Sensex closes sub-35,000; Nifty ends 0.6% lower15 min read . Updated: 29 Jun 2020, 03:47 PM IST
- Barring Nifty FMCG and pharma, all sectoral indices end in the red
- Axis Bank, Tech Mahindra, SBI among worst hit on Sensex
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Shares of Emami Ltd fell 6.6% on Monday to ₹205.75 apiece after the company reported weak results for the March quarter.
The fast moving consumer goods company on Friday reported a consolidated net profit of ₹22.75 crore for the March quarter, down 59.4% from the year-ago period due to a sharp decline in demand.
Revenue for the March quarter for the maker of Navratna oil and BoroPlus cream stood at ₹532.68 crore, down 16.8% on year.
Shares of Vodafone India rose 6.7% to ₹11.15 apiece on the BSE on Monday amid weakness in the broader market. The company will announce its Q4 results on Tuesday.
Shares of Bharat Forge slumped 10.9% to ₹314.10 apiece on the BSE on Monday after the company reported a consolidated net loss of ₹68.59 crore for the quarter ended March due to lower sales and one-time exceptional loss. The company had posted a net profit of ₹324 crore in year-ago quarter.
Consolidated revenue from operations declined 34.8% year-on-year to ₹1,742 crore during the quarter.
Mines Ministry has set up an inter-ministerial committee to work out on import substitution of aluminium, CNBC TV-18 reported. China's accounts for 16% of India's aluminium imports.
Pratt & Whitney on Monday said more than 80% of A320neo engines have been modified and are performing without glitch, CNBC TV-18 reported.
The company also said it will meet the Indian aviation regulator's 31 August deadline on engine modification.
Credit rating agency S&P Global Ratings on Monday affirmed China's sovereign credit ratings at 'A+/A-1' with a stable outlook amid the coronavirus outbreak, Reuters reported.
S&P said China is likely to maintain above-average economic growth relative to other middle-income economies in the next few years.
Barring M&M, all Nifty Auto constituents were in the red.
Around 60 stocks touched their respective 52-week highs on NSE on Monday.
AstraZeneca Pharma, Alok Industries, Andhra Cements, GTN Industries, among others, touched highs.
Benchmark Nifty was trading 0.9% at 10,286.80 points because of a selloff in the market.
RBI approaches government on extension of tenure of external members of the Monetary Policy Committee, CNBC-TV18 reported citing sources.
Shares of National Aluminum Co Ltd (Nalco) declined as much as 6% on Monday after the company reported a 57% year-on-year fall in its March quarter consolidated net profit to ₹100.51 crore.
Income during the quarter fell 28.7% to ₹2,042.27 crore.
Japan's government spokesman Yoshihide Suga on Monday said it was crucial to maintain the current G7 framework which comprises France, Germany, Italy, Japan, the US, the UK, and Canada.
US President Donald Trump in May announced he would postpone a Group of Seven summit and expand the list of invitees to include Australia, Russia, South Korea and India.
Tyre maker MRF Ltd on Monday reported a 130% jump in its consolidated net profit to ₹679 crore for the March ended quarter. Revenue, however, fell 11% to ₹3,685.2 crore.
European stocks edged higher along with S&P 500 futures as investors weighed sporadic signs of economic improvement against the accelerating spread of the coronavirus in the US, Brazil, and India, Bloomberg reported.
Auto shares and travel companies pushed up the Stoxx Europe 600 Index. The dollar dipped against all of its major peers after three days of gains.
China's foreign ministry on Monday said it will impose visa restrictions on US individuals with egregious conduct related to Hong Kong, after Washington announced visa restrictions on some Chinese officials over the city, Reuters reported.
Japanese shares sank on Monday, tracking the sharp decline on Wall Street on Friday after several US states imposed business restrictions to tackle a resurgence in new coronavirus cases.
The benchmark Nikkei tumbled 2.3% to 21,995.04 points, its lowest close since June 15, with cyclical stocks leading the decliners. South Korea's Kospi also tumbled 2% while Australian shares hit a two-week low. Hong Kong and Shanghai also reported losses.
Oil prices extended losses, falling for the second straight session on Monday, as a relentless rise in coronavirus cases led some countries to resume partial lockdowns that could hurt fuel demand.
Brent crude fell 81 cents, or 2%, to $40.21 a barrel, while US crude was at $37.74, down 75 cents.
Sun Pharmaceutical Industries' wholly-owned subsidiary has received approval from the ministry of health, labour and welfare, Japan, for its drug ILUMYA (tildrakizumab) used to treat plaque psoriasis in adults who have inadequate response to conventional therapies. Japan has approximately 430,000 people currently suffering from psoriasis.
In a first, the Aam Aadmi Party (AAP) led Delhi government on Monday announced setting up of a plasma bank for the treatment of patients diagnosed with covid-19. Delhi was one of the first states to allow plasma therapy to treat covid-19.
