Closing bell: Sensex down 219 points, Nifty ends at 10,526 dragged by metals, bank stocks9 min read . Updated: 22 Nov 2018, 04:13 PM IST Livemint
The BSE Sensex closed 218.78 points down at 34,981.02, while the Nifty 50 ended 73.30 points lower at 10,526.75. Here are the highlights from the markets
OTHERS : Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 erased their morning gains and closed lower for the third straight session on Thursday, dragged mainly by metal, power and banking stocks. The Indian rupee strengthened for the seventh consecutive day, its longest winning streak since February 2017, against the US dollar as falling crude oil prices reduced fears of fiscal slippage and higher inflation. IT stocks such as TCS and Infosys, which has been under selling pressure for the last two sessions, advanced today.In global markets, European stocks declined on Thursday, Asian shares rose and U.S. futures drifted in what’s set to be a subdued day of trading thanks to the American Thanksgiving holiday. Oil prices dipped after US crude inventories increased to their highest level since December 2017. Here are the highlights from the markets:
Closing bell: Sensex, Nifty close lower for 3rd session
The BSE Sensex closed 218.78 points, or 0.62%, down at 34,981.02, while the Nifty 50 ended 73.30 points, or 0.69%, lower at 10,526.75. The BSE MidCap and SmallCap indices fell 0.74% and 0.44%, respectively.All the sectoral indices on BSE, except capital goods, posted losses with metal, telecom, power, realty, basic materials and consumer durables falling over 1%.Adani Ports, L&T, TCS, ONGC and HDFC were among the major gainers on the key indices, whereas Mahindra, Tata Steel, Wipro, Axis Bank and Indian Oil were among top losers.
Gold prices above Rs 32,000-mark on jewellers’ demand
Gold prices went past the Rs 32,000-mark on fresh buying by local jewellers amid a firm trend overseas. Silver too firmed up by Rs 200 on the back of increased offtake by industrial units. Gold prices surged after falling for three straight days, largely on fresh buying by jewellers at the domestic spot market, coupled with a better trend globally.In Delhi, gold of 99.9% and 99.5% purity rebounded by Rs 90 each to Rs 32,040 and Rs 31,890 per 10 gram, respectively. It had lost Rs 200 in the previous three days. In line with gold, silver ready recovered by Rs 200 to Rs 38,000 per kg, while weekly-based delivery by Rs 302 to Rs 36,888 per kg.
Cadila Healthcare unit gets two drug approvals, shares struggle
Cadila Healthcare said that Zydus Cadila received two drug approvals from the USFDA for Atorvastatin calcium tablets and Dimethyl Fumarate delayed-release capsules. Shares traded 1.28% down at Rs 353.65.
Vakrangee shares hit upper circuit after economic offences wing closes probe
Vakrangee Ltd shares rose 4.97% to Rs 25.35 per share after the company said the economic offences wing has completed a probe into a complaint filed against the company and its MD and CEO Dinesh Nandwana relating to price manipulation. The investigators have not found any substance in the complaint and closed the enquiry, noted the company in a BSE filing.
Indoco Remedies jumps 20% as USFDA clears Goa facilities
Indoco Remedies shares jumped 20% to Rs 206.40 per share after the company said the USFDA has concluded inspection at Indoco’s Sterile facility (Plant II) and Solid Dosages facility (Plant III) located in Goa with two minor observations.
Market update: Sensex, Nifty erase gains, trade lower
The BSE Sensex traded 135.34 points, or 0.38%, down at 35,064.46, while the Nifty 50 fell 45.05 points, or 0.42%, to 10,555. The BSE MidCap index fell 0.40%, while the SmallCap edged up 0.05%. Sixteen out of 19 sectoral indices on BSE traded lower with metal and power losing most at over 1%. IT, teck and capital goods gained.“Markets will remain volatile in the next six to nine months -- either up or down -- and investors will have to play the volatility to their advantage,” said Avinash Gorakshakar, head of research at Joindre Capital Services Ltd. in Mumbai. “Oil price is a crucial factor for Indian equities and politics is a wild card and they will decide the direction of stocks near term,” he said.
