10 min read.Updated: 09 Oct 2018, 03:57 PM ISTNirav Vyas
The BSE Sensex closed 97.39 points up at 34,474.38, while the Nifty 50 settled 31.60 points higher at 10,348.05. Here are the highlights from the markets
Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 gained on Monday after a volatile session, breaking a three-day losing streak helped by Reliance Industries and banking stocks such as Yes Bank. Gains were capped by losses in shares of non-banking financial companies as RBI plans stricter regulation of NBFCs in order to avoid rollover risk. The rupee weakened past the 74/dollar mark after the Reserve Bank of India on Friday kept interest rates unchanged.In global markets, European markets fell sharply as investor confidence took a knock from last week’s spike in Treasury yields and from a Chinese market slump brought on by concerns that an escalating trade war with the United States could dent China’s growth. Oil prices dropped to around $83 a barrel, pressured by expectations that some Iranian oil exports will keep flowing after the U.S. reimposes sanctions. Here are the highlights from the markets:
BSE Sensex closed 97.39 points, or 0.28%, up at 34,474.38, while the Nifty 50 settled 31.60 points, or 0.31%, higher at 10,348.05. However, the BSE MidCap and SmallCap indices fall 1.99% and 2.01%, respectively.Among the sectoral indices on BSE, energy gained most at 4.38% followed by oil and gas, which was up 3.30%. Bankex, auto and telecom also posted gains. On the losing side, realty and metal fell over 3%. Basic materials, capital goods, industrials, IT and teck declined over 1%.HPCL, Yes Bank, Reliance, Hero MotoCorp and Kotak Bank were among the top gainers, whereas Vedanta, HDFC, Wipro, Hindalco and Axis Bank were among the major losers.
08 Oct 2018, 03:16:00 PM IST
Tata Elxsi shares fall 8% after quarterly results
Tata Elxsi Ltd reported a net profit of Rs 82.18 crore for the quarter ended September 30, compared to a profit of Rs 57.24 crore a year ago. Revenue from operations stood at Rs 403 crore in the September quarter, compared to Rs 342 crore in the same period last year. Shares fell 8.21% to Rs 1,046.50 per share on BSE.
08 Oct 2018, 02:38:00 PM IST
Metal stocks extend losses, Vedanta falls 11%
Shares of metal companies extended losses with the Nifty Metal Index losing nearly 5%. London aluminium prices fell as much as 4 percent on Monday after a Brazilian court approved emergency waste measures that could allow the world’s biggest alumina refinery to resume production, reported Reuters. Three-month LME aluminium was down 2.8% at $2,069.50 by 1.51pm.
08 Oct 2018, 02:31:00 PM IST
Market update: Sensex, Nifty fall 1%
BSE Sensex slumped 348.47 points, or 1.01%, to 34,028.52, while the Nifty 50 fell 99.40 points, or 0.96%, to 10,217.05. The BSE MidCap and SmallCap indices plunged 3.14% and 2.86%, respectively.All the sectoral indices on BSE, except energy and oil and gas, traded lower with metal and metal losing most at 5.03% and 4.40%, respectively.
08 Oct 2018, 02:00:00 PM IST
Steel Strips Wheels shares gain on export order
Steel Strips Wheels said that it has bagged an exports order from Egypt for 50,000 wheels. The order will generate additional revenue of $4.80 million, said the company in a BSE filing. Shares traded 1.30% up at Rs 1,030.10 per share.
08 Oct 2018, 01:42:00 PM IST
Gati shares fall after CARE cuts rating
Shares if logistics company Gati Ltd declined as much as 12.9% to Rs 70, their biggest intra-day percent fall since Sept. 28. CARE Ratings cut credit rating on the company’s long-term bank facilities to CARE BBB and short term ones to CARE A3+, the company said on Saturday. Rating cuts take into account decline in revenue from ops, “significant deterioration in PBILDT level (adjusted to non-cash income) and reduction in gross cash accruals during FY18,” CARE said. The ratings agency also raised concerns on the company’s debt levels.
08 Oct 2018, 01:30:00 PM IST
European shares fall as risk-off sentiment spreads
European shares started trading in negative territory as fears a trade war could have a bigger impact than expected on China added to concerns that rising U.S. interest rates are gradually making stock markets less attractive for investors. The pan-European STOXX 600 benchmark index was down 0.4%. Germany’s DAX also declined 0.6% and the UK’s FTSE fell 0.3%. Shares in Asia slumped overnight despite Beijing’s central bank increasing liquidity to offset the effects of the tariff row with the United States. Reuters
08 Oct 2018, 12:53:00 PM IST
Sensex gives up some gains, Vedanta shares slump 5%
The index was up 78 points at 34,455. Yes Bank, RIL, Hero MotoCorp, Kotak Mahindra Bank were among the top gainers in Sensex 30 stocks. Wipro, TCS and Tata Steel were among top losers. Vedanta shares were down nearly 5%.
