All You Need To Know Going Into Trade On January 28
Asian equities are declining after peers in the U.S. saw their biggest single-day drop since October last year.
The U.S. Federal Reserve kept policy rates unchanged and reiterated that they are nowhere close to exiting the massive support for the economy.
Benchmarks in Japan, South Korea and Australia trade with losses. Below than estimate earnings from technology majors added to valuation concerns.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.8% to 13,916 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 60 points higher. The index fell 2% on Wednesday.
- Fed Chairman Jerome Powell said at a press conference that the U.S. economy was a long way from full recovery and still short of policy makers’ inflation and job goals.
- Apple shares fell despite quarterly revenue topping $100 billion after a cautious outlook from the company. Tesla's record revenue was offset by a lower-than-expected profit while Facebook warned of 'significant uncertainty' in 2021.
- The European Union failed to resolve its dispute with AstraZeneca Plc over vaccine supplies, raising the risk of additional delays to the bloc’s sluggish innoculation campaign.
- Yield on the 10-year treasuries stood at 1.02%.
- West Texas Intermediate crude fell 0.8% to $52.44 per barrel.
Get your daily fix of the global markets here.
Hindustan Unilever Q3FY21 (Standalone, YoY)
- Revenue up 21% at Rs 11,862 crore Vs Rs 9,808 crore (BBG Estimate: Rs 11,276 crore)
- Net profit up 18.8% at Rs 1,921 crore Vs Rs 1,616 crore (BBG Estimate: Rs 2,052.5 crore)
- Ebitda up 16.7% at Rs 2,854 crore Vs Rs 2,445 crore
- Ebitda margin at 24% Vs 24.9%
- Volume growth for the quarter at 4%
- Tea and palm prices are up more than 50% year-on-year
- Discretionary consumption has made a strong comeback
- Rural markets are growing in double-digits
- Premium portfolio has grown in high single-digits
Axis Bank Q3FY21 (Standalone, YoY)
- Net Interest Income up 14% at Rs 7,373 crore Vs Rs 6,453 crore (BBG Estimate: Rs 7,472 crore)
- Net profit down 36% at Rs 1,116 crore Vs Rs 1,757 crore (BBG Estimate: Rs 2,356 crore)
- Gross NPA at 3.44% Vs 4.18% (QoQ)
- Net NPA at 0.74% Vs 0.98% (QoQ)
- Proforma Gross NPA at 4.55% Vs 4.28%
- Proforma Net NPA at 1.19% Vs 1.03%
- Provisions at Rs 4,604.3 crore Vs Rs 4,580.6 crore (QoQ) and Rs 3,470.9 crore (YoY)
Stocks To Watch
- Hero MotoCorp: Enters into a distribution agreement with Grupo Salinas in Mexico to form one of the largest distribution networks globally to sell competitive, high-quality products in the Mexican market. The company targets rapid expansion in the country over the next three years. The first phase will see Hero launch nine products, including motorcycles for work, street, premium and on-off segments along with scooters. The company is now present in more than 10 countries in Latin America.
- PVR: Launches QIP on Wednesday in order to raise funds. The floor price of Rs 1,495.93 per share is a 0.7% premium to Wednesday's closing price. The company may, at its discretion, consider offering a discount on the floor price within the prescribed limits under SEBI regulations. Board will meet on February 1 to determine the issue price of the QIP.
- Aditya Birla Fashion and Retail: To acquire 51% stake in Sabyasachi Couture for Rs 398 crore in an all-cash deal. The company says that the acquisition is in-line with its stated long-term strategy of building a formidable play in the ethnic wear segment. Sabyasachi's overall revenue for FY20 stood at 274 crore rupees. Deal is expected to be completed in 30-45 days.
- Power Grid: Power Grid Infrastructure Investment Trust (PGInvIT), has filed a draft offer document with SEBI, in relation to the proposed IPO. The IPO is proposed to consist of a fresh issue of units by PGInvIT and an offer for sale of units by Power Grid.
- Quess Corp: Board approves subscription of 49% equity shares in Taskmo, legal entity name - Stellarslg Technovation Pvt. Ltd., a gig economy start-up for Rs 10 crore, to be invested in multiple tranches. Taskmo is a B2B managed marketplace that serves as an on-demand task fulfilment platform.
