Banks, oil, infra stocks drag Sensex 273 points; Nifty ends below 10,700 ahead of F&O expiry
27 June 2018
On the global front, Asian markets closed lower, led by the drop in Chinese stocks amid lingering trade worries. China's Shanghai Composite was down 1.11 percent and Hong Kong's Hang Seng shed 1.82 percent while Japan's Nikkei lost 0.3 percent.
European stocks recovered from day's low to trade flat at the time of writing this article.
Crude oil prices traded higher on a supply disruption in Canada, uncertainty over Libyan exports and declining US crude stocks, and after US officials said all countries should stop buying Iranian crude from November. Brent crude futures were at $76.72 a barrel, up 0.54 percent from the last close.
Market Closing: Benchmark indices ended sharply lower amid weak global cues, dragged by oil, banking & financials and infra stocks.
The 30-share BSE Sensex fell 272.93 points to 35,217.11 and the 50-share NSE Nifty declined 97.80 points to 10,671.40 while the Nifty Midcap index shed 277 points on weak market breadth.
About four shares declined for every share rising on the BSE.
Reliance Industries, ICICI Bank, HPCL, BPCL, IOC, Bajaj Finance, L&T ITC and Bajaj Finserv are top contributors to the Nifty's loss.
HDFC Bank, Tech Mahindra and HCL Technologies outperformed.
Among others, Raymond, Arvind, Adani Enterprises, Reliance Communications, Reliance Power, IDBI Bank, CG Power, PFC, REC, Jet Airways, Jaiprakash Associates, NBCC, Manali Petrochemicals, KRBL, Syndicate Bank, Meghmani Organics, Delta Corp, Adani Power and Phillips Carbon Black declined up to 12 percent.
Mphasis, KPIT Tech, Cyient, Hexaware, Mindtree, Dabur, Godrej Consumer, Voltas and Havells gained up to 6 percent.
JSW Steel invests $1 billion in US plants: Leading Indian steel producer JSW Steel has said it is looking for more deals in Europe and the United States to expand its global footprint, according to a report by Bloomberg.
The steel maker is betting on vibrant growth underpinning demand in markets overseas, complementing growth in the domestic market which has seen the company ramp up local production, the report suggests.
Earlier this year, the Mumbai-based steel maker had announced its decision to triple the output at its Texas plant in US. The company also acquired another facility in Ohio, taking total planned investment in the US to $1 billion, the report adds.
Results: Manpasand Beverages has reported 36 percent jump in its Q4 net profit at Rs 42.7 crore against Rs 31.3 crore in a year ago period.
Revenue was up 44 percent at Rs 384.3 crore versus Rs 267.2 crore.
The operating profit rose 41 percent at Rs 73 crore and margin was at 19 percent.
Capacite Infra bags Rs 851.3cr orders: The company received orders from Oberoi Realty Group and Wadhwa Group and order from Kohinoor CTNL Infrastructure Company for total contract value worth of Rs 851.13 crore.
The orders include construction of Skycity Mall at Borivali East, Mumbai from Incline Realty worth Rs 271.47 crore.
The other order is for design, co-ordination & construction of residential project named Wadhwa Wise City at Panvel from Wadhwa Construction and Infrastructure R4 for Rs 519.20 crore.
It also received order worth Rs 60.46 crore for execution of core and shell works for East Tower (Residential) of Kohinoor Square project at Dadar West- Mumbai from Kohinoor CTNL Infrastructure.
Market Update: The market remained under selling pressure in the afternoon, weighed down by oil retailers and index heavyweights Reliance Industries, ICICI Bank and L&T. Weak global cues amid trade fears also pushed the market lower.
The Sensex fell 252.09 points to 35,237.95 while the Nifty continued to struggle below 10,700 levels ahead of expiry of June futures & options contracts.
The Nifty Midcap index dropped nearly 2 percent on weak market breadth. About four shares declined for every share rising on the NSE.
All sectoral indices traded in the red except IT.
IDBI Bank lost another 6 percent after sources told CNBC-TV18 that the lender will soon become a subsidiary of LIC.
Jet Airways fell 5 percent after it has announced discounts up to 30 percent for international flights and up to 25 percent for domestic flights for bookings till June 30.
Jubilant Life Sciences to raise Rs 350 crore: Shares of Jubilant Life Sciences rose 4 percent as company approved raising up to Rs 350 crore via non-convertible debentures.
The board of directors of the company at its meeting held today, decided to obtain approval of the shareholders of the company through postal ballot for issuance of redeemable non-convertible debentures (NCDs) on private placement basis upto an amount of Rs 350 crore.
