Sensex, Nifty slip 1.70% on global equity sell-off

The market is pricing in double-digit earnings growth over the next few years PAUL NORONHA PAUL NORONHA

Closing Bell

Stock market indices plunged over 1.50 per cent today taking cues from weak Asian markets. Equity indices across Asia including Topix, Nikkei, Hang Seng and Shanghai are down now by 1-2 per cent.

Crash in Argentine Peso and eventual global stock market rout triggered sell-off in Indian equities and the rupee. The domestic currency reached 71 levels and touched a low of 71.30 today amid strengthening of dollar against other global currencies.

After opening higher at 37,755.16, the Sensex steadily fell later to an intraday low of 36,888.49, before settling at 36,943.27, down by 638.64 points from its previous close.

The NSE Nifty, which opened higher at 11,139.40, fell to a low of 10,901.60, and finally ended at 10,925.85, down by 183.80 points from its previous close.

Sectoral indices such as Banking, FMCG, Financial Services, Media and Metal lost between 1 and 2.50 per cent. Auto index was the worst performer today on the back of heavy selling pressure in auto stocks. The Nifty Auto index lost nearly 4% at 6,855.75 following a slowdown in the sector growth.

 

 

 

 

Nifty Bank Index

 

Nifty Auto index

 

 

3.25 pm

Rupee hits six-month low of 71.25, What next?

The Indian rupee hit a six month-low today, amid rising geopolitical tensions across the globe. Crash in Argentine Peso and eventual stock market rout, reported increase in bad loans in the Chinese banking system, inverting German yield curve, non-ending protests in Hong Kong and recent devaluation of Yuan below multi-year low of 7 by China has triggered a fresh round of sell off in equities and emerging market currencies, as investors chase safe haven assets like gold, yen and the greenback.

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3.10 pm

Auto stocks slide as July sales see worst drop since Dec 2000

The shares of automobile companies fell sharply on Tuesday after trade body data showed passenger vehicle sales in July recorded their worst percentage fall since December 2000.

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Nifty Auto stocks

 

3 pm

 

2.45 pm

Bosch hits near 5-year low after Q1 profit fall

The shares of Boschdropped as much as 4.1 per cent to ₹13,700 , their lowest since August 19, 2014.

The technology and services supplier company had reported a 35 per cent drop in June-quarter profit to ₹280 crore ($39.32 million)

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Bosch Q4 net falls 5% to Rs. 412 crore

Dip temporary, says auto components maker; bets on turnaround despite tough environment

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Bosch invests €31 million in Bidadi facility

Invests 31 million euros for facility expansion

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2.20 pm

Why the stock of YES Bank has fallen over the past week?

After YES Bank announced the opening of its qualified institutional placement (QIP) issue last week (August 8), the stock which has been under immense pressure over the past year, started to fall once again. While the fund raising will help the bank enhance its capital adequacy ratio, which has been weak, the market did not seem too pleased.

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Yes Bank opens QIP issue, fixes floor price at Rs 87.90 per share

Yes Bank, on Thursday, announced the opening of the qualified institutional placement (QIP) issue at a floor price of Rs 87.9 per equity share.The ...

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Moody’s keeps YES Bank ratings under review for downgrade

Global rating agency Moody’s, on Monday, kept YES Bank’s ratings under review for a downgrade, noting that the private sector lender has more than ...

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2.20 pm

BSE SECTORAL INDICES

 

 

2.10 pm

Top Gainers on BSE

 

 

 

1.50 pm

GAIL rises for the third straight session

 

GAIL (India) Ltd shares went up today in contrast to the overall weak market. The GAIL stock is being quoted at Rs 128.30, up 3.60% on the NSE. The stock is down 32.78% in last one year as compared to a 3.3% slide in NIFTY and a 4.63% slide in the Nifty Energy index.

Q1 results: GAIL’s profit after tax up by 15 per cent

GAIL’s PAT was Rs 1,288 crore in the first quarter of 2019-20

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1.35 pm

 

Sensex stocks

 

 

1.30 pm

Delivery based trades drop to five year low

There has not been much action on the volumes front in equity bourses in the last few months. Data from NSE shows that the lacklustre volumes in bourses could be explained by the absence of long-term investors in the market.

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1.10 pm

Nifty Call: Go short on a fall below 11,050

Nifty 50 August Futures (11,055)

Taking cues from the weak global markets, the Sensex and the Nifty began the session on a flat note and immediately slipped in to negative territory. After an initial corrective up-move the key benchmark indices continued to trend downwards.

