Benchmark indices continued to trade lower following Asian stocks that tumbled on Friday after Wall Street shares suffered yet another big slide amid worries over rising bond yields, while perceived havens such as the yen and Swiss franc drew demand amid the turmoil.
Japan’s Nikkei slipped 3% en route for a weekly loss of 8.6%. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.8%.
US markets remained the epicentre of the global sell-off, with the Dow plunging 4.1% and the S&P 500 sinking 3.7% overnight.
Stocks began to wobble last Friday after a healthy US labour market report sparked a spike in bond yields and fears of rising inflation which could trigger more central bank rate hikes.
Higher yields are seen hurting equities as they increase borrowing costs for companies and reduce their risk appetite. They also present a fresh alternative to investors, who may choose to allocate some of their money from equities to bonds.
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HPCL Q3 profit rises 23% to Rs 19 bn; income up 13%
State-owned oil refiner Hindustan Petroleum Corp Ltd’s profit rose 22.6 per cent in the third quarter, beating estimates. Profit rose to Rs 19.50 billion ($303.05 million), compared with Rs 15.90 billion a year earlier. Analysts on average had expected a profit of Rs 15.50 billion, according to Thomson Reuters data READ MORE
Earnings impact: HPCL
Healthy outlook: Aurobindo Pharma posts Rs 5.95 billion net profit in Q3
Aurobindo Pharma’s reported profit after tax at Rs 5.95 billion for the December quarter (Q3), up a mere 3% year-on-year, may have disappointed the street as the stock fell 2.4% to Rs 602 on Thursday, but a look at the core performance and future prospects provide comfort. For one, Aurobindo had to re-measure its US deferred tax assets and liabilities based on the new tax law and also recognise a one-time charge of Rs 664 million in Q3.
Thus, its net profit came below estimates of Rs 6.63 billion. CLICK HERE FOR FULL STORY
Bharat Forge: Market share gains, new products helped to outperform in Q3
The Bharat Forge stock was up nearly 8% on a better-than-expected December quarter performance, a strong outlook for the March quarter and FY19, and investments in an electric vehicle start-up. Top line growth of 47% over the year-ago period was led by 38% growth in volumes, while the rest came from increasing share of value-added products. READ MORE
Moody’s ups outlook on IOB and Central Bank to positive from stable
Global ratings agency Moody’s has revised the outlook on two Indian public sector lenders, the Indian Overseas Bank (IOB) and Central Bank of India (CBI), from “stable” to “positive”.
The positive outlook reflects the upward pressure that could develop on the banks’ long-term ratings if capital positions continue to improve over the next 12-18 months due to capital infusions from the government, Moody’s said in statement on Friday. CLICK HERE FOR FULL STORY
Index Current Pt. Change % Change
S&P BSE SENSEX 33,999.80 -413.36 -1.20
S&P BSE SENSEX 50 10,910.66 -116.26 -1.05
S&P BSE SENSEX Next 50 34,422.79 -209.35 -0.60
S&P BSE 100 10,850.64 -107.75 -0.98
S&P BSE Bharat 22 Index 3,681.85 -30.58 -0.82
GMDC shares gained 4% as profit in Q3 increased sharply by 68.8% to Rs 78.5 crore compared to Rs 46.5 crore in year-ago.
Revenue from operations jumped 33.1% to Rs 506.1 crore, from Rs 380.3 crore in same period last year. Operating profit shot up 98.6% to Rs 131.3 crore and margin 850 basis points to 25.9% compared to same quarter last year.
Indiabulls Real Estate surges 8% on business restructuring plan
Indiabulls Real Estate moved higher by 8% to Rs 230 on BSE in noon deal after the Mumbai-based real estate said that its board will meet next week to consider the business restructuring plan that it considered in April last year.
