MARKET WRAP: Sensex up 232 pts; small-caps underperform; FMCG, metals gain

Topics MARKET WRAP | Markets

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Indian equities shifted their focus back to December quarter earnings and placed stock-specific bets amid expectations of market-friendly proposals in the upcoming Union Budget for FY 2020-21. While the indices held their gains for most part of the day, volatility was seen in the last hour of the trading  session, ahead of the expiry of the January series of Futures & Options (F&O) contracts due tomorrow.

The frontline S&P BSE Sensex snapped two-day losing streak to settle 231.80 points, or 0.57 per cent, higher at 41,198.66 level. Only eight of the 30 shares listed on the exchange settled the day in the negative territory. Bajaj Finance, up over 5 per cent post its Q3 results, was the top gainer on the Sensex, while Tata Consultancy Services (TCS), down 1 per cent, was the top laggard.

On the National Stock Exchange (NSE), the Nifty50 settled above the crucial 12,100-mark at 12,129.10 level, up 73.30 points or 0.61 per cent. Except Nifty Pharma, all the key sectoral indices ended the day in the green. Nifty FMCG index was up 1.20 per cent at close, followed by gains in Nifty Metal index (up 0.79 per cent), and Nifty Auto index (up 0.77 per cent). 

The broader markets, however, underperformed the headline indices today. The S&P BSE mid-cap edged 0.46 per cent to 15,750.36 level, while the S&P BSE small-cap index was at 14,837.49, up 0.10 per cent.

GLOBAL MARKETS

Asian shares fell on Wednesday as a spike in new Chinese virus cases sent Hong Kong stocks tumbling and added to worries about the economic impact of the outbreak.

Chinese stock futures in Singapore rebounded from two days of losses to rise 1.79 per cent, the biggest gain in almost seven weeks. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.41 per cent. But most of the losses were confined to Hong Kong shares, which sank 2.4 per cent on their first session after a two-and-a-half trading day break for Lunar New Year. Meanwhile, Japan’s Nikkei stock index rose 0.62 per cent, and Australia’s main index added 0.53 per cent.

European futures rose 0.22 per cent in early trading and US stock futures were up 0.27 per cent.

(With inputs from Reuters)

3:43 PM IST

3:42 PM IST

3:41 PM IST >> The frontline S&P BSE Sensex snapped two-day losing streak to settle 231.80 points, or 0.57 per cent, higher at 41,198.66 level >> On the National Stock Exchange (NSE), the Nifty50 settled above the crucial 12,100-mark at 12,129.10 level, up 73.30 points or 0.61 per cent.

3:27 PM IST During the current quarter, the company witnessed sluggish demand in its core markets, coupled with pressure on prices due to active monsoon", said the company in a statement. Demand in eastern markets was more visible during the quarter, but the prices, particularly in West Bengal, were very poor, it added. However, the company expects the trend in January 2020 to be positive with improvement in prices. READ MORE

3:21 PM IST >> Net profit at Rs 445.2 crore >> Revenue at Rs 2,778 crore >> EBITDA at Rs 630.6 crore

3:15 PM IST India Inc is expecting a slew of economy-boosting steps such as income-tax rate cuts, increased rural infrastructure spending, and job creation measures in the Union Budget, to be announced by Finance Minister Nirmala Sitharaman this Saturday. READ MORE

2:51 PM IST >> Net profit at Rs 103.7 crore >> Revenue at Rs 1,059.6 crore >> EBITDA at Rs 253.6 crore; margin at 23.9%

2:49 PM IST >> Standalone net profit at Rs 153 crore >> Total revenue at Rs 1,660.17 crore >> EBITDA at Rs 212 crore; margin 13%

2:43 PM IST Shares of Aptech moved higher by 4 per cent to Rs 169, bouncing back 17 per cent from its early morning low of Rs 145 on the BSE on Wednesday on the back of huge volume. On the National Stock Exchange (NSE), the stock recovered 14 per cent from its intra-day low of Rs 148. The trading volume on the counter jumped more than three-fold during the day. A combined 1.72 million equity shares -representing 4 per cent of total equity of IT training services company changed hands on the NSE and BSE so far. READ MORE

