OTHERS :Mumbai: BSE Sensex and NSE’s Nifty 50 closed lower for the second straight session on Monday as global markets came under pressure amid continued turmoil in Turkish lira, and ahead of key CPI inflation data at home. The Indian rupee slumped to a fresh record low against the US dollar as emerging-market currencies weakened. The rupee opened at 69.49 and touched a record low of 69.75 a dollar. In global markets, stocks in Europe and Asia declined to a near one-year low, as Turkey’s worsening currency crisis persuaded investors to sell equities and emerging markets, and run for safer assets such as government bonds and the dollar. Traders are also cautious ahead of CPI inflation data for June due later today. According to a Bloomberg poll, the retail inflation will be at 4.47% in June from 5% a month ago. Moreover, FIIs sold shares worth Rs 510.66 crore on Friday, while DIIs purchased Rs 457.83 crore on net basis, provisional data showed. Here are the highlights from the markets:
BSE Sensex closed lower by 224.33 points, or 0.59%, to 37,644.90. During the day, the 30-shares index shuttled between 37,799.54 and 37,559.26. The Nifty 50 fell 73.75 points, or 0.65%, to close at 11,355.75 after trading in the range of 11,406.30-11,340.30.BSE MidCap and SmallCap fell 0.70% and 0.78%, respectively. Among the sectoral indices on BSE, oil and gas, bankex, finance, energy and basic materials led losses by falling over 1%. IT gained most at 1.24% followed by teck, healthcare, FMCG and consumer durables.Infosys, Sun Pharma, Wipro, Mahindra and GAIL were among the top gainers, whereas BPCL, Yes Bank, Vedanta, SBI, ONGC were among the major losers.
The Indian rupee plunged to a lifetime low of 69.8 against the US dollar in early trade on Monday. A falling rupee is bad news for everyone, from companies to individuals to those on the Dalal Street. Here’s how.
IL&FS Transportation Networks Ltd shares fell 12.04% to Rs 34.70 after the company reported a June-quarter loss of Rs 248 crore compared to a profit of Rs 24.78 crore in the year-ago quarter. Revenue from operations stood at Rs 807 crore in the quarter ended 30 June, compared to Rs 749 crore in the same quarter last year.
Cadila Healthcare Ltd shares fell 3.76% to Rs 362.35 after the company reported a consolidated net profit of Rs 461 crore in the quarter ended 30 June, compared to a profit of Rs 138 crore in the last year, and higher than the consensus forecast of Rs 440 crore. Consolidated sales rose to Rs 2,769 crore in the June quarter from Rs 2,155 crore in the same period last year.
Shares of IT companies traded higher with Nifty IT Index gaining over 1.2% after the Indian rupee plunged to a record low against the US dollar today following losses in emerging-market currencies. At 2.22pm, the rupee was trading at 69.73, down 1.3% from its previous close of 68.84.
Godrej Industries Ltd shares fell as much as 3.45% to Rs 595.35 after the company reported a consolidated profit after tax of Rs 129 crore in the quarter ended 30 June, compared to Rs 152 crore last year. Consolidated revenue from operations stood at Rs 3,031 crore in the June quarter, compared to Rs 2,718 crore in the same period last year.
Future Enterprises Ltd reported a loss of Rs 30.35 crore in the quarter ended 30 June, compared to Rs 45.46 crore a year ago. Revenue from operations came in at Rs 1,018 crore in the June quarter, versus Rs 1,041 crore in the same period last year. Future Enterprises shares fell 0.67% to Rs 37.10.
The Securities and Exchange Board of India (Sebi) will take measures to bring cost effectiveness in the sector by promoting go green initiatives through online transactions and examine the existing expense ratio applicable for various schemes. Besides, measures will be taken to bring uniformity in various practices of the mutual fund industry in the areas of governance, risk management, due diligence process and channels of distributions among others. Read more
Hindustan Aeronautics Ltd shares traded 1.41% up at Rs 985.15. In intraday, the stock hit a high of Rs 996.45. The company reported a net profit after tax of Rs 361 crore in the quarter ended 30 June, compared to Rs 330 crore a year ago. Income from operations stood at Rs 2,814 crore in the June quarter, compared to Rs 2,904 crore in the same period last year.
Banks dragged European shares down on Monday as a growing economic crisis in Turkey shook investor confidence in lenders exposed to the country. Euro zone bank stocks tumbled 1.2% to a six-week low as Turkey-exposed banks BBVA, Unicredit and BNP Paribas fell 0.9 to 2.6%. The pan-European STOXX 600 fell 0.4% to a three-week low, with Germany’s DAX down 0.6% as banks weighed.
Sansera Engineering Ltd has filed documents for its initial public offering of 17.2 million shares. * Sansera Engineering said ICICI Securities, Credit Suisse, IIFL Holdings, Nomura and BNP Paribas are book running lead managers for the IPO. Mint previously reported that the ₹1,400-1,500 crore IPO will largely be a secondary sale of shares by the company’s PE investor, TRG, as it is looking to offload a significant part of its stake.
