Sensex, Nifty Snap 6-Day Winning Streak

Indian shares snapped their six-day winning streak as losses in banking and telecom stocks countered gains in index heavyweight Reliance Industries and select technology and pharmaceutical companies.

The S&P BSE Sensex declined 0.3 percent to 28,812 while the NSE Nifty dropped 0.5 percent to 8,896. This was the 50-share index’s second worst close this month. The market breadth, which was positive in early trades, turned in favour of the sellers by end of the session.

About 941 stocks declined, 712 advanced and 271 remained unchanged.

Profit booking after six days of gains isn’t something out of the ordinary, Dipen Shah, Sr. Vice President &Head PCG Research, Kotak Securities said. “Investors have taken up a cautious stance ahead of U.S. President’s speech in the Congress,” he told BloombergQuint in a phone interview.

In Trump’s address before a joint session of Congress on February 28, the president is expected to lay out his plans for tax and health-care reform and infrastructure spending. Investors will also be watching comments from Federal Reserve officials, including Yellen, who speaks at an event in Chicago at the end of the week.

Shah advised waiting on the side-lines until more clarity emerges on Trump administration’s fiscal policy plans. “I think the market is looking a bit stretched in terms of valuations. Any stock picking should be done with extreme care,” he said.

Shares of the healthcare firm gained as much as 9 percent to Rs 767 on heavy volumes. Its implied three-month volatility is 4.7 versus 47.5 daily average over the past year, according to Bloomberg data.

The call options contracts traded totalled 5.1 times while put option contracts traded totalled 3.4 times its the average of the past 20 days.

The stock is up 16.5 percent year-to-date, compared to 8.7 percent gain on the Sensex.

Shares of the drug maker snapped their two-day losing streak after its Japanese subsidiary Kyowa Pharmaceutical Industry entered into an agreement with Astellas Pharma Inc for exclusive right to distribute and promote extended-release tablets of quetiapine fumarate in Japan.

"When Astellas obtains an approval for the new drug application of extended-release tablets of quetiapine fumarate, based on the agreement, Kyowa will exclusively distribute and promote the products in Japan," Lupin said in its exchange filing.

The pharma company was trading 0.8 percent higher at Rs 1,462 a share on the NSE.

Shares of the lender gained as much as 8.6 percent to Rs 71, their highest level since July 2011. The stock saw volumes at around 6.1 times its 30-day average. The RSI was at 78, indicating that the stock may be overbought.

Year-to-date, it has risen 50.8 percent versus 8.6 percent for Sensex index.

Shares of the Kolhapur-based lender gained as much as 6.8 percent to Rs 488 – a fresh 52-week high for the stock – on volumes 7 times its 30-day average.

It has risen 13 out of the last 15 trading sessions, including today’s. The Relative Strength Index (RSI) is 84, indicating that the stock may be overbought. Among the 13 analysts that track the stock, 11 have a buy rating and 2 recommended hold, according to Bloomberg data.

Continuing its uptrend, the rupee firmed up by another 17 paise to 66.65 against the U.S. dollar in early trade on increased selling of the American currency by exporters and banks.

Besides, the dollar's weakness against some currencies overseas supported the rupee but a lower opening of the domestic equity market capped the gain, forex dealers said.

On Thursday, the rupee had gained 14 paise to close at 66.82 a dollar. Forex market was closed on Friday on account of Shivratri.

PTI

Indian shares fluctuated between gains and losses following weak trade in Asian peers as index heavyweight Reliance Industries advanced, countering decline in financial stocks.

The S&P BSE Sensex was little changed at 28,914 after swinging in a 120-point range. Meanwhile, the NSE Nifty too was unchanged at 8,947. The market breadth was skewed firmly in favour of the buyers. About 911 stocks advanced, 558 declined and 434 remained unchanged on the NSE.

Index heavyweight Reliance Industries jumped nearly 6 percent after brokerage house Morgan Stanley upgraded its target price on the Mukesh Ambani-led firm by 17.7 percent to Rs 1,506.

Movers & Shakers: ONGC, Reliance Industries, Coal India, SPARC And More

Major events that will shape the markets this week include India's GDP data and the U.S. President Donald Trump's address to a joint session of Congress on Tuesday.

India's fourth-quarter GDP is due tomorrow. This will be the first official data that will show the impact of demonetisation on the nation's economy.

