Morning Notes
10th Feb, 2020
 

Trading Range:

Nifty opened gap up at 12151 on Friday and made a high and low of 12155 and 12074 respectively before closing negative at 12098.

Review/Outlook:

For the day, support for Nifty exists at 12040 and 11980 levels whereas resistance for Nifty stands at 12170 and 12220 levels.

Review/Outlook:

Bank Nifty opened gap up at 31367, made a high of 31368, low of 31111, and closed negative at 31202. For the day, support for Bank Nifty exists at 31000 and 30800 levels whereas resistance for Bank Nifty stands at 31500 and 31700 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,142 -0.40
Nifty 12,098 -0.33
BSE 200 5,114 -0.09
BSE Midcap 15,905 +0.44
BSE Smallcap 14,840 +0.75
Dow Jones 29,103 -0.94
NASDAQ 9,521 -0.54
 

DERIVATIVES INDICATORS FOR FEB 10, 2020:

NIFTY 12098.35 (-39.60) (-0.33%)
NIFTY FEB FUTURE 12095.90 (2.45 Points Discount)
NIFTY PCR - OI 1.40 (-0.08)
NIFTY OPEN INTEREST 1.48 Cr. (+0.50%)
INDIA VIX 16.74 (-0.24%)
NIFTY ROLLOVER 7%

NIFTY OPTIONS ACTIVITY (27-FEB SERIES)

CALL 12200 CE +1.44 lac Shares
CALL 12300 CE +2.21 lac Shares
PUT 12000 PE +0.47 lac Shares
PUT 11900 PE +0.82 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,077 -1.06
Bankex 35,675 -0.40
PSU 6,683 +0.34
Healthcare 14,282 +1.60
IT 16,124 -0.65
 
