Barometers trade sideways; breadth remains weak

Equity indices were trading sideways with a negative bias in mid-morning trade. The Nifty faced resistance at 11,700 mark. Global cues were mixed amid fears that fresh lockdowns in Europe could derail a recovery from the Covid-19 pandemic.

At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 108.85 points or 0.27% at 39,813.44. The Nifty 50 index fell 37 points or 0.32% at 11,692.65.

The S&P BSE Mid-Cap index was off 0.11% while the S&P BSE Small-Cap index was down 0.58%.

The market breadth was weak. On the BSE, 791 shares rose and 1410 shares fell. A total of 152 shares were unchanged.

COVID-19 Update:

India reported 6,03,687 active cases of COVID-19 infection and 120,527 deaths while 73,15,989 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. Total COVID-19 confirmed cases worldwide stood at 44,401,826 with 1,173,292 deaths, according to data from Johns Hopkins University.

Buzzing Index:

The Nifty Auto index fell 1% to 7845.25, declining for second trading session.

Tata Motors (down 3%), Eicher Motors (down 1.35%), Bajaj Auto (down 1.26%), Ashok Leyland (down 1.25%), Mahindra & Mahindra (down 1%), Maruti Suzuki (down 0.74%) and TVS Motor Company (down 0.54%) were top losers in automobile segment.

Hero MotoCorp fell 1.28%. The two-wheeler major's standalone net profit jumped 9% to Rs 953.45 crore on 23.7% increase in net sales to Rs 9,367.34 crore in Q2 September 2020 over Q2 September 2019. Volumes grew 7.7% to 18.22 lakh units sold in Q2 FY21 over Q2 FY20. EBITDA jumped 16.80% to Rs 1286 crore in Q2 September 2020 as against Rs 1101 crore in Q2 September 2019. EBITDA margin stood at 13.7% in Q2 FY21, higher than 3.6% in Q1 FY21 and lower than 14.5% in Q2 FY20.

Stocks in Spotlight:

Pidilite Industries gained 4.41% after the company signed a definitive agreement with Huntsman Group (USA) for acquiring a 100% stake in one of its subsidiaries in India, Huntsman Advanced Materials Solutions (HAMSPL), for Rs 2,100 crore. HAMSPL manufactures and sells adhesives, sealants and other products under brands such as Araldite, Araldite Karpenter and Araseal in India.

Housing and Urban Development Corporation (HUDCO) was unchanged at Rs 31.75 on BSE. HUDCO said it has achieved loan sanctions of Rs 2,628.23 crore and loan releases of Rs 3,411.79 crore, as on 30 September 2020, for the financial year 2020-21.

PI Industries rose 1.8% after the company's net profit surged 77% to Rs 217.60 crore on 27.6% increase in net sales to Rs 1,157.70 crore in Q2 FY21 over Q2 FY20. EBITDA rose by 45% to Rs 280 Q2 September 2020 from Rs 193 crore in Q2 September 2019. EBITDA margin stood at 24% as on 30 September 2020 as against 21% as on 30 September 2019. Profit before tax in the second quarter stood at Rs 262.70 crore, up by 55.2% from Rs 169.30 crore in the same period last year. Current tax expense declined 13.5% year-on-year (YoY) to Rs 36.60 crore during the quarter.

Global Markets:

Asian stocks were mixed on Thursday following an overnight plunge on Wall Street as coronavirus cases continued to surge in the West.

Japan's retail sales fell 8.7% in September as compared to a year earlier, according to the Ministry of Economy, Trade and Industry's Preliminary Report on the Current Survey of Commerce released Thursday.

Surging coronavirus cases in the United States and Europe were a growing concern as French and German leaders announced new lockdown measures to combat rising infections. In the US, the state of Illinois has ordered Chicago to shut down indoor dining. In Europe, German officials agreed to a four-week partial lockdown, while the French government imposed new nationwide restrictions until December 1. Worsening matters for investor enthusiasm were dwindling hopes for any imminent US economic relief package with a presidential election less than a week away.

In US, stocks tumbled on Wednesday, amid concerns over the latest increase in coronavirus infections and its potential impact on the global economy. The Dow Jones Industrial Average fell 943.24 points, or 3.43%, to 26,519.95, the S&P 500 lost 119.65 points, or 3.53%, to 3,271.03 and the Nasdaq Composite dropped 426.48 points, or 3.73%, to 11,004.87.

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