Closing bell: Sensex sinks 509 points, Nifty settles at 11287
14 min read.Updated: 12 Sep 2018, 09:30 AM ISTNirav Vyas
BSE Sensex closed 509.04 points down at 37,413.13, while the Nifty 50 ended 150.60 points lower at 11,287.50. Here are the highlights from the markets
Mumbai: BSE Sensex and NSE’s Nifty 50 fell over 15 for the second straight day on Tuesday as persistent trade frictions and turmoil in emerging markets continue to mar the outlook for global equities. In global markets, European stocks fell with US futures after a mixed session in Asia as fears grew over trade relations among the world’s biggest economies. Market sentiment that’s underpinned by optimism on US-EU trade relations is undermined by a still cloudy scenario for emerging-market stocks and currencies. Moreover, continued capital outflow also added pressure. On Monday, FIIs sold shares worth Rs 841.68 crore on net basis, while DIIs unloaded equities worth Rs 289.66 crore, provisional data showed. Here are the latest updates from the markets:
11 Sep 2018, 03:35:00 PM IST
Closing bell: Sensex, Nifty fall over 1%
BSE Sensex closed lower by 509.04 points, or 1.34%, to 37,413.13, while the Nifty 50 fell 150.60 points, or 1.32%, to close at 11,287.50. On Monday, the Sensex lost 467.65 points and the Nifty 50 shed 151 points. Both indices marked their worst closing levels since 2 August.BSE MidCap and SmallCap fell 1.36% and 1.37%, respectively. Among the sectoral indices on BSE, consumer durables, FMCG and telecom declined over 2%. Realty, metal, basic materials, auto and healthcare fell over 1.5%.Coal India, NTPC, Mahindra and Infosys were among the top gainers, whereas Tata Steel, ITC, Titan and Tata Motors were among the major losers.Also Read:Investors lose Rs 4 lakh crore in 2 days as Sensex slumps nearly 1,000 points
11 Sep 2018, 03:23:00 PM IST
Sebi says will not let manipulators cash in on market volatility
The Securities and Exchange Board of India (Sebi) warned that the manipulators will not be allowed to take advantage of the volatility in the stock market. “The domestic markets are volatile, but they are globally volatile too. Our risk management economics are in place and manipulators will not be allowed to take advantage,” Sebi chairman Ajay Tyagi told reporters on the sidelines of a capital market conference here. “The regulator is vigilant,” he added.Commenting on implementation of time extension for equity derivatives, Tyagi said we have received basic proposals but are awaiting details from the exchanges. Sebi had earlier allowed domestic stock exchanges to extend timing for equity derivatives trading till 11.55pm with effect from 1 October. PTI
11 Sep 2018, 03:10:00 PM IST
Rupee sinks to fresh record low of 72.7 a dollar
The Indian rupee on Tuesday erased all the gains and touched a fresh record low against US dollar after local equity markets fell over 450 points ahead of key retail inflation. At 3.08pm, the rupee was trading at 72.72 a dollar, down 0.38% from its Monday’s close of 72.45. The home currency opened at 72.30 per dollar.Bond yield spiked further tracking weakness in the currency. The 10-year bond yield stood at 8.174%, from its previous close of 8.158%. Bond yields and prices move in opposite directions. So far this year, the rupee has weakened 12%, while foreign investors have sold $405.60 million and $6.34 billion in equity and debt markets, respectively. Read more
11 Sep 2018, 02:57:00 PM IST
Power Finance Corp. shares fall 8% after quarterly results
Power Finance Corp. Ltd reported a profit of Rs 1,373 crore in the quarter ended 30 June, compared to a profit of Rs 1,122 crore a year ago. Total revenue from operations rose to Rs 7,028 crore in the quarter, compared to Rs 6,729 crore in the same period last year. PFC shares fell as much as 8.42% to Rs 81.
