MARKET WRAP: Sensex down 190 pts, Nifty below 12K-mark ahead of Budget FY21

Topics MARKET WRAP | Markets

Expectations ahead of Union Budget 2020, and December quarter earnings kept the Indian indices volatile on Friday, that logged steep fall during the fag end of the trading session. Market participants tracked the Economic Survey 2019-20 during the day which pegged the gross domestic product (GDP) growth rate for FY20 at 5 per cent, while forecast the GDP estimate for FY21 at 6-6.5 per cent. 

In the Economy Survey tabled today in the Parliament, the government said that it expects a pick-up in economic activity in the second half of the fiscal on the back of improved foreign direct investment (FDI) flows, build-up of demand pressure, positive outlook for rural consumption, rebound of industrial activity, steady improvement in manufacturing, growth in merchandize exports, higher build-up of foreign exchange reserves and positive growth rate of goods and services tax (GST) revenue collection. READ HIGHLIGHTS HERE

The government is expected to raise spending on infrastructure and cut some personal tax in its 2020/2021 budget, to spur consumer demand and investment, government sources and economists told news agency Reuters.

The benchmark S&P BSE Sensex ended the day near day's low, at 40,723.49 level, down 190.33 points or 0.47 per cent. State Bank of India, IndusInd Bank, and Bharti Airtel were the top gainers at close today, up between 1.6 and 2.3 per cent. Meanwhile, ONGC, PowerGrid, and TCS were the top laggards. In the intra-day trade, Sensex hit a low of 40,701.96 level.

On the NSE, the Nifty50 breached below the crucial 12,000-mark and settled at 11,961.65 level, down 74.15 points or 0.62 per cent. 

On the sectoral front, Nifty Metal index settled as the worst hit index, down over 2 per cent, after the World Health Organsiation (WHO) declared the Wuhan-originated coronavirus as global emergency. On the other hand, Nifty Realty index closed 1.3 per cent higher on the NSE after the Economic Survey 2020 pitched for real estate developers to lower property prices to clear inventory.

In the broader markets, the S&P BSE mid-cap index closed at 15,463.46 level, down 0.6 per cent, while the S&P BSE small-cap index was at 14,671.53, down 0.22 per cent.

GLOBAL MARKETS

World share markets fought to regain their footing on Friday as investors clutched at hopes that China could contain the coronavirus, even as headlines spoke of more cases and deaths, travel bans, evacuations and factory shutdowns.

Europe opened 0.3 per cent higher following a bounce in Tokyo.

MSCI’s broadest index of of world shares got back to flat. Asia-Pacific shares outside Japan extended their fall, however, dropping 0.4 per cent, and appeared set for their worst weekly loss in a year, of 4.6 per cent. 

Japan's Nikkei bounced 1 per cent, but was off 2.6 per cent for the week. Hong Kong's Hang Seng drifted 0.3 per cent lower and has shed 9 per cent in two weeks. 

(With inputs from Reuters)


3:43 PM IST

3:42 PM IST

3:42 PM IST >> The benchmark S&P BSE Sensex ended the day near day's low, at 40,723.49 level, down 190.33 points or 0.47 per cent >> On the NSE, the Nifty50 breached below the crucial 12,000-mark and settled at 11,961.65 level, down 74.15 points or 0.62 per cent

3:27 PM IST >> Tech Mahindra Q3 net profit at Rs 1,146 cr

3:21 PM IST

3:19 PM IST The Survey highlights the difficult fiscal situation ,and possible crowding out of private investors due to the increased market borrowing by the government. However, the survey also stresses the need for relaxation of fiscal deficit target for the current year to stimulate growth in the economy. In this background, it is expected that the fiscal deficit target for FY21 would also settle at a higher range. It is welcoming that the survey emphasizes the need for improving the business climate that would aid the economy to achieve the target of $5trillion.

