Markets: Sensex drops 372 points to end at 37,090

Nifty sheds 130 points to close at 11,148

 

May 13 | 4:00 pm

Closing bell

The benchmark indices, the Sensex and Nifty, closed sharply lower on Monday, after trading flat for most of the day.

The Sensex ended down 372 points or 0.99 per cent at 37,090, while the Nifty finished at 11,148, down 130 points or 1.16 per cent weaker.

The top gainers on the Sensex were HDFC, Bajaj Finance, Hindustan Unilever, Infosys and Coal India, while the laggards were Sun Pharma, YES Bank, Tata Steel, IndusInd Bank and Tata Motors.

All the sectoral indices with the exception of Information Technology ended in negative territory, Among the major losers were healthcare, basic materials, industrials, utilities, auto, banking shares, capital goods, power, metal and realty.

 

May 13 | 3:57 pm

China's yuan slumps to 2019 low as trade war escalates

 

China's yuan was set for its worst daily fall in nine months on Monday as trade negotiations between the US and China ended after US President Donald Trump raised tariffs on Chinese goods.

Currency moves in response to the latest trade hostilities have been muted, but on Monday the yuan fell 0.8 per cent to 6.9040, its weakest since December 27. Some analysts say it may breach 7 per dollar in coming months, a level last seen during the global financial crisis. Click here to read the global forex markets report in full.

May 13 | 3:50 pm

Oil prices up as tanker attacks heighten supply concerns

 

Oil futures rose on Monday on increasing concerns about supply disruptions in West Asia even as investors and traders fretted over global economic growth prospects amid a stand-off in the Sino-US trade talks.

Brent crude futures were at $71.71 a barrel by 0912 GMT, up $1.09. US West Texas Intermediate (WTI) futures were at $62.45 per barrel, up 79 cents. Click here to read in full the global oil markets report.

 

May 13 | 3:30 pm

Auto stocks lead European shares lower

File pic   -  Bloomberg

 

European shares extended losses early on Monday from the biggest weekly slump this year as the US-China stand-off quelled hopes that the two largest economies will be able to resolve their trade dispute anytime soon.

The STOXX 600 index fell 0.1 per cent by 0720 GMT, with Germany's trade-sensitive DAX under pressure more than its peers. Click here to read in full the European markets report.

May 13 | 3:25 pm

Stocks, yuan fall as US-China seen deadlocked in trade talks

Japan's Nikkei average dropped 0.3 per cent. File Photo   -  Bloomberg

US stock futures and Asian shares fell on Monday on growing anxiety over whether the US and China will be able to salvage a trade deal, after Washington sharply hiked tariffs and Beijing vowed to retaliate.

The US and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests. Click here to read in full the Asian share markets report.

May 13 | 3:15 pm

Eicher Motors plunges on Q4 miss

 

Eicher Motors Ltd shares plunged nearly 7 per cent to their lowest since January 31.

At the day's low of Rs 18,920, the stock lost Rs 3,913 crore ($556.14 million) in market capitalisation.

The maker of Royal Enfield (RE) motorcycles posted an 18.1 per cent jump in quarterly consolidated profit but missed street estimates. Click here to read in full the Eicher Motors share price report.

May 13 | 2:35 pm

Sensex, Nifty trade in the red

The benchmark indices were trading in the red in the afternoon session on Monday. Sensex was at 37,448, down 14 points or 0.04 per cent lower, while the Nifty was at 11,254, down 24 points or 0.22 per cent lower.

The top gainers on the Sensex were Hindustan Unilever, Infosys, HDFC, Bajaj Finance and Hero MotoCorp. The main laggards were YES Bank, Sun Pharma, L&T, IndusInd Bank and Tata Motors.

May 13 | 1:45 pm

Nifty call: Initiate fresh short positions on fall below 11,255 levels

 

The Sensex and the Nifty began the session on a flat note and turned volatile. Both the indices remain choppy, moving between positive and negative territories. The market breadth of the Nifty index is biased towards declines. Click here to read in full the Nifty call report.

May 13 | 1:30 pm

Sensex, Nifty slip into the red

The Sensex and the Nifty both slipped into the red in the afternoon session on Monday. The Sensex lost 31 points or 0.08 per cent to quote at 37,433, while the Nifty was at 11,253, down 24 points or 0.22 per cent.

 The top gainers on the Sensex were HDFC, Hindustan Unilever, HeroMotoCorp, SBI and Axis Bank, while the laggards were YES Bank, Sun Pharma, L&T, NTPC and Tata Motors.

