MARKETS: Indices snap 3-day losing streak, Sensex up 271 pts; L&T gains 3%

Markets snapped three-day losing streak as stock-specific developments, Q3 result reactions, and low crude oil prices, which slipped over 1 per cent on Thursday, dominated the investor sentiment. Even as gains in heavyweights like Larsen and Toubro (L&T), Axis Bank, State Bank of India, Infosys and ICICI Bank provided the necessary support, equity markets remained volatile in a range-bound trade due to weekly expiry. 

Besides, expectations from the government to provide necessary fiscal stimulus, during Budget for FY21, to lift the economy supported trading activity. On Wednesday, Information and Broadcasting Minister Prakash Javadekar said the government would unveil its “plan of action” in the Budget to boost the economy, which is grappling with a slowdown. The Budget is scheduled to be presented on February 1. READ MORE

The S&P BSE Sensex closed settled near day's high, up 271 points, or 0.66 per cent, at 41,386.40 level. L&T (up over 3 per cent) was the top gainer on the benchmark index, followed by Bharti Airtel, SBI, Titan, and M&M (all up over 2 per cent each). On the other hand, Tech Mahindra, TCS, Bajaj Finance, and Reliance Industries were the top losers today.

On the NSE, the Nifty50 was above the 12,150-mark and closed 73.45 points, or 0.61 per cent, higher at 12,180.35 mark. Barring Nifty Media index (down 2 per cent), all the key sectoral indices on the NSE ended the day with gains, led by Nifty Realty index (up 2 per cent), and Nifty PSU Bank (1.16 per cent).

In the broader markets, the mid-caps continued to outperform the frontline indices. The S&P BSE mid-cap index edged a per cent higher to settle at 15,701.81 level. The S&P BSE small-cap index, on the other hand, closed 0.95 per cent higher at 14,772.32 level.

GLOBAL MARKETS

Asian shares tumbled on Thursday, led by the biggest slide in Chinese stocks in more than eight months, as investors grew more anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.07 per cent. Chinese shares suffered a steep 3.04 per cent loss, on course for their biggest daily decline since May 6, 2019, when US President Donald Trump’s threats of additional tariffs on Chinese goods roiled financial markets.

Shares in Hong Kong also took a beating, down 1.91 per cent, while Japan’s Nikkei stock index slid 0.99 per cent. Euro Stoxx 50 futures were down 0.4 per cent, suggesting European shares are also heading into a rough trading session.

In the commodities market, Brent Crude Futures were at $62.34 per barrel-mark, down 1.34 per cent, in the afternoon trade.

(With inputs from Reuters)

3:43 PM IST

3:43 PM IST

3:41 PM IST >> The S&P BSE Sensex closed settled near day's high, up 271 points, or 0.66 per cent, at 41,386.40 level. L&T (up over 3 per cent) was the top gainer on the benchmark index, followed by Bharti Airtel, SBI, Titan, and M&M (all up over 2 per cent each).  >> On the NSE, the Nifty50 was above the 12,150-mark and closed 73.45 points, or 0.61 per cent, higher at 12,180.35 mark. 

3:20 PM IST >> Net profit at Rs 237 cr >> Revenue at Rs 2075 cr >> NII at Rs 566 cr

3:04 PM IST

2:56 PM IST The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) rose 47.5 per cent year on year (YoY) at Rs 52 crore in Q3FY20. Consolidated net profit, meanwhile, more than doubled from Rs 6.9 crore to Rs 22.72 crore during the quarter. Operational revenue, too, grew 16.8 per cent YoY at Rs 433 crore. READ MORE

2:55 PM IST DLF is planning to invest around Rs 5,000 crore to build commercial projects in Chennai. The company will be developing 6.8 million sq ft space. The new project is DLF's fourth project in the city, said Mohit Gujral, CEO, DLF. READ MORE

2:47 PM IST State-owned ONGC has received bids for 50 out of the 64 small and marginal oil and gas fields it offered in a bidding round for raising production by involving private companies. As many as 12 companies made 28 bids for 50 fields at the close of bidding on January 17. READ MORE

2:41 PM IST

2:40 PM IST We maintain a Buy on Polycab, with a target of Rs 1,201 (16x/20x FY22e P/Es for W&C/FMEG). Strong FCF generation and rising return ratios support a further re-rating. Key risks: Volatile raw-material prices, slowdown in government spend on infra.

