Sensex Sheds 550 Points; Nifty Logs Worst Day In 2022

India's stock benchmarks declined after fluctuating between gains and losses for the most part of the session, dragged by auto, information technology, telecom, consumer durables, metals and realty stocks. Investors would shift focus to finance minister Nirmala Sitharam's press conference scheduled at 4:30 p.m. The FM is expected to address on 'important economic issue'.

The S&P BSE Sensex fell 0.90% to 60,754.86. This is the steepest single day decline for the 30-stock index since Jan. 6 and the second worst day for Sensex since Dec. 20. The NSE Nifty 50 shed 1.07% to 18,113.05. This is the worst day for the 50-stock gauge in 2022, surpassing the 1% decline on Jan. 6.

Tata Consumer Products Ltd. had the largest drop, falling 4.4%. Today, 42 of 50 shares fell, while 8 rose.

The broader indices underperformed their larger peers with S&P BSE MidCap shedding over 2% and S&P BSE SmallCap falling nearly 2%. Barring S&P BSE Bankex, all the other 18 sectoral indices compiled by BSE Ltd. declined with S&P BSE Realty, Metal, Capital Goods, Auto, Industrials and Basic Materials indices slipping over 2%.

The market breadth was skewed in the favour of bears. About 1,143 stocks advanced, 2,287 declined and 83 remained unchanged.

"Domestic equities closed lower after heavy selling witnessed in the last hour of trade. Nifty closed 1% lower after positive opening", according to Mitul Shah, Head of Research at Reliance Securities. He noted that in the past, volatilty in the market had been observed to persist till the announcement of first rate hike by Fed, post that it settled down and flow in equities resumed and expected that to be the case this time as well. He was hopeful that "an all-round calibrated economic recovery is on the cards, though the timing remains highly uncertain. Sectors like IT Services, Engineering, Capital Goods and EV ecology would continue to be in focus in 2022. Automobile is also another promising sector on the back of likely demand revival, better supply and commodity softening".

• NTPC Ltd. has 4.55 million shares change hands in a bunched trade.

• Details of buyers and sellers are not known immediately.

Source: Bloomberg

Shares of Adani Green Energy Ltd. rose for the 13th session, on track for the longest winning streak in 19 months.

• The relative strength index on the stock was 87, suggesting it may be overbought. Trading volume on the stock was nearly three times the 30-day average volume at this time of the day.

Source: Bloomberg

Shares of Easy Trip Planners Ltd. rose nearly 2%, the biggest intraday gain in four sessions to Rs 589 apiece after the company announced India's first-ever exclusive partnership with Flybig in scheduled commuter airline segment.

• The tickets of Flybig, India's newest regional airline, will be exclusively sold by EaseMyTrip.

• With this partnership, Easy Trip becomes the first online travel company to evolve into a general sales agent (GSA) for a domestic airline.

• Flybig, based in Guwahati, Assam offers weekly flights to passengers across Arunachal Pradesh, Assam and West Bengal.

Source: Exchange Filing

Shares of real estate developers advanced after analysts at Motilal Oswal initiated coverage on four developers, Macrotech Developers, Oberoi Realty, DLF and Godrej Properties.

• The brokerage cited a potential upcycle for residential realty space as the rationale for the move.

• ICICI Securities, in an earlier report on Jan. 12, said that net office absorption would increase over next three years due to improved pace of vaccinations and gradual reopening of workplaces.

HFCL Ltd.'s shares fell as much as 8.56%, the steepest intraday decline in four weeks, to Rs 88.1 apiece after it reported sequential decline in consolidated net profit in quarter-ended December.

December Quarter Results (Consolidated, QoQ)

• Net profit fell 5.81% QoQ to Rs 81.10 crore.

• Revenue up 8.29% QoQ to Rs 1,215.21 crore.

• EBITDA margin fell 110 bps to 14.32%

• The company planned to expand capacity of Optical Fibre and Optical Fibre cable to 22 mfkm/p.a and o 34.75 mfkm/p.a respectively with a cumulative investment of Rs 425 crore

Trading volume on the stock was 2.2 times the 30-day average volume, at this time of the day.

