InterGlobe Aviation Q2
Airline company InterGlobe Aviation (IndiGo) on October 29 said its loss widened to Rs 1,194.8 crore in Q2 FY21, higher than the loss of Rs 1,062 crore posted in the corresponding quarter of the previous financial year.
However, the number was better-than-expected as a CNBC-TV18 poll had estimated the loss to the tune of Rs 1,897 crore.
The company's revenue for the said quarter came at Rs 2,741 crore against Rs 8,105.2 crore. This, too, was above the CNBC-TV18 poll of Rs 2,678 crore
Ajit Mishra, VP - Research, Religare Broking:
Market inched further lower and lost nearly half a percent amid muted global cues. After the gap down start, the benchmark oscillated in a range till the end and settled closer to the lower band. Volatility remained on the higher side, thanks to unwinding and rollover of October month derivatives contracts. Finally, the Nifty index settled at 11,671 levels; down by 0.5%. On sector front, Auto, FMCG and Capital goods dragged the indices lower.
We reiterate cautious stance as there is high uncertainty in global markets due to recent surge in COVID cases. A decline below 11,600 in Nifty would pave way for further slide. In case of a rebound, 11,750 would act as a hurdle. Traders should limit their leveraged positions and maintain a balanced approach.
Vinod Nair, Head of Research at Geojit Financial services:
As expected the Indian stock market has turned its focus from Q2 result driven rally to international developments as global market is worsening. Markets across the world are volatile because of rising corona cases impacting the recovery of economy and ambiguities over the US election and stimulus package.
Additionally, today Indian indices ended weak following October monthly F&O expiry. This weakness can stay for the short-term, a reversal can happen as strong fiscal and monetary stimulus is expected from governments and central banks in the world to overcome the crisis.
Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking:
Jitters on the street ahead of the US elections and dimming hopes of a stimulus plan from the US administration in near term have led to the recent rise in Dollar Index from a multi-week low. Adding to that, uncertainty due to the second wave of COVID-19 cases hitting the US and Europe has also dented investor sentiments, leading to sell off in global as well as domestic equities.
All of these factors have played their part in pushing the rupee lower after a long period of consolidation around the 73-72.80 zone, wherein it witnessed a depreciation of around 0.60% in today’s trade.
Going ahead, eyes would be on the ECB policy meeting as well the US Q3 GDP data. Amid a shaky landscape, rupee still looks to find some breather around 74.50 mark. However if that is also taken out, 75 mark also looks likely on the cards.
S Ranganathan, Head of Research at LKP Securities:
As we approach the Presidential Elections in the US, markets today anxiously awaits earnings of the BIG-4 in the US. While the Nifty arrested its fall today with select stocks in Cement & Banking pulling their weight, the broader markets saw buying across select names in Pharma & Sugar.
Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services:
The continuation of pandemic in absence of a vaccine is creating a havoc and is playing out in fx market. The fear that economic conditions are going to get worse before they get better, is keeping the dollar strong against EM currencies. Adding to this mood is uncertainty of the US presidential election outcome. So, next week the chances of USDINR trading above 74 are higher and expect the spot pair to trade within 73.50-74.50.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The markets have kept above the 11650 level upon closing. We need to see if we break that tomorrow. Should that happen, we would be commencing the November series on a negative note as the Nifty can then go down to 11400-11450 levels. On the upside, we have a stiff resistance at 11900-11950.
Market Close:
Benchmark indices continued the sell-off on the second day on October 29 with Nifty ends October F&O series below 11700 on the back of weak global cues.
At close, the Sensex was down 172.61 points or 0.43% at 39,749.85, and the Nifty was down 58.80 points or 0.50% at 11,670.80. About 1019 shares have advanced, 1542 shares declined, and 170 shares are unchanged.
Asian Paints, UltraTech Cement, Shree Cements, HCL Tech and Kotak Mahindra Bank were among major gainers on the Nifty, while losers were L&T, Titan Company, ONGC, Adani Ports and Tata Motors.
Except IT and energy, all other sectoral indices ended lower led by FMCG, pharma, metal and auto. BSE Samllcap index shed 0.5 percent.
Zydus Cadila receives tentative approval:
Zydus Cadila has received tentative approval from the USFDA to market Dapagliflozin Tablets, 5 mg and 10 mg (US RLD: Farxiga Tablets). Dapagliflozin is a sodium-glucose cotransporter 2 (SGLT2) inhibitor indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus and to reduce the risk of hospitalization for heart failure in adults with type 2 diabetes mellitus and established cardiovascular disease or multiple cardiovascular risk factors.
