Markets Live: Sensex ends down 95 points

Markets close

Benchmark indices ended lower on Friday. Price correction on the first session of the new June series derivatives today took its toll.

The benchmark BSE index closed down by 95.12 points or 0.27 per cent at 35,227.26. The broader NSE index ended lower by 39.95 points or 0.37 per cent at 10,696.20.  During the session, the Nifty 50 moved between 10,764.75 and 10,681.50.

The Sensex traded between 35,438.22 and 35,177.35 on alternate bouts of buying and selling. It had rallied 416.27 points yesterday on optimistic buying by participants ahead of GDP numbers.

Weakness in banking stocks offset gains in auto despite robust GDP numbers for the January-March quarter amid sustained foreign fund outflows.

Leads from other Asian markets too were not supportive on renewed global trade war worries.

Markets started on a positive note after data showed that India’s January-March 2018 GDP growth soared to a seven-quarter high of 7.7 per cent, spurred by robust performance of manufacturing, construction and service sectors, helping it retain the tag of the fastest growing major economy.

However, early gains were completely wiped-off after selling emerged in the later part of the session.

Both the Sensex and Nifty, however, registered gains for the week.

The Sensex climbed 302.39 points, or 0.87 per cent, while the Nifty gained 91.05 points, or 0.86 per cent, during this week.  (PTI)

Insecticides (India) Limited has announced a ₹200-crore expansion plan to increase its capacity in the next three years. In the first two years, it would spend about ₹100 crore, followed by an investment of ₹100 crore in 2020. Read more

Tata Chemicals today said it has completed the sale of its Haldia fertiliser unit in West Bengal and the trading business to Netherlands-based Indorama Holdings BV for ₹872.84 crore.

In a regulatory filing, the company said it has sold the Phosphatic fertiliser business and the trading business comprising bulk and non-bulk fertilisers by way of slump sale on a going concern basis to IRC Agrochemicals, a wholly-owned subsidiary of Indorama Holdings BV. Read more

Vedanta shares gain

Shares of Vedanta rose as much as 4.1 per cent to Rs 258.40, its biggest intraday percentage gain since April 19.

The copper and aluminium producer said the Delhi High Court has allowed petition directing the Indian government to extend production-sharing contract for the Rajasthan block by 10 years on the same terms and conditions. Vedanta said the court has ordered the government to communicate the decision within two weeks.

More than 10 million shares were traded vs their 30-day moving average volume of 13.7 million.

Eighteen of 20 brokerages have rated the stock “buy” or higher, 2 “hold”; their median price target is Rs 377.50, according to Thomson Reuters data.

The Vedanta stock had taken a beating over the past one week after more than a dozen people were killed in police firing in Tamil Nadu as agitations seeking closure of a Vedanta copper smelter turned violent; plant was eventually shut by the State Government.

The stock has fallen 24.7 per cent this year compared with 8.8 per cent decline in the Nifty Metal index.

CG Power extends losses

Shares of CG Power And Industrial Solutions Ltd , which supplies industrial machinery such as motors and generators, fell nearly 13 per cent to Rs 53.60, the lowest since April 2016. More than 37.5 million shares were traded, versus their 30-day moving average of 2.3 million.  The stock is on track to post losses for a fourth straight session; lost nearly 20 per cent in the previous session after the company posted results after trading hours on Wednesday.

March-quarter consolidated loss widened to Rs 582 crore, hurt by exceptional loss of Rs 415 crore. Citi said Q4 was below expectations. It has  retained 'sell' on stock with target price of Rs 76.

"Though certain international operations are profitable, the albatross around the neck are the loss making ones, which negate the positives of the domestic operations as carrying costs keep mounting," Citi said. The Hungarian business divestment, which has been a drag on profitability, has been delayed, it added.

The stock has fallen nearly 34 per cent this year up to Thursday's close. -- Reuters

You will now get rewarded by up to ₹1 crore by the income tax department for giving information about benami transactions and properties and the income earned on such properties by hidden investors and beneficial owners. Read more

Nifty 50 June Futures (10,704) The Nifty 50 futures contract is continuing to trade strong. Though the contract had come off from the day’s high of 10,744, it has reversed higher again after making a low of 10,681. Read more

Shares edged lower on Friday as losses in financials offset gains in auto stocks, with investor focus shifting to the progress of seasonal rains in a country where more than half the population is dependent on agriculture.

