Market Live: Sensex slips 500 pts; banks, IT, oil stocks drag; SAIL up 5%
12:16 pm HDFC Securities on SpiceJet: HDFC Securities has upgraded rating on SpiceJet to Buy with a target price at Rs 165 per share. Currently, it was trading at Rs 141.50, up 0.89 percent.
The research house said SpiceJet’s Q3FY18 results were ahead of estimates on better-than-expected yield and load factor. Revenue grew 26.8 percent as yield was higher by 8.8 percent. Adjusted PAT was up 68.3 percent.
ASKM/RPKM growth was strong at 15.5/18.8 percent respectively, with passenger growth at 18.2 percent.
Ancillary revenue increased by 23.4 percent, on higher luggage fees and focus on merchandise sales. CASK was higher at Rs 3.78 as compared to Rs 3.57 in Q3FY17, driven by higher fuel cost and interest cost. Margin per ASKM (RASK-CASK) was strong at Rs 0.43, as compared to Rs 0.28 in Q3FY17.
It remains positive on the stock given its ability to maintain high load factor and continued focus on cost along with sector tailwinds. Further, new generation aircraft would help in further lowering of cost.
It expects near term pressure on profitability due to sustained higher crude prices (Hovering in USD 66-70/bbl range). However, it expects the prices to soften.
12:10 pm Market Outlook: Call writers in the Nifty have been rolling their positions lower, which suggests increasing pressure on the index as we are approaching settlement. Profit booking is seen in 10900 Call writing positions. These are getting formed at 10500-10600 Call strikes, ICICIdirect said.
Volatility has remained at elevated levels, leading to more volatile sessions. In previous months, average volatility levels were seen at 11-12 percent. It has moved up to 18-20 percent, which is substantially higher, it added.
The cool-off in this volatility pattern would be the major trigger for the Nifty rise, it feels.
Here are the top headlines at 12 pm from Moneycontrol News’ Anchal Pathak
11:55 am Market Update: Dalal Street is in tight bear grip as the Sensex traded below 34,000 levels, falling over 500 points.
Broader markets continued to outperform frontline indices, with the Nifty Midcap index falling half a percent.
All sectoral indices are trading in the red, with the Bank, Auto, FMCG, IT and Pharma indices falling 1-2 percent.
10:40 am Buzzing: Fortis Healthcare gained as much as 24 percent in early trade after Singh brothers resigned from directorships of the company, but stock came off day’s high to trade with 10 percent gains after agencies told CNBC-TV18 that Singh brothers are said to have taken USD 78 million out of firm.
Singh brothers are said to be working working to pay back money.
Deloitte is said to have refused to certify company’s Q2 results.
11:25 am Crude Update: Crude oil futures fell by 0.76 percent to Rs 3,901 per barrel today as speculators cut down their bets amid a weak trend in global markets.
At Multi Commodity Exchange, crude oil for delivery in February traded Rs 30 or 0.76 percent lower at Rs 3,901 per barrel in 2,740 lots.
The trading sentiment dampened in futures trade after oil prices fell for a sixth day as Iran announced plans to boost production and US crude output hit record highs, adding to concerns about a sharp rise in global supplies, analysts said.
The falls come amid a rout in global share markets as inflation fears grip investors.
11:15 am Market Update: Frontline indices were trading near day’s low in late morning deals as the Sensex was down 517.63 points or 1.50 percent at 33,895.53 and the Nifty fell 163.50 points or 1.55 percent to 10,413.40.
The broader markets continued to outperform, with the Nifty Midcap falling only 0.6 percent. About 1,529 shares declined against 839 advancing shares on the BSE.
Banks, technology and oil & gas stocks drove the market lower while metals stocks outperformed.
11:05 am Stake Sale: Utility vehicle and tractor maker Mahindra and Mahindra said it would sell partial stake in Mahindra Sanyo Special Steel for Rs 146.3 crore.
Post stake sale, its shareholding in Mahindra Sanyo will come down to 29 percent from 51 percent.
10:55 am Poll: Public sector lender Bank of India is likely to post net loss at Rs 51.5 crore for quarter ended December 2017 against net profit of Rs 101.7 crore in same quarter last year.