The facility will be set up at Institute of Liver and Biliary Sciences (ILBS) and will be made available for government and private hospitals after getting a doctor’s recommendation. Delhi has reported 83,077 cases, of which 27,847 are active.
The Centre’s ₹1-trillion plan to redevelop 400 stations across the country is likely to get a boost with Railways subsidiary RITES in final stages of acquiring 24% stake in the Indian Railway Stations Development Corporation (IRSDC), Business Standard reported.
According to sources, a shareholder agreement was signed on 21 May and the proposal will be taken up for approval of shareholders of both the companies in the annual general meeting expected in August.
IRSDC is the nodal agency for redeveloping railway stations in India.
Gold futures edged closer toward $1,800 an ounce -- a level last seen at the end of 2011 -- as demand for haven assets surged amid concerns over rising coronavirus infections, Bloomberg reported.
At 1145am, the Sensex was down 1.3% at 34702.93, and the Nifty was down 146.40 points or 1.4% at 10236.60.
Two killed as terrorists attack Pakistan Stock Exchange building in Karachi, agencies reported.
Airbus expects a 40% drop in production over the next two years due to the coronavirus crisis, Reuters reported citing chief executive Guillaume Faury.
"For the next two years - 2020/21 - we assume that production and deliveries will be 40% lower than originally planned," Faury told Die Welt newspaper.
Indian rupee rose, trading near day's high at 75.56. The unit opened flat at 75.63 per dollar against Friday's close of 75.64.
In a weak broader market, Nifty FMCG was the only index in the green with gains led by Britannia Industries, ITC.
Congress leader Rahul Gandhi on Monday urged people to join the "Speak Up Against Fuel Hike" campaign, ANI news agency reported.
He made the appeal through a video posted on the micro-blogging site Twitter.
Over the last 22 days, the price of petrol has gone up by ₹9.17 a litre while that of diesel has risen by ₹11.14 a litre.
Domestic gold prices hovered near record highs on Monday, tracking global trends. On the MCX, August gold futures were up 0.3% at ₹48,450 per 10 gram.
Last week, gold prices in India had hit a record high of ₹48,589 per 10 gram.
The Indian pharmaceutical industry has sought urgent intervention from the government following delays in import clearances for goods from China, highlighting "acute disruption in manufacturing of pharmaceutical products", CNBC TV18 reported on Monday.
Key starting raw materials, intermediates & active pharmaceutical ingredients (APIs), covid-19-related medical devices and diagnostics are among the imports stuck at the Jawaharlal Nehru Port and Delhi Airport.
Tata Steel, JSW Steel, Hindalco led losses on Nifty Metal.
A Wall Street Journal report said the phase 1 US-China trade deal could be at risk, weighing on equities. According to the report, Chinese officials have warned that "meddling" in Hong Kong and Taiwan could lead Beijing to back away from its commitment to purchase US farm goods.
Last week’s low of 10194 can now be a key support and as long as we are above it, there is no reason to worry. Traders are advised to trail stop losses higher at this level and a breach of this would result in a strong bout of profit booking in the market.
"If the rally continues, a move beyond 10,500 would certainly unfold the next leg towards 10700 - 10850 levels. Since, there is a cluster of resistance at every 200 points up move from hereon, traders are advised to take one step at a time and should ideally avoid carrying aggressive bets overnight," said Sameet Chavan, chief analyst -Technical and Derivatives, Angel Broking.
Bajaj Finance was among the top losers on Monday, down 3.4% at ₹2,804.50 apiece on the BSE.
S&P Global Ratings on Friday downgraded ratings of Axis Bank and four Indian non-bank financiers, citing worsening operating conditions as a result of the covid-19 pandemic. Bajaj Finance was downgraded to BB+.
"We expect the asset quality of Indian finance companies to deteriorate, credit costs to rise, and profitability to decline over the next 12 months. Given the large acceptance of moratorium by borrowers, funding and liquidity problems could worsen," S&P said.
BSE Smallcap down 1.5% at 12,434.29 points.
The BSE MidCap index was down 1.35 at 13,083.48, in line with losses in broader market.
The Indian rupee open at 75.63 a dollar on Monday compared with Friday's close of 75.64.
National e-Governance Services Ltd (NeSL) is in talks with state governments to allow digital e-stamping of bank loan agreements for its platform to digitise these documents, said a top executive at the information utility.
In an interview to Mint, NeSL executive S Ramann said Delhi and Rajasthan are the only two states that have permitted a complete digitisation of stamp duty payment and delivery. In other states, Ramann said, while the payment can be made digitally, a hardcopy of the certificate is still required.
“In India, the concept of e-stamping is a misnomer. You have a situation where you pay the fees online but have to collect the printouts from a particular stamp vendor or an agency.," said Ramann.
ITC, cigarettes and consumer goods maker, on Friday reported a 9% rise in its fiscal-fourth quarter profit, beating analysts’ estimates. Net profit rose to ₹3,797.08 crore in the three months ended 31 March from ₹3,481.90 crore a year earlier. That compares with ₹3,511.50 crore profit estimate in a Bloomberg survey of 14 analysts.
