Sensex Slumps 560 Points, Nifty Wipes Out 2018 Gain On Global Equity Selloff

Indian equity benchmarks fell for the sixth straight day and the rupee weakened 0.2 percent to 64.19 against the dollar as the global stock sell-off weighed on investor sentiment.

The S&P BSE Sensex slumped 1.6 percent, or 561 points, to 34,195.94, and the NSE Nifty 50 Index plunged 1.58 percent, or 168 points, to 10,498.25.

Losses in today's session wiped out over Rs 2 lakh crore from the market value of the Indian benchmarks.

Selling pressure was broad-based as the S&P BSE MidCap Index fell 1.7 percent and the S&P BSE SmallCap Index tumbled 2.2 percent.

All sector gauges compiled by the BSE ended lower, dragged down by the S&P BSE Consumer Durables Index's 2.7 percent drop.

Shares of the Mumbai-based drug maker fell 4 percent to Rs 814 after its net profit missed consensus estimates compiled by Bloomberg.

Key earnings highlights:

• Consolidated net profit at Rs 221.7 crore versus Bloomberg estimate Of Rs 426 crore
• Consolidated net profit down 65 percent at Rs 221.7 crore versus Rs 633 crore (YoY)
• Consolidated revenue at Rs 3,975.6 crore versus Bloomberg estimate Of Rs 3,969 crore
• Consolidated revenue down 11 percent at Rs 3,975.6 crore versus Rs 4,483 crore (YoY)
• Consolidated EBITDA at Rs 688.34 crore versus Rs 1,218.6 crore (YoY)
• Consolidated margin at 17.3 percent versus 27.2 percent (YoY)

Lupin Says

• R&D investment at 12.2 percent of consolidated sales
• Europe, Middle-East, Africa sales up 6.5 percent at Rs 2,721 crore versus Rs 2,555 crore (YoY)
• Latin America sales up 26 percent at Rs 1,481 crore versus Rs 1,175 crore (YoY)
• U.S. business starting to stabilise at current level
• North America sales down 34.2 percent at Rs 14,321 crore versus Rs 21,755 crore (YoY)
• Q3 foreign exchange loss at Rs 82.1 crore versus gain of Rs 27.6 crore (YoY)
• Took Rs 36.1 crore charge on U.S. tax law changes
• India sales up 6.8 percent at Rs 10,688 crore versus Rs 9,912 crore (YoY)

Indian equity benchmarks staged a partial recovery after the U.S. stock futures recovered from their intraday lows.

The NSE Nifty 50 Index reclaimed its crucial psychological level of 10,500.

• Indian equity benchmarks held on to losses and continued to witness heavy selling pressure across the board.
• The S&P BSE Sensex plunged 2.5 percent or 875 points to 33,883 and the NSE Nifty 50 Index slumped 2.47 percent or 264 points to 10,402.
• In today's fall Nifty lost its market cap by Rs 2 lakh crore.
• All sector gauges compiled by BSE were trading lower dragged down by the S&P BSE Realty Index's 4 percent drop.
• All stocks in the Nifty 50 basket were trading with a negative bias with Tata Motors, Axis Bank, HCL Technologies, Kotak Mahindra Bank and UPL among the top losers.

Shares of the Gurugram-based tyre maker came off day's low and was down 2.5 percent at Rs 245.65 after it beat consensus earning estimates compiled by Bloomberg.

Key earnings highlights:

• Consolidated net profit at Rs 245 crore versus BQ estimate Of Rs 215 crore
• Consolidated net profit down 17 percent at Rs 245 crore versus Rs 295.7 crore (YoY)
• Revenue at Rs 4,050 crore versus Bloomberg estimate Of Rs 3,853 crore
• Revenue up 17 percent at Rs 4,050 crore versus Rs 3,457.9 crore (YoY)

• Recommend investors to stay away from buying individual stocks
• This correction is essentially the removal of froth
• Put your money in mutual funds instead of individual stocks
• Stronger recovery in U.S. economy will improve earnings going forward
• Buy more now as recovery in the U.S. economy is anticipated
• Hedge fund flows will get impacted as cost of borrowing will go up now
• Hot money may get impacted but there is still value in Indian markets

Shares of the Mumbai-based air conditioner maker declined 1.2 percent to Rs 711 after it missed earnings estimate compiled by Bloomberg.

