Closing Bell: Nifty ends near 18,000, Sensex falls 236 points dragged by FMCG, metal, pharma

Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities

Markets ended an uninspiring week on a lower note as upside momentum has been losing traction. The benchmark Nifty traded with a negative bias taking over the negative baton from weak overnight Wall Street cues.

Technically, the bias will shift to bullish only above the 18265 mark. Until then, the downside risk will be at Nifty’s make-or-break support at 17853 mark.

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

The Nifty continued to consolidate just above the 20 WMA for yet another week. On the weekly chart, it has formed a Doji pattern for the second consecutive week. This shows indecision in the minds of the market participants.

The daily chart reveals that the index has moved out of a base triangle formation. Post the breakout, however, the Nifty is witnessing a brief consolidation before it embarks on a larger up move.

Immediate support is at 18000 where fresh buying interest can be seen. The short term bullish stance holds true as long as the Nifty trades above the swing low of 17760. On the higher side, the Nifty is expected to surpass the key hurdle zone of 18260-18300 & head towards 18500.

Kunal Shah, Senior Technical Analyst at LKP Securities

On a closing basis on the daily chart, the Bank Nifty index failed to break through the barrier of 42700. The index range is between 42000 and 42700, and a break of this range will lead to trending moves on either side.

The bulls are forming solid support at the lower end, which if broken will result in a sharp downward correction.

Amol Athawale, Deputy Vice President - Technical Analyst, Kotak Securities

Local markets underperformed other Asian peers in a lacklustre trend as absence of any fresh positive triggers continued to weigh on the sentiment. Profit taking in telecom and realty shares led the downfall even as selective buying was seen in banking, power and oil & gas shares.

The only certainty that is seen in the markets today is bouts of intra-day volatility in a particular range.

Technically, on weekly charts, the Nifty has formed a long legged Doji Candlestick which is indicating non directional activity. For the index, 18000 or 20-day SMA would act as a sacrosanct support zone in the near future. And above the same, the index could retest the level of 18150-18200. On the flip side, below 18000 a bearish sentiment is likely to accelerate and below the same the index could slip to 17850.

Rupak De, Senior Technical Analyst at LKP Securities:

Nifty remained sideways during the week as the benchmark index failed to provide any directional movement. On the higher end, it failed to reclaim the 50-day exponential moving average, which is considered a line of polarity between bullish and bearish market sentiment for the short term.

Besides, it remained below the 50-week exponential moving average. The sentiment remains indecisive as the Nifty forms a back-to-back doji pattern on the weekly chart. However, the long-term bullish setup remains intact, with the higher top, higher bottom formation remaining in force.

On the lower end, support is intact at 17,750, resistance on the higher end is pegged at 18,300. Breakout on either end to confirm the directional trend.

Vinod Nair, Head of Research at Geojit Financial Services

Shaking off the weak lead from Wall Street, domestic indices attempted to trade higher due to economic optimism that stemmed from China’s reopening. However, concerns over the global economic slowdown eventually caught up and dragged markets lower.

All sectors bled, barring banking stocks, ahead of the release of key earnings by private banking majors.

Rupee Close:

Indian rupee closed 23 paise higher at 81.12 per dollar against previous close of 81.35.

Market Close:

Benchmark indices ended lower in yet another volatile session on January 20.

At Close, the Sensex was down 236.66 points or 0.39% at 60,621.77, and the Nifty was down 80.10 points or 0.44% at 18,027.70. About 1533 shares have advanced, 1865 shares declined, and 146 shares are unchanged.

HUL, Asian Paints, Bajaj Finance, JSW Steel and Nestle India were among the biggest losers on the Nifty, while gainers included Coal India, HDFC Bank, Power Grid Corporation, HDFC and ITC.

Metal, pharma and FMCG indices shed nearly 1 percent each.

BSE midcap and smallcap indices lost 0.5 percent each.

Nomura View On Persistent Systems:

-Buy rating, target at Rs 4,950 per share
-Stage set for big earnings upgrades by street
-Robust growth with margin expansion continues
-Robust execution drives Q3 beat not withstanding higher-than-usual furloughs
-Record-high deal wins sets stage for strong growth in FY24
-Forecast EBIT margin of 16.3 percent in FY24 and 17.8 percent in FY25, reported CNBC-TV18.

Persistent Systems was quoting at Rs 4,325, up Rs 67.45, or 1.58 percent on the BSE.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Indian Rupee appreciated by 0.28% on Friday on soft Dollar and FII inflows on Thursday. However, weak domestic equities and surge in crude oil prices capped sharp gains.

Dollar declined on increasing odds of a 25-bps rate hike by FOMC following disappointing economic data coming out from the US. US Federal Reserve Vice Chair Lael Brainard hinted that Fed may hike rates at a slower pace by 25 bps in the next FOMC meeting in February and is expected to hold higher rates for longer to tame inflation.

