KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Halt Two-Day Losing Streak Ahead Of F&O Expiry
Indian indices halted their two-day losing streak ahead of F&O expiry, led by the gains in HDFC Bank Ltd. and ITC Ltd.
The S&P BSE Sensex rose 0.57 percent to 41,198.66 and the NSE Nifty 50 rose 0.6 percent to 12,129.50. The broader markets represented by the NSE Nifty 500 Index rose 0.53 percent.
The market breadth was tilted in favour of buyers. About 965 stocks advanced and 808 shares declined on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the gains in NSE Nifty FMCG Index’s 1.3 percent gain. On the flipside, the NSE Nifty Metal Index was the only sectoral loser, down 0.09 percent.
Fab Four Stocks Of The Day
Akzo Nobel
- Stock rose as much as 2.6 percent to Rs 2,098.10.
- Trading volume was almost 19 times its 20-day average.
CCL Products
- Stock rose as much as 8.7 percent to Rs 215.
- Trading volume was more almost 40 times its 20-day average.
Affle India
- Stock rose as much as 8.2 percent to Rs 1,735.
- Trading volume was more nine times its 20-day average.
Solar Industries
- Stock rose as much as 4.6 percent to Rs 1,280.
- Trading volume was more than eight times its 20-day average.
Fab Four Stocks Of The Day
Amber Enterprises
- Stock rose as much as 7.9 percent to hit an all-time high at Rs 1,585.
- Share rose 19 percent in the last seven trading sessions.
Narayana Hrudayalaya
- Stock rose as much as 8.1 percent to Rs 389.
- DSP MF and SBI MF acquired 82 lakh shares or 4 percent Stake at Rs 340 each
- CDC Group were the sellers
Ircon International
- Stock rose as much as 8.7 percent to hit an all-time high at Rs 495.
- The company plans to consider share split on Feb. 11
- The scrip was the top performer on the NSE Nifty SmallCap Index.
Mahindra & Mahindra Financial Services
- Stock rose as much as 8.1 percent to Rs 379.50.
- Calculated Net Interest Income rose 9.8 percent to Rs 1,580.7 crore
- Net profit rose 18.2 percent to Rs 471.6 crore
- AUM rose 16 percent to Rs 75,884 crore
- Value of Assets Financed fell 2 percent to Rs 1,3218.2 crore
- Impairment Costs rose 72 percent to Rs 420.2 crore
Stocks Reacting To Results Announcement
Birla Corp (Q3, YoY)
- Stock rose as much as 5.3 percent to Rs 770
- Revenue up 10.2 percent to Rs 1,715.1 crore.
- Net profit up three times to Rs 81.5 crore.
- Ebitda up 42.3 percent to Rs 294.7 crore.
- Margin at 17.2 percent versus 13.3 percent.
Escorts (Q3, YoY)
- Stock rose as much as 3.2 percent to Rs 751.20.
- Revenue down 1.3 percent to Rs 1650.2 crore.
- Net profit up 11 percent to Rs 154.9 crore.
- Ebitda up 6 percent to Rs 213.1 crore.
- Margin at 12.9 percent versus 12 percent.
Jubilant FoodWorks (Q3, YoY)
- Stock fell as much as 2.1 percent to Rs 1,718.20.
- Revenue up 14 percent to Rs 1,060 crore (Estimate: Rs 1,046 crore)
- Profit up 7.8% at Rs 104 crore (Estimate: Rs 115 crore)
- Ebitda up 37 percent to Rs 255 crore (Estimate: Rs 233 crore)
- Margin at 24.1 percent versus 18.3 percent (Estimate: 22.3 percent)
NIIT Tech (Q3, QoQ)
- Stock fell as much as 3.9 percent to Rs 2,042.55.
- Net profit up 2.5 percent to Rs 123 crore.
- Revenue up 3.4 percent to Rs 1,073 crore.
- EBIT down 2.9 percent to Rs 149.6 crore.
- EBIT Margin at 13.9 percent versus 14.8 percent.
Godrej Consumer (Q3, YoY)
- Stock rose as much as 2.4 percent to Rs 754.
