MARKET WRAP: Sensex slips 73 pts amid selling in pvt banks, auto stocks
All that happened in markets today.
 "(Photo: Kamlesh Pednekar)")
(Photo: Kamlesh Pednekar)
Monday turned out to be a listless day for the benchmark indices; however, broader market witnessed some buying with the S&P BSE MidCap index surging nearly half a per cent.
The S&P BSE Sensex ended at 40,284, down 73 points or 0.18 per cent with Bharti Airtel (up nearly 5 per cent) being the top gainer and YES Bank (down 4 per cent) the biggest drag. HDFC Bank, Reliance Industries (RIL), TCS, L&T, and Asian Paints contributed the most to the index's loss. During the day, Sensex hit a high and low of 40,542.40 and 40,221.97, respectively.
Shares of telecom companies - Vodafone Idea and Bharti Airtel continued to surge after the government said it would not like any telecom operator in the country to shut operations. Bharti Airtel hit a 21-month high of Rs 420, up 7 per cent as most of the brokerages maintained a bullish stance on strong operating performance in September quarter (Q2FY20). The stock ended at Rs 409 on the BSE, up 4 per cent. Vodafone Idea zoomed naerly 21.50 per cent to Rs 4.47.
In the broader market, the S&P BSE MidCap index outperformed the benchmarks by surging 65 points or around 0.5 per cent to end at 14,838. Glenmark Pharma was the top gainer on the index. The stock zoomed 21 per cent to Rs 365.50 apiece on the BSE after global brokerage firm CLSA upgraded the stock to 'buy' from 'sell'. READ MORE
On the NSE, the Nifty50 index ended below 11,900 level at 11,894, down 1 point or 0.01 per cent with 29 constituents advancing, 20 declining and 1 remaining unchanged.
India VIX surged over 4 per cent to 15.67 levels, indicating increased volatility in the market.
Sectorally, FMCG and auto counters ended in the red while metal stocks advanced the most followed by PSU bank stocks. The Nifty Metal index gained nearly 2 per cent to 2,543.50 levels and the Nifty PSU Bank index added around 1.50 per cent to 2,493-mark.
GLOBAL MARKET
Asian shares ticked higher on Monday after Beijing surprised markets by trimming a key interest rate for the first time since 2015, stirring speculation that further stimulus was on the way for the world’s second-largest economy. The news helped Shanghai blue chips recoup early losses to rise 0.8 per cent, though the initial reaction was cautious overall. MSCI's broadest index of Asia-Pacific shares outside Japan moved 0.3 per cent higher.
Japan's Nikkei firmed 0.3 per cent, and was just short of its recent 13-month top. E-Mini futures for the S&P 500 held steady, as did EUROSTOXX 50 futures.
In commodities, oil prices were supported after Brent touched a seven-week high on Friday. Brent crude futures firmed 4 cents to $63.34, while US crude added 4 cents to $57.76 a barrel.
(With inputs from Reuters)
3:38 PM
Nifty snapshot :: Mid, small-caps outperform
India VIX up over 4%
3:37 PM
Sensex heat map
Banks, autos among top losers today
3:36 PM
Index watch
3:35 PM
CLOSING BELL
The S&P BSE Sensex lost 73 points or 0.18 per cent to settle at 40,284 while NSE's Nifty50 index ended at 11,894, down 1 point or 0.01 per cent.
3:21 PM
Govt looks to ease norms to attract global coal miners, industry sceptical
India plans to float global tenders for the first time for coal mining blocks before end-2019, sources familiar with the matter told Reuters in August, a move that could end Coal India Ltd's near-monopoly on the fuel. READ MORE
3:04 PM
MARKET CHECK
3:01 PM
SpiceJet in talks with Boeing to buy more 737 Max planes: Ajay Singh
Indian low-cost carrier SpiceJet Ltd. is in talks with Boeing Co. to buy more 737 Max aircraft to feed its expansion plans, a deal that could mark a Dubai Airshow coup for the grounded narrow-body.
