"Buy 2, get 3" is the word from <keyword id="545117" type="COMPANY" weightage="20" keywordseo="Kotak-Institutional">Kotak Institutional</keyword> Equities as it reckons that the sharp correction in <keyword id="45442" type="COMPANY" weightage="20" keywordseo="Reliance-Industries-Limited">Reliance Industries Limited</keyword> (RIL) amid market upheaval offers an excellent opportunity to buy the stock, with the stock pricing in only two out of the three large and robust business segments. According to a research by Kotak Institutional Equities, the market's knee-jerk reaction on lower-oil-price-led-concerns on the transaction with <keyword id="152170" type="COMPANY" weightage="20" keywordseo="Saudi-Aramco">Saudi Aramco</keyword> seems unfounded, with strategic downstream access becoming more crucial for latter; delays possible in payout. <div type="Article" hostid="261" msid="75658518" title="Mukesh Ambani’s Reliance Industries sets May 14 as record date for ₹53,125 crore rights issue" mstype="2" mssubtype="0"></div> Higher crude <keyword id="112217" type="PERSON" weightage="20" keywordseo="Discounts">discounts</keyword>, weaker Rupee and potential hike in ARPUs may mitigate lower downstream margins, it said. The report notes that the sharp correction to pre-AGM levels ignores several positive developments since then. "We believe the sharp 29% correction in RIL over the past three months presents an opportunity to BUY as the stock has adequately factored weakness in downstream margins and ruled out deleveraging post market's knee-jerk reaction on lower-oil-price-led-concerns on the O2C transaction with Saudi Aramco, while ignoring the favorable developments in telecom business", it said. The stock has come back to pre-AGM levels wherein the leverage-related concerns were high, capex run-rate was elevated and visibility of any improvement in telecom economics was not imminent. Since then, the report says RIL has benefited from meaningful hike in telecom tariffs amid weaker balance sheet of competition post SC judgment on AGR, commencement of FCF generation with OCF exceeding a declining quarterly capex in 3QFY20, cut in corporate tax rates and sustained growth in retail business; lower downstream margins has been the only meaningful negative development, partly mitigated by a weaker rupee. On the Aramco deal, the report says that downstream access is more crucial for Saudi Aramco, even as delays cannot be ruled out. "We are surprised by the market's knee-jerk reaction in effectively ruling out RIL's targeted deleveraging exercise post a sharp fall in crude oil prices, which may have raised some concerns on proposed stake sale in O2C business to Saudi Aramco", it added. "In our view, the strategic access to downstream capacity has become more crucial for Saudi Aramco post the recent developments in oil markets, wherein it has increased discounts on its crude to gain market share after OPEC plus discord on required production cuts", it added. Aramco's ability to acquire inorganic access is no lesser given its strong balance sheet and falling global yields, notwithstanding lower profits and cashflows in the near term. "We do not rule out delays and possibility of staggered payout like Aramco's recent acquisition of SABIC. Lest it is necessary, RIL can consider divesting stake in telecom and retail businesses through strategic sale and/or IPO to deleverage its balance sheet", according to the report. A supply-led-correction in crude price is generally a positive for downstream conversion margins, given its implication in the form of higher crude discounts as well as light-heavy differentials amid surplus supplies, lower fuel and loss in value terms and possible cushion to the persisting weakness in downstream demand. "These benefits for RIL outweigh negative impact from lower margins on 3-4 million tons of gas-based petchem production and higher, albeit immaterial, loss from the US shale business. The recent weakness in Rupee against US Dollar may also mitigate earnings downside from ongoing weakness in downstream margins", the report said. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/reliance-jios-2-23-stake-sale-to-vista-means-its-raised-7-95-billion-in-under-three-weeks/articleshow/75615697.cms" data-type="tilCustomLink">Reliance Jio’s 2.23% stake sale to Vista means its raised $7.95 billion in under three weeks</a> <a href="https://www.businessinsider.in/stock-market/news/heres-how-reliance-industries-right-issue-may-affect-the-share-price/articleshow/75517495.cms" data-type="tilCustomLink">Here's how Reliance Industries right issue may affect the share price</a>

