RIL, HDFC Twins Help Sensex, Nifty Halt Two-Day Losing Streak

Indian equity benchmarks recover from yesterday’s worst fall in four months, led by the gains in HDFC Ltd., HDFC Bank Ltd. and Reliance Industries Ltd.

The S&P BSE Sensex rose 0.59 percent to end at 40,915.75 and the NSE Nifty 50 rose 0.5 percent to close at 12,052.95. The broader markets represented by the NSE Nifty 500 Index rose 0.6 percent.

The market breadth was tilted in favour of buyers. About 1,206 stocks advanced and 585 shares declined on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Realty Index’s 1.9 percent gain.

About 12.5 lakh shares of ICICI Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

ITI

• Stock rose as much as 17.3 percent to Rs 107.40
• Revenue rose 47 percent to Rs 828 crore.
• Net profit was up 12.4 time to Rs 168.3 crore.
• Ebitda at Rs 64.8 crore versus Ebitda loss of Rs 19.4 crore.
• Other income was up 2.1 times to Rs 150.9 crore.

Mindtree

• Shares extended gains for the seventh consecutive trading session, their longest stretch of gains since April 2017.

Shree Cement

• Stock rose as much as 4.3 percent to Rs 21,970.
• Fresh longs seen with high open interest of 13 percent.

MCX

• Stock rose as much as 7.9 percent to Rs 1,303.90.
• SBI Cap securities increases price target to 1,330 from Rs 1,165.

VST Industries

• Stock rose as much as 2.4 percent to Rs 4,296.
• Trading volume was more than 16 times its 20-day average.

Welspun India

• Stock rose as much as 3.3 percent to Rs 49.85.
• Trading volume was more than four times its 20-day average.

Alkem Laboratories

• Stock rose as much as 1.7 percent to Rs 2,125.
• Trading volume was almost 11 times its 20-day average.

JK Lakshmi Cement

• Stock rose as much as 2.3 percent to Rs 310.
• Trading volume was more than 11 times its 20-day average.

Shares of Mindtree extended gains for the seventh consecutive trading session, their longest stretch of gains since April 2017.

The stock advanced 7 percent in seven trading sessions. The Relative Strength Index was at 78, indicating that the stock may be overbought, according to Bloomberg data.

The stock returned 4.7 percent in the past 12 months compared to a 15 percent rally in the Sensex.

Shares of GM Breweries erased gains and fell as much as 5.1 percent to Rs 388.55 after the company announced its December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue down 3.9 percent to Rs 119.8 crore.
• Net profit down 16.2 percent to Rs 14 crore.
• Ebitda down 20.1 percent to Rs 19.9 crore.
• Margin at 16.6 percent versus 20 percent.

The NSE Nifty Bank Index, which rose over 600 points today, staged a U-turn.

Asian stocks rebounded and U.S. and European futures pointed higher as investors dialled back concerns about a further deterioration in the security situation in the Middle East.

• The MSCI Asia Pacific Index gained 1 percent.
• Topix index rose 1.6 percent.
• Australia’s S&P/ASX 200 Index added 1.4 percent.
• South Korea’s Kospi index gained 1 percent.
• Hong Kong’s Hang Seng Index was up 0.5 percent.
• Shanghai Composite Index added 0.7 percent.
• S&P 500 futures gained 0.2 percent.
• Euro Stoxx 50 futures gained 0.6 percent.

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Source: Bloomberg

Shares of Ester Industries fluctuated between gains and losses to trade 0.3 percent lower at Rs 33.45.

The company’s board approved a capex of Rs 111 crore for its Speciality Polymer Business, according to its stock exchange filing.

Shares of Hindustan Construction Company rose as much as 6.4 percent to Rs 10.75.

The company’s joint venture with VCCL bagged a contract worth Rs 489 crore from Delhi Metro Rail Corporation Ltd. under Phase IV of the Delhi Metro project, according to its media statement

The work is expected to be completed in three years, HCC, which has 75 percent stake in the joint venture, said.

Shares of Biocon extended declines for the second consecutive trading session. The stock fell as much as 4.5 percent to Rs 275.20.

The company appointed MB Chinappa as the chief financial officer of Biocon Biologics India Ltd., a subsidiary of Biocon

Yesterday, the company announced that True North has acquired a stake in Biocon Biologics, valuing the company at $3 billion.

About 10 lakh shares of Bajaj Finance changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Nifty’s 12,100 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Jan. 9, fell 52.24 percent to Rs 58.15. Over 10.97 lakh shares were added to the open interest which stood at over 18.61 lakh shares.

Indian stocks traded off day’s high.

The S&P BSE Sensex rose 0.5 percent to 40,896 as of 11:15 a.m. and the NSE Nifty 50 rose 0.54 percent to 12,057. The broader markets represented by the NSE Nifty 500 Index rose 0.54 percent.

Shares of TV18 Broadcast rose as much as 4 percent to Rs 21.90.

About 10 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

The stock traded at 28 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of NMDC erased opening gains and fell as much as 2.6 percent to Rs 126.10.

