ICICI Bank, HUL Help Sensex, Nifty Recover After Worst Fall Of 2020

Indian equities recovered after posting their worst single-day decline of the year on Saturday, led by the gains in ICICI Bank Ltd. and Hindustan Unilever Ltd.

The S&P BSE Sensex rose 0.34 percent to close at 39,872.31 and the NSE Nifty 50 rose 0.53 percent to end at 11,724.05.

The broader markets represented by the NSE Nifty 500 Index fell 0.46 percent on Monday. The market breadth was tilted in favour of sellers. About 1,093 stocks declined and 723 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by the NSE ended higher, led by the NSE Nifty Media Index’s 1.7 percent gain. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral loser, down 2.46 percent.

Karur Vysya Bank

• Stock rose as much as 3.5 percent to Rs 47.60.
• Trading volume was 10 times its 20-day average.

ITC

• Stock fell as much as 6.4 percent to Rs 205.
• Trading volume was almost eight times its 20-day average.

SBI Life Insurance

• Stock fell as much as 4.1 percent to Rs 856.65.
• Trading volume was almost seven times its 20-day average.

KPR Mill

• Stock fell as much as 7.1 percent to Rs 630.70.
• Trading volume was more than five times its 20-day average.

GlaxoSmithKline Consumer Healthcare

• Stock rose as much as 5.3 percent to Rs 9,470.45.
• Trading volume was more than six times its 20-day average.

Amara Raja Batteries

• Stock rose as much as 6.5 percent to Rs 791.
• Strong operational performance.
• Margins expand by 130 basis points to 16.2 percent on lower raw material costs.
• Replacement and industrial segment performed well and export to countries in Indian Ocean Rim geography continued to gain traction.
• Steep fall seen in OEM revenue and lower realizations, but still there was revenue growth of 3 percent.

Thyrocare Technologies

• Stock rose as much as 6.6 percent to Rs 569.15 after December quarter results.
• Revenue rose 9.9 percent to Rs 105.8 crore.
• Net profit rose 36.1 percent to Rs 27.5 crore.
• Ebitda rose 23 percent to Rs 43.8 crore.
• Margin stood at 41.4 percent versus 37 percent.

Escorts

• Stock rose as much as 10.1 percent to Rs 852.20.
• Fresh longs seen with high open interest of 34 percent.
• Trading volume was three times its 20-day average.

Ahluwalia Contracts

• Stock swung from a fall of as much as 3.3 percent to gain as much as 4.6 percent.
• The company received EPC order for worth Rs 1,254 crore from J&K Central Public Works Department.
• Order inflow for 2019-20 stands at Rs 3,240 crore.

Shares of IDBI Bank fell as much as 8.5 percent, the most since Aug. 28, 2019, to Rs 34.10. The scrip had advanced 10.2 percent on Saturday.

The proposed to sell the balance stake IDBI Bank to private, retail and institutional investors through the stock exchange, Finance Minister Nirmala Sitharaman said in her Budget speech on Saturday.

Of the shares traded, 51 percent were at the ask price and 43 percent were at the bid, according to Bloomberg data.

Shares of Piramal Enterprises fell for the fourth consecutive trading session. The stock fell as much sa 7.9 percent to Rs 1,336.55, the lowest since Oct. 17, 2019.

The company is scheduled to release its December quarter results tomorrow. The scrip traded at 12.4 times its estimated earnings per share compared to a 17.6 times for the two-year historical average, Bloomberg data showed.

Shares of Rashtriya Chemicals & Fertilizers fell as much as 7.1 percent to Rs 46.25. The stock declined for the fourth consecutive trading session.

Finance Minister Nirmala Sitharaman said that the government shall encourage balanced use of all kinds of fertilisers including the traditional organic and other innovative fertilisers.

“This is a necessary step to change the prevailing incentive regime, which encourages excessive use of chemical fertilisers,” Sitharaman said in her Budget speech on Saturday.

Shares of Just Dial extended declines for the fourth consecutive trading session. The stock fell as much a 8.6 percent, the most since July 22, 2019, to Rs 500.20, the lowest since Nov. 15, 2019.

The stock declined 15 percent in the past five days and fell 9.1 percent in the past 30 days. The scrip traded at 13 times its estimated earnings per share for the coming year, according to Bloomberg data.

The Relative Strength Index was below 70, indicating that the stock may be overbought, Bloomberg data showed.

