Nifty ends below 10,800; Sensex down 219 points; PSU banks drag 2%
25 June 2018
Market Closing: Benchmark indices ended at day's low with Nifty slipped below 10,800 and Sensex fell over 200 points as selling pressure seen in major banking, pharma and metal names.
The market breadth favoured declines with 809 shares have advanced, 1721 shares declined, and 143 shares are unchanged.
Tata Motors, HPCL, BPCL, L&T, ICICI Bank, Coal India, and Power Grid are the top losers on the indices.
Expect IT space, all other sectoral indices ended lower with 0.4 percent to 2 percent cut.
NHPC signed power purchase agreement (PPA) in respect of Kishanganga HE Project (3X110MW) with UP Power Corporation (UPPCL) for a period of 35 years from the date of commercial operation (COD) of last unit of the said project.
At 15:27 hrs NHPC was quoting at Rs 24.70, down Rs 0.25, or 1.00 percent. It has touched a 52-week low of Rs 24.50.
Market Update: The market is trading at day's low in the final hour of trading with Sensex fell below 35,500 and Nifty down 60 points at 10,760
About 809 shares have advanced, 1721 shares declined, and 143 shares are unchanged.
Tata Motors, ICICI Bank, Coal India, L&T and Power Grid are the top losers on the Sensex.
Buzzing: Shares of telecom firm Idea Cellular slipped 7.5 percent intraday Monday as its merger with Vodafone India may miss the deadline of June 30.
The mega-merger may not meet the expected June 30 timeline as the telecom department is looking to raise a fresh demand of around Rs 4,700 crore, a source said. The demand will be raised from Vodafone India before its merger with Idea Cellular.
"Vodafone India had merged its all arm into one company and there are dues of around Rs 4,700 crore related to one-time spectrum charges (OTSC) on the company. DoT will ask Vodafone to either clear dues or furnish bank guarantee before merger with Idea," an official source told PTI.
Shares of PNB Housing Finance soared 14 percent intraday on reports that HDFC and Kotak Mahindra Bank were eyeing controlling stake in the firm.
The stock touched an intraday high of Rs 1,224.00 and an intraday low of Rs 1,105.40.
According to a report on The Economic Times, both the lenders were competing for a controlling stake in PNB Housing Finance in a bid to get better access to mortgage market.
Vikas Ecotech to set up India's first 2-EHTG unit in Dahej: The company is setting up a 2-Ethylhexyl thioglycolate (2-EHTG) manufacturing plant at Dahej, Gujarat.
The company is setting up an exclusive captive facility for the production of 2-EHTG at Dahej in the state of Gujarat.
The project will be set up at a cost of INR 350 million and shall be completed over a period of 12 months.
Sandhar Technologies signs JV agreement with Whetron Electronics: Share price of Sandhar Technologies rose 2 percent on signing JV agreement with Whetron Electronics Co.
The company has signed a joint venture agreement with Whetron Electronics Co., Taiwan for manufacturing and selling electronic parts and accessories for the automotive industries in India.
The company will hold 50% of total equity share capital of the proposed JV company and rest will be hold by Whetron Electronics.
Buzzing: Shares of Symphony gained 4 percent as company is going to acquire 95 percent stake in Climate Technologies Pty. Australia.
The company has entered into a share sale agreement to effectively purchase 95 percent equity stake in Climate Technologies Pty through a new incorporated subsidiary company Symphony AU Pty, Australia.
The acquisition will be executed at a valuation range of A$ 40-44 million (Rs 201 crore - Rs 22I crore) depending on the achievement of FY18F EBITDA (June ended), company said in release.
Further, the valuation is subject to change based on customary closing conditions. The company plans to finance the acquisition through a judicious mix of debt and internal cash accruals, it added.
Selling in automobiles and banking names has dragged the market from the flat lines, with the Nifty giving up 10,800-mark. IT, metals and pharma look to hold the market from falling further. Midcaps have given up all gains. Vedanta, Infosys, and Bajaj Finance are the top gainers, while Tata Motors and ICICI Bank have lost the most.
