MARKET WRAP: Sensex ends below 41,000, slips 188 pts; Bharti Airtel down 4%

All that happened in the markets today

3:41 PM

Nifty snapshot at close

3:40 PM

Top gainers and losers on S&P BSE Sensex at close

3:39 PM

Closing Bell

>> The S&P BSE Sensex plummeted 188.26 points, or 0.46 per cent, to end at 40,966.86 level. Bharti Airtel (down 5 per cent), Tata Steel (4 per cent), and Reliance Industries (3 per cent) were the top laggards at the 30-share index. On the upside, HDFC (1.6 per cent), Bajaj Finance (1.3 per cent), and Sun Pharma (1 per cent) were the top gainers. In the intra-day trade, the Sensex hit a low of 40,869.75.

 

>> On the National Stock Exchange (NSE), the broader Nifty50 held the psychological mark of 12,000, and ended marginally above the level at 12,055.80-mark, down 63.20 points, or 0.52 per cent.

3:18 PM

NEWS ALERT | DGFT blacklists Bharti Airtel, puts co on 'Denied Entry List': sources to CNBC TV18

>> Says co didn't fulfill export obligations under EPCG

>> Denied Entry List leads to import curbs

Alert: DGFT is Directorate General of Foreign Trade

3:00 PM

Market check | Sensex slips below 41,000

2:59 PM

NEWS ALERT | Magma Fincorp to seek board nod for raising up to Rs 3,000 cr in FY21 via NCDs: BSE filing

Alert: Board meeting to be held on Jan 31

2:47 PM

BSE500 stocks that hit 52-week low today

COMPANY	PRICE(rs)	52 WK LOW	CHG(rs)	CHG(%)
ITC	231.10	231.00	-3.55	-1.51
J & K BANK	27.40	27.30	-0.80	-2.84
RELIANCE CAPITAL	9.05	8.94	-0.27	-2.90

2:43 PM

MARKET CHECK:: Sensex extends losses; down 190 points now

2:35 PM

Global Markets check

Asian stocks took a battering on Tuesday as the death toll from a virus in China climbed, leaving investors fretting over the widening economic fallout from the outbreak and lifting bonds on expectations central banks would need to keep stimulus flowing.

MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.8 per cent. Japan’s Nikkei, which was down nearly 1 per cent at one point, closed 0.6 per cent lower. Australian shares ended 1.3 per cent down and South Korea’s Kospi index skidded 3 per cent.

In early European trades, the pan-region Euro Stoxx 50 futures and German DAX futures each rose 0.3 per cent while futures for London’s FTSE added 0.1 per cent. The S&P 500 e-mini contracts gained 0.5 per cent.

2:31 PM

Maruti Suzuki posts 4% YoY rise in Q3 consolidated profit at Rs 1,587 crore

On standalone basis, Maruti Suzuki's Q3 profit increased 5.1 per cent to Rs 1,565 crore while revenue was up 5.3 per cent to Rs 20,707. In terms of operating performance, Maruti's earnings before interest, tax, depreciation, and ammortisation (EBITDA) stood at Rs 2102 cr, up 8.9 per cent YoY while Ebitda margin stood at 10.1 per cent. READ MORE  

2:25 PM

BROKERAGE RADAR :: Anand Rathi Shares and Stock Brokers on DCB Bank

Higher margins and lower opex led to a 115bp sequential increase in C/I, which improved to 54.4%. The lower tax rate counterbalanced higher credit costs, keeping RoA above 1%. Loan growth was at a many- year low of 11%. Higher slippages, however, led to deterioration in the asset quality. We expect business growth to pick up and asset quality to stabilise in the medium term. We maintain a Buy.

Our Jan’21 target of Rs 226 is based on the two-stage DDM model. This implies a ~1.8x P/BV multiple on its FY22e book. Risks: Less-than-expected loan-book growth, large slippages from the mortgage book.

2:15 PM

Index Contributors at this hour | Bharti Airtel declines 5%, RIL over 2%

2:11 PM

Result impact | Maruti extends slide as Q3 nos miss estimates

2:01 PM

Market check | Sharp slide in Sensex

1:44 PM

NEWS ALERT| Sales between April and Dec down 16.1% YoY: Maruti Suzuki

>> Company sold a total of 1,178,272 vehicles during the period, lower by 16.1% compared to the same period previous year.

>> Sales in the domestic market stood at 1,100,698 units, lower by 16.9%. Exports were at 77,574 units.

>> During the period, the Company registered Net Sales of Rs. 545,047 million, lower by 12.5% compared to the same period previous year. 

>> Net profit for the period stood at Rs. 43,589 million, lower by 23.6% compared to the same period previous year on account of lower sales volume

1:42 PM

NEWS ALERT | Maruti Suzuki says --

>> Company sold a total of 437,361 vehicles during the Quarter, up 2% YoY

>> Sales in the domestic market stood at 4,13,698 units, higher by 2%. Exports were at 23,663 units. 

>> Net Sales of Rs 19,649.1 crore, up 3.8% YoY

>> Net profit at Rs 1564.8 crore, up 5.1% YoY
 

1:39 PM

Earnings Alert | Maruti Suzuki Q3 results

>> Standalone Net profit at Rs 1,564.8 crore

>> Revenue from Sales at Rs 19,649.1 crore

>> Total revenue at Rs 20,706.8 crore

1:35 PM

BROKERAGE RADAR | Emkay Global Financial Services on Dr Reddy's

Our earlier Sell rating was largely premised on possible disappointments across three key products – gSuboxone, gNuvaring and gCopaxone – which seems to have largely played out. However, DRRD’s persistent focus on rationalizing cost and on non-US geographies has helped it deliver a strong improvement in the base business and negate this impact. We thus upgrade the rating to Hold from Sell, and now value these opportunities as part of the base business assuming full competition (vs. a lower multiple earlier due to their one-off nature). We increase the target price to Rs 3,190 and turn EW in EAP. 

