Sensex ends over 200 points lower, Nifty gives up 10,950; Tata Steel down 7%
16 July 2018
Market at Close: Sharp selloff in the last hour dragged equity benchmarks lower on Monday, with the Nifty ending below 10,950. The Sensex ended over 200 points lower.
The Sensex was down 217.86 points or 0.60% at 36323.77, while the Nifty was down 82.00 points or 0.74% at 10936.90. The market breadth is negative as 554 shares advanced, against a decline of 2,042 shares, while 178 shares were unchanged.
Infosys, NTPC, and Tech Mahindra are the top gainers, while Tata Steel, Sun Pharma, and Dr Reddy’s Laboratories have lost the most.
Jet Airways hits 52-week low: Shares of Jet Airways touched 52-week low of Rs 303.30, down 8 percent as company offers discount on base fare on international flight tickets.
The company is offering up to 20 percent discount on base fare in premiere and economy class for travel from India to Paris, Bordeaux, Clermont-Ferrand, Lyon, Marseille, Montpellier, Nice, Nantes, Rennes, Strasbourg and Toulouse
The discount is applicable on return journeys only on flights operate by Jet Airways and its codeshare partners Air France and KLM Royal Dutch Airlines.
The discount offer is valid on tickets purchased between July 13 and July 17, 2018.
Market check: The market extends its selloff in the afternoon session on the back of selloff in pharma, metal, realty, auto, PSU banks, which were down between 1-4 percent.
The Sensex is down 201.41 points at 36340.22, and the Nifty down 82.90 points at 10936.
About 456 shares have advanced, 2056 shares declined, and 166 shares are unchanged.
Market Update: It has been a day of downtick on the indices, with Nifty trading well below 11,000-mark. Pharmaceutical names have extended their fall, with the Nifty Pharma index down 3.5 percent, while metals, PSU banks, and energy names continuing to bleed. Midcaps too have extended their fall, down 2 percent. Among stocks, shares of IDBI Bank were lower by 6 percent after LIC Board approved acquisition of major stake in the public sector lender.
Buzzing Stock: IDBI Bank share price lost 6 percent intraday on Monday after the insurance behemoth Life Insurance Corporation of India said the board approved acquisition of major stake in the public sector lender.
LIC Board nod to IDBI Bank buy: The Board of Life Insurance Corporation of India (LIC) has approved the acquisition of majority stake in IDBI Bank.
The 12-member board comprises of LIC chairman VK Sharma and its four managing directors as members.
LIC will own 51 percent in IDBI Bank after the deal and will be the bank's largest shareholder.
Insurance Regulatory and Development Authority of India has approved the deal on the condition that the life insurer will gradually bring its stake in the bank down after a few years.
The aim of the deal is to infuse capital into the bank, which is facing a severe challenge in the form of mounting bad debt.
The deal will need to be approved by the Union cabinet, capital markets regulator Securities and Exchange Board of India, and the Reserve Bank of India.
Market Update at 1: Benchmark indices have continued their downward trend, with the Nifty still trading below 11,000-mark. Selling pressure is visible among all sectoral indices, with maximum cuts among PSU banks, pharmaceuticals, metals, and energy indices. The midcaps, too, are trading weak, down 1.5 percent. DCB Bank share price plunged 11 percent after reporting weakest ever operating profit growth in last eight quarters and net interest margin at 11-year low in Q1.
Lupin gets approval from UK MHRA: The company has received approval from UK MHRA (United Kingdom's Medicines and Healthcare products Regulatory Agency) for its Goa facility. The unit was inspected by UK MHRA in March 2018 and there were no critical or major observations cited.
Suven Life Sciences secures product patents: Suven Life Sciences has secured 1 product patent from Europe and 1 product patent from South Korea corresponding to the new chemical entities for the treatment of disorders associated with Neurodegenerative diseases and patents are valid through 2033 and 2034.
At 11:16 hrs Suven Life Sciences was quoting at Rs 216.05, down Rs 1.20, or 0.55 percent on the BSE.
Result reaction: Shares of 3i Infotech touched 52-week low of Rs 3.50, falling 7 percent on the back of poor June quarter numbers.
The company's Q1 net profit was down 28 percent at Rs 6.04 crore against Rs 8.38 crore in the same quarter last fiscal.
Meanwhile, the net sales were up 1 percent to Rs 241.98 crore against Rs 239.31 crore.
The operating profit for Q1 was at Rs 27.08 crore versus Rs 28.63 crore in 01 FY2018.
Just Dial to consider buyback: Share price of Just Dial gained 2.5 percent as company is going to consider buyback of its shares.
A meeting of the board of directors of the company will be held on July 20 to consider, approve and take on record the unaudited financial results for the first quarter ended June 30, 2018 (Q1FY19).
The board will also consider allotment of equity shares of the company having a face value of Rs 10 each to certain employees of the company, upon exercise of options by such employees under the relevant employee stock option schemes.
It will also consider and approve the proposal to buyback fully paid-up equity shares of the company and matters necessary and incidental thereto.