3:17 PM IST Dabur has outperformed in a tough environment as its brand building initiatives are beginning to pay dividends. Mohit Malhotra is focusing on (a) Scaling power brands (8 brands with 65% revenue mix) which have a large addressable opportunity, (b) Deeper rural penetration led by higher direct reach (targeting 55k/60k villages in FY20/21) and (c) Innovation of new products. We remain optimistic for Dabur and expect co will be opportunistic in the rural recovery.

2:46 PM IST Shares of Marico slipped 6 per cent to Rs 318 on the BSE on Friday after it reported 5 per cent year-on-year (YoY) decline in its domestic business revenue at Rs 1,380 crore in December quarter (Q3FY20), amid the bleak consumption sentiment, especially in rural area. The India business recorded a volume decline of 1 per cent. READ MORE

2:40 PM IST -- Will be moving to 25% corp tax rate regime by next quarter   -- Bank saw very good recovery from Essar  -- One large HFC slipped in Q3 -- Have seen strong growth in retail advances

2:33 PM IST To spur economic growth and achieve $5 trillion economy, India needs to spend about $1.4 trillion on the infrastructure sector during FY2020-2025, the Economic Survey tabled in Parliament said on Friday. Investment in infrastructure is necessary for the economy, as power shortages, inadequate transport and poor connectivity affects overall growth performance, as per the Economic Survey 2019-20, tabled in Parliament by Union Finance and Corporate Affairs Minister Nirmala Sitharaman. READ MORE

2:22 PM IST An analysis of wealth creators by entrepreneurs shows that #WealthCreation benefits everyone - CEA @SubramanianKri Watch LIVE: https://t.co/pnPOHYHw4h#EconomicSurvey #WealthCreation pic.twitter.com/pXGLFIjdhz — PIB India (@PIB_India) January 31, 2020

LIVE UPDATES

Nifty snapshot at close


Sensex heatmap at close


Closing Bell

>> The benchmark S&P BSE Sensex ended the day near day's low, at 40,723.49 level, down 190.33 points or 0.47 per cent

>> On the NSE, the Nifty50 breached below the crucial 12,000-mark and settled at 11,961.65 level, down 74.15 points or 0.62 per cent

Earnings Alert | Tech M Q3 result

>> Tech Mahindra Q3 net profit at Rs 1,146 cr

MARKET CHECK | ONGC trades near day's low


MARKET COMMENT | Deepthi Mary Mathew, Geojit Financial Services on Economic Survey

The Survey highlights the difficult fiscal situation ,and possible crowding out of private investors due to the increased market borrowing by the government. However, the survey also stresses the need for relaxation of fiscal deficit target for the current year to stimulate growth in the economy. In this background, it is expected that the fiscal deficit target for FY21 would also settle at a higher range. It is welcoming that the survey emphasizes the need for improving the business climate that would aid the economy to achieve the target of $5trillion.

BROKERAGE RADAR | HDFC Securities on Dabur

Dabur has outperformed in a tough environment as its brand building initiatives are beginning to pay dividends. Mohit Malhotra is focusing on (a) Scaling power brands (8 brands with 65% revenue mix) which have a large addressable opportunity, (b) Deeper rural penetration led by higher direct reach (targeting 55k/60k villages in FY20/21) and (c) Innovation of new products. We remain optimistic for Dabur and expect co will be opportunistic in the rural recovery.

