Sensex, Nifty end lower post RBI policy; banking stocks crack
02 August 2017
3:30 pm Market at Close: Benchmark indices ended the session on a weaker note as the Street closed at the day's low points post RBI policy.
The Sensex was down 98.43 points at 32476.74, while the Nifty was down 33.15 points at 10081.50. The market breadth was negative as 1048 shares advanced against a decline of 1601 shares, while 172 shares were unchanged.
NTPC, Adani Ports and Ambuja Cements gained the most on both indices, while BHEL, Dr Reddy's Laboratories and Indiabulls Housing were the top losers.
3:10 pm Market Check: Benchmark indices trimmed some of its losses and moved rangebound in the post noon session, with the Nifty continuing its trade below 10,100.
The Sensex was down 87.09 points at 32488.08, while the Nifty was down 30.30 points at 10084.35. The market breadth was negative as 1016 shares advanced against a decline of 1576 shares, while 176 shares were unchanged.
2:55 pm RBI commentary: The six member monetary policy committee (MPC), headed by new RBI governor Urjit Patel, was of the view that the moderation in price trends have persisted long enough to warrant lower loan costs, necessary to engineer a quick industrial turnaround and goad people to spend more.
Inflation rates have slowed to record lows and food prices have been falling. Consumer price index (CPI)-commonly referred to as retail inflation that the RBI tracks-moderated sharply to 1.54 percent in June, the lowest since the index was re-based to 2012 in a new data series.
The RBI and the government has set a retail inflation target of 4 percent for next five years with an upper tolerance level of 6 percent and lower limit of 2 percent.
Persistently low inflation levels can indicate poor demand and weak economic activity, and it was widely expected that the central bank will cut interest rates to prod spending and investment.
2:45 pm Market Check: Volatility gripped benchmark indices after the RBI announced a decision to cut repo rate by 25 basis points at the MPC's meet.
The Sensex was down 106.82 points at 32468.35, while the Nifty was down 38.5 points at 10076.5.
About 1035 shares have advanced, 1543 shares declined, and 166 shares are unchanged.
2:32 pm RBI rate cut: The Reserve Bank of India's Monetary Policy Committee (MPC) on Wednesday cut the repo rate by 25 basis points to 6 percent, while the reverse repo rate was cut by 25 basis points to 5.75 percent.
HDFC Chairman Deepak Parekh said that the rate cut decision was on expected lines. ''Entire financial business community expected it. Food prices, barring one or two things are lower…the MPC has taken the right decision,'' he told CNBC-TV18.
Benchmark indices continued to be rangebound, but recovered from a fall seen immediately after the central bank's decision was announced.
The Sensex was down 64.95 points at 32510.22, while the Nifty was down 26.15 points at 10088.50. The market breadth was negative as 1063 shares advanced against a decline of 1493 shares, while 176 shares were unchanged.
1:58 pm Market Check: Rangebound moves on the market continued in the run up to the announcement by the Reserve Bank of India's (RBI) Monetary Policy Committee on the interest rates.
The Sensex was down 27.78 points at 32547.39, while the Nifty was down 19.30 points at 10095.35. The market breadth was negative as 1115 shares advanced against a decline of 1398 shares, while 161 shares were unchanged.
Lupin, NTPC, and Hero MotoCorp continued to gain the most on both indices, while BHEL, Tata Motors and Indiabulls Housing were the top losers.
1:45 pm Rate-sensitives react: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will be announcing the outcome of its meeting on Wednesday.
The MPC is expected to cut the benchmark repo rate by 25 basis points to 6.00 percent, considering inflation has cooled off in recent months. The last time the MPC revised the key policy rate was at its inaugural policy review in October last year, when the repo rate was cut by 25 basis points to 6.25 percent.
Ahead of this event, rate sensitive stocks traded mixed as investors were still unsure about the decision of the central bank.
1:30 pm Management Speak: Bajaj Auto sales for July have come in below expectations. In an interview to CNBC-TV18, S Ravikumar, President, Business Development, Bajaj Auto spoke about the latest happenings in his company and sector.
Sequential improvement in total sales is visible and everything will fall in place by September in terms of market share, he said.
We are cautiously optimistic on two-wheeler exports and talking about August numbers, sales will be better than July numbers, he added.
1:15 pm Market Check: Benchmark indices extended their losses from the morning session, with the Nifty hovering around 10,100-mark.
