30th October 2020 Highlights: Markets end down, Q2 results corner, Forex reserves at an all-time high & more.
-30th October 2020-
Sensex 39,614.07 ▼ 0.34%
Nifty 11,642.40 ▼ 0.24%
The markets opened in the green today but went down and remained in the red for most of the day. Weak global cues are being cited by many as the primary reason behind the market’s performance.
The markets witnessed a see-saw between gains and losses today. The Nifty50 was primarily supported today by heavyweight Reliance Industries, which rose 1.8% ahead of its Q2 earnings announcement. Among the sectoral indices, the Nifty Auto index (-1.1%) was the top loser and the Nifty Realty index (2.1%) was the top gainer. Coming to individual stocks, public sector enterprises BPCL (+3.5%), Coal India (+3.4%) and NTPC (+2.1%) hogged the limelight. The Nifty50 fell by 2.4% this week.
Top Gainers (Nifty)
Adani Ports Rs 359.85 ▲ 5.00%
BPCL Rs 354.45 ▲ 3.70%
Coal India Rs 114.2 ▲ 3.02%
Tata Steel Rs 410.55 ▲ 2.28%
Sun Pharma Rs 465.75 ▲ 2.06%
Top Losers (Nifty)
Bharti Airtel Rs 433.75 ▼ 3.78%
Hero MotoCorp Rs 2799.80 ▼ 3.26%
Eicher Motors Rs 2085.60 ▼ 2.40%
HUL Rs 2071.30 ▼ 2.39%
Maruti Suzuki Rs 6965.15 ▼ 2.14%
Here are the top stories of the day.
Q2 Results: Reliance Industries, Indian Oil Corporation (IOC), Indusind Bank
Reliance Industries (RIL)
The consolidated net profits of RIL fell to Rs 9,567 crores in the July to September. This is a 15% fall from the same quarter last year.
Revenue from operations fell 24.2% to Rs 1.16 lakh crores.
Reliance Jio
Reliance Jio's net profit rose 185% to Rs 2,844 crores during the period under review.
The revenue rose 33% to Rs 17,481 crores.
The average revenue per user (Arpu) of Rs 145 for the quarter against Rs 140.30 reported for the April to June quarter.
The shares of the company ended 1.36% higher at Rs 2,054.5 per share. The results were declared after market hours.
Indian Oil
Indian Oil's net profit rose to Rs 6,025.81 crores. This is a 13-time increase from the same quarter last year.
The total expenditure fell 18.78% to Rs 1.09 lakh crores.
Revenue from operations fell 13.39% to Rs 1.16 lakh crores.
The average gross refining margin (GRM) between April- September 2020 was $3.46 per barrel as compared to $2.96 per barrel, the same time last year.
The shares of the company ended 1.47% higher at Rs 79.55 per share. The results were declared during market hours.
What is GRM?
GRM is what refiners make from turning every barrel of crude into finished products.
Indusind Bank
IndusInd Bank's net profit fell 52.7% to Rs 663.08 crores.
The bank’s total income fell 1.6% to Rs 8,731.52. crores.
IndusInd Bank’s provisions rose 166% to Rs 1,964.44 crore.
Asset Quality:
Gross non-performing assets (NPA) ratio stood at 2.21% of the gross advances as compared to 2.19% in the same quarter last year.
Net NPA stood at 0.52% as compared to 1.12% of net advances.
The shares of the bank ended 0.51% lower at Rs 585.7 per share. Results were declared after market hours.
TVS Motors zooms ahead on margin expansion
The two-wheeler major reported a 6% year-on-year rise in standalone revenues from operations to ₹4,605 crore. What surprised the street was the margin expansion to 9.3% (versus 8.8% last year), which was contrary to a general expectation of a margin decline. The margins improved thanks to cost savings on employee expenses and lower other expenses, which include advertising and marketing expenses. The profit before tax and exceptional items stood at ₹267.4 crore, up 14% as compared to the same period last year. The stock surged +7.7% today, after having fallen nearly 10% this month until yesterday.
Realty sector builds up gains
As per reports, Tier 1 cities have registered a 60% rise in real estate sales in Q2 versus Q1. The recovery is the cumulative effect of multiple factors including discounts & offers given by developers, pent-up demand as lockdown restrictions ease, lower interest rates, and government support in the form of stamp-duty cuts in Maharashtra. These green shoots of recovery are providing much-needed respite to the sector, which has been struggling recently. Stocks such as Sobha (+5.4%), Godrej Properties (+4.1%) and DLF (+3.7%) saw gains today, in an otherwise subdued market.
Blue Dart takes off after strong Q2 results
Express logistics provider Blue Dart reported a modest standalone revenue growth of 8% on a year-on-year basis. However, its net profit nearly tripled to ₹41.3 crore (versus ₹13.9 crore last year) owing to stringent cost-control measures. On a sequential basis, the company bounced back to profits as it reported a net loss of ₹127.9 crore in Q1. The company is seeing its customers’ businesses coming back on track. Further, the management mentioned that the company is gearing up to provide logistics support to pharmaceutical companies and the government as and when a Covid vaccine becomes available. This logistics opportunity is enough to spark investor interest. The stock gained 13.3% today and has risen ~80% since the start of Q2.
India’s Forex Reserves Touch All-Time High
India’s forex reserves touched an all-time high of $560.53 billion. In the week that ended on October 23, the forex reserves were at $560.53 billion while the week previous to that, it was $555.12 billion.
Closing bell
The US stock markets saw a minor bounce yesterday as the quarterly GDP growth hit a record of 33.1%. The four big tech companies (Amazon, Apple, Facebook and Google) reported solid earnings for the September quarter. However, rising Covid cases and delays in fresh stimulus in the US are clearly acting as headwinds. Back home, the opening of the markets on Monday is likely to take cues from Reliance Industries’ Q2 results.
Daily Change: 1-Day Change
🥇 Gold: Rs 50,679 ▲ 0.73% at 6 PM
🥈 Silver: Rs 60,777 ▲ 3.40% at 6 PM
🔀 USD-INR: Rs 74.10/USD ▲ 0.00%
Dow Jones: 26,659.11 ▲ 0.52% - Oct 29
Nasdaq: 11,158.59 ▲ 1.64% - Oct 29
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