KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty End Lower For Second Day In A Row As RIL, ICICI Bank Drag
Indian indices ended lower for the second consecutive trading session, led by the declines in Reliance Industries Ltd. and ICICI Bank Ltd.
The S&P BSE Sensex fell 0.46 percent to end at 40,966.86 and the NSE Nifty 50 fell 0.52 percent to close at 12,055.80. The broader markets represented by the NSE Nifty 500 Index fell 0.43 percent.
The market breadth was tilted in favour of sellers. About 1,165 stocks declined and 618 shares advanced on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 2.5 percent fall. On the flipside, the NSE Nifty Financial Services Index was the top sectoral gainer, up 0.27 percent.
Stocks Reacting To Results Announcement
Teamlease Services (Q3, YoY)
- Stock fell as much as 5.6 percent to Rs 2,531.
- Revenue up 15.3 percent to Rs 13,51.4 crore.
- Net profit flat at Rs 25.5 crore versus Rs 25.3 crore.
- Ebitda up 12.2 percent to Rs 27.5 crore.
- Margin at 2 percent versus 2.1 percent.
Manappuram Finance (Q3, YoY)
- Stock fell as much as 3.4 percent to Rs 178.50.
- Net interest income up 29.8 percent to Rs 910.2 crore.
- Net profit up 62.8 percent to Rs 399.1 crore.
Mastek (Q3, QoQ)
- Stock fell as much as 7.7 percent to Rs 407.10.
- Revenue flat at Rs 243.7 crore.
- Net profit up 5.7 percent to Rs 26 crore.
- EBIT up 11.2 percent to 27.8 crore.
- EBIT margin at 11.4 percent versus 10.3 percent.
Fab Four Stocks Of The Day
Navin Fluorine
- Stock rose as much as 9.4 percent to Rs 1,212 after announcing December quarter results.
Key earnings highlights (Q3, YoY)
- Revenue rose 11.4 percent to Rs 260.5 crore
- Net profit rose 17.6 percent to Rs 45.4 crore
- Ebitda rose 26.2 percent to Rs 65.5 crore
- Margin stood at 25.1 percent versus 22.2 percent
Astral Poly
- Stock rose as much as 8.6 percent to Rs 1,247.45.
- Trading volume was five times its 20-day average, Bloomberg data showed.
Dish TV
- Stock rose as much as 7.9 percent, the most since Dec. 20, 2019, to Rs 14.90.
- The scrip traded at 173 times its estimated earnings per share for the coming year, according to Blomberg data.
Orient Electric
- Stock rose as much as 5.7 percent to Rs 228.
- The company is set to announce December quarter results today.
Large Trade Alert: Cholamandalam Investment And Finance
About 14.7 lakh shares of Cholamandalam Investment and Finance changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Stocks Moving On Heavy Volumes
CCL Products
- Stock rose as much as 6.2 percent to Rs 205.15.
- Trading volume was more than 15 times its 20-day average.
Navin Fluorine International
- Stock rose as much as 9.4 percent to Rs 1,212.
- Trading volume was more 11 times its 20-day average.
Torrent Pharmaceuticals
- Stock fell as much as 6.2 percent to Rs 1,900.60.
- Trading volume was more than seven times its 20-day average.
Vodafone Idea Drops The Most In Nearly Two Weeks
Shares of Vodafone Idea fell for the second consecutive trading session. The stock fell as much as 18.9 percent, the most since Jan. 17, to Rs 4.70.
Of the shares traded, 54 percent were at the ask price and 45 percent were at the bid, Bloomberg data showed.
Market Check: Sensex, Nifty Decline
Indian stocks declined after fluctuated between gains and losses in the morning trade.
The S&P BSE Sensex fell 0.37 percent to 41,004 and the NSE Nifty 50 fell 0.49 percent to 12,060. The broader markets represented by the NSE Nifty 500 Index fell 0.37 percent.
Lakshmi Machine Works Falls The Most In Three Months
Shares of Lakshmi Machine Works fell for the second consecutive trading session. The stock fell as much as 7.4 percent, the most since Oct. 31, 2019, to Rs 3,350.
The stock returned 3.7 percent so far this year and declined 35.2 percent in the past 123 months.
Central Bank Of India Falls 7% Ahead Of Q3 Results
Shares of Central Bank of India fell as much as 6.9 percent to Rs 18.65 ahead of December quarter results announcement.
