All You Need To Know Going Into Trade On January 22
Asian equities have pulled back from a record high on the final trading day of the week. Investors assess earnings, prospects for stimulus and rising cases of Covid-19.
Benchmark indices fell in Australia and Japan while those in South Korea pared early gains. The U.S. Dollar is on course for its first weekly drop in three.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.25% to 14,610 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 trading 30 points lower. The index ended little changed on Thursday.
- ECB President Christine Lagarde warned that the virus continues to pose a serious risk after policy makers voted for unprecedented stimulus into the economy.
- U.S. infectious-disease chief Anthony Fauci said that the seven-day average of new infections in the U.S. suggests that the virus may be 'plateauing.'
- Yields on the 10-year treasuries stood at 1.11%.
- West Texas Intermediate crude fell 0.2% to $53 per barrel.
Get your daily fix of the global markets here.
Stocks To Watch
- Vedanta: Mined metal production in Q3FY21 was 2.44 lakh tonnes, up 4% year-on-year, on account of higher iron ore production. Integrated metal production up 7% year-on-year to 2.35 lakh tonnes due to lower concentrate treatment. Integrated saleable silver production up 23% to 5.8 moz, due to higher lead production, partially offset by lower grade at SK mines. Iron ore production in Karnataka up 21% to 1.4 million tonnes while pig iron production down 19% to 1.45 lakh tonnes. Total saleable production of steel up 7% year-on-year to 3.4 lakh tonnes. Aluminium production at Lanjigarh refinery down 14% to 4.07 lakh tonnes
- Bajaj Auto: Looking to resume booking for its electric scooter Chetak in 2-3 months. Bookings had closed in March 2020 and had not reopened due to supply chain constraints.
- Asian Paints: Expects demand conditions to remain strong in Q4FY21. The company will wait to see if raw material prices sustain at these levels before taking a call on any price changes.
- SRF: All business segments returned to normal operations. Specialty Chemicals business did well owing to strong demand from the overseas market, higher capacity utilisation and significant cost-savings. Fluorochemicals business saw revival in demand of refrigerants. New capacities in Thailand and Hungary aided volume growth and both BOPET and BOPP segments witnessed robust performance. Technical textiles business did well aided by faster-than-expected recovery in the tyre industry.
- Jubilant Lifesciences: Record date for the demerger of Life Sciences Ingredients from the company into Jubilant Ingrevia has been set as February 5, 2021. Shareholders will get one share of Jubilant Ingrevia for every one share held in Jubilant Life.
- Transport Corporation of India: To consider interim dividend for FY21 at its board meeting on February 3, record date for which will be February 11, 2021.
- Punjab & Sind Bank: NPA account of M/s Supertech Township Projects with outstanding dues of Rs 94.29 crore has been declared as fraud and reported to the Reserve Bank of India. The account has been fully provided for.
- Shriram City Union Finance: Has approved the issue of Secured, principal, protected, market-linked NCDs of face value of Rs 10 lakh each for an amount of Rs 125 crore with green shoe option of upto Rs 25 crore aggregating upto 1,500 NCDs amounting to Rs 150 crore on Private Placement basis.
- IEX: Has approved an interim dividend of Rs 2.50 per share of face value of Re 1 each for the financial year ending March 31, 2021. The record date for the payment of interim dividend is January 30, 2021.
- Zensar Technologies: Has declared interim dividend of Rs 1.20 per share of Rs 2 each. The record date for the same is February 1, 2021.
- Jindal Stainless: Has approved early redemption of secured NCDs (original allotment of 2,500 NCDs at face value of Rs 10 lakh each) having outstanding balance of Rs 52.08 crore.
- Nifty Earnings Today: Reliance Industries, HDFC Life, JSW Steel, SBI Life
- Non-Nifty Earnings Today: Century Textiles, Crompton Greaves Consumer Electricals, Fineotex Chemicals, Gujarat Ambuja Exports, Gland Pharma, Indian Bank, Mangalam Organics, Ramkrishna Forgings, Swaraj Engineering, Symphony, V-Mart Retail, Wendt, YES Bank, Fineotex Chemical, India Grid Trust, Oberoi Realty.
