KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Recover After Falling For Four Consecutive Trading Sessions
Indian equities ended higher, halting their four-day losing streak.
The S&P BSE Sensex rose 1.05 percent or 429 points to close at 41,323 and the NSE Nifty 50 rose 1.15 percent to end at 12,125.90. The broader markets represented by the NSE Nifty 500 Index rose 1.3 percent.
The market breadth was tilted in favour of buyers. About 1,175 stocks advanced and 618 shares declined on National Stock Exchange.
All the 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Pharma Index’s 2.3 percent gain.
Fab Four Stocks Of The Day
Aurobindo Pharma
- Shares jump the most in over 12 years.
- The drugmaker received the Establishment Inspection Report with Voluntary Action Initiated status from U.S. FDA after the inspection of Unit IV, a general injectable formulation manufacturing facility of the company, according to its statement to the exchanges.
Torrent Pharma
- Fresh longs seen with high open interest of 34 percent.
- Trading volume was 2.5 times its 20-day average.
Voltas
- Stock set for longest winning streak in four months
- Shares jump 30 percent so far this year.
Nippon Life India Asset Management
- Shares rose as much as 7.6 percent, the most since Nov. 13, 2019, to hit an all-time high at Rs 421.90.
BQ Exclusive: SBI Approves Suzlon Energy Restructuring Plan
Stocks Moving On Heavy Volumes
Hathway Cable & Datacom
- Stock rose as much as 14 percent to Rs 26.35.
- Trading volume was more than 20 times its 20-day average.
DEN Networks
- Stock rose as much as 10 percent to Rs 65.50.
- Trading volume was 14 times its 20-day average.
Shree Cement
- Stock rose as much as 6 percent to Rs 25,199.
- Trading volume was almost seven times its 20-day average.
IIFL Wealth Management
- Stock rose as much as 6.4 percent to Rs 1,663.95.
- Trading volume was almost seven times its 20-day average.
Global Markets Update: Europe Stocks Climb With U.S. Futures
Stocks in Europe rose with U.S. equity futures on Wednesday after signs China may be planning further measures to support parts of its economy reeling from a virus-induced slowdown.
- Futures on the S&P 500 Index advanced 0.2 percent as of 8:09 a.m. London time.
- The Stoxx Europe 600 Index advanced 0.3 percent.
- The MSCI Asia Pacific Index increased 0.3 percent.
- The MSCI Emerging Market Index advanced 0.5 percent.
Get your daily fix of global markets here.
Source: Bloomberg
Sadbhav Engineering Falls For Ninth Consecutive Trading Session
Shares of Sadbhav Engineering extended declines for the ninth consecutive trading session. The stock fell as much as 15.2 percent, the most since August 2019, to Rs 76, the lowest since March 2014.
The Relative Strength Index was below 30, indicating that the stock may be overbought, Bloomberg data showed. Trading volume was 10 times its 20-day average.
Hindustan Aeronautics Halted Its Four-Day Losing Streak
Shares of Hindustan Aeronautics halted their four-day losing streak. The stock rose as much as 11.4 percent, the most in over a year, to Rs 784.5.
Trading volume was more than 10 times its 20-day average, Bloomberg data showed. The scrip declined 1.2 percent in the past five days and declined 7 percent in the past 30 days.
Bharat Dynamics Gains For Second Day, Shares Surge 12%
Shares of Bharat Dynamics extended gains for the second consecutive trading session. The stock rose as much as 11.6 percent, the most since Oct. 29, 2019, to Rs 299.80.
Trading volume was more than seven times its 20-day average, Bloomberg data showed. The scrip traded at 11 times its estimated earnings per share for the coming year, according to Bloomberg data.
Vodafone Idea Surges The Most On Record
Shares of Vodafone Idea rose as much as 48.3 percent, the most on record, to Rs 4.45.
