Daily Big Picture : Nifty Falls for Fifth Straight Session; Auto and PSU Bank Stocks Decline

Today’s Action

Nifty, -0.5%; Sensex, -0.4%; Model Portfolio, -1.2%; Nifty Midcap, -1.5%; Smallcap, -1.5%

Daily Market Review

Market Status: Uptrend Under Pressure 

Benchmark indices extended their decline for the fifth consecutive session driven by sell-off across the sectors as weak corporate earnings and sluggish economic outlook negatively impacted investor sentiment. Nifty fell 60 points and closed below 11,300. The IMF projected a slower growth rate of 7% and 7.2% for 2019 and 2020, respectively.

Barring Nifty Media (+1.7%) and FMCG (+0.01%), all the indices closed lower. Nifty Metal (-2.4%) was the biggest loser followed by Nifty Auto (-1.9%), PSU Bank (-1.7%), and Pharma (-1.8%).

Looking forward, we would closely watch the distribution day count. Weaker breadth and breakdown of some leading stocks following poor results is worrisome. We may change the market status to a Downtrend if the Nifty breaches key support and adds two-three distribution days.

Key News

Hindustan Unilever: The stock closed 2.1% higher today. The Company reported Q1 FY20 results yesterday after market. Volume grew 5% y/y, in line with consensus. The volume growth was mainly due to 10% y/y growth in the home-care segment, contributing 35% to total revenue. EBITDA margin expanded 150bps due to 220bps margin expansion in the beauty and personal care segment (~48% of total revenue).

T V S Motor: The stock closed 2.7% lower. The Company through its subsidiary TVS Motor (Singapore) has signed a definitive agreement to invest $7M in New York-based Scienaptic Systems Inc.

Jubilant Foodworks: The Company reported its Q1 results today. Net profit fell 0.9% y/y to Rs 71.5 crore, missing consensus estimates. Revenue grew 10% driven by same store sales growth of 4.1%. The Company opened 26 new Domino’s stores during the quarter, taking the total count to 1,249.

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

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