Market updates: Indices close in green; Nifty above 11,700

Closing Bell:

With the benchmark indices opening flat and then turning volatile through the day, the NSE Nifty index closed at 11,724.05, posting a jump of 62.20 points or 0.53 per cent.

The top gainers in the 50-pack index were Asian Paints (jumping 6.34 per cent) and Nestle India (4.99 per cent) Meanwhile, the top losers were: Infratel (6.11 per cent) and Yes Bank (4.62 per cent).

In the sectoral indices list, PSU Bank was under pressure and closed at drop of 2.46 per cent, followed by IT and Pharma. Other sectoral indices were in green.

 

The 30-pack BSE Sensex jumped back positive after a major drop on Saturday. The index closed at 39,832.37, a jump of 96.84 points or 0.24 per cent.

Asian Paints gained 6.26 per cent whereas ITC lost 5.28 per cent. Around 935 advanced, 1,471 declined, and 176 remained unchanged.

 

TVS Motor sales down 17% in January

 

TVS Motor Company on Monday reported a 16.88 per cent decline in total sales in January at 2,34,920 units.

The company, which primarily makes two-wheelers and three-wheelers, had sold 2,82,630 units in January 2019, TVS Motor said in a statement.

READ MORE ABOUT THE TVS MOTOR SALES REPORT AND STOCK HERE

The stock of TVS Motor was trading at Rs.471.80 a piece, with a jump of 7.85 points, on NSE.

 

 

 

Market Updates:

NSE Nifty is trading at 11,710.70, posting a jump of 48.85 or 0.42 per cent. The Nifty PSU bank sectoral inidce has been under pressure since morning trade. It has lost around 2.27 per cent. The other sectoral indice in red are: Pharma and IT.

 

The BSE Sensex, which has been hoping between red and green since morning, is currently trading at 39,865.3, with a jump of 129.78  or 0.33 per cent. In the 30-pack index, Nestle India gained 5.91 per cent and Asian Paints gained 5.49 per cent. Whereas, ITC lost 5.41 per cent, followed by Hero Motor Corp (-3.28 per cent). Around 921 stocks advanced, 1451 declined and 173 remained unchanged.

 

 

 

 

Amara Raja Batteries Q3 net up over 25%

 

Amara Raja Batteries Limited has posted a profit of ₹164.41 crore for the third quarter ended December 31, 2019, against ₹130.89 crore logged in the corresponding quarter of last year.

The battery major reported a revenue of ₹1,747.81 crore in Q3 FY20, against ₹1,694.66 crore for the corresponding quarter, registering a growth of 3 per cent.

The earnings per share (EPS) for Q3 FY20 was at ₹9.63.

Click here to read about Amara Raja Batteries's result and share prices

 

 

Mirae Asset Emerging Bluechip: A fund for all seasons

Investors looking to take exposure to large- and mid-cap stocks and build wealth in the long term (five to seven years) can invest in the Mirae Asset Emerging Bluechip Fund.

The fund has been the top performer over the past few years in the category.

It used to focus mostly on mid-cap stocks earlier, but after SEBI’s new norms on classification of funds, the fund has invested a majority of its corpus in large-cap stocks.

The scheme has been steadily outperforming its peers since the last time we reviewed its performance, about six months ago.

The fund also has a five-star rating on BusinessLine Portfolio Star Track MF Ratings . Its mandate of investing a minimum 35 per cent in large-cap stocks, up to a maximum of 65 per cent and a minimum of 35 per cent in mid-cap stocks helps the fund manager invest in stocks across the listed space to extract decent returns.

However, investors in this fund must show patience to build their wealth.

READ MORE ABOUT MIRAE ASSET EMERGING FUND HERE

 

 

Mahindra & Mahindra Financial Services to raise ₹310 cr via NCDs

Non-banking finance firm Mahindra & Mahindra Financial Services on Monday said it will raise up to ₹310 crore through non-convertible debentures (NCDs).

In a filing to BSE, the company said that the duly authorised committee has approved “the allotment of 3,100 secured redeemable non-convertible debentures of the face value of ₹10,00,000 each, at par, aggregating to ₹310 crore.”

The deemed date of maturity of the debentures is February 3, 2023.

 The shares of Mahindra & Mahindra Financial Services were trading at ₹357.10 apiece on BSE, up 1.41 per cent from the previous close.

