Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets underwent profit-taking for the third straight session as benchmark Nifty comfortably broke the intraday support of 17900, which is broadly negative. Technically, the index has formed a bearish candle and it is currently trading near 50-day sma following the sharp intra-day correction.
The intraday texture of the market is weak but strong possibility of a pullback rally is not ruled out if it succeeds to trade above 50 day SMA or 17750. For day traders, 17750-17800 would be key support levels, and as long as the index is trading above the same, bullish sentiment will be intact. On the flip side, below 17750, it could trigger short term weakness and we may see a quick intraday correction up to 17700.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty opened on a negative note on November 11 & witnessed follow through selling subsequently. On the way down, it breached a rising trendline on the hourly chart & went down to test the 40-day exponential moving average.
Selling was absorbed near the key short term moving average & the index recovered to some extent thereon. The level of 17800 indeed acted as a crucial support & will continue to provide support going ahead.
As long as the index trades above 17800, it can once again take a leap towards 18000-18100. The daily chart shows that the Nifty is witnessing oscillations between the key daily moving averages & the short term consolidation is expected to continue further.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The Nifty respected the 17800 support and ended the session above it. We are currently around the lower end of the range which is 17700. The upper end is 18100.
We need to see if we either break 17700 or close above 18100. One of the two will allow the index to break out or break down from this range-bound movement. Until then it is best to sit on the sidelines and wait for a directional move.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index showed selling pressure for the third consecutive session and closed a day at 17874 with a loss of nearly one percent. Index has shown some pullback after hitting a good demand zone of 17800 in last hour which hints 17800 will be first good support for coming session followed by 17700 zone.
Also any dip near said levels will be buying opportunity on the positional basis with keeping stop out level below 17600 zone.
The immediate hurdle is coming near 17940-18050 zone and above said levels one can expect a fresh breakouts.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers:
Indian markets opened on a negative note following mixed Asian market cues and higher than expected inflation data reported in U.S. raising concerns of an earlier-than-expected hike in interest rates in the world's largest economy.
Also, continuous foreign fund outflows subdued traders’ sentiments.
Foreign institutional investors (FIIs) were stood as net sellers in the capital market, as they offloaded shares worth Rs 469.50 crore on Wednesday. They have sold equities worth Rs 5,515 crore so far this month. On sectoral front, almost all the indices traded in red barring Metals and Consumer Durables which were marginally positive.
S Ranganathan, Head of Research at LKP securities:
Weak global cues led by rising CPI in the US spooked markets as fears of the FED being behind the curve seem to worry the street.
Back home most of the sectoral indices traded weak today but it is interesting to note that even on a weak day the street did reward companies with a positive earnings surprise, a key feature witnessed during the second-quarter earnings season.
Defence stocks saw good investor interest today given the size of the opportunity in the 'Atmanirbhar Bharat' Theme.
Vinod Nair, Head of Research at Geojit Financial Services:
Global inflationary pressure following upsetting US inflation data forced the domestic market to trade with deep cuts. Beating the market estimates, US inflation hit a 30-year high level of 6.2% YoY adding fears of an earlier than expected rate hike, while US bond yields shot higher.
Rising inflationary pressure along with prospects of an early rate hike can keep the domestic market on edge as such indicators tempt foreign investors to pump out liquidity from emerging markets like India.
Market Close:
Benchmark indices ended lower for the third consecutive session on November 11 on the back of weak global cues.
At close, the Sensex was down 433.13 points or 0.72% at 59,919.69, and the Nifty was down 143.60 points or 0.80% at 17,873.60. About 1398 shares have advanced, 1769 shares declined, and 139 shares are unchanged.
IOC, Tech Mahindra, SBI, ONGC and SBI Life Insurance were among the major Nifty losers, while gainers were Titan Company, Hindalco Industries JSW Steel, M&M and Reliance Industries.
Among sectors, Bank, FMCG, auto, IT, pharma and realty indices fell 1-2 percent, while metal index ended in the green. The BSE midcap and smallcap indices fell 0.5 percent each.
