Morning update for 12th November 2020

Indices at 10:30 am

▼ Nifty 12,669 (-0.63%)            ▼ Sensex  43,293 (-0.69%)

▲ Nifty Midcap 100 18,145 (+0.39)      ▲ Nifty Smallcap 100 5,968 (+0.86%)

Stocks in the news

Shree Cement

• Q2 net profit rose 77% YoY to ₹547 crore beating street expectations of around ₹370 crore.
• Revenues grew about 8% YoY, but operating margin expanded to 32.7% from 30.1% during the same period last year, which helped boost profits.
• The stock is up 1.2% today.

Bharat Forge

• The impact of the pandemic weighed on auto component major Bharat Forge in Q2. The company reported a net loss of ₹1.3 crore versus a profit of ₹205 crore in Q2 last year. Its revenues declined 36% YoY due to weak performance of European and North American operations.
• On a sequential basis, the loss has narrowed (from ₹127 crore in Q1). There are signs of demand improvement, especially in the commercial vehicle segment. However, the second wave of infections in the Western countries could play spoilsport.  
• The stock is up 0.5% today. 

Larsen & Toubro

• Shares of L&T are seeing investor interest and are up nearly 15% in this month.
• The company has several won orders in the range of ₹1,000 crore to ₹2,500 crore. It has secured an order to execute a high-speed rail project in the Delhi-Ghaziabad-Meerut corridor. Further, Its power transmission and distribution business has secured overseas contracts from Nepal and Saudi Arabia.

Ashoka Buildcon

• Shares of Ashok Buildcon jumped up nearly 6% today as the company reported an over 500% rise in net profits to ₹70 crore, supported by 15.7% growth in revenues, higher other income and lower depreciation expenses.
• As of September 2020, its order book stands at ₹9,300 crore, up 24% YoY. 

Global markets

• Key Asian markets are trading weak today as the Japanese Nikkei 225 is flat (+0.1%), while China’s SSE Composite (-0.20%) and Hong Kong’s Hang Seng Index (-0.45%) are down.

Events today

• Consumer Price Index (CPI) and Index of Industrial Production (IIP) data to be released after market hours
• Earnings expected from Eicher Motors and Grasim

Fact of the day

The New York Stock Exchange was founded in 1817, although its origins date back to 1792, when a group of stockbrokers and merchants signed an agreement under a buttonwood tree on Wall Street.

Source: History.com

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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.