Tag: Bank Nifty

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Nifty Falls 210 Points, Results Season keeps on Surprising – Share Market Highlights Today

Today’s Market Summarised

Nifty opened at 11,680 with a slight gap-up today. The index went up making multiple green candles, but took resistance at 11,750 near yesterday’s high. From there the index fell sharply making lower lows and fell almost 210 points! After 1 pm, Nifty recovered a bit to close at 11,642, down 28 points or 0.24%.

Bank Nifty opened the day at 24,102 and up to take resistance near yesterday’s high at 24,279. The index fell from the highs beautifully, almost 700 points. The index tracking banks closed the day at 23,900, down 191 points, or 0.79%.

Metals went up after lunch to become one of the best performers. Realty also performed well today. Auto was the worst performing sector today.

All Asian markets are trading in losses. European markets are also trading in losses, at the time of market close.

News Picks

Shares of Vodafone Idea moved positively today even after yesterday’s bad results. Shares closed at Rs 8.75, up 4.79%. The company said they are not shy to take first step towards tariff hike. They are also expecting Rs 6,400 crores from Vodafone PLC on certain arrangement for AGR dues.

Reliance share price jumped in late market hours to close at Rs 2,054.50, up 1.36% for the day. The company is all set to release their Q2 results very soon, and any result is sure to cause volatility on Monday.

BPCL share prices jumped up 3.70% to Rs 354.45. Today the company said it is trying to close the divestment plan by the end of this financial year. The company had announced good results yesterday.

Angel Broking jumped 8.47% to Rs 353.35, after Kuwait Investment bought 4.3 lakh shares. IPO investors would be very happy with the stocks movements over the last few days.

Shares of TVS Motors jumped to Rs 455.50, up 7.85% after the company announced better than expected earnings yesterday. Margins have also been improving.

Blue Dart shares closed at Rs 3,696.30, up 13.82% after the company announced a profit jump of 190% YoY.

Shares of IOC jumped to Rs 79.55, up 1.47% after consolidated profits jumped 1187 % to Rs 6,025.8 crore vs Rs 468 crore YoY. Revenue is down 14% to Rs 1.16 lakh crore.

Telangana Govt has rolled out an EV Policy with a 10-year roadmap. Companies will get incentives such as exemption from road tax & registration. Carmakers like Tata Motors and MG Motors are ready with their India specific electric cars already.

Markets Ahead

Nifty was very volatile today, as expected. And it will continue to be. High volatility is leading to high premiums for options, as well making them very desirable to sellers. Watch out for Reliance results coming out today, along with the US Presidential Election on Tuesday. Yes, I know that I have been saying this many times. But I cannot stress the importance of this even more. Nifty may fly in either direction next week after the election, I think we are all done with the consolidation.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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Nifty Struggles to Go Up, Paint Stocks Perform – Share Market Highlights Today

Today’s Market Summarised

After opening with a huge gap-down, Nifty moved up in the morning to cover this gap. The index lost a bit of confidence between 10-11.30 am and consolidated but moved up again to take resistance near yesterday’s close at 11,744. The index fell after this and took support at day open range. Nifty closed the day at 11,670, down 58 points, or 0.50%. The index formed a green candle after closing above the day’s open level.

Bank Nifty opened the day at 24,075 and went on to take resistance near 24,340 near yesterday’s closing level. From there, the index fell beautifully to create a fresh day low of 23,816. The index closed at 24,092, down 140 points, or 0.58%. The index formed a doji in daily charts.

All major sectoral indices except Nifty IT closed in red today. Nifty Media fell the most today. Do not forget that every index opened with a big gap-down and that these gaps were covered.

Major Asian markets closed in red today. European markets are trading in green, at the time of market close.

News Picks

Shares of Pidilite closed as top-gainer to close at Rs 1,590.85, up 4.76% after it announced plans to acquire Huntsman unit for ₹2,100 crore.

Paints shares outperformed in a weak market today. Asian Paints closed at Rs 2,225.45, up 3.05% while Berger Paints closed at Rs 630, up 3.87%.

Laurus Labs reported a net profit of Rs 242 crores, up 330% YoY. Revenue jumped up 70% YoY to Rs 1,139 crores. Shares of the company jumped in late trade to close at Rs 329.95, up 2.29%.

Maruti Suzuki Ltd reported Q2 net profits at Rs 1,371 crores, up 1% YoY. Revenue increased 10.40% YoY. Share prices quickly fell after the results fell below estimates. Maruti closed the day at Rs 7,117.70, down 0.95%.

