F&O Expiry: Sensex sinks 536 pts; broader mkts outperform; bank stocks up

Market updates: A volatile session ended deep in the red on Thursday amid expiry of the January series of the Futures and Options (F&O) contracts, and profit-booking on stretched valuations and ahead of the Union Budget announcement next week.

Markets ended lower for the fifth straight day with realty and public sector banks' stocks nursing the most severe losses. At the index level, the benchmark S&P BSE Sensex tumbled 891 points in the intra-day deals today but managed to settle 535.6 points, or 1.13 per cent, down at 46,874.36 levels. 

HUL (down 3.6%), Maruti Suzuki (3.4%), HCL Tech (2%), and Bajaj Finserv (2%) were the top losers on the Sensex today while gains in Axis Bank (5.5%), SBI (2.7%), and ICICI Bank (1.3%) trimmed losses.

On the NSE, the Nifty50 closed above the 13,800-mark at 13,817.5 level, down 150 points or 1.07 per cent. The index hit an intra-day low of 13,713.

In the broader market, the S&P BSE MidCap index ended 0.4 per cen lower while the smallcap counterpart closed down 0.45 per cent.

Sectorally, Nifty Realty index ended as the top loser on the NSE, down over 2 per cent. However, Nifty Bank and Private Bank index, up around 0.3 per cent each, were the only gainers.

Global markets

Shares wiped out their gains in Europe for the year early on Thursday, soured by a sell-off on Wall Street, no end in sight to pandemic lockdowns and a squeeze in short positions.

The pan-European STOXX benchmark was down 1.8% at 395.77 points, its lowest since December. London, Paris and Frankfurt all fell.

Asian shares slid on Thursday while the safe-haven dollar rallied as Wall Street’s sell-off and delays in coronavirus vaccines provided an excuse to book profits on recent gains.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2%, Japan’s Nikkei fell 1.5%, its sharpest drop since October, and Chinese blue chips lost 2.7% as liquidity tightened before the Lunar New Year holidays.

South Korea fell 1.7%, led by losses in Samsung after it reported earnings.


Axis Bank ends over 5% higher post Q3 results

Sectoral trends at NSE at close

Sensex heatmap at close

Closing Bell

Closing Bell

VRL Logistics gains 6% as board to consider share buyback proposal

The logistic company's board of directors is scheduled to meet on February 2, 2021 to consider a proposal for buy-back of equity shares of the company including matters related/ incidental thereto. The board will also consider and approve the un-audited financial results for the quarter ended December 31, 2020 (Q3FY21), VRL Logistics said in BSE filing on Wednesday after market hours. READ MORE

Nifty sectoral indices at this hour

A total of 3 stocks hit their respective 52-week high levels in an otherwise feeble market

Company PRICE(rs) 52 WK HIGH CHG(%)
A B B 1359.60 1419.40 -2.28
CEAT 1500.45 1542.00 0.56
Havells India 1177.30 1195.30 5.49

Auto sector going through long-term structural slowdown, CAGR dips: SIAM

Automobile industry in India is going through a long-term structural slowdown as the compound annual growth rate (CAGR) across all major vehicle segments has witnessed a decline over the last three decades, as per industry body SIAM.
The auto industry has been facing headwinds even before the COVID-19 pandemic derailed the entire sector last year, a research conducted by the Society of Indian Automobile Manufacturers (SIAM) has revealed. READ MORE

IPO Update :: Stove Kraft issue subscribed nearly 7 times so far

-- The issue closes today

Bank of Baroda shares plunge over 10% post Q3 numbers

Maruti Suzuki posts 26% YoY growth in Q3 profit at Rs 1,997 crore

Auto major Maruti Suzuki, on Thursday, reported a 25.8 per cent year-on-year growth in consolidated profit at Rs 1,996.7 crore for the December quarter of FY21 (Q3FY21) while revenue rose 13.26 per cent to Rs 23,471.3 crore. In comparison, the company had posted revenue of Rs 20,721.8 crore and profit of Rs 1,586.9 crore in the corresponding quarter of last year. On a standalone basis, Maruti's revenue came in at Rs 23,458 crore while profit after tax (PAT) stood at Rs 1,941.4 crore. READ MORE

