Sensex, Nifty At Two-Week Low; PSU Bank Index Slumps Over 2%

Indian equity benchmarks fell for second day to hit their lowest level in two weeks as metal, PSU banking and capital goods shares came under heavy selling pressure.

The S&P BSE Sensex fell 0.69 percent or 236 points to 33,774.66 and the NSE Nifty 50 Index tumbled 0.71 percent or 74 points to 10,378.40.

The losses were broad-based as the S&P BSE MidCap and S&P BSE SmallCap indices fell around one percent.

All sector gauges compiled by the National Stock Exchange ended lower led by the Nifty PSU Bank Index's 2.46 percent drop.

• Kwality: The dairy products maker rose 4 percent on conversion of warrants and upgrade by KR Choksey Securities.
• Religare Enterprises: The financial service provider rose as much as 5 percent after it revamped its top management following exit of founders.
• KPR Mills: The apparel maker gained nearly 8 percent as its board will consider buyback of shares on Feb. 22.
• RPG Lifescienes: The drug maker rose nearly 6 percent after 24.5 lakh Shares Change Hands in a block.

Nifty Bank index came off day's low led by buying in Kotak Mahindra Bank, Axis Bank and HDFC Bank. Nifty Bank index was down 0.65 percent at 25,000 level.

Vipul: The Delhi-based real estate developer rose 2 percent to Rs 65.50. As many as 18.57 lakh shares changed hands compared with an average of 2,733 shares traded daily in the past two weeks.

RPG Life Sciences: The drug maker rose 5 percent to Rs 480.40. As many as 25 lakh shares changed hands compared with an average 5,500 shares traded daily in the past two weeks.

Laxmi Machine Works: The industrial machinery maker rose 0.16 percent to Rs 5.870. As many as 4.27 lakh shares changed hands compared with an average of 1,027 shares traded daily in the past two weeks.

KEC International: The heavy electrical equipment maker fell 3.75 percent to Rs 377. As many as 29 lakh shares changed hands compared with 1.38 lakh shares traded daily in the past two weeks.

Shares of Mumbai-based e-governance service provider fell 5 percent to Rs 233 after 19.9 million shares (1.9 percent equity) changed hands in two block deals.

• Indian equity benchmarks were trading near intraday low levels dragged down by State Bank of India, ICICI Bank, Tata Steel and ITC.
• The S&P BSE Sensex dropped 406 points or 1.2 percent to 33,604 and the NSE Nifty 50 Index fell 1.2 percent or 129 points to 10,323.
• All sector gauges compiled by the National Stock Exchange were trading lower dragged by the Nifty PSU Bank Index's 5.6 percent fall.
• The mid-cap and small-cap shares were also facing selling pressure as the S&P BSE MidCap Index 1.5 percent and S&P BSE SmallCap Index declined 2 percent.

Shares of the Kolkata-based state-run lender fell as much as 11 percent to Rs 25.2 after it disclosed exposure of $411.82 million through SWIFT messages from Punjab National Bank.

The overall market breadth was extremely negative as over 1,800 shares were declining while 700 were advancing on the BSE.

• Indian equity benchmarks continued to struggle dragged down by losses in Larsen & Toubro, State Bank of India, HDFC Bank and IndusInd Bank.
• The S&P BSE Sensex fell 0.6 percent or 200 points to 33,811 and the NSE Nifty 50 Index declined 0.6 percent or 63 points to 10,389.
• All sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty PSU Bank Index's 4.6 percent drop.
• The selling pressure was broad-based as the S&P BSE MidCap Index fell 0.9 percent and the S&PP BSE SmallCap Index tumbled 1 percent.

Shares of Gitanjali Gems were locked in 10 percent lower circuit at Rs 33.80 after its VP- compliance and company secretary and chief financial officer resigned from the company following company's involvement in Rs 11,000 crore Punjab National Bank fraud.

Shares of the Gurugram-based airline rose as much as 5.33 percent to Rs 149 after it carried 1.14 crore domestic passengers in Jan. 2018, up 20 percent versus 95.79 lakh passengers (YoY).

The airline clocked 90 percent passenger load factor in January.

Shares of the government-owned banks were trading with a negative bias. The gauge of PSU banking shares - Nifty PSU Bank Index slumped as much as 3.2 percent dragged down by United Bank of India, Allahabad Bank and Syndicate Bank.

