Benchmark indices pared losses in the afternoon trade. The barometer index, the S&P BSE Sensex, slipped 42.81 points or 0.11% at 39,571.26. The Nifty 50 index shed 10.70 points or 0.09% at 11,631.70.
The sentiment continued to be fragile as investors braced themselves for the U.S. presidential election on Tuesday.
The broader market was mixed. The S&P BSE Mid-Cap index rose 0.10%. The S&P BSE Small-Cap index lost 0.79%.
Sellers outnumbered buyers. On the BSE, 977 shares rose and 1,482 shares fell. A total of 145 shares were unchanged. In Nifty 50 index, 22 stocks advanced while 28 stocks declined.
Foreign portfolio investors (FPIs) sold shares worth Rs 870.88 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 631.11 crore in the Indian equity market on 30 October 2020, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 4,65,09,820 with 12,00,366 deaths. India reported 5,61,908 active cases of COVID-19 infection and 1,22,607 deaths while 75,44,798 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose to 58.9 in October, from 56.8 in September. The data pointed to the strongest improvement in the health of the sector in over a decade. Growth was led by the intermediate goods category, but there were also robust expansions in the consumer and investment goods sub-sectors.
Meanwhile, the Goods and Services Tax (GST) collections in October stood at over Rs 1.05 lakh crore, crossing for the first time Rs 1 lakh crore mark since February this year. The gross GST revenue collected in the month of October 2020 is Rs 1,05,155 crore, showing an increase of 10% over Rs 95,379 crore in October 2019. The GST revenues for October 2020 consists of CGST of Rs 19,193 crore, SGST Rs 25,411 crore, IGST Rs 53,540 crore (including Rs 23,375 crore collected on import of goods) and cess Rs 8,011 crore (including Rs 932 crore collected on import of goods). The total number of GSTR-3B Returns filed for the month of October upto 31 October 2020 is 80 lakh.
Gainers & Losers:
Bharti Airtel (up 4.54%), Axis Bank (up 3.58%), State Bank of India (SBI) (up 2.92%), Bajaj Finance (up 2.26%) and HDFC (up 2%) were top gainers in Nifty 50 index.
Divi's Laboratories (down 2.46%), Eicher Motors (down 2.25%), Adani Ports & SEZ (down 2.17%), HCL Technologies (down 2.12%) and Britannia Industries (down 2.11%) were major losers in Nifty 50 index.
Results Today:
HDFC (up 2%), NTPC (up 1.20%), Zee Entertainment Enterprises (ZEEL) (down 1.92%), Bandhan Bank (up 4.25%), Cadila Healthcare (down 1.77%), The Ramco Cements (up 0.41%) and Wockhardt (down 0.75%) will announce their quarterly earnings today.
Earnings Impact:
ICICI Bank soared 6.42% after the private bank reported a 549% jump in net profit to Rs 4,251.33 crore on 3.9% rise in total income to Rs 23,650.77 crore in Q2 September 2020 over Q2 September 2019. The bank's core operating profit (profit before provisions and tax, excluding treasury income) increased by 18% year-on-year (Y-o-Y) to Rs 7,719 crore in Q2 September 2020 from Rs 6,533 crore Q2 September 2019.
Profit before tax in Q2 September 2020 stood at Rs 5,265 crore, up by 20.6% from Rs 4,367.23 crore in Q2 September 2019. Tax expense during the quarter fell by 72.67% to Rs 1,014 crore in Q2 September 2020 over Q2 September 2019. The bank's provisions and contingencies increased by 19.5% to Rs 2,996.27 crore in Q2 FY21 from Rs 2,506.87 crore in Q2 FY20. This includes provision of Rs 497 crore made on a prudent basis on loans aggregating to Rs 1,410 crore that were not classified as non-performing pursuant to the Supreme Court's interim order. As of 30 September 2020, the bank held COVID-19 related provision of Rs 8,772 crore.
Reliance Industries (RIL) slumped 6.64% after the index heavyweight's consolidated net profit fell 15.05% to Rs 9,567 crore on 25.50% decline in net sales to Rs 111,236 crore in Q2 September 2020 over Q2 September 2019. The Group's operations and revenue during the quarter were impacted due to COVID-19, RIL said in a statement.
