Sensex down over 200 points; banks drag

27 Sep 2018

Market at Close: It’s a negative close for Nifty in September series and it has ended below 11,000-mark as well. The Sensex concluded the session over 200 points lower.

There was selling across sectors, with maximum cuts visible among banks, automobile, infrastructure, metals and pharmaceuticals. Weakness in the midcaps space also weighed on benchmarks as Nifty Midcap ended over 2 percent lower.

At the close of market hours, the Sensex closed down 218.1 points or 0.6% at 36324.1, while the Nifty was lower by 76.3 points or 0.6% at 10977.5. The market breadth is negative as 767 shares advanced, against a decline of 1,793 shares, while 167 shares were unchanged.

Shares of Tata Consultancy Services (TCS), Infosys, and Bharti Infratel were the top gainers, while Yes Bank, Maruti, and Indiabulls Housing have lost the most.

SREI Infra re-affirms its sound financial standing: The company emphasised that it has been timely meeting its liability commitments to banks, financial institutions and investors. Srei including Srei Equipment Finance has repaid all its debt obligations as on date without any delay and has enough liquidity to honour all its financial obligations, company said in release.

There will not be any delay in repayment of any of our future financial obligations. As on September 26, 2018, we have investments of Rs 950 crores in liquid mutual funds apart from liquidity from collections and available bank lines, it added.

Can Fin Homes clarifies on liquidity: On BSE the company clarify that, for the short term liquidity management, the Company always maintains adequate amount of unavailed committed lines of credit from Banks and hence, the Company has never resorted to rollover of any market borrowing or, back to back borrowing to honour its payment obligations. As on date, the Company has adequate liquidity in form of sanctioned and unavailed credit lines from Banks.

Can Fin Homes was quoting at Rs 228.45, down Rs 20.40, or 8.20 percent. It has touched a 52-week low of Rs 227.00.

Buzzing: Share price of Tata Consultancy Services (TCS) rose nearly 2 percent as company completed its Rs 16,000-crore share buyback on September 21.

The Mumbai-based company had in June this year announced buyback of up to 7.61 crore equity shares from existing shareholders at a price of Rs 2,100 per equity share with the overall consideration not exceeding Rs 16,000 crore.

The tendering period for the buyback offer opened on September 6, 2018 and closed on September 21, 2018, TCS said in a regulatory filing.

Buzzing Stock: Shares of Vijaya Bank slipped more than 2 percent intraday Thursday. The board meeting of the company is scheduled to be held on September 29 to consider proposed merger of 3 PSU banks.

The meeting of the board of directors of the company is scheduled on September 29, to consider and approve the amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank.

Market Update: Weakness has resumed on the market, with Nifty breaching 11,000-mark, while the Sensex is down 170 points.

The Sensex is down 174 points or 0.4% at 36368.2, while the Nifty is lower by 60.6 points or 0.5% at 10993.2. The market breadth is negative as 748 shares advanced, against a decline of 1,547 shares, while 153 shares were unchanged.

Market Update: The benchmark indices are trading lower in the afternoon trade ahead of September F&O expiry with Nifty hovering around 11,000 level.

The Sensex is down 122.36 points at 36419.91, while Nifty is down 44.90 points at 11008.90. About 805 shares have advanced, 1472 shares declined, and 149 shares are unchanged.

Yes Bank, Sun Pharma, HDFC, ONGC and Maruti Suzuki are the top losers on the Sensex

Buzzing: Shares of Indo Amines rose 11 percent as company board approved a draft scheme of amalgamation of Core Chemicals (Mumbai) and Key Organics (a wholly owned subsidiary of the company) with the company.

The Scheme is subject to approval of the National Company Law Tribunal, Mumbai, besides other approvals as applicable, if any.

The company has terminated the MOU and acquisition of Industrial Land of Pious Engineering situated at Dombivali (East), Dist. Thane, Maharashtra for further business purpose.

BNP Paribas buys 51.45 lakh shares of DHFL: On Wednesday, BNP Paribas Arbitrage bought 51,45,821 shares of company at Rs 297.87 and Mridul Singhania bought 16,28,000 shares at Rs 307.91.

The share price tumbled 51 percent in last 5 trading session.

At 12:00 hrs Dewan Housing Finance Corporation was quoting at Rs 297.00, down Rs 8.00, or 2.62 percent.

Buzzing: Shares of Hero Motocorp added nearly 1 percent as company is going to hike prices of its motorcycles and scooters.

