Sensex gives up all gains to end flat, Nifty manages to stay above 11,000

13 Jul 2018

Market at Close: A selloff in the last hour dragged benchmark indices from its high points. The market has managed to end on a flat note.

The Sensex is down 6.78 points or 0.02% at 36541.63, while the Nifty is down 4.30 points or 0.04% at 11018.90. The market breadth is negative as 803 shares advanced, against a decline of 1,809 shares, while 149 shares were unchanged.

All sectoral indices have managed to end in the red, with cuts visible in financials, FMCG and pharma names. Meanwhile, IT and energy stocks were the top gainers.

Infosys, Reliance Industries, Titan and BPCL were the top gainers, while ONGC, ITC, Zee Entertainment and Bharti Infratel were the top losers.

Rupee pared morning gains: The Indian rupee trimmed its morning gain, currently trading 8 paise higher at 68.49.

Rupee gained in the early trade on Friday. It has opened higher by 20 paise at 68.37 per dollar versus 68.57 yesterday.

Gold Update: Gold prices drifted further lower by Rs 95 to Rs 31,115 per 10 grams at the bullion market today, extending its fall for the fourth straight day, tracking a weak global trend amid fall in demand from local jewellers.

However, silver held steady at Rs 40,030 per kg in scattered deals.

Multiplex stocks take a hit:Share price of PVR, Mukta Arts and Inox Leisure fell 8-14 percent intraday on Friday as multiplexes in Maharashtra are soon to be allowed to allow people to carry their own food items inside halls.

While speaking in State Legislative Council, Maharashtra Minister said the people can carry their own food items in multiplexes, reports CNN-News18. "We will act against multiplexes if they don’t allow people to carry their own food."

This is expected to be effective from the day of August 2018.

Foods and beverages segment is generally a high margin business for multiplexes and that contributes 35-40 percent to industry EBITDA.

Market Update: The market has given up almost all of its gains, but indices have managed to hold their key levels.

The Sensex is up 20.37 points or 0.06% at 36568.78, while the Nifty is down 2.70 points or 0.02% at 11020.50. The market breadth is negative as 693 shares advanced, against a decline of 1,753 shares, while 149 shares were unchanged.

Midcaps have further extended their fall, while financials have continued to bleed. IT stocks too have given up some of their gains, with the Nifty IT index trading flat.

Multiplex stocks fall: Share price of PVR, Mukta Arts and Inox Leisure fell 5-13 percent intraday on Friday as Maharashtra government may allow people to carry their own foods into multiplexes from next month.

This is expected to be effective from the day of August 2018.

Market Update: Consolidation has continued on the market from its opening levels, with the Sensex trading above 36,600, while the Nifty too held 11,000. Energy stocks have extended their surge, while IT stocks, too, have continued to gain. Midcaps, on the other hand, have extended their fall to one percent. Reliance, Infosys, Titan and BPCL were the top gainers, while ITC, Axis Bank, UPL and Zee Entertainment lost the most.

Idea Cellular share price fell 2.7 percent intraday on Friday after global research firm Credit Suisse maintained its Underperform rating on the stock with a target price at Rs 45, implying a 17 percent downside.

After the merger between the company and Vodafone, the new entity may prioritise cost savings over market share retention and the cost base should be close to current Bharti mobile cost base, the research house said.

Credit Suisse has merged company's capex estimates significantly below smaller peers.

Recently the government approved the merger between Idea Cellular and Vodafone India, paving the way to become country's largest telecom operator. The new entity will be named Vodafone Idea Limited.

Market Update: Benchmarks are trading mildly higher, but near the flat line, while the Nifty has continued to hold key 11,000-mark.

The Sensex is up 59.55 points or 0.16% at 36607.96, and the Nifty up 3.30 points or 0.03% at 11026.50. The market breadth is negative as 625 shares advanced, against a decline of 1,578 shares, while 127 shares were unchanged.

Adani Ports and Reliance Industries are the top gainers, while Axis Bank, ONGC, UPL and Bharti Infratel lost the most.

