Market ends with decent gains

Domestic shares ended with decent gains on Monday, after a sharp fall on Saturday, which was triggered due to lack of sufficient stimulus measures in the Union Budget. The Nifty managed to close above 11,700 mark. Gains were capped due to weak cues from other Asian stock markets.

The barometer BSE S&P Sensex rose 92.68 points or 0.23% to 39,828.21, as per the provisional closing data. The Nifty 50 index added 62.20 points or 0.53% to 11,724.05, as per the provisional closing data.

In the broader maket, the S&P BSE Mid-Cap index rose 1.07% while the S&P BSE Small-Cap index gained 0.09%.

There were more sellers than buyers. On the BSE, 940 shares rose and 1467 shares fell. A total of 173 shares were unchanged. In Nifty 50 index, 28 stocks advanced while 21 stocks declined. 1 stock remained unchanged.

Economy:

The headline seasonally adjusted IHS Markit India Manufacturing PMI rose from 52.7 in December to 55.3 in January, its highest level in just under eight years. The consumer goods sub-sector remained the brightest spot, although growth was sustained in intermediate goods and capital goods moved back into expansion.

"The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business. Companies also benefited from subdued cost pressures, which enabled them to restrict increases in their fees to some extent. There was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," said Pollyanna de Lima, Principal Economist at IHS Markit.

Stocks in Spotlight:

Tata Motors fell 1.42% to Rs 163.40. The company's auto sales in the domestic & international market, in January 2020 stood at 47,862 vehicles as against 58,185 units during January 2019, down 17.74% year-on-year (YoY). Total auto sales, however, registered a 2.04% rise from 46,903 units in December 2019. Total domestic sales declined 18% to 45,242 units in January 2020 as compared to 54,915 units in January 2019. Passenger vehicles segment saw sales decline by 22% to 13,894 units while the commercial vehicles sales witnessed 16% fall to 33,860 units in January 2020 over January 2019.

Eicher Motors lost 1.35% to Rs 19780. The company's' unlisted subsidiary VE Commercial Vehicles (VECV) reported 6.1% decline in total sales to 5,544 units in January 2020 from 5,906 units in January 2019. Total exports slipped 18.1% to 517 units in January 2020 as against 631 units in January 2019. Total domestic sales dropped 5.9% to 4,871 units in January 2020 compared with 5,177 units in January 2020. Total Eicher trucks & buses sales fell 7.2% to 5,388 units in January 2020 as against 5,808 units in January 2019. Sales of Volvo Trucks surged 59.2% to 156 units in January 2020 compared with 98 units in January 2019.

TVS Motor Company rose 1.76% to Rs 471.05. The automaker posted sales of 2,34,920 units in January 2020 as against sales of 2,82,630 units in the month of January 2019, registering a drop of 17% year-on-year (YoY). Sequentially, total sales rose 1.45% in January 2020 as against 2,31,571 units reported in December 2019. Total two-wheelers registered sales fell 18.14% to 2,20,439 units in January 2020 as against 2,69,277 units reported in January 2019.

SML Isuzu slipped 0.25% to Rs 543. The auto maker reported 11.53% rise in vehicle sales to 1,112 units in January 2020 from 997 units in January 2019. Total sales (cumulative 10 months till January 2020) fell 12% to 9,127 units as against 10,373 units in corresponding period previous year.

Ashok Leyland rose 1.23% to Rs 77.95. The commercial vehicles manufacturer announced dismal January 2020 sales. Total vehicle sales fell 40% in January 2020 to 11,850 units from 19,741 units in January 2019. The total sales however, are up 6.11% from 11,168 units in December 2019. The company's domestic sales declined 41% to 10,850 units in January 2020 from 18,533 units in January 2019.

Coal India rose 2.85% to Rs 178.65 after its total coal production in January 2020 stood at 63.11 million tonnes as compared to 57.21 million tonnes in January 2019, recording a rise of 10.3%. Coal offtake rose 6.9% to 56.05 million tonnes in January 2020 as against 52.44 million in January 2019.

Amara Raja Batteries surged 5.90% to Rs 787 after consolidated net profit jumped 25.42% to Rs 164.16 crore in Q3 December 2019 from Rs 130.89 crore in Q3 December 2018. The company's net revenue from operations in the December quarter stood at Rs 1747.81 crore, up 3.14% from Rs 1694.66 crore in the same period last year. The result was announced after market hours on Saturday, 1 February 2020.

Relaxo Footwear slipped 0.96%. On a standalone basis, Relaxo's net profit jumped 52% to Rs 54.16 crore in Q3 December 2019 as against Rs 35.62 crore reported in Q3 December 2018. Net sales for the quarter ending December 2019 stood at Rs 599.83 crore, rising 8.8% on YoY basis.

Sobha rose 1.89% at Rs 437. The realtor reported 4.9% rise in consolidated net profit to Rs 73.20 crore in Q3 December 2019 from Rs 69.80 crore in Q3 December 2018. Profit before tax (PBT) in the December quarter stood at Rs 116.40 crore, up 6.2% from Rs 109.60 crore in Q3 December 2018. Net sales witnessed 12.1% rise to Rs 883.20 crore in Q3 December 2019 from Rs 787.90 crore in Q3 December 2018.

Global Markets:

European markets traded higher while Asian stocks ended lower on Monday. This followed the sell-off on Wall Street on Friday amid concerns about the rapid spread of the coronavirus outbreak and its impact on the global economy.

China's Shanghai Composite plummeted almost 8% on their first day of trading after an extended Lunar New Year holiday. The markets were closed since 24 January 2020. China's health officials said the death toll related to the coronavirus has risen to 361, while there are 17,205 confirmed cases.

The People's Bank of China (PBOC) said Sunday it would launch a 1.2 trillion yuan ($173 bln) reverse repurchase operation on Monday to maintain "reasonable and abundant liquidity" in the banking system, as well as a stable currency market, during the epidemic.

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