Key barometers snapped four-day rising streak on Wednesday, as weak global cues triggered profit selling in the domestic market. Selling in private banks put pressure on indices, while strength in auto shares provided supported.
Global stock markets came under selling pressure after US Treasury Secretary said that the United States would continue tariffs on Chinese goods until the completion of a second phase of a US-China trade agreement.
The Sensex and the Nifty opened lower and hit fresh intraday low in afternoon trade. Both the indices sharply pared losses in late trade as buying emerged at lower levels.
The barometer BSE S&P Sensex fell 79.90 points or 0.19% to 41,872.73. The index fell 304.52 points, or 0.73% to hit the days low of 41,648.11 in afternoon trade.
The Nifty 50 index fell 19 points or 0.15% to 12,343.30. The index fell 83.55 points, or 0.68% to hit the days low of 12,278.75 in afternoon trade.
In the broader market, the BSE Mid-Cap index rose 0.66% and the BSE Small-Cap index rose 1.04%. Both these indices outperformed the main stock indices.
The market breadth was positive. On the BSE, 1483 shares rose and 1046 shares fell. A total of 183 shares were unchanged.
In the past four trading sessions, the Sensex rose 2.78% and the Nifty advanced 2.80%.
The government will release Indias trade data for December 2019 at 18:00 IST today, 15 Wednesday 2019.
Indias trade deficit narrowed to $12.12 billion in November 2019 from $17.58 billion in the same month a year ago, as imports slumped 12.71% to $38.11 billion. Exports fell 0.34% to $25.98 billion.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.63% at 16:45 IST compared with 6.662% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.8375, compared with its close of 70.8775 during the previous trading session.
In the commodities market, Brent crude for March 2020 settlement fell 16 cents to $64.33 a barrel. The contract rose 29 cents or 0.45% to settle at $64.49 a barrel during the previous trading session.
Most European shares were trading lower while Asian stocks fell across the board on Wednesday as investors awaited the signing of an initial US-China trade deal, with sentiment somewhat dented by comments from the US Treasury Secretary.
The United States will maintain tariffs on Chinese goods until the completion of a second phase of a U.S.-China trade agreement, US Treasury Secretary Steven Mnuchin said on Tuesday, a day before the two sides are to sign an interim deal. If the president gets a Phase 2 in place quickly, hell consider releasing tariffs as part of Phase 2, Mnuchin reportedly said.
Trump is slated to sign the Phase 1 trade agreement with Chinese Vice Premier Liu He at the White House on Wednesday at 22:00 IST (1630 GMT). All aspects of the Phase 1 trade deal with China would be made public on Wednesday, except a confidential annex that will detail US products and services to be purchased by China.
In US, stocks posted a mixed finish on Tuesday as doubts about the extent of import tariff reductions in a trade deal with China saw equities retreat from fresh intraday records for the benchmark indexes.
Buzzing Indian Indices:
The Nifty Private Bank index fell 0.87% to 17,572.30. The index has fallen 1.34% in two trading sessions.
RBL Bank (down 1.98%), HDFC Bank (down 0.42%), ICICI Bank (down 0.38%), Federal Bank (down 0.27%) and Axis Bank (down 0.2%) declined. Kotak Mahindra Bank (up 0.01%) and City Union Bank (up 3.28%) advanced.
Yes Bank rose 3.24% on bargain hunting after a steep selling in the past three sessions. Shares of Yes Bank tumbled 18.50% in three sessions to Rs 38.55 on 14 January 2020, from its closing high of Rs 47.30 on 9 January 2020.
The bank announced post trading hours on Tuesday, 14 January 2020, that it will hold extraordinary general meeting on 7 February to seek shareholders nod to raise Rs 10,000 crore via combination of equity and debt.
Meanwhile, Yes Bank after market hours on Tuesday, 14 January 2020, said that it acquired 12,73,21,500 equity shares, or 29.97% equity, of Rosa Power Supply Company, a wholly owned subsidiary of Reliance Power, pursuant to invocation of pledge of shares.
The Rosa thermal plant (1,200 MW) at Shahjahanpur in Uttar Pradesh, owned by the Rosa Power Supply Company generated 4341 million units in the year ended 31 March 2019.
IndusInd Bank fell 5.44% to Rs 1400.60, extending losses for second consecutive session as spike in provisions and worsening asset quality concerned investors.
