MARKET WRAP: Sensex drops 423 points from day's high to close at 35,353

All that happened in the market today

The benchmark indices pared their day's gains and closed nearly half a per cent lower on Tuesday led by a fall in TCS, Infosys, RIL and HDFC twins.

The S&P BSE Sensex ended at 35,353, down 146 points or 0.41 per cent, while the broader Nifty50 index settled at 10,605, down 36 points or 0.34 per cent.

Among sectors, the Nifty IT index ended around 2 per cent lower driven by a fall in TCS and Wipro. The Nifty Pharma index, too, settled 0.3 per cent lower weighed by Auropharma and Dr Reddy's Labs. 

In the broader market, the S&P BSE MidCap index ended 72 points, or 0.53 per cent higher at 13,868, while S&P BSE SmallCap index settled at 13,159, up 40 points, or 0.31 per cent.

Buzzing Stocks

Shares of Emami surged 17.6 per cent to Rs 417.7 apiece on the BSE in the intra-day trade after the promoters of the personal products company divested 10 per cent stake in the company for Rs 1,600 crore to reduce the debt. The stock ended 14.80 per cent higher at Rs 407.60.

Shares of Kaveri Seed Company (KSCL) slipped 14.7 per cent to hit a 52-week low of Rs 399 on the BSE, extending its fall in the past four sessions after the company reported a weak set of numbers for the quarter ended December 2018 (Q3FY19). The stock closed at Rs 421.45, down 9.95 per cent.

Global Markets

Asian shares hovered near four-month highs on Tuesday, supported by hopes that Sino-US trade talks were making progress and expectations of policy stimulus from central banks.

MSCI's broadest index of Asia-Pacific shares outside Japan was a shade firmer, while Japan's Nikkei was almost flat. Chinese shares were little changed, too, with the blue-chip index up 0.1 per cent after surging in the previous session.

(with Reuters input)

3:44 PM

MARKET COMMENT :: Vinod Nair, Head of Research, Geojit Financial Services

Market opened on a positive note as transfer of interim dividend from RBI to government helped the indices to rebound after many days of correction. However, the reversal was short lived due to mixed global market & investors’ strategy to book profit on every rally. Albeit, rate sensitive sectors stand positive due to the stimulus measures from RBI and reforms by government

3:39 PM

Sectoral gainers and losers of the day on NSE

3:37 PM

Gainers and losers of the day on S&P BSE Sensex

3:34 PM

Market at close

The S&P BSE Sensex ended at 35,353, down 146 points or 0.41 per cent, while the broader Nifty50 index settled at 10,605, down 36 points or 0.34 per cent.

3:12 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
KAVERI SEED CO.	409.75	-58.25	-12.45	563983
S H KELKAR & CO.	141.75	-9.95	-6.56	4079
IFB INDS.	736.25	-39.25	-5.06	955
NAVKAR CORPORAT.	37.50	-1.70	-4.34	18063
INDIABULLS VENT.	260.00	-11.20	-4.13	72014

2:54 PM

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2:37 PM

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2:20 PM

R&D spin-off may help Glenmark Pharma to cut investment risks, reduce debt

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2:04 PM

Market check

1:49 PM

NPA woes: India beats Italy to be world's worst non-performing loan ratio

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1:36 PM

Kaveri Seed extends fall on weak Q3 results; slips 8% to hit 52-week low

Shares of Kaveri Seed Company (KSCL) slipped 8 per cent to hit a 52-week low of Rs 431 on the BSE, falling 16 per cent in past four sessions after the company reported a weak set of numbers for the quarter ended December 2018 (Q3FY19).

The company engaged in agriculture products business posted 33 per cent year-on-year (YoY) decline in net profit at Rs 3.65 crore in Q3FY19, on account of lower sales. It had a profit of Rs 5.43 crore in the year-ago quarter. Net sales decreased 5 per cent to Rs 67.18 crore from Rs 70.64 crore in the corresponding quarter of previous fiscal. READ MORE

1:25 PM

Top gainers and losers on S&P BSE Sensex

1:05 PM

OMCs extend gains

12:50 PM

Motilal Oswal on Kaveri Seed

CMP: Rs 468 

Target Price: Rs 582 

Rating: Buy

 

view: Management guidance for cotton volumes in FY20 was robust at 7.2m packets (our estimate: 6.9m). We, nevertheless, cut our FY21 cotton volume estimate by 3% (keeping it same as that of FY20) due to lower visibility, which translates into an 8% earnings cut for FY21. The downside to our estimate is the non-renewal of KSCL’s license by the Andhra Pradesh government (got suspended recently for a year), which can impact FY20 revenue by 6-7%. Given this uncertainty, which might restrict the company from taking advantage of a likely positive cotton season in FY20, we cut our multiple from 17x to 15x (~10% discount to its three-year average multiple). We, however, find comfort from the company’s reducing dependency on cotton business, with non-cotton share likely to rise up to 55% in FY21. Our TP of INR582 implies a 24% upside on FY21E EPS. Maintain Buy.

12:40 PM

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Illustration by Binay Sinha