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3:30 pm Market Closing: The Sensex recovered more than half of losses, before closing down 561.22 points or 1.61 percent at 34,195.94 while the Nifty ended tad below 10,500 amid global rout.
The 50-share NSE index fell 168.20 points or 1.58 percent to close at 10,498.30.
Lupin and Tata Motors were biggest losers among Nifty 50 stocks, falling more than 5 percent post weak earnings.
NBFCs rebounded in late trade, with the Bajaj Finance rising nearly 4 percent.
3:28 pm Poll: Two-wheeler major Hero MotoCorp is expected to report a 4.6 percent growth year-on-year in third quarter profit at Rs 808 crore and 12.5 percent growth in revenue at Rs 7,165 crore, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit is seen rising 6.5 percent year-on-year to Rs 1,150 crore, but margin may contract 100 basis points to 16 percent in Q3.
Analysts expect a mixed bag for the company this quarter. Revenues may be strong due to 16 percent YoY increase in volumes.
Volumes increased to 17.09 lakh units from 14.73 lakh units YoY.
Higher raw material cost may impact margins this quarter while realisations may fall 3.8 percent YoY but flat QoQ at Rs 41,545 per unit.
3:19 pm Earnings: Natco Pharma’s Q3 net profit grew by 11.5 percent year-on-year to Rs 217.4 crore but revenue fell 16.1 percent to Rs 562.2 crore.
Operating profit jumped 10.1 percent to Rs 286.5 crore and margin expanded sharply by 1,220 basis points to 51 percent compared to year-ago.
3:15 pm Market remains under pressure: Benchmark indices remained under pressure, though there was recovery from day’s lows.
The 30-share BSE Sensex was down 618.46 points or 1.78 percent at 34,138.70 and the 50-share NSE Nifty fell 186.50 points or 1.75 percent to 10,480.
About four shares declined for every share rising on the BSE.
Also read – News Live: Govt sees no scope for further excise duty cuts on petrol, diesel for now, sources say
3:10 pm Stocks at 52-week highs: As the market rout continued, some stocks still managed to make gains, with over 30 companies hitting their 52-week high levels today.
The BSE Sensex cracked below the 34,000-mark by plunging about 1,275 points or 3.6 percent in opening trade today mainly due to sell-off in world markets.
However, during the late trading session, the index managed to recover some of the lost ground.
As many as 32 stocks hit their 52-week high on BSE today, including Polaris Consulting & Services.
Here are the top headlines at 3 pm from Moneycontrol News’ Sakshi Batra
3:05 pm Earnings: Leading steel wheels manufacturer, Wheels India Ltd has recorded a marginal slip in the net profits for the third quarter ending December 31, 2017 at Rs 12.91 crore.
The city-based TVS Group company had registered net profits at Rs 14.32 crore during corresponding period of last year.
Revenues for the October-December 31, 2017 was at Rs 592.86 crore as against Rs 578.54 crore, registered during same period of last year.
2:57 pm Earnings: Lupin’s third quarter earnings disappointed analysts on Tuesday as consolidated profit fell sharply by 65 percent year-on-year to Rs 221.7 crore due to continued pricing pressure in the US and weak operational performance.
Profit during the year-ago period was at Rs 633.11 crore, the company said.
Revenue from operations, which came in line with estimates, fell 11.3 percent to Rs 3,976.6 crore compared to Rs 4,482.9 crore in same quarter last year.
Profit was expected at Rs 426.6 crore on revenue of Rs 3,935.4 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
2:48 pm FII View: Jonathan Garner of Morgan Stanley said markets are back below our base case targets but we think valuations, earnings and euphoric investor sentiment will adjust more meaningfully before we see a trough.
Podcast: Market bloodbath continues, wipes off investor wealth by Rs 9.6 lakh crore
2:40 pm Risk management and surveillance systems: Capital markets regulator Sebi and the exchanges have beefed up their risk management and
surveillance systems in the wake of a global stock market rout triggering a sharp plunge in Indian equities, officials said today.
They are also keeping a strict vigil for any possible manipulation as also against the rumour mongers, the officials said, as the benchmark indices Sensex and Nifty crashed with close to Rs 10 lakh crore getting wiped off from the investors’ wealth in just three days.
“The risk management systems are working fine and we are keeping a close watch,” a senior official said, adding that the plunge mostly reflected the global headwinds as all major markets including in the US, Europe and Asia have fallen sharply.
2:27 pm Recovery continues: The market recovered sharply from day’s low, led by private banks like ICICI Bank (up 2 percent) and Axis Bank (up 1.4 percent).
