Sensex drops 334 points; Infosys tanks after whistleblower complaint

3.45 pm

Closing bell: Equity indices ended in red in choppy trade on Tuesday, with Infosys tumbling after the company said it was investigating allegations made against its top executive.

Infosys shares dropped over 16%, the most on the NSE index, as country's top software services firm received a complaint alleging “unethical practices” by Chief Executive Officer Salil Parekh.

The company's stock slid as much as 16 per cent, its worst session in over the years, and weighed on the country's IT index which fell as much as 4.81 per cent to hit its lowest level in over four weeks.

At close, the broader NSE index fell 0.62 per cent to 11,589.90, while the benchmark BSE index edged 0.85 per cent lower to 38,963.84.

The Sensex hit an intraday high of 39,426.47 and a low of  38,924.85. Similarly, the Nifty touched an intraday high of 11,714.35 and a low of 11,573.65. The market breadth was positive as 921 shares advanced, against a decline of 889 shares, while 336 shares were unchanged in NSE.

Among NSE sectoral indices, Pharma index gained the most by 1.96 per cent, followed by financial services, private banks, FMCG and PSU Banks. Leading losers pack include IT 4.81 per cent, media, metal and auto.

Top five Sensex gainers were Dr Reddy's, ICICI Bank, BPCL, Titan and Cipla, while the major losers were Infosys, Tata Motors, Bajaj Finserv, Bharti Airtel and HCL Technologies.

2.38 pm

Nifty IT index falls over 4%; Infosys cracks

The Nifty IT index is trading in red in the late afternoon trade except for Wipro.

Baring the stock of Wipro (up 1.71 per cent), other peers like Infosys fell sharply on the impact of whistleblower's allegation (down 15 per cent), HCL Technologies (down 3.82 per cent), Hexaware Technologies (down 2.77 per cent) and TCS (down 0.39 per cent).

Shares of Mindtree (down 1.01 per cent), Just Dial (down 1.14 per cent), Tata Elxsi (down 1.76 per cent) and Tech Mahindra (down 1.93 per cent) too were trading in the red.

At 2.30 pm, the Nifty IT index was trading down 4.56 per cent at 14,706.09.

2.10 pm

Pharma shares trade higher; Piramal Enterprises rises over 9%

The pharmaceutical shares were trading higher in the late afternoon trade on Tuesday.

Shares of Piramal Enterprises (up 9.32 per cent), Dr Reddy's (up 2.80 per cent), Cadila Healthcare (up 2.39 per cent) and Cipla (up 2.06 per cent) were trading higher.

Divis Labs (up 1.59 per cent), Sun Pharma (up 1.10 per cent), Lupin (up 1.05 per cent) and Glenmark (up 0.85 per cent) too were trading in a positive territory.

The Nifty Pharma index was trading 2.19 per cent at 7,775.05, up 2.19 per cent at 2.05 p.m.

1.50 pm

Ultratech Cement: Low volume growth, weak realisations play spoilsport with analysts’ projections

Cement major Ultratech Cement reported Q2 numbers on Monday, with stellar bottomline growth of 72 per cent year-on-year (y-o-y). However, while the quarterly profit of Rs 639 crore was evidently high, it was much lower than analysts’ expectations, despite factoring in a seasonally weak quarter.

Reasons for the deviation could largely be attributed to lower-than-expected volume growth and weak realisations on account of monsoons. Ultratech also saw a 2 per cent y-o-y drop in grey cement volumes (standalone). Read the full Q2 analysis here

1.35 pm

Top gainers at NSE

 

12.38 pm

Lincoln Pharma receives patent for diclofenac rectal spray

Ahmedabad-based Lincoln Pharmaceuticals has informed on Tuesday that it has been awarded a patent for its liquid diclofenac metered-dose rectal spray (diclofenac rectal spray). The patent is valid for 20 years. With the necessary approvals from Drug Controller General of India (DCGI), the company plans to launch the product in the Indian market by January 2020. It is also planning to apply for a global patent.

The company's share is up 6 per cent to trade at Rs 163.50 on NSE.

12.05 am

Nifty call: Tread with caution as the index is testing a critical resistance

In a truncated trading week, the Nifty opened the session lower after moving up in the initial minutes. It tested the critical resistance of 11,700 levels where it faced selling pressure and slid downwards. The index is now trading lower by 0.2 per cent. The Sensex too moved similar to the Nifty and is down by 0.3 per cent. However, Asian indices are showing a positive bias. Nikkei is up by 0.3 per cent and Hang Seng is trading higher by 0.4 per cent. Read more on the technical analysis here

11.50 am

Overall hiring intention of Indian IT employers weakens: survey

Corporate India’s hiring intention for IT professionals for the next two quarters shows a dip of 5 percentage points from what it was in the last six months, as demand for talent with new skill sets for the future is reshaping the tech job market, says a report.