Market Turn Over (`cr)
Index 07/02 06/02
BSE Cash 3,886 3,198
NSE Cash 37,945 45,882
NSE F&O 806,709 3,544,836
BSE Delivery % 51.27 52.70
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 55.45 43.56
BSE 200 55.22 42.79
BSE 500 51.50 46.91
Total BSE 44.55 49.08
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 49.77 -1.09
Gold Rs./ 10 Gms 40644.00 +0.73
Silver Rs./ Kg 46106.00 -0.25
Rs.- US $ 71.51 +0.41
Rs.- Euro 78.31 +0.13
FII (Rs cr )
07/02* 06/02*
FIIs -100.98 +530.45
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       36,466.00       2,707.38       40,700.00       3,135.52    1,72,458.00     14,616.24    (428.14)
Index Options  21,37,225.00  1,52,869.68  21,23,594.00  1,51,844.71    6,71,924.00     56,991.95  1,024.97
Stock Futures    2,02,727.00     13,798.25    1,97,711.00     13,524.81  15,82,580.00  1,04,139.84     273.44
Stock Options       63,146.00       4,542.37       63,264.00       4,542.98       63,188.00       4,339.21       (0.61)
Total  24,39,564.00  1,73,917.68  24,25,269.00  1,73,048.02  24,90,150.00  1,80,087.24     869.66
Corporate News
As demand weakness persists in rural markets, home-grown FMCG company, Jyothy Labs, explores options to beat slowdown blues. While inventory management (reduction of stock) across select channels is one such initiative it has already taken, the company is looking at a possibility of banks financing trade channels. (BL).
State-owned Steel Authority of India Ltd (SAIL) has sought permission from Odisha and Jharkhand to auction about 70 million tonnes (MT) of fines or low-grade iron ore lying at its mines in the two states. Depending upon the Fe content, the iron ore can fetch a price of USD 40-45 a tonne to USD 62 a tonne, an expert said. (ET).
With the export of its first parcel of IMO 2020 grade Very Low Sulphur Fuel Oil (VLSFO) from Kochi to Singapore, Bharat Petroleum becomes the first oil marketing company to export this cleaner shipping fuel from the country. (BS).
Homegrown pharma firm Cipla on Saturday announced the acquisition of nutrition products portfolio from Wanbury Ltd. Homegrown pharma firm Cipla on Saturday announced the acquisition of nutrition products portfolio from Wanbury Ltd. (ET).
JK Tyre & Industries, a tyre manufacturer, is consolidating all its research and development (R&D) activities in one place at Mysuru. (BL).
Reliance Industries and its partner, BP plc of UK, will this month offer for sale more natural gas from its KG-D6 block to users as it prepares to put into production second wave of discoveries in the eastern offshore block. Reliance-BP is likely to offer as much as 5 million standard cubic meters per day (mmscmd) of natural gas for bidding from newer discoveries in KG-D6 in next few days, sources aware of the development said. (BL).
Quarterly Earnings
Hinduja Global Solutions (HGS) has posted 93.7 per cent jump in consolidated net profit at Rs 71.1 crore for December quarter 2019. HGS logged a profit of Rs 36.7 crore in October-December 2018, it said in a regulatory filing late Friday night. The company saw its revenue from operations grow 5 per cent to Rs 1,335.7 crore in the quarter under review as against Rs 1,272.6 crore in the third quarter of 2018-19. (BL).
Mahindra & Mahindra (M&M) on Saturday said its net profit plunged 73 per cent year-on-year (YoY) to Rs 380 crore in December quarter, due to loss on exceptional and one-off items worth Rs 554 crore. The figure included numbers for manufacturing unit MVML. The company had reported a profit of Rs 1,396 crore in the year-ago quarter, which included exceptional gains of Rs 519 crore. Revenue for the quarter fell 6 per cent to Rs 12,120 crore compared with Rs 12,893 crore in the same quarter last year. (ET).
Oberoi Realty has reported 7 per cent increase in consolidated net profit at Rs 148.24 crore for the quarter ended December despite fall in total income. Its net profit in the year-ago period stood at Rs 137.93 crore. Total income, however, fell to Rs 536.53 crore in the third quarter of 2019-20 from Rs 548.79 crore in the same period a year ago, according to a regulatory filing. (BL).
State-owned Container Corporation of India Ltd (CONCOR) on Friday reported a 34.92 per cent dip in its consolidated net profit to Rs 179.34 crore for the quarter ended December 31, 2019. The company had clocked a net profit of Rs 275.60 crore during the corresponding quarter a year ago, the multi-modal logistics company said in a regulatory filing to the BSE. Its total income during the October-December quarter of the current fiscal dipped to Rs 1,610.34 crore, from Rs 1,739.79 crore in the year-ago period. (ET).
Multiplex chain operator Inox Leisure Ltd on Friday reported a 3.97 per cent decline in consolidated net profit for the December quarter at Rs 35.01 crore. The company had posted a net profit of Rs 36.46 crore in the October-December period a year ago, Inox Leisure said in a BSE filing. However, total income rose 18.7 per cent to Rs 517.76 crore as against Rs 436.19 crore in the corresponding quarter last fiscal. (BL).
TV Today Network Ltd on Friday reported a 1.44 per cent fall to Rs 37.52 crore in its consolidated net profit for the third quarter ended December, 31, 2019. The company had posted a net profit of Rs 38.07 crore in the October-December quarter a year ago, TV Today said in a BSE filing. However, its total income rose 8.51 per cent to Rs 230.51 crore, against Rs 212.42 crore in the corresponding quarter of the previous financial year. (BL).
