Vinod Nair, Head of Research, Geojit Financial Services:
Auto sector has given a setback to the market due to low demand, fall in realisations and higher competition. India is taking a careful approach since Q3 has not given a positive sign of revival in corporate earnings as expected. Global market is negative on concerns that Novel Coronavirus issue may slowdown the world economy.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities:
The weakness continued in the market for the second consecutive session and the Nifty closed the day lower. The key lower support area of previous opening upside gap of 9th Jan has been filled completely at 12045 and the Nifty failed to show any sustainable upside recovery from that gap support. It closed just above the lower gap area. This is negative indication.
A long bear candle was formed today and this indicates a possibility of some more weakness in the market ahead. The next important support is placed at 11930 levels, which is a swing low of 8th Jan and this area is going to be tested soon.
Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures:
Bulls lose the grip as index slips below the important support zone of 12,100. Nifty is vulnerable for further downside towards the support zone of 11,800 as the important support zone fails to hold ahead of the event. Metals were under pressure in the trade. Near term, long positions should be exited as the index slips below the support zone. Expect volatility to persist ahead of the Budget session. 12,250 zone is likely to act as resistance on recoveries.
Ajit Mishra, VP - Research, Religare Broking:
For the second consecutive session, the Indian benchmark indices remained volatile and ended in the red, owing to rising economic slowdown concerns due to coronavirus, which has impacted both global as well as domestic investors sentiments. The Nifty index swung both ways and finally ended lower by 0.5% at 12,056 levels. Amongst, the broader markets, BSE-Midcap ended in-line with benchmark while Smallcap ended with marginal losses of 0.1%. On the sector front, except for IT, Oil & Gas and Realty, all the other indices ended in the red with Auto, Telecom and Metals being the top losers.
The earnings season is likely to gain momentum, as some of the front liners would be declaring their results in the next few days. So far, Q3 corporate earnings have been mixed as well as below street expectations. In addition, the key monitorable for market participants would be union budget as expectations are high that government would announce some measures to boost economic growth. Apart from this, FOMC meet outcome (scheduled on 28-29th January) and commentary on growth and outlook would be keenly watched. Hence, consolidation in the Indian markets in the near term cannot be ruled out.
Santosh Meena, Senior Analyst, TradingBells:
It was the second day of selling in the Indian equity market along with sell-off in the global markets on the back of fear of "Coronavirus". There is selling in heavyweights as FIIs are selling in the cash market as well as in the F&O market. Reliance, ICICI Bank, Bharti Airtel, and ITC were major contributors to the downside in today's trading session. Weak results by Maruti led to selling pressure in the overall auto sector which was also one of the reasons for today's downfall in the market. The issue of Coronavirus will continue to dominate in terms of global cues while the outcome of the US fed meeting yesterday night will also be an important factor. Sector-specific pre-budget move and Q3 results related movement are likely to continue. In terms of key earnings, Tata Power, Escorts, Bajaj Finance, Bajaj Finserv, Pidilite Industries, Jubilant Foodworks and NIIT technologies will post their Q3 results tomorrow.
Technically, 12025 is an important support level as Nifty has filled the gap at 12025 level which was created on 9th January. If Nifty manages to hold 12025 level then we can expect a smart recovery in the market where 12200/12300 will be immediate resistance levels while if Nifty slips below 12025 mark then the overall texture of the market will turn bearish where 11850/11700 will be immediate support levels.
Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities:
The market witnessed selling pressure for the second day in a row. The Nifty shed over 100 points from the day’s highest level. Today, the Index opened on a positive note, but tepid global market cues and weak advance / decline ratio (1:2) helped bears maintain their stranglehold thereafter. Technically, the short-term trend remains weak, but 12000 should be a key support level. Above this level, we can expect a sharp pullback rally that will lift the index to 12150-12180 levels. However, trading below 12000 support level could trigger one more round of price correction up to 11950-11930. Ahead of Budget, the sectors which would be in focus are Banking, Infrastructure, FMCG, Auto.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index closed on negative note for second consecutive day at 12060 with loss of 59 points forming a bearish candle on daily chart. Index managed to break its rising trend line support and closed below same hinting we may see some more dips if index continued to trade below 12150 zone which is strong resistance on the higher side, support for index is coming near 12000-11950 zone and immediate resistance is coming near 12110-12170 zone.
Market Close:
Benchmark indices ended lower for the second consecutive day on January 28 with Nifty slipped below 12,100 level.
At close, the Sensex was down 188.26 points or 0.46% at 40966.86, while Nifty was down 63.20 points or 0.52% at 12055.80. About 985 shares have advanced, 1511 shares declined, and 165 shares are unchanged.
Vedanta, Bharti Airtel, Tata Steel, Tata Motors and JSW Steel were among major losers on the Nifty, while gainers included BPCL, HDFC, Bajaj Finance, Sun Pharma and Bajaj Finserv.
Among sectors, metal index shed over 2 percent followed by infra, auto, bank, and energy.
Punjab National Bank to raise funds
A meeting of the Board of Directors of the bank is scheduled on 03.02.2020 for seeking in-principle approval for raising funds through issuance of Basel-III compliant Tier-II Bonds amounting up to Rs 1000 crore in one or more tranches.
Orient Electric gains 6% post Q3 nos
The company has posted 62 percent rise in its Q3 net profit at Rs 19 crore versus Rs 11.8 crore and revenue was up 18 percent at Rs 495.7 crore versus Rs 420.4 crore, YoY.
