Stock Market Today: Sensex, Nifty Recover Led By IT, Realty, Auto Stocks; FPIs Remained Net Buyers
The S&P BSE Sensex closed up 243 points or 0.40% at 61,275.09 while the NSE Nifty 50 was 86 points or 0.48% higher at 18,015.85.
KEY HIGHLIGHTS
FPIs Stay Net Buyers For The Fourth Straight Day
Overseas investors in Indian equities remained net buyers for the fourth day in a row on Wednesday.
Foreign portfolio investors mopped up equities worth Rs 432.15 crore, according to data from the National Stock Exchange.
Domestic institutional investors remained net buyers for the third day in a row and bought stocks worth Rs 516.64 crore. They previously snapped a 13-day buying streak on Feb. 9.
Foreign institutions net bought Rs 14,398.8 crore worth of Indian equities in December, but have remained net sellers of Rs 43,819.06 crore worth of Indian stocks so far in 2023.
Yield On The 10-Year Declines
The yield on the 10-year bond closed 2 basis points lower at 7.35% on Wednesday. It closed at 7.37% on Tuesday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 4 paise to 82.80 at close against the greenback on Wednesday. It closed 82.76 on Tuesday.
Source: Bloomberg
Sensex, Nifty Recoup Losses, Ends With Gains
Indian equity benchmarks recovered from the day's low and closed higher amid weak Asia trade on Wednesday.
Asian markets declined, European stocks were steady, while the Wall Street equity futures pared their losses as investors weighed how the latest inflation data from the U.S. and the U.K. will affect the outlook for interest rates and as they digested results from major companies.
The S&P BSE Sensex closed up 243 points or 0.40% at 61,275.09 while the NSE Nifty 50 was 86 points or 0.48% higher at 18,015.85.
Tech Mahindra Ltd., Apollo Hospitals Enterprise Ltd., Eicher Motors Ltd., Reliance Industries Ltd., and Adani Enterprises Ltd. and were the top gainers in the gauge.
Whereas, Hindustan Unilever Ltd., Sun Pharmaceutical Industries Ltd., ONGC Ltd., Larsen and Toubro Ltd., and IndusInd Bank Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were trading marginally higher; S&P BSE MidCap was up 0.69%, whereas S&P BSE SmallCap was higher by 0.36%.
Fifteen out of the 20 sectors compiled by BSE advanced, while five declined in trade.
The market breadth was skewed in the favour of bulls. About 1,786 stocks rose, 1,677 declined, and 137 remained unchanged on the BSE.
Adani Group Company Stocks Trade Mixed
Finolex Cables Hits 52-Week High After Brokerages Raise Target Price
Shares of Finolex Cables Ltd. rose 5.19% to Rs 628.85 apiece in trade on Wednesday.
The stock rose as much as 6.03% intraday, gaining the most since 52-weeks at Rs 633.85 apiece.
The stock ended higher on Tuesday, after swinging between gains and losses as analysts raised their target price following the third quarter earnings beat.
The company reported better-than-expected earnings in the quarter ended December.
"Improved demand outlook, looking up for market share gain," Phillip Capital said, in a note.
Finolex Cables Q3 Earnings (Consolidated, YoY)
Revenue from operations rose 18% to Rs 1,150.31 crore, as against an estimate of Rs 1,100 crore.
Net profit gained 8% to Rs 154.31 crore, compared with a forecast of Rs 103.08 crore.
Ebitda rose 23% to Rs 145.89 crore.
Ebitda margin stood at 12.7% vs 12.2%.
Jefferies retains 'buy' and raises target price to Rs 710 from Rs 655, implying a potential upside of 26%. Phillip Capital maintains 'buy' and raises target price to Rs 865 from Rs 693, implying a potential upside of 54%.
Torrent Power Rises As Q3 Profit Beats Estimates
Shares of Torrent Power Ltd. rose 9.49% to Rs 500.35 apiece in trade on Wednesday.
Company, on Tuesday reported an 86% rise in consolidated profit at Rs 684.6 crore for the quarter ended December 31, 2022, Torrent Power said in a filing to BSE.
