Sensex Closes Over 200 Points Lower, As TCS, Infosys Help Pare Early Losses

Indian equities ended lower, resuming declines after a one-day breather. The indices, however, managed to pare early losses, led by the gains in Tata Consultancy Services Ltd. and Infosys Ltd.

The S&P BSE Sensex fell 0.55 percent to end at 38,409.48 after declining as much as 2.01 percent earlier. The NSE Nifty 50 fell 0.45 percent to close at 11,252.20 after declining as much as 1.96 percent earlier. The broader markets represented by the NSE Nifty 500 Index ended 0.7 percent lower after falling as much as 2.13 percent earlier.

The market breadth was tilted in favour of sellers. About 1,291 stocks declined and 533 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by the NSE ended lower, led by the NSE Nifty Private Bank Index’s 1.8 percent fall. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 2.1 percent.

The Indian rupee reversed losses and traded little changed at 73.31 against the U.S. dollar.

The Brent crude pared losses and rose 0.6 percent to $52.20 a barrel. It had erased morning gains and had declined as much as 0.48 percent.

Chalet Hotels

• Stock fell as much as 7.8 percent to Rs 305.
• Trading volume was more than 30 times its 20-day average.

Tube Investments

• Stock fell as much as 3.1 percent to Rs 511.25.
• Trading volume was more than eight times its 20-day average.

Oriental Bank of Commerce

• Stock rose as much as 19.9 percent to Rs 42.35.
• Trading volume was almost 10 times its 20-day average.

FDC India

• Stock swung from a gain of as much as 6.1 percent to fall as much as 2.1 percent.
• Trading volume was more than five times its 20-day average.

BASF India

• Stock rose for the second consecutive trading session.
• Shares advanced as much as 12.7 percent to Rs 1,144, the highest since July 19, 2019.
• Trading volume was almost four times its 20-day average.

Essel Propack

• Stock rose as much as 8 percent to Rs 173.25.
• Motilal Oswal initiated coverage with a ‘Buy’ rating and a price target at Rs 210.
• Here’s what the analysts had to say:
• To benefit from expansion measures and improvement its product mix across geographies
• Global market share of oral care and personal care tubes to increased
• To benefit from the increasing use of laminated tubes over aluminum.
• CAGR of 8 percent in revenue and 20 percent in PAT over FY19-22

3M India

• Shares rose as much as 9.1 percent to Rs 22,500.
• The Stock has been focus after more confirmations of Corona Virus Outbreak has come in last two days

Dr. Reddy’s Laboratories

• Stock rose as much as 4.4 percent to Rs 3,178.40.
• fresh longs seen with high open interest of 13 percent.
• Trading volume was two times its 20-day average.
• Shares traded above their 50-day moving average.
• Positive sentiment for pharma stocks.
• Sandoz has paid $195 million to settle criminal charges that it conspired with other pharma firms to fix generic drug prices.

Indian equities traded off day’s low.

The S&P BSE Sensex fell 0.77 percent to 38,338 after declining as much as 2 percent earlier. The NSE Nifty 50 fell 0.52 percent to 11,247 after declining as much as 1.96 percent earlier.

Jubilant FoodWorks

• The stock is falling over the coronavirus threat to sporting events like the IPL and the Olympics.

Bajaj Finance

Domestic fund houses are said to be accumulating the stock at lower levels.

Tata Motors & Tata Elxsi

• Stocks are declining over concerns on the slowdown in China

Stocks mentioned on Dealers' say are based on conversations with brokerage houses and not thoroughly researched. Please consult a registered financial stock adviser before buying/selling any of these stocks.

Shares of BASF India rose for the second consecutive trading session. The stock rose as much as 12.7 percent to Rs 1,144, the highest since July 19, 2019.

Trading volume was almost four times its 20-day average, Bloomberg data showed. The Relativ Strength Index was above 70, indicating that the stock may be oversold.

• Buy Avenue Supermarts for target of Rs 2,400, Stop Loss of Rs 2,100
• Sell Ashok Leyland for target of Rs 65 and Stop Loss of Rs 75

Indian equities traded lower but recovered marginally from day’s low.

