The domestic equity benchmarks closed with strong gains on Monday. The Nifty closed below the 17,950 mark. Shares across sectors edged higher, with metals, IT, banks, financials and auto stocks gaining the most.
As per provisional closing data, the barometer index, the S&P BSE Sensex, jumped 831.53 points or 1.40% to 60,138.46. The Nifty 50 index advanced 258 points or 1.46% at 17,929.65.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.09% to 17.24.
In the broader market, the S&P BSE Mid-Cap index rose 1.75% while the S&P BSE Small-Cap index gained 1.11%.
Buyers outpaced sellers. On the BSE, 2171 shares rose and 1137 shares fell. A total of 193 shares were unchanged.
The key equity indices witnessed bargain buying after declining by over 3% in the past three sessions. The recent selling was triggered by relentless selling by FIIs, rising inflation and slowdown in global growth momentum.
Economy:
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 55.9 in October 2021, rising from 53.7 in September 2021. The latest figure pointed to the strongest improvement in overall operating conditions since February 2021. The figure was in expansion territory for the fourth month in a row.
GST revenue collection:
The gross GST revenue collected in the month of October is Rs 1,30,127 crore. Out of this amount, the CGST component is 23,861 crore, SGST is 30,421 crore, IGST is 67,361 crore and Cess is Rs 8,484 crore.
The revenues for the month of October this year are 24% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 39% higher and the revenues from the domestic transaction are 19% higher than the revenues from these sources during the same month last year.
The GST revenues for October have been the second-highest ever since the introduction of GST, second only to that in April this year. Finance Ministry said this is very much in line with the trend in economic recovery.
October Auto sales:
Escorts fell 1.52% to Rs 1,545.60. The company's total tractor sales declined by 1.1% YoY to 13,514 units in October 2021 from 13,664 units sold in October 2020. On a sequential basis, Escorts recorded a sales growth of 53.3% in October 2021 from 8,816 units sold in September 2021.
Bajaj Auto added 0.51% to Rs 3,726.10. The company's total auto sales in October 2021 stood at 4,39,615 units, down by 14% from 5,12,038 units sold in October 2020. On a sequential basis, the total auto sales are higher by 9.3% as compared with 402,021 units sold in September 2021.
Mahindra & Mahindra (M&M) fell 1.57% to Rs 870.35. The auto major announced that its overall auto sales (passenger vehicles + commercial vehicles + exports) for the month of October 2021 stood at 41,908 vehicles. M&M had registered overall auto sales of 28,112 vehicles in September 2021. The figure stood at 44,359 units in October 2020.
Further, M&M's Farm Equipment Sector (FES) reported domestic sales of 45,420 tractors in October 2021, almost flat compared with 45,588 units in October 2020. Domestic tractor sales rose 16.30% last month over September 2021.
TVS Motor rose 2.24% to Rs 677.40. The company's sales declined 10% to 355,033 units sold in October 2021 as against sales of 394,724 units sold in the month of October 2020.
Maruti Suzuki India rose 1.78% to Rs 7,615.55. The car major said its total sales surged 60.15% to 138,335 units in October 2021 from 86,380 units sold in September 2021. The company's total sales declined 24.18% year-on-year last month.
Separately, Maruti Suzuki India informed on 30 October 2021 that owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of November 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG) in Gujarat. Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 85% of normal production, it added.
Eicher Motors advanced 3.03% to Rs 2,560. The company said that its subsidiary VE Commercial Vehicles (VECV) sold 5805 units of commercial vehicles in October 2021, registering a growth of 38.2% on a year-on-year basis.
VECV, the unlisted subsidiary of Eicher Motors, had sold 4200 units of commercial vehicles in October 2020. On a sequential basis, the commercial vehicles sales are lower by 4.3% as compared with 6070 units sold in September 2021.
Earnings Impact:
Housing Development Finance Corporation (HDFC) rose 1.52% to Rs 2,887.95. The corporation's standalone net profit jumped 31.91% to Rs 3,780.50 crore on a 4.20% rise in net sales to Rs 12,226.39 crore in Q2 September 2021 over Q2 September 2020.
Dr. Reddy's Laboratories advanced 2.74% to Rs 4798.05. The drug maker reported 30% rise in consolidated profit after tax to Rs 992 crore on a 18% rise in revenue to Rs 5,763 crore in Q2 FY22 over Q2 FY21.
