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PremiumOTHERS :Mumbai: The BSE Sensex and NSE’s Nifty 50 declined for the second straight session on Thursday as investors remained cautious after the government has increased import duties on select goods and the Reserve Bank of India (RBI) announced measures to ease liquidity concerns. Moreover, selloff in financial stocks also added pressure. Shares of Yes Bank and Indiabulls Housing Finance fell over 9% and 6%, respectively. Meanwhile, FIIs sold equities worth Rs 809.95 crore on net basis on Wednesday, while DIIs purchased shares to the tune of Rs 1,555.44 crore, provisional data showed.In global markets, stocks in Europe and Asia fell as investors digested the likelihood of more Federal Reserve interest-rate increases stretching into next year. The euro fell with Italian bonds as the country delayed its budget. Oil prices climbed after the US ruled out the release of emergency crude reserves. Here are the highlights from the markets:
The BSE Sensex closed 218.10 points, or 0.60%, lower at 36,324.17, while the Nifty 50 fell 76.25 points, or 0.69%, to close at 10,977.55. The BSE MidCap and SmallCap indices underperformed the benchmark Sensex and fell 2.19% and 1.97%, respectively.Seventeen out of 19 sectoral indices declined with realty losing most 2.79%. Capital goods, finance, industrials, auto, bankex and healthcare fell over 1.5%. IT and teck gained 0.77% and 0.65%, respectively.TCS, Coal India, Asian Paints and Power Grid were among the top gainers, whereas Yes Bank, Maruti, Tata Motors and Axis Bank were among the top losers.
Gold prices fell by Rs 100 to Rs 31,550 per 10 gram at the bullion market Thursday due to a weak trend overseas and muted demand from local jewellers. Silver prices also dropped by Rs 300 to Rs 38,450 per kg owing to reduced offtake by industrial units and coin makers. In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 100 each to Rs 31,550 and Rs 31,400 per 10 gram, respectively. The precious metal had lost Rs 75 in Wednesday’s trade.
Yes Bank shares fell as much as 9.56% to Rs 202.25 per share. The stock has been under selling pressure due to a lack of clarity and expectation of delay on the new chief executive officer appointment, near term trend, and the current liquidity position in the economy.
Year to date, the Yes Bank stock has fallen over 34%https://t.co/aV8Ar1YS8M
— Livemint (@livemint) September 27, 2018
HSBC has raised target price for Dr. Reddy’s Laboratories Ltd to Rs 2,315 from Rs 2,165, maintaining rating at “hold”. HSBC said the company’s earnings recovery continues to hinge on its big three Abbreviated New Drug Applications (ANDAs)—Suboxone, NuvaRing and Copaxone, while competitive pressure remains for its base US business.While the outcome of an appeal against adverse preliminary injunction (PI) for its generic opioid drug gSuboxone is awaited, improving pickup in Sublocade prescriptions (by rival Indivior Plc) could also shrink the benefit from gSuboxone for the company, added HSBC.HSBC believes upside from key ANDAs is already priced in and reflected in earnings growth forecasts for FY19 and FY20, but outcome of the PI appeal for gSuboxone and development around pending cGMP (good manufacturing practices) issues could swing stock price in either direction.Seventeen of 39 brokerages covering stock rate it “buy” or higher, 12 “hold” and 10 “sell” or lower; median PT 2,327.50 rupees, according to Thomson Reuters data. Dr. Reddy’s shares traded 2.27% down at Rs 2,541.10 per share. Reuters
Reliance Communications Ltd., the telecommunications company that’s offloading most of its assets to a rival, is in talks to sell a controlling stake in what will remain after it exits India’s consumer wireless business. The company helmed by billionaire Anil Ambani is negotiating with two investors who are conducting due diligence, Bill Barney, chief executive officer of the company and its undersea cable unit Global Cloud Xchange Ltd., said Wednesday. RCom shares traded 1.16% down at Rs 12.75 per share. Read more
