After scaling fresh record highs during the early morning deals on Monday, equity markets slumped nearly a per cent as investors booked profit and sold equities across the board. The benchmark S&P BSE Sensexdeclined 760 points from record high level of 42,273.87 to hit an intra-day low of 41,503.37. On the NSE, the Nifty50 slipped below the crucial 12,250 mark in the intra-day trade. The 50-share index hit a record high of 12,430.50-mark in the opening deals, before slipping to intra-day low of 12,220.70.
At close, the S&P BSE Sensex was down 416.46 points, or 0.99 per cent, to end at 41,528.91 level. Heavyweights like Reliance Industries, HDFC Bank, TCS, Axis Bank and SBI were the top contributors towards today's fall. At the index level, Power Grid (up 3.7 per cent), Bharti Airtel, and Asian Paints were the top gainers on the Sensex, while RIL (down 3.2 per cent), NTPC, and TCS were the top laggards.
The Nifty50, on the other hand, ended at 12,224.55-mark, down 127.80 points or 1.03 per cent. All the key sectoral indices closed the day in the negative territory, barring Nifty Realty and FMCG indices. Nifty Bank settled 494 points, or 1.6 per cent, lower at 31,096.35-mark, followed by Nifty Private Bank index (down 1.67 per cent).
The broader markets, too, gave up their 9-days gaining streak on Monday and settled the day in the negative territory. The S&P BSE mid-cap index declined 0.57 per cent to close at 15,618.86, while the S&P BSE small-cap index settled 0.43 per cent lower at 14,645.05.
GLOBAL MARKETS
World stocks held near record highs on Monday as generally better data and earnings bolstered sentiment, while oil prices hit their highest in over a week after two large crude production bases in Libya began shutting down following a blockade.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was flat having risen to its highest since June 2018. Japan’s Nikkei added 0.2 per cent to be near its highest in 15 months.
European equities opened a touch lower, with the pan-European STOXX 600 index slipping 0.3 per cent, after gaining nearly 1per cent on Friday. US stock futures, meanwhile, were down marginally.
In the commodities market, Brent Crude Futures were at $65.11 per barrel-mark, up 0.4 per cent at 3:30 pm. WTI Crude, on the other hand, was at $59.07 per barrel, up 0.84 per cent.
(With inputs from Reuters)
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04:15 PM
Market Closing Comment :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sideways range movement in the last four sessions, the Nifty witnessed a sharp profit booking today, from the new all time high of 12,430 levels and closed the day on a sharp negative note.
A large negative candle was formed today after opening gap up, this pattern indicates a formation of bearish engulfing of the last five trading sessions high low range. This is negative pattern and one may expect today's swing high to be a crucial top reversal pattern. Follow-through weakness could confirm the reversal.
The short term trend of Nifty seems to have turned down, more weakness could be in store in the short term. The next lower levels to be watched at 12,100, which could be reached in the next few sessions.
03:44 PM
Nifty snapshot at close
03:43 PM
Sensex heatmap at close
03:41 PM
Closing Bell
>> At close, the S&P BSE Sensex was down 416.46 points, or 0.99 per cent, to end at 41,528.91 level. Heavyweights like Reliance Industries, HDFC Bank, TCS, Axis Bank and SBI were the top contributors towards today's fall.
>> The Nifty50, on the other hand, ended at 12,224.55-mark, down 127.80 points or 1.03 per cent.
