Daily Big Picture : Nifty Extends Losses But Escapes Distribution Day; Bank of Baroda Hikes MCLR by 5bps

Today’s Action

Nifty, -1.0%; Sensex, -0.9%; Model Portfolio, -1.3%; Nifty Midcap, -0.7%; Smallcap, -0.9%; MSI IND47, -0.9%.

Daily Market Review

Market Status: Confirmed Uptrend

Benchmark indices opened in the red, impacted by global trade tensions which also spooked other Asian markets. Later during the day, benchmark indices hovered around the same level and the Nifty and the Sensex ended 1% and 0.9% lower, respectively. Nifty did not register a distribution day as volumes were lower than that of the previous trading session. Nifty Midcap (-0.7%) and Smallcap (-0.9%) also fell in line.

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.

Barring Nifty IT (+0.1%), all the sectoral indices declined and most of them even underperformed the benchmark index Nifty50. Nifty Metal (-2.0%), Auto (-1.4%), and Banks (-1.1%) were the top losers for the day.

The advance-decline ratio was in favor of decliners. Of the 2,116 stocks traded on the NSE, 588 advanced, 1,146 declined, and 382 remained unchanged.

Key News

Marico reported its Q4 FY19 results after market hours. Revenue was up 8.7% whereas EBITDA was up 12.3% y/y. The adjusted PAT met consensus estimates, and the EBITDA margin also expanded from 12% to 12.6% in the current quarter, y/y.

Bank Of Baroda today hiked its MCLR by 5bps, for the tenor upto one year. Overnight MCLR now stands at 8.30% whereas one-year rates have been revised to 8.7%. The revised rates will be effective from tomorrow.

Canara Bank Rating agency ICRA today downgraded credit rating for additional Tier-1 bonds of Canara Bank from AA to AA- with a stable outlook. The stock ended 0.6% lower.

Leaders Up on Volume: Aavas Financiers (+3.0%), Dcb Bank (+1.0%), and L&T Technology Services (+0.4%).

Leaders Down on Volume: Titan Company (-5.4%), Bata India (-4.7%), and Vinati Organics (-3.5%).

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

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