Torrent Power Q3 FY23 (Consolidated, YoY)
Revenue up 71% at Rs 6,442.8 crore (Bloomberg estimate: Rs 6,285.6 crore)
Ebitda up 54.58% at Rs 1,443.7 crore (Bloomberg estimate: Rs 1,111.6 crore)
Ebitda margin at 22.4% vs 24.8% (Bloomberg estimate: 17.7%)
Net profit up 86% at Rs 684.6 crore (Bloomberg estimate: Rs 468.8 crore)
The company announced interim dividend of Rs 22 per share.
The stock rose as much as 10.59% intraday.
Total traded volume stood at 41.8 times its 30-day average. The relative strength index was at 64.9.
Out of the 11 analysts tracking the stock, four maintain a 'buy' rating, four recommend a 'hold' and three suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an downside of 2.3% over the next 12 months.
Source: Bloomberg, Exchange filing
Stocks In Focus :Eicher Motors, TVS Motors, Bharat Forge & More
Talking Point: Can Nifty Break Out From Prolonged Range-Bound Trade?
Sensex, Nifty Volatile In Trade
Indian equity benchmarks declined at open on Wednesday following the weak global trade.
Asian stocks and the U.S. equity futures dropped as investors weighed on the American inflation data and mixed commentary from central bankers on the outlook for interest rates.
As of 12:40 p.m., the S&P BSE Sensex was down 21 points or 0.03% at 61,011.21 while the NSE Nifty 50 was 1.5 points or 0.01% higher at 17,928.35
Eicher Motors Ltd., Apollo Hospitals Enterprise Ltd., Adani Enterprises Ltd., Tech Mahindra Ltd., and Reliance Industries Ltd. were the top gainers in the gauge.
Whereas, Britannia Industries Ltd., ONGC Ltd., Hindustan Unilever Ltd., Sun Pharmaceutical Industries Ltd., and HDFC Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were trading marginally higher; S&P BSE MidCap was up 0.25%, whereas S&P BSE SmallCap was higher by 0.09%.
Eight out of the 20 sectors compiled by BSE declined, while 12 advanced in trade.
The market breadth was split between the buyers and sellers. About 1,586 stocks rose, 1,736 declined, and 149 remained unchanged on the BSE.
NSE Signs Data Licensing Agreement With CME Group For WTI Crude Oil And Natural Gas Contracts
NSE has signed a data licensing agreement with CME Group, allowing NSE to list, trade and settle rupee denominated crude and natural gas derivatives contracts for Indian market participants.
The addition of Nymex WTI Crude Oil and Natural Gas (Henry Hub) contracts will expand the NSE product offering and its overall commodity segment.
NSE has applied to the Securities and Exchange Board of India seeking approval to launch the additional futures contracts.
Shares of MCX India Ltd. were down 3% as it has been India’s only listed commodity bourse on the CME.
CAMS Shares Rise After It Receives RBI Nod For A Payment Aggregator License
Shares of CAMS Ltd. rose 0.66% to Rs 2,282 a piece in trade after it received a nod from the Reserve Bank of India to secure a license as a 'Payment Aggregator'.
Source: Bloomberg, Exchange filing
Siemens Shares Jump As Analysts Highlight Strong Order Print; Q3 Beat
Shares of Siemens Ltd. rose 2.69%, as of 11:08 a.m., to Rs 3,209.1 apiece in trade on Wednesday as the third-qarter profit beat estimates and order inflow and execution were on track.
Nomura maintains a 'neutral' rating with a target price of Rs 3,008, whereas, Kotak Institutional Equities maintains 'sell' with a 'Fair Value' of Rs 2,900.
Company's December quarter revenue was up 17.5% at Rs 4,015.1 crore compared with Rs 3,421.3 crore, in the same period a year back, the company said in the filing. It nearly met the consensus analyst estimates pooled by Bloomberg, which stood at Rs 4,059.8 crore.
It posted an 85% rise in consolidated net profit at Rs 462.7 crore for December quarter on the back of higher revenue, beating analyst estimates of Rs 338.8 crore. The profit stood at Rs 247.7 crore in the same quarter of the previous fiscal.
Also, company's board appointed Juergen Wagner as an Additional Director.
