Thursday Stock Market Update: Stimulus couldn’t cheer the market, loses 8-day winning streak

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Share Markets at a Glance:

Indian government’s latest stimulus announcement couldn’t hold stock market from dropping almost 0.5%. Though Fertilizer and realty stocks were in market demand after favorable measures for these sectors in stimulus package. After 8-day winning streak, Nifty fell today by 58.35 points to close at 12690.8. At the same time, Sensex also dropped by 236.48 points to settle at 43357.19 level.

Sector-wise, Nifty Bank accompanied by Fin Services and Metal sector stocks were under selling pressure. While, FMCG, Auto and Media sector stocks were in good demand during the day. Broader markets of Mid and small cap stocks outperformed their bluechip peers. India VIX also fell sharply by almost 6.4% to settle at 20.62.

Share Market: Top Gainers/Losers:

Hindustan Unilever, Grasim Industries, Shree Cement, Hindalco and ITC were among the top gainers in today’s session. On the other hand, SBI, Kotak Mahindra Bank, Coal India, IndusInd Bank and NTPC were among top losers today.

DII/FII Data:

Today’s DII/FII Data is not yet released on NSE website.

Pre-Diwali Stimulus of Rs.2.65 lakh crore to Indian Economy by Govt:

Stimulus Package Key Points:

• Aatmanirbhar Bharat Rozgar Yojana: Government will pay EPF contribution of new hires up to 2 years, to boost recruitment by employers.
• For real-estate developers and buyers, income tax relief will be provided to 20 per cent of the differential between circle rate and agreement, compared to 10 per cent earlier. This would be applicable on primary sale of residential units of value up to Rs 2 crore.
• Government extended the current five-year PLI (production-linked incentive) scheme extended to ten more sectors, with a total allocation of Rs 1.46 lakh crore.
• It also extended the Emergency Credit Line Guarantee Scheme (ELGS 1.0) up to March 31.
• The PM Awaas Yojana-Urban (PMAY-U) Rs 18,000 crore will be provided for PMAY-U over the 2020-21 budget estimates through additional allocation.
• FM announced Rs.65,000 crore for fertilizer subsidy for farmers.
• Additional Rs.10000 crore to PM Garib Kalyan Rozgar Yojana in current FY. Can be utilized for MNREGA and PMGSY.
• It also allocated Rs.900 crore for development of COVID vaccine to Department of Biotechnology.

Eicher Motors Q2 Results: Net profit drops by 40%, Royal Enfield sales down by 9%

Siddhartha Lala led Eicher Motors posted a net profit of Rs.343.34 crore during Q2 of FY21, which is 40% down from its last year Q2’s profit of Rs.572.69 crore. Consolidated revenue from operations also declined by 2.69% to Rs.2133.6 crore on YoY basis.

Sale volume of its signature Royal Enfield bike also declined by 9% YoY to 149120 units during this quarter. Ahead of its Q2 result, Eicher Motors’ share market price closed at Rs.2346.05, up by 0.83% from yesterday’s closing price.

Share Market Quick Bytes:

• Economy could return to positive growth by 3^rd quarter of this FY, says RBI.
• Engineers India approved buyback proposal at per share price of Rs.84, aggregating up to Rs.586.9 crore.
• Jubilant Foodworks Q2 net profit grew by 1.3%, while revenue down by 18.5%
• Q2 Results: Eicher Motors, Engineers India, Grasim Industries, HUDCO, Infibeam Avenues, IRCTC, IRB Infrastructure Developers, Jubilant FoodWorks, Aksh Optifibre, Alok Industries, Apollo Micro Systems, Aarey Drugs, Arvind Fashions, Avanti Feeds, Bajaj Hindusthan Sugar, Bharat Dynamics, BF Utilities, Clariant Chemicals, Cochin Shipyard, Dishman Carbogen Amcis, Fortis Healthcare, Gujarat Pipavav Port, HCC, HEG, KNR Constructions, Mazagon Dock Shipbuilders, Mahanagar Gas, Natco Pharma, Page Industries, PFC, Punjab & Sind Bank and Sun TV Network

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