Closing bell
Both the benchmark indices, the BSE Sensex and the NSE Nifty, dropped sharply lower in late trading to close Wednesday's session down nearly 1 per cent.
The Sensex closed at 36,108, dropping 336 points or 0.92 per cent, while the Nifty finished at 10,831, down 91 points or 0.84 per cent lower on its previous close.
The top gainers on the Sensex were Sun Pharma, YES Bank, Tata Steel, Hindustan Unilever and Bajaj Finance, while the laggards were ITC, Power Grid, Infosys, M&M and NTPC.
European shares dip as profit warnings add to macro gloom
European shares dipped on Wednesday morning as a new batch of corporate updates prompted fresh concerns, particularly on the tech sector, and added to worries about a global growth slowdown and Sino-US trade negotiations. Read the European stocks report in full here.
Oil inches up on hopes fiscal stimulus will stem economic slowdown
Oil prices inched up on Wednesday after China and Japan said they would use fiscal spending to stem an economic slowdown that is weighing on global financial markets. International Brent crude oil futures were at $61.79 per barrel at 0743 GMT, up 29 cents, or 0.5 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $53.22 per barrel, up 21 cents, or 0.4 per cent. Read the oil markets report in full here.
Dollar holds at 3-week highs amid growing concern on global growth
The dollar held near a three-week high on Wednesday after the Bank of Japan left monetary policy unchanged , boosting risk appetite and sending the yen lower. Click here to read the dollar report in full.
Sensex down over 150 points
The Sensex lost more than 150 points in the afternoon session to slip back into the red. It was trading at 36,372, down 170 points or 0.47 per cent. The NSE Nifty was trading at 10,873, down 49 points or 0.45 per cent lower.
The top gainers on the Sensex were Sun Pharma, YES Bank, Tata Steel, Hindustan Unilever and Bajaj Finance, while the laggards were ITC, Infosys, M&M, HDFC and TCS.
GGroww raises $6.2 mn in Series A funding led by Sequoia India
Groww, a free investment platform for millennials, has raised $6.2 million in a Series A round of funding led by Sequoia India. The round also witnessed participation from Y Combinator, Propel Venture Partners and Kauffman Fellows. Click here to read the full report on GGroww raising Series A funding
BOJ cuts inflation view, keeps stimulus
The Bank of Japan cut its inflation forecasts on Wednesday and warned of rising risks to the economy from faltering global demand, further pushing back policymakers' years-long efforts to foster durable growth. Read the fulll report on BoJ inflation forecasts here.
Asian shares pause amid concerns over growth, trade
Asian stocks trod water on Wednesday as concerns over the outlook for global economic growth and the ongoing Sino-US trade war kept investors away from riskier assets. Spreadbetters expected European stocks to open lower, with Britain's FTSE losing 0.3 per cent, Germany's DAX slipping 0.2 per cent and France's CAC shedding 0.4 per cent. Read the Asian stock markets report in full here.
Sensex, Nifty move up
The Sensex recouped its early losses to trade in the green in the afternoon session. It was trading up 4 points at 36,449. The broader NSE Nifty was similarly trading in positive territory at 10,931, up 8 points.
The top gainers on the Nifty were Sun Pharma, ZEEL, YES Bank, Wipro and Tata Steel, while the laggards were TCS, Infosys, Grasim, HDFC and Hindustan Petroleum.
Nifty call: Go long at current levels with stop-loss at 10,915
The Nifty 50 futures contract has been trading mixed over the last few days. The contract has been stuck in a sideways range between 10,850 and 11,000 over the last one week. Within this range, the contract has bounced higher over the past few sessions, after making a low of 10,888. Clik here to read the Nifty call report in full.
Gold steady on safe-haven demand
Gold prices stood firm on Wednesday, after gaining the most since January 9 the day before, on higher demand for safe-haven assets over concerns of the slowing global economy and uncertainties about the US-China trade row. Click here to read in full the gold markets report .