“The government is unlikely to invoke Vodafone Idea’s bank guarantees for now, even as the officials of the telecom and finance ministries met Cabinet secretary Rajiv Gauba to discuss ways to ensure that the sector retains three private players,” Economic Times reported quoting officials.
Trading volume was more than three times its 20-day average, Bloomberg data showed. Of the shares traded, 58 percent were at the ask price and 41 were at the bid.
Nippon Life India Asset Management Jumps Nearly 8% To Record High
Shares of Nippon Life India Asset Management rose as much as 7.6 percent, the most since Nov. 13, 2019, to hit an all-time high at Rs 421.90.
The scrip extended gains for the second consecutive trading session. The stock traded at 40 times its estimated earnings per share compared to 24.5 times for the two-year historical average, according to Bloomberg data.
Sectoral Check: NSE Nifty Pharma Index Best Performer
Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 2 percent advance. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 1 percent.
F&O Check: Nifty 12,000 Call Option Premium Jumps 52%
Nifty’s 12,000 call 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. 20, rose 51.95 percent to Rs 72.25. About 5.05 lakh shares were removed from the open interest which stood at over 10.9 lakh shares.
Gayatri Projects Falls For Twenty Eighth Consecutive Trading Session
Shares of Gayatri Projects fell for the twenty eighth consecutive trading session. The stock hit its lower circuit of 5 percent at Rs 26.60, the lowest since March 2015.
The scrip is set for its longest losing streak on record. The Relative Strength Index was at 6, indicating that the stock may be oversold, Bloomberg data showed
Reliance Industries Halts Two-Day Losing Streak
Shares of Reliance Industries halted their two-day losing streak. The stock rose as much as 1.4 percent to Rs 1,487.95.
The Mukesh Ambani-led conglomerate is said to be in talks to sell a minority stake in its oil-to-chemical division to Saudi Aramco have been gathering pace in recent weeks, Bloomberg reported quoting people familiar with the matter.
The scrip returned 0.9 percent in the past five days and fell 6.2 percent in the past 30 days, according to Bloomberg data.
Kotak Mahindra Bank Gains After Receiving Final Approval From RBI On Founders’ Stake Dilution
Shares of Kotak Mahindra Bank rose as much as 2.98 percent to Rs 1,740.
“The Reserve Bank of India has granted its final approval for Kotak Mahindra Bank’s proposal to dilute founders’ shareholding via a letter dated Feb. 18,” the lender said in a statement to the exchanges.
The stock traded at 36 times its estimated earnings per share for the coming year, according to Bloomberg data.
Aurobindo Pharma Surges The Most In 11 Years
Shares of Aurobindo Pharma rose as much as 18 percent, the most since January 2009, to Rs 590.20.
The drugmaker received the Establishment Inspection Report with Voluntary Action Initiated status from U.S. FDA after the inspection of Unit IV, a general injectable formulation manufacturing facility of the company, according to its statement to the exchanges.
Trading volume was almost 10 times its 20-day average, Bloomberg data showed. Of the shares traded, 43 percent were at the ask price and 38 percent were at the bid.
Opening Bell: Sensex Opens Nearly 400 Points Higher; Nifty Above 12,100
Indian equities opened higher, halting their four-day losing streak.
The S&P BSE Sensex rose as much as 0.9 percent to 41,276 and the NSE Nifty 50 rose as much as 0.96 percent to 12,107. The broader markets represented by the NSE Nifty 500 Index rose 0.85 percent.
All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 1.9 percent gain.
