Closing bell: Sensex, Nifty end lower; Axis Bank, SBI top gainers
11 min read.Updated: 05 Nov 2018, 04:13 PM ISTNirav Vyas
The BSE Sensex closed 60.73 points down at 34,950.92, while the Nifty 50 ended 24.80 points lower at 10,528.20. Here are the highlights from the markets
Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 declined marginally on Monday amid negative cues from global markets over uncertainty about US-China trade talks. The Indian rupee weakened against the US dollar, tracking losses in Asian currencies. Shares of oil and energy companies such as Indian oil and NTPC declined, offsetting gains in pharma and realty sectors. Shares of NBFCs along with some private banks such as ICICI Bank and IndusInd banks also contributed to losses. However, Axis Bank shares rose over 2% after Q2 results.In global markets, stocks in Europe struggled after Asian shares declined as optimism over a potential U.S.-China trade deal receded. Futures on the Dow, Nasdaq and S&P 500 fell alongside those in Asia after White House economic adviser Larry Kudlow downplayed the potential for a quick deal with China, reported Bloomberg. Oil prices fell as traders keenly await the outcome of negotiations on possible waivers of US sanctions on Iran. The sanctions will be reimposed today covering Iran’s oil, banks, insurance and shipping sectors. Here are the highlights from the markets:
05 Nov 2018, 03:35:00 PM IST
Closing bell: Sensex, Nifty close lower
The BSE Sensex closed 60.73 points, or 0.17%, down at 34,950.92, while the Nifty 50 ended 24.80 points, or 0.24%, lower at 10,528.20. The BSE MidCap and SmallCap indices fell 0.47% and 0.28%, respectively.Among the sectoral indices on BSE, realty, basic materials, energy and bankex advanced, while power, oil and gas, utilities and healthcare declined.SBI, Axis Bank, Wipro, UPL and Reliance Industries were among the top gainers on the key indices, whereas IndusInd Bank, NTPC, Cipla, Indian Oil and Indiabulls Housing Finance were major losers.
05 Nov 2018, 03:22:00 PM IST
RIL shares up over 1%
Shares of Reliance Industries traded 1.28% up at Rs 1,087.95 per share. HSBC Holdings Plc has executed a trade finance transaction using blockchain for an export by Reliance Industries Ltd (RIL) to US-based Tricon Energy. The blockchain-enabled letter of credit (LC) transaction substantially reduced the time taken for such deals, RIL said in a press release. Read more
05 Nov 2018, 03:00:00 PM IST
GAIL (India) Q2 profit jumps 50%, tops estimates
State-run gas utility GAIL (India) Ltd posted a 50% jump in second-quarter profit on Monday, boosted by higher revenue from its natural gas marketing business. Profit came in at Rs 1,963 crore for the three months ended September 30, compared with Rs 1,310 crore a year earlier, the company said. Analysts on average had expected a profit of 15.31 billion rupees, according to Refinitiv data. Revenue from operations jumped 55.3% to Rs 19,275 crore. Shares fell 1.2% to Rs 364.40 per share after the announcement, but soon recovered to trade 0.18% to Rs 369.70 per share.
