Sensex down over 200 points, Nifty ends below 10,650; banks drag
04 Jun 2018
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RBI Policy Expectations: India Ratings believes the Reserve Bank of India’s Monetary Policy Committee (MPC) will keep the policy rate unchanged in its upcoming review.
Although the MPC minutes from April’s policy review indicate a potential shift in the Reserve Bank of India’s liquidity stance to ‘withdrawal of accommodation’ from current ‘neutral’ stance, the agency believes the MPC will wait for the outturn of monsoon and its distribution, and further movement in crude oil prices before deciding on the rate hike.
In the interim, financial market conditions have already tightened. A mix of global and domestic factors such as risk aversion among global investors, crude oil price volatility, higher borrowing by the state governments and a likely fiscal slippage by the central government has driven the bond yields higher. The 91-day Treasury bill rates increased to 6.4 percent in May 2018 from 6.11 percent in April 2018, while the 10-year G-sec rate rose to 7.88 percent from 7.15 percent during the same period.
Market Closing: Benchmark indices ended sharply lower after the rally in previous week, weighed largely by banking & financials.
The 30-share BSE Sensex shed 215.37 points to 35,011.89 and the 50-share NSE Nifty slipped 67.70 points to 10,628.50 while the Nifty Midcap index shed over 1 percent.
About four shares declined for every share rising on the BSE. Nifty Bank shed 435 points.
Leel Electricals, PC Jeweller, Kwality, Rain Commodities, Delta Corp, HEG, Graphite India, KEC International, TVS Motor, Escorts, Equitas Holdings, down up to 16 percent.
Vakrangee, Atlanta, Man Infra, Lemon Tree, Hexaware and Jubilant Foodworks gained up to 5 percent.
Market slip further: The benchmark indices slipped further in the final hour of trading as Sensex was down 225 points trading below 35,000.
Dr Reddys Labs, Infosys, M&M, Tata Steel and Reliance Industries are the top gainers on the Sensex, while losers are HDFC Bank, Adani Ports, Bharti Airtel, Power Grid Corp and HUL .
DHFL raises nearly Rs 11,000 crore: Housing financier DHFL has raised over Rs 10,944 crore through public issue of bonds which had open for subscription in May.
The public issue of non-convertible debentures (NCDs), which opened on May 22, had an issue size of Rs 3,000 crore with an option to retain oversubscription of up to Rs 9,000 crore aggregating up to Rs 12,000 crore.
ICRA pegs wind energy capacity addition at 3-3.5 GW in FY'19: Wind energy capacity addition is estimated at about 3-3.5 GW in FY2019 and the viability of bid tariffs and inter-state connectivity will be key headwinds for developers, ratings agency ICRA said today.
The project awards so far are expected to improve the capacity addition in the wind power segment to about 3 to 3.5 GW in FY2019 against 1.7 GW in FY2018, ICRA said in a statement.
The Ministry of New and Renewable Energy (MNRE) along with the distribution utilities in Gujarat, Maharashtra and Tamil Nadu have awarded wind-power capacity of 7.6 GW over the past 15 months and another 10 GW each are proposed to be awarded in FY2019 and FY2020, reported PTI.
Market Update: Benchmark indices extended losses in afternoon trade, with the Sensex falling more than 150 points and the Nifty breaking 10,650 levels due to further correction in banks.
Nifty Bank index plunged 400 points as HDFC Bank, ICICI Bank, Kotak Mahindra Bank and SBI are top contributors to the index fall, which are down 1-2 percent.
HUL, Indiabulls Housing, Titan Company, Bajaj Finserv, Bharti Airtel, Asian Paints, Adani Ports and Power Grid slipped up to 3 percent.
Reliance Industries (up 1.17 percent), Infosys (0.89 percent) and ITC (up 0.4 percent) managed to cap some losses.
The BSE Sensex dropped 199.96 points to 35,027.30 and the NSE Nifty dipped 66.20 points to 10,630. Nifty Midcap slipped over a percent as about four shares declined for every share rising on the BSE.
Drug Launch: Lupin announced the launch of its generic Methylergonovine Maleate tablets USP, 0.2 mg, in the US.
Methylergonovine Maleate tablet is the generic equivalent of Novartis Pharmaceuticals Corporation's Methergine. It is indicated for the prevention and control of postpartum hemorrhage.
