MARKET WRAP: Sensex slips 330 pts on Moody's outlook cut; Sun Pharma down 4%
All that happened in markets today.
 "MARKET WRAP: Sensex slides 330 pts on Moody's downgrade; Sun Pharma down 4%")
After showing resilience in the early hours of the trade, stock market came under heavy selling pressure in the last hour of the session on Friday after global rating agency Moody's lowered India's outlook to 'negative' from stable. Further, reports that the rating agency has also revised outlook of IT majors Infosys and TCS along with six financial companies such as Exim India, HDFC Bank, Hero FinCorp, HUDCO and SBI to negative, too, spooked market participants.
The S&P BSE Sensex lost 330 points or 0.81 per cent to settle at 40,324. During the day, the index hit a fresh lifetime high of 40,749.33. YES Bank (up nearly 4 per cent) emerged as the top gainer on the index while Sun Pharma (down over 4 per cent) was the biggest loser. TCS, Infosys, Reliance Industries (RIL), ITC, and Hindustan Unilever (HUL) were the top contributors to the index's fall. Of 30 constituents, 24 ended in the red and just 6 in the green.
Market breadth remained in favour of declines as of 2,697 companies traded on the BSE, 1,472 declined and 1,047 advanced while 178 remained unchanged.
On the NSE, the Nifty50 slipped below 12,000-mark to end at 11,908, down 104 points or 0.86 per cent. The index hit a high of 12,034.15 during the day.
On a weekly basis, Sensex gained 0.39 per cent while Nifty added 0.14 per cent.
Volatility index India VIX spiked over 4 per cent to 15.86 levels.
In the broader market, the S&P BSE MidCap index lost 117 points or 0.79 per cent to end at 14,731 and the S&P BSE SmallCap closed 71 points or 0.53 per cent lower at 13,475 levels.
SECTOR WATCH
Barring realty and private banks, all the sectoral indices on the NSE ended in the red. Pharma stocks saw the steepest fall, followed by PSU banks and FMCG stocks. The Nifty Pharma index slipped over 2 per cent to 7,787.40 levels while Nifty PSU Bank index ended at 2,437, down neary 2 per cent. On the other hand, Nifty Realty ended 1.66 per cent higher at 281 levels. Nifty Private Bank index gained 0.70 per cent to settle at 16,996.
SECTOR WATCH
Barring realty and private banks, all the sectoral indices on the NSE ended in the red. Pharma stocks saw the steepest fall, followed by PSU banks and FMCG stocks. The Nifty Pharma index slipped over 2 per cent to 7,787.40 levels while Nifty PSU Bank index ended at 2,437, down neary 2 per cent. On the other hand, Nifty Realty ended 1.66 per cent higher at 281 levels. Nifty Private Bank index gained 0.70 per cent to settle at 16,996.
BUZZING STOCKS
Shares of DLF surged 6 per cent to Rs 204 on the BSE after the company reported a strong set of numbers for the quarter ended September 2019 (Q2FY20). Additionally, stock of the real estate developer was also included in the MSCI Global Standard Index with effect from November 26, 2019. The stock ended at Rs 203.20, up 5.59 per cent. READ MORE
Shares of Raymond soared 20 per cent to Rs 808 on the BSE after the company announced its plan to demerge its core Lifestyle business and list it as a separate entity. Furthermore, the company announced to use the entire net proceeds from sale of land parcel by JKIT (its Associate Company) for deleveraging of its Balance Sheet. READ MORE
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Shares of DLF surged 6 per cent to Rs 204 on the BSE after the company reported a strong set of numbers for the quarter ended September 2019 (Q2FY20). Additionally, stock of the real estate developer was also included in the MSCI Global Standard Index with effect from November 26, 2019. The stock ended at Rs 203.20, up 5.59 per cent. READ MORE
Shares of Raymond soared 20 per cent to Rs 808 on the BSE after the company announced its plan to demerge its core Lifestyle business and list it as a separate entity. Furthermore, the company announced to use the entire net proceeds from sale of land parcel by JKIT (its Associate Company) for deleveraging of its Balance Sheet. READ MORE
Shares of GAIL slipped nearly 4 per cent to Rs 127 on the BSE after the company posted a consolidated net profit of Rs 1,167.58 crore, down 34.7 per cent year-on-year (YoY) for September quarter of FY19. The company had posted net profit of Rs 1,788.98 crore in the year-ago period. READ MORE
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4:08 PM
MARKET COMMENT | Vinod Nair, Head of Research, Geojit Financial Services
Rating downgrade forced investors to book profit in a volatile market and rupee weakened to three-week low. Given the subdued performance of the equity market during the year, MF inflows fell to four month-low while premium valuation of large and blue-chips is not attracting new funds in the market.
