Nifty ends June series below 10,600, Sensex dips 179 points; Midcap index falls 2%
28 June 2018
Rupee Update: The Indian rupee recovered further from day's low, trimming losses to 13 paise from 46 paise.
It was trading at 68.76 against the US dollar.
Market Closing: Benchmark indices ended sharply lower on the expiry day of June futures & options contracts, dragged by banking & financials and Reliance Industries. Weakness in the rupee and lingering trade tensions between the US and China also dented market sentiment.
The 30-share BSE Sensex shed 179.47 points to 35,037.64 and the 50-share NSE Nifty fell 82.30 points to 10,589.10 while the Nifty Midcap index dropped nearly 2 percent on weak market breadth.
More than two shares declined for every share rising on the BSE.
Reliance Industries (down 2 percent), ICICI Bank (2.7 percent), HDFC (1.41 percent), Bajaj Finance (2.6 percent), Tech Mahindra (7 percent), Titan Company (3.83 percent) and HPCL (down 5.5 percent) were top contributores to the Nifty's fall.
HDFC Bank (up 0.86 percent), Infosys (1.54 percent), Kotak Mahindra Bank (1.13 percent), Hindalco Industries (1.45 percent) and Tata Steel (up 1 percent) capped losses.
MRPL, Adani Power, Ashok Leyland, Jain Irrigation, Sequent Scientific, Cholamandalam Finance, Federal Bank and IDFC Bank were under pressure while Just Dial, PVR, Strides Shasun and CG Power gained up to 11 percent.
Rupee Update: The Indian rupee recovered from its intraday all-time low of 69.09 against the dollar.
It was trading at 68.85 a dollar, down 22 paise.
Market Capitalisation: Tata Motors' market capitalisation (Rs 76,153.82 crore) has fallen below that of Bajaj Auto (Rs 78,417.02 crore) and Eicher Motors (Rs 77,337.35 crore).
Manpasand Beverages in focus: The company has entered into a ten year agreement with Parle Products Private Limited for joint distribution of their products, pan-India.
As a part of this association, both the companies will jointly distribute their products across 4.5 million outlets and aim to achieve a significant market share in their respective categories, the company said.
The stock price trimmed losses to 0.7 percent from 4 percent after the news.
Comment on rupee's impact on crude oil by Rushabh Maru - Research Analyst , Anand Rathi Commodities:
We have seen dramatic rise in the crude oil prices in the last couple of months due to geo-political concern. There are supply issues from Venezuela, Libya and Canada. US has asked countries to cut imports of Iranian oil from November. So the crude oil prices are moving higher in the international market.
On the other hand, the rupee has depreciated to all time low levels. As a result, crude oil prices touched Rs 5000 on the MCX yesterday.
The rupee is expected to depreciate in coming sessions due to steady capital outflows and worsening macroeconomic conditions. Hence, we expect that crude oil prices might trade in a range of Rs 4800 to Rs 5200 on the MCX in coming sessions.
Market Update: The market extended losses in second part of the trading session, with the Sensex falling more than 200 points following correction in the rupee and global weakness.
The Nifty index is trading way below the 10,600 levels ahead of expiry of June futures & options contracts today, weighed by Reliance Industries, TCS and banking & financials stocks.
European markets trade lower amid ongoing trade fears.
Index Launch: Asia Index Private Limited, a joint venture between S&P Dow Jones Indices and BSE Ltd, announced the launch of the S&P BSE Diversified Financials Revenue Growth Index.
The index is designed to measure the performance of private (non-state owned) companies from the S&P BSE 500, classified as finance under the BSE sector Classification model, the Asia Index said.
JK Cement to raise upto Rs 700 crore: The board of directors of the company in their board meeting held decided to offer, issue and allot equity shares through domestic and/or international offerings representing equity shares etc. for an amount not exceeding Rs 700 crore, through public issue and/or private placement and /or rights issue and / or preferential allotment and/or qualified institutional placement subject to shareholders approval sought in the ensuing annual general meeting convened on July 28, 2018.
