Sensex, Nifty Highlights on October 28: Market indices reversed trend and ended majorly in red territory on Wednesday, following weak cues from global equities. Sensex traded 599 points lower at 39,922 and Nifty fell by 159 points to 11,729. SGX Nifty on the Singapore Exchange was falling by 45 points, indicating negative trend in domestic grounds today. Meanwhile, September quarterly earnings announcements by Axis Bank, Larsen & Toubro, Titan Company, Dr Reddy's Labs, Hero MotoCorp, Marico, PI Industries, GSK Pharma and ICICI Securities will also set the tone for the stock market today. Yesterday, Sensex closed 376 points higher at 40,522 and Nifty gained 121 points to 11,889.
Here's a look at the updates of the market action on BSE and NSE today
3. 46PM: Closing
Market indices reversed trend and ended majorly in red territory on Wednesday, following weak cues from global equities. Sensex traded 599 points lower at 39,922 and Nifty fell by 159 points to 11,729.
3.39 PM: Hero MotoCorp shares rise over 4%
Hero MotoCorp shares were trading 4% higher on Wednesday, ahead of its Sept quarterly results, scheduled to be released later in the day. The share price of Hero MotoCorp opened with a gain of 2.55% at Rs 2,987 and later touched an intraday high of Rs 3,034.5, rising 4.18%, as compared to the earlier closing of Rs 2,912.70 on BSE. Hero MotoCorp share price is trading higher than 100 and 200-day moving averages but lower than 5, 20 and 50-day moving averages.
3.22 PM: M&M Financial Services
On M&M Financial Services - Q2FY21 result update - Centrum Broking said," For FY21/22 we have reduced our AuM growth and opex estimates. Due to postponement in stress recognition given restructuring we raise our FY22E provisions. These changes could impact FY21/22 PAT by 0.7%/-6.9%. Improving rural cash flows due healthy agricultural activity and the upcoming festive season might lead to better recoveries though CE remains a key. We maintain our multiple at 1.7x FY22 ABV and TP at Rs165. Risks: higher stress."
3. 13PM: SBI Cards & Payment Services update
Geojit Research said in its note," SBI Cards & Payment Services, Company added 688k new accounts during the quarter. Cards in force rose 3.8% QoQ to 11,009k, and spends per card increased to Rs. 110k from Rs. 72k in Q1FY21. Growth momentum should pick-up in retail credit activity and daily spends in upcoming quarters. Given current upside potential, we reiterate BUY on the stock with a TP of Rs. 913 based on 10.5x FY22E."
3. 02 PM: Bharti Airtel update
Keshav Lahoti Associate Equity Analyst, Angel Broking said,"On a consolidated basis, Bharti Airtel's India's subscriber base grew by 4.9% QoQ to ~32.1 crore. India business delivered good growth across revenue, margins and customers. We are bullish on the Bharti Airtel considering that industry dynamics are looking favorable, it is expected to gain revenue market share and stock has corrected ~30% from its high which provides valuation comfort.
2. 49PM:Radico Khaitan update
Amarjeet Maurya - AVP - Mid Caps, Angel Broking said," For 2QFY2021, Radico Khaitan (RKL)'s net sales grew by ~10.5% to Rs630cr (volume increased by ~4% yoy). During the quarters, RKL's results demonstrated a sharp recovery in Radico Khaitan's performance. However, the industry revival is dispersed with a few states still reeling under pressure due to a high tax regime, prolonged and local level lock downs. On the operating front, the company reported margin improvement (up by 180bp YoY to 16.9%), primarily on account of better price realization. The reported net profit de-grew by ~8% YoY to Rs72cr due to higher taxes.
2. 33PM: Sanofi India update
Centrum Broking said in its note," SIL continues to own a stronger chronic portfolio in domestic MNC pace. Revenue growth excluding export for the domestic business continues to be at mid-high single digits. In CY20. Post the export business adjustment which would be in the base for 1HCY21 we should look forward to the key execution of the domestic business. Total MRs on the field stood at 1860 by CY19 and DPCO coverage at 18% of sales. The margins could have some tilt due to higher exposure to export post the hive-off. New products launches from parents would be weaker given lower focus on Diabetic franchise. We have increased earnings owing t to better margins for CY20E/ CY21E by 7%/8% respectively. The stock at Rs 8,399 trades at 37x CY20E EPS of Rs228 and 32x CY21E EPS of Rs260."
