Equity indices ended a volatile trading session with small gains on Friday. The Nifty managed to close above 12,700 mark after slipping below that level in intraday. FMCG shares declined while metal and pharma shares advanced.
The barometer index, the S&P BSE Sensex, rose 85.81 points or 0.2% at 43,443. The Nifty 50 index gained 29.15 points or 0.23% to 12,719.95.
The Nifty opened lower and hit the day's low of 12,607.70 in early trade. The index bounced into positive terrain in morning trade, but failed to hold 12,700 mark. After hovering in a narrow range for most part of the session, the index jumped in mid-afternoon session and hit the day's high of 12,735.95 in late trade.
ICICI Bank (up 1.91%), Axis Bank (up 1.81%) and Reliance Industries (up 0.82%) were major market movers while HDFC twins dragged. HDFC Bank (down 0.94%) and HDFC (down 1.04%) declined.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index was up 0.86% while the S&P BSE Small-Cap index gained 1.12%.
The market breadth was positive. On the BSE, 1599 shares rose and 1063 shares fell. A total of 195 shares were unchanged.
Muhurat Trading:
This year Muhurat trading will take place on Saturday, 14 November 2020. The trading hour is scheduled in the evening from 06:15 pm to 07:15 pm.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 5,26,78,681 with 12,92,228 deaths. India reported 4,84,547 active cases of COVID-19 infection and 1,28,668 deaths while 81,15,580 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
India's industrial production saw 0.2% growth in September, rising for first time in seven months. According to the Index of Industrial Production (IIP) data, manufacturing sector production registered a decline of 0.6% while output of mining and power segments grew at 1.4% and 4.9%, respectively. The IIP had contracted by 4.6% in September 2019.
India's Consumer Price Index (CPI) extended upward momentum and rose to 7.61% in the month of October. This is around six year high for the index. The CPI for the month of September was revised to 7.27% from 7.34%. The Consumer Food Price Index (CFPI) jumped to 11.07% in the month of October, up from 10.68% in September.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee edged higher to 74.625 compared with its previous closing 74.64.
The yield on 10-year benchmark federal paper fell to 5.879% compared with its closing of 5.903% in the previous trading session.
MCX Gold futures for 4 December 2020 settlement rose 0.08% to Rs 50,640.
In the commodities market, Brent crude for January 2021 settlement fell 26 cents to $43.27 a barrel. The contract fell 0.62% to settle at $43.53 in the previous trading sessions.
Global Markets:
The US Dow Jones futures were up 250 points, indicating a positive opening the US stocks today.
European markets were mixed while most Asian stocks declined on Friday as surging COVID-19 cases globally and more lockdowns clouded the region's recovery prospects.
The US stock market declined on Thursday as U.S. coronavirus infections surged and investors weighed the timeline for the mass rollout of an effective vaccine.
Investor focus on Friday was likely on the coronavirus situation in the U.S., as daily new cases of the virus continue to rise in the country, setting fresh records.
U.S. Federal Reserve Chairman Jerome Powell warned Thursday that the next few months could be challenging despite recent developments on the vaccine front. From our standpoint, it's just too soon to assess with any confidence the implications of the news for the path of the economy, especially in the near term, Powell said regarding the vaccine.
Buzzing Indian Segment:
The Nifty Metal index rose 1.67% to 2,681. The index has risen 14.40% so far in November 2020.
Vedanta (up 3.97%), Tata Steel (up 2.82%), NALCO (up 2.06%), JSW Steel (up 1.73%), NMDC (up 1.7%) and Hindalco Industries (up 1.06%) advanced.
Results Today:
ONGC (up 0.77%), Tata Steel (up 2.82%) and General Insurance Corporation of India (up 1.88%) will announce quarterly results today.
Earnings Impact:
Eicher Motors jumped 6.92%. The company's consolidated net profit dropped 40% to Rs 343.34 crore on 2.7% decrease in net sales to Rs 2,111.98 crore in Q2 September 2020 over Q2 September 2019. EBITDA fell 13% to Rs 471 crore in Q2 FY21 as compared to Rs 541 crore in the same quarter of the previous financial year.