11 Sep 2018, 02:50:00 PM IST
ICICI Bank says no notice received from I-T Department
ICICI Bank Ltd clarified that the bank has not received any notice from the Income Tax Department in connection with Videocon loan case. The bank’s response came after The Indian Express reported that the I-T Department has launched a probe into a 2010 real estate transaction between the bank and Videocon. Shares traded 0.68% lower at Rs 330.80.
11 Sep 2018, 02:35:00 PM IST
Moody’s sees no immediate risk to India’s credit profile on rupee fall
The sharp depreciation in rupee’s valuation is unlikely to impact India’s sovereign credit profile as rupee-denominated government bonds and robust foreign exchange reserves mitigate the risk, William Foster, vice president—Sovereign Risk Group—at Moody’s Investors Service told Mint today.
The sharp depreciation in rupee's valuation is unlikely to impact India's sovereign credit profile as rupee-denominated government bonds and robust foreign exchange reserves mitigate the risk, William Foster, vice president at Moody's Investors Service. https://t.co/pSamOE20QG
Mutual funds garner Rs 7,600 crore via SIPs in August
Retail investors are increasingly opting for systematic investment plans (SIPs) in mutual funds as the industry garnered over Rs 7,600 crore through this route in August, a surge of 47% from the year-ago period. With this, total funds garnered through SIPs has reached to Rs 36,760 crore in the current fiscal so far (April-August), according to the data available with Association of Mutual Funds in India (Amfi). In the entire 2017-18, over 67,000 crore was mopped-up through SIP route and more than Rs 43,900 crore in the preceding fiscal. PTI
11 Sep 2018, 01:35:00 PM IST
European stocks mostly firm at open
Europe’s stock markets mostly rose in opening trade on Tuesday, with Frankfurt and Paris climbing, though London lost ground. In initial deals, the British capital’s benchmark FTSE 100 index of major blue-chip companies was down 0.1 percent at 7,269.34 points. In the eurozone, Frankfurt’s DAX 30 added 0.2 percent to 12,013.01 points and the Paris CAC 40 rose 0.3 percent to 5,284.24 compared with the closing levels on Monday. AFP
11 Sep 2018, 01:07:00 PM IST
ICICI Securities shares rise as Citi initiates coverage with ‘buy’
Shares of ICICI Securities gained as much as 3.1% to Rs 337.45, their highest in over a week, after Citi Research initiated coverage with “buy” rating and TP of Rs 425. Citi expects ICICI Securities to be the key beneficiary of shift to financial avenues of savings from physical avenues such as real estate and gold. Cross-selling to ICICI Bank customers can drive growth in client base, noted Citi. Reuters
11 Sep 2018, 12:52:00 PM IST
DBS Bank, UBS Securities, Barclays cut their rupee forecast
As the Indian rupee continues to slide to a fresh record low, analysts rushed to rework their forecasts. Lenders including DBS Bank, UBS Securities and Barclays are now predicting the currency will slide to as weak as 75 per dollar.India’s trade deficit for August is likely to remain at $17 billion to $18 billion, while the Federal Reserve is set to raise rates again this month, both of which will weigh on the rupee, Philip Wee, a senior currency strategist at DBS Bank, wrote in a note.UBS Securities India cut its year-end forecast to 73 from 66, while Scotiabank sees the rupee approaching 74 in the run up to the Fed meeting.“In the near-term, if external emerging market risks do not ease or trade protectionism rises further, the rupee could weaken well past our FY19 year-end forecast,” UBS analysts Tanvee Gupta Jain and Rohit Arora wrote in a recent note. A stock take of the RBI’s policy toolkit suggests it has limited options to meaningfully influence the rupee’s near-term direction, meaning the currency will remain vulnerable to swings in global sentiment, Barclays said in a research note. Bloomberg
Rupee as of Monday’s close. Graphic: Mint
11 Sep 2018, 12:25:00 PM IST
