Investors Lose More Than Rs 3 Lakh Crore As Sensex, Nifty Log Second-Worst Single-Day Fall Of 2020

Indian equity investors lost around Rs 3 lakh crore of wealth today, according to data available with Bombay Stock Exchange.

That came after India’s equities—S&P BSE Sensex and the NSE Nifty 50—clocked its worst fall since the Budget day. The 30-share index closed 1.96 percent or 807 points lower at 40,363.23.

The 50-share gauge closed 2.08 percent lower to end at 11,829.40. The broader markets represented by the NSE Nifty 500 Index ended 2.01 percent lower.

The market breadth was tilted in favour of sellers. About 1,293 stocks declined and 524 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by the NSE ended lower, led by the NSE Nifty Metal Index’s 5.5 percent fall.

Tube Investments

• Stock rose as much as 11.1 percent to Rs 562.
• Trading volume was eight times its 20-day average.

Grindwell Norton

• Stock rose as much as 2.3 percent to Rs 629.
• Trading volume was almost 10 times its 20-day average.

Jyothy Labs

• Stock fell as much as 3.1 percent to Rd 130.30.
• Trading volume was more than four times its 20-day average.

GMR Infra

• Stock rose as much as 12.1 percent to Rs 26.50.
• Trading volume was almost seven times its 20-day average.

Shares of Future Consumer fell for the sixth consecutive trading session. The stock fell as much as 10.6 percent, the most since July 2019, to Rs 18.50, the lowest since November 2016.

Trading volume was almost four times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be oversold.

All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 4.8 percent fall.

Indian equities extended declines to trade at day’s low.

The S&P BSE Sensex fell as much as 1.68 percent to 40,477.13 and the NSE Nifty 50 fell as much as 1.57 percent to 11,891.65. The broader markets represented by the NSE Nifty 500 Index fell as much as 1.4 percent.

European stocks and U.S. equity futures tumbled on Monday and havens surged as the increase in coronavirus cases outside of China roiled risk assets.

• The Stoxx Europe 600 Index sank 2.3 percent as of 8:06 a.m. London time.
• Futures on the S&P 500 Index fell 1.9 percent.
• Nasdaq 100 Index futures fell 2.3 percent.
• The MSCI Asia Pacific Index decreased 1.3 percent.

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Source: Bloomberg

Shares of Jindal Steel & Power halted their two-day gaining streak. The stock fell as much as 6.4 percent, the most since Dec. 5, 2019, to Rs 181.05.

The scrip advanced 15 percent in the past 12 months compared to a 14 percent rally in the Sensex.

Shares of Adani Gas halted their two-day gaining streak. The stock fell as much as 7.8 percent, the most in a month, to Rs 170.40.

The company said that Petroleum and Natural Gas Regulatory Board has approved its deal with Total.

Trading volume was almost 10 times its 20-day average, Bloomberg data showed.

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Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 3.2 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.48 percent.

Shares of GMR Infrastructure extended gains for the third consecutive trading session. The stock rose as much as 11.4 percent, the most in nearly a year, to Rs 26.35, the highest since September 2014.

Aeroports de Paris agrees to buy a 49 percent stake in India’s GMR Airports for Rs 10,780 crore. The purchase to happen in two steps starting 24.99 percent in the coming days. The second step for 24.01 percent to require approvals from regulators includes RBI. The second step is set to be concluded in the coming months.

Trading volume was more than 15 times its 20-day average, Bloomberg data showed. The stock advanced 58 percent in the past 12 months compared to 14 percent rally in the Sensex.

Nifty’s 12,000 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. 27, fell 63.1 percent to Rs 43.55. About 23.44 lakh shares were added to the open interest which stood at over 37.48 lakh shares.

Indian equities extended declines for the second consecutive trading session, tracking negative Asian peers as virus case rise heightened concerns.

The S&P BSE Sensex fell as much as 1.2 percent to 40,673 and the NSE Nifty 50 fell as much as 1.3 percent to 11,923.85. The broader markets represented by the NSE Nifty 500 Index fell as much as 1.2 percent.

Shares of Tube Investments of India extended gains for the third consecutive trading session. The stock rose as much as 9.8 percent to hit an all-time high at Rs 555.35.

Trading volume was more than three times its 20-day average, Bloomberg data showed. Of the shares traded, 40 percent were at the ask price and 44 percent were at the bid.

Shares of Ambuja Cement fluctuated between gains and losses to trade 0.34 percent higher at Rs 206 after announcing December quarter results.

Key Earnings Highlights (Q4CY19, YoY)

• Revenue rose 9.5 percent to Rs 3,135.9 crore
• Net profit fell 15.4 percent to Rs 454.9 crore
• Ebitda rose 35.6 percent to Rs 547.5 crore
• Margin stood at 17.5 percent versus 14.1 percent
• Operating Ebitda rose due to strong top-line and a decline in power & fuel and logistics costs

Shares of Max Financial Services extended gains for the fifth consecutive trading session. The stock rose as much as 2.3 percent to Rs 578.

