Sensex down 470 points; Yes Bank, Zee Ent fall
19 September 2019
Market Close: The benchmark indices witnessed a huge selling on September 19 but minor recovery in the final hour helped the Nifty to close above 10,700 level.
At close, the Sensex was down 470.41 points at 36,093.47, while Nifty was down 135.90 points at 10,704.80. About 720 shares have advanced, 1763 shares declined, and 118 shares are unchanged.
Yes Bank, Zee Entertainment, Tata Steel, IndusInd Bank and ICICI Bank were among major losers on the Nifty, while gainers include Tata Motors, UPL, Bharti Airtel, Coal India and HDFC Bank.
All the sectoral indices ended in the red led by the metal, pharma, bank, auto, energy, IT and infra, while smallcap and midcap index trading with over 1 percent cut.
"We believe that domestic and large retail investors can be the current sellers. We also believe concerns around slowing demand are impacting market," Dhananjay Sinha, Head of Strategy Research and Chief Economist at IDFC Securities said in an interview to CNBC-TV18.
He said he did not think Q2 results will be better, as expected.
He further said the market is hoping for GST rate cuts but he did not expect any big GST rate cut in the next meet.
The government has started spending but it may not be good enough right now, he added.
"Spot gold held below $1,500 an ounce, as investors stayed away from taking fresh bets after the US Fed’s policy meeting that hasn’t given a clear picture on US central bank’s policy outlook. The US central bank’s two-day meeting concluded yesterday with cutting down rates by 25 basis points as expected. However, the Fed described that the U.S economic outlook is favourable, easing chances of further rate cuts. Cutting interest rates usually support the non-yielding assets like gold. Similar trend was seen in silver too," Hareesh V, Head Commodity Research, at Geojit Financial Services said.
At the same time, domestic gold and silver traded down due to weak international sentiments and a strong Indian rupee.
Buzzing: YES Bank tanked close to 9 percent to Rs 58.40 on September 19 and was among the top Nifty loser after CARE downgraded NCDs of the bank's promoter, MCPL.
Vodafone Idea jumps 11%: Vodafone Idea jumped over 11 percent on September 19 after the Telecom Regulatory Authority of India (TRAI) released a consultation paper seeking a review of the deadline to bring down the interconnect usage charge to zero.
Asian markets update: Asian shares extended declines on Thursday after the U.S. Federal Reserve signalled a higher bar to further easing, while the Bank of Japan also held off from offering more stimulus as some had hoped.
Central Bank of India dips 2%:
Shares of Central Bank of India declined over 2 percent on BSE and looked on course to extend their losing streak into the third consecutive session on September 19.
Shares of the company declined a day after the company informed rating agency ICRA has reaffirmed "ICRA A-" rating on the lender's upper tier-II bonds but revised the outlook to "negative" from "rating watch with developing implications".
Buzzing: Shares of IDBI Bank fell 3 percent on September 19 after the company approved preferential issue of capital to Life Insurance Corporation and the government.
Buzzing: Share price of telecom major Bharti Airtel gained over a percent on September 18 amid reports that the company aims to nearly halve its debt to about Rs 50,000 crore by the end of 2019-20 (April-March), retaining mostly spectrum dues that are payable annually to the government.
Buzzing: Shares of NMDC fell more than 3 percent on September 19 after a media report indicated that reduction in lumps and fine prices by Rs 200 per tonne each.
Dollar Update: The dollar stood tall on Thursday after the U.S. Federal Reserve cut rates by 25 basis points, as expected, but its chairman signaled a higher bar for future rate cuts.
NALCO gains 4% on announcing record dividend: The company has announced a record 115 percent dividend for 2018-19, which works out to Rs 5.75 per equity share of Rs 5 each. This is the highest dividend payout since the inception of the company in 1981.
Buzzing: Shares of Madhav Infra Projects rose more than 1 percent on September 19 after the company received contracts for road and solar project.
Crude Update: Oil prices edged higher in early Asian trade on Thursday after days of turbulence, with markets soothed by Saudi Arabia’s pledge to restore full production by end-September at facilities knocked out in drone and missile attacks last weekend.
Buzzing: Share price of RITES added 2 percent on September 19 as company bagged a major export order from Sri Lanka.
Market Opens: It is flat start for the Indian indices on the back of mixed gloabl cues.