Royal Enfield, an unlisted subsidiary and two-wheel manufacturer of the company, sold 1,49,120 motorcycles in the quarter, registering a decline of 9% Y-o-Y (year-on-year) from 1,63,390 motorcycles sold over the same period in FY 2019-20. For the quarter ended 30 September 2020, due to decline in volumes, the company's commercial vehicle unit, Volvo Eicher Commercial Vehicles (VECV)'s revenue from operations dropped by 13% to Rs 1,703 crore against Rs 1,955 crore in Q2 of last year. In spite of drop in revenues, the EBITDA margin improved to 6.9% for the quarter against 5.4% during corresponding quarter for the last year due to stringent cost reduction measures being undertaken
Grasim Industries rose 1.54% after the company's consolidated net profit rose 3.30% to Rs 1,521.40 crore in Q2 September 2020 over Q2 September 2019. Revenue from operations were almost flat at Rs 18,400.25 crore in Q2 September 2020 as against Rs 18,400.17 crore in Q2 September 2019. EBITDA for Q2 FY21 increased to Rs 3,660 crore, registering a growth of 40% Q-o-Q (quarter-on-quarter) and 15% Y-o-Y (year-on-year) respectively. The company said that the economy has been on the recovery path post relaxation of COVID-19 induced lockdown. It has been a resilient September 2020 quarter for Grasim Industries due to strong recovery in demand and the Government working relentlessly to support home grown businesses by injecting doses of fiscal and monetary stimulus on a timely basis.
Sun TV Network fell 4.07%. On a standalone basis, net profit fell 5.6% to Rs 345.91 crore on a 2.3% decrease in net sales to Rs 756.16 crore in Q2 September 2020 over Q2 September 2019. EBITDA for the quarter ended 30 September 2020 rose 7.10% to Rs 502.03 crore over Rs 468.74 crore for the previous quarter ended 30 September 2019. The subscription revenues for the quarter jumped 14% to Rs 427.04 crore as against Rs 375.65 crore for the corresponding quarter ended on 30 September 2019.
Mahanagar Gas fell 2.14% after the city gas distributor's net profit declined 46.7% to Rs 144.34 crore on 35.3% decline in net sales to Rs 506.73 crore in Q2 September 2020 over Q2 September 2019. Profit before tax stood at Rs 195.03 crore in Q2 September 2020, falling 23.8% year on year from Rs 255.84 crore in Q2 September 2019. Total tax expense stood at Rs 50.69 crore in Q2 September 2020 as against a tax rebate of Rs 14.78 crore in Q2 September 2019. Sequentially, CNG sales volumes jumped 168.64% to 117.40 million SCM (standard cubic metre) and total PNG sales volumes rose 27.33% to 73.33 million SCM in Q2 September 2020 over Q1 June 2020. Total volumes jumped 88.30% quarter-on-quarter to 190.74 million SCM in Q2 September 2020.
Mazagon Dock Shipbuilders jumped 4.21% after the company reported 6.9% rise in consolidated net profit to Rs 81.33 crore on a 15.6% increase in net sales to Rs 1099.56 crore in Q2 FY21 over Q2 FY20. Total expenditure during the quarter increased by 13.5% year-on-year (YoY) to Rs 1053.45 crore. The company recorded an exceptional expense of Rs 26.47 crore in Q2 September 2020. Profit before tax (after exceptional items) stood at Rs 133.35 crore in Q2 FY21, down by 13.9% from Rs 154.92 crore in Q2 FY20. Current tax outgo in the second quarter increased to Rs 32.10 crore from Rs 13.44 crore in the same period last year.
Stocks in Spotlight:
Shoppers Stop rose 2.58% after the company said its board approved the rights issue price at Rs 140 per share. The company's board at its meeting held on 13 November 2020 approved rights entitlement ratio at 17 rights equity shares for every 70 equity shares held by eligible shareholders as on the record date of 20 November 2020. The rights issue will open on 27 November 2020 and it will close on 11 December 2020.
Premier Explosives hit an upper circuit of 5% at Rs 138.75 after the company bagged an order worth Rs 20.33 crore from the Ministry of Defence, Government of India. The domestic order is for supplying 50 mm flares within a period of six months.
Indiabulls Real Estate jumped 9.07% to Rs 60.15, extending gains for the second day after ace investor Rakesh Jhunjhunwala's Rare Enterprises acquired the company's shares through bulk deal on Thursday. On Thursday, 12 November 2020, Rakesh Jhunjhunwala's Rare Enterprises bought 50 lakh shares, or 1.09% equity, of Indiabulls Real Estate through a bulk deal on the NSE at an average price of Rs 57.73. Morgan Stanley Asia (Singapore) sold 75.80 lakh shares of the company at an average price of Rs 57.16 on the same day. It held 3.70% stake or 1.67 crore shares of Indiabulls Real Estate as on 30 September 2020.
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