Sensex, Nifty Snap Losing Streak Ahead Of Crucial Federal Reserve Meeting
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
Closing Bell
India's stock benchmarks snapped a five-day losing streak, aided by gains in auto, banking, power, telecom and realty stocks. Focus shifts to Fed’s meeting Wednesday, when economists expect it to signal plans to start hiking interest rates in March to curb the rise in inflation. The markets will be closed on Wednesday on account of Republic Day.
The S&P BSE Sensex gained 0.64% to 57,858.15. The 30-stock gauge rose over 1,500 points from day's low as markets recovered in the second half of the session. The Nifty 50 index advanced by similar magnitude to 17,277.95. The measure slipped to an intraday low of 16,836.80 before staging a recovery, mainly on the back of Maruti Suzuki India Ltd. and Axis Bank Ltd., which rose on the back of better-than-expected earnings in the quarter-ended December.
The move was the biggest since rising 0.9% on Jan. 12 and follows the previous session's decrease of 2.7%. Maruti Suzuki India Ltd. had the largest increase, rising 6.8%. Today, 36 of 50 shares rose, while 14 fell.
The broader indices outperformed their larger peers with S&P BSE MidCap rising over 1% and S&P BSE SmallCap gaining 0.81%. Barring S&P BSE Information Technology and Consumer Durables, all the other 17 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Auto, Bankex, Telecom, Utilities and Power adding over 2%.
The market breadth was skewed in the favour of bulls. About 1,979 stocks advanced, 1,366 declined and 89 remained unchanged.
"Markets took a breather and gained over half a percent, tracking firm recovery in the US markets and upbeat earnings. Initially, the benchmark remained volatile however healthy buying in select index majors from banking, auto and telecom space helped the index to gradually inch higher as the day progressed", Ajit Mishra summarised the day's market action in a note. He added "Markets will react to the Fed meeting outcome in early trade on Thursday and we expect volatility to remain high, thanks to the scheduled monthly expiry. Keeping in mind the scenario, we reiterate our cautious view and suggest preferring hedged positions".
SRF Q3 Net Income Above Analyst Estimate
Shares of SRF Ltd. rose as much as 6.50% to Rs 2,523.8 apiece after the company reported net income above average analyst estimate for the quarter-ended December.
Q3FY22 Results (Consolidated, QoQ)
Net profit at Rs 505.54 vs Rs 382.46 crore
Revenue at Rs 3,345.87 crore vs Rs 2,938.97 crore
Total costs at Rs 2,626.26 crore vs Rs 2,317.67 crore
Other income at Rs 10.67 crore vs Rs 11.12 crore
Hindustan Aeronautics Receives Rs 109.58 Crore Income Tax Refund
Shares of Hindustan Aeronautics Ltd. rose as much as 5.67%, the biggest intraday gain in over three months, to Rs 1,438 apiece, after the company received an income tax refund of Rs 109.58 crore (including an interest of Rs 25.96 crore) for the Assessment Year 2007-08(Financial year 2006-07).
MAT Credit of Rs 216.87 crore has also been made available to the company, which will be carried forward and adjusted against future tax liabilities.
All the six analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 28.6%.
Trading volume on the stock was nearly two times the 30-day average volume at this time of the day.
Source: Exchange Filing, Bloomberg
Nifty Bank Up Nearly 2%
Maruti Suzuki, Hero Moto Lead The Gains In Auto Stocks
Maruti Suzuki Jumps Over 4% On Q3 Beat
Shares of Maruti Suzuki India Ltd. rose over 4.4% in intraday trade to Rs 8,408.95 apiece after the company reported net income for the third quarter that beat the average analyst estimate.
