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Nifty slips below 12,200; Housing finance stocks under pressure

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Key barometers further pared gains in early afternoon trade with the Nifty slipping below the crucial 12,200 mark. At 12:26 IST, the S&P BSE Sensex, gained 319.07 points or 0.77% at 41,580.49. The Nifty 50 index was up 81.15 points or 0.67% at 12,189.05.

The broader market witnessed selling pressure. The S&P BSE Mid-Cap index was down 0.19% while the S&P BSE Small-Cap index was down 0.24%.

The market breadth was tilted towards the sellers. On the BSE, 907 shares rose and 1308 shares fell. A total of 150 shares were unchanged. In Nifty 50 index, 33 stocks advanced while 17 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 2.5% to 13.5325. The Nifty February 2020 futures were trading at 12,215, a premium of 20.15 points compared with the spot at 12,194.85.

On the options front, the Nifty option chain for 27 February 2020 expiry showed maximum call open interest (OI) of 28.17 lakh contracts at the 12,500 strike price. Maximum Call writing was witnessed at 12,400 strike price, which added 1.78 lakh contracts. Call unwinding was observed at 12,000 strike price which shed 87,300 contracts.

Maximum put OI of 38.90 lakh contracts was seen at 12,000 strike price. Massive put writing was observed at 12,200 strike which added 5.2 lakh contracts. Put unwinding was seen at 11,500 strike price which shed 1.02 lakh contracts.

The option chain indicates that the Nifty will stay between 12,000 and 12,500 level till February expiry.

Buzzing Index:

Housing Finance stocks tumbled after media house reported that real estate norms announced in Date of Commencement of Commercial Operations (DCCO) extension policy are applicable to only banks. These policies do not include NBFCs or Housing Finance companies.

Indiabulls Housing Finance (down 5.09%), Dewan Housing Finance Corporation (down 4.73%), GIC Housing Finance (down 4.25%), LIC Housing Finance (down 3.3%) and PNB Housing Finance (down 1.76%) were top losers in housing finance companies.

Last week, RBI permitted extension of DCCO of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by another one year without downgrading the asset classification, in line with treatment accorded to other project loans for non-infrastructure sector. This would complement the initiatives taken by the Government of India in the real estate sector.

Stocks in Spotlight:

Aster DM Healthcare jumped 5.86% to Rs 177 after consolidated net profit surged 57% to Rs 157.49 crore in Q3 December 2019 (Q3 FY20) as against Rs 100.34 crore reported in Q3 December 2018 (Q3 FY19). Net sales rose 8% year-on-year (Y-o-Y) to Rs 2,321.66 crore in Q3 FY20. The Q3 numbers were disclosed after market hours yesterday, 11 February 2020.

Shares of Hexaware Technologies fell 1.87% to Rs 368.25. The IT firm's consolidated net profit fell 8.7% to Rs 167.8 crore on 3.2% rise in revenue to Rs 1528.8 crore in Q4 December 2019 over Q3 September 2019. EBITDA (post RSU, or Restricted Stock Units) improved 0.8% to Rs 239.7 crore in Q4 December 2019 over Q3 September 2019. The company follows January-December as its fiscal year. The company's consolidated net profit rose 9.9% to Rs 641.3 crore on a 20.1% jump in revenues to Rs 5582.5 crore in the year ended December 2019 (FY19) over the year ended December 2018 (FY18). EBITDA (Post RSU) improved by 19.7% to Rs 877.9 crore in FY19 over FY18.

Cochin Shipyard rose 1.34% to Rs 354.40 after consolidated net profit surged 32.2% to Rs 169.81 crore in Q3 December 2019 (Q3 FY20) as against Rs 128.41 crore reported in Q3 December 2018 (Q3 FY19). On a consolidated basis, net sales jumped 25% year-on-year (Y-o-Y) to Rs 896.09 crore in Q3 FY20. The Q3 numbers were disclosed after market hours yesterday, 11 February 2020. Consolidated profit before tax soared 16.7% to Rs 228.23 crore Y-o-Y. Consolidated current tax expenses also surged 23.9% to Rs 59.58 crore during the period under review.

Global Markets:

Most Asian markets were trading higher on Wednesday amid hopes the worst of the coronavirus in China may have passed, although prevailing uncertainty about the outbreak has kept investors wary.

In US, the S&P 500 and Nasdaq notched record closes on Tuesday, but the Dow finished virtually unchanged. Investors attributed optimism surrounding equities to signs of a slowdown of new cases of COVID-19 in China, while the top Federal Reserve chief reportedly saying the central bank is monitoring the economic impact of the viral outbreak.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 12 2020. 12:29 IST
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