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Sensex, Nifty Stage Worst Fall Since Cash Ban, Day After Budget

 Sensex, Nifty Stage Worst Fall Since Cash Ban, Day After Budget
A stock broker reacts at a brokerage in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)
8 years ago
Nifty futures on Singapore Exchange fell 120 points indicating gap down opening for Indian markets.

Shares of the Haryana-based home improvement products maker declined 1.8 percent to Rs 1,475 after its net profit declined in October-December quarter.

Key earnings highlights:

  • Net profit down 4 percent at Rs 53 crore versus Rs 55.4 crore (YoY).
  • Revenue up 17 percent at Rs 958 crore versus Rs 810 crore (YoY).
  • EBITDA at Rs 89.1 crore versus 84.3 crore (YoY).

Shares of the Pune-based two-wheeler maker extended losses after its net profit missed consensus analyst estimates compiled by Bloomberg.

Key earnings highlights:

  • Net profit up 3.7 percent at Rs 1,013.16 crore versus Rs 976.82 crore (YoY).
  • Net at Rs 1,013 crore versus Bloomberg estimate of Rs 1,072 crore.
  • Revenue at Rs 6.369.3 crore versus Bloomberg estimate of Rs 6235 crore.
  • Margin at 19.3 percent versus Bloomberg estimate of 20 percent.
  • EBITDA at Rs 1,231 crore versus Bloomberg estimate of Rs 1,250 crore.
  • EBITDA up 18 percent at Rs 1,231 crore versus Rs 1,044 crore (YoY).

Shares of the Aditya Birla Group aluminum and copper producer declined after it reported earnings for October-December quarter earnings.

Key earnings highlights:

  • Standalone net profit at Rs 375.5 crore versus Bloomberg estimate Of Rs 501.62 crore.
  • Standalone net sales up 18.4 percent at Rs 11,022.8 crore versus Bloomberg estimate Of Rs 10,953 crore.
  • Standalone EBITDA at Rs 1,311.7 crore versus Bloomberg estimate Of Rs 1,385.31 crore.
  • Standalone margin at 11.9 percent versus 12.7 percent (YoY).
  • Standalone net profit up 17.6 percent at Rs 375.5 crore versus Rs 320.5 crore (YoY).
  • One-time loss at Rs 115.2 crore.

Shares of the Mangalore-based crude oil refiner came off day's low after its net profit came in better than consensus analyst estimates compiled by Bloomberg.

Key earnings highlights:

  • Net profit at Rs 970 crore versus Bloomberg estimate of Rs 612 crore.
  • Revenue at Rs 17,420 crore versus Bloomberg estimate of Rs 14,420 crore.
  • Total costs at Rs 15,960 crore.

  • Indian equity benchmarks held on to losses and fell most in over a month dragged down by weakness in Reliance Industries, HDFC twins and ICICI Bank.
  • The S&P BSE Sensex fell 1.4 percent or 522 points to 35,385 and the NSE Nifty 50 Index tumbled 156 points or 1.4 percent to 10,860.
  • The broader markets were also facing the heat of selling pressure with the S&P BSE MidCap and S&P BSE SmallCap Indices down over 2 percent each.
  • All sector gauges compiled by BSE were trading lower weighed down by the S&P BSE Realty Index's 3.6 percent drop.

Shares of the private sector lenders extended losses weighed down by ICICI Bank and Axis Bank's over 2.5 percent drop. The gauge of private banks compiled by National Stock Exchange — Nifty Private Bank Index fell over 2 percent, the most in over a month, to 14,966.

Shares of the Mumbai-based real estate developer fell as much as 3.3 percent to Rs 780.85 after its net profit declined sharply in December quarter.

Key earnings highlights:

  • Consolidated net profit at Rs 25.94 crore versus Bloomberg estimate of Rs 56 crore.
  • Net profit down 66.4 percent at Rs 25.94 crore versus Rs 77.2 crore (YoY).
  • Revenue at Rs 627 crore versus Bloomberg estimate of Rs 432.7 crore.
  • Revenue up 21 percent at Rs 627 crore versus Rs 518.2 crore (YoY).
  • EBITDA at Rs 46.2 crore versus Rs 120.7 crore (YoY).
  • Margin at 7.4 percent versus 23.3 percent (YoY).

  • We need to consolidate on fiscal front is a reality.
  • Must commend government for increasing tax compliance.
  • Capital expenditure may end up a lot lower than budgeted expenditure.
  • Quality of consolidation may suffer.
  • Capital expenditure could take an axe.
  • Significant increase in revenues from GST positive in Budget.
  • MSP increase could be 10 percent or a bit higher.
  • Key concerns, 3 percent target is pushed out to two years by 2021.
  • Government has not clarified on costs of MSP increase.