'Buy 2, Get 3', sharp correction in RIL is an opportunity to buy: Kotak Institutional Equities

<ul><li>The 30-share index was trading 0.86% higher, and the Nifty50 rose 92.25 points at 9:50 am.</li><li>These were the top losers and gainers in the Nifty pack. </li><li>These are the top stocks that are buzzing in trade today.</li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </li></ul>Indian stock market index Sensex surged over 300 points in early trade on Wednesday, tracking gains in index-heavyweights Reliance Industries, Infosys and HDFC Bank amid positive domestic and global cues. The 30-share index was trading 0.86% higher, and the Nifty50 rose 92.25 points at 9:50 am. These were the top losers and gainers in the Nifty pack: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top Nifty Gainers </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top Nifty Losers </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bharti Airtel </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">RIL </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Steel </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dr. Reddy's Laboratories </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JSW Steel </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Britannia </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ITC </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndusInd Bank </td></tr></tbody></table>*as of September 23, 10:00 am These are the top stocks that are buzzing in trade today. RIL shares gain 2% The shares of Mukesh Ambani owned RIL gained 2% after it secured <a href="https://www.businessinsider.in/business/news/mukesh-ambani-reliance-retail-gets-its-second-investment-in-two-weeks-kkr-invests-5550-crore/articleshow/78267281.cms">₹5,550 crore investment from American PE firm KKR</a>. With this investment, KKR will take up a 1.28% stake in Ambani’s retail venture. Bharti Airtel and Vodafone Idea shares dip Bharti Airtel and Vodafone Idea down shares were trading in red in an otherwise firm market. Bharti Airtel was down 4%, and Vodafone Idea lost 5% after the government informed the parliament that Telecom operators, including Bharti Airtel and Vodafone Idea, have to pay 10% AGR dues demanded by the Department of Telecommunications (DoT) by March 31. Also, Ambani-owned Jio unveiled its JioPostpaid Plus plans in a bid to lure more customers. The company will offer subscriptions to Netflix, Amazon Prime and Disney + Hotstar with a monthly tariff from ₹399 to ₹1,499 with different benefits. Hindustan Construction Company (HCC) shares trade 7% higher The shares of Hindustan Construction Company was trading 7% higher after the company said it had completed the sale of Farakka-Raiganj Highways to Cube Highways and Infrastructure II Pte, at an enterprise value of ₹1,508 crore. Sterling and Wilson Solar leaps 18%, TCS down 2% The shares of Shapoorji Pallonji subsidiary Sterling and Wilson Solar gained 18% after the SP group told the SC that a separation from the Tata Group is necessary due to the potential impact this continuing litigation could have on the livelihoods and the economy. Excluding TCS, the last quarter losses of all the listed group companies of approximately ₹14,000 crore have caused great concern, SP Group has said. TCS and Tata Steel also lost nearly 2% after this during the early trade hours. Future Enterprises down 3% The shares of Kishore Biyani owned Future Enterprises lost 3% after it defaulted again on interest payments of ₹15.86 crore for its non-convertible debentures. With this, the other Future Group stocks slumped too— Future Retail down 4%, Future Lifestyle Fashions down 3%, and others were in the red as well. SEE ALSO:<a href="https://www.businessinsider.in/business/corporates/news/hindustan-unilever-chairman-is-urging-the-government-to-spend-more-to-boost-consumption/articleshow/78267444.cms" data-type="tilCustomLink"> Data shows why HUL Chairman is urging the government to spend more to boost consumption</a> <a href="https://www.businessinsider.in/india/news/your-unconfirmed-train-ticket-may-now-get-you-a-plane-ride/articleshow/78267879.cms" data-type="tilCustomLink">Your unconfirmed train ticket may now get you a plane ride</a>

Top stock movers — RIL, TCS, Sterling and Wilson Solar, Tata Steel, Airtel, Vodafone Idea and more

