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Sensex, Nifty extend losses for 3rd session

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Capital Market
Last Updated : Jan 22 2020 | 4:50 PM IST
Key domestic benchmarks declined for third straight session on Wednesday. Large-caps witnessed selling pressure due to concerns over stretched valuations. Investors also turned cautious ahead of the Union Budget on 1 February 2020. The barometer BSE S&P Sensex fell 208.43 points or 0.50% to 41,115.38, as per the provisional closing data.

The Nifty 50 index lost 62.95 points or 0.52% to 12,106.90, as per the provisional closing data. After hitting an intraday low of 12,087.90, the index recovered to close above its 50-day daily SMA placed at 12,104.99.

In the wider market, the S&P BSE Mid-Cap index fell 0.32% while the S&P BSE Small-Cap index lost 0.13.

The market breadth favored the sellers. On the BSE, 1079 shares rose and 1423 shares fell. A total of 176 shares were unchanged. In Nifty 50 index, 16 stocks advanced while 34 stocks declined.

Buzzing Index:

The Nifty IT index rose 0.92% to 16,324.80, outperforming most sectoral indices on the NSE.

TCS (up 1.59%), Persistent Systems (up 1.36%), MindTree (up 1.12%), HCL Technologies (up 1.11%), Infosys (up 1.06%), MphasiS (up 0.43%), Tech Mahindra (up 0.03%) and Oracle Financial Services Software (up 0.01%) advanced.

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Hexaware Technologies (down 1.73%) and Wipro (down 0.59%) declined.

Stocks in Spotlight:

Among Nifty stocks, Larsen & Toubro (down 0.63%) and Axis Bank (down 0.84%) will announce their Q3 earnings today.

Asian Paints fell 1.85% to Rs 1776.70. On a consolidated basis, net profit rose 20.23% to Rs 764.43 crore in Q3 December 2019 over Q3 December 2018. Revenue from operations increased by 3% to Rs 5,420.28 crore in Q3 December 2019 compared to Q3 December 2018. Profit before tax (PBT) stood at Rs 1,057.28 crore in Q3 December 2019 as against Rs 975.01 crore in Q3 December 2018, registering a rise of 8.4%.

Zee Entertainment Enterprises surged 5.14% to Rs 298.55 after consolidated net profit fell 37.87% to Rs 349.43 crore on 5.45% decline in net sales to Rs 2,048.65 crore in Q3 December 2019 over Q3 December 2018.

Bharti Airtel rose 0.70% to Rs 514.95. The government approved increasing the limit of foreign investment upto 100% of the paid up capital of the company.

UPL declined 2.54% to Rs 562.95 after the media reported that Income tax Department conduct searches at the company's offices and premises. According to media reports, the taxmen suspect tax evasion and account manipulation by the company. The BSE has sought clarification from UPL on the same and is awaiting a reply.

Hindustan Media Ventures jumped 5.30% to Rs 82.45. Consolidated net profit rose 18.36% to Rs 32.68 crore on a 5.61% decline in revenue from operations to Rs 208.48 crore in Q3 December 2019 over Q3 December 2018. Profit before tax surged 41.86% to Rs 47.14 crore in Q3 December 2019 from Rs 33.23 crore in Q3 December 2018.

Tejas Networks slumped 8.09% to Rs 82.90 after the company reported a net loss of Rs 112.06 crore in Q3 December 2019 as against a net profit of Rs 32.84 crore in Q3 December 2018. The company recorded pre-tax loss of Rs 14.78 crore in Q3 December 2019 compared with pre-tax profit of Rs 24.91 crore in Q3 December 2019. In Q3 FY20, net sales declined 53% to Rs 86.66 crore on a year-on-year (YoY) basis. The weak revenue during the quarter was primarily due to sharp decline in revenues from India Government segment, which had a YoY decline of 86% for the nine months ended on 31 December 2019.

Mayur Uniquoters surged 5.92% to Rs 246.10 after the company announced commencement of commercial operation at polyurethane (PU) plant located at Morena in Madhya Pradesh on 21 January 2020.

HDFC Asset Management Company slipped 0.28% to Rs 3170 after net profit rose 44.90% to Rs 352.55 crore on 11.1% rise in total income to Rs 591.99 crore in Q3 December 2019 over Q3 December 2018.

Jay Bharat Maruti fell 6.92% to Rs 242.25 after consolidated net profit fell 39.21% to Rs 6.79 crore on 12.1% decline in net sales to Rs 402.74 crore in Q3 December 2019 over Q3 December 2018.

IndiaMART InterMESH spurted 14.34% to Rs 2386.50 after consolidated net profit surged 123.82% to Rs 62 crore on 23.42% rise in net sales to Rs 164.90 crore in Q3 December 2019 over Q3 December 2018. Profit before tax (PBT) jumped 34% to Rs 53 crore year-on-year (YoY). Total revenue from operations grew 23% YoY primarily due to increase in number of paying subscribers as well as higher realization from existing customers. Consolidated deferred revenue grew by 26% YoY to Rs 649 crore in Q3FY20 crore leading to much better visibility for revenues in future.

Foreign Markets:

European markets were trading mostly higher while Asian markets ended mostly in the green on Wednesday. Investors took stock of the spread of a new strain of coronavirus from China and weighed the possible consequences of a global pandemic.

The Bank of Korea said Wednesday the country's economy grew 1.2% on a seasonally adjusted basis in the fourth quarter as compared with three months earlier. That was the fastest expansion since the third quarter of 2017, beating an estimated 0.8% growth from a media poll.

U.S. stocks fell on Tuesday after the Centers for Disease Control confirmed the first U.S. case of a mysterious virus that has infected hundreds in China. Health officials have also confirmed cases in Thailand, South Korea, Japan and Taiwan.

Public health officials have confirmed more than 400 cases of the illness, which has evoked memories of the 2003 outbreak of severe acute respiratory syndrome, or SARS, in China. Health officials have also confirmed cases in Thailand, South Korea, Japan and Taiwan.

In other news, market focus in the region will continue to be on the World Economic Forum (WEF) in Davos, Switzerland. In a keynote speech Tuesday, U.S. President Donald Trump has reportedly urged other countries to put their own citizens first.

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First Published: Jan 22 2020 | 3:40 PM IST

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