Share Market Today: Sensex, Nifty Extend Gains To Third Straight Week; FPIs Stay Net Buyers
India's stock benchmarks sustained gains for three weeks in a row aided by weekly gains in metals, PSU banks and media stocks.
KEY HIGHLIGHTS
Foreign Investors Net Buyers
Overseas investors remained net buyers for the seventh day in a row on Friday.
As per data from the National Stock Exchange, foreign portfolio investors net bought equities worth Rs 1,436.25 crore.
Similarly, Domestic institutional investors remained net sellers and sold equities worth Rs 548.59 crore.
Institutions have net bought Rs 2,771.15 crore worth of equities so far in November and net sold Rs 28,925.76 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Ends Lower
Yield on the 10-year bond fell 3bps to 7.46% during the session. The 10-year bond yield erased losses to slip 1bps and close at 7.47%.
On Thursday, it closed at 7.48%.
Source: Bloomberg
Indian Rupee Ends Higher Against U.S. Dollar
The Indian rupee ended sharply higher against the U.S. dollar on Friday, rebounding from near-83 levels.
The rupee advanced 0.55% to close at 82.43 on Friday.
Source: Bloomberg
Closing Bell
India's stock benchmarks sustained gains for three weeks in a row aided by weekly gains in metals, PSU banks and media stocks.
Sensex ended 0.19% up at 60, 950.36, while the Nifty 50 closed 0.36% higher at 18,117.15. Twenty eight of the Nifty 50 stocks advance while 22 declined.
The indices traversed through volatility during the later part of the week amid Federal Reserve's 75 basis point rate hike, that triggered recessionary fears.
Adani Enterprises, Hindalco Industries, Bajaj Finserv, JSW Steel, and Adani Ports were the top gainers on Nifty 50 on Friday. Meanwhile, Hero MotoCorp, Dr. Reddy's Laboratories, Cipla, Hindustan Unilever and Divi's Laboratories were the top laggards.
The broader indices outperformed their larger peers with SmallCap gaining 0.41%, while LargeCap almost mirrored their large peers gaining 0.35%, and MidCap underperformed by declining 0.10%.
Fourteen of the 20 sectoral measures complied by BSE advanced with BSE Metal and Commodities gaining over 2%.
The market breadth is skewed in the favour of bulls. About 2,036 stocks rose, 1,410 fell and 139 remained unchanged.
Fusion MicroFinance IPO Fully Subscribed On Final Day
– Fusion MicroFinance IPO fully subscribed as of 3 p.m. on day 3.
– Bidding was led by institutional buyers (5.21 times).
– The offer closes November 4.
Source: BSE
Adani Enterprises Extends Gains To 7%
Aditya Birla Fashion Shares Tank Even As Profit Grows Fivefold
Shares of Aditya Birla Fashion and Retail Ltd. fell the most in a month after the fashion retailer's profit grew fivefold.
Key Highlights (Consolidated, YoY)
Revenue up 50% at Rs 3,074.61 crore vs Rs 2,054.34 crore
Net profit up 5.77 times to Rs 29.42 crore vs Rs 5.09 crore
Ebitda up 27% to Rs 396.71 crore vs Rs 313.53 crore
Margins at 12.9% Vs 15.3%
The scrip fell as much as 5.94%, the most since Oct. 3.
Source: Bloomberg, Exchange filing
GAIL Falls As Q2 Profit Halves
Shares of GAIL (India) Ltd. slipped into losses after the public sector company's net profit more than halved to Rs 1,304.61 crore in the quarter ended September.
Key Highlights (Consolidated, YoY)
Revenue from operations rose 78% to Rs 38,728.86 crore Vs Rs 21,781.87 crore. (Bloomberg estimate: Rs 26,982 crore)
Net Profit fell about 55% to Rs 1,304.61 Vs Rs 2,872.62 (Bloomberg estimate: 1,814.75 crore)
Ebitda at Rs 1,903.79 crore Vs. Rs 3,621.62 crore. (Bloomberg estimate: Rs 2,791.2 crore)
Source: Bloomberg, Exchange filing
Cipla Gains After Posting In-Line Q2 Earnings
Shares of Cipla gained after it's second quarter profit rose, in line with consensus view.
