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Indices extend gains for 7th day

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Capital Market
Last Updated : Nov 04 2019 | 5:04 PM IST

Key equity indices extended their winning streak for seventh trading session and ended with decent gains on Monday, supported by positive global cues. The barometer index, the BSE Sensex rose 136.93 points or 0.34% to close at a record high of 40,301.96, as per the provisional closing data. The Nifty 50 index rose 54.55 points or 0.46% to 11,945.15, as per the provisional closing data.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.01% while the S&P BSE Small-Cap index rose 0.22%.

The market breadth was positive. On the BSE, 1428 shares rose and 1153 shares fell. A total of 174 shares were unchanged. In Nifty 50 index, 27 stocks advanced and 23 stocks declined.

The Nifty registered a gap up opening and surged in early trade. It hit an intraday high of 11,989 level in mid-morning trade. The 50-unit index pared gains in early afternoon trade. The Nifty managed to hold 11,900 throughout the session. The index firmed up once again in mid-afternoon trade and managed to close near 11,950 level.

Buzzing index

Metal stocks shined in today's session. The Nifty Metal index was up 3.46% at 2,650.30 while the S&P BSE Metal index surged 3.4% higher at 9,862.48.

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Jindal Steel & Power (up 11.23%), JSW Steel (up 12.4%), Steel Authority of India (up 3.72%), Vedanta (up 3.63%), Tata Steel (up 2.8%), Tata Steel (up 2.44%), Hindalco Industries (up 2.17%), Hindustan Zinc (up 2.1%) and National Aluminium Company (up 2.07%) surged higher.

Q2 earnings:

Housing Development Finance Corporation (HDFC) rose 2.33% to Rs 2178.10. HDFC reported 80.38% jump in consolidated net profit to Rs 10,388.61 crore on a 43.14% increase in total income to Rs 32,850.89 crore in Q2 September 2019 over Q2 September 2018. On a standalone basis, the housing finance company reported 60.58% increase in net profit to Rs 3,961.53 crore on a 19.87% increase in total income to Rs 13,494.12 crore in Q2 September 2019 over Q2 September 2018.

Yes Bank fell 0.6%. The bank reported net loss of Rs 600.08 crore in Q2 September 2019 as compared to net profit of Rs 964.70 crore in Q2 September 2018. Total income fell 4.28% to Rs 8332.21 crore in Q2 September 2019 over Q2 September 2018. Yes Bank's overall profitability was hurt by a deferred tax asset (DTA) impact that resulted in a one-time additional charge of Rs 708.61 crore arising on account of change in corporate tax rate regime. Excluding this onetime impact, adjusted profit after tax (PAT) stood at Rs 109 crore in Q2 September 2019. The bank's profit before tax stood 122.19 crore in Q2 September 2019, down by 91.43% from 1426.46 crore in Q2 September 2018. The total income of the bank fell 4.28% to Rs 8332.21 crore in Q2 September 2019 over Q2 September 2018.

Advanced Enzyme Technologies gained 0.77%. On consolidated basis, company's net profit rose 23.1% to Rs 31.84 crore on an 8% increase in net sales to Rs 111.44 crore in Q2 September 2019 as against Q2 September 2018. The company's EBITDA surged 12% to Rs 47.3 crore on YoY basis.

Varun Beverages was up 2.33%. On consolidated basis, the company's net profit jumped 83.71% to Rs 81.1 crore on a 49.2% rise in net sales to Rs 1739.7 crore in Q3 September 2019 over Q3 September 2018. The company's EBITDA also jumped 54.2% to Rs 325.7 crore on YoY basis.

Relaxo Footwear rose 3.73% at Rs 563.45 after the company announced its Q2 earnings on Saturday. On standalone basis, the company's net profit jumped 78.8% to 70.54 crore on a 14.5% increase in net sales to Rs 621.77 crore in Q2 September 2019 as compared to Q2 September 2018. The company's PAT margin improved to 11.3% in Q2 2019 from 7.3% in Q2 2018. The revenue growth was driven mainly by premiumization, product mix and price increase in selected categories. EBITDA jumped 42% to Rs 105 crore in Q2 September 2019 as against 74 crore in Q2 September 2018. The EBITDA margin improved to 16.8% in Q2 2019 from 13.5% in Q2 2018.

