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Market Today with EZWealth – 26 Oct 2021
[/vc_column_text][vc_separator][vc_column_text]Indian benchmark equity indices closed higher for the second straight day on Tuesday, led by gains in auto, realty, and metal stocks.
The Sensex closed 383.21 points, or 0.63%, higher at 61350.26, while Nifty was up 143 points or 0.79% at 18268.40. Reliance Industries, Kotak Mahindra Bank drove gains on the Sensex, while Tata Steel was the top gainer.
All the sectoral indices ended higher, with auto, infra and metal indices up 1-2.5 percent. The broader indexes outperformed their larger peers with both the S&P BSE MidCap index and the S&P BSE SmallCap indexes rising 2%. All the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Realty index rising over 3.4% and SYP BSE Consumer durables & metal indexes added nearly 3%. The market breadth was skewed in favour of bulls. About 2,227 stocks advanced, 1,048 declined and 1 remained unchanged.[/vc_column_text][vc_single_image image=”68083″ img_size=”large” alignment=”center” css=”.vc_custom_1635254174368{margin-top: 10px !important;margin-right: 10px !important;margin-bottom: 10px !important;margin-left: 10px !important;border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;border-left-color: #0a0a0a !important;border-left-style: solid !important;border-right-color: #0a0a0a !important;border-right-style: solid !important;border-top-color: #0a0a0a !important;border-top-style: solid !important;border-bottom-color: #0a0a0a !important;border-bottom-style: solid !important;border-radius: 1px !important;}”][vc_column_text css=”.vc_custom_1635254221348{margin-top: 11px !important;margin-right: 11px !important;margin-bottom: 11px !important;margin-left: 11px !important;border-top-width: 1px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;background-color: #dddddd !important;border-left-color: #4329b5 !important;border-right-color: #4329b5 !important;border-top-color: #4329b5 !important;border-bottom-color: #4329b5 !important;border-radius: 3px !important;}”]
News stories Today
[/vc_column_text][vc_column_text]Surging energy prices bring near-term cheer to Indian oil refiners
Consumers are switching to diesel from gas as prices of the cleaner natural fuel rose amid a surge in energy costs around the world. That’s likely to strengthen the core gross refining margin of Indian oil firms. Diesel’s premium to crude, or the crack spread measured as the difference between the price of processed petroleum products and crude oil, hit a two-year high of $23.97 a barrel on Oct. 14. The Bloomberg Fair Value Low Sulphur Diesel WTI Crack is currently at $22.63 a barrel. The benchmark has surged 83% year to date. Usually, a rise in spread improves the core GRM (net of inventory gains) of refineries and vice versa.
Preliminary data suggests that the demand for diesel in India may have crossed pre-pandemic levels in October, Bloomberg reported citing officials with direct knowledge of the matter. The increased consumption is expected to support the refining margin of oil companies in the near term. The Singapore-Dubai Hydrocracking refining margin, a measure of what refiners make by processing crude, touched a more than two year-high of $6.25 a barrel on Oct. 15, according to Bloomberg data. The benchmark has surged over fivefold so far this year, with the current margins at $5.6 a barrel. The refining margins are expected to remain elevated if gas prices continue to surge.
Engineering goods shipments cross $9bn for the 3rd month in a row in September
Engineering goods shipments crossed $9 billion for the third month in a row in September with 22 out of 25 top export destinations such as China, UK and UAE recording positive growth. Out of 33 engineering product categories, 27 witnessed positive growth in exports during September 2021 when compared with the same month last year. Maximum year-on-year decline was witnessed in zinc; aircraft, spacecraft and parts; ships and floating structure and electrical machinery during this period.
Share of engineering goods in total merchandise export was 26.65% in September 2021. During September, the US remained top destination for engineering goods exports with the total value of the shipment at $1.29 billion, up 12.2 per cent compared to $1.15 billion in the same month last year. China was the second biggest market with total shipments growing 49% year-on-year to $568 million during this period. India’s engineering goods exports to UAE grew by 48 per cent to $399.6 million in September 2021 as against $268.6 million in the same month last year.
