Key indices extended gains in mid-morning trade amid positive global cues. Investors across the globe watched for U.S. election results. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 434.47 points or 1.09% at 40,192.05. The Nifty 50 index added 121.60 points or 1.04% at 11,790.75.
In the broader market, the S&P BSE Mid-Cap index rose 0.71% while the S&P BSE Small-Cap index gained 0.66%.
The market breadth was positive. On the BSE, 1413 shares rose and 855 shares fell. A total of 140 shares were unchanged.
Buzzing Index:
The Nifty Bank index rose 1.96% to 25,380.85. The index has added 6.2% in two days.
RBL Bank (up 3.67%), ICICI Bank (up 3.46%), Bandhan Bank (up 3.11%), IndusInd Bank (up 2.55%), SBI (up 2.42%), HDFC Bank (up 2.20%) and Federal Bank (up 1.84%) advanced.
Earning Impact:
Cadila Healthcare surged 6.92% at Rs 438.55 after consolidated net profit soared 411% to Rs 423.60 crore on 16% jump in net sales to Rs 3,762.30 crore in Q2 September 2020 over Q2 September 2019. EBIDTA margin stood at 22.6% during the quarter, which improved significantly by 370 basis points (bps) compared to 18.9% registered in Q2 FY20.
Cadila said that it had significantly reduced its net debt by Rs 2,709 crore in the first six months of FY21, which is 40% reduction from net debt reported in March 2020. The net debt as on 30 September 2020 stood at Rs 4,031 crore as against Rs 6,740 crore as on 31 March 2020.
Cadila said it will be completing the pre-clinical development on ZYIL 1, a small molecule NCE positioned for management of critically ill COVID-19 patients. The Phase II clinical trials of Desidustat in the management of COVID-19 is underway at Mexico. The firm has also completed Phase-II clinical trials of Pegylated Interferon Alpha-2b in India for management of COVID-19. The company has launched Remdesivir injection in India and Emerging markets at the most economical price providing greater access to the therapy by making it more affordable to patients.
The counter of Cadila Healthcare recorded trading volume of 4.89 lakh shares on BSE, a 4.32 fold spurt over two-week average daily volume of 1.13 lakh shares.
The Ramco Cements rose 1.03% to Rs 810.25 after the company posted a 41.4% jump in consolidated net profit to Rs 243.52 crore in Q2 September 2020 from Rs 172.26 crore in Q2 September 2019. The cement manufacturer's net sales declined 5.1% to Rs 1,216.71 crore in Q2 September 2020 over Q2 September 2019.
The Ramco Cement said during the quarter, the sale of cement for the company fell 19% to 2.21 million tons from 2.72 million tons posted in the corresponding period of the previous year. The sale was impacted mainly because of lockdown imposed, restricted access in containment zones due to COVID19 and unusually heavy rains in Kerala, Karnataka, AP and Telangana during August and September 2020. Even though it has grown in eastern markets, heavy rains affected the growth rate in those markets. However, the company expects demand to pick up in the coming quarters.
KEI Industries declined 1.27% to Rs 329.80 after the company posted a 10.4% drop in net profit to Rs 68.22 crore on 15.7% decline in net sales to Rs 1036.94 crore in Q2 September 2020 over Q2 September 2019.
The company's cable business segment revenue fell 12.48% to Rs 870.68 crore in Q2 September 2020 over Q2 September 2019. Revenue from stainless steel wire segment fell 1.14% year-on-year to Rs 33.51 crore in Q2 September 2020. EPC projects segment revenue declined by 22.76% to Rs 247.71 crore in Q2 September 2020 over Q2 September 2019.
Global Markets:
Shares in Asia rose across the board ahead of the US Presidential election on Tuesday. Rising infection rates in Europe, that prompted more governments to reimpose restrictions on travel and business, continue to weigh on investor sentiment.
The US stocks finished choppy session higher on Monday, 02 November 2020, as investor's risk sentiments were partially helped by a surprisingly big improvement in Chinese economic data. Ahead of the presidential election, polls continued to show that Democrat Joe Biden held a strong lead over Donald Trump.
Shares of mega cap technology shares slid with Facebook (down 0.7%), Amazon (down 1%), Apple (down 0.1%) and Microsoft (down 0.1%) all lower. But the rebound in crude oil prices pushed Chevron (up 3.8%) higher. Shares of cleaning products company Clorox rose 4.2% after reporting its strongest quarterly sales growth in two decades. Market research firm Nielsen Holdings shares gained 3.9% on plans to sell its consumer goods data unit for US$2.7 billion to private equity firm Advent International.
US construction spending rose by 0.3% to an annual rate of $1.414 trillion in September after climbing by 0.8% to $1.410 trillion in August, the Commerce Department revealed in a report released on Monday. The weaker than expected growth in construction spending came as an increase in spending on private construction was partly offset by a drop in spending on public construction.
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