Key equity barometers ended with minor gains on Friday, mirroring gains in other Asian stock markets following reports that the United States and China are getting close to an interim trade pact.
The Nifty 50 index hit an intraday high of 11,973.65, supported by firmness in banks and pharmaceutical shares. Profit selling in the last one hour of the trade dragged the index below 11,900 level.
The barometer index, the BSE Sensex, rose 70.21 points or 0.17% to close at a 40,356.69, as per the provisional closing data. The Nifty 50 index rose 23.20 points or 0.20% to 11,895.30, as per the provisional closing data.
In the broader market, the S&P BSE Mid-Cap index rose 0.63% while the S&P BSE Small-Cap index ended 0.13% lower.
The market breadth was negative. On the BSE, 1137 shares rose and 1467 shares fell. A total of 166 shares were unchanged.
Buzzing Index:
The Nifty Bank index rose 0.83% to 31,005.35. Public sector banks rallied after the Supreme Court (SC) on Friday said the National Company Law Appellate Tribunal (NCLAT) should not interfere with the decisions of the committee of creditors (CoC) in the Essar Steel insolvency case. Accordingly, SC gave more weightage to the financial creditors.
The SC decision overruled NCLAT's judgment dated 5 July 2019 that operational creditors should be treated on a par with financial creditors for distribution of funds from ArcelorMittal's bid in the Essar Steel insolvency case. The verdict paves the way for Arcelor's takeover of the bankrupt company.
Corporation Bank (up 17.83%), Central Bank of India (up 9.07%), Bank of India (up 4.91%), State Bank of India (up 4.88%), Syndicate Bank (up 3.69%), IDBI Bank (up 3.3%), Canara Bank (up 2.7%), Punjab National Bank (up 2.57%), United Bank of India (up 2.33%), Bank of Maharashtra (up 2.14%), Indian Bank (up 2.1%), Andhra Bank (up 1.46%), Union Bank of India (up 1.43%), Bank of Baroda (up 1.23%), UCO Bank (up 1.14%) and Allahabad Bank (up 0.59%) advanced.
Stocks in Spotlight:
Prime Focus was locked in a lower circuit of 20% at Rs 67.35 after company's subsidiary in United Kingdom, DNEG Plc, decided to postpone its initial public offering due to on-going market uncertainty. Earlier, DNEG announced it will go public on 15 October 2019.
Shares of GIC Housing Finance fell 2.16% to Rs 149.50. GIC Housing Finance had received show cause notice from National Housing Bank (NHB) in connection with the inspection carried out for Financial Year 2017-18. Based on inspection and reply submitted by Company, NHB has directed the company to pay a penalty of Rs.15,000 (plus GST) which has been paid by the company.
ONGC slipped 0.26% to Rs 135.90. The company reported 36.21% fall in consolidated net profit to Rs 5,275.51 crore on 11.19% fall in total income to Rs 103,237.18 crore in Q2 September 2019 over in Q2 September 2018.
Vedanta declined 0.90% to Rs 142.65. As per media reports, the company has lowered the capex guidance by $200 million to $1.2 billion for the financial year ending March 2020 with an optionality to spill into the next fiscal.
Steel Authority of India fell 2.01% to Rs 36.55. The steel maker reported a net loss of Rs 248.08 crore in Q2 September 2019 as against a net profit of Rs 609.76 crore in Q2 September 2018. Total income slumped 15.56% to Rs 14128.96 crore in Q2 September 2019 over Q2 September 2018.
MOIL declined 4.68% to Rs 140.45. The manganese-ore mining company reported 15.72% fall in consolidated net profit to Rs 8,859.21 crore after revenue from operations fell 29.25% to Rs 25,311.37 crore in Q2 September 2019 over Q2 September 2018.
The reduction in the company's turnover and profit during the current reporting period is mainly due to changes in product mix containing higher proportion of medium and low grade ore available for sale as compared with corresponding quarter and fall in prices of manganese ore in international market, resulting in price correction by MOIL
Divi's Laboratories jumped 5.30% to Rs 1745.65 after the USFDA successfully completed cGMP inspection of company's Unit-I facility at Lingojigudem, Telangana. The company received zero 483 observations from USFDA. The inspection was carried out from 11 November 2019 to 15 November 2019.
Balkrishna Industries rose 5.18% to Rs 865.50. The company reported 31% jump in profit after tax to Rs 291 crore in Q2 September 2019 from Rs 222 crore in Q2 September 2018. Total income of the company, however, fell 19% to Rs 1107 crore in Q2 September 2019 from Rs 1370 crore in Q2 September 2018. The company has written-off tax expenses to the tune of Rs 35 crore in Q2 September 2019 as against a tax expense of Rs 116 crore in Q2 September 2018.
Glenmark Pharmaceuticals advanced 6.98% to Rs 302. Consolidated net profit was at Rs 255.54 crore for the quarter ended September 30, 2019 as compared to Rs. 414 crore in the previous corresponding quarter. Consolidated revenues rose 9.05% to Rs 2815.04 crore in Q2 September 2019 from Rs 2581.33 crore in Q2 September 2018.
The company reported that the net profit is not comparable to the previous corresponding quarter on account of an exceptional income of Rs 167.18 crore recorded in the second quarter of the previous financial year.
Bharti Airtel jumped 8.15% to Rs 392.20. Bharti Airtel reported consolidated net loss of Rs 23,044.90 crore in Q2 September 2019 as compared with net profit of Rs 118.80 crore in Q2 September 2018. Total income rose 5.5% to Rs 21514.50 crore in Q2 September 2019 over in Q2 September 2018.
On the AGR issue, the company has provided for an additional amount aggregating Rs 28,450 crore as a charge for the quarter (comprising of Principal of Rs. 6,164 crore, interest of Rs. 12,219 crore, penalty of Rs. 3,760 crore, and interest on penalty of Rs. 6,307 crore) with respect to the license fee as estimated based on the Court Judgement and spectrum usage charges (SUC) as estimated based on the definition of AGR. These provisions have been made without prejudice to the company's right to contest DoT's demands on facts as well as on rights available in law.
Vodafone Idea jumped 21.36% to Rs 3.58. The company reported consolidated net loss of Rs 50,921.90 crore in Q2 September 2019 as compared with net loss of Rs 4,973.80 crore in Q2 September 2018. Total income rose 42.36% to Rs 11,275.90 crore in Q2 September 2019 over in Q2 September 2018.
Foreign Markets:
Shares in Europe and Asia edged higher on Friday, as investors digested recent developments on US-China trade.
White House economic adviser Larry Kudlow said negotiations over the first phase of a trade agreement with China were coming down to the final stages, with the two sides in close contact.
The US stock market finished session mixed on Thursday, 14 November 2019, as risk sentiments subdued amid mixed global economic data.
In economic news, US initial jobless claims climbed to 225,000, an increase of 14,000 from the previous week's unrevised level of 211,000, a report released by the Labor Department on Thursday showed.
The Labor Department released a report on Thursday showing US producer prices rebounded by 0.4% in October after falling by 0.3% in September. The bigger than expected increase in producer prices came amid a substantial rebound in energy prices, which surged up by 2.8% in October after tumbling by 2.5% in each of the two previous months. Excluding food and energy prices, core producer prices still rose by 0.3% in October as against an expectation of 0.2% and following a 0.3% drop in September.
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