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Equity trade near day's low; PSU banks decline

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Capital Market
Last Updated : Oct 28 2021 | 10:50 AM IST
Benchmark indices traded sideways near the day's low in morning trade. The Nifty slipped below the crucial 18,100 mark. All sectoral indices on the NSE traded in the red.

At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 384.42 points or 0.63% to 60,758.91. The Nifty 50 index fell 129.15 points or 0.71% to 18,081.8.

The selling was broad based. The S&P BSE Mid-Cap index fell 0.38% while the S&P BSE Small-Cap index declined 0.71%.

The market breadth turned negative. On the BSE, 1078 shares rose and 1848 shares fell. A total of 134 shares were unchanged.

Results Today:

Bajaj Finserv (down 0.18%), NTPC (down 0.57%), AU Small Finance Bank (down 0.25%), Coromandel International (down 0.35%), DLF (down 1.52%), Gujarat Gas (up 1.06%), SBI Cards And Payment Services (down 0.12%), Interglobe Aviation (up 0.42%), Marico (down 0.5%), RBL Bank (down 0.89%), Tata Power Company (down 0.87%), GMM Pfaudler (down 0.03%), GNFC (down 1.84%), Gujarat State Fertilizers & Chemicals (down 0.3%), JK Tyre & Industries (down 1.74%) and UTI Asset Management Company (down 0.8%) will announce their quarterly results today.

Earnings Impact:

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Bajaj Auto rose 0.99%. The automobile manufacturer's standalone net profit grew 12% to Rs 1,275 crore on a 22% increase in revenue from operations to Rs 8,762 crore in Q2 FY22 over Q2 FY21. Turnover soared 22% to Rs 9,081 crore in Q2 FY22 from Rs 7,442 crore in Q2 FY21. EBITDA jumped 10% to Rs 1,434 crore in Q2 FY22 as against Rs 1,300 crore in Q2 FY21. EBITDA margin stood at 16.4% in Q2 FY22 as compared to 18.2% in Q2 FY21. Operating profit spurted 11% to Rs 1,367 crore in Q2 September 2021 over Rs 1,233 crore in Q2 September 2021.

Lupin fell 2% after the drug maker reported a consolidated net loss of Rs 2098.04 crore in Q2 FY22 as against net profit of Rs 211.02 crore in Q2 FY21. Consolidated net sales rose 5.86% to Rs 4,003.42 crore in Q2 FY22 over Q2 FY21. Pre-tax loss stood at Rs 2204.78 crore in Q2 FY22 as against pre-tax profit of Rs 360.21 crore in Q2 FY21. EBITDA rose 3.7% to Rs 628.50 crore in Q2 FY22 over Q2 FY21. EBITDA margin stood at 15.7% in Q2 FY22 lower than 16% in Q2 FY21. EBITDA for Q2 FY2022 includes an adverse impact of about 80 bps for one-time costs related to US specialty restructuring.

ITC declined 2.56%. The conglomerate reported a 13.7% rise in standalone net profit to Rs 3,697 crore on an 11.2% increase in net revenue to Rs 12,543 crore in Q2 FY22 as compared with Q2 FY21. EBITDA improved by 12.9% to Rs 4,615 crore in Q2 FY22 from Rs 4,088 crore in Q2 FY21.ITC said that the quarter witnessed broad-based recovery in sales across markets and channels. However, unprecedented inflation in key input costs coupled with significant disruptions in global supply chains and logistics weighed on the operating environment. With respect to the cigarettes business, the company said that cigarette volumes witnessed smart recovery with exit volumes at near pre-COVID levels, after segment witnessed significant disruptions in Q1, Broad-based recovery witnessed across markets during the quarter; however, certain markets in Kerala and East remain relatively subdued.

Buzzing Index:

The Nifty PSU bank index declined 3.14% to 2,846.05, snapping its three-day winning run. The PSU bank index saw profit booking after rising 4% in three days.

Indian Bank (down 3.99%), Union Bank of India (down 3.26%), Bank of Baroda (down 3.22%), Bank of India (down 2.47%), Bank of Maharashtra (down 2.07%) and SBI (down 1.76%) were top losers in PSU bank space.

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First Published: Oct 28 2021 | 10:28 AM IST

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