Benefit of rupee fall to vary across Indian IT companies, says Macquarie
Macquarie Research said benefits from the rupee depreciation will be different across Indian IT companies, with maximum positive impact on Tata Consultancy Services Ltd and Tech Mahindra Ltd among large caps and Persistent Systems Ltd among midcaps. Macquarie upgrades Wipro Ltd and Hexaware Technologies Ltd to “outperform”. Top picks are HCL Technologies Ltd and TCS (in large caps) and Larsen & Toubro Infotech Ltd (in midcaps).The brokerage expects companies to retain some benefits of a falling rupee and use the rest to increase SG&A efforts and fight pricing pressures on renewals. While midcap companies will grow much faster than overall industry growth rate of about 8%, growth in large caps will have varying trends in FY19, noted Macquarie analysts. The brokerage expects TCS to post strongest organic growth of 10.1% against 5-8% for its peers in FY19.Twenty out of 43 analysts rate Wipro “hold”, 16 rate “sell” or lower, and seven rate “buy” or higher, according to Thomson Reuters data. On Hexaware, 11 out of 19 analysts rate “sell” or lower, six rate “buy” or higher, 2 “hold”.Wipro shares have gained 3.4% this year as of last close, while Hexaware shares climbed 33.8% in the same period. TCS has gained 54% this year as of last close, while Tech Mahindra has risen 52%. Reuters
11 Sep 2018, 12:03:00 PM IST
ACME Solar in talks to raise up to ₹3,000 crore through InvIT
ACME Solar Holdings Ltd plans to raise up to ₹3,000 crore through an infrastructure investment trust (InvIT) amid a prolonged delay in a planned initial share sale. ACME Solar had in September 2017 filed a so-called draft red herring prospectus to raise about ₹2,200 crore through an IPO. The company plans to re-file the DRHP. Read more
11 Sep 2018, 11:47:00 AM IST
Suzlon Energy inks JV with CLP India
Suzlon Energy Ltd announced a joint venture with CLP India for two solar projects with of 50 megawatt (MW) and 20 megawatt (MW) in Dhule, Maharashtra. CLP India has the option to acquire the balance 51 per cent stake in the future, it added. CLP India is the wholly-owned subsidiary of Hong Kong Stock Exchange listed CLP Holdings Ltd. It is one of the largest foreign investors in the Indian power sector with a total committed investment of over Rs 14,500 crore. Suzlon Energy shares were trading flat at Rs 7.12.
11 Sep 2018, 11:16:00 AM IST
August total domestic passenger vehicle sales down 2%: SIAM
August total domestic passenger vehicle sales stood at 287,186 vehicles, down 2.46 percent from a year ago, according to data from Society of Indian Automobile Manufacturers. August domestic passenger car sales fell 1.03% to 196,847 units. August commercial vehicle sales rose 29.56% to 84,668 vehicles. August two-wheeler sales were up 2.91% at 1946,811 vehicles, SIAM data showed. The Nifty Auto Index rose 0.43% led by Mahindra, which was up 2.28%.
11 Sep 2018, 11:08:00 AM IST
BPCL to skip Iran oil purchases in October: Reuters
Bharat Petroleum Corp. Ltd will skip purchase of Iranian oil in October due to turnaround at its plants, Reuters reported, citing a source privy to the plan. The refiner will, however, lift 1 million barrels of Iranian oil this month, said the source, who did not wish to be identified. BPCL has changed a crude mix for its 240,000 barrels per day (bpd) Mumbai refinery after shutting down the fire-hit hydrocracker unit last month to optimise its processing and output of refined products, said the source. BPCL shares traded 0.61% up at Rs 347.25.
11 Sep 2018, 10:52:00 AM IST
Axis Bank shares extend gains, rise 2% today
Axis Bank shares extended gains today. The stock rose as much as 2.06% to Rs 665. The bank on Saturday said it had received the Reserve Bank of India’s approval to appoint Amitabh Chaudhry as the managing director and chief executive officer for a period of three years. Chaudhry’s term will be effective from 1 January 2019 up to 31 December 2021.