2:35 PM IST Shares of Tata Motors climbed 6 per cent to Rs 187 on the BSE on Wednesday on the back of heavy volumes after Edelweiss Securities upgraded the stock to ‘Buy’. It also revised sum-of-the-parts or SOTP-based target price to Rs 245 from earlier Rs 140 per share. The counter has seen huge trading volumes with a combined 44 million equity shares changing hands on the NSE and BSE till 02:00 pm. In comparison, the S&P BSE Sensex was up 0.82 per cent at 41,304 points. READ MORE

2:24 PM IST Asian shares fell on Wednesday as a spike in new Chinese virus cases sent Hong Kong stocks tumbling and added to worries about the economic impact of the outbreak. Chinese stock futures in Singapore rebounded from two days of losses to rise 1.79 per cent, the biggest gain in almost seven weeks. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.41 per cent. But most of the losses were confined to Hong Kong shares, which sank 2.4 per cent on their first session after a two-and-a-half trading day break for Lunar New Year, led by declines in financial services, real estate, and consumer goods companies as a growing number of firms warned they may take a hit from the China virus.   Japan’s Nikkei stock index rose 0.62 per cent, and Australia’s main index added 0.53 per cent, partly because investors in these markets had already had a chance to react to the outbreak, which has claimed more than 100 lives. European futures rose 0.22 per cent in early trading and US stock futures were up 0.27 per cent. (Reuters)

2:13 PM IST Shares of Bajaj Finance surged 4 percnet, to hit a high of Rs 4,383.05, also its fresh lifetime high, on the BSE on Wednesday after the non-banking finance company (NBFC) reported its highest ever quarterly consolidated net profit at Rs 1,614.11 crore in the December quarter of FY20 (Q3FY20), a jump of 52 per cent year-on-year (YoY) from a net profit of Rs 1,059.56 crore (Q3FY19).READ MORE

LIVE UPDATES

Nifty snapshot at close


Sensex heatmap at close


Closing Bell

>> The frontline S&P BSE Sensex snapped two-day losing streak to settle 231.80 points, or 0.57 per cent, higher at 41,198.66 level

>> On the National Stock Exchange (NSE), the Nifty50 settled above the crucial 12,100-mark at 12,129.10 level, up 73.30 points or 0.61 per cent.

Ramco Cements PBT declines 15% to Rs 110 crore on sluggish demand

During the current quarter, the company witnessed sluggish demand in its core markets, coupled with pressure on prices due to active monsoon", said the company in a statement. Demand in eastern markets was more visible during the quarter, but the prices, particularly in West Bengal, were very poor, it added. However, the company expects the trend in January 2020 to be positive with improvement in prices. READ MORE

Earnings Alert | Godrej Consumer Q3 result

>> Net profit at Rs 445.2 crore

>> Revenue at Rs 2,778 crore

>> EBITDA at Rs 630.6 crore

From tax rate cuts to job creation, India Inc sees a populist Budget

India Inc is expecting a slew of economy-boosting steps such as income-tax rate cuts, increased rural infrastructure spending, and job creation measures in the Union Budget, to be announced by Finance Minister Nirmala Sitharaman this Saturday. READ MORE

Earnings Alert | Jubliant Food Q3 results

>> Net profit at Rs 103.7 crore

>> Revenue at Rs 1,059.6 crore

>> EBITDA at Rs 253.6 crore; margin at 23.9%

Earnings Alert | Escorts Q3

>> Standalone net profit at Rs 153 crore

>> Total revenue at Rs 1,660.17 crore

>> EBITDA at Rs 212 crore; margin 13%



Aptech shares rebound 17% from day's low on heavy volume

Shares of Aptech moved higher by 4 per cent to Rs 169, bouncing back 17 per cent from its early morning low of Rs 145 on the BSE on Wednesday on the back of huge volume. On the National Stock Exchange (NSE), the stock recovered 14 per cent from its intra-day low of Rs 148. The trading volume on the counter jumped more than three-fold during the day. A combined 1.72 million equity shares -representing 4 per cent of total equity of IT training services company changed hands on the NSE and BSE so far. READ MORE

