Sensex ends 300 points lower, Nifty below 11,600; Infosys tanks 16%

22 Oct 2019

Rupee closed higher: The Indian rupee closed 21 paise higher at 70.94 per dollar on October 22.

As per HDFC Securities, spot USD-INR is having support in the range of 70.70 to 70.50, while resistance is around 72.

"USD-INR October options distribution is indicating resistance between 72-72.50 - the levels where call writing was seen - and support at 70.50. USD-INR is expected to continue its downward spree following month-end dollar demand and central banks dollar buying," said HDFC Securities.

Axis Bank reports loss in Q2FY20 due to one-time tax impact

Axis Bank posted a below expectation September quarter numbers of the financial year 2020 on October 22, reporting a net loss of Rs 112.1 crore. The bank had reported a profit of Rs 789.61 crore in the corresponding quarter of the previous financial year, whereas in the June quarter of FY20, the bank’s profit was Rs 1,370.08 crore.

The poll of CNBC-TV18 had estimated a profit of Rs 668.3 crore for the September quarter of FY20. The bank said it incurred a loss in Q2 due to a one-time tax impact of Rs 2,138 crore on change in the corporate tax rate. “Excluding of this extraordinary item, PAT would have been Rs 2,026 crores, up 157 percent year-on-year (YoY),” Axis Bank said.

Welspun India Q2: Consolidated net profit (GU) came at 198.5 crore for the quarter ended September 30, 2019, against Rs 114.8 crore in the same quarter of the previous financial year. Consolidated revenue (GU) came at Rs 1,824.9 crore against Rs 1,779.9 crore (YoY), while EBITDA (GU) came at Rs 391.3 crore against Rs 300.8 crore (YoY). Consolidated EBITDA margin stood at 21.4 percent against 16.9 percent (YoY).

Bank of Maharashtra Q2: Shares of Bank of Maharashtra surged 18 percent on BSE on October 22, buoyed by the company's strong July-September quarter numbers.

The company's net profit jumped over 4 times to Rs 114.6 crore year-on-year (YoY) against Rs 27 crore in the corresponding quarter of the previous year.

Net NPA declined to 5.48 percent in Q2 FY20 against 10.61 percent in the same quarter of the last financial year. Gross NPA stood at 16.86 percent against 18.64 percent in Q2FY19.

Provisions stood at Rs 359.2 crore YoY against Rs 857.7 crore.

Kotak Mahindra Bank Q2 profit jumps 51% to Rs 1,724.5 cr, but asset quality weakens

Kotak Mahindra Bank reported higher-than-expected profit growth of 51 percent in quarter ended September 2019 YoY, but asset quality weakened on sequential basis. Standalone profit increased to Rs 1,724.5 crore during the quarter, from Rs 1,141.6 crore in same period last year.

Net interest income, the difference between interest earned and interest expended, jumped 25.2 perent to Rs 3,349.6 crore compared to year-ago, with loan growth at 15 percent YoY. Net interest margin improved to 4.61 percent in Q2FY20, from 4.49 percent in previous quarter.

However, asset quality weakened in September quarter with gross non-performing assets (as a percentage of gross advances) rising 13bps sequentially to 2.32 percent and net NPA climbing 12bps QoQ to 0.85 percent in Q2.

Bajaj Finance Q2 beats estimates, profit grows 63%

Bajaj Finance's July-September quarter earnings beat analyst expectations on October 22 as consolidated profit grew by a whopping 63 percent year-on-year to Rs 1,506.3 crore. Company reported profit for the quarter ended September last year at Rs 923.5 crore.

Net interest income increased 48 percent year-on-year to Rs 3,999 crore in Q2, with assets under management growth of 38 percent at Rs 1.35 lakh crore YoY. The non-banking finance company said new loans booked increased 23 percent YoY to 6.47 million in September quarter.

Dish TV falls 5% after promoter stake drops in September quarter

Shares of Dish TV fell more than 5 percent intraday on October 22 after promoter’s stake in the company reduced during the quarter ended September 2019. The latest shareholding pattern available on the exchanges showed that the stake of promoter and promoter group fell to 55.27 percent at the end of September quarter 2019, against 57.52 percent as of June this year.

