MARKET WRAP: Sensex slides 200 pts, Nifty above 12,150; India VIX rises 3%

Topics MARKET WRAP | Markets

Photo: Kamlesh Pednekar
Tepid earning growth in the December quarter of FY20 (Q3FY20), and a cut of over one percentage point in India's FY20 gross domestic product (GDP) growth forecast at 4.9 per cent by the International Monetary Fund (IMF) kept investment activity in check. Besides, subdued trade across Asian markets, too, had impact on the Indian equities.

Heavy selling across banking, automobile, and metal counters, including HDFC Bank, ICICI Bank, Infosys, Maruti Suzuki, and Tata Steel, kept indices in the negative territory on Tuesday. 

The S&P BSE Sensex erased 205.10 points, or 0.49 per cent, to settle at 41,323.81 level. Tata Steel, Asian Paints, and Maruti Suzuki were the top laggards at the headline index. On the other hand, UltraTech Cement, HDFC, and IndusInd Bank ended the day as top gainers. In the intra-day trade, the Sensex hit a low of 41,301.63.

Market breadth remained in favour of declines with 1,393 stocks declining on the BSE, as against gain in 1,107 stocks. About 174 stocks remained unchanged at the BSE. The volatility index -- India VIX -- closed 3 per cent higher.

On the NSE, the Nifty50 slipped below the psychological level of 12,200 to end at 12,169.65 level, down 54.90 points or 0.45 per cent. All the key sectoral indices settled in the negative territory, barring Nifty Media index. Nifty Realty index (down 1.52 per cent) and Nifty Auto and Metal indices (down 1.3 per cent each) declined the most.

The broader markets, although in the red, outperformed the frontline indices. The S&P BSE mid-cap closed 0.25 per cent lower at 15,580.46 level, while the S&P BSE small-cap index settled unchanged at 14,651.78. 

GLOBAL MARKETS

Global shares took a beating on Tuesday, wiping out all gains made at the start of the week. MSCI’s All-Country World Index slipped 0.4 per cent, while Hong Kong's Hang sang fell 2.8 per cent. 

Besides, Japan’s Nikkei lost 0.9 per cent and Shanghai blue chips 1.7 per cet, with airlines under pressure. The caution spread to E-Mini futures for the S&P 500 which eased 0.5 per cent.

In Europe, the pan-European STOXX 600 dropped 0.7 per cent with all major sub sectors in negative territory.


4:29 PM IST On the second consecutive day, Nifty and Sensex ended lower. Benchmark Nifty closed at the day’s lowest level at 12169 and Sensex ended at 41323. IMF has also lowered the growth estimate of India to 4.80% for 2019, which prompted investors to resort to profit-taking. Except for Nifty media and Small Cap 100 index, other indices closed in negative territory. It is better that the Indian markets are correcting ahead of the Union Budget, which is scheduled on February 1.  Major stocks are correcting to their major support levels that investors should consider as an opportunity to invest with a positional view. Technically, Nifty is having support between 12180 and 12120 levels. Invest in select stocks between the same.

3:41 PM IST

3:41 PM IST

3:40 PM IST >> The S&P BSE Sensex erased 205.10 points, or 0.49 per cent, to settle at 41,323.81 level. Tata Steel, Asian Paints, and Maruti Suzuki were the top laggards at the headline index. >> On the NSE, the Nifty50 slipped below the psychological level of 12,200 to end at 12,169.65 level, down 54.90 points or 0.45 per cent. 

3:22 PM IST

2:59 PM IST

2:53 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%) APL APOLLO 1985.00 2020.65 44.30 2.28 BHARTI AIRTEL 513.10 515.00 3.85 0.76 CAN FIN HOMES 459.20 459.90 69.85 17.94 FINE ORGANIC 2206.00 2270.00 -14.55 -0.66 GODFREY PHILLIPS 1440.50 1480.40 26.25 1.86 » More on 52 Week High

2:41 PM IST

2:38 PM IST Oil prices fell nearly 1 per cent on Tuesday as investors expected Libya’s oil production to eventually resume following a force majeure declared by the oil exporter on two major oilfields amid a military blockade. Brent crude was down 56 cents, or nearly 0.9 per cent, at $64.64 per barrel, after rising to its highest in more than a week on Monday. US West Texas Intermediate crude was down 35 cents, or 0.6 per cent, at $58.19 a barrel.