“The Karnataka government has taken the view that the new amended mining Law will not be applicable to NMDC, as its lease to mine at Donimalai has already been cancelled,” The Hindu Business Line reported quoting unnamed government sources. “The State government has sought the Centre’s opinion in this matter,” the report added.

BloombergQuint spoke to the company’s Chairman and Managing Director Baijendra Kumar. Here are the key highlights from the conversation:

• Karnataka government has not taken any official view on the applicability of newly amended mining law
• NMDC is not aware of any Karnataka government decision regarding the applicability of amended mining law to Donimalai mine.
• Donimalai issue is pending with Mines Tribunal in Delhi.
• Mines Tribunal has given a stay on Donimalai mine auction.
• Government of India has taken a view in favour of NMDC.
• The country should not be deprived of seven million tonnes of iron ore during disruption time.

Shares of PI Industries extended declines for the second consecutive trading session and fell as much as 3.2 percent to 1,374.

The company said that a factory accident happened in one section of a multi-product plant at Jambusar fine chemicals manufacturing site in Gujarat has resulted in two fatalities and nine persons being injured. The impact of the incident is being ascertained, damaged equipment is fully covered by insurance, according to the company’s media statement.

Trading volume was 10 times its 20-day average, Bloomberg data showed. Of the shares traded, 27 percent were at the ask price and 52 percent were at the bid.

Indian stocks extended opening gains to rebound from yesterday’s worst fall in four months.

The S&P BSE Sensex rose 1.23 percent to 41,170 ad the NSE Nifty 50 rose 1.2 [percent to 12,136. The broader markets represented by the NSE Nifty 500 Index rose 1.3 percent.

Shares of Jubilant FoodWorks resumed gains after a one-day blip. The stock rose as much as 1.4 percent to hit an all-time high at Rs 1,702.50.

The scrip traded at 58 times its estimated earnings per share for the coming year, Bloomberg data showed. The stock advanced 39 percent in the past 12 months compared to 14 percent rally in the Sensex.

Shares of HDFC Bank rose as much as 2.5 percent to Rs 1,271.45 after sharing December quarter updates.

The lender’s advances were up 20 percent year-on-year to Rs 9,34,000 crore . Deposits rose 25 percent year-on-year to Rs 10,67,500 crore. CASA Ratio was at 39.5 percent versus 40.7 percent.

During the December quarter, the bank purchased loans aggregating to Rs 4,258 crore through direct assignment route under home loan arrangement with HDFC.

Shares of Canara Bank rose as much as 3.3 percent to Rs 214.30.

The state-run lender announced the repo rate linked lending rate for retail and MSME loans at 8.05 percent with effect from Jan. 7. The base rate will be 9.1 percent and one-year MCLR was at 8.35 percent.

Trading volume was more than five times its 20-day average, Bloomberg data showed. The stock declined 3.9 percent in the past five days and rose 2.2 percent in the past 30 days.

Shares of ITI rose as much as 15.8 percent, the most since Oct. 30, 2019, to Rs 106, the highest since April 9, 2019.

That came after the company announced its December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue rose 47 percent to Rs 828 crore.
• Net profit was up 12.4 time to Rs 168.3 crore.
• Ebitda at Rs 64.8 crore versus Ebitda loss of Rs 19.4 crore.
• Other income was up 2.1 times to Rs 150.9 crore.

Indian stocks rebound, in line with Asian peers as investors dialled back concerns about a further deterioration in the security situation in the Middle East.

The S&P BSE Sensex rose 1.07 percent or 432 points to 41,112 and the NSE Nifty 50 rose 1.1 percent to 12,125.5. The broader markets represented by the NSE Nifty 500 Index rose 1.13 percent.

The market breadth was tilted in favour of buyers. About 1,155 stocks advanced and 317 shares declined on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 2 percent advance.

Index Futures

• Nifty January futures closed at 12,043.7, premium of 50.7 points versus 29.8 points.
• Nifty January futures open interest up 1 percent, adds 1.1 lakh shares in open interest.
• Nifty Bank January futures closed at 31,362, premium of 124.9 points versus 92 points.
• Nifty Bank January futures open interest up 10 percent, adds 1.2 lakh shares in open interest.

Options

• Nifty PCR at 1.11 versus 1.36 (across all series).

Nifty Weekly Expiry: Jan. 9

• Max open interest on call side at 12,200 (25.4 lakh shares).
• Max open interest on put side at 12,000 (19.8 lakh shares).
• open interest addition seen at 12,100C (+19.4 lakh shares), 12,200C (+13.7 lakh shares), 12,000C (+12 lakh shares).
• open interest shedding seen at 12,200P (-11.1 lakh shares), 12,100P (-6.6 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (26.2 lakh shares).
• Max open interest on put side at 12,000 (38.3 lakh shares).

• Astec Lifesciences promoter Godrej Agrovet acquired 15,000 shares on Dec. 31.
• Aarti Industries promoter Chandrakant Gogri sold 13,000 shares on Dec. 31.