The 30-share BSE Sensex was down 264.33 points or 0.76 percent at 34,492.83 and the 50-share NSE Nifty fell 83 points or 0.78 percent to 10,583.50.
About five shares declined for every share rising on the BSE.
2:21 pm SEBI to MFs: Pushing for uniformity in disclosures, Sebi has asked mutual fund houses to prominently disclose on a daily basis the total expenses charged to customers for all schemes under a separate head on their websites.
The markets regulator also asked them to communicate to investors any change in the base Total Expense Ratio (TER) of the scheme through email or SMS at least three working days prior to effecting such change.
The TER is a percentage of a scheme’s corpus that a mutual fund house charges towards expenses including administrative and management.
The move comes after Sebi observed that there are frequent changes carried out in total expense ratio and such changes are not prominently disclosed to investors.
2:18 pm Earnings: Apollo Tyres today reported 17 percent decline in consolidated net profit at Rs 245.29 crore for the quarter ended December 31, 2017.
The company had posted a net profit of Rs 295.69 crore during the October-December period of previous fiscal, Apollo Tyres said in a regulatory filing.
Total revenue during the quarter under review stood at Rs 4,096.44 crore. It was Rs 3,740.77 crore in the corresponding period of previous fiscal.
The company said revenue for the quarter and nine-month period ended December 31, is not comparable on account of GST implementation.
2:10 pm Market turns positive for 2018: The recovery from day’s low helped the market turn positive for 2018.
The 30-share BSE Sensex shed 1,274 points in opening, but showed some recovery in afternoon. The index fell 462.78 points or 1.33 percent to 34,294.38 and the Nifty slipped 136.70 points or 1.28 percent to 10,529.80.
Bajaj Finance, Eicher Motors and Bharti Airtel rebounded with more than 1 percent gains, followed by L&T, ICICI Bank, Tata Steel and Dr Reddy’s Labs with moderate gains.
2:06 pm Import Duty: The government has doubled import duty on sugar to 100 percent, reports CNBC-TV18 quoting Cogencis.
Here are the top headlines at 2 pm from Moneycontrol News’ Anchal Pathak
1:58 pm Market Update: Benchmark indices recouped half of losses in afternoon, with the Sensex falling 633.96 points or 1.82 percent to 34,123.20 and the Nifty declining 186.20 points or 1.75 percent to 10,480.30.
The market breadth also gradually showed improvement, with more than six shares falling for every share rising on the BSE.
Eicher Motors and Bajaj Finance rebounded on short covering, rising over a percent.
1:46 pm Govt consolidated direct tax reforms: A large number of taxpayers have been brought into the net taking the total base to 8 crore, CBDT chairman Sushil Chandra said today, underlining that the government has consolidated direct tax reforms.
Chandra also said that no I-T official can pick up a case on his discretion and only 0.5 per cent of all cases are picked up for scrutiny by the Income Tax Department.
“In direct taxes, lots of reforms have been done and we have consolidated direct tax reforms… Taxpayers net has gone up. We have added large number of taxpayers. Our taxpayers’ base is now 8 crore,” he said at an event organised by industry body Assocham.
SGX Nifty 10,330 – more panic after US sell-off!
Just sent this message to our PMS investors: pic.twitter.com/nZJbVg7gU7— Porinju Veliyath (@porinju) February 6, 2018
1:39 pm Europe Trade: European stocks tumbled at the start of today’s trading session, on the back of heavy declines seen in Asia and the US
Britain FTSE was down 2.64 percent and France CAC plunged 3 percent.
On Wall Street, the Dow Jones industrial average dropped 1,175.21 points to close down at 24,345.75 on Monday — having briefly declined by more than 1,500 points during the session. US futures extended losses on Tuesday overnight. Meantime in Asia, indexes posted massive losses as the global sell-off continued.
The sell-off kicked into action on Friday, after the latest non-farm payrolls report in the US saw interest rates on sovereign debt jump. While there was no particular piece of news that pushed major US indexes deep into the red on Monday, the recent moves in the bond market have added volatility and concern to market sentiment.
1:28 pm Earnings: Public sector lender Bank of Maharashtra disappointed analysts with its third quarter earnings performance as net loss during October-December period widened to Rs 596.7 crore from Rs 182.5 crore reported in year-ago.
Higher provisions, lower other income & operating income hit profitability in Q3.
Net interest income, the difference between interest earned and interest expended, grew by 21.4 percent year-on-year to Rs 852.6 crore for quarter ended December 2017.
