Sensex Hits Fresh High After One-Day Blip

Indian equity benchmark S&P BSE Sensex resumed record close after a one-day blip.

The 31-share index rose 0.55 percent to close at an all-time high at 40,469.78. The NSE Nifty 50 rose 0.41 percent to end at 11,966.05. The broader markets represented by the NSE Nifty 500 Index rose 0.28 percent.

The market breadth, however, was tilted in favour of sellers. About 931 stocks declined and 867 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Realty Index’s 2.3 percent gain. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral loser, down 0.9 percent.

Sun Pharma Advanced Research

• Stock rose as much as 11.2 percent, the most since Oct 30, 2019, to Rs 158.50.
• The company signed pact to grant a unit of China Medical System Holdings an exclusive license to develop and sell multiple products in Mainland China, Hong Kong, Macao and Taiwan.

CG Power and Industrial Solutions

• Stock rose as much as 4.9 percent to Rs 16.
• Unit bags $24 million order from Indonesian state utility PT PLN Indonesia (Persero) for Power Transformers.

Lakshmi Vilas Bank

• Stock rose as much as 4.8 percent to Rs 18.60.
• About 13 lakh shares of Lakshmi Vilas Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known.

Torrent Power

• Stock rose as much as 2.4 percent to Rs 1,835
• Revenue rose 11.5 percent to Rs 3,842 crore.
• Net profit rose 83 percent to Rs 754.4 crore.
• Ebitda rose 6.9 percent to Rs 1055 crore.
• Margin stood at 27.5 percent versus 28.6 percent.
• Deferred tax reversal of Rs 318.3 crore in current quarter.

Canara Bank (Q2, YoY)

• Stock rose as much as 2.9 percent to Rs 212.70.
• Net interest income down 4.61 percent to Rs 3,129.76 crore.
• Net profit up 21.8 percent to Rs 364.92 crore (Estimate Rs 217 crore)
• Gross NPAs at 8.68 percent versus 8.77 percent (QoQ)
• Net NPAs at 5.15 percent versus 5.35 percent (QoQ)
• Provisions at Rs 2,037.97 crore versus Rs 2,835.14 crore (YoY), Rs 18,99.13 crore (QoQ)
• Other income at Rs 2,069.59 crore versus Rs 1,555.31 crore (YoY)
• Operating income at Rs 2,544.61 crore versus Rs 2,327.38 crore (YoY)
• Tax rate at 27.9 percent versus 39 percent (QoQ)

Radico Khaitan (Q2, YoY)

• Stock fell as much as 6.1 percent to Rs 332.45.
• Net profit up 57 percent to Rs 79.9 crore.
• Net sales up 10 percent to Rs 570 crore.
• Ebitda down 5.4 percent to Rs 86.9 crore.
• Margin at 15.2 percent versus 17.7 percent.

Exide (Q2, YoY)

• Stock fell as much as 2.3 percent to Rs 184.45.
• Revenue up 4 percent to Rs 3,778.5 crore.
• Net profit up 15.6 percent to Rs 247.2 crore.
• Ebitda up 34.5 percent to Rs 412 crore.
• Margin at 10.9 percent versus 8.4 percent.

Bajaj Electricals (Q2, YoY)

• Stock fell as much as 8.4 percent to Rs 350.
• Revenue down 31.5 percent to Rs 1,095.7 crore.
• Net loss at Rs 32.4 crore versus net profit of Rs 30.2 crore.
• Ebidta down 69.4 percent to Rs 23.9 crore.
• Margin at 2.2 percent versus 4.9 percent.

Lupin (Q2, YoY)

• Stock rose as much as 4.3 percent to Rs 487.95.
• Revenue up 10 percent to Rs 4,360 crore (Estimate Rs 4,396 crore)
• Net loss at Rs 127 crore versus of Rs 266 crore (Estimate Rs 295 crore profit)
• Ebitda up 33 percent to Rs 730 crore (Estimate Rs 775 crore)
• Margin at 16.7 percent versus 13.9 percent (Estimate 17.6 percent)
• One-time loss of Rs 546 crore.

Shares of Cipla rose as much as 4.3 percent to Rs 487.95 after the company announced its September quarter results.