Asian currencies were mixed in today's trade. The Japanese yen and Singapore Dollar rose against the dollar, while the Chinese yuan and Philippine peso fell against the greenback.

Benchmark sovereign bonds logged a fourth straight week of losses last week as Feb. 8 policy minutes reinforced the central bank's hawkish bias. State bond auction of over Rs 25,000 crore is slated for tomorrow. This may further dent the negative sentiment.

While International funds were net buyers of Rs 2,600 crore in Indian bonds on February 23, they were net sellers in Indonesian debt.

• Bharat Petroleum: Refinery signs pact with Finland company for bio-refinery
• Canara Bank: Says Can Fin Homes stake sale at Rs 2,000 a share base rate
• Mahindra Forging: Quarter end December profit Rs 10.94 crore versus Rs 5.81 crore YoY
• Oil & Natural Gas (ONGC): Approves investment of Rs 7,330 crore in 5 projects; Notifies 18-discoveries in FY17
• Power Grid Corp: Enters into up to $500 million loan pact with ADB
• Tata Consultancy: Gets order from Community Savings Bank Association, UK for BaNCS on the cloud
• Tata Power: Synchronises 15mw solar plant at Telangana
• Jindal Steel raised to outperform at Batlivala & Karani Sec.
• ICRA downgrades ratings on various bonds issued by IDBI Bank

Earnings To Watch

• Merck India
• Sanofi India
• Vesuvius India

Offerings

Jagran Prakash's arm Music Broadcast to raise up to Rs 400 crore via new share issue.

• To sell shares at Rs 324-333 apiece
• IPO to include OFS for 2.66 million shares by shareholders

Bharat Electronics OFS retail portion gets 3.67 times demand; non-retail portion gets 2.34 times demand

For a complete list of stocks to watch, click HERE

• Finance Minister Arun Jaitley, speaks at London Stock Exchange followed by a meeting with prospective issuers and investors in London
• Jaitley to meet business leaders from the UKIBC and later meet Boris Johnson, U.K. foreign secretary
• 02/24-02/28: Eight infrastructure industries index for Jan. (Prior +5.6%)

• Edelweiss said nearing deal to purchase stake in Adhunik Power (Bloomberg)
• RBI releases norms for issue of sovereign gold bonds series- IV
• Greenko’s dollar bonds drop after report of income tax raids
• India Planters Group seeks no cut in 25 percent import duty on rubber
• Government stake sale in Bharat Electronics via OFS got good response, says finance ministry

Also Read: A Billion Identities At Risk Even As Modi Seeks To Make Aadhaar Compulsory

Global funds buy Rs 392 crore of local stocks; domestic funds sell Rs 445 crore on February 23: Provisional data

• Lone Star, IL&FS plan $550 million India stressed asset fund
• India orders random inspections of Pratt & Whitney jet engines powering Airbus A320neo planes, a person with direct knowledge of the matter told Bloomberg
• India forex reserves at $362.7 billion as of February 17
• Wind power costs plunge in India’s first auction for contracts

• Axis Bank among 3 firms probed for illegal biometric use (Times of India)
• Lenders get controlling stake in Jaiprakash Power on default
• India said to clear deal to develop missile with Israel (PTI)
• Airtel said to complete Millicom Ghana merger talks (Citi FM)

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, declined nearly 0.4 percent to 8,937.

Asian stocks fell in early trade while the Japanese yen strengthened at the start of the week in which President Donald Trump will stand before the U.S. Congress and Fed Chair Janet will also speak.

In Trump’s address before a joint session of Congress on February 28, the president is expected to lay out his plans for tax and health-care reform and infrastructure spending. Investors will also be watching comments from Federal Reserve officials, including Yellen, who speaks at an event in Chicago at the end of the week.

The odds of a rate hike in March have risen to 40 percent, according to futures rates tracked by Bloomberg.

This week’s economic data includes U.S. personal income and spending. India and Australia will report on fourth-quarter GDP. China’s PMI data are expected to show continued expansion. Japan reports on factory output, housing starts and capital spending.

Crude hovered around the $54 mark even as separate data points from the U.S. indicated increased drilling activity and higher stockpiles.

Oil rig count rose by five to 602 last week, the highest level since October 2015, according to Baker Hughes Inc. Crude inventories increased to a record last week, according to the U.S. Energy Information Administration.

Gold traded around $1,257 an ounce after gaining 1.8 percent last week, its fourth consecutive weekly advance.