Markets: Sensex plunges 310 points to 35,498 at close

Rupee drops to 71.39 versus $ in late trade

File Photo

The rupee was trending lower at 71.39 to the dollar in late session on Monday. Earlier, the domestic unit weakened by 15 paise to trade at 71.38 against the US dollar in early trade amid heavy foreign fund outflows and subdued domestic equity markets. Click here to read the rupee report in full.

Closing bell

The Sensex plunged 310 points or 0.87 per cent to 35,498 points at close of trading on Monday. The Nifty was similarly sharply lower at 10,640, representing a fall of 83 points or 0.78 per cent.

The top gainers on the Sensex were ONGC, Tata Motors, Axis Bank, VEDL and NTPC, while the losers were led by TCS, YES Bank, Reliance Industries, ITC and Sun Pharma.

The YES Bank stock, which lost over 8 per cent earlier in the day, was down 2.24 per cent at the close. The stock fell after Reserve Bank warned the lender of regulatory action for disclosure of a nil divergence report in violation of norms.

PTI reports: The BSE Sensex plunged on heavy selling in banking, FMCG, IT, auto and pharma stocks amid sustained foreign fund outflows.

Banking shares weakened after Reserve Bank Governor Shaktikanta Das said he would meet heads of public and private sector banks this week to discuss transmission of interest rate cuts to borrowers.

Earlier this month, the Reserve Bank cut the benchmark interest rate by 0.25 per cent to 6.25 per cent. However, only a handful of banks, including SBI, have reduced their rates, that too by just 0.05 per cent.

Sectorally, BSE bankex, auto, FMCG, healthcare, metal and teck indices fell up to 1.36 per cent. Only telecom and realty ended in the green, rising up to 0.88 per cent. Broader indices ended lower, with the BSE Midcap and Smallcap falling up to 1.04 per cent.

The rupee, meanwhile, depreciated 21 paise to 71.44 against the US dollar (intra-day).

Brent crude futures were trading 0.15 per cent higher at $66.35 per barrel. Meanwhile, foreign institutional investors sold shares worth a net Rs 966.43 crore on Friday, while domestic institutional investors were net buyers to the tune of Rs 853.25 crore, provisional data available with BSE showed.

European stocks at four-month highs as trade talks progress

Representative image.

Fresh from touching their highest level in four months on Friday, European stocks rose further in early deals on Monday as investors bet more progress would be made in US-China trade talks continuing in Washington this week. Financials were the biggest boost to the STOXX 600 as optimism over a potential trade war resolution took hold. Click here to read the European markets report in full.

Oil prices hit 2019 highs amid supply cuts, trade talk hopes

Oil prices on Monday hit their highest levels since November last year, lifted by OPEC-led supply cuts, US sanctions on Iran and Venezuela, and hopes that the Sino-US trade dispute may soon end. International Brent crude futures were at $66.66 per barrel at 0746 GMT, up 41 cents, or 0.6 per cent, from their last close. Brent earlier climbed to its highest since November 2018 at $66.78 a barrel. Click here to read the oil markets report .

YES Bank shares plunge over 8% post RBI censure

Shares of YES Bank tumbled over 8 per cent Monday after the Reserve Bank warned the lender of regulatory action for disclosure of nil divergence report, in violation of norms. The company’s shares plummeted 8 per cent to Rs 201 on the BSE. At the NSE, shares plunged 8.21 per cent to Rs 201. Later, the stock recovered some of the lost ground and was trading at Rs 212.30, down 2.93 per cent during afternoon trade on the BSE. Click here to read the full report on YES Bank share price movement .

RBI to nudge bank chiefs on rate cut transmission

The Reserve Bank of India (RBI) will meet the chiefs of public and private sector banks on Thursday to discuss transmission of policy rate cuts through cuts in the lending rates by the banks. Click here to read the full report on RBI move for transmission of rates .

Sensex, Nifty down 0.5%

The Sensex and the Nifty held losses of around 0.5 per cent in the afternoon session on Monday. The Sensex was trading at 35,616, down 195 points or 0.55 per cent lower, while the Nifty was at 10,673, down 50 points or 0.47 per cent lower.

The top gainers on the Sensex were ONGC, Axis Bank, Tata Steel, Larsen & Toubro, and VEDL, while the laggards were TCS, YES Bank, Asian Paints, Coal India and Bajaj Auto.

Nifty Call: Nifty 50 February Futures (10,707)

Following a gap up open at 10,809, the Nifty February month futures contract began to decline due to selling pressure. The contract breached a key support at 10,700 and recorded an intra-day low at 10,670 levels. Both the Sensex and the Nifty also began to decline after a positive start. The market breadth of the Nifty index is biased towards declines. Click here to read the Nifty Call report in full.

