Sensex ends 549 pts down at 49,035; HCL Tech declines 4%; Tata Motors up 7%

Stock market updates: India VIX ticked up 5 per cent

9:02 AM

HCL Tech reports Q3 net profit at Rs 3,982 crore

-- Revenue in Rupee terms for the quarter at Rs 19,302 crore

-- Revenue in dollar terms at $2617 mn

 

-- Company raises constant currency growth guidance to 2-3 per cent

-- Announces interim dividend of Rs 4 per share

-- Company revises EBIT guidance  to 21-22% for FY21, sees Q4 EBIT margin likely between 21-21.5%

8:53 AM

BROKERAGE VIEW :: Antique Broking on Metals

China's manufacturing PMI in December'20 was broadly unchanged at a level of 51.9 as compared to 52.1 posted in November'20 indicating stable factory activity. Weak dollar index, abundant global liquidity and lower LME inventories continue to support the sentiment towards metal prices despite expectations of a surplus for most non-ferrous metals.

The dollar index has declined by 3.3% over the past three months and 7.2% over the past twelve months respectively. While LME spot copper prices improved 3% MoM, aluminium, zinc and lead prices were broadly unchanged. Indian silver prices have increased 5% over the past month which is positive for Hindustan Zinc. Alumina prices were higher 4% MoM and have moved up 14% over the past three months. The global refined zinc metal market is expected to remain in surplus in CY20 and CY21 after being in deficit from CY16 to CY19 as per the ILZSG (International Lead and Zinc Study Group).

We maintain our BUY on Hindalco (TP of INR 282) and Nalco (target price of INR 55) with firm aluminium and alumina prices. Post the sharp run-up in Hindustan Zinc; we will review our rating on the stock post the results next week (current TP of INR 266).

8:50 AM

HCL Tech to report Q3 results roday here's what top brokerages expect

Most analysts see a 5-6 per cent year-on-year (YoY) rise in Q3 revenue, led by broad-based growth across verticals and geographies, and easing of stress in the ER&D segment. Sequentially, the revenue may rise between 2 per cent and 3.5 per cent. The revenue could increase by 3 per cent quarter-on-quarter (QoQ) in constant currency (cc) terms and 2.5-4 per cent QoQ in dollar terms, believe analysts. READ MORE

8:46 AM

BROKERAGE VIEW :: MOFSL on Healthcare

The aggregate sales growth for companies under our coverage is expected to be steady at 11% YoY for 3QFY21. Factors such as a) a favorable product mix and b) an increase in operational cost at a slower rate v/s sales growth are expected to keep profitability at elevated levels, driving much higher YoY growth of 29%/41% YoY in EBITDA/PAT for the quarter. On a sequential basis, we expect sales/EBITDA/PAT to moderate to INR538b/INR129b/INR77b on a) one-time COVID specific opportunities in 2QFY21 and b) reduced export incentive benefits. Also, operational cost, particularly related to the Domestic Formulation segment is expected to be higher for 3Q v/s 2QFY21, impacting the overall profitability of pharma companies sequentially.

We raise our EPS estimates for DIVI by 2% for FY21/FY22, rolling forward our Target Price to INR4,450. We raise our EPS estimate for SUNP by 2% for FY21/FY22 and revised the PE multiple to 25x (from 24x earlier), factoring in better traction in the Specialty portfolio and an improving outlook for the Branded Generics segment.

Accordingly, we revise our Target Price to INR700 on a 12M forward earnings basis. We further tweak our estimates for CDH and raise the PE multiple to 22x (from 20x earlier), factoring in improved sales growth in the DF segment and good progress on the COVID vaccine development. Accordingly, we revise our Target Price to INR565 on a 12M forward earnings basis. 

