Share Market Highlights: Sensex ends 400 points lower, Nifty at 15,208; Nestle, Bajaj twins top losers

Sensex, Nifty Updates on February 17: Tracking losses in index majors, share market indices ended on a bearish note on Wednesday, amid mixed global equities. Falling for the second straight session, BSE 30-share Sensex ended 400 points lower at 51,703 and NSE Nifty 50 fell by 104 points at 15,208. Nestle India, ONGC, HDFC, TCS, PowerGrid and ICICI Bank were among the top losers today. On the other hand, Bajaj Auto, SBI, Bajaj Finance and Reliance Industries were among the gainers. Sectorally, except for media and PSU Bank index that were in demand, all the other sectors witnessed selling, with IT, private banking and pharma shares decling overe 1% each. Yesterday, Sensex ended 49 points lower at 52,104 and Nifty fell 1.25 points to 15,313. On Tuesday, Sensex hit a record high of 52,516 and Nifty hit a lifetime high of 15,431.

Here's a look at the updates of the market action on BSE and NSE today

3. 55 PM: Closing session on Wednesday

Tracking losses in index majors, share market indices ended on a bearish note on Wednesday, amid mixed global equities. Falling for the second straight session, BSE 30-share Sensex ended 400 points lower at 51,703 and NSE Nifty 50 fell by 104 points at 15,208.

3. 43PM: Nifty Tech View

Rohit Singre, Senior Technical Analyst at LKP Securities said,"Index opened a day with a gap down & managed to hold its bearish steam throughout the day and closed a day at 15210 with loss of nearly one per cent with forming a bearish candle for the second consecutive day. The index closed a day below its strong support of 15250 which hints now 15250 will the immediate hurdle on the higher side and we may see good move once index decisively move above 15250 odd levels, immediate support is now placed at 15140-15090 zone and resistance is coming near 15300-15380 zone"

3. 35PM: Market outlook

S Ranganathan, Head of Research at LKP Securities said,"While Indices corrected today on the back of profit-taking in Blue Chips, the action shifted to Mid & Small Caps as several stocks across sectors were seen buzzing around on the back of news flow and investor appetite"

3. 24 PM: Nifty Tech View

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited said,"The market failed to show resilience to stay above the Nifty 50 Index level of 15250 on a sustained basis. While it is subject to further price action evolution, the technical factors are shifted today to support a sideways correction in the future. The corrective wave down should find support around 15100-15150. As such, the traders are advise to refrain from building a new buying position until we witness a breakout of 15370."

3. 15 PM: Amara Raja Batteries outlook

Edelweiss said in its note today," Amara Raja Batteries i) The 2W OE market share has expanded strongly to ~25%. ii) While pack assembly is underway, management is evaluating cell-making and will announce any developments thereof in FY22. iii) Lead-acid battery demand in India will grow at a high single-digit for the foreseeable future.

While new capex for solar and lead recycling (INR5bn) may accrue benefits over longer term, AMRJ has lower margin levers presently at its disposal, and sales have softened slightly owing to capacity constraints. Retain 'HOLD' with a TP of INR952 (23x Q1FY23E EPS)."

3. 05PM: Lodha Developers files DRHP for Rs 2,500 cr IPO

Mumbai-based realtor Macrotech Developers Ltd, or Lodha Developers, has filed a draft papers with the capital market regulator, Securities and Exchange Board of India (SEBI), so as to raise Rs 2,500 crore via an initial public offering (IPO).

As per the Draft red herring prospectus (DRHP) filed late Tuesday, net proceeds amounting Rs 1,500 crore are proposed to be used towards prepayment, repayment, or redemption of all or a portion of certain borrowings of the company and its subsidiaries.

The company also intends to utilise Rs 375 crore from the issue proceeds to acquire land or land development rights, primarily in the Mumbai metropolitan region and Pune.

