Daily Big Picture : Global Indices Trade Lower, Nifty Down 0.6%; PSU Banks, Metal Stocks Decline

Today’s Action

Nifty, -0.6%; Sensex, -0.6%; Model Portfolio, -0.2%; Nifty Midcap, -0.8%; Smallcap, -0.7%.

Daily Market Review

Market Status: Confirmed Uptrend

Due to weak sentiment in global markets, Nifty opened in the red and found resistance near yesterday’s closing price. Though the fall was 0.6%, volumes were lower than the previous session, and hence today’s session won’t qualify as a distribution day. Intraday, Nifty undercut 11,857 (its high when it was last in a Confirmed Uptrend) but managed to close above it.

Barring HDFC Bank, most leading PSU and private banks were among the top losers. The market was dragged down by Nifty Media (-1%), Metal (-2%), and Auto (-1.5%). Nifty IT (+0.7%) was the only sector that closed in the green. Nifty Midcap and Smallcap were down 0.8% and 0.7%, respectively, with ~70% of stocks declining in both the indices.

The advance-decline ratio was in favor of decliners. Of the 2,101 stocks traded on the NSE, 660 advanced, 1,082 declined, and 359 remained unchanged.

On Monday, the Indian market was moved to a Confirmed Uptrend as Nifty retook the 11,856 level (its high when it was last in a Confirmed Uptrend). The market status will be changed to an Uptrend Under Pressure if Nifty adds 3-4 distribution days and breaches key support levels.

Key News

Havell’s India: Revenue for Q4 FY19 was up 9% y/y, while the PAT was down 8% y/y. The numbers were below estimates. The earnings deteriorated as EBITDA of Lloyd vertical came down to Rs 18 crore from Rs 72 crore y/y. Management commented that there was a slowdown in demand due to liquidity crunch, extended winters, and general elections. The stock was up 1%.

Mahindra & Mahindra: PAT for Q4 came at Rs 969 crore, down 16% y/y, but beat estimates. Total revenue came at Rs 13,808 crore, up 4.7% y/y. Margin declined 160bps y/y to 13.5%. The stock was up 0.2%.

Leaders Up on Volume: Info Edge (India) (+3.9%), Inox Leisure (+2.9%), and Power Finance (+2.7%).

Leaders Down on Volume: L&T Technology Services (-2.3%), Dr Reddys Laboratories (-1.6%), and Icici Lombard General Ins Co (-1.6%).

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

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