Stock market recap for 29 january 2021

 

Nifty50: 13,634 ▼ 182 (-1.3%)

 Sensex: 46,285 ▼ 588 (-1.2%)

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The markets opened with a gap-up but kept drifting downward throughout the day, barring a few brief surges into the positive. However, towards the end, they plunged into the red. The selling was broad-based as 43 of the Nifty50 stocks declined today.

Among the sectoral indices, the Nifty PSU Bank and Nifty Bank rose 1.6% and 0.6%, respectively, while the Nifty Auto (-2.8%) and Nifty IT (-2.5%) were the top losers today.

 

Top gainers	Today's change
IndusInd	▲ 6.1%
Sun Pharma	▲ 4.2%
ICICI Bank	▲ 2.0%

 

Top losers	Today's change
Dr Reddy's	▼ 5.3%
Maruti	▼ 4.8%
Hero Moto	▼ 3.6%

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STOCK MARKET RECAP

Here are the top stories of the day. 

Sun Pharma’s Q3 beats street estimates

       The pharma major reported Q3 net profit of ₹1,853 crore, beating street estimates of ₹1,379 crore. Crucially, net profit more than doubled from ₹914 crore during the same period last year. The consolidated revenue rose by a more modest 8% to ₹8,837 crore. 

The surge in profits is a result of an increase in other income and improvement in global speciality sales owing to recovery from the pandemic. The company also announced an interim dividend of ₹5.5 per share. The stock closed 4.2% higher today.

 

Tata Motors’ Q3 earnings rise on JLR bounce back

       The automaker posted an impressive rise of 67.5% YoY in consolidated net profit to ₹2,941 crore. The numbers beat the street estimates of ₹1,173 crore by a wide margin. 

Meanwhile, revenue from operations rose 5.5% to ₹75,654 crore. The major driving factor was Jaguar Land Rover, which delivered an impressive 38.1% YoY rise in its profit before tax. 

On the domestic front, passenger vehicles and commercial vehicles showed marked improvement with 78% and 21% YoY rise in revenues, respectively. The stock has risen over 40% this month ahead of the results but was down 1.5% today.

 

Shriram Transport soars on improved asset quality

        The used-vehicle and fleet financer’s net interest income for Q3 rose by 2% to ₹2,202 crore, beating street estimates of ₹2,076 crore. However, net profit declined 17% to ₹727.7 crore, owing to a nearly 52% YoY increase in loan provisioning, which stood at ₹674 crore. 

Its asset quality showed sharp improvement with net NPA at 3.22% as compared to 6.09% last year. The disbursements rose 9.9% YoY. The stock surged 16.2% today.

 

Dr Reddy’s Q3 underperforms expectations 

  

       The shares of Dr Reddy’s Laboratories fell 5.3% today as the company reported a consolidated net profit of ₹20 crore for Q3 versus street expectations of ₹709 crore. The profits were impacted by an impairment charge of around ₹600 crore. 

Its revenues grew 12% YoY to ₹4,941 crore, driven by new product launches and volume increase in the European and Indian businesses which grew 34% YoY and 26% YoY, respectively. 

 

Pre-Covid growth levels expected in two years

       As per the 2021 Economic Survey, India is expected to grow at 11% in FY22, 6.5% in FY23 and 7% in FY24. However, as the rollout of the vaccines picks up traction, economic activities would get normalized, leaving upside potential to the above estimates. 

What is also encouraging is that the Indian government may continue its expansionary fiscal stance in order to sustain the recovery in demand.

 

Closing bell

This week, the Indian markets witnessed a 5% decline, the steepest weekly fall in the last eight months. Not just Indian markets, even major equity markets globally are reeling under volatility and selling pressure. The India VIX has risen 20% this month, which suggests that traders expect volatility to rise in the days ahead.
On Monday, sector-specific movements based on Budget announcements will be the order of the day. Generally, most Budget positives and negatives get factored in the price on the same day.