The stock rose 1.04%. Of the 42 analysts tracking the company, 34 maintain 'buy', five suggest 'hold' and three recommend 'sell'. The potential downside of the stock is 2.9%.
Cipla Q2 FY2023-consol figures (YoY)
Revenue up 6% at Rs 5,829 crore Vs Rs 5,520 crore ((Bloomberg estimate: Rs 5,818 crore)
Net profit up 11% to Rs 789 crore Vs Rs 711 crore ((Bloomberg estimate: Rs 783 crore Profit)
EBITDA up 6% to Rs 1,302 crore from Rs 1,226 crore ((Bloomberg estimate: Rs 1,273 crore Profit)
Margins at 22.3% Vs 22.2% ((Bloomberg estimate: 21.9%)
Source: Bloomberg, Exchange filing
GMM Pfaudler Gains Most In Two Months Post Q2
Shares of GMM Pfaudler surged 9.8% intraday, the most since Sept. 6, following its Q2 results.
Total traded quantity is 11.3 times the 30-day average. Out of four analysts, all maintain 'buy'. The return potential of the stock is 23%.
GMM Pfaudler (Consolidated, YoY)
Revenue from operations up 20.5% Rs 780.05 vs Rs 647.24
Ebitda up 47% at Rs 138.25 crore vs Rs 93.75
Net profit up 150% at Rs 96.9 crore vs Rs 38.8 crore
Source: Bloomberg, Exchange filings
European Markets Open Higher
Adani Enterprises Extends Gains For Fifth Day As Q2 Profit Doubles
Shares of Adani Enterprises Ltd. gained as much as 4.1% after the Adani Group-flagship firm reported a 117% rise in net profit in the July-September quarter.
Key Highlights (Consolidated, YoY)
Revenue increased 189% to Rs 38,175.23 crore Vs Rs 13,218.02 crore (Bloomberg estimate: Rs 34,669.8 crore)
Ebitda increased 121% to Rs 2069.86 crore Vs Rs 938.25 crore (Bloomberg estimate: Rs 1,643.8 crore)
Ebitda margin at 5.4% vs 7.1% (Bloomberg estimate: 4.7%)
Net profit increased 117% to Rs 460.94 crore Vs Rs 212.41 crore (Bloomberg estimate: Rs 554.2 crore)
Shares of the company have now risen for the fifth day. This is the longest run of gains since Sept. 2.
Other Adani Group firms also gained after the profit beat by the incubator. Adani Ports and Special Economic Zones Ltd. gained as much as 1.8%, while Adani Total Gas Ltd. and Adani Wilmar Ltd. also advanced.
Source: Bloomberg, Exchange filings
Bikaji Foods IPO Fully Subscribed On Day 2.
– Bikaji Foods IPO fully subscribed as of 12:40 p.m. on day 2.
– Bidding was led by retail investors (1.61 times).
– The offer closes November 7.
Source: BSE
Midday Market Update: Sensex, Nifty Volatile; IT Drags
India's stock benchmarks remained volatile, swinging between gains and losses as gains in commodities and metals were offset by declines in IT amid recession fears post Fed's rate hike.
The Sensex declined 0.10% to 60,773.42. The Nifty 50 inched 0.03% up to 18,058.95.
Today 24 of the Nifty 50 index constituents rose while 26 declined.
Bajaj Finserv, Ultratech Cement, Hindalco Industries, Adani Enterprises, and Tata Motors were the top gainers on Nifty 50. While Hero MotoCorp, Bharat Petroleum Corporation , Infosys, HDFC Life Insurance and Dr Reddy’s Laboratories were the top laggards.
The broader indices outperformed their larger peers with MidCap declining 0.01% and SmallCap gaining 0.39.
Eleven of the 19 sectoral measures complied by BSE advanced.