Among the sectoral indices, telecom sector shares registered gains, while healthcare, industrials, utilities, capital goods, oil & gas and power sector shares lost ground.

According to reports, the domestic market took cues from global stocks that were weighed by trade tensions between the US and China.

May 13 | 1:10 pm

HDFC Q4 net rises 27% to Rs 2,862 cr

Housing finance company HDFC Ltd reported a net profit of Rs 2,113.80 crore. File Photo   -  Bloomberg

 

Housing Development Finance Corporation Ltd (HDFC) reported a 27 per cent increase in fourth quarter standalone net profit at Rs 2,862 crore against Rs 2,257 crore in the year ago period.

The board of India's largest standalone housing finance company recommended final dividend of Rs 17.50 per equity share. Click here to read in full the HDFC results report.

May 13 | 12:30 pm

Benchmark indices mixed at mid-session

The benchmark indices were mixed at mid-session on Monday. The Sensex gained 42 points or 0.11 per cent to trade at 37,505, while the Nifty was flat at 11,275, down 3 points.

The top gainers on the Sensex were HDFC, Hindustan Unilever, Axis Bank, ITC and HDFC Bank, while the laggards were YES Bank, Sun Pharma, NTPC, L&T and Tata Motors.

Among the sectoral indices, telecom and FMCG shares were the major gainers, while the majority of sectoral indices were in negative territory. The major losers were capital goods, healthcare, utilities, industrials, power, metals, oil & gas and auto shares.

May 13 | 12:15 pm

Passenger vehicle sales dip 17% in April

 

Domestic passenger vehicle (PV) sales declined 17.07 per cent to 2,47,541 units in April from 2,98,504 units in the year-ago month.

Domestic car sales declined 19.93 per cent to 1,60,279 units compared to 2,00,183 in April 2018, according to data released by the Society of Indian Automobile Manufacturers (SIAM). Click here to read in full the report on passenger vehicles sales in April

May 13 | 12:00

Zydus Cadila gets USFDA nod for blood pressure lowering drug

 

Drug firm Zydus Cadila on Monday said it has received final nod from the US health regulator to market Chlorthalidone tablets, used to treat high blood pressure. Click here to read in full the report on USFDA nod for Zydus Cadial BP tablets.

May 13 | 11:50 am

PC Jeweller shares rise on board approval to demerge exports unit

Shares of jewellery maker PC Jeweller Limited rose as much as 4.2 per cent to Rs 132.8, their highest since April 26

The stocks rose after the New Delhi-based company said it had received the board’s approval for de-merger of its exports division. Click here to read in full the PC Jeweller share price movement report.

May 3 | 11:40 am

SEBI slaps two showcause notices on HDFC AMC

 

HDFC Asset Management Company (HDFC AMC) Ltd on Monday said it is in receipt of two show cause notices from the Securities and Exchange Board of India (SEBI) in relation to the investments of its Fixed Maturity Plans in debt instruments of Essel Group of companies. Click here to read in full the report on SEBI show cause notices against HDFC AMC.

May 3 | 11:30 am

US-China tensions to contribute to renewed slowdown in global economy, cautions Moody’s

Moody's Investors Service cautioned that the rise in tensions between the United States (US) and China will contribute to a renewed slowdown in systemically important regions of the global economy. This would not only be through the trade channel but also through the impact on sentiment and risk aversion. Click here to read in full the Moody's report on impact of rising US-China trade tensions.

 

May 3 | 11:20 am

Allahabad Bank falls after March-quarter loss widens

 

Shares of Allahabad Bank Limited fall as much 5.8 per cent to Rs 42.45, their lowest since February 20.

The bank’s March-quarter loss widened to Rs 3834 crore while provisions for bad loans grew three per cent.

Its forward PE of -1.45 was lower than the sector average of 13.02. Rivals - Bandhan Bank Limited and RBl Bank Limited have a forward PE of 27.46 and 24.29, respectively.

May 13 | 11:15 am

Indices little changed

The Sensex and Nifty were little changed in mid-morning trade on Monday The Sensex was quoted at 37,515, up 52 points or 0.14 per cent firmer, while the Nifty was at 11,277, down 1.5 points.

The top gainers on the Sensex were ITC, SBI, Axis Bank, HCL Tech and TCS, while the laggards were YES Bank, Sun Pharma, L&T, NTPC and M&M.

