Benchmarks trim gains; pharma shares slide

The key indices came off the day's high in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex was up 136.73 points or 0.34% at 40,695.22. The Nifty 50 index gained 39.75 points or 0.33% at 11,936.20.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.87% while the S&P BSE Small-Cap index gained 0.74%.

Buyers outnumbered sellers. On the BSE, 1651 shares rose and 950 shares fell. A total of 151 shares were unchanged.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee rose to 73.61 compared with its previous closing 73.54.

The yield on 10-year benchmark federal paper fell to 5.847% compared with its closing of 5.915% in the previous trading session.

MCX Gold futures for 04 December 2020 settlement added 0.31% to Rs 50,925.

In the commodities market, Brent crude for December 2020 settlement gained 2 cents to $42.48 a barrel. The contract rose 1.74% or 73 cents to settle at $42.46 in the previous trading session.

Buzzing Index:

The Nifty Pharma index shed 0.11% to 11,532.70. The index is down 0.97% in two sessions.

Torrent Pharma (up 0.71%), Lupin (up 0.64%), Cipla (up 0.38%) and Aurobindo Pharma (up 0.24%) were the top index gainers.

Biocon (down 2.51%), Divi's Labs (down 0.76%), Alkem Laboratories (down 0.22%) and Dr. Reddy's Labs (down 0.18%) were the top index losers.

Cadila Healthcare rose 0.19% to Rs 426.20 after the company said it has received final approval from the US drug regulator to market Albuterol tablets in the strengths of 2 mg and 4 mg. Albuterol is a bronchodilator and is used to treat and to prevent bronchospasm. The tablets help to open up airways in lungs and to make breathing easy.

Stocks in Spotlight:

L&T Finance Holdings rose 2.02% to Rs 65.65 after the company's consolidated net profit jumped 52.2% to Rs 265.12 crore despite a 5.5% fall in total income to Rs 3508.91 crore in Q2 FY21 over Q2 FY20. The company's provisions and write-offs increased by 25.8% to Rs 604.52 crore in the second quarter compared with the same period last year.

The company said that the quarter saw a significant up-take in rural and infrastructure finance, led by a revival in the economy, leading to significant month-on-month (MoM) improvement in collections. LTFH took full advantage of the faster than expected recovery in rural and infrastructure segments and is well positioned for the upcoming festive season.

Music Broadcast hit an upper circuit of 20% at Rs 21.35 after the private FM radio broadcaster announced bonus issue of non-convertible non-cumulative redeemable preference shares (NCRPS) for every ten shares held by non-promoter shareholders. The issue price will be Rs 100 per share, including a premium of Rs 90 and face value of Rs 10. The total issue size will be worth Rs 90 crore, and the coupon rate for the same will be 0.1%.

Music Broadcast, posted a net loss of Rs 6.49 crore in Q2 September 2020 compared with net profit of Rs 18.51 crore in Q2 September 2019. Net sales tumbled 52% to Rs 30 crore in Q2 September 2020 over Q2 September 2019. Continued cost control led to faster improvement in profitability, the company said.

IDBI Bank added 1.02% to Rs 39.60 after the bank reported a standalone net profit of Rs 324.40 crore in Q2 September 2020 compared with net loss of Rs 3,458.84 crore in Q2 September 2019. Total income fell 7.54% to Rs 5,761.06 crore in Q2 September 2020 from Rs 6,231.02 crore in Q2 September 2019.

The bank's provisions and contingencies slumped 89% to Rs 581.15 crore in Q2 September 2020 over Q2 September 2019. The bank has made COVID-19 related provision of Rs 247 crore in March 2020 quarter and Rs 189 crore in June 2020 quarter (cumulative COVID 19 related provision of Rs 436 crore as at 30 September 2020). IDBI Bank's provision coverage ratio stood at 95.96% in Q2 September 2020.

On the asset quality front, the ratio of gross NPAs to gross advances stood at 25.08% as on 30 September 2020 as against 26.81% as on 30 June 2020 and 29.43% as on 30 September 2019. The ratio of net NPAs to net advances stood at 2.67% as on 30 September 2020 as against 3.55% as on 30 June 2020 and 5.97% as on 30 September 2019.

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