Closing Bell: Nifty ends below 17,900, Sensex falls 773 pts; financials a major hit

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

Markets went into a tailspin as investors wound up their positions on the last day of F&O expiry. Traders also liquidated their position ahead of the Adani Enterprises FPO, while migration from T2 to T1 settlement starting Friday also led to some offloading.

While trading sentiment may remain volatile, the upcoming Budget and US Fed meet next week could fuel sharp sideways movement in coming sessions.

Technically, after a double top formation, the market witnessed a sharp correction. On daily charts the Nifty has formed a long bearish candle and closed below the 18000 mark which is broadly negative.

As long as the index is trading below 18000, the weak sentiment is likely to continue and below the same the index could retest the level of 17800. Any further down side could drag the index till 17700. On the flip side, above 18000, the index could move up to 18050-18100 levels.

Kunal Shah, Senior Technical Analyst at LKP Securities

The Bank Nifty witnessed selling pressure throughout the session. On the daily chart, an upward consolidation was followed by a sharp correction, suggesting a rise in bearish bets in the space.

Furthermore, the index has dropped below the 50-day exponential moving average, confirming the downward trend. On the lower end, immediate support is visible at 41500/40800. On the higher end, resistance is visible at 42000.

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

The Nifty opened on a negative note on January 25 & tumbled down sharply as the day progressed. It breached the key daily moving averages on the way down. The larger structure, however, shows that the index is still in the range, which it has been witnessing for last one month.

It recently tested the upper end of the range & thereon it has tumbled down towards the lower end i.e. 17800-17760. This zone has been acting as a strong support & is likely to provide support this time as well. Thus unless the level of 17760 breaks, the Nifty can witness recovery within the short term range.

Ajit Mishra, VP - Technical Research, Religare Broking

Markets plunged sharply lower on the monthly expiry day and ended with a cut of over a percent. After the flat start, the Nifty index drifted gradually lower in the first half and remained in a narrow band thereafter. It finally settled at 17891.95 levels; down by 1.25%.

Meanwhile, the selling pressure was widespread wherein banking & financials lost maximum closely followed by energy and realty counters. The broader indices too traded in tandem with the trend and shed in the range of 1%-1.5%.

This decline has again pushed the Nifty index closer to the lower band of the prevailing consolidation range i.e. 17750 levels and indications from the banking pack, which holds considerable weight in the index, are pointing towards more pain ahead. We reiterate our view to prefer hedged positions and suggest adding a few shorts too.

Rupak De, Senior Technical Analyst at LKP Securities

Bears remained at the helm as the benchmark index Nifty shed more than 200 points on Wednesday. On the daily timeframe, the index remained below the 50-day exponential moving average.

On the lower end, however, the correction was limited to the upper band of the falling wedge pattern on the daily chart. The sentiment looks very weak, with the RSI in a bearish crossover. However, a further correction may occur if the price falls below 17,840. On the higher end, resistance is placed at 18000.

Vinod Nair, Head of Research at Geojit Financial Services

Indian equities witnessed significant sell-off as the market appeared apprehensive ahead of the upcoming Union Budget and Fed meeting next week.

Sentiments were dampened by persistent FII selling, where funds are being shifted to other EMs as a result of attractive valuations. Furthermore, a weak economic growth outlook that stoked recession fears pulled down global markets.

Rupee Close:

Indian rupee closed 13 paise higher at 81.59 per dollar against previous close of 81.72.

Bajaj Auto Q3

Consolidated revenue at Rs 9,315 crore and net profit at Rs 1,491 crore.

Market Close:

Benchmark indices ended lower on January 25 with Nifty around 17,900.

At Close, the Sensex was down 773.69 points or 1.27% at 60,205.06, and the Nifty was down 226.30 points or 1.25% at 17,892. About 1106 shares have advanced, 2310 shares declined, and 129 shares are unchanged.