Key earnings highlights:

• Net profit at Rs 18.78 crore versus Bloomberg estimate of Rs 21.6 crore
• Consolidated net profit up 29 percent at Rs 18.78 crore versus Rs 14.50 crore (YoY)
• Consolidated revenue up 6.9 percent at Rs 981.3 crore versus Rs 917.8 crore (YoY)
• Consolidated EBITDA up 51.4 percent at Rs 51.33 crore versus Rs 33.91 crore (YoY)
• Margin at 5.2 percent versus 3.7 percent (YoY)
• Board approves setting up JV in UAE to expand international operations

Shares of Pune-based state-run lender fell as much as 3.88 percent to Rs 18.60 after its asset quality deteriorated in October-December quarter.

Key earnings highlights:

• Gross NPA at 19.05 percent versus 18.54 percent (QoQ)
• Net loss at Rs 597 crore versus loss of Rs 182.5 (YoY)
• Net NPA at 12.17 percent versus 12.68 percent (QoQ)
• Basel III Capital Adequacy at 11.29 percent as On Dec. 31
• NII up 21.4 percent at Rs 852.6 crore versus Rs 702.2 crore (YoY)

Shares of the Delhi-based government-owned lender were trading 3.9 percent lower at Rs 157.25 after it reported December quarter earnings.

Key earnings highlights:

• Standalone net profit at Rs 230 crore versus Bloomberg estimate Of Rs 556 crore
• Standalone net profit up 11 percent at Rs 230 crore versus Rs 207 crore (YoY)
• Gross NPA at 12.1 percent versus 13.3 percent (QoQ)
• Net NPA at 7.5 percent versus 8.4 percent (QoQ)
• Standalone NII up 6.9 percent at Rs 3,989 crore versus Rs 3,731 crore (YoY)
• Provisions at Rs 4,466.7 crore versus Rs 2,440.8 crore (QoQ); Rs 2,562.2 crore (YoY)
• Gross NPA at Rs 57,519 crore versus Rs 57,630 crore (QoQ)
• Net NPA At Rs 34,075.6 crore versus Rs 34,570 crore (QoQ)
• To provide Rs 800 crore more by March for RBI second list accounts
• Profit on sale of stake in PNB Housing Finance Rs 1,232 cror
• Provision coverage ratio at 60.78 percent as on Dec. 31

Shares of the Assam-based oil explorer rose as much as 4.2 percent, the most since Dec. 28, to Rs 350.80 after it informed stock exchanges that its board will meet on Feb. 9 to discuss issue of bonus shares.

Shares of the debt-laden Delhi-based steel maker rose as much as 9.75 percent, the most since Jan. 29, to Rs 49 as it attracted bids from suitors including domestic rivals JSW Steel and Tata Steel. The stock snapped its three-day losing streak to become the top gainer on NSE Nifty 500 Index.

The company is being resolved under the Insolvency and Bankruptcy Code, and its bidding process will be opened by the resolution professional today. While Tata Steel has submitted an individual bid, a consortium of JSW-Piramal-Bain is said to have offered another value.

Shares of the Bangalore-based innerwear maker rose as much as 1.46 percent to Rs 19,438 in a weak market session on the back of heavy volumes.

As many as 5,550 shares changed hands on the BSE compared with an average of 386 shares traded daily in the past two weeks.

Gauge of top public and private sector lenders — Nifty Bank Index fell 3.4 percent, its biggest single day fall in nearly 15 months, to 25,220.

• State Bank of India has 22.6 lakh shares change hands in a block.

