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Closing Bell
Market benchmark Sensex tumbled 458 points and the Nifty fell by 129 points on Monday tracking losses in index-heavyweights HDFC Bank, Kotak Bank and Reliance Industries amid weak global cues. Also, investors have also turned cautious ahead of the Budget presentation on February 1.
Global markets fell to their lowest in two weeks on Monday as worries grew about the economic impact of China’s spreading coronavirus with demand spiking for safe-haven assets such as Japanese yen and Treasury notes.
In Europe, stock markets slumped at the start of trading, tracking their counterparts in Asia. The pan-European STOXX 600 index fell 1.4% to its lowest level since January 14.
The 30-share BSE index was down 458.07 points or 1.10 per cent lower to settle at 41,155.12. Similarly, the broader NSE ended at 12,119.00, down 129.25 points, or 1.06 per cent from its previous closing level.
Top losers in the Sensex pack included Tata Steel, IndusInd Bank, Kotak Bank, HDFC twins, SBI, Bharti Airtel, TCS, ITC, Infosys, NTPC and PowerGrid.
On the other hand, M&M, UltraTech Cement, ICICI Bank, Baja Auto and Maruti ended in the positive territory.
Among the BSE Sectoral indices, BSE Metal was the top loser today. The BSE Metal index lost 336.91 points, or 3.25%, to end at 10,027.44.
SENSEX CHART
BSE SENSEX CHART
Sensex stocks
NIFTY BANK INDEX
Nifty Bank chart
Why returns from key asset classes struggled to beat inflation
Investors are typically told to park their long-term savings in asset classes that can beat inflation. But finding such an asset would have been difficult over the last decade.
According to a BusinessLine analysis, equity returns (as captured by Nifty 500 index) just about managed to beat inflation in the last 10 years.
Windfall gains for erstwhile Excel Crop Care shareholders
Shareholders of erstwhile Excel Crop Care would have made a windfall gains on Monday, as Sumitomo Chemical India, a merged entity of Excel Crop Care, got listed on the bourses.
இந்த பட்ஜெட் ஏன் எல்லோராலும் உன்னிப்பாக கவனிக்கப்படுகிறது
மத்திய நிதி அமைச்சர் நிர்மலா சீதாராமன் அடுத்த சனிக்கிழமை பொது பட்ஜெட் தாக்கல் செய்ய உள்ளார். கடந்த சில ஆண்டுகளாக பட்ஜெட் நாள் மக்களிடமிருந்து பெரிய ஆர்வத்தை ஏற்படுத்தவில்லை. பட்ஜெட்டுக்கு புறம்பாக சில முக்கிய அறிவிப்புகளை கடந்த சில ஆண்டுகளாக நிதியமைச்சர்கள் எடுத்ததால், மற்றும் ஜி எஸ் டி என்கிற மறைமுக பொருள் மற்றும் சேவை வரி அறிமுகப்படுத்தியுள்ள தாலும், பட்ஜெட் நாள் அதன் முக்கியத்துவத்தை இழந்துவிட்டது.
Tough task ahead for Finance Minister
Broker's call: Axis Bank (Add)
Centrum Broking
Axis Bank (Add)
CMP: ₹737.3
Target: ₹822
Axis Bank’s year-on-year overall loan growth was healthy at 15.8 per cent and continued to be led by retail (25 per cent y-o-y growth). Overall corporate loan growth was slower, at 9 per cent y-o-y, but this was due to drop in the overseas business (down 21 per cent y-o-y); domestic corporate loan growth is healthy at 16 per cent y-o-y.
Mid-session
Market benchmark Sensex tumbled over 290 points on Monday tracking losses in index-heavyweights HDFC Bank, Kotak Bank and Reliance Industries amid weak global cues.
The 30-share BSE index was down 267.21 points or 0.65 per cent lower at 41,345.98. Similarly, the broader NSE was trading 84.15 points, or 0.69 per cent, down at 12,164.10.
