Sensex, Nifty Rally To Recoup Budget-Day Losses

Indian equities gained for the second straight trading session, paring losses clocked on the Budget day.

The S&P BSE Sensex and the NSE Nifty 50 rose 2.3 percent and 2.32 percent, respectively, to end at 40,789.38 and 11,979.65 on Tuesday. The benchmarks—that had posted their worst Budget day performance in 11 years—gained more than 2.7 percent in two days.

The broader markets represented by the NSE Nifty 500 Index advanced 2.10 percent on Tuesday.

The rebound witnessed in markets is ‘purely’ cyclical as markets bottomed out last week on account of lacklustre budget and coronavirus scare. That’s according to Chakri Lokapriya, Managing Director, TCG Asset Management.

“The rebound over last two days reflects the view that India is at a cyclical economic bottom and markets being forward looking they are beginning to stabilize,” Lokapriya told BloombergQuint.

The market breadth was tilted in favour of buyers. About 1,249 stocks advanced and 533 shares declined on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Metal Index’s 3.3 percent gain.

Shares of Adani Ports and Special Economic Zone rose as much as 2.4 percent to Rs 376 after announcing December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 2.8 percent to Rs 2,902 crore.
• Net profit down 4 percent to Rs ,1352 crore.
• Ebitda up 0.5 percent to 1,853 crore.
• Margin at 63.85 percent versus 65.28 percent.

Affle India

• Stock rose as much as 4.6 percent to Rs 1,835.
• Revenue rose 27.4 percent to Rs 94.5 crore
• Net profit rose 31.9 percent to Rs 21.5 crore
• Ebit rose 18.1 percent to Rs 24.1 crore
• Margin rose 25.5 percent to 27.5 percent
• India segment revenue rose 53 percent to Rs 53 crore
• International segment revenue rose 4 percent to Rs 43.3 crore

Chalet Hotels

• Stock rose as much as 4.4 percent to Rs 4.4 percent to Rs 328.95.
• Acquires 100 percent stake in Belaire Hotels for Rs 119.3 crore and 100 percent stake in Seapearl Hotels for Rs 57.5 crore.

Hero MotoCorp

• Stock rose as much as 4.6 percent to Rs 2,484.60.
• Positive on lower crude oil prices.

Hindalco

• Stock rose as much as 4 percent to Rs 189.15.
• Shares snap four-day losing streak.
• Traders accumulate fresh longs, February futures OI up 3 percent.

Shares of IRCTC rose as much as 10.6 percent to hit an all-time high at Rs 1.383.90.

“Competition Commission of India has absolved Indian Railways and its arm IRCTC Ltd. of allegations of unfair market practices,” according to a PTI report.

“The order came after the regulator in November 2018, ordered a detailed probe into the allegations of abuse of dominant market position against Ministry of Railways and IRCTC for charging higher price than actual base fare on the sale of e-tickets,” the report said.

Shares of the Zee Group companies declined in today’s trade.

Thyrocare Technologies

• Stock rose as much as 20 percent to Rs 723.
• Trading volume was almost 50 times its 20-day average.

Indian Energy Exchange

• Stock rose as much as 10.3 percent to Rs 170.80.
• Trading volume was almost 40 times its 20-day average.

Manappuram Finance

• Stock fell as much as 7 percent to Rs 183.55.
• Trading volume was more than 11 times its 20-day average.

Bajaj Holdings & Investments

• Stock rose as much as 4.2 percent to Rs 3,751.05.
• Trading volume was more than 12 times its 20-day average.

Shares of Titan rose as much as 6.9 percent to Rs 1,268 after the company announced December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 9.4 percent to Rs 6,206 crore (Estimate: Rs 6,251 crore)
• Net profit up 13 percent to Rs 470 crore (Estimate: Rs 506 crore)
• Ebitda up 25.7 percent to Rs 735.2 crore (Estimate: Rs 719 crore)
• Margin at 11.8 percent versus 10.3 percent. (Estimate: 13 percent)

Shares of Bajaj Electricals fell as much as 1.4 percent to Rs 370.15 after announcing December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue down 40.7 percent to Rs 1,283.9 crore.
• Net profit down 83.8 percent to Rs 9.9 crore.
• Ebitda down 50.1 percent to Rs 67.4 crore.
• Margin at 5.2 percent versus 6.2 percent.
• Consumer segment revenue up 13 percent to Rs 860.2 crore.
• EPC segment revenue down 70 percent at Rs 423.5 crore.