Buyers and sellers were not immediately known

Source: Bloomberg

Below 200-Day Moving Average

1. Bharti Airtel
2. Cipla
3. Indian Oil
4. State Bank of India
5. Sun Pharma

Below 100-Day Moving Average

• GAIL India
• HDFC Bank
• Indiabulls Housing Finance
• IndusInd Bank
• Kotak Mahindra Bank
• Vedanta
• Wipro
• Yes Bank

Below 50-Day Moving Average

• Axis Bank
• Bosch
• HDFC Bank
• Hindustan Unilevr
• ICICI Bank
• Indiabulls Housing Finance
• IndusInd Bank
• Sun Pharma
• Vedanta

The NSE Nifty 50 Index posted its fifth worst single-day fall in absolute terms since inception after it fell over 300 points.

Market breadth was extremely bearish as 2,203 shares were declining while only 176 were advancing on the BSE.

JBM Auto

• Stock fell as much as 12.8 percent to Rs 385.25.
• Trading volume was 10.6 times its 20-day average.

IST

• Stock fell as much as 5 percent to Rs 1,036
• Trading volume was 13.9 times its 20-day moving average.

Summit Securities

• Stock fell as much as 10.6 percent to Rs 800.
• Trading volume was 5.8 times its 20-day average.

NBCC

• Stock fell as much as 14.5 percent to Rs 176.
• Trading volume was 4.9 times its 20-day average.

Andhra Sugars

• Stock fell as much as 10.7 percent to Rs 549.60.
• Trading volume was 4.3 times its 20-day average.

BEML

• Stock fell as much as 9.5 percent to Rs 1,140.
• Trading volume was 3.5 times 20-day average.

Shares of the Mumbai-based specialty chemical maker rose as much as 9 percent, the most since Dec. 27, to Rs 433 in an otherwise weak market after it reported December quarter earnings.

Key earnings highlights:

• Net profit rose 64 percent to Rs 5 crore versus Rs 3.08 crore (YoY)
• Revenue rose 41 percent to Rs 46.36 crore versus Rs 32.9 crore (YoY)

Shares of the Bangalore-based fabricated metal products maker fell as much as 9 percent, the most since Feb. 5, to Rs 800 after its profit declined in December quarter.

Key earnings highlights:

• Revenue up 21 percent at Rs 279 crore.
• Net profit down 31 percent at Rs 9 crore.
• Ebitda down 12 percent at Rs 20.8 crore.
• Margin at 7.5 percent versus 10.3 percent.

Shares of e-governance service provider were locked in lower circuit for fifth day in a row.

The stock has fallen over 50 percent in five trading sessions to Rs 212.80.

• India market story is intact, seeing a much-needed correction.
• Some over-valuations will get corrected in few weeks from now.
• In a way, this is a healthy market correction.
• Should wait and see how Europe opens today.
• There could be more pressure in the second half of the day.
• India is on a cusp of a very strong earnings recovery.
• GST may stake a couple of months to stabilize.
• EMs will find favour, India being high growth market will benefit most
• Corrections in markets need to be bought into for long term play.

Shares of the Mumbai-based vehicle maker fell as much as 10 percent, the most in nearly 15 months, to Rs 356.50, its lowest since March 2016 after its profit missed estimates by a wide margin in the October-December quarter because of lower sales in the U.S. and European markets.

Key earnings highlights:

• Revenue up 16 percent at Rs 74,156 crore.
• Net profit up 13 times at Rs 1,199 crore.

• Ebitda up 37 percent at Rs 8,543 crore.

• Margin at 11.5 percent versus 9.7 percent.
• JLR margin at 10.9 percent versus 10.1 percent.

Indian equity benchmarks sank in line with other global markets after U.S. stocks fell the most since Aug. 2011.

The S&P BSE Sensex plunged 3 percent or 1,070 to 33,700 and the NSE Nifty 50 Index slumped 3 percent to 10,343.

Intense selling pressure was seen across the broad as the S&P BSE MidCap Index tanked 3.5 percent and the S&P BSE SmallCap Index plunged 3.8 percent.

