Sensex, Nifty Resume Declines After A One-Day Breather

Indian equities ended a topsy-turvy session lower, resuming declines after a one-day breather.

The S&P BSE Sensex fell 0.37 percent to end at 41,170.12 and the NSE Nifty 50 fell 0.37 percent to close at 12,080. The broader markets represented by the NSE Nifty 500 Index fell 0.12 percent.

The market breadth was tilted in favour of buyers. About 937 stocks advanced and 864 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU Bank Index’s 1 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.73 percent.

Jyothy Labs

• Stock rose as much as 6.4 percent to Rs 137.90.
• Trading volume was more than 18 times its 20-day average.

IndiaMART InterMESH

• Stock rose as much as 12.9 percent to Rs 2,862.50.
• Trading volume was almost six times its 20-day average.

Eris Lifesciences

• Stock fell as much as 3.4 percent to Rs 426.95.
• Trading volume was more than 18 times its 20-day average.

Tata Communications

• Stock rose as much as 16 percent to Rs 445.90.
• Trading volume was almost six times its 20-day average.

Mishra Dhatu Nigam

• Stock rose as much as 14.1 percent to Rs 248.50.
• Trading volume was more than four times its 20-day average.

Indiabulls Housing Finance

• Stock rose as much as 17.2 percent to Rs 357.90.
• Registrar of Companies has said in its third & probably final inspection report that all transactions between various units of Indiabulls have been at arms’ length, Bloomberg reported quoting people with knowledge of the matter.

Thomas Cook India

• Stock rose as much as 20 percent to Rs 49.50.
• Company to consider share-buyback on Feb. 26.

Muthoot Finance

• Stock rose as much as 6.9 percent to Rs 935.45.
• Fresh longs seen with high open interest of 17 percent.
• Trading volume was four times its 20-day average.

Brigade Enterprises

• Stock rose as much as 11.3 percent to Rs 254.90.
• Biggest gainer in the NSE Nifty Realty Index.

• Hinduja Group, along with private equity firm Cerberus Capital Management, is preparing a bid to buy a stake in Yes Bank
• Representatives of Hinduja group & Cerberus met RBI officials earlier this month regarding the bid

Bloomberg Reports Citing People Familiar With The Matter

Stocks came under pressure in Asia, and U.S. and European equity futures fluctuated after Japan reported two deaths from the coronavirus and cases in South Korea jumped, spurring concerns about the spread of the disease outside China.

• Futures on the S&P 500 Index were down less than 0.1 percent as of 6:58 a.m. in London.
• Japan’s Topix index rose 0.2 percent.
• Hong Kong’s Hang Seng declined 0.3 percent.
• Shanghai Composite rose 1.8 percent.
• South Korea’s Kospi index fell 0.7 percent.
• Australia’s S&P/ASX 200 Index rose 0.3 percent.
• Euro Stoxx 50 futures fell 0.1 percent.

Get your daily fix of global markets here.
Source: Bloomberg

Shares of Escorts fell as much as 6.3 percent, the most since Dec. 3, 2019, to Rs 852.40.

Of the shares traded, 35 percent were at the ask price and 44 percent were at the bid, according to Bloomberg data. The scrip traded at 18 times its estimated earnings per share for the coming year.

Shares of Max Financial Services extended gains for the fourth consecutive trading session and rose as much as 15.5 percent, the most since June 2016, to Rs 597.05.

“Axis Bank Ltd is set to acquire more than 20 percent stake in Max Life Insurance Ltd., Economic Times reported, quoting unnamed officials. “Axis, which currently holds a little over 2 percent in Max Life, is expected to invest more than 20 billion rupees into the insurer through a fresh issue of shares,” the report added.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 1.6 percent advance. On the flipside, the NSE Nifty FMCG Index was the top sectoral loser, down 0.1 percent.

SBI Cards and Payment Services Ltd. plans to open the books to all investors for its Indian initial public offering on March 2, Bloomberg reported quoting the terms of the deal it obtained.

• The bid/offer period for all investors closes on March 5
• The bid/offer period for QIBs closes on March 4
• The bid/offer period for the anchor tranche opens and closes on Feb. 28
• The IPO will comprise of 5 billion rupees ($70 million) of new shares and 130.5 million secondary shares from selling shareholders, including State bank of India and Carlyle.

