Sensex ends 236 pts down, Nifty slips below 10,400 levels as PSU banks fall

Photo: Shutterstock.com
The benchmark indices ended 0.7% lower on Monday led by a steep fall in the key banking stocks. The Nifty PSU Bank index ended 2.5% down with Punjab National Bank, Union Bank of India and Syndicate Bank being the top losers.

The S&P BSE Sensex ended at 33,775, down 236 points while the broader Nifty50 index settled at 10,378, down 74 points.

Asian shares gained on Monday, joining a global recovery for equity markets as sentiment improved gradually from a recent shakeout that was sparked by fears of creeping inflation and higher borrowing costs.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent, having recovered more than 40 per cent of its losses from late January to last week's low.

Trading was slower than usual due to market holidays in the United States as well as Greater China.

Japan's Nikkei gained 2.0 per cent while US stock futures climbed gained 0.4 per cent in Asia on Monday.

 
(with wire inputs)

3:57 PM IST MARKET COMMENT: Jayant Manglik, President, Religare Broking   Nifty started the F&O expiry week on feeble note and breached its crucial support at 10400. The overhang of banking fraud at PNB continued to haunt the PSU banking pack which later joined by others as well. However, recovery in the last hour of the trade pared some losses.   Markets are seeing excessive volatility at present, citing local issues and the upcoming derivatives expiry will further fuel the same. We advise keeping stock specific trading approach and maintaining strict risk management rules to avoid unmanageable losses

3:40 PM IST Market watch (Image source: BSE)

3:37 PM IST Top Sectoral loser: Nifty PSU Bank cracks nearly 3%

3:35 PM IST Sectoral Trend

3:34 PM IST Sensex top losers and gainers

3:32 PM IST Market at close The S&P BSE Sensex ended at 33,775, down 236 points while the broader Nifty50 index settled at 10,378, down 74 points.

3:24 PM IST PNB fraud: Who's liable and why multiple audits failed to raise an alarm?   Punjab National Bank in an FIR filed with the Central Bureau of Investigation submitted that its in-house investigation had not found any role of chartered accountants, the statutory auditors and empanelled valuers in the alleged scam. That would be music to the ears of the five statutory auditors of the New Delhi-headquartered bank. However, it remains unanswered as to why multiple levels of audit failed to raise an alarm in the system. READ MORE

3:14 PM IST Two-year oil price curve likely to influence timing of Saudi Aramco IPO It's the burning question in the oil industry: when will Saudi Arabia pull the trigger on the Aramco stock market listing?   Many industry experts are focusing on the current level of oil prices. However another key consideration for Saudi officials in floating up to 5 per cent of the state oil producer is where they see prices in one to two years' time, two sources close to the IPO said. CLICK HERE FOR FULL STORY

3:03 PM IST Financial conditions deteriorate in Jan-Mar, says CII-IBA index An index mapping the country’s short-term financial conditions has plunged over 12 points for the fourth quarter of the current fiscal year ending March 31, as compared to the previous quarter.   The CII-IBA Financial Conditions Index stood at 53.2 for the fourth quarter (Q4) of 2017-18 as against 65.3 in the October-December period. READ MORE

2:56 PM IST Market Check S&P BSE Sensex 33,724.45 -0.84%   Nifty 50 10,342.40 -1.05%   S&P BSE 200 4,528.32 -1.01%   Nifty 500 9,126.10 -1.19%   S&P BSE Mid-Cap 16,373.41 -1.38%   S&P BSE Small-Cap 17,798.40 -1.32%

2:54 PM IST PNB fraud: What does it take to set up a high-performance RBI? A certain minimal state capacity in bank regulation and supervision is required, and we are repeatedly discovering this is absent. Some people see this as a question of public versus private banking. Private banks in India also have major difficulties with non-performing assets (NPAs), which suggests that the common factor of banking regulation is the root cause. READ MORE

2:51 PM IST Edelweiss on Torrent Pharma   We revise FY18/FY19E EPS down 16%/30% and maintain our 20x target multiple on FY20E EPS. With limited upside from current level, we downgrade to ‘HOLD’ with a revised target price of Rs 1,333 (Rs 1,390 earlier)

LIVE UPDATES

MARKET COMMENT: Jayant Manglik, President, Religare Broking
 
Nifty started the F&O expiry week on feeble note and breached its crucial support at 10400. The overhang of banking fraud at PNB continued to haunt the PSU banking pack which later joined by others as well. However, recovery in the last hour of the trade pared some losses.
 
