MARKET WRAP: Stocks roiled on coronavirus fears, Sensex plunges 807 pts

Topics Markets | MARKET WRAP

Fears that the coronavirus outbreak in China will grow into a pandemic with disruptive and deadly consequences for countries across the globe spooked equity market on Monday. The virus, that has killed 2,442 people in China, has spread to 28 other countries and territories, with a death toll of around two dozen.

As a result, the S&P BSE Sensex plunged 807 points or nearly 2 per cent to settle at 40,363 with alll the 30 components of the index ending in the red. Tata Steel (down over 6 per cent) bled the most, followed by ONGC (down nearly 5 per cent) and Maruti (down over 4 per cent).

On the NSE, the benchmark Nifty lost 251 points or over 2 per cent to end the session at 11,829 levels. 

Volatility index India VIX jumped 26 per cent to 17.21 levels.

Among sectoral indices, Nifty Metal cracked the most - over 5 per cent to 2,472. Pharma and PSU banks were next on the list. 

In the broader market, Nifty Midcap 100 ended at 17,764, down 346 points or around 2 per cent and the Nifty SmallCap 100 index skid around 2 per cent to 6,044.

GLOBAL MARKETS

Global shares and oil slid on Monday while safe-haven gold surged as the spread of the coronavirus outside China darkened the outlook for world growth with infections and deaths rising in South Korea, Italy and the Middle East. 

US stock futures were dumped with E-minis for the S&P500 falling 1.4 per cent while Nikkei futures stumbled 2.7 per cent. EuroStoxx 50 futures declined about 2 per cent while futures for London’s FTSE skidded 1.3 per cent. Asian share indexes were also a sea of red.

In commodities, oil prices tumbled by more than 3 per cent. 

(With inputs from Reuters)


4:04 PM IST Demand for safe-haven assets spiked as fresh coronavirus cases in South Korea and Italy indicated that business impact could be higher than thought earlier. The Trump-Modi meet is not providing clues to the market regarding trade deal but market is hoping for some hint in the future. 

3:43 PM IST

3:42 PM IST

3:38 PM IST The S&P BSE Sensex lost 807 points or 2 per cent to end at 40,363 while NSE's Nifty50 ended at 11,839, down 242 points or 2 per cent. 

3:23 PM IST The stock was trading lower for the fifth straight day. In the past one month, Sobha has underperformed the market by falling 27 per cent, as compared to 1 per cent decline in the S&P BSE Sensex. The stock was quoting lowest level since March 21, 2017. “The real estate division reported higher outflows in relation to the collections from customers due to the finishing costs in recently completed projects, higher outflows towards construction of land-owner share of built-up area in a project, and lower-than anticipated collections from certain newly-launched projects,” ICRA said in a rating rationale. READ MORE  

3:01 PM IST

2:54 PM IST >> Sensex tanks 700 points, or 1.72 per cent, at 40,463.58 >> Nifty50 at 11,868, down 212 points or 1.76 per cent.

2:46 PM IST

2:44 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(%) BASF INDIA 838.20 829.00 0.07 CANARA BANK 167.50 167.45 -3.04 FUTURE CONSUMER 18.90 18.85 -8.70 FUTURE LIFESTYLE 375.30 364.00 -1.38 GAYATRI PROJECTS 24.05 24.05 -4.94 » More on 52 Week Low

2:43 PM IST

2:32 PM IST

LIVE UPDATES

MARKET COMMENT | Vinod Nair, Head of Research, Geojit Financial Services

Demand for safe-haven assets spiked as fresh coronavirus cases in South Korea and Italy indicated that business impact could be higher than thought earlier. The Trump-Modi meet is not providing clues to the market regarding trade deal but market is hoping for some hint in the future. 

SECTOR WATCH | Sectoral performance on the NSE


MARKET AT CLOSE | All 30 constituents of S&P BSE Sensex end in the red


CLOSING BELL

The S&P BSE Sensex lost 807 points or 2 per cent to end at 40,363 while NSE's Nifty50 ended at 11,839, down 242 points or 2 per cent. 

Sobha nears 3-year low after ICRA revises outlook from stable to negative

The stock was trading lower for the fifth straight day. In the past one month, Sobha has underperformed the market by falling 27 per cent, as compared to 1 per cent decline in the S&P BSE Sensex. The stock was quoting lowest level since March 21, 2017. “The real estate division reported higher outflows in relation to the collections from customers due to the finishing costs in recently completed projects, higher outflows towards construction of land-owner share of built-up area in a project, and lower-than anticipated collections from certain newly-launched projects,” ICRA said in a rating rationale. READ MORE  


SECTOR WATCH:: Nifty Bank index tanks over 1%


Market check

>> Sensex tanks 700 points, or 1.72 per cent, at 40,463.58

>> Nifty50 at 11,868, down 212 points or 1.76 per cent.

