Sensex ends 340 points lower, Nifty holds 10,000; Yes Bank down 9%

CNBC

Market at Close:  A largely choppy session has ended around the low point. However, the Nifty held psychological 10,000-mark, while the Sensex ended over 300 points lower.  The 50-share index has had a wobbly start to November series. 

Selling was visible across all sectors, with banks, consumption, IT, metals and pharmaceuticals witnessing weak trades. The Nifty Midcap was mildly lower.  
A drop in crude oil prices too failed to lift up sentiment on D-Street. 
At the close of market hours, the Sensex closed lower by 340.78 points or 1.01% at 33349.31, while the Nifty closed down by 94.90 points or 0.94% at 10030.00. The market breadth was negative 1,090 shares advanced, against a decline of 1,438 shares, while 1,087 shares were unchanged.
Bajaj Auto, Tata Motors, UPL and Titan were the top gainers, while Yes Bank, Axis Bank, and JSW Steel lost the most.   
Earnings Performance
Reliance General Insurance Company (RGI) reported 20 percent rise in profit at Rs 56 crore for the second quarter ended September 30, 2018.
Gross written premium too surged 20 percent to Rs 2,025 crore during the quarter, it said in a statement.
RGI said its market share in the general insurance business rose to 4.5 percent from 4.3 percent in the second quarter of 2017-18.
Combined ratio improved to 106 percent in the reported quarter from 109 per cent in the year-ago period, it added. Source: PTI
Earnings Report Card
Edelweiss Financial Services Ltd (Edelweiss) reported a jump of 53 per cent in its consolidated net profit at Rs 276.38 crore in second quarter ended September driven by a healthy core income.
The company had registered a net profit of Rs 180.88 crore in the similar July-September period of 2017-18.
Total income (consolidated) during the period grew to Rs 2,672.59 crore in the September quarter of 2018-19, as against Rs 2,030.23 crore in the same period of the preceding fiscal, Edelweiss said in a regulatory filing.
The interest income during the period rose to Rs 1,712.98 crore from Rs 1,170.04 crore. There was however, a fall in dividend and rental income, but an increase in fee and commission income. Source: PTI
Market Update:
Benchmark indices slipped further after ITC reported in line earnings for the quarter ended September 2018. Further selling pressure in European stocks also weighed on sentiment.
The 30-share BSE Sensex was down 262.96 points at 33,427.13 and the 50-share NSE Nifty fell 75.90 points to 10,049.
European Markets Fall Amid Global Growth Fears
European stocks were lower, tracking losses in Asia as anxiety over the outlook for US corporate profits renewed concerns about global economic growth.
France's CAC, Germany's DAX and Britain's FTSE were down around 1.5 percent each.
In Asia, stocks tumbled to 20-month lows on Friday. MSCI's broadest index of Asia-Pacific shares, excluding Japan, dropped 1 percent. The losses came despite a bounce on Wall Street overnight, though Amazon and Alphabet Inc both fell sharply after the closing bell following disappointing quarterly results. Source: CNBC.
Earnings Performance
Ruchira Papers' shares gained nearly 8 percent intraday after the second quarter profit grew by 29.7 percent year-on-year to Rs 10.9 crore and revenue rose by 25 percent to Rs 130 crore.
EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 40.5 percent to Rs 22.5 crore and margin expanded 190 basis points to 17.3 percent YoY.
ICICI Securities Upgraded Kajaria Ceramics Post Earnings
Kajaria management has guided for better performance in second half of FY19 in recent media interaction. They have guided for 14-15 percent volume growth and EBITDA margin of 16 percent+ in H2FY19E.
In the context of improving financial performance and the recent correction in the stock, Kajaria is currently available at an attractive valuation of 21x FY20E EPS.
Hence, ICICI Securities upgraded recommendation on the stock to buy with a revised target price of Rs 450 (around 24x FY20E EPS). 
Strong Results
Atul has reported a healthy 70 percent on year growth in second quarter profit to Rs 119 crore, driven by revenue as well as operational performance.