Shares of Punjab National Bank rose 1.9 percent to Rs 58.40 after the company announced December quarter results.

Key Earnings Highlights (Q3, YoY)

• Net interest income up 2 percent to Rs 4,355.1 crore.
• Net loss at Rs 492.28 crore versus profit of Rs 246.51 crore.
• Provisions up 41.6 percent to Rs 4,146.04 crore. (QoQ)
• Gross NPAs at 16.3 percent versus 16.76 percent. (QoQ)
• Net NPAs at 7.18 percent versus 7.65 percent. (QoQ)

Indian equities gained for the second straight trading session, paring losses clocked on the Budget day.

The S&P BSE Sensex and the NSE Nifty 50 rose as much as 2.34 percent and 2.38 percent, respectively, at 40,807 and 11,986 on Tuesday. The benchmarks—that had posted their worst Budget day performance in 11 years—gained more than 2.5 percent in two days.

Here are the stocks leading the charge:

The rebound witnessed in markets is ‘purely’ cyclical as markets bottomed out last week on account of lacklustre budget and coronavirus scare. That’s according to Chakri Lokapriya, Managing Director, TCG Asset Management.

“The rebound over last two days reflects the view that India is at a cyclical economic bottom and markets being forward looking they are beginning to stabilize,” Lokapriya told BloombergQuint.

Shares of Piramal Enterprises rose as much as 6.8 percent, the most since Jan. 17, 2020, to Rs 1,429 after the company announced its quarterly results for the three months ended December.

Key Earnings Highlights (Q3, YoY)

• Revenue up 9.1 percent to Rs 3,805.67 crore
• Net profit up 20 percent to Rs 724.95 crore
• Ebitda up 13 percent to Rs 2,295.76 crore
• Margin at 60.3 percent versus 58.1 percent.

About 14.1 lakh shares of Lemon Tree Hotels changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Asian equities rose with U.S. futures and China’s stocks stabilized after Monday’s slide as investors gauge efforts to contain the coronavirus and awaited potential responses from policymakers.

• The MSCI Asia Pacific Index rose 1.2 percent.
• Topix index rose 0.7 percent at the close.
• Australia’s S&P/ASX 200 Index rose 0.4 percent.
• South Korea’s Kospi gauge rallied 1.8 percent.
• Hong Kong’s Hang Seng Index rose 0.9 percent.
• Shanghai Composite Index rose 1.4 percent after dropping as much as 2.2 percent.
• S&P 500 futures rose 0.6 percent.
• Euro Stoxx 50 contracts rose 0.4 percent.

Get your daily fix of global markets here.
Source: Bloomberg

The Indian rupee extended morning gains to trade at day’s high.

The home currency appreciated as much as 0.36 percent to 71.11 against the U.S. dollar. The local legal tender had appreciated 0.17 percent in the opening trade against the greenback.

Indian equities advanced for the second consecutive trading session and traded at day’s high.

The S&P BSE Sensex rose as much as 2.08 percent to 40,702.22 and the NSE Nifty 50 rose as much as 2.09 percent to 11,953. The broader markets represented by the NSE Nifty 500 Index rose as much as 1.9 percent.

Corrects earlier headline that misstated Nifty was above 12,950

Shares of Sun Pharmaceutical Industries rose as much s 4.6 percent to Rs 185.40 after the company’s U.S. subsidiary Taro Pharma announced December quarter results.

Key Earnings Highlights (Taro Pharma) (Q3, YoY)

• Revenue down 16 percent to $147.7 million.
• Net profit down 27 percent to $67.7 million.
• Ebitda down 16 percent to $58.2 million.
• Margin at 39.4 percent versus 44.7 percent.

Shares of Bajaj Auto extended declines to trade at day’s low. The stock fell as much as 3.2 percent to Rs 3,180.

That came after the two-wheeler maker sold a total of 3,94,473 units last month, a fall of 3 percent from January 2019, according to its stock exchange filing.

Key Highlights (YoY):

• Domestic sale of motorcyles fell 22 percent to 1,57,796 units.
• Export of motorcycles rose 19 percent to 1,74,546 units.
• Domestic sale of commercial vehicles rose 25 percent to 35,076 units.
• Export of commercial vehicles fell 5 percent to 27,055 units.
• Total domestic sales fell 17 percent to 1,92,872 units.
• Total exports rose 15 percent to 2,01,601 units.