China to step up fiscal spending this year to support economy
China will step up fiscal spending this year to support its economy, focusing on further cuts in taxes and fees for small firms, finance ministry officials said on Wednesday. Mounting pressure on the world's second-biggest economy pushed growth last year to its lowest since 1990 even as Beijing stepped up stimulus measures and spurred banks to lend more. Click here to read more on Chinese plans to step up spending to support economy
‘Investments in retail sector surged to Rs 1,300 cr in 2018’
The Indian retail sector has seen investments surge, with close to Rs 1,300 crore in 2018 alone. While the period between 2015 – 2018 saw investment flow of Rs 5,500 crore. Read the report on retail sector investments surge here.
Glenmark gets tentative USFDA nod for prostate cancer drug
Glenmark Pharmaceuticals has received a tentative nod from the US health regulator for Abiraterone Acetate tablets, used in the treatment of prostate cancer. Read the full report on USFDA nod for Glenmark prostate cancer drug here.
Move to allow NITI Aayog to steer drug-price control raises hackles
In what seems like diluting the National Pharmaceutical Pricing Authority’s (NPPA) powers, the government has now authorised think-tank NITI Aayog to recommend drugs that could be put under price control. Click here to read the full report on move to allow NiTi Aayog to steer drug price control
Nalco rises on report of coal linkage extension
National Aluminium Co Ltd shares rose up as much as 3.71 per cent to Rs 62.95, their highest since January 16. The Standing Linkage Committee of the Ministry of Coal has recommended a three-year extension of bridge coal linkage for the company, according to a report. Click here to read the report on Nalco share price movement .
Sensex, Nifty edge lower in morning session
The BSE Sensex was trading 75 points lower at 36,369 in the morning session on Wednesday. The NSE Nifty was trading at 10,908, down 13 points or 0.13 per cent lower.
The top gainers on the Sensex were YES Bank, Hindustan Unilever, Tata Steel, Bajaj Finance, and ITC, while the laggards were Infosys, HDFC, IndusInd Bank, TCS and Kotak Bank.
Wipro hits near 19-year high
Shares of software services provider Wipro Ltd gained as much as 1.95 per cent to Rs 353.25, their highest since February 23, 2000. The stock broke above a resistance at Rs 348.22, the 61.8 per cent Fibonacci projection level of the uptrend from the June 6, 2018 low to the September 24, 2018 high. Click here to read the Wipro share price movement report in full.
Wall St drops as economic outlook, corporate forecasts sour
US stocks ended lower on Tuesday, snapping a four-session rally, as a gloomy global economic growth outlook, trade concerns and disappointing company forecasts dampened sentiment. All three major US stock indexes pared losses after White House economic advisor Larry Kudlow denied a report by the Financial Times that the Trump administration cancelled preparatory trade talks with China. Read the US stock markets report in full here.
Yen firms on global growth and trade concerns
The safe-have Japanese yen kept overnight gains against the dollar as concerns about slowing global growth and US-Sino trade tensions drove investors away from risky assets. Currency markets have been whipsawed over recent weeks as trader tried to come to terms with range of issues from Brexit to slowing global growth and the outlook for major central banks. Read the Asian currency market report in full here.
Rupee spurts 29 paise against dollar in early trade
The rupee rose 29 paise to 71.15 against the US dollar in early session Wednesday on increased selling of the American currency by exporters and banks amid a positive opening of the domestic equity markets. At the Interbank forex market, the rupee opened higher at 71.19 and advanced further to quote 29 paise higher at 71.15 against the dollar. Click here to read the rupee report in full.
Oil steady on hopes Chinese fiscal stimulus will stem economic slowdown
Oil prices stabilised on Wednesday after steep falls in the previous session, when markets were dragged down by growing concerns about an economic slowdown. Oil markets have been underpinned this year by production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), aimed at reining in an emerging supply overhang. Click here to read the oil market report in full.