03:24 PM
Global carmakers set to firm up India strategy amid auto sales slump
The worst slump in car sales in two decades has not discouraged global carmakers from entering the Indian market. Two years after SAIC-owned MG Motors and Hyundai’s affiliate Kia Motors established a presence here and tasted reasonable success, a clutch of automakers from China such as Great Wall Motors, FAW Haima Automobile, and Changan Automobile are set to firm up their India strategy. READ MORE
03:11 PM
NEWS ALERT | Govt likely to extend timeline of LTCG from 12 months to 24 months: sources to CNBC TV18
>> Govt likely to change applicability of Dividend Distribution Tax
03:06 PM
NEWS ALERT | Govt considering rationalisation of key equity taxes under Budget 2020: sources to CNBC TV18
>> Govt might do away with capital gains tax on selling of property
03:04 PM
Market check
03:02 PM
JUST IN | Zydus and China Medical System Holdings enter into a License Agreement for Desidustat in Greater China
02:57 PM
Adani Enterprises denies wrongdoing in coal supply contracts case
In its FIR filed last week after a detailed preliminary enquiry in the matter, the CBI booked Adani Enterprises Ltd, the then NCCF chairman Virender Singh, the then managing director G P Gupta and senior advisor SC Singhal under IPC sections related to alleged criminal conspiracy, cheating under Indian Penal Code and Provisions of Prevention of Corruption Act, officials said on Thursday. READ MORE
02:48 PM
Domestic air passenger traffic grows to 144 mn at 3.74% in 2019: DGCA
Commenting on the 2019 data, a senior official of the Directorate General of Civil Aviation said, "A bit disappointing. In 2019, we faced headwinds on account of Jet Airways but 2020 is going to be different and the double digit growth should be back sooner rather than later." READ MORE
02:39 PM
Fine Organic soars 6%, hits new high after ICRA upgrades credit rating
“The upgrade in long-term rating of Fine Organic Industries favourably factors in the healthy improvement in scale of operations and cash accruals in FY2019 and H1 FY2020 which are expected to increase further driven by the ramp up in the capacity utilisation of the newly commissioned capacity at Ambernath (Mumbai) and the positive demand outlook for the company’s products in the domestic as well as export markets,” ICRA said in a rating rationale. READ MORE
02:23 PM
Stocks that hit 52-week high on BSE today
COMPANY PRICE(RS) 52 WK HIGH CHG(RS) CHG(%)
ADANI ENTERP. 227.25 232.00 -1.10 -0.48
AJANTA PHARMA 1192.00 1197.95 58.25 5.14
APOLLO HOSPITALS 1640.25 1658.50 21.10 1.30
ASIAN PAINTS 1855.95 1861.95 24.75 1.35
ATUL 4365.95 4444.00 18.90 0.43
» More on 52 Week High
02:16 PM
NEWS ALERT | Federal Bank slips 1.7% post Q3 result
>> Net profit up 32.1% YoY at Rs 440.6 crore;
>> NII comes up 7.2% YoY at Rs 1,154.9 crore
02:07 PM
Earnings Alert | Bank of Maharashtra Q3 results
>> Net profit at Rs 135.3 crore
>> NII at Rs 1,186 crore, up 36% YoY
>> Gross NPA at Rs 15,745 cr, up 2.2% QoQ
>> Net NPA at Rs 4,506.8, up 2.3% QoQ
02:04 PM
MARKET CHECK | Asian Paints hits 52-week high
02:01 PM
BROKERAGE RADAR | Centrum Broking on Karnataka Bank
RECO: BUY
TARGET PRICE: Rs 117
Karnataka bank (KBL) Q3FY20 results were in-line on the loan growth and NII front though higher trading gains at Rs1.8 bn provided some cushion to the PPoP (at Rs 5.02 bn was a beat) and asset quality blip. Slippages spiked to Rs 6.37bn driven by four large accounts marring asset quality. Due to the Bank’s focus on retail / SME its share has risen to 47% which provided some comfort to NIM despite higher slippages. Over FY19-22E we see NIM to expand by 20bps to 3.0% while provision costs to decline by 29bps over FY20-22E to 104bps. Hence RoA/RoE might scale up to 0.8%/11.3% by FY22E (vs 0.6% / 8.0% in FY20E). We raise our TP to Rs117 though maintain our multiple at 0.7x as we roll forward to FY22ABV.