Markets are seeing excessive volatility at present, citing local issues and the upcoming derivatives expiry will further fuel the same. We advise keeping stock specific trading approach and maintaining strict risk management rules to avoid unmanageable losses
Market watch (Image source: BSE)


Top Sectoral loser: Nifty PSU Bank cracks nearly 3%


Sectoral Trend


Sensex top losers and gainers


Market at close

The S&P BSE Sensex ended at 33,775, down 236 points while the broader Nifty50 index settled at 10,378, down 74 points.
PNB fraud: Who's liable and why multiple audits failed to raise an alarm?
 
Punjab National Bank in an FIR filed with the Central Bureau of Investigation submitted that its in-house investigation had not found any role of chartered accountants, the statutory auditors and empanelled valuers in the alleged scam. That would be music to the ears of the five statutory auditors of the New Delhi-headquartered bank. However, it remains unanswered as to why multiple levels of audit failed to raise an alarm in the system. READ MORE
Two-year oil price curve likely to influence timing of Saudi Aramco IPO

It's the burning question in the oil industry: when will Saudi Arabia pull the trigger on the Aramco stock market listing?
 
Many industry experts are focusing on the current level of oil prices. However another key consideration for Saudi officials in floating up to 5 per cent of the state oil producer is where they see prices in one to two years' time, two sources close to the IPO said. CLICK HERE FOR FULL STORY
Financial conditions deteriorate in Jan-Mar, says CII-IBA index

An index mapping the country’s short-term financial conditions has plunged over 12 points for the fourth quarter of the current fiscal year ending March 31, as compared to the previous quarter.
 
The CII-IBA Financial Conditions Index stood at 53.2 for the fourth quarter (Q4) of 2017-18 as against 65.3 in the October-December period. READ MORE
Market Check

S&P BSE Sensex 33,724.45 -0.84%
 
Nifty 50 10,342.40 -1.05%
 
S&P BSE 200 4,528.32 -1.01%
 
Nifty 500 9,126.10 -1.19%
 
S&P BSE Mid-Cap 16,373.41 -1.38%
 
S&P BSE Small-Cap 17,798.40 -1.32%

PNB fraud: What does it take to set up a high-performance RBI?

A certain minimal state capacity in bank regulation and supervision is required, and we are repeatedly discovering this is absent. Some people see this as a question of public versus private banking. Private banks in India also have major difficulties with non-performing assets (NPAs), which suggests that the common factor of banking regulation is the root cause. READ MORE
Edelweiss on Torrent Pharma
 
We revise FY18/FY19E EPS down 16%/30% and maintain our 20x target multiple on FY20E EPS. With limited upside from current level, we downgrade to ‘HOLD’ with a revised target price of Rs 1,333 (Rs 1,390 earlier)
Jewellery shares fall; Rajesh Exports, Renaissance Jewellery down over 6%

Shares of diamond, gems and jewellery companies under pressure falling by up to 10%, extending their past three days decline after the recent detection of a massive financial fraud in which diamond merchant Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch of Punjab National Bank (PNB). READ MORE
MUST READ PNB fraud: Why India's banking system is flawed and how we can fix it

To the collective dismay of the public, there is one more bank scam, which, not surprisingly, involves a public sector bank (PSB) — Punjab National Bank.
 
Nirav Modi, a flamboyant jeweller, and his uncle Mehul Choksi (a one-time favourite of foreign institutional investors) have allegedly pulled off a daring heist of over Rs 110 billion and run away to the US, leaving the country astounded by the audacity of the duo and the stupidity of bankers.