Marico slips 6%, hits 52-week low on disappointing December quarter results

Shares of Marico slipped 6 per cent to Rs 318 on the BSE on Friday after it reported 5 per cent year-on-year (YoY) decline in its domestic business revenue at Rs 1,380 crore in December quarter (Q3FY20), amid the bleak consumption sentiment, especially in rural area. The India business recorded a volume decline of 1 per cent. READ MORE

NEWS ALERT | Have seen strong growth in retail advances: SBI chief

-- Will be moving to 25% corp tax rate regime by next quarter
 
-- Bank saw very good recovery from Essar 

-- One large HFC slipped in Q3

-- Have seen strong growth in retail advances

Economic Survey calls for $1.4 trillion infra spending during FY2020-2025

To spur economic growth and achieve $5 trillion economy, India needs to spend about $1.4 trillion on the infrastructure sector during FY2020-2025, the Economic Survey tabled in Parliament said on Friday. Investment in infrastructure is necessary for the economy, as power shortages, inadequate transport and poor connectivity affects overall growth performance, as per the Economic Survey 2019-20, tabled in Parliament by Union Finance and Corporate Affairs Minister Nirmala Sitharaman. READ MORE

Wealth creation benefits everyone: CEA

MARKET CHECK | Sensex back in the green


NEWS ALERT | Indiabulls Real Estate board OKs merger of some residential and commercial projects of embassy properties


SBI Q3 result: Lender logs 41% YoY rise in profit at Rs 5,583 cr; NPAs dip

State Bank of India (SBI) Friday posted a 41.17 per cent year-on-year growth in the standalone net profit at Rs 5,583.36 crore for the December quarter of FY20 (Q3FY20). During the December quarter of FY19, the bank had posted a net profit of Rs 3,955 crore. Sequentially, the net profit grew 85.38 per cent, from a profit of Rs 3,012 crore reported in the September quarter of the current fiscal (Q2FY20). READ MORE

SBI gains 2% post Q3 results announcement


RESULTS UPDATE:: SBI Q3 net profit at Rs 5,583 cr; NII at Rs 27,779 cr

-- Net NPA at 2.65%
 
-- Gross NPA at 6.94% vs 7.19%

-- NII at Rs 27,779 cr

-- Gross NPA at Rs 1.59 lakh cr

Economic Survey pegs India's FY20 growth at 5%, expects rebound in FY21

The Economic Survey on Friday projected India's economic growth at 6 per cent to 6.5 per cent in the next financial year starting April 1, saying growth has bottomed out. The growth in 2020-21 compares to a projected 5 per cent expansion in 2019-20. Weak global growth impacting India as well as investment slowdown due to financial sector issues had led to growth dropping to a decade low in current fiscal, it said, adding 5 per cent growth projected for 2019-20 is the lowest it could fall for now. READ MORE

Market check


RESULTS CORNER:: Kansai Nerolac consolidated Q3 net profit up 9% at Rs 115.8 crore vs Rs 106.2 crore (YoY)

-- Revenue down 6.7% YoY to Rs 1,331.9 crore vs Rs 1,428.1 cr
 
-- Ebitda up 9.3% at Rs 197.7 cr
 
-- Ebitda margin 14.8% vs 12.7%

-- Other income at Rs 10.6 cr vs Rs 20.1 cr

Consumer discretionary stocks in focus; Orient Electric, Dixon hit new high

Shares of consumer discretionary goods & services (CDGS) companies were in focus with 11 stocks from the S&P BSE CDGS index hitting their respective 52-week highs on Friday in an otherwise weak market after reporting a healthy set of numbers in the December quarter. Of these, seven stocks – Amber Enterprises, Avenue Supermarts (DMart), Dixon Technologies, Info Edge (India), Jubilant FoodWorks, Orient Electric and Relaxo Footwears – hit their respective record highs today. READ MORE

NEWS ALERT | Govt tables Economic Survey 2020 in Parliament

-- FY21 GDP growth seen at 6-6.5%

-- FY21 expected to pose threat on fiscal front

IOC plans $1.4 bn investment to raise Bihar refinery capacity by 50%

The state-run company is raising its refining capacity to meet growing demand for petroleum products in the country.
 
