Sensex Snaps 7-Day Winning Streak, Nifty Falls Below 18,450; ITC Dips 6%
Closing

Sensex Snaps 7-Day Winning Streak, Nifty Falls Below 18,450; ITC Dips 6%

Indian share markets witnessed volatile trading activity throughout the day today and ended on a flat note.

Dalal street's greatest winning streak in over ten months came to an end today when benchmark indices fell for the first time in eight sessions.

Profit booking as a consequence of in-line September quarter results pulled markets down from intra-day highs.

At the closing bell, the BSE Sensex stood lower by 50 points (down 0.1%).

Meanwhile, the NSE Nifty closed lower by 58 points (down 0.3%).

Tech Mahindra and Larsen & Toubro were among the top gainers today.

ITC and Tata Motors, on the other hand, were among the top losers today.

The SGX Nifty was trading at 18,444, down by 52 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended down by 2% and 1.8%, respectively.

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Sectoral indices ended on a negative note with stocks in the realty sector, consumer durables sector and FMCG sector witnessing most of the selling pressure.

IT stocks, on the other hand, witnessed buying interest.

Shares of Cera Sanitary and Oracle Financial hit their respective 52-week highs today.

Asian stock markets ended on a positive note today.

The Hang Seng and the Shanghai Composite ended up by 1.5% and 0.7%, respectively. The Nikkei ended up by 0.7% in today's session.

US stock futures are trading on a positive note today with the Dow Futures trading up by 88 points.

The rupee is trading at 75.34 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.3% at Rs 47,430 per 10 grams.

Speaking of the stock markets, Brijesh Bhatia, Research Analyst at Fast Profits Report shares his view on housing finance stocks, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the FMCG sector, Hindustan Unilever was among the top buzzing stocks today.

Hindustan Unilever (HUL) reported a standalone net profit of Rs 21.9 bn for the September quarter, an increase of 9% from Rs 20.1 bn reported in the same quarter last year.

On a sequential basis, the profit after tax (PAT) grew 6% from Rs 20.6 bn in the June quarter.

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The FMCG major's revenue from operations rose 11% to Rs 127.2 bn as against Rs 114.4 bn in the year-ago period.

HUL's domestic consumer business recorded a growth of 11% over last year during the September quarter.

Segment wise, home care business grew 15% in the reporting period, driven by high double-digit growth in Fabric Wash. Household care continued to perform well and grew on a strong base. Liquids and fabric sensations continued to outperform.

Beauty and Personal Care grew 10% led by skin care, colour cosmetics and hair care, while foods and refreshment business has seen a growth of 7% against a strong prior year comparator.

The company has also declared an interim dividend of Rs 15 per equity share for the financial year ending 31 March 2022.

Hindustan Unilever share price ended the day down by 3.7% on the BSE.

Speaking of the FMCG sector, have a look at the chart below which shows the performance of BSE Sensex and BSE FMCG index since 2009.

While the Sensex has offered more than 393% returns since 2009, the BSE FMCG index has gone up a staggering 532% returns over the same period.

Richa Agarwal, Senior Research Analyst at Equitymaster, and Editor of the smallcap service, Hidden Treasure, believes this outperformance could continue for many years.

With a rising population and standards of living, Indian's consumption demand for FMCG products will skyrocket over the coming years.

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Moving on to news from the pharma sector...

Dr. Reddy's Gets Approval for Lenalidomide Capsules from USFDA

Dr. Reddy's today announced that it has received approval for Lenalidomide capsules from the US Food and Drug Administration (USFDA).

The company announced the final approval of its abbreviated new drug application (ANDA) for Lenalidomide Capsules, in 2.5 mg and 20 mg strengths, and tentative approval for 5 mg, 10 mg, 15 mg, and 25 mg strengths, a therapeutic equivalent generic version of REVLIMID (lenalidomide) capsules, from the USFDA.