Heatmap: S&P BSE Sensex


BSE500 stocks that hit 52-week low today

COMPANY PRICE(rs) 52 WK LOW CHG(%)
BASF INDIA 838.20 829.00 0.07
CANARA BANK 167.50 167.45 -3.04
FUTURE CONSUMER 18.90 18.85 -8.70
FUTURE LIFESTYLE 375.30 364.00 -1.38
GAYATRI PROJECTS 24.05 24.05 -4.94
» More on 52 Week Low

India VIX surges 21%


Market check | Free fall in markets


Market check


Global Markets check

Global shares and oil slid on Monday while safe-haven gold surged as the spread of the coronavirus outside China darkened the outlook for world growth with infections and deaths rising in South Korea, Italy and the Middle East.

US stock futures were dumped with E-minis for the S&P500 falling 1.4 per cent while Nikkei futures stumbled 2.7 per cent. EuroStoxx 50 futures declined about 2 per cent while futures for London’s FTSE skidded 1.3 per cent.
 
Asian share indexes were also a sea of red. Australia's benchmark index slid 2.3 per cent while New Zealand was about 1.8 per cent lower. South Korea's KOSPI index fell about 3.4 per cent. Chinese shares opened down with the blue-chip CSI300 index easing 0.5 per cent.
 
That left MSCI’s broadest index of Asia-Pacific shares outside Japan off 1.9 per cent at its lowest since early February. Japanese markets were closed for a public holiday.

In commodities, oil prices slid as investors fretted about crude demand being pinched by the impact of the coronavirus outbreak, while leading producers appeared to be in no rush to curb output. Brent crude slumped 2.4 per cent, or $1.4, to $57.09 a barrel.

Market check


Rupee check


NEWS ALERT | To discuss a major trade deal with India: Donald Trump

Photo: ANI

NEWS ALERT | To sign a $3 bn deal for Helicopters for Indian Air Force: US President Donald Trump

- US to help India with their Air Defence System

MARKET CHECK | Top 5 losers on the BSE at this hour


There's much to gain from friendship between Trump and Modi: Nikki Haley

Former White House official Peter Lavoy said that the Modi-Trump summit "will be consequential" because security ties will be advanced, Kashmir issue will be deferred, Afghanistan will be managed, trade differences will be mitigated, energy ties will be enhanced and defence deals will happen. READ MORE

Nifty sectoral indices at this hour


NEWS ALERT | America is India's friend, and will always remain faithful: Donald Trump in Ahmedabad

MARKET UPDATE:: Sensex extends fall, down 500 pts now


GLOBAL MARKET UPDATE:: Europe opens lower


SECTOR WATCH:: Nifty Metal index extends fall


Contribution to S&P BSE Sensex's fall today


India will become premier digital society: Mukesh Ambani at CEO Summit

Reliance Industries Chairman Mukesh Ambani on Monday said India is at the cusp of becoming a premier digital society, and will be among the top three economies of the world. In conversation Microsoft Chief Executive Satya Nadella at the Future Decoded CEO Summit here, he said the big change driving this transformation is the deepening of mobile networks which are working at a much faster pace than before. READ MORE

MARKET CHECK


BROKERAGE RADAR | ICICI Securities on Aurobindo Pharma

Growing US scrutiny is the new normal, for a company like Aurobindo, which owns the largest infrastructure of US focused plants, the stakes are even higher. In this backdrop, we expect this volatility to persist for some more time until the important plants come clear out of scrutiny. Another key event to watch is the Sandoz acquisition, post which the contribution from the US will increase to ~58%, highest vis-à-vis most domestic pharma companies. We maintain HOLD and arrive at a target price of Rs 555 (9x FY22E EPS of Rs 61.7).

