12 min read.Updated: 04 Oct 2018, 04:15 PM ISTNirav Vyas
The BSE Sensex closed 806.47 points, or 2.24%, lower at 35,169.16, while the Nifty 50 ended 259 points, or 2.39%, down at 10,599.25. Here are the highlights from the markets
Mumbai: The BSE Sensex and NSE’s Nifty 50 plunged over 2% amid sell-off in emerging markets triggered by surging crude oil prices and prospects of more rate hike by the US Federal Reserve. The rupee and bond prices also slumped further, tracking losses in emerging market currencies. Moreover, shares of oil marketing companies—HPCL, BPCL and Indian Oil—fell between 10% to 12% after finance minister Arun Jaitley asked the companies to absorb Rs 1 cut on fuel prices. ICICI Bank shares rose over 4% after the bank disclosed that Chanda Kochhar stepped down as CEO and MD of the bank.In global markets, The rise in U.S. yields helped lift yields across Asia and Europe in response, while stocks fell. Shares in emerging markets also slipped as prospects of further Fed rate hikes raised concerns of foreign capital outflow from emerging markets. In currencies, the dollar was near a six-week high against a basket of peers. Oil prices eased from four-year highs after reports that Russia and Saudi Arabia struck a private deal in September to raise crude output. Here are the highlights from the markets:
04 Oct 2018, 03:37:00 PM IST
Closing bell: Sensex, Nifty down over 2.5%
BSE Sensex closed 806.47 points, or 2.24%, lower at 35,169.16, while the Nifty 50 fell 259 points, or 2.39%, to close at 10,599.25. In intraday trade, the Sensex plunged 953 points and the Nifty 50 tanked 311 points.The BSE MidCap and SmallCap declined 1.93% and 2.07%, respectively. All the sectoral indices on BSE posted losses with oil and gas and energy falling over 6.5%. IT and healthcare was down over 3%. Capital goods fell marginally at 0.07%.ICICI Bank, Axis Bank, L&T and Yes Bank were among the top gainers, whereas Reliance, HPCL, TCS and BPCL were among the major losers.
04 Oct 2018, 03:24:00 PM IST
OMC stocks fall after govt asks to cut prices
Shares of oil marketing companies fell after finance minister Arun Jaitley said that the government has asked the companies to absorb Rs 1 cut on fuel prices. HPCL shares fell 14.7% to Rs 214.40, BPCL was down 17.08% at Rs 313 and Indian Oil dived 14.23% to Rs 134.95.
04 Oct 2018, 02:46:00 PM IST
Gold prices rise today, silver follows
Gold prices rallied by Rs 70 to Rs 32,100 per 10 gram at the bullion market Thursday on the back of sustained buying by local jewellers amid firm global cues. However, silver eased by Rs 50 to Rs 39,350 per kg due to reduced offtake by industrial units and coin makers. Bullion traders said persistent buying by local jewellers and positive global cues, mainly kept gold higher.
04 Oct 2018, 02:13:00 PM IST
IDBI Bank shares rise near 3%
IDBI Bank said it has allotted 339.9 million shares to Life Insurance Corp. of India at a price of Rs 61.73 per share for up to Rs 2,098 crore via preferential issue. IDBI Bank shares rose 2.79% to Rs 57.05 per share.
04 Oct 2018, 01:58:00 PM IST
ICICI Bank shares jump 5% after Chanda Kochhar quits
ICICI Bank said its board of directors accepted, with immediate effect, CEO Chanda Kochhar’s request to seek an early retirement. Kochhar will also relinquish office from the board of the bank and subsidiaries, the company said in a BSE filing. The board has appointed Sandeep Bakhshi as managing director and CEO. ICICI Bank shares rise 5.23% to Rs 319.50.
