Morning Notes
31st Jan, 2020
 

Trading Range:

Nifty opened gap up at 12148 on Thursday and made a high and low of 12150 and 12011 respectively before closing negative at 12036.

Review/Outlook:

For the day, support for Nifty exists at 11980 and 11920 levels whereas resistance for Nifty stands at 12090 and 12160 levels.

Review/Outlook:

Bank Nifty opened flat at 30889, made a high of 30910, low of 30521, and closed negative at 30647. For the day, support for Bank Nifty exists at 30500 and 30300 levels whereas resistance for Bank Nifty stands at 30800 and 31000 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,914 -0.69
Nifty 12,036 -0.77
BSE 200 5,074 -0.90
BSE Midcap 15,556 -1.26
BSE Smallcap 14,704 -0.92
Dow Jones 28,859 +0.44
NASDAQ 9,299 +0.26
 

DERIVATIVES INDICATORS FOR JAN 31, 2020:

NIFTY 12036.50 (-93.70) (-0.77%)
NIFTY FEB FUTURE 12059.90 (+24.10 Points Premium)
NIFTY PCR - OI 0.98 (-0.15)
NIFTY OPEN INTEREST 1.07 Cr. (-28.58%)
INDIA VIX 16.79 (+1.82%)
NIFTY ROLLOVER 66%

NIFTY OPTIONS ACTIVITY (27-FEB SERIES)

CALL 12100 CE +3.34 lac Shares
CALL 12500 CE +5.72 lac Shares
PUT 12000 PE +6.67 lac Shares
PUT 12110 PE +1.16 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,371 -0.50
Bankex 35,046 -0.62
PSU 6,673 -1.18
Healthcare 14,091 -1.40
IT 16,069 -1.02
 
Market Turn Over (`cr)
Index 30/01 29/01
BSE Cash 1,852 2,229
NSE Cash 38,319 38,134
NSE F&O 3,120,411 1,736,105
BSE Delivery % 49.56 47.51
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 17.82 81.19
BSE 200 22.39 77.11
BSE 500 22.55 77.05
Total BSE 29.73 64.00
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 52.14 -2.23
Gold Rs./ 10 Gms 40975.00 +1.55
Silver Rs./ Kg 46914.00 +2.99
Rs.- US $ 71.57 +0.27
Rs.- Euro 78.96 +0.42
FII (Rs cr )
30/01* 29/01*
FIIs -1442.25 -785.91
MFs - -

*Date refers to the day of activity and not the day on which it is reported.

