Sensex, Nifty Log Losses For Second Session Dragged By I.T. Stocks

India's stock benchmarks declined for the second session, dragged by losses in information technology stocks, amid a decline in equities across the world. The S&P BSE Sensex slipped below 60,000 in intraday trade for the first time in seven sessions.

The Sensex fell 1.08% to 60,098.82. The NSE Nifty also declined by similar magnitude to 17,938.40. This is the first time the 50-stock gauge closed below 18,000 since Jan. 7.

Both the benchmarks have shed 2% in the past two sessions.

Infosys Ltd. had the largest drop, falling 2.8%. Today, 36 of 50 shares fell, while 14 rose.

The broader indices outperformed their larger peers with S&P BSE MidCap shedding 0.3% and S&P BSE SmallCap little changed. Eleven of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology shedding 2%.

The market breadth was skewed in the favour of bears. About 1,577 stocks advanced, 1,829 declined and 89 remained unchanged.

• Cabinet also approved Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts.

• National commission for Safaikaramcharis extended for three years beyond 31.3.22

Source: Cabinet briefing

Shares of Tata Elxsi Ltd. jumped as much as 12.45% to a record Rs 7,170 apiece.

• The company reported sequential growth in net profit and revenue in the quarter-ended December, post market hours Tuesday.

• This is the biggest intraday gain for the stock in nearly nine months since May 4, 2021.

• Of the five analysts tracking the company, one maintained 'buy', one 'hold' and three 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 23.6%.

• Trading volume on the stock was 20 times the 30-day average volume at this time of the day. The relative strength index on the stock is at 75, suggesting it may be overbought.

Source: Bloomberg

• Board of directors at Bharatpe have accepted Grover's decision to go on voluntary leave till March-end.

• Bharatpe will continue to be led by CEO Suhail Sameer and the rest of the management team.

• Kotak Mahindra Bank had threatened legal action against Grover for allegedly using inappropriate language against its employee in Nykaa IPO case.

Source: Bharatpe statement

• Mahindra & Mahindra Ltd. clarified that it had no intentions to restructure the group businesses into three verticals. A television channel had earlier reported that the company planned to recast group businesses. Mahindra & Mahindra denied the report.

• The company said it would focus on strengthening core business, unlocking value and building new-age digital platforms.

Source: Exchange Filing

BLOOMBERG EXCLUSIVE

• The lender approached PE firms for funds in exchange for a stake.

• RBL Bank is looking to raise about Rs 1,500 crore in 'confidence capital'.

• Deliberations are at an early stage and the bank could still decide against the fundraising plan.

Source: People familiar with the matter.

A representative of RBL Bank denied the plans, saying the lender does not see "any need to raise equity capital at this stage" and is currently having "no discussions with investors in this regard".

Source: Bloomberg

Shares of Sterlite Technologies Ltd. fell nearly 7%, the steepest intraday decline in over five months, to Rs 251 apiece after the company reported revenue below the average analyst estimate, in quarter-ended December.

Third Quarter Results (Consolidated, QoQ)

• Net loss at Rs 143.51 crore vs net profit of Rs 105.67 crore in Q2

• Revenue down 10% QoQ to Rs 1,355.53 crore vs Bloomberg consensus estimate of Rs 1,571 crore

• Other income at Rs 15.43 crore vs Rs 6.24 crore in Q2

• Total costs at Rs 1,562.37 crore vs Rs 1,376.06 crore

Commentary and Context

• Technologies order book at Rs 11,700 crore

• Company expects 'strong, sustainable' QoQ growth from 4G.

• Company recorded an additional provision of Rs 48.38 crore and Rs 64.38 crore on final settlement with customer for supply made in previous years.

Of the nine analysts tracking the company, seven maintained 'buy', two maintained 'hold' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 36.8%. The relative strength index of the stock is at 26, suggesting it may be oversold.

Source: Exchange Filing, Bloomberg

Shares of One 97 Communications Ltd. fell nearly 5% in intraday trade to the lowest ever since the company's listing on November 18.

• Paytm's shares have now fallen 54% from the issue price of Rs 2,150.

• The stock has fallen 10% over the last three sessions.

• Of the eight analysts tracking the company, three maintained 'buy', two maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 60.9%.

• Trading volume on the stock was 2.5 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: Bloomberg

GAIL India has suspended its Director (Marketing) ES Ranganathan from Jan. 18.

GAIL has entrusted MV Iyer, Director (BD) with the additional charge of the post of Director (Marketing), for a period of three months from Jan. 18, or till appointment of a regular incumbent to the post, or until further orders.

Source: Exchange Filing

India's stock benchmarks logged the steepest intraday decline in nearly two weeks since Jan. 6, dragged by banking and information technology stocks, amid a decline in global equities.

The S&P BSE Sensex shed 1.19% to 60,031.84. The 30-stock gauge fell below 60,000 in intraday trade for the first time in seven days. The NSE Nifty 50 also declined by similar magnitude to 17,908.15.

The S&P BSE MidCap almost mirrored its larger peers shedding over 1% while S&P BSE SmallCap outperformed Sensex and Nifty with 0.65% losses. Barring S&P BSE Power and S&P BSE Oil & Gas, all the other 17 sectoral indices compiled by BSE Ltd. declined, with S&P BSE Information Technology shedding nearly 2%.

The market breadth was skewed in the favour of bears. About 1,233 stocks advanced, 2,086 declined and 99 remained unchanged.

Devyani International Ltd.: IIFL initiated coverage of the stock with a 'buy' recommendation; price target set at Rs 205.

