PremiumOTHERS : Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 extended losses for the second session on Tuesday dragged mainly by PSU bank stocks. The Nifty 50 breached 11,300. The Nifty PSU Bank Index fell over 5.44% after shares of Bank of Baroda fell 17% on the government’s proposal to merge the bank with Dena Bank and Vijaya Bank. The Indian rupee also fell further today and traded near the 72.8 mark. However, global markets shrugged off trade war concerns. Asian stocks jumped in late trading and S&P 500 futures edged higher with European shares after teh US set its next round of tariffs at 10% and Beijing pledged to retaliate. Meanwhile, FIIs sold equities worth Rs 106.54 crore on net basis on Monday, while DIIs shed shares worth Rs 180.36 crore, provisional data showed. Here are the latest updates from the markets:
BSE Sensex closed lower by 294.84 points, or 0.78%, at 37,290.67, while the Nifty 50 fell 98.85 points, or 0.87%, to close at 11,278.90. Meanwhile, BSE MidCap and SmallCap plunged 1.49% and 1.51%, respectively.All the sectoral indices on BSE, except FMCG, declined with realty losing most at 3.13%. Power, telecom, industrials, utilities and bankex fell up to 2%. FMCG was up 0.86%.In the Sensex basket, 7 shares advanced, while 24 declined. HUL, Wipro, Yes Bank and ONGC were top gainers, whereas SBI, Tata Motors, Bajaj Auto and Axis Bank were major losers. In the 50-shares basket, 9 stocks gained, while 41 fell.
Gold prices edged higher by Rs 10 to Rs 31,610 per 10 gram on Tuesday helped by sustained buying by local jewellers, even as a weak trend prevailed overseas. Silver prices too firmed up by Rs 20 to Rs 37,700 per kg due to increased offtake by industrial units and coin makers.In Delhi, gold rates of 99.9% and 99.5% purity edged up by Rs 10 each to Rs 31,610 and Rs 31,460 per 10 gram, respectively. The precious metal had gained Rs 180 in yesterday’s trade. Following gold, silver ready rose by Rs 20 to Rs 37,700 per kg and weekly-based delivery by Rs 110 to Rs 37,305 per kg. Silver coins, however, continued to trade at the previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces. PTI
India sees rupee value of 72-73 against the US dollar as “fair value,” reported Reuters, citing a senior finance ministry source said on Tuesday, after the government announced a raft of measures last week to stabilise the falling local currency. The rupee had fallen more than 11 percent against the dollar this year and is the worst performing Asian currency. It was trading at 72.40 to the dollar, compared with Monday’s close of 72.51. “The rupee could again come under pressure once the new US sanctions on Iran comes into force,” due to a possible rise in oil prices, the source who declined to be named told Reuters.
While earnings recovery should support the ABFRL stock, investors would also do well to keep track of the new businesses and progress on loss reduction
While earnings recovery should support the ABFRL stock, investors would do well to keep track of new businesses and progress on loss reduction, writes @sree_rsr https://t.co/EqSN72LWUO
— Mint Mark to Market (@livemint_m2m) September 18, 2018
Shares of Indian Hume Pipe Co. Ltd rose 2.38% to Rs 277.80 after the company said a letter of acceptance for a contract worth Rs 221 .72 crore from Madhya Pradesh Jal Nigam Maryadit.
BSE Sensex traded lower by 148.74 points, or 0.40%, to 37,436.77, while the Nifty 50 fell 50.95 points, or 0.45%, to 11,326.80. Underperforming the benchmark, BSE MidCap and SmallCap fell 1.24% and 1.14%, respectively.All the sectoral indices on BSE, except FMCG and consumer durables, declined with realty losing most at 2.59%. Telecom, industrials, power, bankex and capital goods fell over 1%.
The Ircon IPO was subscribed 65% so far on the second day of the share sale today. As of 2.15pm, the Ircon IPO received bids for 6,462,210 shares against the total issue size of 9,905,157 shares, according to NSE data. The Ircon IPO, which has a price band of Rs 470-475 per equity share, will close on 19 September.At the higher end of the price band, the shares are estimated to fetch over Rs 470 crore. Read more
India and the US are negotiating a trade package to remove long-standing irritants to ties, Reuters reported citing sources familiar with the talks. Indian farmers and US manufacturers of medical devices could be among the main winners in the trade package under negotiation, noted the report. “We are closely negotiating a discrete package of trade issues. It will amount to a pretty substantive agreement,” Reuters quoted said a source with knowledge of the negotiations. The source said the two sides expected to close the deal in the next few weeks.
