Nifty Logs Longest Losing Streak In Over Three Months

Indian stocks declined for the fourth consecutive trading session and registered their longest stretch of losing streak in since Oct. 7, 2019.

The NSE Nifty 50 fell for the fourth consecutive trading session and declined 0.52 percent to close at 12,106.90. The S&P BSE Sensex declined for the third consecutive trading session and fell 0.5 percent to end at 41,115.38. The broader markets represented by the NSE Nifty 500 Index fell 0.41 percent.

The market breadth was tilted in favour of sellers. About 1,036 stocks declined and 739 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 1.54 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 1.73 percent.

• Dish TV: About 11.8 lakh shares changed hands in a large trade
• Indian Oil: About 10.4 lakh shares changed hands in a large trade

Buyers and sellers were not known immediately.
Source: Bloomberg

Hindustan Media Ventures

• Stock rose as much as 11.9 percent, the most since Nov. 1, 2019, to Rs 87.60 after the company announced December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue down 5.6 percent to Rs 208.5 crore.
• Net profit up 18.5 percent to Rs 32.7 crore.
• Ebitda up 2.5 times to Rs 30.2 crore.
• Margin at 14.5 percent versus 5.6 percent.

Prism Johnson

• Stock rose as much as 9.4 percent to Rs 73.30, the highest since Nov. 15, 2019.
• The company’s board plans to consider fund raising during its meeting scheduled on Jan. 24, 2020, according to its statement to the exchanges.

Themis Medicare

• Stock rose as much as 5 percent to Rs 372.75.
• The company received order for Feracrylum gel.
• Mandated by the government in first aid kit for all types of vehicles.
• Negotiating with various parties for utilising spare capacity for carrying out contract manufacturing of finished products.

Hatsun Agro Product

• Stock rose as much as 7.9 percent to Rs 670 after the company announced December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 16.1 percent to Rs 1,340.2 crore.
• Net profit up 50.8 percent to Rs 27.9 crore.
• Ebitda up 41 percent to Rs 133.4 crore.
• Margin at 10 percent versus 8.2 percent.

IndiaMART InterMESH

• Stock rose as much as 18.4 percent to Rs 2,478.
• Trading volume was almost 30 times its 20-day average.

Can Fin Homes

• Stock swung from a gain of as much as 8.9 percent to fall as much as 3.6 percent.
• Trading volume was almost 17 times its 20-day average.

GE Power India

• Stock fell as much as 1.6 percent to Rs 680.30.
• Trading volume was more than 13 times its 20-day average.

Bharat Dynamics

• Stock rose as much as 5.7 percent to Rs 322.95.
• Trading volume was more than 12 times its 20-day average.

Alembic Pharmaceuticals’ net profit for the December quarter surpassed its highest estimate. Shares of the drugmaker fluctuated between gains and losses to trade little changed at Rs 597 after the results announcement.

Key Earnings Highlights (Q3, YoY)

• Revenue up 18.7 percent to Rs 1,209.1 crore. (Bloomberg Estimate: Rs 1,177 crore)
• Net profit up 37.9 percent to Rs 234.2 crore. (Bloomberg Estimate: Rs 190 crore) (Highest Estimate: Rs 220 crore)
• Ebitda up 34.1 percent to Rs 325 crore. (Bloomberg Estimate: Rs 288 crore)
• Margin at 26.9 percent versus 23.8 percent.

Shares of Asian Paints fell as much as 2 percent to Rs 1,775.50 after the company announced December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 3 percent to Rs 5,420 crore. (Estimate: Rs 5,686 crore)
• Net profit up 20 percent to Rs 764 crore. (Estimate: Rs 781 crore)
• Ebitda up 8 percent to Rs 1,189 crore. (Estimate: Rs 1,174 crore)
• Margin at 21.9 percent versus 21 percent. (Estimate: 20.6 percent)

The NSE Nifty IT Index rose over 1 percent, making it the best sectoral performer on National Stock Exchange. The 10-share gauge wad led by the advance in NIIT Technologies Ltd. and Just Dial Ltd.

Indian stocks extended declines to trade at day’s low.

The S&P BSE Sensex fell 0.53 percent to 41,103 and the NSE Nifty 50 fell 0.55 percent to 12,103. The broader markets represented by the NSE Nifty 500 Index fell 0.41 percent.