Source: Bloomberg

• Zomato has 1.03 million shares change hands in a large trade.

• Details of buyers, sellers not known immediately

Source: Bloomberg

Electric Vehicles maker Hero Electric and Mahindra group announced collaboration in eletric mobility.

• As part of the partnership, Mahindra group will manufacture Hero Electric's Optima and NYX bikes at their Pitampur plant to meet the rising demand.

• With this collaboration, Hero Electric aims to manufacture 1 million EVs per year by 2022.

• The five-year deal is valued at around Rs 140-150 crore.

• The deal also involves enabling electrification of Peugeot Motocycles’ portfolio through platform sharing

Source: Exchange filing

Sapphire Foods India: IIFL initiated coverage of the stock with a 'buy' recommendation; price target set at Rs 1,850.

Source: Bloomberg

Most yields along the India sovereign yield curve rose, with 10-year bonds moving the most in Wednesday morning trading.

• The 2-year yield remained unchanged at 4.685%

• The 10-year yield rose 1.6bps to 6.643%

• The 20-year yield remained unchanged at 7.02%

• The 2-year-10-year yield spread was 195.8bps, vs previous close 194.2bps

• The NSE Nifty 50 Index fell 0.7%

Source: Bloomberg

• NTPC has 1.75 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• Max Healthcare Institute Ltd. has 1 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of TV18 Broadcast Ltd. rose over 12%, the biggest intraday gain in over five weeks, to Rs 55.15 apiece after the company reported a sequential growth in net profit and revenue in the quarter-ended December.

• Consolidated net profit rose 35% QoQ to Rs 311.55 crore while revenue advanced 20% QoQ to Rs 1,567.08 crore. The company also reported its highest ever Ebitda at Rs 355 crore.

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

• The relative strength on the stock is at 74, suggesting it may be overbought

Source: Exchange Filing, Bloomberg

Nifty slips below 18,000 in intraday trade for the first time in six sessions, dragged by information technology and healthcare stocks. Sensex sheds over 350 points.

• Ashoka Buildcon Ltd. secured a project worth Rs 111.51 crore (excluding GST) from Bailey Properties Pvt Ltd.

• The projects pertains to construction work of mall cum multiplex in Patna. The project is to be completed within 15 months.

Source: Exchange Filing

• Lupin Ltd. entered into a partnership with Shenzhen Foncoo Pharmaceutical Co Ltd. This is the company's first partnership arrangement in China.

• Of the 42 analysts tracking the company, 21 maintained 'buy', 11 maintained 'hold' and 10 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 4.8%

Source: Exchange Filing

• Shares of Vedanta Ltd. rose as much as 2.5% in intraday trade to Rs 330.4 apiece after 42.7 million shares of the company, representing 1.15% of equity changed hands in four bunches.

• Buyers, sellers not immediately known.

Source: Bloomberg

India's stock benchmarks opened lower, dragged by information technology, banking, realty stocks, amid a decline in global equities following a surge in U.S. treasury yields at a prospect of monetary tightening by U.S. central bank.

The S&P BSE Sensex shed 0.28% to 60,586.25. The NSE Nifty declined by similar magnitude to 18,043.55.

The S&P BSE Midcap almost mirrored its larger peers while S&P BSE SmallCap outperformed Sensex and Nifty, as it traded little changed. Ten of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal rising over 1.25%. On the flipside, the S&P BSE Information Technology index shed 1%.

The market breadth was skewed in the favour of bulls. About 1,454 stocks advanced, 1,313 declined and 84 remained unchanged.

• Dalal Street looks set for another rough session on fears that the US Federal Reserve will have to accelerate further its tightening pace. So, commanding attention from here-on would be the two-day FOMC meeting beginning Jan. 25th. Also fueling pessimism are yesterday’s institutional activity where both, FIIs and DIIs camp sold shares in Indian stock markets. Foreign institutional investors (FIIs) net sold shares worth Rs 1,254.95 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 220.20 crores. The negative takeaway is that both the institutions sold shares for 2nd consecutive day. The street will be also bit apprehensive as scorching inflation is seen hurting retail sales. The street also fears that Omicron variant has still not subsided.

• Lastly, IT stocks earnings were generally strong so far but IT index fails to rally—fireworks missing. The Fed's hawkish talk is seen denting hopes of tech sector re-bound.

-Prashant Tapse, Vice President (Research), Mehta Equities Ltd.

• Jubilant Foodworks Ltd. launched the iconic U.S. fried chicken brand Popeyes in India, with the opening of its first restaurant in Bengaluru.

• A flagship store of Popeyes will be opened today, followed by opening of two more outlets.

Source: Exchange Filing

• Indian Energy Exchange Ltd. has divested 4.93% equity stake in Indian Gas Exchange Ltd. to Indian Oil Corporation Ltd. IEX and NSE are promoters of Indian Gas Exchange. Other strategic investors include GAIL, ONGC, Torrent Gas and Adani Total.

Source: Exchange Filing

Indian bonds may continue to reel as a relentless surge in U.S. Treasury yields and crude oil prices sour risk sentiment. Traders also await a Rs 26,000 crore ($3.5b) auction of Treasury bills.

• USD/INR rose 0.5% to 74.5825 on Tuesday.

• 10-year yields fell by 1bp to 6.63%; up ~18bps this month.

• Global funds sell net Rs 1,255 crore of India stocks Tuesday: NSE

• They bought Rs 290 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 21 crore of corporate debt

• State-run banks sold Rs 240 crore of sovereign bonds on Jan. 18: CCIL data. Foreign banks sold Rs 2,190 crore of bonds.

Source: Bloomberg