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Sensex Clocks Longest Winning Streak In Over A Month Led By RIL

Sensex Clocks Longest Winning Streak In Over A Month Led By RIL
A bronze bull statue stands at the entrance to the Bombay Stock Exchange (BSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
7 years ago
Catch all the live updates of share prices, index moves, corporate announcements and more from Indian equity markets.

Shares of the Udaipur-based zinc miner fell as much as 2.92 percent to Rs 266.45 as its profit declined in December quarter.

Key earnings highlights:

  • Revenue at Rs 5,540 crore versus Rs 5,922 crore (YoY)
  • Net profit down 3.78 percent at Rs 2,211 crore versus Rs 2,298 crore (YoY)

Shares of the Mumbai-based public sector lender fell as much as 5.24 percent, the most in over four months, to Rs 87.65 after its profit missed Bloomberg consensus estimates in December quarter.

Key earnings highlights:

  • Net interest income down 2.1 percent at Rs 2,494 crore versus Rs 2,548 crore (YoY)
  • Net profit at Rs 153.21 crore versus loss of Rs 1,249.85 crore (YoY); Bloomberg estimate of Rs 309 crore
  • Other income at Rs 1,095 crore versus Rs 873.1 crore (YoY)
  • Provisions at Rs 2,139 crore versus Rs 1,710 crore (QoQ)
  • Gross non-performing assets at 15.66 percent versus 15.74 percent (QoQ)
  • Net non-performing assets at 8.27 percent versus 8.42 percent (QoQ)

  • Shriram City Union Finance: The Chennai-based consumer finance company fell as much as 1.15 percent to Rs 1,753. Trading volume was almost 60 times its 20-day average.
  • Gujarat Pipavav: The Mumbai-based shipping port operator fell as much 2.71 percent to Rs 90. Trading volume was more than nine times its 20-day average.
  • JK Cement: The Kanpur-based cement maker rose as much as 2.4 percent to Rs 751. Trading volume was seven times its 20-day average.
  • Linde India: The Kolkata-based oxygen maker rose as much as 10.47 percent to Rs 678. Trading volume was six times its 20-day average.

Shares of the Delhi-based commercial finance company rose as much as 10.85 percent, the most in over four months, to Rs 47.50 after its reported December quarter earnings.

Key earnings highlights:

  • Revenue from operation at Rs 1,310 crore versus Rs 1,075 crore (YoY)
  • Net profit up 27 percent at Rs 328 crore versus Rs 258.68 crore (YoY)

  • EID Parry has 10 lakh shares change hands in a block deal. Stock down 5.6 percent at Rs 201.40.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

Shares of the Uday Kotak-led bank recovered from intraday low levels and rose as much as 0.85 percent to Rs 1,251 after its profit rose and asset quality improved in December quarter.

Key earnings highlights:

  • Net profit up 23 percent at Rs 1,291 crore versus Rs 1,053.21 crore. (YoY)
  • Net interest income up 23 percent at Rs 2,939 crore versus Rs 2,394 crore. (YoY)
  • Gross non-performing assets as a percentage of total advances at 2.07 percent versus 2.15 percent. (QoQ)
  • Net non-performing assets as a percentage of total advances at 0.71 percent versus 0.81 percent (QoQ)
  • Writes back provision of Rs 32.30 crore versus provisioning for bad loans of Rs 353.80 crore in the previous quarter.

Nifty's 11,000 strike price call contract was among the most active option contracts on the National Stock Exchange.

Premium on the contract surged 34 percent to Rs 100.45. Over 1.47 lakh shares were added to the open interest which stood at over 37.45 lakh shares.

  • NTPC has 17.5 lakh shares change hands in a block deal. Stock down 0.6 percent at Rs 143.30.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

Indian equity benchmarks extended gains led by Reliance Industries, HDFC Bank, Infosys and TCS.

The Sensex rose 0.80 percent or 290 points to 36,677 and the NSE Nifty 50 Index climbed 0.67 percent or 73 points to 10,980.

Twelve of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Energy Index's 2.2 percent gain. On the flipside, S&P BSE Realty Index was top loser, down 0.71 percent.

Mid- and small-cap shares were underperforming their larger peers as the S&P BSE MidCap Index was trading flat while the S&P BSE SmallCap Index declined 0.2 percent.

