Nifty Clocks Longest Losing Streak In Nearly Five Months; Yes Bank Rallies 31%

Indian equity benchmarks ended lower led by the declines in Reliance Industries Ltd. and HDFC Bank Ltd.

The S&P BSE Sensex Index closed 0.44 percent or 157 points lower at 35,876.22 and the NSE Nifty 50 Index ended below 10,750, down 0.44 percent.

The 31-share index clocked its longest losing streak since Sept. 05, 2018 and the 50-stock index clocked its longest losing streak Sept. 24, 2018.

The market breadth was tilted in favour of sellers. About 875 stocks declined and 936 shares advanced on National Stock Exchange.

Eight out of eleven sectoral gauges compiled by NSE advanced, led by the NSE Nifty Media Index's 3.9 percent rally. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 1.1 percent.

Gabriel India (Q3, YoY)

• Stock fell as much as 5.8 percent to Rs 139.25.
• Net profit at Rs 22 crore versus Rs 21.53 crore.
• Revenue at Rs 510 crore versus Rs 541.53 crore.

Kaveri Seeds (Q3, YoY)

• Stock fell as much as 8.5 percent to Rs 467.20.
• Revenue down 6 percent to Rs 67 crore.
• Net profit down 33 percent to Rs 3.6 crore.
• Ebitda down 97 percent to Rs 0.2 crore.
• Margin at 0.3 percent versus 13.6 percent.

Ashok Leyland (Q3, YoY)

• Stock rose as much as 10.4 percent to Rs 87.10.
• Revenues down 12 percent to Rs 6325 crore.
• Net profit down 21 percent to Rs 381 crore.
• Ebitda down 22 percent to Rs 650 crore.
• Margin at 10.3 percent versus 11.7 percent.

Sadbhav Engineering (Q3, YoY)

• Stock fell as much as 4.4 percent to Rs 165.60.
• Net profit at Rs 56.25 crore versus Rs 61.82 crore
• Revenue at Rs 925.53 crore versus Rs 839.36 crore.

NCL Industries (Q3, YoY)

• Stock rose as much as 3.6 percent to Rs 97.
• Net profit at Rs 6.5 crore versus Rs 13.71 crore.
• Revenue at Rs 241.18 crore versus Rs 222.72 crore.

United Breweries (Q3, YoY)

• Stock rose as much as 1.3 percent to Rs 1,413.
• Revenue up 21 percent to Rs 1,451.2 crore.
• Net profit up 130.4 percent to Rs 109.2 crore.
• Ebitda up 62.4 percent to Rs 247.8 crore.
• Margin at 17.1 percent versus 12.7 percent.

Oracle Financial Services

• Stock fell as much as 9 percent to Rs 3,471.05.
• Trading volume was eight times its 20-day average.

NBCC India

• Stock fell as much as 8.4 percent to Rs 47.20.
• Trading volume was more than five times its 20-day average.

Indian Oil

• Stock fell as much as 4.9 percent to Rs 123.55.
• Trading volume was more than triple its 20-day average.

Rain Industries

• Stock fell as much as 10 percent to Rs 90.50.
• Trading volume was almost triple its 20-day average.

Jain Irrigation

• Stock rose as much as 8.3 percent to Rs 55.30.
• Trading volume was double its 20-day average.

The Indian rupee weakened further against the U.S. dollar. The home currency depreciated as much as 71.17 against the greenback.

Page Industries reported a profit of Rs 102 crore in the three months ended December, an increase of 23 percent from the year ago period, according to its stock exchange notification.

Key Earnings Highlights (YoY)

• Revenue up 19 percent to Rs 738 crore.
• Ebitda up 28 percent to Rs 165 crore.
• Margin at 22.4 percent versus 20.8 percent.

Shares of the company fell as much as 2.4 percent to Rs 23,806.25 on NSE after the results announcement.

Brent crude extended rally for the third consecutive trading session and is currently trading above $64.5 a barrel, its highest level since November 2018.

Shares of DHFL erased losses and rose as much as 18.1 percent to Rs 131.35. The stock had declined 6.5 percent during the opening trade.

Trading volume was 2.3 times its 30-day average, Bloomberg data showed.