2:39 PM IST

LIVE UPDATES

Sectoral trends on NSE at close


Top gainers and losers on S&P BSE Sensex at close


Closing Bell

>> The S&P BSE Sensex closed settled near day's high, up 271 points, or 0.66 per cent, at 41,386.40 level. L&T (up over 3 per cent) was the top gainer on the benchmark index, followed by Bharti Airtel, SBI, Titan, and M&M (all up over 2 per cent each). 

>> On the NSE, the Nifty50 was above the 12,150-mark and closed 73.45 points, or 0.61 per cent, higher at 12,180.35 mark. 

Earnings Alert | PNB Housing Fin Q3

>> Net profit at Rs 237 cr

>> Revenue at Rs 2075 cr

>> NII at Rs 566 cr


Contribution to Sensex's gain today


Westlife Development zooms 18% on strong Q3 operational performance

The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) rose 47.5 per cent year on year (YoY) at Rs 52 crore in Q3FY20. Consolidated net profit, meanwhile, more than doubled from Rs 6.9 crore to Rs 22.72 crore during the quarter. Operational revenue, too, grew 16.8 per cent YoY at Rs 433 crore. READ MORE

After Gurugram, DLF eyes Chennai; to invest Rs 5,000 cr in and around city

DLF is planning to invest around Rs 5,000 crore to build commercial projects in Chennai. The company will be developing 6.8 million sq ft space. The new project is DLF's fourth project in the city, said Mohit Gujral, CEO, DLF. READ MORE

ONGC gets 28 bids for 50 gas fields in first offer involving private sector

State-owned ONGC has received bids for 50 out of the 64 small and marginal oil and gas fields it offered in a bidding round for raising production by involving private companies. As many as 12 companies made 28 bids for 50 fields at the close of bidding on January 17. READ MORE

BSE500 stocks that hit 52-week high today


BROKERAGE RADAR | Anand Rathi Shares on Polycab India

We maintain a Buy on Polycab, with a target of Rs 1,201 (16x/20x FY22e P/Es for W&C/FMEG). Strong FCF generation and rising return ratios support a further re-rating.

Key risks: Volatile raw-material prices, slowdown in government spend on infra.

Buzzing | Gujarat Gas hits life-time high at Rs 289.65


Buzzing | GSFC trades near 6-month high


State Bank of India at day's high


NEWS ALERT | PSUs don't have to pay any AGR dues to DoT: Dharmendra Pradhan, petroleum minister

>> AGR notice to PSUs sent my mistake

(As reported by CNBC Aawaz)

Bajaj Finance slips 1%


JSW Steel plans to raise up to Rs 1,000 crore through issuance of NCDs

The proceeds will be used to meet long-term working capital requirements, refinance existing debt, general corporate purpose and ongoing capital expenditure, the Sajjan Jindal-led company said in a filing to BSE. READ MORE


Earnings Alert | Canara Bank Q3 result

>> Net profit at Rs 329.6 cr, up 3.8% YoY

>> GNPA at Rs 36,,645 cr, down 5.3% QoQ

>> NNPA at Rs 21,338 cr, down 4.4% QoQ

>> GNPA ratio at 8.36%, down 32 bps QoQ

>> NNPA ratio at 5.05%, down 10 bps QoQ


Nifty sectoral indices at this hour


BROKERAGE RADAR | HDFC Securities on Balaji Amines

Given the uncertainty in the ramp up of Balaji Specialty Chemicals (BSCPL), muted earnings growth prospect, declining return ratios (ROE: 16.1/15.1/13.5%, RoIC: 22.5/21.7/18.8% in FY20E/21E/22E), we prefer Alkyl Amines over Balaji in the Amines space. Maintain BUY with a target price of Rs 490 (13x Dec-21E EPS).