With this approval, the company is eligible for 180 days of generic drug exclusivity for Lenalidomide Capsules.

Marc Kikuchi, CEO, North America Generics, Dr Reddy's Laboratories said,

  • We are pleased with the agency's approval of Lenalidomide Capsules, 2.5 mg and 20 mg and being eligible for 180-day market exclusivity.

    We look forward to bringing a more affordable generic version of this drug to market for the benefit of patients.

In September 2020, Dr Reddy's announced a settlement agreement of their litigation with Celgene, the maker of REVLIMID (lenalidomide) capsules and a wholly-owned subsidiary of Bristol Myers Squibb, relating to patents for the branded drug.

Dr. Reddy's share price ended the day down by 1% on the BSE.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Trades Over 300 Points Higher, Dow Futures Up by 71 Points
12:30 pm

Sensex Trades Over 300 Points Higher, Dow Futures Up by 71 Points

Share markets in India are presently trading on a strong note.

The BSE Sensex is trading up by 377 points, up 0.6%, at 62,142 levels.

Meanwhile, the NSE Nifty is trading up by 85 points.

Tech Mahindra and L&T are among the top gainers today. ITC and Eicher Motors are among the top losers today.

The BSE Mid Cap index is trading flat.

The BSE Small Cap index is trading up by 0.2%

On the sectoral front, stocks from the software sector are witnessing most of the buying interest.

On the other hand, stocks from the real estate sector are witnessing most of the selling pressure.

US stock futures are trading higher today, indicating a positive opening for Wall Street.

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Nasdaq Futures are trading up by 35 points (up 0.2%) while Dow Futures are trading up by 71 points (up 0.2%).

The rupee is trading at 75.34 against the US$.

Gold prices are trading up by 0.3% at Rs 47,437 per 10 grams.

Gold prices inched higher in Indian markets today as a decline in the US dollar and US bond yields provided some support to the precious metal.

On MCX, gold futures were up 0.1% to Rs 47,319 per 10 grams. In the previous session, gold prices fell down by Rs 741 to Rs 47,384 per 10 grams tracking a sharp fall on Friday in global markets.

The precious metal was also pressured by surging 10-year Treasury yield and strength in the dollar.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Moving on to stock-specific news...

Among the buzzing stocks today is IEX.

Shares of Indian Energy Exchange (IEX) hit their upper circuit limit of 20% on the exchanges today after the company said it would consider the issue of bonus shares.

In a regulatory filing, the company said,

  • The company's board of directors are scheduled to meet on Thursday, 21 October 2021, to consider the proposal of bonus issue of equity shares subject to the approval of the shareholders of the company.

The board will also consider and approve the financial results for the quarter and half year ended September 2021.

Shares of IEX have soared as much as 360% in the last year and 55% in the last one month.

IEX is the premier electricity exchange in India, which enjoys a near monopoly status in energy exchange business. It commands a market share of around 95% in the power exchangemarket.

We will keep you posted on more updates from this space. Stay tuned.

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At the time of writing, IEX shares were trading up by 15.5% on the BSE.

Speaking of the stock markets, Brijesh Bhatia, Research Analyst at Fast Profits Report shares his view on housing finance stocks, in his latest video for Fast Profits Daily.

Moving on to news from the smallcap space...

TTK Prestige Hits Record-High as Board Considers Stock Split

Shares of TTK Prestige zoomed 20% on the exchanges in intraday trade today to hit a record high after the company said it plans to consider the proposal of a stock split on 27 October 2021.

The stock surpassed its previous high of Rs 9,580 touched on 5 July 2021.

A stock split is generally done to make the scrip more affordable for small retail investors and increase liquidity.

Existing shares are split, but the underlying value remains the same. As the number of shares increases, the price per share goes down.

As of 30 September 2021, TTK Prestige had 13.7 m outstanding equity shares.

