Closing Bell
Indian equity benchmarks came off record highs weighed down by losses in Kotak Mahindra Bank, Reliance Industries, HDFC and Infosys. Meanwhile, investors also lightened their positions going into big events like Union Budget 2018-19 and last Federal Reserve policy decision with Janet Yellen at the helm.
"There are two events - Fed meet and Budget and that is why investors are lightening their positions," said AK Prabahkar, head of research at IDBI Capital Markets.
The S&P BSE Sensex fell 0.69 percent or 249.52 points to 36,033.73 and the NSE Nifty 50 Index declined 0.73 percent or 80.75 points to 11,049.65.
The mid-cap and small-cap indies also moved lower as the S&P BSE MidCap Index declined 0.67 percent and the S&P BSE SmallCap Index fell 1.3 percent.
Seventeen out of 19 sector gauges compiled by BSE ended lower weighed down by the S&P BSE Consumer Durables Index's 1.7 percent drop. On the other hand, the S&P BSE Oil & Gas Index was the top sectoral gainer, up 1.16 percent.
Countdown
Reliance Power Posts Marginal Rise In Q3 Net Profit
Shares of the Mumbai-based power generation company were trading 0.85 percent higher at Rs 47.20 after it reported October-December quarter earnings.
Key earnings highlights:
- Net profit at Rs 280 crore versus Bloomberg estimate of Rs 336 crore (YoY).
- Net profit up 1.6 percent at Rs 280 crore versus Rs 275.70 crore (YoY).
- Revenue at Rs 2,490 crore versus Bloomberg estimate of Rs 2,670 crore (YoY).
- EBITDA up 3.6 percent at Rs 1,195.8 crore versus Rs 1,154.5 crore (YoY).
- Margin at 47.9 percent versus 41.6 percent (YoY).
Indian Oil Surges Most In Over Three Months On Q3 Beat
Shares of the country's largest oil marketer rose over 5 percent, the most in over three months, to Rs 419.80, also its highest level since Nov. 2 after it beat consensus estimates compiled by Bloomberg.
Key earnings highlights:
- Revenue up 22.19 percent at Rs 1,10,667 crore versus Rs 90,567 crore (QoQ).
- Net profit up 113 percent at Rs 7,883 crore versus Rs 3,696 crore (QoQ).
- EBITDA up 80 percent at Rs 13,269 crore versus Rs 7,373 crore (QoQ).
- Other income up 68 percent to Rs 1,353 crore.
- EBITDA margin at 11.99 percent versus 8.14 percent (QoQ).
- Gross refining margin at $12.3 per barrel versus $8 per barrel (QoQ).
- Inventory gains of Rs 6,301 crore versus Rs 783 crore (QoQ).
eClerx Services Falls As Profit Misses Estimates In Q3
Shares of the Mumbai-based data analytics service provider fell as much as 3.28 percent to Rs 1,535 after its profit missed consensus estimates compiled by Bloomberg.
Key earnings highlights:
- Net profit at Rs 57.5 crore versus Bloomberg estimate of Rs 75.8 crore.
- Net profit down 33 percent at Rs 57.5 crore versus Rs 86 crore (YoY).
- Revenue at Rs 340 crore versus Bloomberg estimate of Rs 331 crore (YoY).
Graphite India Gains As Q3 Profit Surges Over 1,300% In Q3
Shares of the Kolkata-based graphite electrode maker rose as much as 2.6 percent to Rs 827.95 after it beat consensus estimates compiled by Bloomberg.
Key earnings highlights:
- Net profit at Rs 340 crore versus Bloomberg estimate of Rs 114 crore.
- Net profit up 1,354 percent at Rs 340 crore versus Rs 23.38 crore (YoY).
- Revenue at Rs 933 crore versus Rs Bloomberg estimate of Rs 525 crore.
- Revenue up 160 percent at Rs 933 crore versus Rs 358.70 crore (YoY).
- EBITDA at Rs 518 crore versus Rs 36.3 crore (YoY).
Teamlease Services' Profit Surges 100% In December Quarter
Shares of the Bangalore-based human resource and staffing firm were trading 0.8 percent higher at Rs 2,280 after it reported December quarter earnings.
Key earnings highlights:
- Net profit jumps 100 percent to Rs 18.4 crore versus Rs 9.2 crore (YoY).
