Sensex, Nifty Decline Dragged By I.T. Stocks After Fed Hints At Faster Rate Hike Path
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
KEY HIGHLIGHTS
Adani Wilmar IPO Subscription Status: Day 1 Live Updates
Torrent Pharma Tumbles As Analysts Slash Target After Q3 Miss Citing Weakness In U.S., Germany Business
Analysts Expect Maruti Suzuki To Recover Market Share & Margin As Demand Recovers & Semiconductor Shortage Eases
10-Year Yield Rises To Highest Since 2019
Cipla Gains 2% As Analysts Reiterate 'Buy' After Q3 Results Citing Strong Growth Prospects
Closing Bell
India's stock benchmarks declined, dragged by losses in information technology, consumer durables, healthcare and realty stocks, amid weak global cues following the Federal Reserve Chair's comments hinting at a steady unwind of its pandemic-era stimulus.
Over the past seven sessions, the S&P BSE Sensex and NSE Nifty 50 fell for six sessions, with the exception being Tuesday.
The S&P BSE Sensex fell 1% to 57,276.94. The 30-stock gauge shed nearly 2.5% (over 1,400 points) in intraday trade. The NSE Nifty also declined by similar magnitude to 17,110.15. The 50-stock gauge fell below 16,900 in intraday trade.
The index dropped to the lowest closing level since Dec. 27 after the previous session's increase of 0.8%. HCL Technologies Ltd. had the largest drop, falling 4.1%. Today, 35 of 50 shares fell, while 15 rose.
The broader indices almost mirrored their larger peers with S&P BSE MidCap shedding 1.25% and S&P BSE SmallCap falling 0.82%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology losing over 3%.
The market breadth was skewed in the favour of bears. About 1,481 stocks advanced, 1,882 declined and 92 remained unchanged.
Laurus Labs Declines On Q3 Miss
Shares of Laurus Labs Ltd. fell 7.37% in intraday trade after the company reported net income for the third quarter that missed the average analyst estimate.
December-Quarter Results (Consolidated, QoQ)
Net profit at Rs 154.97 crore vs Rs 203.95 crore (Bloomberg Consensus Estimate: Rs 197 crore)
Revenue at Rs 1,028.76 crore vs Rs 1,203.48 crore (Estimate: Rs 1,191 crore)
Total costs at Rs 830.59 crore vs Rs 943.12 crore
Other income at Rs 5.33 crore vs Rs 2.83 crore
Of the 13 analysts tracking the company, nine maintained 'buy' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 28.5%.
Trading volume on the stock was nearly 3.5 times the 30-day average volume at this time of the day.
Source: Exchange Filing, Bloomberg
Colgate-Palmolive Q3 Net Income Meets Estimates
Nifty Bank At Day's High
Sensex, Nifty Off Day's Low Aided By Gains In Banking, Auto Stocks
Tata Teleservices Maharashtra On Track For Longest Losing Streak In 17 Years
Shares of Tata Teleservices Maharashtra Ltd. fell for 11th straight day, on track for the longest losing streak since March 2005.
The stock has declined 43% over the last 11 days after the company opted to convert interest on AGR dues into equity.
Source: Bloomberg
Delhi Allows Cinemas To Resume At 50% Capacity: Official
Local administration of Delhi will allow cinemas to resume operations at 50% capacity, an official tells reporters, declining to be identified as the information isn't public.
The administration will also lift the weekend curfew.
Source: Bloomberg
European Markets Decline
Canara Bank Surges The Most In Three Months On In-Line Q3
Shares of Canara Bank rose nearly 8%, the biggest intraday gain in nearly three months, to Rs 238.55 apiece after the lender reported net income for the third quarter that matched the average analyst estimate
December quarter results (Standalone)
Net profit up 116% YoY at Rs 1,502.12 crore vs Rs 696.06 crore (Bloomberg consensus estimate: Rs 1,450 crore)
Interest income up 2.8% YoY at Rs 17,700.60 crore vs 17,211.94 crore
Interest expense down 3.3% YoY at Rs 10,755.62 crore vs Rs 11,125.46 croreCanara Bank Surges The Most In Three Months On In-Line Q3
Other income at Rs 3,611.67 crore vs Rs 4,153.45 crore
Gross NPA at 7.8% vs 8.42% QoQ
Of the 14 analysts tracking the company, 12 maintained 'buy' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 3%.
Trading volume on the stock was over five times the 30-day average volume at this time of the day.