The proposed issue has been rated AA Stable by CRISIL as compared to AA- Stable for earlier NCD issue of Rs 495 crore by India Ratings.
The proceeds would be mainly utilised for repayment of the existing debt and to reduce the overall cost of borrowing.
Stake Sale : Mindtree clarified that the reports of promoter selling stake in the company are completely false.
Japan’s NEC Corp. and a large global private equity fund are in initial talks to acquire a controlling stake in Mindtree from its founders, the Mint said quoting two people directly aware of the development.
The founders of the software services provider are in talks to sell their entire stake in the company, the report added.
Buzzing: IDBI Bank share price dropped as much as 7.7 percent intraday, on top of 6 percent loss in previous session after a media report indicated that the lender will soon become a subsidiary of country's largest insurance company LIC.
Sources told CNBC-TV18 that LIC board has finalised financial conglomerate vision with all financial services under one umbrella, saying IDBI Bank will be a subsidiary of the insurance major.
LIC's subsidiaries like housing finance, MF and pension fund are running efficiently.
Sources said IDBI Bank deal will reduce operating & distribution costs for LIC and also help it diversify & deepen the distribution. LIC customer services will be strengthened via a dedicated bank.
Europe Update: European markets traded lower while oil prices climbed sharply after the US moved to pressure allies to stop buying Iranian crude.
France's CAC declined half a percent and Germany's DAX dropped 0.75 percent.
Buzzing: HPCL, BPCL, IOC fell 5-8 percent after Brent crude oil prices spiked over $76 a barrel.
Market Update: The market extended losses in the afternoon with the Nifty breaking 10,700 levels ahead of expiry of June futures & options contracts tomorrow, dragged by oil stocks and ICICI Bank.
The Sensex as well as Nifty Bank indices dropped more than 200 points each. The Nifty Midcap index also fell over 1.5 percent.
All sectoral indices are in the red barring IT that trimmed gains to half a percent.
Buzzing: Jet Airways has announced discounts up to 30 percent for international flights and up to 25 percent for domestic flights for bookings till June 30. The stock price fell 4 percent.
Market Update: Benchmark indices extended losses in afternoon trade with the Nifty breaking 10,700 levels, dragged largely by oil stocks and ICICI Bank.
The 30-share BSE Sensex fell 166.29 points to 35,323.75 while the 50-share NSE Nifty dropped 69 points to 10,700.20 ahead of expiry of June futures & options contracts.
The market breadth remained in favour of bears as about four shares declined for every share rising on the BSE.
ICICI Bank tumbled 4 percent and Reliance Industries declined over a percent.
Oil retailers HPCL, BPCL and IOC dropped 5-7 percent while L&T fell 1.8 percent.
Order Win: HG Infra Engineering has received an letter of award from 'Modern Road Makers Private Limited (a subsidiary of IRB Infrastructure Developers Ltd) for a road project valued at Rs 1,172.29 crore in Uttar Pradesh.
Ethanol Pricing: The Cabinet Committee has approved the raising of ethanol price by about Rs 3 per litre.
Tariffs: The Chinese ambassador told India that the world's second largest economy will reduce or cancel, tariffs on 8,549 types of goods from India as well as Laos, Bangladesh, South Korea and Sri Lanka.
Market Update: The market continued to reel under selling pressure with the Sensex falling around 100 points, dragged by oil and banks stocks.
The Nifty Midcap index fell over a percent while the Nifty Bank index sheds over 150 points.
Oil retailers HPCL, BPCL and IOC dropped 5-7 percent after Brent crude futures traded above $76 a barrel amid concerns like supply disruptions in Libya and Canada. US officials statement, which says all countries should stop Iranian crude imports from November, also pushed crude oil prices higher.
IT index is up over a percent as rupee traded around 19-month low of $68.58 a dollar.
JSW Steel to expand steel manufacturing capacity: JSW Steel announced plans to increase the annual steel manufacturing capacity of JSW Vijayanagar Works to 13MTPA, which is likely to be completed by March 2020.
The company has also launched various other upgradation and augmentation projects which are expected to result in substantial cost savings in operations over the long term.
At 12 MTPA currently, JSW Vijayanagar Works is the largest state-of-the-art single location steel manufacturing unit in India.
Buzzing: Shares of Gateway Distriparks added 4 percent as company is going to buy Blackstone's stake in Gateway Rail.
The company has entered into a share purchase agreement for acquiring the compulsorily convertible preference shares (CCPS) and equity shares held by Blackstone GPV Capital Partners (Mauritius) V-H in Gateway Rail Freight.