The Sensex was down 53.25 points at 32521.92, while the Nifty was down 23.50 points at 10091.15. The market breadth was negative as 1098 shares advanced against a decline of 1340 shares, while 165 shares were unchanged.
NTPC, Hero MotoCorp and Lupin gained the most on both indices, while Tata Motors, BHEL and Indiabulls Housing were the top losers.
12:40 pm Results: Dragged by an exceptional loss of Rs 358.2 crore, healthcare major Wockhardt posted a net loss of Rs 409.6 crore against a profit of Rs 16 crore posted during the same quarter last year.
The exceptional loss is due to a commercial litigation between the company and its two arms.
Meanwhile, the consolidated revenue too declined 18.3 percent at Rs 891.1 crore against Rs 1,091 crore year on year. The consolidated EBITDA loss was reported at Rs 60.1 crore against Rs 75.3 crore in the corresponding quarter of last year.
12:15 pm Market Check: Benchmark indices continued to be sluggish as investors could be sitting on the fence ahead of the outcome of Reserve Bank of India's monetary policy committee's (MPC) meeting.
The Sensex was down 25.39 points at 32549.78, while the Nifty was down 14.30 points at 10100.35. The market breadth was negative as 1117 shares advanced against a decline of 1254 shares, while 141 shares were unchanged.
NTPC and Hero MotoCorp continued to gain the most, while Dr Reddy's Laboratories, BHEL, and Indiabulls Housing lost the most. Metal stocks and FMCG stocks were a drag on the indices as well.
European bourses are expected to open higher on Wednesday morning, supported by 17-year peaks in Asia trading overnight after better-than-expected earnings from tech bellwether Apple which boosted sentiment globally.
The FTSE 100 is seen 10 points higher at 7,432; the German DAX is expected to open up by 13 points at 12,272; and the French CAC is seen 3 points higher at 5,131.
11:45 am Results: Edelweiss Financial Services today reported a 40.5 per cent jump in its consolidated net profit at Rs 196.3 crore for the first quarter ended June.
The company's net profit in the corresponding quarter of 2016-17 had stood at Rs 139.68 crore.
"Total income increased to Rs 1,887.87 crore for the quarter ended June 2017 as against Rs 1,465.40 crore in the same period a year ago," the company said in a BSE filing
11:24 am Earnings: Punjab National Bank on Wednesday posted 12 percent gain in its June quarter net profit at Rs 343.4 crore against Rs 306.4 crore in the same period last year. But the cause of concern for the bank is the declining asset quality as net non-performing assets rose to 8.67 percent against 7.81 percent in the previous quarter.
According to a poll of analysts by CNBC-TV18, the lender was expected to post a profit of Rs 358.9 crore.
The net interest income, difference between interest earned and interest expended, was reported at Rs 3,855.1 crore, a rise of 4 percent against Rs 3,699 crore year on year. The Street expected this figure to be at Rs 3,809.4 crore.
On the asset quality front, the net NPAs surged to Rs 34,573 crore against Rs 32,702 crore in the previous quarter. Meanwhile, the gross NPAs stood at Rs 57,721 crore against Rs 55,370 crore quarter on quarter.
11:05 am Market Check: Benchmark indices turned sluggish ahead of the crucial outcome of the monetary policy committee's meeting later in the day, with the Nifty below 10,100-mark.
The Sensex was down 34.88 points at 32540.29, while the Nifty was down 20.05 points at 10094.60. The market breadth, however, was negative as 1040 shares advanced against a decline of 1144 shares, while 147 shares were unchanged.
Hero MotoCorp and NTPC gained the most on both indices, while BHEL, Bajaj Auto and Indiabulls Housing were the top losers.
10:49 am Market Outlook: HDFC Securities is placing its bet on consumption sector going forward on the basis of strong rural story in the next two years. ''Good monsoon, government spending in the upcountry, among others, will help it…rural story is going to be fabulous in the next two years,'' Dipen Sheth, Head- Institutional Research, HDFC Securities told CNBC-TV18 in an interview.
Speaking on other sectors and stocks, Sheth said that he has a constructive view on HCL Technologies. In case of Tech Mahindra, the view will turn constructive on it going forward. Further, he added that there was a strong value play in the IT sector.