The S&P BSE Sensex fell 1.36 percent to 38,088 after declining as much as 2 percent earlier. The NSE Nifty 50 fell 1.24 percent to 11,163 after declining as much as 1.96 percent earlier.

The market breadth was tilted in favour of sellers. About 1,445 stocks declined and 357 shares advanced on National Stock Exchange.

ITC Ltd. lost about Rs 2.5 lakh crore in market capitlisation in seven trading sessions.

The stock fell 7 percent in seven days. Today, the scrip fell as much as 3.8 percent to trade at more than a four-year low at Rs 186.55.

Shares of Lemon Tree Hotels decline for the seventh consecutive trading session. The stock fell as much as 7.6 percent to hit an all-time low at Rs 45.70.

The company lost Rs 1,355 crore in market capitalization in seven days. The scrip traded at 39.6 times its estimated earnings per share compared to 55.6 times for the two-year historical average, according to Bloomberg data. The Relative Strength Index was at 29, indicating that the stock may be oversold.

Share of IRCTC hit their lower circuit of 10 percent at Rs 1,565.40.

The stock had declined in six out of seven trading sessions. The scrip fell 18 percent in the past five days and rose 14 percent in the past 30 days, according to Bloomberg data.

U.S. stock futures rebounded after Tuesday’s sharp decline, and European contracts rose, as investors took in Super Tuesday election results alongside the Federal Reserve’s emergency interest-rate cut.

• Futures on the S&P 500 Index rose 1.3 percent as of 7:05 a.m. in London. The underlying gauge dropped 2.8 percent on Tuesday.
• Euro Stoxx 50 contracts rose 0.5 percent.
• Japan’s Topix index ended 0.2 percent down.
• Hong Kong’s Hang Seng was flat.
• The Shanghai Composite rose 0.6 percent.
• South Korea’s Kospi index rose 2.2 percent.
• Australia’s S&P/ASX 200 Index fell 1.7 percent.

The NSE Nifty Bank Index fell 3 percent or over 1,000 points, led by the declines in Ys Bank Ltd., IndusInd Bank Ltd. and State Bank of India.

The total number of people tested positive for coronavirus in India has risen to 28, of which three people from Kerala have been cured, Health Minister Harsh Vardhan said today in a briefing.

Key Highlights:

• Have urged Delhi government to ensure all hospitals have proper facilities for isolation at earliest.
• Delhi patient found to have infected six relatives in Agra who have tested positive.
• Will now universally screen all passengers from all inbound overseas flights.
• Have isolated Italian group of 24 tourists who entered in mid-Feb, where one case was positive.
• Total 16 Italians from that tourist group have now tested positive; and one Indian driver.
• With information available at this moment, total of 28 cases found, of which three have been cured
• Three patients from Kerala have been cured.
• Now have 34 laboratories for testing.
• No restrictions on sending children to school.
• Have screened 5.89 lakh at airports, 15,000 at sea ports, 10 lakh at borders

Catch all the live updates on Coronavirus in India here.

Indian equities declined and traded at day’s low.

The S&P BSE Sensex fell over 1.8 percent or 702 points to 37,900 and the NSE Nifty 50 more than 1.82 percent to below 11,100. The broader markets represented by the NSE Nifty 500 Index fell over 2 percent.

That came after the Indian government said that the total number of people tested positive for coronavirus in India has risen to 28, of which three people from Kerala have been cured.

The NSE Nifty Pharma Index rose nearly 2 percent, led by the gains in Sun Pharmaceutical Industries Ltd., Cipla Ltd., and Dr. Reddy’s Laboratories Ltd.

The yield on the 10-year note fell for the fourth consecutive trading session and declined as much as 12 basis points to 6.22 percent, the lowest since December 2016.

Shares of Sun Pharma Advanced Research Company extended gains for the second consecutive trading session. The stock rose as much as 9.2 percent, the most in nearly three months, to Rs 161.70.

The scrip was the second-best performer on the NSE Nifty 500 Index. It returned 12 percent in two trading sessions.

Trading volume was six times its 20-day average, according to Bloomberg data.

Shares of Future Consumer extended gains for the third consecutive trading session. The stock rose s much as 9.7 percent, the most since March 3, to Rs 15.25, the highest since Feb. 27, 2020.

