Ajit Mishra, VP - Research, Religare Broking:
Markets traded range bound and ended marginally higher amid weak global cues. The benchmark opened in the red but buying in the select index majors especially from IT and banking majors pared the losses in no time. It hovered range-bound thereafter and movement on the stock-specific front kept the participants busy.
Finally, The Nifty index settled at 11,897 levels. The broader markets too performed largely in line with the benchmark wherein both Midcap and Smallcap ended higher by 0.5% and 0.3% respectively. On the sector front, Realty, Telecom and IT were the top gainers whereas Oil & Gas, Power and FMCG ended in the red.
Markets are closely following global cues and indications are still mixed from that front. Despite the positive bias, we might continue to see volatile swings so traders should prefer hedged positions and maintain their focus on the selection of stocks.
Vinod Nair, Head Of Research at Geojit Financial Services:
The strength of Indian market is supported by the good Q2 results announced till date, in expectation of a further fiscal stimulus and drop in the rate of daily covid cases. Till date the optimism of the market is limited to blue-chips and sectors like IT & Banks. To improve the breadth of the market in the future, a lot will depend on the trend of Q2 result, which has a very positive view.
This buoyancy was also supported by global trend which faded due to lack of consensus in the US to sign a fiscal package before the election and no hope of talks between EU-UK. Volatility is expected going forward but market will maintain its optimism in-line with stock-wise Q2 result, size of the domestic stimulus and global developments.
Cipla launches Nintib
Cipla has launched generic Nintedanib for the treatment of Idiopathic Pulmonary Fibrosis (IPF). Available as 100 mg and 150 mg capsules, it will be marketed under the brand name Nintib.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments:
The markets have entered into a rangebound zone - between 11650 and 12050. For an impulsive move to trigger, we would need to get past one of these levels on the back of good volumes. Until then traders are advised to maintain caution.
Market Close
: Indian indices rose for the third straight session on October 20 amid mixed global markets.
At close, the Sensex was up 112.77 points or 0.28% at 40544.37, and the Nifty was up 23.80 points or 0.20% at 11896.80. About 1344 shares have advanced, 1299 shares declined, and 157 shares are unchanged.
HCL Tech,Tech Mahindra, Asian Paints, HDFC Bank and Bharti Airtel were among major gainers on the Nifty, while losers included Britannia Industries, ONGC, GAIL, IOC and UPL.
On the sectoral front, IT index gained 1 percent followed by the pharma and auto, while energy, FMCG, metal and PSU bank indices closed in the red.
Abhishek Bansal, Founder Chairman, Abans Group:
Nickel prices rallied to 11-month highs on Monday, and are now trading at $15,700. Robust demand from stainless steel mills is supporting this rally, in the backdrop of a lower dollar, and healthy industrial growth in China.
Nickel prices found additional support from delays in Indonesian production capacity expansion, which will result in short-term shortage of raw materials for the EV industry.
Nickel prices are likely to continue their positive move, while above the key support level of the 20-days EMA of $14,902. Meanwhile, a critical resistance could be seen around $15,755-$15,987 levels.
Gujarat Ambuja Q2
The company's consolidated net profit at Rs 72.8 crore versus Rs 14.5 crore and revenue was up 9 percent at Rs 989.3 crore versus Rs 908.4 crore, reported CNBC-TV18.
Crude Updates
Oil prices fell on Tuesday on worries that a resurgence of coronavirus cases globally is stifling a recovery in fuel demand while growing Libyan output adds to already plentiful supply.
BSE Oil & Gas Index slipped 1 percent dragged by the ONGC, IOC, HPCL:
LIC reduces stake in ICICI Bank
As per the BSE shareholding pattern the LIC has reduced its stake in the company to 8.87% in September quarter from 10.15% in June quarter. It has sold 3,74,36,314 share in the July-September quarter.
Happiest Minds partner with Veridify Security
Happiest Minds is now a global systems integrator partner with Veridify Security. Veridify Security and Happiest Minds will collaborate globally to provide innovative public-key security solutions that will help customers accelerate time-to-market and lower IoT project deployment costs. The initial security and DOME deployments will focus on IoT, industrial, automotive, and building automation applications.
HUL Q2 result
The company has posted Q2 net profit at Rs 2,009 crore, while revenue was at Rs 11,442 crore. It has declared interim dividend of Rs 14 per share.