U.S. equity futures power higher and European stocks were steady as investors took in stride a sell-off in Asia, where Chinese shares plunged as markets there reopened amid the worsening coronavirus outbreak.

• Futures on the S&P 500 Index increased 0.4 percent.
• Nasdaq 100 Index futures gained 0.6 percent.
• The Stoxx Europe 600 Index edged up 0.1 percent.
• The MSCI All-Country World Index decreased 0.2 percent.
• The MSCI Emerging Market Index sank 0.7 percent.

Get your daily fix of global markets here.
Source: Bloomberg

Nifty’s 11,800 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 Feb. 6, fell 42.8 percent to Rs 25.85. About 11.92 lakh shares were added to the open interest which stood at over 26.06 lakh shares.

Shares of Dixon Technologies rose as much as 10.1 percent, the most since Nov. 14, 2019, to hit an all-time high at Rs 4,895. The stock had declined 4.5 percent on Saturday.

Trading volume was more than two times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

Shares of Nestle India extended gains for the second consecutive trading session and rose as much as 6.3 percent, the most since Sept. 20, to hit an all-time high at Rs 16,500.

“Investors funnelled money into shares of the consumer-oriented companies after the Union Budget looked unlikely to spur a quick turnaround in the GDP growth,” according to Bloomberg report.

“There is a tilt towards defensive, predictable stocks that have been consistent performers. Asian Paints have shown double-digit volume growth even in a challenging environment. Hindustan Unilever Ltd. has been able to outperform and deal with the slowdown well,” Bloomberg reported quoting Antique Stock Broking analyst Abhijeet Kundu.

The stock was the best performer on the NSE Nifty 50 Index and NSE Nifty FMCG Index.

A two-judge Supreme Court panel headed by Deepak Gupta seeks plan from brothers Malvinder and Shivinder Singh for payments to Daiichi Sankyo Co.

• Supreme Court adjourns hearing on IHH-Fortis sale case to March 16.
• Supreme Court seeks stand from Daiichi, Fortis on Indian markets regulator SEBI’s plea.
• Supreme Court also seeks Daiichi, Fortis stand on plea by a retail shareholder for open offer.

Source: Bloomberg

Shares of TVS Motor Company fluctuated between gains and losses to trade 1.3 percent higher at Rs 470.05 after the company released its January sales data.

The company’s sales fell 16.9 percent to 2,34,920 units last month, the two-and-three-wheeler maker said in a stock exchange filing.

Key Sales Highlights (YoY)

• Total two-wheeler registered sales dropped 18.1 percent to 2,20,439 units.
• Domestic two-wheeler sales fell 28.7 percent to 1,63,007 units.
• Motorcycle sales fell 15.2 percent to 94,367 units.
• Scooter sales fell 15.1 percent to 72,383 units.
• Three-wheeler sales rose 8 percent to 14,481 units.
• Two-wheeler exports rose 41 percent to 57,432 units.
• Total exports rose 34 percent to 70,784 units.

Shares of Godrej Properties rose as much as 8.1 percent to Rs 1,069.90 after the company announced December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 12.6 percent to Rs 382.8 crore.
• Net profit up 9.4 percent to Rs 45.5 crore.
• Ebitda profit at Rs 42.3 crore versus Ebidta loss at Rs 38.7 crore.
• Other income up 49 percent to Rs 134.7 crore.

Indian equities were volatile and struggled to gain momentum.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,704 and 11,658.95. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

That came as the India NSE Nifty Volatility Index fell as much as 6.7 percent.

Shares of Bharti Infratel extended declines for the second consecutive trading session. The stock fell as much as 8 percent, the most since Jan. 17, to Rs 227.30.

The scrip declined 22 percent in the past 12 months compared to a 9.1 pecent gain in the Sensex. Bharti Infratel traded at 14 times its estimated earnings per share for the coming year, Bloomberg data showed.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 1.45 percent gain. On the flipside, the NSE Nifty PSU Bank Index was the only sectoral loser, down 0.9 percent.

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

The S&P BSE Sensex rose 0.59 percent to 39,969 and the NSE Nifty 50 rose 0.67 percent to 11,739. The broader markets represented by the NSE Nifty 500 Index rose 0.72 percent.

The mid- and the small-cap index represented by the NSE Nifty MidCap 100 and the NSE Nifty SmallCap 100 rose 1.1 percent and 0.43 percent respectively.

