Pre Market Analysis 27-10-2021

Market Opening - An Overview

Nifty futures trading on Singapore Exchange was 0.3% lower at 18,288.5, indicating that the benchmark Indian equity indices – Sensex and Nifty – are likely to open lower on Wednesday.

Asian stocks fell on Wednesday as traders weighed the latest U.S. corporate results and a rise in Australian core inflation highlighting the increasing price pressures in the global economy. Japan’s Nikkei fell 0.55% and Topix was down 0.42%. Hang Seng plunged 1.73% and CSI 300 dropped 1.22%.

The Indian rupee gained 12 paise to close at 74.96 against the US dollar on Tuesday.


Upcoming Earnings

Larsen & Toubro, ITC, Maruti Suzuki India, IndusInd Bank, Bajaj Auto, Titan Company, Happiest Minds Technologies, Lupin, Punjab National Bank, SBI Life Insurance Company, Zee Entertainment Enterprises, Aarti Drugs, Adani Enterprises, Adani Ports and Special Economic Zone, Aegis Logistics, Apollo Tricoat Tubes, Arvind, Asahi India Glass, Astec Lifesciences, Balaji Amines, Cummins India, Dalmia Bharat, Deepak Nitrite, Exxaro Tiles, Geojit Financial Services, Greenpanel Industries, IIFL Finance, IIFL Wealth Management, India Grid Trust, Indian Overseas Bank, JK Paper, KEC International, KPR Mill, Lakshmi Machine Works, Mahindra Logistics, Phillips Carbon Black, Poonawalla Fincorp, PSP Projects, Ramco Systems, Raymond, Reliance Power, Shriram City Union Finance, SKF India, Sona BLW Precision Forgings, Tata Chemicals, Tube Investments of India, Torrent Power, TTK Prestige, United Breweries, United Spirits, and Welspun India.

FII/DII trading data on Tuesday (26-10-2021)

CategoryBuy ValueSell ValueNet Value
*All numbers are in INR crore

Stocks in News Today

Axis Bank: The company’s registered a 86% growth in net profit at Rs 3,133 crore in the second quarter in Q2FY22, helped by strong fee income, fall in provisions. The lender had posted a net profit of Rs 1,683 crore in Q2FY21. Net interest income (NII) grew by 8% year-on-year to Rs 7,900 crore in Q2FY22, compared with Rs 7,326 crore in Q2FY21. The bank noted that growth is recovering in the economy and it must be structurally positive. Net NPAs inched up to 1.08% in September 2021, from 0.98% in the year-ago period.

Kotak Mahindra Bank: The lender reported a 1.43% year-on-year (YoY) increase in consolidated net profit in Q2FY22 at Rs 2,989 crore, as against Rs 2,947 crore in the year-ago quarter. Its net interest income (NII) stood at Rs 4,021 crore, up 3.2% YoY from Rs 3,897 crore in Q2FY21. Net Interest Margin was 4.45% in the reported quarter, compared with 4.50% in Q2FY21. Net NPAs also declined sequentially by 22 basis points to 1.06% but remained higher than 0.74% registered in the year-ago period.

Bajaj Finance: The NBFC reported a 53% jump in consolidated net profit at Rs 1,481 crore for the quarter ended September on robust interest income. The company had registered a net profit of Rs 965 crore in the same quarter last fiscal. Total income rose by 19% to Rs 7,732 crore during the reported quarter, as against Rs 6,520 crore in the same quarter of FY21. Its interest income grew by 16% to Rs 6,687 crore in the quarter, from Rs 5,763 crore in the same period last year.

Torrent Pharma: The company’s profit after tax (PAT) for the second quarter ended September 2021 rose 2% year-on-year (YoY) basis to Rs 316 crore, compared to Rs 310 crore in Q2FY21. The company’s revenues grew by 6% YoY to Rs 2,137 crore in Q2FY22, from Rs 2,017 crore in Q2FY21. Torrent Pharma’s US sales were lower due to price erosion in its base business and lack of new approvals that are pending due to re-inspection of facilities.

