MARKET WRAP: Sensex falls 202 pts post AGR verdict; Voda-Idea tanks 23%

Topics Markets | MARKET WRAP

Photo: Kamlesh Pednekar
Equity market came under pressure on Friday after the Supreme Court (SC) rejected the telecom companies' plea seeking new schedule of adjusted gross revenue (AGR) payments and directed them to clear their dues to the government by March 17. READ MORE

The S&P BSE Sensex slid 202 points or 0.49 per cent to settle at 41,258, with IndusInd Bank (down 4 per cent) being the top loser and Bharti Airtel (up nearly 5 per cent) the biggest gainer. 

On the NSE, the benchmark Nifty50 index ended at 12,113, down 61 points or 0.5 per cent. 

Among telcos, Vodafone Idea tumbled over 23 per cent to Rs 3.44 apiece on the BSE post the AGR verdict. Bharti Infratel settled nearly 6 per cent lower at Rs 231. On the other hand, Bharti Airtel jumped 5 per cent to a fresh lifetime high of Rs 565 on the BSE as investors bet on a potential duopoly in the Indian telephony market after the Supreme Court today rejected the telcos' review plea on adjusted gross revenues (AGR) payments. The stock settled at Rs 564, up around 4.5 per cent. 

AGR verdict: Voda-Idea to struggle; but duopoly may not be ideal solution

Financial and banking stocks, too, took a beating following the decision as, according to reports, they have high exposure to Vodafone Idea's debt. Nifty Bank tumbled 395 points or over 1 per cent to 30,835 points. 

In the broader market, the S&P BSE MidCap index slipped 0.8 per cent while the S&P BSE SmallCap index settled 0.4 per cent lower at 14,683.

GLOBAL MARKETS

European shares touched record highs on Friday as investors digested whether China’s coronavirus outbreak would cause long-lasting damage to global economy. Earlier, Asian shares had earlier inched higher toward their second straight week of gains, helped by hopes governments will make provisions to soften the impact on their economies from the coronavirus epidemic.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.2 per cent for weekly gain of 1.8 per cent, while China's blue-chip CSI300 shares rose 0.7 per cent, having staged a stunning recovery to claw back 95 per cent of their losses made after the outbreak.

In commodities, oil edged higher and was on track for its first weekly gain in six weeks. 

(With inputs from Reuters)


3:42 PM IST

3:41 PM IST

3:39 PM IST The S&P BSE Sensex slipped 202 points or 0.49 per cent to end at 41,258-mark while NSE's Nifty50 closed the session at 12,113, down 61 points or 0.5 per cent. 

3:19 PM IST Shares of Adani Enterprises hit a fresh 52-week high of Rs 259, up 3 per cent on the BSE on Friday after its arm signed agreement with Airports Authority of India (AAI) for the operations, management and development of three airports. READ MORE  

3:01 PM IST

2:56 PM IST Shares of budget carrier SpiceJet surged as much as 10.27 per cent to Rs 93.4 on the National Stock Exchange (NSE) on Friday after the airline was back in the black and reported a standalone net profit of Rs 73.2 crore in the December quarter of FY20 (Q3FY20), as against Rs 55 crore in the corresponding quarter of the previous fiscal (Q3FY19). The airline had incurred a massive net loss of Rs 462.5 crore in the September quarter of the current fiscal. READ MORE

2:51 PM IST

2:43 PM IST

2:37 PM IST

2:35 PM IST

2:32 PM IST Asian shares inched higher on Friday, on course to post the second straight week of gains, helped by hopes governments will make provisions to soften the impact on their economies from the coronavirus epidemic. European shares are expected to rise, with pan-European Euro Stoxx 50 futures up 0.21 per cent, German DAX futures adding 0.3 per cent and FTSE futures  ticking up 0.21 per cent.   MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.25 per cent on Friday for weekly gain of 1.77 per cent. Japan's Nikkei dropped 0.59 per cent, not helped by the news of first coronavirus death and signs of a potential rise in domestic infections in the country. Market sentiment improved also after World Health Organization official said the big jump in China’s reported cases reflects a decision by authorities there to reclassify a backlog of suspected cases by using patients’ chest images, and is not necessarily the “tip of an iceberg” of a wider epidemic. In commodities, oil prices extended their week-old recovery on hopes that the world’s biggest producers would cut output more as demand looks set to drop sharply due to the outbreak of coronavirus.

