Domestic equity benchmarks ended with robust gains on Friday, snapping a three-day losing streak. The Nifty settled above the 18,000 mark after hitting the day's low of 17,905.90 in mid-morning trade. PSU banks and media stocks corrected while IT and realty stocks rallied.
The barometer index, the S&P BSE Sensex, rallied 767 points or 1.28% to 60686.69. The Nifty 50 index added 229.15 points or 1.28% to 18,102.75.
Tech Mahindra (up 4.06%), HDFC (up 2.99%), Infosys (up 2.74%) and Reliance Industries (up 1.47%) boosted the indices.
Broader indices lagged the benchmarks. The S&P BSE Mid-Cap index rose 0.57% while the S&P BSE Small-Cap index rose 0.25%.
The market breadth was almost even. On the BSE, 1663 shares rose and 1650 shares fell. A total of 151 shares were unchanged.
The NSE's VIX index, a gauge of market's expectation of volatility over the near term, slumped 6.94% to 15.22.
Numbers to Track:
MCX Gold futures for 3 December 2021 settlement fell 0.48% to 48,981.
The yield on India's 10-year benchmark federal paper rose to 6.371% from its previous close of 6.367%.
In the foreign exchange market, the partially convertible rupee fell to 74.455 from its previous closing of 74.52.
In the commodities market, Brent crude for January 2022 settlement fell $1.01 or 1.22% to $81.86 a barrel.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was flat at 95.17.
The yield on the benchmark 10-year US Treasury note last stood at 1.58%. Yields move inversely to prices.
Global Markets:
Most shares in Europe and Asia advanced on Friday, as global investors assess recent high inflation prints and corporate earnings.
Earnings Impact:
Hindalco Industries rose 3.26%. The company's consolidated net profit surged 783% to Rs 3,417 crore in Q2 FY22 from Rs 387 crore in Q2 FY21. Revenue for the second quarter stood at Rs 47,665 crore as against Rs 31,237 crore in the same period last year, up 53% YoY.
EBITDA was Rs 8,048 crore in Q2 FY22, up by 56% from Rs 5,171 crore in Q2 FY21. Consolidated net debt to EBITDA ratio improved further to 1.93x on 30 September 2021 compared to 2.59x on 31 March 2021.
Hindalco said that the results were driven by an exceptional performance by Novelis and India Business, supported by favorable macros, strategic product mix, higher volumes, and stability in operations.
Tata Steel fell 0.93%. The steel maker recorded a consolidated net profit of Rs 12,548 crore in Q2 FY22 as against a net profit of Rs 9,768 crore in Q1 FY22, registering a growth of 28.5% on QoQ basis. Total revenue from operations rose by 12.9% QoQ to Rs 60,283 crore during the quarter. The company said that revenues improved across key entities with increase in realisation across geographies and higher deliveries at India, partially offset by lower deliveries at Europe. Raw material cost increased by 10.8% to Rs 22,218 crore in Q2 FY22 from Rs 20,044 crore in Q1 FY22. The increase was primarily due to increase in purchased iron ore and coal consumption cost across key entities, including higher purchase of finished & semi-finished goods.
Alkem Laboratories rose 0.55%. The drug maker's consolidated net profit rose 15.29% to Rs 544.26 crore on an 18.5% rise in net sales to Rs 2,799.99 crore in Q2 FY22 over Q2 FY21. Profit before tax rose 6.17% year-on-year to Rs 581.54 crore. During the quarter, total expenses rose 22.15% YoY to Rs 2,260.41 crore. Employee expense jumped 21.20% YoY to Rs 494.49 crore. Raw material cost increased 63.22% YoY to Rs 773.16 crore. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 624.4 crore, resulting in EBITDA margin of 22.3% as against 25.4% in Q2FY21. EBITDA grew by 4% YoY.
Motherson Sumi Systems jumped 3.58%. The auto ancillary company reported a 35.8% fall in consolidated net profit to Rs 216.86 crore on a 5.9% decline in total revenue from operations to Rs 14,076.39 crore in Q2 FY22 over Q2 FY21. Total expenses fell by 3% YoY to Rs 14,001.29 crore in the second quarter. Profit before tax in Q2 FY22 stood at Rs 178.67 crore, down by 67.7% from Rs 553.58 crore in Q2 FY21.
