KEY HIGHLIGHTS
FPIs Turned Net Buyers
Foreign investors turned net buyers of Indian stocks on Friday, ending a six-day selling streak.
Foreign portfolio investors bought equities worth Rs 1,458.02 crore, according to data from the National Stock Exchange.
Domestic institutional investors remained sellers for the second day,sold stocks worth Rs 291.34 crore,snapping a 13-day buying streak on Feb 9.
Foreign institutions net bought Rs 14,398.8 crore worth of Indian equities in December, but have remained net sellers of Rs 46,878.9 crore of Indian stocks so far in 2023.
10-Year Bond Yield Rises
Yield on the 10-year bond rose 2bps to 7.36% on Friday.
Source: Bloomberg
Rupee Appreciates Against U.S. Dollar
Indian currency strengthened by 2 paise to close at 82.50 against the greenback on Friday. It closed at 82.52 on Thursday.
Source: Bloomberg
Sensex, Nifty End Lower
Indian equity benchmarks ended Friday lower after a rangebound day of trading following weak global cues and MSCI rejig of Adani group stocks weighting in its indexes.
Asian markets declined and stocks in Europe slid in the wake of a treasuries sell off as the prospect of higher interest rates continued to mount on the back of the Federal Reserve’s battle against inflation. Futures on the S&P 500 and Nasdaq 100 fluctuated after Thursday’s retreat on Wall Street.
The S&P BSE Sensex closed down 124 points or 0.20% at 60,682.70 while the NSE Nifty 50 was 37 points or 0.21% lower at 17,856.50.
Tata Motors Ltd., UPL Ltd., Cipla Ltd., Hero MotoCorp Ltd., and Larsen and Toubro Ltd. were the top gainers in the gauge.
Whereas, Adani Enterprises Ltd., HCL Technologies Ltd., Hindalco Industries Ltd., Tata Steel Ltd., and Coal India Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices ended higher; S&P BSE MidCap was up 0.04%, whereas S&P BSE SmallCap was higher by 0.48%.
Nine out of the 20 sectors compiled by BSE declined, while ten advanced in trade.
The market breadth was skewed in favour bulls. About 1,874 stocks rose, 1,585 declined, and 150 remained unchanged on the BSE.
After rising on a positive budget last week, the benchmarks ended the volatile week mixed as Adani Group stocks extended decline.
Sensex was down 0.26% and Nifty was higher by at 0.01% in this week. The indices rose by 2.55% and 1.42%, respectively last week.
Broader markets outperformed their larger peer this week and metals declined the led by the fall in Adani stocks.
Nifty Realty, Midcap 100, Media, Smallcap 100 and Pharma indices gained more than 1% this week.
On the other hand, Nifty Metal, FMCG and Auto declined more than 1% this week.
Most Adani Stocks Decline
Adani Group stocks declined in trade following the weight reduction initiated by the global index provider MSCI Inc., in its indexes.
Only Ambuja Cements Ltd., Adani Ports and SEZ Ltd., and Adani Wilmar Ltd. advanced in trade, whereas the four Adani group companies for which the foreign inclusion factor was reduced by MSCI this morning declined.
Adani Total Gas Ltd., Adani Transmission Ltd., Adani Enterprises Ltd., and ACC Ltd., subsequently, declined.
Source: Bloomberg
Tata Steel Declines As 63 Lakh Shares Change Hands In A Bunched Trade
Shares of Tatat Steel Ltd. declined by 2.29%, as of 2:08 p.m., to Rs 108.7 apiece in trade on Friday after 63 lakh shares changed hands in a bucnhed trade.
The stock fell as much as 2.52% intraday, the most since Feb. 7, earlier this week.
Total traded volume stood at 1.1 times its 30-day average. The relative strength index at 14, implies that the stock maybe oversold.
Out of the 33 analysts tracking the stock, 24 maintain a 'buy' rating, five recommend a 'hold' and four suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 13.8% over the next 12 months.
Source: Bloomberg, Exchange filing
European Markets Open Lower
Britannia Industries Declines After Hitting 52-Week High
Shares of Britannia Industries Ltd. declined by 0.16% to Rs 4,630 apiece in trade on Friday after hitting a 52-week high in the trading session.
The stock gained as much as 0.69% intraday, the most since 52-weeks to Rs 4,669.2 apiece.
TotThe relative strength index at 14, implies that the stock maybe oversold.
Out of the 41 analysts tracking the stock, 28 maintain a 'buy' rating, 11 recommend a 'hold' and two suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 6.2% over the next 12 months.
