Closing Bell

Indian equity benchmarks snapped a seven-day winning streak weighed down by selloff in the final hour of trade.

The S&P BSE Sensex index shed nearly 0.1% to 61.716.05. This after the 30-stock index hit a record 62,245.43 in intraday trade. The NSE Nifty 50 Index declined 0.32% to close at 18,418.75. The 50-stock gauge hit a record 18,604.45 in intraday trade.

The broader indexes underperformed their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap declining nearly 2%. Barring S&P BSE Energy, S&P BSE Information Technology, S&P BSE Capital Goods and S&P Teck indexes, all the other 15 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty index falling over 4.5%.

The market breadth was skewed in favour of bears. About 983 stocks advanced, 2,382 declined and 124 remained unchanged.

Sensex, Nifty At Day's Low

IRCTC Shares Down 10%

Ola's COO & CFO To Exit The Company: Moneycontrol Report

  • Ride-hailing app Ola's CFO Swayam Saurabh and COO Gaurav Porwal have left the company last week, reports Moneycontrol, citing unidentified people familiar with the matter.

  • Ola and Porwal denied plans to exit last week and an Ola spokesperson was yet to respond to Moneycontrol's queries on Saurabh.

Inox Wind Enters SPA With Subsidiary To Acquire Resco Global; Shares Decline

Shares of Inox Wind Ltd. fell 8% in intraday trade to Rs 118 apiece after the company entered into a share purchase agreement with its subsidiary Inox Wind Infrastructure Services Ltd. to acquire the entire issued and paid up equity share capital of Resco Global Wind Services Ltd.

After the acquisition, Resco Global shall become a direct wholly owned subsidiary of Inox Wind.

In an exchange filing, Inox Wind said that the acquisition is being done as part of the company strategic business plan and will be completed before October 30, 2021.

HUL Drags NSE Nifty FMCG Index

Network 18 Media Reports Sequential Growth In Net Income & Revenue In Q2; Shares Rise

Shares of Network 18 Media & Investment Ltd. rose over 5% in intraday trade to Rs 88 apiece after the company reported sequential growth in net income and revenue in the quarter-ended September.

HeidelbergCement Q2 Net Income Beats Analyst Estimate

HeidelbergCement India Ltd. reported net income for the second quarter that beat the average analyst estimate.

September quarter results:

  • Net income at Rs 59.56 crore vs estimate of Rs 56.7 crore (Bloomberg consensus); down 13% QoQ

  • Revenue at Rs 576.47 crore vs estimate of Rs 536 crore; up 3.7% QoQ

  • Total costs at Rs 499.42 crore vs Rs 452.6 crore QoQ

  • Other income at Rs 13.86 crore vs Rs 10.51 crore

Commentary & Context

  • Total operating cost per ton increased by 6.7% YoY due to rise in fuel, packaging and diesel costs.

  • Company signed a long-term PPA to source 22 Gigawatt hours per annual of solar power for its Jhansi plant.

Analysts have 14 'buy', five 'hold' and three 'sell' recommendations on the stock.

HUL Reports Net Income In-Line With Analyst Estimates In Q2

Shares of Hindustan Unilever Ltd. rose nearly 3% in intraday trade to Rs 2,732 apiece, before paring gains after the company reported net income for the second quarter that met the average analyst estimate.

September quarter results (Consolidated, QoQ)

  • Net income at Rs 2,185 crore vs estimate of Rs 2,200 crore (Bloomberg consensus, up 4% QoQ

  • Revenue at Rs 12,812 crore vs estimate of Rs 12,660 crore, up 6.8% QoQ

  • Total costs at Rs 10,129 crore vs Rs 9,546 crore QoQ

  • Other income at Rs 53 crore vs Rs 66 crore QoQ

Commentary and Context

  • Company remains cautiously optimistic about demand recovery.

  • Company says large parts of business continue to gain market shares and penetration.

Also Read: HUL Q2 Results: Revenue Up 7% But Margin Contracts As Commodity Costs Rise

Mid-Day Market Update: Sensex, Nifty Near Record; I.T. Shares Lead Advance

India's stock benchmarks advanced to record and overcame intraday volatility, aided by gains in information technology and capital goods stocks

The S&P BSE Sensex rose 0.60% to 62,134.16. The 30-stock index hit a record 62,232.35 in intraday trade. This is the first time Sensex crossed 62,000. The NSE Nifty 50 index also advanced by similar magnitude to 18,563.65. The 50-stock gauge hit a record 18,604.45 in intraday trade.

