Weekly: Sensex, Nifty tumbles for 2nd consecutive week
There was no respite from the ongoing downtrend. Indices have lost further ground closing lower than 2% this week after plunging nearly 5% in the previous week; both the key indices hit their respective 52-week lows during the week amid weak global cues and weakening Indian currency against the US Dollar. The rupee weakened and a hit 28-month low of Rs67.69 against the US Dollar.
The result season has begun and nothing really in it so far inspires confidence as far as corporate earnings are concerned barring Infosys, which delivered better-than-expected results. Infosys delivered growth of 2% qoq in constant currency terms adjusting for one time revenue in the preceding quarter. Volume growth was strong at 3% qoq despite challenges in regards to some top clients. Buoyed by a good performance in Q3, the company has raised full year dollar growth guidance to ~13% yoy in constant currency terms.
The slow economic recovery and poor show reported by Corporate India, quarter‐after‐quarter will remain a concern. In the coming week, a number of larger companies are likely to announce their results. These include RIL, HCL Tech, Axis Bank, and Asian Paints. We expect RIL to report a GRM of US$11/bbl compared with US$7.3/bbl reported in Q3 FY15 and US$10.6/bbl in Q2 FY16. Petrochemical prices too have seen a correction in line with crude oil prices, but we expect the spreads to remain flattish. While it may be difficult to predict the timing in regards to when the broad earnings pick-up will happen, it can be said that many companies outside the Nifty have started staging a recovery. It would be prudent for investors to identify these stocks and sectors rather than wait for a full‐fledged recovery to kick in.
For the week, BSE Sensex closed at 24,455 (down 1.9%) and NSE Nifty at 7,438 (down 2.2%)
Sensex Top Gainers: The top gainers in Sensex were Infosys (up 7.3%), Reliance Industries (up 4.8%), Maruti Suzuki India (up 1.4%), Asian Paints (up 0.5%), ITC (up 0.1%)
Sensex Top Losers: The top losers in Sensex were State Bank of India(down 11.6%), Bharat Heavy Electricals (down 11.2%), GAIL India (down 9.9%), Axis Bank (down 9.7%), Adani Ports & Special Economic(down 9.7%).
Nifty Top Gainers: The top gainers in Nifty were Infosys (up 7.2%), Reliance Industries (up 4.6%), Bharat Petroleum Corp (up 3.2%), Maruti Suzuki India (up 1.4%), HCL Technologies (up 1.2%)
Nifty Top Losers: The top losers in Nifty were Idea Cellular (down 15.3%), Punjab National Bank(down 12.3%), State Bank of India(down 11.8%), Bharat Heavy Electricals (down 11.2%), Bank of Baroda(down 10.2%)
BSE Mid Cap Top Gainers: The top gainers in Mid Cap Index were Emami (up 1.4%), Berger Paints India (up 1.1%)
BSE Mid Cap Top Losers: The top losers in Mid Cap Index were Jindal Steel & Power (down 24.2%), IDBI Bank (down 21.9%), Jaiprakash Associates (down 19.3%), Wockhardt (down 18.6%), Allahabad Bank(down 18.5%)
BSE Bank Index Top Losers: The top losers in Bank Index were Punjab National Bank(down 12.4%), State Bank of India(down 11.6%), Bank of Baroda(down 10.3%), Axis Bank (down 9.7%), Federal Bank (down 9%)
BSE Healthcare Index Top Losers: The top losers in Healthcare Index were Marksans Pharma (down 35.5%), Sequent Scientific (down 24.7%), Morepen Laboratories (down 24.5%), Granules India (down 21.5%), Nectar Lifesciences (down 21.3%)
BSE Auto Top Gainers: The top gainers in Auto Index were Maruti Suzuki India (up 1.4%)
BSE Auto Index Top Losers: The top losers in Auto Index were Motherson Sumi Systems (down 7.4%), Apollo Tyres (down 6.9%), Ashok Leyland (down 6.4%), Eicher Motors (down 5.4%), Bharat Forge (down 4.8%)
BSE Oil & Gas Top Gainers: The top gainers in Oil & Gas Index were Reliance Industries (up 4.8%), Bharat Petroleum Corp (up 3.3%)
BSE Oil & Gas Index Top Losers: The top losers in Oil & Gas Index were GAIL India (down 9.9%), Oil India (down 9.7%), Cairn India (down 7.6%), Indian Oil Corp (down 4.5%), Petronet LNG (down 4.5%)
BSE Metals Index Top Losers: The top losers in Metals Index were Jindal Steel & Power (down 24.2%), Steel Authority of India (down 10.6%), Vedanta (down 10.1%), Tata Steel (down 9.4%), Hindalco Industries (down 6.5%)
BSE IT Index Top Gainers: The top gainers in IT Index were Mindtree (up 9.1%), Infosys (up 7.3%), HCL Technologies (up 1.2%), Polaris Consulting & Services(up 0.1%)
BSE IT Index Top Losers: The top losers in IT Index were Zen Technologies (down 23.6%), Mastek (down 22.6%), SQS India BFSI (down 22%), Tanla Solutions (down 21.9%), AurionPro Solutions (down 19.6%)
Stock News
TCS reported a 14.2% jump in profit to Rs. 6,083 crore for the third quarter of the current fiscal. Its revenues were up 11.7 per cent to Rs. 27,364 crore in the third quarter of 2015-16, from Rs. 24,501 crore in the corresponding period of 2014-15.
