Closing bell: Sensex closes 383 points down after 900-point swing
11 min read.Updated: 17 Oct 2018, 04:17 PM ISTNirav Vyas
The BSE Sensex closed 382.90 points down at 34,779.58, while the Nifty 50 ended 131.70 points lower at 10,453.05. Here are the latest updates from the markets
Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 reversed early gains and fell over 1% in the afternoon trade on Wedneday dragged mainly by auto and finance stocks, offsetting gains in IT stocks. The Sensex surged over 400 points in the early trade led by market heavyweights Infosys and Reliance Industries over earnings momentum. But the markets gave up all gains after shares of non-banking financial companies came under selling pressure, with Indiabulls Housing Finance falling over 14%.In global markets, European stocks pared gains and US futures turned lower as the investor confidence showed signs of ebbing. The mood was better in Asia, as Japanese, South Korean and Australian shares posted strong gains. Oil prices rose for a fourth day after industry data showed a surprise decline in U.S. crude inventories. Minutes of the last Fed meeting are due out later Wednesday are expected to show policy makers remain committed to further gradual tightening. Here are the latest updates from the markets:
The BSE Sensex closed 382.90 points, or 1.09%, down at 34,779.58 after shuttling between 35,605.43 and 34,727.16. The Nifty 50 ended 131.70 points, or 1.24%, lower at 10,453.05. During the day, the 50-share index hit a high of 10,710.15 and a low of 10,436.45.The BSE MidCap and SmallCap indices slumped 2.23% and 2.21%, respectively. All the sectoral indices on BSE, barring FMCG and IT, posted losses with auto and realty falling most at over 3%. Oil and gas, industrials, consumer discretionary goods, basic materials and consumer durables fell over 2%. FMCG was up 0.11% and IT was flat.Coal India, Wipro, Infosys, Hindustan Unilever and ITC were among the major gainers on the key indices, whereas Indiabulls Housing Fiance, Yes Bank, Adani Ports, Maruti Suzuki and Tata Motors were the top losers.
17 Oct 2018, 03:05:00 PM IST
Indiabulls Housing Finance shares plunge 13%
Shares of Indiabulls Housing Finance fell as much as 13.19% to Rs 788.60 per share. The company on Monday reported a profit of Rs 1,044.1 crore for the second quarter ended September 30, up 21.2% over the year ago period. The company’s profit after tax was Rs 861.3 crore during the same quarter last year
17 Oct 2018, 02:43:00 PM IST
Mahindra signs 2 agreements with Ford
Mahindra and Mahindra Ltd said that it has signed two agreements with Ford in connection with powertrain sharing and connected car solutions. Under the agreement on powertrain sharing, Mahindra will develop and supply a BS-VI-compliant low-displacement petrol engine to Ford India for use in its present and future vehicles. M&M shares traded 2.735 down at Rs 757.5.
17 Oct 2018, 02:20:00 PM IST
Gold prices surge to 2-year high on festive demand
Gold buyers in India, the biggest market after China, may give jewelry stores a miss in the run-up to the Diwali festival this year because of a surge in domestic prices to the highest level in more than two years. Gold futures on the Multi Commodity Exchange of India Ltd. have climbed 10% this year to the highest since July 2016, while overseas gold has dropped 6%. Read more
17 Oct 2018, 02:03:00 PM IST
UK PM met Ratan Tata as JLR warns on Brexit, diesel: Reuters
British Prime Minister Theresa May and business minister Greg Clark met Ratan Tata, patriarch of the Indian Tata family, a few weeks ago as its car brand Jaguar Land Rover warns about the effect of Brexit and diesel policy, Reuters reported, citing a government source. Tata Motors shares traded 1.35% down at Rs 183 per share.
17 Oct 2018, 01:45:00 PM IST
Market update: Sensex, Nifty erase gains
The BSE Sensex traded 67.38 points, or 0.19%, lower at 35,095.10, while the Nifty 50 fell 42.60 points, or 0.40%, to 10,542.15. The BSE MidCap and SmallCap indices fell 1.18%.Sixteen out of 19 sectoral indices on BSE traded lower with realty and auto losing most at over 2%. Oil and gas, consumer discretionary goods, basic materials and industrials fell over 1%. FMCG, IT and teck gained.Infosys, Wipro, Coal India and Hindustan Unilever were among the top gainers on key indices, whereas Yes Bank, Axis Bank, Maruti Suzuki and Indiabulls Housing Finance led losses.
17 Oct 2018, 01:24:00 PM IST
European stocks rise at open
European stock markets advanced at the start of trading on Wednesday, with London’s benchmark FTSE 100 index up 0.4 percent at 7,088.08 points. In the eurozone, Frankfurt’s DAX 30 won 0.3 percent to 11,811.47 points, while the Paris CAC 40 added 0.3 percent to 5,187.11 compared with Tuesday’s closing levels. AFP
17 Oct 2018, 01:15:00 PM IST
NIIT Technologies up nearly 2% after results
NIIT Technologies Ltd shares rose 1.74% to Rs 1,160 per share. The company reported a consolidated net profit of Rs 112 core in the quarter ended September 30 versus a profit of Rs 67.2 crore a year ago. Consolidated revenue from operations rose to Rs 907 crore in the September quarter, compared to Rs 737 crore in the same period last year.
