Virus fears trigger fresh sell-off; Sensex, Nifty end lower

Closing Bell

Stock market indices slumped tracking global weakness on concerns about potential impact on businesses from corona virus outbreak and its spread.

Heavyweights such as Reliance, Tata Steel, Bharti Airtel, Maruti, IndusInd Bank, ITC, Titan and UltracemCo, fell between 1.50 per cent and 5 per cent

Asian stocks extended losses as China took more drastic steps to combat the coronavirus, while bonds found favour on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.

Starting on a highly volatile note, the 30-share BSE index swung nearly 200 points in early trade. Later, it ranged between 41,333.25 and 40,869.75 during the day.

The Sensex ended lower by 188.26 points, or 0.46 per cent, at 40,966.86.

Similarly, the broader NSE Nifty lost 58.75 points, or 0.48 per cent, and ended at 12,060.25.

HDFC was the top gainer in the Sensex pack, rallying 1.50 per cent after the housing finance company reported a near four-fold growth in net profit at Rs 8,372.5 crore for the three months to December as against Rs 2,113.8 crore in the same period last fiscal year.

Hero MotoCorp, Sun Pharma, Bajaj Finance, HeroMotoCorp and Kotak Bank and TCS ended with gains up to 1.25%.

 

 

STOCK WATCH

 

3.30 pm

Central Bank of India Q3 result

PSU bank Central Bank of India's Q3 net profit was at Rs 155 crore versus loss of Rs 718 crore, YoY. Gross NPA was at 19.99% versus 19.89% and Net NPA was at 9.26% versus 7.9%, QoQ.

 

3.20 pm

Maruti Suzuki Q3 net profit up 5 per cent to ₹1,565 crore

 

Passenger car maker Maruti Suzuki India (MSIL) on Tuesday reported a net profit of ₹1,565 crore for the third quarter ended December 31, 2019, up 5 per cent as compared with ₹1,493 crore in same period previous year.

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3.15 pm

Wabco India Oct-Dec profit drops 35% to ₹39 cr

 

Auto component manufacturer Wabco India on Tuesday reported 35.3 per cent slump in net profit at ₹38.6 crore for the quarter ended December 2019.

The company had posted net profit (after tax) of ₹59.7 crore in the year-ago period.

 

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3.05 pm

Sensex, Nifty extend losses

Stock market indices fell sharply tracking global sell-off on Tuesday led by losses in heavyweights such as Reliance, Tata Steel, Bharti Airtel, Maruti, IndusInd Bank, ITC, Titan and UltracemCo, as the stocks fell between 1.50 per cent and 5 per cent

Asian stocks extended losses as China took more drastic steps to combat the coronavirus, while bonds found favour on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.

Starting on a highly volatile note, the 30-share BSE index swung nearly 180 points in early trade and ranged between 41,333.25 and 40,873 during the day.

The Sensex was down by 249.79 points, or 0.61 per cent, at 40,905.33.

Similarly, the broader NSE Nifty lost 87.35 points, or 0.72 per cent, at 12,031.65.

 

 

2.55 pm

 

 

2.30 pm

 

 

 

1.50 pm

 

1.40 pm

Trading call

Nifty 50 January Futures (12,128)

 

Taking mixed cues from the Asian markets, the domestic equity indices the Sensex and the Nifty started the session on a flat note and rallies initially. The Nikkei 225 has slipped 0.5 per cent to 23,215 while the Hang Seng index has marginally advanced by 0.15 per cent to 27,949 levels.

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1.30 pm

 

 

1 pm

Britannia Industries (₹3,200)

 

The stock of Britannia Industries is hovering around a crucial level of ₹3,200. Looking at the recent price action, the stock will most likely strengthen from current levels. Hence, traders with short-term perspective can buy the stock

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Britannia looks to scale up dairy business

Plans to raise milk procurement

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12.55 pm

மும்பையில் 7,000 டன்கள் வெங்காயம் அழுகும் அவல நிலை

உள்ளூரில் மொத்த விலை 1 கிலோ 23 ரூபாய்க்கு விற்பனை ஆனது; ஆனால் இறக்குமதி வெங்காயம் 1 கிலோ 45 ரூபாய் என இருந்தது

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7,000 tonnes of imported onions rot at JNPT as retail prices plummet

The bulb now sells for ₹23/kg in the wholesale market, while landed cost of the imported ones works out to ₹45/kg

Read More

 

 

12.45 pm

HDFC shares rise over 3 per cent as December quarter profit soars

 

Shares of HDFC on Tuesday jumped over 3 per cent after the company reported a near four-fold growth in net profit for the three months to December 2019.

The company’s scrip gained 3.13 per cent to Rs 2,470.85 on the Bombay Stock Exchange (BSE)

On the National Stock Exchange (NSE), it climbed 3.16 per cent to Rs 2,471.70.

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12.35 pm

Abhijit Banerjee bats for wealth tax to combat inequality

Nobel laureate and economist, Abhijit V Banerjee, on Monday, called for re-introduction of a wealth tax in India considering the rising “inequality”.

