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Volatile session ends with decent gains

Capital Market 

The benchmark indices ended the roller-coaster session with decent gains on Wednesday. Banks and metal stocks rallied while IT and FMCG shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex, gained 162.94 points or 0.40% at 40,707.31. The Nifty 50 index added 40.85 points or 0.34% at 11,937.65.

After surging past 12,000 mark in early afternoon trade, the Nifty 50 index briefly slumped below 11,800 mark in mid-afternoon trade. It bounced back above 11900 level in late trade.

In the broader market, the S&P BSE Mid-Cap index gained 0.23% while the S&P BSE Small-Cap index rose 0.03%.

The market breadth was positive. On the BSE, 1376 shares rose and 1287 shares fell. A total of 172 shares were unchanged.

Cabinet Decisions:

The Union Cabinet approved productivity linked bonus and non-productivity linked bonus for 2019-2020. A total of 30.67 lakh non-gazettes employees will be benefited by the bonus announcement and total financial implication will be Rs 3,737 crore.

Further, the Cabinet approved adoption of the Jammu and Kashmir Panchayati Raj Act, 1989. The move will help establish all the three tiers of grass root level democracy like in other part of the country.

Coronavirus Update:

India reported 740,090 active cases of COVID-19 infection and 115,914 deaths while 6,795,103 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 40,728,371 with 1,123,967 deaths, according to data from Johns Hopkins University.

Buzzing Index:

The Nifty Realty index jumped 4.01% to 236.05. The index has added 12.62% in four sessions while the benchmark S&P BSE Sensex gained 2.59% during the same period.

Sobha Developers (up 11.97%), Godrej Properties (up 10.56%), Indiabulls Real Estate (up 6.90%), Brigade Enterprises (up 4.33%), Sunteck Realty (up 3.37%), DLF (up 2.87%), Oberoi Realty (up 2.35%) and Omaxe (up 1.12%) advanced while Prestige Estates (down 3.1%) declined.

Earnings Today:

Bajaj Finserv (down 1.01%), Syngene (down 0.40%), GMM Pfaudler (down 0.77%), Chennai Petroleum (up 4.57%), JK Tyres & Industries (up 3.49%), KPIT Technologies (down 0.71%) and Tejas Networks (up 8.14%) will announce their quarterly earnings today.

Earnings in Focus:

Bajaj Finance fell 0.28% to Rs 3253 after the NBFC's consolidated net profit slipped 36% to Rs 965 crore on 3% increase in total income to Rs 6523 crore in Q2 September 2020 over Q2 September 2019.

During the quarter, the company made an expected credit loss (ECL) provision on stage 1 and 2 assets of Rs 1,370 crore taking the overall ECL provision on stage 1 and 2 assets to Rs 5,099 crore as of 30 September 2020 as against Rs 3,729 crore as or 30 June 2020. The ECL provision as a percentage of stage 1 and 2 assets is 3.69% as of 30 September 2020 as against 2.73% as of 30 June 2020 and 0.91% as of 30 September 2019.

Net Interest Income rose 4% year-on-year to Rs 4,165 crore in Q2 September 2020. During the quarter, as a measure of prudence, the company said it has reversed capitalised interest of Rs 142 crore.

Gross non-performing asset (NPA) and Net NPA as of 30 September 2020 stood at 1.03% and 0.37% respectively, as against 1.61% and 0.65% as of 30 September 2019. The provisioning coverage ratio as of 30 September 2020 was 64%.

Colgate-Palmolive slipped 2.72% at Rs 1423. The company posted a 12.32% rise in net profit to Rs 274.19 crore in Q2 September 2020 from Rs 244.11 crore registered in Q2 September 2019. Net sales stood at Rs 1,277.66 crore in Q2 September 2020, an increase of 5.3% over the same quarter of the previous year.

Meanwhile, the company has declared an interim dividend of Rs 18 per equity share and the record date is on 2 November 2020.