Indian equities advanced for the second consecutive trading session and traded at day’s high.

The S&P BSE Sensex rose as much as 1.92 percent to 40,638.71 and the NSE Nifty 50 rose as much as 1.91 percent to 11,931.30. The broader markets represented by the NSE Nifty 500 Index rose as much as 1.74 percent.

About 10 lakh shares of Yes Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Aegis Logistics resumed gains after a one-day blip. The stock rose as much as 14 percent, the most since February 2017, to Rs 234.50, the highest level since May 2019.

Trading volume was more than six times its 20-day average, Bloomberg data showed. The scrip returned 11 percent in the past five days and advanced 20 percent in the past 30 days.

Shares of Honeywell Automation India rose as much a 14.9 percent, the most since December 2017, to hit an all-time high at Rs 31,890 after the company announced December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 11.0 percent to Rs 901.2 crore.
• Net profit up 69 percent to Rs 144.74 crore.
• Ebitda up 213 percent to Rs 369.76 crore.
• Margin at 41.0 percent versus 14.6 percent.

All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Financial Services Index’s 2.3 percent gain.

Indian equities advanced for the second consecutive trading session and traded at day’s high.

The S&P BSE Sensex rose as much as 1.64 percent to 40,524.70 and the NSE Nifty 50 rose as much as 1.6 percent to 11,895.70. The broader markets represented by the NSE Nifty 500 Index rose as much as 1.45 percent.

About 35 lakh shares of ICICI Bank changed hands in two large trades, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the private lender rose as much as 2.8 percent to Rs 529.90

Nifty’s 11,800 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire today, rose 213.90 percent to Rs 86.95. About 1.56 lakh shares were removed from the open interest which stood at over 21.96 lakh shares.

Indian equities advanced for the second consecutive trading session, led by the gains in Reliance Industries Ltd. and HDFC Bank Ltd.

The S&P BSE Sensex rose as much as 1.16 percent to 40,336.22 and the NSE Nifty 50 rose as much as 1.13 percent to 11,840.35. The broader markets represented by the NSE Nifty 500 Index rose as much as 1.1 percent.

Deepak Nitrite (Q3, YoY)

• Stock rose as much as 3.3 percent to Rs 423.
• Revenue rose 46.1 percent to Rs 1,119.9 crore
• Net profit rose 3.9 times to Rs 156.7 crore
• Ebitda rose 2.4 times to Rs 258.3 crore
• Margin stood at 23.1 percent versus 14 percent
• Raw material cost as percentage of sales at 58 percent
• Phenolic segment revenue rose 70 percent to Rs 535.1 crore
• Basic chemical segment revenue rose 15 percent to Rs 252.7 crore
• Fine & Speciality chemical segment revenue rose 17 percent to Rs 173.2 crore

GlaxoSmithKline Pharmaceuticals (Q3, YoY)

• Stock fell as much as 13.4 percent to Rs 1,522.
• Revenue fell 5.7 percent to Rs 778.6 crore
• Net loss stood at Rs 661.2 crore versus net profit at Rs 113.7 crore
• Ebitda fell 9.3 percent to Rs 124.4 crore
• Margin stood at 16 percent versus 16.6 percent

Shriram Transport Finance (Q3, YoY)

• Stock rose as much as 12.9 percent to Rs 1,114.95.
• Net profit rose 38.1 percent to Rs 882.2 crore
• Net interest income fell 1 percent to Rs 2,014.4 crore
• Impairment cost fell 30 percent to Rs 444.4 crore
• Assets under management rose 4.93 percent to Rs 108,931.4 crore

Affle (India) (Q3, YoY)

• Stock rose as much as 4.6 percen to Rs 1,835.
• Revenue rose 27.4 percent to Rs 94.5 crore
• Net profit rose 31.9 percent to Rs 21.5 crore
• Ebit rose 18.1 percent to Rs 24.1 crore
• Margin rose 25.5 percent to 27.5 percent
• India segment revenue rose 53 percent to Rs 53 crore
• International segment revenue rose 4 percent to Rs 43.3 crore

AstraZeneca Pharma (Q3, YoY)

