Sensex snaps 9-day losing streak; SBI , RIL lead gains3 min read . Updated: 14 May 2019, 04:33 PM IST
- PNB, SBI and Bank of Baroda led gains in PSU banking stocks
- Sun Pharma led the gains in pharma stocks
Indian markets settled higher today, snapping a nine-day losing streak. The Sensex ended 227 points higher at 37,318 while Nifty settled at 11,222, up 0.66%. Banking, pharma and energy stocks led the gains. Among the Sensex stocks, Sun Pharma surged 6%, Bharti Airtel 5.4%, Vedanta 4.4%, and IndusInd Bank 3%. Among heavyweights, RIL gained 2.3%. Banking heavyweights SBI and ICICI Bank gained 3% and 1.5% respectively.
Apart from SBI, many other PSU banks saw strong gains. Union Bank, PNB, Allahabad Bank and Bank of Baroda rose between 4% and 5%.
The broader market indices - BSE midcap and smallcap - too ended higher by 0.6% and 0.3% respectively.
"We have a cautious outlook on the markets in the near-term given the recent escalation in US-China trade war. On the domestic front too, mixed corporate earnings as well as speculations regarding central election outcome would continue to induce volatility in the markets," said Jayant Manglik, president of retail distribution of Religare Broking.
"Further, oil price and currency movement will also keep investors on guard," he added.
Many Indian pharmaceutical companies named in an anti-trust lawsuit filed by 44 US states accusing them of price manipulation traded higher on Tuesday, recovering from the Monday lows.
On Monday, shares of all many companies fell sharply after a US multi-state lawsuit accused many Indian drug makers of colluding over pricing. Read more here.
The collapse of Tata Steel's proposed joint venture with German conglomerate Thyssenkrupp is "marginally credit negative" for the Indian steel major, a global rating agency has said.
The steel major's Indian operation will largely be able to offset the impact of the collapse, it said.
"Tata Steel Ltd and Thyssenkrupp AG's decision to cease efforts on their proposed Europe joint venture is marginally credit negative for Tata Steel," S&P Rating said in a bulletin in the wake of the development. Read more here.
Muthoot Finance reported a mixed Q4FY19, says Edelweiss in a report. "Better NIM lifted revenue, but higher opex restricted improvement in profitability," the brokerage said. "Muthoot’s FY19 performance shows liquidity challenges did not disrupt business metrics. The company is making investments to open branches and beef up marketing and advertisement, which should support over 15% growth". Edelweiss has revised target price on Muthoot Finance higher to ₹652, from ₹565, earlier, while maintaining "buy". Muthoot Finance shares were trading 5% higher at ₹575.
Jet Airways (India) Ltd's Chief Financial Officer and deputy Chief Executive Officer Amit Agarwal has resigned from his positions at the airline, the company said in a statement on Tuesday. The airline said Agarwal resigned due to personal reasons and his resignation was effective 13 May. Jet Airways shares were down 8% in early trade.
Benchmark index Sensex slipped 4% in May so far while US-China trade talks continue and India awaits for results of general elections on 23 May. Corporate earnings of March quarter will impact investor sentiment, says Gautam Duggad, head of research, institutional equities, Motilal Oswal Securities Ltd in an interview to Mint's Nasrin Sultana.
Government bond prices rose today for second session as easing core inflation and weakening factory output data stoked rate cut by Reserve Bank of India. At 9.10 am, the 10-year bond yield was at 7.366% compared with Monday's close of 7.391%.Bond yields and prices move in opposite directions.
Other Asian markets extended losses today following sharp falls on Wall Street overnight, the yen strengthened and US Treasury yields ticked lower as the trade war between China and the United States escalated. In early trade on Tuesday, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4%. China on Monday announced it would impose higher tariffs on $60 billion of U.S. goods following Washington's decision last week to hike its own levies on $200 billion in Chinese imports.
Oil prices moved higher today, though gains were checked amid an escalation in the trade war between the United States and China. Brent crude futures were at $70.30 a barrel, up 7 cents, or 0.1%, from their last close. Brent ended the previous session down 0.6%. Headlines from the Middle East grabbed attention early in the session after Saudi Arabia said two of its oil tankers were among those attacked off the coast of the United Arab Emirates, describing it as an attempt to undermine security of supply amid United States-Iran tensions.