Trading volume was more than four times its 20-day average, Bloomberg data showed. The stock had declined 39 percent in the past 12 months compared to a 15 percent gain in the Sensex.
Maruti Suzuki Falls After Q3 Results
Shares of Maruti Suzuki fell as much as 1.2 percent to Rs 7,065 after the company announced its December quarter results.
Key Earnings Highlights (Q3, YoY)
- Revenue up 5 percent to Rs 20,707 crore (Estimate: Rs 20,877 crore)
- Net profit up 5 percent to Rs 1,565 crore. (Estimate: Rs 1,587 crore)
- Ebitda up 9 percent to Rs 2103 crore (Estimate: Rs 2,339 crore)
- Margin at 10.2 percent vs 9.82 percent (Estimate: 11.2 percent)
Global Markets Update: U.S., European Stock Futures Climb
A rise in U.S. and European equity futures suggested a pause in the risk-asset sell-off as the global effort to curb the coronavirus intensified.
- The MSCI Asia Pacific Index fell 0.8 percent.
- Japan’s Topix Index was down 0.6 percent.
- South Korea’s Kospi Index fell 3.1 percent.
- S&P/ASX 200 fell 1.4 percent.
- S&P 500 futures rose 0.7 percent.
- FTSE China A50 futures fell 0.6 percent.
Get your daily fix of global markets here.
Source: Bloomberg
Astral Poly Technik Gains For Fourth Day; Shares Surge Nearly 9%
Shares of Astral Poly Technik rose for the fourth consecutive trading session. The stock rose as much as 8.6 percent to Rs 1,247.45.
Trading volume was five times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Bharti Airtel Worst Performer On Sensex
Shares of Bharti Airtel extended declines for the second consecutive trading session.
The stock fell as much as 3.3 percent, the most in nearly two months, to Rs 497.50 and was the worst performer on Sensex and second-worst performer on Nifty
Prior to Jan. 27, The scrip had risen for seven consecutive trading sessions. The telecom operator advanced 78 percent in the past 12 months compared to a 16 percent gain in the Sensex.
Gayatri Projects Falls For Eleventh Day In A Row
Shares of Gayatri Projects extended declines for the eleventh consecutive trading session. The stock hit 5 percent lower circuit at Rs 63.20.
The stock declined 28 percent in 11 trading sessions. The Relative Strength Index was at 21, indicating that the stock may be oversold, according to Bloomberg data. The scrip is on track for its longest losing streak in nearly two years.
Sectoral Indices Check: NSE Nifty Metal Index Worst Performer
Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 0.94 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 1.6 percet.
F&O Check: Nifty 12,200 Call Option Premium Falls 13%
Nifty’s 12,200 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract, which is set to expire on Jan. 30, fell 13.4 percent to Rs 28.05. About 8.28 lakh shares were added to the open interest which stood at over 63.43 lakh shares.
Large Trade Alert: Narayana Hrudayalaya
About 81.7 lakh shares of Narayana Hrudayalaya changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Market Check: Sensex, Nifty Fluctuate
Indian indices fluctuated between gains and losses after opening higher.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 41,167 and 12,118.50 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.
Stocks Reacting To Results Announcement
HDFC (Q3, YoY)
- Stock rose as much as 2.7 percent to Rs 2,459.70.
- Reported net interest income rose 9 percent to Rs 3,239 crore.
- Calculated net interest income rose 13.6 percent to Rs 2,957.8 crore.
- Net profit rose 3.96 times to Rs 8,372.5 crore (Estimate: Rs 5,855 crore).
- Gross NPAs at 1.36 percent of loan portfolio versus 1.33 percent. QoQ
- Non-performing loans of the individual portfolio stood at 0.75 percent versus 0.73 percent QoQ.
- NPAs in non-individual portfolio stood at 2.91 percent versus 2.87 percent QoQ.
InterGlobe Aviation (Q3, YoY)
- Stock rose as much as 3.03 percent to Rs 1,541.
- Revenue rose 25.5 percent to Rs 9,932 crore versus Rs 7,916 crore (Estimate: Rs 9,720 crore)
- Net profit rose 2.6 times to Rs 490 crore versus Rs 191 crore (Estimate: Rs 348 crore)
- Ebitdar rose 41.3 percent to Rs 1804 crore versus Rs 1277 crore (Estimate: Rs 1,700 crore)
- Ebitdar Margin at 18.2 percent versus 16.1 percent (Estimate: 17.5 percent)
Navin Fluorine International (Q3, YoY)
- Stock rose as much as 6.5 percent to Rs 1,179.95.
