Sensex, Nifty Highlights on November 2: After opening negative, market indices reversed trend and closed on a positive note on Monday, amid positive global equities. Sensex ended 143 points higher at 39,757 and Nifty gained 26 points to 11,669. Meanwhile, September quarterly earnings announcements by HDFC, Cadila Healthcare, Punjab National Bank, NTPC, Cadila Healthcare, Oracle Financial, Whirlpool of India, will also set the tone for the stock market today. On Friday, Sensex ended 135 points lower at 39,614 and Nifty fell 28 points to 11,642.
Here's a look at the updates of the market action on BSE and NSE today
3. 53 PM: Closing
After opening negative, market indices reversed trend and closed on a positive note on Monday, amid positive global equities. Sensex ended 143 points higher at 39,757 and Nifty gained 26 points to 11,669.
3. 44PM: Market outlook
S Ranganathan, Head of Research at LKP Securities said,"Ahead of the US elections, we witnessed a highly volatile trading session today with Reliance giving way. However indices managed to end in the green led by Financials which was indeed a treat to watch. Few high profile Realty names were the stars in the broader market today".
3. 23PM: Dhanuka Agritech update
On Dhanuka Agritech - Q2FY21 result update - Centrum Broking said," DAGRI currently trades at just 15.6x FY22E EPS, 11.7x EV/EBITDA and 3.5x P/BV. The stock has reflected the improved performance over the last 2 quarters, with 2x increase seen over May-Sep. Given the recent underperformance however (stock is down 6% over last month), we believe that there is a good opportunity to enter the stock, given peer leading growth of 27%/26% CAGR in EBITDA/PAT over FY20-22e. The stock has traded at an average PEG multiple of 2x (last 6-year average excluding FY19 which was negative) and our target price of Rs1,050/sh is based off a 22x FY22E EPS (revised up 4% post this result) of Rs47/sh, implying a PEG of only 0.9x this is 36% upside from CMP. BUY
3. 13 PM: Orient Cement update
Centrum Broking said," ORCMNT currently trades at a EV/EBITDA of 5.4x FY22e earnings. We assign EV/EBITDA of 6.0x March 2022E earnings estimates to arrive at a fair value of Rs84/sh (unchanged). At our target price the stocks trade at a replacement cost of Rs3.4bn/mt March 2022E capacity. The discount is higher due to risk of regional concentration and presence in over supply market. New capacity addition is on hold helping ORCMNT to shape its balance sheet better. We have maintained our BUY rating."
3.08 PM: Just Dial share price falls 8%
Just Dial share price rose over 8% after the company posted its quarterly results.
The company's consolidated Q2 net profit fell 38.5% YoY at Rs 47.34 crore for the September quarter as against Rs 76.94 crore in the same quarter a year ago period. Company's revenue was down 30.9% at Rs 167.53 crore as compared to Rs 242.57 crore.
Following the update, Just Dial share price opened with a loss of 6.35% today at Rs 611 and touched an intraday low of Rs 599.5, down 8.12% on BSE against the last closing price of Rs 652.45 on BSE. The stock also hit an intraday high of Rs 646.80.
2. 56PM: Global markets
European stocks reversed trend and were trading higher today. This was after the British government announced a national lockdown for England, making it the latest country to return to a nationwide shutdown, which begins on Thursday, to try to stem the rapid rise in cases and hospitalizations due to the virus.
Amid hopes of better than expected economic activity and fast recovery in China, Asian stock turned positive today.
2. 44PM: Just Dail update
UBS brokerage said:"We raise our DCF (WACC of 12.8% and terminal growth of 4%)-based price target to Rs800.00 due to our higher long-term growth expectations (FY25-30E EPS up by 4-6%). Our price target implies 15.5x FY23E PE and 10x FY23E EV/EBITDA. We expect JD Mart to become a competing second player with a 25% market share in the next three years and contribute 19-27% of revenues in FY23-25E."
2. 36PM: HDFC share rises over 2%
HDFC share was trading higher ahead of Q2 earnings today. HDFC stock gained 2.30% to Rs 1967 against previous close of Rs 1922.75 on BSE. The stock has gained after 4 days of consecutive fall. The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. During last one year, the share has lost 8.39% and fallen 19.21% since the beginning of this year.
In a month, the stock has gained 9%.