Europe’s main stock markets dropped at the start of trading on Thursday, with London’s benchmark FTSE 100 index down 0.2 percent at 7,493.26 points. In the eurozone, Frankfurt’s DAX 30 shed 0.5 percent to 12,329.40 points and the Paris CAC 40 slipped 0.2 percent to 5,500.25. AFP
Voltas Ltd shares declined as much as 6.74% to Rs 533, lowest in over 2 months, after the government raised import tariffs on 19 “non-essential items,”, including air-conditioners, household refrigerators, washing machines less than 10 kgs and compressors for ACs and refrigerators.ICICI Securities says import tariff hike in addition to higher import cost due to depreciation of the Indian rupee is expected to impact co’s margins; reiterates “sell” rating. The company was planning to launch refrigerators and washing machines from its JV with Turkey’s Arcelik with an import model planned initially; increase in custom duties to adversely impact JV’s performance, added ICICI Securities. Rivals Havells India Ltd down 3.8 pct and Whirlpool of India Ltd fell 1.6 pct. Reuters
With the US sanctions on Iran looming, Moody’s Investors Service has estimated an around $500 million decline in earnings for Indian state-owned refiners, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), on account of substituting crude oil imports from the Persian Gulf country. Read more
Ripple effects from a company defaulting on its payment obligations and news of a sell-off in a housing finance company’s shares have put pressure on non-banking financial company (NBFC) stocks. Mint analyses how the events unravelled and what’s ahead for NBFCs.
Which NBFCs do brokerages prefer?https://t.co/9ImJ4A4aNZ
— Livemint (@livemint) September 27, 2018
BSE Sensex traded lower by 89.35 points, or 0.24%, to 36,452.92, while the Nifty 50 fell 31.55 points, or 0.29%, to 11,022.25. The BSE MidCap and SmallCap indices underperformed the benchmark Sensex and fell 1.26% and 1.06%, respectively.Among the sectoral indices on BSE, IT, teck, metal and consumer durables advanced. Realty fell most at 2.75% followed by healthcare, capital goods and finance fell over 1%.Asian Paints, Infosys, Tata Steel and Bajaj Auto were among the major gainers, whereas Yes Bank, Sun Pharma, HDFC and Maruti were among the top gainers.
Larsen and Toubro Ltd said that its power business has received two orders worth Rs 1,400 crore for setting up flue gas desulphurisation systems from NTPC at its Vindhyachal super thermal power plant in Madhya Pradesh and Darlipali super thermal power project in Odisha. Shares traded 0.89% down at Rs 1320.
Two-wheeler manufacturers are left with a tough choice to either pass on the costs to maintain their profit margins, or absorb some of it to support demand
Unfortunately, the timing is inappropriatehttps://t.co/3Qj8KmdZsa
— Livemint (@livemint) September 27, 2018
Shares of financial services companies extended losses. The Nifty Finance Services Index was down 0.87% dragged mainly by Indiabulls Housing Finance and Edelweiss Financial Services, which fell over 6%. Bajaj Finance and IIFL fell over 2%. HDFC and ICICI Bank were down over 1%.
The Reserve Bank of India (RBI) announced a measure that will allow banks more access to funds as it moved to ease a liquidity squeeze afflicting the nation’s money markets. RBI increased the facility to avail funds for liquidity coverage ratio to 13% from 11%, effective 1 October, according to a central bank statement on Thursday. The increase will take the carve out from the statutory-liquidity ratio that is available to banks to 15% of their deposits. The central bank also said that it stands ready to meet the durable liquidity requirements of the system. Read more
Torrent Power Ltd said it has won a bid to set up 1200 MW ISTS connected wind power projects for Solar Energy Corporation of India Ltd. Shares rose as much as 1.81% to Rs 233.40, but soon erased gains to trade 0.55% down at Rs 228.