- Net sales up 2 percent to Rs 2,778 crore (Estimate: Rs 2,790 crore)
- Net profit up 5.2 percent to Rs 445 crore (Estimate: Rs 450 crore)
- Ebitda up 3.4 percent to Rs 631 crore (Estimate: Rs 654 crore)
- Margin at 22.7 percent to versus 22.4 percent (Estimate: 23.4 percent)
- Domestic volumes at 7 percent (BQ Estimate: 6-6.5 percent)
Large Trade Alert: CCL Products
About 34.4 lakh shares of CCL Products India changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Bajaj Finance Q3 Profit Beats Estimates
Bajaj Finance Q3 Profit Beats Estimates
Shares of Bajaj Finance rose 1.02 percent to 4,253 after announcing December quarter results. The stock had risen as much as 1.9 percent earlier.
Key Earnings Highlights (Q3, YoY)
- Net interest income up 42 percent to Rs 4,537 crore (Estimate: Rs 3,944 crore)
- Net profit up 52 percent to Rs 1,614 crore (Estimate: Rs 1,482 crore)
- Gross NPA at 1.61 percent
- Net NPA at 0.7 percent
RITES Trades Near Record High
Shares of RITES rose as much as 3.9 percent to Rs 327.90.
Trading volume was more than two times its 20-day average, Bloomberg data showed. The stock returned 14.1 percent so far this year and advanced 81.5 percent in the past 12 months.
Affle India Gains For Fifth Day, Shares Surge 8%
Shares of Affle India extended gains for the fifth consecutive trading session. The stock rose as much as 8.2 percent, the most in over a month, to Rs 1,735.
Trading volume was more than seven times its 20-day average, Bloomberg data showed. The scrip advanced 130 percent since its stock market debut.
Market Check: Sensex Gains Over 300 Points; Nifty Above 12,150
Indian indices halted their two-day losing streak ahead of F&O expiry, led by the gains in HDFC Bank Ltd. and ITC Ltd.
The S&P BSE Sensex rose 0.57 percent to 41,198.66 and the NSE Nifty 50 rose 0.6 percent to 12,129.50. The broader markets represented by the NSE Nifty 500 Index rose 0.53 percent.
The market breadth was tilted in favour of buyers. About 965 stocks advanced and 808 shares declined on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the gains in NSE Nifty FMG Index’s 1.3 percent gain. On the flipside, the NSE Nifty Metal Index was the only sectoral loser, down 0.09 percent.
Sectoral Check: NSE Nifty Metal Index Best Performer
All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 1.7 pecent gain.
Tata Motors Gains The Most In Nearly Three Weeks
Shares of Tata Motors rose as much as 5.3 percent, the most since Jan. 9, to Rs 185.45.
Brokerage and research firm Edelweiss Capital upgraded its stock rating to ‘Buy’ from ‘Hold’ with a price target at Rs 245, implying a potential upside of 35 percent from the last regular trade.
The price target ranges from Rs 100 to Rs 465 by the analysts tracked by Bloomberg.
F&O Check: Nifty 12,200 Call Option Premium Jumps 81%
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, rose 80.9 percent to Rs 26.05. About 1.1 lakh shares were removed from the open interest which stood at over 55.08 lakh shares.
Stocks Reacting To Results Announcement
Tata Coffee (Q3, YoY)
- Stock rose as much as 8.5 percent to Rs 107.80.
- Revenue rose 7.7 percent to Rs 501.4 crore.
- Net profit rose 2.2 times to Rs 24.9 crore.
- Ebitda rose 54.2 percent at Rs 85.1 crore.
- Margin stood at 17 percent versus 11.9 percent.
Mahindra & Mahindra Financial Services (Q3, YoY)
- Stock rose as much as 6.2 percent to Rs 373.
- Calculated Net Interest Income rose 9.8 percent to Rs 1,580.7 crore
- Net profit rose 18.2 percent to Rs 471.6 crore
- AUM rose 16 percent to Rs 75,884 crore
- Value of Assets Financed fell 2 percent to Rs 1,3218.2 crore
- Impairment Costs rose 72 percent to Rs 420.2 crore
Wonderla Holidays (Q3, YoY)
- Stock rose as much as 1.5 percent to Rs 254.90.
- Revenue fell 8 percent to Rs 70 crore.
- Net profit rose 44.8 percent to Rs 21 crore.
- Ebitda fell 16.1 percent to Rs 25 crore.
- Margin stood at 35.7 percent versus 39.2 percent.
JK Lakshmi Cement (Q3, YoY)
- Stock rose as much as 3.9 percent to Rs 388.