Top losers in the Sensex pack included Tata Steel, IndusInd Bank, Kotak Bank, HDFC twins, TCS, ITC, Hero Motocorp, SBI and Tech Mahindra.
On the other hand, UltraTech Cement, ICICI Bank, M&M, Baja Auto, Axis Bank and Maruti were trading on a positive note.
TOP GAINERS ON BSE
TOP GAINERS ON BSE
TOP GAINERS ON BSE
TOP GAINERS ON BSE
Sensex stocks
NIFTY SECTORAL INDICES
NIFTY SECTORAL INDICES
Broker's call
Geojit Securities
Coromandel International Ltd: Buy
CMP: Rs 609
Target Price: Rs.656
Coromandel International’s net profit grew 37% Y-o-Y in Q2FY20 on the back of favourable product mix and raw material prices. Strong rainfall in Andhra Pradesh and Telangana is expected to improve volumes in the coming quarters. The central government schemes is expected to double farmer’s income will improve demand for its fertiliser products which in turn will boost the company’s volumes.
The company's EBITDA margins is expected to expand by 250 bps by FY22E as backward integration will reduce costs.
Valuing Coromandel International at 16x on FY22E EPS, the brokerage firm Geojit recommends the stock to buy with a target price of Rs.656 .
Nifty 50 January Futures (12,180)
The Nifty spot index, after gaining for two consecutive days, is facing selling pressure today. Similarly, the Sensex spot index too is on a decline in today's session. Both the benchmark indices are down by nearly half a per cent.
Radico Khaitan continues its upward move
Shares of Radico Khaitan continue to rally up further today on the back of good performance in the third quarter ended December 31, 2019.
Radico Khaitan, in a filing to the BSE, said it registered a 12.97 per cent rise in consolidated net profit to ₹59.74 crore for the third quarter ended December 31, 2019. The liquor maker had reported a net profit of ₹52.88 crore for the corresponding quarter of the previous fiscal.
In view of the quarterly performance of the company, the stock was up nearly 1.50% to Rs 385.55 on the BSE. Volumes traded in the counter were 33,000 shares as compared to two-week average traded quantity of 62,000 shares on the BSE.
The stock has been on an uptrend from Rs 305.60 on January 6 this year. It may be noted that the stock has gone up by more than 25% this month.
Why Hindalco is a long-term buy
A diversified presence across geographies and the Centre’s push for infrastructure spending augur well for the company. The Centre’s push for infrastructure spending will also help improve domestic metal demand. The improving operational performance of Novelis, the US-based downstream arm of Hindalco, is also a big positive for the company.
BSE UPPER CIRCUIT STOCKS
Godfrey Phillips shares up nearly 1% on sale proposal by promoters
Shares of Godfrey Phillips India rose nearly 1 per cent on the BSE today after the company has been put on the block by its key promoter entities, led by the KK Modi Family Trust. The trust is led by the KK Modi group, which is among the oldest family businesses in India.
Documents seen by BusinessLine indicate that key promoter entities, led by KK Modi Family Trust, have reached out to global investment bankers, including Goldman Sachs, Morgan Stanley, JP Morgan and Credit Suisse, for the mandate to sell their stake
The stock was up by 13.05, or 0.90%, to Rs 1,392.30 on the BSE with volumes of 1,448 shares traded as at 11 am.
Cigarette maker Godfrey Phillips up for sale
Godfrey Phillips India (GPI), the company that sells the Marlboro brand of cigarettes and is among the country’s largest tobacco manufacturers, has been put on the block by its key promoter entities, led by the KK Modi Family Trust. The trust is led by the KK Modi group, which is among the oldest family businesses in India.
SEBI plans to rationalise margin system in derivatives segment to bring down trading cost
Markets regulator SEBI is planning to rationalise margin system in the equity and commodity derivatives segments as part of its effort to boost liquidity and bring down trading cost, industry officials said. The regulator is expected to come out with the new margining system this week.
Syngene shares trade higher
The stock of Syngene International Ltd was trading marginally higher on the bourses today.