8:45 AM

BROKERAGE VIEW :: MOFSL on Housing Finance

>> After 5 years of stagnant Residential Real Estate (RE) sales, the RE and the Housing Finance sectors have bottomed out. Affordability is the best in the past two decades, with flattish RE prices over FY15-20 and price cuts triggered by the COVID-19 pandemic. In addition, current interest rates (starting at sub-7% for prime customers) are at an all-time low and ~300bp lower than those five years ago. Economic indicators point to an upward trend and the resolve of the government and regulator to solve issues affecting the sector is also encouraging.

>> As credit costs normalize in FY22, we expect HFCs under our coverage to generate 12-17% RoE in FY22-23E. Similar to the RE space, we expect further consolidation in the HFC sector to play out, with the top two players gaining market share. While valuations have re-rated in the past 2-3 months, the risk-reward is favorable in our view. HDFC remains a preferred pick in the sector. We are initiating coverage on AAVAS/CANF with a Neutral/Buy rating. We maintain our Neutral stance on PNB Housing Finance (PNBHF) due to capitalization challenges

8:41 AM

Top stocks to watch today

Q3 earnings: HCL Technologies, L&T Finance Holdings, PVR, Shoppers Stop, Aditya Birla Money, Gautam Gems, Hathway Cable & Datacom, Bhakti Gems and Jewellery, Indo Asian Finance, Mardia Samyoung Capillary Tubes, Next Mediaworks, Onward Technologies, Plastiblends India, Soril Infra Resources, Yaarii Digital Integrated Services and Ardi Investment will announce their December qaurter earnings on January 15.

Bhart Airtel: MSCI on Thursday said it would decide on increasing the weight of Bharti Airtel during its upcoming index review in February. READ MORE

8:38 AM

Here is a derivative strategy for Cadila Health

BUY CADILA HEALTH JAN 510 CALL @ Rs 20

Lot Size: 2200

Stop loss of Rs 15

 

Target Rs 30

 

Rationale:

 

The stock price has broken out from the consolidation which held for last three weeks READ MORE

8:36 AM

Two stocks that Gaurav Garg is bullish on

Buy SBI Cards and Payment Services Limited (Above Rs 980)

Target: Rs 1,025

Stop loss: Rs 955

 

The stock is forming a 'bullish flag' pattern on daily charts, and breaking its resistance. This might push the stock to its 52-week highs of 1,002.05. The stock might also show further strength if it moves above 980. It is also sustaining above its important moving averages. We recommend buying the stock above 980 for the target of Rs 1,025, keeping a stop loss at Rs 955 on closing basis. READ MORE

8:33 AM

Trading recommendations by Nilesh Jain of Anand Rathi

BUY HINDPETRO | TARGET: Rs 255 | STOP LOSS: Rs 222

 

The stock is on the verge of a breakout an 'inverse head and shoulder' pattern on the daily chart. The neckline is placed at 236 levels; above that we can expect a fresh leg on the upside towards 255 levels. The momentum indicators and oscillators have also provided a buy crossover on the daily chart. The stock also witnessed a built-up of long positions with the addition of 10 per cent open interest. READ MORE

8:30 AM

Bulk deals on the BSE as on Thursday

Click here for complete list

8:25 AM

Bulk deals on the NSE as on Thursday

Click here for complete list

8:23 AM

FII/FPI & DII trading activity on NSE, BSE and MSEI

8:21 AM

Rupee check

Source: Bloomberg

8:19 AM

Oil mixed as Chinese lockdowns raise demand questions

Oil prices were mixed on Friday as strong import data from China, the world’s biggest crude importer, that boosted sentiment earlier ran into concerns about Chinese cities in lockdown due to coronavirus outbreaks.

 

Brent was down 3 cents at $56.69, after gaining 0.6% on Thursday. U.S. West Texas Intermediate crude was up 12 cents at $53.69 a barrel, having risen more than 1% the previous session.

(Source: Reuters)

8:14 AM

SGX Nifty Update

>> At 8:13 am, the index was at 14,569.5 levels, down 53.5 points.