Sensex, Nifty Log Second Worst Week In Two Months

India's stock benchmarks declined in a volatile session, dragged by losses in banking and auto stocks.

The S&P BSE Sensex and NSE Nifty 50 logged the second worst week in 2022.

PSU Banks advanced during the week with the Nifty PSU Bank index adding nearly 7%. On the flipside, Nifty IT index fell over 6% while Nifty Realty shed over 5% in the week.

For the week, both the benchmarks fell over 3%. Sensex and Nifty have fallen in seven of the last eight sessions.

On Friday's session, The Sensex fell 0.13% to 57,200.23. The 30-stock gauge rose 1.41% to an intraday high of 58,084.23 before shedding nearly 1,000 points in a volatile session. The NSE Nifty closed little changed at 17,101.95. The 50-stock gauge rose over 1.54% to an intraday high of 17,373.50.

Maruti Suzuki India Ltd. had the largest drop, falling 3.1%. Today, 19 of 50 shares fell, while 31 rose.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap gaining over 1%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Healthcare, Basic Materials and Information Technology adding 1%.

The market breadth was skewed in the favour of bulls. About 1,988 stocks advanced, 1,365 declined and 105 remained unchanged.

"At present, the Index has support at 16,830 levels while resistance comes at 17,450 levels, crossing either side can suggest further direction. On the other hand, Bank nifty has support at 37,000 levels while resistance at 38,500 levels", said Palak Kothari, Research Associate at Choice Broking.

"All eyes are on the Union Budget now. We expect a growth-friendly budget but also expect the government to lay out a path for fiscal consolidation. Besides, earnings and global cues would remain on participants’ radar. We reiterate our cautious view and suggest continuing with hedged positions", Ajit Mishra, VP - Research, Religare Broking Ltd. wrote in a note

Vedanta reported net income for the third quarter that missed the average analyst estimate.

December Quarter Numbers (Consolidated)

• Net income at Rs 4,164 crore vs Rs 4,616 crore QoQ (Bloomberg consensus estimate: Rs 4,832 crore)

• Revenue at Rs 33,697 crore vs Rs 30,048 croore QoQ (Estimate: Rs 33,212 crore)

• Total costs at Rs 26,845 crore vs Rs 23,222 crore QoQ

• Other income at Rs 577 crore vs Rs 673 crore QoQ.

Source: Exchange Filing

Shares of Chambal Fertilisers and Chemicals Ltd. fell as much as 5.38%, the steepest intraday decline in three sessions to Rs 430.5 apiece after the company reported net income for the third quarter that missed the average analyst estimate.

December Quarter Results (Consolidated)

• Net income down 14% QoQ at 435.17 crore vs Bloomberg consensus estimate of Rs 449 crore

• Revenue up 6% QoQ at Rs 4,743.33 crore vs estimate of Rs 4,252 crore

• Total costs at Rs 4,260.89 crore vs Rs 3,841.78 crore

• Company approved an interim dividend of Rs 4.50 per share.

All the four analysts tracking the company maintained 'buy' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 4.1%.

Source: Exchange Filing, Bloomberg

Shares of Dixon Technologies India Ltd. fell 6.22%, the steepest intraday decline in three sessions, to Rs 4,117.5 after the company reported net income for the third quarter that missed the average analyst estimate.

December Quarter Results (Consolidated, QoQ)

• Net income down 26% at Rs 46.38 crore vs Rs 62.64 crore ( Bloomberg consensus estimate: Rs 68.3 crore)

• Revenue up 10% at Rs 3,073.25 crore vs Rs 2,803.78 crore (Estimate: Rs 3,229 crore)

• Total costs at Rs 3,010.43 crore vs Rs 2,724.50 crore

Of the 23 analysts tracking the company, 15 maintained 'buy', five maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 22.2%.

Source: Exchange Filing, Bloomberg

Dr. Reddy's Laboratories Ltd. reported net income for the quarter-ended December that missed the average analyst estimate.

Third Quarter Results (Consolidated, YoY)

• Revenue up 8% at Rs 5,338.3 crore Vs Rs 4,941.9 crore (Bloomberg consensus estimate : Rs 5,456.2 crore)

• Net profit up 2442% to Rs 709.3 crore from Rs 27.9 crore (Estimate : Rs 742.6 crore)

• Ebitda grew 1.25 times to Rs 1,215.7 crore from Rs 539.3 crore (Estimate : Rs 1,220.6 crore)

• Margins at 22.8% Vs 10.9% (Estimate : 22.4%)

• EPS at Rs 42.75 per share Vs Rs 1.68 (Estimate : Rs 44.52)

The company conducted trials for Sputnik light and are also developing several other covid-related drugs for treatment ranging from mild to severe conditions.