2:34 PM IST

2:32 PM IST >> ED has now summoned Tony Fernandes on 5th Feb. >> Tharumalingam Kanagalingam summoned on 3rd Feb 

2:30 PM IST >> ED filed affidavit in NCLAT against JSW Steel's plea seeking immunity Alert: JSW Steel with a bid of Rs 19,700 cr had emerged as the successful bidder under IBC for Bhushan Power & Steel

LIVE UPDATES

Market Closing Comment :: Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities

On the second consecutive day, Nifty and Sensex ended lower. Benchmark Nifty closed at the day’s lowest level at 12169 and Sensex ended at 41323. IMF has also lowered the growth estimate of India to 4.80% for 2019, which prompted investors to resort to profit-taking.

Except for Nifty media and Small Cap 100 index, other indices closed in negative territory. It is better that the Indian markets are correcting ahead of the Union Budget, which is scheduled on February 1.  Major stocks are correcting to their major support levels that investors should consider as an opportunity to invest with a positional view. Technically, Nifty is having support between 12180 and 12120 levels. Invest in select stocks between the same.

Nifty snapshot at close


Sensex heatmap at close


Closing Bell

>> The S&P BSE Sensex erased 205.10 points, or 0.49 per cent, to settle at 41,323.81 level. Tata Steel, Asian Paints, and Maruti Suzuki were the top laggards at the headline index.

>> On the NSE, the Nifty50 slipped below the psychological level of 12,200 to end at 12,169.65 level, down 54.90 points or 0.45 per cent. 

Market check | Sensex at day's low


MARKET UPDATE:: Broader indices continue to outperform benchmarks


BSE500 stocks that hit 52-week high today

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
APL APOLLO 1985.00 2020.65 44.30 2.28
BHARTI AIRTEL 513.10 515.00 3.85 0.76
CAN FIN HOMES 459.20 459.90 69.85 17.94
FINE ORGANIC 2206.00 2270.00 -14.55 -0.66
GODFREY PHILLIPS 1440.50 1480.40 26.25 1.86
» More on 52 Week High

BUZZING STOCK:: Century Textiles up 4%


Oil update

Oil prices fell nearly 1 per cent on Tuesday as investors expected Libya’s oil production to eventually resume following a force majeure declared by the oil exporter on two major oilfields amid a military blockade.

Brent crude was down 56 cents, or nearly 0.9 per cent, at $64.64 per barrel, after rising to its highest in more than a week on Monday. US West Texas Intermediate crude was down 35 cents, or 0.6 per cent, at $58.19 a barrel.

STOCK ALERT :: 0.5% equity exchanged


NEWS ALERT | ED gives fresh date to Tony Fernandes in Air Asia case: sources to CNBC TV18

>> ED has now summoned Tony Fernandes on 5th Feb.

>> Tharumalingam Kanagalingam summoned on 3rd Feb 

NEWS ALERT | Bhushan Power - JSW Steel IBC case Update

>> ED filed affidavit in NCLAT against JSW Steel's plea seeking immunity

Alert: JSW Steel with a bid of Rs 19,700 cr had emerged as the successful bidder under IBC for Bhushan Power & Steel

NEWS ALERT | Hindustan Aeronautics to raise working capital limit from Rs 7,300 cr to Rs 12,050 cr: BSE filing

>> Revised cap for issuance of Commercial Papers at Rs 5000 cr


Rupee check


Valuation discount brings more comfort to HCL Technologies' investors

A better-than-expected performance on revenue and margins in the December quarter as well as a guidance revision should help HCL Technologies report the best organic growth among large-cap peers in 2019-20 (FY20). The company revised its revenue guidance in constant currency terms for the current financial year to 16.5-17 per cent, from 15-17 per cent indicated earlier. READ MORE

Nifty sectoral indices at this hour


Heatmap: S&P BSE Sensex


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 5.73 0.87 17.90 62933296
RELIANCE POWER 2.11 -0.11 -4.95 3445772
SUZLON ENERGY 2.52 0.06 2.44 2789845
YES BANK 38.35 -0.30 -0.78 2753172
DISH TV 13.40 0.61 4.77 2593498
» More on Most Active Volume

Housing finance stocks in focus; Can Fin Homes surges 17% post Q3 results

Shares of housing finance companies were in focus in an otherwise subdued market on Tuesday after Can Fin Homes reported robust earnings for the third quarter (October-December) of fiscal 2019-2020. Can Fin Homes surged 17 per cent to hit a new 52-week high of Rs 457 on the BSE after reporting a 40 per cent year-on-year (YoY) rise in net profit at Rs 106.61 crore for Q3FY20. Net interest income (NII) was up 23.9 per cent at Rs 169 crore against Rs 136.11 crore in the same quarter last year. READ MORE