The market breadth is skewed in the favour of bulls. About 1,932 stocks rose, 1374 fell and 183 remained unchanged.
Primary Schools In Delhi Shut Tomorrow Onwards Over Worsening Air Quality.
– Delhi primary schools ordered shut as air quality dips.
– Delhi government mulling odd-even scheme for private cars.
– Outdoor activities curbed for students of class 5 and above.
Source: Delhi CM Arvind Kejriwal’s press conference
Hero Moto Declines After Q2 Profit Miss
Hero MotoCorp shares declined the most in more than three weeks, after the two-wheeler maker posted a weaker-than-expected Q2 profit.
The stock fell as much as 2.7%- the most since Oct. 10- to trade at Rs 2,575.55 intraday. Total traded volume stood at 1.7 times ther 30-day average.
Of the 50 analysts tracking the company, 32 maintain 'buy', 10 suggest 'hold' and eight recommend 'sell'. The return potential of the stock is 14.9%.
Hero MotoCorp Q2 FY23 (Consolidated YoY)
Revenue increased 7% to Rs 9,158.23 crore Vs Rs 8,538.85 crore. (Bloomberg consensus estimate: Rs 8,779 crore.)
EBITDA flat at Rs 1,086.47 crore.
EBITDA margin at 11.9% Vs 12.7%.
Net profit declined 8% to 688.44 crore Vs Rs 745.72 crore. ( Bloomberg consensus estimate: Rs 771 crore.)
Source: Bloomberg, Exchange filings
Vodafone Idea Falls Most In Three Weeks
Vodafone Idea shares declined the most in three weeks after its second quarter net loss widened.
The stock fell as much as 2.34% intraday- the most since Oct. 13, and it is now trading 1.75% lower.
Total traded volume is 1.7 times the 30-day average. Of the 21 analysts tracking the company, none maintain 'buy', five suggest 'hold' and 16 recommend 'sell'. The potential downside of the stock is 25.1%.
Vodafone Idea Q2 FY23 (Consolidated QoQ)
Revenue increased 2% to Rs 10,614.6 crore Vs Rs 10,410.1 crore (Bloomberg estimate: Rs 10,518.88 crore)
EBITDA declined 5% to Rs 4,097.5 crore Vs Rs 4,328.4 crore (Bloomberg estimate: Rs 4,496.43 crore)
EBITDA margin at 38.6% vs 41.6% (Bloomberg estimate: 44.3%)
Net loss widened to Rs 7,595.5 crore Vs Rs 7,296.7 crore (Bloomberg estimate: Rs 6,974.93 crore)
Source: Bloomberg, Exchange filing
JMC Projects Hits One-Year High On Order Win
Shares of JMC Projects (India) surged to its highest in one year after the engineeering company secured new orders worth Rs 2,277.
The stock rose as much as 5.9% intraday to Rs 116- it highest since October 18, 2021. Total traded quantity is 5.8 times the 30-day average.
The stock is now up 4.24% to Rs 114.2.
Of the three analysts tracking the company, all maintain 'buy'. The potential upside of the stock is 20%.
The order win includes water projects in India of Rs 1,497 crore and B&F orders of Rs 780 crore in India.
Source: Bloomberg, Exchange Filing
Sensex, Nifty Fall
Sensex, Nifty pared early gains and is now trading lower. The Sensex is down 0.24% to 60,691.65, while the Nifty 50 is trading 0.19% lower at 18,018.50.
Lupin Falls After USFDA Issues Warning Letter
Shares of Lupin fell after the drug maker received a warning letter from the U.S. drug regulator for its Tarapur plant.
The shares fell as much as 1.36%. It is now down 0.40%. Of the 43 analysts tracking the company, 12 maintain 'buy', 17 suggest 'hold' and 14 recommend 'sell'. The potential downside of the stock is 4.4%.
The U.S. FDA has issued a warning letter to Lupin for its Tarapur plant after it inspected the plant between March 22 and April 4.
Lupin said it doesn’t believe the warning letter will have an impact on supplies and revenue.