The drug had annual sales of approximately $71.5 million in the US, as per IQVIA MAT April 2018.
CAD may widen: India Ratings and Research believes a combination of elevated crude oil price and weak rupee, if sustained for more than a quarter, will have an adverse impact on India’s current account position, inflation, monetary policy stance and fiscal balance.
"If crude basket averages USD68-72.86/bbl and rupee averages 66.6-67/USD for FY19, the current account deficit could widen $22 billion-31 billion in FY19," it said.
Wholesale inflation could also increase 70-80bp from the agency’s current forecast of 3.4 percent and retail inflation 30-35bp from its current forecast of 4.3 percent, according to the rating agency.
Market Update: The market is mildly under pressure amid consolidation in afternoon trade, with the Nifty struggling below 10,700 levels.
Banks are pulling the market lower as the Nifty Bank index slips 300 points while Midcap index extends losses to 150 points.
Breaking News: MK Jain has been appointed as RBI Deputy Governor for three years.
He is currently the Managing Director and CEO of IDBI Bank.
Acquisition: Huhtamaki PPL has completed the acquisition of the business of Ajanta Packaging, India in terms of the business transfer agreement and other related documents executed between the company and Ajanta Packaging, India.
Europe Update: European markets opened higher, amid a slew of corporate news, and despite an anti-immigration party winning an election in euro zone country Slovenia over the weekend.
France's CAC, Germany's DAX and Britain's FTSE gained more than half a percent.
Crude Update: Crude oil futures traded flat. The market was weighed down by US output climbing to a record-high and expectations that OPEC members will raise supplies.
Global benchmark Brent was up 0.05 percent at $76.83 a barrel.
US West Texas Intermediate (WTI) crude futures gained 0.09 percent to $65.87 a barrel. Last week, the market lost around 3 percent, adding to a near 5-percent decline from a week before, reports Reuters.
Market Update: The market continued to trade in a narrow range with the Nifty hovering around 10,700 levels despite strong global cues. Investors await monsoon progress and monitor the movement in rupee and crude oil prices.
The BSE Sensex rose 31.08 points to 35,258.34 and the NSE Nifty fell 0.10 points to 10,696.10. About three shares declined for every share rising on the BSE.
Buzzing : Whirlpool of India share price gained after the company said in line with the strategic priority for Whirlpool to expand the cooking & built-in appliance portfolio, the board approved a proposal to enter into a strategic joint venture with Elica and acquire 49 percent equity in Elica PB India Pvt Ltd.
As part of the Joint Venture, Elica PB India will manufacture and distribute cooking and built-in appliances under the Whirlpool brand in India.
Elica PB India is a subsidiary of Elica SpA Italy and has been operating in India since 2010.
"The parties expect the transaction to close in the second half of 2018," the company said.
"The cooking and built-in appliance space is poised for very strong growth in India based on increasing consumer demand. Whirlpool aims to expand its portfolio of innovative products with Elica’s impressive capabilities in consumer insights, design, manufacturing and also broaden its distribution," Sunil D’Souza, Managing Director of Whirlpool India said.
Market Update: The market remained rangebound in late morning deals as investors digested better-than-expected US jobs data and shifted focus to monsoon, and also monitor the movement in rupee and crude oil prices.
The Nifty struggles below 10,700 levels while the Nifty Midcap index continues to underperform frontliners.
The 30-share BSE Sensex fell 14.70 points to 35,212.56 and the 50-share NSE Nifty slipped 12.50 points to 10,683.70. About three shares declined for every share rising on the BSE.
Nomura has maintained buy rating on Tata Motors with a price target of Rs 495 per share.
The company's JLR US retail sales was better than expected at 17 percent in May 2018. Land Rover drives volume of the company, while Jaguar continued to remain weak, said Nomura.
The research firm expect 9 percent growth in overall JLR volumes in 2018-19.
Nomura has maintained buy rating on Tata Motors with a price target of Rs 495 per share.
The company's JLR US retail sales was better than expected at 17 percent in May 2018. Land Rover drives volume of the company, while Jaguar continued to remain weak, said Nomura.
The research firm expect 9 percent growth in overall JLR volumes in 2018-19.
