Stock Market Today: Sensex, Nifty Marginally Lower As I.T., PSU Banks Offset Losses; FPIs Remain Net Sellers
Live updates on India's equity markets on Jan. 16.
KEY HIGHLIGHTS
FPIs Remain Net Sellers
Overseas investors remained net sellers of Indian equities for the 17th day in a row on Monday.
Foreign portfolio investors offloaded Indian stocks worth Rs 750.59 crore, according to data from the National Stock Exchange
Domestic institutional investors remained net buyers for the seventh day in a row and mopped up stocks worth Rs 685.96 crore, after snapping out of a 21-day buying streak on Jan. 5.
Foreign institutions net bought Rs 14,398.8 crore worth of Indian equities in December, but have remained net sellers of Rs 18,169.67 crore of Indian stocks so far in 2023.
Yield On The 10-Year Bond Rises
The yield on the 10-year bond closed higher at 7.33% on Monday. It closed at 7.30% on Friday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened for the first time in six sessions, as it depreciated by 28 paise to 81.62 at close on Monday. It closed at 81.34 on Friday.
Source: Bloomberg
Closing Bell
The Indian benchmark indices ended lower after a volatile day of trading on Monday.
Asian markets were mixed with Japanese Nikkei ending lower ahead of the Bank of Japan's policy announcement later this week. On the other hand, the European stocks opened higher and continued trading amid volatility on Monday.
The S&P BSE Sensex was down 168 points or 0.28% at 60,092.97 while the NSE Nifty 50 was 62 points or 0.34% lower at 17,894.85.
Tech Mahindra Ltd., HCL Technologies., Infosys Ltd., Wipro Ltd., and Hero MotoCorp Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Adani Enterprises Ltd., Axis Bank Ltd., JSW Steel Ltd., Hindustan Unilever Ltd., Apollo Hospitals Enterprise Ltd. and NTPC Ltd. were the top losers in the gauge.
The broader market indices were trading lower; S&P BSE MidCap was down 0.34%, whereas S&P BSE SmallCap was lower at 0.1%.
Fourteen out of the 19 sectoral indices compiled by the BSE declined, while five advanced.
The market breadth was skewed in favour of the bears. About 1,694 rose, 1,904 declined, 180 remained unchanged on the BSE.
GPT Infraprojects Jumps After Winning Rs 216-Crore Order From Maharail
Maharashtra Rail Infrastructure Development Corporation Ltd. signed a pact with GPT Infraprojects Ltd. for the construction of proposed extensions of Ghatkopar cable-stayed road over-bridge, connecting LBS Road junction and Eastern Expressway junction in Mumbai.
GPT Infraprojects Ltd. has been offered Rs 216-crore as per the contract.
Source: Exchange filing
Bank Of Maharashtra Advances After Q3 Earnings
Shares of Bank of Maharashtra surged 6.78% in trade on Monday.
The company's gross non-performing assets reduced to 2.94% in the December quarter, as compared to 3.4% in September quarter. The net profit stood at Rs 775 crore in the third quarter of the ongoing fiscal.
The net interest income stood at Rs 1,980 crore, up nearly 4.7% quarter-on-quarter from Rs 1,887 crore in the second quarter of current fiscal. However, the interest income was up 7.6% at Rs 4,129 crore in the third quarter.
The core operating profit, on the other hand, rose 7.5% quarter-on-quarter to Rs 1,580 in the December quarter as compared with Rs 1,462 in the September quarter.
It gained 8.68% intraday, the most in three weeks since Dec. 26. Total traded volume stood at 1.9 times its 30-day average.
The one analyst tracking the company maintains a 'buy' rating on the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 2.9% over the next 12 months.
Source: Bloomberg, Exchange filing
European Markets Open Higher
Viacom18 Wins Media Rights For Women’s IPL
Viacom18 has won the media rights for the Women’s IPL for Rs 951 crore for five years. (2023-27)
This translates to a per match value of Rs 7.09 crore.
Source: Jay Shah’s Twitter
Inox Leisure, PVR Decline In Trade
Shares of multiplexes, Inox Leisure Ltd. and PVR Ltd. declined in trade by 5.03% and 5.07% in trade, respectively.
