Sensex ends down 80 points at 36,644, Tata Motors drives up over 7%

Closing bell

The benchmark indices, the BSE Sensex and the NSE Nifty, closed mixed on Thursday. The Sensex was down 80 points or 0.22 per cent at 36,644, while the Nifty was marginally firmer at 10,847, representing a gain of 3 points.

The top gainers in the Sensex pack were Tata Motors, which drove up over 7 per cent, ONGC (up 5.17 per cent), YES Bank (4.12 per cent), NTPC (3.26 per cent) and Maruti (2.41 per cent). The laggards were HDFC (down 2.67 per cent), ICICI Bank (2.16 per cent), TCS (1.35 per cent), HCL Tech (1.26 per cent) and Kotak Bank (down 1.23 per cent).

The majority of sectoral indices on the 30-share benchmark closed firm, with the exception of realty, which dropped 1.77 per cent and finance and banking (down 0.99 and 0.91 per cent respectively).

The auto, utilities, metal and oil and gas indices spurted over 2 per cent, while healthcare, industrials and power gained over 1 per cent each during the session.

Yen plunges, yuan jumps on US-China trade hopes

Pound holds gains as no-deal Brexit fears ebb.

The Japanese yen slipped and risky currencies flourished on Thursday as investors turned more optimistic that the US will find common ground with China on trade after agreeing to hold talks in October.

Chinese representatives will travel to Washington next month, China's Commerce Ministry said on Thursday. Click here to read in full the global forex markets report .

Oil slips towards $60 on rise in US inventories

US crude stocks rose last week. File Photo

Oil slipped towards $60 a barrel on Thursday after a report showed US crude inventories rose unexpectedly, although hopes of progress in resolving the US-China trade row lent support.

The American Petroleum Institute (API), an industry group, on Wednesday said US crude stockpiles rose by 400,000 barrels last week, while analysts had expected a fall. The government's official supply report is due out later on Thursday.

Benchmark Brent crude was down 25 cents at $60.45 a barrel by 0821 GMT, while US West Texas Intermediate (WTI) crude fell 39 cents to $55.87. Click here to read in full the oil markets report .

Sensex, Nifty trade in the red

The benchmark indices, the BSE Sensex and the NSE Nifty, traded in the red ahead of the close on Thursday. The Sensex was at 36,612, down 111 points or 0.25 per cent lower, while the Nifty was at 10,840, down 4 points or 0.04 per cent.

The top gainers on the Sensex were Tata Motors, up over 7 per cent, followed by ONGC (up 5.25 per cent), YES Bank (3.87 per cent), NTPC (3.39 per cent) and Maruti (2.22 per cent). The laggards were HDFC (2.63 per cent), ICICI Bank (2.15 per cent), TCS (1.35 per cent), HCL Tech (1.11 per cent) and Kotak Bank (1.09 per cent).

European stocks hit one-month highs on trade optimism

The pan-European STOXX 600 index was up 0.1 per cent.

European shares rose for a second straight day on Thursday, after China said it would hold trade talks with the US, raising hopes that the two countries will make progress on a dispute that has put major economies at risk of recession.

China's Commerce Ministry said its trade team will consult with their US counterparts in mid-September in preparation for negotiations in early October, and both sides agreed to take actions to create favourable conditions. Click here to read in full the European markets report .

PNB board approves amalgamation with OBC, United Bank

The board of Punjab National Bank (PNB) has given in-principle approval for the amalgamation of Oriental Bank of Commerce and United Bank of India with PNB.

The board meeting held on Thursday followed the Finance Ministry asking the three banks to consider the proposal of amalgamation, PNB said in a regulatory filing.

The Alternative Mechanism headed by the Finance Minister after consultation with Reserve Bank of India has given the go-ahead for the amalgamation. Click here to read in full the report on PNB board approves amalgamation of OBC, United Bank .