2. 27PM: Cement sector update
Centrum Broking said in its note," Cement prices in October 2020 stayed buoyant as Pan-India cement prices increased 2.8% MoM to Rs344/bag compared to Rs335/bag in September 2020 (driven by southern region). The buoyancy in prices was seen returning back following the monsoon withdrawal from almost all the regions in the country and pre-festival demand gradually gaining momentum
We retain our BUY rating on Ambuja Cement, Orient Cement and Star Cement while have upgraded Ultratech to BUY from ADD earlier in our 2QFY21 update. We assign Add rating to ACC and Heidelberg Cement. We maintain our Reduce rating on Ramco Cements and JK Cement (JKCE) to Reduce (largely due to valuation concerns). We maintain our Sell rating on JK Lakhsmi Cement, Shree Cement and India Cements."
2. 12PM: DCB Bank update
LKP Securities said in its note,"We expect the bank to post a ROA/ROE of 1%/10.9% by FY22E led by cautious balance sheet growth along with slight deterioration in asset quality. We value the bank at P/BV of 0.75xFY22E Adj. BVPS of Rs 124 to arrive at price target of Rs 93. Thus, we recommend BUY."
2.00 PM: YES Bank shares drops 7% in one week
YES Bank stock, fell for the sixth straight session today, over 7%, since last Monday when the lender reported its June-Sept quarter earnings.
YES Bank share price opened today at Rs 12.41 and later hit intraday high of Rs 12.60. Although, the stock erased gains and fell 1.6% to the intraday low of Rs 12.21, as against the earlier close of Rs 12.42 on BSE.
1. 54 PM: ICICI Bank update
On ICICI Bank, We expect its loan book to fatten cautiously at CAGR of 10% over FY21-23E, led by balanced growth across segments. In our opinion, the bank's asset quality may witness some hiccups and estimate return ratio ROA/ROE of 0.9% and 8.6% inFY22E. We value the standalone entity at 1.9xFY22E BVPS (Rs 188) and its investment in subsidiaries and JVs Rs 114 per share; we arrive at a target price of Rs 471. We recommend BUY rating with a potential upside of 20%.
1. 40 PM: YES Bank update
ICICI Securities said,"The anticipated capital erosion risk at one go from unrecognised stress is scaled down and deferred. However, given the challenging environment and the existing stress pool, credit cost will offset operating profit in the interim, thereby, suppressing earnings. Super-imposing potential medium term return profile on valuation multiple of 1.1 times FY22 adj book suggests turnaround progress is fairly captured in valuations."
1. 30 PM: Global markets
Key U.S. events this week including the presidential election, Federal Reserve meeting and the release of major corporate results. US Dow closed 157 points negative on Friday. Dow Fut was trading 3 points negative. European indices closed mixed in the range of -0.4% to 0.5%. The Asian indices are trading mixed in range of -0.65% to 1.35%
1. 23PM: Cummins India update
JMFL in it snote said," Cummins India results beat expectations by a wide margin. Net sales reported a 11% YoY decline in sales (14% above JMFe), while adj EBITDA grew by 25% YoY (vs our expectation of 40% decline), as margins jumped to 16.4% (+480 bps YoY). Sales improvement was led by a V-shaped recovery in exports (+18% YoY) due to low base, pent-up demand and healthy recovery in emerging markets. Domestic sales declined 22% YoY, mainly by power-gen sales (-35%) and industrials (-21%) while distribution recovered well (-3%). Higher share of exports and distribution drove improvement in gross margins to 38.1% (+310bps), while cost actions taken by the company led to a sharp reduction in fixed expenses. Given high volatility in sales, management refrained from providing an outlook, but we believe robust exports momentum, recovery in domestic business and sustainability of cost-cutting initiatives are likely to keep margins elevated. Hence, we expect KKC is likely to keep surprising street estimates going forward. We maintain BUY with revised TP of INR550."
1.09 PM: M&M update
Amarjeet Maurya - AVP - Mid Caps, Angel Broking said," In the month of October 20, overall M&M tractor sales grew ~2%. Domestic sales in October 2020 were at 45,588 units, as against 44,646 units during October 2019. Exports for the month stood at 970 units (growth of 23% over last year). M&M continue to witness unprecedented retail demand which is likely to be higher than wholesale numbers on back of expectations of a higher Kharif output and good cash flow in the market. Auspicious festival days ahead, coupled with mechanization requirements for ongoing Kharif harvesting and impending Rabi sowing season augurs well for the industry."
12. 53 PM: Real Estate sector update
Uddhav Poddar, MD, Bhumika Group said, "The ongoing festive season is expected to witness return of buyers in the realty market. It is majorly going to be driven by section of end-users with pent-up demand since the month of March. Festive offers and flexible payment plans would be other key drivers that will give confidence to the buyers for making a high-end and essential investment like property. Purchasing an asset like real estate is generally a once in a lifetime opportunity for many, and with multiple factors interplaying to make this investment convenient and less burdening on the overall budget of buyer, festive time would be an opportune time to drive more sales in realty. Due to the Covid situation people have realised the importance of owning tangible assets such as real estate and that is driving demand."
