12 min read.Updated: 09 Oct 2018, 03:57 PM ISTNirav Vyas
The BSE Sensex closed 174.91 points, or 0.51%, lower at 34,299.47, while the Nifty 50 ended 47 points, or 0.45%, to down at 10,301.05. Here are the highlights from the markets
Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 closed lower after a volatile session on Tuesday dragged mainly by FMCG and auto stocks. Tata Motors shares plunged over 13% after Jaguar Land Rover reported a decline in global sales and a shutdown of its UK plant for two weeks. The rupee plunged to a fresh record low of 74.28 against the US dollar, tracking losses in global currencies due to deepening trade tensions between the US and China. The IMF on Tuesday maintained India’s growth forecast for 2018-19 unchanged and called for further tightening of monetary policy.European stocks gained lifted by oil and banking stocks, while Asian shares slumped to a 17-month low after China briefly allowed its currency to slip past a psychological bulwark. On Wall Street, futures were pointing lower again. Oil prices rose above $84 a barrel as more evidence emerged that crude exports from Iran are declining in the run-up to the re-imposition of U.S. sanction. The IMF downgraded its global growth forecast for the first time since 2016. Here are the highlights from the markets:
09 Oct 2018, 03:37:00 PM IST
Closing bell: Sensex, Nifty close lower
The BSE Sensex closed 174.91 points, or 0.51%, lower at 34,299.47, while the Nifty 50 ended 47 points, or 0.45%, to down at 10,301.05. The BSE MidCap and SmallCap indices fell 0.16% and 0.45%, respectively.Fourteen out of 19 sectoral indices on BSE ended lower with consumer durables and auto losing most at 3.91% and 2.62%, respectively. On the other side, metal and healthcare gained over 1%.Adani Ports, HDFC, Vedanta, Dr. Reddy’s, Bajaj Finance and Tata Steel were among the major gainers, whereas Tata Motors, Asian Paints, Titan, HPCL, Maruti Suzuki and Hindustan Unilever were major losers.
09 Oct 2018, 03:12:00 PM IST
India seen escaping Argentina’s fate as remittances curb deficit
Remittances should rise 5 percent to 6 percent in the coming years, preventing the deficit from widening past 2 percent to 2.5 percent of GDPhttps://t.co/6kaRtFfuoy
Gold prices declined by Rs 220 to Rs 31,650 per 10 gram due to slowing demand from local jewellers amid weak global cues. Silver rates also fell by Rs 50 per kg to Rs 39,250 per kg due to reduced offtake by industrial units and coin makers. In Delhi, gold rates of 99.9% and 99.5% purity lost Rs 220 each to Rs 31,650 and Rs 31,500 per 10 gram, respectively. The metal had fallen by Rs 30 on Monday. Sovereign gold, however, remained steady at Rs 24,600 per piece of 8 gram in restricted activity. Read more
09 Oct 2018, 02:35:00 PM IST
Six dead, 14 hurt in blast at SAIL’s Bhilai plant
Six employees were killed and 14 others injured Tuesday in a blast at the Bhilai steel plant of state-owned SAIL in Chhattisgarh’s Durg district, police said. The explosion took place around 11 am in a gas pipeline connected to the coke oven section of the plant in Bhilai town, located around 30 km from the capital, Inspector General of Police (Durg Range) G P Singh said. “At least six people were burnt to death while 14 others received injuries and most of them were said to be in a serious condition,” he added. SAIL India shares traded 0.23% up at Rs 64.65. Read more
09 Oct 2018, 02:13:00 PM IST
ONGC piling up debt due to govt decisions, says union
The trade union body of the state-run Oil and Natural Gas Corporation (ONGC) has accused the government of “interfering with decision making and breaking the economic backbone of the company”. In a four-page letter written on 4 September addressed to Prime Minister Narendra Modi, ONGC’s Employees Mazdoor Sabha general secretary A R Tadvi said, “Decisions taken over the past four-and-a-half years have broken the economic backbone of the company. The employees union has given a notice period of three months to give ONGC a free hand to take its own decisions.” Mint has a copy of the letter. Read more
