KEY HIGHLIGHTS
Closing Bell: Nifty Registers Worst F&O Series In Five Months
The Nifty’s futures and options series posted a loss for the second straight month in January.
In the January series, the 50-stock index fell 0.8 percent, registering its worst F&O series in five months, according to data compiled by BloombergQuint.
Today, Indian indices resumed declines after a one-day breather. The S&P BSE Sensex fell 0.69 percent to close at 40,913 and the NSE Nifty 50 fell 0.77 percent to end at 12,035.80. The broader markets represented by the NSE Nifty 500 Index fell 0.9 percent.
The market breadth was tilted in favour of sellers. About 1,238 stocks declined and 560 shares advanced on National Stock Exchange.
All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Pharma Index’s 2.1 percent fall.
Indian Oil Falls After Q3 Results
Shares of Indian Oil Corporation fell as much as 1.7 percent to Rs 116.20 after the company announced its quarterly results for the three months ended December.
Key Earnings Highlights (Q3, QoQ)
- Net profit up 315.15 percent to Rs 2,339 crore. (Estimate: Rs 2,488 crore)
- Revenue up 11.6 percent to 1,24,615 crore. (Estimate: Rs 1,24,459 crore)
- Ebitda up 86.2 percent to Rs 6,650 crore. (Estimate: Rs 6,468 crore)
- Margin at 5.34 percent versus 3.20 percent. (Estimate: 5.2 percent)
- April-December GRM at $3.43 a barrel versus $5.83 per barrel, according to Bloomberg report. (Estimate: $3.6 per barrel)
Stocks Moving On Heavy Volumes
Solar Industries
- Stock rose as much as 2.1 percent to Rs 1,300.
- Trading volume was more than 18 times its 20-day average.
Tata Investment Corp
- Stock rose 7.7 percent to Rs 944.
- Trading volume was more than 10 times its 20-day average.
Chalet Hotels
- Stock fell as much as 3.6 percent to Rs 320.
- Trading volume was almost 11 times its 20-day average.
IDFC
- Stock fell as much as 9.1 percent to Rs 33.55.
- Trading volume was more than five times its 20-day average.
Fab Four Stocks Of The Day
Vaibhav Global
- Stock rose as much as 10.6 percent to Rs 1,100.
- Revenue up 10.3 percent to Rs 563.3 crore.
- Net profit up 25 percent to Rs 65.6 crore.
- Ebitda up 20.3 percent to Rs 88.4 crore.
- Margin at 15.7 percent versus 14.4 percent.
- Margin expanded by 130 basis points due lower manufacturing expenses.
- Strong Growth seen in U.K. and U.S. markets.
Strides Pharma
- Stock rose as much as 8.5 percent to Rs 484.90.
- Net profit up 3.6 times to Rs 101.7 crore.
- Revenue up 28 percent to Rs 735.3 crore.
- Ebitda up 1.85 times to Rs 185.1 crore.
- Margin at 25.2 percent versus 11.3 percent.
Escorts
- Stock rose as much as 8.5 percent to Rs 811.50.
- Fresh longs seen with high open interests of 61 percent.
- Trading volume was eight times its 20-day average.
CCL Products
- Stock rose as much as 8.1 percent to Rs 224.80.
- Shares advanced 14 percent in the last three sessions.
- Norges Bank acquired 20.3 lakh shares or 1.53 percent equity at Rs 199 per share.
- Smallcap World Fund sold 65.12 lakh shares or 4.9 percent at Rs 199.22 per share.
Dabur Swings After Q3 Profits
Shares of Dabur fluctuated between gains and losses to trade little changed at Rs 491.70 after the company announced December quarter results.
Key Earnings Highlights (Q3, YoY)
- Net profit up 8.7 percent to Rs 399 crore.
- Revenue up 7 percent to Rs 2,353 crore.
- Ebitda up 10.4 percent to Rs 492.5 crore.
- Margin at 20.9 percent versus 20.3 percent.