2:20 PM IST -- Revenue up 46.9% YoY at Rs 3,656.4 cr -- EBITDAR at Rs 761.6 cr

LIVE UPDATES

SECTOR WATCH | Top losers and gainers on the NSE


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


CLOSING BELL

The S&P BSE Sensex slipped 202 points or 0.49 per cent to end at 41,258-mark while NSE's Nifty50 closed the session at 12,113, down 61 points or 0.5 per cent. 

Adani Enterprises hits 52-week high after it signs agreement with AAI

Shares of Adani Enterprises hit a fresh 52-week high of Rs 259, up 3 per cent on the BSE on Friday after its arm signed agreement with Airports Authority of India (AAI) for the operations, management and development of three airports. READ MORE  


NEWS ALERT | Avenue Supermarts' OFS for Non-Retail investors fully subscribed


SpiceJet soars 10% on 21% YoY rise in net profit; B737 may return this year

Shares of budget carrier SpiceJet surged as much as 10.27 per cent to Rs 93.4 on the National Stock Exchange (NSE) on Friday after the airline was back in the black and reported a standalone net profit of Rs 73.2 crore in the December quarter of FY20 (Q3FY20), as against Rs 55 crore in the corresponding quarter of the previous fiscal (Q3FY19). The airline had incurred a massive net loss of Rs 462.5 crore in the September quarter of the current fiscal. READ MORE

Nifty sectoral indices at this hour


MARKET UPDATE:: Nifty below 12,100


Heatmap: S&P BSE Sensex


MARKET CHECK | Pfizer plunges 9% post Q3 results


Global Markets check

Asian shares inched higher on Friday, on course to post the second straight week of gains, helped by hopes governments will make provisions to soften the impact on their economies from the coronavirus epidemic.

European shares are expected to rise, with pan-European Euro Stoxx 50 futures up 0.21 per cent, German DAX futures adding 0.3 per cent and FTSE futures  ticking up 0.21 per cent.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.25 per cent on Friday for weekly gain of 1.77 per cent.

Japan's Nikkei dropped 0.59 per cent, not helped by the news of first coronavirus death and signs of a potential rise in domestic infections in the country.

Market sentiment improved also after World Health Organization official said the big jump in China’s reported cases reflects a decision by authorities there to reclassify a backlog of suspected cases by using patients’ chest images, and is not necessarily the “tip of an iceberg” of a wider epidemic.

In commodities, oil prices extended their week-old recovery on hopes that the world’s biggest producers would cut output more as demand looks set to drop sharply due to the outbreak of coronavirus.

RESULTS CORNER:: Spicejet consolidated Q3 net profit up 21.1% YoY at Rs 78 cr

-- Revenue up 46.9% YoY at Rs 3,656.4 cr

-- EBITDAR at Rs 761.6 cr

Post-Budget trend shows nearly half of Nifty500 stocks trade below 50-DMA

Post Budget 2020-21, around 238 stocks have slipped below their 50-day moving average (DMA) while before the Budget, the numbers stood at 178. Among other moving averages, the scenario seems to be the same. For instance, stocks trading below 100-DMA before Budget were 162 which has now increased to 213 whereas stocks below 200-DMA before Budget were 189 but now stands at 206. READ MORE

Rupee check


IndusInd Bank hits over 3-year low; tumbles 11% in six sessions

Shares of IndusInd Bank slipped 4 per cent to hit an over three-year low of Rs 1,182 on the BSE on Friday amid concerns over rising bad loans. The private sector lender's stock was trading at its lowest level since January 10, 2017. It has now fallen below its previous low of Rs 1,192, touched on October 11, 2019. In the past six trading days, IndusInd Bank's stock price has slipped 11 per cent, as compared to a marginal 0.17 per cent rise in the benchmark S&P BSE Sensex. READ MORE

SECTOR WATCH:: Metals decline


MARKET UPDATE:: Sensex falls again


Shell, RIL win in English HC against govt in PMT oil, gas field dispute

The government had sought $3.5 billion in dues from Reliance and Shell-owned BG Exploration & Production India Ltd based on an October 2016 partial award of an international arbitration tribunal over the recovery of certain costs from the sale of oil and gas produced from the Panna-Mukta and Tapti fields.
 