The fund is proposed to be utilised for the purpose of funding company's long term growth, repayment/prepayment of debt, general corporate purposes including capital expenditure and working capital or any other purposes as may be permissible under applicable law and approved by the board of directors.
At 14:35 hrs JK Cement was quoting at Rs 866.85, down Rs 8.10, or 0.93 percent.
Adani Ports signs SPA: Adani Ports has signed share purchase agreement (SPA) between Larsen and Toubro, Marine Infrastructure Developer, L8T Shipbuilding and Adani Kattupalli Port to acquire 97% stake of Marine Infrastructure Developer.
At 14:22 hrs Adani Ports and Special Economic Zone was quoting at Rs 361.95, down Rs 2.75, or 0.75 percent.
Market check: The benchmark indices slipped further in the afternoon trade as Nifty slipped below 10,600 level.
The Sensex is down 209.47 points at 35007.64, and the Nifty down 87.10 points at 10584.30. About 700 shares have advanced, 1759 shares declined, and 138 shares are unchanged.
Power Grid Corp, SBI, ICICI Bank, HDFC and Coal India are the top losers on the Sensex.
Capacite Infraprojects bags order: Capacite Infraprojects has received repeat order worth Rs 190.90 crore (excluding GST & value of free issue materials i.e. re-inforcement Steel and concrete) for construction of rehab building on turnkey basis from Sheth Creators as per finishing matrix including Civil-RCC, block works, plaster works, water proofing, finishing works, electrical, plumbing, and fuefighting work etc. excluding excavation & elevators work at Marine Lines.
At 14:03 hrs Capacite Infraprojects was quoting at Rs 263.05, down Rs 1.35, or 0.51 percent.
Market Update: Rupee weakness and US-China trade concerns continued to weigh on the market as the Sensex is falling around 100 points and the Nifty is trading way below 10,650 levels ahead of expiry of June futures & options contracts.
The broader markets are not showing any sign of recovery as the Nifty Midcap is down over a percent, taking total year-to-date loss to 15 percent.
HDFC (down 2 percent), Reliance Industries (0.93 percent), ICICI Bank (1.5 percent), Bajaj Finance (2 percent), Titan Company (4 percent) and Tech Mahindra (5.4 percent) are top contributors to the Nifty's fall. The buying in Infosys (up 1.6 percent) and HDFC Bank (0.75 percent) capped losses.
Asia Update: Asian stocks closed lower, with China markets falling back into negative territory as investors digested developments related to the US stance on foreign investment amid lingering trade concerns.
In Tokyo, the Nikkei 225 was little changed, finishing the day lower by 0.01 percent, or 1.38 points, at 22,270.39. Over in Seoul, the Kospi declined 1.19 percent to end at 2,314.24.
China markets turned lower in the afternoon after earlier getting some reprieve from recent losses. On the mainland, the Shanghai composite fell 0.97 percent to 2,785.98, notching its fourth-straight session of declines.
Hong Kong's Hang Seng Index, however, was up 0.30 percent at 13:39 hours IST, reports CNBC.
Europe Update: Shares in Europe were trading mixed as concerns over global trade returned.
France's CAC and Germany's DAX traded in the green while Britain's FTSE is under pressure.
Trade concerns continue to weigh on market sentiment. Money managers were digesting news of the latest US position on foreign investment. The US government said Wednesday it will use the Committee on Foreign Investment in the United States (CFIUS) to address concerns over foreign acquisitions of US technologies, reports CNBC.
Market Update: The market remained under pressure in afternoon with the Nifty trading below 10,650 levels ahead of expiry of June futures & options contracts today. Sharp depreciation in the rupee and ongoing global trade worries pushed the market lower.
The Nifty Midcap index fell over a percent, taking total year-to-date loss to 15 percent.
The 30-share BSE Sensex slipped 99.85 points to 35,117.26, and the 50-share NSE Nifty dropped 48.60 points to 10,622.80, dragged by banking & financials stocks and Reliance Industries.
Rupee Update: The rupee recovered marginally from its life-time low to trade at 68.95 per dollar amid heavy month-end demand for the American currency from importers and banks.
