top gainers on Nifty 50. While, Hindalco Industries, Divi's Laboratories, Power Grid Corp Of India, Grasim Industries and NTPC were the top laggards.
The broader indices outperformed their larger peers with SmallCap and MidCap gaining 0.08% and 0.06%, respectively.
Ten of the 19 the sectoral measures complied by BSE declined with BSE healthcare and consumer durables losing the most.
The market breadth is skewed in the favour of bulls. About 1,895 stocks rose, 1,509 fell and 151 remained unchanged.
Clove Dental Raises Rs 545 Crore In A Round Led By Investcorp
Global Dental Services, which operates 340 clinics in India under the brand Clove Dental, has raised Rs 545 crore in a funding round led by Investcorp.
Tybourne Capital and other new and existing shareholders are also investing alongside Investcorp.
Funds to be used for Clove Dental’s expansion and D2C brand called LoveMySmile.
This marks Investcorp’s fourth healthcare investment in India.
Source: Press release
IndiGo Shares Down Most In Nearly 5 Months
Shares of InterGlobe Aviation declined about 5.74%, the most since June 20, after company reported a loss for the third straight quarter.
Total traded volume is 3.3 times the 30-day average.
Of the 25 analysts tracking the company, 17 maintain a 'buy', one suggests a 'hold' and seven recommend a 'sell'. The return potential of the stock is 30.2%.
InterGlobe Aviation Q2 FY23 Highlights (YoY):
-Net loss widened to Rs 1,583.3 crore vs. Rs 1,435.7 crore a year ago.
-Revenue rose 123% to Rs 12,497.6 crore against the Rs 11,521-crore forecast.
-Ebitda rose 32.7% to Rs 229.2 crore.
-Ebitda margin stood at 1.8% versus 6.1% last year.
The company has reported losses in 10 out of the last 11 quarters.
Source: Bloomberg, Exchange Filings
Avanti Feeds Gain After U.S. FDA Lifts Alert On Shrimp
Shares of Avanti Feeds surged after the U.S. FDA lifted alert on shrimp exports to the U.S.
The stock rose 8.48% intraday, the most since May 12, and is now up 4.18%. Total traded quantity is 8 times the 30-day average.
This will enable the company's unit, Avanti Frozen Foods, to accelerate the export of value added shrimp products to the U.S.
The U.S drug regulator had imposed an alert on Mar 4, 2021, due to presence of Salmonella in the shrimp produced and exported by Avanti Frozen Foods to USA.
Of the five analysts tracking the company, all maintain a 'buy'. The 12-month consensus price target implies an upside of 67.6%.
Source: Bloomberg, Exchange filing
Jubilant FoodWorks Falls Most In 6 Weeks
Shares of Jubilant FoodWorks declined after it reported its second quarter earnings.
The stock fell 6.33% intraday- the most since Sept. 26 to trade at Rs 573.9. Total traded quantity is 6 times the 30 day average.
Of the 31 analysts tracking the company, 21maintain a 'buy', seven suggest a 'hold' and three recommend a 'sell'. The 12-month consensus price target implies an upside of 15.9%.
Jubilant FoodWorks Q2FY23 (Consolidated , YoY)
Net profit increased by 9.76% at Rs 131.52 crore.
Revenue up 16.6% at Rs 1,301.48 crore.
Expenses up 19.76% at Rs 1,153.92 crore
Source: Bloomberg, Exchange filings
Coal India Gains After Q2 Profit Beats Estimates
Shares of Coal India surged more than 3% after it swung into a quarterly profit in July-September.
Total traded volume is 6.7 times the 30-day average. The relative strength index is at 76, suggesting that it may be overbought.
Of the 26 analysts tracking the company, 20 maintain a 'buy', two suggest a 'hold' and four recommend a 'sell'. The 12-month consensus price target implies an upside of 0.4%.
Coal India Q2 FY23 (Consolidated, YoY)
Revenue up 28% at Rs 29,838 crore Vs Rs 23,291 crore (Bloomberg estimate: Rs 29250.30 crore)
Ebitda up 85% at Rs 7,280.17 crore Vs Rs 3,942.31 crore (Bloomberg estimate: Rs 8735.47 crore)
Ebitda margin 24% Vs 17% (Bloomberg estimate: 29.9%)
Net profit up 2x at Rs 6,043.55 crore Vs Rs 2,936.91 crore (Bloomberg estimate: Rs 5547.95 crore)
Coal India also announced an interim dividend of Rs 15 apiece.
Source: Bloomberg, Exchange Filings
Paytm Gains Post Q2 Results
Shares of One 97 Communications, the parent firm of Paytm, advanced on Wednesday after the company narrowed its quarterly loss in July-September.
