Sensex, Nifty Clock Best Four-Day Rally In Over Two Weeks

Indian equity benchmarks ended higher for the fourth consecutive trading session, its longest winning streak in over two weeks.

The S&P BSE Sensex Index closed 0.1 percent higher at 36,616.81 and the NSE Nifty 50 Index ended at 10,934.35, up 0.2 percent. The broder market index—NSE Nifty 500 Index, however, ended 0.1 percent lower.

The market breadth was also tilted in favour of sellers. About 1,231 stocks declined and 548 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Realty Index's 2.25 percent decline. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 2.27 percent.

Shares of the pharmaceutical company rose as much as 4.6 percent, the most in since November 2018, to Rs 2,859.85.

Indivior Plc was rejected by a U.S. appeals court in its effort to prevent Dr. Reddy’s from selling a generic version of Suboxone Film opioid addiction treatment. (Read the full story here)

The stock as the best performer on NSE Nifty Pharma Index. Trading volume was 2.8 percent its 30-day average.

Shares of Suzlon Energy fell for the second day and declined as much as 42.1 percent, the most since Feb. 28, 2013, to Rs 2.75.

The company said that it is regular in servicing its debt obligations including servicing obligations towards banks and others for the month of January, according to its stock exchange filing.

Trading volume was 11 times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be oversold.

Shares of the natural gas distributor fluctuated between gains and losses to trade a little changed at Rs 329.40 after it announced its quarterly results for the three months ended December.

Key Earnings Highlights (Q3, QoQ)

• Revenue up 2.7 percent to 19,788.98 crore.
• Net profit down 14 percent to Rs 1,681.23 crore.
• Ebitda down 8.7 pecent to 2,673.48 crore.
• Margin at 13.5 percent versus 15.18 percent.

Shares of Apollo Tyres fluctuated between gains and losses to trade 1.8 percent higher at Rs 205.40 after announcing its December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 16 percent at Rs 4718 crore.
• Net profit down 19 percent at Rs 198 crore.
• Ebitda up 6 percent at Rs 528 crore.
• Margin at 11.2 percent versus 12.2 percent.
• One-time loss of Rs 60 crore due to IL&FS Provision.

Shares of of the pharmaceutical company falls for the 10th consecutive trading session, its longest losing streak since July 2008.

The stock fell as much as 6.78 percent to Rs 406.70. The Relative Strength Index was below 30, indicating that the stock may be oversold.

Shares of Maruti Suzuki India Ltd. extended gains for the for the sixth day, its best rally since January 2017. The stock rose as much as 1.6 percent to Rs 7,100.

The scrip has risen 8.7 percent in the past five days and fell 1.9 percent in the past 30 days.

Shares of ACC erased gains and fell as much as 2.8 percent to Rs 1,365.70 after it announced its December quarter results.

Key earnings highlights (Q4CY18, YoY)

• Net profit up 257 percent at Rs 730.5 crore.
• Revenue up 11.5 percent to Rs 3,895.4 crore.
• Ebitda up 10.5 percent to Rs 487.1 crore.
• Margin at 12.5 percent versus 487.1 crore.

Corrects earlier version that misstated Shares rose after results announcement.

CESC (Q3, YoY)

• Stock fell as much as 1.8 percent to Rs 669.70.
• Revenue down 0.4 percent at Rs 1707 crore.
• Net profit up 13.1 percent at Rs 173 crore.
• Ebitda down 35.7 percent at Rs 202 crore.
• Margin at 11.8 percent versus 18.3 percent.
• Regulatory Income at Rs 200 crore versus Rs 69 crore.
• Other Expense at Rs 197 crore versus Rs 178 crore.
• Dividend at Rs 17.5 per share.

BHEL (Q3, YoY)

• Stock fell as much as 11.2 percent to Rs 67.65.
• Revenue up 10.1 percent at Rs 7,336.42 crore.
• Net Profit up 25 percent at Rs 191.95 crore.
• Ebitda down 18% at Rs 218.72 crore.
• Margin at 3.0 percent versus 4.0 percent.

