An across-the-board buying helped frontline indices to settle with over a per cent gains on Wednesday, thus snapping their four-day losing streak. Further, investor sentiment also got a boost after the finance minister said the government would announce measures to tackle the financial fallout from the coronavirus outbreak amid a fall in new cases in China.
The S&P BSE Sensex rallied 429 points or 1 per cent to end the day at 41,323. Reliance Industries (RIL), HDFC, HDFC Bank, HUL, Bajaj Finance and ITC contributed the most to the index's gains.
Shares of Vodafone Idea jumped as much as 48 per cent to Rs 4.49 on the BSE on the back of heavy volumes on report that the government is unlikely to invoke bank guarantees for now. The stock eventually settled at Rs 4.19 apiece on the BSE, up over 38 per cent.
On the NSE, the Nifty index settled at 12,126, up 133 points or 1 per cent.
Market breadth remained in the favour of advances as out of 2,707 companies traded on the BSE, 1,520 advanced and 1,009 declined while 178 remained unchanged.
In the broader market, the S&P BSE MidCap index gained over 1 per cent to 15,632 levels while the S&P BSE SmallCap index added 204 points or 1.4 per cent to settle at 14,672-mark.
On the sectoral front, Nifty Pharma index gained the most - up over 2 per cent to 8,389 levels, followed by Nifty Media and Nifty FMCG.
A decline in the number of new coronavirus cases in China and mounting expectations for more policy stimulus boosted global stock markets on Wednesday, helping ease some of the alarm caused by an Apple revenue warning.
A pan-European equity index rose 0.4 per cent to test recent record highs and futures indicated a stronger open for Wall Street. Earlier, an MSCI index of Asian shares outside Japan rose 0.5 per cent. Japan’s Nikkei index gained almost 1 per cent. Chinese mainland shares closed in the red, however.
In commodities, oil prices rose with Brent gaining a seventh straight day, amid broad optimism as new coronavirus cases fell for a second day in China and concerns rose over supply after a US move to cut more Venezuelan crude from the market.
MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services
Positive cues were witnessed in the market on hopes that the government is planning to consider some relief measures for the ailing telecom players. On the global front, there is a decrease in new virus cases and close to 80 per cent of the Chinese enterprises are back to work indicating a possible economic recovery.
SECTOR WATCH | All sectoral indices on the NSE end higher
MARKET AT CLOSE | Top gainers and losers on the S&P BSE Sensex
The S&P BSE Sensex ended 429 points or 1 per cent higher at 41,323 while NSE's Nifty rallied 133 points or 1 per cent to settle at 12,126.
MARKET CHECK | Top gainers on the BSE at this hour
HUL, Bajaj Finance, Nippon Life and 22 other BSE500 stocks hit record high
Shares of Hindustan Unilever (HUL), Bajaj Finance, and Nestle India from the S&P BSE Sensex hit their respective record highs on Wednesday. Besides, ICICI Securities, Nippon Life India Asset Management, AU Small Finance Bank, CreditAccess Grameen, JK Cements, Ratnamani Metals and Navin Fluorine International were among 25 stocks from the S&P BSE 500 index that touched new highs today. READ MORE
BUZZING STOCK | Wockhardt jumps 9%
BUZZING STOCK | Oil India surges 4%
Index Contributors at this hour
BUZZING STOCK | Nippon Life India jumps nearly 9%
NEWS ALERT | Man Ind bags export orders worth Rs 300 crore in MENA region
Vodafone Idea reverses losses, jumps 48% on heavy volumes
In the past seven trading days, the stock has tanked 42 per cent after the Supreme Court dismissed the petitions of telcos seeking a staggered option to pay their Adjusted Gross Revenue (AGR) related dues. READ MORE
NEWS ALERT | Govt to restrict export of 12 formulation of drugs from India: sources to CNBC TV18
>> Restrictions to remain in place till factories in Hubei, China do not resume
>> Govt to soon come up with a statement citing the names of the 12 formulations
NEWS ALERT | MAS Financial Service declares interim dividend of Rs 6/sh: BSE filing
Saving 'big trade deal with India' for later, says Trump ahead of visit
The US and India could sign a "trade package" during the visit, according to media reports.