According to the Experis IT Employment Outlook Survey (EITEOS), the overall IT hiring intention of Indian employers for the period between October 2019-March 2020 stood at 47.54 per cent, down from 53.41 per cent in the last six months.

11.30 am

BHEL commissions 800 MW supercritical thermal power plant in Gujarat

Bharat Heavy Electricals Limited (BHEL) has successfully commissioned 1x800 MW Wanakbori Unit 8 Expansion Project in Gujarat.

Located in Kheda district of Gujarat, the project is owned by Gujarat State Electricity Corporation Limited (GSECL), a state-owned power generation company. This 800 MW set is notably the highest rating set of GSECL. Previously, BHEL has set up seven units of 210 MW at Wanakbori, the oldest of which has been in operation for more than 35 years.

BHEL has executed the order for setting up the 800 MW coal-based power plant on Engineering, Procurement, Construction (EPC) basis.

11.25 am

Alembic gets USFDA nod for ointment to treat skin disease

Alembic Pharmaceuticals on Tuesday announced that its joint venture Aleor Dermaceuticals Limited had received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Clobetasol Propionate Topical Solution USP, 0.05 per cent.

This drug is referred for short-term topical treatment of inflammatory and pruritic manifestations of moderate to severe corticosteroid-responsive dermatoses of the scalp.

According to IQVIA, this drug has an estimated market size of US$ 33 million for twelve months ending December 2018.

11.17 am

Asahi Songwon Colors, British firm form JV to build red and yellow pigment plant

Ahmedabad-based blue pigments maker Asahi Songwon Colors Limited has formed a joint venture with Britain’s Tennants Textile Colours Limited (TTC) to build a Red and Yellow pigment plant.

The plant will be located at Dahej, Gujarat for which land has been acquired and the production is slated to start by March, 2021. Read more here

11.02 am

Index outlook: Indices are on a strong footing

Both the Sensex and the Nifty prolonged their up-move amid minor volatility last week. The bellwether indices were boosted by buying interest and short-covering ahead of a long weekend. The key equity indices gained over 3 per cent. Flat crude oil price and gold rate enthused equity investors. Strong Q2 results from the bluechip companies can keep the bullish momentum intact in the coming week. Also, the possibility of a pre-Muhurat rally cannot be ruled out. Read more on the technicals here

10.54 am

Bank strike affects normal operations

Banking services in most public sector banks and private sector banks have been impacted as about four lakh employees owning allegiance to All India Bank Employees’ Association (AIBEA) and Bank Employees Federation of India (BEFI) have gone on a strike.

The unions have given the All India strike call against the Government’s decision to merge 10 public sector banks into four Banks and stopping banking reforms, said CH Venkatachalam, General Secretary, AIBEA. Read more here

10.40 am

Muthoot Finance raises USD 450 million from international bond markets

Muthoot Finance late on Monday announced successful pricing of a USD 450 million fixed-rate senior secured issuance in 144A / Reg S format for a 3-year tenor at 6.125 per cent. MFIN bond transaction marks the first international bond by an NBFC to debut in 144A / Reg S market, allowing it to tap the US investor base in addition to Asia and Europe.

The proceeds will be used for permitted purposes including onward lending as per RBI’s ECB guidelines, says a statement issued by the company.

10.30 am

Atul announces record date for special interim dividend

Atul Limited has informed the stock exchange that it has fixed November 5 as the record date to pay a special interim dividend.

10.26 am

Royal Orchid Hotels launch two new properties

Royal Orchid and Regenta hotels have launched two new properties - a business hotel in Bangalore’s prime Indiranagar area, and a resort in Pench National Park, Madhya Pradesh.

With a portfolio of 55 properties operating in India, the addition of the new Bangalore hotel takes the company’s count of hotels in Bangalore to seven. A boutique 40-key property, the Regenta Inn is located in the prime Indiranagar area, within CBD and close to MG Road. The hotel will serve accommodation requirements from multinational companies in the vicinity and also from Manipal Hospital, which is a hub for international medical tourists.

Regenta Place Aranyaani Resort is located in Pench National Park, at the edge of the forest and just 90 kilometres from Nagpur. The resort features independent villas, each featuring a fireplace, a terrace, an open-air dining area, and multiple sit-out areas with stunning views of the forest.

10.20 am

Four investment picks this Diwali

The past year has been quite torrid for investors, with slowing growth, geo-political tensions and problems in the financial sector taking a toll on almost all asset classes. Since investors may prefer to play it safe with their muhurat investments, we have selected two fixed-income options, one large-cap mutual fund and a gold investment this year. Click here to read the big story

10.15 am

Market update: Equity benchmarks BSE Sensex and NSE Nifty stared on a volatile note on Tuesday as index heavyweight Infosys dampened the rally in energy and banking stocks in early trade.

Shares of Infosys plunged up to 14 per cent after an anonymous group claiming to be employees of the IT major placed a whistleblower complaint to the company’s board, accusing CEO Salil Parekh and CFO Nilanjan Roy of indulging in unethical practices to boost short-term revenue and profits.

