Stock Market Today: Sensex, Nifty Snap Two-Day Gaining Streak; FPIs Turn Net Buyers
The S&P BSE Sensex was down 187 points or 0.31% at 60,858.43 while the NSE Nifty 50 was 58 points or 0.32% lower at 18,107.85.
KEY HIGHLIGHTS
FPIs Turn Net Buyers
Overseas Investors in Indian equities turned net buyers after a day on Thursday.
Foreign portfolio investors bought equities worth Rs 399.98 crore, according to data from the National Stock Exchange.
On the other hand, domestic institutional investors turned net sellers breaking nine days streak and sold stocks worth Rs 128.96 crore, 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 17,877.86 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 7.31% on Thursday. It ended at 7.32% on Wednesday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 11 paise to 81.36 at close on Thursday. It closed at 81.25 on Wednesday.
Source: Bloomberg
Closiing Bell
The Indian benchmark indices snapped their two-day rally to close lower in trade on Thursday. Indices were trading lower amid through the day as Sensex declined below 61,000 level.
Asian shares ended mixed, whereas European stocks were trading lower on Thursday as investors weighed the risks of economic slowdown and the outlook for interest rates.
Contracts for the S&P 500 also slid, following a 1.6% drop in the index on Wednesday, as per the Bloomberg data.
The S&P BSE Sensex was down 187 points or 0.31% at 60,858.43 while the NSE Nifty 50 was 58 points or 0.32% lower at 18,107.85.
Coal India Ltd., UPL Ltd., ONGC Ltd., BPCL Ltd., and Tata Steel Ltd. and were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Adani Enterprises Ltd., Asian Paints Ltd., Tata Motors Ltd., IndusInd Bank Ltd. and Kotak Mahindra Bank Ltd. were the top losers in the gauge.
The broader market indices were trading lower; S&P BSE MidCap was down 0.06%, whereas S&P BSE SmallCap was lower at 0.24%.
Twelve out of the 19 sectors compiled by BSE declined, while seven advanced in trade.
The market breadth was skewed in favour of the bears. About 1,591 rose, 1,914 declined, 121 remained unchanged on the BSE.
Happiest Minds Technologies Q3 Earnings
Revenue up 3% QoQ at Rs 366.88 crore
Net profit up 3.1% QoQ at Rs 57.58 crore
Source: Exchange filing
Havells India Q3 Net Income Beats Estimates
Havells India reported net income for the third quarter that beat the average analyst estimate.
Havells India Q3 Earnings (Consolidated, YoY)
Net income down by 7.2% YoY to 283.06 crore rupees. (Bloomberg estimate: Rs 273 crore)
Revenue up 13% YoY to Rs 4,120 crore, (Bloomberg estimate: Rs 4056 crore)
Ebitda down by 3.6% YoY to Rs 424 crore
Ebitda margin at 10.3% vs 12.1%
Dividend per share 3 rupees
Source: Exchange filing
European Markets Trade Lower
Manasi Tata Appointed As New Vice Chairperson Of Toyota Kirloskar Motor
Manasi Tata, daughter of Vikram Kirloskar, has been appointed as the new vice chairperson of Toyota Kirloskar Motor with immediate effect.
She will also take over as the vice chairperson of Toyota Kirloskar Auto Parts.
In December, Kirloskar Systems appointed Tata as director on the boards of its joint ventures.
The move comes less than two months after the death of Vikram Kirloskar on Nov. 29.
Manasi Tata is married to Neville Tata, son of Trent Chairman Noel Tata.
Source: Company statement
ICICI Securities Declines After Q3 Net Income Misses Estimates
Shares of ICICI Securities Ltd. fell 1.46% in trade on Thursday after it reported its quarterly earnings. While net income of the company missed analyst estimates, revenue was beat.
The stock gained as much as 2.80% intraday, the most in over four weeks since Dec. 21, 2022. Total traded volume stood at 1.8 times its 30-day average.
Out of the 10 analysts tracking the company, six maintain a 'buy' rating, one recommends 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 15.1% over the next 12 months.
