Sensex recovers to end flat at 39,031

Closing bell

The benchmark indices recovered from their early lows to end Tuesday's session flat. The Sensex closed at 39,031, representing a loss of 35 points or 0.09 per cent on Friday's close. The NSE Nifty also recovered from its early lows to end little changed at 11,748, down 6 points or 0.06 per cent lower.

The top gainers on the Sensex were HCL Tech, Tata Steel, HDFC Bank, Infosys and Coal India, while the losers were YES Bank, IndusInd Bank, Hero MotoCorp, Maruti and Power Grid.

Among the BSE sectoral indices, the IT, metals and oil and gas sectors were up more than one per cent, while the telecom and realty indices were down more than 2 per cent. The power, auto and banking indices were also down over one per cent.

Oil prices firm as Saudi Arabia says OPEC may extend supply cuts

Oil prices on Tuesday reversed earlier losses after Saudi Arabia said a deal between producers to withhold output that has been in place since January could be extended beyond June to cover all of 2019.

The statements by Saudi energy minister, Khalid Al-Falih, came despite pressure by US President Donald Trump to raise output to make up for a supply shortfall expected from tightening US sanctions against Iran. Click here to read in full the oil markets report .

Yen gains on weak China data; European data eyed

The Japanese yen rallied to a three-week high on Tuesday as disappointing data on Chinese manufacturing undermined risk appetite, with investors waiting for European data to see if that will push currencies out of recent trading ranges. Click here to read in full the global forex markets report .

Banks drag European shares lower

London's FTSE 100 rose 0.7 percent, outperforming European shares. File Photo

European shares fell on Tuesday, weighed down by banks as investors parsed through a mixed bag of earnings, while sentiment remained fragile over growth worries after weak factory data from China clouded modest economic growth numbers from the Eurozone. Click here to read in full the European markets report .

Benchmark indices range-bound

The BSE Sensex and the NSE Nifty were hovering in a range, with losses of 0.30 per cent. The Sensex was quoting at 38,950, down 116 points or 0.30 per cent lower, while the Nifty was at 11,717, with losses at 36 points or 0.31 per cent.

The top gainers on the Sensex were HCL TEch, Infosys, HDFC Bank, Asian Paints and Hindustan Unilever, while the laggards were YES Bank, IndusInd Bank, Hero MotoCorp, VEDL and Maruti.

Zydus Cadila gets USFDA nod to market 2 generic drugs

Drug firm Zydus Cadila on Tuesday said it has received final nod from the USFDA to market generic Bosentan tablets and Trientine Hydrochloride capsules in the US.

The company has received final approval from the US heath regulator to market Bosentan tablets USP in strengths of 62.5 mg and 125 mg and Trientine Hydrochloride capsules USP in the strength of 250 mg, Zydus Cadila said in a statement. “Both products will be manufactured at the group’s formulations manufacturing facility at SEZ, Ahmedabad,” it added. Click here to read in full the report on Zydus Cadila gets USFDA nod for 2 generic drugs .

Cipla gets USFDA nod for pulmonary arterial hypertension drug

Drug major Cipla on Tuesday said it has received final approval from the United States Food and Drug Administration (USFDA) for Ambrisentan tablets, indicated for the treatment of pulmonary arterial hypertension. Click here to read in full the report on USFDA nod for Cipla's hypertension drug .

Glenmark Pharma launches anti-diabetes drug Remogliflozin in India

Drug major Glenmark Pharma on Tuesday announced the launch of its anti-diabetes drug Remogliflozin in India. “Glenmark is the first company in the world to launch the novel SGLT2 inhibitor Remogliflozin and India is the first country to get access to this innovative drug. The drug is indicated in the treatment of type-2 diabetes mellitus in adults,” the company said in a regulatory filing. Click here to read in full the report on launch of Glenmark's diabetes drug .

Sensex, Nifty keep losses at 0.4%

The benchmark indices were trading weak but off their early lows in the afternoon session on Tuesday. The Sensex was trading at 38,918, down 149 points or 0.38 per cent lower, while the Nifty was at 11,707, down 46 points or 0.40 per cent lower.

The top gainers on the Sensex were HCL Tech, Infosys, HDFC Bank, Asian Paints and Tata Steel, while the laggards were YES Bank, IndusInd Bank, Hero MotoCorp, VEDL and Power Grid.

