Markets Live: Equity indices edge down, Sensex skids 160 points to 37291

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, …

12:25 pm

Oil prices drop on concern over US economy

Brent crude was up 64 cents, or about 1.1 per cent, at $59.28 a barrel at 0255 GMT. – Bloomberg

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of the US economy.

Brent crude was down 31 cents, or 0.5 per cent, at $60.18 a barrel by 0638 GMT, while US crude was down 18 cents, or 0.3 per cent, at $55.60 a barrel. Oil prices rose around 1.5 per cent in the previous session. Click here to read in full the global oil markets report.

12:15 pm

Indiabulls Housing Finance shares drop 8% on Nifty replacement

Shares of Indiabulls Housing Finance on Thursday dropped 8 per cent as Nestle India will replace the company in the benchmark Nifty 50 index from September 27.

The scrip tanked 7.97 per cent to Rs 420.80 on the NSE. Shares of Nestle India, however, rose 2.97 per cent to Rs 12,890.

Nestle India will replace Indiabulls Housing Finance in the benchmark Nifty 50 index from September 27, the National Stock Exchange (NSE) said on Wednesday.

“The replacement will also be applicable to Nifty 50 Equal Weight Index,” the bourse said in a release. – PTI

12:05 pm

Equities struggle on recession, Brexit fears

MSCI Asia-Pacific index up 1 per cent. File Photo – Reuters

Global bond yields flirted with record lows while stocks inched down on Thursday, as global recession worries from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.15 per cent, Singapore shares hit eight-month lows, while Japan’s Nikkei shed 0.07 per cent.

On Wall Street, the S&P 500 gained 0.65 per cent on Wednesday, due in part to gains in the energy sector following a rebound in oil prices. But US stock futures lost 0.2 per cent in Asia. Click here to read in full the Asian markets report.

11:55 am

USFDA nod bodes well for Unichem Labs

Unichem Laboratories has received ANDA approval from the USFDA for Solifenacin Succinate Tablets, 5-mg and 10-mg to market (a generic version of Vesicare tablets of Astellas Pharma US, Inc). The tablets are indicated for the treatment of overactive bladder with symptoms of urinary incontinence, urgency, and urinary frequency. Unichem will commercialise the product from its Goa plant. Shareholders of the company will closely monitor the execution.

11:45 am

Shell makes Series-B funding in PRESPL

Global energy major Shell, along with SBI Ventures Neev Fund has jointly made a Series-B funding of Rs 55 crore in Mumbai based bio-energy company- PRESPL.

This is the first investment of the Anglo-Dutch behemoth in Indian a bio-energy firm, and has been directly cleared by the Shell management in the Netherlands. Shell clocked $ 388.4 billion in revenues for 2018. Click here to read in full the report on Shell’s Series-B funding in PRESPL.

11:25 am

Govt sops boost sugar stocks

Stocks of sugar companies soared in an otherwise bearish market, with the Cabinet clearing fresh export concessions for sugar mills.

On Wednesday, the Cabinet approved incentives of Rs 6,268 crore ($876.74 million) to encourage cash-strapped mills to export 6 million tonnes of sugar in the sugar marketing year starting from October 1.

Shares of Bannari Amman Sugar rose two per cent to Rs 1,150, Dhampur Sugar Mills was up 0.15 per cent at Rs 151, Shashi Sugar rose 5 per cent at Rs 8, Dharani Sugar was up 17 per cent at Rs 8 and Bajaj Hindustan Sugar was up 4 per cent at Rs 6.

India is expected to produce 285 lakh tonnes of sugar in this sugar marketing year. With an inventory of 145 lakh tonnes, the total sugar supply is expected to be the highest ever at about 430 lakh tonnes, exerting huge pressure on prices. _ Our Bureau

11:10 am

Gold, silver open firm as rupee remains weak

Quick funds: With NBFCs turning cautions to lending, many customers are option for gold loans, say players. – iStock.com

Gold and silver prices opened with marginal gains in the futures market on Thursday as currency pressure prevailed.