The company will make an upward revision in the ex-showroom prices of its motorcycles and scooters, effective October 3, 2018, as per company release.

The revision has been necessitated by the increasing commodity costs and currency depreciation, it added.

The price hike will translate to an increase of up to Rs 900, although the exact quantum of the increase will vary, basis the model and the specific market

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FOOTWEAR STOCKS RALLY AFTER IMPORT DUTY HIKE

Footwear stocks are in focus this morning as well. The likes of Bata India, Relaxo Footwear and Liberty Shoes are trading up to 5 percent higher after the government increased import duty on footwear to 25 percent from 20 percent.

TITAN SHARES SOAR 4%

Shares of Titan Company rose nearly 3 percent in the early trade on Thursday as government has not hiked the import duty on gold.

The government has hiked import duty on high-end consumer items including washing machines, air conditioner, footwear, diamonds, jet fuel, car tyres, kitchen and tableware, some plastic goods, as well as suitcases as a part of its plan to get foreign funds flowing back to India and to reduce current account deficit (CAD) as it seeks to stabilise the domestic currency.

Meanwhile, the government has kept rate unchanged on import of gold.

Market Update: Shares are trading marginally higher after seeing a negative move in the first few minutes of trade. The Nifty is trading around 11,050, while the Sensex is trading flat.

The Sensex is up 39.87 points or 0.11% at 36582.14, while the Nifty is higher by 4.00 points or 0.04% at 11057.80. The market breadth is narrow as 923 shares advanced, against a decline of 697 shares, while 68 shares were unchanged.

Asian Paints, Vedanta, Titan and UltraTech Cement were the top gainers, while Yes Bank, HDFC, Indiabulls Housing and Bajaj Finance have lost the most.

Strides Pharma falls 2%

Shares of Strides Pharma fell over 2 percent amid reports that the company has received three observations by the US FDA.

According to a report on CNBC-TV18, the company’s Bengaluru unit was inspected by the US drug regulator from August 20-24.

The observations include

Procedures for cleaning and maintenance failed to include detailed description

Controlled procedures validating manufacturing process not established

Product containers don't include testing details that need to be performed

Market Opens: Equity benchmarks gave up gains within the first minute of trade and were flat. The Nifty hovered around 11,050-mark, while the Sensex was trading around 36,500-mark.

Investors are reacting to developments around customs duty hike that the government announced late on Wednesday.

Among sectors, banks are trading in the red, while IT and pharmaceuticals are trading higher. The Nifty Midcap index is down quarter of a percent.

At 09:17 hrs IST, the Sensex is down 15.4 points or 0.04% at 36526.8, while the Nifty is down 10.3 points or 0.09% at 11043.5. The market breadth is negative as 377 shares advanced, against a decline of 416 shares, while 40 shares were unchanged.

Asian Paints, Tata Motors, GAIL and Titan are the top gainers, while HDFC, Bharti Airtel, and M&M have lost the most.

Market at pre-open: The benchmark indices are trading positive in the pre-opening trade with Nifty hovering around 11,150 level.

At 09:02 hrs IST, the Sensex is up 156.1 points at 36,698.4, and the Nifty up 92.9 points at 11,146.7.

Jet Airways fell 10 percent, while UltraTech Cement, Titan are the major gainers in the pre-opening trade.

US Fed raises interest rates: The US Federal Reserve raised interest rates on Wednesday and left its monetary policy outlook for the coming years largely unchanged amid steady economic growth and a strong job market.

In a policy statement that marked the end of the era of "accommodative" monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.0-2.25 percent.

It still foresees another rate hike in December, three more next year, and one increase in 2020.

Asia trade mixed: Global equities ran out of steam and US bond yields fell after the Federal Reserve raised interest rates as expected, sticking to its script of gradual policy tightening with forecasts of five more rate hikes by 2020.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.05 percent in early trade while Japan's Nikkei fell 0.45 percent.

US markets end lower: A rally in US equities fizzled out late on Wednesday, while the US dollar rose, after the Federal Reserve raised interest rates, as expected, and flagged the end of its "accommodative" monetary policy.

With steady economic growth and a strong job market, the Fed indicated that it still foresees another rate rise in December, three more next year, and one in 2020.

The Dow Jones Industrial Average fell 106.93 points, or 0.4 percent, to 26,385.28, the S&P 500 lost 9.59 points, or 0.33 percent, to 2,905.97 and the Nasdaq Composite dropped 17.11 points, or 0.21 percent, to 7,990.37.