Axis Bank, Max Financial Services and its subsidiary Max Life Insurance sign confidentiality and exclusivity arrangement to explore the possibility of Axis Bank to enter into a long-term strategic partnership with Max Life.

Trading volume was three times its 20-day average, Bloomberg data showed. Of the shares traded, 40 percent were at the ask price and 36 percent were at the bid.

Shares of Aurobindo Pharma fell as much as 18.4 percent to Rs 489.40.

The U.S. FDA revoked voluntary action Initiated Status for Unit IV. It says Unit IV is still open and under review, U.S. FDA only had issued a ‘Voluntary Action Initiated’ status on Feb. 18.

The stock returned 17 percent in the past five days and 20 percent in the past 30 days. The scrip traded at 13 times its estimated earnings per share for the coming year, Bloomberg data showed.

Indian equities extended declines for the second consecutive trading session.

The S&P BSE Sensex fell 1.07 percent to 40,731 and the NSE Nifty 50 fell 1.17 percent to 11,937. The broader markets represented by the NSE Nifty 500 Index fell 1.16 percent.

The market breadth was tilted in favour of sellers. About 559 stocks declined and 319 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 2.9 percent fall.

Futures

• Nifty February futures closed at 12,079, discount of 1.8 points
• Nifty February futures open interest fell 2.4 percent, sheds 2.7 lakh shares in open interest
• Nifty Bank February futures closed at 30,938.7, discount of 4 points
• Nifty Bank futures open interest fell 1.5 percent, shed 15,500 shares in open interest

Options

• Nifty PCR at 1.39 versus 1.38 (across all series)

Nifty Monthly Expiry: Feb 27

• Max open interest on call side at 12,200 (34.4 lakh shares)
• Max open interest on put side at 12,000 (39.9 lakh shares)
• Open interest addition seen in 12,200C (+13.2 lakh shares), 12,100C (+8.5 lakh shares)

Stocks In F&O Ban

• Yes Bank
• NCC

• Uniply Industries, Shriram EPC to move out of ASM Framework
• Sadbhav Infrastructure Project, AksharChem India, Den Networks, Hathway Cable & Datacom to move into short term ASM Framework
• GTL, Lakshmi Vilas Bank, Swan Energy to move out of short term ASM Framework
• MSTC price band revised to 10 percent
• Sanwaria Consumer price band revised to 5 percent

• Nath Bio-Genes: Promoter Akash Farms acquired 2 lakh shares (1.06 percent) at Rs 369.99 each
• Dixon Tech: Promoter Sunil Vachani sold 1.85 lakh shares (1.6 percent) at Rs 4,308.82
• Max Financial Services: WF Asian Smaller Companies Fund acquired 20 lakh shares (0.74 percent) at Rs 564.34 each

Eris Lifesciences

• Emerald Investments acquired 9.39 lakh shares (0.68 percent) at Rs 430 each
• Goldman Sachs Trust sold 9.35 lakh shares (0.68 percent) at Rs 430.03 each

Wheels India

• IDFC MF acquired 8 lakh shares (3.33 percent) at Rs 557 each
• Titan Europe sold 9.16 lakh shares (3.81 percent) at Rs 557 each

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.34 percent to 71.90 against the greenback.

Indian equities are set for a tepid start.

The S&P BSE Sensex traded little changed at 41,167 during the pre-market trade and the NSE Nifty 50 fell 0.3 percent to 12,045.

Global Equity Index Series

• Large Cap Exclusion: Aurobindo Pharma
• Mid Cap Inclusion: Aurobindo Pharma, Ashok Leyland, Oracle Financial Services Software, Bata India, Jubilant FoodWorks, Nippon Life India Asset Management, Vodafone Idea, Indiabulls Housing Finance, Yes Bank
• Mid Cap Exclusion: Adani Transmission, Wockhardt

FTSE All-World

• Inclusion: Bata India, Jubilant FoodWorks, Nippon Life India Asset Management
• Exclusion: Adani Transmission, Wockhardt

FTSE ALL-CAP

• Inclusion: ICICI Securities, Tube Investments of India, J K Cement
• Exclusion: Adani Transmission, GE T&D, PC Jeweller, Reliance Infra, Jain Irrigation Systems, Reliance Capital, DHFL, HDIL

Earnings To Watch

• Linde India

Earnings Reaction To Watch

Ambuja Cement (Q4CY19, YoY)

• Revenue rose 9.5 percent to Rs 3,135.9 crore
• Net profit fell 15.4 percent to Rs 454.9 crore
• Ebitda rose 35.6 percent to Rs 547.5 crore
• Margin stood at 17.5 percent versus 14.1 percent
• Operating Ebitda rose due to strong top-line and a decline in power & fuel and logistics costs

• Tech companies were particularly hard hit, sending the Nasdaq 100 down almost 2 percent. The S&P 500 Index posted its first weekly decline since January.
• Oil fell as the coronavirus outbreak accelerated beyond China, intensifying concerns about the infection’s economic fallout.

