Nifty, Sensex May Snap Back - Thursday closing report
Moneylife Digital Team 21 October 2021
We had mentioned in Wednesday’s closing report that Nifty, Sensex may continue to be under pressure. With heavyweights dragging due to selling pressure, India’s key equity indices closed lower on Thursday. The S&P BSE Sensex ended 336 points or 0.55% down at 60,923, while the Nifty 50 closed at 18,178, down 88 points or 0.48%. While Sensex and Nifty closed lower, Nifty Bank ended over 40,100 level, a new record high for the index. 
 
On Thursday, the indices opened higher and ended with a loss for third straight day. On the NSE, there were 952 advances, 1,028 declines and 67 remained unchanged. The trend of the major indices on Thursday’s trading are given in the table below:
 
 
Among the Sensex stocks, Asian Paints was the top loser, tanking around 5%. It was followed by Reliance Industries, Infosys, Tata Steel, TCS and Dr Reddy’s. On the other hand, Kotak Bank, HDFC, ICICI Bank and NTPC were among the gainers. Nifty Bank hit a new record high to breach 40150-level for the first time, supported mainly by Kotak Mahindra Bank, which closed as top gainer at around 7% gains at the close.
 
Tata Motors gained second-most in the market and closed up over 4.5%, followed by Grasim by gaining 3.5%. HDFC, BPCL, Divis Lab, ICICI Bank, Coal India, Eicher Motor surged between 1%-2% in an otherwise negative market.
 
In major news, the Bombay High Court has asked Zee Entertainment to call for the EGM as requested by its shareholders Invesco and OFI Global China. A retired judge will chair the EGM.
 
TVS Motors declared its Q2FY22 results; revenue was at Rs5,619.4 crore as compared to Rs4,605 crore in the same quarter last year. Profit stood at Rs277.6 crore up by 41.4% from Rs 196.3 crore.
 
JSW Steel Q2FY22 revenue was at Rs32,503 crore as compared to Rs 19,264 crore in the same quarter last year. The profit was at Rs 7,179 crore (Rs 1,595 crore). The operating margin rose 910 basis points to 32%.
 
Shoppers Stop’s Q2FY22 revenue doubled to Rs642.07 crore from Rs296.98 crore in the same quarter the previous year. Its net loss was at Rs3.68 crore. The stock closed 20% up at Rs 336.65.
 
Asian Paints’ Q2FY22 revenue was at Rs7,096.01 crore as compared to Rs 5,350.23 crore in the previous year. Its profit declined by 29% to Rs605.17 crore from Rs851.9 crore under the pressure of rising raw materials. The stock was down 5.21% at Rs 3,003.50 on closing.
 
Havells India’s Q2FY22 results disappointed the investors. Its margins stood at 13.8% down 338 basis points, even though the company posted a strong 31% YoY revenue growth at Rs3,221 crore, on the back of healthy performance from the cable, switchgear, electrical consumer durable, Lloyd and lighting segment. The stock closed around 8% lower.
 
CG Power’s profit jumped around 72% in Q2FY22, to Rs188.11 crore over Rs109.37 crore in the same period last year. Revenue more than doubled to Rs1,468.56 crore compared with Rs678.64 crore a year-ago period.
 
Bank of Maharashtra’s profit more than doubled from Rs130 crore to Rs264 crore Q2FY22 results. Its net interest margin improved from 2.57% to 3.27%. Its net interest income grew 34% at Rs1500 crore.
 
IDBI Bank’s net profit in Q2FY22, was up by 74.8% to Rs567.1 crore compared to Rs324.4 crore. Its net interest income was Rs1,853.6 crore up by 9.4% from 1,694.2 crores last year.
 
Rakesh Jhunjhunwala increased his stake in Tata Motors DVR (Differential Voting Rights) to 2.7%. He bought additional 10 million equity shares in Q2FY22. The stock was up 10% today. He also increased his stake in SAIL by 0.37% in Q2FY22, and owns 1.76%. 
 
NBCC has been awarded orders of Rs375 crore in multiple states as a management consultant. 
 
Sectoral indices witnessed the mixed performance, with Nifty IT, Metal, FMCG, and Pharma slipping in today’s trade. Nifty IT and Metal slumped most by over 2.5% and 1.7% at the close. On the other hand, Nifty Bank closed positive along with Auto and Financial Services.
 
Nifty IT fell by 2.5% weighed by MindTree, Coforge and L&T Technology Services. The Nifty Metal index too fell 1.7% dragged by Hindustan Zinc and Welspun Corp. 
 
Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo ended in red, while Shanghai was positive.
 
Stock exchanges in Europe were trading on a negative note in mid-session deals.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
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