Sensex ends marginally lower, Nifty holds 11,900; Indiabulls Housing gains 11%

13 Jun 2019

Market Close: Benchmark indices ended mixed but off day's low in the volatile session on June 13 with Nifty holds above 11,900 level.

At close, the Sensex was down 15.45 points at 39,741.36, while Nifty was up 7.80 points at 11,914.00. About 916 shares have advanced, 1590 shares declined, and 155 shares are unchanged.

Indiabulls Housing, Zee Entertainment, BPCL, Grasim Industries and Power Grid were among major gainers on the Nifty, while losers were Yes Bank, IndusInd Bank, Infosys, IOC and UPL.

Among the sectors, selling was seen in the IT, metal, pharma, PSU bank and auto.

Crude Update: Oil prices jumped as much as 4% on Thursday after a suspected attack on two tankers in the Gulf of Oman near Iran and the Strait of Hormuz, through which a fifth of global oil consumption passes.

Market Update

The Sensex fell 152.80 points to 39,604.01 and the Nifty50 slipped 45.40 points to 11,860.80.

The market breadth was also in favour of bears as about three shares declined for every share rising on the BSE.

Market Update: The benchmark indices are trading at day's low level with Nifty below 11,850.

The Sensex is down 240.21 points at 39,516.60, while Nifty is down 68.40 points at 11,837.80. About 529 shares have advanced, 1473 shares declined, and 78 shares are unchanged.

NMDC in Focus

Shares fell more than 5 percent as company's operations in Chhattisgarh mines have been shut for past couple of days.

Chhattisgarh mines contributed 70 percent to NMDC's sales in FY19.

Yes Bank, IndusInd Bank Plunge

Yes Bank shares plunged 9 percent and IndusInd Bank tanked 6 percent intraday after global brokerage house UBS slashed price target sharply by 47 percent and 18 percent respectively, citing weak earnings going ahead.

UBS downgraded IndusInd Bank to sell and cut price target to Rs 1,400 from Rs 1,700 earlier while in case of Yes Bank, the brokerage maintained sell rating and slashed target to Rs 90 from Rs 170 apiece, but favoured Axis Bank & ICICI Bank.

Market Update: Benchmark indices extended the morning losses with Nifty slipped below 11,850 mark.

At 10:03 hrs IST, the Sensex is down 193.99 points or 0.49% at 39562.82, and the Nifty down 59.70 points or 0.50% at 11846.50. About 526 shares have advanced, 1091 shares declined, and 65 shares are unchanged.

Buzzing: Shares of Tiger Logistics rose 3 percent in the early trade on Thursday as company bagged contract for handling the export logistics.

Crude Update: Oil prices steadied on Thursday, after slumping as much as 4% in the previous session to nearly five-month lows on the back of a further buildup in US crude stockpiles and worries about lower demand growth.

Market Opens: Indian indices opened on negative note on June 13 with Nifty below 11,900 level.

The Sensex is down 130.34 points at 39,626.47, while Nifty is down 39.70 points at 11,866.50. About 224 shares have advanced, 385 shares declined, and 34 shares are unchanged.

DHFL, Jet Airways, Indiabulls Housing, Infosys, HCL Tech, Yes Bank, Zee Entertainment, TCS, Tech Mahindra, Tata Motors, ONGC, Grasim, Hero Motocorp, Britannia and HUL are among major losers on the indices, while gainers are BPCL, IOC, HPCL, Asian Paints, Berger Paints and Kansai Nerolac.

All the sectoral indices are trading lower led by IT, metal, infra, FMCG, bank and auto.

Rupee Opens: The Indian rupee opened flat at 69.34 per dollar on Thursday against previous close 69.34.

Market at pre-open: Benchmark indices are trading flat in the pre-opening session with Nifty below 11,900.

At 09:01 hrs IST, the Sensex is down 9.62 points or 0.02% at 39747.19, and the Nifty down 32.70 points or 0.27% at 11873.50.

Morgan Stanley on Avenue Supermarts

Underweight Call, Target At Rs 1,120 per share

As Per DMart, price competition within industry has increased in last 18-24 months

Price differential between DMart & the competition has diminished

Rising competition may blunt DMart's first-mover advantage

In our base case, we assume 12% SSSG for FY20

Deutsche Bank on cement companies

Q1 shaping up to be a strong quarter led by better pricing

UltraTech & ACC are our top sector picks

Continue to prefer North & Central over South & East India

Risk of government intervention raising concerns on pricing

Deutsche Bank on Ceat

Hold rating, target at Rs 1,050 per share

Near-term demand outlook remains muted

Nomura on Ambuja Cements

Downgrade to neutral from buy, target cut to Rs 240 from Rs 295 per share

May see lowest volume/earnings growth among large cap peers

Nomura on Shree Cement

Downgrade to neutral from buy, target raised to Rs 21,500 from Rs 18,000 per share

Earnings outlook good, but valuations are becoming expensive

Nomura on ACC

Downgrade to neutral from buy, target raised to Rs 1,750 from Rs 1,700 per share

With capacity utilisations at 90%, cycle upside benefits seem limited

See 27% earnings CAGR over 2 years, but may be at risk if price increase is lower

Nomura on Macro Data

CPI inflation of 3.05% broadly in-line with expectations

Food inflation unsurprisingly picked up, increasing to 1.8%

Core inflation eased as expected to 4.1% from an upwardly revised 4.7% in April

IIP growth improved to 3.4% YoY in April, much better than expected

Expect headline inflation to average 3.5% in H2

See 25 bps rate cut in August on below-target inflation & likely growth disappointment

Deutsche Bank on Macro Data

May CPI in-line, April IIP better than expected

More rate cuts by monetary policy committee likely

Forecasting CPI inflation to be in the range of 3.1-3.3% through June-September

While April IIP data is encouraging, overall growth momentum remains weak

Expect one more 25 bps rate cut in August/October policy

Morgan Stanley on Macro Data

IIP reading improved to six-month high in April

Broad-based acceleration in sector wise classification

Infrastructure & construction production disappointed

Barclays on Macro Data

Core inflation moves down, we lower our FY19-20 CPI forecast

Uptick in May CPI print driven by a rise in food prices & adverse base effects

Average inflation in Q2CY19 so far stands at 3.02%

Lower FY20 CPI forecast to 3.7% from 4.1% previously

Another 25 bps repo rate cut in August is our baseline forecast

Deutsche Bank on insurance companies

May was another month of strong growth for private sector; mkt share loss is optical

Do not expect private sector to sustain the high growth momentum of first 2 months

SBI Life & HDFC Life post strong growth; ICICI Prudential sees mixed growth

SGX Nifty: Trends on SGX Nifty indicate a negative opening for the broader indices in India, a fall of 26.50 points or 0.22 percent. Nifty futures were trading around 11,899-level on the Singaporean Exchange.

US markets end lower: Wall Street ended down slightly on Wednesday, with bank stocks declining as prospects of a US interest rate cut rose and energy shares tumbling along with oil prices.

Asian markets trade lower: Asian stocks stuttered on Thursday, dogged by the uncertainty over an intractable US-China trade dispute, while oil prices flirted with five-month lows thanks to higher U.S. crude inventories and a bleaker demand outlook.