At the day's end, the barometer index, the S&P BSE Sensex fell 103.40 points or 0.25% at 40,952.29. The Nifty 50 index lost 53.30 points or 0.44% at 11,992.50.
In the wider market, the S&P BSE Mid-Cap index fell 0.54%. The S&P BSE Small-Cap index lost 0.41%.
The market breadth was weak. On the BSE, shares 892 rose and 1606 shares fell. A total of 156 shares were unchanged. In Nifty 50 index, 20 stocks advanced while 29 stocks declined. 1 stock remained unchanged.
Buzzing Index:
The Nifty Bank index fell 0.31% to 30,584.80, extending losses for fourth consecutive session. The index has fallen 2.88% in four sessions. In the past one month, the index has lost 1.53%.
Among PSU banks, Union Bank of India (down 7.69%), Allahabad Bank (down 4.76%), Corporation Bank (down 4.59%), Syndicate Bank (down 3.77%), Andhra Bank (down 2.97%), Punjab & Sind Bank (down 2.64%), UCO Bank (down 2.52%), Indian Bank (down 2.38%), Bank of Baroda (down 2.13%), Bank of Maharashtra (down 2.03%), United Bank of India (down 1.54%), IDBI Bank (down 1.45%), Canara Bank (down 1.43%), Bank of India (down 1.31%), Central Bank of India (down 1.2%) and Punjab National Bank (down 0.29%) declined.
Among private banks, Yes Bank (down 5.65%), Federal Bank (down 3.61%), IndusInd Bank (down 2.89%), RBL Bank (down 1.34%), Axis Bank (down 0.88%), HDFC Bank (down 0.75%) and ICICI Bank (down 0.21%) declined.
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The public sector banks have significant exposures to the telecom operators. Investors fear a possible collapse of Vodafone Idea will increase bad loans.
Stocks in Spotlight:
Index heavyweight and Mukesh Ambani led-Reliance Industries (RIL) slid 1.06% to Rs 1,465.45. RIL, announced a consolidation of its media and distribution businesses spread across multiple verticals into Network18. Under the Scheme of Arrangement, TV18 Broadcast (up 15.11%), Hathway Cable & Datacom (up 20%) and Den Networks (up 10%) will merge into Network18 Media & Investments (up 5%). The appointed date for the merger was on Saturday, 1 February 2020. The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly owned subsidiaries of Network18.
For every 100 shares, shareholders of TV18 Broadcast will receive 92 shares of Network 18, Hathway shareholders will get 78 shares of Network18 and Den shareholders 191 shares of Network18.
Kesoram Industries rose 1.63% to Rs 43.75. The company's board approved a fund-raising plan of an amount aggregating up to Rs 1,200 crore, by way of debt, issue of equity shares, convertible securities or any other securities, by way of one or more kinds of issue, including, public issue, rights issue, preferential issue and qualified institutional placement. A committee of the board will decide on fund-raising details such as the security type, issue size, price, record date, allottees and timing of the issue.
Grasim Industries dropped 1.73% to Rs 724.55. The firm has allotted 5,000, 6.65% fully-paid unsecured redeemable non-convertible debentures (NCDs) worth Rs 10 lakh each aggregating to Rs 500 crore on private placement basis. These NCDs have been rated 羨AA (Stable)' by CRISIL Ratings, it added. The debentures shall be redeemed at par at the end of the 3 years from the deemed date of allotment i.e. Monday, 17 February 2020. If it is not a business day, then as per the business day convention, the redemption date would be Friday, 17 February 2023.
JSW Steel fell 1.23% to Rs 284.50. The firm said it has emerged as preferred bidder for three iron ore mines in Odisha with an estimated reserves of 1,092 million tonnes. These three mines are Nuagaon, Narayanposhi and Ganua, the steel major informed in a regulatory filing.
In a separate announcement on Monday, JSW Steel said that the National Company Law Appellate Tribunal (NCLAT), has by its order dated Monday, 17 February 2020, allowed the appeal of JSW Steel for acquiring Bhushan Power and Steel (BPSL). According to media reports, a two-member bench headed by chairman justice S J Mukhopadhaya, said that JSW Steel will be immune from the acts done by the former promoters of BPSL. However, it also said that prosecution against the former promoters under the money laundering act by the Enforcement Directorate can continue. It has also rejected the petitions filed by operational creditors, seeking higher claims.
JSW Energy rose 3.54% to Rs 65.80 after the firm signed share purchase agreement with GMR Energy (GEL) to acquire 100% stake in GMR Kamalanga Energy (GKEL) for Rs 5,321 crore (subject to working capital and other adjustments). Post-acquisition, the total installed power generation capacity of the company will increase to 5,609 MW. This will expand the company's presence in the Eastern Region of the country and further diversify its fuel mix and offtake arrangements.
Varroc Engineering fell 2.43% to Rs 399. The company informed that a fire occurred at Varroc Lighting Systems India (subsidiary of the company) plant located at Hinjewadi, Pune. The plant manufactures lighting products for four wheelers in India and contributes approximately 2% to the consolidated revenue of Varroc Engineering. The fire incidence took place outside the manufacturing block, which then spread to packaging area and resulted into a fire outbreak. There are no human casualties reported. The company is in the process of ascertaining the actual cause of fire and the loss caused by it. Adequate steps are being undertaken to ensure customer service at the earliest. It added that this will have no significant impact on company's operations.
K.P.I. Global Infrastructure surged 19.29% to Rs 40.50. The company received a letter of intent for an order to execute a solar power project of 900 KW capacity from JPB Fibers.
Huhtamaki PPL surged 10.06% to Rs 275.20. On a standalone basis, the packaging solutions maker reported 279.6 % jump in net profit to Rs 68.18 crore on a 9.9% increase in net sales to Rs 663.19 crore in Q4 December 2019 over Q4 December 2018. Consolidated PBT recorded 23.6% YoY rise to Rs 48.74 crore in the December quarter. It has written back current tax expense in the December quarter to the tune of Rs 19.14 crore as compared a tax payout of Rs 21.71 crore same period last year.
Foreign Markets:
Shares in Europe and Asia dropped on Tuesday as a revenue warning from iPhone maker Apple Inc sent shockwaves through the tech sector, highlighting the impact of the coronavirus outbreak on global demand and supply.
In Europe, HSBC said it plans to shed around 35,000 jobs as part of a radical downsizing of its operations in Europe and the US, as it warned of the threat to its business from social unrest in Hong Kong and the coronavirus outbreak.
The bank unveiled the overhaul as it reported a pre-tax loss of $3.9 billion for the fourth quarter, after taking a $7.3 billion writedown on the value of its investment and commercial banks in Europe, which it blamed on "lower long-term economic growth rate assumptions". Adjusted pre-tax profit for the fourth quarter was up 29% to $4.3 billion.
Back in Asia, China reportedly said it would accept applications for tariff exemptions from companies on U.S. goods, from March 2. That would apply to 696 American products, including pork, soybeans, crude oil and liquefied natural gas.
Apple Inc said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China. Apple told investors its manufacturing facilities in China have begun to re-open but are ramping up more slowly than expected. The warning from the most valuable company in the United States turned investor cautious. Apple makes most of its iPhones and products in China.
US financial markets were closed on Monday, in observance of Presidents Day.
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