2. 27PM: Market update
Market indices reversed trend and fell majorly on Wednesday, following weak cues from global equities. Sensex traded 538 points lower at 39,983 and Nifty fell by 153 points to 11,735.
2. 14PM: L&T shares trade flat
The share price of Larsen & Toubro (L&T) traded muted on Wednesday, as the company will announce its September quarter numbers later in the day. The company is also going to consider special dividend today.
The share price of L&T opened at day's high of Rs 994.85, although later the stock fell to an intraday low of Rs 974.15 on BSE, falling 0.8% against the last closing of Rs 982.45.
2.05PM: Rakesh Jhunjhunwala buys 4 crore shares of this auto firm
Ace investor Rakesh Jhunjhunwala has bought shares of Tata Motors during the quarter ended September. This is Jhunjhunwala's first direct investment into an auto firm after Autoline Industries where he and his wife Rekha held 6.20% or 17.51 lakh shares of the firm for the quarter ended September 2020.
Jhunjhunwala bought 1.29% or 4 crore shares in Tata Motors, shareholding data at the end of September quarter show. Tata Motors share has surged 36% in September quarter.
1. 56PM: Market falls further
Market indices reversed trend and fell majorly on Wednesday, following weak cues from global equities. Sensex traded 720 points lower at 39,801 and Nifty fell by 196 points to 11,692.
1. 43PM: L&T shares trade flat
The share price of Larsen & Toubro (L&T) traded muted on Wednesday, as the company will announce its September quarter numbers later in the day. The company is also going to consider a special dividend today.
"Given that at the meeting of the board of directors of the Company scheduled to be held on Wednesday, October 28, 2020, it is proposed to consider and approve special dividend on equity shares, for the Financial Year 2020-21," L&T said in an exchange filing.
1.32 PM: YES Bank shares drop over 2%
Shares of private sector lender YES Bank fell over 2% on Wednesday, following reports that the lender has started the process for obtaining physical possession of Reliance Center, the Mumbai headquarter of Anil Ambani's Reliance Group
YES Bank had taken 'symbolic possession' of Reliance Center after company failed to repay dues worth Rs 2,892 crore in July
1. 28 PM: Real Estate Sector update
Ankush Jain, MD, Bullmen Realty says, "The year ahead is going to be the year when people will show faith in developers whose intentions of delivery are clear. Various reports are suggesting that buyers are inclined towards ready-to-move-in homes or projects that are clear about the delivery deadlines. In fact, we came up with 'Bullmen Guarantee Offer where we provided safe real estate options to property seekers by ensuring that people wouldn't get stuck in projects that got mired in problems. Many developers have associated with us as they respect people's need to get the property with a guarantee. People were waiting for such an initiative, and the success of the initiative indicates the route real estate is going to take in the coming years."
1.11PM:CSB Bank update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," CSB Bank and IIFL have joined hands to offer gold loans in tier 3 / 4 cities. Under this partnership, IIFL will act as a business correspondent of CSB bank. For Q2FY21 CSB bank reported a decent set of numbers. NII up (56% YoY/24% QoQ) on healthy NIM of 4.5% (44 bps QoQ) in turn led by robust gold loan growth (47% YoY/29% QoQ). The direct gold loans constitute 35% of the book and bank is targeting to hike the same to the cap of 40% set by the board, by Q4FY21. We believe this step is in the right direction, this will help CSB bank to improve NIM and profitability."
12. 54PM: Market falls further
Market indices reversed trend within the first hour of session and turned red on Wednesday, amid weak cues from global equities. Sensex traded 550 points lower at 39,979 and Nifty fell by 145 points to 11,743.
12. 43PM: Harley-Davidson-Hero MotoCorp deal
Amarjeet Maurya-AVP-Mid Caps, Angel Broking said: "Harley-Davidson, Inc. motorcycle manufacturer and Hero MotoCorp has announced agreement. As per agreement Hero MotoCorp will develop and sell Harley-Davidson motorcycles, and sell Parts & Accessories and General Merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero's existing dealership network in India.
In our view, Hero MotoCorp will benefit from this joint agreement. The company would be able to generate more revenue on the back of selling Harley-Davidson motorcycles. Further, the company has a strong distribution network in India, which would help the company to grow fast in this premium bike segment. So overall this development is positive for Hero Motocorp."
12. 33PM: Rupee rises by 6 paise to 73.65
The rupee was trading in a narrow range at the interbank forex market. The local unit opened at 73.70 per US currency, and later gained by 6 paise to 73.65, from its previous close.
