KEY HIGHLIGHTS
Closing Bell
India's stock benchmarks declined the most in two weeks, dragged by losses in financials and extended the losing streak to three days, as investors turned cautious ahead of the central bank’s monetary policy announcement later this week.
This is the second worst day for the S&P BSE Sensex and NSE Nifty 50 in seven weeks since Dec. 20, 2021.
The S&P BSE Sensex fell 1.75% to 57,621.19. The 30-stock gauge lost nearly 2.3% (1,346 points) to an intraday low of 57,299.05. The NSE Nifty 50 also declined by similar magnitude to 17,213.60.
The broader indices outperformed their largers with S&P BSE MidCap slipping 1.25% and S&P BSE SmallCap shedding 0.75%. Barring S&P BSE Utilities, S&P BSE Metal and S&P BSE Power, all the other 16 sectoral indices compiled by BSE Ltd., declined with S&P BSE Finance falling 2.3%.
The market breadth was skewed in the favour of bears. About 1,417 stocks advanced, 2,095 declined and 138 remained unchanged.
Lupin, Cadila, Divi's Labs, Cipla Lead The Losses In Nifty Pharma Index
Broader Indices Outperform Their Larger Peers
Bucking The Trend
NALCO rises for the seventh day, on track for the longest winning streak in 14 months
VRL logistics rising for seventh day, on track for the longest winning streak in 14 months
DCB Bank rises for ninth day, on track for the longest winning streak in little over a decade.
Source: Bloomberg
Wipro, Infosys Lead The Losses In Nifty IT Index
NSE Nifty Bank Sheds 2%; HDFC Bank Leads Decline
Union Bank of India Q3 Net Income Misses Estimate
Union Bank of India reported net income for the third quarter that missed the average analyst estimate.
December-quarter Results (Standalone)
Net income up 50% YoY at Rs 1,085.40 crore vs Bloomberg consensus estimate of Rs 1,170 crore
Gross NPAs at 11.6% vs 12.6% QoQ
Interest income down 0.9% YoY at Rs 16,929.65 crore
Interest expense down 7% YoY at Rs 9,755.26 crore
Of the nine analysts tracking the company, four maintain 'buy', three recommend 'hold' and two suggest 'sell'. The overall consensus price of analysts tracked by Bloomberg implied an upside of 13.8%.
Source: Exchange Filing, Bloomberg
Radico Khaitan Sheds 12% In Three Days
Shares of Radico Khaitan fell 7.77% in intraday trade after analysts downgraded the stock and slashed price targets. This is the steepest intraday decline in 10 months.
The company reported 5.88% YoY decline in net profit in quarter-ended December, during market hours Thursday.
Over the past three sessions, the stock has shed 12%.
Analysts cited margin pressures as the reason for ratings downgrade.
Of the 13 analysts tracking the company, six maintain 'buy', three suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17.7%. Analysts updates in the past three days include four downgrades.
Source: Bloomberg, Brokerage notes
European Markets Open Higher
Valuations Of Indian IPOs Under Much Closer Scrunity, ICICI Securities CEO
Underperformance of recently-listed Indian companies coupled with tighter global monetary policy may force market debutants to be more realistic about valuations going forward.
This breakdown in momentum is largely centered around the valuation expectations.
While the appetite to list is strong, firms may need to be more careful in setting prices now.
Movements in the global market, the tapering, have certainly set more realistic expectations on valuations.
Going forward, valuations will be under much closer scrunity that it ever was.
Vijay Chandok, ICICI Securities Ltd.
Source: Interview with Bloomberg TV
Sensex, Nifty At Day's Low; HDFC Bank, ICICI Bank Lead Decline
Sukla Mistry Becomes The First Woman Director At Indian Oil
Mistry has taken over as director of refineries at Indian Oil today.
She will also become director on boards of Indian Oil’s unit Chennai Petroleum and JV Ratnagiri Refinery & Petrochemical.
