After two consecutive days of losses, the domestic stock market advanced on Tuesday, led by positive global cues. The Nifty, however, failed to close above its 50-day simple moving average placed at 12,120.39. Global shares edged higher as some Chinese factories slowly resumed operations amid the national fight against the novel coronavirus outbreak.
The barometer BSE S&P Sensex rose 236.52 points or 0.58% to 41,216.14. The Nifty 50 index added 76.40 points or 0.63% to 12,107.90.
In the broader market, the BSE Mid-Cap index rose 0.35% while the BSE Small-Cap index fell 0.18%.
The market breadth was negative. On the BSE, 1122 shares rose and 1383 shares fell. A total of 194 shares were unchanged.
Arvind Kejriwal-led Aam Aadmi Party (AAP) is on course to register thumping victory in Delhi polls. As counting of votes for 70 seats is underway, the AAP was leading in 42 and won 21 seats. The BJP is leading in 6 and won 1 seat. This leaves the Congress virtually decimated in a city it had ruled for three consecutive terms under Sheila Dikshit.
This would be a hat-trick win for AAP party, which managed to win 67 seats in the 2015 polls. Meanwhile, this will be the third straight electoral setback for the BJP, which earlier failed to form state governments in Jharkhand and Maharashtra last year.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.465% at 16:45 IST compared with 6.440% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.287, compared with its close of 71.28 during the previous trading session.
In the commodities market, Brent crude for April 2020 settlement rose 88 cents to $54.15 a barrel. The contract fell $1.20 or 2.20% to settle at $53.27 a barrel in the previous trading session.
Shares in Europe and Asia advanced on Tuesday as the number of new coronavirus cases slowed in China and the country's factories slowly returned to work, easing some concerns of a long-drawn impact to the global economy.
With the death toll from the virus now crossing 1000, markets remained worried that the extent of economic disruption could be greater than estimated.
In US, the Nasdaq Composite and S&P 500 clinched closing records on Monday as investors took heart in mostly solid US fourth-quarter corporate earnings and looked beyond concerns about the coronavirus outbreak's potential disruption to global supply chains.
Expectations for the Federal Reserve to prop up the economy with easy financial conditions if the coronavirus spills over into the US, also helped to support stocks.
Buzzing Indian Segments:
The Nifty Metal index rose 0.87% to 2,651.75 as a slowdown in new coronavirus cases boosted prices of base metals. China is the world's biggest consumer of industrial metals.
JSW Steel (up 3.92%), JSPL (up 1.6%), Hindalco Industries (up 1.44%), Hindustan Copper (up 0.36%), Vedanta (up 0.36%), Hindustan Zinc (up 0.18%) and Tata Steel (up 0.14%) advanced. SAIL (down 0.65%) and NALCO (down 5.43%) declined.
The Nifty FMCG index fell 0.37% to 30,414.55. It was the sole loser among the NSE's sectoral indices.
Godrej Consumer Products (down 2.43%), Procter & Gamble Hygiene and Healthcare (down 2.29%), Colgate Palmolive (India) (down 1.5%), Marico (down 1.2%), GlaxoSmithKline Consumer Healthcare (down 0.75%), Britannia Industries (down 0.73%), Nestle India (down 0.61%), Jyothy Laboratories (down 0.56%), Dabur India (down 0.53%), Tata Global Beverages (down 0.5%) and Hindustan Unilever (down 0.34%) declined.
Bajaj Consumer Care slumped 7.27% after standalone net profit fell 16.7% to Rs 50.08 crore on a 7.4% decline in net sales to Rs 205.47crore in Q3 December 2019 over Q3 December 2018. The company reported a 23.07% decline in standalone EBITDA to Rs 55.69 crore in Q3 2019 as against Rs 72.39 crore posted in Q3 2018. EBITDA margin declined to 27.1% in Q3 December 2019 from 32.61% reported in Q3 December 2018.
Stocks in Spotlight:
Coal India rose 0.25%. The company will announce Q3 earnings today.
Infosys rose 0.27%. The IT major on Monday announced a definitive agreement to acquire Simplus, one of the fastest growing Salesforce Platinum Partners in the USA and Australia. The acquisition is expected to close during the fourth quarter of fiscal 2020, subject to customary closing conditions, Infosys said in a statement after market hours yesterday, 10 February 2020. According to a regulatory filing, the cost of acquisition is $200 million including contingent consideration to be paid for the acquisition of shares subject to closing adjustments. In addition, there are employee incentives and retention payments amounting up to $50 million on meeting certain performance conditions over three years, it added.