On Tuesday, rupee settled 13 paise higher at 73.71 per US dollar, tracking positive domestic equities.
12. 27PM: Why Tata Motors share price rose 5% post Q2 loss
Tata Motors share rose over 5% in trade today even as the auto giant reported a consolidated loss of Rs 314.5 crore in Q2. Share of Tata Motors gained 5.49% to Rs 143.15 against previous close of Rs 135.70 on BSE. Tata Motors share has gained 4.79% in last 2 days. Tata Motors share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has lost 5.41% during one year and fallen 24.39% since the beginning of this year.
12.04 PM: Bharti Airtel share rises 10%
Bharti Airtel share rose 10% in early trade today after the telco narrowed its Q2 loss backed by strong revenue growth. Share of Bharti Airtel hit upper circuit of 10% at Rs 476.30 against previous close of Rs 433 on BSE. Bharti Airtel stock has gained after 2 days of consecutive fall. The stock opened with a gain of 3.09% at Rs 446.40.
11.57AM: M&M Financial Services update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said in its note," M&M Financial Services reported a subdued set of numbers for Q2FY21. AUM remain flat YoY/ QoQ. NII grew by 8.3% YoY which led to an improvement in NIM. NIM expansion is largely driven by the lower cost of funds. Pre provision profit jumped 25% YoY owing to controlled opex. Other expenses declined 46% YoY. Provisions increased 72% YoY due to high provisions for Covid-19 (Rs430cr) and elevated write-offs. The company holds Rs1480cr of Covid-19 provisions which is approx 2.3% of AUM. M&M Fin has reported improvement in a collection sequentially, however, potential stress books remained elevated. Around 17% of its borrowers under moratorium have not paid a single installment in the past six months. As per management there is would be a requirement of restructuring around 9% of the book. We have a neutral view considering the likely higher stressed book."
11. 38 AM: Gold outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," Alarming increase in the coronavirus cases around the globe clouded the global economic outlook. Many nations reinforced fresh lockdown which dented markets risk appetite and shifted the investors towards the safe haven asset for gold. While no major signs of any additional relief fund by U.S. limited the gains for Gold, House Speaker Nancy Pelosi continued to hope for a possible deal with President Donald Trump's administration before the upcoming November'20 Presidential elections. Weaker US dollar amid worries over the implacable virus might drive the investors under the safe haven for gold. As for today traders can go for buy in gold at Rs 50,700 levels with the stop loss of Rs 50500 levels for the target of 51300 levels. They can also go for buy in Silver at Rs 61,700 levels, with the stop loss of 61,200 levels and for the target of 62,700 levels."
11. 22AM: ICICI Pru Life update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," ICICI pru Life reported a mixed set of numbers as growth moderates however, positives are margin improves, mix improved towards non-linked business. Annual premium equivalent (APE) declined by 23% primarily led by a decline in ULIP (down 45%) but non-participating business reported growth. ICICI Pru Life's non-linked savings business increased 50% YoY to 30% of overall APE in 2QFY21 from 15% in 2QFY20 and 24% in 1QFY21. VNB margin improved by 636bps YoY /300 bps QoQ led by higher protection tariffs, increased non-par business, and controlled opex. We have a positive view on ICICI pru Life considering the gradual improvement in VNB margin and structural tailwind for insurance product demand."
11. 10 AM: Market udpate
Market indices reversed trend within the first hour of session and turned red on Wednesday, amid weak cues from global equities. Sensex traded 238 points lower at 40,273 and Nifty fell by 53 points to 11,835.
11.04 AM: Coronavirus toll
Worldwide, there were 442 lakh confirmed cases and 11.71 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 79-lakh mark and the death toll from COVID-19 infections rose to 1.20 lakh.
10. 54 AM: Gold prices today
Gold price steadied from fall in the previous session and traded flat with negative bias on Wednesday, near the key psychological level of Rs 50K. Overseas, weak dollar and concerns over a second wave of corona virus in many countries forced investors to shift to safe haven asset.
On MCX, Gold prices traded flat at Rs 50,922 today, over its previous close of Rs 50,960 per 10 gm. Silver September Futures traded Rs 281 lower at Rs 62,000 per kg today.
10. 47 AM: Nifty Outlook
The upswing as well as the tussle inside the 11845-11868 yesterday, evolved on anticipated lines. Also, the push above the this region in the closing hour was not surprising, as we had chosen to play down the threats of a directional downside. However, we remain equally non committal on directional upside as well, and the gains of yesterday are sure to see some profit booking. We are likely to begin the day answering the questions posed by 11840-11800 region before making a move. A collapse is still not a favoured move, but while the prospects of a directional upside look limited, 12000 is indeed an achievable target for the day. However inability to float above 11800 will give upper hand to volatility.