The broader indices underperformed their larger peers with S&P BSE MidCap little changed and S&P BSE SmallCap indexes gaining 0.2%. Ten of the 19 sectoral indexes compiled by the BSE Ltd. advanced, with S&P BSE Information Technology index gaining 2.36%.

The market breadth was skewed in favour of bears. About 1,337 stocks advanced, 1,913 declined and 137 remained unchanged.

European Markets Open Higher Ahead Of Key Earnings, Macro Data

Swan Energy To Acquire 7,40,000 Shares Of Veritas Polychem At Rs 10 Each

  • Shares of Swan Energy Ltd. rose 2.58% in intraday trade to Rs 136 apiece after the company executed a Share Purchase Agreement with Veritas (India) Ltd. to acquire 7,40,000 equity share of Veritas Polychem Pvt Ltd. at Rs 10 each.

  • Veritas Polychem will become a subsidiary of Swan Energy post the SPA.

MPS To Consider Proposal For Share Buyback On October 27; Shares Rise

Shares of MPS Ltd. rose over 9.4% to Rs 746.6 apiece after the company said it would consider the proposal for buyback of equity shares of the company on October 27. The company will also announce its earnings for the quarter ended September on the same day.

Trading volume was 17.6 times the 30-day average volume for this time of the day. Share price crossed above the 50-day simple moving average, indicating potential upward price momentum

Nippon Life India Asset Management Up 5%; RSI Above 70

Shares of Nippon Life India Asset Management Ltd. rose over 5% in intraday trade, the most in three months, to Rs 474.4 apiece

  • Trading volume was double the 20-day average volume for this time of the day.

  • The relative strength index on the stock was above 70, suggesting it may be overbought.

  • Analysts have 10 'buy', seven 'hold' and one 'sell' recommendations on the stock.

  • Nippon Life India AM trades at 44 times its estimated earnings per share for the coming year.

Mahindra CIE Jumps Over 12%; Extends Post-Earnings Rally For The Second Session

  • Shares of Mahindra CIE Automotive Ltd. rose 12.70% in intraday trade to Rs 297.65 apiece, before paring some of the gains.

  • The automotive component maker's profit jumped in the quarter ended September, prompting analysts to raise price targets.

  • The company reported its earnings post market close on Thursday. Over the last two sessions, shares have risen 12.95%.

  • The relative strength index on the stock was 78, suggesting it may be overbought.

Also Read: Mahindra CIE Shares Climb As Analysts Raise Price Targets After July-September Earnings

Bank Gross NPA Could Rise To 8-9% By March 2022: CRISIL

  • Gross NPAs for banks were at 7.5% as of March 2021

  • With restructured assets expected to be around 2% of total loans, stressed loans for banks could rise to 10-11%

  • Majority of the stress is expected to come from retail and MSME loans

  • Retail stressed assets could rise to 4-5% of loans by the end of this year, compared with 3% in March 2021

  • Stressed assets for MSME segment expected to rise to 17-18% from 14% last fiscal

  • Corporate stressed assets expected to remain within 9-10%

Source: CRISIL Statement

ITC Drags NSE Nifty FMCG Index; HUL, Nestle Rise Ahead Of Earnings

IRCTC Market Cap Above Rs 1 Lakh Crore

Also Read: IRCTC's Market Cap Crosses Rs 1 Lakh Crore

Analysts Bullish On Ultratech Cement After In-Line Q2

Brokerages retained their rating on UltraTech Cement Ltd. after its second quarter earnings met estimates. They cited the demand resilience, higher blended realisations, capacity expansion plans as key reasons their bullishness on the stock.

Also Read: Brokerages Remain Bullish On UltraTech Cement Despite Input Cost Pressure

Moody's Revises India Banking Outlook To Stable From Negative

  • Deterioration of asset quality since the onset of the pandemic has been more moderate than expected despite limited regulatory support for borrowers.

  • Expect asset quality to further improve, leading to decline in credit costs.

  • India's economy will likely continue to recover in the next 12-18 months with GDP growing 9.3% in the fiscal year ending March 2022 and 7.9% in the following year, according to Moody's.

  • Capital will likely remain higher than pre-Covid levels, but further increases will probably be limited as banks use most of retained earnings to support loan growth.

-Moody's Investor Service

Broader Indexes Underperform Their Larger Peers

Alok Industries Declines After Reporting Net Loss Of Rs 84.11 Crore In Q2

Shares of Alok Industries Ltd. shed nearly 11% in intraday trade to Rs 23.8 apiece after the company reported earnings for the September quarter, post market hours Monday.

