Sensex, Nifty Drop The Most In Three Weeks As HDFC Twins, RIL Drag
Catch all the live updates on share prices, index moves, corporate announcements and more from Sensex and Nifty today.
KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Drop The Most In Three Weeks As HDFC Twins, RIL Drag
Indian indices registered their steepest fall in three weeks, led by the declines in HDFC Bank Ltd., HDFC Ltd. and Reliance Industries Ltd.
The S&P BSE Sensex fell 1.1 percent, the most since Jan. 6, 2019, to 41,155.12 and the NSE Nifty 50 fell 1.06 percent to 12,119. The broader markets represented by the NSE Nifty 500 Index fell 0.83 percent.
The market breadth was tilted in favour of sellers. About 1,067 stocks declined and 729 shares advanced on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 3.1 percent fall. On the flipside, the NSE Nifty Pharma Index was the only sectoral gainer, up 1.5 percent.
Sun Pharma Advanced Surges 8% To 10-Month High
Shares of Sun Pharma Advanced Research extended gains for the third consecutive trading sessions. The stock rose as much as 8.3 percent to Rs 201.25, the highest since March 19, 2019.
Trading volume was more than double its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Fab Four Stocks Of The Day
Wockhardt
- Shares of the drugmaker surged 15 percent intraday to Rs 343.65 apiece.
- The company reported a net profit of Rs 9.6 crore for the December quarter compared with a loss of Rs 71.7 crore in the year-ago period.
- Revenue rose 16.9 percent to Rs 869.2 crore.
- Ebitda jumped 5.7 times to Rs 109.2 crore.
- Operating margin at 12.6 percent versus 1.8 percent.
La Opala RG
- Stock rose as much as 15.4 percent to Rs 204
- About 40 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Prestige Estates Projects
- Stock rose as much as 5.4 percent to Rs 401.50 after announcing the December quarter results.
Key Earnings highlights (Q3, YoY)
- Stock rose as much as 5.4 percent to Rs 401.50.
- Revenue rose 2.5 times to Rs 2,680.9 crore.
- Net profit up 2.8 times to Rs 161.8 crore.
- Ebitda rose 2.1 times to Rs 718.8 crore.
- Ebitda margin at 26.8 percent versus 32.6 percent.
Cholamandalam Investment & Finance
- Stock rose as much as 4 percent to Rs 336.80.
- Fresh longs seen with high open interest of 33 percent.
- Trading volume was 2.5 times its 20-day average.
Large Trade Alert: ICICI Prudential Life Insurance
About 17 lakh shares of ICICI Prudential Life Insurance changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Shares of the company rose for the sixth consecutive trading session. The stock rose as much as 2.6 percent to Rs 533.35.
Market Check: Sensex Drops Over 400 Points; Nifty Near 12,100
Indian stocks extended declines to trade at day’s low.
The S&P BSE Sensex fell 1 percent to 41,193 and the NSE Nifty 50 fell 0.98 percent to 12,128.50. The broader markets represented by the NSE Nifty 500 fell 0.73 percent.
Stocks Moving On Heavy Volumes
Thyrocare Technologies
- Stock rose as much as 7.2 percent to Rs 588.
- Trading volume was more than five times its 20-day average.
APL Apollo Tubes
- Stock rose as much as 8.9 percent to Rs 2,219.
- Trading volume was more than six times its 20-day average.
Atul
- Stock rose as much as 8.4 percent to Rs 4,983.30
- Trading volume was more than five times its 20-day average.
Dish TV Falls After Large Trades
Shares of Dish TV India fell 1.4 percent to Rs 14.10. The stock had declined as much as 2.8 percent earlier.
About 90 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Global Markets Update: Virus Fears Drive Sell-Off In Stocks
Deepening fears about the economic and human impact of the deadly coronavirus sent stocks, crude oil and China’s yuan tumbling Monday, and spurred haven assets.
- The Stoxx Europe 600 Index dipped 1.5 percent.
- Futures on the S&P 500 Index decreased 1 percent.
- Japan’s Topix index sank 1.6 percent.
Get your daily fix of global markets here.
Source: Bloomberg
Wockhardt Jumps After Q3 Results
Shares of the drugmaker surged 15 percent intraday to Rs 343.65 apiece. The company reported a net profit of Rs 9.6 crore for the December quarter compared with a loss of Rs 71.7 crore in the year-ago period.