Source: Exchange Filing, Bloomberg
Cera Sanitaryware Jumps The Most In A Month As Analysts Upgrade The Stock After Strong Q3
Shares of Cera Sanitaryware Ltd. rose over 5%, the biggest intraday gain in over a month, to Rs 4,720 apiece as analyst raised target after the company reported sequential growth in net income and revenue for the December-quarter, during market hours on Monday.
Share price rose above 200-day simple moving average, indicating potential upward price momentum.
Over the last two sessions, the scrip has risen 5%. Of the 16 analysts tracking the company, 11 maintained 'buy', four maintained 'hold' and one maintained 'sell' recommendations.
Analyst updates in the past three days include two upgrades.
The overall consensus price of analysts tracked by Bloomberg implied an upside of 21.4%.
Trading volume on the stock was above five time the 30-day average volume at this time of the day.
Analyst expect the company to be a major beneficiary due to an improving housing market due to its significant presence in sanitaryware and faucetware.
They also highlight that the consistent price hikes taken by the company has supported margin growth. Analysts say that the recent correction in the stock price makes the valuation attractive and prompted the upgrade.
ICICI Securities
Upgrades stock to 'buy' from 'add' with the target price unchanged at Rs 5,545; an implied return of 23.4%.
Better product mix aided rise in operating margins.
Continues to like the company due to its significant presence in sanitaryware and faucetware, demand for which will increase due to an improving housing market.
Company's operating performance has been better than expected.
Strong brand, distribution reach, comprehensive product portfolio are key growth drivers.
Company is expected to be a significant beneficiary of the uptick in housing demand.
IDBI Capital Market Services
Upgrades stock to 'buy' from 'hold' with the target price reduced to Rs 5,447 from Rs 5,483; an implied return of 21.22%
Strong demand traction and consistent price hike taken aided net sales growth and margin growth.
Company is poised to benefit from healthy industry demand and better product mix.
Recent correction in stock price makes the valuation look attractive, prompting the upgrade to 'buy'.
Indiabulls Real Estate, DLF, Godrej Properties Lead The Decline In Real Estate Stocks
NSE Nifty PSU Bank Jumps Over 2% In Weak Market
Mid-Day Market Update: Sensex, Nifty Shed 2%; I.T., Realty Stocks Decline
India's stock benchmarks declined, dragged by losses in information technology, consumer durables and realty stocks, as markets tumbled following U.S. Federal Reserve Chair Jerome Powell signaled that the U.S. central bank will start raising interest rates 'soon'.
The S&P BSE Sensex fell 2.11% to 56,637.41. The 30-stock gauge slipped below 56,500 in intraday trade as it shed over 1,400 points.
The NSE Nifty also declined by similar magnitude to 16,922. The 50-stock gauge fell to an intraday low of 16,866.75.
The S&P BSE MidCap almost mirrored its larger peers while the S&P BSE SmallCap outperformed, with losses as much as 1.4%. All the 19 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Information Technology, Consumer Durables, Realty and Teck indices shedding over 3%.
The market breadth was skewed in the favour of bears. About 1,071 stocks advanced, 2,208 declined and 109 remained unchanged.
Hawkish Fed Outlook, Geopolitical Tensions Add To Volatility In Markets
Markets are down mainly on the Hawkish Fed Outlook. Mr Powell, chairman of the Federal Reserve, signalled a rise in interest rates in March and predicted the possibility of an unexpectedly aggressive policy tightening. This has led to an increase in the 10-year bond yields of the US and the dollar index, which is negative for emerging markets. Tensions between Russia and Ukraine have pushed up crude oil prices. With all these headwinds, the market today is facing a monthly expiration date for January FNO contracts, which has added to the volatility.Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
Adani Wilmar IPO Subscription Status: Day 1 Live Updates
Adani Wilmar Ltd., a consumer goods joint venture between Adani Group and Wilmar Group, will sell shares at Rs 218-230 apiece in its three-day initial public offering that opened Thursday.
Subscription Details: Day 1
The IPO was subscribed 0.24 times or 24% as of 12 p.m. on Jan. 27.
Institutional investors: 0.11 times.
Non-institutional investors: 0.05 times.
Retail investors: 0.49 times.
Employees: 0.01 times.
Shareholders: 0.04 times.
Tata Sons Set To Own Air India As Soon As Thursday, Reports Bloomberg
Tata Sons set to own Air India after years of taxpayer bailouts as soon as Thursday.
Tata Sons is set to formally take over debt-laden Air India today.
Source: Person familiar with the matter.
Torrent Pharma Tumbles As Analysts Slash Target After Q3 Miss Citing Weakness In U.S., Germany Business
Shares of Torrent Pharmaceuticals Ltd. fell 16.61%, the steepest intraday decline in at least two years, to Rs 2,635.8 apiece after most analysts reduced target price after the company reported net income for the third quarte that missed the average analyst estimate, post market hours on Tuesday.