India’s rubber output dented by heavy rains in Kerala, to lift imports
India’s natural rubber production is likely to fall sharply in October and November, as heavy rains have been disrupting tapping activity in the country’s top producing southern state of Kerala, industry officials said on Monday. Lower production could force India, the world’s second-biggest consumer of natural rubber, to increase imports in the coming months from Indonesia, Malaysia and Thailand, supporting global prices.
India produced 67,000 tonnes of natural rubber in September, estimates the Association of Natural Rubber Producing Countries (ANRPC). The production is likely to be lower in November as well, as the onset of north-east monsoon will bring heavy rainfall, but the output will recover from December onwards, he said. Kerala received 117% more rainfall than normal so far in October, according to the weather department. The supplies are constrained by labour shortage and as heavy rainfall has made tapping even rain-guarded trees difficult, said a rubber dealer N. Radhakrishnan.
Chinese developer Modern Land defaults; property shares drop
Modern Land has missed a bond payment, the latest Chinese property developer to do so, adding to worries about wider effects of the debt crisis at behemoth China Evergrande Group and dragging on shares in the sector. China’s state planner is set to meet with property firms carrying large dollar-denominated debts later in the day to take stock of their total issuance volume and repayment capability, amid the mounting concerns about liquidity.
Earlier this month, Fantasia Holdings Group defaulted on a maturing dollar bond that heightened concerns in international debt markets, already roiled by worries over whether Evergrande would meet its obligations. Evergrande, which narrowly averted a costly default last week, is reeling under more than $300 million in liabilities and has a major payment deadline on Friday. Chinese Estates Holdings Ltd said it would book a loss of HK$288.37 million ($2.24 billion) in the current fiscal year from its latest sale of bonds issued by Chinese property developer Kaisa Group Holdings Ltd.
Maharashtra govt allows all fully-vaccinated people to board Mumbai local trains
The Maharashtra government on Tuesday issued an order allowing the common people, irrespective of the nature of their jobs, who are vaccinated fully against COVID-19 to board suburban trains in the Mumbai Metropolitan Region (MMR). In this order, the state government has extended the definition of fully vaccinated people to cover even those people who are working in non-essential sectors.
The government also stated that the people working in essential sectors must be fully vaccinated and should have completed the 14 days post-inoculation before they can be allowed to board local trains. Currently, the Central Railway and the Western Railway have been issuing a monthly pass to vaccinated commuters instead of daily tickets to curtail the crowd.
India receives first LNG cargo from Yamal LNG project
India received its first import of liquefied natural gas (LNG) from Russia’s Yamal LNG project over the weekend, Refinitive Eikon LNG flows data showed. The cargo was supplied by Russian gas company Gazprom under its long-term LNG sales deal with GAIL (India) Ltd, an industry source said.
The cargo on board the Marshal Vasilevsky sailed through the Northern Sea Route, Pacific Ocean and Indian Ocean before arriving at GAIL’s Dabhol terminal over the weekend, the ship-tracking data showed. Appeal of gas supplies to India under long-term contracts has increased after a surge in spot LNG prices.
Dearness Allowance hike to 31% effective from July 1: Finance Ministry
Dearness Allowance for central government employees has been hiked to 31 percent of the basic pay from 28 percent with effect from July 1, 2021, the Finance Ministry said. In an office memorandum, the Department of Expenditure, under the Finance Ministry, said the term ’basic pay’ means the pay drawn as per the 7th pay commission matrix and does not include any other type of pay like special pay, etc.
The Union Cabinet had last week approved a 3 percent hike in dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners over the 28 percent existing rate. The decision will benefit about 47.14 lakh central government employees and 68.62 lakh pensioners. In July this year, and DA rate was increased from 17 percent to 28 percent. The combined impact on the exchequer on account of the Dearness Allowance and Dearness Relief would be Rs 9,488.70 crore.
