Stock Market Today: Sensex, Nifty Extend Declines For Third-Straight Session; FPIs Remain Net Sellers
The S&P BSE Sensex closed down 874 points or 1.45% at 59,330.90 while the NSE Nifty 50 was 288 points or 1.61% lower at 17,604.35.
KEY HIGHLIGHTS
FPIs Remain Net Sellers
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, according to data from the National Stock Exchange.
On the other hand, domestic institutional investors mopped up stocks worth Rs 4,252.33 for the fourth 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 29,232.29 crore of Indian stocks so far in 2023.
Yield On The 10-Year Rises
The yield on the 10-year bond rose 4 bps at 7.39% on Friday. It ended at 7.35% on Wednesday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened by 7 paise to 81.52 at open on Friday. It closed at 81.59 on Wednesday.
Source: Bloomberg
Closing Bell
The Indian benchmark indices declined for third consecutive session in trade on Friday. On a weekly basis, the indices snapped their two week gaining streak.
Asian stocks advanced for the sixth-straight day and the European markets were trading marginally higher after a mixed opening.
U.S. equities ended higher on Thursday after a rally in technology shares helped investors shake off mixed economic data, but recession fears remained.
The S&P BSE Sensex closed down 874 points or 1.45% at 59,330.90 while the NSE Nifty 50 was 288 points or 1.61% lower at 17,604.35.
Tata Motors Ltd., Bajaj Auto Ltd., Dr. Reddy's Laboratories Ltd., ITC Ltd. and Divi's Laboratories Ltd. were the top gainers in the gauge.
Whereas, Adani Enterprises Ltd., Adani Ports and SEZ Ltd., State Bank of India, ICICI Bank Ltd., IndusInd Bank Ltd., ONGC Ltd., BPCL Ltd., Kotak Mahindra Bank Ltd., Axis Bank Ltd. and Hindalco Industries Ltd. and were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices underperformed their larger peers and traded lower; S&P BSE MidCap was down 1.29%, whereas S&P BSE SmallCap was lower by 1.89%.
Seventeen out of the 20 sectors compiled by BSE declined, while three advanced, namely; S&P BSE Fast Moving Consumer Goods, S&P BSE Healthcare and S&P BSE Auto.
The market breadth was skewed in favour of the bears. About 905 rose, 2,648 declined, 105 remained unchanged on the BSE.
After rising for two consecutive weeks, the headline indices snapped the advance and fell in the fourth week of 2023.
Sensex was down 2.13% and Nifty was lower by 2.35% in this week. The indices rose by 0.60% and 0.40% respectively last week.
Sectorally, Nifty Auto, FMCG and IT indices gained this week.
On the other hand, Nifty PSU Bank, Metal, Bank and Realty indices fell more than 4% in trade.
NHAI Declares Dilip Buildcon As L1 Bidder For Construction Of Highways Worth Rs 1,373.6-Crore From Bengaluru To Vijaywada
First highway is a six-Lane access conrolled greenfield highway from Kodur to Vanavolu, which will cost Rs 599.50 crore.
The second highway from Odulapalle to Nallacheruvupalli will cost Rs 774.10 crore.
The completion period for both the highways are 24 months in hybrid annuity mode.
Source: Exchange filing
TTK Prestige Declines In Trade
Shares of TTK Prestige Ltd. fell 6.79% to Rs 727.9 apiece in trade on Friday.
The stock declined as much as 11.13% intraday as it hit a 52-week low of Rs 694.
Total traded volume stood at 13.4 times its 30-day average.
Out of the 10 analysts tracking the company, eight maintain a 'buy' rating, one recommends 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 42.2% over the next 12 months.
Source: Bloomberg
TRAI Subscription Data For November
The total number of wireless subscribers shrank marginally in November 2022.
Total wireless subscribers fell 0.05% over the previous month to 1,143.04 million as on Nov. 30.
The number of mobile phone users in urban areas rose 0.24% but fell 0.39% in the rural parts.
Reliance Jio gained the highest number of wireless subscribers (1.42 million), followed by Airtel (1.05 million). Vodafone Idea lost 1.8 million users.
Total broadband users increased 0.47% over the previous month to 825.38 million as on Nov. 30, 2022.
Top five service providers constituted 98.40% market share in the broadband space.
With a user base of 7.38 million, Reliance Jio is the biggest wired broadband service provider, followed by Airtel (5.56 million), BSNL (4.02 million) and ACT Fibernet (2.14 million) and Hathway (1.13 million.)
