Sensex Ends Over 200 Points Lower; Nifty Halts Four-Day Rally

Indian equity benchmarks ended lower as investors assessed the rising tensions between India and Pakistan.

The S&P BSE Sensex ended 239.67 points lower at 35,973.71 and the NSE Nifty 50 halted a four-day rally to end at 10,835.30, down 0.41 percent.

The market breadth was tilted in favour of sellers. About 1,115 stocks declined and 605 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges ended lower, led by the NSE Nifty Realty Index’s 1.6 percent decline. On the flipside, the NSE Nifty Media Index as the top sectoral gainer, up 3.2 percent.

Shares of the post production company rose as much as 18.7 percent, the most since August 2018, to Rs 61.40.

“DNEG, Prime Focus‘ creative services arm, was recognised at the Oscar‘s in Los Angeles for the work on First Man with a fifth Academy Award for best visual effects,” it said in a media statement on the exchanges.

Indian equity benchmark NSE Nifty 50 pared losses after falling over 150 points intraday.

Kotak Mahindra Bank Ltd.’s board today approved increasing ceiling limit on the total shareholding of Foreign Institutional Investors and Foreign Portfolio Investors to 45 percent from the current limit of 43 percent with immediate effect, it said in a statement on the exchange.

European equities started Tuesday trading on a negative note, with all the sectors opening in the red as automakers and miners paced the declines amid tariff concerns.

Varun Beverages Ltd.’s board approved raising up to Rs 1,500 crore through Qualified Institutions Placement subject to shareholders’ approval, according to its statement on the exchanges.

About 12.4 lakh shares of Federal Bank changed hands in a block deal, according to Bloomberg data. Buyers and sellers were not known immediately.

Indian equity benchmarks recovered from day’s low.

The S&P BSE Sensex traded 140 points lower after falling nearly 500 points intraday and the NSE Nifty 50 traded near 10,850.

Seven out of 11 secotral gauges compiled by NSE declined, led by the NSE Nifty Realty Index’s 1.58 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 0.48 percent.

Shares of the real estate companies fell in today’s trade, led by the declines in Indiabulls Real Estate Ltd. and Sunteck Realty Ltd.

Shares of TVS Motor Company Ltd. extended fall for the second day and declined as much as 3.1 percent to Rs 448.30.

Trading volume was more than double its 20-day average, Blomberg data showed. The stock declined 33 percent in the past 12 months compared to an 4.4 percent advance in the Sensex.

Shares of the food processing company rose as much as 8.6 percent, the most in nearly a month, to Rs 344.

KRBL traded at 16 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the Royal-Enfield parent halted its two-day rally and fell nearly 1.4 percent intraday to Rs 20,427.

The company said the labour strike at its Oragadam facility in Tamil Nadu impacted output of 3,200 motorcycles, according to its statement on the exchanges. The entire workforce reported to work from Feb. 23, the filing said.

• Indian equity benchmarks traded off day’s low.
• The S&P BSE Sensex Index traded 300 points lower at 35,905 after falling nearly 500 points intraday and the NSE Nifty 50 Index traded at 10,784.
• The market breadth still remained tilted in favour of sellers. About 1,391 stocks declined and 259 shares advanced on NSE.

Nifty’s 10,700 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract jumped 435.71 percent to Rs 63.75. Over 6.9 lakh shares were removed from the open interest which stood at over 28.5 lakh shares.

Shares of DHFL fell for the second consecutive trading session and declined as much as 7.4 percent to Rs 126.60.

ICRA downgraded the company’s commercial papers worth Rs 8,000 crore to ‘A2+’ from ‘A1+’. That company responded by saying that the rating action by ICRA is not merit based at all and that it has not taken cognizance of DHFL’s intent to extinguish CPs by end of March and the fact that it is in advanced stages of fund-raising transactions.

The stock had declined 77.8 percent over the past year compared to a 5.4 percent advance in the Sensex.

Shares of the New Delhi-based auto parts extended gains for the fifth straight trading session and rose as much as 6.4 percent to Rs 1,487.75.

Sharda Motor Industries entered into JV agreement with Eberspaecher Exhaust Technology. The company says that in order to comply with Bharat Stage VI norms, the JV will develop, produce and sell exhaust after-treatment systems for Indian commercial vehicle manufacturers, according to its statement on the exchanges. The products will be utilised in trucks and buses from 2020 onwards, the statement added.

