KEY HIGHLIGHTS
Closing Bell
India's stock benchmarks logged the best day in over a year, as markets rebounded from the steep decline over the previous two sessions, as Russia-Ukraine geopolitical tensions eased. The rally was aided by gains in auto, information technology and banking stocks.
The Sensex added 3.08% to 58,142.05. All the constituents of the 30-stock gauge rose. The Sensex gained over 1,805.54 for an intraday high of 58,211.38.
The Nifty also advanced over 3% (equivalent of 500 points) to 17,352.45. About 48 of the Nifty 50 stocks advanced while two declined. Tata Motor gained the most, rising 6.9%.
The broader indices underperformed their larger peers with the S&P BSE MidCap adding 2.7% and S&P BSE Smallap adding 2%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Auto gaining nearly 4%.
The market breadth was skewed in the favour of bulls. ABout 2,052 stocks advanced, 1,320 declined and 92 remained unchanged.
"The market witnessed the strong pullback rally after a big correction that occurred in the market on Monday. While sustaining above 17,200 is the key factor from a short-term perspective, market research suggests, a decisive breakout above the zone of 17,400-17,450 could open the gate for a movement till 17,800. The momentum indicators like RSI, MACD indicating a positive outlook to continue and market breadth to improve further after the decisive level breakout of the resistance zone", Vijay Dhanotiya, Category Lead - HNI Produts at CapitalVia Global Research Ltd. wrote in a note.
India's Information Technology Industry To Surpass $200 Billion Revenue This Fiscal year: Nasscom
Revenue from IT players including Tata Consultancy Services and Infosys Ltd. should grow 15.5% in the year ending March 2022 to about $227 billion, industry association Nasscom says in a statement.
India now has 83,40,000 internet users.
IT industry exports, including hardware, should hit $178b this fiscal year.
The domestic e-commerce industry will expand to $79b in fiscal 2022.
IT industry should grow 11%-14% to about $350b by fiscal 2026.
India is planning more reforms for its telecom and tech sectors: minister Ashwini Vaishnaw says at annual Nasscom event
Source: Bloomberg
PSU Banks Advance
European Markets Erase Losses & Surge Higher As Geopolitical Tensions Ease
Info Edge To Invest In Gurugram-Based Juno Learning
Info Edge has acquired a 25% stake for Rs 11.25 crore in Juno Learning, an online school that teaches sales techniques to entry-level professionals and students.
Info Edge’s portfolio has platforms like Zomato, Naukri.com, Shiksha, JeevanSathi.com and 99acres.
Source: Exchange filing
Sensex, Nifty Gain Over 3% As Geopolitical Tensions Ease
Reliance Industries Logs The Biggest Intraday Gain In Over 11 Weeks
Sensex, Nifty Add Nearly 3%
Sensex, Nifty are on course to log the best day in over a year since Feb. 1, 2021.
SpiceJet Surges 10% As Q3 Revenue Exceeds Analyst Estimate
Shares of SpiceJet surged nearly 10% after the company reported net income for the third quarter of Rs 23.28 crore as compared to a loss of Rs 56.96 crore YoY
December Quarter Results (Standalone, YoY)
Net profit at Rs 23.28 crore vs loss of Rs 56.96 crore
Revenue up 34% at Rs 2,259.30 crore vs Bloomberg consensus estimate of Rs 2,150 crore
Total costs up 34% at Rs 2,578.86 crore
Other income at Rs 429.31 crore vs Rs 189 crore
Load factor at 85.2%
The company had a one-line loss of Rs 77.46 crore in Q3 as it entered into settlement agreement with manufacturer of Q400 aircraft.
Company expects passenger segment to recover and logistics segment to continue to exhibit strong growth.
Of the 10 analysts tracking the company, two maintain 'buy', four suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 17.2%.
Trading volume on the stock was over 1.5 times the trading volume at this time of the day.
Source: Exchange Filing, Bloomberg
Russia Returning Some Troops to Base After Drills, Interfax Says
Russia returning some troops to base after drills, reports interfax
Russia's Defense Ministry announced the start of a pullback of some forces after drills that raised U.S. and European alarm about a possible military assault on Ukraine.
Units of the Western and Southern military districts will begin returning to permanent bases after completing exercises, the Interfax news service reported.
U.S. and NATO have warned that Russia has massed some 1,30,000 troops near the border with Ukraine in preparation for a possible invasion and demanded a withdrawal to ease tensions.
