MARKET WRAP: Sensex up 227 pts, mid-cap rally continues; metal stocks gain

Bulls held their reigns for the second consecutive day on Friday, as markets decisively stayed in the positive territory after a mild blip in the early morning trade. Pre-budget rally and decent Q3FY20 results throughout the day were the biggest factors driving the markets today. Banking counters were leading the charge from the front with HDFC twins, ICICI Bank, Kotak Mahindra Bank, and Axis Bank being the top contributors of the gains today. 

The benchmark S&P BSE Sensex surged 421 points off day's low to hit an intra-day high of 41,697.03. At close, the Sensex settled at 41,613.19 level, up 226.79 points or 0.55 per cent. UltraTech Cement, L&T, Tech Mahindra, and Kotak Mahindra Bank were the top gainers on the 30-share index, while Power Grid, IndusInd Bank, TCS, and Reliance Industries were the top laggards. 

On the NSE, the Nifty50 reclaimed the 12,250-mark in the intra-day trade today and hit a high of 12,272.15. The 50-share index ended 67.90 points, or 0.56 per cent, higher at 12,248.25 mark. Sectorally, all the key indices settled in the positive territory barring Nifty IT and Pharma indices. Nifty Metal index settled 1.02 per cent higher, followed by Nifty Financial Services index (up 0.9 per cent) and Nifty Bank index (up 0.8 per cent).

Broader markets continued their outperformance on Friday as well, with the S&P BSE mid-cap index hitting its fresh 52-week high in the intra-day trade today. At close, the index was at 15,826.57 level, up 0.8 per cent. The S&P BSE small-cap index, meanwhile, settled 0.5 per cent higher at 14,848.49.

GLOBAL MARKETS

European shares gained on Friday as the World Health Organization stopped short of calling the virus outbreak in China a global emergency, with focus turning to flash PMI readings from major economies in the region.

After four consecutive sessions of declines, the pan-European STOXX 600 climbed 0.8 per cent by 1:40 pm. Germany's DAX rose the most among regional peers.

Meanwhile, Asian shares steadied today in holiday-thinned trade for the Lunar New Year. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.12 per cent, while Japan's Nikkei gained 0.13 per cent and Australian stocks added a marginal 0.04 per cent.

Trade in Asia was already slowing down for the Lunar New Year holiday, with financial markets in mainland China, Taiwan and South Korea closed on Friday. Hong Kong's Hang Seng ended up 0.15 per cent, trading for a half-day due to the holiday.

(With inputs from Reuters)

3:44 PM IST

3:43 PM IST

3:42 PM IST >> At close, the S&P BSE Sensex settled at 41,613.19 level, up 226.79 points or 0.55 per cent. >> The NIfty50 index ended 67.90 points, or 0.56 per cent, higher at 12,248.25 mark.

3:18 PM IST Two state-run oil marketing companies are offering discounts on digital transactions at their petrol outlets. Representatives of the fuel retail industry see it as a sign of competition from the recently announced Jio-BP venture. READ MORE

3:06 PM IST AU Small Finance Bank, ICICI Securities and Indraprastha Gas (IGL) from the midcap index hit their respective all-time highs in the intra-day trade today. While, Amara Raja Batteries, MRF, Page Industries, Tata Chemicals, Torrent Power and Voltas touched their 52-week highs. READ MORE

2:44 PM IST

2:26 PM IST European shares gained on Friday as the World Health Organization stopped short of calling the virus outbreak in China a global emergency, with focus turning to flash PMI readings from major economies in the region. After four consecutive sessions of declines, the pan-European STOXX 600 climbed 0.8 per cent by 0804 GMT. Germany's DAX rose the most among regional peers. Asian shares steadied on Friday in holiday-thinned trade for the Lunar New Year. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.12 per cent, while Japan's Nikkei gained 0.13 per cent and Australian stocks added a marginal 0.04 per cent.   Trade in Asia was already slowing down for the Lunar New Year holiday, with financial markets in mainland China, Taiwan and South Korea closed on Friday. Hong Kong's Hang Seng ended up 0.15 per cent, trading for a half-day due to the holiday.

