Sensex Closes Nearly 200 Points Lower; Nifty Ends Near Two-Month Low Ahead Of Budget

Shares of Tech Mahindra fluctuated between gains and losses to trade 0.9 percent higher at Rs 799 after the company announced December quarter results.

Key Earnings Highlights (Q3, QoQ)

• $ Revenue up 7.3 percent to $1,353 million (Estimate: $ 1,330 millon)
• Revenue up 6.4 percent to Rs 9,655 crore (Estimate: Rs 9,655 crore)
• EBIT up 8.4 percent to Rs 1,179 crore. (Estimate: Rs 1,183 crore)
• EBIT Margin at 12.2 percent versus 12 percent (Estimate: Rs 12.5 percent)

Indiabulls Real Estate

• Stock hit their upper circuit of 5 percent at Rs 106.85.
• Board gives in-principle proposal of merger of commercial assets and residential assets of Embassy Group with company.
• Embassy Group is in discussion with financial investors such as Blackstone Group to raise $200mn before merger.
• Merged arm will be the development arm for commercial and residential assets.
• Merger Swap Ratio to be fixed at later date.

Nesco

• Stock rose as much as 6.6 percent to Rs 770.
• Company at debt free levels and brokerages expect stable cash flows coming to the company
• Management Commentary was positive for Bombay Exhibition Centre and new I.T. buildings.

Century Textiles & Industries

• Stock rose as much as 7.2 percent to Rs 656.90.
• Fresh longs seen with high open interest of 21 percent.
• Trading volume was three times its 20-day average.

V-Guard

• Stock rose as much as 3.7 percent to Rs 231 after announcing December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenue up 5.4 percent to Rs 626.6 crore.
• Net profit up 27.3 percent to Rs 42.9 crore.
• Ebitda up 32 percent to Rs 59.4 crore.
• Margin at 9.5 percent versus 7.6 percent.

Shares of Oil & Natural Gas Corporation fell as much as 7.7 percent to Rs 106.75, the lowest since March 6, 2009.

About 11 lakh shares of the company changed hands in a large trade at around 10 a.m., Bloomberg data showed. Buyers and sellers were not known immediately.

Trading volume was almost six times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be oversold.

Security & Intelligence Services

• Stock fell as much as 10.9 percent to Rs 479.90.
• Trading volume was more than 17 times its 20-day average.

Star Cement

• Stock fell as much as 4.2 percent to Rs 83.20.
• Trading volume almost 17 times its 20-day average.

3M India

• Stock rose as much as 9.1 percent to Rs 24,139.90.
• Trading volume was more than 14 times its 20-day average.

NESCO

• Stock rose as much as 6.6 percent to Rs 770.
• Trading volume was nine times its 20-day average.

Shares of Indiabulls Real Estate hit their upper circuit of 5 percent at Rs 106.85.

The company plans to restructure its business and will merge certain assets of Bengaluru-based Embassy Property Developments, the real estate developer said in a statement to the exchanges.

“Under the proposed merger, certain ongoing, completed and planned residential and commercial projects of Embassy will get merged and stand transferred to Indiabulls Real Estate,” the statement read.

• Inflation witnessing moderation since 2014.
• Measures to safeguard farmers like procurement under Price Stabilisation Fund, Minimum Support Price need to be made more effective.
• Observed divergence between retail and wholesale prices in commodities in four metropolitan cities.
• Divergence particularly high for vegetables like onion and tomato.
• This may be due to the presence of intermediaries and high transaction costs.

Read to get up to speed:

• Economic Survey estimates India’s FY21 GDP growth at 6-6.5 percent.
• Economic Survey proposes Temasek-like structure to speed up divestment.

Catch all the live updates on Economic Survey 2020 here.

• Bharti Airtel: About 14.6 lakh changed hands in a large trade.
• Jindal Stainless: About 38.8 lakh shares changed hands in a large trade.

Buyers and sellers were not known immediately.
Source: Bloomberg

Coromandel International (Q3, YoY)

• Stock rose as much as 3.3 percent to Rs 641.45.
• Revenue up 7.5 percent to Rs 3,278.7 crore.
• Net profit up 71.4 percent to Rs 264.5 crore.
• Ebitda up 42.2 percent to Rs 432 crore.
• Margin at 13.2 percent versus 10 percent.