India has emerged as a bright spot for refined fuel demand. READ MORE

Neemuchwala's Wipro stint marked by contract wins, strategic direction

Neemuchwala, who had been given the additional responsibility of MD in July last year, has cited 'family commitments' as the reason behind his departure from the Azim Premji-promoted firm. "The board has initiated a search to identify the next CEO READ MORE
Abidali Neemuchwala

Adani Green surges 5% in a weak market


Dabur India surges 5% after Q3 result beats Street estimates

Shares of Dabur India surged 5 per cent to Rs 502 on the BSE on Friday in an otherwise weak market after the company reported better-than-expected financial performance for December quarter (Q3FY20) led by domestic volume growth, international business and higher gross margins. In comparison, the S&P BSE Sensex was down 0.50 per cent or 205 points at 40,708 at 11:52 am. READ MORE

UltraTech is now Asia's second-most valuable cement company by m-cap

India’s cement makers continue to race ahead of their global peers in terms of market capitalisation (m-cap) and valuation ratios. The market leader, UltraTech Cement, is now Asia’s second-most valuable cement maker, behind China’s Anhui Conch Cement and ahead of Thailand’s Siam Cement PCL. READ MORE

Earnings Alert | Bank of India Q3 result

>> Net profit at Rs 105.5 crore

>> Net Interest Income (NII) at Rs 4,118 crore 

>> Net NPA at Rs 20,113 crore

>> Provisions at Rs 4,015 crore

>> Gross NPA at Rs 61,731 crore

Colgate continues its post Q3 results slide


HCL Tech down over 2%, near day's low


Tech Mahindra Q3 preview: Roadmap for 15% EBIT margin outlook for FY21 eyed

Tech Mahindra, the Pune-headquartered information technology (IT) services company, is expected to post up to 3.1 per cent quarter-on-quarter (QoQ) growth in revenue in constant currency (CC) terms for the quarter ended December 31, 2019. Partial consolidation of Born Group is expected to aid revenue growth by around 50 basis points (bps) QoQ. Tech Mahindra had acquired New York-based digital transformation agency Born in November last year. READ MORE

Sensex down 100 pts now


HUL Q3 preview: Weak rural growth may hit performance; Volumes to grow 4%

Rural growth, which was half of urban in Q2FY20, has seen no change in trajectory and continues to stay around the same level. One positive takeaway this quarter is that the liquidity crisis – which was hurting wholesalers and retailers – has eased somewhat, say analysts. READ MORE

MARKET UPDATE:: Nifty breaches 12,000


Shares bought today cannot be sold on the Budget day. Here's why

Finance Minister Nirmala Sitharaman is set to present the Union Budget for FY21 on February 1 amid expectations of relaxation in Long Term Capital Gains tax and Dividend Distribution Tax. Market regulator, Securities and Exchange Board of India (Sebi), has allowed the National Stock Exchange (NSE) and BSE to conduct regular trading on Saturday, February 1. READ MORE

BROKERAGE RADAR | Motilal Oswal Financial Services on Quess Corp

The stock trades at 23x one-year forward P/E, at a 42% deep discount to that of Teamlease. Given the overhang related to some of the aspects, we maintain our
Neutral rating. Our target price of Rs 590 implies 19x FY22E EPS.

BROKERAGE RADAR | Dolat Research on Dabur India

We have reduced our FY20E and FY21E EPS estimates to Rs 9.4 and Rs 10.2, to factor in delayed recovery in the domestic demand. We have introduced FY22E EPS estimates of Rs 11.3. Valuing the stock at 45x FY22E EPS to arrive at a TP of Rs 510. Maintain Accumulate; buy on dips.

