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Indices trade with minor losses; European stocks open lower

Capital Market 

The benchmark indices were trading in a range near the flat line in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, skid 64.32 points or 0.15% at 43,292.87. The Nifty 50 index declined 12.20 points or 0.10% at 12,678.60.

HDFC Bank (down 1.34%), HDFC (down 1.22%) and Larsen & Toubro (down 2.73%) dragged.

In the broader market, the S&P BSE Mid-Cap index rose 0.44%. The S&P BSE Small-Cap index gained 0.83%.

Buyers outnumbered sellers. On the BSE, 1,408 shares rose and 1,097 shares fell. A total of 174 shares were unchanged. In Nifty 50 index, 26 stocks advanced while 24 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,514.12 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,239.43 crore in the Indian equity market on 12 November 2020, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 5,27,36,076 with 12,93,192 deaths. India reported 4,84,547 active cases of COVID-19 infection and 1,28,668 deaths while 81,15,580 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

India's industrial production saw 0.2% growth in September, rising for first time in seven months. According to the Index of Industrial Production (IIP) data, manufacturing sector production registered a decline of 0.6% while output of mining and power segments grew at 1.4% and 4.9%, respectively. The IIP had contracted by 4.6% in September 2019.

India's Consumer Price Index (CPI) extended upward momentum and rose to 7.61% in the month of October. This is around six year high for the index. The CPI for the month of September was revised to 7.27% from 7.34%. The Consumer Food Price Index (CFPI) jumped to 11.07% in the month of October, up from 10.68% in September.

Gainers & Losers:

Coal India (up 2.13%), Divis' Laboratories (up 1.90%), Bajaj Finserv (up 1.56%), Hero MotoCorp (up 1.33%) and Bajaj Finance (up 1.15%) were major gainers in Nifty 50 index.

Tata Motors (down 2.81%), IndusInd Bank (down 1.87%) and HDFC Life Insurance Company (down 1.36%) were major losers in Nifty 50 index.

Results Today:

ONGC (down 0.49%), Tata Steel (up 0.08%), 3M India (up 0.80%), Apex Frozen Food (up 1.90%), General Insurance Corporation (down 0.24%), Graphite India (down 0.95%), Hindustan Aeronautics (up 0.36%) and Indiabulls Real Estate (up 10.70%) will announce quarterly results today.

Earnings Impact:

Fortis Healthcare advanced 3.30%. The company's consolidated net profit tumbled 87.5% to Rs 15.47 crore on a 17.9% fall in net sales to Rs 994.70 crore in Q2 FY21 over Q2 FY20. EBITDA declined by 25.1% to Rs 145.60 crore in Q2 September 2020 as against Rs 194.30 crore in Q2 September 2019. Profit before tax in Q2 FY21 stood at Rs 38.05 crore, down by 70.7% from Rs 129.75 crore in Q2 FY20. Current tax outgo in the second quarter surged to Rs 22.58 crore from Rs 5.71 crore in the same period last year.

Eicher Motors rallied 6.81%. Its consolidated net profit dropped 40% to Rs 343.34 crore on 2.7% decrease in net sales to Rs 2,111.98 crore in Q2 September 2020 over Q2 September 2019. On a consolidated basis, profit before tax (PBT) skid 23.6% to Rs 458.53 crore in Q2 September 2020 as against Rs 600.51 crore in Q2 September 2019. Current tax expense for the quarter surged 43.8% to Rs 118.88 crore as against Rs 82.65 crore in Q2 September 2019. EBITDA fell 13% to Rs 471 crore in Q2 FY21 as compared to Rs 541 crore in the same quarter of the previous financial year.

Housing and Urban Development Corporation (HUDCO) slipped 1.83% after consolidated net profit slumped 37% to Rs 457.25 crore on 9.19% decrease in total revenue from operations to Rs 1,856.78 crore in Q2 September 2020 over Q2 September 2019. On a consolidated basis, profit before tax (PBT) dropped 19.8% to Rs 608.93 crore in Q2 September 2020 as against Rs 759.68 crore in Q2 September 2019. Current tax expense for the quarter jumped 12.9% to Rs 115.56 crore as against Rs 102.40 crore in Q2 September 2019.

Sterling and Wilson Solar tumbled 4.07% after the company's consolidated net profit slumped 81% to Rs 15.09 crore in Q2 FY21 from Rs 79.41 crore in Q2 FY20. Net sales during the quarter increased by 12% year-on-year (Y-o-Y) to Rs 1,336.63 crore in Q2 FY21. Total expense jumped by 16.6% Y-o-Y to Rs 1,358.42 crore in Q2 FY21 over Q2 FY20. Profit before tax in Q2 September 2020 stood at Rs 17.52 crore, down by 82.6% from Rs 100.85 crore in Q2 September 2019. Current tax outgo declined by 78.4% Y-o-Y to Rs 2.95 crore in Q2 FY21.

Stock in Spotlight:

Index heavyweight Reliance Industries (RIL) rose 0.85%. The company entered into a definitive agreement, for making capital contribution, up to $50 million, in Breakthrough Energy Ventures II, L.P. (BEV), a limited partnership, located in United States of America. The capital contribution commitment of $50 million constitutes 5.75% of the size of the fund contemplated at present. The investment will be made in tranches over the next 8-10 years. The transaction is subject to approval from Reserve Bank of India (RBI).

Global Markets:

European markets opened lower while most Asian stocks declined on Friday as surging COVID-19 cases globally and more lockdowns clouded the region's recovery prospects.

The US stock market declined on Thursday as U.S. coronavirus infections surged and investors weighed the timeline for the mass rollout of an effective vaccine.

Investor focus on Friday was likely on the coronavirus situation in the U.S., as daily new cases of the virus continue to rise in the country, setting fresh records.

U.S. Federal Reserve Chairman Jerome Powell warned Thursday that the next few months could be challenging despite recent developments on the vaccine front. From our standpoint, it's just too soon to assess with any confidence the implications of the news for the path of the economy, especially in the near term, Powell said regarding the vaccine.

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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: Fri, November 13 2020. 13:28 IST
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