- Revenue at Rs 920 crore versus Rs 810 crore (YoY).
SBI Life Insurance Falls Post December Quarter Earnings
Shares of the Mumbai-based life insurance service provider fell 1.7 percent to Rs 670 after it reported third quarter earnings.
Key earnings highlights (Nine month ended FY18 versus Nine month ended FY17):
- Value of new business (VNB) stood at Rs 930 crore.
- VNB margins at 16 percent
- Annualised premium equivalent up by 39.3 percent at Rs 5,850 crore versus Rs 4,200 crore.
- Market share increased to 23 percent versus 21.3 percent.
- Profit after tax up 24.3 percent at Rs 770 crore versus Rs 620 crore.
- 13th month persistency stood at 81.5 percent versus 79.8 percent.
- 61st month persistency stood at 59.5 percent versus 69.6 percent.
- Solvency ratio stood at 2.06 times versus 2.09 times.
Subros Gains Post December Quarter Earnings
Shares of the Delhi-based automobile air conditioning systems maker rose as much as 4.18 percent to Rs 374 after it reported October-December quarter earnings.
Key earnings highlights:
- Net profit at Rs 16.4 crore versus Rs 83 lakh (YoY).
- Revenue at Rs 447.56 crore versus Rs 366.39 crore (YoY).
Piramal Enterprises Gains Post Q3 Earnings
Shares of the Mumbai-based drug maker rose as much as 1 percent to Rs 2,825 after it reported October-December quarter earnings.
Key earnings highlights:
- Net profit at Rs 490 crore versus Rs 404 crore (YoY).
- Revenue at Rs 2,860 crore versus Rs 2,342 crore (YoY).
- Total costs at Rs 2,270 crore.
Power Lunch
Jain Irrigation's Net Profit Rises 986% In December Quarter
Shares of the Jalgaon-based irrigation system maker fell 1.5 percent to Rs 145.10 after it reported December quarter earnings.
Key earnings highlights:
- Q3 consolidated other income at Rs 38.2 crore versus Rs 4.1 crore (YoY)
- Q3 consolidated revenue up 30.8 percent at Rs 1889.6 crore versus Rs 1445 crore (YoY)
- Q3 consolidated profit up 986 percent at Rs 66.9 crore versus Rs 6.1 crore (YoY)
- Q3 consolidated EBITDA up 17.8 percent at Rs 222 crore versus Rs 188.5 crore (YoY)
- Q3 consolidated margin at 11.8 percent versus 13 percent (YoY)
ITD Cementation At Day’s Low On Fixing QIP Issue Price
Shares of the Mumbai-based construction company fell 3.33 percent to Rs 203.25 after it fixed QIP issue price of Rs 202.25 which was at a discount of up to 5 percent to the floor price of Rs 213.20.
Suven Life Sciences Pares Losses As Q3 Net Beats Estimates
Shares of the Hyderabad-based drug maker came off day's low after it beat consensus Bloomberg estimates in October-December quarter.
Key earnings highlights:
- Net profit at Rs 34.6 crore versus Bloomberg estimate of Rs 28.4 crore.
- Net profit up 42.5 percent at Rs 34.6 crore versus Rs 24.2 crore (YoY).
- Revenue up 41.6 percent at Rs 163.6 crore versus Rs 115.5 crore (YoY).
- EBITDA up 40 percent at Rs 51.3 crore versus Rs 36.6 crore (YoY).
#Ask BQ
TVS Motor Company Falls As Profit Misses Estimates In Q3
Shares of the Chennai-based two-wheeler maker fell as much as 3.5 percent, the most since Jan. 8, to Rs 694.05 after its net profit missed consensus Bloomberg estimates in October-December quarter.
Key earnings highlights:
- Net profit at Rs 154 crore versus Bloomberg estimate Of Rs 168 crore
- Net profit up 16 percent at Rs 154 crore versus Rs 133 crore (YoY)
- Revenue at Rs 3,685 crore versus Bloomberg estimate of Rs 3,580 crore
- Revenue 23 percent at Rs 3,685 crore versus Rs 2,983 crore (YoY)
- EBITDA at Rs 286.79 crore versus Bloomberg estimate of Rs 283 crore
- Margin at 7.8 percent versus Bloomberg estimate of 7.9 percent
- EBITDA up 31.3 percent at Rs 286.79 crore versus Rs 218.4 crore (YoY)
Hot Money
Market Check
- Indian equity benchmarks held on to losses led by losses in Infosys, HDFC, Kotak Mahindra Bank and Larsen & Toubro.
