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05 February
2019
I had
mentioned in Monday’s closing report that Nifty, Sensex might continue to head
higher. The major indices of the Indian stock markets were range-bound on
Tuesday and closed with minor gains over Monday’s close. On the NSE, there were
548 advances, 1,213 declines and 297 unchanged. The trends of the major indices
in the course of Tuesday’s trading are given in the table below:
Ahead
of a three-day RBI monetary policy review meet, set to start later in the day,
Sensex and Nifty logged mild gains on Tuesday. Capital goods, FMCG and metal
stocks declined while energy, IT (information technology) and banking stocks
surged. At 2.54 p.m., the S&P BSE Sensex traded 78.22 points or 0.21% up
from its previous close of 36,582.74 after touching a high of 36,727.83 and a
low of 36,495.83. The broader Nifty traded at 10,935.35, up 23.10 points or 0.21%.
Stock-wise, IndusInd Bank, Bajaj-Auto, HeroMoto Corp, Mahindra and Mahindra and
Maruti Suzuki gained in the range of 1% to 3%. In contrast, Tata Motors, Tata
Motors (DVR), Tata Steel, Coal India and ONGC declined in the range of 1% to
3%.
Shares
of telecom major Bharti Airtel Ltd slipped over 4% on Tuesday after ratings
agency Moody's downgraded some notes of the company by the subscribers. After
falling up to 4.33% in early trade, the company's stock recovered to trade at
Rs306.20 per share, down 0.13% during the afternoon session on the BSE.
Moody's
downgraded the senior unsecured rating for Airtel and backed senior unsecured
notes issued by subsidiary Bharti Airtel Int'l (the Netherlands) to 'Ba1', or
junk rating, from 'Baa3'. The American rating agency also withdrew the
company's 'Baa3' issuer rating and said the outlook was negative.
"The
downgrade reflects uncertainty as to whether or not the company's
profitability, cash flow situation and debt levels can improve sustainably and
materially, given the competitive dynamics in the Indian telecom market,"
Moody's Vice-President Annalisa DiChiara said in a note. "A significant
recovery in cash flow from the core Indian mobile segment is needed to
strengthen the company's credit quality and support greater financial
flexibility," DiChiara said. Moody's, at the same time, assigned a Ba1
corporate family rating (CFR) to Airtel, saying it reflects the company's solid
market position in the high growth Indian mobile market. "We recognise the
company has raised $1.45 billion from the pre-IPO of its African operations,
with around $1 billion used to repay debt on consolidated basis," the
ratings agency said. "The rating outlook could be stabilised if Bharti
strengthens its credit profile, with stabilisation of its core Indian mobile
and non-mobile services," it added. Moody's estimated that the
profitability of Bharti's Indian mobile segment will remain low over the next
several quarters in the absence of a fundamental change in the pricing of
mobile services, together with proportional shift in the composition of
Bharti's subscriber base to high-end 4G customers. Bharti Airtel last week said
its net income for the October-December quarter declined nearly 72% to Rs86
crore due to continuing pricing pressure. The company has, however, taken steps
to improve revenues and profitability including its minimum recharge plans, the
Moody's report added. Bharti Airtel shares closed at Rs307.00, up 0.15% on the
NSE.
Budget
airlines SpiceJet on Monday said it will launch a daily non-stop flight service
between Hyderabad and Saudi Arabia's Jeddah from March 25. According to the
airline, Jeddah will be its ninth international destination and third
destination in the Middle East. The airline said that it will service the route
using its new 189 seater Boeing 737 MAX aircraft. "The new service will
enable SpiceJet to provide over 2500 seats per week on the sector," the
airline said in a statement. "To mark this important launch, SpiceJet has
announced a special fare of Rs13,499 (all-inclusive) for Hyderabad-Jeddah and
Rs10,799 (all inclusive) for Jeddah-Hyderabad." SpiceJet shares closed at
Rs77.10, down 1.47% on the NSE.
State-owned
lender IDBI Bank's net loss widened during the quarter ended December 31, 2018
due to higher provisioning for non-performing assets (NPAs). According to the
state-run lender, its net loss in the three months ended December 31, 2018
widened to Rs4,185.48 crore from a net loss of Rs1,524.31 crore reported for
the same period of the last financial year. "Net loss stands at Rs4,185
crore for QE Dec 2018 on account of higher provisioning," the bank said in
a statement. The lender's total provisions for NPA during the quarter under
review increased by 39.51% to Rs5,074.80 crore, compared to Rs3,637.49 crore in
Q3FY18. As per the lender's statement, gross NPA and net NPA ratio improved to
29.67% and 14.01%, respectively, as on December 31, 2018 as against 31.78% and
17.30%, respectively, as on September 30, 2018. "Slippages during the
quarter were Rs2,211 crore which were lowest during the last 7 quarters,"
the statement said. IDBI shares closed at Rs46.70, down 7.52% on the NSE.
Exide
Industries on Monday posted a net profit of Rs155.04 crore in the third quarter
of the current fiscal, up marginally as against Rs154.27 crore in the same
period last year. Its net turnover for the quarter under review was at
Rs2,496.84 crore, up by 9.59% from Rs2,278.29 crore in the corresponding
quarter of the previous fiscal. The battery maker's Managing Director and CEO
G. Chatterjee said that volumes in automotive, motorcycles, UPS and solar
batteries in the third quarter have grown quite well. The company is focusing
on cost control and technology upgradation as strategies to improve the
bottom-line. Exide Industries shares closed at Rs220.25, down 1.81% on the NSE.
The
top gainers and top losers of the major indices are given in the table below:
The
closing values of the major Asian indices are given in the table below: The Total Investment & Insurance Solutions
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Major Indices (The Total
Investment & Insurance Solutions)
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