Investors Lose Rs 3 Lakh Crore As Sensex, Nifty Log Worst Fall In Four Months

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 equity benchmark—S&P BSE Sensex clocked its worst fall since Sept. 3, 2019. The 30-share index closed 1.9 percent or 788 points lower at 40,676.63.

The NSE Nifty 50 closed 1.91 percent lower to end below 12,000. The broader markets represented by the NSE Nifty 500 Index ended 1.95 percent lower.

The vertical decline is greater than what we had anticipated, said Ajit Mishra, vice president and senior technical analyst, Equity Research, Religare Broking.

“One should wait for a technical rebound for the near term considering the current scenario. In such a case, I recommend going short around 12,100 levels with 12,200 as the resistance for stop loss while 11,850 is the target area.”

The market breadth was tilted in favour of sellers. About 1,449 stocks declined and 379 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 4.3 percent fall.

It is highly unlikely that the current rally in crude prices will sustain and hence it will not have any impact on India’s fiscal situation being an oil importer, Chakri Lokapriya of TCG Asset Management Company said.

“The banking NPA resolution is the key thing for recovery of Indian economic recovery. If the same happens, we can see a 10 percent rise in the large-cap index from the current levels,” Lokapriya told BloombergQuint.

The fall in the market is related to the nervousness among investors regarding global war threat, according to Deven Choksey of KRChoksey.

“We do not expect the fall to sustain unless there is a massive disruption seen globally,” Choksey told BloombergQuint in an interaction.

Commenting on crude oil prices, he said that they are highly unlikely to sustain at current high levels as the Iranian crude was already in sanction. “As the situation normalises, which is likely to happen, the panic situation will ease out,” Choksey added.

Force Motors

• Stock rose as much as 11.2 percent to Rs 1,218.
• December domestic sales up 53 percent year-on-year to 2,517 units.

Indian Overseas Bank

• Stock rose as much as 9.5 percent to Rs 12.15
• Government infused Rs 4,360 crore capital

Mindtree

• Stock rose as much a 2 percent to Rs 831.80.
• Fresh longs seen with high open interest of 18 percent.

Dishman Carbogen Amcis

• Stock locked in 5 percent upper circuit.
• Board to consider share buyback on Jan. 16.

Biocon today said in an exchange notification that True North will be investing Rs 536.25 crore in Biocon Biologics for 2.44 percent stake, valuing the company’s subsidiary at Rs 21,450 crore or about $3 billion on a ‘pre-money equity basis’.

Shares of Biocon fell as much as 5.3 percent to Rs 285.05.

The NSE Nifty Bank Index fell nearly 900 points to trade below its 50-day moving average.

Indian Energy Exchange

• Shares rose 8.8 percent, most in over a year, to Rs 173.90 apiece.
• The trading volume was nine times the 20-day average for this time of the day.

Tube Investments

• Shares declined 1.7 percent intraday to Rs 482.60 each.
• The trading volume was 20 times its 20-day average.

Godrej Agrovet

• Shares rose 4.2 percent to Rs 542.50 each.
• The trading volume was eight times its 20-day average.

(Source: Bloomberg)

India’s equity benchmark—S&P BSE Sensex—fell nearly 2 percent or 811 points to 40,652.06.

The NSE Nifty 50 fell 1.9 percent to trade below 12,000. The broader markets represented by the NSE Nifty 500 Index fell 2.03 percent.

About 43 lakh shares of Welspun Enterprises changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

The NSE Nifty 50 fell as much a 1.9 percent to 11,994.80, the lowest since Dec. 12, 2019.

The NSE Volatility Index rose as much as 18.9 percent, the most since Sept. 21, 2018, to 15.09.

Stocks declined and gold, oil and Treasuries advanced in the wake of escalating Middle East tensions as Asian financial markets returned to full strength following New Year holidays.

• The MSCI Asia Pacific Index dropped 1.1 percent.
• Japan’s Topix index lost 1.4 percent.
• Australia’s S&P/ASX 200 Index was little changed.
• South Korea’s Kospi index decreased 1 percent.
• Hong Kong’s Hang Seng Index fell 1.1 percent.
• Shanghai Composite Index was flat.
• S&P 500 futures fell 0.4 percent.
• The S&P 500 Index fell 0.7 percent.
• Euro Stoxx 50 contracts retreated 0.6 percent.

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Source: Bloomberg

Indian stocks extended opening declines to trade at day’s low.

The S&P BSE Sensex fell 1.71 percent or 710 points to 40,753.47 and the NSE Nifty 50 fell 1.77 percent to 12,010.25. The broader markets represented by the NSE Nifty 500 Index fell 1.8 percent.

Shares of Bajaj Finance fell as much as 5 percent to Rs 3,985.50.