04 Oct 2018, 01:30:00 PM IST
Don’t see rupee breaching 74/dollar, TCS treasury head
The past month’s worst performing emerging market currency is nearing a bottom, according to the head of global treasury at Asia’s largest software exporter Tata Consultancy Services Ltd. The Indian rupee has dropped 3% over a month, the biggest slump among 24 emerging markets tracked by Bloomberg. It fell to a new record on Thursday and is inching closer to 74 against the dollar. The currency won’t drop much further with the Reserve Bank of India and government taking “adequate measures” to arrest declines, T Venkatesan, TCS’s global treasury head, said in an interview at his office in Mumbai. Read more
04 Oct 2018, 01:10:00 PM IST
Cues investors should look out for in the September quarter earnings
BSE Sensex traded 798.82 points, or 2.22%, lower at 35,176.81, while the Nifty 50 fell 242.80 points, or 2.24%, to 10,615.45. In intraday, the Sensex slumped 858.81 points to 35,116.82 and the Nifty 50 sank 267.1 points to 10,591.15.The BSE MidCap and SmallCap indices fell 2.04% and 2.17%, respectively. All the sectoral indices on BSE, except capital goods, traded lower with energy falling most at 4.45%.
04 Oct 2018, 12:00:00 PM IST
Hathway Cable shares rise on RIL acquisition buzz
Shares of Hathway Cable and Datacom Ltd rose 2.54% to Rs 28.30. In intraday trade, the stock surged as much as 6.88% to Rs 29.50. The Economic Times on Wednesday reported that Reliance Industries has initiated talks to acquire Hathway Cable in a bid to speed up the commercial launch of its home broadband services.
BofA Merrill Lynch sees more pain ahead for Indian markets
Uncertainties related to oil prices and next year’s federal elections may “keep domestic sentiment and equity flows in check,” noted Bank of America Merrill Lynch strategists Sanjay Mookim and Nafeesa Gupta in a report on Wednesday, maintaining a cautious stance on Indian equities.Credit Suisse Group AG also stroke a cautious tone in a note Wednesday, saying there’s too much confidence over the economic expansion and advising investors avoid shares of companies that may fall should the data disappoint.“We worry that consensus GDP growth expectations are too optimistic as the import bill for the energy needed to drive that growth would turn out to be too high, given slow capital inflows,” Credit Suisse strategists Neelkanth Mishra and Prateek Singh wrote in a note Wednesday. Bloomberg
04 Oct 2018, 10:52:00 AM IST
Oil prices fall as Saudi and Russia quietly agree output rise
Oil prices on Thursday fell from four-year highs reached the previous session, pressured by rising U.S. inventories and after sources said Russia and Saudi Arabia struck a private deal in September to raise crude output. Brent crude oil futures were trading at $85.85 per barrel, down 44 cents, or 0.5%, from their last close. Brent on Wednesday hit a four-year high of $86.74 a barrel. US WTI crude futures were down 30 cents, or 0.4%, at $76.11 a barrel. Read more
04 Oct 2018, 10:34:00 AM IST
Market update: Sensex, Nifty extend losses
BSE Sensex traded 646.98 points, or 1.79%, lower at 35,328.65, while the Nifty 50 fell 198.15 points, or 1.82%, to 10,660.10. In intraday, the Sensex fell 659 points and the Nifty 50 plunged 202.3 points.The BSE MidCap and SmallCap indices fell 1.28% and 1.48%, respectively. All the sectoral indices on BSE, except capital goods, traded lower with energy falling most at 3.46%. IT and teck fell over 2%.Axis Bank, L&T, Yes Bank and Tata Motors were among the top gainers, whereas Reliance, Eicher Motors, TCS and Hindustan Unilever were among the major losers.