2:16 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%) AMARA RAJA BATT. 807.75 811.25 16.80 2.12 AMBER ENTERP. 1371.15 1378.25 6.15 0.45 APL APOLLO 2039.70 2070.00 28.80 1.43 ATUL 4507.05 4564.00 123.60 2.82 AU SMALL FINANCE 1019.90 1032.15 45.15 4.63 » More on 52 Week High

2:06 PM IST For private lender ICICI Bank, one-time gain from Essar Steel resolution would be the biggest factor driving the bank’s December quarter earnings for FY20 (Q3FY20). On the back of an estimated recovery worth over Rs 2,000 crore, the bank is likely to see provision write-off, stable slippages, and improved credit cost. At the bourses, the bank has outperformed the indices during the quarter under review. Between October and December, 2019, the stock of the lender surged 24.3 per cent, as against a 6.68 per cent rise in the benchmark S&P BSE Sensex. READ MORE

2:04 PM IST -- Standalone net profit at Rs 643.2 cr -- Standalone revenue at Rs 9,981.8 cr -- Standalone Ebitda margin at 17.9%   -- Othe income at Rs 164 cr  

1:42 PM IST

LIVE UPDATES

Nifty snapshot at close


Sensex heatmap at close


Closing Bell

>> At close, the S&P BSE Sensex settled at 41,613.19 level, up 226.79 points or 0.55 per cent.

>> The NIfty50 index ended 67.90 points, or 0.56 per cent, higher at 12,248.25 mark.

Oil marketing companies to take on RIL with e-discounts, cashbacks

Two state-run oil marketing companies are offering discounts on digital transactions at their petrol outlets. Representatives of the fuel retail industry see it as a sign of competition from the recently announced Jio-BP venture. READ MORE

BSE Midcap index hits 52-wk high; AU Small, ICICI Securities at new highs

AU Small Finance Bank, ICICI Securities and Indraprastha Gas (IGL) from the midcap index hit their respective all-time highs in the intra-day trade today. While, Amara Raja Batteries, MRF, Page Industries, Tata Chemicals, Torrent Power and Voltas touched their 52-week highs. READ MORE

Heatmap: S&P BSE Sensex


Global Markets check

European shares gained on Friday as the World Health Organization stopped short of calling the virus outbreak in China a global emergency, with focus turning to flash PMI readings from major economies in the region.

After four consecutive sessions of declines, the pan-European STOXX 600 climbed 0.8 per cent by 0804 GMT. Germany's DAX rose the most among regional peers.

Asian shares steadied on Friday in holiday-thinned trade for the Lunar New Year. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.12 per cent, while Japan's Nikkei gained 0.13 per cent and Australian stocks added a marginal 0.04 per cent.
 
Trade in Asia was already slowing down for the Lunar New Year holiday, with financial markets in mainland China, Taiwan and South Korea closed on Friday. Hong Kong's Hang Seng ended up 0.15 per cent, trading for a half-day due to the holiday.

BSE500 stocks that hit 52-week high today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
AMARA RAJA BATT. 807.75 811.25 16.80 2.12
AMBER ENTERP. 1371.15 1378.25 6.15 0.45
APL APOLLO 2039.70 2070.00 28.80 1.43
ATUL 4507.05 4564.00 123.60 2.82
AU SMALL FINANCE 1019.90 1032.15 45.15 4.63
» More on 52 Week High

ICICI Bank Q3 preview: Essar Steel recovery may trim provisions, aid profit

For private lender ICICI Bank, one-time gain from Essar Steel resolution would be the biggest factor driving the bank’s December quarter earnings for FY20 (Q3FY20). On the back of an estimated recovery worth over Rs 2,000 crore, the bank is likely to see provision write-off, stable slippages, and improved credit cost. At the bourses, the bank has outperformed the indices during the quarter under review. Between October and December, 2019, the stock of the lender surged 24.3 per cent, as against a 6.68 per cent rise in the benchmark S&P BSE Sensex. READ MORE

RESULTS CORNER:: Ultratech consolidated Q3 net profit up 90.2% at Rs 711.3 cr vs 374.1 cr (YoY)

-- Standalone net profit at Rs 643.2 cr

-- Standalone revenue at Rs 9,981.8 cr

-- Standalone Ebitda margin at 17.9%
 
-- Othe income at Rs 164 cr
 

MARKET UPDATE:: Sensex up 200 points, at day's high now


MARKET UPDATE:: Nifty reclaims 12,250


Broader markets continue good run, outperform benchmarks


Rupee check


BUZZING STOCK | BHEL trades 3.5% higher


BUZZING STOCK:: Allcargo Logistics continues its winning run, surges over 10%


Sector watch:: Metals gain

COMPANY NAME LATEST CHG
(rs)
CHG(%)
NMDC 130.65 -2.40 -1.80
COAL INDIA 194.40 3.65 1.91
VEDANTA 156.60 2.45 1.59
HIND.COPPER 46.45 1.45 3.22
TINPLATE CO. 155.40 1.50 0.97
DEC.GOLD MINES 24.50 0.20 0.82

