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India Stocks Review: Profits booked after Nifty 50 tops 12000-mark

Monday, Oct 12, 2020

 

By Apoorva Choubey 

 

MUMBAI – Investors booked profits across the equity market after the Nifty 50 topped the psychologically crucial 12000-point mark, with technical glitches in share trading due to a power outage in Mumbai dragging overall volumes and turnover lower. 

 

Finance Minister Nirmala Sitharaman's latest steps to boost demand in the economy disappointed the market, which had some hopes of stimulating measures ahead of the festival season. 

 

Trading in the stock market was disrupted due to likely issues in National Stock Exchange's trading platform and price feed for over 20 minutes. While both the NSE and BSE said their functioning was unaffected by the power outage in Greater Mumbai, traders complained of problems in order matching systems of stock exchanges.

 

Zerodha, the country's largest brokerage firm by users, said its systems were affected by the power outage, while disruption of internet services in some parts of the city also affected volumes, dealers said.  

 

The turnover in the cash market of the NSE fell to 472.5 bln rupees today from 568 bln rupees on Friday. 

 

The glitches in trading and profit booking led volatility gauge India VIX 4% higher to 21.1275. 

 

Several mid- and small-cap stocks underperformed blue-chips, as the profit booking was more intense in the broader market, said dealers. Declines on the NSE were twice the number of advances. 

 

The Nifty 50 ended at 11930.95, up 16.75 points or 0.1% while the Sensex closed 0.2% or 84.31 points higher at 40593.80. The indices extended their gaining streak to eight days in a row.  

 

With the benchmarks gaining close to 60% from their lows in March, investors are worried over valuations running up too much too soon. They are concerned that demand recovery may not be tangible, while uncertainty related to the US presidential elections and fear that spread of the pandemic may trigger more restrictions worldwide also remains. 

 

UK Prime Minister Boris Johnson is reportedly expected to announce new social distancing measures today, while Italy is also preparing for new restrictions.

 

"It's clear that people are nervous, so they are booking profits…plus there was the disappointment after today's government announcements, which seemed more like a puzzle than a boost to demand," said the head of dealing at a local brokerage house. 

 

The Centre today announced a slew of measures, including cash vouchers in place of leave travel concessions for government staff and higher capital expenditure, which it claimed would boost demand in the economy by an additional 730 bln rupees this financial year. 

 

"…Increase in consumer expenditure will depend upon how many employees avail the scheme given that the conditions are being imposed," CARE Ratings said in a report. 

 

Information technology stocks remained the best performers while banks saw the maximum profit taking.

 

HDFC Bank snapped its 10-day winning streak, the longest such stretch of gains in over three years, because of profit booking by some investors.

 

Future Group companies fell 5-10% today because of growing uncertainty over the proposed merger of Future Enterprises with Reliance Industries' arm Reliance Retail Ventures. Reports said private equity major Blackstone Group had sought clarity over its 17.5-bln-rupee investment in Future Lifestyle Fashions and its holding company Ryka Commercial Ventures last year, in the backdrop of the RIL deal. 

 

ITC gained 2.6% after CLSA Asia Pacific Markets likely upgraded its rating to 'buy' from 'outperform' as it sees the company's fast-moving consumer goods business transforming into a major value driver. 

 

Aarti Drugs tanked 10% to 886 rupees after the company's bonus shares were reportedly credited into the accounts of investors.

 

Zee Entertainment Enterprises fell as some brokerage houses said Essel Group company Siti Networks' recent loan default had rekindled risks from inter-corporate loans and trade receivables, bringing corporate governance issues back to the fore.  

 

Shares of Vedanta crashed 20% as promoter Vedanta Resources' delisting offer for the stock did not garner sufficient support from shareholders in the reverse book building process, which concluded on Friday. 

 

Mazagon Dock Shipbuilders listed at a premium of 48% to the issue price of 145 rupees, while UTI Asset Management Co made a tepid debut on stock exchanges, listing at a discount of 10% to the issue price of 554 rupees on the NSE.

 

* Among Nifty 50 stocks, 25 rose and 25 fell 

* Among Sensex stocks, 18 rose and 12 fell

* On the NSE, 662 stocks rose, 1,204 fell and 354 were unchanged
* On the BSE, 943 stocks rose, 1,746 fell and 187 were unchanged
* Nifty IT: Up 1.7%; Nifty PSU Bank: Down 1.7%; Nifty Realty: Down 1.1%

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BSE                                         : National Stock Exchange

Sensex: 40593.80, up 84.31 pts (0.2%)       : Nifty 50: 11930.95, up 16.75 pts (0.1%)
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S&P BSE Sensitive Index                       Nifty 50

Lifetime High: 42273.87 (Jan 20)            : Lifetime High: 12430.50 (Jan 20)

Record Close High: 41952.63 (Jan 14)        : Record Close High: 12362.30 (Jan 14)

2020 1st day close: 41306.02 (Jan 1)        : 2020 1st day close: 12182.50 (Jan 1) 

2020 Closing High: 41952.63 (Jan 14)        : 2020 Closing High: 12362.30 (Jan 14)

2020 Closing Low: 25981.24 (Mar 23)         : 2020 Closing Low: 7610.25 (Mar 23)

2020 High (intraday): 42273.87 (Jan 20)     : 2020 High (intraday): 12430.50 (Jan 20)

2020 Low (intraday): 25638.90 (Mar 24)      : 2020 Low (intraday): 7511.10 (Mar 24)

2019 Closing High: 41681.54 (Dec 20)        : 2019 Closing High: 12271.80 (Dec 20)

2019 Closing Low: 35352.60 (Feb 19)         : 2019 Closing Low: 10604.35 (Feb 19)

2019 High (intraday): 41809.96 (Dec 20)     : 2019 High (intraday): 12293.90 (Dec 20)

2019 Low (intraday): 35287.16 (Feb 19)      : 2019 Low (intraday): 10583.65 (Jan 29)

2018 High (intraday): 38938.91(Aug 28))     : 2018 High(intraday): 11760.20 (Aug 28)

2018 Low (intraday): 32483.8 (Mar 23)       : 2018 Low (intraday): 9951.9 (Mar 23)

2017 High (intraday): 34005.37 (Dec 26)     : 2017 High(intraday): 10515.10 (Dec 26)

2017 Low (intraday) 26447.06 (Jan 2)        : 2017 Low (intraday) 8133.80 (Jan 2)

2016 High (intraday) 29077.28 (Sep 8)       : 2016 High (intraday) 8968.70 (Sep 7)

2016 Low (intraday) 22494.61 (Feb 29)       : 2016 Low (intraday) 6825.80 (Feb 29)

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End

 

Edited by Avishek Dutta

 

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