Shares of CG Power & Industrial Solutions Rose as much as 25.8 percent today, its biggest ever intraday gain, to Rs 29.05. The stock had clocked its worst single-day fall yesterday after slumping nearly 30 percent.

Trading volume was 27.1 times its 30*day average, Bloomberg data showed.

The NSE Nifty Metal Index fell for the second consecutive day, led by the declines in Hindalco Industries and Coal India.

Mahindra & Mahindra Ltd. launched new XUV300 model today.

“Expectations from XUV300 is very high at Mahindra. We are not only providing a good-looking product, but also a good performing car,” Anand Mahindra, chairman of Mahindra Group, told reporters at an event, adding that he expects XUV300 will excite customers and ignite demand moving ahead.

The company’s Managing Director Pawan Goenka expects the growth for utility vehicle segment to be in line-to-marginally-higher than the auto sector. “We expects sales of 9000 units per month from the new launches including XUV300 and Marazzo,” Goenka said.

• Indian equity benchmarks traded at day’s low.
• The S&P BSE Sensex Index fell over 150 points to 35,880 and the NSE Nifty 50 Index traded 0.5 percent lower at 10,738.65.
• About 1020 stocks declined and 641 shares advanced on NSE.

Shares of Eicher Motors fluctuated between gains and losses to trade nearly 1 percent higher at 23,045.

A certain section of employees in Royal Enfield plant has resorted to an ‘illegal strike’ despite the company’s best efforts and positive intentions, the company said in a statement on the exchanges.

“We have been working closely with our workforce and have undertaken various constructive and confidence building initiatives,” the statement added.

Inflation based on wholesale prices stood at 2.76 percent in January from 3.8 percent, clocked in the preceding month.

VA Tech Wabag secured order worth Rs 520 crore from Jajmau Tannery Effluent Treatment Association, according to its stock exchange filing.

“The scope of the contract includes engineering, supply, erection, construction and commissioning of 20 MLD Tertiary Treatment Plant over a period of 24 months,” the statement said.

Shares of the sewage treatment plant builder rose as much as 3.4 percent to Rs 299 apiece on NSE.

Nifty’s 10,800 option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 79.67 percent to Rs 7.50. Over 21 lakh shares were added to the open interest which stood at over 28 lakh shares.

Shares of ONGC declined for the fifth day and fell as much as 2.5 percent to Rs 130.10 ahead of the company’s results announcement.

Here’s what analysts tracked by Bloomberg expects the company to report on an yearly basis in its December quarter earnings:

• Revenue seen 3 percent lower at Rs 27,068 crore.
• Ebitda seen 6 percent lower at Rs 14,785 crore.
• Margin seen at 54.6 percent versus 56.4 percent.
• Net Profit seen 9 percent lower at Rs 7,485 crore.
• Net realisations seen at $66.83per barrel versus $73.1 per barrel.

Shares of oil marketing companies extended their fall as Brent crude continued to gain for the third consecutive day.

Gulf Oil Lubricants (Q3, YoY)

• Stock fell as much as 0.9 percent to Rs 883.10.
• Revenue up 29.8 percent to Rs 462 crore.
• Net profit up 17.2 percent to Rs 49.8 crore.
• Ebitda up 18.7 percent to Rs 73 crore.
• Margin at 15.8 percent versus 17.3 percent.
• Declared dividend of Rs 4.5 per share.

Fortis Healthcare (Q3, YoY)

• Stock fell as much as 1.1 percent to Rs 133.
• Revenue down 1.6 percent to Rs 1103.3 crore.
• Net loss to Rs 197.1 crore versus net loss to Rs 36.8 crore.
• Ebitda down 26.4 percent to Rs 38 crore.
• Margin at 3.4 percent versus 4.6 percent.
• Finance costs up 76 percent to Rs 111 crore.
• Exceptional loss of Rs 127.7 crore due to impairment of goodwill and impairment of closure of one hospital facility.

Lemon Tree Hotels (Q3, YoY)

• Stock fell as much as 2 percent to Rs 71.50.
• Revenue up 8.3 percent to Rs 143.4 crore.
• Net profit up 38.9 percent to Rs 12.5 crore.
• Ebitda up 14.7 percent to Rs 49.1 crore.
• Margin at 34.2 percent versus 32.3 percent.

