Stock Market Today: Sensex, Nifty Snap Three-Day Losing Streak; Adani Enterprises Up 4.8%

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

Foreign portfolio investors offloaded equities worth Rs 6,792.8 crore, according to data from the National Stock Exchange.

On the other hand, domestic institutional investors mopped up stocks worth Rs 5,512.6 for the sixth day in a row, 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 36,025.09 crore of Indian stocks so far in 2023.

The yield on the 10-year bond closed largely flat at 7.40% on Monday. It ended at 7.39% on Friday.

Source: Bloomberg

The local currency strengthened by 2 paise to 81.50 at close on Monday. It closed at 81.52 on Friday.

Source: Bloomberg

The Indian benchmark indices swung amid volatility before closing marginally higher in trade on Monday as the Adani Enterprises recovered along with other group stocks like Adani Ports and SEZ Ltd., ACC Ltd. and Ambuja Cement Ltd. The banking company shares also recovered their losses.

Europe shares and U.S. equity futures declined as caution crept in at the start of a week marked by interest-rate decisions, coupled with the big companies ready to report earnings on both sides of the Atlantic.

The S&P BSE Sensex closed up 170 points or 0.29% at 59,500.41 while the NSE Nifty 50 was 45 points or 0.25% higher at 17,648.95.

Adani Enterprises Ltd., Bajaj Finance Ltd., UltraTech Cement Ltd., Bajaj Finserv Ltd. and HCL Technologies Ltd. were the top gainers in the gauge.

Whereas, Power Grid Corp of India Ltd., JST Steel Ltd., IndusInd Bank Ltd., Bajaj Auto Ltd. and Larsen and ToubroLtd. and were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices traded marginally lower; S&P BSE MidCap was down 0.22%, whereas S&P BSE SmallCap was lower by 0.10%.

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

The market breadth was skewed in favour of the bears. About 1571 rose, 2,024 declined, 168 remained unchanged on the BSE.

• Company declares a second interim dividend for this fiscal at Rs 2.5 per equity share of face value of Rs 2 each.

• The payment of dividend will be completed on or before Feb. 28, 2023.

Source: Exchange filing

• Revenue from operations up 6.5% at Rs 3,405.31

• Profit after tax up 9.3% Rs 223.18 crore

• Ebitda up 7.5% at Rs 401 crore

• Ebitda margin at 11.78% vs 11.68%

Source: Exchange filing

• Revenue from operations down 8% at Rs 35,380.38 [Bloomberg estimate: Rs 34,120 crore]

• Ebitda down 86.21% at Rs 243.33 crore [Bloomberg estimate: Rs 1,030 crore]

• Ebitda margin at 0.67% vs 4.58%

Source: Exchange filing

After a few Adani Group stocks rebound in early trade today, all of declined in the second half of the trading day on Monday.

Adani Total Gas Ltd., Adani Transmission Ltd. and Adani Green Energy Ltd. declined 20% in trade.

Whereas, Adani Ports and SEZ Ltd., Adani Enterprises Ltd., ACC Ltd. and Ambuja Cement Ltd. reversed their gains and traded lower on Monday.

Source: Bloomberg

• Revenue up 50% at Rs 1,545 crore Vs Rs 1,029 crore (BBG estimate : Rs 1,522 crore)

• Net profit up 32% to Rs 203 crore Vs Rs 154 crore (BBG estimate : Rs 220 crore Profit)

• EBITDA up 42% to Rs 404 crore from Rs 285 crore (BBG estimate : Rs 426 crore Profit)

• Margins at 26.1% Vs 27.7% (BBG estimate : 28%)

Source: Exchange filing

The Indian benchmark indices traded lower with volatility through Monday as the Adani group stocks were mixed.

Stocks were mixed in choppy trading on Monday as investors split their attention between a reopening rally in mainland China, mixed trade in the Adani Group assets and looming interest-rate decisions in the U.S. and Europe.

