Sensex, Nifty Halt Record Closing Streak As IndusInd Bank, Infosys Drag

Indian stocks halted their two-day record closing streak, led by the declines in IndusInd Bank and Reliance Industries Ltd.

The S&P BSE Sensex fell 0.19 percent to close at 41,872.73 and the NSE Nifty 50 fell 0.18 percent to end at 12,340.35. The broader markets represented by the NSE Nifty 500 Index, however, rose 0.11 percent.

The market breadth was tilted in favour of buyers. About 1,095 stocks advanced and 684 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Realty Index’s 1.3 percent higher. On the flipside, the Private Bank Index was the top sectoral loser, down 0.87 percent.

Rashtriya Chemicals & Fertilizers

• Stock rose as much as 13.1 percent, the most since Oct. 30, 2019, to Rs 59.90.
• Government plans to decontrol urea prices, according to Reuters report.

Capacite Infra Projects

• Stock rose as much as 5.6 percent to Rs 204.95.
• Received Rs 407.2 crore construction contract for EPC Project in Mumbai

L&T Infotech

• Shares rose 2.4 percent to Rs 1,923 after announcing December quarter results. The stock had risen as much as 6.7 percent earlier.
• Net profit up 5 percent to Rs 377 crore (Bloomberg Estimate: Rs 378 crore)
• Revenue up 5 percent to Rs 2,811 crore (Bloomberg Estimate: Rs 2,699 crore)
• EBIT up 9 percent to Rs 457 crore (Bloomberg Estimate: Rs 436 crore)
• EBIT Margin at 16.3 percent versus 15.6 percent (Bloomberg Estimate: 16.2 percent)

Castrol India

• Stock rose as much as 4.4 percent to Rs 133.90.
• Fresh longs seen with high open interest of 21 percent.
• Trading volume was eight times its 20-day average.

Nifty’s 12,300 put 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. 16, rose 9.8 percent to Rs 25.70. About 1.36 shares were removed from the open interest which stood at over 30.26 lakh shares.

United Bank of India

• Stock rose as much as 10.9 percent to Rs 9.60.
• Trading volume was more than 11 times its 20-day average.

Mindtree

• Stock rose as much as 4.3 percent to Rs 901.70.
• Trading volume was almost 11 times its 20-day average.

Gujarat Pipavav Port

• Stock rose as much as 7.9 percent to Rs 98.60.
• Trading volume was more than 10 times its 20-day average.

• IDFC First Bank: About 10 lakh shares of the company changed hands in a large trade.
• Info Edge: About 23.1 lakh shares of the company changed hands in a large trade.

Source: Bloomberg

Shares of Rashtriya Chemicals & Fertilizers rose as much as 13.1 percent, the most since Oct. 30, 2019, to Rs 59.90.

The stock returned 6.8 percent in the past five days and advanced 15 percent in the past 30 days, according to Bloomberg data.

Meanwhile shares of National Fertilizers and Chambal Fertilizers rallied as much as 16 percent and 8 percent respectively

U.S. and European equity futures dipped and Asian stocks retreated as traders mulled signs that Sino-American tensions will extend beyond the scheduled signing of the phase-one trade deal.

• Futures on the S&P 500 fell 0.2 percent
• Contracts on the Euro Stoxx 50 Index dipped about 0.1 percent.
• Japan’s Topix index declined 0.5 percent at the close.
• Hong Kong’s Hang Seng Index fell 0.6 percent.
• The Shanghai Composite slipped 0.5 percent.
• South Korea’s Kospi index retreated 0.4 percent.
• Australia’s S&P/ASX 200 Index added 0.5 percent.

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Source: Bloomberg

The markets could see a ‘smart recovery’ during the second half of today’s trading session if the Nifty holds 12,300 levels, according to TradingBells’ Senior Analyst Santosh Meena.

“The Nifty is trying to respect the support of 12,300 level where if manages to hold this level then we can expect a smart recovery in the second half,” Meena said in a mailed statement.

Shares of Larsen & Toubro Infotech rose 2.4 percent to Rs 1,923 after announcing December quarter results. The stock had risen as much as 6.7 percent earlier.