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Rupee ended lower near 74.05 on broad sell off in capital markets globally, giving some strength to US Dollar Index. Weak stock strong dollar along with month-end oil importers demand supported USDINR. 74.55-74.65 can be on cards in coming sessions.
Dr. Reddy's partners with Department of Biotechnology:
Dr. Reddy’s Laboratories announced its partnership with Biotechnology Industry Research Assistance Council (BIRAC), Department of Biotechnology (DBT), Government of India, for advisory support on clinical trials of Sputnik V vaccine in India
Havells India Q2
The company's Q2 net profit jumped 81.8% YoY at Rs 326 crore against Rs 179.3 crore and revenue was up 10.2% at Rs 2,459.5 crore versus Rs 2,232.65 crore, reported CNBC-TV18.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 79.2% at Rs 421.9 crore versus Rs 235.5 crore and margin was up at 17.1% versus 10.55%.
Gold Updates
Gold inched up on Thursday after a sharp slide in the previous session as a halt in the dollar's rally supported some safe- haven buying driven by surging coronavirus cases and the approaching U.S. elections.
Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services:
Gold was a little changed trading near a one-month low hit in the previous session, as fears of the economic impact from a fresh wave of the novel coronavirus in Europe kept the dollar around a one-week high. Leaders of France and Germany ordered their countries back into lockdown, as a massive second wave of infections threatened to overwhelm Europe before the winter.
Focus right now is on the US Presidential election although increasing virus numbers is again posing a threat to the global growth. Apart from the second wave concerns, President Trump's comment regarding the Corona relief bill being passed after the election put further pressure on the metal.
Today market participants will keep an eye on the ECB policy meeting scheduled later today and also on the Q3 GDP data expected from the US, which could keep the volatility high. Broader trend on COMEX could be in the range of USD 1865- 1895 and on domestic front prices could hover in the range of Rs 50,120-50,750.
European markets trade flat
Bank Of Baroda Q2
The company has posted Q2 net profit at Rs 1,678.6 crore versus Rs 736.7 crore and net interest income (NII) was up 6.9% at Rs 7,507.5 crore versus Rs 7,024.8 crore, reported CNBC-TV18.
Nifty Auto Index shed 1 percent dragged by the Tata Motors, Maruti Suzuki, BHarat Forge:
Rupee close
Indian rupee ended 24 paise lower at 74.11, amid selling seen in the domestic equity market.It opened at lowest level against the dollar since August 27 at 74.04 per dollar versus previous close of 73.87 and traded in the range of 73.94-74.16.
Maruti Suzuki Q2
Net profit was up 1 percent at Rs 1,371.6 crore against Rs 1,358.6 crore (YoY). Revenue was up 10.4 percent at Rs 18,744.5 crore against Rs 16,985.3 crore(YoY). EBITDA was up 20.4 percent at Rs 1,933.6 crore against Rs 1,606.3 crore (YoY). EBITDA margin stood at 10.3 percent against 9.5 percent (YoY).Tax expenses at Rs 376.2 crore against Rs 213.4 crore (YoY). Other income at Rs 602.5 crore against Rs 920 crore (YoY).
IDBI Bank to raise up to Rs 6000 crore
The bank Board approved raising up to Rs 6,000 crore via issue of equity shares
Johnson Controls-Hitachi Q2:
Net loss at Rs 19 crore against loss of Rs 0.6 crore (YoY). Revenue was down 17.7 percent at Rs 310 crore against Rs 376.6 crore (YoY). EBITDA loss was at Rs 5.1 crore against EBITDA profit of Rs 2 crore (YoY).
BPCL Q2
Standalone net profit grew 8.3 percent at Rs 2,248 crore against Rs 2,076.2 crore (QoQ). Standalone revenue was up 29.3 percent at Rs 50,146.4 crore against Rs 38,785 crore (QoQ). Standalone EBITDA was down 1.7 percent at Rs 3,851.1 crore against Rs 3,915.8 crore (QoQ). Standalone EBITDA margin stood at 7.7 percent against 10.1 percent (QoQ). One-time loss was at Rs 124.6 crore.
Arvind Q2
Net Profit went down 98.5 percent at Rs 0.7 crore against Rs 48.1 crore (YoY). Revenue was down 33.5 percent at Rs 1,305.2 crore against Rs 1,962.2 crore (YoY). EBITDA was down 37.7 percent at Rs 121.5 crore against Rs 195 crore (YoY). EBITDA margin stood at 9.3 percent against 9.9 percent (YoY). One-time loss was of Rs 22.3 crore.