Nifty call: Go long on rally above 10,900, with a fixed stop-loss

28/05/2019 MUMBAI: The new breand identity for Nifty Indices launch at the National Stock Exchange in Mumbai on May 28, 2019. Photo By. Paul Noronha

Taking cues from the positive global markets, the Sensex and Nifty began the session in the green, opening with a gap-up. The US markets surged at the close, gaining over 1 per cent in the last session. The Nikkei 225 has advanced 2 per cent to 21,085 levels. The Hang Seng index is hovering in the negative, declining 0.4 per cent to 26,407 in today's session.

After an initial rally, both the Sensex and the Nifty failed to sustain the positive momentum and have slipped into the red, witnessing selling pressure. The Sensex is down by 0.27 per cent, while the Nifty is trading flat. However, the market breadth of the Nifty is biased towards advances. The India VIX volatility index is hovering flat at 17.2 levels.  Click here to read in full the Nifty call report .

Gadkari assures automobile sector of govt assistance, export incentives

Transport Minister Nitin Gadkari

The government on Thursday said the automobile industry will get as much help as possible, including incentives, to increase exports.

Speaking at the 59th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM), Nitin Gadkari, Minister of Road Transport and Highways, also said the government does not have any plans to ban sales of Internal Combustion Engine (ICE) vehicles.

"As far as the present economic data is concerned, the automobile sector is facing a slowdown...because of global economy, because of demand and supply...the government is with the automobile sector at this hour," he said. Click here to read the report on government assurance to automobile sector.

Sensex, Nifty drop into the red

The benchmark indices, the Sensex and the Nifty, which opened the session in positive territory, dropped into the red at mid-session on Thursday.

The Sensex was quoting at 36,612, down 112 points or 0.31 per cent lower on its overnight close, while the Nifty was at 10,832, down 12 points or 0.11 per cent lower.

The top gainers on the Sensex were Tata Motors (up 5.61 per cent), ONGC (5.12 per cent), NTPC (2.97 per cent), M&M (2.22 per cent) and Maruti (2.13 per cent). The laggards were HDFC (down 2.51 per cent), ICICI Bank (1.75 per cent), Hindustan Lever (1.43 per cent), HCL Tech (1.21 per cent) and Kotak Bank (1.12 per cent lower).

The oil and gas and metal sector shares were the top gainers on the 30-share benchmark, rising over 2 per cent during the session. The utilities, auto, power, basic materials and energy sector shares also propped up the index, rising between 1-1.5 per cent. On the other hand, realty, banking and finance sector shares weighed on the index, dropping between 0.5-1.2 per cent.

US, China to hold trade talks in October

US and China will hold a key meeting in October.

China and the United States agreed to hold high-level trade talks in early October in Washington, China's commerce ministry said on Thursday, amid fears that an escalating trade war could trigger a global economic recession.

The announcement followed a call earlier in the day between China's Vice Premier Liu He and US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin, the Ministry of Commerce said in a statement on its website. China's central bank governor Yi Gang was also on the call. “Both sides agreed that they should work together and take practical actions to create good conditions for consultations,” the ministry said. Click here to read in full the report on US, China trade talks in October .

Confirmation of US-China trade talks lifts Asian shares, investor spirits

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.08 per cent at its highest since August 2, while the Shanghai composite index surged 1.7 per cent. Japan's Nikkei added 2.4 per cent. File Photo

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the US in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy. Click here to read in full the Asian markets report .

Tax cut on hybrid vehicles under consideration: Gadkari

Transport Minister Nitin Gadkari

India is considering a cut in the goods and services tax (GST) rate on hybrid vehicles, Transport Minister Nitin Gadkari said on Thursday.

The government's plan comes as the auto sector battles with a steep drop in sales due to feeble consumer demand, with several top automakers and component manufacuturers cutting production and laying off employees. _ Reuters

India raises import tax on Malaysian refined palm oil by 5%

India has raised the tax on refined palm oil from Malaysia to 50 per cent from 45 per cent for six months to curb imports and boost local refining.

The world's biggest edible oil importer currently imposes a 40 per cent import tax on crude palm oil and 50 per cent on refined palm oils. But since January, shipments of refined palm oils from Malaysia have been taxed at 45 per cent, under an agreement with Malaysia. Click here to read in full the report on India raises import tax on Malaysian refined palm oil .

