Closing Bell: The benchmark Sensex tumbled over 500 points at close on Monday dragged by losses in financial stocks amid weak cues from global markets and persistent foreign fund outflow.

After touching a low of 32,923.74, the 30-share index closed 552.09 points lower, or 1.63 per cent,  at 33,228.80.

Similarly, NSE Nifty dropped 159.20 points, or 1.60 per cent, to end at 9,813.70.

Among the sectoral indices, private banks dragged the Nifty Bank lower, and the index ended with losses of 3.59 per cent. Nifty Realty was the other sectoral index which ended with losses of 3.01 per cent.

The other significant losers were Nifty Auto, FMCG and Metals indices ranging from 1.5 to 2 per cent.

The market breadth was negative, with 948 stocks declining against the advance of 877 shares.

New pipeline tariff, authorisation policy to push for higher share of gas in energy basket

In a bid to raise the share of natural gas in the energy basket, India will soon have a new tariff policy that will help bring down the cost of transporting the environment friendly fuel.

Also, oil regulator PNGRB is working on a new regime for authorisation of gas pipelines that will make it more investor friendly.

Speaking at the launch of nation’s maiden online gas trading platform by IGX, both Oil Minister Dharmendra Pradhan and regulator PNGRB Chairman Dinesh Kumar Sarraf spoke of a new pipeline tariff policy that will replace existing practice of seven different pipeline operators charging separate rates and customers away from gas source paying more than those nearer to source.

Markets @ 3.05 pm: The benchmark NSE index recovered from the day's low 9,726.35 to trade at 9,794.25 (-1.79 per cent).

The Nifty Bank index was trading down 3.40 per cent at 19,951.64. The Midcap is trading lower 1.07 per cent and smallcap index inches up to trade in green at 0.32 per cent.

The India Volatility index is up 5.8 per cent to 32.62.

The Nifty IT and PSU Bank shares pare losses to trade with gains. The PSU Bank index gained over 1.69 per cent.

Among the major losers were Nifty FMCG, Auto and Realty indices. 

Rupee settles 19 paise lower at 76.03 against US dollar

The rupee depreciated 19 paise and closed below the 76 per dollar mark on Monday as weak domestic equities and sustained foreign fund outflows weighed on investor sentiment.

Forex traders said risk appetite has waned amid fresh cases of Covid-19 globally.

The rupee opened weak at 75.93 at the interbank forex market. It fell further and finally settled for the day at 76.03 against the US dollar, down 19 paise over its last close.

It had settled at 75.84 against the US dollar on Friday.

BHEL shares tank over 6 per cent on Q4 earnings disappointment

Shares of engineering firm BHEL on Monday tanked over 6 per cent after the company reported a consolidated net loss of ₹1,532.18 crore for the March quarter.

The stock plunged 6.05 per cent to ₹29.50 on the NSE.

BHEL on Saturday reported a consolidated net loss of ₹1,532.18 crore for the March quarter, mainly due to lower revenues and deferred tax. The company had posted a consolidated net profit of ₹680.77 crore in the quarter ended March 2019, it said in a BSE filing.

WPI inflation falls 3.21 per cent in May

iving first formal proof of Covid-19 pandemic impact on factories, the Government on Monday reported rate of inflation based on Wholesale Price Index (WPI) at minus 3.21 per cent in May as against positive 0.42 per cent in March.

Issuing authority of WPI, Economic Advisor in the Department for Promotion of Industry and Internal Trade (DPIIT) said that due to limited information available for the month of April, the figure for May has been compared with March. Rate of inflation based on WPI shows whether producers are getting a better price or not.

European shares open weak

European shares slide on fears of second wave of coronavirus cases with Beijing reporting new infections.

The pan-European index fell 2.5% with basic resources and travel leading the losses down almost 4%.

In terms of single stocks, BP is down 5% after it said it will incur an up to $17.5 billion writedown in the value of its assets.

