Sensex slips 210 pts amid weak global cues; Voda Idea up 7% ahead of Q4 nos

All that happened in the markets today

The Nifty Midcap 100 index fell 1.6 per cent while the Nifty SmallCap 100 index shed 1.38 per cent (Photo credit: Kamlesh Pednekar)

The Indian equity market ended over 0.5 per cent lower on Monday, dragged down by financial and metal stocks. The Standard and Poor’s warning that the Indian economy is in deep trouble also weighed on investor sentiment. The rater has projected the Indian economy's growth to contract by 5 per cent this fiscal.

Further, the decline in global stocks due to a surge in the Covid-19 cases continued to be on the investors' radar.

The headline index S&P BSE Sensex slipped 210 points or 0.6 per cent to settle at 34,961.52. During the session, the index hit a high and low of 35,032.36 and 34,662.06 levels, respectively.

NSE's Nifty ended the day at 10,312, down 71 points or 0.68 per cent.

Among individual stocks, Axis Bank, IndusInd Bank, and Bajaj Finance slipped up to 5 per cent. Notably, S&P had downgraded the ratings of both Axis Bank and Bajaj Finance during the weekend. On the other hand, shares of ITC rose as much as 4 per cent after the announcement of its March quarter results.

Meanwhile, Vodafone Idea ended 7 per cent higher at Rs 11.12 on the BSE ahead of its March quarter results due tomorrow. READ MORE

The trends at the sectoral front remained weak as barring Nifty FMCG, all the other indices on the NSe ended in the red. Nifty PSU Bank index slipped over 3 per cent while Nifty Metal index fell 2.64 per cent. Nifty FMCG, on the other hand, gained 0.72 per cent.

The second-rung stocks underperformed the benchmarks. For instance, the Nifty Midcap 100 index fell 1.6 per cent while the Nifty SmallCap 100 index shed 1.38 per cent.

Global markets

World shares hit two-week lows and oil fell nearly 2 per cent on Monday as the relentless spread of the coronavirus curbed optimism on the global economy, prompting investors to take shelter in safe-haven bonds and gold.

European stocks opened slightly lower, after Asian shares ended deep in the red playing catch up with Wall Street’s ugly close on Friday as some US states reconsidered their reopening plans.

MSCI’s world shares index was off 0.2 per cent, hitting its lowest level since June 15 dragged down by Japan’s Nikkei shedding 2.2 per cent and Chinese blue chips off 0.9 per cent. E-Mini futures for the S&P 500 were up 0.1 per cent.

In commodities, oil prices slid. Brent crude dropped 84 cents, or 2 per cent, to $40.18 a barrel at the time of writing of this report, and US crude fell 72 cents, or 1.8 per cent, to $37.77.

(With inputs from Reuters)

4:06 PM

MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

"Benchmark indices ended on a negative note, on the back of mixed global cues as surging virus cases around the world and especially in the US, threatened to derail the economic recovery hopes. With states in India set to extend lockdown or reconsidering bringing back lockdown measures, markets seem to be weighing the bad news. As before, the uptrend remains intact but the upside may be capped."

3:44 PM

SECTOR WATCH:: Nifty FMCG gains 0.72%

3:43 PM

MARKET AT CLOSE:: Losers and gainers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex declined 210 points or 0.6 per cent to end at 34,961.52 while NSE's Nifty ended at 10,312, down 71 points or 0.68 per cent.

3:28 PM

MARKET CHECK

3:21 PM

MARKET CHECK:: Top 5 losers on the BSE at this hour

3:15 PM

BROKERAGE VIEW:: Centrum Broking on HG Infra Engg

HG’s strong OB with a progressive improvement in share of executable orders over next 6 months gives it strong scalability potential. Margins have remained steady and leverage should continue to remain low at 0.5x Net Debt/EBITDA (1.2x after including mobilisation advances as debt). Valuations at 9.6x/6.4x FY21/22E EPS are inexpensive and protect downside. We value HG’s EPC business at 9xFY22 EPS and value equity invested in road assets at Rs 38/share on 0.7x P/B basis. Maintain Buy with PT of Rs 320.

3:07 PM

Index heavyweights Reliance Industries and HDFC contribute the most to the Sensex's fall today

2:57 PM

Vodafone Idea extends rally into third day ahead of Q4 results on Tuesday

Brokerage firm Kotak Institutional Equities expects a 6 per cent quarter on quarter (QoQ) increase (flat on a yearly basis) in revenue on the back of a full-quarter benefit from the December tariff hikes, partly offset by subscriber loss to 296 mn (304 mn in 3QFY20). READ MORE

2:46 PM

Bharat Forge shares slip 10% on weak March quarter earnings

Shares of Bharat Forge slipped 10 per cent to Rs 317 in the intra-day trade on the BSE on Monday after the company reported a consolidated net loss of Rs 68.59 crore for the quarter ended March 2020 (Q4FY20), due to lower sales and one-time exceptional loss. The company had posted a net profit of Rs 324 crore in year-ago quarter.

Consolidated revenue from operations declined 34.8 per cent year-on-year (YoY) at Rs 1,742 crore against Rs 2,671 crore in the previous year quarter. READ MORE

2:38 PM

Fall from intra-day highs today

COMPANY	DAY'S HIGH(RS)	DAY'S LOW(RS)	LATEST(RS)	FALL(%)
OMAXE	222.20	176.45	176.45	-20.59
SOMANY CERAMICS	135.00	116.45	118.00	-12.59
NAVA BHARAT VENT	59.85	53.60	53.75	-10.19
BHARAT FORGE	353.40	317.40	320.60	-9.28

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2:32 PM

Why is big tech flirting with Indian telcos?

What is hidden in Facebook’s 9.99 per cent acquisition of Jio Platforms (JPL) is Facebook’s indirect acquisition of at least 9.99 per cent economic interest in Jio Infocomm (Jio). Before the announcement of the Facebook deal, Reliance strategically made Jio a wholly-owned subsidiary of JPL. What made an investment in JPL so attractive was a slice of the world’s largest telco with huge growth potential. This deal has changed investors’ perception about the Indian telecom sector and set the ball rolling for big investments in Indian telcos. READ MORE

2:22 PM

It's not the lockdown but enabling of a false theory, says Rajiv Bajaj

Bajaj Auto’s plant in Waluj, Aurangabad, has seen an exponential rise in the number of Covid-19 cases with three of its employees succumbing to the disease. Rajiv Bajaj, managing director, Bajaj Auto, tells Shally Seth Mohile the numbers going up is inevitable, not only at Bajaj Auto but everywhere, with the unlock. READ INTERVIEW HERE