9 min read.Updated: 02 Jan 2019, 05:18 PM ISTNirav Vyas
The BSE Sensex closed 363.05 points, or 1%, down at 35,891.52, and the Nifty 50 ended 117.60 points, or 1.08%, lower at 10,792.50. Here are the latest updates from the markets
Mumbai: Indian benchmark indices declined over 1% on Wednesday amid negative cues from global markets, and as investors turned cautious ahead of corporate earnings beginning next week. Moreover, concerns of global growth outlook and uncertainty ahead of 2019 general elections in India also added volatility. The BSE Sensex closed 363.05 points, or 1%, down at 35,891.52, and the Nifty 50 ended 117.60 points, or 1.08%, lower at 10,792.50 dragged mainly by losses in auto and metal stocks.Shares of auto companies such as Eicher Motors, TVS Motor and M&M, declined 4% to 9% over weak December vehicles sales data. Metal stocks also declined with the Nifty Metal Index falling over 3% as global base metal prices fall amid disappointing Chinese growth data. Shares of IT companies advanced today as the Indian rupee fell over 1% to below 70 per dollar mark.The BSE midcap and smallcap indices were down 1.26% and 0.74%, respectively. All the sectoral indices on BSE, barring IT and teck, posted losses with metal and auto falling over 3%. Consumption, basic materials and utilities fell around 1.8%.Sun Pharma, TCS, Asian Paints, Infosys, Yes Bank and ICICI Bank were among the major losers on the key indices, whereas Vedanta, Eicher Motors, Tata Steel, M&M and JSW Steel were among the top losers.In global markets, world shares started 2019 on a downbeat note, with stocks plunging across Europe and Asia along with US equity futures after evidence of slowing Chinese growth dampened investor sentiment. Oil prices fell by around 1 percent in 2019’s first trading, dragged by surging output in US and Russia, and concerns about on an economic slowdown. Here are the latest updates from the markets:
02 Jan 2019, 03:38:00 PM IST
Closing bell: Sensex, Nifty fall over 1%
The BSE Sensex closed 363.05 points, or 1%, down at 35,891.52, and the Nifty 50 ended 117.60 points, or 1.08%, lower at 10,792.50.
02 Jan 2019, 02:45:00 PM IST
Jet Airways shares extend losses
Jet Airways shares traded 4.68% lower at Rs 267.90 per share. Intraday, the stock fell as much as 5.7% to Rs 265 per share. Jet Airways said on Tuesday that it defaulted on debt payment to a consortium of Indian banks, prompting ratings agency ICRA to downgrade the carrier and sending its shares sharply lower. The payment of interest and principal instalment was delayed “due to temporary cash flow mismatch”, Jet said in a statement, adding that it was in talks with the consortium led by State Bank of India. The deadline for payment was Monday, Dec. 31.ICRA cut Jet’s long- and short-term ratings on Wednesday, citing the payment delays. Timely implementation of liquidity initiatives, including equity infusion and a stake sale in the airline’s loyalty programme Jet Privilege, will be critical to the company’s credit profile, ICRA said.
02 Jan 2019, 02:23:00 PM IST
Eicher Motors shares down 7.5%
Shares of Eicher Motors Ltd fell over 7% today after the company said total sales of its Royal Enfield two-wheeler division declined 13% to 58,278 units in December, compared to 66,968 units in the same period last year. Eicher Motors shares slumped as much as 7.5% intraday to Rs 21,455 per share on the NSE. At 2.02pm, the stock traded 7.4% lower at Rs 21,478.95 per share, whine the Nifty 50 Index was down 144.95 points at 10,765.15.“This weakness in demand might continue in near future, considering the substantial increase in cost of ownership (insurance, rear disc brake and ABS related) and Jawa has emerged as a reasonable alternative for potential RE customers,” said Motilal Oswal in a research note. The brokerage lowered volume estimates for RE for FY19/20 to 846k/919k. It maintained a “buy” rating on the stock, with the TP of Rs 24,760 per share.