- Astral Poly: To consider issue of bonus shares at its board meeting on February 3.
- NTPC: 140 MW capacity Bilhaur Solar PV Project in Uttar Pradesh has been declared on commercial operations from January 18. With this, the commissioned capacity of NTPC and NTPC group stands at 51,310 MW and 63,925 MW respectively while commercial capacity is 51,310 MW and 63,265 MW respectively.
- GTPL Hathway: Has sold entire 51% equity stake and 100% stake in preference shares in Vaji Communications for a cash consideration of Rs 3.3 lakh and Rs 6.15 lakh respectively. Sold its entire 51% equity stake in Vizianagar for a cash consideration of Rs 5,100. Post this, Vaji Communications and Vizianagar have ceased to be subsidiaries of the company.
- GMR Infrastructure: GMR Hyderabad International Airport, a step down subsidiary of the company, announced that it had successfully pric ed an offering of $300 million bond in the international bond market on January 26, 2021. GHIAL has entered into a Purchase Agreement to issue and allot $300 million 4.75% senior secured notes of 5-year tenure. The proceeds from the notes will be used towards the capital expenditure with respect to the master plan (expansion) of the Rajiv Gandhi International Airport at Hyderabad, increasing the capacity of the Airport to 34 million Passengers Per Annum.
- Cosmo Films: Has declared an Interim dividend of Rs 25 per equity share. The dividend will be paid on or before February 26, 2021.
- NCL Industries: The transaction for the purchase of 100% equity stake in Tern Distilleries in terms of the Share Purchase Agreement executed with United Spirits has been completed.
- Endurance Technologies: CRISIL Ratings has upgraded the long-term rating for bank credit facilities worth Rs 918.03 crore to AA+/Stable from AA/Positive. The rating agency also reaffirmed the short-term rating for bank credit facilities/Commercial Papers worth Rs 100 crore at A1+.
- Union Bank of India: To issue 205 Basel-Ill Compliant Perpetual Debt instruments in the nature of Debentures eligible for inclusion in Additional Tier-1 Capital Series XXlX of face value of Rs 1 crore, aggregating up to Rs 205 crore with a Green Shoe Option of Rs 300 crore on a private placement basis.
- SBI Cards and Payment Services: Managing Director & CEO, Ashwini Kumar Tewari, has tendered his resignation from directorship of the company from January 27, 2021, owing to his appointment as the Managing Director of State Bank of India. He will also cease to be the MD & CEO of the company from the said date.
- HUL: Appoints Ritesh Tiwari as ED-Finance and chief financial officer from May 1. Ritesh Tiwari will also take over as vice president finance, South Asia, Unilever. Current CFO, Srinivas Phatak will move to Unilever’s headquarters in London as EVP financial control and risk management and be part of the Finance Leadership Executive Team.
- Nifty Earnings: Maruti Suzuki India
- Non-Nifty Earnings: Aarti Industries, Aegis Logistics, Alembic, Angel Broking, AU Small Finance Bank, Bharat Electronics, Blue Dart, Coforge, Colgate-Palmolive, Cummins India, Eclerx, Engineers India, Equitas Small Finance Bank, GHCL, Goa Carbon, Granules India, IDBI Bank, IFB Industries, InterGlobe Aviation, Indus Towers, IRCTC, KEC International, KEI Industries, Laurus Labs, Lupin, M&M Financial, Motilal Oswal Financial Services, Oracle Financial Services, Orient Bell, Orient Cement, Persistent Systems, Pidilite, Radico Khaitan, RBL Bank, Shriram Transport Finance, Sudarshan Chemicals, Tata Chemicals, Teamlease, TVS Motor, United Breweries, Welspun Corp
