Sensex, Nifty End Lower As Metals Drag

Indian equities indices closed lower dragged down by losses in metal stocks such as Tata Steel Ltd. and Vedanta Ltd.

The S&P BSE Sensex declined as much as 0.39 percent to 40,979.60 and the NSE Nifty 50 declined close to 0.55 percent to 12,031.50. The broader markets represented by the NSE Nifty 500 Index, too, ended 0.55 percent lower at 9,945.65.

The Nifty is not expected to go below 11,950 in the near term and there may be another attempt to rally towards 12,150. That’s according to Hemen Kapadia, technical research analyst, KR Choksey.

The market breadth was tilted in favour of sellers. About 1,140 stocks declined and 684 shares advanced on National Stock Exchange.

All 11 sectoral gauges compiled by the NSE traded lower, led by the NSE Nifty Metal Index’s 3 percent fall.

Nifty’s 12,100 call option contract was among the most active Nifty option contracts on National Stock Exchange.

The premium on the contract, which is set to expire on Feb. 13, rose 73.98 percent to Rs 59.80. About 6.46 lakh shares were added to the open interest which stood at over 23.46 lakh shares.

The Nifty is not expected to go below 11,950 in the near term and there may be another attempt to rally towards 12,150. That’s according to Hemen Kapadia, technical research analyst, KR Chouksey.

“We are set for another 150-point rally once the market reaches 12,150,” said Kapadia in an interview to BloombergQuint. “However, we running into historically strong resistance levels beyond that and market is not set for a big-bang breakout from these levels.”

Shares of the state-run gas distributor fell close to 3.1 percent to Rs 119.25 apiece.

The company reported its third-quarter results on Monday. Net profit rose 17.5 percent to Rs 1,250.70 crore.

Other Highlights:

• Revenue fell 1.5 percent to Rs 17,767.3 crore.
• Ebitda rose 32.6 percent to Rs 2,072.4 crore.
• Operating margin at 11.7 percent versus 8.7 percent.

The stock traded at nine times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the cement maker declined 3.7 percent, biggest fall in over nearly a month, to Rs 758.65 each.

The company reported its earnings on Monday. Net profit fell 27 percent to Rs 680.3 crore.

Other Highlights:

• Revenue fell 1.4 percent to Rs 19,205 crore.
• Ebitda declined 4.8 percent to Rs 2,968 crore.
• Ebitda margin stood at 15.5 percent versus 16 percent.

The stock advanced 7.4 percent compared to 12 percent gain in the Sensex Index.

Shares of the state-run gas distributor fell close to 2 percent to Rs 120.55 apiece.

The company is scheduled to announce its December quarter results on Monday. Net profit is expected to rise 9 percent to Rs 1,161 crore, according to estimates compiled by BloombergQuint.

Other Highlights (QoQ)

• Revenue is expected to rise 4 percent to Rs 18,766 crore.
• Ebitda seen up 19.2 percent to Rs 1,863 crore.
• Ebitda margin at 9.9 percent versus 8.7 percent.

The stock traded at nine times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the auto-parts maker declined 5.7 percent intraday to Rs 124.70 apiece.

The company reported its third quarter earnings on Monday. Net profit declined 30 percent to Rs 271 crore.

• Revenue down 4.9 percent to Rs 15,661 crore.
• Ebitda declined 11 percent to Rs11,47.94 crore.
• Operating margin at 7.3 percent versus 7.9 percent.

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

Shares of the power equipment maker surged 12.8 percent intraday to Rs 40.50 each.

The Chennai headquartered firm bagged two orders totally worth Rs 573.3 crore, according to an exchange notification. The orders were from Jharkhand Urja Sancharan Nigam Ltd. Nuclear Power Corporation, the filing said.

The stock declined 19 percent in the past 12 months compared with a 12 percent gain in the Sensex.

One of India’s best-known value investors is no longer going after value.

“Value is out of fashion right now, deeply out of fashion. Even Warren Buffett is having a tough time,” Raamdeo Agrawal, chairman of Motilal Oswal Financial Services, said at a PMS AIF World event in Mumbai. “Earlier you used to buy cheap. If you end up buying cheap, you were guaranteed to make money. That's not the scene now.”

Indian equities indices decline dragged down by losses in metal stocks such as Tata Steel and Vedanta Ltd.

The S&P BSE Sensex declined as much as 0.54 percent to 40,917.90 and the NSE Nifty 50 declined 0.68 percent to 12,098.35 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded lower.