The two firms had gone to the English High Court against the 2016 partial award. READ MORE

AGR Verdict Impact | Vodafone Idea extend losses, tanks 30% from day's high


NEWS ALERT | Non-retail portion of Avenue Supermart's OFS subscribed 24% till 12:45 pm


AGR verdict: Voda-Idea to struggle; but duopoly may not be ideal solution

"Bharti Airtel and Reliance Jio, the telecom arm of Reliance Industries (RIL) will not face an issue due to the verdict as they have the means to pay. However, Vodafone Idea will struggle to survive unless they bring in a lot of money," said G Chokkalingam, founder & managing director of Equinomics. "There are many countries which have two telecom players, but the population size is not as big as India's. So, for our country whether duopoly in telecom sector is good or not, government has to take a call," Chokkalingam added. READ MORE

Bharti Airtel surges 5%, hits new high after SC rejects telcos' plea

Shares of Bharti Airtel jumped 5 per cent to a fresh lifetime high of Rs 565 on the BSE on Friday as investors bet on a potential duopoly in the Indian telephony market after the Supreme Court today rejected the telcos' review plea on adjusted gross revenues (AGR) payments. In a major setback for the telecom companies, the Supreme Court rejected the plea seeking new schedule of AGR payments. READ MORE

 

LIC IPO | Process may extend beyond FY21, says Macquarie

The investment banking and financial services firm in a note cast doubt on the chances of LIC hitting the IPO market in the next financial year (FY21), following its interactions with actuaries and valuers.
 
The report pointed out that the first step towards valuing the IPO would be to split LIC’s books into three parts — the traditional participating (PAR) book, non-PAR book, and shareholders’ funds. READ MORE

NEWS ALERT | Cera Sanitaryware Board approves dividend of Rs 13/sh: BSE filing


Ircon International surges 29% in three days on good Q3 results

Shares of Ircon International rallied 9 per cent and hit a new high of Rs 572 on the BSE on Friday after reporting margin improvement of 185 basis points in the quarter ended December 2019 (Q3FY20). The stock of the state-owned construction & engineering company was trading at its highest level since listing on September 28, 2018. In the past three trading days, the stock has surged 29 per cent, as compared to a marginal 0.35 per cent rise in the S&P BSE Sensex. READ MORE

AGR verdict: SBI, IndusInd Bank slip up to 4% as banks stare at NPA pile-up

Among individual stocks, IndusInd Bank hit fresh 52-week low, down 4 per cent, to Rs 1181.1 on the NSE. Besides, IDFC First Bank slipped 2.7 per cent, RBL Bank (2.3 per cent), Axis Bank (2 per cent), HDFC Bank (1.9 per cent), Federal Bank (1.4 per cent), and SBI (1.8 per cent). YES Bank, however, were trading 8 per cent higher. As for ICICI Bank, the stock slipped up to 0.8 per cent, before paring losses to trade 0.8 per cent higher. READ MORE

IOL Chemicals jumps 6%


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 3.98 -11.16
YES BANK 39.40 5.91
GODREJ AGROVET 529.00 -4.88
SUZLON ENERGY 2.39 2.58
RELIANCE POWER 1.77 -1.12
» More on Most Active Volume

Bharti Airtel off lows, up over 2% now


BROKERAGE RADAR | Emkay Global Financial Services on Nestle India

Growth visibility remains better than peers but upsides to earnings are not visible given steep input inflation and higher spends to drive growth. After a substantial outperformance over the last two years (up 100%), Nestle’s current performance and strong growth visibility appear to be priced in at 50x Mar-22E EPS. We, hence, downgrade the rating to Hold from Buy and maintain an EW position in sector EAP. Our revised TP stands at Rs 16,000 (Rs15,900 earlier), based on 50x Mar-22E EPS. Key risks are higher competition and a lack of success in new launches.