Ahmedabad-based air cooler company Symphony Ltd on Friday reported an increase of 37.83 per cent to Rs 51 crore in its consolidated net profit for the third quarter ended December 31, 2019. The company had posted a net profit of Rs 37 crore in the October-December 2018 quarter, Symphony said in a BSE filing. Its total income was up 18.57 per cent to Rs 300 crore, against Rs 253 crore in the corresponding quarter of the previous financial year. (BS).
Max India on Friday reported a consolidated net profit of Rs 366.6 crore for the third quarter ended December. The company had posted a loss of Rs 30.3 crore in the year-ago quarter. Total income during the quarter under review stood at Rs 34.23 crore as against Rs 34.84 crore in the same period of preceding fiscal. (ET).
Tata Steel reported a consolidated net loss of Rs.1,229 crore in the quarter, compared with a net profit of Rs.1,753 crore for the same quarter last year. Consolidated revenue increased 3 per cent quarter on quarter (QoQ) to Rs.35,520 crore, while India revenue climbed 5 per cent QoQ and stood at Rs.21,299 crore. Consolidated Ebitda declined 42 per cent to Rs.3,659 crore. (ET).
Entertainment Networks (India) Ltd (ENIL), which operates India’s leading private FM brand Radio Mirchi, has posted a standalone net profit of Rs.10.6 crore for the third quarter ended December. Total revenue from operations was at Rs.145.7 crore while expenses were at Rs.134.9 crore. (BL).
Consumer durables maker Whirlpool of India Ltd on Friday reported a 22.91 per cent rise in its consolidated net profit to Rs 76.49 crore for the quarter ending December 2019. The company had posted a net profit of Rs 62.23 crore in the October-December quarter a year ago, Whirlpool of India said in a BSE filing. Its total income was up 5.83 per cent at Rs 1,310.69 crore during the quarter under review as against Rs 1,238.41 crore of the corresponding quarter last fiscal. (BL).
Tube-packaging company Essel Propack Ltd on Friday reported a rise of 31.98 per cent in consolidated net profit at Rs 61.20 crore for the third quarter ended December. The company had posted a net profit of Rs 46.37 crore in the year-ago quarter. Total income for the said quarter was at Rs 714.99 crore as against Rs 697.73 crore in the year-ago period. (BS).
State-owned hydro power giant NHPC on Friday posted over two-fold jump in consolidated net profit to Rs 639.13 crore in December quarter mainly on the back of higher revenues. The company had reported a consolidated net profit of Rs 287.96 crore in the year-ago period, NHPC said in a BSE filing. Total income rose to Rs 2,279.45 crore in the third quarter of 2019-20 from Rs 1,974.92 crore a year ago. (ET).
Power transmission firm GE T&D India Ltd on Friday reported a net loss of Rs 37.7 crore during the quarter ended December 31, 2019. The company had posted a net profit of Rs 53 crore during the corresponding quarter a year ago, GE T&D said in a BSE filing. During the October-December 2019 period, its total income fell to Rs 952.1 crore from Rs 1,177.5 crore in the year-ago period. (BL).
Drug firm Abbott India on Friday reported a 59.49 per cent rise in its net profit to Rs 186.69 crore for the quarter ended December 31, 2019. The company had posted a net profit of Rs 117.05 crore for the corresponding period of the previous financial year. Its revenue from operations stood at Rs 1,078.25 crore for the quarter under consideration as against Rs 947.65 crore for the corresponding period a year ago. (BL).
Agro-chemical firm Insecticides India on Friday posted a 47.8 per cent fall in consolidated net profit to Rs 8.90 crore for the quarter ended on December 31, 2019, mainly on account of decline in institutional sales and exports. The company had clocked a net profit of Rs 17.05 crore during the December quarter of 2018-19, according to the BSE filing. Although net income rose to Rs 263.63 crore during the third quarter of 2019-20 from Rs 216.59 crore in the year-ago period, but expenses remained higher in the said period. (BL).
Cement major ACC on Friday posted 18 per cent year-on-year (YoY) rise in consolidated net profit at Rs 273 crore for the quarter ended December 31. It had reported a net profit of Rs 232 crore in the same period last year. Net sales of the company grew 5 per cent YoY to Rs 3,970 crore during the quarter under review. (BL).
Britannia Industries on Friday reported 23.26 per cent year-on-year (YoY) rise in consolidated net profit at Rs 369.88 crore for the quarter ended December 31. The FMCG major had posted a net profit of Rs 300.07 crore in the same quarter last year. Total revenue from operations increased 4.93 per cent YoY to Rs 2,982.68 crore during the quarter under review. (BS).
Cigarette maker Godfrey Phillips India on Friday reported a 39.16 per cent increase in consolidated net profit at Rs 113.89 crore in the third quarter ended December 2019. The company had posted a net profit of Rs 81.84 crore in the same quarter last fiscal, Godfrey Phillips India (GPI) said in a regulatory filing. Total revenue from operations during the quarter under review stood at Rs 797.22 crore as compared with Rs 679.33 crore in the year-ago period, it added. (ET).
UPL on Friday reported 77.54 per cent year-on-year (YoY) rise in net profit at Rs 838 crore for the quarter ended December 31. It had posted a net profit of Rs 472 crore in the same period last year. Revenue from operations increased 80.69 per cent YoY to Rs 8,892 crore during the quarter under review. (BL).
State-run NTPC on Friday reported a 22.60 per cent year-on-year (YoY) rise in net profit at Rs 3,197.73 crore for the December quarter compared with Rs 2,608.18 crore in the same quarter last year. Revenue from operations fell 0.30 per cent YoY to Rs 25,412.39 crore compared with Rs 25,491.04 crore in the year-ago quarter. The number came in much higher than Rs 23,550 crore. (ET).
