Market Wrap, Jan 28: Sensex ends below 41K-mark; Maruti dips 2% post Q3 nos

Metals continued to hammer Indian equities for the second straight session on Tuesday as investors weighed the impact of coronavirus to China's and the world economy. Additionally, volatility in the indices ahead of the Union Budget for 2020-21, and disappointing December quarterly result by heavyweight Maruti Suzuki invited more sellers in the markets than buyers. 

The S&P BSE Sensex plummeted 188 points, or 0.46 per cent, to end at 40,967 level.  On the NSE, the broader Nifty50 held the psychological mark of 12,000, and ended marginally above the level at 12,056, down 63 points, or 0.52 per cent.

Heavyweight Bharti Airtel declined 4 per cent in the afternoon trade today and was the top loser after media reports suggested that the company has been blacklisted by Directorate General of Foreign Trade. Reports further said, the company has been put under 'Denied Entry List' on non-fulfilment of certain export obligations under Export Promotion Capital Goods Scheme. The stock closed 4.5 per cent lower at Rs 491. So far, no clarification has been issued by the company. 

That apart, Tata Steel, Reliance Industries, and Maruti Suzuki were the other top laggards at the 30-share index. 

Maruti Suzuki on Tuesday posted 4.1 per cent year-on-year gain in consolidated net profit at Rs 1,587 crore for the December quarter on account of cost reduction efforts, lower operating expenses, lower commodity prices and reduction in the corporate tax rate. The numbers, however, missed Street estimates. Analysts at ICICI Securities, for instance, had pegged Maruti's Q3 profit after tax at Rs 2,047 crore. The stock slipped 2 per cent after the results and ended at a 1-month low of Rs 6,997.

On the upside, United Spirits jumped 15 per cent on the BSE in the intra-day trade today after the company's net profit rose 15.3 per cent YoY to Rs 235.30 crore in Q3 FY20. The profit was led largely by sharp growth in sales of Prestige and Above portfolio. The company posted its biggest single-day gain in 27 months and settled 14 per cent higher at Rs 656.

Overall, Nifty Metal index was the top drag on the NSE, down over 2 per cent at close. 

In the broader markets, weakness was witnessed in the mid-caps, while small-caps continued to fare better than the benchmarks. The S&P BSE mid-cap index ended 0.50 per cent lower at 15,680 level, while the S&P BSE small-cap was at 14,827, down 0.16 per cent.

Major corporate development:

Media reports suggest that Rakesh Jhunjhunwala, the billionaire stock market investor, is under Sebi's scanner for insider trading in education firm Aptech. Jhunjunwala and his wife own 24.24 per cent stake in the company. 

Consequently, shares of the education firm plunged 8 per cent in the intra-day trade, before settling 6.6 per cent lower at Rs 162 apiece.

Sebi is also investigating the role his brother Rajeshkumar Jhunjhunwala, as well as some board members, including investor Ramesh Damani and director Madhu Jayakumar, reports said. So far, Aptech has not issued any statement regarding the case.

Here is how global markets performed today:

Asian stocks battered on Tuesday as the death toll from coronavirus in China climbed, leaving investors fretting over the widening economic fallout from the outbreak.

MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.8 per cent. Japan’s Nikkei closed 0.6 per cent lower, while Australian shares ended 1.3 per cent down. South Korea’s Kospi index skidded 3 per cent.

In the commodities market, Brent Crude Futures were at $58.07 per barrel-mark, down 0.87 per cent.