Markets Live: Sensex falls 156 points on Karnataka political crisis

Nifty declines to 10,741; Oil & gas, PSU stocks plunge

4.05 pm

Benchmark indices ended lower on Wednesday, as uncertainties around the composition of the next government in Karnataka dampened investor sentiment.

BJP leaders B S Yeddyurappa, H N Ananth Kumar, Muralidhar Rao and Shobha Karandlaje met Governor Vajubhai Vala at Rajbhavan in Bengaluru on May 15.   -  Special Arrangement

 

Also, weak macroeconomic data dampened domestic sentiment.

 

The benchmark BSE index closed down by 156.06 points or 0.44 percent at 35,387.88. The broader NSE index ended lower by 60.75 points or 0.56 per cent at 10,741.1.

Index for state-run banks ended 3.05 per cent lower, dragged by Punjab National Bank and Syndicate Bank Ltd, which closed down 12.04 per cent and 12.45 per cent, respectively.

 

Punjab National Bank on Tuesday had reported a record quarterly loss of Rs 13,417 crore ($1.98 billion) with analysts worried about the bank's growth prospects, while Syndicate Bank posted a loss of Rs 2,195 crore compared with a profit of Rs 104 crore last year.

 

3.55 pm

MCX Nickel hovers below a crucial resistance

As long as the contract trades below ₹1,000, there is a strong likelihood of it falling to ₹950 or ₹945 in the coming days. The region around ₹945 is a strong support which is likely to limit the downside. Read more

 

3.50 pm

Jaiprakash Associates asked to deposit Rs 1,000 cr

The Supreme Court today asked Jaiprakash Associates to deposit an additional Rs 1,000 crore with its Registry by June 15 for ensuring refund of money to hassled home buyers. Read more

 

3.45 pm

Pulses import falls 1mt

Import of pulses declined by nearly one million tonne in 2017-18 financial year on record output, helping the country save Rs 9,775 crore in foreign exchange.  Click here to read more

Pulses’ prices skyrocketed to over Rs 200/kg in retail market in mid 2016. File Photo   -  The Hindu

 

3.35 pm

P-note investment drop to 9-year low

Total investments via participatory notes (P-notes) into Indian capital markets plunged to a 9-year low of Rs 1 lakh crore in April amid stringent norms put in place by the Securities and Exchange Board of India to check the misuse of these instruments. Read more

 

3.20 pm

Benchmark indices continued to trade lower as doubts over the composition of the next government in Karnataka dampened investor risk appetite.

The Sensex was down 140.42 points or 0.4 per cent at 35,403.52 and the Nifty down 55.4 points or 0.51 per cent at 10,746.45.

3.10 pm

RCom shares nosedive

Shares of Reliance Communications tumbled 20.5 per cent a day after NCLT admitted an insolvency petition filed by Ericsson against the company and two of its subsidiaries. Read more

 

3 pm

PE investments jump 23%

Private equity and venture capital investments in April were up 23 per cent at $2.4 billion, backed by large deals in sectors like e-commerce and life sciences. Read more

 

2.50 pm

 

2.40 pm

Lupin - Multiple challenges for the US business

Lupin’s US business is likely to remain under pressure in the near term due to continued tough pricing environment in most products in the US generics market, lack of meaningful high-value launches and slow ramp-up of GAVIS, its US subsidiary.  Click here to read more

 

2.25 pm

Karnataka political developments

Jockeying for power has begun in Karnataka after the fractured verdict in the Assembly polls, with contenders BJP and JD(S)-Congress combine today intensifying efforts to outmanoeuvre each other in the race for forming the government. Click here to read more

BJP leaders B S Yeddyurappa, H N Ananth Kumar, Muralidhar Rao and Shobha Karandlaje met Governor Vajubhai Vala at Rajbhavan in Bengaluru on May 15.   -  Special Arrangement

 

2.15 pm

 

2 pm

Benchmark indices continued to trade lower as doubts over the composition of the next government in Karnataka dampened investor risk appetite.

The Sensex was down 123.41 points or 0.35 per cent at 35,420.53 and the Nifty down 40.45 points or 0.37 per cent at 10,761.40.

Prime Minister Narendra Modi's Bharatiya Janata Party won 104 seats, falling marginally short of the 113 seats needed to form a government, while the Opposition Congress clinched 78.

 

The Congress said it was ready to let regional party Janata Dal (Secular), which stood third with 37 seats, to form a government to stop the Hindu nationalist BJP from taking power.