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Good to know

What is an InvIT?
Similar to a mutual fund, an infrastructure investment trust or InvIT is an instrument that allows individuals and institutional investors to pool together capital to develop infrastructure projects. The investors earn a small portion of the income from the project as a return.

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Disclosures and Disclaimer

 

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.

Upstox Team

Authorised Partner

Stock market recap for 28 january 2021

 

Nifty50: 13,817 ▼ 149 (-1.0%)

 Sensex: 46,874 ▼ 535 (-1.1%)

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Continuing the trend from the past few days, the markets displayed weakness from the start and ended about 1% below yesterday’s closing. The day witnessed a decline in 33 of the Nifty50 stocks. 

Among the sectoral indices, the Nifty Bank gained 0.2%. Meanwhile, the Nifty Realty and Nifty IT fell 2.2% and 2.1%, respectively.

 

Top gainers	Today's change
Axis Bank	▲ 5.5%
SBI	▲ 2.6%
Indian Oil	▲ 1.5%

 

Top losers	Today's change
HUL	▼ 3.6%
Maruti	▼ 3.4%
Wipro	▼ 3.0%

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STOCK MARKET RECAP

Here are the top stories of the day. 

Festive demand boosts Maruti’s Q3

        India’s leading passenger carmaker reported a 13.2% YoY rise in net sales to ₹22,367 crore. The rise in sales could be due to the festive season push, customers’ preference for personal mobility and some early buying in December in the anticipation of a price hike in January.

  
Cost-reduction efforts and higher other income pushed up the net profits, which rose 24.1% to ₹1,941 crore. Despite the strong Q3 performance, the stock witnessed selling pressure and fell 3.4% today.

 
IDBI Bank emerges strong in Q3

        An 89% YoY decline in bad loan provisions helped the public-sector lender to record net profit of ₹378 crore in Q3. A year ago, the Mumbai-based bank reported losses of ₹5,763 crore.  

      The net interest income increased by 18% to ₹1,810 crore during the same period. The bank’s net NPA stood at 1.9% compared to 5.2% last year, suggesting an improvement in asset quality. In the upcoming Budget, the government is also likely to announce its divestment plans for IDBI Bank, Shares of IDBI closed 1.8% higher today, amid a weak market.

 

Cosmo Films surges on strong profit growth

      The packaging films maker reported a nearly 75% YoY surge in net profit to ₹63 crore, supported by better operating margins and inventory gains. Net profit rose despite a marginal 1% YoY decline in sales. 

      Investors were upbeat as the company also declared an interim dividend of ₹25 per share, which translates to a dividend yield of 5%. This is the most generous dividend declared by the company in the last 20 years. The stock rose 12.6% today.

 

Gold demand falls to record lows in 2020

          In 2020, the demand for gold in India dropped 35% YoY to a 25-year low of 446 tonnes, as per the World Gold Council. That said, an over 20% rise in gold prices helped soften the blow, value-wise. 

      The fall in demand was attributed to lockdowns and high prices. However, the scenario improved in the December quarter as the festive period and the upcoming wedding season helped revive demand. Meanwhile, gold prices have been consolidating for the last three weeks.

 

Closing bell

The Dow Jones fell over 2% yesterday as investors felt that there is over-excitement in the markets. This is especially true given the frenzied buying in certain stocks by retail traders, leading to hedge funds getting squeezed. Taking cues from the US markets, Indian markets were weak today and suffered a fifth consecutive day of decline. The tension over the farm bills is getting prolonged and amid this, net selling by foreign investors (who were largely buyers until recently) over the last few days is being seen as a negative sign. While the market does expect the upcoming budget to be pro-growth, the selling seen over the last few days gives a feeling that much of it is priced in.

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Good to know

What is a rights issue?

A rights issue is an invitation to existing investors to purchase more shares of the company. Rights issues are priced lower than stock’s current market price. Investors not wishing to subscribe to the rights issue can sell their rights through the rights entitlement trading platform on the stock exchange or via an off-market transaction.

