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Sensex, Nifty Snap Three-Day Winning Streak; IT Stocks Outperform

Sensex, Nifty Snap Three-Day Winning Streak; IT Stocks Outperform
A broker speaks on telephones on the trading floor. (Photographer: Luke MacGregor/Bloomberg)
8 years ago
Asian equities' best start to a year since 2006 took a breather Tuesday in the absence of fresh catalysts to spur the rally on. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, was a little changed at 10,756.50 as of 8:00 a.m.

Shares of the Mumbai-based stock exchange fell as much as 5.27 percent to Rs 881 after it reported December quarter earnings.

Key earnings highlights:

  • Consolidated net profit down 44.8 percent At Rs 18.77 crore versus Rs 34 crore
  • Consolidated revenue down 11 percent At Rs 60.97 crore versus Rs 68.60 crore crore

Indian rupee extended losses and broke below crucial psychological level of 64 per dollar. The local unit fell as much as 0.82 percent, the most in nearly a month to 64.01, its lowest level since, Dec. 29.

  • HCL Technologies: The Noida-based IT outsourcing firm rose over 5 percent to Rs 955 after Morgan Stanley in a report said Indian IT industry is expected to turnaround in 2018. It also upgraded the stock to ‘Overweight’ from ‘equal-weight’ and raised its target price to Rs 1,060.
  • ICICI Lombard: The Mumbai-based general insurance company rose more than 7 percent to Rs 844.80 on the back of strong December quarter earnings. Its gross domestic premium income (GDPI) rose 17.8 percent to Rs 2937 crore versus Rs 2,494 crore and combined ratio improved to 96 percent versus 106.6 percent.
  • Trigyn Technologies: The Mumbai-based IT services company rose as much as 12.4 percent, the most in over a month, to Rs 159.50 after it secured contract from ARIPO, Zimbabwe to provide technical support.
  • EIH Ltd: Hotel stocks were buzzing in trade today. The stock gained for fifth day in a row and it has so far in the month of January soared 49.5 percent.

Shares of the Delhi-based cable TV operator fell as much as 4 percent to Rs 133.80 after it reported loss in December quarter.

Key earnings highlights:

  • Consolidated loss at Rs 3.17 crore versus loss of Rs 44.96 crore (YoY)
  • Revenue up 9.8 percent at Rs 328.2 crore versus Rs 298.8 crore loss (YoY)
  • Consolidated EBITDA up 56.5 percent At Rs 78.7 crore versus Rs 50.3 crore (YoY)
  • Consolidated margin at 24.0 percent versus 16.8 percent (YoY)

Shares of the Delhi-based broadcasting company fell 4.5 percent to Rs 62.50 after it reported December quarter earnings.

Key earnings highlights:

  • Consolidated profit down 18.3 percent at Rs 16.06 crore versus Rs 19.65 crore (YoY)
  • Consolidated revenue up 8.5 percent at Rs 271 crore versus Rs 250 crore (YoY)
  • EBITDA down 6.7 percent at Rs 32.42 crore versus Rs 34.75 crore (YoY)
  • Margin at 12 percent versus 13.9 percent (YoY)

  • Indian equity benchmarks held on to losses and rupee fell to its lowest level in nearly three weeks after trade deficit widened to its highest level in more than three years as higher imports of gold and crude weighed on exports, according to trade data released by the government.
  • Losses were capped as IT heavyweights like Infosys, TCS and Wipro were trading higher on account rupee depreciation and Morgan Stanley expecting turnaround in the IT sector.
  • The S&P BSE Sensex fell 0.14 percent to 34,794 and the NSE Nifty 50 Index declined 0.3 percent or 32 points to 10,709.
  • Barring the S&P BSE IT Index all sector gauges compiled by BSE were trading lower led by the S&P BSE Realty Index's 2.6 percent drop. At the same time the S&P BSE IT Index was the top sectoral gainer, up 3.5 percent.

International brokerage house expects Indian IT industry to turnaround in 2018.

Morgan Stanley in a report said:

  • A cyclical rally could be in the offing
  • Expect large deal wins in traditional outsourcing, infra management and BPO segments
  • Expect rebound in BFSI and retail segment
  • Expect significant scale up in digital deals

Shares of the hotel operators were trading higher in an otherwise subdues session.

  • EIH Ltd jumps 16.7 percent
  • Indian Hotels up 3.58 percent
  • EIH Associated Hotels up 10.2 percent
  • Hotel Leela Venture up 1.77 percent
  • Taj GVK Hotels up 5.2 percent
  • Oriental Hotels up 12.6 percent
  • Royal Orchid Hotels up 6.7 percent
  • Asian Hotels North up 5 percent
  • Advani Hotels & Resorts up 4.86 percent

Shares of the country's largest IT outsourcing firm were trading 3.7 percent higher at Rs 2,848. The company has introduced digital subscription platform on Microsoft Azure.

Shares of the Mumbai-based investment management company rose 1.9 percent to Rd 332 after it reported December quarter earnings.