Oil dips as U.S. crude stockpiles swell
Oil prices slipped after US crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although the potential for a supply cut by OPEC prevented further drops. US WTI crude futures were at $54.47 per barrel, 16 cents, or 0.3% below their last settlement. Front-month Brent crude oil futures were at $63.34 per barrel, down 14 cents, or 0.2 %.“U.S. inventory data...continued to show significant supply builds, which comes on the back of sustained record U.S. crude oil production,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore. However, Innes said that once U.S. pipeline bottlenecks were alleviated, which he said he expected in 2019, “the entire notion of a tight global spare capacity argument goes down the well”. Reuters
IL&FS Transportation Networks delays Q2 results
IL&FS Transportation Networks, a unit of IL&FS group, delayed filing September quarter financial results, citing NCLT insolvency proceeding. The company said it will declare quarterly numbers at the earliest. “The newly appointed board of IL&FS is in the process of preparation of roadmap and its subsequent submission to NCLT, which will require IL&FS Transportation Networks Ltd (ITNL) to undertake divestment, restructuring and/or consolidation of its assets...which will have an impact on the accounting and financial aspects of ITNL,” the company said in a BSE filing. Shares traded 0.52% down at Rs 19.05.
Motilal Oswal maintains “Buy” on Vodafone Idea, TP Rs 55
“The company aims to radically simplify products by cutting down the number of non-unlimited plans to only five price-plans on a pan-India basis. This should reduce cost and improve ARPU,” said Motilal Oswal in a research note after the company’s analyst meet. The company plans to decisively streamline duplication of network in 300 districts, which will save Rs 12 billion to Rs 17 billion from G&A/customer opex synergies, added the brokerage. Vodafone Idea shares traded 1.24% down at Rs 43.85 per share.
Binani Cement goes to UltraTech: What now for Dalmia Bharat?
The govt's gunning for lending boost but banks are out of powder! It needs to infuse capital if public sector banks want to take advantage of the Basel III leeway and lend more https://t.co/j6ZvCjSScc @aparnaviyer02 pic.twitter.com/EUcDZVGOg6— Mint Mark to Market (@livemint_m2m) November 22, 2018
Tech Mahindra shares gain on positive analyst view
Shares of Tech Mahindra Ltd rose as much as 2.8% to Rs 710, in their biggest intraday percent gain since Nov 15. The company hosted its annual analyst meeting on Wednesday and at least three brokerages had positive commentary.Jefferies said the company expects significant revenue boost from 5G to come beyond FY20; also reflected in its 5-6 pct growth target for communications business. The company’s 8-10% target growth for enterprise implies overall growth of 7.5% next year, largely in line with our estimate, noted Jefferies. The brokerage maintained “hold” and raises TP to Rs 770 from Rs 690.65.Morgan Stanley said, “There were no surprises in the analyst meeting”; management maintained positive outlook for deal win momentum and margins.” The company expects to maintain growth momentum of 8-10% yoy in the enterprise unit for 2020, added Morgan Stanley. Even with rupee appreciation, they see limited downside risks to co’s estimates, said the brokerage. Reuters
Indian Hotels shares hit over 5-month high; Motilal Oswal initiates coverage
Indian Hotels Co. Ltd’s stock advanced as much as 5.2% to Rs 141.85 to its highest since June 11. Domestic brokerage Motilal Oswal initiates coverage on the stock with “buy” rating and TP of Rs 163, implying an upside of 21%. Motilal Oswal said the company is an attractive investment candidate in the upcoming industry upcycle, adding that it has an “invaluable asset” in the form of a strong brand name. The brokerage noted that strong presence in high-demand, high-occupancy micro markets of Mumbai, NCR, Bangalore and Goa placed it well to cater to rapid growth in the domestic market. Reuters
DHFL shares up 3% after results
DHFL shares gained as much as 3.6% to Rs 243.50 per share. The company o n Wednesday reported a net profit of Rs 439 crore during the July-September quarter against a net profit of Rs 288 crore in the same quarter last year. Revenue from operations stood at Rs 3,516 crore, compared with Rs 2,628 crore last year. The company said it is in the process of raising much more resources to increase the liquidity level in offer to meet all the financial obligations.In other news, the Sebi has initiated an enquiry into DSP Mutual Fund selling bonds of DHFL in September, Mint reported, citing two people aware of the matter.
