Sensex, Nifty Highlights on October 21: After a volatile trading session, market indices closed bullish on Wednesday, amid mixed cues from global markets. Sensex ended 162 points higher at 40,707 and Nifty gained 40 points lower at 11,937. Yesterday, Sensex ended 112 points higher at 40,544 and Nifty gained 23 points to settle at 11,896.
Here's a look at the updates of the market action on BSE and NSE today
3. 43 PM: Closing session
After a volatile trading session, market indices closed bullish on Wednesday, amid mixed cues from global markets. Sensex ended 162 points higher at 40,707 and Nifty gained 40 points lower at 11,937.
3. 33PM: Earnings today
Bajaj Finserv, Bajaj Finance, UltraTech Cement, Syngene, GMM Pfaudler, DB Corp and Colgate Palmolive are among the top companies that will be reporting their Q2 earnings.
3. 20 PM: Nomura on HCL Tech
-Maintain BUY , Target at 970/share
-Retain Buy on attractive valuations
-Like the portfolio skew, ability to participate in digital
-Beat on revenue growth/margins, margin guidance raise
-Raise FY21 EBIT margins by 20bp led by the raise in guidance
3. 17 PM: Market outlook
S Ranganathan, Head of Research at LKP Securities said,"Indices managed to close in the Green today but not without its share of hiccups over rumours on waiver of interest on loans. Banks & Metals provided support even as we saw profit booking in several stocks during afternoon trade. Select PSU names were sought after by funds in todays volatile session".
3. 09PM: Brent crude
Brent crude futures, the global oil benchmark, rose 0.58 per cent to USD 42.91 per barrel. Crude oil prices negated on worries of slowing demand due to tighter lockdown measures to curb the rising corona virus cases. Besides, surge in production from Libya have been leading towards an oversupply in the crude oil market.
2. 53PM: ACC - 3QCY20 result update
Centrum Broking in its note said,"Cost savings from logistics are expected to continue following the MSA agreement between Ambuja Cement and ACC. The current capacities and addition in CY22-end (effective contribution from CY23) will largely take care in maintaining the market share for ACC. However, ACC has not been able to prudently weigh the benefits of external purchases of traded goods We will keenly watch the cost savings sustainability that is currently driving the performance. We have introduced our CY22 earnings estimates with EBITDA expectations of Rs30.6bn and EPS of Rs86/share. WE also revise our CY20E earnings to Rs62.4 (earlier Rs52.2) and CY21e to Rs76.6 (earlier Rs72.7) to factor ACC's 9MCY20 healthy performance. We have valued ACC rolling over to CY22 at an EV/EBITDA multiple of 8x (CY22 earnings) and revised our target prices to Rs1,616 At our TP the stock trades at Rs6.1bn/mt replacement costs based on CY22 capacities. Retain ADD rating on the stock."
2. 44PM: Rupee outlook
Commenting on Rupee, Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said," As of now, we are expecting the rupee to trade with a depreciating bias in the near-term, given RBI's persistent attempts to cap an upside in the unit. Moreover, the dollar index also has some scope to rebound from current levels, if the U.S. stimulus package does not materialize. Volatility on the local unit is expected to increase in the run-up to the U.S. elections, and the rupee could depreciate towards the 74.20 mark in the coming sessions."
2. 32 PM:Prestige Estates update
Commenting on Prestige Estates, Yash Gupta - Equity Research Associate, Angel Broking said,"Prestige Estates Projects Limited has entered into a Limited Liability Partnership agreement (LLP) with Mysore Projects Private Limited, a wholly Owned Subsidiary of Brigade Enterprises limited in Prestige OMR Ventures LLP. Prestige Estates Projects Limited and Mysore Brigade Enterprises Limited are the partners in Prestige OMR Ventures LLP in the ratio of 70% and 30% respectively. Prestige Estates Projects Limited will contribute Rs 29.12 crores for their share of 70% and Brigade Enterprises limited will contribute Rs 12.48 crores for their share of 30. This is positive development for Prestige Estates Projects Limited."