It said it will work with the FDA to resolve the issues.
Source: Exchange filing
Dalmia Bharat Up On Q2 Earnings
Shares of Dalmia Bharat gained after analysts raised target price on the company's improving profitability.
The stock rose as much as 3.34%. It is now trading 3.14% up at Rs 1,705.6. Total traded quantity is 4.1 times the 30-day average.
Dalmia Bharat (Consolidated, YoY)
Revenue up 15% at Rs 2,971 crore vs Rs 2,581 crore
Ebitda down 40% at Rs 377 crore vs Rs 621 crore
Profit after tax down 76% at Rs 47 crore vs Rs 203 crore
Of the 32 analysts tracking the company, 26 maintain 'buy', four suggest 'hold' and two recommend 'sell'. The return potential of the stock is 12%
Morgan Stanley said the valuations are attractive and the stock should do well with improving profitability. It added that the medium term demand visibility is intact despite near term uncertainities. Jefferies added that the volumes grew 13% year on year which is higher than industry.
Source: Bloomberg, Exchange filings, Brokerage notes.
Amara Raja Jumps Most Since March 2020 After Q2 Profit Surges
Shares of Amara Raja Batteries surged in early trading on Friday- gaining the most since March 2020, after its second quarter profit surged.
The stock gained as much as 11.04%. It is now trading at 10.37%. Total traded quantity is 81.8 times the 30-day average.
Amara Raja Batteries Q2 FY23 (Consolidated YoY)
Revenue increased 19% to Rs 2,700.47 crore Vs Rs 2,264.15 crore
EBITDA increased 33% to Rs 358.71 crore Vs Rs 269.11 crore
EBITDA margin at 13.3% Vs 11.9%
Net profit increased 39% to Rs 201.22 crore Vs Rs 144.32 crore (Bloomberg estimate: Rs 111.3 crore)
Dividend of Rs 2.90 per share of face value Re 1.
Of the 19 analysts tracking the company, eight maintain 'buy', eight suggest 'hold' and three recommend 'sell'. The potential downside of the stock is 2.3%.
Source: Bloomberg, Exchange filing
Opening Bell
India's stock benchmarks opened higher, reversing previous day losses amid fears that Federal Reserve's 75 basis point rate hike may trigger a widespread recession.
The Sensex gained 0.17% to 60,942.74 . The Nifty 50 rose 0.2% to 18,088.80. Today 42 of the Nifty 50 index constituents rose while eight declined.
JSW Steel, Hindalco, Eicher Motors, Bajaj Finserv, Tata Steel and Britannia Industries were the top gainers on Nifty 50. While Hero MotoCorp, Infosys, Divi's Laboratories, Infosys, Apollo Hospitals and HCL Technologies were the top laggards.
The broader indices outperformed their larger peers with MidCap and SmallCap gaining 0.15% and 0.42% respectively. Fifteen of the 19 sectoral measures complied by BSE advanced, with BSE Metal gaining over 1%.
The market breadth is skewed in the favour of bulls. About 1,671 stocks rose, 766 fell and 94 remained unchanged.
Trade Setup
Rupee Appreciates Against U.S. Dollar
The Indian currency rose 26 paise against the U.S. dollar to open at 82.63 on Friday.
The rupee had closed at 82.89 on Thursday.
Source: Bloomberg
GLOBAL CUES
U.S. Dollar Index at 112.89
U.S. 10-year bond yield at 4.15% on Thursday
Brent crude down 0.21% to $94.47 per barrel
Nymex crude at $87.99 per barrel
SGX Nifty down 0.12% to 18,092 as of 6:20 a.m.
Bitcoin up 0.23% to $20,285.