 

May 13 | 11:05 am

Gold edges lower as Sino-US trade uncertainty dents yuan

 

Gold prices dipped on Monday as Sino-US trade tensions and uncertainty over a deal weighed on the yuan, making the bullion expensive for buyers in the world's largest consumer - China.

Spot gold was down 0.2 per cent at $1,283.46 per ounce, as of 0351 GMT. US gold futures slipped 0.2 per cent to $1,284.40 an ounce. Click here to read in full the gold markets report.

May 13 | 10:55 am

Reliance entry to digitise 5 million kirana stores by 2023: report

 

Mukesh Ambani-led Reliance Industries’ entry into online retailing will help expand the current 15,000 digitised retail stores to over 5 million by 2023, a study of Bank of America Merrill Lynch said. Click here to read in full the report on how entry of Reliance into online retailing will lead to digitisation of kirana stores.

 

May 13 | 10:50 am

Vakrangee hits over one-month low on weak Q4 results

Shares of technology company Vakrangee Limited fell as much as five per cent to Rs 55.1, their lowest since April 9.

The company posted a 12-fold fall in the consolidated profit of the March-quarter on Friday.

About 1.2 million shares change hands in early trade hours, compared to 30-day average of about 8.3 million shares.

May 13 | 10:40 am

Larsen & Toubro falls as March-quarter profit misses estimates

 

Shares of industrial conglomerate Larsen & Toubro fell as much as 2.6 per cent to Rs 1,320.3 - their biggest intra-day percentage loss since February 13.

March-quarter consolidated profit had missed estimates, the company reported on Friday. Click here to read in full the L&T share price movement report.

May 13 | 10:35 am

Jet Airways slumps after reports of Etihad's non-binding offer

Shares of Jet Airways Ltd fell as much as 11.4 per cent on Monday after media reports said a buyout offer from West Asian carrier Etihad Airways was non-binding and might not guarantee a deal for the struggling Indian carrier.

Etihad, which owns about 24 per cent stake in Jet, submitted a bid for the airline, the unit of State Bank of India (SBI) overseeing the sale of the stricken carrier said on Friday.

That had raised hopes of a bailout for cash-strapped Jet, which has about $1.2 billion in bank debt.

According to a news report on Monday, Etihad wanted a commitment from banks on additional loans once it infuses equity into the company. The carrier had not been able to find a local partner and lenders may need to take about 80 per cent haircut on their outstanding loans to Jet Airways, the report said, citing banking sources. Shares of the carrier, which have tumbled almost 70 per cent over the past year, were down 5 per cent at Rs 144.3, as of 0445 GMT.

Jet, which owes vast sums to its lessors, pilots, fuel suppliers and other parties, stopped all flights from April 17 after its lenders refused to extend more funds to keep the carrier flying.

SBI also received two unsolicited, non-binding bids, the bank said on Friday. Jet and SBI were not immediately available for comments.

May 13 | 10:30 am

Yen firms; Yuan, Australian dollar slip as US-China trade war heats up

 

The safe-haven yen firmed slightly and the Chinese yuan and Australian dollar dipped on Monday, after the latest escalation in the trade war between the US (US) and China.

The world's two biggest economies appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests. Click here to read in full the global forex markets report.

May 13 | 10:25 am

Oil prices mixed amid US-China trade impasse

Oil futures were mixed on Monday, with US (US) crude edging lower, as investors and traders fretted over global economic growth prospects amid a standoff in Sino-US trade talks. Click here to read in full the oil markets report.

 

May 13 | 10:20 am

Stocks, yuan fall as US-China seen deadlocked in trade talks

 

US (US) stock futures fell and Asian shares slipped on Monday on growing uncertainty over whether the US and China will be able to reach a deal to end their escalating trade war. Click here to read in full the Asian share markets report.

May 13 | 10:15 am

Imminent crisis in NBFC sector, says Corporate Affairs Secretary

 

There is an “imminent crisis” in the non-banking financial companies (NBFCs) sector as misadventures by some large entities and credit squeeze present a perfect recipe for disaster, according to Corporate Affairs Secretary Injeti Srinivas. Click here to read in full the report on imminent crisis in NBFC sector.

May 13 | 10:10 am

Corporate credit offtake rises in FY19, but no material change seen

 

Corporate credit offtake increased significantly in the financial year ended March 31, 2019 compared to the previous year, going by data available with major banks. Yet, the situation on the ground has not showed a commensurate change. Click here to read in full the report on rise in corporate credit offtake in FY19.

