Indices trade flat; metal stocks tumble

Key equity indices hovered near the flat line in mid-morning trade. Metal shares were under pressure amid the risk to commodity demand from the spread of a new flu-like virus in China. The Nifty traded tad above the 12,100 mark. At 11:23 IST, the S&P BSE Sensex, was up 25.27 points or 0.06% at 41,158.02. The Nifty 50 index was up 0.65 points or 0.01% at 12,119.65.

The broader market traded with minor gains. The S&P BSE Mid-Cap index was up 0.05% while the S&P BSE Small-Cap index was up 0.26%.

The market breadth, indicating the overall health of the market, was almost even. On the BSE, 1021 shares rose and 1003 shares fell. A total of 125 shares were unchanged. In Nifty 50 index, 19 stocks advanced while 31 stocks declined.

Buzzing Index:

The Nifty Metal declined 1.61% to 2,666.10, extending losses for second session. The index has tumbled 4.65% in two days. The China virus outbreak could sap demand for industrial metals if it spreads far enough to make an impact on China's construction season, which tends to start in earnest after the Lunar New Year break.

Steel Authority of India (down 3.48%), Vedanta (down 2.82%), Tata Steel (down 2.32%), JSW Steel (down 2.19%) and Jindal Steel & Power (down 2.15%) Coal India (down 1.37%), Hindalco Industries (down 0.96%), Tata Metaliks (down 0.88%), National Aluminium Company (down 0.77%), NMDC (down 0.76%) and Hindustan Zinc (down 0.55%) were top losers in metal segment.

Stocks in Spotlight:

Alembic Pharmaceuticals rose 2.03% to Rs 627.25 after the company received final US drug regulator's final approval for Azithromycin tablets USP, 600 mg. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD) Zithromax Tablets, 600 mg, of Pfizer, Inc. (Pfizer). Azithromycin tablet is a macrolide antibacterial drug indicated for mild to moderate infections caused by designated, susceptible bacteria in acute bacterial exacerbations of chronic bronchitis in adults; acute bacterial sinusitis in adults

InterGlobe Aviation rose 0.55% to Rs 1,501 after consolidated net profit surged 167.86% to Rs 495.97 crore on a 25.45% jump in net sales to Rs 9,931.68 crore in Q3 December 2019 over Q3 December 2018. Consolidated profit before tax soared 205.16% to Rs 556.63 crore in Q3 December 2019 over Rs 182.40 crore in Q3 December 2018. Consolidated tax expense for Q3 December 2019 stood at Rs 60.56 crore as compared to a tax credit of Rs 2.76 crore received in Q3 December 2018.

Adani Green Energy rose 0.24% after the company received approval from Maharashtra Electricity Regulatory Commission for 700 megawatt Solar Hybrid Capacity Power Project. The project is expected to be commissioned by Q2FY2022.

Global Markets:

Overseas, most Asian markets were trading lower on Tuesday as the spread of the coronavirus in Asia fed risk-off sentiment among traders. China took more drastic steps to combat the coronavirus, while bonds found favour on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.

US markets on Monday closed sharply lower, with all three indexes posting their worst daily losses in months, amid growing worries about the economic implications of a rising death tolls and growing infections from a fast-moving virus in China.

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