Emkay view on Bank of Baroda:
Bank of Baroda remains well-capitalised with standalone bank CET 1 of 11.4% and easing asset quality stress, which is expected to accelerate growth. This should drive up margins, which, coupled with lower LLP, should lead to gradual improvement in its RoE trajectory to 10-12% over FY23-24E from a low of 1% in FY21.
Retain buy with a revised target price of Rs 130, based on 0.8x Dec’23E ABV. The Key risks are higher NPA formation, mainly in the corporate/SME book; and slower-than-expected growth trajectory.
Sapphire Foods IPO subscribed 5.43 times on final day
The initial public offering of Sapphire Foods, YUM’s largest franchisee operator in the Indian subcontinent in terms of revenues for FY20, has been subscribed 5.43 times, so far, on November 11, the final day of bidding, garnering bids for 5.24 crore equity shares against offer size of 96.63 lakh equity shares.
Qualified institutional buyers have bought 6.16 times of the shares set aside for them, while the reserved part of non-institutional investors was subscribed 2.16 times.
Retail investors have put in bids 8.13 times the portion reserved for them.
Latent View Analytics IPO sees 17.86 times subscription on second day
The public issue of Latent View Analytics, a data analytics services provider, continues to see strong demand from investors, subscribing 17.86 times on the second day of bidding, November 11, as it received bids for 31.30 crore equity shares against IPO size of 1.75 crore equity shares.
As per the subscription data, retail investors bought shares 59 times the portion set aside for them, and the portion reserved for employees was subscribed 1.91 times.
Qualified institutional buyers have put in bids for 99 percent of shares reserved for them, and a part set aside for non-institutional investors saw 25.5 times subscription.
Richa Agarwal, Senior Research Analyst at Equitymaster:
Nykaa has had a stellar debut in a bull market. The choice for IPO investors lucky to get allocation in Nykaa, on whether they should hold or exit the stock won’t be easy. It’s the only startup that has shown profits, unlike Zomato or Paytm where there is no visibility or clear time horizon on this aspect.
The real challenge for the company now is to grow aggressively with improve margins. As a multibrand aggregator, and being a platform business, there is definitely potential to achieve both. That said, at these valuations, it beats a lot of established monopolies and the margin of safety in valuations is non- existent.
Hindustan Aeronautics Q2 results:
Hindustan Aeronautics has posted 38.3 percent rise in Q2 net profit at Rs 848.2 crore versus Rs 613.4 crore and revenue was up 14.4 percent at Rs 5,551.2 crore versus Rs 4,854 crore, YoY.
Earnings before interest, tax, depreciation and amortizations (EBITDA) rose 20.8 percent at Rs 1,242 crore versus Rs 1,028 crore and margin at 22.4 percent versus 21.2 percent, YoY.
Hindustan Aeronautics Ltd. was quoting at Rs 1,397.50, up Rs 22.20, or 1.61 percent on the BSE.
Bharat Dynamics Q2 earnings:
Bharat Dynamics has reported 64.9 percent jump in its Q2 net profit at Rs 43.2 crore versus Rs 26.2 crore and revenue was up 79.4 percent at Rs 503.8 crore versus Rs 280.8 crore, YoY.
Earnings before interest, tax, depreciation and amortizations (EBITDA) was up 25.6 percent at Rs 66.1 crore versus Rs 52.6 crore and margin was at 13.1 percent versus 18.7 percent, YoY.
Bharat Dynamics Ltd. was quoting at Rs 437.45, up Rs 15.85, or 3.76 percent on the BSE.
Kotak Institutional Equities initiates buy on Zomato
Kotak Institutional Equities initiate coverage on Zomato with a buy rating and a SoTP-based Fair Value of Rs 175.
Zomato’s leadership position in the underpenetrated food-delivery space will drive healthy revenue CAGR of 36% over FY2021-30.
Turnaround in unit economics will lead to profitability by FY2025, leaving Zomato with the bulk of its current ~ USD 2 bn cash balance intact, which can drive the company’s entry into fresh adjacencies enabling further value creation.
