All You Need To Know Going Into Trade On January 21
.A book vendor reads a newspaper in Mumbai, India (Photographer: Brent Lewin/Bloomberg)

All You Need To Know Going Into Trade On January 21

Global equities climbed to a fresh all-time high this morning post U.S. President Joe Biden's inauguration.

Investors are optimistic that fiscal spending will revive growth and aid earnings.

Asian benchmarks rose for the third straight day, led by Japan and South Korea.

Oil priced edged lower along with the U.S. Dollar.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.45% to 14,709 as of 6:55 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Let’s take a look at the factors that may influence equities in today’s session:

  • Futures on the Dow Jones are currently trading with gains of 30 points. The index ended 0.8% higher on Wednesday.
  • S&P 500 posted its best first-day reaction to a presidential inauguration since at least 1937.
  • “If stimulus happens at the same time that people get vaccinated, the optimism can’t help but build,” said Keith Buchanan, a portfolio manager for GLOBALT Investments in Atlanta.
  • China Mobile Ltd., China Unicom Hong Kong Ltd. and China Telecom Corp. Ltd. filed a request with the New York Stock Exchange for a review of its decision to delist their stocks from the New York bourse.
  • Yields on the 10-year treasuries stood at 1.08%.
  • West Texas Intermediate crude fell 0.5% to $53.02 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On January 21

Nifty Earnings

Bajaj Finance Q3FY21 (Consolidated, YoY)

  • Net Interest Income down 5% at Rs 4,295.8 crore Vs Rs 4,530.6 crore
  • Net profit down 29% at Rs 1,146 crore Vs Rs 1,641 crore (BBG Estimate: Rs 1,181.2 crore)
  • Gross NPA at 0.55% Vs 1.03% (QoQ)
  • Proforma Gross NPA at 2.86% Vs 1.34% (QoQ)
  • Loan losses and provisions at Rs 1,352 crore Vs Rs 831 crore
  • Post Q3 provisions, estimate residual credit costs in Q4 at Rs 1,200-1,250 crore
  • One-time principal write-off of Rs 1,970 crore on account of Covid-19 related stress
  • Restructures Rs 2,400 crore under RBI permitted plan
  • In the process of launching Bajaj Pay for consumers in Q4. To offer payment solutions Via UPI, PPI, EMI Cards and Credit cards

Also read: Bajaj Finance Q3 Results: Net Profit Down 29%

Bajaj Finserv Q3FY21

  • Net Interest Income up 13% to Rs 13,700.1 crore vs Rs 12,139.5 crore
  • Net profit up 15% to 1,289.96 crore vs Rs 1,125.64 crore

Stocks To Watch

  • Reliance Industries: SEBI grants conditional approval to Future Group's scheme of arrangement and sale of assets to Reliance Retail. Based on this, the Bombay Stock Exchange has also granted a 'no adverse observation' report to the Rs 27,513 crore deal. SEBI has allowed the deal with some riders. Click here for details.
  • Laurus Labs: Completes the acquisition of 72.55% stake in Richcore Licesciences Pvt. Ltd. Richcore has now become a subsidiary of the company. The definitive agreement for the same was signed in November 2020.
  • Aditya Birla Fashion and Retail: The Competition Commission of India has accorded its approval to Flipkart for its proposed acquisition of 7.8% equity stake in the company on a fully diluted basis. The company had approved issuance of equity shares on a preferential basis to Flipkart for an amount aggregating up to Rs 1,500 crore on October 23, 2020.
  • Sagar Cement: Has declared a second interim dividend of Rs 2 per share for the financial year 2020-21 on the 2.35 lakh shares of Rs 10 each of the company and has fixed February 3, 2021, as the Record Date for the purpose.
  • UltraTech Cement: To consider and evaluate a proposal for raising of funds in one or more tranches through methods or combinations as decided by the board on January 23.
  • Axis Bank: Gets approval from the Competition Commission of India for deal with Max Life Insurance.
  • Indigo Paints: Issue subscribed 1.9 times on the first day of bidding. Institutional subscription at 0.1x, non-institutional subscription at 1.1x while retail subscription at 3x.
  • IRFC: Overall subscription at 3.5 times on the final day of bidding. Institutional subscription at 3.78 times, non-institutional subscription at 2.66 times while retail portion subscribed 3.66 times.
  • Nifty Earnings: Asian Paints, Bajaj Auto
  • Non-Nifty Earnings: Aavas Financiers, Apollo Tricoat Tubes, Bandhan Bank, Biocon, Bliss GVS Pharma, Cyient, Indo Count Industries, Indian Energy Exchange, IIFL Securities, JSPL, JK Tyre, Kajaria Ceramics, MCX, Mphasis, Music Broadcast, Saregama, SBI Cards & Payment Services, South Indian Bank, SRF, Supreme Petrochem, Westlife Development, Zensar Technologies.