Source: TRAI
Shree Renuka Sugars Declines In Trade
Shares of Shree Renuka Sugars Ltd. fell 6.9% to Rs 49.25 apiece in trade on Friday.
The stock declined as much as 9.83% intraday, the most in over seven months since June 20, 2022.
Total traded volume stood at 1.2 times its 30-day average.
The one analyst tracking the company, maintains a 'buy' rating on the stock.
Source: Bloomberg
European Markets Open Mixed
Sterlite Technologies Q3 Earnings (QoQ)
Revenue up 12% at Rs 1,882 crore.
Ebitda up 8% at Rs 252 crore.
Ebitda margin at 13.39% vs 13.90%.
Profit after tax up 17% at Rs 77 crore.
Robust order book of Rs 12,054 crore in Q3.
Source: Exchange filing
Stocks Contributing To Sensex's Fall
Sensex, Nifty Extend Falls Below 14-Week Low
Sensex Drops Below 59,100 Level For First Time Since Oct. 20
Nifty Falls Below 17,550 For First Time Since Oct. 20
Source: Bloomberg
Samvardhana Motherson Acquires 51% Stake In Saddles For Rs 207-Crore
Samvardhana Motherson also has the right to appoint the majority of directors on the board of Saddles.
Saddles FY22 revenue stands at Rs 320 crore.
Saddles International Automotive and Aviation Interiors is engaged in manufacturing of premium upholstery for passenger vehicles.
Transaction to close within 3-4 months.
Source: Exchange filing
Midday Market Update
The Indian benchmark indices opened marginally lower and extended declines with pressure across energy, banking and financial sectors clubbed with the weakness in Adani group stocks.
On the other hand, the Asian stocks advanced for a sixth-straight day and the Europe equity futures also climbed.
U.S. equities ended higher on Thursday after a rally in technology shares helped investors shake off mixed economic data, but recession fears remained.
As of 12:18 pm, the S&P BSE Sensex was down 910 points or 1.51% at 59.295.29 while the NSE Nifty 50 was 277 points or 1.55% lower at 17,614.65.
Bajaj Auto Ltd., Tata Motors Ltd., Dr. Reddy's Laboratories Ltd., ITC Ltd. and Cipla Ltd. were the top gainers in the gauge.
Whereas, Adani Ports and SEZ Ltd., Adani Enterprises Ltd., State Bank of India, BPCL Ltd., ICICI Bank Ltd., Axis Bank Ltd., ONGC Ltd., Coal India Ltd., Reliance Industries Ltd. and Asian Paints Ltd. and were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices mirrored their larger peers and traded lower; S&P BSE MidCap was down 1.59%, whereas S&P BSE SmallCap was lower by 1.91%.
Eighteen out of the 19 sectors compiled by BSE declined, while two advanced, namely; S&P BSE Healthcare and S&P BSE Auto.
The market breadth was skewed in favour of the bears. About 755 rose, 2,619 declined, 117 remained unchanged on the BSE.
Energy Stocks Decline In Trade
Shares of oil and gas companies declined in trade on Friday.
The NSE Nifty Oil & Gas Index was down 5.82%. Thirteen out of the fifteen constituents compiled by the gauge advanced. Only Indraprastha Gas Ltd. and Aegis Logistics Ltd. advanced in the gauge.
Adani Total Gas Ltd., HPCL Ltd., BPCL Ltd., ONGC Ltd., Reliance Industries Ltd. and Gujarat Gas Ltd declined more than 2% lower in trade.
Source: NSE
Jindal Saw Advances In Trade
Shares of Jindal Saw Ltd. jumped 5.67% to Rs 116.4 apiece in trade on Friday.
The company's net income rose 69.62% at Rs 2,144 crore in the third-quarter of the current fiscal. Whereas, the revenue also rose 48.7% to Rs 5,157.9 crore in the same period.
The stock gained as much as 10.49% intraday, the most in over seven months since May 20, 2022.
Total traded volume stood at 5.3 times its 30-day average. The two 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 18.2% over the next 12 months.
Source: Bloomberg, Exchange filing
Banking Stocks Fall
Shares of banking companies declined in trade on Friday.
The NSE Nifty Bank Index was down 2.36%. All twelve constituents compiled by the gauge advanced.
ICICI Bank Ltd., Punjab National Bank, Bank of Baroda, State Bank of India, Axis Bank Ltd. and HDFC Bank Ltd declined more than 2% lower in trade.