The domestic unit plunged to a record low at 69.10 before gaining ground to 68.95 at 1030 hrs, still down by 34 paise.
The Indian unit resumed sharply lower at 68.89 from yesterday's closing level of 68.61 at the inter-bank foreign exchange here.
Rising crude oil prices have deepened concerns about the country's current account deficit and inflation.
Crude oil prices rose in Asia as the US pressured allies to stopped buying Iranian crude amid concerns over supply disruptions in Libya and Canada.
Brent crude futures surged to USD 77.50 a barrel, the highest since 2014, on tight supply, reports PTI.
Acquisition: RBL Bank has acquired 100 percent stake in Swadhaar Finserve Pvt. Ltd. (SFPL) – an exclusive business correspondent of RBL Bank engaged in offering services to the underbanked segment in rural and semi-urban areas.
RBL Bank has brought this additional stake from marquee investors including global financial inclusion nonprofit Accion, which has been instrumental in shaping Swadhaar into one of India’s most effective lenders for underserved families and businesses. SFPL works as a last-mile distributor of comprehensive financial services and products, particularly loans and savings products, to low-income households and microenterprises across India.
Swadhaar’s extensive reach – with a network of 331 branches across 16 states and 2 union territories – and transformation from an NBFC to one of India’s first banking correspondents pioneered an innovative way to reach underserved communities throughout the country, the bank said.
Today, the company has an AUM of around Rs. 2,000 crores and reaches 750,000 customers.
"RBL Bank’s acquisition of SFPL is in line with its stated policy of strengthening its market position in this inclusive finance segment. SFPL and a few other select BC partners help RBL Bank in having a twin strategy of distribution, which is key towards having a diversified pan-India presence," the bank said.
Market Update: The market continued to trade lower with the Nifty falling below 10,650 levels ahead of expiry of June futures & options contracts today, after the consistent correction in midcaps and smallcaps. The weakness in rupee and lingering trade concerns also weighed on the market.
The Nifty Midcap fell a percent, taking year-to-date loss to 14 percent and outperforming the Nifty50 index.
All sectoral indices are in the red except Auto and Metal that are flat in trade.
The 30-share BSE Sensex dropped 97.34 points to 35,119.77 and the 50-share NSE Nifty shed 44.10 points to 10,627.30. About two shares declined for every share rising on the BSE.
Comment on GST implementation of one year: Prasanth Prabhakaran, Senior President and CEO, YES Securities said
GST was a historic step to provide a simplified, single tax regime in line with the tax framework applicable across the globe. With completion of one year of GST implementation, the pains are behind, and gains have already started showing.
The Government has been more than proactive in meeting, resolving and addressing issues raised by India Inc. Post the launch, multiple levels of simplification in terms of slabs and processes, have ensured higher tax collections and ease of doing business.
This will reflect in greater economic activity at every level, thereby impacting the market positively.”
Capital Raising Plan: Shares of Allahabad Bank and Canara Bank rose 2-3 percent on the bank of capital raising plan.
The Allahabad Bank at its annual general meeting held on June 27 2018 approved raising of Rs 1,900 crore equity capital of the bank through QIP, FPO, rights issue or in combination thereof.
Canara Bank at it board meeting approved to raise about Rs 1,000 crore through employee stock purchase scheme.
Kotak view on Colgate: Kotak Securities has maintained add rating on Colgate Palmolivewith a target of Rs 1,300 per share.
According to research house, the company is not regaining any market share lost to Patanjali yet, while underlying category volume growth is inching up but at a slow pace.
The price hikes is going to take care of input cost inflation trends and expect higher advertising investment on flagship brand in naturals segment, it added
Buzzing: Shares of Aditya Birla Capital rose 2 percent intraday as research firm Credit Suisse has maintained outperform rating with a target at Rs 175 per share.
The research house has remained positive given its good growth potential and improving profitability across business.
The company management expects benefits of opex leverage is playing out and targeting 16-18 percent RoE.
