Nifty, -0.2%; Sensex, -0.1%; Nifty Midcap, -1.1%; Nifty Smallcap, -0.8%; Model Portfolio, -0.9%.
Daily Market Review.
Market Status: Confirmed Uptrend
Nifty opened higher, but remained under pressure during the day and closed 0.2% lower. Nifty closed in the red after seven straight days of gains. Volumes were lower compared to last two-three weeks. The selling pressure was higher in the broader market. Nifty Midcap and Smallcap closed 1.1% and 0.8% lower, respectively.
On the sectoral front, only Nifty FMCG (+0.3%) managed to close in the green, mainly because of gains in Dabur after it beat consensus numbers. Nifty Media (-1.4%), Metal (-1%), and Pharma (-1%) were among the top losers. Advance-decline ratio was skewed toward decliners. Of 2,145 stocks traded on the NSE, 691 advanced, 1,092 declined, and the rest remained unchanged.
Looking ahead, we would like to see Nifty breakout from its all-time high of 12,103. Currently, it has three distribution days with two of them expiring next week. Fresh positions should only be taken in stocks that are emerging from sound bases, preferably with an RS line at or near new highs. Avoid taking new positions in stock if its results are due within a week.
Dabur India (+4.6%) Q2 FY20 earnings came above consensus. Domestic volume grew 4.8% y/y. PAT grew 7% y/y to Rs 403 crore. EBITDA was up 8.6% y/y to Rs 489.5 crore. Margin expanded 90bps y/y to 22.1%. According to management, domestic business continued to face headwinds due to sustained slowdown.
Ncc (+0.2%) reported Q2 FY20 results. Revenue (down 44.2% y/y) and EBITDA (down 36% y/y) missed estimates. PAT beat consensus, mainly due to lower tax outgo. The company bagged orders worth Rs 2,200 crore in H1 FY20.
Punjab National Bank (-5%) reported Q2 FY20 results. Slippages increased to Rs 7,460 crore versus Rs 5,421 crore q/q. NII increased 7.3% y/y to Rs 4,263 crore, beating consensus. Also, bank reported PAT of Rs 507 crore compared to Rs 4,532 crore loss y/y.
Berger Paints India (-1%) Q2 FY20 PAT beat consensus, revenue missed marginally. PAT increased 66% y/y to Rs 194.6 crore. Revenue grew 7.3% y/y to Rs 1,598 crore. Margin expanded 90bps y/y to 15.7%.