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Disclosures and Disclaimer

 

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.

Upstox Team

Authorised Partner

Stock market recap for 27 january 2021

 

Nifty50: 13,967 ▼ 271 (-1.9%)

 Sensex: 47,409 ▼ 937 (-1.9%)

 

 

The markets opened in the red and kept sliding down all the way till the closing bell. Losses were seen in 38 of the Nifty50 stocks.

 
Among the sectoral indices, Nifty FMCG was the only sector to close in the green with gains of 0.3%. Meanwhile, the Nifty Bank (-2.9%) and Nifty Metal (-2.5%) indices were the top losers today. 

 

Top gainers	Today's change
Tech Mahindra	▲ 2.6%
SBI Life	▲ 2.3%
Wipro	▲ 2.0%

 

Top losers	Today's change
Tata Motors	▼ 4.4%
Tata Steel	▼ 4.2%
Titan	▼ 4.1%

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STOCK MARKET RECAP

Here are the top stories of the day. 

 

HUL’s Q3 profit falls short of expectations

        FMCG major Hindustan Unilever reported 20% YoY growth in Q3 sales to ₹11,682 crore and a 19% growth in net profit to ₹1,921 crore. The profit was lower than street expectation of ₹2,052 crore

The growth was driven by a 19% rise in the foods and refreshment business, which accounts for nearly 1/3rd of the total sales. The in-home consumption trend helped buck up the sales. The stock ended almost flat with 0.1% rise. 

 

Marico Q3 boosted by ‘foods’ portfolio

        The maker of ‘Parachute’ oil reported a 16.3% YoY growth in revenue to ₹2,122 crore in Q3. Net profit, too, saw an uptick of about 13% to ₹312 crore during the same period. 

The growth was supported by an 18% YoY rise in domestic business within which the ‘foods’ portfolio surged 74% by value. The company expects that overall growth trend to continue driven by rural demand and expectations of a growth-oriented budget. Today, the stock gained 0.9% in an otherwise weak market.

 

Jyothy Labs’ Q3 earnings rise on strong rural demand

       The Mumbai-based FMCG company’s consolidated revenue increased 13.2% YoY to ₹476 crore, while net profits rose 18% to ₹53 crore in Q3. 

      21% YoY growth in the dishwashing segment (Pril & Exo brands) aided revenue growth. In general, the company is witnessing strong rural demand and improving urban consumption trends. Nonetheless, the stock lost 4.1% today.

 

Excise duty hike hurts Chennai Petroleum Q3

       Oil refining company Chennai Petroleum reported a consolidated net loss of ₹556 crore for Q3 versus a profit of ₹290 crore during the same period last year. Revenue from operations was down 4% YoY to ₹11,458 crore. 

      Profits were impacted by a spike in excise duty which nearly doubled to ₹5,578 crore in Q3 versus last year. The company has not mentioned reasons for spike in excise duty. Meanwhile, its shares fell sharply and declined 19.9% coupled with heavy volumes. Indian Oil, which owns a nearly 52% stake in Chennai Petroleum, was also down 2.0% today.

 

Closing bell

 

After the decline seen in the last four trading sessions, the Nifty50 has lost all the gains registered in January so far. Today, the cues from the global equity markets were negative. Typically, a falling market could impact the IPO pipeline. Public issues face a double whammy in weak markets due to lower investor interest and lower peer valuation, which affects the issue price. The next major event for the markets is the Union Budget on Monday, and the run-up to the Budget does not look encouraging.

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Good to know

What is dividend?
Dividend refers to the portion of profits a company distributes to its shareholders on a per-share basis. Suppose that you own 10 shares of a company. If the company announces a dividend of ₹5 per share, you pocket ₹50.

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Disclosures and Disclaimer 

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.

Upstox Team

Authorised Partner