Sensex, Nifty End Mixed On A Volatile Day As HDFC’s Losses Offset RIL’s Gains
Catch all the live updates on share prices, index moves, corporate announcements and more from Sensex and Nifty today.
KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty End Mixed On A Volatile Day As HDFC’s Losses Offset RIL’s Gains
Indian stocks ended mixed on a volatile session ahead of the quarterly results announcement of the nation’s two largest firms.
The S&P BSE Sensex rose marginally by 0.03 percent to end at 41,945.37 and the NSE Nifty 50 fell 0.03 percent to close at 12,352. The broader markets represented by the NSE Nifty 500 Index rose 0.09 percent.
The market breadth was tilted in favour of buyers. About 927 stocks advanced and 864 shares declined on National Stock Exchange.
Six out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Bank Index’s 0.83 percent fall. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 1.7 percent.
HCL Tech Hits Record High; RIL Gains, TCS Falls Ahead Of Q3 Results
Shares of HCL Technologies rose as much as 1.4 percent to hit an all-time high at Rs 601.40 ahead of its December quarter results announcement.
Shares of Reliance Industries rose as much as 3.1 percent to Rs 1,584.95, while shares of Tata Consultancy Services fell as much as 1.2 percent to Rs 2,213.
Here are the analysts consensus estimates tracked by Bloomberg:
RIL (Q3, QoQ)
- Revenue seen 6.5 percent higher at Rs 92,803 crore.
- Net profit flat at Rs 9,706 crore versus Rs 9,702 crore.
- Ebitda seen up 6.9 percent at Rs 14,608 crore.
- Margin seen at 15.7 percent versus 15.7 percent.
- GRMs seen up 1.1 percent at $9.5 per barrel.
Reliance Jio (Q3, QoQ)
- Revenue seen 11.1 percent higher at Rs 13,722 crore.
- Net Profit seen 43 percent up to Rs 1,419 crore.
- Ebitda seen 16.3 percent higher at Rs 5,978 crore.
- Margin at 43.6 percent versus 41.6 percent.
- ARPU seen 3.3 percent higher at Rs 124.
TCS (Q3, QoQ)
- Revenue seen 2.2 percent higher at Rs 39,836 crore.
- Profit seen 1.8 percent higher at Rs 8,189 crore.
- EBIT seen up 4.3 percent higher at Rs 9,760 crore.
- EBIT margin seen at 24.5 percent versus 24 percent.
HCL Tech (Q3, QoQ)
- Revenue seen 3.6 percent higher Rs 18,155 crore.
- EBIT seen 1.3 percent higher at Rs 3,542 crore.
- EBIT margin seen at 19.5 percent versus 20 percent.
- Net profit seen 4 percent higher at Rs 2,758 crore.
Fab Four Stocks Of The Day
Garware Technical Fibres
- Stock rose as much as 12.9 percent to hit an all-time high at Rs 1,475.
- Shares extended gains for the fifth consecutive trading session.
Torrent Pharma
- Stock rose as much as 5.4 percent to Rs 2,028.
- Fresh longs seen with high open interest of 47.3 percent.
- Trading volume was six times its 20day average.
Music Broadcast
- Stock rose as much as 10.2 percent to Rs 29.20.
- To consider bonus issue on Jan. 27
Piramal Enterprises
- Stock rose as much as 7 percent to Rs 1,655.
- To sell healthcare insights and analytics business to U.S.-based Clarivate Analytics for $950 million
IndiaMART InterMESH Surges The Most In Nearly A Month
Shares of IndiaMART InterMESH rose as much as 7.8 percent, the most since Dec. 23, 2019, to Rs 2,165.
Of the shares traded, 43 percent were at the ask price and 43 percent were at the bid, according to Bloomberg data.
Pharma Shares Advance As Piramal Enterprises, Dr. Reddy’s Laboratories Lead
The NSE Nifty Pharma Index rose nearly 2 percent, led by the advance in Piramal Enterprises and Dr. Reddy’s Laboratories.
Market Check: Sensex, Nifty Head For A Volatile Close
Indian stocks are headed for a volatile close.
The S&P BSE Sensex rose 0.12 percent to 41,980 and the NSE Nifty 50 traded little changed at 12,357. The broader markets represented by the NSE Nifty 500 index rose 0.13 percent.
Global Markets Update: Stocks Advance Along With U.S. Futures
Stocks marched higher alongside U.S. equity futures on Friday as investors mulled earnings and economic data while maintaining the momentum that’s put global indexes at records highs this week. Treasuries slipped.