On a standalone basis, Reliance Jio Infocomm posted 187% year-on-year (Y-o-Y) growth in net profit at Rs 2,844 crore in Q2 September 2020. On a quarter-on-quarter (Q-o-Q) basis, the profit figure grew by 12.86%. The telco had posted a Rs 2,520 crore profit in Q1 June 2020. Revenue from operations increased 33% Y-o-Y and 5.6% Q-o-Q to Rs 17,481 crore. ARPU during the quarter was at Rs 145 per subscriber per month as against Rs 140.30 per subscriber per month in Q1 June 2020.
On a consolidated basis, Reliance Retail's revenue from operations for Q2 FY21 increased by 29.7% Q-o-Q to Rs 36,566 crore, and at the same level as the last year despite restricted store operations and lower footfalls. The retail arm's net profit for Q2 September 2020 was at Rs 973 crore, higher by 125.8% Q-o-Q. O2C-Petrochemicals' segment revenue increased by 17.8% quarter on quarter (Q-o-Q) to Rs 29,665 crore with higher prices across product portfolio and higher volumes.
O2C Refining & Marketing segment's revenue for Q2 FY21 increased by 33.3% quarter on quarter basis to Rs 62,154 crore primarily due to higher crude oil price. RIL earned $5.70 per barrel on turning every barrel of crude oil into fuel in the second quarter of the current fiscal as compared to a gross refining margin (GRM) of $6.30 per barrel in the previous quarter.
Revenue from the Oil and Gas (Exploration & Production) business for Q2 FY21 declined by 29.8% Q-o-Q to Rs 355 crore primarily due to lower price realisation and decline in production. Revenue from the Media business for Q2 FY21 rose by 31.5% Q-o-Q as COVID-19 linked impact on ad-revenues receded over the quarter.
IndusInd Bank jumped 6.80%. The bank reported 53.2% decline in net profit to Rs 647.04 crore on 1.6% fall in total income to Rs 8,731.05 crore in Q2 FY21 over Q2 FY20. The bank's provisions and contingencies increased by 166.3% to Rs 1,964.44 crore in Q2 FY21 from Rs 737.71 crore in Q2 FY20.
"The extent to which COVID-19 pandemic will impact the bank's operations and financial results is dependent on the future developments, which are highly uncertain. In view of the same, the bank has made incremental regulatory, floating, counter cyclical and or contingent provisions amounting to Rs 952 crore during the quarter ended 30 September 2020, taking the total amount of such provisions to Rs 2,155 crore as of 30 September 2020, IndusInd Bank said.
As of 30 September 2020, the bank's advances in special mention accounts (SMA)/overdue categories, where the moratorium/deferment was extended aggregated to Rs 17,617.22 crore (8.75% of total advances). The bank has made a provision of Rs 430 crore on the same.
The ratio of gross NPAs to gross advances stood at 2.21% as on 30 September 2020 as against 2.53% as on 30 June 2020 and 2.19% as on 30 September 2019. The ratio of net NPAs to net advances stood at 0.52% as on 30 September 2020 as against 0.86% as on 30 June 2020 and 1.12% as on 30 September 2019.
While the bank's total deposits rose 10.2% to Rs 2,28,279.27 crore, total advances increased 2.1% to Rs 2,01,246.83 crore in Q2 September 2020 over Q2 September 2019.
Global Markets:
Most shares in Europe and Asia advanced on Monday. Market focus is widely centered on the U.S. election uncertainty and the latest coronavirus developments.
The British government on Saturday announced a national lockdown for England, making it the latest country to return to a nationwide shutdown, which begins on Thursday, to try to stem the rapid rise in cases and hospitalizations due to the virus.
China's Caixin/Markit Purchasing Managers' Index (PMI) came in at 53.6 for October, as China's factory activity expanded for the sixth straight month in October as business confidence grew to its strongest in years.
The Monday data release came after China's official manufacturing PMI for October came in at 51.4, according to the country's National Bureau of Statistics. That was slightly lower than the 51.5 reading in September. PMI readings above 50 signify expansion, while those below that indicate contraction. PMI readings are sequential and represent on-month expansion or contraction.
US stocks extended losses Friday, with investors waving off strong quarterly results from technology heavyweights to focus on the uncertain outlook amid a surge in COVID-19 cases in the U.S. and Europe. Nervousness over Tuesday's U.S. elections also continued to hang over the market.
On the U.S. data front, personal income rose 0.9% in September, while consumer spending increased 1.4%. The final October reading of the University of Michigan's consumer sentiment index edged up to 81.8 in October from an initial 81.2.
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