- Revenues rose 16.9 percent to Rs 869.2 crore.
- Ebitda jumped 5.7 times to Rs 109.2 crore.
- Operating margin at 12.6 percent versus 1.8 percent.
The relative strength index on the stock was above 70, indicating it may be overbought.
Market Check: Sensex, Nifty At Day’s Low
Indian stocks extended morning declines to trade at day’s low.
The S&P BSE Sensex fell 0.66 percent to 41,341 and the NSE Nifty 50 fell 0.68 percent to 12,166.20. The broader markets represented by the NSE Nifty 500 Index fell 0.44 percent.
Large Trade Alert: La Opala RG
About 40 lakh shares of La Opala RG changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Dr. Reddy’s Laboratories Swings After Q3 Results
Shares of Dr. Reddy's Laboratories fluctuated between gains and losses to trade 1.9 percent higher at Rs 3,088.80 after announcing December quarterly results.
Key Earnings Highlights (Q3, YoY)
- Net loss at Rs 570 crore versus profit of Rs 485 crore. (Estimate: Rs 492 crore)
- Revenue up 13.8 percent to Rs 4,384 crore. (Estimate: Rs 492 crore)
- Ebitda up 43.1 percent to Rs 1,019 crore. (Estimate: Rs 492 crore)
- Margin at 23.2 percent versus 18.5 percent. (Estimate: 21.8 percent)
- The total impairment charge for the December quarter was at Rs 1,320 crore, of which Rs, 1,113.7 crore was towards impairment of gNuvaring and the balance of Rs 206.3 crore was towards other product-related intangibles.
Sectoral Check: NSE Nifty Metal Index Worst Performer
Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 2.4 percent fall. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 0.5 percent.
Large Trade Alert: Yes Bank
About 12.6 lakh shares of Yes Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Zuari Agro Surges The Most In Nearly Three Weeks
Shares of Zuari Agro Chemicals extended gains for the second consecutive trading session. The stock rose as much as 14 percent, the most since Jan. 8, 2020, to Rs 118.90.
The stock returned 23.4 percent so far this year and slumped 48.3 percent in the past 12 months.
CreditAccess Grameen Gains For Fourth Day, Shares Hit Record High
Shares of CreditAccess Grameen extended gains for the fourth consecutive trading session. The stock rose as much as 3.3 percent to hit an all-time high at Rs 864.70.
Trading volume was more than two times its 20day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Stocks Reacting To Results Announcement
ICICI Bank (Q3, YoY)
- Stock rose as much as 1.9 percent to Rs 543.70.
- Net interest income rose 24 percent to Rs 8,546 crore.
- Profit after tax up 1.5 times to Rs4,146 crore.
- Provisions at Rs 2,083 crore versus 2,506 crore.
- Gross NPA at 5.95 percent versus 6.37 percent. (QoQ)
- Net NPA at 1.49 percent versus 1.60 percent. (QoQ)
- Slippages at Rs 4,363 crore versus Rs 2,482 crore. (QoQ)
JSW Steel (Q3, YoY)
- Stock fell as much as 5 percent to Rs 258.30.
- Revenue down 12 percent to Rs 17,805 crore.
- Net profit fell 88 percent to Rs 187 crore.
- Ebitda fell 51 percent at Rs 2,201 crore.
- Gross margin at 12.4 percent versus 22.2 percent.
APL Apollo Tubes (Q3, YoY)
- Stock rose as much as 8.9 percent to Rs 2,219.
- Revenue rose 25 percent to Rs 2,115.8 crore.
- Ebitda rose 170 percent to Rs161 crore.
- Ebitda margin at 7.6 percent versus 3.5 percent.
- Profit after tax up 5.5 times to 83.2 crore.
Bhageria Ind (Q3, YoY)
- Stock fell as much as 5.4 percent to Rs 110.
- Revenue down 6 percent to Rs 104.8 crore.
- Ebitda declined 9 percent to Rs 23.2crore.
- Ebitda margin at 22.1 percent versus 22.9 percent.
- Profit after tax rose 17 percent to Rs 17.7 crore.
Bank of Baroda (Q3,QoQ)
- Stock fell as much as 3.8 percent to Rs 92.
