Ajit Mishra, VP - Research, Religare Broking:
We believe that the Indian markets would continue to track global developments w.r.t Coronavirus and could exhibit volatility in the near term. The announcement of Q3FY20 GDP data on Friday will be a key domestic cue and will be actively watched by the market participants. In these uncertain times following stock specific approach would be more prudent.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic & Global equity market got impacted by weak expiry of monthly F&O and selling in the global market due to the spread of new coronavirus cases in some parts of the world. Till last week the market was of the view that coronavirus is going to have only a minimum impact on global economy as situation in China was being contained. But an increase in the number of new cases is changing the view and there are fears of some slowdown in the economy.
Deepak Jasani, Head Retail Research, HDFC Securities:
Technically, with the Nifty moving down further, traders will need to watch if the Nifty can now hold above the next major supports at 11,579-11,614; else the current downtrend is likely to continue. Any pullback rallies could find resistances at 11,695-11,779.
Market Close
: Benchmark indices ended lower for the fifth consecutive session but recovered from the day's low in the final hour of trade helping Nifty to close above 11,600.
At close, the Sensex was down 143.30 points at 39745.66, while Nifty was down 45.20 points at 11633.30. About 842 shares have advanced, 1549 shares declined, and 157 shares are unchanged.
Wipro, JSW Steel, Zee Entertainment, ONGC and IOC were among major losers on the Nifty, while gainers include Sun Pharma, Britannia, Titan Company, Grasim Industries and Axis Bank.
Except pharma, all other indices ended in the red. Nifty PSU Bank index fell 2.5 percent, followed by the IT, energy, metal, infra and auto. BSE Midcap index fell 0.6 percent, while BSE Smallcap index shed nearly 1 percent.
NLC India approves dividend
The company board on February 27, 2020, declared an interim dividend of Rs 7.06 per equity share.
Dr Reddy’s launches tablets in US
Dr. Reddy's Laboratories announced the first-to-market launch of Naproxen and Esomeprazole Magnesium Delayed-Release Tablets, a therapeutic equivalent generic version of Vimovo (Naproxen and Esomeprazole Magnesium) Delayed-Release Tablets approved by the US Food and Drug Administration (USFDA).
Sadbhav Infra gets Rs 833 crore
The company has received Rs 833 crore towards first tranche in connection with the sale of entire equity share capital held by the company in six operational road projects to the Indlnfravit Trust. Balance funds are expected to be received soon.
Finolex Industries declares dividend
The company's board at its meeting held on February 27 declared interim dividend of Rs 10 per equity share.
Long Buildup and Short Buildup data
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Market Update
Benchmark indices recovered but still trading lower with Nifty hovering around 11,600 level.
The Sensex is down 301.75 points or 0.76% at 39587.21, and the Nifty down 95.80 points or 0.82% at 11582.70. About 635 shares have advanced, 1568 shares declined, and 115 shares are unchanged.
Glenmark enter into licensing agreement with Hikma
Glenmark Pharmaceuticals' Swiss subsidiary, Glenmark Specialty S.A., has entered into an exclusive licensing agreement with Hikma Pharmaceuticals PLC for commercializing its novel nasal spray Ryaltris in the US.
USFDA completes audit of Dr Reddy's Telangana unit
The audit of company's integrated product development organization (IPDO) at Medchal-Malkajgiri, Telangana, by the US FDA, has been completed and no Form 483 was issued at the closure of the audit.
Lasa Supergenerics acquires Harishree Aromatics
Lasa Supergenerics share price locked at 5 percent upper circuit on February 27 after company announced acquisition of Harishree Aromatics And Chemicals Private Limited.
Brokerages turn bullish on Federal bank, see 27-35% upside in a year
Market experts seem to be bullish on Federal Bank as they see a 27-35 percent upside in the stock in next one year. Brokerages cite the likely operational efficiencies and retail version plan 2.0 as the reasons for the positive view. Emkay Global maintained a buy call on the stock, and overweight rating in its Emkay Alpha Portfolio (EAP) with a target price of Rs 112. Motilal Oswal projects earnings CAGR of 25 percent over FY20-22 with RoA/RoE of 1.2 percent/15.5 percent by FY22 and has maintained buy with a target price of Rs 115.
Most active securities on NSE with respect to volumes
Open Interest Data:
Alphageo bags order
The company has received a notification of award (NOA) of contract from Vendanta for 2D and 3D seismic data acquisition services in Assam for estimated contract value of Rs 184 crore (inclusive of taxes).
Govt to sell 10% stake in RITES
Shares of RITES fell 5.7 percent on February 27 as government would sell its 10 percent equity stake through two-day offer for sale.
Rupee trades flat
The Indian rupee continued to trade flat at 71.65 per dollar againstprevious close 71.66.
Axis Bank appoints new CFO
The bank has approved the appointment of Shri Puneet Shorma as the Chief Financial Officer and the Key Managerial Personnel of the bank with effect from March 6, 2020, in place of Jairam Sridharan, who has resigned as the Group Executive & Chief Financial Officer of the Bank, with effect from the close of business hours on March 5, 2020.
L&T bags order
The construction arm of L&T has secured orders from prestigious clients for its varied businesses in India and abroad.
Zuari Agro resume production
NPK-A Plant of the company at Zuarinagar, Goa has resumed production effective February 27, 2020.
