Key equity benchmarks ended with modest losses on Friday. After trading near the flat line for most part of the session, key benchmarks slipped in the last hour of the trade and ended near the day's low. The Nifty, however, managed to close slightly above the 12,000 mark.
The S&P BSE Sensex, fell 152.88 points or 0.37% to 41,170.12, as per the provisional closing data. The Nifty 50 index lost 45.05 points or 0.37% at 12,080.85, as per the provisional closing data. Trading was volatile due to expiry of weekly index options on the NSE.
Investors awaited more clarity on U.S. President Donald Trump's statement ahead of his visit to India that the two countries were working on a major trade deal. Trump has said that he was not sure if the trade deal with India would be completed before the U.S. presidential election in November.
Trump, along with First Lady Melania Trump, will reach Ahmedabad, Gujarat on Monday (24 February) for a two-day India visit. The domestic stock market will remain closed for Shivratri holiday on Friday (21 February).
The broader market advanced. The S&P BSE Mid-Cap index was up 0.40% while the S&P BSE Small-Cap index jumped 0.51%.
The market breadth was almost even. On the BSE, 1243 shares rose and 1277 shares fell. A total of 169 shares were unchanged. In Nifty 50 index, 21 stocks advanced while 29 declined.
Buzzing Index:
The Nifty IT index slipped 0.84% to 16,631.55, underperforming the other sectoral indices on the NSE.
Hexaware Technologies (down 1.77%), TCS (down 1.76%), Tech Mahindra (down 1.35%), Wipro (down 0.73%), Oracle Financial Services Software (down 0.56%), Infosys (down 0.47%) and Persistent Systems (down 0.06%) declined.
Stocks in Spotlight:
GAIL (India) slipped 0.54% to Rs 119.30. The company said it has to pay Rs 1,83,076 crore as AGR dues and penalties derived in provisional assessment orders by the department of telecommunications (DoT) is legally not tenable. The company also said it has filed a plea at the Supreme Court to seek clarification on the orders passed.
Asian Paints fell 2.26% lower at Rs 1843.65. The company's board will meet on Tuesday, 25 February, 2020, to consider second interim dividend for the financial year ending 31 March 2020. The record date will be 4 March 2020.
Max Financial Services surged 9.48% to Rs 565.40 after the media reported that Axis Bank is set to acquire more than 20% stake in Max Life Insurance through fresh issue of equity. Max Financial is the holding company of Max Life Insurance. As per reports, the proposed deal is aimed at building a strategic and long-term relationship with Axis Bank, which reportedly contributes more than 54% to Max Life's revenue. It will also eliminate uncertainty over the insurer having a strong, strategic bancassurance partner. Axis Bank, which reportedly owns a little over 2% of Max Life, is expected to infuse more than Rs 2,000 crore in the insurer. The money will go toward funding Max Life's expansion plan, media reports said.
Jayant Agro-Organics fell 3.79% to Rs 90.20. CRISIL downgraded the long-term rating to BBB+ from A- earlier and also revised outlook to negative from outlook. It also downgraded the short-term rating to A2 from A2+. The revision in the credit rating is due to sharp decline in the prices of castor seeds (major raw material for the Jayant group). However, the ratings continue to reflect Jayant group's leadership in the castor oil-based derivatives businesses and extensive industry experience of the promoters. The ratings also factor in healthy net worth & comfortable capital structure of the company.
Simplex Infrastructures hit 5% upper circuit at Rs 54. Media reports suggested that Adani Group is considering to buy an equity stake in Simplex Infrastructures. Two private equity investors have also reportedly expressed interest in the company. The proposed share sale is a part of the stressed assets resolution plan Simplex Infrastructure is preparing, the report said.
Thomas Cook (India) was locked in an upper circuit of 20% at Rs 49.3 after the company said its board will consider share buyback on 26 February 2020. In an exchange filing made before market hours today, the travel agency company said a meeting of the board of directors of the company is scheduled on Wednesday, 26 February 2020, to consider buyback of equity shares.
Sterlite Technologies rose 2.34% to Rs 113.60. The company has added new orders of Rs 1,500 crore. These orders have ranged from continued business development in its core areas of optical connectivity solutions and network services to emerging areas such as software virtualization.
Infibeam Avenues rose 3.63% to Rs 58.55. The company said that it has made inroads into United States of America, the world's second largest digital payments market by revenue. The company will offer its vast array of digital payment solutions to web and mobile based small and medium enterprises (SME) largely operating in the online retail, education, hospitality and travel and tourism industry, apart from other industry verticals under the brand CCAvenue.
Global Markets:
Most shares in Europe and Asia declined on Thursday despite a slowdown in the spread of the coronavirus in mainland China.
China cut the loan prime rate on Thursday. The 1-year LPR was reduced by 10 basis points, while the 5-year LPR saw a 5 basis points deduction.
In US, the S&P 500 and Nasdaq finished at all-time highs on Wednesday as investors were encouraged by comments from the Federal Reserve and measures China says it has taken to help coronavirus-stricken businesses.
Minutes from the rate-setting Federal Open Market Committee's January meeting showed that Fed officials believe the US economy appeared stronger in late January than they had been expecting.
Chinese officials have said the rate of new cases has begun to ebb, but the World Health Organization has recommended caution.
Investors also appeared heartened by comments from China's Ministry of Industry and Information Technology, which reportedly said Beijing would help companies to identify weak links in supply chains.
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