Shares of Hindustan Media Ventures rose as much as 11.9 percent, the most since Nov. 1, 2019, to Rs 87.60 after the company announced December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue down 5.6 percent to Rs 208.5 crore.
• Net profit up 18.5 percent to Rs 32.7 crore.
• Ebitda up 2.5 times to Rs 30.2 crore.
• Margin at 14.5 percent versus 5.6 percent.

Shares of Nestle India halted a two-day losing streak. The stock rose as much as 2 percent to Rs 15,585.

The company surpassed Rs 1.5 lakh crore in market capitalisation earlier today. The stock was the best performer on Sensex and second-best performer on the Nifty.

Asia stocks rallied, recouping some of Tuesday’s sell-off triggered by evidence of the contagiousness of China’s coronavirus and concern with the potential economic implications.

• Futures on the S&P 500 Index were up 0.5 percent.
• Euro Stoxx 50 futures rose 0.4 percent.
• Japan’s Topix index rose 0.5 percent at the close.
• Hong Kong’s Hang Seng advanced 1.2 percent.
• Shanghai Composite added 0.3 percent.
• South Korea’s Kospi index climbed 1.2 percent.

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Source: Bloomberg

Shares of Cyient resumed gains after a blip yesterday. The stock rose as much as 9.6 percent, the most since April 2018, to Rs 504.40.

Trading volume was more than eight times its 20-day average, Bloomberg data showed. The Relative Strength Index was at 77, indicating that the stock may be overbought.

Shares of Prism Johnson rose as much as 9.4 percent to Rs 73.30, the highest since Nov. 15, 2019.

The company’s board plans to consider fund raising during its meeting scheduled on Jan. 24, 2020, according to its statement to the exchanges.

Of the shares traded, 50 percent were at the ask price and 39 percent were at the bid, according to Bloomberg data.

Shares of Oil & Natural Gas Corporation extended declines for the third consecutive trading session. The stock fell as much as 4.4 percent to Rs 122.

The scrip is the worst performer on Sensex and Nifty. Trading volume was almost three times its 20-day average, Bloomberg data showed.

The Relative Strength Index was at 27, indicating that the stock may be oversold, according to Bloomberg data.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Media Index’s 1.03 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 1.17 percent.

Nifty’s 12,200 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, fell 47.6 percent to Rs 20.50. About 21.84 lakh shares were added to the open interest which stood at over 40.17 lakh shares.

Indian stocks erased gains clocked during the opening trade.

The S&P BSE Sensex fell 0.17 percent to 41,250 and the NSE Nifty 50 fell 0.22 percent to 12,143.15. The broader markets represented by the NSE Nifty 500 Index fell 0.19 percent.

Zee Entertainment Enterprises (Q3, YoY)

• Stock fell as much as 3.8 percent to Rs 273.50.
• Revenue fell 5.5 percent to Rs 2,049 crore. (Estimate: Rs 2,116 crore)
• Ebitda fell 34 percent to Rs 526 crore. (Estimate: Rs 597 crore)
• Net profit fell 38 percent to Rs 349 crore. (Estimate: Rs 428 crore)
• Margin stood at 25.5 percent versus 36.6 percent. (Estimate: 28 percent)

Polycab (Q3, YoY)

• Stock rose as much as 4.4 percent to Rs 1,130.
• Revenue rose 23.8 percent to Rs 2,507.3 crore.
• Net profit rose 13.2 percent to Rs 218.8 crore.
• Ebitda rose 6.8 percent to Rs 339.1 crore.
• Margin stood at 13.5 percent versus 15.7 percent.

Havells (Q3, YoY)

• Stock fell as much as 4.6 percent to Rs 609.
• Revenue fell 9.9 percent to Rs 2,269.9 crore. (Estimate: Rs 2,614.1 crore)
• Net profit rose 2.4 percent to Rs 200.4 crore. (Estimate: Rs 209.8 crore)
• Ebitda fell 9.2 percent to Rs 267.4 crore. (Estimate: Rs 295.3 crore)
• Margin stood at 11.8 percent versus 11.7 percent. (Estimate: 11.3 percent)

HDFC AMC (Q3, YoY)

• Stock rose as much as 2.6 percent to Rs 3,262.
• Revenue rose 10 percent to Rs 524.7 crore.
• Net profit rose 44.9 percent to Rs 352.6 crore.
• Quarterly Average AUM rose 14 percent to Rs 382,500 crore.