V-Guard (Q3, YoY)

• Stock rose as much as 3.7 percent to Rs 231.
• Revenue up 5.4 percent to Rs 626.6 crore.
• Net profit up 27.3 percent to Rs 42.9 crore.
• Ebitda up 32 percent to Rs 59.4 crore.
• Margin at 9.5 percent versus 7.6 percent.

State Bank Of India Q3 Results: Profit Beats Estimates; Asset Quality Improves

Shares of Arvind fluctuated between gains and losses to trade 1.2 percent lower at Rs 42 after the company announced its December quarter results.

Key Earnings Highlights (Q3, YoY)

• Revenues up 11.2 percent to Rs 1,868.8 crore.
• Net profit down 10.7 percent to Rs 35.8 crore.
• Ebitda up 24 percent to Rs 185.5 crore.
• Margin at 9.9 percent versus 8.9 percent.
• Other income down 47 percent to Rs 14.2 crore.

Shares of Marico fell for the second consecutive trading session. The stock fell as much as 4.4 percent, the most since Oct. 29, 2019, to Rs 323, their lowest since Nov. 2, 2018.

The company announced its December quarter results post yesterday’s close.

Key Earnings Highlights (Q3, YoY)

• Revenue fell 2 percent to Rs 1,824 crore. (Estimate: Rs 1,858 crore)
• Net profit rose 10 percent to Rs 276 crore. (Estimate: Rs 268 crore)
• Ebitda rose 3.9 percent to Rs 373 crore. (Estimate: Rs 378 crore)
• Margin stood at 20.4 percent versus 19.3 percent. (Estimate: 20.3 percent)

Asian stocks headed toward posting their worst week since May, while European futures rose as investors weigh the short-term economic damage of the coronavirus against increasingly decisive moves to contain the epidemic.

• Japan’s Topix Index was up 0.6 percent at the 3 p.m. close in Tokyo, after jumping as much as 1.5 percent earlier.
• Kospi Index slumped 1 percent.
• Euro Stoxx 50 futures gained 0.8 percent.
• Futures on the S&P 500 Index were little changed.
• FTSE China A50 futures climbed 1 percent.
• Hang Seng Index slid 0.2 percent.

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Source: Bloomberg

Nifty’s 12,200 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Feb. 6, rose 6.8 percent to Rs 86.85. About 4.86 lakh shares were added to the open interest which stood at over 16.35 lakh shares.

Marico (Q3, YoY)

• Stock fell as much as 2.2 percent to Rs 330.25.
• Revenue fell 2 percent to Rs 1,824 crore. (Estimate: Rs 1,858 crore)
• Net profit rose 10 percent to Rs 276 crore. (Estimate: Rs 268 crore)
• Ebitda rose 3.9 percent to Rs 373 crore. (Estimate: Rs 378 crore)
• Margin stood at 20.4 percent versus 19.3 percent. (Estimate: 20.3 percent)

Amber Enterprises (Q3, YoY)

• Stock rose as much as 9.2 percent to Rs 1,635.
• Revenue rose 52.2 percent to Rs 788.4 crore. (Estimate: Rs 568.9 crore)
• Net profit rose 6 times to Rs 22.6 crore. (Estimate: Rs 9.4 crore)
• Ebitda rose 87.2 percent to Rs 54.3 crore. (Estimate: Rs 54.3 crore)
• Margin stood at 6.9 percent versus 5.6 percent (Estimate: 6.3 percent)

JK Tyre & Industries (Q3, YoY)

• Stock fell as much as 6.3 percent to Rs 73.15.
• Revenue fell 19.4 percent to Rs 2,199.8 crore.
• Net profit fell 58.8 percent to Rs 11 crore.
• Ebitda fell 7.9 percent to Rs 244.1 crore.
• Margin stood at 11.1 percent versus 9.7 percent.

Bharat Electronics (Q3, YoY)

• Stock fell as much as 8.9 percent to Rs 91.70.
• Revenue fell 16.8 percent to Rs 2,278.1 crore.
• Net profit fell 56.8 percent to Rs 222.7 crore.
• Ebitda fell 53.6 percent to Rs 356.7 crore.
• Margin stood at 15.7 percent versus 28.1 percent.

