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Sensex tumbles 456 pts, Nifty ends below 18,300; PSU banks advance

Published on Oct 20, 2021 16:43

The domestic equity benchmarks ended with significant cuts on Wednesday. Metal, FMCG and realty stocks tumbled while PSU banks and media shares bucked the trend. The S&P BSE Sensex, dropped 456.09 points or 0.74% to 61,259.96.

The Nifty 50 index lost 152.15 points or 0.83% to 18,266.60. It reversed trend after hitting the day`s high of 18,458.30 in morning trade.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 5.35% to 18.31.

The broader market declined sharply after a recent rally. The BSE Mid-Cap index slipped 1.91% and the BSE Small-Cap index skid 2.31%.

The market breadth was weak. On the BSE, 978 shares rose and 2322 shares fell. A total of 127 shares were unchanged.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.375% as compared with 6.387% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.88, compared with its close of 75.35 during the previous trading session.

MCX Gold futures for 3 December 2021 settlement rose 0.30% to Rs 47,420.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.11% to 93.83.

In the commodities market, Brent crude for December 2021 settlement fell 87 cents at $84.21 a barrel. The contract rose 75 cents, or 0.89% to settle at $85.08 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia were mixed on Wednesday, as investors digested a slew of corporate earnings. China on Wednesday kept the one-year loan prime rate (LPR) unchanged at 3.85% while the five-year LPR was also held steady at 4.65%.

The International Monetary Fund (IMF) on Tuesday downgraded its 2021 economic growth forecast for Asia after the highly infectious COVID-19 delta variant caused a spike in cases in parts of the region. The IMF said it expects Asia`s economy to grow by 6.5% in 2021, compared with its April forecast for a 7.6% expansion. The region`s growth will be led by China and India, the fund added.

The IMF expects China to grow 8% this year and India by 9.5% in the fiscal year that ends next March.

Buzzing Indian Segment:

The Nifty PSU Bank index rose 1.54% to 2,761.15. The index fell 3.73% in the previous session.

Union Bank of India (up 5.73%), Bank of Baroda (up 4.09%), Indian Bank (up 3.24%), Canara Bank (up 3.04%), State Bank of India (up 2.66%) and Central Bank of India (up 1.11%) advanced.

Stocks in Spotlight:

IRCTC (down 17.34%), Deepak Nitrate (down 12.12%), Cera Sanitaryware (down 9.73%), Dixon Technologies (down 8.77%) and IEX (down 6.34%) slumped.

Mastek fell 13.55%. The company`s net profit rose 1.6% to Rs 81.5 crore on 3.4% increase in revenue from operations to Rs 533.9 crore in Q2 September 2021 over Q1 June 2021. On a year on year (YoY) basis, Mastek`s net profit rose 37.8% and revenue from operations rose 30.3%.

Navin Fluorine International slumped 9.28% after the chemical maker posted a 6.8% decline in consolidated net profit to Rs 63.22 crore in Q2 FY22 from Rs 67.81 crore reported in Q2 FY21. Revenue from operations increased by 6.3% to Rs 338.96 crore in Q2 FY22 over Q2 FY21. Profit before tax declined 7.5% year on year to Rs 82.4 crore in Q2 FY22.

Jubilant Foodworks slumped 8.51%. On a standalone basis, Jubilant Foodworks posted a 58% rise in standalone net profit to Rs 121.5 crore on a 36.6% rise in revenue from operations to Rs 1100.7 crore in Q2 FY22 over Q2 FY21.

Domino`s Like-for-Like (LFL) sales growth stood at 29.4% in Q2 FY22 as compared to a negative 18.8% in Q2 FY21. LFL sales growth refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year.

Same store growth (SSG) came at 26.3% in Q2 FY22 as against a negative 20% in the same period last year. SSG refers to the year-over-year growth in sales for restaurants opened before previous financial year. As on 30 September 2021, there were 1,435 Domino`s Pizza stores, 28 Dunkin Donuts stores and 21 Hong`s Kitchen and Ekdum! stores.

Nestle India shed 0.61%. The company`s net profit rose 5.16% to Rs 617.37 crore on 9.63% increase in net sales to Rs 3,864.97 crore in Q3 September 2021 over Q3 September 2020. In overall terms, the third quarter saw strong high single digit volume & mix growth in domestic sales, the company said.

L&T Technology Services fell 3.23%. The company`s consolidated net income rose 6.4% to Rs 230 crore on 5.9% increase in revenue to Rs 1607.70 crore in Q2 September 2021 over Q1 June 2021. The company raised FY22 USD revenue growth guidance to 19-20%.

ACC added 0.65%. The cement maker`s consolidated profit after tax rose 24% to Rs 450 crore on 5.33% increase in net sales to Rs 3653 crore in Q2 September 2021 over Q2 September 2020.

ICICI Prudential Life Insurance Company dropped 4.35%. The company reported profit after tax of Rs 445 crore in Q2FY22 against Rs 303 crore in Q2FY21. Net premium income increased to Rs 9286 crore in the second quarter of the fiscal from Rs 8572 crore a year ago.

Nelco was locked in a lower circuit of 5% at Rs 911.25. The company`s consolidated net profit soared 53.15% to Rs 3.40 crore on a 13.52% surge in total income to Rs 61.46 crore in Q2 FY22 over Q2 FY21.

ICICI Securities declined 2.96%. The brokerage company posted a 26.3% increase in consolidated net profit to Rs 351.24 crore on a 26% rise in revenue to Rs 857 crore in Q2 FY22 over Q2 FY21.

The stock broking company`s profit before tax stood at Rs 470.92 crore in Q2 FY22, 26.5% higher than Rs 372.30 crore reported in Q2 FY21, on account of growth in revenue and improvement in margins. The company said it added over 5.8 lakh clients and reported its highest ever quarterly addition.

Ipca Laboratories slipped 2.40%. The pharmaceutical company said its board will consider 2-for-1 stock split on 13 November 2021. The board will consider splitting each share of face value Rs 2 each into two shares of face value of Re 1 each. On 13 November 2021, the company`s board will also consider Q2 results and interim dividend.

Snowman Logistics surged 5.13% after the company reported net profit of Rs 0.47 crore in Q2 September 2021 compared with net loss of Rs 1.73 crore in Q2 September 2020. Net sales 21.46% to Rs 70.07 crore in Q2 September 2021 over Q2 September 2020. EBITDA increased by 25% to Rs 19.03 crore from Rs 15.19 crore in the corresponding quarter of the previous year.

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