Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 advanced on Monday, breaking a three-day losing streak, led by a rally in shares of IT companies and select private banks. Moreover, the government’s proposal to take over the control of the troubled lender ILFS also boosted sentiment. Yes Bank shares gained nearly 10% after the bank released a part of its unaudited financial statement for Q2 of FY19. Markets opened lower after shares Kotak Bank and Bandhan Bank fell following the RBI’s action on Bandhan Bank, which fell 20%.World stocks kicked off the new quarter with gains as optimism about Nafta deal lifted market sentiment. European stocks were up overall despite losses on Italian markets on political concerns. Oil prices held their gains, with international benchmark Brent briefly hitting a four-year high, as US sanctions on Tehran squeezed Iranian crude exports. Here are the latest updates from the markets:
01 Oct 2018, 03:37:00 PM IST
Closing bell: Sensex, Nifty snap 3-day losing streak
BSE Sensex closed 299 points, or 0.83%, higher at 36,526.14, while the Nifty 50 gained 77.85 points, or 0.71%, to close at 11,008.30. The BSE MidCap Index rose 0.53%, while the SmallCap Index declined 0.25%.Among the sectoral indices on BSE, IT and teck led gains by rising over 2%. Power, utilities, metal and finance advanced over 1%. On the other hand, Realty, energy and telecom fell over 1%.Yes Bank, TCS, HDFC, SBI and Hindalco were among the top gainers, whereas Bharti Airtel, Axis Bank, IndusInd Bank, Reliance Industries and HPCL were among the major losers.
01 Oct 2018, 03:22:00 PM IST
HDFC increases lending rate days ahead of RBI rate review
HDFC, the country’s largest mortgage financer, has increased its lending rate, following in the footsteps of other lenders. The HDFC rate hike will be effective from today. “HDFC has increased its retail prime lending rate (RPLR), on which its adjustable rate home loans are benchmarked, by 10 basis points, with effect from October 1, 2018,” the lender said in a statement to the BSE. The HDFC move comes in wake of an overall increase in the interest rate in the financial system. Read more
01 Oct 2018, 03:17:00 PM IST
Yes Bank shares jump 14% after disclosure of financial statement
Yes Bank shares surged as much as 14.3% to Rs 209.70 after the bank released a part of its unaudited financial statement for Q2 of FY19. The bank said that its gross bad loan ratio fell 47 basis points (bps) year-on-year (y-o-y) to 1.35%. The bank said that while its deposits grew 41% y-o-y to Rs 2.23 trillion and loans and advances grew 61.5% y-o-y to Rs 2.4 trillion in the September quarter of FY19. It added that its domestic loans saw a 56.4% y-o-y growth in the same period.In a statement to the stock exchanges, Yes Bank said, over the past few days, “some unfounded speculations regarding the bank’s asset quality have been brought to its notice. In this context, management clarifies that the asset quality continues to be stable”. Read more
01 Oct 2018, 03:00:00 PM IST
Tata Motors shares rise after September sales data
Tata Motors Ltd said sales in domestic market in September grew by 20% at 64,250 units compared to 53,964 units over the previous year. Commercial vehicles domestic sales in September rose by 26% at 46,169 units. M&HCV truck segment grew 32% to 16,239 units. September commercial passenger carrier segment grew 6% to 4,619 units. Sales from exports (from CV and PV) grew by 35% with 5,250 units compared to 3,887 units last year Passenger vehicles domestic sales came in at 18,429 units, up 7%. Tata Motors shares rose 2.465 to Rs 228.95.
01 Oct 2018, 02:40:00 PM IST
IT stocks trade higher
Shares of IT companies traded higher, with the Nifty IT Index rising over 2%. Infibeam rose over 18%. TCS and Mindtree were up over 3%. Infosys and Wipro advanced over 2%.
01 Oct 2018, 02:20:00 PM IST
Cadila Healthcare gains on USFDA drug approval
Cadila Healthcare Ltd said that Zydus Cadila has received final nod from the USFDA to market generic Desoximetasone cream used for the treatment of various skin conditions. The product will be manufactured at the group’s topical manufacturing facility at Ahmedabad. Cadila shares rose 1.25% up at Rs 391.35 per share.
