D-Street ends on a negative note, Nifty holds 10,300; Tata Motors down 13%

09 Oct 2018

Market at Close: Shares resumed their downtrend after a brief pause from the selloff that was seen on Monday. The Nifty ended around 10,300, while the Sensex closed over 170 points lower.

There was large-scale selling across automobiles, energy, and FMCG names, while metals and pharmaceuticals were the top gainers. Midcaps recovered from their low points and ended 0.30 percent lower.

At the close of market hours, the Sensex closed down 174.91 points or 0.51% at 34299.47, while the Nifty ended lower by 47 points or 0.45% at 10301.00. The market breadth is negative as 1,015 shares advanced, against a decline of 1,579 shares, while 768 shares were unchanged.

Adani Ports, Vedanta and Dr Reddy’s Labs were the top gainers, while Tata Motors, Asian Paints, and Titan lost the most.

Macquarie on Reliance Industries: Research house maintained outperform call on the stock with a target at Rs 1,315 per share.

It believes that refining segment EBIT is likely to decline 30% YoY and 5% QoQ, while petrochemical segment EBIT is set to increase 45% YoY.

Market Check: Rangebound trade continue on Dalal Street with Nifty hovering around 10,350, while Sensex is trading flat in the final hour of trading on Tuesday.

At 14:40 hrs IST, the Sensex is down 5.35 points at 34,469.03, while Nifty is up 6.70 points at 10354.70. About 973 shares have advanced, 1493 shares declined, and 889 shares are unchanged.

Among the sectors, metal index has outshine the other sectoral indices with over 2 percent gain, while on the other hand auto index fell more than 2 percent, followed by FMCG and PSU bank index.

Gold Update: Gold prices fell by Rs 220 to Rs 31,650 per 10 gram amid weakening global trend and easing demand from local jewellers at the bullion market Tuesday.

Silver, too, remained weak and declined by Rs 50 per kg to Rs 39,250 per kg due to reduced offtake by industrial units and coin makers, reported PTI.

KEC International bags order: The company secured new turnkey order of Rs 1,496 crore in its transmission & distribution business in Bangladesh.

BHEL wins Rs 2,900 crore: Bharat Heavy Electricals (BHEL) has bagged four orders for emission control equipment from NTPC ltd. Valued at about Rs 2,900 crore, these orders involve supply and installation of flue gas desulphurization (FGD) systems for control of SOx emissions at NTPC's 3x660 MW North Karanpura, 2x500 MW Mauda Stage-I, 3x660 MW Barh Stage-I and 2x660 MW Barh Stage-II power projects.

Market Update: Benchmark indices are trading flat in the late morning trade with Sensex hovering around 34,500 level.

At 11:46 hrs IST, the Sensex is up 6.91 points at 34481.29, while Nifty is down 9.30 points at 10338.70. About 923 shares have advanced, 1291 shares declined, and 1126 shares are unchanged.

HDFC Bank, Reliance Industries, HDFC, TCS and Kotak Mahindra Bank are the positive contributors to the Sensex.

Vinay Rajani recommends sell on Chennai Petroleum Corporation: Share price has formed a bearish head and shoulder pattern on the weekly charts projecting a healthy downside in the stock from current levels.

The stock is placed below all important moving average support. Lower tops and lower bottoms on the daily are seen on weekly charts.

Considering the technical evidence discussed above, we recommend selling the stock at CMP for the target of Rs 205 and keeping a stop loss at Rs 250 on a closing basis.

Market Update: Equity benchmarks have extended losses now, with the Sensex trading down over 100 points. The Nifty is around 10,300-mark.

The Sensex is down 106.71 points or 0.31% at 34367.67, while the Nifty is down 36.10 points or 0.35% at 10311.90. The market breadth is narrow as 1,028 shares advanced, against a decline of 992 shares, while 1,312 shares were unchanged.

Yes Bank and Adani Ports are the top gainers, while Tata Motors, Eicher Motors and Asian Paints have lost the most.

HOUSING FINANCE COMPANIES REACT TO NHB INCREASING REFINANCING LIMIT

Housing finance companies are in focus after National Housing Bank (NHB) increased the refinance limit for the period between July 2018 and June 2019 to Rs 30,000 crore from Rs 24,000 crore for eligible institutions.

"Keeping in view the current scenario, NHB has decided to increase the refinance limit to Rs 30,000 crore. Now, eligible housing finance companies & other entities will have increased availability of funds," the finance ministry said in a press release.

RELIANCE HOME FINANCE IN FOCUS

CARE Ratings has revised rating by one notch to AA for its long-term debt programme, market linked debentures, subordinated debt and non-convertible debentures (NCDs) public issue and NCO issue and to AA- for upper Tier-II bonds, representatives of the firm told exchanges in a filing. This, it said, is due to revision of rating of the parent company, Reliance Capital.

ABAN OFFSHORE ARM TO ACQUIRE TWO BLOCKS IN UK NORTH SEA

Aban Offshore’s subsidiary will be acquiring two blocks in the UK North Sea for non-cash consideration of USD 75 million.

“The consideration shall be set-off against amounts due from certain customers to another wholly owned step-down subsidiary of the company for drilling services provided,” the company said in a filing to the exchanges.