The budget has been a non-event and belied the lofty expectations from an equity market perspective, according to Motilal Oswal.

“The market’s focus should revert to fundamentals, viz. corporate earnings growth, global cues around the spread of Corona Virus and its potential impact on global growth once the Budget fine print is absorbed,” the homegrown brokerage said in a report.

Shares of Ashok Leyland fell as much s 3.1 percent to Rs 74.80 after the company released its January sales data.

The company’s sales fell 40 percent year-on-year to 11,850 units last month, according to its stock exchange filing.

Key Sales Highlights (YoY)

• Domestic medium and heavy commercial truck sales fell 60 percent to 4,837 units.
• Domestic medium and heavy commercial bus sales rose 30 percent to 2,112 units.
• Total domestic medium and heavy commercial vehicle sales declined 49 percent to 6,949 units.
• Domestic light commercial vehicle sales fell 20 percent to 3,901 units.
• Total domestic vehicle sales fell 41 percent to 10,850 units.

Sales Including Exports (YoY)

• Total medium and heavy commercial truck sales fell 60 percent to 5,072 units.
• Total medium and heavy commercial bus sales rose 42 percent to 2,682 units.
• Total medium and heavy commercial vehicle sales fell 47 percent to 7,794 units.
• Total light commercial vehicle sales fell 19 percent to 4,096 units.

Nifty’s 11,700call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Feb. 6, rose 3.9 percent to Rs 78.45. About 5.31 lakh shares were added to the open interest which stood at over 14.76 lakh shares.

The Markit India Manufacturing Purchasing Managers’ Index rose to 55.3 in December from 52.7 in November, according to a statement.

This was the 30th straight month when India’s manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Indian equities were volatile, after fluctuating between gains and losses in the opening trade.

The S&P BSE Sensex rose 0.45 percent to 39,917 and the NSE Nifty 50 rose 0.48 percent to 11,714. The broader markets represented by the NSE Nifty 500 Index fell 0.55 percent.

That came as the India NSE nifty Volatility Index fell as much as 6.7 percent.

The markets were disappointed as the expectations were very high, IIFL Co-Founder and Chairman Nirmal Jain said, adding that there were a of incentives for the foreign investors in the Budget.

“Dividend Distribution Tax has been abolished and therefore obviously foreign investors will benefit but then it becomes fully taxable in the hands of shareholders which is not the right way of doing it because shareholders are also owners and as owners of the company they pay tax on profits and it gets taxed again,” Jain said in a mailed statement.

“This might change the dividend culture of many companies, it will impact the private sector investment which has been very sluggish for the last 2 to 3 years at least,” he added.

Sobha (Q3, YoY)

• Stock fell as much as 3.1 percent to Rs 413.
• Revenue rose 12.1 percent to Rs 883.2 crore. (Estimate: Rs 869.9 crore)
• Net profit rose 4.9 percent to Rs 73.2 crore. (Estimate: 75.9 crore)
• Ebitda rose 80.3 percent to Rs 286.6 crore. (Estimate:Rs 196.5 crore)
• Margin stood at 32.5 percent versus 20.2 percent.

Garden Reach Shipbuilders & Engineers (Q3, YoY)

• Stock fell as much as 17.5 percent to Rs 163.50.
• Revenue fell 24.4 percent to Rs 369.6 crore.
• Net profit fell 37.6 percent to Rs 29.5 crore.
• Ebitda loss at Rs 1.2 crore versus Ebitda profit of Rs 41.1 crore.

Relaxo Footwears (Q3, YoY)

• Stock fell as much as 3.8 percent to Rs 705.
• Revenue rose 8.8 percent to Rs 599.9 crore.
• Net profit rose 52.2 percent to Rs 54.2 crore.
• Ebitda rose 40.1 percent to Rs 101.7 crore.
• Margin stood at 17 percent versus 13.2 percent.

Mahindra Holidays & Resorts (Q3, YoY)

• Stock fell as much as 3.7 percent to Rs 219.95.
• Revenue fell 1.8 percent to Rs 588.3 crore.
• Net profit fell 84.1 percent to Rs 4.9 crore.
• Ebitda rose 47.6 percent to Rs 88.1 crore.
• Margin stood at 15 percent versus 10 percent.