Shares of HCL Technologies rose as much as 1.23% to Rs 1,103.20 after the company on Wednesday announced a five-year infrastructure services contract with mining company Anglo American.
Aviation stocks fell further after the government announced 5% increase in tariffs on jet fuels. Jet Airways India Ltd fell 4%, Indigo 4%, SpiceJet Ltd 2.2%.Consumer durable companies trading lower after the government announced increase in tariffs air conditioners, refrigerators, washing machines and footwear between 10% to 25%. Votas Ltd fell 4%, Havells India Ltd 2%, Whirlpool of India Ltd 2%, Symphony 0.5%. Read more
The Indian rupee on Thursday strengthened against the US dollar after the government increased tariffs on imported goods to narrow current account deficit. At 9.15am, the rupee was trading at 72.40 a dollar, up 0.30% from its Wednesday’s close of 72.62. The home currency opened at 72.41 per dollar. The 10-year gilt yield stood at 8.04%, below its previous close of 8.072%. Bond yields and prices move in opposite directions. Read more
Oil prices rose by 1% as investors focused on the prospect of tighter markets due to U.S. sanctions against major crude exporter Iran, which are set to be implemented in November. Front-month Brent crude futures were at $82.17 per barrel at 7.03am, up by 83 cents, or 1% from their last close. US WTI crude futures were at $72.41 a barrel, up 84 cents, or 1.2% from their last settlement.Gold prices edged up early, supported as investors looked for bargains after the metal fell to a two-week low in the previous session following a U.S. interest rate hike. Spot gold had risen 0.2% to $1,196.21 an ounce as of 6.30am. On Wednesday, the metal touched its lowest since Sept. 11 at $1,190.13 an ounce. U.S. gold futures were up 0.1% at $1,200.40 an ounce.London copper prices extended declines into a fourth session after a U.S. interest rate hike pushed the dollar higher and as industrial profits in top metals consumer China grew at their slowest pace since March. Three-month copper on the London Metal Exchange was down 0.4% at $6,257 a tonne as of 7.30am. Shanghai lead tumbled 1.8%, while nickel and aluminium both fell almost 1%. Reuters
■ The US Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of growth. ■ US stocks closed lower on Wednesday, giving up earlier gains, as comments from Federal Reserve Chairman Jerome Powell following a monetary policy announcement sent interest rates lower and bank stocks along with them. Asia markets were mixed on Thursday on the back of US Federal Reserve Chairman Jerome Powell’s comments on inflation after the central bank decided to increase interest rates.■ BSE Ltd has received the Securities and Exchange Board of India’s (Sebi) approval to launch delivery based futures contract in gold for 1 kg and silver for 30 kg, the exchange said in a filing late.■ Garden Reach Shipbuilders & Engineers Ltd. has extended its initial public offer to 1 October, from Wednesday, the state-run company said in a filing.■ Crisis-hit Jet Airways has told its pilots, aircraft maintenance engineers and senior management team that part of their August salaries will be paid by 9 October, according to a communication.■ Infrastructure Leasing & Financial Services (IL&FS) has not sought any funds from State Bank of India (SBI), the bank’s chairman Rajnish Kumar said on Wednesday.■ Punjab National Bank (PNB) and Indian Bank will offload their entire stakes in information services and data analytics firm Experian, according to a bid document released Wednesday.■ The government approved a Rs 4,500 crore package for the sugar industry that includes over two-fold jump in production assistance to cane growers and transport subsidy to mills for export up to 5 million tonnes in the marketing year 2018-19, sources said. ■ The Reserve Bank of India (RBI) is likely to raise interest rates in early October, despite relatively tame inflation, to prop up a retreating rupee, according to a Reuters poll of economists who also trimmed their near-term growth forecasts.■ Meanwhile, FIIs sold equities worth Rs 809.95 crore on net basis on Wednesdaym while DIIs purchased shares to the tune of Rs 1,555.44 crore, provisional data showed. Harsha Jethmalani/MintWith inputs from Reuters
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