Sensex, Nifty Clock Worst Three-Day Fall In Nearly Two Months

Indian equity benchmarks closed lower for the third straight trading session, clocking their worst three-day fall since Dec. 24, 2018.

The S&P BSE Sensex Index closed 0.66 percent lower today at 36,153.62 and the NSE Nifty 50 Index ended at 10,831.40, down 0.53 percent.

The market breadth was tilted in favour of sellers. About 1,002 stocks declined and 733 stocks advanced on National Stock Exchange.

Eight out of 11 sectoral gauge compiled by NSE fell, led by the NSE Nifty PSU Bank Index’s 1.6 percent decline. On the flipside, the NSE Nifty Media Index was the top secoral gainer, up 1.33 percent.

Here are the fab four stocks of the day:

RITES (Q3, YoY)

• Stock fell as much as 3.4 percent to Rs 213.
• Revenue up 42.2 percent to Rs 511.4 crore.
• Net profit up 10.2 percent to Rs 117.5 crore.
• Ebitda down 2.2 percent to Rs 133.2 crore.
• Margin to 26. percent versus 37.9 percent.
• Turnkey Construction Project Costs to Rs 108 crore versus Rs 18.3 crore

Redington (India) (Q3, YoY)

• Stock rose as much as 16.5 percent to Rs 77.
• Revenue up 11.7 percent to Rs 12630.1 crore.
• Net profit up 13.9 percent to Rs 145.1 crore.
• Ebitda up 32.1 percent to Rs 276.7 crore.
• Margin to 2.2 percent versus 1.9 percent.
• Impairment of Goodwill and Other Intangible to Rs 71.1 crore in the current quarter.

NCC (Q3, YoY)

• Stock rose as much as 7.5 percent to Rs 84.65.
• Revenue up 63.5 percent to Rs 3378.7 crore.
• Net profit up 70.3 percent to Rs 165.9 crore.
• Ebitda up 63 percent to Rs 414.4 crore.
• Margins flat at 12.3 percent.

Heidelbergcement India (Q3, YoY)

• Stock rose 2.6 percent to Rs 146.05.
• Revenue up 14.8 percent to Rs 563.9 crore.
• Net profit up 84.3 percent to Rs 58.6 crore.
• Ebitda up 48.1 percent to Rs 122.6 crore.
• Margins at 21.7 percent versus 16.9 percent.

Shares of Can Fin Homes rose as much as 12.6 percent, the most since Oct. 24, 2018, to Rs 269.85.

Trading volume was 6.7 times its 30-day average, Bloomberg data showed. The stock has declined 7.3 percent so far this year compared to a 0.7 percent advance in the Sensex.

Hindalco Industries Ltd., along with its Utkal unit, reported a net profit of Rs 713 crore during October-December period, an increase of 47 percent from the year ago period, according to its stock exchange filing.

Key earnings highlights (Standalone + Utkal unit) (Q3, YoY)

• Revenue up 8.1 percent to Rs 11,938 crore.
• Net profit up 47.3 percent to Rs 713 crore.
• Ebitda up 3 percent to Rs 1,926 crore.
• Margin at 16.1 percent versus 16.9 percent.

Shares of Hindalco rose 0.7 percent to Rs 200.80 after the results announcement.

Shares of the Graphite electrode makers—Graphite India and HEG rebound after the latter reported its quarterly results for the three months ended December.

Key earnings highlights (Q3, YoY)

• Revenues up 2.2 times to Rs 1,865 crore.
• Net profit up 35 percent to Rs 866.8 crore.
• Ebitda up 2.4 times to Rs 1,313.5 crore.
• Margin at 70.4 percent versus 66.2 percent.

The Reserve Bank of India governor Shaktikanta Das held a meeting with foreign portfolio investors today in Hong Kong.

“Good participation and discussion,” Das tweeted referring to the meeting.

Shares of gas distributors—Indraprastha Gas Ltd. and Mahanagar Gas Ltd. have corrected 10 percent in the last four trading sessions.

A high-powered committee has recommended withdrawal of gas supply at concessional rates to CNG users and proposed direct subsidy to only domestic kitchens, according to a report by Hindustan Times on Feb. 11.

Currently CGDs use domestically produced gas for CNG. The prices of which are lower compared to imported gas. If CGDs end up using imported gas for CNG purpose, then the prices would be higher by 40-50 percent. This increase in price could weigh on CNG volumes. Currently IGL and MGL derive more than 80 percent and 65 percent of their revenue from CNG sales.

The NSE Nifty Metal Index jumped 2.6 percent, driven by Jindal Steel & Power and SAIL’s 8.8 percent and 6.4 percent rally respectively.