Tata Global Beverages (Q3, YoY)

• Stock fell as much as 6.2 percent to Rs 187.55.
• Revenue up 10.5 percent at Rs 1912.58 crore.
• Net profit down 41 percent at Rs 99.32 crore.
• Ebitda down 17 percent at Rs 196.22 crore.
• Margin at 10.3 percent versus 13.6 percent.

Shares of Symphony Ltd. fell as much as 6.9 percent to Rs 1,130.10 after its quarterly profit in the three months ended December declined 43 percent.

Key Earnings Highlights (Q3, YoY)

• Revenue up 9.6 percent to Rs 240 crore.
• Net profit down 43.1 percent to Rs 37 crore.
• Ebitda down 45.6 percent to Rs 43 crore.
• Margin at 17.9 percent versus 36.1 percent.
• Raw Material Cost up 5.4 times to Rs 81 crore.

Punjab National Bank posted a surprise profit in the three months ended December.

Shares of the lender rose 3.6 percent to Rs 75.80 after the results announcement. That compared 0.9 percent advance in the NSE Nifty PSU Bank Index.

Key Earnings Highlights (Q3, YoY)

• Net Interest Income up 7 percent at Rs 4,290 crore.
• Net profit up 8 percent at Rs 247 crore.
• GNPA at 16.33 percent versus 17.16 percent (QoQ).
• NNPA at 8.22 percent versus 8.90 percent (QoQ).

Shares of Titan extended gains for the second day to hit a new all-time high. The stock rose as much as 3.3 percent to R 1,059.95.

Trading volume was almost quadruple its 20-day average, Bloomberg data showed.

• Indian equity benchmarks traded at day's high on a volatile day.
• The S&P BSE Sensex Index rose as much as 0.29 percent to 36,687.78 and the NSE Nifty 50 Index rose as much as 0.33 percent to 10,948.65.
• The market breadth, however, was tilted in favour of sellers. About 1,036 shares declined and 651 stocks advanced on National Stock Exchange.

Shares of Larsen & Toubro Infotech rose as much as 6.6 percent to Rs 1,870, its highest levels since Oct. 5, 2018.

Trading volume was 4.1 times its 30-day average, Bloomberg data showed. The stock has gained 6.9 pecent so far this year compared to a 1.4 percent advance in the Sensex.

Nifty’s 11,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract plunged 2.9 percent to Rs 118.85. Over 2.45 lakh shares were added to the open interest which stood at over 36.13 lakh shares.

Shares of Axis Bank hit a fresh record high at Rs 728 after rallying over 1 percent intraday.

The stock has risen five times in the last six trading sessions. Its 50-day moving average is trading above the 100-day moving average.

Nikkei India Services Purchasing Managers' Index stood at 52.2 in January from 53.2, clocked in the preceding month.

Shares of Domino’s Pizza operator in India halted a four-day rally and fell as much as 5 percent to Rs 1,326.

The company has been found guilty of not passing on the goods and services tax cut benefit of Rs 41.42 crore on sale of some products and has been directed to deposit the illegal gains with the government, according to a PTI report.

Shares of Whilpool Of India Ltd. fell as much as 13.6 percent, the most since November 2016, to Rs 1,311.55.

International brokerage and research firm Jefferies downgraded the stock to ‘Hold’ from Buy’ and cut its price target to 1,625 from Rs 1,690, implying a potential upside of 7 percent from the current market price.

Trading volume was 34.6 times its 30-day average, Bloomberg data showed. The analysts tracked by Bloomberg had lowered the price target by 4.8 percent in the last three months.

Shares of the oil marketing company fell for the second day ahead of its results announcement. The stock fell a much as 1 percent to Rs 224.25.

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

• Revenue seen down 1 percent to Rs 66,707 crore.
• Ebitda seen down 78 percent to Rs 459 crore
• Margin seen at 0.7 percent versus 3.1 percent.
• Net loss of Rs 1 crore versus net profit of Rs 1,092 crore.
• GRM seen at -$0.52 a barrel versus 4.81 per barrel.

