As per provisional closing data, the barometer index, the S&P BSE Sensex slumped 599.64 points or 1.48% at 39,922.50. The Nifty 50 index lost 157.1 points or 1.32% at 11,732.10.
In broader market, the S&P BSE Mid-Cap index declined 0.97% while the S&P BSE Small-Cap index fell 0.8%. The decline in both these indices was lesser than the Sensex.
The market breadth was weak. On the BSE, 1006 shares rose and 1626 shares fell. A total of 155 shares were unchanged.
COVID-19 Update:
India reported 6,10,803 active cases of COVID-19 infection and 120,010 deaths while 72,59,509 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Total COVID-19 confirmed cases worldwide stood at 43,906,632 with 1,166,193 deaths, according to data from Johns Hopkins University.
Buzzing Segment:
Shares of airline companies came under pressure after the Directorate General of Civil Aviation (DGCA) extended suspension of international flights till 30 November 2020. Only International all-cargo operations and flights specifically allowed to operate by the aviation regulator, such as repatriation flights, charter flights, and flights under the Vande Bharat Mission, will continue to operate, a DGCA circular said.
InterGlobe Aviation fell 2.29% to Rs 1296.15 while SpiceJet was down 2.4% to Rs 50.70.
Earnings Today:
Axis Bank (down 0.23%) and Hero MotoCorp (up 3.2%) will announce Q2 results today.
Earnings Impact:
Dr Reddy's Laboratories fell 3.32% after consolidated net profit dropped 30.22% to Rs 762.30 crore on 1.99% increase in revenues to Rs 4,896.70 crore in Q2 September 2020 over Q2 September 2019. Revenues from Global Generics (GG) segment stood at Rs 3,980 crore, recording a Year-on-Year (Y-o-Y) growth of 21% and sequential quarter growth of 14%, primarily driven on account of new product launches, volume traction in the base business and integration of the acquired business from Wockhardt in India. Revenues from India stood at Rs 910 crore, registering a Y-o-Y growth of 21% and sequential quarterly growth of 46% on account of revenues from the acquired business of Wockhardt and contribution from new products including the Avigan (Favipiravir) and Remdesivir launched for treatment of COVID-19. Gross profit margin stood at 53.9%, recording a decline of 360 bps over previous year, which was impacted due to inclusion of revenue from sale of Neurology franchise products in the previous year.
Titan Company fell 1.2% after the company's standalone net profit declined 37.8% to Rs 199 crore on 11% fall in net sales to Rs 3892 crore in Q2 September 2020 over Q2 September 2019. Titan reported an 89% recovery in sales in Q2 of FY 2020-21 led by sharp recovery in the Jewellery division post the significant disruption caused by the COVID-19 pandemic in India in the first quarter of the fiscal. The company's jewellery division recorded an income of Rs 3,446 crore for the quarter (excluding gold bullion sales) as compared to Rs 3,528 crore last year, a decline of 2%. The watches and wearables business recovered well in the quarter to record an income of Rs 400 crore against Rs 719 crore in the previous year, a decline of 44%. The eyewear business also improved with revenues declining by 39% in the quarter, recording an income of Rs 94 crore as against Rs 154 crore last year.
Bharti Airtel jumped 4.19%. The telecom major reported a net loss of Rs 763.20 crore in Q2 September 2020, lower than net loss of Rs 23,045 crore in Q2 September 2019. Consolidated revenues jumped 22% to Rs 25,785 crore in Q2 September 2020 over Q2 September 2019. Pre-tax profit (before exceptional items) stood at Rs 567 crore in Q2 September 2020 as against a pre-tax loss (before exceptional items) of Rs 623 crore in Q2 September 2019. During the quarter, EBITDA rose 32.6% year-on-year to Rs 11,848 crore. EBITDA margin stood at 46% in Q2 September 2020, higher than 42.3% Q2 September 2019. Mobile ARPU stood at Rs 162 in Q2FY21 compared with Rs 128 in Q2FY20.