Adani Ports, SBI, IndusInd Bank, HDFC Bank and Cipla were among the biggest losers on the Nifty, while gainers were Hindalco Industries, Maruti Suzuki, Bajaj Auto, HUL and Tata Steel.

Among sectors, bank, power, PSU bank and realty down 2-3 percent each.

The BSE midcap index fell 1.5 percent and smallcap index shed 0.8 percent.

Nomura View on Maruti Suzuki India

Brokerage house has maintained ‘Neutral’ rating on the stock with a target price of Rs 9,928.

The stronger ASPs drive Q3 revenue beat, while EBITDA was margin in-line. The new SUV ramp key positive, while weaker mass segments remain a concern.

The outlook is healthy and company targets ahead of industry growth & leadership in SUVs.

The cost outlook is stable for Q4 and forecast margin to be stronger in Q4.

The rising A&P spends, stronger JPY & regulatory costs may impact margin, reported CNBC-TV18.

Nifty PSU Bank index shed 3 percent dragged by Bank of Baroda, Canara Bank, SBI

Indraprastha Gas Q3 Results:

Indraprastha Gas Q3 net profit at Rs 278 crore and revenue at Rs 3,711 crore.

Indraprastha Gas was quoting at Rs 410.80, down Rs 13.10, or 3.09 percent.

TeamLease Services to consider proposal of bonus shares on Feb 3

The meeting of the Board of Directors of TeamLease Services is scheduled to be held on February 03, 2023, to consider and if deem fit, to review, consider and approve the proposal for buyback of the equity shares of the Company as well as matters related / incidental thereto.

TeamLease Services was quoting at Rs 2,373.90, down Rs 64.30, or 2.64 percent.

CLSA View On Colgate 

-Underperform rating, target at Rs 1,525 per share
-Volume declined 2-3%; lower margin drove earnings miss
-Domestic business grew with volume declines
-Higher A&P spend keeps margin in check; earnings declined
-Stable market share is comforting, but category volume decline is concerning

Tatva Chintan Pharma Chem Q3 profit drops 49% to Rs 11.6 crore

Tatva Chintan Pharma Chem has reported a 49% year-on-year decline in consolidated profit at Rs 11.6 crore for quarter ended December FY23, impacted by weak operating performance. Revenue at Rs 120.6 crore grew by 15% over a year-ago period and EBITDA fell by 25% YoY to Rs 17.9 crore for the quarter.

Tatva Chintan Pharma Chem was quoting at Rs 2,082.70, down Rs 102.20, or 4.68 percent.

Ashoka Buildcon receives LoA worth Rs 2,161 crore from NHAI

Ashoka Buildcon has received Letter of Award (LoA) from National Highway Authority of India (NHAI) for the Project viz. ‘Request for proposal for Construction of Four Lane Elevated Corridor and atgrade improvements from Design Ch:0+000 to Design Ch: 19+870 of Danapur – Bihta Section with providing connectivity to the existing RoB near Danapur station (0.231 km), 1.35 Km ramps & at-grade improvements to Four lane section on Danapur side and Upgradation of existing Two lane carriageway to Four Lane carriageway from Design Ch:19+870 to Design Ch:23+500 of Bihta - Koilwar section (Total Length 25.081 Kms) in the state of Bihar on EPC Mode.

The accepted Contract Value for the Project is Rs 2,161 crore.

Market at 3 PM

Benchmark indices were trading lower with Nifty below 17900.

The Sensex was down 793.65 points or 1.30% at 60185.10, and the Nifty was down 237.10 points or 1.31% at 17881.20. About 925 shares have advanced, 2346 shares declined, and 96 shares are unchanged.

Morgan Stanley View on Maruti Suzuki India

Brokerage house has maintained ‘Overweight’ rating on the stock with a target at Rs 10,483 per share.

The Q3 EBIT margin was highest in 17 quarters & above the estimates.