CLICK HERE FOR MORE
Sectoral Watch: Nifty PSU Bank cracks 5%


Over 8 PSUs to enter capital markets next year: DIPAM secy Neeraj Gupta
 
As many as 8 public sector companies, including Hindustan Aeronautics and RITES, will hit the capital markets next financial year as the government intends to unlock the real value of PSUs and bring in greater accountability.
 
Department of Investment and Public Asset Management (DIPAM) Secretary Neeraj Gupta said these initial public offerings (IPO) will be done in a "staggered manner" depending upon the size of the issuance. READ MORE
News of Singh bros siphoning money sparks SFIO probe on Fortis, Religare
 
The Serious Fraud Investigation Office (SFIO) will initiate a probe into alleged financial irregularities at Fortis Healthcare and Religare Enterprises, according to a senior official.
 
The corporate affairs ministry has been looking into the affairs of Fortis Healthcare and Religare Enterprises after recent reports that financial irregularities have emerged at the two companies. READ MORE
Market Check

 
S&P BSE Sensex 33,614.56 -1.16%
 
Nifty 50 10,322.75 -1.24%
 
S&P BSE 200 4,514.45 -1.31%
 
Nifty 500 9,125.50 -1.19%
 
S&P BSE Mid-Cap 16,348.02 -1.53%
 
S&P BSE Small-Cap 17,754.68 -1.56%

BSE smallcap: Bhushan Steel, Monnet Ispat & Energy top gainers, Gitanjali loses


BSE midcap: Vakrangee, Apollo Hospitals among top gainers; Union Bank of India top loser


PNB crisis: Chaos underlines financial services department's poor capacity

The department of financial services, a wing of the Union finance ministry, has a headcount of about 1,600 employees. On paper, this number may look impressive. But the overall staff strength of any department at the Centre, however, does not truly reflect its management or supervision capacity.
 
What matters more is the composition and quality of the staff. The department of financial services is no exception. A large portion of the 1,600 employees on the department’s roll consists of junior-level officers, clerks, and support staff. READ MORE
File photo: Reuters

Reliance, global tech firms to invest $9.3 billion in industrial area

Reliance Industries Ltd and global technology companies will invest 600 billion rupees ($9.34 billion) over 10 years to set up an integrated industrial area in Maharashtra, the company's chairman Mukesh Ambani said.

More than 20 global firms including Cisco, Siemens, Corning Inc., HP, Dell, Nokia and Nvidia had agreed to invest in the project with Reliance, India's largest listed company by market value, he said. READ MORE
MARKET STRATEGY: BNP Paribas
 
Key changes to our lists as outperformers drop out: Less IT, more financials and discretionary now Our major changes are therefore to our large cap value screens, in which the outperformers are replaced by underperforming financials and autos names and Aurobindo Pharma. Hero MotoCorp drops out of our growth list but remains in our value list. We add Tata Motors to our value list on recent underperformance.
 
Tata Steel enters both lists in place of Bank of Baroda, which is no longer part of Nifty. We make several mid cap changes on revised inputs (earnings, valuations), though our small cap list is mostly unchanged. 
 
Within our lists, our analysts are particularly positive on Bharti Airtel, ITC, Eicher Motors, Maruti, HDFC, IndusInd Bank, ICICI Bank, HDFC Bank, Repco, CanFin Homes, Reliance Industries, Petronet LNG and HCL Tech.
Edelweiss on Simplex Infra
 
Simplex Infrastructure’s (SINF) Q3FY18 revenue fell 2% YoY due to GST impact and client-related issues. However, better cost control led to PAT surging 69% YoY. Improving business prospects (reflected in healthy order inflow) has led to management now shifting focus from consolidation to growth—targeting 20% top-line growth going ahead. 
 
