Stock Market Today: Sensex, Nifty End Flat; FPIs Remain Net Sellers
The Sensex closed up 37 points higher or 0.06% at 60,978.75 while the Nifty was unchanged, 0.25 point lower at 18,118.30.
KEY HIGHLIGHTS
FPIs Remain Net Sellers
Overseas investors in Indian equities remained net sellers for the third straight day on Tuesday.
Foreign portfolio investors offloaded equities worth Rs 760.51 crore, according to data from the National Stock Exchange.
On the other hand, domestic institutional investors mopped up stocks worth Rs 1,144.75 for the third day, according to NSE data.
Foreign institutions net bought Rs 14,398.8 crore worth of Indian equities in December, but have remained net sellers of Rs 20,860.49 crore of Indian stocks so far in 2023.
Yield On The 10-Year Largely Flat
The yield on the 10-year bond closed largely flat at 7.35% on Tuesday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 33 paise to 81.72 at close on Tuesday. It closed at 81.39 on Monday.
Source: Bloomberg
Closing Bell
The Indian benchmark indices ended largely flat on Tuesday. European equities wavered in the wake of tech-stock fueled gains on the Wall Street and bets for less-aggressive interest rate hikes from the Federal Reserve.
Japanese equities ended on positive note, other major Asian markets were closed for lunar new year celebrations.
The S&P BSE Sensex closed up 37 points higher or 0.06% at 60,978.75 while the NSE Nifty 50 was unchanged, 0.25 point lower at 18,118.30.
Tata Motors Ltd., Maruti Suzuki India Ltd., Bajaj Auto Ltd., HCL Technologies Ltd. and HDFC Bank Ltd. were the top gainers in the gauge.
Whereas, Axis Bank Ltd., Hindalco Industries Ltd., Dr. Reddy's Laboratories Ltd., Power Grid Corp of India Ltd. and SBI Life Inusrance Co. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were marginally lower; S&P BSE MidCap was down 0.30%, whereas S&P BSE SmallCap was lower by 0.43%.
Thirteen out of the 19 sectors compiled by BSE declined, while six advanced in trade.
The market breadth was skewed in favour of the bears. About 1,528 rose, 1,978 declined, 144 remained unchanged on the BSE.
SBI Card Q3 Earnings (QoQ)
Revenue from operations up 6.37% at Rs 3,507.12 crore
Profit after tax down 3% to Rs 509.46 crore
Ebitda up 8.9% to Rs 1,040.61 core
Ebitda margin at 29.67% vs 28.98%
Source: Exchange filing
Sterlite Technologies Board To Consider Fundraise
Shares of Sterlite Technologies Ltd. fell 3.88% to Rs 181.05 apiece in trade on Tuesday after the board of directors announced that they will consider the proposal of fundraising through rights issue on January 27.
The stock fell as much as 4.30% intraday, the most in over four weeks since Dec 23. Total traded volume stood at 0.7 times its 30-day average.
The three analysts tracking the company, maintain a 'buy' rating on the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an downside of 13.9% over the next 12 months.
Source: Bloomberg, Exchange filing
Colgate Palmolive India Q3 Earnings (QoQ)
Revenue from operations down 7% at Rs 1,281.21 crore
Profit after tax down 12.5% to Rs 243.24 crore
Ebitda down 11.9% to Rs 35,139 core
Ebitda margin at 27.43% vs 28.94%
Source: Exchange filing
Granules India Q3 Earnings (QoQ)
Revenue from operations up 0.4% at Rs 1,146 crore
Profit after tax up 14% to Rs 124 crore
Ebitda up 4.8% to Rs 231 core
Ebitda margin at 20% vs 21%
Source: Exchange filing
European Markets Open Mixed
UCO Bank Q3 Earnings
Net interest income up 10.74% YoY at Rs 1,951.85 crore
Net profit up 110.37% YoY at Rs 652.97 crore
Gross NPA 5.63% vs 6.58% QoQ
Net NPA 1.66% vs 1.99% QoQ
Source: Exchange filing
BPCL To Expand Renewables Portfolio
BPCL to expand renewables portfolio to 1 GW by 2025.