Nifty CPSE index nears 4-year low; BEL tanks 9%, ONGC down 4%

Shares of Central Public Sector Enterprises (CPSEs) continued to reel under pressure with the Nifty CPSE index trading near four-year low after falling 3 per cent on the National Stock Exchange (NSE) on Friday. At 10:02 am, Nifty CPSE index, the top loser among thematic indices, was down 3 per cent at 1,720 on the NSE. The index has fallen below its previous low of 1,757.75, touched on August 23, 2019. It was trading at its lowest level since February 12, 2016, when it hit a low of 1,704 in intra-day deals. READ MORE

BROKERAGE RADAR | ICICI Securities on Pidilite Industries

At the CMP, the stock is trading at 51x FY21E and 44x FY22E earnings. While we remain structurally positive on Pidilite given its strong brand and balance
sheet condition, the tepid volume growth in the medium term would weigh on valuations. We maintain our HOLD rating on the stock with a revised target price of Rs 1,620/share.

Vedanta slips nearly 1% ahead of Q3 result


NEWS ALERT | Expect productive budget session of Parliament: PM Modi

-- Will continue to focus on empowering the poor: PM

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
RELIANCE POWER 1.67 -0.04 -2.34 17393598
VODAFONE IDEA 5.32 0.14 2.70 7328371
YES BANK 39.70 0.65 1.66 2743659
TATA MOTORS 179.60 -6.60 -3.54 1151669
MOTHERSON SUMI 135.95 -2.95 -2.12 569571
» More on Most Active Volume

Momentum picks by ICICI Securities


Economic survey likely to peg India's FY21 growth at 6-6.5%: Report

India's economic survey is seen projecting growth of 6 to 6.5 per cent in the next year starting April 1, boosted by a series of fiscal measures to revive demand that the government is likely to announce in the budget, a source said on Friday. India faces its worst economic slowdown in a decade. Growth slipped to 4.5 per cent in the July-September quarter, imperilling job prospects for millions of young people entering the workforce each year. READ MORE

Amber Enterprises soars 9% on robust Q3 earnings; zooms 47% in January

Shares of Amber Enterprises India soared 9 per cent to Rs 1,639 on the BSE on Friday after the company showcased a robust performance in the December quarter (Q3FY20) with operating earnings before interest, tax, depreciation and amortization (Ebitda) more than doubling at Rs 52 crore. It had clocked an operating Ebitda of Rs 26 crore in the same quarter last year. READ MORE

Motherson Sumi trades lower


ONGC dips over 3%


Wipro slips over 2% after Abidali Neemuchwala steps down as MD and CEO

Wipro slipped over 2 per cent in the morning trade on Friday after the company announced that Chief Executive Officer (CEO) and Managing Director (MD) Abidali Z Neemuchwala has decided to step down due to family commitments. Neemuchwala, 52, is leaving due to "family commitments” and will continue to hold office until a successor is appointed, said Wipro in a regulatory filing. READ MORE

MARKET UPDATE:: Sensex pares all opening gains


Bajaj Auto keeps up yesterday's momentum, up over 2% today


SECTOR WATCH:: Nifty Private Bank index top sectoral gainer, up 0.8 per cent


SBI Q3 preview: Profit could take hit due to DHFL, interest income may rise

“SBI is well poised for an earnings recovery, led by its steady operating performance at the pre-provisioning operating profit (PPoP) level, recoveries from large NCLT resolutions, and normalisation in credit cost to 1.3 per cent/1.1 per cent in FY21/22,” analysts at Motilal Oswal Financial Services said. READ PREVIEW HERE

Ahead of Q3 nos | ITC trades marginally higher

Cigarette-to-soap conglomerate ITC is expected to deliver sales, earnings before interest, tax, depreciation, and amortisation (EBITDA) and adjusted profit after tax (PAT) growth of 5.7 per cent, 7 per cent and 14.8 per cent YoY, respectively in 3QFY20. READ PREVIEW HERE


Buzzing | Bharti Airtel gains over 1.5%

>> Directorate General of Foreign Trade removes Bharti Airtel's name from 'denied entry list’
 

Hindustan Aeronautics trades 0.26% higher

>> Co said the government is planning to sell a 15 per cent in the company through an offer for sale, which could fetch about Rs 4,000 crore to the exchequer.