Nifty call: Buy on declines with fixed stop-loss at 11,750 levels

A security guard stands behind a glass facade displaying the CNX Nifty logo at the National Stock Exchange (NSE) in Mumbai, India, on Monday, May 19, 2014. Indian stock-index futures rose and rupee forwards strengthened as benchmark gauges advanced to record highs last week after the main opposition alliance's biggest election win in 30 years. Photographer: Dhiraj Singh/Bloomberg

The Sensex and the Nifty commenced the session in negative territory and began to decline immediately. After a sharp fall, the benchmark indices found support at the intra-day low and have been in a recovery mode.  Click here to read in full the Nifty call report.

Asian shares fall as China manufacturing data disappoints

Shares in Asia fell on Tuesday as readings on China's manufacturing activity failed to meet expectations, underscoring weakness in the world's second-largest economy despite Beijing's attempts to spur growth.

Both official and private business surveys pointed to slower Chinese factory growth this month, dashing hopes for a steady reading or even a faster expansion. Data also showed a slower expansion in its services sector, adding to economic uncertainty. Click here to read in full the Asian share markets report .

Sensex, Nifty off early lows

The benchmark indices recouped half of their morning losses by mid-session on Tuesday. The Sensex was quoting at 38,942, down 125 points or 0.32 per cent lower. The NSE Nifty was at 11,712, down 42 points or 0.36 per cent lower on its previous close.

The top gainers on the Sensex were HCL Tech, Infosys, HDFC Bank, Asian Paints and Tata Steel, while the laggards were YES Bank, IndusInd Bank, Hero MotoCorp, Bharti Airtel and VEDL.

Sun Pharma falls after USFDA observations on its Dadra plant

  Sun Pharma's shares fell nearly 2 per cent on Tuesday. The USFDA on Friday issued Form 483 with 11 observations after inspection of the company's Dadra facility during March 22-29.

An FDA Form 483 is issued to a firm's management at the conclusion of an inspection, when an investigator(s) has observed any conditions that in their judgement may constitute violations of the Food Drug and Cosmetic (FD&C) Act and related Acts.

The company says it has submitted its response to the USFDA within the stipulated timeline.

Reliance Home Finance drops after credit rating cuts

Reliance Home Finance Ltd's shares slumped as much as 20 per cent on Tuesday, their worst day since September 21, 2018.

CARE Ratings has downgraded the company's long-term debt programme, market-linked debt, NCDs to 'C' and long-term debt programme of banking facilities to 'D'.

ICRA has revised the rating to 'A4' from 'A2' for the company's short-term debt programme, citing the slow pace of monetisation of non-core investments (non-financial services businesses), and consequently no improvement in liquidity.

The liquidity profile of the group continues to be under stress on account of a delay in raising funds from the asset monetisation plan and impending debt payments, CARE Ratings said.

'LVB, Indiabulls will benefit significantly from merger'

With the board of Lakshmi Vilas Bank approving the proposed merger with Indiabulls Housing Finance, all eyes are on the RBI to see if the deal passes muster with the regulator. While the deal was proposed at a premium of over 36 per cent to LVB’s stock price on the day of the announcement, the stock price of both companies have fallen 15-19 per cent since then. Is the market jittery about the deal getting the RBI nod and future prospects of the merged entity? Parthasarathi Mukherjee, MD and CEO, Lakshmi Vilas Bank, shares his views with  BusinessLine on some of these concerns. Click here to read more on the merger of LVB and Indiabulls .

Supreme Court sets aside merger of NSEL with 63 moons

The Supreme Court on Tuesday set aside the MCA’s 2016 final merger order of scam-hit National Spot Exchange Ltd (NSEL) with 63 moons technologies. This ruling came from a bench of Justices Rohinton Nariman and Vineet Saran.

The apex court had on April 11 reserved its judgement on a batch of PILs filed by 63 moons, NSEL, Jignesh Shah, some FTIL employees and shareholders. Click here to read in full the report on apex court sets aside merger order of NSEL with 63 moons .

Sensex, Nifty pare early losses

The benchmark indices, the BSE Sensex and the NSE Nifty, pared some early losses by mid-morning. The Sensex was trading at 38,893, down 173 points or 0.44 per cent lower, while the Nifty was at 11,699, down 55 points or 0.47 per cent lower.

