As per the provisional closing data, the barometer index, the S&P BSE Sensex, dropped 236.48 points or 0.54% at 43,357.43. The Nifty 50 index declined 58.35 points or 0.46% at 12,690.80.
Profit booking emerged after the Sensex jumped 10.05% and the Nifty climbed 9.51% in the past eight consecutive sessions. The Sensex hit a record high of 43,708.47 while the Nifty hit a record high of 12,769.75 yesterday.
The broader market ended higher. The S&P BSE Mid-Cap index rose 0.5% while the S&P BSE Small-Cap index gained 1.2%.
Buyers outnumbered sellers. On the BSE, 1,557 shares rose and 1,139 shares fell. A total of 190 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 6,207.19 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 3,463.86 crore in the Indian equity market on 11 November 2020, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 5,21,29,134 with 12,84,465 deaths. India reported 4,89,294 active cases of COVID-19 infection and 1,28,121 deaths while 80,66,501 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Finance Minister's Press Conference:
Addressing the press conference in New Delhi today, Finance Minister Nirmala Sitharaman announced Atmanirbhar Bharat Rozgar Yojana, which will incentivise creation of new jobs. New employees hired by EPFO-registered organisations will get benefits during the COVID-19 pandemic. The scheme is effective from 1 October 2020.
Meanwhile, the Emergency Credit Line Guarantee Scheme (ECLGS) is extended till 31 March 2021. Entities with outstanding credit of above Rs 50 crore and up to Rs 500 crore will be covered.
The government has also launched credit guarantee support for 26 stressed sectors. It will allocate additional Rs 18,000 crore over budget estimate towards PM Awaaz Yojana Urban.
To support construction & infrastructure sector, performance security on contracts will be reduced to 3%, instead of 5-10%. Earnest money deposit (EMD) will not be required for tenders and will be replaced by bid security declaration. This relaxation will be valid till 31 December 2021.
The government will make Rs 6,000 crore equity investment in debt platform of National Investment and Infrastructure Fund, which will help NIIF raise Rs 1.1 lakh crore by 2025 for financing infrastructure projects.
FM also announced tax relief for developers and home buyers for houses up to Rs 2 crore till 30 June 2021. Differential between circle rate and agreement value in real estate income tax is being increased from 10% to 20%.
FM said Rs 65,000 crore fertilizer subsidy will be provided to farmers. Fertilizer consumption is going up significantly, increased supply of fertilizers will ensure that forthcoming crop seasons will not be affected for want of adequate fertilizers.
Additional outlay of Rs 10,000 crore is being provided for 'PM Garib Kalyan Rozgar Yojana'. Funds can be used for MGNREGA or for Gram Sadak Yojana, will help accelerate rural economy.
Sitharaman further said Rs 3,000 crore will be released to EXIM Bank for promotion of 'Project Exports' through lines of credits.
FM said that the economy is emerging strong as key parameters of the economy are in the positive trajectory. She said India strongly dealt with the Covid-19 pandemic and active cases and mortality rate are showing a declining trend.
FM said rise in PMI Index, energy consumption, GST collection, bank credit, FPI investment show that India's economy is doing better. She said market capitalization and forex reserve are on all time high which is a positive indicator.
Yesterday, the Union Cabinet gave its approval to introduce the Production-Linked Incentive Scheme (PLI) in the 10 key sectors. This scheme will make Indian manufacturers competitive globally and attract investment in the areas of core competency with cutting-edge technology. It will also ensure efficiencies, enhance exports and make India a pivotal part of the global supply chain.
Buzzing Segment:
Shares of FMCG companies were in demand after the FM Sitharaman made series of announcement to support rural economy. The Nifty FMCG index was up 1.03% at 31,163.80.
Hindustan Unilever (up 3.13%), Emami (up 2.43%), Jubilant Foodworks (up 1.64%), Colgate Palmolive (up 1.41%), ITC (up 1.4%), Dabur (up 1.11%), Tata Consumer (up 0.77%) and Britannia Industries (up 0.49%) were top gainers in FMCG segment.
Result Today:
Eicher Motors (up 0.37%), Grasim Industries (up 2.89%), IRCTC (up 0.84%), Fortis Healthcare (up 3.84%), Bharat Dynamics (up 1.58%), HEG (up 0.53%), Bombay Burmah Trading Corporation (up 2.75%), Cochin Shipyard (up 0.61%) will announce their quarterly results today.
Mazagon Dock Shipbuilders (up 0.09%) will announce its first quarterly result after listing on bourses on 12 October 2020.