Shares of the country’s largest drug maker fluctuated between gains and losses to trade 0.69 percent higher at Rs 431.55 ahead of its quarterly results announcement for the three months ended December.

Here’s what analysts traded by Bloomberg expects the company to report on a yearly basis in its December quarter earnings:

• Net sales seen 11 percent higher at Rs 7,415 crore.
• Net profit expected to gain 2.7 times at Rs 980 crore.
• Ebitda seen 11 percent higher at Rs 1,616 crore.
• Operating margin expected to be flat at 21.8 percent.

Nifty’s 10,900 option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 8.39 percent to Rs 49.15. Over 8.19 lakh shares were added to the open interest which stood at over 13.5 lakh shares.

Shares of the graphite electrode makers—Graphite India Ltd. and HEG Ltd. falls over 8 percent ahead of HEG's quarterly results announcement.

Shares of the technology companies fell in today's trade, led by the declines in Infosys Ltd. Tata Consultancy Services Ltd. and HCL Technologies Ltd.

HAL (Q3, YoY)

• Stock fell as much as 2.9 percent to Rs 640.05.
• Revenue up 3.4 percent to Rs 4,425.3 crore.
• Net profit down 17 percent to Rs 455.2 crore.
• Ebitda up 9.5 percent to Rs 890.4 crore.
• Margin at 20.1 percent versus 19 percent.

Astral Poly Technik (Q3, YoY)

• Stock fell as much as 1.4 percent to R 1,127.
• Revenue up 23.7 percent to Rs 633.7 crore.
• Net profit up 13.8 percent to Rs 52.7 crore.
• Ebitda up 27.3 percent to Rs 93.7 crore.
• Margin at 14.8 percent versus 14.4 percent.

JBM Auto (Q3, YoY)

• Stock rose as much as 2.1 percent to Rs 260.
• Revenue up 8.5 percent to Rs 429.9 crore.
• Net profit up 19.2 percent to Rs 18 crore.
• Ebitda up 5.6 percent to Rs 70.2 crore.
• Margin at 16.3 percent versus 16.8 percent.

PI Industries (Q3, YoY)

• Stock rose as much as 9.3 percent to Rs 915.
• Revenue up 31.6 percent to Rs 707.5 crore.
• Net profit up 33.1 percent to Rs 107.3 crore.
• Ebitda up 41.9 percent to Rs 148.6 crore.
• Margin at 21 percent versus 19.5 percent.

Triveni Turbine (Q3, YoY)

• Stock rose as much as 2.8 percent to Rs 103.
• Revenue up 27.6 percent to Rs 211.3 crore.
• Net profit up 17.5 percent to Rs 22.8 crore.
• Ebitda up 7.8 percent to Rs 35.8 crore.
• Margin at 16.9 percent versus 20 percent.

Corporation Bank (Q3, YoY)

• Stock rose as much as 5.5 percent to Rs 26.
• Net Interest Income up 3.1 percent to Rs 1303 crore.
• Net profit at Rs 60.5 crore versus net Loss to Rs 1240.5 crore.
• Provisions at Rs 842.3 crore (QoQ).
• GNPA at 17.36 percent versus 17.46 percent (QoQ).
• NNPA at 11.47 percent versus 11.65 percent (QoQ).

Andhra Bank (Q3, YoY)

• Stock fell as much as 3.4 percent to Rs 23.
• Net Interest Income up 1.6 percent to Rs 1698.3 crore.
• Net loss of Rs 578.6 crore versus net loss of Rs 532 crore.
• Provisions at Rs 1790.2 crore (QoQ).
• GNPA at 16.68 percent versus 16.36 percent (QoQ).
• NNPA at 6.99 percent versus 7.49 percent (QoQ).

Reliance Home Finance (Q3, YoY)

• Stock fell as much as 9.9 percent to Rs 23.70.
• Revenue up 26 percent to Rs 514 crore.
• Net profit up 37.5 percent to Rs 55 crore.
• AUM up 24 percent to Rs 18,288 crore.
• Capital Adequacy Ratio at 18.8 percent.
• GNPA at 0.9 percent as on December 2018.

CARE Ratings (Q3, YoY)

• Stock fell as much as 5.4 percent to Rs 918.20.
• Revenue down 6 percent to Rs 73 crore.
• EBIT down 22.6 percent to Rs 35.3 crore.
• EBIT Margin at 48.4 percent versus 58.6 percent.
• Net profit down 18.5 percent to Rs 30.6 crore.
• Other income up 84 percent to Rs 8.8 crore.