Moreover, green shoots are emerging on the working capital cycle front—an elongated cycle had led to higher leverage and constrained growth over the past couple of years. We believe, a diversified segmental presence and robust execution capabilities will drive ~40% PAT CAGR over FY18-20E. Maintain ‘BUY’ with SOTP-based target price of Rs 826 as we roll over to FY20E.
Anand Rathi on Atul Auto
 
We expect revenue to register a 13% CAGR over FY17-20 to Rs 6.82bn and EBITDA to clock a 20% CAGR. PAT would record a 23% CAGR to Rs 691m. We retain our Hold recommendation, with a target price of Rs 504 (16x FY20e EPS of Rs 31.5). Risks. Ban on diesel passenger vehicles in possibly developed states in the country, lower volume growth.
PNB fraud: Who's liable and why multiple audits failed to raise an alarm?
 
Punjab National Bank in an FIR filed with the Central Bureau of Investigation submitted that its in-house investigation had not found any role of chartered accountants, the statutory auditors and empanelled valuers in the alleged scam. That would be music to the ears of the five statutory auditors of the New Delhi-headquartered bank. However, it remains unanswered as to why multiple levels of audit failed to raise an alarm in the system. READ MORE
Emkay on Triveni Turbine
 
We expect the company to report 29% and 34% CAGR (FY18 - 20E) in revenues and PAT respectively. The stock currently trades at 25xFY20E earnings. We recommend ACCUMULATE with a target price of Rs147 based on 30xFY19E earnings.
Edelweiss on Texmaco Rail
 
Texmaco Rail & Engineering’s (Texmaco) Q3FY18 topline declined 14% YoY as insufficient wagon orders led to wagon revenue plummeting 73% YoY. EBITDA margin fell 20bps YoY to 4.1% due to operating de-leverage. Texmaco group is witnessing significant growth across verticals – wagons, coaches, locomotives and rail EPC, leading to overall order book rising to INR44.5bn (~INR36.2bn in Q2FY18). The company’s rich experience places it in ideal position to seize the burgeoning opportunities arising from overhaul of the Indian Railway (IR) network. Maintain ‘BUY’ with SoTP-based target price of Rs 140 as we roll over to FY20E.
Rakesh Jhunjhunwala-backed John Energy files papers for Rs 3.5-bn IPO

John Energy, backed by ace investor Rakesh Jhunjhunwala, has filed draft papers with markets regulator Sebi to raise an estimated Rs 3.5 billion (Rs 350 crore) through an initial public offering.
 
The IPO comprises fresh issuance of shares worth Rs 2.18 billion (Rs 218 crore) and an offer for sale of up to 16,77,744 scrips by the existing shareholders, including IL&FS Financial Services and India Rig Company, the draft red herring prospectus (DRHP) filed with Sebi showed. READ MORE
Singapore Exchange to launch new Indian derivatives before NSE deal ends

Singapore Exchange Ltd (SGX) said on Monday it will launch successor products to its flagship Indian equity index derivatives before the bourse's licence agreement with the National Stock Exchange of India (NSE) expires in August 2018.
 
The move comes days after India's three main bourses unexpectedly announced they would stop licensing their indexes to overseas exchanges, news which hit SGX's shares as brokers cut the bourse's earnings estimates. READ MORE
Market Check

S&P BSE Sensex 33,827.70 -0.54%
 
Nifty 50 10,392.00 -0.58%
 
S&P BSE 200 4,547.08 -0.60%
 
Nifty 500 9,174.90 -0.66%
 
S&P BSE Mid-Cap 16,467.13 -0.81%
 
S&P BSE Small-Cap 17,902.71 -0.74%

KPR Mill gains on share buyback plan

KPR Mill has rallied 8% to Rs 730 on the BSE in intra-day trade in otherwise weak market after the textile company said that its board will meet on Thursday to consider share buyback proposal. READ MORE
PSU Banks extend fall; 11 out of 22 banks hit 52-week lows

Shares of public sector banks were continue under pressure with the 11 out of 22 listed state-owned bank hit their respective 52-week lows on the BSE as financials succumbed to selling pressure on worries of the Rs 114 billion fraud case at Punjab National Bank (PNB).
 