Mumbai, Jan 17 () Market gauges Sensex and Nifty gave up early gains to close on a flat note on Friday as investors moved to the sidelines amid concerns that the Supreme Court ruling on telecom AGR issue might further aggravate stressed assets problem in the banking sector.
 At the closing bell, the BSE benchmark Sensex was up 12.81 points or 0.03 per cent at 41,945.37. The index also marked its new all-time high of 42,063.93 in intraday trading, before surrendering some of its gains.
 The broader Nifty, however, settled 3.15 points or 0.025 per cent lower at 12,352.35. The NSE barometer too touched its life-time intraday peak of 12,385.45 in early deals before losing momentum.
 During the week, the Sensex advanced 345.65 points or 0.83 per cent; while the Nifty rose 95.55 points or 0.77 per cent.
 In a session marked by high volatility, gains in Reliance Industries offset losses in other heavyweights HDFC, ICICI Bank and TCS.
 On the Sensex chart, Bharti Airtel was the top gainer, rallying 5.47 per cent, after experts said the Supreme Court's rejection of a review of its order that put Rs 1.47 lakh crore liability of past dues on telcos, will weaken Vodafone Idea's ability to compete in the Indian market; in turn, providing an opportunity for Bharti Airtel and Reliance Jio to gain market share.
 Shares of Vodafone Idea plunged 25.21 per cent.
 Ahead of their quarterly earnings, Reliance Industries and HCL Tech advanced up to 2.79 per cent, while TCS fell 0.79 per cent.
 Heavyweight HDFC dropped 1.23 per cent.
 In percentage terms, IndusInd Bank, SBI, HDFC, ICICI Bank and L&amp;T were among the top losers.
 On the contrary, Bharti Airtel, Reliance, Sun Pharma, HCL Tech and Maruti Suzuki emerged as major gainers.
 Sectorally, BSE bankex, metal, finance, capital goods and IT indices fell up to 0.78 per cent. While energy, telecom, healthcare, consumer durables, power and auto indices rose up to 1.79 per cent.
 In the broader market, BSE midcap and smallcap indices rose up to 0.54 per cent.
 "As anticipated mid and small caps are outpacing the broader market... Main indices are impacted by Supreme Court verdict on AGR, having an effect on telecom and banking sectors which are already facing NPA problem. The pre-budget rally has been very solid on a month-on-month basis, market may consolidate in the short-term and take cues from the actual budget and on-going results," Vinod Nair, Head of Research, Geojit Financial Services, said.
 The Supreme Court on Thursday dismissed review petitions filed by telecom companies against its October 24, 2019 order that asked for inclusion of non-telecom revenues for calculating statutory dues such as licence fee and spectrum usage charge.
 Dues, which total to Rs 1.47 lakh crore for 15 telecom companies including Airtel and Vodafone Idea, as per the October order, have to be paid by January 23.
 According to traders, domestic investors are awaiting directional cues from key corporate results for cues amid concerns over higher bank non-performing assets and a spike in retail inflation.
 Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended higher. European markets also started on a positive note.
 Brent crude oil futures rose 0.36 per cent to USD 64.86 per barrel.
 The Indian rupee depreciated 15 paise to 71.08 per US dollar.
 "Global markets witnessed a strong rally as easing trade tensions and promising economic data buoyed the sentiments. Indian markets too ended the week with strong gains especially in midcaps and small caps. Midcap and small caps have significantly outperformed the Nifty... We are seeing strong traction in the broader market with revived risk appetite among investors ahead of Budget," Hemang Kapasi, Portfolio Manager - Equity Investment Products, Sanctum Wealth Management, said. ANS MKJ