Your Complete F&O Trade Setup
Futures
- Nifty February futures closed at 12,019, premium of 27 points
- Nifty February futures open interest down 0.8 percent, sheds 1 lakh shares in open interest
- Nifty Bank Feb futures closed at 30,625, premium of 63 points
- Nifty Bank futures open interest down 1.7 percent, sheds 19,000 shares in open interest
Options
Nifty PCR at ** Vs 1.14 (across all series) – to update in the morning
Nifty Weekly Expiry: Feb 20
- Max open interest on call side at 12,100 (22.5 lakh shares)
- Max open interest on put side at 11,900 (18.8 lakh shares)
- Open Interest addition seen at 12,000C (+11.4 lakh shares), 11,900P (+7.4 lakh shares)
- Open Interest shedding seen at 12,200C (-7.8 lakh shares)
Nifty Monthly Expiry: Feb 27
- Max open interest on call side at 12,200 (28.2 lakh shares)
- Max open interest on put side at 12,000 (33.6 lakh shares)
Stocks In F&O Ban
- NCC
- Yes Bank
BQ Heads-Up: Who's Meeting Whom
- Trent to meet Dalal & Broacha Stock Broking on Feb. 20
- CRISIL to meet Aditya Birla Sun Life MF on Feb. 20
- Mahindra Lifespace Developers to meet Locus Investments on Feb. 19
- PI Industries to meet CX Partners and JM Financial from Feb. 19-25
- Mahindra Logistics to meet Harding Loevner and Kotak Securities on Feb. 19
Trading Tweaks: Caplin Point Laboratories, IndoStar Capital Finance
- Continental Seeds and Chemicals, Vadivarhe Speciality Chemicals, KPI Global Infra to move into ASM Framework
- Trejhara Solutions, Mohit Industries to move into short term ASM Framework
- Caplin Point Laboratories, IndoStar Capital Finance to move out of short term ASM Framework
- TCI Finance, Tata Teleservices (Maharashtra), Shemaroo Entertainment price band revised to 5 percent
Pre-Market Check: Sensex, Nifty Set To Open Higher
Indian equities are set to open higher.
The S&P BSE Sensex rose 0.3 percent to 41,022 during the pre-market trade and the NSE Nifty 50 rose 0.26 percent to 12,021.
How Indian ADRs Fared Overnight
Nifty Rejig: Shree Cement In, Yes Bank Out
Shree Cement Ltd. will replace private lender Yes Bank Ltd. in the benchmark Nifty 50 Index from March 27.
The National Stock Exchange of India Ltd. has also revised the criteria for inclusion of companies in its sectoral indices, according to its press release. Companies should now be part of the Nifty 500 index at the time of review against the existing criteria of ranking among the top 800 firms in terms of both average daily turnover and average daily full market in the previous six months.
Nifty Next 50
Inclusion
- Adani Transmission
- IDBI Bank
- Info Edge
- Larsen & Toubro Infotech
- Torrent Pharmaceuticals
Exclusion
- Ashok Leyland
- Indiabulls Housing Finance
- L&T Finance Holdings
- Shree Cement
- Vodafone Idea
Nifty 500
Inclusion
- Bharat Rasayan
- Century Textile & Industries
- Future Supply Chain Solutions
- Garden Reach Shipbuilders & Engineers
- GMM Pfaudler
- Gujarat Fluorochemicals
- Hathway Cable & Datacom
- IIFL Wealth Management
- IRCTC
- Ingersoll Rand
- JTEKT India
- Mahindra Lifespace Developers
- Navneet Education
- Sharda Cropchem
- Reliance Capital
- Shipping Corporation of India
- Sterling And Wilson Solar
- Reliance Power
- Tata Communications
- Tata Steel Long Products
- Transport Corporation of India
- Vesuvius India
Exclusion
- Bliss GVS Pharma
- Dewan Housing Finance Corporation
- IFCI
- Indiabulls Integrated Services
- ITD Cementation
- Jain Irrigation Systems
- Kennametal India
- Kirloskar Oil Eng
- Lakshmi Vilas Bank
- Magma Fincorp
- National Fertilizers
- Parag Milk Foods
- PC Jeweller
- Reliance Infrastructure
- Shilpa Medicare
- Sundaram Clayton
- Tasty Bite Eatables
- Va Tech Wabag
Nifty Midcap 100 Exclusions
- Future Consumer
- Graphite India
- HEG
- IDBI Bank
- Info Edge
- L&T Infotech
