Nifty Ends Lower For A Third Day As Metals Drag

Indian indices ended lower in today’s session led by losses in metal stocks such as Tata Steel and Vedanta Ltd.

The S&P BSE Sensex fell 0.49 percent to 41,323.81 and the NSE Nifty 50 declined 0.45 percent to 12,169.85. The broader markets represented by the NSE Nifty 500 Index fell 0.38 percent.

The market breadth was tilted in favour of sellers. About 1,012 stocks declined and 762 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Realty Index’s 1.43 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 2.2 percent.

Indag Rubber

• The stock rose 16.8 percent intraday to Rs 109 each.
• Ebitda rose by 61 percent; margins expanded By 370 basis points to 13.2 percent.

LIC Housing Finance

• The stock gained 4.3 percent to Rs 486.75 apiece.
• Fresh longs seen with high open interest of 17 percent.
• Volume at 2.5 times its 20-day average

Hindustan Aeronautics

• Shares advanced 6.7 percent intraday to Rs 859.75 apiece.
• Received approval to increase working capital limit from Rs 7,300 crore to Rs 12,050 crore.

Johnson Control-Hitachi AC India

• Shares advanced 4.1 percent to Rs 2,126.55 apiece.
• Brokerage firm Phillip Capital initiated a ‘Buy’ with a target price of Rs 2,700.

Here’s what else the brokerage house said:

• Strengthening commercial air conditioners line
• Strong manufacturing and R&D will help new launches, moving up the value chain and increasing service revenue
• See robust cash-flow generation while improvement in the returns profile

Shares of the life insurer rose as much as 1.2 percent to Rs 493.90 each. The company posted its third-quarter results on Tuesday. Profit after tax rose 2 percent year on year to Rs 302 crore.

Other Highlights (YoY)

• Gross written premium up 9.2 percent to Rs 8,264 crore.
• Persistency at 80 percent versus 81 percent.
• Annual Premium Equivalent seen up 1.2 percent to Rs 5,343 crore. (for first nine months of this fiscal)

The trading volume was nearly thrice the 20-day average for this time of the day, according to Bloomberg data.

Shares of the speciality pharma firm rose 3.8 percent to a 15-month high of Rs 152.85 apiece.

The company reported its December quarter earnings on Tuesday. Profit rose 6.1 percent year on year to Rs 64 crore.

Other Highlights (YoY)

• Revenue rose 11.4 percent to Rs 704 crore.
• Ebitda rose 44 percent to Rs 163.2 crore.
• Margin at 23.2 percent versus 17.9 percent.
• Exceptional Loss of Rs 32 crore due to impairment.

The stock has advanced 69 percent in the past 12 months compared to a 13 percent gain in the Sensex.

Asian stocks, European and U.S. futures dropped Tuesday, with Hong Kong equities leading the Asia Pacific region lower.

• The MSCI Asia Pacific Index fell 1percent.
• Futures on the S&P 500 Index fell 0.4%.
• Hang Seng Index tumbled 2.7 percent.
• Japan’s Topix Index fell 0.5 percent at the close.
• Kospi Index dropped 1.1 percent.
• S&P/ASX 200 dipped 0.2 percent.
• Shanghai Composite fell 1.3 percent.
• Euro Stoxx 50 futures fell 0.5 percent.

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Source: Bloomberg

About 10 lakh shares of Bharti Airtel changed hands in a large trad, Bloomberg data showed. Buyers and sellers were not known immediately.

Indian stocks traded lower, extending declines for the second consecutive trading session.

The S&P BSE Sensex fell 0.25 percent to 41,426 and the NSE Nifty 50 fell 0.23 percent to 12,196. The broader markets represented by the NSE Nifty 500 Index fell 0.2 percent.

About 37 lakh shares of Bharat Heavy Electricals Ltd. changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 1.1 percent fall. On the flipside, the NSE Nifty Media Index was the only sectoral gainer, up 1 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 30.9 percent to Rs 56.50. About 12.8 lakh shares were added to the open interest which stood at over 18 lakh shares.

ICICI Securities (Q3, YoY)

• Stock rose as much as 2.3 percent to Rs 433.80.
• Revenue rose 4.1 percent to Rs 422.2 crore.
• Net profit rose 35.6 percent to Rs 137.2 crore.
• Added 94,000 new clients in the current quarter.
• Retail Equities & Allied Business segment revenue rose 5 percent to Rs 228 crore.

KEI Industries (Q3, YoY)

• Stock rose as much as 4.2 percent to Rs 539.
• Revenue rose 20.8 percent to Rs 1,314.2 crore. (Estimate: Rs 1306.5 crore).
• Net profit rose 49.4 percent to Rs 72.3 crore. (Estimate: Rs 66.5 crore).
• Ebitda rose 18.4 percent to Rs 139.3 crore. (Estimate: Rs 134.4 crore).
• Margin stood at 10.6 percent versus 10.8 percent (Estimate: 10.3 percent).