Inox Leisure
Shares of Inox Leisure Ltd. fell as much as 5.18% intraday on Monday, the most it has fallen since Dec 23, 2022. Total traded volume stood at 1.3 times its 30-day average.
Out of the 21 analysts tracking the company, 20 maintain a 'buy' rating and one suggests 'hold' the stock. The return potential as calculated by the consensus of analyst estimates, stand at an upside of 33.6% over the next 12 months.
PVR
Similarly, shares of PVR Ltd. dropped 5.14% intraday, the most it has fallen since Sept. 16. Total traded volume stood at 1.5 times its 30-day average.
Out of the 31 analysts tracking the company, 27 maintain a 'buy' rating, two suggest 'hold' and two recommend to 'sell' the stock. The return potential as calculated by the consensus of analyst estimates, stand at an upside of 27.2% over the next 12 months.
Source: Bloomberg
Railway Stocks Under Pressure
Shares of railway-related companies declined in trade on Monday.
IRCTC Ltd., IRFC Ltd., Rail Vikas Nigam Ltd., Titagarh Wagons. and Ircon International declined in trade.
Source: Bloomberg
PSU Banking Stocks Advance
Shares of PSU banking companies advanced in trade on Monday as most sectors declined in trade.
The NSE Nifty PSU Bank Index was up 1.26%. Nine out of the 10 constituents compiled by the gauge advanced, while only Canara Bank declined.
UCO Bank, Indian Overseas Bank, Union Bank of India, Central Bank of India, Punjab and Sind Bank, Bank of Maharashtra rose more than 3% in trade.
Source: NSE
Delhivery Shares Gain The Most In Over A Month After Macquarie Initiates Coverage
Shares of logistics service provider Delhivery Ltd., gained the most in over a month after Macquarie initiated coverage on the stock, citing a strong position in the logistics sector.
Shares of the company rose 2.32% to Rs 317 apiece, while the benchmark Nifty 50 fell 0.31%. The total trade volume was 1.1 times its 30-day average.
Of the 18 analysts tracking the stock, 13 maintained 'buy', three suggested a 'hold', while two analysts recommended 'sell', according to Bloomberg data. The average 12-month consensus price target implied an upside of 39.1%.
The brokerage initiated coverage on the stock with an 'outperform' and a price target of Rs 440, with a "clear path to 100% in three years". The price target of Rs 440 implies an upside of 39.3%.
Source: Bloomberg, Brokerage note
Adani Enterprises Drags The Nifty 50 Gauge
Shares of Adani Enterprises Ltd. declined by 2.50% in trade on Monday. The stock was the top drag amongst the constituents of the benchmark index Nifty 50.
Total traded volume stood at 1.2 times its 30-day average.
Out of the two analysts tracking the company, one maintains a 'buy' rating and one suggest to 'hold' the stock.
The return potential as calculated by the consensus of analyst estimates stand at an downside of 3% over the next 12 months.
Source: Bloomberg
Midday Market Update
The Indian benchmark indices followed their Asian peers higher at open on Monday, but soon turned volatile to trade flat around midday.
On Friday, the U.S. markets logged their best performance since September. Last week, the headline indices logged weekly gain for the first time in 2023, as they declined in the first week of the year.
As of 12:07 pm, the S&P BSE Sensex was down 45 points or 0.08% at 60,215.97 while the NSE Nifty 50 was 34 points or 0.19% lower at 17,922.25.
Tech Mahindra Ltd., HCL Technologies., TCS Ltd., Wipro Ltd., and Infosys Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, Adani Enterprises Ltd., Eicher Motors Ltd., NTPC Ltd., Mahindra and Mahindra Ltd. and Axis Bank Ltd. were the top losers in the gauge.
The broader market indices were mixed; S&P BSE MidCap was down 0.09%, whereas S&P BSE SmallCap was higher at 0.12%.
Sixteen out of the 19 sectoral indices compiled by the BSE declined, while three advanced.
The market breadth was skewed in favour of the bulls. About 1,760 rose, 1,680 declined, 195 remained unchanged on the BSE.