A sales lull for the Max, idled globally since March, allows SpiceJet to acquire planes at a lower cost, Chairman Ajay Singh said in an interview with Bloomberg TV at the biennial event. He said the carrier is looking to set up a new hub in the Middle East and expand to eastern Europe. READ MORE
2:50 PM
BROKERAGE RADAR | LKP Securities on ICICI Bank
Loans are estimated to grow by 16.8% CAGR over FY20-22e led by both retail and corporate advances. Retail loans, which currently form 60% of the advances, are expected to grow at CAGR of 21% over FY20-22e led by home loans, unsecured loans like PL and credit cards. In corporate sector, incremental demand is coming from refinancing, public sector companies, road sector and gas distribution side while there is no fresh capacity being generated. However, the bank is witnessing utilization rates going up in power and cement sector, hence there could be possibility of capex coming there.
We value the bank at Rs 598 with BUY rating, assigning multiple of 2.6x FY21e ABV of the bank and valuing the subsidiaries at Rs 138 post 15% holdco discount. Currently, the bank is trading at 2x FY21e ABV on standalone basis. We expect re-rating of the bank to continue in coming quarters as well.
We value the bank at Rs 598 with BUY rating, assigning multiple of 2.6x FY21e ABV of the bank and valuing the subsidiaries at Rs 138 post 15% holdco discount. Currently, the bank is trading at 2x FY21e ABV on standalone basis. We expect re-rating of the bank to continue in coming quarters as well.
2:40 PM
BUZZING STOCK | Hind Rectifiers surges 13%
2:31 PM
Rupee check
Photo: Bloomberg
2:29 PM
S&P revises Tata Steel UK's outlook to stable, 'B+' Rating Affirmed
Standard & Poor’s has revised its outlook on Tata Steel UK Holdings (TSUKH) from “positive” to “stable” in line with parent Tata Steel.
The outlook revision reflects view that Tata Steel will deleverage slower than earlier expectations as the outlook for steel prices weakened materially over the last three quarters. READ MORE
2:19 PM
> More on NSE Indices
Broader indices outperform
| INDEX | LATEST | PREVIOUS | CHANGE | CHANGE(%) |
|---|---|---|---|---|
| NIFTY 50 | 11882.10 | 11895.45 | -13.35 | -0.11 |
| NIFTY 500 | 9664.55 | 9667.30 | -2.75 | -0.03 |
| NIFTY MIDCAP 100 | 16882.70 | 16803.85 | 78.85 | 0.47 |
| NIFTY SMALL 100 | 5692.25 | 5675.25 | 17.00 | 0.30 |
| INDIA VIX | 16.00 | 15.03 | 0.97 | 6.45 |
2:15 PM
Anand Rathi Resrach on AIA Engineering
With de-stocking in the mining sector, AIA's revenue declined 6 per cent y/y. As inventories at its plant were high, production was curtailed, by 18 per cent y/y to 59,078 tons. With lower ferro-chrome prices, FY20 and FY21 margins are likely to expand. Concerns about the Vale mines continue. Factoring in the short-term uncertainties in the industry and the lower management guidance, we reduce our multiple from 30x to 28x. However with customers added and greater profitability, we retain our Buy, with a target of Rs 1,995 (28x FY21e earnings).
2:04 PM
India Inc Q2 profit at 15-yr low on record telco losses, net sales dip 0.8%
India’s listed companies, excluding financials and oil and gas, reported a combined net loss for the first time in at least 15 years, while their net sales contracted for the first time in four years in the July-September quarter (second quarter, or Q2). While the bottom line slipped into the red due to record losses posted by mobile operators during the quarter, the decline in sales is attributed to demand contraction in the domestic economy. READ MORE
2:04 PM
Tata Steel extends gain after S&P revises UK holdings' outlook to 'stable'
Topics : Markets MARKET WRAP
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First Published: Nov 18 2019 | 7:41 AM IST