Shares turn volatile; Nifty below 14,600

A strong bout of volatility was witnessed in morning trade as key indices swayed between gains and losses. Banks and financial shares tumbled while auto shares advanced. At 10:29 IST, the barometer index, the S&P BSE Sensex, was down 119.57 points or 0.24% at 49,505.11. The Nifty 50 index slipped 27.85 points or 0.19% at 14,562.90.

In broader market, the S&P BSE Mid-Cap index was up 0.3% while the S&P BSE Small-Cap index was up 0.11%.

The market breadth was almost even. On the BSE, 1236 shares rose and 1226 shares fell. A total of 115 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 97,475,579 with 2,088,783 deaths. India reported 1,88,688 active cases of COVID-19 infection and 1,53,032 deaths while 1,02,83,708 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The RBI's January bulletin made a bullish prediction about the state of the economy in 2021. India's GDP, which shrank by double-digits last year, is within striking distance of attaining positive growth, it says, forecasting a quick 'V'-shaped recovery. RBI said Structural changes in the Indian economy and shifts in pattern of India's foreign trade warrant updates to the broad (existing 36-currency-based) indices of nominal/real effective exchange rate (NEER/REER) of the Indian rupee. This base year is shifted from 2004-05 to 2015-16; and the existing basket is expanded from 36 to 40 currencies, with the inclusion of eight new currencies and exclusion of four currencies.

Results Today:

Index heavyweight Reliance Industries (down 0.33%) will announce its quarterly result today.

Yes Bank (down 0.58%), Gland Pharma (up 0.82%), HDFC Life Insurance Company (up 0.18%), SBI Life Insurance Company (down 0.44%), Century Textiles (up 0.69%), Crompton Greaves Consumer Electricals (up 0.56%), Indian Bank (up 3.13%), JSW Steel (up 0.22%), Oberoi Realty (down 0.62%), Symphony (up 1.08%) and V-Mart Retail (up 0.76%) are some of the companies that will announce their quarterly results today.

Buzzing Index:

The Nifty Auto index jumped 3.16% to 10,695.65. It was the leading sectoral index on the NSE.

Motherson Sumi Systems (up 6.19%), Bajaj Auto (up 5.74%), Tata Motors (up 5.11%), Ashok Leyland (up 4.73%), Bosch (up 3.57%), Amara Raja Batteries (up 3.57%), Hero MotoCorp (up 3.52%), TVS Motor Company (up 2.88%) and Escorts (up 1.34%) rallied.

Earnings Impact:

Biocon tumbled 8.49% after the company's consolidated net profit fell 16.9% to Rs 169 crore on 8% rise in revenue from operations to Rs 1,851 crore in Q3 FY21 over Q3 FY20. EBITDA declined by 11% to Rs 427 crore in Q3 December 2020 from Rs 480 crore in Q3 December 2019. EBITDA margins was at 23% as on 31 December 2020 as against 27% as on 31 December 2019. Revenue from Generics was Rs 561 crore (down 3% YoY), revenue from Biosimilars was Rs 769 crore (up 11% YoY) and revenue from Research services was Rs 585 crore (up 13% YoY). Meanwhile, Biocon said that Dr. Christiane Hamacher, has stepped down as the managing director of Biocon Biologics Limited, a subsidiary of the company, and has also ceased to be a member of the board of directors of Biocon Biologics, effective 20 January 2021.

JK Tyres & Industries soared 14.75% after the company's consolidated net profit surged to Rs 230.66 crore in Q3 December 2020 over a net profit of Rs 11.65 crore in Q3 December 2019. Consolidated net sales jumped 25.9% to Rs 2769.28 crore in Q3 FY21 as against Rs 2199.80 crore in Q3 FY20. This was best ever sales for any quarter. EBITDA doubled to Rs 507 crore in Q3 December 2020. Profit before tax was at Rs 342.97 crore in Q3 December 2020 as against Rs 23.31 crore in Q3 December 2019.

Indian Energy Exchange (IEX) gained 0.35% after the company's consolidated net profit grew by 39.5% to Rs 58.14 crore on 42.8% rise in net sales to Rs 85.23 crore in Q3 December 2020 over Q3 December 2019. The company's consolidated profit before tax stood at Rs 75.74 crore in Q3 December 2020, 43.8% higher than Rs 52.66 crore in the same period last year. Consolidated EBITDA stood at Rs 80.5 crore in quarter ended December 2020, rising 41.8% from Rs 63.2 crore in the corresponding period last year. The energy exchange said it delivered the most robust quarterly performance till date.

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