Third Quarter Results (Standalone, YoY)
Revenue down 1% at Rs 23,246 crore Vs Rs 23,457.8 crore (Bloomberg Consensus estimate : Rs 23,261.5 crore)
Net profit down 48% to Rs 1,011.3 crore from Rs 1,941.4 crore (Estimate : Rs 913.4 crore Profit)
EBITDA down 30% to Rs 1,559 crore from Rs 2,226.1 crore (Estimate : Rs 1,394.5 crore Profit)
Margins at 6.7% Vs 9.5% (Estimate : 6%)
EPS at Rs 33.48 per share Vs Rs 64.27 (Estimate : Rs 31.41)
Of the 53 analysts tracking the company, 35 maintained 'buy', seven maintained 'hold' and 11 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 2.1%. Trading volume on the stock is nearly two times the 30-day average volume at this time of the day.
Source: Exchange Filing, Bloomberg
European Markets Open Higher
Zomato Gains 10% After Monday's Record Slump
Shares of Zomato rose as much as 9.91% in intraday trade after suffering a 20% rout on Monday.
Today's intraday rise is the most since Nov. 12.
Of the 19 analysts tracking the company, 14 maintained 'buy', one maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 65.7%.
Trading volume is nearly eight times the 30-day average volume, at this time of the day. The relative strength index on the stock is at 26, suggesting it may be oversold.
Source: Bloomberg
Future Retail Approaches Supreme Court Against The NPA Classification Deadline
Future Retail has challenged the event of default notice by its lenders.
The 30-day grace period for clearing the dues will expire on January 29.
Source: People in the know of the filing
Future Retail has missed paying Rs 3,494 crore worth dues, which was required under the one-time restructuring scheme.
Failure to make the payment will result in the restructuring plan becoming infructous and instant NPA classification.
CarTrade Tech Declines After Posting Net Loss In Q3
Mid-Day Market Update: Sensex, Nifty Decline; I.T. Stocks, RIL Log Losses
India's stock benchmarks declined, dragged by losses in energy, information technology, consumer durables stocks, and are on course to post the longest losing streak in almost a year, amid decline in global equities on account of impact of tapering, rising crude oil prices, simmering geopolitical tension between Russia and Ukraine and rise in covid-19 cases due to omicron variant.
The S&P BSE Sensex fell 0.56% to 57,167.10. The 30-stock gauge shed nearly 2% to 56,409.63 in intraday trade. The NSE Nifty also declined by similar magnitude to 17,081.65.
The broader indices outperformed their larger peers, with S&P BSE MidCap little changed and S&P BSE SmallCap shedding 0.2%. Twelve of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Telecom rising nearly 2%.
The market breadth was skewed neither in the favour of the bulls nor the bears. About 1,611 stocks advanced, 1,655 declined and 98 remained unchanged.
Max Healthcare Has 1.87 Million Shares Change Hands In A Large Trade
Max Healthcare Institute Ltd. has 1.87 million shares change hands in a large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Rupee Depreciates To 74.7550 Against The U.S. Dollar; Highest Since Dec. 29
Bonds Gain Amid Easing Oil Prices
Indian bonds gain amid an overnight easing in global crude oil price.
10-year yields down 2bps to 6.64%,
Source: Bloomberg
Union Budget 2022 Likely To Be Presented At 11 A.M. On Feb. 1, Reports ANI
Sterlite Technologies Bags Rs 170 Crore Order From Power Grid; Shares Advance
Shares of Sterlite Technologies Ltd. rose over 3%, the most in four weeks, to Rs 206.7 apiece after the company secured a Rs 170 crore order from the country's largest power distribution company, Power Grid Corporation of India Ltd.
Sterlite Technologies will deliver a customised unified network management system, with automation capabilities to Power Grid, which will help in reducing system outages and generate performance analytics for the Central Electricity Authority.
Of the eight analysts tracking the company, seven maintained 'buy' and one maintained 'hold' recommendations. Over the past month, three of the analysts have revised the price targets lower. The overall consensus price of analysts tracked by Bloomberg implied an upside of 54.8%.
Trading volume on the stock was nearly 2.5 times the 30-day average volume at this time of the day.
The relative strength index on the stock is at 15, suggesting it may be oversold.
