PremiumOTHERS : Mumbai: Indian benchmark indices BSE Sensex and NSE’s Nifty 50 rebounded after falling over 1% on Wednesday supported by gains in shares of private bank such and auto companies. A recovery in US equity futures also supported the local markets. The BSE Sensex closed 179.79 points, or 0.51%, up at 35,649.94, and the Nifty 50 ended 66.35 points, or 0.62%, higher at 10,729.85. The Indian rupee gained against the US dollar after Brent crude dropped below $50 a barrel. The two indices opened lower and fell over 1% in early trade following weak cues from Asian stocks.However, the BSE midcap ended 0.01% down and the smallcap declined 0.21%. Among the sectoral indices on BSE, telecom gained most at 1.7% followed by finance, capital goods, bankex and industrials, which rose 0.6% to 0.9%. IT, realty, teck, FMCG, healthcare and power fell.Bharti Airtel shares rose over 4% and the stock was the top Sensex gainer followed by HDFC and HDFC Bank, which rose 2%. L&T, Bajaj Auto and Adani Ports were among other major gainers on the key indices. On the other hand, Sun Pharma, Yes Bank, NTPC and Infosys led losses.In global markets, U.S. equity futures edged higher. Asian stocks saw a volatile session, with Japanese equities closing higher. With European markets still shut for Christmas, investors focus on US assets for clues to whether the sell-off will continue when trading resumes in New York. Oil prices were mixed in thin trading as US oil rebounded from steep losses in the previous session, while international Brent benchmark traded lower. Indian markets were closed on Tuesday on account of Christmas Day. Here are the latest updates from the markets:
The BSE Sensex closed 179.79 points, or 0.51%, up at 35,649.94, and the Nifty 50 ended 66.35 points, or 0.62%, higher at 10,729.85.
State-run Indian Oil Corp. Ltd may drop its plan to acquire as much as 50% stake in the Mundra LNG terminal in Gujarat, Mint reported, citing three officials aware of the development said. In August 2017, Indian Oil said it has received an in-principle approval from its board to buy a 50% stake in the 5 million tonnes per annum terminal (mtpa) for around ₹750 crore. The ₹5,000 crore project is being built by GSPC LNG Ltd, a unit of Gujarat State Petroleum Corp. Ltd (GSPC). Read more
Deepak Jasani, head of retail research at HDFC Securities Ltd: “There are no local cues for Indian equities at least till the second or third week of January, and it seems that stocks will take direction from global events till then.”“Any bounce in markets will be hard to sustain as there are a lot of negative expectations arising out of political uncertainties ahead of general elections in May. Investors should aim at cleaning up and restructuring their portfolios and raise some cash at every bounce in the market till the national elections,” he said. “They can deploy that cash in a bigger sell-off expected around the election.Avinash Gorakshakar, head of research at Joindre Capital Services Ltd: “I think markets are largely oversold and there could be some covering of short positions by traders also ahead of the expiry of the December derivatives contracts tomorrow. Emergence of flows from overseas investors if the US Fed signals less rates hikes can be a positive for an emerging market like India.” Bloomberg
Two-wheeler sales in India is expected to grow at 8-10 per cent in 2018-19 amid concerns over increasing cost of acquisition disturbing positive demand drivers, according to ratings agency ICRA. Supported by growing per capita income, improved farm sentiment following near-normal monsoon over the last three financial years, higher minimum support price (MSP) and farm loan waiver in select states, the domestic two-wheeler industry volumes are expected to grow at 8-10 per cent during FY2019, ICRA said in a statement. PTIHero MotoCorp shares were up nearly 1%, TVS Motor rose 0.5% and Bajaj Auto was up 0.4%.
This is the worst performance of the Sensex in December since 2015, with the index falling 2% in this month so far. The Sensex had jumped 2.74% in December 2017. However, despite the weak performance, Indian equities have slipped less than other world markets. MSCI’s world equity index, which tracks shares in 47 countries, has slipped 10.11% in December so far. In the year so far, the Sensex has gained 4.15%, while MSCI World slipped 12.76%. Read more
The BSE Sensex traded 160.69 points, or 0.45%, down at 35,309.46, and the Nifty 50 fell 37.80 points, or 0.35%, to 10,625.70. Intraday, the Sensex plunged as much as 35,010.82 and the Nifty slumped 128.95 points to 10,534.55.The BSE midcap and smallcap indices fell 0.59% and 0.69%, respectively. Among the sectoral indices on BSE, capital goods, consumer durables, industrials and basic materials erased losses, while oil and gas trimmed gains and traded flat. On the losing side, IT and realty fell over 1% followed by healthcare, energy and teck.
