Petrol demand has come back to normal levels but diesel demand is yet to pick up. Upcoming refinery in Tamil Nadu will have a capacity of 9 mtpa, says Chennai Petro pic.twitter.com/4xDP4ZWh3J
— CNBC-TV18 (@CNBCTV18Live) October 23, 2020
Earnings Impact: SBI Cards shares decline over 10% as co sees spike in bad loans
The share price of SBI Cards and Payment Services declined over 10 percent on Friday after the company reported poor quarterly numbers with deterioration in the asset quality.
The stock fell as much as 10.6 percent to the day’s low of Rs 762.70 per share on the BSE.
The firm posted a 46 percent dip in its net profit at Rs 206 crore in Q2. The credit card company had posted a net profit of Rs 381 crore during the corresponding period of the previous financial year.
The company’s bad debts surged 162 percent in the quarter under review to Rs 862 crore versus Rs 329 crore in the year-ago period.
The firm’s gross non-performing assets (NPAs) increased 196 bps to 4.3 percent in Q2FY21, compared to 2.33 percent in Q2FY20. Read more
Flipkart to buy stake in Aditya Birla Fashion: Aditya Birla Fashion & Retail (ABFRL) share price added over 6 percent as Flipkart to buy stake in company for Rs 1500 crore. Flipkart is buying 7.8% stake in Aditya Birla Fashion for Rs 1500 crore at Rs 205 per share. The Aditya Birla Fashion board approved issuance of equity shares on a preferential basis to Flipkart Investments Private Limited, a foreign portfolio investor, aggregating to Rs 1500 crore.
Jaikishan Parmar – Sr. Equity Research Analyst, Angel Broking Ltd
SBI cards reported Below expectation numbers for Q2FY21. Loan Book grew 4% YoY to Rs. 23,978 crore, while NII increased by 20% on the back of a strong NIM to 17.0% vs YoY 15.1% due to lower cost of funds. The major surprise came from provision cost, as in Q1FY21, the company did not take any COVID related provision and did not expected deterioration in asset quality, however, GNPA spiked and provision cost escalated. Provision cost came at Rs 862 crore (14.7%) vs QoQ Rs 485 crore (8.7%) & YoY Rs 329 crore (5.7%).
In Q2FY21 It took contingent provision worth of Rs 268 crore and total contingent provision stood at Rs 758 crore which is 3.2% of Loan Book. GNPA came at 4.3% vs QoQ 1.3% vs YoY 2.33%. Without the Supreme Court ruling on standstill accounts, the GNPA would have been at 7.46% and NNPA at 2.7%. Restructuring under the RBI RE (resolution plan) stands at Rs 2108 crore (8.8% of AUM). SBI cards is trading at 68x of trailing earnings. An investor would wait to analyse the behavior and slippage from the restructured book and final credit cost for FY21.
Market Update | Market retreating from opening highs; Nifty Bank turns negative’ Nifty gives up around 40 points from high point.
Steel Strips Wheels | The company has confirmed export orders of nearly 94,000 wheels for US & EU trailer market, to be executed in the month of November & December from its Chennai & Dappar plant.
Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd
On a consolidated basis for Q2FY21, Bharti Infratel revenue increased by 2% YoY to Rs 3,695 cr beats street expectation of Rs 3,554 cr. Operating free cash flows at Rs 1,035 Crore was down 4% YoY. EBIDTA and PAT were down by 3% and 24% YoY respectively. Company reported profit of Rs 733 cr against consensus estimates of Rs 750 cr. Total Tower base was 97,283 with closing sharing factor of 1.81.
On the operational side, both Indus and Infratel have continued supporting the telecom service providers in enhancing connectivity in the ongoing Covid-19 crisis. During the quarter, Bharti Infratel has witnessed the highest net tower additions in the last eight years. We believe the company is a key beneficiary of the increase in data usage and survival of Vodafone-Idea in the industry as they earn good profits when their tower is shared by at least two operators
Rupee Update | The Indian rupee opened lower by 11 paise at 73.64 per dollar against the previous close of 73.53. On October 22 domestic currency ended marginally higher at 73.53 per dollar versus the previous close of 73.58.
Technical View | The markets continue to remain within the range. We are in expiry week and a one-way move of the Nifty cannot be ruled out. What needs to be seen is whether the markets are successful in getting past 12,050 and moving towards 12,300 or it manages to break 11,650 and slides downward to 11,450. We should witness a convincing move in the coming week, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Remdesivir will give short term boost; emerging markets looking good: Wells Fargo Investment
“We have been conservative about our investments in emerging markets,” said Gary Schlossberg, Global Strategist at Wells Fargo Investment Institute in an interview to CNBC-TV18. “However, things are beginning to change and we are certainly taking a closer look at emerging markets. We have upgraded our rating, our view of that area particularly in Asian area,” he added. Speaking about US Presidential election, he said the Democrats were likely to win. According to him, US polling could narrow if any more irregularities emerge. On COVID, he said Remdesivir approval will inspire some confidence. Watch video for more
Earnings Impact: Shares of SBI Cards decline over 10% on deterioration in asset quality in Q2
Shares of SBI Cards and Payment Services declined over 10 percent on Friday after reporting deterioration in asset quality in the September quarter. Shares of SBI Cards and Payment Services declined over 10 percent on Friday after reporting deterioration in asset quality in the September quarter. The firm’s gross non-performing assets (NPAs) increased 196 bps to 4.3 percent in Q2FY21, compared to 2.33 percent in Q2FY20. The stock fell as much as 10.6 percent to the day’s low of Rs 762.70 per share on BSE.
