MARKET WRAP: Sensex recovers 300 points from day's low to settle at 35,809

Benchmark indices ended marginally lower on Friday led by a decline in HDFC, HDFC Bank, Sun Pharma and Axis Bank.

The S&P BSE Sensex ended at 35,809, down 67 points or 0.19 per cent, while the broader Nifty50 index settled at 10,724, down 22 points or 0.20 per cent. 

Among the sectorial indices, the Nifty Pharma index ended 3.1 per cent lower led a fall in Glenmark and Lupin. The Nifty Metal index settled 2.07 per cent lower weighed by JSW Steel and Welspun Corp. 

Shares of Dr Reddy’s Laboratories fell 30 per cent to Rs 1,873 apiece in the intra-day trade, also their 52-week low on the National Stock Exchange (NSE), after media reported Jefferies, in its research note, said that the Form 483 issued by US Food and Drug Administration (US FDA) to drug firm’s Bachupally plant contains four repeat observations out of the total 11 observations. The stock ended 4.17 per cent lower at Rs 2,556.

In the broader market, the S&P BSE MidCap index ended 167 points, or 1.18 per cent lower at 13,941, while S&P BSE SmallCap index fell 111 points, or 0.83 per cent to settle at 13,253.
Global Markets

Asian stocks fell on Friday, retreating from four-month highs after data out of China raised concerns over deflationary pressures building in the world’s second-biggest economy.

 
MSCI’s broadest index of Asia-Pacific shares outside Japan, which had scaled a four-month high midweek on factors including expectations for reduced US-China trade tensions, was down 1 per cent. The Shanghai Composite Index lost 0.8 per cent following Friday’s discouraging data. Japan’s Nikkei dropped more than 1 per cent and South Korea’s KOSPI shed 1.45 per cent.

(With Reuters input)

3:51 PM IST Market slid due to broad based selling across sectors as rising yield and weak rupee cast cloud over investor’s sentiment. Volatility may continue due to lack of positive triggers in the domestic market while rising oil prices will impact domestic macros in the near term. Global markets turned negative due to obstacles in the US-China trade deal.

3:39 PM IST

3:37 PM IST

3:34 PM IST The S&P BSE Sensex ended at 35,809, down 67 points or 0.19 per cent, while the broader Nifty50 index settled at 10,724, down 22 points or 0.20 per cent.

3:22 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME DILIP BUILDCON 447.50 37.65 9.19 198420 REDINGTON INDIA 80.90 6.55 8.81 106610 BHARAT DYNAMICS 245.00 19.35 8.58 41391 INFIBEAM AVENUES 38.00 2.55 7.19 3539233 ADANI POWER 39.55 2.40 6.46 1557075 » More on Top Gainers

3:08 PM IST Gold regained its glitter with prices surging by Rs 310 to Rs 34,310 per 10 gram at the bullion market here Friday on increased buying by jewellers coupled with a firming trend overseas, according to the All India Sarafa Association. Silver also rose Rs 170 to Rs 40,820 per kg, supported by increased offtake by industrial units.   Bullion traders said sentiment in the domestic market turned upbeat on the back of increased buying by jewellers and retailers and a firming trend in global markets. READ MORE

2:48 PM IST Emami promoters create pledge on 48 lakh shares (1% equity) on February 11

2:40 PM IST The most serious attack to occur since Prime Minister Narendra Modi came to power in 2014 will add to the political uncertainty ahead of national elections this year and may cause at least a temporary reaction in the markets. At least 40 security personnel died in the attack, which Modi described as “despicable” in a tweet on Thursday evening. Jaish-e-Mohammed, a United Nations-listed terror organization, claimed responsibility, according to Asian News International. READ MORE

2:27 PM IST Reserve Bank of India (RBI) Governor Shaktikanta Das shrugged off liquidity concerns pertaining to non-banking financial companies (NBFCs) and ruled out an asset quality review in the immediate future, saying such a move might not be well-received by the market. READ MORE

2:15 PM IST

2:01 PM IST

1:51 PM IST Shares of mid-cap companies were under pressure with the S&P BSE MidCap index hitting a four month low of 13,863, down 2 per cent on the BSE after a decline in pharmaceuticals, financials and consumer discretionary goods & services stocks. The index hit its lowest level since October 26, 2018, was 2.3 per cent away from its 52-week low of 13,539 touched on October 9 in intra-day trade. READ MORE

LIVE UPDATES

Vinod Nair, Head of Research, Geojit Financial Services on today's markets

Market slid due to broad based selling across sectors as rising yield and weak rupee cast cloud over investor’s sentiment. Volatility may continue due to lack of positive triggers in the domestic market while rising oil prices will impact domestic macros in the near term. Global markets turned negative due to obstacles in the US-China trade deal.

