Benchmark indices finish firm, Sensex up 161 points at close

Closing bell

The benchmark indices ended Wednesday's session with gains of 0.4 per cent.

The Sensex finished at 36,724, up 161 points or 0.44 per cent firmer, while the Nifty ended at 10,844, up 46 points or 0.43 per cent higher.

The top gainers on the Sensex were Bharti Airtel, which rose nearly 3 per cent, followed by Tata Steel (up 2.85 per cent), SBI (2.35 per cent), Vedanta (2.24 per cent) and NTPC (up 1.79 per cent).

The laggards on the 30-share index were Maruti, which dropped 4.09 per cent, Sun Pharma (down 3.15 per cent), Tata Motors (2.62 per cent), Asian Paints (2.52 per cent) and IndusInd Bank (down 2.17 per cent).

Among the sectoral indices on the BSE, the telecom and metal indices gained over 1.5 per cent during the day, while the auto index lost 1.74 per cent, the consumer durables index dropped 1.31 per cent and the consumer discretionary goods & services sector fell 0.92 per cent.

European stocks surge

The pan-European STOXX 600 index rose 0.7 per cent. File Photo

European shares rallied to one-month highs on Wednesday, as political developments in Italy and Britain eased investors' nerves, while hopes that Hong Kong would withdraw the extradition bill at the heart of months of protests helped Asia-focused companies.

British lawmakers defeated Boris Johnson in parliament on Tuesday in a bid to prevent him from taking Britain out of the EU without a divorce agreement, prompting the prime minister to announce that he would immediately push for a snap election. Click here to read in full the European markets report .

Dollar extends decline after disappointing factory data

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The dollar extended its fall on Wednesday following disappointing manufacturing data, helping the euro to recover from more than two-year lows.

Sterling also rallied, recovering some of Tuesday's losses after the latest parliamentary attempt to stop a no-deal Brexit.

The dollar's pull-back was prompted by manufacturing activity in the world's biggest economy contracting for the first time in three years last month, data from the Institute for Supply Management published on Tuesday showed. Click here to read in full the global forex markets report .

Sensex, Nifty edge up

The benchmark indices, the Sensex and the Nifty, edged up in afternoon trade on Wednesday.

The Sensex was at 36,662, up 99 points or 0.27 per cent higher, while the Nifty traded at 10,821, up 23 points or 0.22 per cent higher.

The top gainers in the Sensex pack were HDFC Bank, Bharti Airtel, SBI, Vedanta and Tata Steel, while the laggards were Sun Pharma, Maruti, Tata Motors, Asian Paints and M&M.

Among the sectoral indices on the 30-share benchmark, the telecom index gained 1.50 per cent, followed by the metal index which gained 1.24 per cent, banking 0.93 per cent, finance 0.78 per cent and capital goods 0.64 per cent.

The auto sector shares were major losers, dropping 1.68 per cent, followed by consumer durables which was down 1.47 per cent and consumer discretionary goods falling 1.02 per cent.

Oil prices nudge higher, but economic worries loom

Oil prices are down for nearly two straight months.

Oil prices recovered some ground on Wednesday, boosted by a wider market pick-up on positive news from China's services sector, having touched their lowest in close to a month during the previous session on fears over the weakening global economy.

Brent crude was up 31 cents, or 0.53 per cent, at $58.57 a barrel by 0619 GMT, while US West Texas Intermediate futures gained 34 cents, or 0.63 per cent, at $54.28 a barrel. Click here to read in full the oil markets report .

Nifty call: Buy on dips with stop-loss at 10,850 levels

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

The Sensex and the Nifty began the session on a flat note. The Asian markets are trading mixed; the Nikkei 225 is flat at 20,649, while the Hang Seng index has jumped 3.7 per cent to 26,477 levels in today's session. After moving sideways in a narrow range, the Sensex and the Nifty have begun to trend upwards. Click here to read in full the Nifty call report .

Maruti to halt production at Haryana plants for two days

The country’s largest carmaker  Maruti Suzuki India  (MSI) on Wednesday said that it has decided to suspend production at its Gurugram and Manesar plants in Haryana for two days.

The company said it will halt manufacturing operations at the two manufacturing facilities on September 7 and 9. “Both days will be observed as no production days,” MSI said in a statement. Click here to read in full the report on Maruti halts production at Haryana plants for two days .

Centre to invest ₹25,000 cr in fisheries in 3-5 years

As part of the ambitious Blue Revolution project, the Union government has lined up ₹25,000 crore to invest in different segments of the fisheries sector in the next three to five years. Click here to read in full the report on Centre to invest Rs 25,000 cr in fisheries .

Equity indices recover to trade in green

The Sensex and Nifty reversed their early losses to trade in the green at mid-session on Wednesday.

The Sensex was trading at 36,592, up 29 points or 0.08 per cent higher, while the Nifty was at 10,802, up 4 points or 0,04 per cent firmer.

The top gainers on the 30-share benchmark were SBI, Bharti Airtel, HDFC Bank, Kotak Bank and ICICI Bank, all rising between 1.20 and 2 per cent.

