Sensex, Nifty Highlights on October 29: Market indices ended on a bearish note for the second consecutive session on Thursday, the October expiry day, amid weak global equities. Sensex ended 172 points lower at 39,749 and Nifty fell 58 points to 11,670. Meanwhile, September quarterly earnings announcements by Maruti Suzuki, BPCL, InterGlobe Aviation, Havells India, IDBI Bank, Vodafone Idea, TVS Motor and Bank of Baroda will also set the tone for the stock market today. Yesterday, Sensex ended 599 points lower at 39,922 and Nifty fell 159 points to 11,729.
Here's a look at the updates of the market action on BSE and NSE today
3. 52 PM: Closing
Market indices ended on a bearish note for the second consecutive session on Thursday, the October expiry day, amid weak global equities. Sensex ended 172 points lower at 39,749 and Nifty fell 58 points to 11,670.
3. 39 PM: Market outlook
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The markets have kept above the 11650 level upon closing. We need to see if we break that tomorrow. Should that happen, we would be commencing the November series on a negative note as the Nifty can then go down to 11400-11450 levels. On the upside, we have a stiff resistance at 11900-11950."
3. 27 PM: Maruti Suzuki share trades flat
Maruti Suzuki share was trading flat ahead the firm's Q2 earnings today. The share fell 1.74% to Rs 7057 against previous close of Rs 7182 on BSE. Later, it was trading 0.88% lower at Rs 7114 on BSE. Maruti Suzuki stock was trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages The large cap stock has lost 7.88% in one year and fallen 3.48% since the beginning of this year. Total 0.15 lakh shares of the firm changed hands amounting to turnover of Rs 10.55 crore. Market cap of the firm fell to Rs 2.15 lakh crore.
3. 14 PM: Titan update
Amarjeet Maurya - AVP - Mid Caps, Angel Broking said," For 2QFY2021, Titan Company Ltd (TCL)'s net sales de-grew by ~11% to Rs3,892cr. Segment-wise jewelry segments reported ~2% de-growth and other segments (like watches and eyewear) also reported lower sales numbers. On the EBITDA front, the company reported margin contraction (down by 307bp YoY to 9.4%), primarily on account of lower operating leverage. The reported net profit de-grew by ~38% YoY to Rs199cr due to lower sales and poor operating performance."
3.04PM: Rupee outlook
Nish Bhatt, Founder & CEO, Millwood Kane International -said:"The slide for the Indian rupee continues, as it slips below the 74/$ level, INR is now trading at a 2-month low. The US dollar has strengthened as investors flock to a safe haven in times of uncertainty. The rising number of COVID cases has forced governments in a few EU countries to enforce lockdown.
We are just a week away from the US Presidential election and the lack of clarity on the new stimulus package has created market uncertainty. Reports emerging that the Indian government is finalizing the next stimulus package to boost sentiment and bring growth back on track. Going forward a clear outcome from the US election, clarity on stimulus package from the US, and the Indian government will guide the INR."
2. 43 PM: Axis Bank update
Axis Bank - Q2FY21 result update -Centrum Broking said i nits not,"We have lowered loan growth for FY21/22E though FY21 NII would be protected by better NIM. See a shift in provisions from FY21 to FY22 due to restructuring. Hence FY21/22E PAT is revised by 2.2%/-9.2%. Axis being a strong franchise could gain market share in FY21E and strong capital and adequate provisions pose an advantage. We maintain BUY but raise our multiple/TP to 2.0x FY22E ABV (vs 1.8x earlier) and TP to Rs633 (vs Rs560 earlier). Risks: slower recoveries and higher slippages."
2. 31PM: VST Industries update
On VST Industries - Centrum Broking said in its note,"We believe strong tailwinds for DSFT segment will help VST gain market share. Moreover, 3% dividend yield to provides support to stock. We maintain our revenue estimates, however, given the strong focus towards Total and tight cost control, we increase our PAT est. for FY21/FY22 by 6.8%/3.4% and maintain a Buy rating with DCF-based revised Target Price of Rs3,985, implying 18.5x FY22E EPS. Risks to our call include sharp increase in any form of taxation and disruption in supply chain due to lockdowns."
