Stock Market Today: Sensex, Nifty End With Steady Gains As I.T., Banks, Autos Rise; FPIs Remain Net Sellers
Live updates on India's equity markets on Jan. 23.
KEY HIGHLIGHTS
FPIs Remain Net Sellers
Overseas investors in Indian equities remained net sellers for the second-straight day on Monday.
Foreign portfolio investors offloaded equities worth Rs 219.87 crore, according to data from the National Stock Exchange.
On the other hand, domestic institutional investors, mopped up stocks worth Rs 434.96, for the second 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 20,099.98 crore of Indian stocks so far in 2023.
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 26 paise to 81.39 at close on Monday. It closed at 81.13 on Friday.
Source: Bloomberg
Yield On The 10-Year Largely Flat
The yield on the 10-year bond closed largely flat at 7.35% on Monday.
Source: Bloomberg
Closing Bell
The Indian benchmark indices gained steadily and advanced in trade through on Monday.
The dollar weakened against most currencies after a slew of Federal Reserve officials laid out the case for a downshift in the U.S. central bank’s rate-tightening campaign, contrasting with the hawkish European policymakers. Many major Asia markets were closed for Lunar New Year celebrations.
The S&P BSE Sensex closed up 319 points or 0.53% at 60,941.67 while the NSE Nifty 50 was 90 points or 0.5% higher at 18,118.55.
Sun Pharmaceutical Industries Ltd., Hindustan Unilever Ltd., Tech Mahindra Ltd., Eicher Motors Ltd. and UPL Ltd. were the top gainers in the gauge.
Whereas, UltraTech Cement Ltd., Grasim Industries Ltd., NTPC Ltd., Tata Steel Ltd. and JSW Steel Ltd. and were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were mixed; S&P BSE MidCap was up 0.44%, whereas S&P BSE SmallCap was lower by 0.30%.
Twelve out of the 20 sectors compiled by BSE advanced, while eight declined in trade.
The market breadth was skewed in favour of the bears. About 1,666 rose, 1,976 declined, 189 remained unchanged on the BSE.
Jindal Stainless Appoints New ED, Group CFO
Jindal Stainless Ltd. appoints Anurag Mantri as the new executive director and group chief financial officer.
Source: Exchange filing
Lemon Tree Hotels Declines After Signing Franchise Hotel In Kumbhalgarh
Shares of Lemon Tree Hotels Ltd. declined 0.67% to Rs 73.6 apiece in trade on Monday. The company signed a franchised hotel in Kumbhalgarh, Rajasthan, which is expected to open in December 2023.
The stock fell as much as 1.48% intraday. Out of the 13 analysts tracking the company, 11 maintain a 'buy' rating and two recommend to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 45.4% over the next 12 months.
Source: Bloomberg, Exchange filing
I.T. Stocks Rise In Trade
Shares of I.T. companies declined in trade on Monday.
The NSE Nifty IT Index was up 2.11%. All the 10 stocks compiled by the gauge advanced in trade.
Coforge Ltd., Persistent Systems Ltd., L&T Technology Services Ltd., LTIMindtree Ltd. and Tech Mahindra Ltd. were 1% higher in trade.
Source: Bloomberg
IDBI Bank Q3 Earnings
Net Interest Income up 22.78% YoY at Rs 2,925.35 crore
Net Profit up 60.36% YoY at Rs 927.27
Gross NPA 13.82% vs 16.51% QoQ
Net NPA 1.07% vs 1.15% QoQ
Source: Exchange filing
European Markets Open Higher
Stocks In Focus | Yes Bank, Kotak Mahindra Bank, JSW Energy And More
Canara Bank Q3 Earnings
Net Interest Income up 23.81% YoY at Rs 8,599.95 crore
Net Profit up 47.88% YoY at Rs 2,882 crore
Gross NPA 5.90% vs 6.37% QoQ
Net NPA 1.96% vs 2.19% QoQ
Source: Exchange filing
Rupee Weakens Against The U.S. Dollar
Indoco Remedies Receives Nine Observations For Goa Plant From The U.S. FDA.