Is the meltdown in the Turkish lira a foretaste of things to come in emerging markets? Apart from the lira, how are the currencies of the other “Fragile Five” economies of 2013—Brazil, Indonesia, India and South Africa—doing? What are the chances of India being affected? These are some of the questions doing the rounds, as the plunging lira resurrects long-buried fears.
Reliance Communications Ltd said that the company and Reliance Telecom Ltd have reinstated bank guarantees of Rs 774 crore with the Department of Telecommunications, ensuring that RCom’s license and spectrum value of Rs 11,300 crore remains fully protected. Moreover, the company said its asset monetization programme of about Rs 25,000 crore for tower and fibre business is on track, and will be completed expeditiously. The first tranche of Asset monetization proceeds has been received last week, RCom added in a regulatory filing. RCom shares rose as much as 3.38% to Rs 20.15.
Shares of United Breweries Ltd jumped as much as 6.9% to Rs 1,288 to highest since 22 June. The company, which manufactures and sells ‘Kingfisher’ and other beer brands, posted an over 37% rise in its June-quarter net profit. The stock was up 11.7% this year as of last close. Shares were up for the fourth straight session.UBL’s Q1 numbers were above estimates on profitability front and in line with estimates on revenues front, noted ICICI Securities. UBL recorded a volume growth of 12% compared with industry growth of 9%, said the brokerage, adding that the growth was also favourable on account of channel filling in Uttar Pradesh due to changes in Route to Market which led to granting of large number of new wholesale licenses. Favourable demographics, rising disposable income and low per-capita beer consumption continues to weigh positively for the segment, it noted. Reuters
Coal India Ltd rises as much as 3.2% in biggest daily pct gain since 3 Aug. The company on Saturday posted a 61.07% jump in consolidated net profit to Rs 3,786.44 crore for the quarter ended 30 June, compared to Rs 2,350.78 crore a year ago. Coal production stood at 136.85 million tonnes (MT) during the quarter, while offtake was 153.47 MT.Nomura analysts maintained ‘buy’ rating with PT of Rs 318 rupees. Morgan Stanley analysts expect realisations to improve, helped by higher share of e-auction volume. The brokerage rated Coal India stock ‘equal-weight’ with PT of Rs 306.Twenty-three of 29 brokerages rate the stock “buy” or higher, five “hold” and one “sell” or lower; their median PT is 345 rupees, according to Thomson Reuters data.
The Indian rupee slumped to a fresh record low against the US dollar as emerging-market currencies weakened amid concern over the risk of contagion from Turkey’s financial-market turmoil. The Reserve Bank of India was seen intervening to stem a sharp fall in the currency, according to Bloomberg report. The currency reversed marginally from its record low of 69.62 a dollar from its Friday’s close of 68.84. At 11.15am, rupee was trading at 69.48 a dollar, down 0.93%. So far this year, the rupee has weakened 7.7%, while foreign investors have sold $260.40 million and $5.43 billion in equity and debt markets, respectively.
Oil prices dipped as rising trade tensions dented the outlook for fuel demand growth especially in Asia, although US sanctions against Iran still pointed towards tighter supply. Front-month Brent crude oil futures were at $72.63 per barrel at 10.39am, down by 18 cents, or 0.25% from their last close. US West Texas Intermediate (WTI) crude futures were at $67.63 a barrel, unchanged from their last settlement. Reuters
Shares of Andhra Bank fell as much as 4.85% to Rs 32.40 to hit their lowest in over 2 weeks. The company posted a loss of Rs 540 crore in the quarter ended 30 June, compared with a profit of Rs 40.42 crore a year ago. Provisions and contingencies jumped to Rs 1,708 crore in the June quarter from Rs 1,301 crore in the same period last year. Up to the last close, the Andhra Bank stock had fallen about 41% this year.
To reap the benefit of the LIC-IDBI Bank deal, the culture has to change or IDBI Bank will remain Air India of the banking sector
Shares of HDFC Bank Ltd declined as much as 1.6% to Rs 2,080, its lowest since 4 July, after the bank said Paresh Sukthankar, deputy managing director (MD) and founding member of HDFC Bank, has resigned. Sukthankar’s resignation comes as a surprise as he was considered one of the front-runners to succeed MD and chief executive officer (CEO) Aditya Puri, who is set to retire in October 2020.“Do not see any near-term concerns to business given the strength of the senior management team but it does appear that the successor is most likely an external candidate. We maintain our ‘reduce’ rating given the current valuations and preference for corporate banks,” said Kotak Securities.“From HDFC Bank stock perspective, Sukthankar’s resignation is a mild negative in the near term but the bank had built strong leadership and hence we do not expect any material change in the multiple for the bank,” noted Nomura.