2. 29 PM: Granules India - Q2FY21 results update
Commenting on Granules India's Q2FY21 results, Centrum Broking said," GIL has 13 pending ANDA approvals and expects 7-8 filings during the fiscal along with 5-6 launches. The company will focus its efforts on inventory control and cash-to-cash cycle to sustain EBITDA margins over coming quarters levels. EBITDA margins have been replicating the benefit of improving product mix and operating efficiencies with better capacity utilization. At CMP of Rs391, GIL is trading at 16x FY21E EPS of Rs24.4 and 11.8x FY22E EPS of 32.9 Key Risk1) Product concentration and 2)Any risk to the raw material prices and sourcing remain the key risk to the stock."
2. 10 PM: Market falls further
Market indices reversed trend and turned bearish by the afternoon session on Wednesday, amid weak oepning in European markets. Sensex fell by 340 points to trade at 40,205 and Nifty was trading 106 points lower at 11,790.
1. 50 PM: Rupee rises 13 paise to 73.36
Indian rupee, the currency benchmark, strengthened by 13 paise to 73.36 per dollar on Wednesday, supported by positive domestic equities and weak US currency.
1. 46 PM: Market turnes red
Market indices reversed trend and turned bearish by the afternoon session on Wednesday, amid weak oepning in European markets. Sensex fell by 100 points to trade at 40,436 and Nifty was trading 38 points lower at 11,858.
1. 40 PM: Top gainers and losers
IndusInd Bank, followed by HDFC, Tata Steel, ICICI Bank, Axis Bank, SBI, Titan, Kotak Bank and Reliance Industries werea among the top gainers today. On the other hand, Nestle India, HUL and TCS were among the laggards.
1. 32 PM: Infosys Q2FY21 Result update
Geojit in its Q2 report said," In the new-normal WFH scenario, Infosys is leading from the front in adopting technologies to ensure seamless connectivity to both its employees, and clients. We remain bullish on INFY's growth story and retain our BUY with a revised TP of Rs. 1,319 based on 26x FY22E EPS".
1. 26 PM: Hindustan Zinc share price gains over 4%
Shares of Hindustan Zinc gained over 4% on Wednesday's early session after the company declared interim dividend of Rs 21.30 amounting to Rs 9,000 crore, its highest in 12 years. This implies a dividend yield of 9.5% to its closing price as on Oct. 20, 2020, according to a company filing with the stock exchange.
Hindustan Zinc shares today opened with a gain of 3.72% at Rs 231.25 on BSE and climbed 4.17% to hit an intraday high of Rs 232.25, against the last close of Rs 222.95. Hindustan Zinc share price is trading higher than 5, 20, 50, 100 and 200 day moving averages. The stock has given 10.89% returns in the last 4 days of consecutive gains.
1. 13 PM: CLSA on Pharma sector
-Steady recovery in revenue & cost control to drive Q2 EBITDA
-Gradual recovery in the US and in India during the quarter
-Commentary on the recovery in sales trends keenly watched
-Steady quarter for UPL and some recovery for Apollo and Dr Lal
-Impact of the lockdown may be limited for UPL in Q2
1.03 PM: Mysore Projects update
Yash Gupta- Equity Research Associate, Angel Broking said," Mysore Projects Private Limited, a wholly Owned Subsidiary of Brigade Enterprises limited has entered into a Limited Liability Partnership agreement (LLP) with Prestige Estates Projects Limited in Prestige OMR Ventures LLP. Brigade Enterprises Limited and Prestige Estates Projects Limited are the partners in Prestige OMR Ventures LLP in the ratio of 30% and 70% respectively. Prestige Estates Projects Limited will contribute Rs 29.12 crores for their share of 70% and Brigade Enterprises limited will contribute Rs 12.48 crores for their share of 30%. This is positive development for Brigade Enterprises limited."