Thyrocare Technologies (Q3, YoY)

• Stock rose as much as 6.6 percent to Rs 569.15.
• Revenue rose 9.9 percent to Rs 105.8 crore.
• Net profit rose 36.1 percent to Rs 27.5 crore.
• Ebitda rose 23 percent to Rs 43.8 crore.
• Margin stood at 41.4 percent versus 37 percent.

Tata Motors (YoY)

• Stock fell as much as 2.1 percent to Rs 162.05.
• Domestic sales fell 18 percent to 45,242 units.
• Commercial vehicles sales fell 16 percent to 33,860 units.
• Passenger vehicle sales fell 22 percent to 13,894 units.

Hero MotoCorp (YoY)

• Stock fell as much as 2.7 percent to Rs 2,381.45.
• Two-wheeler sales fell 14 percent to 501,622 units.

Eicher Motors (YoY)

• Stock fell as much as 2.8 percent to Rs 19,511.65.
• Motorcycle sales fell 13 percent to 63,520 units.
• VECV sales fell 6.1 percent to 5,544 units.

SML Isuzu (YoY)

• Stock rose as much as 2.9 percent to Rs 558..
• Sales rose 11.5 percent to 1,112 units.

Shares of the oil marketing companies halted a four-day losing streak.

That came after the Brent crude declined for the third consecutive trading session. It benchmark fell as much as 4.7 percent to $55.42 a barrel.

Shares of Shakti Pumps (India) fell as much as 5.9 percent to Rs 273.30. The scrip had advanced nearly 20 percent to a four-month high at Rs 292.70 on Saturday.

The government plans to promote 15 lakh farmers to set up solar-powered pumps, Sitharaman said in her Budget speech on Saturday. “The government will help 15 lakh farmers to solarise grid-connected farm. Farmers can convert barren land into solar farms,” she said.

Trading volume was more than 14 times its 20-day average, Bloomberg data showed. Shakti Pumps advanced 21 percent in the past five days and rallied 41 percent in the past 30 days.

Indian equities fluctuated between gains and losses in the opening trade.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,704 and 11,658.95. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

The market breadth was tilted in favour of sellers. About 792 stocks declined and 549 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 0.6 percent gain. On the flipside, the NSE Nifty FMCG Index was the top sectoral loser, down 0.6 percent.

Index Futures

• Nifty February futures closed at 11,654.9, discount of 6.9 points versus premium of 32 points.
• Nifty February futures OI up 22 percent, adds 25.5 lakh shares in OI.
• Nifty Bank February futures closed at 29,873.4, premium of 52 points versus 103.7 points.
• Nifty Bank futures OI up 33 percent, adds 3.5 lakh shares in OI.

Options

• Nifty PCR at 0.85 versus 1.04 (across all series)

Nifty Weekly Expiry: Feb 6

• Max OI on call side at 12,200 (31.6 lakh shares)
• Max OI on put side at 11,500 (14.9 lakh shares)
• OI addition seen at 12,000C (+18.2 lakh shares), 11,900C (+15.2 lakh shares), 11,800C (+12.4 lakh shares)

Nifty Monthly Expiry: Feb. 27

• Max OI on call side at 12,500 (20.2 lakh shares)
• Max OI on put side at 12,000 (25.9 lakh shares)

• Precot Meridian to move into ASM Framework
• Karda Constructions, Premier Polyfilm, K.M.Sugar Mills, Mahindra EPC Irrigation to move out of short term ASM Framework
• JBF Industries to move into short term ASM Framework
• Suven Life Sciences price band revised to 10 percent
• Sadhana Nitro Chem, Inditrade Capital price band revised to 5 percent

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.42 percent to 71.65 against the greenback.

Indian equities are set to open lower.

The S&P BSE Sensex fell 0.3 percent to 39,641 and the NSE Nifty 50 fell 0.13 percent to 11,649.

• Coal India: January production rose 10.3 percent at 63.11 MT versus 57.21 MT. Offtake rose 6.9 percent at 56.05 MT versus 52.44 MT.
• Infoedge: IE Venture Fund to invest Rs 25.2 crore in Qyuki Digital Media.
• Maharashtra Seamless: Sanjiv Goyal resigned as chief financial officer of the company with effect from Jan. 31.
• Muthoot Capital Services completed securitisation of Rs 173.24 crore.
• Indian Bank revised MCLR across various tenors with effect from Feb. 3. One-month MCLR at 7.95 percent and one-year MCLR at 8.25 percent.