Shares of Piramal Enterprises fell to Rs 1,216, down 5.29% today. The company reported a net profit of Rs 628 crores, up 14% YoY yesterday. Share prices were down yesterday after the results, as well. It was the worst performing stock today.

BPCL reported a net profit of Rs 2,248 crores, up 31% YoY. This was seen beating all expectations, but profits were booked and share prices closed at Rs 343, down 0.71%.

L&T bags contract worth over Rs 7,000 crores to build India’s first High-Speed Rail Corridor. Yesterday, the company had announced its results which failed to impress investors, especially the dividend numbers. Share prices crashed 4.92% to close at Rs 934.50.

Tech Mahindra : HAL & TechM inked Rs 400 crore contract for Project Parivartan.

Markets Ahead

Nifty made a small green candle today, and covered most of the gap created. This has made me a bit confident, because even with such negative global sentiments from yesterday, the market did go up today. The US Presidential election is scheduled for the 3rd of November, and European lockdown measures are becoming more strict. France is having a complete national lockdown till December 1st and if multiple countries start following suit, we can expect more corrections in the global markets.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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Nifty Free Fall, Airtel Top Gainer – Share Market Highlights Today

Today’s Market Summarised

Nifty opened at 11,730 and went up to take a good resistance near yesterday’s high. What you can get here is a clear understanding of how supports and resistances work. After negative sentiments started to flow in to the market from Europe, Nifty weakened and went on a free fall. But where did it fall till? Remember how multiple times we have discussed about a strong support at 11,680? Well that is exactly where Nifty took support today. Later, Nifty consolidated to close at 11,729.60, down 159.80 points, or 1.34%. Nifty traded in a range of close to 250 points today.

Bank Nifty opened the day at 24,655 and went up till, again, nearly yesterday’s high. The resistance at 24,700 worked beautifully and Bank Nifty fell and fell throughout the day. But the index took support at the crucial level of 24,000 and bounced back to close at 24,232.50, down 537 points, or 2.17%.

All major sectoral indices closed in red today. Nifty Bank was one of the worst performers of the day, along with Nifty Financial Services. Nifty Auto, although in red, closed only marginally in red.

Major Asian markets closed in red. European markets are also trading in red, at the time of writing. 

News Picks

Shares of Bharti Airtel hit Upper Circuits and went up after it registered highest ever quarterly revenue yesterday. But the share prices came down to close at Rs 447.75, 3.32% and still ended as Nifty’s Top Gainer for the day. The company said today that they cannot continue for long with this current tariff plans.

Shares of Aditya Birla Fashion and Retail’s stock fell 4.60% to Rs 157.90 after CAIT (Confederation of All India Traders) raised objections over the company’s plans to raise Rs 1,500 crore from Flipkart, alleging that the proposed deal violates the government’s FDI policy.

The allotment status of Equitas Small Finance Bank IPO is out here.

Titan reported a net profit of Rs 198 crores, down 38% YoY. This result was in line with estimates. Stock prices recovered from deep lows to close at Rs 1,218, down 1.12%.

Piramal Enterprises reported a net profit of Rs 628 crores, up 14% YoY while revenue is up 1%. Share prices closed at Rs 1,278.25, down 1.58% after the announcement came during market hours.

Shares of Marico closed at Rs 363, up 1.82% after the company announced its Q2 results. Net profits is up 7.9% YoY, while volumes were up greatly.

Shares of Delta Corp jumped up in trade today at Rs 115.50, up 6.65%. This jump came after the Goa goverment approved opening of casinos from November 1st.

Markets Ahead

Nifty went up strongly yesterday, despite poor global cues. That was because the local cues were strong, with the additional inflow of Morgan Stanley’s capital and Kotak Bank’s great results. Today, the bearishness in global markets continued and without any strong local cues, Nifty followed suit. So yes, as we talked in the morning article here on marketfeed, Nifty did in fact fall today.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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Nifty Surprises, Kotak Bank up 12% – Share Market Highlights Today

Today’s Market Summarised

After seeing how the US markets performed yesterday, if I told you Nifty would close in green, that too up by more than 1%, would you have believed it? But that it exactly what happened today. After opening with a gap-up at 11,815, Nifty fell sharply till 11,720 more than 90 points. But from that low, Nifty only went up and up. By making consisten higher highs and higher lows, and taking resistance at 11,900, Nifty closed at 11,889, up 121.65 points or 1.03%.

Banks turned out to be the best performing sector of the day. Bank Nifty opened at 24,313 and went down, but after Kotak Mahindra Bank’s results pushed positivity into the index, the index went up to take resistance near 24,800 and closed at 24,769, up 694 points or 2.88%.

