Closing Bell: Nifty ends at around 18,100, Sensex falls 187 pts; power, FMCG drag

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

The Nifty has given a bullish breakout recently from a base triangle pattern formation. On January 19, it witnessed a brief consolidation, which has resulted in an Inside bar pattern on the daily chart. The overall structure shows that this is only a pause & is expected to be followed by the next leg on the upside.

From a short term perspective, any dip towards 18,050-18,000 can be taken as a fresh buying opportunity. Over the next few sessions, the Nifty is expected to surpass the key hurdle zone of 18,260-18,300 & head towards 18,500.

Kunal Shah, Senior Technical Analyst at LKP Securities

The Bank Nifty continues to trade sideways as the banking index traded within a narrow range before closing slightly lower.

The sentiment remains sideways to positive as long as it remains above 41800. The momentum indicator is in positive crossover on the daily chart.

The current trend is likely to continue until the Bank Nifty falls below 41800. On the higher end, a resistance is visible at 42500.

Vinod Nair, Head of Research at Geojit Financial Services

Domestic indices snapped their previous gains amid negative sentiments from their global counterparts. Weak US consumer data and hawkish comments from the Fed's policymakers on Wednesday hammered investor risk appetite.

Lingering fears of recession dragged global bourses down, leaving the market volatile.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The uncertain global market environment coupled with a hawkish stance by the US Fed officials on interest rate hikes kept the mood gloomy throughout the trading session. Although inflation is showing signs of some moderation, concerns over a likely recession in the US and western economies is prompting investors to turn risk averse toward equities.

Technically, after a promising pullback rally, the Nifty has formed a inside body candle formation which is indicating non directional activity.

For traders, 18,050 would be the immediate support zone and below the same the index could slip till 17,950-17,900. On the flip side, above 18,050 the index could retest the level of 18,200.

Piper Serica Advisors raises Rs 75 crore via Category 1 Angel Fund

Piper Serica Advisors has raised 75 crore funds from a wide range of investors and expects to raise the remaining Rs 25 crore in a couple of months to invest in start-ups with exponential growth models.

The Angel fund has invested an undisclosed sum in ALT Mobility, Crediwatch, ZFW Dark Stores, Driffle and Oditly.

Dilip Parmar, Research Analyst, HDFC Securities

It was a muted day after Wednesday’s gain amid lacklustre domestic equities and weaker Asian currencies. However, the start-ups are getting good responses from institutional investors which are supporting the rupee.

Market participants started positioning for SBI green bond inflows and Adani’s FPO inflows.

In the near-term, trend for USDINR remains bearish and breaching 81.20 pave way for 80.60 while on the higher side 81.70, the 100-day simple moving average will act as resistance.

Rupee Close:

Indian rupee closed 11 paise lower at 81.35 per dollar against previous close of 81.24.

Market Close

: Benchmark indices ended lower in the volatile session on January 19.

At Close, the Sensex was down 187.31 points or 0.31% at 60,858.43, and the Nifty was down 57.50 points or 0.32% at 18,107.80. About 1549 shares have advanced, 1867 shares declined, and 117 shares are unchanged.

Adani Enterprises, Asian Paints, Tata Motors, IndusInd Bank and Kotak Mahindra Bank were among the top losers on the Nifty, while gainers were Coal India, UPL, ONGC, SBI Life Insurance and BPCL.

Among sectors, power, FMCG and auto down 0.5-1 percent.

BSE midcap and smallcap indices ended on flat note.

Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company

The street is expecting Finance Minister to bat like Suryakumar Yadav, bowl like Umran Malik and field like Ravindra Jadeja.

Market expects budget to be growth oriented by increasing spend in infrastructure, healthcare and education. The budget should take steps to tackle these challenges facing Indian economy viz. subdued consumption at the bottom of the pyramid, control widening trade deficit and boost private sector investment.

The budget has to assure the investor that it is on the path to fiscal prudence while keeping tax rates stable. This is possible if budget 2023 raises non tax resources by asset monetisation and plug tax loopholes.

BSE Auto index slipped 0.5 percent dragged by Tata Motors, Cummins India, Tube Investments of India

Polycab India Q3

Motilal Oswal View on IndusInd Bank

Broking house reiterate its 'Buy' rating with a Target Price of Rs 1,550.