The broader NSE index fell 0.31 per cent to 10,703.25 as of 1.20 pm while the benchmark BSE index inched down 0.20 per cent or 70.45 points to 35,251.93.

“The next big trigger will be how the monsoon pans out,” said Gaurang Shah, head investment strategist, Geojit Financial Services.

India's weather office on Wednesday retained its average monsoon rains forecast.

“We have come a long way, so possibly we will see some amount of consolidation. Markets will likely drag around 10,750 level.”

Technicals suggest that the NSE Index which broke above a resistance at 10,706 on Thursday may test another one around 10,883.7 level. Both the indexes were on track to end the week more than 1 per cent higher.

Meanwhile, government data showed on Thursday that Indian economy grew 7.7 per cent year-on-year in January-March, its quickest pace in nearly two years driven by higher growth in manufacturing, the farm sector and construction.

The faster pace of growth in the latest quarter might also strengthen expectations of an interest rate increase by the Indian central bank in its reviews monetary policy next week.

Auto stocks gained, with Maruti Suzuki Ltd, up 2.1 per cent and Bajaj Auto Ltd, up 5 per cent, leading the gains. Both the automakers reported strong sales in the fourth quarter.

However, Eicher Motors Ltd dropped 3.4 per cent despite the company posting a 23 per cent rise in motorcycle sales.

Financial stocks lost momentum, with HDFC Bank Ltd falling over 1 per cent. State-run lenders also declined with the Nifty PSU bank index declining 1.5 per cent.

But, shares in ICICI Bank were 1.4 per cent higher, after the lender denied media report that it has asked its Chief Executive Chanda Kochhar to go on leave until an independent inquiry on alleged cases of impropriety is concluded. Shares had earlier gained as much as nearly 5 percent.  -- Reuters

National Housing Bank (NHB) has granted two housing finance companies (HFCs) Certification of Registration to commence housing finance business. The two HFCs that have got the Certificate of Registration are Mumbai-based APAC Housing Finance Private Ltd and Ajmer-based Wonder Home Finance Ltd.

GST collections fall

The Finance Ministry has announced that collections from Goods and Services Tax (GST) went up to Rs 94,016 crore in May. This was lower than the collection in April at Rs 1,03,458 crore, but higher compared to the average monthly collection of Rs 89,885 crore of 2017-18. Read more

The country's largest passenger car manufacturer Maruti Suzuki India (MSIL) on Friday reported a 24 per cent growth in domestic passenger vehicle sales during May to 1,61,497 units, as compared with 1,30,248 units in the same month last year. Read more

Maruti share price chart on the NSE

Domestic indices were trading marginally lower on Friday.

The Sensex was down 33.53 points or 0.09 per cent at 35,288.85 and the Nifty was down 23.60 points or 0.22 per cent at 10,712.55.

Top five Sensex gainers were Bajaj Auto, Maruti, Hero MotoCorp, Tata Motors and ICICI Bank.

Barring auto, all other BSE sectoral indices were trading in the red.

Factory performance appears to have taken a small break as the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) slipped a tad to 51.2 in May from 51.6 in April.  Read more

Participating managers suggested that enhanced marketing initiatives supported new client wins.

Technicals

The NSE Nifty may test resistance at 10,884. The NSE index which broke above a resistance at 10,706 on Thursday, may test another one at 10,883.7. The 10,883.7 resistance level is identified as the 76.4 per cent retracement level of the correction from the high on January 29 to the low on March 23.

The index closed above the 38.2 per cent retracement level at 10,417.8 on May 23 and settled above the 50 per cent level at 10,561.7 on May 30, suggesting that it could move towards 10,883.7. On May 30, RSI took support at 50 level, a bullish sign.

MACD is also positive and above its signal line.

The 76.4 pct retracement level may act as a critical resistance as the index is also forming a triangle pattern.

A breakout above the triangle may lead to the continuation of the uptrend and a move towards the record high of 11,171.55 hit on January 29, 2018.