Source: Exchange Filing, Bloomberg

Ramkrishna Forgings Ltd. reported sequential decline in net profit in quarter-ended December.

Q3 results (Standalone, QoQ)

• Net profit down 3.15% QoQ at Rs 45.12 crore vs Rs 50.11 crore

• Revenue up 4.68% QoQ at Rs 606.05 crore vs Rs 578.94 crore

• EBITDA up 0.74% QoQ at Rs 140.21 crore vs Rs 139.18 crore

• The company declared third interim dividend of Rs 0.50 per equity share of face value of Rs 10 each for FY22.

• The board approved Jan. 28 as the record date for the purpose of payment of interim dividend to the eligible shareholders.

• It also approved sub-division of equity shares from face value of Rs 10 each to face value of Rs 2 each, subject to approval of members. The record date for the share split will be announced soon.

• The company bagged contracts worth Rs 220 crore from six projects during Q3.

• Of the five analysts tracking the company, four maintained 'buy' and one maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 36%.

Source: Exchange Filing, Bloomberg

• Lupin has acquired several brands from Anglo-French Drugs & Industries Limited for a lump sum of Rs 325 crore.

• The acquisition would enable addition of established brands especially in the vitamins, minerals and supplements category, Lupin said.

• Transaction is expected to be completed by March 2022.

Source: Exchange filing

India's stock benchmarks declined, dragged by losses in telecom, information technology, healthcare and auto stocks.

The S&P BSE Sensex fell 0.18% to 61,200.03. The 30-stock gauge fell below 61,000 in intraday trade for the first time this week. The NSE Nifty 50 also declined by similar magnitude to 18,264.10.

The S&P BSE MidCap underperformed its larger peers, falling over 0.5% while S&P BSE SmallCap almost mirrored Sensex and Nifty and shed 0.2%. Twelve of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Telecom index falling over 1.25%.

The market breadth was skewed in the favour of bears. About 1,526 stocks advanced, 1,815 declined and 99 remained unchanged.

• Nirmala Sitharaman to address on 'important economic issue'.

Source: Bloomberg

• Max Health Institute Ltd. intends to invest $450 million over four years to double its capacity in India.

• We are looking at doubling our capacity, we are fortunate to have land banks in our network in citing including Mumbai and New Delhi.

• Company is entering a 'huge asset creation cycle in the next two to three years'.

• Max Healthcare to continue its focus on medical tourism.

- Abhay Soi, Chairman & Managing Director, Max Healthcare in an interview to Bloomberg TV

Source: Bloomberg

• Tata Motors announces marginal hike in prices of passenger vehicles from January 19 owing to rising input costs.

• Average increase of 0.9% to be implemented depending on the variant and model.

• The company has also taken a reduction of upto Rs 10,000 on specific variants, in response to feedback from customers.

• No impact on prices of cars booked on or before January 18.

Source: Company Statement

• Inox Wind Ltd. will participate in unit Inox Green's IPO, the company said in an exchange filing.

• Inox Wind approved an offer for sale of up to Rs 400 crore.

Source: Exchange Filing

Most yields along the India sovereign yield curve rose, with 5-year bonds moving the most in Tuesday morning trading.

• The 1-year yield remained unchanged at 4.323%

• The 10-year yield rose 2.1bps to 6.657%

• The 14-year yield rose 1.7bps to 7.097%

• The 1-year-10-year yield spread was 233.4bps, vs previous close 231.3bps

• The NSE Nifty 50 Index fell 0.4%.

Source: Bloomberg

Shares of Tatva Chintan Pharma Chem Ltd. fell nearly 9.5%, the steepest intraday decline since its listing on July 29, 2021.

• The company reported a sequential decline in net profit and revenue in its December quarter earnings, post market hours on Monday.

• All the four analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 4.4%.

• Trading volume on the stock was above 15 times the 30-day average volume at this time of the day.

Source: Exchange Filing, Bloomberg

Nazara Technologies to acquire 55% stake in programmatic advertising and monetisation company Datawrkz

• Datawrkz is valued at Rs 225 crore.