The banks operating performance remains on track, led by healthy NII growth and controlled provisions

Asset quality remains steady, driven by lower slippages

The management is guiding for continued momentum in loan growth and is looking to end FY23 with a growth of 20%

IndusInd Bank was quoting at Rs 1,199.75, down Rs 22.75, or 1.86 percent.

Kaustubh Pawaskar- Analyst, Sharekhan by BNP Paribas: 

Asian Paint’s performance was miss on estimates with revenues and PAT growing by 1.3% and ~7% respectively with sales volume in decorative paints business remaining almost flat.

As expected gross margins and the EBIDTA margins improved on sequential basis. Domestic decorative paint business witnessed recovery in Nov & Dec after muted performance in October affected by delayed monsoon and price hikes in portfolio.

If commodity prices decline from current level it will the company to post better margins ahead and also help in taking relevant pricing actions to improve volume growth ahead.

The stock has underperformed in the recent past and any further correction can be considered as a good opportunity to accumulate quality consumer goods company from long term perspective.

Market at 3 PM

The Sensex was down 212.42 points or 0.35% at 60833.32, and the Nifty was down 64.20 points or 0.35% at 18101.10. About 1348 shares have advanced, 1881 shares declined, and 126 shares are unchanged.

Here are the stocks that locked on the upper circuit or have only buyers; click to view more

Gulshan Polyols to acquire 40% stake in JGN Sugar and Biofuels

Gulshan Polyols has received board approval for acquisition of 40% stake in JGN Sugar and Biofuels. With this, it would be an associate company of Gulshan. The acquisition is expected to be completed over a period of next 3 months.

Gulshan Polyols was quoting at Rs 244.75, down Rs 4.60, or 1.84 percent on the BSE.

December Aviation Data

Domestic Airline Traffic up 14 percent YoY at 12.7 million.

IndiGo market share at 54.9 percent against 55.7 percent and SpiceJet market share at 7.6 percent versus 7.5 percent, MoM.

Vistara market share at 9.2 percent against 9.3 percent and Air India market share at 9.2 percent versus 9.1 percent, MoM.

Credit Suisse View on IndusInd Bank

Research firm has maintained ‘Outperform’ rating on the stock with a target at Rs 1,430 per share.

The firm has cut FY23-25E EPS estimates by 2-3% on the back of higher opex and expect RoEs to improve to 16%, reported CNBC-TV18.

Havells India Q3

Net profit was down 7.2% at Rs 284 crore against Rs 306 crore (YoY). Revenue was up 12.8% at Rs 4,120 crore against Rs 3,652 crore (YoY). EBITDA slipped 3.8% at Rs 424 crore against Rs 441 crore (YoY). EBITDA margin at 10.3% against 12.1% (YoY). Havells India was quoting at Rs 1,213.20, up Rs 10.85, or 0.90 percent. It has touched an intraday high of Rs 1,223.85 and an intraday low of Rs 1,189.00.

Kuantum Papers Q3

Net profit at Rs 57.3 crore against Rs 4 crore (YoY). Revenue jumped 52.4% at Rs 350.6 crore against Rs 230 crore (YoY).

European Markets Updates

Automobile Corporation Q3

Net profit was up 20.6% at Rs 4.1 crore against Rs 3.4 crore (YoY). Revenue was up 15.2% at Rs 87.7 crore against Rs 76.1 crore (YoY). EBITDA went down 14.6% at Rs 4.3 crore against Rs 4.8 crore (YoY). EBITDA margin at 4.7% against 6.3% (YoY). Automobile Corp of Goa (ACGL) was quoting at Rs 872.95, down Rs 29.90, or 3.31 percent. It has touched an intraday high of Rs 925.00 and an intraday low of Rs 860.10. It was trading with volumes of 2,088 shares, compared to its five day average of 417 shares, an increase of 400.72 percent.

Happiest Mind Technologies Q3

Net profit slipped 3.1% at Rs 57.6 crore against Rs 59.4 crore (QoQ). Revenue was up 3.2% at Rs 366.9 crore against Rs 355.5 crore (QoQ). EBIT slipped 1.6% at Rs 79.5 crore against Rs 80.8 crore (QoQ). Margin at 21.7% against 22.7% (QoQ). Happiest Minds Technologies Ltd. was quoting at Rs 867.70, down Rs 13.25, or 1.50 percent. It has touched an intraday high of Rs 889.80 and an intraday low of Rs 858.45.