Shares of the world’s largest coal miner fluctuated between gains and losses to trade a little changed at Rs 222.20.

The company approved a buyback of 4.46 crore equity shares or 0.72 percent of outstanding equity shares at Rs 235 per share aggregating up to Rs 1,050 crore, according to its stock exchange filing.

The stock traded at 8.5 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the wireless telecom operator fell for the second day and declined as much as 4.5 percent to Rs 292.85.

Moody’s Investor Service downgraded the company on concern that cash-flow generation at India’s second largest telecom operator will remain weak for several quarters to come. (Read the full story here)

Trading volume was almost triple its 20-day average, Bloomberg data showed. The stock has declined 27 percent in the past 12 months, compared to a 4.3 percent gain in the Sensex.

Indian equity benchmarks fluctuated between gains and losses in the opening trade after rallying in the last three trading sessions.

The S&P BSE Sensex Index rose 0.1 percent to 36,632 as of 9:18 a.m. and the NSE Nifty 50 Index rose 0.1 percent to 10,923.75.

Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Media Index’s 0.5 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.17 percent.

The Indian rupee opened marginally higher against the U.S. dollar after declining for three days. The home currency apreciated 0.15 percent intraday to 71.69 against the greenback. The investors will watch out for overnight and seven-day reverse-repo auctions by the RBI today and 13-day term repo auction.

Sovereign bonds are likely to remain under pressure on concerns of heavy supply. Government announced yesterday another 360 billion rupees of debt sale in March.

Bond investors will also factor in fiscal deficit numbers released yesterday. Budget shortfall in the first 9 months of current fiscal stood at 110 percent of the revised estimate, raising questions about further slippage.

Yield on the most-traded 2028 sovereign debt climbed six basis points to 7.67 percent, the highest since November, yesterday.

F&O Cues

• Nifty February futures closed trading at 10,937, premium of 15 points.
• Max open interest for February series at 11,000 Call, (open interest at 33.7 lakh shares.)
• Max open interest for February series at 10,700 Put, (open interest at 31.2 lakh shares.)

Stocks In F&O Ban

In Ban:

• IDBI Bank
• DHFL

New in Ban:

• DHFL

Put-Call Ratio

• Nifty PCR at 1.67 versus 1.63.
• Nifty Bank PCR at 1.04 versus 0.8.

Morgan Stanley on Future Retail

• Maintained ‘Overweight’; cut price target to Rs 660 from Rs 745.
• December quarter results: Another steady quarter for the core business.
• Cut estimates to reflect lower operating margins.
• Negatives: longer-than-expected integration of Hypercity acquisition and weak performance of small-format stores in South.
• Promoter equity infusion to fund buyout of operating assets is step in right direction.

CLSA on Future Lifestyle

• Maintained ‘Buy’; hiked price target to Rs 560 from Rs 470.
• Robust same-store sales growth drives earnings beat.
• Aggressive expansion in brand factory continues.
• Strong growth visibility and balance sheet on improving trajectory.

CLSA on Aditya Birla Fashion

• Maintained ‘Buy’; hiked price target to Rs 265 from Rs 240.
• Robust revenue growth drives beat.
• Pantaloons same-store sales growth and margin trend encouraging.
• See multiple growth triggers for Aditya Birla Fashion.

HSBC on JSPL

• Maintained ‘Buy’; cut price target to Rs 180 from Rs 190.
• Better than expected realisations result in strong performance from standalone.
• Delivery on deleveraging is a big positive.
• Robust volume growth, cheap valuations and deleveraging should help stock rerate.

UBS on SRF

• Maintained ‘Buy’ with a price target of Rs 2,400.
• Headline numbers were quite inline, but chemical segment margins disappointed.
• Specialty chemical failed to perform.
• Believe market could react negatively.

On Exide

UBS

• Maintained ‘Buy’ with a price target of Rs 335
• December quarter earnings preview: In line but below consensus estimate.
• Miss in net profit sharper due to higher tax & low other income.
• Expect earnings growth to accelerate as technology investments start paying off.

