Stock Market Today: Sensex, Nifty End Volatile Session Higher; FPIs Remain Sellers

Overseas investors in Indian equities remained net sellers for the sixth day in a row on Thursday.

Foreign portfolio investors offloaded equities worth Rs 144.73 crore, according to data from the National Stock Exchange.

On the other hand, domestic institutional investors sold stocks worth Rs 205.25 crore snapping the 13 days buying streak.

Foreign institutions net bought Rs 14,398.8 crore worth of Indian equities in December, but have remained net sellers of Rs 48,336.92 crore worth of Indian stocks so far in 2023.

The local currency weakens by 3 paise against the greenback on Thursday to 82.52 at close. It closed 82.49 on Wednesday.

Source: Bloomberg

The yield on the 10-year bond closed flat at 7.34% on Thursday.

Source: Bloomberg

The Indian benchmark indices eked gains at close as I.T. stocks staged a recovery in the second half of the session.

In the first half, the headline indices traded flat through volatility as Adani group stocks resumed rout on MSCI review after investors raised concerns. Shares of Adani group comapnies declined, with the exception of Adani Wilmar Ltd. shares that advanced in trade.

Asian markets were mixed as Chinese and Hong Kong stocks advanved. Hawkish comments from Federal Reserve officials prompted investors to rethink expectations about the U.S. peak rates. U.S. futures gained as investors digested a slew of earnings reports and awaited data on the jobless claims.

The S&P BSE Sensex closed up 143 points or 0.23% at 60,806.22 while the NSE Nifty 50 was 22 points or 0.12% higher at 17,893.45.

Bajaj Finserv Ltd., HDFC Life Insurance Co., Hindalco Industries Ltd., Asian Paints Ltd., and IndusInd Bank Ltd. were the top gainers in the gauge.

Whereas, Adani Enterprises Ltd., Adani Ports and SEZ Ltd., Hero MotoCorp Ltd., Cipla Ltd., and JSW Steel Ltd. were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices traded flat; S&P BSE MidCap was down 0.01%, whereas S&P BSE SmallCap was higher by 0.15%.

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

The market breadth was spilt in the middle between the sellers and buyers. About 1,611 rose, 1,686 declined and 149 remained unchanged on the BSE.

• NCLT has approved the merger of Adani Power Maharashtra, Adani Power Rajasthan, Udupi Power Corporation, Raipur Energen, Raigarh Energy Generation and Adani Power (Mundra) with Adani Power.

Source: Exchange filing

• Revenue rose 70% to Rs 918 crore Vs Rs 540 crore [BBG Estimate: Rs 850.3 crore]

• Net Profit rose 22% to Rs 255.5 crore vs Rs 209 crore [BBG Estimate: Rs 237 crore]

• EBITDA rose 17% to Rs 326 crore Vs Rs 279 crore [BBG Estimate: Rs 317 crore]

• EBITDA margin stood at 35.5% Vs 51.7% [BBG Estimate: 37.3%]

Source: Exchange filing

• Revenue up 6% YoY at Rs 53,151 crore vs Rs 50,272 crore. [Bloomberg Estimate: Rs 52,492.47 crore]

• Net Profit down 63% YoY at Rs 1,362 crore vs Rs 3,675 crore. [Bloomberg Estimate: Rs 1,841 crore]

• Ebitda down 48% YoY at Rs 3,930 crore vs Rs 7,624 crore. [Bloomberg Estimate: Rs 4,973 crore]

• Ebitda margin at 7.39% vs 15.16%. [Bloomberg Estimate: Rs 9.5% crore]

Source: Exchange filing

• Revenue down 12% at Rs 493 crore Vs Rs 561 crore (BBG estimate : Rs 479 crore)

• Net profit down 23% to Rs 62 crore Vs Rs 80 crore (BBG estimate : Rs 76 crore Profit)

• EBITDA up 4% to Rs 106 crore from Rs 102 crore (BBG estimate : Rs 100 crore Profit)

• Margins at 21.5% Vs 18.2% (BBG estimate : 20.9%)

Source: Exchange filing

Shares of information technology companies advanced in trade on Thursday and the headline index NSE Nifty 50 was higher by 0.21% in trade.