BPCL to set up 1 GW renewable energy plant in Rajasthan.
Source: Bloomberg
EaseMyTrip Acquires Majority Stake In Hotel Booking Marketplace cheQin
EaseMyTrip acquires 55% in Glegoo Innovations, which runs cheQin, a real-time marketplace that connects hoteliers and travellers.
Company said the acquisition strengthens its non-air, hotel booking channel.
Source: Exchange filing
Maruti Suzuki Q3 FY23 Highlights (QoQ)
Revenue fell 3% to Rs 29,057.5 crore Vs Rs 29,942.5 crore [BBG Estimate: Rs 27,638 crore]
Net Profit rose 13% to Rs 2,391.5 crore vs Rs 2,112.5 crore [BBG Estimate: Rs 1,851 crore]
EBITDA rose 2% to Rs 2,837 crore Vs Rs 2770.9 crore [BBG Estimate: Rs 2,609 crore]
EBITDA margin stood at 9.8% Vs 9.3% [BBG Estimate: 9.4%]
Source: Exchange filing
Midday Market Update
The Indian benchmark indices were trading marginally higher in trade through midday on Tuesday.
Japanese equities ended on positive note, following the gains on Wall Street amid the strength in technology stocks and bets for less-aggressive rate hikes from the Federal Reserve. Other major Asian markets were closed for lunar new year celebrations.
As of 12:16 pm, the S&P BSE Sensex was up 76 points or 0.12% at 61,071 while the NSE Nifty 50 was 12 points or 0.07% higher at 18,130.45.
Tata Motors Ltd., HCL Technologies Ltd., HDFC Bank Ltd., Asian Paints Ltd. and Infosys Ltd. were the top gainers in the gauge.
Whereas, Axis Bank Ltd., Hindalco Industries Ltd., Power Grid Corp of India Ltd., Bharti Airtel Ltd. and Tata Steel Ltd. and were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were marginally lower; S&P BSE MidCap was down 0.29%, whereas S&P BSE SmallCap was lower by 0.19%.
Fourteen out of the 20 sectors compiled by BSE declined, while six advanced in trade.
The market breadth was skewed in favour of the bears. About 1,565 rose, 1,796 declined, 171remained unchanged on the BSE.
JSW Steel Unit Acquires 31% Stake In Ayena Innovation For Rs 5.99-Crore
JSW Steel Coated Products enters share subscription agreement with Ayena Innovation
Company aims to explore new avenues to increase consumption of coated steel products, diversify the customer portfolio mix and enhance its presence in the retail business.
Ayena Innovation develops, manufactures, and sells quick-to-install modular solutions including modular kitchens.
Source: Exchange filing
Stocks In Focus | Tata Communication, J&K Bank, Poonawalla Fincorp And More | BQ Prime
Rupee Weakens Against The U.S. Dollar
Nykaa Gains After 37.4 Lakh Shares Change Hands In A Bunch Deal
Shares of FSN E-Commerce Ventures Ltd. rose 3.09% to Rs 128.6 apiece in trade on Tuesday after 37.4 lakh shares changed hands in a bunched trade.
The stock gained as much as 3.17% intraday. Total traded volume stood at three times its 30-day average.
Out of the 20 analysts tracking the company, 15 maintain a 'buy' rating, three recommend a 'hold' and two suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an downside of 136.6% over the next 12 months.
Source: Bloomberg, Exchange filing
Torrent Pharma Gets 'OAI' Classification From U.S. FDA For Gujarat Facility
Torrent Pharmaceuticals said USFDA determined the inspection classification as Official Action Indicated.
This inspection classification will not impact existing supplies or revenues from this facility.
The U.S. drug regulator had inspected the facility last year and issued Form 483 with three observations.