Market at 2 PM

The Sensex was down 148.46 points or 0.24% at 60897.28, and the Nifty was down 46.30 points or 0.25% at 18119. About 1443 shares have advanced, 1759 shares declined, and 133 shares are unchanged.

Datamatics Global Services Q3 earnings:

Datamatics Global Services has recorded 24% jump in its Q3Fy23 revenue at Rs 372.6 crore against Rs 300.8 crore and profit was up 24.1% at Rs 45.9 crore versus Rs 37 crore, YoY.

Datamatics Global Services was quoting at Rs 293.45, up Rs 16.95, or 6.13 percent on the BSE.

CLSA View on IndusInd Bank

Brokerage house has kept ‘Buy’ rating with a target at Rs 1,500 per share as the Q3 was largely in-line on core PPoP & PAT.

The NIM in-line with increased corporate book yields offsetting higher cost of funds and loan growth remained strong.

The risk reward is favourable and CEO extension is a key near-term monitorable, reported CNBC-TV18.

Asian Paints Q3 earnings

Asian Paints Q3 net profit was up 6.4% at Rs 1,097 crore versus Rs 1,031.3 crore, YoY.

Revenue was up 1.7% at Rs 8,608 crore versus Rs 8,527 crore, YoY.

Earnings before interest, tax, depreciation and amortization (EBITDA) was up 7.1% at Rs 1,582.7 crore versus Rs 1,542.3 crore and EBITDA margin at 18.4% versus 18.1%, YoY.

Nifty Energy index fell 0.6 percent dragged by Adani Green, Adani Transmission, Tata Power

Meghmani Finechem Q3 results:

Meghmani Finechem has reported 10.8 percent jump in its Q3 net profit at Rs 77.2 crore versus Rs 69.8 crore and revenue was up 27.4% at Rs 537.8 crore against Rs 422.2 crore, YoY.

Meghmani Finechem was quoting at Rs 1,184.50, down Rs 12.45, or 1.04 percent.

ICICI Securities Q3 earnings:

ICICI Securities has posted 26.6 percent fall in its Q3 net profit at Rs 279.1 crore versus Rs 380.2 crore and revenue was down 6.7% at Rs 878.8 crore versus Rs 941.6 crore, YoY.

ICICI Securities Ltd. was quoting at Rs 500, down Rs 11.40, or 2.23 percent on the BSE.

Alembic Pharma gets USFDA tentative approval for Acalabrutinib Capsules

Alembic Pharmaceuticals has received tentative approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA), Acalabrutinib Capsules, 100 mg.

The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Calquence Capsules, 100 mg, of AstraZeneca UK Limited (AstraZeneca).

Geojit View on L&T Finance Holdings:

Maintain 'Buy' rating on the stock with a rolled forward target price of Rs 110 based on 1.1x FY25E BVPS

L&T Finance Holdings long-term growth is promising, with continued focus and steady progress on retailisation, along with its strategy of exiting non-core businesses

Prudent ALM management has helped keep costs under control as well, while increase in policy repo rates should help improve yields hereon

The accelerated sell down of its wholesale business and focus on rapidly scaling the high margin retail portfolio should aid NIM
positively in the future

L&T Finance Holdings was quoting at Rs 95.25, up Rs 0.10, or 0.11 percent on the BSE.

Manasi Tata takes over as Vice Chairperson of Toyota Kirloskar Motor

Toyota Kirloskar Motor today announced that Ms. Manasi Tata will take over as the new Vice Chairperson with immediate effect. Furthermore, Ms. Manasi will also take over as the Vice Chairperson of Toyota Kirloskar Auto parts (TKAP).

The resolution passed in its board meeting, comes after the untimely demise of Late. Mr. Vikram S. Kirloskar, former Vice Chairman of Toyota Kirloskar Motor.

Tata Motors JLR Managing Director Rohit Suri retires

Market at 1 PM

Benchmark indices were trading lower amid volatility with Nifty holding above 18100.

The Sensex was down 155.21 points or 0.25% at 60890.53, and the Nifty was down 50.30 points or 0.28% at 18115. About 1455 shares have advanced, 1714 shares declined, and 138 shares are unchanged.