04 Oct 2018, 10:20:00 AM IST
Rising crude oil prices, US rates major concerns, say analysts
Emkay Global said, “Tightening global liquidity, rising rates, and the weakening rupee are coalescing into an equity market correction, and is now challenging the perceived Teflon coating of local participation. We believe that our reflationary recovery thesis has peaked due to emerging global and domestic headwinds.”“The risk is that it can go back to an average discount of 12-15%, instead of a premium, as it existed prior to May 2014. We assess the sector-wise impact of the emerging macro headwinds and conclude that margin pressure will reemerge; prefer sectors benefiting from the weak rupee and lenders with positive asset liability matches and strong growth capital,” Emkay Global added.Lakshmi Iyer, CIO (Debt) & Head of Products, Kotak Mahindra Asset Management Company, said, “The rupee has depreciated almost 7% since the last policy while crude oil prices are up by over 17%. This is a double whammy for a net oil importer like India. While the H1 FY19 CPI is likely to be within the RBI target range, the key is to see how much could H2 FY19 play spoilsport.”“Rising US rates and the intent to effect many more rate hikes would also be a pointer for our policy makers. Hence it seems the stage is set for yet another rate hike. The markets seem to already have discounted a rate hike at current prices and the tone of the policy could be a key determinant for yield movements,” Iyer added.
04 Oct 2018, 09:57:00 AM IST
RIL shares fall nearly 5%
Shares of Reliance Industries fell as much as 4.98% to Rs 1,145.25 per share on BSE. As many as 3.62 lakh shares changed hands on BSE.
04 Oct 2018, 09:47:00 AM IST
HDFC shares down over 2%
HDFC shares traded 2.29% lower at Rs 1,757.75 per share. HDFC Ltd on Wednesday said it earned Rs 787 crore from selling stake in the initial public offer of HDFC Asset Management Company Ltd. During the September quarter, income from dividend was Rs 6 crore compared to Rs 537 crore in the corresponding quarter, the company said in a regulatory filing. The latter amount included Rs 433 crore from HDFC Bank. Moreover, the HDFC assigned loans amounting to Rs 6,059 crore compared to Rs 3,531 crore in the same period a year ago. HDFC Bank shares were down 0.95% and the HDFC AMC stock fell 0.71%.
04 Oct 2018, 09:37:00 AM IST
Auto stocks extend losses further
Shares of auto companies traded lower today, with the S&P BSE Auto Index losing 1.48%. Eicher Motors was down 4.56%, Hero MotoCorp 2.84%, Apollo Tyre 1.89%, Bajaj Auto 1.50%, Maruti Suzuki 1.34% and Mahindra and Mahidra 1.5%.The Kerala floods, costlier fuel, higher insurance premiums for two-wheelers, and a period at the end of September that some perceive to be inauspicious for big-ticket purchases impacted consumer sentiment, with sales data ending mixed.Read:Auto stocks at 20-month low on high oil, insurance costs
04 Oct 2018, 09:28:00 AM IST
L&T shares rise 2% on share buyback updates
Shares of Larsen and Toubro Ltd rose as much as 2.69% to Rs 1,278 per share. The company’s board on Wednesday fixed the specific price of buyback of equity shares at Rs 1,475 per share. The company will repurchase upto 61,016,949 equity shares at an aggregating price of Rs 9,000 crore. Moreover, the company today disclosed that it has won Subsea Project for ONGC 98/2 block.
04 Oct 2018, 09:20:00 AM IST
Market update: Sensex, Nifty fall over 1.5%
BSE Sensex traded 604.74 points, or 1.64%, lower at 35,370.89, while the Nifty 50 fell 148.50 points, or 1.37%, to 10,709.75.
