MARKET WRAP: Indices gain for 2nd day, Sensex rises 350 pts; HUL surges 5%

Topics Markets | MARKET WRAP

Buying in FMCG, metals, financials and auto counters along with positive global cues helped equity market settle in the green for the second day in a row on Wednesday. The S&P BSE Sensex rallied 350 points or 0.85 per cent to end at 41,566 while NSE's Nifty50 settle at 12,201, up 93 points or 0.77 per cent.

FMCG giant Hindustan Unilever (HUL) zoomed over 5 per cent to end at Rs 2,262 apiece on the BSE. It was the top gainer on the Sensex. The stock hit a fresh 52-week high of Rs 2,271 during the day. HUL’s m-cap stood at Rs 4,89,464 crore (Rs 4.89 trillion).

ICICI Bank, Reliance Industries (RIL), HDFC Bank, Infosys, and TCS were the other major contributors to the index's gains. 

Broader market, on the other hand, underperformed frontline indices. The S&P BSE MidCap index slipped 47 points or 0.29 per cent to close at 15,789 levels while the S&P BSE SmallCap index lost 13 points or 0.09 per cent to settle at 14,737.

Among the sectoral indices on the NSE, Nifty FMCG gained the most - up nearly 2 per cent to 30,986 points, followed by Nifty Metal and Nifty Auto indices. 

GLOBAL MARKETS 

Global share markets nudged higher on Wednesday amid hopes the worst of the coronavirus in China may have passed, although prevailing uncertainty about the outbreak kept investors wary. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.9 per cent while Chinese shares reversed early losses to trade up 0.41 per cent.

Shares in Hong Kong rose 0.9 per cent to a three-week high. Australian shares were up 0.47 per cent, while Japan's Nikkei stock index rose 0.53 per cent. Euro Stoxx 50 futures were up 0.05 per cent, German DAX futures were up 0.08 per cent, and FTSE futures were up 0.13 per cent.

Oil prices extended gains as China reported its lowest daily number of new coronavirus cases since late January, stoking investor hopes that fuel demand in the world’s second-largest oil consumer may begin to recover from the epidemic.

(With inputs from Reuters)

4:05 PM IST Investors' appetite for risk improved as coronavirus concerns receded for the second day in a row. The impact of coronavirus has already affected the supply chains and factory activities across the globe, but the ground reality is improving in China and we can expect improvement in the next quarter. The domestic market is awaiting the January inflation and consensus show a spike in inflation which is expected to impact rate-sensitive stocks.

3:53 PM IST

3:53 PM IST

3:39 PM IST The S&P BSE Sensex rallied 350 points or 0.85 per cent to settle at 41,566 while NSE's Nifty50 index ended at 12,201, up 93 points or 0.77 per cent.

3:25 PM IST

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2:27 PM IST

2:24 PM IST Global share markets nudged higher on Wednesday amid hopes the worst of the coronavirus in China may have passed, although prevailing uncertainty about the outbreak kept investors wary. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.9 per cent while Chinese shares reversed early losses to trade up 0.41 per cent.   Shares in Hong Kong rose 0.9 per cent to a three-week high. Australian shares were up 0.47 per cent, while Japan's Nikkei stock index rose 0.53 per cent.   Euro Stoxx 50 futures STXEc1 were up 0.05 per cent, German DAX futures were up 0.08 per cent, and FTSE futures were up 0.13 per cent. In commodities, oil futures, which have been in a downtrend since the start of the year, rose in Asia from 13-month lows due to budding optimism about the virus and hopes that output cuts by major producers will support prices.  

2:13 PM IST

2:03 PM IST -- Revenue down 12.1% at Rs 29,197 crore  

LIVE UPDATES

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

Investors' appetite for risk improved as coronavirus concerns receded for the second day in a row. The impact of coronavirus has already affected the supply chains and factory activities across the globe, but the ground reality is improving in China and we can expect improvement in the next quarter. The domestic market is awaiting the January inflation and consensus show a spike in inflation which is expected to impact rate-sensitive stocks.

SECTOR WATCH | Top gainers and losers on the NSE


MARKET AT CLOSE | Top gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex rallied 350 points or 0.85 per cent to settle at 41,566 while NSE's Nifty50 index ended at 12,201, up 93 points or 0.77 per cent.

