Markets snap 5-day winning streak, close 1% lower; RIL, Infosys top drags10 min read . Updated: 08 Jul 2020, 03:40 PM IST Devansh Sharma
- Indian stocks ended about 1% lower, in a choppy trade, on Wednesday snapping a five-session rally
- Sensex dropped about 500 points from the day’s high and closed at 36,329.01, down 0.94% from its previous close
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Indian stocks ended about 1% lower, in a choppy trade, on Wednesday after a five-session rally.
Sensex dropped about 500 points from the day’s high and closed at 36,329.01, down 0.94% from its previous close. Nifty settled 93.90 points or 0.87% lower at 10,705.75.
Bajaj Finance, closing nearly 5% lower, was the top drag on Sensex, followed by Asian Paints, Bajaj Finserv, HCL Tech and Maruti Suzuki. IndusInd Bank, SBI, HUL, Tata Steel and ITC were among the gainers.
Of 30 Sensex shares, 22 closed in the red.
GMR Group concludes deal with Groupe ADP for 49% stake sale in airport arm
Infrastructure major GMR Group has concluded a deal to complete 49% stake sale in its airport arm to Paris-based Groupe ADP.
As per the revised Share Purchase Agreement, Groupe ADP's second tranche of the investment for picking up 24.01% stake in GMR Airports Limited (GAL) has been structured in two parts.
Infosys, RIL, TCS drag Sensex by over 250 points
SC slams Fada for exceeding limit to sell BS-IV vehicles
The Supreme Court on Wednesday slammed the Federation of Automobile Dealers’ Association (Fada) for exceeding the limit to sell Bharat Stage-IV (BS-IV) compliant vehicles that was fixed by the court. (Full report)
Hong Kong stocks finish with gains
Hong Kong stocks closed higher Wednesday after a sharp sell-off the day before and putting them back on their recent upward trajectory despite a surge in virus infections around the world.
The Hang Seng Index rose 0.59%, or 153.52 points, to 26,129.18.
The benchmark Shanghai Composite Index rallied 1.74%, or 58.10 points, to 3,403.44 while the Shenzhen Composite Index on China's second exchange climbed 1.88%, or 40.68 points, to 2,198.62. (AFP)
Rupee slips 9 paise to close at 75.02 against US dollar.
IndusInd Bank jumps 10% on funding report
Shares of IndusInd Bank jumped as much as 9.81% intraday on reports US-based hedge fund Route One Investment Company is initiating talks to increase its stake in the bank. According to Moneycontrol, Route One Investment Company has initiated talks to increase its stake in IndusInd Bank, which has been looking to raise capital. Route One Investment currently holds 5.41% stake in IndusInd Bank through two entities. The plan is to hike its stake to around 9.9% via a preferential allotment of shares, the news portal reported.is initiating talks to increase its stake in the bank.
Nifty PSU Bank, Nifty Metal top sectoral gainers on the NSE
Nifty PSU Bank up 5%
NBCC India bags orders worth ₹432 cr in June
State-owned NBCC (India) on Wednesday said it bagged total business orders worth ₹431.63 crore last month.
It received an order worth ₹284.63 crore from BHEL for construction works of natural draught cooling towers for Package -1 and Package – 2 of 5X800 MW Yadadri supercritical thermal power project, according to a regulatory filing by the company.
Corporate earnings could pause recovery rally in global equities
Given the way global equities have rallied despite the covid-19 pandemic, analysts fear the market is probably more optimistic of an economic revival, than it should be. This could be paving way for a huge disappointment. (Full report)
Indian shares struggled to find firm ground on Wednesday after a five-session rally as coronavirus infections continued to surge, with losses in IT stocks offsetting gains in metals and private-sector lender IndusInd Bank Ltd. At 12:40 pm, Sensex was at 36,646.41, down 28.11 or 0.08%, while Nifty was up 2.70 points or 0.03% at 10,802.35.
IndusInd Bank, surging over 7%, was the top Sensex gainer followed by SBI, Tata Steel, ITC and HDFC Bank. Asian Paints, HCL Tech and Infosys were among the laggards.
Of 30 Sensex shares, 14 were in the red.
Yes Bank shares gain 5% as board approves FPO plan
Shares of Yes Bank gained as much as 5.24% on Wednesday as the lender said it would raise funds through a follow-on public offering (FPO). (Full report)
Mr. Anuj Gupta DVP Commodities and Currencies Research, Angel Broking says...