- The S&P BSE Sensex fell 0.55 percent or 203 points to 36,081 and the NSE Nifty 50 Index declined 0.65 percent to 73 points to 11,056.
- The mid-cap and small-cap indices were in-line with the benchmarks. The S&P BSE MidCap Index fell 0.3 percent and the S&P BSE SmallCap Index tumbled 0.8 percent.
- Fourteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Information Technology Index's 1 percent drop. On the other hand, the S&P BSE Telecom Index was the top sectoral gainer, up 0.9 percent.
Top Nifty Gainers
- Bharti Airtel up 2.8 percent
- BPCL up 2 percent
- HPCL up 1.6 percent
- GAIL India up 1.3 percent
- Indian Oil up 0.9 percent
Top Nifty Losers
- Eicher Motors down 2.5 percent
- Asian Paints down 2 percent
- Bharti Infratel down 2 percent
- Kotak Mahindra Bank down 1.8 percent
- Ambuja Cements down 1.8 percent
Opto Circuits Surges 5% Post Q3 Earnings
Shares of the Bangalore-based medical device maker rose as much as 4.9 percent, the most in over a month, to Rs 10.65 after it reported December quarter earnings.
Key earnings highlights:
- Revenue at Rs 58.68 crore versus Rs 66.05 crore (YoY).
- Net profit at Rs 8.38 crore versus loss of Rs 35.13 crore (YoY).
Trend Spotting
MOIL Gains On Share Buyback Proposal
Shares of the Nagpur-based mining company rose as much as 4.5 percent to Rs 249.70 after the company informed stock exchanges that its board of directors will meet on Feb. 5 to consider share buyback proposal.
Block Deal Alerts
- DLF has 18 lakh shares change hands in a block deal. Stock up 0.1 percent at Rs 254.30.
- Yes Bank has 35 lakh shares change hands in a block deal. Stock down 0.49 percent at Rs 356.25.
Buyers and sellers were not immediately known
Source: Bloomberg
Reliance Communications Extends Gains Post Block Deals
Shares of Reliance Communications extended gains and surged 18 percent to Rs 32.05 after 24 lakh shares changed hands in multiple block deals.
Buyers and sellers were not immediately known
Source: Bloomberg
Ester Industries Surges On Agreement With Shaw Industries Group
Shares of the Haryana-based maker of polyester films, engineering plastics and specialty polymers were locked in 10 percent upper circuit at Rs 66.70 after it entered into a long-term agreement with Shaw Industries, USA to supply circa 2,500 tonnes per annum of its Stain Resistant Master Batch to Shaw Industries, Ester Industries said in a stock exchange filing.
Reliance Communications Surges As Loss Narrows Sharply In Q3
Shares of the Anil Ambani-led telecom firm rose as much as 14.89 percent, the most in a month, to Rs 31.25 after its loss narrowed sharply in October-December quarter.
Key earnings highlights:
- Revenue up 1 percent at Rs 1,144 crore.
- Net loss of Rs 130 crore versus net loss of Rs 2,712 crore.
- Ebitda up 0.5 percent at Rs 220 crore from Rs 219 crore,
- Margin at 19.2 percent from 19.3 percent.
The F&O Show
Amber Enterprises Makes Strong Debut On Bourses
Shares of the Gurugram-based maker of air-conditioners made a stellar debut on stock exchanges. The stock opened 37.36 percent higher at Rs 1,180 against its issue price of Rs 859.
Amber Enterprises' Rs 600 crore IPO saw huge demand for its shares as its issue was subscribed 165.31 times.
Arvind Virmani On Economic Survey To BloombergQuint
- Expect government to try and stick to deficit targets.
- Expect some tax reforms, especially on direct tax front.
- Judicial reform is the foundation on which markets are built.
- For the next 2-3 years, one should not expect very high returns on investments.
- Welfare reform will be a welcome move.
- PM has already hinted that there'll be no arbitrary expenditure.
- Rural, agri sector could see more expenditure outlays in Budget.
- GST Council will be encouraged to further simplify the process creating more buoyancy.
- GST Council will be encouraged to remove some of the high rates on some more items.