All sector gauges compiled by National Stock Exchange were trading lower dragged down by the Nifty PSU Bank Index's 4 percent drop.

All shares in the Nifty 50 basket were trading lower.

Also Read: Strategist Who Called Stock Slump Says It Will Be Short-Lived

Rupee weakened 0.58 percent, to its lowest since Dec. 18 at 64.43 per dollar against yesterday's close of 64.06.

• Feel comfortable with current sell-off in the markets
• This is a normal correction and have seen it many times
• There have been some excesses built in because of complacency
• See this as an opportunity to buy in falling markets
• Investor community will have a good time holding Indian equities
• Mid-caps and small-caps have corrected more than large-caps
• Economy is poised to grow at 8-9 percent if it is managed well
• Unprecedented change happening in corporate governance in India
• Investor community will have a good time holding Indian equities

Indian bond traders have had a difficult February already — just a few days in and benchmark 10-year bond yields have surged 18 basis points.

Traders may finally get some respite today with bonds likely to gain amid a slide in global crude oil prices, which should help ease inflationary worries.

There's also the RBI policy decision to look forward to with its two-day meeting starting today.

The market is hoping that policy makers support soured sentiment in the bond market by raising the limits for foreign investments in government debt and announce bond purchases via its open market operations.

Benchmark 10-year yield rose 4 basis points to 7.61 percent on Monday, after jumping 26 basis points last week.

The rupee on the other hand is likely to take its cue from weak global equity markets -- with the MSCI Asia Pacific equity index down nearly 3 percent following on from the drop in U.S. equities.

• Don’t see this as a big crisis, because U.S. fundamentals are good
• Two days is too early to see a trend in volatility
• Expect U.S. deficit to increase due to tax cut
• Sell-off to be negative for sentiments in EM’s
• We don’t want weaker currency, high interest rate to attract flows

• Hero MotoCorp
• Lupin

Other Earnings To Watch

• Advanced Enzyme Technologies
• AIA Engineering
• Apollo Tyres
• Bank Of Maharashtra
• Berger Paints
• Blue Star
• Castrol India
• Dish TV India
• Future Retail
• JSW Energy
• KEC International
• Natco Pharma
• Oracle Financial Services Software
• Punjab National Bank
• REC
• Siemens
• Spicejet
• Tata Chemicals
• Thermax

Tata Motors Q3 (YoY)

• Revenue up 16 percent at Rs 74,156 crore.
• Net profit up 13 times at Rs 1,199 crore.
• Ebitda up 37 percent at Rs 8,543 crore.
• Margin at 11.5 percent versus 9.7 percent.
• JLR margin at 10.9 percent versus 10.1 percent.

Century Ply Q3

• Net sales up 20 percent at Rs 510 crore.
• Net profit up 27 percent at Rs 47 crore.
• Ebitda up 29 percent at Rs 87 crore.
• Margin at 17.1 percent versus 15.8 percent.

Manali Petrochemical Q3 (YoY)

• Revenue up 17 percent at Rs 162 crore.
• Net profit up 31 percent at Rs 17 crore.
• Ebitda up 96 percent at Rs 30.4 crore.
• Margin at 18.8 percent versus 11.2 percent.

MM Forgings Q3 (YoY)

• Revenue up 27 percent at Rs 152 crore.
• Net profit up 50 percent at Rs 15 crore.
• Ebitda up 31.25 percent at Rs 31.5 crore.
• Margin at 20.7 percent versus 20 percent.

BASF Q3 (YoY)

• Revenue up 14 percent at Rs 1,279 crore.
• Net profit of Rs 6.9 crore versus net loss of Rs 47 crore.
• Ebitda at Rs 68 crore versus Rs 16 crore.
• Margin at 5.3 percent versus 1.4 percent.

Cochin Shipyard Q3 (YoY)

• Revenue up 6 percent at Rs 615 crore.
• Net profit up 27.5 percent at Rs 176 crore.
• Ebitda up 20.7 percent at Rs 137 crore.
• Margin at 22.3 percent versus 19.5 percent.