02 Jan 2019, 01:55:00 PM IST
Rupee trades at 70 per dollar
The rupee fell sharply today against the US dollar amid weak domestic equities. The rupee hit a low of 70.02 against the US dollar in the afternoon trade, down 58 paise from its previous close of 69.43. The currency opened at 69.63 a dollar, and hit a high of 69.55. The rupee had appreciated by 34 paise on Tuesday to hit a five-month high against the US dollar.
02 Jan 2019, 01:46:00 PM IST
Oil prices fall over 1% on 2019’s first trading
Oil markets slid by around one percent in 2019’s first trading on Wednesday, pulled down by surging output in the United States and Russia and concerns about on an economic slowdown, especially in Asia’s main growth region of China. Brent crude futures were at $53.22 per barrel, down 58 cents, or 1.1%, from their final close of 2018. WTI futures were at $44.89 per barrel, down 52 cents, or 1.2%.Oil prices ended 2018 lower for the first time since 2015, after a desultory fourth quarter that saw buyers flee the market over growing worries about too much supply and mixed signals related to renewed U.S. sanctions on Iran. Reuters
02 Jan 2019, 01:06:00 PM IST
Predictions 2019: GDP, inflation, Sensex, bond yields and gold
What experts have to say about GDP, inflation, Sensex, bond yields and gold price outlook in 2019https://t.co/d9Fokfcs6d
The BSE Sensex fell 223.24 points, or 0.62%, to 36,031.33, and the Nifty 50 was down 67.70 points, or 0.62%, to 10,842.40. The BSE midcap and smallcap indices declined 0.47% and 0.17%, respectively. Barring IT and teck, all the sectoral indices on BSE traded in negative territory with metal and auto losing over 2%. Consumption, utilities and oil and gas fell over 1%. IT an teck rose around 0.5%.
02 Jan 2019, 12:12:00 PM IST
Analysts’ views on markets
Siddharth Sedani, head of equity advisory at Anand Rathi Financial Services: “There is lack of volume (in Indian shares) and we’re very close to the recent highs, leading to some profit-booking.” “The earnings season will give some triggers ... we should be around 11,000 levels before it begins,” he added, referring to the broader Nifty.Chokkalingam G, managing director at Equinomics Research & Advisory: “Lower tax collection and weak monthly vehicle sales are a matter of concern. The only factor working in favor of India is lower oil prices. With most large cap sectors struggling with its own set of problems, we prefer small and mid cap companies, some of which are into unique single product, and offer a great opportunity.”
02 Jan 2019, 11:46:00 AM IST
Hero MotoCorp shares fall 2% as sales decline in December
Hero MotoCorp Ltd said its December total sales fell 3.9% to 453,985 units from 472,731 units last year. The company said its cumulative sales in the nine month period rose to 6,037,901 units. Chairman Pawan Munjal said increased insurance costs ahead of Diwali and prevailing liquidity situation affected growth momentum. “The cost of two-wheelers will further go up once the new set of regulations around safety comes into force, followed by the transition to BS-VI emission norms,” he added.“Given that two-wheelers provide basic mobility to the masses, there is an urgent need to reduce the GST rate on two-wheelers from the 28% bracket of ‘luxury goods’ to that of 18% for mass usage items,” said Munjal. Shares fell as much as 2.5% to Rs 3050 per share.
02 Jan 2019, 11:03:00 AM IST
Indian manufacturing PMI declined in December
Indian manufacturing activity expanded at a slower pace in December as growth in new orders and output waned, despite factories cutting their prices, a private survey showed on Wednesday. The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, declined to 53.2 in December, below November’s 54.0 reading and a Reuters poll median of 53.6. But that was above the 50 mark, which separates growth from contraction, for a 17th month and manufacturing activity registered its strongest quarterly performance since late 2012.The manufacturing PMI “indicated that the sector ended 2018 on a high, with growth stronger than seen at the start of the year,” noted Pollyanna De Lima, principal economist at IHS Markit. “Output continued to rise strongly, in line with a robust upswing in sales. Companies benefited from rising international demand for Indian goods, as export orders expanded for the fourteenth straight month.” Reuters
02 Jan 2019, 10:25:00 AM IST
NMDC shares rise 4% on share buyback proposal
NMDC shares rose as much as 3.9% to Rs 99.50 per share after the company on Tuesday said it board will consider a share buyback proposal at a Jan 8 meeting.