The NSE IT Index was up 0.66% in trade. Nine of the total 10 constituents compiled by the gauge advanced.

Larsen and Toubro Technology Services Ltd., Infosys Ltd., TCS Ltd., Mphasis Ltd., HCL Technologies Ltd., Tech Mahindra Ltd., Persistent Systems Ltd. Ltd., Coforge Ltd., and Wipro Ltd. in trade.

Source: NSE

Shares of MRF Ltd. declined 3.42% in trade on Thursday after it reported net income for the third quarter that missed the average analyst estimate.

• Net income up 16% YoY at Rs 169 crore. [Bloomberg estimate: Rs 208 crore]

• Revenue up 14% YoY to Rs 5,530 crore. [Bloomberg estimate: Rs 5,859 crore]

• Total costs up 14% YoY to Rs 5,380 crore.

• Other income up 1.4% YoY at Rs 699.8 crore.

• Dividend at Rs 3 per share.

Source: Bloomberg

• Adani Wilmar said GST officials visited its depot warehouse at Parwanoo, Himachal Pradesh on February 8 for a routine inspection and not a raid.

• Officials did not find any irregularities in the operations and dealings.

• It added that under Rule 86B of the GST law, the company is not required to pay tax liability in cash.

Source: Press release

The Indian benchmark indices were little changed after opening largely flat in trade on Thursday after Adani group stocks resumed rout on MSCI review as investors raised concerns.

Asian markets edged lower as hawkish comments from Federal Reserve officials prompted investors to rethink expectations about the U.S. peak rates. On Wednesday, the S&P 500 declined 1.1% and the tech-heavy Nasdaq 100 fell 1.8%.

Shares of Adani group companies declined as MSCI is set to release its review on the free float status of group securities after market participants raised concerns. Only Adani Wilmar Ltd. was advancing in trade.

As of 12:10 p.m., S&P BSE Sensex was down 44 points or 0.07% at 60,619.51 while the NSE Nifty 50 was 31 points or 0.17% lower at 17,840.85.

Bajaj Finserv Ltd., HDFC Life Insurance Co., Bajaj Finance Ltd., SBI Life Insurance Co., and Asian Paints Ltd. were the top gainers in the gauge.

Whereas, Adani Enterprises Ltd., Adani Ports and SEZ Ltd., Hero MotoCorp Ltd., Bharti Airtel Ltd., and Tata Motors Ltd. were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices mirrored the larger peers; S&P BSE MidCap was down 0.03%, whereas S&P BSE SmallCap was higher by 0.1%.

Fifteen out of the 20 sectors compiled by BSE declined, while the only five advanced in trade.

The market breadth was tied between the bears and bulls. About 1,611 rose, 1,686 declined and 149 remained unchanged on the BSE.

• Globus Spirits Ltd. has informed in an exchange filing that the Income Tax Department had conducted a search and seizure operation at the company's head office at New Delhi, from Jan. 30 to Feb. 3 under Section 132 of the Income Tax Act, 1961.

• Company said that it has extended full cooperation to the authorities and there was no disruptions in the business and operations were unaffected.

Source: Exchange filing

• Industry posts total net inflow of Rs 11,373.21 crore versus an inflow of Rs 4,491.5 crore in December.

• Equity mutual funds see inflow of Rs 12,546.5 crore in January vs inflow of Rs 7,303.4 cr in December.

• Debt mutual funds see outflow of Rs 10,316.15 crore in January vs outflow of Rs 21,946.7 crore in December.

• Hybrid mutual funds see inflow of Rs 4,491.97 crore in January vs inflow of Rs 2,255.2 crore in December.

• Average AUM: Rs 40.80 lakh crore vs Rs 40.76 lakh crore in December.

• Net AUM: Rs 39.62 lakh crore vs Rs 39.88 lakh crore in December.

• SIP contribution grows to Rs 13,856.18 crore in January vs Rs 13,573.08 crore in December.

• Number of SIP accounts reach 6.21 crore compared to 6.12 crore in December.