Market Updates
Benchmark indices erased some of the gains but trading higher with Nifty around 11900.
At 14:24 IST, the Sensex was up 163.31 points or 0.40% at 40594.91, and the Nifty was up 33.90 points or 0.29% at 11906.90. About 1132 shares have advanced, 1282 shares declined, and 137 shares are unchanged.
Ravindra Rao, VP- Head, Commodity Research, Kotak Securities:
Comex gold was trading 0.5 percent lower near $ 1,902 after gaining 0.3 percent the previous day. Gold weakened as the dollar index stabilised after a fall on October 19. Uncertainty over US stimulus is weighing on gold but ETF inflows and safe-haven buying amid rising virus cases and uneven economic recovery are supporting prices. Gold may remain choppy on volatility in the dollar and equity markets at large but rising global uncertainty may increase its safe-haven appeal, lending support to prices.
Rupee ends lower
Indian rupee ended lower by 10 paise at 73.46 per dollar, amid buying seen in the domestic equity market.It opened flat at 73.37 per dollar against previous close of 73.36 and traded in the range of 73.29-73.52.
Kajaria Ceramics Q2:
Consolidated net profit fell 3.75 percent year-on-year (YoY) to Rs 89.6 crore against Rs 93.1 crore.
Revenue slipped 0.3 percent YoY to Rs 712.5 crore against Rs 714.7 crore. Consolidated EBITDA grew 36.5 percent to Rs 143.7 crore against Rs 105.2 crore YoY.
EBITDA margin came at 20.2 percent against 14.7 percent YoY.
Buyback Offer Approval
"The board of directors on October 19has unanimously approved a proposal for the buyback of 1,41,74,469equity shares (representing 2.28 percent of the paid-up share capital) from the shareholders at a price of Rs110per share payable in cash for an aggregate consideration not exceeding Rs155.92 crore," KIOCL said in its BSE Filing.
Market Update
Equity benchmarks continued to trade higher for third consecutive session on October 20 with the Nifty50 trading above 11,900 mark, driven by IT, select auto, FMCG, Bharti Airtel and L&T.
The Nifty50 climbed 49.30 points to 11,922.30, while the BSE Sensex gained 216.33 points at 40,647.93.
Sunteck Realty Acquires 50-Acre Land
Sunteck Realty said it has entered into an agreement to acquire approximately 50-acre land parcel in Vasind.
"The project will offer approximately 2.6 million square feet. Envisaged as a one of the large residential development under ‘Sunteck World’ brand in Thane District, the project will have a revenue potential of Rs1,250 crorespanning over next 4-5 years," company detailed about project.
Buyback Offer
Dhanuka Agritech has opened its share buyback offer on October 22 and will continue till November 3, 2020.
The company has decided to buy back 10 lakh equity shares from shareholders and has fixed the offer price at Rs 1,000 per share.
SENSEX GAINERS AND LOSERS
Analyst's Take on L&T's new contract
Larsen & Toubro is set to emerge as the lowest bidder for design and construction of civil works of high speedrail corridor of Mumbai and Ahmedabad. The company has bidded Rs 24,985 crore for constructing 237.1 km bullet train projects. This project is the largest among all construction linescovering 47 percentof 508.2 km project.
"In competitive bidding, three bidders involving seven infrastructure companies participated in it. Other bidders were Afcon Infrastructure-Ircon International- JMC Projects India consortium and Tata Project- NCC- J Kumar Infra Projects-HSR Consortium. We see this as a positive development for L&T, as winning such big orders in a muted ordering activity environment alleviates new order concerns,"Keshav Lahoti - Associate Equity Analyst at Angel Broking told Moneycontrol.
European markets trade flat with negative bias
Strides Pharma gets USFDA nod
Strides Pharma Science's step-down wholly owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, has received approval for Ethacrynic Acid Tablets USP, 25 mg from the United States Food & Drug Administration (USFDA). The product is a generic version of Edecrin Tablets, 25 mg, of Bausch Health Americas, Inc.
Dr. Reddy’s re-launch Famotidine Tablets
Dr. Reddy’s Laboratories announced the relaunch of over-the-counter (OTC) Famotidine Tablets USP, 10 mg and 20 mg, the store-brand equivalents of Original Strength and Maximum Strength Pepcid AC, in the U.S. market, as approved by the U.S. Food and Drug Administration (USFDA).