Of the 42 analysts tracking the company, 36 maintained 'buy', five maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of nearly 28%.

Source: Exchange Filing, Bloomberg

• Embassy REIT reported distribution per unit for the third quarter of Rs 5.20 vs Rs 4.55 YoY.

• Net operating income in Q3 at Rs 621 crore, up 30% YoY

Commentary & Context

• Company raises full-year net operating income by 3%.

• Full-year net operating income at Rs 2,450 crore.

• Company also raises full-year distribution/unit guidance.

Source: Bloomberg, Exchange Filing

• All approvals, including from RBI, received.

• NARCL will aggregate bad assets from banks and IDRCL will manage these assets under exclusive arrangement.

• The arrangement will be on principal-agent basis.

• Arrangement will comply with applicable regulatory guidelines at all times.

• Public sector banks have taken majority equity stake in NARCL.

• We plan to acquire the identified assets on a 15:85 structure.

• The security receipts will be secured by the government.

• Both companies have their respective boards in place and MD & CEOs have been appointed for both.

• Rs 50,000 crore worth assets will be transferred to NARCL in phase 1 this fiscal.

• All the issues have been ironed out and appropriately addressed.

• The main difference between existing ARCs and NARCL is the government guarantee.

• In private ARCs, there is no committed arrangement with a resolution agency.

• This will ensure quick resolution of the problems.

• Joint lender forums of various assets have already agreed to transfer of assets.

• There will be 15 accounts transferred in the first phase.

• Some of the assets identified by us previously have been resolved.

• An auction process and a Swiss challenge will need to be conducted before the transfer.

• A total of 28 accounts worth Rs 83,000 crore will be transferred to NARCL.

• The Rs 2 lakh crore pool of assets identified previously still remains under consideration.

• The decision to transfer these accounts or to resolve them internally will be taken next year.

• The assets identified for transfer are fully provided for.

• When it comes to the ability to resolve the account, IDRCL will have full freedom.

Source: SBI conference call

India's stock benchmarks advanced, aided by gains in healthcare, information technology, metal, basic materials and utilities stocks, amid a rebound in global equities.

The S&P BSE Sensex rose 1.25% to 57,994.86. The 30-stock gauge gained over 800 points to an intraday high of 58,084.33. The NSE Nifty 50 also advanced by similar magnitude to 17,348.90.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap gaining over 2.5%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty gaining over 3%.

The market breadth was skewed in the favour of bulls. About 2,499 stocks advanced, 785 declined and 89 remained unchanged.

• Reliance Industries Ltd. has another 1.22 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately

• About 1.2 million shares of RIL changed hands in a large trade earlier in the session

Source: Bloomberg

Maturities across the India sovereign yield curve were little changed in Friday morning trading.

• The 5-year yield fell 0.9bps to 5.972%

• The 10-year yield fell 0.9bps to 6.738%

• The 18-year yield remained unchanged at 7.133%

• The 5-year-10-year yield spread was 76.6bps, vs previous close 76.5bps

• The NSE Nifty 50 Index rose 1.3%

Source: Bloomberg

• Reliance Industries Ltd. has 1.2 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Larsen & Toubro Ltd.'s subsidiary L&T Hydrocarbon Engineering Ltd. secured a 'large' contract from ONGC for the seventh development phase of their pipeline replacement projects.

• The order value is in the range of Rs 2,500 crore-Rs 5,000 crore.

• Shares of Larsen & Toubro rose nearly 1.5% in intraday trade. Trading volume on the stock is nearly twice the 30-day average volume, at this time of the day.

• The company is set to announce its December-quarter earnings today.

• Of the 43 analysts tracking the company, 41 maintained 'buy', one maintained 'hold' and one maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 16.3%.

Source: Exchange Filing

India's stock benchmarks opened higher; aided by gains in banking, information technology, telecom, metal stocks, amid a recovery in global equities.

The S&P BSE Sensex rose over 1% to 57,872.24. The NSE Nifty 50 also advanced by similar magnitude to 17,297.45.

The broader markets outperformer theire larger peers with the S&P BSE MidCap rising 1.4% and S&P BSE SmallCap gaining 1.6%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Telecom gaining over 2.3%.

The market breadth was skewed in the favour of bulls. About 2,010 stocks advanced, 564 declined and 67 remained unchanged.

As part of its Google for India Digitization Fund, Google will invest $700 million to acquire 1.28% ownership in Airtel.

• It will invest up to $300 million toward potential multi-year commercial agreements.

• The partnership will focus on enabling affordable access to smartphones across price ranges.

• This deal will be subject to necessary regulatory approvals.

Source: Exchange filing

• Blackstone launches Horizon Industrial Parks, a portfolio of logistics parks in India, company says in a statement.

