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Domestic shares ended more than one per cent lower on Wednesday, dragged by financial stocks such as Indiabulls Housing Finance Ltd and YES Bank Ltd, amid liquidity concerns.
The benchmark BSE index closed lower by 382.90 points or 1.09 per cent at 34,779.58, while the broader NSE index ended down by 131.70 points or 1.24 per cent at 10,453.05.
Indian markets have been facing a liquidity crunch owing to a depreciating rupee and higher oil prices.
Indiabulls Housing ended 14.3 per cent lower and was the top percentage loser on NSE index. Reliance Industries Ltd dropped 1.1 per cent ahead of the company's September quarter earnings due later in the day.
As per provisional data, foreign institutional investors sold shares worth Rs 1,165.63 crore, while domestic institutional investors bought shares to the tune of Rs 1,059.44 crore on Tuesday.
Stock exchanges will remain closed tomorrow on account of “Dussehra”.
Sundaram Finance hikes deposit rates
Sundaram Finance has hiked the interest rates on fresh deposits/renewals to 7.75 per cent (7.50 per cent) per annum for 12 and 18 months and to 8 per cent (7.75 per cent) for 24 and 36 months. Read more
MCX-Nickel
The contract tumbled over 5 per cent from the high and made a low of ₹911.7 on Tuesday. It has bounced from this low and is currently trading at ₹923 per kg. An immediate support is at ₹910, which is holding well as of now. Read more
Heavy selling in PSU bank, realty, and auto stocks pulled Nifty down by 81.5 points or 0.77 per cent to 10,503.25 and the Sensex by 206.34 points or 0.63 per cent to 34,940.42.
Top five Nifty losers were Indiabulls Housing Finance, YES Bank, Bajaj Finance, BPCL and Adani Ports, while the major gainers were HCL Tech, ITC, Coal India, Wipro and Infosys.
MoonX plans to launch operations
MoonX, Switzerland-based technology startup and a platform for trading crypto assets, is planning to launch its operations from India by the end of next month. It plans to introduce decentralised non-profit trading platform for crypto currencies. Read more
Oil prices extend gains
US West Texas Intermediate crude was up 15 cents, or 0.2 per cent, at $72.07 a barrel by 0255 GMT on Wednesday, having settled up 14 cents. Brent crude was up 12 cents, or 0.2 per cent, at $81.53 a barrel, after settling up 63 cents the session before. Read more
New IPOs
ipo
Bharat Hotels, which runs five-star properties under The LaLiT brand, and micro-finance lender Spandana Sphoorty Financial have received the Securities and Exchange Board of India nod for an IPO. Read more
Heavy selling in realty, auto, infrastructure and oil & gas stocks pulled Sensex down from intraday high of 35,605.43. At 2.05 pm, the BSE index was trading down 80.43 points or 0.23 per cent at 35,082.05 and the NSE index down 44.05 points or 0.42 per cent at 10,540.70.
Liquidity concerns dragged NBFC stocks down. Top five Nifty losers were Indiabulls Housing Finance, YES Bank, Bajaj Finance, BPCL and Adani Ports, while the top five gainers were HCL Tech, Infosys, Wipro, Coal India and HUL.
European shares continued their bounce led by technology shares, as upbeat earning updates including from semiconductor bellwether ASML came to the rescue following a turbulent start to the month.
The pan-European STOXX 600 benchmark index rose 0.5 per cent to a one-week high, having hit a 22-month low last week when jitters over rising US bond yields and geopolitical worries rattled global markets.
RIL shares rise 1.5%
Shares of Reliance Industries rose 1.5 per cent ahead of its September quarter results to be announced later in the day. The stock jumped 1.48 per cent to Rs 1,180.95 on the BSE. Read more
TCS leads the pack
TCS shares corrected sharply by nearly 15 per cent over the past couple of weeks, largely on account of the across-the-board fall in broader markets. But fundamentally, TCS continues to consistently deliver results that are ahead of market expectations. Click here to read more
Top 10 Nifty gainers, losers
Domestic shares pared their gains due to heavy selling in realty, auto, oil & gas and infrastructure stocks amid firm global cues. The Sensex was trading marginally up by 2.75 points or 0.01 per cent at 35,165.23 and the Nifty down 18.75 points or 0.18 per cent at 10,566.
Intraday, the Sensex hit 35,605.43 and the Nifty touched 10,704.05. Domestic shares were unable to play catch-up with global markets, as liquidity concerns dragged down non-banking financial stocks.