On asset quality front, gross non-performing assets as of December 2017 were higher at 19.05 percent compared to 18.54 percent as of September 2017, but net NPAs were lower at 12.17 percent from 12.68 percent on sequential basis.
1:18 pm Erosion in Investors’ Wealth: Stock market bloodbath has wiped out a staggering Rs 9.6 lakh crore from investor wealth in three days with the rout continuing amid sell-off in world markets.
The BSE benchmark Sensex slumped 1,274.35 points to hit the day’s low at 33,482.81 today.
Post the Union Budget on February 1, the 30-share index has plummeted by 2,164.11 points. Led by a continuous sell-off, the market capitalisation of BSE-listed companies went down by Rs 9,60,938 crore to Rs 1,43,39,062 crore in three days.
“The crash in the mother market – the Dow plunging by 2,200 points in two days has unnerved equity markets globally. The sell-off in the US has led to a global sell-off. Indian market is in tune with global markets in this downturn,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
1:10 pm Earnings: Ramco Cements shares fell 3 percent as profit in Q3 declined 19 percent year-on-year to Rs 122.7 crore, with operating income falling 19 percent to Rs 240.4 crore and margin contracting 810 basis points to 22.6 percent.
However, revenue from operations grew by 10 percent to Rs 1,061.5 crore from Rs 965 crore YoY.
Here are the top headlines at 1 pm from Moneycontrol News’ Sakshi Batra
1:02 pm Fundraising: Country’s largest lender State Bank of India today said its Board will meet later this week to consider a proposal to raise Rs 8,800 crore from the government.
The bank said its Board will also consider implementation of reforms agenda for responsive and responsible public sectors banks (PSBs) of the government.
“The Central Board of the Bank at its meeting scheduled for February 9 will consider the proposal of raising equity capital by way of preferential allotment of equity shares of government of India to the tune of Rs 8,800 crore,” State Bank of India (SBI) said in a BSE filing.
The government on October 24 last year had unveiled a Rs 2.11 lakh crore two-year road map for strengthening NPA-hit PSBs, which includes re-capitalisation bonds, budgetary support and equity dilution.
12:52 pm Stocks at 52-week lows: The mayhem in the market today pulled down nearly 200 stocks to their respective one-year low levels on BSE with benchmark Sensex nosediving nearly 3.6 percent in early trade.
Around 188 stocks including Aditya Birla Capital, Andhra Bank, Bajaj Hindusthan Sugar, BGR Energy Systems, Central Bank of India, Cummins India, Godfrey Phillips India, hit fresh 52-week lows on BSE as the Sensex lost about 1,275 points due to across-the-board losses after investor sentiment was hit by a sell-off in world markets.
Hindustan Composites, India Cements, Kalyani Steels, Max India, Max Financial Services, Monnet Ispat & Energy, National Fertilisers, Orient Bank of Commerce, Tata Motors, Union Bank of India, Uttam Galva Steels, Welspun India also joined the bandwagon of stocks that hit new 52-week lows on the 30-share index.
Extending its falling streak for the sixth straight session, the Sensex fell by 1,274.35 points, or 3.66 percent, to 33,482.81 with all sectoral indices led by realty, consumer durables, metal and banking trading in the negative zone.
Following the downfall, the total market capitalisation of BSE listed companies stood at Rs 1,43,00,981 crore, down from Rs 1,47,95,747 crore yesterday.
12:40 pm Poll: The Reserve Bank of India will keep interest rates on hold through at least the middle of 2019 even though inflation is above its medium-term target and is expected to stay that way, a Reuters poll found.
A majority of economists also expect the central bank’s tone to turn hawkish when it announces its latest policy decision on Wednesday.
While retail inflation hit a 17-month high in December and is expected to remain above the RBI’s 4 percent target over the coming 12 months, growth in Asia’s third-largest economy likely slowed markedly in the fiscal year ending March 31, complicating the RBI’s policy path.
In a move that could push inflation higher in coming months, Finance Minister Arun Jaitley increased government spending for rural areas and announced a larger fiscal deficit target in his annual budget speech last week.
In the poll of 60 economists, taken after the budget announcement, 58 said the RBI would keep key rates unchanged – the repo at 6.00 percent and the reverse repo at 5.75 percent – when it meets on Wednesday. The other two forecast an increase.
12:30 pm Earnings: Punjab National Bank’s Q3 earnings missed analyst expectations, but asset quality improved over previous quarter.
Net profit at Rs 230.1 crore and net interest income at Rs 3,989 crore were below CNBC-TV18 poll of Rs 558.1 crore and Rs 4,122.9 crore, respectively.