Central Bank of India: The public-sector lender reported an over 55% jump in its net profit to Rs 250 crore for the quarter ended September, compared with a net profit of Rs 161 crore during the same quarter of the previous fiscal. Total income was down at Rs 6,503.39 crore, as against Rs 6,762.36 crore in the year-ago period. Net interest income rose 5.99 per cent to Rs 2,495 crore, as against Rs 2,354 crore earlier. and NIM improved to 3.36% in the quarter from 3.21% in the year-ago period. Net non-performing assets (NPAs or bad loans) reduced to 4.51 per cent as of September 30, 2021, from 5.60 per cent in the same period last year.

Cipla: The pharmaceuticals company posted a 7% year-on-year (YoY) rise in profit after tax (PAT) in the second quarter of FY22 helped by a 10% YoY growth in revenues. Cipla posted a PAT of Rs 711 crore, and revenue from operations of Rs 5,520 crore during the quarter.

Sanofi India: The company reported a net profit of Rs 529.8 crore for the third quarter ended September of FY22, helped by Rs 489.2 crore gain from the sale of its nutraceuticals business. The company had reported a net profit of Rs 132.9 crore in the same quarter quarter of the previous fiscal. The company’s revenue from operations rose to Rs 754.5 crore as compared to Rs 686.6 crore in the year-ago period.

HDFC: The company and India Post Payments Bank (IPPB) has entered into a strategic alliance to offer home loans to nearly 4.7 crore customers of the payments bank. IPPB aims to make HDFC’s home loan products and its expertise available to its customers across India by leveraging its country-wide network of 650 branches and over 1,36,000 banking access points (Post offices), HDFC said in a statement.

Zensar Technologies: The company reported a 7.5 per cent rise in net profit to Rs 94.4 crore in July-September quarter of FY22, as against a profit of Rs 87.8 crore in the year-ago period. The company’s revenue from operation rose 12.2% to Rs 1,050.6 crore in the quarter, from Rs 936.4 crore in the same period last financial year. The company’s CEO said the growth was broad-based as good performance was witnessed across all geographies, service lines and verticals.

Persistent Systems: The company posted a 58.6% in its consolidated net profit to Rs 161.7 crore in Q2FY22, from a net profit of Rs 101.9 crore in the year-ago period. Operating revenue increased 34.1% to Rs 1,351.2 crore in the quarter, as against Rs 1,007.7 crore a year ago.

Union Bank of India: The lender has slashed interest rate on home loans by 40 basis points. The minimum rate of interest now starts at 6.40 per cent, instead of 6.8 percent earlier. The new rates are effective from October 27 and it is applicable to customers applying for new loans or those who wish to transfer existing loans, including balance transfers, Bank said in a statement.

ABB India: The company posted over 40% jump in its net profit at Rs 120 crore for the July-September quarter, boosted by higher revenues. The net profit was Rs 85 crore in the year-ago quarter. Profit after tax stood at Rs 120 crore, a growth of 40% over July-September 2020 driven by solid execution. The company, which follows January to December financial year, posted total income at Rs 1,803.20 crore in the quarter, as against Rs 1,632.27 crore in the same period last fiscal.

IRB Infrastructure Developers: The company will raise up to Rs 5,347 crore through a preferential allotment of equity shares to Spain’s infrastructure group Ferrovial SA and Singapore state investor GIC, the largest fundraise by an Indian road developer. Ferrovial subsidiary Cintra Global SE will invest equity capital of up to Rs 3,180 crore for a 24.9% stake, while GIC will invest up to Rs 2,167 crore for a 16.9% stake. Virendra Mhaiskar, founder promoter of IRB said the company is betting big on the infrastructure space in the medium to long term and this capital infusion will help them to participate in the massive infrastructure development and monetisation plan of the Indian government. Meanwhile, it posted a consolidated net profit of Rs 42 crore in Q2FY22, from a a consolidated loss of Rs 20 crore in the year-ago period. Total income during the quarter rose to Rs 1,504 crore, from Rs 1,169 crore in the same period last year.

IEX: The energy exchange will seek shareholders’ approval to issue bonus shares through postal ballot notice. The company has issued postal ballot notice to seek approval of shareholders on a proposal to issue bonus shares to members, according to its exchange filing. The results of the postal ballot/e-voting will be announced not later than two working days of the closure of the e-voting which is likely on or before October 29, 2021.

PVR Cinemas: The company has forayed into the customised cleaning and disinfecting services business under its newly-launched vertical V-Pristine. Under V-Pristine, the company will provide its service to commercial and residential segments, extending the same quality and standards that the customer is used to at its premium cinema halls, it said.