Source: NSE
Amara Raja Batteries Gains Most In 11 Weeks As Q3 Profit Beats Estimates
Shares of Amara Raja Batteries Ltd. rose 2.26% as of 10:52 am, to Rs 577.55 apiece in trade on Friday.
The third-quarter net profit beat analyst estimates as per the Bloomberg data. The net profit was up 52.7% to Rs 221.88 crore as compared to the same quarter of the previous financial year. The consensus analyst estimate pegged the net profit at Rs 195.6 crore.
Company's revenue was lower than analyst expectation, however 11.49% higher annually at Rs 2,637.76 crore in the third-quarter of the ongoing fiscal.
Additionally, the earnings before interest, taxes, depreciation and amortisation and Ebitda margin beat the estimates pooled by the analysts on Bloomberg.
Amara Raja Batteries Q3 FY23 (Consolidated, YoY)
Revenues up 11.49% at Rs 2,637.76 crore [Bloomberg estimates: Rs 2,672.5 crore.]
Ebitda up 38.63% at Rs 394.6 crore [Bloomberg estimates: Rs 352 crore.]
Ebitda margin at 14.96% vs 12.03% [Bloomberg estimates: 13.36%]
Net profit up 52.7% at Rs 221.88 crore [Bloomberg estimates: Rs 195.6 crore.]
The stock gained as much as 5.86% intraday, rising the most in over 11 weeks since Nov. 7, 2022.
Total traded volume stood at 2.5 times its 30-day average.
Out of the 19 analysts tracking the company, nine maintain a 'buy' rating, seven 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 11% over the next 12 months.
Source: Bloomberg, Exchange filing
Dixon Technologies Hits 52-Week Low As Management Cuts FY23 Revenue Guidance
Shares of Dixon Technologies Ltd. plunged 15.79% as of 10:33 am, to Rs 2,832.5 apiece in trade on Friday.
The third-quarter revenue missed analyst estimates as per the Bloomberg data. The revenue was down 22% to Rs 2,405 as compared to the same quarter of the previous financial year.
Net profit was down 12% at Rs 51.9 crore missing analyst estimates of Rs 73.9 crore for the said quarter.
The company, during the investors' conference call after its earnings result, cut its FY23 revenue guidance. Citing lower mobile revenue, CFO, Dixon Technologies, Saurabh Gupta said, "Broadly, we should end Q4 somewhere between Rs 3000-3,500 crore of revenue, that should take us to Rs 12,400-12,700 crore of revenue in FY23, which is the broad guidance."
Furthermore, the company maintained the guidance for the next financial year, 2023-2024 at Rs 19,000 crore.
Dixon Technologies Q3 FY23 (Consolidated, YoY)
Revenue down 22% at Rs 2,405 crore (Bloomberg estimate: Rs 3,609.2 crore)
Ebitda up 10% at Rs 114 crore
Ebitda margin at 4.62% vs 3.4%
Net profit down 12% at Rs 51.9 crore (Bloomberg estimate: Rs 73.9 crore)
The stock fell as much as 20.44% intraday, hitting a 52-week low at Rs 2,676.1.
Total traded volume stood at 48.1 times its 30-day average.
Out of the 21 analysts tracking the company, 10 maintain a 'buy' rating, five 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 31.5% over the next 12 months.
Source: Bloomberg, Exchange filing
Rupee Weakens Against The U.S. Dollar
Adani Group Stocks Decline As It Responds With Point-By-Point Rebuttal Of Hindenburg Report
Adani Group today responded to the 88-questions raised by Hindenburg Research in its Jan. 24 research report on Adani Group.
We are shocked that Hindenburg Research published a report on Jan. 24, 2023, without making any attempt to contact us or verify the factual matrix.Jugeshinder Singh, Group Chief Financial Officer
The Ahmedabad-headquarter group said 21 of the questions raised were responded in the public disclosures made in its 2015 Adani Portfolio presentation. The accounting or fraud assertions investigation made by Hindenburg.
It added that as far as accounting or fraud assertions investigation made by Hindenburg, "it is devoid of facts".
However, the Adani group stocks declined in trade for the second consecutive day after the Hindenburg report was released.
Adani Total Gas declined the most out of all the group stocks, falling 15.08%, followed by Adani Transmission, Adani Green Energy and Adani Power, Adani Wilmar ACC and Ambuja Cements falling more than 4%. Lastly, Adani Enterprises and Adani Ports and SEZ decline more than 2%.
Source: Bloomberg
Opening Bell
The Indian benchmark indices open lower on Friday after a break on Republic Day. Sensex and Nifty fell more than 1% in trade on Wednesday, snapping two-day gaining streak.