Colgate Falls After Q3 Results
Shares of Colgate-Pamolive India fell as much as 4.7 percent to Rs 1,415 after the company announced December quarter results.
Key Earnings Highlights (Q3, YoY)
- Revenue up 4.4 percent to Rs 1,147 crore (Estimate: Rs 1,150 crore)
- Net profit up 3.6 percent to Rs 199 crore (Estimate: Rs 207 crore)
- Ebitda up 0.6 percent to Rs 316 crore (Estimate: Rs 316 crore)
- Margin at 27.6 percent versus 28.6 percent (Estimate: 27.5 percent)
- Volume growth at 2.3 percent.
Unilever Starts Strategic Review Of Global Tea Business
- The Anglo-French conglomerate has started strategic revenue of its global tea business.
- Unilever Plc continues to evaluate the portfolio, the London-headquartered company said in its earnings announcement on Thursday.
Also Read: Unilever Reviews Future of Lipton Tea
Bajaj Auto Swings After Q3 Results
Shares of the automaker fluctuated between gains and losses as the company reported its December quarter earnings.
Q3 Results (YoY)
- Revenue up 2.7 percent to Rs 7,639.7 crore.
- Net profit rose 14.5 percent to Rs 1,261.6 crore.
- Ebitda rose 12.8 percent to Rs 1,367.3 crore.
- Operating margins at 17.9 percent versus 16.3 percent.
The stock traded at 18 times its estimated earnings per share for the coming year, Bloomberg data showed.
Market Check: Sensex Falls Over 300 Points; Nifty Near 12,000
Indian stocks extended morning declines to trade at day’s low.
The S&P BSE Sensex fell 0.75 percent to 40,890 and the NSE Nifty 50 fell 0.78 percent to 12,033. The broader markets represented by the NSE Nifty 500 Index fell 0.81 percent.
Sectoral Check: NSE Nifty Pharma Index Worst Performer
All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Pharma Index’s 1.5 percent fall.
Aurobindo Pharma Drops 8% On Regulatory Concerns
Shares of Aurobindo Pharma fell as much as 8.2 percent, the most since Nov. 14, 2019, to Rs 465.85.
The pharmaceutical company received a has received a letter from the U.S. FDA classifying the inspection of Unit VII, an oral solids formulation manufacturing facility of the company at the aforesaid facility as Official Action Indicated, according to its statement to the exchanges.
“The company believes that this OAI classification will not have any material impact on the existing revenues or the supplies to our U.S. business at this juncture and will work closely with the regulator to comprehensively address the issues,” the statement added.
F&O Check: Nifty 12,100 Call Option Premium Slumps 84%
Nifty’s 12,100 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract, which is set to expire today, fell 83.35 percent to Rs 7.80. About 54.54 lakh shares were added to the open interest which stood at over 71.97 lakh shares.
Strides Pharma Gains After Q3 Results
Shares of Strides Pharma Science rose as much as 6.7 percent to Rs 477 after announcing December quarter results.
Key Earnings Highlights (Q3, YoY)
- Net Profit up 3.6 times to Rs 101.7 crore.
- Revenue up 28 percent to Rs 735.3 crore.
- Ebitda up 1.85 times to Rs 185.1 crore.
- Margin at 25.2 percent versus 11.3 percent.
Market Check: Sensex, Nifty Decline
Indian indices declined after fluctuating between gains and losses in the opening trade.
The S&P BSE Sensex fell 0.38 percent to 41,042 and the NSE Nifty 50 fell 0.37 percent to 12,085.
Tata Motors’ JLR CEO Ralf Speth To Retire In September
The Chief Executive Officer of Tata Motors-owned Jaguar Land Rover Ralf Speth is set to retire in September, the automaker said.
Tata Motors says:
- Search committee to identify Ralf Speth’s successor.
- Speth to become JLR non-executive chairman
Source: Bloomberg
Stocks Reacting To Results Announcement
Bajaj Finserv (Q3, YoY)
- Stock fell as much as 1.3 percent to Rs 9,768.