The top gainers on the Sensex were HCL Tech, Infosys, Asian Paints, HDFC Bank and Tata Steel, while the laggards were YES Bank, IndusInd Bank, HeroMoto Corp, Maruti and Bharti Airtel. 

Hero MotoCorp falls after March-quarter profit misses target

Shares of Hero MotoCorp Ltd, the country's largest motorcycle maker, fell 3 per cent on Tuesday, their biggest intra-day per cent loss in over two months.

Slowing growth of passenger vehicle sales hurt the company's profit, which missed the consensus for March-quarter profit on Friday.

Two-wheeler demand has weakened post the new insurance norms in September and the cost push from regulatory changes over the next one year will be a further drag for the company, according to CLSA.

The Indian auto industry body said earlier this month, passenger vehicle sales are expected to grow between 3 and 5 per cent in the current FY, after expanding at the slowest pace in five years last year.

CLSA also sees margin headwinds for all two-wheeler makers due to new safety and emission norms, amid weak demand and high competition.

The company's shares have fallen about 16 per cent YTD, as of Friday's close.

Jet staff offer to arrange a billion-dollar bailout

In an attempt to salvage Jet Airways , the company’s employees have put forth a proposal to take control of it by infusing ₹7,000 crore. Under a proposal submitted to SBI, the lead lender, the employees plan to put up capital through stock options worth ₹4,000 crore and another ₹3,000 crore raised from external investors. Click here to read in full the report on Jet staff initiative to arrange billion-dollar bailout .

IL&FS Ethiopia staff move NCLT to recover salary dues

Employees of Infrastructure Leasing & Financial Services Ltd’s (IL&FS) subsidiary in Ethiopia are planning to move the National Company Law Tribunal (NCLT) in a bid to recover their salary dues. About 44 employees working for ITNL-Elsamex SA have not been paid salaries since August 2018. Click here to read in full the report on IL&FS Ethiopia staff move NCLT to recover salary dues .

IndusInd Bank hits 7-week low

Shares of IndusInd Bank fell as much as 7.28 per cent to Rs 1,575.2, their lowest since March 13, 2019.

The stock has broken below its 200-day exponential moving average, which is a bearish sign. The stock has also broken below a support at Rs 1,668, the 23.6 per cent Fibonacci projection level of the downtrend from its August 3, 2018, high to its October 31, 2018 low.

The MACD has turned negative and is below its signal line. The wave pattern suggests the stock is in the third wave of a five-wave downtrend.

In the near term, the stock has support at Rs 1,565.1, the 38.2 per cent projection level.

The stock is down 9.73 per cent in the last one year to Monday's close, while the broader NSE Index has gained 10.71 per cent in the same period.

YES Bank sinks 30% after March quarter loss

Shares of YES Bank Ltd plunged 30 per cent on Tuesday, after the private sector lender posted its first ever quarterly loss last week due to a nine-fold jump in provisions for bad loans.

The banking sector has been struggling with high levels of non-performing assets in recent times, their troubles exacerbated by weak performances in the infrastructure and airline sectors.

The company posted a loss of ₹1,506.64 crore for the quarter ended March 31, while analysts were expecting a profit of ₹1,070 crores. Provisions and contingencies surged to ₹3,362 crore from ₹400 crore a year ago.

YES Bank's stock dived as much as 30 per cent on very high volumes in early trade on Tuesday, it's biggest intraday percentage loss since Sept. 21, 2018.

YES Bank stocks were trading at ₹174.80, at 10:26 am.

Benchmark indices extend losses

The BSE Sensex tanked nearly 300 points in the morning session on Tuesday. It was trading at 38,770, down 297 points or 0.76 per cent lower. The Nifty was also sharply lower at 11,660, down 94 points or 0.80 per cent lower.

The top gainers on the Sensex were HCL Tech, Asian Paints, HDFC Bank, Hindustan Unilever and Infosys, while the losers were YES Bank, IndusInd Bank, Sun Pharma, VEDL and Maruti.

According to reports, the Sensex slipped below the 39,000-mark amid capital outflows by foreign funds and mixed global cues.

However, a strengthening rupee and global crude oil prices restricted further losses in equity markets, brokers said.

On Friday, the Sensex closed 336.47 points, or 0.87 per cent, higher at 39,067.33. The NSE Nifty too ended 112.85 points, or 0.97 per cent, up at 11,754.65.

Domestic equity markets were closed Monday due to elections in Mumbai.

