Share Market Today: Sensex, Nifty End Lower Dragged By FMCG, Power, Capital Goods Stocks; FPIs Stay Net Buyers

Overseas investors remained net buyers for the twelfth day in a row on Monday.

As per data from the National Stock Exchange, foreign portfolio investors net bought equities worth Rs 1,089.41crore.

Similarly, Domestic institutional investors stayed net buyers and bought equities worth Rs 47.18 crore.

Institutions have net bought Rs 7,981.46 crore worth of equities so far in November and net sold Rs 23,715.45 crore worth of Indian equities till date in 2022.

Yield on the 10-year bond fell 2 bps to close at 7.28%

The rupee witnessed heavy volatility and depreciated 45 paise to RS. 81.27 against the US dollar in line with a muted trend in domestic equities.

The local currency opened at 80.55, appreciating 0.34%, or 27 paise.

On Friday, the rupee appreciated by 62 paise to close at 80.78 against the dollar.

"The rupee depreciated on recovery in dollar and weak domestic markets. However, Rupee opened higher on upbeat macroeconomic data," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

India's industrial production expanded by 3.1% in September, boosted by manufacturing, mining and power sectors, according to official data released on Friday.

"Overall weakness in the Dollar amid rising expectations of the not-so-aggressive Federal Reserve may also support the Rupee at lower levels. Sustained FII inflows may also support Rupee. However, higher crude oil prices may cap sharp upside," Choudhary added.

On the domestic macroeconomic front, the wholesale price-based inflation declined to a 19-month low of 8.39% in October, on easing prices of fuel and manufactured items.

The rupee had hit a record low of 83.29 on Oct. 20.

(Inputs from PTI)

Indian stock benchmarks closed lower on Monday, dragged FMCG, power, utilities, capital goods stocks

Sensex declined about 0.28% at 61,624.15. Nifty 50 declined 0.11% at 18,329.15.Today 26 of Nifty 50 stocks rose while 24 declined.

Hindalco Industries, Apollo Hospitals Enterprise, Tata Motors, Grasim Industries, Power Grid Corporation were the top gainers on Nifty 50.

While Dr. Reddy's Laboratories, Coal India, ITC, Hindustan Unilever and State Bank of India were the top laggards.

The broader indices outperformed their larger peers with MidCap gaining 0,05 % while SmallCap gaining 0.25%.

Eleven out of 20 the sectoral measures complied by the BSE declined with BSE FMCG losing over 1%.

The market breadth is skewed in the favour of bears. About 1720 stocks rose, 1895 fell and 154 remained unchanged.

Shares of Grasim Industries rose over 2%, after company announced second-quarter results.

The total traded quantity is 2.7 times the 30-day average.

Of the 10 analysts tracking the company, nine maintain a 'buy', one suggest a 'hold' The return potential of the stock implies a upside of 3.6%.

Grasim (Consolidated, YoY)

• Revenue at Rs 27,485.5 crore vs Rs 22,567.5 crore

• Ebitda at Rs 4,591.2 crore vs Rs 4,896 crore

• Net profit at Rs 1,509.2 crore vs Rs 2,032.2 crore

• Margins at 16.7% vs 21.6%

Source: Bloomberg, Exchange Filings

Shares of Bharat Forge declined 4.25%, after company reported profits after tax down by 48% at Rs. 141.6 crore.

The total traded quantity is 1.6 times the 30-day average.

Of the 31 analysts tracking the company, 23 maintain a 'buy', four suggest a 'hold' and five recommend a 'sell'. The return potential of the stock implies a downside of 0.6%.

Bharat Forge Q2FY23 (Cons YoY)

• Revenues up 29% at Rs. 3,076.4 crore vs 2,385.6 crore (Bloomberg Est Rs. 2,894.4 crore)

• EBIDTA down 15% at Rs. 432 crore vs 509.9 crore (Bloomberg Est Rs. 497.9 crore)

• EBIDTA margin at 14% vs 21.4% (Bloomberg Est 17.2%)

• PAT down 48% at Rs. 141.6 crore vs 270.5 crore (Bloomberg Est Rs. 256.8 crore)

Source: Bloomberg, Exchange filing

European stocks opened on a positive note on the back of a boost from key U.S. inflation figures last week.

