Global stock markets tumbled as coronavirus cases climb on both sides of the Atlantic, and U.S. politicians have been unable to reach a stimulus deal ahead of the presidential election next week.
In broader market, the S&P BSE Mid-Cap index rose 0.62% while the S&P BSE Small-Cap index fell 0.03%.
The market breadth was mildly positive. On the BSE, 1345 shares rose and 1235 shares fell. A total of 171 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 4,50,29,008 with 11,81,108 deaths.
India reported 5,94,386 active cases of COVID-19 infection and 1,21,090 deaths while 73,73,375 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Meanwhile, the Maharashtra government issued orders extending the Covid-19 induced lockdown for another month, till midnight of 30 November 2020. The state government under its 'Mission Begin Again' plan said that the phase-wise opening of activities in Maharashtra will "remain in force till 30 November, 2020 for containment of COVID-19 epidemic in the state and all departments of government of Maharashtra shall strictly implement these guidelines.
Economy:
India's output of eight core infrastructure sectors dropped by 0.8% in September, mainly due to decline in production of crude oil, natural gas, refinery products and cement. The production of eight core sectors had contracted 5.1% in September 2019, data released by the Commerce and Industry Ministry showed on Thursday. The decline in output during the month under review was lowest since March. Barring coal, electricity and steel, all sectors (crude oil, natural gas, refinery products, fertiliser and cement) recorded negative growth in September 2020.
India's fiscal deficit stood at Rs 9.1 lakh crore halfway through this financial year, exceeding the full-year target of Rs 7.96 lakh crore by almost 15%, according to official data released on Thursday. Total expenditure stood at Rs 14.8 lakh crore, or 48.6% of the budget estimate. The Centre spent 53% of the budgeted expenditure in the six months ended September 2019. The government's total revenue was Rs 5.7 lakh crore at the end of September, representing 25% of the budgeted amount and 40% of the figure a year earlier, data from the Controller General of Accounts revealed.
Results Today:
Index heavyweight Reliance Industries was up 0.23% ahead of Q2 results today.
Deepak Nitrite (up 0.4%), IndusInd Bank (down 1.80%), Just Dial (down 4.43%), Motilal Oswal (up 1.55%), Quess Corp (up 1.4%) and UPL (up 0.74%) are some of the companies that will announce their quarterly results today.
Earnings Impact:
InterGlobe Aviation (IndiGo) fell 1.49% after the airliner posted a consolidated net loss of Rs 1,194.83 in Q2 September 2020, higher than net loss of Rs 1,061.99 crore in Q2 September 2019. Consolidated revenue from operations stood at Rs 2,740.96 crore in Q2 September 2020, falling 66% from Rs 8,105.19 crore in the same period last year. For the quarter, the company's passenger ticket revenues were Rs 2,208.20 crore, a decrease of 68.9% and ancillary revenues were Rs 506.60 crore, a reduction of 45.5% compared to the same period last year. The airline company posted a 59.3% rise in EBITDAR to Rs 408.50 crore in Q2 September 2020 from Rs 256.40 in Q2 September 2019. EBITDAR margin improved to 14.9% in Q2 September 2020 from 3.2% registered in the same period last year.
Vodafone Idea rose 4.42%. The telecom operator reported a consolidated net loss of Rs 7,218.2 crore in Q2 September 2020, lower than net loss of Rs 50,921.90 crore in Q2 September 2019. Gross revenue during the quarter declined 0.5% year-on-year (YoY) to Rs 10,791.20 crore. It rose 1.2% quarter on quarter as economic activities have gradually started to resume. EBITDA in the second quarter rose 22.3% to Rs 4,152.40 crore from Rs 3,395.60 crore reported in the same period last year. EBITDA margin was at 38.5% as on 30 September 2020 as against 31.3% as on 30 September 2019. The teleco recorded an exceptional expense of Rs 767.10 crore during the first quarter. Of the total sum, Rs 338.40 crore pertains to integration and merger related costs; Rs 297.70 crore is provisioning for additional depreciation or impairment of assets; and Rs 128.70 crore is for one-time spectrum charge (including interest).