Earnings Post Market Hours

L&T Technology Services Q3FY21 (Consolidated, QoQ)

  • U.S. Dollar revenue up 6.8% at $190 million
  • Revenue up 7% at Rs 1,400.7 crore Vs Rs 1,313.8 crore (BBG Estimate: Rs 1,365.8 crore)
  • Ebit up 18% at Rs 213.20 crore Vs Rs 180.1 crore (BBG Estimate: Rs 212.6 crore)
  • Ebit Margins at 15.2% Vs 13.7%
  • Net Profit up 12% at Rs 187 crore Vs Rs 166.3 crore (BBG Estimate: Rs 171.1 crore)
  • Won 7 deals during the quarter with TCV of $10 million+
  • Deal pipeline is healthy across segments
  • The company has raised its FY21 guidance for which it now expects a revenue decline of 6.5% in U.S. Dollar terms as compared to the earlier guidance of a 7-8% decline.

Havells India Q3FY21 (Standalone, YoY)

  • Revenue up 39% at Rs 3,165 crore Vs Rs 2,269.9 crore (BBG Estimate: Rs 2,627 crore)
  • Net profit up 75% at Rs 349.1 crore Vs Rs 199.5 crore (BBG Estimate: Rs 251.3 crore)
  • Ebitda up 89% at Rs 507.2 crore Vs Rs 269 crore (BBG Estimate: Rs 380 crore)
  • Ebitda margin at 16% Vs 11.9%
  • Switchgears segment revenue up 32% at Rs 437.1 crore Vs Rs 330.9 crore
  • Cables revenue up 27% at Rs 905.2 crore Vs Rs 712.1 crore
  • Lighting & Fixtures revenue up 28% at Rs 353.3 crore Vs Rs 276 crore
  • Electric consumer durables revenue up 46% at Rs 783 crore Vs Rs 536 crore
  • Lloyd consumer revenue up 70% at Rs 511.6 crore Vs Rs 300.4 crore
  • Declares interim dividend of Rs 3 per share

Phillips Carbon Black Q3FY21 (Consolidated, YoY)

  • Revenue flat at Rs 769.4 crore Vs Rs 768.6 crore
  • Net profit up 79% at Rs 125.6 crore Vs Rs 70.2 crore
  • Ebitda up 57% at Rs 188.3 crore Vs Rs 120.1 crore
  • Ebitda margin at 24.5% Vs 15.6%
  • Declares interim dividend of Rs 7 per share
  • Commissioning of new specialty black line in Palej plant, having a capacity of 20 KTPA is expected in February 2021
  • Greenfield project of about 150 KTPA for manufacture of various grades of carbon black and 23 MW of co-generation power over 60 acres of land in Tamil Nadu is expected to be commissioned by March 2023
  • 7 MW co-generation power plant in Kochi is expected to be commissioned by end of 2021

HDFC AMC Q3FY21 (Standalone, YoY)