- Revenue rose 11.4 percent to Rs 260.5 crore
- Net profit rose 17.6 percent to Rs 45.4 crore
- Ebitda rose 26.2 percent to Rs 65.5 crore
- Margin stood at 25.1 percent versus 22.2 percent
Torrent Pharmaceuticals (Q3, YoY)
- Stock fell as much as 4.4 percent to Rs 1,938.10.
- Revenue fell 4.1 percent to Rs 1966 crore.
- Net profit rose 2 percent to Rs 251 crore.
- Ebitda fell 3.7 percent to Rs 540 crore versus Rs 561 crore.
- Margin stood at 27.5 percent versus 27.4 percent
JK Paper (Q3, YoY)
- Stock rose as much as 1.2 percent to Rs 137.80.
- Revenue fell 5.6 percent to Rs 820.7 crore.
- Net profit rose 15.9 percent to Rs 131.9 crore.
- Ebitda fell 6.1 percent to Rs 230.7 crore.
- Margin stood at 28.1 percent versus 28.3 percent.
United Spirits (Q3, YoY)
- Stock rose as much as 6.4 percent to Rs 612.30.
- Revenue rose 3 percent to Rs 2,587.6 crore.
- Net profit rose 15.1 percent to Rs 235.3 crore.
- Ebitda rose 19.2 percent to Rs 425.7 crore.
- Margin stood at 16.5 percent versus 14.2 percent.
V2 Retail (Q3, YoY)
- Stock rose as much as 3.9 percent to Rs 118.50.
- Revenue fell 9.2 percent to Rs 219 crore.
- Net profit fell 11.9 percent to Rs 20.8 crore.
- Ebitda rose 10.1 percent to Rs 33.7 crore.
- Margin stood at 15.4 percent versus 12.7 percent.
IIFL Finance (Q3, YoY)
- Stock fell as much as 1.6 percent to Rs 166.95.
- Net interest income rose 5.5 percent at Rs 515.5 crore.
- Net profit rose 32.2 percent at Rs 153.4 crore.
- Loan AUM in NBFC Business rose 11 percent at Rs 36,015 crore.
MRF Resumes Gain After One-Day Blip, Shares At 16-Month High
Shares of MRF resumed gains after declining during yesterday’s trade. The stock rose nearly a percent intraday to 70,999.95, the highest since September 2018.
Of the shares traded, 33 percent were at the ask price and 34 percent were at the bid, according to Bloomberg data. The stock returned 3.9 percent in the past five days and 7.5 percent in the past 30 days.
Dish TV Surges The Most In Over A Month
Shares of Dish TV India rose as much as 7.9 percent, the most since Dec. 20, 2019, to Rs 14.90.
During yesterday’s trade, about 90 lakh shares changed hands in a large trade, Bloomberg data showed.
The stock traded at 173 times its estimated earnings per share for the coming year, according to Blomberg data.
Gati Surges 9% After Large Trades
Shares of Gati rose as much as 8.9 percent, the most since Sept. 12, 2019, to Rs 75 on Bombay Stock Exchange, the highest level since June 6, 2019.
About 86 lakh share or 7.9 percent equities changed hands in two large trades, Bloomberg data showed. Buyers and sellers were not known immediately.
Trading volume was 800-times its 20-day average, Bloomberg data showed. The scrip returned 3.8 percent in the past five days and advanced 20 percent in the past 30 days.
Opening Bell: Sensex, Nifty Open Higher
Indian indices opened higher, resuming gains after a one-day blip.
The S&P BSE Sensex rose 0.18 percent to 41,232.63 and the NSE Nifty 50 rose 0.12 percent to 12,133.50. The broader markets represented by the NSE Nifty 500 Index rose 0.2 percent.
The market breadth was tilted in favour of buyers. About 910 stocks advanced and 464 shares declined on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 0.45 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.3 percent.
Your Complete F&O Trade Setup
Index Futures
- Nifty January futures closed at 12,125.7, premium of 6.7 points versus 23.4 points.
- Nifty futures open interest across series up 3 percent, adds 4.5 lakh shares in open interest.
- Nifty Bank January futures closed at 30,879, premium of 41.6 points versus 88.6 points.
- Nifty Bank futures open interest across series up 10 percent, adds 1.6 lakh shares in open interest.
- Rollovers –Nifty at 19 percent, Nifty Bank at 24 percent.
