Equities were choppy today, swinging between losses and gains amid the release of FY21 Economic Survey. Sensex deepened losses in the last minutes of trade to end sub 46,500. The Nifty moved in the range of 13,966.85-13,596.75
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29 Jan 2021, 03:50:54 PM IST
Indian equities skid; Sensex, Nifty fall 1% each on losses in IT, auto stocks
Shedding a percent each, India's benchmark indices, Sensex and Nifty, closed lower for the sixth straight day today. Heavy selling in IT and auto stocks led to losses.
The Sensex slumped 588.59 points, or 1.26% to end the day at 46,285.77, while the Nifty settled at 13,634.60, down 182.95 points, or 1.32%. The Sensex is now down 5% for the week.
Nifty Midcap100 and Nifty Smallcap100 ended 0.38% and 0.63% lower, respectively.
Metal, pharma, and FMCG stocks were also under pressure, while banking and realty index ended higher.
On the Nifty, Dr Reddy's Laboratories, Maruti Suzuki, Hero MotoCorp, Tata Steel and Bharti Airtel were the top losers, while IndusInd Bank, Sun Pharmaceutical Industries, ICICI Bank, HDFC Bank and HDFC Life Insurance gained the most.
29 Jan 2021, 03:39:18 PM IST
Nifty view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets were successful in breaking 13700 and has closed below it too. We could slide further to 13400 and thereafter to 13200. The fall has been backed by very high volumes especially in the last hour of trade. Any rally up can now be utilised to short the Nifty for lower targets. The resistance is now at 14000 and until that is not crossed, we will remain in the grip of the bears.
29 Jan 2021, 03:30:14 PM IST
Dabur India reports 23.7% increase in third quarter profit
Fast moving consumer goods company Dabur India Ltd., on Friday reported a 23.7% jump in its third quarter profit, beating street estimates.
For the three months ended December, consolidated net profit stood at Rs493.50 crore, up from Rs398.87 crore reported in the year-ago period. A Bloomberg poll of 20 analysts had pegged Dabur’s third quarter profit at Rs467 crore.
Consolidated revenue from operations stood at Rs2,728.84 crore, up 16% from Rs2,352.97 crore.
Dabur reported its highest ever quarterly revenue and profits. The company’s domestic volumes grew 18.1%.
Healthcare vertical comprising brands such as Honitus, Dabur honey, Pudin Hara etc had a strong quarter.
"Relaxation in fiscal deficit targets may be necessary, and the government may have to revise the deficit target upwards for the current year in view of the dire need to augment capital expenditures. The Government should take a fresh look at the policy of fiscal deficit targets and allow for gentle increases in government borrowings to finance larger public investment and social expenditures. Much of the burden of fiscal adjustment has had to be borne by capital expenditure. At a time when a substantial increase in capital expenditures is warranted, the fiscal space has posed serious constraints. Perhaps, the Government may have to revise the deficit target upwards for the current year in view of the dire need to augment capital expenditures. Increasing expenditure on public projects to create employment and public assets constitute the need of the hour. Increase in public spending will have to be financed to a large extent by garnering disinvestment proceeds and monetising assets. The Government should be transparent and include off-budget liabilities in providing the estimates for the deficit.
In addition, calibrating a counter-cyclical fiscal policy requires fiscal expansion. The government’s measures are largely on the supply side to revive the investment climate by making the cost of borrowing low and saving more after tax profits for further investment. Now is the time for interventions on the demand side to increase consumption and investment demand. This would require an increase in public spending and new investments from public enterprises."
"The Economic Survey 2021 is of a particular significance as it comes during unprecedented times. With an estimated 8% GDP contraction in FY-21, an obvious focus will be to assess the impact of pandemic on various sub segments of the economy in order to draw insights for deciding future policy discourse. The broader economy has started to show signs of recovery with IMF projecting a double-digit growth in FY-22. The economic survey is also expected to forecast a strong growth along with continuation of reforms agenda especially focusing on Aatmanirbhar Bharat, digital transformation, healthcare and banking. India is at a critical inflection point and we expect this economic survey to be a significant input to government’s policy roadmap, that can put economy back on track for achieving the $5 trillion goal."
29 Jan 2021, 02:15:21 PM IST
Airtel Africa Q3 net profit rises 13.1%; customer base up 11%
Bharti Airtel’s Africa unit on Friday reported a 13.1% year-on-year (yoy) increase in its net profit to $116 million for the quarter ended December, driven by growth in key metrics such as average revenue per user. It had reported a net profit of $88 million during July-September.