Earnings
Akzo Nobel India, Computer Age Management Services, Capri Global Capital, Chemplast Sanmar, Cipla, City Union Bank, Cummins India, EKI Energy Services, Elgi Equipments, Escorts Kubota, Fineotex Chemical, Gillette India, Go Fashion (India), Godrej Agrovet, Harsha Engineers International, Infibeam Avenues, JSW Holdings, Mahindra Logistics, Marico, Minda Corporation, Nava, Paradeep Phosphates, Poly Medicure, Hitachi Energy India, Shipping Corporation Of India, Shivalik Bimetal Controls, Sterlite Technologies, Tatva Chintan Pharma Chem, Tube Investments of India, Titan Company, TTK Prestige, TVS Motor Company, ZF Commercial Vehicle Control Systems India
Stocks To Watch
Wipro: The company appointed Amit Choudhary as chief operating officer. He will manage global business operations, delivery excellence, CIO, CISO, and enterprise risk management functions.
Persistent Systems: The company entered into a partnership with Software AG to develop joint solutions for enterprise clients.
SKF India: The board approved investment of investment of Rs 4.3 crore for 26% in a wind and solar power project SPV in Bengaluru, and additional investment of Rs 1.5 crore for expansion of a captive solar power plant in Pune.
Man Infraconstruction: The board will convene on Nov. 10, 2022 to consider payment of interim dividend for the current fiscal.
Fino Payments Bank: The company appointed Rakesh Bhartia as part-time chairman for a period of three years, awaiting RBI approval.
Cochin Shipyard: The company bagged an international order for two commissioning service operation vessels from a European client to be used for wind farm installations. The client has the option order four more such vessels within one year.
Welspun Corp: The company’s board approved acquisition of entire share capital of newly incorporated Propel Plastic Products for Rs 10,000.
Earnings Post Market Hours
Adani Enterprises Q2 FY23 (Consolidated YoY)
Revenue increased 189% to Rs 38,175.23 crore Vs Rs 13,218.02 crore (Bloomberg estimate: Rs 34,669.8 crore)
Ebitda increased 121% to Rs 2069.86 crore Vs Rs 938.25 crore (Bloomberg estimate: Rs 1,643.8 crore)
Ebitda margin at 5.4% vs 7.1% (Bloomberg estimate: 4.7%)
Net profit increased 117% to Rs 460.94 crore Vs Rs 212.41 crore (Bloomberg estimate: Rs 554.20 crore)
Hero MotoCorp Q2 FY23 (Consolidated YoY)
Revenue increased 7% to Rs 9,158.23 crore Vs Rs 8,538.85 crore.
Ebitda flat at Rs 1,086.47 crore.
Ebitda margin at 11.9% Vs 12.7%.
Net profit declined 8% to 688.44 crore Vs Rs 745.72 crore
Vodafone Idea Q2 FY23 (Consolidated QoQ)
Revenue increased 2% to Rs 10,614.6 crore Vs Rs 10,410.1 crore (Bloomberg estimate: Rs 10,518.88 crore)
Ebitda declined 5% to Rs 4,097.5 crore Vs Rs 4,328.4 crore (Bloomberg estimate: Rs 4,496.43 crore)
Ebitda margin at 38.6% vs 41.6% (Bloomberg estimate: 44.3%)
Net loss widened to Rs 7,595.5 crore Vs Rs 7,296.7 crore (Bloomberg estimate: Rs 6,974.93 crore)
Hindustan Petroleum Q2 FY23 (Consolidated YoY)
Revenue increased 30% to Rs 1.14 lakh crore Vs Rs 87,364.27 crore
Operating loss of Rs 326.86 crore Vs operating profit of Rs 2,482.24 crore
Operating margin of -0.3% Vs 3%
Loss of Rs 2,475.69 crore vs profit of Rs 1,918.89 crore
Sanofi India Q3 FY23 (YoY)