05 Nov 2018, 02:52:00 PM IST
Nifty sectoral indices
05 Nov 2018, 02:20:00 PM IST
NBFCs, HFCs trade lower despite RBI relief
Shares of non-banking finance companies and housing finance companies traded lower as Corporate Affairs Secretary Injeti Srinivas raised concerns that NBFCs are facing liquidity stress following a string of defaults at IL&FS. Shares of Indiabulls Housing Finance fell 6.7%, DHFL 5.12%, Edelweiss Financial 3.6%, HDFC 2.5%, Repco Home Finance 3.5% and PNB Housing Finance 0.9%.This is despite RBI’s announcement on Friday that allowed banks to provide partial credit enhancement (PCE) to bonds issued by systemically important NBFCs and HFCs. Read more
05 Nov 2018, 01:50:00 PM IST
European stocks struggle, US futures fall
Stocks in Europe struggled on Monday after Asian shares declined as optimism over a potential U.S.-China trade deal receded. Automakers and financial services companies were among the biggest decliners in the Stoxx Europe 600 Index, with futures on the Dow, Nasdaq and S&P 500 falling alongside those in Asia after White House economic adviser Larry Kudlow downplayed the potential for a quick deal with China.The Stoxx Europe 600 Index dipped less than 0.05%, the first retreat in more than a week. Futures on the S&P 500 Index fell 0.3%. The MSCI All-Country World Index declined 0.3%, the first retreat in a week. The MSCI Emerging Market Index sank 1.1%, the first retreat in a week and the largest tumble in almost two weeks. Bloomberg
05 Nov 2018, 01:20:00 PM IST
Bharti Airtel’s African safari takes a curious turn
Bharti Airtel shares traded 0.94% down at Rs 299.60. During the day, the stock hit a high and a low of Rs 305.45 and Rs 298, respectively.
Bharti Airtel's African safari takes a curious turn. As investors wait for the African unit's IPO, it's heartening that Airtel has managed to raise considerable equity and pare down debt. https://t.co/jECj5AFzro@mobis_philipose
Cipla Ltd posted a nearly 11% fall in second-quarter profit on Monday, much lower than analyst expectations. Profit fell to Rs 377 crore in the quarter ended September 30, compared with Rs 423 crore a year ago, Cipla said. That missed analysts average expectation of Rs 456 crore, according to Refinitiv data. Net sales fell 1% to Rs 3,948 crore. Shares fell as much as 1.55% to Rs 599.05 per share.
05 Nov 2018, 12:57:00 PM IST
Volatility, price fluctuations to stay: Kejriwal Research
“Volatility and price fluctuations are here to stay for the next three to six months, mainly as investors bet on all the possible outcomes in the run-up to the state and national polls,” said Arun Kejriwal, founder of Kejriwal Research & Investment Services Pvt. in Mumbai. “Still, we advise buying on dips as rising earnings and the recent fall in stock prices have made the valuations reasonable.”
05 Nov 2018, 12:45:00 PM IST
Strides Pharma shares gain on completion of USFDA inspection
Shares of Strides Pharma Science traded 2.79% up at Rs 431.50. In early trade, the stock advanced as much as 4.32% to Rs 437.95 per share. The company on Friday said that the USFDA has successfully completed inspection at the company’s formulations facility in Bangalore with zero observations.
05 Nov 2018, 12:05:00 PM IST
Worst rout in 7 years may end for Indian bonds on RBI binge
The Reserve Bank of India bought Rs 86,000 crore ($11.8 billion) of bonds between May and October, and plans to inject Rs 40,000 crore this month to replenish liquidity drained by its currency defense and a seasonal cash crunch. With India’s central bank emerging as the biggest buyer of government debt, some traders are calling time on a rout that’s lasted more than a year and sent benchmark yields soaring to a four-year high.
The yield on the benchmark 10-year bond fell 17 basis points in October, its first decline in three monthshttps://t.co/I5HgVaY7se
Axis Bank shares traded 2.90% up at Rs 627.65 per share. Intraday, the stock rose as much as 3.76% to Rs 632.90 per share.Motilal Oswal said, “AXSB’s performance underscores the asset quality recovery that is getting evident across other corporate banks. With an improving outlook on fresh slippages/credit cost and clarity at top management, we expect earnings to start normalizing 2HFY19 onward.” The brokerage maintained “Buy” with the TP of Rs 750 per share.Prabhudas Lilladher said, “Power resolutions will be important to drive asset quality, but despite that we will see gradual improvement in core operations as credit cost normalized, positive bias on NIMs and improving loan growth.” It rated the stock “Accumulate” and revised TP to Rs 681 per share from Rs 624 per share.Sharekhan by BNP Paribas said, “Consecutive quarters of strong performance in terms of asset quality, and stable margins are positive. Even though the provisions and slippages may continue to be at elevated levels, the improvement is likely to continue in the medium term as we believe that the NPA cycle has peaked for Axis Bank. We believe that there are attractive opportunities for Private corporate banks like Axis to gain market share and quality clients in the medium term and the outlook appears positive.”
