Market Live: Nifty opens flat ahead of FO expiry; Sensex consolidates; SBI dips

10:16 am Buzzing: Shares of Quess Corp, Pidilite Industries and Liberty Shoes rose 2-6 percent in morning on the back of robust Q3 (Oct-Dec) numbers.

Quess Corp has recorded 107 percent rise in its Q3 net profit at Rs 69.8 crore versus Rs 33.7 crore in a year ago period. Revenue was up 48 percent at Rs 1,584 crore versus Rs 1,067 crore. EBITDA increased by 54 percent at Rs 91 crore, while OPM was flat at 5.7 percent. The company’s other income doubled to Rs 12 crore.

Pidilite Industries’ Q3 net profit was up 18 percent at Rs 239.1 crore versus Rs 202.6 crore. Revenue was up 15.6 percent at Rs 1,542.9 crore versus Rs
1,334 crore. EBITDA was up 29.1 percent at Rs 370.2 crore and EBITDA margin rose 250 bps at 24 percent.

Liberty Shoes has registered 136 percent jump in its Q3 net profit at Rs 2.6 crore and revenue was up 27 percent at Rs 163 crore. EBITDA was flat at Rs 11.4 crore and OPM was down 200 bps at 6.9 percent.

Pidilite Industries, Quess Corp and Liberty Shoes rose 36 percent, 64 percent and 53 percent respectively in the last one year.

10:10 am Crude Oil Update: Oil prices hit their highest since December, 2014, pushed up after US crude inventories posted a 10th straight week of declines and as the dollar continued to weaken.

Brent crude futures, the international benchmark for oil prices, were trading at USD 70.99 a barrel, their highest level since early December, 2014, up 0.67 percent from previous settlement.

USWest Texas Intermediate (WTI) crude futures climbed to USD 66.29 per barrel, also the highest level since early December, 2014, up 1.04 percent from previous close.

Here are the top headlines at 10:00 am from Moneycontrol News’ Anchal Pathak

10:00 am Market Check: Benchmark indices continue to be rangebound in morning, with the Nifty trading in a range of 11,050-11,100 levels ahead of expiry of January futures & options contracts.

The 30-share BSE Sensex was down 27.75 points at 36,133.89 and the 50-share NSE Nifty fell 3.10 points to 11,082.90.

Nifty Midcap index gained 0.4 percent. About 1,140 shares advanced against 942 declining shares on the BSE.

9:52 am Rupee Trade: The rupee gained 19 paise to 63.49 against the US dollar in morning today on increased selling of the American currency by exporters and banks.

Besides sustained foreign fund inflows, stock markets opening with gains and the dollar weakening against major currencies overseas also supported the domestic unit, forex dealers said.

The dollar was weak following the US Treasury Secretary hailing a ‘weak dollar’ at the World Economic Forum in Davos.

Yesterday, the rupee had strengthened by 9 paise to close at a new one-week high 63.69.

9:45 am Market Outlook: The year 2017 belongs to high beta stocks which remained in limelight throughout the year but the year 2018 is likely to belong to quality or largecaps stocks, that’s the verdict coming from experts.

The valuations of Indian markets look stretch but after a strong rally seen in the small and midcaps, analysts’ advise experts to either book profits partially or switch part of their holding to largecaps. A rotation trade already started witnessing just last week.

“For Midcap and small cap stocks it is a sell on rallies as their relative strength has been weakening in favour of large caps. In October-January we did see meaningful outperformance of midcaps over large caps but that changed in the last 10 days,” Rohit Srivastava, Fund Manager – PMS, Sharekhan told Moneycontrol.

“After 10-Jan-2018, we have seen midcaps fall and large caps rise. This change was quite significant and should be noted in one’s asset allocation,” he said.

9:28 am Plant Expansion: Board of Gallant Ispat approved plan to expand capacity of its various plants at an estimated cost of Rs 510 crore, the company said.

The decision to further expand capacity of various plants was taken at a meeting of the Board of Directors today, Gallant Ispat said in a BSE filing.

As per the plan, the company will expand its captive power plants, steel melting shop, DRI (directly reduced iron) and pellets plant.

“A total of approximately Rs 510 crore of capital expenditure has been projected for the…expansion,” the company said in the filing.

9:21 am Future Group Outlook: The Future Group is expecting its retail business to reach Rs 40,000 crore in 2018-19.

“We are looking at retail business of Rs 40,000 crore by next year; out of which Hyderabad will contribute Rs 4,000 crore,” Future Group CEO Kishore Biyani told reporters here.

“We will touch Rs 40,000 crore by next year as a Group. Future Group. Currently, this year, we should be Rs 30,000 crore,” he said.

Biyani was speaking after launching its ‘Golden Harvest’ Sona Masoori, a fine rice variety.

Golden Harvest is a Rs 1200 crore brand and has products in categories like staples, spices and dry fruits.

9:15 am Market Check: Equity benchmarks continued to consolidate in opening on Thursday, ahead of expiry of January futures and options contracts.

The 30-share BSE Sensex was down 12.03 points at 36,149.61 and the 50-share NSE Nifty fell 4.30 points to 11,081.70.

The market breadth was balanced as about 683 shares declined against 602 advancing shares on the BSE.

After PSU banks’ recapitalisation amount announcement, SBI, PNB and Bank of Baroda were down 1-3 percent. However, IDBI Bank, Bank of India, UCO Bank, Central Bank of India, IOB, Union Bank, OBC, United Bank, Syndicate Bank, Bank of Maharashtra, Dena Bank and Corporation Bank rallied 2-10 percent.

L&T Infotech, Bharat Bijlee, Everest Industries and KEI Industries rallied post earnings. Biocon lost 4.5 percent after bad earnings.