Siemens Q3 Earnings (Consolidated, YoY)
Revenue from operations rose 17.4% to Rs 4,015.1 crore vs Rs 3,421.3 crore. [Bloomberg estimates: Rs 4,059.8 crore]
Net profit up 86.7% at Rs 462.7 crore vs Rs 247.7 crore. [Bloomberg estimates: Rs 338.8 crore]
Ebitda up 95% at Rs 700.9 crore vs Rs 359.7 crore. [Bloomberg estimates: Rs 449.7 crore]
Ebitda margin stood at 17.5% vs 10.5%The stock rose as much as 3.04% intraday, rising the most since Feb. 3. Total traded volume stood at 4.8 times its 30-day average.
The relative strength index was at 71.3.
Out of the 31 analysts tracking the company, 17 maintain a 'buy' rating, nine recommend a 'hold' and five suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an downside of 2.5% over the next 12 months.
Eicher Motor Advances In Trade
Eicher Motors Ltd.’s shares jumped in trade on Wednesday as a strong performance in the third-quarter despite a downturn in the industry led to hopes of a brighter future for the company with limited risks visible on the horizon.
Shares of Eicher Motors Ltd rose 2.74% to Rs 3,262.5 apiece in trade on Wednesday.
The stock rosee as much as 3.84% intraday, gaining the most in 6 weeks since Dec. 29, 2022.
Total traded volume stood at 5.1 times its 30-day average. The relative strength index was at 52.1.
Out of the 45 analysts tracking the stock, 31 maintain a 'buy' rating, nine 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 15% over the next 12 months.
Analyst Views
Nomura upgrades the stock to 'neutral' as current valuation is in fair value zone.
Jefferies retains 'buy' with a price target of Rs 4,250 per share, a potential upside of 34%.
Motilal Oswal maintains buy with target price of Rs 3,625, implying a potential profit of 14%.
Nirmal Bang upgrades to buy from accumulate earlier with a target price of Rs 3,786, implying an upside of 19%
Source: Bloomberg, Brokerage Notes
GMDC Surges As Profit Jumps 78% YoY
Shares of GMDC Ltd. rose 9.78% to Rs 142 apiece in trade on Wednesday.
Gujarat Mineral Development Corp Ltd. on Tuesday reported a 77.6% rise in consolidated profit at Rs 266.11 crore for the quarter ended December 31, 2022. It posted a consolidated profit of Rs 149.81 crore in the year-ago period, GMDC said in a filing to BSE.
The stock rosee as much as 11.67% intraday, gaining the most in 11 months since March 3, 2022.
Total traded volume stood at 11.6 times its 30-day average. The relative strength index was at 47.5.
Out of the 19 analysts tracking the stock, 10 maintain a 'buy' rating, seven recommend a 'hold' and two suggest to 'sell' the stock.
Source: Bloomberg, Exchange filing
Glenmark Pharma Falls In Trade
Shares of Glenmarrk Pharma Ltd. fell 1.45% to Rs 423.4 apiece in trade on Wednesday.
The stock fell declined as much as 3.31% intraday, falling the most since Jan. 27.
Total traded volume stood at 3.3 times its 30-day average. The relative strength index was at 58.
Out of the 19 analysts tracking the stock, 10 maintain a 'buy' rating, seven recommend a 'hold' and two suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 16.5% over the next 12 months.
Source: Bloomberg
Bharat Forge Shares Fall Most In A Year As Profit Slumps
Shares of Bharat Forge Ltd. fell 5.98%, as of 9:47 a.m., to Rs 821.25 apiece in trade on Wednesday.
The company's consolidated net profit fell 96% to Rs 78.7 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 222 crore consensus estimate of analysts tracked by Bloomberg.
Other Q3 Highlights (YoY)
Revenue rose 40% to Rs 3,353.4 crore, against estimates of Rs 3,091.5 crore.
Ebitda fell 6% to Rs 469.3 crore, compared with the forecast of Rs 511.6 crore.
Ebitda margin stood at 14%, as against 21% last year and an estimate of 16.5%.
The stock fell declined as much as 7.08% intraday.