Auto component makers have drawn up ambitious capital expenditure plans because of the need to upgrade their technologies and other regulations in the automobile sector @VatsalaKamat https://t.co/MIE1gskq15
— Mint Mark to Market (@livemint_m2m) December 26, 2018
The government is hopeful of higher output in the new year from already allocated mines and plans to further allot 10 mines to state-run behemoth Coal India Ltd (CIL) in 2019, reported PTI. Of the 85 mines already allotted, 23 have already started production and the Coal Ministry expects 20 more mines to begin production in the current financial year ending March 2019 or early in the next fiscal, added the report.Prabhudas Lilladher lowered the rating on Coal India shares to “Hold” and cut the target price to Rs 270 per share from Rs 330 per share, citing “weak operational performance and rising headwinds due to Govt policy on opening up the sector.”Coal India shares marginally higher at Rs 248.75. Intraday, the stock hit a high and low of Rs 250.20 and Rs 246.35.
Bengaluru-based real estate developer Shriram Properties Ltd on Monday filed draft documents with markets regulator, Securities and Exchange Board of India (Sebi), for an initial public offering (IPO). The company, part of the Shriram Group, plans to raise up to ₹250 crore in fresh capital through the IPO, according to the draft red herring prospectus (DRHP) available on the website of merchant bankers managing the share sale. Read more
Reliance Securities said, “Kalpataru Power Transmission (KPTL) has delivered a strong performance in 2QFY19 led by better-than-expected execution in Railway, Oil & Gas Pipeline and T&D business. Looking ahead, we expect KPTL to be one of the key beneficiaries of strong transmission capex in both domestic and global markets, which would drive 21% CAGR in earnings through FY18- 20E.” The brokerage recommended “Buy” on the stock with a target price of Rs 544
India’s benchmark Sensex Index extended its fall for a fourth session on Wednesday, dropping nearly 1,400 points in this period, amid US government shutdown and concerns over global economic growth for next year. The Sensex today fell 406.47 points, or 1.15%, to 35,085.85 at 10.33am, while the broader Nifty index shed 121.25 points or 1.14%, to 10,542.25. Since 19 December till date, Sensex fell nearly 3.7% or 1390 points, while Nifty declined 3.9% or 424 points. Read more
A global slowdown can weigh on Indian companies' earnings, since a number of them depend on exports and have large overseas subsidiaries as wellhttps://t.co/eyEmzzjV3Z
— Livemint (@livemint) December 26, 2018
Motilal Oswal initiated coverage on Brigade Enterprises with “Buy” and a price target of Rs 282. “BRGD appears all set for a tactical shift in its portfolio, with a clear focus on scaling up the high-potential leasing business. The company aims to add ~4msf of leasable area to its portfolio over the next five years. Consequently, we expect a leasing income CAGR (FY18-22) of 27% to INR6b (up by a significant 2.6x from FY18 levels).” Brigade Enterprises shares rose as much as 6.51% to Rs 219.90 per share.
Maruti Suzuki India Ltd said it will recall 5,900 super carry vehicles manufactured between April 26 and August 1 to inspect a possible defect in fuel filter. Starting December 26, customers will be contacted by Maruti Suzuki dealers for inspection and replacement of the faulty part free of cost. Shares traded 1.04% down at Rs 7,435.35 per share. Intraday, the stock fell as much as 1.43% to Rs 7,406.
The BSE Sensex traded 289.81 points, or 0.82%, down at 35,180.34. The Sensex opened at 35,470.15 and hit a low of 35,160.78. The Nifty 50 fell 73.80 points, or 0.69%, to 10,589.70. The 50-share index opened at 10,635.45 and fell to a low of 10,575.05.The BSE midcap and smallcap indices declined 1.065 and 0.96%, respectively. All the sectoral indices on BSE, except oil and gas, traded lower dragged mainly by IT, teck, basic materials, and healthcare, which fell over 1%.