The telco’s revenue grew 17.2% y-o-y , and 22.8% in constant currency terms, to $1,034 million in October-December, buoyed by growth across voice, data and mobile money segments in key markets such as Nigeria, East Africa and Francophone Africa.
Customer base expanded 11% to 118.9 million, and average revenue per user (Arpu) rose to $2.9 in the December quarter, registering a growth of 9.3% in constant currency, the company said in a statement.
Airtel Africa’s mobile data customer base increased 23.5% y-o-y and that of mobile money services rose 29%. The company added 2.5 million customers in Q3 FY21.
29 Jan 2021, 01:59:14 PM IST
Economic Survey says Govt sees FY22 GDP growth at 11%: Reports
Economic Survey: Combined fiscal deficit to exceed FY21 target, says government
Economic Survey: Govt consumption, net exports cushioned fall in GDP
Economic Survey: FY21 GDP estimated to contract by 7.7%
Economic Survey: Agriculture has remained the silver lining
Economic Survey: FY22 nominal GDP to grow at 15.4%
29 Jan 2021, 01:56:52 PM IST
Trust in WhatsApp falling fast amongst Indian users, three surveys reveal
Community platform Local Circles, on the other hand, surveyed over 17000 individuals in the country, revealing that over 75% users will completely stop using business chats and payments if the platform was to implement its new policy. According to a third survey (of 565 respondents, between January 9 and 25), by market research firm BM Nxt, 82% respondents have disapproved WhatsApp’s move and 37% are considering a move.
29 Jan 2021, 01:56:10 PM IST
Govt working on NIP to modernize infrastructure: President Kovind
The government is working on an ambitious plan to modernize infrastructure under the National Infrastructure Pipeline (NIP), President Ram Nath Kovind said on Friday.
“To modernize the country's infrastructure, my government is also working on a National Infrastructure Pipeline worth more than ₹110 lakh crore. Also, construction of six new expressways and 18 new access-controlled corridors are underway in the first phase of the Bharatmala project," Kovind said at the joint sitting of the two houses in the beginning of the Budget session.
29 Jan 2021, 01:50:45 PM IST
Mumbai local trains to open to public from 1 February
29 Jan 2021, 01:44:51 PM IST
Losses deepen, 23 of 30 Sensex stocks in the red
29 Jan 2021, 01:43:11 PM IST
Markets at this hour
29 Jan 2021, 01:33:29 PM IST
Pharma index worst hit sectoral index
29 Jan 2021, 01:30:42 PM IST
Star India renews broadcast rights for Wimbledon until 2023
29 Jan 2021, 01:30:25 PM IST
President Kovind refers to India-China border row in his address to the Parliament
India’s border tensions with China figured in the speech by President Ram Nath Kovind on Friday, the first day of the budget session of the parliament with the president saying that his government, led by Prime Minster Narendra Modi, was vigilant and committed to safeguarding the interests of the country.
In keeping with the role envisaged for India as a prominent voice in the world, Kovind also said that his government was determined to strengthen India’s military preparedness.
Paying tribute to the 20 Indian soldiers who were killed during a clash with Chinese troops at the border, Kovind said India was “deeply indebted" to the courage they displayed.
29 Jan 2021, 01:23:04 PM IST
IndiGo cancels its QIP plans
India’s largest domestic airline, InterGlobe Aviation Ltd operated-IndiGo, has scrapped plans to raise funds through qualified institutional placement (QIP) route, instead opting to raise capital through sale and lease back (SLB) transactions and other financing options.
"There are several financing options (before us). The ongoing deliveries of neo aircraft (A320neo/A321neo) in FY 22 will bring further liquidity," IndiGo's chief financial officer Aditya Pande told analysts during the airline's post earnings call on Thursday.
29 Jan 2021, 01:12:53 PM IST
Boeing confident over growth prospects of US-India strategic ties under Biden: PTI
Exuding confidence that US-India ties will continue to evolve and grow at a strategic level, a Boeing official has said there are “good early signs" in the new Biden administration that the positive relationship will grow and strengthen over the next several years.
Jeff Shockey, vice president, Global Sales and Marketing, Boeing Defense, Space & Security and Boeing Global Services, said there was bipartisan support on Capitol Hill for strengthening ties between the two nations.
29 Jan 2021, 12:59:56 PM IST
Colgate Palmolive rises amid weak market post strong sales growth in December quarter
29 Jan 2021, 12:53:37 PM IST
RBL Bank soars 7% after Q3 net profit doubles
Shares of RBL Bank jumped 7.5% after the lender reported the doubling of its net to Rs147 crore for the December.