Analysts cited the steep price erosion in the U.S. business and slowdown in Germany business as major challenges in the near-to-medium term for the company.
Delays in new approvals due to regulatory issues at Indrad and Dahej facilities, higher freight expenses and lower manufacturing volumes are some of the other factors that analysts identified as risks for the company.
Of the 31 analysts tracking the company, 16 maintained 'buy', nine maintained 'hold' and six maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 22.6%
Source: Exchange Filing, Bloomberg, Brokerage Note
Supreme Court Agrees To Hear Future Retail's Plea Against NPA Classification Deadline On Jan. 31
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.
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.
India Yields Mostly Higher
Most yields along the India sovereign yield curve rose, with 10-year bonds moving the most in Thursday morning trading.
The 5-year yield rose 6bps to 5.986%
The 10-year yield rose 6.8bps to 6.725%
The 30-year yield rose 4.2bps to 7.32%
The 5-year-10-year yield spread was 73.9bps, vs previous close 73.1bps
The NSE Nifty 50 Index fell 1.9%
Source: Bloomberg
Air India To Be Officially Handed Over To Tata Group Today, Reports ANI
Rupee Drops To Lowest Level Against The U.S. Dollar In 2022
India’s government bonds and the rupee slid as traders factored in an increasingly hawkish tilt by the U.S. Federal Reserve to combat inflation.
10-year yields jumped 6 bps to 6.72%, highest since December 2019
The rupee fell as much as 0.6% to 75.1937 per dollar, the most in two months
Source: Bloomberg
Analysts Expect Maruti Suzuki To Recover Market Share & Margin As Demand Recovers & Semiconductor Shortage Eases
10-Year Yield Rises To Highest Since 2019
India 10-year yield rises 5 bps to 6.71%, highest since 2019
Source: Bloomberg
boAt Products Manufacturer Imagine Marketing Files For IPO
Wearables maker boAt files for SEBI approval for up to Rs 2,000-crore IPO.
Fresh shares worth Rs 900 crore to be offered in IPO.
Source: Bloomberg
Cooperative Industry Association Sahakar Bharati To Approach Supreme Court Against PMC Bank Resolution Scheme
Sahakar Bharati will take lead along with PMC Bank depositors and associations and will appeal to Supreme Court to take suo moto cognisance of the issue.
PMC Bank depositors are facing long lock-in period of 10 years, at low interest rates of 1-2.75%, says Sahakar Bharati.
Sahakar Bharati seeks that the resolution scheme be amended to reduce lock-in period for depositors to 5 years and a minimum of 6% interest be paid during this period.
Source: Sahakar Bharati Press Release
Cipla Gains 2% As Analysts Reiterate 'Buy' After Q3 Results Citing Strong Growth Prospects
Shares of Cipla Ltd. rose over 2% after most analysts reiterated 'buy' on the company, after the Q3 numbers, citing growth prospects in domestic market.
Analysts say that Cipla has a very strong U.S. generics pipeline and expect product launch momentum to accelerate in U.S. business.
Of the 39 analysts tracking the company, 32 maintained 'buy', five maintained 'hold' and two maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 18.1%.
Trading volume on the stock was 2.5 times the 30-day average volume at this time of the day.
Source: Exchange Filing, Bloomberg
Sensex, Nifty Shed 2%
Petronet LNG Has 6.55 Million Shares Change Hands In A Large Trade
Petronet LNG has 6.55 million shares change hands in a large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Power Grid Has 1 Million Shares Change Hands In A Large Trade
Power Grid Corp. of India Ltd. has 1 million shares change hands in a large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Opening Bell: Sensex Sheds 1,000 Points; Nifty Slips Below 17,000
India's stock benchmarks declined, dragged by losses in information technology, banking, metal and consumer durables stocks after Federal Reserve Chair Jerome Powell signalled a March interest-rate liftoff and the hinted at the possibility of hikes at each policy meeting.
The S&P BSE Sensex shed 1.64% to 56,909.49. The NSE Nifty 50 declined by similar magnitude to 16,994.70. Titan Co. had the largest drop, falling 2.8%. In early trading, 47of 50 shares fell, while 3 rose.
The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap outperformed with losses of 0.5%. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Consumer Durables, Information Technology and Healthcare indices shedding 2%.
The market breadth was skewed in the favour of bears. About 1,036 stocks advanced, 1,698 declined and 99 remained unchanged.
