All You Need To Know Going Into Trade On January 27
Asian equities are mixed in mid-week trading after witnessing their biggest slide in two months.
Benchmark indices in Japan rose, fluctuated in South Korea while those in Australia declined after resuming post a holiday.
Oil prices edged higher, gold was steady while Bitcoin remained around the $32,000 mark.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.8% to 14,190 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 little changed. The index ended flat on Tuesday.
- Nasdaq futures rose after Microsoft said that second quarter sales rose faster than expected, owing to buoyant cloud demand.
- New variants of the Coronavirus that sparked fresh lockdowns and other restrictions are also weighing on the rally in global equities.
- “For the reopening trade to really have persistence it is going to need to show a much broader participation across the market,” Jim McDonald, chief investment strategist at Northern Trust, said on Bloomberg TV. “The virus vaccine rollout is the most important development to help give confidence in the shape of the recovery.”
- Yield on the 10-year treasuries stood at 1.04%.
- West Texas Intermediate crude rose 0.4% to $52.8 per barrel.
Get your daily fix of the global markets here.
L&T Q3FY21 (Consolidated, YoY)
- Revenue down 1.8% at Rs 35,596.4 crore Vs Rs 36,242 crore
- Net profit up 5% at Rs 2,466.7 crore Vs Rs 2,352.1 crore
- Ebitda margin at 12% Vs 11.4%
- Received fresh orders worth Rs 73,233 crore in Q3 - the highest ever
- Order book for the nine months ended December stood at Rs 1.24 lakh crore
Stocks To Watch
- Affle India: Enters into a definitive business transfer agreement to acquire the business assets of Discover Tech - a company registered in Israel. The investment is strategic for Affle's consumer platform business. The fixed consideration for business transfer is $1.15 million in cash and a maximum success fee of $3.37 million will be paid over a period of a maximum of four years. In another transaction, the company's wholly-owned Singapore subsidiary has entered into a definitive share purchase agreement to sell its 8% minority investment in OSLabs, Singapore to its promoter Group company Affle Global for a consideration of $2.86 million.
- Adani Ports & SEZ: Finance committee approves the issuance of fixed rate senior unsecured notes worth $500 million at 3.1% per annum for a period of ten years. The company intends to use the proceeds from the issue of the notes, together with the cash on hand to fund the proposed tender offer and to redeem, for cash, any and all of its senior notes due 2022. If the tender offer and redemption are not completed for any reason, the company intends to use a substantial portion of the proceeds to repay its existing indebtedness, after RBI approval if needed.
- Auto Stocks: Road Transport and Highways ministry approves proposal to levy a 'Green Tax' on old vehicles that are polluting the environment. Transport vehicles older than eight years can be charged at the time of renewal of fitness certificate, at the rate of 10-25% of road tax. Personal vehicles to be charged at the time of renewal of Registration Certification after 15 years. Higher Green tax (50% of Road Tax) for vehicles being registered in highly polluted cities.
- Future Retail: The company has received a communication from Amazon NV Investment Holdings LLC informing that it has filed a petition under Section 17(2) of Arbitration and Conciliation Act, 1996 before Delhi High Court. The company has informed that it will defend the proceedings.
- HG Infra Engineering: lrcon International has cancelled the tender of GevraPendra/Pkg 1 in Chhattisgarh due to high quoted/revised rate, for which the company was declared L-1 bidder by lrcon International. The estimated project cost was Rs 713.69 crore and the company's bid price was Rs 784.99 crore.
- Dhanlaxmi Bank: Shareholders vote in favour of appointing JK Shivan as MD & CEO. 99.8% shareholders voted in favour of the board's proposal. The appointment is now pending RBI approval. Shivan is the former Deputy MD at State Bank of India.
MSTC: Has received approval from Excise Department, Government of Rajasthan, for conducting an e-Auction for Liquor Shop License Contracts through MSTC's portal www.mstcecommerce.com.
- Bank of Baroda: The Central Bank of the UAE has imposed a financial sanction of approximately Rs 13.56 crore on the bank's GCC Operations in Dubai for deficiencies in compliance of AML and Sanctions Compliance Framework as of December 31, 2019. The bank is engaged with the relevant stakeholders and is exploring all necessary options available to get the aforesaid financial sanctions lifted.
- Agro Tech Foods: The company has restarted its commercial production and operations at its plant situated at Unnao, UP. This plant produces Tortilla Chips, Ready to Eat Popcorn, Extruded Snacks and Centre filled Cereal Snacks etc.
- Adani Transmission: Total Renewables, France has acquired 100% stake in Universal Trade and Investments, which was disclosed as part of the company's promoter group. Post this transaction, UT has now become part of the Total group and is no longer part of the promoter group of the company.