12. 47 PM: Shriram Transport Finance update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," Shriram Transport Finance (STFC) reported a moderate set of Numbers for Q2FY21. AUM grew at 4.8% YoY and 1.4% QoQ led by 8% growth in used vehicles. PAT declined by 10.5% YoY due to 2% growth NII and other income declined 53%.Asset quality improved as GNPA/ NNPA ratio declined to 6.4%/ 3.6% from 8.0%/ 5.1% in Q1. Management expects AUM to grow at 5-6% in FY21 and for the next two-quarters disbursement would reach pre covid level of Rs. 12000-13000cr. Managemen guided credit cost of less than 2.8% compared to earlier guidance of 3%. currently Shriram transport trading at 0.7x of FY22 Adj Book value, which is lower compared to historical valuation, however, an investor would wait for the final restructuring number and slippages from the moratorium book in Q3FY21."
12. 34 PM: IDFC First Bank update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said, "IDFC First Bank reported very good set numbers for Q2FY21. Bank's liability franchisee building and retailisation of the book journey is going well ahead of management guidance. Total advance declined 1% YoY and grew 3% QoQ. However, the retail book grew at 25%/7% YoY/QoQ and the corporate book continues to decline. NII grew at 22% YoY and sequentially 2%, NIM% rose to 4.57% in Q2 FY21 from 3.43% in Q1 FY20 and 4.53% in Q1 FY21. Other income grew at a healthy rate owing to treasury gain. PPOP grew 92% YoY primarily owing to healthy NII and treasury gain.
On the Asset quality front, GNPA declined 12bps to 1.87% and PCR stands at 68%. Bank has released Rs.811 cr worth of provision from telecom exposure considering the improvement in financials. Same Rs.811 cr used to improve Covid led provision. during Q2-FY21, the Bank has taken additional provision of Rs. 1,400 crore towards COVID-19 to strengthen its balance sheet further. Including this, as of 30 September 2020, the Bank holds such provision of Rs. 2,000 crore which is 2.21% of its standard advances.
On deposit front bank continues to show very healthy numbers. Customer Deposit grew at 35% YoY /11% QoQ, CASA ratio grew at 660bps to 40.4%.
We have a BUY recommendation on IDFC First bank considering attractive valuation ( 0.9x FY22E Adj BV) and healthy traction in liability."
12. 22 PM: Market update
Market indices traded on a bearish note on Monday, amid mixed global equities. Sensex fell 100 points lower at 39,555 and Nifty fell 40 points to 11,600.
12. 09 PM: ICICI Bank share rises over 6%
ICICI Bank share rose over 6% in early trade today after the lender reported over six-fold rise in Q2 net profit. Share of ICICI Bank gained 6.64% to Rs 418.65 against previous close of Rs 392.55 on BSE. The banking stock opened with a gain of 6.47% at Rs 418.65 against previous close of Rs 392.55 on BSE.
ICICI Bank share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
In one year, the share has lost 10.84% and fallen 23.53% since the beginning of this year.
11. 42 AM: Gold price trades flat
Gold price fell on Monday after trading flat for two consecutive sessions, following weak global cues. However, the yellow metal continued to trade above Rs 50K mark in India as the safe-haven asset appealed to investors amid rising coronavirus cases.
Gold October Futures on the Multi Commodity Exchange-traded flat at Rs 50,700 after hitting an intraday high and low of Rs 50,612 and Rs 50,777, respectively. On the contrary, Silver September Futures traded at Rs 61,590 per kg today, rising Rs 725 over the last close of Rs 60,865 per kg.
11. 30 AM: Coronavirus toll
In India, coronavirus cases crossed 82-lakh mark with total deaths standing at 1.22 lakh. Worldwide, there were 468 lakh confirmed cases and 12 lakh deaths from COVID-19 outbreak.
11. 16 AM: Rupee falls 30 paise
The rupee depreciated 30 paise to 74.40 against the US dollar in opening trade on Monday tracking muted domestic equities and strong American currency amid global risk aversion.
10. 50 AM: Nifty Outlook
As per Geojit Financial: last week, we had warned of 11400-11200, but the pull back on Friday, after brief penetration of 11585 suggests that the play is still that of a parallel consolidation, and therefore, the 12250-380 hopes are not dead yet. However, we will look for a confirmation, by way of a break of 11815 before upsides are played with conviction. Expect 11660 to ask questions initially, and inability to float above the same, would be a bear sign.
