Sunday, October 25, 2020

Stock Market Live: Market off day’s low, Nifty below 11,900; September WPI inflation at 1.32%

Stock Market Live: Market off day's low, Nifty below 11,900; September WPI inflation at 1.32%

Market Update: Nifty50 index dragged down by heavyweights- Maruti Suzuki, Tata Motors, Tech Mahindra, HCL Technologies and Kotak Mahindra Bank. 

Stock Update: Tata Consumer Products’ shares rose 3 percent to Rs 483.10 per share on the NSE after Motilal Oswal expected margin expansion to moderate in the near term as high cost tea inventory, which is procured by the company will be sold in the quarters to come (Q3FY21 and Q4FY21). It value TCP on an SOTP basis to arrive at target price of Rs 558. Maintain buy.

Stock Update: NTPC’s shares slipped nearly 5 percent to Rs 78.80 per share on the NSE after the company decided to raise Rs 4,000 through private placement of unsecured, non-convertible bonds in the form of debentures. The debentures will be raised at a coupon of 5.45 percent per annum with a door-to-door maturity of five years. The proceeds will be used for funding the company’s capex, refinancing existing loans and other general corporate purposes, said the company in an exchange filing.

Trending Stock: Karnataka Bank’s share price traded 4 percent to Rs 43.75 per share on the NSE after company reported a nearly 13 percent rise in net profit at Rs 119.44 crore for the September quarter as bad loans moderated. The bank had posted a net profit of Rs 105.91 crore in the July-September period of the previous fiscal. Total income rose to Rs 1,933.52 crore in the quarter under review, against Rs 1,902.41 crore in the same period of 2019-20.

Experts’ View: Ruchit Jain of Angel Broking feels one can go long on Jubilant Foodworks and Tata Chemicals. For Jubilant, he said to put a stop loss below Rs 2,280 for a target of Rs 2,390, and for Tata, he advised to place a stop loss of Rs 307 for a target of Rs 330.

SC to hear loan moratorium case today: The Supreme Court on October 13 adjourned its hearing on a batch of petitions seeking interest waiver during the loan moratorium period to October 14 (today).  The three judge bench comprising of Justices Ashok Bhushan, R Subhash Reddy & MR Shah assembled at 12 noon on October 13 and announced that the matter will be taken up at the end of board (i.e. after all other cases in the list have been heard).

Buzzing | Shares of Karnataka Bank rallied over 5 percent after the bank reported a nearly 13 percent rise in net profit at Rs 119.44 crore for the second quarter of fiscal 2021. The bank had posted a net profit of Rs 105.91 crore in the July-September period of the previous fiscal. NII grew at a healthy rate of 15% YoY and 7% QoQ, compared to stable advance growth. Sequentially NIM improved 19 bps and YoY jumped by 26bps to 3.08%. Improvement in NIM primarily led by a decline in the cost of funds

Buzzing | Wipro shares plunge over 6% after Q2 results

The share price of IT major Wipro Ltd plunged over 6 percent in the early trade on Wednesday after the company reported its earnings for the second quarter of fiscal 2021.

Brokerages believe that though the growth has recovered, bridging the gap with other players could take time as the company continues to have the weakest growth profile among its peers. Most brokerages are bearish on the stock.

Wipro reported a 3.1 percent rise in consolidated net profit at Rs 2,465.7 crore in Q2FY21 as against Rs 2,390.4 crore in the previous quarter. Read more here.

Tata Power | The company will develop 100 MW Solar Project in Dholera, Gujarat.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

Since the last couple of days, we have seen Nifty holding its support levels and not correcting much; but if we look at the banking index, it has shown some weakness and hence, if Nifty has to surpass 12000, the banking stocks need to participate once again. Also, only a handful of heavyweight stocks have lifted markets higher in the last couple of weeks, but the midcap stocks remained quiet. In fact, in the last couple of sessions, we have seen some decent correction in the broader market, which is not a good sign. Hence, if the rally is to be called the robust one, the Nifty Midcap index needs to breakout from the recent congestion zone. One needs to keep a close track on these scenarios and wait for the midcap index to breakout to place aggressive bets in the broader market.

Jaikishan Parmar – Sr. Equity Research Analyst, Angel Broking Ltd

Karnataka Bank reported a mixed set of numbers for Q2FY21. Advance largely remained stable YoY and QoQ, growth primarily comes from retail and mid-size corporate. Management Indicated for FY21 advance would remain stable, retail and mid-size corporate book would grow but the large corporate book to decline. NII grew at a healthy rate of 15% YoY and 7% QoQ, compared to stable advance growth. Sequentially NIM improved 19 bps and YoY jumped by 26 bps to 3.08%. Improvement in NIM primarily led by a decline in the cost of funds. PAT grew at 12.8% YOY & plunged 39.2% QOQ to Rs119.4 crore. Banks Moratorium book declined from 51.12% in Q1FY21 to 11.40% in Q2FY21. The aggregate COVID-19 provision of Rs 97.99 crore has been continued in Q2FY21. The COVID provision is less compared to other banks.

Currently, Karnataka Bank is trading at 0.22x of trailing book value, Which is lower compared to the historical average. Almost no growth in advance for the last 6 quarters, low CAR ratio, and Moderate RoE for Many quarters could be the reason for depressed valuation. The stock would consolidate till the investor get clarity on restructuring percentage from the moratorium book.

Rupee Opens | The Indian rupee opened lower against the US dollar on Wednesday.