Auto ancillary firm, WABCO India declined 1.58% after the company announced a dismal Q2 September 2019 result during market hours today. Net profit dropped 64.5% to Rs 3385.71 crore on a 40.85% drop in revenue from operations in Q2 September 2019 as compared to Q2 September 2018.

J K Lakshmi Cement surged 5.48% to Rs 305.85. The cement company reported a consolidated net profit of Rs 48.67 crore in Q2 September 2019 compared with net loss of Rs 4.80 crore in Q2 September 2018. Net sales rose 5.6% to Rs 1012.36 crore in the quarter ended on 30 September 2019 as compared to the corresponding quarter in last fiscal.

JSW Energy rose 4.06%. Consolidated net profit rose 11.7% to Rs 352.98 crore on 12.8% decline in net sales to Rs 2,118.55 crore in Q2 September 2019 over Q2 September 2018. Consolidated EBITDA climbed 5% to Rs 1,048 crore in Q2 September 2019 compared with Rs 998 crore in Q2 September 2018.

V-Mart Retail lost 5.32% after the company reported net loss of Rs 18.04 crore in Q2 September 2019 as compared to net loss of Rs 4.02 crore in Q2 September 2018. Net sales rose 19.82% to Rs 314.16 crore in Q2 September 2019 over Q2 September 2018.

Stocks in spotlight:

Commercial vehicles manufacturer, Ashok Leyland was down 1.12%. The company said that it will observe non-working days in November 2019 in order to align production with market demand.

Eicher Motors declined 1.02% to Rs 21,746.35. Total Royal Enfield sales rose 2% to 71,964 units in October 2019 over October 2018. Royal Enfield exports surged 987% to 4,426 units in October 2019 over October 2018.

Tata Motors fell 1.46% to Rs 177.95. The auto maker's total sales in the domestic & international market fell by 33.58% to 41,354 units in October 2019 as compared to 62,264 units during October 2018.

Cadila Healthcare declined 4.29% to Rs 244.35 after the company said that a warning letter has been issued by USFDA relating to its Moraiya formulation facility in Ahmedabad, Gujarat. The pharmaceutical company assured that this warning letter would not affect the existing business of the company in the US and the existing product supplies from the Moraiya facility will continue.

MOIL rose 0.94% to Rs 140.10. The manganese-ore mining company has slashed prices of all grades of manganese ore having manganese 37% and above have by about 20% while the prices of the ores having manganese less than 37% and below have been decreased by about 25% on the prevailing prices since 01 October 2019.

Coal India advanced 3.75% to Rs 214.70. The coal mining and refinery company registered a de-growth of 20.9% in its total coal production to 39.35 million tonnes while the total coal offtake decreased by 18.9% to 40.50 million tonnes in October 2019 over October 2018.

KEC International was up 0.48% at Rs 272.9 after the company announced that it has secured new orders worth Rs 1806 crore from railways, transmission & distribution segment, civil business and cables segment.

Foreign markets:

Overseas, European markets were trading higher while most Asian markets closed on a positive note as growing optimism over U.S.-China trade talks and upbeat U.S. job data boosted global investors' appetite for riskier assets.

U.S. stocks gained on Friday as the S&P 500 set a closing record for the third time in five days after an upbeat U.S. jobs report and data on Chinese manufacturing eased concerns about slowing global growth.

U.S. nonfarm payrolls rose by 128,000 in October, a Labor Department report showed, overshadowing data showing a contraction in the manufacturing sector for the third straight month.

The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted 16-month-long trade war, and U.S. officials reportedly said a deal could be signed this month.

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First Published: Nov 04 2019 | 3:42 PM IST

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