MARKET WRAP: Sensex slips 330 pts on Moody's outlook cut; Sun Pharma down 4%

All that happened in markets today.

4:08 PM

MARKET COMMENT | Vinod Nair, Head of Research, Geojit Financial Services

Rating downgrade forced investors to book profit in a volatile market and rupee weakened to three-week low. Given the subdued performance of the equity market during the year, MF inflows fell to four month-low while premium valuation of large and blue-chips is not attracting new funds in the market.

4:03 PM

Sectoral gainers and losers on the NSE

4:03 PM

Top losers and gainers on the S&P BSE Sensex

3:39 PM

CLOSING BELL

The S&P BSE Sensex declined 330 points or 0.81 per cent to end at 40,323.61 while NSE's Nifty50 index ended at 11,908.15, 104 points or 0.86 per cent.

3:14 PM

Market check | Markets decline after Moody's revises outlook to 'negative' on Indian cos

3:10 PM

NEWS ALERT | Moody's revises outlook of TCS, Infosys to negative

•  It has also revied the outlook of HDFC Bank, SBI, HUDCO, IRFC, Hero FinCorp and Exim India to negative; 
•  Bank of India, Canara Bank, Syndicate Bank & Union bank at STABLE

3:08 PM

Allahabad Bank's net loss widens in Q2 to Rs 2,114 cr; stock tumbles 11%

Shares of Allahabad Bank slipped up to 11.2 per cent to Rs 23.95 per share in the afternoon trade on the BSE on Friday after the bank's standalone loss in the Sepember quarter of FY20 (Q2FY20) widened to Rs 2,114 crore. The bank had incurred a loss of Rs 1,823 crore in the corresponding quarter of the previous fiscal. Besides, the bank's asset quality deteriorated in the recently concluded quarter. READ MORE

3:01 PM

MARKET CHECK | Sharp decline in market

2:48 PM

NEWS ALERT | Moody's cuts outlook of 6 Indian financial cos to negative

2:40 PM

GAIL Q2 net profit drops 34% YoY to Rs 1,167.6 cr; stock falls over 4%

GAIL, the state-owned natural gas processing and distribution company, on Friday posted a consolidated net profit of Rs 1,167.58 crore, down 34 per cent year-on-year (YoY) for September quarter of FY19. The company had posted net profit of Rs 1,788.98 crore in the year-ago period.

 

Profit before tax (PBT) for the quarter under review came in at Rs 1,706.47 crore against Rs 2,700.84 in the corresponding quarter of the previous fiscal. READ MORE

2:28 PM

Earnings Alert | Eicher Motors Q2

-- Net profit at Rs 570.5 crore, up 18.5% YoY

-- Revenue at Rs 2,181.9 crore, down 9.2% YoY

-- Tax expense at Rs 28.8 crore vs Rs 260 cr YoY

-- EBITDA at Rs 546.1 crore

-- Other income at Rs 145 crore

2:27 PM

Moody's rating unjustified; experts for aggressive rate cut by RBI

Calling the downgrade in India’s sovereign rating from stable to negative by Moody’s as unexpected and unjustified, the clamour for more aggressive rate cut by the Reserve Bank of India (RBI) to prop-up growth has grown stronger. READ MORE

Moody’s Investors Service

2:26 PM

MSCI Nov rejig: Berger Paints, ICICI Pru Life, DLF included; YES Bank exits

Morgan Stanley Capital International (MSCI) last night announced big semi-annual rebalancing in its global standard index, as per reports. The changes will come into effect from November 26 post market hours, the report added.
 

A total of 78 stocks have witnessed changes in the latest rejig. Berger Paints, Colgate Palmolive, DLF and HDFC AMC are reported to be included in the index. Other stocks in the 'inclusions' list includes ICICI Pru Life, Info Edge, SBI Life Insurance and Siemens READ MORE HERE

The MSCI logo is seen in this June 20, 2017. Photo: Reuters

2:25 PM

Anand Rathi on Greenlam Industries

After a weak Q1, Greenlam reported sturdy results in Q2 with revenue/ EBITDA/PAT up 10%/23%/51% y/y, powered by laminates. Veneer continues to face challenges while utilisation at the newer segments improved (though reporting small losses). We raise our FY21e EPS ~12% chiefly due to higher laminate revenues. Persistent demand weakness in real estate activities and losses in the newer segments (engineered wood-floors and doors), for which investment had already been made, pose downside risks to our 29% PAT CAGR estimate. We retain a Hold rating, with a higher TP of Rs 1,005 (19x FY21e EPS), earlier Rs 851

2:24 PM

Anand Rathi maintains SELL on Wabco India

We believe that Wabco?s OEM business will recover from H2 FY21 as we expect replacement demand to kick in for M&H CVs. This, coupled with growth in the replacement market and exports, we expect strong revenue and earnings growth over FY20-22. However, given expensive valuations, we maintain a Sell at a target price of Rs 5,056

2:23 PM

Edelweiss on HCL Technologies

HCL Tech is well positioned to win large-scale transformation deals owing to its expertise in IMS & ER&D segments and partnerships with top global technology players. The stock is valued at 14.1x FY20E EPS. We also maintain its double overweight in our model IT portfolio (15% versus 8% for NSE IT). Maintain ‘BUY’ with a target price of Rs 1,416. 