Total traded volume stood at 14.4 times its 30-day average. The relative strength index was at 34.4.
Out of the 31 analysts tracking the stock, 21 maintain a 'buy' rating, five 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 13% over the next 12 months.
Source: Bloomberg, Exchange filing
Adani Group Company Stocks Trade Mixed
Sensex, Nifty Open Lower Following Weak Asia Trade
Indian equity benchmarks declined at open on Wednesday following the weak global trade.
Asian stocks and the U.S. equity futures fell on Wednesday as investors weighed hot American inflation data and mixed commentary from central bankers on the outlook for interest rates.
In the pre-open, S&P BSE Sensex was down 42.21 points or 0.07% at 60,990.05 while the NSE Nifty 50 was 33 points or 0.19% higher at 17,896.60.
Eicher Motors Ltd., Adani Enterprises Ltd., Grasim Industries Ltd., HDFC Life Insurance Co., and Reliance Industries Ltd. were the top gainers in the gauge.
Whereas, Apollo Hospitals Enterprise Ltd., Larsen and Toubro Ltd., Hindustan Unilever Ltd., TCS Ltd., and Britannia Industries Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were trading marginally higher; S&P BSE MidCap was up 0.04%, whereas S&P BSE SmallCap was higher by 0.02%.
Ten out of the 19 sectors compiled by BSE declined, while nine advanced in trade.
The market breadth was split between the buyers and sellers. About 1,249 stocks rose, 1,173 declined, and 131 remained unchanged on the BSE.
Sensex, Nifty Decline Marginally In Pre-Open Trade
In the pre-open, S&P BSE Sensex was down 42.21 points or 0.07% at 60,990.05 while the NSE Nifty 50 was 33 points or 0.19% higher at 17,896.60.
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 15 paise to 82.91 at open against the greenback on Wednesday. It closed 82.76 on Tuesday.
Source: Bloomberg
Yield On The 10-Year Bond Flat
The yield on the 10-year bond opened flat at 7.38% on Wednesday. It closed at 7.37% on Tuesday.
Source: Bloomberg
Global Cues May Hamper Upward Momentum In Indices: Trade Setup
Global Cues
U.S. Dollar Index at 103.27
U.S. 10-year bond yield at 3.74%
Brent crude down 0.21% to $85.40 per barrel
Nymex crude at $78.87per barrel
SGX Nifty down 0.30% to 17,874.5 as of 8:05 a.m.
Bitcoin down 0.61% to $22,117.29
Block Deal
Bajaj Auto: Jaya Hind Industries bought 66,000 shares (0.02%), Abhyakumar Navalmal Firodia sold 66,000 shares (0.02%) at Rs 3,905 apiece.
Bulk Deals
Phoenix Mills: Nomura India Investment Fund Mother Fund bought 12.39 lakh shares (0.69%) at Rs 1,310 apiece.
Safari Industries (India): HDFC Mutual Fund bought 2.5 lakh shares (1.05%), Investcorp Private Equity Fund II sold 4.5 lakh shares (1.89%) at Rs 1,860 apiece.
Ganesh Benzoplast: Malabar India Fund bought 17.67 lakh shares (2.71%) at Rs 149.69 apiece.
Earnings Fineprint
Vodafone Idea Q3 FY23 (Consolidated, QoQ)
Revenues up 0.06% at Rs 10,620.6 crore
Ebitda up 2.03% at Rs 4,180.8 crore
Ebitda margin at 39.37% vs 38.6%
Net loss widens to Rs 7,990 crore from Rs 7,595.5 crore
ARPU up 3.1% at Rs 135
ONGC Q3 FY23 (Consolidated, YoY)
Revenues up 16.2% at Rs 1,69,212.6 crore
Ebitda up 2.4% at Rs 21,870.8 crore
Ebitda margin at 12.9% vs 14.7%
Net profit up 5.1% at Rs 11,488.9 crore
The company declared second interim dividend of Rs 4 per share.