May 13 | 10:05 am

Rupee slips 26 paise to 70.18 versus USD in early trade

 

The rupee depreciated by 26 paise to 70.18 against the dollar in early trade on Monday amid US-China trade related concerns and rising crude oil prices.

Forex traders said the strengthening of the green-back vis-a-vis other currencies overseas, foreign fund outflows and cautious opening in domestic equities added pressure to the domestic unit. Click here to read in full the rupee report.

May 13 | 10:00 am

Indices recover to trade flat

The Sensex and Nifty recovered to trade flat, after opening in the red on Monday. The Sensex was at 37,461, down 1.88 points or 0.01 per cent, while the Nifty was trading at 11,258, down 19 points or 0.18 per cent.

The top gainers on the Sensex were TCS, Hindustan Unilever, SBI, Infosys and HCL Tech, while the laggards were Larsen & Toubro, YES Bank, Tata Steel, M&M and NTPC.

According to an agency report, the domestic equity benchmarks started on a choppy note tracking weak cues from global markets, as the rising rift between the US and China kept investors on edge.

In the previous session on Friday, the BSE bourse closed 95.92 points, or 0.26 per cent, down at 37,462.99; and the Nifty shed 22.90 points, or 0.20 per cent, to settle at 11,278.90.

Elsewhere in Asia, bourses were trading significantly lower after the near collapse of trade talks with China last week.

US President Donald Trump on Friday imposed a hefty duty on import of Chinese products from 10 per cent to 25 per cent worth more than $200 billion and asking for a similar increase on tariff on the rest of the Chinese import of over $300 billion.

Sustained foreign fund outflows, too, weighed on investor sentiment here, traders said.

Foreign institutional investors (FIIs) sold equity worth Rs 1,245.14 crore on Friday, while domestic institutional investors (DIIs) purchased shares to the tune of Rs 1,057.42 crore, provisional data available with stock exchanges showed.

According to Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas, as we move closer towards the election results day (May 23), one can expect the volatility in the market to only increase further. The 2019 general election continues to be an important near term event for the market.

Meanwhile, on the currency front, rupee depreciated 19 paise to 70.11 against the US dollar.

Brent crude futures, the global oil benchmark, were trading 0.30 per cent higher at $70.83 per barrel. (with inputs from PTI)

 

May 13 | 9:45 am

How NPS has secured retirement of govt staff better than EPFO

NPS

 

Central and State government employees, who were made to subscribe to the National Pension Scheme (NPS), do not have too much to complain about. For, these schemes have delivered far higher returns than the Employees’ Provident Fund Organisation (EPFO) despite following a rather conservative investment strategy. Click here to read in full how NPS has secured retirement of govt staff.

May 13 | 9:30 am

Big Story: Decoding the NPS options

With the all-citizen model under the National Pension System (NPS) completing 10 years, it is a good time to look back at its journey till date.

Despite its low-cost structure, it had earlier not found takers due to rigid investment and withdrawal rules, and higher tax incidence. But, over the past few years, the government and the pension fund regulator, PFRDA (Pension Fund Regulatory and Development Authority), have been proactive, bringing many reforms relating to taxation, investment norms, charges, transactions and withdrawals. Click here to read in full the Big Story on NPS options.

May 13 | 9:15 am

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened lower on Monday. The Sensex was quoted at 37,378, down 84 points or 0.23 per cent lower, while the Nifty was at 11,232, down 46 points or 0.41 per cent weaker.

May 13 | 9:05 am

Index Outlook: Key resistances can cap the rally

Trade disputes, muted expectation from quarterly results and premium valuation will lead to under-performance in the near term, says a market analyst.   -  REUTERS

 

The negative global sentiment triggered a sell-off across Asian markets and domestic markets last week. Both the Sensex and the Nifty slumped sharply on the back of profit-booking in the key large-cap stocks. With continued concern over US-China trade talks and geopolitical tensions, investors should remain cautious in the ensuing week. The crude oil movement and the weakening of the rupee need to be watched. Click here to read in full the Index Outlook for the current week.

May 13 | 9:00 am

Weekly Trading Guide for week beginning May 13, 2019

Resistance may cap upside in SBI

SBI (₹308.05)

SBI tumbled over 5 per cent intra-week, breaking below the key support level of ₹302. However, it clawed back from the low of ₹292.2, recovering almost all the loss after the fourth-quarter results announcement on Friday. Though the weekly candle gives a mixed signal, the daily chart is relatively positive. A key support is at ₹302, which can limit the downside; resistance is at ₹313. A strong break above it can take the stock higher to ₹321-322. A pull-back from ₹322 can trigger a corrective fall to ₹312. But a strong break above ₹322 will increase the likelihood of the stock rallying to ₹330-335. Given the weakness in the broader markets, such a strong rally looks less probable. So the upside is likely to be limited to ₹322 at the moment. On the other hand, if SBI fails to breach the immediate resistance level of ₹313, a fall to ₹302 or even ₹297 is possible. As such, the impact of Friday's results will be short-lived and the overall negative sentiment in the market could weigh on the stock. In that case, SBI can fall to ₹ 290 and ₹287.

