The Sensex and the Nifty snapped three-day losing streak on Thursday, supported by gains in Larsen and Tourbo (L&T) and Infosys. The Nifty managed to close above the 12,150 level. Trading was volatile due to expiry of weekly index options on the NSE.
Global stock markets declined amid increasing concerns over the spread of the mysterious coronavirus that has infected hundreds in China. Domestic shares, however, got a boost after crude oil prices fell to their lowest in seven weeks as the disease outbreak in China could trigger slowdown in air travel.
The barometer BSE S&P Sensex rose 271.02 points or 0.66% to 41,386.40. The Nifty 50 index added 73 points or 0.60% to 12,179.90.
In the wider market, the BSE Mid-Cap index rose 1.06% and the BSE Small-Cap index rose 0.95%. Both these indices outperformed the Sensex.
The market breadth was positive. On the BSE, 1456 shares rose and 1069 shares fell. A total of 144 shares were unchanged.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.63% at 16:45 IST compared with 6.635% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.31, compared with its close of 71.195 during the previous trading session.
In the commodities market, Brent crude for March 2020 settlement fell 87 cents to $62.34 a barrel. The contract fell $1.38 or 2.14% to settle at $63.21 a barrel during the previous trading session. Oil prices fell to their lowest in seven weeks on Thursday on concerns that the spread of a newly identified respiratory virus from China may lower fuel demand. At the same time, a report showed oil inventories in the United States rose last week.
Foreign Markets:
Most shares in Europe and Asia edged lower on Thursday as investors remained anxious about the spread of a new flu-like virus in China and worries that the EU is the next target on President Donald Trump's trade list.
The World Health Organization postponed a decision Wednesday over whether to declare coronavirus a global health emergency. Beginning Thursday morning Beijing time, all public transportation was suspended in the Chinese city of Wuhan, where the outbreak is believed to have started.
Meanwhile, Japanese trade data released on Thursday showed exports falling more than expected in December. Japanese exports for December fell 6.3% in December as compared to a year before, data from country's Ministry of Finance data showed.
On Wednesday, President Trump reportedly said the EU has "no choice" but to negotiate a new trade deal with the U.S. and if not, he would need to take action in the form of "very high tariffs on their cars and other things." Trump said that Europe has been "very tough to deal with" and had "taken advantage of the U.S."
Markets will be watching the European Central Bank as its governing board publishes its first monetary policy decision of the year on Thursday.
US stock market ended steady on Wednesday helped by good earnings reports from technology stocks and news that Chinese authorities were taking steps to contain a possible coronavirus pandemic, relieving investor fears about a threat to global economic growth.
Back in the U.S., Trump's impeachment trial is playing out. On Wednesday, House Democrats began a three-day process of laying out their case to the Senate that Trump should be convicted and removed from office.
Buzzing Indian Segment
The Nifty PSU Bank index rose 1.24% to 2,439.90. The index had fallen 2.26% in the previous four sessions.
Central Bank (up 2.43%), State Bank of India (up 2.26%), United Bank of India (up 2.04%), Union Bank of India (up 1.84%), Punjab National Bank (up 1.39%), Allahabad Bank (up 0.81%), UCO Bank (up 0.62%), Bank of Baroda (up 0.58%), Punjab & Sind Bank (up 0.49%), Bank of Maharashtra (up 0.38%), Andhra Bank (up 0.3%), Bank of India (up 0.22%) and Indian Bank (up 0.19%) edged higher.
Canara Bank rose 0.85% after net profit rose 3.81% to Rs 329.62 crore on 3.61% rise in total income to Rs 14,001.63 crore in Q3 December 2019 over Q3 December 2018.
Oriental Bank of Commerce fell 0.92% after net profit jumped 39.11% to Rs 201.66 crore on a 10.03% rise in total income to Rs 5,642.61 crore in Q3 December 2019 over Q3 December 2018.
Q3 Earnings:
Engineering and construction giant L&T rose 2.98% after consolidated net profit rose 15.2% to Rs 2352.12 crore in Q3 December 2019 from Rs 2041.62 crore in Q3 December 2018. Profit before tax (PBT) of the construction company stood at Rs 3414.57 crore in Q3 December 2019 (Q3FY20), down by 3.7% from Rs 3544.82 crore in Q3 December 2018 (Q3FY19). Net sales rose by 5.9% to Rs 36,242.68 crore in Q3FY20 as compared to Rs 34,233.96 crore in Q3FY19. Tax outgo stood at Rs 815.18 crore in Q3FY20, down by 31.1% from Rs 1182.80 crore in Q3FY19.