The stock gained about 2.63% intraday. It is now 0.55% higher. Total traded volume is 2.1 times the 30-day average.
One 97 Communications Q2 FY23 (Consolidated, QoQ)
Revenue up 14% at Rs 1,914 crore Vs Rs 1,679.6 crore (Bloomberg estimate: Rs 1,860.70 crore)
Ebitda loss narrowed at Rs 537.8 crore Vs Rs 633.9 crore (Bloomberg estimate: Rs 465.57 crore)
Net loss narrowed 11% at Rs 571.5 crore Vs Rs 644.4 crore (Bloomberg estimate: Rs 606 crore)
Of the 12 analysts tracking the company, six maintain 'buy', three suggest 'hold' and three recommend 'sell'. The return potential of the stock is 33.1%.
Source: Bloomberg, Exchange filings
TVS Motor Advances On EV Deal With Amazon India
TVS Motor Co. shares gained after it inked a pact with Amazon India to scale EV deployment
The stock rose as much as 4.79% intraday. Total traded quantity is 2.8 times the 30-day average.
As part of the MoU, a fleet of electric two-wheelers and three-wheelers from TVS Motor will be deployed for Amazon’s last-mile deliveries.
In addition, the two companies will work to examine EV use cases for various Amazon business groups. In 2020, Amazon India had announced that it would include 10,000 EVs in its delivery fleet by 2025.
Of the 47 analysts tracking the company, 27 maintain 'buy', 11 suggest 'hold' and nine recommend 'sell'. The potential downside of the stock is 1.3%
Source: Bloomberg, Press release
Indigo Paints Plunges About 11%
Indigo Paints tanked about 11% intraday after a block deal.
The stock is currently trading 6% lower. Total traded volume is 124.4 times the 30-day average.
Of the eight analysts tracking the company, three maintain 'buy', one suggests 'hold' and four recommend 'sell'. The return potential of the stock is 19.9%
Indigo Paints has 11.8 lakh shares, 2.5% of equity, change hands in bunched trade.
Source: Bloomberg
10-Year Bond Yield Falls
Yield on the 10-year bond fell 5bps to 7.38% in early trade.
Source: Bloomberg
Opening Bell
India’s stock benchmarks opened higher on Wednesday led by gains in IT, consumer goods and metals as investors awaited the results from midterm election in the U.S.
Sensex gained 0.21% to 61,312. 63, while Nifty 50 rose 0.34% to open at 18,264.35.
Out of 50 of the Nifty 50 constituents, 43 stocks rose while seven fell. Coal India, Britannia Industries, Cipla, Adani Ports, Nestle India were the top gainers on Nifty 50. Hindalco, Divi's Laboratories, ONGC, PowerGrid Corp of India and HDFC were the top laggards.
The MidCap and SmallCap indices almost mirrored its larger peers, gaining 0.19% and 0.28%, respectively.
Fifteen of the 19 sectoral indices compiled by BSE Ltd. advanced with maximum gains in FMCG, Industrials and Realty indices.
The market breadth was skewed in favour of the bulls. About 1,828 stocks rose, 917 fell and 129 remained unchanged.
Rupee Appreciates Against U.S Dollar
Indian currency appreciated by 52 paise to 81.39 at the open against the greenback on Wednesday. It closed at 81.91 on Monday.
Source: Bloomberg
Trade Setup
China’s CPI In October Rises 2.1%
China's consumer price index rose 2.1% year-on-year in October, lower than the estimated 2.4% and 2.8% in September.
Source: China’s National Bureau of Statistics
Global Cues
U.S. Dollar Index at 109.63
U.S. 10-year bond yield at 4.13% on Tuesday
Brent crude down 2.6% to $95.36 per barrel
Nymex crude at $88.79 per barrel
SGX Nifty up 0.24% to 18,392 as of 6:13 a.m.
Bitcoin fell 1.03% to $18,505.76.
Earnings To Watch
3M India, Action Construction Equipment, Authum Investment & Infrastructure, Allcargo Logistics, APL Apollo Tubes, Astra Microwave Products, Balrampur Chini Mills, Barbeque-Nation Hospitality, BEML, Borosil Renewables, Deepak Nitrite, Engineers India, Finolex Cables, Galaxy Surfactants, Gateway Distriparks, General Insurance Corporation of India, Godrej Properties, Gujarat State Fertilizers & Chemicals, Gujarat Alkalies & Chemicals, H.G. Infra Engineering, Hikal, HLE Glascoat, Ion Exchange (India), KIOCL, Kiri Industries, Lupin, Max Ventures and Industries, National Aluminium Co., Narayana Hrudayalaya, Nuvoco Vistas Corporation, Orient Cement, Piramal Enterprises, Petronet LNG, POWERGRID Infrastructure Investment Trust, Pidilite Industries, Prestige Estates Projects, Prince Pipes and Fittings, Quess Corp, The Ramco Cements, Rhi Magnesita India, Rolex Rings, Seamec, Shyam Metalics and Energy, Star Health and Allied Insurance Company, Sudarshan Chemical Industries, Tata Motors, Tata Motors – DVR, TeamLease Services, Venky's (India), Westlife Foodworld
Stocks To Watch
Punjab & Sind Bank: The lender appointed Charan Singh as non-executive chairman and non-official director for a period of two years from the date of notification of his appointment or until further orders.