Key Earnings highlights (Q2, YoY)

• Revenue up 9 percent to Rs 4395 crore (Estimate Rs 4,188 crore)
• Net profit up 25 percent to Rs 471 crore (Estimate Rs 404 crore)
• Ebitda up 29 percent to Rs 909 crore (Estimate Rs 816 crore)
• Margin at 20.7 percent versus 17.5 percent (Estimate 19.5 percent)

The 30-stock benchmark registered a fresh high of 40,543.10 in the afternoon trade, led by a rally in Yes Bank and ICICI Bank.

The NSE Nifty 50 rose 0.61 percent to 11,938.50. The market breadth was in favour of buyers. Around 910 stocks rose while 833 stocks declined.

Shares of the consumer goods maker rose over 5 percent intraday to Rs 758 apiece. The firm reported its September quarter earnings on Wednesday.

• Revenue down 1 percent at Rs 2630 crore.
• Net profit fell 28 percent to Rs 414 crore.
• Ebitda rose 17.7 percent to Rs 571 crore.
• Ebitda margin t 21.7 percent versus 18.2 percent.
• Domestic volume growth at 7 percent.
• Profit lower by 28 percent owing exceptional gain of Rs 259 crore in base quarter.

The trading volume was three times the 20-day average for this time of the day, Bloomberg data showed.

Indian equity benchmarks pared losses, led by the gains in Infosys Ltd.

The S&P BSE Sensex rose 0.2 percent to 40,335.34 and the NSE Nifty 50 rose 0.18 percent to 11,938.50.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.43 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 2.58 percent.

Nifty’s 11,900 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Thursday, fell 52.61 percent to Rs 31.75. Over 18.62 lakh shares were added to the open interest which stood at over 36.78 lakh shares.

Supreme Court Says

• Insolvency resolution process for Jaypee Infratech will have to be completed within 90 days from today.
• Bids of Suraksha Realty and NBCC will be considered by the CoC in Jaypee Infratech insolvency case.
• After the Supreme Court order, Jaiprakash Associates cannot participate in Jaypee Infratech insolvency process.

About 20 lakh shares of SBI changed hands in two large trades, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Aurobindo Pharma fell as much as 2.4 percent to Rs 462.65.

The U.S. FDA issued Form 483 to the company with four observations after inspecting its Hyderabad facilities, the drugmaker said in a stock exchange filing.

Form 483 is used by the FDA to document and communicate concerns discovered during plant inspections.

“We believe that these observations are related to procedural improvements and none of the observations are related to data integrity. The Company will be responding to the U.S. FDA as per the prescribed timeline,” Aurobindo Pharma added.

Tech Mahindra (Q2, QoQ)

• Stock rose as much as 1.4 percent to Rs 784.
• Revenue rose 4.8 percent to Rs 9,069.9 crore.
• Net profit rose 17.2 percent to Rs 1,123.9 crore.
• EBIT rose 16.8 percent to Rs 1,159.4 crore.
• Margin stood at 12.8 percent versus 11.5 percent.

Jindal Steel & Power (Q2, YoY)

• Stock fell as much as 3.9 percent to Rs 128.75.
• Revenue fell 10.4 percent to Rs 8,939.5 crore.
• Net loss stood at Rs 300.5 crore versus net Profit of Rs 343.7 crore.
• Ebitda fell 25.6 percent at Rs 1,641.6 crore.
• Margin stood at 18.4 percent versus 22.1 percent.

Ajanta Pharma (Q2, YoY)

• Stock rose as much as 3.3 percent to Rs 1,035.
• Revenue rose 18.1 percent to Rs 6,42.8 crore.
• Net profit fell 7.2 percent to Rs 1,16.4 crore.
• Ebitda rose 6.9 percent to Rs 177.6 crore.
• Margin stood at 27.6 percent versus 30.5 percent.

Gujarat Gas (Q2, YoY)

• Stock rose as much as 4.8 percent to Rs 215.
• Revenue rose 27.9 percent to Rs 2,513 crore.
• Net profit rose 12 times to Rs 517.3 crore.
• Ebitda rose 2.3 times to Rs 370.7 crore.
• Margin stood at 14.8 percent versus 8.2 percent.

Divi's Laboratories (Q2, YoY)

• Stock fell as much as 2.7 percent to Rs 1,641.
• Revenue rose 9.2 percent to Rs 1,445.6 crore.
• Net profit fell 11.6 percent to Rs 356.8 crore.
• Ebitda fell 5.9 percent to Rs 490.6 crore.
• Margin stood at 33.9 percent versus 39.4 percent.
• Other Income fell 42 percent to Rs 47 crore.