2:22 PM

Edelweiss on Sun Pharma

Near-term challenges in specialty eclipse medium-term business outlook as the rampup has been slower even as competition is intensifying. While the stock price seems to be ascribing a fair value to domestic and EM businesses, it overestimates the opportunity in specialty. Hence, we maintain ‘REDUCE/Sector underperformer’ with a target price of Rs 380.

2:21 PM

Phillip Capital on Voltas

Voltas continues to benefit from long-term demand drivers for AC sales, and strengthen its market leadership position – but high levels of competition will cap margins in this segment. We have raised our FY20/21 earnings estimates by 0.3%/2.3% and now see earnings CAGR of 19% over FY20-21. Current valuations are at 35x/30x FY20/21 PE. We value VOLT on SOTP (40x PE for UCP – Rs 508; MEP and EPS segments at 15x FY21 EPS; Voltbek at Rs 12 based on DCF) at Rs 673 (Rs 615 earlier). Since there isn’t much upside, we maintain Neutral

2:11 PM

Earnings Alert | M&M and MVML Q2 result

-- Net profit at Rs 1,355 crore (down 23.8% YoY)

-- Revenue at Rs 10,935 crore

-- EBITDA margin at 14.1%

2:03 PM

Bharat Forge dips 8% on 27% YoY decline in PBT, weaker H2FY20 expectation

Shares of Bharat Forge slipped 8 per cent to Rs 433 on the BSE on Friday after the company's consolidated profit before tax (PBT) declined 27 per cent year on year (YoY) to Rs 251 crore in the September quarter (Q2FY20) due to de-growth in revenue.

 

While total consolidated revenue was down 16.9 per cent YoY to Rs 2,158 crore, EBITDA (earnings before interest, tax, depreciation and amortisation) margin contracted 690bps at 14.7 per cent from 21.6 per cent in the year ago quarter. READ MORE

1:47 PM

Moody's rating downgrade for India: Backward-looking course correction

Moody’s recent downgrade of India’s rating outlook to Negative from Baa2 (stable outlook) can be seen as a course correction, in our view. This course correction seems more of a post facto reaction to a sustained deceleration in growth (real GDP decelerated to a low of 5% in Q1FY20 from 8-9% during 2004-2012), suggesting a backward-looking response than forward-looking guidance. READ MORE  

1:32 PM

Nifty approaches new high

1:30 PM

MARKET UPDATE | Sensex hits record high

1:15 PM

BROKERAGE RADAR | ICICI Securities on Tata Steel

Going forward, after a subdued Q2FY20, we expected the performance of Tata Steel to improve in H2FY20E and further in FY21E. The recent downtick in key raw material coking coal augurs well for the company. Coking coal costs are expected to be lower by US$15/tonne in Q3FY20 compared to Q2FY20 average. Going forward, for standalone operations, we model EBITDA/tonne of Rs 11,750/tonne for FY20E (upward revise from Rs 11,650/tonne) and Rs 13,250/tonne for FY21E (upward revise from Rs 12,500/tonne earlier). We continue to value the company on an SOTP basis and arrive at a target price of Rs 470, maintaining our BUY rating.

1:01 PM

NEWS ALERT | MRF board approves raising up to Rs 102 cr via issuance of NCDs

1:00 PM

Earnings Alert | MRF Q2

-- Consolidated net profit at Rs 229 crore, down 17.7% YoY

-- Cons revenue at Rs 4,007.6 crore, up 1.5% YoY

-- Cons EBITDA at Rs 556 crore, down 1.7% YoY

-- Cons EBITDA margin at 16.3%

12:51 PM

MARKET CHECK | Nifty back above 12,000

12:45 PM

HDFC AMC, Polycab, ICICI Pru hit record highs on inclusion in MSCI index

Polycab India surged 7 per cent to Rs 915, surpassing its previous high recorded on October 30 in the intra-day trade. In the past one month, the stock has rallied 32 per cent against an eight per cent gain in the S&P BSE Sensex. READ MORE  

12:30 PM

Stock market to ignore Moody's downgrade; economy improving: Experts

"There is a clear dichotomy between rating agencies' assessment and stock market performance. While rating agencies always takes into account present situation, the stock markets are always forward-looking and the Indian economy outlook is not that bleak. Therefore, I won't be surprised if market comes back in the green," said G Chokkalingam, founder & managing director of Equinomics. READ MORE  

12:23 PM

NEWS ALERT | Strides announces relaunch of Ranitidine tablets for the US Market: BSE Filing

-- Strides’ Ranitidine Tablets 300 mg were within the acceptable limits for NDMA of 96 nanograms per day or 0.32 ppm.

-- Strides has now completed comprehensive testing of several of its batches available in market and in stock meeting the limits prescribed by the USFDA.

-- Basis the outcome company has decided to relaunch its product with immediate effect.  

Alert: USFDA had tested numerous ranitidine tablets on the market over the past few months

       :US FDA had indicated that if the NDMA levels were above the acceptable limits (96 nanograms per day or 0.32 ppm), companies could recall ranitidine products voluntarily