Thank you, readers! Here are the main highlights from today’s trading session##Thank you, readers! Here are the main highlights from today’s trading session
- Market Erases Gains Of Last Two Days, Nifty Slips Below 50-DMA
- Financials Contribute Over 60 Percent To The Nifty Fall; HDFC Twins Top Losers
- Nifty Falls 129 Points To Close Just Above 12,100
- Sensex Slips 458 Points To End The Session At 41,155
- Midcap Index Fails To Hold Recovery, Slips 205 Points From Day’s High
- Nifty Bank Gives Up 75 Percent Of Gains Seen In Last Two Sessions
- 9 Of 12 Nifty Bank Stocks Close In The Red; HDFC Bank, Kotak Bank Top Losers
- ICICI Bank Slips From Highs But Ends In the Green After Healthy Q3
- Rating Cut By CRISIL and India Ratings Leads To A 4 Percent Fall In Vodafone Idea
- Dr Reddy’s Surges Over 5 Percent After Reporting Operationally Strong Earnings
- Wockhardt Ends At Upper Circuit After Reporting Profit Against Loss YoY
- Metals Under Pressure Amid Weak Global Cues; Vedanta, Tata Steel Top Losers
- Market Breadth In Favour Of Declines; Advance-Decline Ratio At 2:3
Closing Bell: Sensex, Nifty end 1% lower on Coronavirus fears; metal stocks drag##Closing Bell: Sensex, Nifty end 1% lower on Coronavirus fears; metal stocks drag
Indian shares ended over 1 percent lower on Monday, following Asian peers, mainly dragged down by metals stocks, as fears about the economic impact of Coroonavirus outbreak curbed risk appetite. The Sensex settled 458 points lower at 41,155, while Nifty ended 129 points lower at 12,119.
Globally, Japan's Nikkei average and US S&P 500 mini futures fell sharply, and oil prices slumped 2 percent to multi-month lows, amid news that the ability of the coronavirus to spread is getting stronger, with the death toll from the virus rising to 80.
Meanwhile, broader markets outperformed with Nifty Midcap down only 0.4 percent and Nifty Smallcap indices up 0.03 percent. Among stocks, Dr Reddy's M&M, Cipla, UltraTech Cement and Eicher Motors were the top gainers on Nifty, while metal stocks like Vedanta, Tata Steel, JSW Steel led the losses.
All sectoral indices, except Nifty Pharma, ended the day in the red. Nifty Metal fell the most, down 3 percent, while Nifty PSU Bank and Nifty Bank lost 2.2 percent and 1.3 percent, respectively. Nifty FMCG was also down 1 percent, and Nifty IT shed 0.5 percent. However, Nifty Pharma advanced 1.5 percent during the day. The rally was led by Dr Reddy's which rose over 5 percent post its Q3 earnings.
Market gives a thumbs down to Siemens' acquisition of C&S Electric##Market gives a thumbs down to Siemens' acquisition of C&S Electric
Shares of Siemens fell more than 4 percent on Monday as brokerages frowned on the industrial group's purchase of a New Delhi-based electrical equipment maker. Siemens purchased 99.22 percent stake in C&S Electric, which makes low-voltage switchgear parts, metering devices and other products used to transmit and distribute electricity, for Rs 2,100 crore. The stock fell as much as 4.4 percent to Rs 1,552 a share on the Bombay Stock Exchange (BSE). READ MORE
Motilal Oswal bets on the smallcap space; says next upswing on the anvil##Motilal Oswal bets on the smallcap space; says next upswing on the anvil
The Nifty Midcap100 index in 2019 declined around 4 percent while Nifty Smallcap100 plunged 10 percent. Despite a bigger correction than mid-caps, Motilal Oswal believes that buying small-caps at the right time has resulted in significant outperformance over large-caps. From its peak, while the Nifty 50 is down around 7 percent, Nifty Smallcap 100 is down 43 percent. For two consecutive financial years, small-caps have underperformed large-caps but that might not be the case anymore. READ MORE
Brokerages raise target price on this 'best-performing' bank stock##Brokerages raise target price on this 'best-performing' bank stock
Brokerages remained bullish increased their target price on ICICI Bank after it reported a strong financial performance in the third quarter of financial year 2020. The stock of ICICI Bank has been best performer of this year among its peers. The stock has given 48.74 percent returns in the past one year.
