Key equity indices ended lower on Wednesday, tracking negative global cues. After opening higher, the Nifty 50 index hit the day's high of 18,342.05 in mid-morning trade. The index lost momentum and slipped into the red in mid-afternoon trade. It hit the day's low of 18,167.90 in late trade. Private banks and metal shares dragged while PSU banks and IT shares advanced.
The barometer index, the S&P BSE Sensex, fell 206.93 points or 0.34% at 61,143.33. The Nifty 50 index was down 57.45 points or 0.31% at 18,210.95.
Axis Bank (down 6.52%), Bajaj Finance (down 4.70%) and Bajaj Finserv (down 1.85%) were major drags.
Asian Paints (up 4.42%), Sun Pharmaceutical Industries (up 1.45%) and Infosys (up 1.44%) supported the indices.
The broader indices ended higher. The BSE Mid-Cap index rose 0.02% and the BSE Small-Cap index gained 0.30%.
The market breadth was positive. On the BSE, 1,787 shares rose and 1,462 shares fell. A total of 145 shares were unchanged.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.337% as compared with 6.362% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.03, compared with its close of 74.9650 during the previous trading session.
MCX Gold futures for 3 December 2021 settlement fell 0.19% to Rs 47,722.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.04% to 93.99.
In the commodities market, Brent crude for December 2021 settlement fell 80 cents at $85.60 a barrel. The contract rose 41 cents, or 0.48% to settle at $86.40 a barrel in the previous trading session.
Foreign Markets:
European stocks fell across the board while most Asian stocks ended lower on Wednesday as traders weighed the latest U.S. earnings reports amid lingering concerns about growth risks from elevated inflation and China's indebted property sector.
In the UK, Finance Minister Rishi Sunak is said to deliver his budget later in the session. The half-yearly update on the country's public finances is expected to bring increased spending on health care, transport and a rise in public sector pay.
In Asia, profits at China's industrial firms rose at a faster pace in September even as surging raw material prices and supply bottlenecks squeezed margins and weighed on factory activity. Profits jumped 16.3% on-year to 738.74 billion yuan ($115.72 billion), the statistics bureau said on Wednesday, quickening from the 10.1% gain reported in August.
In the US, the consumer confidence index increased to 113.8 in October from 109.8 in September as concerns about high inflation were offset by improving labor market prospects.
Earnings Impact:
Maruti Suzuki India rose 0.77%. The car maker's net profit dropped 65.3% to Rs 475.3 crore in Q2 FY22 from Rs 1,371.6 crore in Q2 FY21. Net sales rose by 9.1% YoY to Rs 1,929.78 crore during the quarter. Operating EBIT declined by 91.5% to Rs 98.8 crore in Q2 FY22 from Rs 116.77 crore in Q2 FY21. Operating EBIT margin was 0.5% as on 30 September 2021 as against 6.6% as on 30 September 2020.
The company further said that an estimated 116,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The company had more than 200,000 pending customer orders at the end of the quarter for which the company is making all efforts to expedite deliveries.
Axis Bank fell 6.52%. The bank's net profit surged 86.21% to Rs 3133.32 crore on 2.99% increase in total income to Rs 20134.39 crore in Q2 FY22 over Q2 FY21. The bank's Net Interest Income (NII) grew 8% YoY to Rs 7,900 crore from Rs 7,326 crore in Q2FY21. Net interest margin (NIM) for Q2 FY22 stood at 3.39%.
United Spirits jumped 6.28%. The company reported 112.9% rise in standalone net profit to Rs 273.4 crore in Q2 FY22 from Rs 128.4 crore in Q2 FY21. Net sales increased by 14% YoY to Rs 2,446.8 in Q2 FY22, reflecting a strong quarter.
The company said that the off-trade gained momentum after the second wave of the COVID-19 pandemic; however, on-trade continues to gradually recover with the easing of restrictions. Prestige & Above segment net sales grew 20.8%. Delivered high double digit Scotch whisky growth during the quarter. Popular segment net sales remain flat compared to the same quarter of the previous year.