Hero MotoCorp shares slip to over 5-year low, tumble 12% in February

Shares of Hero MotoCorp (HMCL) slipped 2 per cent intra-day to hit an over five-year low of Rs 2,192 on the BSE on Monday amid concerns that the volume weakness might continue in the next 2-3 quarters due to inventory correction with dealers and notable price increases as a result of the BSVI transition. The two-wheeler major's stock was trading at its lowest level since May 2014. READ MORE

SECTOR WATCH:: Telecom stocks under pressure

COMPANY LATEST(rs) CHG(%) VOLUME
VODAFONE IDEA 4.17 -5.23 51959563
BHARTI AIRTEL 536.40 -1.67 89638
TEJAS NETWORKS 66.40 -1.19 4557
» More

NEWS ALERT | Mobile networks in India are better or at par with anybody else in the world: Ambani

-- Privileged to play a very small role in digital India with the launch of Jio: Ambani

-- Fundamentally, India's progress has happened on the back of technology

-- In the early days, TCS, Infosys drove the tech reforms

Biocon hits 52-wk high as Malaysian unit gets 3 observations from US FDA

The stock of India’s biggest biotechnology company was trading higher for the third straight day, and has surpassed it's previous high of Rs 321 touched on February 15, 2019 in the intra-day trade. It hit an all-time high of Rs 359 on September 26, 2018. READ MORE

NEWS ALERT | Very excited about our partnership with Microsoft: Reliance Industries chairman Mukesh Ambani

-- Partnership with Microsoft will be the defining partnership of the decade: Ambani

Chart Check: How to trade paint stocks amid decline in crude oil prices

Brent Crude fell over two per cent to $57.04 per barrel on Monday, as the rapid spread of the coronavirus in several countries outside China left investors fretting about a hit to demand. Back home, equity benchmark indices opened lower with a cut of 1 per cent. The overall sentiment may lose the positive grip if the trend continues on weaker side. However, the paint companies are showing decent upside over the last few sessions and may continue to do so. READ MORE

MARKET UPDATE:: Broader indices outperform; India VIX up 10%


NEWS ALERT | US President Donald Trump arrives in India

Stocks that hit 52-week high on BSE in a weak market

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
AJANTA PHARMA 1472.00 1485.00 25.95 1.79
BIOCON 320.40 321.00 5.40 1.71
ESSEL PROPACK 199.45 203.60 11.95 6.37
FDC 261.60 269.05 11.60 4.64
GMR INFRA. 26.30 26.55 2.70 11.44
» More on 52 Week High

Shilpa Medicare hits fresh 52-week high; stock zooms 89% in a month

Shares of Shilpa Medicare were locked in 5 per cent upper circuit at Rs 491, also its fresh 52-week high, on the BSE on Monday in an otherwise weak market. In the past one month, the pharmaceutical company's stock has zoomed 89 per cent after reporting a strong set of numbers for the quarter ended December 2019 (Q3FY20). In comparison, the S&P BSE Sensex slipped 2 per cent during the period. READ MORE

Mid-, small-cap indices beat Nifty50 despite poorer earnings show

The mid- and small-cap indices are racing ahead of the benchmarks this year. However, their earnings scorecard for the December quarter has been much worse than the Nifty’s. According to an analysis by ICICI Securities, nearly half the Nifty50 companies’ net profit has exceeded consensus estimates. READ MORE

MARKET CHECK | GMR Infra extends gains


BROKERAGE RADAR | Emkay Global on Automobile sector

We reiterate our OW stance on the auto sector. We have upgraded Escorts to Buy from Hold, on a likely recovery in Tractor sales cycle, market share gains, robust growth in the Railways segment and reasonable valuations. Our top Buys and OWs in sector EAP are Maruti Suzuki India, Ashok Leyland, Tata Motors and Escorts. TVS Motor is our top Sell-rated stock, and we are UW on it in EAP

Crude oil prices likely to face resistance at $58/bbl on coronavirus fears

The onset of the Coronavirus had pushed crude oil prices in a bear phase this year. Typically, a bear market is defined as a fall of 20 per cent or more from the high. The WTI Crude fell from a high of $65.65 a barrel in January fell to a low of $49.31 on February 4, translating into a fall of 24.88 per cent. Crude oil prices declined as global investors and traders weighed the effects of spreading coronavirus, which has dampened demand for oil from China, world's second top consumer. READ MORE
.

BROKERAGE RADAR | Prabhudas Lilladher on Aurobindo Pharma

We downgrade Aurobindo Pharma to ‘Sell’ (earlier Hold) and retain TP of Rs 525 (PE 10x of FY22E). We believe that complete resolution of Unit –1, 4, 7, 9, 11 would be a difficult to achieve in near term. Being a large API plant, the Unit-11 is key for maintaining lower COGS for many current and future ANDAs of highly
genericized molecules. The Unit-4 and Unit-7 are the two largest US contributors in injectable and oral drugs respectively. Hence, the high uncertainty over the three key plants to impact valuation of ARBP till positive outcome from its remediation works are achieved.

Max Financial extends rally on Axis Bank deal, up 15% in two days

The stock has surged 15 per cent in the past two trading days. It was trading higher for the fifth straight day and touched its 52-week high level of Rs 598 on Thursday, February 20, 2020.
 