The company is acquiring the entire CCPS and equity shares held by Blackstone in Gateway Rail Freight for cash consideration of Rs 810 crore.
Rupee Update: The Indian rupee depreciated further in late morning deals, falling 32 paise to 68.58 against the dollar on month-end demand from exporters and banks.
Market Update: The market is under selling pressure amid consolidation with the Nifty trading below 10,750 levels. All eyes are on expiry of futures & options contracts tomorrow.
The 30-share BSE Sensex dropped 70.57 points to 35,419.47 and the 50-share NSE Nifty slipped 39.20 points to 10,730, weighed down by oil & gas, banks and FMCG stocks.
The Nifty Midcap index extended losses, falling more than a percent on weak market breadth. More than three shares declined for every share rising on the BSE.
Gold Update: Gold prices extended fall to a six-and-a-half-month low as the US dollar steadied and investors increasingly turned to other safe-haven assets, amid expectations of more interest rate hikes by the US Federal Reserve.
Spot gold fell for a third straight session and was down 0.2 percent at $1,255.88 an ounce, after hitting its lowest since mid-December at $1,253 earlier in the session.
US gold futures for August delivery were 0.2 percent lower at $1,257.50 per ounce, reports Reuters.
Order Win: HCL Technologies has signed a definitive agreement to acquire Wolfsburg-based IT and engineering services provider, H&D International GrouD.
The acquisition is part of HCL’s long-term growth plan in Germany.
"This landmark deal sees HCL attain significant in-country front office and delivery capabilities and will further enhance the company’s domain expertise in the global automotive sector," the software company said.
The H&D International Group is one of the largest IT service providers in the German automotive industry, and operates in over 20 locations globally including; Germany, the USA, the Czech Republic and Poland.
H&D specialises in IT Infrastructure, application services particularly in R&D IT, shop floor IT and Industry 4 0 solutions and has extensive expertise in SAP, computer-aided technologies (CAx), engineering services and customer-specific product development.
Market Update: The market continued to consolidate ahead of the expiry of June futures & options contracts on Thursday.
The 30-share BSE Sensex fell 6.35 points to 35,483.69 and the 50-share NSE Nifty declined 19.90 points to 10,749.30.
The Nifty Midcap index extends losses, falling 0.8 percent on weak market breadth. More than two shares declined for every share rising on the BSE.
Oil retailers IOC, HPCL and BPCL dropped 5 percent each after Brent crude futures traded above $76 a barrel.
ICICI Bank, ITC, L&T, SBI and Axis Bank slipped 1-2 percent while HDFC Bank, TCS, HDFC, HUL and Infosys gained 0.6-1.6 percent.
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Crude Update: Oil prices rose today, pushed up by supply disruptions in Libya and Canada and after US officials said all countries should stop Iranian crude imports from November.
Brent crude futures were at $76.65 per barrel, up 0.45 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were at $70.78 a barrel, up 0.35 percent.
The United States has told countries to cut imports of Iranian oil to zero from November, a senior State Department official said on Tuesday, reports Reuters.
Buzzing: Technology stocks rallied smartly on Wednesday, with the IT index gaining over a percent after the rupee touched fresh 19-month low of 68.54 against the dollar.
Tech Mahindra was the biggest gainer among IT stocks, rising more than 2 percent while KPIT Technologies, TCS and HCL Technologies rallied over a percent. Infosys was up 0.8 percent.
These software companies earned major revenues through exports, so the weaker rupee is always favourable for them.
Rupee Update: The rupee recovered some opening losses to trade 22 paise lower at 68.47 against the dollar.
It plunged by 30 paise to hit a 19-month low of 68.54 against the dollar in opening trade on strong month-end dollar demand from importers and banks amid sustained foreign capital outflows.
This is the rupee's lowest level against the greenback since November 29, 2016.
The dollar's strength against some currencies overseas weighed on the local unit but a higher opening of the domestic equity markets capped the losses, traders said.
Foreign portfolio investors (FPIs) sold shares worth Rs 538.40 crore yesterday, as per provisional data issued by the stock exchanges.
Yesterday, the rupee lost 11 paise to end at 68.24 against the US currency.
Gallantt Ispat in focus: Shares of Gallantt Ispat gained 2 percent as the company is going to consider sub-division of its equity shares.
The company's board meeting will be held on June 29 to decide and approve sub-division (split) of equity shares of face value of Rs 10 each which subject to the approval of the members of the company.
The board will also consider alteration of capital clause in memorandum of association of the company as per Sections 13 and 61 and all other applicable provisions, if any, of the companies Act, 2013 subject to the approval of the members of the company.
Buzzing: Share price of Fortis Healthcare recouped opening losses, rising nearly percent.