L&T Finance Holdings Rises As Morgan Stanley Remains 'Equal-Weight' Rating
Shares of Larsen and Toubro Finance Holdings Ltd. rose in trade on Monday after Morgan Stanley rated the company as 'equal-weight' in its latest note.
As per the brokerage, the October-December quarter of the current fiscal was driven by the "broad-based" growth in retail loans and narrowing wholesale assets under management.
As of 11:11 am, the stock was up 3.41% in trade. It rose as much as 6.33% intraday in over three months or 15 weeks since Oct. 4, 2022.
Total traded volume stood at 7.4 times its 30-day average.
Out of the 13 analysts tracking the company, 10 maintain a 'buy' rating, two suggest 'hold' and one recommends to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an downside of 0.6% over the next 12 months.
Source: Bloomberg, Brokerage note
Sula Vineyards Advances In Trade
Shares of Sula Vineyards Ltd. advanced by 9.85% in trade on Monday, it rose the most since Dec. 26, intraday.
In the December quarter, the company's brand sales were up 13% YoY at Rs 187.2 crore. Whereas, the wine tourism business grew 23% YoY at Rs 23 crore.
Source: Bloomberg, Exchange filing
DMart Drops To Lowest In Six Months After Q3 Profit Misses Estimates
Shares of Avenue Supermarts Ltd., the parent of DMart chain of stores, fell the most in six months after the company's third-quarter revenue rose, but missed estimates.
Though the results were announced on Saturday, a market holiday, the company's shares fell as much as 6.1% to Rs 3,627 apiece. That's the most since May 6. This is also the stock's lowest level since July 5.
Of the 27 analysts tracking the company, eight maintain 'buy', nine suggest 'hold' and 10 recommend 'sell'. The return potential of the stock implies a upside of 8.9%.
Source: Bloomberg
Metals Decline
Stocks of metal companies declined in trade on Monday after a stellar last week.
The NSE Nifty Metal Index was 1.01% down. Nine out of the 15 constituents compiled by the gauge declined, five stocks advanced , while one was unchanged.
Jindal Steel and Power Ltd., JSW Steel Ltd., Steel Authority of India Ltd., Vedanta Ltd. and Tata Steel Ltd. fell nearly 1% in trade.
Source: NSE
Maruti Suzuki Hikes Prices Across Models
Maruti Suzuki has hiked prices across models by an estimated weighted average of 1.1%.
The company said this is an indicative figure calculated using ex-showroom prices of models in Delhi and will come into effect from Jan. 16.
The automaker had intimated about the hike in December.
Source: Exchange filing
Just Dial Locked In An Upper Circuit
Shares of Just Dial Ltd. advanced by 10% in early trade on Monday and was locked in an upper circuit at Rs 644.30.
Company's December quarter earnings beat analysts estimates as revenue and profits increased sequentially for the scrip.
Just Dial Q2 FY23 (Consolidated QoQ)
Revenues rose 7.85% at Rs 221.4 crore. (Bloomberg estimate: Rs 216.7 crore)
Ebitda increased 59.92% at Rs 27.2 crore vs Rs 17 crore
Ebitda Margin at 12.27% versus 8.28%
Net profit rose 44.4% at Rs 75.3 crore vs Rs 52.2 crore (Bloomberg estimate: Rs 42.6 crore)
The stock gained the most in intraday trade in eight months since April 12, 2022. Total traded volume stood at 17.9 times its 30-day average.
Out of the 12 analysts tracking the company, eight maintain a 'buy' rating, two suggest to 'hold' and two recommend to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates stand at an upside of 23% over the next 12 months.
Source: Bloomberg
Opening Bell
The Indian benchmark indices followed their Asian peers higher on Monday.
On Friday, the U.S. markets logged their best performance since September. Last week, the headline indices logged weekly gain for the first time in 2023, as they declined in the first week of the year.
The S&P BSE Sensex was up 289 points or 0.48% at 60,550.50 while the NSE Nifty 50 was 77 points or 0.43% higher at 18,033.15.
Bajaj Finserv Ltd., HDFC Life Insurance Co., HDFC Bank Ltd., IndusInd Bank Ltd., and Bajaj Finance Ltd. were the top gainers amongst the NSE Nifty 50 constituents.
