Nifty drops below 12,000 on negative Asian stocks

Local stocks saw gap-down opening on negative Asian stocks. At 9:18 IST, the barometer index, the S&P BSE Sensex, was down 164.91 points or 0.4% at 40,890.78. The Nifty 50 index was down 54.25 points or 0.45% at 11,991.55. The Nifty dropped below the psychological 12,000 mark in early trade.

The S&P BSE Mid-Cap index was down 0.48%. The S&P BSE Small-Cap index was down 0.13%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 334 shares rose and 682 shares fell. A total of 35 shares were unchanged.

Stocks in news:

Reliance Industries (RIL) slipped 0.7%. Network18 Media & Investments rose 5%. Den Networks gained 9.98%. TV18 Broadcast jumped 17.89%. Hathway Cable & Datacom surged 20%. RIL announced a consolidation of its media and distribution businesses spread across multiple entities into Network18. Under the Scheme of Arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments. The Appointed Date for the merger shall be 1 February 2020. The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18.

For every 100 shares, shareholders of TV18 Broadcast will receive 92 shares of Network 18, Hathway shareholders will get 78 shares of Network18 and Den shareholders 191 shares of Network18.

Tata Motors lost 1.86%. Tata Motors said the company is desirous of offering Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures aggregating Rs 500 crores in two tranches and in this regard is holding a meeting of its duly constituted Committee of the Board on 24 February 2020.

HCL Technologies rose 0.25%. HCL Technologies announced a new large contract with New Zealand dairy co-operative Fonterra to modernise and manage the entire technology infrastructure Fonterra employees around the world use every day.

The multi-year partnership with HCL Technologies will consolidate Fonterra's technology suppliers and bring together the Co-op's IT infrastructure services under one umbrella. The technology edge services provided by HCL will enhance Fonterra's employee experience, to navigate through their business operations.

Vodafone Idea slumped 11.11%. Care Ratings (CARE), has downgraded its rating on Long Term Bank Facilities and Non-Convertible Debentures of Vodafone Idea on account of significant erosion in the overall risk profile of the company while taking into cognizance of the financial impact of no relief being granted on modification plea on 14 February 2020 of telecom companies (telcos) seeking new schedule of Adjusted Gross Revenues (AGR) dues by Supreme Court and significant losses to the tune of Rs 6453 crore in Q3FY20.

Meanwhile, the board has authorised the company to immediately pay to DoT a portion of the dues calculated based on AGR (Adjusted Gross Revenue), aggregating to a sum of Rs. 2,500 crores and a further Rs 1,000 crores before the end of the week. The Board will take further stock of the situation to see how further additional payments can be made.

JSW Energy gained 6.77%. JSW Energy had entered into exclusive discussions with GMR Energy (GEL) for potential acquisition of its subsidiary, GMR Kamalanga Energy (GKEL), which owns and operates a 1,050 MW (3x350 MW) thermal power plant in Odisha. The company has signed Share Purchase Agreement with GEL, pursuant to which the company shall acquire 100% stake in GKEL for a total consideration of an amount up to Rs 5321 crore (subject to working capital and other adjustments).

Global Markets:

Overseas, Asian stocks were trading lower on Tuesday, after Apple Inc. said quarterly sales would miss forecasts, illustrating the blow to corporate earnings and economic growth from the deadly coronavirus.

Apple makes most of its iPhones and products in China. The epidemic has caused the company to temporarily halt production and close retail stores in China. Some Apple retail stores reopened in China with reduced schedules last week.

U.S. financial markets are closed on Monday, in observance of Presidents Day.

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