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The promoter and promoter group held a 70.4% stake, while the remaining 29.6% was held by public shareholders including mutual funds (13.1%), foreign portfolio investors (9.9%) and individual shareholders (5.1%).

With increased mobility and optimistic outlook on the consumer confidence index, analysts expect consumer durables companies to continue with their growth momentum. TTK Prestige is likely to grow as well.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

Speaking of stocks, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these for stages.

This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.

If you're interested to know how a stock's life cycle can offer you the opportunity to make money in every phase, you can read about it in one of the recent editions of Profit Hunter: One Cycle That Defines Everything in the Markets

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Opens Above 62,000 Mark, Nifty Nears 18,600; L&T and Bharti Airtel Top Gainers
09:30 am

Sensex Opens Above 62,000 Mark, Nifty Nears 18,600; L&T and Bharti Airtel Top Gainers

Asian share markets opened higher today after Wall Street indices ended mostly up and with investors awaiting corporate earnings.

The Nikkei is trading higher by 0.8% while the Hang Seng is up 1.1%. The Shanghai Composite is trading up by 0.7%.

In US stock markets, Wall Street indices wobbled to a mixed finish as the market's momentum slowed down following its best week since July.

The S&P 500 index and the Nasdaq Composite closed higher with boosts from tech and communications companies.

Meanwhile, the Dow Jones shed 0.1%.

Back home, Indian share markets have opened on a positive note, following the trend on SGX Nifty.

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Market participants will track shares of HUL, Nestle, ACC, ICICI Securities, and Tata Steel BSL as these companies will announce their September quarter results today.

The BSE Sensex is trading up by 319 points. Meanwhile, the NSE Nifty is trading higher by 94 points.

L&T is among the top gainers today. ITC, on the other hand, is among the top losers today.

Both, the BSE Mid Cap index and the BSE Small Cap index have opened up by 0.8%.

Sectoral indices are trading on a mixed note with stocks in the IT sector and capital goods sector witnessing buying interest.

FMCG stocks, on the other hand, are trading in red.

Shares of TTK Prestige and Sheela Foam hit their 52-week highs today.

The rupee is trading at 75.01 against the US$.

Gold prices are trading up by 0.1% at Rs 47,334 per 10 grams.

Meanwhile, silver prices are trading up by 0.5% at Rs 63,595 per kg.

Speaking of stock markets, in his latest video, Rahul Shah talks about why a simple portfolio beat quality bluechips by 2x.

Tune in to the video below to find out more:

In news from the IT sector, Larsen & Toubro Infotech (LTI) is among the top buzzing stocks today.

Mid-tier IT services company LTI's consolidated net profit rose 20.8% year on year (YoY) to Rs 5.5 bn for the second quarter.

Sequentially, net profit improved by 11%.

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Consolidated revenue from operations during the quarter grew 25.6% to Rs 37.7 bn.

The company's CEO and MD Sanjay Jalona said,

  • We are happy to report the strongest sequential revenue growth and best-ever Q2 of 8.9% in constant currency terms. As we cross the $2 billion annual revenue run rate, we continue to remain committed to growth in the future.

LTI's banking and insurance segment contributes nearly half of its business. During the quarter, the banking and financial services vertical grew 9.9%, while insurance increased by 5.6%.

LTI's attrition rate rose sharply to 19.6% during the quarter ended September 2021 compared to 15.2% in June 2021 quarter. Headcount was up by over 4,000 to 42,382 employees.

The company managed to add one client to its US$50 m bucket, three clients to its US$20 m category and five clients in the US$10 m list.

It also declared an interim dividend of Rs 15 per share.

Larsen & Toubro Infotech share price has opened the day up by 9.4%.

Moving on to news from the electric vehicles (EV) space, Tata Motors has claimed that cost of batteries for EVs will drop to levels that will make them affordable in 2-3 years even if the government were to withdraw subsidies offered on EVs.

India's EV industry is thriving on an array of incentives provided by central and state government to promote the faster adoption of the eco-friendly vehicles.