Source: AMFI

The brokerage downgraded the rating to 'neutral' from 'buy' and cut the target price to Rs 635 from Rs 838. This implies a potential upside of 1.6%.

Concor shares were trading 0.20% higher compared to a flat Nifty 50 as of 11:23 a.m. The relative strength index stood at 28, indicating that the stock may be oversold.

Of the 30 analysts tracking the stock, 16 maintained 'buy', nine suggested 'hold', while five analysts recommended 'sell'. The return potential of the stock is 21.3%, according to Bloomberg data.

Source: Bloomberg, Brokerage note

• Adani group stocks declined in trade on Thursday as MSCI reviews the free float on investor concerns.

• Adani Enterprises Ltd. slumped as much as 20% intraday after rising in the beginning of the week.

• Only, Adani Wilmar Ltd. was a respite among the group stocks as it advanced.

Source: Bloomberg

• Shares of Adani Wilmar Ltd. were the only respite in trade amongst all the Adani group company stocks that declined.

• Adani Wilmar was locked in a 5% upper circuit at Rs 439.7 a piece.

Source: Bloomberg

Shares of Cummins India Ltd. climbed 8.55% as of 10:00 am, to Rs 124.45 apiece in trade on Thursday after the third-quarter net profit exceeded analyst expectations and board declared interim dividend of Rs 12 per share. The NSE Nifty 50 index was trailing by 0.07%.

Cummins's net profit rose 65.85% at Rs 413.8 crore as compared to the same quarter of the previous financial year. The consensus analyst estimates pooled by Bloomberg pegged the net profit at Rs 269.7 crore for the given period.

Similarly, Company's revenue was 25.31% higher annually at Rs 2,185.04 crore in the said quarter of the ongoing fiscal, above the Bloomberg estimate of Rs 2,038.65 crore.

In an exchange filing released by the company on exchanges it noted the impact of the recent budget on the future outlook of Cummins India Ltd.'s business.

"India has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market," the release stated.

Cummins India Q3 FY23 (Consolidated, YoY)

• Revenues up 25.31% at Rs 2,185.04 crore. [Bloomberg estimate: Rs 2,038.65 crore]

• Ebitda up 51.57% at Rs 413.10 crore [Bloomberg estimate: Rs 311.1 crore]

• Ebitda margin at 18.91% vs. 15.63%

• Net profit up 65.85% at Rs 413.8 crore [Bloomberg estimate: Rs 269.7 crore]

• The board approved an interim dividend of Rs 12 per share.

The stock rose as much as 9.75% intraday, rising the most in over 52 weeks to Rs 1,618 apiece.

Total traded volume stood at 25 times its 30-day average. The relative strength index at 75 implies that the stock maybe overbought.

Out of the 31 analysts tracking the company, 19 maintain a 'buy' rating, six recommend a 'hold' and six suggest to 'sell' the stock.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 10% over the next 12 months.

Source: Bloomberg, Exchange filing

Shares of Adani Enterprises Ltd. were locked in a 15% lower circuit in early trade on Thursday at Rs 1,839.65 apiece.

It rose as much as 23% intraday in trade on Wednesday.

Source: Bloomberg

Shares of Adani group companies declined as MSCI is set to release its review on the free float status of group securities after market participants raised concerns.

Only Adani Wilmar Ltd. advanced in trade, whereas all the other group company stocks declined.

Source: Bloomberg

The Indian benchmark indices traded largely flat after opening marginally higher in pre-open on Thursday.

Asian markets edged lower as hawkish comments from Federal Reserve officials prompted investors to rethink expectations about the U.S. peak rates.

On Wednesday, the S&P 500 declined 1.1% and the tech-heavy Nasdaq 100 fell 1.8%.

Shares of Adani group companies declined as MSCI is set to release its review on the free float status of group securities after market participants raised concerns.

The S&P BSE Sensex opened up 52 points or 0.09% at 60,715.89 while the NSE Nifty 50 was 14 points or 0.08% higher at 17,885.50.

The local currency weakens by 11 paise against the greenback on Thursday to 82.60 at open. It closed 82.49 on Wednesday.