NEWS ALERT | Granules India board approves share buyback of up to 1.25 cr equity shares

>> Buyback of shares worth Rs 250 cr at Rs 200/sh

RESULT UPDATE:: ICICI Pru Q3 net profit up 1.9% at Rs 302.5 cr vs Rs 297 cr (YoY)

-- Net premium income up 8.7% at Rs 8,131 cr vs Rs 7,483 cr (YoY)



RESULT UPDATE:: Granules India cons net profit up 6.1% at Rs 64 cr vs Rs 60.3 cr (YoY)

-- Consolidated revenue up 11.4% YoY at Rs 704 cr vs Rs 631.8 cr
 
-- One-time loss at Rs 32 cr

 

Axis Bank Q3 preview: Commentary on employee churn, NPAs key monitorables

A stable quarterly performance could be in the offing for private lender Axis Bank, which, according to analysts, could report up to 61 per cent year-on-year (YoY) jump in the net profit at Rs 2,705.4 crore for the December quarter of the current financial year (Q3FY20). Besides, steady credit growth and moderation in slippages could also be expected. READ MORE

BUZZING STOCK:: Can Fin Homes surges 15%


BUZZING STOCK | ZEE Entertainment up over 3% ahead of Q3 nos


Spencer's Retail surges 18% as RK Damani picks up 2% stake in Dec quarter

Radhakishan S Damani acquired 1.66 million equity shares, or 2.09 per cent stake, in the company during the recently concluded quarter, reveals shareholding pattern data, filed by the company. The veteran investor had nil or less than 1 per cent holding in the company at the end of September quarter, data shows. READ MORE

MCA unearths Rs 700 cr scam in Unitech, says funds diverted to 16 shell cos

The ministry of corporate affairs (MCA) has unearthed a scam of around Rs 700 crore in troubled real estate company Unitech. The office of the regional director – north – has found that Unitech siphoned off huge amounts of money to various shell companies, a senior government official told Business Standard. READ MORE

Auto stocks under pressure

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
ASHOK LEYLAND 86.00 1.30 1.53 781031
TATA MOTORS 193.30 -1.75 -0.90 491228
TATA MOTORS-DVR 79.75 -1.20 -1.48 187777
ESCORTS 708.05 -5.05 -0.71 30554
M & M 555.70 -11.40 -2.01 24274
» More

NEWS ALERT | ED attaches assets worth Rs 107.7 cr of Fair Deal Supplies directors in a bank fraud case: sources to CNBC TV18

>> Properties attached under PMLA, 2002

Alert: PMLA is Prevention of Money Laundering Act
 

KEI Industries soars 6% as December quarter earnings beat Street estimates

Shares of KEI Industries rallied 6 per cent to Rs 551 on the BSE on Tuesday in an otherwise weak market after the company reported better-than-expected growth in Q3 net profit. The cables & wires company's net profit grew 50 per cent year-on-year (YoY) at Rs 72.54 crore in the December quarter (Q3FY20) as compared to a profit of Rs 48.21 crore in the year-ago quarter. READ MORE

Sector watch | Nifty Pharma index trading higher in a weak market


BUZZING STOCK:: RBL Bank up 3%


SC says pleas by telcos on statutory dues will be heard next week

The Supreme Court on Tuesday agreed to list next week the fresh pleas of telecom firms, including Bharti Airtel, Vodafone Idea and Tata Teleservices, seeking a fresh schedule of payment of statutory dues to the tune of Rs 1.47 lakh crore to the Department of Telecommunications. A bench headed by Chief Justice S A Bobde took note of submissions by a battery of senior lawyers including A M Singhvi and C A Sundaram and said it will list the fresh pleas "sometime in next week" before the same bench which had heard the earlier petition in the high-stake matter. READ MORE

Contribution to S&P BSE Sensex's fall today


Century Textiles hits fresh 52-week high, surges 40% in 3 months

Shares of Century Textiles & Industries gained 3 per cent to hit a fresh 52-week high of Rs 553 on the BSE on Tuesday amid expectations of improved financial performance in the second half of the current financial year (H2FY20). The company is scheduled to announce Q3FY20 results on January 28, 2020. The stock of the BK Birla Group company has zoomed 40 per cent in the past three months, after it turned ex-date on October 11, 2019 for the demerger of cement division and its merger into UltraTech Cement. READ MORE