Buzzing: Share price of Dilip Buildcon rose 3.6 percent as company received letter of award from National Highways Authority of India (NHAI) for a project in the state of Karnataka.
The company has received letter of award worth of Rs 1313.90 for a new hybrid annuity project in the state of Karnataka.
The project includes four laning of Bellary to Byrapura section of NH-150A on hybrid annuity mode under Bharatmala Pariyojana in the state of Karnataka on Hybrid Annuity Mode Pkg - I.
Market Update: The market continued to consolidate after a sharp rise in opening, with the Nifty struggling below 10,700 levels.
HDFC Bank, TCS and FMCG stocks are under pressure while Reliance Industries, Infosys and Tata Motors continue to support the market, rising 1 percent each.
Dr Reddy's Labs is the top gainer among Nifty50 stocks, rising 3 percent after getting zero observations for Srikakulam plant from USFDA.
The Sensex fell 11.41 points at 35,215.85 and the Nifty declined 8.40 points to 10,687.80 while the Nifty Midcap index continues to underperform frontliners on weak market breadth.
About two shares declined for every share rising on the BSE..
Fund Raising: Hotel Leela informed exchanges that a meeting of the Board of Directors of the company has been scheduled to be held on June 11 to approve enabling resolutions for issue of upto 125 crore shares to JM Financial Asset Reconstruction Company Limited on preferential basis towards conversion of part of Debt into Equity.
Buzzing: Steel Authority of India’s shares rose over 2 percent as investors cheered a ratings upgrade on the stock.
Global research firm Citi has upgraded the stock from neutral from sell and raised the target price by 66 percent to Rs 83 from Rs 50.
Citi said that it is expecting steel spreads to sustain on better demand, supply limits and falling inventories. Going forward, it also expects strong volumes and a fall in net debt-to-EBITDA to three times by 2019-2020.
The global financial services firm also is raising EBITDA estimates for the current and next fiscal by 26 and 25 percent, respectively on the back of potentially higher steel prices.
Rupee Update: Maintaining its uptrend for the fourth straight day, the rupee strengthened by 21 paise to a fresh one-month high of 66.85 against the dollar in opening today on increased selling of the greenback by exporters and banks, but could not sustain gains for long.
The rupee currently is trading at 67.03 a dollar, up 3 paise from previous close.
Participants are also keeping an eye on RBI's second bi-monthly monetary policy meeting of 2018-19, being held from June 4-6.
Forex dealers said a higher opening of the domestic equity market supported the rupee but the dollar's strength against some currencies overseas after the release of an upbeat US jobs report capped the gains.
On Friday, the rupee had gained 35 paise against the US currency to end at a near one-month high of 67.06 after a flurry of upbeat economic data bolstered confidence in the growth outlook. (With inputs from PTI)
Buzzing: Shares of Cadila Healthcare added 1.7 percent in the early trade on the back of USFDA for Doxycycline Hyclate capsules USP.
Zydus Cadila has received the final approval from the USFDA to market Doxycycline Hyclate Capsules USP, 50 mg and 100 mg.
It is a tetracycline antibiotic used for treatment of a wide variety of bacterial infections, including those that cause acne. This medication is also used for prophylaxis of malaria.
It will be manufactured at the group's manufacturing facility at SEZ, Ahmedabad.
Market Update: The market erased all its opening gains to trade lower despite strong global cues, pulled down by HDFC Bank that fell 2 percent on profit booking.
The Sensex is down around 100 points and the Nifty slips below 10,700 while the Nifty Bank index falls 200 points.
HDFC, TCS and FMCG stocks are under pressure while Reliance Industries, Infosys, ICICI Bank supported the market.
Dr Reddy's Labs is the top gainer among Nifty50 stocks, rising nearly 3% after getting zero observations for Srikakulam plant from USFDA.
Market Update: Benchmark indices erased opening gains to trade mildly higher due to selling pressure in HDFC Bank that pulled Nifty Bank index down by 75 points.
The 30-share BSE Sensex rose 39.50 points to 35,266.76 and the 50-share NSE Nifty gained 8.10 points at 10,704.30 while the Nifty Midcap index continues to underperform frontliners, falling 0.12 percent on weak market breadth.
About 907 shares declined against 719 advancing shares on the BSE.