- Net Interest Income up 1.4 percent at Rs 7,129 crore.
- Net loss at Rs 1,407 crore versus net profit at Rs 736.7 crore.
- Provisions at Rs 6,620.6 crore versus Rs 3425.3 crore.
- Gross NPA at 10.43 percent versus 10.25 percent.
- Net NPA at 4.05 percent versus 3.91 percent.
Prestige Estates Projects (Q3, YoY)
- Stock rose as much as 5.4 percent to Rs 401.50.
- Revenue rose 2.5 times to Rs 2,680.9 crore.
- Net profit up 2.8 times to Rs 161.8 crore.
- Ebitda rose 2.1 times to Rs 718.8 crore.
- Ebitda margin at 26.8 percent versus 32.6 percent.
Emkay Global Financial Services (Q3, YoY)
- Stock swung from a gain of as much as 7.9 percent to fall as much as 3.7 percent.
- Revenue declined 1.8 percent to Rs 33.4 crore.
- Net loss at Rs 1.5 crore versus net loss at Rs 0.1 crore.
Wendt (Q3, YoY)
- Stock fell as much as 10.3 percent to Rs 2,552.
- Revenue declined 22 percent to Rs 34 crore.
- Net profit down 59.3 percent to Rs 2.2 crore.
- Ebitda down 53.8 percent to Rs 4.2 crore.
- Margin at 12.4 percent versus 20.9 percent.
F&O Check: Nifty 12,200 Call Option Premium Falls 46%
Nifty’s 12,200 call 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. 30, fell 45.49 percent to Rs 58.90. About 18.53 lakh shares were added to the open interest which stood at over 46.63 lakh shares.
Market Check: Sensex, Nifty Trade Lower
Indian stocks traded lower, halting their two-day gaining streak.
The S&P BSE Sensex fell 0.46 percent to 41,413 and the NSE Nifty 50 fell 0.52 percent to 12,185.90. The broader markets represented by the NSE Nifty 500 Index fell 0.3 percent.
Varun Beverages Gains For Fourteenth Day In A Row, Shares Hit Record High
Shares of Varun Beverages extended gains for the fourteenth consecutive trading session, on track for its record gaining streak since its listing. The stock rose as much as 0.9 percent to hit a new all-time high at Rs 857.75.
The company plans to consider raising capital via QIP on Feb. 7.
The Relative Strength Index was at 87, indicating that the stock may be overbought, Bloomberg data showed. The scrip returned 20.4 percent so far this year and advanced 66.6 percent in the past 12 months.
Vodafone Idea Falls On Rating Downgrade
Shares of Vodafone Idea fell as much as 4.1 percent to Rs 5.80.
India Ratings and Research on Friday downgraded the rating of Rs 3,500 crore non-convertible debentures of the company on account of liabilities related to adjusted gross revenue dues, according to a PTI report.
The stock declined 70 percent in the past 12 months compared to a 16 percent rally in the Sensex.
Biocon Halts Two-Day Gaining Streak On Regulatory Concerns
Shares of Biocon halted its two-day gaining streak. The stock fell as much as 2.8 percent to Rs 286.
The U.S. Food and Drug Administration conducted a pre-approval inspection and good-manufacturing practice inspection of the API manufacturing facility of the durgmaker between Jan. 20 and Jan. 24 and issued Form-483 with five observations, according to the company’s statement to the exchanges.
“Biocon will respond to the FDA with a Corrective and Preventive Action Plan (CAPA) and are confident of addressing these observations expeditiously,” the statement added.
Form 483 is used by the FDA to document and communicate concerns discovered during plant inspections.
Opening Bell: Sensex, Nifty Open Lower
Indian stocks opened lower, led by the declines in HDFC Bank Ltd. and Reliance Industries Ltd.
The S&P BSE Sensex fell 0.43 percent to 41,438 and the NSE Nifty 50 fell 0.46 pecent to 12,191. The broader markets represented by the NSE Nifty 500 Index fell 0.4 percent.
The market breadth was tilted in favour of sellers. About 859 stocks declined and 527 shares advanced on National Stock Exchange.
All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 1.8 percent fall.
Your Complete F&O Trade Setup
Index Futures
- Nifty January futures closed at 12,271.6, premium of 23.4 points versus 20.7 points.