09 Oct 2018, 02:01:00 PM IST
Rupee hits record low of 74.28 a dollar
The rupee dropped to a record low on Tuesday afternoon with weakness in domestic shares and some Asian peers weighing on sentiment. Traders said there was also some importer demand seen in afternoon trade, but intermittent dollar selling by the central bank is likely to prevent a steep fall in the unit. Sentiment has also been weaker after the central bank held rates steady in a surprise move on Friday and pushed the rupee to its previous record low of 74.23. The partially convertible rupee was trading at 74.24/25 per dollar at 0751 GMT, after hitting 74.28 earlier and weaker than its previous close of 74.0750. Reuters
09 Oct 2018, 01:27:00 PM IST
Tata Motors shares extend losses, dives 20%
Tata Motors shares touched a low of Rs 170.65 a share, a level last seen on 30 December 2011, and fell as much as 19.8% in intraday trading. At 12.49pm, the scrip was trading at Rs 175.90 on the BSE, down 18% from its previous close. So far this year, Tata Motors has dropped over 60%. Read more
09 Oct 2018, 01:13:00 PM IST
European equities rebound slightly at open
Europe’s main stock markets staged a modest rebound Tuesday to rise by about 0.1 percent at the opening bell. In initial trade, London’s benchmark FTSE 100 index of top blue-chip shares stood at 7,242.57 points, Frankfurt’s DAX 30 at 11,963.63 points and the Paris CAC 40 at 5,304.11. Global stocks had mostly fallen Monday as worries about China and Italy added to unease over last week’s sudden rise in US interest rates. AFP
09 Oct 2018, 01:00:00 PM IST
Oil prices rise on signs that Iranian crude exports fall further
Oil prices rose on Tuesday as more evidence emerged that crude exports from Iran, OPEC’s third-largest producer, are declining in the run-up to the re-imposition of U.S. sanctions and as a hurricane moved across the Gulf of Mexico. Brent crude was up 26 cents, 0.3 percent, at $84.17 a barrel by 0244 GMT. On Monday, Brent fell to a low of $82.66, but mostly recovered as investors bet China’s economic stimulus would boost crude demand. Brent rose to a four-year high of $86.74 last week. U.S. West Texas Intermediate (WTI) crude futures were down by 24 cents, or 0.3 percent, at $74.53 a barrel. WTI fell to as low as $73.07 in the previous session but closed just 5 cents lower. Read more
09 Oct 2018, 12:45:00 PM IST
BHEL wins Rs 2,900 crore order, shares struggle
Bharat Heavy Electricals Ltd said that it has won orders worth Rs 2,900 crore for Emission Control equipment from NTPC. BHEL shares traded 1.66% down at Rs 68.30.
09 Oct 2018, 12:34:00 PM IST
Religare Broking recommends “buy” on Britannia Industries with PT Rs 6,519
“We estimate revenue and PAT to grow by 13.6% & 19% CAGR respectively over FY18-20E, driven by steady capacity addition, improved product mix (more products in premium category), wide distribution reach, continued efforts towards renovating & innovative products, and cost saving,” said Religare Broking. The brokerage recommends a “Buy” on the stock with target price of Rs. 6,519. Britannia Industries shares traded 0.71% down at Rs 5,499.60.
09 Oct 2018, 11:55:00 AM IST
Kotak Institutional Equities upgrades Ujjivan Financial, City Union Bank, RBL Bank
“Banks are likely to post marginal profits owing to high provisions for bad loans as well as MTM provisions. Impaired ratios will decline qoq but NBFC exposure, especially to IL&FS, will likely dominate the discussion for banks,” noted analysts at Kotak Institutional Equities.“For NBFCs, the point of discussion would be their ability to manage ALM (tenure of assets and availed lines of funding) in light of likely reduced funding by debt markets and potential regulations. Operating performance of NBFCs will likely be steady in 2QFY19 even as earnings can’t be directly compared yoy due to Ind-AS migration.”The brokerage upgraded Ujjivan Financial Services to “Buy” from “Add”, City Union Bank to “Add” from “Reduce”, and RBL Bank to “Reduce” from “Sell”.