Persistent Systems (Q3, QoQ)

• Stock rose as much as 3.9 percent to Rs 716.
• $ Revenue rose 3.1 percent to $129.43 million.
• Revenue rose 4.3 percent to Rs 922.7 crore.
• Net profit rose 2.2 percent to Rs 87.9 crore.
• EBIT rose 1.9 percent to Rs 80.7 crore.
• Margin stood at 8.7 percent versus 9 percent.

Equitas Holdings (Q3, YoY)

• Stock swung from a gain of as much as 6.4 percent from a fall of as much as 3.7 percent.
• Net interest income rose 21.7 percent to Rs 410.7 crore.
• Net profit rose 46.7 percent to Rs 78.5 crore.
• Advances rose 37 percent to Rs 14615 crore.
• GNPA at 2.86 percent versus 2.86 percent QoQ.
• NNPA at 1.73 percent versus 1.63 percent QoQ.

Laurus Labs (Q3, YoY)

• Stock rose as much as 5.6 percent to Rs 459.95.
• Revenue rose 37.8 percent to Rs 729.6 crore.
• Net profit rose 4.1 times to Rs 73.5 crore.
• Ebitda rose 68.8 percent to Rs 148.2 crore.
• Margin stood at 20.3 percent versus 16.6 percent.

MCX (Q3, YoY)

• Stock fell as much as 3.1 percent to Rs 1,237.05.
• Revenue rose 16.1 percent to Rs 89.3 crore.
• Net profit rose 32.4 percent to Rs 55.6 crore.
• Ebitda rose 87.6 percent at Rs 39.2 crore.
• Margin stood at 43.9 percent versus 27.2 percent.

Shares of SRF extended gains for the eighth consecutive trading session and are set for their longest gaining streak in over three months.

The stock rose as much as 1.2 percent to hit an all-time high at Rs 3,849.

The Relative Strength Index on the stock was above 70, indicating that the stock may be overbought. The scrip advanced 87 percent in the past 12 months compared to a 15 percent gain in the Sensex.

India Favors Subsidy Cuts to Expand Fiscal Room

Shares of Wipro extended declines for the second consecutive trading session and fell as much as 2.3 percent to Rs 235.20.

The Bengaluru-based Managing Director and Chief Executive Officer Abidali Neemuchwala steps down due to family commitment. Neemuchwala will hold office till a new successor is appointed.

Trading volume was more than two times its 20-day average, Bloomberg data showed. The scrip traded at 14 times its 20-day average.

RBI, Kotak Mahindra Bank Reach Agreement On Promoter Shareholding Tussle

• Mahindra & Mahindra Financial Services to meet BofA Securities on Jan. 31

• Stampede Capital, Metalyst Forgings to move into ASM Framework.
• Alkali Metals to move into short term ASM Framework.
• Greenpanel Industries, Prakash Steelage to move out of short term ASM Framework.
• Sundaram Multi Pap price band revised to 10 percent.
• MT Educare price band revised to 5 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.06 percent to 71.44 against the greenback.

• Motherson Sumi Systems: Board gave in-principle approval for reorganisation of business within the group which will demerge domestic wiring harness business of the company into a newly formed legal entity with mirror shareholding, which shall be listed. Board also approved a proposal to merge 49 percent stake held by Samvardhana Motherson International in Samvardhana Motherson Automotive Systems Group into the company.
• REC, PFC: The proposed merger of REC with Power Finance Corporation hit a roadblock and is not likely to happen in near future as it would violate RBI norms on the exposure of non-banking financial companies, PTI reported quoting sources.
• Nocil: Board approved the merger of promoter entities Suremi and Sushripada into the company. Both these entities hold 17.95 percent stake in the company. Pursuant to the scheme, there will be no change in shareholding of promoter group and public shareholders.
• Oriental Carbon & Chemicals said that the first phase of Insoluble Sulphur Plant and Sulphuric Acid Plant are expected to be commissioned on schedule by end of March 2021.
• PNC Infratech said that its bid for EPC contract in Haryana worth Rs 639 crore stands cancelled, as NHAI has re-invited bids for the said project from eligible contractors. The company was the lowest bidder when it received the contract.
• Strides Pharma: Board approved the merger of the company’s wholly-owned arm Vivimed Life Sciences with self.
• Shriram City Union Finance: Board approved the establishment of U.S. Global Medium-Term Notes Program for a maximum limit of up to $2 billion for fundraising via the issue of foreign currency debt or rupee-denominated bonds overseas to foreign (global) investors.
• Wipro: CEO and MD Abidali Neemuchwala steps down due to family commitment. He will hold office till a new successor is appointed.