Cipla gained 1.49% after the drug major's consolidated net profit grew 7% year on year to Rs 711 crore on a 10% rise in total revenue from operations to Rs 5,520 crore in Q2 FY22 over Q2 FY21. The drug maker's profit before tax increased 7.5% to Rs 995.81 crore in Q2 FY22 as compared to Rs 925.65 reported in Q2 FY21. EBITDA rose 4% year on year to Rs 1,226 crore in Q2 FY22. EBITDA margin for Q2 FY22 stood at 22.2% as compared to 23.4% posted in Q2 FY21. R&D investments stood at Rs 274 crore in Q2 FY22 with priority projects spends on track.
Persistent Systems advanced 2.56% after the company reported 6.9% rise in consolidated net profit to Rs 161.75 crore on a 9.9% increase in revenue to Rs 1,351.24 crore in Q2 FY22 over Q1 FY22. EBITDA improved by 11.4% to Rs 224.39 crore in Q2 FY22 from Rs 201.52 crore in Q1 FY22. EBITDA margin was 16.6% as on 30 September 2021 as against 16.4% as on 30 June 2021. Profit before tax in Q2 FY22 stood at Rs 217.63 crore, up by 7.2% from Rs 203.05 crore in Q1 FY22. In dollar terms, the company's revenue in the second quarter was $182.32 million (up 9.3% QoQ and up 34% YoY). The IT firm's net profit and revenue has risen by 58.6% and 34.1%, respectively, in Q2 FY22 as compared with Q2 FY21.
Zensar Technologies jumped 6.78%. The company's consolidated net profit fell 6.53% to Rs 94.40 crore on 12.15% increase in net sales to Rs 1,050.60 crore in Q2 FY22 over Q1 FY22. Earnings before interest, tax, depreciation and amortization (EBITDA) fell 6.5% to Rs 161.30 crore in Q2 FY22 over Q1 FY22. EBITDA margin stood at 15.3% in Q2 FY22 lower than 18.4% in Q1 FY22 and 19.4% in Q2 FY21. In Q2FY22, the company reported revenue of $141.9 million, a constant currency sequential QoQ growth of 12.3%.
Dr. Lal PathLabs skid 0.84%. On a consolidated basis, Dr Lal Path Labs net profit jumped 10.56% to Rs 96.30 crore on a 15.39% surge in revenue from operations to Rs 498.40 crore in Q2 September 2021 over Q2 September 2020. The COVID-19 and allied contributed 10.1% to revenue in Q2 FY22 with 4.7 lakh RT-PCR tests. Normalised EBITDA grew 13.1% to Rs 152.20 crore in Q2 FY22 as against Rs 134.70 crore in Q2 FY21. Normalised EBITDA margins stood at 30.5% in Q2 September 2021 over 31.2% in Q2 September 2020. Profit margins was at 19.3% in Q2 FY22 from 20.2% in Q2 FY21.
Meanwhile, Dr Lal Path Labs has acquired Suburban Diagnostics in an all-cash deal for an enterprise value of Rs 925 crore and a cap of Rs 1,150 crore, the company said in regulatory filings on Tuesday.
Torrent Pharmaceuticals declined 4.18%. On a consolidated basis, Torrent Pharmaceuticals' net profit rose 1.93% to Rs 316 crore on a 5.94% increase in net revenue from operations to Rs 2,137 crore in Q2 FY22 over Q2 FY21, bouyed by strong momentum in branded generic markets. Gross profit rose 5% to Rs 1,542 crore in Q2 September 2021 as compared to Rs 1,463 crore in Q2 September 2020. EBITDA jumped 11% to Rs 711 crore in Q2 FY22 as against Rs 641 crore in Q2 FY21. R&D spend gained 9% to Rs 130 crore in Q2 September 2021 from Rs 119 crore in Q2 September 2020.
TTK Prestige soared 17.80% after the company's consolidated net profit rose 58.21% to Rs 103.53 crore on 34.86% increase in net sales to Rs 858.55 crore in Q2 FY22 over Q2 FY21. Profit before tax (PBT) rose 59.28% to Rs 138.75 crore in Q2 FY22 over Q2 FY21. The board also approved the proposed 10-for-1 stock split.
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