Shares of the Uday Kotak-led private lender declined as much as 1.42 percent to Rs 1,222.65 ahead of December quarter earnings.

Here's what to expect from the bank in December quarter (Bloomberg consensus estimates):

  • Net interest income seen rising 10 percent to Rs 2,633 crore versus Rs 2,394 crore (YoY).
  • Net profit seen rising 13 percent to Rs 1,190 crore versus Rs 1,053 crore (YoY).
  • Gross non-performing assets seen coming at 2.1 percent as a percentage of total advances.
  • Net non-performing assets seen coming at 0.8 percent as a percentage of total advances.

Shares of the Mumbai-based private lender fell as much as 3.44 percent to Rs 56.20 after it allotted 82.76 crore shares to Life Insurance Corporation of India at Rs 60.73 each, thereby completing the insurer’s 51 percent stake purchase in the bank, IDBI Bank said in a stock exchange filing.

  • IDBI board has also approved reclassification of LIC as promoter or main shareholder of the bank
  • On Dec. 28, IDBI allotted 2.39 billion shares to LIC, raising Rs 14,500 crore.
  • On Nov. 14, IDBI said Life Insurance Corporation of India will inject a total of Rs 20,000crore in the bank.
  • Meanwhile, Rakesh Sharma will continue as CEO until new CEO is found.

Shares of the Mumbai-based advanced pharmaceutical ingredients maker rose as much as 12.58 percent, the most since June 2018, to Rs 166.90 on the back of heavy volumes.

Trading volume was more than 14 times its 20-day average, according to data compiled by Bloomberg.

As many as 5.72 lakh shares changed hands on the BSE compared with an average of 1.75 lakh shares traded daily in the past two weeks, as per information on BSE's website.

Shares of the Bengaluru-based communication equipment maker rose as much as 10.17 percent to Rs 115 after its signed purchase order worth Rs 1,011.41 crore, ITI said in an exchange filing.

ITI signed contract with Gujarat Fibre Grid Network for implementing BharatNet Phase II project in Gujarat. Of the total order, Rs 190 crore is towards operation and maintenance for three years.

Shares of the Kerala-based private sector lender fell as much as 8.36 percent, the most in four months, to Rs 14.25 after its non-performing assets rose in December quarter.

Key earnings highlights:

  • Net interest income up 2.2 percent at Rs 520 crore versus Rs 509 crore
  • Net profit down 27 percent at Rs 83.85 crore versus Rs 115 crore
  • Gross non-performing assets as a percentage of total advances at 4.88 percent versus 4.61 percent (QoQ)
  • Net non-performing assets as a percentage of total advances at 3.54 percent versus 3.16 percent (QoQ)

The stock was the second best performer on Sensex and Nifty.

Shares of the Mumbai-based lender fluctuated between gains and losses to trade a little changed at Rs 2,129.55.

The bank’s profit rose 20.3 percent on a yearly basis to Rs 5,585.9 crore during the three months ended December, according to its stock exchange filing (Read the full story here)

Key earnings highlights (Q3, YoY)

  • Net interest income up 21.9 percent to Rs 1,2576 crore.
  • Net profit up 20.3 percent to Rs 5,585.9 crore.
  • Core net interest margin seen at 4.3 percent.
  • GNPA at 1.38 percent versus 1.33 percent (QoQ).
  • Net NPA at 0.42 percent versus 0.40 percent (QoQ).

Here’s what analysts had to say after the company announced its quarterly results:

JPMorgan

  • Maintained ‘Overweight’ with a price target of Rs 2,400.
  • December quarter review: in-line earnings; loan growth at 24 percent remains solid.
  • Term deposit strategy paying off well.
  • Overall asset quality steady; Agri showing some stress.

Edelweiss

  • Maintained ‘Buy’; hiked price target to Rs 2,530 from Rs 2,454.
  • Core operating performance strong, but asset quality slips a tad.
  • GNPL rose to 1.38 percent, with slippages higher at 2.1 percent, largely impacted by agri segment.
  • Due to challenges in operating environment, expect a flight to safety in favour of private banks.

Emkay

  • Maintained ‘Buy’; hiked price target to Rs 2,600 from Rs 2,500.
  • Healthy margins/fees; falling cost-to-income ratios.
  • Marginally higher NPAs due to farm-loan waivers.
  • Bank expects farm loan NPAs to remain high in run-up to general elections.