Info Edge gains over 3% as Zomato acquires Uber Eats' India business

Shares of Info Edge (India) climbed as much as 3.36 per cent to hit a high of Rs 2,676 apiece on the BSE in the intra-day trade on Tuesday after food aggregator Zomato signed a definitive agreement to acquire Uber Eats, Uber's food delivery business in India, in an all-stock transaction. Info Edge has a stake in Zomato, which upon closing of the said acquisition, will reduce to about 22.71 per cent on fully converted and diluted basis, it said in a regulatory filing. READ MORE

Better volumes, led by expansion, to drive JSPL's future earnings: Analysts

In a quarter that saw steel prices coming under pressure and falling to a one-year low, Jindal Steel and Power (JSPL) did well, reporting a 7.7 per cent sequential improvement in operating performance in its India business. READ MORE

NEWS ALERT | Telcos mention AGR plea before CJI's court : CNBC TV18

>> Matter to be heard next week: CJI

Apollo Tricoat Tubes surges 6%, hits new high on strong Q3 results

Shares of Apollo Tricoat Tubes surged 6 per cent to Rs 350 on the BSE on Tuesday after it reported an impressive 86 per cent quarter-on-quarter (QoQ) jump in its net profit at Rs 17.5 crore for December quarter of the current fiscal year (Q3FY20). The home improvement innovation company had posted profit of Rs 9.4 crore in the September quarter (Q2FY20). READ MORE

Vodafone Idea zooms 16% on hope SC could extend AGR payment deadline

Shares of Vodafone Idea surged 16 per cent to Rs 5.70 on Tuesday, extending its Monday's 8 per cent gain on the BSE, amid hopes that the Supreme Court (SC) may extend the deadline for adjusted gross revenue (AGR) dues payment of January 24, 2020.. On Friday, the stock of telecom services provider tanked 25 per cent to level of Rs 4.51 after the SC rejected the review petition by Vodafone Idea and Bharti Airtel challenging the apex court's 24 October order on AGR. READ MORE

Rupee-dollar derivatives set to enter stock exchanges in GIFT City IFSC

The Reserve Bank of India (RBI) is now expected to issue detailed regulations for the same. The purpose for this facility is to bring the offshore rupee market, onshore. As of now huge rupee trades take place in overseas no-deliverable forwards (NDFs). READ MORE

Market check


IMF blames India for global slowdown, lowers 2019 growth forecast to 4.8%

The IMF projection, 1.3 percentage points lower than its earlier estimates, is less than the 5 per cent projected by the official advance estimates. The IMF projected India’s economy to grow by 5.8 per cent next year, which is 1.2 percentage points less than its earlier forecast. It also forecast the economy to grow by 6.5 per cent in 2021-22 which is 0.9 percentage point lower than earlier projections. READ MORE
Gita Gopinath, IMF Chief Economist

BROKERAGE RADAR | ICICI Securities on JSPL

Resolution of Australian mines and debt is underway and could add to partial coal security from FY21. Oman realisation/te is expected to be US$50/te higher QoQ in Q4FY20. Net debt reduction continued in Q3FY20 reaching Rs355bn (down Rs10bn QoQ and ~Rs40bn in 9MFY20). We rollover to FY22 and maintain BUY with a revised target price of Rs249/share. (earlier Rs215/share)

BROKERAGE RADAR | Motilal Oswal Financial Services on Federal Bank

Federal Bank is taking a cautious approach in building the loan mix toward high-rated corporate and retail loans, while strong liability franchise will enable lower cost of funds, supporting margins. We estimate earnings CAGR of 27% over FY19-22 and RoA/RoE of 1.1%/14.9% by FY22. Maintain Buy with a revised TP of Rs 115 (1.4x Sep21E ABV). 

Momentum picks by ICICI Securities


Bank of Baroda trades in the green

>> Government has appointed Sanjiv Chadha Managing Director (MD) and Chief Executive Officer (CEO) of Bank of Baroda (BoB).

Alert: He succeeds P S Jayakumar, whose term ended in October last year. 


Oberoi Realty trades weaker

>> Mumbai-based Oberoi Realty and US-based fund Interups have joined the race to acquire Lavasa Corporation, a real estate city near Mumbai. Lavasa is facing bankruptcy proceedings at the National Company Law Tribunal (NCLT) Mumbai after it failed to repay debt of Rs 6,200 crore.