Including PNB, Allahabad Bank, Bank of Maharashtra, Corporation Bank, Dena Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union Bank of India and Untied Bank of India have hit their respective 52-week low on the BSE in intra-day trade on Monday. READ MORE
Sectoral Trend


Sensex gainers and losers



JK Paper, West Coast Paper, others set to script record profits in FY18

In spite of an expanding digital economy, JK Paper, West Coast Paper and International Paper are set to script their most profitable performance in this financial year.
 
Profits at these paper manufacturers had surpassed the 2016-17 numbers in the first nine months of 2017-18, with improved efficiency, a favourable pricing environment and reduction in interest expense. READ MORE
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Street signs: PSU bank shares fall, soothing balm from Vakrangee, and more

The Nifty PSU Bank index, which slid 8.4 per cent last week to 3,189, is likely to extend losses if technical analysts are to be believed. Chartists say the index could drop another 5-10 per cent if it drops below 3,100. READ MORE
Gitanjali Gems nears record low; stock tanks 46% in four days
 
Gitanjali Gems is locked in lower circuit for the third straight trading days, down 10% at Rs 33.80 on BSE with no buyers were seen on the counter. The stock is trading close to its record low of Rs 29.95 touched on March 1, 2016 on BSE in intra-day trade. READ MORE
Market check

S&P BSE Sensex 33,810.07 -0.59%
 
Nifty 50 10,404.75 -0.45%
 
S&P BSE 200 4,541.12 -0.73%
 
Nifty 500 9,169.50 -0.72%
 
S&P BSE Mid-Cap 16,425.09 -1.07%
 
S&P BSE Small-Cap 17,857.49 -0.99%

Sectoral Watch: Nifty PSU Bank slips over 2%
Rotomac owner Kothari denies rumours: I am in India and not running away
 
Following Nirav Modi's footsteps, another defaulter Vikram Kothari, the promoter of Rotomac Pens, was alleged to have left the country. Kanpur based Vikram Kothari had taken a loan of more than Rs 8 billion from five state-owned banks — Allahabad Bank, Bank of India, Bank of Baroda (BoB), Indian Overseas Bank, and Union Bank of India READ MORE
Edelweiss on Hexaware
 
Hexaware reported Q4CY17 revenue at USD156.1mn, up 1.3% in USD and cc terms and above Street’s 0.6% forecast. EBITDA margin declined 150bps QoQ to 15.9%, below Street’s 16.4% estimate due to seasonal furloughs, wage hikes and start-up investments in new deal wins. Key highlights: 1) revenue and EPS growth guidance of 10-12% for CY18; 2) return of INR8 to shareholders through mix of dividend and buy-back; and 3) formulated a new three-pronged business strategy - automate everything, cloudify everything and transformation of customer relationship. 
 
We believe Hexaware’s automation-led IMS & BPS offerings will enable it to gather revenue momentum better than most of its peers. However, at CMP, we believe the stock is fairly valued. Hence, we maintain ‘HOLD’ with revised target priice of Rs 317 (14x CY19E).
Reliance Securities on Bank of Baroda
 
The Bank’s new management is gradually reinstating confidence through major changes in operating structure, which may start yielding desired outcome. As we believe that improved outlook on asset quality and operating performance front augur well for the Bank, we maintain our BUY recommendation on the stock with an unrevised Target Price of Rs207 based on 1.4x FY19E Adjusted book value.
Kotak Securities on NBCC
 
The company expects strong revenue growth in FY19E as most of the redevelopment projects would contribute meaningfully in the year. We have cut our earnings estimates for FY18E and FY19E factoring in weak execution in 9MFY18 and introduce FY20E estimates. The stock is presently trading at PE of 36.7x and 24.6x based on FY19E & FY20E EPS of Rs 5.6 and Rs 8.4 respectively. We recommend ACCUMULATE on the stock (Vs Sell) with revised target price of Rs 229 (Vs Rs 250 earlier).
Kotak Securities on NMDC
 
