Nifty50: 14,590 ▼ 54 (-0.3%)
Sensex: 49,624 ▼ 167 (-0.3%)
The Sensex crossed the 50,000 milestone, leading to some early cheer. However, profit booking spooked the party in the last hour of the day. The market breadth turned negative, with 33 of the Nifty50 stocks closing in the red.
Every major sectoral index closed in the red, with the Nifty PSU Bank (-3.2%) and Nifty Realty (-2.5%) indices losing the most.
| Top gainers | Today's change |
| Tata Motor | ▲ 6.3% |
| Bajaj Finance | ▲ 2.6% |
| Reliance | ▲ 2.5% |
| Top losers | Today's change |
| ONGC | ▼ 3.3% |
| Tata Steel | ▼ 2.9% |
| Coal India | ▼ 2.6% |
Here are the top stories of the day.
Bajaj Auto scoots ahead on record revenues
- Shares of Bajaj Auto surged as high as 4.5% intraday as it reported its highest-ever revenues and profits. Its revenues from operations grew 17% YoY to ₹8,909 crore and consolidated net profit jumped 30% YoY to ₹1,716 crore.
- The strong performance was driven by high operating leverage and a better product mix. The stock witnessed some profit booking in line with the fall in the broader market and ended the day with gains of 1.6%.
Decorative paints boost profits for Asian Paints
- Q3 profits for the country’s largest paint maker shot up 62% YoY to ₹1,265 crore for Q3, much higher than street estimates of ₹971 crore. Further, the company’s revenues grew 25% to ₹6,788 crore.
- It witnessed a strong demand recovery across business segments and regions. Shares of Asian Paints rose 1.5% today, as did shares of decorative paint makers such as Berger Paints (+1.6%) and Kansai Nerolac (+3.1%). Akzo Nobel (known for the Dulux brand) was an exception as it fell 1.2%.The decorative paints segment is gaining attention due to a positive response for the Indigo Paints IPO. Click here to apply.
Kajaria Ceramics gains on demand from smaller cities
- The rise in demand for tiles from smaller cities helped Kajaria Ceramics to post a 11% YoY growth in sales volumes. Even revenues from operations clocked a 13% YoY rise to ₹838 crore.
- Tighter cost controls helped boost margins and led to a 93% YoY rise in net profit to ₹118 crore. The stock gained 1.2% today, along with shares of other ceramic makers, such as HSIL (+6.3%), Somany Ceramics (+5.0%) and Cera Sanitaryware (+1.6%).
Consumer durables stocks in demand
- In its Q3 results, Havells reported revenue growth of 46% YoY in electrical consumer durables. Further, its subsidiary Lloyd, which primarily makes AC and fridges, posted revenue growth of 70% YoY. Havells was able to gain share from the unorganised sector and also benefited from import prohibitions.
- The strong growth rates reported by Havells triggered buying in shares of peers such as Vguard (+9.2%) Crompton Greaves (+7.9%), Whirlpool (+6.0%), Polycab (+6.1%) and Voltas (+5.0%).
Closing bell
After a flying start and creating history with #SensexAt50k, the markets witnessed sharp profit booking, which could make traders nervous. Technically, the market seems to be losing momentum. Tomorrow, Reliance Industries is expected to announce its Q3 results and the street is expecting a nearly 3% YoY decline in consolidated net profit. As we have mentioned earlier, volatility would be the order of this month and traders must be prepared for it.
Good to know
What are NPAs?
If interest is not received for 3 months, a loan turns into a non-performing asset (NPA), also referred to as gross NPA. A high gross NPA ratio means that the bank’s asset quality is in bad shape. Banks set aside (provide for) funds for some loans going bad. The net NPA is that portion of bad loans which has not been provided for in the books.
Yay ? or ? Nay?
We'd love your thoughts on this market recap.
The IPOs of Indigo Paints and Home First Finance are live on Upstox. You can subscribe to the IPOs with Upstox here.
Haven't tried out Upstox yet? Click here to open your account now!
Disclosures and Disclaimer
Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.