At 1245 pm, the RBL Bank stock traded at Rs2,17.20 apiece, up 1% from its previous close, while the benchmark Sensex was down 0.08% at 46860.68.
The bank's other income during the October-December grew 19% to Rs579 crore, which helped the bottom-line. Capital adequacy ratio stood at 17.33% as of 31 Decembe, after one round of infusion during the quarter.
29 Jan 2021, 12:48:37 PM IST
Sweden's SSAB calls of deal talk with Tata Steel Netherlands
wedish steelmaker SSAB said on Friday it has called off talks concerning a potential acquisition of Tata Steel's IJmuiden steel mill and related downstream assets.
SSAB had said in November it was in talks over a potential acquisition of Tata Steel's Dutch assets, but the deal had raised concerns among some SSAB investors and analysts.
The Swedish company has attracted investors in recent years with its green steel venture Hybrit, and investors have reportedly been concerned about whether a deal with Tata Steel would be consistent with its green steel strategy.
Shriram Transport Finance gets its game right on asset quality, growth in Q3
Used vehicle and fleet financier Shriram Transport Finance Company Ltd got it right in the December quarter with asset quality and growth, something that investors appreciated by driving its stock up 13% today.
The company reported a sequential decline in delinquencies to Rs8,170 crore for the December quarter. Total gross stage three assets were just 7.1% of the loan, a sequential drop of 15 basis points. This is taking into account the benefit from judicial standstill on bad loan recognition.
In its interaction with analysts today, the management said outlook on asset quality is improving. In short, the lender has turned a corner on asset quality and that augurs well for future profitability given incremental provisioning needs would reduce. (Full Report)
29 Jan 2021, 12:32:39 PM IST
Top gainers/losers on Sensex at this hour
29 Jan 2021, 12:30:30 PM IST
Dr Reddy's reports Q3 profit of ₹20 cr
It had reported a consolidated net loss of Rs527.4 crore in the year-ago period. However, Q3FY21 net profit was sharply lower than analysts’ estimate of Rs726.5 crore.
The bottomline was hit because of a one-time impairment charge of Rs592.6 crore with respect to certain products.
The company’s consolidated revenues grew 12% on year to Rs4,930 crore, which was largely in-line with analysts’ estimate of Rs4,975 crore.
Colgate’s near record high Q3 gross margin gives investors reason to smile
For investors of Colgate Palmolive (India) Ltd, which is in the oral care business, the December quarter results have some bright spots. First, the company saw gross profit margin expand 417 basis points year-on-year to 69.6%. One basis point is one-hundredth of a percentage point.
“A favourable mix allowed the company to report a near record-high gross margin," said analysts from Jefferies India Pvt. Ltd in a report on 28 January. “Gross margin expansion was aided by higher toothpaste salience, lower share of exports, increased contribution from large packs and price hike taken two quarters ago." (Full Report)
29 Jan 2021, 11:53:50 AM IST
India set to boost spending in Budget to beat pandemic woes: Bloomberg
Finance Minister Nirmala Sitharaman will likely make a generous allocation for development, put more money in the hands of the average taxpayer to boost consumption and ease rules to attract foreign investments when she presents the Union Budget for FY21 on Monday.
29 Jan 2021, 11:49:27 AM IST
L&T to supply 28 steel bridges for bullet train project
L&T Construction, subsidiary of engineering major Larsen & Toubro, has secured a contract to supply 28 bridges for the Mumbai Ahmedabad High-Speed Rail Corridor, the parent company said in a filing to stock exchanges.
The project was secured through a consortium of L&T and IHI Infrastructure Systems of Japan, L&T said in the statement on Friday.
Pharma company Lupin reported a net profit of ₹438.3 crore for the quarter ended December, led by growth of sales in the US, India and Rest of the World markets. The company had reported a loss of Rs835 crore in the year-ago period.
Revenues rose 5.4% year-on-year to ₹3,917.3 crore, 3.6% sequentially.
29 Jan 2021, 11:07:35 AM IST
Tata Communications OFS likely in February: CNBC TV-18
Rupee traded at 73 per dollar vs Thursday's close of 73.04/$
29 Jan 2021, 11:05:37 AM IST
Rising competition, cost inflation could weaken Pidilite's bond with investors
Adhesives maker Pidilite Industries Ltd reported stellar performance for the December quarter on key earnings parameters. Consolidated profit and revenue at Rs446 crore and Rs2,299 crore , respectively, exceeded analysts' expectations. Volumes in its key consumer and bazaar business (C&B) grew 22% on year-on-year, while overall volumes improved by 19% y-o-y in the December quarter.