Godrej Properties Q3 net up 9% at ₹45 cr

 

Realty firm Godrej Properties on Monday reported a 9.2 per cent increase in its consolidated net profit at ₹45.49 crore for the quarter ended December 31, 2019.

Read more about the Godrej Properties' Q3 result here

Shares of Godrej Properties were trading at ₹1,068 a piece on BSE, up 7.96 per cent from the previous close.

 

 

 

 

 

Petronet LNG Q4 net falls 16% to ₹440 crore

Petronet LNG has reported a ₹440-crore profit for the fourth quarter of financial year 2018-2019. This is 15.87 per cent lower than the ₹523 crore bottom-line reported by the company in the same quarter of the last financial year.

The company’s board of directors has recommended a 45 per cent dividend at ₹4.5 for each equity share of ₹10 each.

The profits during the quarter under review have been hit by an inventory loss of ₹119 crore. READ MORE HERE

This is how Petronet LNG's stocks are trading after this news:

 

Chinese stocks crash as coronavirus outbreak infects markets

Chinese stocks collapsed on Monday with hundreds of firms plunging by the maximum 10 per cent as investors got their first chance in more than a week to react to a barrage of bad news from the spiralling coronavirus outbreak.

The benchmark Shanghai Composite Index ended the morning session down 8.13 per cent, or 241.87 points, at 2,734.66, while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, was down 8.30 per cent, or 145.78 points, to 1,611.04. Hong Kong went into the break 0.09 per cent, or 23.78 points, up at 26,336.41 on bargain-buying after being battered last week. READ MORE HERE

Ashok Leyland sales down 40% in January, stocks fall by 1%

Hinduja group flagship firm Ashok Leyland on Monday reported 39.9 per cent decline in total vehicles sales at 11,850 units in January.

The company had sold 19,741 units in the same month last year, Ashok Leyland said in a regulatory filing.

Total domestic vehicles sales stood at 10,850 units in January against 18,533 units in the year-ago period, registering a decline of 41.4 per cent. READ MORE HERE

The stock of Ashok Leyland fell by one per cent over this news. It is trading at ₹76.15 on NSE and ₹ 76.20 on BSE.

 

Shares recover after Saturday's sharp fall on budget woes

File photo

 

Shares came off early losses to trade higher on Monday as investors bought into stocks that fell sharply on Saturday, while the rupee weakened in its first trading session since the federal budget announcement.

The broader NSE Nifty 50 index rose 0.66 per cent to 11,738.80 by 10:34 am (IST), while the benchmark S&P BSE Sensex advanced 0.47 per cent to 39,926.27.

The rupee weakened about 0.16 per cent to 71.52 per dollar.

The benchmark 10-year bond rose to 99.5650 rupees, compared with its Friday close of 98.9200 rupees, pushing the yield down 9 bps, as Finance Minister Nirmala Sitharaman did not announce any additional borrowing for the current fiscal year in her budget speech on Saturday.

Auto and consumer stocks drove the equities market on Monday, with their index rising 1.2 per cent. The Nifty FMCG index rose 1.28 per cent, led by heavyweight stocks Hindustan Unilever and Nestle India, which topped the Nifty 50 index.

Bharat Petroleum Corp and Asian Paints were also among the top gainers on the Nifty, rising 3.2 per cent and 4.1 per cent, respectively as oil prices slumped due to worries about lower demand in virus-hit China.

Cigarettes-to-software conglomerate ITC Ltd was among the top losers, falling 2.9 per cent as the budget proposed raising taxes on cigarettes. - Reuters

 

 

 

LIC policy will retain its sovereign guarantee: FM

FM Nirmala Sitharaman

 

Finance Minister Nirmala Sitharaman on Sunday assured nearly 30 crore policyholders of Life Insurance Corporation (LIC) that their interests would be protected when the government dilutes its stake in the insurance behemoth.

“We are bringing an initial public offering (IPO) of LIC, and not selling it completely. There will be no change in the ownership,” she said at a post-Budget media interaction.