Glenmark Pharma Receives USFDA Nod For Tablets To Treat High Blood Pressure
Glenmark Pharmaceuticals Inc. USA, a subsidiary of Glenmark Pharmaceuticals Ltd. got the U.S. FDA nod for Bisoprolol Fumarate and Hydrochlorothiazide Tablets USP, the generic version of Ziac tablets of Teva Branded Pharmaceutical Products R&D Inc.
The tablets are used in the treatment of high blood pressure.
According to IQVIA sales data, Ziac tablets achieved annual sales of $30.3 million, in the period ending November 2021.
Source: Exchange Filing
Rupee, Bonds May Fall After Federal Reserve's Hawkish Pivot
Indian government bonds and the rupee are likely to come under pressure after the Fed opened the door to more and faster-than-anticipated rate hikes.
USD/INR rose 0.3% to 74.7762 on Tuesday
10-year yields little changed at 6.66%
Overseas investors sold Rs 7,090 crore of Indian stocks on Tuesday
They bought Rs 461 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 19 crore of corporate debt
State-run banks bought Rs 645 crore of sovereign bonds on Jan. 25: CCIL data. Foreign banks sold Rs 754 crore of bonds.
Source: Bloomberg
Future Enterprises To Sell 25% Stake In General Insurance JV For Rs 1,243 Crore To Generali
Future Enterprises Ltd. agreed to sell 25% stake in its General Insurance Joint Venture, Future Generali India Insurance Company Ltd. to its JV partner Generali Participations Netherlands N.V. for Rs 1,252.96 crore, plus an additional consideration.
Generali also acquired an option to buy out Future Enterprises' remaining interest in Future Generali India Insurance, at an agreed valuation.
Generali had earlier received the CCI's nod to buy 16% stake held by Industrial Investment Trust Ltd. in the Life Insurance JV. It also agreed to invest up to Rs 330 crore in Future Generali India Life Insurance Co Ltd.
Generali will hold majority stake and control in both insurance and life insurance joint ventures, post these transactions.
Future Enterprises has received offers fot its remaining 24.91% in Insurance JV and it exploring options for sale of 33.3% interest in Life Insurance JV. The company aims to complete exit of its holding in these JVs to meet the commitment under One Time Restructuring Plan of RBI in relation to Resolution Framework for Covid-19 related stress.
Source: Exchange Filing
In Focus: Entertainment Stocks On Reliance Investment Report
India’s entertainment and television stocks may move on a report of Reliance Industries planning to invest more than 120b rupees ($1.6b) in the broadcasting business along with James Murdoch, and former head of Star India Uday Shankar.
Murdoch, son of media baron Rupert Murdoch, and Shankar, plan to buy nearly 40% stake in Viacom18, a joint venture in Reliance Industries-owned TV18 Broadcast, the Economic Times newspaper reported on Wednesday, citing people it didn’t identify.
In Focus: TV18 Broadcast, Network 18 Media, Zee Entertainment, TV
SGX Nifty Hints At Opening Losses; RIL, Cipla, Canara Bank, PNB, Adani Wilmar IPO In Focus
Asian stocks were mixed and Treasuries trimmed losses on Thursday as investors evaluated Federal Reserve Chair Jerome Powell’s signal of a March interest-rate liftoff and the possibility of hikes at each policy meeting.
Equities fluctuated in Japan and slipped in Australia and South Korea, where Samsung Electronics Co. missed profit estimates. U.S. contracts edged higher after the fallout from the Fed wiped out a Wall Street rally on Wednesday.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, fell 1.19% to 17,015.50 as of 7:15 a.m.
Elsewhere, Brent oil surged above $90 for the first time in seven years before paring the advance. Gold held a drop. Bitcoin traded around $37,000.
Post Market Hour Earnings
Cipla Q3FY22 (Consolidated, YoY)
Revenue up 6% at Rs 5,478.86 crore Vs Rs 5,168.69 crore
Net profit down 3% at Rs 728.60 crore Vs Rs 748.15 crore
Ebitda flat at Rs 1,230.97 crore Vs Rs 1,230.88 crore
Margins at 22.5% Vs 23.8%
To transfer India-based U.S. business undertaking to Cipla BioTec for Rs 1,400 crore and consumer business undertaking to Cipla Health for Rs 80 crore as a going concern on a slump sale basis.