We expect Rupee to trade with a positive bias on a weak tone in the greenback. However, concerns over global economic growth and surge in crude oil prices may cap sharp upside.

Traders may focus on existing homes sales data and comments from FOMC members. USDINR spot price is expected to trade in a range of Rs 80.50 to Rs 81.80.

Jefferies View on Hindustan Unilever

Research house maintained ‘buy’ rating on the stock and kept the target at Rs 3,100 per share.

The company clarified that requisite regulatory approvals will be taken for royalty hike, while management justified that the increase based on benefits enjoyed by company.

Overall Q3 was in-line, volume growth was ahead & home-care business outperformed, reported CNBC-TV18.

Market at 3 PM

Benchmark indices erased some of the intraday losses but still trading lower with Nifty around 18000.

The Sensex was down 188.51 points or 0.31% at 60669.92, and the Nifty was down 69.30 points or 0.38% at 18038.50. About 1452 shares have advanced, 1801 shares declined, and 127 shares are unchanged.

Blue Dart Express board appoints VN Iyer as acting interim Chief Financial Officer

Mr. V. N. Iyer, Sr. Vice President, Finance & Accounts of the Blue Dart Express, has been appointed as acting interim Chief Financial Officer and as Key Managerial Personnel (KMP) of the company.

Blue Dart Express was quoting at Rs 7,139.05, down Rs 61.50, or 0.85 percent.

Max Financial Services Large Trade | 16.53 lakh shares (0.48% equity) worth Rs 138.52 crore change hands at an average of Rs 838 per share.

Max Financial Services was quoting at Rs 835.20, down Rs 3.20, or 0.38 percent.

Heritage Foods Q3 Results:

Heritage Foods has posted 32.5 percent fall in its Q3 net profit at Rs 13.7 crore against Rs 20.5 crore and revenue was up 17.8 percent at Rs 785.9 crore versus Rs 667 crore, YoY

Ramkrishna Forgings Q3 Earnings:

Ramkrishna Forgings has reported 34.6 percent jump in its Q3 net profit at Rs 61 crore versus Rs 45.3 crore and revenue was up 29.3 percent at Rs 777.5 crore versus Rs 601.3 crore, YoY.

Ramkrishna Forgings was quoting at Rs 265.30, down Rs 12.65, or 4.55 percent on the BSE.

Jubilant FoodWorks plans to add 3,000 Domino’s stores in next 12-18 months

Jubilant FoodWorks plans to add 3,000 Domino’s stores in next 12-18 months, and 40-50 stores for Popeyes India in next 12-18 months.

Under capex plan, Rs 900 crore will be funded entirely through internal accruals over a period for 12-18 months.

Jubilant Foodworks was quoting at Rs 511.85, up Rs 1.15, or 0.23 percent.

Buzzing

IndiaMART InterMESH clocked a massive 61% year-on-year growth in profit at Rs 113 crore for quarter ended December FY23, backed by other income that jumped 367% to Rs 102 crore for the quarter.

Revenue from operations grew by 34% YoY to Rs 251 crore driven by 24% increase in number of paying subscription suppliers and addition of Rs 10 crore revenue from accounting software services.

However, EBITDA declined 11% to Rs 70 crore and margin contracted 14 percentage points to 28% for the quarter compared to year-ago period.

Indiamart Intermesh was quoting at Rs 4,523, up Rs 46.30, or 1.03 percent on the BSE.

CLSA view on PVR 

-Buy rating, target at Rs 2,430 per share
-PVR collections for top movies up 75 percent QoQ; PVR-Inox merger ahead
-Q3 revenue and EBITDA ahead of estimates
-Resurgence of top movies box office collections
-Strong content line-up in 2023; screen expansions, reported CNBC-TV18.

PVR was quoting at Rs 1,620.20, down Rs 58.50, or 3.48 percent on the BSE.

Hiren Ved of Alchemy Capital Management shares his Budget wish list

Speaking to CNBC-TV18
-Tax regime stability will send a signal to international investor community
-Rate change will be problematic, tenure change will be received better
-Market is a mechanism thatdiscounts good & bad news
-Any tax rate change will bedigested by the market
-We need a stable tax regime
-Deficit number is important, there will be a glide path to fiscal consolidation

HDFC Life Q3

-Annual premium equivalent up 39.6 percentat Rs 3,625 crore vs Rs 2,597 crore YoY
-Value of new business up 30.4 percentat Rs 905 crore vs Rs 694 crore YoY
-VNB Margin at 25 percentvs 26.7 percentYoY

Markets at 2 PM

Sensex is down 160.55 points or 0.26 percentat 60697.88, and the Nifty down 56.80 points or 0.31 percentat 18051. About 1474 shares have advanced, 1744 shares declined, and 134 shares are unchanged.