Dec Quarter Result ::IDBI Bank's profit comes in at Rs 378 cr vs loss of Rs 5,763 cr YoY

>> NII at Rs 1,809.5 crore

>> NNPA drops from 2.67% to 1.94%

>> GNPA declines from 25.08% to 23.52%

Buzzing stock :: Axis Bank extends gains, rises nearly 5%

NEWS ALERT :: Pfizer-BioNTech say their Covid vaccine is effective against UK, South Africa variants

Dec Quarter Result :: Maruti Suzuki posts profit of Rs 1,941.4 crore

>> Revenue at Rs 23,458 crore

>> EBITDA at Rs 2,226 crore

Market Voice :: Nilesh Shah on how to unlock value in PSUs

India has a vast financial resource that is locked up in her PSUs currently. But that value needs unearthing, before unlocking. For example, since January 2008 when the BSE PSU Index made a market top, the Sensex has multiplied more than two times, while the PSU Index is down more than 40 per cent. READ MORE
Nilesh Shah, managing director of Kotak Mahindra Mutual Fund

Q3 RESULTS | DB Corp's consolidated net profit up 21.3% YoY at Rs 99 crore

-- Revenue down 17.4% YoY at Rs 494.3 cr
-- Ebitda up 16.9% YoY at Rs 165.6 crore
-- Ebitda margin at 33.5% vs 23.7% (YoY)

K M Birla's firm bets on India's economic recovery, revives investments

As the vaccines roll out, and governments and central banks provide stimulus, India will be among economies to rise above pre-pandemic levels, the billionaire said in a Bloomberg Television interview on Wednesday. His Aditya Birla Group has already unveiled plans to plow in about $2.4 billion across businesses in the past few weeks, months after putting on hold some of its expansion programs on account of the Covid-related lockdowns. READ MORE

Inox Leisure, PVR trade firm as cinema halls to operate at higher capacity

Share of multiplex operators PVR and Inox Leisure gained up to 4 per cent on the BSE on Thursday in an otherwise weak market after the government allowed cinema halls, which are operating at 50 per cent limit to occupancy, to operate at higher occupancy. The Ministry of Home Affairs (MHA), on Wednesday, allowed cinema halls and theatres to operate with more people, and it will issue revised SoP for the same. The new guidelines regarding Covid-19 protocols will be effective from February 1 onwards. READ MORE

Sector Watch :: Nifty Auto defies trend, manages to stay in the green

BSE advance-decline ratio in favour of sellers

HEATMAP:: 28 out of the 30 Sensex constituents in red

India's gold demand hits 25-yr low in 2020 amid lockdowns, high prices: WGC

Demand for gold in India in calendar year 2020 dropped to a 25-year low of 446 tonnes as compared to 690.4 tonnes in 2019, as per the latest report released by World Gold Council (WGC). “The last time the demand hit such levels was in 1995 at 462 tonnes,” said Somasundaram PR, managing director for India, World Gold Council. READ MORE

MARKET UPDATE:: Indices at day's low, Sensex tumbles 700 pts

Aditya Birla Fashion acquires 51% stake in Sabyasachi; stock dips 6%

Sabyasachi is India’s largest and most influential luxury designer brand and engaged in categories such as apparel, accessories and jewellery and has a strong franchise in India, US, UK and the Middle East. The brand generated revenue worth Rs 274 crore as on FY20. READ MORE

HDFC Bank: Growing dependence on corporate loans isn't a long-term positive

Among those which have announced the December quarter (Q3) results so far, HDFC Bank saw the highest earnings upgradation (8– 11 per cent) for FY22 on the back of strong results. In the near-term though, the stock has been a laggard, down six per cent in a week. READ MORE

NEWS ALERT :: Bharti Airtel announces 5G network

>>  Co become first telecom company to demonstrate & orchestrate LIVE 5G service over a commercial network in Hyderabad city.