She has previously headed Indian Oil’s Barauni and Digboi refineries.
Source: Company statement
Mid-Day Market Update: Sensex, Nifty Shed Over 1%; Minda Industries Q3 Net Income Misses Estimate
India's stock benchmarks declined, dragged by losses in banking, healthcare, fmcg and information technology stocks, amid rising oil prices and decline in global equities.
The S&P BSE Sensex shed 1.19% to 57,947.29. The 30-stock gauge fell over 800 points to intraday low of 57,805.80. This is the first time Sensex slipped below 58,000 in intraday in four sessions. The NSE Nifty 50 also declined by similar magnitude to 17,307.50. The measure fell below 17,300 in intraday trade.
The broader indices outperformed their larger peers with S&P BSE MidCap losing 0.8% and S&P BSE Smallcap falling 0.4%. Thirteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Capital Goods slipping over 2%.
The market breadth was skewed in the favour of bears. About 1,449 stocks advanced, 1,922 declined and 149 remained unchanged.
NSE Nifty PSU Bank Up Over 3%; SBI Rises To Record On Q3 Beat
Vedant Fashions IPO Subscription Status: Day 2 Live Updates
Vedant Fashions Ltd.'s IPO continued to witness muted demand on the second day of subscription. The IPO was subscribed 14% on first day.
Subscription Details: Day 1
The IPO was subscribed 17% or 0.17 times as of 12 p.m. on Feb. 7.
Institutional investors: 0.06 times.
Non-institutional investors: 0.07 times.
Retail investors: 0.27 times.
Bank Of Baroda Logs Biggest Intraday Gain In Nearly A Year
Shares of Bank of Baroda surged 10%. the most in a day in nearly a year after reporting growth in net profit in the quarter-ended December.
The lender's asset quality also improved in Q3.
The relative strength index on the stock was at 75, suggesting it may be overbought.
Source: Exchange Filing, Bloomberg
Analyst Actions: Astral, Firstsource Solutions
Astral raised to 'hold' from 'sell' at Asian Market; price target set at Rs 2,100.
Firstsource Solutions cut to 'accumulate' from 'buy' at Asian Markets; price target set at Rs 168.
Source: Bloomberg
Larsen & Toubro, Microsoft India Sign MoU To Develop Regulator Sector-Focussed Cloud Offering
Larsen & Toubro, Microsoft India sign a MoU to develop a regulated sector-focussed cloud offering.
The product is aimed at empowering customers with cloud computing and infrastructure services.
L&T and Microsoft will set up a joint governance group to define future platform designs, investments.
Source: Exchange Filing
Amazon Requests NCLAT To Stay CCI Order
Amazon requests the NCLAT to stay CCI order which suspended approval to its transaction with Future Coupons.
NCLAT will hear Amazon's request for a stay on Feburary 14.
The competition commission in December last year suspended the approval on the ground that Amazon failed to identify and notify strategic interest over Future Retail.
India Yield Curve Steady, Stocks Down
Maturities across the India sovereign yield curve were unchanged in Monday morning trading.
The 2-year yield remained unchanged at 5.099%
The 10-year yield remained unchanged at 6.879%
The 14-year yield remained unchanged at 7.272%
The 2-year-10-year yield spread was 178bps, vs previous close 177.9bps
Source: Bloomberg
IndiGo Jumps As Analysts Upgrade Stock, Raise Target
Shares of InterGlobe Aviation rose the most in a day in 14 weeks after analysts upgraded and raised target price on the stock, citing improved growth prospects
The company swung to profit in the quarter-ended December, ending a streak of quarterly losses.
Analysts pegged IndiGo to evolve out of the pandemic strong than before and benefit from the strong fundamentals in domestic aviation industry.
