As per provisional closing data, the barometer index, the S&P BSE Sensex, rose 85.81 points or 0.2% at 43,443.23. The Nifty 50 index gained 29.15 points or 0.23% to 12,719.95.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index was up 0.87% while the S&P BSE Small-Cap index gained 1.07%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1588 shares rose and 1074 shares fell. A total of 195 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,514.12 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,239.43 crore in the Indian equity market on 12 November, provisional data showed.
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.
Results Today:
ONGC (up 0.42%), Tata Steel (up 2.79%) and General Insurance Corporation (up 1.04%) will announce quarterly results today.
Earnings Impact:
Eicher Motors jumped nearly 7%. 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 1.93% 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 4.3%. 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 2.16% 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.
Housing and Urban Development Corporation (HUDCO) fell 2.13% after consolidated net profit slumped 37% to Rs 457.25 crore on 9.19% decrease in total revenue from operations to Rs 1856.78 crore in Q2 September 2020 over Q2 September 2019. The gross non-performing assets (NPAs) grew 2.98% to Rs 3,291.59 crore as on 30 September 2020 as against Rs 3,196.23 crore as on 30 September 2019. The ratio of gross NPAs to gross advances stood at 4.21% as on 30 September 2020 as against 4.20% as on 30 September 2019. The ratio of net NPAs to net advances stood at 0.49% as on 30 September 2020 compared with 0.39% on 30 September 2019. The company has made provision on bans (impairment) as per Expected Credit Loss (ECL) method amounting to Rs 3,174.50 crore as on 30 September 2020.
Mazagon Dock Shipbuilders jumped 4.27% 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.
Sterling and Wilson Solar tumbled 4.09% after the company's consolidated net profit slumped 81% to Rs 15.09 crore in Q2 FY21 from Rs 79.41 crore in Q2 FY20. Net sales during the quarter increased by 12% year-on-year (YoY) to Rs 1336.63 crore in Q2 FY21. Total expense jumped by 16.6% YoY to Rs 1,358.42 crore in Q2 FY21 over Q2 FY20. Profit before tax in Q2 September 2020 stood at Rs 17.52 crore, down by 82.6% from Rs 100.85 crore in Q2 September 2019. Current tax outgo declined by 78.4% YoY to Rs 2.95 crore in Q2 FY21. The company reported order inflow of 1.4 GW amounting to Rs 5,696 crore from 1st April 2020 until 30th September 2020. i.e. 124% of restated FY20 order booking (after exclusion of non-contracted projects). The company has strong order backlog with unexecuted order value exceeding Rs 9,000 crore.
Stocks in Spotlight:
Shoppers Stop rose 2.63% 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 9.34% to Rs 60.3, 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.
Global Markets:
The US Dow Jones futures were up 269 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.
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