Sensex is down 421.79 points or 1.06 percent at 39467.17, and the Nifty shed 128.30 points at 11550.20.
Not just mid, small or large-caps but look at multi-caps in a fragile market: Experts
At a time when the equity market is reeling under pressure and investor sentiment is low, multi-cap funds are worth looking at, say experts. Data shows that midcaps outperformed largecaps significantly during FY15-18, but the trend saw a reversal amid NBFC crisis and corporate defaults. In the near term, more consolidation is expected. Market experts and brokerages are of the view that any correction amid profit-booking should be used as a buying opportunity to accumulate and increase equity allocation.
Vodafone Idea seeks extension to clear AGR dues, GST refund of Rs 8,000 crore: Report
Vodafone Idea has sought permission to clear its pending adjusted gross revenue (AGR) dues over 15 years and requested concessions on the total amount owed, media reports suggest. It wants to clear the payments in a staggered manner over 15 years after a three-year moratorium, the telecom major said in a letter to the Department of Telecommunications (DoT), the finance ministry and the NITI Aayog, The Economic Times reported.
TVS Motor partners with Motomundo SA
TVS Motor Companyannounced their partnership with Motomundo SA, one of the largest, respected business groups in Honduras.
Biocon gets 2 observations
The share price declined 2 percent on February 27 after the pharma company received observations for its Bengaluru facility from the US drug regulator.
Market Update
Market extended the morning losses with Nifty slip below 11,600 level.
The Sensex is down 271.50 points or 0.68% at 39617.46, and the Nifty down 79.60 points or 0.68% at 11598.90. About 502 shares have advanced, 885 shares declined, and 61 shares are unchanged.
Damani brothers raise stake in India Cements
India Cements share price rose over 6 percent on February 27 after billionaire Radhakishan Shivkishan Damani and his brother Gopikishan Damani increased their stake in the company for the second consecutive day.
Market Opens:
It is a negative start for the Indian indices on February 27 with Nifty below 11,650 level.
The Sensex is down 134.41 points or 0.34% at 39754.55, and the Nifty down 39.50 points or 0.34% at 11,639. About 326 shares have advanced, 297 shares declined, and 48 shares are unchanged.
SBI, Dr Reddy's Lab, HUL, Nestle, Hero MotoCorp, Eicher Motors, Titan, and Yes Bank are among major gainers on the Indices, while losers are Cipla, HCL Technologies, Infosys and TCS.
Rupee Opens
The Indian rupee opened flat at71.65 per dollar on Thursday versus previous close 71.66.
Market at pre-open
: Benchmark indices are trading higher in the pre-opening session on February 27.
At 09:02 hrs IST, the Sensex is up 203.37 points or 0.51% at 40092.33, and the Nifty up 30.90 points or 0.26% at 11709.40.
Market is likely to stay volatile due to weak global cues and monthly expiry day, while 11,600 zone is a major level to watch for going ahead, said Motilal Oswal.
Brokerages View - Source - CNBC-TV18:
Nomura on Axis Bank
Maintain buy call with target at Rs 1,050 per share; bank is our top pick
Expect RoE of 16-17% by FY22, find current valuation undemanding
Reiterate positive stance as retail asset business continues to outperform
Corporate asset quality cycle is clearly nearing an end
HSBC on Havells
Weak results in recent quarters drove earnings downgrade, weighed on stock
See things changing for positive from next quarter
Expect over 24% compound annual growth in profit before tax over FY20-22
Maintain buy rating with target at Rs 700 per share
HSBC on autos
Scrappage scheme is the strongest positive potential catalyst for sector
Believe scrappage value of any vehicle won't be significant enough to exchange offer
Scrappage scheme would benefit 4-wheelers the most, followed by 2-wheelers/CVs
Availability of credit key issue for commercial vehicles
Citi on Indian Pharma
Indian pharma sector has high dependence on China for KSM & intermediates
Three months inventory, longer disruption can hurt
Products like antibiotics, highly dependent on China, could be impacted
Morgan Stanley on Cipla
Estimate 1-2 years before co can get Goa unit back in compliance
Company has a high dependence on Goa & Indore sites for future approvals
Maintain equal-weight on the stock with target at Rs 578 per share
Morgan Stanley on Oil & Gas
Correction in city gas stocks due to worries on open mkt access should be seen as an opportunity
Believe volume growth & margin of city gas cos will hold despite new regulations
Gas cost deflation and room to grow in new cities limits competition for incumbents
Overweight on IGL with target at Rs 525 per share
UBS on Nestle India
Revenue growth momentum continues; see upside potential in margin
Maintain buy on the stock; raise target to Rs 19,250 from Rs 17,000 per share
Citi on Mindtree
Downgrade to sell with target at Rs 945 per share
While the business has stabilised, challenges around macro remain
Client concentration remains high
Macquarie on IndusInd Bank
Believe stock is trading at cheap valuations currently
Maintain outperform rating with target at Rs 1,558 per share
Bk expects Q4 to be marginally better than Q3 in terms of CV credit quality
Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities:
The Nifty can see a major bounce back if it arrests at 11,600 level, which is more likely. Buying strategies should be devised during the correction phase. Major support exists at 11,600, but if the Nifty slips below this, then the medium term trend could be gloomy.
Gold Update
Gold prices rose on Thursday as fears of a pandemic heightened after coronavirus infections surged in Italy and Iran, triggering a move away from riskier assets.