Biocon Q3 FY23 (Consolidated, YoY)
Revenue up 35% at Rs 2,941 crore (Bloomberg estimate: Rs 2,752 crore)
EBITDA up 30% at Rs 634 crore (Bloomberg estimate: Rs 642 crore)
Ebitda margin at 21.6% vs 22.5% (Bloomberg estimate: 23.3%)
Net loss of Rs 42 crore vs net profit of Rs 187 crore (Bloomberg estimate of net profit: Rs 233 crore)
Apollo Hospitals Q3 FY23 (Consolidated, YoY)
Revenue up 17% at Rs 4,264 crore (Bloomberg estimate: Rs 4,209 crore)
Ebitda down 14% at Rs 505 crore (Bloomberg estimate: Rs 540 crore)
Ebitda margin at 11.9% vs 16.1% (Bloomberg estimate: 12.8%)
Net profit down 33% at Rs 153 crore (Bloomberg estimate: Rs 211 crore)
Torrent Power Q3 FY23 (Consolidated, YoY)
Revenue up 71% at Rs 6,442.8 crore (Bloomberg estimate: Rs 6,285.6 crore)
Ebitda up 54.58% at Rs 1,443.7 crore (Bloomberg estimate: Rs 1,111.6 crore)
Ebitda margin at 22.4% vs 24.8% (Bloomberg estimate: 17.7%)
Net profit up 86% at Rs 684.6 crore (Bloomberg estimate: Rs 468.8 crore)
The company announced interim dividend of Rs 22 per share.
Bata India Q3 FY23 (Consolidated, YoY)
Revenue up 7% at Rs 900.2 crore (Bloomberg estimate: Rs 965.3 crore)
Ebitda up 21% at Rs 204.1 crore (Bloomberg estimate: Rs 243.2 crore)
Ebitda margin at 22.67% vs 20% (Bloomberg estimate: 25.2%)
Net profit up 15% at Rs 83.1 crore (Bloomberg estimate: Rs 116.5 crore)
PI Industries Q3 FY23 (Consolidated, YoY)
Revenue up 18.9% at Rs 1,613.2 crore (Bloomberg estimate: Rs 1667.3 crore)
Ebitda up 40% at Rs 415.1 crore (Bloomberg estimate: Rs 390.1 crore)
Ebitda margin at 25.73% vs 21.86% (Bloomberg estimate: 23.4%)
Net profit up 58 % at Rs 351.8 crore (Bloomberg estimate: Rs 291.5 crore)
The company declared an interim dividend of Rs 4.5 per share.
Stocks To Watch
LT Foods: The Competition Commission of India approved the acquisition of certain equity share capital of LT Foods Ltd. by Riyadh-based SALIC International Investment Corp.
Reliance Industries: The Ahmedabad bench of NCLT approved the resolution plan jointly submitted by Reliance Industries and Assets Care & Reconstruction Enterprise for Sintex Industries.
Adani Enterprises: The company repaid commercial paper worth Rs 15 crore, due on Feb. 14, in full.
Vodafone Idea: The company appointed Murthy GVAS as interim chief financial officer, effective Feb. 15.
Biocon: The company has entered into an agreement with Kotak Strategic Situations Fund for a structured funding up to Rs 1,200 crore.
SGX Nifty Signals Lower Open For Indian Stocks
Asian markets declined after Wall Street ended flat as investors balanced hot inflation data with Federal Reserve commentary suggesting U.S. interest rates may soon peak.
The U.S. futures edged lower in early Asian trading. The S&P 500 ended Tuesday little changed while the tech-heavy Nasdaq 100, which is more sensitive to higher interest rates, rose 0.7%.
The yield on 10-year Treasury notes advanced to 3.74%. Crude oil prices were hovering around $85 per barrel, while Bitcoin was trading below the $22,000 level.
At 8:05 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was down 0.30% at 17,874.5.
Domestic benchmark indices held on to steady gains and advanced in trade on Tuesday after a day of declines on a rise in consumer price inflation.
The rupee further weakened against a stronger U.S. dollar, declining 3 paisa after losing its strong opening earlier in the day.
Overseas investors in Indian equities remained net buyers for the third day in a row on Tuesday. Foreign portfolio investors mopped up equities worth Rs 1,305.1 crore, while domestic institutional investors also bought stocks worth Rs 204.8 crore. They previously snapped a 13-day buying streak on Feb. 9.
