Aamar Deo Singh, Head Advisory, Angel Broking:
Markets continued to shrug off the US Presidential Elections jitters, with Bank Nifty witnessing a second consecutive spectacular day of rally, gaining 3.17%. Banks & Financials led from the front, ahead of the Supreme Court hearing on Loan Moratorium on 5th November. Nifty, too witnessed a sharp rally, ending the day at 11,813, up 144 points. Amongst the Top 3 Nifty gainers, ICICI Bank, Hinadalco and SBI, whereas UPL, NTPC and Reliance, were the Top 3 Nifty Losers. Reliance, the index heavyweight continued to be a drag on the index. Overall, markets are expected to remain volatile due to this being US election week, so trading with caution is advised. Overall, Nifty has support around 11600-11650 whereas resistance is seen around 11950-12050.
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities:
Indian market rose after a massive surge in the US stock futures and unusual strength in European and Asian markets. Nifty 50 index climbed 1.24 percent to close at 11813. The Bank Nifty surged by 3.17 percent for the second consecutive day to end the day at 25682.
The Nifty has broken the trading range of the last three days at 11750 and hit the resistance of 20 days SMA, which is at 11825. On Wednesday, we could see Indian market being volatile, ahead of the exit poll on prediction after the completion of voting in the US that would drive the sentiment of the market.
Buying is advisable if Nifty comes back to 11750/11700 levels with a final stop loss at 11650. On the higher side, 11900/11950 would be the resistance zone, where one need to book profits on long positions.
Ajit Mishra, VP - Research, Religare Broking:
Markets registered strong gains in today’s session largely led by positive global cues. The benchmark index opened gap up and gradually inched higher as the day progressed. Finally, the Nifty ended higher by 1.2% at 11,814 levels. However, the broader market indices underperformed as both Midcap and Smallcap ended higher by 0.4% and 0.3% respectively. On the sector front, banking continued to witness strong buying interest for the second consecutive session. Apart from banking, Auto, Metal and Consumer Durables also posted decent gains.
All eyes are on the US election and participants will be closely eyeing the signals from global indices for cues. We’re already witnessing volatile swings across the board and do not expect any relief from that front in the near future. Considering the scenario, traders should prefer defensives and other low beta stocks until we see some stability.
Vinod Nair, Head of Research at Geojit Financial Services:
Market maintained its momentum supported by increased demand for banking stocks due to improvement in business outlook. Globally too, the market was on a strong footing as the US manufacturing data surpassed expectations and a similar rebound was seen across Europe and China. Markets are also sustaining its confidence ahead of the upcoming Fed meeting, as it is not expecting an increase in rates and easing measures to recover the economy.
S Ranganathan, Head of Research at LKP Securities:
Banking & Auto stocks led the charge today as Bulls took centrestage with support of the Pharma pack too in late afternoon trade backed by good earnings. The broader markets saw buying in Metals & the Insurance sector.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
It is not advisable to initiate or keep short positions in the market. The longs would trigger if we can keep above the 11800-11850 levels for a couple of days and that should take the index to 12200-12300 levels during the course of this month. Until this happens, traders are advised to maintain a cautious stance and wait for the right time to enter into directional trades.
Market Close:
Market ended on strong note with Nifty above 11,800 and Sensex jumped over 500 points supported by the financial and metal stocks.
At close, the Sensex was up 503.55 points or 1.27% at 40261.13, and the Nifty was up 144.30 points or 1.24% at 11813.50. About 1391 shares have advanced, 1215 shares declined, and 179 shares are unchanged.
ICICI Bank, Hindalco, SBI, HDFC and Power Grid Corp were among major gainers on the Nifty, while losers were UPL, NTPC, Reliance Industries, Nestle and HCL Tech.
Except energy, all other sectoral indices ended in the green led by the bank, metal and pharma. BSE Midcap and Smallcap indices rose 0.3-0.4 percent.
JSW Energy Q2
The company's consolidated net profit up 1.9% at Rs 356.3 crore versus Rs 349.7 crore and revenue was down 8.5% at Rs 1,938.6 crore against Rs 2,118.6 crore, reported CNBC-TV18.
Yash Gupta- Equity Research Associate, Angel Broking:
Godrej Property reported area booked for the quarter at 1.72 Mn sq-ft down by 23% as compared to 2.25 Mn sq-ft in Q2FY20. Pre-sales for the quarter at Rs 1,074 crores down by 26% as compared to Rs 1,446 crores in Q2FY20. Adjusted EBITDA stood at Rs 82 crores down by 57% from Rs 191 crores in Q2FY20.