Early birds bring little cheer: Key firms post sub-par pre-tax Q3 profit

The earnings season of October-December 2019 quarter of financial year 2019-20 (Q3FY20) has got off to a dull start for corporate India, as pre-tax profit growth for early birds was second lowest in seven quarters, while net sales growth hit a three-year low. The combined profit before tax (PBT) of 143 early companies that declared their Q3FY20 results was up 12.3 per cent year-on-year (YoY) led by decline in raw material and energy costs. READ MORE

SC stays NCLAT order in Tata-Cyrus Mistry matter, dismisses RoC plea

The Supreme Court on Friday stayed the National Company Law Appellate Tribunal's order dismissing the Registrar of Companies (RoC) plea seeking modification of its verdict in the Tata-Cyrus Mistry matter. A bench comprising Chief Justice S A Bobde and Justices B R Gavai and Surya Kant agreed to hear Tata Sons Pvt Ltd's appeal and issued notice to the parties concerned. READ MORE

Nifty sectoral indices at this hour


YES Bank records sharpest intra-day gain in six weeks, up 17% in two days

The stock has rallied 17 per cent in the past two days, after the country’s largest public sector bank’s State Bank of India (SBI) Chairman Rajnish Kumar said he’s certain “some solutions will emerge” to steady YES Bank, which has been on a prolonged quest to raise new capital. READ MORE   


Singapore overhauls fund regime to bolster industry, attract offshore funds

Singapore’s attractiveness as a destination for Indian and global offshore funds is likely to get a leg-up, with the country adopting a new fund framework this year. Termed the Variable Capital Companies (VCC), the new corporate structure will provide fund managers greater operational flexibility and cost savings. Fund managers can incorporate new VCCs or re-domicile their existing investment funds with comparable structures by transferring their registration to Singapore as VCCs. READ MORE

Century Textiles hits fresh 52-week high on fund raising plan via NCDs

Shares of Century Textiles & Industries hit a fresh 52-week high of Rs 610, up 4 per cent on the BSE on Friday after the company announced fund raising plan of up to Rs 400 crore through non-convertible debentures (NCDs). The BK Birla Group company's stock was trading higher for the sixth straight day. In the past week, it has rallied 15 per cent, as compared to 1 per cent decline in the S&P BSE Sensex. READ MORE

NEWS ALERT | Not received any (new) request from SEBI to conduct further audits: Infosys

>> Says, the Company had received letters from regulatory authorities seeking information on the anonymous whistleblower investigation. The Company continues to cooperate with regulatory authorities.

>> Clarifies, not received any request from SEBI as reported in the media on Jan 23, 2020.

BUZZING STOCK:: YES Bank surges 8%


Bank of Baroda Q3 preview: DHFL could dent asset quality, say analysts

Analysts at Reliance Securities see exposure to DHFL worth Rs 20 billion slipping in this quarter. Other NBFC exposures, however, appear safe as they have already been recognized as NPA in Q2FY20, they said.
 
“Reversal of provisions from Essar Steel exposure (nearly Rs 17 billion) could partly compensate for the higher provisioning requirements for slippages from NBFC portfolio,” they said. READ PREVIEW HERE

Adani Gas crashes 14% on report of gas regulator's notice on non-disclosure

Shares of Adani Gas slipped 14 per cent to Rs 148 on the BSE in Friday's session on reports that Petroleum and Natural Gas Regulatory Board of India (PNGRB) has sent a notice to the company for failing to disclose crucial information regarding a scheme of arrangement with Adani Enterprises. According to the report, Adani Gas has bid for gas projects using networth calculations of Adani Enterprises and that the company’s shareholding changes and restructuring violated city gas distribution regulations. READ MORE

KEI Industries gains 5% post launch of QIP issue to raise Rs 500 cr

Shares of KEI Industries jumped 5 per cent to Rs 547 on the BSE on Friday, after the cable maker undertook the issue of equity shares on a qualified institutions placement (QIP) basis. The company said it launched a qualified placement of shares on Thursday and fixed the floor price of Rs 518.14 per share. It plans to raise up to Rs 500 crore from the issue. READ MORE