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12.40 pm

 

Sensex stocks

 

 

12.35 pm

‘GST is no longer a dampener for the housing sector’

Sundaram BNP Paribas Home Finance (Sundaram Home) plans to consolidate its presence in the southern market, even as it enters new market segments this fiscal. In an interaction with BusinessLine, Srinivas Acharya, Managing Director, spoke about the policy measures, recovery in demand, and affordable housing segment. Edited excerpts:

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Sundaram Finance’s insurance, mutual fund subsidiaries post robust growth in FY18

Home finance unit takes a hit but sees modest growth in FY19

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12.30 pm

NEW 52-WEEK HIGH STOCKS

New 52-Week High Stocks

 

 

12.20 pm

Praj Industries inks pact with Brazilian ethanol maker Dedini

Brazil sugar-ethanol mill maker Dedini IndŴstrias de Base said on Monday it has signed a cooperation agreement with India's Praj Industries to sell equipment for ethanol production, including technologies for corn-based biofuel.

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Praj Industries (₹127.3): Buy

The stock of Praj Industries gained 8.5 per cent accompanied by above average volume on Tuesday, after taking support from a significant long-term ...

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12.05 pm

 

 

11.50 am

Gold prices soar. Should you invest?

The yellow metal that was dead as an investment for almost a decade is back. With increasing uneasiness over the trade war and the rate cut fever spreading, thrilling times are ahead for gold investors.

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Gold prices hold firm on trade, growth concerns

Gold prices held steady in holiday-thin trade on Monday, holding near the key $1,500 pivot, as uncertainties around US-China trade war and concerns ...

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Gold gains sheen on high risk-aversion

But traders are advised caution as the up-move has been very fast and sharp

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11.20 am

Broker's call

 

Elara Capital

Nestle: ACCUMULATE

CMP : Rs 12,150

Target Price : Rs 12,700

Penetration and premium innovation drives growth

Key highlights announced in the annual invesor meeting of the company: 1) the past four quarters have seen market growth of NEST categories ($5.4bn in CY18) reduced from 15.2% to 10.5% indicating moderation, 2) volume (1HCY19: +9.7% YoY) led by chocolates, up 23% YoY and prepared dishes, up 13% YoY, also was backed by secondary sales. The milk & nutrition business has seen acceleration (1HCY19: 8.1% YoY) for the fourth year due to NAN. 3) growth was led by penetration increase and it has targets of expanding total reach to 5.5 million outlets, up 22% in the next three years, and 4) strategy will be to drive penetration in rural markets (25% of sales) through competitively priced premium products and short-term margin will be foregone if needed to keep prices at affordable and attractive levels.

Premium products growing at 20%

Premium products (11.7% of sales) grew at 21% YoY, 2x faster than the company’s overall growth as it is competitively launching new products at a slight markup to the base portfolio. Brand investment was up 18.5% YoY to 7.8% of sales in 1HCY19, led by a host of innovations (61 launches since 2016); the pace of innovation has accelerated as time to innovate has been reduced by 50% to 3-9 months and it has one launch per month currently.

The eCommerce channel has become 1.5% of sales, up 56% YoY, and is leveraging the consumer base for sampling new products, such as  Nesplus breakfast cereals. New products contribute around 3.7% of sales.

Gross margin could be under pressure in CY19

In line with the strategy adopted for driving penetration, the company will do residual pricing to pass on inflation, up 2.2% in 1HCY19 and 4.0% in 2HCY19, only to the extent that is not offset by internal cost savings, up 80bp in 1HCY19, led by lower freight, power & fuel & other operating cost and mix improvement, up 80bp in 1HCY19, to be competitive and drive premiumization in rural markets.

Gross margin could shrink by 200bp in CY19E to 57.3%  if it does not take any hike in milk & nutrition, +5% YoY needed. We currently assume 58.3% for CY19E, which could get tested.

Valuation: We reiterate Accumulate with a target price of Rs 12,700

Our top pick remains Nestle in the FMCG segment, as it derives 75% of sales from the urban markets and growth in tier II & III cities has actually accelerated through focus sales efforts like tele-calling.

