Nifty50: 15,314 ▲ 151 (+1.0%)
Sensex: 52,154 ▲ 609 (+1.1%)
Following a gap-up opening, the markets stayed in the green throughout the day. The last hour of trading witnessed volatility, but buying interest trumped the selling pressure, and 28 of the Nifty50 stocks closed with gains.
Financial sector stocks traded strong and as a result, the Nifty Bank (+3.3%) and Nifty Financial Services (+2.8%) indices were the top gainers. Meanwhile, Nifty Metal (-0.4%) and Nifty IT (-0.3%) were the top losers.
| Top gainers | Today's change |
| Axis Bank | ▲ 6.2% |
| ICICI Bank | ▲ 4.1% |
| SBI | ▲ 4.0% |
| Top losers | Today's change |
| SBI Life | ▼ 2.2% |
| HDFC Life | ▼ 2.0% |
| Dr Reddy's | ▼ 1.8% |
Here are the top stories of the day.
Amara Raja’s shares down despite upbeat Q3
- The maker of Amaron batteries reported an 18% YoY rise in net profit, which stood at ₹193 crore in Q3. Its revenues, too, were up 12% to ₹1,960 crore, marginally lower than street expectations of ₹1,983 crore.
- Growth in auto OEM and aftermarket segments supported the rise in revenues. It also witnessed strong growth in the telecom and commercial UPS segments. The company is planning to set up a 50-megawatt solar plant in Andhra Pradesh at a cost of ₹220 crore. Despite the strong performance, the stock witnessed selling pressure and closed about 6% lower.
Deepak Nitrite at record high after strong quarter
- The Vododara-based chemicals maker reported a 9% YoY growth in revenues to ₹1,240 crore supported by strong revenue performance of its specialty chemicals (up 22% YoY) and phenolics (up 40% YoY) businesses. Its net profit surged to ₹217 crore , up 38% YoY.
- The stock hit a new lifetime high following an impressive Q3, gaining 6.4% today. The stock has returned about 160% in the past one year.
Clariant chemicals declares dividend after profitable Q3
- Speciality chemical maker Clariant reported a profit of ₹13 crore for Q3, compared to ₹3 crore last year. Its revenues grew 7% YoY to ₹202 crore.
- Its management attributed the strong performance to efforts on working capital, cost control and operational productivity. The company has declared an interim dividend of ₹50 per share which translates to a dividend yield of 11%. Its stock surged 14.7% today.
Nureca IPO oversubscribed on opening day
- The ₹100 crore IPO got oversubscribed within the first half of the day. Founded in 2016, Nureca sells home healthcare and wellness products such as blood pressure monitors, oximeters and wheelchairs.
- The price band for the issue is set at ₹396-400, with 35 shares per lot. The issue closes on 17 February 2020. Read our blog to know more about the IPO. You can apply to the IPO with Upstox here.
- The public issue of Railtel opens tomorrow. To know more about the IPO, read our blog here.
Closing bell
The financial stocks led the market rally today and comprised eight out of the top 10 Nifty50 gainers. Typically, financial stocks are more sensitive to various risks than other sectors. Given that the Bank Nifty has risen 22% this month and is trading at its lifetime high, the market doesn’t seem to be seeing any major risks, at least in the near term. Further, global cues also supported today’s rally. The only spanner in the works seems to be the unabated rise in crude oil prices, which could have a spiral effect on inflation.
Good to know
What is book value?
A company's book value refers to its total physical assets (excluding goodwill, etc.) minus liabilities, such as debt. It is the amount the shareholders will receive in case the company is liquidated. A company's book value per share might be higher or lower than its market value per share.
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Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.