The real effective depreciation of the rupee this year, compared to December 2017, was 6-7%, the International Monetary Fund (IMF) said, adding, it would jack up the prices of imported goods such as oil and petroleum products, potentially putting an upward pressure on inflation.Since the beginning of the year, the Indian rupee “has lost about 11% of its value in nominal terms vis a vis the US dollar”, IMF spokesperson Gerry Rice said. He, however, said the currencies of many of India’s trading partners, including those in the emerging markets, too, fell against the dollar. Read more
Europe’s main stock markets steadied at the open on Tuesday, with London’s benchmark FTSE 100 index down 0.1 percent to 7,291.53 points. In the eurozone, Frankfurt’s DAX 30 was flat at 12,097.19 points and the Paris CAC 40 was unchanged at 5,348.49, compared with Monday’s closing levels. AFP
Bank of Baroda shares fell as much as 14.2% on Tuesday after the government’s decision to merge it with Dena Bank and Vijaya Bank failed to enthuse investors. Shares of Dena Bank and Vijaya Bank rose sharply as the smaller peers are expected to benefit from the merger. Dena Bank shares were locked in the upper circuit at 19.9% in the first half hour of trading. Over 1.7 million shares changed hands, ahead of their 30-day average volume of 1.5 million shares. Brokerages were, however, not very hopeful about the prospects for Bank of Baroda.Deutsche Bank analysts downgraded the stock to “hold” from “buy”, cutting its price target to Rs 145 from Rs 180. DB analysts see the bank’s shareholders facing challenges such as likely dilution in focus of the bank’s management towards the merger and away from growth. Shareholders of Vijaya Bank and Dena Bank may be given some premium at the cost of Bank of Baroda shareholders, they added. CIMB analysts noted that the merger is a positive step towards the consolidation of state-run banks, and synergies from the merger will result in operational efficiencies and better customer service.Jefferies analysts “don’t think the merged entity comes off terribly worse off, at least on paper, though a smooth three-way merger is always a tall ask.”
The merger is being hailed as positive in the long term by banking experts.
— Livemint (@livemint) September 18, 2018
For investors in Bank of Baroda, that is cold comfort#BankofBaroda #DenaBank #VijayaBank https://t.co/uyXnY3mksp
Infosys shares traded 0.685 down at Rs 721.60. The company disclosed that the arbitral tribunal asked Infosys to pay its former CFO Rajiv Bansal the outstanding severance amount of Rs 12.17 crore with interest.
Shares of Hindustan Unilever Ltd rose as much as 3.5% to Rs 1,660.80, their highest in over 2 weeks. The stock has posted its biggest intraday percent gain since 16 May. Nearly 1.4 million shares exchange hands, compared with 30-day moving average of 1.4 million shares. As of last close, stock had risen 17.4% this year. Brokerages say demand outlook remains strong.Deutsche Bank Research analysts say Q2 will largely be a comparable quarter after seven quarter. HUL’s demand environment continues to sustain in line with previous quarter. Macquarie says HUL has raised prices in home care portfolio to offset margin pressure due to rupee depreciation, while GST-related rationalization and cost savings continue to boost margin.CLSA notes no major impact from Kerala floods, outlook for demand also remains strong with near normal monsoons, pre-election spending which should boost rural consumption.Deutsche Bank and Macquarie maintained their ratings on stock. Sixteen of 41 analysts covering stock rate it “buy” or higher, 14 rate “hold”, 11 rate “sell” or lower, according to Reuters data. Reuters
Pressures from the fast depreciating rupee and stubbornly high global crude oil prices have had their effect on retail inflation
Imported inflation has surged recently due to rising oil prices and the rupee's nosedive to historic lows. Read here by @aparnaviyer02 https://t.co/ZtJJuI4m4I
— Mint Mark to Market (@livemint_m2m) September 18, 2018
Aurobindo Pharma Ltd said that it has received approval from the South African Health Products Regulatory Authority for its Dolutegravir, Lamivudine and Tenofovir Disoproxil Fumarate tablets, 50mg/300mg/300mg, the first-line preferred regimen for HIV patients as per latest WHO guidelines. Shares traded 0.22% up at Rs 791.60 after hitting a high of Rs 800.
ICRA shares traded 0.79% up at Rs 3,725, after hitting a high of Rs 3,807 in the early trade. The company said it has received shareholders approval to buyback shares.
Tata Motors shares fell 1.58% to Rs 256.10. Jaguar Land Rover said it will go down to a three-day week at its Castle Bromwich plant in central England just days after its boss warned about the impact of Brexit and diesel policy. The Castle Bromwich facility will operate a three-day week from October until the beginning of December in a move which will avoid job cuts, a spokeswoman said.