Punjab National Bank: The government-run bank appointed KG Ananthakrishnan as non-executive chairman and part-time non-official director for three years from the date of notification of his appointment or until further orders.
Canara Bank: The central government appointed Vijay Srirangan as non-executive chairman and part-time non-official director for a term of three years from the date of notification or until further orders.
Bharat Electronics: The company signed an MoU with Delhi Metro Rail Corporation for jointly developing the Indigenous Communication-based Train Control System. The company also confirmed, n response to a clarification sought by exchanges, that it has signed an MoU with Motorola Solutions India for cooperation in the field of broadband, push-to-talk service.
Life Insurance Corporation of India: The insurer has increased its sharing in Voltas to 8.88% from 6.86%.
Hindustan Aeronatics: CB Ananthakrishnan, Director (Finance) of the company, will hold the additional post of Chairman and Managing Director up to Nov. 30, 2022, or till further orders.
ICICI Prudential Life Insurance: October business update (YoY)
-New business premium increased 4.7% on-year to Rs 1,208 crore during the month.
-New business sum assured rose 35.8% to Rs 76,871 crore.
-Annualised premium equivalent declined 16% Rs 521 crore.
Earnings Post Market Hours
Jubilant FoodWorks Q2FY23 (Consolidated , YoY)
Net profit increased by 9.76% at Rs 131.52 crore.
Revenue up 16.6% at Rs 1,301.48 crore.
Expenses up 19.76% at Rs 1,153.92 crore
Bajaj Electricals Q2FY23 (Consolidated , YoY)
Net profit fell to Rs 62 crore versus Rs 62.55 crore
Net sales slipped 6.41% to Rs 1,201.14 crore.
Expenses fell 6.81% to Rs 1,159.22 crore.
Revenue down by 2.45% at Rs 882.87 crore.
MRF Q2FY23 (Consolidated , YoY)
Net profit declined 32% to Rs 130 crore.
Revenue rose to Rs 5,826 crore Vs Rs 4,908 crore
Expenses up 21% at Rs 5,730 crore.
Godrej Consumer Products Q2 FY23 Highlights (YoY)
Revenue rose 7% to Rs 3,391.92 crore.
Operating profit fell 18% to Rs 542.11 crore.
Margin came in at 16% against 20.8%
Total expenses rose 14% to Rs 2,951.38 crore
Bharat Petroleum Corporation Q2 FY23 Results (Consolidated QoQ)
Revenue from operations declined 7% to Rs 1,28,355.7 crore, compared with Bloomberg estimate of Rs 1,13,455 crore
Ebitda at Rs 1,414.89 crore versus Ebitda loss of Rs 5824.14 crore (Bloomberg estimate: Rs 5,564.6 crore (Ebitda loss)
Ebitda margin at 1.2%
Net loss narrowed to Rs 338.49 crore versus Rs 6,147.94 crore (Bloomberg estimate: Rs 2,240 crore)
One 97 Communications Q2 FY23 (Consolidated, QoQ)
Revenue up 14% at Rs 1,914 crore Vs Rs 1,679.6 crore (Bloomberg estimate: Rs 1,860.70 crore)
Ebitda loss narrowed at Rs 537.8 crore Vs Rs 633.9 crore (Bloomberg estimate: Rs 465.57 crore)
Net loss narrowed 11% at Rs 571.5 crore Vs Rs 644.4 crore (Bloomberg estimate: Rs 606 crore)
PB Fintech Q2 FY23 (Consolidated, QoQ)
Revenue up 14% at Rs 573 crore Vs Rs 505 crore (Bloomberg estimate: Rs 523.75 crore)
Ebitda loss narrowed 4% at Rs 226 crore Vs Rs 234.4 crore (Bloomberg estimate: Rs 211.8 crore)
Net loss narrowed 9% at Rs 186.63 crore Vs Rs 204.33 crore (Bloomberg estimate: Rs 169.90 crore)
Affle (India) Q2 FY23 (Consolidated, QoQ)
Revenue up 2% at Rs 355 crore Vs Rs 347 crore (Bloomberg estimate: Rs 356.20 crore)