The consolidated order book of the group stood at Rs 306,280 crore as at 31 December 2019, registering a reasonably high growth of 5% over March 2019. International orders constitute 24% of the total order book.
Axis Bank gained 1.41% after standalone net profit rose 4.53% to Rs 1,757 crore on a 7.52% rise in total income to Rs 19,494.87 crore in Q3 December 2019 over Q3 December 2018. Total tax expense fell 34.78% to Rs 514.77 crore in Q3 December 2019 as against Rs 789.29 crore paid in Q3 December 2018. The Q3 earning was released after market hours yesterday, 22 January 2020.
Loan book grew by almost Rs 28,500 crore quarter on quarter (QoQ). Retail loan book grew 25% year-on-year (YoY), domestic corporate book grew 16% YoY.
Westlife Development (WDL) soared 10.43% after consolidated net profit surged 228.3% to Rs 22.72 crore on 16.8% increase in total revenue to Rs 432.93 crore in Q3 December 2019 over Q3 December 2018.
WDL, which owns the Master Franchisee of McDonald's restaurants in West and South India, reported an Store Sales Growth (SSSG) of 9.2%, over a high SSSG of 14.5% same quarter last year. This marks the 18th consecutive quarter of positive same-store sales growth for the company.
AU Small Finance Bank surged 9.93%. The bank reported 99.5% jump in net profit to Rs 190.20 crore in Q3 December 2019 as compared to Rs 95.33 crore in Q3 December 2018. Profit before tax (PBT) stood at Rs 272.74 crore in Q3 December 2019, up 86.5% from Rs 146.21 crore in Q3 December 2018.
Axiscades Engineering Technologies hit an upper-circuit limit of 20% at Rs 75.15 crore after reporting a net profit of Rs 8.03 crore in Q3 December 2019 compared with net loss of Rs 73 lakh in Q3 December 2018. Consolidated net sales rose 4.9% to Rs 167.23 crore in Q3 December 2019 over Q3 December 2018. Profit before tax soared 804.4% to Rs 12.39 crore in Q3 December 2019 as compared to Rs 1.37 crore in Q3 December 2018. The Q3 results were declared after trading hours yesterday, 22 January 2020.
Ujjivan Small Finance Bank surged 4.38% after standalone net profit surged 97.9% to Rs 89.66 crore on a 52.9% jump in total income to Rs 781.31 crore in Q3 December 2019 over Q3 December 2018. The bank is reporting their first ever quarterly result after being listed on the stock exchanges. Profit before tax (PBT) soared 72.3% to Rs 113.48 crore on YoY basis. The Q3 result was declared after trading hours yesterday, 22 January 2020.
Stocks in Spotlight:
IT major Infosys rose 1.90% to Rs 784.55. ICICI Bank rose 0.96% to Rs 528.
Yes Bank jumped 6.50% to Rs 40.95 after State Bank of india chairman said Yes Bank 'will not be allowed to fail'. "Yes Bank is a significant player in the market with an almost $40 billion balance sheet," State Bank of India chairman Rajnish Kumar told the media in Davos. "I have a feeling that it will not be allowed to fail," he added. Kumar said it won't be good for India's economy as a whole if Yes Bank were to fail. "Because a bank of that size, if it is allowed to fail, there's a problem, he said. And I am sure that some solutions will emerge."
Oil India rose 0.76% after the company moved to the Supreme Court seeking modification of Department of Telecommunication (DoT)'s demand for adjusted gross revenues (AGR) dues worth Rs 48,000 crore.
Cipla fell 1.31%. The drug maker informed has informed that that the United States Food and Drug Administration (USFDA) has classified the inspection conducted at its Goa manufacturing facility from 16-27 September 2019 as Official Action Indicated (OAI).
UPL slumped 3.72% after the firm confirmed that Income tax Department searched its offices and departments.
In its clarification after trading hours yesterday, 22 January 2020, UPL said that it was unable to offer any comment at this juncture. The company is committed to fully co-operate with the authorities in the ongoing search. The company conducts its business in compliance with the provisions of law and shall disseminate further information to the extent and as when it is required to be disseminated. The media reported that I-T department conducted searches at UPL's offices and premises on account of suspicion of tax evasion and account manipulation.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
