Indices trade with small gains; breadth negative

Benchmark indices bounced off the day's low and traded with small gains in morning trade. The Nifty crossed the 11,800 mark. At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 101.17 points or 0.25% at 40,246.32. The Nifty 50 index gained 35.9 points or 0.31% at 11,803.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.71% while the S&P BSE Small-Cap index was up 0.14%.

The market breadth was negative. On the BSE, 906 shares rose and 1140 shares fell. A total of 107 shares were unchanged.

COVID-19 Update:

India reported 625,857 active cases of COVID-19 infection and 119,502 deaths while 7,201,070 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. Total COVID-19 confirmed cases worldwide stood at 43,483,973 with 1,158,883 deaths, according to data from Johns Hopkins University.

 

MSCI Update:

Morgan Stanley Capital Investment (MSCI) announced that it will implement changes in Foreign Ownership Limits (FOL) in the MSCI Global Indexes containing Indian securities coinciding with the November 2020 Semi Annual Index Review. The global index major said it will implement the changes at the close of 30 November, effective 1 December 2020. The change is expected to attract billions of dollars in active and passive flows for domestic stocks where the FOL will increase.

Buzzing Index:

The Nifty IT index declined 0.94% to 21,065.10, extending its losing streak to fourth consecutive trading session. The IT index has lost 1.45% in four days.

Mindtree (down 2.74%), Infosys (down 2.25%), Wipro (down 1.84%), HCL Tech (down 0.73%) and Larsen & Toubro Infotech (down 0.56%) were major losers.

Earnings Today:

Bharti Airtel (down 0.75%) and Tata Motors (down 0.94%) are two Nifty companies that will announce their quarterly results today.

Amara Raja Batteries (down 0.74%), Castrol India (up 1.23%), Ceat (down 0.41%), ICICI Prudential (up 0.99%), JM Financial (down 0.19%), Network 18 (down 1.84%), Nippon Life India Asset Mgmt (down 0.33%), Sanofi India (up 0.65%), SKF India (up 0.22%) and Suven Life Sciences (up 1.35%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

Finolex Industries jumped 5.53% to Rs 561.50 after the company reported 16.6% rise in consolidated profit after tax to Rs 119.72 crore on 1.6% rise in total income from operations to Rs 585.78 crore in Q2 September 2020 over Q2 September 2019. Consolidated EBITDA stood at Rs 144.77 crore for Q2 September 2020, up by 76.5% as against Rs 82 crore for Q2 September 2019. EBITDA margin improved to 24.7% in Q2 September 2020 from 14.2% in Q2 September 2019. Finolex Industries said that subsequent to a Covid-19 induced volume reduction in Q1, business witnessed recovery in Q2 with near normal operating conditions. Significant improvement in EBIT on year on year basis, attributed to better realisations and lower costs in both the operating segments and higher volume in the PVC resin segment.

Mahindra & Mahindra Financial Services fell 2.45%. The NBFC reported 34.4% jump in consolidated net profit to Rs 351.35 crore on 4.2% rise in total income to Rs 3070.50 crore in Q2 FY21 over Q2 FY20. Profit before tax (PBT) in Q2 September 2020 stood at Rs 487.57 crore, down by 3.8% from Rs 506.93 crore in Q2 September 2019. Current tax expense surged 243.5% to Rs 208.95 crore in Q2 FY21 from Rs 60.83 crore in Q2 FY20. Mahindra Finance's standalone Assets Under Management (AUM) stood at Rs 81,682 crores as on 30 September 2020, as against Rs 72,732 crore as on the corresponding reporting date last year, registering a growth of 12%.

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