Among others, Deutsche Bank Trust Company Americas cut its stake in the company to 8.22 percent from 9.34 percent earlier QoQ.

Granules India zooms 14% after Q2 profit of Rs 96 cr, USFDA nod for allergy drug

Shares of Granules India zoomed over 14 percent intraday on October 22 after the pharmaceutical company reported consolidated net profit of Rs 96 crore against Rs 60.3 crore YoY. The company’s consolidated revenue jumped 20.4 percent at Rs 699.5 crore against Rs 581 crore YoY.

The USFDA approved the Abbreviated New Drug Application filed by Granules India for Fexofenadine Hydrochloride Tablets USP, 60 mg and 180 mg (OTC). It is the bioequivalent of Allegra Allergy Tablets, 60 mg and 180 mg, of Sanofi-Aventis US LLC, the company told BSE.

ICICI Lombard shares hit all-time high after Q2 numbers

ICICI Lombard General Insurance Company jumped 4 percent to their fresh all-time high of Rs 1,292.65 on BSE on October 22, buoyed by its decent September quarter show. The company on October 18 posted a 5 percent year-on-year (YoY) increase in its September quarter (Q2) net profit at Rs 307.91 crore.

The general insurer's underwriting loss came down significantly to Rs 8.75 crore compared to Rs 21.49 crore loss in the year-ago period. The combined ratio stood at 102.6 percent in Q2FY20 compared to 101.1 percent a year ago. Brokerages have given mixed reviews on the stock after the company's September quarter numbers.

IRCTC jumps 11% for 3rd consecutive session

Shares of Indian Railway Catering & Tourism Corporation (IRCTC) remained on the buyers' radar for third consecutive session on October 12, rising 11 percent intraday.

The consistent buying interest has lifted the stock by 170 percent since last week, from issue price of Rs 320. The market capitalisation increased from Rs 5,000 crore to nearly Rs 14,000 crore in week's time.

Oberoi Realty dips 6% after sharp fall in September quarter profit

Shares of Oberoi Realty fell more than 6 percent intraday on October 22 after the profit during July-September period declined sharply compared to year ago. Consolidated net profit during the quarter was down by 35.4 percent year-on-year at Rs 138 crore, while revenue fell 17.1 percent to Rs 491.1 crore in Q2FY20.

At operating level, earnings before interest, tax, depreciation and amortisation plunged 28.2 percent to Rs 212.53 crore and margin contracted 670bps to 43.3 percent compared to same period last year.

Yes Bank shares jump 10% amid buzz of taking over Sumer Group’s land

Shares of Yes Bank remained on the upward trajectory for the sixth consecutive day as the stock jumped as much as 10 percent in intraday trade on BSE on October 22. The stock was in the green amid reports that it is likely to ake over Rs 6,000 crore of land held by Sumer Group in Radius joint venture (JV) over non-payment of Rs 479 crore loan.

An Economic Times report said Yes Bank is to take control of real estate developer Sumer Group’s 50 percent share in two land parcels, totalling 6.4 acres, held by its joint venture company in Mumbai’s Santacruz locality.

Shree Cement jumps 9% post Q2 earnings

Shree Cement rallied 9 percent intraday on October 22 after second quarter earnings beat analyst expectations on Saturday. The cement maker reported more than six-fold jump year-on-year in second quarter profit at Rs 309 crore, driven by healthy operating income and low base in year-ago period.

Revenue also beat analyst expectations, rising 5.2 percent year-on-year to Rs 3,004.4 crore in quarter ended September 2019, with cement volumes growth at 1 percent YoY.

Axis Bank shares climb 2% ahead of September quarter numbers

Shares of Axis Bank climbed nearly 2 percent on BSE on October 22 ahead of its second-quarter earnings, scheduled for today. The stock traded with gains even as the private sector lender is expected to report a sharp decline in the profit for the quarter ended September 2019, dented by deferred tax assets (DTA).

