Domestic equity indices corrected on Thursday as investors booked profits after gains in past two consecutive sessions. The Nifty ended below the crucial 14,600 mark. The Sensex failed to close above the psychological 50,000 mark after scaling that level in morning trade. All the sectoral indices on the NSE ended in the red. Trading was volatile due to expiry of weekly index options on the NSE. Most global stocks advanced as investors hoped for more economic stimulus from U.S. President Joe Biden.
The S&P BSE Sensex, slipped 167.36 points or 0.34% at 49,624.76. The Nifty 50 index fell 54.35 points or 0.37% at 14,590.35. Both the indices rose about 2.5% each in the past two sessions.
The Sensex hit a record high of 50,184.01 and the Nifty hit an all-time high of 14,753.55 in afternoon trade.
Bharti Airtel (down 2.56%), HDFC Bank (down 1.14%), HDFC (down 0.97%) and TCS (down 1.01%) dragged the indices.
In the broader market, the BSE Mid-Cap index fell 0.88% and the BSE Small-Cap index slipped 0.68%.
Sellers outnumbered buyers. On the BSE, 1,108 shares rose and 1,912 shares fell. A total of 168 shares were unchanged.
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COVID-19:
Total COVID-19 confirmed cases worldwide stood at 9,68,68,849 with 20,74,886 deaths. India reported 1,92,308 active cases of COVID-19 infection and 1,52,869 deaths while 1,02,65,706 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 5.957% as compared with 5.942% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.9950, compared with its close of 73.05 during the previous trading session.
In the commodities market, Brent crude for March 2021 settlement fell 47 cents at $55.61 a barrel. The contract rose 18 cents, or 0.32% to settle at $56.08 a barrel in the previous trading session.
Foreign Markets:
Most European shares advanced on Thursday as President Joe Biden takes office. "The United States is back. And Europe stands ready," European Commission President Ursula von der Leyen tweeted, while British Prime Minister Boris Johnson said in parliament on Wednesday that he looked forward to "strengthening the partnership between our countries."
Most Asian shares rose on Thursday after stocks on Wall Street sailed to record highs as U.S. President Joe Biden was sworn into office.
In US, the stock market rallied to a record close as President Joe Biden was sworn into office, sparking hopes for another stimulus package and smoother vaccine rollout ahead.
The Dow Jones Industrial Average jumped 257.86 points, or 0.8%, to a new closing high of 31,188.38. The S&P 500 advanced 1.4% to a record close of 3,851.85, led by the communication services sector. The tech-heavy Nasdaq Composite jumped nearly 2% to 13,457.25, notching a fresh record. All three averages also touched their intraday highs during the session.
Netflix soared after the company reported strong subscriber growth and said it's considering share buybacks. The company also said it expects to break even on a cash flow basis this year.
Biden was inaugurated to succeed President Donald Trump as the 46th president of the United States. Janet Yellen, Biden's designated nominee for Treasury Secretary, on Tuesday endorsed higher aid spending and urged lawmakers to "act big."
Earnings Impact:
Asian Paints rose 0.62% after the company's consolidated net profit increased by 62% to Rs 1,238.34 crore on a 25.2% rise in revenue from operations to Rs Rs 6,788.47 crore in Q3 FY21 over Q3 FY20. On the segmental front, revenue from paints business was Rs 6,635.08 crore (up 25.3% YoY) while the revenue from home improvement business was Rs 153.39 crore (up 21.6% YoY) in the third quarter. Profit before depreciation, interest, tax and other income (PBDIT) for the group increased by 50.3% to Rs 1,787.89 crore in Q3 December 2020 from Rs 1,189.39 crore in Q3 December 2019.
Bajaj Auto advanced 2.71% after consolidated net profit jumped 29.77% to Rs 1,716.26 crore on a 16.62% surge in total revenue from operations to Rs 8,909.88 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) soared 26.59% to Rs 2,192.76 crore in Q3 December 2020 as against Rs 1,732.12 crore in Q3 December 2019.
Bandhan Bank fell 5.22%. The bank reported a 13.4% fall in net profit to Rs 632.59 crore on a 25.5% rise in total income to Rs 3861.12 crore in Q3 December 2020 over Q3 December 2019.
The bank's provisions and contingencies spiked by 262% to Rs 1068.73 crore in Q3 December 2020 from Rs 294.87 crore in the same period last year. During the quarter the bank has taken accelerated additional provision on standard advances amounting to Rs 1,000 crore. With this provision and additional standard assets provision that bank is carrying in micro banking portfolio total additional provision in books stands at Rs 3,119 crore.