Meanwhile, Chinese manufacturing sector index fell in April to 50.1, compared to 50.5 in the previous month, according to the data released by the National Statistics Bureau.

The US equity indices touched a record high on Monday on strong gross domestic product data, which grew at 3.2 per cent in January-March period this year.

Foreign institutional investors (FIIs) emerged net sellers in the capital markets on Friday, pulling out Rs 70.73 crore, while domestic institutional investors (DIIs) bought shares to the tune of Rs 920.88 crore.

The rupee appreciated by 32 paise to 69.70 against the US dollar in opening trade on Tuesday.

Brent crude futures, the global oil benchmark, fell 0.22 per cent to trade at USD 71.88 per barrel.

Elsewhere in Asia, benchmark equity indices in Tokyo and Seoul were trading lower, while the Shanghai index surged higher. Investors remained cautious over the US Federal Reserve policy decision due on Wednesday.

(with inputs from PTI)

Rupee rises 32 paise in early trade amid easing crude prices

The rupee appreciated by 32 paise to 69.70 against the US dollar in opening trade on Tuesday, amid easing crude prices and weakening of the greenback vis-a-vis some currencies overseas.

The rupee opened strong at 69.83 at the interbank forex market, then gained further ground to touch 69.70 per dollar, displaying gains of 32 paise against the greenback over its previous close. Click here to read in full the domestic forex report.

S&P 500 posts high, extends 2019 rally; Alphabet falls late

The S&P 500 set an intraday record high on Monday, bolstering the view that the decade-long bull market has further to run, after consumer spending rose in March and inflation data was benign. Click here to read in full the US share markets report .

What oil at $100 a barrel would mean for the world economy

Surging crude prices are posing another headwind for the world economy after President Donald Trump’s zero pledge on Iran oil sales.

Brent crude has risen about 33 per cent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects a robust world economy, a shock from constrained supply is a negative. Click here to read in full the report on what oil at $100 a barrel would mean for the global economy .

Australian dollar slips as China data hits risk

The Australian dollar led risk assets lower in Asia on Tuesday after a survey on Chinese manufacturing missed forecasts in a blow to hopes for a rebound in global growth. Click here to read in full the global forex report .

Global shares turn flat as sentiment wanes

Global shares were steady on Monday as a weak euro zone sentiment survey and political uncertainty in the wake of Spain's elections proved a drag on earlier gains driven by strong economic data out of China and the United States. Click here to read in full the global share markets report .

Oil dips on expectations of rising output, China stutter

Oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from US sanctions on Iran, but analysts said markets remained tight. Click here to read in full the global oil markets report .

Asian shares fall as China manufacturing data disappoints

hares in Asia fell on Tuesday as readings on China's manufacturing activity failed to meet expectations, underscoring weakness in the world's second-largest economy despite Beijing's attempts to spur growth. Click here to read in full the Asian share markets report .

Opening bell

The benchmark indices opened the week in the red. In early session on Tuesday, the BSE Sensex was quoting at 39,022, down 44 points or 0.11 per cent lower. The NSE Nifty was trading at 11,736, down 18 points or 0.16 per cent lower.

The markets were closed on Monday for the elections in Mumbai.

Index Outlook: Indices on a roller-coaster ride

After a turbulent week, the Sensex and the Nifty ended on a mixed note. The key benchmark indices are heading towards another rocky patch in the truncated week ahead. Therefore, investors should continue to tread with caution.

On the domestic front, the April auto sales numbers, earnings announcement for the fourth quarter and rupee movement need a close watch in the coming week. Click here to read in full the Index Outlook on indices on a roller-coaster .

Today's Pick: Hexaware Technologies (₹352.1): Buy

Investors with a short-term horizon can consider buying Hexaware Technologies at current levels. Following an intermediate-term downtrend, the stock found support at ₹300 in November 2018. It had recorded a 52-week low at ₹294.8. Subsequently, the stock changed direction, triggered by positive divergence in the daily relative strength index. Since then, the stock has been trending up. Click here to read the Today's Pick on Hexaware Technologies in full.