Nestle to invest ₹700 crore to set up factory in Sanand

Maggi noodles plant will be firm’s 9th in the country

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Nestle India shares rose by over 3 per cent after June-quarter earnings

It had earlier reported an increase of 10.83 per cent in net profit to Rs 437.84 crore for the second quarter ended June 30

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With Friskies, Nestle hopes to lap up growing demand for cat-food products

The pet food arm of Nestle SA, is looking to bring its global cat food brand Friskies to India

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11.05 am

Future Perfect: Consider a put option on Sun TV

The outlook remains weak for the stock of Sun TV Network (₹448.4). The stock rules at a crucial level and finds major support at ₹438.

A close below that level can drag the stock towards ₹371 or even ₹341. It finds resistance at ₹491, and only a close above ₹537 will clear the immediate negative outlook for the stock. The downtrend is expected to continue

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Stocks in the media segment ended mixed on Monday. Among the gainers, Sun TV surged 1.91 per cent to close at Rs. 599.55 on the BSE B Jothi Ramalingam

 

11 am

 

 

10.55 am

Rupee falls 32 paise; touches 71 level against US dollar

 

The rupee deprecated by 38 paise and fell to 71 against the dollar in early trade on Tuesday amid strengthening of the American currency and weak opening in domestic equities.

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The rupee opened strong at 68.76 at the interbank forex market then gained further ground to touch 68.73 per dollar

 

 

10.45 am

Gold imports up 35.5% during April-June

The country’s gold imports, which have a bearing on the current account deficit (CAD), increased by 35.5 per cent to USD 11.45 billion (about ₹80,000 crore) during April-June quarter of the current fiscal, according to commerce ministry data.

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The returns in Indian gold prices has outpaced the returns from equity markets this year.   -  Reuters

Gold prices soar. Should you invest?

The yellow metal that was dead as an investment for almost a decade is back. With increasing uneasiness over the trade war and the rate cut fever ...

Read More  

Gold prices hold firm on trade, growth concerns

Gold prices held steady in holiday-thin trade on Monday, holding near the key $1,500 pivot, as uncertainties around US-China trade war and concerns ...

Read More

 

10.40 am

₹130 • ONGC: Initiate long positions if stock rallies above Rs 134 levels

 

S1S2R1R2COMMENT
128125134137Fresh long positions are recommended with a tight stop-loss only if the stock of ONGC rallies above ₹134 levels

 

ONGC seeks shareholder nod to help OPAL raise ₹2,680 cr

The board of Oil and Natural Gas Corporation (ONGC) has offered to help ONGC Petro Additions Ltd (OPAL) raise debt resources of ₹2,680 crore.“OPAL has ...

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ONGC hires six oil drilling jack-up rigs

State-owned Oil and Natural Gas Corporation Ltd (ONGC) last week hired six oil drilling jack-up rigs– two each from Shelf Drilling and Foresight ...

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10.30 am

Early Session

Domestic equity benchmark BSE Sensex dropped nearly 150 points in early trade on Tuesday, dragged by losses in index heavyweights HDFC twins, Infosys and ITC, amid weak global cues.

Shares of Reliance Industries (RIL), however, capped the losses on the index by rallying over 8 per cent.

The 30-share index was trading 56.06 points or 0.15 per cent down at 37,525.96 at 1030 hours; and the broader Nifty fell 21.45 points or 0.19 per cent to 11,088.90.

In the previous session on Friday, the 30-share index settled 254.55 points or 0.68 per cent higher at 37,581.91. The broader NSE Nifty jumped 77.20 points or 0.70 per cent to 11,109.65.

Financial markets were closed on Monday on account of Bakri Id.

Top losers in the Sensex pack during early trade included NTPC, Bharti Airtel, M&M, HDFC, HDFC Bank, Maruti, Tech Mhaindra, Infosys, PowerGrid, L&T and ITC, cracking up to 4.45 per cent.

On the other hand, RIL rallied to become the biggest gainer, after Mukesh Ambani on Monday announced plans to sell stakes in the firm’s oil and chemicals business to Saudi oil giant Aramco and in fuel retail network to BP plc for Rs 1.15 lakh crore, and said its telecom unit Jio will begin offering fibre-based broadband services from next month.

 

 

10.25 am

All you wanted to know about repo-linked deposit and lending rates

 

As everyone cheered the 35-basis point repo rate cut in last week’s monetary policy meeting, were you wondering why such cuts never seem to trickle down to you?

