Stock Market Today: Sensex, Nifty Halt Three Day Gaining Streak As Banks, I.T. Pharma Drag

Foreign investors in Indian equities turned net sellers on Friday, ending a five-day buying streak.

Foreign portfolio investors offloaded up equities worth Rs 624.61 crore, according to data from the National Stock Exchange.

Domestic institutional investors snapped four-day buying streak and turned sellers, they offloaded stocks worth Rs 85.29 crore. They snapped a 13-day buying streak on Feb. 9.

Foreign institutions have remained net sellers of Rs 42,873.05 crore of Indian stocks so far in 2023.

The yield on the 10-year bond closed 5 bps higher at 7.37% on Friday. It closed at 7.32% on Thursday.

Source: Bloomberg

The local currency weakened by 11 paise to 82.83 at close against the greenback on Friday. It closed 82.72 on Thursday.

Source: Bloomberg

Indian equity benchmarks declined through Friday to close lower in trade, snapping the winning streak from the last three sessions. Nifty slipped below 18,000 points on Friday.

Following a week of volatile swings led by Adani Group company stocks, the headline indices rose this week.

Dollar rallied, Asian and European stocks dropped, whereas the Wall Street equity futures slid with the expectations of steeper U.S. rate hikes, following the comments by two Federal Reserve officials.

Most of the dollar bonds issued by the conglomerate Adani Group exited distressed territory after it said it will address upcoming maturities of the debt. The move is seen as the group’s latest effort to boost investor sentiment after a rout sparked by the short-seller Hindenburg Group's report.

The S&P BSE Sensex closed down 317 points or 0.52% at 61,002.57 while the NSE Nifty 50 was 92 points or 0.51% lower at 17,944.20.

Larsen and Toubro Ltd., UltraTech Cement Ltd, BPCL Ltd., Hero MotoCorp Ltd., and Asian Paints Ltd. were the top gainers in the gauge.

Whereas, Adani Enterprises Ltd., Nestle India Ltd., IndusInd Bank Ltd., SBI Life Insurance Co., and HDFC Life Insurance Co. were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices declined and underperformed the larger peers; S&P BSE MidCap was down 0.75%, whereas S&P BSE SmallCap was lower by 0.24%.

Fifteen the 20 sectors compiled by BSE declined led by S&P BSE Realty, S&P BSE Bankex, S&P BSE Information Technology and S&P BSE Teck, while five sectors advanced in trade.

The market breadth was skewed in the favour of bears. About 1,509 stocks rose, 1,941 declined, and 140 remained unchanged on the BSE.

Followed by a positive budget week and a week of volatility led by the moves in Adani group stocks, the headline indices advanced in the third week of February.

This week, S&P BSE Sensex was up 0.53%, whereas NSE Nifty 50 was higher by 0.49% in trade.

Indices ended mixed in trade last week, with Sensex declining by 0.26% and Nifty closing 0.01% higher.

Sectorally, Nifty IT, Metal, and FMCG indices gained this week.

On the other hand, Nifty Media, PSU bank, Realty, Phatma, Midcap 100, Smallcap 100 and Banks declined over 1% this week.

• ADIA, TPG and Brookfield complete investment of Rs 1,580 crore ($200 million) for 9.09% stake in UPL Sustainable Agri Solutions Ltd.

• The funds will be utilised to meet the debt reduction target of $500 million by the end of March 2023.

Source: Exchange filing

• Companies will work together on technology development, co-creation, co-innovation, joint marketing and sales, in the fields of cyberwarfare and cyber defence systems.

• The deal was signed at Aero India 2023, the biennial air show and aviation exhibition being held at Yelahanka Air Force Station, Bengaluru.

Source: Exchange filing

Shares of banking companies declined in trade on Friday and the headline index NSE Nifty 50 was lower by 0.59% in trade.

The NSE Bank Index was down 1.44% in trade. All the 12 constituents compiled by the gauge declined.

Bandhan bank Ltd., IndusInd Bank Ltd., AU Small Finance Bank Ltd., Bank of Baroda, State Bank of India, Punjab National Bank declined over 1% in trade.

Source: NSE

• Minda Corp. has purchased a 15.7% stake in Pricol for Rs 400 crore.

• The company said this is an open-market transaction and no prior approvals have been obtained.

• Pricol had earlier stated that it is not in knowledge of any such deal.

• Minda said this is “merely” a financial investment, without acquiring any special rights in Pricol other than the rights as a shareholder.

Source: Exchange filing

Shares of pharmaceutical companies declined in trade on Friday and the headline index NSE Nifty 50 was lower by 0.35% in trade.