• Stock fell as much as 2.4 percent to Rs 2,550.
• Revenue rose 4 percent to Rs 223.9 crore
• Net profit fell 8.2 percent to Rs 26.7 crore
• Ebitda fell 9.8 percent to Rs 36.9 crore
• Margin stood at 16.5 percent versus 19 percent

SRF (Q3, YoY)

• Stock fell as much as 2.9 percent to Rs 3,678.
• Revenue up 2.3 percent to Rs 1,850.5 crore
• Net profit up 2.1 times to Rs 343 crore
• Ebitda rose 25.1 percent to Rs 390.2 crore
• Margin stood at 21.1 percent versus 17.2 percent
• Tax reversal of Rs 66 crore aided bottom line numbers
• Raw material cost as percent of sales stood at 50.4 percent versus 56.7 percent
• Technical textiles business revenue fell 26 percent to Rs 335.7 crore
• Chemical business revenue rose 39 percent at Rs 811.9 crore
• Packaging films business revenue fell 9 percent to Rs 638.2 crore

Ujjivan Financial Services (Q3, YoY)

• Stock rose as much as 2.4 percent to Rs 383.95.
• Net interest income rose 46.1 percent to Rs 445.9 crore
• Net profit rose 2.3 times to Rs 72 crore

Shares of Bajaj Auto fell as much as 1.2 percent to Rs 3,245.

That came after the two-wheeler maker sold a total of 3,94,473 units last month, a fall of 3 percent from January 2019, according to its stock exchange filing.

Key Highlights (YoY):

• Domestic sale of motorcyles fell 22 percent to 1,57,796 units.
• Export of motorcycles rose 19 percent to 1,74,546 units.
• Domestic sale of commercial vehicles rose 25 percent to 35,076 units.
• Export of commercial vehicles fell 5 percent to 27,055 units.
• Total domestic sales fell 17 percent to 1,92,872 units.
• Total exports rose 15 percent to 2,01,601 units.

Shares of Tata Consultancy Services rose as much as 1.6 percent to Rs 2,136.70.

The country’s largest software developer has expanded partnership with Walgreens Boots Alliance for digital solutions. The 10-year deal is valued at $1.5 billion. Walgreens Boots Alliance owns pharma manufacturing, wholesale and distribution companies.

The stock traded at 24 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Manappuram Finance fell as much as 5.4 percent, the most in over four months, to Rs 174.10.

About 3.77 crore shares or 4.5 percent equity of the company changed hands in five large trades, Bloomberg data showed.

While buyers and sellers were not known immediately, Baring India Private Equity Fund II had planned to offer 4.2 crore shares (5 percent) of the company in an accelerated book-building with a floor price of Rs 172 per share, which is at a discount of 6.57 percent to the last closing prices.

Baring Fund has 8.76 percent stake in the company as per latest exchange filings, according to Bloomberg report.

Indian indices opened higher, extending gains for the second consecutive trading session.

The S&P BSE Sensex rose nearly 1 percent to 40,251 and the NSE Nifty 50 rose 0.87 percent to 11,810. The broader markets represented by the NSE Nifty 500 Index rose 0.79 percent.

The market breadth was tilted in favour of buyers. About 1,081 stocks advanced and 350 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher led by the NSE Nifty IT Index’s 0.95 percent gain. On the flipside, the NSE Nifty Realty Index was the top sectoral loser, down 0.1 percent.

Index Futures

• Nifty February futures closed at 11,703 discount of 4.7 points versus 6.9pts
• Nifty February futures open interest was down 0.6 percent, sheds 81,000 shares in open interest
• Nifty Bank February futures closed at 30,032 premium of 8.9 points versus 52 points
• Nifty Bank futures open interest down 4 percent, sheds 59,000 shares in open interest

Options

• Nifty PCR at 0.95 versus 0.85 (across all series)

Nifty Weekly Expiry: Feb. 6

• Max OI on call side at 12,000 (31.5 lakh shares)
• Max OI on put side at 11,500 (23.3 lakh shares)
• OI addition seen at 11,800C (+9.3 lakh shares), 11,500P (+8.3 lakh shares), 11,600P (+5.7 lakh shares)

Nifty Monthly Expiry: Feb. 27

• Max OI on call side at 12,500 (20.7 lakh shares)
• Max OI on put side at 12,000 (23.5 lakh shares)