Shares of ICICI Bank lost around 2 percent in the morning trade as investors turned cautious of another whistleblower complaint against it.
The stock has touched an intraday high of Rs 300.20 and an intraday low of Rs 295.45.
The bank now faces allegations of "irregularities in the conduct of some borrower accounts" and "incorrect accounting", thanks to a third whistleblower complaint in as many years.
Crude Update: Brent crude oil prices fell over 1.5 percent on Monday as traders factored in an expected output increase that was agreed at the headquarters of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna on Friday.
Brent crude futures, the international benchmark for oil prices, were at USD 74.21 per barrel at 0343 GMT, down 1.8 percent from their last close.
US West Texas Intermediate (WTI) crude futures were at $68.40 a barrel, down 0.3 percent, supported more than Brent by a slight drop in US drilling activity.
Prices initially jumped after the deal was announced late last week as it was not seen boosting supply by as much as some had expected.
The market has begun this week on a subdued note. Indices opened mildly lower, but are now trading flat. The Nifty manages to hold 10,800 levels. Some strength is visible among pharmaceutical names, which are currently trading higher by a percent. The IT index is also trading up a percent. Vedanta, Infosys and UltraTech Cement are the top gainers, while Tata Motors, NTPC, and BPCL have lost the most.
Market Open: Shares have begun the week on a flat note, with the Nifty holding 10,800-mark.
The Sensex is down 17.18 points at 35672.42, and the Nifty down 8.20 points at 10813.70. About 385 shares have advanced, 456 shares declined, and 56 shares are unchanged.
Infosys, Lupin, IndusInd Bank, Vedanta are the top gainers, while Dr Reddy's, Tata Motors, ICICI Bank, RIL, Yes Bank and SBI are the top losers.
Among the sectors, auto, energy, infra are trading lower, while IT, metal and pharma gain the most.
Asian shares got the week off to a cautious start on Monday amid lingering concerns about escalating trade frictions while US oil prices maintained hefty gains made after major oil producers had agreed on a modest increase in production
Rupee Update: The Indian rupee opened marginally lower by 6 paise at 67.90 per dollar on Monday versus 67.84 Friday.
On the daily chart, USD-INR has been falling down from last two trading sessions after taking a resistance of upper Bollinger band formation; which indicate bearish sentiments for near term.
In addition, Price has shifted below 21 DEMA on daily chart, which confirms downward trend for near term.
Moreover, a momentum indicator RSI (14) and MACD has turned down with negative crossover on daily chart.
So based on the above analysis, we expect bearish movement in USD-INR towards 67.50 levels, said Choice Broking.
Here are stocks that are in news today:
Ex-Split: Uniply Industries from Rs 10 to Rs 2
Phoenix Mills' subsidiary acquires under-construction retail development in Indore for Rs 2.34 billion
Tata Power: Gets defence industrial licence nod from SEZ BoA
Dena Bank approved raising of the fund upto an amount of Rs 1800 crore
Bombay Dyeing signed term sheet to acquire additional 52.11% stake in existing JV in PT. Five Star Textile Indonesia
Bharti Infratel: Pankaj Miglani resigns as CFO of the firm, effective August 9, 2018. S Balasubramanian to replace him as CFO and Key Managerial Personnel
Sadbhav Engineering approves allottment of NCD worth Rs 170 crore
Goa Carbon: Temporary shutdown operations at Bilaspur unit for maintenance
Tech Mahindra: NCLT sanctioned the Scheme of Amalgamation of Sofgen India with company
SREI Infra: Sandeep Sultania appointed as CFO Of the firm, effective July 5, 2018
Sandhar Technologies signed JV agreement with Whetron Electronics Co. Taiwan
Capital First's Debenture committee meeting on June 27 to consider issue of NCD
ICICI Bank: The bank has said that in March 2018, it received anonymous complaint which alleged issues in financial statements
SBI: Arijit Basu to be new managing director of SBI
Indian market is likely to start the week on the negative note as most of the Asian market are trading weak.
Also, Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 54.5 points or 0.51 percent. Nifty futures were trading around 10,782.5-level on the Singaporean Exchange.