Shiva Cement soared 8.92% to Rs 11.36. The cement maker's board approved the plan for setting up of 4000 TPD clinker unit alongwith a 1 MTPA grinding unit. The company will fund the project cost of Rs 1530 crore with a mix of long-term debt and equity. The ground breaking ceremony is scheduled to be held on 22 October 2020. The board also approved the corporate environment policy.

Shiva Cement posted net loss of Rs 6.26 crore in Q2 September 2020 compared with net loss of Rs 6.23 crore in Q2 September 2019. Net sales fell 6.5% to Rs 5.32 crore in Q2 September 2020 over Q2 September 2019. The Q2 result was declared post trading hours yesterday, 20 October 2020.

Larsen & Toubro Infotech (L&T Infotech) jumped 4.35% to Rs 3093.55 after the company reported 9.70% rise in consolidated net profit to Rs 456.80 crore on 1.7% increase in revenues to Rs 2,998.40 crore in Q2 September 2020 over Q1 June 2020. EBITDA margin grew 22.9% in Q2 FY21 as against 20.1% in Q1 FY21.

The board declared first interim dividend of Rs 15 per share for the financial year 2020-21. The record date is set at 28 October 2020.

CRISIL fell 1.78% to Rs 1831.65 after the credit rating agency recorded a 14.2% fall in consolidated net profit to Rs 90.23 crore on a 11.3% rise in net sales to Rs 484.99 crore in Q3 September 2020 over Q3 September 2019.

Hindustan Zinc added 4.60% to Rs 233.20. The company's net profit declined 6.8% to Rs 1940 crore on 24% rise in net sales to Rs 5533 crore in Q2 September 2020 over Q2 September 2019. The company's board approved an interim dividend of Rs 21.30 per share for the financial year 2020-21 amounting to Rs 9,000 crore.

Stocks in Spotlight:

Reliance Industries (RIL) fell 1.56% to Rs 2121.80. Qualcomm Technologies, Inc. and Jio Platforms along with its wholly owned subsidiary Radisys Corporation today announced their expanded efforts to develop open and interoperable interface compliant architecture based 5G solutions with a virtualized RAN. This work is intended to fast track the development and roll out of indigenous 5G network infrastructure and services in India. Qualcomm Technologies and Jio also announced that they achieved over a 1 gbps milestone on the Jio 5GNR solution, leveraging the Qualcomm's 5G RAN Platforms.

Larsen & Toubro (L&T) gained 0.97% to Rs 926.20. The construction arm of the company secured 'large' orders from various clients. As per the L&T's classification, the valuation of the 'large' order stands between Rs 2,500 crore and Rs 5,000 crore. The announcement was made during market hours today, 21 October 2020.

Motherson Sumi Systems shed 1.74% to Rs 107.30. The company, through its Mexican arm, MRS, struck a deal to acquire Bombardier's electrical wiring interconnection business in Mexico on a debt-free and cash-free basis valued at around $10 million.

Global Markets:

European markets edged lower while most Asian stocks advanced on Wednesday as investors continued to monitor the development on the US fiscal stimulus front.

The US stock market finished session higher on Tuesday, 20 October 2020, as risk sentiments underpinned on continued hope the lawmakers will eventually agree on a stimulus plan sometime soon.

White House Chief of Staff Mark Meadows said that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have made good progress during talks, before adding that they still have a ways to go before an agreement is reached.

Reports that Moderna's coronavirus vaccine could be available for emergency use in December if it gets positive results from interim trial in November further aided sentiment.

Tech shares shook off the US Justice Department's decision to sue Google for allegedly abusing its power. Alphabet's shares rose 1.4%. Procter & Gamble shares climbed 0.4% after reporting sales growth of 9% for the previous quarter. Shares of insurer Travelers gained 5.6% as it beat quarterly profit expectations. But IBM shares fell 6.5% after it refused to issue a current quarter outlook.

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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: Wed, October 21 2020. 15:39 IST