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Closing Bell
After rebounding over 170 points in opening session, the 30-share index gave up the gains steadily later and ended lower at 40,281.20.
The Sensex was down 82.03 points, or 0.20%, at 40,281.20 and the Nifty has shed 16.20 points at 11,813.20.
The broad market breadth was negative on the BSE. Out of the total 2,616 shares traded, the number of shares that advanced were 964 and the decliners were higher at 1,469.
Major losers include Sun Pharma, HCL Tech, Reliance, Titan, Larsen & Toubro, IndusInd Bank and UltraCemCo, while others such as TCS, Tata Steel, SBI, Bajaj Finance and Bharti Airtel scored gains providing support to the market.
Asian markets were mixed on Tuesday as bargain-buying after the previous day’s bloodbath tempered fears that the coronavirus will develop into a pandemic and hammer the global economy.
The Nikkei ended more than three per cent lower, while Sydney and Wellington each shed more than one per cent and Shanghai dipped 0.6 per cent. There were also losses in Bangkok and Jakarta.
However, Hong Kong added 0.2 per cent, while Seoul jumped 1.2 per cent, having plunged almost four per cent on Monday in reaction to a spurt of infections in South Korea at the weekend. Singapore added 0.6 per cent, and Taipei rose 0.1 per cent
Camlin Fine Sciences jumps nearly 5%
The stock of Camlin Fine Sciences went up nearly 5% today after the company informed the BSE that its China joint venture’s manufacturing facility has resumed operations.
The stock gained Rs 2.85, or 4.25%, to Rs 70.25 on the BSE. During last one month, the stock has fallen from a high of Rs 83.40 traded on February 6, to a low of Rs 66.50 on February 18 and subsequently rebounded.
Navin Fluorine zooms 20% on bagging multi-year contract
Navin Fluorine stock surged Rs 242.50, or 20%, today to Rs 1,455.10 after the company said it has entered into a $410 million multi-year contract with a global company for manufacture and supply of a High Performance Product in the fluorochemicals space.
The project will entail an investment of about $51.50 million (Rs. 365.50 Crore) in the manufacturing facility and $10 million (Rs. 71 crore) in captive power plant. The company will execute this capex and the project through its wholly-owned subsidiary, Navin Fluorine Advanced Sciences Limited and will be located at Dahej, in Gujarat. The company will fund through a mix of internal accruals and debt, it added.
NIFTY 50 INDEX
Navin Fluorine zooms nearly 19% on bagging multi-year contract
Navin Fluorine stock surged 19% to Rs 1,418.35 on the BSE today after the company said it has entered into a $410 million multi-year contract with a global company for manufacture and supply of a High Performance Product in the fluorochemicals space.
The project will entail an investment of about $51.50 million (Rs. 365.50 Crore) in the manufacturing facility and $10 million (Rs. 71 Crore) in captive power plant. The company will execute this capex and the project through its wholly-owned subsidiary, Navin Fluorine Advanced Sciences Limited and will be located at Dahej, in Gujarat. The company will fundthrough a mix of internal accruals and debt, it added.
Wonderla Holidays to pay interim dividend
Wonderla Holidays announced that interim dividend of Rs 1.80 per share will be paid from March 9, 2020.
Maharashtra Scooters fixes RD for the purpose of Interim dividend
Maharashtra Scooters has fixed March 4, 2020 as the Record Date for the purpose of Payment of Interim Dividend. The aforesaid interim dividend shall be credited/dispatched to the shareholders on or around March 9, 2020.
Broker's call
Geojit Financial Services
HDFC Life Insurance Company Ltd
Rating: Hold
CMP: Rs.561
Target Price: Rs.630
HDFC Life Insurance Company’s Gross Premium Income grew 15% Y-o-Y to Rs.8,001 cr driven by 23.2% Y-o-Y growth in first year premium and 14% growth in renewal premium (47% of total gross income). However, PAT remained flat at Rs 250 cr impacted by higher operating cost.
The company’s Indian Embedded Value (IEV) improved 19.8% Y-o-Y to Rs.20,841 cr while value of New Business grew (VoNB) grew 44.9% Y-o-Y to Rs.1,407 cr. HDFC Life is well placed amongst its peers with its balanced growth across all segments. We value the stock at 4.0x FY22E EV per share with a target price of Rs 630 and a HOLD rating.
Shilpa Medicare up 5% on biological unit sale plan
Shilpa Medicare share price was locked in five percent upper circuit today after the board approved the sale of its biological unit.