- Revenue rose 7.5 percent to Rs 1,005 crore.
- Net profit rose 3.3 times to Rs 49.2 crore.
- Ebitda rose 54.6 percent to Rs 152 crore.
- Margin stood at 15.1 percent versus 10.5 percent.
Tube Investments of India (Q3, YoY)
- Stock fell as much as 4.9 percent to Rs 487.55.
- Revenue fell 25.4 percent to Rs 1087.4 crore.
- Net profit rose 31.8 percent to Rs 82 crore.
- Ebitda fell 10 percent to Rs 132 crore.
- Margin stood at 12.1 percent versus 10.1 percent.
Spandana Sphoorty Financial (Q3, YoY)
- Stock rose as much as 3.3 percent to Rs 1,130.
- Net interest income rose 43 percent to Rs 233 crore.
- Revenue rose 20.2 percent to Rs 350 crore.
- Net profit rose 39.4 percent to Rs 129.5 crore.
- AUM rose 40 percent to Rs 5,879 crore.
- Loan Disbursements rose 63 percent to Rs 1,971 crore.
Cummins India (Q3, YoY)
- Stock rose as much as 10.9 percent to Rs 652.80.
- Revenue fell 3.8 percent to Rs 1,456.4 crore.
- Net profit rose 1.2 percent to Rs 199.9 crore.
- Ebitda fell 5 percent to Rs 216.5 crore.
- Margin stood at 14.9 percent versus 15.1 percent.
Thirumalai Chemicals (Q3, YoY)
- Stock fell as much as 11.4 percent to Rs 67.10.
- Revenue fell 24.4 percent to Rs 244.8 crore.
- Net loss at Rs 1.3 crore versus Net Profit at Rs 11.4 crore.
- Ebitda fell 45.1 percent to Rs 14.5 crore.
- Margin stood at 5.9 percent versus 8.2 percent.
Gayatri Projects Falls For Twelfth Day In A Row
Shares of Gayatri Projects extended declines for the twelfth consecutive trading session and are set for their longest losing streak in nearly two years. The stock hit 5 percent lower circuit at Rs 60.05.
The scrip declined 31 percent in 12 trading sessions. The Relative Strength Index was at 19, indicating that the stock may be oversold, according to Bloomberg data.
Bajaj Finance Gains Ahead Of Q3 Results
Shares of Bajaj Finance extended gains for the second consecutive trading session and rose as much as 1.1 percent to Rs 4,257.70.
Here’s what analysts tracked by Bloomberg expect the company to report:
Key Earnings Preview (Q3, YoY)
- Net interest income seen 25.3 percent higher at Rs 3,994 crore.
- Net profit seen 39.9 percent higher at Rs 1,482 crore.
Tata Steel Top Performer On Sensex, Nifty
Shares of Tata Steel rose as much as 2.6 percent to Rs 457.65. The stock was the best performer on Sensex and Nifty.
The scrip halted its three-day losing streak. It declined 4.7 percent in the past five days and fell 3.6 percent in the past 30 days.
Tata Steel traded at 11 times its estimated earnings per share for the coming year, according to Bloomberg data.
HFCL Halts Three-Day Losing Streak
Shares of HFCL rose as much as 1.8 percent to Rs 17.20, halting their three-day losing streak.
The company plans to acquire 47.9 percent stake in Bigcat Wireless for Rs 22.5 crore. The target company shall carry out the development of advanced wireless communication products including 4G and 5G wireless products and HFCL shall have the right to manufacture and sell these products and also own intellectual property rights of certain products.
The stock declined 21 percent in the past 12 months compared to a 15 percent gain in the Sensex.
Cholamandalam Investment Gains After Large Trade
Shares of Cholamandalam Investment and Finance rose as much as 1.5 percent to Rs 330.55.
About 33 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Of the shares traded, 98 percent were at the ask price and 1 percent were at the bid, according to Bloomberg data.
Opening Bell: Sensex, Nifty Open Higher
Indian indices opened higher after declining for two consecutive trading sessions.
The S&P BSE Sensex rose 0.52 percent to 41,169 and the NSE Nifty 50 rose 0.51 percent to 12,116.75. The broader markets represented by the NSE Nifty 500 Index rose 0.53 percent.
The market breadth was tilted in favour of buyers. About 1,043 stocks advanced and 383 shares declined on National Stock Exchange.