Nifty Bank, Nifty Pharma and Nifty Auto were the best performing sectors of the day. Nifty IT performed the worst.

Asian markets closed in mild red or flat for the day. European markets are trading in flat to red, at the time of writing. 

News Picks

Shares of Tata Motors closed at Rs 136.65, up 2.21% in anticipation of good results for last quarter. Consolidated net loss stands at 307 crores vs 187 crores last year. The results are still better than estimates.

Bharti Airtel has announced its Q2 results with a net loss at Rs 763 crores against 15,930 crores last quarter. Revenue is up 8% QoQ to Rs 25,790 crore.

Kotak Mahindra Bank was the obvious top gainer of the day. It showed bulllishness from the start and kept going up after the amazing Q2 results declared yesterday. The bank single-handedly kept Bank Nifty in green throughout the first half of the day, and the bullishness even inspired other banks to come to green. Shares of Kotak closed at Rs 1,587.65, up 12.05% for the day.

Shares of Amaraja Battery closed at Rs 786.75, up 3.48% for the day. During market hours, the company had announced its Q2 results with net profit down 10% Year-on-Year to Rs 200 crore.

Two wheeler stocks recovered after yesterday’s sharp fall. With the current market conditions, do you feel it will fall even more considering the lower sales numbers? On the other side, industry sources have said that Tata Motors recorded 100% growth in car bookings & 90% growth in Passnger Vehicles retails during Navaratri year-on-year.

Hero Motocorp and Harley Davidson have announced a partnership for Indian market. We had discussed about the rumoured deal more than a month ago, here on marketfeed.

Shares of recently listed Angel Broking hit its 20% upper circuit and closed there itself at Rs 298.50. Q2 results of the company put revenue up 80.4% at Rs 309.9 crore year-on-year. Net profit was up 3.9 times at Rs 74.5 crore YoY.

Markets Ahead

Very surprisingly, Nifty made a turn-around from its slight bearish trend during the day. Thoughh, after the index closed the day open levels successfully, it was a confirmed trend in our heads. Not considering the initial bit, it was a clear trending day in the market today. Global factors don’t seem to be affecting Nifty as much as normal due to the many results coming out in between. ICICI Bank and Axis Bank are also set to announce their results soon. Will Bank Nifty cross 25,000 soon? Let us wait and watch tomorrow.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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Editorial

The Government Interest Waiver – All You Need to Know

In normal circumstances, when an individual or a business takes a loan from a bank, they would have to repay the loan amount with interest. More importantly, there would be a specific time period by which they have to make the required payments. What happens to these entities when they fail to repay the banks or other financial institutions? Their credit scores go down, thus, making it difficult for such entities to get essential loans in the future. Or, the property which was used as collateral for the loan would be taken over by the bank and sold off. These are important facts that we already know.

So let us look at the problems faced by different entities in these challenging times of Covid-19. Then we will jump into what this interest waiver means, and how it will affect different parties including consumers like us by understanding what every guideline means.

Problems faced by Businesses:

We need to establish the fact that there is nothing ‘normal’ about this year. The Covid-19 pandemic has definitely caused a huge impact on individuals and businesses all around the world. Small or large businesses would have taken loans to improve production. In order to scale up, the loan amount could have also been used to increase investments in infrastructure. With the lockdown being imposed in late March in India, most businesses had very few customers. Supply chain (network between a firm and its suppliers) disruptions due to the closing of borders had made it very difficult for many businesses to keep their shops open. 

Problems faced by Banks:

An important factor that we must consider is the view of the commercial banks in our country. One of the main sources of income for banks is the interest they receive on loans. In such cases when customers are not in a position to repay the loan interest amount, financial institutions would have a very tough time conducting its normal activities. It could affect the financial result or position of the banks. (There could be exceptions to this. For eg, HDFC Bank reported a high-profit growth of 18% YoY for Q2). Banks and financial institutions are the backbones of any modern economy. To make sure that they do not fail, there should also be a system in place so that all stressed loans do not get classified as bad loans when borrowers fail to repay.

With almost all economic activities being hit, the Government of India had to step in and provide maximum support to its citizens, while maintaining the welfare of banks. The Reserve Bank of India (RBI) had announced a moratorium on repayment of loans (debt) for three months, beginning from March 1, 2020. What this meant was that businesses and individuals would not have to make payments on their loans during this period. The moratorium period was further extended from May 31st for another 3 months. This was mainly because the number of coronavirus cases in India kept on increasing rapidly, and lockdown rules became more strict. 