The scrip advanced 23.9 percent in three trading sessions. Prior to March 2, shares of the company had declined for 10 trading sessions.

The stock declined 68 percent in the past 12 months compared to a 6.6 percent gain in the Sensex.

Indian equities erased morning gains and declined to trade at day’s low.

The S&P BSE Sensex fell as much a 0.74 percent to 38,338.87 and the NSE Nifty 50 fell as much as 0.66 percent to 11,229. The broader markets represented by the NSE Nifty 500 Index fell as much as 0.74 percent.

The Indian rupee erased opening gains and weakens to below 73.5 a dollar, the lowest since November 2018.

Shares of Karur Vysya Bank fell for the ninth consecutive trading session, their longest stretch of losses in nearly 17 months.

The stock fell as much as 5.2 percent to Rs 37.05, the lowest since February 2010. The scrip declined 25 percent in nine trading sessions.

The company lost Rs 924 crore in market capitalisation. The relative strength index was at 21, indicating that the stock may be oversold, Bloomberg data showed.

Ten out of 18 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock. The scrip, however, traded below its consensus price target since October 2017.

Ten out of 11 sectoral gauges compiled by the NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.4 percent fall. On the flip side, the NSE Nifty Pharma Index was the top sectoral gainer, up 1.6 percent.

The Supreme Court today has set aside RBI circular which had barred banks from being involved in cryptocurrency trading.

The Markit India Services Business Activity Index rose to 57.5 last month from 55.5 in January, according to a statement. A reading below 50 indicates contraction in activity, while a number above it signals expansion.

The Markit India Composite PMI Output Index also rose to 57.6 in February from 56.3 in the previous month.

Shares of Yes Bank extended declines for the fourth consecutive trading session. The stock fell as much as 5.1 percent to Rs 29.60.

About 12.8 lakh shares of the lender changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Besides, Reliance Infrastructure has defaulted on payment of dues worth Rs 52 crore. The total loan amount worth Rs 3,729 crore is from a consortium of banks, from which Rs 3,627 crore is taken from Yes Bank.

Of the shares traded, 52 percent were at the ask price and 46 percent were at the bid, according to Bloomberg data. The scrip was the worst performer on the Nifty had has declined 20 percent in four days.

Nifty’s 11,400 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 March 5, dropped 28.6 percent to Rs 38.20. About 6.25 lakh shares were added to the open interest which stood at over 22.29 lakh shares.

Shares of the drugmaker extended gains for the second consecutive trading session. The stock rose as much as 1.9 percent to Rs 575.70. It ended 6.3 percent higher on Tuesday

The Bengaluru-based pharma company gained as much as two percent after getting a U.S. FDA approval for its Tetracycline Hydrochloride Capsule. The approval has come from its flagship facility in Bengaluru. The said drug will be marketed in the U.S. Markets, where it is estimated to have sales of $16 million, according to the company's media statement.

Tetracycline Hydrochloride Capsule is used to treat different bacterial infections of the skin and other body systems.

Shares of InterGlobe Aviation fell as much as 4.5 percent to Rs 1,173 while shares of SpiceJet fell as much as 8.1 percent to Rs 68.30. Both the stocks declined for five consecutive trading session.

Shares of Hindustan Aeronautics fell as much as 5.1 percent to Rs 638.

The state-run firm said that it has received notice from International Court of Arbitration on request for arbitration from RUAG Aerospace Services GMBH. The company said that it has initiated necessary action with respect to the arbitration process.

The amount in dispute partially quantified by the opposition party is $21,872,500 or Rs 160.25 crore against alleged damages on breach of agreement regarding the supply of structural parts for the production of Dornier-228, by the company.

Shares of Vedanta resumed declines after a one-day breather. The stock fell as much as 3.7 percent to Rs 115.10.

Moody's Investors Service has downgraded Vedanta’s corporate family rating to B1 from Ba3. Moody's has also downgraded the rating on senior unsecured bonds issued by Vedanta and those issued by its wholly-owned subsidiary, Vedanta Resources Finance II Plc and guaranteed by Vedanta, to B3 from B2. The outlook on all ratings is stable. The downgrade was triggered by a sustained deterioration in the company's credit profile.