All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 1.54 percent gain.
Your Complete F&O Trade Setup
Index Futures
- Nifty January futures closed at 12,068, premium of 12.2 points versus 6.7 points.
- Nifty futures open interest across series up 1 percent, adds 82,000 shares in open interest.
- Nifty Bank January futures closed at 30,771.6, premium of 10.2 points versus 41.6 points.
- Nifty Bank futures open interest across series up 3 percent, adds 54,000 shares in open interest.
- Rollovers –Nifty at 29 percent, Nifty Bank at 32 percent.
Options
- Nifty PCR at 0.99 versus 1.10 (across all series).
Nifty Monthly Expiry: Jan. 30
- Max open interest on call side at 12,200 (56.1 lakh shares).
- Max open interest on put side at 12,000 (34 lakh shares).
- Open interest addition seen at 12,100C (+21.3 lakh shares), 12,150C (+7.7 lakh shares).
- Open interest shedding seen at 12,200P (-6.7 lakh shares), 12,000P (-5.7 lakh shares).
Trading Tweaks: Alpa Laboratories, Bal Pharma, BLB, Morarjee Textiles
- Bal Pharma, BLB, Morarjee Textiles to move into ASM Framework.
- GFL, GVK Power & Infrastructure, Sundaram Multi Pap to move into short term ASM Framework.
- Alpa Laboratories, RDB Rasayans, Gulshan Polyols, Hindustan Composites, Linc Pen & Plastics, Omax Autos, Uttam Value Steels, Swelect Energy Systems to move out of short term ASM Framework.
- Paisalo Digital price band revised to 10 percent.
Money Market Update: Rupee Opens Higher
The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much a 0.15 percent to 71,22 against the greenback.
Pre-Market Check: Sensex, Nifty Set To Open Higher
Indian stocks are set to open higher.
The S&P BSE Sensex rose 0.43 percent to 41,142 during the pre-market trade and the NSE Nifty 50 rose 0.7 percent to 12,141.
How Indian ADRs Fared Overnight
Stocks To Watch: HFCL, Ricoh India, Tata Coffee, Thirumalai Chemicals
- Thirumalai Chemicals’ update on various projects: Construction of the project in Dahej is progressing as per schedule; Phthalic Anhydride Revamp Project has been completed and is in stable operation; The company has formed a Netherlands arm TCL Global BV and will commence business activities from the next fiscal; The U.S. arm is in the final stage of evaluating its food ingredients project and is close to finalising the necessary approvals and funding.
- Ricoh India’s Insolvency: Bombay High Court has dismissed a petition filed by Kotak Investment Advisors. Kotak Investment Advisors had challenged the National Company Law Tribunal’s approval of Ricoh India's resolution plan submitted by Kalpraj Dharamshi and Rekha Jhunjhunwala. (Bombay High Court Order)
- Tata Coffee: Board approved the sale of up to 1.6 lakh shares (0.06 percent) held by the company in Tata Chemicals, through the secondary market.
- Ircon International to consider share split on Feb. 11.
- Cochin Shipyard launched a 1,200-person cum 1,000-tonne cargo vessel.
- Wonderla Holidays said that the proposed Chennai project in process of getting approvals from Tamil Nadu Single Window Guidance Bureau. Board approved a proposal to set up an amusement park in Odisha.
- KEI Industries allocated 1 crore shares at Rs 500 per share which is at a discount of 3.5 percent to its floor price of Rs 518.14 per share. QIP Issue has been closed on Jan. 28.
- HFCL will acquire 47.9 percent stake in Bigcat Wireless for Rs 22.5 crore. The target company shall carry out the development of advanced wireless communication products including 4G and 5G wireless products and HFCL shall have the right to manufacture and sell these products and also own intellectual property rights of certain products.
- KPI Global Infra received an order for executing solar power project of 950 kilowatt from Sailaxmi Tex.
