Sensex ends over 200 points lower, Nifty gives up 11,400; IT, pharma gain

CNBC

Market at Close: Looks like equities had a case of Monday blues as benchmarks ended the day on a lower note, courtesy a fall in banks as well as a weak rupee. The Indian currency fell on the back of a sharp drop in Turkish lira against the US dollar. As a result, it had a negative impact on other emerging market currencies and that lead to a fall in the rupee as well on fears of a spill-over effect. 

The Nifty managed to give up 11,400-mark, while the Sensex fell over half a percent.
Following results of State Bank of India (SBI), banking stocks fell sharply on Monday, continuing its nervous momentum from Friday. The Bank Nifty ended over a percent lower, while the Nifty PSU bank index fell over 2.5 percent. What aided to the negative sentiment was a weak phase in midcaps too. The Nifty midcap index fell almost a percent. Among other losers were metals, auto and energy names. 
The only sectors to shine during the day’s trade were the traditional defensives. Weak rupee ensured a good boost to information technology (IT) stocks, while pharmaceuticals too had a good day of trade, led by a surge in Sun Pharmaceuticals. 
At the close of market hours, Sensex closed down 224.33 points or 0.59% at 37644.90, while the Nifty fell 73.70 points or 0.64% at 11355.80. The market breadth is negative as 963 shares advanced, against a decline of 1,716 shares, while 161 shares were unchanged.
Among stocks, Infosys, Sun Pharma, GAIL and Tech Mahindra were the top gainers, while Yes Bank, Vedanta, BPCL and HPCL lost the most among both indices.   
Market Update: A recovery in midcaps and further strengthening in IT and pharma has helped equity benchmarks cut a chunk of its losses. The Sensex is down over 100 points, while the Nifty is around 11,400-mark. 
The Sensex is down 145.41 points or 0.38% at 37723.82, while the Nifty is down 45.50 points or 0.40% at 11384.00. The market breadth is negative as 976 shares advanced, against a decline of 1,558 shares, while 152 shares were unchanged.
Banks continue to be the top losers, dragging the market lower, along with metals, auto and energy names. Both Nifty pharma and IT are up over a percent.  
Deutsche Bank on Voltas: Deutsche Bank has maintained hold on Voltas and raised target to Rs 500 from Rs 490 per share.
This is a strong outcome in a tough environment. Its projects business is strong, said Deutsche Bank.
Worst is not over for cooling business and expect margin to be decline, while cooling business valuations look high, but at discount to peers, research house further added.
At 13:39 hrs Voltas was quoting at Rs 622.95, up Rs 2.80, or 0.45 percent. 
Indoco Remedies Q1 result: The company has minimised its losses in the quarter ended June 2018. It has reported Q1FY19 net loss was at Rs 12 crore versus loss of Rs 21.7 crore, in a year ago period.
Revenue of the company was up 4 percent at Rs 212.5 crore against Rs 204.2 crore. Operating profit or EBITDA was at Rs 6.5 crore against EBITDA loss of Rs 3.5 crore.
At 13:23 hrs Indoco Remedies was quoting at Rs 192.25, up Rs 4.30, or 2.29 percent.
Shibulal son-in-law sells Infosys shares: Gaurav Manchanda, the son-in-law of Infosys co-founder SD Shibulal, sold small stake in the country's second largest software services company.
The company informed exchanges that Manchanda sold more than 8.05 lakh equity shares through open market transaction between August 8 and August 10.
He offloaded shares, which is 0.04 percent of his total stake in the company, through three different transactions.
He sold 2.8 lakh shares at Rs 1,362.38 per share, 3 lakh shares at Rs 1,382.48 and 2.23 lakh shares at Rs 1,375.33 per share.
Gaurav Manchanda held 85,73,973 equity shares or 0.39 percent stake in Infosys as of June 2018.
Infosys co-founder SD Shibulal along with daughter Shruti Shibulal had gifted their shares worth over Rs 2,327 crore in the company to family members in February 2018.
Rupee Outlook: Emerging market currencies have declined sharply as Turkish lira has fallen to all time low level after US president Donald Trump imposed sanctions and tariffs on Turkey.
"The crisis is unlikely to resolve anytime soon. An absence of aggressive intervention by the RBI has also hurt the rupee. Market is nervous ahead of India’s CPI data due later today," Rushabh Maru - Research Analyst , Anand Rathi Shares and Stock Brokers said.
He further said the dollar has strengthened to multi-month high on expectations of aggressive interest rate hikes by the Federal Reserve in coming months as the US economy is experiencing strong growth momentum. Hence, due to all these factors, the rupee has declined to all time low level today, he added.