Oracle Financial Services (Q3, QoQ)

• Stock fell as much as 8.9 percent to Rs 3,474.60.
• Revenue down 2.3 percent to Rs 1,185.9 crore.
• Net profit down 13.1 percent to Rs 306 crore.
• Ebitda up 0.2 percent to Rs 499.6 crore.
• Margin at 42.1 percent versus 41.1 percent.
• Other income of Rs 49.6 crore in base quarter.

Quick Heal Technologies (Q3, YoY)

• Stock fell as much as 1.5 percent to Rs 178.80.
• Revenue up 3.6 percent to Rs 65.9 crore.
• Net profit up two times to Rs 16.1 crore.
• Ebitda up 59.1 percent to Rs 21 crore.
• Margin at 31.9 percent versus 20.8 percent.
• Higher other expenses of Rs 24.4 crore in base quarter.
• Other income up 73 percent to Rs 9 crore.

Prabhat Dairy (Q3, YoY)

• Stock fell as much as 4.7 percent to Rs 54.30.
• Revenue up 14.6 percent to Rs 463 crore.
• Net profit down 32.4 percent to Rs 10 crore.
• Ebitda flat to Rs 37.5.
• Margin at 8.1 percent versus 9.3 percent.
• Stock purchases up 7 times to Rs 49.8 crore.
• Decrease in inventory for Rs 27.5 crore.

NBCC (Q3, YoY)

• Stock fell as much as 8.4 percent to Rs 47.20.
• Revenue up 29.3 percent to Rs 2,438.8 crore.
• Net profit up 22.4 percent to Rs 83.6 crore.
• Ebitda down 16.1 percent to Rs 70.8 crore.
• Margin at 2.9 percent versus 4.5 percent.
• Other Expenses up 66 percent to Rs 34 crore.

Reliance Capital (Q3, YoY)

• Stock rose as much as 3.3 percent to Rs 143.90.
• Revenue down 11 percent to Rs 568 crore.
• Net profit of Rs 89 crore versus net loss of Rs 603 crore.
• Refund of expenses worth Rs 31 crore seen in December quarter as against an expense of Rs 676 crore incurred last year.

Shares of Karur Vysya Bank fell as much as 20 percent, the most since May 2004 on NSE, to Rs 63.20.

The company had reported its quarterly earnings for the three months ended December on Feb. 12, where its profit fell 70 percent on a yearly basis to Rs 21.20, according to its stock exchange filing.

Trading volume was 116.4 times its 30-day average, Bloomberg data showed.

Here are the highlights from BloombergQuint's conversation with Karur Vysya Bank's Managing Director and CEO PR Seshadri:

• Exposure to NBFC is arguably among the smallest amongst the banks
• Our aim is to build a balance sheet where NPA accretion is approximately 1.5 percent.
• The NPA were higher in Q4 on account of IL&FS exposure and due to one of the the watchlist items, that we had given in November 2017.

Shares of DHFL fell as much as 6.5 percent to Rs 103.95.

Public sector lender Bank of Baroda has initiated a forensic audit of loans to Dewan Housing Finance Corporation Ltd., after news website Cobrapost alleged that the company has re-routed loan funds back to promoter group entities, according to three people in the know.

Besides, the company’s chief executive officer Harshil Mehta has decided to step down from his position with immediate effect.

The Relative Strength Index was at 22, indiacating that the stock may be oversold, Bloomberg data showed.

Shares of the Mumbai-based bank jumped as much as 29.98 percent, the most since July 2005, to Rs 220.25. The stock was the best performer on Sensex and Nifty.

The private lender received Reserve Bank of India’s compliance assessment report for 2017-18, according to its stock exchange notification. The report stated that there is no divergence in asset classification and provisioning as per the country’s central bank norms.

Trading volume was almost six times its 20-day average, Bloomberg data showed. The stock had declined 49 percent in the past 12 months compared to an 5.1 percent advance in the Sensex.

Here’s what brokerages had to say about Yes Bank.

Indian equity benchmarks opened lower in today’s trade.

The S&P BSE Sensex Index fell as much as 0.24 percent to 36,948 and the NSE Nifty 50 Index fell as much as 0.31 percent to 10,760.20.