As of 12:31 pm, the S&P BSE Sensex was down 139 points or 0.23% at 59,191.67 while the NSE Nifty 50 was 55 points or 0.31% lower at 17,549.30.

Bajaj Finance Ltd., Adani Enterprises Ltd., NTPC Ltd., Bajaj Finserv Ltd. and UltraTech Cement Ltd. were the top gainers in the gauge.

Whereas, Power Grid Corp of India Ltd., IndusInd Bank Ltd., JSW Steel Ltd., Hindustan Unilever Ltd., Hindalco Industries Ltd., SBI Life Insurance Co., Tata Steel Ltd., Axis Bank Ltd., Bajaj Auto Ltd. and ONGC Ltd. and were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices traded mixed; S&P BSE MidCap was down 0.32%, whereas S&P BSE SmallCap was higher by 0.13%.

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 1,599 rose, 1,838 declined, 191 remained unchanged on the BSE.

• It bought three brands: Disperzyme, Disperzyme-CD and Phlogam from Mumbai-based Aksigen Hospital Care.

• The brands are approved by Drugs Controller General of India for post-operative inflammation in patients undergoing minor surgery and dental procedures.

• The brands wre launched in Aksigen in 2013.

Source: Exchange filing

• Canada Pension Plan Investment to invest $205 million (approx Rs 1,671.06 crore) as an anchor investor in IndoSpace Logistics Parks IV real estate fund.

• Following the fourth investment tranche the partnership will exceed to $1 billion (approx Rs 8,100 crore) in assets.

• IndoSpace Logistics Parks IV will focus on Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune housing markets.

• CPP first venture with the company, called IndoSpace Core, established in 2017, owns the largest portfolio of logistics assets in India.

Source: Exchange filing

• Welspun India partners with Disney for the U.K. and Europe to expand its global brand portfolio via licensing agreement.

• Welspun to have rights to design, develop, manufacture and distribute a complete range of home textiles products.

• Welspun to leverage the franchise across Disney, Pixar, Marvel, and Lucas brands.

Source: Exchange filing

• The company, under the tender, will set up lab investigation facilities for BMC dispensaries and hospitals in Mumbai.

• It will establish about 600 collection centres across Mumbai city and will carry out 139 routine and special pathology tests.

• The tenure of the contract is four years.

• This is on public- private partnership.

Source: Bloomberg

• CCAvenue, has facilitated CBDC online transactions for one of India’s leading private sector banks.

• Working with many banks to offer them payment infrastructure & technology.

Source: Exchange statement

Shares of AGI Greenpac Ltd. advanced 10.48% as of 10:49 am, to Rs 337.75 apiece in trade on Monday after reporting strong third-quarter earnings results.

The third-quarter net profit was up 80.81% at Rs 53.2 crore as compared to the same quarter of the previous financial year.

Company's revenue was 43.39% higher annually at Rs 567.3 crore in the said quarter of the ongoing fiscal.

Additionally, the earnings before interest, taxes, depreciation and amortisation was up 40.47% at Rs 109.5 crore in the current financial year 2022-2023.

AGI Greenpac Q3 FY23 (YoY)

• Revenues up 43.39% at Rs 567.3 crore

• Ebitda up 40.47% at Rs 109.5 crore

• Ebitda margin at 19.31% vs 19.71%

• Net profit up 80.81% at Rs 53.2 crore

The stock advanced as much as 11.12% intraday, gaining the most in over four months since Sept. 2, 2022.

Total traded volume stood at 10.9 times its 30-day average. The relative strength index at 20 implies that the stock maybe oversold.

Source: Bloomberg, Exchange filing

• Genus Power Infrastructures Ltd. and its 100% subsidiary company (Hi-Print Metering Solutions Private Ltd.) received letter of awards of Rs. 2,855.96 crore.

• This is for appointment of Advanced Metering Infrastructure Service Provider.

• It includes design of AMI system with supply, installation and commissioning of 29.49 lakh Smart Prepaid Meters, DT Metering, HT & Feeder Metering Level energy accounting and FMS of these 29.49 lakh smart meters.