But on a positive note, Bunzl jumped 8.5% as it forecast an increase in revenue for the first half of the year, while shares at biopharmaceutical company Ucb jumped 10%.

Sun Pharma, Hikma ink exclusive pact for plaque psoriasis drug for MENA region

Drug major Sun Pharma on Monday said it has entered into an exclusive licensing and distribution agreement with Hikma Pharmaceuticals for plaque psoriasis medicine, Ilumya, for the Middle East and North Africa (MENA) region.

One of the company’s wholly-owned subsidiaries and Hikma Pharmaceuticals have entered into the agreement for Ilumya, Sun Pharma said in a filing to BSE.

RIL's rights break new record

In a dull market, the partly paid up shares of Reliance Industries Ltd (RIL) listed at a sharp premium of around 100 per cent based on the amount received by the company so far on the shares. The listing of these shares was on the back of the company's ₹53,000 crore rights issue, which is India’s largest primary market fund mop-up so far in capital markets. No rights issue has received such a response for its sheer size. Read more here

Tyre shares trade with gains as government imposes curbs on import

The shares of tyre manufacturing companies are trading in gains today as BusinessLine reported earlier of Commerce Ministry’s decision to impose restrictions on tyre imports.

To promote domestic manufacturing, the government has imposed curbs on import of new pneumatic tyres used in cars, buses, lorries and motorcycles by amending the import policy from “free to restricted” through a DGFT notification.

Raising concern over the increasing imports from China, domestic tyre manufacturers have been demanding such restrictions for a long time.

Shares of JK Tyre gained as much as 10 per cent before cooling off to trade higher at 5.36 per cent, snapping the losing streak. CEAT has increased as much as 2 per cent to Rs 948, Apollo Tyres up 1.36 per cent and, MRF trading unchanged at Rs 63,483.

Nifty call: Sell on rallies with stop-loss at 9,780

Equity markets across Asia are under pressure, and as a result, the Indian market is feeling the heat. The benchmark indices of India, i.e. the Nifty spot and the Sensex spot indices, which opened with a gap-down have been heading south since the session open. Click here to read more

Tata Steel remains above key base

Last week, after opening with a gap-up, the stock of Tata Steel fell throughout the week as bulls gave up quickly. But on Friday, it witnessed a sharp reversal on the back of the support band between ₹300 and ₹305 — its 23.6 per cent Fibonacci retracement level of the previous downtrend.

The stock can retain its bullish bias as long as it trades above ₹300. The daily relative strength index was weighed down last week by the depreciating stock price. Though it moved down, the indicator remains above the mid-point level of 50 — a bullish indication. Read more

RIL bounces off a crucial support

The stock of Reliance Industries opened the week higher, registering a fresh lifetime high of ₹1,618.4 on Monday. But it was unable to keep the momentum and the stock later declined throughout the week.

On Friday though, the scrip found support at the important level of ₹1,500 and rallied sharply, recouping its intra-week loses and ending the week on a flat note. The 21-day moving average coincides at ₹1,500, making it a significant support. Until the price stays above that level, the outlook can be bullish. But there are signs warranting caution. Read more

Infosys in a consolidation range

The stock of Infosys dipped last week and slipped below the key level of ₹700. It is an important support as the 21-day moving average coincides at that price point.

But the stock seems to be charting a sideways trend between ₹650 and ₹725 and unless it moves out of the range, the next leg of trend will remain uncertain. As the stock weakened last week, the daily relative strength index declined in tandem, and it now hovers around the neutral region. Read more

ITC likely to move sideways

The stock of ITC, which was trading flat during the first half of the past week, witnessed volatility towards the end of the week. The stock weakened and ended the week with a loss of 3 per cent. It registered an intra-week low of ₹187.8 on Friday, before closing at ₹193.9. Read more here

SBI moderates after facing a hurdle

The stock of SBI opened with a gap-up last week at ₹197 versus its previous close of ₹187.8. Unable to hold on to the gain, the stock began to fall. It managed to close above the support of ₹175. The price remains above both the 21- and 50-day moving averages. Read more here

Sirca Paints forays into hand cleanser and surface disinfectants segment

Sirca Paints, a high-end, Italian wood coatings brand announces its foray into 'hand cleanser' and 'surface disinfectants' under the brand 'Sirca'.