BQ Edge | Why You Should Keep An Eye On Biocon’s Stock This Week

F&O Cues
  • Nifty January futures closed trading at 10927, premium of 20 points.
  • Max open interest for January series at 11,000 strike value call (open interest at 35.9 lakh shares).
  • Max open interest for January series at 10,700 strike value put (open interest at 37.5 lakh shares).

Stocks In F&O Ban

  • Adani Power
  • Jet Airways

Put-Call Ratio

  • Nifty PCR at 1.56 versus 1.52.
  • Nifty Bank PCR at 1.14 versus 1.09.

On L&T Buyback

CLSA

  • SEBI rejects buyback; no set-back to ROE expansion.
  • Believe the regulator is mistaken in looking at consolidated financials.
  • Think L&T’s board could approve a one-time large dividend of Rs 53 per share this week.
  • Recommend buying L&T as it is a good proxy for domestic capex.

JPMorgan

  • Denial by SEBI on the technicality of leverage comes as a negative surprise.
  • Hardly any leeway to scale down the buyback size; could fund buyback with E&A sale proceeds.
  • Better than expected core P&L performance in Q3 may assuage worries around execution.

On HDFC Bank

JPMorgan

  • Maintained ‘Overweight’ with a price target of Rs 2,400.
  • December quarter review: in-line earnings; loan growth at 24 percent remains solid.
  • Term deposit strategy paying off well.
  • Overall asset quality steady; Agri showing some stress.

Edelweiss

  • Maintained ‘Buy’; hiked price target to Rs 2,530 from Rs 2,454.
  • Core operating performance strong, but asset quality slips a tad.
  • GNPL rose to 1.38 percent, with slippages higher at 2.1 percent, largely impacted by agri segment.
  • Due to challenges in operating environment, expect a flight to safety in favour of private banks.

Emkay

  • Maintained ‘Buy’; hiked price target to Rs 2,600 from Rs 2,500.
  • Healthy margins/fees; falling cost-to-income ratios.
  • Marginally higher NPAs due to farm-loan waivers.
  • Bank expects farm loan NPAs to remain high in run-up to general elections.

On Wipro

Macquarie

  • Maintained ‘Outperform’; hiked price target to Rs 360 from Rs 350.
  • December quarter results was around the margin beat; expect margin normalisation to continue.
  • Revenue growth to remain below industry due to uncertainty in the healthcare business.
  • Hike EPS estimates for FY19-21 by 1-2 percent.

CLSA

  • Maintained ‘Sell’; hiked price target to Rs 295 from Rs 285.
  • Successive sharp margin beat led by PDD reversal and subcontractor decline.
  • Hike EPS estimates for FY19-21 by 4-6 percent.
  • Retain Sell given lack of convincing growth acceleration.

Motilal Oswal

  • Maintained ‘Neutral’; hiked price target to Rs 385 from Rs 350.
  • Improving gradually on revenues, steadfastly on margins.
  • Q4 guidance factors in macro uncertainty.
  • Hike EPS estimates for the next two financial years by 5 percent.

On SBI Life Insurance

Citi

  • Maintained ‘Buy’; hiked price target to Rs 760 from Rs 700.
  • December quarter review: Strong protection growth, persistency steady.
  • Improving productivity of banca and agency channel should sustain growth.
  • SBI Life made MTM provision for investment depreciation, which could reverse.

Emkay

  • Maintained ‘Buy’ with a price target of Rs 830.
  • New business powers strong December quarter show.
  • Protection segment remains the key focus area.
  • New bancassurance tie-ups to further strengthen distribution network.

More Calls

Citi on L&T Infotech

  • Maintained ‘Buy’; hiked price target to Rs 2,100 from Rs 2,045.
  • Strong December quarter; remains our top mid-cap pick.
  • EBIT margin rose due to an increase in offshore mix and better utilisation.
  • Premium valuations to sustain given strong visibility and good execution.

Citi on AU Small Finance

  • Maintained ‘Sell’; hiked price target to Rs 535 from Rs 490.
  • December quarter review: Healthy book growth, slower income.
  • Growth from retail; margins down but incremental spreads rising.
  • Non-interest income hitch; CASA ratio lower but more granular.

  • Philips Carbon Black: FID FDS Mauritius sold 10.3 lakh shares or 0.60 percent equity at Rs 186.64 each.
  • Pitti Engineering: Bank of Baroda sold 3.45 lakh shares or 1.16 percent equity at Rs 64.57 each.

