Indices turn negative; Nifty slips below 11,900

·4-min read

Benchmarks reversed gains in morning session dragged by banks and financial stocks. At 10:27 IST, the barometer index, the S&P BSE Sensex, fell 89.23 points or 0.22% at 40,432.59. The Nifty 50 index dropped 12.95 points or 0.11% at 11,876.45.

In the broader market, the S&P BSE Mid-Cap index was up 0.24% while the S&P BSE Small-Cap index rose 0.2%.

The market breadth was positive. On the BSE, 1099 shares rose and 926 shares fell. A total of 122 shares were unchanged.

COVID-19 Update:

India reported 6,10,803 active cases of COVID-19 infection and 120,010 deaths while 72,59,509 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. Total COVID-19 confirmed cases worldwide stood at 43,906,632 with 1,166,193 deaths, according to data from Johns Hopkins University.

Buzzing Index:

The Nifty Auto index gained 1.38% to 8,039.95, rising for second consecutive trading session. The index is up 2.63% in two days.

Escorts (up 3%), Mahindra & Mahindra (up 2.19%), Balkrishna Industries (up 1.92%), Maruti Suzuki India (up 1.74%), Exide Industries (up 1.14%), Eicher Motors (up 0.77%) and TVS Motor Company (up 0.51%) were top gainers in automobile segment.

Tata Motors jumped 4.27%. The auto major reported a consolidated net loss of Rs 314.45 crore in Q2 FY21, higher than net loss of Rs 216.56 crore in Q2 FY20. Net sales during the quarter declined 18.4% year-on-year (YoY) to Rs 52,839.02 crore. Finance costs increased by Rs 114 crore to Rs 1,950 crore during Q2 FY21 compared with the prior year due to higher gross borrowings as compared to Q2 FY20. Free cash flow in the quarter, was positive Rs 6,700 crore compared with negative Rs 2,500 crore in Q2 FY20. Jaguar Land Rover (JLR) returned to profit with significant positive cash flow in the quarter as sales and revenue recovered from the impact of Covid-19 in Fiscal Q1 but remain below pre-COVID levels a year ago. Retail sales of 113,569 units were up 53.3% quarter-on-quarter (q-o-q) with almost all retailers now open. However, retail sales in most markets continued to be impacted by Covid-19 and so were down 11.9% in total year-on-year. China sales were particularly encouraging, up 14.6% on the prior quarter and 3.7% year-on-year.

Earnings Impact:

Bharti Airtel jumped 8.73%. The telecom major reported a net loss of Rs 763.20 crore in Q2 September 2020, lower than net loss of Rs 23,045 crore in Q2 September 2019. Consolidated revenues jumped 22% to Rs 25,785 crore in Q2 September 2020 over Q2 September 2019. Pre-tax profit (before exceptional items) stood at Rs 567 crore in Q2 September 2020 as against a pre-tax loss (before exceptional items) of Rs 623 crore in Q2 September 2019.

During the quarter, EBITDA rose 32.6% year-on-year to Rs 11,848 crore. EBITDA margin stood at 46% in Q2 September 2020, higher than 42.3% Q2 September 2019. EBIT increased by 121.4% YoY to Rs 4,412 crore. EBIT margin stood at 17.1%, up from 9.4% last year.

India revenues for Q2 FY21 stood at Rs 18,747 crore increased by 22% YoY. Mobile revenues grew by 26.0%. Mobile ARPU stood at Rs 162 in Q2FY21 compared with Rs 128 in Q2FY20. Consolidated mobile data traffic stood at 7,403 petabytes (PBs) in the quarter with a healthy YoY growth of 58.8%. The company's 4G data customers increased by 48.1% to 152.7 million compared to the previous year while traffic increased to 77.3 PB/day vs 48.9 PB/day in the corresponding quarter last year.

Earnings Today:

Axis Bank (down 0.23%), Dr. Reddy's Laboratories (down 0.23%), Hero MotoCorp (up 3.2%), Larsen & Toubro (up 0.15%) and Titan (down 1.13%) will announce Q2 results today.

APL Apollo Tubes (up 2.2%), AU Small Finance Bank (up 1.27%), Balaji Amines (up 1.38%), Blue Star (up 0.79%), Can Fin Homes (up 1.27%), Carborundum Universal (up 0.33%) , Cummins India (down 1.1%), GSK Pharma (up 0.82%), Firstsource Solutions (up 0.4%), ICICI Securities (up 2.22%), Marico (up 0.84%), MCX India (up 0.24%), MOIL (up 1.06%), Navin Fluorine (up 1.94%), PI Industries (up 1.58%), Piramal Enterprises (down 1.29%), PNB Housing (down 0.72%), Radico Khaitan (down 0.04%), RBL Bank (up 0.74%), Route Mobile (up 4%), Tata Coffee (up 0.64%) and UTI AMC (up 1.05%) will also announce their quarterly results today.