About 15 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

The trading volume was three times the 20-day average for this time of the day, Bloomberg data showed.

Earlier today, the company shared its quarterly updates.

Bajaj Finance says:

• Customer franchise as of Dec. 31, 2019 stood at approximately 4.04 crore as compared to 3.26 crore as of Dec. 31, 2018.
• The company added 25 lakh new customers in the December quarter.
• New loans booked during the previous quarter was 77 lakh as compared to 68 lakh registered in the year-ago period.
• AUM rose 35 percent at approx. to Rs 1,45,200 crore as of Dec. 31, 2019.

Source: Bloomberg

Indian stocks extended opening declines to trade at day’s low.

The S&P BSE Sensex fell 1.5 percent or 617 points to 40,851 and the NSE Nifty 50 fell 1.5 percent to 12,042.50. The broader markets represented by the NSE Nifty 500 Index fell 1.5 percent.

The market breadth was tilted in favour of sellers. About 1,383 stocks declined and 366 shares advanced on National Stock Exchange.

The NSE Nifty Bank Index fell over 600 points to trade near its 50-day moving average.

Ten out of11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 3.4 percent fall. On the flip side, the NSE Nifty IT Index was the only sectoral gainer, up 0.05 percent.

NCLAT refused to amend the Tata Sons-Mistry judgement, saying, it does not cast any aspersions against the RoC.

Godrej Consumer comments on India business:

• Demand continued to be challenging in India, impacted by a general consumption slowdown
• Continued our marginally higher than mid single digit volume growth trend
• Uplift in volume growth was led by gradual recovery in household insecticides, new product launches, effective marketing campaigns and tactical consumer offers
• Sales value growth also mirrors the trend of past few quarter’s sales value growth.

Source: Exchange filing

Shares of Titan rose as much as 2.8 percent to Rs 1,171.40.

The company said it witnessed “reasonable growth in the festive season”, with retail sales picking up at the start of the three-month period owing to the wedding season—between November and January. It indicated a 11 percent growth in jewellery sales in the period, in line with the company’s revised projections for the second half of 2019-20.

The stock traded at 61 times its estimated earnings per share for the coming year, according to Bloomberg data.

Nifty’s 12,200 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Jan. 9, rose 253.93 percent to Rs 83.35. Over 2.05 lakh shares were added to the open interest which stood at over 16.33 lakh shares.

The IHS Markit India Services Index rose to 53.3 in December from 52.7 in November. The composite PMI rose to 53.7 from 52.7.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Shares of oil marketing companies declined after Asia’s crude benchmark—Brent Crude—rose as much as 3.1 percent to 70.74 a barrel.

Gold neared a seven-year high after a U.S. airstrike killed one of Iran’s most powerful generals, ratcheting up tensions in the Middle East and driving demand for havens.

The precious yellow metal rose as much as 2.3 percent to $1,588.13 an ounce in the spot market.

Shares of Future Consumer swung from a gain of as much as 1.7 percent to fall as much as 3.7 percent, while shares of Future Retail swung from a gain of as much as 1.2 percent to fall as much as 2.5 percent.

Future Retail and Amazon India signed two agreements focusing on grocery on grocery and general merchandise, fashion and footwear, according to stock exchange notification.

Besides, Future Consumer signed long-term agreement with Amazon Retail India for distribution of its portfolio of brands online.

Shares of Adani Ports and Special Economic Zone swung from a gain of as much as 1.4 percent to fall as much as 2 percent.

The company will buy a 75 percent stake in the all-weather deep-water port in Andhra Pradesh at an enterprise value Rs 13,572 crore, according to its filing with stock exchanges. The deal is EPS (earnings per share) accretive from day one with a payback period of four years, the company said, adding that it will be funded by internal accruals and cash. The acquisition fits well with Adani Ports’ strategy to increase its footprint in Andhra Pradesh and nearly double its cargo throughput to 400 million metric tonnes by the financial year 2024-25 via expansion and acquisitions.

Trading volume was almost nine times its 20-day average, Bloomberg data showed. The scrip returned 3 percent in the past five days and 2.9 percent in the past 30 days.

Indian equity benchmarks extended opening declines.

The S&P BSE Sensex fell as much as 1.24 percent or 515 points to 40,949.18 and the NSE Nifty 50 fell as much as 1.3 percent to 12,069.10. The broader markets represented by the NSE Nifty 500 Index fell as much as 1.4 percent.

Shares of Reliance Industries fell as much as 1.5 percent to Rs 1,513.85.

About 21.7 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 20 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of Dixon Technologies extended gains for the third consecutive trading session. The stock rose as much as 2.1 percent to Rs 4,035.

The company will partner with Samsung to manufacture LED TVs. The LED TV segment contributes about 40 percent of the total revenue, of which, 65 percent is contributed by Xiaomi.