Sectoral gainers and losers of the day on NSE


Gainers and losers of the day on S&P BSE Sensex


Market at close

The S&P BSE Sensex ended at 35,809, down 67 points or 0.19 per cent, while the broader Nifty50 index settled at 10,724, down 22 points or 0.20 per cent.

Top gainers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
DILIP BUILDCON 447.50 37.65 9.19 198420
REDINGTON INDIA 80.90 6.55 8.81 106610
BHARAT DYNAMICS 245.00 19.35 8.58 41391
INFIBEAM AVENUES 38.00 2.55 7.19 3539233
ADANI POWER 39.55 2.40 6.46 1557075
» More on Top Gainers

Gold climbs Rs 310 on jewellers' buying, global cues

Gold regained its glitter with prices surging by Rs 310 to Rs 34,310 per 10 gram at the bullion market here Friday on increased buying by jewellers coupled with a firming trend overseas, according to the All India Sarafa Association. Silver also rose Rs 170 to Rs 40,820 per kg, supported by increased offtake by industrial units.
 
Bullion traders said sentiment in the domestic market turned upbeat on the back of increased buying by jewellers and retailers and a firming trend in global markets. READ MORE

NEWS ALERT

Emami promoters create pledge on 48 lakh shares (1% equity) on February 11

Market reaction: Pulwama attack may push rupee to 72-mark in the short term

The most serious attack to occur since Prime Minister Narendra Modi came to power in 2014 will add to the political uncertainty ahead of national elections this year and may cause at least a temporary reaction in the markets. At least 40 security personnel died in the attack, which Modi described as “despicable” in a tweet on Thursday evening. Jaish-e-Mohammed, a United Nations-listed terror organization, claimed responsibility, according to Asian News International. READ MORE

RBI governor Shaktikanta Das rules out asset quality review of NBFCs

Reserve Bank of India (RBI) Governor Shaktikanta Das shrugged off liquidity concerns pertaining to non-banking financial companies (NBFCs) and ruled out an asset quality review in the immediate future, saying such a move might not be well-received by the market. READ MORE

Nifty Metal index is trading over 2% lower


Market check


BSE Midcap index hits four-month low; Page Ind, Glenmark falls over 7%

Shares of mid-cap companies were under pressure with the S&P BSE MidCap index hitting a four month low of 13,863, down 2 per cent on the BSE after a decline in pharmaceuticals, financials and consumer discretionary goods & services stocks. The index hit its lowest level since October 26, 2018, was 2.3 per cent away from its 52-week low of 13,539 touched on October 9 in intra-day trade. READ MORE

Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
DR REDDY'S LABS 2453.00 -216.30 -8.10 392131
PAGE INDUSTRIES 22107.40 -1857.10 -7.75 4590
CAN FIN HOMES 246.65 -19.70 -7.40 84567
ASHOK LEYLAND 78.45 -6.05 -7.16 2956914
GLENMARK PHARMA. 565.95 -42.30 -6.95 187795
» More on Top Losers

India in stimulus mode: Funds bet big on short-tenure bonds post rate cut

Short-tenor bonds are in demand in India, thanks to rising expectations for more interest-rate cuts. This week’s data showing further easing in inflation has raised the odds of the central bank adding to last week’s cut as early as April just when investors including HDFC Standard Life Insurance Co. are concerned that the looming supply of sovereign debt will push up long-end yields. READ MORE

Top gainers and losers on S&P BSE Sensex


Karvy Stock Broking on Bata India

Bata has subsequently increased new offerings and investments in branding. Premiumisation and youth connect is expected to enhance footfalls across the retail network and spur overall revenue growth. In the event of premium valuations, we maintain our rating to “HOLD”, assigning 40x of FY21E EPS with a revised target price of Rs. 1407 per share with an upside potential of 12%.

Reliance Securities on Mangalam Cement

Continued cost pressure despite freight rebate dragged the performance. However, better realisation was a positive surprise. While we believe that commissioning of 11MW WHRS from Apr’19 may aid MGC to save in savings in Power & Fuel cost, this will be not enough for MGC to witness a remarkable improvement in its unitary EBITDA. Hence, a meaningful realisation improvement is the most important for the company. We maintain our HOLD recommendation on the stock with an unrevised Target Price of Rs210 (6x EBITDA FY21E). 