Indian stock benchmarks declined, dragged by consumer goods, FMCG, telecommunication and capital goods.

Sensex declined about 0.29% at 61,626.90. Nifty 50 declined 0.16% at 18,323.15.Today 25 of Nifty 50 stocks rose while 25 declined.

Hindalco Industries, Tata Motors, Grasim Industries, Apollo Hospitals and Tata Steel were the top gainers on Nifty 50.

While Dr. Reddy's Laboratories, ITC, Coal India, Hindustan Unilever and ICICI Bank were the top laggards.

The broader indices outperform their larger peers with MidCap losing 0.13% while SmallCap gaining 0.21%.

Twelve of 20 the sectoral measures complied of BSE declined with BSE FMCG, telecommunication, consumer goods losing over 0.60%.

The market breadth is skewed in the favour of bears. About 1,702 stocks rose, 1797 fell and 177 remained unchanged.

Shares of Dr. Reddy's Laboratories declined 4.05%, after Credit Suisse downgraded the rating to underperform, at a price target of Rs 4,000

The total traded quantity is 1.7 times the 30-day average.

Of the 42 analysts tracking the company, 34 maintain a 'buy', six suggest a 'hold' and two recommend a 'sell'. The return potential of the stock implies a upside of 14.3%.

The fall comes despite Dr. Reddy’s Laboratories Ltd.’s second quarter after-tax profit rose beating estimates as its input costs fell over the previous year.

Dr. Reddy’s Q2 FY23 Highlights (YoY)

• Revenue rose 10% to Rs 6,332 crore, compared to an estimate of Rs 5,805-crore.

• Ebitda was up 40% at Rs 1,901 crore against the Rs 1,239-crore forecast.

• Margin was at 30% against 23.5% a year ago, and an estimate of 21.3%.

Source: Bloomberg, Exchange Filings

WPI inflations falls to 8.39% in October 2022 compared to 10.7% in September.

Source: Office of the Economic Adviser

Shares of Hindustan Zinc rose over 4%, after company announced considering the proposal for interim dividend.

The total traded quantity is 7.3 times the 30-day average.ANR

Of the 15 analysts tracking the company, 3 maintain a 'buy', six suggest a 'hold' and seven recommend a 'sell'. The return potential of the stock implies a downside of 2.8%.

The Board of Directors will convene on Nov. 16 to consider the proposal for an interim dividend for the current fiscal. The record date for the dividend, if declared, will be Nov. 24.

Source: Bloomberg, Exchange Filings

Shares of Meghmani Organics rose over 2%, after company announced signing agreemenent with Global Agrochemical Company for supply of specific agrochemical products for a period of 5 years

Total agreement value is Rs 812 crore (approx), according to the exchange filings

Source: Exchange Filings

Shares of Bharat Heavy Electricals fell 6.18%, after company reported its second quarter results.

The total traded quantity is 2.1 times the 30-day average.

Of the 21 analysts tracking the company, 3 maintain a 'buy', three suggest a 'hold' and fifteen recommend a 'sell'. The return potential of the stock implies a downside of 26.6%.

Bharat Heavy Electricals Q2 FY23 (Consolidated, YoY)

• Revenue up 2% at Rs 5,203 crore Vs Rs 5,112 crore

• Ebitda loss of Rs 243.87 crore Vs Rs 29.18 crore

• Net profit of Rs 10.29 crore Vs Rs net loss of Rs 67.49 crore

Source: Bloomberg, Exchange Filings

Shares of Astral declined 2.58%, after company reported 50% fall in net profit at Rs. 70.4 crore.

Of the 23 analysts tracking the company, 8 maintain a 'buy', nine suggest a 'hold' and six recommend a 'sell'. The return potential is 4.3%.

Astral Q2 FY23 (Consolidated, YoY)

• Revenue fell 2% at Rs 1,172 crore Vs Rs 1,200 crore

• Ebitda fell 32% at Rs 144 crore Vs Rs 211.5 crore

• Ebitda margin 12% Vs 18%

• Net profit down 50% at Rs 70.4 crore Vs Rs 141.2

Source: Bloomberg, Exchange Filings

Shares of Fortis Healthcare rose 5.29%, after company reported 91% growth in net profit at Rs 204 crore.

The total traded quantity is 6.5 times the 30-day average.