Sensex, Nifty down 0.51%

The Sensex and the Nifty continued to trade in negative territory at midsession. The Sensex was down 185 points or 0.52 per cent lower at 35,623, while the Nifty was trading at 10,669 down 54 points or 0.51 per cent lower.

The top gainers on the Sensex were ONGC, Tata Steel, IndusInd Bank, HDFC and VEDL, while the laggards were YES Bank, TCS, Asian Paints, HCL Tech and Reliance.

Gold hits 2-week high on trade deal hopes

Gold prices rose to their strongest level in more than two weeks on Monday as the dollar weakened on hopes the US and China are nearing a trade deal, while palladium hit a record high. Spot gold had gained 0.1 per cent to $1,322.72 per ounce as of 0614 GMT, just below a 9-month peak of $1,326.30 an ounce marked on January 31. US gold futures rose 0.3 per cent to $1,326.1 an ounce. Click here to read in full the gold markets report .

L&T arm secures over Rs 7,000-cr order for airport construction

L&T Construction has secured a contract worth over Rs 7,000 crore for design and construction of a major airport on EPC basis, the company said in a statement on Monday. Click here to read in full the report on L&T Construction contract for airport .

HDFC Bank opens 5,000th branch

Private sector lender HDFC Bank opened its 5000th branch in Mumbai on Monday. “This branch was launched on the same day that it commenced operations in 1995, marking the start of its 25th year,” HDFC Bank said in a statement. The first branch was launched in Mumbai at Sandoz House, Worli. Click here to read the HDFC Bank report in full.

Sensex, Nifty undertone weak

The benchmark indices the BSE Sensex and the Nifty continued to trade in negative territory in the mid-morning session. The Sensex was quoting at 35,557, down 251 points or 0.70 per cent lower, while the Nifty was at 10,648, down 76 points or 0.71 per cent lower.

The top gainers on the Sensex were Tata Steel, ONGC, VEDL, SBI and IndusInd Bank, while the laggards were Asian Paints, TCS, YES Bank, HCL Tech and Hindustan Unilever.

Dewan Housing shares jump on stake sale report

DHFL said it is in the process of collating the requisite details. File Photo

Shares of Dewan Housing Finance Corp rose as much as 7 per cent on Monday, after a media report that Baring Pvt Equity, Bain Capital and Hero Fincorp are in talks to buy a stake in the debt-laden housing finance company. The stock has been under pressure since investigative media outlet Cobrapost had alleged last month that loans from state lenders were diverted by Dewan Housing to shell companies, including those linked to its controlling shareholders. Dewan has, however, denied lending to shell companies. Click here to read in full the DHFL share price report .

Dr. Reddy's surges 5% after USFDA report

Shares of Dr. Reddy's Laboratories Ltd climbed as much as 4.9 per cent to Rs 2,689.65, in their biggest intraday per cent gain since November 11. The US FDA has closed the Establishment Inspection Report (EIR) for FTO VII, the company's formulations manufacturing facility at Duvvada in south India, the drugmaker said on Saturday. Click here to read in full the share price report on Dr Reddy's .

YES Bank falls; RBI sends letter for breaching confidentiality

Shares of Yes Bank Ltd fell as much as 8.2 per cent to Rs 156.60 on Monday. The lender's shares surged on Thursday in their sharpest ever intra-day jump, after the Reserve Bank of India (RBI) cleared the bank of any divergences in bad loan reporting practices. Click here to read in full the share price report on YES Bank .

Gold at 2-week high on trade deal hopes

Gold prices climbs on increased buying by jewellers coupled with a firming trend overseas. File Photo

Gold prices rose to their strongest level in more than two weeks on Monday as the dollar weakened on hopes the US and China are nearing a trade deal, while palladium hit a record high. Spot gold had gained 0.3 per cent to $1,324.80 per ounce by 0324 GMT, just below a 9-month peak of $1,326.30 an ounce marked on January 31. US gold futures rose 0.4 per cent to $1,327.8 an ounce. Click here to read the gold market report in full.

Asia bulls dare to hope on trade talks, stimulus

Investors look at screens at a brokerage house in Shanghai. China’s rule changes aimed at providing support for the country’s stock market. (file photo)

Asian share markets bounced broadly on Monday as investors dared to hope for both progress at Sino-United States (US) trade talks in Washington this week and more policy stimulus from major central banks. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 per cent, recovering from a sharp fall last Friday. Click here to read in full the Asian markets report .