Revenue from operations, however, dropped 6.4% to ₹11,420.04 crore from a year earlier. Analysts had estimated net sales of ₹11,831.7 crore.
Tata Steel, India’s largest private steel producer, is expected to report a consolidated net loss of ₹90.76 crore for the January-March quarter, according to a poll of eight analysts by Bloomberg. The company’s consolidated revenue is estimated at ₹33,774.2 crore, according to 10 analysts polled by Bloomberg.
The steel industry faced a tough fourth quarter with domestic demand slowing, particularly from end-user sectors such as automotives, and prices failing to recover. The challenge has continued into the first quarter of FY21 amid the covid-19 outbreak as the industry faced difficulties in procurement of raw materials, decline in domestic demand and significantly high inventory with dealers. Primary steel producers such as Tata Steel also had to temporarily close operations at blast furnaces as steel demand crashed from the end of March through April.
Tata Steel had reported a subdued Q3FY20 performance as well, with poor realisations in both Indian and European operations.
Shares of Coal India fell on Monday following subdued Q4 earnings of the state-run miner.
The company reported 23% year-on-year decline in consolidated net profit to ₹4,637.95 crore and a 3.6% fall in revenue from operations to ₹27,568.23 crore.
Benchmark indices opened in the red on Monday.
At 0916am, the Sensex was down 240.35 points or 0.7% at 34930.92, and the Nifty was down 68.50 at 10314.50. About 614 shares advanced, 621 shares declined, and 72 shares were unchanged.
Foreign fund flows into India significantly improved during 1-26 June despite persistent concerns about steep valuations and weak fundamentals.
Foreign institutional investors’ (FIIs’) capital inflows into Indian equities total $2.87 billion so far in June, highest ever in the year. FIIs have been gradually allocating money to Indian shares with an inflow of $1.71 billion in May after a massive March-April selloff of $8.42. This inflow of foreign money also drove Indian markets over 8% higher in June, outperforming both MSCI Emerging Markets (EM) and MSCI World indices in the month.
India recorded over 19,000 coronavirus cases in the last 24 hours, with death toll in the country at 16,487.
Vice-President M Venkaiah Naidu on Sunday said “no storm can continue forever".
The number of containment zones in Delhi has risen to 417, with over 83,000 cases in the national capital. Maharashtra recorded over 5,493 cases in the past 24 hours, taking its total to 164,626.
Globally, more than 10.24 million people have been diagnosed with covid-19. While over 5.5 million have recovered, 504,366 have died so far.
Bharat Forge, Bharat Electronics, Petronet LNG, Central Bank of India, MRF, Reliance Communications, Rail Vikas Nigam, Welspun India, among others, will announce their Q4 earnings today.
State-run oil marketing companies on Monday hiked prices of petrol by 5 paise a litre to ₹80.43 and that of diesel was raised by 13 paise to ₹80.53.
Over the last 22 days, the price of petrol has gone up by ₹9.17 a litre while that of diesel has risen by ₹11.14 a litre.
In Indian markets, HDFC Bank, Axis Bank, NBFCs, ITC, Piramal Enterprises will be in focus today.
In commodity markets, gold held near its highest since early 2012 at $1,771 an ounce. Oil prices slipped on concerns that the pandemic would slow the reopening of some economies and thus hurt demand for fuel.
Brent crude futures fell 62 cents to $40.40 a barrel, while U.S. crude lost 60 cents to $37.89.
In Asian deals, Nifty futures on the Singapore Exchange traded 73.5 points, or 0.7% at 10,266.50, indicating a negative start for Indian equities on Monday.
On Friday, the BSE Sensex had ended at 35,171.27, up 329.17 points or 0.9%. The Nifty had closed at 10383, up 94.10 points or 0.9%.
Asian share markets got off to a shaky start on Monday as the spread of the coronavirus made investors question the optimism on the global economy, benefiting safe harbour bonds and the US dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2% and further away from a four-month top hit last week. Japan's Nikkei shed 1.5% and South Korean stocks 1.4%.
Wall Street had faltered on Friday as some US States reconsidered their reopening plans. The global death toll from covid-19 touched half a million people on Sunday, according to a Reuters tally.
Major equity indexes on the Wall Street had ended weak on Friday as several U.S. states imposed business restrictions in response to a surge in coronavirus cases.
The Dow Jones Industrial Average fell 730.05 points, or 2.8%, to 25,015.55, the S&P 500 lost 2.4% to end at 3,009.05 and the Nasdaq Composite shed 2.6% to close at 9,757.22.
For the week, the S&P 500 fell 2.9%, the Dow lost 3.3%, and the Nasdaq declined 1.9%.
A Wall Street Journal report said that the phase 1 US-China trade deal could be at risk and weighed on equities. According to the report, Chinese officials have warned that "meddling" in Hong Kong and Taiwan could lead Beijing to back away from its commitment to purchase US farm goods.