2. 49 PM:Sobha Q3 outlook

Edelweiss said in its note today," Sobha delivered its best-ever pre-sales at ~1.1msf in Q3FY21 (up 6% YoY, 27% QoQ); its share of new sales at INR6.8bn improved 12% YoY and 28% QoQ despite just ~0.15msf new launches in 9MFY21. Net debt edged down to ~INR29.8bn (INR30.5bn in Q2FY21). Management indicated that demand is robust across segments and geographies, and that it will focus on growth along with cash flow management. We expect buoyancy in sales to sustain on the back of revival in housing demand (refer to Hot Property - Rising like a phoenix) and a robust ~15msf launch pipeline. We continue to follow the old AS; maintain BUY and our SoTP-based target price of INR555."

2. 37 PM: YES Bank share falls for fourth straight session

YES Bank share continued 2% lower in Wednesday's session on BSE, in line with broader private banking index, down 1% and 30-share S&P barometer, BSE Sensex falling 0.7%.

The stock of the private lender opened at Rs 16 against its previous close of Rs 16.05, also the day's high. Later, the stock erased gains and traded 1.8% lower at an intraday low of Rs 15.75. The stock has declined 3.33% in four sessions.

YES Bank stock trades higher than 100-day moving averages but lower than 5, 20, 50 and 200-day moving averages.

The share has fallen 3% in one week, 9% in a month. Year-to-date, the stock is down 10%.

YES Bank share falls for fourth straight session

2. 13 PM: Welspun India (WLSI) outlook

Edelweiss said in its note today," Welspun India (WLSI) i) The company is covered on cotton till April. ii) For technical textiles, target is to reach INR6bn revenue by FY23. iii) Flooring: The company has already spent INR10bn. Targeting USD100mn plus in revenue in 2-3 years via licensed brands. WLSI expects debt to remain below INR24bn. Targeting to keep margin around 19-20% with revenue of INR73bn for FY21. We maintain our target multiple at 7.0x June 2022E EV/EBITDA with TP of INR85. We maintain 'BUY'. At CMP, the stock is trading at 5.9x FY22E EV/EBITDA. Though order book remains strong, sustenance of demand will be key for further rerating."

2.03 PM: Bata India Q3FY21 Results update

Geojit Financial Services said in its report today,"We upgrade to Accumulate rating with a revised Target of Rs.1,750 (earlier Rs1,480) factoring volumes nearing pre-Covid levels. Q3FY21 revenue de-grew by 26%YoY, however, sequential growth was strong at 67%, indicating gradual recovery. EBITDA margin improved from 4.9% to 19.1% QoQ which is encouraging though it declined by 1,250bps on YoY basis. PAT was Rs.25.8cr compared to losses in the last two quarters. BIL's cost saving measures across rentals, operations & manufacturing will drive sustainable margin expansion in future. Demand outlook is positive given GoI's strong focus to revive the economy and vaccine rollout. Expect revenue/PAT to grow at 11%/8% CAGR over FY20-23E. We believe, BIL will be able to revive its revenue growth trajectory when the economy is back to normal. We value BIL at 53x on FY23 EPS."

1. 52PM: RailTel IPO subscribed 5 times on Day 2

The Rs 820-crore initial public offering (IPO) of state-owned RailTel Corporation of India was subscribed 4.9 times on its second day of bidding. The public issue was subscribed 7.69 times by retail investors, 0.01 times in QIB category and 1.26 times in the NII category today.

RailTel, the seventh IPO of 2021, at a price band of Rs 93-94 per share, has hit the primary market just after Rs 100-crore IPO of Nureca, which ends today.

RailTel IPO subscribed 5 times on Day 2; Nureca IPO subscription closes

1. 42 PM: Sectors today

Sectorally, except for media and PSU Bank index that were in demand, all the other sectors witnessed selling, with IT, private banking and pharma shares decling overe 1% each.