Tata Motors

• Domestic sales fell 18 percent to 45,242 units.
• Commercial vehicles sales fell 16 percent to 33,860 units.
• Passenger vehicle sales fell 22 percent to 13,894 units.

Hero MotoCorp

• Two-Wheeler Sales fell 14 percent to 501,622 units.

Eicher Motors

• Motorcycle sales fell 13 percent to 63,520 units.
• VECV sales fell 6.1 percent to 5,544 units.

SML Isuzu

• Sales rose 11.5 percent to 1,112 units.

Earnings Reaction To Watch

Sobha (Q3, YoY)

• Revenue rose 12.1 percent to Rs 883.2 crore. (Estimate: Rs 869.9 crore)
• Net profit rose 4.9 percent to Rs 73.2 crore. (Estimate: 75.9 crore)
• Ebitda rose 80.3 percent to Rs 286.6 crore. (Estimate:Rs 196.5 crore)
• Margin stood at 32.5 percent versus 20.2 percent.

Garden Reach Shipbuilders & Engineers (Q3, YoY)

• Revenue fell 24.4 percent to Rs 369.6 crore.
• Net profit fell 37.6 percent to Rs 29.5 crore.
• Ebitda loss at Rs 1.2 crore versus Ebitda profit of Rs 41.1 crore.

Relaxo Footwears (Q3, YoY)

• Revenue rose 8.8 percent to Rs 599.9 crore.
• Net profit rose 52.2 percent to Rs 54.2 crore.
• Ebitda rose 40.1 percent to Rs 101.7 crore.
• Margin stood at 17 percent versus 13.2 percent.

Mahindra Holidays & Resorts (Q3, YoY)

• Revenue fell 1.8 percent to Rs 588.3 crore.
• Net profit fell 84.1 percent to Rs 4.9 crore.
• Ebitda rose 47.6 percent to Rs 88.1 crore.
• Margin stood at 15 percent versus 10 percent.

Thyrocare Technologies (Q3, YoY)

• Revenue rose 9.9 percent to Rs 105.8 crore.
• Net profit rose 36.1 percent to Rs 27.5 crore.
• Ebitda rose 23 percent to Rs 43.8 crore.
• Margin stood at 41.4 percent versus 37 percent.

Earnings To Watch

• Tata Chemicals
• Ujjivan Financial Services
• Godrej Properties
• GlaxoSmithKline Pharmaceuticals
• Affle (India)
• Century Plyboards
• Shalby
• Shriram Transport Finance
• Welspun Corp
• Speciality Restaurants
• SREI Infrastructure Finance
• SRF
• Srikalahasthi Pipes
• Deepak Nitrite
• Dhampur Sugar Mills
• Dr. Lal Path Labs
• Fortis Malar Hospitals
• Galaxy Surfactants
• AstraZeneca Pharma
• Bayer Cropscience
• BF Utilities
• Borosil Glass Works
• Garware Technical Fibres
• Gujarat Borosil
• Hawkins Cookers
• Honeywell Automation
• Housing & Urban Development Corporation
• HSIL
• IG Petrochemicals
• JBM Auto
• Mangalore Refinery and Petrochemicals
• Orient Abrasives
• Saksoft, Savita Oil Technologies
• Triveni Turbine
• Unichem Laboratories
• White Organic Agro

• 10:30 a.m.: Markit India Manufacturing PMI for January, prior 52.7.

• The NSE Nifty 50 Index clocked its worst Budget-day returns in at least 11 years after the Budget failed to impress investors. The Bombay Stock Exchange and the National Stock Exchange, which are otherwise closed on a Saturday, were open to trading on Feb. 1 as Finance Minister Nirmala Sitharaman presented Union Budget 2020-21 in Parliament.
• Brent crude declined for the third consecutive trading session. It fell as much as 4.7 percent to $55.42 a barrel.

Get your daily fix of global markets here.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded at 11,685.50 as of 8:16 a.m.

Asian stocks pared losses and U.S. futures rose Monday, despite an opening slide in Chinese shares as traders returned from an extended holiday.

Stocks in Shanghai had opened 9 percent lower amid the worsening coronavirus outbreak, while local iron ore and copper futures fell by the daily limit. Equities came off their lows in Tokyo, Seoul and Sydney and reversed losses in Hong Kong.

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