Benchmarks trade with modest losses

Key market barometers continued trading with modest losses in mid-afternoon trade. Negative global cues spoiled sentiment. Trading was volatile after the Supreme Court rejected the plea seeking new schedule of adjusted gross revenue (AGR) payments and ordered contempt proceedings against Bharti Airtel and Vodafone Idea.

At 14:27 IST, the S&P BSE Sensex, was down 140.48 points or 0.34% at 41,319.31. The Nifty 50 index lost 41.70 points or 0.34% at 12,132.95.

In the wider market, the S&P BSE Mid-Cap index was down 0.39% while the S&P BSE Small-Cap index gained 0.04%.

The market breadth was negative. On the BSE, 963 shares rose and 1471 shares fell. A total of 155 shares were unchanged. In Nifty 50 index, 18 stocks advanced while 32 stocks declined.

Buzzing Index:

The Nifty PSU Bank index fell 1.46% to 2,223.45, underperforming the other sectoral indices on the NSE. State-run banks declined after the Supreme Court rejected Bharti Airtel and Vodafone Idea's plea seeking to neogtiate the payment schedule in the AGR case. Banks have high exposures to the telecom sector. If telcos default on these payments, it will have impact on the banking system.

UCO Bank (down 3.75%), Indian Bank (down 2.38%), Punjab & Sind Bank (down 2.02%), State Bank of India (down 1.66%), Punjab National Bank (down 1.62%), Central Bank of India (down 1.43%), Bank of Baroda (down 1.42%), Allahabad Bank (down 1.3%), IDBI Bank (down 1.26%), Syndicate Bank (down 1.26%), Union Bank of India (down 1.03%), Canara Bank (down 0.98%), Corporation Bank (down 0.65%) and Bank of India (down 0.08%) declined.

Bank of Maharashtra (up 0.99%), Andhra Bank (up 0.64%) and United Bank of India (up 0.25%) advanced.

Q3 earnings:

Shree Cement slipped 0.99% to Rs 24390. The cement manufacturer's consolidated net profit fell 5.18% to Rs 309.63 crore in Q3 December 2019 from Rs 326.56 crore in Q3 December 2018. Revenue from operations stood at Rs 3146.01 crore in Q3 FY20, up marginally from Rs 3139.76 crore in Q3 FY19.

Shree Renuka Sugars slumped tanked 7.72% to Rs 7.17. The sugar maker reported a consolidated net loss of Rs 208.6 crore in Q3 December 2019 as compared to a net profit of Rs 311.1 crore in Q3 December 2018. Total income declined to Rs 1003.9 crore in Q3 FY20, down by 11.93% from Rs 1140 crore in Q3 FY19.

Hindustan Copper slumped 7.02% to Rs 38.40. The vertically integrated copper producer reported a consolidated net loss of Rs 95.61 crore in Q3 December 2019 as compared a net profit of Rs 34.53 crore in Q3 December 2018. Net sales slumped 80.3% to Rs 93.29 crore reported in Q3 FY20 as compared to Rs 474.22 crore reported in the same period last year.

Stocks in Spotlight:

Adani Enterprises rose 2.39% to Rs 257.45. The company informed that Adani Ahmedabad International Airport, Adani Lucknow International Airport and Adani Mangaluru International Airport, wholly-owned subsidiaries of the company have signed the concession agreement on 14 February 2020 with Airports Authority of India for the operations, management and development of Ahmedabad, Lucknow and Mangaluru airports respectively. The concession period is 50 years from the commercial operation date.

Adani Green Energy surged 4.06% to Rs 207.85. The company has entered into a binding agreement with Total, who will invest $510 million for the acquisition of a 50% stake in a JV company which will house 2,148 MWAC operating solar projects presently which are 100% owned by Adani Green Energy.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.419% at 14:20 IST compared with 6.423% in the previous trading session.

In the foreign exchange market, the rupee depreciated against the dollar. The partially convertible rupee was trading at 71.34, compared with its previous closing low of 71.26.

In the commodities market, Brent crude for April 2020 settlement was up 9 cents at $56.43 a barrel. The contract rose 55 cents or 0.98% to settle at $56.34 a barrel in the previous trading session.

MCX Gold futures for 5 February 2019 settlement rose 0.02% to Rs 40,665.

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