Source: Brokerage Note, Bloomberg
Shree Cements Q3 Operating Profit Misses Estimate On Higher Costs, Volume Miss
Stock Benchmarks Fall As HDFC Bank Leads Decline
Paytm Shares Volatile After Third-Quarter Loss Widens
Shares of One 97 Communications Ltd. fell 7.55% in intraday trade before erasing the losses and trade with over 3% gains.
One 97 Communications Q3FY22
Revenue from operations up 89% at Rs 1,456.1 crore Vs Rs 772 crore (YoY)
Net loss at Rs 778.4 crore Vs Rs 535.5 crore (YoY)
Total direct expenses up 21% at Rs 1,002.4 crore Vs Rs 825.7 crore (QoQ)
Gross Merchandise Value up 28% at Rs 2.50 lakh crore Vs Rs 1.96 lakh crore (QoQ)
Value of loans disbursed up 73% at Rs 2,181 crore Vs Rs 1,257 crore (QoQ)
Of the eight analysts tracking the company, four maintained 'buy', one maintained 'hold' and three maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 42.7%.
The company's net loss widened to Rs 778.4 crore in the quarter-ended December.
Goldman Sachs has upgraded the stock to 'buy' with the target price set at Rs 1,460, 50.2% higher than market price.
Source: Exchange Filing, Bloomberg
Vedanta, NALCO, NMDC, Tata Steel Lead The Gains In Metal Stocks
Lupin Slips As Analysts Expect Delay In Margin Expansion
Shares of Lupin fell over 4.4% in intraday trade to Rs 833.5 apiece, after brokerages remained cautious on the stock, citing lower offtake in seasonal products in the U.S., weak demand for API products and high RM costs, among others.
The company reported 24% YoY growth in net profit in Q3, beating estimates. Margins, however, contracted to 9% from 20% YoY.
Analysts expect margin expansion to be delayed.
Source: Exchange Filing, Bloomberg
Gujarat Narmada Jumps 15% After Reporting YoY Surge In Q3 Profit
Shares of Gujarat Narmada Valley Fertilisers & Chemicals rose over 15%, the steepest intraday advance since its listing, after the company reported a YoY uptick in net profit in the quarter-ended December.
Third-Quarter Results (Consolidated, YoY)
Revenue up 58% at Rs 2,380.33 crore Vs Rs 1,508.24 crore
Net profit at Rs 538.32 crore Vs Rs 240.12 crore
Ebitda up 86% at Rs 673.94 crore Vs Rs 362.95 crore
Margin at 28.3% Vs 24.1%
Trading volume on the stock is three times the 30-day average volume, at this time of the day.
Source: Exchange Filing, Bloomberg
Opening Bell: Sensex, Nifty Open Little Changed; Tata Steel, Power Grid Advance
India's stock benchmarks opened little changed, as losses in information technology, banking stocks were offset by gains in metal, energy and oil and gas stocks, amid rise in oil prices and decline in global equities.
The S&P BSE Sensex was little changed at 58,659.88. The NSE Nifty also traded flat at 17,506.15.
The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap gaining over 0.3%. Ten of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal gaining over 1%.
The market breadth was skewed in the favour of bulls. About 1,260 stocks advanced, 554 declined and 129 remained unchanged.
Tata Teleservices Has 3.9 Million Shares Change Hands Pre-Market
Tata Teleservices has 3.9 million shares change hands pre-market.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Stocks In Focus As Brent Oil Touches $94 Per Barrel
Asian energy stocks rally after Brent oil touched $94 per barrelas prices extended a rally that has pushed crude to its highest level since 2014.
In Focus: Reliance Industries, ONGC, Indian Oil Corp, Bharat Petroleum.
Source: Bloomberg
Brightcom To Buy U.S.-Based Digital Audio Firm For $102.5 Million
Brightcom Group signed a Letter of Intent to acquire a U.S. based digital audio firm, that owns and operates multiple assets.
The acquisition value is pegged at $102.5 million ($95 million in cash and $7.5 million of Brightcom Group's stock).