Of the 11 analysts tracking the company, all maintain a 'buy' The return potential is 7.5%.

Fortis Healthcare Q2 FY23 (Consolidated, YoY)

• Revenue up 10% at Rs 1,607 crore Vs Rs 1,463 crore (Bloomberg estimate: Rs 1,587 crore)

• Ebitda up 7% to Rs 303 crore from Rs 284 crore (Bloomberg estimate: Rs 284 crore)

• Ebitda margins at 18.8% Vs 19.4% (Bloomberg estimate: 17.9%)

• Net profit up 91% to Rs 204 crore Vs Rs 107 crore (Bloomberg estimate: Rs 125 crore)

Source: Exchange Filings

Shares of Life Insurance Corporation of India gained 5.77%, the most in a day after its second-quarter profit jumped tenfold.

The total traded quantity is 15.4 times the 30-day average.

Of the 12 analysts tracking the company, 10 maintain a 'buy', two suggest a 'hold' . The return potential is 26.6%.

LIC Q2 FY23 Highlights (Standalone, YoY)

• Revenue rose by 19% to Rs 2.2 lakh crore.

• The management expense ratio was 18.25%, as against 14.92%.

• The 13th and 61st month persistency ratios—or customer retention—improved to 70.52% from 68.81% and to 55.83% from 53.88%, respectively.

• The solvency ratio, which measures the extent to which assets cover commitments for future liabilities, rose to 188% from 183%. It’s above the minimum requirement of 150%

• The net premium of the company increased by 27% year-on-year to Rs 1.3 lakh crore.

Source: Bloomberg, Exchange Filings

Shares of Aurobindo Pharma fell 3.29% after its second quarter profit missed consensus estimates.

The Hyderabad-based bulk and generic drugmaker’s net profit declined 41% year-on-year to Rs 409 crore in the quarter-ended September, according to its exchange filing.

The total traded quantity is 7.9 times the 30-day average. Of the 32 analysts tracking the company, 26 maintain a 'buy', four suggest a 'hold' and two recommend a 'sell'. The return potential is 42.2%.

Aurobindo Pharma Q2 Highlights (YoY)

• Revenue was down 3% to Rs 5,739 crore against an estimate of Rs 6,257 crore.

• Ebitda was down 30% at Rs 837 crore against the Rs 1,026-crore forecast.

• Margin stood at 14.6% against 20%. That compares to the forecast of 16.4%.

Source: Bloomberg, Exchange Filings

Shares of Zee Entertainment Enterprises declined 2.37%, the fall comes despite company reporting 6% growth in net profit at Rs 112.89.

Of the 24 analysts tracking the company, 20 maintain a 'buy', two suggest a 'hold' and two recommend a 'sell'. The return potential is 18.8%.

Zee Entertainment Enterprises Q2 FY23 (Consolidated, QoQ)

• Revenue up 10% at Rs 2,028 crore Vs Rs 1,846 crore (Bloomberg estimate: Rs 1,973.23 crore)

• Ebitda up 19% at Rs 297.29 crore Vs Rs 250.66 crore (Bloomberg estimate: 285.41 crore)

• Ebitda margin 15% Vs 14% (Bloomberg estimate: 14.5%)

• Net profit up 6% at Rs 112.89 crore Vs Rs 106.6 crore (Bloomberg estimate: 164.30 crore)

Source: Bloomberg, Exchange Filings

Indian stock benchmarks opened flat on the back of broad-based gains amid positive Asia trade.

Sensex declined about 0.09% to open at 61,741.76. Nifty 50 rose by 0.06% to open at 18,382.65.

Today 34 of Nifty 50 stocks rose while 14 declined, and 2 remained unchanged. Hindalco Industries, Power Grid Corporation, Mahindra & Mahindra, Tata Steel and JSW Steel were the top gainers on Nifty 50.

While Dr Reddy's Laboratories, Divi's Laboratories, SBI, Sun Pharmaceuticals Industries and ICICI Bank were the top laggards

The broader indices underperform their larger peers with MidCap losing 0.29%, while SmallCap almost mirrored its large peers by declining 0.07%.

Eight of 19 the sectoral measures complied of BSE advanced with BSE Metal, gaining over 2%.