Public sector lender Corporation Bank on Friday said its consolidated net profit increased seven fold to Rs 420.83 crore in third quarter ended December 31, 2019 on higher interest income, albeit provisions for bad loans surged. The bank had posted a net profit of Rs 59.94 crore during the corresponding period a year ago. Income increased to Rs 6,051.93 crore, from Rs 4,112.29 crore, the lender said in a regulatory filing. In absolute terms, the gross NPAs stood at Rs 19,557.16 crore in the quarter under review, as against Rs 21,921.42 crore a year ago. Net NPAs were valued at Rs 6,321.81 crore, down from Rs 13,521.22 crore. (ET).
Tata group airconditioner maker Voltas Ltd on Friday reported a 12.64 per cent increase in its consolidated net profit at Rs 87.95 crore in the third quarter ended December 2019. The company had posted a consolidated net profit of Rs 78.08 crore in the same quarter last fiscal, Voltas said in a regulatory filing. Revenue from operations during the period under review stood at Rs 1,492.51 crore as against Rs 1,491.78 crore in the year-ago quarter, the company said. (BL).
Homegrown FMCG major Emami Ltd on Friday reported a 5 per cent increase in its consolidated net profit at Rs 144.44 crore for the third quarter ended December 31, 2019 helped by rise in gross margins and cost control measures. It had reported a net profit of Rs 137.54 crore in October-December quarter a year ago. It had reported a net profit of Rs 137.54 crore in October-December quarter a year ago. Its total income was at Rs 828.22 crore, up 1.02 per cent, during the quarter under review, as against Rs 819.83 crore in the corresponding period of the previous fiscal. (BL).
Drug firm Alkem Laboratories on Friday reported a 89.80 per cent rise in consolidated net profit at Rs 389.96 crore for the quarter ended December. The company had posted a net profit of Rs 205.45 crore for the corresponding period of the previous fiscal. Consolidated revenue from operations stood at Rs 2,181.84 crore for the quarter under consideration as against Rs 1,926.32 crore in the same period a year ago. (BS).
India Cements Ltd on Friday reported widening of its consolidated net loss to Rs 8.79 crore for the third quarter ended December 31, 2019. The company had posted a net loss of Rs 4.32 crore in the October-December period a year ago, India Cements said in a regulatory filing. Revenue from operations was down 7.90 per cent to Rs 1,244.28 crore during the quarter under review, as against Rs 1,351.15 crore in the year-ago period. (BL).
PepsiCo India's bottling partner Varun Beverages on Friday reported narrowing of its consolidated net loss at Rs 53.9 crore for the quarter ended December 31, 2019. The company had posted consolidated net loss of Rs 70.8 crore in the year-ago period, Varun Beverages said in a regulatory filing. The company's consolidated income increased to Rs 1,275.5 crore in the October-December period, over Rs 816.8 crore in the year-ago period, the filing said. (ET).
Animal healthcare firm Hester Biosciences on Friday posted a four per cent decline in its consolidated profit at Rs 11.9 crore for the quarter ended December 31, 2019. The company had posted a consolidated profit of Rs 12.4 crore in the year-ago period. The consolidated revenue of the company, however, increased to Rs 50.9 crore in the October-December period, over Rs 45.9 crore in the year-ago period, the filing said. (ET).
Economy and Sector News
Pure-EV, a start-up incubated by Indian Institute of Technology, Hyderabad, launched its high-speed electric scooter, EPluto 7G, here on Sunday. The electric scooter, which has raised funding at a valuation of $35 million, has a range of 116 km per full charge (in ICAT range test) and comes with a patented battery technology. (BL).
The country’s 12 major ports recorded a marginal 1.14 per cent growth in cargo volumes at 585.72 million tonnes (MT) during the April-January period of the current fiscal, according to the Indian Ports Association (IPA). The ports had handled 579.10 MT of cargo during the corresponding period of the last fiscal. In more news, India’s efforts to take its seafood exports to the next level got a major push with the Marine Products Export Development Authority inaugurating its first state-of-the-art microbiology laboratory. (ET).
As many as 400 infrastructure projects, each worth Rs.150 crore or more, have been hit by total cost overruns of over Rs.4 lakh crore owing to delays and other reasons, according to a report. The Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs.150 crore and above. Of such 1,698 projects, 400 projects reported cost overruns and 578 projects time escalation. (BL).
Foreign borrowings of Indian companies fell over 45 per cent to USD 2.09 billion in December 2019 as compared to the year-ago period, according to the Reserve Bank data. Indian firms had raised USD 3.81 billion in December 2018, which included USD 37 million through the issuance of masala bonds. Of the total money borrowed by domestic companies during December 2019, USD 1.2 billion was through the automatic route of external commercial borrowing (ECB) and USD 840 million via approval route of ECB. The remaining USD 55.98 million was raised through the rupee-denominated bonds or popularly known as masala bonds. (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 lower on Friday despite a stronger-than-expected reading on the US jobs market for January as companies around the world warned that the Wuhan coronavirus would impact their top and bottom lines. The Dow Jones Index closed at 29,103, down 277.26 points by 0.94%. The Standard & Poors 500 index closed at 3,328, down 18.07 points by 0.54%. The Nasdaq Composite Index closed at 9,521, down 51.64 points by 0.54%.

