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Sensex, Nifty fall for 2nd session; Avenue Supermarts hits record high

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Capital Market
Last Updated : Feb 10 2020 | 5:04 PM IST
Key equity market benchmarks recovered from the day's low and ended with minor cuts for second straight session on Monday. The Nifty managed to close above the crucial 12,000 mark. Sentiment was weak amid ongoing concerns around the coronavirus outbreak in China.

The barometer BSE S&P Sensex fell 162.23 points or 0.39% to 40,979.62, as per the provisional closing data. The Nifty 50 index lost 66.85 points or 0.55% to 12,031.50, as per the provisional closing data.

The S&P BSE Mid-Cap index fell 0.78% while the S&P BSE Small-Cap index lost 0.43%.

The market breadth favored the sellers. On the BSE, 986 shares rose and 1553 shares fell. A total of 169 shares were unchanged. In Nifty 10 index, 40 stocks advanced while 25 stocks declined.

Stocks in Spotlight:

Avenue Supermarts surged 8.50% to Rs 2481. The stocks has hit an all time high of Rs 2,537 in intraday today. The company has crossed Rs 1,55,000 crore in market capitalization today.

Britannia Industries fell 2.99% to Rs 3155. The FMCG major reported 23.92% rise in consolidated net profit to Rs 372.63 crore on 5.02% rise in total income to Rs 3048.16 crore in Q3 December 2019 over Q3 December 2018. During this phase of sluggish demand, the company continued to invest in enhancing brand equity through focused product campaigns.

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Cement major ACC lost 3.35% to Rs 1451 after consolidated net profit dropped 62.7% to Rs 273.25 crore in Q4 December 2019 as against net profit of Rs 732.31 crore in Q4 December 2019. Net sales rose 4.8% year-on-year to Rs 3,969.77 crore in Q4 December 2019.

Cipla rose 0.19% to Rs 444. The drug major said it has acquired 4 brands -- CPink, CDense, Productiv and Folinine -- from Wanbury to further strengthen its presence in women's health. The nutraceutical products, to be sold under the 4 umbrella brands, would address various health needs for conditions arising due to nutritional deficiencies or insufficiencies.

Dr Reddy's Laboratories shed 0.35% to Rs 3154.70. The drug major said Curis, a biotechnology firm focusing on the development of innovative therapeutics for cancer treatment, has entered into an amendment of its collaboration, license and option agreement with Aurigene, a subsidiary of Dr Reddy's.

Maruti Suzuki India declined 0.99% to Rs 6900. The car major announced a 2.16% decline in total production for the month of January 2020 to 179,103 units from 183,064 units reported in January 2019.

JSW Steel declined 0.52% to Rs 277.85.The steel maker has reported crude steel production of 14.10 lakh tonnes for January 2020 compared to 14.53 lakh tonnes in January 2019, recoding a decline of 3%. Production of flat rolled products stood at 10.25 lakh tonnes in January 2020 compared to 10.40 lakh tonnes in January 2019, lower by 1%. Production of long rolled products stood at 3.42 lakh tonnes in January 2020 compared to 3.44 lakh tonnes in January 2019, lower by 1%.

Mahindra & Mahindra (M&M) fell 7.17% to Rs 528. M&M's profit after tax (excluding one-off items and EI) rose 7% to Rs 934 crore on a 6% decline in revenue to Rs 12,120 crore in Q3 December 2019 (Q3 FY20) over Q3 December 2018 (Q3 FY19). The results include the combined earnings of M&M and Mahindra Vehicle Manufacturers (MVML), which is a manufacturing unit of M&M. The combined EBITDA grew 1.60% to Rs 1,793 crore in Q3 FY20 from Q3 FY19. In Q3 FY20, M&M accounted exceptional and one-off items Rs 554 crore as compared to a net gain on account of exceptional and one-off items of Rs 519 crore in Q3 FY19.

Tata Steel slumped 5.93% to Rs 443. On a consolidated basis, Tata Steel reported a net loss of Rs 1084.62 crore in Q3 December 2019 (Q3 FY20) as against a net profit of Rs 2283.98 crore in Q3 December 2018 (Q3 FY19). Net sales declined 8.7% to Rs 34774.29 crore in Q3 FY20 as against Rs 38086.29 crore reported in the same period last year. Consolidated EBITDA fell 45.60% year-on-year (YoY) to Rs 3,659 crore in Q3 FY20.

Motherson Sumi Systems (MSSL) slumped 5.10% to Rs 125.55 after the company reported 30.47% decline in consolidated net profit to Rs 270.51 crore in Q3 December 2019 (Q3 FY20) over Q3 December 2018 (Q3 FY19). Revenue from operations declined 4.91% to Rs 15,436.46 crore in Q3 FY20 from Rs 16,233.65 reported in Q3 FY19. Profit before tax or PBT in the December quarter stood at Rs 463 crore, down by 43.83% from Rs 824.25 crore in the same period last year. EBITDA decreased by 10.67% to Rs 1264 crore in Q3 FY20 from Rs 1415 crore in in Q3 FY19, amid challenging global market conditions.

Gail (India) declined 0.89% to Rs 121.90. Consolidated net profit jumped 12.93% to Rs 2,029.51 crore in Q3 December 2019 (Q3 FY20) as against Rs 1,797.04 crore reported in Q3 December 2018 (Q3 FY19). On a consolidated basis, revenue from operations declined 11.52% year-on-year (Y-o-Y) to Rs 17,898.16 crore in Q3 FY20. The Q3 earnings were announced during trading hours today, 10 February 2020. Consolidated profit before tax gained 5.48% to Rs 2,816.31 crore Y-o-Y. Consolidated current tax expenses slumped 9.85% to Rs 786.80 crore during the period under review.

Grasim Industries tumbled 4.36% to Rs 753. On a consolidated basis, Grasim's net profit declined 28.25% to Rs 680.27 crore in Q3 December 2019 as against net profit of Rs 948.11 crore in Q3 December 2018. Total revenue declined 1.37% year-on-year (YoY) to Rs 19205.05 crore in Q3 December 2019 over Q3 December 2018. Profit before tax (PBT) for Q3 December 2019 stood at Rs 1454 crore, down by 16.82% from Rs 1748 crore in Q3 December 2018. EBITDA declined 4.78% to Rs 2968 crore in Q3 December 2019 as against Rs 3117 crore reported in Q3 December 2018.

Global Markets:

Shares in Europe and Asia edged lower on Monday as the death toll from a coronavirus outbreak surpassed the SARS epidemic, raising alarm bells about its severity.

China's National Health Commission said Monday that the death toll from the coronavirus outbreak had reached 908 in mainland China.

China's producer price index gained 0.1% in January. Consumer prices rose 5.4% year-on-year, rising the fastest in more than eight years last month, with the outbreak of the coronavirus and subsequent shutdowns of transport links across the country.

In US, markets closed lower on Friday, a day after all three benchmark indexes finished at records, as investors locked in recent stock gains following a stellar January jobs report that exceeded economists' expectations. Also on investors' radar were efforts to contain the fast-moving coronavirus amid a busy week of quarterly earnings reports.

The US economy added 225,000 jobs in January, while the unemployment rate ticked up slightly to 3.6% as the share of Americans in the labor force rose by 0.2 percentage point.

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First Published: Feb 10 2020 | 3:40 PM IST

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