The Kremlin has consistently denied it plans an attack.
Source: Bloomberg
Analyst Actions: Muthoot Finance, Astra Microwave, India Cements
Muthoot Finance: Elara Securities initiated coverage on the stock with a recommendation of 'buy'; price target set at Rs 1,657.
Astra Microwave raised to 'buy' from 'hold' at ICICI Securities; price target set at Rs 250.
India Cements raised to 'neutral' from 'reduce' at Choice Equity; price target set at Rs 194.
Source: Bloomberg
Sensex, Nifty At Day's High
European Markets Open Lower
Telecom Stocks Advance
India’s Trade Deficit Narrowed In January 2022
Trade deficit narrowed to $17.42 billion in January 2022 from $21.68 billion in December 2021.
Exports rose by 25.3% year-on-year to $34.5 billion.
Exports fell 8.7% month-on-month.
Imports rose by 23.5% year-on-year to $51.9 billion.
Imports fell 12.8% month-on-month.
Source: Ministry of Commerce and Industry
Also Read: India's Trade Deficit Narrows In January
Investors Seek Haven Assets Amid Geopolitical Tensions
M&M Financial Services Approves Raising Up To Rs 500 Crore Via Bonds
Mahindra & Mahindra Financial Services approved the allotment of 5,000 secured redeemable non-convertible debentures of the face value of Rs 10 lakh each, aggregating to Rs 500 crore.
Source: Exchange Filing
Analyst Actions: Ashok Leyland, Nuvoco Vistas
Ashok Leyland raised to 'buy' at Elara Securities India; price target set at Rs 162.
Nuvoco Vistas cut to 'hold' at Asian Markets; price target set at Rs 409.
Source: Bloomberg
Top Sectoral Gainers
Broader Indices Underperform Their Larger Peers
Mid-Day Market Update: Sensex, Nifty At Day's High; Auto, I.T., FMCG, Banking Stocks Rise
India's stock benchmarks rose after a two-day decline, aided by gains in auto, information technology, fmcg, banking stocks, amid a rebound in global equities.
The S&P BSE Sensex added over 800 points (or nearly 1.5%) to 57,219.21. The NSE Nifty advanced by similar magnitude to 17,085.40. This is the biggest intraday gain for Sensex and Nifty in two weeks since Feb. 1, the day of the union budget.
The broader indices underperformed their larger peers with the S&P BSE MidCap rising over 0.9% and S&P BSE SmallCap gaining 0.3%. Barring S&P BSE Utilities and S&P BSE Metal, all the other 17 sectoral indices compiled by BSE Ltd advanced, with S&P BSE Information Technology, S&P BSE Telecom, S&P BSE Auto and S&P BSE Teck indices gaining nearly 2%.
The market breadth was skewed in the favour of bears. About 1,489 stocks advanced, 1,758 declined and 98 remained unchanged.
NSE Nifty Auto Index Gains Nearly 2%
Axis Bank Invokes Rs 91.62 Crore Corporate Guarantee From Zee Learn
Zee Learn Ltd. received communication from Axis Bank on Monday, for invocation of corporate guarantee of Rs 91.62 crore granted in favour of Digital Ventures Pvt on Sept. 25, 2014.
Zee Learn has been asked to pay the said amount within seven days from the receipt of the letter (till Feb. 21, 2022).
Zee Learn is evaluating necessary steps for further action.
Source: Exchange Filing
Macleods Pharmaceuticals Seeks Approval For India IPO
Company's founders seek to sell 60.48 million shares in an IPO, according to its draft prospectus
Among the sellers, Girdharilal Bawri will set up to 6.37 million shares, Banwarilal Bawri will sell up to 8.96 million shares and Rajendra Agarwal will set up to 5.28 million shares.
The company is not selling any new share and won't receive any proceeds from the offer.
Kotak Mahindra Capital, Citi, Edelweiss Financial Services, ICICI Securities and Nomura are the banks managing the sale.
Source: Bloomberg
India Bonds Gain After Debt Auction Cancellation
Indian bonds gain after the RBI canceled a debt auction for a second successive week. The rupee edges lower.