Torrent Power (Q2, YoY)

• Stock rose as much as 3.8 percent to Rs 290.85
• Revenue rose 11.5 percent to Rs 3,842 crore.
• Net profit rose 83 percent to Rs 754.4 crore.
• Ebitda rose 6.9 percent to Rs 1055 crore.
• Margin stood at 27.5 percent versus 28.6 percent.
• Deferred Tax Reversal of Rs 318.3 crore in current quarter.

Cholamandalam Investment (Q2, YoY)

• Stock fell as much as 5.8 percent to Rs 298.15.
• Net interest income rose 17 percent to Rs 864.3 crore.
• Net Profit rose 1 percent to Rs 307 crore.

Shares of Sun Pharma Advanced Research Company rose as much as 11.2 percent, the most since Oct 30, 2019, to Rs 158.50.

The company signed pact to grant a unit of China Medical System Holdings an exclusive license to develop and sell multiple products in Mainland China, Hong Kong, Macao and Taiwan ,the company said in a statement

The licensing deal covers Xelpros, Elepsia, Taclantis and two eye drops. The initial term of the agreement will be 20 years from the date of first commercial sale of each product in the territory which may be further extended.

According to the agreement, the Indian drug maker is eligible to receive upfront payment, milestone payments and royalty on net sales of the products.

About 13 lakh shares of Lakshmi Vilas Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of India’s largest jewellery maker fell as much as 9.3 percent, the most since July 9, to Rs 1,165.

The company’s September quarter profit missed estimates as employee benefit expenses and finance costs rose.

Besides, it lowered the jewellery sales growth to 11-13 percent for the second half of the current financial year from 20 percent earlier, Titan said in the earnings call.

Key Earnings Highlights (Q2, YoY)

• Revenue rose 0.7 percent to Rs 4,435 crore.
• Net profit rose 1.9 percent at Rs 320 crore.
• Ebitda rose 10 percent at Rs 513 crore.
• Margin stood at 11.6 percent versus 10.6 percent.

Indian equity benchmarks opened lower, extending declines for the second consecutive trading session.

The S&P BSE Sensex fell 0.19 percent to 40,180 and the NSE Nifty 50 fell 0.2 percent to 11,894.10. The broader markets represented by the NSE Nifty 500 Index fell 0.17 percent.

The market breadth, however, was tilted in favour of buyers. About 754 stocks advanced and 671 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 0.57 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 1.4 percent.

Index Futures

• Nifty November futures closed at 11956, premium of 38.8 points.
• Nifty November Futures open interest up 3 percent, adds 4.2 lakh shares in open interest.
• Nifty Bank November futures closed at 30,294, premium of 74.3 points versus 62.9 points.
• Nifty Bank November futures series open interest up 6 percent, adds 60.6k shares in open interest.

Options

• Nifty PCR at 1.34 versus 1.43 (across all series).

Nifty Weekly Expiry: Nov. 7

• Max open interest on call side at 12,000 (30.4 lakh shares).
• Max open interest on put side at 11,900 (22 lakh shares).
• open interest addition seen at 11,700P (+6.9 lakh shares), 12,000C (+5.8 lakh shares).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (18.3 lakh shares).
• Max open interest on put side at 11,600 (19.1 lakh shares).

• Supreme Industries to meet Birla AMC, Impax and other investors on Nov. 7.
• ACC to meet Franklin Templeton Investment on Nov. 6.
• PI Industries to meet Axis Capital, William Blair and other investors from Nov. 6-25.
• Escorts to meet Somerset Capital, Lucky Securities and other investors from Nov. 6-19.

The Indian rupee opened lower against the U.S. dollar the home currency depreciated as much as 0.16 percent to 70.80 against the greenback.

Indian equity benchmarks are set for a muted start.

The S&P BSE Sensex rose 0.2 percent to 40,333.94 during the pre-market trade and the NSE Nifty 50 rose 0.37 percent to 11,960.