Adjusted EBITDA margins have also come down at 34.6% from 51.6% in Q2FY21. Consolidated total income from operation at 238 crores in Q2FY21 down by 36% as compared to 370 crores in Q2FY20. Consolidated PAT stood at Rs 7 crore in Q2FY21 down by 77% as compared to Rs 32 crore in Q2FY20. Net debt has increased from Rs 1752 crore in Q1FY21 to Rs 2733 crore in Q2FY21. Reported Results are very weak in line with expectations and even the debt levels have increased significantly.
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Rupee ended higher on back of strong inflows in capital market mainly banking and financial sector. Also the dollar index kept trading muted on back of awaiting outcome of US Elections which can decide a possible trend for Dollar index.
Crude prices saw rise after strong decline it has witnessed in recent past few days which kept rupee rise at check. For next couple ofsessions rupee can be in a very volatile range of 73.75 - 75.25 range.
Sun Pharma Q2
The company posted 70.4 percent jump in its Q2 consolidated net profit at Rs 1,813 crore against Rs 1,064 crore and revenue was up 5.3% at Rs 8,553 crore versus Rs 8,123.4 crore, reported CNBC-TV18.
Hitesh Jain, Lead Analyst – Institutional Equities, YES Securities:
The deadlock over US stimulus package will also dominate eyeballs, however, we think that Democrats and Republicans will eventually ink a deal given the rising labour retrenchment and risks to the consumer spending.
On US dollar, we see greenback losing ground against the basket of currencies as President Trump returns to the White House and expectations of stimulus negotiations materialize into a deal.
After US elections, there is also a strong chance that Democrats have a majority in Senate, which implies higher fiscal spending. In terms of connotation for the markets, we should brace for a transient sell-off in US equities and fall in US dollar, Ergo, Gold could rally higher, helped by a tumbling US dollar and concerns of higher fiscal spending and potentially rising inflation.
Needless to mention, Fed will remain tolerant of the same, with the central bank recently articulating that it will stand pat on interest rates for the next three years.
If Trump reclaims Presidency and Republicans maintain majority in the US Senate, we could have an ensuing stock market rally and stronger US dollar, as investors will be pleased with the fact that US corporate taxes will remain low.
In case of a mixed equation, where Biden turns out to be the next US President, while Senate is controlled by Republicans. Markets will construe this sort of power sharing as an impasse on various reforms and nothing dramatic will be seen in the next four years.
Dabur Q2
The company's consolidated net profit rose 19.3% YoY at Rs 482.9 crore versus Rs 403.6 crore and revenue jumped 13.7% at Rs 2,516 crore versus Rs 2,212 crore.
Nifty Auto Index added 1 percent led by the Eicher Motors, Hero MotoCorp, Bajaj Auto:
Rupee ends higher
Indian rupee ended marginally higherat74.40per dollar, amid buying seen in the domestic equity market.
It opened 10 paise higher 74.33 per dollar against previous close of 74.43 and trade in the range of 74.25-74.41.
Lincoln Pharma Q2:
Consolidated net profit was up 10.6 percent at Rs 20.9 crore against Rs 18.9 crore (YoY). Consolidated revenue gained 12 percent at Rs 126.1 crore against Rs 112.7 crore (YoY). Other income at Rs 0.6 crore against Rs 2.5 crore (YoY).
Deepak Fertilisers Q2:
Consolidated net profit at Rs 79.3 crore against Rs 25 crore (YoY). Consolidated revenue jumped 22 percent at Rs 1,404 crore against Rs 1,151 crore (YoY). Consolidated EBITDA jumped 65.7 percent at Rs 193.2 crore against Rs 116.6 crore (YoY). Consolidated EBITDA stood at 13.7 percent against 10.1 percent (YoY).
Eris Lifesciences Q2:
Consolidated net profit grew 16.2 percent at Rs 107.7 crore against Rs 92.7 crore (YoY). Consolidated revenue was up 15.9 percent at Rs 330 crore against Rs 285 crore (YoY). Consolidated EBITDA was up 13.2 percent at Rs 124.3 crore against Rs 110 crore (YoY). Consolidated EBITDA margin stood at 37.7 percent against 38.6 percent (YoY).
Abhishek Bansal, Founder Chairman, Abans Group:
Silver prices are trading higher, after the release of global PMI data. Manufacturing activity across the world has improved in October, which has boosted the demand for industrial metals, such as silver. However strength in the Dollar Index is keeping the rally limited. Manufacturing activity has improved in all major economies of the world. US Markit Manufacturing PMI has improved to 53.4 in October, against 53.3 expected. The Caixin/Markit Purchasing Managers’ Index for Chinese manufacturing came in at 53.6 for October, better than the forecast of 53.0. Manufacturing growth in the Eurozone boomed in October. IHS Markit’s final Manufacturing Purchasing Managers’ Index climbed to 54.8 in October from September’s 53.7, its highest reading since July 2018.
