Morning Notes
07th Feb, 2020
 

Trading Range:

Nifty opened gap up at 12120 on Thursday and made a high and low of 12161 and 12085 respectively before closing positive at 12138.

Review/Outlook:

For the day, support for Nifty exists at 12070 and 11980 levels whereas resistance for Nifty stands at 12170 and 12220 levels.

Review/Outlook:

Bank Nifty opened gap up at 31071, made a high of 31471, low of 30917, and closed positive at 31304. 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 41,306 +0.40
Nifty 12,138 +0.40
BSE 200 5,119 +0.51
BSE Midcap 15,835 +0.81
BSE Smallcap 14,730 +0.52
Dow Jones 29,380 +0.30
NASDAQ 9,572 +0.67
 

DERIVATIVES INDICATORS FOR FEB 07, 2020:

NIFTY 12137.95 (+48.80) (+0.40%)
NIFTY FEB FUTURE 12136.35 (1.60 Points Discount)
NIFTY PCR - OI 1.38 (-0.01)
NIFTY OPEN INTEREST 1.47 Cr. (+0.12%)
INDIA VIX 13.78 (-2.77%)
NIFTY ROLLOVER 7%

NIFTY OPTIONS ACTIVITY (27-FEB SERIES)

CALL 12100 CE +3.51 lac Shares
CALL 12300 CE +1.95 lac Shares
PUT 12100 PE +5.42 lac Shares
PUT 12000 PE +2.60 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,271 +0.12
Bankex 35,819 +0.95
PSU 6,660 +1.53
Healthcare 14,057 +0.80
IT 16,021 -0.80
 