The market breadth was tilted in favour of sellers. About 1,120 stocks declined and 648 shares advanced on National Stock Exchange.

All 11 sectoral gauges compiled by the NSE traded lower, led by the NSE Nifty Metal Index’s 3.1 percent fall.

Shares of the tractor maker fell 7.6 percent to Rs 526.05 apiece.

The Mahindra Group firm reported its December quarter results on Saturday. Its profit declined 73 percent to Rs 380 crore on account of provisions taken to impair certain investments, according to its exchange filing.

Other Highlights:

• Revenue fell 6 percent to Rs 12,120 crore.
• Ebitda rose 1.6 percent to Rs 1,793 crore.
• Margin stood at 14.8 percent versus 13.7 percent.

Thirty six of the 44 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock. Seven had recommended ‘Hold’ while one analyst had a ‘Sell’ rating.

Shares of the micro-finance lender declined as much as 3.6 percent to Rs 1,029 each.

JM Financial reduced its stake from 6.01 percent to 3.36 percent in the company on Feb. 5, according to an exchange filing.

The stock traded at 17 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the steelmaker declined 5.5 percent, biggest intraday slide in two months, to Rs 445.30 apiece.

The Tata Group company reported its third-quarter earnings on Friday. It reported a surprise loss of Rs 1,029.1 crore compared to a net profit of Rs 2,333.4 crore in the previous quarter.

• Revenue fell 8.6 percent to Rs 35,520 crore, compared with the Rs 35,024.5-crore forecast.
• Operating profit fell 46.1 percent to Rs 3,619.8 crore.
• Margin narrowed 710 basis points to 10.2 percent.
• Other income slumped 57 percent to Rs 92.9 crore.

The trading volume was four times its 20-day average for this time of the day, Bloomberg data showed.

Shares of the private lender jumped 5.3 percent to a two-week high of Rs 40.75 each.

Shareholders approved a proposal to raise Rs 10,000 crore through QIP issue, according to an exchange filing. Also, the shareholders approved a plan to raise the lenders authorised capital to Rs 1,100 crore, the filing added.

The stock fell 78 percent in the past 12 months compared with a 13 percent advance on Nifty Index.

Indian equities indices traded lower in the opening trade.

The S&P BSE Sensex declined as much as 0.19 percent to 41,066.95 and the NSE Nifty 50 declined 0.29 percent to 12,065.45 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded lower.

The market breadth was tilted in favour of buyers. About 814 stocks advanced and 656 shares declined on National Stock Exchange.

However, nine out of 11 sectoral gauges compiled by the NSE traded lower, led by the NSE Nifty Metal Index’s 1.6 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 0.25 percent.

Index Futures

• Nifty February futures closed at 12,095.9 discount of 2.4 points versus 1.5 points.
• Nifty February futures OI up 0.2 percent, adds 21,000 shares in OI.
• Nifty Bank February futures closed at 31,240.4, premium 38.5 points versus 28.8 points.
• Nifty Bank futures OI up 3 percent, adds 36,000 shares in OI.

Options

• Nifty PCR at 1.39 versus 1.48 (Across all series)

Nifty Weekly Expiry: Feb 13

• Max OI on call side at 12,200 (17.9 lakh shares)
• Max OI on put side at 12,000 (16.9 lakh shares)
• OI addition seen at 12,200C (+6.2 lakh shares), 12,150C (+6 lakh shares), 11,900P (+4.4 lakh shares)

Nifty Monthly Expiry: Feb 27

• Max OI on call side at 12,500 (26 lakh shares)
• Max OI on put side at 12,000 (31.6 lakh shares)

Securities In Ban

• Yes Bank

The Indian rupee opened higher against the U.S. dollar. The home currency strengthened as much as 0.1 percent to 71.35 against the greenback.