Buzzing: Dr Reddy's Laboratories share price rallied 3.5 percent in morning on Monday after Srikakulam plant cleared by the US health regulator.
The pharma major informed exchanges that the audit of API Srikakulam Plant (SEZ), Andhra Pradesh by the US Food and Drug Administration has been completed.
"Audit of the plant completed by the US FDA with no observations," the company said.
Market Opening: Benchmark indices started off the week on a strong note, tracking positive lead from global stocks.
Th e 30-share BSE Sensex rallied 236.77 points to 35,464.03 and the 50-share NSE Nifty rose 61.20 points to 10,757.40.
Hero MotoCorp, L&T, Bajaj Finance, Titan Company, HDFC Bank, ICICI Bank, Dr Reddy's Labs, IndusInd Bank, HPCL, Tata Motors, BPCL, GAIL, IOC, HDFC and Coal India gained up to 2.5 percent.
Nifty Midcap index gained 54 points and Nifty Bank rallied 271 points.
Vakrangee, Anant Raj, Whirlpool of India, Can Fin Homes, Sanghi Industries, Satin Creditcare gained up to 5 percent.
VST Tillers fell 1 percent.
Rupee Update: The Indian rupee opened higher by 10 paise at 66.96 per dollar versus 67.06 Friday.
Rupee rose against the US dollar, on Friday, after India’s Q4 GDP number showed growth of 7.7 percent compared to growth of 7.2 percent in the previous quarter. On the other hand, government data showed India’s fiscal deficit in the year ended March 2018 came in at 3.53% of GDP in line with the revised estimates. Overall, the numbers were in line with estimates and rupee was supported on lower levels, said Motilal Oswal .
India’s FX reserves for the week ended May,25 fell by USD 2.23 billion and currently stands at USD 412.82 billion compared to USD 415.05billion in the previous week.
Market Opening: Benchmark indices are strong in pre-opening, following positive lead from global peers post US jobs data.
The 30-share BSE Sensex rose 184.11 points to 35,411.37 and the 50-share NSE Nifty gained 70.80 points at 10,767.
Technical Recommendations: We spoke to 5nance.com and here’s what they have to recommend:
Bodal Chemical Ltd: Buy | Target: Rs 161 | Stop-loss: Rs 132 | Return 12%
KPIT Technologies Ltd: Buy | Target: Rs 303 | Stop-loss: Rs 273 | Return 6%
Rain Industries Ltd: Sell | Target: Rs 213 | Stop-loss: Rs 243 | Return 4%
Stocks in news: Alembic Pharma announced that Ajay Kumar Desai, Senior Vice President - Finance and Company Secretary has resigned from the position of Secretary & Compliance Officer with effect from May 31. Charandeep Singh Saluja has been appointed as Company Secretary & Compliance Officer.
Dr Reddy's Laboratories said the audit of API Srikakulam plant in Andhra Pradesh has been completed by the US Food and Drug Administration with zero observations
Som Distilleries to raise Rs 100 crore by preferential issue of equity shares and to raise Rs 36 crore by preferential issue of warrants to promoters.
State Bank of India has hiked the marginal cost of funds based lending rate (MCLR) by 10 bps across tenors effective June 1
Kotak Mahindra Bank has hiked MCLR by 10-20 bps across tenors effective June 1, one-year MCLR has been hiked by 20 bps to 8.90 percent
Punjab National Bank has raised MCLR by 10 bps effective June 1
ICICI Bank has raised MCLR by 10 bps effective June 1
Karnataka Bank raises deposit interest rates
Mcleod Russel approves buyback of equity shares at Rs 210 per share
Moneycontrol News
The Nifty50 is expected to open higher on Monday following positive trend seen in other Asian markets. The index closed 39 points higher at 10,696 on Friday.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 44 points or 0.41 percent. Nifty futures were trading around 10,723.50- level on the Singaporean Stock Exchange.
Wall Street stocks rose on Friday after the latest monthly jobs report pointed to strength in the US economy and geopolitical tensions eased, said a Reuters report.
Asian shares edged up on Monday as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could drag global economic growth lower, it said. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent while Japan’s Nikkei rose 1.0 percent.
Foreign investors pulled out a massive Rs 29,714 crore from the capital markets in May, making it the biggest outflow in 18 months, primarily due to a surge in global crude prices.
