Sensex ends 588 points lower at 46,285, down 5% in a week ahead of Budget 2021
Investors lightened their portfolios and decided to sit on cash on Friday as they await Finance Minister Nirmala Sitharaman’s third Union Budget presentation due on Monday, February 1. In a sea-saw trade today, stock specific moves swayed markets even as overall mood remained subdued.
At the index level, the benchmark S&P BSE Sensex swung 1,260 points in the intra-day trade and hit an intra-day high and low of 47,424 and 46,160. The index eventually settled 588 points, or 1.26 per cent, lower at 46,286 levels. Dr Reddy’s Labs (down 5.5 per cent) was the top loser on the index after the pharmaceutical major’s consolidated net profit came in at Rs 19.8 crore for the quarter ended December, sharply lower than analysts’ estimate of Rs 726.5 crore.
That apart, Maruti Suzuki, Bajaj Auto, Infosys, Bharti Airtel, and Bajaj Finserv, down between 5 per cent and 2.5 per cent, were the top drags. On the flipside, IndusInd Bank (up nearly 6 per cent), Sun Pharma, HDFC Bank, and ICICI Bank were the only gainers on the Sensex.
On the NSE, the Nifty50 index closed at 13,635 levels, down 183 points or 1.32 per cent. The index hit an intra-day low of 13,597.
Both the benchmarks have erased around 5 per cent during the week.
The broader market, however, remained relatively stable with the S&P BSE MidCap and S&P BSE SmallCap index down 0.69 per cent and 0.25 per cent, respectively at close.
On the sectoral front, financial and realty stocks held their ground with the Nifty PSU Bank and Realty indices settling 1.7 per cent and 0.7 per cent higher, respectively. On the downside, Nifty Auto index tumbled around 3 per cent, while Nifty Pharma and Metal indices declined around 2 per cent each.
Shares of IIFL Finance were locked in upper circuit of 20 per cent at Rs 147 on the BSE in Friday’s session after the company reported 47 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 268 crore in the December quarter (Q3FY21), driven by loan growth, higher net interest margin and lower cost to income ratio. The company engaged in financial services business had posted a profit of Rs 183 crore in the year-ago quarter.
Shares of Havells India dipped 10 per cent to Rs 1,063 on the National Stock Exchange (NSE) on Friday after more than one per cent equity of the company changed hands through multiple block deals. Till 01:42 pm, a combined 8.64 million equity shares, representing 1.4 per cent of total equity of Havells India, had changed hands on the NSE and BSE. The name of the buyers and sellers were not ascertained immediately. There were pending sell orders for around 91,000 equity shares on both the exchanges, data shows.
Shares of Colgate-Palmolive (India) moved higher by 6 per cent to Rs 1,660 on the BSE on Friday in an otherwise volatile market after the company reported a double-digit year on year (YoY) growth of 10.1 per cent in domestic sales for the quarter ended December 2020 (Q3FY21). The stock was trading close to its all-time high level of Rs 1,676, touched on January 11, 2021.
Shares of Maruti Suzuki India (MSIL) fell 3.3 per cent to Rs 7,335 in intra-day trade on the BSE on Friday, tumbling 7 per cent in the past two trading days after Ebitda (earnings before interest, taxes, depreciation, and amortisation) contracted by 70 basis points (bps) to 9.5 per cent in the December quarter (Q3FY21), due to higher-than-expected raw material, employee and marketing expenses. The stock was trading lower for the sixth session, falling 10 per cent during this period.
Shares of Indian Railway Finance Corporation (IRFC) made a weak debut at the bourses on Friday, by listing at Rs 25, a 4 per cent discount from its issue price of Rs 26 per share on the BSE on Friday. On the National Stock Exchange (NSE), the stock opened at Rs 24.90 per share. At 10:44 am, IRFC was quoting at Rs 25, after hitting a high of Rs 25.50 and a low of Rs 24.30 on the BSE. A combined 214 million equity shares changed hands on the counter on the NSE and BSE.
Shares of Shriram Transport Finance (STFC) soared 15 per cent to Rs 1,274 on the National Stock Exchange (NSE) in Friday’s intra-day trade, amid heavy volumes, as the firm posted an improvement in asset quality for the quarter ended December 2020 (Q3FY21). At 10:29 am, the stock was trading 14 per cent higher at Rs 1,268 on the NSE as compared to a 0.15 per cent decline in the Nifty50 index.
Shares of TVS Motor surged 10% after posting highest-ever revenue, profit in Q3. The company’s net profit more-than-doubled at Rs 266 crore during the quarter, against Rs 121 crore in Q3 of last year. It reported highest-ever revenue of Rs 5,404 crore in Q3FY21 as against Rs 4,126 crore in Q3FY19, registering a growth of 31 per cent.
Here are some picks from the week gone by.
