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Barometers hit day's low; breadth negative

Capital Market 

Indices extended losses and hit day's low in afternoon trade. The Nifty gave up 11,900 mark and descended toward 11,850 level. Selling pressure was wide spread with IT, banks and pharma stocks losing the most.

At 13:24 IST, the barometer index, the S&P BSE Sensex, lost 419.24 points or 1.03% at 40,375.18. The Nifty 50 index slipped 108.8 points or 0.91% at 11,862.35.

Profit booking emerged after the Sensex jumped 7.43% and the Nifty climbed 6.67% in the past ten days. Negative global cues and lack of fresh stimulus from the government put pressure on bourses. Global shares tumbled amid rising concerns about resurgent COVID-19 infections and after the US Treasury Secretary dashed hopes of a stimulus package before the US Presidential election. The US Dow Jones Futures were currently down 173 points, indicating a weak start in US market today.

The broader market traded with losses. The S&P BSE Mid-Cap index shed 0.4% while the S&P BSE Small-Cap index fell 0.17%.

The market breadth was negative. On the BSE, 1115 shares rose and 1354 shares fell. A total of 158 shares were unchanged.

COVID-19 Update:

India reported 812,390 active cases of COVID-19 infection and 111,266 deaths while 6,383,441 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 38,442,524 with 1,091,464 deaths, according to data from Johns Hopkins University.

Gainers & Losers:

Tata Steel (up 2.16%), Asian Paints (up 1.72%), JSW Steel (up 1.45%), Hero MotoCorp (up 1.13%) and GAIL (up 1.09%) were top gainers in Nifty 50 index.

HCL Tech (down 3.57%), Tech Mahindra (down 3.53%), Bajaj Finance (down 3.21%), Bharti Airtel (down 2.81%), Infosys (down 2.33%) were top losers in Nifty 50 index.

Earnings Today:

Hathway Cable (down 2.5%), Mindtree (down 5.19%), South Indian Bank (down 0.58%) and Trident (up 2%) will announce quarterly result today.

Earnings Impact:

Infosys lost 2.3%. The IT major's consolidated net profit jumped 20.5% to Rs 4,845 crore on a 8.6% rise in revenues to Rs 24,570 crore in Q2 September 2020 over Q2 September 2019. Sequentially, consolidated net profit rose 14.4% and revenue increased 3.8% in Q2 September 2020 (Q2FY21) over Q1 June 2020 (Q1FY21). Operating profit jumped 16.1% to 6,228 crore in Q2 FY21 over Q1 FY21. Operating margin stood at 25.3% in Q2 FY21, higher than 22.7% in Q1 FY21. The company has revised FY21 growth guidance upward to 2% to 3% in constant currency term.

Operating margin for FY21 is also revised upward in the range of 21% to 23%. The company announced large deal wins worth $3.15 billion during the quarter. Infosys' Q2 revenue grew year-on-year by 3.2% in dollar terms and grew by 2.2% in constant currency. Digital revenues were at $1,568 million (47.3% of total revenues), year-on-year growth of 25.4% in constant currency.

Infosys declared an interim dividend of Rs 12 per equity share. It fixed 26 October 2020 as record date for interim dividend and 11 November 2020 as payment date.

Tata Elxsi rose 1.11% after the company's consolidated net profit jumped 58.4% to Rs 78.88 crore on 11.5% rise in net sales to Rs 430.18 crore in Q2 September 2020 over Q2 September 2019. The company's revenue from the software development & services business segment stood at Rs 420.53 crore (up 12.7% YoY). The revenue from the system integration & support services segment was at Rs 9.65 crore (down 23.3% YoY) in the second quarter.

Goa Carbon jumped 3.37%. The company reported net loss of Rs 5.03 crore in Q2 September 2020, lower than net loss of Rs 13.77 crore in Q2 September 2019. Net sales slipped 13.3% to Rs 87.93 crore in Q2 September 2020 over Q2 September 2019.

Tata Steel BSL rose 0.87%. The company posted a consolidated net profit of Rs 341.71 crore in Q2 September 2020, compared with net loss of Rs 243.97 crore in Q2 September 2019. It posted revenue of Rs 5187.30 crore in Q2 September 2020, a 20.31% increase over Rs 4,311.67 crore in Q2 September 2019.

Den Networks fell 4.2%. The company's consolidated net profit jumped 284% to Rs 37 crore on 2% rise in revenue to Rs 338 crore in Q2 September 2020 over Q2 September 2019. Consolidated EBITDA grew by 30% year on year (YoY) to Rs 62 crore in Q2 September 2020. EBITDA margin improved to 19% in Q2 September 2020 from 15% in Q2 September 2019.

Global Markets:

European markets opened with steep losses while Asia shares declined on Thursday as hopes of US fiscal stimulus before the presidential election faded. Meanwhile, rising coronavirus infections in parts of Europe propelled investors toward safe havens such as gold.

The US stock market finished session firmly into negative territory on Wednesday, 14 October 2020, as US Treasury Secretary Steven Mnuchin down played the chances of striking a stimulus deal before the election.

Treasury Secretary Steven Mnuchin said that getting a deal done before the election would be difficult, adding that both sides were still far apart on certain issues. He also noted, however, that Democrats and Republicans are making progress in some areas.

Downbeat comments from Treasury Secretary Steven Mnuchin that deal would not likely be made before the vote added to fragile sentiment following a mixed bag of quarterly earnings reports from major Wall Street lenders.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, October 15 2020. 13:23 IST