Earnings Impact:
Shree Cement advanced 2.45%. The cement manufacturer's consolidated net profit jumped 68.5% to Rs 527.87 crore on 8.2% rise in net sales to Rs 3,249.93 crore in Q2 September 2020 over Q2 September 2019. Profit before tax soared 79.6% year on year to Rs 729.51 crore in Q2 September 2020 from Rs 406.10 crore in Q2 September 2019. Total tax expense were steeply higher at Rs 201.64 crore in Q2 September 2020 from Rs 92.80 crore in Q2 September 2019. The cement maker's profit before tax soared 79.6% year on year to Rs 729.51 crore in Q2 September 2020 from Rs 406.1 crore in Q2 September 2019. Total tax expense were steeply higher at Rs 201.64 crore in Q2 September 2020 from Rs 92.80 crore in Q2 September 2019. The company believes that pandemic is unlikely to impact on the recoverability of the carrying value of its assets as at 30 September 2020. As the situation of pandemic is still continuing, the extent to which the same will impact company's future financial results is currently uncertain and will depend on further developments.
Coal India skid 2.94% after the state-run coal major's consolidated net profit dropped 16.21% to Rs 2,951.60 crore on 2.62% increase in revenue from operations to Rs 19,484.15 crore in Q2 September 2020 over Q2 September 2019. On a consolidated basis, profit before tax (PBT) declined 5.05% to Rs 4,060.79 crore in Q2 September 2020 as against Rs 4,277.15 crore in Q2 September 2019. Current tax expense for the quarter soared to Rs 1,168.30 crore as against Rs 75.65 crore paid in Q1 September 2019. Consolidated coal production (raw coal) jumped 10.56% to 114.98 million tonnes (MT) in Q2 FY21 as against 103.99 million tonnes (MT) in Q2 FY20. Offtake (raw coal) soared 9.40% to 133.96 MT in Q2 FY21 as against 122.44 MT in Q2 FY20.
Galaxy Surfactants spurted 8% after the company posted a 21.9% rise in consolidated net profit to Rs 81.74 crore on a 10.8% rise in net sales to Rs 718.68 crore in Q2 September 2020 over Q2 September 2019. The company said increase in revenue was on account of better sales volumes in both performance surfactants and specialty care business and better sales mix. The company's total volume increased by 10.4% year on year to 63,026 MT in Q2 September 2020.
Ashoka Buildcon soared 6.4% after consolidated net profit soared 514.50% to Rs 70.42 crore on 14.6% increase in net sales to Rs 1,189.31 crore in Q2 September 2020 over Q2 September 2019. Consolidated profit before tax (PBT) surged 104.3% to Rs 114.67 crore in Q2 September 2020 as against Rs 56.14 crore in Q2 September 2019. Current tax expense for the quarter jumped 35.8% to Rs 46.20 crore as against Rs 34.03 crore in Q2 September 2019.
Aurobindo Pharma rallied 3.39% after the drug maker's consolidated net profit rose 26% to Rs 805.65 crore on 15.77% rise in revenue from operations to Rs 6,483.44 crore in Q2 September 2020 over Q2 September 2019. Consolidated profit before tax grew by 38.09% to Rs 1192.98 crore in Q2 September 2020 as against Rs 863.90 crore in Q2 September 2019. Total tax expense spiked 72.63% year on year to Rs 387.33 crore in Q2 September 2020 over Q2 September 2019. EBITDA before Forex and Other Income grew by 22.7% to Rs 1,432.8 crore in Q2 September 2020 from Rs 1,167.5 crore in Q2 September 2019. EBITDA margin improved to 22.1% in Q2 September 2020 from 20.8% in Q2 September 2019.
Global Markets:
The Dow Jones US futures were down 144 points, indicating a weak start on Wall Street today.
European stocks were trading lower while most Asian stocks declined on Thursday as investor booked profits after recent rally. Technology shares in the region rose in Thursday trade after the sector bounced overnight stateside.
In US, the S&P 500 and Nasdaq Composite rose on Wednesday as tech shares recovered. The blue-chip Dow ended the session slightly in the red. The Dow Jones Industrial Average fell 23.29 points, or 0.08%, to 29,397.63, the S&P 500 gained 27.13 points, or 0.77%, to 3,572.66 and the Nasdaq Composite added 232.58 points, or 2.01%, to 11,786.43.
Despite positive news on the vaccine front, the pandemic situation remains severe with the U.S. recently setting a new record of average daily cases while the United Kingdom reported its highest daily deaths since May.
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