• NHPC: About 71 lakh shares changed hands in a block deal.
• Petronet LNG: About 22.1 lakh shares changed hands in a block deal.

Buyers and sellers were not known immediately.

Source: Bloomberg

Shares of Gujarat Narmada Valley Fertilizers and Chemicals Ltd. extended declines for the second day and fell as much as 12.2 percent to Rs 270.10, its lowest level since Aug. 22, 2017.

The company reported a net profit of Rs 165.7 crore, a decline of 27.3 percent from the year ago period, according to its stock exchange filing.

Key earnings highlights (Q3, YoY)

• Revenue down 23.4 percent to Rs 1219.2 crore.
• Ebitda down 81.3 percent to Rs 80 crore.
• Margin at 6.6 percent versus 26.9 percent.

Shares of the Mumbai-based lender fell for the third day and declined as much as 1.5 percent to Rs 700.

The government said it will launch an offer-for-sale to divest up to 3 percent stake in Axis Bank Ltd. it holds through Specified Undertaking of United Trust of India as it rushes to meet its divestment target for the ongoing financial year.

The sale will fetch the exchequer a little less than Rs 5,500 crore, a government official told BloombergQuint requesting anonymity. (More details here).

The stock has returned 13.7 percent so far this year and advanced 24.9 percent in the past 12 months.

Indian equity benchmarks swung between gains and losses after declining in the last three trading sessions.

The S&P BSE Sensex Index traded 0.1 percent higher at 36,442.95 as of 9:18 a.m. and the NSE Nifty 50 Index traded around 10,900.

The market breadth was tilted in favour fo buyers. About 763 stocks advanced and 667 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Media Index 1.09 percent rally. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.7 percent.

The Indian rupee extended gains for the sixth day against the U.S. dollar. The home currency appreciated nearly 0.1 percent to 71.18 against the greenback.

On Eicher Motors

CLSA

• Maintained ‘Outperform’; hiked price target to Rs 23,900 from Rs 22,300.
• Weak volumes, but commendable margin resilience at Royal Enfield.
• Volume growth under pressure; new 650cc bike seeing decent initial response.
• Remain believers in RE’s long-term growth potential.

Macquarie

• Maintained ‘Outperform’ with a price target of Rs 24,000.
• Royal Enfield sales impacted by large price increases.
• Expect Royal Enfield sales growth to pick-up.
• Structural demand drivers remain intact.

Jefferies

• Maintained ‘Buy’; cut price target to Rs 23,700 from Rs 27,100
• December quarter review: Sharp increase in realization drives positive surprise.
• Cut revenue/EBITDA estimates for FY19-21 by 2-10 percent.
• Despite near-term headwinds see strong medium to long-term prospects.

On Motherson Sumi

CLSA

• Maintained ‘Outperform’; cut price target to Rs 150 from Rs 180.
• Weak Indian auto demand hurting standalone business.
• SMRP to benefit from ramp-up of new plants but demand concern in Europe too.
• Cut FY19-21 EPS estimates by 6-10 percent to factor in lower topline growth and margins in India.

Macquarie

• Maintained ‘Outperform’ with a price target of Rs 185.
• India business weaker, while international business performed better.
• Debt reduction aided by working capital reduction.
• Well aligned to growth drivers in industry.

More Calls

UBS on Thermax

• Maintained ‘Sell’ with a price target of Rs 815.
• Earnings missed estimates driven by big margin miss and lower revenue.
• Execution remains strong, but orders to stagnate over medium term.
• See no industrial capex cycle recovery over the medium term.

UBS on Apollo Hospitals

• Maintained ‘Buy’ with a price target of Rs 1,590.
• Operationally good December quarter though pledging an interim pain.
• Liquidation of promoter stake in Apollo Munich to aid in reduction of pledge.
• Ayushman Bharat - limited impact on corporate hospitals.

SBICAP on SpiceJet

• Maintained ‘Buy’ with a price target of Rs 109.
• Rising cost offsets strong revenue growth.
• Trading PLF for yield; Upfront cash incentives aided revenue.
• Return of pricing discipline and cost-reduction measures to drive improvement.

Deutsche Bank Research on General Insurance Corp

• Maintained ‘Hold’; cut price target to Rs 300 from Rs 375.
• Growth weakens, Combined Ratio eases; high tax rate impacts profitability.
• Combined ratio for Fire and Agri rises on a sequential basis; other key segments see lower combined ratio.

F&O Cues

• Nifty February futures closed trading at 10909, premium of 21 points.
• Max open interest for February series at 11,100 Call (open interest at 9.7 lakh shares).
• Max open interest for February series at 10,800 Put (open interest at 6.3 lakh shares).