Net interest income during the quarter is seen falling 1.3 percent to Rs 2,826.6 crore compared to Rs 2,862.6 crore in year-ago, according to average of estimates of analysts polled by CNBC-TV18.
Analysts said if slippages in Q3 fall further (from Rs 2,141 crore in Q2FY18), net interest margin come above 2.1 percent (2.15 percent in Q2) and gross non-performing assets improve (from 12.62 percent in Q2) then that would be taken positively by the Street.
10:46 am Top gainers: Out of Nifty 50 stocks, 47 stocks continued to trade in the red.
Three stocks, which bucked the trend, are Tata Steel (up over 1 percent), Lupin (up 1 percent) and Coal India (up 0.7 percent).
10:40 am US Shutdown: The US government today was assured of careening into a shutdown at midnight after the Senate adjourned with no vote on a measure to extend federal funding beyond the 12:00 am deadline.
The upper chamber of Congress struggled to overcome roadblocks to passing a government funding bill and budget plan when a conservative senator objected to a swift vote, and leadership opted to close up shop and then reopen at 12:01 am (0501 GMT).
The closure could ultimately be shortlived, as the Senate was expected to schedule a vote on the measure at 1:00 am and, if it passes, send it to the House of Representatives and then on to President Donald Trump’s desk for his signature as early as tomorrow.
10:25 am Market Update: Benchmark indices continued to trade lower in morning, with the Sensex falling 439.82 points or 1.28 percent to 33,973.34, and the Nifty declining 133.90 points or 1.27 percent to 10,443.
About 1,405 shares declined against 803 advancing shares on the BSE.
10:20 am Crude Oil falls further: US oil prices fell for a sixth day after Iran announced plans to boost production and US crude output hit record highs, adding to concerns about a sharp rise in global supplies.
The falls come amid a rout in global share markets as inflation fears grip investors.
US West Texas Intermediate (WTI) crude was down 60 cents, or 0.98 percent, at USD 60.55. On Thursday, it closed down 64 cents, or 1 percent, to settle at $ 61.15, its lowest close since January 2.
Brent crude futures were trading at USD 64.38 a barrel, down 43 cents or 0.66 percent. On Thursday, Brent fell 70 cents, or 1.1 percent, to settle at USD 64.81 a barrel, their lowest close since Dec. 20.
10:07 am Market Outlook: Pradip Shah, IndAsia Fund Advisors told CNBC-TV18 that reaction to markets could be sentimental due to upcoming state elections.
He is very optimistic about Indian markets despite current fall. The Sensex fell more than 2,000 points from its record highs.
“We will see drop in stock prices till March 2018 and the selling pressure is inevitable,” he said.
9:58 am Asia Update: China’s stock market benchmark plunged 5.5 percent and other Asian markets were off sharply after the Dow Jones industrials on Wall Street plummeted more than 1,000 points, deepening a week-long sell-off.
Asian markets followed Wall Street down after the Dow entered correction” territory for the first time in two years.
The Shanghai Composite Index dipped 5.5 percent but recovered slightly to end morning trading down 4.1 percent at 3,127.91. Tokyo’s Nikkei 225 was off 3 percent and Hong Kong’s Hang Seng fell 3.3 percent.
Benchmarks in Australia, South Korea and Southeast Asia also retreated.
Financial analysts regard corrections as a normal market event but say the latest plunge might have been triggered by a combination of events that rattled investors. Those include worries about a potential rise in US inflation or interest rates and whether budget disputes in Washington might lead to another government shutdown.
9:54 am Poll: Country’s largest lender State Bank of India’s Q3 standalone profit is seen falling 29 percent year-on-year to Rs 1,853. 7 crore, compared to Rs 2,610 crore in year-ago
Net interest income, the difference between interest earned and interest expended, may grow 23.1 percent to Rs 18,152.7 crore for quarter ended December 2017 compared to Rs 14,751.5 crore in same quarter last year, according to average of estimates of analysts polled by CNBC-TV18.
On sequential basis, profit may increase 17.2 percent and NII is seen falling 2.3 percent.