Tata Motors climbs 6% after falling 12% in nine days

Shares of Tata Motors climbed 6 per cent to Rs 187 on the BSE on Wednesday on the back of heavy volumes after Edelweiss Securities upgraded the stock to ‘Buy’. It also revised sum-of-the-parts or SOTP-based target price to Rs 245 from earlier Rs 140 per share. The counter has seen huge trading volumes with a combined 44 million equity shares changing hands on the NSE and BSE till 02:00 pm. In comparison, the S&P BSE Sensex was up 0.82 per cent at 41,304 points. READ MORE

Global Markets check

Asian shares fell on Wednesday as a spike in new Chinese virus cases sent Hong Kong stocks tumbling and added to worries about the economic impact of the outbreak.

Chinese stock futures in Singapore rebounded from two days of losses to rise 1.79 per cent, the biggest gain in almost seven weeks. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.41 per cent. But most of the losses were confined to Hong Kong shares, which sank 2.4 per cent on their first session after a two-and-a-half trading day break for Lunar New Year, led by declines in financial services, real estate, and consumer goods companies as a growing number of firms warned they may take a hit from the China virus.
 
Japan’s Nikkei stock index rose 0.62 per cent, and Australia’s main index added 0.53 per cent, partly because investors in these markets had already had a chance to react to the outbreak, which has claimed more than 100 lives.

European futures rose 0.22 per cent in early trading and US stock futures were up 0.27 per cent.

(Reuters)

Bajaj Finance hits new high on highest ever quarterly profit of Rs 1,614 cr in Q3

Shares of Bajaj Finance surged 4 percnet, to hit a high of Rs 4,383.05, also its fresh lifetime high, on the BSE on Wednesday after the non-banking finance company (NBFC) reported its highest ever quarterly consolidated net profit at Rs 1,614.11 crore in the December quarter of FY20 (Q3FY20), a jump of 52 per cent year-on-year (YoY) from a net profit of Rs 1,059.56 crore (Q3FY19).READ MORE

RESULT IMPACT:: Bajaj Finance surges over 3%


BROKERAGE RADAR | Emkay Global Financial Services on United Spirits

Following the stock’s underperformance over the last two years, valuations at 34xFY22E core business earnings (excl. the value of treasury stock and IPL franchise) now appear reasonable and offer good upsides. We upgrade the rating to Buy from Hold and become OW in EAP. Our revised TP stands at Rs 735
(from Rs 655) based on 42x Mar’22E earnings. A recovery in volumes and price increases in key states are potential upside triggers. 

BROKERAGE RADAR | Emkay Global Financial Services on Maruti Suzuki India

We expect earnings decline to be steep at 15% in FY20E, and then recover with 29 per cent growth over FY20-22E on an upturn in the sales cycle. Maintain Buy/OW in EAP with a revised TP of Rs 8,800 (Rs 8,300 earlier), based on 25x FY22E EPS (Dec’21E EPS earlier).

BROKERAGE RADAR | HDFC Securities on Navin Fluorine International

Given the newly signed long term contracts in the CRAMS BU at Dewas and a growing customer base (Europe now accounts for 50% of order book vs erstwhile 100% from US), we have better earnings visibility for NFIL’s high margin CRAMS BU. Hence, we raise our FY21/FY22 EPS estimates by 13.3/13.5% to Rs 46.8/51.8. Post announcement of Rs 4.50 billion of capex for Greenfield project at Dahej on December 12, the stock has already surged 35.8 per cent, pricing in the key positives. Our revised TP comes to Rs 1,011 (20x Dec-21E EPS). Maintain SELL.