01 Oct 2018, 01:52:00 PM IST
Highlights: Government aims to take over IL&FS
■ The government wants to appoint the tribunal-approved 10 directors on the board, and have identified few people, including Uday Kotak as non executive chairman and director.■ Fresh funds will be infused in the company when the new board comes up with the revival plan.■ The Special Fraud Investigation Offices (SFIO) has also initiated investigation into the matter.■ “Ravi Parthasarathy and along with CEOs, CFOs were painting rosy picture of company, deliberately despite knowing truth, so they were misleading,” argued MCA counsel.■ The ILFS difficulties can create issues for financial sector as a whole and that’s why the government wants to change the board even before sunset today.■ The NCLT asked the MCA to file an affidavit with the names of other people for the appointment and reserved its order post lunch.■ IL&FS Transportation Network rose 19.96% to Rs 27.05, IL&FS Investment Managers surged 10% to Rs 8.58 and IL&FS Engineering and Construction jumped 20% to Rs 16.02. Maulik Vyas/Mint
01 Oct 2018, 01:40:00 PM IST
Market update: Sensex, Nifty trim losses
The BSE Sensex traded 19.66 points, or 0.35%, lower at 36,207.48, while the Nifty 50 fell 32.60 points, or 0.30%, to 10,897.85. In intraday trade, the Sensex fell 266.49 points to 35,960.65 and the Nifty 50 declined 108.9 points to a low of 10,821.55.The BSE MidCap and SmallCap indices were down 0.95% and 1.76%, respectively. Among the sectoral indices on BSE, IT and teck rose over 2% followed by utilities, power and metal. Energy, realty and capital goods led losses by falling over 2%.Yes Bank, TCS, Hindalco and Infosys were among the top gainers, whereas Kotak Bank, HPCL, Axis Bank and IndusInd Bank were among the major losers.
01 Oct 2018, 01:30:00 PM IST
What analysts say about RBI action on Bandhan Bank
■ “The RBI measures are not really sufficient to change the sentiment because even though it implies there would be lesser market borrowing, the fiscal deficit target remains the same,” said Dhananjay Sinha, head of institutional research at Emkay Global Financial Services. “This means that the RBI will be looking to tap in other sources, which wont make much of a difference eventually.”■ “There is huge scope for improvement in efficiency. Restrictions on opening new branches are not seen having a substantial impact on (Bandhan Bank’s) balance sheet growth. Hence, we are not altering our growth estimates,” said ICICI Direct in a 1 October note. “Any stake dilution, via fresh issue or stake sale by NoFHC directly to bring down the stake can be highly EPS and RoE dilutive,” ICICI Direct added.■ “RBI is being proactive like never before when it comes to ensuring compliance,” said Kranthi Bathini, director of Mumbai-based financial advisory firm WealthMills Securities Pvt. “No violations are left unpunished.”
01 Oct 2018, 01:20:00 PM IST
Oil prices extend longest quarterly rally
Oil in London extended gains after the longest quarterly rally in a decade as a slowdown in American drilling added to supply risks while the U.S. and Saudi Arabia discussed market stability. Brent crude rose as much as 0.7 percent, after front-month futures climbed for a fifth straight quarter. Brent for December settlement increased as much as 54 cents to $83.27 a barrel on the ICE Futures Europe exchange and was at $83.17 at 12:22 p.m. in Singapore. WTI for November delivery traded at $73.55 a barrel on the New York Mercantile Exchange, up 30 cents. Bloomberg
01 Oct 2018, 12:50:00 PM IST
Government may seek control of IL&FS
The government may seek a management change and look to supersede the existing board, CNBC reported in a Twitter post, citing government sources it did not name. Uday Kotak has been proposed to be chairman of the IL&FS board, reported CNBCTV18. Shares of ILFS Transportation Networks Ltd jumped 15.08% to Rs 25.95. Read more
01 Oct 2018, 12:30:00 PM IST
Aviation stocks fall after IOC hikes fuel prices
Shares of airlines plunged after Indian Oil hikes aviation fuel prices. IOC has raised prices in metro cities for domestic airlines in the range of 6.8% to 7.4%, effective Oct 1, according to its website. From Monday, aviation fuel will cost Rs 74,567/kilolitre in Delhi, Rs 79,736 /kilolitre in Kolkata, Rs 74,177 /kilolitre in Mumbai and Rs 75,521 /kilolitre in Chennai, IOC said.IndiGo shares fell as much as 6.9% to their lowest level since Feb. 12, 2016. The stock has declined 31.5% this year as of last close. Jet Airways shares fell as much as 9.3% to their lowest since April 1, 2009. The stock fell for the 10th straight session and was down 78.4% this year as of last close. SpiceJet shares dropped over 6% to their lowest level since Feb. 20, 2017, and was down 53.3% this year as of last close.
