Nifty below 11,600 mark; breadth turns negative

·6-min read

Key barometers further extended losses and hit fresh intraday low in early afternoon trade. At 12:31 IST, the barometer index, the S&P BSE Sensex, tumbled 396.41 points or 1% at 39,353.08. The Nifty 50 index slipped 115.75 points or 0.99% at 11,555.05.

Asian shares declined for a third straight session on Friday as jitters over next week's US presidential election and a shaky global economic outlook eclipsed markets. The Dow Jones 30 futures slumped 521 points, indicating a weak start in US markets today.

In the broader market, the S&P BSE Mid-Cap index was down 0.09% while the S&P BSE Small-Cap index fell 0.57%.

The market breadth turned negative. On the BSE, 1035 shares rose and 1319 shares fell. A total of 139 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 6.23% to 25.52. The Nifty November 2020 futures were trading at 11,582.95, at a discount of 19.85 points compared with the spot at 11,602.80.

The Nifty option chain for 26 November 2020 expiry showed maximum Call OI of 15.58 lakh contracts at the 12,000 strike price. Maximum Put OI of 22.11 lakh contracts was seen at 11,500 strike price.

Maharashtra extends Covid-19 lockdown:

The Maharashtra government issued orders extending the Covid-19 induced lockdown for another month, till midnight of 30 November 2020. The state government under its 'Mission Begin Again' plan said that the phase-wise opening of activities in Maharashtra will "remain in force till 30 November, 2020 for containment of COVID-19 epidemic in the state and all departments of government of Maharashtra shall strictly implement these guidelines.

COVID-19 Update:

India reported 5,94,386 active cases of COVID-19 infection and 120,527 deaths while 73,73,375 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 44,945,080 with 1,180,317 deaths, according to data from Johns Hopkins University.

Economy:

India's output of eight core infrastructure sectors dropped by 0.8% in September, mainly due to decline in production of crude oil, natural gas, refinery products and cement. The production of eight core sectors had contracted 5.1% in September 2019, data released by the Commerce and Industry Ministry showed on Thursday. The decline in output during the month under review was lowest since March. Barring coal, electricity and steel, all sectors (crude oil, natural gas, refinery products, fertiliser and cement) recorded negative growth in September 2020.

India's fiscal deficit stood at Rs 9.1 lakh crore halfway through this financial year, exceeding the full-year target of Rs 7.96 lakh crore by almost 15%, according to official data released on Thursday. Total expenditure stood at Rs 14.8 lakh crore, or 48.6% of the budget estimate. The Centre spent 53% of the budgeted expenditure in the six months ended September 2019. The government's total revenue was Rs 5.7 lakh crore at the end of September, representing 25% of the budgeted amount and 40% of the figure a year earlier, data from the Controller General of Accounts revealed.

Buzzing Index:

The Nifty Bank index slipped 1.51% or 364 points to 23,728, falling for third consecutive trading session. The index has fallen 4.2% in three days.

Kotak Mahindra Bank (down 2.86%), Bank of Baroda (down 2.68%), ICICI Bank (down 2%), Federal Bank (down 1.96%), Bandhan Bank (down 1.79%), Axis Bank (down 1.78%), IndusInd Bank (down 1.25%) and IDFC First Bank (down 0.82%) were top losers in banking segment.

Canara Bank was down 0.23%. The PSU lender reported 21.8% jump in net profit to Rs 444.41 crore on 44.1% rise in total income to Rs 20,836.71 crore in Q2 September 2020 over Q2 September 2019. Net interest income jumped 29.31% to Rs 6,296 crore in Q2 September 2020 from Rs 4,869 crore in Q2 September 2019. The bank's provisions and contingencies increased by 97.1% to Rs 4,016.81 crore in Q2 FY21 from Rs 2,037.97 crore in Q2 FY20. Of this, provisions for non-performing assets rose by 53.9% to Rs 3,532.81 crore in Q2 FY21 over Q2 FY20.

Stocks in Spotlight:

Blue Dart Express surged 11.43% after consolidated net profit surged 189.1% to Rs 42.33 crore on 8% rise in net sales to Rs 866.57 crore in Q2 September 2020 over Q2 September 2019. Consolidated profit before tax (PBT) soared 175.2% to Rs 57.07 crore in Q2 September 2020 as against Rs 20.74 crore in Q2 September 2019. Current tax expense for the quarter dropped 40.2% to Rs 5.05 crore as against Rs 8.44 crored in Q2 September 2019. Blue Dart Express paid one-time ex-gratia of Rs 26,238 to each Blue Darter (excluding senior management) in September 2020. This one-time ex-gratia had an impact of Rs 34.20 crore during the quarter.

Shriram Transport Finance Company fell 3.16% after consolidated net profit declined 10.52% to Rs 684.56 crore on 4.7% rise in total income to Rs 4,351.26 crore in Q2 September 2020 over Q2 September 2019. Profit before tax (PBT) fell 0.7% to Rs 920.42 crore in Q2 September 2020 as against Rs 926.87 crore in Q2 September 2019. Current tax expense for the quarter jumped 84.8% to Rs 226.77 crore as against Rs 122.68 crore in Q2 September 2019. The Q2 result was declared after market hours yesterday, 29 October 2020.

Mastek surged 6.54% after the company's consolidated net profit rose 27% to Rs 59.1 crore on a 6.1% rise in revenue from operations to Rs 409.7 crore in Q2 September 2020 over Q1 June 2020. Total EBITDA increased by 6.8% to Rs 90.6 crore in Q2 FY21 from Rs 84.8 crore in Q1 FY21. EBITDA margin was at 21.9% in Q2 FY21 as against 21.1% in Q2 FY21. In US dollar terms, the firm's revenue from operations rose 5.3% on constant currency to $55.1 million in Q2 FY21 over Q1 FY21.



Source: Capitalmarket.com