US stocks fell more than 1% on Monday as investors worried about the economic fallout of the fast-spreading coronavirus outbreak in China that has prompted the country to extend the Lunar New Year holidays and businesses to close some operations.
The benchmark S&P 500 was jolted off record highs last week as China locked down several cities and curbed travel, reminding investors of the deadly SARS virus that killed nearly 800 people in 2002-03 and cost the global economy billions.
What’s next for D-Street after Monday’s 458-point fall?
One can expect Nifty to retest the previous downside gap support area in the 12,100-12,050 range in the short term (which was the opening upside gap of January 9). If the index manages to hold above the 12,100 level, we may see a pullback in the coming sessions. Nifty’s immediate support is in the 12,075-12,000 range, while resistance exists in the 12,175-12,230 range
- Rohit Singre, Senior Technical Analyst, LKP Securities
A long body of bearish candle was formed with a gap-down opening, which technically indicates resumption of weakness after a small upside bounce
- Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty is approaching its trendline support placed at 12,100, a breakdown of which could drag it below its recent low in the 12,080-12,040 zone. On the flip side, a sustained trade above the 12,150 level may trigger a short-covering rally to 12,210-12,280 zone. Moreover, Nifty ended trade below its 20-DMA i.e. 12,210 confirming immediate weakness. RSI is also approaching a neutral level at 50. A move below this level could intensify selling, as we approach the all-important Budget
Virus spreading in larger regions panicked most global markets. Indian market was no different. Elements in terms of profit booking also worked ahead of Budget
- Mayuresh Joshi, Head of Equity Research, William O'Neil
Nifty formed a Bearish Candle on the daily scale, as supply pressure emerged at higher levels. However, the index hovered near its crucial 5O-DEMA, which has been acting as support for past few sessions. Going forward, if Nifty fails to surpass the 12,150-12,200 zone, then it could drift towards the next major support in the 12,050-12,000 zone, while on the upside hurdle is seen at 12,200 and then 12,250 levels
Coronavirus outbreak in China took a toll on Indian equities as financials and metals bore the brunt of the selling. Only select pharmaceutical stocks gained, while the BSE smallcap index also closed in the green
- S Ranganathan, Head of Research, LKP Securities
Bears dominated the session, however, broader market were better placed. The pharma sector was buzzing with strong activity while metals witnessed sharp profit booking. The 12,100 zone remained crucial for the bulls to hold, as a decisive breach below the support zone would provide fresh momentum on the downside, and in that event, index can test 11,800 support zone
- Amit Shah, Technical Research Analyst, Indiabulls Ventures
Growing catastrophic effect of coronavirus is impacting the world financial markets, raising fears of a slowdown in the global economy. In India investors are turning cautious given selling pressure in the global market and big event risk of Budget announcement this weekend. A lot has been factored in the market about the wish list
- Vinod Nair, Head of Research, Geojit Financial Services
India's monthly palm oil imports from Malaysia could fall to the lowest level in nearly nine years in January as traders stopped buying the tropical oil from Kuala Lumpur following informal instructions from New Delhi, traders and refiners told Reuters.
Lower imports by India, the world's biggest palm oil importer, could weigh on Malaysian prices that have corrected nearly a tenth after hitting a three-year peak earlier this month.
Nifty Energy Index dips; GAIL down 2%
The Nifty Energy index was trading lower in Monday's afternoon session.
Shares of GAIL (India) (down 1.85 per cent), Indian Oil Corporation (down 1.5 per cent), Power Grid Corporation of India (down 1.35 per cent), HPCL (down 1.27 per cent), NTPC (down 1 per cent) were the top losers.
Maruti Suzuki Q3 results preview
Maruti Suzuki India is likely to post a double-digit growth in profit for the quarter ended December 31, on low base effect and stability in volumes. Increase in average selling prices is also expected to boost the company’s top line. The automaker will post its quarterly numbers on Tuesday.
Analysts said update on demand outlook and trends post festive season would be key monitorables.
Wockhardt reports quarter profit for first time in 3 years, sales down 17%
Price as on 27 Jan, 2020 02:21 PM, Click on company names for their live prices.
Air India along with Air India Express "great asset": Hardeep Singh Puri
Civil aviation minister Hardeep Singh Puri on Monday said Air India along with Air India Express is a "great asset", as the government came out with preliminary bid document for disinvestment of the national carrier.
The Minister of State for Civil Aviation said the successful bidder would continue to use Air India brand.
European shares slump as coronavirus fears worsen
European shares dropped sharply in early trading on Monday as growing concerns over the potential economic damage from a fast-spreading coronavirus sapped demand for riskier assets, Reuters reported.
Shalimar Paints hits 52-week high amid high volumes
Price as on 27 Jan, 2020 01:59 PM, Click on company names for their live prices.