Withdrawal of Dividend: Indian Bank board has prudentially decided for withdrawal of the earlier resolution dated May 5 recommending declaration of dividend at Rs 6 per equity share.
Buzzing: Shares of Lupin added nearly 2 percent intraday as company partnered with Mylan to commercialise Enbrel biosimilar.
Through the partnership agreement, Mylan will commercialize Lupin's proposed etanercept biosimilar in Europe, Australia, New Zealand, Latin America, Africa and most markets throughout Asia, company said in release.
Enbrel is a TNF-inhibitoriindicated to treat certain autoimmune diseases, including rheumatoid arthritis, psoriatic arthritis, plaque psoriasis and ankylosing spondylitis, it added.
As per IQVIA data, Enbrel had global brand sales of approximately USD 11.6 billion for the 12 months ending December 31, 2017.
Market Outlook: The S&P BSE Sensex might be down by about 3 percent from its all-time high while for the Nifty it is nearly 5 percent from its lifetime high of 11,171 which does not mean that we are in a bear market but a more matured phase of a bull market, Bharat Iyer, MD, JP Morgan highlighted in an interview with JPMorgan.
“When we started the year with expectations of low returns and high volatility. The Nifty5o in a way has risen from 10,000 in the beginning of the year to 10,600 now, a return of 6-7 percent. The will hit 11,300 through course of the year amid volatility,” said Iyer.
The volatility is likely to continue and midcaps are vulnerable at current levels which are likely to stay in that state for some more time thanks to excess valuations, rising cost of capital and global tensions.
Infosys Results Date: Infosys, the country's second largest IT services company, is scheduled to announce its financial results for the June quarter on July 13.
The meeting of the board will be held on July 12 and 13 to consider the audited consolidated financial results of the company and its subsidiaries for the quarter ending June 30, 2018, Infosys said in a BSE filing.
"The financial results will be presented to the board of directors on July 13, 2018 for their approval," it added.
Investors will not only be keen on the company's scorecard for the June quarter and its take on the demand environment for tech services, but will eagerly also watch out for the management's narrative and operational strategy, given the backdrop of governance-related issues, reports PTI.
Buzzing: Shares of Exide Industries added 2 percent as company entered in to joint venture agreement with Switzerland company.
The company has signed a joint venture agreement with Leclanche S.A., a company incorporated under the laws of Switzerland and having its registered office at Switzerland.
Leclanche will grant licence to joint venture company (JVC) of its latest and most efficient technology for manufacturing of lithium batteries, module making and associated systems.
The company will make an initial capital contribution of Rs 3,74,950 at a subscription price of Rs 10 per share and Leclanche will make an initial capital contribution of Rs 1,25,050 at a subscription price of Rs 10 per share constituting approximately 74.99 percent and 25.01 percent of the total paid up capital of JVC respectively.
Buzzing: Dr Reddy's Laboratories share price gained over a percent after the US health regulator issued Establishment Inspection Report for the company's Medak units.
The pharma major informed exchanges that it has received an Establishment Inspection Report (EIR) from the US Food and Drug Administration for units located in Medak district, Telangana.
The US health regulator had conducted audit of API Hyderabad Plant 3 at Bollaram and API Hyderabad Plant 1 at Jinnaram Mandal, Medak District, Telangana on March 9 and March 16, respectively.
Market Update: The market is trading mildly lower in morning amid ongoing trade tensions between the US and China, and after the rupee breached 69 a dollar for the first time against the dollar.
The Nifty Midcap index continued to underperform frontliners, falling more than half a percent on weak market breadth. About two shares declined for every share rising on the BSE.
The 30-share BSE Sensex fell 28.79 points to 35,188.32 and the 50-share NSE Nifty fell 20.40 points to 10,651.
Rollovers analysis by ICICI Securities:
Nifty rollovers were near 41.83 percent, in line with the 3-month average of 42.92 percent.
Marketwide rolls were at 59.99 percent compared to the 3M average of 58.33 percent.
Sectorally, technology, telecom and metals are seeing high rollover of positions while infra, realty and capital goods are seeing relatively low rolls into July series.
