KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty End Lower For Fourth Consecutive Trading Session
Indian equities extended declines for the fourth consecutive trading session.
The S&P BSE Sensex fell 0.97 percent to end below 40,000 and the NSE Nifty 50 fell 1.01 percent to close below 11,700. The broader markets represented by the NSE Nifty 500 Index fell 1.05 percent.
All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Auto Index’s 2.15 percent fall.
Indian equity investors lost around Rs 5.6 lakh crore in four days, according to data available with Bombay Stock Exchange. Of this, they lost around Rs 3 lakh crore of wealth in just one day on Feb. 24.
That came after the 30-stock index fell over 1,400 points in four trading sessions.
Stocks Moving On Heavy Volumes
Prism Johnson
- Stock rose as much as 12.7 percent to Rs 69.80.
- Trading volume was more than 18 times its 20-day average.
Star Cement
- Stock rose as much as 14.5 percent to Rs 97.45.
- Trading volume was 10 times its 20-day average.
BASF India
- Stock rose as much as 15 percent to Rs 948.
- Trading volume was almost six times its 20-day average.
Future Consumer
- Stock fell as much as 7.9 percent to Rs 16.30.
- Trading volume was more than three times its 20-day average.
Fab Four Stocks Of The Day
Godawari Power & Ispat
- Stock rose as much as 9.8 percent to Rs 197.
- Company starts Rolling Mill and Iron Ore Beneficiation Plant. The Rolling Mill having a capacity of 4,00,000 tonnes per annum and Iron Ore Beneficiation Plant of 10,00,000 tons per annum have already received the Chhattisgarh Environment Conservation Board’s approval on Jan 18.
ITD Cementation
- Stock rose as much as 10.3 percent to Rs 60.70.
- ICRA assigns “Stable” Outlook to ITD Cementation’s credit rating. It was previous placed under “rating watch with developing implications”
India Cements
- Stock hits an upper circuit of 20 percent.
- Gopikishan Damani buys 85.22 lakh shares (2.8 percent) at Rs 82.7 each.
- Stock has rallied 37 percent in two days
Navin Fluorine
- Stock rose as much as 12.1 percent to Rs 1,629.80.
- Shares advanced up 78 percent in three months
Global Markets Update: Stocks Slide With U.S. Futures
Stocks fell in Europe and Asia on Wednesday and U.S. index futures erased an advance following another strong sell-off on Wall Street.
- The Stoxx Europe 600 Index declined 1.8 percent as of 8:50 a.m. London time.
- Futures on the S&P 500 Index fell 0.4 percent.
- Nasdaq 100 Index futures decreased 0.7 percent.
- South Korea’s Kospi index declined 1.3 percent.
- The MSCI Asia Pacific Index dipped 1.2 percent.
Get your daily fix of global markets here.
Source: Bloomberg
IOL Chemicals Rallies For Fourth Consecutive Trading Session
Shares of IOL Chemicals and Pharmaceuticals extended gains for the fourth consecutive trading session. The stock rose as much as 15.7 percent to Rs 310.45.
Trading volume was more than five times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Market Check: Sensex, Nifty At Day’s Low
Indian equities extended declines to trade at day’s low.
The S&P BSE Sensex fell 1.23 percent or 500 points to 39,787 and the NSE Nifty 50 fell 1.24 percent to below 11,650. The broader markets represented by the NSE Nifty 500 Index fell 1.26 percent.
Bloomberg Exclusive: Blackstone Is Said to Proceed To Acquire Coffee Day’s Tech Park
- Blackstone Group has proceeded with the acquisition of Coffee Day Enterprises’ technology park as it is set to pay the first tranche of Rs 150 crore as soon as Wednesday
- Another Rs 2,000 crore will be paid in the next two weeks
- The remainder of the Rs 2,700 crore deal will be paid within a year
Source: Bloomberg quoting people familiar with the matter.
India Cements Surges 40% In Two Days
Shares of India Cements extended rally for the second consecutive trading session. The stock rose as much as 19.9 percent to Rs 104.45, the highest since July 4, 2019.
That came after exchange data showed that Gopikishan Damani picked up 2.8 percent stake in the company on Tuesday. Gopikishan Damani is the brother of D-Mart promoter Radhakishan Damani.
The scrip advanced 40.7 percent in two trading sessions. Trading volume was more than 30 times its 20-day average, Bloomberg data showed.
Sectoral Check: NSE Nifty Auto Index Worst Performer
All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 1.4 percent fall.
Market Check: Sensex, Nifty Decline
Indian equities traded lower, extending declines for the fourth consecutive trading sessions.
The S&P BSE Sensex fell 0.56 percent to 40,053 and the NSE Nifty 50 fell 0.6 percent to 11,725. The broader markets represented by the NSE Nifty 500 Index fell 0.57 percent.
