Domestic shares further extended losses with key benchmarks hitting fresh intraday low in afternoon trade. The Nifty slipped below its 50 days simple moving average (DMA) placed at 12,014.37, hitting the day's low at 12,007.95. Sentiment was hit by Middle East tensions, rising crude oil prices and the rupee slipping below the 72-mark.
At 13:26 IST, the barometer index, the S&P BSE Sensex tumbled 704.17 points or 1.70% at 40,760.44. The Nifty 50 index was down 213.65 points or 1.75% at 12,013.
In the broader market, the S&P BSE Mid-Cap index was down 2.02% while the S&P BSE Small-Cap index was down 1.82%. Both these indices underperformed the BSE Sensex.
The market breadth favored the bears. On the BSE, 515 shares rose and 1838 shares fell. A total of 166 shares were unchanged. In Nifty 50 index, 3 stocks advanced while 47 stocks declined.
Stocks in Spotlight:
Adani Ports and Special Economic Zone was down 0.39% at Rs 381.20. The company said it will acquire 75% stake of Krishnapatnam Port Company (KPCL) from the existing shareholders. The investment is in line with the company's strategy to increase its footprint in Andhra Pradesh. KPCL handled 54 MMT in FY2019. Acquisition value of KPCL is approximately Rs 13,500 crore. The purchase consideration will be funded through internal accruals.
Bajaj Finance fell 3.78% to Rs 4034. In its Q3 business update, the company said that customer franchise as of 31 December 2019 rose 23.93% and stood at approximately 40.4 MM as compared to 32.6 MM in the same period last year. The company acquired 2.5 MM new customers in December 2019. New loans booked rose 13.24% to 7.7 MM on YoY basis. The Assets under management (AUM) stood at approximately Rs 145,200 crore as of 31 December 2019 as compared to Rs 107,507 crore as of 31 December 2018, a rise of 35.06%.
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Titan Company rose 1.47% to Rs 1156.20 after the company's jewellery division witnessed revenue growth of 11% in Q3 December 2019, meeting its revised expectations for the quarter. The retail growth was actually much better at 15%. While the industry witnessed reasonable growth in the festive season, the company has done better which is evident in the market share gains.
"The general economic slowdown in the economy leading to poor consumer sentiment and lower walk ins has been a concern for the last few quarters. The company experienced different consumer responses in each of its divisions. Retail sales in jewellery were better than expected at the beginning of the quarter, possibly due to a good wedding season and reasonable inelasticity of wedding jewellery, but growth in Watches and Eyewear were difficult to come by. Sales in all divisions in the second half of December was also impacted to some extent due to forced store closures due to the protests in the North East and in many other parts of the country", Titan Company said.
Foreign Markets:
Trading in the futures market indicated that the Dow Jones may slide 141.50 points at opening bell on Monday.
European market opened lower while Asia indices fell across the board on Monday as geopolitical tensions flared up after a U.S. airstrike killed Iran's top military commander. Investors fled riskier assets like equities in favor of safer alternatives like gold and bonds.
The Iranian regime said Sunday that it would no longer abide by uranium enrichment limits established in the 2015 nuclear deal, which the U.S. unilaterally withdrew from in 2018.
On Sunday President Trump reportedly threatened to impose sanctions on Iraq, the second largest producer among the Organization of the Petroleum Exporting Countries (OPEC), if US troops were forced to withdraw from the country. Baghdad earlier called on American and other foreign troops to leave Iraq.
Trump also said that the United States will retaliate against Iran if Tehran were to strike back after the killing, the reports said.
Brent Crude oil prices jumped 3% on Monday, rising for second straight sessions, on concerns that potential conflict between the U.S. and Iran could disrupt energy production in the region.
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