Indoco Remedies receives form-483 with nine observations from the U.S. FDA for its solid oral formulation facility at Goa.
Inspection was conducted from Jan. 16 to Jan. 20, 2023. The company will address the observations within stipulated time.
This will not have an impact on the supplies and the existing revenues from this facility, said the company.
Source: Exchange filing
Midday Market Update
The Indian benchmark indices advanced in trade on Monday after a rebound on Wall Street on Friday led by the U.S. Fed's comments alleviating fears of aggressive policy moves.
The dollar weakened against most of its Asian counterparts and Japanese stocks climbed amid subdued trading on Monday, with many major centers in Asia closed for Lunar New Year celebrations.
As of 12:04 the S&P BSE Sensex was up 346 points or 0.57% at 60,968.11 while the NSE Nifty 50 was 100 points or 0.55% higher at 18,127.10.
Power Grid Corp of India Ltd., Sun Pharmaceutical Industries Ltd., Eicher Motors Ltd., Hindustan Unilever Ltd. and Hindalco Industries Ltd. were the top gainers in the gauge.
Whereas, UltraTech Cement Ltd., JSW Steel Ltd., NTPC Ltd., Grasim Industries Ltd. and Adani Ports and SEZ Ltd. and were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were mixed; S&P BSE MidCap was up 0.28%, whereas S&P BSE SmallCap was lower by 0.15%.
Fourteen out of the 19 sectors compiled by BSE advanced, while five declined in trade.
The market breadth was skewed in favour of the bulls. About 1,776 rose, 1,692 declined, 196 remained unchanged on the BSE.
Cement Stocks Under Pressure
Shares of cement companies declined in trade on Monday.
JK Cement Ltd., Ambuja Cement Ltd., UltraTech Cement Ltd., ACC Ltd., Shree Cement Ltd. and Dalmia Bharat Ltd. fell more than 1% in trade.
Source: Bloomberg
Real Estate Stocks Decline In Trade
Shares of real estate companies declined in trade on Monday.
The NSE Nifty Realty Index was down 0.5%. Six out of the 10 stocks compiled by the gauge declined, while four advanced in trade.
Macrotech Developers Ltd., Brigade Enterprises Ltd., Sobha Ltd., Indiabulls Real Estate Ltd. and Prestige Estate Projects Ltd. were nearly 1% lower in trade.
Source: NSE
Adani Green Energy Q3 Operational Highlights
Sale of energy in solar portfolio up 9% year-on-year in October-December.
Sale of energy in wind portfolio up 47% on year aided by capacity increase to 971 MW from 497 MW.
High Capacity Utilisation Factor of 32.9% reported in hybrid portfolio.
Source: Exchange filing
Meghmani Organics Declines
Shares of Meghmani Organics Ltd. declined 6.44% to Rs 98.8 apiece in trade on Monday. The company commissioned titanium dioxide plant at Dahej, Gujarat with an installed capacity of 16,500 metric tonnes per annum.
It acquired Kilburn Chemicals Ltd. for Rs 132 crore in December 2021 by making 100% upfront payment. After which the company incurred total capital expenditure to the tune of Rs.275 crore including the acquisition cost and commissioning of the first phase in January 2023.
The stock fell as much as 11.32% intraday. Total traded volume stood at 11.2 times its 30-day average.
Source: Bloomberg, Exchange filing
EaseMyTrip Ventures Into 'EaseMyTrip Franchise' As Retail Outlets
EaseMyTrip ventures into 'EaseMyTrip Franchise' as retail outlets with aims of having a localised centric approach.
To offer a commission arrangement for people passionate to join the travel business sector.
Source: Exchange filing
TCS Gets Deal From Bitcoin Suisse
Swiss crypto firm Bitcoin Suisse has brought on TCS for support for its digital assets and Swiss and global markets readiness.
TCS’ cloud-based solution, BaNCS, to cover core functions such as brokerage, custody, payments for crypto assets among others.