The scrip traded at 7.4 times its estimated earnings per share for the coming year, according to Bloomberg data. The stock declined 11 percent the past five days and dropped 6 percent in the past 30 days.

Shares of HFCL rose as much as 6.7 percent, the most since Dec. 4, 2019, to Rs 13.50.

The company received a purchase order worth Rs 196 crore from L&T for the supply of optical fibre cables for construction of Telangana Fiber Grid.

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

Indian equities opened higher, extending gains for the second consecutive trading session.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,570 and 11,287.35 respectively after gaining over 0.4 percent earlier. The broader markets represented by the NSE Nifty 500 Index fell as much as 0.4 percent.

The market breadth was tilted in favour of buyers. About 958 stocks advanced and 438 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by the NSE traded lower, led by the NSE Nifty Metal Index’s 0.8 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.86 percent.

• Buy Max Financial Services for target of Rs 620, keeping a Stop Loss of Rs 575
• Sell Mahindra & Mahindra for target of Rs 440, keeping a Stop Loss of Rs 480

Futures

• Nifty March futures closed at 11,294.7, discount of 8.5 points versus 9 points
• Nifty March futures open interest up 3.4 percent, adds 4.6lk shares in open interest
• Nifty Bank March futures closed at 29,223.7, premium of 46.7 points versus 16.7 points
• Nifty Bank March futures open interest up 4.6 percent, adds 53,000 shares in open interest

Options

• Nifty PCR at 1.20 versus 1.13 (across all series)

Nifty weekly Expiry: March 5

• Max open interest on call side at 11,600 (19 lakh shares)
• Max open interest on put side at 11,000 (17.7 lakh shares)
• open interest addition seen in 11,200P (+5.2 lakh shares), 11,100P (+3.1 lakh shares)

Nifty Monthly Expiry: March 26

• Max open interest on call side at 12,000 (25 lakh shares)
• Max open interest on put side at 11,000 (25.2 lakh shares)

• Tata Chemicals ex-date for demerger
• Suven Life Sciences, DQ Entertainment (International) to move into ASM Framework
• FCS Software Solutions, Sadbhav Infrastructure Project to move into short term ASM Framework
• Subex to move out of short term ASM Framework
• Pricol, Automotive Stampings and Assemblies price band revised to 10 percent
• Sterling and Wilson Solar price band revised to 5 percent

• Antony Waste Handling Cell has raised Rs. 60.94 crore from 3 Anchor Investors-Massachusetts Institute of Technology, Vantage Equity Fund and 238 Plan Associates LLC
• SBI Cards and Payment Services IPO subscribed 0.87 times. Retail investors subscribed 1.21 times.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.3 percent against the greenback.

Indian equities are set for a positive start.

The S&P BSE Sensex rose 0.28 percent to 38,733 during the pre-market trade and the NSE Nifty 50 rose 1.06 percent to 11,418.

