Closing Bell: Sensex rises 900 points, Nifty above 17,850; Adani Ent rebounds strongly after worst ever fall

Anindya Banerjee, VP - Currency Derivatives & Interest Rate Derivatives at Kotak Securities

USDINR spot closed 35 paise lower at 81.82, as sentiment improved in local and heavy intervention was suspected.

Over the next week, we could see USDINR trade within a broad range of 81.50 and 82.20 levels. Key event will be the RBI monetary policy, where RBI is expected to raise rates by 25 bps.

Rupak De, Senior Technical Analyst at LKP Securities

On the daily chart, the index has continued its range within the falling channel. However, on the daily chart, we find that the index has found support at the lower band of the falling channel before moving higher.

In the near term, the index may continue recovering towards 17,950–18,000. On the lower end, support is visible at 17,450.

Ameya Ranadive of Choice Broking

Domestic equities are rising as a result of dovish comments from global central banks. The European Central Bank (ECB) and the Bank of England (BoE) followed suit a day later after the United States Federal Reserve acknowledged in its monetary policy meeting on Wednesday that the disinflationary process may have begun.

The volume profile suggests that the Index may find support around 17500-17400. In terms of OI data, the highest OI was observed on the call side at 18000, followed by 18100 strike prices, while the highest OI was observed on the put side at 17600 strike price. Bank Nifty, on the other hand, has support at 40500-41000 and resistance at 42000-42400.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty, in the week gone by, had breached its 40 WEMA on an intraweek basis; however received support near the lower end of the downward sloping channel & the 200 DMA & recovered thereon.

The recovery picked up momentum on February 03 as the index surpassed the hurdle zone of 17,650-17,700. Consequently, the Nifty is approaching to climb above the 20 DMA & can test the level of 18,000 on the higher side. On the other hand, the near term support is placed at 17,700 with the major support near 17,350.

Weekly Outlook: Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities Ltd

During the week, the Nifty traded below the 20 day SMA (Simple Moving Average) mark and also breached the important support level of 17800 and also formed a long bearish candle on weekly charts. Technically, a minor pullback rally is possible if the index trades above 17650. On the flip side, selling pressure is likely to accelerate only after the dismissal of 17550 and below the same the index could slip till 17400. Extended correction could drag the index till the 200 day SMA or 17300.

Anuj

We expect Rupee to trade with a slight positive bias as rebound in domestic equities, may led to fresh foreign inflows. Decline in crude oil prices and weak Dollar amid dovish Fed may support Rupee at lower levels. Markets participants may remain cautious ahead of non-farm payrolls and ISM services PMI data from US. While the payrolls data is expected to show slowdown in pace of job additions, services PMI is expected to show the sector move to the expansion territory.USDINR spot price is expected to trade in a range of Rs 81.20 to Rs 82.80.

Rupee At Close | Rupee ends at 81.83/$ against Thursday’s close of 82.17/$

Markets At Close

Sensex gained 909.64 points or 1.52 percentto close at 60,841.88. Nifty gained 243.60 points or 1.38 percent at 17,854. About 1304 shares advanced, 2128 shares declined, and 127 shares were unchanged.

Goldman Sachs, JPMorgan say Adani debt offers value to trading clients

FM Nirmala Sitharaman To Network18

Kansai Nerolac Q3

-Net profit down 14.2 percentat Rs 109.9 crore
-Revenue up 1 percentat Rs 1,827 crore
-EBITDA down 7.8 percentat Rs 195.5 crore
-Margin at 10.7 percent vs 11.7 percent

Adani Enterprises makes a full recovery from the worst ever fall in history

After falling 35 percentin morning trade, the stock broke into green after rating agencies showed confidence on Adani's capability of repaying debt.

Divi's Labs Says

-Input costs softened to some extent in Q3
-Q3 margin down on change in product mix & high tax rate
-Margin may improve in coming quarters
-Price pressure in generic compounds has impacted biz
-Expect raw material prices to ease
-Expect profit to improve QoQ
-Planning to invest in new technologies

Star Cement Q3

-Net profit up 25 percent YoY at Rs 30 crore
-Revenue up 15.4 percent YoY at Rs 623.5 crore
-EBITDA up 81.1 percent at Rs 65.2 crore
-Margin at 10.5 percent vs 6.6 percent YoY

Aban Offshore Q3

-Net loss at Rs 287.4 crore vs loss of Rs 327 crore YoY
-Revenue down 42.2 percentat Rs 78.9 crore vs Rs 136.5 crore
-EBITDA loss at Rs 5.4 crore vs loss of Rs 1.9 crore YoY

Borosil Q3

-Net profit down 6 percentYoY at Rs 23.3 crore
-Revenue up 7.9 percentat Rs 280.6 crore
-EBITDA down 45.1 percentat Rs 21.3 crore
-EBITDA margin at 7.6 percentvs 14.9 percent

Markets At 2 PM

Sensex is up 638.03 points or 1.06 percentat 60,570.27. Nifty is up 148points or 0.84 percentat 17,759. About 1031 shares have advanced, 2224 shares declined, and 91 shares are unchanged.