The market breadth is skewed in the favour of bulls. About 1,539 stocks rose, 1281 fell and 142 remained unchanged.

Yield on the 10-year bond rose 1 bps to 7.31% in early trade.

Source: Bloomberg

Indian currency appreciated by 27 paise to 80.55 at the open against the greenback on Monday. It closed at 80.82 on Friday.

Source: Bloomberg

• U.S. Dollar Index at 106.74

• U.S. 10-year bond yield at 3.89% on Friday

• Brent crude up 0.71% to $96.67 per barrel

• Nymex crude at $89.60 per barrel

• SGX Nifty up 0.28% to 18,488 as of 6:15 a.m.

• Bitcoin fell 0.82% to $16,231.

• Apollo Tyres

• Oil and Natural Gas Corporation

• NMDC

• CESC

• Bharat Forge

• Balkrishna Industries

• Biocon

• Aarti Industries

• Varroc Engineering

• Abbott India

• GMR Airports Infrastructure

• AIA Engineering

• SpiceJet

• Ahluwalia Contracts (India)

• Greaves Cotton

• Suprajit Engineering

• Jyothy Labs

• Star Cement

• FDC

• Kaveri Seed Company

• JM Financial

• Arvind Fashions

• Dilip Builidcon

For the full list of earnings to watch, click here.

• NDTV: The open offer for the company will begin from Nov. 22 with VCPL, AMG Media Networks and Adani Enterprises as acquirers. Meanwhile, the company and its subsidiary, NDTV Networks, have put on hold the proposed sale of their 20% shareholding of Astro Awani Network, a Malaysia-based media company.

• Life Insurance Corporation of India: The insurer increased its shareholding in Welspun Corp to 7.25% from 5.24%.

• Hindustan Zinc: The board will convene on Nov. 16 to consider the proposal for an interim dividend for the current fiscal. The record date for the dividend, if declared, will be Nov. 24.

• HEG: The company will start manufacturing of graphite anodes for lithium-ion cells as well as allied and ancillary products through incorporation of a subsidiary company.

• Bharat Electronics: The company confirmed that it has signed an MoU with Aerosense Technologies for development and marketing of Drones and soft kill aerial anti drone.

• Macrotech Developers: The company will absorb five wholly owned subsidiaries—Bellissimo Constructions and Developers, Homescapes Constructions, Primebuild Developers and Farms, Palava Institute of Advanced Skill Training, and Center for Urban Innovation.

Glaxosmithkline Pharmaceuticals Q2 FY23 (Consolidated, YoY)

• Revenue down 2% at Rs 917 crore Vs Rs 934 crore (Bloomberg estimate: Rs 987 crore)

• Ebitda at par at Rs 257 crore Vs Rs 256 crore (Bloomberg estimate: Rs 240 crore)

• Margins at 28% Vs 27.4% (Bloomberg estimate: 24.3%)

• Net profit down 5% to Rs 193 crore Vs Rs 204 crore (Bloomberg estimate: Rs 181 crore)

Zee Entertainment Enterprises Q2 FY23 (Consolidated, QoQ)

• Revenue up 10% at Rs 2,028 crore Vs Rs 1,846 crore (Bloomberg estimate: Rs 1,973.23 crore)

• Ebitda up 19% at Rs 297.29 crore Vs Rs 250.66 crore (Bloomberg estimate: 285.41 crore)

• Ebitda margin 15% Vs 14% (Bloomberg estimate: 14.5%)

• Net profit up 6% at Rs 112.89 crore Vs Rs 106.6 crore (Bloomberg estimate: 164.30 crore)

Bharat Heavy Electricals Q2 FY23 (Consolidated, YoY)

• Revenue up 2% at Rs 5,203 crore Vs Rs 5,112 crore

• Ebitda loss of Rs 243.87 crore Vs Rs 29.18 crore

• Net profit of Rs 10.29 crore Vs Rs net loss of Rs 67.49 crore

Glenmark Pharmaceuticals Q2 FY23 (Consolidated, YoY)

• Revenue up 7% at Rs 3,375 crore Vs Rs 3,147 crore (Bloomberg estimate: Rs 3,060 crore)

• Ebitda up 5% to Rs 622 crore from Rs 590 crore (Bloomberg estimate: Rs 541 crore)

