The domestic equity benchmarks ended near the day's high after a volatile session on Wednesday. The Nifty managed to close near the 11,900 mark. Investors across the globe were monitoring the US Presidential elections results.
As per provisional closing data, the barometer index, the S&P BSE Sensex, rose 355.01 points or 0.88% at 40,616.14. The Nifty 50 index added 79 points or 0.67% at 11,892.50.
In the broader market, the S&P BSE Mid-Cap index gained 0.39% and the S&P BSE Small-Cap index rose 0.29%.
The market breadth was negative. On the BSE, 1281 shares rose and 1313 shares fell. A total of 201 shares were unchanged.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 4,74,05,395 with 12,13,735 deaths. India reported 5,33,787 active cases of COVID-19 infection and 1,23,611 deaths while 76,56,478 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
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U.S. Presidential Election:
In-person voting is still on in many parts of the United States. But, early results are pouring in from states where polling has closed. So far, Democratic Party candidate and former vice president Joe Biden has won 238 electoral votes while President Donald Trump has won 213 electoral votes. A candidate needs 270 electoral votes to win the election.
The US Dow Jones Futures were currently up 135 points and Nasdaq futures were up 291 points.
Economy:
IHS Markit India Services PMI rose to 54.1 in October, from 49.8 in September. The figure came above the 50 no-change mark for the first time since February. The latest reading pointed to a solid rate of growth in output that was stronger than its long-run average. The upturn was supported by improved market conditions amid the loosening of COVID-19 restrictions.
The Composite PMI Output Index rose from 54.6 in September to 58 in October, signalling the strongest increase in private sector output in close to nine years. A sharp rise in factory production was accompanied by a return to growth of services activity. (Composite indices are weighted averages of comparable manufacturing and services indices.)
Meanwhile, India's trade deficit narrowed to $8.78 billion in October 2020, compared with trade deficit of $11.76 billion, an improvement by 25.34% YoY.
India's merchandise exports in October 2020 were $24.82 billion, as compared to $26.23 billion in October 2019, showing a fall of 5.4%. The value of India's merchandise imports in October 2020 was $33.6 billion, as compared to $37.99 billion in October 2019, a decline of 11.56%.
Earnings Impact:
State Bank of India (SBI) gained 0.37% at Rs 205.50. The PSU bank's net profit jumped 52% to Rs 4,574.16 crore in Q2 September 2020 from Rs 3,011.73 crore in Q2 September 2019. Total income rose 3.42% to Rs 75,341.80 crore in Q2 September 2020 over Q2 September 2019.
The ratio of gross NPAs to gross advances stood at 5.28% as on 30 September 2020 as against 5.44% as on 30 June 2020 and 7.19% as on 30 September 2019. The ratio of net NPAs to net advances stood at 1.59% as on 30 September 2020 as against 1.86% as on 30 June 2020 and 2.79% as on 30 September 2019.
Provision and contingencies fell by 23% to Rs 10,118.31 crore in Q2 FY21 from Rs 13,138.93 crore in Q2 FY20. During the quarter ending September 2020, the bank said it made an additional provision of Rs 239 crore on COVID-19 related accounts. The bank now holds a total of Rs 3,247 crore COVID-19 related provisions.
Jyothy Labs gained 1.49% to Rs 132.45 after consolidated net profit rose 12.20% to Rs 60.13 crore on 6.24% increase in revenue from operations to Rs 504.49 crore in Q2 September 2020 over Q2 September 2019.
CARE Ratings hit an upper circuit of 20% at Rs 365.20 on the BSE. The counter witnessed volume of 2.8 lakh shares, a 18.52 times surge over two-week average daily volume of 15115 shares. The company's board has recommended interim dividend of Rs 8 per share.
On a consolidated basis, CARE Ratings' net profit declined 2.8% to Rs 35.46 crore on 5.9% rise in net sales to Rs 75.88 crore in Q2 FY21 over Q2 FY20. The announcement of on-tap TLTROs and the government's additional spending on capex should help to revive private investment and we would be keenly watching whether this will lead to more differentiated issuances in the bond market which is still biased towards the financial sector, said Ajay Mahajan, MD & CEO of CARE Ratings.