2. 25PM:ICICI Prudential update
JM Financial Institutional Securities said in its note," For the period ended Sep'20, ICICI Prudential (IPRU) generated an NBV of INR6.0bn, down15% YoY due to negative growth. Margins improved 530bps YoY to 26.3% despite sharps lowdown as low margin ULIPs got replaced by traditional savings and better-priced protection products. On a cumulative retail premium basis, persistency in late bucket has seen an improvement with 49th mth by 150bps YoY, 61st mth up 20bpsYoY owing to better outreach and higher awareness in light of COVID19.Mgmt. expects the worst w.r.t. APE growth to be over for IPRU with a return to growth foreseen Jan'21 onwards. We forecast an NBV CAGR of 4% over FY20-22E as APE readjustment continues into FY22 (CAGR of -6%)and aided by higher share of traditional products, deep distribution and higher productivity.Going ahead, revival in APE growth will be a key factor which will rerate the stock. Maintain BUY with TP of INR 500 valuing the company at 2.3x FY22E EV.
2. 13PM: Tata Motors update
JM Financial Institutional Securities said in its note,"In 2QFY21, Tata Motors reported a consol. Retail sales of JLR improved across geographies and response of new Defender continued to remain strong. Driven by gradual recovery across major markets and lower dealer inventory, management anticipates strong sequential growth during 2HFY21. JJLR intends to increase share of BEV/PHEV going ahead to meet emission compliance. Improvement in sales, favourable mix and Charge+ savings (target of GBP 0.7bn in 2HFY21) should support margins going ahead. In the domestic market, PV sales outperformed the industry and achieved EBITDA break-even. While CV sales continue to improve gradually, 2HFY21 CV volumes are likely to be c.2x that of 1H. We estimate revenue CAGR / EBITDA of 12%/23% over FY20-23. Maintain BUY with revised Sep'21 TP of INR170 (standalone/JLR business valued at 8x / 2x EV/EBIDTA).
2.02 PM:Axis Bank update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," Axis Bank reported above estimate numbers for Q2FY21, CASA, NII & NIM improved however, weak Loan growth and increase in watch list are a concern. Loan Book grew 10.5% YoY and NII grew at 20% YoY. On the liability front, SA deposits grew 12% YoY and helped by strong CA growth of 27% YoY, CASA ratio improved 320bps to 44.2% sequentially.
NNPL% remained low at 1%, 30+ overdue loan was contained at 2.3% and collection efficiency improved to 94/95% in Sep-Oct-20. Management expects Rs.2500cr worth of loan book gets restructured from a retail book. Bank carries contingent provision of Rs.10,800cr."
1.44 PM: RBL Bank update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," RBL Bank reported a moderate set of numbers. Positive is CASA improved, BBB & Below book declined, and NII and Advance growth weak. Advance declined 4% YoY, The corporate loans declined by 26% YoY ( 43% of overall loans) but retail loans improved by 23% YoY. NII grew at 7%, which is a very weak growth considering the history of NII growth. NIMs declined ~50bps to 4.34% due to accelerated de-recognition of interest on expected slippages in 3QFY21. Pre provision increased 13% led by controlled opex (declined 1% YoY). Deposits momentum carried over from 1QFY21 and grew 5% QoQ and CASA ratio improved to 31%. Bank expects credit cost similar to FY20 and it has a contingent provision of 1.2% of the loan book. We have a positive view on RBL bank considering inexpensive valuation.
1. 30 PM:AU Small finance update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," AU Small finance overall reported a good set of numbers for Q2FY21. Based on activity levels of complete Moratorium cases and collection feedback, AU SFB has not made any further COVID-19 related provisions. On the asset quality front, Gross and net NPAs improved to 1.54% and 0.45%, respectively. Strong Provision coverage of 71%. Moratorium book closed 5.5% in Aug from 11%in Q1FY21. Management has indicated a similar level in Q1FY21.
On the liability front, deposit momentum continues, CASA improved 500bps YoY to 21%. Disbursement momentum is back to the pre-covid-19 level. AU SFB is trading at a higher valuation compared to listed peers however, asset quality stability and quality growth are the key positive for a higher valuation."
