Firmness persists on positive global cues

Key equity barometers held firm at higher levels in mid-afternoon trade, supported by positive global shares as concerns over the ongoing coronavirus outbreak abated. At 14:26 IST, the S&P BSE Sensex, gained 395.41 points or 0.96% at 41,611.55. The Nifty 50 index was up 105.40 points or 0.87% at 12,213.30.

The broader market witnessed profit selling. The S&P BSE Mid-Cap index was down 0.17% while the S&P BSE Small-Cap index was down 0.11%.

The market breadth favored the sellers. On the BSE, 937 shares rose and 1442 shares fell. A total of 177 shares were unchanged. In Nifty 50 index, 36 stocks advanced while 14 stocks declined.

Buzzing Segment:

The Nifty Realty index was down 1.15% to 314.15. Sunteck Realty (down 2.51%), D B Realty (down 2.32%), Godrej Properties (down 2.19%), DLF (down 1.8%), Prestige Estates (down 1.67%), Sobha (down 1.06%), Anant Raj Industries (down 0.9%), Mahindra Lifespace Developers (down 0.76%) and Parsvnath Developers (down 0.47%) declined.

Stocks in Spotlight:

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) rose 2% to Rs 193.50. On a consolidated basis, GNFC net profit dropped 32.5% to Rs 113.49 crore in Q3 December 2019 (Q3 FY20) as against Rs 168.09 crore reported in Q3 December 2018 (Q3 FY19). Net sales rose 4.8% year-on-year (Y-o-Y) to Rs 1,277.66 crore in Q3 FY20. Profit before tax (PBT) jumped 51.9% to Rs 133.90 crore Y-o-Y. The Q3 earning numbers were announced after trading hours yesterday, 11 February 2020.

IPCA Laboratories surged 4.95% to Rs 1309.55. On a consolidated basis, IPCA Laboratories' net profit jumped 24% to Rs 197.54 crore in Q3 December 2019 as against 159.11 crore posted in Q3 December 2018. Consolidated Revenue from Operations surged 21% to Rs 1212.86 crore in Q3 December 2019 as compared with Q3 December 2018. Profit before tax (PBT) for Q3 December 2019 stood at Rs 234.43 crore, up by 19.28% from Rs 196.53 crore reported in Q3 December 2018. Tax expense declined 1% to Rs 36.89 crore in Q3 December 2019 over Q3 December 2018. Company's consolidated EBITDA before Forex jumped 37% to Rs 290.03 crore in Q3 December 2019 as compared to Rs 211.26 crore posted in Q3 December 2018. Consolidated EBITDA margin grew to 23.56% in Q3 December 2019 from 20.72% recorded in Q3 December 2018.

City Union Bank was down 0.50% at Rs 229. The private lender reported a 8.04% jump in net profit to Rs 192.43 crore in Q3 December 2019 as against net profit of Rs 178.10 crore in Q3 December 2018. Total income rose 10.75% year-on-year (YoY) to Rs 1203.23 crore in Q3 December 2019. Profit before tax (PBT) was almost flat at Rs 227.43 crore in Q3 December 2019 as against Rs 228.10 crore in Q3 December 2018. Net interest income moved up by 2% YoY to Rs 427.26 crore during the period under review. Advances grew by 10% to Rs 33,828 crore while deposits increased by 12% to Rs 39,812 crore during the stated period. CASA deposits grew by 10% as on December 2019, which is 23% of total deposits. Gross non-performing assets (NPAs) stood at Rs 1185.42 crore as on 31 December 2019 as against Rs 1135.43 crore as on 30 September 2019 and Rs 891.91 crore posted in 31 December 2018. The ratio of gross NPAs to gross advances stood at 3.50% as on 31 December 2019 as against 3.41% as on 30 September 2019 and 2.91% as on 31 December 2018. The ratio of net NPAs to net advances stood at 1.95% as on 31 December 2019 as against 1.90% as on 30 September 2019 and 1.74% as on 31 December 2018.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.482% at 14:19 IST compared with 6.464% in the previous trading session.

In the foreign exchange market, the rupee depreciated against the dollar. The partially convertible rupee was trading at 71.3175, compared with its previous closing low of 71.2750.

In the commodities market, Brent crude for April 2020 settlement was up $1.29 at $55.30 a barrel. The contract rose 74 cents or 1.38% to settle at $54.01 a barrel in the previous trading session.

MCX Gold futures for 5 February 2019 settlement fell 0.19% to Rs 40,335.

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