09 Oct 2018, 11:40:00 AM IST
Tata Motors shares down 13% on JLR woes
Tata Motors shares on Tuesday slumped over 14% to hit a near seven-year low after Jaguar Land Rover reported a 12.3% decline in global sales, and announced shutdown of its West Midland plant for two weeks due weak global demand. The Tata Motors stock fell as much as 14% in intraday trade to Rs 183—a level last seen on 2 January 2012. At 11.18am, the scrip was trading at Rs 185 on BSE, down 13% from previous close. So far this year, the stock has dropped over 57%. Read more
09 Oct 2018, 11:18:00 AM IST
Shares of housing finance companies gains
Shares of housing finance companies traded higher after The National Housing Bank has increased the refinancing limit to ₹ 30,000 crore from the existing limit of ₹ 24,000 crore in order to address the liquidity crisis in the housing finance industry. Starting July, the NHB has disbursed ₹ 8,835 crore of the ₹ 24,000 crore refinancing window to housing finance companies. Read moreHDFC shares were up 3.07%, IIFL Holdings rose 4.54%, M&M Financial Services climbed 3%, Edelweiss Financial gained 2.8% and Bajaj Finance advanced 1.5%. However, Indiabulls Housing Finance and DHFL traded marginally lower.
09 Oct 2018, 11:03:00 AM IST
Shares of ILFS units hit lower circuit
Shares of IL&FS Transportation Networks Ltd and IL&FS Engineering and Construction Co. Ltd were locked in lower circuit after falling as much as 9.9%. Crisis-hit Infrastructure Leasing and Financial Services (IL&FS) may require impairments of around ₹ 15,000 crore in loans and equity in its subsidiaries, said a report by Singapore-based REDD Intelligence. According to the report, IL&FS reported consolidated debt of ₹ 91,080 crore. Read more
09 Oct 2018, 10:38:00 AM IST
Net equity mutual fund inflows hit four-month high in Sept
Net inflows into domestic equity mutual funds rose to ₹ 11,172 crore in September, up 33.39% from August, according to Amfi data. In the same period, both Sensex and Nifty lost over 6%. In the year so far, Sensex has gained 1.23% while the Nifty has slipped 1.73%.Redemption pressures from mutual fund equity schemes also eased in September at ₹ 11,849 crore from ₹ 15,702 crore in month-ago period. However, total redemptions increased 6.5% to ₹ 19.23 trillion in September. Read more
09 Oct 2018, 10:17:00 AM IST
Fiberweb, JMC Projects gain on new awards
Fiberweb (India) Ltd shares traded 2.97% up at Rs 45 after the company said it has received an order worth Rs 127 million.Shares of JMC Projects (India) Ltd rose 2.99% to Rs 74.10 after the company said it has secured new orders worth Rs 514 crore.
09 Oct 2018, 10:08:00 AM IST
Maruti’s stock is Suzuki’s worry
At $28 billion, a three-year-low, Maruti's market cap is now close to that of its Japanese parent, Suzuki Motorhttps://t.co/1WHHAO3LQ9
Tata Motors shares fell as much as 5.61% to Rs 200.80 after the company said Jaguar Land Rover reported 12.3% decline in its retail sales to 57114 vehicles for September. Moreover, Jaguar Land Rover said on Monday that it will close its Solihull plant in UK for two weeks later this month after it reported a nearly 50% fall in sales to China as import duties and a trade war with the United States hurt demand. The plant will close for two weeks from 22 October. The Unite Union said no jobs would be lost as hours would be banked.
09 Oct 2018, 09:25:00 AM IST
Sadbhav Infra shares gain 7% on arbitration award win
Shares of Sadbhav Infrastructure Projects Ltd rose as much as 6.9% to Rs 103 after the company said its unit won an arbitration award against NHAI for Rs 110.5 crore.
