Indian equity benchmarks erased opening gains to halt a three-day rally. The S&P BSE Sensex Index fell as much as 0.43 percent to 36,469.98 and the NSE Nifty 50 Index fell as much as 0.49 percent to 10,852.20 as of 10:10 a.m.
The market breadth was tilted in favour of sellers. About 1,021 stocks declined and 534 shares advanced on the National Stock Exchange.
Ten out of the 11 sectoral gauges compiled by the NSE declined, dragged down by the NSE Nifty Pharma Index’s 2.9 percent fall. On the flip side, the NSE Nifty Metal Index was the only sectoral gainer, up 0.17 percent.
Here Are The Stocks Moving The Market This Morning
Reliance Industries Gains After Q3 Results
Shares of Reliance Industries Ltd. rose as much as 2 percent to Rs 1,157.10.
The Mukesh Ambani-led company’s standalone profit rose 0.8 percent over the previous three months to Rs 8,928 crore in the quarter ended December, according to its stock exchange notification. (More details here)
Key highlights (Q3, QoQ)
- Revenue up 4 percent to Rs 1,00,096 crore.
- Net profit up 0.8 percent to Rs 8,928 crore.
- Ebitda down 2.6 percent to Rs 14,507 crore.
- Ebitda margin at 14.5 percent versus 15.5 percent.
- GRM down 7.4 percent to $8.8 a bbl versus $9.5.
Reliance Jio (Q3, QoQ)
- Revenue up 12 percent to Rs 10,383 crore.
- Net profit up 22 percent to Rs 831 crore.
- Ebitda up 13.4 percent to Rs 4,052 crore.
- Ebitda margin at 39 percent versus 38.7 percent.
- ARPU down 1.5 percent to Rs 130.
Here's what analsyts had to say after the company announced their quarterly results:
UBS
- Maintained “Sell” with a price target of Rs 1,070.
- Petchem better than expectations; other income driven beat.
- Expect investors to look positively at increasing contribution from RIL's consumer businesses, robust performance in petchem and GRM.
Macquarie
- Maintained “Outperform” with a price target of Rs 1,315.
- Petchem was the key positive surprise, while refining, Jio, and retail were in line.
- Expect RIL’s refining margins to strengthen to $15, $20 and $18 in the next three financial years respectively.
- See upside risk to consensus’ earnings estimates.
Edelweiss
- Maintained “Buy” with a price target of Rs 1,415.
- Consumer and petchem shine; lower operational expenditure offsets lower GRM.
- De-merger of non-core telecom assets could prove to be a game changer.
- Multiple triggers: petcoke gasifier on schedule for March 2019 and an imminent fiber-to-the-home roll out.
Prabhudas Lilladher
- Maintained “Accumulate” with a price target of Rs 1,238.
- Stellar petrochemicals performance make up for weak refining earnings.
- RIL with high complexity well placed to capitalise benefits of IMO 2020.
- Maintain rating as we await clarity on petcoke commercialisation.
Sun Pharma Trades Near Six-Year Low
Shares of the country’s largest pharmaceutical company fell as much as 13.2 percent, the most since 2015, to trade at nearly a six-year low at Rs 370.20.
Trading volume was 12.9 times its 30-day moving average, Bloomberg data showed. The stock was the worst performer on Sensex and Nifty.
HUL Fluctuates After Q3 Results
Shares of the country’s largest fast moving consumer goods company fluctuated between gains and losses to trade 0.4 percent lower at Rs 1,744.50.
The company delivered double-digit volume growth for the fifth straight quarter (more details here).
Key earnings highlights (Q3, YoY)
- Revenue up 11.3 percent at Rs 9,558 crore.
- Net profit up 8.9 percent at Rs 1,444 crore.
- Ebitda up 21.8 percent at Rs 2,046 crore.
- Margin at 21.4 percent versus 19.6 percent.
- Volume growth at 10 percent.
Here's what analysts had to say after the company announced its quarterly results:
CLSA
- Maintained “Outperform” with a price target of Rs 2,010.
- Overall earnings in-line with our forecasts.
- Volume growth of 10 percent is commendable.
- Tougher base from hereon – execution is strength.
Macquarie
- Maintained “Outperform”; cut price target to Rs 2,059 from Rs 2,086.
- Like focus on driving higher penetration in categories which are leading superior volume growth.
- Cut earnings estimate by 1-2 percent on lower pricing and other income assumptions.
- Demand environment stable with rural demand at 1.3 times of urban.
UBS
- Maintained “Neutral” with a price target of Rs 1,800.
- December quarter review: Good volume growth, but profit miss.
- Management cautioned about one-off costs post completion of GSK acquisition.
- See EPS upgrades post Horlicks deal, still valuating impact on stock valuations.
Bharti Airtel, Vodafone Idea Drop On Reliance Jio’s Strong Growth
Shares of Bharti Airtel and Vodafone Idea dropped as much as 6.58 percent and 6.50 percent each, respectively, after Reliance Jio reported strong December quarter and announced monetisation plans to cut debt.
Wipro Swings Ahead Of Results Announcement
Shares of Wipro fluctuated between gains and losses to trade a little changed at Rs 335.70 ahead of its quarterly results announcement for the October-December period.
Here’s what analysts tracked by Bloomberg expect Wipro to report for the December quarter on a sequential basis:
- IT services revenue seen up 1.4 percent at $2,070 million.
- Revenue seen up 4.1 percent at Rs 15,167 crore.
- EBIT seen up 23 percent at Rs 2,577 crore.
- EBIT margin at 17 percent versus 14.4 percent.
- Net Profit seen up 22.6 percent at Rs 2,313 crore.
Other Stocks Reacting To Earnings
L&T Technology Services (Q3, YoY)
- Stock fluctuated between gains and losses to trade at Rs 1,757.65.
- Revenue up 35.9 percent at Rs 1,316.9 crore.
- Net profit up 47 percent at Rs 185.6 crore.
- Ebitda up 63 percent at Rs 241.7 crore.
- Margins at 18.4 percent versus 15.3 percent.
Cyient (Q3, QoQ)
- Stock fell as much as 8.6 percent to Rs 575.25.
- Revenue flat at Rs 1188 crore.
- Net profit down 27 percent at Rs 92.3 crore.
- EBIT up 11.1 percent at Rs 137.7 crore.
- Margin at 11.6 percent versus 10.4 percent.
- Other income of Rs 56.9 crore in base quarter.
AU Small Finance Bank (Q3, YoY)
- Stock fell as much as 4.7 percent to Rs 641.80.
- Net Interest Income up 38.9 percent at Rs 347.9 crore.
- Net profit up 20.8 percent at Rs 95.3 crore.
- Provisions at Rs 32.5 crore.
- GNPA at 2.09 percent versus 2.03 percent.
- NNPA at 1.31 percent versus 1.28 percent.
Rallis India (Q3, YoY)
- Stock fell as much as 6.1 percent to Rs 163
- Revenue up 7 percent at Rs 417.4 crore.
- Net profit down 44.6 percent at Rs 13.9 crore.
- Ebitda down 26.7 percent at Rs 27.7 crore.
- Margins at 6.6 percent versus 9.7 percent.
- Materials Cost up 43 percent at Rs 281.6 crore.
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