02 Jan 2019, 09:55:00 AM IST
Auto stocks trade lower after December sales data
Shares of auto companies traded lower, with the Nifty Auto Index falling over 1%, following lower-than-expected vehicles sales data for December 2018 despite the festival season. Eicher Motors shares fell over 5% and M&M declined over 3%. Ashok Leyland and Tata Motors fell over 1%.
02 Jan 2019, 09:30:00 AM IST
Eicher Motors shares slump over 5% on December sales data
Eicher Motors shares fell as much as 5.65% to Rs 21,873.25 after the company’s total motorcycles sales declined 13% to 58,278 units in December 2018, from 66,968 units last year. December total exports rose to 2,252 units compared to 1,601 units a year ago.Eicher Motors on Tuesday said it sold 6,113 buses and trucks in December 2018 as compared to 5,995 units in the year-ago period. According to Eicher, Volvo Trucks India’s sold 123 vehicles in the month under consideration as against 132 vehicles last year.
02 Jan 2019, 09:23:00 AM IST
Jet Airways shares fall 3% on defaults on debt payments
Jet Airways shares fell as much as 3.39% to Rs 271.50 per share after the company disclosed that it has delayed the payment to a consortium of Indian banks, led by State Bank of India. The payment of interest and principal instalment was delayed “due to temporary cash flow mismatch” and the company is in talks with the consortium. The deadline for the payment was Dec. 31, 2018, Jet said in a statement.
02 Jan 2019, 09:13:00 AM IST
Rupee falls against US dollar
The Indian rupee weakened against the US dollar as dealers are concerned about slowing global growth and foreign fund outflows from Indian debt and stock markets. At 9.10am, the rupee was trading at 69.59 dollar, down 0.23% from its previous close of 69.44. The currency opened at 69.63 a dollar, touching a high 69.55 and a low 69.64. The 10-year bond yield stood at 7.397%, from its Tuesday’s close of 7.418%.
02 Jan 2019, 08:54:00 AM IST
Commodity corner: Oil prices recover; Gold, metals fall
Oil markets reversed early gains on Wednesday to fall on the back of surging U.S. crude production and concerns of an economic slowdown in 2019. International Brent crude futures were at $53.65 per barrel, down 15 cents, or 0.3%, from their final close of 2018. WTI spot crude oil futures were at $45.34 per barrel, down 7 cents, or 0.1%.Metals: Copper slid for a second session on Wednesday as the market kicked off 2019 trading with concerns over China’s economic growth weighing on prices. Three-month LME copper was down 0.1% at $5,957 a tonne, and the most-traded contract in Shanghai dropped 0.6% to $6,982.51 a tonne.Gold prices edged lower as Asian equities won support on the first day of the new year from gains in U.S. stock futures, pointing to an improvement in risk appetite. Spot gold fell 0.2% to $1,279.31 per ounce. The metal was not far off Monday’s more than six-month high of $1,284.09. US gold futures were little changed at $1,281 per ounce. Reuters
02 Jan 2019, 08:50:00 AM IST
Asia stocks fall as China data hits New Year start
Asian stocks fell on the first trading day of 2019 and U.S. futures and oil pared gains as evidence of slowing Chinese growth weighed on investors already reeling from the worst year for global equities since the financial crisis. The yen touched a six-month high. The steepest declines were in Hong Kong and China, while shares also fell in Australia and South Korea. S&P 500 Index futures trimmed an advance spurred by signs U.S. President Donald Trump may be more willing to make a deal to end a government shut down. Hong Kong’s Hang Seng Index fell 2 percent as of 10:04 a.m. in Hong Kong. The S&P/ASX 200 Index fell 0.4 percent. South Korea’s Kospi index lost 0.4 percent. Shanghai Composite Index dropped 1 percent. S&P 500 futures rose 0.1 percent. The S&P 500 Index rose 0.9 percent Monday. Bloomberg