Technical View | The Nifty seems to be facing some selling pressures around the 11,950-11,975 zone. While the trend remains positive, it is suggested that traders book profits on their long positions if 11,800 breaks. An entry at lower levels can always be used to re-enter the current uptrend. Considering the one-way rally we have witnessed, there could always be some profit booking. However, one should look at building long positions in this market, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.

Stock Update: Sun Pharma Advanced Research Company (SPARC) shares rose as much as nearly 3 percent to Rs 173.5 after it reported positive top-line results from its Phase 3 trial for its investigational drug, SDN-037, for the treatment of Inflammation and Pain associated with Ocular Surgery. The trial met its pre-specified primary and secondary objectives, demonstrating that SDN-037 is superior to its vehicle, said the exchange filing. 

Markets have more upside than downside: BlackRock CEO Fink

Strong support from accommodative central banks across the globe and potentially another large round of fiscal stimulus both in the United States and Europe mean financial markets have more upside than downside, BlackRock Inc Chief Executive Larry Fink said on October 13. Globally, investors remain under-invested, Fink said in an interview.

“With central banks’ behaviors being very accommodative, with I believe, another very large round of fiscal stimulus in the United States and Europe … these are the great foundational reasons why markets have more upside than downside,” Fink said. (Source: Moneycontrol)

Opening Bell: Indian indices opened flat on October 14 with Nifty holding above 11,900. At 09:16 am, the Sensex was down 41.48 points or 0.10 percent at 40,584.03, and the Nifty was down 21.10 points or 0.18 percent at 11,913.40. The Nifty Bank index opened lower ahead of the loan moratorium case hearing at Supreme Court. Wipro’s shares fell nearly 5 percent post Q2 earnings.About 429 shares have advanced, 477 shares declined, and 52 shares are unchanged.

Broader markets, Nifty Smallcap100 and Nifty Midcap100 also traded marginally lower.


Among sectoral indices, the Nifty IT, Nifty Private Bank and Nifty Financial Services fell the most while buying was witnessed in Nifty Metal, Nifty Pharma and Nifty Realty

RBI releases FAQs on one-time loan restructuring scheme for COVID-19 related stress

Reserve Bank of India has released a set of frequently asked questions on the one-time loan restructuring scheme announced on August 6, and the subsequent recommendations of the KV Kamath-led committee on the issue. The scheme allows banks to restructure loans of borrowers that were regular in their repayments and did not have more than 30 days overdue as of March 1, 2020, without downgrading their asset classification to a non-performing asset. Continue reading

Delisting from bourses: History shows investors don’t part with shares easily


The initial months of the financial year 2021 (FY21) saw a slew of delisting offers announced by India Inc. Vedanta and Adani Power announced their delisting proposals in May while Hexaware and Allcargo made the announcements in June and August, respectively. While Adani Power and Allcagro’s delisting proposals are still awaiting shareholders’ approval, here’s a look at the other two – Hexaware and Vedanta.

Baring PE could successfully delist Hexaware, but Anil Agarwal ran out of luck to delist Vedanta from Indian bourses. Click here to read

Important Update: Bharat Biotech cuts Covaxin Phase 2 trial size by half

In an unprecedented move, vaccine maker Bharat Biotech has cut the size of Phase-2 clinical trial of its COVID-19 vaccine Covaxin by half. Instead of testing the vaccine candidate on 750 healthy volunteers, as per the earlier approved protocol, the company will now be dosing just 380 volunteers, sources told CNBC-TV18. The number of sites conducting the trials has also been reduced accordingly.

While confirming the development, two lead trial investigators told CNBC-TV18 that the decision was based on good seroconversion or immunogenicity seen in volunteers in Phase 1. Click here to read more

Asian equities slip as vaccine trials, stimulus talks stall

Asian equities slipped on Wednesday as halted COVID-19 vaccine trials and an impasse in U.S. fiscal aid package talks soured risk appetite, while the greenback held on to gains as demand firmed for safe-harbour assets.

Johnson & Johnson on Tuesday said it was pausing a COVID-19 vaccine trial due to a study participant’s unexplained illness.

Eli Lilly and Co later said it too had paused the clinical trial of its COVID-19 antibody treatment due to a safety concern, leading the U.S. equity market to deepen losses.

J&J shares lost 2.3 percent, while Eli Lilly closed down nearly 3 percent.

MSCI’s broadest index of Asia-Pacific shares outside of Japan fell 0.2 percent. Japan’s Nikkei dipped 0.2 percent while Australia’s benchmark index was off a touch and South Korea stumbled 0.7 percent.

Also weighing on sentiment, hopes for the passage of a new coronavirus relief package faded as U.S. House Speaker Nancy Pelosi rejected a $1.8 trillion relief proposal from the White House.

“U.S. stimulus talks are still going nowhere dimming the prospect of a new round of support this side of the election,” said Sydney-based NAB strategist Rodrigo Catril.

E-mini futures for the S&P 500 were up slightly in early Asian trading. (Source: Reuters)

To read the top stocks to watch out for the day, click here!

Welcome to our market blog!

Hi, this is Mousumi Paul from the desk team of CNBC-TV18. I will be taking you through all the updates on the state of economy, stock market and the corporate world. To begin with, let’s see how the market fared yesterday. The Indian ndices pared gains to end on a flat note on Tuesday as losses in bank, financials and pharma sectors were capped by gains in IT stocks and heavyweight Reliance Industries. HDFC Bank, ICICI Bank, HDFC, ITC and Axis Bank were the top contributors to the losses to the benchmarks. The Sensex ended 32 points higher at 40,625 while the Nifty rose 3.5 points to 11,934.50. Read more

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