• Portfolio has been assembled through a number of investments including Embassy Industrial Parks, TARC, and Allcargo.

Source: Bloomberg

Piramal Enterprises Ltd. said that the DHFL acquisition by the group remains unaffected and the business integration continues as envisaged.

• The comments come after most appeals filed before the NCLAT against Piramal's approved DHFL resolution plan were disposed off on Thursday.

• With regard to NLCAT's order on an appeal challenging the distribution of proceeds from fraudulent transactions to the benefit of resolution applicant, Piramal Enterprises said that it will pursue the matter as multiple legal options are available.

• Piramal Capital & Housing Finance acquired DHFL for Rs 34,250 crore in September 2021.

Source: Exchange Filing

• United Spirits raised to 'buy' from 'hold' at Investec; price target set at Rs 1,006.

• Mahindra Logistics cut to 'reduce' from 'hold' at ICICI Securities; price target set at Rs 563.

Source: Bloomberg

• Macrotech Developers Ltd. reinstated as 'neutral' at JPMorgan; price target set at Rs 1,200.

• RBL Bank raised to 'reduce' from 'sell' at Spark Capital Advisors; price target set at Rs 143.

• Pidilite Industries cut to 'reduce' from 'add' at Spark Capital Advisors; price target set at Rs 2,400.

Source: Bloomberg

India's bond traders are awaiting a weekly debt sale which includes the new 10-year paper. The rupee is headed for its biggest five-day drop since October.

• RBI to hold Rs 5 lakh crore rupee 14-day reverse repo auction on Friday.

• USD/INR rose 0.4% to 75.0688 on Thursday, taking its gain so fair this week to 0.9%.

• 10-year yields rose 9bps to 6.75% on Thursday, highest since Dec. 2019.

• Global funds sold a net Rs 6,270 crore of India stocks Thursday: NSE

• They sold Rs 433 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 72 crore of corporate debt.

• State-run banks bought Rs 885 crore of sovereign bonds on Jan. 27: CCIL data. Foreign banks sold Rs 332 crore of bonds.

Source: Bloomberg

Vedanta Ltd. raised Rs 8,000 crore secured term loan from Union Bank of India at 7.75% in December, Economic Times reported citing people familiar with the matter.

• The company raised new loan by pledging its Hindustan Zinc shares.

• It used the proceeds to prepay debt raised at over 10% two years ago.

• Vedanta and Union Bank of India did not respond to requests for comments: ET.

Asian stocks on Friday recovered some of the losses sparked by the Federal Reserve’s pivot to tighter monetary policy, while U.S. equity futures climbed after strong Apple Inc. earnings aided sentiment.

Shares rose in Japan and Australia but South Korea fluctuated. Contracts on the tech-heavy Nasdaq 100 outperformed S&P 500 futures following a rally in Apple Inc. in extended trading on record sales.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, fell 0.65% to 17,109 as of 7:55 a.m.

Treasuries were steady and the yield curve flatter. Oil advanced and gold struggled.

Indus Towers Q3FY22 (Consolidated, YoY)

• Revenue up 71% at Rs 6,927.4 crore Vs Rs 4,060.7 crore

• Net profit up 60% at Rs 1,570.8 crore Vs Rs 979.10 crore

• Ebitda up 77% at Rs 3,694.10 crore Vs Rs 2,082.7 crore

• Margins at 53.3% Vs 51.3%

Bharat Heavy Electricals Ltd Q3FY22 (Consolidated, YoY)

• Revenue up 15% at Rs 5,135.9 crore Vs Rs 4,451.36 crore

• Net profit at Rs 27.02 crore Vs Net loss of Rs 217.44

• Ebitda gain of Rs 89.21 crore Vs Ebitda loss of Rs 180.41 crore

Punjab National Bank Q3FY22 (Standalone)

• NII down 7% at Rs 7,803.24 crore Vs Rs 8,345.75 (YoY)

• Net profit at Rs 1,126.78 crore Vs Rs 506.03 crore (YoY)

• Provision up 3% QoQ at Rs 3,353.55 crore

• GNPA at 12.88% Vs 13.63% (QoQ)

• NNPA at 4.90% Vs 5.49% (QoQ)

Dalmia Bharat Q3FY22 (Consolidated, QoQ)

• Revenue at Rs 2,731 crore Vs Rs 2,737 crore

• Net profit down 48% at Rs 95 crore Vs Rs 182 crore

• Ebitda down 40% at Rs 411 crore Vs Rs 685 crore

• Margins at 15% Vs 25%

RBL Bank Q3FY22

• Net profit up 6.1% at Rs 156 crore Vs Rs 147 crore (YoY) (Bloomberg estimate: Rs 75.7 crore)

• NII up 11.2% at Rs 1,010.42 crore Vs Rs 908.15 crore (YoY)

