SSPL WEALTH PVT LTD

End - Session

Detailed review of the post market session of the day.

Sensex tumbles 470 pts on broader selloff; Nifty ends below 14,300

18-Jan-21 17:16 Hrs IST

Benchmark indices ended with steep losses on Monday, extending fall for the second straight session. All the sectoral indices on NSE ended in red. Metal shares corrected sharply. Rising coronavirus cases across US, Europe and China weighed on investors' sentiment.

The barometer index, the S&P BSE Sensex, dropped 470.40 points or 0.96% to 48,564.27. The Nifty 50 index lost 152.40 points or 1.06% at 14,281.30.

Reliance Industries (up 2.37%), HDFC Bank (up 1.15%) and ITC (up 0.76%) supported the indices. Axis Bank (down 2.79%), Infosys (down 2.49%), HDFC (down 2.49%) and ICICI Bank (down 1.94%) dragged.

In the broader market, the BSE Mid-Cap index fell 2.01% and the BSE Small-Cap index lost 1.89%. Both the indices underperformed the benchmark indices.

Sellers outpaced buyers. On the BSE, 938 shares rose and 2090 shares fell. A total of 144 shares were unchanged.

COVID-19:

Total COVID-19 confirmed cases worldwide stood at 9,50,45,802 with 20,30,842 deaths. India reported 2,08,012 active cases of COVID-19 infection and 1,52,419 deaths while 1,02,11,342 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

Excise duty mop-up jumped 48% in the current fiscal on the back of a record increase in taxes on petrol and diesel, that more than made up for the below normal fuel sales. Excise duty collection during April-November 2020, was at Rs 1,96,342 crore, up from Rs 1,32,899 crore mop-up during the same period in 2019, according to data from the Controller General of Accounts (CGA).

Meanwhile, bank credit grew 3.2% to Rs 107.05 lakh crore in the first nine months of the current financial year, against a growth of 2.7% posted in the corresponding period of 2019-20. In the fortnight ended March 27, 2020, bank advances stood at Rs 103.72 lakh crore. Bank deposits rose 8.5 per cent to Rs 147.27 lakh crore in the April-December 2020 period as against an increase of 5.1 per cent a year ago, according to the recent data released by the Reserve Bank of India.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 5.958% as compared with 5.988% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.28, compared with its close of 73.07 during the previous trading session.

In the commodities market, Brent crude for March 2021 settlement fell 3 cents at $55.07 a barrel. The contract fell $1.32, or 2.34% to settle at $55.10 a barrel in the previous trading session.

Foreign Markets:

European stocks were mixed on Monday. The COVID-19 pandemic and rollout of vaccinations continues to dominate headlines. The Netherlands saw several thousand people protest against lockdown measures on Sunday before they were dispersed by riot police.

Meanwhile, the U.K. continues to lead the pace when it comes to the rollout of vaccinations; on Monday, it is broadening out its program to offer a first dose of the vaccine to anyone aged 70 and over, and those who are considered clinically extremely vulnerable.

Asian stocks ended on a mixed note on Monday as investors in the region reacted to Chinese economic data releases, including the country's GDP print for the fourth quarter.

China reported GDP rose 2.3% last year as the world struggled to contain the coronavirus pandemic. Gross domestic product grew by 6.5% in the fourth quarter from a year ago, official data from National Bureau of Statistics showed. However, Chinese consumers remained reluctant to spend, as retail sales contracted 3.9% for the year. Retail sales for the fourth quarter rose 4.6% from a year ago.

Markets in the U.S. are closed on Monday for a holiday. US stocks fell on Friday as traders weighed President-elect Joe Biden's $1.9 trillion stimulus plan along with the latest earnings from some of the biggest U.S. banks. The Dow Jones Industrial Average closed 177.26 points, or 0.6% lower, at 30,814.26. The S&P 500 dipped 0.7% to 3,768.25, and the Nasdaq Composite slid 0.9% to end the day at 12,998.50.

Buzzing Domestic Segment:

The Nifty Metal index fell 4.08% to 3,308.50. The index has fallen 6.10% in three sessions.

SAIL (down 6.06%), JSPL (down 6%), Hindustan Copper (down 5.97%), Welspun Corp (down 5.84%), Tata Steel (down 5.79%), NMDC (down 5.05%), NALCO (down 4.85%), Hindalco Industries (down 4.28%), JSW Steel (down 4.25%), MOIL (down 3.83%), Hindustan Zinc (down 2.26%), APL Apollo Tubes (down 1.96%) and Mishra Dhatu Nigam (down 1.24%) slumped.