What does Amitabh Chaudhry bring to the table and what changes can one expect at the lender given that an outsider will be at the helm? https://t.co/Ifys4VNleY
Morgan Stanley sees strong upside for financial sector over next 12 months
Morgan Stanley sees strong 27 pct upside for the financial sector over the next 12 months and expects strong earnings progression, but multiples are rich – implying less room for re-rating. The brokerage forecast market capitalization of financial sector to grow to $1.8 trillion in next 10 years, and share in India market cap to increase from ~22% currently to 30% by 2027.Morgan Stanley says corporate lenders are coming out of an NPL cycle, and expects them to start reporting strong revenue growth, which will likely create a shift in performance and, hence, ownership.The brokerage expects lenders with rich liquidity, leverage to corporate credit cycle, and enough pricing power to do well in current cycle; prefer banks, NBFCs, HFCs in that order.Top bank picks are ICICI Bank Ltd, HDFC Bank Ltd, State Bank of India and Axis Bank Ltd. Valuations are attractive and if rates remain high, net interest margins should do well or allow banks to price out other players from higher-quality loans, noted Morgan Stanley.The brokerage downgrades Kotak Mahindra Bank and Yes Bank to equal-weight, downgrades Bank of Baroda to ‘under-weight’.It said prefer relatively strong liability franchises, such as Housing Development Finance Corp Ltd and those with pricing power in target segments and at reasonable valuations, such as Shriram Transport Finance Co, Mahindra and Mahindra Financial Services, while Bajaj Finance is positioned well, but valuation is expensive.The brokerage is structurally bullish on opportunity in asset management space in India. Following strong growth in recent years, inflows are slowing, however it expect industry to sustain equity AUM CAGR of ~20 pct over next 3 years. Reuters
11 Sep 2018, 10:06:00 AM IST
Infosys shares rise over 1%; UBS raises PT
UBS raised the price target on India’s second-largest software services exporter Infosys Ltd to Rs 865 from Rs 737.50, maintaining “buy” rating. “Expect revenue acceleration in FY19, driven by an easing drag from retail and a modest improvement in banking in Q2-4 FY19,” wrote UBS analysts in a note. Infosys shares rose as much as 1.66% to Rs 744.15 per share today. The stock has risen over 41% this year as of last close.UBS further said market still wary of expecting meaningful medium-term revenue acceleration for Infosys, and the stock’s recent rally is largely led by depreciating rupee. For Infosys, attrition remains a challenge, senior management retention is key, given loss of two business unit heads in six months, added UBS. Positive contract win momentum in FY19 likely to be a lead indicator of revenue pick-up, said UBS.Thirty-four of 45 brokerages rate the stock “buy” or higher, eight “hold” and three “sell” or lower; their median PT is 710 rupees, according to Thomson Reuters data. Reuters
11 Sep 2018, 09:55:00 AM IST
India turns epicentre of emerging markets rout
India became the focal point of an emerging markets (EMs) rout on Monday after months of managing to stay on the periphery. The Indian rupee is the worst performing emerging markets currency, declining 11% year to date against the dollar. Ripple effects of the depreciating rupee were felt across equities and bond markets as well. Read more
11 Sep 2018, 09:40:00 AM IST
Yes Bank raises $400 million via syndicated loan facility
Yes Bank Ltd shares traded 0.54% up at Rs 325.50 after the bank said that it has raised $400 million through a syndicated loan facility. The bank said it plans to use the loan to support the growing business of its IFSC banking unit.