To serve the growing demand for sanitisation products, the company has decided to launch them next week and received a license to manufacture recently.

These will be manufactured at the Sonipat facility with no additional investments and almost an intersecting raw material basket.

Daily Rupee call: INR bearish below 76

The rupee (INR), which ended last week with a loss of 0.3 per cent against the dollar (USD), has opened on the back-foot today. The local currency has begun today’s session at 75.94 versus last week’s close of 75.84. It is now hovering around the vital level of 76.

On the back of the support at 76, if the domestic unit appreciates from current levels, it is likely to face hindrance at 75.8 and 75.6. But if it breaches the support at 76, it might witness substantial selling pressure. Support levels below 76 are at 76.3 and 76.5. Read more on the technicals here

Rupee opening: The Rupee slipped 11 paise to 75.95 against US dollar in early trade on Monday.

Trading pick of the week: Buy LIC Housing Finance

The stock of LIC Housing Finance gained 3.3 per cent on Friday, decisively surpassing a key immediate resistance at around ₹260. This rally has strengthened the short- as well as the medium-tem uptrend of the stock. Read more here

We got Covid impact signals in January: Hindalco chief

Hindalco Industries , an Aditya Birla Group company, had surprised the markets by closing a $2.8-billion deal to acquire global speciality aluminium company Aleris amid economic uncertainty. Group Chairman Kumar Mangalam Birla addressed over 6,000 employees of Aleris and Novelis over MS Teams as the integration of both companies began over the unprecedented economic lockdown. In an interview with  BusinessLine , Satish Pai, Managing Director, Hindalco Industries, expressed confidence that the company would overcome the challenges, given its integrated operations and tight cost control. Excepts:

Wipro launches digital inspection solution

Wipro Limited, a leading global information technology, consulting and business process services company, on Monday, announced the launch of its Digital Inspection Solution for improved workplace safety and experience. Powered by IBM’s integrated workplace management system, TRIRIGA, the solution complements the company’s existing EngineeringNXT portfolio in the digital transformation of business operations.

The shares of the company are trading at Rs 211.80 up 1.88 per cent in the morning trade.

We have the resources to tide over this crisis, says Kavinder Singh of Mahindra Holidays and Resorts

The hospitality sector has been among the worst affected by the Covid-19 lockdowns, with revenues nearly drying up and most fixed costs continuing. Kavinder Singh, Managing Director & CEO, of Mahindra Holidays and Resorts India, the largest vacation ownership company in the country, tells us about the impact on the company and how it is navigating the challenges. Read the edited excerpt here

Markets Update: Equity benchmark Sensex tumbled over 300 points in early trade on Monday dragged by losses in financial stocks amid weak cues from global markets and persistent foreign fund outflow.

After touching a low of 33,384.75, at 10.07 am, the 30-share index was trading 385.15 points, or 1.14 per cent, lower at 33,395.74.

Similarly, NSE Nifty dropped 101.55 points, or 1.02 per cent, to 9,871.35.

IndusInd Bank was the top laggard in the Sensex pack, tumbling around 4 per cent, followed by Tata Steel, Bajaj Finance, ICICI Bank, Axis Bank, NTPC, SBI, HDFC Bank and SBI.

On the other hand, Sun Pharma, Infosys, Nestle India and Asian Paints were among the gainers.

FII DATA: The foreign institutional investors on a net basis sold equities worth Rs 1,311.49 crore in the capital market on Friday, provisional exchange data showed.