- Revenue rose 31 percent to Rs 14,561 crore.
- Net income rose 32 percent to Rs 1,126 crore.
- Bajaj Finance Net Income rose 52 percent to Rs 1,614 crore.
- General Insurance Net Income fell 15 percent to Rs 191 crore.
- Life Insurance Net Income rose 28 percent to Rs 143 crore.
Tata Power (Q3, YoY)
- Stock fell as much as 3.1 percent to Rs 59.
- Revenue fell 11.4 percent to Rs 7,071 crore. (Estimate Rs 7638 crore)
- Net profit rose 26.1 percent to Rs 178.9 crore. (Estimate Rs 278.8 crore)
- Ebitda fell 3.9 percent to Rs 1,804.9 crore. (Estimate Rs 1987.7 crore)
- Margin stood at 25.5 percent versus 23.5 percent. (Estimate 26 percent)
Pidilite Industries (Q3, YoY)
- Stock rose as much as 3.2 percent to Rs 1,545.
- Revenue rose 4.3 percent to Rs 1,926.6 crore. (Estimate Rs 1920 crore)
- Net profit rose 55.7 percent to Rs 341.8 crore. (Estimate Rs 300 crore
- Ebitda rose 35.8 percent to Rs 463.2 crore. (Estimate Rs 414 crore)
- Margin stood at 24 percent versus 18.5 percent. (Estimate 21.6 percent)
CG Consumer Electricals (Q3, YoY)
- Stock rose as much as 3.4 percent to Rs 266.95.
- Revenue rose 4 percent to Rs 1,071.3 crore. (Estimate Rs 1111.7 crore)
- Net profit rose 2 times at Rs 161 crore. (Estimate Rs 101 crore)
- Ebitda rose 8.5 percent to Rs 136.8 crore. (Estimate Rs 136.6 crore)
- Margin stood at 12.8 percent versus 12.2 percent. (Estimate 12.3 percent)
Quess Corp (Q3, YoY)
- Stock swung from a gain of as much as 2.9 percent to fall as much as 2.7 percent.
- Revenue rose 35.8 percent to Rs 2,950 crore.
- Net profit rose 15.2 percent to Rs 74.9 crore.
- Ebitda rose 51.5 percent to Rs 179.4 crore.
- Margin stood at 6.1 percent versus 5.5 percent.
KPIT Technologies (Q3, QoQ)
- Stock rose as much as 4.6 percent to Rs 103.40.
- Revenue rose 1.1 percent to Rs 550 crore.
- Net profit rose 19.5 percent to Rs 42.9 crore.
- EBIT rose 14.1 percent to Rs 45.3 crore.
- Margin stood at 8.2 percent versus 7.3 percent.
Coffee Day Enterprises (Q2, YoY)
- Stock rose as much as 4.9 percent to Rs 32.30.
- Revenue fell 13.9 percent to Rs 843.2 crore.
- Net loss at Rs 154.1 crore versus Net Profit at Rs 21.2 crore.
- Ebitda fell 66.4 percent to Rs 49.5 crore.
- Margin stood at 5.9 percent versus 15 percent.
Escorts (Q3, YoY)
- Stock rose as much as 6.5 percent to Rs 796.90.
- Revenue down 1.3 percent to Rs 1,650.2 crore.
- Net profit up 11 percent to Rs 154.9 crore.
- Ebitda up 6 percent at Rs 213.1 crore.
- Margin at 12.9 percent versus 12 percent.
- Margin expansion saw due to change in product mix and savings in employee costs and other expenses.
Greenlam Industries Surges The Most In Over Two Months
Shares Greenlam Industries extended gains for the second consecutive trading session. The stock rose as much as 9 percent to Rs 1,037.70.
The board of the company’s unit—Greenlam South—approved setting up of the manufacturing facility at Nellore in Andhra Pradesh for manufacturing of laminates and allied products with an investment outlay of Rs 175 crore.