We have revised our FY18E estimates upwards to Rs10.1 (earlier Rs8) and lowered our FY19E estimates to Rs10.3 (earlier Rs11.1), as we continue to maintain our cautious stance on iron ore outlook. At current valuation of 8.3x/8.2x FY19E/FY20E EV/EBITDA, the stock is fairly valued. We recommend SELL (earlier REDUCE) on NMDC, with a target price of Rs130. We have assigned value to the investment in steel plant at 50% discount.
Edelweiss on Welspun India
 
Welspun India’s (WLSI) Q3FY18 revenue, at INR14.0bn (4% above estimate), fell 7% YoY impacted by customer destocking and reduced incentives post GST implementation. While lower cotton prices supported gross margins, EBITDA margin improved a mere 40bps QoQ to 18.1% (Est: 20.5%) impacted by operating deleverage. Management mentioned over long term EBITDA margin of 20% is sustainable. As we introduce FY20E, we build in 6%/10% improvement in revenue/PAT and believe all concerns about growth and margins are factored in our expectations. Rolling forward, we maintain our target EV/EBITDA multiple of 7.0x, giving us a target price of Rs 84 (Rs 83 earlier). Maintain ‘BUY’
Bhushan Steel up 20% on talks of Tata Steel become highest bidder

Bhushan Steel is locked upper circuit of 20% at Rs 53.85 on BSE in early morning trade after media report suggested that the Tata Steel become the highest bidder for the company assets. READ MORE
MUST READ PNB Rs 114-bn fraud: Is it a threat or opportunity for investors?
 
When there's a crisis in an industry that's too important to fail, is it a threat or opportunity for investors? Analysts of Indian banking will be wondering about the answer. The non-performing assets (NPA) crisis has had a crippling effect. Banks have become cautious about fresh lending as bad debts mounted.
 
They have also been trying to hide the extent of the problem. Raghuram Rajan started the process of forcing banks to recognise NPAs when he was the Reserve Bank of India (RBI) governor and the central bank has stepped up its efforts to force NPA recognition. CLICK HERE FOR FULL STORY
Nifty PSU Bank top loser


Sectoral Trend


Sensex losers and gainers


Market at open

At 9:17 am, the S&P BSE Sensex was trading at 34,940, down 70 points while the broader Nifty50 was ruling at 10,414, down 38 points.
Corporate News Digest
 
DLF will focus on selling ready-to-move-in flats worth Rs 150 billion over the next 3-4 years and launch new projects for sale only after reaching advanced stage of construction.
 
Tata Steel emerges as the top bidder for Bhushan Steel: Sources
 
Religare Enterprises plans to raise up to Rs 1,200 cr via combination of equity and debt
 
PNB looking to monetize Real estate assets including office space in Delhi worth over Rs 5,000 cr.
 
Reliance Industries unit to acquire 65% stake in Indian Film Combine for Rs 1,105 cr.
 
Power Grid emerges as lowest bidder for Rs 1,000 cr transmission project (PTI).
 
KPR Mills To consider buy back of shares on 22nd February
 
PVR Says ‘amicably resolved’ dispute with Elan group over development of multiplexes in Gurugram
 
(Source: Nirmal Bang report)
Markets: Pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 34,084.37 +73.61 +0.22
 
S&P BSE SENSEX 50 10,933.70 +28.83 +0.26
 
S&P BSE SENSEX Next 50 34,372.50 +108.96 +0.32
 
S&P BSE 100 10,867.06 +29.22 +0.27
 
S&P BSE Bharat 22 Index 3,631.21 +6.43 +0.18


(Source: BSE)
MARKET COMMENT: Hemang Jani, Head - Advisory, Sharekhan
 
The PNB scam has dampened the sentiment for banking sector and the overall markets in general, as the amount and exposure to various banks is still uncertain. Indian market may underperform in an otherwise strong global market till there is clarity on resolution of these recent developments
PNB scam: UCO Bank has $412 mn in exposure to fraudulent transactions

India's state-run UCO Bank said it has $411.82 million in exposure to fraudulent transactions carried out at Punjab National Bank (PNB). READ MORE

Nirav Modi team had a free run at PNB; CBI quizzes Firestar's Vipul Ambani
 
The two detained Punjab National Bank officials under the Central Bureau of Investigation’s (CBI’s) custody said Nirav Modi’s team was given “unauthorised access” to PNB’s computer systems for a “commission” on every letter of undertaking (LoU) issued, said a probe agency source.
 