MARKET UPDATE:: Sudden fall in Nifty, index near 12,100 levels


MARKET UPDATE:: Sensex off day's high


RESULTS UPDATE:: Bajaj Finance Q3 net profit at Rs 1,614 cr, up 52% YoY

-- Consolidated Q3 net interest income (NII) at 4,537 cr


Sitharaman's infrastructure push need not be a pipe-dream, here's how

Build infrastructure first, private investments including Foreign Direct Investments (FDI) would automatically follow is not an audacious or far-fetched dream. China did it with a great deal of success. Finance Minister Nirmala Sitharaman obviously wants to emulate the Chinese model without actually saying so when a few days ago she outlined her government’s plan to launch a massive Rs 102 trillion infrastructure development plan. READ MORE 

RESULTS UPDATE:: Ramco Cements sales volume up 3.6% at 2.84 mt vs 2.74 mt


Heatmap: S&P BSE Sensex


Rupee check


Bajaj Finance trades 1% higher ahead of Q3 results


Rail-related stocks in focus; IRCTC, IRCON hit new lifetime highs

Shares of railway-related companies which are state-owned, such as Indian Railway Catering and Tourism Corporation (IRCTC), IRCON International, and Rites, have outperformed the markets since the last Union Budget on July 5, 2019. From the private sector, Hind Rectifiers and Siemens, too, outpaced the benchmarks during the period. The S&P BSE Sensex was up 3.7 per cent since July 5 last year. However, Larsen & Toubro, Kernex Microsystems, NBCC, and Texmaco Rail were down in the range of 13 per cent to 41 per cent on the BSE. READ MORE

Subdued Q3 performance leads to stock correction in Torrent Pharma

After hitting its 52-week high, the Torrent Pharma stock fell more than 5 per cent on Tuesday, following a weak December quarter performance. The Street was disappointed by its sales in the domestic market, which accounts for 44 per cent of its overall revenue. The India business grew at a soft pace of 5 per cent on a high base of last year. Adjusting for one-offs due to the integration of stockists at Torrent and Unichem (acquired entity), the India business growth is at 8.5 per cent year-on-year (YoY). READ MORE

MARKET CHECK:: Sensex holds gains


NEWS ALERT | WABAG secures multiple orders worth over Rs 760 crore


SECTOR WATCH:: Agri stocks trade higher

COMPANY LATEST(rs) CHG(rs) CHG(%)
RALLIS INDIA 235.40 4.70 2.04
MEGHMANI ORGAN. 65.20 2.05 3.25
UPL 542.45 5.55 1.03
DHANUKA AGRITECH 547.00 31.80 6.17
P I INDS. 1547.00 -27.10 -1.72
» More

From tax rate cuts to job creation, India Inc sees a populist Budget

India Inc is expecting a slew of economy-boosting steps such as income-tax rate cuts, increased rural infrastructure spending, and job creation measures in the Union Budget, to be announced by Finance Minister Nirmala Sitharaman this Saturday. In a snap poll conducted across India, of 25 CEOs, this week, the mood among corporate heads was cautiously optimistic with many CEOs saying the Budget must announce measures to revive economic growth, which is expected to fall below 5 per cent in the financial year ending March 2020. READ MORE

Contribution to S&P BSE Sensex's gain today


Cummins India stock jumps 11% post Q3 result; pares gain later

During the quarter under review, net sales (revenue) of the company stood at Rs 1,428 crore, down 2 per cent as compared to Rs 1,463 crore registered in the same quarter last year and grew by 11 per cent compared to Rs 1,285 crore recorded in the preceding (July-September) quarter. READ MORE  






A $1.5 trillion and more wiped out: Coronavirus fallout across assets

A quick tally shows the coronavirus has wiped $1.5 trillion off the value of world stock markets since January 20, when a slide in Hong Kong shares kicked off concerns among traders. Yet with Chinese and Hong Kong exchanges shut for an extended holiday, that’s a lowball figure. READ MORE

Rallis India hits 21-month high, zooms 47% in January on strong Q3 results

Shares of Rallis India continued their northward march and rallied 7 per cent to hit 21-month high level of Rs 247 on the BSE on Friday. The stock of the Tata Group agrochemicals company was trading at its highest level since April 25, 2018. Thus far in January, Rallis has zoomed 47 per cent after it delivered an all-round performance in Q3 on the back of a 35 per cent yoy growth in the domestic business. This is Rallis' best performance in the last six years, albeit on a low base. READ MORE

Momentum picks by ICICI Securities


Subdued Q3 performance leads to stock correction in Torrent Pharma

After hitting its 52-week high, the Torrent Pharma stock fell more than 5 per cent on Tuesday, following a weak December quarter performance. The Street was disappointed by its sales in the domestic market, which accounts for 44 per cent of its overall revenue. READ MORE