Weekly trading guide for week beginning April 30, 2019

SBI (₹312.3)

SBI oscillated between ₹303.5 and ₹315.5 all through last week. The near-term outlook is unclear. A key support is at ₹302 and a significant resistance is at ₹315. The stock can remain range-bound between ₹302 and ₹315 for some time. A breakout on either side of ₹302 or ₹315 will decide the direction of the next move. A strong break below ₹302 will bring renewed pressure on the stock. Such a break will drag the stock lower to ₹295 and ₹293 in the near term. A further break below ₹293 will then increase the likelihood of the fall extending to ₹285. On the other hand, if SBI manages to rise past ₹315 in the coming days, the downside pressure will ease. In such a scenario, the stock can move up to ₹320-₹321 — the next crucial resistance zone. Inability to breach ₹321 can trigger a pull-back move to ₹315 again. But a strong break and a decisive close above ₹321 will boost the bullish momentum and take SBI higher to ₹330-335 levels again. Traders can stay out of the market until a clear trend emerges.

ITC (₹304.65)

ITC was volatile last week. It fell to a low of ₹298.7 initially and reversed sharply higher from there to make a high of ₹309.7 before coming off from there again to close the week on a flat note. The weekly candlestick reflects indecisiveness. A key support is at ₹303. A break below it can take the stock lower to ₹299 — the 21-day moving average support which halted the fall last week. A bounce from there can take ITC higher to ₹305-310 levels again. In such a scenario, the stock can trade sideways between ₹299 and ₹310 for some time. But if ITC declines below ₹299, there is a strong likelihood of it falling to ₹294. A further fall below ₹294 looks unlikely now. On the other hand, the level of ₹310 has been capping the upside over the last two weeks. ITC has to breach the key level of ₹313 decisively to gain fresh bullish momentum. Such a break can take the stock higher to ₹322. A further break above ₹322 will then increase the likelihood of the stock revisiting ₹350 levels over the medium term.

Infosys (₹737.1)

Infosys snapped its two-week fall and reversed higher last week. The stock was up about 3 per cent. The 21-week moving average support at ₹719 has held well and triggered a reversal. Charts suggest a sideways move between ₹705 and ₹775. An intermediate resistance within this range is at ₹741. A strong break above it can take Infosys higher to ₹770 and ₹775 - the upper end of the range. On the other hand, inability to break above ₹741 can drag the stock lower to ₹715 and ₹710. A breakout on either side of ₹705 or ₹775 will decide the direction of the next move. A break below ₹705 can drag the stock initially lower to ₹699. A bounce from ₹699 can trigger a corrective rally to ₹710 and ₹715. But a further break below ₹699 will increase the downside pressure. Such a break will see Infosys tumbling to ₹680 or even lower levels thereafter. However, if Infosys manages to break the range above ₹775, the uptrend will remain intact. Such a break can take the stock higher to ₹785-790.

RIL (₹1,391.45)

RIL inched higher for the second consecutive week. But the stock seems to lack strength. However, the bias remains bullish on the charts. Key supports are at ₹1,359 and ₹1,355, which are likely to limit the downside. A fall below ₹1,355 looks less probable now. As long as the stock remains above these supports, the outlook will be positive. It will also keep the possibility high of the stock breaking above the psychological level of ₹1,400. A break above ₹1,400 will boost the momentum and trigger a fresh rally to ₹1,470. The bullish outlook will get negated if RIL declines below ₹1,355. A break below ₹1,355 can take the stock lower to ₹1,330 and ₹1,320. In such a scenario, RIL can remain range-bound between ₹1,320 and ₹1,400. Traders with a medium-term perspective can make use of dips to go long at ₹1,380 and accumulate at ₹1,370 and ₹1,360. Stop-loss can be placed at ₹1,340 for the target of ₹1,460. Revise the stop-loss higher to ₹1,395 as soon as the stock moves up to ₹1,405.

Tata Steel (₹545)

Tata Steel tumbled over 6 per cent intra-week and made a low of ₹509. However, the stock clawed-back sharply on Friday, recovering the loss and closed marginally higher for the week. The support around ₹510 has held well. Cluster of supports is poised in the ₹540-530 range, which can limit the downside in the near term. As long as the stock trades above this support zone, a rise to ₹560 is possible. Inability to breach ₹560 can drag the stock to ₹540 and ₹530. But a decisive close above ₹560 will boost the bullish momentum and will increase the likelihood of the stock surging to ₹600. The indicator on the chart is positive. The 55-DMA is on the verge of crossing over the 100-DMA. This is a bullish signal, indicating that the downside could be limited. The possibility is high of Tata Steel breaching ₹560 and targeting ₹600.

The writer is a Chief Research Analyst at Kshitij Consultancy Services

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