Shares of the country's largest cigarette maker rose for second day in a row, rising as much as 3.76 percent to Rs 285.65 after the government kept the cess on cigarettes unchanged.

Shares of other cigarette makers

  • Godfrey Phillips rose 1.46 percent
  • VST Industries rose 3.14 percent

  • JM Financial has 11.9 lakh shares change hands in a single block.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

  • Economy is on a solid footing but markets will be less assured because it is global.
  • Inflation targeting is a great achievement of this government, very good for bond market.
  • Hope to see rural demand recover this year.
  • Rural growth is a long-term challenge; landless labour is leaving rural India.
  • Remain constructive on consumption sector.
  • Like discretionary consumption especially rural ones.
  • Like corporate banks, infrastructure owners, domestic materials and software stocks.
  • Earnings so far have surprised analysts this time.
  • Nifty's 80-85 percent performance in next 3 months will depend on global markets.
  • Tax issues haven't stopped FPIs to buy in India, don't think it'll happen even now.
  • Tax issues on FPIs is not a new thing, this has been there for years.
  • 90 percent of stt comes in from day traders.
  • Not rolling back STT is certainly a disappointment for market players.
  • Don't think that there was any need to increase defence budget.
  • Was not expecting LTCG in this budget.
  • This budget is hawkish on social spending and bullish on investment boosting.
  • Health plan scale-up in the 1st year could be an execution disaster budget seems neutral for equities but near-term headwinds for bonds will remain.
  • Budget's overall impact on macro stability will be manageable.
  • National Health Insurance Scheme looks promising if scaled up.
  • Education, health sector received long overdue focus.
  • Focus on health and education in budget is very promising but not an agenda this year.
  • Earnings growth this year will be in double-digits.
  • Bond market is currently expecting some slippage.
  • Biggest worry for market is increasing oil prices.
  • Protecting inflation is good for markets.
  • This was not a populist or growth budget, this was to protect inflation.
  • Expect oil to come under GST net.
  • Some food inflation can come towards the end of year.
  • Budget is done to protect inflation next year.
  • No intention to tax retrospectively is positive.

Sovereign bonds are set to remain under pressure as a proposed hike in minimum support prices for farmers is likely to fan inflation and spur RBI to maintain a hawkish stance. Also, the fiscal deficit at 3.3 percent of GDP compared to consensus of 3.2 percent for 2019 has hurt sentiment.

Of course, gross bond issuance estimate of Rs 6.06 lakh crore was lower than expectations, but analysts at Morgan Stanley say it is optimistic and expect the number to be close to Rs 6.4 lakh crore eventually. The benchmark 10-year yield rose 18 basis points to 7.61 percent on Thursday and today the RBI will sell Rs 11,000 crore worth of bonds.

Meanwhile, the rupee is likely to trade with a weak bias, slugged by the government's decision to impose long term capital gains tax on stock market profits. That could impact foreign fund inflows into booming equity markets. The rupee weakened by 0.7 percent on Thursday at 64.0225 and forwards indicate the currency should open around those levels.

The Pune-based two-wheeler maker's sales rose 46 percent in January to 3,53,147 units compared with 2,41,917 units during the same period last year.

  • Commercial vehicle sales grew 113 percent to 64,211 units.
  • Motorcycle sales rose 36 percent to 2,88,936 units.
  • Exports rose 41 percent to 1,50,954 units.

  • Bajaj Holdings & Investment
  • Bayer Cropscience
  • BSE
  • Glaxosmithkline Pharmaceuticals
  • Godrej Properties
  • Gujarat Gas
  • IEX
  • Info Edge
  • Inox Wind
  • MRPL
  • Whirlpool

Ashok Leyland Q3 (YoY)

  • Revenue up 57.5 percent at Rs 7,113 crore.
  • Net profit up 178 percent at Rs 450 crore.
  • EBITDA up 74 percent at Rs 788.5 crore.
  • Margin at 11.1 percent versus 10 percent.

Ceat Q3 (YoY)

  • Revenue up 13 percent at Rs 1,574 crore.
  • Net profit down 2 percent at Rs 82.6 crore.
  • EBITDA up 22 percent at Rs 186 crore.
  • Margin at 11.8 percent versus 11 percent.