Key earnings highlights

  • Consolidated net profit at Rs 130 crore versus Rs 104 crore (YoY)
  • Consolidated revenue at Rs 409 crore versus Rs 328 crore (YoY)
  • To Pay Rs 5 per share interim dividend
  • AUM up 17 percent at Rs 3.88 lakh crore (YoY)

  • Power grid Corporation has 27 lakh shares change hands in a block.
  • Federal Bank has 46 lakh shares change hands at Rs 106.90 per share on the BSE.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

Shares of the Mumbai-based transformer maker were locked in a 5 percent upper circuit at Rs 128 after it won an order for manufacturing turbines for Germany’s Smart Hydro Power GmbH for a period of 20 years.

Shares of the mid-cap cement makers surged in an otherwise subdued session after a report suggested that Rakesh Jhunjhunwala and Radhakishan Damani have teamed up for the race to acquire Binani Cement.

  • Prism Cement jumps 10.18 percent
  • Heidelberg Cement jumps 9.2 percent
  • Orient Cement up 3.3 percent

Shares of the Mumbai-based electrical motors and transformers maker rose as much as 4.19 percent to Rs 1,435 as company is set to receive Rs 46.79 crore from MIDC towards acquisition of land situated at Navi Mumbai.

Shares of the Pune-based IT company rose as much as 3.26 percent to Rs 561.50 after it announced partnership with Israel's ContextSpace for cybersecurity.

Tel Aviv, Israel's financial and technological hub, will be the nerve centre for the programme and will focus on creating collaborative solutions across cyber security, fintech, mobility, artificial intelligence and data analytics.

Shares of the Gujarat-based agricultural chemicals maker fell as much as 7 percent to Rs 502.45 after it indefinitely closed its TDI-II plant at Dahej following leakage, the company said in a stock exchange filing.

Shares of the Kerala-based private sector lender fell as much as 6.87 percent to Rs 105.80 after its non-performing assets slightly rose in the December quarter.

key earnings highlights:

  • Net interest income up 20.1 percent at Rs 950 crore.
  • Net profit up 26.2 percent at Rs 260 crore.
  • Gross NPA at 2.52 percent versus 2.39 percent (QoQ).
  • Net NPA at 1.36 percent versus 1.32 percent (QoQ).

Shares of the Mumbai-based cement maker were locked in a five percent upper circuit at Rs 146.25 as billionaires Rakesh Jhunjhunwala and Radhakishan Damani teamed to bid for its debt-laden Binani Cement which is facing bankruptcy proceedings from its lenders, The Economic Times newspaper reported citing two senior executives in the know of matter.

Shares of the West Bengal-based wagon maker rose as much as 3.14 percent to Rs 182.15 after it won order for 2,338 wagons, DNA newspaper reported.

  • Nifty January futures trading at 10,743, premium of 1.8 points from 5 points.
  • January series: Nifty open interest up 4 percent; Bank Nifty open interest up 18 percent.
  • India VIX ended at 14.3, up 4.2 percent.
  • Maximum open interest for January series at 11,000 Call (open interest at 47.9 lakh, up 1 percent).
  • Maximum open interest for January series at 10,500 Put (open interest at 82.2 lakh, up 1 percent).
  • F&O Ban

    • In ban: Capital First, Dish TV, Fortis, GMR Infrastructure, HDIL, IFCI, Jet Airways, Jindal Steel & Power, Jain Irrigation, JP Associates, Kaveri Seed, Reliance Communications, Reliance Capital, Reliance Power and Wockhardt.
    • New in ban: Capital First and IFCI.

    Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.

    Put-Call Ratio

    • Nifty PCR at 1.78 from 1.74.
    • Nifty Bank PCR at 1.31 from 1.06.

Newgen Software Technologies issue opens today at Rs 240-245 per share (Here’s all you need to know about the IPO).

  • JVL Agro Industries circuit filter revised to 10 percent.
  • Fiberweb India’s last trading day before ex-bonus.
  • SJVN last trading day to determine buyback eligibility.
  • Singer India last trading day before stock split.

  • ICICI Lombard General Insurance
  • MCX
  • Reliance Nippon Life Asset Management
  • Agro Tech Foods
  • Den Networks
  • Hatsun Agro Products
  • Jay Bharat Maruti
  • Network 18
  • SH Kelkar
  • TV18

  • Earnings season ramps up: Taiwan Semiconductor Manufacturing Co., ASML Holdings NV, Bank of America Corp. and Goldman Sachs Group Inc. are among some notable releases.
  • Industrial production in the U.S. probably increased in December, a report may show Wednesday, completing a solid year for manufacturing.
  • U.S. housing starts probably slipped in December for the first time in three months as frigid winter weather impeded work, forecasts show ahead of Thursday’s release.
  • The Bank of Canada’s interest-rate decision comes Wednesday. Monetary policy announcements are also this week due in South Korea, South Africa and Turkey.
  • China releases fourth quarter GDP, December industrial production and retail sales Thursday.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.

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