Important Update: PN Vasudevan, CEO, Equitas SFB says, “Our deadline to go public was September 2019 as per RBI rules. We missed September 19 deadline for listing because we were trying to get regulatory nod for a scheme of arrangement which SEBI rejected. Listing was further delayed due to the pandemic.”
Top large, mid, and small-cap stocks bought and sold by mutual funds in September
Equity mutual funds witnessed outflow for the third consecutive month in September with investors moving out Rs 734 crore compared to an outflow of Rs 4,000 crore in August, the AMFI data showed. Except for equity-linked saving schemes (ELSS), focused fund and sectoral categories, all the other equity categories witnessed net outflow. The August outflow came on the back of large pull-out from multi-caps due to the Sebi guidelines.
Meanwhile, SIP inflows remained at Rs 7,788 crore in September as compared to Rs 7,792 crore in August
Besides, investors pulled out over Rs 51,900 crore from debt mutual funds (MFs) last month compared to Rs 3,907 crore in August, AMFI data added.
Overall, the mutual fund industry witnessed a net outflow of a little over Rs 52,000 crore across all segments during the period under review, as against Rs 14,553 crore in August. This outflow could be attributed to withdrawals from liquid, equity and hybrid schemes. Click here to read
Stock Update: Adani Green has expanded its joint venture with TOTAL with acquisition of solar assets worth Rs 1,632 crore, it said in an exchange filing. It has transferred operating solar assets worth 205 MW to its JV. Pursuant to the transaction, TOTAL has invested a sum of Rs 310 crore in the JV, the filing added further. The stock was trading slightly lower to Rs 719.65 per share on the NSE.
New Listing: The shares of Likhitha Infrastructure traded 13 percent higher to Rs 136 per share on the NSE against the issue price of Rs 120. However, the scrip had a subdued listing today, with 8.4 percent premium to its issue price. Read more about it here
Experts’ View: “On the MCX, gold prices are expected to trade lower in today’s session. As for today traders can go for sell in gold at Rs 50,600 levels with the stop loss of Rs 51100 levels for the target of 49500 levels. They can also go for sell in Silver at Rs 61,200 levels, with the stop loss of 61,700 levels and for the target of 59,800 levels,” said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking Ltd
Gold rate today: Yellow metal falls on steady dollar; Support seen at Rs 50,200 per 10 grams
Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday tracking weakness in the international spot prices amid a steady dollar and uncertainty over stimulus package in the US. At 10:30 am, gold futures for December delivery fell 0.21 percent to Rs 50,435 per 10 grams as against the previous close of Rs 50,542 and opening price of Rs 50,314 on the MCX. Silver futures traded 0.66 percent lower at Rs 61,195 per kg. The prices opened at Rs 61,114 as compared to the previous close of Rs 61,603 per kg. “Uncertainties over the additional corona relief fund by US underpinned the dollar which might weigh on gold prices. On the MCX, gold prices are expected to trade lower in today’s session,” said Anuj Gupta – DVP- Commodities and Currencies Research, Angel Broking Ltd.
Jaikishan Parmar – Sr. Equity Research Analyst, Angel Broking Ltd
Equitas Small Finance Bank (SFB) is coming up with IPO on 20 Oct 2020 to raise Rs.532cr. The fresh issue of equity shares of the Equitas SFB IPO has revised recently downward to Rs 280 crore from Rs 550 crore planned earlier. The IPO consists of a fresh issue of 8 crore equity shares and an offer for sale of 7.2 crore equity shares.
Market source predicting IPO could be in the range of 31 – 35 per share. At the rate of 35 Equitas SFB demanding valuation of 1.3x of Q1FY21 Book value. Peers are trading at a higher valuation, Ujjivan 1.8x and AU SFB at 4.9 x of Q1FY21 Book value. We believe Equita SFB valuation in the range of 1 -1.2x will garner healthy interest from investors.