Atul Q3 Results:

Atul has posted 32.2 percent fall in its Q3 net profit at Rs 105.1 crore versus Rs 155 crore while revenue is down 8 percentat Rs 1,268.2 crore versus Rs 1,380.3 crore, YoY.

Anup Rau, MD & CEO, Future Generali India Insurance:

With the 2024 Lok Sabha elections on the horizon, the expectations from this budget are high. The strategy of focusing on infrastructure development, capital expenditure, and making India a manufacturing hub, will continue to spur growth and recovery. The Centre should continue on this path, while focusing on fiscal consolidation.

As far as the insurance sector is concerned, we look forward to major changes this year. The much-awaited proposal to increase FDI limit to 100% in insurance could be taken up during the Budget ’23, which would augur well for insurers who will get fresh capital. With the uptick in healthcare costs, there is a strong case for increasing deduction limits for health insurance in the coming budget.

DCM Shriram Q3 Results:

DCM Shriram has posted net profit at Rs 342.1 crore versus Rs 349.6 crore YoY and revenue is up 21.2% at Rs 3,383.7 crore versus Rs 2,790.8 crore, YoY.

Union Bank of India Q3

Union Bank of India has posted net profit at Rs 2,244.8 crore versus Rs 1,085.4 crore and net interest income is up 20.3% at Rs 8628.1 crore versus Rs 7174.4 crore, YoY.

Taylormade Renewables bags orders worth Rs 13.52 crore

Taylormade Renewables has received work order from Shree ChemopharmaAnkleshwarPvt. Ltd. worth Rs 1.78 percent, and order worth Rs 1.18 crore from Ami Organics.

The comapny also received orders from Kunjir Bioenergy India LLP. worth Rs 10.56 crore.

The company also executed first export order to Kenya for a 100 KLD TRL RAIN Plant in current year and expects many more such work orders.

GPT Infraprojects bags order worth Rs 270 crore

GPT Infraprojects has received oders from Bridge & Roof Company (I) Limited, A Government of India Enterprise, Kolkata worth Rs 270 crore for construction of rail flyover between Allahabad - Bamhrauli comprising of earth work, pile foundation, composite steel girder, RCC deck slabs, ROB, utilities shifting and other allied works in connection with construction of RFO -2 (Phase -2) under North Central railway(NCR) Prayagraj , Uttar Pradesh.

USFDA issues Establishment Inspection Report to Laurus Labs' vizag unit-V

The pre-approval inspection (PAI) conducted by the United States Food & Drug Administration (USFDA) at company's manufacturing facility at Unit-5, Parawada, Visakhapatnam, Andhra Pradesh from 24th October 2022 to 28th October 2022

The company has received the Establishment Inspection Report (EIR) from USFDA.

Laurus Labs has touched 52-week low of Rs 347.10 and was quoting at Rs 352.75, up Rs 1.25, or 0.36 percent.

Rail Vikas Nigam forms two JVs

Rail Vikas Nigam (RVNL) has formed two JVs viz., Bengaluru Mmlp Private Limited and Chennai MMLP Private Limited.

The company has signed MoU with National Highways Authority of India (NHAI) in connection with Construction of Multi Modal Logistics Parks across PAN India under Bharatmala Pariyojana.

Market at 1 PM

The Sensex was down 25.05 points or 0.04% at 60833.38, and the Nifty was down 15 points or 0.08% at 18092.80. About 1593 shares have advanced, 1599 shares declined, and 128 shares are unchanged.

Aether Industries Q3 Results

Aether Industries has posted 37.8 percent jump in its Q3 net profit at Rs 35 crore versus Rs 25.4 crore and revenue was up 10.5% at Rs 167.1 crore versus Rs 151.2 crore, YoY.

Aether Industries was quoting at Rs 890.65, up Rs 17.80, or 2.04 percent.

Morgan Stanley View On Asian Paints:

-Underweight rating, target cut to Rs 2,516 from Rs 2,674 per share
-Q3 earnings were below consensus on top line
-Expect changing industry dynamics & rising aggression on investments to drive de-rating
-Management maintained margin guidance in the 38-40 percent band
-Management widened EBITDA margin band to 17-20 percent from 18-20 percent, reported CNBC-TV18.

Tata Motors shares gains 2% on fundraising plans

Tata Motors share price rose 2 percent as company is planning to raise $500-600 million from global investors for the EV business, Economic Times reported.

The carmaker has big plans to cement its presence in the EV segment with 10 new electric models by March 2026. It already commands bulk of the share of the EV segment in India.

The report added that the company has reached out to several marquee investors, impact funds, sovereign wealth funds from the Middle East, Korea and Singapore, as well as Canadian pension funds.