Shares of the Delhi-based state-run lender fell as much as 5.89 percent to Rs 118.15, extending its decline to fourth trading session after it informed exchanges of fraudulent transactions worth Rs 11,300 crore at one of its branches in Mumbai.

Shares of the Delhi-based financial service provider rose as much as 5 percent to Rs 63.20 after it revamped its top management following founders' exit from the board of directors.

Religare appointed Ashok Mehta, an independent director, as the interim CEO, while also naming Vikram Talwar and a former central bank official, P Vijaya Bhaskar, as independent directors. Siddharth Mehta, founder of Bay Capital Partners, will be a non-executive, non-independent director, it said in an exchange filing late Saturday.

Shares of Tata Steel fell as much as much as 5 percent while Bhushan Steel surged 20 percent after Tata Steel emerged as the highest bidder for debt-ridden Bhushan Steel and Bhushan Power and Steel, two unidentified bankers told BloombergQuint.

This is the result of independent bidding processes conducted for both Bhushan Steel and Bhushan Power & Steel under the Insolvency and Bankruptcy Code. The bankers quoted above stated that Tata Steel has offered to pay up to Rs 45,000 crore for Bhushan Steel and Rs 17,000 crore for Bhushan Power.

JSW Steel Ltd., the only other bidder for both companies is said to have put up Rs 30,000 crore for Bhushan Steel and Rs 11,000 crore for Bhushan Power & Steel.

Shares of GVK Power and Infrastructure rose as much as 4.76 percent to Rs 18.70 after the Prime Minister Narendra Modi laid foundation stone for Navi Mumbai International Airport site in Panvel, nearly 21 years after it was mooted. The first phase the Rs 16,700-crore project is expected to be completed by 2019.

• Domestic liquidity into financials will continue
• May see buying opportunities in selective stocks
• In valuations terms, India may see some downgrades due to rising uncertainties
• Some recognition of uncertainties in India will emerge
• Will look into select IT companies in the sector
• Domestic market has been good for the pharma companies for past many years
• Pharma sector may see resurgence of buying interest from foreign companies
• Monsoon uncertainty later will create some jitters for markets
• Comfortable with investments in IT companies currently
• Momentum of earnings season will continue into next 2 quarters
• Multiple run ups in certain stocks will have to be corrected post run up

• KEC International has 28 lakh shares change hands in a block.

Buyers and seller were not immediately known

Source: Bloomberg

Indian equity benchmakrks edged lower dragged down by Tata Steel, Larsen & Toubro and HDFC Bank.

The S& BSE Sensex fell as much as 0.38 percent to 33,880 and the NSE Nifty 50 Index declined 0.34 percent to 10,404.

Twelve out of 19 sector gauges compiled by the BSE were trading lower led by the S&P BSE Capital Goods Index's 0.56 percent fall. On the other hand, S&P BSE Consumer Durables Index was the top sectoral gainer, up 0.28 percent.

Nomura on Glenmark Pharmaceuticals

• Maintained ‘Buy’; cut price target to Rs 825 from Rs 880.
• Disappointed by delay in approval of key ANDAs and out-licensing deal.
• Currently opportunities remain intact, but carries the risk of competition.
• Cut earnings estimate by 4.3 percent, 17 percent and 23.2 percent for the current and the ext two financial years respectively.
• Early approval would represent upside to earnings estimates.
• Current valuation supported by strong domestic formulation business.

Motilal Oswal on MCX

• Maintained ‘Buy’ with price target of Rs 1,100; implying a potential upside of 48 percent from the last regular trade.
• Encouraging pick-up in 2018 so far.
• Not much to worry about on unified licenses.
• Regulatory action striding well.
• Stable financial expectations.
• Bullion volumes remain low over during the first three quarters of the current fiscal.

