4TH November 2020 Highlights: Markets end green again, Q2 results corner, close match in America, & more.
-4th November 2020-
Sensex 40,616.14 ▲ 0.88%
Nifty 11,908.50 ▲ 0.80%
The Nifty50 was on a roller-coaster ride today. The markets ended up by around 0.84%. The markets were in the green for most of the day but it did go in the red for a short while. After opening in the green, the country’s flagship index saw a knee-jerk fall of ~160 points. However, the markets recovered lost ground quickly. The rise was fueled by a recovery in banks (primarily after the SBI results) and the buying interest in Reliance Industries. Among the sectoral indices, the Nifty Pharma (+2.1%) and Nifty IT (+1.7%) indices gained, whereas the Nifty Realty (-1.8%) and Nifty Metal (-0.3%) indices ended in the red. Meanwhile, the USD/INR gained nearly 0.5% amid uncertainty over the US election outcome.
The US election results which are due soon seemed to be influencing the markets too. Currently, Joe Biden is leading with 238 seats while Donald Trump has 213 seats so far.
Top Gainers (Nifty)
Top Losers (Nifty)
Here are the top stories of the day.
Q2 Results: State Bank of India
State Bank of India's (SBI) net profit stood at Rs 4,574.16 crores in the July to September quarter. This is a 51.9% rise from the same quarter last year.
The bank encountered a one-time gain of Rs 3,484 crores in the quarter from its stake sale in SBI Life Insurance.
Net interest income (NII) for the quarter rose 14.56% to Rs 28,181 crores.
Savings account balances rose 16.28%.
The bank's deposit base at the end of September 30, 2020, was at Rs 34.7 lakh crores.
SBI reported a 52% year-on-year rise in its Q2 net profit to ₹4,574 crore, which was higher than street estimates of around ₹3,600 crore. The sharp rise in profit was the result of higher net interest income and lower provisioning in the quarter. The gross non-performing asset ratio reduced to 5.28% in Q2FY21 from 7.19% during the same period last year, suggesting an improvement in asset quality. The bank mentioned that loan disbursements to retail borrowers is nearly back to pre-Covid levels. Shares of SBI, which were trading in the red before the results, recovered later and ended the day with a gain of 0.3%.
Asset Quality
Gross non-performing assets (GNPA) stood at 5.28% as compared to 7.19%. It stood at 5.44% in the April to June quarter.
Net NPA stood at 1.59% as compared to 2.79%. It stood at 1.86% in the April to June quarter.
The shares of the bank ended 1.1% higher at Rs 207 per share. Results were declared at least two hours before markets closed.
PVR firms up despite weak results
PVR reported a net loss of ₹184 crore in Q2 as compared to a net profit of ₹48 crore a year ago. Of course, the results are not comparable with that of last year because the company’s core exhibition business had nearly zero revenues due to lockdown restrictions. Further, the company had to pay fixed costs (e.g. employee expenses and finance costs). However, there are signs of change. Nearly 70% (over 575 out of 831) screens have received permission to reopen, albeit at 50% capacity. Second, the company has negotiated a complete rent waiver for the lockdown period at nearly 60% of its cinemas and reduced rent/revenue share after opening. It is also in similar discussions with other property owners for the remaining cinemas. Investor confidence seems to have revived after these developments as the stock was up nearly 8% intraday, and closed the day with a gain of 0.9%. PVR’s competitor Inox Leisure, which will declare its results tomorrow, also gained 1.8%.
Gland Pharma IPO to hit D-Street
Hyderabad-based Gland Pharma Ltd will go public on 9 November (Monday). In FY20, the company, which manufactures medical injectables, earned around 65% of its revenue from the US and around 18% from India. The issue is priced at ₹1,490 to ₹1,500 per equity share. The total issue size is approx. ₹6,480 crore, which includes a fresh issue of about ₹1,250 crore and an offer for sale from its promoters, namely China-based Fosun Pharma Industrial Pte Ltd and Indian company Gland Celsus Chemicals Pvt Ltd. This will be the twelfth IPO of 2020. Of the 11 IPOs so far, 9 have given positive returns.
U.S. Elections: Counting Still On
The counting of votes in the US elections is on as of this moment.
This is a very crucial election as it will decide if Donald Trump stays on as president or is replaced by Joe Biden.
The counting so far indicated that Joe Biden is ahead with 238 seats while Donald Trump is trailing with 213 seats (according to The Associated Press).
Whoever reaches 270 seats will win.
In the midst of this, while the counting is still on, Donald Trump has claimed victory stating that he has enough votes and that he’d go to court for “fraud” in the counting of votes.
Joe Biden countered him stating that he was confident of a victory.
The results of this election are crucial as it impacts global trade and policies.
Directly or indirectly, the US elections affect nearly all of the global economy.
Serum Institute CEO Says Vaccine in India by Jan 2021
Adar Poonawalla, CEO of Serum Institute of India has said that if the vaccine is approved on time, the vaccine will be available in India starting January.
Serum Institute is the Pune-based company manufacturing the vaccine developed by AstraZeneca & Oxford University.
The vaccine is currently in its final stage of trials (phase 3) and results from the trials are slated to be made public in the next few weeks.
There are signals that the approval might take place before Christmas this year.
According to the CEO, the vaccine has shown no adverse signs so far during the trials conducted indicating that it might be approved without hurdles.
Services PMI Climbs in October
The services PMI rose to 54.1 in October from 49.8 in September. This is the highest since February.
PMI stands for Purchasing Managers' Index.
What is PMI?
PMI is an indicator of business activity and is calculated separately for the manufacturing and the services sectors.
It tracks variables such as sales, employment, prices, and inventories.
A figure above 50 indicates that the services sector is expanding; below 50 indicates that it is declining.
Closing bell
India’s services PMI expanded (i.e. reading above 50) for the first time since March 2020. This suggests a pick-up in the country’s services sector. Meanwhile, in the US, it seems that the outcome of the presidential election could get dragged especially after President Trump disputed the counting of votes.
Daily Change: 1-Day Change
Long Term: 20-Year Returns
Returns are in INR for Sensex & Nifty and in USD for Dow Jones & Nasdaq.
HAPPY INVESTING!
SEE YOU TOMORROW
Post a Comment
Post a Comment