Uptrend in ITC under threat

ITC (₹297.7)

ITC moved up in the initial part of the week but failed to sustain higher. The uptrend that has been in place since late February seems to be under threat. A key support is at ₹295 which is likely to be tested in the near term. The stock has to hold above this support in order to keep the sentiment positive. A break below ₹295 can drag the stock initially lower to ₹288-287. A further break below ₹287 will then increase the likelihood of the stock tumbling towards ₹280-278. Such a fall to ₹280-278 will be a good buying opportunity from a long-term perspective. Investors with a long-term perspective can take long positions at ₹285 and accumulate at ₹282 and ₹278. On the other hand, if ITC manages to sustain above ₹295 in the coming days, a bounce to ₹302 — the crucial 21-day moving average resistance — is possible. The stock has to surpass this hurdle to bring back the bullish momentum. Else, a pull-back to ₹295 is possible again. In that case, ITC can remain range-bound between ₹295 and ₹302 for some time.

Infosys can witness a fresh fall

Infosys (₹716.05)

Infosys has crucial supports in the ₹706-703 region, which can be tested in the near term. It’s ability to sustain above this support zone will decide its next move. A bounce from the ₹706-703 support region will ease the downside pressure. It will increase the possibility of the stock moving higher to ₹730-735 in the short term. It will also keep the broader ₹700-775 sideways range intact. Infosys has been trading in this range since mid-January. But if the stock breaks below ₹703 in the coming days, it will come under renewed pressure. Such a break will take the stock initially lower to ₹690-685. A further break below ₹685 will then increase the likelihood of the stock tumbling towards ₹670-665 on profit-booking. Indicators on the chart favour a decline below ₹703 and a fall to ₹670-665 in the coming weeks. However, the region between ₹670 and ₹665 is a crucial long-term support, which may halt the fall. A decisive bounce from the ₹670-665 support zone could be a good buying opportunity from a long-term perspective.

Outlook turns bearish for RIL

RIL (₹1,250.5)

Contrary to an expectation of a rise, RIL tumbled 11 per cent last week. Morgan Stanley, a global brokerage firm, downgrading the stock seems to have made investors book profits, triggering this sharp sell-off. The uptrend that has been in place since October 2018 has reversed, and the outlook has turned bearish. Though there is some support near the current levels, the broader picture is negative. So, any bounce from the current levels may be short-lived and could be restricted to ₹1,300-1,320. A further fall to ₹1,200-1,180 is possible in the coming days. The region around ₹1,180 is a strong long-term trend support which can halt the fall. A bounce from there will be bullish from a long-term perspective. Investors can start buying RIL at ₹1,200 and also accumulate at ₹1,285 and ₹1,295. However, the possibility of a prolonged sideways move between ₹1,180 and ₹1,300 cannot be ruled out after this fall. As such, the rally to fresh highs thereafter might take time. So, investors buying around ₹1,200 will need to be patient and hold the stock for a long period of time.

Down-move to extend in Tata Steel

Tata Steel (₹487.3)

Tata Steel tumbled 11 per cent last week. Reports that the company’s joint venture with German steel maker Thyssenkrupp may not go through was a major trigger for the sell-off in the stock last week. The resistance at ₹560 has held well. It also keeps intact the downtrend that has been in place since January 2018. A strong resistance is in the ₹505-510 region which can cap the upside. A rally beyond ₹510 looks unlikely now. Also, an intermediate bounce to this resistance zone is likely to find fresh sellers coming into the market. A fall to ₹455-450 or even ₹440 is likely in the coming days. A further break below ₹440 will then increase the likelihood of the fall extending to ₹425 or even ₹400. Traders with a short-term perspective can make use of rallies to go short at ₹498 and ₹505. Stop-loss can be placed at ₹522 for the target of ₹455. Revise the stop-loss lower to ₹490 as soon as the stock moves down to ₹475.

The writer is Chief Research Analyst at Kshitij Consultancy Services

 

 

 

 

Published on May 13, 2019