On Saturday, the CBI had arrested three people, including PNB’s former deputy manager Gokulnath Shetty, the bank’s single-window operator Manoj Kharat, and Hemant Bhat, authorised signatory for Nirav Modi’s firms. A special court remanded all the three accused in 14 days’ CBI custody. CLICK HERE FOR FULL STORY
Trading ideas for Monday

BUY POWER GRID
CMP: Rs 195.55
TARGET: Rs 215
STOP LOSS: Rs 188
 
The stock has witnessed a gradual correction from the peak of Rs 226 to slide to make the low at Rs 190 levels and has shown a good support. The stock has made a good recovery and is on the rise and along with supporting favourable indicators like the RSI which is on the rise indicating a positive bias and also the MACD which is in a positive trend, the stock looks attractive. READ MORE
Nifty outlook by Prabhudas Lilladher

The daily and weekly trend continues to show weakness in indices with selling seen in almost all sectors. Nifty has closed lower below 50 DMA & sentiment is now turning nervous for bulls. The support for the week is seen at 10,260 while resistance is seen at 10,600. Bank Nifty has still lot of room for downslide to a level of 24,600-24,500.

We recommend a cautious approach and a corrective phase for market.
From Graphite India to Apcotex Industries, Q3 numbers tell their own story
 
At a time when equity gyrations keep investors guessing, it might be better to seek refuge in some of the numbers reported by select companies. Graphite India: The company has reported the kind of third quarter numbers that will prompt you to exhale on your glasses, wipe those and read again. Consider the ebit (earnings before interest and tax) of the last five quarters: Rs 400 million, Rs 330 million, Rs 450 million, Rs 1,370 million and Rs 5,190 million READ MORE

Illustration: Binay Sinha

Index provider MSCI slams Indian bourses
 
Global index provider MSCI has slammed Indian exchanges’ decision to terminate licensing and data-feed agreements with their global counterparts. MSCI, whose indices, widely used by passive investors, help channel billions of dollars into Indian markets, said the concerted announcement by three domestic exchanges was “anti-completive” and would restrict access to the Indian market READ MORE
Stock ideas for the day
 
BATA- BUY
CLOSE – Rs 700
TARGET – Rs 750/775
BATA closed weekly in negative territory. It has wave-V pending on monthly chart. It’s still trading above 40 DMA. Its managed to find support near 200 DMA. One can BUY with stop loss of 756 for the target of 750/775 levels in short term
 
Fund flow tracker
 
FPIs pull out $1 bn from Indian markets in Feb in wake of global sell-off. This is against the total inflow of over Rs 137.8 billion by foreign portfolio investors in January, the latest data with depositories showed CLICK HERE FOR MORE
Sebi eases access norms for investment by foreign portfolio investors
 
The Securities and Exchange Board of India (Sebi) has opened up the Indian capital markets to clients of global private banks, which can invest in stocks without having to go through registration or compliance requirements.
 
Until now, foreign banks were allowed to do propriety trades only. However, now they have been allowed to invest in domestic securities on behalf of their clients READ MORE
F&O watch
 
Selling by FIIs at higher levels has been witnessed, which clearly indicates short buildup and discomfort in the market. The range of 10300-10600 levels will remain crucial in the current expiry and the move is expected to remain volatile with negative movement, as indicated by option open interest concentration. If Nifty falls below the 10300 mark, it could correct to 10000 levels on the back of further selling. On bounce, the index will face strong resistance at 10550-10600 levels.
 
(Source: SMC Global)
SGX Nifty

SGX Nifty was trading at 10,459, up 0.1% from the previous close.
Wall Street
 
On Wall Street, the S&P 500 rose marginally on Friday to mark its biggest weekly increase in five years. The Dow Jones industrial average closed 19.01 points higher at 25,219.38.
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