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10.20 am

Nifty Next 50 Losers

Nifty Next 50 Losers

 

10.20 am

Nifty Next 50 Gainers

Nifty Next 50 Gainers

 

10.15 am

 

10.10 am

 

₹2245 • TCS: Sell if the stock fails to move beyond Rs 2,265 levels

 

 

 

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COMMENT

2225220022652285

 

Consider initiating fresh short positions with a tight stop-loss only if the stock fails to move beyond ₹2,265 levels

 

10.05 am

Top Losers in Nifty 50

Nifty 50 Top Losers

 

10 am

Top Gainers in Nifty 50

 

Nifty 50 Top Gainers

 

9.55 am

RIL surges over 8% on Aramco deal

 

Reliance Industries soared the most in more than two years after billionaire Mukesh Ambani revealed a plan to sell a stake to Aramco as part of efforts to pare debt that piled after racking up $76 billion in capital expenditure in the last five years.

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BL21RELIANCE-IND-PG1   -  Bloomberg

 

9.50 am

Catholic Syrian Bank files draft papers for IPO with SEBI

 

Kerala-based Catholic Syrian Bank has filed draft prospectus for initial public offer with markets regulator SEBI. Through the offer, the private sector lender is looking to raise fresh capital by issuing shares worth ₹30 crore apart from an offer for sale of 1.98 cr ore shares by existing shareholders.

 

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9.45 am

₹291 • SBI: Sell the stock if falls below Rs 285 levels

 

 

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S2

 

R1

 

R2

 

COMMENT

285280297304

 

Fresh short positions can be initiated with a stiff stop-loss only if the stock of SBI falls below ₹285 levels

 

SBI reports lower bad loans, but higher slippages and write-offs are a concern

In a sign of continuing stress, the bank’s special mention accounts book had also risen

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SBI chief hopes for a dip in bad loans ...

State Bank of India (SBI) on Friday reported a standalone net profit of ₹2,312 crore in the first quarter ended June 30, 2019, compared to a net loss ...

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9.40 am

 

9.30 am

₹790 • Infosys: Go long if reverses higher from Rs 783 levels

 

 

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COMMENT

 

783

 

776

 

796

 

802

 

Fresh long positions can be initiated with a stiff stop-loss if the stock reverses higher from ₹783 levels

 

Infosys: Back in business (Hold)

Big deals and digital growth have lifted the stock. But margin pressure could weigh on the stock

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9.25 am

11122 • Nifty 50 Futures: Buy if the contract bounces up from 11,075 levels

 

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11075

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11225

 

Fresh long positions can be initiated with a tight stop-loss if the contract bounces up from 11,075 levels

 

READ MORE

9.20 am

Risky to be overly bearish on crude oil

 

In recent days, crude oil prices have come under intense downward pressure. This is attributed to renewed concerns over global growth and demand. Escalating trade war between the US and China is also weighing on the energy market.

READ MORE

 

Oil prices edge down as traders weigh slowing demand against supply curbs

Oil prices edged lower on Tuesday, offsetting narrow gains in the previous session, on the expectation major producers would continue to reduce ...

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US crude stocks fall by 3.4 million bbls last week. File Photo   -  Reuters

 

 

9.15 am

Opening Session

 

Stock market indices fell in the opening session. After opening higher at 37,755.16, the Sensex immediately fell to 37,441.80, down by 140.16 points from its previous close.

The NSE Nifty, which opened higher at 11,139.40, fell to 11,073.05, down by 36.50 points from its previous close.

Sectoral indices such as Auto, Banking, IT  were seen trading lower by over 1 per cent in early trades.

 

 

9.05 am

Today's Pick: KEI Industries (₹488.9): Buy

 

The stock KEI Industries was on highlight last week and had jumped 16 per cent. This rally underpins the long-term uptrend of the stock. Investors with a short-term perspective can buy it at current levels. Since the stock took support at ₹248 in October 2018, it has been in an intermediate-term uptrend. But, after recording a new high at ₹532 in May this year, the stock was on a corrective medium-term downtrend until last week.

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9 am

Asian stocks tumble as Hong Kong unrest, Argentine peso crash unnerve investors

 

Asian shares slumped on Tuesday as fears about a drawn out Sino-U.S. trade war, protests in Hong Kong and a crash in Argentina's peso currency drove investors to safe harbours like bonds, gold, and the Japanese yen.

MSCI's broadest index of Asia-Pacific shares outside Japan skidded 1 per cent.

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Published on August 13, 2019