10-year yields fell 2bps to 6.65%; 6.1% 2031 bond yield drops 4bps to 6.64%
USD/INR rose 0.1% to 75.6675
Source: Bloomberg
Supreme Court Asks Future Group To Approach High Court For Allowing Continuation Of NCLT Proceedings
Future Group-Reliance deal: Supreme Court asks Future Group to approach the high court for allowing continuation of NCLT proceedings.
The top court in September last year asked regulatory authorities to not pass any final orders on Reliance-Future Group transaction.
Future Retail had requested the Supreme Court to allow continuation of proceedings before NCLT.
India Yields Mostly Lower
Most yields along the India sovereign yield curve fell, with 30-year bonds moving the most in Tuesday morning trading.
The 2-year yield fell 1.6bps to 4.821%
The 10-year yield fell 1.1bps to 6.657%
The 30-year yield fell 3.5bps to 7.092%
The 2-year-10-year yield spread was 183.6bps, vs previous close 183.1bps
The NSE Nifty 50 Index rose 0.4%
Source: Bloomberg
10-Year Bond Yield Drops On RBI Auction Scrap
Manappuram Finance Slips The Most In Six Months
Shares of Manappuram Finance tumbled nearly 12.5%, the steepest intraday decline in six months, after most analysts reduced price target after the company reported a Q3 miss.
Net income fell 46% YoY to Rs 261 crore vs Bloomberg consensus estimate of Rs 384 crore.
Trading volume on the stock was nearly 12 times the 30-day average volume at this time of the day.
The relative strength index on the stock was at 21, suggesting it may be oversold
Source: Bloomberg, Brokerage note, Exchange Filing
Volatile Start To The Trading Session; Sensex, Nifty Shed Morning Gains
Most Analysts Retain 'Buy' On Coal India After Q3 Results
ACC Expands Capacity By 1.6 MTPA At Tikaria Grinding Unit In Uttar Pradesh
ACC Ltd., a member company of Holcim India, has successfully commissioned 1.6 MTPA Grinding Unit at Tikara in Uttar Pradesh.
With this, the total capacity of Tikaria GU will be 3.91 MTPA.
ACC aims to manufacture environment friendly cement products with low carbon emission in the new facility
Source: Exchange Filing
Govt Cancels Auction Of Dated Security Scheduled On Feb. 18
Government has decided, in consultation with RBI, to cancel the auction of all the securities scheduled to be held on Feb. 18, 2022.
Source: PIB
NTPC Has 1.6 Million Shares Change Hands In A Bunched Trade
NTPC has 1.6 million shares change hands in a bunched trade.
Details of the buyers, sellers are not known immediately.
Source: Bloomberg
NSE Nifty FMCG Index Adds 1%
All Constituents Of NSE Nifty IT Index Advance
Cipla Has 20 Million Shares Change Hands In Two Large Trades; Shares Fall The Most In 11 Weeks
Cipla has 2.48% of equity shares (amounting to 20 million shares) change hands in two large trades.
Shares of Cipla fell nearly 4.5%, the most in 11 weeks.
Cipla confirmed that YK Hamied, Chairman and MK Hamied, Vice Chairman have sold 2,01,69,756 shares (representing 2.5% of total issued and paid-up share capital of the company) today.
The promoter group will continue to hold 34.23% in the copany, post the transaction.
The promoters intend to use the funds generated from this sale for personal purposes including philanthropy.
Source: Bloomberg, Exchange Filing
Opening Bell: Sensex, Nifty Open Higher, I.T., Metal Stocks Advance
India's stock benchmarks opened higher, aided by gains in metal, information technology and realty stocks, amid the rebound in global equities as investors parsed geopolitical risks and inflation worries.
The S&P BSE Sensex rose 0.8% to 56,859.32. The NSE Nifty 50 advanced by similar magnitude to 16,985.05.
The broader indices almost mirrored their larger peers with the S&P BSE MidCap adding 0.9% and S&P BSE SmallCap gaining over 1%. Barring S&P BSE Utilities and S&P BSE Power, all the other 17 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty, Information Technology gaining over 1%.
The market breadth was skewed in the favour of bulls. About 1,749 stocks advanced, 821 declined and 69 remained unchanged.
Bonds To Gain As RBI Cancels Weekly Auction
Indian bonds are likely to gain after the central bank canceled a weekly debt auction. Traders will also asses higher local retail inflation and U.S. yields
India’s retail inflation breached the central bank’s 6% tolerance limit for the first time in seven months, an increase that is unlikely to prompt the growth-focused central bank to raise interest rates
Consumer prices rose 6.01% in January from a year earlier, the Statistics Ministry said in a statement on Monday. That’s nearly in line with the 6% median estimate in a Bloomberg survey of 40 economists and the highest reading since June.