Source: Bloomberg, Exchange filing
Asian Paints Q3 FY23 (Consolidated, YoY)
Revenue up 1% at Rs 8636.74 crore Vs Rs 8527.24 crore
Net profit up 6% to Rs 1072.67 crore Vs Rs 1015.7 crore
EBITDA up 4% to Rs 1611.43 crore Vs Rs 1542.31 crore
Margins at 18.7% Vs 18.1%
Source: BSE Filing
Persistent Systems Shares Jump 6% Aided By Q3 Earnings
Shares of Persistent Systems Ltd. rose 6.43% in trade on Thursday.
The company posted an 8.15% sequential rise in its net profit for the third quarter of the current financial year to Rs 237.9 crore.
However, company's Ebitda beat analyst expectations by rising 11.57% quarter-on-quarter at Rs 333.2 crore. The Ebit margin clocked a rise of 15.36%, as compared to 14.58% in the previous quarter of the ongoing fiscal.
As per the Bloomberg data, the company reported EPS above estimates and sales in line with estimates.
Persistent Systems Q3 FY23 (Consolidated, QoQ)
Revenue up 5.89% at Rs 2,169.4 crore. (Bloomberg estimate: Rs 2,160.6 crore)
Ebit up 11.57% at Rs 333.2 crore. (Bloomberg estimate: Rs 315.6 crore)
Ebit margin at 15.36% vs 14.58%. (Bloomberg estimate: 14.61%)
Net profit up 8.15% at Rs 237.9 crore. (Bloomberg estimate: Rs 239.9 crore)
The board approved an interim dividend of Rs 28 per share.
The stock gained as much as 6.58% intraday, the most in over three months since Oct. 6, 2022. Total traded volume stood at 7.8 times its 30-day average.
Out of the 34 analysts tracking the company, 21 maintain a 'buy' rating, eight recommend a 'hold' and five suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 2.9% over the next 12 months.
Source: Bloomberg, Exchange filing
Midday Market Wrap
The Indian benchmark indices continued trading lower amid volatility during midday on Thursday after it opened marginally lower, snapping the two-day gains.
Asian shares were mixed and European futures fell on Thursday as investors weighed the risks of economic slowdown and the outlook for interest rates.
Contracts for the S&P 500 also slid, following a 1.6% drop in the index on Wednesday, as per the Bloomberg data.
As of 12:04 pm, the S&P BSE Sensex was down 86 points or 0.14% at 60,959.57 while the NSE Nifty 50 was 33 points or 0.18% lower at 18,132.80.
Tata Steel Ltd., ONGC Ltd., HDFC Life Insurance Co., Coal India Ltd., and SBI Life Insurance Co. and were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Adani Enterprises Ltd., Hindustan Unilever Ltd., IndusInd Bank Ltd., Adani Ports and SEZ Ltd. and Tata Consumer Products Ltd. were the top losers in the gauge.
The broader market indices were mixed; S&P BSE MidCap was down 0.08%, whereas S&P BSE SmallCap was higher at 0.04%.
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 1,588 rose, 1,718 declined, 163 remained unchanged on the BSE.
Rashi Peripherals Owner Of RP Tech, Files For Rs 750-Crore IPO
RP Tech, a distributor for JBL, Nvidia, Dell and Fitbit among others, has filed for a Rs 750 crore IPO.
Offer to be a pure fresh issue of shares.
Source: DRHP
PhonePe raises $350 million led by General Atlantic.
PhonePe has raised $350 million (Rs 2,845 crore) in a round led by General Atlantic.
Funding comes at a valuation of $12 billion pre-money.
Funding part of the first tranche of $1 billion fundraising in 2023.
Source: Press release
Maruti Suzuki Commences Exports Of Grand Vitara
Maruti Suzuki has started the exports of its premium SUV, Grand Vitara. The first shipment of Grand Vitara sailed to Latin America from the Kamarajar port recently.
The company aims to export Grand Vitara to more than 60 countries across Latin America, Africa, Middle East, ASEAN and neighboring regions.
As per SIAM's report, in 2022, Maruti Suzuki registered an export of over 2.6 lakh vehicles, its highest-ever exports in a calendar year.
With the addition of Grand Vitara, the company aims to strengthen its position as leading passenger vehicle exporter.
Source: Exchange filing
Mahindra Lifespace Developers Advances In Trade
Shares of Mahindra Lifespace Developers Ltd. rose 7.10% in trade on Thursday after the company was selected to redevelop two adjacent residential societies in Santacruz West, Mumbai. The project has a revenue potential of Rs 500 crore.