1. 30 PM: NMDC Q3 outlook

Credit Suisse said in its report today,"We initiate coverage on NMDC with an OUTPERFORM rating and a target price of Rs162.00 (45% upside). We expect NMDC to maintain elevated EBITDA in coming years, driven by (i) enhanced ASPs, as we expect Indian ore supply to remain tight and global ore price to remain at US$100/t+ until FY23E; (ii) higher volumes as it breaks out from the 35mt range, which has lasted many years, on better visibility on Donimalai resumption (7mt); and (iii) improving pricing power as its customer base is much more fragmented than earlier (HHI 1807 from 3218 in FY16). With the steel plant demerger in sight, unlocking of Rs160 bn capital work-in-progress (CWIP) could add further value to the stock."

1.12PM: Nestle India Q3FY21 Results Review

HDFC Securities said in its report today," Nestle's 4QCY20 revenue growth was largely in line with beat in gross margin. High employee cost (long-term compensation arrangements to factory employees) impacted the margin (miss in EBITDA). Domestic revenue grew by 10% YoY while exports were down by 8% YoY. Thereby, overall revenue growth of 9% was slightly below estimates (HSIE 11%). Packaged food category continued to perform well, and Nestle's performance in CY20 was steady (8% YoY growth). Maggi, Kitkat and Nescafe (in-home consumption) posted double-digit growth during the year, capitalising on the reduced mobility among consumers. However, weak coffee exports impacted overall exports (-8% in 4Q and +1% in CY20). GM expanded by robust 231bps YoY to 59%, the highest in the past eight quarters. EBITDA grew by 10.4% as compared to our expectation of 17% growth; the key difference was due to high employee cost (25% up YoY).

It added," We expect Nestle to deliver steady earnings growth, aided by new launches and improved distribution. Moderation in in-home consumption categories will impact key brands but revival in OOH will support growth. We maintain our EPS estimate for CY21E/CY22E. We value Nestle at 55x P/E on CY22E EPS to derive a TP of Rs 16,326. The stock is trading at 58x P/E on CY22E EPS and limits absolute upside in the medium term, making the risk-reward unattractive. Maintain REDUCE."

1. 09 PM: Market falls further

Tracking losses in index majors, share market indices continued to trade on a bearish note on Wednesday, amid mixed global equities. Falling for the second straight session, BSE 30-share Sensex was trading 450 points lower at 51,615 and NSE Nifty 50 fell by 90 points at 15,223.

12. 58 PM: Market update

The market breadth, indicating the overall health of the market was positive on the BSE, with 1030 shares rising, 853 shares falling and a total of 72 shares unchanged.

12. 40 PM: KPTL Q3 outlook

Jyoti Roy - DVP- Equity Strategist, Angel Broking said,"  The company has already sold off three of its distribution assets and is in the process of selling off its fourth distribution asset post which consolidated net debt on books will reduce significantly from current level of Rs. 2,343 crore. Moreover JMC projects in which the company owns a 67% stake has an order backlog of Rs. 14,203 crore at the end of Q3FY21, which provides strong revenue visibility. Sale of Transmission Asset, merger of KPTL and JMC projects, strategic stake divestment in Logistic business will result in a significant deleveraging of the balance sheet over the next few quarters. Management guidance for pledge reduction by Dec'21 is also positive and will lead to a significant rerating for the company. We have a BUY rating on the company with a target price of Rs. 425."

12. 30 PM: Adani Ports share hits new high on Dighi port acquisition

Adani Ports and Special Economic Zone share gained over 5% to new 52 week and an all-time high of Rs 670 on Wednesday, trading as the top gainer on NSE after the company completed the acquisition of Dighi Port Limited (DPL) for Rs 705 crore.

Following the news, Adani Ports shares opened with a gain of 3.53% today at Rs 659 touched an intraday high of Rs 670, rising 5.25% against the last close of Rs 636.55. The stock has climbed 4.36% in the last 5 days.