Gross non-performing assets were lower at 12.11 percent compared to 13.31 percent in previous quarter. Net NPAs als improved to 7.55 percent from 8.44 percent on sequential basis.
The stock fell nearly 4 percent.
12:25 pm Advise in falling markets: Hemang Jani, Head – Advisory, Sharekhan advises that if an investor has surplus funds and has a time frame of more than 12-24 months, this is the time to increase the allocation to equities, as there is a meaningful correction in the market after a long time.
Jani sees this as an opportunity for retail investors, as this is happening at a time when earnings growth revival is seen across companies after a gap of almost 3 years.
Some of the companies like Maruti, Escorts, HDFC, HDFC Bank, L&T, JSW Steel that have reported good numbers this quarter and has upside potential of more than 15 percent can be looked at in the positive light, he said.
12:16 pm Market Outlook: The crash in the mother market – the Dow Jones plunging by 2,200 points in 2 days- has unnerved equity markets globally. The sell-off in the US has led to a global sell off.
Vijayakumar said Indian market was in tune with global markets in this down turn. In India also valuations are high, particularly in mid and small caps.
The 30-share BSE Sensex fell 1,274.35 points in opening, following global fall. It was down 1,028.07 points or 2.96 percent at 33,729.09 and the Nifty lost 311.30 points or 2.92 percent to 10,355.20.
About 10 shares declined for every share rising on the BSE. The Nifty Midcap index was down 3 percent and BSE Smallcap index shed 3.7 percent.
This is not the time to make aggressive purchases in the market, he advises.
“But this is the right time to churn the portfolio in favour of quality stocks. Investors should not panic and stop SIPs,” he said.
12:09 pm Poll: Pharma major Lupin is expected to report a 32.6 percent decline year-on-year in profit at Rs 426.6 crore for December quarter ue to continued pricing pressure in the US.
Revenue from operations during the quarter is seen falling 12.2 percent to Rs 3,935.4 crore from Rs 4,483 crore, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit is likely to decline 31.3 percent year-on-year to Rs 835 crore and margin may contract 592 basis points to 21.2 percent for quarter ended December 2017.
12:01 pm Finance Secretary on market crash: The government will look into what it can do after a slump in local market reflecting global sell off, the finance secretary said on Tuesday.
Hasmukh Adhia said he will discuss the issue of fall in local markets with Finance Minister Arun Jaitley.
When asked if the government will scrap or review the long term capital gains tax which was introduced last week in the federal budget, Adhia said the local markets are mimicking global weakness, “but the government will look into what it can do”.
Indian shares on Tuesday slid more than 3 percent and the rupee weakened as a global market rout whacked sentiment, adding to existing investor concerns ahead of a central bank meeting this week and a new capital gains tax later in the year. (Reuters)
Here are the top headlines at 12 pm from Moneycontrol News’ Anchal Pathak
11:55 am Top Midcap Losers:
11:50 am Fitch on India: The deferral of fiscal consolidation roadmap has left the task of strengthening weak public finances to the next government after the 2019 general elections, Fitch Ratings said today.
The government has revised its 2018-19 fiscal deficit projections to 3.3 percent of GDP and for current fiscal to 3.5 percent of GDP, compared with original targets of 3 percent and 3.2 percent, respectively.
The postponement of consolidation in part reflects policies to support the economy, which was held back last year by weak investment and disruptions from demonetisation and the introduction of the Goods and Services Tax (GST), Fitch said.
11:42 am Technical Outlook: “Key resistance level that stands out is what was a major support util now is 10450. A close above this might signal the end of the current bout of selling,” Kunal Saraogi, CEO Equityrush.com told Moneycontrol.
“Support exists at 10100. This level is pretty important and save a major meltdown is likely to hold. There are no credible supports between 10100 and 10450,” he said.
11:31 am Market plunge washes away Rs 4.95 lakh cr investor wealth: Investors lost around Rs 4.95 lakh crore amid sell-off in the broader market today where the benchmark BSE Sensex tumbled 1,275 points or 3.6 percent in opening trade.
The BSE Sensex cracked below the 34,000-mark by plunging about 1,275 points or 3.6 per cent in opening trade today due to across-the-board losses after investor sentiment was hit by a sell-off in world markets.
Following the downfall, the total market capitalisation of BSE listed companies eroded by Rs 4,94,766 crore to Rs 1,43,00,981 crore.
Extending its falling streak for the sixth straight session, the 30-share index fell by 1,274.35 points, or 3.66 percent, to 33,482.81 with all sectoral indices led by realty, consumer durables, metal and banking tradings in the
negative zone.
