Sensex extends fall to eighth day; TCS, RIL drag5 min read . Updated: 18 Feb 2019, 03:47 PM IST
- Nifty could not hold on to the 10,650 level
- Auto, FMCG and IT stocks led the decline
Indian markets extended decline to the eighth day with Sensex falling over 300 points. IT, auto and FMCG stocks were under pressure today with market heavyweights RIL, ITC and TCS leading the decline. Muted earnings and caution ahead of general elections later this year has led Indian markets underperform global markets in recent days. TCS fell 3% while RIL and ITC declined about 2% each. The Sensex ended 310 points lower at 35,498 while Nifty fell 83 points to 10,640.
“The bears have tightened their grip in the market. There was no respite seen as the minor swings on the higher side were also being sold off," said Umesh Mehta, head of research, Samco Securities.
In contrast, global markets today rose to over 2-month highs today as hopes of progress in China-US trade talks and expectations of policy stimulus from central banks. MSCI's All-Country World Index rose 0.3% after Japan's Nikkei closed up 1.8% at its highest level of the year and MSCI's index of Asian equities rose almost 1%.
Trade negotiations between the United States and China will resume this week, with US President Donald Trump saying he may extend a March 1 deadline for a deal. Both sides reported progress at last week's talks in Beijing.
Tech Mahindra shares today rose closer to their 52-week high after the company said that its board will meet on February 21 to consider a share buyback proposal. “The Board of Directors of the company, at their meeting scheduled on Thursday, February 21, 2019 shall interalia consider a proposal to buyback the fully paid-up equity shares of the company," Tech Mahindra said. Read the full story
Shares of Pune-based mid-tier IT company fell 15% today amid higher volumes. Shares hit a 52-week low of ₹93.
In a setback for Vedanta, the Supreme Court today set aside a December order of the National Green Tribunal (NGT) that had allowed re-opening of Vedanta's Sterlite Industries Ltd's copper smelter plant at Tuticorin. A bench comprising Justices R.F. Nariman and Vineet Saran asked Vedanta and the Tamil Nadu government to approach the Madras high court for interim relief. Vedanta shares were 0.51% higher at ₹148 in early noon trade.
Anil Ambani group firms surge after agreement with lenders on pledged shares. Anil Ambani-controlled Reliance Communications Ltd, Reliance Power and Reliance Infrastructure Ltd, Reliance Capital Ltd and Reliance Naval and Engineering Ltd on Monday surged intraday after ADAG firms reached an agreement with more than 90% of lenders under which they won’t sell any shares pledged by promoters until September.
DHFL shares rise as much as 7% after Economic Times reported that Baring Pvt Equity, Bain Capital and Hero Fincorp are in talks to buy a stake in the housing finance company. Dewan's promoters are looking to sell a 10% stake through various ways, including an open offer, the report said.
Shares of Dr Reddy's Lab moved 3% higher at ₹2,623 after the drugmaker said on Saturday that it has received the inspection closure report for its Duvvada facility in Andhra Pradesh from the US health regulator.
Yes Bank, down about 5%, was the biggest loser among the Sensex stocks. RBI had warned Yes Bank for selectively revealing a “confidential" report by the regulator. The risk assessment report on Yes Bank prepared by the Reserve Bank of India identified several lapses and regulatory breaches in various areas of functioning, the company said in a stock exchange filing on Friday, citing a letter from the regulator. Yes Bank in a statement on Wednesday had that audit found “nil divergences" in an assessment of bad loans for the year to March 2018, which led its shares to jump the most since 2005 the next day.
The rupee was trading at 71.35 a dollar, down 0.18% from its previous close of 71.23. The currency opened at 71.30 a dollar, touching a high 71.30 and a low 71.40.
Anil Ambani-led Reliance Group has reached a 'standstill agreement' with more than 90% of its lenders under which they will not sell any of the shares pledged by promoters till September. Under the pact, the group will pay the principal and interest amounts to the lenders as per the scheduled due dates, while it has also appointed investment bankers for part placement of the group's direct 30% stake in Reliance Power to institutional investors, officials at the lenders and Reliance Group said. (PTI)
Oil prices rose to their highest levels since November last year, lifted by OPEC-led supply cuts and U.S. sanctions on Iran and Venezuela. Brent crude futures hit a high of $66.78 per barrel before easing to $66.65 per barrel, up 0.6% from their last close.
Jet Airways is likely to receive fund infusion worth over ₹3,000 crore post debt-rejig and investments by Etihad Airways, Press Trust of India reported, citing sources. Abu Dhabi-based Etihad, which currently owns 24% in the full service carrier, is a strategic partner and is expected to pump in around ₹1,400 crore, the report added, citing sources. On 14 February, Jet Airways' board approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline.
Drug major Dr Reddy's Laboratories on Saturday said it has received the inspection closure report for its Duvvada facility in Andhra Pradesh from the US health regulator. "We have received a written communication from the United States Food and Drug Administration (USFDA) about the issuance of establishment inspection report (EIR) for FTO VII, our formulations manufacturing facility at Duvvada, Visakhapatnam," Dr Reddy's said in a filing to the BSE. This site was included in the warning letter received from USFDA in November 2015. Subsequently, the site was audited by the regulator in March 2017 for which we received EIR in November 2017, wherein the site's status remained unchanged, it added.
The Reserve Bank of India (RBI) has warned Yes Bank of regulatory action for disclosure of nil divergence report in violation of the confidentiality clause, the private sector lender said Friday. Yes Bank, in a press release earlier this week, had said RBI has not found any divergence in the asset classification and provisioning done by the lender during 2017-18.
Asian share markets bounced broadly on Monday as investors dared to hope for both progress at Sino-U.S. trade talks in Washington this week and more policy stimulus from major central banks. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent, recovering from a sharp fall last Friday. Japan's Nikkei climbed 1.8 percent to its highest level of the year so far, while Australia's main index rose 0.7 percent. Shanghai blue chips bounced 1.6 percent.