The Compound Interest Waiver

Even though the RBI had offered a moratorium, the banks continued to build up the compound interest on these loans over the six month period. Interest-on-interest(or compound interest) is the interest on a loan, calculated based on both the initial amount and the piled-up interest from previous periods. On October 3rd, the Government announced that interest-on-interest for loans up to Rs 2 crores during the six-month moratorium period, would be waived off. This would provide relief to many micro, small, and medium enterprises, and individuals. However, do bear in mind that the banks which had provided loans to these enterprises would be largely affected. It had been estimated that the cost of the compound interest waiver could be around Rs 5,000 – 6,000 crores. This loss would be compensated by the Government. 

On 15th October, the Supreme Court asked the Government to speed up the process for implementing the waiver of interest-on-interest. The Court instructed the Centre to implement the waiver by 2nd November. This is to make sure that individuals or businesses would not suffer more financial losses. 

Guidelines for Implementing The Waiver

On 23rd October, the Indian Government issued the important operational guidelines to banks. The guidelines specified how the implementation of the compound interest waiver would go about. Let us look at some of the important aspects of the guidelines:

  1. The interest waiver scheme would be applicable to loans below Rs 2 crores. 
  1. The amount of relief should be calculated as the difference between simple interest and compound interest. What this means is that compound interest on loans would be covered or paid by the government. The simple interest amount has to be paid by the borrowers themselves. The relief amount will be credited to the customer’s account.
  1. The relief payment would be calculated on loan repayments in the period between March 1, 2020, to August 31, 2020.
  1. The rate of interest while calculating the relief amount would be the same as the rate in the loan agreement. This is to ensure that there is no confusion, in case the interest rate has been increased or decreased by banks during the moratorium period.
  1. The government has identified eight categories of loans under this scheme. The categories include micro, small, and medium enterprises (MSME) loans, educational loans, housing loans, consumer durable loans, credit card dues, auto loans, personal loans to professionals, and consumption loans. People who have taken loans based on any of these 8 categories would be eligible for getting relief. Check with your bank to see if you can avail the scheme.
  1. In the case of credit card dues, the rate of interest will be the weighted average lending rate that is charged by the card company. The scheme will also be applicable only for transactions financed on an EMI basis between March and August. The weighted average is a method of calculating the average, in which some elements carry more importance than others.
  1. In the case of loans that were given as cash, normal interest will be calculated on a daily basis at the rate as of February 29, 2020. The compound interest will be calculated on a monthly basis. The amount that comes as the difference between both these rates will be credited to the customer’s account.
  1. The compound interest waiver applies to all lending institutions such as banks, non-bank finance companies (NBFCs), and housing finance companies.
  1. The scheme can also apply to those who had not utilized the RBI moratorium plan, and had continued with the repayment of loans.

The entire cost of the compound interest waiver would be borne by the government. It has been estimated that the scheme would cost Rs 6,500 crores. The banks (or lenders) have to submit all claims for reimbursement by 15th December 2020. The State Bank of India (SBI) will provide the necessary support to the government for receiving and settling all claims.

Conclusion

During these tough times, it is of very high importance that individuals and businesses get support or relief. The effects of non-repayment of loans can have a huge impact on their future activities. On the other hand, it is also essential that compensation is provided for lenders such as banks and other financial institutions. The new scheme would certainly help to balance the present economic conditions in India.  Let us hope that these guidelines will be implemented accurately, and every entity gets what they deserve. 

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Why Did Nifty Fall Today? – Share Market Highlights Today

Today’s Market Summarised

Nifty had a tough day today after opening flat at 11,942. The day’s high was at the opening level, and this was the first sign that things would not go well. Bearishness in the auto sector was another sign for Nifty’s fall today. Then, the news from Spain caused European markets to panic, and in turn, pulled down Nifty as well. After consolidating between 9.30 am and 11 am, the index fell sharply. The 11,800 support was also broken smoothly. After touching a day low of 11,711, Nifty 50 closed the day at 11,767.75, down 162.60 points, or 1.36%.

Bank Nifty opened the day at 24,577 and kept falling from there. Similar to Nifty, it consolidated till 11 am to fall further and take support at 23,867 at around 2 pm. After this, Bank Nifty regained to close at 24,075, down 402 points, or 1.65%.

Every major sectoral index fell steeply today, Nifty Metal and Nifty Auto were the worst performers while Nifty FMCG closed just a bit in red.

Asian markets are mixed. European markets are trading in red, at the time of writing. 