12. 45 PM: Dollar index
The dollar index fell to a one-month low against a basket of major currencies, amid news of renewed government spending to recover the US economy from the coronavirus pandemic-induced recession.
12. 27 PM: Bajaj Consumer Care Q2FY21 Result Update
Centrum Broking in its note said," Considering the revenue beat in Q2 and reduction in overheads we increase revenue and earnings estimates for FY21E/ FY22E by 7.3%/9.1% and 11.1%/12.8% respectively. We maintain ADD rating with revised DCF based target Price of Rs218 (implying PE 13x FY22E earnings). Risks to our call include over-dependence on ADHO, raw material price inflation and lag between price hikes."
12. 18 PM:L&T InfotechQ2FY21 Result Update
Jyoti Roy- DVP- Equity Strategist, Angel Broking said," L&T Infotech reported a 3.6% qoq growth in revenues to USD 404.5mn which was mostly in line with our expectations of USD 402.5mn. BFS, manufacturing and Others segments witnessed strong growth while Hi-Tech Media & entertainment, Insurance and CPG Retail & Pharma verticals witnessed sequential degrowth during the quarter. Overall the numbers were ahead of our expectations on the margins front though the company witnessed lower revenue growth rate as compared to Tire I IT companies like Infosys, HCT Tech and TCS. What was surprising was the weakness in verticals like Hi-Tech Media & entertainment, Insurance and CPG Retail & Pharma verticals which were areas of strong growth for the Tire I companies."
12. 05 PM: Mahindra CIE AutomotiveQ2FY21 Result Update
Jyoti Roy, DVP- Equity Strategist, Angel Broking said," Mahindra CIE Automotive reported a 9.3% YoY de-growth in consolidated revenues to Rs 1,694.3 crore for Q3CY20, as compared to revenues of Rs 1,868.5 crore for Q2FY20. EBIDTA for the quarter stood at Rs 150.8 crore down by 27.9% YoY while EBIDTA margins contracted by 230bps to 8.9%. Net profit for the quarter stood at Rs 60.7 crore as compared to profit of Rs 61.1 crore in the corresponding quarter previous year. Profits were largely at last years level due to increase in other income to Rs 42 crore as compared to Rs 4.2 crore. While revenues were down YoY they were up by 130.5% QoQ. Gradual opening up of the economy led to the strong sequential rebound in revenues though the drop in operating margins were a bit disappointing as most of the auto ancillary companies have reported the same or slight improvement in margins so far."
11. 52 AM:Dr. Reddys update
Yash Gupta- Equity Research Associate, Angel Broking said, "Dr. Reddy's Laboratories Ltd. along with its subsidiaries together referred to as Dr. Reddys today announced the relaunch of over-the-counter (OTC) Famotidine Tablets USP, 10 mg and 20 mg, the store-brand equivalents of Original Strength and Maximum Strength Pepcid AC in the U.S. market, as approved by the U.S. Food and Drug Administration (USFDA). Dr. Reddys OTC Famotidine Tablets are acid reducers that prevent and relieve heartburn associated with acid indigestion and sour stomach brought on by eating or drinking certain food and beverages. The Pepcid AC brand and generic had U.S. sales of approximately $211 million for the most recent twelve months ending in August 2020. This product will help the company to fill the gap created by Ranitidine due to withdrawal."
11. 39 AM: Equitas Small finance bank update
Jaikishan Parmar- Sr. Equity Research Analyst, Angel Broking said,"Equitas Small finance bank has launched its IPO today, the total size of the IPO is Rs.518cr. The offer included a fresh issue of shares worth Rs.280Cr and an offer for sale of 7,20,00,000 shares by the parent company (Equitas Holding). Equitas SFB raised approx Rs.140 cr through anchor investor on Monday. Today, on the first day of subscription IPO got a subdued response. IPO subscribe 0.39x and primarily supported by retail investors.