Large Trade Alert: Bharti Infratel
About 13.33 lakh shares of Bharti Infratel changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Adani Transmission Drops 17% In Three Trading Sessions
Shares of Adani Transmission extended declines for the third consecutive trading session. The stock fell as much as 6.9 percent to Rs 268.80.
The scrip slumped 17 percent in three trading sessions. The Relative Strength Index was below 30, indicating that the stock may be oversold, according to Bloomberg data.
Lemon Tree Hotels Extends Declines For Second Consecutive Trading Session
Shares of Lemon Tree Hotels extended declines for the second consecutive trading session. The stock fell as much as 8.6 percent to Rs 53.60.
The scrip is set for its worst two-day fall in 10 months. Lemon Tree Hotels traded at 93 times its estimated earnings per share for the coming year, according to Bloomberg data.
Large Trade Alert: Nippon Life, Sadbhav Engineering
- Nippon Life: Abut 17 lakh shares of the company changed hands in a large trade.
- Sadbhav Engineering: About 58 lakh shares or 3.4 percent equity changed hands in a large trade.
Buyers and sellers were not known immediately.
Source: Bloomberg
F&O Check: Nifty 11,700 Put Option Premium Jumps 49%
Nifty’s 11,700 put option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract, which is set to expire on Feb. 27, rose 48.57 percent to Rs 36.25. About 11.66 lakh shares were added to the open interest which stood at over 38.81 lakh shares.
UPL Falls After Large Trade
Shares of UPL extended declines for the fourth consecutive trading session. The stock fell as much as 1.8 percent to Rs 556.
About 12.4 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
The scrip declined 4.6 percent in the past five days and rose 2.8 percent in the past 30 days, according to Bloomberg data.
Bandhan Bank Gains After RBI Lifts Restrictions On Opening New Branches
Shares of Bandhan Bank rose as much as 4.7 percent to Rs 423.
The lender said that the country’s central bank has lifted the restriction on branch opening. “The bank plans to open 250 branches by March,” Bandhan Bank’s Managing Director and Chief Executive Officer CS Ghosh told BloombergQuint in an interaction.
Trading volume was six times its 20-day average, Bloomberg data showed. Of the shares traded, 41 percent were at the ask price and 38 percent were at the bid.
Sanofi India Jumps 8% To Record High After Q4 Results
Shares of Sanofi India rose as much as 8.8 percent, the most since November 2017, to hit an all-time high at Rs 7,640 after announcing December quarter results.
Key Earnings Highlights (Q4CY, 2019)
- Revenue rose 14 percent to Rs 826 crore
- Net profit rose 23 percent to Rs 97 crore
- Ebitda rose 30 percent to Rs 177.5 crore
- Margin stood at 21.5 percent versus 18.9 percent
Cipla Falls Nearly 5% After FDA Issues Warning Letter
Shares of Cipla extended declines for the fourth consecutive trading session. The stock fell as much as 4.7 percent, the most since October 2019, to Rs 405.80.
The drugmaker received a warning letter from the U.S. FDA after an inspection of facilities in Goa between Sept. 16-27. "The company remains committed to maintain the highest standard of compliance and will work closely with the agency to comprehensively address all observations,” Cipla said.
Trading volume was almost seven times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be oversold.
Opening Bell: Sensex, Nifty Open Lower
Indian equities opened lower, extending declines for the fourth consecutive trading session.
The S&P BSE Sensex fell as much as 0.98 percent or 393 points to 39,888 and the NSE Nifty 50 fell as much as 1 percent to 11,679. The broader markets represented by the NSE Nifty 500 Index fell as much as 0.88 percent.
The market breadth was tilted in favour of sellers. About 1,044 stocks declined and 429 shares advanced on National Stock Exchange.
All the sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 0.9 percent fall.
Your Complete F&O Trade Setup
Index Futures
- Nifty February futures closed at 11,816.5, premium of 18.6 points
- Nifty futures open interest across series down 2 percent, sheds 3.8 lakh shares in open interest
- Nifty Bank February futures closed at 30,467.9, premium of 35 points versus discount of 32 points
- Nifty Bank futures open interest across series down 5 percent, sheds 65,000 shares in open interest
- Rollover: Nifty at 48 percent, Nifty Bank 35 percent
Options
- Nifty PCR at 1.05 versus 1.10 (across all series)
Nifty Monthly Expiry: Feb 27
- Max open interest on call side at 12,000 (52.7 lakh shares)
- Max open interest on put side at 11,800 (32.7 lakh shares)
- Open interest addition seen in 11,900C (+10.3 lakh shares), 11,800C (+8.4 lakh shares)
- Open interest shedding was seen in 11,900P (-5.8 lakh shares)
Stocks In F&O Ban
- Yes Bank
BQ Heads-Up: Who's Meeting Whom
- Manappuram Finance to meet DSP and ASK Investment Managers on Feb. 26.