• Tech Mahindra to acquire strategy agency Born Group for $95 million. The transaction is expected to be closed by Nov. 15.
• Sun Pharma Advanced Research signed pact to grant a unit of China Medical System Holdings an exclusive license to develop and sell multiple products in Mainland China, Hong Kong, Macao and Taiwan. The licensing deal covers Xelpros, Elepsia, Taclantis and two eye drops. The initial term of the agreement will be 20 years from the date of first commercial sale of each product in the territory which may be further extended. According to the agreement, the Indian drug maker is eligible to receive upfront payment, milestone payments and royalty on net sales of the products.
• Hero MotoCorp: Board approved investment of Rs 450 crore in its associate company Hero FinCorp via private placement of shares.
• Zee Entertainment Enterprises: Board has approved in principle, the reappointment Punit Goenka as Managing Director and Chief Executive Officer of the company till January 2025.
• Bank of Baroda has revised MCLR across various tenors with effect from November 7. One-month MCLR at 7.85 percent and one-year MCLR at 8.3 percent.
• Motherson Sumi: Moody's has affirmed "Baa3 rating" and has revised outlook to 'Negative' from 'Stable' for the company. “The negative outlook principally reflects the weak performance of Motherson's greenfield operations as well as slowing global auto sales, and concerns around timely recovery in auto sector,” it said.
• Vedanta: Vedanta Resources long-term rating was downgraded by S&P to ‘B’ from ‘B+’ and outlook changed to Stable from Negative, according to Bloomberg report.
• Max India: Shareholders approved the merger of healthcare assets of Max India into Max Healthcare and demerger of residual businesses of Max India into Advaita, a wholly owned subsidiary of Max India. Merger expected to be completed by end of fiscal year 2020. Transaction will result in 2 listed companies – Max Healthcare and a new ‘Max India’ entity.
• J&K Bank applied to the Securities Exchange Board of India for grant of extension for the quarterly results in the stipulated timeline of 45 days along with the waiver of penalty for delay in the submission of reviewed financial results till Dec. 15. The bank has approached RBI through State Level Banker’s Committee for a special dispensation addressing the issue of temporary asset impairment due to prevailing situation in J&K since Aug. 5. Proposal in under consideration at the Reserve Bank of India.
• PI Industries’ arm executed a share purchase agreement to 100 percent stake in Isagro (Asia)Agrochemicals for Rs 345 crore. Long stop date for this transaction is chosen as Jan. 31 next year.
• Jubilant Life Sciences: India Rating and Research placed rating as Rating Watch Evolving for facilities worth Rs 2535 crore post the Board’s approval for re-organisation of the businesses of the Company by demerger of Life Science Ingredients business.
• Allcargo Logistics said that the scheme of merger of Allcargo Shipping with the company has been made effective on and from November 5. The National Company Law Tribunal had approved this scheme on Sept. 27.
• Piramal Enterprises: NCLT Mumbai has approved amalgamation of Piramal Phytocare with the company itself.
• Piramal Phytocare: Ankit Kotak has resigned from the post of Chief Financial Officer with effect from Nov. 5.
• Future Consumer said that 46.29 percent stake is held by the promoters out of which 78.39 percent stake are encumbered shares.
• Future Retail said that 47.02 percent stake is held by the promoters out of which 72.63 percent stake are encumbered shares.
• CG Power and Industrial Solutions’ arm had bagged $24 million order from Indonesian state utility PT PLN Indonesia (Persero) for Power Transformers.
• Mahindra Lifespace Developers’ JV with HDFC Real Estate Fund has executed a deed for acquisition of land parcel in Mumbai Metropolitan Region in Thane having residential development potential of up to 0.84 million sq.feet.
• Aditya Birla Fashion and Retail: Board to consider raising funds via non-convertible debentures up to Rs 500 crore, on or after Nov. 8.
• Kaveri Seed record date for share buyback set as Nov. 22.
• Quess Corp has completed the acquisition of 30 percent stake in GSFS.
• Force Motors October Sales down 3 percent at 2,133 units versus 2,202 units .
• VST Tillers Tractors October Sales: Power Tillers up 6 percent at 1,104 units versus 1,046 units. Tractors up 3 percent at 857 units versus 833 units.
• Godrej Industries to consider raising capital via issue of debt securities on Nov. 12.
• Sagar Cements October Sale down 24.7 percent at 2,50,515 MT versus 2,79,553 MT.