  • Revenue down 8% at Rs 481.9 crore Vs Rs 524.7 crore (BBG Estimate: Rs 528.1 crore)
  • Net profit up 5% at Rs 369.2 crore Vs Rs 352.5 crore (BBG Estimate: Rs 345.5 crore)
  • Quarterly Average AUM up 2% at Rs 3.89 lakh crore Vs Rs 3.82 lakh crore
  • Number of live individual accounts down 4% at 8.99 million Vs 9.36 million

GMM Pfaudler Q3FY21 (Consolidated, YoY)

  • Revenue up 29% at Rs 201.8 crore Vs Rs 156 crore
  • Net profit up 10% at Rs 23.1 crore Vs Rs 21 crore
  • Ebitda up 38% at Rs 41.8 crore Vs Rs 30.4 crore
  • Ebitda margin at 20.7% Vs 19.5%
  • Glass line equipment revenue up 20% at Rs 109.4 crore Vs Rs 91.1 crore
  • Heavy Engineering revenue up 37% at Rs 20.1 crore Vs Rs 15 crore
  • Declares dividend of Re 1 per share
  • Healthy order backlog along product lines
  • Overall business environment looks very promising
  • In reference to the acquisition of the international business of the Pfaudler Group, the company has received all foreign investment and antitrust approvals and expects to close the transaction soon.

Tejas Networks Q3FY21 (Consolidated YoY)

  • Revenue up 56% to Rs 134.9 crore Vs Rs 86.7 crore (BBG Estimate: Rs 90 crore)
  • Ebitda at Rs 13.6 crore Vs Rs 0.06 crore (BBG Estimate: Rs 10 crore)
  • Ebitda Margins at 10.1% Vs 0.1%
  • Net profit of Rs 9.24 crore from net loss of Rs 111.89 crore (BBG Estimate: Net loss of Rs 35 crore)
  • Order book increased by Rs 73 crore to Rs 672 crore
  • Payments from BSNL have restarted
  • Healthy growth in critical infrastructure segment
  • Strong order inflows from Africa and South East Asia
  • Expect further improvements in cash position in the next few quarters

Pledge Share Details

  • Jindal Steel & Power: Promoter OPJ Trading revoked pledge of 79.8 lakh shares on January 14.
  • Wockhardt: Promoter Themisto Trustee Company revoked pledge of 3 lakh shares on January 15.

As Reported On January 21.

Bulk Deals

  • Kirloskar Oil Engines: SBI Mutual Fund bought 52.23 lakh shares (3.61%) at Rs 125 per share. Nalanda India Fund sold 60 lakh shares (4.15%) at Rs 125 per share.
  • Dhanvarsha Finvest: Yan Securities sold 2 lakh shares (1.31%) at Rs 419.96 per share.

Trading Tweaks

  • Ex-Date Interim Dividend: HCL Technologies, TAAL Enterprises
  • Ex-Date Rights Issue: L&T Finance Holdings
  • Record Date Income Distribution (InvIT): IRB InvIT Fund
  • Price Band Revised From 20% To 10%: Cerebra Integrated Technologies
  • Move Into ASM Framework: Cerebra Integrated Technologies
  • Move Out Of Short-term ASM Framework: Ambika Cotton Mills, Hindustan Composites, Vakrangee

Money Market Update

  • The currency ended at 73.02 against the U.S. Dollar as compared to Tuesday's close of 73.16.

F&O Cues

  • Nifty January futures end at 14,633; discount of 11 points
  • Nifty January futures add 3.6% and 5,722 shares in Open Interest
  • Nifty Bank January futures end at 32,560; premium of 17 points
  • Nifty Bank January futures shed 9.4% and 5,973 shares in Open Interest
  • Nifty Put-Call Ratio at 1.32
  • Enters F&O Ban: Sun TV
  • Out Of F&O Ban: BHEL
  • Stocks In F&O Ban: SAIL, Sun TV, Vodafone Idea
All You Need To Know Going Into Trade On January 21
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