United Spirits Q3FY22 (Consolidated, YoY)
Revenue up 6% at Rs 8,917.20 crore Vs Rs 8,410.30 crore
Net profit up 4% at Rs 299.60 crore Vs Rs 287 crore
Ebitda up 13% at Rs 518.70 crore Vs Rs 457.60 crore
Margins at 5.8% Vs 5.4%
Macrotech Developers Q3FY22 (Consolidated, YoY)
Revenue up 36% at Rs 2,059.44 crore Vs Rs 1,514.10 crore
Net profit up 26% at Rs 285.59 crore Vs Rs 227.25 crore
Ebitda up 3% at Rs 485.78 crore Vs Rs 472.68
Margins at 23.6% Vs 31.2%
Indiabulls Real Estate Q3FY22 (Consolidated, YoY)
Revenue down 55% at Rs 322.82 crore Vs Rs 721.67 crore
Net loss of Rs 87.21 crore Vs Net profit of Rs 80.58 crore
Ebitda loss of Rs 56.48 crore Vs Ebitda gain of Rs 128.89 crore
To sell its entire stake in subsidiaries Airmid Developers, Mariana Developers, Albina Properties and Flora Land Development to Elan Ltd for Rs 580 crore.
Torrent Pharmaceuticals Q3FY22 (Consolidated, YoY)
Revenue up 6% at Rs 2,108 crore Vs Rs 1,995 crore
Net profit down 16% at Rs 249 crore Vs Rs 297 crore
Ebitda down 11% at Rs 538 crore Vs Rs 607 crore
Margins at 25.5% Vs 30.4%
Approved interim dividend of Rs 25 per equity share.
Teamlease Services Q3FY22 (Consolidated, YoY)
Revenue up 38% at Rs 1,762.07 crore Vs Rs 1,275.42 crore
Net profit up 31% at Rs 29.96 crore Vs Rs 22.87 crore
Ebitda up 52% at Rs 37.66 crore Vs Rs 24.8 crore
Margins at 2.1% Vs 1.9%
Can Fin Homes Q3FY22 (YoY)
Total income up 1% at Rs 508.48 crore Vs Rs 502.76 crore
Net profit down 12% at Rs 115.69 crore Vs Rs 131.91 crore
Finolex Industries Q3FY22 (Consolidated, YoY)
Revenue down 6% at Rs 1,005.25 crore Vs Rs 1,066.06 crore
Net profit down 32% at Rs 177.43 crore Vs Rs 259.40 crore
Ebitda down 30% at Rs 241.89 crore Vs Rs 346.26 crore
Margins at 24.1% Vs 32.5%
Stocks To Watch
GE T&D India: Has agreed to sell global engineering operations division to GE India Industrial (a related party) together with the assets and manpower along with its corresponding liabilities by way of a slump sale on an “as is where is” basis.
Phoenix Mills: The company’s subsidiaries Vamona Developers and Offbeat Developers have entered into share subscription and shareholders agreement with Renew Surya Kiran and Renew Green Energy Solutions for subscribing 19.97% and 11.23% equity shares, respectively, in Renew Surya Kiran. The company has also collaborated with ReNew Power to generate 5 MW of solar power.
ICRA: Appointed Amit Kumar Gupta as the interim chief financial officer after Vipul Agarwal’s resignation.
AllCargo: Appointed V S Parthasarathy as vice chairman.
Raymond: Has approved the scheme of arrangement between the company and Raymond Lifestyle, a wholly-owned subsidiary.
Lux: Said there has been no violation and any infractions committed by the company after SEBI’s insider trader order.
UPL: Appointed Mike Frank as president and chief operating officer.
Shivalik Bimetal: Will consider declaration of dividend on Feb. 2.
SRF: Has approved project to create pharma intermediates plant for undertaking precursor processes for production of pharma products at Dahej at a cost of Rs 190 crore.
Capital Square: The company’s right issue offer of 64,95,000 shares will open on Feb. 2 and close Feb. 16.
SH Kelkar: The company, through its subsidiary Keva Europe B.V., has completed the acquisition of 62% equity stake in Holland Aromatics B.V.
Shyam Metalics: Has appointed Growlity Inc., management consultants for a comprehensive diagnostic study on SMEL’s environmental, social and governance fundamentals, implementation of ESG framework and compliance.
HG Infra: Has been declared as L-I bidder by National Highways Authority of India.
KPIT: Will consider declaration of interim dividend on Jan. 31.
PNC Infratech: The company, in joint venture with SPML Infra Ltd., has received letters of award for three new EPC projects ‘survey, design, preparation of DPR, construction, commissioning and O&M for 10 years of rural water supply’ for 2,475 villages in Uttar Pradesh from the Namami Gange & Rural Water Supply department of the state, for Rs 2,337 crore. PNC Infratech's share in the JV is 90%.
Reliance Industries: Among firms to invest Rs 12,000 crore in broadcasting, Economic Times reported, citing people it did not identify.