Trading volume was more than four times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

Shares of Bajaj Finance fell as much as 0.8 percent to Rs 4,160.

Bajaj Finance says:

• Customer franchise as of Dec. 31, 2019 stood at approximately 4.04 crore as compared to 3.26 crore as of Dec. 31, 2018.
• The company added 25 lakh new customers in the December quarter.
• New loans booked during the previous quarter was 77 lakh as compared to 68 lakh registered in the year-ago period.
• AUM rose 35 percent at approx. to Rs 1,45,200 crore as of Dec. 31, 2019.

Source: Exchange filing.

Indian equity benchmarks opened lower, extending declines for the second consecutive trading session.

The S&P BSE Sensex fell as much as 0.81 percent or 334.04 points to 41,130.57 and the NSE Nifty 50 fell as much as 0.79 percent to 12,130.10. The broader markets represented by the NSE Nifty 500 Index fell 0.8 percent.

The market breadth was tilted in favour of sellers. About 1,041 stocks declined and 424 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.4 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.7 percent.

Index Futures

• Nifty January futures closed at 12,256.4, premium of 29.8 points versus 57 points.
• Nifty January futures open interest down 4.5 percent, sheds 5.6 lakh shares in open interest.
• Nifty Bank January futures closed at 32161.2, premium of 92 points versus 135 points.
• Nifty Bank January futures open interest down 3.3 percent, sheds 43,000 shares in open interest.

Options

• Nifty PCR at 1.36 versus 1.46 (across all series).

Nifty Weekly Expiry: Jan. 9

• Max open interest on call side at 12,300 (22 lakh shares).
• Max open interest on put side at 12,200 (19.3 lakh shares).
• Open interest addition seen at 12,250C (+7.1 lakh shares), 12,200C (+5.5 lakh shares), 12,100P (+4.2 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (23.9 lakh shares).
• Max open interest on put side at 12,000 (39.8 lakh shares).

• KRBL promoters acquired 45,000 shares on Dec. 31.
• Electrosteel Castings promoter GK Sons acquired 1.45 lakh shares on Dec. 31.
• Grasim Industries promoter Pilani Investment acquired 4.4 lakh shares on Dec. 31.
• Anant Raj promoter Amar Sarin acquired 3.8 lakh shares from Dec. 30-31.
• Laurus Labs promoter Raju Kalidindi sold 1.67 lakh shares from Dec. 30-31.

• Tata Motors to meet Edelweiss Securities and Fidelity Management from Jan. 6-7.
• Mahindra Logistics to meet GoDigit General Insurance on Jan. 6.

• Simplex Infrastructures to move into ASM Framework.
• Lakshmi Vilas Bank to move out of ASM Framework.
• Indiabulls Real Estate, LGB Forge, Sharda Cropchem, SORIL Infra Resources, Everest Kanto Cylinder, Manaksia Steels, Prakash Industries to move into short term ASM Framework.
• Simplex Infrastructures, Mercator, Oil Country Tubular, Rama Steel Tubes, Optiemus Infracom to move out of short term ASM Framework.
• ABB India price band revised to 20 percent.
• Gallantt Ispat price band revised to 10 percent.
• Dishman Carbogen Amcis, Vakrangee, Monnet Ispat & Energy price band revised to 5 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.34 percent to 72.08 against the greenback, the weakest since Nov. 14, 2019.

Indian equity benchmarks are set to open lower

The S&P BSE Sensex fell 0.14 percent to 41,405 during the pre-market trade and the NSE Nifty 50 fell 0.5 percent to 12,151.10.