Source: Bloomberg, Exchange filing
Mahindra & Mahindra Q3 FY23 Highlights (YoY)
Revenue rose 30% to Rs 30,620 crore Vs Rs 23594.5 crore [BBG Estimate: Rs 21,790 crore]
Net Profit rose 35% to Rs 2,676.6 crore vs Rs 1,987.4 crore [BBG Estimate: Rs 1,723.4 crore]
EBITDA rose 16% to Rs 5,252.6 crore Vs Rs 4,526.2 crore [BBG Estimate: Rs 2,750 crore]
EBITDA margin stood at 17.2% Vs 19.2% [BBG Estimate: 12.6%]
Source: Exchange filing
PSU Banks Advance
Shares of PSU banking companies advanced in trade on Friday and the headline index NSE Nifty 50 was lower by 0.34% in trade.
The NSE PSU Bank Index was up 1.18% in trade. All 12 constituents compiled by the gauge advanced.
Punjab and Sind Bank, Central Bank of India, Union Bank of India, Bank of Maharashtra, Canara Bank, Punjaab National Bank, Indian Overseas Bank, UCO Bank, Bank of Baroda and Indian Bank advanced more than 1% in trade.
Source: NSE
Sensex, Nifty Trade Lower
Indian equity benchmarks opened lower and declined through midday on Friday amid weak Asia trade and MSCI rejig of Adani group stocks weightings.
Stocks in Asia fell after the U.S. equities dropped for a second day and Treasuries slid as investors began to adjust for the prospect of higher interest rates as the Federal Reserve battles inflation.
The S&P BSE Sensex was down 203 points or 0.33% at 60,603.62 while the NSE Nifty 50 was 61 points or 0.34% lower at 17,832.65.
Adani Ports and SEZ Ltd., Adani Enterprises Ltd., Bajaj Finserv Ltd., State Bank of India, and HDFC Life Insurance Co. were the top gainers in the gauge.
Whereas, , HCL Technologies Ltd., Hindalco Industries Ltd., Tata Steel Ltd., Hindustan Unilever Ltd., and JSW Steel Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices traded marginally higher; S&P BSE MidCap was up 0.05%, whereas S&P BSE SmallCap was higher by 0.08%.
Nine out of the 20 sectors compiled by BSE declined, while ten advanced in trade.
The market breadth was skewed in favour bulls. About 1,921 stocks rose, 1,366 declined, and 142 remained unchanged on the BSE.
Adani Group Stocks Mixed In Trade
The group companies for which the MSCI weightage has been reduced declined in trade, except Adani Enterprises Ltd., which advanced 0.80%.
India Inc Commits Investing In U.P. At The 'Uttar Pradesh Global Investors Summit 2023'
Aditya Birla Group to invest Rs 25,000 crore.
Reliance Industries to invest additional Rs 75,000 crore in 4 years across Jio, retail and renewable business.
Source: Investors summit
Vascon Engineers Wins Rs 77.42-Crore Of Order From Vedanta
Vascon Engineers Ltd. secures Rs. 77.42-crore order from Vedanta Ltd. for the development of landscape, services and infrastructure for Cairn Oil & Gas Residential Complex at Barmer, Rajasthan.
The work has to be completed within 12 months after issuing the letter of award.
Source: Exchange filing
Power Grid Corp Of India Board Approves Rs 2,200-Crore Fundarise Via Bonds
The board of Power Grid Corp of India has approved raising Rs 2,200-crore on private placement basis for the period of 10 years.
The base issues aggregates to Rs 1,700 crore with a green show option of Rs 500 crore.
The bonds will be redeemable at par in 40 equal quarterly installments starting from May 17, 2023 till Feb. 17, 2033.
Source: Exchange filing
Paytm Declines After A Large Bunched Trade
Shares of One 97 Communications Ltd., the parent of Paytm, declined on Friday after a large trade.
According to Bloomberg, at least 2.15 crore shares changed hands in at least one bunched trade.
The scrip fell as much as 9.34%, the most since Nov.22, 2022.
As of 9:41 a.m., it was down 5.87% to Rs 664.5 compared to 0.42% decline in benchmark Nifty 50. Total traded quantity so far in the day stood at 26.2 times the 30-day average.
The relative strength index stood at 66.
Of the 12 analysts tracking the company, nine recommended 'buy', three suggested a 'hold', while none maintained 'sell'. The return potential of the stock implies a potential upside of 38.3%, according to Bloomberg.
