Sensex snaps record run, banks lead decline; Nifty holds 11,7503 min read . Updated: 18 Apr 2019, 03:46 PM IST
- Sensex and Nifty hit new intra-day highs but could not hold on to gains
- Apart from banking, FMCG and metal stocks also weighed
Indian stock markets today snapped a four-day winning streak after they slipped from record highs to end lower. Banking stocks led the decline as sentiment soured a day after debt-ridden Jet Airways Ltd was forced to halt all operations after running out of funds. Apart from banking, FMCG and metal stocks also weighed. The Sensex ended 135 points lower at 39,140. Earlier in the session, the index hit a new high of 39,487, before succumbing to the selling pressure. Broader index Nifty settled 0.30% lower at 11,752. Nifty too hit new intra-day high of 11,856 earlier in the session.
Deepak Jasani of HDFC Securities said Jet Airways troubles have pressured its lenders, including State Bank of India and Punjab National Bank, resulting in a domino effect on the broader sector.
The Nifty PSU Bank index fell 2%, with SBI dropping 2%. Bank of Baroda and PNB fell between 3% and 4%. Among private lenders Yes Bank fell 4% while IndusInd Bank dropped 3%.
Jet Airways' shares nosedived 32% percent after it halted all flight operations indefinitely on Wednesday as its lenders rejected its plea for emergency funds.
Jet's rival SpiceJet climbed as much as 15% before ending 3% higher.
Reliance Industries, which is due to report its results later in the day, rose 3% after Reuters, citing sources, reported that Saudi Aramco, the world's biggest oil producer, is in talks to buy a stake of at least 20% in Reliance's refining and petrochemicals businesses.
In broader Asia, shares dipped in subdued trade after losses on Wall Street and some profit-taking ahead of a long Easter weekend. (With Agency Inputs)
Shares of rating agency Crisil were down 6% at ₹1,509 in afternoon trade. Crisil on Wednesday reported a fall of 6.8% in its consolidated net profit to ₹76.6 crore in its first quarter ended March. The company follows January-December fiscal year.
Its consolidated net profit was ₹82.2 crore in the January-March quarter of 2018. (Read: A sober March quarter for Crisil as research business continues to drag)
RBL Bank announces Q4 results: advances grow 35%, operating profit increases 46% and net profit increases 39%. Board recommends dividend of ₹2.70 per equity share of ₹10 each. Board also approved raising of funds aggregating up to ₹3,500 crore, including through issuance of equity shares/depository receipts and other securities including through QIP / GDRs/ ADRs/ FCCBs, or such methods, subject to such regulatory/statutory approvals as may be required. Shares trade flat at ₹680.
Ashoka Buildcon on Wednesday said its joint venture has won a ₹443 crore contract from Rail Vikas Nigam Ltd (RVNL) for works related to doubling of a railway track in Punjab. The project is scheduled to be commissioned in three years time. Shares of Ashoka Buildcon rose as much 3% today, before paring some gains.
SpiceJet today said it will induct six more Boeing 737-800 NG aircraft on dry lease. These six aircraft are in addition to the 16 Boeing 737 planes and five 90-seater Bombardier Q400 planes that the airline will soon induct. (Read more)
Automaker Mahindra and Mahindra Ltd signed a deal with Ford Motor Co's Indian unit to jointly develop midsize sports utility vehicles in India, the company said on Thursday. Ford and affiliate companies will invest ₹680 crore for the development of the vehicles over a period of 10 years, Mahindra said in a statement. M&M shares were flat at ₹685 in noon trade.
SpiceJet is well placed to cash in on Jet Airways troubles, says SBICap in a report dated April 15. "It is the only private airline to induct Boeing narrow-body aircraft and supporting infrastructure. If Jet’s troubles linger, SpiceJet may well lease more planes to lift market share," added SBICap, which has a target price of ₹175 on SpiceJet shares. SpiceJet shares hit a fresh 52-week high of ₹152 today before paring some gains.
Shares of Jet Airways India Ltd on Thursday slumped over 34%, its biggest fall since 2005 listing, after the cash-strapped carrier that once ranked India’s second-largest airline by passengers carried suspended operations temporary basis after it failed to secure emergency funds.
Shares of Bandhan Bank rose 3% after Competition Commission of India approved the merger with GRUH Finance Limited.
Oil prices edged down on Thursday despite a surprise decline in U.S. inventories, with international benchmark Brent, retreating from a five-month high touched in the previous session. Brent crude futures were at $71.51 a barrel. (Reuters)
Asian shares held on to near 9-month highs, with MSCI's broadest index of Asia-Pacific shares outside Japan inching up 0.08%. Wall Street shares ended in the red on Wednesday, with the S&P 500 falling 0.2% as a drop in healthcare equities outweighed upbeat economic data from the United States and China.
The US trade deficit fell to an eight-month low in February as imports from China plunged, data on Wednesday showed.
Separate figures from China on Wednesday showed the world's second-largest economy grew at a steady 6.4% pace in the first quarter, defying forecasts for a slowdown. (Reuters)