BSE Sensex traded lower by 286.09 points, or 0.76%, to 37,583.14. The 30-share index opened 176 points lower at 37,693.19 and hit a low of 37,559.26. The Nifty 50 traded 81.35 points, or 0.71%, to 11,348.15. The NSE index opened at 60 points lower at 11,369.60, and touched a low of 11,340.30.BSE MidCap fell 0.42% and SmallCap declined 0.84%. Among the sectoral indices on BSE, bankex, finance, energy and basic materials led losses by falling over 1%. Healthcare, IT, FMCG and consumer durables advanced.Coal India, Sun Pharma, Mahindra and Wipro were among the top gainers, whereas Vedanta, SBI, Yes Bank and HDFC were among the major losers.
Jet Airways shares fell as much as 3.23% to Rs 267.45 following latest financial and regulatory troubles at the company. DGCA is set to conduct a financial audit of Jet Airways, after the Naresh Goyal-promoted airline postponed its June quarter (Q1) results, reported PTI. On 9 August, the Jet Airways board deferred the Q1 results. Sebi is looking into Jet Airways’ deferring the announcement of Q1 results following reservations expressed by the airline’s audit committee.
Banking stocks have been on the rise in the past one month with those of public sector banks gaining the most. Indeed, in some cases, investors have been more gung-ho about a recovery in banks than the bank managements. Look at the above chart of banking indices. The Bank Nifty has risen 4.5% since July, while the public sector banking index has gained 14%. This despite 22 out of 36 listed banks posting losses for the March quarter. Read more
Shares of Bajaj Electricals Ltd fell 6% to Rs 570. Bajaj Electricals on Saturday condoled the death of its managing director Anant Bajaj, who died of a heart attack on Friday evening. Bajaj, 41, played crucial leadership roles through his 19 years career at Bajaj Electricals, from being a sales trainee in the mid-1990s to a project manager in 1999, and then being appointed as managing director earlier this year.
State Bank of India fell 2.8% to Rs 295.95. The bank on Friday posted a loss for the third consecutive quarter after setting aside funds to cover losses on its bond portfolio and increased gratuity. The country’s top lender by assets turned to a loss of ₹4,875.85 crore in the June quarter, from a net profit of ₹2,005.53 crore a year earlier. A Bloomberg poll of 17 analysts forecast the bank to report a profit of ₹237.80 crore.
BSE Sensex traded lower by 270 points, or 0.71%, to 37,599.23, while the Nifty 50 fell 78.95 points, or 0.69%, to 11,350.55.
The Indian rupee slumped to a fresh record low against the US dollar as emerging-market currencies weakened amid concern over the risk of contagion from Turkey’s financial-market turmoil. At 9.13am, the rupee was trading at 69.46 a dollar, down 0.9% from its previous close of 68.84. The currency opened at 69.49 a dollar and touched an all time low of 69.49. Turkey’s lira tumbles as much as 12.5% against the dollar as the nation heads for a full-blown financial crisis.
Inflation data, quarterly earnings and global cues are expected to influence the stock markets’ trajectory in a holiday-shortened week ahead, say experts. The Bombay Stock Exchange and the National Stock Exchange are closed on Wednesday for Independence Day. “For the week ahead, CPI and WPI inflation data will be watched,” said Vinod Nair, head of research, Geojit Financial Services. Read more
■ Asian markets opened lower and the euro hit one-year lows as a fresh fall in the Turkish lira fuelled demand for safe havens, reports Reuters. US stocks closed with losses on Friday. S&P 500 lost 0.7% to 2,833.■ PVR Ltd said it has agreed to buy a 71.7% stake in SPI Cinemas Pvt. Ltd for Rs633 crore—a move that will help India’s largest multiplex operator boost its presence in the lucrative south Indian market, reports Mint.■ Sun Network plans to launch new Marathi, Bengali channels and roll out a second Tamil general entertainment channel in Tamil Nadu and Andhra Pradesh, reports Business Standard.■ DLF Ltd is planning to return to Hyderabad and Chennai, stepping out of its home market of National Capital Region (NCR), to develop new office and residential projects, reports Mint.■ The aviation regulator has decided to conduct an audit of Jet Airways, which is facing a liquidity crisis, reports Business Standard. Meanwhile, the airline has initiated a stake sale process to raise $350-400 million from global private equity firms, reports The Economic Times.■ ITC Ltd, Wipro Consumer Care & Lighting Ltd and Cadila Healthcare Ltd are readying to submit binding offers to buy Kraft Heinz India’s popular nutritional drink brand, Complan, reports Mint.■ Reliance Jio Infocomm, a unit of Reliance Industries Ltd, is poised to launch broadband service bundled with internet-based television programming starting at about Rs 500 a month, reports The Economic Times.■ Earnings today: Godrej Industries Ltd, IL&FS Transportation Networks Ltd, Tata Steel Ltd and Tata Chemicals Ltd are some of the companies that will release their earnings for the June quarter today. (R. Sree Ram/Mint)With inputs from Reuters
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