- NBCC India
- Sterlite Technologies
- Torrent Pharmaceuticals
- Varroc Engineering
Nifty Midcap 100 Inclusions
- Adani Gas
- Adani Green Energy
- Ashok Leyland
- Indiabulls Housing Finance
- IRCTC
- L&T Finance Holdings
- NIIT Technologies
- Polycab India
- Vodafone Idea
- Yes Bank
Nifty Small Cap 100 Exclusions
- Arvind Fashions
- BSE Ltd
- CARE Ratings
- CPCL
- CreditAccess Grameen
- DHFL
- Future Lifestyle Fashions
- Gujarat Alkalies & Chemicals
- India Cements Ltd
- J.K. Cement
- Karnataka Bank
- Minda Industries
- NIIT Technologies
- Suzlon Energy
- Venky's (India)
Nifty Small Cap 100 Inclusions:
- Affle (India)
- Bajaj Consumer Care
- Birla Corporation
- Capri Global Capital
- Century Textile & Industries Ltd
- Dixon Technologies (India)
- Graphite India Ltd
- HEG
- HeidelbergCement India
- Indian Energy Exchange Ltd
- Inox Leisure
- Navin Fluorine International
- NBCC (India)
- Sterling And Wilson Solar
- Sterlite Technologies
Stocks To Watch: HCL Tech, Infosys, RIL
- Reliance Industries in talks to sell a minority stake in its oil-to-chemical division to Saudi Aramco have been gathering pace in recent weeks, Bloomberg reported quoting people familiar with the matter.
- HCL Technologies to launch Global Delivery Centre in Connecticut, USA with anchor client, Stanley Black & Decker.
- Siti Networks: Brickwork Ratings downgraded the company’s long-term bank loan facilities worth Rs 883.46 crore to BWR D from BWR BB (negative). The downgrade was due to the delays in debt servicing.
- Den Networks, TV18 Broadcast, Hathway Cable & Datacom: Board approved the merger scheme of the afore-mentioned companies into Network18 Media & Investments.
- Avenue Supermarts promoter sold 1.48 crore shares (2.28 percent) in pubic via OFS. Promoter holding now stands at 74.99 percent of the total paid-up capital of the company.
- Infosys has partnered with GE Appliances for digital solutions.
- Bharat Road Networks said that application has been filed against the company by ILFS before NCLT claiming a sum of Rs 70 crore. The company stated that it has an outstanding of Rs 139.02 crore against the ILFS group for which they have initiated the recovery proceedings.
- Balkrishna Industries: HDFC MF decreased its stake from 8.06% to 5.99% on February 17.
- Future Consumer promoters hold 46.29 percent stake in the company, out of which 89.1 percent is pledged.
- Tata Consumer Products (Tata Global Beverages) sold 7.05 lakh shares (0.28 percent) and Tata Chemicals sold 1.6 lakh shares (0.06 percent) to promoter Tata Sons, respectively on Feb. 18.
- Ruchi Soya Industries: SBI Cap Trustee on behalf of lenders increased its stake from 50.7 percent to 98.87 percent in the company on encumbrance via pledge on Feb. 17.
- Quess Corp approved merger 4 wholly-owned arms with self.
Global Cues: Oil Stabilises
- Stocks slumped after Apple Inc.’s warning that sales will miss forecasts spooked investors who had hoped for a limited economic impact from the deadly coronavirus that originated in China.
- Oil stabilised after American sanctions on Russia’s largest producer helped to erase losses driven by lingering concerns that coronavirus will reduce demand.
Get your daily fix of global markets here.
SGX Nifty Suggests Positive Start; Asian Stocks Trade Mixed
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.45 percent to 12,072 as of 8:40 a.m.
Stocks in Asia were mixed on Wednesday as investors assessed new cases of the coronavirus outside China, with markets continuing to suggest a view that its impact will prove short-lived.
Equities in South Korea were lower as new virus cases were confirmed. Still, in Japan, shares rose.
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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