Bharti Airtel shares fall 3%
Bharti Airtel shares fell as much as 3.08% to Rs 321.50 per share after a news report said that Mukesh Ambani’s Reliance Jio to replace Bharti Airtel as service provider for Railways from January 1.
Deepak Fertilisers shares gain 3%
Shares of Deepak Fertilisers & Petrochemicals Corp. Ltd rose as much as 3.5% to Rs 170 after the company informed exchanges that the normal operations had resumed fully as the Income Tax team conducting search and seizure operations left the company’s offices.
Rupee rises against dollar for 7thd ay
The Indian rupee strengthened for the seventh consecutive session, its longest winning streak since February 2017, against US dollar after continued fall in crude oil reduced fears of fiscal slippage and higher inflation. The currency hit near a three-month high and gained nearly 2% in last seven sessions. So far this November, the home currency has gained nearly 4%. At 9.15am, the rupee was trading at 71.12 a dollar, up 0.48% from its Tuesday’s close of 71.46. The currency opened at 71.14 a dollar and touched a high of 71.11—a level last seen on 4 September. Markets were closed on Wednesday due to bank holiday. The 10-year government bond yield stood at 7.755% from its previous close of 7.793%.
Commodity corner: Oil prices fall, gold rates steady
Oil: Oil prices dipped after US crude inventories increased to their highest level since December 2017 amid concerns of an emerging global glut, although an expected supply cut by producer cartel OPEC prevented further drops. US WTI crude futures, were at $53.38 per barrel, 25 cents, or 0.5% below their last settlement. Front-month Brent crude oil futures were at $63.28 per barrel, down 20 cents, or 0.3%, from their last close.Gold: Global gold prices were steady early on Thursday after hitting their highest in two weeks in the previous session, with improved appetite for risk weighing on the U.S. dollar. Spot gold was steady at $1,225.70 per ounce at 0123 GMT. Prices on Wednesday marked their strongest since Nov. 11 at $1,230.07 per ounce. U.S. gold futures were down 0.2% at $1,226.1 per ounce.Metals: Copper prices edged down on Thursday, shedding some of previous session’s gains on worries over slowing global economic growth amid an escalating trade war between Washington and Beijing. Three-month LME copper was down 0.1% at $6,229.50 a tonne, while the most-traded copper contract on the SFE edged up 0.2% to 49,510 yuan ($7,146.26) a tonne. The most traded nickel contract on the Shanghai Futures Exchange lost 1.5 percent to 91,000 yuan a tonne. Reuters
Asian stocks steady after US gains
Stocks in Asia got some reprieve from the recent sell-off after a modest rebound in technology and energy shares underpinned gains in U.S. equities. The dollar slipped and Treasuries steadied as debate about the Federal Reserve softening its stance on raising interest rates gathered pace. Equity benchmarks were little changed with volumes subdued after their U.S. counterparts closed higher in light pre-Thanksgiving trading.Japan’s Topix index rose 0.1% as of 10:44 a.m. in Tokyo. Australia’s S&P/ASX 200 Index gained 0.7%. Hong Kong’s Hang Seng Index was little changed. S&P 500 futures rose were flat. The S&P 500 rose 0.3% and the Nasdaq 100 gained 0.8%. Bloomberg