Market ends flat; banks slide on NPA concerns after top court's AGR ruling

(Eds: Adding details) New Delhi, Feb 4 () Telecom operator Bharti Airtel on Tuesday posted a consolidated loss of Rs 1,035 crore for the three months ended December 31, 2019, as the AGR-hit telco provisioned for interest component of its statutory dues.December Q3 scorecard marked the third straight quarter of losses for the company, which had logged a net profit of Rs 86 crore a year ago. The company also said the previously reported material uncertainty on the group's ability to continue as a going concern "no longer exists" after the recent Rs 21,502 crore fund raising by it."The net exceptional charge of Rs 10,500 million (Rs 1,050 crore) during the quarter ended December 31, 2019 comprises of a charge on account of interest on the provision of license fee and spectrum usage charges recorded in the quarter ended September 30, 2019 of Rs 10,481 million pending disposal of the modification application before the Supreme Court," Airtel said.Other elements included accelerated depreciation on 3G network equipment/operating costs on network re-farming and up-gradation programme, it added.The Supreme Court, in October last year, had upheld the government's position on including revenue from non-core businesses in calculating the annual AGR of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.Bharti Airtel's liabilities added up to nearly Rs 35,586 crore, including licence fee and spectrum usage charge dues.It may be recalled that for September quarter, Airtel had posted a staggering Rs 23,045 crore net loss, after provisioning of Rs 28,450 crore on account of Supreme Court ruling on past dues.For just ended December quarter, Airtel's consolidated revenues came in at Rs 21,947 crore, up 8.5 per cent over the same period previous year. The India revenues for Q3 FY20 stood at Rs 15,797 crore, 7 per cent higher over same period previous year, while Africa revenues were up 14.2 per cent.Shares of Airtel closed 1.72 per cent higher on the BSE on Tuesday at Rs 519.10 apiece. The company announced results after the close of the market hours.The company said that consolidated mobile data traffic on network grew 73 per cent year-on-year. The company logged the "highest ever" 4G subscriber additions during the quarter at about 21 million, and benefited from up to 50 per cent tariff hike - call and data charges - it had announced in early December.Its average realisation from subscribers (Average Revenue Per User or ARPU) improved to Rs 135 in December from Rs 128 in the previous sequential quarter.Bharti Airtel CEO - India and South Asia, Gopal Vittal said that while the tariff revision undertaken in December 2019 is a welcome step towards repairing the financial health of the industry, the company believes that tariffs must go up further for enabling the industry to invest in emerging technologies.In a statement, Airtel said: "Mobile revenues have witnessed a year-on-year growth of 9.6 per cent led by a strong focus on quality customers, up-trading and in some part benefitted by the recent tariff actions, although the full impact of the tariff actions is yet to be seen".Mobile 4G data customers increased by about 60.6 per cent to 123.8 million as compared to corresponding quarter last year.The consolidated net loss before exceptional items for December quarter stood at Rs 1,080 crore, while the loss after exceptional items for the quarter was Rs 1,035 crore.The company noted that in the previous quarter, the group had recorded as a liability/provision of Rs 34,260 crore as on September 30, 2019 on account of the Supreme Court verdict on Adjusted Gross Revenue (AGR) dues."These judgements/orders have significant financial implications on the Group," Airtel said, adding that the telecom operators have filed an application for modification petition in the apex court, which is pending for disposal.Airtel said that it has recently raised Rs 21,502 crore through a combination of fresh equity issuance via qualified institutional placement and issue of convertible bonds and post the fund raising, "the management has concluded that the previously reported material uncertainty on the group's ability to continue as a going concern no longer exists".As many as 15 entities owe the government Rs 1.47 lakh crore -- Rs 92,642 crore in unpaid licence fee and another Rs 55,054 crore in outstanding spectrum usage charges.Vodafone Idea -- which is staring at unpaid statutory dues of Rs 53,038 crore, including Rs 24,729 crore of spectrum dues and Rs 28,309 crore in licence fee -- has already warned of shutdown if no relief is given.Most of the remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt telecom companies.Reliance Jio, last month, has reported 62.5 per cent jump in its net profit for the December quarter at Rs 1,350 crore. PRS MBI BAL

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'Buy 2, Get 3', sharp correction in RIL is an opportunity to buy: Kotak Institutional Equities

IANS

Top stock movers — RIL, TCS, Sterling and Wilson Solar, Tata Steel, Airtel, Vodafone Idea and more

Navdeep Yadav

Market ends flat; banks slide on NPA concerns after top court's AGR ruling

PTI

Airtel Q3 loss at Rs 1,035 crore after interest provisioning on AGR dues

PTI