If incentives from both channels are put together, the total benefit for an electric car buyer could amount to as much as Rs 3 lakh.

The central government offers subsidies under the Faster Adoption and Manufacturing of Electric Vehicles, or FAME II, scheme.

In a concall with analysts, Shailesh Chandra, president of the passenger vehicle business unit at Tata Motors said,

  • Subsidies are going to be important for the next few years, but this will be required as long as battery prices are at a certain level.

He added that battery prices will come down rapidly in the next 2-3 years.

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According to the US's Department of Energy, the cost of EV lithium-ion battery packs has declined 87% between 2008 and 2021.

Tata Motors is working on electric versions of the Punch and the Harrier in the coming years as well as born-electric models, all of which will make up seven new product offerings by fiscal 2026, taking the total EV portfolio of 10 products.

The expected slide in battery costs will benefit two and three-wheeler EV manufacturers as well.

We will keep you updates on the latest developments from this space. Stay tuned.

Speaking of EVs, have a look at the chart below which shows the massive opportunity in the two-wheeler EVs.

Here's what lead Smallcap Analyst at Equitymaster, Richa Agarwal wrote about this in a recent edition of Profit Hunter:

  • In the last five years, two-wheeler sales in India were around 2 crore units per year. Now the sector is cyclical and has been in the downturn for some time. So let's consider a moderate 5% growth for the next 10 years.

    By 2030, we are looking at 2-wheeler sales of 3 crore units. Even if one third of this is EV sales, that's 1 crore electric 2-wheelers per year.

    In the last 2 years, average electric 2-wheeler sales were 1.5 lakh units. From 1.5 lakh to 1 crore, that's a 66x opportunity in 2-wheeler EVs.

    This is an annual growth rate of 52% over next 10 years. It's an almost vertical growth opportunity.

As per Richa, this is like a gold rush. But like in any gold rush, the winners will just be a few.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Up 77 Points, UltraTech Cement's Quarterly Performance, Deadline for AGR Dues Moratorium, and Buzzing Stocks Today
Pre-Open

UltraTech Cement

Indian share markets ended on a strong note yesterday.

Benchmark indices extended their winning streak for the seventh straight day, ending at fresh record closing highs, led by gains in index heavyweights Infosys, ICICI Bank and ITC.

Investors shrugged off weakness in other Asian markets even as China's quarterly GDP growth hit a one-year low.

At the closing bell yesterday, the BSE Sensex stood higher by 460 points (up 0.8%).

Meanwhile, the NSE Nifty closed higher by 139 points (up 0.8%).

Hindalco and Infosys were among the top gainers.

M&M and HCL Technologies, on the other hand, were among the top losers.

The BSE Mid Cap index and the BSE Small Cap index ended up by 1% and 0.7%, respectively.

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Sectoral indices ended on a mixed note with stocks in the metal sector, power sector and IT sector witnessing most of the buying interest.

Healthcare and telecom stocks, on the other hand, witnessed selling pressure.

At 8:00 am today, the SGX Nifty was trading up by 77 points, or 0.4% higher at 18,565 levels. Indian share markets are headed for a positive opening today following the positive trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading on a flat note at Rs 47,212 per 10 grams at the time of closing stock market hours yesterday.

Speaking of stock markets, in his latest video, Rahul Shah talks about why a simple portfolio beat quality bluechips by 2x.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be PNB Housing Finance.

Shares of PNB Housing Finance were locked at the 5% lower circuit at Rs 607.1 per share yesterday after the housing finance company called-off the Rs 40 bn deal with Carlyle-led group of investors.

The board of PNB Housing Finance decided not to proceed with a preferential issue of shares to investors led by Carlyle after the plan was delayed due to pending legal proceedings.

The share subscription agreements executed with the proposed allottees have been terminated. Carlyle's Pluto Investments will be initiating the process to withdraw the open offer for PNB Housing made at Rs 403.2 per share.