>> Airtel did this over its existing liberalised spectrum in the 1800 MHz band through the NSA (Non Stand Alone) network technology.

RIL, SBI: These five stocks may lead the Sensex, Nifty rebound, charts show

S&P BSE SENSEX: The index is nearing the support of 50-days moving average (DMA) placed at 46,772 as per the daily chart. A reversal nearing this support may show a tremendous accumulation and may trigger a sharp bounce towards 50,000-mark. On the trendline scenario, only a decisive close below 47,000 may accelerate selling pressure. The overall structure indicates the index is able to uphold the reversal with the trendline support intact, as per the chart. READ MORE

MARKET UPDATE:: Broader indices fare better than their benchmark peers

SECTOR WATCH:: Auto stocks trade largely higher in an otherwise feeble market

Company LATEST(rs) CHG(%)
Tata Motors 270.50 1.16
Ashok Leyland 114.55 -0.48
M & M 770.00 0.02
Tata Motors-DVR 107.45 0.80
Maruti Suzuki 7908.00 0.53
» More

Here's what brokerages expect from TVS Motor Q3 results today

According to the monthly sales data, TVS Motor sold 9.89 lakh units in Q3FY21, up 20 per cent YoY from 8.21 lakh units it sold in the year-ago period. Sequentially, the company's volume grew 14 per cent from 8.67 lakh in Q2FY21. In the quarter under review, the company sold 9.51 lakh 2-wheelers (up 23% YoY) and 37,638 3-wheelers (down 22% YoY). READ MORE

Top losers on the BSE at this hour

Company PRICE(rs) CHG(%)
Bank Of Baroda 68.05 -7.85
DCB Bank 103.05 -5.42
Vakrangee 55.00 -4.93
India Cements 159.05 -4.33
Aditya Bir. Fas. 155.70 -3.98
» More on Top Losers

IndiGo Q3 preview: Server hack, fleet expansion among key monitorables

Analysts at the brokerage would focus on the management’s commentary on key issues like fleet and capacity planning, liquidity, update on fund-raising via QIP, pricing strategy, network planning, cost management, cargo business, and underlying yield environment. Besides, they would also track updates on the recovery in the corporate demand.
That apart, HSBC expects the management to issue a statement on the loss due to servers being hacked at the airline. Overall, the brokerage expects the airline to report a net loss of Rs 837.6 crore, and revenue worth Rs 5,146.9 crore. READ MORE

Havells India hits fresh record high in weak market, surges 32% in a month

Havells India shares traded 7 per cent higher to hit a fresh record high of Rs 1,190 on the BSE in an otherwise weak market on Thursday, on expectation of higher growth in the next few quarters due to a low base (lockdown quarters) and effect of price hikes. The fast moving electrical goods company's stock has surpassed its previous high of Rs 1,164, touched on January 22. READ MORE

Buzzing Stock :: Inox Leisure shares rise over 3%

Ministry of Home Affairs (MHA) on Wednesday allowed cinema halls and theatres to operate with more people. At present, cinema screens are operating with 50 per cent seating restrictions.

BUZZING STOCK:: Havells up 5% in an otherwise weak market

Top Sensex drags at this hour

NEWS ALERT | Govt looks to sell 10-15% stake in LIC; may be announced in Budget: CNBC TV18

-- Govt also plans stake sale in IDBI Bank, Central Bank, and Punjab and Sind Bank

NEWS ALERT :: Cadila's Zydus granted Orphan Drug Designation by the US FDA

>> US FDA has granted ‘Orphan Drug Designation’ (ODD) to Saroglitazar Mg for the treatment of patients with Primary Biliary Cholangitis (PBC).

>> Orphan drug designation provides eligibility for certain development incentives, including tax credits for qualified clinical testing, prescription drug user fee exemptions and seven-year marketing exclusivity upon FDA approval.

>> This follows the grant of ‘Fast Track Designation’ by the USFDA to Saroglitazar Mg for PBC in December 2020. 

