Sensex loses 95 points, Nifty ends below 10,700; Midcap index sheds 267 points

Markets traded volatile in a narrow range and ended lower, tracking mixed cues. It opened firm, thanks to upbeat GDP data however profit taking gradually pushed the index lower. Besides, continuous decline in broader market was the major dampener which later joined by the select index majors too.

We're seeing only handful of stocks holding the Nifty while others are struggling in a range or inching lower. Stock selection becomes very difficult in such scenario. We advise keeping proactive approach and prefer only fundamentally sound counters for trading. We expect further consolidation in Nifty within 10550-10850 zone in near term. 

Market Update: Benchmark indices ended lower, with the Sensex falling 95.12 points to 35,227.26 due to sell-off in banking & financials, FMCG and technology stocks.

The Nifty slipped 40 points to 10,696.20. About three shares declined for every share rising on the BSE.

The Nifty Midcap index fell 267 points.

Atlanta, Manpasand Beverages, GMR Infrastructure, Shankara Build, PC Jeweller, Reliance Nippon, Kwality, IRB Infrastructure, V-Guard, Graphite India, Tinplate, HEG, Venky's, Edelweiss Financial, Allahabad Bank, Andhra Bank, CG Power and Punj Lloyd fell up to 15 percent.

Firstsource, KPIT Technologies, Torrent Pharma, Engineers India, Ashok Leyland and TVS Motor Company gained up to 4 percent.

Gold Update: Gold prices fell Rs 100 to reach Rs 31,900 per 10 grams at the bullion market today owing to slackened demand from local jewellers amid weak global cues.

Silver followed suit and cracked below the Rs 41,000-mark by plunging Rs 450 to Rs 40,600 per kg due to reduced offtake by industrial units and coin makers.

Traders said muted demand from local jewellers as well as retailers at the domestic spot market and a weak trend overseas mainly kept gold prices down for the second day.

Auto Sales: VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, reported 30.7 percent increase in sales in May this year to 5,977 units.

It had sold 4,573 units in May 2017, VECV said in a statement.

Eicher branded trucks and buses posted total sales of 5,874 units last month as against 4,539 units in May 2017, up 29.4 per cent, it said.

VECV further said Volvo trucks clocked 103 units in May 2018 as compared to 34 units in the year-ago period.

PSU Banks' FY18 Losses: Losses by state-run banks have almost entirely wiped out the $13 billion capital infusion by the government, and the situation is unlikely to improve in the current fiscal year, ratings agency Fitch said today.

The big losses will pressure the banks' viability ratings as well, it warned.

"Cumulative losses at the state banks were large enough to wipe out almost all of the government's capital injections of USD 13 billion in FY18, and weak performance is likely to continue in the coming year," it said.

The poor results are due to revision in the non performing assets (NPA) recognition which is accelerating bad loan recognition, it said, adding that the February 12 revision is part of a clean-up that should improve the health of the bank sector over the long term, reports PTI.

Retail inflation for industrial workers: Retail inflation for industrial workers eased to 3.97 percent in April mainly due lower prices of food items.

"The year-on-year inflation based on CPI-IW (Consumer Price Index-Industrial Workers) stood at 3.97 per cent for April, 2018 as compared to 4.36 percent for the previous month (March 2018) and 2.21 per cent during the corresponding month (April 2017) of the previous year," the labour ministry said in a statement.

The CPI-IW is used for working out dearness allowance and dearness relief for central government employees and pensioners respectively.

The food inflation stood at 1.33 percent against 1.68 per cent of the previous month, and 0.67 per cent in April last year.

The All-India CPI-IW for April, 2018 increased by 1 point to 288, reports PTI.

Market Update: The market continued to be mildly under pressure amid consolidation, but European stocks are strong in trade after Italy agreed to form a government.

The 30-share BSE Sensex declined 35.33 points to 35,287.05 and the 50-share NSE Nifty slipped 23.70 points to 10,712.50. 

Banking & financials and FMCG stocks are pulling the market lower but Reliance Industries, ICICI Bank, HDFC and select auto stocks continued to cap losses.