01:59 PM
Three telcos to seek urgent SC hearing as deadline to pay dues nears
Bharti Airtel, Vodafone Idea Ltd and the Tata group will request the court to hear their petition urgently by Tuesday as the deadline for them to pay Rs 147,000 crore as Adjusted Gross Revenue (AGR) ends on January 24. READ MORE
Telcos owe govt Rs 54,828 cr in licence, spectrum fee: Ravi Shankar Prasad
01:43 PM
Polycab India hits new high ahead of Q3 results, rallies 58% in 3 months
In the last three months, the stock of the fast-moving electric goods (FMEG) company has rallied 58 per cent after its net profit more-than-doubled to Rs 194 crore in the September quarter (Q2FY20) on the back of strong revenue growth. It had logged a profit of Rs 90 crore in the year-ago quarter. In comparison, the S&P BSE Sensex was up 6.5 per cent during the same period. READ MORE
01:27 PM
Market check
01:12 PM
Govt likely to abolish dividend distribution tax in upcoming Budget
The government is likely to abolish dividend distribution tax (DDT) in the upcoming Budget and may instead tax the shareholders receiving dividends, in a bid to help improve investor sentiment by addressing the multiplicity of taxes and bring down the effective tax rates for companies. The move will need changes in Section 115 (O) of the Income-tax Act. READ MORE
01:01 PM
Market check
12:51 PM
India's GDP growth premium over EMs to hit 7-year low of 1.1%: IMF
The relative attractiveness of India’s growth story is fast fading as the pace of economic slowdown in India exceeds the rest of the world (RoW). According to the latest data from the International Monetary Fund, India’s growth premium over the emerging economies (EMs) will hit a seven-year low in 2019-20 (FY20) and an 18-year low against the developed economy, including the US. READ MORE
12:40 PM
Reliance Industries declines 2% as investors book profit post Q3 results
The stock has fallen 4 per cent from its early morning high of Rs 1,610 on profit-booking. During the past four months, RIL has outperformed the market by surging 32 per cent, as compared to a 15 per cent rise in the S&P BSE Sensex till Friday. It touched an all-time high of Rs 1,618 on December 20, 2019. READ MORE
12:32 PM
BROKERAGE RADAR | ICICI Securities on TCS
Weaker-than-expected execution on the revenue front in 9MFY20 and subdued outlook for banking financial services and retail (its two largest verticals) in the near term leads us to maintain our stance on the company. Further, continued investments and pricing pressure could play spoilsport for margins. This, coupled with fully priced valuations prompt us to maintain our HOLD recommendation on the stock. We value the stock at 20x FY22E EPS with a revised target price of Rs 2,120.
12:20 PM
BROKERAGE RADAR | HDFC Securities on Cyient
Reco: NEUTRAL
Target Price: Rs 490
We maintain NEUTRAL on Cyient post weak 3Q. Services revenue was below estimate while margin performance was inline. Some margin improvement is expected in FY21E but growth in core verticals remains challenged. We have increased EPS est. by 1.0/0.8% for FY21/22E and our TP of Rs 490 is based on 11x Dec-21E EPS.
12:08 PM
NEWS ALERT | Cholamandalam Invt & Fin Co to consider fund raising by way of preferential issue: BSE filing
>> Board meeting for the same to be held on Jan 23
12:00 PM
Prestige Estates up 10% as arm acquires 50% stake in Lokhandwala DB Realty
Shares of Prestige Estates Projects moved higher by 10 per cent to Rs 413 on the BSE on Monday, in an otherwise weak market, after the company's wholly owned subsidiary acquired 50 per cent stake in Lokhandwala DB Realty LLP. The stock of the Bengaluru-based real estate developer was trading at its all-time high level. READ MORE
11:49 AM
Budget 2020 | RITES, Titagarh: How to trade rail-related stocks
Thus far in the financial year 2019-20 (FY20), shares of rail-related stocks have given mixed performance at the bourses. RITES, for instance, has outperformed the market by surging around 54 per cent as compared to over 6 per cent rise in the benchmark Nifty50 index. READ MORE
11:38 AM
NEWS ALERT | I-T Dept raids 8 properties of Bharat Hotel MD Jyotsna Suri: sources to CNBC TV18
>> I-T Dept raids Bharat Hotel (Lalit Suri Group) MD, Jyotsna Suri & Her Associates
>> Lalit Suri Group owns hotels like The Lalit in New Delhi
>> Dept suspects case of big tax evasion
>> Along with Suri, her associate Jayant Nanda is also being raided
Alert: I-T Dept stands for Income Tax Dept
At close, the S&P BSE Sensex was down 416.46 points, or 0.99 per cent, to end at 41,528.91 level. Heavyweights like Reliance Industries, HDFC Bank, TCS, Axis Bank and SBI were the top contributors towards today's fall. At the index level, Power Grid (up 3.7 per cent), Bharti Airtel, and Asian Paints were the top gainers on the Sensex, while RIL (down 3.2 per cent), NTPC, and TCS were the top laggards.
