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CAPITALSTARS PRESENT WEDNESDAY CURRENT MARKET NEWS : 10 FEBRUARY 2021

10 feb (6)

Sensex, Nifty end flat amid volatile session; auto shares buck trend.

The domestic equity benchmarks ended almost flat after a volatile session on Wednesday. The Nifty regained 15,000 mark after slipping below that level in intraday trade. Investors booked profits after recent steep gains.

As per provisional closing data, the barometer index, the S&P BSE Sensex, slipped 19.69 points or 0.04% to 51,309.39. The Nifty 50 index lost 2.80 points or 0.02% to 15,106.50.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.71%. The S&P BSE Small-Cap index gained 0.42%.

Sellers outpaced buyers. On the BSE, 1486 shares rose and 1476 shares fell. A total of 163 shares were unchanged.

Buzzing Index:

The Nifty Auto index rose 1% to 11,016.20. The index had declined 1.39% in the previous session.

Mahindra & Mahindra (up 2.16%), Bharat Forge (up 1.91%), Tata Motors (up 1.26%), Hero MotoCorp (up 1.21%) and TVS Motor Company (up 0.60%) advanced.

Eicher Motors (down 2%) and Ashok Leyland (down 0.56%) declined.

Earnings Impact:

GAIL (India) rose 1.98% to Rs 133.60. The state-owned natural gas processing and distribution company’s consolidated net profit slipped 6.5% to Rs 1897.04 crore on 12.39% decline in revenue from operations to Rs 15,680.62 crore in Q3 FY21 over Q3 FY20.

Tata Steel slipped 1.19% to Rs 691.20. On a consolidated basis, the steel major reported net profit at Rs 4,010.94 crore in Q3 December 2020 compared with net loss of Rs 1,228.53 crore in Q3 December 2019. Net sales jumped 11.6% to Rs 38,805.91 crore in Q3 FY21 over Q3 FY20. EBITDA improved 53% QoQ and 161% YoY to Rs 9,540 crore, with improved realization across key entities. The company generated free cash flow of Rs 12,078 crore in Q3FY21, driven by strong operating performance and better working capital management.

Mahanagar Gas lost 0.78% to Rs 1130.45. The city gas distributor’s net profit increased 16.7% to Rs 217.21 crore on 10.5% decline in net sales to Rs 666.40 crore in Q3 FY21 over Q3 FY20. CNG sales volumes jumped 47.58% to 173.26 million SCM (standard cubic metre) and total PNG sales volumes rose 11.29% to 81.61 million SCM in Q3 FY21 over Q2 FY21. Total volumes jumped 33.63% quarter-on-quarter to 254.88 million SCM in Q3 FY21.

Torrent Power rose 1.29% to Rs 330. On a consolidated basis, Torrent Power’s net profit dropped 23.5% to Rs 321.73 crore on a 4.1% decrease in net sales at Rs 2,952.75 crore in Q3 December 2020 over Q3 December 2019.

Burger King fell 1.23% to Rs 152.05 after the company posted a net loss of Rs 29.03 crore in Q3 FY21, higher than net loss of Rs 21.73 crore in Q3 FY20. Net sales dropped 28.4% to Rs 163.19 crore in Q3 FY21 as against Rs 227.92 crore in Q3 FY20.

The company opened 9 new stores in Q3 FY21 while the total store count as of 31 December 2020 stood at 270 stores. Same store sales growth (SSG) stood at -34.8% in Q3 FY21 as against -0.2% in Q3 FY20. It expects SSSG growth at 5%-7% FY22 onwards and expects number of stores at 470 in FY24.

Varroc Engineering tumbled 7.64% to Rs 420.20 after the company reported consolidated net loss of Rs 136.96 crore in Q3 FY21 compared with net profit of Rs 29.33 crore in Q3 FY20. Net sales jumped 24.6% to Rs 3,492.66 crore in Q3 FY21 over Q3 FY20. The India business revenue increased 29.2% year on year. The Global Lighting Business (VLS) revenue increased 9.0% YoY in Euro terms.