Nifty, Sensex flat to mildly lower
The benchmark indices the NSE Nifty and the BSE Sensex were flat to mildly lower in early session on Wednesday. While the Sensex was quoting at 36,430, down 13 points or 0.04 per cent lower, the NSE Nifty was trading at 10,923, up 0.80 points or 0.01 per cent lower.
The top gainers on the Sensex were YES Bank, Tata Steel, VEDL, Bajaj Finance and Hindustan Unilever, while the laggards were Kotak Bank, Sun Pharmaceuticals, IndusInd Bank, Infosys and TCS.
PTI adds: Benchmark equity indices started on a cautious note, following tepid sentiment in other Asian markets.
A stronger rupee against the dollar and easing crude prices also influenced market sentiment.
Sectorwise, the BSE metal, oil & gas, FMCG, PSU, healthcare and banking indices rose to 1.05 per cent.
Brokers said recovery in other Asian markets after initial weakness, following overnight losses on Wall Street, influenced sentiments.
“As we inch closer to the interim budget, one can expect the volatility in the market to increase,” said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas.
Meanwhile, foreign portfolio investors (FPIs) continued their selling activity on domestic bourses here. They sold shares worth a net Rs 78.53 crore, while domestic institutional investors (DIIs) sold shares worth Rs 84.15 crore Tuesday, provisional data showed.
Globally, Hong Kong’s Hang Seng was up 0.14 per cent and Shanghai Composite Index rose 0.07 per cent in late morning deals. Japan’s Nikkei also gained 0.04 per cent.
The US Dow Jones Industrial Average ended 1.22 per cent lower on Tuesday.
Broker's call: ICICI Lombard (Buy)
JMFL
ICICI Lombard (Buy)
CMP: ₹846
Target: ₹1,030
In 3QFY19, ICICI Lombard recorded strong gross growth in premium of 26 per cent y-o-y driven by the motor third party (TP) business (+66 per cent y-o-y increase). The insurer was a significant beneficiary of the court ruling on mandatory long-term motor TP insurance given its dominance in motor sub-segments such as private cars and two-wheelers. However, PAT of ₹239 crore was a bit weak, growing just 3 per cent y-o-y. Click here to read the Broker's Call on ICICI Lombard in full.
NCLT nod for Maharashtra Seamless's plan to acquire United Seamless Tubulaar
Maharashtra Seamless on Tuesday said the Hyderabad Bench of the National Company Law Tribunal approved the Resolution Plan submitted by it for the acquisition of United Seamless Tubulaar Pvt Ltd.
The company initiated the acquisition of USTPL through the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016. The stock of Maharashtra Seamless jumped 2.45 per cent at ₹497.85 on the BSE.
Lodha Developers to buyback dollar-denominated bonds
Lodha Developers International, a subsidiary of real estate firm Lodha Group, on Tuesday announced a buyback programme for its senior dollar denominated bonds, which are due in 2020. With the purchase of the 2020 Bonds, Lodha Group will provide liquidity to the bondholders, pro-actively manage its capital structure and reduce gross debt and leverage, it added. Click here to read in full the report on Lodha Developers' buyback programme
Den, Hathway: Reliance Industries gets CCI nod
The Competition Commission of India on Tuesday gave approval to Reliance Industries for acquisition of Den Networks and Hathway Cable and Datacom. The approval will enable RIL to subscribe to the preferential issue of shares by Den Networks and Hathway Cable and purchase of Den’s shares from the promoter. In October 2018, RIL had entered into a deal to acquire 51.3 per cent stake in Hathway Cable and 66 per cent stake in Den for a total sum of ₹5,230 crore.