Asked whether he expects a trade deal with India before the visit, Trump said, "We're doing a very big trade deal with India. We'll have it. I don't know if it'll be done before the election, but we'll have a very big deal with India." READ MORE
BROKERAGE RADAR | Centrum Broking on Consumer goods
Rural growth continued to lag urban counterpart, staying at 0.5x urban growth. However, bigger companies continue to do well underpinned by their distribution heft. One classic sign of slowdown viz. dip in the number of new launches was also evident. Additionally, liquidity crisis continues to dent wholesalers and retailers, thereby exerting pressure on trade pipeline. Although visibility on demand pick up is dim at this juncture, once payouts under the direct transfer scheme start reaching a wider base, farmers sees higher incomes on the back of better monsoon, improved rabi crop and agri inflation, things should improve, in our view.
BUZZING STOCK | Vodafone Idea extends gains
PMS players experiment with pay-only-for-profit model, skip fixed fees
Investors typically paid portfolio management service (PMS) providers an annual fixed fee of around two per cent of the money they managed. They also paid them a share of profits made. This was usually around 20 per cent of gains above a certain threshold. This ‘two and 20’ model is giving way to a 'zero and 20' model, according to industry experts. READ MORE
NEWS ALERT | Expect renewal of contract with Sonatrach, Equinor for US crude supply to India: sources to CNBC TV18
>> Renewal of contract at attractive terms for Indian OMCs
NEWS ALERT | Aim to sell BPCL by September 30: govt official
Are Indian imports worth $70.4 bn from China at risk due to coronavirus?
In their latest report, analysts at CLSA have pegged the total Indian imports from China in financial year 2018-19 (FY19) at $70.4 billion. A deep-dive in this import basket from China suggests Indian pharma, chemicals and electronic companies could see a disruption in supply chain in case of a prolonged issue with production activity in China. That apart, commodity plays, i.e. metals, and upstream and downstream oil companies, will witness the impact of lower global demand impacting commodity prices, wrote wrote Shaun Cochran, global head of research at CLSA in a co-authored note with Vikash Kumar Jain, an analyst at the firm. READ MORE
Tech View: Sensex, Nifty see volatile sessions, but trend remains positive
Markets have remained volatile over the past few sessions, mainly owing to stock-specific actions with respect to quarterly numbers, Budget proposals and coronavirus outbreak on the global front. . Here's a look at how frontline indices S&P BSE Sensex and Nifty, and other major indices look on the technical charts. READ MORE
Bandhan Bank hits fresh 52-week low; down 37% from Oct high
In the past three months, Bandhan Bank has underperformed the market by falling 27 per cent, as compared to a 2 per cent rise in the S&P BSE Sensex. It has slipped 37 per cent from its 52-week high level of Rs 650, touched on October 29, 2019. READ MORE
BROKERAGE RADAR | Emkay Global Financial Services on LIC Housing Finance
We maintain our estimates and Sell rating with a TP of Rs 371, corresponding to 1x FY22E P/adj. Book. We would be closely monitoring any movement toward the merger. The biggest risk to our merger thesis is technical/regulatory risks, if any, arising over the proposed merger.
Coronavirus impact | ONGC tumbles to 15-yr low on low oil prices
Concerns over decline in crude demand led by the spread of coronavirus and in turn fall in oil prices have further weakened Street sentiment, which had remained soft post the domestic oil and gas producing major’s muted December quarter (Q3) performance. READ MORE
NEWS ALERT | SpiceJet to launch 20 new domestic flights from March 29
The rise and rise of Prestige Estates: How the realty firm bucked the trend
At the end of last year, Irfan Razack, chairman and managing director, Prestige Estates Projects, a real estate firm in Bengaluru, made it to the list of new-minted billionaires. The company’s share prices soared over 2019 and the Razack family’s 70 per cent stake in it ballooned to a value of Rs 8,800 crore. READ MORE
Illustration: Ajay Mohanty
IRCTC scales fresh record high; zooms 445% against issue price
With today’s rally, IRCTC has zoomed 445 per cent as against its issue price of Rs 320 per share on the BSE. The retail investors had received shares at a discount of Rs 10 per share at Rs 310 per share. READ MORE
BROKERAGE RADAR | Centrum Broking on CRISIL
We expect earnings traction as Greenwich Acquisition is set to boost overall revenue. The acquisition can deepen relationships with buy-side customers aiding cross sell of other segment products. Valuation is attractive and we maintain our target multiple at 30.9x and roll forward to CY21E EPS. We maintain our BUY rating and raise our TP to Rs 1,917 (vs Rs1717 earlier). Risks to our call include global economic slowdown impacting overall revenue; margin pressure.