Indian markets have been facing a liquidity crunch with a depreciating rupee and higher oil prices. And, the recent string of defaults by non-banking financial firms on debt repayment has compounded worries.
“We should have followed how global markets behaved, but it is more to do with the sell-off. FIIs (foreign institutional investors) are selling regularly after a break of a day... All financials are getting hit badly, liquidity is again becoming tighter,” said AK Prabhakar, head of research at IDBI Capital.
HDFC Capital Builder Value
For investors with a long-term perspective, there are plenty of value-buying opportunities in the market currently. Investors can play this opportunity through value-oriented funds. HDFC Capital Builder Value is one such. Read more
The Business Line Portfolio Star Track Mutual Fund Ratings offer you a simple but effective tool to help you cut through the bewildering clutter of mutual fund investment schemes and zoom in on those funds and schemes which have consistently delivered the best returns to investors, over the longest period of time. Click here to read more
Gold edges lower
Spot gold was down 0.2 per cent to $1,221.56 per ounce at 0438 GMT, but still near a 2-1/2-month high of $1,233.26 per ounce hit on Monday. US gold futures were down 0.5 per cent at $1,225.2 an ounce. Read more
Nifty 50 October Futures (10,585)
Nifty 50 futures contract opened with a wide 100-point gap-up at 10,690, but failed to sustain higher. The contract made a high of 10,699 and has come-off sharply from there giving back all the gains. The price action indicates strong selling interest at higher levels. Read more
MCX gold, silver
Gold prices fell 0.19 per cent to Rs 31,806 per ten gram at the futures trade as participants trimmed their positions in line with a weak global trend. Silver prices were down by Rs 72 to Rs 38,792 per kg. Read more
The S&P BSE Sensex fell 309.87 points from intraday high of 35,605.43 but was still trading higher by 129.09 points or 0.37 per cent at 35,291.57 and the Nifty50 fell 99.3 points from intraday high of 10,704.05 but was still up 20 points or 0.19 per cent at 10,604.75.
Liquidity concerns dragged down non-banking financial stocks. Indian markets have been facing a liquidity crunch with a depreciating rupee and higher oil prices. And, the recent string of defaults by non-banking financial firms on debt repayment has compounded worries.
“We should have followed how global markets behaved, but it is more to do with the sell-off. FIIs (foreign institutional investors) are selling regularly after a break of a day... All financials are getting hit badly, liquidity is again becoming tighter,” said AK Prabhakar, head of research at IDBI Capital.
Foreign investors had net sold $2.59 billion worth of equities this month as of Tuesday, compared with a net sale of $1.49 billion last month. The rally from 10,138 points to 10,710 points is just a pull-back one, Prabhakar added.
Indiabulls Housing Finance Ltd was the top percentage loser on the NSE index, shedding 8.9 per cent. Dewan Housing Finance Corp and Repco Home Finance Ltd fell over 8 per cent each.
Reliance Industries gained 1.3 per cent to a near two-week top ahead of quarterly results due after market hours. The energy conglomerate is expected to report a higher profit for the September quarter, according to I/B/E/S data from Refinitiv.
Shares of Infosys Ltd rose up to 3.8 per cent after the company posted a better-than-expected profit for the September quarter. The company maintained its forecast for revenue growth, but some brokerages remained concerned. _ Reuters
ITC breaks resistance at Rs 288
Shares of ITC Ltd gained as much as 3.18 per cent to Rs 291.65, breaking a resistance at Rs 288.1. Resistance at Rs 288.1 is identified as the 38.2 per cent Fibonacci projection level of the uptrend from June 28 low to September 3 high. Read more
The Sensex fell from intraday high of 35,605 but was still trading higher by 53.88 points or 0.15 per cent at 35,216.36. Similarly, the Nifty was trading marginally up 14.9 points or 0.14 per cent at 10,599.65. Intraday, the NSE index hit 10,704.05.
Major Sensex gainers were Coal India, ITC, Infosys, HUL and ICICI Bank, while the major losers were YES Bank, Maruti, ONGC, Adani Ports and M&M.
Among BSE sectoral indices, realty index fell 1.44 per cent, followed by auto 1.37 per cent, oil & gas 1.04 per cent and metal 0.87 per cent. On the other hand, FMCG gained 1.01 per cent, IT 0.71 per cent and TECk 0.62 per cent.
As per provisional data, domestic institutional investors bought shares worth Rs 1,059.44 crore on Tuesday. The rupee strengthened by 11 paise to 73.37 against the US dollar intraday on increased dollar selling by exporters and banks.