The company posted a pre-tax loss of Rs 112.86 crore in Q3 FY21 as against a pre-tax profit of Rs 48.64 crore in Q3 FY20. Current tax expense declined 23.8% to Rs 18.10 crore in Q3 FY21 over Q3 FY20. Reported EBITDA declined 8.8% year on year to Rs 245.65 crore in Q3 FY21 over Q3 FY20. EBITDA margin declined to 7% in Q3 FY21 from 9.6% in Q3 FY20, mainly due to lower margins in VLS.

Spandana Sphoorty Financial slumped 6% to Rs 714.90 after the microfinance lender reported a consolidated net loss of Rs 29.72 crore in Q3 FY21 compared with net profit of Rs 129.53 crore in Q3 FY20. Total income fell 4% year-on-year (YoY) to Rs 344.26 crore during the quarter. Impairment charge on financial instruments and other provisions stood at Rs 199.93 crore in Q3 December 2020, steeply higher than Rs 41.54 crore in Q3 December 2019. The company reported a pre-tax loss of Rs 36.56 crore in Q3 FY21 as against a pre-tax profit of Rs 175.80 crore in Q3 FY20. Current tax outgo declined by 87.5% YoY to Rs 3.23 crore during the period under review.

Polyplex Corporation jumped 16.96% to Rs 880.05 after the company posted an 81.4% jump in consolidated net profit to Rs 224.73 crore on a 13.3% rise in net sales to Rs 1237.22 crore in Q3 FY21 over Q3 FY20. Further, the company’s board declared a special interim dividend of Rs 100 per share. Record date for the same has been fixed at 19 February 2021.

Bank of India rose 2.79% to Rs 60.85 after the state-run lender reported 412.39% surge in net profit to Rs 541 crore in Q3 FY21 from Rs 106 crore in Q3 FY20. Net Interest Income (NII) declined by 9.19% to Rs 3,740 crore in the third quarter from Rs 4,118 crore in the same period last year. Net Interest Margin (NIM) was at 2.81% as on 31 December 2020 as against 3.45% as on 31 December 2019.

On the asset quality front, the ratio of gross NPAs (GNPA) to gross advances stood at 13.25% as on 31 December 2020 as against 13.79% as on 30 September 2020 and 16.30% as on 31 December 2019. The ratio of net NPAs (NNPA) to net advances stood at 2.46% as on 31 December 2020 as against 2.89% as on 30 September 2020 and 5.97% as on 31 December 2019.

TTK Prestige surged 17.96% to Rs 6982.55 after the company’s consolidated net profit increased by 37.2% to Rs 83.84 crore on a 23.6% rise in revenue from operations to Rs 725.63 crore in Q3 FY21 over Q3 FY20.

Global Markets:

Most European shares declined while Asian shares advanced on Wednesday as traders digest a slew of new corporate earnings.

The advancement in COVID-19 vaccination efforts and a slowdown in new coronavirus cases across the globe lifted the investor sentiment. However, rising global inflationary expectations rekindled concerns over the possibility of a reflation trade in bonds, which could dampen the sentiment for global equities.

China’s consumer inflation declined in January, according to the country’s National Bureau of Statistics which reported the consumer price index slipped 0.3% from a year ago. The NBS also reported the producer price index rose 0.3% year over year in January.

In US, Nasdaq extended their runs to fresh highs on Tuesday, as strong earnings and economic recovery prospects buoyed investor sentiment. The S&P 500 and Dow ended slightly lower, however, breaking their six-day streak of gains, as investors rotated out of large-cap tech names into other sectors.

Lawmakers in Washington appear to be moving closer to another economic relief bill. House Democrats unveiled the details of a relief proposal that included $1,400 direct checks with faster phase-outs than previous bills.

President Joe Biden on Tuesday met with Treasury Secretary Janet Yellen and the chief executives of some of the country’s largest businesses in the Oval Office to discuss his $1.9 trillion stimulus plan and the outlook for the economy.



Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.

CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

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