Sensex, Nifty trade lower

The benchmark indices, the BSE Sensex and the NSE Nifty, were stuck in the red in morning trade on Monday. The Sensex was quoting at 35,645, down 163 points or 0.46 per cent lower, while the Nifty was at 10,674, down 49 points or 0.46 per cent lower.

The top gainers on the Sensex were VEDL, ONGC, NTPC, Tata Steel and ITC, while the laggards were Asian Paints, TCS, HCL Tech, Bajaj Auto and Bajaj Finance. 

According to reports, investors remained cautious ahead of the RBI central board meeting, which is expected to take up the issue of interim dividend to be paid to the government.

2019 hasn’t come bearing gifts for zinc

The year of 2018 was tumultuous for zinc. The market saw wild swings. Prices rose to a high of $3,600 a tonne and then fell to a low of $2300/t at one point. Clearly, trade friction between two of the world’s largest economies — the US and China — distorted the market and fuelled negative sentiments. Click here to read in full the Commodity Analysis on Zinc .

BHEL in a downtrend across time-frames

The stock of Bharat Heavy Electricals Ltd (BHEL) is in a downtrend across all-time frames — long, medium and short term. In early September 2018, it encountered a key resistance at around ₹80 and resumed its downtrend. Since then, the stock has been in a medium-term downtrend. While trending down, it breached the key supports at ₹75 and ₹65. The stock tumbled sharply in early February and registered a multi-year low at ₹56.25. Subsequently it bounced and hovers above a key support in the band between ₹56 and ₹60. Click here to read the Technical Analysis on the BHEL stock in full.

Rupee slides 15 paise versus $ in early trade

The rupee weakened by 15 paise to trade at 71.38 against the US dollar in early trade on Monday amid heavy foreign fund outflows and subdued domestic equity markets. Click here to read the full rupee report .

Bullion Cues: Gold gears up for a fresh rally

Gold remained stable above the psychological level of $1,300 per ounce last week. The global spot gold prices were stuck in a narrow $1,300-1,315 range for most part of the week. Strength in the US dollar and a strong surge in the equity market kept gold subdued and range-bound. Click here to read the outlook for gold .

Sensex, Nifty down sharply

The benchmark indices, the BSE Sensex and the NSE Nifty, dropped sharply lower in early trading on the opening day of the week. The Sensex tanked 218 points or 0.61 per cent to trade at 35,590, while the Nifty dropped 66 points or 0.62 per cent to quote at 10,658.

According to reports, investors were cautious ahead of RBI’s board meeting. Finance Minister Arun Jaitley is scheduled to address the customary post-Budget meeting of the central board of the Reserve Bank later in the day, and highlight the key points of the interim Budget, including the fiscal consolidation roadmap.

The meeting, according to sources, will take a call on the interim dividend to be paid to the government during the current fiscal.

YES Bank fell up to 5 per cent after the private bank, in a regulatory filing on Friday, said it had received a letter from the Reserve Bank of India which noted that the risk assessment report (RAR) was marked 'confidential’.

It was expected that no part of the report be divulged except for the information in the form and manner of disclosure prescribed by regulations, the RBI letter said, adding that the issuance of a press release has, therefore, been viewed seriously by the RBI and could entail further regulatory action/s.

Other losers on the Sensex pack included HCL Tech, HUL, Bajaj Auto, TCS, Reliance, Bajaj Finance, Asian Paints, M&M and Bharti Airtel, falling up to 1.68 per cent.

While, NTPC, Vedanta, Tata Steel, ONGC, SBI, L&T, PowerGrid, ITC and Sun Pharma were the top gainers, rising up to 2.24 per cent.

Meanwhile, on a net basis, foreign institutional investors sold shares worth a net of Rs 966.43 crore on Friday, while domestic institutional investors were net buyers to the tune of Rs 853.25 crore, provisional data available with BSE showed.

Elsewhere in Asia, Hong Kong’s Hang Seng rallied 1.67 per cent, Shanghai Composite Index was up 1.79 per cent higher, Kospi gained 0.73 per cent, and Japan’s Nikkei soared 1.78 per cent in early trade.

On Wall Street, the Dow Jones Industrial Average ended 1.33 per cent higher on Friday. The rupee, meanwhile, depreciated 13 paise against the US dollar to 71.36. Benchmark Brent crude futures slipped 0.09 per cent to $66.19 per barrel. (With inputs from PTI)

Insecticides India: Revival in growth

Investors can consider buying the stock of Insecticides India, a player in the crop protection space. The company is a manufacturer of insecticides, weedicides, fungicides and plant growth regulators (chemicals that help in the growth of plant cells and tissues). It is among the top 10 agro-chemical players in the country and holds about 7 per cent market share. Click here to read in full the Technical Analysis on the Insecticides India stock .