Interest waiver: Real estate shouldn’t expect any special relief, says Shardul Shroff
The Supreme Court has told the government to implement the interest-on-interest waiver scheme for small borrowers. So what does this mean for banks and the real estate sector. Interest-on-interest here means that borrowers will have to pay additional interest if they had availed the moratorium offered by banks between March and August. Shardul Shroff, Executive Chairman of Shardul Amarchand Mangaldas & Company shared his thoughts on this in an interview with CNBC-TV18. Real estate has been among the sectors most vocal in its demand that interest-on-interest be waived. “I do not think the court has now the opportunity to look into real estate issues because it has taken quite a long time,” Shroff said. According to him, banks will not be asked to bear the tab of interest on interest waiver. Watch video for more
Earnings Impact: Tata Elxsi shares jump 5% after it reports a 58% rise in Q2 net profit
Shares of Tata Elxsi jumped over 5 on Thursday after the company announced robust results for the September quarter. The design and technology services provider reported a 58.3 percent increase in net profit to Rs 78.8 crore in Q2 versus a net profit of Rs 49.8 crore in the year-ago period. Its revenue from operations rose 11.5 percent to Rs 430.2 crore for the said quarter from Rs 385.8 crore in the corresponding period a year ago. The stock rose a much as 5.2 percent to Rs 1,533.55 per share on BSE.
Den Networks Q2 net profit declines 61.4% to Rs 36 crore
Cable and broadband services provider Den Networks on Wednesday reported a 61.41 percent decline in its consolidated net profit to Rs 36.77 crore in the second quarter ended September 30. The company had reported a net profit of Rs 95.30 crore in the September 2019 quarter, Den Networks said in a regulatory filing. Its total income stood at Rs 378.81 crore, up 1.06 percent during the quarter as against Rs 374.82 crore a year ago. Den Networks’ total expenses were at Rs 338 crore as against Rs 365.27 crore, down 7.46 percent. Its revenue from cable distribution network was Rs 318.82 crore and from broadband services, Rs 18.84 crore. Shares of Den Networks Ltd on Wednesday settled at Rs 85.75 on the BSE, down 3.43 percent from the previous close.
Likhitha Infrastructure lists at a premium of 8.4% at Rs 130 per share against issue price
Shares of Likhita Infrastructure made a lukewarm debut on bourses on Thursday, at Rs 130 per share on the BSE, 8.41 percent premium against the issue price of 120 per share. The shares surged as much as Rs 131 in early trade. The Hyderabad-based infrastructure company had come out with a Rs 61-crore issue, small compared to most recent IPOs on the main board, with a final issue price of Rs 120 per share. The issue was subscribed 9.51 times on the last day of its bidding, though the company had to extend its closing date of the IPO to October 7 due to tepid response from the Qualified Institutional Buyers (QIBs). Brokerages had mixed ratings for the IPO. Considering small issue size, some recommended avoiding the IPO while others remained hopeful with a long-term view.
MTNL up over 6% after Telecom dept asks PSUs & ministries to use networks of BSNL & MTNL
Residential sales bounce back in July-Sept quarter, but prices see muted growth
In what can be considered as a sharp recovery for the real estate sector, research reports suggest that India’s eight prime residential markets saw an increase of 85 percent in the residential sales in the July-September quarter as against the performance in the April-June quarter in the current calendar year. According to the Real Insight Q3 2020 report by online real estate brokerage firm PropTiger.com, the quarterly analysis of India’s eight prime residential markets show that the residential home sales aggregated to 35,132 units during Q3 of the current calendar year, marking an increase of 85 percent over the previous quarter. The report said the housing units in the sub-Rs 45 lakh price bracket, categorised as the affordable housing segment under income tax laws in India, made the biggest contribution to sales during the quarter, contributing 45 percent to overall sales numbers. More here
Opening Bell: Sensex, Nifty open flat; Infosys up 3.5% post Q2 earnings
Indian indices opened flat on Thursday as gains in IT stocks post Infosys’ earnings were capped by financials and heavyweight RIL. Infosys rose almost 3.5 percent in early deals after it beat street estimates, with profit rising 14.5 percent QoQ in September quarter. At 9:18 am, the Sensex was up 31 points at 40,825 while the Nifty rose 19 points to 11,989. The broader markets were also positive in early deals with midcap and smallcap indices up 0.3 percent each. Among sectors, the Nifty IT index rose the most, up 0.8 percent followed by Nifty Auto and Nifty Metal, which were up 0.6 percent each. Meanwhile, Nifty Bank and Nifty Fin Services fell 0.7 percent in early deals and Nifty FMCG was down 0.4 percent.
