Sensex, Nifty Gain For Third Straight Day Paced By Axis Bank, BPCL

Indian equity benchmarks rose for third day in a row but capped gains amid volatility as investors awaited earnings from two major companies, Reliance Industries and Hindustan Unilever, which were scheduled to report earnings today.

The S&P BSE Sensex rose 0.15 percent or 53 points to 36,374 and the NSE Nifty 50 Index climbed 0.14 percent or 15 points to 10,905.

Eleven of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Realty Index’s 1.1 percent gain. On the flipside, S&P BSE Healthcare Index was top loser, down 1 percent.

Shares of the Kochi-based stock broker fell as much as 5.71 percent, the most in over a month, to Rs 44.55 after its profit halved in December quarter.

Key earnings highlights:

• Revenue declined 25 percent to Rs 68.29 crore versus Rs 91.28 crore (YoY)
• Net profit dropped 51 percent to Rs 10.22 crore versus Rs 20.87 crore (YoY)

Shares of the Ahmedabad-based software services company swung between gains and losses after it reported December quarter earnings.

Key earnings highlights:

• Net profit at Rs 26.5 crore versus Rs 18.43 crore (YoY)
• Revenue at Rs 265 crore versus Rs 209.51 crore (YoY)

Shares of the Mumbai-based airline operator reversed losses and rose as much as 7.45 percent to Rs 290 after sources told BloombergQuint that Etihad Airways PJSC along with its partners has offered to infuse Rs 800-1,000 crore equity in Jet Airways.

• Etihad has also sought for removal of Naresh Goyal from Jet Airways board.
• Naresh Goyal is in separate discussions to invest Rs 700 crore equity in Jet Airways to retain his board position.
• Lenders still assessing plans and await details of source of funding in both offers.

Shares of the textile maker fell as much as 5.63 percent to Rs 39.40 after its profit declined in December quarter.

Key earnings highlights:

• Revenue declined 57 percent to Rs 35.10 crore versus Rs 81.80 crore (YoY)
• Net profit fell 40 percent to Rs 61.28 crore versus Rs 10.32 crore (YoY)

Shares of the Mukesh Ambani-led company erased gains and fell as much as 0.49 percent to Rs 1,130 ahead of December quarter earnings.

Here's what to expect from Reliance Jio in December quarter (BloombergQuint estimates, standalone QoQ):

• Revenue seen rising 13 percent to Rs 10,449 crore versus Rs 9,240 crore.
• EBITDA seen rising 13.7 percent to Rs 4,062 crore versus Rs 3,572 crore.
• EBITDA margin at 38.9 percent versus 38.7 percent.
• Net profit seen rising 15.7 percent up to Rs 788 crore versus Rs 681 crore.
• Average revenue per user (ARPU) seen declining 1.5 percent to Rs 130 versus Rs 132.

• ITC has 25 lakh shares change hands in a block deal. Stock down 0.7 percent at Rs 292.

Buyers and sellers were not immediately known

Source: Bloomberg

Indian equity benchmarks erased gains led by declines in State Bank of India, Infosys, ITC and Yes Bank.

The Sensex fell 12 points to 36,309 and the NSE Nifty 50 Index declined 6 points to 10,884.

From intraday high levels Sensex declined as much as 171 points and Nifty 50 Index touched high of 10,929.25 and low of 10,882.25.

The overall market breadth turned bearish as 1,332 shares were declining while 994 were advancing on the BSE.

Shares of the Kerala-based private sector lender fell as much as 1.15 percent to Rs 90.15 after its asset quality deteriorated in December quarter.

Key earnings highlights:

• Net interest income up 13.4 percent at Rs 1,077.3 crore versus Rs 950 crore (YoY)
• Net profit up 28.3 percent at Rs 333.6 crore versus Bloomberg estimate of Rs 316 crore (YoY)
• Provisions at Rs 190.1 crore versus Rs 162.4 crore (YoY); Rs 288.8 crore (QoQ)
• Gross non-performing assets as a percentage of total advances at 3.14 percent versus 3.11 percent (QoQ)
• Net non-performing assets at 1.72 percent versus 1.78 percent (QoQ)

• Brigade Enterprises: The Bengaluru-based real estate developer rose as much as 8.46 percent to Rs 226.30. Trading volume was more than 20 times its 20-day average.
• Sonata Software: The Bengaluru-based software services company rose as much as 8.2 percent, the most in over two months, to Rs 332. Trading volume was more than 20 times its 20-day average.
• ITI: The Bengaluru-based telecom equipment maker rose as much as 4.47 percent to Rs 117. Trading volume was more than 13 times its 20-day average.
• Sundram Fasteners: The Chennai-based nuts and bolts maker rose as much as 1.73 percent to Rs 543.30. Trading volume was more than nine times its 20-day average.

The Bombay High Court has adjourned Kotak Mahindra Bank versus RBI case till March 12.