UPL declined 2.67% to Rs 721. The agrochemicals manufacturer reported 36% rise in consolidated net profit to Rs 633 crore on a 18% rise in revenue to Rs 10,567 crore in Q2 FY22 over Q2 FY21.
Shree Cement rose 1.63% to Rs 29125.55. The cement maker reported consolidated net profit of Rs 563.94 crore in Q2 FY22 as compared with net profit of Rs 527.87 crore in Q2 FY21. Total income rose to Rs 3,526.95 crore from Rs 3,364.84 crore.
Bharat Petroleum Corporation (BPCL) gained 1.02% to Rs 422. The company's standalone net profit jumped 19.9% to Rs 2,694.10 crore on a 62.6% surge in net sales to Rs 81,536.67 crore in Q2 September 2021 over Q2 September 2020.
Indian Railway Catering and Tourism Corporation advanced 1.09% to Rs 854.90. The company posted a 386% jump in net profit to Rs 158.57 crore on a 357% increase in revenue from operations to Rs 40,493.72 crore in Q2 FY22 over Q2 FY21.
Devyani International added 1.87% to Rs 125. The company reported a consolidated net profit of Rs 46.6 crore in Q2 FY22 as against a net loss of Rs 65.5 crore in Q2 FY21. Revenue from operations in the second quarter increased by 124% YoY to Rs 516.1 crore. Reported same-store sales growth (SSSG) of KFC and Pizza Hut was 72% and 76%, respectively.
Venky's (India) shed 0.68% to Rs 2704.80. The company's net profit declined by 15.6% to Rs 30.68 crore despite a 40.7% rise in revenue from operations to Rs 987.76 crore in Q2 FY22 over Q2 FY21.
Lux Industries jumped 7.77% to Rs 3835. The company reported 50% rise in consolidated net profit to Rs 100.04 crore on a 25% increase in income from operations to Rs 630.86 crore in Q2 FY22 over Q2 FY21.
Steel Authority of India (SAIL) soared 8.91% to Rs 125.25. The company's consolidated net profit rose 11.33% to Rs 4338.75 crore on 29.96% rise in net sales to Rs 26828.01 crore in Q2 September 2021 over Q1 June 2021. SAIL's net profit surged 893.94% and net sales rose 58.51% in Q2 September 2021 over Q2 September 2020. During the quarter, the company's crude steel production stood at 4.468 million tonnes and saleable steel sales stood at 4.280 million tonnes.
Vedanta added 0.46% to Rs 305.10. The company reported consolidated attributable net profit of Rs 4,615 crore in Q2 September 2021, steeply higher than Rs 824 crore in Q2 September 2020. On a consolidated basis, net sales rose 44% to Rs 30,048 crore in Q2 September 2021 over Q2 September 2020.
GlaxoSmithKline Pharmaceuticals surged 6.78% to Rs 1605.00. The company reported a 76% rise in standalone net profit to Rs 202.65 crore on a 12.8% increase in net sales to Rs 991.53 crore in Q2 FY22 over Q2 FY21.
Bandhan Bank fell 1.30% to Rs 287.70. The bank reported net loss of Rs 3008.60 crore in Q2 September 2021 as against net profit of Rs 920.01 crore in Q2 September 2020. Total income rose 3.03% to Rs 3672.51 crore in Q2 September 2021 over Q2 September 2020.
Global Markets:
European shares edged higher while Asian stocks ended mixed on Monday, as investors reacted to economic data that showed a mixed picture of Chinese manufacturing activity in October.
China's official manufacturing Purchasing Managers' Index for October came in at 49.2 over the weekend, below the 50 level separating expansion from contraction. However, a private survey released Monday showed Chinese manufacturing activity growth in October expanding with the Caixin/Markit manufacturing PMI coming in at 50.6.
Investors will be monitoring the US Federal Reserve's two-day meeting Tuesday and Wednesday. The central bank is widely expected to announce that it will begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year.
Meanwhile, leaders of the world's 20 biggest economies (G-20) endorsed on Saturday a global minimum tax aimed at stopping big business from hiding profits in tax havens, and also agreed to get more COVID-19 vaccines to poorer nations. G-20 leaders broadly backed calls to extend debt relief for impoverished countries and pledged to vaccinate 70% of the world's population against COVID-19 by mid-2022.
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