If there is lower trend of slippages in Q3 (compared to Rs 1,86,115 crore in Q2) and improvement in asset quality (from 9.83 percent in Q2) then that would be take positively by the Street.
9:49 am Market Update: Benchmark indices traded sharply lower as global indexes were under pressure on worries over interest rate hikes.
The Sensex fell 480 pts, but the fall in midcaps is less than frontline indices as the Nifty Midcap declined 0.7 percent.
All sectoral indices barring metals traded in the red. Tata Steel gains 2 percent ahead of Q3 earnings
9:36 am Demerger meet: Indiabulls Real Estate shares gained 3 percent as the company’s board meeting will be held on February 14 to consider demerger of residential and commercial business.
9:28 am Buzzing: SAIL gained 2.5 percent after the company turned profitable in Q3 with net at Rs 43 crore against loss of Rs 794.84 crore in year-ago.
Revenue from operations grew by 35.6 percent to Rs 15,323 crore YoY.
Operating profit stood at Rs 1,439.6 crore against loss of Rs 42.9 crore in same quarter last year.
9:21 am Earnings Reaction: Glenmark Pharma shares tanked 9 percent after company’s net profit dropped 78 percent to Rs 104.7 crore in the third quarter ended December – on plunging US sales, despite growth in domestic formulations and other geographies.
The company posted net profit of Rs 477.1 crore in the same period of previous year. The revenues declined 13.6 percent to Rs 2203.7 crore. A year ago it was Rs 2549.6 crore. On sequentially too, the net profit fell 51 percent.
To be sure the sales are not comparable to the corresponding quarter of the previous financial year as Glenmark was enjoying windfall gain from the 180-day marketing exclusivity for generic version of cholesterol lowering drug Zetia in US market.
The results were below analyst estimates. A CNBC-TV18 analyst poll projected net profit to be 228 crore and revenues at Rs 2241.4 crore.
“The overall performance was driven by our India, Europe, ROW and API business,” said Glenn Saldanha, Chairman and MD, Glenmark.
9:18 am Buzzing: Fortis Healthcare shares rallied 9 percent after Malvinder Singh and Shivinder Singh have tendered resignation from the directorships of the company.
9:15 am Market Opening: Benchmark indices opened lower, tracking weakness in global peers.
The 30-share BSE Sensex was down 526.26 points or 1.53 percent at 33,886.90, and the 50-share NSE Nifty fell 177.50 points or 1.68 percent to 10,399.40.
9:11 am Pre-Opening Trade: Benchmark indices settled the trade sharply lower in pre-opening as the Sensex was down 410.71 points or 1.19 percent at 34,002.45 and the Nifty fell 160.40 points or 1.52 percent to 10,416.50.
9:08 am IPO: Fine Organic Industries filed draft papers with markets regulator SEBI to float an initial public offering.
Established in 1970, the Mumbai-based firm is a leading producer of speciality additives for foods, plastics, rubbers, paints, inks, cosmetics, coatings, textile auxiliaries, lubes and several other speciality applications.
The initial public offer (IPO) will see sale of up to 76,64,994 equity shares by the existing shareholders, according to the draft prospectus filed with Securities and Exchange Board of India (SEBI).
The company said that listing will enhance its brand name and provide liquidity to the existing shareholders.
9:05 am Rupee Trade: The Indian rupee was trading at 64.39 to the dollar, down 13 paise compared to previous close.
9:03 am Pre-opening trade: Benchmark indices fell sharply in pre-opening trade, with the Sensex declining 256.57 points or 0.75 percent to 34,156.59, and the Nifty falling 125.50 points or 1.19 percent to 10,451.40.
9:01 am What to Buy in weak market: Ashwani Gujral of ashwanigujral.com told CNBC-TV18 that following stocks one can consider for trade today:
-Buy Biocon with a stop loss of Rs 600, target of Rs 650
-Buy Bharat Forge with a stop loss of Rs 750, target of Rs 775
-Sell PC Jeweller with a stop loss of Rs 387, target of Rs 370
-Sell Tata Motors DVR with a stop loss of Rs 215, target of Rs 200
-Sell Bharti Airtel with a stop loss of Rs 435, target of Rs 410
8:58 am Agreement: Alkem Laboratories has entered into an exclusive licensing deal with stem cell specialist Stempeutics Research to market latter’s osteoarthritis (OA) therapy Stempeucel in India.