Ujjivan Financial Services Q3 (YoY)

• NII down 1.6 percent at Rs 196 crore.
• Net profit down 33.3 percent at Rs 29.3 crore.
• Gross NPA at 4.24 percent versus 4.99 percent (QoQ).
• Net NPA at 1.04 percent versus 1.38 percent (QoQ).

Greaves Cotton Q3 (YoY)

• Revenue up 10.6 percent at Rs 447 crore.
• Net profit up 26.4 percent at Rs 55.6 crore.
• Ebitda up 3 percent at Rs 62 crore.
• Margin at 13.9 percent versus 14.9 percent.

Hudco Q3 (YoY)

• Net Interest Income up 18.5 percent at Rs 502 crore.
• Net profit down 10 percent at Rs 163.6 crore.
• Gross NPA at 6.99 percent versus 7.10 percent (QoQ).
• Net NPA at 1.84 percent versus 1.78 percent (QoQ).

Timken India Q3 (YoY)

• Revenue up 21 percent at Rs 279 crore.
• Net profit down 31 percent at Rs 9 crore.
• Ebitda down 12 percent at Rs 20.8 crore.
• Margin at 7.5 percent versus 10.3 percent.

Igarashi Motors Q3 (YoY)

• Revenue down 18 percent at Rs 102 crore.
• Net profit down 17 percent at Rs 15 crore.
• Ebitda down 32 percent at Rs 21 crore.
• Margin at 20.6 percent versus 25 percent.

Mcleod Russel India Q3 (YoY)

• Revenue up 21.5 percent at Rs 556 crore.
• Net profit up 181.25 percent at Rs 67.5 crore.
• Other income up more than 4 times at Rs 93 crore.
• Ebitda down 15.7 percent at Rs 51 crore.
• Margin at 9.2 percent versus 13.2 percent.

Sheela Foam Q3 (YoY)

• Revenue up 10 percent at Rs 532 crore.
• Net profit down 7 percent at Rs 39 crore.
• Ebitda down 7 percent at Rs 61 crore.
• Margin at 11.5 percent versus 13.6 percent.

ENIL Q3 (YoY)

• Revenue down 2 percent at Rs 148 crore.
• Net profit down 18.75 percent at Rs 13 crore.
• Ebitda down 10 percent at Rs 35 crore.
• Margin at 23.6 percent versus 25.8 percent.

JPMorgan on Colgate-Palmolive

• Maintained ‘Neutral’ with price target of Rs 1,110.
• December quarters operating income was ahead of estimate led by margin beat; Revenue broadly in line.
• Margins surprise positively yet again.
• Volume growth of 12 percent was below, but pricing growth was better.
• Market share yet to show improvement.
• Opportunity to participate more in the Naturals segment.

Credit Suisse on Colgate-Palmolive

• Maintained ‘Neutral’; raised price target to Rs 1,120 from Rs 1,025.
• December quarter’s volume and market share trends remain weak; Margins surprise.
• Volume growth over two years is 0, lowest in the peer set.
• Market share slide continues as challengers from naturals segment grow rapidly.
• Margins surprise positively on good cost control and lower trade promotions.

JPMorgan on Westlife Development

• Multi-quarter high same-store-sales-growth (SSSG) of 20.7 percent in previous quarter
• Menu innovation and value formats driving growth.
• Positive outlook for SSSG/margin delivery.
• Mix improvement, operating leverage and stable royalty payout to aid margin.

CLSA on Tata Motors

• Maintained ‘Sell’ with price target of Rs 395.
• Weak December quarter results pulled down by JLR.
• Indian business surprised positively.
• JLR is facing weak demand and margin pressure.
• Indian business seeing improvement.