Source: Exchange filing
ICICI Bank Shares Rise As Q3 Profit Rises On Higher Interest Income, Lower Provisions
Shares of ICICI Bank Ltd. rose 1.05% as of 10:34 am, to Rs 879.5 apiece in trade on Monday after quarterly profit rose in the third-quarter, beating estimates, aided by higher interest income and lower provisions.
Net profit rose 25.4% year-on-year to Rs 6,194 crore, the private lender said in its exchange filing. Analysts polled by Bloomberg had estimated a net profit of Rs 5,800 crore in said quarter.
Net interest income, or core income, increased 23% year-on-year to Rs 12,236 crore. Other income rose 25% over the preceding year period to Rs 4,899 crore. Net interest margin for the third quarter stood at 3.96%, marginally lower than 4% reported in the July-September quarter.
ICICI Bank Q3FY23
Net Profit up 34.19% at Rs 8,312 crore (YoY)
Net interest income up 34.56% at Rs 16,465 crore (YoY)
GNPA at 3.07% versus 3.19% (QoQ)
NNPA at 0.55% versus 0.61% (QoQ)
The stock gained as much as 1.49% intraday, the most since Jan. 13, 2022.
Total traded volume stood at 2.3 times its 30-day average.
Out of the 55 analysts tracking the company, 53 maintain a 'buy' rating and 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 25.7% over the next 12 months.
Source: Bloomberg, Exchange filings
UltraTech Cement Shares Decline As Q3 Earnings Miss Analyst Estimates
Shares of UltraTech Cement Ltd. fell 2.33% as of 10:19 am, to Rs 7,010 apiece in trade on Monday after net profit declined, missing analysts' estimates.
The cement maker reported a 38% year-on-year decline in net profit at Rs 1062.6 crore, according to an exchange filing. That compares with the 1,710.1 crore consensus estimate of analysts tracked by Bloomberg.
Domestic grey cement sales volume rose 13% year-on-year and 12% quarter-on-quarter, respectively. Energy and raw material costs were up 33% and 13% year-on-year, while they remained flat on a sequential basis.
UltraTech Cement Q3 FY23 (Consolidated, YoY)
Revenues up 20% at Rs 15,521 crore
Ebitda down 3.45% at Rs 2,335.9 crore
Ebitda margin at 15% versus 19%
Net profit down 38% at Rs 1,062.58 crore
The stock fell as much as 2.38% intraday, the most in over four weeks since Dec. 21, 2022.
Total traded volume stood at 2.3 times its 30-day average.
Out of the 47 analysts tracking the company, 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 13.2% over the next 12 months.
Source: Bloomberg, Exchange filings
JSW Energy Shares Tumble As Profit Declines Sequentially In Q3
Shares of JSW Energy Ltd. fell 4.92% as of 10:03 am, to Rs 249.45 apiece in trade on Monday after net profit dropped sequentially on lower sales, missing analysts' estimates. Analysts polled by Bloomberg estimated a net profit of Rs 300.2 crore.
The Sajjan Jindal-led power firm's merchant sales in Q3 FY23 dropped to 95 million (9.5 crore) units compared with 323 million (32.3 crore) units a year earlier, largely on weak merchant demand, JSW Energy said.
JSW Energy Q3FY23 (Consolidated, QoQ)
Revenue down 5.82% at Rs 2248.1 crore (Bloomberg estimate: Rs 2,049.2 crore)
Ebitda down 29.72% at Rs 624.93 crore (Bloomberg estimate: Rs 777 crore)
Ebitda margin at 27.8% versus 37.2% (Bloomberg estimate: 37.92%)
Net Profit down 59.11% at Rs 186.7 crore (Bloomberg estimate: Rs 300.2 crore)
The stock fell as much as 5.2% intraday, the most in 13 weeks since Oct. 21, 2022.
Total traded volume stood at 3.3 times its 30-day average.
Out of the 11 analysts tracking the company, one maintains a 'buy' rating, two recommend a 'hold' and eight suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 12.3% over the next 12 months.
Source: Bloomberg, Exchange filing
Banking Shares Advance In Trade
Shares of banking companies advanced in trade on Monday.
The NSE Nifty Bank Index was up 1.14%. All twelve constituents compiled by the gauge advanced.