STOCK ALERT | Tata Group shares in focus

>> Tata Motors, Tata Coffee, Rallis India, Tata Global Beverages, Tata Steel, Tata Chemicals up over 2%
COMPANY LATEST PREV CLOSE GAIN(RS) GAIN(%)
TATA MOTORS 185.05 176.10 8.95 5.08
TATA COFFEE 103.80 99.10 4.70 4.74
TATA MOTORS-DVR 77.00 74.10 2.90 3.91
RALLIS INDIA 239.20 230.70 8.50 3.68
TATA GLOBAL 390.65 381.00 9.65 2.53
TATA STEEL 457.30 446.25 11.05 2.48
TATA CHEMICALS 764.75 749.00 15.75 2.10

Buzzing | United Spirits declines on profit booking

>> Stock had surged 15% yesterday post Q3 results


NEWS ALERT | Cummins India maintains FY20 domestic revenue growth guidance at 3-5%

>> Maintains FY20 export revenue guidance at 0-20% decline

(From Cummins India conference call; as reported by CNBC TV18)

SC expunges SAT's adverse comments against Sebi in investor complaint case

“We have no hesitation in stating that the Sebi as a regulator in the instant case has not performed its duties and has kept the complaint pending for more than six years which speaks volumes by itself. The tribunal fails to fathom as to why the complaint could not have been decided unless Sebi officials had a vested interest in not deciding the matter,” SAT had observed in an order dated November 14, 2019. READ MORE

Market check


Bajaj Finance gains over 1.5% ahead of Q2 nos today

>> Analysts expect the NBFC to report a jump in net profit between 47% and 60% (Rs 1,556.5 crore and Rs 1690 crore)

>> ICICI Securities expect credit growth at Rs 1,45,200 crore, up 32% YoY


Tata Coffee hits 52-week high on strong December quarter results

The company’s revenue from operations remained flat during the quarter at Rs 166 crore against Rs 165 crore in the corresponding quarter of the previous fiscal. Profit after tax (PAT) grew 53 per cent YoY at Rs 24.37 crore, the company said in an exchange filing. READ MORE

LTCG removal, fiscal prudence: What brokerages want from FM this Budget?

Morgan Stanley expects the budget to: (a) focus on credible fiscal numbers and gradual consolidation, (b) continue to favour investment-driven growth with redistributive spending likely to remain in line with nominal GDP growth, (c) provide strong intent to raise additional resources through strategic divestment and asset monetization, and (d) provide a credible medium-term fiscal consolidation plan and improve the health of the public sector balance sheet. READ MORE



Nifty Metal index rises 1% on the NSE


NEWS ALERT | USFDA issues 5 observations to Dr Reddy's Labs' Andhra unit: BSE filing

>> Co says, the audit of API manufacturing plant at Srikakulam, Andhra Pradesh (CTO VI), by the US FDA, has been completed on January 28, 2020.

>> Co has been issued a Form 483 with 5 (five) observations.

>> Will address them comprehensively within the stipulated timeline. 

Manappuram Finance gains 1%


Result Impact | Tata Coffee hits 52-week high

>> Co reported 121.73 per cent rise in consolidated net profit to Rs 24.90 crore on 8.40 per cent rise in total income to Rs 511.50 crore in Q3 December 2019 over Q3 December 2018.


0.4% equity of Cholamandalam Investment changes hands


Result Impact | Cummins India surges over 5%

>> Net sales of the Company for the quarter ended December 31, 2019 at Rs 1,428 crore, declined 2 per cent as compared to Rs 1,463 crore recorded in the same quarter last year.

Result Impact | Sagar Cements dips over 1%

>> For December quarter, the company witnessed witnessed a decline of 18 per cent YoY in revenue to Rs 262 crore amid a weak demand environment. Realizations also corrected 1.1 per cent YoY to Rs 3,431/t. Lower operating profits led to a decline in PAT. Net loss for the quarter stood at Rs 9.1 crore against a loss in Rs 3 crore in Q3FY19.


