Sensex falls for third day in a row; SBI, HDFC Bank weigh1 min read . Updated: 23 Apr 2019, 03:51 PM IST
- Banking stocks led the decline, Nifty Bank index fell 0.70%
- Oil prices continued to rise after US ended all Iran sanction exemptions
Indian markets ended lower today amid volatile trade, extending losses to the third session. The Sensex fell 80 points to 38,564 while Nifty settled lower at 11,576, down 0.16%. Rising oil prices, which have inched closer to $75 a barrel, have hurt the sentiment over the past few sessions. Oil prices extended gains today after US announced that all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran. Banking stocks led the decline, with Nifty Bank index falling 0.70%. Among banking stocks, HDFC Bank fell 1% while SBI declined 1.4%. Other top losers included Yes Bank and IndusInd Bank, both falling over 2% each.
Here are 10 updates from today’s stock markets:
1) "Crude prices have shot up. This, coupled with lack of momentum across the board, depreciation in rupee and election uncertainty are weighing on the market," said Sahaj Agrawal, VP derivatives with Kotak Securities. Voting in the third and largest phase of the staggered Lok Sabha elections was held today.
2) The volatility index India VIX, which is also known as fear gauge, rose further to 24.60, suggesting some nervousness among market participants.
3) On the technical side, Nifty has support of 11549, says Sameet Chavan, chief analyst for technical and derivatives at Angel Broking. “Traders are advised to keep a close eye on this key level. A violation of this point on a sustainable basis could trigger further correction to lower levels of 11,475–11,400 or below," he said.
4) “The recent surge in crude oil prices has spooked our markets. The prevailing earnings season and upcoming derivatives expiry would further fuel the volatility," said Jayant Manglik, president of retail distribution at Religare Broking.
5) Shares of drugmaker Lupin rose as much as 4.5% after Morgan Stanley upgraded shares of the drugmaker to ‘overweight’. Sun Pharma shares also rose 3%.
6) Oil prices continued to rise after the US on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, including India, to continue importing limited volumes.
7) India is the world's third-biggest oil importer and elevated crude prices could widen the country’s current-account deficit and stoke inflationary pressures. The yields of 10-year benchmark bonds hardened while rupee also fell to 69.84 against the US dollar.
8) Elsewhere, shares of Tejas Networks, which reported earnings on Monday, surged as much as 10% today before giving up all the gains.
9) Shares of oil marketers continued to take a hit from higher crude prices. Indian Oil Corp and Bharat Petroleum Corp shares ended lower today.
10) Jet Airways Ltd, which suspended all operations last week, rebounded 10% today after falling sharply over past few days.
Shares of Lupin Ltd rise as much as 4.5% to ₹868.95 after Morgan Stanley upgraded the drugmaker to 'overweight' from 'equal-weight' rating, raising price target to ₹1,094 from ₹783. Earnings concentration risk has normalised and new product catalysts are in sight to revive earnings, says Morgan Stanley.
Biocon has informed that its board will consider a proposal for dividend
and issue of Bonus shares at the scheduled meeting on April 25, 2019.
Blackstone Group Lp, one of the world’s largest private equity firms, has agreed to buy a majority stake in speciality packaging company Essel Propack Ltd for about $310 million. The New York-based PE firm has signed a definitive agreement with Essel Propack’s promoter, Ashok Goel, to buy a 51% stake at ₹134 a share. The Blackstone-Propack deal will trigger a mandatory open offer, according to takeover norms of the Securities and Exchange Board of India (Sebi), requiring Blackstone to purchase an additional 26% stake in Essel Propack. The PE firm has offered to buy the 26% stake at ₹139.19 a share.
On Monday, Essel Propack shares rose 0.91% to ₹132.65 apiece on the BSE. The announcement was made after market hours.
Oil extended gains after leaping to a six-month high Monday as the Trump administration said it will no longer give any country a pass on sanctions barring purchases of Iranian supply. Futures in London added as much as 0.5% today after US Secretary of State Mike Pompeo said any nation that continues to buy Iranian oil will face American sanctions. In response, Iran threatened to shut the Strait of Hormuz, a key maritime chokepoint for Persian Gulf producers, and said it’s engaged in “intensive" talks with partners to blunt the impact of Trump’s escalation.