Adani Gas rose 3.88% to Rs 231.50. The company's standalone net profit rose 12.7% to Rs 135.67 crore on a 11.6% decline in net sales to Rs 417.86 crore in Q2 FY21 over Q2 FY20. EBITDA has increased by 48% YoY to Rs 218 crore versus Q2 FY20 EBITDA of Rs 147 crore.
Total sales volume declined 10% year-on-year (YoY) to 131 million standard cubic meters (mmscm) during the quarter. CNG sales volume stood at 59 mmscm (down 21% YoY) and PNG sales were at 72 mmscm (up 2% YoY) in the second quarter.
Separately, Adani Gas announced signing a Definitive Agreement for acquisition of 3 Geographical Areas namely Ludhiana, Jalandhar and Kutch (East). "All 3 GAs have high volumes potential in terms of demand of over 6.5 MMSCMD over a period 10 Years. These GA's are under Phase 1 of Bharat Mala Pariyojana by NHAI which will further boost the development and volume growth, the company said.
Ajanta Pharma was down 0.08% to Rs 1608. On a consolidated basis, the company's net profit increased 46.29% to Rs 170.22 crore on a 11.38% rise in revenue from operations to Rs 715.91 crore in Q2 September 2020 over Q2 September 2019.
The drug company's India sales were at Rs 202 crore, down 1%. Total exports in Q2 September 2020 were at Rs 499 crore, a growth of 12% year-on-year. During Q2 September 2020, R&D expenses declined 27.5% to Rs 29 crore (4% of revenue) from Rs 40 crore in Q2 September 2019.
Ratnamani Metals & Tubes gained 0.96% to Rs 1260.85 after consolidated net profit tanked 25.8% to Rs 56.72 crore on 5.5% decrease in net sales to Rs 576.89 crore in Q2 September 2020 over Q2 September 2019.
Prince Pipes gained 2.67% to Rs 240 after the company's net profit rose 39.4% to Rs 46.57 crore in Q2 September 2020 from Rs 33.41 crore in Q2 September 2019. Revenue from operations stood at Rs 458.67 crore in Q2 September 2020, nearly 7% rise from Rs 429.23 crore in Q2 September 2019.
Ramco Systems dropped 4.58% to Rs 428.70. The company's consolidated net profit surged 19.39% to Rs 16.93 crore on 10.03% increase in net sales to Rs 159.82 crore in Q2 September 2020 over Q1 June 2020. Profit before tax (PBT) rose 3.24% to Rs 28.98 crore in Q2 September 2020 as against Rs 28.08 crore in Q1 June 2020. Current tax expense for the quarter gained 1.83% to Rs 5 crore as against Rs 4.91 crore paid in Q1 June 2020.
The quarterly order bookings stood at $26.53 million, registering a 24% Q-o-Q (quarter-on-quarter) growth. Five 'Million-Dollar-Plus' deals have been signed during the quarter. The overall borrowings reduced to Rs 49.75 crore in Q2 FY21 from Rs 75 crore in Q1 FY21.
Global Markets:
Shares in Europe and Asia advanced on Wednesday as investors around the world keep watch on the outcome of the U.S. election.
A private survey showed China's service sector activity growing in October, with the Caixin/Markit services Purchasing Managers' index coming in at 56.8.
Hong Kong-listed shares of Alibaba tanked on Wednesday after the anticipated initial public offering of affiliate Ant Group was suspended amid regulatory concerns.
In US, stocks jumped on Tuesday as investors hoped a clear winner would emerge from the U.S. presidential election and a delayed, or contested, result would be avoided.
Heading into Tuesday's vote, former Vice President Joe Biden held a lead in national polling over President Donald Trump. In swing states, where the election will be decided, polling averages are tighter than the national polls.
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