The stock gained as much as 8.54% intraday, the most in nine months since Aug. 19, 2022. Total traded volume stood at 49.1 times its 30-day average.
The eight 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 upside of 35.8% over the next 12 months.
Source: Bloomberg, Exchange filing
Rallis India Shares Decline After Net Profit Falls In Q3
Shares of Rallis India Ltd. declined 4.62% in trade on Thursday after reporting nearly 43% year-on-year fall in its net profit to Rs 22.6 crore in the third quarter of the ongoing financial year.
While the earnings missed analyst expectations, the margin narrowed to 8.46%, as compared to 10.73% in the same quarter last fiscal.
Rallis India Q3 FY23 (Consolidated, YoY)
Revenue up 0.37% at Rs 630.4 crore. (Bloomberg estimate: Rs 829.6 crore)
Ebitda down 20.89% at Rs 53.3 crore. (Bloomberg estimate: Rs 99.2 crore)
Ebitda margin at 8.46% vs 10.73%. (Bloomberg estimate: 12%)
Net profit down 42.98% at Rs 22.6 crore. (Bloomberg estimate: Rs 58.9 crore)
The stock fell as much as 6.80% intraday, the most in five weeks since Dec. 23, 2022. Total traded volume stood at 5.1 times its 30-day average.
Out of the 19 analysts tracking the company, six maintain a 'buy' rating, seven 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 2.9% over the next 12 months.
Source: Bloomberg
Adani Group Stocks Decline
The gauge of Adani Group stocks declined in trade on Thursday after Adani Enterprises Ltd. announced India's largest follow-on public offering of Rs 20,000 crore on Wednesday.
The floor price for its FPO is set at Rs 3,112 per share, it opens on Jan. 27.
The cap price for India's biggest such issue is Rs 3,276 apiece, according to an exchange filing by the company issued on Wednesday.
All the 10 Adani Group listed stocks declined in trade with Adani Green Energy Ltd. falling the most by 5.15%. Followed by Adani Enterprises Ltd., Adani Transmission Ltd., Adani Ports and SEZ Ltd., Adani Wilmar Ltd. and Adani Power Ltd., falling more than 1% each.
The company is offering a discount of Rs 64 per share to retail buyers in its FPO.
The minimum bid lot for the FPO will be four equity shares. Buyers can bid for multiples of four equity shares thereafter.
On application, bidders will have to pay half of the offer price upfront, Adani Enterprises said in the statement. The balance amount will have to be paid on one or more subsequent calls, it said.
The FPO will open for anchor investors on Jan. 25, while retail buyers can bid for the issue from Jan. 27 to Jan. 31, the RHP shows.
Axis Bank Rises As It 'Catches Up With Peers On Risk-Return Profile,' Says Bloomberg
Shares of Axis Bank Ltd. rose 1.33% in trade on Thursday.
The stock rose as much as 1.52% intraday, the most since Jan. 9, 2023. Total traded volume stood at 2.4 times its 30-day average.
"Axis Bank has emerged a structurally stronger franchise on both assets and liabilities, and could persist in delivering consistent performance in fiscal 2023. Asset quality remains robust, and it has a sizable buffer of provisions to cushion possible shocks. Structural changes in the business may narrow the performance gap vs. comparable peers," says Rena Kwok, Credit Analyst (Financials) at Bloomberg Intelligence.
Out of the 51 analysts tracking the company, 49 maintain a 'buy' rating and two recommend a 'hold' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 14.8% over the next 12 months.
Source: Bloomberg,
JSW Energy Up As It Secures Order For Battery Storage System From SECI
Shares of JSW Energy Ltd. rose 0.94% in trade on Thursday. Total traded volume stood at 1.7 times its 30-day average.
JSW Renew Energy Five, a subsidiary of, JSW Energy has received order for 500MW standalone battery storage system from Solar Energy Corporation of India.
Company will receive a fixed capacity charge of Rs 10.8 lakhs per mega-watt per month for twelve years.
40% of the project capacity is to be managed by JSW Energy.
Out of the 11 analysts tracking the company, one maintains a 'buy' rating, one recommends 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 19.7% over the next 12 months.
Source: Bloomberg, Exchange filing
Kohinoor Foods Surges Nearly 39% In Three Days
Shares of Kohinoor Foods Ltd. rose 12.80% in trade on Thursday.