All the sectoral indices are in the red barring Auto Index that rallied nearly a percent due to good sales data from Maruti, Bajaj Auto and Tata Motors.

ONGC fell over 2.5 percent on reports that government may ask the firm to bear fuel subsidy burden and cash-strapped Venezuela has stopped payments of oil dues to ONGC Videsh (OVL), wherein ONGC holds 40 percent stake.

Auto Sales: TVS Motor Company on Friday registered a sales growth of 10 percent year-on-year at 3,09,865 units in May 2018 due to one-time impact of E-Way bill.

The company sold 2,82,007 units in May 2017.

"There was a one-time impact due to transition to E-Way Bill. This will normalise from June onwards," the two-wheeler maker said.

Its total two-wheelers sales increased 8.2 percent year-on-year to 2,98,135 units with domestic sales growth of 2.4 percent and exports growing 48.7 percent.

Scooter segment showed 11.9 percent growth in May while Motorcycles sales grew by 7.4 percent compared to same month last year.

Europe Update: European markets rallied after Italian parties averted the prospect of a snap election, although renewed fears of a global trade conflict appeared to limit gains.

France's CAC index gained 1.1 percent and Germany's DAX rose 0.9 percent while Britain's FTSE went up 0.6 percent.

Among national indexes, Italy's FTSE MIB bounced sharply Friday after President Sergio Mattarella approved a coalition deal for the country's populist parties. The euro zone's third-largest economy, which has endured months of political uncertainty, had sent global financial markets reeling earlier in the week, reports CNBC.  

Venezuela stops payment of oil dues to OVL: Cash-strapped Venezuela has stopped payments of oil dues to ONGC Videsh (OVL), leading to a USD 450 million pile-up, its MD & CEO Narendra K Verma said.

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has 40 percent stake in Venezuela's San Cristobal field, which produces around 18,000 barrels of oil per day.

Venezuelan national oil company Petroleos De Venezuela S.A. (PDVSA), which holds the remaining 60 percent stake, has not paid the dividend to Indian firm since 2009, reports PTI.

Fortis Healthcare in focus: Manipal-TPG, IHH and Munjal-Burman & Radiant-KKR submitted their expression of interest for Fortis, reports CNBC-TV18 quoting sources.

Bidders will be shortlisted by Fortis' board today and the due diligence is allowed for 10 days.

Allahabad High Court on Power NPAs: Allahabad High Court has stayed the Reserve Bank of India’s February 12 circular on resolution on non-performing assets (NPAs) for the assets in the power sector.

According to CNBC TV18 channel reports, the high court has said that no action should be taken by the banks against the power companies except for wilful defaulters.

The circular released by the central bank in February suggested that banks must come out with a resolution plan for all NPAs within 180 days of default on the banks’ books, failing which the assets must be sent for resolution to the insolvency courts under the Insolvency and Bankruptcy Code (IBC).

Taking cognizance of the parliamentary panel report on NPAs in the power sector, the high court has also directed the ministry of finance to hold meeting with the power producers in June.

Auto Sales:  Tata Motors on Friday has registered a strong growth of 58 percent in auto sales for May 2018, driven by solid performance of commercial and passenger vehicles business. 

The Tata Group firm sold 54,295 units during the month against 34,461 units sold in same month last year. 

Commercial vehicles sales during the month increased a whopping 56 percent YoY to 36,806 units due to investment in improved industrial activities, infrastructure development and robust demand in the private consumption-led sectors, the company said. 

Market Update: The market is mildly under pressure in afternoon trade, dragged by banking & financials, technology and FMCG stocks.

ICICI Bank, Maruti, HDFC, Reliance Industries, Tata Motors and L&T continued to support the market.

The 30-share BSE Sensex declined 40.84 points to 35,281.54 and the 50-sahre NSE Nifty fell 25.50 points to 10,710.70.

Nifty Bank index slipped over 200 points as all banks under the index were in negative terrain barring ICICI Bank.

The Nifty Midcap index continued to underperform frontliners, falling 1.5 percent while PSU Bank and Metal indices are down over a percent.

The market breadth is largely in favour of bears as about three shares declined for every share rising on the BSE.