The Nifty50, on the other hand, ended at 12,224.55-mark, down 127.80 points or 1.03 per cent. All the key sectoral indices closed the day in the negative territory, barring Nifty Realty and FMCG indices. Nifty Bank settled 494 points, or 1.6 per cent, lower at 31,096.35-mark, followed by Nifty Private Bank index (down 1.67 per cent).
The broader markets, too, gave up their 9-days gaining streak on Monday and settled the day in the negative territory. The S&P BSE mid-cap index declined 0.57 per cent to close at 15,618.86, while the S&P BSE small-cap index settled 0.43 per cent lower at 14,645.05.
GLOBAL MARKETS
World stocks held near record highs on Monday as generally better data and earnings bolstered sentiment, while oil prices hit their highest in over a week after two large crude production bases in Libya began shutting down following a blockade.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was flat having risen to its highest since June 2018. Japan’s Nikkei added 0.2 per cent to be near its highest in 15 months.
European equities opened a touch lower, with the pan-European STOXX 600 index slipping 0.3 per cent, after gaining nearly 1per cent on Friday. US stock futures, meanwhile, were down marginally.
In the commodities market, Brent Crude Futures were at $65.11 per barrel-mark, up 0.4 per cent at 3:30 pm. WTI Crude, on the other hand, was at $59.07 per barrel, up 0.84 per cent.
(With inputs from Reuters)
CATCH ALL THE LIVE UPDATES
Auto Refresh
04:15 PM
Market Closing Comment :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sideways range movement in the last four sessions, the Nifty witnessed a sharp profit booking today, from the new all time high of 12,430 levels and closed the day on a sharp negative note.
A large negative candle was formed today after opening gap up, this pattern indicates a formation of bearish engulfing of the last five trading sessions high low range. This is negative pattern and one may expect today's swing high to be a crucial top reversal pattern. Follow-through weakness could confirm the reversal.
The short term trend of Nifty seems to have turned down, more weakness could be in store in the short term. The next lower levels to be watched at 12,100, which could be reached in the next few sessions.
03:44 PM
Nifty snapshot at close
03:43 PM
Sensex heatmap at close
03:41 PM
Closing Bell
>> At close, the S&P BSE Sensex was down 416.46 points, or 0.99 per cent, to end at 41,528.91 level. Heavyweights like Reliance Industries, HDFC Bank, TCS, Axis Bank and SBI were the top contributors towards today's fall.
>> The Nifty50, on the other hand, ended at 12,224.55-mark, down 127.80 points or 1.03 per cent.