• Gross NPA ratio at 4.84% Vs 5.40% (QoQ)

• Net NPA ratio at 1.85% Vs 2.14% (QoQ)

LIC Housing Finance Q3FY22 (Standalone, YoY)

• NII up 15% at Rs 1,508.34 crore Vs Rs 1,311.67 crore

• Net profit up 6% at Rs 767.33 crore Vs Rs 727.04 crore

Coforge Q3FY22 (Consolidated, QoQ)

• Revenue up 6% at Rs 1,658.10 crore Vs Rs 1,569.40 crore

• Net profit up 51% at Rs 183.70 crore Vs Rs 122 crore

• Ebit up 15% at Rs 246.70 crore Vs Rs 214.9 crore

• Margins at 14.9% Vs 13.7%

• Declared third interim dividend of Rs 13 per equity share.

Birlasoft Q3FY22 (Consolidated, YoY)

• Revenue up 22% at Rs 1,071.90 crore Vs Rs 880.77 crore

• Net profit up 18% at Rs 113.96 crore Vs Rs 96.38 crore

• Ebitda up 13% at Rs 162.75 crore Vs Rs 144.42 crore

• Margins at 15.2% Vs 16.4%

Nippon Life India Asset Management Q3FY22 (Consolidated, YoY)

• Revenue up 26% at Rs 338.53 crore Vs Rs 268.46 crore

• Net profit down 18% at Rs 174.05 crore Vs Rs 211.95 crore

• Ebitda up 44% at Rs 212.16 crore Vs Rs 146.96 crore

• Margins at 62.7% Vs 54.7%

C.E. Info Systems Q3FY22 (Standalone, YoY)

• Revenue down 11% at Rs 43.05 crore Vs Rs 48.53 crore

• Net profit down 30% at Rs 15.75 crore Vs Rs 22.45 crore

• Ebitda down 22% at Rs 15.11 crore Vs Rs 19.26 crore

• Margins at 35.1% Vs 39.7%

Wabco India Q3FY22 (YoY)

• Revenue up 15% at Rs 652.92 crore Vs Rs 566.49 crore

• Net profit down 39% at Rs 31.83 crore Vs Rs 52.42 crore

• Ebitda down 33% at Rs 58.67 crore Vs Rs 87.73 crore

• Margins at 9% Vs 15.5%

• TVS Motor: Has acquired 75% stake in the Swiss E-Mobility Group at 525.58 CHF (Swiss Franc) on cash consideration. It plans to acquire the balance 25% stake in SEMG by next year.

• Centrum: The company’s step down subsidiary Unity Small Finance Bank took charge of 110 branches of PMC Bank. Unity Small Finance Bank will immediately repay 96% of PMC Bank's depositors who have deposits worth Rs 5 lakh or less. The banks’ shareholders have committed capital of over Rs 3,000 crore through cash and warrants.

• Lupin: Has entered a promotional agreement with Exeltis USA Inc.to promote Solosec, along with Exeltis’ existing line of women’s health products.

• Motilal Oswal: Declared interim dividend of Rs 7 per share.

• Kirloskar Oil Engines: Has appointed Gauri Kirloskar to supervise day-to-day operations for the interim period as managing director Sanjeev Nimkar has resigned.

• Jubilant Ingrevia: Will consider declaration of interim dividend on Feb. 1.

• Advanced Enzyme Technologies: The company’s subsidiary SciTech Specialities has approved investment in Vecteng SciTech, South Africa by acquiring 14% of paid-up share capital of Vecteng for Rs 10.9 lakh ($14,500).

• Sandhar: Entered a shareholders agreement with Kwangsung Corp., Kwangsung Sandhar Technologies and Kwangsung Sandhar Automotive Systems for acquisition of equity shares in the 50:50 ratio of fresh issue.

• Jubliant Foodworks: The acquisition of additional 39% stake in JGHL from Golden Harvest QSR by the company is now likely to be completed by April 27, 2022.

• Accelya: Declared interim dividend of Rs 17 per share.

• Kewal Kiran Clothing: Declared second interim dividend of Rs 4 apiece.

• Earnings Today: Atul, Asahi India Glass, AU Small Finance Bank, Bharat Electronics, Blue Dart Express, Britannia Industries, CARE Ratings, Central Bank of India, Century Plyboards India, Chambal Fertilisers and Chemicals, Crompton Greaves Consumer Electricals, Deepak Fertilisers & Petrochemicals, Dixon Technologies, Dr Reddy's Laboratories, Equitas SFB, Great Eastern Shipping, Gujarat State Fertilisers and Chemicals, Happiest Minds, Info Edge India, Larsen & Toubro, Max Financial Services, Marico, Oberoi Realty, United Breweries, Vedanta