TVS Motor Company rallied 7.93%. The company's consolidated net profit fell 29.4% to Rs 181.41 crore on 5.9% rise in net sales to Rs 5,254.36 crore in Q2 September 2020 over Q2 September 2019. Total two-wheeler sales stood at 8.34 lakh units for the quarter was almost in line with 8.42 lakh units in Q2 September 2019. Two-wheeler export sales grew 7.8% during the quarter as compared to Q2FY20. Motorcycles registered a sales of 3.66 lakh units in Q2 September 2020 as against a sales of 3.42 lakh units registered in Q2 September 2019, recording a 7.01% jump Y-o-Y (year-on-year).
Canara Bank rose 0.47%. The PSU lender reported 21.8% jump in net profit to Rs 444.41 crore on 44.1% rise in total income to Rs 20,836.71 crore in Q2 September 2020 over Q2 September 2019. Profit before tax in the second quarter stood at Rs 622.95 crore, up by 23% from Rs 506.64 crore recorded in the same period last year. Provision for taxes rose by 26% to Rs 178.54 crore in Q2 September 2020 from Rs 141.72 crore in Q2 September 2019. Gross non-performing assets (NPAs) stood at Rs 53,437.92 crore as on 30 September 2020 as against Rs 57,525.52 crore as on 30 June 2020 and Rs 38,711.33 crore as on 30 September 2019.
Indian Oil Corporation rose 1.91% to Rs 79.95 after the company's standalone net profit surged over three times to Rs 6,227.31 crore in Q2 September 2020 from Rs 1,910.84 crore in Q1 June 2020. Revenue from operations rose 37.2% to Rs 85,610.51 crore in Q2 September 2020 from Rs 62,396.60 crore in Q1 June 2020. The revenue, however, is down by 23.4% as compared to Rs 1,11,690.85 crore in the same period last year. The company said the average gross refining margin (GRM) for the period April- September 2020 jumped 16.9% to $3.46 per barrel against $2.96 per barrel for the same period of the previous year. The core GRM or the current price GRM for the period April- September 2020 after offsetting inventory loss/gain came to $1.57 per bbl, it added.
Security and Intelligence Services (India) surged 5.5% after the company's consolidated net profit jumped 41.9% to Rs 108.1 crore on a 3.3% rise in revenue from operations to Rs 2,157.9 crore in Q2 September 2020 over Q2 September 2019. Revenue from Security Solutions India business stood at Rs 839.16 crore (down 4.2% YoY), Security Solutions International business generated revenue of Rs 1,068 crore (up 18.19% YoY) and revenues from Facilities Management were at Rs 256 crore (down 18.5% YoY) during the quarter. EBITDA increased by 4.9% to Rs 129.7 crore in Q2 September 2020 from Rs 123.6 crore in Q2 September 2019. EBITDA margin was at 6% as on 30 September 2020 as against 5.9% as on 30 September 2019.
Global Markets:
Futures on the Dow Jones Industrial Average dropped 227 points on Friday after some of the technology heavyweights came under pressure following their quarterly reports.
Shares in Europe and Asia declined on Friday as record numbers of coronavirus cases worldwide and the 3 November U.S. presidential election remained the major factors looming ahead for investors.
The European Union (EU) plans to finance the transfer of COVID-19 patients across borders within the bloc in order to avoid overburdening of hospitals as the virus surges across the continent.
The European Central Bank (ECB) left policy unchanged on Thursday. However, it warned that the pandemic posed risks to economic growth and it would reassess whether more support is needed at its 10 December 2020 meeting, when new projections become available.
In Asia, Japan's industrial output rose 4% in September from the previous month, according to a preliminary report released Friday by the country's Ministry of Economy, Trade and Industry.
US stocks closed higher on Thursday, with the technology heavyweights rallying ahead of major earnings reports and upbeat domestic economic data calming investor jitters about surging coronavirus cases.
The US economy grew at an unrivalled pace in the third quarter. Gross domestic product rebounded at a 33.1% annualized rate last quarter, the Commerce Department said in its advance estimate on Thursday. That was the fastest pace since the government started keeping records in 1947 and followed a historic shrinkage rate of 31.4% in the second quarter.
In coronavirus developments, Moderna said Thursday it is prepping for the global launch of its potential coronavirus vaccine. That comes amid a rise in cases in the U.S. as well as Europe, with Germany and France announcing new nationwide lockdowns.
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