Shares of oil marketing companies and airlines advanced after crude oil prices fell over 8% in last two sessions. Shares of HPCL, Indian Oil and BPCL rose over 1.5%. SpiceJet shares gained over 3%. Jet Airways and InterGlobe Aviation rose 1% each.Oil prices fell below $50 a barrel for the first time since July 2017 as broader financial market turmoil and worries over US supply countered signals from the OPEC+ coalition that it may extend or deepen output cuts. Futures fell as much as 1.1 per cent, after Monday’s 6.2 per cent drop. Read more
Shares of Hindustan Unilever Ltd fell as much as 2.32% to Rs 1,742 per share after GST anti-profiteering watchdog, National Anti-profiteering Authority (NAA), said on Monday HUL has allegedly profiteered to the extent of ₹383 crore after the large scale GST rate cut last November. An order from the NAA posted on its website said that, after allowing for certain deductions, the confirmed amount of tax benefit that the company has not passed on to consumers was assessed at ₹383 crore. NAA asked HUL to deposit ₹223 crore in central and state consumer welfare funds as the company had proactively deposited ₹160 crore with the central consumer welfare fund, set up under the anti-profiteering laws.
The Indian rupee gained against the US dollar after Brent crude dropped below $50 a barrel and comments from US President Donald Trump expressing confidence in the Treasury secretary, federal reserve and US economy. At 9.10am, the rupee was trading at 69.82 a dollar, up 0.46% from its Monday’s close of 70.14. Rupee opened at 69.93 a dollar and touched a high of 69.79 a dollar. The 10-year gilt yield was trading at 7.235% from its previous close of 7.287%.
Asia's worst performing currency in 2018 is expected to redeem itself next year, considering that global factors may be more conducive to a stronger Indian rupee, writes @aparnaviyer02 https://t.co/NoUMb3DTDs
— Mint Mark to Market (@livemint_m2m) December 25, 2018
Indian stocks may extend this year’s declines when markets reopen on Wednesday with renewed turmoil in Washington rattling investor confidence. Japan’s Nikkei 225 Stock Average 5% on Tuesday, widening its drop to 21% from its 2 October peak, as it took cues from the S&P 500’s worst trading session before the Christmas holiday. Chinese shares, the other major Asian market open on Tuesday, also declined as investors shrugged off a pledge by the government to do more to support companies. Read more
Oil prices were mixed in thin trading as the US benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market in the longer term. US WTI crude futures, were up 35 cents, or 0.82%, at $42.88 per barrel, at 0152 GMT, having at one point risen as high as 2% from the last close. Meanwhile, Brent crude oil futures were down 16 cents or 0.32% at $50.31 a barrel, having skidded 6.2% in the previous session to $50.47 a barrel, the weakest since August 2017.Gold prices inched lower on Wednesday as the dollar firmed but hovered near a six-month high, supported by political instability in the United States and concerns about a global economic slowdown. Spot gold slipped 0.2% to $1,265.46 per ounce as of 0052 GMT. The metal touched $1,270.50 in early trade, its highest level since June 25. US gold futures were down 0.3% at $1,268.10 per ounce.Metals: Chinese copper prices edged higher on Wednesday after the market recovered after two days of declines but gains were capped by concerns over slowing global economic growth. The most-traded copper contract in Shanghai added 0.3% to 48,040 yuan ($6,977.89) a tonne. Reuters
Japanese stocks recouped a portion of their biggest daily slide in more than two years, though came off their highs Wednesday after CNN reported that President Donald Trump’s frustration with Treasury Secretary Steven Mnuchin is rising. U.S. equity futures dipped. The yen eased, while Treasury yields ticked higher. Korean shares fell after a holiday, and Shanghai stocks were little changed. Australia and Hong Kong were closed.The MSCI Asia Pacific Index was up 0.3% as of 11:07 a.m. Tokyo time. The Topix Index rose 1.2% after advancing as much as 2%. It slumped 4.9% Tuesday. Futures on the S&P 500 Index dipped 0.2%. The underlying gauge is 7 points away from completing a full-blown bear-market drop. The Kospi Index was down 1.4%. Shanghai Composite fell 0.2%. Bloomberg
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