Source: Exchange filing
Godrej Appliances Partners With Delhivery For Pan-India End-To-End Supply Chain Of Air Coolers
Godrej Appliances has awarded the contract to build and manage the pan-India supply chain for their air-cooler business to Delhivery Ltd..
Delhivery will deploy its integrated warehousing and distribution solution to drive market penetration of Godrej air coolers.
Delhivery and Godrej Appliances have jointly inaugurated a new warehouse in Ghaziabad to handle all fulfillment needs at a pan-India level.
Source: Exchange filing
Westlife Foodworld Appoints Saurabh Bhudolia As CFO
Westlife Foodworld Ltd.,owner and operator of McDonald’s restaurants in West and South India, has announced the appointment of Saurabh Bhudolia as its chief financial officer.
Saurabh will report to Akshay Jatia, executive director, and will work closely with the leadership team to devise effective financial strategies for Westlife Foodworld.
Prior to joining Westlife Foodworld, Saurabh held CFO positions at Lux Industries and Future Group India. He has also worked with organizations such as Tata Steel, Mondelez International, and Sula Vineyards in his professional journey of over 15 years.
Source: Exchange filling
Tata Communications Plunges 4% As Q3 Net Profit Declines
Shares of Tata Communications Ltd. fall 4.12% as of 10:25 am, to Rs 1,323.45 apiece in trade on Tuesday after its profit declined sequentially. However, company's revenue beat analyst estimates.
Net profit was down 26% quarter-on-quarter to Rs 393.8 crore, the company said in its exchange filing.
Company's revenue was up 2.2% at Rs 4,528.3 crore from the previous quarter of the ongoing financial year. As per the analyst estimates pooled by Bloomberg, revenue was pegged at Rs 4,489.7 crore.
Tata Communications Q3 FY23 (Consolidated, QoQ)
Revenues up 2.2% at Rs 4,528.3 crore.
Ebitda down 4.63% at Rs 1,077.3 crore.
Ebitda margin at 23.79% vs 25.5%
Net profit down 26% at Rs 393.8 crore
The stock fell as much as 4.46% intraday, the most in over four weeks since Dec. 23, 2022.
Total traded volume stood at 2.5 times its 30-day average.
Out of the eight analysts tracking the company, four maintain a 'buy' rating, three recommend a 'hold' and one suggests to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 3.6% over the next 12 months.
Source: Bloomberg, Exchange filing
Zensar Technology Climbs 6% As Q3 Profit Grows Sequentially
Shares of Zensar Technologies Ltd. rose 6.14% as of 10:07 am, to Rs 235 apiece in trade on Tuesday after its quarterly profit and earnings before interest, taxes, depreciation and amortisation rose in the third-quarter of the ongoing fiscal.
Net profit rose 34.68% quarter-on-quarter to Rs 76.5 crore, the company said in its exchange filing. Company's revenue at Rs 1,197.6 crore was 3% down from the previous quarter of the ongoing financial year.
Furthermore, the board of directors of the company announced the appointment of Manish Tandon as MD and CEO for five years, effective Jan. 23. Anant Vardhan Goenka relinquished the post of interim MD, and has been appointed as non-executive vice chairman.
Zensar Technologies Q3 FY23 (Consolidated, QoQ)
Revenues down 3% at Rs 1,197.6 crore
Ebitda up 51.6% at Rs 85.2 crore
Ebitda margin at 7.11% vs 4.55%
Net profit up 34.68% at Rs 76.5 crore
The board appointed Manish Tandon as MD and CEO for five years, effective Jan. 23.
The stock gained as much as 6.48% intraday, the most in over twelve weeks since Oct. 28, 2022.
Total traded volume stood at 23.5 times its 30-day average.
Out of the 15 analysts tracking the company, 11 maintain a 'buy' rating, three recommend a 'hold' and one suggests to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 17.7% over the next 12 months.
