Key equity benchmarks extended losses and hit fresh intraday low in afternoon trade. At 13:40 IST, the barometer index, the S&P BSE Sensex fell 282.97 points or 0.68% at 41,330.22. The Nifty 50 index lost 76.15 points or 0.62% at 12,172.10.
The S&P BSE Mid-Cap index was up 0.08%. The S&P BSE Small-Cap index rose 0.42%.
The market breadth was negative. On the BSE, shares 1,082 rose and 1,270 shares fell. A total of 161 shares were unchanged.
Economy
The divestment of Air India restarted on Monday (27 January) with the government seeking to sell 100% of its equity share capital in the state-owned airline, including Air India's shareholding interest of 100% in AI Express and 50% in Air India SATS Airport Services. The sale will be implemented through the open bidding route, with 17 March being set as the deadline for interested parties to submit their bids. Those interested in bidding for Air India must have a net worth of Rs 3,500 crore. Management control of the airline would also be transferred to the successful bidder.
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Q3 Results:
Housing Development Finance Corporation (down 1.35%), IIFL Finance (up 0.44%), Interglobe Aviation (down 0.69%), Torrent Pharmaceuticals (down 0.52%), United Spirits (up 0.05%) and Wockhardt (up 5.85%) are set to announce their Q3 December 2019 earnings today, 27 January 2020.
Top Gainers & Losers:
Mahindra & Mahindra (up 2.37%), Bajaj Auto (up 1.39%), Maruti Suzuki India (up 1.14%), Ultratech Cement (up 1.13%) and Asian Paints (up 0.77%) advanced.
Tata Steel (down 3.20%), Vedanta (down 2.89%), Hindalco Industries (down 2.48%), HDFC Bank (down 2.11%) and IndusInd Bank (down 1.87%) declined.
Buzzing Segment:
Pharmaceutical stocks witnessed a strong buying support. Aurobindo Pharma (up 2.62%), Piramal Enterprises (up 1.91%) and Lupin (up 1.51%) gained.
Biocon was up 0.92%. The US drug regulator issued a Form 483 with five observations for the company's API manufacturing facility.
Dr.Reddy's Laboratories jumped 4.04% after the company recorded consolidated net loss of Rs 569.70 crore in Q3 December 2019 compared with net profit of Rs 485.20 crore in Q3 December 2018. Consolidated revenues rose 14% to 4383.80 crore in Q3 December 2019 over Q3 December 2018.
EBITDA rose 24% to Rs 1074 crore year-on-year (YoY). EBITDA margin stood at 24.5% in Q3 December 2019, higher than 22.5% in Q3 December 2018. The result was declared on Monday, 27 January 2020.
The company reported pre-tax loss of Rs 527.40 crore in Q3 December 2019 compared with pre-tax profit of Rs 580.50 crore in Q3 December 2018, primarily on account of impairment of intangible assets. Excluding impairment, profit before tax was at Rs 790 crore.
Cipla rose 1.31% after drug regulator, the United States Food and Drug Administration (USFDA) conducted a cGMP inspection at Cipla's API manufacturing facility in Bommasandra, Bangalore from 20 January 2020 to 24 January 2020. The inspection ended with 4 observations which were procedural in nature and none of which were repeat or related to data integrity.
Stocks in Spotlight:
ICICI Bank rose 1.68%. The bank reported 158.36% rise in net profit to Rs 4,146.46 crore on 17.23% rise in total income to Rs 23,638.26 crore in Q3 December 2019 over Q3 December 2018. The bank's gross non-performing assets (NPAs) stood at Rs 43,453.86 crore as on 31 December 2019 as against Rs 45,638.79 crore as on 30 September 2019 and Rs 51,591.47 crore as on 31 December 2018. Net interest margin stood at 3.77% during the quarter. Net non-performing asset (NPA) ratio decreased from 2.58% at 31 December 2018 to 1.49% at 31 December 2019.
JSW Steel declined 3.73%. The steel manufacturing major reported 87% fall in consolidated net profit to Rs 211 crore on a 12.1% fall in net sales to Rs 17,416 crore in Q3 December 2019 over Q3 December 2018. Crude steel production during the quarter stood at 4.02 million tonnes, up by 5% quarter-on-quarter (QoQ) (Q2 September 2019 production was impacted by severe monsoon, planned shutdown and weak demand). Crude steel production was impacted due to extended monsoon which impacted operations at its both Dolvi (Maharashtra) and Vijaynagar (Karnataka) plants.
Axis Bank gained 0.90%. The bank proposes to raise funds by issuing Senior Unsecured Redeemable non-convertible debentures (Series-5) of Rs 10 lakh each for cash at par aggregating upto Rs 5,000 crore.
Yes Bank (down 0.58%) is banned from trading in NSE's F&O segment for today after the security crossed 95% of market wide position limit.
Foreign Markets:
European shares opened lower. Most Asian markets were shut for the Lunar New Year holidays. Japan's Nikkei 225 dropped over 2% after the Chinese authorities warned of Coronavirus spreading further with contagion like threat internally in China.
US stocks skid on Friday on concern the spread of China's coronavirus may disrupt travel & trade and slow global economic growth.
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