Voda Idea dips 11% as SC rejects telcos' plea for new schedule for AGR dues

Shares of Vodafone Idea reversed their early morning gains and dipped 11 per cent to Rs 3.96 on the BSE on Friday after the Supreme Court rejected the telcos' plea seeking new schedule of adjusted gross revenues (AGR) payments. Coming down heavily on the Department of Telecommunications (DoT) for not taking coercive action against telcos for failing to repay, the apex court ordered contempt proceedings against Bharti Airtel and Vodafone Idea. READ MORE

NEWS ALERT | PSUs to withdraw their petitions: SC, reports CNBC TV18

>>  Can challenge the DoT demand notice separately

Banks hit after AGR verdict


NEWS ALERT | SC directs MD of Bharti Airtel, Voda Idea to be present in court

>> SC directs launch of contempt proceedings against telcos, DoT officials for violating orders
COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VODAFONE IDEA 4.26 5.25 4.10 -0.22 -4.91 14.28
REL. COMM. 0.72 0.75 0.71 -0.01 -1.37 0.05
BHARTI AIRTEL 538.95 547.80 534.50 -0.85 -0.16 6.94
TATA TELE. MAH. 3.34 3.80 3.31 -0.30 -8.24 0.03
M T N L 10.46 10.67 10.31 0.13 1.26 0.02

MARKET UPDATE:: Sharp fall in Sensex


Vodafone Idea gains 15% post Q3 results; SC to hear plea on AGR dues today

Shares of Vodafone Idea were up 15 per cent to Rs 5.25 on the BSE in early morning deal on Friday despite the company reporting a consolidated loss of Rs 6,439 crore for the December quarter (Q3FY20). The telecom services provider had posted loss of Rs 5,005 crore in the same quarter of last fiscal. In two weeks prior to the Q3 results, Vodafone Idea's stock had underperformed the market by falling 24 per cent, as compared to a marginal 0.18 per cent rise in the S&P BSE Sensex. READ MORE

NEWS ALERT | SC slams DoT for staying coercive action against telcos, reports CNBC TV18

>> We will draw contempt against the DoT officers and against telecom companies

>> We dismissed the review petitions, yet not a penny has been deposited: SC

Nestle hits 52-week high on strong Dec quarter result, dividend bounty

Shares of Nestle India advanced 2 per cent to hit fresh 52-week high of Rs 16,753.45 on the BSE on Friday after the packaged food firm staged an impressive December quarter show. That apart, the company also recommended a final dividend of Rs 61 per equity share for the year 2019. The company's net profit rose 38.4 per cent year-on-year (YoY) to Rs 473.02 crore during the recently concluded quarter, helped by volume growth. READ MORE

Valuation gap between Asian Paints and Berger Paints should narrow: Experts

There is little doubt that the two decorative paint majors — Asian Paints and Berger Paints — have done well in recent times despite muted consumption sentiment. This trend is expected to continue for now. In the last six months, the two stocks have gained 19-60 per cent, against a 12 per cent rise in the Sensex. Analysts, however, say the gap in valuation is unsustainable and either Asian Paints will soon catch up, or Berger will witness a correction in share price. READ MORE

Page Industries slips 8% on disappointing December quarter results

Shares of inner wear maker Page Industries slipped 8 per cent to Rs 21,650 on the BSE on Friday after the company reported a sharp 500 basis points decline in operating profit margins in December quarter (Q3FY20), due to higher expenses. Page Industries is engaged in the manufacturing, distribution, and marketing of innerwear athleisure sleepwear and swimwear for men, women, and kids. READ MORE

MARKET UPDATE:: Sensex gives up opening gains, turns flat


Igarashi Motors India zooms 12%


Avenue Supermarts slips 5% on OFS launch; promoters to offload 2.3% stake

Shares of Avenue Supermarts, the parent company of supermarket chain D-Mart, slipped over 5 per cent on Friday after the company announced its promoters will offload 2.28 per cent stake (14.8 million shares) through the offer for sale (OFS) route on Friday. The base price for the share sale has been set at Rs 2,049, a discount of 19.4 per cent to the current market price. READ MORE
.

SECTOR WATCH:: Telecom stocks trade higher ahead of AGR hearing

COMPANY LATEST(rs) CHG(%) VOLUME
VODAFONE IDEA 4.96 10.71 13042159
BHARTI AIRTEL 543.55 0.69 34041
TEJAS NETWORKS 74.25 3.92 6819
» More

MARKET UPDATE:: Sensex off opening highs


BUZZING STOCK:: Castrol India climbs 3%


RESULT IMPACT:: Apollo Hospitals up over 2%


Tech stocks gain in early trade


Market check


Page Industries slumps over 7%


Tata Motors adds nearly 2%


Vodafone Idea jumps over 6% ahead of AGR hearing today


YES Bank extends gain


Result Impact | BPCL gains in trade

>> State-owned Bharat Petroleum Corp Ltd (BPCL) on Thursday reported near trebling of net profit in the December quarter to Rs 2,051.43 crore. BPCL had posted a net profit of Rs 698.62 crore in October-December 2018.