Earnings Post Market Hours
United Spirits Q3FY21 (Standalone YoY)
- Revenue down 4% at Rs 2,488.7 crore Vs Rs 2,582.5 crore (BBG Estimate: Rs 2,584.8 crore)
- Net profit down 11% at Rs 229.9 crore Vs Rs 258.8 crore (BBG Estimate: Rs 221.6 crore)
- Ebidta down 9% at Rs 282.8 crore Vs Rs 424 crore (BBG Estimate: Rs 385.4 crore)
- Ebidta margin at 15.4% from 16.4% (BBG Estimate: 14.9%)
- Prestige & Above segment net sales declined 0.8%
- Popular segment net sales declined 6.7%
- Gross Margins up 24 basis points to 44.6% driven by benign commodities and continued focus on productivity
- Interest costs fell 17% due to reduced debts and lower interest rates
- Not providing quantitative guidance for FY21 despite a quicker rebound than originally expected
ICICI Prudential Q3FY21 (Standalone, YoY)
- Gross Premium Income up 11% at Rs 9,152 crore Vs Rs 8,263.6 crore
- Net profit flat at Rs 305.5 crore Vs Rs 302.5 crore
- Solvency Ratio at 226.1% Vs 207.2%
- 13th month persistency ratio at 82.4% Vs 80%
- 61st month persistency ratio at 58.8% Vs 55.3%
- New business premium up 14% at Rs 3,443 crore
- VNB Margins for 9MFY21 at 26% Vs 21% in 9MFY20
PNB Housing Finance Q3FY21 (Standalone, YoY)
- Net Interest Income up 3% at Rs 626.4 crore Vs Rs 608.4 crore
- Net profit down 5% at Rs 223.2 crore Vs Rs 235 crore
- Pre-Provisioning Operating profit up 15% to Rs 550 crore Vs Rs 479 crore
- Disbursements flat year-on-year at Rs 3,203 crore and up 31% (QoQ)
- Gross NPA at 2.64% Vs 2.59% (QoQ). Proforma gross NPA is at 4.47%.
- Net NPA at 1.41% Vs 1.46% (QoQ)
JK Paper Q3FY21 (Consolidated, YoY)
- Revenue down 9% at Rs 744.88 crore vs Rs 820.65 crore
- Ebitda down 33% at Rs 155.19 crore vs Rs 230.65 crore
- Ebitda Margin at 20.8% vs 28.1%
- Net Profit down 51% at Rs 64.59 crore vs Rs 131.85 crore
Tata Coffee Q3FY21 (Consolidated, YoY)
- Revenue up 6% at Rs 532.76 crore vs Rs 501.42 crore
- Ebitda up 13% at Rs 96.37 crore vs Rs 85.12 crore
- Ebitda Margin at 18.1% vs 17%
- Net Profit up 20% at Rs 50.18 crore vs Rs 41.99 crore
Nippon India Life AMC Q3FY21 (Consolidated, YoY)
- Revenue down 11% at Rs 268.5 crore Vs Rs 303.1 crore
- Net profit up 42% at Rs 212 crore Vs Rs 149.3 crore
- Net profit higher due to higher other income
- Other income more than doubles to Rs 130.4 crore Vs Rs 57.5 crore
- Total Assets Under Management at Rs 3.52 lakh crore
- Share of equity assets as % of AUM rose to 39.1 from 38.9 (QoQ)
- Sagar Cements: Promoter RV Consulting Services acquired 5,100 shares on January 27.
As Reported On January 27.
- Price Band Revised From 10% To 5%: Tata Steel Long Products
Ex-Date EGM: Shree Rama Multi-Tech
- Ex-Date Interim Dividend: GMM Pfaudler, Indian Energy Exchange, Havells India.
- Record Date Buyback: GAIL
- Record Date Interim Dividend: DCM Shriram, GAIL
- Record Date Income Distribution (InvIT): India Grid Trust
Money Market Update
- The currency ended at 72.91 against the U.S. Dollar, as compared to Monday's close of 72.94.
- Nifty January futures end at 13,981; premium of 14 points
- Nifty January futures shed 33.1% and 42,174 shares in Open Interest
- Nifty Rollovers at 53.12%
- Nifty Bank January futures end at 30,350; premium of 66 points
- Nifty Bank January futures shed 34.2% and 19,447 shares in Open Interest
- Nifty Bank Rollovers at 54.72%
- Nifty Put-Call Ratio at 0.58
- Out of F&O Ban: Nalco, PNB
- Stocks in F&O Ban: SAIL