Key Earnings Highlights (Q3, QoQ)

• Net profit up 5 percent to Rs 377 crore (Bloomberg Estimate: Rs 378 crore)
• Revenue up 5 percent to Rs 2,811 crore (Bloomberg Estimate: Rs 2,699 crore)
• EBIT up 9 percent to Rs 457 crore (Bloomberg Estimate: Rs 436 crore)
• EBIT Margin at 16.3 percent versus 15.6 percent (Bloomberg Estimate: 16.2 percent)

Shares of Adani Gas extended gains for the third consecutive trading session. The stock rose as much as 4.8 percent to Rs 177.40.

The company appointed Total SA’s India head Alexis Thelemaque as an additional director in the board.

The stock returned 3.7 percent in the past five days and 15 percent in the past 30 days, according to Bloomberg data.

Shares of Larsen & Toubro rose as much as 0.76 percent to Rs 1,336.15.

The company secured ‘large’ orders—valued at Rs 2,500-5,000 crore—according to its classification of projects from its clients for varied businesses, according to its statement on the exchanges.

The stock resumed gains after a one-day blip.

Shares of Yes Bank halted their three-day losing streak. The stock rose as much as 4.9 percent to Rs 40.45.

The Mumbai-based lender will seek shareholder’s nod for increasing authorised share capital from Rs 800 crore to Rs 1,100 crore, and to authorise this capital raising via the issue of equity or other convertible securities, on Feb. 7.

Besides, the bank also acquired 30 percent stake in Reliance Power’s wholly-owned arm Rosa Power Supply through the invocation of a pledge of 12.73 crore shares.

The stock slumped 19 percent in the last three trading sessions.

Shares of CSB Bank halted their three-day losing streak. The stock rose as much as 4.7 pecent, the most since Jan. 7, to Rs 202.

The lender said that the regulatory restrictions imposed by the Reserve Bank of India on the opening of new branches, in view of the delayed initial public offering of shares of the Bank, have been lifted, with effect from Jan. 10. The Bank can now open new branches subject to approval from RBI.

Trading volume was almost four times its 20-day average, Bloomberg data showed. Of the shares traded, 18 percent were at the ask price and 71 percent were at the bid.

Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Private Bank Index’s 1.18 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 0.96 percent.

Nifty’s 12,300 put 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. 16, rose 76.28 percent to Rs 41.25. About 10,200 shares were removed from the open interest which stood at over 31.52 lakh shares.

Indian stocks extended opening declines.

The S&P BSE Sensex fell 0.5 percent to 41,742 to 41,744.60 and the NSE Nifty 50 fell 0.53 percent to 12,296.85. The broader markets represented by the NSE Nifty 500 Index fell 0.35 percent.

Wipro (Q3, QoQ)

• Stock fell as much as 3.5 percent to Rs 248.10.
• IT services revenue rose 2.2 percent at $2,095 million.
• Revenue rose 2.3 percent to Rs 15,470.5 crore. (Estimate: Rs 15,434 crore)
• Net profit fell 3.8 percent to Rs 2,455.9 crore. (Estimate: Rs 2,451 crore)
• EBIT was up 1.4 percent to Rs 2,650.7 crore. (Estimate: Rs 2,682 crore)
• Margin stood at 17.1 percent versus 17.3 percent (Estimate: 17.4 percent)

Mindtree (Q3, QoQ)

• Stock rose as much as 3.9 percent to Rs 897.70.
• $ Revenue rose 1.5 percent to $275.2 million.
• Revenue increased 2.7 percent to Rs 1,965.3 crore. (Estimate: Rs 1,971 crore)
• Net profit rose 45.9 percent to Rs 197 crore. (Estimate: Rs 163 crore)
• Ebitda rose 23 percent to Rs 306 crore. (Estimate: Rs 278cr)
• Margin stood at 15.6 percent versus 13 percent. (Estimate: 14.1 percent)

Tata Steel BSL (Q3, YoY)

• Stock fell as much as 2.7 percent to Rs 31.10.
• Revenue rose 3.1 percent to Rs 5,038.1 crore.
• Net loss was at Rs 501.5 crore versus Net loss of Rs 239.7 crore.
• Ebitda fell 72.4 percent to Rs 277.8 crore.
• Margin was at 5.5 percent versus 20.6 percent.