On Thursday, the rupee weakened further to inch towards the Rs 72 levels against the dollar. The Indian rupee opened lower at Rs 71.90 and depreciated further to Rs 71.95 in the early trades.

This comes despite Wednesday’s Cabinet announcements triggering positive sentiment for the sugar industry and farmers for increased incomes in the coming days and better job prospects through the 100 per cent contract manufacturing decision. Click here to read in full the domestic gold market report.

11:00 am

Company News: Kalpataru Power Transmission

Kalpataru Power Transmission informed the exchanges on Wednesday that it received a notice from the World Bank alleging process violations in bids submitted by its transmission business on two projects in Africa more than 7 years ago. The company disagrees with the Bank’s position and intends to contest the proceedings vigorously, it added. Shares of Kalpataru Power slumped 6.95 per cent at ₹441.05 on the BSE on Wednesday.

10:45 am

Gold prices tick up on recession fears, trade uncertainty

Gold prices eked out gains on Thursday against the backdrop of recession fears, with traders tracking signs of progress on the US-China trade talks and global central banks for direction on interest rates.

Spot gold rose 0.2 per cent to $1,542.06 per ounce, as of 0331 GMT. On Wednesday, the bullion ended lower but remained around its over six-year peak of $1,554.56 hit on Monday. US gold futures were up 0.1 per cent at $1,550.80 an ounce. Click here to read in full the global gold report.

10:25 am

Rupee falls 17 paise against US dollar in early trade

Identification of currency notes is key to successful completion of cash-based transactions by visually impaired persons – FRANCIS MASCARENHAS

The rupee depreciated by 17 paise to 71.95 against the US dollar in early trade on Thursday, tracking a weak domestic equity market and persistent foreign fund outflows. Pessimism over US-China trade talks also put pressure on the domestic unit, forex dealers said.

However, a weak dollar against other major currencies overseas and softening crude prices restricted the rupee’s fall, they added. Click here to read in full the rupee report.

10:05 am

Sensex, Nifty trade on a weak note

The benchmark indices, the BSE Sensex and the NSE Nifty, were trading around 0.5 per cent lower in early session on Friday. The Sensex was at 37,291, down 160 points or 0.43 per cent lower, while the Nifty was at 11,003, down 42 points or 0.39 per cent weaker on its overnight close.

The top gainers on the Sensex were Sun Pharma, Vedanta, Tata Motors, Maruti and IndusInd Bank, while the laggards were YES Bank, ICICI Bank, HCL Tech, HDFC and Axis Bank.

The healthcare, metals, capital goods and auto sector shares rose between 0.3-0.55 per cent to prop up the BSE index, while the finance, capital goods, IT and technology sector shares weighed on the benchmark index, losing between 0.40-0.65 per cent during the session.

According to an agency report, the Sensex, which dropped over 250 points in early trade, was dragged by heavy selling in banking stocks ahead of the expiry of August derivatives amid weak cues from other Asian markets.

In the previous session, the BSE barometer settled 189.43 points, or 0.50 per cent, lower at 37,451.84. Similarly, the broader NSE Nifty fell 59.25 points, or 0.53 per cent, to 11,046.10.

During the day, investors can expect greater volatility in the market on the back of weekly and monthly expiration of the August futures and options (F&O) contracts, said Shrikant Chouhan, Head Technical Research, at Kotak Securities.

Foreign portfolio investors sold shares worth a net of Rs 935.27 crore on Wednesday, while domestic institutional investors purchased shares worth Rs 359.32 crore, provisional data showed.

The rupee, meanwhile, depreciated 18 paise against its previous close to trade at 71.95 in early session.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Korea and Japan were trading on a negative note in their respective late morning sessions.

Exchanges on Wall Street ended in the green on Wednesday.

Global oil benchmark Brent crude was trading 0.57per cent lower at 59.59 per barrel. (with inputs from PTI)

9:55 am

Oil prices pegged back by mounting concern over US economy

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of United States (US) economy. Click here to read in full the crude oil market report.