China was never before this cheap in comparison to India, says HSBC
China has never been this cheap versus India, global brokerage HSBC has said, while raising its weighting on the world’s second-biggest market from ‘neutral’ to ‘overweight’. HSBC joins slew of other brokerages such as UBS, Nomura and Jefferies to increase its weight on China citing easing of headwinds and attractive valuations.
“On a price-to-earnings (P/E) basis, China is not expensive. It is trading at a 12-month forward P/E of 12.9 times, down from as high as 17 times at the beginning of the year. China has never been this cheap versus India-–FTSE India is now trading at a premium of 95 per cent to China, a record high,” HSBC strategist led by Herald van der Linde said in a note on Tuesday. China’s benchmark SSE Composite index is up only 3.6 per cent this year. In comparison, the benchmark Nifty 50 index has gained 30 per cent. “Investors are too bearish about China stocks – we think the baby is being thrown out with the bathwater. Yes, China is struggling with growth and a stronger USD is not good news for China’s stock markets. But that’s now well-known and is priced in. Even good, blue chip stocks are now trading at attractive valuations,” said van der Linde.
Mastercard to Allow Banks to Offer Crypto Credit and Debit Cards
Mastercard Inc. is making it easier for banks to offer cryptocurrency rewards on their credit and debit cards as part of the payment network’s recent embrace of digital currencies. To pull it off, Mastercard has inked a deal with Bakkt, the cryptocurrencies firm that spun off from Intercontinental Exchange earlier this year, according to a statement Monday. As part of the changes, Mastercard will also make it easier for consumers to spend the cryptocurrency rewards they earn at the millions of retailers on the firm’s network. “Together with Bakkt and grounded by our principled approach to innovation, we’ll not only empower our partners to offer a dynamic mix of digital assets options, but also deliver differentiated and relevant consumer experiences,” executive vice president of digital partnerships at Mastercard, said in the statement.[/vc_column_text][vc_column_text css=”.vc_custom_1635254268100{margin-top: 11px !important;margin-right: 11px !important;margin-bottom: 11px !important;margin-left: 11px !important;border-top-width: 1px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;background-color: #dddddd !important;border-left-color: #4329b5 !important;border-right-color: #4329b5 !important;border-top-color: #4329b5 !important;border-bottom-color: #4329b5 !important;border-radius: 3px !important;}”]
Stocks making news today
[/vc_column_text][vc_column_text]Private lender Axis Bank reported an all-time high standalone net profit of ₹3,133 crore in the September quarter (Q2FY22), mainly on account of accelerating loan growth in focus segments, limited restructuring and improving asset quality. This is an increase of 86% from ₹1,682 crore a year ago. The lender’s net interest income (NII) grew 8% year-on-year to ₹7,901 cr from ₹7,326 crore in the last year quarter.
Zee Entertainment share price rose 7 percent intraday on October 26 as the Bombay High Court granted injunction against calling extra ordinary general meeting (EGM) today in the Zee Entertainment-Invesco row. Meanwhile, the company has cancelled its board meeting scheduled for October 27, the media company has said in an exchange filing.
Production cutbacks due to semiconductor shortages have continued for Jaguar Land Rover in the third quarter of FY22 with temporary shutdowns of three of its plants in Nitra (Slovakia) and Solihull (the UK) between October 25 and 29, while the plant in Graz (Austria), which is owned by its partner Magna Steyr, will witness no-production days on October 25 and 26, and November 1 and 2. The shutdowns may result in a volume loss of between 5,000 and 7,000 units and an incremental revenue loss of £300-325 million, or about Rs 3,100-3,350 crore, sources added. Including volumes of its China joint venture, CJLR, Jaguar Land Rover clocked wholesale volumes of 97,141 units during the April-June quarter, as per its own data. While the two brands have not shared the numbers for the July-September quarter, wholesale volumes excluding CJLR stood at 64,032 units.