The NSE Pharma Index was up 0.90% in trade. Out of the 20 constituents compiled by the gauge, 14 declined, five advanced, while one was unchanged.

IPCA Laboratories Ltd., Biocon Ltd., Aurobindo Pharma Ltd., Laurus Labs Ltd., Lupin Ltd., Zydus Lifesciences Ltd., Torrent Pharma Ltd., and Cipla Ltd., declines over 1% in trade each.

Source: NSE

• Kartik Jain appointed as the managing director and chief executive officer for a period of three years, from Jan. 9, 2023.

• Prem Haroomal Samtani appointed as an Independent Director of the company.

Source: Exchange filing

Indian equity benchmarks declined through midday on Friday after ending higher in the last three sessions.

Asian markets declined alongside the U.S. equity futures with expectations of steeper U.S. rate hikes growing after comments by two Federal Reserve officials. The dollar rallied.

On Thursday, the S&P 500 Index lost 1.4% and the Nasdaq 100 sank 1.9%, while the yield on the benchmark 10-year Treasury surged to the highest level this year.

As of 12:03 p.m., the S&P BSE Sensex was down 144 points or 0.24% at 61,175.07 while the NSE Nifty 50 was 47 points or 0.26% lower at 17,988.85.

Larsen and Toubro Ltd., UltraTech Cement Ltd, ONGC Ltd., BPCL Ltd., and Hero MotoCorp Ltd. were the top gainers in the gauge.

Whereas, Nestle India Ltd., Adani Enterprises Ltd., IndusInd Bank Ltd., SBI Life Insurance Co., and HDFC Life Insurance Co. were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices traded mixed; S&P BSE MidCap was down 0.42%, whereas S&P BSE SmallCap was higher by 0.10%.

Twelve the 20 sectors compiled by BSE declined, while eight advanced in trade.

The market breadth was skewed in the favour of bears. About 1,545 stocks rose, 1,672 declined, and 178 remained unchanged on the BSE.

• Zydus Lifesciences has received final approval from the United States Food and Drug Administration for Sirolimus Tablets, 1 mg and 2 mg.

• It is an anti-rejection medicine for people 13 years of age and older who have received a kidney transplant.

• The drug will be manufactured at the group’s facility at Moraiya.

• Sirolimus Tablets had annual sales of $69 million in the U.S.

Source: Exchange Filing

Shares of Schaeffler India Ltd. rose 4.75% to Rs 2,964.45 apiece in trade on Friday as the third-quarter profit beat estimates.

Company's December quarter revenue was up 17.8% at Rs 1,794.65 crore compared with Rs 1,523.2 crore, in the same period a year back. It nearly met the consensus analyst estimates pooled by Bloomberg, which stood at Rs 1,777.3 crore.

It posted an 21.2% rise in consolidated net profit at Rs 230.98 crore for December quarter on the back of higher revenue, beating analyst estimates of Rs 195.8 crore. The profit stood at Rs 190.64 crore in the same quarter of the previous fiscal.

Also, company's board declared a dividend of Rs 24 per share.

Schaeffler India Q3 FY23 (YoY)

• Revenue up 17.8% at Rs 1,794.65 crore

• Ebitda up 20.2% at Rs 345.22 crore (Bloomberg estimate: Rs 378.1 crore)

• Ebitda margin at 19.2% vs 18.9%

• Net profit up 21.2% at Rs 230.98 crore (Bloomberg estimate: Rs 195.8 crore)

• The company announced a dividend of Rs 24 per share.

The stock rose as much as 5.02% intraday. The total traded volume stood at 36.7 times its 30-day average. The relative strength index was at 72.1.

Out of the seven analysts tracking the company, three maintain a 'buy' rating, two 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 4.4% over the next 12 months.

Source: Bloomberg, Exchange filing

Shares of Tanla Platforms Ltd. advanced 4.40% to Rs 681.55 apiece in trade on Friday.

The company on Feb. 15, announced in an exchange filing that they will be launching Wisely ATP, an anti-phishing technology platform, at the Mobile World Congress in Barcelona, Spain on Feb. 27, 2023.

Wisely ATP is a global, proprietary anti-phishing platform to protect citizens, trusted brands and digital economy.

Wisely ATP will be unveiled by Shri Vaghela, Chairman of TRAI at MWC in Barcelona.

The stock rose as much as 6.16% intraday, the most since Feb. 8, 2023. It has risen 3.96% in the last two sessions after the announcement.

Total traded volume stood at 10.3 times its 30-day average. The relative strength index was at 57.1.

The three analysts tracking the stock maintain a 'buy' rating onthe stock.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 38.1% over the next 12 months.