The acquisition is immediately EPS accretive by adding $45 million to the topline revenue of Brightcom and $15 million to its Ebitda.
The acquired audio firm is an integrated digital platform offering many programmed radio stations, digital brands and digital marketing services in several markets in the U.S.
Source: Exchange Filing
RBI Monetary Policy Committee Meeting On Feb. 8-10
Analyst Actions: CDSL, Jubilant Pharmova, InterGlobe Aviation
CDSL raised to 'hold' from 'reduce' at ICICI Securities; price target set at Rs 1,595.
Jubilant Pharmova cut to 'reduce' from 'buy' at Equirus Securities; price target set at Rs 468.
InterGlobe Aviation raised to 'hold' from 'sell' at ICICI Securities; price target set at Rs 1,871.
Jubilant Pharmova cut to 'neutral' from 'buy' at Motilal Oswal Securities; price target set at Rs 550.
Source: Bloomberg
Revolt Motors Expands Retail Presence In Uttar Pradesh, Opens New Outlet In Noida
RattanIndia backed Revolt Motors, market leader in electric bikes, expanded its retail presence in Uttar Pradesh, by opening an outlet in Noida.
This is the second outlet for Revolt Motors in Uttar Pradesh region and 21st dealership store across India.
The company aims to open 44+ new stores to meet customer requirements.
UP government has offered 100% vehicle registration fees and road tax exemption for 2-Wheeler EVs to encourage faster adoption. Exemptions and incentives are being provided on land for the first 1,000 EV charging stations.
Source: Exchange Filing
Dr Reddy’s Laboratories Gets DCGI Approval For The Single-Shot Sputnik Light Vaccine In India
Sputnik Light vaccine has received the nod for restricted emergency use.
Sputnik Light has been approved in over 30 countries around the world.
Two-dose Sputnik V vaccine has already been approved in India, which is also manufactured by Dr Reddy’s.
Source: Press release
Tata Power Aims To Raise $600 Million-$700 Million For Renewables, Reports Economic Times
The Indian firm is in advanced talks with investors including Canadian Pension Plan Investment Board, Singaporean sovereign fund Temasek Holdings and private equity firm Atlantic to raise $600m-700m, reported Economic Times newspaper, citing sources it didn’t identify.
Equity valuation for the renewable energy business is around $6 billion-7 billion.
Deal likely to be concluded in coming weeks
Tata Power, General Atlantic, and Temasek did not respond to emails seeking for comments from Economic Times
Canadian Pension Plan Investment Board declined to comment to the paper
Analyst Actions
Apollo Tyres raised to 'hold' at Asian Markets; price target set at Rs 220.
Cadila Health cut to 'neutral' at DAM Capital; price target set at Rs 440.
Firstsource Solutions cut to 'accumulate' at Dolat Capital.
Kansai Nerolac raised to 'buy' at Asian Markets; price target set at Rs 653.
NESCO raised to 'buy' at Sushil Finance; price target set at Rs 700.
PI Industries raised to 'buy' at Dolat Capital; price target set at Rs 3,299.
Shree Cement raised to 'buy' at Dolat Capital; price target set at Rs 29,718.
Source: Bloomberg
Analyst Actions
Lupin cut to 'equal-weight' from overweight at Morgan Stanley; price target set at Rs 964.
Lupin cut to 'reduce' from 'add' at Axis Capital; price target set at Rs 900.
Paytm raised to 'buy' from 'neutral' at Goldman Sachs; price target set at Rs 1,460.
PI Industries raised to 'buy' from 'accumulate' at Nirmal Bang; price target set at Rs 3,026.
Firstsource Solutions cut to 'add' at Spark Capital Advisors' price target set at Rs 170.