Nifty Earnings To Watch

• GAIL
• Grasim Industries

Other Earnings To watch

• NALCO
• MRF
• Dilip Buildcon
• Phoenix Mills
• Union Bank of India
• Kajaria Ceramics
• Somany Ceramics
• Kalpataru Power Transmission
• Motherson Sumi Systems
• Sheela Foam
• Rupa & Company
• Oil India
• Petronet LNG
• Chalet Hotels
• Indiabulls Real Estate
• Indian Overseas Bank
• General Insurance Corporation of India
• Bajaj Consumer Care
• Balrampur Chini Mills
• Sundaram Finance
• Bharat Forge
• Birla Precision Technologies
• Bombay Dyeing
• Capacit'e Infraprojects
• CESC Ventures
• Dwarikesh Sugar Industries
• Eros International Media
• Fairchem Speciality
• Aban Offshore
• ARSS Infrastructure Projects
• Ashapura Minechem
• Shilpa Medicare
• DCM Shriram Industries
• DFM Foods
• Gujarat Sidhee Cement
• Gujarat State Financial Corporation
• HBL Power Systems
• IL&FS Investment Managers
• India Glycols
• India Nippon Electricals
• Indian Terrain Fashions
• Ingersoll Rand (India)
• IOL Chemicals and Pharmaceuticals
• JMC Projects (India)
• Majesco
• Patel Engineering
• Punjab & Sind Bank
• Sandhar Technologies
• State Trading Corporation Of India

Earnings Reaction To Watch

Mahindra & Mahindra (Q3, YoY)

• Revenue fell 6 percent to Rs 12,120 crore.
• Ebitda rose 1.6 percent to Rs 1,793 crore.
• Margin stood at 14.8 percent versus 13.7 percent.
• Net profit fell 73 percent to Rs 380 crore.

Tata Steel (Q3, YoY)

• Revenue declined 8.6 percent to Rs 35,520.4 crore.
• Net loss at Rs 1,029.1 crore versus net profit at Rs 2,334.2 crore.
• Ebitda down 46.1 percent to Rs 3,619.8 crore.
• Operating margin at 10.2 percent versus 17.3 percent.
• Exceptional loss of Rs 328.6 crore due to provisions created for impairment of assets, demand, claims and employee compensation.

Britannia (Q3, YoY)

• Revenue rose 4.9 percent to Rs 2,982.7 crore.
• Net profit rose 23.9 percent to Rs 372.6 crore.
• Ebitda up 11.1percent to Rs 502.1 crore.
• Margin at 16.8 percent versus 15.9 percent.
• Board approved commercial paper issue of Rs 800 crore.

NTPC (Q3, YoY)

• Revenue drop 2.6 percent at Rs 23,496.4 crore.
• Net profit up 25.6 percent to Rs 2,995.1 crore.
• Ebitda rose 6 percent to Rs 6,976.4 crore.
• Margin at 29.7 percent versus 27.3 percent.
• Other income up 2.8 times to Rs 526.3 crore.

UPL (Q3, YoY)

• Revenue up 80.7 percent to Rs 8,892 crore.
• Net profit jumped 52.1 percent to Rs 701 crore.
• Ebitda up 2 times to Rs 2,070 crore.
• Margin at 23.3 percent versus 20.6 percent.

*Numbers not comparable due to incorporation of Arysta's financials from Q4FY19

Whirlpool (Q3, YoY)

• Revenue rose 4.9 percent to Rs 1,271.2 crore.,
• Net profit rose 20.8 percent to Rs 73.2 crore.
• Ebitda declined 8 percent to Rs 89.7 crore.\
• Margin at 7.1 percent versus 8 percent.

ACC (Q4, YoY)

• Revenue rose 4.2 percent at Rs 4,060.3 cror.
• Adjusted net profit up 17 percent to Rs 269.2 crore.
• Ebitda up 11 percent to Rs 540.6 crore.
• Margin at 13.3 percent versus 12.5 percent.

KEC International (Q3, YoY)

• Revenue rose 16.1 percent to Rs 3,073.1 crore.
• Net profit up 28.9 percent to Rs 144.9 crore.
• Ebitda rose 13.2 percent to Rs 318.5 crore.
• Margin at 10.4 percent versus 10.6 percent.

New India Assurance (Q3, YoY)

• Premium Earned up 11.7 percent to Rs 6,176.5 crore versus Rs 5,529 crore.
• Net profit to Rs 494.9 crore versus net loss at Rs 112.8 crore.
• Solvency Ratio at 2.1 times.

Oberoi Realty (Q3, YoY)

• Revenue flat at Rs 527.4 crore versus Rs 528.6 crore.
• Net profit up 7.5 percent to Rs 148.2 crore.
• Ebitda up 22.2 percent to Rs 229.9 crore.
• Margins at 43.6 percent versus 35.6 percent.