Market Turn Over (`cr)
Index 06/02 05/02
BSE Cash 3,198 3,443
NSE Cash 45,882 44,669
NSE F&O 3,544,836 1,960,374
BSE Delivery % 52.70 48.16
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 63.37 36.63
BSE 200 63.18 36.82
BSE 500 61.28 38.52
Total BSE 51.92 42.21
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 50.95 +0.39
Gold Rs./ 10 Gms 40351.00 +0.38
Silver Rs./ Kg 46220.00 +1.06
Rs.- US $ 71.22 +0.01
Rs.- Euro 78.21 -0.15
FII (Rs cr )
06/02* 05/02*
FIIs +530.45 +922.96
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       65,510.00       5,162.63       64,294.00       4,943.66    1,71,618.00     14,616.16     218.97
Index Options  74,40,125.00  5,13,635.54  73,84,049.00  5,09,087.32    6,10,847.00     52,326.84  4,548.22
Stock Futures    2,69,118.00     17,845.41    2,59,420.00     17,249.84  15,76,238.00  1,03,596.48     595.57
Stock Options       97,461.00       6,857.42       97,291.00       6,862.04       59,370.00       4,013.00       (4.62)
Total  78,72,214.00  5,43,501.00  78,05,054.00  5,38,142.86  24,18,073.00  1,74,552.48  5,358.14
Corporate News
French energy major Total Gas & Power Business Services will invest $510 million to acquire a 50 per cent stake in Adani’s solar business, thereby giving a push to its renewable energy portfolio. As part of the deal, a joint venture company will house 2,148 MW of operating solar projects which are now 100 per cent owned by Adani Green Energy Ltd (AGEL). The balance 50 per cent stake in the JV will be held by AGEL. (BL).
Mumbai-based engineering company Greaves Cotton, which has fully acquired electric vehicle company Ampere Vehicles, is looking to increase the number of exclusive outlets for Ampere to around 500 by the next fiscal year, up from the current 200. It has also started exporting Ampere electric two-wheelers to markets such as Nepal, Sri Lanka and Bangladesh, and is eyeing expansion to African markets. (ET).
Emami Group on Friday said it has sold its cement business, Emami Cement, to Nuvoco Vistas, part of the Nirma Group, for an enterprise value of Rs.5,500 crore. The move is aimed to reduce debt at the group level. (BS).
Global institutional investor Caisse de dépôt et placement du Québec and Piramal Asset Management Private Ltd on Thursday announced a $300 million platform to target private credit financing opportunities in India. CDPQ will contribute 75 per cent of the investment and Piramal Asset Management Private Ltd, which is a wholly-owned subsidiary of Piramal Enterprises Limited (PEL), will commit the remaining 25 per cent. (ET).
Dilip Buildcon Ltd on Thursday said it has bagged a road project worth ₹860.50 crore in Chhattisgarh. The project, having a length of 39.30 km, is to be completed in two years, it said. (BL).
Granules India on Thursday said its wholly owned foreign arm has received US health regulator’s approval for Colchicine tablets, used in the treatment of familial mediterranean fever. Familial mediterranean fever is a genetic disorder that causes recurrent episodes of fever that are typically accompanied by pain in the abdomen, chest, or joints. (BL).
Quarterly Earnings
Srikalahasthi Pipes Limited has posted a profit of Rs.67.66 crore for the quarter ended December 31, 2019 as against Rs 31.15 crore in the same quarter of the previous year. The company logged a total income of Rs 460.70 crore during the third quarter as against Rs 406.70 crore for the corresponding quarter last year. (BL).
Murugappa Group company EID Parry (India) standalone net loss for the quarter ended December 31, 2019 narrowed to Rs.20 crore. The company posted a net loss of Rs.31 crore for the same quarter last year and a net profit of Rs.6 crore for the September 2019 quarter. Standalone revenue from operations on a year-on-year basis declined to Rs.437 crore (Rs.479 crore) for the December 2019 quarter. (ET).
United Breweries Ltd (UBL) on Wednesday reported net profit decline of 2.56% at Rs 106.37 crore for the quarter ended December, while net sales was impacted by economic slowdown and new excise policy in Andhra Pradesh. The maker of Kingfisher reported a 2.05% increase in net sales in the third quarter at Rs 3255.97 crore. (BL).
GlaxoSmithkline Consumer Healthcare Ltd on Thursday reported a 25.13 per cent jump in standalone net profit to Rs 276.63 crore for the quarter ending December 2019, driven by cost efficiencies. The company had reported a net profit of Rs 221.06 crore in the same quarter a year ago. The total income of the company rose to Rs 1,274.90 crore as against Rs 1,241.07 crore, GlaxoSmithkline Consumer Healthcare said in a filing to BSE. (ET).
Hero MotoCorp on Thursday reported 14.8 per cent year-on-year (YoY) rise in standalone net profit at Rs 880.41 crore for the quarter ended December 31. The two-wheeler major had posted a profit of Rs 769.10 crore in the same period last year. Total income, however, declined by 10.84 per cent to Rs 7178.94 crore. The company sold 15,40,876 vehicles during the quarter against 17,98,905 in the corresponding quarter last year. (BL).
Leading footwear brand Bata India on Thursday reported a 14.75 per cent rise in its consolidated net profit to Rs 118.26 crore for the quarter ended December 2019 compared to Rs 103.05 crore in the year-ago period. Consolidated revenue from operations of the company stood at Rs 830.82 crore for the quarter under consideration against Rs 779.79 crore for the same period year ago, Bata India said in a filing to BSE. (BL).
Pharma major Sun Pharmaceuticals on Thursday reported a 26.43 per cent drop in year-on-year (YoY) net profit at Rs 913.52 crore compared with Rs 1,241.85 crore in the same quarter last year. Revenue for the quarter rose 4.98 per cent to Rs 8,038.65 crore from Rs 7,656.71 crore in the same quarter last year. (BS).
Aurobindo Pharma on Thursday said its net profit for the quarter ended December 31, 2019 was marginally down by one per cent to Rs 705.3 crore against Rs 712.2 crore during the corresponding period last fiscal. According to a filing with the bourses, revenues from operations during the quarter under review was up by nearly 12 per cent to Rs 5,895 crore. It was Rs 5,269.7 crore in Q3 FY19. (ET).
State-owned United Bank of India has reported Rs 114 crore net profit for the December quarter, compared with Rs 1139 crore net loss in the year ago period. It operating profit grew 67% at Rs 637 crore as against Rs 383 crore for the same period. Its gross non performing assets ratio was at 15.48% at the end of the third quarter to December, compared with 15.51% at the end of September while it was 21.27% a year ago. UBI, which is set to be merged with Punjab National Bank and Oriental Bank of Commerce, has reported net interest margin at 2.98% for the third quarter, an improvement of 98 basis points over the year ago period. Net interest income increased to Rs 819 crore against Rs 380 crore in the same period . (ET).