Source: Bloomberg

The yield on the 10-year bond opened flat at 7.34% on Thursday.

Source: Bloomberg

• Angel One has received an in-principle nod from SEBI for sponsoring a mutual fund.

• The company will be setting up an asset management company and a trustee company.

Source: Exchange filing

• MSCI has determined that certain investors should no longer be designated as free float, which triggered a review of the Adani Group securities.

• MSCI defines the free float of security as the proportion of shares outstanding for purchase by international investors.

• February Index Review of MSCI will suspend any potential changes to the number of shares for the affected securities.

• All the affected securities will also be reviewed under 'Full Country Float Review' during the May 2023 Index Review.

Source: MSCI Statement

• U.S. Dollar Index at 103.45

• U.S. 10-year bond yield at 3.61%

• Brent crude is up 0.05% to $85.13 per barrel.

• Nymex crude at $78.55 per barrel

• SGX Nifty is down 0.01% to 17,887.5 as of 7:22 a.m.

• Bitcoin up 0.01% to $22,961.39

• Jindal Steel & Power: Promoter group Siddeshwari Tradex revoked a pledge of 11.20 lakh shares and Opelina Sustainable Service revoked a pledge of 5,556 shares on Feb. 7.

• Ex-Date Interim Dividend: Gillette India, Greenpanel Industries, Orient Electric, REC

• Record Date Interim Dividend: Gillette India, Greenpanel Industries, Orient Electric, REC

• Move Out Of Short-Term ASM Framework: Adani Green, Adani Total Gas, Lloyds Steels Industries, Schneider Electric Infrastructure, Rama Steel Tubes

Life Insurance Corporation of India, Hindustan Petroleum Corporation, Hindalco Industries, General Insurance Corporation of India, Aurobindo Pharma, MRF, Hindustan Aeronautics, Lupin, Kalpataru Power Transmission, Voltas, Zomato, United Breweries, Page Industries, Finolex Cables, Brigade Enterprises, IRCTC, Devyani International, GE T&D India, Fine Organic Industries, RITES, Pfizer, Greaves Cotton, Sapphire Foods, Krishna Institute of Medical Sciences, Lux Industries, Sudarshan Chemical Industries, Lumax Industries, Natco Pharma, HealthCare Global Enterprises, Alkyl Amines Chemicals, Rainbow Children's Medicare, Navneet Education, Matrimony.com, Bajaj Consumer Care, Ujjivan Financial Services, Indian Overseas Bank, NESCO, Suzlon Energy, Alembic, Bombay Dyeing & Manufacturing Company, Cholamandalam Financial Holdings, Jtekt India, Sula Vineyards, Agarwal Industrial Corporation, Akzo Nobel India, Aptech, Adani Total Gas, DCW, DISA India, EIH Associated Hotels, FDC, Force Motors, Garware Technical Fibres, Gokul Agro Resources, HMT, KNR Construction, MTAR Technologies, Nirlon, Orchid Pharma, Panama Petrochem, Paras Defence and Space Technologies, Sandur Manganese & Iron Ores, SEAMEC, SEPC, SJS Enterprises, Suryoday Small Finance Bank, TGV SRAAC, TVS Srichakra, Veranda Learning Solutions, and WPIL.

Piramal Enterprises Q3 FY23 (Consolidated)

• NII is up 113.31% at Rs 2,272.31 crore (YoY).

• Net profit up 299.27% at Rs 3,545.37 crore (Bloomberg estimate: Rs 459.65 crore) (YoY)

• GNPA at 4% vs. 3.7% (QoQ)

• NNPA at 1.7% vs. 1.3% (QoQ)

Uno Minda Q3 FY23 (Consolidated, YoY)

• Revenue is up 33.65% at Rs 2,915.49 crore.

• Ebitda up 43.8% at Rs 338.40 crore

• Ebitda margin at 11.61% vs. 10.79%

• Net profit of Rs 41.67 crore vs. net loss of Rs 1.58 crore

• The board approved dividend of Rs 0.50 per share.