01 Oct 2018, 12:05:00 PM IST
Ashok Leyland shares down 3% after September sales data
Ashok Leyland Ltd said September total sales stood at 19,373 vehicles, up from 15,371 vehicles last year. September sales of M&HCV rose to 14,232 units from 11,805 vehicles last year. September LCV sales stood at 5,141 vehicles, compared to 3,566 vehicles last year. Ashok Leyland shares fell 3.65% to Rs 114.70.
01 Oct 2018, 11:57:00 AM IST
Dr. Reddy’s shares trade 2% lower
Dr. Reddy’s Laboratories Ltd said that it has completed the sale of its antibiotic manufacturing facility and related assets in Bristol, Tennessee (USA) to Neopharma Inc. Further, the company said that it has terminated the license granted to Armis Biopharma Inc. for its investigational antibacterial product, DFA-02, for the prophylaxis of surgical site infections. As a result, Dr. Reddy’s Labs has regained worldwide rights to DFA-02, and is currently evaluating its options to take the program forward.Moreover, the company announced the launch of lmatinib Mesylate Tablets USP, a therapeutic equivalent generic version of Gleevec Tablets in the US market. The Gleevec brand and generic had US sales of approximately $868 million MAT for the most recent twelve months ending in July 2018, according to IMS Health.Dr Reddy’s Labs shares traded 2.36% down at Rs 2470.45.
01 Oct 2018, 11:25:00 AM IST
Infibeam shares rise 20% today
Infibeam shares rose as much as 19.98% to Rs 70.55 today. The stock fell nearly 72% on Friday after a WhatsApp message circulating among traders raised concerns about the e-commerce company’s accounting practices. In a clarification to exchanges, the company said all material information having a bearing on the performance of the company, including all price sensitive information, had been disclosed within the stipulated time. Read more
01 Oct 2018, 11:12:00 AM IST
Apollo Tyres’ investors peeved at rising wages of top brass even as profits fall
Shares of Apollo Tyres traded 1.84% down at Rs 208.15. The stock fell as much as 3.6% to Rs 204.55 in early trade.
01 Oct 2018, 10:57:00 AM IST
Car sales rise marginally in September for Maruti
Maruti Suzuki India Ltd on Monday reported a marginal rise in domestic car sales during September, stemming a decline that lasted two consecutive months. Domestic car sales rose by 90 units to 136,876 units during September from 136,786 units in the year-ago period. These figures do not include sales of Maruti Suzuki’s Omni and Eeco vans, and light commercial vehicle Super Carry. Maruti shares traded 0.36% down at Rs 7,324.05 per share. The stock hit a high and a low of Rs 7,499.60 and Rs 7,211, respectively. Read more
01 Oct 2018, 10:34:00 AM IST
Yes Bank shares trade higher
Yes Bank said that CARE Ratings has put various debt instruments of the bank under “Credit Watch with Developing Implications” after the RBI has restricted CEO Rana Kapoor’s tenure till January 2019. Moreover, in connection with the CEO’s succession plan, the bank said in a separate release that a search and selection committee of two external experts will be finalised on October 7. Yes Bank share price rose as much as 6.45% to Rs 195.30.Also Read: Yes Bank promoter not for Rana Kapoor’s extension
01 Oct 2018, 10:22:00 AM IST
RBI may raise policy rates by 25bps on Friday, say economists
The Reserve Bank of India’s (RBI) monetary policy committee (MPC) may raise policy rates by 25 basis points on Friday, for the third time this year, along with a change in stance to a hawkish one, amid surging crude oil prices and weakening rupee. Of the 15 economists surveyed by Mint, 14 expect RBI to raise repo rate, the rate at which it lends to commercial banks, to 6.75%. Only one economist expects a 50 basis points hike to 7%. Read more
01 Oct 2018, 10:10:00 AM IST
ITC shares struggle after rising 2% in early trade
ITC shares rose as much as 2.1% to Rs 302.95 in early trade. The company plans to enter packaged rice business under the Aashirvaad brand, reported The Times of India. As of 10.06am, the stock was trading 0.3% down at Rs 295.80.