BROKERAGE RADAR | JM Financial on PNB Housing Finance

We believe a capital raise is essential for higher retail growth given current leverage stands high at c.9x. Moreover, resolution of these corporate NPA / stressed accounts is also essential alongwith a reasonable estimate of their LGDs. We forecast slower AUM CAGR of 7 per cent over FY19-22E as the management focusses on raising Tier-1 capital, maintaining adequate liquidity, resolution of corporate accounts and further reducing gearing levels. In light of the above, we downgrade the stock to HOLD valuing the company at 0.75x FY22E BV with a TP of Rs 500.

BROKERAGE RADAR | ICICI Securities on AU Small Finance Bank

While AU is on the right track to sustain industry-leading growth and maintain robust asset quality, we believe current valuation captures most positives such as high growth, superior execution track record and best-in-class asset quality. We, thus, maintain our HOLD rating with a revised target price of Rs 980, valuing the stock at 5x Sep’21E BVPS.

Key upside risk: Margin expansion on the back of significantly higher incremental yields.

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 5.86 -0.05 -0.85 7851723
YES BANK 42.80 1.85 4.52 4628364
RELIANCE POWER 2.27 0.10 4.61 3525140
SUZLON ENERGY 2.51 -0.03 -1.18 785497
ADANI GAS 162.60 -10.25 -5.93 611628
» More on Most Active Volume

Zensar Technologies stock plunges 13% on weak Q3 numbers

Shares of Zensar Technologies plunged 13 per cent to Rs 172 on the BSE on Friday after the company reported weak set of numbers for December quarter (Q3FY20) with revenues declining 5.9 per cent in dollar terms on sequential basis. Analysts had expected 1.1 per cent quarter-on-quarter (QoQ) revenue growth in US dollar terms. READ MORE

MARKET CHECK:: Sensex off day's lows, up 100 pts now


HCL Tech gains over 1%, trades near 52-week high level


BROKERAGE RADAR | Anand Rathi Shares on Alembic Pharma

Alembic has invested nearly Rs 2 billion in new capacities (Aleor plus oncology and OSDs) aiming to diversify its product range in the US and improve the quality of its filings. Further, a turnaround in its India base is likely to help maintain double-digit growth for the next few years. We upgrade the stock to a Buy, with higher price target of Rs 740 (earlier Rs 624), based on 18x FY22e EPS.

Risks: Regulatory hurdles, delay in product approvals, pricing risk in India.

BROKERAGE RADAR | Centrum Broking on Asian Paints

Considering benign input cost environment and lower corporate tax rate we maintain our FY20E/FY21E and introduce FY22E estimates. We retain Buy rating with revised DCF-based target price Rs 2,057, implying 54x FY21E earnings. Key risks to our call include weak demand conditions due to a slowing economy, rise in crude oil prices and currency depreciation. 

Public sector banks trade higher


BROKERAGE RADAR | Prabhudas Lilladher initiates coverage on Godrej Agrovet

Rating: BUY | CMP: Rs 555 | TP: Rs 659
 
Company Initiation - Play on uptick in Agri growth

We believe Godrej Agrovet (GOAGRO) is an integrated play on Agri with strong presence in Animal Feed (51% of revenue), Crop Protection (16%) and Palm Oil (9%) business. GOAGRO's unique blend of high growth and mature businesses with market leadership in organized animal feed and oligopolistic positioning in palm oil will enable it to scale up business further by keeping working capital under check. We believe strong Agri commodity and dairy prices will enable Animal Feed, Oil Palm and Crop protection business to report significant acceleration in growth in FY21. We estimate 12% revenue CAGR and EBITDA margin improvement of 160 bps between FY20-22E which will enable 29% PAT CAGR. At CMP the stock is trading at 13.9x & 22.9x FY22 blended EV/EBITDA & P/E.