“The board of directors is scheduled to meet on Wednesday, February 14, 2018, to consider the various options and recommendations of the committee constituted for the reorganization/ restructuring of the existing residential and commercial office leasing businesses of the Company and to take appropriate decisions, as required,” Indiabulls Real Estate said in a regulatory filing. READ MORE
Steel and mining companies still bearing the brunt of ban in Karnataka, Goa
Steel and mining companies operating in mineral-rich states of Karnataka and Goa till date bear the brunt of the iron ore mining ban, which brought the two industries onto their knees between 2011 to 2014.
“Till today, we regret the expansion opportunity we lost due to the ban in Karnataka. As per our business plan, JSW Steel was to have 16 million tonne capacity at Vijaynagar alone by 2012. We are still at 12 million tonnes here (at Vijaynagar),” deputy managing director of the company Dr Vinod Nowal. CLICK HERE FOR FULL STORY
Sensex top gainers and losers
Surya Roshni up 12% on order win of Rs 839 million; zooms 42% in one week
Surya Roshni hits record high of Rs 522, up 12% on BSE in intra-day trade after the company said it has received an order worth of Rs 839 million for supply of LED street and tube lights.
“The Company has obtained orders for supply of LED street lights under SLNP (Street light National Program) and for supply of LED tube lights aggregating to Rs 839 million from Energy Efficiency Services Limited (EESL),” Surya Roshni said in a regulatory filing. READ MORE
Malvinder & Shivinder Singh took Rs 5 bn out of Fortis without board nod
India’s tycoon Singh brothers took at least Rs 5 billion ($78 million) out of the publicly-traded hospital company they control without board approval about a year ago, people with knowledge of the matter said READ THE FULL STORY HERE
Shivinder M Singh, vice-chairman, Fortis Healthcare Shivinder M Singh, vice-chairman, Fortis Healthcare
Nirmal Bang maintains ‘accumulate’ rating on ACC
Despite a rise in interest costs, ACC’s APAT stood at ~Rs 2 billion. We have moved forward our valuation to CY19E earnings and valued ACC based on 13.0x CY 2019E EV/EBITDA and $140 CY 2019E EV/mt to arrive at a target price of Rs 1,891. We have retained Accumulate rating on the stock.
Reliance Securities on Hexaware
Notwithstanding Hexaware’s differentiated business strategy, we believe its near-term growth will be a challenge owing to client-specific issues. Notably, the stock has substantially outperformed the broader market over the past year and in light of expected slower growth, current valuations at 19.6x/17.0x CY18E/CY19E EPS seem to be prohibitive, in our view. Thus, rolling over our estimates to CY19E EPS, we downgrade our recommendation on the stock to REDUCE from HOLD with a revised target price of Rs 313 (from Rs 285 earlier).
Vakrangee hits 5% upper circuit after falling 62% in nine trading days
Vakrangee is locked in upper circuit of 5% at Rs 202, recovering 10% from its early morning low on BSE with no sellers seen on the counter. The stock opened 5% lower at Rs 183, against its Thursday’s close of Rs 192 on BSE. READ MORE
Malvinder & Shivinder Singh said to have taken Rs 5 bn out of Fortis, say reports
India’s oil hunger to double despite its electric car ambitions
Even though India aspires to sell only electric vehicles by 2030, it still sees gasoline and diesel consumption doubling over that period. The two ideas may not be contradictory.
Electric vehicles will take time to become affordable enough for price-sensitive Indian masses, according to the country’s energy forecaster. READ MORE
Sugar shares in focus; Dhampur, Mawana, Dwarikesh up over 4%
Shares of sugar companies were trading higher by up to 20% on BSE in otherwise weak market after the government imposed a limit on the amount of sugar that mills can sell in the market during February and March.