Just Dial (Q3, YoY)

• Stock rose as much as 2.2 percent to Rs 592.75.
• Revenue rose 3.8 percent to Rs 235.4 crore.
• Net profit rose 8.2 percent to Rs 62 crore.
• Ebitda rose 21.6 percent to Rs 67.1 crore.
• Margin stood at 28.5 percent versus 24.3 percent.

HFCL (Q3, YoY)

• Stock fell as much as 2.3 percent to Rs 17.20.
• Revenue fell 30.1 percent to Rs 853.5 crore.
• Net profit fell 31.8 percent to Rs 46.1 crore.
• Ebitda fell 25.7 percent to Rs 95.2 crore.
• Margin stood at 11.2 percent versus 10.5 percent.

Can Fin Homes (Q3, YoY)

• Stock rose as much as 4.2 percent to Rs 405.50.
• Net interest income rose 23.6 percent to Rs 168.1 crore.
• Net profit rose 40.6 percent to Rs 106.6 crore.

Monnet Ispat & Energy (Q3, YoY)

• Stock fell as much as 4.6 percent to Rs 14.40.
• Revenue rose 18.1 percent to Rs 583.3 crore.
• Net loss was at Rs 140.4 crore versus net loss of Rs 66.4 crore.
• Ebitda loss was at Rs 24.7 crore versus Ebitda profit of Rs 20.4 crore.

Shares of Fine Organic Industries extended gains for the third consecutive trading session. The stock rose as much as 1.3 percent to hit an all-time high.

The Relative Strength Index was above 70, indicating that the stock may be overbought, according to Bloomberg data. The scrip traded at 37 times its estimated earnings per share for the coming year.

Shares of Adani Green Energy extended gains for the third consecutive trading session. The stock rose as much as 4.2 percent to Rs 206.35. The stock was locked in upper circuit of five percent in the past two trading sessions.

Prior to Jan 17, the scrip had declined for five consecutive trading sessions. Adani Green Energy advanced 411 percent in the past 12 months compared to 47 percent gain in the Sensex.

Shares of Vodafone Idea extended rally for the second consecutive trading session. The stock rose as much as 19.6 percent to Rs 5.80.

The telecom department is examining the legal applicability of Jan. 23 deadline for payment of over Rs 2.4 lakh crore statutory dues in the case of non-telecom public sector units which were not originally a party to adjusted gross revenue matter in the Supreme Court, PTI reported quoting sources.

Meanwhile, shares of Bharti Airtel fluctuated between gains and losses to trade 0.07 percent lower at Rs 508.35.

Indian stocks opened lower, extending declines for the second consecutive trading session.

The S&P BSE Sensex fell 0.5 percent to 41,311 and the NSE Nifty 50 fell 0.5 percent to 12,165. The broader markets represented by the NSE Nifty 500 Index fell 0.42 percent.

The market breadth was tilted in favour of sellers. About 898 stocks declined and 529 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Realty Index’s 0.7 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 0.63 percent.

Index Futures

• Nifty January futures closed at 12,263.1, premium of 38.6 points versus 32 points.
• Nifty January futures open interest down 3 percent, sheds 4.2 lakh shares in open interest.
• Nifty Bank January futures closed at 31,181.8, premium of 101.2 points versus 133 points.
• Nifty Bank January futures open interest up 17 percent, adds 2 lakh shares in open interest.

Options

• Nifty PCR at 1.13 versus 1.45 (across all series).

Nifty Weekly Expiry: Jan. 23

• Max open interest on call side at 12,400 (29.1 lakh shares).
• Max open interest on put side at 12,300 (14.8 lakh shares).
• Open interest addition seen at 12,300C (+19.5 lakh shares), 12,350C (+11.6 lakh shares).
• Open interest shedding seen at 12,350P (-5.6 lakh shares), 12,300P (-4.9 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (31.6 lakh shares).
• Max open interest on put side at 12,000 (33.9 lakh shares).

• All Cargo Logistics to meet Ashmore Investment Management on Jan. 22

• Suven Lifesciences ex-date for demerger.
• Uttam Value Steels, GTL Infrastructure, RDB Rasayans, IndoStar Capital Finance, Linc Pen & Plastics, Omax Autos, TIL to move into short term ASM Framework.
• One Point One Solutions, Multibase, Uniply Décor, Toyam Industries to move out of short term ASM Framework.
• Polson price band revised to 10 percent.
• Shreyas Shipping & Logistics price band revised to 5 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.11 percent to 71.18 against the greenback.

Indian stocks are set for a tepid start.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 41,618.86 and 12,218 respectively.