Options
- Nifty PCR at 1.10 versus 1.42 (across all series).
Nifty Monthly Expiry: Jan. 30
- Max open interest on call side at 12,200 (55.1 lakh shares).
- Max open interest on put side at 12,000 (39.9 lakh shares).
- Open interest addition seen at 12,200C (+30 lakh shares), 12,300C (+11 lakh shares).
- Open interest shedding seen at 12,200P (-10 lakh shares), 12,300P (-9.8 lakh shares).
Trading Tweaks: Sun Retail, Indian Card Clothing, Electrosteel Castings, Everest Kanto Cylinder
- Mitsu Chem Plast ex-date for bonus issue at 2:1.
- Indian Card Clothing, Walchandnagar Industries, Kanoria Chemicals & Industries to move into ASM Framework.
- Electrosteel Castings, Everest Kanto Cylinder, Prakash Industries, Manaksia Steels, Monnet Ispat & Energy to move out of short term ASM Framework.
- Oswal Agro Mills, InfoBeans Techno to move into short term ASM Framework
- Genomic Valley Biotech price band revised to 20 percent.
- Sun Retail price band revised to 10 percent.
- Vipul, Hindustan Fluorocarbons price band revised to 5 percent.
Money Market Update: Rupee Opens Higher
The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.1 percent to 71.37 against the greenback.
Pre-Market Check: Sensex, Nifty Set To Open Higher
Indian indices are set for a positive start.
The S&P BSE Sensex rose 0.4 percent to 41,324 during the pre-market trade and the NSE Nifty 50 rose 0.61 percent to 12,193.
How Indian ADRs Fared Overnight
Stocks To Watch: Adani Gas, Adani Green Energy, Maruti Suzuki, Prakash Industries
- Maruti Suzuki to increase prices up to 4.7 percent across select models due to the increase in input costs, with effect from Jan. 27.
- NTPC: Board gave in principle approval for the acquisition of entire stake of Government of India in NEEPCO and THDC.
- Adani Gas clarified that it has not been charged with Rs 400 crore penalty from Petroleum and Natural Gas Regulatory Board, and the company has responded to the afore-said board with all information to conclude the matter.
- Adani Green Energy’s arm received approval from Maharashtra Electricity Regulatory Commission for award of 700 megawatt Solar-Wind Hybrid Capacity Power Project, which was won via tendering. Project is expected to be commissioned by Q2FY2022 and fixed PPA tariff is set at Rs 3.24 per unit for a period of 25 years.
- Prakash Industries will participate in forthcoming auctions of coal blocks available under commercial mining policy and not proceed further in case of Bhaskarpara coal block as the same is available under captive mining policy. Third quarter steel sales rose 6.4 percent at 2.53 lakh tonne.
- HCL Infosystems will scale down the Enterprise and Consumer Distribution Business over the next few quarters, due to declining business.
- ITI: FPO subscribed 9 percent on day 2 of its offer. Retail book subscribed 50 percent .
- Music Broadcast: Board has recommended a bonus issue of 1 share for every 4 shares held.
- Karnataka Bank: Board recommended a bonus issue of 1 share for every 10 shares held and to issue rose to 15 crore equity issues as QIP issue.
- Cholamandalam Investment & Finance opens QIP issue with floor price set at Rs 322.59 per share , which is at a discount of 2 percent to the closing prices of Jan. 27.
- DHFL said that draft resolution plan by old management is no longer valid and it has withdrawn.
- Ambuja Cements: Life Insurance Corporation of India reduced stake from 6.2 percent to 4.1 percent in the company.
- InterGlobe Aviation: Board approved the appointment of company’s Chief Executive Officer Ronojoy Dutta as a whole-time director with effect from Jan. 27.
- Andhra Bank to consider raising capital via issue of preference shares aggregating to Rs 200 crore to Government of India, on Jan. 30.
