Samyag
02 Apr 2020 | 09:21:05 AM
  
Wednesday, April 01, 2020  Source:BSE 15 mins delay  Sensex :  28,265.31Asian Paints: 1,603.90  [62.80]Axis Bank: 358.45  [20.85]Bajaj Auto: 2,051.90  [27.00]Bajaj Fin.: 2,220.10  [4.05]Bharti Airtel: 421.10  [19.50]H D F C: 1,584.40  [46.05]HCL Technologies: 413.05  [23.70]HDFC Bank: 829.70  [32.30]Hero Motocorp: 1,639.15  [44.95]Hind. Unilever: 2,179.25  [118.90]ICICI Bank: 311.45  [13.05]IndusInd Bank: 342.30  [8.85]Infosys: 604.10  [36.20]ITC: 166.35  [5.65]Kotak Mah. Bank: 1,182.10  [114.25]Larsen & Toubro: 774.75  [32.10]M & M: 272.65  [12.35]Maruti Suzuki: 4,243.60  [44.15]Nestle India: 15,668.70  [633.70]NTPC: 81.10  [3.10]O N G C: 65.75  [2.55]Power Grid Corpn: 154.40  [4.60]Reliance Inds.: 1,080.65  [31.80]St Bk of India: 186.60  [10.35]Sun Pharma.Inds.: 343.55  [8.65]Tata Steel: 266.45  [3.30]TCS: 1,709.55  [113.50]Tech Mahindra: 511.20  [53.75]Titan Company: 936.75  [3.25]UltraTech Cem.: 3,140.55  [113.70]
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Sensex, Nifty snap 2-day gains on weak macro data; negative global cues
13-Feb-20   17:11 Hrs IST

Key market barometers ended with small losses on Thursday. While private banks dragged the indices lower, gains in IT shares provided support. Trading was volatile due to expiry of weekly index options on the NSE.

The barometer S&P BSE Sensex, was down 106.11 points or 0.26% at 41,459.79. The Nifty 50 index lost 26.55 points or 0.22% at 12,174.65.

The sentiment was affected by weak domestic economic data. Shares across the globe were under pressure as the death toll from the coronavirus in mainland China spiked 23% Wednesday amid new counting methods adopted by Chinese health officials.

In the broader market, the BSE Mid-Cap index fell 0.01% and the BSE Small-Cap index rose 0.07%.

The market breadth was negative. On the BSE, 1057 shares rose and 1432 shares fell. A total of 157 shares were unchanged.

Economy:

Ratings agency S&P Global on Thursday reaffirmed India's long-term rating at 'BBB-' with a stable outlook, saying the country's growth will be strong. The rating agency further added that India will maintain its sound net external position, and its fiscal deficits will remain elevated but broadly in line within forecasts over the next two years.

S&P expects that the economy will continue to outperform peers at a similar level of income, despite a recent slowdown in real GDP growth. It also said that the supportive monetary, fiscal, and cyclical factors should support economic recovery, with real GDP growth averaging 7.1% in fiscals 2020-2024.

S&P further added that the upward pressure on the ratings could build if the government significantly curtails its fiscal deficits, resulting in lower net indebtedness at the general government level. On the other hand, downward pressure on the ratings could emerge if India's GDP growth falls well below their forecasts, net general government deficits rise further from their currently elevated levels and or political developments materially undermine economic reform momentum.

India's Industrial Production (IIP) shrank 0.3% to 133.5 in December 2019 over December 2018. Manufacturing sector output declined by 1.2%. Electricity generation also dipped 0.1%. Mining sector output grew by 5.4% compared with December 2018.

Consumer price inflation in January rose to 7.59%, holding around six-year top. CPI rural inflation rose to 7.73% versus 7.23% in December. January core inflation also surged to 4.8% versus 3.7% in December.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.426% at 16:45 IST compared with 6.473% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.3675, compared with its close of 71.33 during the previous trading session.

In the commodities market, Brent crude for April 2020 settlement fell 60 cents to $55.19 a barrel. The contract rose $1.78 or 3.30% to settle at $55.79 a barrel in the previous trading session.

Foreign Markets:

European shares extended losses while Asian markets ended mostly lower on Thursday after China's Hubei province reported a spike in the number of new coronavirus cases due to a tweak in methodology.

The region reported an additional 242 deaths and 14,840 new cases for February 12, bringing the total number of people who have died amid the outbreak up to 1,310. The number of new cases rose dramatically after the province changed its method of reporting cases. The province said it is starting to include clinically diagnosed cases in its figures and that 13,332 of the new cases fall under that classification.

Back in Europe, British Prime Minister Boris Johnson is set to reshape his government on Thursday as the U.K. forges a future for itself outside of the European Union.

New data from the U.K.'s Royal Institution of Chartered Surveyors on Thursday showed that British house prices rose for the first time since July 2018 last month.

In US, markets ended higher on Wednesday, with all three major benchmarks registering all-time closing highs, buoyed by signs of a slowdown in the number of new cases of COVID-19 - a strain of coronavirus that emerged in Wuhan, China late last year.

Buzzing Indian Segments:

The Nifty Private Bank index declined 1.36% to 17,083, underperforming the other sectoral indices on the NSE.

IndusInd Bank (down 3.68%), City Union Bank (down 2.42%), RBL Bank (down 1.97%), ICICI Bank (down 1.51%), Federal Bank (down 1.49%), Kotak Mahindra Bank (down 1.44%), Axis Bank (down 1.2%) and HDFC Bank (down 0.63%) edged lower.