MARKET CHECK | Top gainers on the BSE at this hour


MARKET CHECK


Heatmap: S&P BSE Sensex


Contribution to S&P BSE Sensex's gain today


Nifty sectoral indices at this hour


Global Markets check

Global share markets nudged higher on Wednesday amid hopes the worst of the coronavirus in China may have passed, although prevailing uncertainty about the outbreak kept investors wary. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.9 per cent while Chinese shares reversed early losses to trade up 0.41 per cent.
 
Shares in Hong Kong rose 0.9 per cent to a three-week high. Australian shares were up 0.47 per cent, while Japan's Nikkei stock index rose 0.53 per cent.
 
Euro Stoxx 50 futures STXEc1 were up 0.05 per cent, German DAX futures were up 0.08 per cent, and FTSE futures were up 0.13 per cent.

In commodities, oil futures, which have been in a downtrend since the start of the year, rose in Asia from 13-month lows due to budding optimism about the virus and hopes that output cuts by major producers will support prices.
 

Rupee check


RESULTS CORNER:: Hindalco Q3 consolidated net profit down 23.8% YoY at Rs 1,062 cr

-- Revenue down 12.1% at Rs 29,197 crore
 

BROKERAGE RADAR | Centrum Broking on Bajaj Consumer Care

Considering weak revenue growth, persistent category headwind and weak demand outlook we cut revenue/ earnings estimates for FY20E/FY2E by 6-9 per cent / 12-16 per cent and introduce FY22 estimates. We maintain Buy rating with revised TP of Rs 303 (earlier Rs 387), implying PE 16.2x FY22E EPS.

BUZZING STOCK | PC Jeweller jumps over 15%


Most active stocks by volume

COMPANY PRICE(rs) CHG(%) VOLUME
VODAFONE IDEA 4.53 -6.98 40077110
RELIANCE POWER 1.80 -4.76 11108142
SUZLON ENERGY 2.45 -9.93 6185829
YES BANK 35.10 -4.75 5093232
INDIABULLS HOUS. 330.15 -4.30 2379355
» More on Most Active Volume

MARKET CHECK | 0.9% equity of IEX changes hands


BROKERAGE RADAR | Anand Rathi Broking on Dilip Buildcon

Delayed appointed dates and sluggish order accretion in late FY19 and early FY20 led to weak Q3 and 9M revenue growth, expectedly. What is good is that management used the time not only to lighten its balance sheet, but also reduce dependence on a single segment for growth (roads share down). These efforts continue. A further positive was the ability to find a suitor for a part of under-construction hybrid annuity portfolio, and efforts are on to monetise the balance portfolio. This should help create headroom for newer hybrid annuities. With the recent healthy awarding and with the existing OB moving, we see respectable revenue growth ahead. On proven execution capabilities, we retain a Buy.

Valuation: On the delayed appointed dates, we lower FY20e earnings nearly 10% (and nearly 13% for FY21). On our newly introduced FY22e, the stock (excl. investments) trades at PER of 6.4x FY22e.

Risk: Slower pace of execution.

Auto production to slide 8.3% in 2020; coronavirus may hit supply: Fitch

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Broader markets underperform benchmarks


Sugar shares in focus; Balrampur Chini, Dhampur Sugar surge over 6%

Shares of sugar companies were in focus in Wednesday's session and rallied by up to 8 per cent on the BSE on expectation of no significant upward revision in sugar production. Balrampur Chini Mills, Avadh Sugar & Energy, Dhampur Sugar Mills, Dalmia Bharat Sugar and Industries, Uttam Sugar Mills and Dwarikesh Sugar Industries were up 5 per cent to 8 per cent in intra-day trade today. In comparison, the S&P BSE Sensex was up 0.8 per cent at 41,540 points at 12:24 pm. READ MORE

Polycab, Astral Poly Technik: How to trade construction-related stocks

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BUZZING STOCK | Wockhardt slips nearly 2%; Co to sell mfg plant in Baddi


Commercial vehicles, two-wheelers likely to see a smooth drive from H2CY20

Commercial vehicles (CVs) and two-wheelers, after clocking big growth in January 2018, have reported a decline of 14.04 per cent and 16.06 per cent, respectively, in the same month this year over the equivalent period in 2019. CVs and two-wheelers reported 39 per cent and 33 per cent growth, respectively, in January 2018 over the same month in 2017. The two segments continue to feel the pressure of slowdown in rural sales and changes in regulations, among other things. READ MORE