Q3 Earnings Corner: Central Bank of India, HDFC, IndiGo, Infibeam, Manappuram Finance, Maruti Suzuki
Nifty Earnings To Watch
- Maruti Suzuki
Other Earnings To Watch
- Tata Coffee
- Teamlease Services
- Manappuram Finance
- Infibeam Avenues
- Alicon Castalloy
- Acrysil
- Mahindra & Mahindra Financial Services
- Central Bank of India
- Century Textiles & Industries
- CG Power and Industrial Solutions
- Thirumalai Chemicals
- Cummins India
- Spandana Sphoorty Financial
- Honda Siel Power Products
- IFB Industries
- JK Lakshmi Cement
- Inditrade Capital
- Kewal Kiran Clothing
- KRBL
- LKP Finance
- Ludlow Jute & Specialities
- Mastek
- Munjal Showa
- Orient Electric
- Ramco Systems
- Sagar Cements
- Sequent Scientific
- Shree Digvijay Cement
- Shriram Pistons & Rings
- Subros
- Swaraj Engines
- TTK Healthcare
- Tube Investments of India
- VIP Clothing
- WABCO India
- Wonderla Holidays
Earnings Reaction To Watch
HDFC (Q3, YoY)
- Reported net interest income rose 9 percent to Rs 3,239 crore.
- Calculated net interest income rose 13.6 percent to Rs 2,957.8 crore.
- Net profit rose 3.96 times to Rs 8,372.5 crore (Estimate: Rs 5,855 crore).
- Gross NPAs at 1.36 percent of loan portfolio versus 1.33 percent. QoQ
- Non-performing loans of the individual portfolio stood at 0.75 percent versus 0.73 percent QoQ.
- NPAs in non-individual portfolio stood at 2.91 percent versus 2.87 percent QoQ.
InterGlobe Aviation (Q3, YoY)
- Revenue rose 25.5 percent to Rs 9,932 crore versus Rs 7,916 crore (Estimate: Rs 9,720 crore)
- Net profit rose 2.6 times to Rs 490 crore versus Rs 191 crore (Estimate: Rs 348 crore)
- Ebitdar rose 41.3 percent to Rs 1804 crore versus Rs 1277 crore (Estimate: Rs 1,700 crore)
- Ebitdar Margin at 18.2 percent versus 16.1 percent (Estimate: 17.5 percent)
Navin Fluorine International (Q3, YoY)
- Revenue rose 11.4 percent to Rs 260.5 crore
- Net profit rose 17.6 percent to Rs 45.4 crore
- Ebitda rose 26.2 percent to Rs 65.5 crore
- Margin stood at 25.1 percent versus 22.2 percent
Torrent Pharmaceuticals (Q3, YoY)
- Revenue fell 4.1 percent to Rs 1966 crore.
- Net profit rose 2 percent to Rs 251 crore.
- Ebitda fell 3.7 percent to Rs 540 crore versus Rs 561 crore.
- Margin stood at 27.5 percent versus 27.4 percent
JK Paper (Q3, YoY)
- Revenue fell 5.6 percent to Rs 820.7 crore.
- Net profit rose 15.9 percent to Rs 131.9 crore.
- Ebitda fell 6.1 percent to Rs 230.7 crore.
- Margin stood at 28.1 percent versus 28.3 percent.
United Spirits (Q3, YoY)
- Revenue rose 3 percent to Rs 2,587.6 crore.
- Net profit rose 15.1 percent to Rs 235.3 crore.
- Ebitda rose 19.2 percent to Rs 425.7 crore.
- Margin stood at 16.5 percent versus 14.2 percent.
V2 Retail (Q3, YoY)
- Revenue fell 9.2 percent to Rs 219 crore.
- Net profit fell 11.9 percent to Rs 20.8 crore.
- Ebitda rose 10.1 percent to Rs 33.7 crore.
- Margin stood at 15.4 percent versus 12.7 percent.
IIFL Finance (Q3, YoY)
- Net Interest Income rose 5.5 percent at Rs 515.5 crore.
- Net profit rose 32.2 percent at Rs 153.4 crore.
- Loan AUM in NBFC Business rose 11 percent at Rs 36,015 crore.
Global Cues: U.S. Stocks Fall, Oil Extends Decline
- The S&P 500 Index fell the most in almost four months, the Dow Jones Industrial Average erased its 2020 gain and the Nasdaq-100 Index had the biggest drop since August.
- Oil extended its slide to lows not seen since October as China’s deadly coronavirus crippled the world’s second-largest economy and threatened worldwide energy demand.
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SGX Nifty Suggests Stock Losses; Asian Stocks Extend Declines
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.26 percent to 12,085 as of 7:50 a.m.
Asian stocks retreated again in early trade as concern over the economic and human impact of China’s deadly coronavirus rattled global markets.
Japanese shares slid, with deeper losses in South Korea and Australia as those markets reopened after holidays. Chinese and Hong Kong. U.S. futures saw modest gains.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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