MOIL slips 3% amid reports govt has divested 6% stake


Info Edge gains as Zomato acquires UberEats

Alert: Info Edge has stake in Zomato

Polycab India trades higher ahead of Q3 nos today


Can Fin Homes trades higher post Q3 nos


Vodafone Idea jumps 11% on hope SC could extend AGR payment timeline


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


Uber sells its India food delivery business to Zomato in all-stock deal

Uber will get a 9.9 per cent stake in Zomato as part of the deal whose size has not been disclosed. The deal for Uber Eats, which operates in 41 cities, was signed at 3 am, and its customers will be shifted to the Zomato app from 7 am. 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 71.18/$ vs Monday's close of 71.11 against the US dollar

At multi-quarter low, HDFC Bank's retail loan growth may face more pain

A few weeks ago, when HDFC Bank published its December quarter (Q3) loan growth and deposit data, analysts were of the opinion that the widespread economic downturn wasn’t hurting it much. This was tested over the weekend, when HDFC Bank published its Q3 results. READ MORE

NEWS ALERT | USFDA issues 2 observations to Karkhadi unit of Alembic Pharma: BSE filing

Alert: Inspection was at Alembic Pharmaceuticals API Facility located at Karkhadi from 13th January, 2020 to 17th January, 2020

Aramco deal, more asset sale crucial for making RIL net-debt free: Analysts

Mukesh Ambani’s plan to make Reliance Industries (RIL) net-debt free before March 2021 will hinge on completion of announced deals and some more initiatives, according to analysts. READ MORE

Valuation discount brings more comfort to HCL Technologies' investors

A better-than-expected performance on revenue and margins in the December quarter as well as a guidance revision should help HCL Technologies report the best organic growth among large-cap peers in 2019-20 (FY20). READ MORE

Stocks to watch: Info Edge, ZEEL, Havells, Polycab, IndiaMART, HDFC AMC

Here's a look at the top stocks that may trade actively in today's trading session -
 
Info Edge: The stock may hog the limelight as Zomato acquires Uber Eats. Info Edge has a stake in Zomato.
 
Earnings today: Zee Entertainment Enterprises (ZEEL), Polycab India, IndiaMART InterMESH, Havells, ICICI Prudential Life, and HDFC AMC are among 25 companies that are scheduled to release their quarterly results later in the day. READ MORE

NEWS ALERT | Bank of Japan maintains 10-yr JGB yield target at around 0%

>> Maintains short-term interest rate target at -0.1 per cent

>> BoJ says, Japan's economy continue to expand at moderate rate as a trend

Stock recommendation from Prabhudas Lilladher: Buy Dr Reddy's, GAIL

BUY DR. REDDY'S | CMP: Rs 3,059.60 | TARGET: Rs 3,350 | STOP LOSS: Rs 2,900
 
The stock has steadily and gradually been on the rise with positive indicators supporting the momentum and currently has given a breakout above the previous peak level of 3,000, indicating a positive bias for further more upside targets. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 3,350 while keeping the stop loss of Rs 2,900. READ MORE

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

NIFTY: SELL | TGT: 11,990 | SL: 12,350
 
The Nifty closed deep in the negative territory on Tuesday and, as anticipated, has reversed well from the upper end of the rising wedge pattern, which is also a negative sign in the short term. The index has also provided a sell crossover on its hourly charts and with that, the index seems to have reversed the overall trend in the short term. READ MORE

Bulk deals on BSE as on Monday

Bulk deals on NSE as on Monday

Date Symbol Security Name Client Name Buy / Sell Quantity Traded Trade Price /
Wght. Avg.
Price
20-Jan-2020 ATULAUTO Atul Auto Limited ADITYA BIRLA SUN LIFE MUTUAL LTD BUY 1,90,000 251.50
20-Jan-2020 CONTI Continental Seed Chem Ltd MANISH KUMAR SELL 68,000 53.35
20-Jan-2020 DCI DC Infotech and Comun Ltd SMARTNET INFOTECH & SERVICES PVT LTD SELL 57,000 45.50
20-Jan-2020 GOODLUCK Goodluck India Limited MAXRICH GLOBAL STOCKS PRIVATE LIMITED BUY 52,963 60.38
20-Jan-2020 GOODLUCK Goodluck India Limited MAXRICH GLOBAL STOCKS PRIVATE LIMITED SELL 2,19,141 60.37
Click here for the full list

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


Rupee check

Source: Bloomberg



Oil check

Oil prices rose on Tuesday after Libya declared force majeure on two major oilfields following a military blockade and protests escalated in Iraq, raising supply concerns.

Brent crude was trading up 11 cents, or 0.2 per cent, at $65.31 per barrel by 0101 GMT. US West Texas Intermediate crude futures were up 20 cents, or 0.3 per cent, at $58.74 a barrel.

Asian Markets check


TRADE SET UP | SGX Nifty trades lower


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