Allcargo Logistics climbs 4%; surge in volume purely market-driven, company clarfies to BSE
Price as on 27 Jan, 2020 01:48 PM, Click on company names for their live prices.
Jaiprakash Power appoints RK Porwal as CFO; stock jumps 3%
Price as on 27 Jan, 2020 01:46 PM, Click on company names for their live prices.
BSE inks licensing agreement with ICE to use Brent index
BSE has signed a licensing agreement with Intercontinental Exchange (ICE) to use its Brent index as the settlement benchmark for the Indian bourse's rupee-denominated Brent futures contracts.
Clearly, there is anticipation leading up to the Budget and expectations are running high this time, given the fact that the economic growth has slowed down substantially and a lot is expected from this Budget as far as growth revival is concerned.
- Gautam Duggad, Head Of Research - Institutional Equities, Motilal Oswal Securities
PFC Chairman says co to borrow up to $13 billion from market in FY21
Price as on 27 Jan, 2020 01:20 PM, Click on company names for their live prices.
On the riskier assets front crude oil ( strong support zone $52.65)and base metals look to further go down. However if there is any positive news of containment of Coronavirus virus, it can trigger sharp short covering in riskier assets.
- Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Global stocks drop as new coronavirus fears escalate
Global shares slid on Monday as investors shunned equities on growing concerns over the scope of a China virus outbreak, with safe-haven assets such as the Japanese yen and Treasury notes in greater demand, Reuters reported. U.S. S&P 500 mini futures shed 1.2% in early Asian trade. The Nikkei futures traded in Chicago suggested Japanese shares are on course for a steep 2.0% decline.
Dr Reddy's hits 52-week high despite posting Q3 loss
Price as on 27 Jan, 2020 12:48 PM, Click on company names for their live prices.
Both debt and equity markets would be keenly watching out for the fiscal deficit number for FY21; given the deceleration in economic activities, fiscal slippage as permitted by the FRBM act would be a welcome move. Equity markets would also watch out for investments in infrastructure as it is seen as a drive to support rural consumption; higher rural spends would be seen positive for FMCG both staple and discretionary spends.
- Pankaj Bobade, Head of Fundamental Research, Axis Securities
Dr Reddy’s Q3 results: Pharma giant reports Rs 570 crore loss on impairment charge
Dr Reddy’s Laboratories on Monday reported a consolidated net loss of Rs 569.70 crore for December quarter compared with a profit of Rs 485.20 crore in the year-ago quarter.Analysts in an ET NOW had projected a profit of Rs 490 crore.Revenue for the quarter rose 14 per cent year-on-year to Rs 4,383.80 crore, the company said in a BSE filing. The company had reported sales of Rs 3850 crore in the same quarter last year.
Nifty Financial Services index down; HDFC dips 1%
The Nifty Financial Services index was down with its components trading lower in Monday's afternoon session.
HDFC Bank (down 1.64 per cent) , Kotak Mahindra Bank (down 1.52 per cent) , HDFC (down 1.35 per cent) , State Bank of India (down 1.22 per cent) , HDFC Life (down 0.71 per cent) were the top losers.
Anil Ambani-led companies drag lower
Price as on 27 Jan, 2020 11:47 AM, Click on company names for their live prices.
We reiterate our view that a decisive breakout above 12,400 would trigger a fresh surge in the Nifty else consolidation will continue. However, the support zone has shifted slightly lower to 12,100 and 11,900 levels. Since we’ve major events and data lined up, volatility is inevitable thus we suggest focusing more on risk management, especially for the leveraged trades. While the signals are mixed from the cyclical pack, defensive viz. pharma and FMCG are looking strong so plan your positions accordingly.
JSW Steel shares decline nearly 4% post Q3 results
Price as on 27 Jan, 2020 11:15 AM, Click on company names for their live prices.
DCB Bank gains as Q3 profit rises 12%
The private sector lender rose 2 per cent in Monday's trade after the bank reported an increase of 12.31 per cent in its net profit at Rs 96.70 crore for the third quarter ended December 2019. Its net profit was Rs 86.10 crore in the October-December period a year ago, DCB Bank said in a BSE filing. Net interest income increased 9.86 per cent to Rs 323 crore as against Rs 294 crore for the same period last fiscal year.
Lupin edges higher as Pithampur facilities complete successful MHRA inspection
Shares of Lupin edged 0.3 per cent higher after the drug maker said the UK Medicines and Healthcare products Regulatory Agency (MHRA), the regulatory agency of the United Kingdom, has completed the inspection at its three manufacturing plants in the country.