Asian markets followed U.S. equities higher after a rally in technology shares helped investors shake off mixed economic data, but recession fears remained.
The S&P 500 closed at its highest level in more than a month on Thursday, reflecting a jump in tech stocks. The Nasdaq 100 rose 2% to the highest level since September, led by an 11% gain in Tesla Inc.
The S&P BSE Sensex opened down 38 points or 0.06% at 60,166.90 while the NSE Nifty 50 was 15 points or 0.08% lower at 17,877.20.
Bajaj Auto Ltd., Tata Motors Ltd., Dr. Reddy's Laboratories Ltd., Divi's Laboratories Ltd. and Cipla Ltd. were the top gainers in the gauge.
Whereas, Adani Enterprises Ltd., Adani Ports and SEZ Ltd., HDFC Ltd., HDFC Bank Ltd. and ICICI Bank Ltd. and were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were trading marginally lower; S&P BSE MidCap was down 0.07%, whereas S&P BSE SmallCap was lower by 0.04%.
Ten out of the 19 sectors compiled by BSE declined, while nine advanced in trade.
The market breadth was skewed in favour of the bulls. About 1,461 rose, 1,143 declined, 127 remained unchanged on the BSE.
U.S. FDA Exempts Glenmark Drug From Import Alert Due To Potential Shortage
The U.S. FDA enables Glenmark Pharmaceuticals Ltd. to supply Atovaquone Oral Suspension USP 750mg/5 to the U.S. market owing to drug shortage.
The Baddi (India) facility of Glenmark Pharmaceuticals Ltd. was placed import alert 66-40, halting the supply of the said drug.
Source: Exchange filing
Yield On The 10-Year Rises
The yield on the 10-year bond rose 3 bps at 7.38% on Friday. It ended at 7.35% on Wednesday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened by 11 paise to 81.48 at open on Friday. It closed at 81.59 on Wednesday.
Source: Bloomberg
Autos May Be Sector To Watch This Quarter | Trade Setup For Friday
Global Cues
U.S. Dollar Index at 101.80
U.S. 10-year bond yield at 3.51%
Brent crude up 0.22% to $87.66 per barrel
Nymex crude at $81.21 per barrel
SGX Nifty up 0.39% to 18,023 as of 8:05 a.m.
Bitcoin down 1.46% to $22,743.69
Pledge Share Details
Aurobindo Pharma: Promoter group created a pledge of 4.50 lakh shares on Jan. 21.
Ajanta Pharma: Promoter Aayush M Agrawal (trustee, Aayush Agrawal Trust) revoked a pledge of 8.20 lakh shares, promoter Ravi Agrawal (trustee, Ravi Agrawal Trust) revoked a pledge of 15.26 lakh shares, between Jan. 20-23.
Q3 Earnings Estimates
Vedanta, Bajaj Finance, Sterlite Technologies, AIA Engineerings, Godfrey Phillips India, HIL, Aarti Drugs, CMS Info Systems, Anupam Rasayan India, Aditya Birla Sun Life AMC, AGI Greenpac, Fineotex Chemical, Glenmark Life Sciences, Kalyani Steels, Manorama Industries, Paushak, Ramco Industries, Responsive Industries, Shree Digvijay Cement Co, TAJGVK Hotels & Resorts
Earnings Fineprint
Tata Motors Q3 FY23 (Consolidated, YoY):
Revenue up 23% at Rs 88,488.6 crore (Bloomberg estimate: Rs 83,426 crore)
Ebitda up 53% at Rs 10,820.2 crore (Bloomberg estimate: Rs 1,563 crore)
Ebitda margin stood at 12.2% vs 9.8% (Bloomberg estimate: 7.8%)
Net profit at Rs 2,957.7 crore vs net loss of Rs 1,516.14 crore (Bloomberg estimate: Rs 147.3 crore)
Dr Reddy's Laboratories Q3 FY23 (Consolidated, YoY)
Revenue up 27% at Rs 6,790 crore (Bloomberg estimate: Rs 6,096 crore)
Ebitda up 60% at Rs 1,952 crore (Bloomberg estimate: Rs 1,547 crore)
Ebitda margin at 28.7% vs 22.9% (Bloomberg estimate: 25.4%)
Net profit up 75% at Rs 1,244 crore (Bloomberg estimate: Rs 908 crore)
Torrent Pharmaceuticals Q3 FY23 (Consolidated, YoY)
Revenue up 18% at Rs 2,491 crore (Bloomberg estimate: Rs 2,420 crore)
Ebitda up 35% at Rs 724 crore (Bloomberg estimate: Rs 717 crore)
Ebitda margin at 29.1% vs 25.5% (Bloomberg estimate: 29.6%)
Net profit up 14% at Rs 283 crore (Bloomberg estimate: Rs 327 crore)