Nomura

• Maintained ‘Neutral’; cut price target to Rs 236 from Rs 272.
• Stable revenue growth, but margins fail to lift.
• See further risk to margin expansion.
• Believe Exide will continue to face market share pressure as peer expands capacity.

• Container Corporation of India record date for bonus of 1:4
• Odisha Cement price band revised to 20 percent.
• Zee Media Corp, Prabhat Dairy price band revised to 5 percent.

• Amber Enterprises: GMO Emerging Domestic Opportunities Fund sold 3.5 lakh shares or 1.1 percent equity at Rs 680.08 each.

Voltamp Transformers

• Promoter Kunjal Investments Private acquired 1.05 lakh shares (1.04 percent) at Rs 1,002.45 each.
• Nalanda India Fund sold 1.4 lakh shares (1.48 percent) at Rs 1,002.45 each

• GAIL
• Hindustan Petroleum Corporation
• Tech Mahindra

Other Earnings To Watch

• ACC
• Aditya Birla Capital
• Acrysil
• Ador Welding
• Adlabs Entertainment
• AksharChem India
• Apollo Pipes
• Apollo Tyres
• Arshiya Asahi Songwon Colors
• Bharat Heavy Electricals
• Birla Corporation
• Blue Star
• Bombay Dyeing & Mfg Company
• Brigade Enterprises
• Century Plyboards
• CESC
• Dish TV
• DLF
• Fairchem Speciality
• Future Enterprises
• IDFC First Bank
• INOX Leisure
• JBF Industries
• LT Foods
• Mangalore Refinery & Petrochemicals
• Marico
• Prataap Snacks
• Praxis Home Retail
• Punjab National Bank
• Reliance Infrastructure
• RPG Life Sciences
• Singer India
• Sobha
• Suven Life Sciences
• Symphony
• Tata Chemicals
• Tata Global Beverages
• Timken India
• Torrent Power
• Trent
• Trigyn Technologies
• Tube Investments of India
• United Bank of India
• Usha Martin
• V-Mart Retail
• Zenlabs Ethica
• Deccan Gold Mines
• Emami Paper Mills
• HCL Infosystems
• Hitech Corporation
• Jai Corp
• Oswal Greentech
• Saint-Gobain Sekurit
• Snowman Logistics

Earnings Reaction To Watch

Godrej Agrovet (Q3, YoY)

• Revenue up 19.1 percent at Rs 1,454.1 crore.
• Net profit down 17.5 percent at Rs 40.9 crore.
• Ebitda up 4.1 percent at Rs 101 crore.
• Margin at 6.9 percent versus 7.9 percent.
• Exceptional profit of Rs 12 crore.

SRF (Q3, YoY)

• Revenue up 40.6 percent at Rs 1,964 crore.
• Net profit up 26.3 percent at Rs 165.7 crore.
• Ebitda up 42.9 percent at Rs 331 crore.
• Margin at 16.9 percent versus 16.6 percent.
• Other income of Rs 21 crore.
• Declares dividend of Rs 6 per share.

Future Retail (Q3, YoY)

• Revenue up 12.9 percent at Rs 5,301.1 crore.
• Net profit up 10 percent at Rs 201.4 crore.
• Ebitda up 29.3 percent at Rs 277.8 crore.
• Margin at 5.2 percent versus 4.6 percent.

Balrampur Chini Mills (Q3, YoY)

• Revenue down 6 percent at Rs 941 crore.
• Net profit up 97 percent at Rs 120 crore.
• Ebitda up 46 percent at Rs 159.5 crore.
• Margin at 17 percent versus 10.9 percent.

Novartis (Q3, YoY)

• Revenue down 13.1 percent at Rs 135.6 crore.
• Net profit down 31 percent at Rs 12.9 crore.
• Ebitda up 5.9 percent at Rs 12.6 crore.
• Margin at 9.3 percent versus 7.6 percent.
• Provision made for reversal of stock for Rs 9 crore.