Cipla rose 1.60%. The drug major said its wholly-owned subsidiary, Cipla Medpro South Africa, has concluded an exclusive agreement securing originator and authorized generic brands of an atypical anti-psychotic drug, Quetiapine. The agreement involves AstraZeneca Pharmaceuticals, the originator of the medicine, and Luye Pharma Hong Kong, which acquired the assets and rights to the medicine in select territories. The transaction allows Cipla Medpro to market and distribute the Medicine in South Africa and neighboring countries, Cipla said in a statement after market hours on Monday (10 February).
Mahindra & Mahindra (M&M) fell 0.69% after the Competition Commission of India (CCI) approved the formation of joint venture (JV) between M&M and Ford Motor.
Oil India advanced 0.19%. The company's consolidated net profit declined 50.1% to Rs 709.39 crore on a 16.1% decline in net sales to Rs 2957.19 crore in Q3 December 2019 over Q3 December 2018. On a standalone basis, Oil India's net profit tumbled 67.1% to Rs 406.39 crore on 16% decline in net sales to Rs 2951.99 crore in Q3 December 2019 over Q3 December 2018. The earnings came in after market hours yesterday, 10 February 2020. Profit before tax (PBT) for Q3 December 2019 stood at Rs 685.31 crore, down 58% from Rs 1631.73 crore in Q3 December 2018. Tax expenses increased 23.2% to Rs 283.61 in Q3 December 2019 over Q3 December 2018. EBITDA slumped 42% to Rs 1231.34 crore in Q3 December 2019 over Q3 December 2018. EBITDA margin declined to 35.37% in Q3 December 2019 from 52.65% reported in Q3 December 2018. Due to fall in international crude oil prices, average crude oil price realisation is lower by 5.1% to $63.27 per barrel in Q3 December 2019 over Q3 December 2018.
Shilpa Medicare hit an upper-circuit limit of 10% at Rs 437.85 after consolidated net profit surged 248.7% to Rs 55.06 crore in Q3 December 2019 (Q3 FY20) as against Rs 15.79 crore reported in Q3 December 2018 (Q3 FY19). Net sales soared 36.6% year-on-year (Y-o-Y) to Rs 236.85 crore in Q3 FY20. The Q3 figures were announced after trading hours yesterday, 10 February 2020. Profit before tax jumped 481.3% to Rs 65.45 crore Y-o-Y. Current tax expenses soared 152.8% to Rs 12.01 crore during the period under review.
Avenue Supermarts (DMart) informed about the closure of qualified institutional placement (QIP) of equity shares on Monday, 10 February 2020. The DMart board approved the QIP issue price of Rs 2,049 per share. The QIP issue commenced on 5 February 2020. The company offered 2 crore shares at the floor price of Rs 1999.04 each.
Shares of DMart declined 3.60% at Rs 2,394.65 amid profit booking. The scrip surged 8.63% in yesterday's session to end at Rs 2484.15. It hit a record high of Rs 2,537 yesterday.
General Insurance Corporation of India (GIC) slumped 10.83% after it reported a consolidated net loss of Rs 1035.54 crore in Q3 December 2019 as compared to a net profit of Rs 377.34 crore in Q3 December 2018. Total income of the general insurer rose 20.3% to Rs 10091.16 crore in Q3 FY20 over Q3 FY19. The company reported a pre-tax loss of Rs 950.50 crore in the third quarter of FY20 as compared to a pre-tax profit of Rs 377.34 crore reported in the same period last year. GICRE said that higher agriculture claims and flood claims in various parts of India resulted in underwriting loss to the corporation. Shares of GIC tumbled 9.28% to Rs 240.
Chalet Hotels jumped 6.19%. The company reported 133.87% rise in consolidated net profit to Rs 33.28 crore on 11.64% rise in total income to Rs 284.73 crore in Q3 December 2019 over Q3 December 2018. In line with its strategy to optimally utilize available land, the company has embarked on 2 commercial projects with an area of around 1.1 mn sqft in Mumbai and Bengaluru adjoining its existing hotels.
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