Jindal Steel & Power (JSPL) fell 1.26%. The company's consolidated net profit stood at Rs 2,566.68 crore in Q3 December 2020 compared with net loss of Rs 218.57 crore in Q3 December 2019. Net sales jumped 39.95% to Rs 10,533.51 crore in Q3 FY21 as against Rs 7,526.24 crore in Q3 FY20. JSPL reported pre-tax profit of Rs 2,848.03 crore in Q3 December 2020 as against pre-tax loss of Rs 241.09 crore in Q3 December 2019. Consolidated EBITDA grew 170.13% to Rs 4,252 crore in Q3 FY20 over Rs 1,574 crore in Q3 FY19. The Q3 result was declared during market hours today, 21 January 2021.
L&T Technology Services (LTTS) fell 5.06%. The company reported 12.4% rise in consolidated net profit to Rs 186.10 crore on a 6.6% rise in revenue to Rs 1400.70 crore in Q3 FY21 over Q2 FY21. However, as compared to Q3 FY20, the company's net profit and revenue have declined by 8.8% and 1.6%, respectively.In dollar terms, revenue stood at $190.1 million for the quarter; up 6.8% quarter-on-quarter (QoQ) and down 4.6% year-on-year (YoY). In constant currency, revenue was up 6.6% QoQ and down 5.2% YoY. EBIT jumped 18.4% in the third quarter 213.2 crore from Rs 180.1 crore in the second quarter. EBIT margin was at 15.2% as on 31 December 2020 as against 13.7% as on 30 September 2020.
AAVAS Financiers rose 0.18% after the company's consolidated net profit rose 25.8% to Rs 85.46 crore on a 29.5% increase in total income to Rs 310.07 crore in Q3 FY21 over Q3 FY20. Profit before tax in Q3 December 2020 stood at Rs 110.29 crore, up by 37.1% from Rs 80.43 crore in Q3 December 2019. Impairment charge in financial instruments surged to Rs 16.16 crore in the third quarter from Rs 1.34 crore in the same period last year. The company said that the COV1D-19 pandemic had led to a significant volatility in global and Indian financial markets and a significant decrease in global & local economic activities, which may persist.
Havells India surged 11.02%. On a standalone basis, the company's net profit jumped 75% to Rs 349.13 crore on a 39.5% increase in net sales to Rs 3,165.85 crore in Q3 FY21 over Q3 FY20. EBIDTA jumped 89% to Rs 508 crore in Q3 December 2020 from Rs 269 crore in Q3 December 2019. EBIDTA margin was at 16% as 31 December 2020 as against 11.8% as 31 December 2019. The company said it saw an encouraging business performance with secular growth across divisions and regions led by improvement in consumer sentiment, festive season and reduction in Covid-19 cases; and increased penetration in smaller towns and a higher rural reach. Supply chain disruption faced by suppliers with high import dependence have further supported market share gains.
GMM Pfaudler tumbled 5.23%. The company reported 9.8% jump in consolidated net profit to Rs 23.11 crore on 29.4% rise in net sales to Rs 201.81 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) soared 18.2% to Rs 31.96 crore in Q3 December 2020 as against Rs 27.05 crore in Q3 December 2019.Consolidated EBITDA grew 38% to Rs 41.9 crore in Q3 December 2020 from Rs 30.4 crore in Q3 December 2019. EBITDA margin improved to 21% in Q3 FY21 from 20% in Q3 FY20.
Stocks in Spotlight:
National Aluminium Company (NALCO) jumped 4.72% after the aluminium maker said its board will consider share buyback on 27 January 2021.
Axis Bank gained 0.08% while shares of Max Financial Services fell 0.5%. Competition Commission of India (CCI) on Wednesday (20 January 2021) said it has approved the stake acquisition in Max Life Insurance Company (Max Life) by Axis Bank, Axis Capital and Axis Securities. As per the combination notice filed with CCI, the shareholding of Axis Bank in Max Life will increase to approximately 9.9%. In April 2020, Axis Bank and Max Financial Services (MFS) announced the signing definitive agreements to become joint venture partners in Max Life. The bank would hold 30% stake in Max Life post transaction closure. In August 2020, Axis Bank announced tweaks insurance joint venture pact with MAX Life. As per the revised deal, Axis Bank would acquire 17.002% of the equity share capital of Max Life, resulting in total ownership of 18% post the transaction.
Shares of Reliance Industries (RIL) gained 2.09%. The Securities and Exchange Board of India (Sebi) on Wednesday gave a go-ahead to RIL's Rs 24,713-crore deal to buy Future Group's retail assets.
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