Indices break 7-day winning streak; Midcap index down 1%

05 Nov 2019

Titan Company Q2:Titan Company reported a muted 1.8 percent growth in second quarter profit at Rs 320.2 crore due to subdued growth in jewellery business which contributes 80 percent to revenue. Profit in September quarter 2018 stood at Rs 314.4 crore.

Revenue during the quarter grew by 0.6 percent year-on-year to Rs 4,435 crore, company said in a BSE filing. Jewellery business revenue fell 1.5 percent to Rs 3,528 crore compared to year-ago and its earnings before interest and tax (EBIT) declined 2 percent and margin contracted 5bps YoY.

However, revenue from its watches segment grew by 6.4 percent to Rs 718.7 crore, but its EBIT dropped 6.9 percent and margin plunged 220bps YoY during the quarter.

Tech Mahindra Q2: Net profit rises 17 percent at Rs 1,124 crore while Revenue went up 4.8 percent at Rs 9,070 crore against Rs 8,653 crore QoQ.

Market at close: Sensex ended 53.73 points or 0.13% at 40248.23 in the red, and the Nifty closed 24.10 points lower at 11917.20. About 996 shares have advanced, 1448 shares declined, and 178 shares are unchanged.

Bajaj Finance, YES Bank and Bharti Airtel are the top gainers while Zee Entertainment and IndusInd Bank dragged.

JMC Projects Q2: Consolidated net profit grew 39.8 percent at Rs 14.4 crore against Rs 10.3 crore YoY. Consolidated revenue went up 27.2 percent at Rs 976.6 crore against Rs 767.8 crore YoY. Consolidated EBITDA was up 23.9 percent at Rs 126.7 crore against Rs 102.2 crore YoY while consolidated EBITDA margin stood at 13 percent against 13.3 percent YoY.

Tata Motors October Auto Sales: JLR UK October sales went down 20.4 percent at 8,168 Units against 10,266 units YoY. Jaguar UK sales was down 27.3 percent at 2,416 units against 3,324 units YoY. Land Rover UK sales was lower by 17.1 percent at 5,752 units against 6,942 units YoY.

Berger Paints Q2: Consolidated net profit grew 67.2 percent at Rs 194.6 crore against Rs 116.5 crore YoY. Consolidated revenue rose 7.3 percent at Rs 1,598.6 crore against Rs 1,490 crore YoY. Consolidated EBITDA was up 14 percent at Rs 251.1 crore against Rs 220.4 crore YoY while consolidated EBITDA margin stood at 15.7 percent against 14.8 percent YoY.

NCC Q2: Net Profit went down 36.3 percent at Rs 80 crore against Rs 125.6 crore YoY while revenue was lower by 44.2 percent at Rs 1,732 crore against Rs 3,105 crore YoY. EBITDA slipped 36.2 percent at Rs 233 crore against Rs 365.1 crore YoY while EBITDA margin stood at 13.4 percent against 11.8 percent YoY.

India gold demand to hit three-year low as prices surge to record:

India's gold demand is expected to fall to its lowest level in three years in 2019, the World Gold Council (WGC) said on November 5, as domestic prices climb to a record against a backdrop of falling earnings in rural areas, a key source of custom for the precious metal.

Gold demand in 2019 could drop 8 percent from a year ago to around 700 tonnes, the lowest since 2016, said Somasundaram PR, the managing director of WGC's Indian operations.

In a report, the WGC said India's gold consumption in the quarter ended September slumped nearly a third from a year ago to 123.9 tonne.

PNB Q2 profit at Rs 507.1 cr; asset quality weakens, provisions rise QoQ

Punjab National Bank has reported a profit at Rs 507.1 crore in Q2FY20, with further weakening in asset quality sequentially. Numbers were better than the poll of analysts conducted by CNBC-TV18 which had estimated the bank to report loss at Rs 1,521.5 crore. The company had reported a loss of Rs 4,532.35 crore in year-ago period due to sharp spike in provisions.

Net interest income during the quarter increased 7.3 percent year-on-year to Rs 4,263.8 crore. Asset quality deteriorated in quarter ended September 2019 with gross non-performing assets (NPA) as a percentage of gross advances rising 27bps QoQ to 16.76 percent and net NPA climbing 48bps to 7.65 percent QoQ.