08 Oct 2018, 12:45:00 PM IST
Cost of bearish NSE Nifty 50 Index options jumps to highest level since August 2017
The best-performing stock market in Asia for much of this year has lost that title in less than a monthhttps://t.co/bp3rgYAmIP
Yes Bank shares extended gains and surged as much as 10.40% to Rs 227.65 per share on BSE. The bank said its board of directors will meet on October 25. The bank on Friday said that it has finalised a search and selection committee to find a replacement for CEO Rana Kapoor.Meanwhile, Mint reported that Yes Bank Ltd’s estranged promoters—Rana Kapoor and Madhu Kapur —have initiated moves to reach an out-of-court settlement. Both sides have begun preliminary talks to withdraw a long-drawn and bitter legal case against each other and put an end to their decade-old feud, reported Mint, three people close to the development. Read more
08 Oct 2018, 11:55:00 AM IST
Motilal Oswal expects increased scrutiny on NBFCs; HDFC, L&T Finance top picks
“With increasing regulatory scrutiny on ALM, we expect NBFCs to ‘normalise’ their borrowing profile, i.e., migrate from opportunistic funding to more stable and sustainable funding. This would lead to a larger-than-expected increase in cost of funds. We believe this would have a twin impact on both margins and growth. We expect growth to taper down for some of the fastest growing NBFCs,” said Motilal Oswal Securities in a report.“However, we remain ardent supporters of the NBFC growth story given their vintage (most NBFCs under our coverage have been in the lending business for multiple decades), niche product and target segment and lack of participation from PSU Banks (due to multiple reasons) over the medium term. Also, different products have different average asset tenors,” it added.“We recommend investors to invest in companies with strong banking/financial relationships, good credit rating and reasonable pricing power,” Motilal Oswal analysts noted in the report. “Our top picks remain HDFC (>50% of value coming from subsidiaries – core business trading at 1.8x PBV), LTFH (loan book retailisation playing out well, trades at 1.5x BV for 18%+ ROE) and SHTF (strong play on CV revival and pricing power, Trade at 1.3x PBV with ROE of 17%+).”
08 Oct 2018, 11:28:00 AM IST
RIL shares rise over 5%
Shares of Reliance Industries rose as much as 5.49% to Rs 1,107.50 per share on BSE. RIL raised prices of at least seven key petrochemicals in the last quarter to offset higher crude oil prices and counter the effect of a weakening rupee, reported Mint. Bulk chemicals traders, suppliers for RIL’s petrochemical products and analysts tracking the company said it raised prices by 10-21% in the second quarter of this fiscal while year-on-year increase is 17-61%.Shares of other energy companies also traded higher, with the BSE Energy and Oil and Gas indices rising over 3%.
08 Oct 2018, 11:13:00 AM IST
Market update: Sensex, Nifty erase losses
BSE Sensex traded 155.32 points, or 0.45%, higher at 34,532.31, while the Nifty 50 rose 50.65 points, or 0.49%, to 10,367.10. However, the BSE MidCap and SmallCap indices fell 0.56% and 0.59%, respectively.Among the sectoral indices on BSE, energy gained most at 3.58% followed by oil and gas, which was up 2.78%. On the other hand, realty fell over 2% followed by metal and telecom, which declined over 1%.
08 Oct 2018, 10:46:00 AM IST
Metal stocks trade lower as aluminium prices fall
Share of metal prices traded lower with the Nifty Metal Index falling 2.4% dragged mainly by National Aluminium Co and Hindalco. London aluminium prices fell more than 2 percent on Monday after a Brazilian court approved emergency waste measures that could allow the world’s biggest alumina refinery to resume production, reported Reuters.
08 Oct 2018, 10:25:00 AM IST
Aavas Financiers shares fall 7% on stock market debut
Aavas Financiers shares opened at Rs 758 per share on BSE, down 7.67% from its issue price of Rs 821 per share. The Aavas Financiers IPO had the price band of Rs 818-821 and was subscribed 97%. At 10.22am, the stock was trading at Rs 738.60, down 2.77%. In intraday, the stock fell as much as 13.52% from its issue price to Rs 710 per share on BSE.
08 Oct 2018, 09:45:00 AM IST
OMC stocks trade higher after Jaitley says no going back on deregulation
Shares of oil marketing companies traded higher after finance minister Arun Jaitley said that the government would not go back to regulating fuel prices. HPCL shares were up 4.51% at Rs 172.50, BPCL rose 2.66% to Rs 272.40 and IOC gained 3.01% to Rs 121.60. “Let me categorically assure all that there is no going back on deregulation of oil prices,” India’s finance minister Arun Jaitley said in a Facebook post on Saturday.Shares of upstream and downstream companies eroded nearly Rs 1.25 trillion of their market valuation in the last two sessions after government asked the state-run companies to absorb Rs 1 for every litre of petrol and diesel sold. Read more
The market capitalization of the three OMCs has fallen by ₹75,781 crore in the past two trading sessionshttps://t.co/7v9XYduGfW
Yes Bank shares rise 3% as promoters seek settlement
Yes Bank shares rose as much as 3.78% to Rs 214 after Mint reported that Rana Kapoor and Madhu Kapur have initiated moves to reach an out-of-court settlement. Both sides have begun preliminary talks to withdraw a long-drawn and bitter legal case against each other and put an end to their decade-old feud.