Zee Media Q3 (YoY)

  • Revenue up 44.5 percent at Rs 159 crore.
  • Net profit of Rs 10.3 crore versus net loss of Rs 6.2 crore.
  • EBITDA up 81 percent at Rs 38 crore.
  • Margin at 23.9 percent versus 19.1 percent.

Bajaj Finserv Q3 (YoY)

  • Revenue up 21 percent at Rs 7,666 crore.
  • Net profit up 22 percent at Rs 748.6 crore.
  • Net interest income up 38 percent at Rs 2,372.4 crore.
  • Net NPA at 0.53 percent versus 0.51 percent (QoQ).

Khadim Q3 (YoY)

  • Revenue up 47.5 percent at Rs 205 crore.
  • Net profit up 89 percent at Rs 8.9 crore.
  • EBITDA up 48 percent at Rs 20 crore.
  • Margins at 9.8 percent versus 9.7 percent.

UCAL Fuel System Q3 (YoY)

  • Revenue up 0.5 percent at Rs 149.2 crore.
  • Net profit up 98 percent at Rs 11.7 crore.
  • EBITDA up 45 percent at Rs 27.2 crore.
  • Margin at 18.2 percent versus 12.7 percent.

PowerGrid Q3 (YoY)

  • Revenue up 13 percent at Rs 7,507 crore.
  • Net profit up 6 percent at Rs 2,041 crore.
  • EBITDA up 13 percent at Rs 6,738.5 crore.
  • Margin at 89.8 percent versus 89.9 percent.

Akzo Nobel Q3 (YoY)

  • Revenue up 6 percent at Rs 712 crore.
  • Net profit up 20 percent at Rs 82.6 crore.
  • EBITDA down 2 percent at Rs 98 crore.
  • Margin at 13.8 percent versus 14.9 percent.

Pricol Q3 (YoY)

  • Revenue up 8 percent at Rs 327 crore.
  • Net profit down 17 percent at Rs 8.7 crore.
  • EBITDA up 6.5 percent at Rs 33 crore.
  • Margin at 10.1 percent versus 10.2 percent.

Cummins Q3 (YoY)

  • Revenue flat at Rs 1,354 crore.
  • Net profit down 13 percent at Rs 172 crore.
  • EBITDA down 13 percent at Rs 196 crore.
  • Margin at 14.5 percent versus 16.7 percent.

CCL Products Q3 (YoY)

  • Revenue down 5 percent at Rs 274 crore.
  • Net profit down 11 percent at Rs 40.4 crore.
  • EBITDA down 17 percent at Rs 64 crore.
  • Margin at 23.4 percent versus 26.8 percent.

PNB Gilts Q3 (YoY)

  • Revenue down 59 percent at Rs 68 crore.
  • Net loss of Rs 14 crore versus net profit of Rs 66 crore.

  • TVS Motors Jan. sales up 31 percent at 2.71 lakh units.
  • SML Isuzu Jan. sales down 6.4 percent at 938 units.
  • VST Tillers Jan. sales up 32 percent at 2,822 units.

  • Novelis posts strong third quarter with its full year EBITDA at the higher end of its forecast.
  • Lupin launches generic Clobex Lotion in the U.S., which has annual sales of approx $12.6 million.
  • Zee Media Board approves acquiring balance 40 percent in Zee Akaash News for Rs 49 crore
  • Gammon Infra-led consortium received EPC order worth Rs 577 crore from NHAI.
  • Hinduja Ventures acquires 10.32lk shares of Hinduja Leyland Finance on rights basis
  • Info Edge to sell 32,629 shares (6.66 percent) in Zomato to Ant Small and Micro for $50 million
  • Grasim Industries to raise production capacity of VFS business to 46,300 tonne per annum from 21,300 tonne per annum

Vakrangee circuit filter revised to 10 percent.

  • Jain Irrigation: Societe Generale bought 30.96 lakh shares or 0.6 percent equity at Rs 135.01 each.
  • Fortis Healthcare: Societe Generale sold 34.56 lakh shares or 0.7 percent equity at Rs 130.26 each.
  • V-Mart:

    • Bottom Billion Fund bought 1.05 lakh shares or 0.6 percent equity at Rs 1,515 each.
    • Citigroup Global Markets Mauritius Private Limited sold 1.05 lakh shares or 0.6 percent equity at Rs 1,515 each.

Commodities

West Texas Intermediate oil traded near its highest level since 2015 as forecasters paint a rosier picture for supply and demand.

  • West Texas Intermediate crude rose 0.4 percent to $66.06 a barrel.
  • Gold was flat at $1348.53 an ounce.
  • LME copper was little changed at $7,117 per metric ton.

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