BUZZING STOCK:: YES Bank zooms 6%


Asian Markets check

Asian shares tumbled on Thursday, led by the biggest slide in Chinese stocks in more than eight months, as investors grew more anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.07 per cent. Chinese shares suffered a steep 3.04 per cent loss, on course for their biggest daily decline since May 6, 2019, when US President Donald Trump’s threats of additional tariffs on Chinese goods roiled financial markets.
 
Shares in Hong Kong also took a beating, down 1.91 per cent, while Japan’s Nikkei stock index slid 0.99 per cent. Euro Stoxx 50 futures were down 0.4 per cent, suggesting European shares are also heading into a rough trading session.

BROKERAGE RADAR | ICICI Securities on VST Industries

With a wide presence at the lower price points and strong distribution of 1 million retail outlets, VST’s brand has been especially popular in West Bengal, Bihar, Uttar Pradesh, Andhra Pradesh and Telangana contributing nearly 60% of volumes. The company’s fundamentals are driven by a strong capital structure, steady cash flow and consistent dividend payment. With robust volume growth in 9MFY20 change in product mix towards high priced cigarettes, we maintain our BUY rating on the stock with a revised target price of Rs 5,200/share.

We will be India's largest renewable energy player in 2020: Adani Group

Adani said the group aims to become the world’s largest solar power entity by 2025, and the largest renewable power firm by 2030. “We feel confident we will be able to lead one of the fastest global carbon offsets,” he said. READ MORE
 

BROKERAGE RADAR | Emkay Global Financial Services on RBL Bank

We cut our earnings estimates for FY20/21/22 by ~28%/19%/20%, factoring in weak Q3 results, slowing credit growth and expected residual asset-quality stress recognition/provisioning in the near term. However, we believe that RoA normalization will begin from early FY21 and estimate RoA/RoE to improve to 1%/10% in FY21E and 1.2/12% in FY22E from 0.6%/6% in FY20E, led by better growth and lower LLP. Recent capital raise too improved the bank’s shock absorption capacity. Maintain Hold/UW in EAP with a TP of Rs 340 (based on 1.5x FY22E ABV vs. earlier of 1.3x Sep’21E ABV). Key risks to our call include higher-than-expected stress build-up in corporate/retail portfolio.

BUZZING STOCK:: Godrej Properties climbs 4%


Buzzing | Titan trades near day's high


BROKERAGE RADAR :: Anand Rathi Shares & Stock Brokers on L&T

Despite the lower-than-expected revenue growth in Q3, management retained its 12-15% growth guidance as a few large projects from Andhra Pradesh (partially), the Mumbai Coastal Road project and NCR will start contributing to revenue from Q4 FY20.In infra, a pick-up in execution is expected to lead to expanded margins. Further, margins in hydrocarbons and power are expected to improve in the core business due to the strong order backlog.

With a strong book, we believe that sales growth will be healthy and margins are likely to hold or improve. Further, monetisation of non-core assets will help the company release capital and improve return ratios. We maintain a Buy. 

Varun Beverages gains for 12th straight day, surges 7% to hit a new high

Shares of Varun Beverages (VBL), PespiCo’s India franchise, were trading higher for the 12th straight day, up 7 per cent at Rs 853 on the National Stock Exchange (NSE) on Thursday. The stock was trading at its new all-time high level on the bourses. Since January 8, the stock has rallied 23 per cent as latest shareholding pattern reveals that foreign portfolio investors' (FPIs) stake in VBL touched a new high of 19.35 per cent at the end of December 2019 quarter (Q3 FY20). In comparison, the benchmark Nifty 50 index has gained 1 per cent during the same period. READ MORE
 

AGR dues: OIL moves SC; Moody's says business conditions risky in India

OIL received demand notices for the period financial year 2007-08 (FY08) to FY19, including licence fee, penalties and interest, the company said in a statement.
 