Yes Bank surged 5.68%. The bank said it has received non-binding expressions of interest from investors including JC Flowers, Tilden Park Capital, OHA UK and Silver Point Capital. Meanwhile, India Ratings and Research has downgraded Yes Bank's long-term issuer rating to 'IND A-' from 'IND A', while maintaining it on rating watch negative (RWN). The downgrade reflects the continued delay and inconclusive quantum of the anticipated equity infusion in Yes Bank. Ind-Ra believes this could adversely impact the bank's franchise and potentially create challenges on asset and liability side.

The Nifty IT index rose 0.82% to 16,673.05, outperforming the other sectoral indices on the NSE. Infosys (up 1.45%), Mindtree (up 1.40%), Tech Mahindra (up 0.98%), TCS (up 0.97%) and MphasiS (up 0.24%) advanced.

Stocks in Spotlight:

Among Nifty stocks, BPCL (down 1.16%) and Nestle India (up 0.58%) will announce Q3 earnings today.

IRCTC jumped 11.35% to Rs 1579.95. It hit a record high of Rs 1609.30 in intraday today. On a standalone basis, IRCTC's net profit jumped 179.6% to Rs 205.80 crore in Q3 December 2019 as against net profit of Rs 73.60 crore in Q3 December 2018. Net sales rose 64.6% to Rs 715.98 crore in Q3 December 2019 from Rs 435.01 crore posted in Q3 December 2018.

Ashok Leyland gained 0.25%. On a consolidated basis, the commercial vehicle maker's net profit tumbled 86.68% to Rs 57.11 crore in Q3 December 2019 (Q3 FY20) as against Rs 428.76 crore reported in Q3 December 2018 (Q3 FY19). Net sales slipped 30.48% year-on-year (Y-o-Y) to Rs 5,148.15 crore in Q3 FY20. EBITDA margin stood at 5.6% in Q3 December 2019 compared with 5.8% in Q2 September 2019 and 10.3% in Q3 December 2018.

Chalet Hotels fell 1.77% after MSCI excluded the hospitality stock from its India Domestic Small Cap Index.

Sterling and Wilson Solar (SWS) slumped 8.40%. The company reported 73.31% decline in consolidated net profit to Rs 50.3 crore on a 34.52% fall in revenue from operations to Rs 1076.4 crore in Q3 December 2019 over Q3 December 2018. Profit before tax or PBT stood at Rs 62.1 crore in Q3 FY20, down by 72.92% from Rs 229.4 crore in Q3 FY19.

The company said that it is constantly evaluating the current situation in China due to outbreak of Corona virus which will impact its business in the near term. Currently the production activities at some of its critical suppliers' end have stopped and is expected to commence by end of February 2020. As most material was expected to be shipped in February / March 2020 there is likely to be a significant impact, it added.

Bharat Heavy Electricals (BHEL) advanced 1.93% after it signed a Memorandum of Understanding (MoU) with Joint Stock Company Rosoboronexporr, Russia to undertake joint projects and operations for defence systems.

Aarti Industries fell 1.46%. Consolidated net profit rose 4.6% to Rs 139.84 crore in Q3 December 2019 (Q3 FY20) from a net profit of Rs 133.70 crore in Q3 December 2018 (Q3 FY19). Net sales fell 4.5% year-on-year (Y-o-Y) to Rs 1,218.48 crore in Q3 FY20. Profit before tax gained 4.3% to Rs 178.83 crore Y-o-Y. Current tax expenses also soared 27.7% to Rs 31.77 crore during the period under review.

Natco Pharma slumped 4.80%. The drug maker's consolidated net profit fell 34.5% to Rs 104.50 crore on 13.4% decline in net sales to Rs 482.20 crore in Q3 December 2019 over Q3 December 2018. Profit before tax in the December quarter stood at Rs 128.80 crore, down by 37.1% from Rs 204.70 crore reported in the corresponding quarter last fiscal. Current tax expenses of the company fell 39.6% to Rs 31.10 crore in Q3 December 2019 over Q3 December 2018.

Torrent Power surged 7.55%. The company reported 76.99% jump in consolidated net profit to Rs 419.39 crore on 5.79% fall in total income to Rs 3,115.48 crore in Q3 December 2019 over Q3 December 2018. Sales grew The board approved interim dividend of Rs 11.60 per equity share, which includes a special dividend of Rs 5 per equity share, with a view to distribute a part of the one-time tax gain arising from reduction in tax rates.

General Insurance Corporation of India slumped 4.11%. GIC RE informed that that the Corporation has obtained license from the Central Bank of the Russian Federation (Bank of Russia) for its subsidiary company GIC Perestrakhovanie LLC, Moscow for commencement of reinsurance business. The license was received on 12 February 2020.

Gillette India fell 0.78%. The company's net profit jumped 31.64% to Rs 71.07 crore in Q2 December 2019 as against Rs 53.99 crore posted in Q2 December 2018. Profit before tax (PBT) for Q2 December 2019 stood at Rs 89.92 crore, rise by 1.4% from Rs 88.68 crore reported in Q2 December 2018. Net sales declined 3.42% to Rs 459.31 crore in Q2 December 2019 over Q2 December 2018, due to market slowdown and trade inventory correction.

PI Industries fell 0.87%. On a consolidated basis, PI Industries reported 12.4% rise in net profit to Rs 121.10 crore on a 20.1% increase in net sales to Rs 849.80 crore in Q3 December 2019 over Q3 December 2018. PBT in the December quarter stood at Rs 169.80 crore, up by 21.7% from Rs 139.50 crore in Q3 December 2018.

Meanwhile, PI Industries' board approved fund raising of upto Rs 2,000 crore through a qualified institutions placement (QIP) to support next leg of growth strategy for business. This is an enabling resolution and the actual investment will depend on the plans as they get firmed up.

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