Motherson Group on Tuesday said it has extended its co-operation with Marelli Automotive Lighting (Marelli) for a new tool room in India. This will be the first of its kind tool room in India dedicated to specific lighting applications, the company said in a statement. The tool room will be an extension of the existing joint venture company — Marelli Motherson Automotive Lighting India Pvt Ltd, it added. The 50/50 JV was established in 2008, to address the Indian exterior lighting market and now has four manufacturing plants in India.
Kotak Mahindra Bank on October 26 reported a 7 percent year-on-year decline in standalone profit at Rs 2,032 crore for the September 2021 quarter due to higher provisions. But supported by higher other income, the profit was ahead of analysts’ estimates. However, net income sequentially grew by 24 percent on sharp decline in bad loan provisions. Standalone net interest income in Q2FY22 rose 3.2 percent year-on-year to Rs 4,020.6 crore – meeting street expectations – with healthy 15 percent YoY (8 percent QoQ) loan growth. Net interest margin contracted 5 bps year-on-year and 15 bps sequentially to 4.45 percent in Q2.
Subros: Net Sales at Rs 529.48 crore in September 2021 up 15.58% from Rs. 458.10 crore in September 2020. Quarterly Net Profit at Rs. 4.95 crore in September 2021 down 72.08% from Rs. 17.73 crore in September 2020. EBITDA stands at Rs. 36.69 crore in September 2021 down 35.9% from Rs. 57.24 crore in September 2020.
Macrotech Developers: Net Sales at Rs 2,123.83 crore in September 2021 up 135.78% from Rs. 900.77 crore in September 2020. Quarterly Net Profit at Rs. 220.41 crore in September 2021 up 160.68% from Rs. 363.21 crore in September 2020. EBITDA stands at Rs. 469.64 crore in September 2021 up 102.59% from Rs. 231.82 crore in September 2020.
Tanla Platforms: Net Sales at Rs 841.62 crore in September 2021 up 44.3% from Rs. 583.25 crore in September 2020. Quarterly Net Profit at Rs. 136.17 crore in September 2021 up 67.14% from Rs. 81.47 crore in September 2020. EBITDA stands at Rs. 181.82 crore in September 2021 up 77.78% from Rs. 102.27 crore in September 2020.
CG Power: Net Sales at Rs 1,453.79 crore in September 2021 up 118.98% from Rs. 663.89 crore in September 2020. Quarterly Net Profit at Rs. 188.11 crore in September 2021 up 71.99% from Rs. 109.37 crore in September 2020. EBITDA stands at Rs. 185.92 crore in September 2021 up 164.24% from Rs. 70.36 crore in September 2020.
Jubilant Pharmova: Net Sales at Rs 1,657.45 crore in September 2021 down 30.21% from Rs. 2,374.89 crore in September 2020. Quarterly Net Profit at Rs. 142.84 crore in September 2021 down 36.24% from Rs. 224.03 crore in September 2020. EBITDA stands at Rs. 343.95 crore in September 2021 down 30.3% from Rs. 493.46 crore in September 2020.
Sundram Clayton: Net Sales at Rs 6,800.86 crore in September 2021 up 24.48% from Rs. 5,463.58 crore in September 2020. Quarterly Net Profit at Rs. 148.31 crore in September 2021 up 33.87% from Rs. 110.79 crore in September 2020. EBITDA stands at Rs. 812.67 crore in September 2021 up 16.98% from Rs. 694.71 crore in September 2020.
Agrotech Foods: Net Sales at Rs 251.90 crore in September 2021 up 10.2% from Rs. 228.58 crore in September 2020. Quarterly Net Profit at Rs. 5.24 crore in September 2021 down 41.12% from Rs. 8.90 crore in September 2020. EBITDA stands at Rs. 13.03 crore in September 2021 down 22.02% from Rs. 16.71 crore in September 2020.
Chennai Petrochem: Net Sales at Rs 8,856.06 crore in September 2021 up 82.11% from Rs. 4,863.08 crore in September 2020. Quarterly Net Profit at Rs. 65.45 crore in September 2021 down 77.48% from Rs. 290.58 crore in September 2020. EBITDA stands at Rs. 313.93 crore in September 2021 down 52.24% from Rs. 657.26 crore in September 2020.
