Sensex, Nifty extend losses; bank stocks correct

The benchmark indices continued to trade with minor cuts in morning trade trade. The Nifty slipped below the 11,900 mark. Bank shares witnessed some profit booking after advancing for four straight sessions.

The domestic benchmarks mirrored the fall in their Asian peers. Investor sentiment was hit after U.S. President Donald Trump on Wednesday accused Democrats of being unwilling to craft an acceptable compromise on stimulus, following reports of progress earlier in the day.

At 10:22 IST, the barometer index, the S&P BSE Sensex, was down 134.55 points or 0.33% at 40,572.76. The Nifty 50 index lost 38.90 points or 0.33% at 11,898.75.

In the broader market, the S&P BSE Mid-Cap index was trading flat while the S&P BSE Small-Cap index rose 0.18%.

The market breadth was positive. On the BSE, 1108 shares rose and 915 shares fell. A total of 111 shares were unchanged.

Coronavirus Update:

India reported 715,812 active cases of COVID-19 infection and 116,616 deaths while 6,874,518 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 41,171,093 with 1,130,597 deaths, according to data from Johns Hopkins University.

Buzzing Index:

The Nifty Bank index slipped 0.60% to 24,487.05. The index had gained 6.77% in the past four sessions.

Bandhan Bank (down 1.88%), Federal Bank (down 1.58%), ICICI Bank (down 1.42%), Bank Of Baroda (down 1.18%), RBL Bank (down 1%) and IndusInd Bank (down 0.98%) declined.

Meanwhile, IDFC First Bank (up 0.96%), Axis Bank (up 0.49%) and Punjab National Bank (up 0.37%) bucked the trend.

Earnings Today:

Asian Paints (down 0.79%), Bajaj Auto (down 0.33%), Biocon (down 0.94%), Sterlite Tech (up 2.90%), Ambuja Cements (down 0.75%), Bharti Infratel (down 0.65%), Coforge (up 0.70%), Crompton Greaves Consumer (down 0.77%), HDFC AMC (down 0.65%), Hexaware (up 0.07%), Alembic Pharma (up 0.15%), Mphasis (up 2.87%), SBI Cards (down 0.43%), Tube Investments of India (up 1.14%), UCO Bank (up 0.79%) and L&T Finance Holdings (up 0.32%) will announce their quarter earnings today.

Earnings in Focus:

Bajaj Finserv rose 1.05% to Rs 5968. The company posted an 18.06% fall in consolidated net profit to Rs 986.29 crore in Q2 September 2020 from Rs 1,203.72 crore in Q2 September 2019. Total income rose 5.82% to Rs 15,051.59 crore in Q2 September 2020 from Rs 14,224.22 crore in Q2 September 2019.

During the quarter, the group has made an expected credit loss (ECL) provision on standard (stage 1 and 2) assets of Rs 1,370 crore, in respect of aforesaid subsidiaries, taking the overall EGL provision on standard assets to Rs 5,099 crore as of 30 September 2020. The group continues to hold a management overlay of Rs 2,260 crore as part of its ECL provision for standard assets of Rs 5,099 crore as at 30 September 2020.

Syngene International tumbled 4.93% to Rs 525 after the company reported 34.3% fall in consolidated net profit to Rs 84.10 crore on 11.8% rise in net sales to Rs 519.60 crore in Q2 FY21 over Q2 FY20. EBITDA in the second quarter increased by 6% to Rs 169 crore from Rs 160 crore reported in the same period last year. EBITDA was at 32% in Q2 FY21 as compared to 33% in Q2 FY20. Profit before tax in Q2 September 2020 stood at Rs 94.20 crore, down by 44.6% from Rs 170.10 crore in Q2 September 2019. Current tax expense during the quarter tumbled 76% year-on-year (YoY) to Rs 10.10 crore.

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