FTSE 100

UK markets broke a four day winning streak on Friday as investors continued to consider the impact of the coronavirus and opted to play it safe heading into the weekend. The FTSE 100 index closed at 7,467, down 38.09 points by 0.51%.

 
 
Global Indices
07/02/2019 Clsg Chg%
Dow Jones 29,103 -0.94
NASDAQ 9,521 -0.54
FTSE 100 7,467 -0.51
Bovespa 113,770 -1.23
10/02/2020 Latest
(6:17AM IST)
Chg%
Nikkei 23,670 -0.66
Hang Seng 27,404 -0.33

Nikkei

Asian share markets started trading early in the morning on Monday on a negative note as the investors will be closely watching the US markets. Nikkei is currently trading at 23,670, down 157.87 points by 0.66%.

Precious Metals

Gold futures on Friday shook off losses seen shortly after the release of better-than-expected U.S. employment data, to settle higher as renewed worries about the spread of the coronavirus and it’s impact on the global economy worked to pull U.S. benchmark stock indexes down from record levels.

Base Metals

The London Metal Exchange price of nickel fell by more than 3% on Friday February 7 after reaching a temporary high of $13,210 per tonne.

Crude Oil

Oil futures finished lower Friday to suffer a fifth weekly loss in a row, as strong growth in U.S. employment failed to offset concerns over the global economy fed by the spread of the coronavirus.

 
 
 

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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.