Market Watch: Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services
“After a long consolidation of last 18 trading sessions, Ashok Leyland has given a decisive breakout beyond Rs 78-70 zone. We have seen significant open interest (OI) of around 50 percent in the entire series which clearly indicates that stock is now having potential to move by further 10-12 percent going forward. So recommending to buy on Ashok Leyland with stop loss of Rs 76 and here we are having the target towards Rs 86 level.”
“Havells has been making higher tops and higher bottom formation on the weekly and the daily chart. Every small decline is being bought and stock has seen the built up of long position followed by short covering. So recommending to buy with stop loss of Rs 710 for the upside target towards Rs 750.”
Opening Bell: Sensex opens 200 points higher, Nifty above 11,950; financials gain
Indian indices opened higher on Friday led by financials and IT stocks as gains in Asian peers supported the benchmarks. At 9:18 am, the Sensex was trading 211 points higher at 40,796 while the Nifty rose 61 points to 11,958. Broader markets were also in the green with both the midcap and smallcap indices up over half a percent each. All sectors were also positive at opening with Nifty Bank and Nifty Metal leading, up 0.9 percent and 0.8 percent, respectively. Nifty IT and Nifty Auto were also up 0.6 percent and 0.4 percent in early deals. Tata Steel, Cipla, ICICI Bank, Dr Reddy’s and Infosys were the top gainers on the Nifty50 index while GAIL, Shree Cement, HUL and Bajaj Auto led the losses.
Here are the top buy-sell calls by market experts for Friday:
Ashwani Gujral – ashwanigujral.com
– Buy Torrent Power with a stop loss of Rs 316, target at Rs 334
– Buy Petronet LNG with a stop loss of Rs 230, target at Rs 245
– Sell IndusInd Bank with a stop loss of Rs 620, target at Rs 595
– Sell Biocon with a stop loss of Rs 440, target at Rs 415
– Sell Muthoot Finance with a stop loss of Rs 1,210, target at Rs 1,165
Sudarshan Sukhani – s2analytics.com
– Buy L&T with a stop loss of Rs 920, target at Rs 955
– Buy Havells with a stop loss of Rs 714, target at Rs 735
– Buy ACC with a stop loss of Rs 1,615, target at Rs 1,650
– Sell HDFC Life with a stop loss of Rs 566, target at Rs 555
Trump’s executive order on visas for foreign workers cost $100 billion, claims think tank
President Donald Trump’s executive order restricting entry of skilled foreign workers into the US, mainly on H-1B and L1 visas, has resulted in an estimated loss of USD 100 billion to companies here, a top American think-tank claimed. The executive order signed by Trump on June 22, which had temporarily banned issuing fresh H-1B and L-1 visas till December 31, caused a negative impact to the valuation of Fortune 500 firms equivalent to over USD 100 billion in losses, Brookings Institute said in a report released this week. The H-1B visa, most sought-after among Indian IT professionals, is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. L-1 visa is for internal company transfers. More here
USFDA approves first COVID-19 drug: the antiviral remdesivir
The US Food and Drug Administration has approved the first drug to treat COVID-19: remdesivir, an antiviral medicine given through an IV for patients needing hospitalization. The drug, which California-based Gilead Sciences Inc. is calling Veklury cut the time to recovery by five days from 15 days to 10 on average in a large study led by the US National Institutes of Health.
It had been authorized for use on an emergency basis since spring, and now has become the first drug to win full US approval for treating COVID-19. Gilead says Veklury is approved for people at least 12 years old and weighing at least 40 kilograms who need hospitalization for their coronavirus infection. It works by inhibiting a substance the virus uses to make copies of itself.
Real economy situation in October is much better than previous months, says Uday Kotak
Each year, policy makers, corporate leaders and citizens are brought together on CNBC-TV18’s Public Affairs Forum of India (PAFI) to brainstorm over issues that matter to the country. Today, as we grapple with an economic contraction and uncertain environment, it is important to discuss the roadmap for recovery and growth. To address issues of trust and equity that often hold back collaboration of the government and the private sector, to chart out a roadmap for future action, to ensure the health of the government and corporate India’s balance sheets, Shereen Bhan spoke to Kotak Mahindra Bank CEO Uday Kotak and Vice Chairman of NITI Aayog Rajiv Kumar. More here
First up, here is quick catchup of what happened in the markets on Thursday
Indian equity indices snapped the four-day gaining streak to end lower on Thursday due to the slip in pharma, IT and banking stocks. Broader markets outperformed the benchmarks to end in green. Nifty Pharma remained the worst-performing index of the day. NTPC and Tata Motors were the Nifty50 top gainers while Hero MotoCorp and IndusInd Bank remained the index top losers. The Sensex ended 148.82 points or 0.37 percent lower at 40,558.49 while the Nifty settled at 11,896.45, down 41.20 points or 0.35 percent.
Welcome to CNBC-TV18’s Market Live Blog
Good morning, readers! I am Pranati Deva from the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!