01 Oct 2018, 09:45:00 AM IST
Policy rate has no relevance at this point, guidance is the key
01 Oct 2018, 09:30:00 AM IST
Kotak Bank shares plunge 12% after Bandhan Bank trouble
Following Bandhan Bank, Kotak Mahindra Bank shares also declined as much as 12.3% to Rs 1,002.30 as analysts fear the similar action after the bank failed to reduce its promoter holding last month. The RBI in August rejected its proposal to issue non-convertible preference shares to reduce promoter holding. RBI had mandated the bank to reduce promoter shareholding to 20% of paid up capital by 31 December 2018, and 15% by 31 March 2020. Uday Kotak, vice chairman and managing director of the Kotak Bank, currently holds a 30.03% stake in the bank.
01 Oct 2018, 09:23:00 AM IST
Bandhan Bank shares dive 20% after RBI directive
Bandhan Bank shares fell as much as 20% to Rs 451.20 after the Reserve Bank of India (RBI) has barred Bandhan Bank from opening new branches without its approval and ordered the bank to freeze the salary of its chief executive Chandra Shekhar Ghosh over its failure to meet shareholding rules. “RBI has communicated to us that since the bank was not able to bring down the shareholding of Non Operative Financial Holding Company to 40% as required under the licensing condition, general permission to open new branches stands withdrawn and the bank can open branches with prior approval of RBI and the remuneration of the MD and CEO of the bank stands frozen at the existing level, till further notice,” the bank said in a notification to BSE.
01 Oct 2018, 09:17:00 AM IST
Bond yield falls 11 bps on RBI OMO announcement
India’s 10-year government bond yield eased by 11 basis points after the Reserve Bank of India said that it will infuse fresh liquidity through open market operations of Rs 36,000 crore in October. Bond markets also cheered the decision by the government to cut the borrowing programme by Rs 70,000 crore on Friday for the second half of the current fiscal year, signalling its confidence in keeping the fiscal deficit under control. The 10-year bond yield was hovering at 7.916%, from its previous close of 8.024%. Bond yields and prices move in opposite directions. Meanwhile, the rupee opened marginally lower against the US dollar after crude oil hit $83 bbl. At 9.15am, the currency was trading at 72.63, down 0.2% from previous close.
01 Oct 2018, 09:05:00 AM IST
Tangled up in regulatory knots, Bandhan Bank seeks a way out
01 Oct 2018, 08:55:00 AM IST
Commodity corner: Oil hits 4-year high, gold prices ease
Metals: London metal prices eased amid evidence that the US-China trade dispute impacted China’s manufacturing activity last month and as a week-long holiday got underway in the country. LME copper had eased 0.3% to $6,242 a tonne. LME zinc slipped 0.8 percent to $2,591.50.Oil: Brent crude oil prices hit their highest level since November 2014 ahead of U.S. sanctions against Iran that kick in next month. Brent crude oil futures were trading at $83.24 per barrel, up 51 cents, or 0.3%, their highest level since November 2014. U.S. WTI crude futures were up 37 cents, or 0.5%, at $73.62 a barrel.Gold: Gold prices dipped on Monday, with the dollar holding steady after marking a near three-week high in the previous session in the wake of the U.S. Federal Reserve’s plans last week for multiple interest rate hikes by 2020. Spot gold was down 0.2% at $1,189.22. US gold futures were down 0.3% at $1,193.0 an ounce. Reuters
01 Oct 2018, 08:46:00 AM IST
Opening bell: Cues to look out for before trading today
■ Asian markets opened on a subdued note. MSCI’s broadest index of Asia-Pacific shares outside Japan is little changed, reports Reuters. Oil prices opened firm with Brent hovering close its highest in nearly four years. Over the weekend, US stocks closed flat.■ The Reserve Bank of India (RBI) has barred Bandhan Bank from opening new branches without its approval over its failure to meet shareholding rules. The company said it is exploring inorganic opportunities to reduce promoters’ stake.■ Aggravating the problem for loss-making airlines, oil marketing companies have increased the domestic aviation turbine fuel prices by 7.25% effective 1 October, reports The Hindu.■ InterGlobe Aviation-promoted IndiGo, which had recently announced the launch of its first daily flight between Amritsar and Dubai from October, is betting big on the Middle East market, reports Mint.■ ITC plans to enter packaged rice business under the Aashirvaad brand, reports The Times of India. According to the report the company is running a pilot project.■ Power tariffs in spot electricity market touched a decade high of Rs 17.61 per unit in the spot market due to low hydro and wind energy production and coal shortage at thermal plants, reports PTI.■ India’s monsoon, which accounts for more than 70% of annual precipitation, missed a forecast for normal rainfall for a second year. The rainy season is critical to the country’s agriculture sector. Read more. R. Sree Ram/MintWith inputs from Reuters
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