Experts say the market will likely remain rangebound till the US presidential elections in the first week of November and the focus will be on second-quarter earnings season, COVID-19 updates and global cues.
The BSE Sensex closed the week below the 40,000-mark, down 526.51 points at 39,982.98, while the Nifty50 failed to hold on to the psychologically important 12,000 level, falling 151.75 points to 11,762.45. Broader markets, too, were under pressure, with the Nifty Midcap index falling 1.8 percent.
Amber Enterprises | Vanguard Group Inc A/C Vanguard Emerging Markets Stock Index Fund A Series of V I E I F bought 2,46,949 equity shares in the company at Rs 2,042.81 per share on the NSE. However, Integrated Core Strategies (ASIA) Pte Ltd sold 1,83,459 shares at Rs 2,034.02 per share. (Image: ambergroupindia.com).
IDBI Bank | The share price was up 12 percent after an inter-ministerial feedback was received for IDBI Bank divestment and would be up for an in-principle approval from the cabinet soon, CNBC-TV18 reported. On privatisation of banks, the sources said the government is going as per the plan as far as the strategic sale of government stake in IDBI Bank is concerned.
Tata Steel | The stock gained 6 percent after the steel maker's total production was up 31.3 percent at 7.26 mt against 5.53 mt (QoQ). Total production, however, was down 3.5 percent at 7.26 mt against 7.52 mt (YoY). India production grew 2 percent at 4.59 mt against 4.50 mt (YoY) while on a QoQ basis it was up 53.5 percent at 4.59 mt against 2.99 mt. Jefferies retained a 'buy' call on the stock, with a target of Rs 485 per share.
Vedanta | The stock was down 22 percent after billionaire Anil Agarwal-backed firm's delisting offer was deemed to have failed. Accordingly, equity shares of the company and those tendered by the shareholders in the delisting offer will continue to remain listed on the exchanges. Promoters of the metal major required 134.1 crore shares to successfully delist from the exchanges. However, their five-day reverse book building process that ended on October 9 evening saw only 125.47 crore confirmed bids. As per the demand schedule released by the BSE, about 12.32 crore shares tendered are yet to be confirmed.
Mindtree | The share price shed 11 percent after the company reported its second quarter earnings. The company reported 19 percent QoQ jump in its consolidated net profit at Rs 253.7 crore against Rs 213 crore in the quarter ended June 2020. Dolat Capital sees current valuations unwarranted and maintained a 'sell' rating on the stock with the target price of Rs 1,190 valued at 17x FY23E earnings (implies 1.5x on PEG basis).
Wipro | The stock was down over 9 percent after the company announced its second-quarter earnings. The company posted a 3.2 percent sequential growth in consolidated profit for the quarter ended September 2020, while IT services segment earnings were ahead of analysts' estimates. Citi downgraded the stock to neutral with target at Rs 400 while Goldman Sachs has a 'sell' rating with the target at Rs 277.
UPL | The stock price fell 6 percent after KPMG resigned as the auditor with effect from October 8 for the company’s material arm in Mauritius- UPL Corporation to re-organise the audit process to improve productivity at the company's request. “This is to inform you that the company has received the attached communication dated 14th October, 2020 from UPL Corporation Limited, Mauritius, a material subsidiary of the Company,” UPL said in an exchange filing on October 15.
Shilpa Medicare | The share price was down 10 percent after the company received a warning letter from the United States Food and Drug Administration (USFDA). The company, in its release said, it received a warning letter on October from USFDA for its Jadcherla facility in Telangana.
CreditAccess Grameen | The stock shed 8 percent in the week gone by. The company in a regulatory filing announced that the executive, borrowings and investment committee of the board of directors considered and approved issuance of NCDs in favour of Bank of India. The NBFC will issue 1,000 rated, listed, senior, secured, redeemable, taxable, non-convertible debentures of face value of Rs 10 lakh each, aggregating up to Rs 100 crore on a private placement basis. The coupon rate is 9.15 percent per annum, with tenor fixed at 18 months and a maturity date of April 20, 2022.
Tata Elxsi | The stock price gained 8 percent after the company reported a 58.3 percent increase in net profit to Rs 78.8 crore for the September 2020 quarter. It reported a net profit of Rs 49.8 crore in the year-ago period, Tata Elxsi said in a regulatory filing. Its revenue from operations rose 11.5 percent to Rs 430.2 crore for the said quarter from Rs 385.8 crore in the corresponding period a year ago, CNBC-TV18 reported.
First Published on Oct 18, 2020 10:46 am