Nifty Earnings To Watch
  • Kotak Mahindra Bank

Other Earnings To Watch

  • Bhageria Industries
  • Gallantt Ispat
  • HDFC Asset Management Company
  • GHCL
  • Hindustan Zinc
  • Housing & Urban Development Corporation
  • IRB InvIT Fund
  • Just Dial
  • L&T Finance Holdings
  • Union Bank of India
  • Zensar Technologies
  • Supreme Petrochem
  • Gallantt Ispat
  • Sundaram Finance Holdings
  • Sasken Technologies
  • Pondy Oxides & Chemicals
  • Monnet Ispat & Energy
  • Kopran
  • Coromandel International

Also Read: Lupin, Sun Pharma, Glenmark Recall Products In The U.S.

Earnings Reaction To Watch

Wipro (Q3, QoQ)

  • Dollar revenue up 1.8 percent at $2046.5 million.
  • Revenue up 3.4 percent at Rs 15,059 crore.
  • Net Profit up 34.9 percent at Rs 2,544 crore.
  • EBIT up 43 percent at Rs 2,775.7.
  • Margin at 18.4 percent versus 13.3 percent.
  • The company also announce bonus shares of one share for three shares held in the company.

Also Read: Q3 Results: Wipro Profit Beats Estimate, Announces Bonus Shares

Zee Learn (Q3, YoY)

  • Revenue up 2.2 times at Rs 112.7 crore.
  • Net profit up 80.5 percent at Rs 13.9 crore.
  • Ebitda up 66.7 percent at Rs 30 crore.
  • Margin at 26.6 percent versus 34.5 percent.
  • Other Income of Rs 8.4 crore.

SBI Life Insurance (Q3, YoY)

  • Net Premium Income up 35 percent at Rs ,9141.3 crore.
  • Net Profit up 15 percent at Rs 264 crore.

ICICI Lombard General Insurance (Q3, YoY)

  • Gross Direct Premium Income up 25.9 percent at Rs 3,699 crore.
  • Net Profit up 3.2 percent at Rs 239 crore.

South Indian Bank (Q3, YoY)

  • Net interest income up 2.2 percent at Rs 520 crore versus Rs 509 crore
  • Net profit down 27 percent at Rs 83.85 crore versus Rs 115 crore
  • Gross non-performing assets as a percentage of total advances at 4.88 percent versus 4.61 percent (QoQ)
  • Net non-performing assets as a percentage of total advances at 3.54 percent versus 3.16 percent (QoQ)

Omax Autos (Q3, YoY)

  • Revenue down 26.5 percent at Rs 227.18 crore.
  • Net profit at Rs 1.58 crore versus net loss of Rs 1.49 crore.
  • Ebitda up 17.5 percent at Rs 11.4 crore.
  • Margin at 5 percent versus 3.1 percent.
  • Deferred tax credit of Rs 245 crore for the quarter under review.

HDFC Bank (Q3, YoY)

  • Net interest income up 21.9 percent to Rs 1,2576 crore.
  • Net profit up 20.3 percent to Rs 5585.9 crore.
  • Core net interest margin seen at 4.3 percent.
  • GNPA at 1.38 percent versus 1.33 percent (QoQ).
  • Net NPA at 0.42 percent versus 0.40 percent (QoQ).

Also Read: Q3 Results: HDFC Bank’s Profit Meets Estimates

Vodafone Idea Seeks Two-Year Moratorium On Spectrum Payment

  • The Bloomberg Commodity Index gained 1.2 percent Friday to a five-week high.
  • Brent crude traded 0.43 percent lower at $62.43 per barrel.
  • West Texas Intermediate crude slipped 0.8 percent to $53.39 a barrel.
  • Also Read: Oil Hasn’t Started a Year This Hot Since the Turn of the Century

    London Metal Exchange

    • Aluminium ended 0.65 percent higher.
    • Tin ended higher for the second day, up 0.19 percent.
    • Nickel halted a two-day blip, up 1.98 percent.
    • Copper ended higher for the fourth day, up 1 percent.
    • Lead ended 1.78 percent higher.
    • Zinc ended higher for the third day, up 1.3 percent.

China’s Economy Slows to Weakest Pace Since 2009 Amid Trade War

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