On the BSE, Syngene was up by Rs 2.10, or 0.70%, to Rs 310 with volumes of 696 shares as at 10.40 am today.
Syngene International Ltd’s net profit grew by 6 per cent to ₹92 crore in the third quarter of this fiscal following strong performances from discovery and development services.
Intra-day future recommendation
Broker's call: ICICI SECURITIES:
1. Buy Nifty in the range of 12140-12165
2. Buy Bank Nifty in the range of 31200-31250
3. Buy Axis Bank in the range of Rs 740.00-742.00
4. Sell Cipla in the range of Rs 457.00-458.00
Source: ICICI SECURITIES
ICICI Bank: Spurt in net profit overshadowed by spike in slippages
At first glance, ICICI Bank ’s over two-fold rise in net profit in the latest December quarter, decline in bad loan book, and a notable 50 per cent y-o-y fall in provisions may suggest that the asset quality troubles at the bank are finally getting over. But the sharp rise in slippages, addition to stressed book (‘BB’ and below-rated book) and significant write-offs indicate the possibility of further pressure on the asset quality.
The rupee opened on a cautious note and fell 18 paise to 71.51 against the US dollar in early trade on Monday amid rising demand for the US dollar vis-a-vis other currencies overseas.
At 10 am, the rupee was being quoted at 71.44, down by 11 paise versus the dollar. The rupee ended on Friday at 71.33.
Yen trades higher
The concerns about the coronavirus supported the yen, often perceived as a safe haven because of Japan's net creditor status. The Japanese currency strengthened as much as 0.5 per cent to 108.73 yen per dollar, its 2-1/2-week high.
The euro last stood at $1.1033 versus the dollar, having fallen to its eight-week low of $1.1019 on Friday.
The offshore yuan dropped more than 0.3 per cent to 6.9625 against the dollar, its weakest level since January 8.
GROUP B STOCKS AT 52-WEEK HIGH ON BSE
GROUP B: 52 WEEK HIGH STOCKS
STOCKS AT 52-WEEK HIGH
52-WEEK HIGH ON BSE
FOREX RATES
Opening Session
Stock indices tumbled on Monday as investors turned cautious ahead of US Fed meeting and Union Budget amid weakness in other major Asian markets.
Asian markets have turned weak as investors grew anxious about the economic impact of China's spreading virus outbreak, with demand spiking for safe-haven assets such as the Japanese yen and Treasury notes.
Japan's Nikkei average suffered a steep 1.8% loss, on track for the biggest one-day fall in three weeks.
U.S. S&P 500 mini futures was last down 0.9%, having fallen 1.3% in early Asian trade.
The 30-share index Sensex was down 227.94 points, or 0.55 per cent, to 41,385.06.
Similarly, the broader NSE Nifty declined 62.10 points, or 0.51 per cent, to 12,186.15.
Govt may allow Indian companies to list overseas soon
The government is likely to soon decide on permitting Indian companies to list their equity shares overseas, according to an official.
Apart from providing an additional fundraising avenue for the corporates looking to expand and boost their business activities, the overseas listing of shares would also help in bringing more capital into the country.
Stock trading call: Buy Wockhardt
The stock of Wockhardt jumped 6 per cent accompanied by above average volume last Friday, breaching an immediate resistance at ₹286.
The BSE Sensex was down by 102.51 points, or 0.25%, at 41,510.68, while the Nifty lost 69.50 at 12,178.75.
Stocks tumbled on Monday as investors grew increasingly anxious about the economic impact of China's spreading virus outbreak, with demand spiking for safe-haven assets such as the Japanese yen and Treasury notes.
Japan's Nikkei average suffered a steep 1.8 per cent loss, on track for the biggest one-day fall in three weeks. US S&P 500 mini futures was last down 0.9 per cent, having fallen 1.3 per cent in early Asian trade. “All you see is headlines about the coronavirus, giving investors a reason to sell the markets,” said Takeo Kamai, head of executions services at CLSA in Tokyo.
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