State-run Uco Bank has reported net loss of Rs 960 crore for the December quarter, marginally less than its net loss in the year ago period but higher than that of in the preceding quarter. The bank's operating profit, which is calculated before provisions and contingencies, however trebled at Rs 1211 crore against Rs 381 crore in the year agop period. It had reported net loss of Rs 892 crore for the September 2019 quarter and Rs 999 crore for the December 2018 one, according to the bank's regulatory filing to stock exchanges. Asset quality, Uco's nemesis for decades, has improved from the past year with gross NPA ratio at 19.45 per cent at the end of December compared with 27.39 per cent a year back. Net NPA ratio, which has fallen to 6.34 per cent from 12.48 per cent for the same period, has raised hopes of it coming down below the critical 6 per cent level which would help it to get out of the Prompt Corrective Action net. (BL).
Adani Power’s comprehensive net loss narrowed to Rs 703 crore for the third quarter of 2019-20, as against a loss of Rs 1,180 crore reported a year ago, driven and improvement in fuel cost recovery including compensatory tariffs. The Gautam Adani-led company reported consolidated total income of Rs 6,685 crore in Q3FY20, as compared to Rs 6,667 crore in Q3FY19, the company said Thursday. (BL).
Eicher Motors reported a 6.42 per cent year-on-year drop in consolidated profit for the quarter ended December 31 on Thursday, while its sales inched up a mere 1 per cent. Royal Enfield-maker said its profit came in at Rs 498.70 crore compared with Rs 532.95 crore in the same quarter last year. Sales rose 0.95 per cent to Rs 2,350.45 against Rs 2,328.25 crore. (BS).
APM Terminals Pipavav (Gujarat Pipavav Port Ltd) on Thursday reported over two-fold rise in consolidated net profit at Rs 134 crore for the quarter ended December. The company had posted a net profit of Rs 60.9 crore in the year-ago period, it said in a filing to the BSE. Its income increased to Rs 207.9 crore in October-December quarter from Rs 185 crore in the year-ago period. (ET).
Pharma major Lupin on Thursday said its consolidated loss widened to Rs 835 crore in December quarter from Rs 151.75 crore in the same quarter last year. Sales for the quarter dropped 2.75 per cent to Rs 3,716.09 crore from Rs 3,821.19 crore in the same quarter last year. (BL).
Power trading company PTC India on Thursday said its consolidated net profit during December quarter 2019 dipped 30 per cent to Rs 63.49 crore. The company had logged a profit of Rs 90.20 crore in the year-ago period, a statement said. Net Profit decreased by 30 per cent to Rs 63.49 crore (in third quarter) from Rs 90.20 crore (year ago) on account of subsidiaries. Total income rose to Rs 3,834.42 crore from Rs 3,309.58 crore in October-December 2018. (BL).
Realty major DLF Ltd on Wednesday reported a 24 per cent increase in consolidated net profit at Rs 414.01 crore for the quarter ended December despite fall in income. Its net profit stood at Rs 335.15 crore in the year-ago period. Total income fell 36 per cent to Rs 1,533.34 crore in the third quarter of 2019-20 from Rs 2,405.89 crore in the corresponding period previous year. (BL).
IT major Cognizant on Thursday reported over 39 per cent decline in net profit at $395 million for December 2019 quarter on account of factors like restructuring charges, and said it expects its topline to grow by 2-4 per cent in 2020. The company also appointed Vinita Bali, former managing director and chief executive officer of Britannia Industries, as a new independent director, effective February 24, 2020. The US-based company, which has a significant chunk of its workforce in India, had posted a net profit of $648 million in October-December 2018 quarter. Its revenue grew 3.8 per cent to $4.3 billion during the quarter under review from $4.1 billion in the year-ago period. In constant currency terms, this translated to 4.2 per cent growth. (ET).
Economy and Sector News
ArcelorMittal, the world’s largest steel company, reported a net loss of $1.9 billion for the fourth quarter ended December 2019, against a net profit of $1.2 billion in the same period last year, on the back of a challenging business environment across countries where it has production facilities.. (BL).
The performance of India Inc continued to weaken under multiple headwinds during Q3 FY2020. Revenue growth slowed down to the lowest in more than sixteen quarters, owing to continued weakness in consumer sentiments, benign commodity prices and general slowdown in the economy. ICRA’s analysis of Q3 FY2020 financial results of listed companies in the Indian corporate sector (excluding financial sector entities) showed aggregate revenues contracting by 0.1 per cent on a year-on-year (Y-o-Y) basis. The major impact on revenues came from commodity-linked sectors, revenues from which contracted by 4 per cent on a Y-o-Y basis. (ET).
The Reserve Bank of India (RBI) on Thursday projected the economy to expand by 6 per cent during the next financial year, pegging it at the lower end of the GDP growth estimate of the Economic Survey. The survey, tabled in Parliament last month, estimated the GDP growth during FY21 at 6-6.5 per cent. After three-day deliberations, the Monetary Policy Committee (MPC), headed by Reserve Bank of India (RBI) Governor Shaktikanta Das, observed that the economy continues to be weak and the output gap remains negative. Real GDP growth for 2019-20 was projected at 5 per cent in the December 2019 policy. (BL).
Leap India Food and Logistics Private Limited has raised funds of ₹164 crore from the Danish SDG Investment fund and Neev Fund. This is the Series B round of funding, the company said. SDG Investment fund is managed by Investment Fund for Developing Countries (IFU) and Neev Fund is backed by the UK government - Department for International Development (DFID). (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 gained for a fourth straight session on Thursday and Wall Street’s main indexes hit record highs as concerns eased over the economic fallout from the coronavirus outbreak in China. The Dow Jones Index closed at 29,379, up 88.92 points by 0.30%. The Standard & Poors 500 index closed at 3,346, up 11.09 points by 0.33%. The Nasdaq Composite Index closed at 9,572, up 63.47 points by 0.67%.