• Ebitda margins at 18.4% Vs 18.8% (Bloomberg estimate: 17.7%)

• Net profit up 1% to Rs 260 crore Vs Rs 258 crore (Bloomberg estimate: Rs 212 crore)

JB Chemicals and Pharmaceuticals Q2 FY23 (Consolidated, YoY)

• Revenue up 37% at Rs 809 crore Vs Rs 593 crore (Bloomberg estimate: Rs 778 crore)

• Net profit up 14% to Rs 111 crore Vs Rs 98 crore (Bloomberg estimate: Rs 107 crore)

• Ebitda up 46% to Rs 185 crore from Rs 127 crore (Bloomberg estimate: Rs 171 crore)

• Ebitda margins at 22.8% Vs 21.4% (Bloomberg estimate: 22%)

Thyrocare Technologies Q2 FY23 (Consolidated, YoY)

• Revenue down 23% at Rs 135 crore Vs Rs 176 crore (Bloomberg estimate: Rs 134 crore)

• Net profit down 80% to Rs 15 crore Vs Rs 78 crore (Bloomberg estimate: Rs 23 crore)

• Ebitda down 65% to Rs 32 crore from Rs 89 crore (Bloomberg estimate: Rs 38 crore)

• Ebitda margins at 23.4% Vs 50.7% (Bloomberg estimate: 28%)

Thermax Q2 FY23 (Consolidated, YoY)

• Revenue up 41% at Rs 2,075 crore Vs Rs 1,469 crore

• Ebitda up 28% at Rs 140.55 crore Vs Rs 110.01 crore

• Ebitda margin 7% Vs 7.5%

• Net profit of Rs 109.14 crore Vs net loss of Rs 67.49 crore

Delhivery Q2 FY23 (Consolidated, YoY)

• Revenue up 20% at Rs 1,796 crore Vs Rs 1,498 crore

• Ebitda loss at Rs 137.75 crore Vs Rs 518.05 crore

• Net loss fell at Rs 254.1 crore Vs Rs 635.04 crore

Life Insurance Corporation of India Q2 FY23 (Standalone, YoY)

• Revenue rose 19% at Rs 2.2 lakh crore Vs Rs 1.86 lakh crore

• Net profit up 10x at Rs 15,952 crore Vs Rs 1,434 crore

• Solvency ratio 188% Vs 183%

• Management expense ratio 18.25% Vs 14.92%

Fortis Healthcare Q2 FY23 (Consolidated, YoY)

• Revenue up 10% at Rs 1,607 crore Vs Rs 1,463 crore (Bloomberg estimate: Rs 1,587 crore)

• Ebitda up 7% to Rs 303 crore from Rs 284 crore (Bloomberg estimate: Rs 284 crore)

• Ebitda margins at 18.8% Vs 19.4% (Bloomberg estimate: 17.9%)

• Net profit up 91% to Rs 204 crore Vs Rs 107 crore (Bloomberg estimate: Rs 125 crore)

Astral Q2 FY23 (Consolidated, YoY)

• Revenue fell 2% at Rs 1,172 crore Vs Rs 1,200 crore

• Ebitda fell 32% at Rs 144 crore Vs Rs 211.5 crore

• Ebitda margin 12% Vs 18%

• Net profit down 50% at Rs 70.4 crore Vs Rs 141.2

Asian equities advanced on Monday with support from the biggest weekly gain in U.S. stocks since June and China’s policy shifts on Covid and property.

A gauge of the region’s shares headed for the highest in more than two months, led by increases in Hong Kong and mainland China. Contracts for the S&P 500 and Nasdaq 100 declined as the dollar climbed.

Japanese stocks fell amid a slump of more than 10% in SoftBank Group Corp. after the company failed to announce a widely-expected stock buyback. 

The S&P 500 closed near session highs in the biggest weekly gain since June. The dollar slumped more than 1% on Friday in the biggest weekly drop since March 2020, causing the rupee to register strong gains.

Cryptocurrencies resumed a selloff amid FTX’s deepening woes with Sam Bankman-Fried’s crypto empire filing for bankruptcy.

Oil advanced for a third session as investors weighed the outlook for Chinese demand as the market tightens heading into winter.

At 8:15 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- was little changed at 18,428.

(With inputs from Bloomberg)