Benchmarks come off day's low

The Sensex and the Nifty were trading lower in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, dropped 224.27 points or 0.52% at 43,053.38. The Nifty 50 index slipped 31.70 points or 0.25% at 12,599.40. Both the indices trimmed losses after hitting fresh intraday low.

Reliance Industries (down 3.50%), HDFC Bank (down 1.48%) and ICICI Bank (down 1.79%) dragged.

In the broader market, the S&P BSE Mid-Cap index rose 0.22%. The S&P BSE Small-Cap index fell 0.15%.

Sellers outnumbered buyers. On the BSE, 1,144 shares rose and 1,434 shares fell. A total of 193 shares were unchanged. In Nifty 50 index, 37 stocks advanced while 13 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 5,627.32 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,309.19 crore in the Indian equity market on 10 November 2020, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 5,14,62,791 with 12,72,146 deaths. India reported 4,94,657 active cases of COVID-19 infection and 1,27,571 deaths while 80,13,783 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Bihar Election Result:

The National Democratic Alliance (NDA) is all set to form the next government in Bihar after defeating the Tejashwi Yadav-led Mahagathbandhan in the assembly elections. The NDA won 125 seats, clearing the majority mark in the 243-member Assembly. The Mahagathbandhan or the Grand Alliance won 110 seats.

Gainers & Losers:

Tata Steel (up 4.91%), Dr Reddy's Laboratories (up 3.67%), Hindalco Industries (up 3.17%), Cipla (up 3.11%) and Hero MotoCorp (up 3.11%) advanced from the Nifty pack.

IndusInd Bank (down 9.27%), Titan Company (down 2.38%) and Asian Paints (down 1.64%) were major losers in Nifty 50 index.

Results Today:

Power Grid Corporation of India (up 0.38%), Coal India (down 0.04%) and Shree Cements (down 0.05%) will announce their quarterly results today.

Abbott India (down 0.63%), Apollo Hospitals Enterprise (up 7.04%), Ashoka Buildcon (up 2.55%), Bharat Forge (up 0.17%), Galaxy Surfactants (down 0.74%), Godrej Industries (up 1.95%), LIC Housing Finance (down 0.70%) and Petronet LNG (up 0.90%) will also announce their quarterly results today.

Computer Age Management Services (CAMS) (down 0.22%) will announce its first ever quarterly result after listing on bourses on 1 October 2020.

Earnings Impact:

Tata Power advanced 2.03% after the power utility reported a 5.7% rise in consolidated net profit to Rs 371 crore in Q2 September 2020 from Rs 350.81 crore in Q2 September 2019. On a consolidated basis, net sales for Q2 September 2020 stood at Rs 8,289 crore, rising 8% year on year from Rs 7,677.82 crore in Q2 September 2019. The company said rise in revenue was due to TP Central Odisha Distribution Limited (TPCODL) acquisition and higher revenue from Solar EPC segment.

EBITDA rose 7% year on year to Rs 2,276 crore in Q2 September 2020. The company said it bagged 347 MW of new solar/hybrid bids while its solar EPC order book stood at Rs 8,687 crore.

Info Edge (India) fell 0.03%. The company reported 78.7% jump in standalone net profit to Rs 51.15 crore on a 19.1% fall in net sales to Rs 256.12 crore in Q2 FY21 over Q2 FY20. Profit before tax in Q2 September 2020 stood at Rs 65.40 crore, up by 82.6% from Rs 35.82 crore in Q2 September 2019. Current tax expense increased by 3.8% YoY to Rs 14.57 crore in Q2 FY21. Total expenditure during the quarter declined by 30% year-on-year (Y-o-Y) to Rs 204.56 crore. Operating EBITDA fell 48.1% to Rs 51.6 crore in Q2 FY21 from Rs 99.3 crore in Q2 FY20.

The company's billing declined 17% to Rs 249.50 crore in Q2 September 2020 compared with Rs 300.50 crore in Q2 September 2019. The deferred sales revenue (amount collected in advance) as at 30 September 2020 is Rs 371.90 crore, down by 22.6% over the quarter ended 30 September 2019.

Bata India declined 3.06% after the footwear major posted a consolidated net loss of Rs 44.32 crore in Q2 September 2020 as against net profit of Rs 71.30 crore in Q2 September 2019. Net sales declined 49% year on year to Rs 367.87 crore in Q2 September 2020 over Q2 September 2019. The company recorded a pre-tax loss of Rs 58.41 crore in Q2 September 2020 as against pre-tax profit of Rs 97.41 crore in Q2 September 2019.

The company said that it has witnessed increasing demand in semi-urban areas and has accordingly responded by opening up its 200th franchise store at Tenali in Andhra Pradesh. As the demand was stronger in Tiers 2-5, given relatively lesser impact of pandemic, Bata said it has leveraged the opportunity to expand its presence via distributor-led multi-brand outlets route. Currently the brand is getting distributed in over 30,000 Multi Brand Outlets (MBOs).

Aarti Industries skid 3.57% after consolidated net profit fell 5.5% to Rs 143.50 crore on 18.7% jump in net sales to Rs 1,172.64 crore in Q2 September 2020 over Q2 September 2019. Consolidated profit before tax (PBT) fell 3.1% to Rs 177.16 crore in Q2 September 2020 as against Rs 182.89 crore in Q2 September 2019. The board declared an interim dividend of Rs 1.50 (30%) per equity share of Rs 5 each for the FY 2020-21.

Stock in Spotlight:

ONGC gained 1.56% after the company said ONGC Videsh will acquire 13.6667% participating interest in exploitation area and 15% participating interest in exploration area under RSSD production sharing contract, offshore Senegal.

Global Markets:

European markets opened higher while most Asian stocks extended gains on Wednesday as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy.

In US, the Dow Jones Industrial Average rose on Tuesday, building on its sharp gains from the previous session as a market rotation out of names that thrived during the pandemic and into stocks linked to an economic recovery continued. However, the S&P 500 and Nasdaq Composite struggled amid a sharp decline in major tech names.

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