OIL had taken this matter up with DoT and the Ministry of Petroleum & Natural Gas along with other affected central public sector enterprises (CPSEs) and explained the non-applicability of AGR to non-telecom companies. READ MORE

MARKET UPDATE:: Broader indices outperform benchmarks


MARKET UPDATE:: Sensex regains momentum


Buzzing | UPL hits 2-month low post I-T Dept raids


Rupee one of the worst performers among its Asian peers in the past 1 year

A sharp deceleration in economic growth and surge in inflation have begun to weigh on the rupee exchange rate. The Indian rupee has become one of the worst performers among its Asian peers in the past one year, with the exception of the South Korean won and the Pakistani rupee. The Indian rupee is down nearly 2 per cent against the US dollar since the beginning of January 2019, against 6.3 per cent appreciation in the Thai baht, 1.5 per cent appreciation in the Malaysian ringgit, and 3 per cent gains logged by the Philippines peso against the US dollar in the period. READ MORE

Top gainers on the BSE today


Rupee check


Active funds can gain from passive flows: Manulife Investment CIO

Foreign investors’ tendency to make large passive investments based on index allocations rather than fundamentals can create market inefficiencies that actively-managed funds can use to their advantage, says US-based CHRIS CONKEY, chief investment officer of Manulife Investment Management, managing $394 billion of assets.
 
In conversation with Jash Kriplani, Conkey shares his outlook on India, emerging markets (EMs), and how India can benefit from lingering trade differences between the US and China. READ FULL INTERVIEW HERE
Chris Conkey

NEWS ALERT | Next tranche of CPSE ETF likely in Feb: TV Reports

>> Govt hopes to raise Rs 15,000 cr

L&T, Axis Bank, RBL Bank: How to trade these stocks post Q3 results?

RBL Bank Ltd (RBLBANK): As the Moving Average Convergence Divergence (MACD) has slipped below the zero line, the sentiment may stay bearish if it continues to fall further. Although the current price hovers around the 100-day moving average (DMA) and 200-DMA, it is unable to witness any major upside as MACD fails to hold above the zero line decisively. The breakout level seems to be Rs 373 as per the daily chart. To achieve this, the counter needs to hold ground above Rs 350 with strong volumes. On the other hand, the support remains at Rs 310 levels. READ MORE

STOCK ALERT :: Divi's Labs up 2% after 1.25 million equity shares changed hands via block deals on the BSE


NEWS ALERT | YES Bank invokes pledge on 2.08% stake in SICAL Logistics: BSE filing

>>  The bank has sold 12,20,001 equity shares having nominal value of Rs.10/- each, constituting 2.08 % of the paid-up share capital of SICAL Logistics in various tranches, last being on January 22, 2020 resulting into a change in holding of the Bank by more than 2% of the total shareholding of SICAL

Cement shares gain; Ramco Cements hits 52-week high,Heidelberg Cement up 5%

Shares of cement companies were trading firm on the BSE on Thursday amid hopes of earnings improvement with Ramco Cements hitting a 52-week high, while Heidelberg Cement rallied 5 per cent intra-day. In the past month, the share prices of JK Cements, Shree Cement, JK Lakshmi Cement, India Cements, Orient Cement, Birla Corporation, Ramco Cements and Heidelberg Cement have all soared over 10 per cent. READ MORE

Ahead of Budget 2020 | FPIs reduce bond exposure on unfavourable cues

Ahead of the Union Budget on February 1, foreign investors are busy liquidating their debt holdings, particularly in government securities. There is fear of massive borrowing in the Budget, which the bond market expects to be at least Rs 7.5 trillion, from the Rs 7 trillion planned for 2019-20. There is also the fear that the Reserve Bank of India (RBI) has no wiggle room for further rate cuts. READ MORE

BUZZING STOCK:: Indraprastha Gas Limited up 3%


Growth concerns amid the economic slowdown hit Polycab India stock

One reason could be that the stock has seen a sharp rally since August, having almost doubled to the Rs 1,082-level as per Tuesday’s closing; this includes the near-12 per cent gains in the past fortnight. The bigger reason stems from growth concerns amid the slowdown. READ MORE


BUZZING STOCK:: Zee Entertainment slips 5%


Oil prices hit seven-week low on growing concern over China virus

Oil prices fell to their lowest in seven weeks on Thursday on concerns that the spread of a newly identified respiratory virus from China may lower fuel demand at the same time a report showed oil inventories in the United States rose last week. The so-called novel coronavirus has killed 17 people because of respiratory illness since it emerged late last year in the Chinese city of Wuhan. READ MORE

NEWS ALERT | Achieved financial closure of city gas distribution projects worth Rs 40,000 cr: Govt official

(As reported by CNBC TV18, quoting Agencies)

NEWS ALERT | Bharti Airtel & Vodafone Idea request govt to wait for SC’s directions in AGR case: CNBC TV18

>> Telcos write to the Telcom Department in relation the adjusted gross revenue payment,

>> Cos say, SC is seized of the matter and it's allowed an urgent hearing in the following week.