Incrementally, expect improving mix, leverage gains & lower discount to drive earnings and expect company’s market share to rise to 43% in FY24 versus 41% in FY23 to date, reported CNBC-TV18.

Happiest Minds Acquires Sri Mookambika Infosolutions “SMI”

Happiest Minds Technologies announced signing of definitive agreements to acquire 100% of SMI - a Madurai headquartered, profitable, IT services company through a combination of upfront and deferred equity consideration totaling Rs 111 crores.

With 400+ offshore-based employees, SMI has an annual run rate in revenues of circa USD 9 million.

Happiest Minds Technologies Ltd. was quoting at Rs 861.85, down Rs 14.60, or 1.67 percent on the BSE.

Dollar edges higher

The dollar ticked up on Wednesday in subdued trading as investors looked towards the Federal Reserve's policy decision next week, while the euro slipped from near a nine-month high.

The euro was down 0.12% against the dollar at $1.088, just off the $1.093 level reached on Friday, which was the highest since early May.

Meanwhile, the dollar was up 0.1% against the yen, at 130.28 yen per dollar, having hit an 8-month low of 127.22 on Jan. 16.

TeamLease Services Q3

Net profit went down 9.1% at Rs 29 crore against Rs 31.9 crore (QoQ). Revenue was up 2.7% at Rs 2,008.3 crore against Rs 1,955.1 crore (QoQ). EBITDA at Rs 31.7 crore against Rs 31.3 crore (QoQ). Margin at 1.6% against 1.6% (QoQ). TeamLease Services was quoting at Rs 2,389.95, down Rs 48.25, or 1.98 percent on BSE. It has touched an intraday high of Rs 2,448.60 and an intraday low of Rs 2,358.35.

2023 Budget poised to be a game changer for investors: SK Hozefa, CEO, Tradeplus Online

The upcoming Budget for 2023 is poised to be a game-changer for investors and the economy as a whole. The government is expected to unveil measures that will attract more foreign capital and boost the competitiveness of Indian businesses. One such measure that could be implemented is allowing Non-Resident Indians to open Demat accounts digitally, which could greatly increase foreign investment in the country.

Furthermore, simplification of income classifications and tax laws for short- and long-term investments could likely be addressed in the budget to make Indian markets more competitive. Additionally, a comprehensive review of Securities Transaction Tax (STT) and Commodity Transaction Tax (CTT) along to grant Industry status to the stock market could make the budget winner for the Indian stock market.

Overall, the Budget is poised to focus on measures that will drive economic growth and create a conducive environment for businesses and investors. The government's focus on attracting more foreign investment and simplifying regulations are expected to create a positive impact on the economy and boost the stock market.

Zomato sees steepest intraday fall in one year as it rebrands ‘instant

’:

A day after media reports claimed Zomato is shutting down it 10-minute food delivery service, the company has refuted the same and announced that it is rebranding the business. As per earlier reports, the company had decided to scrap Zomato Instant due to struggle with its growth amid tough market conditions and challenges in achieving profitability that the company hoped for.

“Instant is not shutting down. We are working on a new menu with our partners and rebranding the business. All finishing stations remain intact, and no people are impacted by this decision," a Zomato spokesperson said.

European Markets Updates

Cipla Q3

Net profit was up 10% at Rs 801 crore against Rs 728.6 crore (YoY). Revenue was up 6% at Rs 5,810 crore against Rs 5,478.8 crore (YoY). EBITDA rose 14.4% at Rs 1,407.4 crore against Rs 1,231 crore (YoY). Margin at 24.2% against 22.5% (YoY).

Sun Pharma launches SEZABY in US used to treat neonatal seizures

Sun Pharmaceutical Industries announced the launch of SEZABY™ (phenobarbital sodium) in the US for the treatment of neonatal seizures. SEZABY is the first and only product approved by the US Food and Drug Administration (US FDA) for the treatment of neonatal seizures in term and preterm infants. Sun Pharmaceutical Industries was quoting at Rs 1,038.20, down Rs 2.80, or 0.27 percent on BSE. It has touched an intraday high of Rs 1,039.25 and an intraday low of Rs 1,028.05.