- Century Textiles to meet several investors and funds like Amansa Capital, Fidelity, HDFC MF among other on Feb. 26.
- Mahindra Lifespace developers to meet Kotak MF and First State Investments on Feb. 26.
- Tata Steel to meet several funds & broking houses including Credit Suisse, Nippon MF, ICICI Prudential Life Insurance among others between Feb. 27 to March 5.
- Allcargo Logistics to meet Ashmore Investment Management India and Locus Global on Feb. 26.
Insider Trading: ADF Foods, Som Distilleries, UltraTech Cement
- Ultramarine & Pigments promoter Sridhar Sundarrajan sold 4,491 shares on Feb. 24
- Som Distilleries & Breweries promoter Som Distilleries Private Limited acquired 2,000 shares on Feb. 24
- ADF Foods promoters acquired 600 shares on Feb. 24
- Ultratech Cement promoter Pilani Investment and Industries Corporation Limited sold 2.06 lakh shares on Feb. 20
- Galaxy Surfactants promoter Sridhar Unnathan sold 360 shares on Feb. 20
(As Reported on Feb. 25)
Bulk Deals: India Cements, Tata Chemicals
- India Cements: Gopikishan Damani bought 85.22 lakh shares (2.8 percent) at Rs 82.7 each.
- Tata Chemicals: Tata Sons bought 16.21 lakh shares (0.6 percent) at Rs 749.62 each.
Money Market Update: Rupee Opens Higher
The Indian rupee opened higher against the U.S. dollar. The home currency appreciates as much as 0.19 percent to 71.74 against the greenback.
Pre-Market Check: Sensex, Nifty Set To Open Lower
Indian equities are set to open lower.
The S&P BSE Sensex fell 0.16 percent to 40,216.27 during the pre-market trade and the NSE Nifty 50 fell 0.33 percent to 11,757.
How Indian ADRs Fared Overnight
Earnings Reaction To Watch: Sanofi India
Sanofi India (Q4CY, 2019)
- Revenue rose 14 percent to Rs 826 crore
- Net profit rose 23 percent to Rs 97 crore
- Ebitda rose 30 percent to Rs 177.5 crore
- Margin stood at 21.5 percent versus 18.9 percent
Stocks To Watch: Bandhan Bank, IRB Infra, Sanofi, Wockhardt
- Cipla received a warning letter from the U.S. FDA after an inspection of facilities in Goa between Sept. 16-27. "The company remains committed to maintain the highest standard of compliance and will work closely with the agency to comprehensively address all observations,” Cipla said.
- Sanofi to pay a final dividend of Rs 106 per share and a special dividend of Rs 243 per share.
- IRB Infra receives Letter of Acceptance from MSRDC for Mumbai-Pune Expressway and Old Mumbai Pune Highway Projects.
- Bandhan Bank says RBI lifted the restriction on branch opening.
- Wockhardt: India Ratings has placed Wockhardt’s rating on Rating Watch Evolving, indicating that the may be affirmed, downgraded or upgraded. The RWE follows Wockhardt's divestment of a portion of its domestic branded business to Dr. Reddy's Laboratories Ltd. for Rs 1,850 crore, said the credit rating agency. Also, CARE ratings has placed the company’s rating Under credit watch with positive implications.
- Godawari Power & Ispat starts Rolling Mill and Iron Ore Beneficiation Plant. The Rolling Mill has a capacity of 4,00,000 tonnes per annum and Iron Ore Beneficiation Plant has 10,00,000 tons per annum. It has already received the Chhattisgarh Environment Conservation Board’s approval on Jan 18.
- ICRA assigns “Stable” Outlook to ITD Cementation’s credit rating. It was previously placed under “rating watch with developing implications.”
- ICICI Prudential Life Insurance sold 8.33 lakh shares of NRB Industrial Bearings on Feb 24. Total holding in the company shrinks from 5.59 percent to 2.15 percent.
TRAI Data
- Vodafone Idea lost 36,44,453 users in December
- Bharti Airtel lost 11,050 users in December
- Reliance Jio added 82,308 users in December
Global Markets Update: U.S. Stocks Tumble
- U.S. stocks tumbled to an almost 12-week low and bond yields plunged to records on rising concern the coronavirus will upend global supply chains critical to economic growth.
- Oil deepened a three-day rout as panic over a coronavirus outbreak in the U.S. gripped investors and sent shockwaves through commodity, equity and debt markets.
Get your daily fix of global markets here.
SGX Nifty Suggests Stock Losses; Asian Stocks Tumble
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.8 percent to 11,724 as of 8:05 a.m.
Stocks in Asia fell after another epic rout on Wall Street and in the wake of a further escalation in coronavirus cases in South Korea, Asia’s fourth-largest economy.
Stock benchmarks fell over 1 percent from Seoul and Tokyo to Hong Kong and Shanghai.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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