 
Details Buy Sell Open interest at the
end of the day
Net Position
No. of
Contracts
Value
(Rs. Cr)
No. of
Contracts
Value
(Rs. Cr)
No. of
Contracts
Value
(Rs. Cr)
Value
(Rs. Cr)
Index Futures    1,04,049.00       8,605.15    1,20,842.00     10,139.38    1,16,038.00       9,558.11  (1,534.23)
Index Options  58,15,441.00  3,96,825.94  57,71,298.00  3,92,950.79    4,89,166.00     40,151.97   3,875.15
Stock Futures    4,28,945.00     29,328.37    4,29,404.00     29,153.13  13,85,845.00     91,310.02      175.24
Stock Options       26,552.00       1,890.14       24,695.00       1,776.44       15,334.00         911.76      113.70
Total  63,74,987.00  4,36,649.60  63,46,239.00  4,34,019.74  20,06,383.00  1,41,931.86   2,629.86
Corporate News
Bajaj Auto’s long serving Chairman Rahul Bajaj will step down from executive role to become a non-executive director, the company said on Thursday. However, he will continue as the Chairman of the company with effect from April 1, 2020. (BL).
Ralf Speth, Jaguar Land Rover Automotive Plc (JLR)’s Executive Director and Chief Executive Officer, has decided to retire from his current role at the end of his contract term in September 2020, Tata Motors Ltd said in a stock exchange filing on Thursday. (ET).
The proposed merger of REC with state-owned shadow banking firm Power Finance Corporation has hit a roadblock and is not likely to happen in near future as it would violate Reserve Bank norms on the exposure of non-banking financial companies (NBFCs), according to sources. (BS).
The US Food and Drug Administration (USFDA) has cautioned Aurobindo Pharma Ltd that its oral solids formulation manufacturing facility may be subject to regulatory actions. (ET).
The water and effluent treatment business of L&T Construction has bagged an EPC contract from Narmada Valley Development Authority (NVDA), Government of Madhya Pradesh to execute the Indira Sagar – Parwati Phase III & IV Lift Micro Irrigation Project.. (BL).
Kotak Mahindra Bank to withdraw court case against RBI, to pare promoter stake to 26% in six months.(ET).
Quarterly Earnings
Abrasives and ceramics maker Carborundum Universal posted a consolidated profit after tax of Rs.61 crore for the quarter ended December 2019, a 3.4 per cent increase from Rs.59 crore recorded for the same period last year. Consolidated sales of the Murugappa Group company decreased by 6 per cent during the quarter to Rs.642 crore from Rs.683 crores in the corresponding quarter of the previous year. (BL).
Laurus Labs Ltd’s net profit more than tripled at Rs.73.5 crore in the third quarter ended December 31, 2019 as against ₹17.8 crore in the corresponding quarter of previous financial year. The total revenue of the Hyderabad - based company increased 38 per cent at ₹730 crore (₹529 crore). (ET).
Automobile manufacturer Tata Motors on Thursday and reported a consolidated profit of Rs 1,738 crore for the October to December quarter of 2019-20 (Q3 FY20). In the same quarter last year (Q3 FY19), the company had posted a record loss of Rs 26,993 crore due to one-time non-cash charge for asset impairment of Jaguar Land Rover (JLR) at Rs 27,838 crore. (ET).
Birla Corporation on Wednesday reported a 200 % year-on-year jump in net profit to Rs 81 crore in the third-quarter (Q3) ended December 31, 2019. The growth in net profit follows a 10.65 % rise in total income to Rs 1,735 crore in the said quarter over Rs 1,568 crore topline in the corresponding period a year ago. This was achieved despite muted growth in sales by volume and realization. While total sales by volume for the December quarter grew 7% year-on-year to 3.43 million tons, realization per ton grew 3.49% to Rs 4,712, the company said in a statement issued after the board meeting. (ET).
Jagran Prakashan Ltd, the publisher of Hindi daily Dainik Jagran, on Thursday reported a 15.97 per cent increase in consolidated profit after tax (PAT) to Rs 81.61 crore for the third quarter ended on December 31, 2019. The company had posted a PAT of Rs 70.37 crore during October-December quarter a year ago, Jagran Prakashan Ltd (JPL) said in a BSE filing. However, its revenue from operations was down 10.53 per cent to Rs 563.29 crore during the quarter under review, as against Rs 629.65 crore in the corresponding quarter a year ago. (BL).
Crompton Greaves Consumer Electricals Ltd (CGCEL) on Thursday reported a two-fold jump in consolidated net profit for the third quarter ended December. CGCEL on Wednesday reported a two-fold jump in consolidated net profit to Rs 160.97 crore for December quarter. The company had posted a net profit of Rs 79.67 crore in October-December quarter a year ago, CGCEL said in a BSE filing. Total income during the quarter under review stood at Rs 1,088.83 crore, up 4.42 per cent from Rs 1,042.69 crore in the year-ago period. (ET).
IT firm Persistent Systems on Thursday reported a 4.1 per cent fall in consolidated net profit to Rs 87.9 crore for December 2019 quarter. The company had posted a net profit of Rs 91.7 crore in the year-ago period, Persistent Systems said in a regulatory filing. Its revenue from operations, however, grew 6.7 per cent to Rs 922.7 crore in the quarter under review from Rs 864.2 crore in the October-December 2018 period, it added. (ET).
LIC Housing Finance on Thursday reported consolidated net profit of Rs 602.25 crore in October-December of 2019-20, marginally lower than a year ago. The company had posted a net profit of Rs 607.29 crore during the same quarter of the previous financial year. The consolidated income in Q3 of FY20 rose to Rs 5,006.12 crore, from Rs 4,465.76 crore in same period of FY19. (BL).
