Breadth turns weak; Nifty below 12,200

Key equity barometers trimmed losses after hitting fresh intraday low in mid-afternoon trade. The Nifty slipped below the 12,200 mark. Market sentiment was affected by the International Monetary Fund (IMF) lowering India's growth forecast. Subdued quarterly results by key index constituents and negative global cues also put pressure on domestic shares.

At 14:28 IST, the S&P BSE Sensex, declined 177.25 points or 0.43% at 41,351.66. The Nifty 50 index was down 55.05 points or 0.45% at 12,169.50.

In the broader market, the S&P BSE Mid-Cap index was down 0.23% while the S&P BSE Small-Cap index slipped 0.09%.

The market breadth was weak. On the BSE, 994 shares rose and 1405 shares fell. A total of 178 shares were unchanged. In Nifty 50 index, 11 stocks advanced while 39 stocks declined.

Buzzing Index:

The Nifty Auto index fell 1.06% to 8,263.80, underperforming the benchmark Nifty Index.

TVS Motor Company (down 2.13%), Mahindra & Mahindra (down 2.12%), Maruti Suzuki India (down 1.41%), Eicher Motors (down 1.3%), Tata Motors (down 1.26%), Escorts (down 1.25%), Hero MotoCorp (down 0.97%) and Bajaj Auto (down 0.25%) declined. Ashok Leyland was up 1.18%.

The Federation of Automobile Dealers Associations (FADA) announced vehicle registration data for December 2019. FADA said that after two months of positive sales during the Festive Period in October and its spillover effect in November, Auto Sales fell once again in December. Despite robust inquiries and with offers and discounts at its peak, customers did not conclude on their purchase as expected, showing continued weakness in consumer sentiment.

On a YoY basis, overall vehicle registrations fell by 15%. Two-wheeler was down by 16%, passenger vehicle was down by 9% and commercial vehicle registrations de-grew by 21%. Only three-wheeler registrations were up by a mere percent.

With the December de-growth being the highest in this Fiscal Year, FADA shares its concern on falling auto sales and shifts its stance to very cautious for the near and mid-term as we inch towards BS VI transition.

Stocks in Spotlight:

ICICI Prudential Life Insurance Company advanced 0.20% to Rs 489.40. Consolidated net profit rose 1.80% to Rs 301.77 crore in Q3 December 2019 as against Rs 296.43 crore in Q3 December 2018. Net premium earned rose 8.66% to Rs 8,131 crore in Q3 December 2019 from Rs 7,482.95 crore in Q3 December 2018.

Pharma major Granules India rose 1.05% to Rs 148.70 after consolidated net profit rose 6.15% to Rs 64.02 crore on 11.42% increase in net sales to Rs 703.95 crore in Q3 December 2019 as against Q3 December 2018. The consolidated profit before tax rose 2.45% to Rs 88.90 crore in Q3 December 2019 over Rs 86.77 crore in Q3 December 2018.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.630% at 14:23 IST compared with 6.639% in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was trading at 71.21, compared with its previous closing low of 71.11.

In the commodities market, Brent crude for March 2020 settlement was down 27 cents a barrel at $64.85 per barrel. The contract rose 23 cents or 0.35% to settle at $64.85 a barrel in Friday's session.

MCX Gold futures for 5 February 2019 settlement fell 0.16% to Rs 39,884.

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