- The Stoxx Europe 600 Index increased 0.7 percent.
- Futures on the S&P 500 Index gained 0.2 percent.
- Nasdaq 100 Index futures rose 0.2 percent.
- The MSCI Asia Pacific Index climbed 0.4 percent.
Get your daily fix of global markets here.
Source: Bloomberg
Stocks Moving On Heavy Volumes
Rallis India
- Stock rose as much as 17.9 percent to Rs 227.60.
- Trading volume was almost 30 times its 20-day average.
TTK Prestige
- Stock rose as much as 2.3 percent to Rs 6,115.
- Trading volume was 14 times its 20-day average.
Gujarat Fluorochemicals
- Stock rose as much as 3.9 percent to Rs 592.05.
- Trading volume was more than 13 times its 20-day average.
WABCO India
- Stock fell as much as 2.1 percent to Rs 6,370.
- Trading volume was more than 12 times its 20-day average.
Emami Jumps The Most In Three Months
Shares of Emami extended gains for the second consecutive trading session. The stock rose as much as 8.8 percent to Rs 349.80.
Trading volume was more than four times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Piramal Enterprises Surges After Stake Divestment In Unit
Shares of the conglomerate jumped 6.3 percent intraday to Rs 1,644 each.
Piramal Enterprises entered into a definitive agreement with Clarivate Analytics to sell its data and analytics services unit Decision Resources Group for $950 million, according to an exchange filing.
The stock traded 16 times its estimated earnings per share for the coming year, according to Bloomberg data.
Market Check: Sensex, Nifty Subdued
Indian stocks erased most of the gains and traded little changed.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 41,942 and 12,347 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.
Sectoral Check: Nifty Private Bank Index Worst Performer
Eight out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Private Bank Index’s 0.81 percent fall. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 0.6 percent.
Bloomberg Exclusive: India Said To Be Open To Telecom Firms Plea For Relief On Dues
India is open to hearing wireless carriers’ suggestions to help ease payment of $13 billion in overdue fees, Bloomberg reported quoting people with knowledge of the matter.
- Stripping out interest from the AGR dues or paying the amount in tranches are some ideas that the government can discuss.
- An independent panel can examine such requests provided the companies commit to pay some amount immediately.
Source: Government Official With Knowledge Of The Matter
Shares of Vodafone Idea pared losses after the Bloomberg report.
F&O Check: Nifty 12,400 Call Option Premium Jumps 20 percent
Nifty’s 12,400 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract, which is set to expire on Jan. 23, rose 19.7 percent to Rs 54.05. About 5.76 lakh shares were added to the open interest which stood at over 17.48 lakh shares.
Market Check: Sensex, Nifty Gain Momentum
Indian stocks gained momentum after fluctuating between gains and losses in the opening trade.
The S&P BSE rose 0.18 percent to trade above 42,000 and the NSE Nifty 50 rose 0.09 percent 12,366. The broader markets represented by the NSE Nifty 500 Index rose 0.12 percent.
Stocks Reacting To Results Announcement
Cyient (Q3, QoQ)
- Stock swung from a gain of as much as 2.2 percent to fall as much as 1.7 percent.
- Dollar revenue fell 5.5 percent to $165.1 million.
- Revenue fell 4.6 percent to Rs 1,105.9 crore. (Estimate Rs 1,120 crore)
- Net profit rose 9.9 percent to Rs 108.3 crore. (Estimate Rs 95.9 crore)
- EBIT fell 5.6 percent to Rs 105.3 crore. (Estimate Rs 105 crore)
- Margin was at 9.5 percent versus 9.6 percent.
Tata Metaliks (Q3, YoY)
- Stock rose as much as 2.7 percent to Rs 682.
- Revenue fell 5.1 percent to Rs 518.6 crore.
- Net profit rose 15.9 percent to Rs 45.9 crore.
- Ebitda rose 4.7 percent to Rs 78.2 crore.
- Margin was at 15.1 percent versus 13.7 percent.
Hathway Cable & Datacom (Q3, YoY)
- Stock rose as much as 8.9 percent to Rs 23.90.
- Revenue rose 12.3 percent to Rs 450.8 crore.
- Net profit was at Rs 67.2 crore versus net loss of Rs 57.9 crore.
- Ebitda rose 47.2 percent to Rs 116.5 crore.
- Margin was at 25.8 percent versus 19.7 percent.
- Other Income rose 4.2 times to Rs 61.7 crore.