Source: Bloomberg
Suzlon Rises After Report Q3 Earnings
Shares of Suzlon Energy Ltd. advanced in trade on Friday after the company reported it's third-quarter earnings.
Suzlon Energy Q3 FY23 (Consolidated, YoY)
Revenue down 9.26% at Rs 1,448.9 crore
Ebitda down 24.44% at Rs 206.3 crore
Ebitda margin at 14.24% vs 17.1%
Net profit up 107.91% at Rs 78.4 crore
The stock rose as much as 2.22% in trade, it gained as much as 4.89% intraday, the most since Jan. 31, 2023.
Total traded volume stood at 1.3 times its 30-day average. The relative strength index at 15 implies that the stock maybe oversold.
Source: Bloomberg, Exchange filing
Voltas Declines As Q3 Earnings Misses Estimates
Shares of Voltas Ltd declined in trade the third-quarter earnings missed the analyst estimates.
Voltas Q3 FY23 (Consolidated, YoY)
Revenues up 11.82% at Rs 2,005.6 crore (Bloomberg estimate: Rs 1,900.8 crore)
Ebitda down 50.93% at Rs 76.4 crore (Bloomberg estimate: Rs 129.5 crore)
Ebitda margin at 3.81% vs 8.68% (Bloomberg estimate: 6.8%)
Net loss of Rs 110.4 crore vs net profit of Rs 95.9 crore (Bloomberg estimate: Rs 103.9 crore)
The stock declined as much as 1.25% in trade, it fell as much as 3.46% intraday, the most since Dec. 23, 2022.
Total traded volume stood at 7.6 times its 30-day average. The relative strength index at 15 implies that the stock maybe oversold.
Out of the 44 analysts tracking the company, 20 maintain a 'buy' rating, 16 recommend a 'hold' and seven suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 19.3% over the next 12 months.
Source: Bloomberg, Exchange filing
Sensex, Nifty Extend Decline As I.T., Metal Stocks Fall
LIC Advances As Q3 Earnings Beat Estimates
Shares of Life Insurance Corporation India advanced in trade on Friday as the company's standalone profit surged and its premium income rose in the third quarter over last year.
The state-owned insurer's standalone after-tax profit jumped around 26 times to Rs 6,334 crore from Rs 235 crore over the same period in the previous fiscal, according to an exchange filing.
The net premium of the company increased by 15% year-on-year to Rs 1.12 lakh crore.
Life Insurance Corporation of India Q3 FY23 (Standalone, YoY)
Revenue up 13% at Rs 1.96 lakh crore (Bloomberg estimate: Rs 1.1 lakh crore)
Net profit up 26 times to Rs 6,334 crore (Bloomberg estimate: Rs 4580.8 crore)
Net premium income up 15% at Rs 1.12 lakh crore
The stock rose as much as 2.32% at Rs 627.35 apiece in trade. It rose about 4.38% intraday, the most since Jan. 2, 2023.
Most Adani Group Stocks Decline In Trade
Only Ambuja Cements Ltd. and Adani Ports and SEZ Ltd. traded marginally higher on Friday in early trade.
Source: Bloomberg
MSCI Tweaks Foreign Investor Factor For Adani Stocks
Sensex, Nifty Decline At Opening Bell
Indian equity benchmarks declined amid weak Asia trade and MSCI rejig of weightings Adani group stocks in its indexes.
Asia markets declined on Friday after U.S. stocks fell for a second day and Treasury yields climbed as investors began to adjust for the possibility of higher interest rates as the Federal Reserve fights inflation.
The S&P BSE Sensex opened down 99 points or 0.16% at 60,706.81 while the NSE Nifty 50 was 46 points or 0.26% lower at 17,847.55.
Yield On The 10-Year Bond Rises
The yield on the 10-year bond opened 2 bps higher at 7.36% on Friday. It closed at 7.34% on Thursday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakens by 11 paise against the greenback on Friday to 82.63 at open. It closed 82.52 on Thursday.
Source: Bloomberg
MSCI Reduces Weight Of Adani Group Stocks
Global index provider, MSCI Inc. has changed the foreign investor factor for four Adani group companies in its February quarterly review.
While the stocks weren't added or excluded from the index in the current review, further changes are expected in MSCI's semi-annual review, scheduled to be released on May 11, 2023.
Source: MSCI
OMCs May Do Well; Internet Businesses May Consolidate: Trade Setup
Global Cues
U.S. Dollar Index at 103.28
U.S. 10-year bond yield at 3.67%
Brent crude down 0.30% to $84.25 per barrel
Nymex crude at $77.76 per barrel
SGX Nifty down 0.55% to 17,831 as of 8:15 a.m.