Brokerages on GAIL Q1: GAIL’s stock rose a little over 4 percent on Monday morning as investors cheered its good results for the quarter.
The stock touched an intraday high of Rs 378.60 and an intraday low of Rs 362.80.
Brokerage house JPMorgan has maintained a neutral stance on the stock and raised target to Rs 360 from Rs 330. It observed that strong crude drove record marketing EBITDA. Potential near-term catalyst is tariff hikes
CLSA has maintained a buy call on the stock and raised target to Rs 435 from Rs 405. It said that the June quarter was a beat on all fronts. US LNG drives sharply higher gas trading profits and lower operating expenditure. All segments outperformed other than gas transmission, it added.
Market Update: Banks have continued to be weak along with auto, energy and metal names. Traditional defensives IT and pharma are trading in the green. 
Equity benchmarks have continued to trade in the red on Monday morning. The Sensex is down over 250 points, while the Nifty is hovering around 11,350-mark. 
At 10:29 hrs IST, the Sensex is down 261.15 points or 0.69% at 37608.08, and the Nifty down 75.00 points or 0.66% at 11354.50. The market breadth is negative as 721 shares advanced, against a decline of 1,365 shares, while 106 shares were unchanged.
Banks have continued to be weak along with auto, energy and metal names. Traditional defensives IT and pharma are trading in the green.  
Brokerages on HDFC Bank: Shares of HDFC Bank were down around 2 percent on Monday morning, following an abrupt resignation by Deputy MD Paresh Sukthankar last week.
Global research firm Nomura believes that the exit is a small, near-term negative and that the potential MD&CEO candidate could be an outsider now. It also highlighted that timing of this & notice period of 3 months matches with change in guard at Axis Bank. It reiterated that the speculation in market is also pointing towards that. Should this event take place, there could a rerating on Axis Bank.
Meanwhile, Citi said that some investors could show concern as the development has come around the QIP issue. Puri had indicated in analyst meet in 2018 that external & internal candidates will be considered, the report highlighted.
Macquarie, on the other hand, said that the early resignation has come in as a surprise. At the margin this development is negative, it said, adding that the bank will manage the challenge well. It also believes that Sukthankar will be a good fit for Axis Bank.
Buzzing: Shares of NBCC fell 6.2 percent in the early trade on Monday despite company reported better numbers in the quarter ended June 2018.
The company's Q1 consolidated net profit was up 23.9 percent at Rs 73.2 crore versus Rs 59.1 crore in a year ago period.
Revenue was up 19.1 percent at Rs 1,844 crore versus Rs 1,548.9 crore.
The company has received an order from Central Board of Secondary Education (CBSE) for construction of CBSE, Integrated Office Complex at Sector-23, Dwarka, New Delhi amounting to Rs 150 crore. 
Market Opens: Bears took the control on the D-street as the benchmark indices opened lower on Monday morning, with the Nifty trading around 11,350, while the Sensex trading around 37,600.
The Sensex is down 268.42 points at 37600.81, and the Nifty down 73.80 points at 11355.70. About 347 shares have advanced, 846 shares declined, and 71 shares are unchanged. 
Nifty Bank down 1 percent as banking stocks were under pressure post the rupee touched a record low of 69.49 in the opening trade on Monday. 
SBI, Vedanta, Indiabulls Housing, Hindalco, UPL, Bharti Airtel, Union Bank, NBCC, Jet Airways, Tata Motors, Nalco are among the major losers on indices, while Dr Reddy's Lab, Sun Pharma, TCS, Corporation Bank are trading with marginal gains.  
Rupee opens at record low: The Indian rupee slipped to a record low as it fell 66 paise in the early trade on Monday.
It has opened at 69.47 per dollar on Monday versus 68.83 Friday.
The dollar-rupee August contract on the NSE was at 68.99 in the previous session. August contract open interest declined 1.86% in the previous day, said ICICIdirect.
We expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions, it added.
Market at pre-open: Equity benchmark indices have a negative start in the pre-opening trade on the first trading day of the week, with Nifty trading below 11,400 mark.
At 09:06 hrs IST, the Sensex is down 153.75 points or 0.41% at 37715.48, and the Nifty down 48.40 points or 0.42% at 11381.10.