Puneet Maheshwari, Director, Upstox

:

A prime focus of the 2023 budget may be to act on the several lessons and learnings that the previous year brought with it. Our industry is extremely dynamic and subject to the impact of a number of extrinsic factors.

Just like our country’s vision of Make-In-India, from a broker's perspective, the budget should also focus on Trade-In-India. The government should consider regulations that make trading and investing in India a seamless and rewarding journey.

From a trader/investor perspective, it will be beneficial to remove LTCG on equities, which is currently at 10% if the capital gain is more than Rs 1 lakh in a financial year. It would also be ideal to introduce tax exemption on STCG up to Rs 1 Lakh.

In order to put more money in the hands of our people, the Government should also consider eliminating the tax on dividend payouts, lowering the tax bracket for investors, and increasing the basic tax exemption level from 2.5 lakhs to 5 lakhs or higher. More cash in the hands of the people will mean more money to invest.

For the overall fintech industry too, which is growing rapidly, there needs to be a mandate to regulate and simplify taxation, like on ESOPs, and provision of incentives for adopting AI(Artificial Intelligence) and ML(Machine Learning). Further, software products attract a GST of 18%. A reduction in GST will promote development of indigenous technologies by fintech players. Creation of fintech innovation funds will be another avenue to incentivise start-ups.

Broadly, the budget should not only be concerned with improving the country's economy, but also take a comprehensive approach to enhancing economic conditions for every citizen. We expect this budget to favour the needs of industries across India’s economic spectrum, and look forward to seeing how it unfolds.

SBI raises Rs 9,718 crore through infra bonds at coupon rate of 7.70% 

State Bank of India has raised Rs 9,718 crore through its second infrastructure bond issuance at coupon rate of 7.70 percent. The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment. The tenor of these bonds is 15 years.

State Bank of India was quoting at Rs 588.50, down Rs 2.90, or 0.49 percent on the BSE.

Jefferies View on IndisInd Bank

Broking firm has maintained ‘Buy’ rating with a target at Rs 1,600 per share.

The profit was tad ahead of estimates, while NII growth of 18% was healthy & are encouraged to see slight rise in NIMs.

The slippages were tad higher in CV/CE & MFI loans, see these as blips that should normalise and retail deposit growth was healthy & better than select peers.

However, clarity on CEO extension will help re-rating, reported CNBC-TV18.

Shemaroo Entertainment Q3 profit falls 45.4%:

Shemaroo Entertainment has reported a 45.4% year-on-year decline in consolidated profit at Rs 1.03 crore for quarter ended December FY23. Consolidated revenue from operations surged 66.3% to Rs 149.56 crore compared to year-ago period.

Shemaroo Entertainment was quoting at Rs 150.75, down Rs 7.90, or 4.98 percent.

Nifty FMCG index shed 0.7 percent dragged by HUL, Tata Consumer Products, United Spirits

KIOCL executes mining lease deed with Govt. of Karnataka

KIOCL informed that the Mining Lease deed document executed between Govt. of Karnataka and KIOCL for the grant of a mining lease for Iron Ore and Manganese Ore, over an extent of 388 ha for a period of 50 years in Devadari Range, Sandur Taluk, Ballari District, Karnataka State, by paying the total amount of Rs 329.17 crore.

KIOCL was quoting at Rs 218.10, up Rs 3.00, or 1.39 percent.

Shanthi Gears to purchase Land and buildings at Sanand, Gujarat for expansion

Shanthi Gears has entered into an agreement with M/s. Shreeji Metazine LLP for purchase of Land and buildings at Sanand, Gujarat for expansion of its Gear manufacturing and servicing activities.

Market at 12 PM

Benchmark indices erased most of the intraday losses and trading flat in the volatile session.

The Sensex was down 123.67 points or 0.20% at 60922.07, and the Nifty was down 41.50 points or 0.23% at 18123.80. About 1484 shares have advanced, 1627 shares declined, and 150 shares are unchanged.

Buzzing

Ugro Capital has crossed AUM of Rs 5,000 crore in quarter ended December FY23, coming in at Rs 5,095 crore, up 97% compared to Rs 2,589 crore in Q3FY22.

Quarterly gross loan origination for December FY23 quarter was Rs 1,874 crore, up 78% compared to Rs 1,053 crore in Q3FY22.