Bandhan Bank Ltd., AU Small Finance Bank Ltd., IDFC First Bank Ltd., Kotak Mahindra Bank Ltd., State Bank of India, Federal Bank Ltd., HDFC Bank Ltd. and Bank of Baroda were nearly 1% higher in trade.
Source: NSE
Yes Bank Decline In Trade
Shares of Yes Bank Ltd. declined 7.85% to Rs 18.2 apiece in trade on Monday. Company's net profit was down 80.67% year-on-year at Rs 51.5 crore in the third-quarter of the current financial year.
Yes Bank Q3FY23
Net Profit down 80.67% at Rs 51.5 crore (YoY)
Net interest income up 11.73% at Rs 1,971 crore (YoY)
GNPA at 2.02% versus 12.89% (QoQ)
NNPA at 1.03% versus 3.6% (QoQ)
During the quarter Yes Bank sold Rs 48,000 crore worth bad loans to JC Flowers ARC, bringing down its NPA ratios.
The stock fell as much as 11.65% intraday. Total traded volume stood at 1.9 times its 30-day average.
Out of the 14 analysts tracking the company, one maintains a 'buy' rating, four recommend a 'hold' and nine suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an downside of 6.7% over the next 12 months.
Source: Bloomberg, Exchange filing
Opening Bell
The Indian benchmark indices advanced in trade on Monday after a rebound on Wall Street on Friday led by the U.S. Fed's comments alleviating fears of aggressive policy moves.
The dollar weakened against its Group-of-10 counterparts and Japanese stocks climbed amid subdued trading on Monday, with many major centers in Asia closed for Lunar New Year celebrations.
The S&P BSE Sensex opened 278 points or 0.46% at 60,899.28 while the NSE Nifty 50 was 82 points or 0.46% higher at 18,109.80.
Tata Motors Ltd., Hindalco Industries Ltd., IndusInd Bank Ltd., SBI Life Insurance Co. and Kotak Mahindra Bank Ltd. were the top losers in the gauge.
Whereas, Dr. Reddy's Laboratories Ltd., NTPC Ltd., Bajaj Finserv Ltd., UltraTech Cement Ltd. and Asian Paints Ltd. and were the top gainers amongst the NSE Nifty 50 constituents.
The broader market indices were mixed; S&P BSE MidCap was up 0.07%, whereas S&P BSE SmallCap was lower by 0.08%.
Fifteen out of the 20 sectors compiled by BSE advanced, while five declined in trade.
The market breadth was skewed in favour of the bears. About 1,631 rose, 1,154 declined, 150 remained unchanged on the BSE.
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened by 19 paise to 80.97 at open on Monday. Rupee appreciated to above 81 for the first time since Dec. 1. It closed at 81.13 on Friday.
Source: Bloomberg
Yield On The 10-Year Largely Flat
The yield on the 10-year bond opened largely flat at 7.36% on Monday. It ended at 7.35% on Friday.
Source: Bloomberg
Glenmark Launches Drug For Chemotherapy Induced Nausea
Glenmark launches, Akynzeo I.V. for the prevention from both acute and delayed phases of chemotherapy-induced nausea and vomiting.
Akynzeo I.V. has been developed by Helsinn and Glenmark has exclusive marketing rights for this product in India.
Source: Exchange filing
Consolidation Continues For Fifth Straight Week | Trade Setup For Monday
Global Cues
U.S. Dollar Index at 101.69
U.S. 10-year bond yield at 3.48% on Friday
Brent crude down 0.45% to $87.24 per barrel
Nymex crude at $81.27 per barrel
SGX Nifty up 0.54% to 18,142.5 as of 8:20 a.m.
Bitcoin up 0.6371% to $22,752.09
Pledge Shares
Ajanta Pharma: Promoter Ravi Agarwal Trustee Ravi Agrawal revoked a pledge of 5 lakh shares, promoter Aayush M Agrawal trustee Aayush Agrawal Trust revoked a pledge of 34.96 lakh shares between Jan 18-20.