IOB mops up ₹217 cr via ESPS
Indian Overseas Bank on Tuesday said that it has mobilised ₹217 crore through its employee stock purchase scheme (ESPS) which was launched on December 31, 2018 and closed on January 21, 2019. The company, in a release, said its employees were offered upto ₹18.24 crore equity shares at a discounted price of ₹11.90 which was oversubscribed by the bank’s 24,550 employees. The bank said it has created a new record among public sector banks as 92 per cent of its employees subscribed over 100 per cent of its ESPS.
Asian shares dip, worries over growth and trade sour mood
Asian stocks edged down on Wednesday on mounting signs of slowing global growth and anxiety over a yet-unresolved Sino-US trade dispute. Read the full report on Asian stock markets here.
Now, IL&FS heat singes mutual fund industry
Contrary to claims by the mutual fund industry that its investments in the debt-ridden IL&FS are safe, action by rating agency ICRA on Tuesday indicated negative implication for the sector. Read the full report on impact of IL&FS crisis on MF industry here.
Reliance gets green signal for Jamnagar refinery expansion
Mukesh Ambani-led Reliance Industries Ltd has secured backing of the key expert appraisal committee in the Ministry of Environment, Forest and Climate change to expand the capacity of its export-oriented refinery in the special economic zone (SEZ) at Jamnagar by 5.8 million tonnes (mt). Read the full report on green signal for RIL's Jamnagar refinery expansion here.
Opening bell
The Sensex opened Wednesday's session in positive territory at 36,491. This represented a gain of 49 points or 0.14 per cent on Tuesday's close. The NSE Nifty opened mildly higher at 10,931, up 8 points or 0.08 per cent higher.
Day trading guide for January 23, 2019
Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:
₹2133 • HDFC Bank
S1 | S2 | R1 | R2 | COMMENT |
2120 | 2100 | 2150 | 2175 | Initiate fresh long positions only if the stock breaks above ₹2,150. Keep the stop-loss at ₹2,130 |
₹744 • Infosys
S1 | S2 | R1 | R2 | COMMENT |
739 | 729 | 755 | 800 | Outlook is bullish. Go long and also accumulate on dips. Stop-loss can be placed at ₹725 |
₹289 • ITC
S1 | S2 | R1 | R2 | COMMENT |
284 | 280 | 292 | 298 | Resistance ahead. Go short with a stop-loss at ₹296 if ITC reverses lower from ₹292. |
₹144 • ONGC
S1 | S2 | R1 | R2 | COMMENT |
143 | 141 | 146 | 148 | Near-term outlook is unclear. Avoid trading this stock until a clear trade signal emerges |
₹1235 • Reliance Ind.
S1 | S2 | R1 | R2 | COMMENT |
1195 | 1170 | 1250 | 1280 | Uptrend is intact. Go long and also accumulate on dips. Keep a wide stop-loss at ₹1,180 |
₹290 • SBI
S1 | S2 | R1 | R2 | COMMENT |
287 | 283 | 294 | 298 | Near-term view is negative. Go short and also accumulate on rallies with a stop-loss at ₹296 |
₹1900 • TCS
S1 | S2 | R1 | R2 | COMMENT |
1875 | 1840 | 1935 | 1975 | Wait for dips and initiate fresh long positions at ₹1,880. Stop-loss can be placed at Rs. 1,860 |
10929 • Nifty 50 Futures
S1 | S2 | R1 | R2 | COMMENT |
10870 | 10835 | 10965 | 11000 | Initiate fresh long positions with a stop-loss at 10,985 only if the index futures breaks above 11,000 |
S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.
Today's Pick: Delta Corp (₹234.4): Sell
The outlook for the stock of Delta Corp is negative. The stock has been on a free fall over the last one week. It fell over 3 per cent on Tuesday breaking below a key support level of ₹240. The stock has tumbled over 9 per cent in the last one week. Cluster of supports are poised in between ₹241 and ₹245 which can cap the upside in the short term. Intermediate bounce to this resistance zone is likely to find fresh sellers coming into the market. Read the Today's Pick on Delta Corp in full here