Apollo Pipes: Net Sales at Rs 208.17 crore in September 2021 up 68.82% from Rs. 123.30 crore in September 2020. Quarterly Net Profit at Rs. 14.05 crore in September 2021 up 47.87% from Rs. 9.50 crore in September 2020. EBITDA stands at Rs. 26.07 crore in September 2021 up 49.31% from Rs. 17.46 crore in September 2020.
VST Industries: Net Sales at Rs 360.86 crore in September 2021 up 20.15% from Rs. 300.33 crore in September 2020. Quarterly Net Profit at Rs. 79.88 crore in September 2021 down 9.78% from Rs. 88.54 crore in September 2020. EBITDA stands at Rs. 114.56 crore in September 2021 down 10.32% from Rs. 127.74 crore in September 2020.
Jagran Prakashan share price rose 15 percent intraday on October 26, a day after the publisher of the Hindi daily Dainik Jagran posted better numbers for the quarter ended September 2021. The Company on October 25 reported a sixfold jump in its consolidated net profit to Rs 60.89 crore for the quarter ended September 2021. The company had posted a net profit of Rs 10.14 crore during the July-September quarter a year ago.
PVR: Net Sales at Rs 120.32 crore in September 2021 up 197.45% from Rs. 40.45 crore in September 2020. Quarterly Net Loss at Rs. 153.13 crore in September 2021 up 16.75% from Rs. 183.95 crore in September 2020. EBITDA stands at Rs. 86.76 crore in September 2021 up 719.71% from Rs. 14.00 crore in September 2020.
Glenmark Pharmaceuticals on Tuesday said it has become the first company in the world to launch a unique fixed dose combination drug for diabetes in India. The Mumbai based drug firm said it has introduced fixed dose combination (FDC) of its novel, patent protected Sodium Glucose Co-Transporter Inhibitor (SGLT2i) – Remogliflozin Etabonate and another widely used DPP4 inhibitor (Dipeptidyl Peptidase 4 inhibitor) – Vildagliptin, with Metformin.
QuickHeal Technologies: Net Sales at Rs 103.79 crore in September 2021 up 22.95% from Rs. 84.41 crore in September 2020. Quarterly Net Profit at Rs. 34.63 crore in September 2021 up 20.09% from Rs. 28.84 crore in September 2020. EBITDA stands at Rs. 49.96 crore in September 2021 up 11.24% from Rs. 44.91 crore in September 2020.
Inox Leisure: Net Sales at Rs 47.44 crore in September 2021 up 13077.78% from Rs. 0.36 crore in September 2020. Quarterly Net Loss at Rs. 87.66 crore in September 2021 down 29.23% from Rs. 67.83 crore in September 2020. EBITDA stands at Rs. 21.67 crore in September 2021 down 51.69% from Rs. 44.86 crore in September 2020.
Indian Hotels Company (IHCL) today announced the signing of a new SeleQtions hotel in Bhubaneswar, Odisha. Currently operating as “The Crown”, the hotel will be re-branded as an IHCL SeleQtions hotel. This hotel is in partnership with Sukhamaya Pvt. Ltd.
FMCG major Colgate-Palmolive India Ltd on Monday reported 1.83 per cent decline in net profit at Rs 269.17 crore for the second quarter ended September 2021. The company posted a net profit of Rs 274.19 crore in July-September period a year ago, Colgate-Palmolive India Ltd (CPIL) said in a BSE filing. Revenue from operations was up 5.19 per cent to Rs 1,343.96 crore during the quarter under review as against Rs 1,277.66 crore in the year-ago period.
HG Infra Engineering: The scrip jumped over 14 percent after the firm received the letter of award from the National Highways Authority of India for two projects worth Rs 2,297.25 crore.[/vc_column_text][vc_separator][vc_column_text]
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