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• Axis Bank, Max Financial Services and its subsidiary Max Life Insurance sign confidentiality and exclusivity arrangement to explore the possibility of Axis Bank to enter into a long-term strategic partnership with Max Life.
• Bharti Airtel: Chairman Sunil Mittal said that the company is committed to complying with Supreme Court’s ruling on telecom dues and the company will pay the dues before March 17 deadline, according to Bloomberg report.
• Dr. Reddy’s gets EIR from the U.S. FDA for Duvvada formulations plant at Vizag, indicating closure of the audit. The facility has been classified at Voluntary Action Indicated.
• AstraZeneca Pharma has launched QTERN tablets in India for the treatment of diabetes.
• Greenply Industries: CARE Ratings has placed the ratings assigned to the company on credit watch with negative implications for bank facilities worth Rs 378 crore. The rating action follows the approval by the board of directors to extend the corporate guarantee to a foreign loan not exceeding Euro 12.5 million provided to the erstwhile MDF division of the company which has been shifted by way of demerger to Greenpanel industries.
• IIFL Finance: Board of company’s material arm Infoline Finance completed allotment of $400 million senior secured notes.
• Dhanlaxmi Bank: RBI approved the appointment of Sunil Gurbaxani as MD & CEO of the Bank for three years.
• Dixon Technologies promoter Sunil Vachani decreased his stake from 36.27 percent to 34.67 percent in the company on Feb. 20.
• ACC: Neeraj Akhoury resigned as MD and CEO with effect from February 20. The company said he will continue to be on the Board as non-executive independent director.
• Reliance Home Finance defaulted in payment of term loan worth Rs 36 crore which was due on Jan. 18. Company has a total financial indebtedness of Rs 11955 crore, out of which Rs 3,890 crore is outstanding borrowings from Banks/Financial Institutions, as on Jan. 31.
• Aurobindo Pharma: U.S. FDA revokes voluntary action Initiated Status for Unit IV. It says Unit IV is still open and under review, U.S. FDA only had issued a ‘Voluntary Action Initiated’ status on Feb. 18.
• GMR Infra: Aeroports de Paris agrees to buy a 49 percent stake in India’s GMR Airports for Rs 10,780 crore. The purchase to happen in two steps starting 24.99 percent in the coming days. The second step for 24.01 percent to require approvals from regulators includes RBI. The second step is set to be concluded in the coming months.
• Bharti Infratel receives FDI Approval from DOT for the merger of Indus Towers on 21st Feb. 2020. The Board of Directors of the Company will meet on Monday i.e. Feb. 24, 2020, to take stock and decide the future course of action.
• Dilip Buildcon executed an EPC agreement with Airport Authority of India for the project “Construction of new greenfield airport at Hirasar, Rajkot, Gujarat”
• Strides Pharma: The scheme for Amalgamation amongst Arrow Remedies Pvt Ltd, Fagris Medica Pvt Ltd, Strides emerging markets ltd with Strides Pharma was approved by equity shareholders. The Company shall file a petition with the NCLT, Mumbai Bench for the final sanction of the Scheme.
• Alkem Laboratories receives two observations under U.S. FDA inspection for its Baddi Facility
• Indiabulls Ventures completes the transfer of its stockbroking business to its 100% subsidiary Indiabulls Securities Limited with effect from Feb. 21, 2020
• CRISIL downgrades the ratings of PNB Housing Finance’s long-term debt instruments, NonConvertible debentures, Tier II Bonds and Fixed Deposits to CRISIL AA/Stable from CRISIL AA+/Negative.
• UPL Corporation Ltd., Mauritius, subsidiary of UPL Ltd has issued U.S. dollars denominated Perpetual Subordinated Capital Securities (Bonds) for the aggregate amount of $400 Million. Proceeds to be used to repay the existing debt.
• Biocon’s facility in Malaysia receives three observations under the U.S. FDA inspection.
• Jagran Prakashan bought back 1.49 crore equity shares at an average price of Rs 66.24. The company has deployed Rs 98.96 crore which represents 97.74 percent of the maximum buyback size.
• Mahindra renewables private limited, a step-down subsidiary of Mahindra and Mahindra to sell the entire stake in three of its wholly-owned subsidiary to CLP India Private Ltd.
• CARE revised the rating for Prince Pipe’s long term bank facilities to CARE A- from CARE BBB+ and short term bank facilities from CARE A3+ to CARE A2+. The rationale for the rating being improved liquidity witnessed during 9MFY20 marked by elevation in gross cash accruals with expansion in operating profit margins coupled with a reduction in long term debt.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.84 percent to 11,933 as of 8:40 a.m.

U.S. equity futures sank with Asian shares and gold surged after the number of coronavirus cases outside of China increased and concern grew that global economic growth could take a more sustained hit.

Seoul saw the brunt of losses, down about 3 percent, with declines also in Hong Kong, Sydney and Shanghai. Weakness in S&P 500 Index and Euro Stoxx 50 futures also reflected the caution from traders to news over the weekend that finance chiefs and central bankers from the world’s largest economies see downside risks to the global economy persisting.

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