Tejas Networks (Q3, YoY)

• Stock fell as much as 8.9 percent to Rs 82.20.
• Revenue fell 52.8 percent to Rs 87 crore.
• Net loss at Rs 112.1 crore vs Net Profit at Rs 32.8 crore.
• Ebitda fell 98.9 percent to Rs 0.4 crore.
• Margin stood at 0.5 percent versus 19.7 percent.

IndiaMART InterMESH (Q3, YoY)

• Stock rose as much s 15.2 percent to hit an all-time high at Rs 2,388.80.
• Revenue rose 23.4 percent to Rs 164.9 crore.
• Net profit rose 2.2 times to Rs 62 crore.
• Ebitda rose 58.5 percent to Rs 43.6 crore.
• Margin stood at 26.4 percent versus 20.6 percent.

Snowman Logistics (Q3, YoY)

• Stock fell as much as 1.2 percent to Rs 42.10.
• Revenue fell 1 percent to Rs 58.8 crore.
• Net loss was at Rs 3.4 crore versus net profit of Rs 2.4 crore.
• Ebitda fell 5.6 percent to Rs 13.5 crore.
• Margin stood at 23 percent versus 24.1 percent.

Jay Bharat Maruti (Q3, YoY)

• Stock fell as much as 5.3 percent to Rs 246.60.
• Revenue fell 12.1 percent to Rs 402.7 crore.
• Net profit fell 39.3 percent to Rs 6.8 crore.
• Ebitda fell 11.7 percent to Rs 34.6 crore.
• Margin was flat at 8.6 percent.

Shares of Varun Beverages extended gains for the eleventh consecutive trading session, their longest gaining streak since listing on Nov. 7, 2016.

The stock rose as much as 1.5 percent to hit an all-time high at Rs 800.

The Relative Strength Index was at 80, indicating that the stock may be overbought, Bloomberg data showed. The scrip returned 12.6 percent so far this year and advanced 51.2 percent in the past 12 months.

Shares of Vodafone Idea halted a two-day gaining streak. The stock fell as much as 5.9 percent to Rs 5.60.

The telecom operator filed an application for modification of Supreme Court’s order on dues. The Supreme Court has directed the application to be listed next week.

The stock declined nearly a percent in the past five days and fell 9.2 percent in the past 30 days.

Shares of Can Fin Homes extended gains for the fifth consecutive trading session. The stock rose as much as 7.6 percent to Rs 498.90, the highest since March 28, 2018. The scrip advanced 32 percent in five trading sessions.

The company announced its December quarter results on Jan. 20.

Key Earnings Highlights (Q3, YoY)

• Net interest income rose 23.6 percent to Rs 168.1 crore.
• Net profit rose 40.6 percent to Rs 106.6 crore.

Shares of Bharti Airtel extended gains for the sixth consecutive trading session. The stock rose as much as 2.3 percent to Rs 523.75, the highest since Oct. 10, 2017.

The telecom operator received an approval from the Department of Telecommunications for increasing the limit of foreign investment up to 100 percent of the paid-up capital of the company.

The Relative Strength Index was at 78, indicating that the stock may be overbought, according to Bloomberg data.

The stock returned 13 percent so far this year and 84 percent in the past 12 months.

Indian stocks are opened higher, led by the advance in Bharti Airtel Ltd.

The S&P BSE Sensex rose 0.44 percent to 41,506 and the NSE Nifty 50 rose 0.39 percent to 12,214. The broader markets represented by the NSE Nifty 500 Index rose 0.38 percent.

The market breadth was tilted in favour of buyers. About 1,035 stocks advanced and 418 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 0.64 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.15 percent.

Index Futures

• Nifty January futures closed at 12,203, premium of 33.3 points versus 38.6 points.
• Nifty January futures open interest down 1.2 percent, sheds 1.6 lakh shares in open interest.
• Nifty Bank January futures closed at 31,042.8, premium of 95.3 points versus 101.2 points.
• Nifty Bank January futures open interest up 2.4 percent, adds 34.5k shares in open interest.

Options

• Nifty PCR at 1.07 versus 1.13 (across all series).