Beating all expectations, the Indian economy registered a growth rate of 7.7 per cent for the January-March quarter, the fastest it has grown since April-June 2016-17. Read more

The Bank Nifty May futures contract surged 702 points to end at 26,953 for the May month expiry on Thursday. The underlying value of the contract closed at 26,956.20. The Nifty Private Bank index closed in positive territory, gaining 324 points or 2.18 per cent, while the Nifty PSU Bank index rose marginally by 0.35 per cent. Read more

ICICI Bank on Friday said that its Managing Director and CEO Chanda Kochhar is still on the job and is on a planned annual leave. “The ICICI Bank board denies having asked Chanda Kochhar to go on leave. She is on her annual leave which was planned in advance,” an ICICI Bank spokesperson said, adding that the board has not appointed any search committee to find her successor. Read more

Auto fuel prices continued the downward movement on Friday. IndianOil cut the price of petrol by 6 paisa a litre and diesel by 5 paisa a litre in the national capital. After the revision, the petrol was sold at ₹78.29 a litre while diesel retailed at ₹69.20 a litre in Delhi. Read more

Comex gold: prospects brighten, big picture supportive, bullish

Comex gold futures, rose on Thursday, as the dollar eased from 6-month highs hit earlier this week, with prices further supported by concerns over US.-China trade. Comex gold futures have been consolidating from recent lows. The overall picture still hints at bullishness ahead, while crucial supports hold at $1,278 levels. Read more

The BSE Sensex advanced about 106 points in early session today, maintaining its positive form for the second day following robust growth data for the March quarter. Investors creating new positions at the beginning of the June futures and options (F&O) series also lifted the key indices.

The 30-share index, which had rallied 416.27 points in the previous session, was trading between 35,438.22 and 35,267.81. At about 10.20 am, the Sensex was quoting at 35,385.12, up 62.74 points or 0.18 per cent.

Sectoral indices, led by metal, auto, teck, IT, consumer durables and capital goods, were trading in the positive zone with gains of up to 1.13 per cent. The NSE Nifty also went up by 16.10 points or 0.15 per cent to 10,752.25.

Official data released after market hours yesterday showed that India’s January-March 2018 GDP growth soared to a seven-quarter high of 7.7 per cent, spurred by robust performance of manufacturing, construction and service sectors, helping it retain the tag of the fastest growing major economy.

The rupee appreciating against the dollar also fuelled the uptrend, brokers said.

Auto stocks were in demand on expectations of encouraging sales data for the May month, to be released today. Big gainers included ICICI Bank, Bajaj Auto, Maruti Suzuki, Sun Pharma, L&T, Tata Motors, Hero MotoCorp, Wipro, HDFC Ltd, TCS, Infosys, HUL and RIL, climbing up to 3.64 per cent.

Rising for the third day, the rupee appreciated by 24 paise to 67.17 against the US dollar today on continued selling of the American currency by banks and exporters amid robust macroeconomic data.  Read more

ICICI Bank shares move up

Shares of ICICI Bank Ltd, the country's third-largest lender by assets, rose as much as 4.95 per cent to Rs 299.95. CEO Chanda Kochhar has been asked to proceed on indefinite leave, a news report said. Read more

Chanda Kochhar

What to watch

Will firm fuel prices hurt automobile nos?

Shares of automobile companies such as Tata Motors, Maruti Suzuki, Ashok Leyland, M&M, Eicher Motors, Bajaj Auto, TVS Motor and Hero Motor Company will remain in focus, as they are set to declare their sales figures for May beginning Friday. Automobile companies started the new financial year on a strong note with robust double-digit growth, with companies posting healthy sales in April. However, one has to see whether the momentum sustains in the face of firm fuel prices. -- Our Bureau

Asian markets

Japan's Nikkei shed 0.1 percent. File Photo

Asian equities sagged on Friday as worries about US trade policy hit global financial markets, which were already shaken this week by political turmoil in Italy. Wall Street shares posted deep losses overnight after the United States said it would impose tariffs on aluminium and steel imports from Canada, Mexico and the European Union. Read more

Today's stock pick

Multi Commodity Exchange of India (₹856.7) : Buy

Traders with a short-term perspective can go long at current levels and also accumulate on dips at ₹840 and ₹820.  Read more

Opening bell

The 30-share BSE index Sensex opened higher by 51.60 points at 35,373.98 against the previous close of 35,322.38 and the 50-share NSE index Nifty opened flat at 10,738.45 against Thursday's close of 10,736.15.

Day Trading Guide

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

₹2136 • HDFC Bank

₹1232 • Infosys

Click here to view the full guide