The company's management said volume and value growth of more than 20% in the C&B segment was driven by continued demand momentum in rural areas and strong recovery in urban, including metros. The management added that due to resurgence in industrial activity healthy volume growth has been registered in the Business to Business (B2B) segment, too. (Full Report)
29 Jan 2021, 10:42:17 AM IST
Sun Pharma a tad higher ahead of December quarter results
Steel Strips Wheels has bagged exports orders for over 22,000 wheels for the EU and US market to be executed in February and March from its Chennai plant.
29 Jan 2021, 10:10:40 AM IST
IRFC makes tepid debut; lists at 4% discount to issue price
Shares of Indian Railway Finance Corporation (IRFC) made a tepid listing on the stock exchanges on Friday. The stock listed at ₹24.90 apiece, a 4.2% discount to its issue price of ₹26. The initial public offering (IPO) was open for subscription from 18-20 January at a price band of ₹25- ₹26. The issue was subscribed 3.49 times.
This is the first stock listing of 2021, wherein the government plans to sell around 13.64% stake in the company to raise around Rs4,633.38 crore at the upper end of the price band.
Net proceeds from the issue will be utilised for augmenting the equity capital base of the company to meet future capital requirements arising out of growth in their business and for general corporate purposes.
29 Jan 2021, 09:54:22 AM IST
Markt view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets have seen a brief bounce from the 13700 level which acted as a good support yesterday. We need to keep above this and thereafter get past 14500 in order to resume the uptrend. If we fall below 13700, we can slide to see lower levels; for starters 13600 and thereafter 13200.
29 Jan 2021, 09:44:15 AM IST
Tata Motors up ahead of December quarter results
The company is expected to report double digit growth in consolidated revenue and operating profit for the December quarter, led by improved sales of Jaguar land Rover in major markets like China. According to brokerage Emkay Global, the carmaker is likely report a 92% year-on-year increase in net profit to Rs2,957.2 crore as result of 20% jump in net sales to Rs86,364.3 crore.
Nifty view: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
Purely looking at the chart, the trend is likely to remain downwards as long as Nifty stays below 14200-14300. Any short term bounce towards these levels is likely to get sold into. On the other side, there is a cluster of supports around 13700-13500. For the time being, we expect the index to gyrate within this range with a lot of stock specific moves.
At this juncture, we do not advice aggressive bets on the short side, rather we are likely to see stock specific trades on both sides. Traders should look to identify such potential themes and position accordingly by following strict stop losses.
The way banking had a smart rebound in the last hour, all eyes would be on this space, which would provide some direction to Nifty. For the coming session, 13900 followed by 14000 is to be seen as immediate hurdles, while on the downside, 13750-13700 should provide some support. The coming session is likely be less volatile and we do not expect a bigger move on either sides one day ahead of the Budget
Sun Pharma, Tech Mahindra, Dabur India, IOC, Tata Motors, Dr Reddy's Labs, Cipla, DLF, IndusInd Bank, Vedanta, UPL, SAIL, LIC Housing and Siemens are among major companies which will announce their December quarter results today
29 Jan 2021, 08:39:22 AM IST
SGX Nifty trades higher
Nifty futures on the Singapore Exchange traded 132 points, or 0.96%, higher at 13,975, indicating a higher start to domestic indices.
The Sensex had closed 536 points, or 1.13%, lower at 46,874.36 on Thursday, while the Nifty settled 150 points, or 1.07, down at 13,817.55.
29 Jan 2021, 08:38:45 AM IST
Asian equities follow US peers higher in early deals
Asian stocks rose on Friday after US shares rallied and the dollar eased overnight, as fears of social-media driven hedge fund selling abated and the US earnings season got off to a strong start.
In early Asian deals, Australia’s S&P/ASX 200 benchmark was up 1.15%, Japan’s Nikkei futures rose 1.39% and Hong Kong’s Hang Seng index futures gained 1.47%.
29 Jan 2021, 08:37:12 AM IST
US stocks rise on strong corporate earnings, economic data
Major US indices on Thursday clawed back some of the ground they lost a day earlier in their biggest loss since October. The commerce department said the US economy shrunk by 3.5% last year, with the growth of 4.0% annualized in the fourth quarter moderating from the torrid paces of the second and third quarters.
Other data showed an unexpected drop in new jobless claims.
A plethora of large companies, including Apple, McDonald's, Comcast and Tesla, reported results. Most topped expectations.
The S&P 500 rose 36.61 points, or 1%, to 3,787.38. The Dow Jones Industrial Average rose 300.19 points, or 1%, to 30,603.36. The Nasdaq Composite rose 66.56 points, or 0.5%, to 13,337.16.