Infosys expands presence in Mexico, Canada as H-1B visa issue rages on in US
Infosys is expanding its presence in Mexico and Canada to offer same time-zone services to clients in the US as the Trump administration continues to clamp down on H-1B visa rules which IT companies depend on. The Trump administration published a new set of rules this month that has led to a hike in wages for H-1B visa holders and more stringent inspection and monitoring of employers. However, companies such as Infosys, TCS and Wipro have been able to lower their dependence on H-1B visas over the years through increased localisation. “The new wage increase will impact only new labour conditions applications (LCAs) for H-1B visas, not existing ones,” Infosys COO Pravin Rao said. More here
Infosys to see 50% revenue from digital ‘soon’, says CEO Salil Parekh
Infosys’s stellar performance in the September quarter was backed by the 25.4 percent year-on-year growth in its digital business, which now contributes 47.3 percent of the company’s total revenues. “The investment we made in digital over the last few years has helped us now. We will cross the 50 percent mark for digital contribution soon,” CEO Salil Parekh said during the company’s quarterly earnings conference on Wednesday. Parekh, however, did not specify a timeline for digital bringing in half the revenues. Infosys has been growing it’s digital contribution steadily over recent years. Digital revenues as part of total revenues stood at 38.3 percent in the September quarter of last year, and at 31 percent in the same quarter in 2018. More here
Infosys Q2 results: IT major reports net profit at Rs 4,845 crore, revenue at Rs 24,570 crore
Infosys, the country’s second-largest software services exporter, reported a 14.5 percent sequential rise in net profit at Rs 4,845 crore in the second quarter of FY2021. Profit was higher than CNBC-TV18’s analysts poll estimated of Rs 4,534 crore. The profit in the June quarter was at Rs 4,233 crore. Consolidated revenue from operations increased 3,8 percent to Rs 24,570 crore during the quarter as compared to Rs 23,665 crore in the previous quarter. In dollar terms, revenue rose 6.1 percent QoQ to $3,312 million from $3,121 million. The company reported constant currency revenue growth at 4.0 percent, QoQ and 2.2 percent, YoY. Infosys has revised its revenue growth guidance upward to 2-3 percent in constant currency for the financial year 2020-21, from 0-2 percent earlier. The full year operating margin guidance also revised upward to 23-24 percent, against 21-23 percent earlier.
Here are today’s global cues:
First up, here is quick catchup of what happened in the markets on Wednesday
The Indian benchmark equity indices, Sensex and Nifty recovered from the day’s low to end higher Wednesday led by gains in banking and realty stocks. Last-hour gains helped Sensex and Nifty record a 10-day gaining streak for the first time since January 2015. The Sensex ended 169.23 points or 0.42 percent higher at 40,794.74 while the Nifty gained 36.55 points or 0.31 percent to close at 11,971.05. Sensex and Nifty gained 515 points and 149 points respectively from lows. The Nifty Bank saw a recovery of 725 points from lows to close 1.6 percent higher. Broader indices ended mixed with Nifty Smallcap100 gaining 0.26 percent while Nifty Midcap100 ending 0.16 percent lower.
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