Bajaj Auto rallied 5 percent after better-than-expected May sales data. Maruti Suzuki and Tata Motors also traded strong with 2 percent gains post sales data but Eicher Motors drops 4% due to sales numbers miss analyst estimates.

Auto Sales: Atul Auto said total sales increased 25.1 percent to 3,983 units in May 2018 against 3,184 units in same month last year.

Edelweiss on GDP: Real GVA growth for Q4FY18 gathered pace and touched 7.6 percent YoY (higher-than-expected 7.2 percent) versus 6.6 percent in previous quarter. The upswing was strongly supported by low base with the government spending and agriculture doing better than expected although momentum in private sector GVA (GVA ex agri and public administration) was weak. Within private sector, manufacturing was stable and robust at around 9 percent, while services’ components, such as, trade services and real estate were weak despite a low base. On GDP front, private consumption and exports were weak. But encouragingly, GFCF maintained its improving trend, perhaps reflecting the strong pace of government spending.

Going ahead, base effect is extremely supportive (June 2017 saw de-stocking ahead of GST) and economy is also normalising from disruptions. To that extent, we continue to expect 50-60bps acceleration in GVA growth in FY19 over 6.5 percent seen in FY18.

However, the risks are skewed somewhat towards the downside as we think interest rates are rising ahead of recovery, terms-of-trade for India are reversing and global growth indicators are moderating at the margin.

Market Update: Benchmark indices turned negative in the afternoon trade, with the Sensex falling 103.01 points to 35,219.37 due to selling pressure in banking & financials (barring ICICI Bank), technology and FMCG stocks.

The Nifty has broken the 10,700 levels, falling 45.40 points to 10,690.80 while the Nifty Midcap index lost 1.5 percent on weak market breadth.

About three shares declined for every share rising on the BSE.

Order Win: Gayatri Projects said it has been declared as L-1 bidder for development of Purvanchal Expressway value at Rs 1,111.03 crore and construction of access controlled Nagpur Mumbai Super Communication Expressway Maharashtra Samruddhi Mahamarg in Maharashtra value at Rs 1,393.90 crore.

Rim Sales: Steel Strips Wheels said it achieved total wheel rim sales of 13.68 lakh in May 2018 against 11,19 lakh units in May 2017, representing a growth of 22 percent YoY. "The growth in May was all around segments and we expect this to continue going ahead with firm schedule indication 15 percent volume growth."

In terms ot value, the company has achieved gross turnover of Rs 220.88 crore during the month against Rs 107.75 crore in May 2017, there by recording a growth of 105 percent and achieved net turnover growth of 84 percent at Rs 174.11 crore in May 2018.

Market Update: The market continued to be rangebound as investors digested better-than-expected Q4 GDP data, which shows India is the fastest growing economy, and shifted focus to global trade concerns, and the movement in crude oil prices & rupee.

The Nifty Midcap index continued to underperform frontliners, extending losses to 1.5% while all sectoral indices are in the red barring Auto.

Auto index gained more than half a percent following good May sales data from Bajaj Auto, Maruti and Ashok Leyland. Tata Motors and Hero Motocorp gained 2 percent each ahead of sales data.

Fortis Healthcare in focus: The board of directors has appointed Ravi Rajagopal, non-executive independent director as the chairman of the board with immediate effect, the hospital chain said. 

Manufacturing PMI: India's manufacturing sector activity eased in May as new work orders rose at a weaker pace, while rising inflationary pressures might prompt the Reserve Bank to hike interest rates, says a monthly survey.

The Nikkei India Manufacturing Purchasing Managers Index (PMI) fell from 51.6 in April to 51.2 in May.

"The latest PMI survey signalled a further, albeit slower, improvement in the health of the manufacturing sector in May. This was reflective of weaker expansions in output, employment and new business," said Aashna Dodhia, Economist at IHS Markit and author of the report.

This is the tenth consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

GST Collection: Total GST collection for the month of May 2018 stood at Rs 94,016 crore, which was higher compared to average monthly collection of Rs 89,885 crore for 2017-18.

But it was lower compared to goods & services tax collection for April 2018 at Rs 1.03 lakh crore.