• Religare Enterprises to raise up to Rs 1,200 crore via combination of equity and debt.
• Tata Steel emerges as the top bidder for Bhushan Steel.
• Punjab National Bank looking to monetise real estate assets including office space in Delhi worth over Rs 5,000 crore.
• Infosys to divest entire stake in Onmobile Systems for $2.5 million.
• Moser Baer examining restarting of operatins at Noida plant.
• Reliance unit to acquire 65 percent stake in Indian Film Combine for Rs 1,105 crore.
• Manipal Tech withdraws bankruptcy plea against Reliance Communications.
• SBI to raise Rs 8,800 crore via preferential issue to government.
• BPCL clarifies didn’t have any talks regarding Nagarjuna Oil refinery.
• PG Electroplast says PU paint shop goes into commercial production.
• PowerGrid emerges as lowest bidder for Rs 1,000 crore transmission project (PTI).
• DGCA: Indigo January market share at 39.7 percent versus 39.4 percent (MoM) ,Jet at 16.6 percent versus 16.9 percent (MoM), Spice Jet at 12.6 percent versus 12.7 percent (MoM).
• ARSS Infra wins two work orders worth Rs 121 crore.
• India withdraws Unitech management-takeover case from NCLT.
• PVR says ‘amicably resolved’ dispute with Elan group over development of multiplexes in Gurugram.
• U.S. FDA completes inspection of Natco Pharma’s Mekaguda API unit with zero observation.
• Government plans to sell Pawan Hans stake grounded for now (Business Standard).
• IndusInd Bank raises marginal cost-based lending rates by 15 basis points (Cogencis).

• Nifty February futures closed trade at 10,453 premium of 1.3 points versus 5.7 points.
• February series-Nifty open interest unchanged, Bank Nifty open interest up 5 percent
• India VIX ended at 16.3, up 0.3 percent.
• Max open interest for February series at 10,600 call strike, open interest at 52.3 lakh, open interest up 47 percent.
• Max open interest for February series at 10,500 Put, open interest at 55.6 lakh, down 13 percent.

• MT Educare: India Max Investment Fund sold 3.50 lakh shares or 0.9 percent equity at Rs 69.86 each.

Fortis Healthcare

• UBS Principal Capital Asia bought 38.18 lakh shares or 0.7 percent equity at Rs 134.91 each.
• ECL Finance sold 1.33 crore shares or 2.6 percent equity at an average of Rs 133.13 each.
• IDBI Trusteeship sold 77.78 lakh shares or 1.5 percent equity at Rs 134.9 each.

Sintercom India

• KIFS International LLP bought 3.88 lakh shares at Rs 76.85 each.
• IA Diversified Fund sold 2.20 lakh shares at Rs 76.36 each.

• Electric car goal in India seen creating cyber-security risks
• Rotomac owner flees India after taking Rs 800 crore loans
• China says it may hit back if U.S. imposes tariffs on steel
• FPIs’ net outflow from equities hits $1 billion so far in February
• PM Modi lays foundation stone of Navi Mumbai airport
• Eight public sector firms likely to hit capital markets next financial year
• NTPC eyes state utilities’ stressed assets
• ONGC Videsh to bid for Iran’s south Azadegan oilfield
• CBI arrests two PNB officials, authorised signatory of Nirav Modi company
• Forget Bitcoin, this startup wants your genes on the blockchain
• Was India’s leap in ease of doing business aided by a changed methodology?
• Dalmia Bharat-led consortium highest bidder for Binani

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent or 32 points to 10,495 as of 7:30 a.m.

Japanese shares rose Monday helped by a weaker yen and after U.S. equities capped their best week in five years. The dollar steadied and oil consolidated above $60 a barrel.

Asian equities are building on their best week since September 2016, with stocks in South Korea also gaining, even as markets in Hong Kong and China are closed for the Lunar New Year holiday and in the U.S. for Presidents’ Day.

Here are some key events scheduled for this week:

• The Reserve Bank of Australia releases minutes of its February meeting Tuesday.
• The Federal Reserve Wednesday will release minutes of its Jan. 30-31 meeting, Janet Yellen’s last as chair, where officials kept the rate unchanged.
• Bank of England Governor Mark Carney addresses the Parliament’s Treasury Committee on the Feb. 8 policy decision and forecasts. A slew of U.K. economic data is due including fourth-quarter GDP and employment figures.
• Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic. Cleveland Fed President Loretta Mester is among speakers at the U.S. Monetary Policy Forum in New York City.
• Japan updates on CPI on Friday.
• Companies announcing earnings this week include: Walmart, Home Depot, HSBC, BHP Billiton, Glencore, Barclays.

Bonds

• The yield on 10-year Treasuries fell four basis points to 2.87 percent. Treasuries are not trading Monday because of the holiday in the U.S.
• Australia’s 10-year bond yield lost four basis points to 2.89 percent.

Commodities

• West Texas Intermediate crude rose 0.2 percent to $61.81 a barrel. It posted its first weekly increase since last month.
• Gold added 0.2 percent to $1,349.21 an ounce.