Aditya Birla Capital’s fund-raising plans eyed

The board of directors of Aditya Birla Capital will meet on Thursday to consider approval for raising of funds by way of preferential allotment, QIP or by any other method.

Shareholders will closely monitor the pricing and other details of the company’s plans to raise funds through the issue. Besides, the board of Urja Global will also meet on Thursday to consider an issue of green bonds of up to $500 million for financing renewable energy projects/e-vehicles.

Pound at week-high, dollar sinks as risk-on mood cautiously holds

Pound holds gains as no-deal Brexit fears ebb.

The British pound hovered around a one-week high on Thursday as another parliamentary defeat for Prime Minister Boris Johnson made investors optimistic that a no-deal Brexit could be avoided, while a broader risk-on mood held back the dollar.

The dollar fell against most major currencies, though gained on the safe-haven yen, as the UK parliamentary vote, positive economic data in the United States and China and hopes for a de-escalation in Hong Kong's political crisis lured investors to riskier assets. Click here to read in full the global forex report .

Oil prices rise after US confirms trade talks with China to start

US crude stocks rose last week. File Photo

Oil prices rose on Thursday, rebounding from earlier losses, after the US confirmed that talks with China to reach a trade agreement would be held in the coming weeks, giving hope that a dispute that has roiled global economies will be resolved.

The gains add to a surge in prices on Wednesday that had been driven by a survey showing activity in China's services sector expanded at the fastest pace in three months in August, as new orders rose in the world's second-biggest consumer of oil.

Brent crude was up 21 cents, or 0.4 per cent, at $60.91 a barrel by 0301 GMT. On Wednesday, Brent rose 4.2 per cent. West Texas Intermediate (WTI) was up 17 cents, or 0.3 per cent, at $56.43 a barrel, having risen 4.3 per cent the previous session, the biggest percentage gain in nearly two months. Click here to read in full the global oil markets report .

Rupee rises 27 paise to 71.85 against $ in early trade

At the interbank foreign exchange, the rupee opened at 71.12.

The rupee appreciated by 27 paise to 71.85 against the US dollar in early trade on Thursday as gains in the domestic equity market enthused investors.

At the interbank foreign exchange market, the rupee opened at 71.87, then gained further ground and touched a high of 71.85, registering a rise of 27 paise over its previous close. Click here to read in full the rupee report .

Sensex, Nifty hold firm

The Sensex and Nifty traded on a firm note in early session on Thursday. The Sensex held gains of 114 points or 0.31 per cent at 36,839, while the Nifty was trading at 10,906, up 61 points or 0.57 per cent higher.

The top gainers in the Sensex pack were ONGC, which shot up nearly 8 per cent, NTPC, up nearly 7 per cent, Tata Motors (3.11 per cent), Vedanta (3.07 per cent) and Tata Steel (2.95 per cent). The laggards were HDFC (down 2.40 per cent), ICICI Bank (1.27 per cent), Hindustan Unilever (1.06 per cent), Bharti Airtel (0.46 per cent) and Tech Mahindra (0.41 per cent).

An agency report attributed the jump in the BSE benchmark to gains in oil and gas, power and metal stocks, amid positive cues from global markets.

In the previous session on Wednesday, the BSE barometer ended 161.83 points, or 0.44 per cent, higher at 36,724.74, while the Nifty settled the day with 46.75 points, or 0.43 per cent, gains at 10,844.65.

According to the reports, market sentiment was enthused by a rally in global equities following a slew of positive developments on US-China trade, Hong Kong crisis and Brexit.

Asian markets extended gains after Hong Kong’s leader Carrie Lam withdrew a controversial extradition bill that had sparked three months of protests in the financial hub.

In the UK, British members of Parliament moved closer to passing a law preventing a no-deal Brexit.

Adding to the positive sentiment, on Thursday morning, China announced it would resume trade talks with the US in Washington next month.