Stocks In F&O Ban

• In ban: Adani Enterprises, IDBI, DHFL, Jet Airways, Reliance Capital, Reliance Power.
• Out of ban: Reliance Infrastructure.

Put Call Ratio

• Nifty PCR at 1.47 versus 1.59.

• Ajanta Pharma record-date for share buyback.
• Religare Enterprises, Vipul, Binani Industries, Reliance Home Finance, Reliance Naval & Engineering, Leel Electricals to move into short term ASM Framework.
• IG Petrochemicals price band revised to 10 percent.

• Reliance Infra: Regime De Retraite D Hydro-Quebec sold 13.4 lakh shares or 0.52 percent equity at Rs 118.34 each.
• Bliss GVS Pharma: Polus Global Fund sold 42 lakh shares or 4.07 percent equity at Rs 145.01 each.

Nifty Earnings To Watch

• Coal India
• Hindalco Industries
• Sun Pharmaceutical

Other Earnings To Watch

• 3M India
• 63 Moon Technologies
• Asahi India Glass
• Bajaj Hindusthan
• Bata India
• CG Power
• Clariant Chemicals
• Container Corp.
• CRISIL
• Dhanuka Agritech
• GE Power India
• HEG
• HeidelbergCement India
• Indian Hotels
• IPCA Laboratories
• J Kumar Infraprojects
• Jain Irrigation
• Karur Vysya
• LUX Industries
• Manpasand Beverages
• Natco Pharma
• NCC Ltd.
• NLC India
• Oil India
• Omaxe
• Prabhat Dairy
• Prestige Estates
• Punjab & Sind Bank
• Rashtriya Chemicals
• Redington India

Earnings Reaction To Watch

HAL (Q3, YoY)

• Revenue up 3.4 percent to Rs 4,425.3 crore.
• Net profit down 17 percent to Rs 455.2 crore.
• Ebitda up 9.5 percent to Rs 890.4 crore.
• Margin at 20.1 percent versus 19 percent.

Astral Poly Technik (Q3, YoY)

• Revenue up 23.7 percent to Rs 633.7 crore.
• Net profit up 13.8 percent to Rs 52.7 crore.
• Ebitda up 27.3 percent to Rs 93.7 crore.
• Margin at 14.8 percent versus 14.4 percent.

JBM Auto (Q3, YoY)

• Revenue up 8.5 percent to Rs 429.9 crore.
• Net profit up 19.2 percent to Rs 18 crore.
• Ebitda up 5.6 percent to Rs 70.2 crore.
• Margin at 16.3 percent versus 16.8 percent.

PI Industries (Q3, YoY)

• Revenue up 31.6 percent to Rs 707.5 crore.
• Net profit up 33.1 percent to Rs 107.3 crore.
• Ebitda up 41.9 percent to Rs 148.6 crore.
• Margin at 21 percent versus 19.5 percent.

Triveni Turbine (Q3, YoY)

• Revenue up 27.6 percent to Rs 211.3 crore.
• Net profit up 17.5 percent to Rs 22.8 crore.
• Ebitda up 7.8 percent to Rs 35.8 crore.
• Margin at 16.9 percent versus 20 percent.

Corporation Bank (Q3, YoY)

• Net Interest Income up 3.1 percent to Rs 1303 crore.
• Net profit at Rs 60.5 crore versus net Loss to Rs 1240.5 crore.
• Provisions at Rs 842.3 crore (QoQ).
• GNPA at 17.36 percent versus 17.46 percent (QoQ).
• NNPA at 11.47 percent versus 11.65 percent (QoQ).

Gujarat Narmada Valley Fertilizers and Chemicals (Q3, YoY)

• Revenue down 23.4 percent to Rs 1219.2 crore.
• Net profit down 27.3 percent to Rs 165.7 crore.
• Ebitda down 81.3 percent to Rs 80 crore.
• Margin at 6.6 percent versus 26.9 percent.

Andhra Bank (Q3, YoY)

• Net Interest Income up 1.6 percent to Rs 1698.3 crore.
• Net loss of Rs 578.6 crore versus net loss of Rs 532 crore.
• Provisions at Rs 1790.2 crore (QoQ).
• GNPA at 16.68 percent versus 16.36 percent (QoQ).
• NNPA at 6.99 percent versus 7.49 percent (QoQ).

Reliance Home Finance (Q3, YoY)

• Revenue up 26 percent to Rs 514 crore.
• Net profit up 37.5 percent to Rs 55 crore.
• AUM up 24 percent to Rs 18,288 crore.
• Capital Adequacy Ratio at 18.8 percent.
• GNPA at 0.9 percent as on December 2018.