The shares of Trigyn Technologies gained 6 percent in intraday Friday as company entered into master service agreement with Software Technology Park of India.

The firm as consortium partner with ESDS Software Solution has entered into a master service agreement to build and operate datacenter on revenue sharing model with Software Technology Park of India at Electron City in Bangalore based on the public-private partnership (PPP) revenue sharing model.

The contract includes the responsibility to design,supply, operate and implement the Tier-3 datacenter (IT & Non-IT Infrastructure) and shall also host the required IT or cloud solution services, operate and maintain the datacenter and provide services to customers for a period of 10 years which is extendable for a further period of five years at the discretion of STPI on the same terms and conditions.

Allahabad Bank to sell its non-core assets: Shares of Allahabad Bank was down 2.6 percent as bank proposes to sell its non-core assets.

In compliance with the Government of India directives under PSBs Reform Agenda, bank has initiated various steps to leverage its strengths for focusing on its core business and as a part of its said initiatives, the bank proposes to sell its non-core assets including divestments of its stake in joint ventures, associates, selling some of the immovable properties owned by the bank.

Buzzing: Shares of Music Broadcast was down 4.5 percent on Friday. The company's board meeting will be held on July 24, 2018, to consider and approve unaudited financial results for the quarter ended June 30, 2018 along with the limited review reports of the statutory auditors thereon.

In the said meeting the board will also consider the proposal of buyback of shares.

Market Update at 10:40 am:After seeing a strong opening, benchmark indices have given up a huge chunk of their gains. The Sensex is above 36,500, while the Nifty is holding 11,000-mark. Selling pressure in midcaps as well as banking names have dragged the indices lower. Energy and IT indices are trading in the green. Infosys is trading higher by 1.5 percent ahead of Q1 results, while other IT stocks such as Wipro, too, saw a surge. SBI and ONGC are the top losers.

Market Update:The market is currently off its high points, with the Sensex currently trading flat, while the Nifty is continuing to hold 11,000.

The Sensex is up 37.90 points or 0.10% at 36586.31, while the Nifty is down 2.20 points or 0.02% at 11021.00. The market breadth is negative as 647 shares advanced, against a decline of 1,094 shares, while 93 shares are unchanged.

Wipro and Reliance Industries are up 1-3 percent, while State Bank of India, Axis Bank, UPL and Bharti Infratel have lost the most.

Market Update: Equity benchmarks have resumed their uptrend from Thursday as the Sensex is trading over 150 points higher, while the Nifty is placed above 11,070. Financial stocks are seeing some pressure, but other sectoral indices such as auto, energy and metals are all trading in the green. Midcaps continue to remain under pressure; the Nifty Midcap index is flat with a negative bias.

Among stocks, HCL Tech is seeing some profit booking this morning after the firm announced Rs 4,000-crore buyback; it had rallied in the run up to this Board meeting which took this decision. Shares of Infosys are up 1 percent ahead of Q1 results that will be declared later in the day. Fortis Healthcare, on the other hand, is up around 3 percent after IHH’s bid was accepted by the firm.

Rupee update:The Indian rupee gained in the early trade on Friday. It has opened higher by 20 paise at 68.37 per dollar versus 68.57 yesterday.

The dollar-rupee July contract on the NSE was at 68.67 in the previous session. July contract open interest declined 3.85% in the previous day, said ICICIdirect

We expect the USD-INR to meet supply pressure at higher levels. Utilise upsides in pair to initiate short positions, it added.

Market Opens:The market has begun the day on a positive note, with the Sensex gaining around 100 points in the opening tick, while the Nifty has managed to stay around 11,000-mark.

The Sensex is up 97.49 points or 0.27% at 36645.90, while the Nifty is higher by 26.80 points or 0.24% at 11050.00. The market breadth is positive as 259 shares advanced, against a decline of 87 shares, while 36 shares are unchanged.

Majority of sectoral indices are trading in the green, with energy and metal stocks gaining the most, while financials are witnessing some pressure. Midcaps are trading marginally higher.

Shares of oil marketing companies are trading strong. The likes if IOC, BPCL and HPCL are all up as oil prices headed lower, while Infosys was also in the green ahead of its June quarter results.