Bulk Trade
Hi-Tech Pipes: Motilal Oswal Funds bought 3 lakh shares (2.44%) at Rs 937 apiece and Kusum Aggrawal sold 66,000 (0.54%) shares at Rs 937.16 apiece.
Stocks To Watch
Reliance Industries: The company will raise Rs 20,000 crore via non-convertible debentures. Additionally, KV Kamath has jointed the company’s board as independent, effective Jan. 20, for a term of five years.
State Bank of India/ Canara Bank: The lender will sell its 40% stake in Moscow-based joint venture Commercial Indo Bank LLC to partner State Bank of India for $14.67 million.
Trent: The company executed a joint venture agreement with MAS Amity to set up an entity in India for jointly developing a business of intimate wear and other apparel related products.
Page Industries: The board will meet on Feb. 9 to consider third interim dividend for the fiscal and financial results for the quarter ended December 2022.
Lemon Tree Hotels: The company signed a franchised hotel in Kumbhalgarh , Rajasthan, which is expected to open in December 2023.
Strides Pharma: The World Health Organisation completed inspection of the company’s facility in Puducherry from Jan. 16-20.
Anupam Rasayan India: The board will meet on Jan. 27 to consider and approve second interim dividend for the fiscal and the financial results for the December quarter.
Embassy Office Parks REIT: The board will meet on Jan. 25 to consider and approve the proposal to raise debt, and the financial results for the December quarter.
ITC: Navneet Doda has stepped down from the board of the company as a non-executive director with effect from Jan. 20.
IDFC First Bank: The board of the bank approved approaching RBI for the appointment of Madhivanan Balakrishnan, chief operating officer, as the whole time director designated as executive director and chief operating officer.
Adani Enterprises: Step-down subsidiary Agneya Systems has formed a 56:44 joint venture with Armada Defence Systems manufacturing various types of products and parts for Indian armed forces.
Q3 Earnings Estimate
Several banks will announce their financial results on Monday, including Axis Bank Ltd., Canara Bank, IDBI Bank Ltd., Tamilnad Mercantile Bank Ltd. and Jammu & Kashmir Bank Ltd.
Other companies slated to declare their earnings are Jindal Stainless Ltd., Tata Communications Ltd., Jindal Stainless (Hisar) Ltd., Container Corp. of India Ltd., KEI Industries Ltd., Zensar Technologies Ltd., Maharashtra Seamless Ltd., Shoppers Stop Ltd., Amber Enterprises India Ltd., Gland Pharma Ltd., Route Mobile Ltd., Syngene International Ltd., Craftsman Automation Ltd. and Sagar Cements Ltd.
Poonawalla Fincorp Ltd., Triveni Turbine Ltd., DCX Systems Ltd., Gravita India Ltd., IIFL Securities Ltd., Prudent Corporate Advisory Services Ltd., Rajratan Global Wire Ltd., Share India Securities Ltd., Bharat Bijlee Ltd., Supreme Petrochem Ltd. and HFCL Ltd. will also announce their results.