The stock touched a fresh 52-week high of Rs 515.20, up Rs 24.50, or 4.99 percent, on the BSE. There were pending buy orders of 7,084 shares, with no sellers.
The company’s board of directors on February 24 approved the sale of biological unit by way of slump sale to Shilpa Biologicals Private Limited, a wholly owned subsidiary.
Nifty 50 February Futures (11,871)
The Sensex and the Nifty commenced the session on a flat note in the midst of mixed Asian cues. US markets had plunged sharply last session and the Nikkei 225 index has tumbled 3.3 per cent 22,605 levels while Hang Seng index is trading flat, gaining 0.15 per cent to 26,861 levels in today's session.
Banking sector profitability remains fragile despite fall in NPAs and better provisioning: RBI Governor
Despite the recent decline in impaired assets and a significant improvement in provisioning, profitability of the banking sector remains fragile, according to Reserve Bank of India Governor Shaktikanta Das.
Nikkei hits 4-month low as coronavirus epidemic spreads
Japan's Nikkei share average fell nearly 5% to a four-month low on Tuesday, as investors returning after a long weekend dumped riskier assets following a spike in coronavirus infections outside China that threatened global growth.
HUL shares gain nearly 3 per cent after board gives nod for new unit
Shares of Hindustan Unilever (HUL) were trading nearly 3 per cent higher after the company said its board had approved a new manufacturing subsidiary, which is expected to benefit from the new corporate tax rate
Foreign investors from Mauritius to continue being eligible for FPI registration: SEBI
Market regulator SEBI on Tuesday said foreign investors from Mauritius will continue to be eligible for FPI registration with increased monitoring as per international norms.
The announcement comes after the tax haven was put on the ‘grey list’ of Financial Action Task Force (FATF) – an inter-governmental policy making body that sets anti-money laundering standards.
TOP GAINERS TODAY ON BSE
BSE BANKEX
MCX-Aluminium consolidates with bearish bias
The March Aluminium mini futures contract — Alumini — on the MCX seems to be extending its two-week sideways trend. The boundaries of the range are ₹136.8 and ₹139.4.
Notably, the price ruling below 21- and 50-DMAs indicates a bearish bias.
Camline Fine Sciences climb 5%
The stock of Camlin Fine Sciences went up nearly 5% today after the company informed the BSE that its China joint venture’s manufacturing facility has resumed operations.
The stock gained Rs 3.30, or 4.90%, to Rs 70.70 on the BSE. During last one month, the stock has fallen from a high of Rs 83.40 traded on February 6, to a low of Rs 66.50 on February 18 and subsequently rebounded.
Camline Fine Sciences chart on BSE (Feb 25, 2020)
Two cheers for new income tax system
In the Budget, a new personal income tax regime was announced. It has rationalised the tax rates and slabs, and has done away with myriad deductions and exemptions currently available to a taxpayer.
Effectively, the structure has been made more continuous, with narrower income slabs and applicable income tax rates being lower for a relatively higher income threshold, compared to the old regime
Markets marginally higher
Indian shares were slightly higher on Tuesday as Asian markets steadied after a steep sell-off a day earlier, while U.S. President Donald Trump's two-day visit failed to boost sentiment.
The broader NSE Nifty 50 index was up 6.30 points or 0.05%, at 11,835.70 while the benchmark S&P BSE Sensex also rose 52 points, or 0.13%, to 40,415.40.
The Nifty index tumbled 2.1% and the Sensex plunged nearly 2% on Monday, in a broad global market sell-off sparked by fears of a greater impact on economic growth from the rapid spread of the coronavirus outside China.
“Markets are mostly on a contagion mode due to coronavirus. There has been a little bit of correction. If the Asian markets are up that's a little bit of good news for other markets,” said Naveen Kulkarni, head of research at Reliance Securities.
“There is nothing major in the works as far as an imminent trade deal between the U.S. and India is concerned,” he added.
Trump said on Monday the two countries will sign defence deals worth $3 billion and that both sides were at the early stages of reaching an “incredible” trade agreement.
Asia-Pacific shares outside Japan inched up 0.2%, while E-mini futures for the S&P 500 bounced on Tuesday after the index suffered steep losses overnight.
Oil and Natural Gas Corp was the top gainer, rising 2.14%, while UPL Ltd was the top laggard, falling 1.32%.
TVS Motor skids over 6%
Shares of Indian two-wheeler manufacturer TVS Motor Co Ltd tumbled 6.41% after it warned of a 10% drop in February production as auto parts supply is being hit by the coronavirus epidemic.