News Picks

As Amazon won an interim relief in the Reliance-Future acquisition deal, shares of Reliance fell today to Rs 2,034.90, down 3.70%. Reliance has said that the deal is completely enforceable under Indian Law. Let’s see how this story pans out.

Shares of SBI Life closed up 1.32% at Rs 781 after the company announced its Q2 result in market hours. Net profit is up 123% YoY to Rs 290 crores. Premium income rose 27% to Rs 12,858 crores.

Kotak Mahindra Bank announced its results during market hours and caused a jump in its stock price. Share prices of the company went up to Rs 1,410.55, up 1.99%. Yesterday there was an apparent fake news that Kotak Mahindra Bank was set to takeover IndusInd Bank, which was denied by Indusind. Shares of IndusInd jumped to Rs 616.90, up 1.44% for the day. Provisions for bad loans have been drastically reduced, compared to last quarter in a time where bad loans are expected to occur.

Profit booking caught up to the metal sector finally after Nifty Metals’ rally last week. Hindalco JSWSteel, JindalStel, and SAIL featured among the top losers for the day. The fall in profits of JSWSteel for Q2 FY21 might have been a strong reason for this fall.

Two wheeler stocks fell sharply after the festive season failed to boost vehicle demand. Dealers say 2-wheeler Dussehra sales weak and that Navaratri sales down 15% YoY. 4-wheeler sales are said to be doing better. Auto stocks crashed for the day and may fall further in the coming sales. Last day, we had predicted such a situation may happen on marketfeed. You can check out the list of top-losers below.

Markets Ahead

With the market closing below 11,800 with a big red candle, things are not looking good for Nifty. The results season is expected to cause such volatility in the market, and as an example you can take the case of steel sector. As we reported last week, dealerships around the country are reporting a glut of extra inventory with manufacturers pushing out more vehicles but retail demand not keeping up. The curfews imposed in Spain have caused European markets to fall and this was expected to bring down Nifty as well. And obviously, the fall of Reliance led to the fall in Nifty.

The weekend did change a lot of things.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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Autos take Up the Market, Nifty Consolidates – Share Market Highlights Today

Today’s Market Summarised

Nifty opened at 11,960 with a big gap-up from yesterday’s close. It even opened above levels indicated by SGX Nifty. After making a day-high of 11,974 in the first 15 minutes, Nifty slowly fell ever so slightly. It took support at 11,910, Nifty went back up to close at 11,930.35, up 33.90 points or 0.28%. Yes, Nifty traded today in a range of only 64 points! Unbelievably so Nifty made a weekly profit, going up 0.8% for since last Friday’s close. 

Bank Nifty opened the day at 24,676 and went down throughout the day. After making a day-low near 24,360, Bank Nifty closed at 24,478.30, down 0.02%. Considering the gap-up, it was one of the worst performing indexes. 

Auto sector went up the most today with most of the top-gainers from the day coming from this segment. The five-day rally of the Nifty Realty index ended today. The index ended 1.1% lower. All other indices ended flat, with Pharma and banks barely in red.

Major Asian markets are in green today. European markets are also in green. Let’s see how and if the weekend will change things.

News Picks

Shares of Maruti gained the most today with prices closing at Rs 7,102 , up 4.26% for the day. Auto sector had a good day today, with 3 out of the top 5 gainers coming from this segment. Automakers are currently taking a big bet, manufacturing several thousands of cars for the festive season even though retail demand is less. Also, check out this article on Maruti’s past, present and future, by marketfeed.

Shares of Tech Mahindra closed at Rs 847, up 1.14% after the company’s US subsidiary said it will acquire 6.03% stake in US-based VitalTech Holdings for $3 million (roughly Rs 22 crores). Shares calmly went up throughout the day even when Nifty IT formed a red candle. The company posted a Q2 net profit of Rs 1,064 crores, up 9.5% YoY after market hours.

Shares of Asia Granito jumped Rs 279.90, up 5.84% today. Towards the later part of the day, the company informed the exchanges that the board has approved a 5:1 stock split.

Shares of Auto Ancillary stocks stand to benefit after the government said in a notification that it plans to boost Auto component manufacturing through Make in India initiative. Among others, Bharat Forge shares jumped 6.44% to Rs 494.

Aditya Birla Fashion and Retail on Friday approved to raise Rs 1,500 crore by way of preferential issue to Flipkart, for 7.8% total equity in the company. This is big news for the company, and rightly so stocks prices jumped up 7.49% to Rs 165. If you did not know, Aditya Birla Fashion manufactures popular clothing brands like Allen Solly, Peter England, Louis Philippe and VanHeusen. The company also operates fashion retail chain Pantaloons across the country. marketfeed is preparing a full-length article on the company and about this deal, do watch out for it!