Source: Bloomberg, Exchange filing
Poonawalla Fincorp Shares Gain As Q3 Net Profit Rises, Asset Quality Improves
Shares of Poonawalla Fincorp Ltd. rose 4.14% as of 09:44 am, to Rs 302.85 apiece in trade on Tuesday after its quarterly profit rose 87.53% YoY in the third-quarter of the ongoing fiscal.
Net profit rose 87.53% year-on-year to Rs 150.4 crore, the private lender said in its exchange filing. As per the Bloomberg data, company's net income at Rs 1,821.10 beat analysts' consensus estimates.
The lender's asset quality sequentially improved in the third-quarter of the current fiscal.
Poonawalla Fincorp Q3 FY23
Net profit up 87.53% at Rs 150.4 crore (YoY)
NII up 33.2% Rs 360 crore (YoY)
Gross NPA at 1.69% vs 4.05% (QoQ)
Net NPA at 0.89% vs 1.97% (QoQ)
The stock gained as much as 5.54% intraday, the most in four weeks since Dec. 26, 2022.
Total traded volume stood at 5.4 times its 30-day average.
Out of the 11 analysts tracking the company, eight maintain a 'buy' rating, two recommend a 'hold' and one suggests to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 26.8% over the next 12 months.
Source: Bloomberg, Exchange filing
Opening Bell
The Indian benchmark indices extended it's rally from Monday and opened higher on Tuesday in trade.
Asian equities opened on a positive note, following the gains on Wall Street amid the strength in technology stocks and bets for less-aggressive rate hikes from the Federal Reserve.
The S&P BSE Sensex opened up 181 points or 30% at 61,122.30 while the NSE Nifty 50 was 65 points or 0.36% higher at 18,183.95.
Tata Motors Ltd., ICICI Bank Ltd., Infosys Ltd., Tech Mahindra Ltd. and IndusInd Bank Ltd. were the top gainers in the gauge.
Whereas, Bharti Airtel Ltd., Axis Bank Ltd., Apollo Hospitals Enterprise Ltd., Power Grid Corp of India Ltd. and Coal India Ltd. and were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were marginally higher; S&P BSE MidCap was up 0.07%, whereas S&P BSE SmallCap was higher by 0.23%.
Sixteen out of the 20 sectors compiled by BSE advanced, while four declined in trade.
The market breadth was skewed in favour of the bulls. About 1,573 rose, 731 declined, 106 remained unchanged on the BSE.
Sunteck Realty Q3 Business Update
Pre-sales up 12% YoY to Rs 3,960 crore
Collections rise 13% YoY to Rs 3,040 crore
Source: Exchange filing
Yield On The 10-Year Largely Flat
The yield on the 10-year bond opened 1 basis point higher at 7.36% on Tuesday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 13 paise to 81.52 at open on Tuesday. It closed at 81.39 on Monday.
Source: Bloomberg
I.T. Stocks May Continue To See Uptick | Trade Setup For Tuesday
Global Cues
U.S. Dollar Index at 101.90
U.S. 10-year bond yield at 3.52%
Brent crude up 0.15% to $88.32 per barrel
Nymex crude at $81.81 per barrel
SGX Nifty up 0.52% to 18,240 as of 8:10 a.m.
Bitcoin up 0.53% to $23,119.54
Pledge Share Details
Max Financials: Promoter Max Ventures Investment Holdings revoked a pledge of 20.54 lakh shares on Jan. 9.
