The benchmark indices slumped on Friday, dragged by heavy selling in banks and financial stocks. The Nifty gave up the crucial 14,400 mark. Negative global cues triggered profit booking in domestic shares. As per the provisional closing data, the S&P BSE Sensex, tumbled 746.22 points or 1.5% at 48,878.72. The Nifty 50 index dropped 218.45 points or 1.5% at 14,371.75.
The broader market tumbled. The S&P BSE Mid-Cap index fell 1.19% while the S&P BSE Small-Cap index slipped 1.04%.
Sellers outnumbered buyers. On the BSE, 984 shares rose and 1,996 shares fell. A total of 137 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,614.66 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,039.48 crore in the Indian equity market on 21 January 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 9,74,95,558 with 20,89,460 deaths. India reported 1,88,688 active cases of COVID-19 infection and 1,53,032 deaths while 1,02,83,708 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Primary Market:
The initial public offer (IPO) of Indigo Paints received bids for 29.84 crore shares as against 55.18 lakh shares on offer on Friday (22 January 2021), according to the stock exchange data at 15:15 IST. The issue was subscribed 54.09 times. The issue opened for subscription on Wednesday (20 January 2021) and it will close today (22 January 2021). The price band for the IPO is set at Rs 1488-1490 per share. An investor can bid for minimum of 10 equity shares and in multiples thereof. The IPO consists of fresh issue of equity shares aggregating to Rs 300 crore and an offer of sale of up to 58.40 lakh equity shares by the selling shareholders. Shares of Indigo Paints will list on 2 February 2021 on stock exchanges.
The initial public offer (IPO) of Home First Finance Company India received bids for 2.46 crore shares as against offer size of 1.56 crore share on offer on Friday (22 January 2021), according to the stock exchange data at 15:15 IST. The issue was subscribed 1.58 times. The issue opened for subscription on Thursday (21 January 2021) and it will close on Monday (25 January 2021). The price band for the IPO is set at Rs 517-518 per share. An investor can bid for minimum of 28 equity shares and in multiples thereof. The IPO consists of fresh issue of equity shares aggregating to Rs 265 crore and an offer of sale of equity shares aggregating up to Rs 888.71 crore (including anchor portion of 66.81 lakh equity shares). The company proposes to utilize the net proceeds from the offer for augmenting equity capital base to meet future capital requirements arising out of growth in business. Shares of Home First Finance will get listed on 3 February 2021.
Results Today:
Index heavyweight Reliance Industries (down 2%) and HDFC Life Insurance Company (down 1.70%) will announce Q3 results today.
Earnings Impact:
SBI Life Insurance Company slipped 1.17% to Rs 868.35 after life insurer's net profit declined by 40.3% to Rs 232.85 crore on a 68.3% rise in total income to Rs 26,551.90 crore in Q3 FY21 over Q3 FY20. While the company's net premium income improved by 17.7% to Rs 13,766.49 crore, net income from investments surged to Rs 12,776.91 crore in Q3 December 2020 over Q3 December 2019. Profit before tax in Q3 FY21 stood at Rs 233.08 crore, down by 40.9% from Rs 394.91 crore in Q3 FY20.
Biocon tumbled 11.3% after the company's consolidated net profit fell 16.9% to Rs 169 crore on 8% rise in revenue from operations to Rs 1,851 crore in Q3 FY21 over Q3 FY20. EBITDA declined by 11% to Rs 427 crore in Q3 December 2020 from Rs 480 crore in Q3 December 2019. EBITDA margins was at 23% as on 31 December 2020 as against 27% as on 31 December 2019. Revenue from Generics was Rs 561 crore (down 3% YoY), revenue from Biosimilars was Rs 769 crore (up 11% YoY) and revenue from Research services was Rs 585 crore (up 13% YoY). Meanwhile, Biocon said that Dr. Christiane Hamacher, has stepped down as the managing director of Biocon Biologics, a subsidiary of the company, and has also ceased to be a member of the board of directors of Biocon Biologics, effective from 20 January 2021.
JK Tyres & Industries was locked in an upper circuit of 20% after the company's consolidated net profit surged to Rs 230.66 crore in Q3 December 2020 over a net profit of Rs 11.65 crore in Q3 December 2019. Consolidated net sales jumped 25.9% to Rs 2769.28 crore in Q3 FY21 as against Rs 2199.80 crore in Q3 FY20. EBITDA doubled to Rs 507 crore in Q3 December 2020. Profit before tax was at Rs 342.97 crore in Q3 December 2020 as against Rs 23.31 crore in Q3 December 2019.