However, analysts say the outcome of Karnataka's election results only strengthens the BJP's re-election prospects in 2019, something the markets will be optimistic about.

“Markets are at very high levels and hence very volatile, so every event will be met with overreaction,” said Sudhakar Pattabiraman, head of research operations at William O'Neil's MarketSmith.

“Because of a few state elections coming up this year, expect markets to remain volatile but in the long term, things look extremely positive. There are strong indications that BJP will win the 2019 general elections.”

Domestic sentiment was also hit as the country's trade deficit widened to $13.72 billion in April from $13.25 billion a year ago.

 

1.45 pm

Glenmark Pharmaceuticals Europe Ltd has launched a generic version of Seretide Accuhaler, used to treat asthma, in Denmark. The company shares were trading up by 2.06 per cent at Rs 516.70. Read more

 

1.35 pm

Granules India today said that the US health regulator has issued the Establishment Inspection Report after completing the audit of its Telangana facility. Shares of Granules India were trading up by 2.43 per cent at Rs 96.95. Read more

 

1.25 pm

Binani Industries, which holds 98.4 per cent share in debt ridden Binani Cement, today offered to clear the 100 per cent claims of creditors at the National Company Law Appellate Tribunal. Read more

 

1.10 pm

The Sensex recovered from intraday low of 35,241.63 owing to political developments in Karnataka.

BJP’s Karnataka unit chief B S Yeddyurappa today met the Governor Vajubhai Vala, and asked him to allow him to take oath as chief minister as the party had emerged the single largest party.

BJP leaders B S Yeddyurappa, H N Ananth Kumar, Muralidhar Rao and Shobha Karandlaje met Governor Vajubhai Vala at Rajbhavan in Bengaluru on May 15.   -  Special Arrangement

 

The Sensex was trading down by 38.87 points or 0.11 per cent at 35,505.07 and the Nifty down 24.8 points or 0.23 per cent at 10,77.05.

Top five Sensex gainers were HUL, Wipro, YES Bank, Tata Motors and IndusInd Bank, while the major losers were Hero MotoCorp, ICICI Bank, Adani Ports, Reliance and L&T.

 

1 pm

Yeddyurappa meets Governor

BJP’s Karnataka unit chief B S Yeddyurappa today met Governor Vajubhai Vala and asked him to allow him to take oath as chief minister as the party had emerged the single largest party. Click here to read more

BJP leaders B S Yeddyurappa, H N Ananth Kumar, Muralidhar Rao and Shobha Karandlaje met Governor Vajubhai Vala at Rajbhavan in Bengaluru on May 15.   -  Special Arrangement

 

12.50 pm

Credit Suisse 'underweight' on Indian equities

The global financial services major in its strategy report said the MSCI India index has fallen by the least as against Indonesia and the Philippines. Read more

12.40 pm

 

12.30 pm

Nifty 50 May Futures (10,748)

Short-term traders with high risk appetite can go short on rallies at 10,765 and at 10,780. Stop-loss can be placed at 10,805 for the target of 10,705. Click here to read more

 

12.20 pm

NSEL-63 moons merger case

The Supreme Court has extended the status quo on the existing stay of the merger of National Spot Exchange with 63 moons technologies Ltd till the next hearing on August 29. More on this

12.10 pm

 

12.05 pm

What to watch

ITC, Hindalco and JSW Steel are among over 60 companies that will declare their results today. Read more

Click here to view the BSE

11.55 am

RInfra board okays rights issue

Anil Ambani-led Reliance Infrastructure has received its board of directors’ approval to raise ₹3,000 crore, either through a rights issue or a QIP issue. The company shares were trading up 0.48 per cent at Rs 388 on the BSE. Read more

 

11.45 am

BJP legislature party meet

The newly elected Bharatiya Janata Party legislature party is to meet to choose a leader and stake its claim to form a government. Click here to read more

 

11.35 am

 

11.30 am

The Sensex was trading down 167.82 points or 0.47 per cent at 35,376.12 and the Nifty down 57.5 points or 0.53 per cent at 10,744.35.

Weak global cues, political crisis in Karnataka and weak macroeconomic data dampened the investor sentiment.

 

Top five Sensex gainers were Wipro, IndusInd Bank, Kotak Bank, HUL and YES Bank, while the major losers were ICICI Bank, Hero MotoCorp, SBI, Reliance and ONGC.