Shares of Canara Bank fell as much as 2.8 percent to Rs 209.60.

The public sector lender called off the divestment process of its entire stake in Can Fin Homes, which was under the progress. The bank has 30 percent stake in Can Fin Homes.

Shares of Adani Green Energy hit their lower circuit of 5 percent for the fourth consecutive trading session. Prior to Jan. 10, the stock had risen for nine consecutive trading sessions.

The stock declined 14 percent in the past five days and advanced 43 percent in the past 30 days, according to Bloomberg data.

Shares of DFM Foods rose as much as 13.2 percent, the most since Dec. 20, 2019, to Rs 286.

About 2.7 crore shares of the company changed hands in a in pre-market special window on Bombay Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.

Trading volume was more than 200 times its 20-day average, according to Bloomberg data. The stock returned 6.1 percent in the past five days and 11 percent in the past 30 days.

Shares of IndusInd Bank fell as much as 3.2 percent to Rs 1,435. The stock was the worst performer on Sensex and Nifty.

The company had reported is December quarter results yesterday.

Key Earnings Highlights (Q3)

• Net profit at Rs 1,300 crore (Bloomberg Estimate: Rs 1,400 crore)
• Net interest income at Rs 3,074 crore (Bloomberg Estimate: Rs 3,041 crore)
• Gross NPA at 2.18 percent.
• Net NPA at 1.05 percent.
• Provisions at Rs 1,043.45 crore.
• The year-on-year figures aren’t comparable due to IndusInd Bank’s merger with Bharat Financial Inclusion.

Indian stocks opened lower after gaining for four consecutive trading sessions.

The S&P BSE Sensex fell 0.23 percent to 41,858 and the NSE Nifty 50 fell 0.27 percent to 12,328. The broader markets represented by the NSE Nifty 500 Index fell 0.19 percent.

The market breadth, however, was tilted in favour of buyers. About 755 stocks advanced and 680 shares declined on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 0.83 percent gain.

Index Futures

• Nifty January futures closed at 12,397, premium of 34.7 points versus 32.6 points.
• Nifty January futures open interest up 2 percent, adds 2.7 lakh shares in open interest.
• Nifty Bank January futures closed at 32,169, premium of 97.4 points versus 64.6 points.
• Nifty Bank January futures open interest down 3 percent, sheds 41,000 shares in open interest.

Options

• Nifty PCR at 1.67 versus 1.63 (across all series).

Nifty Weekly Expiry: Jan. 16

• Max open interest on call side at 12,400 (17.1 lakh shares).
• Max open interest on put side at 12,300 (31.6 lakh shares).
• open interest addition seen at 12,300P (+12 lakh shares), 12,350P (+8.8 lakh shares), 12,400C (+2.2 lakh shares).
• Open interest shedding seen in 12,300C (-2.1 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (26.8 lakh shares).
• Max open interest on put side at 12,000 (44.3 lakh shares).

• Dixon Technologies to meet Max Life Insurance and Quantum Advisors on Jan. 16.
• Mahindra Logistics to meet Ocean Dial AMC, Axis Capital and other investors on Jan. 16.
• Tata Steel to meet Ambit Capital on Jan. 16.

• Security & Intelligence Services ex-date for share split at 2:1.
• Bharat Road Network, Emami Paper Mills, N R Agarwal Industries, Patel Engineering to move into short term ASM Framework.
• Gallantt Metal, Gallantt Ispat, Suzlon Energy, Zuari Global, Jaiprakash Power Ventures, Supreme Infrastructure to move out of short term ASM Framework.
• Patel Engineering price band revised to 10 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.2 percent to 71.01 against the greenback.

Indian stocks are set to open higher.