“Yesterday bullion were traded on a higher side. Gold increased by 1.19% to 48800 levels and silver increased by 0.83% to 50202 levels. Safe heaven demand is rising due to increase corona virus cases in the world.Economic slow down and global growth forecast lower by IMF also supportive for the Bullions. We expect gold and silver may traded on a positive note today. Silver may take positive cues from base metals also as base metal segment also increased sharply in last couple of days. For intraday traders gold can buy at 48400 to 48500 levels with the stop loss of 48100 levels and for the target of 49200 - 49300 levels. For silver traders can go for buy at 49900 to 50000, with the stop loss of 49450, and for the target of 50800 to 51000 levels.
In international market gold may test $1820 levels and silver may test $ 18.80 levels soon."
Top Sensex drags
SAIL, Canara Bank top gainers on BSE MidCap index
Motilal Oswal neutral on Bajaj Finance
Motilal Oswal has maintained 'neutral' ratings on Bajaj Finance with a target price of ₹3,000 and 11% downside. :Improvement in the moratorium rate from 27% in April to 16% in June is a key positive - though we await details on bounce rate. In our recent note, we have upgraded EPS estimates by ~15% for FY21/FY22E driven by lower credit costs and better growth expectation. We maintain a Neutral rating with a revised TP of INR3,000 (4.2x FY22E BV)," the brokerage said.
Yes Bank files FPO offer doc to raise around ₹10,000 crore
Yes Bank Ltd has filed the offer document for its proposed follow-on public offering (FPO) with the registrar of companies, and is expected to soon launch the public offering, according to a Mint report.
IndusInd Bank surges 9%
Hedge Fund Route One Investment Company, which currently holds 5.41% stake in IndusInd Bank through two entities, plans to hike it to around 9.9% via a preferential allotment of shares, helping the bank strengthen its balance sheet, says a Moneycontrol report.
LTI launches modern software engineering platform
Larsen & Toubro Infotech has launched LTI Canvas, a modern software engineering platform that addresses critical need of enabling work from anywhere, it said in a regulatory filing.
LTI Canvas is a bundle of Microsoft technologies and LTI solutions to help IT professionals across industries collaborate easily. It is based on microservices architecture and leverages Microsoft platforms like Azure and Microsoft 365 including Teams, among others along with LTI’s Ways of Working solution stack.
Rupee slips 5 paise to 74.98 against US dollar in early trade
The rupee depreciated 5 paise to 74.98 against the US dollar in opening trade on Wednesday tracking weak domestic equities and strengthening American currency.
The rupee opened on a positive note at 74.88 at the interbank forex market, but soon lost ground and touched 74.98 against US dollar, down 5 paise over its last close.
It had settled at 74.93 against the US dollar on Tuesday.
Risky bond sales jump to 15-month high in India on stimulus
Issuance of local-currency corporate notes graded A+ and lower rose to a 15-month high of 51.7 billion rupees ($690.5 million) in June. Such offerings had plunged in April and May as the coronavirus pandemic and the world’s largest lockdown to contain it battered investor demand for risky assets in India. (Full report)
Steel Strips Wheels Ltd up 4%
The company has received orders for more than 3100 CV alloy wheels from US & EU market, amounting to a value of around $14 billion, it said in a regulatory filing.
Zuari Agro Chemicals up 1.6%
The company has shut down its NPK-A plant temporarily, it said in a regulatory filing.
Coal India down 0.6%
State-owned Coal India (CIL) said it managed to clock an average daily production of 44% and average attendance of nearly 36% during the three-day strike called by worker unions last week.
Adani Ports down 1.5%
The board of directors of the company has approved rising up to $1.25 billion via dollar denominated foreign currency bonds.
Lupin voluntarily recalls its Metformin Hydrochloride Extended-Release Tablets in US
Lupin Pharmaceuticals Inc. is voluntarily recalling all batches of Metformin Hydrochloride Extended-Release Tablets USP, 500mg and 1000mg to the consumer level, it said in a regulatory filing. As part of the ongoing assessment and continuation of the dialog with the FDA, additional analysis revealed that certain tested batches were above the Acceptable Daily Intake Limit for the impurity N-Nitrosodimethylamine (NDMA). Out of an abundance of caution, the company is recalling all batches of Metformin Hydrochloride Extended-Release Tablets USP, 500mg and 1000mg in the US. To date, Lupin Pharmaceuticals Inc. has not received any reports of adverse events related to this recall.