The stock fell 6 percent in opening after the company reported Q4FY18 loss at Rs 932.02 crore, which include exception loss of Rs 833.5 crore.
The company posted a net loss of Rs 68 crore during the same quarter of previous year. Revenues from operations or total income declined 4.69 percent to Rs 1,105.09 crore in Q4FY18, compared to last year's Rs 1,159.5 crore.
Provisions in Q4 FY18 were related to certain amounts totaling to around Rs 580 crore due to the company, the recoverability of which is doubtful.
Market Update: The market continued to consolidate ahead of expiry of June futures & options contracts on Thursday. Asian markets traded lower as trade-related headlines took center stage for investors.
The 30-share BSE Sensex rose 33.10 points to 35,523.14 while the 50-share NSE Nifty fell 5.00 points to 10,764.20.
IT index outperformed all other indices, rising more than a percent as the rupee hit 19-month low of 68.53 against the dollar.
Buzzing: ?IndusInd Bank share price hit a fresh record high of Rs 1,995 in the opening after the private sector lender decided to acquired infra lender IL&FS' brokerage business. However, the stock price immediately wiped out those opening gains to trade 0.33 percent lower at Rs 1,977 on the BSE, at 09:30 hours IST.
The city-based lender, which has recently got the final nod for a merger with microlender BFIL, has received the Reserve Bank go-ahead for acquiring IL&FS Securities Services, it said in a statement.
"The acquisition will help us scale up the present capital market business in the bank and bring new specialised products, hitherto not offered by us, to our clients," said Romesh Sobti, managing director and chief executive officer, IndusInd Bank.
Market Opening: Benchmark indices traded flat in the opening on Wednesday despite weakness in Asian stocks due to trade tensions.
The Sensex rose 37.63 points to 35,527.67 while the Nifty fell 0.90 points to 10,768.30.
Bharti Infratel, Zee Entertainment, NTPC, UltraTech Cement, Dr Reddy's Labs, Reliance Industries and HDFC Bank are under pressure.
Aurobindo, Sun Pharma, M&M, Tata Motors, HCL Technologies, Infosys, Yes Bank, Titan Company, Kotak Mahindra Bank and Tech Mahindra are early gainers.
Nifty Midcap and Bank indices are flat.
IndusInd Bank hit fresh record high, up 0.24 percent.
Bata India, Godrej Consumer, Hexaware and Jubilant Foodworks also hit new high.
Future Retail, Majesco and Mphasis gained.
Fortis Healthcare, IDBI Bank, Adani Enterprises and Ashok Leyland fell 0.5-3 percent.
Stocks In News:
Manpasand Beverages to approve Q4 results today.
Infosys arm to provide banking solution to Santander in UK
Voltas clarified that it is not aware on media report on Tata Sons selling stake.
Tata Communications partnered with data center solutions company Edgeconnex.
Majesco U.S. arm’s insurance platform goes live for American Capital Assurance Corp.
Hindustan Unilever said reports of Horlicks deal speculative.
IDBI Bank clarified it has exposure of Rs 47.18 crore to DS Kulkarni Developers.
Relaxo Footwear mulls merging Marvel Polymers and Relaxo Rubber with self.
Rupee Opening: The Indian rupee opened sharply lower at 68.43 against the dollar on Wednesday on demand for American currency from exporters.
It traded at 68.49, down 25 paise or 0.37 percent from previous close.
Market Pre-Opening: Benchmark indices traded higher in pre-opening despite weakness in Asian stocks amid trade tensions.
The 30-share BSE Sensex rose 85.04 points to 35,575.08 and the 50-share NSE Nifty gained 6.70 points at 10,769.20.
Pre-Market: The Nifty50 is likely to open flat on Wednesday tracking muted trend seen in other Asian markets. The index closed 6.7 points higher at 10,769 on Tuesday.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 17.5 points or 0.16 percent. Nifty futures were trading around 10,743-level on the Singaporean Exchange.
US stocks found their footing on Tuesday, helped by gains in the energy, technology and consumer discretionary sectors after a sharp sell-off a day earlier on spiraling global trade tensions, said a Reuters report.
Asian shares were subdued on Wednesday as weakness in Chinese stocks and the yuan weighed on sentiment, while oil held hefty gains as the United States pressured allies to stop buying Iranian crude, it said.
MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.05 percent after touching a two-year trough on Tuesday. Japan's Nikkei has been faring better and was all but flat in early trade.
Oil prices rose on Wednesday, pushed up by supply disruptions in Libya and Canada and after US.officials said all countries should stop Iranian crude imports from November.