The S&P BSE Sensex rose 0.36 percent to 41,305.75 during the pre-market trade and the NSE Nifty 50 rose 0.05 percent to 12,368.05.

Earnings To Watch

• Larsen & Toubro Infotech
• Sterlite Technologies
• Reliance Industrial Infrastructure
• Tinplate
• Den Networks
• Plastiblends

Earnings Reaction To Watch

Wipro (Q3, QoQ)

• IT services revenue rose 2.2 percent at $2,095 million.
• Revenue rose 2.3 percent to Rs 15,470.5 crore. (Estimate: Rs 15,434 crore)
• Net profit fell 3.8 percent to Rs 2,455.9 crore. (Estimate: Rs 2,451 crore)
• EBIT was up 1.4 percent to Rs 2,650.7 crore. (Estimate: Rs 2,682 crore)
• Margin stood at 17.1 percent versus 17.3 percent (Estimate: 17.4 percent)

Mindtree (Q3, QoQ)

• $ Revenue rose 1.5 percent to $275.2 million.
• Revenue increased 2.7 percent to Rs 1,965.3 crore. (Estimate: Rs 1,971 crore)
• Net profit rose 45.9 percent to Rs 197 crore. (Estimate: Rs 163 crore)
• Ebitda rose 23 percent to Rs 306 crore. (Estimate: Rs 278cr)
• Margin stood at 15.6 percent versus 13 percent. (Estimate: 14.1 percent)

Tata Steel BSL (Q3, YoY)

• Revenue rose 3.1 percent to Rs 5,038.1 crore.
• Net loss was at Rs 501.5 crore versus Net loss of Rs 239.7 crore.
• Ebitda fell 72.4 percent to Rs 277.8 crore.
• Margin was at 5.5 percent versus 20.6 percent.

• Canara Bank called off the divestment process of its entire stake in Can Fin Homes, which was under the progress. The bank has 30 percent stake in Can Fin Homes.
• CSB Bank said that the regulatory restrictions imposed by the Reserve Bank of India on the opening of new branches, in view of the delayed initial public offering of shares of the Bank, have been lifted, with effect from Jan. 10. The Bank can now open new branches subject to approval from RBI.
• National Peroxide stated that expansion of its plant at Kalyan, Maharashtra is under progress and is expected to be commissioned around last week of January.
• Yes Bank will seek shareholder’s nod for increasing authorised share capital from Rs 800 crore to Rs 1,100 crore, and to authorise this capital raising via issue of equity or other convertible securities, on Feb. 7. The Bank also acquired 30 percent stake in Reliance Power’s wholly-owned arm Rosa Power Supply through invocation of a pledge of 12.73 crore shares.
• Lemon Tree Hotels launched a 65-room hotel in Rishikesh.
• Reliance Power’s promoters stake fell from 36.71 percent to 32.79 percent after an invocation of 11 crore shares (3.92 percent) made by promoter Reliance Infrastructure on Jan. 13.
• Adani Gas appointed Total SA’s India head Alexis Thelemaque as an additional director in the board.
• Godawari Power & Ispat: Tribunal dismissed a claim of Rs 94 crore made by Lauren Jyoti (EPC Contractor) against the company’s arm.
• Corporation Bank revised marginal cost of funds based lending rate across various tenors with effect from Jan. 15. One-month MCLR at 7.75 percent and one- year MCLR at 8.5 percent.
• Pidilite Industries incorporated a joint venture to carry on the business of manufacturing, processing and distribution of technical mortars and other materials used in construction.

• India to release trade data for December

• U.S. stocks retreated from all-time highs after Bloomberg reported that tariffs on billions of dollars of Chinese goods will likely stay in place until after the presidential election.
• Oil was steady in Asian trading, with a calmer geopolitical scene offset by lingering worries on the U.S.-China trade war and on the supply outlook.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.2 percent to 12,365 as of 8:20 a.m.

Asia stocks retreated amid signs that U.S.-China tensions remain high just hours before an upcoming trade deal is due to be signed Wednesday

Shares declined in Tokyo, Shanghai, Seoul and Hong Kong, while those in Sydney saw modest gains.

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