Market Recap for 15 January 2020

Nifty 14,433 ▼ 161 (-1.1%)  Sensex 49,034 ▼ 549 (-1.1%)

After a dismal start, the markets picked up and closed in the green. Of the Nifty50 stocks, 26 saw gains today. Among the sectoral indices, the so-called defensives Nifty Pharma (+0.8%) and Nifty FMCG (+0.7%) were the top gainers, whereas Nifty Metal (-1.0%) and Nifty Media (-0.2%) receded the most.

Top gainers (Nifty50) Tata Motors ▲ 6.6% Bharti Airtel ▲ 3.9% UPL ▲ 2.6% Top losers (Nifty50) Tech Mahindra ▼ 3.9% HCL ▼ 3.7% Wipro ▼ 3.6%

Here are the top stories of the day. PVR gains despite Q3 losses For Q3, multiplex major PVR reported consolidated revenues of ₹320 crore versus last year’s figure of ₹924 crore. Its performance was impacted by the staggered re-opening of cinemas, which are allowed to run at just 50% capacity. The company suffered a net loss of ₹49 crore versus a net profit of ₹36 crore last year. However, the figure is better than the street's estimated loss of ₹213 crore. The company has successfully negotiated its rental and maintenance costs by 80% for the first nine months of FY21, citing challenges due to the pandemic. The stock gained 2.6% in an otherwise weak market.

IDFC First enters the credit card business While most banking stocks were reeling under selling pressure today, shares of IDFC First Bank gained 4.5%. The bank is entering the credit card business and will levy interest rates ranging between 9% and 36%, which is being seen as disruptive. Generally, credit card players levy interest in the range of 34-40% on an annualised basis. IDFC First Bank aims to onboard two lakh customers by March 2021. Meanwhile, shares of SBI Cards (-0.2%) were largely unaffected by the development.

Tata Steel Long surges on Q3 results Shares of Tata Steel Long Products were locked in the 20% upper circuit today. The speciality steel maker reported 36.5% YoY growth in its consolidated revenues for Q3. From a ₹112 crore loss in Q3 last year, it has turned around with a net profit of ₹304 crore due to high sales growth and better cost controls.

Gail announces buyback and interim dividend

• The state-owned gas distribution company will buy back 6.97 crore shares—2.5% of the total paid-up equity—at ₹150 per share, a 7.7% premium over today’s closing price.
• An interim dividend of ₹2.5 per share has also been announced alongside the buyback. The company has fixed 28 January as the record date for the buyback and dividend. Meanwhile, the stock declined 3.3% today.