Ceat Q3 FY23 (Consolidated, YoY)
Revenues up 13.01% at Rs 2,727.20 crore (Bloomberg estimate: Rs 3,017.60 crore)
Ebitda up 13.1% at Rs 181.14 crore (Bloomberg estimate: Rs 296.63 crore)
Ebitda margin flat at 6.64% (Bloomberg estimate: 9.8%)
Net profit at Rs 35.39 crore vs net loss of Rs 20.01 crore (Bloomberg estimate: Rs 93.27 crore)
Amara Raja Batteries Q3 FY23 (Consolidated, YoY)
Revenues up 11.49% at Rs 2,637.76 crore
Ebitda up 38.63% at Rs 394.6 crore
Ebitda margin at 14.96% vs 12.03%
Net profit up 52.7% at Rs 221.88 crore
Patanjali Foods Q3 FY23 (Standalone, YoY)
Revenues up 26.21% at Rs 7,926.64 crore
Ebitda down 12.4% at Rs 368.04 crore
Ebitda margin at 4.64% vs 6.69%
Net profit up 15% at Rs 269.19 crore
Tata Steel Long Products Q3 FY23 (Standalone, YoY)
Revenues up 6.75% at Rs 1,790.41 crore
Ebitda down 73.17% at Rs 67.41 crore
Ebitda margin at 3.77% vs 14.98%
Net loss of Rs 236.93 crore vs net profit of Rs 103.88 crore
Tata Elxsi Q3 FY23 (QoQ)
Revenue up 7.15% at Rs 817.74 crore
Ebitda up 8.96% at Rs 246.86 crore
Ebitda margin at 30.19% vs 29.69%
Net profit up 11.71% at Rs 194.68 crore
DLF Q3 FY23 (Consolidated, YoY)
Revenues down 3.54% at Rs 1,494.80 crore
Ebitda down 8.46% at Rs 477.2 crore
Ebitda margin at 31.92% vs 33.64%
Net profit up 36.82% at Rs 519.21 crore
Tata Motors Q3 Results Review - Strong Performance In JLR, Commercial Vehicles: Motilal Oswal
Stocks To Watch
Adani Enterprises: The company raised Rs 5,984.9 crore from allocating 1.83 crore equity shares to 33 anchor investors under the anchor portion of its Rs 20,000-crore FPO at Rs 3,276 per share.
Future Retail: Kishore Biyani, founder of Future Group, resigned from the position of executive chairman and director of the company.
Happiest Minds Technologies: The company acquired 100% stake in Sri Mookambika Infosolutions for a consideration of Rs 111 crore.
SJVN: The company sold its entire shareholding in Bhutanese joint venture Kholongchhu Hydro Energy as per directions from India’s Ministry of Power, for Rs 354.7 crore.
ONGC: The company appointed chairman Arun Kumar Singh as the chief executive officer.
LTIMindtree: The company partnered with Microsoft and Duck Creek Technologies to build a solution that will enable insurers to migrate their on-premises core systems to the cloud quickly and efficiently.
SGX Nifty Suggests Higher Open For Indian Stocks
India’s equity markets will reopen after a break on Republic Day, while mainland China remains closed for the Lunar New Year holiday.
On Friday, Asian markets followed U.S. equities higher after a rally in technology shares helped investors shake off mixed economic data, but recession fears remained.
The S&P 500 closed at its highest level in more than a month, reflecting a jump in tech stocks. The Nasdaq 100 rose 2% to the highest level since September, led by an 11% gain for Tesla Inc. as Elon Musk teased the potential for the carmaker to produce 2 million vehicles this year.
At 8:05 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.39% to 18,023.
Crude oil was trading above $87 per barrel, while Bitcoin was trading around the $22,000 level.
Domestic benchmark indices closed lower on Wednesday as losses in banks and financial stocks dragged the gauges. The Indian markets were closed on Thursday on account of the Republic Day celebration.
Rupee snapped its two-day decline against the U.S. dollar, growing stronger by 13 paise.
Overseas investors remained net sellers of Indian equities for the fourth straight day on Wednesday. Foreign portfolio investors offloaded equities worth Rs 2,393.9 crore. while the domestic institutional investors mopped up stocks worth Rs 1,378.5 for the fourth day, according to NSE data.