MARKET UPDATE:: Slight fall in Nifty; index slips below 12,200


Indiabulls Housing Finance extends loss after RBI's clarification


Lakshmi Vilas Bank surges 41% in a week on report US fund house eyes stake

Shares of Lakshmi Vilas Bank were locked in 5 per cent upper circuit at Rs 20.90 on the BSE on Wednesday after reports emerged saying that a US fund house is eyeing a big stake in the cash-strapped bank. The private sector lender's stock has been frozen upper circuit for the fourth straight day. In the past week, the stock has rallied 41 per cent against 1 per cent rise in the S&P BSE Sensex. READ MORE

BUZZING STOCK | Bandhan Bank up nearly 4% ahead of MSCI India Index Review



Govt to scrap registration fees for buying electric vehicles: Javadekar

The government is promoting electric vehicles (EV) by proposing to drop registration fees and using the Union Budget to given an additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase such transport, said Prakash Javadekar, Minister of Heavy Industries and Public Enterprises, has said. READ MORE

MARKET CHECK


Avenue Supermarts continues winning run, up 4% today


SPARC slips 10% as USFDA rejects cancer drug application

Shares of Sun Pharma Advanced Research Company (SPARC) slipped 10 per cent to Rs 172 on the BSE on Wednesday in an otherwise strong market after the US health regulator rejected the cancer drug application. SPARC on Tuesday said the company has received a Complete Response Letter (CRL) from the United States Food & Drug Administration (USFDA) for the new drug application (NDA) for Taclantis (Paclitaxel Injection Concentrate for Suspension). READ MORE

Contribution to S&P BSE Sensex's gain today


NEWS ALERT | Have sufficient cash on balance sheet to continue business: BSE's Ashishkumar Chauhan on CNBC TV18

-- Operating income has gone up QoQ

-- Have given back close to Rs 1,100 cr to shareholders in one and half years

-- Have 20% stake in CDSL currently

BROKERAGE RADAR | HDFC Securities on Oil India

We expect the oil prices to remain muted owing to the robust supply from US Shale and weakening global macros, despite production cut from OPEC and non-OPEC countries. Thus, we do not foresee subsidy sharing in FY21/22E as well. Upstream companies have remained out of flavor owing to stake sale from GoI to achieve its disinvestment target and it remains a key overhang on the stock (in the last 2 years, GoI’s shareholding shrank from 66.7% to 59.57%). OIL will generate OCF yield of 25.7/47.1% and divided yield of 7.7/9.1% over FY21/22E. Hence, we believe the current valuations are contextually low. Our TP is Rs 209/sh (6x Dec-21E standalone + Rs 81 from investments) vs the consensus TP of Rs 216.

BROKERAGE RADAR | ICICI Securities on JK Cement

While at absolute levels, the company’s debt looks to be elevated, improving cash flows are expected to keep leverage levels under check. Rising cash flows combined with healthy profitability & return ratios are key factors in favour of the company. We continue to remain positive on JK Cement and maintain our BUY rating on the stock. We upgrade our target price on the company to Rs 1,650, factoring in the growth that the company would witness from the new capacities (~9.5x FY21E EV/EBITDA).

MARKET CHECK:: Sensex off day's high; index still up over 350 pts


BUZZING STOCK:: Aster DM Healthcare surges 7%


HEG plunges 14% on poor Q3 earnings, Co posts net loss of Rs 1.23 crore

Shares of graphite electrode manufacturer HEG slipped nearly 14 per cent on Wednesday after the company reported poor set of financial numbers for the quarter ended December 31, 2019 (Q3FY20). The company reported consolidated loss of Rs 1.23 crore for the quarter under review against Rs 444.60 crore profit registered in the year-ago period. Total revenue declined 78 per cent year-on-year (YoY) to Rs 420.97 crore. READ MORE

Hindustan Unilever surges 5%, hits new high; m-cap nears Rs 5 trillion

Shares of the fast moving consumer goods (FMCG) giant Hindustan Unilever (HUL) rallied 5 per cent and hit a new high of Rs 2,259 on the BSE on Wednesday. The stock surpassed its previous high of Rs 2,204 recorded on February 4, 2020. With today’s gain, HUL has outperformed the market by surging 11 per cent thus far in February. In comparison, the S&P BSE Sensex was up 2 per cent, while the sector index S&P BSE FMCG slipped 0.06 per cent during the same period. READ MORE

