Sensex, Nifty Snap A Three-Session Winning Streak On Virus Concerns
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