Private Lenders Help Sensex, Nifty Gain For Second Straight Day

Indian indices ended higher for the second consecutive trading session, led by the gains in Kotak Mahindra Bank Ltd. and ICICI Bank Ltd.

The S&P BSE Sensex rose 0.5 percent to end at 41,613.19 and the NSE Nifty 50 rose 0.5 percent to end at 12,248.25. The broader markets represented by the NSE Nifty 500 Index rose 0.62 percent.

The market breadth was tilted in favour of buyers. About 999 stocks advanced and 773 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Metal Index’s 0.97 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.07 percent.

Atul

• Stock rose as much as 4.9 percent to Rs 4,598.
• Revenue up 1 percent to Rs 1,041.4 crore.
• Net profit up 43.7 percent to Rs 168.1 crore.
• Ebitda up 16.8 percent to Rs 249.2 crore.
• Margin at 23.9 percent versus 20.7 percent.

NLC

• Stock rose as much as 6.4 percent to Rs 58.75.
• Company to raise Rs 525 crore via issue of NCDs.

AU Small Finance Bank

• Shares rallied for the second consecutive trading session.
• The stock rose as much as 5.9 percent to hit an all-time high at Rs 1,032.95.

Bata

• Stock rose as much as 2.6 percent to Rs 1,847.40.
• Fresh longs seen with high open interest of 14 percent.
• Trading volume was three times its 20-day average.

Zensar Technologies

• Stock fell as much as 13.6 percent to Rs 171.85.
• Trading volume was more than 11 times its 20-day average.

GMM Pfaudler

• Stock rose as much as 20 percent to Rs 2,588.70.
• Trading volume was more than 10 times its 20-day average.

Essel Propack

• Stock rose as much as 11.9 percent to Rs 197.
• Trading volume was almost 10 times its 20-day average.

Indian Bank

• Stock rose as much as 4.9 percent to Rs 109.70.
• Trading volume was more than four times its 20-day average.

Shares of UltraTech Cement fell as much as 1.6 percent to Rs 4,452.65 after the company announced its December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 0.4 percent to Rs 9,981.75 crore. (Estimate: Rs 10,326.9 crore)
• Net profit up 48.6 percent to Rs 643.15 crore. (Estimate: Rs 783.2 crore)
• Ebitda up 16.6 percent to Rs 1,786.03 crore. (Estimate: Rs 2,023.9 crore)
• Margin at 17.8 percent versus 15.4 percent.

Shares of AU Small Finance Bank rallied for the second consecutive trading session. The stock rose as much as 5.9 percent to hit an all-time high at Rs 1,032.95.

The company had announced its December quarter results post Wednesday’s close.

Key Earnings Highlights (Q3, YoY)

• Net interest income up 46 percent to Rs 506.83 crore.
• Net profit up 99.5 percent to Rs 190.19 crore.
• Provisions down 34.3 percent to Rs 401.06 crore. (QoQ)
• Gross NPA at 1.88 percent versus 2.01 percent. (QoQ)
• Net NPA at 1.01 percent versus 1.14 percent. (QoQ)

Indian stocks traded at day’s high after fluctuating between gains and losses in the opening trade.

The S&P BSE Sensex rose 0.5 percent to Rs 41,599 and the NSE Nifty 50 rose 0.58 percent to 12,251. The broader markets represented by the NSE Nifty 500 Index rose 0.65 percent.

Shares of Century Textiles & Industries extended gains for the sixth consecutive trading session. The stock rose as much as 7.4 percent to Rs 629.85, the highest since Jan. 24, 2018.

Trading volume was triple its 20-day average, Bloomberg data showed. The Relative Strength Index was at 87, indicating that the stock may be overbought.

Stocks in Asia struggled for traction as investors mulled the situation arising from the deadly coronavirus outbreak.

• Futures on the S&P 500 Index added 0.1 percent.
• Euro Stoxx 50 futures advanced 0.8 percent.
• Japan’s Topix index was flat at the close.
• Hong Kong’s Hang Seng added 0.2 percent.
• Australia’s S&P/ASX 200 Index was little changed.

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Shares of Allcargo Logistics extended gains for the third consecutive trading session. The stock rose as much as 13.3 percent, the most since Sept. 24, 2019, to Rs 117.80.

Trading volume was more than 18 times its 20-day average, Bloomberg data showed. The Relative Strength Index was 74, indicating that the stock may be overbought.

Shares of PNB Housing Finance extended declines for the second consecutive trading session. The stock fell as much as 11.8 percent, the most since Oct. 16, 2019, to Rs 476.30.

The company said that said that Punjab National Bank will maintain a minimum shareholding in PNB Housing Finance at 26 percent and will continue to be the promoter of the company.

Trading volume was almost five times its 20-day average, Bloomberg data showed. Of the shares traded, 46 percent were at the ask price and 38 percent were at the bid, according to Bloomberg data.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 0.8 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.4 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. 30, rose 35.46 percent to Rs 98.55. About 40,425 lakh shares were removed from the open interest which stood at over 31.16 lakh shares.

