MARKET WRAP: Banks, pharma send Sensex 202 pts lower; Nifty ends at 12,046

All that happened in markets today.

Benchmark indices ended around half a per cent lower on Monday, dragged down by banking stocks exposed to telecom operators after the government ordered mobile carriers to immediately pay the adjusted gross revenue (AGR) dues. 

The S&P BSE Sensex declined 202 points or 0.49 per cent to end at 41,056 levels. HDFC, Reliance Industries (RIL), ITC, SBI, and ICICI Bank emerged as the major contributors to the index's fall while TCS and Infosys gave the much-needed support. 

Vodafone Idea ended over half a per cent lower at Rs 3.42 after jumping around 19 per cent in the early trade. The stock reversed its gains after the Supreme Court rejected the telecom firm's proposal to pay Rs 2,500 crore by the end of the day and Rs 1,000 crore by Friday against AGR dues, while also refusing its plea that no coercive action be taken against it. READ MORE

NSE's Nifty ended the day at 12,046, down 68 points or 0.56 per cent. 

Volatility index India VIX advanced nearly 7 per cent to 14.54 levels.

On the sectoral front, Nifty PSU Bank index slumped the most - nearly 3 per cent to 2,146 levels. Bank of Baroda (BoB), Punjab National Bank (PNB), Oriental Bank of Commerce, Allahabad Bank and Union Bank of India (UBI) has hit their respective five-year lows on the National Stock Exchange (NSE) in the intra-day trade. Indian Bank and Jammu & Kashmir Bank from the Nifty PSU Bank index also hit their fresh 52-week lows. READ MORE
 

GLOBAL MARKETS

Global shares rose on Monday as the promise of further policy stimulus to counteract the economic hit from a coronavirus outbreak calmed nervous investors. In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.17 per cent to near last week’s peak of 558.30, its highest since late January. Japan’s Nikkei fell 0.7 per cent after its economy shrank at the fastest pace in almost six years in the December quarter. The slowdown in the world’s third-largest economy came amid concern the coronavirus effects will hurt output and tourism, stoking fears Japan may slump into recession.

South Korea’s KOSPI index ended mostly flat. Australian, Singapore and Malaysian share indexes weakened.

In commodities, gold fell 0.25 per cent to $1,580 an ounce. Brent crude was higher at $57.41 a barrel and US crude added 0.25 per cent to $52.22.

(With inputs from Reuters)

4:07 PM

MARKET OUTLOOK | Vinod Nair, Head of Research at Geojit Financial Services

Domestic growth concerns seem to be back in the market as indicated by a recent downgrade by Moody’s. Banks having significant exposure in Telecom players continue to be in the limelight as lack of funds could delay the payments and degrade the quality of banks balance sheet. Continuous rise in corona cases has forced major Asian peers to downgrade their growth outlook which could cause a ripple effect in other nations in the first quarter while recovery is expected from the second

3:43 PM

SECTOR WATCH | All sectoral indices, except IT end in the red

3:42 PM

MARKET AT CLOSE | Top losers and gainers on the S&P BSE Sensex

3:39 PM

CLOSING BELL

The S&P BSE Sensex slipped 202 points or 0.5 per cent to end at 41,056 while NSE's Nifty lost 68 points or 0.56 per cent to settle at 12,046 levels. 

3:22 PM

MARKET CHECK | ITC hits fresh 52-week low

3:07 PM

BUZZING STOCK | Lemon Tree jumps over 5%

2:57 PM

BUZZING STOCK | Alphageo (India) zooms over 18%

- It bags orders worth Rs 128.6 crore from Oil India

2:48 PM

BROKERAGE RADAR | HDFC Securities on KNR Constructions

We maintain BUY on KNR with SOTP-based TP of Rs 376/sh (valuing core EPC business 18x FY21EPS at Rs 317/sh, Subsidiaries Rs 60/sh). KNR delivered yet another steady quarter with Revenue/EBIDTA/APAT beat/(miss) of (0.4)/17/(12)% respectively.

2:46 PM

MARKET CHECK | Voda Idea erases all its morning gains, trades flat

2:44 PM

Global Markets check

European shares inched higher on Monday as fresh attempts by China to limit the economic impact of the coronavirus outbreak helped calm investor nerves.

 

The pan-European STOXX 600 index rose 0.3 per cent in early trade, staying slightly below a record high of 432.26 touched last week. Market activity is expected to be light through the rest of the day on account of a US holiday.
 

Asian shares reversed losses on Monday and moved back toward a three-week top as China’s persistent efforts to cushion the blow from a coronavirus outbreak calmed nervous investors, although Japanese stocks faltered on growing recession risks.MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.3 per cent to be within kissing distance of last week’s peak of 558.30, which was the highest since late January.

Japan’s Nikkei stumbled 0.7 per cent after the country’s economy shrank at the fastest pace in almost six years in the December quarter. South Korea’s KOSPI index ended mostly flat while Australian, Singapore and Malaysian share indexes were a tad weaker.

2:38 PM

NEWS ALERT | Promoters of NCC created pledge on 11 lakh shares (0.2% equity) on Feb 13

2:36 PM

NEWS ALERT | Jubilant Food promoter releases pledge on 3.5 lakh shares (0.3% equity) on Feb 7

2:31 PM

Bank of Baroda falls 4% as Calcutta HC asks RBI to take action against it

Shares of public sector lender Bank of Baroda (BoB) declined over 4 per cent on Monday after the Calcutta High Court directed the Reserve Bank of India (RBI) to consider appropriate steps against it, including revoking its licence or authority to carry on with banking business, if necessary, for failing to honour a bank guarantee given by a third party to Indian Oil Corporation (IOCL). READ MORE

2:29 PM

BROKERAGE RADAR | Centrum Broking on SpiceJet

Led by lower than expected yields and elevated cost structure due to delay in return of Max aircrafts, we have lowered our FY21 earnings sharply by 59.4%. We maintain our Reduce rating on the stock with a revised TP of Rs 97 (based on 7x FY22E EBITDAR).

2:29 PM

SECTOR WATCH:: Metal stocks under pressure