(Source: BSE filing)

MARKET CHECK:: Sensex again slips below 47,000

Result today :: Analysts see up to 30% YoY growth in Maruti Suzuki's Q3 PAT

Maruti Suzuki is expected to post a healthy set of numbers for the December quarter of FY21 (Q3FY21), which is scheduled to be released on Thursday. Analysts are building up to 30 per cent year-on-year (YoY) growth in the company's bottom-line while revenue is seen growing in early teens, on account of strong volume during the quarter. The company had posted revenue of Rs 20,706.8 crore and profit of Rs 1,564.8 crore in Q3FY20. READ MORE

MARKET UPDATE:: Nifty Bank index slips below 30k in intra-day deals

Cosmo Films surges 7% on strong Q3 results, Rs 25/share interim dividend

Shares of Cosmo Films surged 7 per cent to Rs 475 on the BSE in intra-day trade on Thursday after the company reported a strong 75 per cent year on year (YoY) jump in consolidated net profit at Rs 63 crore in the December quarter (Q3FY21), on the back of healthy operational performance. The company's board of directors have declared interim dividend of Rs 25 per share for FY21 and fixed February 8, 2021 as the record date. READ MORE

Rupee opening

Rupee opens weaker at 73.13/$ vs Wednesday's close of 72.92 against the US dollar

Astral Poly Technik gains 5% in weak market as firm to consider bonus issue

Shares of Astral Poly Technik climbed 5 per cent to Rs 1,731 on the BSE in Thursday's intra-day trade, in an otherwise weak market, after the company said it would consider a bonus issue plan next month. The company's board of directors is scheduled to meet on February 3, 2021, to consider a proposal for the issue of bonus equity shares. The board will also consider the unaudited financial results for the quarter and nine months ended December 31, 2020 (Q3), the company said in an exchange filing. READ MORE

Market View | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Markets, globally, have turned weak following the steady decline in the mother market US. The heightened speculative activity in certain segments in US markets have become an area of concern. Back home, in India, the third day of consecutive selling by FIIs ( Rs 1688) have turned the market mood bearish. The budget uncertainty will keep the bulls in restraint. On the positive side, Fed affirming the continuation of accommodative monetary policy and bond purchases of $ 120 billion every month ensures adequate liquidity for markets. In brief, a confuse set of market signals. Nifty has corrected around 5% from the peak. This is a healthy correction

PSU Banks underperfom markets

Axis Bank turns positive

MARKET CHECK :: Sensex recovers from day's low

Covid-19 update

Telecom stocks trade higher in a weak market

RIL snaps 3-day losing streak, leads S&P BSE Oil & Gas index as top gainer

Oil India down 1%

>> Oil India (OIL) has started its first-ever seismic survey in Tripura, kicking off exploration and production operation in the north-eastern state. OIL commenced a seismic survey in block AA-ONHP-2018/5, the company said in a statement.

United Spirits sinks over 5%

>> United Spirits (USL) on Wednesday reported a 20.82 per cent YoY rise in consolidated net profit at Rs 280.3 crore for the third quarter ended December 2020. The company's revenues from operations jumped 7.65 per cent YoY to Rs 8,410.3 crore in the latest December quarter.

HCL Tech erases over 2%

>> HCL Technologies (HCL) has partnered with University of California, Berkeley to create a Health Technology Collaborative Laboratory (CoLab).

ICICI Prudential Life trades with a per cent cut

>> The private sector insurer reported a marginal 1.3 per cent growth in net profit at Rs 306 crore for the three months to December on higher tax outgo, which whittled down the massive investment gains.

SBI Cards declines in trade on MD's resignation

>> The company said its Managing Director and CEO Ashwini Kumar Tewari has resigned pursuant to his appointment as MD of State Bank of India.

Aditya Birla Fashion slides 2.5%

>> Aditya Birla Fashion and Retail (ABFRL) has announced a strategic partnership with designer brand Sabyasachi by signing a definitive agreement for acquiring 51% stake in Sabyasachi brand.