Profit in corresponding period last fiscal stood at Rs 70.1 crore.
Revenue from operations during the quarter grew by 28 percent to Rs 1,007 crore compared to Rs 787 crore in same period last year.
EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 52.2 percent year-on-year to Rs 190 crore and margin expanded by 300 bps to 18.9 percent YoY.
Market Outlook
Dilip Bang, Vice Chairman and Managing Director at Nirmal Bang said globally, crude oil prices softened considerably in the previous fortnight owing to increased supply in the market. This drop in crude oil prices helped strengthen the Indian rupee against the US dollar.
Earnings results of India Inc have started pouring in and seem to be in line with market expectations.
The Indian stock markets look good in the coming fortnight. The Nifty Futures has support at 10,180 and 10,075 levels. On the upside, it could go up to the 10,450 level and touch the 10,680 level, thereafter.
Market participants should watch out for the outcome of the ongoing trade war between the US and China as well as growing geopolitical tensions between the US and Saudi Arabia. Also, they could keep an eye on the money market situation in India, which has been disturbed in the past one month as well as the upcoming corporate earnings results..
Market Update:
Benchmark indices cut down losses in afternoon with the Nifty reclaiming 10,100 levels, backed by Reliance Industries (up 2.1 percent), Tata Motors (4 percent), ICICI Bank (0.9 percent) and HDFC (0.5 percent).
The 30-share BSE Sensex was down 45.20 points at 33,644.89 and the 50-share NSE Nifty slipped 8.90 points to 10,116.
The market breadth also turned in favour of bulls as about 1,173 shares advanced against 1,040 declining shares on the BSE.
Gold Update
Gold prices held steady but remained on track to rise for the fourth straight week, the longest string of weekly gains since January, amid increasing worries over the outlook for US corporate earnings and global economic slowdown.
Asian shares slipped again today, despite a bounce on Wall Street overnight. Spot gold was little changed at $1,231.76 an ounce. It was up 0.5 percent for the week. US gold futures were up 0.2 percent at $1,234.60 an ounce.
Gold prices have gained about 6 percent after falling in mid-August to their lowest since January 2017 at $1,159.96 an ounce. Hwever, the yellow metal has declined about 10 percent from its April peak after investors preferred the dollar as the US-China trade war unfolded against a background of higher US interest rates. 
Earnings Performance
ZF Steering said its second quarter net profit degrew by 17 percent year-on-year to Rs 8.7 crore and revenue from operations declined 1 percent to Rs 109 crore.
EBITDA (earnings before interest, tax, depreciation and amortisation) plunged 27.1 percent to Rs 17.5 crore and margin contracted 580 bps to 16.1 percent compared to year-ago.
BHEL Under Pressure
Jefferies has maintained underperform rating on BHEL with a target price of Rs 70 per share. The stock fell over 2 percent on top of 7 percent correction in previous session.
The research house said Q2 results came in below expectations. "We do not see any upside surprise potential from debtor monetisation. We remain negative as there is no change in the outlook."
Crude Update:
Oil prices fell on last day of the week and were heading for a third weekly loss, pulled down as Saudi Arabia's OPEC governor said the market may become oversupplied soon and after a slump in global equities clouded the outlook for demand.
Brent crude futures were down 0.78 percent, at $76.29 a barrel. The global benchmark is on course for a weekly loss of over 4 percent.
US crude was down 1.05 percent, at $66.62 a barrel. The US benchmark is set for a 3.5 percent loss this week. 
ICICI Bank, ITC, Dr Reddy's Laboratories, UPL
Indian Overseas Bank, Edelweiss Financial Services, Aavas Financiers, Sintex Plastics Technology, Steel Exchange India, Greenlam Industries, Lloyds Steels Industries, Diligent Media Corporation, The Investment Trust Of India, Uniphos Enterprises, Astec LifeSciences, Capital First, Bharat Electronics, De Nora India,
Mawana Sugars, Kirloskar Oil Engines, PI Industries, PI Industries, Deepak Nitrite, Eros International Media, Hindustan Media Ventures, Shanthi Gears, Kokuyo Camlin, Godawari Power and Ispat, Foseco India, Atul, Nucleus Software Exports, Onward Technologies, Jindal Stainless, Mahindra Lifespace Developers,
Supreme Petrochem, TRF, Kolte-Patil Developers, Automotive Stampings and Assemblies, Shoppers Stop, TECIL Chemicals, Panama Petrochem, DB Realty, ARSS Infrastructure Projects, Subros, Coromandel International, Ruchira Papers.