17 Oct 2018, 12:49:00 PM IST
Havells India, Mindtree fall ahead of Q2 earnings
Shares of Havells India traded 3.34% down at Rs 588.80 per share ahead of its September-quarter results due later in the day. During the day, the stock hit a high of 622.90 and a low of Rs 587.30.ACC (up 0.96%), DCB Bank (up 0.06%) and Mindtree (down 2.6%) and Reliance Industries Ltd (0.29%) are among the companies that will be announcing their September quarter earnings today.
17 Oct 2018, 12:21:00 PM IST
JSW Steel shares down nearly 2%
Shares of JSW Steel traded 1.71% down at Rs 367.50 per share. The stock in early trade rose 1.1% to Rs 378.05 after Bloomberg reported, citing sources, that creditors of Bhushan Power and Steel Ltd are poised to name JSW Steel Ltd as the preferred bidder. JSW bid about Rs 19,600 crore, higher than rivals Tata Steel Ltd. and Liberty House Group. Read more
17 Oct 2018, 11:37:00 AM IST
Housing finance companies trade lower
Shares of housing finance companies fall. Indiabulls Housing Finance was down 9.31%, DHFl fell 9.66%, LIC Housing Finance fell 1.75%, Bajaj Finance lost 1.67%, Can Fin Homes was down 4.44%, PNB Housing declined 4.31% and Repco Home Finance fell 8.26%.Read: Liquidity crisis, slump in valuations may hit NBFC funding plans
17 Oct 2018, 11:27:00 AM IST
Cochin Shipyard shares struggle
Shares of Cochin Shipyard traded 0.69% down at Rs 397.30 per share. The company on Tuesday said its board has approved buyback of equity shares worth up to Rs 200 crore.
17 Oct 2018, 11:00:00 AM IST
Lakshmi Machine Works shares surge on buyback proposal
Shares of Lakshmi Machine Works Ltd traded 4.43% up at Rs 6,078.15 per share after the company said its board will consider a proposal to buy back shares. The stock rose as much as 8.07% to Rs 6,289.95 per share.
17 Oct 2018, 10:40:00 AM IST
Oil prices steady as industry data shows unexpected drop in inventories
Oil pries held gains after an industry report showed an unexpected drop in American crude stockpiles, while traders continued to assess simmering tensions between the U.S. and Saudi Arabia over a missing journalist. Futures in New York rose as much as 0.7 percent, advancing for a fourth day. The American Petroleum Institute was said to report inventories fell 2.13 million barrels last week, in contrast to forecasts for a gain in a Bloomberg survey before government data Wednesday. Read more
17 Oct 2018, 10:18:00 AM IST
Analysts maintain positive view on Infosys
Edelweiss Securities maintained Infosys as its top pick supported by robust deal-win momentum, digital-focused strategy, undemanding valuation and a high dividend yield of 4.7%. “We believe that sector is turning around and Infosys will be a key beneficiary,” it added. The brokerage maintained “BUY/SO” with a revised TP of Rs 880.Morgan Stanley analysts say the company is starting to show similar vertical trends to those of Tata Consultancy Services. Strong deal win and net headcount addition point to a strong demand environment, it added.Citi believes 2018 will be marginally better than 2017 for Indian IT, and says it prefers Infosys over TCS given better visibility post Q2.Macquarie raises PT to Rs 775, retaining “outperform” rating, but says Infosys still remains a work in progress, and, hence, 20% valuation discount to TCS is warranted.Jefferies raises PT on US-listed stock to $11.40 from $11, by “buy” rating. EBIT margin of 23.7% was 80bps below estimate and investments are likely to accelerate in H2 vs H1 suggesting further margin pressure at least in the near-term, said Jefferies.Prabhudas Lilladher says, “We believe Infosys valuations are reasonable considering the improving growth trajectory. We see possibility of Infosys narrowing its discount wrt to TCS owing to improved growth and strong aggression on deal wins. Our TP is retained at Rs790/sh (18x Sep20E EPS).”Motilal Oswal Securities maintained “buy” with a TP of Rs 800. “Visibility on revenue growth lent by 2Q execution and deal wins makes a case for some convergence, though the respective executions on margins will continue to warrant a gap,” it added.33 of 45 brokerages rate the stock “buy” or higher, nine “hold” and three “sell” or lower; their median PT is Rs 763, according to Reuters.
17 Oct 2018, 09:57:00 AM IST
Hero MotoCorp shares recover, surge 3%
Hero MotoCorp shares opened lower, but soon surged as much as 3.21% to Rs 2992 per share. The company on Tuesday reported a 3.38% year-on-year decline in net profit to ₹976.28 crore during the September quarter (Q2) due to higher raw material costs and other expenses amid subdued demand in key markets of Kerala and West Bengal.