Bank Fraud: The Enforcement Directorate has attached Rs 4,701 crore worth of assets of Gujarat-based pharmaceutical company Sterling Biotech Group in connection with a Rs 5,000 crore bank fraud money laundering case, the agency said today.

The agency issued a provisional freezing order under the Prevention of Money Laundering Act (PMLA) and attached immovable properties of around 4,000 acres, plant and machinery, around 200 bank accounts of various linked companies and promoters, shares worth Rs. 6.67 crore and a number of luxury cars of the Vadodara-based group, officials said.  

This is one of the ED's biggest attachment of assets under the stringent PMLA this year, reports PTI.

Auto Sales: Mahindra & Mahindra said auto sales for May 2018 stood at 46,849 vehicles, registering 12 percent growth compared to 42,003 vehicles sold in May 2017.

The passenger vehicles segment (which includes utility vehicle, cars and vans) sold 20,715 vehicles during the month, a growth of 2 percent YoY. Commercial vehicle sales increased 15 percent year-on-year to 18,748 vehicles in May 2018.

Domestic sales rose 8 percent to 43,818 vehicles in May 2018.

Rajan Wadhera, President, Automotive Sector, M&M said, “May has relatively been a subdued month compared to April. On the back of a buoyant economy, MHCV division continues to outperform. Exports have also been strong with a high growth."

With the forecast of an upcoming normal monsoon the company is confident of good growth in the coming months, he added.

Buzzing: Shares of PNC Infratech gained 3 percent intraday Friday as company declared the lowest bidder for 4th package of Nagpur-Mumbai six lane access controlled super communication expressway (Maharashtra Samruddhi Mahamarg) village Donad Bk. to village Januana Kh. section in Washim District on EPC basis for a quoted price of Rs 2099.52 crore.

Tata Chemicals completes sale of Phosphatic fertilisers biz: The company has completed the sale and disposal of its Phosphatic Fertilisers business and the Trading business comprising bulk and non-bulk fertilisers, by way of a slump sale on a going concern basis, to IRC Agrochemicals after the receipt of requisite regulatory approvals and fulfilment of Conditions Precedent as contemplated in the Business Transfer Agreement dated November 6, 2017.

The company has received a consideration of Rs 872.84 crore from IRC today, i.e. June 1, 2018.

The consideration includes Rs 572.76 crore in cash and the balance by way of letters of credit / bank guarantees. Subsidy receivables were not included in the transaction.

Thus, on completion of the transaction, the divestment business of the company pursuant to the BTA stands transferred to IRC effective June 1, 2018. 

Auto sales: Eicher Motors said its Royal Enfield sales grew by 23 percent to 74,697 units in May 2018, compared to 60,696 units sold in same month last year.

Sales data was far below Nomura estimates of 77,000 units.

Its exports increased 7 percent to 2,187 units compared to 2,049 units sold in May 2017.

Drug Patent: Suven Life Sciences is participating and presenting positive Preclinical and Phase-1 clinical data of advanced molecules from their portfolio of new chemical entities (NCEs) at Sleep 2018, a joint meeting of the American Academy Of Sleep Medicine And The Sleep Research Society being held at Baltimore, USA during June 2-6, 2018.

During the conference Suven will present their Phase 2 ready differentiated Clinical stage therapeutic candidate SUVN-G3031 (Histamine-3 receptor antagonist) for the treatment of Narcolepsy and Narcolepsy associated with Cataplexy. Narcolepsy is a commercially attractive space with a large unmet need.

Auto Sales: Maruti Suzuki India, the leader in passenger vehicles, sold 1,72,512 units in May 2018, registering massive 26 percent growth compared to 136,962 units sold in May 2017.

Domestic sales grew by 24.9 percent year-on-year to 1,63,200 units while exports sales jumped 48.1 percent to 9,312 units in May 2018.

Market Update: The market remained rangebound in morning trade, as investors after digesting better-than-expected Q4 GDP data shifted focus to global trade concerns, and the movement in crude oil prices & rupee.

The Nifty Midcap index continued to underperform frontliners, falling half a percent.