“Axis Bank, Max Financial Services and its subsidiary Max Life Insurance Company Limited (Max Life) signed a confidentiality and exclusivity arrangement to explore the possibility of Axis Bank entering into a long-term strategic partnership with Max Life,” Max Financial said in an exchange filing. READ MORE

Metal shares tumble as coronavirus cases jump in South Korea, Italy

Shares of metal companies were under pressure on Monday with the Nifty Metal index falling more than 3 per cent on Monday as international concern about the spread of coronavirus outside China grew. At 09:39 am, the Nifty Metal index -- the top loser among sectoral indices -- was down 3.1 per cent at 2,531 points, as compared to 1.1 per cent decline in the benchmark Nifty50 index. READ MORE

NEWS ALERT | Govt may look at a 3-5 year medium term divestment strategy: sources to CNBC TV18

>> Govt looking at improving CPSE valuation 

>> Sectoral concerns, better communication strategy by CPSEs likely other key areas

>> Govt may also examine Temasek-like models under a medium term strategy

BROKERAGE RADAR | Edelweiss Securities on Ambuja Cement

While Ambuja Cements will benefit from our positive industry view of steady demand outlook, high industry clinker utilisation and benign fuel cost regime, the TP offers limited upside under our valuation framework. Hence, we maintain ‘HOLD’ with revised TP of Rs 234 (Rs 226 earlier) as we roll over valuations to 12x Q2CY21E EV/EBITDA and 50.05% stake in ACC being valued at 30% discount to our fair value estimate.

BROKERAGE RADAR | Edelweiss Securities on Hero MotoCorp

The strong build-up in R&D capabilities by HMCL over a short span of five years is encouraging, not to mention the company’s holistic approach targtting volumes, market share, profitability and customers. However, given intense competition, we await signs of strong execution by HMCL that vindicate it is exploiting the R&D capabilities it has laboriously developed. Maintain ‘HOLD’ with a TP of Rs 2,695.

Bharti Infratel up 10% post DoT nod to Indus Tower merger; Board meet today

Shares of Bharti Infratel surged 10 per cent to Rs 248.7 on the BSE on Monday after the Department of Telecom (DoT) approved the merger of mobile tower company Indus Towers with Bharti Infratel. Besides, the Board is scheduled to meet today to decide the future course of action. At 9:48 am, the stock nearly erased its entire early morning gains and was quoting at Rs 226.75, up 0.29 per cent. READ MORE

BROKERAGE RADAR | Emkay Global on Engineering and Capital Goods

Despite the declining growth visibility and rising challenges on working capital, we have not seen the stocks correcting much in the sector. We believe that continued order inflows and execution disappointment will result in a de-rating of stocks in the sector, and accordingly, we keep our bearish stance on the sector in our sector EAP. We are OW on Cummins and BHEL, while UW on L&T, ABB and Siemens

Aurobindo Pharma slips 17% as USFDA revokes VAI status for Unit-IV

Aurobindo Pharma has received further communication from the US Food and Drug Administration USFDA on its Unit IV injectable plant stating that the inspection is still open and under review. The letter issued on February 19, mentions that the establishment inspection report (EIR) with voluntary action indicated (VAI) classification for the facility was erroneously sent to the company and is being retracted. READ MORE  


GMR Infra jumps 10% as France's Groupe ADP to buy 49% stake in GMR Airports

As part of the terms of transaction, GMR will retain management control over the Airports Business with Groupe ADP having the customary rights and Board representation at GAL and its key subsidiaries. READ MORE  


Momentum Picks by ICICI Securities


Tweak in Companies Act may allow Indian unlisted firms to list abroad

The government is considering an amendment to the Companies Act to allow unlisted Indian companies to list abroad, a senior government official told Business Standard.
 
The Companies Amendment Bill is expected to be tabled in the ongoing Parliament session, with changes including decriminalisation and a reduced compliance burden. READ MORE

GMR Infra gains 5%

>> Competition Commission of India has given approval for the GMR group's proposed 49 percent stake sale in its airport business to France's Groupe ADP.


SpiceJet down 3%


PNB Housing Finance declines on ratings downgrade

>> Crisil has downgraded its long-term rating to CRISIL AA/Stable from AA+/Negative.


Arvind Fashions slips over 2%

>> CARE cuts the long-term rating to 'A-' from A.


Bharti Infratel gains 3%

>> he department of telecommunications (DoT) on Friday approved the merger of two tower companies--Sunil Mittal-led Bharti Infratel Ltd and Indus Towers Ltd, allowing Vodafone Idea Ltd to raise funds by divesting its stake in the latter.


