MARKET WRAP: Sensex falls 336 points as ITC slips 5% following Q3 results

The benchmark indices settled nearly 1 per cent lower on Wednesday led by a selloff in shares of fast-moving consumer goods (FMCG) major ITC.

The S&P BSE Sensex fell 336 points or 0.92 per cent to settle at 36,108 while NSE's Nifty50 index ended below 10,850 level at 10,831.50, down 91 points or 0.84 per cent.

Among sectors, the Nifty FMCG index was the top loser of the day, falling 1.69 per cent weighed by ITC and United Spirits.

In the broader market, S&P BSE MidCap index fell 42 points or 0.28 per cent at 14,883, while S&P BSE SmallCap index ended at 14,309, down 22 points or 0.16 per cent.

Buzzing Stocks

Shares of ITC fell 4.75 per cent lower at Rs 276 on the National Stock Exchange (NSE) even as the company posted a 3.84 per cent year-on-year (YoY) rise in its net profit at Rs 3,209.07 crore for the quarter ended December 31, 2018. It had posted PAT of Rs 3,090.20 crore in the corresponding quarter of last financial year.

Shares of Wipro hit a near two-decade high of Rs 355.45 apiece in intra-day trade, gaining 2 per cent on the BSE, as analysts expect the company to post better revenue growth in FY20 led by continued momentum in large deal wins, robust digital growth and continued growth in BFSI (banking, financial services and insurance) and other verticals. The stock of IT services firm was trading at its highest level since March 8, 2000. The stock eventually settled at Rs 351.20, up 1.37 per cent.
 

Global Markets

Asian stocks trod water on Wednesday as concerns over the outlook for global economic growth and the ongoing Sino-US trade war kept investors away from riskier assets.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.15 per cent, stalling after climbing to a seven-week high on Monday. The Shanghai Composite Index was last down 0.15 per cent, having flitted in and out of the red. Australian stocks lost 0.25 per cent and Japan's Nikkei shed 0.1 per cent.

Oil Prices

Oil prices were steady on Wednesday on hopes that increased Chinese spending would stem an economic slowdown that is showing signs of spreading and has been weighing on financial markets.

International Brent crude oil futures were at $61.49 per barrel, virtually unchanged from their last close. US West Texas Intermediate (WTI) crude futures were at $52.98 per barrel, 3 cents below their last settlement.

(with Reuters input)

3:38 PM

Sectoral gainers and losers on NSE

3:38 PM

S&P BSE Sensex: Top gainers and losers

3:35 PM

Market at close

 

The S&P BSE Sensex falls 336 points or 0.92 per cent to settle at 36,108 while NSE's Nifty50 index ended below 10,850 level at 10,831.50, down 91 points or 0.84 per cent.

3:18 PM

Focus on limiting losses than chasing large gains, CLSA cautions investors

Investors should focus on "limiting losses rather than chasing large gains" in the Year of the Pig, which will be a roller-coaster year for Hong Kong's stock market, according to brokerage CLSA.

 

The Year of the Pig, which symbolises hard work and affection, will be upset by "small quarrels and pesky spirits", CSLA said on Wednesday in its annual Feng Shui Index, a tongue-in-cheek financial forecast. READ MORE

3:00 PM

ITC Q3 net profit rises 4% YoY to Rs 3,209.07 crore

FMCG major ITC posted a 3.84 per cent YoY rise in its net profit at Rs 3,209.07 crore for the quarter ended December 31, 2018. It had posted PAT of Rs 3,090.20 crore in the corresponding quarter of last financial year. For the nine months ended on December 31, 2018, the figures stood at Rs 8982.42 crore. Total income from operations for the quarter under review came in at Rs 12,267.65 crore, up 15.79 per cent against Rs 10,594.55 crore in the year-ago period. Read more

 

2:46 PM

BSE Sensex down over 0.5%. Top gainers and losers:

2:30 PM

Stock impact: ITC falls over 1% post Q3 results

2:29 PM

COMMENT Kotak Securities sees a rate cut soon

We expect the RBI to cut rates by 50 bps in 1HCY19 given the muted growth-inflation outlook. The RBI will probably first change its stance to ‘neutral’ in February and follow it up with rate cuts as inflation is expected to stay below 4% until August 2019. The RBI, however, will be watchful of DM monetary policies and crude price movements. While volatile crude oil prices and concerns on fiscal slippage may warrant some caution, the seemingly structurally benign food inflation along with softening growth (in 2HFY19) should help in capping the upside pressures, thereby creating space for the RBI to cut rates by 50 bps in 1HCY19.