Earnings Fineprint
Reliance Industries (Consolidated QoQ)
Revenue down 5.27% at Rs 2,20,592 crore (Bloomberg estimate: Rs 2,29,000 crore)
Ebitda up 24.04% at Rs 35,247 crore (Bloomberg estimate: Rs 33,626 crore)
Ebitda Margin at 16.2% versus 12.4% (Bloomberg estimate: 14.68%)
Net Profit up 14.79% at Rs 17,806 crore (Bloomberg estimate: Rs 16,037 crore)
JSW Steel Q3 FY23 (Consolidated, YoY)
Revenues up 2.79% at Rs 39,134 crore (Bloomberg estimate: Rs 39,601.07 crore)
Ebitda down 50.21% at Rs 4,547 crore (Bloomberg estimate: Rs 4,416.01 crore)
Ebitda margin at 11.62% versus 23.99% (Bloomberg estimate: 11.2%)
Net profit down 88.75% at Rs 490 crore (Bloomberg estimates: Rs 1,104.73 crore)
RBL Bank Q3FY23
Net profit up 33.97% at Rs 209 crore (YoY)
NII up 13.66% at Rs 1,148 crore (YoY)
Gross NPA at 3.61% versus 3.80% (QoQ)
Net NPA at 1.18% versus 1.26% (QoQ)
LTIMindtree Q3 FY23 (Consolidated, QoQ)
Revenues up 4.77% at Rs 8,620 crore (Bloomberg estimate: Rs 5,956.35 crore)
Ebit down 16.88% at Rs 1,196.70 crore (Bloomberg estimate: Rs 970.56 crore)
Ebit margin at 13.88% versus 17.5% (Bloomberg estimate: 16.29%)
Net profit down 15.82% at Rs 1,000.50 crore (Bloomberg estimate: Rs 969.11 crore)
JSW Energy Q3FY23 (Consolidated, QoQ)
Revenue down 5.82% at Rs 2248.1 crore (Bloomberg estimate: Rs 2,049.2 crore)
Ebitda down 29.72% at Rs 624.93 crore (Bloomberg estimate: Rs 777 crore)
Ebitda margin at 27.8% versus 37.2% (Bloomberg estimate: 37.92%)
Net Profit down 59.11% at Rs 186.7 crore (Bloomberg estimate: Rs 300.2 crore)
Kotak Mahindra Bank Q3FY23
Net profit up 30.97% at Rs 2,791 crore (YoY)
Net interest income up 30.43% Rs 5,654 crore (YoY)
Gross NPA at 1.90% versus 2.08% (QoQ)
Net NPA at 0.43% versus 0.55% (QoQ)
UltraTech Cement Q3 FY23 (Consolidated, YoY)
Revenues up 20% at Rs 15,521 crore
Ebitda down 3.45% at Rs 2,335.9 crore
Ebitda margin at 15% versus 19%
Net profit down 38% at Rs 1,062.58 crore
Yes Bank Q3FY23
Net Profit down 80.67% at Rs 51.5 crore (YoY)
Net interest income up 11.73% at Rs 1,971 crore (YoY)
GNPA at 2.02% versus 12.89% (QoQ)
NNPA at 1.03% versus 3.6% (QoQ)
During the quarter Yes Bank sold Rs 48,000 crore worth bad loans to JC Flowers ARC, bringing down its NPA ratios.
ICICI Bank Q3FY23
Net Profit up 34.19% at Rs 8,312 crore (YoY)
Net interest income up 34.56% at Rs 16,465 crore (YoY)
GNPA at 3.07% versus 3.19% (QoQ)
NNPA at 0.55% versus 0.61% (QoQ)
SBI Life Q3FY2023 (Consolidated, YoY)
Revenue up 30% at Rs 26,627 crore (Bloomberg estimate: Rs 25,021 crore)
Net profit down 16% to Rs 304 crore (Bloomberg estimate: Rs 447 crore)
VNB up 44% at Rs 3,630 crore (nine months)
VNB margin at 29.6% versus 24.8% (nine months)
SGX Nifty Indicates Higher Opening For Stocks
Asian markets advanced on Monday after a rebound on Wall Street last Friday and Fed comments alleviating fears of aggressive policy moves.
The markets in Hong Kong, Shanghai, Singapore and Seoul were closed for Lunar New Year celebrations. Many regional markets will remain closed until midweek and mainland China trading won’t resume until Jan. 30.
At 8:20 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.54% to 18,142.5.
U.S. stocks recovered from the week’s losses on the back of a rally in tech stocks. The S&P 500 rose 1.9%, while the tech-heavy Nasdaq 100 was up 2.9%. The yield on 10-year Treasuries advanced nine basis points to 3.48%.
Crude price declined 0.52%. The Bitcoin rally continued as the cryptocurrency rose around $22,300-level.
Domestic benchmark indices closed in the red at the end of week for the second day after dipping in the final minutes of trade.
Rupee ended the last session of the week higher than the U.S. dollar tracking broader weakness of the greenback.
Overseas Investors in Indian equities turned net sellers after a day on Friday. Foreign portfolio investors offloaded equities worth Rs 2,002.25 crore, while the domestic institutional investors, mopped up stocks worth Rs 1,509.95, according to NSE data.