The market breadth was tilted in favour of sellers. About 915 stocks declined and 515 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Metal Index’s 0.98 percent decline. On the flipside, the NSE Nifty FMCG Index was the top sectoral gainer, up 0.24 percent.

The Indian rupee weakened in the opening trade against the U.S. dollar. The home currency depreciated as much as 0.28 percent to 71 against the greenback.

F&O Cues

• Nifty February futures closed trading at 10823, premium of 30 points.
• Max open interest for February series at 10,900 call (open interest at 21.7 lakh shares).
• Max open interest for February series at 10,800 put, (open interest at 7.2 lakh shares).

Stocks In F&O Ban

In Ban

• IDBI
• Jet Airways
• Reliance Capital
• Reliance Infrastructure

New In Ban

• Jain Irrigation

Out Of Ban

• DHFL

Put-Call Ratio

• Nifty PCR at 1.29 versus 1.35.
• Bank Nifty PCR at 0.72.

CLSA on Bharat Forge

• Maintained ‘Sell’ with a price target of Rs 420.
• Good quarter, but weak outlook.
• See cyclical pressures ahead.
• Fall in commodity prices poses risk to industrial exports.

CLSA on J Kumar Infra

• Maintained ‘Buy’ with a price target of Rs 315.
• December quarter review: Net profit ahead; execution and new orders see upgrades.
• Triggers: resolution of SEBI issue, marked pick-up in execution and resumption of order inflow.
• Inexpensive play on high-growth urbanisation Capex.

Macquarie on Yes Bank

• Maintained ‘Outperform’ with a price target of Rs 270.
• Nil divergence – a very big positive; a significant overhang disappears.
• Reinforces our conviction that asset quality is fine.
• Focus now moves to the new CEO.

JPMorgan on Fortis Healthcare

• Maintained ‘Overweight’ with a price target of Rs 180.
• Ebitda impacted by one-offs; Hospital margin recover but SRL growth remains sluggish.
• Completion of IHH deal and RHT asset acquisition will shift focus on the medium-term turnaround plan.
• Expect one-offs to impact near-term results, but margin trend to build confidence on earnings.

UBS on Indian Energy Exchange

• Initiated ‘Buy’ with a price target of Rs 215.
• Attractive on all counts; See catalysts for both near and long term.
• Key growth drivers are backed by structural changes.
• Multiple other levers could aid earnings and lead to high option value.

UBS on Bosch

• Maintained ‘Sell’ with a price target of Rs 15,500.
• December quarter review: Weak core performance; Net profit supported by other income.
• Do not expect BS-VI to be game changer.
• Management remains cautious on Q4 demand as dealer inventory levels were high.

HSBC on Indian AMCs

• Fund industry is growing strongly and has great potential.
• Sector continues to benefit from shifts in savings patterns.
• Biggest disruption for the industry could be in distribution.

HSBC on Reliance Nippon

• Initiated ‘Buy’ with a price target of Rs 217.
• Well positioned to grow in more profitable equity segment.
• Distribution is core strength for the group.
• Inter-corporate deposits are a concern.

HSBC on HDFC AMC

• Initiated ‘Hold’ with a price target of Rs 1,300.
• Quality franchise with an individual focus.
• Will be more impacted by TER cut than RNAM.
• Valuations appear full; Dividend pay-out ratio lower than RNAM.

• SREI Infra Finance: Norges Bank acquired 30.15 lakh shares or 0.60 percent equity at Rs 25.29 each.
• Zee Media Corporation: IFCI sold 30 lakh shares or 0.64 percent equity at Rs 14.07 each.
• Teamlease Services: Goldman Sachs AMC sold 90,500 shares or 0.53 percent equity at Rs 2,898.2 each.

• Coal India, Indian Energy Exchange ex-date for share buyback.
• Jindal Stainless to move into short term ASM Framework.
• Mangalam Drugs and Organics price band revised to 10 percent.

