▲ Nifty: 12,719 (+0.23%) ▲ Sensex: 43,443 (+0.20%)
The benchmark indices seemed to be in holiday mode today, as there was no decisive movement in the markets. However, on a weekly basis, the Nifty50 posted gains of nearly 3.7%. Among the stocks, Eicher Motors (+7.4%), Bajaj Finserv (+3.7%) and Coal India (+3.0%) were the top Nifty gainers, whereas Tata Motors (-3.3%), L&T (-1.9%) and HDFC (-1.1%) were down, mainly on account of profit booking.
Here are the top stories of the day.
Jubilant FoodWorks hits lifetime high as sales recover
Jubilant FoodWorks, which runs the Domino's Pizza restaurant chain in India, hit an all-time high today after its sales recovered significantly. In Q2, it saw sales reach 82% of last year’s levels versus only 40% in Q1, which was affected by the lockdown. Further, sales have recovered to 96% in October, which builds the case for the strong investor interest seen today. The delivery and take-away channels are helping to regain lost ground, even as people are gradually stepping out for dine-ins. The company's Q2 revenues stood at ₹805 crore, down 18.5% YoY and net profit stood at ₹77 crore, up 1.3% YoY. The stock rose 6.3% today.
Sanitaryware stocks up as construction sector revives
Strong Q2 results of cement companies are reflecting a revival in both demand and construction activities. Further, housing sales across major cities in India have picked up in the past few months. This seems to have also piqued investor interest in ceramics and sanitaryware stocks. Today, shares of Somany Ceramics (+7.3%), Cera Sanitaryware (+10.7%), HSIL (+7.0%) and Kajaria Ceramics (+5.2%) were all on the rise. Net sales of these companies are back to pre-Covid levels and the stock prices are moving in the same direction. Somany Ceramics’ revenues were almost unchanged from last year, while Cera Sanitaryware reported a minor 3% decline. Owing to lower raw material costs and strong cost controls, the companies are seeing improved margins or are at least maintaining them at last year's levels.
Radiator maker Banco Products soars on strong Q2
Vadodara-based auto-ancillary company Banco Products reported revenues from operations of ₹438 crore, up 15% year-on-year. Also noteworthy is the 157% jump in the company’s net profit, which stood at ₹40.9 crore. The company’s margins improved because of lower raw material costs and other expenses. The company’s products are used in major automobile segments, most of which have seen good sales volumes in recent months. The stock rose +14.5% today coupled with a nearly 30-fold increase in trading volumes on the BSE.
Closing bell
The markets were lacklustre today, which also reflected in the fall in the India volatility index. Only time will tell whether this is a pause in the rally or a calm before the storm. Meanwhile, unlike India, Covid cases in major developed countries are on the rise and pose a risk of fresh lockdowns. If that happens, there could be supply chain disruptions for Indian companies that import products from these countries.
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