On 31 May 2021, the board of PNB Housing Finance had approved to raise Rs 40 bn through a preferential issue of equity shares and share warrants to a group of proposed allottees led by entities affiliated to the Carlyle Group Inc.

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The board discussed that the proposed preferential issue has been held up for more than 4 months (after already having taken over two years), due to the pending legal proceeding before the securities appellate tribunal (SAT).

There continues to be no visibility or certainty as to the timeline for judicial determination of the legal issues, in particular as a third member of the SAT is yet to be appointed. The board further noted that due to the protracted litigation and the continuing interim order of the SAT dated 21 June 2021, there is no clarity on the shareholders' approval for undertaking the preferential issue.

The board's primary objective was to raise capital to support the growth of the company, and the board believes that the current situation is not in the best interests of the company and its stakeholders.

Indiabulls Real Estate share price will also be in focus today.

Shares of Indiabulls Real Estate (IBREL) rose over 7% on the exchanges to hit an all-time high, after the company said its sales bookings jumped over two-fold to Rs 8.7 bn during the first six months of the financial year 2021.

The company's sales stood at Rs 3.7 bn in the same period last year.

IBREL also announced the resignation of Sameer Gehlaut as non-executive director and chairman of the company with effect from 31 December 2021.

The resignation of Gehlaut comes amid the proposed merger of IBREL projects with Bengaluru-based Embassy group.

After the conclusion of the merger, Embassy will become the main promoter of the merged entity.

With respect to the merger, IBREL has already got regulatory approvals from the Competition Commission of India (CCI), the NSE, the BSE and the market regulator.

The company has also filed the requisite joint application with the NCLT for approval of the same.

Embassy Group has around a 14% stake in IBREL which will increase to 45% after the merger of both companies.

Post-merger, the combined entity will have 80.8 m square feet of launched and planned development potential. The merged entity will have about 30 projects.

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Govt Gives Airtel, Vodafone Idea till 29 October on Opting for Payments' Moratorium

The government has given telcos - Bharti Airtel, Reliance Jio and Vodafone Idea till 29 October 2021 to respond on whether they would opt for the four-year payment moratorium.

Further, 90 days have been given to carriers to respond on whether they would want to opt to convert the accrued interest due to the deferred payments into equity.

The Ministry of Finance (MoF) letter, sent to the three telcos on Friday, is one of the most important aspects of the relief package which was announced mid-September and is expected to be a lifeline for cash-strapped Vodafone Idea.

'MoF letters came on Friday. The deadlines for responses start from the date the letter was sent, or Friday' said a senior executive from one of the telcos.

Vodafone Idea and Airtel have already made it clear that they would opt for the payments moratorium as well as the debt conversion option. Jio is widely believed to be opting for the payments moratorium as well.

UltraTech Cement's Quarterly Results

UltraTech Cement reported a 7.6% year on year (YoY) rise in its net profit for the quarter ended September to Rs 13 bn. The figure fell below analysts' expectations.

The company reported a 15.3% YoY growth in revenue from operations for the reported quarter to Rs 115.5 bn.

During the quarter, the company's earnings before interest, tax, depreciation and amortization (EBITDA) rose merely 1.6% YoY as the company was unable to take as many price hikes as seen in the previous quarters.

The reported quarter is considered to be seasonally weak for cement companies as most construction work around the country slows down due to monsoons.

The biggest hit was taken by UltraTech's margin which slid 340 basis points YoY to 22.6% as the company was battered by increase in costs and an inability to pass it on to consumers.

The company said that prices of petcoke and coal nearly doubled in the reported quarter, causing energy costs to rise 17% YoY.

UltraTech said that it expects to resume coal mining operations at Bicharpur in December quarter to reduce dependence on external sources for coal, which is currently in short supply across the country.

We will keep you posted on more updates from this space. Stay tuned.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.