Select banks and FMCG stocks are under pressure while technology, metals and pharma stocks supported the market.

Asian markets remained mixed with investors cautious over trade tensions after the US announced tariffs on steel and aluminium imports.

MOIL in focus: The company slashed prices of different grades of manganese ore and other products, effective from June 1, 2018.

The company informed exchanges that in line with the business practice of fixing/revising prices manganese ore, the company has fixed/revised prices of different grades of manganese ore and other products, effective from 01.06.2018 as under.

(1) The prices of ferro grade, SMGR (Mn30% & Mn25%) and Fines have been decreased by about 15 percent on the existing prices prevailing since 01.05.2018. Further, a discount at 5 percent will be offered on the revised prices of “Three” specific grades of materials i.e. BG102, BG1408 & BGF534 and discount at 10 percent will be offered on revised price of BG1466 for dispatches during June’2018.

(2) The prices of chemical grades of ore have been decreased by about 20% on the existing prices prevailing since 01.05.2018.

Market Update: Benchmark indices are mildly higher amid consolidation, as better-than-expected GDP data for March quarter lifted investors sentiment.

The Sensex rose 66.85 points to 35,389.23 and the Nifty gained 18.30 points at 10,754.50 but the market breadth remained in favour of bears.

About 1,066 shares declined against 910 advancing shares on the BSE.

ICICI Bank in focus: After receiving certain media queries, the country's largest private sector lender clarified to exchanges that the board of directors denied having asked Chanda Kochhar to go on leave.

"She is on her annual leave which was planned in advance. Further, the board denies that it has appointed any search committee to find her successor," it said.

Rupee Update: The Indian rupee is trading higher by 15 paise at 67.26 against the US dollar on continued selling of the American currency by banks and exporters amid robust macroeconomic data.

Data released by the CSO yesterday showed gross domestic product (GDP) growth in the January-March quarter of 2017-18 was at a seven-quarter high of 7.7 per cent, helping India retain the tag of world's fastest growing major economy.

Forex dealers said besides sustained selling of the American currency by exporters as well as banks, a higher opening in the domestic equity market supported the rupee.

However, the dollar's strength against other currencies overseas capped the gains.

Yesterday, the local currency had edged up by 2 paise to end at 67.41 against the American currency on stray dollar selling by banks and exporters. (With inputs from PTI)

Jain Irrigation in focus: India Ratings has upgraded its long-term issuer rating with stable outlook. The stock gained a percent.

Buzzing: ONGC share price fell nearly 4 percent after sources said the government may ask state-owned the company to bear fuel subsidy to help cut petrol and diesel prices.

The government does not want to cut excise duty and is looking at alternative means to reduce petrol and diesel prices that had on Tuesday touched an all-time high of Rs 78.43 per litre and Rs 69.31 a litre respectively.

Sources said the alternative in works is to ask ONGC give subsidy to fuel retailers so that they can sell petrol and diesel at below market rates.

Oil producers ONGC and Oil India Ltd had till June 2015 made good as much as 40 per cent of the under-recoveries or subsidy arising out of selling fuel at below market price. The same subsidy sharing in some form is being brought back, they said.

Sources said that meetings to decide on the subsidy sharing mechanism were on and an announcement may come as early as today, reports PTI.

ONGC Chairman and Managing Director Shashi Shanker, before the news of meeting came to light, said that the company has not heard anything from the government on subsidy sharing.

Market Update: The market consolidates as investors digested better-than-expected March quarter GDP data which shows that India is the fastest growing economy.

The Nifty50 is trading in a narrow range around its previous closing levels but the Midcap index underperformed frontliners again, falling third of a percent.

Bajaj Auto gained 2 percent after the company registered 30 percent growth year-on-year in May sales data.

Nifty Bank slipped around half a percent but ICICI Bank stands toll among banking space, rising nearly 4 percent.

Asian markets are mixed with investors cautious over trade tensions after the US announced tariffs on steel and aluminium imports, reports CNBC.

Auto Sales: Bajaj Auto sold 4.07 lakh units in May 2018, registering a 30 percent growth compared to 3.14 lakh units sold in corresponding month last year.