USD/INR rose 0.3% to 75.6013 on Monday
10-year yields fell 3bps to 6.67%
Global funds sell net Rs 4,250 crore of India stocks Monday: NSE
They sold Rs 149 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 195 crore of corporate debt
State-run banks sold Rs 2,000 crore of sovereign bonds on Feb. 14: CCIL data. Foreign banks bought Rs 2,530 crore of bonds.
Source: Bloomberg
Trade Setup For Tuesday
Religare Challenges Fraud Classification Of Religare Finvest By Lenders
Religare Enterprises informed that its subsidiary Religare Finvest received communication from RBI advising restructuring of the company cannot be implemented with Religare Enterprises as its promoter.
RBI, in its communication dated Feb. 10, had reasoned that this restriction was because the Religare Enterprises has been declared as 'fraud' exposure by lenders.
Religare Enterprises added that Religare Finvest had represented to the central bank regarding wrongful classification of its account as 'fraud'. The company is awaiting the response from RBI and is in the process of taking suitable measures.
Source: Exchange Filing
January CPI Inflation Rises To The Highest Since June 2021
Investors Rush To Gold Amid Geopolitical Tensions
How The Geopolitical Tensions In Eastern Europe Sparked Volatility In Global Markets
Analyst Actions: ACC, Kalpataru Power
ACC raised to 'buy' from 'add' by Centrum Broking; price target set at Rs 2,736.
Kalpataru Power cut to 'add' from 'buy' by Spark Capital Advisors; price target set at Rs 388.
Source Bloomberg
Analyst Actions: CAMS, IRB Infra, Mphasis, Mindtree, Divi's Labs, Godrej Agrovet
CAMS raised to 'add' at HDFC Securities; price target set at Rs 2,885.
IRB Infra cut to 'add' at HDFC Securities; price target set at Rs 302.
Mphasis raised to 'buy' at Goldman; price target set at Rs 3,465.
Mindtree raised to 'neutral' at Goldman; price target set at Rs 3,919.
Divi’s Labs cut to 'reduce' at IIFL; price target set at Rs 3,700.
Godrej Agrovet raised to 'accumulate' at Asian Markets
Source: Bloomberg
Stocks To Watch
Reliance Industries: Jio Platforms will invest $200 million in Glance to accelerate Glance's launch in key international markets outside of Asia such as the U.S., Brazil, Mexico and Russia.
Vedanta: The company has signed an MoU with Hon Hai Technology Group (Foxconn) to form a joint venture company that will manufacture semiconductors in India. Vedanta will hold the majority of equity in the JV.
Cipla: Promoters to sell up to 2.5% stake in block deals, according to terms of the deal obtained by Bloomberg. The company’s shares are offered at a price range of Rs 904.8 to Rs 916.7 each in a secondary placement. 16.14 million shares are being offered by the sellers, with option to upsize to 4.03 million shares.
Godrej Consumer Products: The company divested its entire stake in BBLUNT for Rs 84.5 crore. Honasa Consumer, the parent company of Mamaearth, has acquired BBLUNT from the company. The transaction is expected to be complete by March 14.
One 97 Communications: Merchant payments processed on Paytm platform in January jumped 105% from a year earlier to Rs 83,481 crore. Average monthly transacting users jumped 40% YoY to 68.9 million. Number of loans disbursed through Paytm jumped to 1.9 million from 0.4 million YoY. Value of loans disbursed through Paytm was Rs 921 crore in January compared with Rs 212 crore last year.
SREI Infrastructure Finance: Kolkata NCLT has approved consolidated insolvency proceeding for SREI Group NBFCs. SREI Infrastructure Finance and SREI Equipment Finance will face consolidated insolvency proceeding, under the same committee of creditors. Bidders will be required to bid for a consolidated balance sheet.
Pennar Industries: The company bagged orders worth Rs 647 crore across its various business verticals between Dec 2021-Jan 2022.
