Sensex closes above 39,000, Nifty below 11,600; Bharti Infratel, Grasim top losers

24 Oct 2019

Rupee ends lower: The Indian rupee erased all its morning gains and ended lower by 11 paise at 71.02 per dollar. The domestic unit had opened higher by 11 paise at 70.80 per dollar versus previous close 70.91. It touched an intraday high of 70.76 per dollar.

Nifty forms bearish candle, needs to surpass 11,700 for a rally:

The Nifty50 saw another day of consolidation and closed marginally lower as banks got caught in the bear trap after the Supreme Court rejected the telecom companies' definition of Adjusted Gross Revenue (AGR). No landslide victory for BJP in Maharashtra and Haryana also dented sentiment.

"Slowly, weakness appears to be creeping in as Nifty closed below its 5-day simple moving average (11,604). Hence, in the next trading session, if bears manage to push the index below 11,550 on the closing basis, then selling pressure may get accelerated further," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

Biocon, Indian Bank decline 6-12% after Q2 earnings

Shares of Biocon and Indian Bank declined 6 percent and 12 percent respectively on October 24 after the companies had announced their September quarter earnings on October 23.

Biocon reported 39.2 percent fall in its Q2FY20 net profit at Rs 215.7 crore against Rs 354.7 crore while the revenue was up 19 percent at Rs 1,572.2 crore versus Rs 1,321 crore year-on-year (YoY).

Indian Bank registered 139 percent YoY jump in its Q2FY20 net profit at Rs 358.6 crore while it was down on the sequential basis as it had reported profit of Rs 365.37 crore in quarter ended in June.

Polycab India, PI Industries hit 52-week high post Q2 numbers

Share price of Polycab India and PI Industries rose more than 7 percent intraday on October 24, both hitting 52-week high on the back of better Q2FY20 results.

PI Industries touched Rs 1,448.80 after the company reported 30 percent jump in its September quarter net profit at Rs 122.8 crore against Rs 94.4 crore, while revenue was up 25.5 percent at Rs 907.4 crore versus Rs 723 crore, YoY.

Market update: Nifty Realty index traded 1 percent higher even as al other sectoral indices were in the red. Around 15:00 hours IST, the Nifty Realty index was 1.07 percent up, with 7 stocks in the green and 3 in the red.

Shares of Godrej Properties, Mahindra Lifespace Developers, Phoenix Mills, Oberoi Realty and DLF climbed up to 4 percent.

Buzzing stock: After witnessing a fall of 10 percent, shares of Bharti Airtel jumped 4 percent on BSE in intraday trade.

The stock had nosedived after the Supreme Court rejected the telecom companies' definition of Adjusted Gross Revenue (AGR). With the judgment, the SC has exposed the incumbent telcos to potential demands by DOT of up to Rs 1.33 lakh crore.

The telecom major will announce its September quarter earnings on October 29.

NIIT gains 8% post Q2 numbers

Shares of NIIT gained nearly 8 percent intraday on October 24 after the company reported a net profit of Rs 209.4 crore on the back of a tax write-back of Rs 174.2 crore. The company had reported a profit of Rs 28.4 crore in a year ago period.

Revenue was up 4.7 percent at Rs 236.5 crore versus Rs 226 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 9.4 percent at Rs 24.4 crore, while EBITDA margin was up at 10.3 percent.

Maruti Suzuki Q2 profit tanks 39.4% to Rs 1,358.6 crore

Maruti Suzuki India registered a massive 39.4 percent year-on-year decline in profit due to weak auto sales amid subdued demand in the economy.

Profit declined to Rs 1,358.6 crore in quarter ended September 2019, from Rs 2,240.4 crore in same period last year. Sharp fall in corporate tax expenses (as company took maximum benefits of corporate tax rate cut announced by the government in September) and higher other income helped the company limit profit decline.

Revenue during the quarter dropped 24.3 percent year-on-year to Rs 16,985.3 crore as volumes fell 30 percent YoY.

Market update: Market benchmarks Sensex and Nifty are witnessing bouts of volatility as Investor sentiment was roiled by trends of Maharashtra and Haryana assembly poll results. The ruling BJP was on course to win Maharashtra but Haryana was increasingly looking like a hung house.

State Bank of India, Bharti Airtel, IndusInd Bank, Infosys and Axis Bank were among the top drags on the Sensex index. On the other hand, Reliance Industries, HCL Technologies and Kotak Mahindra Bank were holding up.

Oil update: Oil prices slipped on Thursday amid persistent concerns about a weak demand outlook, after posting sharp gains in the previous session following a surprise crude inventory drawdown in the United States, reported Reuters. Brent crude futures fell 17 cents, or 0.3 percent, to $61 a barrel by 0620 GMT.

Bandhan Bank's profit nearly doubles in Q2

Bandhan Bank reported a whopping 99.18 percent year-on-year (YoY) jump in net profit for the quarter ended September 30, 2019, at Rs 972 crore against Rs 488 crore in the corresponding quarter of the previous year.

Net interest income (NII) for the quarter grew by 41.84 percent YoY to Rs 1,529 crore in Q2 FY20 against Rs 1,078 crore in Q2FY19. Non-interest income grew by 56.96 percent YoY to Rs 361 crore for the quarter ended September 30, 2019, against Rs 230 crore in the corresponding quarter of the previous year.

Market Update: Sensex is up 24.43 points or 0.06 percent at 39083.26, and the Nifty is down 1.30 points or 0.01 percent at 11602.80. About 998 shares have advanced, 1034 shares declined, and 125 shares are unchanged. HCL Tech and Bajaj Auto are the top gainers while M&M and ONGC dragged.