The proposed capacity addition of 15 lakh laminate sheets per annum will be there, from the current 1.56 crore laminate sheets per annum. The company also said that it has been provisionally allotted a 65-acre land by Andhra Pradesh Industrial Infra Corporation.
Trading volume was almost 350 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Meghmani Organics Halts Two-Day Losing Streak
Shares of Meghmani Organics halted their two-day losing streak. The stock rose as much as 4.3 percent to Rs 62.55.
The pigments and agrochemicals manufacturer plans to restructure its business by the demerger of its agro-chemical and pigment business into a wholly-owned arm Meghmani Organochem, which will be listed on the exchanges through mirror shareholding structure.
The company also said that it will merge the remaining business of the company with Meghmani Finechem having chloro-alkali and its derivatives business, with the shareholders being issued 94 shares of Meghmani Finechem against 1,000 shares of the company.
The stock returned 5.9 percent so far this year and 13.1 percent in the past 12 months, according to Bloomberg data.
Trident Drops The Most In Over A Month
Shares of Trident fell as much as 12.9 percent, the most since Dec. 17, 2019, to Rs 6.10.
That came after the company’s net profit fell 67 percent on a yearly basis to Rs 37.33 crore during December quarter. Its revenue fell 12 percent year-on-year to Rs 1,140 crore.
Trading volume was more the seven times its 20-day average, Bloomberg data showed.
Opening Bell: Sensex, Nifty Swing In Open
Indian indices opened fluctuated between gains and losses in the opening trade on F&O expiry day.
The S&P BSE Sensex fell 0.3 percent to 41,063 and the NSE Nifty 50 fell 0.31 percent to 12,091. The broader markets represented by the NSE Nifty 500 Index fell 0.25 percent.
The market breadth was tilted in favour of buyers. About 743 stocks advanced and 714 shares declined on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Medina Index’s 0.75 percent fall. On the flipside, the NSE Nifty Auto Index was the top sectoral gainer, up 0.12 percent.
Your Complete F&O Trade Setup
Futures
- Nifty January futures closed at 12,121.5, discount 7.9 points versus premium of 12.2 points.
- Nifty futures OI across series down 2 percent, sheds 3.5 lakh shares in OI
- Nifty Bank January futures closed at 30,905.5, premium of 28 points versus 10.2 points.
- Nifty Bank futures OI across series up 1 percent, adds 26,000 shares in OI
- Rollovers: Nifty at 45 percent, Nifty Bank at 40 percent.
Options
- Nifty PCR at 1.13 versus 0.99 (across all series)
Nifty Monthly Expiry: Jan 30
- Max OI on call side at 12,200 (50.7 lakh shares)
- Max OI on put side at 12,000 (34.8 lakh shares)
- OI addition seen at 12,100P (+7.7 lakh shares), 12,150P (+7.6 lakh shares), 12,150C (+5.7 lakh shares)
- OI shedding seen at 12,100C (-17.6 lakh shares), 12,500C (-10 lakh shares)
BQ Heads-Up: Who's Meeting Whom
- Mahindra Lifespace Developers to meet Kotak MF on Jan. 31
Trading Tweaks: Dynacons Systems & Solutions, Palred Technologies, Paisalo Digital, Reliance Home Finance
- Palred Technologies to move into ASM Framework.
- Paisalo Digital, Reliance Home Finance to move into short term ASM Framework.
- Dynacons Systems & Solutions, PG Electroplast to move out of short term ASM Framework.
Money Market Update: Rupee Opens Lower
The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.22 percent to 71.41 against the greenback.
Pre-Market Check: Sensex, Nifty Set Positive Start
Indian indices are set to open higher.
The S&P BSE Sensex rose 0.26 percent to 41,306.37 during the pre-market trade and the NSE Nifty 50 rose 0.35 percent to 12,169.20.