Nifty Earnings To Watch

• Oil & Natural Gas Corporation

Other Earnings To Watch

• Ashok Leyland
• JK Tyre & Industries
• Infibeam Avenues
• GlaxoSmithKline Consumer Healthcare
• Glenmark Pharmaceuticals
• Voltas
• Williamson Magor
• GMR Infrastructure
• GVK Power & Infrastructure
• Eveready Industries
• Sadbhav Engineering
• Finolex Cables
• La Opala RG
• APL Apollo Tubes
• Shree Renuka Sugars
• United Breweries
• Sreeleathers
• Apollo Tricoat Tubes
• Bharat Dynamics
• Bharat Rasayan
• Cerebra Integrated Technologies
• Cox & Kings
• Dalmia Bharat Sugar and Industries
• Deepak Fertilizers and Petrochemicals Corporation
• Mcleod Russel
• Mishra Dhatu Nigam
• National Peroxide
• Nesco
• Nestle India
• Forbes & Company
• Gabriel India
• Texmo Pipes and Products
• Housing Development and Infrastructure
• IFCI
• India Glycols
• India Tourism Development Corporation
• Kaveri Seed Company
• Kitex Garments
• Kohinoor Foods
• Liberty Shoes
• Mahanagar Telephone Nigam
• Orient Refractories
• S Chand And Company
• Vipul

Earnings Reaction To Watch

Gulf Oil Lubricants (Q3, YoY)

• Revenue up 29.8 percent to Rs 462 crore.
• Net profit up 17.2 percent to Rs 49.8 crore.
• Ebitda up 18.7 percent to Rs 73 crore.
• Margin at 15.8 percent versus 17.3 percent.
• Declared dividend of Rs 4.5 per share.

Fortis Healthcare (Q3, YoY)

• Revenue down 1.6 percent to Rs 1103.3 crore.
• Net loss to Rs 197.1 crore versus net loss to Rs 36.8 crore.
• Ebitda down 26.4 percent to Rs 38 crore.
• Margin at 3.4 percent versus 4.6 percent.
• Finance costs up 76 percent to Rs 111 crore.
• Exceptional loss of Rs 127.7 crore due to impairment of goodwill and impairment of closure of one hospital facility.

Lemon Tree Hotels (Q3, YoY)

• Revenue up 8.3 percent to Rs 143.4 crore.
• Net profit up 38.9 percent to Rs 12.5 crore.
• Ebitda up 14.7 percent to Rs 49.1 crore.
• Margin at 34.2 percent versus 32.3 percent.

Oracle Financial Services (Q3, QoQ)

• Revenue down 2.3 percent to Rs 1,185.9 crore.
• Net profit down 13.1 percent to Rs 306 crore.
• Ebitda up 0.2 percent to Rs 499.6 crore.
• Margin at 42.1 percent versus 41.1 percent.
• Other income of Rs 49.6 crore in base quarter

Quick Heal Technologies (Q3, YoY)

• Revenue up 3.6 percent to Rs 65.9 crore.
• Net profit up two times to Rs 16.1 crore.
• Ebitda up 59.1 percent to Rs 21 crore.
• Margin at 31.9 percent versus 20.8 percent.
• Higher other expenses of Rs 24.4 crore in base quarter.
• Other income up 73 percent to Rs 9 crore.

Prabhat Dairy (Q3, YoY)

• Revenue up 14.6 percent to Rs 463 crore.
• Net profit down 32.4 percent to Rs 10 crore.
• Ebitda flat to Rs 37.5.
• Margin at 8.1 percent versus 9.3 percent.
• Stock purchases up 7 times to Rs 49.8 crore.
• Decrease in inventory for Rs 27.5 crore.

NBCC (Q3, YoY)

• Revenue up 29.3 percent to Rs 2,438.8 crore.
• Net profit up 22.4 percent to Rs 83.6 crore.
• Ebitda down 16.1 percent to Rs 70.8 crore.
• Margin at 2.9 percent versus 4.5 percent.
• Other Expenses up 66 percent to Rs 34 crore.

Reliance Capital (Q3, YoY)

• Revenue down 11 percent to Rs 568 crore.
• Net profit of Rs 89 crore versus net loss of Rs 603 crore.
• Refund of expenses worth Rs 31 crore seen in December quarter as against an expense of Rs 676 crore incurred last year.