ITC may see double-digit profit growth in Q2 on tax cut

Cigarette-hotel-to-FMCG major ITC is expected to report double-digit year-on-year growth in Q2 profit, largely due to lower tax expenses. Price hike in select cigarettes brands and likely rise in FMCG margin may also boost bottomline. The stock fell more than 10 percent year-to-date, underperforming Nifty FMCG index (up 4.4 percent in same period) and Nifty (up seven percent).

Brokerages expect Q2 profit growth to be in the 20-34 percent range compared to same period last year. "Reduction in the tax rate to 25.2 percent (32.4 percent in Q2 FY19) on account of the cut in corporate taxes by the government will lead to PAT growing ahead of EBITDA," said Edelweiss, which expects profit to increase 26 percent YoY.

Maruti Suzuki Q2 preview: Profit, EBITDA may decline 60% YoY on lower volumes

The country's largest car manufacturer Maruti Suzuki India is likely to report around 60 percent year-on-year decline in its September quarter profit, dented by lower volumes amid weak demand. The lower tax rate could limit the fall in its bottomline.

The stock has recovered 27 percent in the last couple of months on hopes of a demand improvement after the government announced several measures. Year-to-date, the stock is down just 0.3 percent.

Revenue from operations during Q2 FY20 may decline 23-27 percent on the back of 30 percent fall in volumes YoY. A likely increase in realisation may support the topline. "We expect revenue in Q2 to decline 24 percent on the back of a 30 percent YoY decline in volumes," Kotak Institutional Equities said.

Torrent Pharma up 4% as profit jumps 36% in Q2

Share price of Torrent Pharmaceuticals added more than 4 percent intraday on October 24 after company reported 36.3 percent jump in its Q2FY20 net profit at Rs 244 crore versus Rs 179 crore, YoY.

Revenue was up 5.9 percent at Rs 2,005 crore versus Rs 1,894 crore, YoY. Earnings before interest, tax, depreciation and amortization (EBITDA) rose 14.4% at Rs 541 crore, while EBITDA margin was up 200 bps at 27 percent.

DHFL shares locked at 5% lower circuit

Shares of Dewan Housing Finance Corporation (DHFL) were locked in the 5 percent lower price band at Rs 18.45 on BSE on October 24 after reports emerged its lenders will be sending findings of KPMG's forensic audit report to debt-ridden DHFL to seek its reply.

DHFL is expected to disclose the essence of the banker's note to the exchanges, sources told CNBC-TV18. KPMG's forensic report on DHFL is still in the draft stage. When presented to bankers, the report was still unsigned.

HCL Tech gains 6% on robust Q2 numbers

Shares of HCL Technologies added 6 percent intraday on October 24 after robust Q2 numbers and upward revision in full-year revenue guidance. The company’s Q2FY20 profit increased by 19.4 percent to Rs 2,651 crore versus Rs 2,220 crore in June quarter, while revenue grew by 6.7 percent quarter-on-quarter to Rs 17,528 crore in Q2.

It has registered a 5.2 percent QoQ growth in dollar revenue at $2,486 million and constant currency topline growth was 6 percent QoQ.

ITC shares climb 1% ahead of September quarter earnings

Shares of ITC climbed over a percent on BSE on October 24 ahead of the company's September quarter numbers.

The FMCG major is expected to report a double-digit growth year-on-year in the September quarter profit, largely due to lower tax expenses. Price hike in select cigarette brands and likely rise in FMCG margin may also boost the bottom line.

MTNL locked at upper circuit on merger announcement with BSNL

Shares of Mahanagar Telephone Nigam Limited (MTNL) were locked at 5 percent upper circuit on October 24 after the government telecom company announced merger with Bharat Sanchar Nigam Limited (BSNL).

On October 23, the government had approved nearly Rs 70,000 crore revival package for loss-making telecom PSUs BSNL and MTNL and merger of both the companies.

Market update: Losses in shares of Bharti Airtel, Vodafone Idea and Bharti Infratel were keeping the BSE Telecom index down by nearly 2 percent in a positive market. Out of the total 13 components in the index, 5 were trading with losses around 09:25 hours IST.

Market update: Equity benchmarks Sensex and Nifty were trading higher by about half-a-percent. Secondary barometers were underperforming benchmarks. The BSE Midcap was 0.14 percent up and the Smallcap index was 0.41 percent up around 09:20 hours.

Rupee, bond yield update: Rupee opened 11 paise higher at 70.80 per dollar against Wednesday's close of 70.91. Government 10-year benchmark bond yield opened at 6.70 percent against the previous close of 6.69 percent.

Gold update: Gold held ground above $1,490 per ounce in international markets on Thursday as investors awaited clarity on Brexit after the European Union delayed a decision on granting an extension to Britain, and the US central bank policy meeting for clues on the interest rate trajectory.

Market Headstart: Nifty50 seen opening higher; HCL Tech, Hero MotoCorp eyed

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 27.5 points gain or 0.24 percent. Nifty futures were trading around 11,666-level on the Singaporean Exchange.

Oil update: Oil prices dipped on Thursday on lingering concerns about a weak demand outlook, after surging more than 2 percent in the previous session on the back of a surprise draw in US crude stocks.

SGX Nifty update: SGX Nifty is indicating a positive start for the Indian market. Around 08:10 hours IST, the Nifty futures was at 11,667, up 29 points or 0.24 percent on Singapore exchange.

Asian markets update: Asian shares pulled ahead on Thursday with corporate earnings buffeting trading as investors remained anxious about the business impact of the Sino-US trade war while Brexit uncertainties kept overall sentiment in check.