Total says exposure to Adani is $3.1 billion of capital employed

Bank of Baroda Q3 Earnings

The company reported 75.4 percent jump in its Q3 net profit at Rs 3,853 crore versus Rs 2,197 crore. Net interest income (NII) up 26.5 percentat Rs 10,818 crore versus Rs 8,552 crore, YoY.

Moody’s Investors Services on Adani Group

Moody’s ratings for Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, and Adani Transmission Limited are underpinned by their regulated infrastructure businesses with long-term sales contracts, or their strong operating cash flows and dominant market position.

Given the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a short-seller report highlighting governance concerns, our immediate focus is primarily on assessing the rated entities’ overall financial flexibility, including their liquidity position and access to funding to support refinancing and ongoing growth initiatives, saidMoody’s.

Nevertheless, these adverse developments are likely to reduce the group’s ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years. We recognise that a portion of the capex is deferrable, and the rated entities do not have significant maturing debt until FY2025. it added.

CLSA View on Titan Company

Research firm has maintained 'buy' call on the stock with a target of Rs 3,000 per share.

There was a double-digit revenue growth across the segments but margin moderates. The steady jewellery growth is continues.

There is an optimistic outlook for next quarter and even more attractive entry point post correction, reported CNBC-TV18.

Divis Laboratories tumbles after 66% fall in its Q3FY23 net profit

Divis Laboratories has posted 66 percent fall in its Q3FY23 net profit at Rs 306.8 crore versus Rs 902.2 crore YoY. Revenue is down 31.5 percentat Rs 1,707.7 crore versus Rs 2,493.3 crore, YoY.

Jubilant Pharmova Q3 Earnings:

Jubilant Pharmova has reported loss of Rs 15.67 crore in the quarter ended December 2022 versus profit of Rs 50.9 crore. Revenue is up 18.5 percentat Rs 1,552.5 crore versus Rs 1,310.5 crore, YoY.

Zydus Lifesciences posts 11.7 percent jump in its Q3 net profit at Rs 547.9 crore

Zydus Lifesciences has posted 11.7 percent jump in its Q3 net profit at Rs 547.9 crore versus Rs 490.6 crore and revenue was up 19.8% at Rs 4,362 crore versus Rs 3,639.8 crore, YoY.

Zydus Lifesciences was quoting at Rs 429.60, down Rs 3, or 0.69 percent.

Total Energies’ exposure to Adani Group

Market at 1 PM

Benchmark indices were trading near day's high with Nifty around 17700.

The Sensex was up 407.30 points or 0.68% at 60339.54, and the Nifty was up 74.20 points or 0.42% at 17684.60. About 882 shares have advanced, 2336 shares declined, and 103 shares are unchanged.

No immediate impact on rated Adani Entities’ credit profiles from "Short-Seller report”: Fitch Ratings

Fitch Ratings on February 3 said that there is no immediate impact on the ratings of the Adani entities and their securities following a “short-seller report” alleging malpractices at Adani group, and expects no material changes to its forecast cash flow.

There are also no near-term significant offshore bond maturities – earliest in June 2024 for Adani Ports and Special Economic Zone Limited (APSEZ, BBB-/Stable); December 2024 for Adani Green Energy Limited Restricted Group 1 (AGEL RG1, BB+/Stable); and 2026 or beyond for all other entities – reducing refinancing risks and near-term liquidity risks, it said.

GMM Pfaudler Q3 profit falls 41% to Rs 18.67 crore

GMM Pfaudler has reported a 41.3% year-on-year decline in profit at Rs 18.67 crore for quarter ended December FY23 hit by negative other income and exceptional loss.

Revenue for the quarter at Rs 792.3 crore grew by 23.4% and EBITDA surged 44% to Rs 118.4 crore compared to year-ago period with margin expansion of around 2 percentage points.

Mahindra Lifespace Developers Q3 profit jumps 37% to Rs 34.1 crore 

Mahindra Lifespace Developers has registered a 37.2% year-on-year growth in consolidated profit at Rs 34.1 crore for December FY23 quarter with EBITDA loss narrowing significantly to Rs 11.4 crore and exceptional gain of Rs 27.08 crore.