10. 31 AM: Gold outlook
As per Geojit Financial Services, gold prices are likely to be congested inside $1912-1890 levels initially and breaking any of the sides would suggest fresh direction to the commodity for the day. For MCX Gold August, resistance is placed at 51240 and support is at 50110.
Commenting on Silver's near-term technical indicators, the brokerage said," If the support of $24 remain undisturbed, ex-pect recovery upticks for the day. However, an unexpected drop below the same may turn prices lower but unlikely to trigger major sell-ing pressure." For MCX Silver August futures, the resistance is at 64,080 and the support is placed at 59,300.
10. 21AM: Global markets
Global equities were negative today as worries about a surge in coronavirus cases and dwindling hopes for a U.S. stimulus package kept investors gloomy. Senate Majority Leader Mitch McConnell adjourned the Senate until November 9, further diminishing the prospects of a deal being reached before the election.
10.09 AM: Top gainers and losers
Bharti Airtel, M&M, Maruti, Bajaj Finance, Bajaj Finserv, NTPC, Axis Bank and Infosys were also among the gainers. Kotak Bank, followed by HDFC, HUL, ICICI Bank and Titan were among the top losers.
9. 50 AM: Global markets: Geojit Fianancial
Asian markets are trading lower taking cues from US markets as corona virus cases continues to rise. Australia's CPI rose 1.6% (Sep qtr) against previous qtr.
U.S. markets continued move lower as concerns related to rising cases of corona virus and fading hopes over the stimulus package.
European markets closed lower as investors continued to watch intensity of second wave of corona virus in Europe and also the corporate earnings.
9. 45 AM: Market outlook
On markets today --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," The Index is still stuck in a range between 11650 and 12050. While choppy markets can test a trader's patience, one must exercise caution and avoid trading in rangebound markets. If we can get past 12050, the Nifty can achieve 12200-12300. If it breaks 11650, we could drop to 11400-11450."
9. 34 AM: Stocks to watch today on October 28
Hero MotoCorp, Bharti Airtel, Wipro, ICICI Prudential, Tata Motors among others are the top stocks to watch out for in Wednesday's trading session
9. 11 AM: Opening session
Market indices opened on a bullish note on Wednesday, despite positive global equities. SGX Nifty on the Singapore Exchange was falling by 45 points, indicating negative trend in domestic grounds today. This was following reports that PM Narendra Modi would meet FM Nirmala Sitharaman at 6:30 pm to discuss stimulus package. The positive sentiment in market was also fuelled by hopes of higher foreign inflows into local markets after MSCI said it would revise its global indexes to reflect changes in the country's foreign ownership limits. Sensex traded 22 points higher at 40.533 and Nifty gained 21 points to 11,911.
9.07 AM: Market outlook
Reliance Smartmoney Reserch said in its note: NSE-NIFTY reversed after testing its short-term moving average 20-day EMA and erased partial loss of previous trading session. 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 11,775 and then at 11,661 levels, while resistance is observed at 11,951 and then at 12,013 levels.
8. 50 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 3,514.89 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,570.80 crore in the Indian equity market on 27 October, provisional data showed.
8. 40 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. Earnings today: L&T, Axis Bank, Hero MotoCorp, Dr Reddy's Laboratories, Titan, APL Apollo Tubes, AU Small Finance Bank, Blue Star, Can Fin Homes, CG Power and Industrial Solutions, Cummins India, Heritage Foods, IIFL Wealth Management, ICICI Securities, Marico, Max India, MCX, MOIL, Navin Fluorine International, Piramal Enterprises, PI Industries, PNB Housing Finance, Radico Khaitan, RBL Bank, Route Mobile, Tata Coffee, Texmo Pipes & Products, UTI Asset Management Company and V-Guard Industries among others will report earnings today.
8. 30 AM: Closing
Benchmark indices ended on a bullish note on Tuesday despite muted global equities following reports that PM Narendra Modi would meet FM Nirmala Sitharaman at 6:30 pm to discuss stimulus package. The positive sentiment in market was also fuelled by hopes of higher foreign inflows into local markets after MSCI said it would revise its global indexes to reflect changes in the country's foreign ownership limits.
Yesterday, Sensex closed 376 points higher at 40,522 and Nifty gained 121 points to 11,889.