Market Update:
Benchmark indices remained under pressure in late morning deals, though both were off their early trade lows. Banking & financials, technology and FMCG stocks weighed down the market.
The 30-share BSE Sensex was down 169.27 points to 33,520.82 and the 50-share NSE Nifty fell 57.50 points to 10,067.40.
Market Update:
Benchmark indices recovered more than half of losses on short covering in beaten down stocks.
The 30-share BSE Sensex was down 132.88 points at 33,557.21 and the 50-share NSE Nifty fell 48.10 points to 10,076.80.
The market breadth also improved as about five shares declined for every four shares rising on the BSE against 3:1 in opening.
ArcelorMittal buying Essar Steel?
Sources told CNBC-TV18 that Committee of Creditors (CoC) selected ArcelorMittal as the winner for buying Essar Steel.
ArcelorMittal has been asked by CoC to sign letter of intent for Essar Steel and the same will be notified by ArcelorMittal to London Stock Exchange today before market opening.
Nippon Steel told CNBC-TV18 that ArcelorMittal will be majority owner of Essar Steel with slightly higher stake.
PVR Under Pressure
Shares of PVR are down nearly 2 percent even as the company posted a healthy growth in its net profit for the September quarter.
The company said that its profit rose 33.5 percent (year-on-year) for the September quarter at Rs 33.02 crore. The company had reported a profit of Rs 25.17 crore during the corresponding quarter of last year.
Its revenue rose 28 percent at Rs 708.5 crore for the quarter under review against Rs 555.3 crore that it posted in Q2 of FY18.
At an operating level, the company posted an earnings before interest, taxes, depreciation and amortaisation of Rs 124 crore for the quarter, a rise of 35.6 percent year on year from Rs 91.5 crore last year.
Asia Update
Asian shares slipped again, deepening this week's markets rout, after disappointing results from Alphabet Inc and Amazon.com heightened concerns over the outlook for US corporate earnings, global trade and economic growth.
The wobbly start for regional bourses came despite a bounce on Wall Street overnight, which was helped by bargain-hunting and positive earnings from Microsoft Corp.
Predictably, the Nasdaq futures turned down 0.8 percent and Dow Jones futures fell 0.5 percent, underscoring broad worries about US corporate earnings, and the outlook for the economy, which triggered a plunge on Wall Street on Wednesday and sent global markets into a tailspin. Source: Reuters.
In Asia, Japan's Nikkei, Hong Kong's Hang Seng, and South Korea's Kospi were down 1-2 percent followed by China's Shanghai Composite which lost half a percent.
TVS Motor Company Bets Big On Argentina
TVS Motor Company unveiled their super premium offering TVS RR 310, the 125cc connected scooter TVS NTORQ 125 and the race machine TVS RTR 200 4V Race Edition 2.0 at Salón Internacional de la Motocicleta Argentina 2018 held in Buenos Aires.
TVS RR 310 is a super-premium motorcycle brand from TVS Motor Company.
Equitas Holdings, Ujjivan Financial In Action:
Boards of Equitas Holdings and Equitas Small Finance Bank (ESFBL) will meet next month to finalise steps to listing of the lender to meet the RBI regulations.
ESFBL, wholly-owned subsidiary of Eauitas Holdings, was granted licence to operate as small finance bank. Under the licensing norms, the bank has get listed within three years from the date of commencement of operations -- by September 4, 2019.
In view of the regulatory requirements, the boards of ESFBL and the company would be considering, in their ensuing board meetings scheduled on November 1, 2018 and November 2, 2018, respectively, "further steps to get the shares of ESFBL listed within the prescribed timelines".