Source: Bloomberg, Exchange filing

• Company indicated that it's new injectable manufacturing facility in Nagpur has received the Establishment Inspection Report

• This indicates closure of inspection

• The facility was last inspected from Oct 17 to Oct 29 and had received five observations.

• "We are committed to bringing an important portfolio of injectables addressing unmet needs from the facility."- Nilesh Gupta, MD, Lupin

Source: Exchange filing

Shares of UltraTech Cement Ltd. advanced 2.13% to Rs 7,324.25 apiece in trade on Friday.

The company commissioned 1.30 mtpa brownfield cement capacity in Hirmi, Chhattisgarh and 2.80 mtpa greenfield grinding capacity in Cuttack, Odisha, taking its total cement manufacturing capacity in India to 126.95 mtpa.

The stock rose as much as 3.06% intraday, the most since Feb. 8, 2023.

Total traded volume stood at 5.5 times its 30-day average. The relative strength index was at 60.7.

Out of the 47 analysts tracking the stock, 42 maintain a 'buy' rating, two recommend a 'hold' and three suggest to 'sell' the stock.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 8.1% over the next 12 months.

Source: Bloomberg, Exchange filing

Shares of Glenmark Pharmaceuticals Ltd. advanced 1.13% to Rs 440 apiece in trade on Friday. The stock rose as much as 1.21% intraday.

The company received a 2nd tentative approval by the U.S. FDA for Saxagliptin Tablets, 2.5 mg and 5 mg.

These tablets are the generic version of Onglyza®1 Tablets, 2.5 mg and 5 mg, of AstraZeneca AB.

Glenmark’s first tentative approval letter for Saxagliptin Tablets, 2.5 mg and 5 mg was received on June 12, 2017.

According to IQVIATM sales data for the 12-month period ending December 2022, the Onglyza® Tablets, 2.5 mg and 5 mg market achieved annual sales of approximately $122.3 million.

Source: Bloomberg, Exchange filing

• Adani group company stocks opened higher in trade.

• Only, Adani Total Gas Ltd. declined in trade, while all the other group company stocks advanced.

Source: Bloomberg

Indian equity benchmarks declined in trade at open on Friday after ending higher in the last three sessions.

Stocks in Asia dropped alongside the U.S. equity futures after comments by two Federal Reserve officials that they were considering 50 basis-point interest rate hikes to battle persistently high inflation.

The S&P 500 Index lost 1.4% and the Nasdaq 100 sank 1.9%, while the yield on the benchmark 10-year Treasury surged to the highest level this year.

At pre-open, the S&P BSE Sensex opened down 318 points or 0.52% at 61,001.55 while the NSE Nifty 50 was 61 points or 0.34% lower at 17,974.85.

UltraTech Cement Ltd, Adani Ports and SEZ Ltd Ltd., Grasim Industries Ltd., BPCL Ltd., and Hero MotoCorp Ltd. were the top gainers in the gauge.

Whereas, Nestle India Ltd., Tech Mahindra Ltd., HCL Technologies Ltd., IndusInd Bank Ltd., and Wipro Ltd. were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices traded mixed; S&P BSE MidCap was down 0.21%, whereas S&P BSE SmallCap was higher by 0.09%.

Fourteen the 20 sectors compiled by BSE declined, while six advanced in trade.

The market breadth was skewed in the favour of bulls. About 1,323 stocks rose, 1,059 declined, and 140 remained unchanged on the BSE.

The S&P BSE Sensex opened down 318 points or 0.52% at 61,001.55 while the NSE Nifty 50 was 61 points or 0.34% lower at 17,974.85.

The local currency weakened by 9 paise to 82.81 at open against the greenback on Friday. It closed 82.72 on Thursday.

Source: Bloomberg

• Company will be developing a premium residential project on the acquired land.

• In May 2019, Godrej Properties had acquired R.K. Studios in Chembur to develop a premium mixed-use project, Godrej RKS.

Source: Exchange filing

• Pricol has denied reports claiming Minda Corporation's acquisition of a 15.7% stake in the company.

• Company says it has "strong” financial fundamentals and no intent of undertaking any secondary sale or raising equity capital.

Source: Exchange filing

• U.S. Dollar Index at 104.2

• U.S. 10-year bond yield at 3.89%

• Brent crude down 0.36% to $84.83 per barrel

• Nymex crude at $78.19 per barrel

• SGX Nifty down 0.45% to 17,987.5 as of 7:22 a.m.

• Bitcoin down 3.61% to $23,729.30

• InterGlobe Aviation: Shobha Gangwal sold 1.56 crore shares (4.04%) at Rs 1,885.72 apiece.