05 Nov 2018, 11:10:00 AM IST
Hindalco shares up over 1% after earnings
Hindalco Industries shares traded 1.48% up at Rs 243.90 per share. On Friday, Hindalco reported a standalone net profit for the September quarter, which along with profits from Utkal Alumina stood at ₹725 crore, up from ₹470 crore during the same period of the last year.
The completion of the Aleris acquisition by Hindalco's US arm Novelis is a key event to watch out for. https://t.co/5GjtPrpYSg
Future Retail shares traded 0.73% lower at Rs 499 per share after rising as much as 1.85% to Rs 511.95 per share. The Economic Times reported that Amazon is set to acquire a minority stake in Future Retail next week, valuing the deal at about Rs 2,500 crore. The companies started exploring an alliance in January this year when Future Group founder Kishore Biyani first met Amazon founder Jeff Bezos at his Seattle headquarters, added the report.
05 Nov 2018, 10:38:00 AM IST
October services activity jumps, boosted by stronger orders
Activity in India’s dominant services sector increased at its fastest pace in three months in October, driven by a strong pick-up in new business, a private survey showed on Monday. The Nikkei/IHS Markit Services Purchasing Managers’ Index rose to 52.2 last month from a four-month low of 50.9 in September, holding above the 50-mark that separates growth from contraction for five straight months. Read more
05 Nov 2018, 10:27:00 AM IST
KEC International shares trade lower after Q2 number, Adani deal
KEC International Ltd shares traded 2.77% lower at Rs 297.15 per share. Intraday, the stock fell as much as 4.77% to Rs 291 per share. Adani Transmission (India) Ltd has signed an agreement to buy entire stake in KEC International’s Rajasthan-based power transmission arm at an enterprise value of ₹227.5 crore.Moreover, the company reported a consolidated net profit of Rs 97.81 crore in the September 2018 quarter, up from Rs 89.37 crore last year. Consolidated revenue from operations rose to Rs 2,408 crore in the quarter ended September 30, from Rs 2,132 crore last year.
05 Nov 2018, 09:57:00 AM IST
IOCL shares down 4% as Q2 profit falls
Indian Oil shares fell as much as 4.52% to Rs 141.50 per share. The company posted a 12.2% fall in its second-quarter profit on Friday, missing estimate by a wide margin, dented by forex expenses and raw material costs. Net profit came in at Rs 3,247 crore in the quarter ended Sept. 30, compared with Rs 3,696 crore a year earlier. Average gross refining margin for the period dropped to $8.45 per barrel from $6.08 per barrel a year earlier.
05 Nov 2018, 09:48:00 AM IST
Market update: Sensex, Nifty trim losses
The BSE Sensex traded 26.70 points, or 0.08%, lower at 34,984.95, while the Nifty 50 fell 19.95 points, or 0.19%, to 10,533.05. The Sensex opened 107 points lower at 35,011.65 and hit a high and a low of 35,123.41and 34,848.49, respectively. The Nifty 50 opened 6 points up at 10,558.75. It hit a high of 10,558.80 and a low of 10,498.40.The BSE MidCap and SmallCap indices gained 0.36% and 0.37%, respectively. Among the sectoral indices on BSE, realty, healthcare, IT and teck gained, while power, utilities, energy and oil and gas declined.
05 Nov 2018, 09:30:00 AM IST
ONGC shares up over 4% on Q2 numbers
ONGC shares advanced as much as 4.46% to Rs 164.70 per share. The company posted a 61% jump in second-quarter profit on Saturday, with higher crude oil prices helping it to beat forecasts. ONGC’s net profit stood at Rs 8,265 crore in the quarter, compared with Rs 5,130 crore a year earlier.