Market at 3 PM
Benchmark indices were trading in the red with Nifty below 17850 dragged by auto, FMCG, bank andrealty stocks.
The Sensex was down 513.04 points or 0.85% at 59,839.78, and the Nifty was down 168.50 points or 0.94% at 17,848.70. About 1265 shares have advanced, 1794 shares declined, and 128 shares are unchanged.
BSE Auto index shed 1 percent dragged by the Balkrishna Industries, Escorts, Bosch
Sapphire Foods IPO: Issue subscribed 4.82 times
The initial public offering of Sapphire Foods, YUM’s largest franchisee operator in the Indian subcontinent in terms of revenues for FY20, has been subscribed 4.82 times, so far, on November 11, the final day of bidding, garnering bids for 4.65 crore equity shares against offer size of 96.63 lakh equity shares.
Qualified institutional buyers have bought 5.59 times of the shares set aside for them, while the reserved part of non-institutional investors was subscribed 1.22 times.
Retail investors have put in bids 7.9 times the portion reserved for them.
Godrej Consumer Products Q2:
Consolidated net profit at Rs 479 crore. Consolidated revenue at Rs 3,163.6 crore. Consolidated EBITDA at Rs 659.5 crore. Consolidated EBITDA margin at 20.8%. Domestic volume growth came in at 4%.
Matrimony.com Q2
Net profit rose 66% at Rs 16.6 crore against Rs 10 crore (YoY). Revenue ws up 17.9% at Rs 110 crore against Rs 93.3 crore (YoY). EBITDA jumped 60% at Rs 26.4 crore against Rs 16.5 crore (YoY). EBITDA margin at 24% against 17.7% (YoY).
Natco Pharma Q2
Net profit was down 67.8% at Rs 65.1 crore against Rs 202.4 crore (YoY). Revenue fell 53% at Rs 377.2 crore against Rs 802.2 crore (YoY). EBITDA was down 74.5% at Rs 70.5 crore against Rs 276.7 crore (YoY). EBITDA margin at 18.7% against 34.5% (YoY).
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading 0.12% up near $81.44 per barrel for the day. MCX Crude oil November futures were trading 0.21% up near Rs 6085 per barrel by noon.
Crude oil prices are expected to trade sideways to up with resistance at $84 and support at $80 per barrel. MCX Crude oil November has support at Rs 6020 and resistance at Rs 6150.
European markets are trading flat with FTSE up marginally in the green
Lumax AutoTech Q2:
Net profit jumped 52.9% at Rs 23.4 crore against Rs 15.3 crore (YoY). Revenue was up 42% at Rs 403 crore against Rs 283.8 crore (YoY). EBITDA rose 49.5% at Rs 44.7 crore against Rs 29.9 crore (YoY). EBITDA margin at 11.1% against 10.5% (YoY).
Morepen Laboratories Q2
Net profit was up 37.5% at Rs 37.4 crore against Rs 27.2 crore (YoY). Revenue was up 17.5% at Rs 395.3 crore against Rs 336.4 crore (YoY). EBITDA rose 32.1% at Rs 42 crore against Rs 31.8 crore (YoY). EBITDA margin at 10.6% against 9.5% (YoY).
V2 Retail Q2
Net loss at Rs 3.1 crore against loss of Rs 11.3 crore (YoY). Revenue jumped 81.2% at Rs 149.5 crore against Rs 82.5 crore (YoY). EBITDA at Rs 17.5 crore against Rs 0.7 crore (YoY). EBITDA margin at 11.7% against 0.9% (YoY).
Market update at 2 PM: Sensex is down 514.39 points or 0.85% at 59838.43, and the Nifty shed 163.80 points or 0.91% at 17853.40.
PAGE Industries Q2
Net profit was up 44.7% at Rs 160.5 crore against Rs 110.9 crore (YoY). Revenue jumped 46.4% at Rs 1,084 crore against Rs 740.3 crore (YoY). EBITDA gained 41.1% at Rs 233.4 crore against Rs 165.4 crore (YoY). EBITDA margin at 21.5% against 22.3% (YoY).