Adani Ports share hits new high on Dighi port acquisition

12. 17 PM: Telecom sector outlook

JM Financial said in its note today," 3QFY21 witnessed continued leadership of Bharti Airtel in subscriber additions for the second quarter in a row, continued moderation in subscriber additions for Jio and moderation in subscriber losses for VIL. This, in our view, presents a conundrum for the industry, as Jio could delay tariff hikes to increase the subscriber addition momentum, as it has a stated target of 500mn subscribers within the next 3 years. While VIL has reiterated that it would not shy away from a tariff hike, it was waiting for the 'right' time - which we think could indicate continued stability in its subscriber base, while Bharti had reiterated that they would not raise tariffs unless the industry as a whole raises tariffs. Consequently the impending Jiophone and low-cost smartphone launch, and its success in increasing Jio's subscriber addition momentum would be the catalyst for an industry-wide tariff hike."

11. 56 AM: Indraprastha Gas Q3 outlook

Geojit Financial Services said in its note today," Revenue declined 13.2% YoY in Q2FY21 due to lower volumes (-6.5% YoY).CNG volumes down by 9.1% YoY but PNG volumes remains flat. EBITDA margin increased significantly to 10.1pps YoY benefitted by lower natural gas purchase costs and improved volumes partially offset by higher other expenses.Resultantly PAT increased by 18.0% YoY. Improved capacity utilization, easing of COVID restrictions and institutions reopening will support the company's operational and financial performance in the near future. Hence, we reiterate BUY rating on the stock with a revised price target of Rs. 630 based on SOTP methodology."

11. 47 AM: Ujjivan SFB Outlook and Valuation

LKP Securities said in its note today,"Although asset quality deterioration was a negative surprise, we believe management has taken the right step in fast tracking provisions for the stress book, ensuring focus returns to growth in FY22-23E. We believe the company will benefit from lower credit costs and higher growth in FY22-23E due to the clean-up initiated in the quarter. We recommend BUY with target price of ?48, implying a valuation of 2.1x FY23E P/ABV."

11. 30 AM: Gold international & domestic outlook

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research said," International Gold and Silver prices are trading with marginal gains since morning supported by the hopes of quick economy recovery and weak U.S. Dollar. However, upside movement remained capped as U.S. treasury yields raced to their highest levels since the breakout of coronavirus worldwide.

Technically, MCX Gold April opened on a positive and has been trading with same bias. Price are sustaining above 47000 levels and may continue the same in the upcoming session as well. Support is at 47200-47000 levels whereas resistance is at 47700-47800 levels. Market may trade between support and resistance levels during the evening session."

11. 23 AM:  LIC Housing Finance outlook

Jyoti Roy - DVP- Equity Strategist, Angel Broking said," LIC Housing finance is one of India's largest housing finance companies with a loan book of over Rs. 2.1lakh crore at the end of Q3FY21 with a strong presence across all geographies. Stress on the developers loan book which accounts for ~`7% of the company's loan book had led to a de-rating of the stocks as it has raised concerns over asset quality issues. The management has highlighted that 2-3 large developer books will get resolved in Q4FY21. The company has posted a good set of numbers for Q3FY21 as individual home disbursements as up by 30.7% YoY. Incremental cost of funding for the company stood at 5.25% for the quarter which should lead to improvement in spreads going forward.  Management commentary was also positive on the asset quality front as they do not expect an increase in NPA by more than 1% while restructuring should not exceed 1% of the book. Strong growth in disbursements along with lowers than expected stress on asset quality should lead to further rerating for the company. We have a BUY rating on LIC Housing Finance with a target price of Rs. 570."

11. 11 AM: Market update

racking losses in index majors, share market indices continued to trade on a bearish note on Wednesday, amid mixed global equities. Falling for the second straight session, BSE 30-share Sensex was trading 100 points lower at 51,995 and NSE Nifty 50 fell by 20 points at 15,290.

11.08 AM: Nestle share price drops 5% post Q3 earnings

Shares of Nestle India traded as the top loser in the Sensex pack, falling over 5% intraday after the FMCG major reported 2.25 per cent on-year rise in its net profit for the quarter ended December to Rs 483.3 crore,  compared with Rs 472.64 crore in the corresponding quarter of the previous fiscal.