The trading volume more than 70 times its 20-day average, Bloomberg data showed. The stock rose nearly 25 percent in the past five trading sessions.

Shares of the natural gas explorer rose as much as 14.9 percent to Rs 134.20, the highest since Oct. 08, 2018.

Trading volume was more than 30 times its 20-day average, Bloomberg data showed. The stock had declined 39 percent in the past 12 months compared to a 6.1 percent gain in the Sensex.

Indian equity benchmarks opened lower as India-Pakistan tension escalates.

The S&P BSE Sensex Index fell as much as 1.02 percent to 35,842 and the NSE Nifty 50 Index fell as much as 1.05 percent to 10,765.55.

The market breadth was tilted in faovur of sellers. About 1,192 stocks declined and 310 shares advanced on National Stock Exchange.

All the sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 2.6 percent decline.

The Indian opened lower against the U.S. dollar. The home currency depreciated as much as 0.4 percent to 71.26 against the greenback.

In the bond market, investors continued to be troubled by firm Brent prices, a weak rupee, strong issuance pipeline and a deficit banking system liquidity, DBS analysts said in note.

The yield on India’s most-traded debt due January 2028 dropped two basis points to 7.58 percent on Monday while that on new 10-year bonds due January 2029 held steady at 7.41 percent. States will sell a cumulative Rs 20,650 crore of bonds later in the day, a sale which will test investor appetite.

Key highlights from the conversation:

• The markets were very clear that this is going to happen.
• We rode a global rally on stop of this uncertainty.
• As far as market participant is concerned, it's not good for us.
• It's coming at a time when we were just about getting into the emerging market rally and it will just stall us for the day at this point of time.
• If we ever catch the emerging market rally again, you will see more domestic selling coming through.
• The reaction is not only on this episode, the economic issue is also playing on the domestic investors mind.

ANI, citing unnamed Indian Air Force sources, reported that a group of Indian fighter jets struck a major terrorist camp across the Line of Control at 3:30 a.m.

Catch all the live updates here.

F&O Cues

• Nifty February futures closed trading at 10,887, premium of 7 points.
• Max open interest for Feb. 28 series at 11,000 Call (open interest at 38.4 lakh shares).
• Max open interest for Feb. 28 series at 10,700 Put (open interest at 35.4 lakh shares).

Stocks In F&O Ban

• In ban: Adani Enterprises, Adani Power, Allahabad Bank, IDBI, Jet Airways, Reliance Power
• Out of ban: PC Jeweller

Put-Call Ratio

• Nifty PCR at 1.46 versus 1.37.
• Bank Nifty PCR at 1.37 versus 1.08.

UBS on Eicher Motors

• Maintained ‘Sell’ with a price target of Rs 19,000.
• Dealers optimism fading; growth lagging industry in most states.
• Dealers’ outlook more mixed; financing lever continues to support demand.
• Royal Enfield growing slower than industry in almost all regions.

Credit Suisse on IIFL Holdings

• Maintained ‘Underperform’; cut price target to Rs 315 from Rs 400.
• Wealth management yields could be volatile with changing revenue model.
• Regulatory issues could be a distraction on stock.
• EPS estimates fall up to 25 percent on slower growth estimates in lending.

Goldman Sachs on Reliance Industries

• Maintained ‘Buy’; hiked price target to Rs 1,455 from Rs 1,380.
• Retail business key earnings growth pillar; see significant growth potential.
• Market share gains for organized retail players to aid growth.
• Raise price target to capture higher retail value.

HSBC on Coal India

• Maintained ‘Buy’; cut price target to Rs 320 from Rs 360.
• Cut price target to factor in lower valuation multiple and lower Ebitda growth.
• Cheap stock with improving coal deliveries over past three months.
• Volume growth is the key.

• GVK Power & Infrastructure and Cantabil Retail India to move into short term ASM framework.
• GVK Power & Infrastructure and Cantabil Retail India price band revised to 10 percent

• Avadh Sugar & Energy: LIC sold 58,300 shares or 0.58 percent equity at Rs 475.83 each.
• National Aluminum Company: ICICI Prudential MF sold 1.24 crore shares or 0.67 percent equity at Rs 48.03 each.

Astra Microwave Products

• Ratnabali Capital Markets acquired 7.62 lakh shares or 0.88 percent equity at Rs 78 each.
• HDFC MF sold 9.81 lakh shares or 1.13 percent equity at Rs 78 each.