Revenue surged 668% YoY to Rs 186.9 crore for the quarter.

FACT Q3 Results

Fertilisers and Chemicals Travancore has posted net profit at Rs 165.8 crore in the quarter ended December 2022 versus Rs 43.6 crore YoY and revenue is up 42.5 percentat Rs 1,722 crore versus Rs 1,208.5 crore, YoY.

Fertilisers and Chemicals Travancore was quoting at Rs 288.10, up Rs 10.20, or 3.67 percent.

BSE Healthcare index fell 0.5 percent dragged by Gujarat Themis Biosyn, Dr. Lal PathLabs, Hikal

Prabhudas Lilladher View on Titan Company

Broking firm has upgraded the stock to 'buy' and increase its FY23/FY24/FY25 EPS estimates by 1.5 percent/2 percent/2 percent and target price to Rs 2905 (Rs 2875 earlier) given strong underlying demand trends across divisions in Jan 23 and ~17 percent correction from the peak.

3Q results show disappointment in jewellery margins as one off impact of gains in studded business waned off.

Jewellery business outlook remains robust with Golden Harvest scheme enrollments & gold exchange back to pre covid levels.

Eyewear and CaratLane are have reached critical mass with 9MFY23 EBIT in Eyewear at Rs 960 million while CaratLane reported profit of Rs 1.14 billion.

Large Deals on the BSE:

TeamLease Services board approves buyback equity shares:

The Board of Directors of TeamLease Services at its meeting held on February 03, 2023 has, considered and approved, subject to the approval of shareholders, the proposal for buyback of fully paid up equity shares of the company having a face value of Rs 10 not exceeding 3,27,869 Equity Shares (representing 1.92 % of the total paid-up capital of the Company as on March 31, 2022) at a price of Rs 3050 per share.

BSE Fast Moving Consumer Goods index shed 0.6 percent dragged by S H Kelkar and Company, Shree Renuka Sugars, BCL Industries

Adani Enterprises Large Trade | 35.1 lakh shares (0.3% equity) worth Rs 411.5 crore change hands at an average price of Rs 1,170 per share, reported CNBC-TV18

Market at 12 PM

Benchmark indices were trading higher with Nifty around 17650.

The Sensex was up 260.27 points or 0.43% at 60,192, and the Nifty was up 35.70 points or 0.20% at 17,646. About 822 shares have advanced, 2346 shares declined, and 98 shares are unchanged.

Eclerx gains on strong Q3 show 

Eclerx Services has recorded a 23.2% year-on-year growth in consolidated profit at Rs 131.3 crore for quarter ended December FY23 despite fall in operating profit margin that hit by higher employee expenses, led by other income and topline.

Revenue for the quarter grew by 23% YoY to Rs 687 crore compared to year-ago period.

Apollo Tyres Q3 profit jumps 31% to Rs 292 crore

Apollo Tyres has reported a 31% year-on-year growth in consolidated profit at Rs 292.1 crore for December FY23 quarter despite spike in input & finance costs.

Revenue for the quarter at Rs 6,423 crore increased by 12.5% and EBITDA jumped 23% to Rs 913.4 crore with margin expansion of 120 bps compared to year-ago period. Jaimini Bhagwati is appointed as Independent Director on the board.

Apollo Tyres touched 52-week high of Rs 343 and quoting at Rs 322.50, down Rs 8.85, or 2.67 percent.

Fall from Day's High in Sensex Stocks

CLSA View on Dabur India

Broking firm has kept 'outperform' rating on the stock with a target at Rs 620 per share.

The rural slowdown is concerning, which is a critical factor for stock re-rating.

The higher rural salience affects the growth, while share gains are continued.

The inflationary pressure is partially negated with lower A&P spend, rural weakness is concerning and central India pressure intense, reported CNBC-TV18.

India Cements Q3 earnings:

The company has posted standalone net profit at Rs 90.7 crore versus profit of Rs 3.3 crore and revenue has grown 10 percentYoY to Rs 1,219.5 crore

Sharekhan View on Titan Company

Broking firm has maintained its 'buy' call on the stock with a revised price target of Rs 2,950

Q3 performance can be considered as aberration and the company should see good growth with stable margins in the quarters ahead

The company is aiming to generate revenue CAGR of over 20 percent revenue during FY2022-FY2027 on back of its ambitious growth plan in the medium term

This along with consistent margin improvement will help cash flows to improve strongly in the coming years