Indian stocks gained momentum after fluctuating between gains and losses in the opening trade.

The S&P BSE Sensex rose 0.36 percent to 41,535.47 and the NSE Nifty 50 rose 0.4 percent to 12,230.20. The broader markets represented by the NSE Nifty 500 Index rose 0.5 percent.

HDFC Life Insurance (Q3, YoY)

• Stock fell as much as 2.1 percent to Rs 602.80.
• Gross premium rose 14.9 percent to Rs 8,001 crore.
• PAT rose 2 percent to Rs 250 crore.

Biocon (Q3, YoY)

• Stock fell as much as 4 percent to Rs 282.45.
• Revenue rose 13.5 percent to Rs 1,748.1 crore.
• Net profit fell 6.6 percent to Rs 202.8 crore.
• EBITDA rose 16.7 percent to Rs 444.2 crore.
• Margin stood at 25.4 percent vs 24.7 percent.
• Small molecules revenue rose 16 percent to Rs 543.8 crore.
• Biologics revenue rose 31 percent to Rs 588.2 crore.
• Branded Formulations revenue fell 26 percent to Rs 157.3 crore.

Cholamandalam Investment & Finance (Q3, YoY)

• Stock rose as much as 1.7 percent to Rs 329.
• Net interest income rose 21.3 percent to Rs 925.3 crore.
• Net profit rose 27.6 percent to Rs 388.5 crore.
• Disbursements fell 2 percent to Rs 747.5 crore.

Zensar Tech (Q3, QoQ)

• Stock fell as much as 13.6 percent to Rs 171.85.
• Revenue fell 4.8 percent to Rs 1,020.6 crore.
• Net profit fell 50.6 percent to Rs 39.5 crore.
• EBIT fell 74.6 percent to Rs 28.4 crore.
• Margin stood at 2.8 percent vs 10.4 percent.

CDSL (Q3, YoY)

• Stock fell as much as 4.8 percent to Rs 265.10.
• Revenue rose 17.4 percent to Rs 54.1 crore.
• Net profit fell 26 percent to Rs 20.8 crore.
• Took one-time charge for a non-recurring previous years’ anticipated statutory liability of Rs 10.6 crore.

Shares of Infosys fell as much as 1.1 percent to Rs 775.75.

The Securities and Exchange Board of India is likely to call for a forensic audit of the books of Infosys Ltd. as it continues to probe whistleblower allegations of alleged financial irregularities at the company, PTI reported quoting sources.

Of the shares traded, 42 percent were at the ask price and 39 percent were at the bid, according to Bloomberg data.

Shares of Power Grid resumed declines after a one-day breather. The stock fell as much as 3.8 percent to Rs 194.25.

The scrip was the worst performer on Sensex and Nifty. Of the shares traded, 53 percent were at the ask price and 36 percent were at the bid, according to Blomberg data.

Shares of Adani Gas fell as much as 14 percent, the most on record, to Rs 148.75.

“The Petroleum & Natural Gas Regulatory Board has issued a notice to Adani Gas, seeks to cancel Adani Gas’ licenses and levy a penalty of Rs 400 crore,” CNBC-TV18 reported quoting sources.

Trading volume was nine times its 20-day average, Bloomberg data showed. The stock declined 11 percent in the past five days and fell 1.3 percent in the past 30 days.

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 41,409 and 12,188 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

The market breadth was tilted in favour of buyers. About 892 stocks advanced and 529 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Realty Index’s 0.63 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.65 percent.

Index Futures

• Nifty January futures closed at 12,201, premium of 20.7 points versus 38 points.
• Nifty January futures open interest down 2 percent, sheds 2.7 lakh shares in open interest.
• Nifty Bank January futures closed at 31,090, premium of 86 points versus 101.4 points.
• Nifty Bank January futures open interest down 14 percent, sheds 2.1 lakh shares in open interest.

Options

• Nifty PCR at 1.26 versus 1.00 (across all series)

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (35.4 lakh shares).
• Max open interest on put side at 12,000 (41.3 lakh shares).
• Open interest addition seen at 12,100P (+8.1 lakh shares), 12,000P (+5.8 lakh shares).

• Aster DM Healthcare record date for share-buyback.
• Nifty CPSE Index Changes: Stocks to be excluded IOC, PFC. Stocks to be included: Cochin Shipyard, NHPC, NMDC, Power Grid.
• AGC Networks to move into ASM Framework.
• Indiabulls Ventures to move out of short term ASM Framework.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.1 percent to 71.34 against the greenback.

Indian stocks are set to open lower.

The S&P BSE Sensex traded little changed at 41,403 during the pre-market trade and the NSE Nifty 50 fell 0.36 percent to 12,133.

