Indices snap 4-day losing streak, Sensex gains 85 points; banks, IT stocks lead

18 Jun 2019

Market Closing

Benchmark indices ended volatile session marginally higher and snapped four-day losing streak, driven by select banks and IT stocks.

The BSE Sensex rose 85.55 points to 39,046.34 and the Nifty50 gained 19.30 points at 11,691.50. The market breadth was in favour bears as about 1,546 shares declined against 964 advancing shares on the BSE.

ICICI Bank, Infosys, HCL Technologies, TCS, Vedanta, Coal India, Power Grid, Ultratech Cement and BPCL were gainers among Nifty50 stocks.

Indiabulls Housing Finance fell 7 percent. Maruti Suzuki, Hindalco, Sun Pharma, Axis Bank and HDFC were down 1-2 percent.

Jet Airways plunged over 40 percent after landing in bankruptcy court.

Reliance Infrastructure, Reliance Capital, Jain Irrigation, Kaveri Seeds, IRB Infrastructure and Arvind were down 5-20 percent.

Praj Industries, SRF, Shriram Transport, Varun Beverages, LG Balkrishnan, IOL Chemicals gained 3-7 percent.

May Aviation Data

Domestic passenger growth was at 2.96 percent YoY with IndiGo market share dipping at 49 percent against 49.9 percent MoM but SpiceJet market share increased to 14.8 percent versus 13.1 percent and GoAir to 11.1 percent versus 10.8 percent MoM.

Expert View on HDFC AMC-Essel Group Deal

HDFC AMC fell over 6 percent intraday as it offered exit to some investors of FMPs by transferring their Rs 500 Crs exposure on to its own books.

"This was a sentimentally bold move by HDFC AMC as investors were worried about their investments in the midst of this liquidity crises. However, investors should be aware that this is a one-off deal inked with Essel and there is always an implied risk with investments where the fund cannot always be the white-knight," Umesh Mehta, Head of Research at SAMCO Securities told Moneycontrol.

However, HDFC AMC has taken a big risk as they have set a trend of assuming credit risks which could turn out to be dangerous in the long term, as this will set expectations for such bailouts in the future which is bad for the investors of HDFC AMC, he said.

Crude Update: Oil prices fell for a second day on Tuesday on signs that global economic growth is being hit by the US-China trade war, although losses were limited by tensions in the Middle East after last week's tanker attacks.

Rupee Update: The Indian rupee erased all its morning gains but trading marginally higher by 5 paise at 69.85 per dollar versus previous close 69.90.

Market Update: Benchmark indices are trading higher in the afternoon trade on June 18.

At 12:22 hrs IST, the Sensex is up 138.57 points or 0.36% at 39,099.36, and the Nifty up 36.60 points or 0.31% at 11,708.80. About 1007 shares have advanced, 1077 shares declined, and 111 shares are unchanged.

Gold Update: Gold prices edged higher on Tuesday as the dollar pulled back from multi-week highs ahead of the US Federal Reserve's two-day monetary policy meeting.

Dabur Shares Plunge

Goldman downgraded Dabur India to sell with a target price of Rs 334, implying 16.66 percent potential downside from current levels as key segments seeing competition is main reason to sell.

"Juices, Hair Care & Oral Care are seeing heightened competition. We see resurging of price-led competition in the low-unit hair oil packs," the brokerage said, adding oral care is seeing a resurgence of competition from Colgate.

Goldman sees challenges to consumption growth due to slowdown in agri and rural wages. Dabur has amongst the highest exposure to rural India for its domestic business.

Market update: Indian indices erased some of its early gains but trading marginally higher with Sensex holding above 39,000.

At 09:52 hrs IST, the Sensex is up 50.50 points or 0.13% at 39011.29, and the Nifty up 6.30 points or 0.05% at 11678.50. About 709 shares have advanced, 736 shares declined, and 81 shares are unchanged.

Crude Update: Oil prices steadied on Tuesday, caught between rising tensions in the Middle East and signs that economic growth is being hit by trade tensions between the United States and China.

Buzzing: IndiGo operator InterGlobe Aviation shares gained 2 percent after company placed orders worth $20 billion for LEAP-1A engines.

Market Opens: It is a firm opening for the benchmark indices on June 18 with Nifty around 11,700.

At 09:17 hrs IST, the Sensex is up 114.52 points at 39,075.31, while Nifty is up 33.80 points at 11706. About 403 shares have advanced, 226 shares declined, and 25 shares are unchanged.

IndusInd Bank, Axis Bank, ITC, Maruti Suzuki, Tata Motors, Tata Steel, Zee Entertainment are some of the major gainers on the indices, while losers are SBI, Yes Bank, Indiabulls Housing, HUL and ONGC.

Among the sectors, except FMCG all other indices are trading in the green led by metal, pharma, infra, auto and bank.

Market at pre-open: Indian indices are trading firm in the pre-opening session on June 18.

At 09:02 hrs IST, the Sensex is up 180.85 points or 0.46% at 39141.64, and the Nifty up 29.10 points or 0.25% at 11701.30.

Citi on Bharti Airtel

Buy rating, target raised to Rs 405 from Rs 370 per share

Increase FY20-22 EBITDA estimate by 3-4%

Buy rating is based on its relatively healthier B/S than Vodafone Idea

Citi on Piramal Enterprises

Neutral call, target at Rs 2,640 per share

Proceeds from Shriram stake sale could be used to capitalise lending business

Proceeds from Shriram stake sale may be used to support organic growth

Transaction does not remove possibility of merger of Shriram companies

Credit Suisse on IndiGo

Maintain outperform, target raised to Rs 1,900 from Rs 1,800 per share

Yield spike almost gone; positive on companies positioning, sector & modest competition

Citi on Realty Companies

Residential demand continues to see gradual recovery

New launches seems to bottom out

Prices remains steady in residential space

Commercial demand showing some weakness

Phoenix Mills & Oberoi Realty are our top picks given healthy balance sheet

Maintain sell on DLF given its expensive valuations

Morgan Stanley on HDFC AMC

Overweight call, target at Rs 2,000 per share

Co to provide liquidity arrangement to FMPs impacted by Essel exposure

CLSA on Coal India

Maintain buy rating, target at Rs 290 per share

Optimistic on volume growth and costs, yet no visibility on price hikes

CLSA on Oil & Gas

Unlike 2014, this crude correction may be a warning sign for refiner

Current crude correction similar to those seen in 1997, 2001 and 2008

OMC upmoves may soon be met with a wall of refining worry

Have sell call on IOC, BPCL & HPCL; Buy on ONGC & Oil India

ONGC & Oil India offer much better risk-rewar

Wall Street ends higher: On Monday, the Dow Jones Industrial Average rose 22.92 points, or 0.09%, to 26,112.53, the S&P 500 gained 2.69 points, or 0.09%, to 2,889.67 and the Nasdaq Composite added 48.37 points, or 0.62%, to 7,845.02.

Asian markets trade mixed: Investor caution ahead of the Federal Reserve's interest rate meeting capped Asian stocks on Tuesday, while crude oil prices retreated as global growth worries overshadowed supply concerns stemming from recent Middle East tensions.

SGX Nifty: Trends on SGX Nifty indicate a flat opening for the broader indices in India, a gains of 13.50 points or 0.12 percent. Nifty futures were trading around 11,711.50-level on the Singaporean Exchange.