Provisions and contingencies for the quarter stood at Rs 2,928.9 crore, rising 48 percent QoQ but fell 70 percent YoY.

Dabur India Q2: Dabur India reported 7 percent YoY jump in its Q2FY20 consolidated net profit at Rs 403 crore against Rs 376.6 crore. The net profit was impacted by one-time impairment in value of investments to the tune of Rs 40 crore, company said in release. Revenue was up 4.1 percent at Rs 2,212 crore against Rs 2,125 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8.6 percent at Rs 489.5 crore versus Rs 450.9 crore. The EBITDA margin was up at 22.1 percent, YoY. The domestic FMCG business reported an underlying volume growth of 4.8 percent during the quarter.

Rupee Update: The Indian rupee erased morning losses and trading higher at 70.71 per dollar, with selling seen in the domestic equity market as Nifty trading below 11,900.

Prism Johnson Q2: Consolidated net loss came in at Rs 28.8 crore against loss of Rs 0.9 crore YoY. Consolidated revenue grew 1.2 percent at Rs 1,419 crore against Rs 1,402 crore YoY.

Consolidated EBITDA went down 14.6 percent at Rs 90.7 crore against Rs 106.2 crore YoY while consolidated EBITDA margin stood at 6.4 percent against 7.6 percent YoY.

Godrej Properties Q2: Consolidated net profit grew 66.2 percent at Rs 34.2 crore against Rs 20.6 crore YoY while consolidated revenue went down 34 percent at Rs 259.7 crore against Rs 393.2 crore YoY. Profit before tax stood at Rs 72.9 crore against Rs 3.6 crore YoY.

Consolidated EBITDA came in at Rs 24.7 crore against EBITDA loss of Rs 11.6 crore YoY while consolidated EBITDA margin stood at 9.5 percent.

CreditAccess Grameen share price jumps 7%, hits record high

Shares of CreditAccess Grameen rallied 7 percent intraday to hit a record-high of Rs 715 on November 5 on raising funds from a Netherlands-based finance company.

The microfinance institution informed exchanges that the Executive, Borrowings and Investment Committee in a meeting today finalized the terms of issue of unlisted, unrated, senior secured, redeemable, transferable non-convertible debentures of Rs 10 lakh each to Nederlandse Financierings Maatschappij Voor Ontwikkelingslanden N.V. (FMO) on preferential basis.

Globe Research view on Bullion:

We continue to hold our bullish stance in bullion prices but better than expected US job figures may weaken the expectation of further rate cut in December meeting which may trigger some profit booking in yellow metal.

Although, medium to long-term prospects still remains bullish based on continuing tensions in the Middle East along with easy money central bank policies, as well as persistent China -US tariff conflicts and worries about slowing global economic growth.

Bajaj Finance gains 2% on reports of QIP subscribing 5 times

Shares of Bajaj Finance gained 2 percent intraday on November 5 after a media report indicated that company's QIP received huge subscription from investors.

Qualified institutional placement issue launched on November 4 received five times subscription, reports CNBC-TV18 quoting unnamed sources.

Special Committee of the Board yesterday approved raising of capital through a qualified institutions placement (QIP) for an aggregate amount not exceeding Rs 8,500 crore by issue of equity shares and/or eligible securities. The floor price has been fixed at Rs 4,019.78 per share.

Gold price today: Yellow Metal down on trade optimism

Gold futures fell in early trade on November 5 as hopes of a U.S.-China trade pact bolstered the dollar and increased appetite for riskier assets.

Gold December futures were trading with a negative bias at Rs 38,375 per 10 gram at 09:10 hours IST.

Experts feel the trend in gold prices witnessed some profit-taking on the rise in US dollars. In the domestic markets, the level of 38,300 on MCX should hold, and investors should look at buying on dips for a target of 38,500.

Biocon rises 3% after co receives EIR from USFDA

Shares of Biocon added over 3 percent in the early trade on November 5 after company received EIR from the USFDA. The company received establishment inspection report (EIR) from the the US Food and Drug Administration for its biologics drug product facility in Bengaluru, stating the inspection is closed, as per company release.