Anil Ambani-led Reliance Group in standstill pact with lenders

A majority of lenders to the Anil Ambani-led Reliance Group has agreed to an in-principle standstill not to sell any of the promoters’ pledged shares till September, 30, 2019. Click here to read in full the report on the Anil Ambani group's standstill pact with lenders .

Dollar eases as trade deal prospects bolster risk, sterling gains

The dollar was marginally weaker on Monday, as increasing expectations of a United States (US)-Sino trade deal led investors to shift away from the safety of the greenback into riskier assets. Click here to read the full dollar report.

Oil hits 3-month high on OPEC cuts, US sanctions on Iran, Venezuela

International Brent crude futures hit a high of $66.78 per barrel before easing to $66.65 per barrel, up 0.6 per cent from their last close. Click here to read the oil market report in full.

When cover for farmers came a cropper

Farmers of Jalna district in Aurangabad Division of Maharashra, who planted pomegranate, mango and sweet lime in the 2017 kharif season and lost their crop because of a drought are in a state of despair. Click here to read in full the report on crop insurance .

Malvinder: For spiritual seat, Shivinder allowed Dhillon to siphon off ₹8,646 crore

After years of speculation that Gurinder Singh Dhillon, head of Radha Soami Satsang Beas (RSSB), a North India-based spiritual commune, received thousands of crores from the Singh brothers of Ranbaxy, Malvinder Singh has now detailed how money allegedly flowed from his companies to the ‘spiritual leader.’ Click here to read in full the report on Malvinder Singh's accusations against his younger brother .

India Inc earnings take a knock in Q3

India Inc has taken it on the chin in the quarter ended December 2018, with adjusted profits recording a 3.2 per cent fall over the three months ended December 2017 (year-on-year). Iffy demand in some pockets, the lag effect of high commodity prices and higher interest costs dented profit growth. This is the worst performance so far in 2018-19. Adjusted profits grew by a healthy 23.3 per cent year-on-year in September 2018 quarter and by 35.8 per cent in the April –June 2018 period. Click here to read in full the report on India Inc earnings in Q3

Index Outlook: Get set for a turbulent patch

Investors in the Indian market have been beating a strategic retreat since the beginning of 2019. Foreign portfolio investors have net purchased just $139 million in equity so far this year and mutual funds and retail investors too have been more circumspect. This cat-on-a-hot-tin-roof behaviour of investors is resulting in a narrow sideways movement in the indices. Click here to read in full the Index Outlook

RBI central board to discuss interim dividend issue today

The RBI move comes as a relief for bidders who can use the new funding route to acquire stressed assets under the IBC Paul Noronha

The meeting of the central board of the Reserve Bank of India on Monday will take up the issue of payment of interim dividend. The meeting, which will be the first since the Interim Budget 2019-20, will discuss the Budget proposals and the macro-economic situation, especially the fiscal deficit target. It will be attended by Arun Jaitley, who resumed charge as Finance Minister last week, and the new RBI Governor, Shaktikanta Das. Click here to read the full report on RBI board meet .

Opening bell

The BSE Sensex and the NSE Nifty opened the week flat. The Sensex was up 22 points or 0.06 per cent higher at 35,831 points, while the Nifty opened at 10,738, up 14 points or 0.13 per cent higher.

Big Story: Outlook for the rupee

It was a roller-coaster ride for the rupee in 2018. The currency plummeted over 14 per cent during the year to record an all-time low of 74.48 against the dollar in October 2018. However, it managed to clawback from these depths, to close 2018 at 69.77, with 8.5 per cent loss. Click here to read the Big Story on outlook for the rupee in full.

Weekly Trading Guide for week beginning Monday, Feb 18, 2019

SBI (262.9)

SBI plummeted 7.7 per cent last week, breaking below the key support level of ₹275. Next key support is in the ₹259-258 region, which is likely to be tested in the near term. Whether the contract manages to reverse higher from this support zone or not will determine the direction of the next move. A bounce from the ₹259-₹258 support zone will trigger a corrective rally to ₹277 or ₹282. However, the broader sentiment will continue to remain negative. As such, the upside is likely to be capped. The indicators on the charts are also negative. The 21-day moving average is on the verge of going below the 100-day moving average. This is a negative signal, indicating that the upside could be limited. As such, an eventual break below ₹258 can take SBI lower to ₹254. A further break below ₹254 will drag the stock lower to ₹240. Traders can wait for a rise and go short at ₹273 and ₹279. Stop-loss can be placed at ₹288 for the target of ₹243. Revise the stop-loss lower to ₹270 as soon as the stock moves down to ₹267.