Shares in Nifty Metal kept up their rally led by Tata Steel whose share prices went up by 3.27% to Rs 423.05. After market hours, JSW Steel posted a net profit of Rs 1,595 crores for Q2, down 37% YoY even though revenue went up 9%.

Shares of Coal India kept going up from yesterday’s bullishness. Energy sector also went up in general. Yesterday, Coal India had put out a statement saying that their net production for this year as of 20 October is slightly higher than for the same period last year. Shares of Coal India went up 1.64% to Rs 117.70. On a similar note, NTPC share prices also went up 1.77% to Rs 86.15.

Shares of JK Tyres went up 10.43% to Rs 73.05. It has gone up more than 20% in the last two days alone. Last day, the company had announced a 35% YoY drop in net profit to Rs 167.7 crores even while revenue from operations increased to Rs 2,274.84 crores

Markets Ahead

Nifty has once again formed a red candle after nearing 12k. The big gap-up courtesy banks was quickly covered after the fall in Bank Nifty. Pharma also fell throughout the day, just like yesterday. With the heavy consolidation from today, we can expect Monday to probably be a very trending market in either direction. Factors that are causing volatility in the Indian markets are the Q2 results season, upcoming US elections and probable US Stimulus Also, the high production of auto sector without considering the low demand in the retail market might become a huge problem for Q3.

Let’s see how and if the weekend will change things.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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No Stimulus? Then Keep Waiting For Nifty at 12k – Share Market Highlights Today

Today’s Market Summarised

Nifty made a big green candle in the first five minutes after opening 11,895 but the bearishness took over just after. After touching the day high of 11,939, Nifty fell and took support at 11,850. After oscillating the whole day, Nifty closed in red at 11,896.45, down 41.20 points or 0.35%. It was an easy day for traders today.

Bank Nifty opened the day at 24,470 and tried testing 24,700 and fell soon. Bank Nifty kept jumping between clear levels and gave clear scalping opportunities. After touching the day low near 24,250, Bank Nifty closed at 24,484, down 151 points or 0.61%.

Nifty Media and Nifty Metal performed the best today, while Nifty Pharma and Nifty IT. 

General Asian markets and European markets are in red today. This bearishness was reflected in Nifty as well.

News Picks

Bharti Infratel posted a result after market hours with a profit of Rs 733 crore, down 24% YoY. Shares of the company closed at Rs 196.20, up 1.79%. Watch out for a volatile opening tomorrow. Revenue up 2% YoY To Rs 3,695 crore. 

Alembic Pharma posted a net profit of Rs 330 crore, up 32% YoY.

Share prices of SBI Cards closed at Rs 829, down 7.41%. This came after the company reported net profit of Rs 206 crores, down 46% YoY. Net Interest Income (NII) is up 5.1%.

Asian Paints reported a net profit of Rs 851.9 crores, up 1.2% for the Q2 FY21. This beat all street estimates. Share prices closed at Rs 2,095.75, down 0.88%. Paint stocks have been rallying for the past few months, will this be a reversal point after profit-booking?

BAJAJ Auto reported a Q2 net profit at Rs 1,138.2 crore, down 19% YoY below all street estimates. 

Shares of IOC went up Rs 78.05, up 2.70% after the board said they are considering raising up to Rs 20,000 crore in FY21 via bonds/debentures on Oct 30.

Shares of Aurobindo Pharma closed at Rs 779, down 3.37% after the company’s US subsidiary got a warning from the US FDA.

Net profits of Ambuja Cement jumped 92% YoY to Rs 440 crore, beating street estimates. Cement stocks have been doing good lately. The company announced Rs 17/share interim dividend.

HDFC AMC reported a net profit of Rs 340 crore, down 8% YoY. Revenue was up 9%. Results were announced after market hours.

Markets Ahead

The US Stimulus looks like it won’t be coming. With the presidential debate coming tonight, do keep watch for any swift movements in US markets. This may affect our markets when they open tomorrow as well. The results season are also expected to keep our markets volatile. If you look at the chart of SBI Cards today, you will understand what I am referring to. Stay invested in safe stocks that you can hold with a peace of mind.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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Daily Market Feed

All is Good in the Market – Share Market Today

Today’s Market Summarised

Nifty opened at 11,514 to hit a high of 11,524 very fast. It faced rejection at those levels and fell strongly to 11,430 in just over an hour. After regaining and stabilising in green, the index fell again and took support at 11,420. Nifty closed the day at 11,472.25, up 5.80 points or 0.051%.