• The company anticipates robust order inflow in the coming quarters of FY24.

Source: Exchange Filing

Shares of Aarti Drugs Ltd. declined 3.69% as of 10:20 am, to Rs 395 apiece in trade on Monday.

The third-quarter net profit missed analyst estimates as per the Bloomberg data. The net profit was down 37.07% at Rs 36.6 crore as compared to the same quarter of the previous financial year. The consensus analyst estimate pegged the net profit at Rs 68.3 crore.

Company's revenue was also lower than analyst expectation of Rs 730 crore, however, it was 4.59% higher annually at Rs 663.9 crore in the third-quarter of the ongoing fiscal.

Additionally, the earnings before interest, taxes, depreciation and amortisation was down 21.51% at Rs 70.6 crore in the current financial year 2022-2023.

Aarti Drugs Q3 FY23 (Consolidated, YoY)

• Revenue up 4.59% at Rs 663.9 crore [Bloomberg estimates: Rs 730 crore]

• Net profit down 37.07% at Rs 36.6 crore [Bloomberg estimates: Rs 68.3 crore]

• Ebitda down 21.51% at Rs 70.6 crore

• Ebitda margin at 10.64% vs 14.18%

The stock declined as much as 4.66% intraday, falling the most in over four months since Sept. 26, 2022.

Total traded volume stood at four times its 30-day average. The relative strength index at 20 implies that the stock maybe oversold.

Out of the three analysts tracking the company, two maintain a 'buy' rating and one recommends a 'hold' on the stock.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 22.1% over the next 12 months.

Source: Bloomberg, Exchange filing

Shares of Bajaj Finance Ltd. advanced 3.73% to Rs 215.1 apiece in trade on Monday as Q3 profit rose but missed analyst estimates.

The asset quality of the company also improved marginally on a year-on-year basis.

Bajaj Finance Q3 FY23

• Net interest income up 24% at Rs 7,435 crore (YoY)

• Net profit up 40% at Rs 2,973 crore (Bloomberg estimate: Rs 3,027 crore) (YoY)

• Gross NPA at 1.14% vs 1.17% (QoQ)

• Net NPA 0.41% vs 0.44% (QoQ)

The stock gained as much as 4.12% intraday, the most in over 17 weeks since Oct. 4, 2022.

Total traded volume stood at 2.8 times its 30-day average.

Out of the 32 analysts tracking the company, 23 maintain a 'buy' rating, two 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 26.5% over the next 12 months.

Source: Bloomberg, Exchange filing

Shares of banking companies reverse losses and advanced in trade on Friday.

The NSE Bank Index was up 0.30% in trade. Ten out of the twelve constituents compiled by the gauge advanced, while IndusInd Bank and HDFC Bank Ltd. declined.

Punjab National Bank, IDFC First Bank Ltd., Bank of Baroda, Bandhan Bank Ltd., SBI and AU Small Finance Bank Ltd. advanced in trade.

Source: NSE

Adani group stocks opened mixed on Monday after most of them were declining for three consecutive days.

The conglomerate issued a 413-page response, over the weekend, to allegations made by Hindenburg Research, which accused the group on stock manipulation and accounting fraud.

Adani Enterprises Ltd., which opened its follow-on public offering on Jan. 27, was the top Nifty 50 gainer on Monday. The scrip was trading 10% higher. The flagship company of the Adani group launched its follow-on public offering on Friday which was subscribed 1%.

Adani Ports and Special Economic Zone, was the second highest Nifty 50 gainer, rising 9.99%.

Meanwhile, Adani Total Gas fell 15.71%, the worst performer among the Adani group stocks. Adani Transmission was trading 11.63% lower.

• Hindenburg Research says "Adani’s rebuttal has failed to specifically answer 62 of 88 questions posed" by the short-seller.

• “Of the questions it did answer, the group largely confirmed or attempted to sidestep our findings,” it says in as statement.

Source: Bloomberg

The Indian benchmark indices opened lower in trade on Monday as the Adani group stocks declined and dragged the markets in trade extending the declines from last week.

