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Sensex, Nifty Fall 6% In Feb F&O Series; Lupin, Dr Reddy’s Labs Top Losers

Sensex, Nifty Fall 6% In Feb F&O Series; Lupin, Dr Reddy’s Labs Top Losers
Employees work at computers at a brokerage firm in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
8 years ago
Nifty futures on Singapore Exchange fell .46% indicating weak start for Indian shares.

Shares of the Delhi-based hospital operator fell 6.56 percent to Rs 145.50 after Registrar of Companies Punjab and Chandigarh sent notice to the company seeking information and documents.

EIH Associated Hotels

  • Stock rose as much as 14.5 percent to Rs 595.
  • Trading volume was 27.9 times its 20-day average.

Apollo Micro Systems

  • Stock rose as much as 17.9 percent to Rs 331.90.
  • Trading volume was 5.2 times its 20-day average.

Nucleus Software Exports

  • Stock rose as much as 11.2 percent to Rs 486.95.
  • Trading volume was 4.2 times its 20-day average.

Windsor Machines

  • Stock rose as much as 19.2 percent to Rs 122.25.
  • rading volume was 2.4 times its 20-day average.

Shares of the state-run telecom service provider rose 7.3 percent to Rs 24.15 on report that the government may announce MTNL's strategic alliance with BSNL.

"February has been the worst month in a year and Nifty can go down to 9,700 levels by middle of March," Sanjiv Bhasin of IIFL told BloombergQuint on phone.

However, Bhasin thinks that the correction will be a good opportunity to enter and he likes technology shares such as TCS, Tech Mahindra, HCL Technologies and Mindtree.

He also likes ITC, Nestle, Jubilant FoodWorks, Engineers India and NBCC.

Shares of the state-run oil exploration company fell 2.16 percent to Rs 186 after crude oil production declined in January.

India’s total crude oil production in January 2.98 million tons compared with 3.08 million tonnes a year earlier, according to a statement from Press Information Bureau.

  • All FPIs trading in Gift city have to be registered by Sebi
  • Sebi common application form has to be approved by government
  • India's Sebi says will not allow tax arbitrage
  • Sebi to allow brokers to trade on behalf of HNIs, FPIs
  • Sebi to introduce common application form for registration

  • Indiabulls Real Estate has 1.64 crore shares change hands in a block deal.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

  • PNB is said to have bigger-than-needed provisioning on Bhushan Steel.
  • Bank is said to see writeback from Bhushan Steel sale.
  • Source: People familiar with the matter

Shares of the Chandigarh-based steel wheel rim maker rose as much as 3.69 percent to Rs 1,021 after it commissioned Chennai truck wheel plant from this month, the company said in an exchange filing.

The plant will ad 1.2 million wheels to existing 1.8 million wheel capacity for truck/trailer segment of SSWL.

  • Indian equity benchmarks were struggling while rupee breached 65 against the U.S. dollar and bond yield spiked after the U.S. central bank minutes hinted at a faster pace of interest-rate increases than previously expected.
  • The S&P BSE Sensex fell 0.3 percent or 102 points to 33,742 and the NSE Nifty 50 Index declined 0.35 percent or 36 points to 10,361.
  • Sixteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Oil & Gas Index's 1.6 percent drop. On the other hand, the S&P BSE Information Technology Index was the top sectoral gainer, up 0.5 percent.

Shares of the Chennai-based dairy company rose as much as 1.4 percent to Rs 780.70 after the company's board approved rights issue to existing shareholders for amount aggregating up to Rs 550 crore.

Shares of the Kolkata-based lender rose as much as 3.57 percent to Rs 27.55 as it plans to raise Rs 6,507 crore via preferential issue to the government.

Shares of the Hyderabad-based technology firm rose as much as 3.46 percent to Rs 652 after its board passed a resolution to reduce investment limit of non-resident investor from 100 percent to 49 percent, the company said in an exchange notification.