Bank Nifty performed strongly today unlike Nifty 50. It opened at 22,948 with a gap-up and made a day high of 23,063. The index did not go below yesterday’s close and closed strongly at 23,092.15, up 259 points or 1.13%. It was among the top gaining sectoral index today, with sister index Nifty PSU Bank being up 1.34%.

Auto and banking stocks (along with NBFCs) were the stars of the day, with all top gaining members of Nifty coming from these categories. We had talked about the bullishness of these sectors in the morning market feed here. 

Asian markets were mixed. European markets are trading in green at the time of Indian market close.

News Picks

AllCargo Logistics opened at ₹130.60, on the 20% upper circuit. It sustained to close at the upper circuit level. The company had earlier informed the stock exchange its promoters plan to delist the equity shares of the company

Bharti Airtel opened at ₹534/share after Chairman Sunil Bharti Mittal hinted at an increase in mobile services prices in the next six months. The levels could not be maintained and the stock closed at ₹528.65 up 0.33%.

Shares of LIC Housing Finance closed at ₹298.95, up 8.08%. The company had reported a 34 per cent jump in its net profit to Rs 817.48 crore for the quarter ending June helped by lower provisioning. A day high of ₹309 was made by the stock.

Shares of Can Fin Homes Ltd closed at ₹388.90, up 2.64%. Q1 results of the company are expected to be out today. The market is expecting good results like in the case of LIC Housing Finance.


Shares of Atul Auto closed at ₹189.70, up 6.36% for the day. The prices jumped in expectation of an announcement of good Q1 results. 

Adani Enterprises closed at ₹299.80/share, up 20.55%. During the day, reports had come out that the company was eyeing a 74% stake in Mumbai International Airport. Shares are trading at an all-time high with higher volumes than the past 20 days.

Shares of Max Financial Services closed at ₹619.50, up 12.75% today. The NBFC had said Axis Bank now wishes to acquire 17% stake of its subsidiary Max Life Insurance Company. Earlier, the deal was to acquire 29% stake in the company. Ratings agency CLSA had increased its target for the company earlier.

Shares of Rallis India are trading at an all-time high as well, with the stock closing at Rallis India at ₹328, up 8.68%.

Markets Ahead

It has been made clear that Nifty is taking it slow this month. While the general markets slow down, individual stocks in and around the index have been giving amazing returns. Indices like Nifty Auto and Bank Nifty have been giving great returns, with Bank Nifty being up 1% for the third straight day. The index has now gained over 1,000 points in just the last three trading sessions. Heavyweights Reliance and HDFC Bank are barely moving. So it is a great time to look for opportunities outside the index.


Midcaps are rallying, and can be looked at for quick opportunities. So, all is good in the market with profits still to be made for everyone. But don’t forget to invest in only fundamentally strong companies for the long-term! 

Categories
Daily Market Feed

Green start for the week – Share Market Today

Today’s Market Summarised

  • Nifty had a gap-up opening today at 11,248 points. The index fell sharply after open, and consolidated between 11,190 and 11,240 till 3pm. Just after 3pm, Nifty broke the upper bound with the help of banks and went on to close at 11,247.10, up by 68.70 points or 0.61%.


  • Nifty Bank also had a gap-up opening along with Nifty 50. The index opened at 21,894 and crashed to 21,400 levels during trade. However, the index made a strong comeback to close in green by the end of day. Nifty Bank closed at 21,754 up 0.34%. Nifty PSU Bank closed in red for the day, with State Bank of India being the top loser in Nifty 50.

  • Sectoral indices Nifty Metal (+2.51%), Nifty Auto (+2.43%) and Nifty Media (+2.61%) were the top performing indices of the day. Nifty Pharma (-0.33%) closed in red for today.

  • Asian markets are mixed today. European markets are trading flat, just like Nifty.

News Picks

  • Shares of NTPC closed at ₹95, up 7.47% after the company announced better than expected results for Q1 FY21. The government-run power giant also announced it has begun bulk supply of fly ash to distant cement plants. The stock also advanced as the company reported better-than-expected results for the June quarter.

  • M&M share prices closed at ₹623.50, up 1.47% for the day. Introduction of the new Mahindra Thar had received a lot of interest, and is expected to be a smash hit. Nifty Auto was among the top performers of the day. Can interesting cars like this revive India’s struggling passenger vehicle sales?

  • Glenmark Pharmaceuticals opened at ₹495 and shot upto ₹509 before profits were booked. The pharma company had posted an over two-fold increase in consolidated net profit on Friday. Share prices closed at ₹482.75 for the day, up 1.48%. The share would’ve given easy profits to both sides today. Hope you capitalised on the volatility!