Mastek reported its financial results for Q3 FY16 registering a drop in profit by 70% to Rs.0.8 crore vs Rs. 2.7 crore q-o-q.The total income of the company stood at Rs.140.7 crore vs Rs.137 crore q-o-q.
Idea Cellular launched its high speed 4G LTE services across four more states in India (three Telecom Circles) – Chhattisgarh, Haryana, Madhya Pradesh and Punjab.
Saab has sold its 3.3% stake in Pipavav Defence & Offshore Engineering Co. Ltd. to Reliance Defence Systems, which had made a tender offer for outstanding shares in Pipavav.
M&M reportedly found a way to circumvent the Supreme Court order suspending registration of diesel vehicles with engines bigger than 2.0 litres.
Federal Bank sold its loans given to Essar Steel worth INR 70 crore to Edelweiss Asset Reconstruction Company (ARC), according to reports.
Petronet LNG aims to add INR 25,000 crore to its topline in the next three years by selling cheaper gas to consumers currently using liquid fuels such as naptha and fuel oil.
Cyient reported a consolidated net profit of Rs.86.8 crore while the consolidated total income stood at Rs.781.8 crore vs Rs.771.6 crore q-o-q. The company reported consolidated EBITDA At Rs.109.7 Crore, while clocking consolidated EBITDA Margin at 14.03% vs 15.2% q-o-q.
Talwalkars entered into a Memorandum of Understanding (MOU) with Zorba – A Renaissance Studio (Zorba) a chain of yoga studios having operations in Chennai.
Texmaco Rail & Engineering has bought 55% stake in Bright Power Projects (India) for an undisclosed amount.
HDIL plans to sell transfer of development rights (TDR) worth 2 million sq. ft. for ~Rs. 1,000 crore this year on the back of a revival in the TDR market.
JB Chemicals announced that the National Green Tribunal (West Zone) has urged the Government to revoke the environmental clearance given to its bulk drug plant located at the GIDC Panoli.
IOC to invest nearly Rs. 13,000 crore to upgrade its refineries and produce BS VI grade automotive fuels from April 1, 2020.
Power Grid approved a cumulative investment of Rs 2,510 crore for various transmission projects, including Rs 1,455.47 crore for strengthening its network in the Southern region. The company’s Board of Directors accorded approval for investment in seven transmission project proposals in their meeting held on January 12.
Karur Vysya Bank reported a 34.20 per cent jump in net profit at Rs 152.83 crore for third quarter ended December 31, on account of lower provisions for bad loans.
Orange and Bharti Airtel International have signed an agreement leading to Orange’s acquisition of Airtel’s operations in Burkina Faso and Sierra Leone. Orange will acquire 100% of the two companies’ share capital.
Suzlon Group announced its foray into the solar sector with 210MW Letters of Intent (LOIs) from the State utility, Southern Power Distribution Company of Telangana Limited (TSSPDCL).
Tata Motors announced that a meeting of the board of directors is scheduled to be held on January 18, 2016 to consider and approve Buy-back of the following two tranches :i. Unsecured Non-Convertible Debentures aggregating 200 crores due to mature on November 30, 2018.ii. Unsecured Non-Convertible Debentures aggregating 250 crores due to mature on May 28 , 2019,as part of its Debt restructuring programme to ensure balanced maturity profile and / or better terms that would include lower cost of debt .
[Source:- IIFL]