4:03 PM
Sectoral gainers and losers on the NSE
4:03 PM
Top losers and gainers on the S&P BSE Sensex
3:39 PM
CLOSING BELL
The S&P BSE Sensex declined 330 points or 0.81 per cent to end at 40,323.61 while NSE's Nifty50 index ended at 11,908.15, 104 points or 0.86 per cent.
3:14 PM
Market check | Markets decline after Moody's revises outlook to 'negative' on Indian cos
3:10 PM
NEWS ALERT | Moody's revises outlook of TCS, Infosys to negative
- It has also revied the outlook of HDFC Bank, SBI, HUDCO, IRFC, Hero FinCorp and Exim India to negative;
- Bank of India, Canara Bank, Syndicate Bank & Union bank at STABLE
3:08 PM
Allahabad Bank's net loss widens in Q2 to Rs 2,114 cr; stock tumbles 11%
Shares of Allahabad Bank slipped up to 11.2 per cent to Rs 23.95 per share in the afternoon trade on the BSE on Friday after the bank's standalone loss in the Sepember quarter of FY20 (Q2FY20) widened to Rs 2,114 crore. The bank had incurred a loss of Rs 1,823 crore in the corresponding quarter of the previous fiscal. Besides, the bank's asset quality deteriorated in the recently concluded quarter. READ MORE
3:01 PM
MARKET CHECK | Sharp decline in market
2:48 PM
NEWS ALERT | Moody's cuts outlook of 6 Indian financial cos to negative
2:40 PM
GAIL Q2 net profit drops 34% YoY to Rs 1,167.6 cr; stock falls over 4%
GAIL, the state-owned natural gas processing and distribution company, on Friday posted a consolidated net profit of Rs 1,167.58 crore, down 34 per cent year-on-year (YoY) for September quarter of FY19. The company had posted net profit of Rs 1,788.98 crore in the year-ago period.
Profit before tax (PBT) for the quarter under review came in at Rs 1,706.47 crore against Rs 2,700.84 in the corresponding quarter of the previous fiscal. READ MORE
2:28 PM
Earnings Alert | Eicher Motors Q2
-- Net profit at Rs 570.5 crore, up 18.5% YoY
-- Revenue at Rs 2,181.9 crore, down 9.2% YoY
-- Tax expense at Rs 28.8 crore vs Rs 260 cr YoY
-- EBITDA at Rs 546.1 crore
-- Other income at Rs 145 crore
-- Revenue at Rs 2,181.9 crore, down 9.2% YoY
-- Tax expense at Rs 28.8 crore vs Rs 260 cr YoY
-- EBITDA at Rs 546.1 crore
-- Other income at Rs 145 crore
2:27 PM
Moody's rating unjustified; experts for aggressive rate cut by RBI
Calling the downgrade in India’s sovereign rating from stable to negative by Moody’s as unexpected and unjustified, the clamour for more aggressive rate cut by the Reserve Bank of India (RBI) to prop-up growth has grown stronger. READ MORE
Moody’s Investors Service
2:26 PM
MSCI Nov rejig: Berger Paints, ICICI Pru Life, DLF included; YES Bank exits
Morgan Stanley Capital International (MSCI) last night announced big semi-annual rebalancing in its global standard index, as per reports. The changes will come into effect from November 26 post market hours, the report added.
A total of 78 stocks have witnessed changes in the latest rejig. Berger Paints, Colgate Palmolive, DLF and HDFC AMC are reported to be included in the index. Other stocks in the 'inclusions' list includes ICICI Pru Life, Info Edge, SBI Life Insurance and Siemens READ MORE HERE
The MSCI logo is seen in this June 20, 2017. Photo: Reuters
2:25 PM
Anand Rathi on Greenlam Industries
After a weak Q1, Greenlam reported sturdy results in Q2 with revenue/ EBITDA/PAT up 10%/23%/51% y/y, powered by laminates. Veneer continues to face challenges while utilisation at the newer segments improved (though reporting small losses). We raise our FY21e EPS ~12% chiefly due to higher laminate revenues. Persistent demand weakness in real estate activities and losses in the newer segments (engineered wood-floors and doors), for which investment had already been made, pose downside risks to our 29% PAT CAGR estimate. We retain a Hold rating, with a higher TP of Rs 1,005 (19x FY21e EPS), earlier Rs 851
2:24 PM
Anand Rathi maintains SELL on Wabco India
We believe that Wabco?s OEM business will recover from H2 FY21 as we expect replacement demand to kick in for M&H CVs. This, coupled with growth in the replacement market and exports, we expect strong revenue and earnings growth over FY20-22. However, given expensive valuations, we maintain a Sell at a target price of Rs 5,056
Topics : Markets MARKET WRAP
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First Published: Nov 08 2019 | 7:30 AM IST