Homegrown FMCG major Dabur India Ltd on Thursday reported a 8.62 per cent increase in consolidated net profit at Rs 398.87 crore for the third quarter ended December. The company had posted a consolidated net profit of Rs 367.21 crore in October-December quarter a year ago, Dabur India said in a BSE filing. Revenue from operations rose 6.99 per cent to Rs 2,352.97 crore during the quarter under review as against Rs 2,199.21 crore in the corresponding quarter of the previous fiscal. (ET).
FMCG firm Colgate-Palmolive (India) on Thursday reported a 3.64 per cent increase in net profit at Rs 199.1 crore in the third quarter ended on December 31, 2019. The company had posted a net profit of Rs 192.1 crore in the same quarter a year ago, Colgate-Palmolive (India) said in a regulatory filing. The company had posted a net profit of Rs 192.1 crore in the same quarter a year ago, Colgate-Palmolive (India) said in a regulatory filing. Total income during the period under review stood at Rs 1,152.97 crore as compared to Rs 1,107.26 crore in the year-ago quarter, a growth of 4.13 per cent, it added. (ET).
Orient Green Power Company on Thursday reported narrowing of its consolidated net loss to Rs 39.68 crore for the quarter ended December 2019, mainly due to higher revenues. The company's consolidated net loss stood at Rs 65.74 crore in the corresponding quarter of the previous fiscal, it said in a BSE filing. Total income rose to Rs 43.01 crore in the quarter under review from Rs 33.62 crore earlier. The board of directors of the company also approved reduction of face value of its equity share of Rs 10 each to Rs 5 each by reducing the share capital from Rs 7,507,239,770 to Rs 3,753,619,885. (BL).
IndianOil (IOC) on Thursday reported a three-fold jump in standalone net profit at Rs 2,339 crore for December quarter compared with Rs 716.82 crore in the same quarter last year. Profit rose even as net sales dropped 9.57 per cent to Rs 1,44,819.88 crore from Rs 1,60,137.96 crore in the same quarter last year. (ET).
Essar Ports on Thursday reported 20 per cent growth in cargo volumes across four of its terminals at 14.02 million tonnes (MT) for the quarter ended December 2019. The company handled 11.67 million tonnes in the corresponding quarter of previous fiscal, Essar Ports said in a statement. (ET).
Bajaj Auto on Thursday reported a 15 per cent year-on-year rise in net profit at Rs 1,262 crore for December quarter compared with Rs 1,102 crore in the same quarter last year. Revenue from operations rose 3 per cent to Rs 7,640 crore from Rs 7,436 crore in the year-ago quarter. Revenue from operations rose 3 per cent to Rs 7,640 crore from Rs 7,436 crore in the year-ago quarter. (ET).
Drug firm Strides Pharma Science on Thursday posted 68.8 per cent decline in consolidated profit at Rs 92.33 crore for the quarter ended December 31, 2019. The company had posted consolidated profit of Rs 296.43 crore in the year-ago period, Strides Pharma Science said in a regulatory filing. However, the consolidated income of the company increased to Rs 744.66 crore in the October-December period, as against Rs 579.54 crore a year ago. (ET).
FMCG firm Marico on Thursday reported a nearly 10 per cent increase in consolidated net profit to Rs 276 crore for the quarter ended December 2019 helped by gross margin expansions. The company had posted a net profit of Rs 251 crore in the October-December quarter a year ago, Marico said in a BSE filing. However, net sales dropped by 1.98 per cent to Rs 1,824 crore during the quarter under review compared to Rs 1,861 crore in the corresponding quarter of the previous fiscal. (BL).
Equitas Small Finance Bank, which is in the process of making an initial public offer, has reported 51% rise in profit at Rs 94 crore for December quarter compared with Rs 62 crore in the year ago period. Net interest income grew by 23% to Rs 384 crore, while advances grew 37% to Rs 14,615 crore. (BL).
Economy and Sector News
Air compressor manufacturing major Elgi Equipment’s Metrology department has been accredited by NABL (National Accreditation Board for Testing and Calibration Laboratories) for performance consistency of its 400+ compressed air systems. (BL).
The Union government has put scores of small textile exporting companies on the verge of closure by withdrawing export concessions with retrospective effect. In a recent notification, the Government has not only announced that it will withdraw the benefit of 4 per cent MEIS (merchandise export incentive scheme) on exports of made-ups and garments with retrospective effect from March, but also recover MEIS incentive given till July. (ET).
The domestic airline industry is expected to post a net loss of about Rs.7,800 crore in fiscal 2020 as against an estimated net loss of approximately Rs.10,000 crore in fiscal 2019, credit rating agency ICRA said. (BL).
The aviation industry will need an equity infusion of approximately ₹22,500 crore over the next three years to stay afloat, according to credit rating agency ICRA. Excluding state-run Air India, the domestic aviation industry is expected to report a net loss of ₹1,500 crore, with a total debt of ₹7,000, for FY20. The two listed airlines, IndiGo and SpiceJet, together lost ₹1.8 crore per day in the first half of the fiscal. However, this is lower than the ₹5.5-crore per-day reported in H1 FY19, said ICRA. (ET).
* ET - Economic Times, BS - Business Standard, BL - Business Line, TOI - Times of India, Mint, IE - Indian Express, BT - Business Today, IE - Indian Express
Global Markets
 