- Government has been credible on fiscal deficit target.
- Revenue buoyancy will come into play soon.
- GST is producing more revenues and will become more prominent on economic growth.
- Higher oil prices increase revenues.
- Much less pessimistic on higher oil prices.
- 7-7.5 percent GDP growth next year should not be a problem factoring in all the risks also.
- Advance estimate gave 6.5 percent as average GDP growth.
- Will stick to 6.75 percent GDP growth forecast.
Emami Slumps As Q3 Net Miss Estimates
Shares of the Kolkata-based beauty and healthcare products maker fell as much as 6.14 percent, the most in over seven months, to Rs 1,154.85 after it missed consensus Bloomberg estimates in October-December quarter.
Key earnings highlights:
- Revenues rose 4.22 percent to Rs 756.64 crore versus Bloomberg estimate of Rs 817 crore.
- Net profit rose 9.7 percent to Rs 149.07 crore versus Bloomberg estimate of Rs 221 crore.
- Total costs at Rs 492 crore.
KPIT Technologies Falls On Setting Rs 182 As Open Offer Price
Shares of the Pune-based applications software maker fell as much as 4 percent to Rs 200 after it fixed open offer price of Rs 182 for minority shareholders of KPIT.
KPIT and the CK Birla Group owned Birlasoft, will work closely to first merge Birlasoft into KPIT and later split the combined entity of KPIT and Birlasoft into two public companies, the company said in a press release.
Pradip Shah Of Indasia Fund Advisors To BloombergQuint
- Should be worried about oil rally and its implications on the market.
- Hope some tax anomalies are addressed in the budget.
- India continues to attract money.
- Some major uncertainties exist for India.
- Results so far have shown 18 percent profit growth.
Opening Bell
Indian equity benchmarks edged lower led by weakness in HDFC Bank, ICICI Bank, Infosys and TCS tracking weak Asian markets.
The NSE Nifty 50 Index fell 0.4 percent or 45 points to 11,089 and the S&P BSE Sensex declined 0.22 percent or 80 points to 36,204.
The mid-cap and small-cap shares were also facing selling pressure as the S&P BSE MidCap Index fell 0.3 percent and the S&P BSE SmallCap Index tumbled 0.5 percent.
Seventeen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Metal Index's 0.7 percent drop. Om the flipside, the S&P BSE Oil & Gas Index was the top sectoral gainer, up 0.4 percent.
IndianOpen
Money Market Heads Up!
Government bonds may continue to reel under pressure after finance ministry report on Monday fueled concerns the government may opt for a wider budget deficit, driving the benchmark 10-year yields to the highest since June 2016.
The yield on the 10-year benchmark, rose 14 basis points to 7.44 percent. Of course, this is on the back of a rise in U.S. and German bond yields, so it is not that Indian bond yields are rising in isolation here. With the budget due on Thursday, traders expect bonds to remain volatile with eyes on the deficit and the borrowing target for next year. On Tuesday, states will sell Rs 13,675 crore while the central government will sell Rs 11,000 crore of bonds Friday.
Meanwhile, the rupee is expected to open weaker with the implied forwards suggesting a start at around 63.6968 rupee per dollar, up from a close of 63.5875 on Monday. Support for the rupee is seen at around its 50-day moving average of 64.12 rupee per dollar.
BQ Heads Up!
All You Need To Know
Nifty Earnings To Watch
- Indian Oil Corporation
More Earnings To Watch
- Ashoka Buildcon
- AU Small Finance Bank
- Bharat Electronics
- Bharat Financial Inclusion
- Blue Dart Express
- Care Ratings
- Cholamandalam Investment And Finance
- Eclerx Services
- Engineers India
- GIC Housing Finance
- Godrej Consumer Products
- Graphite India
- Gravita India
- IFB Industries
- Jain Irrigation Systems
- Johnson Hitachi
- Lakshmi Vilas Bank
- Oberoi Realty
- Oriental Bank Of Commerce
- Piramal Enterprises
- Reliance Power
- SBI Life Insurance
- Shankara Building Products
- Somany Ceramics
- Teamlease Services
- TVS Motor
Earnings Reaction To Watch
Tech Mahindra Q3 (QoQ)
- Revenue up 2 percent at Rs 7,606 crore.
- Net profit up 13 percent at Rs 943 crore.
