Sensex, Nifty Register Weekly Loss As Most Results Miss Estimates
India's stock benchmarks ended higher capping their weekly losses as the quarterly earnings were off to a disappointing start.
The S&P BSE Sensex advanced 0.26% to 52,975.80, taking its weekly decline to 0.3%. While NSE Nifty 50 Index gained by a similar magnitude to 15,856.05 today, it lost 0.4% for the week. Nine of the 19 sector indexes compiled by BSE Ltd. rose, led by a gauge of real estate stocks.
The S&P BSE Auto index, down 2.20% and S&P BSE Bankex, down 1.65% were the biggest laggards of the week.
The market breadth slightly skewed in favour of the bears. About 1,574 stocks advanced, 1,673 declined and 122 stocks remained unchanged on the BSE.
In earnings, 9 of the 11 Nifty companies that have announced results so far fell short of analysts’ estimates. Reliance Industries Ltd., the nation’s largest company by market capitalization, is due to give results today.
JSW Steel Q1 Net Profit Beats Estimates
JSW Steel reported net income for the first quarter that beat the average analyst estimate.
FIRST QUARTER RESULTS
Net income Rs 5,900 crore vs. estimate Rs 4,850 crore
Revenue Rs 28,900 crore vs. estimate Rs 28,492 crore
Total costs Rs 20,800 crore, +66% YoY
Other income Rs 198 crore, +50% YoY
Oper Ebitda Rs 10,274 crore, estimate Rs 9,159 crore
Ebitda margin 35.5%
COMMENTARY AND CONTEXT
Net debt to Ebitda 1.89X
Says spent Rs 2,690 crore on capex in 1Q against total planned capex spend of Rs 18,240 crore for FY22
To invest Rs 750 crore in JSW Paints in tranches
To invest Rs 445 crore in renewable SPV
Federal Bank Rises Post June Quarter Numbers
Shares of Federal Bank Ltd. gained 3.20% to Rs 86.95 apiece on the back of April-June quarter numbers.
Net profit at Rs 367 crore vs Rs 401 crore
Net NPA at Rs 1.23% vs 1.19% QoQ
Gross NPA at 3.5% vs 3.4% QoQ
NII at Rs 1414 crore vs Rs 1296 crore
Total Income at Rs 4005.86 crore vs Rs 3932.52 crore
Provisions at Rs 64,183 crore vs Rs 39,462 crore
Out of the 38 analysts tracked the private lender, 35 maintained ‘buy’, 2 maintained ‘hold’ and 1 analyst maintained ‘sell’ recommendation. The overall consensus price of analysts tracked by Bloomberg hinted at an upside of 21.3%.
Shares of Federal Bank gained 27.70% in 2021 so far as compared to 10.86% rise in S&P BSE Bankex Index over the same period.
Bharti Airtel Bucks The Trend In Telecom Shares
Bajaj Auto, Bharti Airtel, ICICI Bank in Focus: Options Watch
Bharti Airtel options volume 4.6x the 20-day average, with 93,797 calls changing hands vs 49,259 puts
Stock up 1.4%, volume 3.1x the 20-day average for this time of day
ICICI Bank options volume 2.5x the average, with 57,625 calls vs 26,824 puts
Stock up 2.4%, volume 0.9x the average
Bajaj Auto options volume 2.5x the average, with 26,998 calls vs 8,368 puts
Stock up 0.1%, volume 1x the average
UltraTech Cement options volume 2.5x the average, with 40,922 calls vs 16,426 puts
Stock up 0.7%, volume 1.5x the average
Hindustan Unilever options volume 2.2x the average, with 34,820 calls vs 14,024 puts
Stock down 0.5%, volume 0.9x the average
Nifty 50 options volume 0.5x the average, with 4.65 million calls vs 4.16 million puts; gauge up 0.3%
Cost of hedging as measured by the 90/110, one-month skew ranks in the 6th percentile over the past year
Nifty Bank index options volume 0.4x the average, with 7.44 million calls vs 6.81 million puts; gauge up 0.6%
90/110, one-month skew in the 44th percentile
India VIX Index down 1.9%