Kotak Mahindra Bank stock up 0.92 percent at Rs 1,217.

Nifty's 10,900 put option contract was among the most active option contracts on the National Stock Exchange.

Premium on the contract declined 6.97 percent to Rs 108.10. Over 6.75 lakh shares were added to the open interest which stood at over 29.95 lakh shares.

Click here to see the complete options chain

Shares of the Mukesh Ambani-led company rose as much as 1 percent to Rs 1,148 ahead of December quarter earnings.

Here's what to expect from RIL in Q3 (BloombergQuint estimates, standalone QoQ):

• Revenue seen declining 2.2 percent to Rs 94,074 crore versus Rs 96,167 crore.
• EBITDA seen declining 2 percent to Rs 14,596 crore versus Rs 14,892 crore.
• EBITDA margins seen flat at 15.5 percent versus 15.5 percent.
• Net profit seen declining 2.2 percent to Rs 8,665 crore versus Rs 8,859 crore.
• GRMs seen falling 12.6 percent to $8.3/barrel versus $9.5/barrel.

Indian equity benchmarks came off intraday high levels as blue-chip stocks like Infosys, Yes Bank and ITC came under selling pressure.

The S&P BSE Sensex rose 0.28 percent or 103 points to 36,425 and the NSE Nifty 50 Index advanced 0.24 percent or 26 points to 10,916.

Seventeen of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Oil & Gas Index's 1 percent gain. On the flipside, S&P BSE Industrials Index was top loser, down 0.2 percent.

Mid- and small-cap shares were witnessing mild buying interest as the S&P BSE MidCap Index rose 0.2 percent and the S&P BSE SmallCap Index gained 0.15 percent.

Shares of the country's leading FMCG company fell as much as 0.56 percent to Rs 1,762.65 ahead of December quarter earnings.

Here's what to expect from HUL in Q3 (Bloomberg consensus estimates, standalone YoY)

• Net sales seen rising 10 percent at Rs 9,447 crore versus Rs 8,590 crore
• EBITDA seen advancing 19.4 percent at Rs 2,006 crore versus Rs 1,680 crore
• EBITDA margins seen rising 170 basis points to 21.2 percent versus 19.6 percent
• Net profit seen climbing 10 percent at Rs 1,455 crore versus Rs 1,326 crore

The NSE Nifty Realty Index rose as much as 1.1 percent, led by the gains in Sobha and Brigade Enterprises.

Shares of oil marketers extended rally in today’s trade. Indian Oil Corporation Ltd. is set for its longest winning streak in early a month.

Shares of L&T Infotech rose as much as 1.1 percent to Rs 1,789

The company acquired a U.K. based consulting company Ruletronics for $ 7.48 million and expects to close the transaction within eight weeks, according to its stock exchange filing.

The stock advanced 62 percent in the past 12 months, outperforming the 4.5 percent gain in the Sensex.

About 27.4 lakh shares of Power Grid Corp changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Jet Airways extended decline for the third day and fell as much as 4.9 percent to Rs 256.40.

The company said that it is working on “various options on the debt-equity mix, proportion of equity infusion.” (More details here).

The stock advanced 6.4 percent in the past five days and rose 3.4 percent in the past 30 days.

Shares of the drugmaker fell as much as 1.4 percent to Rs 176.05, its lowest levels in December 2014.

The Relative Strength Index was 24, indicating that the stock may be oversold, Bloomberg data showed. The stock has declined 65 percent so far this year compared to a 5.1 percent advance in the Sensex.

Shares of the moulded luggage maker rose as much as 1.8 percent to Rs 521.40.

Brokerage and research firm Ambit Capital expects the company's shares to touch Rs 653 in the next 12 months, according to its research report. This is the highest price target for the stock so far among the analysts tracked by Bloomberg.

Here’s what they had to say:

• Initiated ‘Buy’ with a price target of Rs 653.
• Experienced team, investing in brand and own capacities to drive growth.
• Expect Ebitda margin to improve led by captive production, premiumisation and operating leverage.
• Near multiples don’t aptly build brand-and-opportunity confluence.
• Industry tailwinds to aid double-digit growth in volume and revenue.

Shares of Motilal Oswal Financial Services Ltd. fell as much as 6.2 percent, the most since Oct. 31, to Rs 640.

The company’s net profit during the October-December period fell 85.6 percent year-on-year to Rs 39.9 crore, according to its stock exchange filing.

Key earnings highlights (YoY)

• Revenue down 20.1 percent at Rs 647.6 crore.
• Net profit down 85.6 percent at Rs 39.9 crore.
• Declares Dividend of Rs 4 per share.
• Broking revenue down 10 percent at Rs 269.5 crore.

Trading volume was almost 30-times its 20-day average, Bloomberg data showed. The stock has declined 54 percent in the past 12 months. The scrip was the worst performer on NSE Nifty 500 Index.