• National Company Law Tribunal approved NBCC’s bid for Jaypee Infratech with modifications. NCLT said that Rs 750 crore deposited by Jaiprakash Associates in Supreme Court will be part of the resolution plan for Jaypee Infratech.
• Moody's Investors Service has downgraded Vedanta’s corporate family rating to B1 from Ba3. Moody's has also downgraded the rating on senior unsecured bonds issued by Vedanta and those issued by its wholly-owned subsidiary, Vedanta Resources Finance II Plc and guaranteed by Vedanta, to B3 from B2. The outlook on all ratings is stable. Downgrade triggered by a sustained deterioration in the company's credit profile.
• Tata Teleservices and Tata Teleservices (Maharashtra) has paid additional Rs 2,000 crore to Department of Telecommunications towards AGR dues. Both had earlier paid Rs 2,197 crore to DoT on Feb. 17.
• Hindustan Aeronautics said that it has received notice from International Court of Arbitration on request for arbitration from RUAG Aerospace Services GMBH. The Company said that it has initiated necessary action with respect to the arbitration process. The amount in dispute partially quantified by the opposition party is $21,872,500 or Rs 160.25 crore against alleged damages on breach of agreement regarding the supply of structural parts for the production of Dornier-228, by the company.
• Indiabulls Real Estate said on the progress of merger of certain assets of Embassy Group with the company, stating that process of valuation of such Embassy assets by independent valuers for arriving at the share swap ratio for the proposed merger is progressing well. Additionally, Embassy Group has also reached an advanced stage of discussions with foreign financial investors such as Blackstone and others for an investment of up to $200 million. Upon the merger, these foreign investors will also become shareholders of the merged Indiabulls Real Estate, a listed entity. Both companies are trying to execute transaction documents on or before March 23.
• Max Financial Services: Board approved allotment of 7.54 crore shares (21.87 percent) at Rs 565.11 per share aggregating to Rs 4,264 crore on a preferential basis to Mitsui Sumitomo Insurance, for consideration other than cash, being transfer of 39.47 crore shares (20.57 percent) at Rs 108.02 per share worth Rs 4,264 crore held by to Mitsui Sumitomo Insurance, in Max Life Insurance. Both these transactions are subject to corporate and regulatory approvals. EGM of shareholders to be held on April 2 to seek approval for this action.
• Raymond received sanction from NCLT Mumbai for the reorganization and consolidation of its FMCG Business and appointed date for the scheme has been fixed as Dec. 1, 2018. New consolidated entity Ray Universal Trading will be converted into a public company and renamed as Raymond Consumer Care.
• Godrej Properties to be included in the Futures and Options Segment with effect from March 27 (April 20 Series), subject to fulfilment of eligibility criteria.
• Newgen Software Technologies received a patent for Mark Detection System and Methodology from the U.S. Patent Office.
• GTPL Hathway: Promoter Jio Content Distribution Holdings reduced stake from 4.48 percent to 0.64 percent in the company on Feb. 28 via offer for sale.
• Monnet and Ispat Energy said that integrated operations at its Raigarh Plant have restarted with effect from March 2.
• Reliance Capital: Axis Capital Trustee Services increased stake via share pledge from 16.5 percent to 21.42 percent on Feb. 26.
• HFCL: Received purchase order worth Rs 196 crore from L&T for supply of optical fibre cables for construction of Telangana Fiber Grid.
• Tech Mahindra: To sell its Netherland based subsidiary – Terra Payment Services (Netherland) BV – for an upfront payment of $9 million and a bonus payout of $13.8 million subject to certain conditions.
• Bliss GVS Pharma denied allegations of a media report which said that the company's promoters are under SEBI's radar for insider trading. The company said that it has no received any orders from SEBI. "SEBI is examining certain transactions as it is entitled to examine in the interest of investors under securities laws to ensure no one violates the law. SEBI has sought cooperation of certain officials of the company, and accordingly the company and its officials are committed to fully assist SEBI, as legally advised, in whatever queries SEBI may have," the pharma company said in a stock exchange filing.

• Markit India services and composite PMIs for February to be released.
• Supreme Court will give its verdict on RBI’s cryptocurrency curbs and will also hear the case on Delhi riots.

• Buy Nifty At 11,200 for a target of 11,350, keeping a stop loss of 11,120
• Buy Bata India for target of Rs 1,660, keeping a stop loss of Rs 1,602
• Sell RBL Bank at Rs 290 for target of Rs 280 and Stop Loss of Rs 295

• Markit India services and composite PMIs for February to be released.
• Supreme Court will give its verdict on RBI’s cryptocurrency curbs and will also hear the case on Delhi riots.

• U.S. stocks tumbled and Treasuries surged as investors worried the Federal Reserve’s emergency cut won’t be enough to combat the economic impact of the coronavirus.
• Besides, early wins by Joe Biden lessened the chance of the Bernie Sanders nomination that had unsettled some investors.
• The two-year Treasury yield sunk to 0.70 percent, while the 10-year plunged below 1 percent for the first time ever.
• Oil advanced for a second day after an OPEC+ committee recommended a larger supply cut to offset lost demand from the spread of the coronavirus. Gold was little changed at $1,642 an ounce.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.28 percent to 11,238.50 as of 7:45 a.m.

Asian stocks were mixed, with Japan and Hong Kong flat, Korea up, and China and Australia down. U.S. stock futures retraced a slice of Tuesday’s sharp decline.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

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