Asian markets were mixed on Monday as mainland China markets reopened and investors bet that the Federal Reserve will slow the pace of rate hikes later this week. The Hong Kong, Australian and South Korean stocks were trading lower.

U.S. stock market ended higher on Friday as Wall Street brushed off disappointing outlooks from some of the world’s largest technology companies to see the Nasdaq 100 rally 1%.

The S&P BSE Sensex opened down 229 points or 0.39% at 59,101.69 while the NSE Nifty 50 was 62 points or 0.35% lower at 17,541.95.

The yield on the 10-year bond opened largely flat at 7.38% on Monday. It ended at 7.39% on Friday.

Source: Bloomberg

The local currency weakened by 12 paise to 81.64 at open on Monday. It closed at 81.52 on Friday.

Source: Bloomberg

• U.S. Dollar Index at 101.2

• U.S. 10-year bond yield at 3.52% on Friday

• Brent crude up 0.44% to $87.04 per barrel

• Nymex crude at $80.06 per barrel

• SGX Nifty up 0.05% at 17,699 as of 8:20 a.m.

• Bitcoin down 0.75% to $23,617.67

• Jindal Steel & Power:  Promoter group Siddeshwari Tradex created a pledge of 9 lakh shares on Jan. 24.

• Abans Holding: Mafatlal Kalidas Bhansali sold 3.52 lakh shares (0.71%), Rajnikant Mafatlal Bhansali sold 5 lakh shares (0.99%), Vishal Rajnikant Bhansali HUF sold 2.89 lakh shares (0.57%) at Rs 270 apiece.

• Polyplex Corporation: Utkarsh Trading & Holdings bought 2.30 lakh shares (0.73%) and Sanjiv Sarita Consulting sold 2.30 lakh shares (0.73%) at Rs 1,525 apiece.

ADF Foods, Asian Star Co., Astec Lifesciences, Bajaj Finserv, Bajaj Holdings & Investments, Bharat Petroleum Corporation, CSB Bank, LT Foods, Dhampur Sugar Mills, Dwarkesh Sugar Industries, Exide Industries, GAIL (India), Greenpanel Industries, IFB Industries, IIFL Finance, Indian Metals & Ferro Alloys, Inox Leisure, Laurus Labs, Larsen & Toubro, Mazagon Dock Shipbuilders, Mangalore Refinery & Petrochemicals, Nippon Life India Asset Management, Orient Electric, Punjab National Bank, REC, Savita Oil Technologies, SRF, Steel Strip Wheels, Transport Corporation of India, Tech Mahindra, Trident, VRL Logistics, Vardhman Special Steels, Welspun India

Vedanta Q3 FY23 (Consolidated, YoY)

• Revenues down 0.02% at Rs 33,691 crore (Bloomberg estimate: Rs 33,981.1 crore)

• Ebitda down 36.06% at Rs 6,656 crore (Bloomberg estimate: Rs 7242.7 crore)

• Ebitda margin at 19.76% vs 30.89% (Bloomberg estimate: 21.3%)

• Net profit down 40.83% at Rs 2,464 crore (Bloomberg estimate: Rs 17,42.9 crore)

• The board approved an interim dividend of Rs 12.5 per share.

Bajaj Finance Q3 FY23

• Net interest income up 24% at Rs 7,435 crore (YoY)

• Net profit up 40% at Rs 2,973 crore (Bloomberg estimate: Rs 3,027 crore) (YoY)

• Gross NPA at 1.14% vs 1.17% (QoQ)

• Net NPA 0.41% vs 0.44% (QoQ)

Aarti Drugs Q3 FY23 (Consolidated, YoY)

• Revenue up 4.59% at Rs 663.9 crore

• Net profit down 37.07% at Rs 36.6 crore

• Ebitda down 21.51% at Rs 70.6 crore

• Ebitda margin at 10.64% vs 14.18%

Aditya Birla Sun Life AMC Q3 FY23 (Consolidated, QoQ)