Den Networks shares gain, Hathway Cable falls on RIL deal buzz
Shares of Den Networks rose 2.29% to Rs 75.95 per share, while Hathway Cable and Datacom traded 2.47% down at Rs 29.60 per share. According to an Economic Times report, Reliance Industries Ltd (RIL) could buy more than a 25% stake in each of these two companies to boost its high-speed broadband network.
Shares of Adani Enterprises rose as much as 2.40% to Rs 161.65 per share on BSE after the company said it has signed an agreement with French oil major Total SA to jointly develop multi-energy offerings to the Indian energy market. Total and Adani will create a Joint Venture with an objective to build a retail network of 1,500 service stations over the period of 10 years.
17 Oct 2018, 09:25:00 AM IST
RIL shares up 1% ahead of Q2 earnings today
Shares of Reliance Industries rose 1% to Rs 1,174.60 ahead of its September quarter earnings due later on Wednesday. According to a Bloomberg poll of seven brokers, RIL’s consolidated net sales is expected to come in at ₹1.41 trillion; net profit is estimated at ₹9,630.20 crore by 10 brokers.
17 Oct 2018, 09:20:00 AM IST
Infosys shares rise over 3% on Q2 results
Infosys shares rose as much as 3.53% to Rs 721 after the company posted a surprise 3.2% dollar revenue growth in the September quarter (Q2) from the preceding three months, the fastest sequential growth by India’s second-largest information technology (IT) services company in more than a year.
The rupee opened marginally higher against the US dollar amid continued recovery in global equities. At 9.10am, the rupee was trading at 73.47 a dollar, down 0.1% from its Monday’s close of 73.47. The currency opened at 73.34 a dollar. The 10-year gilt yield stood at 7.885% from its previous close of 7.873%. So far this year, the rupee has declined 13%, while foreign investors have sold $4.36 billion and $8.42 billion in the equity and debt markets, respectively.
17 Oct 2018, 08:40:00 AM IST
RIL Q2 results today: Reliance to get boost from Jio, Retail
Oil: US oil prices extended gains after industry data showed a surprise decline in US crude inventories. US WTI crude was up 35 cents, or 0.5 %, at $72.27 a barrel, having settled up 14 cents. Brent crude was up 36 cents, or 0.4%, at $81.77 a barrel, after settling up 63 cents the session before. The global benchmark, which hit a more than two-week low late last week as equity markets dropped, is trading about $5 below a four-year high of $86.74 marked on Oct. 3.Gold: Global gold prices held steady despite a rise in equities, with investors waiting for minutes from the US Federal Reserve’s latest policy meeting for any fresh clues on the pace of interest rate hikes. Spot gold was up 0.1% at $1,224.70 an ounce. On Monday, it touched its highest since July 26 at $1,233.26 an ounce. US gold futures were down 0.2% at $1,228.30 an ounce.Metals: Shanghai copper extended losses for a second day on Wednesday, curbed by tepid spot trading amid increasing stockpiles at the futures exchange. Three-month LME copper edged up 0.1% to $6,221 a tonne, and the most-traded copper contract for November delivery on the Shanghai Futures Exchange dipped 0.5% to 50,270 yuan ($7,274.75) a tonne. Reuters
17 Oct 2018, 08:18:00 AM IST
Opening bell: Cues to look out for before trading today
■ US stocks rose sharply on Tuesday after the release of strong quarterly results from some of the largest U.S. companies helped the market recover from last week’s sell-off. Stocks in Asia were higher on Wednesday morning following a strong bounce on Wall Street overnight.■ Hari Sankaran, the ousted vice chairman of Infrastructure Leasing and Financial Services Ltd (IL&FS), has suggested to a court that an independent foreign agency, rather than a local one, be hired to probe the company’s affairs leading to the supersession of its board earlier this month.■ Infosys Ltd’s second-quarter earnings came ahead of analysts’ expectations as the company posted a 3.2% sequential dollar revenue growth in the July-September quarter, primarily on improved clients spend from its banking clients in the US.■ Hero MotoCorp Ltd, the world’s largest two-wheeler maker, posted a 3.4% drop in quarterly profit, hurt by higher expenses amid a depreciating rupee.■ All-India cement prices declined in October by ₹2/bag on a month-on-month basis to ₹326/bag.■ Federal Bank Ltd reported a subdued 0.88% rise in its September-quarter net profit as it provided higher provisions to cover its bad loans. Net profit for the quarter stood at Rs 266.04 crore compared to Rs 263.70 crore a year ago. That’s higher than the Rs 253.50 crore estimated by analysts tracked by Bloomberg.■ The government has increased the rate of interest for General Provident Fund (GPF) and other related schemes by 0.4 percentage points to 8% for the October-December quarter.■ India’s oil demand is expected to rise by 5.8 million barrels per day (bpd) by 2040, accounting for about 40% of the overall increase in global demand during the period, OPEC’s secretary general said on during the weekend.■ Earnings corner: ACC, DCB Bank, Havells India, Mindtree and Reliance Industries Ltd are among the companies that will be announcing their September quarter earnings today. Harsha Jethmalani/MintWith inputs from Reuters