Nifty Earnings To Watch

• Zee Entertainment Enterprises

Other Earnings To Watch

• Polycab
• Granules
• Hatsun Agro Product
• Havells
• HDFC Asset Management Company
• ICICI Prudential Life Insurance
• Indiamart Intermesh
• Jay Bharat Maruti
• Kamat Hotels
• Mahindra EPC Irrigation
• Manaksia Aluminium
• Newgen Software Technologies
• Rane (Madras)
• Sasken Technologies
• Snowman Logistics
• Tejas Networks

Earnings Reaction To Watch

ICICI Securities (Q3, YoY)

• Revenue rose 4.1 percent to Rs 422.2 crore.
• Net Profit rose 35.6 percent to Rs 137.2 crore.
• Added 94,000 new clients in the current quarter.
• Retail Equities & Allied Business segment revenue rose 5 percent to Rs 228 crore.

KEI Industries (Q3, YoY)

• Revenue rose 20.8 percent to Rs 1,314.2 crore. (Estimate: Rs 1306.5 crore).
• Net profit rose 49.4 percent to Rs 72.3 crore. (Estimate: Rs 66.5 crore).
• Ebitda rose 18.4 percent to Rs 139.3 crore. (Estimate: Rs 134.4 crore).
• Margin stood at 10.6 percent versus 10.8 percent (Estimate: 10.3 percent).

Just Dial (Q3, YoY)

• Revenue rose 3.8 percent to Rs 235.4 crore.
• Net profit rose 8.2 percent to Rs 62 crore.
• Ebitda rose 21.6 percent to Rs 67.1 crore.
• Margin stood at 28.5 percent versus 24.3 percent.

HFCL (Q3, YoY)

• Revenue fell 30.1 percent to Rs 853.5 crore.
• Net profit fell 31.8 percent to Rs 46.1 crore.
• Ebitda fell 25.7 percent to Rs 95.2 crore.
• Margin stood at 11.2 percent versus 10.5 percent.

Can Fin Homes (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.

Monnet Ispat & Energy (Q3, YoY)

• Revenue rose 18.1 percent to Rs 583.3 crore.
• Net loss was at Rs 140.4 crore versus net loss of Rs 66.4 crore.
• Ebitda loss was at Rs 24.7 crore versus Ebitda profit of Rs 20.4 crore.

• Kohinoor Foods default on loans from financial institutions and banks stand at Rs 668.63 crore as on Dec. 31. Total financial indebtedness stood at Rs 668.63 crore. The company has already submitted its one-time settlement proposal to financial institutions.

• Bank of Baroda to appoint Sanjiv Chadha as the Bank’s MD and chief executive officer for a period of three years. Chadha is currently the deputy MD at SBI.
• Canara Bank to appoint Lingam Venkata Prabhakar as MD and CEO till December 2022. Prabhakar is currently the Executive Director at Punjab National Bank.
• Bank of India to appoint Atanu Kumar Das as Bank’s MD and CEO for three years. Das is currently the Bank’s Executive Director.

Alert: The Appointments Committee of the Cabinet had approved the aforesaid proposals of the Department of Financial Services.

• Kotak Mahindra Bank cut fiscal year 2020 loan-growth expectations to 12 percent to 13 percent.
• SBI: Government appointed Challa Sreenivasalu Setty as managing director for three years, where the term will be extendable for two years after a performance review. Appointment made on recommendation Banks Board Bureau. Cetty was deputy managing director and headed to stressed asset resolution group at SBI.
• Unitech: The Supreme Court of India has approved the takeover of Unitech by the Central Government. The existing board of directors shall stand superseded. The apex court has approved names proposed by the Central Government to the new Unitech board.
• Telecom Stocks: Telecom companies move to Supreme Court seeking permission to negotiate with the Department of Telecommunications on schedule for payment of Adjusted Gross Revenue dues.
• HG Infra Engineering received appointment date from National Highways Authority of India for its hybrid annuity mode project in Haryana. The company’s bid cost for the aforesaid project stood at Rs 580 crore.
• NBCC received a letter of Acceptance from Central Coalfield for project management services worth Rs 720.32 crore in Jharkhand.
• MOIL: Government holding in the company fell from 56.01 percent to 53.84 percent, due to equity shares tendered in the buyback offer on Jan. 16.
• Balrampur Chini Mills said that an explosion occurred at its distillery unit. The company said it is also taking adequate steps to ensure the functioning at full capacity of the said distillery unit at the earliest, of which 100 KLPD is already functioning and the remaining 60 KLPD capacity is expected to be functional in a phased manner in another 7-10 days. The said accident would not cause any production loss to the company on an annual basis.
• Indiabulls Housing Finance will consider raising funds via debt on Feb. 5.
• IDBI Bank sold 17.9 lakh shares (0.6 percent) of NSE. Bank’s current holding for the Exchange stands 0.21 percent.
• Shivam Autotech said that all workmen of Gurugram plant have resumed their duty in all shifts with effect from Jan. 18.
• JK Agri Genetics will consider raising funds on Jan. 23.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.6 percent to 12,198.50 as of 8:16 a.m.

Stocks and U.S. futures took a modest dive in morning trading in Asia, with Hong Kong equities opening to a slide in excess of 1 percent.

The yen and U.S. Treasuries advanced as a broad risk-off move developed, with gold edging higher. China’s yuan dropped.

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