Rallis India (Q3, YoY)
- Stock rose as much as 15 percent to Rs 222.
- Revenue rose 27.8 percent to Rs 533.6 crore.
- Net profit rose 2.7 times to Rs 38.1 crore.
- Ebtda rose 2 times to Rs 55.8 crore.
- Margin was at 10.5 percent versus 6.6 percent.
South Indian Bank (Q3, YoY)
- Stock fell as much as 3.2 percent to Rs 10.70.
- Net interest income rose 15.8 percent to Rs 601.8 crore.
- Net profit rose 7.9 percent to Rs 90.5 crore versus Rs 83.9 crore.
- Provisions at Rs 260.9 crore versus Rs 203.1 crore.
- GNPA at 4.96 percent versus 4.92 percent.
- NNPA at 3.44 percent versus 3.48 percent.
Karnataka Bank (Q3, YoY)
- Stock fell as much as 5.7 percent to Rs 74.
- Net interest income rose 4.1 percent to Rs 507.8 crore.
- Net profit fell 12.3 percent to Rs 123.1 crore.
- Provisions at Rs 314.7 crore versus Rs 209 crore.
- GNPA at 4.99 percent versus 4.78 percent QoQ.
- NNPA at 3.75 percent versus 3.48 percent QoQ.
Dishman Carbogen Falls Amid Buyback Plans
Shares of Dishman Carbogen fell as much as 5 percent to Rs 84.25.
The company’s board approved share buyback up to a maximum of 48 lakh shares or 2.97 percent equity at Rs 150 apiece, aggregating to Rs 72 crore.
The buyback price is at a premium of 69 percent to closing prices as Jan. 16. Post the share buyback, the promoters stake expected to increase to 63.28 percent from 61.4 percent, while public shareholders stake to fall to 36.72 percent from 38.6 percent.
The scrip traded at 6.4 times its estimated earnings per share for the coming year, according to Bloomberg data.
Vodafone Idea Drops The Most On Record; Bharti Airtel Surges After Supreme Court Order
Shares of Vodafone idea fell as much as 39.2 percent, the most on record, to Rs 3.65.
Besides, Shares of Bharti Airtel rose as much as 5.2 percent to Rs 498.75, while shares of Bharti Infratel and Grasim Industries fell 13.5 percent and 6 percent respectively intraday.
That came after the Supreme Court dismissed petitions of telecom operators seeking review of the definition of ‘adjusted gross revenue’ that makes them liable to pay thousands of crores in pending dues.
Vodafone Idea said it is exploring further options, including the filing of a curative petition on the AGR Matter.
Bharti Airtel said that long-standing disputed on AGR are bonafide and genuine and the company is evaluating filing a curative petition. The telcom operator also said in a media statement that the telecom industry continues to face severe financial stress and the court order could further erode the viability of the industry.
Here’s what analysts had to say after the Supreme Court order:
Morgan Stanley
- Airtel’s recent fundraising gives it the liquidity to meet AGR liability, it will be critical to see the way forward for Vodafone Idea.
- There is a possibility that the telecom industry could further consolidate into two players.
Edelweiss
- Odds of relief after filing a curative petition is low.
- The onus of ensuring the market structure does not move to a duopoly lies with the government.
- Bharti Infratel too cannot escape the repercussions of the potential change in market structure.
- Maintain a positive stance on Airtel and Jio given their ability to fund liabilities and gain market share.
UBS
- The decision is clearly negative for Vodafone Idea as the company’s faces meaningfully large liability.
- Will closely monitor the outcome of the curative petition if any.
IIFL
- Chances of a relief from a curative petition before the Jan. 23 deadline look remote.
- Government is likely to spread out payment over a long period to avoid pushing Vodafone Idea into NCLT.
- Spread out payments plus tariff increases are a feasible combination.
Opening Bell: Sensex, Nifty Swing In Open
Indian stocks fluctuated between gains and losses in the opening trade.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 41,942 and 12,347 respectively. The broader markets represented by the NSE Nifty 500 Index 0.09 percent.
The market breadth was tilted in favour of buyers. About 854 stocks advanced and 660 shares declined on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.4 percent fall. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 0.26 percent.
Your Complete F&O Trade Setup
Index Futures
- Nifty January futures closed at 12,374, premium of 18.8 points versus 34.7 points.
- Nifty January futures open interest up 2.5 percent, adds 3.1 lakh shares in open interest.
- Nifty Bank January futures closed at 31,935.7, premium of 81.8 points versus 118.9 points.