Maruti Suzuki revises downward sales volume, net sales figures for FY2021
The company is placing efforts to minimize effect on production output arising from parts shortage including semiconductors and to deliver as many products as possible to our customers. Meanwhile, effect on production output is still unclear.
Therefore, with respect to full-year forecasts for FY2021, we revised downward the sales volume and net sales figures. However, despite expected decrease in production, operating profit is kept unchanged from the previous forecasts, taking into account the depreciation of Yen and cost reduction efforts.
Maruti Suzuki India was quoting at Rs 7,486.95, down Rs 21.65, or 0.29 percent.
Aadhar Housing Finance, UCO Bank enter into co-lending partnership
Aadhar Housing Finance & UCO Bank have entered into a co-lending agreement to offer Home Loans at competitive interest rates.
Through this partnership, the aim is to reach out to a large section of society for providing easy, convenient, and efficient home finance solutions to customers from the economically weaker, lower and middle-Income groups, as per the release.
UCO Bank was quoting at Rs 14.30, down Rs 0.14, or 0.97 percent.
Yes Bank share price gains 2% as Moody's upgrades rating
Yes Bank share price was up over 2 percent intraday on November 11 after Moody's upgraded the Bank's outlook to positive.
Private lender Yes Bank's issuer rating has been upgraded from B3 to B2 by Moody's Investors Service. The agency, in a report released on November 10, said it has also changed the bank's outlook "from stable to positive".
Moody's further noted that it has upgraded Yes Bank's Baseline Credit Assessment (BCA) and Adjusted BCA to b3 from caa2.
Nifty Bank index declined 1 percent dragged by the SBI, RBL Bank, IDFC First Bank
Sapphire Foods IPO issue subscribed 1.95 times
The initial public offering of Sapphire Foods, YUM’s largest franchisee operator in the Indian subcontinent in terms of revenues for FY20, has been subscribed 1.95 times, so far, on November 11, the final day of bidding, garnering bids for 1.88 crore equity shares against offer size of 96.63 lakh equity shares.
Qualified institutional buyers have bought 98 percent shares of the portion set aside for them, while the reserved part of non-institutional investors was subscribed 60 percent.
Retail investors have put in bids 6.92 times the portion reserved for them.
Gold extends gains as U.S. inflation surges
Gold prices edged higher on Thursday, extending a rally fuelled by a surge in U.S. consumer prices that spurred some demand for the metal as an inflation hedge.
Spot gold rose 0.2% to $1,852.90 per ounce by 0710 GMT. U.S. gold futures gained 0.3% to $1,854.30.
The metal rose to its highest since June 15 on Wednesday after data showed U.S. consumer prices recorded their biggest annual gain in 31 years last month.
Nifty FMCG Index fell 1 percent dragged by the Godrej Consumer Products, Emami, Tata Consumer
Market at 1 PM
Benchmark indices were trading lower with Nifty below 17900 dragged by the IT, bank, FMCG and realty stocks.
At 13:04 hrs IST, the Sensex is down 479.27 points or 0.79% at 59873.55, and the Nifty down 154.10 points or 0.86% at 17863.10. About 1310 shares have advanced, 1683 shares declined, and 132 shares are unchanged.
KCP Q2 earnings:
KCP has posted September quarter net profit at Rs 65.2 crore versus Rs 30.1 crore and revenue was up 47 percent at Rs 528 crore versus Rs 359.1 crore, YoY.
Earnings before interest, tax, depreciation and amortizations (EBITDA) was at Rs 112.4 crore versus Rs 46.7 crore and margin was up at 21.2 percent versus 13 percent, YoY.
KCP was quoting at Rs 141.45, up Rs 3.45, or 2.50 percent.
Pidilite Industries share price rises 4% posts Q2 earnings
Pidilite Industries share price rose 4 percent on November 11 after company posted better numbers for the quarter ended September 2021.