Alert: Both the companies unlikely to make payment today
 

MARKET CHECK:: Sensex off day's high


Govt considering SPV with 5G sweetener as solution to telecom crisis

Under the Centre’s tentative proposal, the government will stop collecting annual licence fee (LF) and spectrum usage charge (SUC), which will be about Rs 4,83,000 crore over 15 years, from operators. Instead, the operators will give LF and SUC to the SPV for the next 15 years and get equity in lieu of it. READ MORE

AU Small Finance Banks soars 9%, hits new high on strong Q3 results

Shares of AU Small Finance Bank soared 9 per cent to Rs 964 on the BSE on Thursday, after the bank’s net profit doubled in December 2019 quarter to Rs 190 crore on the back of strong growth in net interest income (NII). The bank had a profit of Rs 95 crore during the same quarter last fiscal. The private sector lender's stock is trading at its highest level since its listing on July 10, 2017. It surpassed its previous high of Rs 892, touched on January 20, 2020. With today’s rally, the stock is now quoting 165 per cent higher against its issue price of Rs 358 per share. READ MORE

L&T retains order inflow, revenue guidance in Q3; should you buy the stock?

On consolidated basis, net profit from continuing operations for the period stood at Rs 2,161 crore, up 13.8 per cent over the corresponding quarter of the previous year. The overall profit came in at Rs 2,352 crore, including the PAT from discontinued operations for the quarter, up 15.2 per cent over the corresponding quarter of the previous year. READ MORE

Contribution to Sensex's gain today


Buzzing | Indian Oil Corp snaps 5-day losing streak, off 15-month lows


NEWS ALERT | Dilip Buildcon executes EPC project worth Rs 1,250 cr: BSE Filing

>> Project executed with the Uttar Pradesh Expressways Industrial Development Authority


Axis Bank jumps 3% as Q3 loan growth hits 7-qtr high, NIM best in 2.5 yrs

Private lender Axis Bank surged as much as 3.4 per cent, to Rs 737.3 on the BSE, in the early trade on Thursday after the bank's loan growth touched a 7 quarter high during the December quarter of FY20 despite the slowdown in the economy. The bank's loan book for the quarter ended December 31, 2019 stood at Rs 5.5 lakh crore, up 16 per cent year-on-year. READ MORE

On the charts: Understanding the Head and Shoulders pattern

A head and shoulder pattern indicates bullish to bearish trend or vice-versa. In simple words, this trend depicts change from positive to negative. The pattern consists of a shape that have three peaks that are categorised into the left shoulder, head and the right shoulder. The left shoulder is formed at the end of a sharp up move on high volumes. After the peak of the left shoulder is formed, there is a subsequent reaction and prices slide on low volume. READ MORE

Emami drops 1%


RBL Bank trades lower post Q3 results


BUZZING STOCK:: AU Small Finance Bank surges 6%


MARKET UPDATE:: Sensex adds to the morning gains, up 200 pts now


PSU banks gain in early trade


Nifty Bank index gains 200 pts


Market check | Indices gain momentum


STOCK ALERT :: 0.14% equity exchanged


SpiceJet back above Rs 100/sh-mark, gains on low oil prices


Oil India trades in the green

>> Oil India (OIL) on Wednesday filed a clarificatory petition before the Supreme Court against a Rs 48,000-crore demand raised by the Department of Telecommunications (DoT). The DoT had slapped the demand notice on OIL, seeking Rs 48,000 crore on account of AGR (adjusted gross revenue) dues.