Source: Exchange Filing, Bloomberg
Top Themes & Sectors To 'Buy The Dip'
IndiaMart InterMesh Slips To 52-Week Low After Reporting Sequential Decline In Net Profit In Q3
Shares of IndiaMart InterMesh Ltd. fell nearly 11% to a 52-week low of Rs 5,200 apiece after the company reported sequential decline in net profit in December-quarter earnings, post market hours Monday.
Third Quarter Results (Consolidated, QoQ)
Net profit down 14.6% at Rs 70.2 crore vs Rs 82.2 crore
Revenue up 3.1% at Rs 188.1 crore vs Rs 182.4 crore
Total costs at Rs 113.6 crore vs Rs 103.4 crore
Other income at Rs 219 crore vs Rs 314 crore
Supplier storefronts grew to 7 million with a net addition of 5,833 subscribers during the quarter.
Of the 14 analysts tracking the company, nine maintained 'buy', two maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 47.1%.
Trading volume was nearly seven times the 30-day average volume at this time of the day.
The relative strength index on the stock was at 20, suggesting it may be oversold.
Source: Exchange Filing, Bloomberg
Reliance Industries Shares Decline
Broader Indices Outperform Their Larger Peers
Yield Curve Shifts Lower
Yields fell across the India sovereign yield curve in Tuesday morning trading.
The 5-year yield fell 3bps to 5.907%
The 10-year yield fell 2.1bps to 6.638%
The 18-year yield remained unchanged at 7.133%
The 5-year-10-year yield spread was 73.1bps, vs previous close 72.2bps
The NSE Nifty 50 Index fell 0.8%
Source: Bloomberg
BPCL To Invest Rs 10,000 Crore In Six New Geographical Areas For City Gas Distribution
Shares of Bharat Petroleum Corporation Ltd. rose nearly 2%, the biggest intraday gain in nearly two weeks, to Rs 368 apiece after the company emerged as a successful bidder in six geographical areas (GA) in 19 districts, to set up City Gas Distribution (CGD) networks in the recently concluding 11th bidding round of PNGRB.
With this, BPCL's CGD footprints will extend to 48 GAs covering 94 districts in 18 states.
As of now, BPCL holds 33% market share in CGD sectory.
BPCL has committed to over Rs 22,000 crore for development of 23 GAs, including Rs 10,000 crore for the six new GAs.
Of the 38 analysts tracking the company, 35 maintained 'buy', two maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 42.8%.
Source: Exchange Filing, Bloomberg
S&P BSE Energy Down Over 1%; RIL, ONGC Decline
Ramco Cements Falls To One-Year Low On Q3 Miss
Shares of Ramco Cements Ltd. fell nearly 8% to its lowest intraday level since Feb. 1, 2021 after third quarter net income and Ebitda miss analysts' estimates.
The Ramco Cements Q3FY22 (Consolidated, YoY)
Revenue up 16% at Rs 1,552.50 crore Vs Rs 1,343.89 crore
Net profit down 63% at Rs 75.62 crore Vs Rs 206.71 crore (Bloomberg consensus estimate: Rs 176 crore)
Ebitda down 43% at Rs 228.92 crore Vs Rs 398.15 crore
Margins at 14.7% Vs 29.6%
Of the 36 analysts tracking the company, 24 maintained 'buy', seven maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 26.4%.
Trading volume on the stock is 12.5 times the 30-day average volume at this time of the day. The relative strength index on the stock is at 24, suggesting it may be oversold.
Source: Exchange Filing, Bloomberg
Analyst Actions: L&T Finance, L&T Infotech, Havells India
L&T Finance raised to 'buy' from 'add' at ICICI Securities; price target set at Rs 97.
L&T Infotech raised to 'buy' from 'hold' at Anand Rathi Securities; price target set at Rs 7,070.
Havells India raised to 'accumulate' from 'sell' at Elara Securities India; price target set at Rs 1,360.
Source: Bloomberg
Airtel Surges The Most In Two Weeks
Shares of Bharti Airtel Ltd. surged nearly 3%, the most since Jan. 12, after the company said it will consider issuing shares on a preferential basis at its board meeting on Jan. 28.
The equity shares will be issued to entities "other than" the promoter and promoter group, , the telecom services provider said in a exchange filing.