The Budget has proposed an IPO for LIC, through which the government will dilute its stake in it. Allaying policyholders’ concerns, the Minister said LIC policies would not lose their sovereign guarantee.  Read more here

 

 

Manufacturing activity hits near 8-year high as orders jump: Report

India's manufacturing activity expanded at its quickest pace in nearly eight years in January, with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years. If sustained, the improvement in business conditions could point to a gradual economic recovery in coming months, as forecast by analysts in a  Reuters  poll last month, after growth slowed to a more than six-year low in the July-September quarter.

The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December. It was the highest reading since February 2012, and above the 50-mark separating growth from contraction for the 30th straight month. READ MORE HERE

Take a look at how NSE Nifty50 sectoral indices are moving today:

 

 

Related Stories

Zydus Cadila gets DGCI nod for diabetes treatment drug

READ NOW

 

Drug firm Zydus Cadila on Monday said that it has received approval from Drug Controller General of India (DGCI) for Saroglitazar Magnesium used in treatment of diabetes.

“Zydus Cadila has received the approval from the Drug Controller General of India for use of Saroglitazar Mg in the treatment of type II diabetes mellitus as an add-on therapy with Metformin,” the drug firm said in a filing to BSE.

Type II diabetes is a condition in which cells cannot use blood sugar (glucose) efficiently for energy.

In India, the drug was previously approved in 2013 for the treatment of hypertriglyceridemia and diabetic dyslipidemia .

More than one million patients are being treated with Saroglitazar (Lipaglyn).

Rupee slips 34 paise to 71.66 against USD in early trade

The rupee opened on a weak note and declined by 34 paise to 71.66 against the US dollar in opening trade on Monday, after the Budget 2020 disappointed market participants.

Forex traders said rupee weakened amid concerns of fiscal slippage and rising coronavirus outbreak fears.

Finance Minister Nirmala Sitharaman in her Budget 2020 speech pegged the country’s fiscal deficit at 3.8 per cent for the current fiscal, compared to the earlier target of 3.3 per cent of GDP.

The rupee opened weak at 71.62 at the interbank forex market and then fell further to 71.66, down 34 paise over its last close.

The rupee had settled at 71.32 against the US dollar on Friday.

Read more here

 

 

 

The 30-pack Sensex has been volatile since opening. It started with a drop and then gained 100 points. For now, the indice is trading at 39,890.33, positing a jump of 154.80 points or 0.39 per cent.

Take a look at how the stocks of this indice are trading:

 

 

 

Rupee open:

 

Rupee slips 34 paise to 71.66 against US dollar in early trade.

ITC in focus

The stocks of ITC today are in focus. It has on BSE index has lost 4.91 per cent in the early trade. On NSE also the stock is in red, posting a change of 3.13 per cent. Read to know the reason for the recent drop.

 

 

Asian shares drop, commodities sink on virus fears after Lunar New Year break

Asian shares stumbled on Monday, oil skidded and commodities on Chinese exchanges plunged on their first trading day after a long break on fears the coronavirus epidemic will hit demand in the world's second-largest economy.

Aiming to head off any panic, the Chinese government took a range of steps to shore up an economy hit by travel curbs and business shut-downs because of the epidemic, including cutting its key interest rate.

Despite the measures, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4 per cent, on track for its eighth straight day of losses.

Read more:

 

Opening Bell:

The benchmark indices today opened flat.

The broader index NSE NIfty 50 opened 11,641.45, with a drop of 20.40 points or 0.17 per cent.

Meanwhile, the 20-pack BSE Sensex opened with a drop of 50.19 points or 0.13 per cent, at 39,685.34.

 

 

Weekly Trading Guide: RIL breaches series of supports

RIL (₹1,383.3)

 

The stock of Reliance Industries (RIL) slumped 9 per cent last week as the overall market witnessed selling pressure, closing with a loss for the second week in a row. The stock breached the key support at ₹1,400. That support is significant as it coincides with the 50 per cent Fibonacci retracement level of the previous bull trend. The 21-DMA has crossed below the 50-DMA, potentially turning the medium-term trend bearish. The downtrend looks strong and the probability of a decline from the current levels is high. The daily RSI is maintaining its downward trajectory and the MACD indicator in the daily chart extends further into the negative region, indicating considerable bearish momentum. Hence, traders can take a bearish view and can short the stock on rallies with a stop-loss at ₹1,460. The nearest support is at ₹1,345 — the 61.8 per cent Fibonacci retracement level of the previous uptrend. Below that level, there is a support band between ₹1,295 and ₹1,310.