Silver prices are likely to find support near the 200-days EMA at USD 22.113, while critical resistance is seen near USD 24.71-25.18 levels. Silver prices are likely to find fresh direction from the result of the US presidential election.
Delhi HC rejects AstraZeneca plea
There is a big win by Alkem over AstraZeneca after Delhi High Court rejected the plea by later one claiming patent infringement by Intas, Alkem.
Delhi High Court refused to stay Intas, Alkem from manufacturing, selling anti-diabetes drug DAPA, reported CNBC-TV18.
Rupee Updates
Indian rupee is trading higher at 74.31 per dollar, amid buying seen in the domestic equity market. It opened 10 paise higher 74.33 per dollar against previous close of 74.43.
Cadila Healthcare files IND application of ZYIL1
Zydus has filed the IND application of ZYIL1, a novel oral small molecule NLRP3 inhibitor candidate. Following up on its initiatives to fight COVID 19 with diagnostics, vaccines and therapeutics, the company is now focussing on cutting edge research to bring targeted therapies that can selectively modulate the inflammatory responses caused by the Cytokine Storm.
Blackstone starts talks to launch IPO by Aadhar Housing Finance
Blackstone, the world’s largest alternative asset manager and the largest owner of commercial real estate in India, has launched early-stage discussions to evaluate an initial public offering (IPO) by its portfolio company Aadhar Housing Finance, people familiar with the matter told Moneycontrol.
If plans fructify, this would be the first IPO in the Indian housing finance segment in more than two years. The last one came from Jaipur-based Aavas Financiers, which launched its Rs 1,640-crore IPO on October 25, 2018.
The listing of Aadhar Housing Finance would also be the first IPO of an Indian portfolio company backed by the US private equity giant in the past five years. In October 2015, fragrance maker SH Kelkar backed by Blackstone launched a Rs 500-crore IPO.
Steel Strips Wheels bags export order
Steel Strips Wheels (SSWL) share price added 3 percent on November 3 after company confirms export orders of nearly 23,000 wheels for EU trailer market, to be executed in the month of December from its Chennai plant.
TCS & B3i announce partnership
Tata Consultancy Services has partnered with B3i Services AG, a global industry-led blockchain initiative, to design, develop and launch ecosystem innovations based on distributed ledger technology (DLT) for the insurance industry.
Meghmani Organics to expand caustic soda plant
Meghmani Finechem a material subsidiary of Meghmani Organics is expanding its existing Caustic Soda Plant from 294000 TPA to 400000 TPA alongwith upgrading Captive Power Plant capacity from 96 MW to 132 MW at its Chloroalkali and Derivative complex at Dahej, Bharuch.
Total cost of the project will be Rs 230 crore for Caustic expansion and additional Captive Power Plant. This additional Caustic Pant is expected to be operational by March, 2022 and shall add the additional revenue of Rs 250 crore per annum.
Market Updates
Benchmark indices extended the gains with Nifty above 11800.
At 11:54 IST, the Sensex was up 492.70 points or 1.24% at 40,250.28, and the Nifty was up 140.60 points or 1.20% at 11,809.80. About 1366 shares have advanced, 851 shares declined, and 134 shares are unchanged.
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking:
HDFC Ltd reported a good set of numbers for Q2FY21, despite Covid related disruption. AUM grew 10% & 1.6% YoY / QoQ , NII grew at 20% / 7% YoY / QoQ which is higher than AUM growth. NIM improved sequentially by 14bps to 2.76% owing to the lower cost of funds and Money raised through QIP. Core PBT was up 27% YoY on the back of a strong 20% YoY growth in NII and a marginal 3% YoY decline in expenses. PAT declined 28% YoY owing to one of stake sale gains reported in Q2FY21. Adjusted for one of gains in Q2FY21, PAT grew at 28% YoY, led by strong core PBT and a 42% plunge in provision cost.
On the collection efficiency (CE) front, HDFC's overall CE in the individual business was 96.3% in September 2020; 99.5% in the case of customers who had not opted for a moratorium.
We have a positive view on HDFC considering the ability to raise capital at a very competitive rate and more provision than regulatory requirement provides comfort on asset quality.
ICICIdirect on Bandhan Bank:
Prudent management, lower restructuring pipeline and improving collection efficiency bode well for a high margin/ RoA generating bank. Provision buffer at 2.8% of advances provides comfort. Focus on expanding in housing segment to reduce balance sheet risk while improving business parameters will aid earnings profile and return ratios to return to >3% RoA and >20% RoE. We maintain our target price to Rs 400/share, valuing the stock at 3x FY22E ABV (~13x FY22E EPS). We upgrade from hold to buy as stock price moderated from highs and valuations look reasonable now.