Earnings Post Market Hours
SBI Cards & Payments Services Q3FY21 (Standalone, YoY)
- Revenue down 3% at Rs 2,403.2 crore Vs Rs 2,479.1 crore
- Net profit down 52% at Rs 209.7 crore Vs Rs 434.6 crore
- Gross NPA at 1.61% Vs 4.3% (QoQ)
- Net NPA at 0.56% Vs 0.83% (QoQ)
- Proforma Gross and net NPA would have been 4.51% and 1.58% respectively
- Capital adequacy ratio at 23.7%
- New accounts volume rose 8% to 9.18 lakh Vs 8.48 lakh last year
- Total Gross Advances (Credit card receivables) at Rs 25,749 crore Vs Rs 24,776 crore
Cyient Q3FY21 (Consolidated, QoQ)
- Revenue up 4% at Rs 1,044.3 crore Vs Rs 1,003.3 crore
- Ebit up 3% at Rs 115 crore Vs Rs 109.8 crore
- Ebit Margins at 11% Vs 10.9%
- Net Profit up 14% at Rs 95.4 crore vs Rs 83.9 crore
Highest ever Ebit margin for DLM business; up 594 basis points QoQ to 10.6%
- Won five multi-year deals with total contract potential of $106 million
- Retains FY21 guidance of double-digit decline in revenue
MCX Q3FY21 (Consolidated, YoY)
- Revenue up 7% at Rs 100.90 crore Vs Rs 94.11 crore (BBG Estimate: Rs 110.9 crore)
- Ebitda up 11% at Rs 48.68 crore Vs Rs 44.04 crore (BBG Estimate: Rs 53 crore)
- Ebitda Margins at 48.2% Vs 46.8%
- Net Profit up 29% at Rs 71.8 crore Vs Rs 55.57 crore (BBG Estimate: Rs 61 crore)
Aavas Financiers Q3FY21 (Standalone, YoY)
- Net Interest Income up 34% at Rs 193.1 crore Vs Rs 144.3 crore (BBG Estimate: Rs 163.7 crore)
- Net profit up 26% at Rs 85.6 crore Vs Rs 67.9 crore (BBG Estimate: Rs 72 crore)
- Disbursements up 2% year-on-year and 15% quarter-on-quarter at Rs 764.5 crore
- Collection efficiency for the month of December at 98.8%
- Overall additional provision for potential Covid-19 impact at Rs 19 crore
- Assets Under Management up 22.6% at Rs 8,822.6 crore
- Gross Stage 3 assets at 1% Vs 0.47% (QoQ)
- Net Stage 3 assets at 0.72% Vs 0.32% (QoQ)
JK Tyre Q3FY21 (Standalone, YoY)
- Revenue up 22% at Rs 2,769.3 crore Vs Rs 2,274.8 crore (BBG Estimate: Rs 2,400 crore)
- Net profit up 110% at Rs 230.4 crore Vs Rs 109.7 crore (BBG Estimate: Rs 60.8 crore)
- Ebitda up 41% at Rs 500.4 crore Vs Rs 355 crore (BBG Estimate: Rs 275.6 crore)
- Ebitda margin at 18.1% Vs 15.6%
- India business revenue up 22% at Rs 2,481.5 crore Vs Rs 2,040.6 crore
- Mexico revenue up 31% at Rs 364.4 crore Vs Rs 278.2 crore
- Results driven by increased demand for passenger and commercial vehicles as well as farm tyres.