Prabhudas Lilladher on Nestle India

Nestlé’s 4QCY18 nos show 4.8% decline in EBIDTA and 4.3% decline in PAT despite close to double digit volume growth. Although margins have suffered due to higher adspends on brand building and peaked out gross margins, we expect improved performance in coming quarters led by 

1) improved demand growth momentum on the back of rural package 
2) Cluster based strategy to go deeper and increase sales in interiors 
3) strong innovation and renovation with high success rates. 

We believe gains from benign inputs are over and estimate 60-70bps contraction in gross margins, however higher base of adspends will enable 90bps margin expansion, 14% EBIDTA and 16% PAT CAGR over CY18-20. We value the stock at 46xCY20 EPS and arrive at target price of Rs11059 (Rs111129 earlier). Retain Accumulate.

With domestic slowdown, global order wins are helping L&T stay on track

Since the start of the week, Larsen & Toubro has been adding to its order book in both the domestic and international business. While its orders at home in power, water treatment and hospitals are incremental, the announcement of a $1 billion (over Rs 7,000 crore) order for a gas field development in Algeria is considered the most significant.
 
According to CLSA analysts, this order means L&T will beat its 2018-19 order book growth forecast, at a time when domestic order flow is declining. READ MORE

NIfty Pharma index down over 4.5%


MARKET CHECK


Dr Reddy's Labs turns volatile; stock rebounds 32% from days' low on NSE

Shares of Dr Reddy’s Laboratories turned volatile falling 30 per cent to Rs 1,873 apiece, also its 52-week low on the National Stock Exchange (NSE), after media reported Jefferies, in its research note, said that the Form 483 issued by US Food and Drug Administration (US FDA) to drug firm’s Bachupally plant contains four repeat observations out of the total 11 observations. At 11:14 am; Dr Reddy’s Laboratories was trading 7 per cent lower at Rs 2,474, recovering 32 per cent from its early morning low on the back of heavy volumes on the NSE. READ MORE

Web Exclusive | Foreign investors await general election outcome: Chris Wood of CLSA

Foreign investors are likely to wait for the outcome of the general elections scheduled for April/May 2019 before committing fresh money to Indian equities, writes Christopher Wood, managing director and equity strategist at CLSA in his weekly newsletter, GREED & fear. Bond and currency markets in India, he says, seem unalarmed by the fiscal deterioration given that the tax collections rose just 7 per cent year-on-year in the first nine months of the financial year 2018–19 (9MFY19). Investors, according to him, seem to be taking the view that populist actions should be tolerated in the short-term if they help get Narendra Modi re-elected in the April-May general elections. READ MORE
Photo: Shutterstock.com

Bharat Dynamics soars 16% on robust December quarter results

Shares of Bharat Dynamics soared 16 per cent to Rs 263 apiece on the BSE in an otherwise weak market after the company reported a robust net profit of Rs 188 crore in December 2018 quarter (Q3FY19). The state-owned defence company had a profit of Rs 6.18 crore in the year-ago quarter. The company’s operational revenue during the quarter under review grew 26 per cent to Rs 1,038 crore against Rs 822 crore in the corresponding quarter of previous fiscal. READ MORE

Dr. Reddy's Labs recovers 30% from day's low


Page Industries extends fall; stock slips 9% in two sessions post Q3 result

Shares of Page Industries extended their Thursday's fall and slipped 7 per cent to Rs 22,265 apiece on the BSE in early trade on Friday. The stock has fallen 9 per cent in the past two trading sessions. After two quarters of dismal performance, the Indian maker of Jockey men’s and women’s innerwear clocked 18.9 per cent rise in net revenues to Rs 738 crore, and 22.2 per cent growth in net profit to Rs 102 crore in December 2018 (Q3FY19) quarter, compared to the year-ago period. READ MORE

Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
DR REDDY'S LABS 2447.95 -221.35 -8.29 176174
MMTC 26.35 -1.55 -5.56 94347
PAGE INDUSTRIES 22810.00 -1154.50 -4.82 2436
GLENMARK PHARMA. 580.85 -27.40 -4.50 66140
UFLEX 205.00 -9.45 -4.41 7732
» More on Top Losers

Share of sovereign funds in FPI at its highest for FY19, but holdings fall

The share of sovereign wealth funds (SWFs), as a proportion of total foreign portfolio investments in Indian equities, is at its highest for the current fiscal at 5.74 per cent. However, the value of their investment was Rs 1.54 trillion as of January; lower than the Rs 1.56 trillion in December. It is also lower than the Rs 1.7 trillion as of August. The reason for the higher share, despite declining absolute holdings, is the overall decrease in foreign investor holdings. SWFs are considered to be more stable than other sources of foreign investment such as hedge funds. READ MORE