Q3 Earning Results Today
Maruti Suzuki India, Indus Towers, TVS Motor Company, SBI Cards and Payment Services, Pidilite Industries, United Spirits, Macrotech Developers, Supreme Industries, Sonata Software, CG Power and Industrial Solutions, Colgate Palmolive (India), Triveni Engineering & Industries, Granules India, Sharda Cropchem, Strides Pharma Science, Vaibhav Global, Laxmi Organic Industries, Sona BLW Precision Forgings, PNB Housing Finance, HDFC Asset Management Company, Gateway Distriparks, Nazara Technologies, Chalet Hotels, Apollo Pipes, Kaveri Seed Company, Tatva Chintan Pharma Chem, CarTrade Tech, Motilal Oswal Financial Services, Powergrid Infrastructure Investment Trust, South Indian Bank, UCO Bank, Elecon Engineering Company, Home First Finance Company India, Indoco Remedies, Latent View Analytics, PDS, Tata Coffee
Earnings Fineprint
Axis Bank Q3FY23
Net profit up 62% at Rs 5,853 crore (YoY)
NII up 32% at Rs 11,460 crore (YoY)
Gross NPA at 2.38% vs 2.50% (QoQ)
Net NPA at 0.47% vs 0.51% (QoQ)
Poonawalla Fincorp Q3 FY23
Net profit up 87.53% at Rs 150.4 crore (YoY)
NII up 33.2% Rs 360 crore (YoY)
Gross NPA at 1.69% vs 4.05% (QoQ)
Net NPA at 0.89% vs 1.97% (QoQ)
Karur Vysya Bank Q3 FY23
Net profit up 56% at Rs 289 crore (YoY)
Net interest income up 30% at Rs 889 crore (YoY)
Gross NPA at 2.66% vs 3.97% (QoQ)
Net NPA at 0.89% vs 1.36%
The board extended the tenure of MD and CEO B Ramesh Babu for three years, effective July 29, 2023.
Jammu & Kashmir Bank Q3 FY23
Net profit up 79% at Rs 311.6 crore (YoY)
Net interest income up 27% at Rs 1,257.4 crore (YoY)
Gross NPA at Rs 7.25% vs 7.67% (QoQ)
Net NPA at Rs 2.08% vs 2.1% (QoQ)
Gland Pharma Q3 FY23 (Consolidated, YoY)
Revenue down 12% at Rs 938.2 crore (Bloomberg estimate: Rs 1,114 crore)
Ebitda down 17% to Rs 289.5 crore (Bloomberg estimate: Rs 351 crore)
Ebitda margin at 30.9% Vs 32.8% (Bloomberg estimate: 31.5%)
Net profit down 15% at Rs 231.9 crore (Bloomberg estimate: Rs 269 crore)
Container Corporation of India Q3 FY23 (Consolidated, QoQ)
Revenues up 0.91% at Rs 2,004.4 crore (Bloomberg estimates: Rs 2,066.92 crore)
Ebitda down 14.91% at Rs 430.1 crore (Bloomberg estimates: Rs 465.2 crore)
Ebitda margin at 21.46% vs 25.45% (Bloomberg estimates: 22.5%)
Net profit down 3.05% at Rs 294.2 crore (Bloomberg estimates: Rs 294.37 crore)
The board approved dividend of Rs 4 per share.
Tata Communications Q3 FY23 (Consolidated, QoQ)
Revenues up 2.2% at Rs 4,528.3 crore.
Ebitda down 4.63% at Rs 1,077.3 crore.
Ebitda margin at 23.79% vs 25.5%
Net profit down 26% at Rs 393.8 crore.
Syngene International Q3 FY23 (Consolidated, YoY)
Revenue up 23% at Rs 786 crore (Bloomberg estimate: Rs 779 crore)
Ebitda up 34% at Rs 247 crore (Bloomberg estimate: Rs 234 crore)
Ebitda margin at 31.4% vs 28.6% (Bloomberg estimate: 30%)
Net profit up 5% at Rs 110 crore (Bloomberg estimate: Rs 119 crore)
Zensar Technologies Q3 FY23 (Consolidated, QoQ)
Revenues down 3% at Rs 1,197.6 crore
Ebitda up 51.6% at Rs 85.2 crore
Ebitda margin at 7.11% vs 4.55%
Net profit up 34.68% at Rs 76.5 crore
The board appointed Manish Tandon as MD and CEO for five years, effective Jan. 23. Anant Vardhan Goenka relinquished the post of interim MD, and has been appointed as non-executive vice chairman.