IndusInd Bank said its net profit rose 32% Rs 1300.20 crore in Q3 December 2019 from Rs 985.03 crore in Q3 December 2018. The banks net interest income jumped 34.35% year-on-year (YoY) to Rs 3074 crore in Q3 December 2019.
Employee costs jumped 21.69% to Rs 550.10 crore YoY. The banks provisions and contingencies (excluding tax provisions) jumped 72% to Rs 1043.45 crore in Q3 December 2019 over Q3 December 2018. The figure rose 41.44% in Q3 December 2019 compared with Rs 737.71 in Q2 September 2019.
The result was announced during market hours yesterday, 14 January 2020. Following the result announcement, the stock fell 3.85% to end at Rs 1,481.10 on Tuesday.
The Nifty Auto index rose 1.16% to 8,385.35. The index has risen 5.57% in five trading sessions.
TVS Motor (up 3.74%), Hero MotoCorp (up 2.58%), Tata Motors (up 2.32%), Ashok Leyland (up 1.35%), Maruti Suzuki India (up 1.27%), Mahindra & Mahindra (up 1.03%), Bajaj Auto (up 0.76%), Eicher Motors (up 0.63%) and Escorts (up 0.42%) advanced.
Wipro fell 3.50%. On consolidated basis, the IT major reported 3.79% decline in net profit to Rs 2,455.90 crore on 2.28% increase in revenue to Rs 15,470.50 crore in Q3 December 2019 over Q2 September 2019. IT services segment revenue rose 3.03% to Rs 15,100.60 crore crore in Q3 December 2019 over Q2 September 2019. In dollar terms, IT services segment revenue was at $2,094.8 million, a sequential growth of 2.2%.
The company expects revenue from IT services business to be in the range of $2,095 million to $2,137 million. This translates to a sequential growth of 0.0% to 2.0%.
Mindtree jumped 2.26% after consolidated net profit rose 45.92% to Rs 197 crore on 2.66% increase in revenue to Rs 1,965.30 crore in Q3 December 2019 over Q2 September 2019. Among verticals, while hi-tech and media grew by 15.2% on a year-on-year basis, banking, financial services and insurance (BFSI) rose by 7.7% during the quarter. The digital business moved up by 3.5% year-on-year in this period. The result was declared after market hours yesterday, 14 January 2020.
Tata Steel BSL added 0.16% after the company reported a consolidated net loss of Rs 501.50 crore in Q3 December 2019 as against a net loss of Rs 239.67 crore in Q3 December 2018. Net sales rose 1.82 to Rs 4736.78 crore in Q3 December 2019 from Rs 4652.16 crore recorded in Q3 December 2018. The result was announced after market hours yesterday, 14 January 2020.
Larsen & Toubro Infotech advanced 2.38% after consolidated net profit rose 4.6% to Rs 376.70 crore on 9.4% increase in revenue to Rs 2811.10 crore in Q3 December 2019 over Q2 September 2019. On year-on-year (YoY) basis, consolidated net profit inched up 0.32% while revenue expanded 13.68%. The result was announced during market hours today, 15 January 2020.
EBITDA grew 13.3% on quarter-on-quarter (QoQ) basis and 3.7% on year-on-year (YoY) basis to Rs 527.7 crore in Q3 December 2019. EBITDA margin rose to 18.8% in Q3 December 2019 compared with 18.1% Q2 September 2019.
Stocks in Spotlight:
Shares of Canara Bank rose 1.23% while those of Can Fin Homes fell 2.83%. Canara Bank called-off the proposed divestment of its entire 30% stake in its housing finance subsidiary, Can Fin Homes, which was under progress.
Larsen & Toubro (L&T) slipped 0.18%. The company said it won large orders from various business across the country. L&T classifies large orders between value of Rs 2500 crore and Rs 5000 crore.
Sun Pharmaceutical Industries rose 0.55%. The drug major and Rockwell Medical entered into a licensing agreement for commercializing Triferic, a proprietary iron replacement and haemoglobin maintenance drug, for treating anaemia in hemodialysis patients in India.
Capacite Infraprojects gained 0.98%. The construction company has received order from integrated unit (P.W ) division for a contract value of Rs 407.16 crore for construction of multi-storey super specialty hospital building at Sir J J Hospital Campus on EPC (engineering, procurement and construction) mode at Byculla in Mumbai.
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