CARE Ratings (Q3, YoY)

• Revenue down 6 percent to Rs 73 crore.
• EBIT down 22.6 percent to Rs 35.3 crore.
• EBIT Margin at 48.4 percent versus 58.6 percent.
• Net profit down 18.5 percent to Rs 30.6 crore.
• Other income up 84 percent to Rs 8.8 crore.

• Axis Bank: Specified Undertaking of Unit Trust of India (SUUTI) plans to sell 1.98 percent stake on Feb.12, with an option to sell additional 1.02 percent stake in the Bank. Floor price of the offer is set at Rs 689.52 per share, with total aggregate consideration of Rs 3500 crore. Offer to open for retail investors on Feb. 13.
• Bank of America is said to have bid for part of SBI’s $2.2 billion loans to Essar.
• Dr Reddy’s Laboratories: Indivior lost bid to stay mandate in the company’s Suboxone Case. The Appeals court has denied Indivior’s request that would have further delayed Dr. Reddy’s from selling a generic version of Suboxone Film. Previously, U.S. Court of Appeals had overturned order that blocked Dr. Reddy’s from selling copy of opioid addiction treatment. The mandate sending case to trial court to dissolve order goes into effect from Feb. 11.
• Max Financial Services: Group said that Analjit Singh will become Chairman of Max India and Max Life with effect from April 1. As per the transition plan, Rahul Khosla will become Group Advisor from his current post of Group President. The company said that Rahul Khosla will demit his role as Chairman of Max Healthcare once regulatory approvals for the transaction with KKR-Radiant are received. This position will then be filled by KKR Radiant.
• Persistent Systems appointed Christopher O’ Conner as CEO Designate. The company said that he will join the company via U.S. arm with effect from Feb. 25.
• Tata Steel BSL: Board approved issuing Non-Convertible Preference Shares up to Rs 12,000 crore to Tata Steel and/or issue Optionally Convertible Preference Shares up to Rs 12,000 crore.
• KNR Constructions to sell entire shareholding in its SPV with Cube Highways and Infra for Rs 34.46 crore
• Alembic Pharma’s JV (with Orbicular) received two observations from the U.S. FDA inspection at its Gujarat’s formulation manufacturing facility.
• Indian Overseas Bank: RBI levied penalty of Rs 1.5 crore on the bank due to non-monitoring of end use of funds and delay in reporting of fraud in respect of one of its borrowers.
• IFCI increased benchmark rates for short term loans by 10 basis points to 9.3 percent. Benchmark rates for long term loans remains unchanged at 10.75 percent.
• Arshiya’s two arms to acquired warehouses in Uttar Pradesh for Rs 118 crore.
• JK Tyres: Board to consider issuing preference share issue to promoter group on Feb. 14.
• Edelweiss Financial Services: Allianz Management to invest $200 million in the company’s Private Debt Platform.
• Max Ventures & Industries’ arm Max Learning to be restructured as to serve as a real estate service vertical of the company.
• Gulf Oil Lubricants announced association with Mahindra Logistics for supply chain solutions.

• 5:30 p.m.: India January Consumer Price Inflation YoY; Bloomberg estimates at 2.54 percent (prior 2.19 percent).
• 5:30 p.m.: India December industrial production YoY; Bloomberg estimates at 1.5 percent (prior 0.5 percent).
• Chinese Vice Premier Liu He expected to join U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in high-level trade talks Thursday and Friday
• Sweden’s Riksbank is expected to keep interest rates at minus 0.25 percent on Wednesday after the first increase in more than seven years in December.
• Data Wednesday is expected to show U.S. consumer prices rose 0.1 percent in January, after falling 0.1 percent in December.
• If no deal is reached on the U.S-Mexico border wall, parts of the federal U.S. government may shut down again later this week when stopgap government funding expires.

• Brent crude ended 0.95 percent lower at $61.51 per barrel.
• West Texas Intermediate crude rose 0.2 percent to $52.50 a barrel.
• Gold was stable at $1,307.25 an ounce.

London Metal Exchange

• Aluminium ended lower for the fourth day, down 0.05 percent.
• Tin ended 0.12 percent lower.
• Zinc ended lower for the second day, down 2.22 percent.
• Copper ended lower for the third day, down 0.97 percent.
• Nickel ended lower for the second day, down 0.64 percent.
• Lead ended 1.66 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.24 percent to 10,905 as of 8:05 a.m.

Japanese stocks climbed, leading the Asia-Pacific region higher. Equity benchmarks in Sydney and Seoul also rose, while Hong Kong opened to modest losses.

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