The laggards were led by Sun Pharma, which plunged 8.5 per cent, followed by Tata Motors (down 4.84 per cent), Asian Paints (down 2.95 per cent), Maruti (down 2.57 per cent) and IndusInd Bank (down 2.02 per cent).

Telecom sector shares gained more than 1 per cent on the Sensex. Banking and finance sector shares also rose 0.87 per cent and 0.60 per cent respectively during the session. Metal shares also gained 0.56 per cent.

On the other hand, auto sector shares dropped 1.6 per cent, followed by healthcare that was down 1.55 per cent, consumer durables that lost 1.4 per cent and oil and gas and energy sector shares that lost 0.96 and 0.82 per cent respectively.

India Ratings revises steel sector growth forecast downwards to 4% from 7%

Rohit Sadaka, Director-Large Corporates, India Ratings and Research

The demand growth in the steel sector in India is expected to be lower at around 4 per cent in 2019-20, as against the earlier estimated growth of 7 per cent.

India Ratings and Research (Ind-Ra) has revised its outlook for the steel sector to stable-to-negative from stable for the remaining part of FY 20 due to sluggish demand growth in the segment.

The poor demand growth is mainly on account of a mix of structural and cyclical concerns in end-user sectors including auto and real estate construction. Click here to read in full the report on India Ratings revises steel sector growth forecast .

Is the crude output agreement falling apart?

Notwithstanding the cautious optimism expressed by many observers over global growth,  crude oil  – the universal intermediate – has been under pressure in recent times due to a combination of factors, including the stronger dollar and the ongoing trade war between the US and China.

Brent crude has been hovering around $60 a barrel, supported by financial investors, and to an extent, disruption in Venezuelan oil supplies. However, there is now an increasing belief that the discipline among producers, who had agreed to an output cut, is becoming tenuous. There is reason to believe that many producers have begun to raise output. Click here to read in full the report on crude output agreement .

Asian stocks track Chinese gains, pound finds a floor

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Stocks followed a firmer Chinese lead on Wednesday after a report showed growth in the country's service sector accelerating despite broader economic headwinds, while the pound halted its decline on hopes a no-deal Brexit may yet be averted.

In early European trade, the pan-region Euro Stoxx 50 futures rose 0.75 per cent, Germany's DAX futures gained 0.75 per cent and Britain's FTSE futures advanced 0.5 per cent. Click here to read in full the Asian markets report .

Bonds fall after poor GDP show

As bond traders around the world rejoice in this year’s dizzying debt rally, the mood is more tempered in India.

Yields have barely budged despite the governments recent measures to lift Asia’s third-biggest economy. Even prediction of deeper interest-rate cuts by Goldman Sachs Group Inc after Friday’s data showed growth hitting a six-year low did not push up bond prices a whole lot on Tuesday. Click here to read in full the report on bonds fall after poor GDP show.

Weak factory data pulls back dollar as Brexit delay hopes boost pound

The dollar pulled back on Wednesday as weak US manufacturing stoked wagers on aggressive policy easing, while the British pound recouped losses in the wake of a parliamentary vote that opened the door for another Brexit delay. Click here to read in full the global forex report .

Rupee rebounds against US dollar in opening trade

The rupee rebounded 19 paise to 72.20 against the US dollar in early trade on Wednesday, amid weakening of the American currency in overseas market.

On Tuesday, the rupee had dropped sharply by 97 paise to more than nine-month low of 72.39 against the US dollar as heavy sell-off in the domestic equity market, weak macro environment and a stronger greenback kept investors edgy. Click here to read in full the rupee report .

Services growth slows in August on weaker demand

The Hotelivate report estimates the number of hotel rooms to grow to 3.33 million by 2023. DragonImages

Activity in the dominant services industry expanded at a slower pace in August as demand softened, according to a business survey on Wednesday, although business optimism hit a one-year high.

The IHS Markit Services Purchasing Managers' Index declined to 52.4 in August from July's year high of 53.8, still comfortably above the 50-mark separating growth from contraction and higher than the 51.9 in a Reuters poll of analysts. Click here to read in full the report on services growth slows in August .

Asia stocks bounce on China’s service sector growth, pound steadies

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Asian stocks bounced on Wednesday, led by Chinese markets after a report showed growth in the country's service sector accelerating despite broader economic headwinds, while the pound halted its decline on hopes a no-deal Brexit may yet be averted.

The Shanghai Composite Index added 0.45per cent while the blue-chip CSI300 index gained 0.5per cent after activity in China's services sector expanded at the fastest pace in three months in August, according to a business survey. Click here to read in full the Asian markets report .

Praj Industries likely to gain on new technology

Praj Industries on Tuesday announced the commercialisation of its ‘enfinity’ technology in the US that is a proprietary of the company.

It will be deployed to produce ethanol and other co-products using sugarcane bagasse in the US - first bagasse-based bio-refinery, which is being jointly promoted by Florida-based Omega Energy, a developer of renewable energy projects, while Louisiana-based Lasuca Sugar, a cane sugar producer, will supply bagasse feedstock.