Market at 2 PM

The Sensex was down 662.93 points or 1.09% at 60315.82, and the Nifty was down 196.70 points or 1.09% at 17921.60. About 922 shares have advanced, 2318 shares declined, and 92 shares are unchanged.

Solara Active Pharma Q3

Solara Active Pharma has posted net profit at Rs 0.4 crore versus loss of Rs 139.9 crore and revenue was up at Rs 394.7 crore versus Rs 100.3 crore, YoY.

Indian Bank Q3

Indian Bank has posted net profit at Rs 1,395.8 crore in the quarter ended December 2022 versus Rs 689.7 crore and net interest income was up 25.1% at Rs 5,499.12 crore against Rs 4,395.1 crore, YoY.

Indian Bank was quoting at Rs 291.50, up Rs 1.55, or 0.53 percent.

Morgan Stanley View On TVS Motor Company

-Equal-weight rating, target at Rs 1,121 per share
-Q3 results in-line despite weak volumes
-Company maintained its margin driven by price hikes & commodity tailwinds
-Expect margin trend to continue in near term
-Multiples at 22 for FY25 & EV disruption risks keep us equal-weight, reported CNBC-TV18.

Alert | Debut 10-Year Green Bond coupon rate fixed at 7.29%: RBI

Jyothy Labs Q3

Jyothy Labs has posted 77 percent jump in its Q3 net profit at Rs 67.4 crore versus Rs 38 crore, YoY.

Sasken Technologies Q3 profit rises 3.9%

Sasken Technologies has clocked a 3.9% year-on-year growth in consolidated profit at Rs 31.3 crore for quarter ended December FY23 despite weak operating performance, driven by higher topline and other income.

Revenue grew by 15.5% YoY to Rs 122.8 crore in Q3FY23.

Adani Group stocks under pressure

Short-seller Hindenburg Research said on Wednesday it holds short positions in India's Adani Group companies through U.S.-traded bonds and non-Indian-traded derivative instruments.

The seven listed companies of the Adani group, which is controlled by world's third richest man Gautam Adani, have an 85% downside on a fundamental basis due to sky-high valuations, Hindenburg said in the report.

Adani Green Energy Limited was quoting at Rs 1,850.20, down Rs 63.35, or 3.31 percent and Adani Total Gas was quoting at Rs 3,713.00, down Rs 172.45, or 4.44 percent.

Adani Enterprises was quoting at Rs 3,345.00, down Rs 97.75, or 2.84 percent and Adani Power was quoting at Rs 261.35, down Rs 13.45, or 4.89 percent.

Adani Transmission was quoting at Rs 2,619.90, down Rs 136.25, or 4.94 percent and Adani Wilmar was quoting at Rs 544.55, down Rs 28.60, or 4.99 percent.

Adani Ports and Special Economic Zone was quoting at Rs 715.50, down Rs 45.35, or 5.96 percent.

Olectra Greentech Q3 results:

Olectra Greentech Q3 profit rose 13.5% at Rs 14.4 crore against Rs 12.7 crore and revenue was up 23.1% at Rs 256.4 crore versus Rs 208.3 crore, YoY.

Olectra Greentech was quoting at Rs 486.85, up Rs 13.70, or 2.90 percent on the BSE.

Vardhman Textiles Q3 Results

Vardhman Textiles has reported 76 percent fall in its Q3 net profit at Rs 102 crore against Rs 429 crore and revenue was up 72.1% at Rs 2,370 crore versus Rs 1,377.7 crore, YoY.

Vardhman Textiles was quoting at Rs 298.35, down Rs 12.10, or 3.90 percent on the BSE.

Market

Benchmark indices erased some of the intraday losses but still trading lower with Nifty around 17900.