Bharti Infratel trades higher

>> The company on Thursday reported profit before tax (PBT) of Rs 1,068.8 crore for the quarter ended December 2019. It had posted PBT of Rs 1,037.5 crore in December 2018.


Result Impact | Tata Motors slides post Q3 earnings

>>  Tata Motors on Thursday reported a consolidated net profit of Rs 1,755.88 crore in Q3FY20, mainly helped by higher Jaguar Land Rover sales in China, but warned of general economic slowdown continuing to impact domestic auto industry. It, however, posted a standlone net loss of Rs 1,040 crore


Wipro erases 2% in early trade after CEO Abidali Neemuchwala steps down


Sectoral trends at NSE during Opening trade


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


Opening Bell


First Trade | Sensex begins with a positive tick


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 71.44/$ vs Thursday's close of 71.48 against the US dollar

Crompton surprises Street with Q3 profit; analysts remain bullish on stock

Crompton Greaves Consumer Electricals’ (Crompton Greaves’) better-than-expected profit came as a surprise to the Street. On a day when the leading indices were in the red, the stock scaled to its 52-week high before closing 3.6 per cent up. READ MORE


Bajaj Auto Q3 results: Profit beats estimates, aided by higher exports

Two-wheeler major Bajaj Auto put up a better-than-expected performance in the December quarter, driven by an uptick in exports, favourable exchange rates, and better product mix.
 
Exports — accounting for 43 per cent of volumes — rose 7 per cent, which helped offset the slowdown in the domestic segment. Domestic sales fell 13 per cent, largely on account of the sharp 16 per cent drop in motorcycle sales. READ MORE

Stocks to track today: Wipro, Tata Motors, SBI, HUL, ITC, Tech Mahindra, BEL

Wipro: Abidali Z Neemuchwala has quit as the chief executive officer and managing director of Wipro, the IT services company said on Friday. Neemuchwala, 52, has decided to step down due to "family commitments”, said the company in a press release. He will continue to hold office until a successor is appointed, it said in a regulatory filing. READ MORE
 
Tata Motors: Tata Motors on Thursday reported a consolidated net profit of Rs 1,755.88 crore in the three months ended December 2019, mainly helped by higher Jaguar Land Rover sales in China, but warned of general economic slowdown continuing to impact domestic auto industry. READ MORE

Abidali Neemuchwala quits as Wipro CEO and MD, cites 'family commitments'

Abidali Z Neemuchwala has quit as the chief executive officer and managing director of Wipro, the IT services company said on Friday.
 
Neemuchwala, 52, has decided to step down due to "family commitments”, said the company in a press release. He will continue to hold office until a successor is appointed, it said in a regulatory filing. READ MORE
Abidali Z Neemuchwala

Two stocks that Vaishali Parekh of Prabhudas Lilladher is bullish on

BUY REC LIMITED | CMP: Rs 148 | TARGET: Rs 165-170 | STOP LOSS: Rs 140
 
The stock has given a breakout above the previous peak resistance of 145 levels and has improved the bias with the RSI going strong and we anticipate a further upward move in the coming days. With the chart looking promising and decent volume participation witnessed, we recommend a buy in this stock for an upside target of 165-170 levels keeping the stop loss near 140. READ MORE

NEWS ALERT | China January Manufacturing PMI at 50: Reuters

>> Services PMI at 54.1, as against 53.5 in December

Bulk deals on NSE as on Thursday

Bulk deals on BSE as on Thursday

Oil Check

>> Oil bounced on short covering, having hit its lowest in three months as the global spread of the coronavirus threatened to curb demand for fuel, Reuters reported.

>> At 8:22 am, Brent Crude Futures were at $58.24 per barrel-mark, up 1.6 per cent. WTI CRude, meanwhile, was at $53.11 per barrel, up 1.8 per cent.

Rupee check


TRADE SET UP | SGX Nifty trades higher


Asian Markets check


US Markets check

(Source: Reuters)
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