IRCTC up 3% ahead of Q3 results


SECTOR WATCH:: FMCG stocks rally


IndusInd Bank falls 3% after Moody's downgrades bank's outlook to negative

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Market check


Veterans script a new plot in shadow banking, raise Rs 4,000 cr in equity

In 2005, Jaspal Singh Bindra cut a cheque of $3.3 billion for Standard Chartered Bank’s purchase of Korea First Bank. “Nowadays, I chase investors for Rs 50-100 crore,” says the Centrum Group's executive chairman, and former group executive director at the UK-based bank. READ MORE

MARKET CHECK:: Sensex extends gains


BUZZING STOCK:: Honeywell Automation surges 4%


MARKET UPDATE:: Nifty hits 12,200


IDBI Bank declines over 3%

>> The private sector lender's profit before tax (PBT) stood at Rs 755.89 crore in the third quarter ended December 2019 (Q3FY20) on teh back of a rise in net interest income and a dip in provisions for bad loans.


Result Impact | Majesco rises 2%

>>  Net profit of the company rose 57 per cent to Rs 23.43 crore in the quarter ended December 2019 while sales rose 4.08 per cent to Rs 265 crore.

Motherson Sumi trades in the green on stable global cues


Result Impact | Coal India gains over 1%


Sectoral trends at NSE during Opening trade


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


First Trade


First Trade | Sensex gains over 200 pts


NEWS ALERT | Indian Railway Finance Corporation (IRFC) IPO likely in current fiscal: CNBC TV18

-- Govt and IRFC may look at offloading 15% equity via listing

-- Govt may raise Rs 1,500 cr via IRFC listing
 

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


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens stronger at 71.23/$ vs Tuesday's close of 71.28 against the US dollar.

IRFC likely to decide on issue of retail bonds following IPO response

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Stocks to watch: Coal India, SBI, IndusInd Bank, IRCTC, Hindalco, BHEL

Here's a list of stocks that may trade actively in today's trading session -
 
Coal India on Tuesday reported a 14-per cent year-on-year (YoY) decline in consolidated net profit for the December quarter at Rs 3,921.8 crore.
 
IndusInd Bank: Ratings agency Moody's Investors Service revised down its outlook on IndusInd Bank to 'negative' from 'stable' on Tuesday. The private sector bank's rating has been affirmed at the earlier one of 'Baa-3/P-3', the agency said in a note. READ MORE

Moody's cuts IndusInd Bank's outlook to negative over asset deterioration

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Tax sops may turn depository receipts more attractive for foreign investors

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Muted outlook, margin pressures may dent Motherson Sumi's prospects

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Transmission volumes, unified tariff among triggers to fire up GAIL

GAIL’s better-than-expected show for the December quarter (Q3), led by a rebound in the gas trading segment’s performance, boosted the Street’s sentiment, leading to an almost six per cent surge in the stock on Tuesday. Most other segments, including petrochemicals, LPG and hydrocarbons also saw some improvement. READ MORE

Weekly stock picks by Religare Broking: Buy Balkrishna Industries, HUL

Buy Hindustan Unilever
 
Last Close: Rs 2,152.65
 
Initiation range: Rs 2,140-2,150
 
We’re seeing a mixed trend on the FMCG front and HINDUNLVR has been outshining most of its peers. It has taken a pause around its record high after a sharp surge, providing fresh buying opportunity to those who missed earlier. All indications are in the favor of fresh breakout in the near future. We thus advise traders to use this phase and accumulate in the given range. READ MORE

Nifty view & technical calls from HDFC Securities: Buy L&T Infotech, CDSL

Remain long in Nifty with the stop loss of 11,900; Target 12,400
 
After a minor profit booking on Friday and Monday, the Nifty resumed its uptrend Tuesday by rising by 76 points to close at 12,108 levels.
 
The short-term and medium-term trend of the Nifty remain positive with Nifty trading above its 20,50 and 200-day EMA. Oscillators and momentum Indicators like RSI and MACD turned positive on the daily chart. READ MORE

Bulk deals on BSE as on Tuesday

Bulk deals on NSE as on Tuesday

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


Rupee Check

Source: Bloomberg



Oil Check

>> In the commodities market, US crude futures ticked up 0.32 per cent to $50.10 a barrel on hopes that Chinese demand for oil will pick up once the flu-like virus is contained, Reuters reported.

SGX Nifty

>> At 7:57 am, the Singaporean Exchange for Nifty Futures were at 12,159 level, up 32 points or 0.27 per cent.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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