• Nazara will acquire 33% stake for Rs 60 crore, in the first tranche by April 22.

• Nazara reserves an option to acquire an additional 22% in the second tranche, that is expected to close in Q4FY23.

• Of the eight analysts tracking the company, six maintained 'buy' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 12.2%

Source: Exchange Filing, Bloomberg

• Delhivery’s IPO has been approved by SEBI. The offering will be a combination of offer-for-sale and fresh issue of shares.

• Proposals of Chennai-based Veranda Learning and Radiant Cash Management have also been approved.

Source: SEBI

Indian bonds may extend losses as higher crude oil prices and U.S. Treasury yields weigh on sentiment. The rupee may also open lower amid worries over the impact of elevated commodity prices on the nation’s fiscal health.

• 10-year yields rose 6bps to 6.64% on Monday

• USD/INR rose 0.1% to 74.2425 on Monday

• Global funds sold net Rs 855 crore of India Stocks Monday: NSE

• They sold Rs 143 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 32 crore of corporate debt

• State-run banks sold Rs 200 crore of sovereign bonds on Jan. 17: CCIL data. Foreign banks bought Rs 1,480 crore of bonds

Source: Bloomberg

Shares of Prestige Estates Projects Ltd. rose as much as 8.28%, the biggest intraday gain in nearly two months, to a record Rs 554.9 apiece.

• Prestige Estates logged record sales of Rs 4,267.6 crore, up 111% YoY in the quarter-ended December, the company said in its business update.

• Collections rose 70% YoY to Rs 2,431.6 crore.

• Of the 19 analysts tracked by Bloomberg, 17 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 4.7%.

• Trading volume on the stock was 23 times the 30-day average volume at this time of the day. The relative strength index on the stock is at 77, suggesting it may be overbought.

Source: Exchange Filing, Bloomberg

India's stock benchmarks opened higher, aided by gains in oil & gas, power, realty stocks, amid a rebound in global equities.

The S&P BSE Sensex rose 0.19% to 61,425.99. The NSE Nifty 50 advanced by similar magnitude to 18,338.75.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap adding over 0.5%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty rising over 1.5%.

The market breadth was skewed in the favour of bulls. About 1,983 stocks advanced, 802 declined and 78 remained unchanged.

• Dixon Technologies Ltd. entered into joint venture agreement with Imagine Marketing Pvt Ltd. to design and manufacture wireless audio solutions in India.

• The proposed JV company will be owned 50% by Dixon and 50% by Imagine.

• Dixon Tech says that the JV is for making bluetooth enabled audio devices.

Source: Exchange Filing

• Arvind: Antique Stock Broking initiated coverage with a 'buy' recommendation; price target set at Rs 210.

• Supreme Industries raised to 'buy' from 'add' at HDFC Securities; price target set at Rs 2,700.

• Hindustan Unilever: Ambit Capital initiated coverage with a 'sell' recommendation; price target set at Rs 2,424.

• Marico: Ambit Capital initiated coverage with a 'buy' recommendation; price target set at Rs 580.

• Dabur India: Ambit Capital initiated coverage with a 'buy' recommendation; price target set at Rs 630

Source: Bloomberg

• Atul Ltd.: Ambit Capital initiated coverage with a 'buy' recommendation; price target set at Rs 11,525.

• SRF Ltd.: Ambit Capital initiated coverage with a 'buy' recommendation; price target set at Rs 3,054.

• Navin Fluorine: Ambit Capital initiated coverage with a 'sell' recommendation; price target set at Rs 3,516.

• Deepak Nitrite: Ambit Capital initiated coverage with a 'buy' recommendation: price target set at Rs 3,117.

• Aarti Industries: Ambit Capital initiated coverage with a 'sell' recommendation; price target set at Rs 890.

Source: Bloomberg

Apple Inc. and Samsung Electronics Co. are set to manufacture smartphones worth $5 billion in India under PLI scheme this fiscal, the Economic Times reported, citing unnamed government officials and industry executives.

The projected production is 50% above the target set by authorities.