Of the 34 analysts tracking the company, 31 maintained 'buy', two maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 21.7%.
Trading volume on the stock was two times the 30-day average volume at this time of the day.
Source: Bloomberg, Exchange Filing
Deepak Nitrite Falls The Most In Three Months On Q3 Miss
Shares of Deepak Nitrite Ltd. shed nearly 10%, the steepest intraday decline in three months, to Rs 2,129.05 apiece, after the company reported net income below the average analysts' estimate in the quarter-ended December.
Deepak Nitrite Q3FY22 (Consolidated, YoY)
Revenue up 39% at Rs 1,722.27 crore Vs Rs 1,234.69 crore
Net profit up 12% at Rs 242.46 crore Vs Rs 216.56 crore
Ebitda up 5% at Rs 351.85 crore Vs Rs 335.04 crore
Margins at 20.4% Vs 27.1%
Of the 15 analysts tracking the company, 10 maintained 'buy', two maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 8%.
Source: Exchange Filing, Bloomberg
Axis Bank Jumps The Most In Six Weeks As Analyst Reiterate 'Buy'
Shares of Axis Bank Ltd. rose as much as 3.79%, the biggest intraday gain in six weeks, after analysts reiterated 'buy' on the lender after its December quarter earnings.
Net profit jumped more than threefold over the year earlier while NII rose 17% YoY
Analysts cite pick-up in loan growth, improvement in asset quality as positives and flag elevated cost ratio as an area of concern.
Of the 53 analysts tracking the lender, 48 suggest a 'buy' and five recommend a 'hold', according to Bloomberg data. The 12-month consensus price target implies an upside of 33.2%.
Source: Exchange Filing, Bloomberg
Opening Bell: Sensex, Nifty Open Lower; I.T., Banking Stocks Decline
India's stock benchmarks opened lower, dragged by losses in auto, informational technology, banking and realty stocks, amid decline in global equities due to concerns over Federal Reserve policy tightening and geopolitical tension.
The S&P BSE Sensex shed 1.74% to 56,490.33. The NSE Nifty also declined by similar magnitude to 16,855.05.
The broader indices outperformed their larger peers with the S&P BSE MidCap shedding 0.5% and S&P BSE SmallCap falling over 0.75%. Barring S&P BSE Telecom and S&P BSE Metal indices, all the other 17 sectoral indices compiled by BSE Ltd. declined with S&P Consumer Durables and Energy shedding 1.5%.
The market breadth was skewed in the favour of bears. About 990 stocks advanced, 1,822 stocks declined and 69 remained unchanged.
Airtel To Consider Issuing Shares On Preferential Basis On Jan. 28
Bharti Airtel Ltd. will consider issuing shares on a preferential basis at its board meeting on Jan. 28, the telecom services provider said in a exchange filing.
The equity shares will be issued to entities "other than" the promoter and promoter group, the company said.
Analyst Actions: Ramco Cements, HDFC AMC
Ramco Cements upgraded to 'add' from 'reduce' by Centrum Broking; price target set at Rs 994.
HDFC AMC upgraded to 'buy' from 'add' by Axis Capital Ltd.; price target set at Rs 2,750.
Source: Bloomberg
Reliance Plans To Raise Up To $3 Billion For Green Power Business, Reports Mint
Reliance Industries Ltd. is in talks with investors to raise $3 billion in equity to fund its renewable energy business, Mint reported citing people it did not identify.
The discussions led by Manoj Modi are at a preliminary stage.
Funds would go to Reliance New Energy Solar Ltd., the report said.
RIL did not immediately respond to Mint's email seeking comments.
Source: Bloomberg
SGX Nifty Hints At Opening Losses; Maruti Suzuki, Cipla, Hero Moto, United Spirits In Focus
U.S. equity futures and Asian stocks declined on Tuesday after volatility on Wall Street stoked by concerns over Federal Reserve policy tightening and geopolitical tension.