This reaffirms company biologics’ Global scale manufacturing capability for high quality, affordable biosimilars for the US market.

Yes Bank gains nearly 9% after Jhunjhunwala buys stake for Rs 86.89 crore

Shares of private lender Yes Bank rose nearly 9 percent in the early trade on November 5 after Rakesh Jhunjhunwala bought stake in the company via open market transactions. Ace investor Rakesh Jhunjhunwala bought 1.29 crore shares in private lender on November 4 through open market transactions.

According to bulk deal data available with the BSE, Jhunjhunwala bought 12,950,000 shares of the private lender, that translates to around 0.5 percent stake in the bank. The shares were bought at an average price of Rs 67.1, taking the transaction to Rs 86.89 crore.

Market Opens: The Sensex is up 48.83 points or 0.12% at 40350.79, and the Nifty up 9.50 points or 0.08% at 11950.80. About 643 shares have advanced, 384 shares declined, and 50 shares are unchanged.

Auto and pharma stocks ate the top gainers while FMCG stocks dragged. Most active shares on NSE included YES Bank, HDFC, Bajaj Finance, Infosys and SRF.

Amar Ambani, Head of Research – Institutional Equity at YES Securities: I am quite relieved that India has not hurriedly signed the RCEP trade agreement. Unless its clear on what we're getting into and its long term advantage, there's no point of entering a deal. Free Trade agreements (FTA) are the main reason why India has suffered on trade balance.

While Indian exports still faced a lot of barriers at home which made them uncompetitive, other countries, penetrated the Indian market. There was looming concern that RCEP would have resulted in dumping of cheap China steel, for instance.

Market at pre-open: Benchmark indices are trading higher in the pre-opening session on November 5 with Nifty near 12,000 level.

At 09:01 hrs IST, the Sensex is up 114.67 points or 0.28% at 40416.63, and the Nifty up 52.10 points or 0.44% at 11993.40.

Biocon receives EIR from USFDA: The company has received establishment inspection report (EIR) from the the US Food and Drug Administration for its biologics drug product facility in Bengaluru, stating the inspection is closed.

Crude Update: Oil prices slipped on Tuesday amid doubts over whether OPEC and other countries will continue to restrain output, edging lower after two days of gains on US economic data and hopes for a Washington-Beijing trade deal.

94 companies to report Sept quarter results

On the earnings front, as many as 94 companies will declare their results for the September quarter which include names like Ajanta Pharma, Apollo Tyres, Berger Paints, Birla Corp, Dabur India, Divi's Laboratories, EIH, Gillette India, Godrej Properties, HCL Infosystem, JSPL, PNB, REC, Tech Mahindra, Torrent Power, and Titagarh Wagons among others.

Global stocks gain on trade hopes, risk appetite lifts dollar

The dollar strengthened and global stock markets rallied on Monday on signs the United States and China are nearing the end of a damaging trade war as well as indications the world economy may dodge a recession.

The Dow Jones Industrial Average rose 114.75 points, or 0.42%, to 27,462.11. The S&P 500 gained 11.36 points, or 0.37%, to 3,078.27 and the Nasdaq Composite added 46.80 points, or 0.56%, to 8,433.20.

Asian shares rally on US-China trade deal hopes

Asian shares closed in on their July peak on Tuesday on increasing signs the United States and China are inching closer to a truce in their trade war and on optimism the US economy is well poised for solid, consumer-driven growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade after hitting a four-month high the previous day. Japan's Nikkei rose 1.34% to one-year high after a market holiday on Monday.

Oil edges lower amid doubts over OPEC cuts

Oil prices slipped on Tuesday amid doubts over whether OPEC and other countries will continue to restrain output, edging lower after two days of gains on US economic data and hopes for a Washington-Beijing trade deal.

Brent crude futures were down 14 cents, or 0.2%, at $61.99 a barrel, having gained 0.7% in the previous session. US crude futures were down 18 cents, or 0.3%, at $56.36 a barrel. They gained 0.6% on Monday.