11:21 am What to expect from RBI Policy: The Reserve Bank of India will announce its monetary policy review on Wednesday.
CARE Ratings feels the Monetary Policy Committee is likely to maintain status quo on interest rates with the tone turning slightly hawkish given the conditions relating to future inflation.
Higher oil prices (Brent is up by around USD 7-8/bbl since last Policy announcement) will be the main concern going ahead while the lower inflation indices in the past will add to the base effects which will put pressure on the inflation rate in the coming year.
The fact that the Budget has not increased subsidies on fuel or indicated lower duty rates on oil products points to higher WPI and CPI inflation in case global crude prices rein high.
CPI inflation for December was at 5.2 percent. The higher fiscal deficit numbers for FY18 and FY19 would also be inputs that would go into the inflation expectations for the next year.
There could be some change mentioned on inflation for FY18 which will be in the range of 4.5-5 percent. However, the projection on GVA is not expected to change this time, according to the rating agency.
11:08 am Rupee Trade: The rupee fell by 20 paise to hover near one-and-a-half-month low at 64.26 against the US currency in late morning on sustained bouts of dollar demand from importers and banks amid sell-off in local equities.
The rupee opened sharply lower at 64.35 per dollar as against yesterday’s closing level of 64.07 at the inter-bank foreign exchange here.
It plunged further to 64.40 taking cues from weak domestic equities reacting to global sell-off.
11:01 am India VIX increased further, rising 32.11 percent to 21.2075, indicating too much volatility going ahead.
11:00 am Top contributors: In Nifty50, not a single stock is trading in the green. HDFC Bank, HDFC, Reliance Industries, ICICI Bank, Tata Motors, ITC and L&T are top contributors to the fall, sinking 2.5-6 percent.
10:56 am India’s gold demand: India’s gold demand grew by 9.1 percent to 727 tonne in 2017 due to low prices coinciding with Dhanteras, positive economic backdrop and improved consumer sentiment especially in rural areas, according to a World Gold Council (WGC) report.
The total demand stood at 666.1 tonnes in 2016, WGC said in its latest Gold Demand Trends report.
“The demand was mainly driven by jewellery, which grew as GST stabilised, stock markets performed well and GDP growth leading to better economy and consumer sentiment, particularly in the rural areas, as the effect of demonetisation wore off,” WGC Managing Director, India, Somasundaram PR told PTI.
10:49 am Buzzing: Vakrangee continued its downtrend for another session, falling 10 percent, taking seven consecutive days loss to more than 60 percent.
10:40 am Bitcoin falls further: Bitcoin plunged 20 percent to a three-month low today, its latest sharp loss following a series of setbacks for the cryptocurrency that, with a collapse across global mainstream markets adding to the selling.
The virtual currency fell to USD 6,190 for the first time since mid-November, according to Bloomberg News, and represents the latest hammering for a unit that saw a stratospheric 26-fold rise last year.
Today’s collapse comes just six weeks after bitcoin hit a record high of USD 19,511, fuelled by a flood of speculators looking to make a quick buck, with warnings it could fall another 50 percent.
10:25 am Asia Trade: Asian stocks plunged today after a record-breaking loss on Wall Street, extending a global rout as panicked investors fret over rising US borrowing costs and cash in profits after months of market euphoria.
Tokyo led a collapse throughout the region, diving 6.5 percent, while Hong Kong was down almost 5 per cent and Sydney sank 3.5 percent.
Dealers tracked their colleagues in New York, where the Dow suffered its worst points fall in history, wiping out all its 2018 gains, while the S&P 500 also took a beating to sit down for the year.
The heavy selling comes after months of surges fuelled by optimism over the US economy, corporate earnings and the global outlook.
10:16 am Market Outlook: I think there may not be big correction as value is concerned. Market may find good value with another 200-300 points correction on the Nifty. Currently market is trading at 17-18 PE FY19 and 15-16 PE FY20.
He feels it is a good time to start nibbling, adding quality stocks and even good time for long term investors who missed the bus earlier.
Here are the top headlines at 10 am from Moneycontrol News’ Anchal Pathak
10:04 am The Sensex wiped out 3,000 points and Nifty about 800 points from record highs.
The market turned negative in year-to-date performance due to today’s brutal sell-off.
9:59 am Market Update: Benchmark indices are not showing any sign of recovery, with the Sensex falling 1,053.92 points or 3.03 percent to 33,703.24 and the Nifty down 318.30 points or 2.98 percent at 10,348.20.
Jain Irrigation hit day’s low, falling nearly 9 percent. Just Dial was down 7 percent.