MARKET UPDATE:: Sensex up 100 pts


S&P BSE Oil & Gas index trades higher as Brent Crude slips over 1%


Cipla weak in trade post USFDA action on Goa unit


L&T gains post Q3 nos


Ceat gains post Q3 nos


Axis Bank trades 3% higher as loan book comes at 7-qtr high in Q3


Sectoral trends at NSE during Opening Trade


Top gainers and losers at S&P BSE Sensex during Opening Trade


Market at Open


Market at Open


Rupee opening

Rupee opens lower at 71.21/$ vs Wednesday's close of 71.19 against the US dollar

Top gainers and losers at S&P BSE Sensex during Pre-Open


Market at Pre-Open


Market at Pre-Open


Ahead of Budget 2020, FPIs reduce bond exposure on unfavourable cues

Ahead of the Union Budget on February 1, foreign investors are busy liquidating their debt holdings, particularly in government securities. There is fear of massive borrowing in the Budget, which the bond market expects to be at least Rs 7.5 trillion, from the Rs 7 trillion planned for 2019-20. READ MORE

Asian Paints: Little scope for a sharp recovery in near-term revenue growth

Asian Paints’ December quarter (Q3) numbers were a mix bag. The decorative paints major clocked 8.4 per cent year-on-year (YoY) growth in profit before tax to Rs 1,057.3 crore, which was above the consensus estimate of Rs 1,032 crore, according to Bloomberg. READ MORE

Stocks to watch: RBL Bank, Axis Bank, Biocon, PVR, L&T, Canara Bank

Here's a look at the top stocks that may remain in focus today -
 
Bharti Airtel, Vodafone Idea: Leading telecom companies including Bharti Airtel, Vodafone Idea, and Tata Group are planning to communicate to the Department of Telecommunications (DoT) that while they will comply with the Supreme court order on paying adjusted gross revenue (AGR) dues, they will wait till next week, when their “modification” petition is heard in the apex court, before paying.
 
Earnings today: As many as 50 companies including Biocon, Canara Bank, HDFC Life, PVR Ltd, PNB Housing Finance, and Oriental Bank of Commerce are scheduled to announe their Q3 results today. READ MORE

Concessional tax rate on debt puts foreign funds on sticky wicket

Even as the clamour for abolishing tax on long-term capital gains for equity investment is growing, overseas investors are staring at a higher tax outgo on their investments in Indian debt. Foreign portfolio investors (FPIs) pay a concessional tax rate of 5 per cent on interest they earn on rupee denominated bonds issued by Indian firms and government securities. READ HERE

Bharti Airtel set to gain from 100% FDI

The Union government’s permission to allow 100 per cent foreign holding in Bharti Airtel could lead to multiple gains for the company. In addition to boosting its financial position, a change in promoter holding in favour of co-promoter Singapore Telecommunications (Singtel) is also seen in a positive light by investors. READ MORE

NEWS ALERT | USFDA tags Cipla's Goa unit as Official Action Indicated: BSE filing

Alert: Inspection at Goa manufacturing facility was from 16-27 September 2019

Stock recommendation from Prabhudas Lilladher: Buy ICICI Pru Life, ACC

BUY ICICI PRU LIFE | CMP: Rs 506.50 | TARGET: Rs 570 - 580 | STOP LOSS: Rs 480
 
The stock has been in consolidation for quite some time, maintaining a support base near 480 levels and currently has given a breakout with a positive bullish candle pattern to imply strength and has potential to rise further in the coming days. The RSI has indicated a strong trend reversal with positive bias and has signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 570 – 580 keeping the stop loss near Rs 480 levels. READ MORE

Bulk deals on BSE as on Wednesday

Bulk deals on NSE as on Wednesday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check

>> Oil prices fell to their lowest in seven weeks on Thursday on concerns that the spread of a newly identified respiratory virus from China may lower fuel demand at the same time a report showed oil inventories in the United States rose last week, Reuters reported.

>> At 8:16 am, Brent CRude Futures were at $62.51 per barrel-mark, down 1.1 per cent. WTI Crude, on the other hand , was $55.95 per barrel, down 1.4 per cent.

SGX Nifty

>> At 8:13 am, the Singaporean Exchange for Nifty Futures was at 12,145.50 level, up 5.5 points

Asian Market check

Source: Reuters



US Market check

Source: Reuters


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