Maruti Suzuki trades higher after declining 2% yesterday post Q3 nos


Tata Motors gains 2% on stable global cues


Sectoral trends at NSE during Opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Market at Open


Market at Open


Higher discounts and promotion costs hurt Maruti Suzuki's Q3 performance

India’s largest carmaker disappointed the Street with a muted set of results in the December quarter. Volumes were up marginally over the year-ago period and sharply over the September quarter on the back of an aggressive sales promotion and higher discount READ MORE

Top gainers and losers on S&P BSE Sensex during Pre-open


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens higher at 71.23/$ vs Tuesday's close of 71.32 against the US dollar

PSU exchange-traded funds yet to get tax benefits proposed in Budget 2019

PSU exchange-traded funds (ETFs), which have made significant contributions to the government's disinvestment plans in the past, are yet to receive tax benefit proposed in the FY20 Budget, even as the Centre lines up yet another share sale through this route. Among the key proposals of Finance Minister Nirmala Sitharaman’s maiden Budget was extending the Section 80C tax advantage to PSU ETFs. READ MORE

Top stocks to watch out for today

Earnings today: Bajaj Finance, Bajaj Finserv, Escorts, Jubilant FoodWorks, Pidilite Industries, Tata Power, and Trident are among the 68 companies that are scheduled to release their December quarter results later in the day.
 
ITI: ITI on Tuesday extended its follow-on offering (FPO) by three days and lowered the price band after failing to garner full subscription. ITI is a government-owned technology firm operating in the telecom sector. READ MORE

Weekly stock picks by Religare Broking

Buy Bata India Limited
 
Last Close: Rs 1,833.25
 
Initiation range: Rs 1,825-1,835
 
Target: Rs 1,940
 
Stop loss: Rs 1,780
 
BATAINDIA has witnessed a fresh breakout of late from the consolidation range where it spent nearly three months. Importantly, the price breakout was accompanied by a sharp rise in volumes, adding to the confirmation. In short, all indications are in favor of the up move to continue. We thus advise initiating fresh longs within the mentioned levels. READ MORE

Two stocks that Vaishali Parekh of Prabhudas Lilladher is bullish on

BUY CASTROL IND
 
CMP: Rs 132.90
 
TARGET: Rs 150
 
STOP LOSS: Rs 125
 
The stock has made a more or less higher bottom formation pattern on the daily chart and has bounced back with a positive candle to signal strength and has potential to rise further in the coming days. With the relative strength index (RSI) also showing a trend reversal to signal a "buy" maintaining a positive bias, we suggest to buy and accumulate this stock for an upside target of Rs 150 keeping the stop loss near Rs 125 level. READ MORE

Technical calls from HDFC Securities: Buy Nippon Life, Max India

Strong support seen around 12,000 in Nifty
 
On Tuesday, the Nifty breached its short term support of 12,087 and closed below its 50-day EMA for the first time since October 7, 2019. Trendline adjoining the previous bottoms on the daily charts projects strong support at 12,000-odd levels. On the Derivative front, highest OI is placed 12,000 strike. Nifty started its rally from September 2019 and since then has witnessed almost 5 running corrections with the bottoms being higher than the immediate previous bottom each time. READ MORE

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


Bulk deals on BSE as on Tuesday

Bulk deals on NSE as on Tuesday

Date Symbol Security Name Client Name Buy / Sell Quantity Traded Trade Price /
Wght. Avg.
Price
28-Jan-2020 AAKASH Aakash Exploration Ser L MEHTA ATULBHAI AMRATLAL HUF BUY 58,000 69.22
28-Jan-2020 AAKASH Aakash Exploration Ser L RIDDHESHKUMAR GIRISHBHAI BHANDARI SELL 36,000 68.99
28-Jan-2020 CKPLEISURE CKP Leisure Limited PRAFULLA SUBHASHCHANDRA BHAT SELL 96,000 5.80
28-Jan-2020 CKPLEISURE CKP Leisure Limited PURAN CHAND CHOUDHARY BUY 1,00,000 5.80
28-Jan-2020 CONTI Continental Seed Chem Ltd RAJESH PAL BUY 32,000 70.35
Click here for the full list

TRADE SET UP | SGX Nifty trades higher


Asian Markets check


US Markets check

Source: Reuters


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