Q3 Earnings Corner: Bajaj Finance, Bajaj Finserv, Escorts, Godrej Consumer
Nifty Earnings To Watch
- Bajaj Finance
- Bajaj Finserv
Other Earnings To Watch
- Tata Power
- IDFC First Bank
- NIIT Technologies
- Nilkamal
- Orient Cement
- Pidilite Industries
- Trident
- Vaibhav Global
- Pokarna
- PTC Industries
- Quess Corp
- Escorts
- Jubilant Foodworks
- Crompton Greaves Consumer Electricals
- Dixon Technologies
- Accelya Solutions
- Godrej Consumer Products
- KPIT Technologies
- Meghmani Organics
- Nava Bharat Ventures
- Ramco Cements
- Transport Corporation of India
- Kaya
- Ramco Industries
- Security and Intelligence Services
- Sundram Fasteners
- Taj GVK Hotels & Resorts
- Shriram Asset Management
- Greenlam Industries
- Aptech
- Bharat Gears
- Birla Corporation
- Chemfab Alkalis
- Cholamandalam Financial Holdings
- Foseco
- GOCL Corporation
- Garware Polyester
- Maithan Alloys
- MPS
- TCI Developers
Earnings Reaction To Watch
Tata Coffee (Q3, YoY)
- Revenue rose 7.7 percent to Rs 501.4 crore.
- Net profit rose 2.2 times to Rs 24.9 crore.
- Ebitda rose 54.2 percent at Rs 85.1 crore.
- Margin stood at 17 percent versus 11.9 percent.
Mahindra & Mahindra Financial Services (Q3, YoY)
- Calculated Net Interest Income rose 9.8 percent to Rs 1,580.7 crore
- Net profit rose 18.2 percent to Rs 471.6 crore
- AUM rose 16 percent to Rs 75,884 crore
- Value of Assets Financed fell 2 percent to Rs 1,3218.2 crore
- Impairment Costs rose 72 percent to Rs 420.2 crore
Wonderla Holidays (Q3, YoY)
- Revenue fell 8 percent to Rs 70 crore.
- Net profit rose 44.8 percent to Rs 21 crore.
- Ebitda fell 16.1 percent to Rs 25 crore.
- Margin stood at 35.7 percent versus 39.2 percent.
JK Lakshmi Cement (Q3, YoY)
- Revenues rose 7.5 percent to Rs 1,005 crore.
- Net profit rose 3.3 times to Rs 49.2 crore.
- Ebitda rose 54.6 percent to Rs 152 crore.
- Margin stood at 15.1 percent versus 10.5 percent.
Tube Investments of India (Q3, YoY)
- Revenue fell 25.4 percent to Rs 1087.4 crore.
- Net profit rose 31.8 percent to Rs 82 crore.
- Ebitda fell 10 percent to Rs 132 crore.
- Margin stood at 12.1 percent versus 10.1 percent.
Spandana Sphoorty Financial (Q3, YoY)
- Net interest income rose 43 percent to Rs 233 crore.
- Revenue rose 20.2 percent to Rs 350 crore.
- Net profit rose 39.4 percent to Rs 129.5 crore.
- AUM rose 40 percent to Rs 5,879 crore.
- Loan Disbursements rose 63 percent to Rs 1,971 crore.
Cummins India (Q3, YoY)
- Revenue fell 3.8 percent to Rs 1,456.4 crore.
- Net profit rose 1.2 percent to Rs 199.9 crore.
- Ebitda fell 5 percent to Rs 216.5 crore.
- Margin stood at 14.9 percent versus 15.1 percent.
Thirumalai Chemicals (Q3, YoY)
- Revenue fell 24.4 percent to Rs 244.8 crore.
- Net loss at Rs 1.3 crore versus Net Profit at Rs 11.4 crore.
- Ebitda fell 45.1 percent to Rs 14.5 crore.
- Margin stood at 5.9 percent versus 8.2 percent.
Global Markets Update: U.S. Stocks End Higher; Oil Rebounds
- U.S. stocks climbed the most since October on speculation that efforts to contain the coronavirus will prevent a major economic fallout.
- Oil rebounded from its lowest level since mid-October as investors weighed the extent to which China’s coronavirus would hurt fuel demand.
Get your daily fix of global markets here.
SGX Nifty Suggests Positive Start; Asian Stocks Trade Mixed
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.33 percent to 12,108 as of 8:45 a.m.
Asian stocks saw mixed trading Wednesday after a rebound on Wall Street, with investors continuing to mull the economic dangers from the spreading coronavirus.
Hong Kong’s Hang Seng dropped about 2.5 percent as markets reopened Wednesday, with the city’s stocks catching up to the global slide since last week. China futures advanced. U.S. equity futures ticked up. Shares rose in South Korea, Australia and Japan.
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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