SBI shares up 2.4%
SBI has reduces MCLR by 5-10 bps for shorter tenors. MCLR for up to 3-month tenor has been reduced to 6.65%.
Titan Q1FY21 recovery comforting but stock’s valuations already glitter
Titan’s jewellery revenue in May and June were at slightly below 20% and around 70% compared to the corresponding months last year. Analysts are fairly enthused by the June performance and reckon it is better than expected. The jewellery business is Titan’s mainstay and accounted for 83% of its revenues in financial year 2020. (Full report)
Most secotral indices on the NSE are in the green
Shriram Transport Finance up 4.5%
Commercial vehicles financier Shriram Transport Finance Co Ltd (STFC) on Tuesday said that it will launch its rights issue on 16 July to raise ₹1,500 crore. The issue will close on 30 July and the price has been fixed at ₹570 per share.
L&T Finance Holdings up 1.3%
L&T Infrastructure Finance Company Ltd (LTIF), a wholly owned subsidiary of L&T Finance Holdings Ltd, has received the first tranche of $50 million of the total $100 million of an external commercial borrowing from the Beijing-headquartered Asian Infrastructure Investment Bank (AIIB. While AIIB generally lends to large infrastructure projects in India, this marks its first loan to a non-banking financial company.
Maruti Suzuki drops 0.6%
The company’s production in June 2020 declined to 50,742 units as against 111,917 units in June 2019.
Cipla up 1.4%
India's Sovereign Pharma said it has dispatched the first batch of generic remdesivir for drugmaker Cipla Ltd, as the country recorded more than 22,000 new coronavirus cases on Tuesday. At current capacity, Sovereign can supply 50,000 to 95,000 vials per month of the injectable, the company said in an emailed statement on Tuesday.
Indian benchmark share indices opened marginally higher on Wednesday tracking mixed cues from global peers. Sensex opened at 36,738.38, up 64 points, while Nifty opened 19 points higher at 10,818.65.
Indian stocks traded marginally higher in the pre-opening session on Wednesday. At 9:04 am, Sensex rose 82 points or 0.2% to 36,765.79, while Nifty advanced 27 points or 0.3% to 10, 826.5.
Stocks to Watch
RIL, Yes Bank, Cipla, Titan, L&T Finance Holdings, Adani Ports are among the top stocks that may be in news on Wednesday.
Markets at close on Tuesday
Indian benchmark share indices on Tuesday closed firm for the fifth session, in a volatile trade, amid hopes of an economic recovery despite a rise in cases of coronavirus.
Sensex settled at 36,674.52, up 0.5% or 187.24 points, while Nifty advanced 36 points or 0.3% to end at 10,799.65.
Bajaj Finance, surging nearly 8%, was the top Sensex gainer followed by IndusInd Bank, Bajaj Finserv, ICICI Bank and Axis Bank. Power Grid, ITC, NTPC and Tata Steel were among the laggards.
Of 30 Sensex shares 15 closed in the red.
Asian shares mixed
Shares were mixed in Asia in the early deals on Wednesday as uncertainty over the pandemic sapped the buying enthusiasm that has been driving prices higher.
Japan's benchmark Nikkei 225 dropped 0.3% in morning trading to 22,545.36. Australia's S&P/ASX 200 dipped 0.5% to 5,982.10. South Korea's Kospi shed 0.3% to 2,157.70 Hong Kong's Hang Seng reversed early losses, gaining 0.3% to 26,059.92, while the Shanghai Composite also bounced higher, adding 0.3% to 3,355.53.
Singapore's SGX Nifty was up 0.4%, indicating a positive opening for Indian benchmark equity indices.
US Stocks end lower
US stocks eased on Tuesday as investors took profits a day after the S&P 500 logged its longest streak of gains this year and as new US coronavirus cases rose further.
The Dow Jones Industrial Average fell 396.5 points, or 1.51%, to 25,890.53, the S&P 500 lost 34.35 points, or 1.08%, to 3,145.37 and the Nasdaq Composite dropped 89.76 points, or 0.86%, to 10,343.89.