Bank of Baroda drops 3% on Rs 1,407 crore Q3 loss
Shares of the Bank of Baroda fell 3.2 per cent to Rs 92.55 after the lender reported a net loss of Rs 1,407 crore for the quarter ended December on account of higher provisioning for bad loans. The bank had reported profit after tax of Rs 436 crore in the same period last year.
Vodafone Idea drops as India Ratings, Crisil downgrade ratings on Rs 3,500-cr NCDs
Price as on 27 Jan, 2020 10:18 AM, Click on company names for their live prices.
Rupee slips 18 paise to 71.51 against dollar
The rupee opened on a weak note and declined by 18 paise to 71.51 against the US dollar in opening trade on Monday, tracking weak opening in domestic equities and strengthening of the American currency overseas. Forex traders said weak opening in domestic equities dragged the local unit, while easing crude prices and foreign fund inflows supported the rupee and restricted the downfall.
Start-up IPO Tranway Technologies kicks off
The initial public offer (IPO) by IT consulting services firm Tranway Technologies kicked off on Monday.
The company intends to raise Rs 4.2 crore by offering 42,40,000 fresh shares with a face value of Rs 10 each. The scrip will be issued at Rs 10 per share. Founded in 2015, Tranway Technologies is a provider of IT consulting services and emerging technology solutions. Besides, the company provides product development & support and IT & non-IT staffing solutions to enterprises.
ICICI Bank advances after strong Q3 results
ICICI Bank’s over two-fold jump in December quarter profit met Street estimates. While the gross stress pool for the bank went up, analysts said it was in line with industry trends. The private lender’s return on equity (ROE) at 14.7 per cent for the quarter was in fact best in 52 quarters, with many analysts betting on a re-rating on the stock going ahead. At 9.45 am, the scrip was trading 1.18 per cent higher at Rs 540.25 on BSE.
Ahead of Q3 results...
Price as on 27 Jan, 2020 09:29 AM, Click on company names for their live prices.
Pre-open session: Sensex drops 100 points, Nifty below 12,250; rupee trades at 71.46 against dollar
Singapore trading sets stage for gap-down start
Nifty futures on the Singapore Exchange traded 78.50 points, or 0.64 per cent, lower at 12,194, indicating a gap down start for Dalal Street.
Tech view: Nifty forms Bearish Engulfing candle
Analysts said the index has the potential to climb towards the 12,290-360 range, and even 12,400 level, in the coming days. But a Bearish Engulfing Candle on the weekly scale is looking worrisome and, thus, any upside may be vulnerable to selloff, they said.
Asian stocks tumble in early trade
Stocks tumbled on Monday as investors grew increasingly anxious about the economic impact of China's spreading virus outbreak. Japan's Nikkei average suffered a steep 1.8 per cent loss, on track for the biggest one-day fall in three weeks. US S&P 500 mini futures was last down 0.9 per cent, having fallen 1.3 per cent in early Asian trade. Trade in Asia has already slowed for the Lunar New Year and other holidays, with China, Hong Kong and Australia closed on Monday.
US stocks ended lower on Friday
The S&P 500 had its worst day since early October as health care stocks incurred steep losses. The sell-off followed news that a Chicago woman has become the second U.S. patient diagnosed with the new virus from China. The Dow Jones Industrial Average finished down 0.6 percent at 28,989.73. The broad-based S&P 500 dropped 0.9 percent to 3,295.45, while the tech-rich Nasdaq Composite Index also shed 0.9 percent to 9,314.91, retreating from a record.
Oil prices fall as China virus spreads
Oil prices slumped a further 2 per cent to multi-month lows on Monday as the rising number of cases of the new China virus and city lockdowns deepened concerns about demand for crude, even as Saudi Arabia's energy minister sought to calm the market. Brent crude fell by $1.12 a barrel, or 1.9 per cent, to $59.57 a barrel level.
HDFC, DRL to report Q3 earnings today
HDFC, Dr Reddy's Laboratories (DRL), United Spirits, InterGlobe Aviation, PTC India Financial Services, Wockhardt, Torrent Pharma and TTK Prestige are some of the companies which will report their December quarter earnings today.
China extends Lunar holidays
China extended its Lunar New Year holiday three more days to discourage people from traveling as it tries to contain the spread of a viral illness that has caused 80 deaths, the government said Monday. There were 2,744 confirmed cases by midnight Sunday, the National Health Commission announced.
FPIs buy Rs 659 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 659 crore on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 418 crore, data suggests.
Sensex on Friday
Sensex gained 226 points on Friday while the broader Nifty closed at 12,248 points led by gains in private banks such as ICICI Bank, Kotak Mahindra Bank and HDFC Bank. Indian markets gained as global crude oil prices fell over 1 per cent. Oil prices are falling as the coronavirus outbreak in China is feared to dent economic activity in the long run.
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