The market price of Avadh Sugar & Energy, Dhampur Sugar Mills, Magadh Sugar, Mawana Sugars, Dwarikesh Sugar and Uttam Sugar Mills were trading higher by more than 4% on BSE. READ MORE
Cement, two-wheelers and building materials. Stocks you should avoid now
The steep increase in domestic and global bond yields may have stirred the market out of its complacency and into recognizing that the deterioration may be here to stay for longer than earlier, says Sanjeev Prasad, executive director and co-head, Kotak Institutional Equities in a recent co-authored report with Sunita Baldawa and Anindya Bhowmik. READ MORE
Index Current Pt. Change % Change
S&P BSE SENSEX 33,917.72 -495.44 -1.44
S&P BSE SENSEX 50 10,873.12 -153.80 -1.39
S&P BSE SENSEX Next 50 34,276.86 -355.28 -1.03
S&P BSE 100 10,811.97 -146.42 -1.34
S&P BSE Bharat 22 Index 3,672.60 -39.83 -1.07
CAG seeks Sebi explanation on losses due to long-term capital gains benefit
The Comptroller and Auditor General of India (CAG) has written to the Securities and Exchange Board of India (Sebi) seeking an explanation on the loss incurred by the exchequer from misuse of the long-term capital gains (LTCG) exemption.
According to sources, the market regulator has identified loss worth Rs 150 billion due to price manipulation on the stock market platform to avail the LTCG benefit. So far, Sebi has passed nine interim orders in the matter. READ MORE
Fortis Healthcare turns volatile after promoters Singh brothers resignation
The stock of Fortis Healthcare has turned volatile a day after the promoters Malvinder Mohan Singh and Shivinder Mohan Singh announced late on Thursday their decision to resign from the board of the hospital chain.
The stock opened 2% lower at Rs 123 on BSE, bouncing back 28% to hit high of Rs 157 in intra-day trade so far on back of heavy volumes. READ MORE
Glenmark Pharma declines 9% on weak Q3 results
Glenmark Pharmaceuticals has fallen 9% to Rs 524, its 52-week low on BSE in early morning trade after the company reported 78% fall in its consolidated net profit at Rs 1.05 billion for the quarter ended December 2017 (Q3FY18) on sharp decline of US sales, despite growth in domestic formulations as well as other geographies. It had reported a net profit of Rs 4.77 billion for the previous corresponding quarter.
The consolidated revenue during the quarter under review declined 13% to Rs 22 billion as against Rs 25 billion in the corresponding quarter of previous fiscal. READ MORE
S&P BSE Sensex 33,932.01 Up -1.40%
Nifty 50 10,440.85 Up -1.29%
S&P BSE 200 4,566.07 Up -1.20%
Nifty 500 9,219.80 Up -1.10%
S&P BSE Mid-Cap 16,522.36 Up -0.76%
S&P BSE Small-Cap 18,006.43 Up -0.69%
Global sell-off: Why stock markets crash – lessons from recent history
Stock markets around the world suffered sudden, heavy losses on February 5 and 6. Following a 4.6% drop in the Dow Jones on the Monday, the Japanese Nikkei index fell by 4.6%, and European markets followed suit, with the FTSE 100 down around 2% in the first hour of trading on Tuesday. There was a rebound on February 7, but things remain turbulent. The phrase “when the US sneezes, the rest of the world catches a cold” comes to mind.
The main culprit seemed to be fears of inflation hikes in the US. If inflation is up, the government may soon start raising interest rates to contain it. And when interest rates increase, this reduces the return investors get on stocks, making them less desirable – hence the sell-off. This means that, historically, when interest rates rise, stock prices tend to decrease. CLICK HERE FOR FULL STORY
Bond yields fall on rate status quo hope; Rs 110 bn bond auction on Friday
Bond prices rose from their Wednesday level, reacting to the fact the Reserve Bank might pause rates for long.
As prices rise, bond yields fall. The yields on the 10-year bond closed at 7.47% on Thursday, down from its previous close of 7.53%. CLICK HERE FOR FULL STORY
Nifty Realty cracks
Index Current Pt. Change % Change
S&P BSE SENSEX 33,919.77 -493.39 -1.43
S&P BSE SENSEX 50 10,864.52 -162.40 -1.47
S&P BSE SENSEX Next 50 34,125.13 -507.01 -1.46
S&P BSE 100 10,797.45 -160.94 -1.47
S&P BSE Bharat 22 Index 3,663.44 -48.99 -1.32
Sensex gainers and losersbusiness-standard