At 09:18 hrs IST, the Sensex is down 91.55 points or 0.25% at 36472.33, and the Nifty down 33.30 points or 0.31% at 10807.40. About 353 shares have advanced, 383 shares declined, and 30 shares are unchanged.
Nalco, Vodafone India, Bharti Airtel, Tata Motors, HDFC Bank, are among major gainers on the Indices, while losers are ICICI Bank, NMDC, REC, Yes Bank, Zee Entertainment, Coal India, Tata Steel, Tech Mahindra and Infosys.
Among sectors, metal, IT, auto, energy and bank are witnessing selling pressure, while smallcap and midcap index trading flat.
Rupee Opens: The Indian rupee opened lower by 11 paise at 71.35 per dollar on Thursday versus previous close 71.24.
Market at pre-open: Benchmark indices are trading higher in the pre-opening session on September 19.
At 09:03 hrs IST, the Sensex is up 161.94 points or 0.44% at 36725.82, and the Nifty up 13.70 points or 0.13% at 10854.40.
Jefferies on Gas Utilities
CGD cos indirect beneficiary of higher crude prices
Every $1/bbl rise in crude translates to 50 bps improvement in CNG economics
Weaker rupee is a headwind for near-term margins
MGL & IGL to benefit from higher crude
Impact on volume growth could be higher in case of MGL
Expect the macro to be favorable on the gas costs side
APM gas costs expected to go down by 10% in October
CLSA on market strategy
Rate transmission & improving valuations are beacons of hope
Do not see any quick recovery from the current slow trend
FY20 GDP growth is likely to be around 6%
FY20 nominal GDP growth is likely to be in single digits, lowest in 17 years
September quarter could be the bottom
Favourable base effect starts to kick in from December quarter
Valuations are turning more favourable
In large caps, like HDFC, IndusInd, LIC Hsg, SBI, Gail, NTPC
In large caps, like Motherson Sumi, Cadila, Sun Pharma & L&T
Other top picks are ICICI Bank, HCL Tech, RIL,
Other top picks are ICICI Pru, Godrej Properties & Bharti Airtel
Build in a 10% return by the Nifty over the next 12 months
Jefferies on Havells
Buy rating, target cut to Rs 790 from Rs 820 per share
View co as a multi-year growth story, backed by its varied product array
Lloyd is amid an upgradation phase as well
Current demand weakness & tight liquidity warrants near-term caution
CLSA on Voltas
Sell rating on the stock, sets target price at Rs 535 per share
Slowdown impact limited for ACs
Voltbek will remain in an investment phase for the next 4 years
Incremental focus on domestic orders in project business
Citi on Voltas
Buy rating, target at Rs 717 per share
Not much slowdown yet; festival season is key
No meaningful consumption slowdown in the products business
Projects business inflows could see a pick-up
HSBC on Voltas
Company has not seen slowdown in demand in the room AC industry in Q2
Project business outlook continues to be a mixed bag
Retain buy rating, target at Rs 685 per share
Morgan Stanley on Cadila Healthcare
Overweight call, target at Rs 304 per share
Co expects to file & launch 30-35 products per year
It expects single-digit growth in its US biz in FY20 & double-digit in FY21
Citi on Mindtree
Neutral rating, target at Rs 755 per share
Pressure continues in traditional business
Revenue growth to likely accelerate aided by deal wins & biz stability
Stock has remained range bound post the leadership change
CLSA on Info Edge
Maintain buy, target at Rs 2,400 per share
Current level an attractive entry point
Gross IT hiring should keep Naukri growth strong
Expect billing growth in 99acres to accelerate to 40%
Asian shares edge higher after Fed: Asian shares edged higher on Thursday, tracking some modest Wall Street gains after the U.S. Federal Reserve cut interest rates as expected but offered mixed signals on the next easing, keeping investors cautious.
Wall Street ends mixed: The S&P 500 ended marginally higher on Wednesday after Federal Reserve policymakers cut interest rates by a quarter of a percentage point, as expected, but gave mixed signals about their next move.
SGX Nifty: Trends on SGX Nifty indicate a flat to negative opening for the broader indices in India, a fall of 15 points or 0.14 percent. Nifty futures were trading around 10,841-level on the Singaporean Exchange.