Highest rollover was observed in PEL (85 percent), JSW Steel (84 percent), Century Textiles (78 percent), Shriram Transport Finance (77 percent) and Idea (76 percent) while rollover was relatively low in KPIT, Oil India, OFSS, STAR and SRF Ltd.
Among index stocks, Tech Mahindra, Sun Pharma, Tata Steel and Zee Entertainment are seeing high rolls into the July series while Kotak Mahindra Bank, ONGC, HCL Tech, Cipla are seeing relatively low rolls into the next series
Rollover activity in the Nifty remained subdued in the last session as well amid a further decline in roll spread. The near month Nifty futures saw closure of almost 3.7 million shares while July series added almost 4.6 million shares indicating addition of fresh short positions as roll spread declined to just 2 points. During the session, roll spread turned negative also suggesting aggressive short rollover.
Despite continued closure, Nifty near month futures still has 16.6 million shares, which is in line with the last couple of months prior to settlement. Among index heavyweights, oil & gas and private sector banking stocks continue to hold significant open interest in the near month series while metal and FMCG are seeing high rolls into next series. Bank Nifty futures also saw accumulation of fresh open interest where roll cost turned negative in the last session
Rupee Trade: The Indian rupee breached 69 against the dollar for the first time on strong demand for American currency from exporters and banks.
Market Opening: Benchmark indices opened mildly lower after the Indian rupee touched an all-time low of 68.89 to the dollar.
The 30-share BSE Sensex fell 33 points to 35,184.11 and the 50-share NSE Nifty slipped 23 points to 10,648.40.
TCS, Infosys, Wipro, HCL Technologies, Tech Mahindra, Kotak Mahindra Bank, IndusInd Bank and Hindalco Industries are early gainers.
Tata Motors is under pressure.
Nifty Midcap index fell 93 points and Nifty Bank lost 23 points.
Jet Airways, SpiceJet, Apollo Tyres, Ashok Leyland, Bank of Baroda, HDIL, Adani Power and Tata Power fell 1-2 percent.
Stocks in News:
Thyssenkrupp, Tata Steel are said closing in on JV Deal (Reuters).
Fortis Healthcare to extend deadline for submission of bids.
Bank of Maharashtra clarified exposure of Rs 96.52 crore to DS Kulkarni.
Karnataka Bank hiked deposit interest rates by 10 basis points to 7.35 percent across various tenors.
Mercator arm gets mining lease in Gujarat for 20 years; 23 million barrels of oil to be exploited.
Talwalkars Lifestyles to be listed on both exchanges from June 29.
Exide Industries entered into a joint venture with Leclanche SA to build lithium-ion batteries.
GMR Infra declared as selected bidder for development of a commercial port located at one of strategic nodes of the Vizag. Port will have initial capacity of 16 MT.
Exposure Margin: The National Stock Exchange has increased its additional exposure margin for select companies from June 29-July 26, 2018.
Clients with positions will now have margin apart from existing span plus exposure.
The exchanges has increased additional margin for Balrampur Chini, Capital First, CESC, DHFL, GMR Infrastructure, Granules, IDFC Bank, India Cements, Infibeam, IRB Infrastructure, Jain Irrigation, Karnataka Bank, Raymond, TV18 Broadcast, Reliance Capital, Tata Communications, BEML, Century Textiles and Wockhardt.
USFDA Approval: Pharma major Dr Reddy's Laboratories said the US Food and Drug Administration has issued Establishment Inspection Report for the API Unit-I & III in Telangana.
Rupee Trade: The Indian rupee touched fresh record low of 68.89 against the dollar in opening trade, falling 26 paise from the previous close. Consistent dollar demand from exporters and banks pushed it lower.
In previous session, the currency closed at 68.63 to the dollar, down 38 paise.
Market Pre-opening: Benchmark indices were flat in the pre-opening trade, following mixed trade in Asian stocks amid trade tensions between the US and China.
The 30-share BSE Sensex rose 34.07 points to 35,251.18 while the 50-share NSE Nifty fell 8.70 points to 10,662.70.