SGX Nifty Down 23 Points, DHFL Resolution Process, September Quarter Results, and Top Buzzing Stocks Today

Wed, 28 Oct Pre-Open | Monish Vora, TM Team

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Share markets in India ended on a strong note yesterday, lifted by gains in financials and FMCG stocks.

At the closing bell yesterday, the BSE Sensex stood higher by 377 points (up 0.9%).

The NSE Nifty closed higher by 122 points (up 1%).

Kotak Mahindra Bank and Nestle were among the top gainers.

The BSE Mid Cap index ended up by 1.7%. The BSE Small Cap index ended up by 0.6%.

On the sectoral front, gains were largely seen in the banking sector and finance sector.

IT stocks, on the other hand, witnessed selling pressure.

At 8 am today, the SGX Nifty was trading down by 23 points, or 0.2% lower at 11,850 levels. Indian share markets are headed for a negative opening today following the negative trend on SGX Nifty.

NEW: 5 Pandemic-Proof Smallcaps You Should Know About...

Gold prices were trading down by 0.3% at Rs 50,760 per 10 grams at the time of closing stock market hours yesterday.

Domestic gold prices rose as the US dollar softened, and rising Covid-19 cases made investors look away from riskier equities.

Note that gold prices are up about 30% so far this year in Indian markets. Most of these gains are seen as gold is seen as an inflation hedge amid unprecedented pandemic-driven stimulus across the world.

To know more about gold, visit our YouTube Playlist on gold investing.

Speaking of the stock markets, Senior Research Analyst at Equitymaster, Apurva Sheth, shares his view on ITC in his latest video for Fast Profits Daily.

In this video below, Apurva talks about what could be the right course of action on the company's stock using technical analysis in a market with polarized views.

So, what do the charts say about the stock of ITC?

Tune in here to find out more:

Top Stocks in Focus Today

NTPC will be among the top buzzing stocks today as the state-run power giant informed stock exchanges that its board of directors will consider a proposal for buyback of equity shares on 2 November.

Last week on Friday, the capital markets regulator had granted exemption to NTPC from certain buyback norms for the proposed merger of wholly-owned subsidiaries with the parent company.

Note that last week, it was reported that the Indian government is planning to ask some state-owned companies to repurchase shares to help the government shore up its finances amid the coronavirus pandemic.

Reportedly, Coal India, NTPC, NMDC, MOIL, and Engineers India are among the eight companies that might be asked to buy back shares this year.

Mahindra Finance share price will be in focus today as the company reported a 33.7% YoY increase in consolidated net profit at Rs 3.5 billion for the quarter ended September.

The company's total income increased by 4.6% QoQ and its standalone assets under management stood at Rs 817 billion for the quarter, registering a 12% growth from Rs 727 billion a year ago.

DHFL Resolution Process: Lenders Ask Bidders for a Revised Offer by 31 October

In news from the finance sector, lenders to debt-ridden Dewan Housing Finance Corp (DHFL) have asked the four bidders for the company to get back with a revised offer by 31 October as part of the ongoing resolution process.

The lenders' decision comes after the committee of creditors met on Monday.

Lenders said that they are looking at a much-improved bid, at least as much as 2X times the initial bid offer. The bids will have to come in by 31 October, after which the CoC (committee of creditors) will need to finalize the resolution plan and send it to RBI (Reserve Bank of India) by 16 November.

DHFL has received bids from Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy to either pick a stake in the company or buy out assets.

Oaktree has made an offer to take over the entire company for Rs 280 billion while Piramal has bid for the retail books for Rs 150 billion. Adani Group is keen on the construction finance and slum redevelopment area books and has offered around Rs 30 billion while SC Lowy wants to take over the construction finance books.

Last year in November, the RBI referred DHFL to the NCLT for insolvency proceedings. DHFL was the first finance company to be referred to NCLT by RBI using special powers under Section 227.

State Bank of India (SBI) is the lead banker with an exposure of over Rs 100 billion to DHFL. Reportedly, banks have an exposure of Rs 380 billion to DHFL.

We will keep you updated on all the developments from this space. Stay tuned.

Q2FY21 Results: Angel Broking PAT at Rs 746 Million, Kotak Mahindra Bank Profit Rises 27% YoY

Angel Broking reported highest-ever quarterly profit after tax at Rs 746 million in the September quarter (Q2FY21). It had posted profit of Rs 483 million in June quarter (Q1FY21).

The broking firm announced its maiden quarterly results after listing its shares earlier this month.

During the quarter, the company's total income grew 29% quarter-on-quarter (QoQ) at Rs 3.2 billion against Rs 2.5 billion in previous quarter.

The company said it witnessed strong net addition in client base which grew by 59% QoQ to 539,567 clients in Q2FY21 from 339,573 clients in Q1FY21.

Private sector lender, Kotak Mahindra Bank reported a 27% year-on-year (YoY) increase in net profit and a 16.8% YoY increase in net interest income for the quarter ended September, on the back of lower provisions and higher core income.

The bank's gross non-performing asset (NPA) ratio fell 0.6% QoQ, down 23 basis points. This improvement on asset quality was largely because of a Supreme Court interim order, which stopped banks from marking down loans to the NPA category after August 31.

Provisions for the quarter stood at Rs 3.7 billion, as compared to Rs 4.1 billion a year ago. The bank also saw its loan and deposit books remain flat as it continued to take a cautious approach towards new lending amid a weak economy.

In its analyst presentation, the bank said that it is opening up select segments for lending, such as home loans and advances to well-rated companies. However, it would continue to remain more cautious in the retail unsecured lending segment.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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