• Patel Engineering: Bank of Baroda sold 32.19 lakh shares (0.41%) at Rs 0.47 apiece.

• Macfos: The maiden share sale of the SME e-commerce company will open on Feb. 17 and continue till Feb. 21. The price band for the offering has been fixed at Rs 92-102 per share. It is an entirely offer for sale issue, with all the proceeds going to shareholders offloading their stake during the IPO.

Schaeffler India Q3 FY23 (YoY)

• Revenue up 17.8% at Rs 1794.65 crore

• Ebitda up 20.2% at Rs 345.22 crore (Bloomberg estimate: Rs 378.1 crore)

• Ebitda margin at 19.2% vs 18.9%

• Net profit up 21.2% at Rs 230.98 crore (Bloomberg estimate: Rs 195.8 crore)

• The company announced a dividend of Rs 24 per share.

Q3 Earnings Results Today

• Crisil

• Vedanta: The company was selected as the preferred bidder for receiving composite licence for Kelwardabri block in Chhattisgarh, which has reserves of nickel, chromium and associated platinum group elements.

• REC: Fitch Ratings has assigned ‘BBB-’ rating to proposed senior unsecured notes of the company, which will be issued from its existing $7 billion global medium-term note programme.

• RailTel Corporation of India: The company received a work order worth Rs 27.07 crore from Bangalore Metro Rail Corporation for supply, installation testing and commissioning of the IT network infrastructure, and a comprehensive annual maintenance contract of Rs 6.22 crore per year for 5 years, extendable to 10 years.

• Vodafone Idea/Bharti Airtel/Reliance Industries: Vodafone Idea lost 2.47 million subscribers in December last year, while Bharti Airtel and Reliance Jio Infocomm added 1.53 million and 1.7 million subscribers during the month, respectively, as per data released by telecom regulator TRAI.

• Angel One: Narayan Gangadhar resigned from the position of CEO of the company, effective close of business hours on May 16, 2023, due to personal reasons. The day-to-day affairs of the company will be under chairman and managing director Dinesh Thakkar for now.

• Engineers India: The company signed an memorandum of agreement with Oil India to carry out technological studies and feasibility reports for the upstream, midstream and the downstream value chain.

• UltraTech Cement: The company commissioned 1.30 mtpa brownfield cement capacity in Hirmi, Chhattisgarh and 2.80 mtpa greenfield grinding capacity in Cuttack, Odisha, taking its total cement manufacturing capacity in India to 126.95 mtpa.

• Satin Creditcare Network: The board approved raising Rs 99 crore terms and conditions for issuing secured, rated, unlisted, redeemable, non-convertible debentures of face value Rs 1 lakh each.

• Hindustan Aeronautics/Bharat Forge: Hindustan Aeronautics, Saarloha Advanced Materials and Bharat Forge signed an MOU for collaboration in development and production of aerospace grade steel alloys.

• Power Grid Corporation of India: POWERGRID Bhuj Transmission, a wholly owned subsidiary of the company, commissioned the transmission system for providing connectivity to renewable energy projects at Bhuj-II in Gujarat.

• NLC India: The company, through its joint venture company Neyveli Uttar Pradesh Power, is setting up a 1,980-MW coal-based thermal power project at Ghatampur in Kanpur district of Uttar Pradesh. It has also planned to setup another coal-based pit head thermal power project of 2,400 MW at Talabira, in Jharsuguda district of Odisha. Both projects have their entire power capacity tied up.

Asia markets declined, following a drop in the U.S. benchmarks after comments by two Federal Reserve officials that they were considering 50 basis-point interest rate hikes to battle persistently high inflation.

The S&P 500 Index lost 1.4% and the Nasdaq 100 sank 1.9%, while the yield on the benchmark 10-year Treasury surged to the highest level this year.

Meanwhile, the yield on 10-year Treasuries advanced to 3.89%. Crude prices were trading around $85-mark, while Bitcoin was trading below 24,000-level.

At 7:22 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was down 0.45% at 17,987.5.

India's benchmark stock indices ended firm for the third day in a row on Thursday, led by gains in I.T., metal and realty stocks.

Rupee snapped its three-day decline against the U.S. dollar on account of a broadly weaker greenback and stronger domestic equities.

Overseas investors in Indian equities remained net buyers for the fifth day in a row on Thursday. Foreign portfolio investors mopped up equities worth Rs 1,570.62 crore, while the domestic institutional investors remained net buyers for the fourth day in a row and bought stocks worth Rs 1,577.27 crore. They previously snapped a 13-day buying streak on Feb. 9.