As per the agreement, Alkem will get the exclusive marketing rights for Stempeucel, Stempeutics will manufacturing and supplying the product.
Alkem didn’t disclose financial details but has agreed for an upfront payment, royalties and various regulatory and sales-based milestones payments to Stempeutics.
The product is expected to be available in Indian market by 2020 after undergoing the Phase 3 clinical trial in India, which is expected to commence in 2018.
8:54 am Earnings: Private sector Dhanlaxmi Bank posted widening of net loss to Rs 21.7 crore for the quarter ended December 2017.
The bank’s net loss stood Rs 8.1 crore in the year-ago period.
Total income of the bank during October-December 2017-18 also declined to Rs 270.11 crore, down from Rs 290.22 crore a year-ago, the bank said in a regulatory filing.
There was an improvement in bank’s asset quality with gross non performing assets (NPAs) falling to 6.96 per cent of gross advances during the quarter, from 7.59 per cent a year ago.
During the quarter under review, net NPAs were 4.08 percent as against 2.90 per cent in the previous fiscal.
8:48 am Stocks in News: Here are stocks which will be in news today
Glenmark Pharmaceuticals Q3 net drops 78% to Rs 104.7 crore
Jaiprakash Power Ventures Q3 loss swells to Rs 194 crore
Coffee Day Enterprises Q3 net profit up 56.78% at Rs 31 crore
Aurobindo Pharma: The Company has fixed February 21, 2018, as the Record Date for the purpose of payment of second interim dividend.
Trent to raise funds through issue of commercial paper up to an amount not exceeding Rs 200cr
Mr. Malvinder Singh and Shivinder Singh have tendered resignation from the directorships of Fortis Healthcare
Indiabulls Real Estate to meet on Feb 14 in relation to demerger of residential and commercial biz
Indian Bank change in overnight MCLR for various tenors.
Vijaya Bank issue of equity shares to govt on preferential basis for an amount up to Rs 1277cr
Canara Bank to raise up to Rs 1000cr via rights issue
8:45 am Results Today: 262 companies are scheduled to report Q3 results today, including Alkem Laboratories, Apex Frozen, Avanti Feeds, Bank of Baroda, Bata India, BPCL, GSFC, HPCL, India Cements, Kitex Garments, M&M, Marico, Max Financial Services, Mahanagar Gas, MOIL, NALCO, Oil India, State Bank of India, SJVN, Sobha Ltd, Sun TV, Suzlon Energy, Syndicate Bank, Tata Steel and UCO Bank.
8:42 am What to buy in falling market: We spoke to Ways2Wealth Brokers and here’s what they have recommended:
ONGC: Buy around 185 – 180, Target 220, Stop loss 165. Timeframe 15 to 21 sessions| Return 17%
Dr. Reddys Laboratories: Buy Around 2175 – 2150, Target 2450, Stop loss 2005, Timeframe 15 to 21 trading sessions| Return 12%
MOIL: Buy around 235 – 232, Target 270, Stop loss 212, Timeframe 15 to 21 trading session| Return 15%
8:40 am F&O Cues: Maximum put OI of 58.85 lakh contracts was seen at strike price 10,500, which will act as a crucial base for February series, followed by 10,000, which now holds 56.16 lakh contracts and 10,300 which has now accumulated 39.84 lakh contracts in open interest.
Maximum Put writing was seen at the strike price of 10,500, which saw the addition of 9.53 lakh contracts, followed by 10,400, which added 6.21 lakh contracts and 10,300, which added 5.94 lakh contracts.
Put unwinding was seen at 11,000, which shed 0.97 lakh contracts, followed by 10,900, which shed 0.7 lakh contracts and 10,000, which shed 0.59 lakh contracts.
8:35 am Market Cues: The Nifty50 is likely to open with a gap on the lower side, tracking selloff on Wall Street, as well as other Asian markets, are also trading in the deep red. The Nifty closed 100 points higher at 10,576.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 241 points. Nifty futures were trading around 10,310-level on the Singaporean Exchange.
