Market LIVE: Domestic equity benchmarks Sensex and Nifty ended over half a per cent lower on Thursday ahead of the expiry of January series derivative contracts and Union Budget presentation. S&P BSE Sensex ended 284.84 points, 0.69 per cent lower at 40,913.82, while the broader Nifty index settled at 12,035.80, down 94 points or 0.77 per cent. 23 out of 30 stocks traded in red in today’s session. Reliance Industries was the top loser in the index, down 2.64 per cent to Rs 1440.70. Nestle Industries, IndusInd Bank, M&M, UltraTech Cement were among the top laggards on the Sensex. On the other hand, Bajaj Auto, Power Grid, ICICI Bank gained the most.
All the sectoral indices ended in red in today’s session. The Nifty FMCG index settled over one 1.5 per cent lower, weighed by Emami, Procter & Gamble Hygiene and Health care, and Dabur India. Nifty Bank index, too, ended lower dragged down by IDFC First Bank, Yes Bank, RBL Bank and Federal Bank.
In the broader market, S&P BSE MidCap index finished at 15,556.34, down 198 points or 1.26 per cent, while S&P BSE SmallCap ended 137 points or 0.92 per cent lower at 14,703.96.
On Thursday, the National Health Commission of China confirmed the death toll from the China virus has climbed to 170.
Meanwhile, India and the US have moved closer to a trade deal that will include enabling greater Indian market access for US goods especially medical devices and agriculture products. There are certain demands made earlier by Washington that remain to be agreed by New Delhi such as heavy import duty on mobile phones worth over Rs 10,000. US President Donald Trump is scheduled to visit India next month and a ‘limited deal’ signing between the two nations is on the cards.
Domestic equity benchmarks Sensex and Nifty ended lower on Thursday, reversing all the gains made yesterday ahead of the expiry of January series derivative contracts. A host of factors such as coronavirus fears, the announcement of GDP numbers, Economic Survey and Union Budget weighed the investor sentiment in today’s trade.
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"Fears of economic slowdown as the coronavirus spreads to other nations has dampened the mood of investors across the globe. A slew of results announced so far failed to provide a picture of economic revival with banks disappointing due to weak asset quality that triggered profit booking. With expectations high, the market to stay focused on the upcoming budget for further green shoots in the economy," Vinod Nair, Head of Research, Geojit Financial Services Ltd said.
"After a minor pause on Wednesday, the downtrend resumed as the Indian equity benchmark indices ended Thursday’s session on a negative note, amid muted global cues. The Nifty index ended sharply lower by 0.8% at 12,036 levels. The broader markets, BSE-Midcap and Smallcap too ended in red with losses of 1.3% and 0.9%, respectively. All the sectoral indices witnessed selling pressure, wherein FMCG, Oil & Gas and Healthcare were the top losers. We expect markets to remain volatile in the near term given the earnings season and nervousness surrounding the crucial event - Union Budget. Further, the release of Auto sales numbers for the month of January (scheduled on Feb 1st) will remain on the market radar. We believe investors can utilize any correction to invest in fundamentally sound companies with strong growth prospects," Ajit Mishra, VP - Research, Religare Broking Ltd said.
"All eyes will be on union budget, scheduled on 1st Feb, Saturday. Markets will remain open on account of the budget. Though any significant up move (3%-5%) is unlikely; any disappointment to improve the economy will pull down the market. Nifty has failed to sustain above 12400 level in the recent past and we may see profit booking at a higher level. LTCG, Dividend Distribution Tax (DDT), Cut in Personal Income tax will be the key announcements investors are looking forward to in the budget. FIIs total positioning in Index future has doubled during the month of January; they have reduced their long position by 20% while the short positions has been increased by 46%. Even in the Stock future, they have added 28% on the short side while a small addition of 5% seen on a long position. Derivative universe shrinks further with four more stocks went out of the FnO segment. Future contracts will not be available in CASTROL, DISHTV, NBCC and TATAMTRDVR. FII’s net cash flow has turned negative for January after three consecutive months with positive outflow," Rahul Mishra, AVP (Derivatives), Emkay Global Financial Services said.
"Nifty opened with a small gap up but hammered down in the first five minutes of the trade itself. Bears have controlled the day and kept bulls out of the game most time of the day. Overall Market breadth was very poor for every gainer there were a couple of losers. In the case of Nifty, it was very bad and for every gainer, there were as many as three losers. Maximum losses were seen in Nifty Pharma due to selling in PEL, Auropharma, Gail, Cipla, and Cadila. Lowest losses were seen from Nifty Auto, thanks to two-wheelers players - Eichermotors, Heromoto and Bajaj-auto. Stocks like IGL, Jublfood, Dmart, Supremeind, MGL, Dixon, Mesfin, SRF, Relaxo, Ipcalab, etc. made a new all-time high whereas, Repower, ONGC, Gayaproj, Caplipoint & Jainirrigation made a new all-time low. As the major event is coming closer, volatility is rising, India VIX gained by one percent. One should take money out of the table and wait for a Budget event to pass on to take a calculated risk," Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD said.