Why PSB stocks can continue to fall post bank merger plans

The  big bank merger announced by the Centre last week, has not gone down well with investors. Most of the public sector banks proposed to be merged with others, have lost 9-12 per cent on Tuesday.

This has already eroded the Centre’s holdings in the 12 PSU Banks (forming part of the merger proposal) by over ₹6,500 crore and other public shareholders by about ₹1,800 crore, in a single day. But the worst may not be over yet. Click here to read in full why PSB stocks can continue to fall post merger plans .

What to watch: IndiaMart stake in Vyapar may pay

IndiaMart InterMesh on Tuesday made investments in Vyapar, a mobile-based business accounting software for SMEs. IndiaMart led the Series A investment round in Simply Vyapar Apps Pvt Ltd, owner of Vyapar, of ₹36 crore, along with participation of existing investors India Quotient and Axilor. Vyapar is an invoice accounting and stock inventory app with over 10 lakh downloads. SME businesses can use the app or desktop version for billing GST invoices.

Sensex, Nifty slip into the red

The Sensex and the Nifty slipped into the red after opening Wednesday's session little changed from Tuesday's close.

The Sensex slipped 60 points or 0.16 per cent to quote at 36,517, while the Nifty was trading at 10,773, down 24 points or 0.23 per cent lower.

The top gainers in the Sensex pack were SBI, ITC, Vedanta, Bharti Airtel and L&T, while the laggards were Sun Pharma, which dropped 3.63 per cent, Tata Motors (down 2.66 per cent), IndusInd Bank (down 2.54 per cent), Maruti (down 1.31 per cent) and Asian Paints (down 1.27 per cent).

According to an agency report, the domestic equity market opened on a volatile note on tracking heavy foreign fund outflow and mixed cues from global markets amid rising fears of an impending recession and escalation in US-China trade war.

In the previous session on Tuesday, the BSE barometer ended 769.88 points, or 2.06 per cent, lower at 36,562.91, while the Nifty sank 225.35 points, or 2.04 per cent, to settle at 10,797.90.

On Tuesday, foreign portfolio investors sold shares worth a net of Rs 2,016.20 crore, while domestic institutional investors purchased shares worth Rs 1,251.35 crore, provisional data showed.

According to traders, besides heavy foreign fund outflow, continually rising fears of a global recession and the escalating trade war between the US and China kept market participants jittery.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Korea were trading on a positive note in their respective late morning sessions, while those in Japan were in the red.

On Wall Street, stock exchanges ended significantly lower on Tuesday.

Investor sentiment was also weak amid deceleration of economic growth due to fall in consumption and subdued manufacturing activity diminished the scope for a turnaround in the near-term, said Vinod Nair, Head of Research, Geojit Financial Services.

The rupee, meanwhile, recovered 11 paise against its previous close to trade at 72.28 in early session.

Global oil benchmark Brent crude was trading 0.17 per cent higher at 58.36 per barrel. (with inputs from PTI)

What to watch: Linde India: Focus on open offer

Linde India shares will remain in focus, as the open offer for acquisition of up to 2.13 crore shares, representing 25 per cent of its fully diluted voting equity share capital, from the BOC Group (and others) will remain open till September 17. The floor price has been fixed at ₹478. Earlier, the company had rejected the delisting offer in January (due to the global takeover), as it felt the discovered price of ₹2,025 was too high against the then floor price of ₹428.50.

As shorts hit record levels, experts feel market could reverse

If the huge build-up of short positions by foreign portfolio investors (FPIs) is any indication, the domestic stock markets are likely to see a sharp reversal in trend.

FPIs, who are among the largest equity futures and options (F&O) traders in India, are holding short positions of more than one lakh contracts on the National Stock Exchange. The ‘Put ‘and ‘Call’ ratio in F&O too is at a near eight-year high, indicating that traders are most bearish on India’s markets in nearly a decade. Click here to read in full the report on market could reverse as shorts hit record levels .

MCX tanks 10% on whistleblower allegations

Shares of MCX, the country’s largest commodity exchange, tanked over 10 per cent as market regulator SEBI sought clarification from the exchange on a whistleblower allegation of trouble in settlement of its recent gold and cotton contracts. Shares of the company on the BSE were down 10.09 per cent at ₹879 on Tuesday. Clck here to read in full the report on MCX shares tank on whistleblower allegations .

Opening bell

The benchmark indices the BSE Sensex and the NSE Nifty opened Wednesday's session flat. The Sensex was trading at 36,569, up 6 points, while the Nifty was at 10,788, down 9 points or 0.08 per cent lower.

Today's Pick: Ambuja Cements (₹193.2): Sell

Aerial view of the Ambuja cement plant, Kolkata.(file photo)

Investors with a short-term perspective can sell the stock of Ambuja Cements at current levels. The stock has been in a medium-term downtrend since encountering a key resistance at ₹240 in late May 2019. While trending down, the stock breached a key support at ₹210 and the 200-day moving average placed at around ₹215 levels in July and continued to trend downwards. Click here to read in full Today's Pick on Ambuja Cements .