Bourses in Shanghai, Hong Kong, Japan and Korea were trading significantly higher in their respective late morning sessions. On Wall Street, stock exchanges too ended in the green on Wednesday.

The rupee, meanwhile, appreciated 18 paise against its previous close to trade at 71.94 in early session.

Global oil benchmark Brent crude was trading 0.05 per cent lower at 60.67 per barrel.

On Wednesday, foreign portfolio investors had sold shares worth a net of Rs 1,738.49 crore, while domestic institutional investors purchased shares worth Rs 1,304.58 crore, provisional data showed. (with inputs from PTI)

How a SEBI circular on ‘unpaid shares’ could lead to heavy market selling

Small and mid-cap stocks worth thousands of crores that are lying with the stock brokers because clients have not paid full amount for purchasing them, could come for selling in the market as a consequence of a recent SEBI circular.

SEBI has said that with effect from November 1, brokers will not be able to keep ‘unpaid shares’ in various accounts or even pledge them. Click here to read in full the report on how a SEBI circular on 'unpaid shares' could lead to heavy selling.

Confirmation of US-China trade talks buoys Asian shares, investor spirits

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.08 per cent at its highest since August 2, while the Shanghai composite index surged 1.7 per cent. Japan's Nikkei added 2.4 per cent. File Photo

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.8 per cent, while the Shanghai composite index surged 1.8 per cent. Japan's Nikkei added 2.4 per cent. US stock futures reversed early losses and rose 1 per cent. The Chinese yuan jumped versus the dollar in offshore trade, while safe-have assets such as gold and the yen fell. Click here to read in full the Asian markets report .

RBI asks banks to link interest rates to external benchmark

Home and auto loans could get cheaper in the festival season. In a bid to address concerns over the transmission of rate cuts, the RBI has made it mandatory for banks to link all new floating rate loans with an external benchmark from October 1.

The new rule will be applicable to floating rate loans to retail, personal and MSME borrowers but banks are free to offer such external benchmark-linked loans to other types of borrowers as well. Click here to read in full the report on RBI asks banks to link interest rates to external benchmark .

LIC has lost ₹17,000 crore in PSBs in a year; mergers could worsen erosion

LIC, that has seen its investment in IDBI Bank (classified as a private bank now) erode by more than half over the past year or so, has also seen the value of its investments in other PSU banks plunge. The sharp fall in the price of PSU bank stocks and dilution of its stake owing to capital infusion by the government, has eroded its wealth in these banks. LIC has lost over Rs 17,000 crore of its wealth in PSBs over the past year. Excluding IDBI Bank, it has lost over ₹4,800 crore in other PSBs.

The  Centre’s big bank merger move  would only hurt the insurer more in the coming months. A sharp 20-30 per cent dilution in the book value of the merged entities — PNB, Canara Bank, Union Bank and Indian Bank — over the next year or so, will lead to LIC’s value of holdings in PSU Banks erode further. Click here to read in full the report on LIC loses ₹17,000 crore in PSBs in a year .

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened Thursday's session in the green. The Sensex was quoting at 36,883, up 159 points or 0.43 per cent higher, while the Nifty was at 10,900, up 56 points or 0.52 per cent firmer.

Day Trading Guide for September 5, 2019

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹2247 • HDFC Bank

₹821 • Infosys

₹243 • ITC

₹119 • ONGC

₹1201 • Reliance Ind.

₹274 • SBI

₹2246 • TCS

10886 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick: Gujarat Alkalies and Chemicals (₹421): Buy

Investors with a short-term perspective can consider buying the stock of Gujarat Alkalies and Chemicals at current levels. The stock jumped 7 per cent accompanied by good volume on Wednesday, breaking above a key near-term resistance level at ₹412 and the 21-day moving average.

Following a medium-term downtrend from the late May 2019 high of ₹595, the stock found support at ₹376, recording a 52-week low in late August this year. Triggered by positive divergence in the daily relative strength index and the price rate of change indicator, the stock changed direction in late August. The stock, thereafter, began to trend upwards and is in a near-term up-move. Click here to read in full Today's Pick on Gujarat Alkalies .