03:24 PM
Global carmakers set to firm up India strategy amid auto sales slump
The worst slump in car sales in two decades has not discouraged global carmakers from entering the Indian market. Two years after SAIC-owned MG Motors and Hyundai’s affiliate Kia Motors established a presence here and tasted reasonable success, a clutch of automakers from China such as Great Wall Motors, FAW Haima Automobile, and Changan Automobile are set to firm up their India strategy. READ MORE
03:11 PM
NEWS ALERT | Govt likely to extend timeline of LTCG from 12 months to 24 months: sources to CNBC TV18
>> Govt likely to change applicability of Dividend Distribution Tax
03:06 PM
NEWS ALERT | Govt considering rationalisation of key equity taxes under Budget 2020: sources to CNBC TV18
>> Govt might do away with capital gains tax on selling of property
03:04 PM
Market check
03:02 PM
JUST IN | Zydus and China Medical System Holdings enter into a License Agreement for Desidustat in Greater China
02:57 PM
Adani Enterprises denies wrongdoing in coal supply contracts case
In its FIR filed last week after a detailed preliminary enquiry in the matter, the CBI booked Adani Enterprises Ltd, the then NCCF chairman Virender Singh, the then managing director G P Gupta and senior advisor SC Singhal under IPC sections related to alleged criminal conspiracy, cheating under Indian Penal Code and Provisions of Prevention of Corruption Act, officials said on Thursday. READ MORE
02:48 PM
Domestic air passenger traffic grows to 144 mn at 3.74% in 2019: DGCA
Commenting on the 2019 data, a senior official of the Directorate General of Civil Aviation said, "A bit disappointing. In 2019, we faced headwinds on account of Jet Airways but 2020 is going to be different and the double digit growth should be back sooner rather than later." READ MORE
02:39 PM
Fine Organic soars 6%, hits new high after ICRA upgrades credit rating
“The upgrade in long-term rating of Fine Organic Industries favourably factors in the healthy improvement in scale of operations and cash accruals in FY2019 and H1 FY2020 which are expected to increase further driven by the ramp up in the capacity utilisation of the newly commissioned capacity at Ambernath (Mumbai) and the positive demand outlook for the company’s products in the domestic as well as export markets,” ICRA said in a rating rationale. READ MORE
02:23 PM
Stocks that hit 52-week high on BSE today
COMPANY PRICE(RS) 52 WK HIGH CHG(RS) CHG(%)
ADANI ENTERP. 227.25 232.00 -1.10 -0.48
AJANTA PHARMA 1192.00 1197.95 58.25 5.14
APOLLO HOSPITALS 1640.25 1658.50 21.10 1.30
ASIAN PAINTS 1855.95 1861.95 24.75 1.35
ATUL 4365.95 4444.00 18.90 0.43
» More on 52 Week High
02:16 PM
NEWS ALERT | Federal Bank slips 1.7% post Q3 result
>> Net profit up 32.1% YoY at Rs 440.6 crore;
>> NII comes up 7.2% YoY at Rs 1,154.9 crore
02:07 PM
Earnings Alert | Bank of Maharashtra Q3 results
>> Net profit at Rs 135.3 crore
>> NII at Rs 1,186 crore, up 36% YoY
>> Gross NPA at Rs 15,745 cr, up 2.2% QoQ
>> Net NPA at Rs 4,506.8, up 2.3% QoQ
02:04 PM
MARKET CHECK | Asian Paints hits 52-week high
02:01 PM
BROKERAGE RADAR | Centrum Broking on Karnataka Bank
RECO: BUY
TARGET PRICE: Rs 117
Karnataka bank (KBL) Q3FY20 results were in-line on the loan growth and NII front though higher trading gains at Rs1.8 bn provided some cushion to the PPoP (at Rs 5.02 bn was a beat) and asset quality blip. Slippages spiked to Rs 6.37bn driven by four large accounts marring asset quality. Due to the Bank’s focus on retail / SME its share has risen to 47% which provided some comfort to NIM despite higher slippages. Over FY19-22E we see NIM to expand by 20bps to 3.0% while provision costs to decline by 29bps over FY20-22E to 104bps. Hence RoA/RoE might scale up to 0.8%/11.3% by FY22E (vs 0.6% / 8.0% in FY20E). We raise our TP to Rs117 though maintain our multiple at 0.7x as we roll forward to FY22ABV.