ICICI Direct on Equitas Small Finance Bank:
Equitas Small Finance Bank (ESFB) is a mass market focused small finance bank (SFB), providing banking products and services to unserved and underserved segment. It is the largest SFB in India in terms of number of banking outlets and second largest SFB in India in terms of AUM and total deposits as on FY19.
ESFB has a diversified portfolio with advances growing at 34% CAGR from FY18-20 to Rs 13747 crore (Rs 14389 crore as on June 2020). During the same period, deposits grew at 39% CAGR to Rs 10788 crore (Rs 11787 crore as on June 2020). Asset quality has remained steady with GNPA ratio at 2.68% and NNPA ratio at 1.48% as on June 2020. Operationally, conversion into SFB led to rise in cost to income ratio (67.2% in FY20). Earnings came in at Rs 243.6 crore in FY20 and Rs 57.7 crore in Q1FY21.
ESFB had strong advances growth along with maintaining asset quality. Unserved and underserved customers as target offer a vast opportunity for business growth. We have a subscribe recommendation on the stock. At Rs 33, the stock is available at ~1.2x Q1FY21 P/BV (post fresh issue) and at ~16.3x P/E at Q1FY21 PAT (annualised basis).
Granules India Q2
The company's consolidated Q2 net profit rose 71% YoY at Rs 163.6 crore against Rs 95.8 crore and revenue rose 22.7% at Rs 858.1 crore versus Rs 699.5 crore, reported CNBC-TV18.
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking:
For Q2FY21, HDFC life reported a good set of numbers, APE growth of 21% YoY is one of the big positive for HDFC life. Par business was the key for healthy growth, it grew by 254% YoY while Non-Par declined 19% YoY and ULIP fell 6% YoY. VNB margin expanded by 30bps to 25.6% for Q2FY21 owing to better product mix and operating efficiency.
Persistency trends in the 13th/25th month improved by 200bp/400bp, led by improvement in the PAR/Protection segment. HDFC life currently; trading at 4.96x of Q2FY21 Embedded value. If we compared with listed life insurance players HDFC life is trading at a premium valuation.
Equitas Small Finance Bank IPO subscribed 12%
The initial public offering of Equitas Small Finance Bank, the subsidiary of Equitas Holdings, has subscribed 11.6 percent on October 20, the first day of bidding.
The Rs 518-crore public issue has received bids for 1.36 crore equity shares against offer size of 11.58 crore equity shares, the data available on exchanges.
BSE Realty Index added 1 percent led by the Oberoi Realty, Brigade Enterprises, Sobha:
Britannia Industries slips 5%
Britannia Industries share price slipped over 5 percent intraday on October 20, a day after the company came out with its second-quarter earnings.
The company reported a 23.2 percent year-on-year growth in consolidated profit at Rs 498.13 crore for the quarter ended September 2020 but an 82 percent increase in tax expenses hit profitability.
The company's consolidated revenue grew by 12.1 percent year-on-year to Rs 3,419.11 crore in the July-September quarter.
Market Updates
Benchmark indices are trading near the day's high level with Nifty above 11900.
At 11:30 IST, the Sensex was up 215.10 points or 0.53% at 40646.70, and the Nifty was up 51.60 points or 0.43% at 11924.60. About 1115 shares have advanced, 1007 shares declined, and 138 shares are unchanged.
Rupee flat
Indian rupee is trading flat at 73.36 per dollar, amid buying seen in the domestic equity market.It opened flat at 73.37 per dollar against previous close of 73.36.
Buzzing
Hatsun Agro Products share price shed 2 percent on October 20, a day after the board recommended issuance of bonus shares and proposed raising funds through Qualified Institutional Placement (QIP).
The dairy firm reported a net profit of Rs 65.79 crore for the quarter ended September against Rs 25.24 crore posted in the same quarter a year ago. The company’s revenue rose 3.79 percent YoY to Rs 1,327 crore from Rs 1,278.55 crore.
India must not neglect bank recap despite pandemic: Viral Acharya
India is neglecting bank recapitalisation as it focuses on debt moratoriums and interest waivers for borrowers amid the COVID-19 pandemic, a former central bank official told Reuters on Monday. Restoring banks' capital is critical for aiding a meaningful recovery, but there has been little focus on the matter, former RBI Deputy Governor Viral Acharya said.