The Sensex was down 628.36 points or 1.03% at 60,350.39, and the Nifty was down 190.50 points or 1.05% at 17,927.80. About 870 shares have advanced, 2317 shares declined, and 112 shares are unchanged.

Santosh Meena, Head of Research, Swastika Investmart

Indian markets experienced a sharp fall on January F&O expiry day. There is no trigger, but the market is looking nervous ahead of the Union budget. The market is following last year's pattern because, in 2022, the Nifty saw a doji candle (which indicates a range-bound move) in the second and third weeks of January, followed by a sharp fall in the final week of January.

However, that sell-off was a buying opportunity because then we saw a sharp post-budget rally. So, as per the template, we can expect a post-budget rally in the market.

Technically, Nifty is near the critical support level of 17,800, and if it falls below this, then 17,625 and 17,425 are the next support levels. On the upside, 18,200 is a critical hurdle; above this, we can expect a rally toward 18,500 and 18,650 levels.

Buzzing

United Spirits has reported a 64.4% year-on-year decline in standalone profit at Rs 110.5 crore for December FY23 quarter impacted by lower revenue and weak operating performance.

Revenue from operations at Rs 6,612 crore fell by 25.3% compared to year-ago period and revenue (excluding excise duty) declined 3.5% YoY.

The company approved sale of entire shareholding in subsidiary Sovereign Distilleries, to Girish Jain and M Sukumar, the sole proprietor of Sri Lakshya Traders, for Rs 32 crore.

BSE Midcap index shed 1.5 percent dragged by ACC, Bank of India, Adani Power

Swaraj Engines Q3:

Swaraj Engines has posted 9.5 percent jump in its Q3 net profit at Rs 23 crore against Rs 21 crore and revenue was up 17.5% at Rs 279 crore versus Rs 237 crore, YoY.

Swaraj Engines was quoting at Rs 1,592.20, down Rs 37.80, or 2.32 percent.

CLSA View on Maruti Suzuki India

Broking house has kept ‘Sell’ rating on the stock and raised the target price to Rs 8,240 per share as the earnings beat the estimates led by richer product mix & easing costs.

The bookings remain strong aided by the new model cycle.

CLSA expect company to gain market share in SUV segment on back of recent launches and believes that overall share gains will be limited over the next 2 years, reported CNBC-TV18.

Gold retreats as traders lock in profits before US data

Gold fell on Wednesday, retreating further from last session's near nine-month peak, as some investors locked in profits and the dollar steadied ahead of US economic data that could steer the Federal Reserve's policy tightening path.

Spot gold slipped 0.6% to $1,926.79 per ounce, as of 0611 GMT, after hitting its highest since late April on Tuesday.

US gold futures were down 0.4% at USD 1,928.40.

The dollar index held steady. A stronger dollar makes greenback-priced gold less attractive for buyers holding other currencies.

Macrotech Developers Q3 profit jumps 42%

Macrotech Developers has registered a 41.7% year-on-year growth in consolidated profit at Rs 404.5 crore despite lower revenue and weak operating performance, supported by other income and lower tax cost.

Revenue for the quarter at Rs 1,774 crore declined 14%, but pre-sales grew by 16% YoY to Rs 3,035 crore compared to year-ago period.

The company reduced net debt by Rs 753 crore to Rs 8,042 crore.

Macrotech Developers was quoting at Rs 1,075.65, down Rs 3.35, or 0.31 percent on the BSE.

Quick Heal Technologies share price declines 7%

Quick Heal Technologies has posted consolidated loss of Rs 9.3 crore for quarter ended December FY23, against profit of Rs 14.3 crore in corresponding period last fiscal.

Revenue fell 16.1% to Rs 66.8 crore compared to year-ago period, while EBITDA loss at Rs 11.4 crore for the quarter against profit of Rs 20.5 crore in same period last fiscal.