Shares of Idea Cellular gained as much as 2.22% to Rs 48.70. Vodafone Idea Ltd on Monday said that it will merge Aditya Birla Telecom Ltd, which holds 11.15% stake in telecom infrastructure firm Indus Towers, with it.
Shares of Bank of Baroda declined 10% to Rs 121, while shares of mid-size PSU banks gained after the government on Monday proposed to merge three state-run banks—Bank of Baroda, Dena Bank and Vijaya Bank—in order to reduce the amount of capital it needs to pump into these lenders and help clean their balance sheets.Dena Bank surged 20%, Uco Bank 11%, Central Bank of India 10%, Indian Overseas Bank 10%, Corporation Bank 6%, Allahabad Bank 5%, Syndicate Bank 5%, Andhra Bank 2.5%, Oriental bank of Commerce 2%, Vijaya Bank 6%.
Making a mockery of the five-point plan that the government announced on Friday, the #rupee weakened nearly 1% from its previous close #Sensex #Nifty50https://t.co/WmekMUI6zW
— Livemint (@livemint) September 18, 2018
The Indian rupee was trading little changed against the US dollar on Tuesday as traders awaiting further government measures to support the currency. The currency fell nearly 1% in the previous trade. At 9.11am, the rupee was trading at 72.52 a dollar, down 0.02% from its Monday’s close of 72.51. The home currency opened at 72.60 per dollar. The 10-year bond yield stood at 8.092%, from its previous close of 8.098%. Bond yields and prices move in opposite directions. Read more
On the first of IPO on Monday, the Ircon IPO was subscribed 29%, according to NSE data. The institutional investors segment was subscribed 4% while retail investors 86% on Day 1. The ircon IPO, which has a price band of Rs 470-475 per equity share, will close for subscription on 19 September. At the higher end of the price band, the shares are estimated to fetch over Rs 470 crore. Read more
Gold prices inched lower, after rising 0.6% in the previous session, as the dollar rose after US imposed a new round of tariffs on Chinese imports. Spot gold fell 0.1% at $1,199.20 an ounce. US gold futures were down 0.2% at $1,203.90.Oil markets dropped on Tuesday as the latest escalation in the Sino-US trade war clouded the outlook for demand, although concerns over tightening supply offered prices some support. Brent crude futures had declined 27 cents, or 0.35%, to $77.78 per barrel. US WTI crude fell 32 cents, or 0.46%, to $68.59 per barrel.London copper drifted lower for a third session running after US imposed new tariffs on about $200 billion of Chinese imports as President Donald Trump escalates his trade war with Beijing. Three-month copper on the London Metal Exchange was down 0.4% at $5,922 a tonne. Zinc outperformed other metals, rising 0.8% $2,338 a tonne in London and climbing 1.3% to 20,810 yuan in Shanghai. LME aluminium gained 0.2% to $2,035 a tonne. Reuters
■ The Trump administration will slap a 10% tariff on about $200 billion in Chinese goods next week and more than double the rate in 2019, deepening what’s shaping up to be a prolonged trade war between the world’s two biggest economies.■ Asian shares dropped after the US escalated the trade war with China imposing tariffs on about $200 billion worth of Chinese imports. Overnight, US stocks closed lower. S&P 500 fell 0.6% to 2,888.■ The government has decided to merge Bank of Baroda, Dena Bank and Vijaya Bank. The merged entity, comprising two relatively stronger banks and a weak one, will be the third-largest lender in India.■ Electricity spot prices in India surged to a more than eight-year high because of lower quantum of traded power, higher demand, reports Mint.■ Another dose of incentives for sugar mills may be on the cards, reports Business Standard. According to the report, the package being considered includes raising minimum selling prices and loan restructuring.■ Jaguar Land Rover, a unit of Tata Motors Ltd said it will go down to a three-day week at its Castle Bromwich plant in central England just days after its boss warned about the impact of Brexit and diesel policy, reports Reuters.■ Vodafone Idea Ltd will merge Aditya Birla Telecom Ltd, which holds 11.15% stake in telecom infrastructure firm Indus Towers, with it.■ Tata Global Beverages expects more than a third of its sales to come from premium products, shoring up margins in the next 2-4 years, reports The Hindu Business Line.■ McLeod Russel, which is reducing its tea estates portfolio, has concluded an agreement to sell two estates in Assam, reports Business Standard.■ The Reserve Bank rejected Bank of Maharashtra request to set off over Rs2,543 crore losses against the balance in its share premium account, reports PTI. R. Sree RamWith inputs from Reuters
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