- Nifty Jan futures OI down 2 percent, sheds 2 lakh shares in OI.
- Nifty Bank Jan futures closed at 31,330.3, premium of 88.6 points versus 86 points.
- Nifty Bank Jan futures OI 4 percent, sheds 54,000 shares in OI
Options
- Nifty PCR at 1.42 versus 1.26 (across all series)
Nifty Monthly Expiry: Jan 30
- Max OI on call side at 12,500 (37.1 lakh shares)
- Max OI on put side at 12,000 (42.8 lakh shares)
- OI addition seen at 12,200P (+10.6 lakh shares), 12,250P (+8.9 lakh shares)
- OI shedding seen at 12,200C (-6.4 lakh shares), 12,300C (-2 lakh shares)
Securities In Ban
- Yes Bank
Trading Tweaks: Axiscades Engineering, Mahindra EPC Irrigation, FCS Software Solutions
- Axiscades Engineering Technologies, Chromatic, Emkay Global Financial Services to move into ASM Framework.
- Reliance Power, Prime Focus to move out of ASM Framework.
- Century Extrusions, Inox Wind, Compuage Infocom to move out of short term ASM Framework.
- Mahindra EPC Irrigation, FCS Software Solutions to move into short term ASM Framework.
- Sadhana Nitro Chem price band revised to 10 percent.
- Gujarat Intrux price band revised to 5 percent.
Bluck Deals: GHCL, Indiabulls Housing Finance
- Indiabulls Housing Finance: Credit Suisse acquired 22.36 lakh shares (0.53 percent) at Rs 323.25 each.
GHCL
- DSP Mutual Fund acquired 15.13 lakh shares (1.54 percent) at Rs 192 each.
- RBC Emerging Markets Dividend Fund sold 13.76 lakh shares (1.4 percent) at Rs 192 each.
Money Market Update: Rupee Opens Lower
The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.25 percent to 71.51 against the greenback.
Pre-Market Check: Sensex, Nifty Set To Open Higher
Indian stocks are set to open higher.
The S&P BSE Sensex rose 0.12 percent to 41,661 during the pre-market trade and the NSE Nifty 50 rose 0.6 percent to 12,335.
How Indian ADRs Fared On Friday Night
Q3 Earnings Corner: Bank of Baroda, Dr. Reddy's, HDFC, ICICI Bank, IndiGo, JSW Steel
Nifty Earnings To Watch
- Dr Reddy's Laboratories
- Housing Development Finance Corporation
Other Earnings To Watch
- IIFL Finance
- InterGlobe Aviation
- JK Paper
- Torrent Pharmaceuticals
- Mahindra Lifespace Developers
- Mold-Tek Packaging
- Mold-Tek Technologies
- Music Broadcast
- Navin Fluorine International
- TTK Prestige
- United Spirits
- V2 Retail
- Wockhardt
- Orient Paper & Industries
- PTC India Financial Services
- Shanthi Gears
- Tata Steel Long Products
- TCI Express
- Confidence Petroleum India
- Bhansali Engineering Polymers
- CCL Products
- DCM Shriram
- Gandhi Special Tubes
- Gulshan Polyols
- H.G. Infra Engineering
- HCL Infosystems
- Kriti Nutrients
- Kriti Industries
- Lakshmi Machine Works
Earnings Reaction To Watch
ICICI Bank (Q3, YoY)
- Net interest income rose 24 percent to Rs 8,546 crore.
- Profit after tax up 1.5 times to Rs4,146 crore.
- Provisions at Rs 2,083 crore versus 2,506 crore.
- Gross NPA at 5.95 percent versus 6.37 percent. (QoQ)
- Net NPA at 1.49 percent versus 1.60 percent. (QoQ)
- Slippages at Rs 4,363 crore versus Rs 2,482 crore. (QoQ)
JSW Steel (Q3, YoY)
- Revenue down 12 percent to Rs 17,805 crore.
- Net profit fell 88 percent to Rs 187 crore.
- Ebitda fell 51 percent at Rs 2,201 crore.
- Gross margin at 12.4 percent versus 22.2 percent.
APL Apollo Tubes (Q3, YoY)
- Revenue rose 25 percent to Rs 2,115.8 crore.
- Ebitda rose 170 percent to Rs161 crore.
