Shares trade with decent gains

Key indices bounced back from early lows in morning trade. At 10:24 IST, the barometer index, the S&P BSE Sensex, was up 149.28 points or 0.38% at 39,877.69. The Nifty 50 index added 45.20 points or 0.39% at 11,725.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.57% while the S&P BSE Small-Cap index added 0.16%.

The market breadth was positive. On the BSE, 1110 shares rose and 898 shares fell. A total of 136 shares were unchanged.

Coronavirus Update:

India reported 804,528 active cases of COVID-19 infection and 112,161 deaths while 6,453,779 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 38,851,358 with 1,097,278 deaths, according to data from Johns Hopkins University.

Buzzing Segment:

Shares of three air conditioner makers gained in trade after the government banned the import of air conditioners (ACs) with refrigerants.

Johnson Controls-Hitachi Air Conditioning India (up 4.32%), Blue Star (up 2.85%) and Voltas (up 2.48%) advanced.

In a notification issued on Thursday, the Directorate General of Foreign Trade (DGFT) moved split system and other ACs with refrigerants into the 'prohibited' category from the current 'free' category.

Earnings Today:

Bajaj Consumer Care (up 0.69%), Federal Bank (up 1.26%), IndiaNivesh (down 0.84%), Phillips Carbon (up 0.88%), Shakti Pumps (up 2.12%), Shoppers Stop (up 0.79%), Tata Communication (up 5%) and Tinplate Company (up 1.23%) will announce Q2 earning today.

Earnings in Focus:

Hathway Cable & Datacom hit a lower circuit of 5% at Rs 31.15. The company reported a consolidated net profit of Rs 52.22 crore in Q2 FY21 as against net loss of Rs 5.42 crore in Q2 FY20. Net sales during the quarter fell 2.5% year-on-year (YoY) to Rs 431.24 crore. On the segmental front, revenue from the broadband business was at Rs 153.34 crore (up 10% YoY) while the revenue from the cable television business was at Rs 277.90 crore (down 8.2% YoY) in the second quarter.

Total expenditure declined 9.5% to Rs 310.85 crore while the interest payments were down by 91.8% to Rs 4.27 crore in Q2 September 2020 over Q2 September 2019. Profit before tax (PBT) in Q2 FY21 stood at Rs 69.43 crore, surging from Rs 5.57 crore in Q2 FY20.

Mindtree tumbled 7.94% to Rs 1314.15. The IT firm's consolidated net profit jumped 88% to Rs 253.7 crore on a 0.61% rise in revenue to Rs 1926 crore in Q2 September 2020 over Q2 September 2019.

Sequentially, consolidated net profit rose 19% and revenue increased 0.9% in Q2 September 2020 (Q2FY21) over Q1 June 2020 (Q1FY21). Consolidated profit before tax (PBT) stood at Rs 344.70 crore in Q2FY21, rising 19% from Rs 289.80 crore in Q1FY21. Current tax expense rose 18.49% to Rs 91 in Q2FY21 over Q1FY21.

Consolidated EBITDA grew by 8.8% to Rs 378.4 crore in Q2FY21 over Q1FY21. EBITDA margin stood at 19.6% during Q2FY21 over 18.2% in Q1FY21.

Meanwhile, the company has declared a dividend of Rs 7.5 per equity share. The record date for payment is 27 October 2020 and the dividend will be paid on 11 November 2020.

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