Source: Bloomberg
"Time To Tread With Alertness, With Eyes Open For Where The Market Takes Interest", Writes CK Narayan
Earnings Reaction Awaited
Tata Steel
State Bank of India
InterGlobe Aviation
Shree Cement
One97 Communications
Siemens
Godrej Agrovet
JK Cement
Gujarat Narmada Valley Fertilizers & Chemicals
City Union Bank
Jubilant Pharmova
Astral
Thermax
CreditAccess Grameen
Earnings To Watch
National Aluminium Co.
PB Fintech
Minda Industries
Indian Bank
Jindal Stainless
The Phoenix Mills
TVS Motor Company
Clean Science and Technology
Glaxosmithkline Pharmaceuticals
Castrol India
Borosil
Union Bank Of India
JM Financial
KPR Mill
Tube Investments of India
Indo Count Industries
Camlin Fine Sciences
Ami Organics
NGL Fine-Chem
Paisalo Digital
Punjab & Sind Bank
Bannari Amman Sugars
Authum Investment & Infrastructure
Sansera Engineering
Chemcon Speciality Chemicals
Butterfly Gandhimathi Appliances
Gabriel India
Gujarat Industries Power Co.
MM Forgings
Nucleus Software Exports
Precision Wires India
Quint Digital Media
Renaissance Global
Tarsons Products
Texmaco Rail & Engineering
Valiant Organics
Here Are The Stocks To Watch In Today's Trade
Reliance Industries: Jio Platforms announced an investment of $15 million in Two Platforms Inc. for a 25% equity stake on a fully diluted basis.
Cipla: The company has entered into share subscription and shareholder’s agreement and power purchase agreement to acquire up to 32.49% stake on a fully diluted basis in AMP Energy Green Eleven, for setting up captive solar power project in Maharashtra.
Zee Entertainment Enterprises: IndusInd Bank has filed insolvency petition against the company claiming a default of Rs 83.08 crore.
Godrej Properties: The company decided to cancel the proposed deal of Rs 400 crore to buy around 10% stake in DB Realty and invest Rs 300 crore for slum redevelopment, following feedback from its stakeholders and minority shareholders.
PVR: The company has signed an agreement with M3M India to set-up an 8-screen multiplex at 65th Avenue, the recently delivered largest luxurious retail project in South Gurugram by M3M India.
Cipla: Global Chief Financial Officer Kedar Upadhye resigned from his position.
EaseMyTrip: The company has entered into a definitive agreement with Yolo Traveltech to acquire the brand name, technology, running business expertise, data and team.
FDC: The company will consider proposal for buyback of fully paid up equity shares of the Company through Tender Offer route on Feb. 9.
NALCO: The company appointed Ramesh Chandra Joshi as Director (Finance).
Minda: The company appointed Vinod Raheja as group chief financial officer and group chief risk officer consequent to Naresh Kumar Modi’s resignation from the post of CFO.
Gati: The company appointed Anish T Mathew as a chief financial officer.
Uttam Sugar Mills: The company redeemed 5,00,000 6.5% non-cumulative redeemable preference shares of Rs. 100 each.
Virinchi: The company increased authorized capital from Rs 100 crore divided into 10 crore shares of Rs 10 each to Rs 150 crore divided into 15 crore shares of Rs 10 each. It further approved issue of bonus shares in 1:1 ratio
Stove Kraft: The company has entered into business transfer agreement with Skava Electric.
SGX Nifty Hints At Opening Losses; Tata Steel, SBI, RIL, Cipla, Lupin, Paytm In Focus
Stocks and U.S. futures dipped on Monday amid intensifying bets on Federal Reserve interest-rate hikes that are also weighing on bonds. Australian debt slid and Treasuries remained lower.
Shares in Japan, Australia and South Korea retreated, while S&P 500 and Nasdaq 100 futures edged lower. China resumed trading later after a weeklong holiday.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.11% to 17,470.50 as of 6:30 a.m.
Oil’s ongoing rally paused at around $92 a barrel. Bitcoin climbed above $42,000 to the highest level in over two weeks.
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