Nifty Weekly Expiry: Jan. 23

• Max open interest on call side at 12,300 (27.8 lakh shares).
• Max open interest on put side at 12,000 (15.7 lakh shares).
• Open interest addition seen at 12,200C (+12.7 lakh shares), 12,250C (+6 lakh shares), 12,100P (+5.5 lakh shares).
• Open interest shedding seen at 12,300P (-6.3 lakh shares), 12,250P (-3 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (34.5 lakh shares)
• Max open interest on call side at 12,500 (34.5 lakh shares)

• Suven Lifesciences record date for demerger.
• Dynacons Systems & Solutions, GSS Infotech, Shreyas Shipping & Logistics to move into short term ASM Framework .
• Somany Home Innovation, Madhucon Projects to move out of short term ASM Framework.
• Jaiprakash Power Ventures, Shyam Century Ferrous , Zuari Agro Chemicals, Emami Realty, Technofab Engineering, Ashapura Minechem, Goa Carbon, Mirc Electronics to move into ASM Framework.
• Williamson Magor price band revised to 5 percent .

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.12 percent to 71.12 against the greenback.

Indian stocks are set to open higher.

The S&P BSE Sensex rose 0.59 percent to 41,569.47 during the pre-market trade and the NSE Nifty 50 rose 0.44 percent to 12,229.

Nifty Earnings To Watch

• Larsen & Toubro
• Asian Paints
• Axis Bank

Other Earnings To Watch

• Raymond
• RBL Bank
• Ujjivan Small Finance Bank
• SBI Life Insurance
• Alembic Pharmaceuticals
• Agro Tech Foods
• AU Small Finance Bank
• CEAT
• CreditAccess Grameen
• Cigniti Technologies
• Eimco Elecon
• Gateway Distriparks
• Genus Power Infrastructures
• Hindustan Media Ventures
• Hi-Tech Pipes
• IIFL Wealth Management
• India Grid Trust
• Motilal Oswal Financial Services
• Rane Engine Valve
• Sharda Cropchem
• Supreme Petrochem
• Syngene International
• Tata Communications
• VST Industries

Earnings Reaction To Watch

Zee Entertainment Enterprises (Q3, YoY)

• Revenue fell 5.5 percent to Rs 2,049 crore. (Estimate: Rs 2,116 crore)
• Ebitda fell 34 percent to Rs 526 crore. (Estimate: Rs 597 crore)
• Net profit fell 38 percent to Rs 349 crore. (Estimate: Rs 428 crore)
• Margin stood at 25.5 percent versus 36.6 percent. (Estimate: 28 percent)

Polycab (Q3, YoY)

• Revenue rose 23.8 percent to Rs 2,507.3 crore.
• Net profit rose 13.2 percent to Rs 218.8 crore.
• Ebitda rose 6.8 percent to Rs 339.1 crore.
• Margin stood at 13.5 percent versus 15.7 percent.

Havells (Q3, YoY)

• Revenue fell 9.9 percent to Rs 2,269.9 crore. (Estimate: Rs 2,614.1 crore)
• Net profit rose 2.4 percent to Rs 200.4 crore. (Estimate: Rs 209.8 crore)
• Ebitda fell 9.2 percent to Rs 267.4 crore. (Estimate: Rs 295.3 crore)
• Margin stood at 11.8 percent versus 11.7 percent. (Estimate: 11.3 percent)

HDFC AMC (Q3, YoY)

• Revenue rose 10 percent to Rs 524.7 crore.
• Net profit rose 44.9 percent to Rs 352.6 crore.
• Quarterly Average AUM rose 14 percent to Rs 382,500 crore.

Tejas Networks (Q3, YoY)

• Revenue fell 52.8 percent to Rs 87 crore.
• Net loss at Rs 112.1 crore vs Net Profit at Rs 32.8 crore.
• Ebitda fell 98.9 percent to Rs 0.4 crore.
• Margin stood at 0.5 percent versus 19.7 percent.

IndiaMART InterMESH (Q3, YoY)

• Revenue rose 23.4 percent to Rs 164.9 crore.
• Net profit rose 2.2 times to Rs 62 crore.
• Ebitda rose 58.5 percent to Rs 43.6 crore.
• Margin stood at 26.4 percent versus 20.6 percent.