However, the brokerage said pre-provision operating profit and loan growth may remain strong with stable asset quality. Brokerages feel the bank’s profit (ex of DTA) may grow more than 100 percent, backed by PPoP, other income and net interest income growth.

Asahi Songwon climbs 6% after JV with Tennants Textile for Gujarat plant

Shares of Asahi Songwon Colors rallied 5.8 percent intraday on October 22 after the company had signed a Joint Venture Cum Shareholders Agreement with Tennants Textile Colours Limited, London.

The company signed a joint venture for setting up a manufacturing facility for AZO Pigments in India at Dahej, Bhrauch, Gujarat. Asahi Songwon Colors will hold 51 percent of the total equity share capital of the proposed joint venture company, and the rest is held by Tennants Textile.

Buzzing stock: Shares of Asian Paints declined over a percent on BSE on October 22 ahead of the company's July-September quarter earnings. Brokerage firms are expecting the company to report a healthy set of numbers.

Infosys plunges 16% after whistleblower complaints about unethical measures to boost profits

Shares of Infosys fell as much as 16 percent on October 22 after the whistleblower alleged that the company took unethical measures to boost its profits and revenue.

A group of Infosys employees have anonymously written to the US Securities and Exchange Commission (SEC), alleging that the IT major took unethical measures to boost profits and short-term revenue.

Infosys will ensure that the whistleblower’s complaint will be investigated to the ‘fullest extent’, Chairman Nandan Nilekani said in a statement to stock exchanges.

Asian Paints Q2 preview: Healthy revenue, PAT numbers, but softer volume growth likely

The July-September quarter earnings of Asian Paints will be out on October 22 and most brokerage firms are expecting the company to report a healthy set of numbers. Edelweiss Securities anticipates Asian Paints' revenue to increase 10 percent year-on-year (YoY) to Rs 5,101.6 crore against Rs 4,639.1 crore in the corresponding quarter of the previous financial year.

Motilal Oswal Financial Services expects a 13 percent YoY growth revenue at Rs 5,242.1 crore, with nearly 9 percent volume growth in the domestic decorative business.

Kotak Securities models 14 percent YoY growth in domestic sales led by 12 percent volume growth and 2 percent price or mix-led growth.

UltraTech Cement gains 2% post Q2 numbers, approves capex worth Rs 940 cr

Share prices of UltraTech Cement gained over 2 percent intraday on October 22 after the company had reported net profit which was up 2.3 percent at Rs 639 crore.

The profit after tax (PAT) jumped 72 percent year-on-year (YoY) to Rs 639 crore against Rs 371 crore profit in the same quarter last year. The top line of the cement maker grew 5 percent YoY to Rs 9,129 crore from Rs 8,710 crore, it said in a BSE filing.

"The board at its meeting held today approved capex of Rs 940 crore for making premium products with an increase in its grinding capacities in Bihar and West Bengal by 0.6 mtpa (million tonne per annum) each and a new grinding unit of 2.2 million tonne in Odisha," UltraTech said in a statement.

Market update: The Indian market opened in the red but turned flat soon, enduring bouts of volatility amid mixed global cues. Infosys, Tata Motors, HCL Technologies were among the top losers in the Sensex basket, while Yes Bank, TCS and Hindustan Unilever were among the top gainers.

SGX Nifty update: SGX Nifty is indicating a negative start for the Indian equity market. Asian share markets made guarded gains amid cheery chatter about the chance of a Sino-US trade deal. Around 08:20 hours IST, Nifty futures was 56 points, or 0.48 percent, down at 11,642.50 on Singapore Exchange.

Asia update: Asian share markets edged ahead on Tuesday amid cheery chatter about the chance of a Sino-US trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit, reported Reuters.

A holiday in Tokyo kept turnover light and MSCI's broadest index of Asia-Pacific shares outside Japan added a slight 0.13 percent.

Oil update: Global oil prices were near flat as the market fretted about the health of the global economy and the future for energy demand. Brent crude futures inched up 7 cents to $59.03, while US crude added 9 cents to $53.40 a barrel.