Following the result update, shares of the most consistent Sensex performers from FMCG category opened at day's high of Rs 16,900 and fell 5.01% to hit an intraday low of Rs 16,360 on BSE.

Later the stock was trading 2.7% lower at Rs 16,748, as against the previous close of Rs 17,222.45. The stock has fallen 4.8% in the last 2 days.

During the quarter under review, the company's revenues in the quarter grew 9% YoY to Rs 3,432.6 crore. The board of the packaged food major also approved a final dividend for the financial year ended December 31 of Rs 65 per share.

Nestle share price drops 5% post Q3 earnings; top loser on BSE

10. 52 AM: Market update

Share market indices opened on a bearish note on Wednesday, amid mixed global equities. Falling for the second straight session, BSE 30-share Sensex was trading 180 points lower at 51,893 and NSE Nifty 50 fell by 55 points at 15,257. Nestle India, ONGC, HDFC, TCS, PowerGrid and ICICI Bank were among the top losers today. On the other hand, Bajaj Auto, SBI, Bajaj Finance and Reliance Industries were among the gainers.

10. 45 AM: Nifty outlook

Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said,"Monday's strong close coupled with favourable global cues in the morning, our markets managed to carry their momentum at the opening yesterday. However, since we reached a crucial resistance zone of 15380 - 15500 (which is the 161% 'Golden Ratio' of the entire fall from Jan'20 highs to March'20 lows), markets saw some profit booking at higher levels. We were not surprised with it as we had advocated on booking profits in the mentioned range. With yesterday's small correction, still there is no weakness visible on charts; but we continue to remain cautious and advise against creating aggressive longs now. For the coming session, 15380 - 15430 remains to be a key resistance; whereas on the lower side, further weakness is possible after breaking below 15240. In this scenario, 15175 - 15100 can be retested.

10. 32 AM: Seven Islands files papers for Rs 600 crore IPO

Logistics firm Seven Islands Shipping on Tuesday said it has filed papers with markets regulator Sebi for a public offering to raise up to Rs 600 crore.

The company said it will utilise the proceeds to buy vessels at a cost of Rs 352.43 crore.

"Sea-borne logistics company Seven Islands Shipping has filed its papers with the regulator for a Rs 600-crore initial public offering," the company said in a statement.

Logistics firm Seven Islands files papers for Rs 600 crore IPO

10. 20 AM: Bitcoin races past $50,000 for first time

Bitcoin rose above $50,000 on Tuesday to a new record high, building on a rally fuelled by signs that the world's biggest cryptocurrency is gaining acceptance amongst mainstream investors.

Bitcoin hit a new high of $50,602, and was last up 5% at $50,300. It has risen around 72% so far this year, with most of the gains coming after electric carmaker Tesla said it had bought $1.5 billion in bitcoin.

Bitcoin races past $50,000 for first time amid growing acceptance

10. 12 AM: Global markets today

Asian markets are trading lower taking cues from overnight weakness seen in S&P500 on rising bond yield concerns. Japan's exports rose 6.4% in Jan.

US markets marked fresh highs yesterday backed by cyclical sectors on expectation of more fiscal stimulus to power economy but NASDAQ & S&p500 closed off the highs later.

European markets closed on a mixed note as positivity which fueled recent upside lost steam. Euro zone GDP contracted 0.6% QoQ against estimate of 0.7% fall.

Oil price continued to move up as a cold front shut wells and refineries in Texas and as Houthi group claimed to have struck airports in Saudi Arabia which raised supply concerns

10.06 AM: Nifty Outlook

Geojit Financial said in its note today," The doubts we had cast on upside prospects yesterday intensified after exhaustion set in following rapid ascent to the mid 15400s early in the day. The pull back thereof now aims the downside marker of 15179 that we had noted yesterday. Directional moves are less expected, with the day likely to be dominated by briefy choppy moves."