FTSE 100

UK markets remained off their earlier highs, but were still in the green at the close on Thursday, with sentiment underpinned by China’s plans to cut tariffs on $75bn of US goods. The FTSE 100 index closed at 7,505, up 22.31 points by 0.30%.

 
 
Global Indices
06/02/2019 Clsg Chg%
Dow Jones 29,379 +0.30
NASDAQ 9,572 +0.67
FTSE 100 7,505 +0.30
Bovespa 115,190 -0.72
07/02/2020 Latest
(4:28AM IST) 		Chg%
Nikkei 23,874 +2.38
Hang Seng 27,494 +2.64

Nikkei

Asian share markets started trading early in the morning on Friday on a positive note as the investors will be closely watching the US markets. Nikkei is currently trading at 23,874, up 554.03 points by 2.38%.

Precious Metals

Gold futures tallied a gain on Thursday, for a second session, as some experts foresee a lower-for-longer, interest-rate regime buttressing the yellow metal, even as anxieties around a novel strain of coronavirus in China appeared to ebb.

Base Metals

The three-month nickel price on the London Metal Exchange was lower at the close of trading on Thursday January 6, with price action holding above the nearby $13,000-per-tonne support level against a seven-day low in daily trading volumes, while zinc futures similarly held ground.

Crude Oil

Prices for U.S. benchmark crude futures finished higher Thursday, as traders weighed news that the Organization of the Petroleum Exporting Countries proposed additional production cuts, but encountered resistance from Russia.
 
 
 

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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.

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