ICICIdirect on KPR Mill
: With the new garmenting capacity coming on stream from H2FY22E onwards, we build in capacity utilisation rate of ~25 percent and subsequent ramp up to 70 percent by FY23E. We expect the garmenting division to be the next growth engine and register revenue CAGR of 15 percent, with share of garments in overall revenues inching up from 42 percent in FY20 to 51 percent in FY23E. Higher proportion of garmenting enhances overall margin profile as the segment yields margins in the range of 22-23 percent while high asset turnover would translate into RoCE improvement by 370 bps to 23 percent in FY20-23E.
We like KPR Mill as a structural long term story to play the apparel export space. We maintain buy rating on the stock with a revised target price of Rs 850 (10x FY23E EPS).
Nifty Metal Index slipped 1 percent dragged by the SAIL, Hindustan Zinc, MOIL:
Strides Pharma Q2
The company's Q2 net profit rose 10.5% YoY at Rs 79.2 crore versus Rs 71.7 crore and revenue was up 11% at Rs 797.1 crore versus Rs 718 crore, reported CNBC-TV18.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 10% at Rs 165.6 crore and margin was at 20.8 percent.
Nish Bhatt, Founder & CEO, Millwood Kane International:
The slide for the Indian rupee continues, as it slips below the 74/$ level, INR is now trading at a 2-month low. The US dollar has strengthened as investors flock to a safe haven in times of uncertainty. The rising number of COVID cases has forced governments in a few EU countries to enforce lockdown.
We are just a week away from the US Presidential election and the lack of clarity on the new stimulus package has created market uncertainty. Reports emerging that the Indian government is finalizing the next stimulus package to boost sentiment and bring growth back on track. Going forward a clear outcome from the US election, clarity on stimulus package from the US, and the Indian government will guide the INR.
BSE Capital Goods index shed 1 percent dragged by the L&T, BHEL, Bharat Electronics, ABB:
ICICIdirect on Axis Bank:
The management held its guidance to remain well above industry credit growth, though it is currently cautious on certain segments. It can see minimal loans going for restructuring (estimated 1.6% of loans). Strong capital position, healthy operating metrics and reasonable prudence in provisioning provides comfort for steady earnings visibility and return ratios reaching 0.9% RoA and ~9% RoE by FY22. ICICIdierct value the bank at 1.6x FY22E ABV to arrive at a revised target price of Rs 600 (from Rs 530) and maintain buy.
Market Updates
Benchmark indices erased early losses and trading flat with Nifty above 11700.
At 12:08 IST, the Sensex was up 40.56 points or 0.10% at 39963.02, and the Nifty was up 1.10 points or 0.01% at 11730.70. About 807 shares have advanced, 1396 shares declined, and 131 shares are unchanged.
Zydus Cadila gets USFDA approval
Zydus Cadila has received tentative approval from the USFDA to market Linagliptin Tablets, 5 mg (US RLD: Tradjenta Tablets).
Linagliptin is a dipeptidyl peptidase-4 (DPP-4) inhibitor indicated as an adjunct to diet and exercise to improve glycemic control in adults with Type 2 diabetes mellitus.
The drug will be manufactured at the group’s formulation manufacturing facility at the SEZ, Ahmedabad. The group now has 310 approvals and has so far filed over 390 ANDAs since the commencement of the filing process in FY 2003-04.
Buzzing
Ajanta Pharma share price gained 4 percent on October 29 after the company mulls buyback of equity shares.
At the Board meeting, the Board of Directors will consider a proposal for buyback of the equity shares of the company including matters related /incidental thereto and any other matter as the Board of Directors of the Company may decide during the course of the meeting.
Nifty PSU Bank index shed 1 percent dragged by Canara Bank, PNB, Bank of Baroda:
Pidilite Industries acquires Indian subsidiary of Huntsman Group:
Pidilite Industries share price rose 2 percent on October 29 after the company acquired Indian subsidiary of Huntsman Group.
The company board approved a definitive agreement with Huntsman Group (USA) for acquiring 100% stake in one of their subsidiaries in India namely, Huntsman Advanced Materials Solutions Private Limited (HAMSPL), as per the release.
This said acquisition is for a cash consideration of approximately Rs 2100 crore, excluding customary working capital and other adjustments, subject to certain preconditions being met prior to the closing of the transaction.