"This lack of focus is tantamount to kicking the can down the road and jettisoning financial stability for short-term gains," said Acharya, who recently wrote a book titled the "Quest for Restoring Financial Stability in India".
Buzzing Stock
Mangalore Refinery and Petrochemicals share price was up over a percent after the company’s board approved acquisition of OMPL’s shares from ONGC. “MRPL was holding 51.0017 percent of the paid up equity of OMPL, which has been increased to 99.9998 percent pursuant to the acquisition of equity shares from ONGC,” the company said.
ICICIdirect on Tata Communications
: The consistent performance of the data segment is impressive with step up in margins led by scale and cost initiatives. Notwithstanding, some benefits which may wane off, we expect revenue growth traction (likely to step up by FY21 end) to keep the margins trajectory firm. The company’s strategic growth plan, focused approach and consistent improvement in data segment continues to drive multiple re-rating, which is visible in the price run up. We believe continued performance and deleveraging possibilities bode well for the company. We maintain buy with a revised target price of Rs 1055 per share.
Zydus Cadila gets final USFDA approval
Zydus Cadila has received final approval from the USFDA to market Solifenacin Succinate Tablets, (US RLD: Vesicare Tablets) in the strengths of 5 mg and 10 mg. Solifenacin Succinate is a symptomatic treatment of urge incontinence and/or increased urinary frequency and urgency as may occur in patients with overactive bladder syndrome.
Hexaware trading to be discontinued
The trading in the equity shares of the company (Scrip Code: 532129) will be discontinued with effect from November 2, 2020 and the equity shares will be delisted from BSE with effect from Monday, November 9, 2020, as per BSE notice.
Trading on NSE will be suspended from with effect from November 2, 2020 (i.e. with effect from closing hours of trading on October 30, 2020) and further the admission to dealings in the security, shall be withdrawn (delisted) from NSE with effect from November 9, 2020.
Rupee Opens
Indian rupee opened flat 73.37 at per dollar on Tuesday against previous close of 73.36, amid buying seen in the domestic equity market.
On October 19 rupee ended flat at 73.36 per dollar against Friday' close of 73.34.
Wipro bags contract
Wipro has won an Application Management (AMS) and Services Integration & Management (SIAM) contract from Fortum, one of the leading clean-energy companies headquartered in Espoo, Finland.
As a part of the five-year agreement, Wipro will manage Fortum’s application portfolio across hundreds of applications for more than 11,500 users across 18 countries and provide 24/7 support for business-critical applications.
Nifty IT Index added 1 percent supported by the HCL Tech, Mphasis, Mindtree:
Sunteck Realty acquires 50 acres land
Sunteck Realty has entered into an agreement to acquire approx 50-acre land parcel in Vasind. The project will offer approximately 2.6 million square feet.
The project will have a revenue potential of Rs 1,250 crore (Rs 12.5 Billion) spanning over next 4-5 years.
ICICIdirect:
The dollar index is likely to remain volatile due to election and Fed’s speech, which would provide some trigger to EM currencies. However, writing activity in 73.5 strike Call are likely to keep pair move in check.
The dollar-rupee October contract on the NSE closed near 73.38 in the last session. The open interest fell 2.8% in the last session.
Gainers and Losers on the BSE Sensex:
Market Opens:
Indian indices opened marginally lower on October 20 with Nifty around 11850.
At 09:16 IST, the Sensex was down 56.66 points or 0.14% at 40374.94, and the Nifty was down 18.80 points or 0.16% at 11854.20. About 340 shares have advanced, 432 shares declined, and 54 shares are unchanged.
Keshav Lahoti - Associate Equity Analyst, Angel Broking:
On a Consolidated basis for Q2FY21, Britannia Industries reported 12.1% growth in revenue to Rs 3,419 crore. Due to improvement in gross margin, the company's operating profit margin increased by 370 basis points to 19.8%. Operating margin expanded due to benign raw material cost and impact of operating leverage due to increase in volume.
For the quarter, operating profit and PAT increased by 37.3% and 22.5% respectively. Jump in PAT was less than operating profit due to an increase in tax rate and finance cost compared to last year. Numbers missed street expectation on all fronts of revenue, operating profit and PAT. While the Government is easing restrictions and the economy is on the path of recovery, we believe it will take some time for business to be back to normal.