JLR

• Revenue rose 2.8 percent at 6,400 million pounds.
• Margin stood at 10.8 percent versus 7.3 percent.
• Net profit at 372 million pounds.
• China retail sales grew rose by 24.3 percent thereby increasing revenue.

Bharti Infratel (Q3, QoQ)

• Revenue rose 1 percent to Rs 3,673 crore. (Estimate: Rs 3,646 crore)
• Net Profit fell 17.1 percent to Rs 799 crore. (Estimate: Rs 791 crore)
• Ebitda was flat at Rs 1877 crore versus Rs 1,878 crore. (Estimate: Rs 1899 crore)
• Margin stood at 51.1 percent versus 51.6 percent. (Estimate: 52.1 percent)

Marico (Q3, YoY)

• Revenue fell 2 percent to Rs 1,824 crore. (Estimate: Rs 1,858 crore)
• Net profit rose 10 percent to Rs 276 crore. (Estimate: Rs 268 crore)
• Ebitda rose 3.9 percent to Rs 373 crore. (Estimate: Rs 378 crore)
• Margin stood at 20.4 percent versus 19.3 percent. (Estimate: 20.3 percent)

Amber Enterprises (Q3, YoY)

• Revenue rose 52.2 percent to Rs 788.4 crore. (Estimate: Rs 568.9 crore)
• Net profit rose 6 times to Rs 22.6 crore. (Estimate: Rs 9.4 crore)
• Ebitda rose 87.2 percent to Rs 54.3 crore. (Estimate: Rs 54.3 crore)
• Margin stood at 6.9 percent versus 5.6 percent (Estimate: 6.3 percent)

JK Tyre & Industries (Q3, YoY)

• Revenue fell 19.4 percent to Rs 2,199.8 crore.
• Net profit fell 58.8 percent to Rs 11 crore.
• Ebitda fell 7.9 percent to Rs 244.1 crore.
• Margin stood at 11.1 percent versus 9.7 percent.

Bharat Electronics (Q3, YoY)

• Revenue fell 16.8 percent to Rs 2,278.1 crore.
• Net profit fell 56.8 percent to Rs 222.7 crore.
• Ebitda fell 53.6 percent to Rs 356.7 crore.
• Margin stood at 15.7 percent versus 28.1 percent.

Persistent Systems (Q3, QoQ)

• $ Revenue rose 3.1 percent to $129.43 million.
• Revenue rose 4.3 percent to Rs 922.7 crore.
• Net profit rose 2.2 percent to Rs 87.9 crore.
• EBIT rose 1.9 percent to Rs 80.7 crore.
• Margin stood at 8.7 percent versus 9 percent.

Equitas Holdings (Q3, YoY)

• Net Interest Income rose 21.7 percent to Rs 410.7 crore.
• Net profit rose 46.7 percent to Rs 78.5 crore.
• Advances rose 37 percent to Rs 14615 crore.
• GNPA at 2.86 percent versus 2.86 percent QoQ.
• NNPA at 1.73 percent versus 1.63 percent QoQ.

Laurus Labs (Q3, YoY)

• Revenue rose 37.8 percent to Rs 729.6 crore.
• Net profit rose 4.1 times to Rs 73.5 crore.
• Ebitda rose 68.8 percent to Rs 148.2 crore.
• Margin stood at 20.3 percent versus 16.6 percent.

MCX (Q3, YoY)

• Revenue rose 16.1 percent to Rs 89.3 crore.
• Net profit rose 32.4 percent to Rs 55.6 crore.
• Ebitda rose 87.6 percent at Rs 39.2 crore.
• Margin stood at 43.9 percent versus 27.2 percent.

• The Budget Session of Parliament begins today with the President's address. Finance Minister Nirmala Sitharaman will table the economic survey in Parliament at noon.
• The government will release annual estimate GDP data for 2018-19.
• India to release fiscal deficit data for April-December period.
• Government to release eight infrastructure industries data for December.

• U.S. stocks advanced and bonds retreated after the World Health Organization stepped up efforts to combat the deadly coronavirus by declaring an international health emergency.
• Oil recovered in Asian trade after the World Health Organization said trade and travel restrictions were not necessary in response to the spread of coronavirus.

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