Dollar muted as growth concerns mount, yen retreats

The US dollar loitered around its seven-month lows on Friday as fears of an economic slowdown dented risk appetite, while the yen eased even as speculation swirls that the Bank of Japan (BOJ) will eventually move away from its ultra-easy policy.

The dollar index, which measures the U.S. currency against six peers, rose 0.098% to 102.12, not far off the seven-month low of 101.51 it touched on Wednesday.

The index is down 1.3% this year after sinking 7.7% in the last three months of 2022 as investors bet that the Federal Reserve will slow the pace of its interest rate rises.

Bata India appoints Anil Somani as CFO

Anil Somani is appointed as new Chief Financial Officer of Bata India. He has over 25 years of experience in finance, strategy, compliance, information management and business development functions.

Bata India was quoting at Rs 1,574.95, down Rs 11.25, or 0.71 percent.

KPI Green Energy commissions a 25 MW solar power project

KPI Green Energy: The company has announced commissioning of 25 MWDC solar power project for Greenlab Diamonds LLP, Surat under its CPP business vertical. Company also appointed Salim Yahoo as Chief Financial Officer and announced the allotment of bonus equity share in the ratio of one bonus equity share against one existing equity share to the members.

KPI Green Energy was quoting at Rs 441.25, down Rs 4.00, or 0.90 percent on the BSE.

Buzzing

IIFL Wealth Management has clocked a 16% year-on-year growth in profit at Rs 180 crore for quarter ended December FY23 on better operating and top line performance. Revenue for the quarter grew by 10% YoY to Rs 415 crore.

The company announced an interim dividend for FY23 at Rs 17 per share, sub-division of each existing equity share of face value of Rs 2 into two shares of face value of Re 1 each, and issue of one bonus equity share for every one share held.

Sharekhan View on Hindustan Unilever

Retain Buy with a reduced Price Target of Rs 2,900

Strong collaboration with parent aided HUL to double its revenue and expand EBIDTA margin by 1,000 bps over the last decade

The company has agreed to pay incremental royalty charges by 80 bps to the parent in achieving its aspiration of consistent double-digit earnings growth in the coming years

The overhang of royalty increase after a period of five years would reflect in trim-down of the valuation multiple

Hindustan Unilever was quoting at Rs 2,583.10, down Rs 67.15, or 2.53 percent.

Market at 12 PM

Benchmark indices were trading flat in the volatile session.

The Sensex was down 68.90 points or 0.11% at 60789.53, and the Nifty was down 23.10 points or 0.13% at 18084.70. About 1708 shares have advanced, 1440 shares declined, and 136 shares are unchanged.

AU Small Finance Bank Q3 profit jumps 30%

AU Small Finance Bank has recorded a 30% year-on-year growth in profit at Rs 392.8 crore for quarter ended December FY23, led by net interest income and lower provisions.

Net interest income grew by 41% to Rs 1,153 crore for the quarter with 10 bps YoY fall in net interest margin at 6.2%.

Asset quality improved with the gross non-performing assets (NPA) as a percentage of gross advances falling 9 bps QoQ to 1.81% and net NPA declining 5 bps QoQ to 0.51% for the quarter.

CLSA View on Hindustan Unilever

Brokerage house has kept ‘outperform’ rating on the stock with a target at Rs 2,950 per share amid strong top-line & volume growth.

The elevated key raw material prices impacted margin despite some improvement.

There was a new agreement with Unilever for higher royalty rates, however, as per SEBI, majority approval of minority shareholders required only if royalty exceeds 2 percent, reported CNBC-TV18.

Hindustan Unilever was quoting at Rs 2,583.90, down Rs 66.35, or 2.50 percent.

Nifty Metal index fell 0.5 percent dragged by Hindustan Zinc, JSW Steel, NALCO

Vincent K A, Research analyst at Geojit Financial Services

The need of the hour is to support farmers due to elevated inflation, and hence there is a high expectation of a higher allocation for rural development in this budget. The allocation for FY23 was Rs 1.35 trillion, but it has already been spent Rs 1.55 trillion.

Rural demand is important for overall growth, as rural India accounts for about 65% of the population. Being a pre-election budget, the usual contemplation is that it will be populist.

We can expect measures like increasing MSP (Minimum Support Prices), expansion of warehousing, micro irrigation, and credit growth, increasing the revenue of the rural market.

Other instruments we can expect is an increase in the allocation of schemes like Prime Minister Awas, Ujjwala and Saubhagya Yojana schemes, indirectly improving the standard of rural economy.

Further, steps on rationalization of tax slabs or an increase in tax exemption are positive for FMCG/Retail companies by increasing the disposable income of consumers. We do not anticipate any changes in the GST rate in the budget.