  • BPCL share prices closed at ₹407.95, down 1.28% after the company announced it has scaled down capex plans for FY21 to ₹8,000 crore from ₹12,500 crore originally planned as projects are stuck due to unavailability of skilled manpower.

  • Shares of Wipro Ltd. closed at ₹283.50, up 2.53% after the announcement that acquisition of Brazilian IT firm IVA Servicios de informatica Ltda was completed.

Markets Ahead

Today, Nifty showed signs of recovery by the end of the day. The bullishness of Auto and Metal sector stocks are a really good sign for Nifty. The index moved up today while heavyweights Reliance and HDFC Bank closed in red.

Nifty Bank taking a strong and going up is also a good sign for the market. In the end, financial institutions are the backbone of any modern society. So, we can’t help but be bullish on the banking and finance sector, as we all remain bullish on India as a nation. There is no choice for Bank Nifty to go but up in the long run, so investors need not worry. Traders can enjoy the volatility, and book easy profits in these stocks by analysing trends. Wishing you all a wonderful week ahead!

Categories
Editorial

RBI’s Financial Stability Report. Cause of Worry?

  • Banks are currently under high pressure from the impending threat of high NPAs (Non-performing assets) for the industry.
  • Reserve Bank of India (RBI) publishes its Financial Stability Report (FSR)

Financial Stability Report (FSR)

The Reserve Bank of India’s FSR for the month of July was published on last Friday. It outlined the bleak future for the Indian financial sector in upcoming quarters. The report describes various models and stress-tests which indicate that gross non-performing assets (GNPA) ratio of commercial banks could rise up to a worst-case scenario of 14.7% by March 2021 from 8.5% in March 2020. GNPA is the total bad loans a bank adds. The report also says that moratoriums on loans will have negative implications on the industry.

Current Situation

Banks have currently announced raising Rs 1 lakh crore in equity fundraising to offset any liquidity crunch. June ended quarter(Q1 FY21) results for the top 4 banks in India have not been entirely positive. Provisions saw a big rise in the quarter, dragging down net profits.

As we know, the stability in the financial system is very important for the growth of any economy. In her budget presentation in February, Finance Minister Nirmala Sitharaman had mentioned that the government expects to earn Rs 89,649 crore as dividends from the RBI and state-run banks and financial institutions. As the situation has quickly changed, dividend revenue will surely see a decline this financial year.

The economy currently needs a quick flush of spending by the government to restart it. But if the government is suddenly short of Rs 90,000 crore for the year (excluding drop in revenue from other sources), there is suddenly a big problem.

Reacting to the situation, banks are set to be included in the privatisation and disinvestment drive planned by the central government to raise money this fiscal. Number of Public Sector Banks (PSBs) are supposedly going to reduce to just 4 from the current number of 12. Public Sector Banks are those banks in which the government holds more than 50% stake.

NPAs and Risk Aversion

As the possibility of higher NPAs exist, risk aversion (act of avoiding risk) would increase, and banks would start giving lesser loans. As loans are the assets of banks, this risk aversion will cause revenues to decrease. This in turn will start a vicious cycle, inside which the commercial banks will be stuck in. “While risk management has to be prudent, extreme risk aversion would have adverse outcomes for all”, RBI governor Shaktikanta Das wrote in the report.

On a discussion with members of Confederation of Indian Industry (CII), the RBI Governor remarked that investments in the Infrastructure and Power industries will be key to economic revival. He declined to comment on a suggestion by HDFC chairman Deepak Parekh against extending the loan moratorium.

Bank Nifty

The report from RBI has sent shivers down Dalal Street, with all major banking sector stocks closing in red on Monday. Nifty Bank represents the 12 largest stocks from the banking sector which trade on the National Stock Exchange (NSE). As banks are the backbone of any modern economy, the index of banks in a country is a very important indicator of the economy itself.

Weightage of different banks in Nifty Bank

Earlier, results of HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank were analysed by Marketfeed.

Conclusion

Nifty Bank on Monday fell 3.4% as a reaction to the RBI report. NSE index Nifty fell 0.56%, even as global cues were positive. Nifty Bank is likely to remain volatile as the days go by.

Financial sector strengthening measures by the government will be needed to capitalise on current global sentiments favouring India. Going ahead, India’s goals of becoming the next manufacturing hub of the world will need support from the banking sector. Effective policies and interventions by RBI are the need of the hour, and hopefully they wont be too little too late.