Sensex ends 136 points higher, Nifty around 11,950; metal stocks shine, YES Bank drags

04 Nov 2019

Intellect Desgin Q2: Consolidated net loss at Rs 17.1 crore against profit of Rs 3.4 crore QoQ. Consolidated revenue went down 4.7 percent at Rs 326.6 crore against Rs 342.8 crore QoQ.

Nocil Q2: Consolidated net profit up 3.9 percent at Rs 54.9 crore against Rs 52.9 crore YoY. Consolidated revenue was down 22.9 percent at Rs 209.7 crore against Rs 272 crore YoY.

Consolidated EBITDA went down 39.2 percent at Rs 48.5 crore against Rs 79.8 crore YoY while cons EBITDA margin stood at 23.1 percent against 29.3 percent YoY.

Market at close: Sensex ended 136.93 points or 0.34 percent in the green at 40301.96, and the Nifty gained 54.60 points or 0.46 percent at 11945.20. Metal stocks were the top performers while auto stocks dragged.

Tata Steel, Vedanta and ONGC were the top gainers while YES Bank, Mahindra & Mahindra, TCS and Tata Motors were the top losers. About 1404 shares have advanced, 1149 shares declined, and 174 shares are unchanged.

Market Update: The benchmark indices are trading higher but off day's high with Nifty hovering around 11,950 level.

The Sensex is up 180 points at 40,345.03, while Nifty is up 58.50 points at 11,949.10. About 1364 shares have advanced, 1051 shares declined, and 143 shares are unchanged.

Prakash Industries gains 6% on commencing mining operations

Share price of Prakash Industries rose more than 6 percent intraday on November 4 after company commenced mining operation in Orissa. The mining lease and obtaining all statutory clearances, the company has commenced the mining operations in the Sirkagutu Iron and Manganese ore mine of the company at Keonjhar (Orissa), as per company release.

Over burden removal has commenced w.e.f November 1 and the extraction of minerals from the mines is expected to pick up within November 2019.

This is an important mile stone for the company and the extraction of Iron Ore will result in significant cost reduction in the iron ore cost, which is a key input for steel making, thereby improving the operating margins of the company, it added.

European stocks open higher

European stocks opened higher Monday as renewed optimism over US-China trade talks looked set to reignite a risk-on approach from investors. The pan-European Stoxx 600 climbed 0.4 percent at the opening bell, with majority of sectors and major bourses trading in positive territory.

Varun Beverages gains after consolidated net profit jumps 83% YoY

Shares of Varun Beverages gained over a percent intraday on Monday after the company's consolidated net profit jumped 83.7 percent at Rs 81.1 crore against Rs 44.1 crore YoY.

Tax expense stood at Rs 34.5 crore against Rs 21.2 crore YoY while consolidated revenue went up 47.5 percent at Rs 1,777 crore against Rs 1,204.5 crore YoY.

Consolidated EBITDA grew 54.2 percent at Rs 325.6 crore against Rs 211.2 crore YoY while consolidated EBITDA margin stood at 18.3 percent against 17.5 percent YoY.

Trident, Relaxo Footwears up 8-15% on strong Q2 earnings

Shares of Trident and Relaxo Footwears rose eight percent and 15 percent, respectively, intraday on November 4 after the companies posted strong earnings for the quarter-ended September (Q2 FY20).

Relaxo Footwears touched a 52-week high of Rs 625. The company's Q2 net profit rose 78.7 percent year-on-year to Rs 70.5 crore. Revenue increased 14.5 percent YoY to Rs 621.8 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 42.4 percent to Rs 104.7 crore, while EBITDA margin was up 330 bps YoY to 16.8 percent.

Trident's Q2 consolidated net profit jumped 26.8 percent YoY to Rs 139.8 crore. Revenue was down 4.3 percent to Rs 1,340.7 crore. EBITDA fell 1.7 percent to Rs 259.3 crore, while margin was up 19.3 percent.

Edelweiss Financial gains 3% on ECL Finance plan to raise Rs 500 cr

Share price of Edelweiss Financial Services jumped 3 percent intraday on November 4 after ECL Finance, the NBFC arm of Edelweiss Group, announced a public issue of secured redeemable non-convertible debentures (NCDs) amounting to Rs 100 crore. The issue has a greenshoe option to retain up to Rs 400 crore, in case of oversubscription.

The public issue is of the face value of Rs 1,000 each, amounting to Rs 100 crore (base issue), with an option to retain over-subscription up to Rs 400 crore, adding to a Rs 500 crore(Tranche II Issue), the company said in a filing to the exchanges.

The NCDs offer an effective yield (cumulative) of 9.90 percent per annum for 24 months tenure, 10.20 percent per annum for 39 months, up to 10.40 percent per annum for 60 months and 10.41 percent for 120 months tenure (monthly option).

Rupee Update: The Indian rupee has erased some of its morning gains buy trading higher by 12 paise at 70.69 per dollar, amid buying seen in the domestic equity market.

Received bids worth $1.5 billion: Yes Bank CEO Ravneet Gill

Yes Bank has received bids worth USD 1.5 billion from eight investors, CEO Ravneet Gill told CNBC-TV18 in an exclusive interview. Gill further said, apart from bids worth USD 1.5 billion, various investors and family offices are interest in the bank.