10. 43 AM: Top losers and gainers
Reliance Industries, followed by HCL Tech, TCS, Asian Paints, Bajaj Auto, Infosys and HUL were among the top gainers. On the other hand, ICICI Bank, IndusInd Bank, Bharti Airtel and SBI were among the gainers.
10. 32AM: Global markets
Asian markets are trading higher as Chinese manufacturing activity grew in October to 53.6, which was higher than analyst estimate.
U.S. markets closed lower on Friday as investors reacted to the rising coronavirus cases in US and Europe and due to the growing uncertainty over US Presidential election outcome. European markets closed higher on Friday on the back of better than expected economic data amid worries regarding fresh restriction to fight rising coronavirus cases. Oil price fell adding to previous day's losses on rising concerns over demand as coronavirus cases rose in Europe and US.
10. 23 AM: Reliance Industries share falls below Rs 2,000
Reliance Industries Ltd (RIL) share was trading lower after the Mukesh Ambani-led conglomerate announced its Q2 earnings for the current fiscal. RIL stock fell up to 4.47% to Rs 1962 against previous close of Rs 2,054 on BSE. The large cap share trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
10. 12 AM: Nifty technicals
On markets opening --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The Nifty broke 11600 on Friday which made the short term trend bearish. The index could fall further and hit 11400 as a potential target. 11700-11750 is the range of the resistance and any upside can be expected only if we start trading above these levels."
10.00 AM: Stocks to watch today on November 2
Reliance Industries, Axis Bank, Just Dial, DLF, M&M, ICICI Bank among others are the top stocks to watch out for in Monday's trading session
9. 54 AM: Market turns red
Market indices traded on a bearish note on Monday, amid mixed global equities. Sensex fell 200 points lower at 39,393 and Nifty fell 60 points to 11,581.
9. 41 AM: Global markets
Asian stocks are trading higher on Monday, amid positive manufacturing data out of China. US, stock indexes closed lower on Friday, as a record rise in coronavirus cases and jitters over the presidential election snuffed investor sentiment.
European markets traded mostly lower after UK Prime Minister Boris Johnson announced Saturday that England will adopt a second national lockdown following a surge in virus cases.
9. 33 AM: Nifty outlook
Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking) said,"Post some pause in the September series, the benchmark index once again resumed its uptrend seen from the April series. The October series brought back some optimism as we saw a V-shaped recovery in the first half of the series. Stronger hands are starting November series with 'Long Short Ratio' below 50%; which is certainly not an encouraging sign. The volatility index is now trading on the higher side of the recent range and we expect it to surge further considering the event lined up. In Nifty options front, 12000 followed by 12500 and 11500 followed by 11000 are attracting traders' attention. At present, 11500-11600 is an immediate support for the market and 12000 remains the sturdy wall. "
9. 24 AM: Opening session
Market indices opened on a bullish note on Monday, amid positive global equities. SGX Nifty on the Singapore Exchange was rising by 30 points, indicating a positive trend in domestic grounds today. Sensex gained 88 points higher at 39,702 and Nifty gained 13 points to 11,655.
9. 12 AM: Market outlook
Reliance Research said in its note," NSE-NIFTY failed to continue prior weekly rising trend as weakness across the globe dragged the ind ex down. In the last week, the index gained once out of five trading sessions and reported fall of 2.4%. On the weekly chart, the index has formed Bearish Belt Hold pattern. On Friday, the index closed below its crucial point-11,661 level. As mentioned earlier, a stable move below that crucial point will confirm short-term bearish reversal for the index. 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."
9.00 AM: FII action
Foreign portfolio investors (FPIs) sold shares worth Rs 870.88 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 631.11 crore in the Indian equity market on 30 October, provisional data showed.
8. 50 AM: Week Ahead in Share Market
Amid less participation from broader indices and weakness in global markets, analysts have taken a highly cautious stance for the markets in the upcoming week. Traders said rising COVID-19 cases in the US and Europe, and delay in the second US stimulus package have left investors wary.
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. HDFC, Cadila Healthcare, Punjab National Bank, NTPC, Cadila Healthcare, Oracle Financial, Whirlpool of India, Ramco Cement, ZEEL, Escorts, Bandhan Bank, Coromandel International, City Union Bank, Embassy Office Parks REIT, Escorts among others will report Q2 earnings today.
8. 30 AM: Closing
Extending weakness for the third day, Sensex ended 135 points lower at 39,614 and Nifty fell 28 points to 11,642 on Friday. On BSE, 1,464 stocks declined and 1,336 scrips advanced, 969 stocks declined on Nifty, with 889 stocks advancing.
During the week, the 30-share BSE index Sensex and NSE Nifty 50 fell by 1071 points and 288 points, respectively.
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