- Ebitda margin at 7.6 percent versus 3.5 percent.
- Profit after tax up 5.5 times to 83.2 crore.
Bhageria Ind (Q3, YoY)
- Revenue down 6 percent to Rs 104.8 crore.
- Ebitda declined 9 percent to Rs 23.2crore.
- Ebitda margin at 22.1 percent versus 22.9 percent.
- Profit after tax rose 17 percent to Rs 17.7 crore.
Bank of Baroda (Q3,QoQ)
- Net Interest Income up 1.4 percent at Rs 7,129 crore.
- Net loss at Rs 1,407 crore versus net profit at Rs 736.7 crore.
- Provisions at Rs 6,620.6 crore versus Rs 3425.3 crore.
- Gross NPA at 10.43 percent versus 10.25 percent.
- Net NPA at 4.05 percent versus 3.91 percent.
Prestige Estates Projects (Q3, YoY)
- Revenue rose 2.5 times to Rs 2,680.9 crore.
- Net profit up 2.8 times to Rs 161.8 crore.
- Ebitda rose 2.1 times to Rs 718.8 crore.
- Ebitda margin at 26.8 percent versus 32.6 percent.
Emkay Global Financial Services (Q3, YoY)
- Revenue declined 1.8 percent to Rs 33.4 crore.
- Net loss at Rs 1.5 crore versus net loss at Rs 0.1 crore.
Wendt (Q3, YoY)
- Revenue declined 22 percent to Rs 34 crore.
- Net profit down 59.3 percent to Rs 2.2 crore.
- Ebitda down 53.8 percent to Rs 4.2 crore.
- Margins at 12.4 percent versus 20.9 percent.
Stocks To Watch: Ciple, Prestige Estate Projects, Vodafone Idea
- Cipla received 4 observations by U.S. FDA, which conducted inspection at company’s Bangalore’s API manufacturing facilities from Jan. 20-24.
- Prestige Estate Projects: Board approved allotment of 1.34 crore shares on a preferential allotment basis at Rs 325 per share, aggregating to Rs 437 crore to GIC’s unit Gamnat.
- Vodafone Idea: India Ratings & Research downgraded the rating on NCDs worth Rs 3500 crore from IND BBB to IND BBB-. The downgrade is on account of crystallisation of adjusted gross revenue-related liabilities, post the dismissal of the review petition by the Supreme Court.
- Siemens entered into definitive agreement to acquire 99.22 percent stake in C&S Electric for Rs 2120 crore. The acquisition is expected to be completed by December 2020.
- Power Grid Corporation said that it has filed an application for clarification from the SupremeCourt on its order on the AGR issue.
- Boeing looking at setting up a flight simulator for its grounded 737 Max jet in India to help hasten its return, says SpiceJet.
- Bharat Road Network said it has received provisional completion certificate for completion of a high project in Maharashtra.
- VST Tillers Tractors entered into an understanding with Czech Republic’s Zetor Tractors for exploring joint product development of tractors.
- NHPC declared successful applicant by creditors of Jalpower Corporation.
- Sunteck Realty entered into an agreement for joint development of properties with 4 entities.
- Varun Beverages to consider raising capital via QIP on Feb. 7.
- Axis Bank to consider raising funds up to Rs 5,000 crore via NCDs.
- Cholamandalam Investment & Finance: Invesco reduced stake from 6.96 percent to 4.64 percent in the company.
Global Cues: Crude Extends Fall
- The S&P 500 Index posted its biggest drop since October amid reports that U.S. officials had confirmed two more cases of the illness, which originated in China and has also spread to several countries in Asia and to Europe.
- Crude posted the worst weekly decline in more than a year on concern that the spread of China’s coronavirus will cripple fuel demand.
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SGX Nifty Suggests Stock Losses; Asian Stocks Tumble
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.97 percent to 12,153.50 as of 8:23 a.m.
Stocks and crude oil tumbled, and havens including the yen and Treasuries jumped, as fears deepened about the rising impact of the deadly coronavirus.
Contracts on the S&P 500 Index fell more than 1 percent before paring losses and Japan’s Topix slid. Futures on Chinese shares fell more than 5 percent. The moves come on a day with limited trading options in Asia, as markets are shut in locations including China, Hong Kong, South Korea and Australia, due to holidays.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.