S&P 500 and Nasdaq 100 futures retreated about 1%, while an Asia-Pacific share gauge hit the lowest point since November 2020. U.S. stocks erased a 4% drop to close up Monday on high volumes in a wild turnaround from a selloff that rivaled any of the last two years.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, fell 0.48% to 16,975.50 as of 7:45 a.m.
Treasuries were mixed, with the benchmark 10-year yield inching lower. Oil stabilised after getting swept up in the bout of risk aversion.
In cryptocurrencies, Bitcoin pared some of its gains from Monday.
Earnings Post Market Hours
Axis Bank Q3FY22
Net Profit: Rs 3,614 crore vs Rs 1,116.6 crore (YoY) (Bloomberg Estimate: 3,216 crore)
NII at Rs 8,653 crore Vs Rs 7,373 crore (YoY)
GNPA at 3.17% Vs 3.53% (QoQ)
NNPA at 0.91% Vs 1.08% (QoQ)
SBI Cards and Payment Services Q3FY22 (Consolidated, YoY)
Revenue up 20% at Rs 2,889.46 crore Vs Rs 2,408.37 crore
Net profit up 84% at Rs 385.78 crore Vs Rs 209.66 crore
Gross NPA at 2.40%
Net NPA at 0.83%
Deepak Nitrite Q3FY22 (Consolidated, YoY)
Revenue up 39% at Rs 1,722.27 crore Vs Rs 1,234.69 crore
Net profit up 12% at Rs 242.46 crore Vs Rs 216.56 crore
Ebitda up 5% at Rs 351.85 crore Vs Rs 335.04 crore
Margins at 20.4% Vs 27.1%
The Ramco Cements Q3FY22 (Consolidated, YoY)
Revenue up 16% at Rs 1,552.50 crore Vs Rs 1,343.89 crore
Net profit down 63% at Rs 75.62 crore Vs Rs 206.71 crore
Ebitda down 43% at Rs 228.92 crore Vs Rs 398.15 crore
Margins at 14.7% Vs 29.6%
Shriram Transport Finance Co Q3FY22 (Consolidated, YoY)
NII up 10% at Rs 2,430.61 crore Vs Rs 2,202.11 crore
Net profit down 6% at Rs 680.62 crore Vs Rs 727.72 crore
Approved fundraising under the upsized $3.50 billion Global Medium Term Note Programme.
Approved raising of funds through public issue of redeemable NCDs in domestic market of up to Rs 10,000 crore.
Approved issuance of redeemable NCDs/subordinated debentures on private placement basis for purpose of business of the company up to Rs 35,000 crore
Burger King Q3FY22 (YoY)
Revenue up 72% at Rs 279.89 crore Vs Rs 163.19 crore
Net loss at Rs 15.15 crore Vs Rs 29.02 crore
Ebitda at Rs 32.81 crore Vs Rs 15.2 crore
Margin 11.7% Vs 9.3%
Stocks To Watch
Future Retail: Missed interest payments due on 5.6% senior secured notes (USD).
IndiaMart: Has entered into an agreement to invest Rs 61.55 crore in Simply Vyapar Apps in its Series B investment round by subscribing 1,809 Series B compulsorily convertible preference shares and purchasing 444 equity shares.
Alkem Laboratories: To consider declaration of interim dividend on Feb. 4.
Kirloskar Ferrous: Announced interim dividend of Rs 2.5 per share.
Mannapuram Finance: To consider declaration of interim dividend on Feb. 14.
GMM Pfaudler: To consider declaration of interim dividend on Feb. 3.
Earnings: Maruti Suzuki India, Cipla, Pidilite Industries, Macrotech Developers, SRF, United Spirits, Torrent Pharmaceuticals, Aditya Birla Sun Life AMC, APL Apollo Tubes, Brightcom Group, Astec Lifesciences, Best Agrolife, Can Fin Homes, CarTrade Tech, Cosmo Films, Federal Bank, Finolex Industries, Indiabulls Real Estate, Icra, Ion Exchange (India), MPS, Raymond, RPG Life Sciences, Star Cement, Swaraj Engines, Symphony, TeamLease Services