Shares of the firm are higher by 3.5 percent on the BSE.

Buzzing stock: Shares of Britannia Industries gained nearly 3 percent intraday Tuesday as company Board approved issue debentures by way of bonus.

The company board in its meeting held on October 7 approved the Scheme of arrangement of company and their respective shareholders, for issue of secured, non-convertible, redeemable, fully paid-up debentures by way of bonus.

IMF downgrades outlook for world economy to 3.7% growth

Global growth has plateaued at 3.7 percent, the International Monetary Fund (IMF) said on Tuesday, with its chief economist warning the world that there are clouds on the horizon and growth has proven to be less balanced than hoped.

"Last April, the world economy's broad-based momentum led us to project a 3.9 percent growth rate for both this year and next. Considering developments since then, however, that number appears over-optimistic: rather than rising, growth has plateaued at 3.7 percent," IMF Chief Economist Maurice Obstfeld said as the world body released the World Economic Outlook, its annual flagship report. Read the full story here.

Market Update: Indices are trading flat after witnessing a higher opening. The Nifty is trading around 10,350-mark, while the Sensex is flat.

The Sensex is up 21.22 points or 0.06% at 34495.60, while the Nifty is higher by 3 points or 0.03% at 10351.00. The market breadth is narrow as 1,004 shares advanced, against a decline of 687 shares, while 1,640 shares were unchanged.

Yes Bank and HDFC are the top gainers, while Tata Motors, Asian Paints, and BPCL have lost the most.

TATA MOTORS NEAR 7-YEAR LOW ON WEAK JLR SALES

Tata Motors share price corrected sharply on Tuesday, hitting nearly 7-year low on consistently weak performance from its luxury car brand Jaguar Land Rover.

The stock went down almost near Rs 200 levels at Rs 200.80, the lowest level since January 11, 2012. At 09:34 hours IST, the stock price was quoting at Rs 204.10, down Rs 8.65, or 4.07 percent on the BSE.

JLR on Monday reported total retail sales of 57,114 vehicles in September 2018, down 12.3 percent year-on-year, hit by lower demand in China, the company said.

JSW Steel rises 2%: Shares of JSW Steel are higher by 2 percent in morning trade as investors were upbeat about ratings upgrade by CARE Ratings to its bank facilities, non-convertible debentures and commercial papers.

“CARE has upgraded the long-term rating to "CARE AA; (Stable)" from "CARE AA-; (Stable)" while it has reaffirmed short term ratings to CARE Al+, for bank facilities, non-convertible debenture programme and commercial paper programme of the company,” the firm told exchanges in a filing.

Market opens: It’s a good start on the market on Monday, with the Nifty opening above 10,350, while the Sensex is up around 100 points.

Among sectors, pharma and energy names are gaining the most, while financials are trading in the green as well. There are cuts visible in the automobile segment, with the Nifty Auto losing half a percent. The midcap index is up over one-third of a percent.

The Sensex is up 89.48 points or 0.26% at 34563.86, while the Nifty is higher by 33.10 points or 0.32% at 10381.10. The market breadth is positive as 328 shares advanced, against a decline of 129 shares, while 2,870 shares were unchanged.

JMC Projects bags order: The company secured new orders of Rs 514 crore. It includes two orders totalling Rs 236 crore for construction of educational institutes in Andhra Pradesh. Civil construction and related MEP works for residential building in Telangana for Rs141 crore and civil works for a steel plant in Orissa for Rs 137 crore.

Crude oil update: Oil prices held little changed on Tuesday, as more evidence emerged that crude exports from Iran are declining in the run-up to the reimposition of US sanctions, while a hurricane moved across the Gulf of Mexico.

Brent crude was down 7 cents at USD 83.84 a barrel. On Monday, Brent fell to a low of USD 82.66, but mostly recovered as investors bet China's economic stimulus would boost crude demand. Brent hit a four-year high of USD 86.74 last week, reported Reuters.

Rupee ends at fresh all-time closing low on Monday: The rupee slumped by 30 paise to finish at a fresh lifetime low of 74.06 against the US dollar on October 8 amid strengthening of the greenback and steady capital outflows.

The rupee had opened lower by 14 paisa against October 5 closing of 73.76 in early trade as the US dollar strength against major global currencies weighed on the rupee sentiment.

Asia trades near to 17-month low: Asian shares hit 17-month lows on Tuesday as investors fretted about everything from the Chinese economy, to trade wars, higher US bond yields and political dysfunction in Europe.

MSCI's broadest index of Asia-Pacific shares outside Japan eased another 0.15 percent after ending Monday at its lowest point since May last year.

Japan's Nikkei fell 1.1 percent as it resumed from a one-day holiday, hurt in part by a rise in the safe-harbour yen.

Wall Street ends lower on Monday: The tech-heavy Nasdaq fell on Monday for the third straight day as a sell-off in Chinese markets sparked concerns about slowing global economic growth, though the S&P 500 pared losses to end nearly flat.

The Dow Jones Industrial Average rose 39.73 points, or 0.15 percent, to 26,486.78, the S&P 500 lost 1.14 points, or 0.04 percent, to 2,884.43 and the Nasdaq Composite dropped 52.50 points, or 0.67 percent, to 7,735.95, reported Reuters.