Sensex ends 274 points lower, Nifty holds 10,600; Dr Reddy’s up 6%

21 Nov 2018

Market Close: Equity benchmarks continued with their downtrend for second consecutive day, in tandem with global markets, with Nifty holding 10,600.

A global sell-off mirrored in the Indian markets as well, while a recovery in crude oil prices weighed on benchmarks.

The Nifty IT index was the big loser along with energy stocks as well. Meanwhile, pharmaceuticals and PSU banks were the big gainers. In the broader markets, Nifty Midcap index rose over half a percent.

At the close of market hours, the Sensex was down 274.71 points or 0.77% at 35199.80, while the Nifty ended down 56.20 points or 0.53% at 10600.00. The market breadth was negative as 1,256 shares advanced, against a decline of 1,305 shares, while 136 shares were unchanged.

Yes Bank, Axis Bank, and Dr Reddy’s were the big gainers, while TCS and Infosys lost the most.

Earnings Update

DHFL's gross non-performing assets as a percentage of gross advances increased to 0.96 percent in Q2FY19 against 0.93 percent in previous quarter.

Net interest margin in second quarter contracted to 3.15 percent against 3.44 percent reported in June quarter.

Assets under management at the end of September quarter stood at Rs 1.3 lakh crore, which increased 38 percent year-on-year and 7.6 percent sequentially.

Company's disbursements at Rs 13,870 crore increased 39 percent compared to year-ago and 2.1 percent quarter-on-quarter.

Europe Update

European stocks were higher, clawing their way back from the sharp losses sustained in the previous session.

France's CAC and Britain's FTSE were up 0.7 percent each while Germany's DAX was up 1 percent.

Market Update:

Benchmark indices continued to trade lower in afternoon with the Sensex falling 199.90 points to 35,274.61, dragged by technology stocks and correction in global peers on growth concerns.

The 50-share NSE Nifty clawed back above 10,600 levels, but still down 39.60 points at 10,616.60 amid balanced market breadth.

About 1,213 shares declined against 1,195 advancing shares on the BSE.

Earnings Update

Dewan Housing Finance Corporation has reported a massive 52.55 percent year-on-year growth in second quarter profit to Rs 438.7 crore despite sharp rise in provisions and liquidity crisis.

Revenue from operations during the quarter grew by 33.8 percent to Rs 3,515.7 crore compared to Rs 2,627.9 crore in corresponding period last fiscal.

DHFL said provision for expected credit loss increased 46.6 percent sequentially and 20 percent year-on-year to Rs 132.74 crore in the quarter ended September 2018.

Govt to ready structure for debt ETFs by March 2019.

The structure of debt exchange-traded funds, which were announced by Finance Minister Arun Jaitley in the Union Budget for FY19, will be ready by the end of this financial year, a source from the Finance Ministry said.

"We have appointed transactional and legal advisor. Once we receive bids from asset management companies (AMCs), further details of the product will be worked out. It will be ready to be launched by March 2019," the source told Moneycontrol.

Market Update:

Benchmark indices extended losses with the Nifty breaking 10,600 levels, which is technically crucial level for bulls.

Technology stocks hit the most with the Nifty IT index falling 3 percent. IT majors Infosys, TCS, Mindtree and Tech Mahindra slipped over 3 percent.

The 30-share BSE Sensex dropped 251.26 points to 35,223.25 and the 50-share NSE Nifty declined 63.70 points to 10,592.50.

Nomura Upgrades CONCOR, Raises Target

Japanese brokerage firm Nomura has upgraded its rating to buy from neutral for Container Corporation of India and also increased target price to Rs 800 from Rs 711 earlier.

It feels company's margin is stabilising and volume outlook is improving.

The research house raised EPS estimates for FY19 by 2 percent on better Q2 EBITDA margin, but lower FY20 EPS estimates by 2 percent.

Loss of share to roadways, delay in commissioning of DFC (Dedicated Freight Corridor) are key downside risks, Nomura feels.

Citi Cuts Sun TV Network's Target Price

Citi maintained buy call on Sun TV Network but slashed target price to Rs 800 from Rs 830 earlier.

The global research house raised its FY19 estimates by 2 percent but lowered FY20-21 estimates by 4 percent given various investments.

Sun's business is steady as earnings are re-based, up in FY19 due to domestic subscription revenue and IPL.

Oil Prices Claw Back After 6% Plunge

Oil prices recovered some of the previous day's over 6 percent plunge, lifted by a report of an unexpected decline in US commercial crude inventories as well as record Indian crude imports.

But investors remained on edge, with the International Energy Agency (IEA) warning of unprecedented uncertainty in oil markets due to a difficult economic environment and political risk.

International Brent crude oil futures were at $63.38 per barrel, up 1.36 percent from their last close. US West Texas Intermediate (WTI) crude futures, were up 1.3 percent, at $54.13 a barrel. Source: Reuters.

Market Update: Indices are seeing volatile trade on Wednesday morning.

The Sensex is down 133.03 points or 0.38% at 35341.48, and the Nifty down 29.70 points or 0.28% at 10626.50. The market breadth is narrow as 813 shares advanced, against a decline of 580 shares, while 66 shares were unchanged.

Asian Paints, Yes Bank, Dr Reddy’s and HPCL are the top gainers, while Infosys and TCS lost the most.

Market Update: Equity benchmarks have cut all of their losses, on the back of a recovery in financials, has helped indices turn green. The Nifty is well above 10,650-mark.

The Sensex is up 9.06 points or 0.03% at 35483.57, and the Nifty up 13.40 points or 0.13% at 10669.60. The market breath is positive as 734 shares advanced, against a decline of 414 shares, while 51 shares were unchanged.

Shares of Yes Bank, Asian Paints, HPCL and Dr Reddy’s are the top gainers, while Infosys and TCS have lost the most.

Market opens: Equity benchmarks have started lower, with the Nifty trading above 10,650-mark.

Automobile, energy, and pharmaceuticals are the top gainers, while metals have extended their fall from Tuesday.

In the broader markets, the Nifty Midcap is down one-tenth of a percent.

The Sensex is down 49.91 points or 0.14% at 35424.60, while the Nifty is higher by 5.70 points or 0.05% at 10661.90. The market breadth is positive as 276 shares advanced, against a decline of 112 shares, while 30 shares were unchanged.

Yes Bank, Asian Paints, Dr Reddy’s and HPCL are the top gainers, while TCS and Infosys have gained the most.

Market opens: Equity benchmarks are off to a good start in the pre-opening trade. The Nifty is above 10,700-mark.

At 09:01 hrs IST, the Sensex is up 113.60 points or 0.32% at 35588.11, and the Nifty up 46.50 points or 0.44% at 10702.70.

Shares of Dr Reddy’s Laboratories are up 10 percent in pre-opening.

OIL PRICES UPDATE: Oil prices tumbled more than 6 percent on Tuesday in heavy trading volume, with US crude diving to its lowest level in more than a year, caught in a broader Wall Street selloff fed by mounting concerns about a slowdown in global economic growth.

US West Texas Intermediate (WTI) crude futures ended the session down $3.77, or 6.6 percent, at $53.43 per barrel. The contract fell as much as 7.7 percent during the session to touch $52.77 a barrel, the lowest since October 2017.

More than 946,000 front-month WTI contracts changed hands, exceeding the daily average over the last 10 months and the second-highest daily volume since June, according to Refinitiv data.