The blue-chip Nifty 50 index has fallen over 4% from its Jan. 20 record intraday high of 12,430.50, weighed down by the coronavirus outbreak and a lacklustre Union budget -Reuters
Automobile stocks
Spotlight on HUL's Rs 2,000-cr new subsidiary
The board of Hindustan Unilever on Monday approved a proposal to form a new 100 per cent subsidiary, which will be be incorporated with an authorised share capital of ₹2,000 crore. This new subsidiary has been formed to leverage the growth opportunities in a fast-changing business environment
Broker's call: IndusInd Bank
India Nivesh
CMP: ₹1,170.55
Multiple issues weighing down on valuations: IndusInd Bank’s valuations have been under strain ever since it disclosed its exposure to IL&FS (₹3,000 crore) and have subsequently struggled to improve with a) attendant credit costs weighing down on profitability; b) further uncertainty with regard to its exposure to Vodafone-Idea, which the bank clarified recently in an exchange filing, was ₹3,400 crore (FB ₹900 crore, NFB ₹2,400 crore);
Bank Nifty index
F&O margin: Pay more for volatile stocks; using options to cost less
Higher volatility in stocks will now call for higher margin requirement in both cash and for naked positions in derivative segment, according to SEBI’s new norms announced on Monday. But there is a huge relief for those who want to hedge their positions using options strategy, where the margin requirement falls by almost 70 per cent, according to the new rules.
Sensex, Nifty open firm
After rebounding over 150 points in opening session, the 30-share index pared gains to trade marginally higher at 40,398.66 at 0940 hours. Similarly, the broader NSE Nifty was quoting slightly up at 11,832.45.
Heavyweights such as ONGC, Hindustan Lever, Infosys, Asian Paint, HDFC and M&M scored gained up to 2 per cent, while others such as HCL Tech, Titan, Sun Pharma, ICICI Bank and HDFC Bank met with losses up 1.50%
Nikkei, Hang Seng down
Asian share markets were trying to stabilise on Tuesday after a wave of early selling petered out and Wall Street futures managed a solid bounce, allowing investors to take a break from coronavirus fears.
Some dealers cited a Wall Street Journal report on a possible vaccine as helping sentiment, though human tests of the drug might not start until the end of April.
Whatever the cause, E-Mini futures for the S&P 500 bounced 1% to pare some of the steep 3.35% loss the cash index suffered overnight.
South Korea's hard-hit market edged up 0.8% and helped MSCI's broadest index of Asia-Pacific shares outside Japan fight back to flat.
Japan's Nikkei was still down 2.8%, but just catching up to the global sell-off having been shut on Monday. Shanghai blue chips eased 0.7% but also off early lows. - PTI
Day Trading Guide for February 25, 2020
Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:
₹1210 • HDFC Bank
Nifty index Feb 25, 2020
Nifty Call: Sell on rallies with stop-loss at 11,975
The Sensex and the Nifty commenced the session with a gap-down opening, tracking the weak global cues.
NIFTY SECTORAL INDICES
Nifty Sectoral Indices Feb 25, 2020 at 9.18 am
Motherson Sumi Systems (₹114.6)
Investors with a short-term perspective can sell the stock of Motherson Sumi Systems at current levels.
On Monday, breaking below a key support at ₹122 as well as the 200-DMA line at around ₹120.
Sensex at pre-open session
Sensex stocks
US stocks join global rout on virus, Dow ends 3.6%
Wall Street stocks finished with steep losses on Monday, joining a global rout as worries mounted that the new coronavirus will derail economic growth.
The benchmark Dow Jones Industrial Average plunged 3.6 percent to 27,960.80, a drop of more than 1,000 points and the biggest loss in a session in more than two years.
The broad-based S&P 500 slumped 3.4 percent to 3,225.89, while the tech-rich Nasdaq Composite Index tumbled 3.7 percent to 9,221.28.
The selloff left all 11 industrial sectors in the red, with energy and technology shares suffering the biggest losses. Airlines and other travel-oriented stocks were also hammered.
Analysts attributed the ugly session to news that the coronavirus had spread over the weekend more rapidly outside of China. Italy has locked down 11 towns and South Korea ordered all 2.5 million residents of the city of Daegu to remain indoors.
“The market reaction is a classic ‘sell now and ask questions later,’” said Quincy Krosby, chief market strategist for Prudential Financial.
World shares have been buoyed by news of a possible new round of talks between Washington and Beijing. File Photo
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