S&P BSE Sensex ends 307.65 points, 0.75 per cent lower at 40,891.01, while the broader Nifty index settles at 12,035.80, down 94 points or 0.77 per cent.
Dabur India reports net profit of Rs 398.87 crore in the quarter ended December 31. The company had posted a net profit of Rs 367.21 crore in the corresponding period of the previous year. Dabur India share price fell 0.54 per cent to Rs 489 apiece on BSE.
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Reliance Industries (RIL), top loser on the Sensex pack, was trading 2.55% lower at Rs 1,442 apiece on BSE in the afternoon trade.
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In the last Union Budget, the Hon’ble Finance Minister increased the rebate to INR 12,500; thereby resulting in taxpayers having income up to INR 500,000 not paying any taxes. On the other hand, the tax rates for super rich taxpayers saw a steep increase from a maximum marginal rate of 35.88% to 42.744% (total income above INR 5 Crores) because of increase in surcharge rate from 15% to 37% (for taxpayers having total income between INR 2 to 5 Crores, surcharge rate was increased to 25%, resulting in maximum marginal rate of 39%).
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After a strong third-quarter performance by Escorts where the company reported a strong 9% rise in profit, the stock price for the Farm equipment and engineering products maker has been touching new skies. Trading up by more than 7% at Rs 802, the stock has jumped from its opening price of Rs 760. The stock price has jumped 100% in the last five-months from Rs 432 in August 2019.
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IRCTC share price rose as much as 4.05 per cent to hit a record high of Rs 1136 apiece on BSE on Thursday. It has been touching new record highs for at least three days in a row. IRCTC share price has surpassed its previous high of Rs 1,130.35 touched on Wednesday on BSE. The brokerage and research firm Prabhudas Lilladher has given a ‘buy’ rating to it with an upside of over 15 per cent.
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Gold and silver prices inched up on Thursday as US Federal Reserve said the “uncertainties about the outlook remain, including those posed by the new coronavirus”. On MCX, the gold February futures were trading Rs 222 or 0.55 per cent higher at Rs 40,572 per 10 grams while silver March futures were ruling at Rs 45,885 per kg, up Rs 334 or 0.73 per cent.
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The market reaction towards InterGlobe Aviation’s boardroom tussle remained sharp as the share price of the company that controls India’s largest budget carrier IndiGo fell by as much as 2% in early trading. Opening at Rs 1,451, down from its last closing price of Rs 1,462 InterGlobe Aviation shed gains made on the back of strong Q3 results, after co-founder Rakesh Gangwal’s bid to amend the Articles of Association (AoA) was rejected by shareholders led by Rahul Bhatia.
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The Indian rupee slipped 14 paise in the opening deals on Thursday as Federal Open Market Committee (FOMC) held the interest rates steady at its first policy meeting. At 11 AM, the rupee was trading at 71.44 a dollar, down 18 paise or 0.26 per cent against the previous closing of 71.25 a dollar. On a year-to-date (YTD) basis, the Indian rupee has strengthened 0.09 per cent.
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Domestic equity benchmark indices Sensex and Nifty opened lower on Thursday tracking weakness in Asian markets as the death toll from coronavirus rose. Markets are likely to remain volatile ahead of the expiry of the January series of Futures & Options (F&O) contracts due today. The investors are also awaiting the presentation of the Economic Survey and Union Budget.
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At a time when banks are still dealing with elevated slippages, an older tranche of bad loans sitting in their investment books for the last eight years has returned to haunt them. Banks are preparing to set aside nearly Rs 4,000 crore as provisions as they expect a majority of the security receipts (SRs) from bad loan sales in 2011 and 2012 to go unredeemed, according to people aware of the development.
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China’s coronavirus crisis is an opportunity for India to ensure epidemic preparedness. Apart from the lack of healthcare capacity to deal with the crisis—this, after its 2002 SARS outbreak killed over 700 people—China’s response to the outbreak might end up being a factor contributing to the rise in death toll.
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Wish Town was once a sought-after destination for India’s aspiring middle classes seeking a slice of the “good days” promised by an ambitious Prime Minister Narendra Modi when he swept to power more than five years ago.
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The government has done well to remove most of the mindless restrictions put in place the last time it sought to privatise Air India (AI)—these ensured no one bid for the haemorrhaging airline. What it says about the earlier decision-making process is another story. A complete exit from AI instead of retaining 24% like the last time around will reassure potential bidders that there will be no government interference.
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