Elevated credit spreads not good for growth: UTI AMC's Vetri Subramaniam

Vetri Subramaniam, group president & head (equity), UTI Asset Management Company, in an interview with Hamsini Karthik, says the borrowing plan announced in the Budget may strain resources. Click here to read the interview
Vetri Subramaniam, group president & head (equity), UTI Asset Management Company

ONGC jumps 6% post Q3 nos


Market check


Nifty Pharma index is trading over 2% lower


DHFL is trading over 2% lower


STOCK IMPACT

Jet Airways up 1.5% in early trade as ashare holders led by SBI to become the largest shareholders


Sectoral trend on NSE


Opening gainers and losers on S&P BSE Sensex


Market at open

At 9:15 AM, the S&P BSE Sensex was trading at 35,873, down 3 points, while the broader Nifty50 was ruling at 10,744, down 2 points.

Market at pre-open


Rupee opening

Rupee opens at 71.23/$ vs its previous close of 71.16 per US dollar

Lenders in pilot's seat at Jet Airways; Goyal's stake may reduce to 22%

Lenders led by State Bank of India (SBI) will become the largest shareholders in Jet Airways in a move to bail out the country’s second-largest domestic airline. The Naresh Goyal-led company made the disclosure to the stock exchanges on Thursday after its board approved a draft resolution plan comprising conversion of lenders' debt into 114 million equity shares at an aggregate consideration of Rs 1, issue of fresh interim loan to the airline and changes in governance structure and board composition. READ MORE

Commodity outlook by Tradebulls Securities

Buy Lead
TARGET: Rs 148
Stop loss: Rs 139
 
Lead on the daily chart has taken support at its 38.2% retracement taken from its swing high of 153.50 and low of 135.30. Increase in cancelled warrant and support from retracement does indicate that we may see a bounce in Lead. Lead also has taken support and is trading above its 50DMA which again further confirms a positive trend. RSI_14 has reversed from 45 levels so we would recommend long with expected move till 148 and stop loss of 139 closing basis. READ MORE

Derivative strategy on JSW Steel by HDFC securities

Stop loss: Rs 276
Target: Rs 295
 
Rationale:
 
-- Long build up in JSW Steel Futures’ yesterday, where we have seen a rise in Open Interest with a price rise of 3.50%.
 
-- After forming a double bottom at 257 odd levels earlier this week, stock price reversed northward to close above its 5 and 20 day SMA with higher volumes.
 
-- Momentum Indicators and Oscillators like RSI and MACD are showing strength in the stock.
 
-- Metal as a sector seems to be bottomed out and looking good for the short term.

Today's picks:

ZEEL 
 
Current price: Rs 433
Target price: Rs 441
 
Keep a stop at Rs 430 and go long. Add to the position between Rs 438 and Rs 440. Book profits at Rs 441.
 
BPCL 

Current price: Rs 316
Target price: Rs 309
 
Keep a stop at Rs 320 and go short. Add to the position between Rs 311 and Rs 312. Book profits at Rs 309. READ MORE

Rupee check

The rupee weakened by 36 paise on Thursday to close at 71.16 per US dollar amid firming crude oil prices and persistent foreign capital outflows.

Oil check

US oil prices rose on Friday, gaining for a fourth day on hopes of further supply cuts by major exporters, despite uncertainty about US-China trade talks.
 
US West Texas Intermediate (WTI) crude futures were at $54.79 per barrel, up 40 cents, or 0.7 per cent, from their last settlement. They rose 51 cents, or 0.95 per cent, on Thursday. International Brent crude oil futures had yet to trade, after closing up 1.5 per cent in the previous session.

SGX Nifty

Nifty futures on Singapore Exchange (SGX) were trading at 10,790, down 3 points or 0.03 per cent in early trade.
 

Asian Markets check

Asian stocks slipped on Friday after grim US retail sales figures raised fresh doubts about the strength of the US economy, offsetting optimism on trade talks between the United States and China.
 
Japan's Nikkei dropped 1.1 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.25 per cent in early trade, with South Korea's Kospi shedding 1.0 per cent.

Wall Street check

On Wall Street, the Dow Jones Industrial Average fell 103.88 points, or 0.41 per cent, to 25,439.39, the S&P 500 lost 7.3 points, or 0.27 per cent, to 2,745.73 and the Nasdaq Composite added 6.58 points, or 0.09 per cent, to 7,426.96.
 
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