Nifty Metal Index added 1 percent supported by the Jindal Steel, Hindalco, Hindustan Zinc:
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The markets are trading above the 11750 mark and if we can sustain that, it could be used as a stop loss for all short positions on the index. We would need to wait for more clarity before we can go long on this market. Should a buy get triggered on the upside, 12200-12300 can be expected.
Rupee Updates
Indian rupee is trading higher at 74.31 per dollar, amid buying seen in the domestic equity market.It opened 10 paise higher 74.33 per dollar against previous close of 74.43.
Yash Gupta Equity Research Associate, Angel Broking:
NTPC consolidated revenue from operations for Q2FY21 stood at Rs 27,707 crores up by 7.8% YoY from Rs 25,708 crores in Q1FY21. Revenue from generation business has increased by 8.6% from Rs 25178 in Q2FY20 to Rs 27343 crores in Q2FY21. Profit before tax for the quarter stood at Rs 3729 crore down by 9.3% as compared to Rs 4112 Crore in Q1FY20, due to Central electricity regulation commission has directed that late payment surcharges shall apply at a reduced rate of 12% instead of normal rate of 18%.
Profit after tax for the quarter stood at Rs 3088 crore up by 7.8% as compared to Rs 2865 crore in Q1FY20. While the company posted a good set of numbers for the quarter. Company has fixed 13th November, 2020 as the record date for the purpose of ascertaining the eligibility of shareholders for buyback of equity shares.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking:
Next couple of sessions would be very crucial to determine the near term trend for the markets. As far as the support of 11,500-11,550 is intact, we remain hopeful of a resumption of upmove. However, traders are advised to avoid aggressive trades till there’s a breakout above 11,750. Sectorial themes are providing good opportunities for day traders and hence, traders are advised to look for such stock/sector specific opportunities.
Buzzing Stock
Tata Motors share price was up over 2 percent after the auto major declared its sales numbers from the month of October. The company reported a 27 percent growth in its total domestic sales to 49,669 units in October. It had sold 39,152 vehicles in October 2019, Tata Motors said in a statement. Passenger vehicle sales during the previous month surged 79 percent to 23,617 cars as compared to 13,169 units in October 2019.
Buzzing Stock
Zee Entertainment Enterprises share price gained over a percent after Citi maintained buy call on the stock. The global research firm has retained buy rating on the stock with target at Rs 265 per share. It is of the view that Q2 was operationally in-line with cash flows improving. The firm lowered FY22/23E EPS estimates by 3-4 percent.
Tata Motors October sales
Company's total domestic sales rose 27% YoY at 49,669 units versus 39,152 units and total CV sales were up 2% at 28,472 units against 28,002 units.
CV Exports was up 20% at 2,420 units versus 2,019 units and Total PV sales jumped 79% at 23,617 units versus 13,169 units, YoY.
ICICI Lombard gets CCI approval
Competition Commission of India (CCI) approved acquisition of the non-life insurance business of Bharti AXA General Insurance Company by ICICI Lombard General Insurance Company.
Rupee Updates
Indian rupee opened 10 paise higher at per dollar on Tuesday against previous close of 74.43, amid buying seen in the domestic equity market.
On November 2 the domestic units ended 32 paise lower at 74.43 per dollar against Thursday's close of 74.11.
Nifty Bank Index added over 2 percent led by the Bandhan Bank, ICICI Bank, RBL Bank:
Buzzing
Bandhan Bank share price gained more than 3 percent on November 3 after CLSA retained "buy" rating on the stock. The private lender had on November 2 reported a 5.3 percent decline in net profit at Rs 920 crore for the September quarter.
The research firm maintained a "buy" call on the stock and raised the target from Rs 400 to Rs 430 per share. It said the asset quality and collection efficiency trends were better and the strong liabilities momentum continued with CASA at 38.2 percent, a CNBC-TV18 report said.
NTPC approves buyback
The company's board approved the share buyback of 19,78,91,146 fully paid-up equity shares of the face value of Rs 10 each at a price of Rs 115 per equity share for Rs 2,275.75 crore.
The company has fixed November 13, 2020, as the record date for the purpose of ascertaining the eligibility of shareholders for buyback of equity shares.
Gainers and Losers on the BSE Sensex:
Market Opens:
It is a strong opening for the Indian indices on November 3 with Nifty above 11750 on the back positive global cues.
At 09:16 IST, the Sensex was up 306.19 points or 0.77% at 40063.77, and the Nifty was up 91.50 points or 0.78% at 11760.70. About 677 shares have advanced, 192 shares declined, and 39 shares are unchanged.