“Given the amount of inequality now, a wealth tax is completely sensible. And more redistribution is required,” he said while speaking at a literary meet here. He, however, does not expect the levy/reintroduction of wealth tax “immediately”.

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12.15 pm

What is the Aam Aadmi hoping for in this Budget?

Finance Ministry gets nearly 19,000 suggestions

A push to entrepreneurship and job creation, investments in agriculture and some personal income tax relief are some of the items on the Aam Aadmi’s Union Budget wish list, amidst a slowing economy, upcoming State elections and the uproar over CAA and NRC.

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12.10 pm

LIC cuts stake in Ambuja Cement

 

The stock of Ambuja Cements was up over 1 per cent today. Recently, Life Insurance Corporation of India has reduced stake in the company from 6.2% to 4.1%.

The stock was up by Rs 2.35, or 1.09%, to Rs 217.90 on the NSE with volumes traded at around 29.01 lakh shares as at 12.05 pm.

 

11.55 am

Torrent Pharma falls 5.50 per cent on muted results

 

Torrent Pharmaceuticals shares dropped by Rs 111 or 5.50% on Tuesday on  after the company reported fall in its revenue amidst a marginal rise in its net profits for the December quarter period.

At 11.55 am, the stock was quoted at Rs 1,922.60, down by 104.55, or 5.16%, on the NSE.

Torrent Pharma reported that its revenue declined 4.1% to ₹1,966 crore for the third quarter ended December 31, 2019. The company's net profit rose 2% to ₹251 crore. The company's EBITDA fell 3.7% to ₹540 crore versus ₹561 crore.

USFDA red flags Torrent Pharma’s US-based plant for manufacturing violations

The American health regulator has pulled up Torrent Pharmaceuticals’ US-based subsidiary for violations of good manufacturing practices, including a ...

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11.20 am

Broker's call

JM FINANCIAL

 

Bank of Baroda | Weak quarter

 

HOLD - Rs 95

 

Bank of Baroda reported a weak quarter in Q3FY20, with slippages at Rs 118 billion (7.7% annualised). Elevated slippages were driven by divergence related slippages (BoB reported Rs 52.5 billion of divergence for FY19, of which Rs 45 billion slipped in Q3 and Slippage of troubled HFC (Rs 20 billion).

As a result, specific credit cost was high at 4.1%. GNPLs increased 18bps QoQ to 10.4%, while PCR was stable at 64%. 85% of corporate slippages in the quarter originated from the watchlist, which declined 28% QoQ to Rs 105 billion (1.6% of loans). Loan growth was soft at 2.7% Y-o-Y (with retail loans growing 15% Y-o-Y), while deposit growth was at 1%.  Specific credit cost estimates is expected to increase to 2.6% for FY20 (2.3% previously) due to impact of elevated slippages.

The brokerage firm maintains the stock as  HOLD with a target price of Rs 95.

Q3 Comment | Why Bank of Baroda Q3 performance suggests more pain ahead

Sharp rise in slippages, steep divergence and weak core performance are a cause for worry

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Higher provisioning pushes BoB into red with ₹1,407-crore net loss

This is despite a ₹790-cr write-back in tax provision

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11.05 am

 

HDFC climbs 2% on four-fold rise in net profit

Shares of Housing Development Finance Corporation (HDFC) went up ove 2 percent today after housing finance company reported  a near four-fold rise in net profit for the third quarter of the fiscal, with doubling of total income after the merger of Gruh with Bandhan Bank.

The standalone net profit of HDFC shot up to ₹8,372.49 crore in the October to December 2019 quarter against ₹2,113.80 crore in the same period a year ago.

The board also approved the issue of non-convertible debentures up to ₹45,000 crore on a private placement basis.

The stock of HDFC Ltd rose Rs 50.05, or 2.11%, to Rs 2,446.35 on the BSE with volumes of around 97,000 shares traded in the counter today.

 

 

11 am

Gold steady as coronavirus fears offset stronger dollar

 

Gold prices were little changed on Tuesday as rising concerns over the fast-spreading coronavirus in China and its economic impact offset a firmer dollar.

Spot gold was unchanged at $1,581.09 per ounce by 0140 GMT. On Monday, prices rose to their highest since Jan. 8 at $1,586.42. US gold futures rose 0.2 per cent to $1,580.90.

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10.50 am

Initiate rupee shorts with stop-loss at 71.2

 

Continuing the downtrend, the rupee (INR) weakened on Monday against the dollar (USD). The domestic currency closed below an important support of 71.4, thus breaching the 50 per cent Fibonacci retracement level of previous uptrend – a bearish indication.

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10.45 am

Rupee rises 6 paise to 71.37 against US dollar 

 

The Indian rupee appreciated by 6 paise to 71.37 against the United States (US) dollar in early trade on Tuesday tracking gains in domestic equity market and easing crude oil prices.

Forex traders said rupee is trading in a narrow range amid fast-spreading coronavirus outbreak in China stoking fears about more trouble for the global economy.