After swinging nearly 300 points in early session, the 30-share index was trading 82.38 points, or 0.21 per cent, lower at 39,216 in morning trade.

In similar movement, the broader NSE Nifty fell 2.50 points, or 0.02 per cent, to 11,659.35.

At 10.14 am, the 30-share BSE Sensex is trading 84.36 points or 0.21 per cent lower at 39,214.02, while the Nifty drops 6.65 points or 0.06 per cent to trade at 11,655.20.

Other losers in the Sensex pack included Tata Motors, HCL Tech, Tech Mahindra and Asian Paints, shedding up to 4 per cent.

Among the gainers were Yes Bank, TCS, Bharti Airtel, HUL, ICICI Bank, Hero MotoCorp, HDFC twins, RIL and ITC, rallying up to 7 per cent.

10.09 am

Why the tide that lifts Sensex and Nifty leaves small, mid-cap stocks untouched

Even though there may be nothing fundamentally wrong with a number of small and mid-cap stocks, they continue to be victims of a SEBI norm with regard to restructuring of equity schemes of mutual fund that has killed buying interest in them.

Recent data shows that more than 77 per cent of the total investments by mutual funds and insurance companies is concentrated only in India’s top 50 listed companies (those in the Nifty index). Read more here

9.52 am

Rupee morning call: Watch out for the resistance around 71

The rupee after testing a key resistance on Friday could not appreciate further against the dollar but managed to end the session marginally higher at 71.14. The rupee has now gained for four consecutive trading sessions, building a bullish momentum. The Indian currency might face some downward pressure as 71 is a stiff resistance. Read more on the technicals here

9.45 am

Infosys shares plunge to a 10-month low as whistle-blowers target CEO

Infosys Ltd’s shares plunged to a 10-month low after whistle-blowers accused Chief Executive Officer Salil Parekh of leading an effort to shore up profits through irregular accounting, turning up the heat on an IT services giant that endured internal turmoil just two years ago.

The stock fell as much as 10% early Tuesday, their biggest intra-day fall since August 2017. The letter, addressed to the board, charged Parekh with unethical practices to boost revenues and profit in recent quarters, anonymous whistle-blowers wrote in a memo titled Disturbing unethical practices. The whistle-blowers also said recent big deal wins may have come with negligible margins. They asked the board to investigate and take action, offering to provide emails and voice recordings to support their allegations. Read more here

9.28 am

Infosys shares slump 10% in early trade

Shares of Infoys is trading down 10% on the NSE in an an immediate reaction to the whistleblower allegations,.

Similarly, the American Depository Receipts of Infosys slumped 12 per cent at Nasdaq on Monday. The ADRs ended the day at $9.29, down 12.11 per cent. On Friday, the ADRs closed at $10.57.

 

9.25 am

Day trading guide for October 22, 2019

₹1229 • HDFC Bank

S1S2R1R2COMMENT
1215120012401255Initiate fresh long positions with a fixed stop-loss if the stock moves beyond ₹1,240 levels

 

₹767 • Infosys

S1S2R1R2COMMENT
760752774782Fresh short positions are recommended with a tight stop-loss only if the stock declines below ₹760 levels

 

₹246 • ITC

S1S2R1R2COMMENT
243240249252Initiate fresh long positions with a stiff stop-loss only if the stock of ITC advances above ₹249 levels

 

₹143 • ONGC

S1S2R1R2COMMENT
140137146149Near-term view is bullish for ONGC. Make use of intra-day dips to buy the stock with a fixed stop-loss

 

₹1415 • Reliance Ind.

S1S2R1R2COMMENT
1400138014301445As long as the stock trades above ₹1,400, the near-term stance will remain positive. Buy with a stiff stop-loss

 

₹269 • SBI

S1S2R1R2COMMENT
263255275283Fresh long positions are recommended with a fixed stop-loss only if the stock of SBI moves above ₹275 levels

 

₹2057 • TCS

S1S2R1R2COMMENT
2040202020802100Initiate fresh long positions with a tight stop-loss if the stock of TCS reverses higher from ₹2040 levels

 

11670 • Nifty 50 Futures

S1S2R1R2COMMENT
11620115701172011770Consider initiating fresh long positions with a fixed stop-loss if the contract rebounds up from 11,620 levels

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

9.23 am

Today's Pick: Asahi India Glass (₹203.4) - Buy

Investors with a short-term perspective can buy the stock of Asahi India Glass at current levels.

The stock saw buying interest and gained 5 per cent, accompanied by above-average volume on Friday breaking above a key resistance level at ₹197.

Following a medium-term downtrend, the stock found support at ₹170 in late August. Read more on the technicals here

9:15 am

Opening bell

The Sensex and Nifty opened Tuesday's session in weakly negative territory. The Sensex was at 39,234, down 63 points or 0.16 per cent lower on its previous close.

The NSE Nifty opened at 11,642, down 19 points  or 0.17 per cent lower.

Published on October 22, 2019