- Hindustan Zinc: Chief Financial Officer (KMP) - Swayam Saurabh has resigned from the services of the company, to pursue a career outside the group.
- Inox Leisure: Has commenced the commercial operations of cinema, taken on Leave & License basis, located at Thane (West) with effect from January 26, 2021.
- Nifty Earnings: Axis Bank, Hindustan Unilever
- Non-Nifty Earnings: Bank of Baroda, Canara Bank, Cosmo Films, Emami, HG Infra, ICICI Prudential Life Insurance, India Cements, JK Paper, Jyothy Laboratories, Laxmi Machine Works, Mahindra EPC, Marico, PNB Housing, Poly Medicure, PSP Projects, Quess Corp, Tata Coffee, United Spirits, Welspun India
Earnings Post Market Hours
ICICI Securities Q3FY21 (Consolidated, YoY)
- Revenue up 47% at Rs 619.8 crore Vs Rs 422 crore
- Net profit up 96% at Rs 266.9 crore Vs Rs 136.1 crore
- Broking and Distribution revenue up 49% at Rs 579.2 crore Vs Rs 387.5 crore
- Cost to Income Ratio down to 42%
- Overall active clients up 17% at 1.63 million
- Private Wealth Management revenue up 86% to Rs 114 crore
- Assets Under Management up 45% at 1.47 lakh crore
- Highest ever addition of clients in a quarter at 1.39 lakh
- Distribution revenue up 5% at Rs 108 crore
Mahindra Holidays & Resorts Q3FY21 (Standalone, YoY)
- Revenue down 10% at Rs 226.6 crore Vs Rs 252.2 crore
- Net profit up 62% at Rs 40.6 crore Vs Rs 25 crore
- Ebitda up 15% at Rs 63.7 crore Vs Rs 55.2 crore
- Ebitda margin at 28.1% Vs 21.9%
- Member additions at 3,291
- Resort occupancy at 75% Vs 30% in Q2FY21
- Operations of European subsidiary Holiday Club Resorts was affected due to the second wave of Covid-19 amid local restrictions
Navin Fluorine Q3FY21 (Consolidated, YoY)
- Revenue up 19% at Rs 309.1 crore Vs Rs 260.5 crore
- Net profit up 25% at Rs 56.4 crore Vs Rs 45.1 crore
- Ebitda up 23% at Rs 80.5 crore Vs Rs 65.5 crore
- Ebitda margin at 26% Vs 25.1%
- 65% revenue contribution from high value business
- Weak demand for legacy business due to Covid is slowly returning to normal
- Working on capacity expansion and enhancing product portfolio
Can Fin Homes Q3FY21 (Standalone, YoY)
- Net Interest Income up 21% at Rs 213.6 crore Vs Rs 177 crore
- Net profit up 24% at Rs 131.9 crore Vs Rs 106.6 crore
- Covid-19 provisions at Rs 72.9 crore
- Gross NPA at 0.68% Vs 0.72% (QoQ)
- Net NPA at 0.41% Vs 0.46% (QoQ)
- Disbursements down 25% at Rs 1,106 crore Vs Rs 1,477 crore
Pledge Share Details
- Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 6.29 crore shares on January 22.
As Reported On January 25.
- Aptech: Sapphire Intrex bought 3 lakh shares (0.74%) at Rs 201.5 per share. Abhishek Khaitan bought 2.5 lakh shares (0.62%) at Rs 200.01 per share.
- JK Tyre & Industries: Navodya Enterprises bought 15 lakh shares (0.61%) at Rs 142.03 per share. XTX Markets LLP bought 15.50 lakh shares (0.63%) at Rs 139 per share and sold 15.65 lakh shares (0.64%) at Rs 139.24 per share.
- Ex-Date Rights Issue: Emerald Leasing Finance & Investment Company
- Ex-Date Buyback: GAIL
- Ex-Date Interim Dividend: DCM Shriram, GAIL
- Ex-Date Final Dividend: Siemens
- Ex-Date Income Distribution (InvIT): India Grid Trust
- Ex-Date Resolution Plan -Suspension: Garden Silk Mills, Jaihind Projects
- Price Band Revised From 20% To 10%: Gateway Distriparks
- Move Into Short-term ASM Framework: Gateway Distriparks
Money Market Update
- The currency ended little changed at 72.94 against the U.S. Dollar as compared to Friday's close of 72.97.
- Nifty January futures end at 14,254; premium of 16 points
- Nifty January futures shed 16% and 24,124 shares in Open Interest
- Nifty Rollovers at 32%
- Nifty Bank January futures end at 31,188; discount of 10 points
- Nifty Bank January futures shed 3.6% and 2,141 shares in Open Interest
- Nifty Bank Rollovers at 32.48%
- Nifty Put-Call Ratio at 0.67
- Stocks In F&O Ban: Nalco, PNB, SAIL