NRB Bearing (Q3, YoY)

• Revenue up 17 percent at Rs 242.6 crore.
• Net profit up 25.8 percent at Rs 26.8 crore.
• Ebitda up 5.3 percent at Rs 42 crore.
• Margin at 17.3 percent versus 19.2 percent.
• Reversal of stock at Rs 19 crore versus Rs 7.7 crore.

• Coal India approved a buyback of 4.46 crore equity shares or 0.72 percent of outstanding equity shares at Rs 235 per share aggregating up to Rs 1,050 crore.
• The Telecom Tribunal canceled a Rs 2,000 crore demand on Reliance Communications, upholding the company’s petition against Telecom Department on one-time spectrum charge issue. The tribunal has asked the telecom department to return the bank guarantee of Rs 2,000 crore as per its earlier order passed on July 3 2018.
• HEG’s board approved the appointment of Gulshan Kumar Sakhuja as Chief Financial Officer of the company while group arm-Bhilwara Energy’s Chief Executive Officer OP Ajmera will also become the group CFO.
• Mahindra said that the company will offer pro-active inspection of Rear Axles on its Imperio vehicles manufactured between April to June last year. Inspection to be carried out free of cost and the company also stated that this action is in compliance with SIAMs voluntary code on voluntary recall.
• Future Retail approved allotting four crore convertible share warrants worth Rs 2,000 crore to promoter group ‘Future Coupons’ and issuing NCDs up to Rs 750 crore.
• Moody’s changes Vedanta’s outlook to negative from stable, affirms all ratings.
• IDBI Bank applied for a name change post LIC’s acquisition of majority shareholding. The bank sought approval for name change to LIC IDBI Bank (first preference) or LIC Bank (second preference).
• Bharti Infratel shareholders approved amalgamation of Indus Towers with the company.
• Bharat Financial Inclusion completed its seventh direct assignment transaction of Rs 751.19 crore. With this, the company said direct assignment transactions worth Rs 5,448.4 have been completed in financial year 2019.
• SRF appointed Rahul Jain as CFO with effect from April 1. He will be replacing outgoing CFO Anoop Joshi. It also approved project for manufacture of agrochemical intermediate for Rs 140 crore.
• Dr. Reddy’s Laboratories: Indivior Loses Bid for Rehearing in Suboxone Patent Case. Indivior Plc was rejected by a U.S. appeals court in its effort to prevent Dr. Reddy’s from selling a generic version of Suboxone Film opioid addiction treatment.
• Bharti Airtel: Long-term rating downgraded by one notch to Ba1 from Baa3 by Moody’s

• 10:30 a.m.: Nikkei India Services PMI for January, prior 53.2.
• 10:30 a.m.: Nikkei India Composite PMI for January, prior 53.6.
• Asian markets closed Tuesday: China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Pakistan
• Trump delivers a delayed State of the Union address Tuesday
• On Wednesday, Federal Reserve Chairman Jerome Powell gives his first public comments following the January FOMC meeting and rate decision.
• Central banks in Australia, India and the U.K. set rates this week

• Brent crude halted a four-day rally, ended 0.38 percent to $62.51 per barrel.
• West Texas Intermediate rose 0.3 percent to $54.73 a barrel.
• Gold was stable at $1,311.72 an ounce.

London Metal Exchange

• Aluminium resumed rally after a one-day blip, ended 1.9 percent higher.
• Nickel ended higher for the fifth day, up 4.7 percent.
• Tin halted a four-day rally, ended 0.43 percent lower.
• Zinc ended higher for the fourth day, up 0.86 percent.
• Lead ended higher for the fourth day, up 0.05 percent.
• Copper resumed rally after a one-day blip, ended 1.4 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.19 percent to 10,968.50 as of 8:50 a.m.

Stocks in Asia traded mixed Tuesday, with many markets closed for the Lunar New Year.

Australian shares were poised for their biggest climb in more than two years as financials rallied after the results of a yearlong inquiry into misconduct in the financial services sector published Monday were not as harsh as had been anticipated.

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