CESC Ventures

• Canara Robeco MF acquired 1.81 lakh shares at Rs 434.2 each
• Canequity Diversified sold 1.81 lakh shares at Rs 434.2 each

• Britannia Industries Ltd. will replace state-run oil retailer Hindustan Petroleum Corporation Ltd. to enter the Nifty 50 Index from March 29. The replacement will also be applicable to Nifty 50 Equal Weight Index.
• Lupin received U.S. FDA approval for Methylprednisolone tablet. The company will be able to market generic version of Pharmacia and Upjhon Company’s Medrol Tablets. These tablets are used to treat neurological and endocrine disorders.
• Bharti Airtel to deploy Ciena’s platform network pan India. The telecom company says that the new backbone network will work with data rates of 400Gbps and higher to create a scalable network. Board to consider raising funds on Feb. 28.
• DHFL: ICRA downgrades the company’s commercial papers worth Rs 8,000 crore to ‘A2+’ from ‘A1+’.
• Adani Enterprises clarified on the news of its defense arm winning contract worth $2 billion that there no such developments as of now. Adani was also the highest Bidder to manage five Indian airports, the Airports Authority of India said.
• Tejas Networks launched broadband product. The company says the product can deliver wireline as well as wireless services
• Jet Airways clarified that is in talks with stakeholders and to ensure that the company becomes current on its salary dues. The airline company also clarified that news of SBI is mulling insolvency via NCLT to recover loan is speculative in nature.
• ADF Foods: SEBI imposed penalty of Rs 1.02 crore on company’s promoter Bhavesh Thakkar, Priyanka Thakkar and for others in an insider trading case.
• Sharda Motor Industries entered into JV agreement with Eberspaecher Exhaust Technology. The company says that in order to comply with Bharat Stage VI norms, the JV will develop, produce and sell exhaust after-treatment systems for Indian commercial vehicle manufacturers. The products will be utilised in trucks and buses from 2020 onwards.
• UFO Moviez filed an appeal before NCLT, challenging the tribunal’s decision on merger plan with Qube Cinemas.
• Thermax to acquire shareholding of its two German partners in joint venture Thermax SPX Energy Technologies.
• Bliss GVS Pharma: Board approved increasing FPI limit from 24 percent to 74 percent in the company.
• Sun Pharma: Raksha Valia releases pledge on 1.17 crore equity shares.
• DHFL: Company said that the rating action by ICRA is not merit based at all. It has not taken cognizance of DHFL’s intent to extinguish CPs by end of March and the fact that it is in advanced stages of fund-raising transactions.

• Feb. 28: India eight infrastructure industries data for January.
• Feb. 28: India Q4 GDP data. (Bloomberg estimates at 6.7 percent; prior 7.1 percent)
• Feb. 28: India Q4 GVA data. (Bloomberg estimates at 6.5 percent; prior 6.9 percent)
• Feb. 28: India fiscal deficit data for January.
• March 1: Nikkei India Manufacturing PMI for January. (Prior 53.9)
• March 1: Automakers to announce monthly sales data for January.

• Federal Reserve Chairman Jerome Powell delivers semiannual testimony on monetary policy and the state of the economy over two days to House and Senate committees.
• U.K. Prime Minister Theresa May updates the House of Commons on Brexit talks as the March 29 deadline nears for Britain to leave the EU. Lawmakers will vote on Feb. 27.
• President Donald Trump and North Korea leader Kim Jong Un are expected to meet for a second summit beginning on Tuesday.
• Thursday brings fourth quarter U.S. GDP.

• Brent crude ended 3.5 percent lower at $64.76 per barrel.
• West Texas Intermediate was steady at $55.48 a barrel. It slid 3.1 percent in the previous session.
• Gold was at $1,327.67 an ounce.

London Metal Exchange

• Nickel ended 0.12 percent lower.
• Copper ended a little changed.
• Aluminium halted a three-day rally, ended 0.37 percent lower.
• Lead ended higher for the fourth day, up 0.58 percent.
• Tin ended higher for the fifth day, up 1.14 percent.
• Zinc ended 0.18 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, extended losses and fell as much as 0.9 percent to 10,794.50 as of 8:10 a.m., after a Pakistan army spokesperson alleged that Indian fighter jets violated an agreed border between the two countries.

Asian stocks were mixed on Tuesday, with several markets slipping as the rush of optimism on U.S.-China trade talks from early Monday faded some.

Shares fell in Hong Kong and Australia and were little changed in Japan and China.