Bitcoin down 0.11% to $21,900.88
Q3 Earnings Results
Mahindra & Mahindra, Bharat Heavy Electricals, Oil India, Glenmark Pharmaceuticals, National Aluminium Company, Alkem Laboratories, Delhivery, ABB India, Fortis Healthcare, JK Lakshmi Cement, Abbott India, Ashoka Buildcon, BEML, Kirloskar Oil Engines, VA Tech Wabag, Garden Reach Shipbuilders & Engineers, Dishman Carbogen Amcis, PB Fintech, Gokaldas Exports, Alicon Castalloy, Nocil, Rupa & Co., Indigo Paints, Metropolis Healthcare, Lemon Tree Hotel, VST Tillers Tractors, RateGain Travel Technologies, Hariom Pipe Industries, Sanghvi Movers, JM Financial, Reliance Capital, Archean Chemical Industries, Cochin Shipyards, Dilip Buildcon, Dhanuka Agritech, Dish TV India, Grauer & Well (India), GRM Overseas, Indiabulls Real Estate, Inox Green Energy Services, Inox Wind, Rail Vikas Nigam, Religare Enterprises, Astra Microwave Products, AstraZeneca Pharma India, Balmer Lawire & Co., Bannari Amman Sugars, DFM Foods, Dhani Services, Dynamatic Technologies, EIH, EKI ENergy Services, Electronics Mart India, ESAB India, Excel Industries, Goldiam International, Garware Hi-Tech Films, Gufic Biosciences, Hemisphere Properties India, Himadri Specialty Chemical, Indo Rama Synthetics (India), Ingersoll-Rand (India), Inox Wind Energy, Jyoti Resins and Adhesives, KCP, Kennametal India, KFin Technologies, Kirloskar Brothers, Kovai Medical Center & Hospital, Media Matrix Worldwide, Info Edge (India), Paisalo Digital, Pilani Investment and Industries Corporation, Pix Transmissions, Primo Chemicals, Puravankara, Ramky Infrastructure, Rattanindia Enterprises, Sarda Energy & Minerals, Satia Industries, Shivalik Rasayan, SML Isuzu, Ugar Sugar Works, Universal Cables, Venky's (India), Vidhi Specialty Food Ingredients, Vindhya Telelinks, Vishnu Chemicals, West Coast Paper Mills, Xchanging Solutions
Earnings Fineprint
Life Insurance Corporation of India Q3 FY23 (Standalone, YoY)
Revenue up 13% at Rs 1.96 lakh crore (Bloomberg estimate: Rs 1.1 lakh crore)
Net profit up 26 times to Rs 6,334 crore (Bloomberg estimate: Rs 4580.8 crore)
Net premium income up 15% at Rs 1.12 lakh crore
Adani Total Gas Q3 Earnings (Consolidated, QoQ)
Revenue down 0.9% at Rs 1105.5 crore
Ebitda up 1.6% at Rs 229.9 crore
Ebitda margin at 20.8% vs 20.3%
Net profit down 6.1% at Rs 150.2 crore
Suzlon Energy Q3 FY23 (Consolidated, YoY)
Revenue down 9.26% at Rs 1,448.9 crore
Ebitda down 24.44% at Rs 206.3 crore
Ebitda margin at 14.24% vs 17.1%
Net profit up 107.91% at Rs 78.4 crore
Voltas Q3 FY23 (Consolidated, YoY)
Revenues up 11.82% at Rs 2,005.6 crore (Bloomberg estimate: Rs 1,900.8 crore)
Ebitda down 50.93% at Rs 76.4 crore (Bloomberg estimate: Rs 129.5 crore)
Ebitda margin at 3.81% vs 8.68% (Bloomberg estimate: 6.8%)
Net loss of Rs 110.4 crore vs net profit of Rs 95.9 crore (Bloomberg estimate: Rs 103.9 crore)
Pfizer Q3 FY23 (Consolidated, YoY)
Revenue down 8% at Rs 622 crore (Bloomberg estimate: Rs 701 crore)
Ebitda up 4% at Rs 203 crore (Bloomberg estimate: Rs 220 crore)
Ebitda margin at 32.7% vs 28.9% (Bloomberg estimate: 31.4%)
Net profit up 5% at Rs 151 crore (Bloomberg estimate: Rs 161 crore)
Hindustan Petroleum Corporation (Consolidated, QoQ)
Revenue up 1.13% at Rs 1,09,687.9 crore (Bloomberg estimate: Rs 1,08,514.6 crore)
Ebitda at Rs 1,674.1 crore vs Ebitda loss of Rs 1,514.7 crore (Bloomberg estimate: Rs 1,576.3 crore)
Ebitda margin at 1.53% (Bloomberg estimate: 1.5%)
Net profit of Rs 444.3 crore vs net loss of Rs 2,475.7 crore (Bloomberg estimate: Rs 509 crore)
Zomato Q3 FY23 (Consolidated, QoQ)
Revenue up 17.2% at Rs 1,948.2 crore (Bloomberg estimate: Rs 1,785.8 crore)