BROKERAGE RADAR | Momentum picks by ICICI Securities


MARKET UPDATE:: Nifty reclaims 12,200 level


Powergrid slides 3% in early trade


Asian Paints up 1%


Adani Group stocks trade under pressure

COMPANY NAME LATEST CHG
(rs)
CHG(%)
ADANI GAS 158.30 -14.55 -8.42
ADANI ENTERP. 224.90 -4.75 -2.07
ADANI GREEN 182.95 -9.40 -4.89
ADANI POWER 63.05 -0.20 -0.32
ADANI TRANSMISSI 327.00 -5.55 -1.67
ADANI PORTS 382.20 -3.70 -0.96

Indiabulls Housing Fin advances over 2% after foreign brokerage firm Credit Suisse bought stake

>> Firm bought 22,93,306 shares of the company


Biocon slides post weak Q3


Infosys slips in trade amid reports Sebi may inspect Co's financial books


Zensar Tech plunges post Q3 nos


Adani Gas tanks 10% on reports of notice by PNGRB


Sectoral trends at NSE during Opening trade


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


Market at Open


Market at Open


NEWS ALERT | PNGRB sends notice to Adani Gas for not disclosing crucial information: CNBC TV18

-- Notice for not disclosing scheme of arrangement with Adani Ent
 
-- Adani Gas bid for gas projects using net worth calculation of Adani Ent

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 71.33/$ vs Thursday's close of 71.26 against the US dollar

Dependence on Tamil, Telugu cinema dents PVR's Q3 profit; all eyes on Inox

Stocks of multiplexes — PVR and Inox Leisure (Inox) — have remained investors’ favourite in recent times. They were up 10-30 per cent in the past six months until January 22, even as the overall consumption sentiment was low.
 
These gains were on the back of expectations that the two cinema exhibitors would overcome the sagging consumption scenario and continue posting strong performance. READ MORE

Stocks to watch: Indiabulls Housing, BoB, UltraTech Cement, M&M, Biocon

Here's a look at the top stocks that may remain in focus today -
 
Earnings today: A total of 46 companies are slated to unveil their financial results for the quarter ended December 31, 2019 today. The list includes names such as Bank of Baroda, UltraTech Cement, Emkay Global Financial Services, and AAVAS Financiers.
 
Infosys: Markets watchdog Sebi is likely to call for a forensic audit of the books of Infosys as it continues to probe whistleblower allegations of alleged financial irregularities at the company, according to sources. READ MORE

RBL Bank: Regaining investor confidence an uphill task post Q3 results

RBL Bank posted its weakest-ever asset quality in the December quarter (Q3), prompting analysts to downgrade their earnings expectations by 10-15 per cent. This, however, does not seemed to have soured the Street’s mood, which remained optimistic on Thursday. READ MORE

Derivatives strategy by HDFC Securities: Buy Infosys' January Futures

Buy INFY JANUARY 780 Call at Rs 11
 
Stop Loss: Rs 4
 
Target: Rs 25
 
Lot Size: 1,200
 
Rationale:
 
-- We have seen Long build up in the Infy Futures’ yesterday where we have seen rise in Open Interest with price rising by 1.8 per cent. READ MORE

Outlook & trading strategies for Copper, Silver by Tradebulls Securities

Gold once again has taken support at $1,530 and recovered from there, making a temporary bottom. There are a number of strong drivers supporting gold prices this year, including geopolitical and trade tensions, high global debt and dovish central banks. Gold is still lagging compared to equities. The key support levels to watch are $1,545 in April gold COMEX. READ HERE

Nifty outlook and top trading ideas by Jay Anand Thakkar of Anand Rathi

BUY NIFTY | TGT: 12,300 | SL: 12,090
 
Nifty closed in the positive territory on Thursday, and, with that, the first leg of downside seems to have got over and a bounce back has resumed. The index is likely to bounce till 12,300 levels in the short-term after which it is again likely to correct. Hence, for a bounce, one can buy Nifty for the target of 12,300 with a stop loss of 12,090. 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

Oil prices were steady on Friday, but on track for a fall of up to 5 per cent for the week on growing concern that fuel demand will weaken as the spread of a respiratory virus from China that has killed 25 so far dents travel and darkens the economic outlook.
 
Brent crude futures were 4 cents lower to $62 a barrel by 0225 GMT, its lowest since December 4, after falling 1.9 per cent the previous session. For the week, Brent is down 4 per cent.
 
US West Texas Intermediate futures were down by 1 cent to $55.58 a barrel, its lowest since November 29. The contract fell 2 per cent on Thursday and is 5 per cent lower for the week.

TRADE SET UP | SGX Nifty trades lower


Asian Markets check


US Markets check

(Source: Reuters)
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