• Tata Motors and Warburg Pincus mutually decide to call off the transaction in Tata Technologies.
• Bank of Baroda cuts overnight MCLR to 7.8 percent from 8.05 percent.
• MOIL approves share buyback proposal.
• Oil India board to consider bonus share issue on Feb. 9.
• LA Opala board approves 1:1 bonus issue.
• JBF Industries clarifies that they continue to evaluate all strategic options.
• Emami to acquire 26 percent stake in beauty care brand Brillare Science through CCPS.
• Endurance Tech to set up a plant in Karnataka to manufacture suspension product range.

For complete list of stocks to watch, click here

• Nifty February futures trade at 10,684.6 premium of 18 points versus discount of 4 points.
• February series: Nifty open interest down 4 percent, Bank Nifty open interest up 2 percent.
• India VIX ended at 16, up 5.2 percent.
• Max open interest for February series at 11,500 call strike (open interest at 62.1 lakh, down 5 percent).
• Max open interest for February series at 10,500 put (open interest at 60 lakh, up 1 percent).

• Apollo Micro Systems circuit revised to 20 percent.
• Phillips Carbon Black, Tainwala Chemicals, Madras Fertilizers circuit revised to 5 percent.

• PC Jeweller: Fidelity Investment Trust - Fidelity Emerging Markets Fund bought 40.89 lakh shares or 1 percent equity at Rs 435.93 each.
• Bombay Dyeing: Societe Generale bought 12.68 lakh shares or 0.6 percent equity at Rs 215.98 each.
• Religare Enterprises: IDBI Trusteeship services sold 19.15 lakh shares or 1.1 percent equity at an average of Rs 37.15 each.
• Bhushan Steel: EARC Trust SC 283 sold 46.79 lakh shares or 2.1 percent equity at Rs 42.21 each.

Shaily Engineering Plastics

• Ashish Kacholia bought 2.95 lakh shares or 3.5 percent equity at Rs 963.51 each
• Bengal Finance & Investment sold 2.95 lakh shares or 3.5 percent equity at Rs 963.45 each

• Dow loses more than 1,100 points
• Don’t panic. It’s no taper tantrum, JPMorgan tells EM investors
• Powell first day brings stock rout as economic durability tested
• Broadcom pressures Qualcomm to negotiate after raising bid
• Don’t reduce court to ‘fish market’, Apex Court says after angry exchanges in Loya case
• Lower subsidy provision in budget may put the burden on ONGC, Oil India
• Warburg Pincus calls off Tata Tech investment
• Monetary policy panel may hold interest rate for the third time in a row
• Elections ‘can throw up miracles’, says P Chidambaram
• Delhi, Mumbai airport fliers surge as travel growth takes off
• Bitcoin’s crash is turning into one of its biggest ever
• Indian market has not topped out yet, says Ramesh Damani
• One nation, one poll: More questions than answers

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, slumped 3.3 percent or 355 points to 10,340 as of 8:01 a.m.

Asian stocks plunged for a second day after a frantic sell-off in U.S. equity markets sent the Dow Jones Industrial Average to its biggest loss in six and a half years.

Japan’s equity benchmarks plummeted about 4 percent and stocks in Sydney and Seoul tumbled. Volatility on the Nikkei 225 Stock Average spiked the most since 2015 and trading volume was more than double the 30-day average.

Overnight, the Dow Jones Industrial Average lost more than 1,100 points as people expect faster interest rate hikes as strong economy may push inflation higher.

Here are some key events scheduled for this week:

• Monetary policy decisions are due in Australia, Russia, India, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines.
• Earnings season continues with reports from Toyota Motor Corp., BNP Paribas, BP, General Motors, Walt Disney, SoftBank, Sanofi, Philip Morris, Total, Tesla, Rio Tinto, L’Oreal and Twitter.
• Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in Frankfurt and New York.

Bonds

• The yield on 10-year Treasuries climbed about three basis points to 2.74 percent after plunging more than 13 basis points Monday.
• Australia’s 10-year bond yield declined 10 basis points to 2.83 percent

Commodities

• West Texas Intermediate crude fell for a third day, down 0.8 percent to $63.62 a barrel.
• Gold was little changed at $1,339.34 an ounce after rising 0.5 percent on Monday.