09 Oct 2018, 09:05:00 AM IST
Rupee edged higher against dollar
The Indian rupee opened marginally higher against the US dollar, tracking mixed Asian currencies. At 9.05am, the home currency was trading at 73.92 a dollar, up 0.20% from its Monday’s close of 74.07. The currency opened at 73.85 against dollar. The 10-year gilt yield stood at 7.986% from its previous close of 7.975%. So far this year rupee has declined 13.6%, while foreign investors have sold $3.42 billion and $7.25 billion in the equity and debt markets, respectively.
09 Oct 2018, 08:50:00 AM IST
Are valuations of large-caps reasonable post the mayhem?
IMF said that trade policy tensions and the imposition of import tariffs were taking a toll on commercehttps://t.co/R1Llh84y58
Commodity corner: Oil prices steady at near $84 per barrel, gold gains
Oil: Oil prices held little changed, as more evidence emerged that crude exports from Iran are declining in the run-up to the reimposition of U.S. sanctions, while a hurricane moved across the Gulf of Mexico. Brent crude was down 7 cents at $83.84 a barrel. On Monday, Brent fell to a low of $82.66, but mostly recovered as investors bet China’s economic stimulus would boost crude demand. Brent hit a four-year high of $86.74 last week. US crude was down by 1 cent at $74.28 a barrel, having fallen as low as $73.07 in the previous session to close the day just 5 cents lower.Metals: London aluminium dropped in early Asian deals to trade near one-week lows hit in the previous session, as worries over supply of raw material alumina eased after a Brazilian court approved measures that could allow the world’s biggest alumina refinery to resume production. Three-month LME aluminium was down 0.3% at $2,061 a tonne. The metal has fallen 9% since touching a 3-1/2-month peak of $2,267 on Thursday. LME copper added 0.2% to $6,190.50 a tonne and zinc gained 0.2% to $2,620.Gold: Global gold prices edged higher, drawing some safe-haven bids from risk-averse investors as Asian stocks fell amid worries over a potential slowdown in China’s economic growth. Spot gold was up 0.1% at $1,189.23 an ounce. It fell 1.2% on Monday. US gold futures rose 0.3% to $1,192.70 an ounce. Reuters
09 Oct 2018, 08:27:00 AM IST
Opening bell: Cues to look out for before trading today
■ The Dow rose for the first time in three days on Monday, but its gains were kept in check as investors continued to fret over a sharp rise in interest rates. Asia markets were lower in the morning following a mixed finish on Wall Street.■ GMR Infrastructure Ltd (GIL) said it has settled an ongoing arbitration with the private equity (PE) investors in its airport business GMR Airports Ltd (GAL), a move that is expected to clear the decks for GAL’s initial public offer (IPO).■ Crisis-hit Infrastructure Leasing and Financial Services (IL&FS) may require impairments of around ₹ 15,000 crore in loans and equity in its subsidiaries, said a report by Singapore-based REDD Intelligence.■ Britain’s biggest carmaker Jaguar Land Rover will close its Solihull plant for two weeks later this month after it reported a nearly 50% fall in sales to China as import duties and a trade war with the United States hurt demand.■ Larsen & Toubro (L&T) said the power transmission and distribution business of its arm L&T Construction has bagged orders worth Rs 1,881 crore in the domestic and international markets.■ The country’s largest carmaker Maruti Suzuki India (MSI) Monday said the latest version of its sub compact sedan Dzire has crossed three lakh cumulative sales milestone in 17 months from the launch.■ A spate of money market defaults by Infrastructure Leasing & Financial Services Ltd has put the spotlight on non-bank finance companies.■ Shares of Aavas Financiers Ltd made a weak debut on Monday, with its shares opening 7.7% lower on the BSE at Rs 758 a piece , compared to the issue price of Rs 821.■ Accenture Plc reported 13.5% growth and added $4.72 billion in incremental revenue in the financial year ended August 2018, a shade lower than the combined $4.78 billion new revenue of Tata Consultancy Services Ltd (TCS), Cognizant Technology Solutions Corp, Infosys Ltd, Wipro Ltd and HCL Technologies Ltd. Harsha Jethmalani/MintWith inputs from Reuters