05 Nov 2018, 09:22:00 AM IST
Axis Bank shares rise nearly 4% post Q2 earnings
Axis Bank shares rose as much as 3.76% to Rs 632.90 per share. The bank’s net profit rose 82.6% year-on-year (y-o-y) to ₹789.6 crore in the September quarter because of higher net interest income and lower provisions, the private sector lender reported on Friday. NIM stood at 3.59%, down 12 basis points (bps) y-o-y and 8bps sequentially. Other income rose 3.5% to ₹2,678.38 crore in the three months to September 2018.
Axis Bank investors are in for a treat as the bank showed an improvement in asset quality for the third straight quarter even as Punjab National Bank's worsened. https://t.co/unp4ZfzUdB
The rupee weakened against the US dollar, tracking losses in Asian currencies amid speculation about a US-China trade deal and after better-than-expected US payrolls. At 9.05am, the rupee was trading at 72.78 a dollar, down 0.52% from its Friday’s close of 72.44. The currency opened at 72.88 a dollar. The 10-year government bond yield stood at 7.78% from its previous close of 7.781%. So far this year, the rupee has declined 12.24%, while foreign investors have sold $5.63 billion and $8.38 billion in the equity and debt markets, respectively.
05 Nov 2018, 08:55:00 AM IST
FPI outflow hits 2 year high in October
Foreign investors pulled out a massive ₹38,900 crore from the capital markets in October, the steepest outflow in nearly two years, on rising crude oil prices, depreciating rupee and worsening current account deficit. With this, the total outflow from the capital markets (equity and debt together) has reached over ₹1 trillion so far this year. According to the latest depository data, FPIs withdrew a net sum of ₹28,921 crore from equities in October and ₹9,979 crore from the debt market, taking the total to ₹38,900 crore. This was the highest outflow since November 2016, when FPIs had pulled out ₹39,396 crore from the capital markets. Read more
05 Nov 2018, 08:40:00 AM IST
Does fall in crude oil prices signal end of Sensex slump?
Prices of Brent crude oil, the global benchmark, fell 15% to $72.83 a barrel on Friday from its recent high of $85.83 per barrel. The decline has led to a rebound in domestic stock markets. Investors are hoping lower oil prices will benefit the country’s current account deficit (CAD), ease pressure on the rupee and spur a return of FPI inflows.The rupee has clawed back some of its losses and bond prices have rallied as lower oil prices should mean lower inflation. Add to that a glimmer of hope that a US-China trade deal may finally be in the offing and the question that arises is: Is the correction in stock prices over? Read more
05 Nov 2018, 08:34:00 AM IST
Asia stocks fall on trade concerns
Asian stocks fell after a reversal in U.S. equities on Friday, amid concern over whether trade tensions with China can be mended. The pound jumped on news of further progress in Brexit negotiations. Shares in Japan and Hong Kong underperformed and U.S equity-index futures dropped as optimism on a trade breakthrough at the end of last week tempered after White House economic adviser Larry Kudlow downplayed the potential for a quick deal. The yuan pared losses as President Xi Jinping said China will further cut import tariffs.Japan’s Topix index fell 0.6%. Australia’s S&P/ASX 200 was little changed. South Korea’s Kospi index declined 1.6%. Hong Kong’s Hang Seng Index fell 1.7%. Shanghai Composite Index was down 0.2%. S&P 500 Index futures lost 0.2%. The S&P 500 Index closed down 0.6%. The Nasdaq 100 Index fell 1.5%.The yen was little changed at 113.20 per dollar. The offshore yuan slipped 0.1% to 6.9025 per dollar. The Bloomberg Dollar Spot Index was little changed. The euro traded at $1.1388. The pound gained 0.1% to $1.2988. Bloomberg