Indian equity benchmarks opened higher in today's trade. The S&P BSE Sensex Index rose as much as 0.41 percent to 36,468.42 and the NSE Nifty 50 Index rose as much as 0.36 percent to 10,929.25.

The market breadth was tilted in favour of buyers. About 944 stocks advanced and 460 shares declined on National Stock Exchange.

All the sectoral gauges compiled by NSE advanced, led b the NSE Nifty Pharma Index's 0.47 percent gain.

The Indian rupee strengthens after depreciating in the last four trading sessions.

Weak Asian currencies and a strong dollar index though may keep gains in check. Dealers see the local unit trading in a range of 70.95-71.35 a dollar in the day.

Sovereign bonds came under severe pressure on reports the government favors a wider fiscal deficit. Yield on the most traded 2028 bond climbed nine basis points while that on the new 10-year by two basis points. For today, the central bank's buyback of bonds is likely to provide support and dealers will closely watch how much of the seven-year bond it accepts in the OMO.

F&O Cues

• Nifty January futures closed trading at 10922, premium of 29 points
• Max open interest for January series at 11,000 Call (open interest at 36.4 lakh shares)
• Max open interest for January series at 10,500 Put (open interest at 40.2 lakh shares)

Stocks In F&O Ban

• Adani Power
• Jet Airways

Put-Call Ratio

• Nifty PCR at 1.54 versus 1.51.
• Nifty Bank PCR at 0.99 versus 1.

Ambit on VIP Industries

• Initiated ‘Buy’ with a price target of Rs 653.
• Experienced team, investing in brand and own capacities to drive growth.
• Expect Ebitda margin to improve led by captive production, premiumisation and operating leverage.
• Near multiples don’t aptly build brand-and-opportunity confluence.
• Industry tailwinds to aid double-digit growth in volume and revenue.

On Mindtree

SBICAP

• Upgraded to ‘Buy’ from ‘Hold’; maintained price target at Rs 1,060.
• December quarter’s performance matches expectations.
• Management confident on sustaining growth momentum.
• Strong fundamentals; valuation turned attractive post correction.

Motilal Oswal

• Maintained ‘Buy’ with a price target of Rs 1,000.
• Signs of de-risking dependency on top client.
• March quarter’s outlook and growth commentary provide some reprieve.
• March quarter’s outlook hints at a strong exit; Hike revenue estimates for the next two financial years by 1.5 percent and 1.3 percent respectively.

• NMDC ex-date for share buyback.

• Leel Electricals: IndusInd Bank sold 4.3 lakh shares or 1.07 percent equity at Rs 51.27 each.

Other Earnings To Watch

• Aditya Birla Money
• AU Small Finance Bank
• Cyient
• Federal Bank
• L&T Technology Services
• Mangalam Organics
• Mastek
• Rallis India
• Geojit Financial Services

Earnings Reactions To Watch

Mindtree (QoQ)

• Dollar revenue up 2.1 percent at $251.5 million
• Revenue up 1.8 percent at Rs 1,787.2 crore
• Net profit down 7.3 percent at Rs 191.2 crore
• EBIT up 5.6 percent at Rs 242.3 crore
• Margin at 13.6 percent versus 13.1 percent

Also Read: Q3 Results: Mindtree’s Profit Declines But Meets Estimates

Motilal Oswal Financial Services (YoY)

• Revenue down 20.1 percent at Rs 647.6 crore
• Net profit down 85.6 percent at Rs 39.9 crore
• Declares Dividend of Rs 4 per share
• Broking Revenue down 10 percent at Rs 269.5 crore

• Bank Indonesia will probably hold its benchmark at 6 percent Thursday, according to all economists surveyed by Bloomberg.
• Bank of Japan Governor Haruhiko Kuroda and Deputy Governor Masayoshi Amamiya speak at a G-20 event in Tokyo.
• Data on U.S. jobless claims and industrial production are due.

• West Texas Intermediate crude slipped 0.2 percent to $52.20 a barrel.
• Brent crude declined 0.5 percent to $61.01 per barrel after rallying for two days.
• Gold gained less than 0.1 percent to $1,293.76 an ounce.

Also Read: Oil Gains as Russia, Saudis Signal Commitment to Production Cuts

London Metal Exchange

• Aluminium ended higher for the second day, up 0.76 percent.
• Lead resumed rally after a two-day blip. up 0.36 percent.
• Copper ended higher for the second day, up 0.84 percent.
• Tin halted a seven-day rally, ended 0.46 percent lower.
• Zinc ended 1.65 percent higher.
• Nickel ended 0.34 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 10,958 as of 8:30 a.m.

Asian stocks rose to their highest since early December following gains in U.S. equities as signs of a better-than-expected start to the earnings season countered concerns about rising U.S.-China tensions.

Shares in Tokyo led gains after an overnight decline in the yen, with advances more muted in Sydney and Seoul and futures signalling modest gains in Hong Kong equities.

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