ITC (₹279.6)

ITC slumped to a low of ₹268.5 initially on Monday last week, but bounced immediately and traded within its ₹273-284 sideways range for the rest of the week. The near-term outlook is unclear. The stock can remain range-bound between ₹273 and ₹284 for some more time. A breakout on either side of ₹273 or ₹284 will then decide the direction of the next move. A strong break and a decisive close below ₹273 will turn the outlook negative and drag the stock lower to ₹264. On the other hand, if ITC manages to breach above ₹284, it can gain fresh momentum. In such a scenario, the stock can initially move up to ₹289. A further break above ₹289 will then increase the likelihood of the stock targeting ₹301. The sharp bounce from ₹268.5 last week indicates that the stock is getting fresh buyers at lower levels. This keeps the bias positive and the possibility high of the stock breaking the ₹273-284 range on the upside above ₹284 in the coming days. Investors can hold the long positions taken at ₹282, ₹278 and ₹272. Retain the stop-loss at ₹262.

Infosys (₹741.7)

The short-term uptrend in Infosys that has been in place since late December 2018 ended last week. The stock fell 2.4 per cent and closed well below the key 21-day moving average support level of ₹745. As long as Infosys trades below ₹750, the outlook will be negative and a fall to ₹720 is possible. A further break below ₹720 can pull the stock lower to ₹710 and ₹700 over the short term. The region between ₹710 and ₹700 is a strong short-term support for the stock. As such, a fall breaking below ₹700 is unlikely. Dips to the ₹710-700 support is a good buying opportunity. An upward reversal from this support zone will take Infosys initially towards ₹745 and ₹750. An eventual break above ₹750 will then increase the likelihood of the stock targeting ₹770 and ₹790. Traders with a medium-term perspective can make use of dips to go long at ₹720. Accumulate longs at ₹715 and ₹710. Stop-loss can be placed at ₹680 for the target of ₹790. Revise the stop-loss higher to ₹735 as soon as it moves up to ₹755.

RIL (₹1,243.5)

RIL fell over 2 per cent, breaking below the ₹1,260-1,255 support zone last week. The stock made a low of ₹1,215 and has bounced slightly from there towards the end of the week. Inability to breach ₹1,260 can keep the stock under pressure in the near term. An immediate support is at ₹1,223. A break below it can take RIL lower to ₹1,200. Whether RIL manages to bounce from ₹1,200 or not will be key in deciding the direction of the next move. A bounce from ₹1,200 will ease the downside pressure and take the stock higher to ₹1,250 and ₹1,260. A strong break and a decisive close above ₹1,260 will then increase the likelihood of the stock targeting ₹1,300 and ₹1,320. On the other hand, if RIL breaks below ₹1,200, it can fall to ₹1,165 or even ₹1,145. But such a strong fall breaking below ₹1,200 looks less likely as fresh buyers are likely to come at lower levels and limit the downside. Investors can hold the long positions taken at ₹1,260, ₹1,245 and ₹1,225. Retain the stop-loss at ₹1,180 for the target of ₹1,420.

Tata Steel (₹467.4)

Tata Steel rose to a high of ₹496.95, but failed to sustain the momentum. The stock reversed sharply lower from this high, wiping out all the gains made during the week and closed slightly in the red. The 55-day moving average resistance at ₹492 has held very well and has triggered this reversal. The weekly candlesticks give a mixed outlook, but the daily chart looks bearish. The price action over the last couple of weeks indicates that the stock is getting fresh selling pressure at higher levels in the ₹490-500 region. An immediate support is at ₹460. A break below it can drag the stock lower to ₹450 and ₹440. If Tata Steel manages to sustain above ₹440, a range-bound move between ₹440 and ₹500 is possible. But the stock will come under renewed pressure if it declines decisively below ₹440. In such a scenario, Tata Steel can fall to ₹400.The stock will get breather only if it breaches above ₹495 decisively. A relief rally to ₹510 and ₹520 is possible. But such a strong up-move looks unlikely now.

Today's Pick: NCC (₹86.5): Buy

Investors with a short-term perspective can consider buying the stock of NCC at current levels. The stock jumped 4.5 per cent accompanied by above average volume on Thursday, breaching the 21- and 50-day moving averages. Click here to read the full Today's Pick on NCC .

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