Rupee Updates
Indian rupee is trading 16 paise lower at 74.03, amid selling seen in the domestic equity market.It opened at lowest level against the dollar since August 27 at 74.04 per dollar versus previous close of 73.87.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking
: Oil prices corrected 5.52 percent on MCX on October 28, and Brent crude oil corrected by 3.98 percent and currently trading at USD 37.36 per barell. This is due to coronavirus infections in the USA and Europe and again fear of lockdown and lower fuel demand. Libya production is also expected to rebound to 1 million barrels per day. Brent is also trading lower at USD 39.66 per barell. We expect price may continue trade lower on the back of lower demand. US crude stockpiles rose more than expected in last week as production surged in a record build. However hurricane Zeta may curb the sharp downfall in crude oil.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments:
We broke the support of 11,650 upon opening itself. Since we opened with a gap down, I would study the markets for the next couple of hours to see if the Nifty sustains these levels or goes back above 11,650. Traders can then look at initiating shorts below 11,650 for a target of 11,450. The upside is capped at the resistance level of 11,900.
Buzzing Stock
Dr Reddy's Laboratories share price was up over a percent. The company on October 28 reported a 30.2 percent year-on-year decline in consolidated profit in the Sepetmber quarter. The global generics business registered a 21 percent YoY growth, with North America rising 28 percent, Europe 36 percent and India 21 percent in the quarter ended September 2020. Global research firm Credit Suisse has maintained an outperform call on the stock and has cut target to Rs 5,550 from Rs 5,750 per share.
HAL signs contract with Tech Mahindra
Hindustan Aeronautics (HAL) and Tech Mahindra (TM) signed a contract worth Rs 400 crore recently in Bengaluru for implementation of Enterprise Resource Planning (ERP) to support HAL’s ‘Project Parivartan’.
Market Updates
Benchmark indices are trading lower with Nifty below 11,700.
At 10:27 IST, the Sensex was down 162.58 points or 0.41% at 39759.88, and the Nifty was down 54.10 points or 0.46% at 11675.50. About 669 shares have advanced, 1294 shares declined, and 117 shares are unchanged.
ICICIdirect on Bharti Airtel:
Bharti Airtel continues to report resilient numbers, especially on the Indian wireless business front. The major positive read through is strong subscriber addition and ARPU traction that percolated into superior EBITDA (incremental margins of ~70%). ICICIdierct see the favourable industry structure of three players (two being strong), a good enough kicker for eventual hike in tariff as well as superior digital play in the medium to long term.
Current valuations underestimate massive possibility of growth in a consolidated market and the resilience shown by Airtel so far. Broking house maintain buy rating on the stock with a DCF based target price of Rs 700 per share.
Rupee slips
Indian rupee slipped in the early trade on Thursday as it opened at lowest level against the dollar since August 27.It opened 17 paise lower at 74.04 per dollar versus previous close of 73.87, amid selling seen in the domestic equity market.
On October 28, the local currency ended lower by 16 paise at 73.87 verus Tuesday's close of 73.71.
ECB to pave way for more stimulus as recession fears grow:
The European Central Bank is expected to resist pressure to unveil fresh stimulus measures on Thursday but it will likely pave the way for action in December as fresh restrictions aimed at containing the coronavirus pandemic fuel fears over a new recession.
Having already lined up unprecedented firepower to prop up the 19-member currency bloc's economy, the ECB is in no hurry to act, as its ongoing bond buying could keep markets calm well into next year. Policymakers also appear keen to push governments to take the lead.
L&T Q2
Company reported consolidated profit at Rs 5,520.3 crore in Q2FY21, a jump of 118 percent compared to the year-ago period due to the divestment of electrical and automation business to Schneider Electric, France.
Profit before exceptional item stood at Rs 1,410.3 crore for the quarter, falling 44.7 percent compared to Rs 2,551.67 crore in same period last year.
Company recorded consolidated gross revenues of Rs 31,035 crore for the quarter ended September 2020, declining 12 percent YoY due to the lingering impact of the pandemic during the quarter under review.
Dollar Updates
The dollar held gains against a basket of major currencies on Thursday as escalating coronavirus cases in Europe stoked fears across markets that fresh lockdowns would further hit the already fragile economic recovery.
Gainers and Losers on the BSE Sensex:
Market Opens:
Indian indices opened lower on October 29 with Nifty below 11,650 on weak global markets amid rising cases of coronavirus worldwide.
At 09:16 IST, the Sensex was down 308.76 points or 0.77% at 39613.70, and the Nifty was down 94 points or 0.80% at 11635.60. About 231 shares have advanced, 743 shares declined, and 39 shares are unchanged.