Nifty Earnings To Watch

• JSW Steel
• UltraTech Cement

Other Earnings To Watch

• Bank of Baroda
• Aavas Financiers
• Prestige Estates Projects
• Sonata Software
• Supreme Industries
• Wendt
• Allsec Technologies
• Atul
• EIH
• Emkay Global Financial Services
• Kirloskar Ferrous
• Onward Technologies
• Apollo Micro Systems
• Indian Bank
• Mangalam Drugs And Organics

Earnings Reaction To Watch

HDFC Life Insurance (Q3, YoY)

• Gross premium rose 14.9 percent to Rs 8,001 crore.
• PAT rose 2 percent to Rs 250 crore.

Biocon (Q3, YoY)

• Revenue rose 13.5 percent to Rs 1,748.1 crore.
• Net profit fell 6.6 percent to Rs 202.8 crore.
• EBITDA rose 16.7 percent to Rs 444.2 crore.
• Margin stood at 25.4 percent vs 24.7 percent.
• Small molecules revenue rose 16 percent to Rs 543.8 crore.
• Biologics revenue rose 31 percent to Rs 588.2 crore.
• Branded Formulations revenue fell 26 percent to Rs 157.3 crore.

Cholamandalam Investment & Finance (Q3, YoY)

• Net Interest Income rose 21.3 percent to Rs 925.3 crore.
• Net profit rose 27.6 percent to Rs 388.5 crore.
• Disbursements fell 2 percent to Rs 747.5 crore.

Zensar Tech (Q3, QoQ)

• Revenue fell 4.8 percent to Rs 1,020.6 crore.
• Net profit fell 50.6 percent to Rs 39.5 crore.
• EBIT fell 74.6 percent to Rs 28.4 crore.
• Margin stood at 2.8 percent vs 10.4 percent.

CDSL (Q3, YoY)

• Revenue rose 17.4 percent to Rs 54.1 crore.
• Net profit fell 26 percent to Rs 20.8 crore.
• Took one-time charge for a non-recurring previous years’ anticipated statutory liability of Rs 10.6 crore.

• Telcos: Department of Telecommunications has directed officials not to take action against the companies on adjusted gross revenue non-payment, according to Bloomberg report.
• Reliance Industries: Jio has paid Rs 195 crore to DoT to clear all AGR dues until Jan. 31, according to a TI report.
• GAIL filed an application with Supreme Court seeking clarification on the provisional assessment orders the company has received from DoT.
• KEI Industries approved QIP Floor Price at Rs 518.14 per share, which is at a discount of 1 percent to the closing prices as on Jan. 23. Company looking to raise Rs 400 crore with a greenshoe option to raise another Rs 100 crore. If the company raises Rs 500 crore at issue price, it will lead to equity dilution of 10.8 percent stake on the expanded equity base.
• Infosys: SEBI may probe whistleblower allegations against the company, according to a Bloomberg report.
• Biocon: Kiran Mazumdar Shaw appointed as the executive chairperson for five years with effect from April 1. Her term as managing director will come to an end on March 31, and she is not seeking re-appointment.
• Olectra Greentech’s arm Evey received letters of award for the deployment of 555 electric buses from 8 city/state transport authorities. The contract period is for 10-12 years.
• PNB Housing Finance said that Punjab National Bank will maintain a minimum shareholding in PNB Housing Finance at 26 percent and will continue to be the promoter of the company.
• HFCL said that its greenfield optical fibre manufacturing facility at Hyderabad has been commissioned and commenced its operations with effect from Jan. 23.
• Muthoot Finance will consider raising funds via non-convertible debentures on Feb. 14.
• Info-Edge has set up an AIF to invest in tech- and tech-enabled entities. The company will invest Rs 100 crore in the fund.
• Century Textiles & Industries: Board to consider raising the capital issue of NCDs for a rose to Rs 400 crore on Jan. 28.
• Coffee Day Enterprises entered into definitive agreement to sell its share broking arm Way2Wealth Securities and its arms to Shriram Capital’s group company.
• Thyrocare Technologies to consider the reappointment of Dr. A Velumani as MD and CEO on Feb. 1.
• Sadhana Nitro Chem to consider share split of 5:1 on Jan. 31.
• CG Power & Industrial Solutions: Public Prosecutor filed for Bankruptcy of company’s two Belgium arms. Hearing for this is fixed on Feb. 3.
• JK Lakshmi Cement will consider raising funds via External Commercial Borrowings on Jan. 28.

• U.S. stocks eked out a small advance, dodging the losses that took hold in Europe and Asia, as investors evaluated the risk that a deadly respiratory virus spreading from China could curb global growth.
• Oil is on track for its third straight week of declines as investors remained focused on the risk that China’s coronavirus outbreak may dent demand.

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Asian stocks were mixed as investors mulled updates on the deadly coronavirus outbreak.

Early gains in Tokyo fizzled and Hong Kong traded flat, while shares in Sydney ticked higher. U.S. stock futures were steady. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.16 percent to 12,176.50 as of 8:30 a.m.

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