How Hero MotoCorp is well-placed to ride out the storm

Automobile sales, which have been going downhill since the second half of 2018-19, suffered a double whammy due to the Covid-19 outbreak. Being a discretionary consumption item, new vehicle sales may not recover in a hurry. Nevertheless, there are pockets of opportunity.

Preference to personal mobility with a view to maintaining social distance is one. Expectations of better rural demand  vis-à-vis  urban is another. Click here to read more on the recommendation

Aarti Industries announces termination of contract; shares down over 2%

Aarti Industries has formed on Monday that it received a termination notice from a customer with which it had entered into a long-term contrat.

The 10-year contract was to supply a high-value agrochemical intermediary with application to herbicides.

The order was expected to generate a revenue of Rs 4,000 crore over the 10-year period, the company said in its filing to the stock exchange.

The compensation the company is likely to receive on termination notice is expected to be in the range of USD 120-130 million.

Shares fell as much as 2 per cent to Rs 897.90 and are down for the third straight day.

Fuel prices hiked 9th day in a row

Petrol price on Monday was hiked by 48 paise per litre and diesel by 23 paise a litre as oil companies for the ninth day in a row adjusted retail rates in line with costs since ending an 82-day hiatus in rate revision.

Petrol price in Delhi was hiked to Rs 76.26 per litre from Rs 75.78, while diesel rates were increased to Rs 74.26 a litre from Rs 74.03, according to a price notification of state oil marketing companies.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

This is the ninth daily increase in rates in a row since oil companies on June 7 restarted revising prices in line with costs, after ending an 82-day hiatus.

Future perfect: Consider short strangle on Bajaj Finance

The long-term outlook remains negative for Bajaj Finance, as long as it remains below ₹2,932. The stock finds immediate resistance at ₹2,550 and the next one at ₹2,746. On the other hand, Bajaj Finance faces direct support at ₹ 2,313 and the next one at ₹ 2,172. A close below ₹2,002 will trigger a fresh downfall on the stock. However, we expect Bajaj Finance to move in a narrow range between ₹2,150 and ₹2,750.

Opening Bell: The benchmark indices, Sensex and Nifty, opened on a mute note on Monday tracking global peers. The Sensex was quoted at 33,564.39, down 216.50 points or 0.64 per cent. The Nifty was down 62.75 points or 0.63 per cent at 9,910.15.

Index Outlook: Indices hover at trend-deciding levels

The domestic equity indices, the Sensex and the Nifty, were volatile in the past week, tracking global markets that declined on hawkish comments from US Federal Reserve Chairman Jerome Powell.

This week, the global markets could remain choppy, which will keep the local indices also under pressure. Investors should tread with caution as the benchmark indices are trading at crucial trend-deciding levels. Read more on the technicals here

Oil prices drop as rising US coronavirus cases stoke fears of weak fuel demand

Oil prices fell on Monday, with US oil dropping more than 2 per cent, as a spike in new coronavirus cases in the United States raised concerns over a second wave of the virus which would weigh on the pace of fuel demand recovery.

Brent crude futures fell 66 cents, or 1.7per cent, at $38.07 a barrel as of 0016 GMT, while US West Texas Intermediate (WTI) crude futures fell 81 cents, or 2.2per cent, to $35.45 a barrel. Read more here

Asian stocks, oil fall as second wave fears grow

Asian shares stumbled on Monday and oil prices slipped as fears of a second wave of coronavirus infections in Beijing sent investors scurrying for safe-havens while underwhelming data from China further weighed on sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3% with Australian shares off 0.1% and South Korea easing 0.3%. Japan's Nikkei faltered 0.7%.

Chinese shares opened in the red with the blue-chip CSI300 index down 0.1%.

Monday's losses follow a strong rally in global equities since late March, fuelled by central bank and fiscal stimulus and optimism as countries gradually lifted restrictions put in place to curb the spread of the novel coronavirus.

Published on June 15, 2020