9. 55 AM: Top losers and gainers

Nestle India, ONGC, HDFC, TCS, PowerGrid and ICICI Bank were among the top losers today. On the other hand, Bajaj Auto, SBI, Bajaj Finance and Reliance Industries were among the gainers.

9. 46AM: Morning market view

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.," An important development yesterday was the US 10-year bond yield touching 1.29%, the highest level since Feb 2020. The bond market is factoring in a rise in inflation in the coming months. The rise in yield reflects the market's concern that President Biden's proposed $1.9 trillion fiscal stimulus package on top of the massive monetary stimulus will lead to a spike in inflation. If the yields continue to rise, it can be negative for equity markets. It may be too early to take an investment call based on this. But, this space has to be watched. The texture of the market continues to be 'Buy on Dips' since FPI inflows continue to be strong"

9. 40 AM: Nestle Q3 outlook

 Amarjeet Maurya - AVP - Mid Caps, Angel Broking said, "During the 4QCY20, Nestle India Ltd (NIL) reported revenue of ~Rs3,433cr (up ~9% YoY) due healthy domestic sales growth, broad based and largely driven by volume and mix. Nearly two thirds of our key products, boosted by in-home consumption, posted double digit growth. Further, E-Commerce grew by 111% and now contributes 3.7% of domestic sales.  On the EBITDA front, the company has reported Rs777cr and EBITDA margin at 22.6%, which is up by 60bps yoy due to lower operating expenses.  On the bottom-line front, PAT grew by ~2% to Rs483cr."

9. 34 AM: Stocks to watch today on February 17

Future Retail, L&T Finance, ICICI Bank, Adani Ports, TVS Srichakra, Nestle  among others are the top stocks to watch out for in Wednesdday's trading session

Stocks in news: Future Retail, L&T Finance, ICICI Bank, Adani Ports, TVS Srichakra, Nestle

9. 27 AM: Opening session

Share market indices opened on a bearish note on Wednesday, amid mixed global equities. Sensex was trading 180 points lower at 51,893 and Nifty fell by 55 points at 15, 257.

9. 15 AM: Nifty outlook

Reliance Research said in its note today," NSE-NIFTY extended gain post surpassing its near-term hurdle of 15,250-level convincingly and recorded new high of 15,432-level. Later due to higher level profit booking the index ended on a flat note. Overall market breadth remained negative and major sectors remained mix. Major technical indicators turned negative, but remained above their threshold level. The index has potential to test 15,500-15,800-16,000-level in the short-term. In case of decline, the index will find support at around 15,000-level initially and 14,850-level subsequently. 

As for the day, support is placed at around 15,227 and then at 15,140 levels, while resistance is observed at 15,416 and then at 15,519 levels."

9. 09 AM: FII action

Foreign portfolio investors (FPIs) bought shares worth Rs 1,144.09 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,559.53 crore in the Indian equity market on 16 February, provisional data showed.

9.00 AM: Global markets

Asian stocks were trading lower on Wednesday following overnight cues from US and European markets. Markets in China remain closed on Wednesday for the Lunar New Year holidays. Meanwhile, Japan's exports rose 6.4% in January as compared with a year earlier.

In US, the Dow hit an all-time high on Tuesday, while the S&P 500 and the Nasdaq retreated slightly from record levels.

8. 50 AM: Closing

Yesterday, Sensex ended 49 points lower at 52,104 and Nifty fell 1.25 points to 15,313.Sun Pharma, ITC, HDFC were trading among the top losers today while RIL, L&T, Maruti were among the top gainers. Sensex hit a record high of 52,516 and Nifty hit a lifetime high of 15,431.

On the currency front, Indian rupee depreciated to 72.775, compared with its previous closing of 72.68.

Sensex, Nifty close flat after scaling record highs

Top gainers on Tuesday: List of 8 shares that rose up to 6%: PowerGrid, ONGC, NTPC, Kotak Bank