Next one hour will be critical for leveraged positions as margin calls may get triggered. Mood remained cautious given sharp global sell-off.
DIIs are selectively buying into largecaps due to brutal sell-off.
9:50 am Finance Ministry Official reaction: “We can’t attribute domestic share market fall to LTCG tax levy alone. Domestic share market is mimicking weakness in global equity markets,” Finance Ministry Official said.
The ministry is hopeful that domestic share market will stabilise soon.
9:44 am All sectoral indices traded in the red as Nifty Bank, Auto, FMCG, IT, Metal, Pharma and Realty indices fell 2-5 percent while Nifty Midcap was down 3.7 percent.
9:40 am VIX: Nifty Volatility index shot up 28.46 percent to 20.6225.
India VIX indicates the investor’s perception of the market’s volatility in
the near term.
A high India VIX value would suggest that the market expects significant
changes in the Nifty, while a low India VIX value would suggest that the
market expects minimal change. It has also been observed that
historically, a negative correlation exists between the two. Volatility
indices like India VIX are often perceived to display mean reverting
characteristics by oscillating around a long-term variance.
Volatility indices enable market participants to trade expected changes
in market volatility in a single transaction. Investors expecting rising
volatility levels will go long, whereas investors expecting decline in
volatility will go short.
9:36 am Market Outlook: Sanjay Mookim of Bank of America Merrill Lynch said earnings for FY19 are expected to be better than FY18 as turmoil seen (due to GST, demonetisation) in last two years will not be repeated going ahead.
The market rallied in the year gone by was on the back lower cost of capital. But now one should be careful on equity, keep wait and watch approach, he said.
He feels low PE stocks will do better in falling market.
He sees fair value of Sensex at 32,000, which indicates little bit of downside from here on. Now reversal of cost of capital is playing for the market.
He is hoping that rural India will look better given the government’s focus in Budget 2018. Hence, two-wheeler, cement, tractors and staples sectors will be better in growth.
9:30 am Market Update: Benchmark indices recouped some opening losses, with the Nifty getting back above 10,400 levels on short covering in heavyweights.
The 30-share BSE Sensex was down 873.06 points or 2.51 percent at 33,884.10 and the 50-share NSE Nifty fell 261 points or 2.45 percent to 10,405.50.
About 13 shares declined for every share rising on the BSE.
9:25 am Market Outlook: Sanjay Mookim of Bank of America Merrill Lynch said the research house remained bullish on Indian economy, earnings are set to recover in FY18, inflation is set to rise, which all means the cost of capital will go up and easy liquidity will go off a bit from here on.
9:20 am Edelweiss on Colgate: Colgate Palmolive’s 18.7 percent YoY revenue growth in Q3FY18 was in line, whereas EBITDA/PAT growth of 31.9/33.5 percent YoY surpassed estimates.
After 4 quarters of volume decline, volumes during the quarter jumped 12 percent YoY, largely aided by a weak base of -12 percent and increasing focus on naturals portfolio.
Though the volumes during the quarter have rebounded, we would closely monitor the volume trajectory coupled with market share (MS) data (30bps and 170bps MS loss on QoQ and YoY basis) considering competition from Patanjali, Dabur and now HUL (entered with Lever Ayush) is only heating up. As we roll over to FY20, we arrive at target price of Rs 1,200 (earlier Rs 1,074) and maintain ‘Hold’.
9:15 am Market Opens:At Benchmark indices crashed in opening, tracking weak lead from global peers.
The 30-share BSE Sensex was down 1,240.45 points or 3.57 percent at 33,516.71 and the 50-share NSE Nifty fell 369.60 points or 3.47 percent at 10296.90.
Tata Motors crashed 10 percent post earnings.
9:09 am Crude Update: Crude oil futures extended falls from the previous session on Tuesday, with the Brent benchmark dropping 1 percent as global financial markets headed south in the wake of Wall Street’s biggest one-day decline since 2011.
Brent crude futures were at USD 66.92 per barrel, down 70 cents, or 1.04 percent, from the previous close and more than USD 4 below their high point for 2018, hit last month.
US West Texas Intermediate (WTI) crude futures were at USD 63.42 a barrel. That was down 73 cents, or 1.14 percent, from their last settlement, and more than USD 3 off their 2018 high.
9:06 am Why higher wages are whacking global stock markets: After a decade of near zero real income growth across the developed world, workers may well be seeing wages rising again at last and global markets do not like it. Why?
The global stock market sell-off that followed news of a surge in US household earnings data on Friday appears counter-intuitive at first. After all, higher wages should mean more money for people to buy goods and services, boosting profits for firms making those goods and supporting the economic expansion.