Result Reaction :: JK Paper tumbles over 5%

>>  JK Paper reported a decline of 51 per cent in its consolidated net profit at Rs 64.59 crore for the third quarter ended December. The company had posted a net profit of Rs 131.85 crore in the October-December quarter a year ago. Its total income was down 9.28 per cent YoY to Rs 770.45 crore.

Axis Bank dips 1% on lower-than-expected Deceber quarter result

>> The private sector lender reported a 36 per cent decline in net profit at Rs 1,117 crore in the December quarter compared with Rs 1,757 crore a year ago, due to higher provisions. Net interest income, meanwhile, rose 14 per cent YoY to Rs 7,373 crore. 

HUL dips half a per cent post Q3 nos

>> Hindustan Unilever (HUL) posted an 18.87 per cent YoY rise in its standalone net profit at Rs 1,921 crore in the December quarter. The revenue from the sale of products came in at Rs 11,862 crore, up 21 per cent YoY. 

Sectoral trends on NSE during Opening trade

Sensex heatmap

Opening Bell

Opening Bell :: Sensex tests 4,7000

Commodity Heatmap

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

Market at Pre-open

Market at Pre-open

Commodities outlook & trading strategies by Bhavik Patel of Tradebulls Sec

Silver has been choppy and swinging between $25 to $26 since last one week. US real yields have been dropping in, which is likely to stop any sell-off from getting too deep in Silver. Right now, 50EMA is at $26 which is providing resistance while $25 has been providing support. II. Traders should wait for breakout above $26 which will give silver momentum on the upside. So far buyers remain elusive and for sellers, $25 is to the level to beat to gain momentum on the downside. 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

Stocks to watch: Axis Bank, HUL, Maruti Suzuki, IndiGo, PVR, ABFRL, Nalco

Axis Bank: The private sector lender reported a 36 per cent decline in net profit at Rs 1,117 crore in the December quarter compared with Rs 1,757 crore a year ago, due to higher provisions. Net interest income, meanwhile, rose 14 per cent YoY to Rs 7,373 crore.
HUL: Hindustan Unilever (HUL) posted an 18.87 per cent YoY rise in its standalone net profit at Rs 1,921 crore in the December quarter. The revenue from the sale of products came in at Rs 11,862 crore, up 21 per cent YoY. 
Q3 earnings: Maruti Suzuki. Lupin, InterGlobe Aviation, Angel Broking, IRCTC, Tata Chemicals, and TVS Motor Company are among 129 companies slated to announce their December quarter earnings later today. READ MORE

Oil slips on tightening COVID-19 curbs, especially in China

Oil prices slid in early trade on Thursday on fresh worries about weakened fuel demand, after England clamped down on travel and China, the world’s second-largest oil consumer, also sought to limit Lunar New Year trips to stem a surge in Covid-19 cases.

US West Texas Intermediate (WTI) crude futures fell 12 cents, or 0.1%, to $52.72 a barrel, erasing some of Wednesday’s gain.
Brent crude futures fell 16 cents, or 0.3%, to $55.65 a barrel, after losing 10 cents on Wednesday.

(Source: Reuters)

SGX Nifty Update

>> At 8:43 am, the index was down 145 points at 13,835 level, indicating a gap-down start for the indices.

US Market Check

The main Wall Street indices declined overnight amid deepening concerns about stretched valuations in equities markets. Adding to the market worries was the outcome of the Federal Reserve’s policy meeting. While the Fed left its key overnight interest rate near zero and made no change to its monthly bond purchases, policymakers flagged a concerning slowdown in the pace of the economic recovery.
Overall, the S&P 500 index fell nearly 2.57 per cent, the Dow fell 2.05 per cent and the Nasdaq dropped 2.61 per cent.

Asian Market Check

In early Asian trade, Australia's ASX200 benchmark lost 2 per cent, while Japan's Nikkei and Hong Kong's Hang Seng fell over 1 per cent, each. South Korea''s Kospi, meanwhile, was down 0.9 per cent.

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