Sensex ends flat, recovery led by IT stocks3 min read . Updated: 30 Apr 2019, 04:48 PM IST Staff Writer
- Yes Bank shares plunged 30% after the lender posted a loss in March quarter
- Infosys, HCL Tech and TCS led gains in IT stocks
Indian markets recovered to end flat today, led by gains in IT stocks and select financials like HDFC and Kotak Mahindra Bank. The Sensex today ended 36 points lower at 39,031, after falling to 38,753 at day's low. The Nifty settled at 11,748, down 0.06%. Yes Bank shares fell 30% after the lender posted a loss of ₹1,507 crore for the quarter ended March 31. Provisions and contingencies surged to ₹3,662 crore, from ₹400 crore a year ago. Among other financials, Indiabulls Housing Finance, Bank of Baroda and IndusInd Bank declined 5-6%.
Auto stocks also came under strong selling pressure. Hero MotoCorp fell 3.5% while M&M declined 2%. Maruti Suzuki shares (down 2.5%) fell for the seventh straight day. The carmaker had last week reported a drop in Q4 net profit and gave a weak sales forecast for this fiscal year.
Among the IT companies, HCL Tech rose 4% while Infosys and TCS gained 2% and 1% respectively. Kotak Mahindra Bank rose 0.50% after the lender posted a 25% jump in net profit for the March quarter.
Jayant Manglik, president of Religare Broking, expects Indian markets to remain volatile in the near term given the earnings outcome and election progress.
"On the global front, movement in crude oil prices and currency would be closely monitored by the market participants. Further, the auto sales numbers for the month of April and outcome of FOMC meet (on May 1) will remain on market radar," he added.
The US central bank’s Federal Open Market Committee (FOMC) will announce its policy decision on Wednesday. The US Federal Reserve is done raising interest rates until at least the end of next year, predicted economists polled by Reuters.
"Nifty continues to consolidate in the range of 11,550 and 11,860. We expect this consolidation to continue for few more trading sessions before a breakout is witnessed on the higher side. Any meaningful dip remains an opportunity to add to long positions. A breakout above 11860 can push the index towards 12,300-12,500," said Sahaj Agrawal, head of derivatives at Kotak Securities.
Kotak Mahindra Bank Q4 net jumps 25% on strong loan growth
Private sector lender Kotak Mahindra Bank reported a 25% growth in net profit for the quarter ended March 31, boosted by a strong loan growth. Kotak Mahindra Bank reported a 25% jump in net profit to ₹1,408 crore in the March quarter, as compared to ₹1,124 crore in the same quarter of the previous year. Overall its loans grew 21% as of end-March. Read more here.
Shares of Piramal Enterprises Ltd fall as much as 4.32% to ₹2,300, lowest since Feb. 26
Shares of Garden Reach Shipbuilders & Engineers Ltd surge as much as 15.9% to a record high of ₹112.35
Yes Bank shares plunge 30% after Q4 shock
Shares of Yes Bank Ltd on Tuesday slumped nearly 30% as many brokerage firms downgraded the stock and cut target price after the lender reported surprise quarterly loss and guided to lower growth in the ongoing financial year. Yes Bank shares opened at ₹213.70 on BSE and dropped over 29.76% in intraday on NSE. At 1.18 pm, the scrip was trading at ₹170.20 on NSE, down 28.25% from its previous close. So far this year, it is down 2.15%. Read more here.
Maruti Suzuki slides for 7th day
Shares of Maruti Suzuki were down about 2% today, extending their decline to the seventh day. Maruti Suzuki had reported quarterly earnings last week and its net profit for the fourth quarter beat market expectations but fell 5% to ₹1,796 crore from a year earlier. The carmaker also forecast a weak rate of growth for the current fiscal year, blaming uncertain fuel prices and the onset of stricter emission norms.
Yes Bank shares plunge 30% after Q4 shock
Shares of Yes Bank Ltd on Tuesday slumped nearly 30% as many brokerage firms downgraded the stock and cut target price after the lender reported surprise quarterly loss and guided to lower growth in the ongoing financial year. Yes Bank shares opened at ₹213.70 on BSE and dropped over 29.76% in intraday on NSE.
Asian shares fall as China manufacturing data disappoints
Shares in Asia fell on Tuesday as readings on China's manufacturing activity failed to meet expectations, underscoring weakness in the world's second-largest economy despite Beijing's attempts to spur growth.
Both official and private business surveys pointed to slower Chinese factory growth this month, dashing hopes for a steady reading or even a faster expansion. Data also showed a slower expansion in its services sector, adding to economic uncertainty.
The dollar-denominated MSCI index of Chinese shares dropped 0.8 percent. But Chinese blue chips in Shanghai and Shenzhen kept losses in check, losing less than 0.1 percent as investors maintained hopes for further measures to prop up the economy.
Fed rates decision key for markets, Yes Bank in focus
Dragged by global markets Indian equities may be subdued on Tuesday. Share markets will have only three trading days this week with Monday and Wednesday being holidays due to general elections in Mumbai and Maharashtra Day, respectively.
Shares in Asia fell on Tuesday despite another record high close for the S&P 500, as investors await a US Federal Reserve policy decision for clues of whether it will continue to take a “patient" approach to interest rate policy. Read more here.
Oil teeters as investors ponder OPEC's response to US and Iran
A week after the U.S. flagged tighter sanctions on Iranian crude and spurred oil higher, prices are back down to where they were before the announcement.
Investors are trying to assess how OPEC and its allies will respond when U.S. waivers that allowed buyers to continue importing Iranian oil expire on May 2. While the White House says other producers have pledged to make up for any shortfall, top exporter Saudi Arabia’s been less emphatic. International Monetary Fund data show the kingdom needs crude at about $85 a barrel -- well above current levels -- to balance its budget this year. (Bloomberg)