9:45 am

Yen on backfoot as returning confidence dulls safe-haven allure

The dollar held gains against the safe-haven yen on Thursday as ebbing recession worries soothed markets after earlier volatility although the pound nursed its losses as investors became increasingly worried about a hard Brexit. Click here to read in full the global forex markets report.

9:35 am

Why the stock of RBL Bank has fallen 40 per cent over the past month

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, losing about 40 per cent over the past month, since it announced its June quarter results. While the bank delivered strong performance, the management indicating possible deterioration in its asset quality in the next 2-3 quarters, had rattled investors. Click here to read in full the report on why the RBL stock has fallen 40 per cent over the past month.

9:25 am

Asian shares struggle on darkening global outlook

MSCI Asia-Pacific index up 1 per cent. File Photo – Reuters

Global bond yields flirted with record low levels while stocks struggled to recover on Thursday as economic turbulence from intensifying United States (US)-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours. Click here to read in full the global markets report.

9:15 am

Opening bell

The Sensex and the Nifty opened Thursday’s session in the red. The Sensex was at 37,283, down 168 points or 0.45 per cent lower, while the Nifty was at 10,988, down 57 points or 0.52 per cent weaker.

9.00 am

Today’s Pick: Tata Global Beverages (₹280): Buy

The stock of Tata Global Beverages jumped 5 per cent breaking above a key resistance at ₹270 on Wednesday. This rally has strengthened the short-term uptrend and also provides traders with a short-term horizon an opportunity to buy the stock at current levels.

The stock has been in an intermediate-term uptrend since early February 2019 low at ₹177. During the uptrend, the stock had decisively breached a key resistance at ₹220 in May and continued to trend upwards. Short-term trend is also up for the stock. Click here to read in full Today’s Pick on Tata Global Beverages.

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Opening Bell: Sensex, Nifty trade flat, Infosys, TCS top gainers

Mahanagar Gas, Zee entertainment, Infosys, M&M, HDFC Bank, TCS are among major gainers on the indices, while losers include Britannia, Yes …

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Corporate Earnings, Macro Data To Impact Equity Indices: Experts

Attractive valuations along with expectations of another round of key lending rate cut and stock specific movement might just lift the subdued …
Mumbai:

Attractive valuations along with expectations of another round of key lending rate cut and stock specific movement might just lift the subdued sentiments in the domestic equity markets during the upcoming trade week.

Lower-than-expected growth in quarterly results as well as a massive flight of foreign funds have dampened the stock markets lately.

“Oversold readings on large, mid and small cap indices abound. The market is now set for a rebound as the 38 days correction cycle has been repeating for the last three sessions,” said Sahil Kapoor, chief market strategist-research, Edelweiss Investor Research.

“The underperformer of this fall, the auto index has eked out a reversal this week. Expect Nifty to climb to 11,650 points in the short term. Over the next two weeks — two rate cuts — are expected, one each from the US Fed and the RBI (August 7).”

According to Deepak Jasani, head of retail research for HDFC Securities, though markets ended with the third consecutive week-on-week loss on July 26, the rate of fall has reduced over the last three sessions and “in fact the markets ended in the positive on last Friday”.

“This positive momentum could continue early next week with US Fed meet outcome (on July 31) and corporate results impacting further momentum in the markets,” Mr Jasani said.

One of the key factors to look out for next week will be the ongoing Q1 results, analyst opined.

Companies such as DLF, Dr Reddys Labs, GIC, Axis Bank, Hero MotoCorp, NMDC, Tech Mahindra, Indian Oil Corp, Bharti Airtel, HDFC, ITC, Power Grid Corp and State Bank of India are expected to announce their Q1 earning results this week.

“The expectation for Q1 is muted with PAT (profit after tax) growth of 11 per cent YoY compared to high valuation of 19x on a one-year-forward basis. However, there are concerns that earnings growth may not revamp as fast as it was expected about a quarter back,” said Vinod Nair, head of research at Geojit Financial Services.