1. 23PM: Real Estate sector update
Amit Jain, MD, Mahagun Group says, "The Indian real estate is showing signs of returning back to its pre-COVID levels, with support from low home loan interest rates and festive offers. Buyers are entering the market with a changed mindset towards claiming property ownership. This makes future for residential real estate stable. The popular WFH culture and close to null price correction are some of the other significant driving factors. Noida and Greater Noida have emerged as the only areas in NCR region to report a positive trend in property sales during and after lockdown. This can be attributed to a variety of projects available, a higher percentage of RTMI homes, established developers, announcement of new infrastructure developments such as Jewar airport and Film City.
1. 10 PM: YES Bank share falls over 2%
Shares of private sector lender YES Bank fell over 3% on Thursday after the bank on Wednesday said that Swaminathan Janakiraman, the nominee director appointed by State Bank of India, has resigned with effect from October 28, 2020.
The private sector lender in an exchange filing said,"Pursuant to Regulation 30 of the SEBI(Listing Obligation & Disclosure Requirements) Regulations, 2015, this is to inform that Mr. Swaminathan Janakiraman has submitted his resignation as Nominee Director appointed by State Bank of India on the Board of Yes Bank Limited."
1.00 PM: Piramal Enterprises update
Yash Gupta Equity Research Associate, Angel Broking said," Piramal Enterprises Limited announced that the subsidiary piramal pharma agrees to Acquire Navin Fluorine's Stake in Convergence Chemicals at INR 65.10 Crores, Piramal Pharma and Navin Fluorine Mutually Agree on Piramal Increasing its Stake to 100% in Convergence Chemicals by buying out Navin Fluorine's 49% stake in CCPL at INR 65.10 crores. Recently, PEL transferred its entire stake in CCPL to PPL. Convergence Chemicals develops and manufactures specialty fluorochemicals, primarily starting material required for PPL's anesthetics production. As PPL continues to grow its anesthetics business, its resultant requirement for the starting material is expected to increase in the coming years. This is positive development for Piramal Enterprises.
12. 54 PM: Top gainers and losers
Titan, followed by L&T, ONGC, Tech Mahindra, Bajaj Auto, HUL and Nestle India were among the top laggards in the Sensex pack. On the other hand, Axis Bank, Asian Paints, UltraTech Cement and HCL Tech were among the gainers.
12. 39 PM: Market outlook
Yash Gupta Equity Research Associate, Angel Broking said,"Indian Indices Nifty and Sensex down by 18 points (0.16%) and 26 points (0.07%) respectively. Indian Indices opens negative on back of negative global market clues due to fear of lockdown due to increase in covid cases. Today S&P BSE Energy (up 0.45%), S&P BSE BANKEX (up 0.28%) while S&P BSE CAPITAL GOODS (down 1.59%), S&P BSE CONSUMER DURABLES (down 1.39%). We expect the market to trade in range bound. Global Market update - DOW Jones down by 943 points (down 3.43%) and NASDAQ down by 426 points (down 3.73%)."
12. 20 PM: Market turns flat with positive bias
After opening on a negative note, domestic market indices traded marginally higher on Thursday, the October expiry day, amid weak global equities. Sensex was trading 30 points higher at 39,952 and Nifty gained 13 points to 11,742.
12. 12PM: Coronavirus toll
In India, coronavirus cases neared 80-lakh mark with total deaths standing at 1.20 lakh. Worldwide, there were 447 lakh confirmed cases and 11.79 lakh deaths from COVID-19 outbreak.
12.08 PM: Rupee below 74 per dollar
Indian rupee, the currency benchmark fell for the second straight session on Thursday to 74.05 per dollar, down another 18 paise. This was on back of weak opening in domestic equities amid global risk aversion.The domestic unit opened weak at 74.02 at the interbank forex market and later fell by 18 paise to 74.05 per US currency, over its previous close.
11. 56 AM: L&T shares fall today
Share price of Larsen & Toubro (L&T) fell nearly 5% today after the engineering and construction giant posted a 45 per cent decline in consolidated net profit for Q2. L&T stock opened with a loss of 3.12% at Rs 953 against previous close of Rs 983.65 on BSE. The stock has fallen after 9 days of consecutive gain.