Among global markets, Asian shares were higher following gains on Wall Street overnight, as concerns over an escalating US trade war with China took a breather.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, building on a 0.6 percent rise on Thursday, after US stocks ended the day higher.

Australian shares also gained 0.2 percent, while Japan's Nikkei stock index was 1.2 percent higher.

Meanwhile, US stocks climbed as top technology names hit record highs and industrials rebounded from losses driven by trade worries the day before.

Helping the move in tech, CA Inc jumped 18.7 percent and was the biggest percentage gainer in the S&P 500 after chipmaker Broadcom announced a surprise $18.9-billion deal to buy the business software company. Broadcom slumped 13.7 percent.

Facebook , Microsoft and Amazon hit all-time highs and, along with Apple and Alphabet , drove gains in the S&P 500 and Nasdaq.

Market Pre-Opening: Equity benchmarks could look to continue with its momentum from Thursday as pre-opening rates indicate a strong start to the indices. The Sensex could open around 100 points higher, while the Nifty is likely to hold 11,000-mark.

At 09:02 hrs IST, the Sensex is up 79.62 points or 0.22% at 36628.03, while the Nifty Index up 43.80 points or 0.40% at 11067.00.

HCL Technologies is likely to open higher after the firm announced Rs 4,000-crore buyback, but one could watch out for profit booking as well, while Fortis Healthcare could be higher by 2 percent after IHH emerged as top bidder to buy the firm.

Expert view:Analysis of CPI numbers by Dhananjay Sinha, Head of Research, Economist & Strategist, Emkay Global Financial Services:

?Retail inflation continued to harden as it stood at 5.0 percent YoY for Jun’18. Core inflation increased sharply to 6.4 percent YoY implying the demand conditions have continued to strengthen.

Rising input prices and depreciation in the currency indicates high pipeline inflation. In the last 7 months, urban core CPI has increased at a much faster pace than rural CPI which signifies relatively stronger improvement in demand conditions in urban areas as compared to rural areas. This is also reflected in IIP numbers and strong retail credit growth of 18.6 percent in May’18.

Rising urban demand on higher government spending is also the reason for elevated current account deficit. Food inflation is expected to rise with sharp hike in MSP of 15 percent YoY. The sticky core inflation and increasing upward risk to overall CPI (our expectation is 5.4-5.8 percent for FY19) is likely to prompt RBI to tighten its stance going forward.

Pre-Market: The Nifty50 is likely to open higher on Friday tracking positive trend seen in other Asian markets. The index closed 74 points higher at 11,023 on Thursday.

Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 12 points or 0.11 percent. Nifty futures were trading around 11,035-level on the Singaporean Exchange.

US stocks climbed on Thursday as top technology names hit record highs and industrials rebounded from losses driven by trade worries the day before, said a Reuters report.

Asian shares were higher on Friday following gains on Wall Street overnight, as concerns over an escalating US trade war with China took a breather, it said.

India's second-largest software services exporter, Infosys is expected to post 1.2-3.1 percent sequential growth in constant currency revenue in the June quarter.

A Reuters poll of analysts sees profit at Rs 3,747.6 crore. Infosys is likely to report 8.5 percent YoY rise in net profit to Rs 3784.20 crore for the quarter ended June, according to estimates by Motilal Oswal.

Analysis of IIP numbers by Dhananjay Sinha, Head of Research, Economist & Strategist, Emkay Global Financial Services:

IIP Numbers: Although IIP momentum further slowed to 3.2 percent YoY, as compared to 4.8 percent in May’18, the growth momentum was relatively broader based. Some of the multiplier effect of elevated government spending and higher household leveraging is reflected in robust auto sector numbers, which in turn is the driving force of growth in capital and consumer durables growth.

Cyclical uptick is largely attributed to higher revenue spending by the government, its multiplier effect, improvement in global trade, depreciation in INR/USD, rising household leveraging and increasing commodity prices. IIP growth in FY19 is likely to accelerate to an average of 6-6.5 percent versus 4.4 percent in FY18.