Biocon slips over 1.5%

>>  US FDA issued 3 observations to the company's Malaysia facility.


Vodafone Idea gains over 4%


Aurobindo Pharma hits 10% lower circuit


Sectoral trends at NSE during Opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Market at Open | Nifty below 12,000-mark


First Trade | Sensex begins with a negative tick


Fund pick: Axis Bluechip Fund is a consistent large-cap outperformer

Launched in January 2010, Axis Bluechip Fund featured among the top 30 percentile of the large-cap category in CRISIL Mutual Fund Ranking (CMFR) during the past three quarters ended December 2019. Shreyash Devalkar has been managing the fund since November 2016.
 
He has over 18 years of industry experience. During the past three years, assets under management (AUM) of the scheme increased over five times from Rs 1,943 crore in January 2017 to Rs 10,212 crore in December 2019. READ MORE

Top gainers and losers on S&P BSE Sensex during Pre-open


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens lower at 71.89/$ vs previous close of 71.65 against the US dollar

Stocks to watch: Aurobindo Pharma, Bharti Airtel, Infratel, Vodafone Idea

Aurobindo Pharma: In a surprise development, the US drug regulator FDA revoked the ‘Voluntary Action Initiated’ status issued to Aurobindo Pharma's plant in Hyderabad, days after indicating it might not pursue further regulatory action.
 
Tobacco companies: According to media reports, Health Ministry is mulling to increase the legal age for tobacco consumption from 18 to 21 years as part of its efforts to strengthen the provisions of Cigarettes and Other Tobacco Products Act. READ MORE

Apollo to Fortis: Hospital stocks among safest bets in the healthcare space

Hospitals stood out, even as other segments in the health care space have had a sketchy run on the bourses. Apollo Hospitals, Fortis Healthcare, Narayana Hrudayalaya, and Aster DM have seen robust gains over the past few months and are trading at their near-term highs. READ MORE

NEWS ALERT

Foreigners' interest in India remains intact for now, says Samir Arora

It has been an eventful 2020 for the markets thus far. Provided there are no further shocks — like bankruptcy of Vodafone Idea — the equity markets should again deliver reasonable performance, SAMIR ARORA, founder and fund manager, Helios Capital, tells Puneet Wadhwa. READ FULL INTERVIEW HERE
Samir Arora, founder and fund manager, Helios Capital

Two stocks that Vaishali Parekh of Prabhudas Lilladher is bullish on

BUY HIMATSINGKA SEIDE | CMP: Rs 107.25 | TARGET: Rs 135 - 140 | STOP LOSS: Rs 96
 
The stock has given a decent correction from the peak of 147 to bottom out near 97 levels where it had consolidated for some time and currently has indicated a positive candle with decent volume participation to imply strength and the potential to rise further in the coming days. We suggest to buy and accumulate the stock for an upside target of Rs 135-140 keeping the stop loss near Rs 96 levels. READ MORE

Nifty outlook & stock recommendations by Sameet Chavan of Angel Broking

KIRI INDUSTRIES
 
View – Bullish
 
Last Close – Rs. 423.95
 
Justification – This stock is yet to participate in the rally the broader market has seen over the past couple of months. We have already witnessed a long consolidation of nearly three months and finally, the stock prices managed to confirm a breakout in the upward direction. If we look at the overall volume activity, it has risen substantially in the recent up move. In addition, the ‘RSI-Smoothened’ on daily chart has crossed above the 70 mark, which we believe should provide the impetus for the next leg of the rally. Thus, we recommend buying this stock for a target of Rs 464 over the next days. The stop loss should be fixed at Rs 398.40. READ MORE

Top stock picks by CapitalVia Global Research: Buy Marico, ICICI Bank

Market traded in close range on Friday; 12,000 would be crucial for next week
 
Market traded in a close range on Thursday as traders turned cautious ahead of an extended weekend since equity markets remained closed on Friday due to Mahashivratri. The Nifty closed at 12,080.90 on Thursday, shedding 45 points. PSU banks, Metal and Private banks traded with positive sentiments whereas IT and FMCG stocks traded with weakness. Nifty bank closed at 30,942.85, adding 104.65 points from the previous day’s closing. READ MORE

Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee Check

Source: Bloomberg


Oil Check

>> At 8:13 am, Brent Crude Futures were at 56.36 per barrel-mark, down 2.73 per cent.

SGX Nifty

>> At 8:08 am, the Singaporean Exchange for Nifty Futures were at 11,956, down 78 points or 0.65 per cent.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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