Jindal Stainless (Hisar) Q3 FY23 (Consolidated, YoY)
Revenues up 2.68% at Rs 4,285.2 crore
Ebitda down 35.47% at Rs 367.3 crore
Ebitda margin at 8.57% vs 13.64%
Net profit down 32.97% at Rs 344.3 crore
IIFL Securities Q3 FY23 (Consolidated, YoY)
Revenues up 8.03% at Rs 342 crore
Ebitda up 10.89% at Rs 115.6 crore
Ebitda margin at 33.81% vs 32.93%
Net profit up 15.58% at Rs 64.2 crore
The board declared an interim dividend of Rs 3 per share.
KEI Industries Q3 FY23 (Consolidated, YoY)
Revenues up 14.1% at Rs 1,784.3 crore
Ebitda up 16.17% at Rs 182.2 crore
Ebitda margin at 10.21% vs 10.03%
Net profit up 27.04% at Rs 128.6 crore
The board declared an interim dividend of Rs 3 per share
Stocks To Watch
Maruti Suzuki India: The company recalled 11,1177 units of Grand Vitara manufactured between Aug. 8 and Nov. 15 last year over a possible defect in rear seat belt mounting brackets.
Vedanta: The board will meet on Jan. 27 to consider and approve the fourth interim dividend for the current fiscal.
FSN E-Commerce Ventures: The board appointed P Ganesh as chief financial officer, effective Feb. 3.
National Highways Infra Trust: Balasubramanyam Sriram stepped down as the non-executive chairman of the company, with effect from March 31, 2023, on account of personal reasons.
TCI Express: The board will meet on Jan. 31 to, inter alia, consider and approve the second interim dividend for the current fiscal.
Welspun Corp: Saudi Arabia-based associate company East Pipes Integrated Company for Industry signed contracts for supply of steel pipes for water transmission with a total value of 569 million Saudi riyals (Rs 1,234 crore).
Dilip Buildcon: The company’s joint venture DilipBuildcon-Skyway Infraprojects has been selected by Madhya Pradesh Jal Nigam as the successful bidder for the engineering, procurement, construction, testing, commissioning, trial run, operation and maintenance of various components of Rewa Bansagar at a project cost of Rs 1947.1 crore.
NBCC (India): The company secured total business of Rs 309.1 crore in December 2022.
Sterlite Technologies: The board on Jan. 27 will consider the proposal to raise funds through rights issue.
Tata Motors: The company confirmed that the voluntary delisting of its American Depositary Shares, representing its ordinary shares, from the New York Stock Exchange will become effective close of trading on Jan. 23, 2023.
NTPC: The company completed trail operation of Unit-1 of North Karanpura Super Thermal Power Project, and added the 660 MW capacity unit in its total installed capacity.
SGX Nifty Hints At Positive Open For Benchmarks
Asian equities opened on a positive note on Tuesday, following the gains on Wall Street amid the strength in technology stocks and bets for less-aggressive rate hikes from the Federal Reserve.
Stocks edged up in Australia and Japan after the Nasdaq 100 had its best two-day rally since November. The S&P 500 gained 1.2%, extending its surge to 12% from an October low.
At 8:10 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.52% to 18,240.
The price of crude oil has risen above $88 per barrel. Bitcoin traded around the $23,000 level.
Domestic benchmark indices ended half a percent higher on Monday after a strong run through the day, buoyed by gains in IT, bank, auto, and FMCG stocks.
The rupee opened the week stronger against the U.S. dollar, moving above the 81-mark, but lost steam later in the day to close in the red.
Overseas investors in Indian equities remained net sellers for the second straight day on Monday. Foreign portfolio investors offloaded equities worth Rs 219.8 crore, while domestic institutional investors mopped up stocks worth Rs 434.9 crore for the second day, according to NSE data.