Market Wrap, Jan 27: Sensex tanks 458 pts; HDFC Q3 profit rises 296% YoY

Indian equities began the last week ahead of the presentation of the Union Budget for the financial year 2020-21 on shaky ground with most counters collapsing like a pack of cards on Monday. 

The benchmark S&P BSE Sensex plunged 458 points, or 1.10 per cent, to settle at 41,155.12 level. In the intra-day trade, the index tanked 490 points to hit a low of 41,122.

On the NSE, the broader Nifty50 ended the day at 12,119-mark, down 129 points or 1.06 per cent. In the intra-day trade, the index erased 141 points to hit a low of 12,107.

Benchmark indices logged their second-biggest loss in the month of January.

Metal stocks were under heavy selling pressure today as investors grew increasingly anxious about the economic impact of spreading of China's Coronavirus outbreak. Tata Steel was the top loser on the S&P BSE Sensex at close, down nearly 4 per cent. Among individual stocks, JSW Steel slipped 5 per cent, and Tata Steel and Jindal Steel and Power (JSPL) dipped more than 3 per cent on the National Stock Exchange (NSE) in the intra-day trade.

India VIX -- the volatility index -- jumped nearly 11 per cent in the intra-day trade.  

Sectorally, all the key indices closed in the red barring Nifty Pharma index, which was up 1.4 per cent. The Nifty Metal index was the top loser, down 3 per cent, on the NSE, followed by Nifty PSU Bank (down 2 per cent), and Nifty Bank index (down 1 per cent). 

In the broader markets, mid and small-caps performed relatively better than the benchmarks on Monday. The S&P BSE mid-cap index slipped 0.4 per cent to settle at 15,759.01 level. The S&P BSE small-cap index, on the contrary, settled unchanged at 14,846.51. 

Important December quarter results released today: 

>> Housing finance firm HDFC Monday reported 296 per cent year-on-year rise in the standalone net profit at Rs 8,372.5 crore during the December quarter of FY20, compared to Rs 2,113.8 crore reported in Q3FY19. The NBFC extended loans totalling Rs 20,475.59 crore during the period under review. The stock was down by 2.25 per cent at close on the BSE.

>> Besides, InterGlobe Aviation – the parent company of IndiGo airline – reported a consolidated net profit of Rs 496 crore during the December quarter of FY20. The figure was 168 per cent higher from a profit of Rs 185.2 crore logged in the December quarter of FY19. At close, the stock slipped 0.54 per cent.

Actively traded stocks today:

>> Shares of UltraTech Cement climbed 2 per cent to Rs 4,753 on the BSE on Monday, in an otherwise weak market, as most of the analysts maintained ‘buy’ rating on the stock, citing improving demand scenario which would lead to sustained volume growth for the company. At close, the stock was 1 per cent higher on the index.

>> On the downside, shares of metal companies were under pressure today with the Nifty Metal index falling more than 3 per cent as investors grew increasingly anxious about the economic impact of China's spreading virus outbreak.

Among individual stocks, JSW Steel slipped 5 per cent, and Tata Steel and Jindal Steel and Power (JSPL) dipped more than 3 per cent on the National Stock Exchange. Vedanta, Hindalco Industries, Steel Authority of India (SAIL), Moil and NMDC were down in the range of 2 per cent to 3 per cent.

Here is how the global markets traded today:

Stocks tumbled on Monday as investors grew increasingly anxious about the economic impact of China’s spreading virus outbreak, with demand spiking for safe-haven assets such as the Japanese yen and Treasury notes.

Japan's Nikkei average suffered a steep 1.8 per cent loss, on track for the biggest one-day fall in three weeks. 

MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.2 per cent, although trade in the region has already slowed for the Lunar New Year and other holidays, with financial markets in China, Hong Kong and Australia closed on Monday.

In the commodities market, Brent Crude Futures were hovering around 3-month lows following concerns of demand disruption following the outbreak of Coronavirus in China. At 3:15 pm, the futures were at $57.99 per barrel-mark, down over 3 per cent. WTI Crude, on the other hand, was at $52.41, down by a similar percentage.