Nestle hits 52-week high post Q3 nos


Avenue Supermarts slides 3%


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


GIC Re's size and monopoly not helping it attract investors' attention

State-run General Insurance Corporation of India (GIC) would probably serve as a good example of how enterprises fail to attract investors' attention despite its monopoly position in the industry. GIC is the only domestic general insurer operating in India’s reinsurance industry with a market share of over 90 per cent. 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 higher at 71.30/$ vs Thursday's close of 71.32 against the US dollar

Sebi develops system to detect misuse of client securities by stock brokers

Markets regulator Sebi on Thursday said it has developed an online system to timely detect misuse of clients' securities by stock brokers and alert exchanges in case of diversion of investors funds.
 
This comes after Sebi observed that some brokers have misused clients' securities received as collateral to meet their own settlement obligation or obligations of other clients. READ MORE

Stocks to watch

Here's a look at the top stocks that may trade actively in today's session -
 
Avenue Supermarts: Promoters of the company will offload 2.28 per cent stake (14.8 million shares) through the offer for sale (OFS) route on Friday. The base price for the share sale has been set at Rs 2,049, a discount of 19.4 per cent to the current market price.
 
Earnings today: SpiceJet, ONGC, and Glenmark Pharma are among the 946 companies that are scheduled to report their Q3FY20 results today. READ MORE

Profit margins of dairy companies set to improve this year, says CRISIL

Profit margins of dairy companies are set to improve in the current financial year (ending March 31) due to stabilising of milk procurement prices in the current flush season, after a sharp increase in the past nine months.
 
A report from ratings agency CRISIL says operating earnings margins of dairy companies for 2019-20 are projected at four to five per cent, as compared to six per cent for the previous year. READ MORE

Valuation gap between Asian Paints and Berger Paints should narrow: Experts

There is little doubt that the two decorative paint majors — Asian Paints and Berger Paints — have done well in recent times despite muted consumption sentiment. This trend is expected to continue for now.
 
In the last six months, the two stocks have gained 19-60 per cent, against a 12 per cent rise in the Sensex. READ MORE

Today's picks: From Coal India to Infosys, hot stocks to watch

Bank Nifty
 
Current: 31,230 (fut: 31,202)
 
Target: NA
 
Stop long positions at 31050. Stop short positions at 31350. Big moves could go till 31550, 30650. Trend has a negative bias. READ MORE

Two stocks that Vaishali Parekh of Prabhudas Lilladher is bullish on

BUY MAHINDRA & MAHINDRA | CMP: Rs 533.60 | TARGET: Rs 585 | STOP LOSS: Rs 510
 
The stock has given a decent erosion from 590 levels to take support near 520 levels where a bottomo had been formed on a previous occasion. With the consolidation with a positive bias witnessed in the last 2-3 days, we anticipate further rise in the coming days. The RSI also has indicated a trend reversal to signal a buy. We suggest to buy and accumulate this stock for an upside target of Rs 585 keeping the stop loss of Rs 510. READ MORE

Top stock recommendations from Anand Rathi: Buy Deepak Nitrite, Mcdowell

MCDOWELL: BUY | TGT: Rs 801 | SL: Rs 649
 
The stock has provided a breakout from the ascending triangular pattern with a clear buy crossover in its daily as well as weekly momentum indicator MACD. READ MORE

Derivatives strategy on Torrent Pharmaceuticals by HDFC Securities

BUY TORRENT PHARMA FEB FUTURE @ Rs 2,090
 
Stop loss at Rs 2,040
 
Target of Rs 2,250
 
Rationale:
 
-- The stock price has registered new all time high with higher volumes
 
-- Higher tops and higher bottoms on the daily and weekly charts 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 8:07 am, Brent Crude Futures were at $56.22 per barrel-mark, down 0.21 per cent.

>> WTI Crude, meanwhile, was at $51.37 per barrel, down 0.1 per cent.

SGX Nifty

>> At 8:02 am, the Singaporean Exchange for Nifty Futures was at 12,183.50, up 33 points or 0.27 per cent, indicating a positive start for the indices.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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