Markets extended weakness on Thursday with Sensex breaching short-term support of 71,500 and re-tested the earlier breakout zone of 70,650-70,665 with major pressure seen from IT and Banks. During yesterday’s decline, broader markets witnessed outperformance while India VIX declined and remained lower by 7%. The decline in India VIX may be hinting that put writers would have resumed putting writing at 21,000 strikes in Nifty 50 and may act as a trigger for a sharp rebound. Overall, the view of markets remains cautious but any further decline in India VIX should be seen as a positive trigger for the markets.
Results Today – Reliance Limited, HUL, Ultratech Cement, Paytm, Sunteck
Sensex 30 Chart
Stocks to watch
Positive Read through
- IndusInd Bank – NIM stable QoQ at 4.29 pct, operating profit grows for 12th straight quarter.
- Bajaj Finance – Board meet on January 29 to consider fundraising via debt.
- Poonawalla Fin – Aum increased by 57.60 pct YoY, NIM at 11.02 pct vs 11.42 pct QoQ.
- Finolex Ind – EBITDA rose 31 pct, margin inclined by 360 bps at 11.80 pct vs 8.20 pct YoY.
- Lupin – Gets US GDA approval for Hyperuricemia drug Febuxostat.
- Shalby – To acquire an 87.26 pct stake in PK Healthcare for Rs 1.02 bn.
- EMS – Declares the lowest bidder for a Project worth Rs. 4789 mn from Uttarakhand Government.
- HCC – Swis arm divests entire stake in Steiner Construction SA for Rs. 9,280 mn.
- Zydus Life – Signs exclusive licensing and supply agreement for Palbociclib tablets.
- PFC – Incorporates two SPVs for developing transmission projects in Gujarat and Rajasthan.
- Mahindra Holidays – To invest Rs 8 bn in Tamil Nadu to build three Greenfield resorts.
- REC – Designated as the overall implementation agency for the rooftop solar program of the Renewable Energy Ministry.
- Indian Bank – Gets RBI approval for setting up a new wholly-owned operations support subsidiary.
Negative Read through
- Dixon Tech – The Directorate of Revenue Intelligence conducts searches at the unit.
- Metro brands – EBITDA down 3 pct, margin stood at 31.3 pct vs 34.3 pct YoY.
- Supreme Petro – Board approves capex of Rs 8,000 mn, EBITDA down by 10.70 pct QoQ.
- Home First Fin – Asset quality deteriorates, NIM at 5.70 pct vs 6 pct QoQ.
- 360 One – Sales up by 2.8 pct, brokerage income declined 13 pct QoQ.
- Shopper Stop – EBITDA down by 9 pct, margin at 18.1 pct vs 21.2 pct YoY.
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