Numbers were ahead of Nomura expectations of 3.97 lakh units.

Domestic sales during the month grew by 29 percent to 2.24 lakh units and exports grew by 31 percent to 1.82 lakh units compared to same month previous year.

Bajaj Auto said motorcycle sales increased 24 percent to 3.42 lakh units while 3-wheeler sales shot up 76 percent to 64,449 units and 3-wheeler exports grew by 69 percent to 32,367 units.

Buzzing: Granules India gained mildly despite the US Food and Drug Administration has issued Establishment Inspection Report (EIR) for the company’s Gagillapur facility in Hyderabad, Telangana.

This facility was inspected by US FDA in March 2018 without any 483 observations during the inspection.

Gagillapur facility manufactures finished dosages (PBS) and pharmaceutical formulation intermediates (PFIS).

Market Opening: Benchmark indices started off last day of the week on a flat note despite better-than-expected fourth quarter GDP data.

The 30-share BSE Sensex fell 25.01 points to 35,297.37 and the 50-share NSE Nifty declined 16.90 points to 10,719.30.

Nifty Bank index fell 150 points and Nifty Midcap index declined 40 points.

ICICI Bank rallied nearly 4 percent after Chanda Kochhar has already proceeded on leave. The bank is calling it a 'planned annual leave'.

Sun Pharma, Bajaj Auto, BPCL, HPCL, Maruti Suzuki, Ashok Leyland, Indiabulls Housing, HUL and Tata Motors are early gainers.

ONGC fell 4 percent. Axis Bank decliend 1.6 percent and ITC lost 0.3 percent.

Escorts rallied 1.7 percent post May Auto sales data.

CG Power, Idea Cellular, Balrampur Chini, Suzlon Energy and PFC gained up to 7 percent.

Reliance Communications and Vakrangee fell up to 5 percent.

Market Outlook: Ajay Bodke CEO & Chief Portfolio Manager(PMS), Prabhudas Lilladher said

The market is more focused on the dynamics unfolding in the global crude market and the outcome of the crucial meeting between OPEC & Russia on 22nd June. If there is an agreement for a largish increase in global production, likelihood of a further slide in crude prices can't be ruled out. This would reduce risk aversion and spur a strong rally in equities of those economies that are heavily dependent on imports of crude like India.

Market has discounted the fallout of the by-election results. BJP needs to rework it's strategy factoring in a high index of Opposition Unity in the forthcoming State as well as National and frame it's narrative accordingly.

Market Pre-Opening Update: Benchmark indices settled mildly higher in pre-opening trade.

The BSE Sensex rose 51.60 points to 35,373.98 and the Nifty gained 2.30 points at 10,738.50.

Auto Sales: Escorts has announced its tractor sales data for the month of May, which grew by 20.9 percent compared to same month last year.

The company sold 8,325 units in May 2018 against 6,886 units sold in May 2017.

Exports also registered a growth of 105 percent at 238 units compared to 116 units sold in year-ago month.

Market Pre-Opening: Benchmark indices are trading higher in pre-opening, following the fourth quarter GDP data.

The 30-share BSE Sensex rose 155.92 points to 35,478.30 and the 50-share NSE Nifty gained 66 points at 10,802.20.

7.17% 10-year government bond yield opened at 7.88 percent, higher by 5 basis points compared to 7.83 percent in previous session.

Market Cues: The Nifty50 is expected to open flat on Friday following muted trend seen in other Asian markets. The index closed 121 points higher at 10,736 on Thursday.

Trends on SGX Nifty indicate a flat opening for the broader index in India, a gain of 4.5 points or 0.04 percent. Nifty futures were trading around 10,720.50- level on the Singaporean Exchange.

US stocks fell on Thursday after the United States moved to impose tariffs on metal imports from Canada, Mexico and the European Union, prompting retaliatory measures from some of its trading partners, said a Reuters report.

Asian equities sagged on Friday as worries about U.S. trade policy hit global financial markets, which were already shaken this week by political turmoil in Italy.

The Indian economy grew 7.7 percent in January-March, the fastest in nearly two years, signaling quick turnaround aided by rapid construction activity, consumer spending and corporate investment.