Earnings: Crisil
Earnings Post Market Hours
Coal India Q3FY22 (Consolidated, QoQ)
Revenue up 22.1% at Rs 28,433.5 crore Vs Rs 23,291.08 crore (Bloomberg estimate: Rs 27,148.3 crore)
Net profit up 55.2% at Rs 4,558.39 crore Vs Rs 2,936.91 crore (Bloomberg estimate: Rs 4,336.83 crore)
Ebitda up 73.1% at Rs 6,825.48 crore Vs Rs 3,942.31 crore (Bloomberg estimate: Rs 6,398.3 crore)
Margin at 24% Vs 16.9% (Bloomberg estimate: 23.5%)
Adani Enterprises Q3FY22 (Consolidated, YoY)
Revenue up 61% at Rs 18,757.87 crore Vs Rs 11,620.45 crore
Net loss of Rs 11.63 crore Vs Net profit of Rs 296.81 crore
Ebitda at Rs 771.72 crore Vs Rs 771.97 crore
Margin at 4.1% Vs 6.6%
Eicher Motors Q3FY22 (Consolidated, YoY)
Revenue up 2% at Rs 2,880.65 crore Vs Rs 2,828.26 crore
Net profit down 14% at Rs 456.13 crore Vs Rs 532.59 crore
Ebitda down 13% at Rs 582.36 crore Vs Rs 672.02 crore
Margin at 20.2% Vs 23.8%
Balkrishna Industries Q3FY22 (Consolidated, YoY)
Revenue up 36% at Rs 2,045.81 crore Vs Rs 1,509.23 crore
Net profit up 4% at Rs 338.95 crore Vs Rs 325.07 crore
Ebitda down 5% at Rs 456.65 crore Vs Rs 479.57 crore
Margin at 22.3% Vs 31.8%
Declared an interim dividend of Rs 4 per share and a special dividend of Rs 12 per share.
NBCC India Q3FY22 (Consolidated, YoY)
Net income from operations down 4% at Rs 2,009.05 crore Vs Rs 2,103.61 crore
Net profit down 11% at Rs 83.04 crore Vs Rs 93.42 crore
Ebitda up 14% at Rs 72.76 crore Vs Rs 63.84 crore
Margin at 3.6% Vs 3%
Natco Pharma Q3FY22 (Consolidated, YoY)
Revenue up 58% at Rs 560.50 crore Vs Rs 355.20 crore
Net profit up 28% at Rs 80.40 crore Vs Rs 62.70 crore
Ebitda up 23% at Rs 101.80 crore Vs Rs 82.5 crore
Margin at 18.2% Vs 23.2%
Declared interim dividend of Rs 2 per share
Appointed GS Murthy as chairman of the company with effect from April 1, 2022
Dish TV India Q3FY22 (Consolidated, YoY)
Revenue down 13% at Rs 710.67 crore Vs Rs 815.67 crore
Net profit down 11% at Rs 80.64 crore Vs Rs 90.69 crore
Ebitda down 15% at Rs 425.96 crore Vs Rs 503.94 crore
Margin at 59.9% Vs 61.8%
Future Retail Q3FY22 (Consolidated, QoQ)
Revenue up 19% at Rs 2,815.68 crore Vs Rs 2,368.79 crore
Net loss at Rs 1,063.36 crore Vs Rs 1,116.99 crore
Ebitda loss at Rs 320.91 crore Vs Rs 354.04 crore
JB Chemicals & Pharmaceuticals Q3FY22 (Consolidated, YoY)
Revenue up 10% at Rs 600.65 crore Vs Rs 548.21 crore
Net profit down 46% at Rs 83.88 crore Vs Rs 154.10 crore
Ebitda down 25% at Rs 128.10 crore Vs Rs 170.99 crore
Margin at 21.3% Vs 31.2%
Declared interim dividend of Rs 8.50 per share
SGX Nifty Hints At Opening Gains; RIL, Cipla, Vedanta, Coal India In Focus
Asian stocks and U.S. equity futures were steady on Tuesday as traders parsed geopolitical risks and worries about Federal Reserve monetary-policy tightening to fight inflation.
Shares in Japan, South Korea and Australia fluctuated. The S&P 500 notched a third straight drop Monday after a few rebound attempts, while the technology-heavy Nasdaq 100 closed with a small gain.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.17% to 16,868 as of 6:20 a.m.
The Russia-Ukraine tensions are still keeping oil markets on edge. West Texas Intermediate edged back but remained in sight of $95 a barrel after earlier scaling that mark for the first time since 2014.
In precious metals, gold held on its recent gains, supported by the worries in global markets.
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