29th October 2020 Highlights: Markets end down, Q2 results corner, Air India bid extended, & more.
-29th October 2020-
Sensex 39,749.85 ▼ 0.43%
Nifty 11,670.80 ▼ 0.50%
The markets ended down by 0.46%. The day was very choppy - lots of ups and downs. The day started in the red, went in green, and then ended in the red.
The markets started the day on a weak note and briefly moved into the green before slipping back into negative territory. Most sectoral indices declined on the monthly derivative expiry day. The Nifty IT index (+0.3%) was the sole gainer, while the Nifty Media (-1.8%) and Nifty Auto (-0.9%) indices suffered the most. L&T (-4.8%), Titan (-3.2%) and Adani Ports (-2.9%) were the top losers while Asian Paints (3.0%), Tech Mahindra (2.2%) and Ultratech (1.8%) were top gainers in the Nifty50.
Top Gainers (Nifty)
Asians Paints Rs 2225.45 ▲ 3.05%
UltraTech Cement Rs 4576.80 ▲ 2.41%
Shree Cement Rs 21677.00 ▲ 1.48%
HCL Tech Rs 839.85 ▲ 1.24%
Kotak Mahindra Rs 1571.05 ▲ 1.21%
Top Losers (Nifty)
L&T Rs 934.60 ▼ 4.99%
Titan Rs 1177.50 ▼ 3.32%
Adani Ports Rs 342.90 ▼ 2.98%
ONGC Rs 64.40 ▼ 2.94%
Axis Bank Rs 493.70 ▼ 2.21%
Here are the top stories of the day.
Q2 Results: Maruti Suzuki, Bharat Petroleum, Vodafone Idea, Indigo
Maruti Suzuki
Maruti's standalone net profit was reported at Rs 1,371.6 crores. This is a 1% increase from the same quarter previous year.
The company's revenue from sales rose 9.7% to Rs 17,689.3 crores.
Maruti sold 3.93 lakh vehicles during the quarter, higher by 16.2% when compared to the same period last year.
Domestic sales: Up 18.6% to Rs 3.7 lakh units
Exports: Fell 12.7% to 22,511 units.
The shares of the company ended 0.95% lower at Rs 7,117.7 per share today. The results were declared at 2.00 p.m.
Bharat Petroleum
The consolidated net profit of the company rose 58.44% to Rs 2,589.52 crores in the period under review.
This is accompanied by a 16.25% fall in total expenditure to Rs 62,436.9 crores.
Revenues of the company fell 12.29% to Rs 66,331.22 crores.
The average gross refining margin (GRM) from April to September was $3.19 per barrel as compared to $3.10 per barrel in the same period last year.
The shares of the company ended 1.06% lower at Rs 341.8 per share. Results were declared at 1.30 p.m.
What is GRM?
GRM is what refiners make from turning every barrel of crude into finished products.
Vodafone-Idea
Vodafone-Idea reported a net loss of Rs 7,218 crores as compared to a loss of Rs 50,921.9 crores in the same quarter last year. The net loss was at Rs 25,460 crores in the April to June quarter.
Revenue from operations fell 0.49% to Rs 10,791.20 crores.
The average revenue per user (ARPU) increased to Rs 119 from Rs 107.
The shares of the company fell 4.02% to Rs 8.35 per share.
Pandemic dents L&T’s Q2 results
L&T’s consolidated Q2 revenues from operations dropped 12.2% on a year-on-year basis as the pandemic impacted operations. However, sequentially revenues are up 46% indicating a pickup in momentum, with labour at various project sites back to pre-Covid levels. The company’s net profit (before exceptional items) fell 45% as compared to the same period last year owing to lower revenue, disruption of metro services and higher provisions in the financial services business. The stock was down 4.8% today as investors chose to book profits, especially after the 9% rise seen this month till yesterday (versus 4% rise in the Nifty50). The company mentioned that if the current moderation in Covid cases is sustained (along with a vaccine in sight), recovery could gather pace. The buzz over stimulus 4.0 (with infrastructure focus) could help in improving investor sentiments if the stimulus goes through.
Axis Bank falls on profit-booking
Axis Bank’s Q2 results were above expectations and the bank delivered net profit of ₹1,683 crore (versus a net loss of ₹112 crore last year). However, profit-booking hit the stock, which had already risen 19% in October ahead of the results. Shares of Axis Bank were down 2.3% today. The bank’s Q2 net interest income grew by 20% on a year-on-year basis to ₹7,326 crore, as steady growth in deposits helped loan growth. Further, asset quality improved with gross non-performing asset ratio falling to 4.18% from 5.03% in the previous year. The figures would be slightly higher at 4.28%, considering the Supreme court’s order related to NPAs. While the scenario looks promising as major large banks have delivered a good set of numbers for Q2, hopes are pinned on how the business grows in the second half of the fiscal.
Crude oil slips on weak demand outlook
This week, crude oil prices are down ~6%, with the demand outlook again looking weak. The second wave of coronavirus infections in Europe and the US is triggering fresh lockdowns, which could lower the demand for oil. Further, the recent data release shows that US crude inventories are highest since July, indicating excess supply. Fading hope of a fresh stimulus in the US, in the near term, is not helping either. Given the above scenario, it is not surprising that crude oil prices have fallen drastically this week, even as two-thirds of the US Gulf crude oil production is shut due to Hurricane Zeta.
Interglobe Aviation (Indigo)
The company reported a net loss of Rs 1,194.80 crores as compared to a loss of Rs 1,062 crores a year ago.
The airline's total income fell 64.5% to Rs 3,029.2 crores.
Their fleet rose by 8 aircraft to 282 during the quarter. The company operated 823 daily flights during the quarter including charter flights.
Interglobe Aviation is the parent company of IndiGo.
The shares of the company ended 2.88% higher at Rs 1,330.9 per share. Results were declared after market hours.
Deadline to Bid for Air India Might be Extended
According to some news reports, the government is likely to extend the deadline to bid for Air India.
The current deadline ends on Oct 30, 2020.
The government is looking to sell its entire stake in the airlines which is burdened with heavy debt.
The deadline to bid for this airline has been extended multiple times during this pandemic.
Closing bell
Investor confidence appears to be shaky at the moment and resonates with what is happening in the global equity markets. The Dow Jones in the US (-6.4%), Germany’s DAX (-8.2%) and France’s CAC (-6.6%) are all down this week. One could expect volatility to rise in the markets tomorrow as four US tech giants (Apple, Amazon, Google and Facebook) will announce September quarter results today evening (India time). Further, index heavyweight Reliance Industries will report its Q2 earnings tomorrow. We’ll bring you all the details!
Daily Change: 1-Day Change
🥇 Gold: Rs 50,310 ▼ 0.38% at 6 PM
🥈 Silver: Rs 58,775 ▼ 3.69% at 6 PM
🔀 USD-INR: Rs 74.10/USD ▲ 0.30%
Dow Jones: 26,519.95 ▼ 3.43 % - Oct 28
Nasdaq: 11,004.87 ▼ 3.73 % - Oct 28
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