- Nifty Bank January futures open interest down 4 percent, sheds 5,38,000 shares in open interest.
Options
- Nifty PCR at 1.51 versus 1.56 (across all series).
Nifty Weekly Expiry: Jan. 16
- Max open interest on call side at 12,400 (11.7 lakh shares).
- Max open interest on put side at 12,300 (17 lakh shares).
- Open interest addition seen at 11,500P (+10.1 lakh shares), 12,300P (+9.7 lakh shares), 12,400C (+6.7 lakh shares).
Nifty Monthly Expiry: Jan. 30
- Max open interest on call side at 12,500 (30.3 lakh shares).
- Max open interest on put side at 12,000 (42 lakh shares).
BQ Heads-Up: Who's Meeting Whom
- Great Eastern Shipping to meet Birla Sun Life on Jan. 17.
Trading Tweaks: Ashima, Inditrade Capital, Century Extrusions, Century Extrusions, Centrum Capital
- Century Extrusions, Vipul, price band revised to 10 percent.
- Websol Energy System, Shyam Century Ferrous price band revised to 5 percent.
- Indiabulls Integrated Services, Mishtann Foods to move into ASM Framework.
- Ashima, Inditrade Capital, Century Extrusions, Inox Wind to move into short term ASM Framework.
- Centrum Capital, Saurashtra Cement to move out of short term ASM Framework.
Money Market Update: Rupee Opens Lower
The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.09 percent to 71 against the greenback.
Pre-Market Check: Sensex, Nifty To Open Lower
Indian stocks are set to open lower.
The S&P BSE Sensex fell 0.05 percent to 41,910 and the NSE Nifty 50 fell 0.3 percent to 12,318.
Q3 Earnings Corner: Blue Dart, Cyient, Hathway Cable, HCL Tech, ICICI Lombard General Insurance, RIL, TCS
Nifty Earnings To Watch
- HCL Tech
- Reliance Industries
- TCS
Other Earnings To Watch
- Blue Dart Express
- Fertilizers and Chemicals Travancore
- ICICI Lombard General Insurance
- L&T Finance Holdings
- L&T Technology Services
Earnings Reaction To Watch
Cyient (Q3, QoQ)
- Dollar revenue fell 5.5 percent to $165.1 million.
- Revenue fell 4.6 percent to Rs 1,105.9 crore. (Estimate Rs 1,120 crore)
- Net profit rose 9.9 percent to Rs 108.3 crore. (Estimate Rs 95.9 crore)
- EBIT fell 5.6 percent to Rs 105.3 crore. (Estimate Rs 105 crore)
- Margin was at 9.5 percent versus 9.6 percent.
Tata Metaliks (Q3, YoY)
- Revenue fell 5.1 percent to Rs 518.6 crore.
- Net profit rose 15.9 percent to Rs 45.9 crore.
- Ebitda rose 4.7 percent to Rs 78.2 crore.
- Margin was at 15.1 percent versus 13.7 percent.
Hathway Cable & Datacom (Q3, YoY)
- Revenue rose 12.3 percent to Rs 450.8 crore.
- Net profit was at Rs 67.2 crore versus net loss of Rs 57.9 crore.
- Ebitda rose 47.2 percent to Rs 116.5 crore.
- Margin was at 25.8 percent versus 19.7 percent.
- Other Income rose 4.2 times to Rs 61.7 crore.
Rallis India (Q3, YoY)
- Revenue rose 27.8 percent to Rs 533.6 crore.
- Net profit rose 2.7 times to Rs 38.1 crore.
- Ebtda rose 2 times to Rs 55.8 crore.
- Margin was at 10.5 percent versus 6.6 percent.
South Indian Bank (Q3, YoY)
- Net interest income rose 15.8 percent to Rs 601.8 crore.
- Net profit rose 7.9 percent to Rs 90.5 crore versus Rs 83.9 crore.
- Provisions at Rs 260.9 crore versus Rs 203.1 crore.
- GNPA at 4.96 percent versus 4.92 percent.
- NNPA at 3.44 percent versus 3.48 percent.
Karnataka Bank (Q3, YoY)
- Net interest income rose 4.1 percent to Rs 507.8 crore.
- Net profit fell 12.3 percent to Rs 123.1 crore.
- Provisions at Rs 314.7 crore versus Rs 209 crore.
- GNPA at 4.99 percent versus 4.78 percent QoQ.
- NNPA at 3.75 percent versus 3.48 percent QoQ.