Earning Impact:

HDFC Bank gained 1.15% after the bank reported 18.1% rise in net profit to Rs 8,758.29 crore on 4.1% increase in total income to Rs 37,522.92 crore in Q3 FY21 over Q3 FY20. Net interest income for the quarter ended 31 December 2020 grew by 15.1% to 16,317.6 crore from 14,172.9 crore for the quarter ended 31 December 2019, driven by advances growth of 15.6%, and a core net interest margin for the quarter of 4.2%. The bank's focus on deposits helped in maintaining a healthy liquidity coverage ratio at 146%, well above the regulatory requirement.

On the asset quality side, gross non-performing assets (NPAs) stood at Rs 8,825.56 crore as on 31 December 2020 as against Rs 11,304.60 crore as on 30 September 2020 and Rs 13,427.25 crore as on 31 December 2019. The bank's provisions and contingencies rose by 12.2% to Rs 3,414.13 crore in Q3 FY21 over Q3 FY20. The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 8,656 crore as on 31 December 2020.

Pre-provision Operating Profit (PPOP) improved by 17.3% Rs 15,186.02 crore in the third quarter as compared to the corresponding quarter of the previous year. The total credit cost ratio was at 1.25% in the quarter ending 31 December 2020 as compared to 1.41% in the quarter ending 30 September 2020 and 1.29% in the quarter ending 31 December 2019.

L&T Finance Holdings skid 5.33% after the company's consolidated net profit fell 51.4% to Rs 287.75 crore on 3% decline in total income to Rs 3,622 crore in Q3 December 2020 over Q3 December 2019. As a prudent measure, the company continues to carry an additional provision of Rs 1,739 crore in Q3 December 2020. This is on account of macro prudential provisions, COVID-19 and accelerated Expected Credit Losses (ECL) provisions on Stage 1 & 2 assets, which are over and above the ECL model on GS3 and Stage 1 & 2 assets.

Rallis India fell 0.70%. The agrochemical manufacturer's net profit rose 19.95% to Rs 45.64 crore on a 6.91% increase in net revenue from operations to Rs 570.47 crore in Q3 FY21 over Q3 FY20. The company earned an exceptional income of Rs 6.12 crore during the quarter comprising profits on sale of flats. Profit before tax in Q3 December 2020 stood at Rs 62.05 crore, up by 28.47% as against Rs 48.30 crore in Q3 December 2019. Tax expense during the third quarter increased by 58.70% year-on-year (YoY) to Rs 16.41 crore.

Trident rose 1.43% after consolidated net profit soared 200.42% to Rs 112.15 crore on 20.39% increase in revenue from operations to Rs 1,303.15 crore in Q3 December 2020 over Q3 December 2019.

Shakti Pumps (India) hit an upper circuit of 5% at Rs 376.95 after the company reported a consolidated net profit of Rs 26.53 crore in Q3 FY21 compared with net loss of Rs 8.69 crore in Q3 FY20. Revenue from operations surged 3.39 times to Rs 316.65 crore in the third quarter from Rs 93.28 crore in the same period last year.

Chembond Chemicals hit an upper circuit of 20% at Rs 210.95 after the company reported a 247.62% surge in consolidated net profit to Rs 8.45 crore in Q3 FY21 from Rs 2.43 crore in Q3 FY20. Net sales during the quarter increased by 12.51% year-on-year (YoY) to Rs 75.19 crore. Other income surged 95.66% to Rs 6.05 crore in Q3 December 2020 from Rs 3.09 crore in Q3 December 2019.

Stocks in Spotlight:

Dewan Housing Finance Corporation (DHFL) hit an upper circuit of 5% at Rs 27.50. In a regulatory filing made on Sunday (17 January 2021), the mortgage lender said that the e-voting on resolutions pursuant to the 18th meeting of the Committee of Creditors of the company (CoC) concluded on 15 January 2021 and the resolution plan submitted by Piramal Capital and Housing Finance was duly approved by CoC by majority voting, as the successful resolution plan. As per reports, Piramal's bid received 94% votes as compared to 45% for the US-based Oaktree Capital.

Mastek slumped 11.10% after the company said John Owen will relinquish his role as Group CEO on 18 January 2021. Ashank Desai, vice chairman & managing director, will assume the responsibilities of the group chief executive officer until a new group chief executive officer is appointed.

Caplin Point Laboratories fell 0.95%. Caplin Point Laboratories announced that its subsidiary, Caplin Steriles, has entered into a strategic partnership with JAMP Pharma Group for six injectable products to be filed shortly in Canada.

GE T&D India advanced 1.80% after the company agreed to sell its Global Engineering Operations Division to GE India Industrial for a cash consideration of Rs 87.30 crore.