Whereas, JSW Steel Ltd., BPCL Ltd., Nestle India Ltd., Coal India Ltd. and NTPC Ltd. were the top losers in the gauge.
The broader market indices were trading higher; S&P BSE MidCap was up 0.36%, whereas S&P BSE SmallCap was higher at 0.27%.
Fourteen out of the 20 sectoral indices compiled by the BSE advanced, while four declined.
The market breadth was skewed in favour of the bulls. About 1,781 rose, 837 declined, 153 remained unchanged on the BSE.
Yield On The 10-Year Bond Largely Flat
The yield on the 10-year bond opened largely flat at 7.31% on Monday. It closed t 7.30% on Friday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthens 8 paise to 81.26 at open on Monday. It closed at 81.34 on Friday.
Source: Bloomberg
Midcaps & Smallcaps Starting To Outperform | Trade Setup For Monday
Global Cues
U.S. Dollar Index at 102.18
U.S. 10-year bond yield at 3.50% on Friday
Brent crude down 0.35% to $84.98 per barrel
Nymex crude at $79.58 per barrel
SGX Nifty up 0.12% to 18,059.5 as of 8:15 a.m.
Bitcoin up 1.21% to $21,159.92
Pledge Share Details
Emami: Promoter group Diwaker Finvest revoked a pledge of 3.53 lakh shares between Dec.10 and Dec 12.
Bulk Deals
BCL Industries: Silvertoss Shoppers bought 3 lakh shares (1.24%) and Rollon Investment sold 3 lakh shares (1.24%) at Rs 414 apiece.
Stocks To Watch
Mahindra & Mahindra: The Mumbai bench of NCLT has approved the merger of Mahindra Electric Mobility with the company.
L&T Finance Holdings: The board approved the amalgamation of L&T Finance, L&T Infra Credit and L&T Mutual Fund Trustee with the company. The company appointed Vinay Chhawchharia as chief risk officer for two years, effective Jan. 13, 2023.
Karnataka Bank: The bank appointed Sekhar Rao as executive director for a period of three years.
State Bank of India: The bank hiked its one-year lending rate by 10 basis points to 8.4%, with effect from Jan. 15.
Waaree Renewable Technologies: The company signed a letter of award with one of India's leading construction company, for the execution of engineering, procurement, construction, and commissioning of a solar power project of 7 MWp DC capacity for their captive requirement along with three years of operation and maintenance work.
Tata Steel: The company said British Steel Pension Scheme with Tata Steel U.K. as sponsor has completed a substantial part of its de-risking journey with 60% of its liabilities now insured by an insurance company.
Tata Motors: The company filed Form 25 with the Securities and Exchange Commission to termination of its American Depository Share programme.
Whirlpool of India: The company appointed Narasimhan Eswar as managing director from April 4, 2023, for five years after the resignation of Vishal Bhola from the position.
Dr. Reddy’s Laboratories: The company acquired the trademark rights of the breast cancer drug Primcyv from Pfizer Products India for use in the Indian market.
Jet Airways: The Mumbai bench of NCLT approved transfer of the airline’s to the Jalan-Kalrock consortium.
HG Infra Engineering: The company received a letter of acceptance from Delhi Metro Rail Corp. for a project with estimated cost of Rs 399 crore.
Delhivery: The company completed the acquisition of Algorhythm Tech on Jan. 13.
Sula Vineyards: Sales Update Q3 FY23 (YoY):
-Own brand sales up 13% at Rs 187.2 crore
-Wine tourism business grew 23% at Rs 23 crore.
Lupin: U.S. FDA inspected Lupin’s Somerset, New Jersey, U.S.A. manufacturing facility from Jan. 2 to Jan. 13. The inspection closed with issuance of a Form-483 with two observations.
Aster DM Healthcare: Malabar Institute of Medical Sciences Ltd., a material subsidiary of Aster DM Healthcare Ltd. has entered into an agreement to acquire 99.99% stake in Cantown Infra Developers LLP on Jan. 14. Cost of acquisition is Rs 15.2 crore.