11 Sep 2018, 09:30:00 AM IST
Sun Pharma shares rise over 1% on acquisition
Sun Pharma shares rose as much as 1.48% to Rs 649 after the company said it will acquire 18.75% stake in Israel based Tarsius Pharma for $3 million. The company is an early-stage research and development company focusing on development of drug candidates in the field of Ophthalmology. However, gains were capped over a report that the USFDA is conducting inspections at the Mohali plant, Mint reported. Read more
11 Sep 2018, 09:23:00 AM IST
Jaiprakash Associates shares fall after ICICI Bank insolvency petition
Shares of Jaiprakash Associates Ltd fell 3% to Rs 10.35 after ICICI Bank filed bankruptcy petition against the company. The company says it has 7 days to reply to ICICI Bank’s petition. If NCLT allows the plea of the ICICI bank, then this will be the second company of the crisis hit Jaypee group facing insolvency.
11 Sep 2018, 09:18:00 AM IST
Rupee trades flat against US dollar
The Indian rupee opened marginally stronger, but soon erased all gains and was trading little changed against the US dollar as traders await key inflation data and government measures to halt decline in the currency. At 9.10am, the rupee was trading at 72.42 a dollar, up 0.02% from its Monday’s close of 72.45. The home currency opened at 72.30 per dollar and touched a high and a low of 72.28 and 72.44, respectively. So far this year, the rupee has weakened 11.85%, while foreign investors have sold $405.60 million and $6.34 billion in equity and debt markets, respectively.
11 Sep 2018, 09:05:00 AM IST
Oscar Wilde, the fall of the rupee and the nervous stock markets
On a year-to-date basis, the rupee has now lost more than 13% against the dollar and is among the worst performing emerging market currencies.
On a year-to-date basis, the rupee has now lost more than 13% against the dollar and is among the worst performing emerging market currencieshttps://t.co/PdLL8SqrxC
Gold prices inched lower as the dollar firmed on worries over a potential new trade action from the US against China and expectations of a US interest rate increase this month by the Federal Reserve. Spot gold was down 0.1 percent at $1,194.30. US gold futures were mostly steady at $1,199.60 an ounce.Oil prices were steady, supported by looming US sanctions against Iran’s petroleum industry. But prices were capped by signs that increased supplies by other major producers, including US and Saudi Arabia, could make up for the disruptions from Iran. US WTI crude futures were at $67.61 per barrel, up 7 cents from their last settlement. Brent crude futures climbed 11 cents to $77.48 a barrel.Metals: LME copper slid for a second session on Tuesday as an intensifying trade dispute between the United States and China raised concerns over demand for industrial metals. Three-month copper on the LME was down 0.3 percent at $5,892 a tonne, while the most-traded copper contract on the Shanghai Futures Exchange added 0.1 percent to $6,945.09 a tonne. Reuters
11 Sep 2018, 08:50:00 AM IST
Opening bell: Cues to look out for before trading today
■ Overnight, US markets closed in green. S&P 500 rose 0.19% to 2,877 helped by recovery in technology shares. Asian markets are little changed in morning trade.■ ArcelorMittal SA sharply raised its bid to acquire debt-laden Essar Steel Ltd to ₹42,000, said a person with direct knowledge of the matter. The company had earlier offered ₹30,500 crore for Essar Steel, reports Mint.■ Two days after the US Food and Drug Administration (FDA) issued observations at Sun Pharmaceutical Industries Ltd’s Halol manufacturing facility, the regulator found breaches of manufacturing standards at the company’s Mohali plant.■ Private sector lender ICICI Bank has filed insolvency petition against Jaiprakash Associates before the National Company Law Tribunal.■ SpiceJet, which has air freight business under the brand name SpiceXpress, is betting on the increasing popularity of next-day delivery services that e-commerce firms are offering to customers, reports Business Standard.■ Real estate firm Kalpataru Ltd has entered into a joint development agreement with pipe manufacturer Indian Hume Pipe Co. Ltd, to develop a 15-acre land parcel for a residential project in suburban Pune. R. Sree Ram/MintWith inputs from Reuters