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10.35 am

All eyes on Central Bank, Maruti Suzuki results

 

About 50 firms including Andhra Paper, Alicon Castalloy, Central Bank, Century Textiles, CG Power, Cummins India, DCW, Honda SIEL, IFB Ind, Infibeam, JK Lakshmi Cement, KRBL, M&M Financial, Manappuram, Maruti Suzuki will announce results on Tuesday.

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10.25 am

 

10.20 am

Broker's call

Recommendations from ICICI Securities

Intraday calls

(Source: ICICI Securities)

 

10.10 am

Nifty January Futures

Nifty January futures was trading around 12, 137.35 with an Open Interest standing at 1,72,302 contracts. There was an addition of 7,373 contracts in today's trading.

According to market analysts, aggressive Call writing was seen in 12200, 12300 and closure in ATM Put, which would keep the Nifty index under pressure in the coming trading sessions.

As per the NSE data on Monday, the highest Put base was at 12000 strike with almost 40 lakh shares while the highest Call base was at the 12200 strike with 55 lakh shares.

 

 

10.05 am

Coronavirus virus death toll jumps to 106

 

China has reported 24 more deaths from coronavirus epidemic, taking the number of fatalities to 106 as the confirmed cases of pneumonia caused by the outbreak stand at 4,515, the health authorities announced on Tuesday.

Barring Tibet, all Chinese provinces have reported the virus cases, posing a major challenge for the health authorities to contain it.

READ MORE

 

10 am

Day Trading Guide for Jan 28

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

 

₹1212 • HDFC Bank

 

S1S2R1R2COMMENT
1200118512251238Fresh short positions are recommended with a fixed stop-loss only if the stock falls below ₹1,200 levels

 

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9.55 am

Rupee up by 6 paise at 71.37

The rupee opened firmer against the dollar on Tuesday. The domestic currency was up 6 paise at 71.37 against the US dollar.

At the interbank foreign exchange market, the local unit opened on a strong note at 71.37, and shuttled between a low of 71.41 and a high of 71.38 during the day.

The rupee had closed yesterday at 71.43 against the dollar.

Initiate rupee shorts with stop-loss at 71.2

Continuing the downtrend, the rupee (INR) weakened on Monday against the dollar (USD). The domestic currency closed below an important support of ...

Read More  

9.45 am

IOL Chemicals & Pharmaceuticals (₹193.2)

Investors with a short-term perspective can buy the stock of IOL Chemicals & Pharmaceuticals at current levels. The stock jumped 8.7 per cent accompanied by extraordinary volume breaking above a key resistance at ₹185.

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IOL Chemicals & Pharma makes ₹22.11-cr loan prepayment

IOL Chemicals & Pharmaceuticals has made a ₹22.11-crore prepayment of a term loan to a bank in addition to its scheduled repayments. In a notice ...

Read More  

 

9.40 am

Broker's call: ICICI Bank (Buy)

 

Reliance Securities

ICICI Bank (Buy)

CMP: ₹536.35

Target: ₹650

ICICI Bank has reported a healthy operating performance in Q3. Improving margin, steady growth in fee-based income and high treasury gains led to 24 per cent y-o-y and 23 per cent y-o-y growth in NII and PPoP, respectively. Despite sequential decline in provisions led by recoveries from a fully provided steel account, provisioning was higher than our estimate, as the Bank recognised two large corporate accounts as NPA, one of which was fully provided for. 

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9.30 am

Opening Bell

Markets opened the day marginally higher after yesterday's 1% fall on follow-up buying from investors. However, the Sensex showed mild volatility immediately after opening higher and was seen hovering around yesterday's closing levels.

At 9.25 am, the benchmark BSE Sensex was trading lower by 48.40 points, or 0.12 per cent,  to 41,106.72.

However, the broader NSE Nifty was up by 21.10 points, or 0.17 per cent, to 12,140.10.

Sectoral indices showed mixed trend today. While Auto and Banking were trading in the green, others such as IT, FMCG and Metals sector stocks lost marginal ground.

Asian stocks extended a global sell-off on Tuesday as China took more drastic steps to combat a deadly new coronavirus, while bonds shone on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.

 

9.15 am

 

 

9.10 am

Japan shares slip to 3-week low on coronavirus concerns

Japanese shares dropped to three-week lows on Tuesday as a broad range of stocks came under pressure from the spread of the coronavirus that could curb global economic growth.

At midday close, the Nikkei share average was down 0.94% at 23,124.51, hitting the lowest level since Jan. 8.

The Topix, which includes all listed shares on the Tokyo Stock Exchange's main board, lost 0.92% to 1,686.83.

Losses were widespread, with 80% of the main board shares in the red, an unusually high ratio.

9.05 am

Asian stocks crumble as coronavirus toll mounts, safe havens in demand

 

Asian stocks extended a global sell-off on Tuesday as China took more drastic steps to combat a deadly new coronavirus, while bonds shone on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.

As the death toll reached 106 in China, some health experts questioned whether Beijing can contain the virus which has spread to more than 10 countries, including France, Japan and the United States. No deaths have been reported outside of China so far.

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Japan's Nikkei shed 0.61 per cent. File Photo   -  Bloomberg

 

Published on January 28, 2020