Alok Industries Q2FY22 (Consolidated, QoQ)

  • Net loss at Rs 84.11 crore vs loss of Rs 97.65 crore

  • Revenue from operations up 50.62% to Rs 1,910.50 crore

  • Total expenses up 45.85% to Rs 1,994.36 crore to Rs 1,367.43 crore

  • Other income at Rs 5.93 crore vs Rs 5.55 crore

Trading volume was 4.2 times the 30-day average volume for this time of the day.

Ramco Cements Declines The Most In Over Three Weeks

Shares of Ramco Cements Ltd. shed nearly 3.5% in intraday trade, the most since September 20, to Rs 986.4 apiece.

  • Trading volume was quadruple the 20-day average for this time of the day.

  • Ramco Cements trades at 27 times its estimated earnings per share for the coming year.

  • Analysts have 19 'buy', eight 'hold' and six 'sell' recommendations on the stock.

  • Ramco Cements will report its earnings for the quarter-ended September on October 25

Metal Stocks Decline; Hindustan Zinc Down 4%

CRED Raises Series E Investment Round Of $251 million.

  • Fund raise values the company at $4.01 billion.

  • Round co-led by existing investors Tiger Global and Falconedge.

  • Two new investors - Marshall Wace and Steadfast - also invested as part of this round.

Source: CRED

Volatility After Another Record Open

Indian Energy Exchange Shares Jump 20% On Bonus Share Plan

Shares of Indian Energy Exchange Ltd. rose 20% in intraday trade to a record Rs 956 apiece, after the company announced that its board will consider issuing free shares to investors.

According to an exchange filing post market hours Monday, the company said the proposal for declaration of bonus issue will be considered on October 21. The earnings for the September quarter is also scheduled to be announced on the same day.

Of the 15 analysts tracking the company, nine maintained 'buy', four maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 46.9%.

The relative strength index on the stock was 90, suggesting it may be overbought. Trading volume on the stock was 4.9 times the 30-day average volume for this time of the day.

All Constituents Of NSE Nifty IT Index Advance

PNB Housing Finance Falls 5% For The Second Consecutive Session; RSI Below 30

Shares of PNB Housing Finance Ltd. hit 5% lower circuit for the second consecutive session to Rs 576.45 apiece.

The company's board decided not to proceed with a preferential issue of shares to investors led by Carlyle after the plan was delayed due to pending legal proceedings, according to exchange filing on Thursday.

Over the last three sessions, shares of PNB Housing Finance shed over 11.2%. The relative strength index on the stock was 28, suggesting it may be oversold. Trading volume was 3 times the 30-day average volume for this time of the day.

Of the 16 analysts tracking the company, six maintained 'buy', five maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8.8%.

TTK Prestige Climbs 20% On Stock Split Plan; RSI Above 70

Shares of TTK Prestige Ltd. rose 20% to a record Rs 10,587.15 apiece, after the company said it will consider the sub-division/split of equity shares of face value of Rs 10 each on October 27, 2021.

The relative strength index on the stock was 80, suggesting it may be overbought. Trading volume on the stock was 136.9 times the 30-day average volume for this time of the day.

Of the 11 analysts tracking the company, eight maintained 'buy', two maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 2.8%.

L&T Infotech Climbs 10% After Reporting Sequential Growth In Revenue, Net Profit In Q2

Shares of Larsen & Toubro Infotech Ltd. jumped 10% to Rs 6,496.4 apiece after the company reported sequential growth in revenue, net profit, EBIT and margin in the September quarter, post market hours Monday.

L&T Infotech Q2FY22 (Consolidated, QoQ)

  • Revenue up 9% at Rs 3,767 crore Vs Rs 3,462.50 crore

  • $ Revenue up 8.3% at $509 million

  • Constant currency revenue growth of 8.9%

  • Net profit up 11% at Rs 551.70 crore Vs Rs 496.80 crore

  • Ebit up 14% at Rs 648.20 crore Vs Rs 568.2 crore

  • Margin at 17.21% Vs 16.41%

  • Declared an interim dividend of Rs 15 per share for FY22

Also Read: L&T Infotech Shares Surge To A Record As Q2 Revenue Beats Estimates; Analysts Cautious On Valuations

Opening Bell: Sensex, Nifty Open At Record; L&T Infotech Jumps 10%

India's stock benchmarks opened higher and hit record highs, aided by gains in information technology, power and capital goods stocks, as investors await key earnings. Sentiment remained positive globally after U.S. markets rebounded as a whipsaw in energy prices eased concerns.