TRAI Subscriber Data For November 2019
- Reliance Jio lost 23.8 lakh active subscriber base – first decline since it began operations.
- Bharti Airtel added 37.4 lakh active subscribers – a second consecutive month of net addition.
- Vodafone Idea lost 30.6 lakh active subscribers – 19th consecutive month of loss.
- Bharti Airtel added more broadband users than Jio. Airtel added 70.6 lakh broadband users – most in the last 10 months.
Stocks To Watch: Bharti AIrtel, Dishman Carbogen, Music Broadcast, Vodafone Idea
- Bharti Airtel, Vodafone Idea and Reliance Industries: The Supreme Court dismissed petitions of telecom operators seeking review of the definition of ‘adjusted gross revenue’ that makes them liable to pay thousands of crores in pending dues.
- Bharti Airtel said that long-standing disputed on AGR are bonafide and genuine and the company is evaluating filing a curative petition. The telco also stated that the telecom industry continues to face severe financial stress and the court order could further erode the viability of the industry, in a media statement.
- Vodafone Idea is exploring further options, including the filing of a curative petition on the AGR Matter.
- Zee Group Stocks: The Securities and Exchange Board of India imposed a fine totalling Rs 9 lakh on Zee Media Corporation and its promoter entity 25FPS Media for shareholding disclosure lapses, according to Bloomberg report.
- Yes Bank: Moody’s placed the lender’s rating under review, according to Bloomberg report.
- Dishman Carbogen Amcis: Board approved share buyback up to a maximum of 48 lakh shares or 2.97 percent equity at Rs 150 apiece, aggregating to Rs 72 crore. The buyback price is at a premium of 69 percent to closing prices as Jan. 16. Post the share buyback, the promoters stake expected to increase to 63.28 percent from 61.4 percent, while public shareholders stake to fall to 36.72 percent from 38.6 percent.
- Rallis said that production is expected to commence for Dahej chemical plant in 2020-21. Metribuzin Phase II expansion of 500 MTPA is expected to be commercialised by February. The board also approved setting rose of R&D Facility in Bengaluru.
- UCO Bank: Board approved a proposal for a preferential issue to the Government against a capital infusion of Rs 2142 crore. EGM to seek shareholders nod on Feb. 14 for the above proposal.
- Wipro has announced a $150 million fund to invest in early to mid-stage companies.
- CEAT will consider issuance of non-convertible debentures on Jan. 22.
- Music Broadcast will consider bonus issue on Jan. 27.
- Shriram Transport Finance completed allotment senior secured notes worth $500 million.
- Premier Explosives stated that there was a fire incident on Jan. 15 at company's Peddakandukuru Factory. The fire has resulted in damage to building and equipment in one of the curing facilities.
- Metropolis Healthcare acquired 51 percent stake in Shraddha Diagnostic Centre in Gujarat for Rs 9.36 crore.
- Unitech clarified that it has not received any notice from the office of Enforcement Directorate, regarding the alleged siphoning of Rs 1,600 crore from the company’s promoters.
- HIL: Board approved the sale of company’s calcium silicate insulation products division operated under the brand "HYSIL" to Calderys India Refractories through a slump sale for Rs 80 crore.
- South Indian Bank: Board approved raising rose to Rs 500 crore via bonds.
- CG Power: Belgium’s Commercial Court has appointed to two interim directors on the Board of the company’s two arms in Belgium to act as their provisional administrators.
- Nilkamal’s Sri Lankan arm has repurchased equity shares from other existing shareholders. The company’s stake in the Sri Lankan arm has increased to 96.28 percent from 76 percent.
Global Cues: U.S. Stocks Hit Record Highs
- All three main U.S. stock benchmarks surged to all-time highs after setting multiple records earlier this week, with technology and financial shares leading the surge.
- Oil posted its largest gain in almost two weeks, swept along in a broader equities rally as the preliminary U.S.-China trade truce and an accord between America, Canada and Mexico fueled optimism about economic growth.
Get your daily fix of global markets here.
SGX Nifty Suggests Tepid Start; Asian Stocks Edge Higher
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.06 percent to 12,365 as of 8:20 a.m.
Asian stocks edged up Friday, with the global record-setting rally showing little sign of letting up following signs of strong American consumer demand and an improving Chinese economy.
Shares rose modestly in Tokyo, Seoul and Sydney. Equities ticked up in Shanghai and Hong Kong as data showed Chinese industrial output topped estimates. Futures on the S&P 500 were flat.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.