HDFC Bank stock falls after Sebi imposes Rs 1 crore fine
Shares of HDFC Bank on Friday fell by over 1 percent after Sebi imposed a penalty of Rs 1 crore for invoking securities pledged by stockbroker BRH Wealth Kreators in violation of the regulator’s interim directions In an order on Thursday, Sebi noted that the instant proceedings have essentially arisen on account of non-conformity by HDFC Bank with the directions contained in the interim order issued by Sebi against BRH Wealth Kreators and other entities on October 7, 2019.
In addition, the bank has been directed to transfer Rs 158.68 crore along with 7 percent interest per annum into an escrow account till the issue of settlement of clients’ securities is reconciled.
Om Metals Infraprojects | The company has received the Letter of Award (LOA) from Government of Punjab for project works of Shahpurkandi power house project with value of Rs 621 crore for the construction of Two power houses, their appurtenant works an part of Hydel Channel of Shahpurkandi Dam Project on EPC mode from Water Resource Department, Government of Punjab, Shahpurkandi Township.
Indigo Paints IPO subscribed over 16 times
The public offer of Indigo Paints has been subscribed 16.24 times so far on January 22, the final day of bidding, receiving bids for 8.96 crore equity shares against the IPO size of 55.18 lakh shares (excluding anchor book), the subscription data available on exchanges showed. The portion set aside for qualified institutional buyers witnessed a subscription of 12.24 times and that of non-institutional investors was subscribed 35.24 times. The retail investors have put in 12.36 times bids against their reserved portion.
Yash Gupta Equity Research Associate, Angel Broking
We expect the market to be volatile till the budget. On upside 14,700 will be a hurdle for nifty and 14,300 on the downside till this expires on 28th January 2021. We suggest Long Investors should be cautious on the market and can have some cash in their portfolio to buy on dips and Intraday traders to trade with strict stop loss
Caplin Point | Caplin Steriles, subsidiary of Caplin Point Laboratories, has been granted final approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Argatroban Injection, 50 mg/50 ml (1 mg/ml) Single-dose vial presentation, a generic therapeutic equivalent version of (RLD), Argatroban Injection, of Hikma Pharmaceuticals Limited.
Alembic Pharmaceuticals | The company has received USFDA approval for Midodrine Hydrochloride Tablets, used for the treatment of symptomatic orthostatic hypotension
Home First Finance Company IPO Day 2: Issue subscribed 1.34 times so far; retail portion booked 1.88 times
The Rs 1,153 crore-initial public offering (IPO) of mortgage lender Home First Finance Company India Limited was subscribed 1.34 times on Friday, the second day of bidding. The issue has received bids for 2.09 crore equity shares till 12 noon against an offer size of more than 1.56 crore shares, according to data available on the exchanges.
The portion reserved for retail investors has been subscribed by 1.88 times and that of non-institutional investors by 0.15 times. The portion set aside for qualified institutional buyers was subscribed 1.28 times.
Bandhan Bank shares fall over 5% as brokerages raise concerns over credit cost
The share price of Bandhan Bank declined over 5 percent in early trade on Friday after certain brokerages cut FY21 earnings estimates for the bank due to elevated credit cost seen ahead. On Thursday, the bank reported a 13.4 percent fall in Q3FY21 net profit to Rs 633 crore from Rs 731 crore for the year-ago period. Its core net interest income grew 34 percent to Rs 1,541 crore on the back of a widening in net interest margin to 8.3 percent from 7.9 percent and 22.6 percent growth in the loan book.
Brokerages have raised concerns over the bank’s higher than expected credit costs and uncertainties lying ahead over the political promises of microfinance loan waivers in Assam and West Bengal. “Bandhan Bank’s 3QFY21 net profit of Rs 6.4 billion missed our estimate by 20 percent primarily due to a higher-than-expected credit cost. Bandhan’s collections plateaued in November 2020 and recent political events in Assam have led to a more than 10percent drop in collections in Assam in January 2021,” CLSA said. More here
Stove Kraft IPO: Issue opens for anchor investors, grey market premium jumps 26%
Stove Kraft was trading at a premium of 26 percent more than its higher issue price band of Rs 385 per share in the grey market after the company announced its IPO on Thursday. The initial public offer for anchor investors will open for subscription by anchor investors today. The stock was trading at a premium of Rs 90-100 per share, meaning the grey market speculates its value to be around Rs 475-485. The 400 crore IPO of Stove Kraft will hit the market for retail investors on January 25 in the price range of Rs 384-385 apiece. Its public issue comprises a fresh issue of Rs 95 crore by the company and an offer for sale of Rs 82.50 lakh shares by promoters and investors. More here
Earnings Review: Bajaj Auto shares jump 10% to hit 52-week high; should you buy?
