Wednesday Share Market Update: Sensex falls by 600 points, massive sell-off in Bank & Fin service stocks

Share Markets at a Glance:

US Presidential elections, rising COVID cases in US as well European countries, weak performances of global stock markets and profit-booking in Bank and Financial services stocks caused Indian share markets to fall heavily. BSE Sensex was down by almost 600 points and closed for the day at 39922.46. While, NSE Nifty de-grew by almost 160 points and settled at 11729.6.

All sectoral indices were in red, with Nifty Bank, Fin services and Realty indices falling more than 2%. Only BSE Telecom index was in green, which grew by 2.9% led by Bharti Airtel. India VIX, which measures volatility and fear in the market was also surged by 4.88%. Broader markets of Mid-cap and small-cap also declined by 1%.

Top Gainers/Losers of Share Market:

Bharti Airtel, UPL, Mahindra & Mahindra, Eicher Motors and Hero Motocorp were top winners in today’s session. On the other hand, HDFC (top loser for 2^nd consecutive day), IndusInd Bank, ICICI Bank, Adani Ports and Dr. Reddys Labs fell heavily today.

DII/FII Data of today’s Share Market:

DIIs did a net investment of Rs.1.48 crore during today’s session, while FII divested Rs.1130.98 crore today.

Titan Reports 37.81% drop in its net profit:

Fashion & Jewellery brand, Titan reported a net profit of Rs.199 crore for the quarter ended on September. It is 37.81% down from last year corresponding quarter’s profit of Rs.320 crore. Company’s revenue recovery rate improved substantially in this quarter. It improved to 55% for Watches and wearables division, 98% for Jewellery division and 61% for eyewear division.

Company said that customers are more willing to spend on plain gold jewellery and gold coins rather than pure discretionary items. Titan’s total income dropped by 1.72% to Rs.4389 crore during Q2.

Share price of Titan closed 1.1% down to Rs.1218.25.

NSDL takes a U-turn over Airtel’s Foreign Ownership Limit (FOL):

National Securities Depository ltd (NSDL) earlier in the day announced that it is increasing Bharti Airtel’s foreign ownership limit (FOL) from 49% to 100%. With the increase in FOL limits, Bharti’s weight in MSCI India index could have doubled from the current 1.92%. Based on this news, telco’s stock rallied by almost 12% to Rs.488.

But later in the day, NSDL took a U-turn by clarifying that, for the time being Airtel’s FOL will be monitored at 49%. It caused early high gains of Airtel’s stock to vanish, but still it managed to close at Rs.448, 3.38% higher than yesterday’s closing price in share market.

Dr. Reddy’s Labs Q2 profit declines by 30.22%:

Pharma major Dr. Reddy’s Laboratories Q2 consolidated net profit stood at Rs.762.3 crore, which in 30.22% lower on YoY basis. Consolidated revenue during the quarter increased 1.99% to Rs.4896.7 crore YoY.

Its global generics business showed strong growth of 21% on YoY basis. Company also faced a ransomware attack on Oct 22, after which it engaged with leading cybersecurity experts to address the incident. Share market price of the company fell by 3.13% and settled at Rs.4940.

Share Market Update: Quick Bytes

• Tata Elxsi has been selected as the global engineering services partner by Aesculap AG.
• Economy is reviving, but GDP growth to be negative or near zero this fiscal, says Finance Minister Nirmala Sitharaman.
• Q2 Results Today: L&T, Axis Bank, Hero MotoCorp, Dr Reddy’s Laboratories, Titan Company, APL Apollo Tubes, Aptech, AU Small Finance Bank, Balaji Amines, Blue Star, Can Fin Homes, Carborundum Universal, CG Power and Industrial Solutions, Cummins India, Firstsource Solutions, GSK Pharma, Heritage Foods, HSIL, IIFL Wealth Management, ICICI Securities, Marico, Max India, MCX, MOIL, Navin Fluorine International, Piramal Enterprises, PI Industries, PNB Housing Finance, Radico Khaitan, RBL Bank, Route Mobile, Schaeffler India, Tata Coffee, Texmo Pipes & Products, Thyrocare Technologies, UTI Asset Management Company and V-Guard Industries.
• Q2 earnings Tomorrow: Arvind, Bank of Baroda, Canara Bank, BPCL, Tata Chemicals, TVS Motor, Maruti Suzuki and Voda Idea among major names that will release their quarterly print.

Read our yesterday’s market update here.