01:59 PM
Three telcos to seek urgent SC hearing as deadline to pay dues nears
Bharti Airtel, Vodafone Idea Ltd and the Tata group will request the court to hear their petition urgently by Tuesday as the deadline for them to pay Rs 147,000 crore as Adjusted Gross Revenue (AGR) ends on January 24. READ MORE
Telcos owe govt Rs 54,828 cr in licence, spectrum fee: Ravi Shankar Prasad
01:43 PM
Polycab India hits new high ahead of Q3 results, rallies 58% in 3 months
In the last three months, the stock of the fast-moving electric goods (FMEG) company has rallied 58 per cent after its net profit more-than-doubled to Rs 194 crore in the September quarter (Q2FY20) on the back of strong revenue growth. It had logged a profit of Rs 90 crore in the year-ago quarter. In comparison, the S&P BSE Sensex was up 6.5 per cent during the same period. READ MORE
01:27 PM
Market check
01:12 PM
Govt likely to abolish dividend distribution tax in upcoming Budget
The government is likely to abolish dividend distribution tax (DDT) in the upcoming Budget and may instead tax the shareholders receiving dividends, in a bid to help improve investor sentiment by addressing the multiplicity of taxes and bring down the effective tax rates for companies. The move will need changes in Section 115 (O) of the Income-tax Act. READ MORE
01:01 PM
Market check
12:51 PM
India's GDP growth premium over EMs to hit 7-year low of 1.1%: IMF
The relative attractiveness of India’s growth story is fast fading as the pace of economic slowdown in India exceeds the rest of the world (RoW). According to the latest data from the International Monetary Fund, India’s growth premium over the emerging economies (EMs) will hit a seven-year low in 2019-20 (FY20) and an 18-year low against the developed economy, including the US. READ MORE
12:40 PM
Reliance Industries declines 2% as investors book profit post Q3 results
The stock has fallen 4 per cent from its early morning high of Rs 1,610 on profit-booking. During the past four months, RIL has outperformed the market by surging 32 per cent, as compared to a 15 per cent rise in the S&P BSE Sensex till Friday. It touched an all-time high of Rs 1,618 on December 20, 2019. READ MORE
12:32 PM
BROKERAGE RADAR | ICICI Securities on TCS
Weaker-than-expected execution on the revenue front in 9MFY20 and subdued outlook for banking financial services and retail (its two largest verticals) in the near term leads us to maintain our stance on the company. Further, continued investments and pricing pressure could play spoilsport for margins. This, coupled with fully priced valuations prompt us to maintain our HOLD recommendation on the stock. We value the stock at 20x FY22E EPS with a revised target price of Rs 2,120.
12:20 PM
BROKERAGE RADAR | HDFC Securities on Cyient
Reco: NEUTRAL
Target Price: Rs 490
We maintain NEUTRAL on Cyient post weak 3Q. Services revenue was below estimate while margin performance was inline. Some margin improvement is expected in FY21E but growth in core verticals remains challenged. We have increased EPS est. by 1.0/0.8% for FY21/22E and our TP of Rs 490 is based on 11x Dec-21E EPS.
12:08 PM
NEWS ALERT | Cholamandalam Invt & Fin Co to consider fund raising by way of preferential issue: BSE filing
>> Board meeting for the same to be held on Jan 23
12:00 PM
Prestige Estates up 10% as arm acquires 50% stake in Lokhandwala DB Realty
Shares of Prestige Estates Projects moved higher by 10 per cent to Rs 413 on the BSE on Monday, in an otherwise weak market, after the company's wholly owned subsidiary acquired 50 per cent stake in Lokhandwala DB Realty LLP. The stock of the Bengaluru-based real estate developer was trading at its all-time high level. READ MORE
11:49 AM
Budget 2020 | RITES, Titagarh: How to trade rail-related stocks
Thus far in the financial year 2019-20 (FY20), shares of rail-related stocks have given mixed performance at the bourses. RITES, for instance, has outperformed the market by surging around 54 per cent as compared to over 6 per cent rise in the benchmark Nifty50 index. READ MORE
11:38 AM
NEWS ALERT | I-T Dept raids 8 properties of Bharat Hotel MD Jyotsna Suri: sources to CNBC TV18
>> I-T Dept raids Bharat Hotel (Lalit Suri Group) MD, Jyotsna Suri & Her Associates
>> Lalit Suri Group owns hotels like The Lalit in New Delhi
>> Dept suspects case of big tax evasion
>> Along with Suri, her associate Jayant Nanda is also being raided
Alert: I-T Dept stands for Income Tax Dept
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