Sensex, Nifty Snap A Three-Session Winning Streak On Virus Concerns
Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.
KEY HIGHLIGHTS
Closing Bell
Indian equity benchmarks and the rupee turned worst performers in Asia as a worsening coronavirus crisis sparked investor concerns over a nascent economic recovery and corporate profits.
The S&P BSE Sensex Index slid 1.8%, snapping a three-day winning streak. Financials were the biggest drag on the gauge, which saw 28 of its 30 stocks decline. The Indian rupee fell by the most in almost two weeks.
The NSE Nifty 50 Index also dropped 1.8%, making India’s key stock indices the worst performers in Asia on Monday. All but one of 19 sub-sector indexes compiled by BSE Ltd. declined, led by a measure of realty stocks. A gauge of healthcare-related shares managed to eke out a gain of 0.4%
Broader markets also declined in line with their larger peers. The Nifty Midcap index fell 1.9% while the Smallcap index declined 1.6%.
The market breadth was skewed firmly in favour of the bears. Around 2,194 stocks declined, 776 advanced while 202 remained unchanged.
The economic impact of the current rise in Covid cases will be significant in the short-term as it will lead to lockdowns across many states in the country. However, the demand is never fully destroyed, and will come back. For many industries like travel, tourism, restaurants and hotels the impact will be significant. IT, pharma, metals, telecom and consumer staples will be less impacted and provide support. Discretionary consumption will be the most impacted sector and will see challenges.Naveen Kulkarni, Chief Investment Officer, Axis Securities
Bajaj Consumer Q4 Net Profit Beats Estimates
Bajaj Consumer reported net income for the fourth quarter that beat the average analyst estimate.
- Net income Rs 53.9 crore versus Rs 24.52 crore YoY. Bloomberg estimate Rs 52.24 crore
- Revenue Rs 246 crore, up 41% YoY, Bloomberg estimate Rs 240 crore
- Total costs Rs 187 crore, up 21% YoY
- Dividend Rs 4 per share
Cipla, Sun Pharma, Wipro in Focus: Options Check
- Cipla options volume 2.1x the 20-day average, with 27,483 calls changing hands vs 5,114 puts
- Stock up 1.1%, volume 2x the 20-day average for this time of day
- Wipro options volume 1.9x the average, with 30,254 calls vs 15,213 puts
- Stock down 0.3%, volume 1.5x the average
- Sun Pharma options volume 1.6x the average, with 24,399 calls vs 7,451 puts
- Stock down 0.6%, volume 1.2x the average
Jubilant Pharmova Jumps After It Develops Oral Form Of Remdesivir
Jubilant Pharma Ltd. successfully completed safety studies in animals and healthy human volunteers in India using an oral formulation of Remdesivir, according to a statement on exchanges.
Jubilant has sought authorisation for additional studies from the Drug Controller General of India as it hopes to provide an affordable, easy-to-administer and potentially effective treatment option for Covid-19 patients
The proposed oral treatment is expected to be for 5 days, a duration similar to the injectable dosage form, the drugmaker said.
Says formulation is likely to “ease the capacity constraint that injectable formulation faces and ensure wider and timely availability for the patients of Covid-19”
- Parent Jubilant Pharmova Ltd.’s shares jumped after the statement, rising as much as 11.3% intraday, the most since Feb. 3; volume 5.5x 3-month daily average
Indian Defaults Spark Rules That Drag Bond Sales To 13-Year Low
Rising defaults have prompted India to tighten oversight of corporate bond sales, causing issuance to slump in a blow to a long-sought goal of expanding the market.
Offerings of rupee notes have fallen to Rs 3,440 crore ($463 million) this month, the slowest start to a financial year since 2008. That’s due in part to rules that took effect April 1 strengthening the role of trustees for secured bonds backed by assets. Such offerings have made up about 60% of India’s total domestic issuance in the last 10 years.
Read the full story here
Rupee Turns Asia’s Worst Performer On Virus Surge
Indian rupee slides with stocks as rising virus cases raise doubts about the pace of economic recovery. Bonds extended Friday’s gains after the central bank cancelled the benchmark 10-year-bond auction as traders probably demanded higher yields.
- USD/INR up 0.7% to 74.89, reversing nearly all of Friday’s 0.8% drop
- 10-year yields fell 1 basis points to 6.08%, adding to 4 basis points fall on Friday
Concerns are growing over the impact that lockdown restrictions will have on economic growth and thereby keeping the rupee under pressure.Amit Pabari, MD, CR Forex
Macrotech Developers Off To A Muted Debut
Macrotech Developers Ltd., formerly known as Lodha Developers, started trading at Rs 433.85 in its trading debut in Mumbai, after selling shares at Rs 486 rupees in an IPO.
- Open: Rs 439 (down 9.67%)
- Low: Rs 421 (down 13.34%)
- Current: Rs 466 (down 4.12%)
Banks Lead The Slump
Pharma Stocks Fightback
HDFC Bank Slips As Analysts Say Growth Lags
HDFC Bank’s steady growth in profit and stable asset quality continue to reflect the resilience of its book, said brokerages after the lender’s fourth-quarter earnings. But the Reserve Bank of India’s curbs due to technology outages remain an overhang.
Growth is a challenge, especially with the Covid resurgence, said Kotak Institutional. This remains a focus area as retail is a highly profitable business for the bank. This would impact revenue growth.
Limited visibility on the lifting of the RBI ban can be a near-term constraint on multiples.CLSA report
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Opening Bell: Sensex, Nifty Drop Over 2.5% On Weak Cues
Indian equity benchmarks opened with sharp cuts as a combination of record jump in Covid cases and a mixed start to fourth-quarter earnings season kept investors on the tenterhooks.
The S&P BSE Sensex dropped as much as 2.8% in early trade to 47,468, while the NSE Nifty shed 2.8% to 14,203. While all stocks on the Sensex declined, Wipro and Cipla were the lone gainers on the Nifty index. Both indices capped two consecutive weekly declines on Friday.
All 19 sector sub-indexes compiled by BSE slipped, led by a gauge of lenders. Around 1,572 stocks declined on the NSE while 209 advanced.
Good morning!
Asian shares fluctuated and U.S. futures were a touch weaker Monday with investors weighing the recovery in global growth and corporate earnings against the latest appalling tallies of Covid-19 infections.
Benchmarks swung from red to green in Japan, Hong Kong and China. U.S. futures pared early losses, following a fourth straight weekly gain for the S&P 500 Index.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, down 1.31% to 14,450, as of 8 a.m. (Click here for more global markets update)
Indian stocks logged their second straight week of declines on Friday as the South Asian country continues to witness a sharp surge in coronavirus cases, posing a risk to its economic recovery.
The fourth-quarter earnings season was off to a shaky start. HDFC Bank, India's largest private lender, missed analyst estimates as it set aside more money to build buffers against bad debt.
Key earnings to watch today: ACC, Bajaj Consumer, Crisil, ICICI Prudential
Meanwhile, Macrotech Developers will make its trade debut after the IPO got subscribed 1.36 times. The Mumbai-based realty company’s Rs 2,500- crore issue had a price band of Rs 483-486 per share.