But if rising wages cement expectations that long-absent inflation is returning to a booming world economy, then bond markets are already scrambling to price in the greater risk to future value fixed income returns over time, sending long-term bond yields higher to compensate. (Reuters)
9:02 am Rupee Update: The Indian rupee opened lower at 64.36 against the US dollar, down 29 paise or 0.46 percent from previous settlement.
9:00 am SGX Nifty: The SGX Nifty’s sharp fall of 378.50 points at 10,317 following global correction indicated that benchmark indices are set to open sharply lower.
8:58 am Corporate Buzz from CESC Research: Cochin Shipyard’s revenue grew by 5.7 percent YoY to Rs 615 crore for the Q3FY18. EBITDA stood at Rs 137 crore, up by 21.6 percent YoY. Net Profit stood at Rs 113 crore, up by 25.9 percent YoY.
Colgate-Palmolive reported a rise of 33.50 percent YoY in its net profit at Rs 170 crore for the Q3FY18. Its total income was up 4.01 percent YoY to Rs 1,042 crore.
Tata Motors’ consolidated revenue were 16 percent YoY higher at Rs 74,156 crore. Standalone revenues were up 58 percent YoY at Rs 16,102 crore, while JLR revenues were up 4 percent YoY at GBP 6,310 million.
8:56 am FII View: Bob Doll, Nuveen AMC told CNBC-TV18 that this market will find a bottom soon as US growth story is intact.
“We would not make any changes to US’ rate increase expectations. We expect US Federal Reserve to hike rates three times this year,” he said.
He still assumes this is a bull market correction.
Geoff Dennis Head-Global Emerging Market Strategy, UBS said CBOE VIX may have reached its peak. US economy is still very strong. “We like Korea, Russia; we are little cautious on India.”
8:54 am Insider Sell on Monday:
8:52 am Maximum Put OI: Maximum put OI of 60.7 lakh contracts was seen at strike price 10,500, which will act as a crucial base for February series, followed by 10,700, which now holds 38.65 lakh contracts and 10,600 which has now accumulated 37.5 lakh contracts in open interest.
Maximum Put writing was seen at the strike price of 10,600, which saw the addition of 11.34 lakh contracts, followed by 10,400, which added 8.4 lakh contracts and 10,200, which added 7.6 lakh contracts.
8:50 am Volatility: An exchange-traded security which is supposed to be a bet on calm markets was collapsing after hours.
The VelocityShares Daily Inverse VIX Short-Term exchange-traded note (XIV) is down more than 80 percent in extended trading Monday. The security, issued by Credit Suisse, is supposed to give the opposite return of the Cboe Volatility index (VIX), the market’s widely followed turbulence gauge.
The VIX doubled during regular market hours Monday, causing obvious havoc for a product seeking to track its inverse return. Though, the XIV dropped just 14 percent during regular trading.
8:46 am Insider Buys on Monday:
8:44 am Crucial support level for Nifty: Following sell-off on Wall Street, Indian markets could come under tremendous pressure on Tuesday. Bears are likely to take control of D-Street and push the Nifty below its crucial support level placed at 10,500-10,550.
The Nifty50 could come breach its crucial support of 10,500 in the opening tick as SGX Nifty signals a fall of over 300 points. The crucial support level for the index stands at 100-days exponential moving average which stands at 10400, followed by 200-DEMA placed at 10,0024.
The maximum Put open interest stands at strike price 10,500, followed by 10,600 and 10,700. But, unfortunately, the Nifty could well hit 10,300 where the Put open interest stands at 22 lakh contracts.
Traders might have to rely on moving averages to identify support. One big support of 100-DEMA is placed around 10,400, followed by 200-DEMA which is placed at 10,024 levels.
8:40 am Technical Outlook: Ashwani Gujral of ashwanigujral.com said portfolio building should be done at around 9,500-10,000 levels as 9,500 could be reasonable support for the Nifty but now one should not expect too much support.
Opening 370 points lower, indicated by SGX Nifty, is difficult to gauge the further fall. Dow futures are also indicating further sell-off.
8:30 am Earnings Review: Motilal Oswal said the Q3FY18 earnings season has so far been broadly in line with expectations on headline numbers. Of the 33 Nifty companies that have declared their earnings results, 23 have either met or exceeded our estimates.
For the MOSL Universe, sales, EBITDA and PAT have grown 14.4 percent, 11.2 percent and 13.3 percent YoY, as against estimates of 14.4 percent, 10.0 percent and 12.5 percent, respectively.