Market Update at 10:30 am: Equity benchmarks continued to trade lower, with the Nifty hovering below 11,000-mark, while the Sensex is down below 36,500.
The Sensex is down 50.40 points or 0.14% at 36491.23, while the Nifty is down 33.10 points or 0.30% at 10985.80. The market breadth is negative as 517 shares advanced, against a decline of 1,429 shares declined, while 110 shares are unchanged.
Infosys and Asian Paints are the top gainers on both indices, while ICICI Bank, Sun Pharma, and Dr Reddy’s Labs have lost the most.
Infosys stock recovers: Infosys after opening lower recovered sharply in morning trade itself, rallying nearly 5.7 percent to hit a fresh record high of Rs 1,384.40 on Monday after the company announced bonus share issue, though earnings were mixed.
The stock price was quoting at Rs 1,382.50, up Rs 73.40, or 5.61 percent on the BSE at 10:10 hours IST.
The software services exporter started off the year 2018-19 on a mixed note as Q1 bottomline and operational numbers missed analyst estimates while revenue and FY19 guidance met expectations.
Profit for the quarter ended June 2018 degrew by 2.11 percent sequentially to Rs 3,612 crore, which was partly hit by reduction in the fair value of disposal group held for sale in respect of Panaya.
DRL falls 10%: Dr Reddy's Laboratories slipped a little over 10 percent in morning trade on Monday after the New Jersey District Court converted a temporary injunction into a preliminary injunction against the company that prevents it from launching generic Suboxone in the US market until patent litigation related to US Patent No. 9,931,305 is concluded.
Reacting to the news, Dr. Reddy’s Laboratories slipped as much as 10.7 percent in the first 15-minutes of trade. It was the top Nifty loser.
However, the drug maker on Saturday said it will appeal a decision of the US District Court of New Jersey about further sales and commercialisation of its generic Suboxone sublingual film in the US.
Market Update: After witnessing a flat opening, the market has inched lower in the first hour of trade, with the Nifty breaking 11,000-mark it achieved last week.
The Sensex is down 73.57 points or 0.20% at 36468.06, while the Nifty is down 36.10 points or 0.33% at 10982.80. The market breadth is negative as 449 shares advanced, against a decline of 977 shares, while 73 shares were unchanged.
All sectoral indices are trading in the red, with cuts visible among pharmaceutical as well as energy names. Midcaps, too, are trading in the red; the Nifty Midcap is down 1 percent.
Buzzing Stock: Shares of Tata Motors declined more than 3 percent in the opening trade on Monday as Moody has downgraded the corporate family rating of the company.
Moody's Investors Service has downgraded the corporate family rating (CFR) for Tata Motors to Ba2 from Ba1.
It has also downgraded the company's senior unsecured instrument ratings to Ba2 from Ba1.
However, the rating outlook is remain stable.
"The downgrade to Ba2 reflects our expectation of continued weakness in company's consolidated credit metrics over the next two years, led by its wholly owned subsidiary Jaguar Land Rover Automotive Plc (JLR, Ba2 stable)," said Kaustubh Chaubal, a Moody's Vice President and Senior Credit Officer.
The Sensex is down 27.62 points or 0.08% at 36514.01, while the Nifty is down 17.20 points or 0.16% at 11001.70. The market breadth is narrow as 268 shares advanced, against a decline of 170 shares, while 62 shares were unchanged.
Majority of sectoral indices are trading in the red, with maximum cuts seen in pharmaceutical names. The Nifty Midcap index is also trading over half a percent lower.
Among stocks, shares of PC Jeweller is down 25 percent after the company cancelled its buyback issue, while Tata Motors is lower by 4 percent after a Moody’s downgrade.
Rupee Opens: The Indian rupee opened marginally lower at 68.55 per dollar on Monday versus previous close 68.52.
Rupee fell on Friday, ahead of the trade balance number that was released post market hours. India’s trade deficit for June widened to the highest level driven largely by a surge in oil prices, said Motilal Oswal.
Merchandise exports rose 17.57 percent Y-o-Y in June, the trade deficit widened to USD 16.6 billion from USD 14.62 billion in May. Oil imports during April- June 2018-19 were valued at USD 34.64 billion which was 49.44 percent higher as compared to the same period last year. Merchandise exports last month rose to USD 27.7 billion from a year ago, while imports rose 21.31 percent Y-o-Y to USD 44.3 billion.
Data released by the RBI showed India’s FX reserves fell another USD 248 million to USD 405.81 billion for the week ended 6th July suggesting that the central bank continues to intervene to curtail volatility of the currency.
Market at pre-open: Pre-opening trends indicate a mixed start to the market, with the Nifty trying to hold its 11,000-mark, while the Sensex could see a positive opening.
At 09:02 hrs IST, the Sensex is up 112.44 points or 0.31% at 36654.07, and the Nifty down 33.70 points or 0.31% at 10985.20.
The market breadth, however, was positive as 2 shares advanced, against a decline of 1 share declined, while 2764 shares were unchangeD.