The stock has risen 38.74% for the third-straight session. Scrip hit a 20% upper circuit at Rs 66 apiece on Wednesday.
Total traded volume stood at 76.7 times its 30-day average.
Source: Bloomberg
Opening Bell
The Indian benchmark indices opened marginally lower on Thursday as Sensex receded below the 61,000 level after a day of gains.
Asian markets followed the Wall Street lower on Thursday. Hong Kong equities led declines, with weakness in tech companies, as per Bloomberg.
Japanese shares were also lower and futures for the S&P 500 fell after the benchmark closed down 1.6% on Wednesday, the biggest decline in a month.
The S&P BSE Sensex was down 126 points or 0.21% at 60,920.02 while the NSE Nifty 50 was 46 points or 0.25% lower at 18,119.80.
Axis Bank Ltd., HDFC Life Insurance Co., Asian Paints Ltd., ONGC Ltd., BPCL Ltd. and UPL Bank Ltd. and were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Adani Enterprises Ltd., Hindalco Industries Ltd., Kotak Mahindra Bank Ltd., Titan Co. and Bajaj Finserv Ltd. were the top losers in the gauge.
The broader market indices were trading lower; S&P BSE MidCap was down 0.36%, whereas S&P BSE SmallCap was lower at 0.27%.
All the 19 sectors compiled by BSE declined.
The market breadth was skewed in favour of the bears. About 1,217 rose, 1,383 declined, 126 remained unchanged on the BSE.
Yield On The 10-Year Declines
The yield on the 10-year bond opened lower by 2 bps at 7.30% on Thursday. It ended at 7.32% on Wednesday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 12 paise to 81.37 at open on Thursday. It closed at 81.25 on Wednesday.
Source: Bloomberg
JSW Energy Secures Order For Battery Storage System From SECI
JSW Renew Energy Five, a subsidiary of, JSW Energy has received order for 500MW standalone battery storage system from Solar Energy Corporation of India.
Company will receive a fixed capacity charge of Rs 10.8 lakhs per mega-watt per month for twelve years.
40% of the project capacity is to be managed by JSW Energy.
Source: Exchange filing
Nifty May Open In The Red Tracking Global Cues | Trade Setup For Thursday
Global Cues
U.S. Dollar Index at 102.36
U.S. 10-year bond yield at 3.37%
Brent crude down 0.94% to $84.18 per barrel
Nymex crude at $78.55 per barrel
SGX Nifty down 0.53% to 18,126 as of 8:15 a.m.
Bitcoin down 0.15% to $20,747.78
Pledge Share Details
Shilpa Medicare: Promoter group Dharmavati Bhutada created a pledge of 20 lakh shares, promoter group Keshav Bhutada created a pledge of 15 lakh shares, promoter group Madhav Vishnukant Bhutada created a pledge of 15 lakh shares, between Jan. 16-17.
Bulk Deals
Abans Holdings: Vishal Rajnikant Bhansali sold 4.30 lakh shares (0.86%) at Rs 269.69 apiece.
Q3 Earnings Results Today
Hindustan Unilever, Asian Paints, Hindustan Zinc, Havells India, Polycab India, Mphasis, L&T Technology Services, AU Small Finance Bank, PVR, ICICI Securities, IIFL Wealth Management, Datamatics Global Services, Can Fin Homes, IndiaMART InterMESH, Anant Raj, Happiest Minds Technologies, Hatsun Agro Products, Kuabntum Papers, Meghmani Finechem, Sterling and Wilson Renewable Energy
Earnings Fineprint
IndusInd Bank Q3FY23 (Consolidated)
NII up 18.51% at Rs 4,495 crore (YoY).
Net profit up 58.18% at Rs 1,963 crore (YoY).
Gross NPA at 2.06% Vs 2.11% (QoQ).
Net NPA at 0.62 Vs 0.61% (QoQ).