11. 44 AM: Nippon Life India Asset Management update
Centrum Broking said in its note," We lower AUM growth for FY21/FY22 by 1.2%/2.2% respectively while accounting for lower opex and higher other income in FY21. This might result in higher PAT by 4.0%/2.1% for FY21/FY22E. Maintain our P/E multiple at 30.6x to arrive at a TP of Rs288 (vs Rs284 earlier) and retain ADD. Risks: lower AUM growth, regulatory challenges."
11. 37 AM: Market update
Market indices traded on a bearish note on Thursday, the October expiry day, amid weak global equities. Sensex dropped 278 points to 39,643 and Nifty fell 111 points to 11,617.
11. 29 AM: Larsen & Toubro update
As per Reliance Research, the stock of Larsen & Toubro rose to fresh one and half month high of 994.65 level post trend line breakout. The key technical indicators on the near-term timeframe chart has tested overbought zone and may reverse down. Hence, its advised to book profit and close the long trade at Rs 978.25.
11. 14AM: Gold price trades flat
Gold price in India steadied for the second session on Thursday and traded above the 50K mark today, inline with global commodity markets amid rising coronavirus cases and uncertainity ahead of US presidential elections.
On MCX, Gold price traded flat at Rs 50,455 today, over its previous close of Rs 50,495 per 10 gm. Silver September Futures traded higher by Rs 87 at Rs 60,149 per kg today.
Spot gold rose 0.2% to $1,881.16 per ounce, after falling as much as 2% on Wednesday, while Comex Gold was flat at $1,879.80 per ounce. US gold futures were up 0.2% at $1,882. Silver was flat at $23.41 per ounce.
11.03 AM: Global markets
Asian markets are trading lower taking cues from overnight plunge in US markets due to surge in corona virus cases. Japan's retail sales fell 8.7% in Sep.
U.S. markets closed lower on concerns over rising corona virus cases and its impact on the economy. The CBOE volatility index jumped above 40.
European markets closed sharply lower amid reports that Germany and France are preparing for fresh restriction are corona cases have jumped sharply across Europe.
10. 51AM :Bharti Airtel update
Keshav Lahoti-Associate Equity Analyst, Angel Broking said," Bharti Airtel was quite volatile for the day by touching intraday high of up by 12.6% but closing up by only 4.3%. Airtel rallied strongly due to strong quarterly result yesterday announced by the Company post market hrs and news around National Securities Depository (NSDL) increasing the company's foreign ownership limits to 100% from 49%. But later, NSDL clarified that Bharti's foreign investment limit for the time being will be monitored at 49% which led to correction in the stock from day's high. We are bullish on the Company considering that industry dynamics are looking favorable, it is expected to gain revenue market share and stock has corrected ~25% from its high which provides valuation comfort. "
10. 42 AM: RBL Bank update
LKP Securities said in its note," RBL Bank holds a healthy positioning in fight against COVID demonstrated by 1) adequate COVID provisioning, 2) improved PCR, and 3) healthy liquidity position with LCR of 171%. Furthermore, a healthy capital position (CET 1: 17.4%) post fund raise would provide cushion. Thus, we recommend a BUY rating on the bank with target price of ?198 (based on 0.85xFY22 Price to Adjusted Book Value)."
10. 35 AM: Hero MotoCorp share falls 2%
Hero MotoCorp share fell nearly 2% in early trade today despite the world's largest two-wheeler manufacturer reporting a 8.99 per cent increase in standalone profit during the September quarter. Share of Hero MotoCorp slipped 1.93% to Rs 2,888 against previous close of Rs 2,945 on BSE.