The S&P BSE Sensex rose 0.37% to 61,992.20. The NSE Nifty 50 advanced by a similar magnitude to 18,549.55. Both the indices hit record highs in morning trade.

The broader indexes almost mirrored their broader peers with the S&P BSE MidCap index and the S&P BSE SmallCap rising nearly 0.8%. Barring S&P BSE FMCG index, S&P BSE Consumer Durables index and S&P Oil & Gas index, all the other 16 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Capital Goods index gaining over 1.6%.

The market breadth was skewed in favour of bulls. About 1,729 stocks advanced, 717 declined and 103 remained unchanged.

Dr. Reddy's Laboratories Gets U.S. FDA Approval For Lenalidomide Capsules

  • Dr. Reddy's Laboratories Ltd. and its subsidiaries received the final approval from U.S. FDA for its Abbreviated New Drug Application for Lenalidomide capsules, in 2.5 mg and 20 mg strengths. The company also received tentative approval for 5 mg, 10 mg, 15 mg and 25 mg strengths of the capsules. Lenalidomide capsules is a therapeutic equivalent of Revlimid.

  • The nod comes after Dr. Reddy's settled its litigation with Celgene, the maker of Revlimid in September 2020. Celgene agreed to provide Dr. Reddy's with a license to sell volume-limited amounts of lenalidomide capsules in the U.S. after March 2022.

  • Dr Reddy's is also licensed to sell generic lenalidomide capsules in the U.S. without volume limitation starting from January 31, 2026.

Source: Exchange Filing.

Lenalidomide capsules are used to treat bone marrow cancer and anemia in patients with myelodysplastic syndrome.

Analyst Calls: L&T Infotech, Reliance, Maruti Suzuki, Hatsun Agro

  • L&T Infotech raised to 'buy' at Dalal & Broacha; Price target Rs 7,566

  • Reliance Industries cut to 'neutral' at Nomura; Price target Rs 2,850

  • Maruti Suzuki reinstated 'underweight' at JPMorgan, Price target: Rs 6,600

  • Hatsun Agro Product cut to'hold' at ICICI Securities, Price target: Rs 1,450

Piaggio, Mahindra In Fray To Supply Electric 3-Wheelers: Mint Report

Piaggio India, Mahindra Electric Mobility and Kinetic Green Energy & Power Solutions are among the 21 companies that took part in India's Rs 3,000 crore ($399 million) tender for supplying 1,00,000 electric 3-wheelers, Mint reported, citing two people aware of the development.

  • Convergence Energy Services Ltd., a subsidiary of Energy Efficiency Services Ltd., received bids for seven times the proposed purchase plan.

  • CESL is conducting the technical evaluation of the bids and the price bids are expected to be opened this week.

  • CESL declined to comment on the development: Mint

Policybazaar's Parent Firm Gets SEBI Approval For IPO: ET Report

PB Fintech Ltd., the parent company of online insurance aggregator Policybazaar, has received the approval from SEBI for its IPO plays, Economic Times reported, citing three people with direct knowledge of the development.

PB Fintech is looking at a valuation of nearly $7 billion for the list: ET Report.

There has been no official communication from the regulator: Company spokesperson to ET

SGX Nifty Hints At Gains; SBI, Nestle, HUL In Focus

Asian stocks rose early Tuesday as investors mulled corporate earnings as well as the prospect of tightening monetary policy to restrain inflation. Treasury yields and the dollar edged down.

Shares had modest gains in Japan, Australia and South Korea, while U.S. futures fluctuated after the S&P 500 and Nasdaq 100 gained overnight, aided by optimism about corporate earnings.

India’s SGX Nifty 50 Index futures for Oct. delivery rose 0.4% to 18,568.00, while MSCI Asia Pacific Index gained 0.7%. The NSE Nifty 50 Index added 0.8% Monday to 18,477.05.

The gap between 5- and 30-year Treasury yields has narrowed amid growing expectations that the Federal Reserve may lift policy rates as soon as next year.

The oil rally paused with prices around multiyear highs. A natural-gas shortage is spurring demand for products like fuel oil and diesel for power generation. Elsewhere, Bitcoin traded above $62,000. ETF issuer ProShares is preparing to launch its Bitcoin futures fund on the New York Stock Exchange on Tuesday.

Back home, L&T Infotech, Tata Coffee may react as the companies reported quarterly results after the market closed Monday. Hindustan Unilever, ACC, Nestle India, L&T Technology are among the companies scheduled to report earnings Tuesday. Foreign investors bought net Rs 1,480 crore of stocks on October 14, according to NSDL website.

Also Read: All You Need To Know Going Into Trade On October 19

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