- EBIT up 18 percent at Rs 990 crore.
- Margin at Rs 12.7 percent from 11 percent.
Vaibhav Global Q3 (YoY)
- Revenue up 14 percent at Rs 463 crore.
- Net profit up 77 percent at Rs 45.5 crore.
- Ebitda up 85 percent at Rs 60 crore.
- Margin at 13 percent from 8 percent.
INEOS Styrolution Q3 (YoY)
- Revenue up 44 percent at Rs 453 crore.
- Net profit up 165 percent at Rs 14.3 crore.
- Ebitda up 88 percent at Rs 31 crore.
- Margin at 6.8 percent from 5.2 percent.
Security And Intelligence Services Q3 (YoY)
- Revenue up 35 percent at Rs 1,538 crore
- Net profit up 111 percent at Rs 46.5 crore.
- Ebitda up 41 percent at Rs 84.5 crore.
- Margin at 5.5 percent from 5.3 percent.
Balaji Amines Q3 (YoY)
- Revenue up 22 percent at Rs 219 crore.
- Net profit up 40 percent at Rs 28 crore.
- Ebitda up 40 percent at Rs 51 crore.
- Margin at 23.3 percent from 20.3 percent.
Mahindra Logistics Q3 (YoY)
- Revenue up 17 percent at Rs 835 crore.
- Net profit up 29 percent at Rs 14.8 crore.
- Ebitda up 45 percent at Rs 29 crore.
- Margin at 3.5 percent from 2.8 percent.
Nava Bharat Ventures Q3 (YoY)
- Revenue up 70 percent at Rs 580 crore.
- Net profit up 21 percent at Rs 22.7 crore.
- Ebitda At Rs 170.7 crore from Rs 30.5 crore.
- Margin At 29.4 percent from 8.9 percent.
Indian Metals & Ferro Alloys Q3 (YoY)
- Revenue up 7 percent at Rs 484 crore.
- Net profit up 17 percent at Rs 75 crore.
- Ebitda down 3 percent at Rs 139 crore.
- Margin at 28.7 percent from 31.6 percent.
HSIL Q3 (YoY)
- Revenue up 14.5 percent at Rs 578 crore.
- Net profit down 32 percent at Rs 15.6 crore.
- Ebitda up 3 percent at Rs 72 crore.
- Margin at 12.5 percent from 13.9 percent.
Wockhardt Q3 (YoY)
- Revenue up 1 percent at Rs 1,005 crore.
- Net loss of Rs 41 crore versus net loss of Rs 54 crore.
- EBITDA up 4600 percent at Rs 47 crore.
- Margin at 4.7 percent.
Ludlow Jute & Specialities Q3 (YoY)
- Revenue down 14 percent at Rs 73 crore.
- Net profit up 67 percent at Rs 0.5 crore.
- Ebitda up 20 percent at Rs 2.4 crore.
- Margin at 3.3 percent.
RCom Q3 (QoQ)
- Revenue up 1 percent at Rs 1,144 crore.
- Net loss of Rs 130 crore versus net loss of Rs 2,712 crore.
- Ebitda up 0.5 percent at Rs 220 crore from Rs 219 crore,
- Margin at 19.2 percent from 19.3 percent.
Apar Industries Q3 (YoY)
- Revenue up 31 percent at Rs 1499 crore.
- Net profit down 8 percent at Rs 39.5 crore.
- Ebitda down 9 percent at Rs 96 crore.
- Margin at 6.4 percent from 9.2 percent
Lakshmi Machine Works Q3 (YoY)
- Revenue down 7 percent at Rs 542 crore.
- Net profit up 10 percent at Rs 56 crore.
- Ebitda down 6 percent at Rs 64 crore.
- Margin at 11.8 percent from 11.7 percent.
Laurus Labs Q3 (YoY)
- Revenue down 5 percent at Rs 479 crore.
- Net profit down 22 percent at Rs 35 crore.
- Ebitda down 11 percent at Rs 88 crore from Rs 99 crore.
- Margin at 18.4 percent from 19.6 percent.
Supreme Petrochem Q3 (YoY)
- Revenue up 5 percent at Rs 725 crore.
- Net profit down 21 percent at Rs 28 crore.
- Ebitda down 19 percent at Rs 47.4 crore.
- Margin at 6.5 percent from 8.5 percent.