Source: Terms of the deal obtained by Bloomberg

Shares of Indiabulls Housing Finance rose as much as 17.2 percent to Rs 357.90.

Registrar of Companies has said in its third & probably final inspection report that all transactions between various units of Indiabulls have been at arms’ length, Bloomberg reported quoting people with knowledge of the matter.

“Corporate affairs ministry hasn’t found any significant financial irregularities in the operations of Indiabulls,” Bloomberg reported.

• Coal India: About 11 lakh shares of the company changed hands in a large trade.
• Jyothy Labs: About 15 lakh shares of the company changed hands in a large trade.
• NTPC: About 19 lakh shares of the company changed hands in a large trade.
• ONGC: About 18.3 lakh shares of the company changed hands in a large trade.
• Power Grid: About 11.6 lakh shares of the company changed hands in a large trade.

Buyers and sellers were not known immediately.
Source: Bloomberg

Nifty’s 12,100 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Feb. 20, rose 10.69 percent to Rs 36.75. About 10.69 lakh shares were added to the open interest which stood at over 26.19 lakh shares.

Indian equities fluctuated between gains and losses in the early trade.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 41,313 and 12,125 respectively. The broader markets represented by the NSE Nifty 500 Index rose 0.14 percent.

Shares of Bandhan Bank swung from a gain of as much as 1.5 percent to fall as much as 1.2 percent to Rs 410.10.

About 16.7 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

The scrip traded at 19 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Dewan Housing Finance Corporation hit their upper circuit of 5 percent at Rs 11.25 after announcing third quarter results.

Key Earnings Highlights (Q3)

• Total Costs 26B Rupees
• Deferred tax gain Rs 1,100 crore.
• Loss before tax at Rs 168 crore.
• Loss of Rs 6,090 crore during 9 months to Dec. 31 has substantially eroded net worth of the company.

Source: Bloomberg

Shares of Thomas Cook India rose as much as 15.5 percent, the most since Dec. 5, 2019, to Rs 47.65.

The company plans to consider repurchasing of shares on Feb. 26.

Trading volume was more than 40 times its 20-day average, Bloomberg data showed. Of the shares traded, 25 percent were at the ask price and 72 percent were at the bid.

Shares of GAIL India halted their two-day gaining streak. The stock fell as much as 1.1 percent to Rs 118.50.

The company clarified that it had received provisional assessment orders towards AGR dues worth Rs 1.83 lakh crore. The company said that telecom dues matter under examination and the amount assessed in the telecom dues order is legally not tenable. The company has filed an application with Supreme Court on Jan. 23 for seeking clarification of judgment passed.

The scrip declined 25 percent in the past 12 months compared to a 17 percent gain in the Sensex.

Shares of IRCTC extended gains for the third consecutive trading session. The stock rose as much as 5.6 percent to hit an all-time high at Rs 1,935.15.

The Relative Strength Index was at 83, indicating that the stock may be overbought, Bloomberg data showed. The scrip advanced 16 percent in the past five days and advanced 84 percent in the past 30 days.

Indian equities opened lower, resuming declines after a one-day breather.

The S&P BSE Sensex fell 0.1 percent to 41,291 and the NSE Nifty 50 fell 01 percent to 12,113. The broader markets represented by the NSE Nifty 500 Index fell 0.05 percent,

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 0.6 percent fall. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 0.8 percent.

Index Futures

• Nifty February futures closed at 12,142.7, premium of 16.8 points
• Nifty February futures open interest down 3.5 percent, sheds 4.3 lakh shares in open interest
• Nifty Bank February futures closed at 30,856.4, premium of 18 points
• Nifty Bank futures open interest down 4 percent, sheds 47,500 shares in open interest

Nifty Weekly Expiry: Feb 20

• Max open interest on call side at 12,200 (24.9 lakh shares)
• Max open interest on put side at 12,100 (24.5 lakh shares)
• Open interest addition seen at 12,100P (+19.5 lakh shares), 12,050P (+11.6 lakh shares), 12,000P (+10.8 lakh shares)
• Open interest shedding was seen at 12000C (-11.2 lakh shares)

Nifty Monthly Expiry: Feb 27

• Max open interest on call side at 12,300 (24 lakh shares)
• Max open interest on put side at 12,000 (42 lakh shares)

Stocks In F&O Ban

• NCC
• Yes Bank