Hero MotoCorp hits 2-week high
Shares of Hero MotorCorp gained as much as 3.5 per cent to Rs 2,995 to their highest since October 3 on positive outlook. Nomura has cut the price target to Rs 3,542 from Rs 3,937, and has maintained 'buy' rating. Read more
Infosys climbs nearly 4%
Shares of India's second largest software services exporter, Infosys Ltd, rose as much as 3.8 per cent to Rs 721.80. The stock was among the top percentage gainers on NSE index. Read more
Bank Nifty
On the put option chain, the in-the-money Bank Nifty Put 25,600 option contract was the most actively traded contract on Tuesday. The put option price was down 40.39 per cent at Rs 334. Read more
Sekura Energy acquires Essel assets
Edelweiss-backed Sekura Energy Ltd has acquired four power transmission assets from Subhash Chandra-led Essel Infraprojects for ₹6,000 crore. While two of these assets — Darbhanga-Motihari Transmission Ltd and NRSS XXXI (B) Transmission Ltd — are already operational, Warora-Kurnool Transmission Ltd and NRSS XXXVI Transmission Ltd are expected to be commissioned in FY 2020. Read more
Sensex gainers, losers
Top 10 Nifty gainers, losers
The Sensex rallied for the fourth straight session on encouraging second quarter earnings by tech major Infosys and positive global cues. Traders said the bullish movement was in line with upbeat Asian shares, following overnight gains at the Wall Street coupled with encouraging earnings by Infosys.
The S&P BSE Sensex surged 442.95 points to intraday high of 35,605.43 against the previous close of 35,162.48. It had rallied 1,161 points in the previous three sessions. The Nifty50 climbed 119.4 points to 10,704.05 against 10,584.75.
Reliance Industries is scheduled to announce its second quarter earnings later in the day.
Infosys emerged the top gainer in the Sensex pack, by surging 2.68 per cent as the company had on Tuesday posted a 10.3 per cent jump in its September quarter consolidated net profit at Rs 4,110 crore, on strong deal pipeline and traction in digital revenues.
P-notes hit 9 1/2-year low
PO16_Going_down_arrow.jpg
Investments in the Indian capital market through P-notes hit a nearly nine-and-a-half year low of Rs 79,548 crore till September after registering a rise in such fund infusion in the preceding month. Read more
Broker's call
Epic Research
Time Technoplast (Buy)
CMP: ₹126
Target: ₹166
L&T Technology slumps nearly 4.5%
L&T Technology Services has completed the acquisition of Bengaluru-based Graphene Semiconductor Services Pvt Ltd, a provider of end-to-end semiconductor services. The company shares were down 4.43 per cent at Rs 1,577 on the BSE. Read more
Alembic Pharma jumps nearly 2%
Shares of Alembic Pharmaceuticals were trading up 1.73 per cent at Rs 610 on the BSE as the company has received tentative approval from the US Food and Drug Administration for its Alogliptin tablets in the strengths of 6.25 mg, 12.5 mg and 25 mg. Read more
Cochin Shipyard to buy back at Rs 455
Cochin Shipyard board has approved buyback of equity shares worth up to ₹200 crore. Accordingly, the company will buy back fully-paid equity shares of ₹10 each not exceeding 43.95 lakh equity shares at ₹455 a share. Read more
What to watch
Reliance Industries will declare its quarterly results for the period ended September 2018. Analysts will focus on the telecom and retail segments’ outlook from Reliance Industries.
Lemon Tree Hotels has signed a licence agreement for a 70-room property located near BKC, Mumbai, under the 'Lemon Tree Hotel' brand. Investors in Lemon Tree will closely monitor the development.
Shares of Responsive Industries will remain in focus on Wednesday, as its board will meet to consider the financial results for the period ended September 30, 2018, and a buyback proposal.
Opening bell
The 30-share BSE index Sensex opened at 35,557.22 points, up 394.74 against the previous close of 35,162.48 points. The 50-share NSE index Nifty opened 119.3 points up at 10,704.05 against the previous close of 10,584.75 points.
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:
₹1992 • HDFC Bank
₹696 • Infosys
₹282 • ITC
₹165 • ONGC
₹1163 • Reliance Ind.
₹270 • SBI
₹1961 • TCS
10589 • Nifty 50 Futures
S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.
9.00 am
Today's Pick
We recommend a buy in the stock of Torrent Power at the current levels of Rs 245.1. The short-term outlook is bullish for the stock. Targets are ₹255 and ₹260. Read more
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