Brokerage Radar
UBS on Future Consumer
- Initiated ‘Buy’ with price target of Rs 85.
- Future Consumer at an inflection point in terms of revenue growth.
- Key beneficiary of growth spillover into private brands.
- FCL continues to grow aggressively.
- Improving product mix is helping to increase gross margin and profitability.
- Investors do not fully appreciate its ability to turn profitable in the medium term.
- Future Consumer to turn profitable in the next financial year; Expect company to post net profit of Rs 56.5 crore in the next fiscal.
- Has strongest growth; Expect revenue to compound at 49 percent over the financial years through March 2022.
- Expect Ebitda margin to expand by 550 basis points over the financial years through March 2022.
- Investors do not fully realise company's ability to turn profitable in medium term.
- Bull Case price target of Rs 110.
Elara Capital on BLS International
- Initiated ‘Buy’ with price target of Rs 315.
- BLS with its niche expertise to double market share by March 2019 from current 4 percent.
- Positives: asset-light model; high FCF yield & low on capex.
- Underpenetrated industry; Outsourcing trend catching on.
- Tourist arrivals outlook remains stable.
- Game-changers: Spain global visa, Punjab eGovernance contracts.
- Spain, Punjab deals to bolster growth.
- Expect revenue, operating income and net profit to grow at a compounded rate of 19 percent, 42 percent and 47 percent respectively over the financial years through March 2020.
Nomura on HDFC
- Maintained ‘Buy’ with a price target of Rs 2,000.
- Core NII performance supported by stable spreads.
- Core mortgage profit supported by improving growth trends and stable spreads.
- Mortgage growth bottomed out; Asset quality stable.
- Subs continue to add value for HDFC.
- Recent re-rating limits near-term upside.
Credit Suisse on HDFC
- Maintained ‘Outperform’; raised price target to Rs 2,250
- December quarter was another steady quarter; NIMs should improve in current quarter.
- Strong loan growth; Stable spreads.
- Consolidated profitability remains strong with return on equity at 21 percent.
- NPAs were flat and management not seeing any stress in affordable housing segment.
Macquarie on Emami
- Maintained ‘Outperform’ with price target of Rs 1,314.
- December quarter’s operating income was below estimates led by very weak performance of Kesh King.
- Kesh King declined on account of challenges in wholesale and rural markets.
- Pressure form Kesh Kanti (Patanjali) also leading to weakness.
- Operating margin lower than expected on higher A&P spend.
- Operating growth trajectory needs to pick-up significantly for re-rating.
Citi on Emami
- Maintained ‘Buy’ with a price target of Rs 1,270.
- December quarter’s earnings missed expectations led by subdued top-line.
- Declines in Kesh King and healthcare segments were key issues.
- Growth in December quarter has disappointed, though base quarter volumes were flattish.
- Impact of demonetisation/GST transition appears to be more prolonged.
- Recovery in rural India and efforts on sales to be crucial.
Credit Suisse on Tech Mahindra
- Maintained ‘Outperform’; raised price target to Rs 720 from Rs 700.
- Another quarter demonstrating turnaround well on track.
- Margin expansion is key positive surprise in previous quarter.
- Enterprise business is solidly poised and should benefit of cyclical tailwind as well.
- More steam left; Expect EBIT to compound at 16 percent over the financial years through March 2020.
Stocks To Watch
- Tata Power CEO Anil Sardana resigns.
- Ester Industries enters into a long term agreement with Shaw Industries to supply circa 2,500 tonnes per annum of its stain resistant Master Batch.
- HCL Tech announced a 5-year IT infrastructure services and application mgmt contract with Cadent.
- Inox Leisure to acquire 50 percent stake in Swanston Multiplex Cinemas.
- Mylan and Biocon receive positive CHMP opinion for Semglee, Biosimilar Insulin Glargine.
- Rushil Decor starts commercial production of WPC Boards at Karnataka facility.
- ICICI Bank to acquire 9.90 percent stake in FTL Technology Systems.
- JSW Steel is said to offer Rs 3,700 crore for Monnet Ispat (PTI)
- Religare Finvest to consider buyback of up to 50 crore shares.
- SpiceJet announces 20 new non-stop flights on local routes.
- MOIL to consider buy back of equity shares on Feb. 5.
- Snowman Logistics opens new temperature-controlled warehousing facility at Andhra.