04 Oct 2018, 09:16:00 AM IST
Rupee opens at fresh record low
The rupee and bond prices plunged further, tracking selloff in emerging market currencies after US 10-year yield surged on better-than-expected US ADP job and service industry data and Fed comments. At 9.15am, the rupee was trading at 73.68 a dollar, down 0.46% from its Wednesday’s close of 73.34. The currency opened at 73.67 per dollar and touched a fresh low of 73.77. The 10-year gilt yield stood at 8.188%, up 8 basis points from its previous close of 8.112%. So far this year, the rupee has declined 13.4%, while foreign investors have sold $2.23 billion and $7.27 billion in the equity and debt markets, respectively.Also Read:As rupee hits new lows, RBI eases overseas borrowing norms for oil firms
04 Oct 2018, 08:53:00 AM IST
IL&FS board to meet today, may submit resolution plan in 15 days
The newly appointed board of Infrastructure Leasing and Financial Services Ltd (IL&FS) will submit a resolution plan for the debt-laden company within a fortnight of its first meeting to take place in Mumbai on Thursday, said a government official. The government on Wednesday appointed C.S. Rajan, former chief secretary of Rajasthan, as the seventh member on the new board of directors of IL&FS. Thursday’s meeting of the new board will also examine the need for further induction of members on the board, the official said. Read more
04 Oct 2018, 08:42:00 AM IST
Auto stocks at 20-month low on high oil, insurance costs
In a year when the benchmark Sensex has gained 5.63%, the BSE Auto index has shed 21.45%.
Commodity corner: Oil prices ease, gold rates little changed
Oil: Oil prices fell from four-year highs reached the previous session, pressured by rising US inventories and after sources said Russia and Saudi Arabia struck a private deal in September to raise crude output. Brent crude oil futures were trading at $85.85 per barrel, down 44 cents, or 0.5%, from their last close. Brent on Wednesday hit a four-year high of $86.74 a barrel. US WTI crude futures were down 30 cents, or 0.4%, at $76.11 a barrel.Gold: Gold prices moved in a narrow range after losses in the previous session, with robust US economic data and hawkish comments from Federal Reserve policymakers boosting the dollar. Spot gold was up 0.1% at $1,198.16 an ounce, after falling about 0.5% in the previous session. US gold futures were down 0.1% at $1,202.1 an ounce.Metals: London aluminium futures rose for a fifth session to trade near their strongest level in more than three months, buoyed by worries the closure of the world’s largest alumina refinery in Brazil will lead to a shortage of the raw material. Three-month LME aluminium was up 1.5% at $2,240 a tonne. The metal surged 4.2% overnight - its largest single-day gain since April. Copper climbed 0.6 percent to $6,304.50 a tonne and zinc added 0.4 percent to $2,661.
04 Oct 2018, 08:19:00 AM IST
Opening bell: Cues to look out for before trading today
■ Asian markets opened mixed. Overnight, US stocks broadly closed with gains. S&P 500 gained 0.07% to 2,925 on positive economic data.■ Infosys Ltd may have concluded one of its best quarters in a long time, reports The Times of India. According to the report, the company is estimates to have won upwards of $1.5 billion in total contract value in July-September quarter. ■ The newly appointed board of Infrastructure Leasing and Financial Services Ltd (IL&FS) will submit a resolution plan for the debt-laden company within a fortnight of its first meeting to take place in Mumbai on Thursday, reports Mint, citing a government official. Meanwhile, the government may consider one-time fund infusion into the languishing national highway projects of IL&FS, reports Business Standard.■ A day after farmer protests for better crop prices rocked the national capital, the Centre raised minimum support prices for winter crops to ensure farmers get 50% more than what they spend on cultivation, reports PTI.■ Various state governments have lined up subsidy worth well over Rs10 billion to incentivise sale of tractors to farmers, reports Business Standard. According to the report, states are offering subsidy on as many as 100,000 tractors.■ Reliance Communications said it has got relief from the telecom tribunal and will now be able to complete its planned spectrum sale, whose proceeds will be used to make payments to Ericsson India and RITL (Reliance Infratel) minority investors.■ The bankruptcy court has admitted the insolvency petition filed by ICICI Bank Ltd. against the Mehul Choksi-promoted Gitanjali Gems Ltd. Read more. R. Sree Ram/MintWith inputs from Reuters