The company reported higher consolidated profit at Rs 374.6 crore in Q2FY22 against Rs 356.4 crore in Q2FY21 and revenue surged to Rs 2,626.3 crore from Rs 1,880.3 crore YoY.
Sundram Fasteners Q2 Results:
Sundram Fasteners has reported 19.6 percent jump in its Q2 net profit at Rs 122.5 crore versus Rs 102.4 crore and revenue was up 39.7 percent at Rs 1,242.3 crore versus Rs 889.3 crore, YoY.
Earnings before interest, tax, depreciation and amortizations (EBITDA) was up 22.4 percent at Rs 218.5 crore versus Rs 178.5 crore and margin was down at 17.6 percent versus 20.1 percent, YoY.
Sundram Fasteners was quoting at Rs 829.90, down Rs 26.35, or 3.08 percent.
BSE Realty index fell 1 percent dragged by the Oberoi Realty, DLF, Sunteck Realty
Market at 12 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty below 17900.
The Sensex was down 413.93 points or 0.69% at 59938.89, and the Nifty was down 132.90 points or 0.74% at 17884.30. About 1363 shares have advanced, 1603 shares declined, and 116 shares are unchanged.
Alembic Pharma share price falls 4% on weak Q2, USFDA observations
Alembic Pharmaceuticals share price fell over 4 percent intraday to Rs 757 after the company reported a weak set of numbers for the quarter ended September 2021.
On November 10, Alembic Pharmaceuticals reported 49.2 percent fall in its Q2 net profit at Rs 169.29 crore against Rs 333.37 crore and revenue was down 11.3% at Rs 1,292.32 crore versus Rs 1,457.10 crore, YoY.
In a separate press release the company informed that the United States Food and Drug Administration (US FDA) has conducted an inspection at Alembic Pharmaceuticals' Injectable Facility (F-3) located at Karkhadi from October 28, 2021 to November 10, 2021.
The USFDA issued a Form 483 with 10 observations.
Latent View Analytics IPO sees 8.75 times subscription on second day:
The public issue of Latent View Analytics, a data analytics services provider, continues to see strong demand from investors, subscribing 7.09 times on the second day of bidding, November 11, as it received bids for 15.33 crore equity shares against IPO size of 1.75 crore equity shares.
As per the subscription data, retail investors bought shares 43.35 times the portion set aside for them, and the portion reserved for employees was subscribed 1.56 times.
Qualified institutional buyers have put in bids for 15 percent of shares reserved for them, and a part set aside for non-institutional investors saw 3.49 times subscription.
YES Securities gives 'reduce' rating on India Cements
India Cements share price was trading lower in the morning session on November 11, a day after the company declared its Q2 results.
The company has reported a 69.2 percent fall in its Q2 net profit at Rs 21.97 crore versus Rs 71.43 crore last year. Its revenue was up 11.3 percent at Rs 1,190.17 crore from Rs 1,069.72 crore a year ago.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was down 43.1 percent at Rs 133.6 crore as against Rs 234.7 crore and margin at 11.2 percent versus 21.9 percent YoY.
YES Securities has a ‘reduce’ rating on the stock. The brokerage firm in its report noted that seasonal demand weakness in its core market (South), along with the inflating input cost and higher lead distance, weighed Q2 FY22 performance. However, demand is likely to rebound with the passing out monsoon, while the company's market share in the South might fall led by the peer capacity expansion.
Nifty Pharma index fell 1 percent dragged by the Alembic Pharmaceuticals, Laurus Lab, Natco Pharma
Yash Sawant, Research Associate, Angel One
The ongoing property crisis, stern energy usage limitations and the recent spike in power prices around the globe has hampered the economic recovery in China, the largest metal consuming economy.
Boost in demand for industrial metals given the resumption in global economic activities and the massive US infrastructure bill has created a supportive environment for the entire pack in the recent months.
Prices also found some strength as limited supply from China and depleting inventories across exchanges continued to hint towards a tight supply.
However, dismal demand from China remains a major setback for the Industrial metals complex.