At the upper end of the price band, Equitas SFB demands Adj. PB of 1.26x post considering the fresh issue. Though the bank has a diversified loan book and the best CASA ratio among SFBs, the return ratios are subdued with GNPA above 2.5% for last 3 years. Our concern for Equitas SFB is the fresh formation of bad loans from moratorium book that would keep provisions high and return ratios compressed. We believe investors should wait for price discovery before making any investment decisions. Considering above factors, we recommend a NEUTRAL rating for the IPO. "
11. 22AM: Gold price gains after 1-day fall
Gold price in the Indian commodity market gained on Wednesday andt traded above the key psychological level of Rs 50K, tracking positive cues from overseas.
On MCX, Gold price traded Rs 60 higher at Rs 50,970 today over its previous close of Rs 50,910 per 10 gm. Silver September Futures traded Rs 320 higher at Rs 63,444 per kg today.
11. 11 AM: Coronavirus toll
Worldwide, there were 410 lakh confirmed cases and 11.29 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 76-lakh mark and the death toll from COVID-19 infections rose to 1.15 lakh, as of today.
11.02 AM: Indian Energy Exchange - Q2FY21 Result update
Amarjeet Maurya - AVP - Mid Caps, Angel Broking said,"For 2QFY21, Indian Energy Exchange Ltd (IEX)'s top-line grew by ~5% to Rs71cr due to decent trade volume on exchange. On the operating front, the company reported margin contraction (down by 75bp YoY to 78.2%), primarily on account of higher expenditure expenses. The reported net profit de-grew by 9% YoY to Rs44cr due to lower sales."
10. 56 AM: CLL stock update
Amarjeet Maurya- AVP - Mid Caps, Angel Broking said,"For 2QFY21,CCL Products India (CCL) top-line de-grew by 8% to Rs205cr due to covid-19. On the operating front, the company reported margin improvement (up by 396bp YoY to 21.1%), primarily on account of lower operating expenses. The reported net profit de-grew by 20% YoY to Rs20cr due to lower sales."
10. 40 AM: Stocks to watch today on October 21
Hindustan Zinc, RIL, L&T Infotech, SpiceJet, Bajaj Auto among others are the top stocks to watch out for in Wednesday's trading session
10. 31AM:Cipla share update
Yash Gupta-Equity Research Associate, Angel Broking said," Cipla Limited announced that it has launched generic Nintedanib for the treatment of Idiopathic Pulmonary Fibrosis (IPF). Available as 100 mg and 150 mg capsules, it will be marketed under the brand name Nintib. This launch marks yet another milestone in Ciplas decade-long commitment to treat IPF, a rare lung disease that impacts ten in one lakh people. Ciplas journey in IPF began in 2010 with the introduction of Pirfenex, the worlds first generic Pirfenidone and the first ever approved drug for IPF in India. Ciplas Nintib is priced at Rs. 69 (100 mg) and Rs. 85 (150 mg) per capsule. IPF is a chronic progressive form of lung disease with an average survival rate of three to five years if left untreated. It is characterized by scarring in the lungs, wherein the lung tissue becomes stiff and thick. This interferes with a person's ability to breathe and reduces oxygen supply to the blood, resulting in shortness of breath. This is positive development for the company."
10. 24 AM: Nifty technicals
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said,"The Nifty index opened on a flat note and moved higher till noon upto 11950. However, the index then gave up the intraday gains and consolidated within a range to end the day tad below 11900.It was a day of consolidation for the index as no major movement was seen on either side. The stock specific action continued within the range and on the short term charts, it is observed that the trading range for index has shrinked to 11800-12000. Markets seem to be waiting for some trigger to come of this range and a directional move is expected only post a breakout. A move beyond 12000 would bring back the optimism to lead the indices higher. Till then, traders are advised to continue to trade with a stock specific approach."