How Indian ADRs Fared Overnight
Q3 Results: Bajaj Auto, Bharti Infratel, Dabur, IndiGo, IOC, Tata Motors
Nifty Earnings To Watch
- Bajaj Auto
- Bharti Infratel
- Indian Oil Corporation
- Tata Motors
Other Earnings To Watch
- Colgate Palmolive
- JK Tyre & Industries
- Marico
- Dabur
- Blue Star
- Bharat Electronics
- Amber Enterprises
- Arvind SmartSpaces
- Equitas Holdings
- Force Motors
- Laurus Labs
- Shriram City Union Finance
- LIC Housing Finance
- Asahi Songwon Colors
- Astec LifeSciences
- Bajaj Holdings & Inv Estimatement
- Balaji Amines
- Bharat Bijlee
- Carborundum Universal
- Dalmia Bharat Sugar and Industries
- Gujarat Ambuja Exports
- Gujarat State Fertilizers & Chemicals
- Heritage Foods
- Jagran Prakashan
- Kakatiya Cement Sugar & Industries
- Kirloskar Industries
- MOIL
- MCX
- Nath Bio-Genes (India)
- NOCIL
- Orient Green Power Company
- Parag Mi lakh Foods
- Persistent Systems
- PPAP Automotive
- Raunaq EPC International
- Thomas Cook
- Vimta Labs
Earnings Reaction To Watch
Bajaj Finserv (Q3, YoY)
- Revenue rose 31 percent to Rs 14,561 crore.
- Net income rose 32 percent to Rs 1,126 crore.
- Bajaj Finance Net Income rose 52 percent to Rs 1,614 crore.
- General Insurance Net Income fell 15 percent to Rs 191 crore.
- Life Insurance Net Income rose 28 percent to Rs 143 crore.
Tata Power (Q3, YoY)
- Revenue fell 11.4 percent to Rs 7,071 crore. (Estimate Rs 7638 crore)
- Net profit rose 26.1 percent to Rs 178.9 crore. (Estimate Rs 278.8 crore)
- Ebitda fell 3.9 percent to Rs 1,804.9 crore. (Estimate Rs 1987.7 crore)
- Margin stood at 25.5 percent versus 23.5 percent. (Estimate 26 percent)
Pidilite Industries (Q3, YoY)
- Revenue rose 4.3 percent to Rs 1,926.6 crore. (Estimate Rs 1920 crore)
- Net profit rose 55.7 percent to Rs 341.8 crore. (Estimate Rs 300 crore
- Ebitda rose 35.8 percent to Rs 463.2 crore. (Estimate Rs 414 crore)
- Margin stood at 24 percent versus 18.5 percent. (Estimate 21.6 percent)
CG Consumer Electricals (Q3, YoY)
- Revenue rose 4 percent to Rs 1,071.3 crore. (Estimate Rs 1111.7 crore)
- Net profit rose 2 times at Rs 161 crore. (Estimate Rs 101 crore)
- Ebitda rose 8.5 percent to Rs 136.8 crore. (Estimate Rs 136.6 crore)
- Margin stood at 12.8 percent versus 12.2 percent. (Estimate 12.3 percent)
Quess Corp (Q3, YoY)
- Revenue rose 35.8 percent to Rs 2,950 crore.
- Net profit rose 15.2 percent to Rs 74.9 crore.
- Ebitda rose 51.5 percent to Rs 179.4 crore.
- Margin stood at 6.1 percent versus 5.5 percent.
KPIT Technologies (Q3, QoQ)
- Revenue rose 1.1 percent to Rs 550 crore.
- Net profit rose 19.5 percent to Rs 42.9 crore.
- EBIT rose 14.1 percent to Rs 45.3 crore.
- Margin stood at 8.2 percent versus 7.3 percent.
Coffee Day Enterprises (Q2, YoY)
- Revenue fell 13.9 percent to Rs 843.2 crore.
- Net loss at Rs 154.1 crore versus Net Profit at Rs 21.2 crore.
- Ebitda fell 66.4 percent to Rs 49.5 crore.
- Margin stood at 5.9 percent versus 15 percent.
Escorts (Q3, YoY)
- Revenue down 1.3 percent to Rs 1,650.2 crore.
- Net profit up 11 percent to Rs 154.9 crore.