• Adani Ports will buy a 75 percent stake in the all-weather deep-water port in Andhra Pradesh at an enterprise value Rs 13,572 crore, according to its filing with stock exchanges. The deal is EPS (earnings per share) accretive from day one with a payback period of four years, the company said, adding that it will be funded by internal accruals and cash. The acquisition fits well with Adani Ports’ strategy to increase its footprint in Andhra Pradesh and nearly double its cargo throughput to 400 million metric tonnes by the financial year 2024-25 via expansion and acquisitions.
• Titan said it witnessed “reasonable growth in the festive season”, with retail sales picking up at the start of the three-month period owing to the wedding season—between November and January. It indicated a 11 percent growth in jewellery sales in the period, in line with the company’s revised projections for the second half of 2019-20.
• Sobha informed the exchanges that it sold nearly 10.66 lakh square feet of real estate in December quarter—a 17 percent increase over the previous year—netting nearly Rs 726.1 crore in sales value. Of this, Sobha’s share was around Rs 607.5 crore. That’s because the company developed some projects in coordination with other realtors. The average realisation, however, fell nearly 11 percent to Rs 6,811 per sq. ft, the company said. It expects the metric to improve in the future on the back of good traction in its luxury and super-luxury projects.
• Dixon Technologies will partner with Samsung for manufacturing of LED TVs.The LED TV segment contributes about 40 percent of the total revenue, of which, 65 percent is contributed by Xiaomi.
• HDFC reduced the benchmark lending rate by 0.05 percent, a move that will bring down interest rate for existing as well new borrowers. The New rates will now range between 8.20 percent and 9 percent, and the change will benefit all existing customers, it said.
• Allahabad Bank Government infused Rs 2,153 crore capital.
• Indian Overseas Bank Government infused Rs 4,360 crore capital.
• SBI: SBI Cards and Payments to raise capital via issue of commercial papers worth Rs 400 crore on a private placement basis.
• Birlasoft: Rajeev Gupta resigned from chief financial officer’s post with effect from March 31.
• Gayatri Highways said that amount of defaults from financial institutions stood at Rs 45.69 crore on Dec. 31, while the total financial indebtedness stood at Rs 102.76 crore.
• Bank of Baroda will consider raising capital via issue of debt on Jan. 8.
• Texmaco Rail & Engineering: NCLT disposed of an application filed by Veekay General against the company’s arm, pursuant to a settlement.
• Supreme Infra will consider settlement procedure with creditors on Jan. 10.
• TCS filed an appeal with the Supreme Court on Jan. 3, in the TCS versus Cyrus Investments Pvt Ltd. & Ors case. This was against National Company Law Appellate Tribunal Judgment directing reinstatement of Cyrus Mistry as a director of the company for rest of the tenure
• Ashoka Buildcon executed a concession agreement with National Highways Authority of India for a four-laning project of National Highway-161 in Telangana. This was under Bharatmala Pariyojna on Hybrid Annuity Model.
• J Kumar Infraprojects: India Ratings affirmed long term issuer rating at ‘IND A+’ resolving the Rating Watch Negative and giving a stable outlook.
• Future Retail: Board approved raising of $500 million senior secured USD-denominated notes. This is to meet the capital expenditure for the acquisition of in-store infrastructure retail assets.
• Syndicate Bank notified on the proposed strike on Jan. 8. In the event the strike materializes, the functioning of the branches /offices may be impacted.
• Divi’s Laboratories: Board approved re-designation of Kiran Divi as whole-time director and chief executive officer.
• Adani Transmission: Adani Electricity Mumbai, a wholly-owned subsidiary company of the company incorporated a new subsidiary company namely, Adani Electricity Mumbai Infra Ltd. on Jan. 3. AEMIL will be providing transmission, distribution and other infrastructure-related services. It is yet to commence the operations.
• Reliance Capital disclosed Rs 18,766 crore worth of long-term and short-term debt as on December 2019.
• NCC: Board approved the merger of two wholly-owned subsidiaries—Vaidehi Avenues Limited and Aster Rail Private Ltd. with the company.
• PNB Gilts: Reliance Home Finance defaults on Rs 25 crore worth of non-convertible debentures held by the company.
• Jump Networks to launch its first ‘ JUMPNET public Wi-Fi service’ in Sindhudurg, Maharashtra starting Jan. 4.
• IRB Infra received NOC from NHAI to transfer 9 BOT assets to IRB Infrastructure Trust and for GIC investment for 49 percent stake in trust. The company has received a certificate of registration from SEBI for the trust while 98 percent of lenders have also given their approval for the deal.

December Auto Sales

• Force Motors Domestic Sales up 53 percent at 2517 units vs 1650 units

Bajaj Finance Q3 Updates

• Customer franchise as of Dec. 31, 2019 stood at approximately 4.04 crore as compared to 3.26 crore as of Dec. 31, 2018.
• The company added 25 lakh new customers in the December quarter.
• New loans booked during the previous quarter was 77 lakh as compared to 68 lakh registered in the year-ago period.
• AUM rose 35 percent at approx. to Rs 1,45,200 crore as of Dec. 31, 2019.

• Markit India services and composite PMIs for December to be released
• RBI to hold special OMO purchase and sale of government bonds and also conduct cash bills.

• Oil’s wild ride continued as crude futures jumped for a second day, rising to just shy of $70 a barrel.
• Gold surged to the highest in more than six years
• The yen held near its strongest level against the dollar in almost three months
• U.S. stocks slumped as investors fretted that an escalation in Middle East tensions could dent global growth.

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Source: Bloomberg

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 12,209 as of 8:47 a.m.

Stocks declined and gold, oil and Treasuries advanced in the wake of escalating Middle East tensions as Asian financial markets returned to full strength following New Year holidays. Japanese, Australian and South Korean equities fell, and U.S. futures retreated.

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