Ebitda loss at Rs 366.2 crore vs Rs 418 crore (Bloomberg estimate: Rs 352.9 crore loss)
Net loss at Rs 346.6 crore vs Rs 250.8 crore (Bloomberg estimate: Rs 321.2 crore loss)
Aurobindo Pharma Q3 FY23 (Consolidated, YoY)
Revenue up 7% at Rs 6,407 crore (Bloomberg estimate: Rs 6,142 crore)
Ebitda down 6% at Rs 954 crore (Bloomberg estimate: Rs 992 crore)
Ebitda margin at 14.9% Vs 16.9% (Bloomberg estimate: 16.1%)
Net profit down 19% at Rs 491 crore (Bloomberg estimate: Rs 553 crore)
Lupin Q3 FY23 (Consolidated, YoY)
Revenue up 4% at Rs 4,322 crore (Bloomberg estimate: Rs 4,257 crore)
Ebitda up 39% at Rs 516 crore (Bloomberg estimate: Rs 572 crore)
Ebitda margins at 11.9% Vs 8.9% (Bloomberg estimate: 13.4%)
Net profit down 72% at Rs 153 crore (Bloomberg estimate: Rs 220 crore)
Bajaj Consumer Care Q3 FY23 (Consolidated, YoY)
Revenue up 0.32% at Rs 229.6 crore
Ebitda declined 16% to Rs 32.5 crore (Bloomberg estimate: Rs 32.9 crore)
Ebitda margin at 14.1% vs 16.9%
Net profit up 14% at Rs 33.2 crore
Stocks To Watch
Zomato: Shareholder Ant Group’s nominee Douglas Feagin resigned as a director on the board of the company.
Mahindra & Mahindra: The company signed an MoU with the Telangana government to expand its existing Zaheerabad Plant in Medak district for development and production of electric three- and four-wheelers. The SUV maker will spend Rs 1,000 crore over eight years on this front.
GAIL (India): The company signed an advanced pricing agreement with Central Board of Direct Taxes to determine the transfer pricing margin payable on its long-term LNG sourcing contract from the U.S. for the period of five years.
ITC: ITC Infotech, a wholly owned subsidiary of the company, incorporated a subsidiary in France named ITC Infotech France SAS on Feb. 8.
Pfizer: The board appointed Meenakshi Nevatia as managing director of the company for five years, effective April 3, 2023, as incumbent MD S Sridhar expressed his intention to take an early retirement.
Aurobindo Pharma: The company will transfer units constituting its API non-antibiotic division to subsidiary Auro Pharma India via slump sale.
Bank of Baroda: The bank hiked lending rate across tenors by five basis points, effective Feb. 12, 2023.
SGX Nifty Points Towards Lower Open For Indian Stocks
Asia markets declined on Friday after U.S. stocks fell for a second day and Treasury yields climbed as investors began to adjust for the possibility of higher interest rates as the Federal Reserve fights inflation.
The index provider, MSCI Inc., made no mention of Adani Group-linked shares in its February statement on the quarterly review of its gauges.
At 8:15 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was down 0.55% at 17,831.
The S&P 500 fell 0.9% on Thursday, reversing gains of nearly 1%. The Nasdaq 100 fell by a similar margin and faces its first weekly decline this year.
The yield on 10-year U.S. Treasury notes was at 3.67%. Crude oil was trading around $84 per barrel, while Bitcoin was trading below the $22,000 level.
The Indian benchmark indices gained at the close as I.T. stocks staged a recovery during the second half of the session.
The rupee closed higher against the U.S. dollar after paring most of its losses from the opening trade.
Overseas investors in Indian equities remained net sellers for the sixth day in a row on Thursday. Foreign portfolio investors offloaded equities worth Rs 144.7 crore, while domestic institutional investors sold stocks worth Rs 205.3 crore, snapping the 13-day buying streak.
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