Container Corporation of India (Q3, YoY)

• Revenue fell 7.8 percent to Rs 1527.6 crore.
• Net profit declined 36.1 percent to Rs 175.5 crore.
• Ebitda fell 11.1 percent to Rs 371.8 crore.
• Margin at 24.3 percent versus 25.2 percent.

Mahanagar Gas (Q3, YoY)

• Revenue down 1.1 percent to  Rs 744.5 crore.
• Net profit rose 25.5 percent to Rs 186.1 crore.
• Ebitda rose 8.3 percent to Rs 258.9 crore.
• Margin at 34.8 percent versus 31.8 percent.

• Yes Bank: Shareholders approved increasing authorised share capital of the bank. The also gave a nod to authorize capital raising through the issue of equity shares or other convertible securities.
• UPL said the tax department looking to review the company’s global operations.
• L&T said that it has completed the metro project at Hyderabad.
• Tata Motors: JLR to cut production half or one day a week at its Solihull and Castle Bromwich plants to achieve the necessary operational efficiencies and align production to current demand conditions. (Bloomberg)
• Lumax Auto Technologies signed a JV deal with Japan’s Yokowo to manufacture and supply antennas and other vehicle communication products. The company also signed MoU with China’s Ananda Drive Techniques for the manufacturing of electric vehicle products.
• J&K Bank: Board approved raising Rs 500 crore through preferential share allotment.
• SH Kelkar: Board approved the closure of fragrance ingredients manufacturing facility and research activity in the Netherlands.
• Biocon: Bengaluru NCLT approved amalgamation of Biocon Research with Biocon Biologics.
• NHPC: Board approved raising Rs 1,000 crore via debt.
• Ashok Leyland to acquire a 7 percent stake in its arm Hinduja Leyland Finance for Rs 390.5 crore.
• UltraTech Cement to consider raising via NCDs aggregating to Rs 250 crore on Feb. 12.
• Hindustan Aeronautics signed agreements with SC Rosoboronexport, Indian Coast Guard, IIT Kanpur and Turbo Aviation for various services.
• Bank of India reduced MCLR by 10 basis points for maturities up to six months. Reduced interest rates on housing loan to 8 percent per annum and vehicle loan to 8.50 percent per annum. All reductions to be effective from Feb. 10.
• IIFL Securities received approval for its maiden Alternative Investment Fund.
• Whirlpool: Board appointed Vishal Bhola as managing director of the company till April 2025.
• Spandana Sphoorty Financial: JM Financial reduced its stake from 6.01 percent to 3.36 percent in the company on Feb. 5.
• PI Industries to consider raising capital on Feb. 12
• Neuland Laboratories says U.S. FDA inspected a unit of Sangareddy facility and issued form 483 with two observations.
• Oriental Bank of Commerce reduced MCLR across various tenors with effect from Feb. 10. One Month MCLR at 7.5 percent.
• OM Metals Infra Projects in a consortium bagged Rs 263.1 order from the Government of Madhya Pradesh.
• Reliance Capital said the servicing of interest or principal of non-convertible debentures due on Feb. 7 is delayed.
• Indiabulls Housing Finance says rating agency CRISIL has revised the long-term rating of the company to “CRISIL AA” with a stable outlook. The rating agency cited challenges faced in accessing diverse sources of funding following the situation for non-banks since September 2018
• Cipla expands women's health portfolio through the acquisition of four key brands from Wanbury. These brands, previously commercialised by Wanbury, have a market size of Rs 3,100 crore in India with a sales value of Rs 59.6 crore.
• Shilpa Medicare receives zero observations after the inspection of its API units (I & II) located in Karnataka by U.S.FDA.
• Mastek to acquire the middle east business of evolutionary systems Arabia FZ LLC through its group company for $65 million.

• As investors grapple with assessing the impact of the virus on global growth, China’s central bank on Monday will offer its first batch of special re-lending funds as it seeks to combat the outbreak.
• Treasury yields dipped, extending losses seen on Friday. The yen and gold advanced. The yuan traded weaker than 7 per dollar offshore. West Texas crude fell below $50 a barrel.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 12,082.50 as of 8:30 a.m.

Equities opened lower in South Korea, Japan and Australia, while futures on the S&P 500 Index declined about 0.5 percent. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.36 percent to 12,041 as of 6:50 a.m.

As investors grapple with assessing the impact of the virus on global growth, China’s central bank on Monday will offer its first batch of special re-lending funds as it seeks to combat the outbreak.

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