DJIA and NASDAQ Composite

US markets closed higher on Thursday as indices were buoyed by a solid rally late in the session despite the World Health Organisation declaring the Wuhan coronavirus a global emergency. The Dow Jones Index closed at 28,859, up 124.99 points by 0.44%. The Standard & Poors 500 index closed at 3,284, up 10.26 points by 0.31%. The Nasdaq Composite Index closed at 9,299, up 23.77 points by 0.26%.

FTSE 100

UK markets remained in the red at the close on Thursday, as the pound rallied after the Bank of England left interest rates unchanged, with worries about the spread of the coronavirus denting risk appetite. The FTSE 100 index closed at 7,382, down 101.61 points by 1.36%.

 
 
Global Indices
30/01/2019 Clsg Chg%
Dow Jones 28,859 +0.44
NASDAQ 9,299 +0.26
FTSE 100 7,382 -1.36
Bovespa 115,528 +0.12
31/01/2020 Latest
(4:46AM IST)
Chg%
Nikkei 22,978 -1.72
Hang Seng 26,449 -2.62

Nikkei

Asian share markets started trading early in the morning on Friday on a negative note as the investors will be closely watching the US markets. Nikkei is currently trading at 22,978, down 401.65 points by 1.72%.

Precious Metals

Gold futures climbed on Thursday, sending prices to their highest finish since April 2013, as renewed worries over the spread of the coronavirus contributed to demand for haven investments.

Base Metals

The three-month zinc price on the London Metal Exchange closed at its lowest level in more than three years at the close of trading on Thursday January 30, settling below the nearby $2,200 per tonne support level, while the price of copper futures continued to decline over the afternoon.

Crude Oil

Oil futures dropped on Thursday, with U.S. prices logging their lowest settlement since early August, as worries rise over the potential economic impact from the continued spread of the coronavirus.

 
 
 

Retail Research Desk:

Akhil Rathi D: 91 22 2858 3210
Hrishikesh Yedve D: 91 22 2858 3207
Neeraj Sharma D: 91 22 2858 3208
Rohan Gawale D: 91 22 2858 3213

Karan Desai D: 91 22 2858 3221
Email: retailresearch@acm.co.in

Research Analyst Registration Number:
INH000002483
CIN: U65990MH1993PLC075388

 
 

Follow us on:

 
 
           
 

Information pertaining to Asit C. Mehta Investment Interrmediates Limited (ACMIIL): ACMIIL is a SEBI registered Stock Broker, Merchant Banker and Depository Participant. It is also a AMFI registered Mutual Fund Distributor. It does not have any disciplinary history. Its associate/group companies are Asit C. Mehta Commodity Services Limited, Asit C. Mehta Realty Services Pvt. Ltd, Asit C. Mehta Forex Pvt. Ltd, Nucleus IT Enabled Services , Asit C. Mehta Financial Services Limited (all providing services other than stock broking and merchant banking).

Disclosures
ACMIIL/its associates and its Research analysts have no financial interest in the companies covered on the report. ACMIIL/ its associates and Research analysts did not have actual/beneficial ownership of one per cent or more in the companies being covered at the end of month immediately preceding the date of publication of the research report. ACMIIL/its associates or Research analysts have no material conflict of interest, have not received any compensation/benefits for any reason (including investment banking/merchant banking or brokerage services) from either the companies concerned/third parties with respect to the companies covered in the past 12 months. ACMIIL/its associates and research analysts have neither managed or co-managed any public offering of securities of the companies covered nor engaged in market making activity for the companies being covered. Further, the companies covered neither are/nor were a client during the 12 months preceding the date of the research report. Further, the Research analyst/s covering the companies covered herein have not served as an officer/director or employee of the companies being covered.

Disclaimer:
This report is based on information that we consider reliable, but we do not represent that it is accurate or complete and it should not be relied upon such. ACMIIL or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in the report. To enhance transparency we have incorporated a Disclosure of Interest Statement in this document. This should however not be treated as endorsement of the views expressed in the report.