The aviation sector, on the other hand, is a good bet according to Sheth. He highlighted on how rail fares, coupled with dynamic pricing were coming almost at par with air fares one month forward. In this sector, he likes InterGlobe Aviation, the operator of IndiGo, as it has a capital light business model and fabulous management. He further highlighted the operational leadership has in this space.
10:22 am Rural demand? Tractor sales are set to touch a new peak of over 6.5 lakh units this fiscal year given the prospects of a normal monsoon, declining interest rates and farm loan waivers in some key states, says a report.
Sales had risen 18 per cent last fiscal year on good rains and despite note ban, after declining more than 10 percent in 2015 and 2016 when the monsoons played truant, Crisil said in a report on Wednesday.
10:12 am Market Check: Equity benchmark indices erased almost all of its gains, with the Nifty hovering around 10,100 mark.
The Sensex was up 15.24 points at 32590.41, while the Nifty was down 7.20 points at 10107.45. The market breadth was narrow as 1066 shares advanced against a decline of 849 shares, while 100 shares were unchanged.
Hero MotoCorp and NTPC continued to top the charts, while Larsen & Toubro, Dr Reddy's Laboratories and Indiabulls Housing lost the most.
9:50 am Buzzing Stock: JSW Steel declined over 2 percent intraday on Wednesday as investors turned cautious of the stock post the company's Q1 performance.
The company's profit in the first quarter fell by 43 percent to Rs 624 crore compared with Rs 1,096 crore in same quarter last year.
However, revenue during the quarter increased sharply by 24 percent to Rs 15,977 crore, with crude steel production up 1 percent at 3.91 million tonnes and saleable steel up 5 percent at 3.51 million tonnes.
The current quarter was marked by industry wide destocking as customers in general adopted a cautious approach towards carrying inventories in run up to GST rollout, which impacted domestic sales volume.
9:37 am Market Check: Benchmark indices trimmed most of its gains from the opening tick, with the Sensex trading almost one-tenth of a percent higher, while the Nifty turned red.
The Sensex was up 30.72 points at 32605.89, while the Nifty was down 2.15 points at 10112.50. The market breadth began narrowing as 958 shares advanced against a decline of 549 shares, while 83 shares were unchanged.
NTPC and Hero MotoCorp were the top gainers, while ONGC, Kotak Mahindra Bank and ACC lost the most.
9:30 am Buzzing Stock: Shares of Hindustan Copper declined 7.6 percent in early trade on Wednesday as government plans to sell its stake in the company.
The government will sell 3,70,08,720 equity shares (4 percent) of the company through a two days offer-for-sale (OFS) which is beginning today, with an option to sell similar number of shares incase it gets oversubscribe.
The floor price for the said OFS is set at Rs 64.75.
The government currently holds 82.88 percent (76,68,19,811) stake in the company and the stake sale with green shoe option would help the government meet the minimum public shareholding norm of market regulator SEBI.
9:15 am Market Opens: Equity benchmarks began the session on a positive note on Wednesday, with the Nifty opening at a record high. Midcaps too opened on a strong note.
The 30-share Sensex was up 84.40 points at 32659.57, while the Nifty was up 11.25 points at 10125.90. The market breadth was positive as 522 shares advanced against ad decline of 225 shares, while 47 shares were unchanged.
Hero MotoCorp and Lupin were the top gainers on both indices, while ONGC, Kotak Mahindra Bank, Ambuja Cements and ACC lost the most.
The Indian rupee on Wednesday opened at 64.12 to the dollar, up 0.1 percent from its previous close.
Dollar recovered mildly after hitting a 15-month low on a mix of political uncertainty and market expectations of further rate hikes from the Fed. The dollar index, which measures the dollar against a basket of rival currencies is subdued.
Globally, Asian stocks paused near decade-highs on Wednesday as investors waited to see if strong earnings results from tech bellwether Apple would ripple out to component makers in the region.
Shares in the world's most valuable company surged 6 percent after hours to a record of more than USD 159, taking its market capitalisation above USD 829 billion. That should also help carry the Dow through the 22,000 mark when trading resumes.
The Dow Jones Industrial Average racked up a fifth straight record high on Tuesday and neared the 22,000 mark, powered by Goldman Sachs, JPMorgan Chase and other banks.
Apple rose 0.89 percent as Wall Street awaited the largest publicly listed company's quarterly report after the bell, with the iPhone maker expected by analysts to post a 6-percent rise in revenue.
The S&P 500 information technology index is up 22 percent year to date, leading other sectors.