• Yes Bank received the Reserve Bank of India’s compliance assessment report for 2017-18. The report states that there is no divergence in asset classification and provisioning as per the RBI norms.
• Ludlow Jute & Specialities, Cheviot: Cabinet approved raising MSP for raw jute by Rs 250 per quintal, or 6.75 percent, to Rs 3,950 per quintal for 2019-20.
• InterGlobe Aviation said that 49 flights were cancelled on Feb. 13. The airline company said that it has decided to curtail its schedule for the remaining period of February by approximately 30 flights a day to stabilise its operation and adjust its crew rosters due to anticipated weather conditions.
• Trident was granted the patent for ‘Air Rich Yarn and Fabric and its method of manufacturing’ by the U.S. Patent and Trademark Office.
• HIL said that the company commenced the second phase production of its soil, waste and rain pipes and fittings at its Gujarat plant. The additional capacity of 5250 MTPA will be added to this plant under the new phase of production.
• ABB India approved the segregation of company’s power grid business from the company’s other businesses.
• Dewan Housing Corporation’s Harshil Mehta resigned from the post of whole-time director (designated as Joint MD and CEO) with effect from Feb. 13. But the company stated that he will continue to be the executive president of the retail business from Feb. 14 onward.
• Fortis Healthcare appointed Vivek Kumar Goyal as CFO. The company says that the effective date of appointment shall be on or before May 1. The board also stated that Dr Ashutosh Raghuvanshi will become the CEO of the company with effect from March 18.
• Tata Power, in collaboration with AES and Mitsubishi Corporation, set up a 10MW energy storage system in Delhi. This system will provide better peak load management and system flexibility, the company said.
• IndusInd Bank approved establishing of euro medium term notes program for $1 billion. This program will provide the bank access to foreign currency funds and it will be listed on the Singapore Stock Exchange. The board also stated that it will raise up to Rs 3000 crore via debentures. The Bank will also participate in the rebidding process for IL&FS Securities.
• PSP Projects emerged as the lowest bidder for two construction projects in Rajasthan and Gujarat with a cumulative contract value of Rs 415.2 crores.
• Tata Group’s R. Venkataraman sought to relinquish his responsibilities as managing trustee of Tata Trusts on March 31. A panel of trustees has been setup to select the new chief executive.
• Pidilite Industries’ global arm set up a join venture in Kenya with Crown Classic. The Global arm will hold 55 percent of the stake in the JV, while the remaining stake will be held by Crown Classics.
• EID Parry, Balrampur Chini, Dhampur Sugar: Government may raise minimum selling price of a sugar by as much as 10 percent from Rs 29 per kg to Rs 32 per kg, a government official said.
• JSW Steel: Committee of Creditors of BPSL issued a Letter of Intent to JSW Steel. The closure of the transaction shall be subject to obtaining necessary approval from NCLT and satisfaction of conditions precedent under the resolution plan.

• 12 p.m.: India January Wholesale Prices Inflation YoY, Bloomberg estimates at 3.7 percent, prior 3.8 percent.
• Steven Mnuchin and Robert Lighthizer are in Beijing for high-level talks, and will meet China President Xi Jinping on Friday, the South China Morning Post reported.
• China’s exports probably fell again in January from a year earlier, but at a slower pace than in December.

• Brent crude gained for the third day, up 0.38 percent to $63.85 per barrel.
• West Texas Intermediate crude climbed 0.3 percent to $54.04 a barrel.
• Gold stabilized around $1,307.05 an ounce.

London Metal Exchange

• Aluminium ended lower for the sixth day, down 0.05 percent.
• Tin ended a two-day decline, ended 0.84 percent higher.
• Zinc ended lower for the fourth day, down 0.42 percent
• Copper halted a four-day decline, ended 0.3 percent.
• Nickel ended lower for the fourth day.
• Lead ended lower for the third day, down 0.74 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.26 percent to 10,774.50 as of 8:25 a.m.

Asian stocks saw mixed trading Thursday as investors awaited the outcome of high-level trade talks between the U.S. and China, and data on the Chinese economy.

Shares posted modest gains in Japan and Australia, and slipped in Hong Kong and Korea. Mainland Chinese equities were little changed after a rally on the Shanghai Composite Index from January lows hit 10 percent.

Short on time? well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell podcast.