• Revenues up 0.95% at Rs 314.1 crore

• Net profit down 13.25% at Rs 166.3 crore

• Ebitda up 0.48% at Rs 183.2 crore

• Ebitda margin at 58.32% vs 58.59%

Fineotex Chemical Q3 FY23 (Consolidated, YoY)

• Revenues up 3.96% at Rs 109.2 crore

• Ebitda up 13.88% at Rs 28.5 crore

• Ebitda margin at 26.14% vs 23.86%

• Net profit up 19.99% at Rs 22.1 crore

Godfrey Phillips India Q3 FY23 (consolidated, YoY)

• Revenues up 28.23% at Rs 1,112.1 crore

• Ebitda up 19.82% at Rs 209.75 crore

• Ebitda margin at 18.86% vs 20.19%

• Net profit up 70.26% at Rs 199.2 crore

AGI Greenpac Q3 FY23 (YoY)

• Revenues up 43.39% at Rs 567.3 crore

• Ebitda up 40.47% at Rs 109.5 crore

• Ebitda margin at 19.31% vs 19.71%

• Net profit up 80.81% at Rs 53.2 crore

• Hinduja Global Solutions: The board approved the proposal to buy back 60 lakh shares (24.59%) at Rs 1,700 apiece to raise Rs 1,020 crore.

• Dixon Technologies (India): The company signed a term sheet with Mega Alliance Holdings for a 51:49 joint venture to design and manufacture mobile communication equipment and related Solutions in India.

• Cressanda Solutions: The board approved raising Rs 49.50 crore via a rights issue. Meanwhile, managing director Soumyadri Bose has resigned from the position, effective Jan. 27.

• NMDC: Department of Investment and Public Asset Management announced that it has received multiple expressions of interest for privatisation of the NMDC Steel plant, and now the transaction can move to the second phase.

• Borosil Renewables: The company started trial production from the second rolling line of SG-3 solar glass furnace.

• Tube Investments of India: The company’s subsidiary Tl Clean Mobility will acquire the remaining 30.04% stake in Cellestial E-Mobility, currently held by the founders, for Rs 50.90 crore.

• Firstsource Solutions: The board will meet on Feb. 2 to consider and approve an interim dividend for the current fiscal.

• Adani Enterprises: The Rs 20,000-crore FPO was subscribed 1% on the first day, with 2% subscription in the retail portion and 1% in the HNI basket. Employees picked up 4% of FPO shares reserved for them.

• Krsnaa Diagnostics: Company has operationalised one diagnostic center at district hospital in Kanpur, Uttar Pradesh. This is the second of the eight diagnostics centers to be established as a part of the agreement with Department of Medical, Health & Family Welfare, Government of Uttar Pradesh.

• HFCL: Bags purchase orders aggregating to Rs 206.67 crores from

  Reliance Projects & Property Management Services and Reliance Retail for supply of 'Optical Fiber Cables'.

Asian markets advance on Monday as mainland China markets reopen and investors bet that the Federal Reserve will slow the pace of rate hikes later this week.

The U.S. stock market pushed higher on Friday as Wall Street brushed off disappointing outlooks from some of the world’s largest technology companies to see the Nasdaq 100 rally 1%. Equity futures for Japan suggested early gains, and Australian shares edged higher.

At 8:20 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was 0.05% up at 17,699.

Meanwhile, the yield on 10-year Treasuries advanced three basis points to 3.52%.

Crude oil was trading above $87, while Bitcoin was trading above $23,000.

Indian benchmark indices ended the week in the red amid losses in certain stocks and banking scrips.

The rupee continued to rise against the U.S. dollar even as a weak show by domestic equities restricted gains.

Overseas investors in Indian equities remained net sellers of Indian equities for the fifth day in a row on Friday. Foreign portfolio investors offloaded equities worth Rs 5,977.86 crore, while domestic institutional investors mopped up stocks worth Rs 4,252.33 for the fourth day in a row, according to NSE data.