• Balrampur Chini Mills to meet Kotak Institutional Equities on Jan. 7.
• HPCL to meet Mirae MF on Jan. 7.
• Shriram City Union Finance to meet GoDigit General Insurance on Jan. 7.
• Punjab National Bank to meet HSBC Global, Doric Capital and Fidelity Group from Jan. 7-8.

• Dishman Carbogen Amcis, Indiabulls Real Estate to move into ASM Framework.
• Adani Green Energy, Gallantt Ispat, Supreme Infrastructure, Suzlon Energy, Vakrangee, Weizmann Forex , Zuari Global, Jaiprakash Power Ventures to move into short term ASM Framework.
• Sundaram Brake Linings to move of short term ASM Framework.
• Reliance Industrial Infrastructure, Suzlon Energy price band revised to 10 percent.
• Shankara Building Products, GSS Infotech price band revised to 5 percent.

• ESAF Small Finance Bank seeks SEBI approval for Rs 976-crore initial public offering.

• VST Tillers Tractors: Power Tillers sales rose 4 percent to 1,410 units. Tractors sales fell 39 percent to 366 units.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.31 percent to 71.71 against the greenback.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.62 percent to 40,930.40 during the pre-market trade and the NSE Nifty 50 rose 0.58 percent to 12,052.

• HDFC Bank Q3 Update: Advances were up 20 percent year-on-year to Rs 9,34,000 crore . Deposits rose 25 percent year-on-year to Rs 10,67,500 crore. CASA Ratio was at 39.5 percent versus 40.7 percent. During the quarter, the Bank purchased loans aggregating to Rs 4,258 crore through direct assignment route under home loan arrangement with HDFC.
• PI Industries said that factory accident happened in one section of a multi-product plant at Jambusar fine chemicals manufacturing site in Gujarat has resulted in two fatalities and nine persons being injured. The impact of the incident is being ascertained, damaged equipment is fully covered by insurance, according to the company’s media statement.
• Tata Group: Supreme Court has set Jan. 10 as the hearing date for Tata Sons petition, according to Bloomberg report.
• Sagar Cements: December sales fell 4.33 percent to 3,12,132 units.
• Mishra Dhatu Nigam dispatched the first consignment for high strength steel and cobalt alloys to Indian Space Research Organisation.
• Aster DM Healthcare will consider share buyback on Jan. 9.
• Reliance Home Finance said that total amounts of default from loans from financial institutions stood at Rs 982.18 crore on Dec. 31. Total financial indebtedness stood at Rs 11,891.24 crore.
• Canara Bank: Repo rate linked lending rate for Retail and MSME loans at 8.05 percent with effect from Jan. 7. Base Rate will be 9.1 percent and one-year MCLR at 8.35 percent.
• Bank of Maharashtra reduced MCLR and Base Rate across various tenors with effect from Jan. 7. One-year MCLR was at 8.25 percent and Base Rate was at 9.4 percent.
• Container Corporation of India has incorporated its wholly-owned arm CONCOR Last Mile Logistics, to develop goods sheds, operate and manage freight terminals/ goods sheds, develop warehouses etc.
• IL&FS defaulted in payment of interest on Loan worth Rs 33.5 crore on which was due on Jan. 1. IL&FS Realty Fund has terminated its management pact with IL&FS Investment Advisors.
• TCI Finance defaulted in payment of principal and interest amounting to Rs 60 lakh of a term loan from HDFC.
• Zenith Birla entered into a one-time settlement with Oriental Bank of Commerce against credit facilities by the company.
• Ajmera Realty & Infra will consider the proposal of internal restructuring on Jan. 10.
• Morepen Laboratories defaulted in payment of interest and principal of compulsory redeemable preference shares worth Rs 33.4 crore to J&K Bank, UTI Bank, Oriental Bank of Commerce, General Insurance Corporation, Oriental Insurance and Kuoni Travel. Preference shares could not be redeemed on respective due dates as the company had accumulated losses.
• Rail Vikas Nigam: Ministry of Railways has conveyed the conceptual framework to introduce competition among public sector undertakings for awarding Railway work.
• Biocon has appointed MB Chinappa as the chief financial officer of Biocon Biologics.

Earnings To Watch

• GM Breweries

Earnings Reaction To Watch

ITI (Q3, YoY)

• Revenue rose 47 percent to Rs 828 crore.
• Net profit was up 12.4 time to Rs 168.3 crore.
• Ebitda at Rs 64.8 crore versus Ebitda loss of Rs 19.4 crore.
• Other Income was up 2.1 times to Rs 150.9 crore.

• Oil steadied as investors weighed the risk to Middle East oil supplies in the fallout from the U.S. airstrikes that killed Iran’s most powerful military general and sparked a severe escalation in hostilities between the two nations.
• U.S. stocks advanced as heavyweight technology companies led a rebound.

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Asian stocks rebounded and U.S. futures edged up as investors dialled back concerns about a further deterioration in the security situation in the Middle East.

Equity benchmarks rose more than 1 percent in Tokyo and Sydney, and advanced in Seoul and Hong Kong. Shanghai saw more modest gains

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