For MOSL Universe ex-OMC, PSU Banks and Metals, sales, EBITDA and PAT have grown 11.2 percent, 10.7 percent and 7.3 percent, as against expectations of 10.5 percent, 10.4 percent and 8.2 percent, respectively. The other income component has come below expectations for most of the companies.
Sales, EBITDA and PAT for the 33 Nifty companies have grown at 13.3 percent, 9.4 percent and 14.1 percent, as against expectations of 14.2 percent, 9.4 percent and 11.9 percent, respectively.
Among the Nifty components, Bajaj Auto, Maruti Suzuki, NTPC, Kotak Mahindra Bank and ICICI Bank have missed our PAT estimates, while L&T, HUL, IOC, HCL Technologies and Tech Mahindra have surpassed our estimates.
Margin pressures are evident, given inflation in commodity prices and apparent reluctance to pass on price inflation in a ‘modest demand recovery’ environment.
8:22 am FII View: Arvind Sanger of Geosphere Capital Management said this time is more complicated for India due to inflation issue, RBI may be much more hawkish and long term capital gains coming at unfortunate time. So there could be slightly more deeper concerns for India but growth is hopefully getting back on track and December quarter earnings are little encouraging.
India will wind down soon, it is feeling the brunt of global correction.
India had great years, so wiping out that some outperformance.
Portfolio investors should start buying quality stocks, don’t go for bottom to buy.
8:13 am Gold Shines: All global markets caught in bear trap but only gold, which is always safe haven bet for investors, started inching higher.
US Gold futures gained 0.91 percent at USD 1,348.70 an ounce.
8:04 am NA Truck Orders: Bharat Forge and Ramkrishna Forging will be in focus today as North America January Class 8 truck orders shot up 116 percent year-on-year to 47,200 units, the highest since 2006.
7:55 am Why did the US stock market sell-off on Monday?: First, the slide in the US market wasn’t caused by anything fundamental. Two, dealers say some computer-programmed trading sent Wall Street into a bizarre tizzy. Three, fear brewed over a number of issues, with the biggest being trepidation about rising interest rates even though US government bond yields actually were lower on the day. Fourth, some dealers blamed the US Fed for the market breakdown, or least the mentality that led to the selling climate.
7:48 am The CBOE Volatility index (VIX), widely considered the best gauge of fear in the market, hit 37.32, up 115.60%.
7:34 am The SGX Nifty is currently trading at 10,370, down 3.04% or 325.50 points.
7:31 am Hong Kong’s Hang Seng Index falls 3.2% — more than 1,000 points — as sell-off continues into Asia: Asian indexes tumbled early on Tuesday, mirroring massive losses seen stateside in the last session when the Dow fell more than 1,100 points and the S&P saw its worst day in six years, reports CNBC. Japan’s Nikkei 225 was down 4.95% as stocks across sectors pulled back. Automakers, financials and technology names were lower in the morning, with Toyota down 3.77%.
Across the Korean Strait, the Kospi declined 2.26%. Blue chip technology names were lower, with Samsung Electronics and SK Hynix down 1.63% and 1.85% early in the session. Among automakers, Hyundai Motor traded briefly in positive territory, but later slipped 0.63%.
The Hang Seng Index was down 3.15% in early trade. On the mainland, the Shanghai composite slid 1.52% and the Shenzhen composite lost 1.78%.
7:30 am Dow, S&P 500 slumps over 4% each: US stocks plunged in highly volatile trading on Monday, with both the S&P 500 and Dow Industrials indices slumping more than 4%, as the Dow notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year, reports Reuters.
The declines for the benchmark S&P 500 index and the Dow Jones Industrial Average were the biggest single-day percentage drops since August 2011, a period of stock-market volatility marked by the downgrade of the United States’ credit rating and the euro zone debt crisis.
With Monday’s declines, the S&P 500 erased its gains for 2018 and is now down 0.9% in 2018. The Dow is down 1.5% for the year. The Dow Jones Industrial Average fell 1,175.21 points, or 4.6%, to 24,345.75, the S&P 500 lost 113.19 points, or 4.1%, to 2,648.94 and the Nasdaq Composite dropped 273.42 points, or 3.78%, to 6,967.53. At one point, the Dow fell 6.3% or 1,597 points, the biggest one-day points loss ever.
On Monday, the S&P 500 ended 7.8% down from its record high on January 26, with the Dow down 8.5% over that time. The declines come after the Dow and S&P posted their biggest weekly percentage drops since January 2016 last week, and the Nasdaq posted its biggest weekly drop since February 2016.
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