Daily Big Picture : Auto and PSU Banks Underperform; Yes Bank Declines 27%

Today’s Action

Nifty, -0.1%; Sensex, -0.1%; Model Portfolio, +0.8%; Nifty Midcap, -0.9%; Smallcap, -1.5%; IND47, -0.4%

Daily Market Review

Market Status: Confirmed Uptrend

Benchmark indices opened lower on account of sharp fall in Yes Bank (-29.2%), after the release of its Q4 FY19 results. However, the Nifty and the Sensex recovered in the last hour to end just 0.1% lower each, and escaped a distribution day.

Currently, the distribution day count stands at one. We might downgrade the status to an {Uptrend Under Pressure) if the count increases to 3-4.

Nifty PSU Banks (-3.3%), Realty (-2.3%), and Auto (-1.7%) were the worst performers. Nifty IT (+1.2%) and Metal (+1.4%) maintained strength throughout the trading session.

The advance-decline ratio was in favor of decliners. Of the 2,113 stocks traded on the NSE, 468 advanced, 1,326 declined, and 319 remained unchanged.

Key News

Kotak Mahindra Bank: The Bank reported quarterly results during market hours. NII and net profit growth came in line with consensus estimates, whereas NIM expanded by 15bps y/y to 4.48%. The stock ended 0.5% higher.

Hero Motocorp: The Company announced quarterly results on Friday, which were below market expectations. Specifically, EBITDA margin saw a contraction of 240bps y/y to 13.6% in Q4 FY19. The management also expressed concerns over near-term demand prospects for two-wheelers in the earnings conference call. The stock reacted negatively and ended 3.5% lower.

Yes Bank: Reacting to negative shock of Q4 FY19 results released on Friday, the stock exhibited a sharp fall and ended 29.2% lower. A number of rating agencies and equity research firms have downgraded the bank after Q4 FY19 results.

Leaders Up on Volume: Aavas Financiers (+2.8%), Pvr (+3.0%), and Multi Cmod.Ex.Of India (+2.4%).

Leaders Down on Volume: Bharat Financial Inclusion Ltd (-4.5%), Godrej Properties (-2.9%), and Bajaj Finserv (-2.6%).

What do you think? Please email us any questions or comments.

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