Global brokerage Jefferies has raised the target price (TP) on ICICI Bank stock to Rs 620 from Rs 545 earlier, retaining its ‘Buy’ call. The brokerage said the bank has a strong balance sheet and is well placed to face tough macro-economic conditions. JPMorgan maintained an ‘Overweight’ rating and raised TP to Rs 650 from Rs 560 per share. READ MORE
Despite rising 57% in the last 1 year, Motilal Oswal downgraded this stock; here's why##Despite rising 57% in the last 1 year, Motilal Oswal downgraded this stock; here's why
Despite rising 57 percent in the last one year, brokerage firm Motilal Oswal (MOSL) has downgraded Siemens to 'neutral' post its acquisition of C&S Electric. As per the brokerage, C&S Electric acquisition not the best use of cash and asked investors to await a better entry point in the stock. Siemens has announced the acquisition of 99.22 percent stake in C&S Electric for Rs 2,100 crore. C&S Electric is engaged in the business of low-voltage/medium voltage switchgear, busbars, diesel gen-sets, solar and EPC.
The scope of the acquisition comprises low voltage switchgear and panels, low/medium voltage power busbars as well as protection and metering devices, MOSL noted in a recent report. Siemens’ acquisition of C&S Electric is a reaction to the fear of losing market share in the switchgear business, especially after Schneider’s acquisition of L&T’s portfolio, the brokerage report stated. READ MORE
This largecap auto stock could rise 12 percent in the next nine months##This largecap auto stock could rise 12 percent in the next nine months
Axis Securities has chosen Ashok Leyland as its 'Pick of the Week' with a target price of Rs 97 per share in the next six to nine months. The revised target price has an upside of 12 percent from Friday's closing price of 86.5 per share. At 10.22 am, Ashok Leyland shares quoted at 86.80 per share on BSE, up 0.35 percent. "We reiterate a Buy on Ashok Leyland with a TP of Rs 97," analysts at Axis Securities wrote in a report on Monday.
The brokerage expects Ashok Leyland's recent rally to continue on the back of arrest in commercial vehicle industry decline. Ashok Leyland share price has given a little over four percent return to investors in the last one year amid a wider auto slowdown, underperforming BSE Sensex by almost 11 percent. But, the four percent return too has come largely on the back of a smart over 20 percent recovery in the stock in the last 6 months. READ MORE
Slippages will trend downwards next quarter onwards, says Bank of Baroda to CNBC-TV18##Slippages will trend downwards next quarter onwards, says Bank of Baroda to CNBC-TV18
Here are the highlights from the conversation:
1. Issues related to divergence impacted earnings
2. Ex-divergence results in-line with expectations
3. Have been seeing robust growth in portfolios like car loans
4. Slippages will trend downwards next quarter onwards
5. Watchlist has come down QoQ in Q3FY20
6. Cost-saving via merger will be at Rs 9,000 crore over 5 years
7. It takes at least 12 months for technological integration in any merger process
8. Corp banking accounts consolidated as banks use similar technology
9. Consolidation of the retail portfolio will take some time
10. Well positioned for growth especially amongst PSU banks
11. Secular trend in the economy is impacting the growth
12. Low-cost deposit ratio has increased by 280 bps YoY
13. Bank has not lost its ability to attract deposits
14. Company well-positioned to grow faster than the industry
Here'a a quick roundup of live market action:##Here'a a quick roundup of live market action:
- Benchmark indices continued to trade lower with Sensex down over 200 points and Nifty well below the 12,200 levels amid worries of the new coronavirus outbreak.
- Dr Reddy's, M&M, ICICI Bank, Bajaj Auto, and Cipla were the top gainers on the Nifty50 index, while metal stocks were the major losers on the benchmark index.
- Metal stocks were under pressure as metal prices declined on demand concerns after CoronaVirus cases in China surge. JSW Steel, Tata Steel, Vedanta, and Hindalso fell 2-4 percent.
- Meanwhile, broader market outperformed with Nifty Midcap and Nifty Smallcap indices up 0.5 percent and 0.2 percent in an otherwise weak market.
- Post reporting weak earnings, Bank of Baroda has fallen as much as 3.7 percent to Rs 92 per share in intra-day deals on Monday. Muted business growth and one-offs in opex further drove its loss to Rs 1,410 crore in the third quarter.
BSE signs licensing agreement with ICE Futures Europe##BSE signs licensing agreement with ICE Futures Europe
The BSE has signed a licensing agreement with Intercontinental Exchange for the use of the ICE Brent Index as the final settlement price for BSE’s Rupee-denominated Brent futures contract. “This licensing agreement will help Indian market participants access Rupee-denominated Brent benchmark prices and deepen the Indian commodity markets by providing convenient and cost-effective onshore hedging products,” BSE said in a release. The agreement will also enable the price discovery of Brent crude prices in the Indian time zone based on domestic fundamentals, the bourse added. READ MORE