1:33 PM

RESULT UPDATE:: Century Textiles Q3FY20 cons net profit down 57.4% at Rs 36 cr vs Rs 84.2 cr (YoY)

1:24 PM

ITC hits 52-wk low ahead of Q3 nos this week; here's what brokerages expect

Shares of ITC slipped over 1 per cent to hit a 52-week low of Rs 232.15 apiece on the BSE in the intra-day session on Tuesday. The fast moving consumer goods (FMCG) company is slated to announce its December quarter results for the current fiscal (Q3FY20) on Friday (January 31). At 12:55 pm, the scrip was trading 0.83 per cent lower at Rs 232.70 apiece on the BSE. The benchmark S&P BSE Sensex, on the other hand, was trading flat at 41,196 levels, up 41 points or 0.1 per cent. The S&P BSE Fast Moving Consumer Goods index was quoting 0.28 per cent lower at 11,788.5-mark. READ MORE

1:14 PM

Sebi diktat hits commercial papers; traded volume slips to Rs 34,659 crore

The mutual fund (MF) industry, which has been steadily bringing down its exposure to commercial papers (CPs) issued by non-banking financial companies (NBFC), seem to have further shunned the paper after a diktat by the capital market regulator to invest only in those that are listed with the exchanges. CPs are short-term debt instruments maturing in less than a year, and are issued by companies other than banks. READ MORE

1:04 PM

NEWS ALERT | Coal India gets environmental clearance for 17 coal mine projects: PTI

12:58 PM

Maruti Suzuki trades weaker ahead of Q3 results today

Kotak Securities expects Maruti's Q3FY20 revenue at Rs 22,707.8 crore while profit is seen at Rs 1,746.4 crore, up 17.3 per cent on a YoY basis.

 

"We expect revenues to increase by 16 per cent yoy in 3QFY20 led by 2 per cent increase in volumes and 9 per cent yoy increase in ASPs due to introduction of new safety regulations for entry-level cars and migration of the petrol portfolio to BS-VI," the brokerage said. READ PREVIEW HERE

12:53 PM

Small-caps continue to outperform benchmarks; S&P BSE small-cap index up 0.25%

12:44 PM

HDFC beats expectations in Q3; conservative provisioning offers comfort

Housing Development Finance Corporation’s (HDFC’s) December 2019 quarter (Q3) results beat the Street’s expectations on most operating parameters. While the housing financier major clocked over 3 times year-on-year (YoY) jump in its profit before tax to Rs 9,143 crore, its assets under management (AUM, which indicates the loan book size) grew 14 per cent. Analysts had pegged these two numbers at Rs 4,803 crore and 12-15 per cent, respectively. READ MORE

12:32 PM

NEWS ALERT | Airtel Africa posts net profit at $103 million, up 14.41% QoQ in Q3FY20: CNBC TV18

>> Net debt at $ 3,233 million

>> Revenue at $883 million, up 4.6% QoQ

12:24 PM

BROKERAGE RADAR | HDFC Securities on Zensar Technologies

We downgrade Zensar to NEU (from BUY), post disappointing 3QFY20, growth challenges and weak execution. Deal pipeline is healthy and TCV wins have

improved but not reflecting in growth. Margin recovery is slower than expected and Retail/Legacy drag is weighing on growth and margins. We cut FY22E Rev/EPS by 10.5/19.9% and reduce P/E multiple to 11x vs. 12x earlier. Our TP of Rs 177 is based on 11x (~14% discount to 5Y average) Dec-21E EPS.

12:21 PM

BROKERAGE RADAR | Centrum Broking on Biocon

We expect Biocon growth momentum to continue over medium term. We have looked at its product pipeline and expect new products to flow in as we move ahead like rh-Insulin and mabs etc. At Rs 292, Biocon is trading at 21.4x FY21E EPS of 11.4 and 16.1x FY22E EPS of 15.2. Management has announced a value unlocking for Biosimilar/Biologic segment beyond FY20E (until business restructuring is completed by FY20E). The key risk to our investment thesis remains increased competition or innovator tactics to keep higher market share.

12:19 PM

BROKERAGE RADAR | Motilal Oswal Financial Services on Automobiles

Valuation and view

• We prefer PVs over 2Ws/CVs. Mainstream 2W OEMs face the risk of demand uncertainty post BS6, imminent threat of EVs and scope of value migration. While the CV segment should see substantial cost inflation due to BS6, demand for CVs will have a big influence on freight availability and economic viability.
• We expect PVs to be the least impacted on a relative basis during the BS6 transition due to limited cost increase for petrol PVs (~70% of industry volumes) and scope of alternative fuels.
• In our view, valuations are partly reflecting the expected recovery in FY21. However, sustained volume recovery could drive mean reversion of profitability by FY22, in turn leading to an earnings upgrade. Valuations are reasonable considering the early-cycle earnings of FY21/22.
• Top Picks: MSIL and MSS in large-caps and AL and ENDU in mid-caps.

12:17 PM

BROKERAGE RADAR | Prabhudas Lilladher initiates coverage on IRCTC

Rating: BUY | CMP: Rs 1,004 | TP: Rs 1,339

 

Company Initiation - Monopoly play on rail travel & tourism

We expect tourism revenue/EBIT to grow at a CAGR of 9.1 per cent / 2.9 per cent over FY19-22E as IRCTC has footprints across all major tourism segments such as hotel bookings, rail, land, cruise & air tour packages and air ticket bookings. It has monopoly in rail tourism and operates various theme-based trains.