BROKERAGE RADAR | ICICI Securities on VIP Industries
We remain cautious on the near-term outlook, amid headwinds faced by the luggage industry. Owing to its healthy balance sheet (D/E: 0.1x, NWC days: 85) and strong brand patronage among consumers, VIP’s business model has the inherent ability to tide over tough market conditions. Furthermore, owing to its strong manufacturing capacity (Bangladesh: soft luggage, India: hard luggage), it is well placed compared to its peers. Factoring in the performance of YTDFY20, we revise our earnings estimate downwards for FY20, FY21E. Therefore, we downgrade our recommendation from BUY to HOLD with a revised target price of Rs 505 (31.0x FY22E EPS, earlier target price: Rs 540).
BROKERAGE RADAR | Edelweiss Securities on SAIL
SAIL’s relative performance is likely to remain subdued owing to high-cost structure and the proportion of semis. Additionally, high leverage and capex commitments are likely to keep cash flows constrained. The stock is trading at 9x FY21E EBITDA. We maintain ‘REDUCE/SU’ with a TP of Rs 40 on June 2021E BV.
BROKERAGE RADAR | Edelweiss Securities on Lemon Tree Hotels
While our EBITDA is unchanged, factoring in higher depreciation/interest run rate, we adjust FY20/21 EPS down 10%/8% respectively. In light of Lemon Tree’s best-in-class parameters and growth visibility, we maintain ‘BUY’ on the stock with a DCF-based TP of Rs 70 (Rs 67 earlier) while rolling forward the valuation to March 2021E.
BROKERAGE RADAR | Edelweiss Securities on Ipca Lab
The timelines for USFDA re-inspection and lifting of the import alert remain uncertain while other levers are fully priced in. The stock is trading at 22x FY21E EPS. Maintain ‘HOLD/SP’ with a TP of Rs 1,340 (20x FY21E EPS).
PFC-REC merger stuck, Centre reaching out to PSUs to pick up stake
The merger of India’s two leading non-banking financial companies (NBFCs) in the power sector is yet to conclude even after a year of Power Finance Corporation (PFC) taking over the central government’s stake in Rural Electrification Corporation (REC). At the same time, several global lenders to PFC and REC have raised an alarm over the delay and the structure of the company after the merger. READ MORE
Shree Cement to replace YES Bank in Nifty50 from Mar 27; surges 6%
The cement maker pipped Dabur and Godrej Consumer Products (GSPL), who were among the front-runners for index inclusion, to join Ultratech Cement as cement manufacturers in the bluechip company index. READ MORE
Tata Motors slips over 3%
MARKET COMMENT | V K Vijayakumar, Chief Investment Strategist, Geojit Fin Services on FM's view on Corona Virus
Even though the impact of the Corona virus on Indian economy has been limited so far, there is a risk that industries like pharma and electronics may be seriously impacted if the disruption in supply chains persists for long. It is important that the government take precautionary steps to look for alternative sources of supply. Steps like waiver of import duties may be considered since imports from alternative sources will be costlier.
Aurobindo Pharma surges 19% as Unit IV receives EIR with VAI staus from FDA
Shares of Aurobindo Pharma surged 19 per cent to Rs 594 on the BSE in early morning deal on Wednesday after the company’s Unit IV received Establishment Inspection Report (EIR) with Voluntary Action Initiated (VAl) status from the US health regulator. READ MORE
BUZZING STOCK | Bandhan Bank hits 52-week low
AUM for gold ETFs up 30% in one year as investors rekindle interest
Domestic investors are rekindling their interest in gold exchange-traded funds (ETFs), amid a sharp rally in prices of the yellow metal. In January, gold ETFs offered by mutual funds (MFs) saw net inflows of Rs 202 crore, the most since December 2012. In the previous 12 months, the average flows into these investment vehicle was a paltry Rs 16 crore, shows data provided by Value Research. READ MORE
India to harvest record wheat production of 106.21 MT in 2019-20: Report
Wheat production has been rising year-on-year and the previous record of 103.60 million tonne was achieved during the 2018-19 crop year (July-June).
