Sensex ends a tad above 34000, down 407 pts, Nifty falls 1%; banks drag

Benchmark indices slumped more than 1% on Friday, in line with Asian peers, as the global rout in equities returned, while lingering concerns over inflation back home weighed on the market.

Asian stocks tumbled to two-month lows after US shares plummeted again in the face of rapidly rising bond yields.

Global cues have weighed on Indian stock markets with major indexes on track for a second straight weekly fall after embarking on a record-hitting spree in January.

The S&P BSE Sensex ended at 34,005, down 407 points while the broader Nifty50 index settled at 10,454, down 121 points.

FDC, SpiceJet, Steel Authority of India (SAIL), Bharat Forge, Ipca Laboratories, Jet Airways and Bajaj Electricals are among 23 stocks from the S&P BSE500 index up over 10% during the current week in an otherwise weak market.

Bombay Dyeing & Manufacturing, HEG, Fortis Healthcare, Himachal Futuristic Communications (HFCL), Firstsource Solutions, Jamna Auto Industries, Greenply Industries and Shankara Building Products, too, were up more than 10%.

India Cements’ Q3 net profit fell 56.9 percent YoY to Rs 15.2 crore and revenue declined 4.3 percent to Rs 1,213 crore. Operating profit slipped 11.3 percent to Rs 167.3 crore and margin contracted to 13.8 percent from 14.9 percent YoY.

State-owned oil refiner Hindustan Petroleum Corp Ltd’s profit rose 22.6 per cent in the third quarter, beating estimates. Profit rose to Rs 19.50 billion ($303.05 million), compared with Rs 15.90 billion a year earlier.

Aurobindo Pharma’s reported profit after tax at Rs 5.95 billion for the December quarter (Q3), up a mere 3% year-on-year, may have disappointed the street as the stock fell 2.4% to Rs 602 on Thursday, but a look at the core performance and future prospects provide comfort. For one, Aurobindo had to re-measure its US deferred tax assets and liabilities based on the new tax law and also recognise a one-time charge of Rs 664 million in Q3. Thus, its net profit came below estimates of Rs 6.63 billion.

The Bharat Forge stock was up nearly 8% on a better-than-expected December quarter performance, a strong outlook for the March quarter and FY19, and investments in an electric vehicle start-up. Top line growth of 47% over the year-ago period was led by 38% growth in volumes, while the rest came from increasing share of value-added products.

GMDC shares gained 4% as profit in Q3 increased sharply by 68.8% to Rs 78.5 crore compared to Rs 46.5 crore in year-ago. Revenue from operations jumped 33.1% to Rs 506.1 crore, from Rs 380.3 crore in same period last year. Operating profit shot up 98.6% to Rs 131.3 crore and margin 850 basis points to 25.9% compared to same quarter last year.

Indiabulls Real Estate moved higher by 8% to Rs 230 on BSE in noon deal after the Mumbai-based real estate said that its board will meet next week to consider the business restructuring plan that it considered in April last year.

Surya Roshni hits a record high of Rs 522, up 12% on BSE in intra-day trade after the company said it has received an order worth of Rs 839 million for the supply of LED street and tube lights.

Vakrangee is locked in upper circuit of 5% at Rs 202, recovering 10% from its early morning low on BSE with no sellers seen on the counter. The stock opened 5% lower at Rs 183, against its Thursday’s close of Rs 192 on BSE.

Shares of sugar companies were trading higher by up to 20% on BSE in an otherwise weak market after the government imposed a limit on the amount of sugar that mills can sell in the market during February and March. The market price of Avadh Sugar & Energy, Dhampur Sugar Mills, Magadh Sugar, Mawana Sugars, Dwarikesh Sugar and Uttam Sugar Mills were trading higher by more than 4% on BSE.

Hotel Leela Venture shares were locked at 20 percent upper circuit after the company turned profitable with Q3 net income at Rs 40.6 crore against a loss of Rs 10.4 crore in year-ago, led by other income. Revenue from operations increased 4 percent to Rs 203.6 crore from Rs 195.7 crore YoY. Operating profit fell 1.8 percent year-on-year to Rs 65.1 crore and margin contracted 190 basis points to 32 percent for the quarter ended December 2017. Other income for the quarter stood at Rs 26.2 crore against a loss of Rs 20.7 crore in year-ago.

Fortis Healthcare gained as much as 24 percent in early trade after Singh brothers resigned from directorships of the company, but stock came off day’s high to trade with 10 percent gains after agencies told CNBC-TV18 that Singh brothers are said to have taken USD 78 million out of firm. Singh brothers are said to be working working to pay back money. Deloitte is said to have refused to certify company’s Q2 results.

Here are some picks from the week gone by.

Company: Aurobindo Pharma CMP: 587.85 Mastermind

Company: Tata Motors CMP: 369.10 Mastermind

Company: Sun TV Network CMP: 972.00 Mastermind

Company: Arvind Ltd. CMP: 398.40 Mastermind

Company: Dwarikesh Sugar CMP: 42.25 Mastermind

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