According to Pivot charts, the key support level is placed at 10,491.6, followed by 10,406.4. If the index starts to move higher, key resistance levels to watch out are 10,649.9 and 10,723.
The Nifty Bank closed at 25,920.65, up 0.98 percent. Important Pivot level, which will act as crucial support for the index, is placed at 25,663.27, followed by 25,405.83. On the upside, key resistance levels are placed at 26,152.27, followed by 26,383.83.
US stocks plunged around 4 percent on Thursday in another dramatic session, confirming a correction that has thrown the market’s nearly nine-year bull run off course.
Asian shares took a tumble early on Friday, taking cues from US indexes which extended sharp losses in the last session. Japan’s Nikkei 225 fell 2.95 percent in early trade, with losses seen in most sectors. The Kospi lost 2.16 percent, with most sectors trading in negative territory, CNBC reported.
8:29 am F&O cues: Maximum call open interest (OI) of 57.98 lakh contracts stands at strike price 11,100, which will be a resistance for the February series, followed by 11,000, which now holds 51.91 lakh contracts in open interest, and 10,700, which has accumulated 34.44 lakh contracts in OI.
Call writing was seen at the strike price of 10,900, which saw the addition of 2.58 lakh contracts along with 11,100, which added 2.37 lakh contracts.
Call unwinding was seen at the strike of 10,600, which shed 4.6 lakh shares, followed by 11,000 which shed 3.4 lakh contracts and 10.800 which shed 2.27 lakh shares.
8:15 am US 10-year bond yields: “US 10-year bond yields have touched 4-year high of 2.85% and are likely to breach psychologically important level of 3%. This has led to a sharp 500 plus point plunge in DOW as of now. And this is happening when the US FED hasn’t even started unwinding meaningfully it’s bloated balance sheet- Global Central banks have bought around USD 16 trillion of bonds to stabilise financial markets and kickstart growth post 2008 crisis, said Ajay Bodke, CEO & Chief Portfolio Manager PMS Prabhudas Lilladher.
“Trump’s USD 1 trillion infra build-up plan would add to worries about US fiscal deficit putting additional pressure on bond yields. Lastly, record-low jobless rate and high capacity utilization (or low slack) in the US economy has sparked worries about wages-led inflationary pressures forcing FED to slam the brakes by rapidly increasing interest rates.”
“Whispers of leveraged ETFs (triple or double leveraged) and ETNs lurking in the wings to trigger massive volatility and play a role akin to that played by leveraged mortgage backed securities (MBS) and other complex derivatives before Lehman crisis has started doing the rounds. As an equity investor, I think it’s time to be extremely vigilant,” he added.
8:10 am Gold prices surge: Gold prices edged up on Friday, recovering from more than one-month lows as tumbling equities markets pushed investors into safe-haven assets, but a firmer dollar and worries about rising global interest rates kept gains in check, report CNBC.
8:00 am Crude Check: US oil prices fell for a sixth day on Friday after Iran announced plans to boost production and US crude output hit record highs, adding to concerns about a sharp rise in global supplies.
The falls come amid a rout in global share markets as inflation fears grip investors, report CNBC.
7:50 am: The SGX Nifty is trading at 10,340.50, down 220.50 points.
7:45 am Asian shares plunge: Asian shares took a tumble early on Friday, taking cues from US indexes which extended sharp losses in the last session, reports CNBC. Japan’s Nikkei 225 fell 2.95% in early trade, with losses seen in most sectors.
Indian Indices are set to open sharply lower on the back of weak gloabal cues.
7:30 am US markets slip 4%: On Thursday US stocks plunged around 4 percent in another dramatic session, confirming a correction that has thrown the market’s nearly nine-year bull run off course.
The Dow Jones Industrial Average fell 1,032.89 points, or 4.15 percent, to 23,860.46, the S&P 500 lost 100.66 points, or 3.75 percent, to 2,581 and the Nasdaq Composite dropped 274.83 points, or 3.9 percent, to 6,777.16.