Revenue declined 8% to Rs 691.9 crore Vs Rs 754.5 crore (Bloomberg estimate: Rs 729.7 crore)
Ebitda declined 9% to Rs 181.9 crore Vs Rs 198.8 crore (Bloomberg estimate: Rs 166.43 crore)
Ebitda margin unchanged at 26.3% (Bloomberg estimate: 22.8%)
Net profit declined 75% to Rs 130.9 crore Vs Rs 529.8 crore (Bloomberg estimate: Rs 123.37 crore)
Rain Industries Q3 FY23 (Consolidated QoQ)
Revenue increased 1% to Rs 5,577.1 crore Vs Rs 5,540.55 crore
Ebitda declined 32% to Rs 864.45 crore Vs Rs 1,279.11 crore
Ebitda margin at 15.5% Vs 23.1%
Net profit declined 40% to Rs 403.22 crore Vs Rs 668.46 crore
Ajanta Pharma Q2 FY23 (Consolidated YoY)
Revenue increased 6% to Rs 938.1 crore Vs Rs 884.8 crore (Bloomberg estimate: Rs 930.13 crore)
Ebitda declined 25% to Rs 196.34 crore Vs Rs 262.82 crore (Bloomberg estimate: Rs 239.77 crore)
Ebitda margin at 20.9% Vs 29.7% (Bloomberg estimate: 25.8%)
Net profit declined 20% to Rs 156.6 crore Vs Rs 195.94 crore (Bloomberg estimate: Rs 170.53 crore)
Dividend of Rs 7 apiece on face value of Rs 2 each
Blue Star Q2 FY23 (Consolidated YoY)
Revenue increased 27% to Rs 1,576.24 crore Vs Rs 1,239.74 crore (Bloomberg estimate: Rs 1,412.64 crore)
Ebitda increased 21% to Rs 85.59 crore Vs Rs 70.7 crore (Bloomberg estimate: Rs 80.69 crore)
Ebitda margin at 5.4% Vs 5.7% (Bloomberg estimate: 5.7%)
Net profit increased 36% to Rs 42.55 crore Vs Rs 31.36 crore (Bloomberg estimate: Rs 37.95 crore)
SKF India Q2 FY23 (Consolidated YoY)
Revenue increased 12% to Rs 1,078.26 crore Vs Rs 966.37 crore (Bloomberg estimate: Rs 1,115.80 crore)
Ebitda increased 34% to Rs 214.56 crore Vs Rs 159.75 crore (Bloomberg estimate: Rs 195.30 crore)
Ebitda margin at 19.9% Vs 16.5% (Bloomberg estimate: 17.5%)
Net profit increased 33% to Rs 155.82 crore Vs Rs 117.56 crore (Bloomberg estimate: Rs 139.50 crore)
Amara Raja Batteries Q2 FY23 (Consolidated YoY)
Revenue increased 19% to Rs 2,700.47 crore Vs Rs 2,264.15 crore
Ebitda increased 33% to Rs 358.71 crore Vs Rs 269.11 crore
Ebitda margin at 13.3% Vs 11.9%
Net profit increased 39% to Rs 201.22 crore Vs Rs 144.32 crore (Bloomberg estimate: Rs 111.3 crore)
Dividend of Rs 2.90 per share of face value Re 1.
Siyaram Silk Mills Q2 FY23 (Consolidated YoY)
Revenue increased 32% to Rs 635.76 crore Vs Rs 480.37 crore
Ebitda increased 41% to Rs 119.4 crore Vs Rs 84.63 crore
Ebitda margin at 18.8% Vs 17.6%
Net profit increased 52% to Rs 80.13 crore Vs Rs 52.89 crore
Dividend of Rs 4 per share for each share of face value Rs 2
Sensex, Nifty Set To Open Lower; Adani Enterprises, Hero Moto, Wipro In Focus
Equities edged lower in Australia while Japanese shares fell more heavily as investors played catchup after Thursday’s holiday. US futures inched down after the S&P 500 saw its fourth straight decline.
Bitcoin rose 0.3% to $20,296.37, while West Texas Intermediate crude fell 0.3% to $87.90 a barrel.
India's benchmark indices closed in the red for the second day in a row on Thursday, with information technology and utility stocks playing spoilsport.
The rupee waned against the greenback after the U.S. Federal Reserve hiked policy rates by another 75 basis points.
At 6:30 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- fell 0.12% to 18,092.