Shares of Bajaj Auto rose nearly 10 percent to hit 52-week high on Friday after the auto major clocked its highest-ever standalone profit and turnover in the December quarter. The company’s standalone net profit rose 23 percent year-on-year to Rs 1,556.28 crore versus Rs 1,261.6 crore in the year-ago period. The rise in profit was driven by a rise in volume growth and operating performance. Bajaj Auto recorded the highest ever turnover which for the first time ever exceeded Rs 9,000 crore and the highest ever profit after tax at over Rs 1,500 crore.
Most brokerages were also bullish on the stock post such strong results in the December quarter. Brokerage house CLSA maintained its ‘outperform; rating but raised its target price from Rs 3,725 to Rs 3,915. It also increased FY21-23 EPS estimates by 5-6 percent to factor a better outlook for exports and operating cost management.
Market Watch: Ashish Kyal of Waves Strategy
“The first stock on the buy side is Solara Active Pharma, we can clearly see this stock is outperforming within the pharma space, form some kind of a triangular pattern, giving a breakout on the upside, bouncing back from the important average, increase in the volumes and the RSI is also supporting. So I think Solara Active can be a buy from here keeping a stop loss of Rs 1,299 for the target of Rs 1,445.”
“The next stock on the buy side is from the auto ancillary space Amara Raja Batteries. We can clearly see this space is buzzing around. Auto stocks have been the flavour of the week and that is what we can see in Tata Motors, Maruti and other ancillary stocks like Apollo Tyres. I think Amara Raja Batteries should start catching up big time on the upside. One can initiate a long positions here riding that third wave on the upside for the target of Rs 1,080 with a stop loss of Rs 970 on downside.”
Disclaimer: The analyst does not hold any of these stocks which I have disclosed right now.
Oil prices fall as China’s surging COVID-19 cases trigger clampdowns
Oil prices dropped on Friday, retreating further from 11-month highs hit last week, weighed down by worries that new pandemic restrictions in China will curb fuel demand in the world’s biggest oil importer. U.S. West Texas Intermediate (WTI) crude futures dropped 53 cents, or 1 percent, to $52.60 a barrel at 0445 GMT, after slipping 18 cents on Thursday. Brent crude futures fell 45 cents, or 0.8 percent, to $55.65 a barrel, erasing a 2 cent gain on Thursday. Recovering fuel demand in China underpinned market gains late last year while the United States and Europe lagged, but that source of support is fading as a fresh wave of COVID-19 cases has sparked new restrictions to contain the spread.
Abhishek Upadhyay OF I-sec PD don’t expect rate cut by RBI in the upcoming credit policy, says inflation on the lower side is surprising, can be below 5%. Real policy rates to stay negative due to inflation being sticky pic.twitter.com/ffaenfUm4c
— CNBC-TV18 (@CNBCTV18Live) January 22, 2021
Buzzing | Shares of JK Tyre and Industries rallied over 12 percent after the company reported a multi-fold jump in consolidated net profit to Rs 230.46 crore in the third quarter of fiscal 2021 from Rs 10.27 crore in the year-ago period. Consolidated revenue from operations during the period stood at Rs 2,769.28 crore as against Rs 2,199.80 crore in the corresponding quarter last fiscal.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty has become slightly nervous after facing resistance at 14,750. While the trend still remains positive, we need to approach the index strategically. On the upside, we can go up to 14,800-14,900. On the downside, we have good support at 14,300. Hence traders can initiate long positions with a target of 14,800 and a stop below 14,300.
