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Market spurts amid broader rally

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Capital Market
Last Updated : Nov 05 2020 | 2:50 PM IST

Domestic equity benchmarks further extended gains and traded near the day's high in mid-afternoon trade. Investors continued to monitor the results of the US Presidential election as Joe Biden edged closer to victory.

At 14:25 IST, the barometer index, the S&P BSE Sensex, rallied 708.23 points or 1.74% at 41,324.37. The Nifty 50 index jumped 202.05 points or 1.70% at 12,110.55.

In the broader market, the S&P BSE Mid-Cap index rose 1.55% while the S&P BSE Small-Cap index gained 1.53%.

Buyers outnumbered sellers. On the BSE, 1692 shares rose and 865 shares fell. A total of 175 shares were unchanged.

US Election 2020:

According to the latest count, Democratic Party candidate and former vice president Joe Biden has won 264 electoral votes while President Donald Trump has won 214 electoral votes. A candidate needs 270 electoral votes to win the election.

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In the Senate, the Republican Party has so far won 48 seats while the Democratic Party has won 46 seats. Either party needs 51 seats for a majority in the Senate.

In the House, the Democratic Party has won 204 seats so far while the Republican Party has won 190 seats. Either party needs 218 seats for a majority in the House.

The US Dow Jones Futures were currently up 265.50 points and Nasdaq futures were up 244.25 points.

Even as US election results keep rolling in, the country saw a range of protests from both pro-Trump and anti-Trump groups, with nearly 60 people arrested in Manhattan, media reports said.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee appreciated to 74.36 compared with its previous closing 74.76.

The yield on 10-year benchmark federal paper fell to 5.867% compared with its closing of 5.886% in the previous trading session.

MCX Gold futures for 4 December 2020 settlement added 1.25% to Rs 51,455.

In the commodities market, Brent crude for January 2020 settlement slipped 31 cents to $40.92 a barrel. The contract had gained 3.8% or $1.52 to settle at $41.23 in the previous trading sessions.

Buzzing Index:

The Nifty Media index jumped 4.06% to 1,473.10. The index advanced 0.17% to end at 1,415.60 yesterday.

Sun TV Network (up 6.20%), Zee Entertainment (up 4.26%), T.V.Today Network (up 1.52%), Dish TV India (up 1.28%) and D.B.Corp (up 0.61%) advanced.

Shares of the multiplex operators advanced after Maharashtra government allowed the cinema halls, theatres, multiplexes to open with 50% of seating capacity from Thursday, 5 November 2020.

PVR gained 7.55% to Rs 1199 while Inox Leisure rose 3.95% at Rs 274.85.

The State Government in an order said multiplexes will be opened only in areas outside containment zone. The development comes after the Central Government issued order on 1 October 2020 permitting to open with upto 50% of their seating capacity, for which, standard operating procedure (SOP) will be issued by Ministry of Information & Broadcasting.

Earnings Impact:

Bajaj Electricals rose 4.6% to Rs 509 after the company posted a consolidated net profit of Rs 53.11 crore in Q2 September 2020 as against a net loss of Rs 36.54 crore in Q2 September 2019. Consolidated revenue from operations for Q2 September 2020 stood at Rs 1,217.71 crore, rising 11% from Rs 1095.65 crore in the year ago period.

The company's order book as on 1 October 2020 stands at Rs 1,474 crore, comprising of Rs 482 crore for Transmission Line Towers, Rs 602 crore for Power Distribution and Rs 390 crore for Illumination Projects.

Jubilant Life Sciences shed 0.96% to Rs 699.95. The company reported 10% decline in consolidated net profit to Rs 224 crore on 5% rise in total revenue from operations to Rs 2,375 crore in Q2 FY21 over Q2 FY20.

On the segmental front, pharmaceuticals revenue was at Rs 1,516 crore (up 4% YoY), life science ingredients revenue was at Rs 784 crore (up 4% YoY) and drug discovery & development solutions revenue was at Rs 75 crore (up 23% YoY) in the second quarter.

With respect to business outlook, the company said that it continues to see improvement in demand in most of its business segments be it Specialty Pharma, CMO, API or Specialty Intermediates. Given the strong demand recovery and new business sign-ups, the company believes that COVID-19 is not likely to have a material impact on our overall performance during FY21, provided the pandemic situation does not materially deteriorate going forward. Overall, it expects strong performance in our Pharma, LSI and DDDS business in the second half of FY21.

Caplin Point Laboratories rose 0.87% to Rs 494.60. The pharmaceutical company reported 9.7% increase in consolidated net profit to Rs 62.83 crore on 18% increase in revenue from operations to Rs 268.12 crore in Q2 FY21 over Q2 FY20.

EBITDA rose 14.3% to Rs 89.19 crore in Q2 September 2020 from Rs 78 crore in Q2 September 2019. EBITDA margin was at 33% as 30 September 2020 as against 33.3% as on 30 September 2019.

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First Published: Nov 05 2020 | 2:26 PM IST

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