08 Oct 2018, 09:22:00 AM IST
NBFC stocks trade lower
Shares of non-banking financial companies were trading lower after RBI failed to provide concrete solutions to resolve concerns over non-banking finance companies last week. Bajaj Finance Ltd 2.8%, Edelwiess Financial Services 4%, Dewan Housing Finance 3%, HDFC 2.4%, Cholamandalam Finance 2.3%, Striram Transport Finanance 2%, AU Small Finance 2%, L&T Finance 1.8%.
08 Oct 2018, 09:15:00 AM IST
Rupee opens against US dollar
The rupee opened weaker for fifth consecutive session against US dollar after the Reserve Bank of India kept interest rates on hold Friday, defying forecasts for an increase. At 9.15am, the home currency was trading at 73.88 a dollar, down 0.12% from its Friday’s close of 73.77. The currency opened at 73.96 against dollar and touched a low of 73.97. The 10-year gilt yield stood at 8.02% from its previous close of 8.025%. So far this year, the rupee has declined 13.4%, while foreign investors have sold $2.74 billion and $7.33 billion in the equity and debt markets, respectively.
08 Oct 2018, 08:46:00 AM IST
RBI woos foreign investors with new relationship terms
The best part is that the relationship will be voluntary, which is why it's called the “Voluntary Retention Route'https://t.co/kHYlEvptUY
Commodity corner: Oil prices fall over 1%, gold rates edge lower
Oil: Brent crude oil prices fell by more than 1% after Washington said it may grant waivers to sanctions against Iran’s oil exports next month, and as Saudi Arabia was said to be replacing any potential shortfall from Iran. Brent crude oil futures were at $83.25 per barrel, down 91 cents, or 1.1%, from their last close. U.S. WTI crude futures were down 57 cents, or 0.8%, at $73.77 a barrel.Gold: Global gold prices inched lower as the dollar firmed after China’s central bank eased its domestic policy to support the economy. Spot gold was down 0.2% at $1,200.31 an ounce. It gained 0.9% last week. US gold futures fell 0.1% to $1,204.40 an ounce.Metals: London aluminium prices fell more than 2 percent on Monday after a Brazilian court approved emergency waste measures that could allow the world’s biggest alumina refinery to resume production. LME aluminium fell for a third session, dropping 2.2% to its weakest in four sessions at $2,083.50 a tonne. LME copper prices drifted up 0.3% to $6,194 a tonne. Reuters
08 Oct 2018, 08:23:00 AM IST
Opening bell: Cues to look out for before trading today
■ US stocks fell on Friday after the release of mixed employment data jolted interest rates higher. Asia markets decline in morning trade■ Reliance Industries Ltd (RIL) raised prices of at least seven key petrochemicals in the last quarter to offset higher crude oil prices and counter the effect of a weakening rupee.■ Yes Bank Ltd’s estranged promoters—Rana Kapoor and Madhu Kapur —have initiated moves to reach an out-of-court settlement, reported Mint, citing three people close to the development.■ With the Supreme Court directing Numetal Mauritius and ArcelorMittal to settle unpaid liabilities of all connected parties to become eligible bidders for Essar Steel, a swift resolution may be out of sight for now.■ A weak broader market pulled down the combined market valuation of the top 10 most valued Indian companies by a whopping Rs 2,55,995 crore last week, with RIL taking the steepest hit. ■ The newly constituted board of the beleaguered IL&FS under the chairmanship of Uday Kotak may meet this week again to chalk out the future course of action to resolve the current financial crisis, according to a source. ■ Finance minister Arun Jaitley promised more steps to stabilize the rupee and to reduce current account deficit (CAD) and assured businessmen that India would be agile in its response to global trends impacting the economy.■ In a major setback for utility vehicle (UV) maker Mahindra and Mahindra Ltd (M&M), a US district court in Michigan denied the company’s motion for a preliminary injunction that would have prevented Fiat Chrysler Automobiles (FCA) US LLC from bringing a complaint against it in the US’s International Trade Commission (USITC). Read more.■ Indian companies raised Rs 12,470 crore through initial public offerings in April-September this fiscal, a plunge of 53 per cent from the year-ago period, mainly due to volatile equity markets and uncertainties in macro environment.■ Housing finance company Aavas Financiers, which raised Rs 1,734 crore through an initial public offering recently, will list its shares on the exchanges on Monday. Harsha Jethmalani/MintWith inputs from Reuters