Cyient was locked in an upper circuit of 20% after the IT firm's net profit rose 13.8% to Rs 95.40 crore on a 4.1% increase in revenue to Rs 1,044.30 crore in Q3 FY21 over Q2 FY21. In dollar terms, consolidated revenue stood at $141.40 million for the quarter; up 4.7% quarter-on-quarter (Q-o-Q) and down 8.9% year-on-year (Y-o-Y). In constant currency, revenue was up 4.1% Q-o-Q.
Multi Commodity Exchange of India (MCX) fell 0.25%. MCX's consolidated net profit jumped 29.2% to Rs 71.80 crore on 13% surge in net sales to Rs 100.90 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) soared 15.3% to Rs 67.59 crore in Q3 December 2020 as against Rs 58.62 crore in Q3 December 2019. EBITDA for the quarter ended 31 December 2020 jumped 17% to Rs 73.45 crore from Rs 62.67 crore over the corresponding quarter ended 31 December 2019. For the quarter ended 31 December 2020, the EBITDA margin stood at 58% and while PAT margin was at 57%.
SRF tumbled 6% after the company's consolidated net profit fell 5.3% to Rs 324.73 crore on 17.8% surge in net sales to Rs 2,129.43 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) soared 72.7% to Rs 443.23 crore in Q3 December 2020 as against Rs 256.58 crore in Q3 December 2019. Consolidated Earnings before Interest and Tax (EBIT) jumped 42% to Rs 479 crore in Q3 FY21 from Rs 337 crore in Q3 FY20 (when compared with CPLY). Net of one-time tax adjustments in CPLY, the consolidated PAT soared 46% to Rs 324 crore in Q3 December 2020 over Rs 221 crore in Q3 December 2019.
Indian Energy Exchange (IEX) fell 3.28%. The company's consolidated net profit grew by 39.5% to Rs 58.14 crore on 42.8% rise in net sales to Rs 85.23 crore in Q3 December 2020 over Q3 December 2019. The company's consolidated profit before tax stood at Rs 75.74 crore in Q3 December 2020, 43.8% higher than Rs 52.66 crore in the same period last year. Consolidated EBITDA stood at Rs 80.5 crore in quarter ended December 2020, rising 41.8% from Rs 63.2 crore in the corresponding period last year. The energy exchange said it delivered the most robust quarterly performance till date.
Supreme Petrochem tumbled 5%. The company's net profit surged to Rs 171.62 in Q3 FY21 from Rs 2.07 crore Q3 FY20. Net sales rose jumped 50% to Rs 928.79 crore in the third quarter from Rs 619.08 crore in the same period last year. Total expenditure was Rs 690.28 crore (up 13.2% YoY), interest payments were Rs 2.49 crore (up 24.5% YoY) and depreciation costs were Rs 10.05 crore (up 7% YoY) in Q3 FY21. Profit before tax in Q3 December 2020 stood at Rs 233.32 crore, significantly higher as compared to Rs 2.68 crore in Q3 December 2019.
Global Markets:
The US Dow Futures were down 240 points, indicating a weak opening in the US market today.
European markets were trading lower. The European Central Bank kept interest rates unchanged on Thursday but said it stands ready to act as coronavirus infection rates rise across the euro zone, leading to renewed lockdown measures.
Asian markets tumbled on Friday as investors took some money off the table after a recent rally that was driven by hopes a massive U.S. economic stimulus plan by incoming President Joe Biden will help temper the COVID-19 impact.
Japan's core consumer prices slumped in December at the fastest annual pace in a decade. The nationwide core consumer price index (CPI), which includes oil but excludes fresh food costs, fell 1% in December from a year earlier, government data showed.
In US, the S&P 500 and Nasdaq closed at record highs on Thursday, propelled by optimism about more pandemic relief under the Biden administration to support the economy.
Investors are watching if President Joe Biden can get his proposed $1.9 trillion coronavirus relief bill through Congress. House Speaker Nancy Pelosi said Thursday the chamber is ready to pass the bill in the first week of February.
Biden released details of his COVID-19 plan on his first full day in office, including 10 executive orders and his intent to use the Defense Production Act to ramp up protective equipment production. Biden will seek to accelerate the rollout of vaccines by providing more local and state funding, creating more vaccination sites and launching a national education campaign.
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