Last week, Yes Bank said it has received a binding bid worth USD 1.2 billion from a global investor. Sources told CNBC-TV18 this bid is from SP Global Holdings but the two companies did not comment.

Gill told CNBC-TV18 the bank may look at raising more than USD 1.2 billion. Without divulging details about the USD 1.2 billion binding bid that Yes Bank received, Gill said it is backed by a “large US financial institution.” He said, “The bank should be able to announce details of binding bid in a few days.” Read more

Hikal jumps 9% on Establishment Inspection Report for Bengaluru unit

Shares of Hikal rallied 9.5 percent intraday on November 4 after company received Establishment Inspection Report for its Bengaluru unit.

The pharma company announced that it has received the Establishment Inspection Report (EIR) from the US Food and Drug Administration (US FDA) for its API unit located at Jigani, Bangalore.

Yes Bank gains 7% on possible capital infusion

Shares of Yes Bank added more than 7 percent intraday on November 4 on the back of possible capital infusion by the investors in the company. Investors are in discussion with Yes Bank to pump in capital of around $3 billion, the bank said on November 1

The bank had disclosed that one of the investors in discussion for $1.2 billion capital is a family office in the US. However, the private lender has reported loss of Rs 600.08 crore during July-September period.

BEML declines 4%

Share of BEML declined more than 4 percent intraday on November 4 after company posted a consolidated loss at Rs 27.2 crore in quarter ended September 2019. The company had reported a profit of Rs 16.6 crore in corresponding period last fiscal.

However, the net loss has narrowed compared to Rs 98.21 crore loss reported in June quarter. Its inventory loss stood at Rs 125.7 crore for the quarter against loss of Rs 12.8 crore in year-ago. Consolidated revenue during the quarter declined 6.4 percent year-on-year to Rs 687.1 crore.

Vodafone Idea rally for 3rd consecutive session; shares up 10%

Vodafone Idea rose more than 10 percent intraday and continued its upward journey for the third consecutive session on November 4 after the company management denied reports of exiting its India business.

Clarifying on reports of an exit of India operations by the Vodafone Group, the management said it is not aware 'about anything on this subject' as it pertains to the Vodafone Group and hence cannot comment on the same.

As regards to commitment to lenders, the company said it had received queries from some agencies and has responded/clarified them on a 'one-on-one basis'.

Tata Motors slips 2% on weak October sales data

Shares of Tata Motors slipped 2 percent in the early trade on November 4 on the back of weak sales numbers for the month October 2019. On November 1, the company reported a 34 percent fall in its October 2019 sales (domestic & international market) at 41,354 vehicles.

The carmaker had sold 62,264 units in October last year. The company’s domestic sales for October 2019 was down 32 percent at 39,152 units against 57,710 units YoY.

The total CV sales fell 36 percent at 28,002 units against 43,813 units and M&HCV sales shed 63 percent at 4,893 units against 13,185 units, YoY.

Market opens: Sensex is up 144.26 points or 0.36 percent at 40309.29 in the opening trade while the Nifty is up 52.40 points or 0.44 percent at 11943.00. Tata Steel, Vedanta and IndusInd Bank are the top gainers while YES Bank, Tata Motors and Mahindra & Mahindra are the top losers.

Rupee Opens: The Indian rupee gained in the early trade on Monday. It has opened higher by 26 paise at 70.55 per dollar versus Friday's close 70.81.

Market at pre-open: Benchmark indices are trading higher in the pre-opening session with Nifty above 11,900.

At 09:04 hrs IST, the Sensex is up 105.87 points or 0.26% at 40270.90, and the Nifty up 42.40 points or 0.36% at 11933.00.

Crude Update: Oil prices eased on Monday as traders remained cautious ahead of fresh European and US economic data, despite hopes for some resolution to the U.S.-China trade row that has hurt global economic growth and crimped energy demand.

HDFC Q2 preview: Co may report double-digit growth in Q2 profit, net interest income

Housing Development Finance Corporation (HDFC) is likely to report healthy earnings growth for the July-September quarter due to dividend from HDFC Bank and stake sale in GRUH Finance. But deferred tax assets (DTA) adjustment and mark-to-market (MTM) loss on its investment in RBL Bank may limit profit growth.

"Dividend from HDFC Bank (Rs 870 crore), capital gains from stake sale in GRUH Finance (Rs 1,630 crore), MTM loss on investment in RBL Bank (Rs 270 crore) and DTA impairment (Rs 275 crore) are one-offs for Q2," Kotak Institutional Equities said. The brokerage expects profit growth at 54 percent and pre-provision operating profit (PPoP) at 41 percent YoY. Read More

Asian shares extend gains on trade deal hopes, US job boost

Asian shares rose to 14-week highs on Monday as growing optimism over US-China trade talks and upbeat U.S. job data boosted global investors’ appetite for riskier assets.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2% in early trade, having earlier touched its highest level since July 29. Australian shares were up 0.2% and Seoul's Kospi added 0.9%. Markets in Japan were closed for a holiday.