11.15 am

Dollar hovers near 5-month high

The dollar hovered near a five-month high against a group of major currencies, as a surge in the benchmark 10-year Treasury yield above 3 per cent reignited a rally that had lost steam last week. Click here to read more

 

11.05 am

Asian markets

Asian stock markets dipped after Pyongyang abruptly called off talks with Seoul, throwing a US-North Korean summit into doubt, while surging bond yields revived worries about faster U.S. interest rate hikes that could curb global demand.

 

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent as Pyongyang's move appeared to mark a break in months of warming ties between North and South Korea and with Washington. Click here to read more

 

10.55 am

 

10.45 am

Nifty gainers, losers

NSE sectoral indices

 

10.30 am

Sensex gainers, losers

BSE sectoral indices

 

10.20 am

Benchmark indices plunged 0.7 per cent in the morning trade due to weak global cues and prevailing uncertainty over government formation in Karnataka. Also, weak macroeconomic data dampened the domestic sentiment.

The 30-share BSE index Sensex was trading down 236.93 points or 0.67 per cent at 35,307.01 and the 50-share NSE index Nifty down 82.4 points or 0.76 per cent at 10,719.45.

Karnataka elections

The hair’s breadth distance between the BJP and a simple majority in the Karnataka Assembly on Tuesday prompted the Congress to join forces with the Janata Dal (Secular), a manoeuvre inviting counter-claims and assertions of victory by Prime Minister Narendra Modi and BJP President Amit Shah.

Yesterday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government.

Global markets were stumped after North Korea cancelled high-level talks with Seoul and threatened to call off the much anticipated summit with the US if it was pushed into unilaterally giving up its nuclear arsenal.

Back home, trade deficit widened to $13.7 billion in April, which further affected the trading sentiment.

Also, the first month of the current financial year has brought some bad news on the inflation front with both retail and producer inflation showing a surge raising the possibility of a policy rate hike by the Reserve Bank in the near future.

 

9.55 am

Deep Industries has received a letter of award from Vedanta for providing a workover rig for a primary period of three years. The company shares were trading down 1.49 per cent at Rs 149 on the BSE. Read more

 

9.50 am

Upstox charts 3-pronged strategy  for growth

Upstox (formerly RKSV Securities), an online discount brokerage company, is working out a three-pronged strategy to maintain its exponential growth momentum and boost revenues. More on this

 

9.40 am

Investors factor in a 'Modi win in 2019'

Global investors have priced in a “Modi win in 2019”, and the government may consider various stimulus options to support the rural economy in the run-up to Lok Sabha elections next year. Click here to read more

Prime Minister Narendra Modi addressing a public rally.   -  K. Murali Kumar

 

9.25 am

‘Nifty likely to fetch 18% returns this fiscal’

The recent volatility in the stock market and economic uncertainty that could rear its head in the run-up to the General Election next year, have made many new investors sit back and take a relook at their mutual fund investments. Click here to read more

 

9.15 am

The Sensex opened lower by 91.59 points at 35,452.35 against 35,543.94 and the Nifty down 55.25 points at 10,746.60 against 10,801.85 as uncertainty prevailed over government formation in Karnataka.

The hair’s breadth distance between the BJP and a simple majority in the Karnataka assembly on Tuesday prompted the Congress to join forces with the Janata Dal (Secular), a manoeuvre inviting counter-claims and assertions of victory by Prime Minister Narendra Modi and BJP President Amit Shah. Read more

9.10 am

Day Trading Guide

₹2039 • HDFC Bank

S1

S2

R1

R2

COMMENT

2030

2020

2052

2063

Fresh short positions can be initiated with a stiff stop-loss only if the stock declines below ₹2030 levels

 

₹1192 • Infosys

S1

S2

R1

R2

COMMENT

1180

1167

1200

1210

Consider initiating fresh long positions with a fixed stop-loss if the stock moves above ₹1200 levels

 

₹281 • ITC

S1

S2

R1

R2

COMMENT

279

276

285

287

Make use of intra-day rallies to initiate fresh short positions while maintaining a tight stop-loss at ₹285 levels

 

 

Click here to view the full guide

 

9.05 am

Today's stock pick

SPARC (₹377.1): Sell

Investors with a short-term view can sell the stock of Sun Pharma Advanced Research Company (SPARC) at current levels. Since encountering a key resistance at around ₹525 in early January, the stock has been in a medium-term downtrend. Read more

 

Published on May 16, 2018

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