- Ebitda up 6 percent at Rs 213.1 crore.
- Margin at 12.9 percent versus 12 percent.
- Margin expansion saw due to change in product mix and savings in employee costs and other expenses.
Stocks To Watch: HAL, HDFC Bank, IndiGo, Meghamani Organics
- InterGlobe Aviation: A majority of the company's shareholders voted against a proposal to amend the articles of association of the company that would’ve allowed the promoters to buy or sell stake in India’s largest airline. 51.44 percent of the participating shareholders voted against the special resolution at today’s extraordinary general meeting, according to a stock exchange filing by the parent company of IndiGo airlines. The remaining 48.6 percent were in favour. A special resolution requires support from at least 75 percent of the votes cast to go through.
- HDFC Bank: Reserve Bank of India imposed Rs 1 crore penalty on the Bank for due diligence failure in case of 39 current accounts opened for bidding in Initial Public Offering.
- Hindustan Aeronautics: Government to sell rose to 15 percent stake in the company via offer for sale, according to a statement published by the department of investment and public asset management, according to a Bloomberg report.
- Meghmani Organics will restructure its business by the demerger of its agro-chemical and pigment business into a wholly-owned arm Meghmani Organochem, which will be listed on the exchanges through mirror shareholding structure. The company also said that it will merge the remaining business of the company with Meghmani Finechem having chloro-alkali and its derivatives business, with the shareholders being issued 94 shares of Meghmani Finechem against 1,000 shares of the company.
- MOIL received environmental clearance for enhancement of production capacity from 90,000 TPA to 203,200 TPA for its manganese ore mine at Maharashtra.
- Greenlam Industries’ arm Greenlam South’s board approved setting up of the manufacturing facility at Nellore in Andhra Pradesh for manufacturing of laminates and allied products with an investment outlay of Rs 175 crore. The proposed capacity addition of 15 lakh laminate sheets per annum will be there, from the current 1.56 crore laminate sheets per annum. The company also said that it has been provisionally allotted a 65-acre land by Andhra Pradesh Industrial Infra Corporation.
- Pidilite Industries will acquire Nitin Enterprises for Rs 18.5 crore, as a part of a restructuring exercise.
- Videocon Insolvency: NCLT directed Goods and Services Tax Department to not take any coercive steps against Videocon Group Entities.
- SEBI disposed of adjudicating proceedings against Abhijit Rajan, former chairman of Gammon Infrastructure Projects, in an alleged insider trading.
- ICICI Lombard General Insurance: IRDAI imposed a penalty of Rs 1 crore on the company with respect to onsite inspection of the company which was carried out in August 2015.
- JSW Energy allotted Rs 300 crore worth of non-convertible debentures.
- Piramal Enterprises: Board approved allotment of 2.64 crore shares at Rs 1,300 per share aggregating to Rs 3,432 crore.
- JSW Steel’s Netherlands arm has completed the sale of its 39 percent stake in Geo Steel to its joint venture Partner Georgian Steel Group Holdings. Post the completion of the sale, the company holds 10 percent stake in Geo Steel.
- Himadri Speciality Chemical said that commercial operations of the proposed expansion of 60,000 MTPA plant for manufacturing carbon black at West Bengal have commenced. The overall capacity of carbon black has increased to 180,000 MTPA.
- BL Kashyap received the letter of intent for civil construction in Noida for Rs 487.9 crore from Bhutani Infra.
- ITI will consider issue price for its FPO issue on Feb. 1.
Global Cues: Oil Declines On Oversupply Concerns
SGX Nifty Suggests Stock Losses; Asian Stocks Slide
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.17 percent to 12,112 as of 8:25 a.m.
Asian stocks slumped to a seven-week low and sovereign bonds rallied amid mounting evidence that the coronavirus epidemic is disrupting the world’s second-largest economy.
Japanese shares slid more than 1 percent, and Korea, Hong Kong and Australia saw losses. Taiwan tumbled over 4 percent as that market came back from a holiday. U.S. futures dropped.
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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