They will also decided on approaching the RBI for an approval to merge Equitas Holdings with the bank at an appropriate time, post the lock-in period.
As per the RBI requirements, the promoter shareholding in the small finance bank has to be maintained at least 40 per cent, for a period of five years.
In case of ESFBL, the lock-in period ends on September 4, 2021.
Meanwhile, Ujjivan Financial Services, in regulatory filing, said it too would consider all appropriate measures to ensure the timely compliance of RBI directives regarding Ujjivan Small Finance Bank, which has to get listed by January 31, 2020. Source: PTI
Market Update
Benchmark indices extended losses in morning with the Nifty trading close to psychological 10,000 levels, dragged by weak Asian cues.
The 30-share BSE Sensex was down 310.48 points at 33,379.61 and the 50-share NSE Nifty fell 106.10 points or 1.05 percent to 10,018.80.
Yes Bank, Indiabulls Housing, JSW Steel, NTPC and Hindalco were top losers among Nifty50 stocks, down 3.5-6 percent whereas Tata Motors and GAIL gained a percent each.
Yes Bank Sinks 15%:
Yes Bank shares plunged 15 percent in early trade after the bank said it has a loan exposure to subsidiaries of crisis-hit group Infrastructure Leasing and Financial Services (IL&FS) worth Rs 2,620.7 crore.
The mid-size lender posted a 3.8 percent drop in net profit and disclosed that it has a gross outstanding exposure which is entirely "standard" as of September 30, 2018 as per Reserve Bank of India’s (RBI) Income Recognition and Classification norms.
"Currently these accounts are all standard. The exposures are at the lower SPVs and not at the upper IL&FS holding company levels. The SPVs each one of them will have to be dealt with their own merit in terms of what the underlying performance of the underlying asset is and at the moment we continue to be satisfied with our exposure to IL&FS which does not require provisioning," said Rajat Monga, Senior Group President, Financial Markets at Yes Bank.
Market Opening:
Equity benchmarks opened sharply lower on Friday morning with the Nifty breaking 10,100 levels amid weak Asian cues.
The 30-share BSE Sensex was down 167.16 points at 33,522.93 and the 50-share NSE Nifty declined 51.70 points or 0.51 percent to 10,073.20.
Nifty Midcap index fell half a percent.
NBFC, PFC, Ujjivan Financial, Equitas Holding, Ceat, Crompton Consumer and Jubilant Foodworks were under pressure among midcaps. Biocon, Raymond, L&T Technology and Intellect Design gained 1-5 percent.
Fiscal Deficit Widens in H1FY19
The fiscal deficit of the Central government has widened in the first half of 2018-19 to 95.3 percent of the Budget Estimate (BE), mainly on account of slow growth in revenue collections, as per an official data released on Thursday. The deficit was at 91.3 percent of BE at September-end of the last financial year.
In actual terms, the fiscal deficit or gap between the total expenditure and receipts was Rs 5.94 lakh crore during April-September this fiscal.
The government has budgeted to cut fiscal deficit to 3.3 percent of GDP in 2018-19 from 3.53 percent in the previous financial year.
The fiscal deficit target for 2018-19 is Rs 6.24 lakh crore. Source: PTI
Market at pre-open: Pre-opening rates suggest a flat opening for the Nifty at the start of November series, while the Sensex is higher by around 85 points.
The Sensex is up 87.59 points or 0.26% at 33777.68, and the Nifty up 1.10 points or 0.01% at 10126.00.
ICICI Bank Q2 preview: The country's largest private sector lender, ICICI Bank, is likely to report a steep decline in the second quarter profit due to elevated provisions and weak treasury income, yet loan growth could support net interest income. Asset quality is expected to be stable with lower slippages and watchlist at the end of the September quarter.
The stock gained 1.8 percent year-to-date and rallied nearly 11 percent during the quarter on hopes of early resolution of Insolvency and Bankruptcy Code (IBC) cases.