  • After valuation correction, now profitability correction seen in pharma companies
  • Advertising demand will come back with 5-6 percent GDP growth
  • See value in broadcasters providing content
  • Next growth cycle will come from optimisation of capacities
  • Bullish on media industry for quite sometime
  • May see some value in select automobiles space
  • Timeline of putting up a new plant is significantly long
  • Full capacity utilisation will double profitability for corporate India

  • Crompton Greaves has about 20 lakh shares change hands in a block deal.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

India’s bonds may extend drop for a fifth day after RBI minutes late on Wednesday showed most of the six members of the policy committee turning hawkish at the Feb. 6-7 meeting when it kept rates unchanged.

Yield on the 10-year benchmark rose 4 basis points to 7.71 percent on Wednesday and is up 22 basis points in past four sessions. This sell-off is adding to the risk of hot money outflows and regulators could see this as destabilizing to the rupee and a potent argument no to open the market much to foreign investors. The RBI is expected to review the cap on foreign investment in rupee notes, currently set at around 5 percent, in March or April.

Meanwhile, the rupee is expected to open much weaker after the dollar rallied overseas on a hawkish set of Fed minutes. The implied forwards indicate the rupee will open at 65.01 after closing at 64.7725 on Wednesday.

  • Hatsun Agro board approved raising up to Rs 550 crore via rights issue.
  • Cyient board approved reduction of non-resident investment from existing 100 percent to 49 percent.
  • UCO Bank to raise Rs 6,507 crore via preferential issue to the government.
  • Vardhman Special Steels raised Rs 50 crore via QIP.
  • Mahindra Logistics opened its largest multi-user facility in Chakan, Pune.

Credit Suisse on Britannia

  • Initiated ‘Outperform’ with price target of Rs 5,550.
  • Britannia well positioned to consistently gain market share.
  • Market share to gradually increase to high thirties.
  • Margin expansion to re-start as input costs are coming off.
  • Expect margins to expand from April.
  • Non-biscuit segment holds promise in long run, but dairy is a concern.
  • Positives: strong in fast growing segment, distribution expansion in 'Hindi' belt, launch of differentiated premium products, and gain share in value segment.

Credit Suisse on Escorts

  • Maintained ‘Outperform’ with price target of Rs 1,040.
  • Dealer check suggests healthy demand trend in tractors.
  • Offtake strong even in usually lean January month.
  • Dealers expect momentum to continue for next few months.
  • Dealers acknowledge positive changes in company’s functioning over past few years.
  • Tie up with DLL group also helping volumes.
  • Prefer Escorts on tractor demand, margin expansion and attractive valuations.
  • Expect strong earnings of with compounded growth rate of 25 percent through the financial years till March 2020.

Citi on Dish TV

  • Maintained ‘Buy’; cut price target to Rs 90 from Rs 100.
  • Though current Ebitda far worse than peers, expect better trends in the next fiscal.
  • Merger likely to be concluded in next few days.
  • Combined entity listing should happen in March.
  • Merger is key to stock performance.
  • Stock is attractively priced post the underperformance.
  • Could see decent returns with the merger.

Click here to see Nifty open interest change since last expiry

  • Gateway Distriparks: Promoter Prem Kishan Gupta bought 6 lakh shares, or 0.6 percent equity, at Rs 198 each.
  • Indiabulls Ventures: Valiant Mauritius Partners Offshore Limited bought 29.88 lakh equity, 0.7 percent stake at Rs 255 each.
  • South West Pinnacle: IIFL Wealth Finance sold 94,400 shares at Rs 85.62 each.

Here are some key events scheduled for this week:

  • Fed policy makers still due to speak this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic.
  • Companies announcing earnings this week include Woolworths, Barclays and Royal Bank of Scotland.

Bonds

  • The yield on 10-year Treasuries fell about one basis point to 2.94 percent.
  • The U.S. two-year rate was at 2.26 percent.
  • Australia’s 10-year yield increased more than one basis point to 2.88 percent.

Commodities

  • West Texas Intermediate crude lost 1.3 percent to $60.90 a barrel.
  • Gold was flat at $1,324.73 an ounce.

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