KRBL Q3 result
Consolidated net profit rose 48.3% at Rs 159 crore versus Rs 107.2 crore and revenue was up 42 percent at Rs 1,329 crore versus Rs 936 crore, YoY.
Manappuram Finance Q3 result
Company has reported net profit of Rs 402.2 crore and revenue rose 29.4% at Rs 1,399 crore. Provision for NPA at Rs 49.12 crore versus Rs 29.34 crore.
Central Bank of India Q3 result
The company's Q3 net profit was at Rs 155 crore versus loss of Rs 718 crore, YoY. Gross NPA was at 19.99% versus 19.89% and Net NPA was at 9.26% versus 7.9%, QoQ.
Mastek Q3 result
Consolidated net profit up 5.6 percent at Rs 26 crore versus Rs 24.6 crore, revenue was flat at Rs 243.6 crore, QoQ.
CARE Ratings has assigned the rating of CARE BBB-; stable for long term bank facilities worth Rs 377.80 crore of 3i Infotech.
Shanthi Gears dips 3% on poor Q3 show
The company's Q3 net profit down 38 percent to Rs 6.1 crore against Rs 9.8 crore, YoY.
Undervalued FMCG Stocks:
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Rupee near day's high
The Indian rupee extendedthegains and tradingnear theday high level at 71.34per dollar versus previous close 71.44.
Aptech falls 8% post Jhunjhunwala probed by SEBI
Aptech share price fell 8 percent on January 28 following reports that billionaire investor Rakesh Jhunjhunwala was being probed by the market regulator Securities and Exchange Board of India (SEBI) for insider trading in the education firm.
Sundram Fasteners begins production at Andhra Pradesh unit
The company's new plant situated at SEZ Unit, Sri City, Andhra Pradesh District has commenced commercial production with effect from January 27, 2020.
Maruti Suzuki Q3
: Net profit grew 5.1 percent at Rs 1,565 crore against Rs 1,489.3 crore YoY. Revenue went up 5.3 percent at Rs 20,707 crore against Rs 19,668 crore YoY. EBITDA grew 8.9 percent at Rs 2,102 crore against Rs 1,931 crore YoY. EBITDA margin stood at 10.1 percent against 9.8 percent YoY.
SeQuent Scientific Q3
: Consilidated net profit grew 56 percent at Rs 20.3 crore against Rs 13 crore YoY. Consilidated revenue went up 17 percent at Rs 316.4 crore against Rs 270.5 crore YoY. Consilidated EBITDA was up 40.1 percent at Rs 50 crore against Rs 35.7 crore YoY. Consilidated EBITDA margin stood at 15.8 percent against 13.2 percent YoY.
CIL gets green nod for 17 mining projects - Coal Minister
: State-owned Coal India has received green clearances for 17 mining projects, a move that will enable the world's largest coal miner to achieve one-billion-tonne production target, Coal Minister Pralhad Joshi has said. "These clearances will add 150 million tonnes of coal in @CoalIndiaHQ kitty in next five years and increase its washing capacity by 25 MTPA enabling the company to achieve 1 billion tonnes of coal production by FY23-24," he tweeted.
Most active securities on NSE with respect to volumes
Coal India January coal production up 10.7%
The company's January coal production registered double-digits growth for the first time in FY20. Its January coal production was up 10.7% at 54.17 million tonnes till January 27. The offtake in January was up 6.2% at 48.07 million tonnes till January 27.
Prabhudas Lilladher initiates coverage on IRCTC
Indian Railway Catering & Tourism Corporation (IRCTC) share price rallied 2 percent on January 28 after Prabhudas Lilladher initiated coverage on the stock, with a buy rating and a price target of Rs 1,339, implying 33 percent potential upside.
Dr Reddy's Lab hits more than three-year high
Shares of Dr Reddy's Laboratories hit more than three-year high intraday on January 28 as brokerage houses remained positive on the stock after strong operating performance in Q3. Dr Reddy's Labs posted a loss of Rs 569.7 crore for quarter ended December 2019 against profit of Rs 485.2 crore YoY, impacted by impairment loss of Rs 1,320 crore during the quarter.
Rupee at day's high
The Indian rupee extended its morning gains and trading at day's high level at 71.31 per dollar. It opened higher by 7 paise at 71.37 per dollar versus previous close 71.44.
Pivot Data:
ED arrests DHFL promoter
Dewan Housing Finance Corporation (DHFL) share price locked at 5 percent lower circuit on January 28 after Enforcement Directorate (ED) arrested Kapil Wadhawan, the promoter of company.
Ujjivan Small Finance Bank director resigns
The bank has received a letter dated January 27, 2020 from Sachin Bansal tendering his resignation as an Independent Director of the bank w.e.f January 27, 2020.
Alembic Pharma gets USFDA nod
The share price of Alembic Pharma gained more than 2 percent on January 28 after the company got the US drug regulator’s nod for Azithromycin tablets.
Cipla gets EIR from USFDA
The company has received the Establishment Inspection Report (EIR), indicating closure of the inspection, following the inspection by the United States Food and Drug Administration (USFDA) at the lnvagen (US) manufacturing facility from December 2, 2019 to December 6, 2019.
Sensex is up 2.76 points at 41157.88, and the Nifty shed 6 points at 12113.
Credit Suisse upgrades United Spirits
United Spirits share price surged 7 percent on January 28 as research house Credit Suisse has upgraded the stock after company reported its Q3FY20 numbers.The company's Q3 consolidated net profit was up 15.2 percent at Rs 232 crore versus Rs 201.4 crore in a year ago period.