2:21 PM

NEWS ALERT ITC Q3 net profit at Rs 3,209.07 crores vs Rs 3090.20 crores year ago

2:15 PM

Stocks that touched 52-week low

COMPANY	PRICE()	52 WK LOW	CHG()	CHG(%)
ADITYA BIRLA CAP	89.15	89.10	-1.80	-1.98
DEEPAK FERT.	115.25	113.10	-4.40	-3.68
DILIP BUILDCON	358.85	358.85	-8.80	-2.39
FDC	165.55	161.85	-5.30	-3.10
FORCE MOTORS	1515.00	1503.00	-8.70	-0.57

2:03 PM

INTERIM BUDGET EXPECTATIONS Motilal Oswal Institutional Equities

Although the full budget later this year will hold more significance (as the numbers may change with the new government), the forthcoming interim budget may well offer a glimpse of what lies ahead as market participants seek answers to some crucial questions: Will the government increase rural spending and turn populist? Will such populist spending be an annual occurrence or a one-time event? Will the salaried class enjoy any relaxation or will the large companies see lower corporate tax rates at 25%? What would happen to the capital spending of the central government? Will politics of the day allow the center to follow the path of fiscal consolidation?

2:00 PM

Prabhudas Lilladher on Asian Paints

 

We increase our FY19 and FY20 EPS by 6.9-6.7% as APNT has posted ~24% volume growth in domestic decorative business, first 20% growth number after 3QFY11. Although sustenance of the same is yet to be tested given benefit of low base and late Diwali this year and GST rate reduction in 3Q. APNT has given a cautiously optimistic outlook as sales growth will remain sensitive to overall demand and elections. Margins in the near term will be a function of USD/INR, crude price volatility, sales mix and stabilization of production in new units at Mysore and Vizag.

We remain positive in the structural growth story due to 

1) likely benefits of GST rate reduction given ability to straddle through price points and deep distribution 

2) strong pricing power given 7.4% price increase in the calendar year and 

3) lower share of Automotive/ Industrial paints (5% of Consol sales) which will face more demand and margin pressure in near term.

1:52 PM

IBM beats Q4 expectations, reports full-year revenue growth; shares jump 7%

 

IBM Corp beat Wall Street quarterly earnings estimates and also forecast 2019 profit above expectations on Tuesday, in the latest indication that Chief Executive Officer Ginni Rometty's efforts to turn around the technology services company were gaining traction.

 

Shares rose 7 per cent in extended trading after IBM also posted its first annual revenue growth since 2011. READ MORE

1:37 PM

Gold steady as slowing economy, US-China trade war raise safe-haven demand

Gold prices stood firm on Wednesday, after gaining the most since Jan. 9 the day before, on higher demand for safe-haven assets over concerns of slowing global economy and uncertainties about the US-China trade row. Spot gold was little changed at $1,284.50 per ounce, while US gold futures were up 0.1 per cent at $1,284 per ounce. Spot gold rose 0.4 per cent on Tuesday as global stock markets fell. Asian stocks edged down on Wednesday. Read more

1:22 PM

Top gainers on BSE500

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
ADANI TRANSMISSI	219.60	9.80	4.67	22321
JUBILANT LIFE	761.80	30.00	4.10	37483
BOMBAY BURMAH	1268.40	48.05	3.94	390796
GRANULES INDIA	89.95	3.30	3.81	32507
INDBULL.REALEST.	80.60	2.90	3.73	241743