10. 19 AM: Gold outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said, "Yesterday Gold and Silver increased sharply on the back of expectation of covid -19 stimulus package before US election. Correction in Dollar index also supportive for Gold as a safe haven asset. Gold increased by 0.44% and closed at 50910 levels and silver increased at 1.66% and closed at 63,124 levels. In international market gold is trading at $1918 per ounces and Silver is trading at $25.00 per ounces. On domestic front the physical demand of gold and silver increasing on Festival demand. As for today traders can go for buy in gold at Rs 50,900 levels with the stop loss of Rs 50650 levels for the target of 51500 levels. They can also go for buy in Silver at Rs 63,200 levels, with the stop loss of 62,400 levels and for the target of 64,400 levels. We expect gold may test $1950 and Silver may test $26.50 levels soon."
10.07 AM:Dhanuka Agritech buyback update
Keshav Lahoti- Associate Equity Analyst, Angel Broking said," Dhanuka Agritech buyback offers begin on October 20, 2020 and will close on November 02, 2020. Offer is to buy back 10,00,000 (ten lakhs) fully paid-up equity shares of the face value of Rs 2 each at a price at Rs 1,000 per equity share for an aggregate amount of Rs 100 crore on a proportionate basis through the tender offer process. Record date for the eligible shareholders was September 28, 2020. We advise eligible shareholders to participate in buy back as buy back price is at 44% above the current market price. We are bullish on the Company as it has better return ratios, working capital cycle and cash flow compared to its peers. We are positive on the long term prospects of the Company owing management capability and a wide & diversified product portfolio as well as reach."
9. 55 AM: Market outlook
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments said," The Nifty is trading around the upper end of the range 12000-12050. We need to get past the 12050 levels in order to move to higher levels. We could target 12200-12300 once we have crossed 12050. The overall trend is positive with good support at 11650."
9. 40 AM: Global markets
Asian markets are trading mixed as investors remained focused on developments regarding US stimulus.
U.S. markets closed higher as investors watched progress in stimulus talks ahead of deadline and got further steam after comments from Pelosi.
European markets closed lower as concerns over rising corona virus cases in Europe and nearing deadline of US stimulus weighed on the markets.
9. 30 AM: Nifty technials
As per Geojit Financial Services, volatility dominated yesterday, despite surges in the second half. The close near 11922, the upper extremity of the volatile range suggested yesterday, is indicative of continuation of upsides aiming 11250 initially. Alternatively, pull back below 11840 would have to be taken as a weakening signal.
9. 24 AM: Opening session
Market indices traded majorly bullish on Wednesday, amid positive global equities. Sensex gained 400 points higher to trade at 40,945 and Nifty rose 109 points to 12,006. SGX Nifty on the Singapore Exchange was rising 50 points higher, indicating positive trend in domestic grounds today.
9. 10 AM: Global markets
Asian stocks were trading mostly higher on Wednesday, tracking po sitive cues from Wall Street that closed higher Tuesday on growing optimism that U.S. lawmakers are nearing a deal on a stimulus package
9. 00 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 1,585.07 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,633.23 crore in the Indian equity market on 20 October, provisional data showed.
8. 50 AM: Earnings today
Investors are also awaiting Sept quarter earnings reports will provide a clear picture of the disruption caused by the coronavirus pandemic-induced lockdown. Bajaj Finserv, Bajaj Finance, UltraTech Cement, Syngene, GMM Pfaudler, DB Corp and Colgate Palmolive are among the top companies that will be reporting their Q2 earnings.
8. 40 AM: Rupee closing
On the currency front, Indian rupee depreciated by 12 paise at the forex market and settled at 73.49 per US dollar on Tuesday, over its previous closing price of 73.37.
Expressing views on currency's technical outlook, Angel Broking in its note said," With voting likely to happen on the stimulus package, USDINR (CMP: 73.44) is likely to move in the range from 72.5 mark at the lower end of the spectrum and 74.5 mark at the higher end.
8. 30 AM: Closing on Tuesday
Domestic market indices Sensex and Nifty closed on bullish note on Tuesday, despite weak global cues, on the back of heavy buying across index heavyweights. Extending gains for the third straight session, Sensex ended 112 points higher at 40,544 and Nifty gained 23 points to settle at 11,896.