- All nine plants in India operated at close to 96% capacity utilisation
- Capacity utilisation at three plants of subsidiary Cavendish was at 95%
- Foresee sustained sales and profitability during the coming period
Mphasis Q3FY21 (Consolidated, QoQ)
- Revenue up 2% at Rs 2,474.3 crore Vs Rs 2,435.4 crore (BBG Estimate: Rs 2,503.7 crore)
- Net profit up 9% at Rs 325.5 crore Vs Rs 299.2 crore (BBG Estimate: Rs 320.7 crore)
- Ebit up 3% at Rs 404.8 crore Vs Rs 392.4 crore (BBG Estimate: Rs 407 crore)
- Ebit Margin at 16.4% Vs 16.1%
- New TCV wins of $247 million, of which 71% in new generation services
- DXC revenue declined 17.9% QoQ and 39.2% YoY on a reported basis
Biocon Q3FY21 (Consolidated, YoY)
- Revenue up 8% at Rs 1,851 crore Vs Rs 1,716.8 crore (BBG Estimate: Rs 1,981.1 crore)
- Net profit down 19% at Rs 186.6 crore Vs Rs 230.3 crore (BBG Estimate: Rs 243.1 crore)
- Ebitda up 10% at Rs 399.5 crore Vs Rs 444.2 crore (BBG Estimate: Rs 512 crore)
- Ebitda margin at 21.6% Vs 25.9%
- Generics business revenue down 3% at Rs 560.7 crore Vs Rs 575.9 crore
- Biosimilars revenue up 11% at Rs 768.9 crore Vs Rs 693 crore
- Research Services revenue up 13% at Rs 584.5 crore Vs Rs 519.1 crore
- Continue to face headwinds across operational, regulatory and commercial functions which have been deterrents to our planned market expansion.
- Expect normalisation by the next fiscal
Pledge Share Details
- Sun Pharma: Promoter Shanghvi Finance revoked pledge of 45.45 lakh shares on January 18.
- Asahi India Glass: Promoter Sanjay Labroo revoked pledge of 6 lakh shares on December 31.
As Reported On January 21.
- Confidence Petroleum India: Setu Securities bought 14.47 lakh shares (0.53%) at Rs 38.69 per share and sold 6.54 lakh shares (0.24%) at Rs 39.39 per share. Alpha Leon Enterprises LLP bought 15.29 lakh shares (0.56%) at Rs 38.60 per share and sold 4.72 lakh shares (0.17%) at Rs 39.17 per share. Cohesion MK Best Ideas Sub-Trust bought 40 lakh shares (1.46%) at Rs 38.50 per share.
- Apollo Tyres: Tower Research Capital Markets India bought 34.26 lakh shares (0.54%) at Rs 215.27 per share and sold 35.47 lakh shares (0.56%) at Rs 215.75 per share.
- JK Tyre & Industries: Mindtrade Securities LLP bought 14.71 lakh shares (0.60%) at Rs 118.34 per share and sold 14.81 lakh shares (0.60%) at Rs 118.44 per share.
- SML Isuzu: OPG Securities bought 80,224 shares (0.55%) at Rs 507.76 per share and sold 1.13 lakh shares (0.79%) at Rs 514.23 per share. Algoquant Financials LLP bought 1 lakh shares (0.69%) at Rs 514.3 per share.
- Ex-Date Interim Dividend: Wipro, CESC
- Record Date Rights Issue: L&T Finance Holdings
- Ex-Date AGM: Jyoti Structures
- Ex-Date Income Distribution (InvIT): Tower Infrastructure Trust
- Move Out Of Short-term ASM Framework: Gravita India
Money Market Update
- The currency ended at 72.98 against the U.S. Dollar as compared to Wednesday's close of 73.02.
- The rupee ended at the highest level since September 1, 2020.
- Nifty January futures end at 14,639; premium of 49 points
- Nifty January futures shed 2.5% and 4,092 shares in Open Interest
- Nifty Bank January futures end at 32,320; premium of 134 points
- Nifty Bank January futures add 5.6% and 3,209 shares in Open Interest
- Nifty Put-Call Ratio at 1.13
- Stocks In F&O Ban: SAIL, Sun TV, Vodafone Idea