Ebitda up 3% at Rs 70.69 crore Vs Rs 68.5 crore (Bloomberg estimate: Rs 71.37 crore)
Ebitda margin flat 20% (Bloomberg estimate: 20%)
Net profit up 8% at Rs 58.67 crore Vs Rs 54.53 crore (Bloomberg estimate: Rs 57.63 crore)
CERA Sanitaryware Q2 FY23 (Consolidated, YoY)
Revenue up 6% at Rs 416 crore Vs Rs 394 crore (Bloomberg estimate: Rs 416.52 crore)
Ebitda up 14% at Rs 67.92 crore Vs Rs 59.78 crore (Bloomberg estimate: Rs 64.48 crore)
Ebitda margin 16% Vs 15% (Bloomberg estimate: 15.5%)
Net profit up 19% at Rs 51.13 crore Vs Rs 42.97 crore (Bloomberg estimate: Rs 44.56 crore)
Privi Speciality Chemicals Q2 FY23 (Consolidated, YoY)
Revenue up 42% at Rs 409 crore Vs Rs 289 crore
Ebitda up 22% at Rs 46.91 crore Vs Rs 38.35 crore
Ebitda margin 11% Vs 13%
Net profit fell 23% at Rs 11.31 crore Vs Rs 14.72 crore
Coal India Q2 FY23 (Consolidated, YoY)
Revenue up 28% at Rs 29,838 crore Vs Rs 23,291 crore (Bloomberg estimate: Rs 29250.30 crore)
Ebitda up 85% at Rs 7,280.17 crore Vs Rs 3,942.31 crore (Bloomberg estimate: Rs 8735.47 crore)
Ebitda margin 24% Vs 17% (Bloomberg estimate: 29.9%)
Net profit up 2x at Rs 6,043.55 crore Vs Rs 2,936.91 crore (Bloomberg estimate: Rs 5547.95 crore)
Endurance Technologies Q2 FY23 (Consolidated, QoQ)
Revenue up 12% at Rs 2,361 crore Vs Rs 2,114 crore (Bloomberg estimate: Rs 2,269.71 crore)
EBIT up 23% at Rs 172.32 crore Vs Rs 140.6 crore
EBIT margin flat 7%
Net profit up 27% at Rs 131.4 crore Vs Rs 103.3 crore (Bloomberg estimate: Rs 139.03 crore)
KEC International Q2 FY23 (Consolidated, YoY)
Revenue up 13% at Rs 4,064 crore Vs Rs 3,587 crore (Bloomberg estimate: Rs 3,968.88 crore)
Ebitda fell 30% at Rs 177.95 crore Vs Rs 252.96 crore (Bloomberg estimate: Rs 245.4 crore)
Ebitda margin 4% Vs 7% (Bloomberg estimate: 6.2%)
Net profit fell 31% at Rs 55.24 crore Vs Rs 80.29 crore (Bloomberg estimate: Rs 85.08 crore)
Sansera Engineering Q2 FY23 (Consolidated, YoY)
Revenue up 17% at Rs 634 crore Vs Rs 540 crore (Bloomberg estimate: Rs 510 crore)
Ebitda flat at Rs 106.06 crore (Bloomberg estimate: Rs 87.8 crore)
Ebitda margin 17% Vs 20% (Bloomberg estimate: 17.2%)
Net profit fell 10% at Rs 45.9 crore Vs Rs 51.09 crore (Bloomberg estimate: Rs 32.9 crore)
BLS International Services Q2 FY23 (Consolidated, QoQ)
Revenue up 31% at Rs 357 crore Vs Rs 273 crore (Bloomberg estimate: Rs 320.6 crore)
Ebitda up 82% at Rs 56.79 crore Vs Rs 31.36 crore (Bloomberg estimate: Rs 39.3 crore)
Ebitda margin 16% Vs 11% (Bloomberg estimate: 12.3%)
Net profit up 65% at Rs 50.37 crore Vs Rs 30.47 crore (Bloomberg estimate: Rs 35.6 crore)
Recommended bonus issue in the ratio of 1:1
Sensex, Nifty Set To Rise
Stocks edged higher in Asia as investors awaited midterm election results from the U.S., with the potential for government gridlock seen as positive for equities.
The dollar held declines against most Group-of-10 currencies as trading got underway in Asia. Treasuries were steady, while bond yields fell in Australia and New Zealand, tracking moves in the U.S. overnight.
Oil steadied after a two-day decline as traders weighed the support from a weaker dollar and gold fell.
Trading in India's stock benchmarks will resume after a day's gap. The indices had advanced on Monday, aided by gains in energy, auto, and realty stocks.
At 8:30 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- rose 0.34% to 18,409.50.