10.23 AM: Axis Bank update
On business front, credit growth (10.5% YoY & 2.7% QoQ) and deposit growth (8.8% YoY & 1.2% QoQ) was better than previous quarter. The future outlook on asset quality is vague as the asset classification remains standstill. The bank has made strong COVID provision buffer and it stands 2.18% of the loan book. In view of adequate buffer and strong capital position (CET 1 of 16.06%) post dilution, we have a positive outlook with BUY rating. We value the standalone bank with PBV of 1.7xFY21E Adj. BVPS of Rs 322 and value of subsidiaries per share of Rs 40 to reach a price target of Rs 587. We recommend a BUY with potential upside of 16%
10. 12 AM: Stocks to watch today on October 29
Wipro, Hero MotoCorp, GSK Pharma, SBI, L&T among others are the top stocks to watch out for in Thursday's trading session
10.05 AM: Market outlook
On markets today --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We broke the support of 11650 upon opening itself. Since we opened with a gap down, I would study the markets for the next couple of hours to see if the Nifty sustains these levels or goes back above 11650.Traders can then look at initiating shorts below 11650 for a target of 11450. The upside is capped at the resistance level of 11900."
9. 49 AM: Reddy's Labs update
Yash Gupta Equity Research Associate, Angel Broking said," Dr.Reddy's Laboratories ltd revenue from operations for Q2FY21 stood at Rs 4,896 crores up by 2% YoY from Rs 4,800 crores in Q2FY20. Pharmaceutical Services and Active Ingredients business has done well for the company which is up by 20.6% stood at Rs 1026 crores in Q2FY21 from Rs 850 crores in Q2FY20 while Proprietary Products down by 98.7% due to one off item in Q2FY20. Gross margins have come down from 57.5% in Q2FY20 to 53.9% in Q2FY21. Profit before tax for the quarter up by 12.5% at Rs 862 crores in Q2FY21 as compared to Rs 766 crores in Q2FY20. Profit after tax for the quarter down by 30.2% at Rs 762 crores in Q2FY21 as compared to Rs 1092 crores in Q2FY20 due to tax benefit of Rs 326.1 crores in Q2FY20. Company has reported results inline with expectation.
9. 36AM: Global markets
Asian stocks were trading mostly lower on Thursday following an overnight plunge in the US.
Key indices on Wall Street closed 3% lower, falling to its lowest closing level in nearly three months as coronavirus cases continue to surge in the West.
With a presidential election less than a week away, dwindling hopes for any US economic relief package also kept sentiments negative.
European markets also ended 3% lower amid growing concern over the latest increase in coronavirus infections and its potential impact on the global economy. French and German leaders announced new lockdown measures to combat rising infections.
9. 22 AM: Opening session
Market indices opened on a bearish note on Thursday, the October expiry day, amid weak global equities. Sensex dropped 278 points to 39,643 and Nifty fell 111 points to 11,617.
9. 13 AM: Nifty outlook
As per Reliance Securities, NSE-NIFTY resumed its southward journey post a rebound and closed below its short-term moving average 20-day EMA for the first time in this month. Weakness across the board dragged the index down. Even overall market breadth remained negative. As mentioned earlier, our near-term bearish stance will remain intact as its key technical indicators are negatively poised. A sustainable move below 11,661 mark will confirm short-term bearish reversal. That could drag the index towards 11,400 and 11,200 levels subsequently. On the higher side, its psychological hurdle point-12,000 level will cap the up-move.
As for the day, support is placed at around 11,633 and then at 11,537 levels, while resistance is observed at 11,878 and then at 12,026 levels.
9. 08 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.
Maruti Suzuki, BPCL, InterGlobe Aviation, Havells India, IDBI Bank, Vodafone Idea, TVS Motor and Bank of Baroda are among the top companies that will publish their September quarter results today.
8. 50 AM: Rupee closing
On the currency front, Indian rupee ended lower by 16 paise at 73.87, amid selling seen in the domestic equity market, against Tuesday's close of 73.71.
8. 40 AM: FII action
Foreign portfolio investors (FPIs) sold shares worth Rs 1,130.98 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1.48 crore in the Indian equity market on 28 October, provisional data showed.
8. 30 AM: Closing
Benchmark indices ended sharply lower on Wednesday led by high selling pressure in banks and financials, following weak global cues. Erasing gains of last 2 days, Sensex ended 599 points lower at 39,922 and Nifty fell 159 points to 11,729. Yesterday, Sensex closed 376 points higher at 40,522 and Nifty gained 121 points to 11,889.