Earnings To Watch
Angel One
Federal Bank
JSW Ispat Special Products
Kesoram Industries
Bank of Maharashtra
Tinplate Company of India
Earnings Reaction To Watch
HDFC Bank Q3 FY23 (Consolidated YoY)
Net profit at Rs 12,259 crore versus Rs 10,342 crore. (Bloomberg estimate: Rs 11,815 crore)
Net interest income at Rs 22,987 crore, up 24.6%
Gross NPA at 1.23%
Net NPA at 0.33%
Total deposits up 19.9% to Rs 17.3 lakh crore.
Avenue Supermarts Q3 FY23 Key Highlights (YoY)
Net profit rose 7% to Rs 589.6 crore, missing analysts' estimates of Rs 699.3 crore.
Sequentially, it fell 14%. Operating profit rose 11% to Rs 965.3 crore against an estimated Rs 1,073.7 crore.
It rose 8% over the September quarter. Margin came in at 8.3% against 9.4% due to higher expenses.
It was lower than 8.4% in Q2 FY23.
Total expenses rose 27% to Rs 10,788.86 crore. Expenses were up 9% over the previous quarter.
Wipro Q3 FY23 (Consolidated QoQ)
Revenue rose 3.08% at Rs 23,230 crore. (Bloomberg estimate: Rs 23,346 crore)
EBIT rose 15.26% at Rs 3,624 crore. (Bloomberg estimate: Rs 3,481 crore)
EBIT margin at 15.6% versus 13.9% (Bloomberg estimate: 14.9%)
Net profit rose 15.7% to Rs 3,065 crore. (Bloomberg estimate: Rs 2,976 crore)
The board declared an interim dividend of Re 1 per share.
L&T Finance Holdings Q3 FY23 (Consolidated QoQ)
Revenues up 9.38% at Rs 3,432.5 crore. (Bloomberg estimate: Rs 1,907.3 crore)
Ebitda up 9.17% at Rs 2,076.3 crore
Ebitda margin at 60.49% vs 60.61%
Net profit up 11.62% at Rs 453.6 crore. (Bloomberg estimate: Rs 517.9 crore)
Just Dial Q2 FY23 (Consolidated QoQ)
Revenues rose 7.85% at Rs 221.4 crore. (Bloomberg estimate: Rs 216.7 crore)
Ebitda increased 59.92% at Rs 27.2 crore vs Rs 17 crore
Ebitda Margin at 12.27% versus 8.28%
Net profit rose 44.4% at Rs 75.3 crore vs Rs 52.2 crore (Bloomberg estimate: Rs 42.6 crore)
Raghav Productivity Enhancer Q3 FY23 (Consolidated YoY)
Revenue up 45% at Rs 33.78 crore.
Ebitda up 54% at Rs 9.3 crore.
Ebitda margin at 27.53% versus 25.8%
Net profit up 7% at Rs 6.6 crore.
Choice International Q3 FY23 (Consolidated QoQ)
Revenue up 43.07% at Rs 96.3 crore.
Ebitda up 9.79% at Rs 24.2 crore.
Ebitda margin at 25.15% versus 32.77%
Net profit up 2.92% at Rs 14.1 crore.
SGX Nifty Indicates Positive Opening For Stocks
Asian equities open the week with a tailwind from U.S. stocks closing at the highest in a month as easing inflation expectations fuel January’s global share rally.
At 8:15 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.12% to 18,059.5.
Indian stocks are in for a busy week with economic data, ongoing quarterly earnings, and foreign fund trading activity deciding the direction for investors.
The third quarter season has begun with big IT names, and this week market will react to the earnings of some major names, including HDFC Bank, IndusInd Bank, Asian Paints, JSW Steel, and HUL.
"Going ahead, with IT earnings out of the way, investors will now focus on the earnings of financials," said Vinod Nair, head of research at Geojit Financial Services.
Crude oil prices were cooling off as it was marginally down from the $85-mark. Bitcoin rose more than a percent over $21,000.
Overseas investors in Indian equities were net sellers for the 16th day in a row on Friday. Foreign portfolio investors offloaded stocks worth Rs 2,422.39 crore, while the domestic institutional investors mopped up stocks worth Rs 1,953.4 crore.