Adani Power Q3 FY23 (Consolidated, YoY)

• Revenue is up 44.83% at Rs 7,764.41 crore.

• Ebitda is down 17% at Rs 1,469.73 crore.

• Ebitda margin at 18.93% vs 33.03%

• Net profit was down 96% at Rs 8.77 crore.

Godrej Agrovet Q3 FY23 (Consolidated, YoY)

• Revenue is up 11.79% at Rs 2,323.5 crore (Bloomberg estimate: Rs 2,381.66 crore).

• Ebitda was up 0.07% at Rs 136.29 crore (Bloomberg estimate: Rs 165.66 crore).

• Ebitda margin at 5.87% vs. 6.55% (Bloomberg estimate: 7%).

• Net profit was up 78.94% at Rs 116.42 crore (Bloomberg estimate: Rs 87.78 crore).

JB Chemicals & Pharmaceuticals Q3 FY23 (Consolidated, YoY)

• Revenue is up 37% at Rs 729 crore (Bloomberg estimate: Rs 765 crore).

• Ebitda up 48% to Rs 169 crore (Bloomberg estimate: Rs 170 crore)

• Ebitda margin at 23.3% vs. 21.4% (Bloomberg estimate: 22.2%).

• Net profit was up 36% to Rs 101 crore (Bloomberg estimate: Rs 103 crore).

• The board approved an interim dividend of Rs 8.50 per share.

Cummins India Q3 FY23 (Consolidated, YoY)

• Revenues are up 25.31% at Rs 2,185.04 crore.

• Ebitda up 51.57% at Rs 413.10 crore

• Ebitda margin at 18.91% vs. 15.63%

• Net profit up 65.85% at Rs 413.8 crore

• The board approved an interim dividend of Rs 12 per share.

• Vedanta: As per S&P Global Ratings, the next few weeks will be crucial for Vedanta Resources Ltd. The company is highly likely to meet its obligations until September 2023. However, sustaining liquidity beyond that would depend on the completion of at least one of two key ongoing transactions: a targeted US$2 billion fund-raising exercise and a proposed sale of international zinc assets by Vedanta Ltd. (Vedanta Resources has a 70% stake) to Hindustan Zinc Ltd. (Vedanta Ltd. has a 65% stake).

• Larsen & Toubro: The company received an order worth Rs 2,585 crore from the Ministry of Defense for the supply of 41 sets of modular bridges for the Corps of Engineers of the Indian Army.

• Navin Fluorine: The company’s subsidiary Navin Fluorine Advanced Sciences commenced commercial production at the multi-purpose plant and plant for manufacture of a key agro-chemical intermediate in Dahej, Gujarat.

• RBL Bank: The bank received the RBI’s approval for the re-appointment of Rajeev Ahuja as executive director of the bank for a period of three years with effect from Feb. 21, 2023.

• Reliance Industries: Jio-bp, a fuels and mobility joint venture between RIL and BP, announced the initial rollout of E20 petrol.

• Indian Bank: The bank increased its repo benchmark rate, effective Feb. 9, to 6.5%.

Asian markets headed for declines on Thursday as fresh insights from Federal Reserve officials prompted investors to rethink the broadly bullish response to central bank commentary over the past week.

The S&P 500 declined 1.1%, and the tech-heavy Nasdaq 100 fell 1.8%. The knock to risk sentiment hinged on comments from four Fed officials who spoke at separate events on Wednesday and reinforced a shared message: the fight against inflation is not yet won.

At 7:22 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was down 0.01% at 17,887.5.

Meanwhile, the yield on 10-year U.S. Treasury notes was at 3.61%. Crude price was trading around $85-mark, while Bitcoin traded around $22,000-level.

The Indian benchmark indices continued trading higher through midday after opening with slim gains on Wednesday.

The rupee strengthened against the U.S. dollar as the Monetary Policy Committee hiked the policy rate by another 25 basis points.

Overseas investors in Indian equities remained net sellers for the fifth day in a row on Wednesday. Foreign portfolio investors offloaded equities worth Rs 736.82 crore, while domestic institutional investors mopped up stocks worth Rs 941.16 crore for the 13th day in a row.