Wheat is the main rabi (winter) crop, harvesting of which will begin from next month. READ MORE
Market check | Sensex ticks 400 pts up
YES BANK drops over 1.5% on exclusion from Nifty
BUZZING STOCK | Aurobindo Pharma surges over 13%
SECTOR WATCH | All sectoral indices on the NSE trade in the green
FIRST TRADE | Top gainers and losers on the S&P BSE Sensex
At 09:17 am, the S&P BSE Sensex was trading over 300 pts higher at 41,215 levels while the NSE's Nifty50 index reclaimed 12,000 level to trade at 12,087, up 94 points or 0.79 per cent.
Stocks to watch: YES Bank, Shree Cement, HCL Tech, Infy, Avenue Supermarts
Here's a look at the top stocks that may remain in focus today -
YES Bank, Shree Cement: Shree Cement will replace Yes Bank in the benchmark Nifty 50 index, NSE said in a release. The changes will be effective from March 27. Shree Cement would join Ultratech Cement as cement manufacturers in the bluechip company index.
HCL Tech: IT services firm HCL Technologies Ltd. on Tuesday said it will open a Global Delivery Center in Hartford, Connecticut to offer digital transformation services to clients in smart manufacturing, insurance, aerospace, and defense industries. READ MORE
Nomura on BHEL
We cut our FY21F/22F EPS estimates by 35% on lower sales and weaker EBITDA margin recovery assumptions. We value BHEL at 5.8x (unchanged) FY22F EV/EBITDA (- 1 SD from long-term mean to factor in the weak thermal outlook) and deduct Rs 5/share towards unfunded pension defined benefit employee liabilities to arrive at our target price of Rs 34. This implies ~6% downside, and we reiterate Reduce.
Momentum Picks by ICICI Securities
Top gainers and losers on S&P BSE Sensex during Pre-open
Market at Pre-open
Market at Pre-open
Weekly stock picks by Religare Broking
Infosys has been gradually rebounding for the past three months or so, after a sharp decline from its record high. It has not only filled the downward gap on the daily chart but has also sustained above that zone which indicates that the bulls are back in control. The IT index has recently formed a new record high, adding to the buoyancy. We thus suggest initiating fresh longs as per the recommended levels. READ MORE
Coronavirus may hit production schedules in India and UK, warns Tata JLR
JLR CEO Ralf Speth said the company has enough supplies to ensure production for the next two weeks, but from the third week onwards it remains risky and could even mean plant closures.
"We have flown parts in suitcases just to make sure we have all the parts but for the third week, we still have parts missing," said Speth. READ MORE
Shree Cement pips Dabur and Godrej Consumer to replace Yes Bank in Nifty
The Kolkata-based cement maker has pipped Dabur and Godrej Consumer Products (GSPL) who were among the front-runners for index inclusion. Among the three companies, Shree Cement has the highest free-float market capitalisation, thanks to a Rs 3,000-crore fund raise in November. READ MORE
Trailing payouts catch Sebi attention, regulator examining divergence
The Securities and Exchange Board of India (Sebi) could take a re-look at the trail commission structure of mutual funds (MFs). This is part of its examining instances of divergence between first-year and subsequent commission payouts in some MF schemes, according to people aware of the matter. READ MORE
Today's picks: Hero to Tata Motors, hot stocks to watch
Current: 11,992 (fut: 12,019)
Stop long positions at 11,920. Stop short positions at 12,120. Big moves could go till 12,250, 11,750. Trend seems negative. A long Feb 27 11,900p (47), short 11,800p (26) could gain 10-15 if the index drops below 11,900. READ MORE
Stock picks by Vaishali Parekh of Prabhudas Lilladher
BUY IGL | CMP: 471 | TARGET: 530 | STOP LOSS: 450
The stock has corrected well from the peak of 534 levels and has taken support near 460 levels which is also where the significant 50DMA lies and we anticipate further upside move in the coming days. The RSI is also near about the oversold zone and the probability of a strong revival is high. We suggest to buy and accumulate this stock for an upside target of Rs 530, keeping the stop loss of Rs 450. READ MORE
Stock recommendations from HDFC Securities
GO LONG IN NIFTY WITH 11,900 STOPLOSS; TGT 12,200
On Tuesday, Nifty recovered more than 100 points from the bottom of 11,908 in the second half of the trade. This move has resulted in a bullish “Hammer” candlestick pattern on the daily charts. Nifty has retraced 50 per cent of the entire rally seen from 11,614 (3rd Feb 2020) to 12,246 (14th Feb 2020). Considering the primary bullish trend, we recommend initiating longs in Nifty for the upside target of 12,200, keeping stop loss at 11,900. READ MORE