Rallis India Q3 FY23 (Consolidated, YoY)
Revenue up 0.37% at Rs 630.4 crore. (Bloomberg estimate: Rs 829.6 crore)
Ebitda down 20.89% at Rs 53.3 crore. (Bloomberg estimate: Rs 99.2 crore)
Ebitda margin at 8.46% vs 10.73%. (Bloomberg estimate: 12%)
Net profit down 42.98% at Rs 22.6 crore. (Bloomberg estimate: Rs 58.9 crore)
Persistent Systems Q3 FY23 (Consolidated, QoQ)
Revenue up 5.89% at Rs 2,169.4 crore. (Bloomberg estimate: Rs 2,160.6 crore)
Ebit up 11.57% at Rs 333.2 crore. (Bloomberg estimate: Rs 315.6 crore)
Ebit margin at 15.36% vs 14.58%. (Bloomberg estimate: 14.61%)
Net profit up 8.15% at Rs 237.9 crore. (Bloomberg estimate: Rs 239.9 crore)
The board approved an interim dividend of Rs 28 per share.
Alok Industries Q3 FY23 (Consolidated, YoY)
Revenue down 19.91% at Rs 1,705.7 crore.
Ebitda loss of Rs 42.4 crore against Ebitda of Rs 197.5 crore.
Net loss widened to Rs 249.8 crore vs Rs 0.09 crore.
Oracle Financial Services Software (Consolidated, QoQ)
Revenue up 5.33% at Rs 1,449.3 crore. (Bloomberg estimate: Rs 1,475 crore)
Ebit up 7.41% at Rs 585.6 crore.
Ebit margin at 40.41% vs 39.62%.
Net profit up 9.96% at Rs 437.3 crore. (Bloomberg estimate: Rs 488 crore)
Stocks To Watch
Adani Enterprises: The company filed the RHP for its Rs 20,000-crore follow-on public offering, with a floor price at Rs 3,112 apiece and cap price at Rs 3,276 per share. The company also announced a discount of Rs 64 per share for retail buyers.
Vedanta: The company will acquire the debt-laden Meenakshi Energy for Rs 1,440 crore.
State Bank of India: The bank raised Rs 9,718 crore through 15-year infrastructure bonds at 7.7% coupon rate.
Aurobindo Pharma: The company’s subsidiary APL Health Care received Form 483 with two observations from U.S. FDA following an inspection of its unit I and III, an orals and derma manufacturing facility in Jadcherla, Telangana.
Coal India: In a coal ministry review, the company was found to have produced 513 million ton of coal so far in fiscal 2023, and is expected to surpass the target of 700 million ton for the current fiscal. The ministry has pegged the production target for the company during 2023-24 at 780 million ton.
Kotak Mahindra Bank: The board in its meeting scheduled on Jan. 21 will consider raising funds via non-convertible debentures during the remaining period of FY 2022-23, and by the way of NCDs, bonds or other debt securities during FY24.
Welspun Enterprises: The board of the company has approved the voluntary liquidation of the subsidiary Welspun Natural Resources to streamline the structure and reduce the administrative overheads of the group.
Mahindra Lifespaces Developers: The company has been selected to redevelop two adjacent residential societies in Santacruz West, Mumbai. The project has a revenue potential of Rs 500 crore.
Wipro: The company opened Wipro-AWS Launch Pad Center in Toronto, Canada.
DCM Shriram: The expansion of distillation capacity from 200 KLD to 320 KLD at DCM Shriram Ltd's Unit, Ajbapur, has been commissioned effective from Jan. 16.
SGX Nifty Signals Lower Opening For Stocks
Asian stocks were set to decline on Thursday after U.S. stocks fell and treasuries rallied. Shares edged lower in Australia, and a gauge of U.S.-listed Chinese companies slumped 2.5%.
At 8:15 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was down 0.53% to 18,126.
U.S. stocks extended losses as economic data sparked concerns over the growth outlook. The S&P 500 closed 1.6% lower on Wednesday, the biggest decline in a month. The yield on 10-year Treasuries declined to 3.37%.
Crude oil prices declined by nearly 1%. Bitcoin's rally came to an end when it fell below the $21,000 mark.
Indian benchmark indices maintained their upward trend for the second day in a row on Wednesday, with the Sensex reclaiming the 61,000 mark.
Rupee snapped its two-day downfall against the U.S. dollar to close at its highest level since Dec. 2, 2022.
Overseas investors in Indian equities turned into net sellers after a day on Wednesday. Foreign portfolio investors offloaded equities worth Rs 319.23 crore, while domestic institutional investors bought equities worth Rs 1,225.96 crore, as per NSE,