Home First Finance Company IPO fully subscribed on day 1
The Rs 1,153 crore-initial public offering (IPO) of mortgage lender Home First Finance Company India Limited was subscribed 1.03 times on Thursday, the first day of bidding. The issue has received bids for 1.24 crore equity shares against an offer size of more than 1.56 crore shares, according to data available on the exchanges. The company already raised Rs 346 crore from anchor investors on January 20 and the issue size has been reduced to 1.56 crore shares (or Rs 880 crore) after fund-raising from the anchor book. The portion reserved for retail investors has been subscribed 87.5 percent and that of non-institutional investors 6.9 percent. The portion set aside for qualified institutional buyers was subscribed 1.2 times. More here
Reliance Jio Q3 earnings: Revenue growth seen at 3.9% on QoQ basis
Reliance Jio, the telecom business of Reliance Industries Ltd (RIL), will be announcing its Q3FY21 earnings today. Jio is expected to report a 3.9 percent revenue growth on a quarter-on-quarter (QoQ) basis. This revenue growth will be lower compared to what was seen in the last few quarters. The key reason for the lower revenue growth is the muted net subscriber addition. CNBC-TV18’s Reema Tendulkar lists out the key expectations from the Jio vertical in RIL’s third-quarter earnings.
Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.
Opening Bell: Sensex opens 100 points lower, Nifty below 14,600; banks, IT stocks drag
Indian indices opened lower on Friday mainly dragged by IT and banking stocks. HDFC, Infosys, HDFC Bank, TCS and Axis Bank contributed most to the decline, however, gains in RIL, Asian Paints and Bajaj Auto capped some losses. At 9:18 am, the Sensex was down 123 points at 49,501 while the Nifty fell 27 points to 14,563. Broader markets outperforemd the benchmarks with the midcap and smallcap indices up 0.3 percent each. Among sectors, The Nifty Bankand Nifty Fin Servcies indcies fell 0.7 percent each while Nifty IT and Nifty Pharma were down 0.4 percent and 0.6 percent, respectively. However, Nifty Auto gained 1 percent while the FMCG and metal in dices were also in the green.
Reliance Industries Q3FY21 earnings today: Here’s what to expect
Reliance Industries (RIL) is set to announce its December-quarter earnings on Friday. A sequential recovery is expected across all segments for the company in Q3. Here are the key expectations: On the revenue front, a 13.5 percent growth is expected at Rs 1.26 lakh crore. The operational performance is also likely to improve, with 16.5 percent growth sequentially at Rs 22,100 crore. A slight improvement is expected in the operating profit margins and the core profitability may see a 15.6 percent growth.
Disclosure: Network 18, which publishes cnbctv18.com, is a part of the Reliance Group. For more details, watch the video
JUST IN: Petrol now at record high of Rs 85.45/litre in Delhi & in Mumbai, it’s Rs 92.04/litre
Bitcoin extends slide, sheds 5% in Asia, drops below $30,000
Bitcoin fell to an almost three-week low on Friday as profit-taking and worries about extra regulation drive the cryptocurrency toward a weekly loss of more than 15 percent. Bitcoin fell nearly 5 percent to USD 29,300 early in the Asia session, its lowest since Jan. 4 and some 30 percent below its record high of USD 42,000 hit two weeks ago. The pullback comes amid growing concerns that bitcoin is one of a number of financial market price bubbles. Fears that US President Joe Biden’s administration could attempt to regulate cryptocurrencies have also weighed on sentiment, traders said. During a Senate hearing on Tuesday Janet Yellen, Biden’s pick to head the US Treasury expressed concerns that cryptocurrencies could be used to finance illegal activities. More here
Bandhan Bank Q3 profit slips 14%; flags concerns over Assam law on MFIs
Micro loans-focussed Bandhan Bank on Thursday reported 14 per cent decline in December quarter net profit at Rs 632.59 crore as provisions more than trebled. The bank also flagged concerns over the impact of a recent law on MFI loans in poll-bound Assam, which constitutes 8 percent of its overall book, saying the loan collections have suffered in the last fortnight and it will be cautious while extending new loans. The bank’s core net interest income grew 34 percent to Rs 1,541 crore on the back of a widening in net interest margin to 8.3 percent from 7.9 percent and 22.6 percent growth in loan book. The other income grew handsomely to Rs 553.28 crore from Rs 357 crore in the year-ago period. More here
Bitcoin slips 10% to a 10-day low
Bitcoin slumped 10% on Thursday to a 10-day low, retreating further from record highs, with traders citing fears of tighter U.S. regulation. The world’s most popular cryptocurrency Bitcoin was last down 7.5% at $32,779 after falling as low as $31,977. It has lost nearly a quarter since touching a record $42,000 on Jan. 8. The pullback comes amid growing concerns that bitcoin is one of a number of financial market price bubbles. Fears that U.S. President Joe Biden’s administration could attempt to regulate cryptocurrencies have also weighed on sentiment, traders said. More here