Snowman Logistics (Q3, YoY)

• Revenue fell 1 percent to Rs 58.8 crore.
• Net loss was at Rs 3.4 crore versus net profit of Rs 2.4 crore.
• Ebitda fell 5.6 percent to Rs 13.5 crore.
• Margin stood at 23 percent versus 24.1 percent.

Jay Bharat Maruti (Q3, YoY)

• Revenue fell 12.1 percent to Rs 402.7 crore.
• Net profit fell 39.3 percent to Rs 6.8 crore.
• Ebitda fell 11.7 percent to Rs 34.6 crore.
• Margin was flat at 8.6 percent.

• Bharti Airtel received approval from the Department of Telecommunications for increasing the limit of foreign investment up to 100 percent of the paid-up capital of the company.
• Glenmark Pharma will sell its Gynaecology business in India and Nepal to True North Fund’s unit Integrace for a deal valued at Rs 115 crore. The company expects complete the sale by March 31.
• Biocon said that it has received the subscription money aggregating to Rs 536.25 crore from True North Fund. The board of Biocon Biologics has approved allotment of 50.25 lakh shares at Rs 1,067.07 per share to True North Fund.
• Piramal Enterprises will consider shareholders nod for divestment of its Healthcare Insights and Analytics Business on Feb. 13. The company also stated that based on the preliminary information the total application for its Rights Issue has been over-subscribed.
• Reliance Power: Axis Bank has filed the application for initiation of Corporate Insolvency Resolution Process against company’s arm Vidarbha Industries Power for a claim of Rs 553.28 crore.
• Vodafone Idea filed an application for modification of Supreme Court’s order on dues. Supreme Court has directed the application to be listed next week.
• Gati approved allotment of 1.33 crore shares to Allcargo Logistics on a preferential basis at a price of Rs 75 per share, aggregating to Rs 100 crore. Allotment price is at a premium of 13 percent to the closing prices as of Jan. 21.
• Dredging Corporation of India: LIC reduced stake from 6.97 percent to 4.91 percent in the company.
• Aster DM Healthcare planned to sell dollar bonds as soon as this quarter. (BN)
• Usha Martin: Adjudicating Authority issued an order confirming the provisional order for provisional attachment of certain immovable properties of the company valued at Rs 190 crore. The company said that it has filed an appeal against the said order on Jan. 10 with the Appellate Tribunal.
• Suven Life Sciences said that post demerger, its resultant company Suven Pharma will be listed on the exchanges. The company said that shareholders to apportion their original cost of acquisition in shares at 47.54 percent for Suven Life Sciences and the remaining 52.46 percent for Suven Pharma.
• Indian Overseas Bank: Board has approved issuing equity shares on preferential basis to the Government for the capital infusion of Rs 4,360 crore received during FY20.
• IL&FS Transportation Networks defaulted in payment NCDs interest worth Rs 14.9 crore which was due on Jan. 21.
• Themis Medicare said that the company has received orders for supply of Feracrylum Gel, which has been mandated by the Government in first aid kit for all types of vehicles. The company said that it is also negotiating with various parties for utilising spare capacity for carrying out contract manufacturing of finished products.
• ZF Steering said that its Pithampur plant has started commercial production with effect from Jan. 21
• Cera Sanitaryware: Board will consider the appointment of Deepshikha Khaitan as Joint managing director on Feb. 5.
• Beekay Steel Industries: Board approved the acquisition of Durable Ispat & Alloys.
• Mayur Uniquoters said that its PU plant in Madhya Pradesh has commenced operations from Jan. 21.
• Allahabad Bank to consider a proposal for raising equity capital via preferential allotment up to Rs 2,153 crore on Jan. 24.
• OnMobile Global dissolved its U.K. arm with effect from Jan. 2.

• U.S. equities fell on reports that a deadly respiratory illness that originated in China had migrated to the U.S., spurring concern about the potential economic impact.
• The pound advanced after the U.K.’s employment rate hit a record high, weakening the case for an imminent interest-rate cut.
• Oil erased some earlier declines as concern mounted about supply disruptions in Libya and Iraq despite ample output from other major producers.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.47 percent to 12,247 as of 8:45 a.m.

Asian stocks began Wednesday mixed as investors mull reports that China’s coronavirus had migrated to the U.S. mainland.

Stocks in Japan and South Korea were little changed, along with U.S. equity futures, while Australian shares edged up. Futures in Hong Kong pointed higher after a sharp slide in stocks there yesterday.

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