Key equity indices extended their winning streak for seventh trading session and ended with decent gains on Monday, supported by positive global cues. The barometer index, the BSE Sensex rose 136.93 points, or 0.34%, to attain a record closing high of 40,301.96. The Sensex hit an all time high of 40,483.21 in intraday today.
The Nifty 50 index rose 54.55 points, or 0.46%, to end at 11,945.15. The Nifty is still 157.90 points, or 1.32% away from its all time high of 12,103.05 hit on 3 June 2019.
The S&P BSE Mid-Cap index rose 0.01% while the S&P BSE Small-Cap index rose 0.22%. Both these indices underperformed the Sensex.
The market breadth was positive. On the BSE, 1430 shares rose and 1152 shares fell. A total of 173 shares were unchanged.
The Nifty opened higher and advanced further in early trade. It hit the day's high of 11,989 level in mid-morning trade. The 50-unit index pared gains in early afternoon trade. The Nifty managed to hold 11,900 throughout the session. The index firmed up once again in mid-afternoon trade and managed to close near 11,950 level.
Domestic shares have seen steady gains in the last few sessions supported by better-than-expected Q2 results, rate cut by US Federal Reserve and easing Sino-US trade war tensions. The Sensex has risen 3.28% and the Nifty is up 3.13% in seven straight trading sessions from their recent closing low on 24 October 2019.
Crude and currency:
In the foreign exchange market, the Indian rupee edged higher against the dollar. In the spot currency market, the Indian unit was last seen trading at 70.78. It closed at 70.81 in the previous session.
In the commodities market, Brent crude for January 2020 settlement was up 54 cents at $62.23 a barrel. The contract rose $2.07 or 3.47% to settle at $61.69 a barrel during the previous trading session.
Overseas, shares in Europe continued to trade higher while Asian stocks ended higher on Monday as growing optimism over U.S.-China trade talks and upbeat U.S. job data boosted global investors' appetite for riskier assets.
U.S. stocks gained on Friday as the S&P 500 set a closing record for the third time in five days after an upbeat U.S. jobs report and data on Chinese manufacturing eased concerns about slowing global growth.
U.S. nonfarm payrolls rose by 128,000 in October, a Labor Department report showed, overshadowing data showing a contraction in the manufacturing sector for the third straight month.
The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted 16-month-long trade war, and U.S. officials reportedly said a deal could be signed this month.
Domestic Q2 results:
Housing Development Finance Corporation (HDFC) rose 2.48%. On a standalone basis, HDFC reported 60.58% increase in net profit to Rs 3,961.53 crore on a 19.87% increase in total income to Rs 13,494.12 crore in Q2 September 2019 over Q2 September 2018.
HDFC reported 80.38% jump in consolidated net profit to Rs 10,388.61 crore on a 43.14% increase in total income to Rs 32,850.89 crore in Q2 September 2019 over Q2 September 2018.
During the quarter ended 30 September 2019, HDFC sold 6,74,00,000 equity shares of GRUH Finance. This resulted in a pre-tax adjusted gain of Rs 8,000.29 crore in the consolidated financial results. The corporation has recognised such gains as realised gain of Rs 1,473.75 crore on sale of shares and the net unrealised gain of Rs 6,526.54 crore being fair value of the retained investment in GRUH. HDFC still holds 38% in GRUH.
Yes Bank fell 0.75%. The bank reported net loss of Rs 600.08 crore in Q2 September 2019 as compared to net profit of Rs 964.70 crore in Q2 September 2018. Total income fell 4.28% to Rs 8332.21 crore in Q2 September 2019 over Q2 September 2018. Yes Bank's overall profitability was hurt by a deferred tax asset (DTA) impact that resulted in a one-time additional charge of Rs 708.61 crore arising on account of change in corporate tax rate regime. Excluding this onetime impact, adjusted profit after tax (PAT) stood at Rs 109 crore in Q2 September 2019. The bank's profit before tax stood 122.19 crore in Q2 September 2019, down by 91.43% from 1426.46 crore in Q2 September 2018. The total income of the bank fell 4.28% to Rs 8332.21 crore in Q2 September 2019 over Q2 September 2018.
Relaxo Footwear rose 3.85%. On standalone basis, the company's net profit jumped 78.8% to 70.54 crore on a 14.5% increase in net sales to Rs 621.77 crore in Q2 September 2019 as compared to Q2 September 2018. The company's PAT margin improved to 11.3% in Q2 2019 from 7.3% in Q2 2018. The revenue growth was driven mainly by premiumization, product mix and price increase in selected categories. EBITDA jumped 42% to Rs 105 crore in Q2 September 2019 as against 74 crore in Q2 September 2018. The EBITDA margin improved to 16.8% in Q2 2019 from 13.5% in Q2 2018.
J K Lakshmi Cement surged 5.95%. The cement company reported a consolidated net profit of Rs 48.67 crore in Q2 September 2019 compared with net loss of Rs 4.80 crore in Q2 September 2018. Net sales rose 5.6% to Rs 1012.36 crore in the quarter ended on 30 September 2019 as compared to the corresponding quarter in last fiscal.
JSW Energy rose 4.84%. Consolidated net profit rose 11.7% to Rs 352.98 crore on 12.8% decline in net sales to Rs 2,118.55 crore in Q2 September 2019 over Q2 September 2018. Consolidated EBITDA climbed 5% to Rs 1,048 crore in Q2 September 2019 compared with Rs 998 crore in Q2 September 2018.
Shares in focus:
IT major Infosys rose 3.05% to Rs 709 after the company responded to NSE email on whistle-blower complaints. Last month an anonymous whistleblowers accused the chief executive officer (CEO) Salil Parekh and chief financial officer (CFO) Nilanjan Roy of "unethical practices". The National Stock Exchange (NSE) sought clarification from the company on 22 October 2019 with reference to whistleblower complaints.
Infosys clarified on 2 November 2019 that the anonymous complaints make certain allegations. There is no supporting evidence to substantiate the allegations. The anonymous complaints were placed before the audit committee and the non-executive members of the board, in accordance with the whistleblower practice of the company.
Further, given the circumstances at this stage, where there is complete absence of prima facie evidence and the anonymous complaints are still under investigation, the company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints. In light of the above, no disclosure is required to be made, Infosys said.
Commercial vehicles manufacturer, Ashok Leyland fell 0.92%. The company said it proposes to observe non-working days ranging from 0-12 days in November 2019 to align production in line with the market demand.
Eicher Motors declined 1.12%. Total Royal Enfield sales rose 2% to 71964 units in October 2019 over October 2018. Royal Enfield exports surged 987% to 4426 units in October 2019 over October 2018.
Tata Motors fell 1.57%. The auto maker's total sales in the domestic & international market fell by 33.58% to 41,354 units in October 2019 as compared to 62,264 units during October 2018.
Cadila Healthcare declined 5.42% after the company said its Moraiya formulation facility in Gujarat has received a warning letter from the US drug regulator.
Coal India advanced 3.74%. The coal mining and refinery company registered a decline of 20.9% in its total coal production to 39.35 million tonnes while the total coal offtake decreased by 18.9% to 40.50 million tonnes in October 2019 over October 2018.
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