“While FIIs, one of the important liquidity providers, are on risk-off mode, a downgrade in earnings and slowdown in liquidity will continue to impact the market in the near term,” said Mr Nair.

Besides the Q1 results, investors will look out for macro-economic data points such as the eight core industries’ (ECI) output and the country’s fiscal deficit numbers.

Additionally, the Purchasing Managers’ Index (PMI) manufacturing and services’ figures, as well as monthly automobile sales data will be released during the week.

In terms of currency, the rupee on a weekly basis weakened by 9 paise to close at 68.90 from its previous week’s close of 68.81 per greenback.

“Rupee broadly traded around 68.85 to 69.12 range during the week. Expect rupee to test weaker levels within the range and risk of breaking out beyond 69.10 to 69.35,” said Sajal Gupta, head, forex and rates, Edelweiss Securities.

On technical charts, while the NSE Nifty50 remains in a downtrend, pullback rallies could be expected towards 11,456 points level, Mr Jasani said.

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Attractive valuations, hopes of RBI rate cut to boost equities (Market Outlook)

According to Deepak Jasani, Head of Retail Research for HDFC Securities, though markets ended with the third consecutive week-on-week loss on …

Attractive valuations, hopes of RBI rate cut to boost equities (Market Outlook)

28-Jul-2019 By BY ROHIT VAID

Mumbai

Posted 28 Jul 2019

Attractive valuations along with expectations of another round of key lending rate cut and stock specific movement might just lift the subdued sentiments in the Indian equity markets during the upcoming trade week.


Lower-than-expected growth in quarterly results as well as a massive flight of foreign funds have dampened the stock markets lately.

“Oversold readings on large, mid and small cap indices abound. The market is now set for a rebound as the 38 days correction cycle has been repeating for the last three sessions,” said Sahil Kapoor, Chief Market Strategist-Research, Edelweiss Investor Research.

“The underperformer of this fall, the auto index has eked out a reversal this week. Expect Nifty to climb to 11,650 points in the short term. Over the next two weeks — two rate cuts — are expected, one each from the US Fed and the RBI (August 7).”

According to Deepak Jasani, Head of Retail Research for HDFC Securities, though markets ended with the third consecutive week-on-week loss on July 26, the rate of fall has reduced over the last three sessions and “in fact the markets ended in the positive on last Friday”.

“This positive momentum could continue early next week with US Fed meet outcome (on July 31) and corporate results impacting further momentum in the markets,” Jasani said.

One of the key factors to look out for next week will be the ongoing Q1 results, analyst opined.

Companies such as DLF, Dr Reddys Labs, GIC, Axis Bank, Hero MotoCorp, NMDC, Tech Mahindra, Indian Oil Corp, Bharti Airtel, HDFC, ITC, Power Grid Corp and State Bank of India are expected to announce their Q1 earning results next week.

“The expectation for Q1 is muted with PAT (profit after tax) growth of 11 per cent YoY compared to high valuation of 19x on a one-year-forward basis. However, there are concerns that earnings growth may not revamp as fast as it was expected about a quarter back,” said Vinod Nair, Head of Research at Geojit Financial Services.

“While FIIs, one of the important liquidity providers, are on risk-off mode, a downgrade in earnings and slowdown in liquidity will continue to impact the market in the near term,” said Nair.

Besides the Q1 results, investors will look out for macro-economic data points such as the eight core industries’ (ECI) output and the country’s fiscal deficit numbers.

Additionally, the Purchasing Managers’ Index (PMI) manufacturing and services’ figures, as well as monthly automobile sales data will be released during the week.

In terms of currency, the rupee on a weekly basis weakened by 9 paise to close at 68.90 from its previous week’s close of 68.81 per greenback.

“Rupee broadly traded around 68.85 to 69.12 range during the week. Expect rupee to test weaker levels within the range and risk of breaking out beyond 69.10 to 69.35,” said Sajal Gupta, Head, Forex and Rates, Edelweiss Securities.

On technical charts, while the NSE Nifty50 remains in a downtrend, pullback rallies could be expected towards 11,456 points level, Jasani said. IANS

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