ICICI Prudential Life Insurance Company fell 0.72%. The company's standalone net profit rose 0.5% to Rs 303.22 crore in Q2 September 2020 from Rs 301.86 crore in Q2 September 2019. Total income surged 105.08% to Rs 16,835.36 crore in Q2 September 2020 as against Rs 8,209.08 crore in Q2 September 2019. Net premium income increased by 6.3% year-on-year (YoY) to Rs 8,572.19 crore in Q2 September 2020 over Q2 September 2019. The life insurer reported a net income from investments of Rs 7,949.37 crore in Q2 FY21 as against a net loss from investments of Rs 126.90 crore in Q2 FY20. Value of new business (VNB), used to measure profitability of the new business written in a period, rose 0.3% to Rs 401 crore in Q2 September 2020 from Rs 400 crore in Q2 September 2019. The company's VNB margin improved to 27.4% in Q2 FY21 from 21.1% in Q2 FY20.
Nippon Life India Asset Management fell 0.16%. The AMC said its net profit rose 6.2% to Rs 145.23 crore on a 0.1% decrease in total income to Rs 322.36 crore in Q2 September 2020 over Q2 September 2019. As on 30 September 2020, Nippon Life India Asset Management (NAM India) assets under management (AUM) stood at Rs 2,76,774 crore (i.e. $ 37.40 billion). For the quarter ended 30 September 2020, NIMF's average assets under management was at Rs 2,00,030 crore (i.e. $ 27 billion). For the quarter ended 30 September 2020, share of equity assets rose to 39% of NIMF's AUM as against 38% for the quarter ended 30 June 2020. As on September 2020, NIMF has one of the largest retail assets in the Industry, at Rs 52,020 crore (i.e. $ 7 billion). Retail assets contributed 26% to NIMF's AUM.
Network18 Media & Investments rose 1% after the media major reported a net profit of Rs 68.01 crore in Q2 September 2020 compared with net loss of Rs 24.68 crore in Q2 September 2019. Consolidated net sales fell 9.6% to Rs 1,060.89 crore in Q2 September 2020 over Q2 September 2019. Pre-tax profit stood at Rs 89.09 crore in Q2 September 2020 as against a pre-tax loss of Rs 14.47 crore in Q2 September 2019. Consolidated EBITDA zoomed 114% to Rs 166 crore in Q2 FY21 as against Rs 77 crore in Q2 FY20, as revenues are firmly on the road to a full recovery. EBITDA margin improved to 15.6% in Q2 FY21 from 6.6% in Q2 FY20. The company witnessed a step-jump in EBITDA margins for both News and Entertainment to healthy levels.
Global Markets:
The US Dow Jones index futures were down 462 points, indicating a weak opening in the US stocks today.
Shares in Europe tumbled while Asian stocks ended mixed on Wednesday as worries about a surge in coronavirus cases and dwindling hopes for a U.S. stimulus package kept investors gloomy.
New Covid-19 cases, hospitalizations and deaths have reportedly continued to surge across Europe and the U.S. in recent days, prompting further restriction measures in many countries. Reports have suggested that France could be heading for a national lockdown in a bid to contain the resurgent outbreak. Mainland China also reported its highest number of daily new cases for more than two months on Wednesday.
In US, the Dow Jones Industrial Average and S&P 500 fell on Tuesday as concerns about the rising number of coronavirus cases dented investor sentiment once again. The Nasdaq Composite bucked the negative trend as tech shares gained broadly.
Senate Majority Leader Mitch McConnell adjourned the Senate until November 9, further diminishing the prospects of a deal being reached before the election.
US consumer confidence dipped slightly in October as a new wave of coronavirus cases appeared across the country. The Conference Board reported Tuesday that its consumer confidence index fell to a reading of 100.9, from 101.8 in September, but still remains well below pre-pandemic levels. This month's moderate decline follows a sharp rise in September.
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