- India Nippon board approves 2:1 stock split.
Trading Tweaks
- Polaris Consulting acquisition window for delisting from Jan. 30 to Feb. 5.
- Indian Power Corporation Limited (DPSC) two day offer for sale starts today
- Gayatri projects shifted to T group.
- Tata Steel and Piramal Enterprises last trading day before going ex rights basis.
- IKF Technologies circuit filter revised to 10 percent.
F&O Cues
- Nifty February futures trade at 11,137.6 premium of 7.6 points versus discount of 7 points.
- February series-Nifty open interest up 2 percent, Bank Nifty open interest flat
- India VIX ended at 17.88, up 2.1 percent.
- Max open interest for February series at 12,000 Call (open interest at 27.8 lakh) followed by 11,000 call strike (open interest at 25.3 lakh)
- Max open interest for February series at 10,500 Put, open interest at 51.4 lakh, open interest up 7 percent.
New Listings/Offerings
- Amber Enterprises lists today. Base price Rs 859 per share. Issue was subscribed 165 times.
- Galaxy Surfactants IPO continues on day 2. Issue fully subscribed on day 1.
Bulk Deals
- Piramal Enterprises: East Bridge Capital bought 25.3 lakh shares at Rs 2804; Seller Morgan Stanley.
- Bhushan Steel: EARC Trust sold 33.1 lakh shares at Rs 59.74.
- HOEC: Poddar Pigments sold 9.9 lakh shares at Rs 137.
- Rushil Decor: Aspire Emerging Fund bought 80,000 shares at Rs 978.
Newgen Software Tech
- Malabar India Fund bought 8.2 lakh shares at Rs 252.9.
- Ecap Equities sold 4.3 lakh share at Rs 258.5.
Talking Points
- Raising India’s investor taxes will backfire
- Goods moved within cities may be exempted from e-way bills
- JSW steel offers Rs 3,700 crore for insolvency-hit Monnet Ispat
- Mistry firms argue for removal of Tata Trusts’ affirmative voting rights
- Economic Survey: India’s formal sector payroll higher than estimated
- RCom’s loss narrows in Q3 on consumer business exit
- Unitech finalises deal to sell land worth Rs 400 crore in homebuyers case
- Economic Survey: Climate change may cost farmers quarter of their income
- Economic Survey: From crony socialism to stigmatised capitalism
- The anatomy of a savings and investment slowdown
- FBI’s McCabe steps down amid Trump criticism, source says
- Union Budget 2018: A fair contract for the farmer
- Iraq loosens oil shackles in premium-price quest
Good Morning
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India was little changed at 11,134 as of 7:26 a.m.
Asian equities retreated, following losses seen in the U.S. trading session, as a selloff in government bonds deepened and stock investors took profits after one of the best starts to a year in recent history. Oil slipped for a second session.
Stocks in Japan, South Korea, Hong Kong and Australia retreated after the S&P 500 Index declined from a record high. Treasuries extended a drop that’s taken yields to the highest since early 2014 as traders gear up for a hectic week of economic data and the last Federal Reserve policy decision with Janet Yellen at the helm.
Here are some important things to watch out for this week:
- Fed policy makers gather for Chair Janet Yellen’s final meeting on interest rates Wednesday before her term ends.
- President Trump delivers his first State of the Union address.
- Tech giants Microsoft Corp., Facebook Inc., SAP SE, Alibaba Group Holding Ltd., Apple Inc., Alphabet Inc. and Amazon.com Inc. will announce earnings. Large-caps McDonald’s Corp., Exxon Mobil Corp., Merck & Co. Inc., Roche Holding AG, Daimler AG, Deutsche Bank AG and Boeing Co. also report.
- U.S. employers probably added more jobs in January than a month earlier, economists forecast before the Friday report.
- Bank of England Governor Mark Carney will speak before the U.K. Parliament’s Economic Affairs Committee in London Tuesday.
- Gauges of Chinese manufacturing and services industries are due Wednesday.
- On Tuesday, data may show the euro-area economy with a solid expansion at a 0.6 percent quarterly rate.
- On Wednesday, the core euro-zone inflation report may show an uptick from a year ago to 1 percent this month.
Commodities
- West Texas Intermediate crude fell 0.3 percent to $65.35 a barrel.
- Gold was little changed at $1,339.30 an ounce.
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