Nifty Earnings To Watch

• Cipla
• Tata Steel

Other Earnings To Watch

• Indiabulls Housing Finance
• Lupin
• V-Guard Industries
• Voltas
• Somany Ceramics
• Bosch
• Brigade Enterprises
• BSE
• Canara Bank
• Emami
• Alkyl Amines Chemicals
• Avadh Sugar & Energy
• Bajaj Electricals
• Corporation Bank
• EID Parry India
• Prataap Snacks
• Radico Khaitan
• Emami
• Taj GVK Hotels & Resorts
• Exide Industries
• Religare Enterprises
• Firstsource Solutions
• Fortis Healthcare
• Godrej Consumer Products
• Gujarat Borosil
• Hester Biosciences
• Hindustan Oil Exploration
• Honda Siel Power Products
• Kalpataru Power Transmission
• Linc Pen & Plastics
• Manappuram Finance
• MAS Financial Services
• Minda Corporation
• Munjal Showa
• Nitco
• Prakash Industries
• Schneider Electric
• Shipping Corporation Of India
• Siti Networks
• Take Solutions
•   Triveni Turbine
• UFO Moviez
• KDDL

Earnings Reaction To Watch

Titan (Q2, YoY)

• Revenue rose 0.7 percent to Rs 4,435 crore.
• Net profit rose 1.9 percent at Rs 320 crore.
• Ebitda rose 10 percent at Rs 513 crore.
• Ebitda margin stood at 11.6 percent versus 10.6 percent.
• Jewellery growth guidance cut from 20 percent to 11-13 percent.

Tech Mahindra (Q2, QoQ)

• Revenue rose 4.8 percent to Rs 9,069.9 crore.
• Net profit rose 17.2 percent to Rs 1,123.9 crore.
• EBIT rose 16.8 percent to Rs 1,159.4 crore.
• Margin stood at 12.8 percent versus 11.5 percent.

Jindal Steel & Power (Q2, YoY)

• Revenue fell 10.4 percent to Rs 8,939.5 crore.
• Net loss stood at Rs 300.5 crore versus net Profit of Rs 343.7 crore.
• Ebitda fell 25.6 percent at Rs 1,641.6 crore.
• Margin stood at 18.4 percent versus 22.1 percent.

Ajanta Pharma (Q2, YoY)

• Revenue rose 18.1 percent to Rs 6,42.8 crore.
• Net profit fell 7.2 percent to Rs 1,16.4 crore.
• Ebitda rose 6.9 percent to Rs 177.6 crore.
• Margin stood at 27.6 percent versus 30.5 percent.

Gujarat Gas (Q2, YoY)

• Revenue rose 27.9 percent to Rs 2,513 crore.
• Net profit rose 12 times to Rs 517.3 crore.
• Ebitda rose 2.3 times to Rs 370.7 crore.
• Margin stood at 14.8 percent versus 8.2 percent.

Divi's Laboratories (Q2, YoY)

• Revenue rose 9.2 percent to Rs 1,445.6 crore.
• Net profit fell 11.6 percent to Rs 356.8 crore.
• Ebitda fell 5.9 percent to Rs 490.6 crore.
• Margin stood at 33.9 percent versus 39.4 percent.
• Other Income fell 42 percent to Rs 47 crore.

Torrent Power (Q2, YoY)

• Revenue rose 11.5 percent to Rs 3,842 crore.
• Net profit rose 83 percent to Rs 754.4 crore.
• Ebitda rose 6.9 percent to Rs 1055 crore.
• Margin stood at 27.5 percent versus 28.6 percent.
• Deferred Tax Reversal of Rs 318.3 crore in current quarter.

Cholamandalam Investment (Q2, YoY)

• Net Interest Income rose 17 percent to Rs 864.3 crore.
• Net Profit rose 1 percent to Rs 307 crore.

• U.S. equities hovered near record highs on Tuesday before closing mostly lower as investors digested the latest earnings and economic data while awaiting more news about trade talks between America and China.
• Crude climbed to the highest level in six weeks. Futures rose 1.2 percent in New York on Tuesday.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.23 percent to 11,934 as of 8:30 a.m.

Stocks in Asia traded mixed as investors weighed signs of improvement in U.S. economic data against conflicting news flow on Sino-American trade discussions.

Stocks were little changed in Tokyo, Shanghai and Sydney. While the shares edged higher in Seoul, they slipped in Hong Kong.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.