3M India fell 1.21% after the company reported 15% drop in consolidated net profit to Rs 64 crore despite a 22% rise in sales & other operating income to Rs 840 crore in Q2 FY22 over Q2 FY21. EBITDA contracted by 15% to Rs 101 crore in Q2 FY22 from Rs 119 crore in Q2 FY21. Profit before tax in Q2 FY22 stood at Rs 87 crore, down by 15% from Rs 102 crore in Q2 FY21. As compared with Q1 FY22, the company's net profit and sales are higher by 113% and 13%, respectively.
NMDC fell 1.17%. The company reported 27% drop in standalone net profit to Rs 2,341 crore on a 4% rise in revenue from operations to Rs 6,794 crore in Q2 FY22 over Q1 FY22. EBITDA declined 26% to Rs 3,203 crore in Q2 FY22 from Rs 4,322 crore in Q1 FY22. EBITDA margin was 47% in Q2 FY22 as against 66% in Q1 FY22. Profit before tax in Q2 FY22 stood at Rs 3,142 crore, down by 26% from Rs 4,263 crore in Q1 FY22. As compared with Q2 FY21, the company's net profit and revenue in Q2 FY22 are higher by 202% and 205%, respectively. Iron ore production declined by 2% to 87.70 lakh tonnes and iron ore sales fell by 5% to 89.85 lakh tonnes in Q2 FY22 over Q1 FY22. As compared with Q2 FY21, iron order production and sales are higher by 56% and 36%, respectively.
Zee Entertainment Enterprises fell 0.41%. The media company's consolidated net profit surged 187.19% to Rs 270.16 crore on 14.87% increase in net sales to Rs 1,978.79 crore in Q2 FY22 over Q2 FY21. The company's profit before tax rose 114.51% to Rs 359.04 crore in Q2 FY22 over Q2 FY21. Advertisement and publicity expense jumped 39.14% year-on-year to Rs 244.92 crore during the quarter on account of new launches and continued investments in ZEE5. EBITDA rose 31.4% to Rs 412.10 crore in Q2 FY22 over Q2 FY21. EBITDA margin stood at 20.8% in Q2 FY22, higher than 18.2% in Q2 FY21. EBITDA for the quarter grew by 19.8% QoQ.
Balkrishna Industries fell 0.73%. On a standalone basis, the company's net profit grew 11% to Rs 377 crore on a 29.82% increase in revenue from operations to Rs 2,050 crore in Q2 FY22 over Q2 FY21. Sales volumes climbed 19% to 72,748 million tonnes (MT) in Q2 FY22 from 61,224 million tonnes (MT) in Q2 FY21. Standalone EBITDA rose 7% to Rs 564 crore in Q2 FY22 from Rs 527 crore in Q2 FY21. EBITDA margin was at 27.1% in Q2 FY22 as against 34% in Q2 FY21. Profit margin stood at 18.1% in Q2 FY22 as compared to 21.9% in Q2 FY21.
Primary Market:
The initial public offer (IPO) of Latent View Analytics received bids for 572.04 crore shares as against 1.75 crore shares on offer, according to stock exchange data at 16:30 IST on Friday (12 November). The issue was subscribed 326.40 times.
The issue opened for bidding on 10 November 2021 and it will close today, 12 November 2021. The price band of the IPO is fixed at Rs 190-197. An investor can bid for a minimum of 76 equity shares and in multiples thereof. Ahead of the IPO, Latent View Analytics on 9 November 2021 finalized allocation of 1,35,53,898 equity shares to anchor investors at Rs 197 per share, aggregating to Rs 267.01 crore.
New Listing:
Shares of Fino Payments Bank settled at Rs 545.25 on the BSE, a discount of 5.50% compared with the issue price of Rs 577. The scrip was listed at Rs 548, a discount of 5% to the issue price.
The IPO of Fino Payments Bank was subscribed 2.03 times. The issue opened for bidding on 29 October and it closed on 2 November 2021. The price band of the IPO was fixed at Rs 560-577 per share.
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